ck0000898745-20231031
PRINCIPAL
FUNDS, INC.
(“PFI”
or the "Registrant")
Class
A Shares
Class
C Shares
Class
J Shares
Institutional
Class Shares
Class
R-1 Shares
Class
R-3 Shares
Class
R-4 Shares
Class
R-5 Shares
Class
R-6 Shares
The
date of this Prospectus is March 1,
2024
The
ticker symbols for series and share classes begin on the next page.
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The
Securities and Exchange Commission and the Commodity Futures Trading
Commission have not approved or disapproved these securities or passed
upon the adequacy of this Prospectus. Any representation to the contrary
is a criminal offense. |
This
page left blank intentionally.
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FUNDS
OF THE REGISTRANT |
(each,
a "Fund" and, together, the "Funds") |
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Ticker
Symbols by Share Class |
Fund/Portfolio |
A |
C |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
California
Municipal |
SRCMX |
SRCCX |
| PCMFX |
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Core
Fixed Income |
CMPIX |
| PIOJX |
PIOIX |
PIOMX |
PIOOX |
PIOPX |
PIOQX |
PICNX |
Core
Plus Bond |
PRBDX |
| PBMJX |
PMSIX |
PBOMX |
PBMMX |
PBMSX |
PBMPX |
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Diversified
Income |
PGBAX |
PGDCX |
| PGDIX |
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| PGBLX |
Diversified
International |
PRWLX |
| PIIJX |
PIIIX |
PDVIX |
PINRX |
PINLX |
PINPX |
PDIFX |
Equity
Income |
PQIAX |
PEUCX |
PEIJX |
PEIIX |
PIEMX |
PEIOX |
PEIPX |
PEIQX |
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Finisterre
Emerging Markets Total Return Bond |
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| PFUMX |
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Global
Emerging Markets |
PRIAX |
| PIEJX |
PIEIX |
PIXEX |
PEAPX |
PESSX |
PEPSX |
PIIMX |
Global
Real Estate Securities |
POSAX |
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| POSIX |
| PGRKX |
PGRVX |
PGRUX |
PGRSX |
Government
& High Quality Bond |
CMPGX |
| PMRJX |
PMRIX |
PMGRX |
PRCMX |
PMRDX |
PMREX |
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Government
Money Market |
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| PGVXX |
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| PGWXX |
High
Income |
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| PYHIX |
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High
Yield |
CPHYX |
CCHIX |
| PHYTX |
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| PHYFX |
Inflation
Protection |
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| PIPJX |
PIPIX |
PISPX |
PIFPX |
PIFSX |
PBPPX |
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International
I |
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| PINIX |
PPISX |
PRPPX |
PUPPX |
PTPPX |
PIIDX |
LargeCap
Growth I |
PLGAX |
| PLGJX |
PLGIX |
PCRSX |
PPUMX |
PPUSX |
PPUPX |
PLCGX |
LargeCap
S&P 500 Index |
PLSAX |
| PSPJX |
PLFIX |
PLPIX |
PLFMX |
PLFSX |
PLFPX |
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LargeCap
Value III |
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| PLVJX |
PLVIX |
PESAX |
PPSFX |
PPSSX |
PPSRX |
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MidCap |
PEMGX |
PMBCX |
PMBJX |
PCBIX |
PMSBX |
PMBMX |
PMBSX |
PMBPX |
PMAQX |
MidCap
Growth |
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| PMGJX |
PGWIX |
PMSGX |
PFPPX |
PIPPX |
PHPPX |
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MidCap
Growth III |
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| PPQJX |
PPIMX |
PHASX |
PPQMX |
PPQSX |
PPQPX |
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MidCap
S&P 400 Index |
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| PMFJX |
MPSIX |
PMSSX |
PMFMX |
PMFSX |
PMFPX |
PMAPX |
MidCap
Value I |
PCMVX |
| PVEJX |
PVMIX |
PLASX |
PMPRX |
PABWX |
PABVX |
PCMSX |
Money
Market |
PCSXX |
| PMJXX |
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Overseas |
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| PINZX |
| PINTX |
PINUX |
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Principal
Capital Appreciation |
CMNWX |
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| PWCIX |
PCAMX |
PCAOX |
PCAPX |
PCAQX |
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Principal
LifeTime Strategic Income |
PALTX |
| PLSJX |
PLSIX |
PLAIX |
PLSMX |
PLSSX |
PLSPX |
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Principal
LifeTime 2015 |
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| LTINX |
LTSGX |
LTAPX |
LTSLX |
LTPFX |
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Principal
LifeTime 2020 |
PTBAX |
| PLFJX |
PLWIX |
PWASX |
PTBMX |
PTBSX |
PTBPX |
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Principal
LifeTime 2025 |
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| LTSTX |
LTSNX |
LTVPX |
LTEEX |
LTPDX |
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Principal
LifeTime 2030 |
PTCAX |
| PLTJX |
PMTIX |
PXASX |
PTCMX |
PTCSX |
PTCPX |
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Principal
LifeTime 2035 |
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| LTIUX |
LTANX |
LTAOX |
LTSEX |
LTPEX |
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Principal
LifeTime 2040 |
PTDAX |
| PTDJX |
PTDIX |
PYASX |
PTDMX |
PTDSX |
PTDPX |
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Principal
LifeTime 2045 |
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| LTRIX |
LTRGX |
LTRVX |
LTRLX |
LTRDX |
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Principal
LifeTime 2050 |
PPEAX |
| PFLJX |
PPLIX |
PZASX |
PTERX |
PTESX |
PTEFX |
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Principal
LifeTime 2055 |
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| LTFIX |
LTFGX |
LTFDX |
LTFLX |
LTFPX |
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Principal
LifeTime 2060 |
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| PLTAX |
PLTZX |
PLTRX |
PLTCX |
PLTMX |
PLTOX |
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Principal
LifeTime 2065 |
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| PLJIX |
PLJAX |
PLJCX |
PLJDX |
PLJEX |
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Principal
LifeTime 2070 |
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| PLTLX |
PLTGX |
PLTSX |
PLTDX |
PLTBX |
PLTFX |
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Principal
LifeTime Hybrid Income |
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| PHJFX |
PHTFX |
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| PLTYX |
Principal
LifeTime Hybrid 2015 |
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| PHJMX |
PHTMX |
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| PLRRX |
Principal
LifeTime Hybrid 2020 |
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| PHJTX |
PHTTX |
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| PLTTX |
Principal
LifeTime Hybrid 2025 |
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| PHJQX |
PHTQX |
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| PLFTX |
Principal
LifeTime Hybrid 2030 |
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| PHJNX |
PHTNX |
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| PLZTX |
Principal
LifeTime Hybrid 2035 |
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| PHJJX |
PHTJX |
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| PLRTX |
Principal
LifeTime Hybrid 2040 |
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| PHJEX |
PLTQX |
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| PLMTX |
Principal
LifeTime Hybrid 2045 |
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| PHJYX |
PHTYX |
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| PLNTX |
Principal
LifeTime Hybrid 2050 |
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| PHJUX |
PHTUX |
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| PLJTX |
Principal
LifeTime Hybrid 2055 |
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| PHJBX |
PLTNX |
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| PLHTX |
Principal
LifeTime Hybrid 2060 |
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| PHJGX |
PLTHX |
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| PLKTX |
Principal
LifeTime Hybrid 2065 |
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| PHJDX |
PLHHX |
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| PLHRX |
Principal
LifeTime Hybrid 2070 |
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| PLKJX |
PLKSX |
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| PLKRX |
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FUNDS
OF THE REGISTRANT |
(each,
a "Fund" and, together, the "Funds") |
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Real
Estate Securities |
PRRAX |
PRCEX |
PREJX |
PIREX |
PRAEX |
PRERX |
PRETX |
PREPX |
PFRSX |
SAM
Balanced |
SABPX |
SCBPX |
PSAJX |
PSBIX |
PSBGX |
PBAPX |
PSBLX |
PSBFX |
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SAM
Conservative Balanced |
SAIPX |
SCIPX |
PCBJX |
PCCIX |
PCSSX |
PCBPX |
PCBLX |
PCBFX |
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SAM
Conservative Growth |
SAGPX |
SCGPX |
PCGJX |
PCWIX |
PCGGX |
PCGPX |
PCWSX |
PCWPX |
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SAM
Flexible Income |
SAUPX |
SCUPX |
PFIJX |
PIFIX |
PFIGX |
PFIPX |
PFILX |
PFIFX |
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SAM
Strategic Growth |
SACAX |
SWHCX |
PSWJX |
PSWIX |
PSGGX |
PSGPX |
PSGLX |
PSGFX |
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Short-Term
Income |
SRHQX |
STCCX |
PSJIX |
PSHIX |
PSIMX |
PSIOX |
PSIPX |
PSIQX |
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SmallCap |
PLLAX |
| PSBJX |
PSLIX |
PSABX |
PSBMX |
PSBSX |
PSBPX |
PSMLX |
SmallCap
Growth I |
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| PSIJX |
PGRTX |
PNASX |
PPNMX |
PPNSX |
PPNPX |
PCSMX |
SmallCap
S&P 600 Index |
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| PSSJX |
PSSIX |
PSAPX |
PSSMX |
PSSSX |
PSSPX |
PSPIX |
SmallCap
Value II |
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| PSMJX |
PPVIX |
PCPTX |
PJARX |
PSTWX |
PLARX |
PSMVX |
Tax-Exempt
Bond |
PTEAX |
PTBCX |
| PITEX |
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TABLE
OF CONTENTS |
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FUND
SUMMARIES |
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CALIFORNIA
MUNICIPAL FUND |
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CORE
FIXED INCOME FUND |
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CORE
PLUS BOND FUND |
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DIVERSIFIED
INCOME FUND |
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DIVERSIFIED
INTERNATIONAL FUND |
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EQUITY
INCOME FUND |
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FINISTERRE
EMERGING MARKETS TOTAL RETURN BOND FUND |
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GLOBAL
EMERGING MARKETS FUND |
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GLOBAL
REAL ESTATE SECURITIES FUND |
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GOVERNMENT
& HIGH QUALITY BOND FUND |
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GOVERNMENT
MONEY MARKET FUND |
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HIGH
INCOME FUND |
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HIGH
YIELD FUND |
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INFLATION
PROTECTION FUND |
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INTERNATIONAL
FUND I |
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LARGECAP
GROWTH FUND I |
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LARGECAP
S&P 500 INDEX FUND |
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LARGECAP
VALUE FUND III |
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MIDCAP
FUND |
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MIDCAP
GROWTH FUND |
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MIDCAP
GROWTH FUND III |
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MIDCAP
S&P 400 INDEX FUND |
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MIDCAP
VALUE FUND I |
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MONEY
MARKET FUND |
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OVERSEAS
FUND |
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PRINCIPAL
CAPITAL APPRECIATION FUND |
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PRINCIPAL
LIFETIME STRATEGIC INCOME FUND |
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PRINCIPAL
LIFETIME 2015 FUND |
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PRINCIPAL
LIFETIME 2020 FUND |
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PRINCIPAL
LIFETIME 2025 FUND |
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PRINCIPAL
LIFETIME 2030 FUND |
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PRINCIPAL
LIFETIME 2035 FUND |
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PRINCIPAL
LIFETIME 2040 FUND |
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PRINCIPAL
LIFETIME 2045 FUND |
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PRINCIPAL
LIFETIME 2050 FUND |
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PRINCIPAL
LIFETIME 2055 FUND |
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PRINCIPAL
LIFETIME 2060 FUND |
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PRINCIPAL
LIFETIME 2065 FUND |
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PRINCIPAL
LIFETIME 2070 FUND |
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PRINCIPAL
LIFETIME HYBRID INCOME FUND |
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PRINCIPAL
LIFETIME HYBRID 2015 FUND |
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PRINCIPAL
LIFETIME HYBRID 2020 FUND |
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PRINCIPAL
LIFETIME HYBRID 2025 FUND |
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PRINCIPAL
LIFETIME HYBRID 2030 FUND |
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PRINCIPAL
LIFETIME HYBRID 2035 FUND |
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PRINCIPAL
LIFETIME HYBRID 2040 FUND |
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PRINCIPAL
LIFETIME HYBRID 2045 FUND |
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PRINCIPAL
LIFETIME HYBRID 2050 FUND |
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PRINCIPAL
LIFETIME HYBRID 2055 FUND |
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PRINCIPAL
LIFETIME HYBRID 2060 FUND |
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PRINCIPAL
LIFETIME HYBRID 2065 FUND |
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PRINCIPAL
LIFETIME HYBRID 2070 FUND |
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REAL
ESTATE SECURITIES FUND |
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SAM
(STRATEGIC ASSET MANAGEMENT) BALANCED PORTFOLIO |
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SAM
(STRATEGIC ASSET MANAGEMENT) CONSERVATIVE BALANCED PORTFOLIO |
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SAM
(STRATEGIC ASSET MANAGEMENT) CONSERVATIVE GROWTH PORTFOLIO |
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SAM
(STRATEGIC ASSET MANAGEMENT) FLEXIBLE INCOME PORTFOLIO |
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SAM
(STRATEGIC ASSET MANAGEMENT) STRATEGIC GROWTH PORTFOLIO |
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SHORT-TERM
INCOME FUND |
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SMALLCAP
FUND |
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SMALLCAP
GROWTH FUND I |
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SMALLCAP
S&P 600 INDEX FUND |
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SMALLCAP
VALUE FUND II |
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TAX-EXEMPT
BOND FUND |
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ADDITIONAL
INFORMATION ABOUT INVESTMENT STRATEGIES AND RISKS |
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PORTFOLIO
HOLDINGS INFORMATION |
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MANAGEMENT
OF THE FUNDS |
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PRICING
OF FUND SHARES |
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CONTACT
PRINCIPAL FUNDS, INC. |
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PURCHASE
OF FUND SHARES |
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REDEMPTION
OF FUND SHARES |
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EXCHANGE
OF FUND SHARES |
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DIVIDENDS
AND DISTRIBUTIONS |
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FREQUENT
PURCHASES AND REDEMPTIONS |
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TAX
CONSIDERATIONS |
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CHOOSING
A SHARE CLASS AND THE COSTS OF INVESTING |
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DISTRIBUTION
PLANS AND INTERMEDIARY COMPENSATION |
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FUND ACCOUNT
INFORMATION |
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APPENDIX A
- DESCRIPTION OF BOND RATINGS |
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APPENDIX
B - INTERMEDIARY-SPECIFIC SALES CHARGE WAIVERS AND REDUCTIONS |
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APPENDIX
C - FINANCIAL HIGHLIGHTS |
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ADDITIONAL
INFORMATION |
D |
CALIFORNIA MUNICIPAL
FUND
Objective
The Fund seeks to provide as high a level of current income that
is exempt from federal and state personal income tax as is consistent with
prudent investment management and preservation of capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$100,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
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A |
C |
Inst. |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
3.75% |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
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A |
C |
Inst. |
Management
Fees |
0.40% |
0.40% |
0.40% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
1.00% |
N/A |
Other
Expenses: |
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Interest
Expense (1) |
0.17% |
0.17% |
0.17% |
Remainder
of Other Expenses |
0.07% |
0.16% |
0.10% |
Total
Other Expenses |
0.24% |
0.33% |
0.27% |
Total
Annual Fund Operating Expenses |
0.89% |
1.73% |
0.67% |
Expense
Reimbursement (2) |
N/A |
N/A |
(0.04)% |
Total
Annual Fund Operating Expenses after Expense Reimbursement |
0.89% |
1.73% |
0.63% |
(1) Includes
interest expense from inverse floaters.
(2) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.46% for Institutional Class shares. It is expected that the expense
limit will continue through the period ending February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limit prior to the end of
the period. Subject to applicable expense limits, the Fund may reimburse PGI for
expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example assumes conversion of the Class
C shares to Class A shares after the eighth year. The Example also assumes that
your investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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1
year |
3
years |
5
years |
10
years |
Class
A |
$462 |
$648 |
$850 |
$1,430 |
Class
C |
276 |
545 |
939 |
1,818 |
Institutional
Class |
64 |
210 |
369 |
831 |
With respect to Class C
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
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1
year |
3
years |
5
years |
10
years |
Class
C |
$176 |
$545 |
$939 |
$1,818 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
31.5% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in California municipal obligations
(securities issued by or on behalf of state or local governments and other
public authorities) at the time of purchase. Generally, these
municipal obligations pay interest that is exempt from state personal income tax
and federal income tax. These obligations may include bonds that generate
interest payments that are subject to the federal individual alternative minimum
tax. The Fund’s investment in municipal obligations include industrial revenue
bonds. The Fund invests up to 20% of its assets 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 Investors Service, Inc. (“Moody’s”) and
BB+ or lower by S&P Global Ratings (“S&P Global”). If the bond has been
rated by only one of the rating agencies, that rating will determine the bond's
rating; if the bond is rated differently by the rating agencies, the highest
rating will be used; and if the bond has not been rated by either of the rating
agencies, those selecting such investments will determine the bond's quality.
The Fund also invests in inverse floating rate obligations (variable rate debt
instruments that pay interest at rates that move in the opposite direction of
prevailing interest rates), which are generally more volatile than other types
of municipal obligations and may involve leverage.
Under normal circumstances, the Fund maintains an average portfolio
duration that is within ±50% of the duration of the Bloomberg California
Municipal Bond Index, which as of January 31, 2024 was 5.26 years. The Fund is
not managed to a particular maturity.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Counterparty
Risk. Counterparty risk is the risk that the counterparty to a contract or
other obligation will be unable or unwilling to honor its
obligations.
Fixed-Income
Securities Risk. Fixed-income securities are subject to interest rate, credit quality,
and liquidity risks. The market value of fixed-income securities generally
declines when interest rates rise, and increased interest rates may adversely
affect the liquidity of certain fixed-income securities. Moreover, an issuer of
fixed-income securities could default on its payment obligations due to
increased interest rates or for other reasons.
Geographic
Concentration Risk. A fund that invests significant portions of its assets in municipal
obligations and bonds in particular geographic areas (a particular state, such
as California, or a particular country or region) has greater exposure than
other funds to economic conditions and developments in those
areas.
High
Yield Securities Risk. High yield fixed-income securities (commonly referred to as “junk
bonds”) are subject to greater credit quality risk than higher rated
fixed-income securities and should be considered speculative.
Industrial
Revenue Bond Risk. The Fund will be sensitive to, and its performance will depend to a
greater extent on, the overall condition and performance of industrial revenue
bonds. These revenue bonds are issued by or on behalf of public authorities to
obtain funds to finance various public and/or privately operated facilities,
including those for business and manufacturing, housing, sports, pollution
control, airport, mass transit, port, and parking facilities. These bonds are
normally secured only by the revenues from the project and not by state or local
government tax payments. Consequently, the credit quality of these bonds is
dependent upon the ability of the user of the facilities financed by the bonds
and any guarantor to meet its financial obligations.
Inverse
Floating Rate Investments Risk. Inverse floating rate investments are extremely sensitive to changes
in interest rates and, in some cases, their market value may be extremely
volatile.
Leverage
Risk. Leverage created by borrowing or certain types of transactions or
investments may impair the fund’s liquidity, cause it to liquidate positions at
an unfavorable time, increase volatility of the fund’s net asset value, or
diminish the fund’s performance.
Municipal
Obligations Risk. Principal and interest payments on municipal securities may not be
guaranteed by the issuing body and may be payable only from a particular source.
That source may not perform as expected, and payment obligations may not be made
or made on time.
Portfolio
Duration Risk. Portfolio duration is a measure of the expected life of a
fixed-income security and its sensitivity to changes in interest rates. The
longer a fund’s average portfolio duration, the more sensitive the fund will be
to changes in interest rates, which means funds with longer average portfolio
durations may be more volatile than those with shorter
durations.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect
sales charges on Class A shares; if they did, results would be
lower. The table shows for the last one, five, and ten calendar
year periods (or, if shorter, the life of the Fund), how the Fund’s average
annual total returns compare with those of one or more broad measures of market
performance.
For
periods prior to the inception date of Institutional Class shares (March 1,
2015), the performance shown in the table for Institutional Class shares is that
of the Fund’s Class A shares, adjusted to reflect the fees and expenses of
Institutional Class shares. However, where the adjustment for fees and expenses
results in performance for Institutional Class shares that is higher than the
historical performance of the Class A shares, the historical performance of
Class A shares is used (without respect to sales charges, which are not
applicable to Institutional Class shares). These adjustments result in
performance for such periods that is no higher than the historical performance
of the Class A shares.
Total Returns as of
December 31
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| |
Highest
return for a quarter during the period of the bar chart
above: |
Q1
2014 |
5.67 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2022 |
(7.07) |
% |
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| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
1.55% |
0.99% |
2.89% |
Class A
Return After Taxes on Distributions |
1.55% |
0.99% |
2.89% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
2.05% |
1.33% |
2.95% |
Class C
Return Before Taxes |
3.75% |
0.95% |
2.58% |
Institutional
Class Return Before Taxes |
5.81% |
2.03% |
3.52% |
Bloomberg
Municipal Bond Index (reflects no deduction for
fees, expenses, or taxes) |
6.40% |
2.25% |
3.03% |
Bloomberg
California Municipal Index (reflects no deduction for
fees, expenses, or taxes) |
6.22% |
2.25% |
3.10% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown for Class A shares only and would be
different for the other share classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Bloomberg Municipal Bond Index in
order to meet the revised definition of “broad-based securities market
index.” The Bloomberg California Municipal
Index is included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
Noble (since 2013), Portfolio Manager
• James
Welch (since 2014), Portfolio Manager
Purchase
and Sale of Fund Shares
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Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A
and C |
Initial
Investment |
$1,000(1) |
A
and C |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A
and C |
Subsequent
Investments |
$100(1)(2) |
Institutional |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Class
C shares are subject to an 8-year automatic conversion plan whereby Class C
shares held for eight years after purchase will automatically convert to Class A
shares of the same Fund. See Purchase of Fund Shares for more
information.
Tax
Information
While
the Fund intends to distribute income that is exempt from regular federal and
California income taxes, a portion of the Fund’s distributions may be subject to
California or federal income taxes or to the federal individual alternative
minimum tax.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
CORE FIXED INCOME
FUND
Objective
The Fund seeks to provide a high level of current income
consistent with preservation of capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$100,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
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| |
|
Share
Class |
|
A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
2.25% |
None |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
None |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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|
Share
Class |
|
A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Management
Fees (1) |
0.33% |
0.33% |
0.33% |
0.33% |
0.33% |
0.33% |
0.33% |
0.33% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
N/A |
Other
Expenses |
0.17% |
0.15% |
0.15% |
0.54% |
0.33% |
0.29% |
0.27% |
0.01% |
Acquired
Fund Fees and Expenses |
0.01% |
0.01% |
0.01% |
0.01% |
0.01% |
0.01% |
0.01% |
0.01% |
Total
Annual Fund Operating Expenses |
0.76% |
0.64% |
0.49% |
1.23% |
0.92% |
0.73% |
0.61% |
0.35% |
Expense
Reimbursement (2) |
N/A |
N/A |
(0.05)% |
N/A |
N/A |
N/A |
N/A |
N/A |
Total
Annual Fund Operating Expenses after Expense Reimbursement |
0.76% |
0.64% |
0.44% |
1.23% |
0.92% |
0.73% |
0.61% |
0.35% |
(1) Fees have
been restated to reflect current
fees.
(2) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.43% for Institutional Class shares. It is expected that the expense
limit will continue through the period ending February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limit prior to the end of
the period. Subject to applicable expense limits, the Fund may reimburse PGI for
expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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| |
| 1
year |
3
years |
5
years |
10
years |
Class
A |
$301 |
$462 |
$638 |
$1,146 |
Class
J |
165 |
205 |
357 |
798 |
Institutional
Class |
45 |
152 |
269 |
611 |
Class
R-1 |
125 |
390 |
676 |
1,489 |
Class
R-3 |
94 |
293 |
509 |
1,131 |
Class
R-4 |
75 |
233 |
406 |
906 |
Class
R-5 |
62 |
195 |
340 |
762 |
Class
R-6 |
36 |
113 |
197 |
443
|
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
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| |
| 1
year |
3
years |
5
years |
10
years |
Class
J |
$65 |
$205 |
$357 |
$798 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
9.9% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in fixed-income securities. The Fund invests
primarily in a diversified pool of investment-grade fixed-income securities,
including corporate securities, U.S. government securities, asset-backed
securities and mortgage-backed securities (securitized products) (including
collateralized mortgage obligations), and foreign securities. Investment grade
securities are rated BBB- or higher by S&P Global Ratings (“S&P Global”)
or Baa3 or higher by Moody’s Investors Service, Inc. (“Moody’s”), at the time of
purchase. If the security has been rated by only one of the rating agencies,
that rating will determine the security’s rating; if the security is rated
differently by the rating agencies, the highest rating is used; and if the
security has not been rated by either of the rating agencies, those selecting
such investments will determine the security’s quality. The Fund is not managed
to a particular maturity. Under normal circumstances, the Fund maintains an
average portfolio duration that is within ±25% of the duration of the Bloomberg
U.S. Aggregate Bond Index, which as of January 31, 2024 was 6.11
years.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Fixed-Income
Securities Risk. Fixed-income securities are subject to interest rate, credit quality,
and liquidity risks. The market value of fixed-income securities generally
declines when interest rates rise, and increased interest rates may adversely
affect the liquidity of certain fixed-income securities. Moreover, an issuer of
fixed-income securities could default on its payment obligations due to
increased interest rates or for other reasons.
Foreign
Securities Risk. The risks of foreign securities include loss of value as a result of:
political or economic instability; nationalization, expropriation, or
confiscatory taxation; settlement delays; and limited government regulation
(including less stringent reporting, accounting, and disclosure standards than
are required of U.S. companies).
Portfolio
Duration Risk. Portfolio duration is a measure of the expected life of a
fixed-income security and its sensitivity to changes in interest rates. The
longer a fund’s average portfolio duration, the more sensitive the fund will be
to changes in interest rates, which means funds with longer average portfolio
durations may be more volatile than those with shorter
durations.
Real
Estate Securities Risk. Investing in real estate securities subjects the fund to the risks
associated with the real estate market (which are similar to the risks
associated with direct ownership in real estate), including declines in real
estate values, loss due to casualty or condemnation, property taxes, interest
rate changes, increased expenses, cash flow of underlying real estate assets,
regulatory changes (including zoning, land use, and rents), and environmental
problems, as well as to the risks related to the management skill and
creditworthiness of the issuer.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Securitized
Products Risk. Investments in securitized products are subject to risks similar to
traditional fixed-income securities, such as credit, interest rate, liquidity,
prepayment, extension, and default risk, as well as additional risks associated
with the nature of the assets and the servicing of those assets. Unscheduled
prepayments on securitized products may have to be reinvested at lower rates. A
reduction in prepayments may increase the effective maturities of these
securities, exposing them to the risk of decline in market value over time
(extension risk).
U.S.
Government Securities Risk. Yields available from U.S. government securities are generally lower
than yields from many other fixed-income securities. The value of U.S.
government securities may be adversely impacted by changes in interest rates,
changes in the credit rating of the U.S. government, or a default by the U.S.
government.
U.S.
Government-Sponsored Securities Risk. Securities issued by U.S. government-sponsored enterprises such as
the Federal Home Loan Mortgage Corporation, the Federal National Mortgage
Association, and the Federal Home Loan Banks are not issued or guaranteed by the
U.S. government.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect
sales charges on Class A shares; if they did, results would be
lower. The table shows for the last one, five, and ten calendar
year periods (or, if shorter, the life of the Fund), how the Fund’s average
annual total returns compare with those of one or more broad measures of market
performance.
For
periods prior to the inception date of Class R-6 shares (November 25, 2014), the
performance shown in the table for Class R-6 shares is that of the Fund’s Class
A shares, adjusted to reflect the fees and expenses of Class R-6 shares.
However, where the adjustment for fees and expenses results in performance for
Class R-6 shares that is higher than the historical performance of the Class A
shares, the historical performance of the Class A shares is used (without
respect to sales charges, which are not applicable to Class R-6 shares). These
adjustments result in performance for such periods that is no higher than the
historical performance of the Class A shares.
Total Returns as of
December 31
|
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| |
Highest
return for a quarter during the period of the bar chart
above: |
Q4
2023 |
6.75 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2022 |
(5.80) |
% |
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| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
3.09% |
0.57% |
1.52% |
Class A
Return After Taxes on Distributions |
1.87% |
(0.42)% |
0.35% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
1.81% |
0.04% |
0.66% |
Class J
Return Before Taxes |
4.56% |
1.16% |
1.86% |
Institutional
Class Return Before Taxes |
5.87% |
1.33% |
2.08% |
Class R-1
Return Before Taxes |
4.91% |
0.53% |
1.26% |
Class R-3
Return Before Taxes |
5.35% |
0.86% |
1.57% |
Class R-4
Return Before Taxes |
5.55% |
1.05% |
1.77% |
Class R-5
Return Before Taxes |
5.57% |
1.15% |
1.88% |
Class R-6
Return Before Taxes |
5.84% |
1.41% |
2.10% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.81% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• John
R. Friedl (since 2005), Portfolio Manager
•Michael
Goosay (since 2023), Portfolio Manager
• Scott
J. Peterson (since 2010), Portfolio Manager
Purchase
and Sale of Fund Shares
|
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| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A
and J |
Initial
Investment |
$1,000(1) |
A
and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A
and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, R-5, and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchases. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances.
See
Purchase of Fund Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
CORE PLUS BOND
FUND
Objective
The Fund seeks to provide current income
and, as a secondary objective, capital
appreciation.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
You may qualify
for sales charge discounts if you and your family invest, or agree to invest in
the future, at least $100,000 in Class A Shares
of Principal Funds, Inc. More information about these and other
discounts is available from your financial intermediary and in “Choosing a Share
Class and The Costs of Investing” beginning on page 426 of the Fund’s
Prospectus, Appendix B to the Prospectus titled “Intermediary-Specific Sales
Charge Waivers and Reductions,” and “Multiple Class Structure” beginning on page
70 of the Fund’s Statement of Additional Information.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
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|
Share
Class |
|
A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
3.75% |
None |
None |
None |
None |
None |
None
|
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
None |
None |
None |
None |
None
|
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees (1) |
0.42% |
0.42% |
0.42% |
0.42% |
0.42% |
0.42% |
0.42% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.32% |
0.32% |
0.17% |
0.54% |
0.33% |
0.29% |
0.27% |
Total
Annual Fund Operating Expenses |
0.99% |
0.89% |
0.59% |
1.31% |
1.00% |
0.81% |
0.69% |
Expense
Reimbursement (2) |
(0.19)% |
N/A
|
(0.11)% |
N/A
|
N/A
|
N/A
|
N/A
|
Total
Annual Fund Operating Expenses after Expense Reimbursement |
0.80% |
0.89% |
0.48% |
1.31% |
1.00% |
0.81% |
0.69% |
(1)
Fees have
been restated to reflect current
fees.
(2) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.80% for Class A and 0.48% for Institutional Class shares. It is
expected that the expense limits will continue through the period ending
February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limits prior to the end
of the period. Subject to applicable expense limits, the Fund may reimburse PGI
for expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
A |
$454 |
$660 |
$884 |
$1,526 |
Class
J |
191 |
284 |
493 |
1,096 |
Institutional
Class |
49 |
178 |
318 |
727 |
Class
R-1 |
133 |
415 |
718 |
1,579 |
Class
R-3 |
102 |
318 |
552 |
1,225 |
Class
R-4 |
83 |
259 |
450 |
1,002 |
Class
R-5 |
70 |
221 |
384 |
859
|
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$91 |
$284 |
$493 |
$1,096 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
156.0% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in bonds or other debt securities at the
time of purchase. Such investments include securities issued or guaranteed by
the U.S. government or its agencies or instrumentalities; asset-backed
securities and mortgage-backed securities (securitized products, including
collateralized mortgage obligations); corporate bonds; and foreign securities,
including emerging market securities. The Fund invests in investment-grade
securities and, with respect to up to 25% of its assets, in
below-investment-grade securities (sometimes called “high yield” or “junk”),
which are rated at the time of purchase Ba1 or lower by Moody’s Investors
Service, Inc. (“Moody’s”) and BB+ or lower by S&P Global Ratings (“S&P
Global”). If the security has been rated by only one of the rating agencies,
that rating will determine the security’s rating; if the security is rated
differently by the rating agencies, the highest rating will be used; and if the
security has not been rated by either of the rating agencies, those selecting
such investments will determine the security’s quality. The Fund is not managed
to a particular maturity. Under normal circumstances, the Fund
maintains an average portfolio duration that is within ±25% of the duration of
the Bloomberg U.S. Aggregate Bond Index, which as of January 31, 2024 was 6.11
years. The Fund’s strategies may result in the active and frequent trading of
the Fund’s portfolio securities.
The
Fund enters into dollar roll transactions, which may involve leverage. The Fund
invests in derivatives, including Treasury futures and interest rate swaps to
manage the fixed-income exposure (including for hedging purposes) and credit
default swaps to increase or decrease, in an efficient manner, exposures to
certain sectors or individual issuers. A derivative is a financial arrangement,
the value of which is derived from, or based on, a traditional security, asset,
or market index.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Counterparty
Risk. Counterparty risk is the risk that the counterparty to a contract or
other obligation will be unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Credit
Default Swaps. Credit default swaps involve special risks in addition to those
associated with swaps generally because they are difficult to value, are highly
susceptible to liquidity and credit risk, and generally pay a return to the
party that has paid the premium only in the event of an actual default by the
issuer of the underlying obligation (as opposed to a credit downgrade or other
indication of financial difficulty). The protection “buyer” in a credit default
contract may be obligated to pay the protection “seller” an up-front payment or
a periodic stream of payments over the term of the contract, provided,
generally, that no credit event on a reference obligation has occurred. If a
credit event occurs, the seller generally must pay the buyer the “par value”
(i.e., full notional value) of the swap in exchange for an equal face amount of
deliverable obligations of the reference entity described in the swap, or the
seller may be required to deliver the related net cash amount, if the swap is
cash settled. The Fund may be either the buyer or seller in the
transaction.
•Futures
and Swaps. These derivative instruments involve
specific risks, including: the imperfect correlation between the change in
market value of the instruments held by the fund and the price of the
instruments; possible lack of a liquid secondary market for an instrument and
the resulting inability to close it when desired; counterparty risk; and if the
fund has insufficient cash, it may have to sell securities from its portfolio to
meet any applicable daily variation margin
requirements.
Emerging
Markets Risk. Investments in emerging markets may have more risk than those in
developed markets because the emerging markets are less developed and more
illiquid. Emerging markets can also be subject to increased social, economic,
regulatory, and political uncertainties and can be extremely volatile. The U.S.
Securities and Exchange Commission, the U.S. Department of Justice, and other
U.S. authorities may be limited in their ability to pursue bad actors in
emerging markets, including with respect to fraud.
Fixed-Income
Securities Risk. Fixed-income securities are subject to interest rate, credit quality,
and liquidity risks. The market value of fixed-income securities generally
declines when interest rates rise, and increased interest rates may adversely
affect the liquidity of certain fixed-income securities. Moreover, an issuer of
fixed-income securities could default on its payment obligations due to
increased interest rates or for other reasons.
Foreign
Currency Risk. Risks of investing in securities denominated in, or that trade in,
foreign (non-U.S.) currencies include changes in foreign exchange rates and
foreign exchange restrictions.
Foreign
Securities Risk. The risks of foreign securities include loss of value as a result of:
political or economic instability; nationalization, expropriation, or
confiscatory taxation; settlement delays; and limited government regulation
(including less stringent reporting, accounting, and disclosure standards than
are required of U.S. companies).
Hedging
Risk. A fund that implements a hedging strategy using derivatives and/or
securities could expose the fund to the risk that can arise when a change in the
value of a hedge does not match a change in the value of the asset it hedges. In
other words, the change in value of the hedge could move in a direction that
does not match the change in value of the underlying asset, resulting in a risk
of loss to the fund.
High
Portfolio Turnover Risk. High portfolio turnover (more than 100%) caused by active and
frequent trading of portfolio securities may result in accelerating the
realization of taxable gains and losses, lower fund performance, and increased
brokerage costs.
High
Yield Securities Risk. High yield fixed-income securities (commonly referred to as “junk
bonds”) are subject to greater credit quality risk than higher rated
fixed-income securities and should be considered speculative.
Leverage
Risk. Leverage created by borrowing or certain types of transactions or
investments may impair the fund’s liquidity, cause it to liquidate positions at
an unfavorable time, increase volatility of the fund’s net asset value, or
diminish the fund’s performance.
Portfolio
Duration Risk. Portfolio duration is a measure of the expected life of a
fixed-income security and its sensitivity to changes in interest rates. The
longer a fund’s average portfolio duration, the more sensitive the fund will be
to changes in interest rates, which means funds with longer average portfolio
durations may be more volatile than those with shorter
durations.
Real
Estate Securities Risk. Investing in real estate securities subjects the fund to the risks
associated with the real estate market (which are similar to the risks
associated with direct ownership in real estate), including declines in real
estate values, loss due to casualty or condemnation, property taxes, interest
rate changes, increased expenses, cash flow of underlying real estate assets,
regulatory changes (including zoning, land use, and rents), and environmental
problems, as well as to the risks related to the management skill and
creditworthiness of the issuer.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Securitized
Products Risk. Investments in securitized products are subject to risks similar to
traditional fixed-income securities, such as credit, interest rate, liquidity,
prepayment, extension, and default risk, as well as additional risks associated
with the nature of the assets and the servicing of those assets. Unscheduled
prepayments on securitized products may have to be reinvested at lower rates. A
reduction in prepayments may increase the effective maturities of these
securities, exposing them to the risk of decline in market value over time
(extension risk).
U.S.
Government Securities Risk. Yields available from U.S. government securities are generally lower
than yields from many other fixed-income securities. The value of U.S.
government securities may be adversely impacted by changes in interest rates,
changes in the credit rating of the U.S. government, or a default by the U.S.
government.
U.S.
Government-Sponsored Securities Risk. Securities issued by U.S. government-sponsored enterprises such as
the Federal Home Loan Mortgage Corporation, the Federal National Mortgage
Association, and the Federal Home Loan Banks are not issued or guaranteed by the
U.S. government.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The bar chart shows the investment returns of the Fund’s Class A
shares for each full calendar year of operations for 10 years (or, if shorter,
the life of the Fund). These annual returns do not reflect
sales charges on Class A shares; if they did, results would be
lower. The table shows for the last one, five, and ten calendar
year periods (or, if shorter, the life of the Fund), how the Fund’s average
annual total returns compare with those of one or more broad measures of market
performance.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q4
2023 |
7.36 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q2
2022 |
(6.07) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
1.19% |
0.50% |
1.23% |
Class A
Return After Taxes on Distributions |
(0.03)% |
(0.93)% |
(0.02)% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
0.69% |
(0.15)% |
0.44% |
Class J
Return Before Taxes |
4.07% |
1.27% |
1.63% |
Institutional Class Return Before
Taxes |
5.40% |
1.59% |
1.97% |
Class R-1
Return Before Taxes |
4.55% |
0.76% |
1.11% |
Class R-3
Return Before Taxes |
4.80% |
1.06% |
1.43% |
Class R-4
Return Before Taxes |
5.08% |
1.26% |
1.62% |
Class R-5
Return Before Taxes |
5.22% |
1.39% |
1.75% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.81% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• William
C. Armstrong (since 2000), Portfolio Manager
• Bryan
C. Davis (since 2022), Portfolio Manager
• Michael
Goosay (since 2023), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A
and J |
Initial
Investment |
$1,000(1) |
A
and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A
and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, and R-5 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
DIVERSIFIED INCOME
FUND
Objective
The
Fund seeks income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$100,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
A |
C |
Inst. |
R-6 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
3.75% |
None |
None |
None
|
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
None |
None
|
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
A |
C |
Inst. |
R-6 |
Management
Fees (1) |
0.65% |
0.65% |
0.65% |
0.65% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
1.00% |
N/A |
N/A |
Other
Expenses |
0.13% |
0.14% |
0.11% |
0.05% |
Acquired
Fund Fees and Expenses |
0.02% |
0.02% |
0.02% |
0.02% |
Total
Annual Fund Operating Expenses |
1.05% |
1.81% |
0.78% |
0.72% |
Expense
Reimbursement
(2) |
N/A
|
N/A
|
(0.08)% |
(0.03)% |
Total
Annual Fund Operating Expenses after Expense Reimbursement |
1.05% |
1.81% |
0.70% |
0.69% |
(1) Fees have
been restated to reflect current
fees.
(2) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.68% for Institutional Class shares. In addition, for Class R-6, the
expense limit will maintain "Other Expenses" (expressed as a percent of average
net assets on an annualized basis) not to exceed 0.02%, (excluding interest
expense, expenses related to fund investments, acquired fund fees and expenses,
and tax reclaim recovery expenses and other extraordinary expenses). It is
expected that the expense limits will continue through the period ending
February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limits prior to the end
of the period. Subject to applicable expense limits, the Fund may reimburse PGI
for expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example assumes conversion of the Class
C shares to Class A shares after the eighth year. The Example also assumes that
your investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
A |
$478 |
$697 |
$933 |
$1,609 |
Class
C |
284 |
569 |
980 |
1,927 |
Institutional
Class |
72 |
241 |
425 |
959 |
Class
R-6 |
70 |
227 |
398 |
892 |
With respect to Class C
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
C |
$184 |
$569 |
$980 |
$1,927 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
75.1% of the average
value of its portfolio.
Principal Investment
Strategies
The
Fund generally invests a majority of its assets in fixed-income securities, such
as investment-grade corporate bonds, high yield bonds (also known as “junk”
bonds), preferred securities, securitized products, and emerging market debt
securities, in an effort to provide incremental yields over a portfolio of
government securities. Such securities include instruments with variable or
floating interest rates. The fixed-income portion of the Fund is not managed to
a particular maturity or duration. The Fund invests in foreign, including
emerging market, securities. The Fund uses derivative strategies. A derivative
is a financial arrangement, the value of which is derived from, or based on, a
traditional security, asset, or market index.
In
managing the Fund, Principal Global Investors, LLC (“PGI”), the Fund’s
investment advisor, determines the Fund's strategic asset allocation among
actively managed and passively managed (index) strategies that are executed by
PGI and multiple sub-advisors. PGI has considerable latitude in allocating the
Fund's assets among the general investment categories listed below. The Fund
uses strategies and sub-advisors to varying degrees and may change allocations,
add new or eliminate existing strategies and sub-advisors, and temporarily or
permanently reduce allocations from time to time such that the Fund would have
little or no assets allocated to a particular strategy or
sub-advisor.
•Investment-grade
corporate securities, which are rated at the time of purchase Baa3 or higher by
Moody’s Investors Service (“Moody’s”) or BBB- or higher by S&P Global
Ratings (“S&P Global”).
•High
yield and other income-producing securities, including bank loans and corporate
bonds. “High yield” securities are below investment grade securities (sometimes
called “junk”), which are rated at the time of purchase Ba1 or lower by Moody's
and BB+ or lower by S&P Global. These securities offer a higher yield than
other, higher rated securities, but they carry a greater degree of risk and are
considered speculative with respect to the issuer's ability to pay interest and
to repay principal. This portion of the Fund also invests in currency forwards
and currency options to hedge currency risk.
•Preferred
securities, focusing primarily on the financial services and utility
industries.
•Diversified
portfolio of fixed-income securities, including those issued by governments and
their agencies and corporate entities in emerging markets. This portion of the
Fund also invests in interest rate swaps or Treasury futures to manage
fixed-income exposure; credit default swaps to increase or decrease in an
efficient manner exposures to certain sectors or individual issuers; total
return swaps to increase or decrease in an efficient manner exposures to certain
sectors; and currency forwards and currency options to hedge currency risk and
express views on the direction of currency.
•Securitized
products such as asset-backed securities and mortgage-backed securities,
including commercial mortgage-backed securities, which are bonds secured by
first mortgages on commercial real estate.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Asset
Allocation Risk. A
fund’s selection and weighting of asset classes and allocation among
sub-advisors may cause it to underperform other funds with a similar investment
objective.
Bank
Loans Risk. Changes in economic conditions are likely to cause issuers of bank
loans (also known as senior floating rate interests) to be unable to meet their
obligations. In addition, the value of the collateral securing the loan (if any)
may decline, causing a loan to be substantially unsecured. Underlying credit
agreements governing the bank loans, reliance on market makers, priority of
repayment, and overall market volatility may harm the liquidity of
loans.
Counterparty
Risk. Counterparty risk is the risk that the counterparty to a contract or
other obligation will be unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Credit
Default Swaps. Credit default swaps involve special risks in addition to those
associated with swaps generally because they are difficult to value, are highly
susceptible to liquidity and credit risk, and generally pay a return to the
party that has paid the premium only in the event of an actual default by the
issuer of the underlying obligation (as opposed to a credit downgrade or other
indication of financial difficulty). The protection “buyer” in a credit default
contract may be obligated to pay the protection “seller” an up-front payment or
a periodic stream of payments over the term of the contract, provided,
generally, that no credit event on a reference obligation has occurred. If a
credit event occurs, the seller generally must pay the buyer the “par value”
(i.e., full notional value) of the swap in exchange for an equal face amount of
deliverable obligations of the reference entity described in the swap, or the
seller may be required to deliver the related net cash amount, if the swap is
cash settled. The Fund may be either the buyer or seller in the
transaction.
•Currency
Contracts. Derivatives related to currency contracts involve the specific risk
of government action through exchange controls that would restrict the ability
of the fund to deliver or receive currency.
•Forward
Contracts, Futures, and Swaps. Forward contracts, futures, and swaps involve specific risks,
including: the imperfect correlation between the change in market value of the
instruments held by the fund and the price of the forward contract, future, or
swap; possible lack of a liquid secondary market for a forward contract, future,
or swap and the resulting inability to close a forward contract, future, or swap
when desired; counterparty risk; and if the fund has insufficient cash, it may
have to sell securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options involve specific risks,
including: the imperfect correlation between the change in market value of the
instruments held by the Fund and the price of the options; counterparty risk;
difference in trading hours for the options markets and the markets for the
underlying securities (rate movements can take place in the underlying markets
that cannot be reflected in the options markets); and an insufficient liquid
secondary market for particular options.
Emerging
Markets Risk. Investments in emerging markets may have more risk than those in
developed markets because the emerging markets are less developed and more
illiquid. Emerging markets can also be subject to increased social, economic,
regulatory, and political uncertainties and can be extremely volatile. The U.S.
Securities and Exchange Commission, the U.S. Department of Justice, and other
U.S. authorities may be limited in their ability to pursue bad actors in
emerging markets, including with respect to fraud.
Fixed-Income
Securities Risk. Fixed-income securities are subject to interest rate, credit quality,
and liquidity risks. The market value of fixed-income securities generally
declines when interest rates rise, and increased interest rates may adversely
affect the liquidity of certain fixed-income securities. Moreover, an issuer of
fixed-income securities could default on its payment obligations due to
increased interest rates or for other reasons.
Floating
and Variable Rate Securities Risk. The market prices of securities with variable and floating interest
rates are generally less sensitive to interest rate changes than are the market
prices of securities of fixed interest rates. Floating and variable rate
securities may decline in value if market interest rates or interest rates paid
by them do not move as expected. Floating and variable rate securities may be
subject to greater liquidity risk than other debt securities, meaning that there
may be limitations on the Fund’s ability to sell the securities at any given
time.
Foreign
Currency Risk. Risks of investing in securities denominated in, or that trade in,
foreign (non-U.S.) currencies include changes in foreign exchange rates and
foreign exchange restrictions.
Foreign
Securities Risk. The risks of foreign securities include loss of value as a result of:
political or economic instability; nationalization, expropriation, or
confiscatory taxation; settlement delays; and limited government regulation
(including less stringent reporting, accounting, and disclosure standards than
are required of U.S. companies).
Hedging
Risk. A fund that implements a hedging strategy using derivatives and/or
securities could expose the fund to the risk that can arise when a change in the
value of a hedge does not match a change in the value of the asset it hedges. In
other words, the change in value of the hedge could move in a direction that
does not match the change in value of the underlying asset, resulting in a risk
of loss to the fund.
High
Yield Securities Risk. High yield fixed-income securities (commonly referred to as “junk
bonds”) are subject to greater credit quality risk than higher rated
fixed-income securities and should be considered speculative.
Index
(Passive) Strategy Risk. An index (passive) fund (or passive strategy that is part of a fund)
has operating and other expenses while an index does not. As a result, over
time, index funds tend to underperform the index. The correlation between an
index strategy’s performance and index performance may also be affected by the
type of passive investment approach used (sampling or replication), changes in
securities markets, changes in the composition of the index, and the timing of
purchases and sales of shares.
Portfolio
Duration Risk. Portfolio duration is a measure of the expected life of a
fixed-income security and its sensitivity to changes in interest rates. The
longer a fund’s average portfolio duration, the more sensitive the fund will be
to changes in interest rates, which means funds with longer average portfolio
durations may be more volatile than those with shorter
durations.
Preferred
Securities Risk. Because preferred securities have a lower priority claim on assets or
earnings than senior bonds and other debt instruments in a company’s capital
structure, they are subject to greater credit and liquidation risk than more
senior debt instruments. In addition, preferred securities are subject to other
risks, such as limited or no voting rights, deferring or skipping distributions,
interest rate risk, and redeeming the security prior to any stated maturity
date.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Securitized
Products Risk. Investments in securitized products are subject to risks similar to
traditional fixed-income securities, such as credit, interest rate, liquidity,
prepayment, extension, and default risk, as well as additional risks associated
with the nature of the assets and the servicing of those assets. Unscheduled
prepayments on securitized products may have to be reinvested at lower rates. A
reduction in prepayments may increase the effective maturities of these
securities, exposing them to the risk of decline in market value over time
(extension risk).
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect
sales charges on Class A shares; if they did, results would be
lower. The table shows for the last one, five, and ten calendar
year periods (or, if shorter, the life of the Fund), how the Fund’s average
annual total returns compare with those of one or more broad measures of market
performance.
For
periods prior to the inception date of Class R-6 shares (June 12, 2017), the
performance shown in the table for Class R-6 shares is that of the Fund’s
Institutional Class shares, adjusted to reflect the fees and expenses of Class
R-6 shares. These adjustments result in performance for such periods that is no
higher than the historical performance of the Institutional Class
shares.
Total Returns as of
December 31
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| |
Highest
return for a quarter during the period of the bar chart
above: |
Q4
2020 |
8.39 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(17.02) |
% |
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| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
4.20% |
2.82% |
3.03% |
Class A
Return After Taxes on Distributions |
1.77% |
0.96% |
1.10% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
2.57% |
1.44% |
1.54% |
Class C
Return Before Taxes |
6.40% |
2.82% |
2.80% |
Institutional Class Return Before
Taxes |
8.52% |
3.95% |
3.75% |
Class R-6
Return Before Taxes |
8.63% |
3.98% |
3.76% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.81% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
•Jessica
S. Bush (since 2014), Portfolio Manager
•Benjamin
E. Rotenberg (since 2014), Portfolio Manager
•May
Tong (since 2021), Portfolio Manager
Sub-Advisors
BlackRock
Financial Management, Inc.
Grantham,
Mayo, Van Otterloo & Co. LLC
Nuveen
Asset Management LLC
PineBridge
Investments LLC
Polen
Capital Credit, LLC
Post
Advisory Group, LLC
Principal
Real Estate Investors, LLC
Spectrum
Asset Management, Inc.
Sub-Sub-Advisor
BlackRock
International Limited
Purchase
and Sale of Fund Shares
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Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A
and C |
Initial
Investment |
$1,000(1) |
A
and C |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A
and C |
Subsequent
Investments |
$100(1)(2) |
Institutional
and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Class
C shares are subject to an 8-year automatic conversion plan whereby Class C
shares held for eight years after purchase will automatically convert to Class A
shares of the same Fund. See Purchase of Fund Shares for more
information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
DIVERSIFIED
INTERNATIONAL FUND
Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$50,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
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|
Share
Class |
|
A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.50% |
None |
None |
None |
None |
None |
None |
None
|
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
None |
None |
None |
None |
None |
None
|
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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|
Share
Class |
|
A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Management
Fees |
0.74% |
0.74% |
0.74% |
0.74% |
0.74% |
0.74% |
0.74% |
0.74% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
N/A |
Other
Expenses (1) |
0.30% |
0.30% |
0.19% |
0.58% |
0.37% |
0.33% |
0.31% |
0.05% |
Total
Annual Fund Operating Expenses |
1.29% |
1.19% |
0.93% |
1.67% |
1.36% |
1.17% |
1.05% |
0.79% |
Expense
Reimbursement
(2) |
N/A |
N/A |
(0.05)% |
N/A |
N/A |
N/A |
N/A |
N/A |
Total
Annual Fund Operating Expenses after Expense Reimbursement |
1.29% |
1.19% |
0.88% |
1.67% |
1.36% |
1.17% |
1.05% |
0.79% |
(1) Includes 0.03% of
expenses associated with the reclaim of foreign taxes paid. The expense is not
subject to the contractual expense limit.
(2) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.85% for Institutional Class shares. It is expected that the expense
limit will continue through the period ending February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limit prior to the end of
the period. Subject to applicable expense limits, the Fund may reimburse PGI for
expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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|
1
year |
3
years |
5
years |
10
years |
Class
A |
$674 |
$936 |
$1,219 |
$2,021 |
Class
J |
221 |
378 |
654 |
1,443 |
Institutional
Class |
90 |
291 |
510 |
1,138 |
Class
R-1 |
170 |
526 |
907 |
1,976 |
Class
R-3 |
138 |
431 |
745 |
1,635 |
Class
R-4 |
119 |
372 |
644 |
1,420 |
Class
R-5 |
107 |
334 |
579 |
1,283 |
Class
R-6 |
81 |
252 |
439 |
978
|
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
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| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$121 |
$378 |
$654 |
$1,443 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
42.2% of the average
value of its portfolio.
Principal Investment
Strategies
The
Fund invests primarily in foreign equity securities. The Fund has no limitation
on the percentage of assets that are invested in any one country or denominated
in any one currency, but the Fund typically invests in foreign securities of at
least 20 countries. Primary consideration is given to securities of issuers of
developed areas (for example, Japan, Western Europe, Canada, Australia, Hong
Kong, and Singapore); however, the Fund also invests in emerging market
securities. The Fund invests in equity securities regardless of market
capitalization size (small, medium, or large) and style (growth or
value).
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Emerging
Markets Risk. Investments
in emerging markets may have more risk than those in developed markets because
the emerging markets are less developed and more illiquid. Emerging markets can
also be subject to increased social, economic, regulatory, and political
uncertainties and can be extremely volatile. The U.S. Securities and Exchange
Commission, the U.S. Department of Justice, and other U.S. authorities may be
limited in their ability to pursue bad actors in emerging markets, including
with respect to fraud.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk. Growth investing entails the risk that if growth companies do not
increase their earnings at a rate expected by investors, the market price of
their stock may decline significantly, even if earnings show an absolute
increase. Growth company stocks also typically lack the dividend yield that can
lessen price declines in market downturns.
•Smaller
Companies Risk. Investments in smaller companies may involve greater risk and price
volatility than investments in larger, more mature companies. Smaller companies
may have limited product lines, markets, or financial resources; lack the
competitive strength of larger companies; have less experienced managers; or
depend on a few key employees. Their securities often are less widely held and
trade less frequently and in lesser quantities, and their market prices often
fluctuate more, than securities of larger companies.
•Value
Style Risk. Value investing entails the risk that
value stocks may continue to be undervalued by the market for extended periods,
including the entire period during which the stock is held by a fund, or the
events that would cause the stock price to increase may not occur as anticipated
or at all. Moreover, a stock that appears to be undervalued actually may be
appropriately priced at a low level and, therefore, would not be profitable for
the fund.
Foreign
Currency Risk. Risks of investing in securities denominated in, or that trade in,
foreign (non-U.S.) currencies include changes in foreign exchange rates and
foreign exchange restrictions.
Foreign
Securities Risk. The risks of foreign securities include loss of value as a result
of: political or economic instability; nationalization, expropriation, or
confiscatory taxation; settlement delays; and limited government regulation
(including less stringent reporting, accounting, and disclosure standards than
are required of U.S. companies).
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect
sales charges on Class A shares; if they did, results would be
lower. The table shows for the last one, five, and ten calendar
year periods (or, if shorter, the life of the Fund), how the Fund’s average
annual total returns compare with those of one or more broad measures of market
performance.
For
periods prior to the inception date of Class R-6 shares (March 1, 2019), the
performance shown in the table for Class R-6 shares is that of the Fund’s Class
R-3 shares, adjusted to reflect the fees and expenses of Class R-6 shares.
However, where the adjustment for fees and expenses results in performance for
Class R-6 shares that is higher than the historical performance of the Class R-3
shares, the historical performance of the Class R-3 shares is used. These
adjustments result in performance for such periods that is no higher than the
historical performance of the Class R-3 shares.
Total Returns as of
December 31
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| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
17.41 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(22.11) |
% |
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| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
10.72% |
6.69% |
3.36% |
Class A
Return After Taxes on Distributions |
10.07% |
5.81% |
2.76% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
6.65% |
5.27% |
2.68% |
Class J
Return Before Taxes |
16.33% |
8.02% |
4.07% |
Institutional Class Return Before
Taxes |
17.68% |
8.32% |
4.39% |
Class R-1
Return Before Taxes |
16.80% |
7.47% |
3.53% |
Class R-3
Return Before Taxes |
17.19% |
7.80% |
3.86% |
Class R-4
Return Before Taxes |
17.37% |
8.02% |
4.06% |
Class R-5
Return Before Taxes |
17.52% |
8.14% |
4.18% |
Class R-6
Return Before Taxes |
17.79% |
8.41% |
4.15% |
MSCI ACWI
Ex USA Index NTR (reflects withholding taxes
on foreign dividends, but no deduction for fees, expenses, or other
taxes) |
15.62% |
7.08% |
3.83% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• Paul
H. Blankenhagen (since 2003), Portfolio Manager
• Juliet
Cohn (since 2004), Portfolio Manager
• George
Maris (since 2023), Portfolio Manager
Purchase
and Sale of Fund Shares
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Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A
and J |
Initial
Investment |
$1,000(1) |
A
and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A
and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, R-5, and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchases. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
EQUITY INCOME
FUND
Objective
The Fund seeks to provide current income and long-term growth of
income and capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$50,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
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A |
C |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.50% |
None |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
1.00% |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
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A |
C |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.50% |
0.50% |
0.50% |
0.50% |
0.50% |
0.50% |
0.50% |
0.50% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
1.00% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.12% |
0.15% |
0.16% |
0.04% |
0.54% |
0.33% |
0.29% |
0.27% |
Total
Annual Fund Operating Expenses |
0.87% |
1.65% |
0.81% |
0.54% |
1.39% |
1.08% |
0.89% |
0.77% |
Expense
Reimbursement (1) |
N/A |
N/A |
N/A |
(0.02)% |
N/A |
N/A |
N/A |
N/A |
Total
Annual Fund Operating Expenses after Expense Reimbursement |
0.87% |
1.65% |
0.81% |
0.52% |
1.39% |
1.08% |
0.89% |
0.77% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.52% for Institutional Class shares. It is expected that the expense
limit will continue through the period ending February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limit prior to the end of
the period. Subject to applicable expense limits, the Fund may reimburse PGI for
expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example assumes conversion of the Class
C shares to Class A shares after the eighth year. The Example also assumes that
your investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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1
year |
3
years |
5
years |
10
years |
Class
A |
$634 |
$812 |
$1,006 |
$1,564 |
Class
C |
268 |
520 |
897 |
1,746 |
Class
J |
183 |
259 |
450 |
1,002 |
Institutional
Class |
53 |
171 |
300 |
675 |
Class
R-1 |
142 |
440 |
761 |
1,669 |
Class
R-3 |
110 |
343 |
595 |
1,317 |
Class
R-4 |
91 |
284 |
493 |
1,096 |
Class
R-5 |
79 |
246 |
428 |
954
|
With respect to Class C and J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
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1
year |
3
years |
5
years |
10
years |
Class
C |
$168 |
$520 |
$897 |
$1,746 |
Class
J |
83 |
259 |
450 |
1,002 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
13.3% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in dividend-paying equity securities at the
time of purchase. The Fund usually invests in equity securities
of companies with large and medium market capitalizations. The Fund invests in
value equity securities, an investment strategy that emphasizes buying equity
securities that appear to be undervalued. The Fund also invests in securities of
foreign issuers.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Smaller
Companies Risk. Investments in smaller companies may involve greater risk and price
volatility than investments in larger, more mature companies. Smaller companies
may have limited product lines, markets, or financial resources; lack the
competitive strength of larger companies; have less experienced managers; or
depend on a few key employees. Their securities often are less widely held and
trade less frequently and in lesser quantities, and their market prices often
fluctuate more, than securities of larger companies.
•Value
Style Risk. Value investing entails the risk that
value stocks may continue to be undervalued by the market for extended periods,
including the entire period during which the stock is held by a fund, or the
events that would cause the stock price to increase may not occur as anticipated
or at all. Moreover, a stock that appears to be undervalued actually may be
appropriately priced at a low level and, therefore, would not be profitable for
the fund.
Foreign
Securities Risk. The risks of foreign securities include loss of value as a result
of: political or economic instability; nationalization, expropriation, or
confiscatory taxation; settlement delays; and limited government regulation
(including less stringent reporting, accounting, and disclosure standards than
are required of U.S. companies).
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect
sales charges on Class A shares; if they did, results would be
lower. The table shows for the last one, five, and ten calendar
year periods (or, if shorter, the life of the Fund), how the Fund’s average
annual total returns compare with those of one or more broad measures of market
performance.
For
periods prior to the inception date of Class J shares (October 9, 2018), the
performance shown in the table for Class J shares is that of the Fund’s Class A
shares, adjusted to reflect the fees and expenses of Class J shares. However,
where the adjustment for fees and expenses results in performance for Class J
shares that is higher than the historical performance of the Class A shares, the
historical performance of the Class A shares is used without respect to sales
charges. These adjustments result in performance for such periods that is no
higher than the historical performance of Class A
shares.
Total Returns as of
December 31
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Highest
return for a quarter during the period of the bar chart
above: |
Q4
2020 |
15.59 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(25.44) |
% |
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Average
Annual Total Returns
For
the periods ended December 31, 2023 |
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1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
4.67% |
9.18% |
8.15% |
Class A
Return After Taxes on Distributions |
4.00% |
8.19% |
7.12% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
3.19% |
7.16% |
6.41% |
Class C
Return Before Taxes |
8.89% |
9.58% |
8.12% |
Class J
Return Before Taxes |
9.85% |
10.50% |
8.80% |
Institutional Class Return Before
Taxes |
11.11% |
10.81% |
9.16% |
Class R-1
Return Before Taxes |
10.17% |
9.86% |
8.22% |
Class R-3
Return Before Taxes |
10.52% |
10.20% |
8.56% |
Class R-4
Return Before Taxes |
10.73% |
10.41% |
8.76% |
Class R-5
Return Before Taxes |
10.85% |
10.54% |
8.89% |
Russell
1000 Index (reflects no deduction for
fees, expenses, or taxes) |
26.53% |
15.52% |
11.80% |
Russell
1000 Value Index (reflects no deduction for
fees, expenses, or taxes) |
11.46% |
10.91% |
8.40% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Russell 1000 Index in order to meet
the revised definition of “broad-based securities market index.”
The Russell 1000 Value Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment
objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• Daniel
R. Coleman (since 2010), Portfolio Manager
• Sarah
E. Radecki (since 2021), Portfolio Manager
• Nedret
Vidinli (since 2017), Associate Portfolio Manager
Purchase
and Sale of Fund Shares
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Share
Class |
Investment
Type |
Purchase
Minimum
Per
Fund |
A,
C, and J |
Initial
Investment |
$1,000(1) |
A,
C, and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A,
C, and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, and R-5 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances.
Class
C shares are subject to an 8-year automatic conversion plan whereby Class C
shares held for eight years after purchase will automatically convert to Class A
shares of the same Fund.
See
Purchase of Fund Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
FINISTERRE EMERGING
MARKETS TOTAL RETURN BOND FUND
Objective
The Fund seeks to generate total returns from current income and
capital appreciation.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment): None
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
|
Inst. |
Management
Fees |
0.75% |
Distribution
and/or Service (12b-1) Fees |
N/A |
Other
Expenses |
0.14% |
Acquired
Fund Fees and Expenses |
0.02% |
Total
Annual Fund Operating Expenses |
0.91% |
Expense
Reimbursement
(1) |
(0.04)% |
Total
Annual Fund Operating Expenses after Expense Reimbursement |
0.87% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.85% for Institutional Class shares. It is expected that the expense
limit will continue through the period ending February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limit prior to the end of
the period. Subject to applicable expense limits, the Fund may reimburse PGI for
expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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1
year |
3
years |
5
years |
10
years |
Institutional
Class |
$89 |
$286 |
$500 |
$1,116 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
139.8% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in bonds and other fixed-income securities
that are tied economically to an emerging market, and in derivatives on such
investments. The types of fixed-income securities in which the
Fund invests include convertible bonds, credit- and index-linked securities,
non-registered and restricted securities (including those issued in reliance on
Rule 144A and Regulation S), securities issued by distressed or bankrupt
issuers, and securities issued by the U.S government or U.S.
government-sponsored enterprises. The Fund’s strategies may result in the active
and frequent trading of the Fund’s portfolio securities.
The
Fund considers a security to be tied economically to an emerging market if one
or more of the following criteria is present: (i) the issuer or guarantor of the
security has its principal place of business or principal office in an emerging
market; (ii) the principal trading market for the security is in an emerging
market; (iv) the issuer or guarantor of the security derives a majority of its
revenue from emerging markets; or (iv) the currency of settlement of the
security is the currency of an emerging market. Emerging markets include
frontier markets.
The
Fund uses derivatives to enhance return and to hedge and manage investment
risks. A derivative is a financial arrangement, the value of which is derived
from, or based on, a traditional security, asset, or market index. Specifically,
the Fund uses forward contracts, futures, options, and swaps. The Fund invests
in cash and cash equivalents to support certain of these investments, as well as
for other purposes.
The
Fund’s investment process focuses primarily on market level analysis of global
markets and political developments and their impact on individual countries and
companies in emerging markets. The Fund uses a top-down portfolio construction
process, blending both fundamental and technical considerations. The investment
strategy provides considerable flexibility to invest in various asset classes,
capital structures, maturities, and currencies.
The
Fund invests, without limitation, in high yield securities (also known as
“junk”) rated at the time of purchase Ba1 or lower by Moody’s Investors
Services, Inc., and BB+ or lower by S&P Global Ratings (“S&P Global”).
If the security has been rated by only one of the rating agencies, that rating
will determine the security’s rating; if the security is rated differently by
the rating agencies, the highest rating will be used; and if the security has
not been rated by either of the rating agencies, those selecting such
investments will determine the security’s quality. The Fund’s holdings range in
maturity from overnight to 30 years or more and are not subject to any minimum
credit rating standard.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Convertible
Securities Risk. Convertible securities are securities that are convertible into
common stock. Convertible securities are subject to credit and interest rate
risks associated with fixed-income securities and to stock market risk
associated with equity securities.
Counterparty
Risk. Counterparty risk is the risk that the counterparty to a contract or
other obligation will be unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Currency
Contracts. Derivatives related to currency contracts involve the specific risk
of government action through exchange controls that would restrict the ability
of the fund to deliver or receive currency.
•Forward
Contracts, Futures, and Swaps. Forward contracts, futures, and swaps involve specific risks,
including: the imperfect correlation between the change in market value of the
instruments held by the fund and the price of the forward contract, future, or
swap; possible lack of a liquid secondary market for a forward contract, future,
or swap and the resulting inability to close a forward contract, future, or swap
when desired; counterparty risk; and if the fund has insufficient cash, it may
have to sell securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options involve specific risks,
including: the imperfect correlation between the change in market value of the
instruments held by the Fund and the price of the options; counterparty risk;
difference in trading hours for the options markets and the markets for the
underlying securities (rate movements can take place in the underlying markets
that cannot be reflected in the options markets); and an insufficient liquid
secondary market for particular options.
Distressed
Investments Risk. A fund’s investment in instruments involving loans, loan
participations, bonds, notes, non-performing and sub-performing mortgage loans,
many of which are not publicly traded, may involve a substantial degree of risk
for the following reasons. These instruments may become illiquid and the prices
of such instruments may be extremely volatile. Valuing such instruments may be
difficult and a fund may lose all of its investment, or it may be required to
accept cash or securities with a value less than the fund’s original investment.
Issuers of distressed securities are typically in a weak financial condition and
may default, in which case the fund may lose its entire
investment.
Emerging
Markets Risk. Investments
in emerging markets may have more risk than those in developed markets because
the emerging markets are less developed and more illiquid. Emerging markets can
also be subject to increased social, economic, regulatory, and political
uncertainties and can be extremely volatile. The U.S. Securities and Exchange
Commission, the U.S. Department of Justice, and other U.S. authorities may be
limited in their ability to pursue bad actors in emerging markets, including
with respect to fraud.
•Defensive
Strategy Risk. Because emerging market debt markets are particularly susceptible to
adverse market, economic, political, and other conditions, the Fund is more
prone to take a defensive position and invest a significant portion of its
assets in cash and cash equivalents in response to abnormal market conditions.
In taking a large cash position, the Fund’s performance may be adversely
affected as the Fund may not be able to benefit from an upswing in the market.
Further, the Fund may be unable to pursue or achieve its investment objective
when employing such a defensive strategy.
•Frontier
Markets Risk. Frontier markets are emerging markets,
but generally have small economies or less mature capital markets than more
developed emerging markets, and, as a result, the risks of investing in emerging
markets are magnified in frontier markets. Frontier markets typically have low
trading volumes and the potential for extreme price volatility and
illiquidity.
Fixed-Income
Securities Risk. Fixed-income securities are subject to interest rate, credit
quality, and liquidity risks. The market value of fixed-income securities
generally declines when interest rates rise, and increased interest rates may
adversely affect the liquidity of certain fixed-income securities. Moreover, an
issuer of fixed-income securities could default on its payment obligations due
to increased interest rates or for other reasons.
Foreign
Currency Risk. Risks of investing in securities denominated in, or that trade in,
foreign (non-U.S.) currencies include changes in foreign exchange rates and
foreign exchange restrictions.
Foreign
Securities Risk. The risks of foreign securities include loss of value as a result
of: political or economic instability; nationalization, expropriation, or
confiscatory taxation; settlement delays; and limited government regulation
(including less stringent reporting, accounting, and disclosure standards than
are required of U.S. companies).
Hedging
Risk. A fund that implements a hedging strategy using derivatives and/or
securities could expose the fund to the risk that can arise when a change in the
value of a hedge does not match a change in the value of the asset it hedges. In
other words, the change in value of the hedge could move in a direction that
does not match the change in value of the underlying asset, resulting in a risk
of loss to the fund.
High
Portfolio Turnover Risk. High portfolio turnover (more than 100%) caused by active and
frequent trading of portfolio securities may result in accelerating the
realization of taxable gains and losses, lower fund performance, and increased
brokerage costs.
High
Yield Securities Risk. High yield fixed-income securities (commonly referred to as “junk
bonds”) are subject to greater credit quality risk than higher rated
fixed-income securities and should be considered speculative.
Leverage
Risk. Leverage created by borrowing or certain types of transactions or
investments may impair the fund’s liquidity, cause it to liquidate positions at
an unfavorable time, increase volatility of the fund’s net asset value, or
diminish the fund’s performance.
Portfolio
Duration Risk. Portfolio duration is a measure of the expected life of a
fixed-income security and its sensitivity to changes in interest rates. The
longer a fund’s average portfolio duration, the more sensitive the fund will be
to changes in interest rates, which means funds with longer average portfolio
durations may be more volatile than those with shorter
durations.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
U.S.
Government Securities Risk. Yields available from U.S. government securities are generally lower
than yields from many other fixed-income securities. The value of U.S.
government securities may be adversely impacted by changes in interest rates,
changes in the credit rating of the U.S. government, or a default by the U.S.
government.
U.S.
Government-Sponsored Securities Risk. Securities issued by U.S. government-sponsored enterprises such as
the Federal Home Loan Mortgage Corporation, the Federal National Mortgage
Association, and the Federal Home Loan Banks are not issued or guaranteed by the
U.S. government.
Volatility
Mitigation Risk. Volatility mitigation strategies may increase the Fund’s transaction
costs, which could increase losses or reduce gains. These strategies may not
protect the Fund from market declines and may reduce the Fund’s participation in
market gains.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s shares for each full
calendar year of operations for 10 years (or, if shorter, the life of the Fund).
The table shows for the last one, five, and ten calendar year periods (or, if
shorter, the life of the Fund), how the Fund’s average annual total returns
compare with those of one or more broad measures of market
performance.
Life
of Fund returns are measured from the date the Fund’s shares were first sold
(July 11, 2016).
Total Returns as of
December 31
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Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
9.76 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q2
2022 |
(11.00) |
% |
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Average
Annual Total Returns
For
the periods ended December 31, 2023 |
| 1
Year |
5
Years |
Life
of Fund |
Institutional Class Return Before
Taxes |
11.20% |
3.90% |
4.05% |
Institutional Class Return After Taxes
on Distributions |
8.34% |
1.71% |
1.75% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
6.62% |
2.08% |
2.12% |
Bloomberg
Global Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.72% |
(0.32)% |
(0.39)% |
Finisterre
Emerging Markets Total Return Bond Blended Index (reflects no deduction for
fees, expenses, or taxes) |
10.99% |
2.05% |
2.06% |
JPM GBI-EM
Global Diversified Index (reflects no deduction for
fees, expenses, or taxes) |
12.70% |
1.14% |
1.34% |
JPM EMBI
Global Diversified Index (reflects no deduction for
fees, expenses, or taxes) |
11.09% |
1.67% |
1.62% |
JPM CEMBI
Broad Diversified Index (reflects no deduction for
fees, expenses, or taxes) |
9.08% |
3.19% |
3.05% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Bloomberg Global Aggregate Bond
Index in order to meet the revised definition of “broad-based securities market
index.” The Finisterre Emerging Markets Total
Return Bond Blended Index is included as an additional index for the Fund as it
shows how the Fund’s performance compares with the returns of an index of funds
with similar investment objectives. Performance of each component of the blended
index is also shown. The weightings for the Finisterre Emerging Markets Total
Return Bond Blended Index are: 33.33% JPM GBI-EM Global Diversified Index;
33.33% JPM EMBI Global Diversified Index; and 33.33% JPM CEMBI Broad Diversified
Index.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
•Damien
Buchet (since 2016), Portfolio Manager
•Christopher
Watson (since 2016), Portfolio Manager
Purchase
and Sale of Fund Shares
For
Institutional Class shares, there are no minimum initial or subsequent
investment requirements for eligible purchasers.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
GLOBAL EMERGING MARKETS
FUND
Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$50,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
|
A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.50% |
None |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
None |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
|
A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Management
Fees
(1) |
0.99% |
0.99% |
0.99% |
0.99% |
0.99% |
0.99% |
0.99% |
0.99% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
N/A |
Other
Expenses |
0.46% |
0.44% |
0.32% |
0.62% |
0.41% |
0.37% |
0.35% |
0.45% |
Total
Annual Fund Operating Expenses |
1.70% |
1.58% |
1.31% |
1.96% |
1.65% |
1.46% |
1.34% |
1.44% |
Expense
Reimbursement
(2) |
(0.25)% |
(0.28)% |
(0.21)% |
N/A |
N/A |
N/A |
N/A |
(0.41)% |
Total
Annual Fund Operating Expenses after Expense Reimbursement |
1.45% |
1.30% |
1.10% |
1.96% |
1.65% |
1.46% |
1.34% |
1.03% |
(1)
Fees
have been restated to reflect current
fees.
(2) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 1.45% for Class A, 1.30% for Class J and 1.10% for Institutional Class
shares. In addition, for Class R-6, the expense limit will maintain "Other
Expenses" (expressed as a percent of average net assets on an annualized basis)
not to exceed 0.04%, (excluding interest expense, expenses related to fund
investments, acquired fund fees and expenses, and tax reclaim recovery expenses
and other extraordinary expenses). It is expected that the expense limits will
continue through the period ending February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limits prior to the end
of the period. Subject to applicable expense limits, the Fund may reimburse PGI
for expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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1
year |
3
years |
5
years |
10
years |
Class
A |
$689 |
$1,033 |
$1,400 |
$2,428 |
Class
J |
232 |
471 |
834 |
1,855 |
Institutional
Class |
112 |
395 |
698 |
1,561 |
Class
R-1 |
199 |
615 |
1,057 |
2,285 |
Class
R-3 |
168 |
520 |
897 |
1,955 |
Class
R-4 |
149 |
462 |
797 |
1,746 |
Class
R-5 |
136 |
425 |
734 |
1,613 |
Class
R-6 |
105 |
415 |
748 |
1,689 |
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
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1
year |
3
years |
5
years |
10
years |
Class
J |
$132 |
$471 |
$834 |
$1,855 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
32.4% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in equity securities of emerging market
companies at the time of purchase. The Fund considers a security
to be tied economically to an emerging market if one or more of the following
criteria is present: (i) the issuer or guarantor of the security has its
principal place of business or principal office in an emerging market; (ii) the
principal trading market for the security is in an emerging market; (iii) the
issuer or guarantor of the security derives a majority of its revenue from
emerging markets; or (iv) the currency of settlement of the security is the
currency of an emerging market.
The
Fund considers “emerging market” to mean any market that is considered to be an
emerging market by the international financial community (including the MSCI
Emerging Markets Index or Bloomberg Emerging Markets USD Aggregate Bond Index).
Emerging markets generally exclude the United States, Canada, Japan, Australia,
Hong Kong, Singapore, New Zealand, and most nations located in Western Europe.
The Fund invests in equity securities regardless of market capitalization
(small, medium, or large) and style (growth or
value).
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Emerging
Markets Risk. Investments
in emerging markets may have more risk than those in developed markets because
the emerging markets are less developed and more illiquid. Emerging markets can
also be subject to increased social, economic, regulatory, and political
uncertainties and can be extremely volatile. The U.S. Securities and Exchange
Commission, the U.S. Department of Justice, and other U.S. authorities may be
limited in their ability to pursue bad actors in emerging markets, including
with respect to fraud.
•China
Investment Risk. The Fund invests a significant portion
of its assets in securities of issuers located or operating in China. Investing
in China involves certain heightened risks and considerations, including, among
others: frequent trading suspensions and government interventions (including by
nationalizing assets); currency exchange rate fluctuations or blockages; limits
on using brokers and on foreign ownership; different financial reporting
standards; higher dependence on exports and international trade; political and
social instability; infectious disease outbreaks; regional and global conflicts;
increased trade tariffs, embargoes, and other trade limitations; custody and
other risks associated with programs used to access Chinese securities; and
uncertainties in tax rules that could result in unexpected tax liabilities for
the Fund. Significant portions of the Chinese securities markets may become
rapidly illiquid, as Chinese issuers have the ability to suspend the trading of
their equity securities. Moreover, actions by the U.S. government, such as
delisting of certain Chinese companies from U.S. securities exchanges or
otherwise restricting their operations in the U.S., may negatively impact the
value of such securities held by the Fund.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk. Growth investing entails the risk that if growth companies do not
increase their earnings at a rate expected by investors, the market price of
their stock may decline significantly, even if earnings show an absolute
increase. Growth company stocks also typically lack the dividend yield that can
lessen price declines in market downturns.
•Smaller
Companies Risk. Investments in smaller companies may involve greater risk and price
volatility than investments in larger, more mature companies. Smaller companies
may have limited product lines, markets, or financial resources; lack the
competitive strength of larger companies; have less experienced managers; or
depend on a few key employees. Their securities often are less widely held and
trade less frequently and in lesser quantities, and their market prices often
fluctuate more, than securities of larger companies.
•Value
Style Risk. Value investing entails the risk that
value stocks may continue to be undervalued by the market for extended periods,
including the entire period during which the stock is held by a fund, or the
events that would cause the stock price to increase may not occur as anticipated
or at all. Moreover, a stock that appears to be undervalued actually may be
appropriately priced at a low level and, therefore, would not be profitable for
the fund.
Foreign
Currency Risk. Risks of investing in securities denominated in, or that trade in,
foreign (non-U.S.) currencies include changes in foreign exchange rates and
foreign exchange restrictions.
Foreign
Securities Risk. The risks of foreign securities include loss of value as a result
of: political or economic instability; nationalization, expropriation, or
confiscatory taxation; settlement delays; and limited government regulation
(including less stringent reporting, accounting, and disclosure standards than
are required of U.S. companies).
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect
sales charges on Class A shares; if they did, results would be
lower. The table shows for the last one, five, and ten calendar
year periods (or, if shorter, the life of the Fund), how the Fund’s average
annual total returns compare with those of one or more broad measures of market
performance.
For
periods prior to the inception date of Class R-6 shares (November 22, 2016), the
performance shown in the table for Class R-6 shares is that of the Fund’s Class
R-3 shares, adjusted to reflect the fees and expenses of Class R-6 shares.
However, where the adjustment for fees and expenses results in performance for
Class R-6 shares that is higher than the historical performance of the Class R-3
shares, the historical performance of the Class R-3 shares is used. These
adjustments result in performance for such periods that is no higher than the
historical performance of the Class R-3 shares.
During
2019, the Fund experienced a significant one-time gain of approximately
$0.11/share as the result of a settlement in a litigation proceeding. If such
gain had not been recognized, the total return amounts expressed herein would
have been lower.
Total Returns as of
December 31
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Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
19.56 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(24.38) |
% |
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Average
Annual Total Returns
For
the periods ended December 31, 2023 |
| 1
Year |
5
Years(1) |
10
Years(1) |
Class A
Return Before Taxes |
6.31% |
2.86% |
1.31% |
Class A
Return After Taxes on Distributions |
5.98% |
2.42% |
1.06% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
4.19% |
2.41% |
1.20% |
Class J
Return Before Taxes |
11.73% |
4.22% |
2.03% |
Institutional Class Return Before
Taxes |
12.96% |
4.40% |
2.28% |
Class R-1
Return Before Taxes |
11.95% |
3.56% |
1.44% |
Class R-3
Return Before Taxes |
12.31% |
3.88% |
1.75% |
Class R-4
Return Before Taxes |
12.50% |
4.07% |
1.95% |
Class R-5
Return Before Taxes |
12.65% |
4.20% |
2.07% |
Class R-6
Return Before Taxes |
13.07% |
4.50% |
2.18% |
MSCI
Emerging Markets Index NTR (reflects withholding taxes
on foreign dividends, but no deduction for fees, expenses, or other
taxes) |
9.83% |
3.69% |
2.66% |
(1) During
2019, the Fund experienced a significant one-time gain of approximately $0.11
per share as a result of a settlement in a litigation proceeding. If such gain
had not been recognized, the total return amounts shown for periods that include
the year ended December 31, 2019 would have been
lower.
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• Jeffrey
Kilkenny (since 2020), Portfolio Manager
Purchase
and Sale of Fund Shares
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Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A
and J |
Initial
Investment |
$1,000(1) |
A
and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A
and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, R-5, and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchases. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
GLOBAL REAL ESTATE
SECURITIES FUND
Objective
The Fund seeks to generate a total return.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$50,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
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A |
Inst. |
R-3 |
R-4 |
R-5 |
R-6 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.50% |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
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A |
Inst. |
R-3 |
R-4 |
R-5 |
R-6 |
Management
Fees |
0.87% |
0.87% |
0.87% |
0.87% |
0.87% |
0.87% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
N/A |
0.25% |
0.10% |
N/A |
N/A |
Other
Expenses |
0.24% |
0.14% |
0.33% |
0.29% |
0.27% |
0.02% |
Total
Annual Fund Operating Expenses |
1.36% |
1.01% |
1.45% |
1.26% |
1.14% |
0.89% |
Expense
Reimbursement (1) |
N/A |
(0.07)% |
N/A |
N/A |
N/A |
N/A |
Total
Annual Fund Operating Expenses after Expense Reimbursement |
1.36% |
0.94% |
1.45% |
1.26% |
1.14% |
0.89% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.94% for Institutional Class shares. It is expected that the expense
limit will continue through the period ending February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limit prior to the end of
the period. Subject to applicable expense limits, the Fund may reimburse PGI for
expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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1
year |
3
years |
5
years |
10
years |
Class
A |
$681 |
$957 |
$1,254 |
$2,095 |
Institutional
Class |
96 |
315 |
551 |
1,230 |
Class
R-3 |
148 |
459 |
792 |
1,735 |
Class
R-4 |
128 |
400 |
692 |
1,523 |
Class
R-5 |
116 |
362 |
628 |
1,386 |
Class
R-6 |
91 |
284 |
493 |
1,096 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
24.3% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in equity securities of U.S. and non-U.S.
companies principally engaged in the real estate industry at the time of
purchase. For the Fund’s investment policies, a real estate company has at least
50% of its assets, income, or profits derived from products or services related
to the real estate industry. Real estate companies include real estate
investment trusts (“REITs”) and companies with substantial real estate holdings
such as paper, lumber, hotel, and entertainment companies, as well as those
whose products and services relate to the real estate industry, such as building
supply manufacturers, mortgage lenders, and mortgage servicing companies. The
Fund invests in equity securities regardless of market capitalization (small,
medium or large). The Fund invests in value equity securities and growth equity
securities.
The
Fund invests a significant percentage of its portfolio in REITs and foreign
REIT-like entities. REITs are pooled investment vehicles that invest in income
producing real estate, real estate related loans, or other types of real estate
interests. REITs in the U.S. are corporations or business trusts that are
permitted to eliminate corporate-level federal income taxes by meeting certain
requirements of the Internal Revenue Code. Some foreign countries have adopted
REIT structures that are very similar to those in the U.S. Similarities include
pass-through tax treatment and portfolio diversification. Other countries have
REIT structures that are significantly different than the structure in the U.S.,
while some countries have not adopted a REIT-like structure at
all.
Under
normal market conditions, the Fund holds investments tied economically to at
least 3 countries and invests a percentage of its net assets in securities of
foreign issuers equal to at least the lesser of 40% or the percentage foreign
issuers in FTSE EPRA/NAREIT Developed Index minus 10%.
The
Fund concentrates its investments (invest more than 25% of its net assets) in
securities in the real estate
industry.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk. Growth investing entails the risk that if growth companies do not
increase their earnings at a rate expected by investors, the market price of
their stock may decline significantly, even if earnings show an absolute
increase. Growth company stocks also typically lack the dividend yield that can
lessen price declines in market downturns.
•Smaller
Companies Risk. Investments in smaller companies may involve greater risk and price
volatility than investments in larger, more mature companies. Smaller companies
may have limited product lines, markets, or financial resources; lack the
competitive strength of larger companies; have less experienced managers; or
depend on a few key employees. Their securities often are less widely held and
trade less frequently and in lesser quantities, and their market prices often
fluctuate more, than securities of larger companies.
•Value
Style Risk. Value investing entails the risk that
value stocks may continue to be undervalued by the market for extended periods,
including the entire period during which the stock is held by a fund, or the
events that would cause the stock price to increase may not occur as anticipated
or at all. Moreover, a stock that appears to be undervalued actually may be
appropriately priced at a low level and, therefore, would not be profitable for
the fund.
Foreign
Currency Risk. Risks of investing in securities denominated in, or that trade in,
foreign (non-U.S.) currencies include changes in foreign exchange rates and
foreign exchange restrictions.
Foreign
Securities Risk. The risks of foreign securities include loss of value as a result
of: political or economic instability; nationalization, expropriation, or
confiscatory taxation; settlement delays; and limited government regulation
(including less stringent reporting, accounting, and disclosure standards than
are required of U.S. companies).
Industry
Concentration Risk. A fund that concentrates investments in a particular industry or
group of industries has greater exposure than other funds to market, economic,
and other factors affecting that industry or group of
industries.
•Real
Estate. A fund concentrating in the real estate industry is subject to the
risks associated with direct ownership of real estate, securities of companies
in the real estate industry, and/or real estate investment trusts. These risks
are explained more fully below in Real Estate Investment Trusts (REITs) Risk and
Real Estate Securities Risk.
Real
Estate Investment Trusts (“REITs”) Risk. In addition to risks associated with investing in real estate
securities, REITs are dependent upon management skills, are not diversified, and
are subject to heavy cash flow dependency, risks of default by borrowers, and
self-liquidation. Investment in REITs also involves risks similar to risks of
investing in small market capitalization companies, such as limited financial
resources, less frequent and limited volume trading, and may be subject to more
abrupt or erratic price movements than larger company securities. A REIT could
fail to qualify for tax-free pass-through of income under the Internal Revenue
Code. Fund shareholders will indirectly bear their proportionate share of the
expenses of REITs in which the fund invests.
Real
Estate Securities Risk. Investing in real estate securities subjects the fund to the risks
associated with the real estate market (which are similar to the risks
associated with direct ownership in real estate), including declines in real
estate values, loss due to casualty or condemnation, property taxes, interest
rate changes, increased expenses, cash flow of underlying real estate assets,
regulatory changes (including zoning, land use, and rents), and environmental
problems, as well as to the risks related to the management skill and
creditworthiness of the issuer.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect
sales charges on Class A shares; if they did, results would be
lower. The table shows for the last one, five, and ten calendar
year periods (or, if shorter, the life of the Fund), how the Fund’s average
annual total returns compare with those of one or more broad measures of market
performance.
For
periods prior to the inception date of Class R-6 shares (November 25, 2014) and
Classes R-3, R-4, and R-5 shares (March 1, 2016), the performance shown in the
table for these newer classes is that of the Fund’s Institutional Class shares,
adjusted to reflect the respective fees and expenses of each class. These
adjustments result in performance for such periods that is no higher than the
historical performance of the Institutional Class
shares.
Total Returns as of
December 31
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Highest
return for a quarter during the period of the bar chart
above: |
Q4
2023 |
15.65 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(25.65) |
% |
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Average
Annual Total Returns
For
the periods ended December 31, 2023 |
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1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
4.34% |
2.14% |
3.66% |
Class A
Return After Taxes on Distributions |
3.58% |
1.39% |
2.63% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
2.80% |
1.53% |
2.56% |
Institutional Class Return Before
Taxes |
10.85% |
3.71% |
4.66% |
Class R-3
Return Before Taxes |
10.22% |
3.20% |
4.13% |
Class R-4
Return Before Taxes |
10.45% |
3.38% |
4.32% |
Class R-5
Return Before Taxes |
10.69% |
3.54% |
4.47% |
Class R-6
Return Before Taxes |
10.91% |
3.79% |
4.69% |
MSCI ACWI
NR USD Index (reflects withholding taxes
on foreign dividends, but no deduction for fees, expenses, or other
taxes) |
22.20% |
11.72% |
7.93% |
FTSE
EPRA/NAREIT Developed Index NTR (reflects withholding taxes
on foreign dividends, but no deduction for fees, expenses, or other
taxes) |
9.67% |
2.81% |
3.57% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the MSCI ACWI NR USD Index in order to
meet the revised definition of “broad-based securities market
index.” The FTSE EPRA/NAREIT Developed Index
NTR is included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor
Principal
Global Investors, LLC
Sub-Advisor
and Portfolio Managers
Principal
Real Estate Investors, LLC
• Simon
Hedger (since 2007), Portfolio Manager
• Anthony
Kenkel (since 2010), Portfolio Manager
• Kelly
D. Rush (since 2007), Portfolio Manager
Purchase
and Sale of Fund Shares
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Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A
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Initial
Investment |
$1,000(1) |
A
and C |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A
and C |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-3, R-4, R-5, and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
See
Purchase of Fund Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
GOVERNMENT & HIGH
QUALITY BOND FUND
Objective
The Fund seeks to provide a high level of current income
consistent with safety and liquidity.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
You may
qualify for sales charge discounts if you and your family invest, or agree to
invest in the future, at least $100,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
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A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5
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Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
2.25% |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
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A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5
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Management
Fees |
0.49% |
0.49% |
0.49% |
0.49% |
0.49% |
0.49% |
0.49% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.21% |
0.29% |
0.05% |
0.54% |
0.33% |
0.29% |
0.27% |
Total
Annual Fund Operating Expenses |
0.85% |
0.93% |
0.54% |
1.38% |
1.07% |
0.88% |
0.76% |
Expense
Reimbursement (1) |
N/A |
N/A |
(0.01)% |
(0.09)% |
(0.09)% |
(0.09)% |
(0.09)% |
Total
Annual Fund Operating Expenses after Expense Reimbursement |
0.85% |
0.93% |
0.53% |
1.29% |
0.98% |
0.79% |
0.67% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.53% for Institutional Class, 1.29% for Class R-1, 0.98% for Class R-3,
0.79% for Class R-4, and 0.67% for Class R-5 shares. It is expected that the
expense limits will continue through the period ending February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limits prior to the end
of the period. Subject to applicable expense limits, the Fund may reimburse PGI
for expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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1
year |
3
years |
5
years |
10
years |
Class
A |
$310 |
$490 |
$686 |
$1,250 |
Class
J |
195 |
296 |
515 |
1,143 |
Institutional
Class |
54 |
172 |
301 |
676 |
Class
R-1 |
131 |
428 |
747 |
1,650 |
Class
R-3 |
100 |
331 |
581 |
1,298 |
Class
R-4 |
81 |
272 |
479 |
1,076 |
Class
R-5 |
68 |
234 |
414 |
934
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With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
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1
year |
3
years |
5
years |
10
years |
Class
J |
$95 |
$296 |
$515 |
$1,143 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
128.0% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in debt securities issued by the U.S.
government, its agencies, or instrumentalities or debt securities that are
rated, at the time of purchase, AAA by S&P Global Ratings (“S&P Global”)
or Aaa by Moody’s Investors Service, Inc. (“Moody’s”), including, but not
limited to, asset-backed securities (“ABS”), mortgage securities such as agency
and non-agency collateralized mortgage obligations, and other obligations that
are secured by mortgages or mortgage-backed securities (“MBS”) (also referred to
as securitized products). The Fund also invests in ABS and MBS that are rated
lower than AAA by S&P Global or Aaa by Moody’s (or of comparable quality),
including collateralized mortgage obligations, and in other obligations that are
secured by mortgages or MBS. The MBS in which the Fund invests include MBS
trading in the to-be-announced (“TBA”) markets. If a security has been rated by
only one of the rating agencies, that rating will determine the security’s
rating; if the security is rated differently by the rating agencies, the highest
rating will be used; and if the security has not been rated by either of the
rating agencies, those selecting such investments will determine the security’s
quality.
Under
normal circumstances, the Fund maintains an average portfolio duration that is
within ±50% of the duration of the Bloomberg U.S. Agency Fixed Rate MBS Index,
which as of January 31, 2024 was 5.72 years. The Fund is not managed to a
particular maturity. The Fund’s strategies may result in the active and frequent
trading of the Fund’s portfolio securities.
The
Fund invests in derivatives, including Treasury futures and securities delivered
in TBA transactions, to manage the fixed-income exposure. A derivative is a
financial arrangement, the value of which is derived from, or based on, a
traditional security, asset, or market index.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Futures.
Futures contracts involve specific
risks, including: the imperfect correlation between the change in market value
of the instruments held by the Fund and the price of the futures contract;
possible lack of a liquid secondary market for a futures contract and the
resulting inability to close a futures contract when desired; counterparty risk;
and if the Fund has insufficient cash, it may have to sell securities from its
portfolio to meet daily variation margin
requirements.
Fixed-Income
Securities Risk. Fixed-income securities are subject to interest rate, credit
quality, and liquidity risks. The market value of fixed-income securities
generally declines when interest rates rise, and increased interest rates may
adversely affect the liquidity of certain fixed-income securities. Moreover, an
issuer of fixed-income securities could default on its payment obligations due
to increased interest rates or for other reasons.
High
Portfolio Turnover Risk. High portfolio turnover (more than 100%) caused by active and
frequent trading of portfolio securities may result in accelerating the
realization of taxable gains and losses, lower fund performance, and increased
brokerage costs.
Portfolio
Duration Risk. Portfolio duration is a measure of the expected life of a
fixed-income security and its sensitivity to changes in interest rates. The
longer a fund’s average portfolio duration, the more sensitive the fund will be
to changes in interest rates, which means funds with longer average portfolio
durations may be more volatile than those with shorter
durations.
Real
Estate Securities Risk. Investing in real estate securities subjects the fund to the risks
associated with the real estate market (which are similar to the risks
associated with direct ownership in real estate), including declines in real
estate values, loss due to casualty or condemnation, property taxes, interest
rate changes, increased expenses, cash flow of underlying real estate assets,
regulatory changes (including zoning, land use, and rents), and environmental
problems, as well as to the risks related to the management skill and
creditworthiness of the issuer.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Securitized
Products Risk. Investments in securitized products are subject to risks similar to
traditional fixed-income securities, such as credit, interest rate, liquidity,
prepayment, extension, and default risk, as well as additional risks associated
with the nature of the assets and the servicing of those assets. Unscheduled
prepayments on securitized products may have to be reinvested at lower rates. A
reduction in prepayments may increase the effective maturities of these
securities, exposing them to the risk of decline in market value over time
(extension risk). With respect to securities that are delivered in TBA
transactions, there is a risk that the actual securities received by the Fund
may be less favorable than what was anticipated when entering into the
transaction.
U.S.
Government Securities Risk. Yields available from U.S. government securities are generally lower
than yields from many other fixed-income securities. The value of U.S.
government securities may be adversely impacted by changes in interest rates,
changes in the credit rating of the U.S. government, or a default by the U.S.
government.
U.S.
Government-Sponsored Securities Risk. Securities issued by U.S. government-sponsored enterprises such as
the Federal Home Loan Mortgage Corporation, the Federal National Mortgage
Association, and the Federal Home Loan Banks are not issued or guaranteed by the
U.S. government.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect
sales charges on Class A shares; if they did, results would be
lower. The table shows for the last one, five, and ten calendar
year periods (or, if shorter, the life of the Fund), how the Fund’s average
annual total returns compare with those of one or more broad measures of market
performance.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q4
2023 |
7.52 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q3
2022 |
(5.49) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
2.12% |
(0.84)% |
0.43% |
Class A
Return After Taxes on Distributions |
1.03% |
(1.62)% |
(0.62)% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
1.24% |
(0.95)% |
(0.11)% |
Class J
Return Before Taxes |
3.47% |
(0.44)% |
0.63% |
Institutional Class Return Before
Taxes |
4.87% |
(0.11)% |
0.95% |
Class R-1
Return Before Taxes |
3.96% |
(0.89)% |
0.17% |
Class R-3
Return Before Taxes |
4.39% |
(0.57)% |
0.49% |
Class R-4
Return Before Taxes |
4.59% |
(0.38)% |
0.68% |
Class R-5
Return Before Taxes |
4.60% |
(0.26)% |
0.80% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.81% |
Bloomberg
U.S. Agency Fixed Rate MBS Index (reflects no deduction for
fees, expenses, or taxes) |
5.05% |
0.25% |
1.39% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Bloomberg U.S. Aggregate Bond Index
in order to meet the revised definition of “broad-based securities market
index.” The Bloomberg U.S. Agency Fixed Rate
MBS Index is included as an additional index for the Fund as it shows how the
Fund’s performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
•Bryan
C. Davis (since 2019), Portfolio Manager
•Zach
Gassmann (since 2019), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A
and J |
Initial
Investment |
$1,000(1) |
A
and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A
and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, and R-5 |
There
are no minimum initial or subsequent investment requirements for eligible
purchases. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
GOVERNMENT MONEY MARKET
FUND
Objective
The Fund seeks as high a level of current income as is considered
consistent with preservation of principal and maintenance of
liquidity.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees (fees paid directly from your
investment): None
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
| |
| Share
Class |
|
Inst. |
R-6 |
Management
Fees |
0.15% |
0.15% |
Distribution
and/or Service (12b-1) Fees |
N/A |
N/A |
Other
Expenses |
0.01% |
0.01% |
Acquired
Fund Fees and Expenses |
0.01% |
0.01% |
Total
Annual Fund Operating Expenses |
0.17% |
0.17% |
Fee
Waiver and Expense Reimbursement (1)(2) |
(0.01)% |
(0.02)% |
Total
Annual Operating Expenses after Fee Waiver and Expense
Reimbursement |
0.16% |
0.15% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to reduce the Fund's management fees through the period ending February 28,
2025. The fee waiver will reduce the Fund's management fees in an amount equal
to all Acquired Fund Fees and Expenses. It is expected that the fee waiver will
continue through the period disclosed; however, Principal Funds, Inc. and PGI,
the parties to the agreement, may mutually agree to terminate the fee waiver
prior to the end of the period.
(2) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund's expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.20% for Institutional Class Shares. In addition, for Class R-6, the
expense limit will maintain "Other Expenses" (expressed as a percent of average
net assets on an annualized basis) not to exceed 0.00%, (excluding interest
expense, expenses related to fund investments, acquired fund fees and expenses,
and tax reclaim recovery expenses and other extraordinary expenses). It is
expected that the expense limits will continue through the period ending
February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limit prior to the end of
the period. Subject to applicable expense limits, the Fund may reimburse PGI for
expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| 1
year |
3
years |
5
years |
10
years |
Institutional
Class |
$16 |
$54 |
$95 |
$216 |
Class
R-6 |
15 |
53 |
94 |
215
|
Principal Investment
Strategies
The Fund will invest at least 99.5% of
its total assets in cash, government securities, and/or repurchase agreements
that are collateralized fully by cash or government securities (government
securities can include shares of other government money market
funds). The Fund invests at least 80% of its net assets, plus
any borrowings for investment purposes, in government securities and repurchase
agreements that are collateralized by government securities. Specifically, the
Fund will invest in U.S. treasury bills, bonds, and other obligations issued or
guaranteed by the U.S. government or its agencies or instrumentalities (which
will include instruments with variable or floating interest rates), as well as
shares of other government money market funds. The Fund seeks to maintain a
stable net asset value of $1.00 per share. The Fund maintains a dollar weighted
average portfolio maturity of 60 days or less. As with all mutual funds, the
value of the Fund’s assets may rise or fall.
Principal
Risks
You could
lose money by investing in the Fund. Although the Fund seeks to
preserve the value of your investment at $1.00 per share, it cannot guarantee it
will do so. An investment in the Fund is not a bank account and is not insured
or guaranteed by the Federal Deposit Insurance Corporation or any other
government agency. The Fund’s sponsor is not required to
reimburse the Fund for losses, and you should not expect that the sponsor will
provide financial support to the Fund at any time, including during periods of
market stress. The
principal risks of investing in the Fund are listed below in alphabetical order
and not in order of significance.
Counterparty
Risk. Counterparty risk is the risk that the counterparty to a contract or
other obligation will be unable or unwilling to honor its
obligations.
Fixed-Income
Securities Risk. Fixed-income securities are subject to interest rate, credit
quality, and liquidity risks. The market value of fixed-income securities
generally declines when interest rates rise, and increased interest rates may
adversely affect the liquidity of certain fixed-income securities. Moreover, an
issuer of fixed-income securities could default on its payment obligations due
to increased interest rates or for other reasons.
Floating
and Variable Rate Securities Risk. The market prices of securities with variable and floating interest
rates are generally less sensitive to interest rate changes than are the market
prices of securities of fixed interest rates. Floating and variable rate
securities may decline in value if market interest rates or interest rates paid
by them do not move as expected. Floating and variable rate securities may be
subject to greater liquidity risk than other debt securities, meaning that there
may be limitations on the Fund’s ability to sell the securities at any given
time.
Investment
Company Securities Risk. A fund that invests in another investment company (for example,
another fund or an exchange-traded fund (or ETF)) is subject to the risks
associated with direct ownership of the securities in which such investment
company invests. Fund shareholders indirectly bear their proportionate share of
the expenses of each such investment company.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Repurchase
Agreement Risk. If the other party to a repurchase agreement defaults on its
obligation under the agreement, the Fund may suffer delays and incur costs or
lose money in exercising its rights under the agreement. If the seller fails to
repurchase the security and the market value of the security declines, the Fund
may lose money.
U.S.
Government Securities Risk. Yields available from U.S. government securities are generally lower
than yields from many other fixed-income securities. The value of U.S.
government securities may be adversely impacted by changes in interest rates,
changes in the credit rating of the U.S. government, or a default by the U.S.
government.
U.S.
Government-Sponsored Securities Risk. Securities issued by U.S. government-sponsored enterprises such as
the Federal Home Loan Mortgage Corporation, the Federal National Mortgage
Association, and the Federal Home Loan Banks are not issued or guaranteed by the
U.S. government.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
For
periods prior to the inception date of Class R-6 shares (December 12, 2022), the
performance shown in the table for Class R-6 shares is that of the Fund’s
Institutional Class shares.
Life
of Fund returns are measured from the date the Fund’s shares were first sold
(December 20, 2017).
Total Returns as of
December 31
`
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q4
2023 |
1.32 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2022 |
0.00 |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
Life
of Fund |
Institutional Class Return Before
Taxes |
4.97% |
1.75% |
1.74% |
Class R-6
Return Before Taxes |
5.03% |
1.76% |
1.75% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
0.99% |
Bloomberg
U.S. Treasury Bellwethers 3 Month Index (reflects no deduction for
fees, expenses, or taxes) |
5.15% |
1.92% |
1.91% |
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Bloomberg U.S. Aggregate Bond Index
in order to meet the revised definition of “broad-based securities market
index.” The Bloomberg U.S. Treasury
Bellwethers 3 Month Index is included as an additional index for the Fund as it
shows how the Fund’s performance compares with the returns of an index of funds
with similar investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
•Allison
Hitchings (since 2023), Portfolio Manager
•Tracy
Reeg (since 2017), Portfolio Manager
Purchase
and Sale of Fund Shares
For
Institutional Class and Class R-6 shares, there are no minimum initial or
subsequent investment requirements for eligible purchasers.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
HIGH INCOME
FUND
Objective
The
Fund seeks high current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment): None
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
| |
| Share
Class |
| Inst. |
Management
Fees |
0.61% |
Distribution
and/or Service (12b-1) Fees |
N/A |
Other
Expenses |
0.02% |
Total
Annual Fund Operating Expenses |
0.63% |
Fee
Waiver (1) |
(0.02)% |
Total
Annual Fund Operating Expenses after Fee Waiver |
0.61% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to waive a portion of the Fund’s management fees through the period ending
February 28,
2025. The fee waiver will reduce the Fund's management fees by
0.015% (expressed as a percent of average net assets on an annualized basis). It
is expected that the fee waiver will continue through the period disclosed;
however, Principal Funds, Inc. and PGI, the parties to the agreement, may
mutually agree to terminate the fee waiver prior to the end of the
period.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Institutional
Class |
$62 |
$200 |
$349 |
$784
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
35.0% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests primarily in below investment grade bonds
and bank loans (sometimes called “high yield” or “junk”), which are rated, at
the time of purchase, Ba1 or lower by Moody’s Investors Service, Inc.
(“Moody’s”) and BB+ or lower by S&P Global Ratings (“S&P Global”). If
the bond or bank loan has been rated by only one of the rating agencies, that
rating will determine the rating of the bond or bank loan; if the bond or bank
loan is rated differently by the rating agencies, the highest rating will be
used; and if the bond or bank loan has not been rated by either of the rating
agencies, those selecting such investments will determine the quality of the
bond or bank loan. The Fund also invests in investment grade bank loans (also
known as senior floating rate interests) and securities of foreign
issuers.
In
managing the Fund, Principal Global Investors, LLC (“PGI”), the Fund’s
investment advisor, allocates the Fund’s assets among multiple sub-advisors that
use differing approaches in making their investment decisions, which include
actively managed and more passive investment strategies. With respect to the
passive strategy, the Fund uses a sampling methodology to purchase securities
with generally the same risk and return characteristics as the Bloomberg U.S.
Corporate High Yield 2% Issuer Capped Index (the “Index”) in an attempt to match
or exceed the performance of the Index.
Under normal circumstances, the Fund
maintains an average portfolio duration that is within ±25% of the duration of
the Index, which as of January 31, 2024 was 3.33 years. The Fund is not managed
to a particular maturity.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Bank
Loans Risk. Changes in economic conditions are likely to cause issuers of bank
loans (also known as senior floating rate interests) to be unable to meet their
obligations. In addition, the value of the collateral securing the loan (if any)
may decline, causing a loan to be substantially unsecured. Underlying credit
agreements governing the bank loans, reliance on market makers, priority of
repayment, and overall market volatility may harm the liquidity of
loans.
Counterparty
Risk. Counterparty risk is the risk that the counterparty to a contract or
other obligation will be unable or unwilling to honor its
obligations.
Fixed-Income
Securities Risk. Fixed-income securities are subject to interest rate, credit
quality, and liquidity risks. The market value of fixed-income securities
generally declines when interest rates rise, and increased interest rates may
adversely affect the liquidity of certain fixed-income securities. Moreover, an
issuer of fixed-income securities could default on its payment obligations due
to increased interest rates or for other reasons.
Foreign
Securities Risk. The risks of foreign securities include loss of value as a result
of: political or economic instability; nationalization, expropriation, or
confiscatory taxation; settlement delays; and limited government regulation
(including less stringent reporting, accounting, and disclosure standards than
are required of U.S. companies).
High
Yield Securities Risk. High
yield fixed-income securities (commonly referred to as “junk bonds”) are subject
to greater credit quality risk than higher rated fixed-income securities and
should be considered speculative.
Leverage
Risk. Leverage created by borrowing or certain types of transactions or
investments may impair the fund’s liquidity, cause it to liquidate positions at
an unfavorable time, increase volatility of the fund’s net asset value, or
diminish the fund’s performance.
Portfolio
Duration Risk. Portfolio duration is a measure of the expected life of a
fixed-income security and its sensitivity to changes in interest rates. The
longer a fund’s average portfolio duration, the more sensitive the fund will be
to changes in interest rates, which means funds with longer average portfolio
durations may be more volatile than those with shorter
durations.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
8.47 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(12.72) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Institutional Class Return Before
Taxes |
13.02% |
4.48% |
3.59% |
Institutional Class Return After Taxes
on Distributions |
9.73% |
1.85% |
1.05% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
7.58% |
2.29% |
1.60% |
Bloomberg
U.S. Aggregate Bond Index
(reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.81% |
Bloomberg
U.S. Corporate High Yield 2% Issuer Capped Index (reflects no deduction for
fees, expenses, or taxes) |
13.44% |
5.35% |
4.59% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Bloomberg U.S. Aggregate Bond Index
in order to meet the revised definition of “broad-based securities market
index.” The Bloomberg U.S. Corporate High
Yield 2% Issuer Capped Index is included as an additional index for the Fund as
it shows how the Fund’s performance compares with the returns of an index of
funds with similar investment
objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
•James
W. Fennessey (since 2007), Portfolio Manager
•Randy
L. Welch (since 2007), Portfolio Manager
Sub-Advisors
Insight
North America LLC
Polen
Capital Credit, LLC
Post
Advisory Group, LLC
Purchase
and Sale of Fund Shares
For
Institutional Class shares, there are no minimum initial or subsequent
investment requirements for eligible purchasers.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
HIGH YIELD
FUND
Objective
The Fund seeks to provide a high level of current
income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
You may
qualify for sales charge discounts if you and your family invest, or agree to
invest in the future, at least $100,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
A |
C |
Inst. |
R-6 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
3.75% |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
A |
C |
Inst. |
R-6 |
Management
Fees |
0.51% |
0.51% |
0.51% |
0.51% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
1.00% |
N/A |
N/A |
Other
Expenses |
0.18% |
0.24% |
0.14% |
0.02% |
Total
Annual Fund Operating Expenses |
0.94% |
1.75% |
0.65% |
0.53% |
Expense
Reimbursement
(1) |
N/A |
N/A |
(0.04)% |
N/A |
Total
Annual Fund Operating Expenses after Expense Reimbursement |
0.94% |
1.75% |
0.61% |
0.53% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expense and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.61% for Institutional Class shares. It is expected that the expense
limit will continue through the period ending February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limit prior to the end of
the period. Subject to applicable expense limits, the Fund may reimburse PGI for
expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example assumes conversion of the Class
C shares to Class A shares after the eighth year. The Example also assumes that
your investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
A |
$467 |
$663 |
$876 |
$1,486 |
Class
C |
278 |
551 |
949 |
1,848 |
Institutional
Class |
62 |
204 |
358 |
807 |
Class
R-6 |
54 |
170 |
296 |
665
|
With respect to Class C
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
C |
$178 |
$551 |
$949 |
$1,848 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
28.0% of the average
value of its portfolio.
Principal Investment
Strategies
Under normal circumstances, the Fund invests at least 80% of its
net assets, plus any borrowings for investment purposes, in below investment
grade bonds and bank loans (sometimes called “high yield” or “junk”), which are
rated, at the time of purchase, Ba1 or lower by Moody’s Investors Service, Inc.
(“Moody’s”) and BB+ or lower by S&P Global Ratings (“S&P Global”). If
the bond or bank loan has been rated by only one of the rating agencies, that
rating will determine the rating of the bond or bank loan; if the bond or bank
loan is rated differently by the rating agencies, the highest rating will be
used; and if the bond or bank loan has not been rated by either of those
agencies, those selecting such investments will determine the quality of the
bond or bank loan. The Fund also invests in investment grade 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 ±20% of the duration of
the Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index, which as of
January 31, 2024 was 3.33 years. The Fund is not managed to a particular
maturity.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Bank
Loans Risk. Changes in economic conditions are likely to cause issuers of bank
loans (also known as senior floating rate interests) to be unable to meet their
obligations. In addition, the value of the collateral securing the loan (if any)
may decline, causing a loan to be substantially unsecured. Underlying credit
agreements governing the bank loans, reliance on market makers, priority of
repayment, and overall market volatility may harm the liquidity of
loans.
Fixed-Income
Securities Risk. Fixed-income securities are subject to interest rate, credit
quality, and liquidity risks. The market value of fixed-income securities
generally declines when interest rates rise, and increased interest rates may
adversely affect the liquidity of certain fixed-income securities. Moreover, an
issuer of fixed-income securities could default on its payment obligations due
to increased interest rates or for other reasons.
Foreign
Securities Risk. The risks of foreign securities include loss of value as a result
of: political or economic instability; nationalization, expropriation, or
confiscatory taxation; settlement delays; and limited government regulation
(including less stringent reporting, accounting, and disclosure standards than
are required of U.S. companies).
High
Yield Securities Risk. High yield fixed-income securities (commonly referred to as “junk
bonds”) are subject to greater credit quality risk than higher rated
fixed-income securities and should be considered speculative.
Portfolio
Duration Risk. Portfolio duration is a measure of the expected life of a
fixed-income security and its sensitivity to changes in interest rates. The
longer a fund’s average portfolio duration, the more sensitive the fund will be
to changes in interest rates, which means funds with longer average portfolio
durations may be more volatile than those with shorter
durations.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and after taxes) is not necessarily an
indication of how the Fund will perform in the future. You may
get updated performance information at www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect sales charges on Class A shares; if
they did, results would be lower. The table shows for the last one, five, and
ten calendar year periods (or, if shorter, the life of the Fund), how the Fund’s
average annual total returns compare with those of one or more broad measures of
market performance.
For
periods prior to the inception date of Class R-6 shares (November 22, 2016), the
performance shown in the table for Class R-6 shares is that of the Fund’s Class
A shares, adjusted to reflect the fees and expenses of Class R-6 shares.
However, where the adjustment for fees and expenses results in performance for
Class R-6 shares that is higher than the historical performance of the Class A
shares, the historical performance of the Class A shares is used (without
respect to sales charges, which are not applicable to Class R-6). These
adjustments result in performance for such periods that is no higher than the
historical performance of the Class A shares.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
8.73 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(12.01) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
8.12% |
4.62% |
3.86% |
Class A
Return After Taxes on Distributions |
5.59% |
2.40% |
1.50% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
4.73% |
2.58% |
1.87% |
Class C
Return Before Taxes |
10.46% |
4.61% |
3.64% |
Institutional Class Return Before
Taxes |
12.86% |
5.76% |
4.58% |
Class R-6
Return Before Taxes |
12.79% |
5.82% |
4.54% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.81% |
Bloomberg
U.S. Corporate High Yield 2% Issuer Capped Index (reflects no deduction for
fees, expenses, or taxes) |
13.44% |
5.35% |
4.59% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Bloomberg U.S. Aggregate Bond Index
in order to meet the revised definition of “broad-based securities market
index.” The Bloomberg U.S. Corporate High
Yield 2% Issuer Capped Index is included as an additional index for the Fund as
it shows how the Fund’s performance compares with the returns of an index of
funds with similar investment
objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• Mark
P. Denkinger (since 2009), Portfolio Manager
• Josh
Rank (since 2015), Portfolio Manager
• Darrin
E. Smith (since 2009), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A
and C |
Initial
Investment |
$1,000(1) |
A
and C |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A
and C |
Subsequent
Investments |
$100(1)(2) |
Institutional
and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchases. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Class
C shares are subject to an 8-year automatic conversion plan whereby Class C
shares held for eight years after purchase will automatically convert to Class A
shares of the same Fund. See Purchase of Fund Shares for more
information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
INFLATION PROTECTION
FUND
Objective
The Fund seeks to provide current income and real (after
inflation) total returns.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Share
Class |
| J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Share
Class |
| J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.38% |
0.38% |
0.38% |
0.38% |
0.38% |
0.38% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.27% |
0.02% |
0.54% |
0.33% |
0.29% |
0.27% |
Total
Annual Fund Operating Expenses |
0.80% |
0.40% |
1.27% |
0.96% |
0.77% |
0.65% |
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$182 |
$255 |
$444 |
$990 |
Institutional
Class |
41 |
128 |
224 |
505 |
Class
R-1 |
129 |
403 |
697 |
1,534 |
Class
R-3 |
98 |
306 |
531 |
1,178 |
Class
R-4 |
79 |
246 |
428 |
954 |
Class
R-5 |
66 |
208 |
362 |
810
|
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$82 |
$255 |
$444 |
$990
|
Portfolio
Turnover
The Fund pays transaction costs, such as commissions, when it buys
and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs and may result in higher
taxes when Fund shares are held in a taxable account. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s
performance. During the most recent fiscal year, the Fund’s portfolio turnover
rate was 106.3% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund invests primarily in inflation-indexed bonds of varying maturities issued
by the U.S. and non-U.S. governments, their agencies, or instrumentalities, and
U.S. and non-U.S. corporations. Inflation-indexed bonds are fixed-income
securities that are structured to provide protection against inflation. The
value of the bond’s principal or the interest income paid on the bond is
adjusted to track changes in an official inflation measure. The U.S. Treasury
uses the Consumer Price Index for Urban Consumers as the inflation measure.
Inflation-indexed bonds issued by a foreign government are generally adjusted to
reflect a comparable inflation index, calculated by that government. The Fund
also invests in foreign securities, U.S. Treasuries, and agency securities. The
Fund utilizes derivative strategies (specifically, futures, swaps, and options)
for purposes of managing the risk profile of the Fund. A derivative is a
financial arrangement, the value of which is derived from, or based on, a
traditional security, asset, or market index.
Under
normal circumstances, the Fund maintains an average portfolio duration that is
within ±20% of the duration of the Bloomberg U.S. Treasury Inflation Protected
Securities (“TIPS”) Index, which as of January 31, 2024 was 6.76 years. The Fund
is not managed to a particular maturity. The Fund’s strategies may result in the
active and frequent trading of the Fund’s portfolio
securities.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Counterparty
Risk. Counterparty risk is the risk that the counterparty to a contract or
other obligation will be unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Futures
and Swaps. These derivative instruments involve specific risks, including: the
imperfect correlation between the change in market value of the instruments held
by the fund and the price of the instruments; possible lack of a liquid
secondary market for an instrument and the resulting inability to close it when
desired; counterparty risk; and if the fund has insufficient cash, it may have
to sell securities from its portfolio to meet any applicable daily variation
margin requirements.
•Options.
Options involve specific risks,
including: the imperfect correlation between the change in market value of the
instruments held by the Fund and the price of the options; counterparty risk;
difference in trading hours for the options markets and the markets for the
underlying securities (rate movements can take place in the underlying markets
that cannot be reflected in the options markets); and an insufficient liquid
secondary market for particular options.
Fixed-Income
Securities Risk. Fixed-income securities are subject to interest rate, credit
quality, and liquidity risks. The market value of fixed-income securities
generally declines when interest rates rise, and increased interest rates may
adversely affect the liquidity of certain fixed-income securities. Moreover, an
issuer of fixed-income securities could default on its payment obligations due
to increased interest rates or for other reasons.
Foreign
Currency Risk. Risks of investing in securities denominated in, or that trade in,
foreign (non-U.S.) currencies include changes in foreign exchange rates and
foreign exchange restrictions.
Foreign
Securities Risk. The risks of foreign securities include loss of value as a result
of: political or economic instability; nationalization, expropriation, or
confiscatory taxation; settlement delays; and limited government regulation
(including less stringent reporting, accounting, and disclosure standards than
are required of U.S. companies).
High
Portfolio Turnover Risk. High portfolio turnover (more than 100%) caused by active and
frequent trading of portfolio securities may result in accelerating the
realization of taxable gains and losses, lower fund performance, and increased
brokerage costs.
Portfolio
Duration Risk. Portfolio duration is a measure of the expected life of a
fixed-income security and its sensitivity to changes in interest rates. The
longer a fund’s average portfolio duration, the more sensitive the fund will be
to changes in interest rates, which means funds with longer average portfolio
durations may be more volatile than those with shorter
durations.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
U.S.
Government Securities Risk. Yields available from U.S. government securities are generally lower
than yields from many other fixed-income securities. The value of U.S.
government securities may be adversely impacted by changes in interest rates,
changes in the credit rating of the U.S. government, or a default by the U.S.
government.
U.S.
Government-Sponsored Securities Risk. Securities issued by U.S. government-sponsored enterprises such as
the Federal Home Loan Mortgage Corporation, the Federal National Mortgage
Association, and the Federal Home Loan Banks are not issued or guaranteed by the
U.S. government.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
4.72 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q2
2022 |
(6.33) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Institutional Class Return Before
Taxes |
3.49% |
2.75% |
1.99% |
Institutional Class Return After Taxes
on Distributions |
2.01% |
1.21% |
0.88% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
2.07% |
1.54% |
1.08% |
Class J
Return Before Taxes |
1.99% |
2.21% |
1.37% |
Class R-1
Return Before Taxes |
2.57% |
1.86% |
1.10% |
Class R-3
Return Before Taxes |
2.77% |
2.19% |
1.40% |
Class R-4
Return Before Taxes |
3.08% |
2.40% |
1.62% |
Class R-5
Return Before Taxes |
3.24% |
2.50% |
1.73% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.81% |
Bloomberg
U.S. Treasury TIPS Index (reflects no deduction for
fees, expenses, or taxes) |
3.90% |
3.15% |
2.42% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Bloomberg U.S. Aggregate Bond Index
in order to meet the revised definition of “broad-based securities market
index.” The Bloomberg U.S. Treasury TIPS
Index is included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor
Principal
Global Investors, LLC
Sub-Advisor
and Portfolio Manager
BlackRock
Financial Management, Inc.
• David
Rogal (since 2022), Managing Director
• Harrison
Segall (since 2024), Director
Sub-Sub-Advisor
and Portfolio Manager
BlackRock
International Limited
•Chris
Allen (since 2017), Managing Director
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, and R-5 |
There
are no minimum initial or subsequent investment requirements for eligible
purchases. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
INTERNATIONAL FUND
I
Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment): None
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Share
Class |
| Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Management
Fees |
0.65% |
0.65% |
0.65% |
0.65% |
0.65% |
0.65% |
Distribution
and/or Service (12b-1) Fees |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
N/A |
Other
Expenses (1) |
0.36% |
0.71% |
0.50% |
0.46% |
0.44% |
0.19% |
Total
Annual Fund Operating Expenses |
1.01% |
1.71% |
1.40% |
1.21% |
1.09% |
0.84% |
Expense
Reimbursement
(2) |
(0.09)% |
N/A |
N/A |
N/A |
N/A |
(0.02)% |
Total
Annual Fund Operating Expenses after Expense Reimbursement |
0.92% |
1.71% |
1.40% |
1.21% |
1.09% |
0.82% |
(1) Includes
0.13% of expenses associated with the reclaim of foreign taxes paid. The expense
is not subject to the contractual expense limit.
(2) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.79% for Institutional Class shares. In addition, for Class R-6, the
expense limit will maintain "Other Expenses" (expressed as a percent of average
net assets on an annualized basis) not to exceed 0.04% (excluding interest
expense, expenses related to fund investments, acquired fund fees and expenses,
and tax reclaim recovery expenses and other extraordinary expenses). It is
expected that the expense limits will continue through the period ending
February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limits prior to the end
of the period. Subject to applicable expense limits, the Fund may reimburse PGI
for expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Institutional
Class |
$94 |
$313 |
$549 |
$1,228 |
Class
R-1 |
174 |
539 |
928 |
2,019 |
Class
R-3 |
143 |
443 |
766 |
1,680 |
Class
R-4 |
123 |
384 |
665 |
1,466 |
Class
R-5 |
111 |
347 |
601 |
1,329 |
Class
R-6 |
84 |
266 |
464 |
1,035 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
65.8% of the average
value of its portfolio.
Principal Investment
Strategies
The
Fund invests primarily in foreign equity securities, including emerging market
securities. The Fund typically invests in foreign securities of at least ten
countries. The Fund invests in equity securities of small, medium, and large
market capitalization companies.
The
Fund invests in value equity securities, an investment strategy that emphasizes
buying equity securities that appear to be undervalued. The Fund also invests in
growth equity securities, an investment strategy that emphasizes buying equity
securities of companies whose potential for growth of capital and earnings is
expected to be above average.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Emerging
Markets Risk. Investments
in emerging markets may have more risk than those in developed markets because
the emerging markets are less developed and more illiquid. Emerging markets can
also be subject to increased social, economic, regulatory, and political
uncertainties and can be extremely volatile. The U.S. Securities and Exchange
Commission, the U.S. Department of Justice, and other U.S. authorities may be
limited in their ability to pursue bad actors in emerging markets, including
with respect to fraud.
•China
Investment Risk. The Fund invests a significant portion
of its assets in securities of issuers located or operating in China. Investing
in China involves certain heightened risks and considerations, including, among
others: frequent trading suspensions and government interventions (including by
nationalizing assets); currency exchange rate fluctuations or blockages; limits
on using brokers and on foreign ownership; different financial reporting
standards; higher dependence on exports and international trade; political and
social instability; infectious disease outbreaks; regional and global conflicts;
increased trade tariffs, embargoes, and other trade limitations; custody and
other risks associated with programs used to access Chinese securities; and
uncertainties in tax rules that could result in unexpected tax liabilities for
the Fund. Significant portions of the Chinese securities markets may become
rapidly illiquid, as Chinese issuers have the ability to suspend the trading of
their equity securities. Moreover, actions by the U.S. government, such as
delisting of certain Chinese companies from U.S. securities exchanges or
otherwise restricting their operations in the U.S., may negatively impact the
value of such securities held by the Fund.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk. Growth investing entails the risk that if growth companies do not
increase their earnings at a rate expected by investors, the market price of
their stock may decline significantly, even if earnings show an absolute
increase. Growth company stocks also typically lack the dividend yield that can
lessen price declines in market downturns.
•Smaller
Companies Risk. Investments in smaller companies may involve greater risk and price
volatility than investments in larger, more mature companies. Smaller companies
may have limited product lines, markets, or financial resources; lack the
competitive strength of larger companies; have less experienced managers; or
depend on a few key employees. Their securities often are less widely held and
trade less frequently and in lesser quantities, and their market prices often
fluctuate more, than securities of larger companies.
•Value
Style Risk. Value investing entails the risk that
value stocks may continue to be undervalued by the market for extended periods,
including the entire period during which the stock is held by a fund, or the
events that would cause the stock price to increase may not occur as anticipated
or at all. Moreover, a stock that appears to be undervalued actually may be
appropriately priced at a low level and, therefore, would not be profitable for
the fund.
Foreign
Currency Risk. Risks of investing in securities denominated in, or that trade in,
foreign (non-U.S.) currencies include changes in foreign exchange rates and
foreign exchange restrictions.
Foreign
Securities Risk. The risks of foreign securities include loss of value as a result
of: political or economic instability; nationalization, expropriation, or
confiscatory taxation; settlement delays; and limited government regulation
(including less stringent reporting, accounting, and disclosure standards than
are required of U.S. companies).
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
For
periods prior to the inception date of Class R-6 shares (November 22, 2016), the
performance shown in the table for Class R-6 shares is that of the Fund’s
Institutional Class shares, adjusted to reflect the fees and expenses of Class
R-6 shares. These adjustments result in performance for such periods that is no
higher than the historical performance of the Institutional Class
shares.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
22.05 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(22.85) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Institutional Class Return Before
Taxes |
15.86% |
7.99% |
4.30% |
Institutional Class Return After Taxes
on Distributions |
14.96% |
6.64% |
3.35% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
9.86% |
6.42% |
3.42% |
Class R-1
Return Before Taxes |
14.86% |
7.13% |
3.46% |
Class R-3
Return Before Taxes |
15.32% |
7.47% |
3.78% |
Class R-4
Return Before Taxes |
15.53% |
7.70% |
3.99% |
Class R-5
Return Before Taxes |
15.64% |
7.80% |
4.10% |
Class R-6
Return Before Taxes |
15.97% |
8.10% |
4.34% |
MSCI ACWI
Ex USA Index NTR (reflects withholding taxes
on foreign dividends, but no deduction for fees, expenses, or other
taxes) |
15.62% |
7.08% |
3.83% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Investment
Advisor
Principal
Global Investors, LLC
Sub-Advisor
and Portfolio Managers
Origin
Asset Management LLP
•Chris
Carter (since 2014), Partner
•Tarlock
Randhawa (since 2014), Managing Partner
•Nerys
Weir (since 2021), Portfolio Manager
Purchase
and Sale of Fund Shares
For
Classes R-1, R-3, R-4, R-5, R-6, and Institutional Class shares, there are no
minimum initial or subsequent investment requirements for eligible purchasers.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
LARGECAP GROWTH
FUND I
Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$50,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
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A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.50% |
None |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
None |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
|
A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Management
Fees |
0.60% |
0.60% |
0.60% |
0.60% |
0.60% |
0.60% |
0.60% |
0.60% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
N/A |
Other
Expenses |
0.17% |
0.09% |
0.10% |
0.54% |
0.33% |
0.29% |
0.27% |
0.01% |
Total
Annual Fund Operating Expenses |
1.02% |
0.84% |
0.70% |
1.49% |
1.18% |
0.99% |
0.87% |
0.61% |
Fee
Waiver (1) |
(0.02)% |
(0.02)% |
(0.02)% |
(0.02)% |
(0.02)% |
(0.02)% |
(0.02)% |
(0.02)% |
Total
Annual Fund Operating Expenses after Fee Waiver |
1.00% |
0.82% |
0.68% |
1.47% |
1.16% |
0.97% |
0.85% |
0.59% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to waive a portion of the Fund's management fees through the period ending
February 28,
2025. The fee waiver will reduce the Fund's management fees by
0.016% (expressed as a percent of average net assets on an annualized basis). It
is expected that the fee waiver will continue through the period disclosed;
however, Principal Funds, Inc. and PGI, the parties to the agreement may
mutually agree to terminate the fee waiver prior to the end of the
period.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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| 1
year |
3
years |
5
years |
10
years |
Class
A |
$646 |
$855 |
$1,080 |
$1,727 |
Class
J |
184 |
266 |
464 |
1,035 |
Institutional
Class |
69 |
222 |
388 |
869 |
Class
R-1 |
150 |
469 |
811 |
1,778 |
Class
R-3 |
118 |
373 |
647 |
1,430 |
Class
R-4 |
99 |
313 |
545 |
1,211 |
Class
R-5 |
87 |
276 |
480 |
1,071 |
Class
R-6 |
60 |
193 |
338 |
760
|
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
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| 1
year |
3
years |
5
years |
10
years |
Class
J |
$84 |
$266 |
$464 |
$1,035 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
26.5% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in equity securities of companies with large
market capitalizations at the time of purchase. For this Fund, companies with
large market capitalizations are those with market capitalizations within the
range of companies comprising the Russell 1000®
Growth Index (as of January 31, 2024, this range was between approximately
$684.1 million and $3.0 trillion). The Fund also invests in growth equity
securities, an investment strategy that emphasizes buying equity securities of
companies whose potential for growth of capital and earnings is expected to be
above average, and equity securities of companies with medium market
capitalizations. The Fund invested significantly in industries within the health
care and information technology sectors as of January 31, 2024.
The
Fund is primarily actively managed by the sub-advisors. In addition, Principal
Global Investors, LLC may invest up to 30% of the Fund’s assets using an index
sampling strategy designed to match the performance of the Russell
1000®
Growth Index.
The Fund is considered non-diversified, which means it can invest a
higher percentage of assets in securities of individual issuers than a
diversified fund. As a result, changes in the value of a single investment could
cause greater fluctuations in the Fund’s share price than would occur in a more
diversified fund.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Consumer
Goods and Consumer Services Sector Risk. The Fund invests in securities of companies in the consumer services
and consumers goods sectors. Such companies are particularly subject to risks
related to performance of the overall global economy, interest rates,
competition, government regulation, and consumer confidence. Success depends
heavily on disposable income and consumer spending, and is also impacted by
consumer interest and marketing campaigns. Companies in these sectors may be
subject to severe competition, which may have an adverse impact on their
profitability. Changes in demographics and consumer tastes can affect the demand
for, and success of, consumer goods and services in the
marketplace.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk. Growth investing entails the risk that if growth companies do not
increase their earnings at a rate expected by investors, the market price of
their stock may decline significantly, even if earnings show an absolute
increase. Growth company stocks also typically lack the dividend yield that can
lessen price declines in market downturns.
•Smaller
Companies Risk. Investments in smaller companies may
involve greater risk and price volatility than investments in larger, more
mature companies. Smaller companies may have limited product lines, markets, or
financial resources; lack the competitive strength of larger companies; have
less experienced managers; or depend on a few key employees. Their securities
often are less widely held and trade less frequently and in lesser quantities,
and their market prices often fluctuate more, than securities of larger
companies.
Health
Care Sector Risk. A
fund that invests in securities of companies in the healthcare sector (which
includes companies involved in several industries, including biotechnology
research and production, drugs and pharmaceuticals and health care facilities
and services) is subject to the direct risks of investing in such companies.
These companies are subject to extensive competition (due to, among others,
generic drug sales or the loss of patent protection), product liability
litigation and increased government regulation. Research and development costs
of bringing new drugs to market are substantial, and there is no guarantee that
a proposed product will ever come to market. Such companies are heavily
dependent on patent and intellectual property rights, the loss or impairment of
which may adversely affect profitability. Healthcare facility operators may be
affected by the demand for services, efforts by government or insurers to limit
rates, restriction of government financial assistance and competition from other
providers.
Information
Technology Sector Risk. Companies
in the information technology sector may face dramatic and often unpredictable
changes in growth rates and are particularly vulnerable to changes in technology
product cycles, product obsolescence, government regulation, and competition,
both domestically and internationally. Such companies are heavily dependent on
patent and intellectual property rights, the loss or impairment of which may
adversely affect profitability.
Non-Diversification
Risk. A non-diversified fund may invest a high percentage of its assets in
the securities of a small number of issuers and is more likely than diversified
funds to be significantly affected by a specific security’s poor
performance.
Passive
Strategy Risk. A portion of the Fund seeks to match the performance of a specified
index. However, the correlation between the performance of this portion of the
Fund and index performance may be affected by many factors, such as Fund
expenses, the timing of cash flows into and out of the Fund, changes in
securities markets, and changes in the composition of the
index.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect sales charges on Class A shares; if
they did, results would be lower. The table shows for the last one, five, and
ten calendar year periods (or, if shorter, the life of the Fund), how the Fund’s
average annual total returns compare with those of one or more broad measures of
market performance.
For
periods prior to the inception date of Class R-6 shares (November 25, 2014), the
performance shown in the table for Class R-6 shares is that of the Fund’s
Institutional Class shares, adjusted to reflect the fees and expenses of Class
R-6 shares. These adjustments result in performance for such periods that is no
higher than the historical performance of the Institutional Class
shares.
Total Returns as of
December 31
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Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
27.72 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q2
2022 |
(21.61) |
% |
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Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
32.35% |
14.00% |
11.91% |
Class A
Return After Taxes on Distributions |
30.41% |
11.60% |
9.50% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
20.49% |
10.91% |
9.15% |
Class J
Return Before Taxes |
39.31% |
15.49% |
12.81% |
Institutional Class Return Before
Taxes |
40.51% |
15.65% |
13.03% |
Class R-1
Return Before Taxes |
39.42% |
14.72% |
12.11% |
Class R-3
Return Before Taxes |
39.79% |
15.10% |
12.46% |
Class R-4
Return Before Taxes |
40.13% |
15.32% |
12.67% |
Class R-5
Return Before Taxes |
40.23% |
15.46% |
12.81% |
Class R-6
Return Before Taxes |
40.60% |
15.74% |
13.08% |
Russell
1000 Index (reflects no deduction for
fees, expenses, or taxes) |
26.53% |
15.52% |
11.80% |
Russell
1000 Growth Index (reflects no deduction for
fees, expenses, or taxes) |
42.68% |
19.50% |
14.86% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Russell 1000 Index in order to meet
the revised definition of “broad-based securities market index.”
The Russell 1000 Growth Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2009), Portfolio Manager
• Randy
L. Welch (since 2009), Portfolio Manager
Sub-Advisors
Brown
Advisory, LLC
T.
Rowe Price Associates, Inc.
Purchase
and Sale of Fund Shares
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Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A
and J |
Initial
Investment |
$1,000(1) |
A
and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A
and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, R-5, and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchases. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
LARGECAP S&P 500
INDEX FUND
Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$50,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
|
A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
1.50% |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
0.25% |
1.00% |
None |
None |
None |
None |
None |
Annual Fund
Operating Expenses
(expenses that you pay each year as a percentage of the
value of your investment)
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Share
Class |
|
A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees
(1) |
0.10% |
0.10% |
0.10% |
0.10% |
0.10% |
0.10% |
0.10% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.13% |
0.07% |
0.02% |
0.53% |
0.32% |
0.28% |
0.26% |
Total
Annual Fund Operating Expenses |
0.38% |
0.32% |
0.12% |
0.98% |
0.67% |
0.48% |
0.36% |
(1) Fees
have been restated to reflect current fees.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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|
1
year |
3
years |
5
years |
10
years |
Class
A |
$188 |
$270 |
$360 |
$623 |
Class
J |
133 |
103 |
180 |
406 |
Institutional
Class |
12 |
39 |
68 |
154 |
Class
R-1 |
100 |
312 |
542 |
1,201 |
Class
R-3 |
68 |
214 |
373 |
835 |
Class
R-4 |
49 |
154 |
269 |
604 |
Class
R-5 |
37 |
116 |
202 |
456
|
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
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| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
33 |
103 |
180 |
406
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
5.9% of the average value of its
portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in equity securities of companies that
compose the Standard & Poor’s (“S&P”) 500 Index (the “Index”) at the
time of purchase. The Index is designed to represent U.S.
equities with risk/return characteristics of the large cap universe. As of
January 31, 2024, the market capitalization range of the companies
comprising the Index was between approximately $4.9 billion and $3.0 trillion.
Each component stock of the Index is weighted in proportion to its total market
value. The Index is rebalanced quarterly.
The
Fund employs a passive investment approach designed to attempt to track the
performance of the Index. In seeking its objective, the Fund typically employs a
replication strategy, which involves investing in all the securities that make
up the Index, in the same proportions as the Index.
The
Fund uses derivative strategies and invests in exchange-traded funds (“ETFs”). A
derivative is a financial arrangement, the value of which is derived from, or
based on, a traditional security, asset, or market index. Specifically, the Fund
invests in index futures and equity ETFs on a daily basis to gain exposure to
the Index in an effort to minimize tracking error relative to the
benchmark.
The
Fund will not concentrate (i.e., invest more than 25% of its assets) its
investments in a particular industry except to the extent the Index is so
concentrated. As of January 31, 2024, the Index was not concentrated in any
industry.
Note: “Standard
& Poor’s 500” and “S&P 500” are trademarks of S&P Global and have
been licensed by Principal. The Fund is not sponsored, endorsed, sold, or
promoted by S&P Global, and S&P Global makes no representation regarding
the advisability of investing in the Fund.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Futures.
Futures contracts involve specific
risks, including: the imperfect correlation between the change in market value
of the instruments held by the Fund and the price of the futures contract;
possible lack of a liquid secondary market for a futures contract and the
resulting inability to close a futures contract when desired; counterparty risk;
and if the Fund has insufficient cash, it may have to sell securities from its
portfolio to meet daily variation margin
requirements.
Equity
Securities Risk. A variety of factors can negatively impact the value of equity
securities held by a fund, including a decline in the issuer’s financial
condition, unfavorable performance of the issuer’s sector or industry, or
changes in response to overall market and economic conditions. A fund’s
principal market segment(s) (such as market capitalization or style) may
underperform other market segments or the equity markets as a
whole.
Index
Fund Risk. Index funds use a passive investment approach and generally do not
attempt to manage market volatility, use defensive strategies, or reduce the
effect of any long-term periods of poor investment performance. Therefore, the
Fund may hold securities that present risks that an investment advisor
researching individual securities might seek to avoid. An index fund has
operating and other expenses while an index does not. As a result, over time,
index funds tend to underperform the index. The correlation between fund
performance and index performance may also be affected by the type of passive
investment approach used by a fund (sampling or replication), changes in
securities markets, changes in the composition of the index, and the timing of
purchases and sales of fund shares. Errors or delays in compiling or rebalancing
the Index may impact the performance of the Fund and increase transaction
costs.
Industry
Concentration Risk. A fund that concentrates investments in a particular industry or
group of industries has greater exposure than other funds to market, economic,
and other factors affecting that industry or group of
industries.
Investment
Company Securities Risk. A fund that invests in another investment company (for example,
another fund or an exchange-traded fund (or ETF)) is subject to the risks
associated with direct ownership of the securities in which such investment
company invests. Fund shareholders indirectly bear their proportionate share of
the expenses of each such investment company.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect sales charges on Class A shares; if
they did, results would be lower. The table shows for the last one, five, and
ten calendar year periods (or, if shorter, the life of the Fund), how the Fund’s
average annual total returns compare with those of one or more broad measures of
market performance.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
20.38 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(19.67) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
23.88% |
14.84% |
11.35% |
Class A
Return After Taxes on Distributions |
22.75% |
13.21% |
10.03% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
14.92% |
11.74% |
9.11% |
Class J
Return Before Taxes |
24.83% |
15.27% |
11.59% |
Institutional Class Return Before
Taxes |
26.03% |
15.48% |
11.84% |
Class R-1
Return Before Taxes |
24.94% |
14.48% |
10.87% |
Class R-3
Return Before Taxes |
25.30% |
14.83% |
11.21% |
Class R-4
Return Before Taxes |
25.57% |
15.06% |
11.43% |
Class R-5
Return Before Taxes |
25.75% |
15.20% |
11.57% |
S&P
500 Index (reflects no deduction for
fees, expenses, or taxes) |
26.29% |
15.69% |
12.03% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
•Tyler
O’Donnell (since 2023), Portfolio Manager
•Aaron
J. Siebel (since 2018), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A
and J |
Initial
Investment |
$1,000(1) |
A
and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A
and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, and R-5 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances.
Effective
as of the close of the New York Stock Exchange on March 24, 2023, Class C shares
will no longer be available for purchase except in limited circumstances.
See
Purchase of Fund Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
LARGECAP VALUE FUND
III
Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.76% |
0.76% |
0.76% |
0.76% |
0.76% |
0.76% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.18% |
0.03% |
0.54% |
0.33% |
0.29% |
0.27% |
Total
Annual Fund Operating Expenses |
1.09% |
0.79% |
1.65% |
1.34% |
1.15% |
1.03% |
Fee
Waiver
(1) |
(0.07)% |
(0.07)% |
(0.07)% |
(0.07)% |
(0.07)% |
(0.07)% |
Total
Annual Fund Operating Expenses after Fee Waiver |
1.02% |
0.72% |
1.58% |
1.27% |
1.08% |
0.96% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to waive a portion of the Fund's management fees through the period ending
February 28,
2025. The fee waiver will reduce the Fund's management fees by
0.065% (expressed as a percent of average net assets on an annualized basis). It
is expected that the fee waiver will continue through the period disclosed;
however, Principal Funds, Inc. and PGI, the parties to the agreement may
mutually agree to terminate the fee waiver prior to the end of the
period.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$204 |
$340 |
$594 |
$1,322 |
Institutional
Class |
74 |
245 |
432 |
971 |
Class
R-1 |
161 |
514 |
890 |
1,949 |
Class
R-3 |
129 |
418 |
727 |
1,607 |
Class
R-4 |
110 |
358 |
626 |
1,391 |
Class
R-5 |
98 |
321 |
562 |
1,253 |
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$104 |
$340 |
$594 |
$1,322 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
44.9% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in companies with large market
capitalizations at the time of purchase. For this Fund, companies with large
market capitalizations are those with market capitalizations within the range of
companies comprising the Russell 1000®
Value Index (as of January 31, 2024, this range was between approximately
$353.3 million and $837.9 billion). The Fund invests in value equity securities,
an investment strategy that emphasizes buying equity securities that appear to
be undervalued. The Fund also invests in equity securities of companies with
medium market capitalizations.
The
Fund is primarily actively managed by the sub-advisors. In addition, Principal
Global Investors, LLC may invest up to 30% of the Fund’s assets using an index
sampling strategy designed to match the performance of the Russell
1000®
Value Index.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Smaller
Companies Risk. Investments in smaller companies may involve greater risk and price
volatility than investments in larger, more mature companies. Smaller companies
may have limited product lines, markets, or financial resources; lack the
competitive strength of larger companies; have less experienced managers; or
depend on a few key employees. Their securities often are less widely held and
trade less frequently and in lesser quantities, and their market prices often
fluctuate more, than securities of larger companies.
•Value
Style Risk. Value investing entails the risk that
value stocks may continue to be undervalued by the market for extended periods,
including the entire period during which the stock is held by a fund, or the
events that would cause the stock price to increase may not occur as anticipated
or at all. Moreover, a stock that appears to be undervalued actually may be
appropriately priced at a low level and, therefore, would not be profitable for
the fund.
Passive
Strategy Risk. A portion of the Fund seeks to match the performance of a specified
index. However, the correlation between the performance of this portion of the
Fund and index performance may be affected by many factors, such as Fund
expenses, the timing of cash flows into and out of the Fund, changes in
securities markets, and changes in the composition of the
index.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q4
2020 |
16.32 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(26.91) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Institutional Class Return Before
Taxes |
9.97% |
11.13% |
8.81% |
Institutional Class Return After Taxes
on Distributions |
9.13% |
9.54% |
7.21% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
6.49% |
8.67% |
6.81% |
Class J
Return Before Taxes |
8.68% |
10.80% |
8.47% |
Class R-1
Return Before Taxes |
9.01% |
10.17% |
7.87% |
Class R-3
Return Before Taxes |
9.39% |
10.51% |
8.20% |
Class R-4
Return Before Taxes |
9.55% |
10.72% |
8.41% |
Class R-5
Return Before Taxes |
9.72% |
10.86% |
8.54% |
Russell
1000 Index (reflects no deduction for
fees, expenses, or taxes) |
26.53% |
15.52% |
11.80% |
Russell
1000 Value Index (reflects no deduction for
fees, expenses, or taxes) |
11.46% |
10.91% |
8.40% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Russell 1000 Index in order to meet
the revised definition of “broad-based securities market index.”
The Russell 1000 Value Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2009), Portfolio Manager
• Randy
L. Welch (since 2009), Portfolio Manager
Sub-Advisors
Barrow,
Hanley, Mewhinney & Strauss, LLC (doing business as Barrow Hanley Global
Investors)
Westwood
Management Corp.
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, and R-5 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
MIDCAP
FUND
Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
You may
qualify for sales charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
|
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|
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| |
|
Share
Class |
|
A |
C |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.50% |
None |
None |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
1.00% |
None |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
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| |
|
Share
Class |
|
A |
C |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Management
Fees |
0.58% |
0.58% |
0.58% |
0.58% |
0.58% |
0.58% |
0.58% |
0.58% |
0.58% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
1.00% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
N/A |
Other
Expenses |
0.12% |
0.20% |
0.09% |
0.10% |
0.53% |
0.32% |
0.28% |
0.26% |
0.02% |
Total
Annual Fund Operating Expenses |
0.95% |
1.78% |
0.82% |
0.68% |
1.46% |
1.15% |
0.96% |
0.84% |
0.60% |
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example assumes conversion of the Class
C shares to Class A shares after the eighth year. The Example also assumes that
your investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
A |
$642 |
$836 |
$1,047 |
$1,652 |
Class
C |
281 |
560 |
964 |
1,876 |
Class
J |
184 |
262 |
455 |
1,014 |
Institutional
Class |
69 |
218 |
379 |
847 |
Class
R-1 |
149 |
462 |
797 |
1,746 |
Class
R-3 |
117 |
365 |
633 |
1,398 |
Class
R-4 |
98 |
306 |
531 |
1,178 |
Class
R-5 |
86 |
268 |
466 |
1,037 |
Class
R-6 |
61 |
192 |
335 |
750
|
With respect to Classes C and
J shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
C |
$181 |
$560 |
$964 |
$1,876 |
Class
J |
84 |
262 |
455 |
1,014 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
10.1% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in equity securities of companies with
medium market capitalizations at the time of purchase. For this
Fund, companies with medium market capitalizations are those with market
capitalizations within the range of companies comprising the Russell
MidCap® Index (as of January 31, 2024, this range was between
approximately $353.3 million and $76.6 billion). The Fund also invests in
foreign securities.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
Foreign
Securities Risk. The risks of foreign securities include loss of value as a result
of: political or economic instability; nationalization, expropriation, or
confiscatory taxation; settlement delays; and limited government regulation
(including less stringent reporting, accounting, and disclosure standards than
are required of U.S. companies).
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect
sales charges on Class A shares; if they did, results would be
lower. The table shows for the last one, five, and ten calendar
year periods (or, if shorter, the life of the Fund), how the Fund’s average
annual total returns compare with those of one or more broad measures of market
performance.
For
periods prior to the inception date of Class R-6 shares (November 22, 2016), the
performance shown in the table for Class R-6 shares is that of the Fund’s Class
R-3 shares, adjusted to reflect the fees and expenses of Class R-6 shares.
However, where the adjustment for fees and expenses results in performance for
Class R-6 shares that is higher than the historical performance of the Class R-3
shares, the historical performance of the Class R-3 shares is used. These
adjustments result in performance for such periods that is no higher than the
historical performance of the Class R-3 shares.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
24.72 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(23.89) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
18.63% |
13.81% |
10.73% |
Class A
Return After Taxes on Distributions |
17.91% |
12.77% |
9.51% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
11.53% |
11.01% |
8.52% |
Class C
Return Before Taxes |
23.51% |
14.23% |
10.71% |
Class J
Return Before Taxes |
24.70% |
15.29% |
11.53% |
Institutional Class Return Before
Taxes |
25.87% |
15.41% |
11.68% |
Class R-1
Return Before Taxes |
24.89% |
14.51% |
10.81% |
Class R-3
Return Before Taxes |
25.30% |
14.87% |
11.16% |
Class R-4
Return Before Taxes |
25.53% |
15.09% |
11.36% |
Class R-5
Return Before Taxes |
25.65% |
15.23% |
11.50% |
Class R-6
Return Before Taxes |
25.97% |
15.52% |
11.59% |
Russell
3000 Index (reflects no deduction for
fees, expenses, or taxes) |
25.96% |
15.16% |
11.48% |
Russell
MidCap Index (reflects no deduction for
fees, expenses, or taxes) |
17.23% |
12.68% |
9.42% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Russell 3000 Index in order to meet
the revised definition of “broad-based securities market index.”
The Russell MidCap Index is included
as an additional index for the Fund as it shows how the Fund’s performance
compares with the returns of an index of funds with similar investment
objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• K.
William Nolin (since 2000), Portfolio Manager
• Tom
Rozycki (since 2013), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A,
C, and J |
Initial
Investment |
$1,000(1) |
A,
C, and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A,
C, and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, R-5, and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
For
retail investors (i.e., non-employer sponsored retirement plan investors),
effective as of the close of the New York Stock Exchange on June 14, 2013, and
for employer-sponsored retirement plan investors, effective as of the close of
the New York Stock Exchange on August 15, 2013, the MidCap Fund is no longer
available for purchases from new investors, except in limited
circumstances.
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances.
Class
C shares are subject to an 8-year automatic conversion plan whereby Class C
shares held for eight years after purchase will automatically convert to Class A
shares of the same Fund.
See
Purchase of Fund Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
MIDCAP GROWTH
FUND
Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Maximum
Deferred Sales Charge (Load)
(as
a percentage of the offering price or NAV when Sales Load is paid,
whichever is less) |
1.00% |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.65% |
0.65% |
0.65% |
0.65% |
0.65% |
0.65% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.15% |
0.14% |
0.55% |
0.34% |
0.30% |
0.28% |
Total
Annual Fund Operating Expenses |
0.95% |
0.79% |
1.55% |
1.24% |
1.05% |
0.93% |
Expense
Reimbursement (1) |
N/A |
(0.04)% |
N/A |
N/A |
N/A |
N/A |
Total
Annual Fund Operating Expenses after Expense Reimbursement |
0.95% |
0.75% |
1.55% |
1.24% |
1.05% |
0.93% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.75% for Institutional Class shares. It is expected that the expense
limit will continue through the period ending February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limit prior to the end of
the period. Subject to applicable expense limits, the Fund may reimburse PGI for
expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$197 |
$303 |
$525 |
$1,166 |
Institutional
Class |
77 |
248 |
435 |
974 |
Class
R-1 |
158 |
490 |
845 |
1,845 |
Class
R-3 |
126 |
393 |
681 |
1,500 |
Class
R-4 |
107 |
334 |
579 |
1,283 |
Class
R-5 |
95 |
296 |
515 |
1,143 |
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$97 |
$303 |
$525 |
$1,166 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
181.4% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in equity securities of companies with
medium market capitalizations at the time of purchase. For this
Fund, companies with medium market capitalizations are those with market
capitalizations within the range of companies comprising the Russell
MidCap®
Growth Index (as of January 31, 2024, this range was between approximately
$684.1 million and $76.6 billion). The Fund invests in growth equity securities,
an investment strategy that emphasizes buying equity securities of companies
whose potential for growth of capital and earnings is expected to be above
average. The Fund’s strategies may result in the active and frequent trading of
the Fund’s portfolio securities.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk. Growth investing entails the risk that if growth companies do not
increase their earnings at a rate expected by investors, the market price of
their stock may decline significantly, even if earnings show an absolute
increase. Growth company stocks also typically lack the dividend yield that can
lessen price declines in market downturns.
•Smaller
Companies Risk. Investments in smaller companies may
involve greater risk and price volatility than investments in larger, more
mature companies. Smaller companies may have limited product lines, markets, or
financial resources; lack the competitive strength of larger companies; have
less experienced managers; or depend on a few key employees. Their securities
often are less widely held and trade less frequently and in lesser quantities,
and their market prices often fluctuate more, than securities of larger
companies.
High
Portfolio Turnover Risk. High portfolio turnover (more than 100%) caused by active and
frequent trading of portfolio securities may result in accelerating the
realization of taxable gains and losses, lower fund performance, and increased
brokerage costs.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
38.05 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q4
2018 |
(22.62) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Institutional Class Return Before
Taxes |
13.83% |
13.38% |
10.02% |
Institutional Class Return After Taxes
on Distributions |
13.83% |
11.62% |
7.83% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
8.18% |
10.66% |
7.49% |
Class J
Return Before Taxes |
12.64% |
13.18% |
9.75% |
Class R-1
Return Before Taxes |
12.91% |
12.45% |
9.13% |
Class R-3
Return Before Taxes |
13.26% |
12.80% |
9.47% |
Class R-4
Return Before Taxes |
13.48% |
13.02% |
9.68% |
Class R-5
Return Before Taxes |
13.55% |
13.13% |
9.80% |
Russell
3000 Index (reflects no deduction for
fees, expenses, or taxes) |
25.96% |
15.16% |
11.48% |
Russell
MidCap Growth Index (reflects no deduction for
fees, expenses, or taxes) |
25.87% |
13.81% |
10.57% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Russell 3000 Index in order to meet
the revised definition of “broad-based securities market index.”
The Russell MidCap Growth Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
•Christopher
T. Corbett (since 2017), Portfolio Manager
•Marc
R. Shapiro (since 2020), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, and R-5 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
MIDCAP GROWTH FUND
III
Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Maximum
Deferred Sales Charge (Load)
(as
a percentage of the offering price or NAV when Sales Load is paid,
whichever is less) |
1.00% |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.81% |
0.81% |
0.81% |
0.81% |
0.81% |
0.81% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.21% |
0.01% |
0.54% |
0.33% |
0.29% |
0.27% |
Total
Annual Fund Operating Expenses |
1.17% |
0.82% |
1.70% |
1.39% |
1.20% |
1.08% |
Fee
Waiver
(1) |
(0.02)% |
(0.02)% |
(0.02)% |
(0.02)% |
(0.02)% |
(0.02)% |
Total
Annual Fund Operating Expenses after Fee Waiver |
1.15% |
0.80% |
1.68% |
1.37% |
1.18% |
1.06% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to waive a portion of the Fund's management fees through the period ending
February 28
2025. The fee waiver will reduce the Fund's management fees by
0.02% (expressed as a percent of average net assets on an annualized basis). It
is expected that the fee waiver will continue through the period disclosed;
however, Principal Funds, Inc. and PGI, the parties to the agreement may
mutually agree to terminate the fee waiver prior to the end of the
period.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$217 |
$370 |
$642 |
$1,419 |
Institutional
Class |
82 |
260 |
453 |
1,012 |
Class
R-1 |
171 |
534 |
921 |
2,007 |
Class
R-3 |
139 |
438 |
759 |
1,667 |
Class
R-4 |
120 |
379 |
658 |
1,453 |
Class
R-5 |
108 |
341 |
594 |
1,315 |
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$117 |
$370 |
$642 |
$1,419 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
49.4% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in equity securities of companies with
medium market capitalizations at the time of purchase. For this
Fund, companies with medium market capitalizations are those with market
capitalizations within the range of companies comprising the Russell
MidCap®
Growth Index (as of January 31, 2024, this range was between approximately
$684.1 million and $76.6 billion). The Fund invests in growth equity securities,
an investment strategy that emphasizes buying equity securities of companies
whose potential for growth of capital and earnings is expected to be above
average.
The
Fund is primarily actively managed by the sub-advisors. In addition, Principal
Global Investors, LLC may invest up to 30% of the Fund’s assets using an index
sampling strategy designed to match the performance of the Russell
MidCap®
Growth Index.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk. Growth investing entails the risk that if growth companies do not
increase their earnings at a rate expected by investors, the market price of
their stock may decline significantly, even if earnings show an absolute
increase. Growth company stocks also typically lack the dividend yield that can
lessen price declines in market downturns.
•Smaller
Companies Risk. Investments in smaller companies may
involve greater risk and price volatility than investments in larger, more
mature companies. Smaller companies may have limited product lines, markets, or
financial resources; lack the competitive strength of larger companies; have
less experienced managers; or depend on a few key employees. Their securities
often are less widely held and trade less frequently and in lesser quantities,
and their market prices often fluctuate more, than securities of larger
companies.
Passive
Strategy Risk. A portion of the Fund seeks to match the performance of a specified
index. However, the correlation between the performance of this portion of the
Fund and index performance may be affected by many factors, such as Fund
expenses, the timing of cash flows into and out of the Fund, changes in
securities markets, and changes in the composition of the
index.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
30.62 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(20.02) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Institutional Class Return Before
Taxes |
20.59% |
13.64% |
9.54% |
Institutional Class Return After Taxes
on Distributions |
18.65% |
11.25% |
6.87% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
13.51% |
10.76% |
6.96% |
Class J
Return Before Taxes |
19.14% |
13.27% |
9.16% |
Class R-1
Return Before Taxes |
19.65% |
12.65% |
8.58% |
Class R-3
Return Before Taxes |
20.03% |
13.00% |
8.92% |
Class R-4
Return Before Taxes |
20.18% |
13.22% |
9.13% |
Class R-5
Return Before Taxes |
20.30% |
13.33% |
9.26% |
Russell
3000 Index (reflects no deduction for
fees, expenses, or taxes) |
25.96% |
15.16% |
11.48% |
Russell
MidCap Growth Index (reflects no deduction for
fees, expenses, or taxes) |
25.87% |
13.81% |
10.57% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Russell 3000 Index in order to meet
the revised definition of “broad-based securities market index.”
The Russell MidCap Growth Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2009), Portfolio Manager
• Randy
L. Welch (since 2009), Portfolio Manager
Sub-Advisors
Eagle
Asset Management, Inc.
Robert
W. Baird & Co. Incorporated
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, and R-5 |
There
are no minimum initial or subsequent investment requirements for eligible
purchases. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
MIDCAP S&P 400
INDEX FUND
Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
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| |
|
Share
Class |
|
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or
NAV when Sales Load is paid, whichever is less) |
1.00% |
None |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
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|
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| |
|
Share
Class |
|
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Management
Fees |
0.15% |
0.15% |
0.15% |
0.15% |
0.15% |
0.15% |
0.15% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A
|
N/A |
Other
Expenses |
0.12% |
0.10% |
0.54% |
0.33% |
0.29% |
0.27% |
0.01% |
Total
Annual Fund Operating Expenses |
0.42% |
0.25% |
1.04% |
0.73% |
0.54% |
0.42% |
0.16% |
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$143 |
$135 |
$235 |
$530 |
Institutional
Class |
26 |
80 |
141 |
318 |
Class
R-1 |
106 |
331 |
574 |
1,271 |
Class
R-3 |
75 |
233 |
406 |
906 |
Class
R-4 |
55 |
173 |
302 |
677 |
Class
R-5 |
43 |
135 |
235 |
530 |
Class
R-6 |
16 |
52 |
90 |
205
|
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$43 |
$135 |
$235 |
$530
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
20.4% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in equity securities of companies that
compose the Standard & Poor’s (“S&P”) MidCap 400 Index (the “Index”) at
the time of purchase. The Index is designed to represent U.S.
equities with risk/return characteristics of the mid cap universe. As of
January 31, 2024, the market capitalization range of the companies
comprising the Index was between approximately $1.4 billion and $28.2 billion.
Each component stock of the Index is weighted in proportion to its total market
value. The Index is rebalanced quarterly.
The
Fund employs a passive investment approach designed to attempt to track the
performance of the Index. In seeking its objective, the Fund typically employs a
replication strategy, which involves investing in all the securities that make
up the Index, in the same proportions as the Index.
The
Fund uses derivative strategies and invests in exchange-traded funds (“ETFs”). A
derivative is a financial arrangement, the value of which is derived from, or
based on, a traditional security, asset, or market index. Specifically, the Fund
invests in index futures and equity ETFs on a daily basis to gain exposure to
the Index in an effort to minimize tracking error relative to the
benchmark.
The
Fund will not concentrate (i.e., invest more than 25% of its assets) its
investments in a particular industry except to the extent the Index is so
concentrated. As of January 31, 2024, the Index was not concentrated in any
industry.
Note: “Standard
& Poor’s MidCap 400” and “S&P MidCap 400” are trademarks of S&P
Global and have been licensed by Principal. The Fund is not sponsored, endorsed,
sold, or promoted by S&P Global, and S&P Global makes no representation
regarding the advisability of investing in the
Fund.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Futures.
Futures contracts involve specific
risks, including: the imperfect correlation between the change in market value
of the instruments held by the Fund and the price of the futures contract;
possible lack of a liquid secondary market for a futures contract and the
resulting inability to close a futures contract when desired; counterparty risk;
and if the Fund has insufficient cash, it may have to sell securities from its
portfolio to meet daily variation margin
requirements.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
Index
Fund Risk. Index funds use a passive investment approach and generally do not
attempt to manage market volatility, use defensive strategies, or reduce the
effect of any long-term periods of poor investment performance. Therefore, the
Fund may hold securities that present risks that an investment advisor
researching individual securities might seek to avoid. An index fund has
operating and other expenses while an index does not. As a result, over time,
index funds tend to underperform the index. The correlation between fund
performance and index performance may also be affected by the type of passive
investment approach used by a fund (sampling or replication), changes in
securities markets, changes in the composition of the index, and the timing of
purchases and sales of fund shares. Errors or delays in compiling or rebalancing
the Index may impact the performance of the Fund and increase transaction
costs.
Industry
Concentration Risk. A fund that concentrates investments in a particular industry or
group of industries has greater exposure than other funds to market, economic,
and other factors affecting that industry or group of
industries.
Investment
Company Securities Risk. A fund that invests in another investment company (for example,
another fund or an exchange-traded fund (or ETF)) is subject to the risks
associated with direct ownership of the securities in which such investment
company invests. Fund shareholders indirectly bear their proportionate share of
the expenses of each such investment company.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
For
periods prior to the inception date of Class R-6 shares (November 22, 2016), the
performance shown in the table for Class R-6 shares is that of the Fund’s Class
R-3 shares, adjusted to reflect the fees and expenses of Class R-6 shares.
However, where the adjustment for fees and expenses results in performance for
Class R-6 shares that is higher than the historical performance of the Class R-3
shares, the historical performance of the Class R-3 shares is used. These
adjustments result in performance for such periods that is no higher than the
historical performance of the Class R-3 shares.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q4
2020 |
24.32 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(29.79) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Institutional Class Return Before
Taxes |
16.16% |
12.38% |
9.02% |
Institutional Class Return After Taxes
on Distributions |
15.12% |
10.60% |
7.19% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
10.23% |
9.61% |
6.88% |
Class J
Return Before Taxes |
15.06% |
12.20% |
8.79% |
Class R-1
Return Before Taxes |
15.32% |
11.49% |
8.15% |
Class R-3
Return Before Taxes |
15.64% |
11.83% |
8.48% |
Class R-4
Return Before Taxes |
15.87% |
12.04% |
8.68% |
Class R-5
Return Before Taxes |
16.01% |
12.18% |
8.81% |
Class R-6
Return Before Taxes |
16.33% |
12.47% |
8.91% |
S&P
1500 TR (reflects no deduction for
fees, expenses, or taxes) |
25.47% |
15.39% |
11.76% |
S&P
MidCap 400 Index (reflects no deduction for
fees, expenses, or taxes) |
15.84% |
12.08% |
8.76% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the S&P 1500 TR in order to meet
the revised definition of “broad-based securities market index.”
The S&P MidCap 400 Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
•Tyler
O’Donnell (since 2023), Portfolio Manager
•Aaron
J. Siebel (since 2018), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, R-5, and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchases. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
MIDCAP VALUE
FUND I
Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts if you and your family invest, or
agree to invest in the future, at least $50,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is available from
your financial intermediary and in “Choosing a Share Class and The Costs of
Investing” beginning on page 426 of the Fund’s Prospectus, Appendix B to the
Prospectus titled “Intermediary-Specific Sales Charge Waivers and Reductions,”
and “Multiple Class Structure” beginning on page 70 of the Fund’s Statement of
Additional Information.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
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A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.50% |
None |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
None |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
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A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Management
Fees |
0.64% |
0.64% |
0.64% |
0.64% |
0.64% |
0.64% |
0.64% |
0.64% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
N/A |
Other
Expenses |
0.25% |
0.15% |
0.11% |
0.53% |
0.32% |
0.28% |
0.26% |
0.00% |
Total
Annual Fund Operating Expenses |
1.14% |
0.94% |
0.75% |
1.52% |
1.21% |
1.02% |
0.90% |
0.64% |
Fee
Waiver and Expense Reimbursement (1)(2) |
(0.02)% |
(0.02)% |
(0.06)% |
(0.02)% |
(0.02)% |
(0.02)% |
(0.02)% |
(0.02)% |
Total
Annual Fund Operating Expenses after Fee Waiver and Expense
Reimbursement |
1.12% |
0.92% |
0.69% |
1.50% |
1.19% |
1.00% |
0.88% |
0.62% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to waive a portion of the Fund's management fees through the period ending
February 28, 2025. The fee waiver will reduce the Fund's management fees by
0.02% (expressed as a percent of average net assets on an annualized basis). It
is expected that the fee waiver will continue through the period disclosed;
however, Principal Funds, Inc. and PGI, the parties to the agreement may
mutually agree to terminate the fee waiver prior to the end of the
period.
(2) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund's expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.69% for Institutional Class shares. It is expected that the expense
limit will continue through the period ending February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limit prior to the end of
the period. Subject to applicable expense limits, the Fund may reimburse PGI for
expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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1
year |
3
years |
5
years |
10
years |
Class
A |
$658 |
$890 |
$1,141 |
$1,858 |
Class
J |
194 |
298 |
518 |
1,153 |
Institutional
Class |
70 |
234 |
411 |
925 |
Class
R-1 |
153 |
478 |
827 |
1,811 |
Class
R-3 |
121 |
382 |
663 |
1,464 |
Class
R-4 |
102 |
323 |
561 |
1,246 |
Class
R-5 |
90 |
285 |
497 |
1,106 |
Class
R-6 |
63 |
203 |
355 |
796
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With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
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1
year |
3
years |
5
years |
10
years |
Class
J |
$94 |
$298 |
$518 |
$1,153 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
49.9% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in equity securities of companies with
medium market capitalizations at the time of purchase. For this
Fund, companies with medium market capitalizations are those with market
capitalizations within the range of companies comprising the Russell
MidCap®
Value Index (as of January 31, 2024, this range was between approximately
$353.3 million and $76.6 billion). The Fund invests in value equity securities,
an investment strategy that emphasizes buying equity securities that appear to
be undervalued.
The
Fund is primarily actively managed by the sub-advisors. In addition, Principal
Global Investors, LLC may invest up to 30% of the Fund’s assets using an index
sampling strategy designed to match the performance of the Russell
MidCap®
Value Index.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Smaller
Companies Risk. Investments in smaller companies may involve greater risk and price
volatility than investments in larger, more mature companies. Smaller companies
may have limited product lines, markets, or financial resources; lack the
competitive strength of larger companies; have less experienced managers; or
depend on a few key employees. Their securities often are less widely held and
trade less frequently and in lesser quantities, and their market prices often
fluctuate more, than securities of larger companies.
•Value
Style Risk. Value investing entails the risk that
value stocks may continue to be undervalued by the market for extended periods,
including the entire period during which the stock is held by a fund, or the
events that would cause the stock price to increase may not occur as anticipated
or at all. Moreover, a stock that appears to be undervalued actually may be
appropriately priced at a low level and, therefore, would not be profitable for
the fund.
Real
Estate Securities Risk. Investing in real estate securities subjects the fund to the risks
associated with the real estate market (which are similar to the risks
associated with direct ownership in real estate), including declines in real
estate values, loss due to casualty or condemnation, property taxes, interest
rate changes, increased expenses, cash flow of underlying real estate assets,
regulatory changes (including zoning, land use, and rents), and environmental
problems, as well as to the risks related to the management skill and
creditworthiness of the issuer.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
For
periods prior to the inception date of Classes A and R-6 shares (April 2, 2019),
the performance shown in the table for these newer classes is that of the Fund’s
Institutional Class shares, adjusted to reflect the fees and expenses of the
newer class. These adjustments result in performance for such periods that is no
higher than the historical performance of the Institutional Class
shares.
Total Returns as of
December 31
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Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
20.14 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(29.46) |
% |
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Average
Annual Total Returns
For
the periods ended December 31, 2023 |
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1
Year |
5
Years |
10
Years |
Institutional Class Return Before
Taxes |
11.07% |
13.07% |
8.65% |
Institutional Class Return After Taxes
on Distributions |
9.88% |
11.39% |
6.54% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
7.39% |
10.17% |
6.30% |
Class A
Return Before Taxes |
4.51% |
11.33% |
7.66% |
Class J
Return Before Taxes |
9.89% |
12.85% |
8.37% |
Class R-1
Return Before Taxes |
10.18% |
12.19% |
7.77% |
Class R-3
Return Before Taxes |
10.53% |
12.55% |
8.10% |
Class R-4
Return Before Taxes |
10.74% |
12.76% |
8.31% |
Class R-5
Return Before Taxes |
10.88% |
12.89% |
8.44% |
Class R-6
Return Before Taxes |
11.19% |
13.19% |
8.71% |
Russell
3000 Index (reflects no deduction for
fees, expenses, or taxes) |
25.96% |
15.16% |
11.48% |
Russell
MidCap Value Index (reflects no deduction for
fees, expenses, or taxes) |
12.71% |
11.16% |
8.26% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Russell 3000 Index in order to meet
the revised definition of “broad-based securities market index.”
The Russell MidCap Value Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2009), Portfolio Manager
• Randy
L. Welch (since 2009), Portfolio Manager
Sub-Advisors
Los
Angeles Capital Management LLC
Victory
Capital Management Inc.
Purchase
and Sale of Fund Shares
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Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A
and J |
Initial
Investment |
$1,000(1) |
A
and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A
and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, R-5, and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchases. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
MONEY MARKET
FUND
Objective
The Fund seeks as high a level of current income as is considered
consistent with preservation of principal and maintenance of
liquidity.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You may pay other fees, such as brokerage commissions and other fees
to financial intermediaries, which are not reflected in the tables and examples
below.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
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A |
J |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
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A |
J |
Management
Fees |
0.40% |
0.40% |
Distribution
and/or Service (12b-1) Fees |
0.00% |
0.15% |
Other
Expenses |
0.09% |
0.05% |
Acquired
Fund Fees and Expenses |
0.01% |
0.01% |
Total
Annual Fund Operating Expenses |
0.50% |
0.61% |
Fee
Waiver and Expense Reimbursement
(1)(2) |
0.00% |
(0.15)% |
Total
Annual Fund Operating Expenses after Fee Waiver and Expense
Reimbursement |
0.50% |
0.46% |
(1) Principal
Funds Distributor, Inc. (the "Distributor") has contractually agreed to limit
the Distribution Fees attributable to Class J. The waiver will reduce the Fund's
Distribution Fees by 0.15%. It is expected that the fee waiver will continue
through the period ending February 28, 2025; however, Principal Funds, Inc. and
the Distributor, the parties to the agreement, may mutually agree to terminate
the fee waiver prior to the end of the period.
(2) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.50% for Class A shares. It is expected that the expense limit will
continue through the period ending February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limit prior to the end of
the period. Subject to applicable expense limits, the Fund may reimburse PGI for
expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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1
year |
3
years |
5
years |
10
years |
Class
A |
$151 |
$160 |
$280 |
$628 |
Class
J |
147 |
180 |
325 |
748
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With respect to Classes A and
J shares, you would pay the following expenses if you did not redeem your
shares:
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1
year |
3
years |
5
years |
10
years |
Class
A |
$51 |
$160 |
$280 |
$628 |
Class
J |
47 |
180 |
325 |
748
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Principal Investment
Strategies
The
Fund seeks to maintain a stable net asset value of $1.00 per share by investing
its assets in a portfolio of high quality, short-term money market instruments
such as those issued by banks, corporations (U.S. and non-U.S.), municipalities,
and the U.S. government. Such instruments include certificates of deposit,
banker’s acceptances, commercial paper, treasury bills, bonds, repurchase
agreements, and shares of other money market funds. The Fund maintains a
dollar-weighted average portfolio maturity of 60 days or less. As with all
mutual funds, the value of the Fund’s assets may rise or
fall.
Principal
Risks
You could
lose money by investing in the Fund. Although the Fund seeks to
preserve the value of your investment at $1.00 per share, it cannot guarantee it
will do so. The Fund may impose a fee upon sale of your shares. An investment
in the Fund is not a bank account and is not insured or guaranteed by the
Federal Deposit Insurance Corporation or any other government
agency. The Fund’s sponsor is not required to reimburse the Fund
for losses, and you should not expect that the sponsor will provide financial
support to the Fund at any time, including during periods of market stress. The
principal risks of investing in the Fund are listed below in alphabetical order
and not in order of significance.
Commercial
Paper Risk. The value of the Fund’s investment in commercial paper, which is
generally unsecured, is susceptible to changes in interest rates and the
issuer’s financial condition or credit quality. Commercial paper is usually
repaid at maturity by the issuer from the proceeds of the issuance of new
commercial paper. As a result, investments in commercial paper are subject to
the risk that the issuer cannot issue enough new commercial paper to satisfy its
outstanding obligations. In addition, under certain circumstances commercial
paper may become illiquid or may suffer from reduced
liquidity.
Fixed-Income
Securities Risk. Fixed-income securities are subject to interest rate, credit
quality, and liquidity risks. The market value of fixed-income securities
generally declines when interest rates rise, and increased interest rates may
adversely affect the liquidity of certain fixed-income securities. Moreover, an
issuer of fixed-income securities could default on its payment obligations due
to increased interest rates or for other reasons.
Foreign
Securities Risk. The risks of foreign securities include loss of value as a result
of: political or economic instability; nationalization, expropriation, or
confiscatory taxation; settlement delays; and limited government regulation
(including less stringent reporting, accounting, and disclosure standards than
are required of U.S. companies).
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Repurchase
Agreement Risk. If the other party to a repurchase agreement defaults on its
obligation under the agreement, the Fund may suffer delays and incur costs or
lose money in exercising its rights under the agreement. If the seller fails to
repurchase the security and the market value of the security declines, the Fund
may lose money.
U.S.
Government Securities Risk. Yields available from U.S. government securities are generally lower
than yields from many other fixed-income securities. The value of U.S.
government securities may be adversely impacted by changes in interest rates,
changes in the credit rating of the U.S. government, or a default by the U.S.
government.
U.S.
Government-Sponsored Securities Risk. Securities issued by U.S. government-sponsored enterprises such as
the Federal Home Loan Mortgage Corporation, the Federal National Mortgage
Association, and the Federal Home Loan Banks are not issued or guaranteed by the
U.S. government.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect
sales charges on Class A shares; if they did, results would be
lower. The table shows for the last one, five, and ten calendar
year periods (or, if shorter, the life of the Fund), how the Fund’s average
annual total returns compare with those of one or more broad measures of market
performance.
Total Returns as of
December 31
`
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Highest
return for a quarter during the period of the bar chart
above: |
Q4
2023 |
1.28 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q2
2022 |
0.00 |
% |
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Average
Annual Total Returns
For
the periods ended December 31, 2023 |
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1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
4.79% |
1.64% |
1.04% |
Class J
Return Before Taxes |
3.84% |
1.63% |
1.02% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.81% |
Bloomberg
U.S. Treasury Bellwethers 3 Month Index (reflects no deduction for
fees, expenses, or taxes) |
5.15% |
1.92% |
1.28% |
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Bloomberg U.S. Aggregate Bond Index
in order to meet the revised definition of “broad-based securities market
index.” The Bloomberg U.S. Treasury
Bellwethers 3 Month Index is included as an additional index for the Fund as it
shows how the Fund’s performance compares with the returns of an index of funds
with similar investment
objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• Allison
Hitchings (since 2023), Portfolio Manager
• Tracy
Reeg (since 2004), Portfolio Manager
Purchase
and Sale of Fund Shares
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| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A
and J |
Initial
Investment |
$1,000(1) |
A
and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A
and J |
Subsequent
Investments |
$100(1)(2) |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
The
Money Market Fund is operated as a retail money market fund, and as such, has
adopted policies and procedures reasonably designed to limit all beneficial
owners to natural persons. See Purchase of Fund Shares for additional
information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
OVERSEAS
FUND
Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment): None
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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|
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|
|
|
| |
|
Share
Class |
|
Inst. |
R-3 |
R-4 |
Management
Fees (1) |
0.87% |
0.87% |
0.87% |
Distribution
and/or Service (12b-1) Fees |
N/A |
0.25% |
0.10% |
Other
Expenses (2) |
0.08% |
0.38% |
0.34% |
Total
Annual Fund Operating Expenses |
0.95% |
1.50% |
1.31% |
Fee
Waiver (3) |
(0.02)% |
(0.02)% |
(0.02)% |
Total
Annual Fund Operating Expenses after Fee Waiver |
0.93% |
1.48% |
1.29% |
(1) Fees
have been restated to reflect current
fees.
(2) Includes
0.03% of expenses associated with the reclaim of foreign taxes paid.
(3) Principal
Global Investors, LLC ("PGI") has contractually agreed to waive a portion of the
Fund's management fees through the period ending February 28,
2025. The fee waiver will reduce the Fund's management fees by
0.02% (expressed as a percent of average net assets on an annualized basis). It
is expected that the fee waiver will continue through the period disclosed;
however, Principal Funds, Inc. and PGI, the parties to the agreement may
mutually agree to terminate the fee waiver prior to the end of the
period.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Institutional
Class |
$95 |
$301 |
$524 |
$1,165 |
Class
R-3 |
151 |
472 |
817 |
1,789 |
Class
R-4 |
131 |
413 |
716 |
1,577 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
59.3% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in equity securities that are tied
economically to countries outside the U.S. at the time of purchase. The Fund
considers a security to be tied economically to countries outside the U.S. (a
“foreign security”) if one or more of the following criteria is present: (i) the
issuer or guarantor of the security has its principal place of business or
principal office outside the U.S.; (ii) the principal trading market for the
security is a trading market outside the U.S.; (iii) the issuer or guarantor of
the security derives a majority of its revenue from outside the U.S.; or (iv)
the currency of settlement of the security is the currency of a country outside
of the U.S.
The
Fund invests in emerging market securities. The Fund invests in value equity
securities, an investment strategy that emphasizes buying equity securities that
appear to be undervalued. The Fund invests in equity securities of small,
medium, and large market capitalization companies.
The
Fund is primarily actively managed by the sub-advisors. In addition, Principal
Global Investors, LLC may invest up to 30% of the Fund’s assets using an index
sampling strategy designed to match the performance of the MSCI EAFE Value
Index.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Emerging
Markets Risk. Investments in emerging markets may have more risk than those in
developed markets because the emerging markets are less developed and more
illiquid. Emerging markets can also be subject to increased social, economic,
regulatory, and political uncertainties and can be extremely volatile. The U.S.
Securities and Exchange Commission, the U.S. Department of Justice, and other
U.S. authorities may be limited in their ability to pursue bad actors in
emerging markets, including with respect to fraud.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Foreign
Currency Risk. Risks of investing in securities denominated in, or that trade in,
foreign (non-U.S.) currencies include changes in foreign exchange rates and
foreign exchange restrictions.
Foreign
Securities Risk. The risks of foreign securities include loss of value as a result
of: political or economic instability; nationalization, expropriation, or
confiscatory taxation; settlement delays; and limited government regulation
(including less stringent reporting, accounting, and disclosure standards than
are required of U.S. companies). The Schedule of Investments included in the
Fund’s annual and semi-annual reports identify the countries in which the Fund
had invested, as of the date of the reports; to the extent a Fund has
significant investments in issuers or securities tied to a certain country or
region, it will be particularly susceptible to economic, political, regulatory
or other events or conditions affecting such country or
region.
Passive
Strategy Risk. A portion of the Fund seeks to match the performance of a specified
index. However, the correlation between the performance of this portion of the
Fund and index performance may be affected by many factors, such as Fund
expenses, the timing of cash flows into and out of the Fund, changes in
securities markets, and changes in the composition of the
index.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q4
2020 |
23.03 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(31.40) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Institutional Class Return Before
Taxes |
22.61% |
10.27% |
4.41% |
Institutional Class Return After Taxes
on Distributions |
20.52% |
8.77% |
3.14% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
14.31% |
7.86% |
3.25% |
Class R-3
Return Before Taxes |
21.95% |
9.67% |
3.83% |
Class R-4
Return Before Taxes |
22.14% |
9.88% |
4.03% |
MSCI EAFE
Index NTR (reflects withholding taxes
on foreign dividends, but no deduction for fees, expenses, or other
taxes) |
18.24% |
8.16% |
4.28% |
MSCI EAFE
Value Index NTR (reflects withholding taxes
on foreign dividends, but no deduction for fees, expenses, or other
taxes) |
18.95% |
7.08% |
3.16% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the MSCI EAFE Index in order to meet
the revised definition of “broad-based securities market index.”
The MSCI EAFE Value Index is included
as an additional index for the Fund as it shows how the Fund’s performance
compares with the returns of an index of funds with similar investment
objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2009), Portfolio Manager
• Randy
L. Welch (since 2009), Portfolio Manager
Sub-Advisors
Barrow,
Hanley, Mewhinney & Strauss, LLC (doing business as Barrow Hanley Global
Investors)
Causeway Capital Management LLC
Purchase
and Sale of Fund Shares
For
Classes R-3, R-4, and Institutional Class shares, there are no minimum initial
or subsequent investment requirements for eligible purchasers.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
See
Purchase of Fund Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL CAPITAL
APPRECIATION FUND
Objective
The Fund seeks to provide long-term growth of
capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$50,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
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| |
|
Share
Class |
|
A |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.50% |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
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| |
|
Share
Class |
|
A |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.43% |
0.43% |
0.43% |
0.43% |
0.43% |
0.43% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.10% |
0.03% |
0.54% |
0.33% |
0.29% |
0.27% |
Total
Annual Fund Operating Expenses |
0.78% |
0.46% |
1.32% |
1.01% |
0.82% |
0.70% |
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
A |
$625 |
$785 |
$959 |
$1,463 |
Institutional
Class |
47 |
148 |
258 |
579 |
Class
R-1 |
134 |
418 |
723 |
1,590 |
Class
R-3 |
103 |
322 |
558 |
1,236 |
Class
R-4 |
84 |
262 |
455 |
1,014 |
Class
R-5 |
72 |
224 |
390 |
871
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
48.2% of the average
value of its portfolio.
Principal Investment
Strategies
The
Fund invests primarily in equity securities of companies with any market
capitalization, but it has a greater exposure to large market capitalization
companies than small or medium market capitalization companies. Those managing
the Fund’s investments seek to invest in securities of businesses that they
believe are trading at a discount to their private market value (i.e., the value
of the business if it was sold), have a competitive advantage, and/or that have
barriers to entry in their respective industries.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Smaller
Companies Risk. Investments in smaller companies may
involve greater risk and price volatility than investments in larger, more
mature companies. Smaller companies may have limited product lines, markets, or
financial resources; lack the competitive strength of larger companies; have
less experienced managers; or depend on a few key employees. Their securities
often are less widely held and trade less frequently and in lesser quantities,
and their market prices often fluctuate more, than securities of larger
companies.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect
sales charges on Class A shares; if they did, results would be
lower. The table shows for the last one, five, and ten calendar
year periods (or, if shorter, the life of the Fund), how the Fund’s average
annual total returns compare with those of one or more broad measures of market
performance.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
19.69 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(19.46) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
18.13% |
14.55% |
11.09% |
Class A
Return After Taxes on Distributions |
17.93% |
13.22% |
8.86% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
10.87% |
11.44% |
8.35% |
Institutional Class Return Before
Taxes |
25.42% |
16.24% |
12.11% |
Class R-1
Return Before Taxes |
24.34% |
15.23% |
11.14% |
Class R-3
Return Before Taxes |
24.73% |
15.59% |
11.49% |
Class R-4
Return Before Taxes |
24.96% |
15.80% |
11.70% |
Class R-5
Return Before Taxes |
25.12% |
15.95% |
11.83% |
Russell
3000 Index (reflects no deduction for
fees, expenses, or taxes) |
25.96% |
15.16% |
11.48% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• Daniel
R. Coleman (since 2010), Portfolio Manager
• Theodore
Jayne (since 2015), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A |
Initial
Investment |
$1,000(1) |
A |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, and R-5 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances.
Effective
as of the close of the New York Stock Exchange on March 24, 2023, Class C shares
will no longer be available for purchase except in limited circumstances.
See
Purchase of Fund Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME
STRATEGIC INCOME FUND
Objective
The
Fund seeks current income, and as a secondary objective,
capital appreciation.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
You may
qualify for sales charge discounts if you and your family invest, or agree to
invest in the future, at least $100,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
|
A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
3.75% |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
|
A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.19% |
0.06% |
0.02% |
0.54% |
0.33% |
0.29% |
0.27% |
Acquired
Fund Fees and Expenses |
0.50% |
0.50% |
0.50% |
0.50% |
0.50% |
0.50% |
0.50% |
Total
Annual Fund Operating Expenses |
0.94% |
0.71% |
0.52% |
1.39% |
1.08% |
0.89% |
0.77% |
Expense
Reimbursement (1) |
(0.06)% |
N/A |
(0.02)% |
N/A |
N/A |
N/A |
N/A |
Total
Annual Fund Operating Expenses after Expense Reimbursement |
0.88% |
0.71% |
0.50% |
1.39% |
1.08% |
0.89% |
0.77% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.38% for Class A and 0.00% for Institutional Class shares. It is
expected that the expense limits will continue through the period ending
February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limits prior to the end
of the period. Subject to applicable expense limits, the Fund may reimburse PGI
for expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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1
year |
3
years |
5
years |
10
years |
Class
A |
$461 |
$658 |
$870 |
$1,481 |
Class
J |
173 |
227 |
395 |
883 |
Institutional
Class |
51 |
165 |
289 |
651 |
Class
R-1 |
142 |
440 |
761 |
1,669 |
Class
R-3 |
110 |
343 |
595 |
1,317 |
Class
R-4 |
91 |
284 |
493 |
1,096 |
Class
R-5 |
79 |
246 |
428 |
954
|
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
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1
year |
3
years |
5
years |
10
years |
Class
J |
$73 |
$227 |
$395 |
$883
|
Portfolio
Turnover
The Fund and each underlying fund pays transaction costs, such as
commissions, when it buys and sells securities (or “turns over” its portfolio).
A higher portfolio turnover rate may indicate higher transaction costs. These
costs, which are not reflected in Annual Fund Operating Expenses or in the
Example, affect the Fund’s and the underlying funds' performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 11.8% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund invests according to an asset allocation strategy designed for investors
primarily seeking current income and secondarily capital appreciation. The
Fund’s asset allocation is designed for investors who are approximately 10 years
beyond the normal retirement age of 65. The Fund is a fund of funds and invests
in underlying funds of Principal Funds, Inc. (“PFI”). Its underlying funds
consist of domestic and foreign equity funds, fixed-income funds, real asset
funds, and other funds that aim to offer diversification beyond traditional
equity and fixed-income securities. The diversification of the Fund is designed
to moderate overall price volatility. The Fund may add, remove, or substitute
underlying funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of large market
capitalization companies, fixed-income securities, domestic and foreign
securities, securities denominated in foreign currencies, investment companies,
securitized products, U.S. government and U.S. government-sponsored securities,
and derivatives. A derivative is a financial arrangement, the value of which is
derived from, or based on, a traditional security, asset, or market index. The
underlying funds principally use futures, options, swaps (including, for
example, credit default, interest rate, and currency swaps), and forwards in
order to gain exposure to a variety of securities or asset classes or attempt to
reduce risk.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund's Investments in Underlying Funds
Counterparty
Risk. Counterparty risk is the risk that the counterparty to a contract or
other obligation will be unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Credit
Default Swaps. Credit default swaps involve special risks in addition to those
associated with swaps generally because they are difficult to value, are highly
susceptible to liquidity and credit risk, and generally pay a return to the
party that has paid the premium only in the event of an actual default by the
issuer of the underlying obligation (as opposed to a credit downgrade or other
indication of financial difficulty). The protection “buyer” in a credit default
contract may be obligated to pay the protection “seller” an up-front payment or
a periodic stream of payments over the term of the contract, provided,
generally, that no credit event on a reference obligation has occurred. If a
credit event occurs, the seller generally must pay the buyer the “par value”
(i.e., full notional value) of the swap in exchange for an equal face amount of
deliverable obligations of the reference entity described in the swap, or the
seller may be required to deliver the related net cash amount, if the swap is
cash settled. The Fund may be either the buyer or seller in the
transaction.
•Forward
Contracts, Futures, and Swaps. Forward contracts, futures, and swaps involve specific risks,
including: the imperfect correlation between the change in market value of the
instruments held by the fund and the price of the forward contract, future, or
swap; possible lack of a liquid secondary market for a forward contract, future,
or swap and the resulting inability to close a forward contract, future, or swap
when desired; counterparty risk; and if the fund has insufficient cash, it may
have to sell securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options involve specific risks,
including: the imperfect correlation between the change in market value of the
instruments held by the Fund and the price of the options; counterparty risk;
difference in trading hours for the options markets and the markets for the
underlying securities (rate movements can take place in the underlying markets
that cannot be reflected in the options markets); and an insufficient liquid
secondary market for particular options.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk. Growth investing entails the risk that if growth companies do not
increase their earnings at a rate expected by investors, the market price of
their stock may decline significantly, even if earnings show an absolute
increase. Growth company stocks also typically lack the dividend yield that can
lessen price declines in market downturns.
•Value
Style Risk. Value investing entails the risk that
value stocks may continue to be undervalued by the market for extended periods,
including the entire period during which the stock is held by a fund, or the
events that would cause the stock price to increase may not occur as anticipated
or at all. Moreover, a stock that appears to be undervalued actually may be
appropriately priced at a low level and, therefore, would not be profitable for
the fund.
Fixed-Income
Securities Risk. Fixed-income securities are subject to interest rate, credit
quality, and liquidity risks. The market value of fixed-income securities
generally declines when interest rates rise, and increased interest rates may
adversely affect the liquidity of certain fixed-income securities. Moreover, an
issuer of fixed-income securities could default on its payment obligations due
to increased interest rates or for other reasons.
Foreign
Currency Risk. Risks of investing in securities denominated in, or that trade in,
foreign (non-U.S.) currencies include changes in foreign exchange rates and
foreign exchange restrictions.
Foreign
Securities Risk. The risks of foreign securities include loss of value as a result
of: political or economic instability; nationalization, expropriation, or
confiscatory taxation; settlement delays; and limited government regulation
(including less stringent reporting, accounting, and disclosure standards than
are required of U.S. companies).
Portfolio
Duration Risk. Portfolio duration is a measure of the expected life of a
fixed-income security and its sensitivity to changes in interest rates. The
longer a fund’s average portfolio duration, the more sensitive the fund will be
to changes in interest rates, which means funds with longer average portfolio
durations may be more volatile than those with shorter
durations.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Securitized
Products Risk. Investments in securitized products are subject to risks similar to
traditional fixed-income securities, such as credit, interest rate, liquidity,
prepayment, extension, and default risk, as well as additional risks associated
with the nature of the assets and the servicing of those assets. Unscheduled
prepayments on securitized products may have to be reinvested at lower rates. A
reduction in prepayments may increase the effective maturities of these
securities, exposing them to the risk of decline in market value over time
(extension risk).
U.S.
Government Securities Risk. Yields available from U.S. government securities are generally lower
than yields from many other fixed-income securities. The value of U.S.
government securities may be adversely impacted by changes in interest rates,
changes in the credit rating of the U.S. government, or a default by the U.S.
government.
U.S.
Government-Sponsored Securities Risk. Securities issued by U.S. government-sponsored enterprises such as
the Federal Home Loan Mortgage Corporation, the Federal National Mortgage
Association, and the Federal Home Loan Banks are not issued or guaranteed by the
U.S. government.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect
sales charges on Class A shares; if they did, results would be
lower. The table shows for the last one, five, and ten calendar
year periods (or, if shorter, the life of the Fund), how the Fund’s average
annual total returns compare with those of one or more broad measures of market
performance.
Total Returns as of
December 31
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Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
8.31 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q2
2022 |
(8.45) |
% |
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Average
Annual Total Returns
For
the periods ended December 31, 2023 |
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1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
6.32% |
3.40% |
2.88% |
Class A
Return After Taxes on Distributions |
5.44% |
1.97% |
1.61% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
3.82% |
2.26% |
1.86% |
Class J
Return Before Taxes |
9.67% |
4.36% |
3.41% |
Institutional Class Return Before
Taxes |
10.93% |
4.58% |
3.65% |
Class R-1
Return Before Taxes |
9.94% |
3.66% |
2.74% |
Class R-3
Return Before Taxes |
10.22% |
3.98% |
3.06% |
Class R-4
Return Before Taxes |
10.47% |
4.20% |
3.26% |
Class R-5
Return Before Taxes |
10.70% |
4.32% |
3.39% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.81% |
S&P
Target Date Retirement Income Index (reflects no deduction for
fees, expenses, or taxes) |
10.35% |
4.90% |
3.98% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Bloomberg U.S. Aggregate Bond Index
in order to meet the revised definition of “broad-based securities market
index.” The S&P Target Date Retirement
Income Index is included as an additional index for the Fund as it shows how the
Fund’s performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2007), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2007), Portfolio Manager
Purchase
and Sale of Fund Shares
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Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A
and J |
Initial
Investment |
$1,000(1) |
A
and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A
and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, and R-5 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME 2015
FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your
investment): None
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
|
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.02% |
0.54% |
0.33% |
0.29% |
0.27% |
Acquired
Fund Fees and Expenses |
0.51% |
0.51% |
0.51% |
0.51% |
0.51% |
Total
Annual Fund Operating Expenses |
0.53% |
1.40% |
1.09% |
0.90% |
0.78% |
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
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|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Institutional
Class |
$54 |
$170 |
$296 |
$665 |
Class
R-1 |
143 |
443 |
766 |
1,680 |
Class
R-3 |
111 |
347 |
601 |
1,329 |
Class
R-4 |
92 |
287 |
498 |
1,108 |
Class
R-5 |
80 |
249 |
433 |
966
|
Portfolio
Turnover
The
Fund and each underlying fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s
and the underlying fund's performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 14.5% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds and invests in
underlying funds of Principal Funds, Inc. (“PFI”). Its underlying funds consist
of domestic and foreign equity funds, fixed-income funds, real asset funds, and
other funds that aim to offer diversification beyond traditional equity and
fixed-income securities. The asset class diversification of the Fund is designed
to moderate overall price volatility. The Fund may add, remove, or substitute
underlying funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
securities, securities denominated in foreign currencies, investment companies,
securitized products, U.S. government and U.S. government-sponsored securities,
and derivatives. A derivative is a financial arrangement, the value of which is
derived from, or based on, a traditional security, asset, or market index. The
underlying funds principally use futures, options, swaps (including, for
example, credit default, interest rate, and currency swaps), and forwards in
order to gain exposure to a variety of securities or asset classes or attempt to
reduce risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Strategic Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Strategic Income Fund if the Board of Directors determines
that the combination is in the best interests of Fund shareholders. It is
expected that at the target date in the Fund’s name, the shareholder will begin
gradually withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying Funds
Counterparty
Risk. Counterparty risk is the risk that the counterparty to a contract or
other obligation will be unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Credit
Default Swaps. Credit default swaps involve special risks in addition to those
associated with swaps generally because they are difficult to value, are highly
susceptible to liquidity and credit risk, and generally pay a return to the
party that has paid the premium only in the event of an actual default by the
issuer of the underlying obligation (as opposed to a credit downgrade or other
indication of financial difficulty). The protection “buyer” in a credit default
contract may be obligated to pay the protection “seller” an up-front payment or
a periodic stream of payments over the term of the contract, provided,
generally, that no credit event on a reference obligation has occurred. If a
credit event occurs, the seller generally must pay the buyer the “par value”
(i.e., full notional value) of the swap in exchange for an equal face amount of
deliverable obligations of the reference entity described in the swap, or the
seller may be required to deliver the related net cash amount, if the swap is
cash settled. The Fund may be either the buyer or seller in the
transaction.
•Forward
Contracts, Futures, and Swaps. Forward contracts, futures, and swaps involve specific risks,
including: the imperfect correlation between the change in market value of the
instruments held by the fund and the price of the forward contract, future, or
swap; possible lack of a liquid secondary market for a forward contract, future,
or swap and the resulting inability to close a forward contract, future, or swap
when desired; counterparty risk; and if the fund has insufficient cash, it may
have to sell securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options involve specific risks,
including: the imperfect correlation between the change in market value of the
instruments held by the Fund and the price of the options; counterparty risk;
difference in trading hours for the options markets and the markets for the
underlying securities (rate movements can take place in the underlying markets
that cannot be reflected in the options markets); and an insufficient liquid
secondary market for particular options.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk. Growth investing entails the risk that if growth companies do not
increase their earnings at a rate expected by investors, the market price of
their stock may decline significantly, even if earnings show an absolute
increase. Growth company stocks also typically lack the dividend yield that can
lessen price declines in market downturns.
•Smaller
Companies Risk. Investments in smaller companies may involve greater risk and price
volatility than investments in larger, more mature companies. Smaller companies
may have limited product lines, markets, or financial resources; lack the
competitive strength of larger companies; have less experienced managers; or
depend on a few key employees. Their securities often are less widely held and
trade less frequently and in lesser quantities, and their market prices often
fluctuate more, than securities of larger companies.
•Value
Style Risk. Value investing entails the risk that
value stocks may continue to be undervalued by the market for extended periods,
including the entire period during which the stock is held by a fund, or the
events that would cause the stock price to increase may not occur as anticipated
or at all. Moreover, a stock that appears to be undervalued actually may be
appropriately priced at a low level and, therefore, would not be profitable for
the fund.
Fixed-Income
Securities Risk. Fixed-income securities are subject to interest rate, credit
quality, and liquidity risks. The market value of fixed-income securities
generally declines when interest rates rise, and increased interest rates may
adversely affect the liquidity of certain fixed-income securities. Moreover, an
issuer of fixed-income securities could default on its payment obligations due
to increased interest rates or for other reasons.
Foreign
Currency Risk. Risks of investing in securities denominated in, or that trade in,
foreign (non-U.S.) currencies include changes in foreign exchange rates and
foreign exchange restrictions.
Foreign
Securities Risk. The risks of foreign securities include loss of value as a result
of: political or economic instability; nationalization, expropriation, or
confiscatory taxation; settlement delays; and limited government regulation
(including less stringent reporting, accounting, and disclosure standards than
are required of U.S. companies).
Portfolio
Duration Risk. Portfolio duration is a measure of the expected life of a
fixed-income security and its sensitivity to changes in interest rates. The
longer a fund’s average portfolio duration, the more sensitive the fund will be
to changes in interest rates, which means funds with longer average portfolio
durations may be more volatile than those with shorter
durations.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Securitized
Products Risk. Investments in securitized products are subject to risks similar to
traditional fixed-income securities, such as credit, interest rate, liquidity,
prepayment, extension, and default risk, as well as additional risks associated
with the nature of the assets and the servicing of those assets. Unscheduled
prepayments on securitized products may have to be reinvested at lower rates. A
reduction in prepayments may increase the effective maturities of these
securities, exposing them to the risk of decline in market value over time
(extension risk).
U.S.
Government Securities Risk. Yields available from U.S. government securities are generally lower
than yields from many other fixed-income securities. The value of U.S.
government securities may be adversely impacted by changes in interest rates,
changes in the credit rating of the U.S. government, or a default by the U.S.
government.
U.S.
Government-Sponsored Securities Risk. Securities issued by U.S. government-sponsored enterprises such as
the Federal Home Loan Mortgage Corporation, the Federal National Mortgage
Association, and the Federal Home Loan Banks are not issued or guaranteed by the
U.S. government.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Total Returns as of
December 31
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Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
11.02 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(9.54) |
% |
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Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Institutional Class Return Before
Taxes |
11.17% |
6.07% |
4.73% |
Institutional Class Return After Taxes
on Distributions |
9.50% |
3.84% |
2.63% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
7.02% |
4.28% |
3.19% |
Class R-1
Return Before Taxes |
10.26% |
5.15% |
3.82% |
Class R-3
Return Before Taxes |
10.60% |
5.46% |
4.14% |
Class R-4
Return Before Taxes |
10.72% |
5.65% |
4.33% |
Class R-5
Return Before Taxes |
10.84% |
5.77% |
4.45% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.81% |
S&P
Target Date 2015 Index (reflects no deduction for
fees, expenses, or taxes) |
11.38% |
6.10% |
4.94% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns depend on an investor’s tax situation and may differ
from those shown. The after-tax returns shown
are not relevant to investors who hold their Fund shares through tax-deferred
arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Bloomberg U.S. Aggregate Bond Index
in order to meet the revised definition of “broad-based securities market
index.” The S&P Target Date 2015 Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2008), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2008), Portfolio Manager
Purchase
and Sale of Fund Shares
For
Classes R-1, R-3, R-4, R-5, and Institutional Class shares, there are no minimum
initial or subsequent investment requirements for eligible purchasers.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME 2020
FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
You may
qualify for sales charge discounts if you and your family invest, or agree to
invest in the future, at least $100,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
|
A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
3.75% |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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|
Share
Class |
|
A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.13% |
0.03% |
0.01% |
0.53% |
0.32% |
0.28% |
0.26% |
Acquired
Fund Fees and Expenses |
0.53% |
0.53% |
0.53% |
0.53% |
0.53% |
0.53% |
0.53% |
Total
Annual Fund Operating Expenses |
0.91% |
0.71% |
0.54% |
1.41% |
1.10% |
0.91% |
0.79% |
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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|
1
year |
3
years |
5
years |
10
years |
Class
A |
$464 |
$654 |
$860 |
$1,453 |
Class
J |
173 |
227 |
395 |
883 |
Institutional
Class |
55 |
173 |
302 |
677 |
Class
R-1 |
144 |
446 |
771 |
1,691 |
Class
R-3 |
112 |
350 |
606 |
1,340 |
Class
R-4 |
93 |
290 |
504 |
1,120 |
Class
R-5 |
81 |
252 |
439 |
978
|
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
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| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$73 |
$227 |
$395 |
$883
|
Portfolio
Turnover
The Fund and each underlying fund pays transaction costs, such as
commissions, when it buys and sells securities (or “turns over” its portfolio).
A higher portfolio turnover rate may indicate higher transaction costs. These
costs, which are not reflected in Annual Fund Operating Expenses or in the
Example, affect the Fund’s and the underlying fund's performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 9.8% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds and invests in
underlying funds of Principal Funds, Inc. (“PFI”). Its underlying funds consist
of domestic and foreign equity funds, fixed-income funds, real asset funds, and
other funds that aim to offer diversification beyond traditional equity and
fixed-income securities. The asset class diversification of the Fund is designed
to moderate overall price volatility. The Fund may add, remove, or substitute
underlying funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
securities, securities denominated in foreign currencies, investment companies,
U.S. government and U.S. government-sponsored securities, and derivatives. A
derivative is a financial arrangement, the value of which is derived from, or
based on, a traditional security, asset, or market index. The underlying funds
principally use futures, options, swaps (including, for example, credit default,
interest rate, and currency swaps), and forwards in order to gain exposure to a
variety of securities or asset classes or attempt to reduce risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Strategic Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Strategic Income Fund if the Board of Directors determines
that the combination is in the best interests of Fund shareholders. It is
expected that at the target date in the Fund’s name, the shareholder will begin
gradually withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Credit
Default Swaps.
Credit default swaps involve special risks in addition to those associated with
swaps generally because they are difficult to value, are highly susceptible to
liquidity and credit risk, and generally pay a return to the party that has paid
the premium only in the event of an actual default by the issuer of the
underlying obligation (as opposed to a credit downgrade or other indication of
financial difficulty). The protection “buyer” in a credit default contract may
be obligated to pay the protection “seller” an up-front payment or a periodic
stream of payments over the term of the contract, provided, generally, that no
credit event on a reference obligation has occurred. If a credit event occurs,
the seller generally must pay the buyer the “par value” (i.e., full notional
value) of the swap in exchange for an equal face amount of deliverable
obligations of the reference entity described in the swap, or the seller may be
required to deliver the related net cash amount, if the swap is cash settled.
The Fund may be either the buyer or seller in the
transaction.
•Forward
Contracts, Futures, and Swaps. Forward
contracts, futures, and swaps involve specific risks, including: the imperfect
correlation between the change in market value of the instruments held by the
fund and the price of the forward contract, future, or swap; possible lack of a
liquid secondary market for a forward contract, future, or swap and the
resulting inability to close a forward contract, future, or swap when desired;
counterparty risk; and if the fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Securitized
Products Risk. Investments
in securitized products are subject to risks similar to traditional fixed-income
securities, such as credit, interest rate, liquidity, prepayment, extension, and
default risk, as well as additional risks associated with the nature of the
assets and the servicing of those assets. Unscheduled prepayments on securitized
products may have to be reinvested at lower rates. A reduction in prepayments
may increase the effective maturities of these securities, exposing them to the
risk of decline in market value over time (extension
risk).
U.S.
Government Securities Risk. Yields
available from U.S. government securities are generally lower than yields from
many other fixed-income securities. The value of U.S. government securities may
be adversely impacted by changes in interest rates, changes in the credit rating
of the U.S. government, or a default by the U.S.
government.
U.S.
Government-Sponsored Securities Risk. Securities
issued by U.S. government-sponsored enterprises such as the Federal Home Loan
Mortgage Corporation, the Federal National Mortgage Association, and the Federal
Home Loan Banks are not issued or guaranteed by the U.S.
government.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect sales charges on Class A shares; if
they did, results would be lower. The table shows for the last one, five, and
ten calendar year periods (or, if shorter, the life of the Fund), how the Fund’s
average annual total returns compare with those of one or more broad measures of
market performance.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
12.29 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(11.66) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
7.63% |
5.76% |
4.51% |
Class A
Return After Taxes on Distributions |
6.13% |
3.73% |
2.70% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
5.00% |
4.14% |
3.12% |
Class J
Return Before Taxes |
10.99% |
6.78% |
5.09% |
Institutional Class Return Before
Taxes |
12.25% |
6.95% |
5.30% |
Class R-1
Return Before Taxes |
11.26% |
6.02% |
4.37% |
Class R-3
Return Before Taxes |
11.64% |
6.35% |
4.70% |
Class R-4
Return Before Taxes |
11.82% |
6.55% |
4.90% |
Class R-5
Return Before Taxes |
11.93% |
6.67% |
5.02% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.81% |
S&P
Target Date 2020 Index (reflects no deduction for
fees, expenses, or taxes) |
12.32% |
6.47% |
5.28% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Bloomberg U.S. Aggregate Bond Index
in order to meet the revised definition of “broad-based securities market
index.” The S&P Target Date 2020 Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2007), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2007), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A
and J |
Initial
Investment |
$1,000(1) |
A
and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A
and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, and R-5 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME 2025
FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your
investment): None
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
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|
|
|
|
| |
|
Share
Class |
|
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.01% |
0.54% |
0.33% |
0.29% |
0.27% |
Acquired
Fund Fees and Expenses |
0.55% |
0.55% |
0.55% |
0.55% |
0.55% |
Total
Annual Fund Operating Expenses |
0.56% |
1.44% |
1.13% |
0.94% |
0.82% |
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Institutional
Class |
$57 |
$179 |
$313 |
$701 |
Class
R-1 |
147 |
456 |
787 |
1,724 |
Class
R-3 |
115 |
359 |
622 |
1,375 |
Class
R-4 |
96 |
300 |
520 |
1,155 |
Class
R-5 |
84 |
262 |
455 |
1,014 |
Portfolio
Turnover
The Fund and each underlying fund pays transaction costs, such as
commissions, when it buys and sells securities (or “turns over” its portfolio).
A higher portfolio turnover rate may indicate higher transaction costs. These
costs, which are not reflected in Annual Fund Operating Expenses or in the
Example, affect the Fund’s and the underlying fund's performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 14.4% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds and invests in
underlying funds of Principal Funds, Inc. (“PFI”). Its underlying funds consist
of domestic and foreign equity funds, fixed-income funds, real asset funds, and
other funds that aim to offer diversification beyond traditional equity and
fixed-income securities. The asset class diversification of the Fund is designed
to moderate overall price volatility. The Fund may add, remove, or substitute
underlying funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
securities, securities denominated in foreign currencies, investment companies,
U.S. government and U.S. government-sponsored securities, and derivatives. A
derivative is a financial arrangement, the value of which is derived from, or
based on, a traditional security, asset, or market index. The underlying funds
principally use futures, options, swaps (including, for example, credit default,
interest rate, and currency swaps), and forwards in order to gain exposure to a
variety of securities or asset classes or attempt to reduce risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Strategic Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Strategic Income Fund if the Board of Directors determines
that the combination is in the best interests of Fund shareholders. It is
expected that at the target date in the Fund’s name, the shareholder will begin
gradually withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Credit
Default Swaps.
Credit default swaps involve special risks in addition to those associated with
swaps generally because they are difficult to value, are highly susceptible to
liquidity and credit risk, and generally pay a return to the party that has paid
the premium only in the event of an actual default by the issuer of the
underlying obligation (as opposed to a credit downgrade or other indication of
financial difficulty). The protection “buyer” in a credit default contract may
be obligated to pay the protection “seller” an up-front payment or a periodic
stream of payments over the term of the contract, provided, generally, that no
credit event on a reference obligation has occurred. If a credit event occurs,
the seller generally must pay the buyer the “par value” (i.e., full notional
value) of the swap in exchange for an equal face amount of deliverable
obligations of the reference entity described in the swap, or the seller may be
required to deliver the related net cash amount, if the swap is cash settled.
The Fund may be either the buyer or seller in the
transaction.
•Forward
Contracts, Futures, and Swaps. Forward
contracts, futures, and swaps involve specific risks, including: the imperfect
correlation between the change in market value of the instruments held by the
fund and the price of the forward contract, future, or swap; possible lack of a
liquid secondary market for a forward contract, future, or swap and the
resulting inability to close a forward contract, future, or swap when desired;
counterparty risk; and if the fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Securitized
Products Risk. Investments
in securitized products are subject to risks similar to traditional fixed-income
securities, such as credit, interest rate, liquidity, prepayment, extension, and
default risk, as well as additional risks associated with the nature of the
assets and the servicing of those assets. Unscheduled prepayments on securitized
products may have to be reinvested at lower rates. A reduction in prepayments
may increase the effective maturities of these securities, exposing them to the
risk of decline in market value over time (extension
risk).
U.S.
Government Securities Risk. Yields
available from U.S. government securities are generally lower than yields from
many other fixed-income securities. The value of U.S. government securities may
be adversely impacted by changes in interest rates, changes in the credit rating
of the U.S. government, or a default by the U.S.
government.
U.S.
Government-Sponsored Securities Risk. Securities
issued by U.S. government-sponsored enterprises such as the Federal Home Loan
Mortgage Corporation, the Federal National Mortgage Association, and the Federal
Home Loan Banks are not issued or guaranteed by the U.S.
government.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
14.07 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(13.80) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Institutional Class Return Before
Taxes |
13.31% |
7.86% |
5.87% |
Institutional Class Return After Taxes
on Distributions |
11.84% |
5.98% |
4.11% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
8.31% |
5.78% |
4.19% |
Class R-1
Return Before Taxes |
12.48% |
6.92% |
4.95% |
Class R-3
Return Before Taxes |
12.73% |
7.24% |
5.27% |
Class R-4
Return Before Taxes |
13.03% |
7.47% |
5.48% |
Class R-5
Return Before Taxes |
13.15% |
7.59% |
5.60% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.81% |
S&P
Target Date 2025 Index (reflects no deduction for
fees, expenses, or taxes) |
12.99% |
7.42% |
5.85% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Bloomberg U.S. Aggregate Bond Index
in order to meet the revised definition of “broad-based securities market
index.” The S&P Target Date 2025 Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2008), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2008), Portfolio Manager
Purchase
and Sale of Fund Shares
For
Classes R-1, R-3, R-4, R-5, and Institutional Class shares, there are no minimum
initial or subsequent investment requirements for eligible purchasers.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME 2030
FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
You
may qualify for sales charge discounts if you and your family invest, or agree
to invest in the future, at least $100,000 in Class A Shares of Principal Funds,
Inc. More information about these and other discounts is available from your
financial intermediary and in “Choosing a Share Class and The Costs of
Investing” beginning on page 426 of the Fund’s Prospectus, Appendix B to the
Prospectus titled “Intermediary-Specific Sales Charge Waivers and Reductions,”
and “Multiple Class Structure” beginning on page 70 of the Fund’s Statement of
Additional Information.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
|
A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
3.75% |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.13% |
0.04% |
0.01% |
0.53% |
0.32% |
0.28% |
0.26% |
Acquired
Fund Fees and Expenses |
0.57% |
0.57% |
0.57% |
0.57% |
0.57% |
0.57% |
0.57% |
Total
Annual Fund Operating Expenses |
0.95% |
0.76% |
0.58% |
1.45% |
1.14% |
0.95% |
0.83% |
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
A |
$468 |
$666 |
$881 |
$1,498 |
Class
J |
178 |
243 |
422 |
942 |
Institutional
Class |
59 |
186 |
324 |
726 |
Class
R-1 |
148 |
459 |
792 |
1,735 |
Class
R-3 |
116 |
362 |
628 |
1,386 |
Class
R-4 |
97 |
303 |
525 |
1,166 |
Class
R-5 |
85 |
265 |
460 |
1,025 |
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$78 |
$243 |
$422 |
$942
|
Portfolio
Turnover
The
Fund and each underlying fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s
and the underlying fund's performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 11.2% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds and invests in
underlying funds of Principal Funds, Inc. (“PFI”). Its underlying funds consist
of domestic and foreign equity funds, fixed-income funds, real asset funds, and
other funds that aim to offer diversification beyond traditional equity and
fixed-income securities. The asset class diversification of the Fund is designed
to moderate overall price volatility. The Fund may add, remove, or substitute
underlying funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
securities, securities denominated in foreign currencies, investment companies
(including index funds), U.S. government and U.S. government-sponsored
securities, and derivatives. A derivative is a financial arrangement, the value
of which is derived from, or based on, a traditional security, asset, or market
index. The underlying funds principally use futures, options, swaps (including,
for example, credit default, interest rate, and currency swaps), and forwards in
order to gain exposure to a variety of securities or asset classes or attempt to
reduce risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Strategic Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Strategic Income Fund if the Board of Directors determines
that the combination is in the best interests of Fund shareholders. It is
expected that at the target date in the Fund’s name, the shareholder will begin
gradually withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Credit
Default Swaps.
Credit default swaps involve special risks in addition to those associated with
swaps generally because they are difficult to value, are highly susceptible to
liquidity and credit risk, and generally pay a return to the party that has paid
the premium only in the event of an actual default by the issuer of the
underlying obligation (as opposed to a credit downgrade or other indication of
financial difficulty). The protection “buyer” in a credit default contract may
be obligated to pay the protection “seller” an up-front payment or a periodic
stream of payments over the term of the contract, provided, generally, that no
credit event on a reference obligation has occurred. If a credit event occurs,
the seller generally must pay the buyer the “par value” (i.e., full notional
value) of the swap in exchange for an equal face amount of deliverable
obligations of the reference entity described in the swap, or the seller may be
required to deliver the related net cash amount, if the swap is cash settled.
The Fund may be either the buyer or seller in the
transaction.
•Forward
Contracts, Futures, and Swaps. Forward
contracts, futures, and swaps involve specific risks, including: the imperfect
correlation between the change in market value of the instruments held by the
fund and the price of the forward contract, future, or swap; possible lack of a
liquid secondary market for a forward contract, future, or swap and the
resulting inability to close a forward contract, future, or swap when desired;
counterparty risk; and if the fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Index
Fund Risk. Index
funds use a passive investment approach and generally do not attempt to manage
market volatility, use defensive strategies, or reduce the effect of any
long-term periods of poor investment performance. Therefore, the Fund may hold
securities that present risks that an investment advisor researching individual
securities might seek to avoid. An index fund has operating and other expenses
while an index does not. As a result, over time, index funds tend to
underperform the index. The correlation between fund performance and index
performance may also be affected by the type of passive investment approach used
by a fund (sampling or replication), changes in securities markets, changes in
the composition of the index, and the timing of purchases and sales of fund
shares. Errors or delays in compiling or rebalancing the Index may impact the
performance of the Fund and increase transaction
costs.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Securitized
Products Risk. Investments
in securitized products are subject to risks similar to traditional fixed-income
securities, such as credit, interest rate, liquidity, prepayment, extension, and
default risk, as well as additional risks associated with the nature of the
assets and the servicing of those assets. Unscheduled prepayments on securitized
products may have to be reinvested at lower rates. A reduction in prepayments
may increase the effective maturities of these securities, exposing them to the
risk of decline in market value over time (extension
risk).
U.S.
Government Securities Risk. Yields
available from U.S. government securities are generally lower than yields from
many other fixed-income securities. The value of U.S. government securities may
be adversely impacted by changes in interest rates, changes in the credit rating
of the U.S. government, or a default by the U.S.
government.
U.S.
Government-Sponsored Securities Risk. Securities
issued by U.S. government-sponsored enterprises such as the Federal Home Loan
Mortgage Corporation, the Federal National Mortgage Association, and the Federal
Home Loan Banks are not issued or guaranteed by the U.S.
government.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect sales charges on Class A shares; if
they did, results would be lower. The table shows for the last one, five, and
ten calendar year periods (or, if shorter, the life of the Fund), how the Fund’s
average annual total returns compare with those of one or more broad measures of
market performance.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
15.42 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(15.80) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
10.42% |
7.47% |
5.53% |
Class A
Return After Taxes on Distributions |
9.17% |
5.59% |
3.75% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
6.61% |
5.55% |
3.96% |
Class J
Return Before Taxes |
13.94% |
8.50% |
6.12% |
Institutional Class Return Before
Taxes |
15.13% |
8.68% |
6.33% |
Class R-1
Return Before Taxes |
14.13% |
7.73% |
5.39% |
Class R-3
Return Before Taxes |
14.51% |
8.06% |
5.73% |
Class R-4
Return Before Taxes |
14.68% |
8.27% |
5.93% |
Class R-5
Return Before Taxes |
14.85% |
8.40% |
6.05% |
S&P
1500 TR (reflects no deduction for
fees, expenses, or taxes) |
25.47% |
15.39% |
11.76% |
S&P
Target Date 2030 Index (reflects no deduction for
fees, expenses, or taxes) |
14.80% |
8.42% |
6.44% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the S&P 1500 TR in order to meet
the revised definition of “broad-based securities market index.”
The S&P Target Date 2030 Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2007), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2007), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A
and J |
Initial
Investment |
$1,000(1) |
A
and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A
and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, and R-5 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME 2035
FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your
investment): None
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.01% |
0.54% |
0.33% |
0.29% |
0.27% |
Acquired
Fund Fees and Expenses |
0.59% |
0.59% |
0.59% |
0.59% |
0.59% |
Total
Annual Fund Operating Expenses |
0.60% |
1.48% |
1.17% |
0.98% |
0.86% |
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Institutional
Class |
$61 |
$192 |
$335 |
$750 |
Class
R-1 |
151 |
468 |
808 |
1,768 |
Class
R-3 |
119 |
372 |
644 |
1,420 |
Class
R-4 |
100 |
312 |
542 |
1,201 |
Class
R-5 |
88 |
274 |
477 |
1,061 |
Portfolio
Turnover
The Fund and each underlying fund pays transaction costs, such as
commissions, when it buys and sells securities (or “turns over” its portfolio).
A higher portfolio turnover rate may indicate higher transaction costs. These
costs, which are not reflected in Annual Fund Operating Expenses or in the
Example, affect the Fund’s and the underlying fund's performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 12.3% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds and invests in
underlying funds of Principal Funds, Inc. (“PFI”). Its underlying funds consist
of domestic and foreign equity funds, fixed-income funds, real asset funds, and
other funds that aim to offer diversification beyond traditional equity and
fixed-income securities. The asset class diversification of the Fund is designed
to moderate overall price volatility. The Fund may add, remove, or substitute
underlying funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
securities, securities denominated in foreign currencies, investment companies
(including index funds), U.S. government and U.S. government-sponsored
securities, and derivatives. A derivative is a financial arrangement, the value
of which is derived from, or based on, a traditional security, asset, or market
index. The underlying funds principally use futures, options, swaps (including,
for example, credit default, interest rate, and currency swaps), and forwards in
order to gain exposure to a variety of securities or asset classes or attempt to
reduce risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Strategic Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Strategic Income Fund if the Board of Directors determines
that the combination is in the best interests of Fund shareholders. It is
expected that at the target date in the Fund’s name, the shareholder will begin
gradually withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Credit
Default Swaps.
Credit default swaps involve special risks in addition to those associated with
swaps generally because they are difficult to value, are highly susceptible to
liquidity and credit risk, and generally pay a return to the party that has paid
the premium only in the event of an actual default by the issuer of the
underlying obligation (as opposed to a credit downgrade or other indication of
financial difficulty). The protection “buyer” in a credit default contract may
be obligated to pay the protection “seller” an up-front payment or a periodic
stream of payments over the term of the contract, provided, generally, that no
credit event on a reference obligation has occurred. If a credit event occurs,
the seller generally must pay the buyer the “par value” (i.e., full notional
value) of the swap in exchange for an equal face amount of deliverable
obligations of the reference entity described in the swap, or the seller may be
required to deliver the related net cash amount, if the swap is cash settled.
The Fund may be either the buyer or seller in the
transaction.
•Forward
Contracts, Futures, and Swaps. Forward
contracts, futures, and swaps involve specific risks, including: the imperfect
correlation between the change in market value of the instruments held by the
fund and the price of the forward contract, future, or swap; possible lack of a
liquid secondary market for a forward contract, future, or swap and the
resulting inability to close a forward contract, future, or swap when desired;
counterparty risk; and if the fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Index
Fund Risk. Index
funds use a passive investment approach and generally do not attempt to manage
market volatility, use defensive strategies, or reduce the effect of any
long-term periods of poor investment performance. Therefore, the Fund may hold
securities that present risks that an investment advisor researching individual
securities might seek to avoid. An index fund has operating and other expenses
while an index does not. As a result, over time, index funds tend to
underperform the index. The correlation between fund performance and index
performance may also be affected by the type of passive investment approach used
by a fund (sampling or replication), changes in securities markets, changes in
the composition of the index, and the timing of purchases and sales of fund
shares. Errors or delays in compiling or rebalancing the Index may impact the
performance of the Fund and increase transaction
costs.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Securitized
Products Risk. Investments
in securitized products are subject to risks similar to traditional fixed-income
securities, such as credit, interest rate, liquidity, prepayment, extension, and
default risk, as well as additional risks associated with the nature of the
assets and the servicing of those assets. Unscheduled prepayments on securitized
products may have to be reinvested at lower rates. A reduction in prepayments
may increase the effective maturities of these securities, exposing them to the
risk of decline in market value over time (extension
risk).
U.S.
Government Securities Risk. Yields
available from U.S. government securities are generally lower than yields from
many other fixed-income securities. The value of U.S. government securities may
be adversely impacted by changes in interest rates, changes in the credit rating
of the U.S. government, or a default by the U.S.
government.
U.S.
Government-Sponsored Securities Risk. Securities
issued by U.S. government-sponsored enterprises such as the Federal Home Loan
Mortgage Corporation, the Federal National Mortgage Association, and the Federal
Home Loan Banks are not issued or guaranteed by the U.S.
government.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Total Returns as of
December 31
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Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
17.13 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(17.37) |
% |
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Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Institutional Class Return Before
Taxes |
16.53% |
9.41% |
6.79% |
Institutional Class Return After Taxes
on Distributions |
15.16% |
7.62% |
5.09% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
10.34% |
7.09% |
4.98% |
Class R-1
Return Before Taxes |
15.58% |
8.46% |
5.86% |
Class R-3
Return Before Taxes |
15.88% |
8.80% |
6.19% |
Class R-4
Return Before Taxes |
16.21% |
9.02% |
6.39% |
Class R-5
Return Before Taxes |
16.27% |
9.14% |
6.52% |
S&P
1500 TR (reflects no deduction for
fees, expenses, or taxes) |
25.47% |
15.39% |
11.76% |
S&P
Target Date 2035 Index (reflects no deduction for
fees, expenses, or taxes) |
16.63% |
9.44% |
7.04% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the S&P 1500 TR in order to meet
the revised definition of “broad-based securities market index.”
The S&P Target Date 2035 Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2008), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2008), Portfolio Manager
Purchase
and Sale of Fund Shares
For
Classes R-1, R-3, R-4, R-5, and Institutional Class shares, there are no minimum
initial or subsequent investment requirements for eligible purchasers.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME 2040
FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
You
may qualify for sales charge discounts if you and your family invest, or agree
to invest in the future, at least $50,000 in Class A Shares of Principal Funds,
Inc. More information about these and other discounts is available from your
financial intermediary and in “Choosing a Share Class and The Costs of
Investing” beginning on page 426 of the Fund’s Prospectus, Appendix B to the
Prospectus titled “Intermediary-Specific Sales Charge Waivers and Reductions,”
and “Multiple Class Structure” beginning on page 70 of the Fund’s Statement of
Additional Information.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
|
A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.50% |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
|
A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.15% |
0.05% |
0.01% |
0.53% |
0.32% |
0.28% |
0.26% |
Acquired
Fund Fees and Expenses |
0.62% |
0.62% |
0.62% |
0.62% |
0.62% |
0.62% |
0.62% |
Total
Annual Fund Operating Expenses |
1.02% |
0.82% |
0.63% |
1.50% |
1.19% |
1.00% |
0.88% |
Expense
Reimbursement (1) |
(0.02)% |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
Total
Annual Fund Operating Expenses after Expense Reimbursement |
1.00% |
0.82% |
0.63% |
1.50% |
1.19% |
1.00% |
0.88% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.38% for Class A shares. It is expected that the expense limit will
continue through the period ending February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limit prior to the end of
the period. Subject to applicable expense limits, the Fund may reimburse PGI for
expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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1
year |
3
years |
5
years |
10
years |
Class
A |
$646 |
$855 |
$1,080 |
$1,727 |
Class
J |
184 |
262 |
455 |
1,014 |
Institutional
Class |
64 |
202 |
351 |
786 |
Class
R-1 |
153 |
474 |
818 |
1,791 |
Class
R-3 |
121 |
378 |
654 |
1,443 |
Class
R-4 |
102 |
318 |
552 |
1,225 |
Class
R-5 |
90 |
281 |
488 |
1,084 |
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
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| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$84 |
$262 |
$455 |
$1,014 |
Portfolio
Turnover
The Fund and each underlying fund pays transaction costs, such as
commissions, when it buys and sells securities (or “turns over” its portfolio).
A higher portfolio turnover rate may indicate higher transaction costs. These
costs, which are not reflected in Annual Fund Operating Expenses or in the
Example, affect the Fund’s and the underlying fund's performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 12.4% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds and invests in
underlying funds of Principal Funds, Inc. (“PFI”). Its underlying funds consist
of domestic and foreign equity funds, fixed-income funds, real asset funds, and
other funds that aim to offer diversification beyond traditional equity and
fixed-income securities. The asset class diversification of the Fund is designed
to moderate overall price volatility. The Fund may add, remove, or substitute
underlying funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
(including those in emerging markets) securities, securities denominated in
foreign currencies, investment companies (including index funds), U.S.
government and U.S. government-sponsored securities, and derivatives. A
derivative is a financial arrangement, the value of which is derived from, or
based on, a traditional security, asset, or market index. The underlying funds
principally use equity index futures and options in order to gain exposure to a
variety of securities or asset classes or attempt to reduce risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Strategic Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Strategic Income Fund if the Board of Directors determines
that the combination is in the best interests of Fund shareholders. It is
expected that at the target date in the Fund’s name, the shareholder will begin
gradually withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Futures.
Futures
contracts involve specific risks, including: the imperfect correlation between
the change in market value of the instruments held by the Fund and the price of
the futures contract; possible lack of a liquid secondary market for a futures
contract and the resulting inability to close a futures contract when desired;
counterparty risk; and if the Fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Emerging
Markets Risk. Investments
in emerging markets may have more risk than those in developed markets because
the emerging markets are less developed and more illiquid. Emerging markets can
also be subject to increased social, economic, regulatory, and political
uncertainties and can be extremely volatile. The U.S. Securities and Exchange
Commission, the U.S. Department of Justice, and other U.S. authorities may be
limited in their ability to pursue bad actors in emerging markets, including
with respect to fraud.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Index
Fund Risk. Index
funds use a passive investment approach and generally do not attempt to manage
market volatility, use defensive strategies, or reduce the effect of any
long-term periods of poor investment performance. Therefore, the Fund may hold
securities that present risks that an investment advisor researching individual
securities might seek to avoid. An index fund has operating and other expenses
while an index does not. As a result, over time, index funds tend to
underperform the index. The correlation between fund performance and index
performance may also be affected by the type of passive investment approach used
by a fund (sampling or replication), changes in securities markets, changes in
the composition of the index, and the timing of purchases and sales of fund
shares. Errors or delays in compiling or rebalancing the Index may impact the
performance of the Fund and increase transaction
costs.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Securitized
Products Risk. Investments
in securitized products are subject to risks similar to traditional fixed-income
securities, such as credit, interest rate, liquidity, prepayment, extension, and
default risk, as well as additional risks associated with the nature of the
assets and the servicing of those assets. Unscheduled prepayments on securitized
products may have to be reinvested at lower rates. A reduction in prepayments
may increase the effective maturities of these securities, exposing them to the
risk of decline in market value over time (extension
risk).
U.S.
Government Securities Risk. Yields
available from U.S. government securities are generally lower than yields from
many other fixed-income securities. The value of U.S. government securities may
be adversely impacted by changes in interest rates, changes in the credit rating
of the U.S. government, or a default by the U.S.
government.
U.S.
Government-Sponsored Securities Risk. Securities
issued by U.S. government-sponsored enterprises such as the Federal Home Loan
Mortgage Corporation, the Federal National Mortgage Association, and the Federal
Home Loan Banks are not issued or guaranteed by the U.S.
government.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect sales charges on Class A shares; if
they did, results would be lower. The table shows for the last one, five, and
ten calendar year periods (or, if shorter, the life of the Fund), how the Fund’s
average annual total returns compare with those of one or more broad measures of
market performance.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
17.96 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(18.87) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
11.44% |
8.50% |
6.19% |
Class A
Return After Taxes on Distributions |
10.22% |
6.66% |
4.44% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
7.39% |
6.42% |
4.52% |
Class J
Return Before Taxes |
17.10% |
9.94% |
6.95% |
Institutional Class Return Before
Taxes |
18.36% |
10.14% |
7.18% |
Class R-1
Return Before Taxes |
17.28% |
9.18% |
6.24% |
Class R-3
Return Before Taxes |
17.63% |
9.53% |
6.58% |
Class R-4
Return Before Taxes |
17.83% |
9.74% |
6.78% |
Class R-5
Return Before Taxes |
18.04% |
9.86% |
6.91% |
S&P
1500 TR (reflects no deduction for
fees, expenses, or taxes) |
25.47% |
15.39% |
11.76% |
S&P
Target Date 2040 Index (reflects no deduction for
fees, expenses, or taxes) |
18.16% |
10.22% |
7.49% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Effective March
1, 2024, the Fund changed its primary broad-based index to the S&P 1500 TR
in order to meet the revised definition of “broad-based securities market
index.” The S&P Target Date 2040 Index is included as an
additional index for the Fund as it shows how the Fund’s performance compares
with the returns of an index of funds with similar investment
objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2007), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2007), Portfolio Manager
Purchase
and Sale of Fund Shares
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|
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| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A
and J |
Initial
Investment |
$1,000(1) |
A
and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A
and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, and R-5 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME 2045
FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your
investment): None
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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| |
|
Share
Class |
|
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.01% |
0.54% |
0.33% |
0.29% |
0.27% |
Acquired
Fund Fees and Expenses |
0.64% |
0.64% |
0.64% |
0.64% |
0.64% |
Total
Annual Fund Operating Expenses |
0.65% |
1.53% |
1.22% |
1.03% |
0.91% |
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
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|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Institutional
Class |
$66 |
$208 |
$362 |
$810 |
Class
R-1 |
156 |
483 |
834 |
1,824 |
Class
R-3 |
124 |
387 |
670 |
1,477 |
Class
R-4 |
105 |
328 |
569 |
1,259 |
Class
R-5 |
93 |
290 |
504 |
1,120 |
Portfolio
Turnover
The Fund and each underlying fund pays transaction costs, such as
commissions, when it buys and sells securities (or “turns over” its portfolio).
A higher portfolio turnover rate may indicate higher transaction costs. These
costs, which are not reflected in Annual Fund Operating Expenses or in the
Example, affect the Fund’s and the underlying fund's performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 11.4% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds and invests in
underlying funds of Principal Funds, Inc. (“PFI”). Its underlying funds consist
of domestic and foreign equity funds, fixed-income funds, real asset funds, and
other funds that aim to offer diversification beyond traditional equity and
fixed-income securities. The asset class diversification of the Fund is designed
to moderate overall price volatility. The Fund may add, remove, or substitute
underlying funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
(including those in emerging markets) securities, securities denominated in
foreign currencies, investment companies (including index funds), and
derivatives. A derivative is a financial arrangement, the value of which is
derived from, or based on, a traditional security, asset, or market index. The
underlying funds principally use equity index futures and options in order to
gain exposure to a variety of securities or asset classes or attempt to reduce
risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Strategic Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Strategic Income Fund if the Board of Directors determines
that the combination is in the best interests of Fund shareholders. It is
expected that at the target date in the Fund’s name, the shareholder will begin
gradually withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Futures.
Futures
contracts involve specific risks, including: the imperfect correlation between
the change in market value of the instruments held by the Fund and the price of
the futures contract; possible lack of a liquid secondary market for a futures
contract and the resulting inability to close a futures contract when desired;
counterparty risk; and if the Fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Emerging
Markets Risk. Investments
in emerging markets may have more risk than those in developed markets because
the emerging markets are less developed and more illiquid. Emerging markets can
also be subject to increased social, economic, regulatory, and political
uncertainties and can be extremely volatile. The U.S. Securities and Exchange
Commission, the U.S. Department of Justice, and other U.S. authorities may be
limited in their ability to pursue bad actors in emerging markets, including
with respect to fraud.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Index
Fund Risk. Index
funds use a passive investment approach and generally do not attempt to manage
market volatility, use defensive strategies, or reduce the effect of any
long-term periods of poor investment performance. Therefore, the Fund may hold
securities that present risks that an investment advisor researching individual
securities might seek to avoid. An index fund has operating and other expenses
while an index does not. As a result, over time, index funds tend to
underperform the index. The correlation between fund performance and index
performance may also be affected by the type of passive investment approach used
by a fund (sampling or replication), changes in securities markets, changes in
the composition of the index, and the timing of purchases and sales of fund
shares. Errors or delays in compiling or rebalancing the Index may impact the
performance of the Fund and increase transaction
costs.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
18.90 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(19.94) |
% |
|
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|
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|
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|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Institutional Class Return Before
Taxes |
19.44% |
10.68% |
7.49% |
Institutional Class Return After Taxes
on Distributions |
18.15% |
8.95% |
5.87% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
12.22% |
8.18% |
5.61% |
Class R-1
Return Before Taxes |
18.55% |
9.73% |
6.55% |
Class R-3
Return Before Taxes |
18.87% |
10.05% |
6.88% |
Class R-4
Return Before Taxes |
19.08% |
10.27% |
7.09% |
Class R-5
Return Before Taxes |
19.19% |
10.40% |
7.21% |
S&P
1500 TR (reflects no deduction for
fees, expenses, or taxes) |
25.47% |
15.39% |
11.76% |
S&P
Target Date 2045 Index (reflects no deduction for
fees, expenses, or taxes) |
19.14% |
10.68% |
7.76% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the S&P 1500 TR in order to meet
the revised definition of “broad-based securities market index.”
The S&P Target Date 2045 Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2008), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2008), Portfolio Manager
Purchase
and Sale of Fund Shares
For
Classes R-1, R-3, R-4, R-5, and Institutional Class shares, there are no minimum
initial or subsequent investment requirements for eligible purchasers.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME 2050
FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
You
may qualify for sales charge discounts if you and your family invest, or agree
to invest in the future, at least $50,000 in Class A Shares of Principal Funds,
Inc. More information about these and other discounts is available from your
financial intermediary and in “Choosing a Share Class and The Costs of
Investing” beginning on page 426 of the Fund’s Prospectus, Appendix B to the
Prospectus titled “Intermediary-Specific Sales Charge Waivers and Reductions,”
and “Multiple Class Structure” beginning on page 70 of the Fund’s Statement of
Additional Information.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
|
A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.50% |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
|
A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.21% |
0.10% |
0.01% |
0.53% |
0.32% |
0.28% |
0.26% |
Acquired
Fund Fees and Expenses |
0.66% |
0.66% |
0.66% |
0.66% |
0.66% |
0.66% |
0.66% |
Total
Annual Fund Operating Expenses |
1.12% |
0.91% |
0.67% |
1.54% |
1.23% |
1.04% |
0.92% |
Expense
Reimbursement (1) |
(0.08)% |
N/A |
N/A |
N/A |
N/A |
N/A |
N/A |
Total
Annual Fund Operating Expenses after Expense Reimbursement |
1.04% |
0.91% |
0.67% |
1.54% |
1.23% |
1.04% |
0.92% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.38% for Class A shares. It is expected that the expense limit will
continue through the period ending February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limit prior to the end of
the period. Subject to applicable expense limits, the Fund may reimburse PGI for
expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
A |
$650 |
$879 |
$1,126 |
$1,831 |
Class
J |
193 |
290 |
504 |
1,120 |
Institutional
Class |
68 |
214 |
373 |
835 |
Class
R-1 |
157 |
486 |
839 |
1,834 |
Class
R-3 |
125 |
390 |
676 |
1,489 |
Class
R-4 |
106 |
331 |
574 |
1,271 |
Class
R-5 |
94 |
293 |
509 |
1,131 |
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$93 |
$290 |
$504 |
$1,120 |
Portfolio
Turnover
The Fund and each underlying fund pays transaction costs, such as
commissions, when it buys and sells securities (or “turns over” its portfolio).
A higher portfolio turnover rate may indicate higher transaction costs. These
costs, which are not reflected in Annual Fund Operating Expenses or in the
Example, affect the Fund’s and the underlying fund's performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 10.6% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds and invests in
underlying funds of Principal Funds, Inc. (“PFI”). Its underlying funds consist
of domestic and foreign equity funds, fixed-income funds, real asset funds, and
other funds that aim to offer diversification beyond traditional equity and
fixed-income securities. The asset class diversification of the Fund is designed
to moderate overall price volatility. The Fund may add, remove, or substitute
underlying funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
(including those in emerging markets) securities, securities denominated in
foreign currencies, investment companies (including index funds), and
derivatives. A derivative is a financial arrangement, the value of which is
derived from, or based on, a traditional security, asset, or market index. The
underlying funds principally use equity index futures and options in order to
gain exposure to a variety of securities or asset classes or attempt to reduce
risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Strategic Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Strategic Income Fund if the Board of Directors determines
that the combination is in the best interests of Fund shareholders. It is
expected that at the target date in the Fund’s name, the shareholder will begin
gradually withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Futures.
Futures
contracts involve specific risks, including: the imperfect correlation between
the change in market value of the instruments held by the Fund and the price of
the futures contract; possible lack of a liquid secondary market for a futures
contract and the resulting inability to close a futures contract when desired;
counterparty risk; and if the Fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Emerging
Markets Risk. Investments
in emerging markets may have more risk than those in developed markets because
the emerging markets are less developed and more illiquid. Emerging markets can
also be subject to increased social, economic, regulatory, and political
uncertainties and can be extremely volatile. The U.S. Securities and Exchange
Commission, the U.S. Department of Justice, and other U.S. authorities may be
limited in their ability to pursue bad actors in emerging markets, including
with respect to fraud.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Index
Fund Risk. Index
funds use a passive investment approach and generally do not attempt to manage
market volatility, use defensive strategies, or reduce the effect of any
long-term periods of poor investment performance. Therefore, the Fund may hold
securities that present risks that an investment advisor researching individual
securities might seek to avoid. An index fund has operating and other expenses
while an index does not. As a result, over time, index funds tend to
underperform the index. The correlation between fund performance and index
performance may also be affected by the type of passive investment approach used
by a fund (sampling or replication), changes in securities markets, changes in
the composition of the index, and the timing of purchases and sales of fund
shares. Errors or delays in compiling or rebalancing the Index may impact the
performance of the Fund and increase transaction
costs.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect sales charges on Class A shares; if
they did, results would be lower. The table shows for the last one, five, and
ten calendar year periods (or, if shorter, the life of the Fund), how the Fund’s
average annual total returns compare with those of one or more broad measures of
market performance.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
19.45 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(20.88) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
13.34% |
9.42% |
6.69% |
Class A
Return After Taxes on Distributions |
12.22% |
7.71% |
5.08% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
8.59% |
7.21% |
4.97% |
Class J
Return Before Taxes |
19.09% |
10.83% |
7.40% |
Institutional Class Return Before
Taxes |
20.40% |
11.07% |
7.70% |
Class R-1
Return Before Taxes |
19.36% |
10.10% |
6.76% |
Class R-3
Return Before Taxes |
19.69% |
10.45% |
7.09% |
Class R-4
Return Before Taxes |
19.93% |
10.65% |
7.29% |
Class R-5
Return Before Taxes |
20.15% |
10.79% |
7.42% |
S&P
1500 TR (reflects no deduction for
fees, expenses, or taxes) |
25.47% |
15.39% |
11.76% |
S&P
Target Date 2050 Index (reflects no deduction for
fees, expenses, or taxes) |
19.58% |
10.92% |
7.92% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the S&P 1500 TR in order to meet
the revised definition of “broad-based securities market index.”
The S&P Target Date 2050 Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2007), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2007), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A
and J |
Initial
Investment |
$1,000(1) |
A
and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A
and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, and R-5 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME 2055
FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your
investment): None
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.01% |
0.54% |
0.33% |
0.29% |
0.27% |
Acquired
Fund Fees and Expenses |
0.66% |
0.66% |
0.66% |
0.66% |
0.66% |
Total
Annual Fund Operating Expenses |
0.67% |
1.55% |
1.24% |
1.05% |
0.93% |
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Institutional
Class |
$68 |
$214 |
$373 |
$835 |
Class
R-1 |
158 |
490 |
845 |
1,845 |
Class
R-3 |
126 |
393 |
681 |
1,500 |
Class
R-4 |
107 |
334 |
579 |
1,283 |
Class
R-5 |
95 |
296 |
515 |
1,143 |
Portfolio
Turnover
The
Fund and each underlying fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s
and the underlying fund's performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 10.3% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds and invests in
underlying funds of Principal Funds, Inc. (“PFI”). Its underlying funds consist
of domestic and foreign equity funds, fixed-income funds, real asset funds, and
other funds that aim to offer diversification beyond traditional equity and
fixed-income securities. The asset class diversification of the Fund is designed
to moderate overall price volatility. The Fund may add, remove, or substitute
underlying funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
(including those in emerging markets) securities, securities denominated in
foreign currencies, investment companies (including index funds), and
derivatives. A derivative is a financial arrangement, the value of which is
derived from, or based on, a traditional security, asset, or market index. The
underlying funds principally use equity index futures and options in order to
gain exposure to a variety of securities or asset classes or attempt to reduce
risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Strategic Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Strategic Income Fund if the Board of Directors determines
that the combination is in the best interests of Fund shareholders. It is
expected that at the target date in the Fund’s name, the shareholder will begin
gradually withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is possible to lose money
by investing in the Fund. An investment in the
Fund is not a deposit of a bank and is not insured or guaranteed by the Federal
Deposit Insurance Corporation or any other government agency.
The principal risks of investing in the Fund are listed below in alphabetical
order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund
shareholders bear indirectly their proportionate share of the expenses of other
investment companies (for example, other mutual funds or exchange-traded funds)
in which the Fund invests (“underlying funds”). The Fund’s selection and
weighting of asset classes and allocation of investments in underlying funds may
cause it to underperform other funds with a similar investment objective. The
Fund’s performance and risks correspond directly to the performance and risks of
the underlying funds in which it invests, proportionately in accordance with the
weightings of such investments, and there is no assurance that the underlying
funds will achieve their investment objectives. Management of the Fund entails
potential conflicts of interest: the Fund invests in affiliated underlying
funds; and PGI and its affiliates may earn different fees from different
underlying funds and may have an incentive to allocate more Fund assets to
underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Futures.
Futures
contracts involve specific risks, including: the imperfect correlation between
the change in market value of the instruments held by the Fund and the price of
the futures contract; possible lack of a liquid secondary market for a futures
contract and the resulting inability to close a futures contract when desired;
counterparty risk; and if the Fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Emerging
Markets Risk. Investments
in emerging markets may have more risk than those in developed markets because
the emerging markets are less developed and more illiquid. Emerging markets can
also be subject to increased social, economic, regulatory, and political
uncertainties and can be extremely volatile. The U.S. Securities and Exchange
Commission, the U.S. Department of Justice, and other U.S. authorities may be
limited in their ability to pursue bad actors in emerging markets, including
with respect to fraud.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Index
Fund Risk. Index
funds use a passive investment approach and generally do not attempt to manage
market volatility, use defensive strategies, or reduce the effect of any
long-term periods of poor investment performance. Therefore, the Fund may hold
securities that present risks that an investment advisor researching individual
securities might seek to avoid. An index fund has operating and other expenses
while an index does not. As a result, over time, index funds tend to
underperform the index. The correlation between fund performance and index
performance may also be affected by the type of passive investment approach used
by a fund (sampling or replication), changes in securities markets, changes in
the composition of the index, and the timing of purchases and sales of fund
shares. Errors or delays in compiling or rebalancing the Index may impact the
performance of the Fund and increase transaction
costs.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Total Returns as of
December 31
|
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|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
19.93 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(21.46) |
% |
|
|
|
|
|
|
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|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Institutional Class Return Before
Taxes |
20.38% |
11.26% |
7.80% |
Institutional Class Return After Taxes
on Distributions |
19.14% |
9.70% |
6.38% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
12.81% |
8.71% |
5.94% |
Class R-1
Return Before Taxes |
19.35% |
10.30% |
6.87% |
Class R-3
Return Before Taxes |
19.70% |
10.65% |
7.20% |
Class R-4
Return Before Taxes |
19.93% |
10.86% |
7.41% |
Class R-5
Return Before Taxes |
20.05% |
10.98% |
7.53% |
S&P
1500 TR (reflects no deduction for
fees, expenses, or taxes) |
25.47% |
15.39% |
11.76% |
S&P
Target Date 2055 Index (reflects no deduction for
fees, expenses, or taxes) |
19.62% |
10.98% |
7.99% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the S&P 1500 TR in order to meet
the revised definition of “broad-based securities market index.”
The S&P Target Date 2055 Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2008), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2008), Portfolio Manager
Purchase
and Sale of Fund Shares
For
Classes R-1, R-3, R-4, R-5, and Institutional Class shares, there are no minimum
initial or subsequent investment requirements for eligible purchasers.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME
2060 FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
|
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|
|
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|
|
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| |
|
Share
Class |
|
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Maximum
Deferred Sales Charge (Load)
(as
a percentage of the offering price or NAV when Sales Load is paid,
whichever is less) |
1.00% |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
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|
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|
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|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.31% |
0.01% |
0.54% |
0.33% |
0.29% |
0.27% |
Acquired
Fund Fees and Expenses |
0.66% |
0.66% |
0.66% |
0.66% |
0.66% |
0.66% |
Total
Annual Fund Operating Expenses |
1.12% |
0.67% |
1.55% |
1.24% |
1.05% |
0.93% |
Expense
Reimbursement
(1) |
(0.08)% |
N/A |
N/A |
N/A |
N/A |
N/A |
Total
Annual Fund Operating Expenses after Expense Reimbursement |
1.04% |
0.67% |
1.55% |
1.24% |
1.05% |
0.93% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.38% for Class J shares. It is expected that the expense limit will
continue through the period ending February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limit prior to the end of
the period. Subject to applicable expense limits, the Fund may reimburse PGI for
expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$206 |
$348 |
$609 |
$1,356 |
Institutional
Class |
68 |
214 |
373 |
835 |
Class
R-1 |
158 |
490 |
845 |
1,845 |
Class
R-3 |
126 |
393 |
681 |
1,500 |
Class
R-4 |
107 |
334 |
579 |
1,283 |
Class
R-5 |
95 |
296 |
515 |
1,143 |
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$106 |
$348 |
$609 |
$1,356 |
Portfolio
Turnover
The
Fund and each underlying fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s
and the underlying fund's performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 10.6% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds and invests in
underlying funds of Principal Funds, Inc. (“PFI”). Its underlying funds consist
of domestic and foreign equity funds, fixed-income funds, real asset funds, and
other funds that aim to offer diversification beyond traditional equity and
fixed-income securities. The asset class diversification of the Fund is designed
to moderate overall price volatility. The Fund may add, remove, or substitute
underlying funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
(including those in emerging markets) securities, securities denominated in
foreign currencies, investment companies (including index funds), and
derivatives. A derivative is a financial arrangement, the value of which is
derived from, or based on, a traditional security, asset, or market index. The
underlying funds principally use equity index futures and options in order to
gain exposure to a variety of securities or asset classes or attempt to reduce
risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Strategic Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Strategic Income Fund if the Board of Directors determines
that the combination is in the best interests of Fund shareholders. It is
expected that at the target date in the Fund’s name, the shareholder will begin
gradually withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Futures.
Futures
contracts involve specific risks, including: the imperfect correlation between
the change in market value of the instruments held by the Fund and the price of
the futures contract; possible lack of a liquid secondary market for a futures
contract and the resulting inability to close a futures contract when desired;
counterparty risk; and if the Fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Emerging
Markets Risk. Investments
in emerging markets may have more risk than those in developed markets because
the emerging markets are less developed and more illiquid. Emerging markets can
also be subject to increased social, economic, regulatory, and political
uncertainties and can be extremely volatile. The U.S. Securities and Exchange
Commission, the U.S. Department of Justice, and other U.S. authorities may be
limited in their ability to pursue bad actors in emerging markets, including
with respect to fraud.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Index
Fund Risk. Index
funds use a passive investment approach and generally do not attempt to manage
market volatility, use defensive strategies, or reduce the effect of any
long-term periods of poor investment performance. Therefore, the Fund may hold
securities that present risks that an investment advisor researching individual
securities might seek to avoid. An index fund has operating and other expenses
while an index does not. As a result, over time, index funds tend to
underperform the index. The correlation between fund performance and index
performance may also be affected by the type of passive investment approach used
by a fund (sampling or replication), changes in securities markets, changes in
the composition of the index, and the timing of purchases and sales of fund
shares. Errors or delays in compiling or rebalancing the Index may impact the
performance of the Fund and increase transaction
costs.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
20.12 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(21.80) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Institutional Class Return Before
Taxes |
20.40% |
11.42% |
7.85% |
Institutional Class Return After Taxes
on Distributions |
19.17% |
9.93% |
6.62% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
12.81% |
8.86% |
6.05% |
Class J
Return Before Taxes |
18.96% |
10.99% |
7.46% |
Class R-1
Return Before Taxes |
19.33% |
10.43% |
6.91% |
Class R-3
Return Before Taxes |
19.72% |
10.80% |
7.26% |
Class R-4
Return Before Taxes |
19.95% |
11.01% |
7.46% |
Class R-5
Return Before Taxes |
20.06% |
11.12% |
7.58% |
S&P
1500 TR (reflects no deduction for
fees, expenses, or taxes) |
25.47% |
15.39% |
11.76% |
S&P
Target Date 2060 Index (reflects no deduction for
fees, expenses, or taxes) |
19.74% |
11.04% |
8.04% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the S&P 1500 TR in order to meet
the revised definition of “broad-based securities market index.”
The S&P Target Date 2060 Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2013), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2013), Portfolio Manager
Purchase
and Sale of Fund Shares
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Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, and R-5 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME
2065 FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment): None
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
|
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.04% |
0.55% |
0.34% |
0.30% |
0.28% |
Acquired
Fund Fees and Expenses |
0.66% |
0.66% |
0.66% |
0.66% |
0.66% |
Total
Annual Fund Operating Expenses |
0.70% |
1.56% |
1.25% |
1.06% |
0.94% |
Example
This
Example is intended to help you compare the cost of investing in the Fund with
the cost of investing in other mutual funds. The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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| 1
year |
3
years |
5
years |
10
years |
Institutional
Class |
$72 |
$224 |
$390 |
$871 |
Class
R-1 |
159 |
493 |
850 |
1,856 |
Class
R-3 |
127 |
397 |
686 |
1,511 |
Class
R-4 |
108 |
337 |
585 |
1,294 |
Class
R-5 |
96 |
300 |
520 |
1,155 |
Portfolio
Turnover
The
Fund and each underlying fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s
and the underlying fund's performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 13.7% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds and invests in
underlying funds of Principal Funds, Inc. (“PFI”). Its underlying funds consist
of domestic and foreign equity funds, fixed-income funds, real asset funds, and
other funds that aim to offer diversification beyond traditional equity and
fixed-income securities. The asset class diversification of the Fund is designed
to moderate overall price volatility. The Fund may add, remove, or substitute
underlying funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
(including those in emerging markets) securities, securities denominated in
foreign currencies, investment companies (including index funds), and
derivatives. A derivative is a financial arrangement, the value of which is
derived from, or based on, a traditional security, asset, or market index. The
underlying funds principally use equity index futures and options in order to
gain exposure to a variety of securities or asset classes or attempt to reduce
risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Strategic Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Strategic Income Fund if the Board of Directors determines
that the combination is in the best interests of Fund shareholders. It is
expected that at the target date in the Fund’s name, the shareholder will begin
gradually withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Futures.
Futures
contracts involve specific risks, including: the imperfect correlation between
the change in market value of the instruments held by the Fund and the price of
the futures contract; possible lack of a liquid secondary market for a futures
contract and the resulting inability to close a futures contract when desired;
counterparty risk; and if the Fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Emerging
Markets Risk. Investments
in emerging markets may have more risk than those in developed markets because
the emerging markets are less developed and more illiquid. Emerging markets can
also be subject to increased social, economic, regulatory, and political
uncertainties and can be extremely volatile. The U.S. Securities and Exchange
Commission, the U.S. Department of Justice, and other U.S. authorities may be
limited in their ability to pursue bad actors in emerging markets, including
with respect to fraud.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Index
Fund Risk. Index
funds use a passive investment approach and generally do not attempt to manage
market volatility, use defensive strategies, or reduce the effect of any
long-term periods of poor investment performance. Therefore, the Fund may hold
securities that present risks that an investment advisor researching individual
securities might seek to avoid. An index fund has operating and other expenses
while an index does not. As a result, over time, index funds tend to
underperform the index. The correlation between fund performance and index
performance may also be affected by the type of passive investment approach used
by a fund (sampling or replication), changes in securities markets, changes in
the composition of the index, and the timing of purchases and sales of fund
shares. Errors or delays in compiling or rebalancing the Index may impact the
performance of the Fund and increase transaction
costs.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Life
of Fund returns are measured from the date the Fund’s shares were first sold
(September 6, 2017).
Total Returns as of
December 31
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Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
20.50 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(21.97) |
% |
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| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
Life
of Fund |
Institutional Class Return Before
Taxes |
20.30% |
11.43% |
8.54% |
Institutional Class Return After Taxes
on Distributions |
19.23% |
10.30% |
7.40% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
12.66% |
8.92% |
6.54% |
Class R-1
Return Before Taxes |
19.35% |
10.53% |
7.67% |
Class R-3
Return Before Taxes |
19.70% |
10.84% |
7.98% |
Class R-4
Return Before Taxes |
19.93% |
11.05% |
8.19% |
Class R-5
Return Before Taxes |
20.08% |
11.18% |
8.33% |
S&P
1500 TR (reflects no deduction for
fees, expenses, or taxes) |
25.47% |
15.39% |
12.72% |
S&P
Target Date 2065+ Index (reflects no deduction for
fees, expenses, or taxes) |
19.84% |
11.09% |
8.61% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the S&P 1500 TR in order to meet
the revised definition of “broad-based securities market index.”
The S&P Target Date 2065+ Index
is included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2017), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2017), Portfolio Manager
Purchase
and Sale of Fund Shares
For
Classes R-1, R-3, R-4, R-5, and Institutional Class shares, there are no minimum
initial or subsequent investment requirements for eligible purchasers.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME
2070 FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
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J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Maximum
Deferred Sales Charge (Load)
(as
a percentage of the offering price or NAV when Sales Load is paid,
whichever is less) |
1.00% |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
|
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
62.50% |
1.53% |
3.74% |
3.12% |
7.56% |
3.56% |
Acquired
Fund Fees and Expenses |
0.67% |
0.67% |
0.67% |
0.67% |
0.67% |
0.67% |
Total
Annual Fund Operating Expenses |
63.32% |
2.20% |
4.76% |
4.04% |
8.33% |
4.23% |
Expense
Reimbursement (1) |
(62.35)% |
(1.48)% |
(3.16)% |
(2.75)% |
(7.23)% |
(3.25)% |
Total
Annual Fund Operating Expenses after Expense Reimbursement |
0.97% |
0.72% |
1.60% |
1.29% |
1.10% |
0.98% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund's expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.30% for Class J, 0.05% for Institutional Class, 0.93% for Class R-1,
0.62% for Class R-3, 0.43% for Class R-4 and 0.31% for Class R-5 shares. It is
expected that the expense limits will continue through the period ending
February 28, 2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limits prior to the end
of the period. Subject to applicable expense limits, the Fund may reimburse PGI
for expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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1
year |
3
years |
5
years |
10
years |
Class
J |
$199 |
$6,710 |
$7,859 |
$8,097 |
Institutional
Class |
74 |
545 |
1,044 |
2,418 |
Class
R-1 |
163 |
1,149 |
2,141 |
4,641 |
Class
R-3 |
131 |
977 |
1,840 |
4,069 |
Class
R-4 |
112 |
1,786 |
3,350 |
6,827 |
Class
R-5 |
100 |
987 |
1,887 |
4,200 |
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
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| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$99 |
$6,710 |
$7,859 |
$8,097 |
Portfolio
Turnover
The
Fund and each underlying fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s
and the underlying fund's performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 94.1% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds and invests in
underlying funds of Principal Funds, Inc. (“PFI”). Its underlying funds consist
of domestic and foreign equity funds, fixed-income funds, real asset funds, and
other funds that aim to offer diversification beyond traditional equity and
fixed-income securities. The asset class diversification of the Fund is designed
to moderate overall price volatility. The Fund may add, remove, or substitute
underlying funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, Principal Global Investors, LLC
(“PGI”), the Fund’s investment advisor, considers both quantitative measures
(e.g., past performance, expected levels of risk and returns, expense levels,
diversification, and style consistency) and qualitative factors (e.g.,
organizational stability, investment experience, investment and risk management
processes, and information, trading, and compliance systems). There are no
minimum or maximum percentages of assets that the Fund must invest in a specific
asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
(including those in emerging markets) securities, securities denominated in
foreign currencies, investment companies (including index funds), and
derivatives. A derivative is a financial arrangement, the value of which is
derived from, or based on, a traditional security, asset, or market index. The
underlying funds principally use equity index futures and options in order to
gain exposure to a variety of securities or asset classes or attempt to reduce
risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Strategic Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Strategic Income Fund if the Board of Directors determines
that the combination is in the best interests of Fund shareholders. It is
expected that at the target date in the Fund’s name, the shareholder will begin
gradually withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A target date fund should not be selected based solely on age or
retirement date because there is no guarantee that this Fund will provide
adequate income at or through retirement.
Principal
Risks due to the Fund’s Investments in Underlying Funds
Counterparty
Risk. Counterparty risk is the risk that the counterparty to a contract or
other obligation will be unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Futures.
Futures contracts involve specific risks, including: the imperfect
correlation between the change in market value of the instruments held by the
Fund and the price of the futures contract; possible lack of a liquid secondary
market for a futures contract and the resulting inability to close a futures
contract when desired; counterparty risk; and if the Fund has insufficient cash,
it may have to sell securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options involve specific risks,
including: the imperfect correlation between the change in market value of the
instruments held by the Fund and the price of the options; counterparty risk;
difference in trading hours for the options markets and the markets for the
underlying securities (rate movements can take place in the underlying markets
that cannot be reflected in the options markets); and an insufficient liquid
secondary market for particular options.
Emerging
Markets Risk. Investments in emerging markets may have more risk than those in
developed markets because the emerging markets are less developed and more
illiquid. Emerging markets can also be subject to increased social, economic,
regulatory, and political uncertainties and can be extremely volatile. The U.S.
Securities and Exchange Commission, the U.S. Department of Justice, and other
U.S. authorities may be limited in their ability to pursue bad actors in
emerging markets, including with respect to fraud.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk. Growth investing entails the risk that if growth companies do not
increase their earnings at a rate expected by investors, the market price of
their stock may decline significantly, even if earnings show an absolute
increase. Growth company stocks also typically lack the dividend yield that can
lessen price declines in market downturns.
•Smaller
Companies Risk. Investments in smaller companies may involve greater risk and price
volatility than investments in larger, more mature companies. Smaller companies
may have limited product lines, markets, or financial resources; lack the
competitive strength of larger companies; have less experienced managers; or
depend on a few key employees. Their securities often are less widely held and
trade less frequently and in lesser quantities, and their market prices often
fluctuate more, than securities of larger companies.
•Value
Style Risk. Value investing entails the risk that
value stocks may continue to be undervalued by the market for extended periods,
including the entire period during which the stock is held by a fund, or the
events that would cause the stock price to increase may not occur as anticipated
or at all. Moreover, a stock that appears to be undervalued actually may be
appropriately priced at a low level and, therefore, would not be profitable for
the fund.
Fixed-Income
Securities Risk. Fixed-income securities are subject to interest rate, credit
quality, and liquidity risks. The market value of fixed-income securities
generally declines when interest rates rise, and increased interest rates may
adversely affect the liquidity of certain fixed-income securities. Moreover, an
issuer of fixed-income securities could default on its payment obligations due
to increased interest rates or for other reasons.
Foreign
Currency Risk. Risks of investing in securities denominated in, or that trade in,
foreign (non-U.S.) currencies include changes in foreign exchange rates and
foreign exchange restrictions.
Foreign
Securities Risk. The risks of foreign securities include loss of value as a result
of: political or economic instability; nationalization, expropriation, or
confiscatory taxation; settlement delays; and limited government regulation
(including less stringent reporting, accounting, and disclosure standards than
are required of U.S. companies).
Index
Fund Risk. Index funds use a passive investment approach and generally do not
attempt to manage market volatility, use defensive strategies, or reduce the
effect of any long-term periods of poor investment performance. Therefore, the
Fund may hold securities that present risks that an investment advisor
researching individual securities might seek to avoid. An index fund has
operating and other expenses while an index does not. As a result, over time,
index funds tend to underperform the index. The correlation between fund
performance and index performance may also be affected by the type of passive
investment approach used by a fund (sampling or replication), changes in
securities markets, changes in the composition of the index, and the timing of
purchases and sales of fund shares. Errors or delays in compiling or rebalancing
the Index may impact the performance of the Fund and increase transaction
costs.
Portfolio
Duration Risk. Portfolio duration is a measure of the expected life of a
fixed-income security and its sensitivity to changes in interest rates. The
longer a fund’s average portfolio duration, the more sensitive the fund will be
to changes in interest rates, which means funds with longer average portfolio
durations may be more volatile than those with shorter
durations.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Performance
No performance
information is shown below because the Fund has not yet had a calendar year of
performance. The Fund’s performance is benchmarked against the
S&P 1500 TR and the S&P Target Date 65+ Index. Performance
information provides an indication of the risks of investing in the
Fund. Past performance is not
necessarily an indication of how the Fund will perform in the
future. You may get updated performance information at
www.PrincipalAM.com.
Effective March 1, 2024 the Fund
changed its primary broad-based index to the S&P 1500 TR in order to meet
the revised definition of "broad-based securities market index."
The S&P Target Date 2065+ Index
is included as an additional index for the Fund as it shows how the Fund's
performance compares with returns of an index of funds with similar investment
objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2023), Portfolio Manager
• Scott
Smith (since 2023), Portfolio Manager
• Randy
L. Welch (since 2023), Portfolio Manager
Purchase
and Sale of Fund Shares
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Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, and R-5 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME
HYBRID INCOME FUND
Objective
The Fund seeks current income, and as a secondary objective, capital
appreciation.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
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J |
Inst. |
R-6 |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
|
J |
Inst. |
R-6 |
Management
Fees |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
N/A |
Other
Expenses |
0.04% |
0.22% |
0.09% |
Acquired
Fund Fees and Expenses |
0.32% |
0.32% |
0.32% |
Total
Annual Fund Operating Expenses |
0.51% |
0.54% |
0.41% |
Expense
Reimbursement (1) |
N/A
|
(0.17)% |
(0.07)% |
Total
Annual Fund Operating Expenses After Expense Reimbursement |
0.51% |
0.37% |
0.34% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.05% for Institutional Class shares. In addition, for Class R-6 shares,
the expense limit will maintain "Other Expenses" (expressed as a percent of
average net assets on an annualized basis) not to exceed 0.02%, (excluding
interest expense, expenses related to fund investments, acquired fund fees and
expenses, and tax reclaim recovery expenses and other extraordinary expenses).
It is expected that the expense limits will continue through the period ending
February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limits prior to the end
of the period. Subject to applicable expense limits, the Fund may reimburse PGI
for expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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1
year |
3
years |
5
years |
10
years |
Class
J |
$152 |
$164 |
$285 |
$640 |
Institutional
Class |
38 |
156 |
285 |
661 |
Class
R-6 |
35 |
125 |
223 |
511
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With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
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1
year |
3
years |
5
years |
10
years |
Class
J |
$52 |
$164 |
$285 |
$640
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Portfolio
Turnover
The
Fund and each underlying fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s
and the underlying funds' performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 20.7% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund invests according to an asset allocation strategy designed for investors
primarily seeking current income and secondarily capital appreciation. The
Fund’s asset allocation is designed for investors who are approximately 10 years
beyond the normal retirement age of 65. The Fund is a fund of funds that invests
in underlying funds of Principal Funds, Inc. (“PFI”), with a majority of the
Fund’s assets invested in index funds. Its underlying funds consist of domestic
and foreign equity funds, fixed-income funds, real asset funds, and other funds
that aim to offer diversification beyond traditional equity and fixed-income
securities. The diversification of the Fund is designed to moderate overall
price volatility. The Fund may add, remove, or substitute underlying funds at
any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of large market
capitalization companies, fixed-income securities, domestic and foreign
securities, securities denominated in foreign currencies, investment companies
(including index funds), securitized products, U.S. government and U.S.
government-sponsored securities, and derivatives. A derivative is a financial
arrangement, the value of which is derived from, or based on, a traditional
security, asset, or market index. The underlying funds principally use futures,
options, swaps (including, for example, credit default, interest rate, and
currency swaps), and forwards in order to gain exposure to a variety of
securities or asset classes or attempt to reduce
risk.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Credit
Default Swaps.
Credit default swaps involve special risks in addition to those associated with
swaps generally because they are difficult to value, are highly susceptible to
liquidity and credit risk, and generally pay a return to the party that has paid
the premium only in the event of an actual default by the issuer of the
underlying obligation (as opposed to a credit downgrade or other indication of
financial difficulty). The protection “buyer” in a credit default contract may
be obligated to pay the protection “seller” an up-front payment or a periodic
stream of payments over the term of the contract, provided, generally, that no
credit event on a reference obligation has occurred. If a credit event occurs,
the seller generally must pay the buyer the “par value” (i.e., full notional
value) of the swap in exchange for an equal face amount of deliverable
obligations of the reference entity described in the swap, or the seller may be
required to deliver the related net cash amount, if the swap is cash settled.
The Fund may be either the buyer or seller in the
transaction.
•Forward
Contracts, Futures, and Swaps. Forward
contracts, futures, and swaps involve specific risks, including: the imperfect
correlation between the change in market value of the instruments held by the
fund and the price of the forward contract, future, or swap; possible lack of a
liquid secondary market for a forward contract, future, or swap and the
resulting inability to close a forward contract, future, or swap when desired;
counterparty risk; and if the fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Index
Fund Risk. Index
funds use a passive investment approach and generally do not attempt to manage
market volatility, use defensive strategies, or reduce the effect of any
long-term periods of poor investment performance. Therefore, the Fund may hold
securities that present risks that an investment advisor researching individual
securities might seek to avoid. An index fund has operating and other expenses
while an index does not. As a result, over time, index funds tend to
underperform the index. The correlation between fund performance and index
performance may also be affected by the type of passive investment approach used
by a fund (sampling or replication), changes in securities markets, changes in
the composition of the index, and the timing of purchases and sales of fund
shares. Errors or delays in compiling or rebalancing the Index may impact the
performance of the Fund and increase transaction
costs.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Securitized
Products Risk. Investments
in securitized products are subject to risks similar to traditional fixed-income
securities, such as credit, interest rate, liquidity, prepayment, extension, and
default risk, as well as additional risks associated with the nature of the
assets and the servicing of those assets. Unscheduled prepayments on securitized
products may have to be reinvested at lower rates. A reduction in prepayments
may increase the effective maturities of these securities, exposing them to the
risk of decline in market value over time (extension
risk).
U.S.
Government Securities Risk. Yields
available from U.S. government securities are generally lower than yields from
many other fixed-income securities. The value of U.S. government securities may
be adversely impacted by changes in interest rates, changes in the credit rating
of the U.S. government, or a default by the U.S.
government.
U.S.
Government-Sponsored Securities Risk. Securities
issued by U.S. government-sponsored enterprises such as the Federal Home Loan
Mortgage Corporation, the Federal National Mortgage Association, and the Federal
Home Loan Banks are not issued or guaranteed by the U.S.
government.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Life
of Fund returns are measured from the date the Fund’s shares were first sold
(September 30, 2014).
For
periods prior to the inception date of Class R-6 shares (August 24, 2015) and
Class J shares (March 1, 2018), the performance shown in the table for these
newer classes is that of the Fund’s Institutional Class shares, adjusted to
reflect the respective fees and expenses of each class. These adjustments result
in performance for such periods that is no higher than the historical
performance of the Institutional Class shares, which were first sold on
September 30, 2014.
Total Returns as of
December 31
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Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
7.43 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q2
2022 |
(8.44) |
% |
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Average
Annual Total Returns
For
the periods ended December 31, 2023 |
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1
Year |
5
Years |
Life
of Fund |
Institutional Class Return Before
Taxes |
10.77% |
4.48% |
3.56% |
Institutional Class Return After Taxes
on Distributions |
9.38% |
2.98% |
2.27% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
6.56% |
3.02% |
2.31% |
Class J
Return Before Taxes |
9.62% |
4.25% |
3.33% |
Class R-6
Return Before Taxes |
10.78% |
4.51% |
3.59% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.51% |
S&P
Target Date Retirement Income Index (reflects no deduction for
fees, expenses, or taxes) |
10.35% |
4.90% |
3.93% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Bloomberg U.S. Aggregate Bond Index
in order to meet the revised definition of “broad-based securities market
index.” The S&P Target Date Retirement
Income Index is included as an additional index for the Fund as it shows how the
Fund’s performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2014), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2014), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional
and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME
HYBRID 2015 FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-6 |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-6 |
Management
Fees |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
N/A |
Other
Expenses |
0.04% |
0.14% |
0.06% |
Acquired
Fund Fees and Expenses |
0.32% |
0.32% |
0.32% |
Total
Annual Fund Operating Expenses |
0.51% |
0.46% |
0.38% |
Expense
Reimbursement (1) |
N/A
|
(0.09)% |
(0.04)% |
Total
Annual Fund Operating Expenses After Expense Reimbursement |
0.51% |
0.37% |
0.34% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.05% for Institutional Class shares. In addition, for Class R-6 shares,
the expense limit will maintain "Other Expenses" (expressed as a percent of
average net assets on an annualized basis) not to exceed 0.02%, (excluding
interest expense, expenses related to fund investments, acquired fund fees and
expenses, and tax reclaim recovery expenses and other extraordinary expenses).
It is expected that the expense limits will continue through the period ending
February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limits prior to the end
of the period. Subject to applicable expense limits, the Fund may reimburse PGI
for expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$152 |
$164 |
$285 |
$640 |
Institutional
Class |
38 |
139 |
249 |
570 |
Class
R-6 |
35 |
118 |
209 |
476
|
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$52 |
$164 |
$285 |
$640
|
Portfolio
Turnover
The
Fund and each underlying fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s
and the underlying funds' performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 15.8% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds that invests
in underlying funds of Principal Funds, Inc. (“PFI”), with a majority of the
Fund’s assets invested in index funds. Its underlying funds consist of domestic
and foreign equity funds, fixed-income funds, real asset funds, and other funds
that aim to offer diversification beyond traditional equity and fixed-income
securities. The asset class diversification of the Fund is designed to moderate
overall price volatility. The Fund may add, remove, or substitute underlying
funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
securities, securities denominated in foreign currencies, investment companies
(including index funds), securitized products, U.S. government and U.S.
government-sponsored securities, and derivatives. A derivative is a financial
arrangement, the value of which is derived from, or based on, a traditional
security, asset, or market index. The underlying funds principally use futures,
options, swaps (including, for example, credit default, interest rate, and
currency swaps), and forwards in order to gain exposure to a variety of
securities or asset classes or attempt to reduce risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Hybrid Income Fund if the Board of Directors determines that
the combination is in the best interests of Fund shareholders. It is expected
that at the target date in the Fund’s name, the shareholder will begin gradually
withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Credit
Default Swaps.
Credit default swaps involve special risks in addition to those associated with
swaps generally because they are difficult to value, are highly susceptible to
liquidity and credit risk, and generally pay a return to the party that has paid
the premium only in the event of an actual default by the issuer of the
underlying obligation (as opposed to a credit downgrade or other indication of
financial difficulty). The protection “buyer” in a credit default contract may
be obligated to pay the protection “seller” an up-front payment or a periodic
stream of payments over the term of the contract, provided, generally, that no
credit event on a reference obligation has occurred. If a credit event occurs,
the seller generally must pay the buyer the “par value” (i.e., full notional
value) of the swap in exchange for an equal face amount of deliverable
obligations of the reference entity described in the swap, or the seller may be
required to deliver the related net cash amount, if the swap is cash settled.
The Fund may be either the buyer or seller in the
transaction.
•Forward
Contracts, Futures, and Swaps. Forward
contracts, futures, and swaps involve specific risks, including: the imperfect
correlation between the change in market value of the instruments held by the
fund and the price of the forward contract, future, or swap; possible lack of a
liquid secondary market for a forward contract, future, or swap and the
resulting inability to close a forward contract, future, or swap when desired;
counterparty risk; and if the fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Index
Fund Risk. Index
funds use a passive investment approach and generally do not attempt to manage
market volatility, use defensive strategies, or reduce the effect of any
long-term periods of poor investment performance. Therefore, the Fund may hold
securities that present risks that an investment advisor researching individual
securities might seek to avoid. An index fund has operating and other expenses
while an index does not. As a result, over time, index funds tend to
underperform the index. The correlation between fund performance and index
performance may also be affected by the type of passive investment approach used
by a fund (sampling or replication), changes in securities markets, changes in
the composition of the index, and the timing of purchases and sales of fund
shares. Errors or delays in compiling or rebalancing the Index may impact the
performance of the Fund and increase transaction
costs.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Securitized
Products Risk. Investments
in securitized products are subject to risks similar to traditional fixed-income
securities, such as credit, interest rate, liquidity, prepayment, extension, and
default risk, as well as additional risks associated with the nature of the
assets and the servicing of those assets. Unscheduled prepayments on securitized
products may have to be reinvested at lower rates. A reduction in prepayments
may increase the effective maturities of these securities, exposing them to the
risk of decline in market value over time (extension
risk).
U.S.
Government Securities Risk. Yields
available from U.S. government securities are generally lower than yields from
many other fixed-income securities. The value of U.S. government securities may
be adversely impacted by changes in interest rates, changes in the credit rating
of the U.S. government, or a default by the U.S.
government.
U.S.
Government-Sponsored Securities Risk. Securities
issued by U.S. government-sponsored enterprises such as the Federal Home Loan
Mortgage Corporation, the Federal National Mortgage Association, and the Federal
Home Loan Banks are not issued or guaranteed by the U.S.
government.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Life
of Fund returns are measured from the date the Fund’s shares were first sold
(September 30, 2014).
For
periods prior to the inception date of Class R-6 shares (August 24, 2015) and
Class J shares (March 1, 2018), the performance shown in the table for these
newer classes is that of the Fund’s Institutional Class shares, adjusted to
reflect the respective fees and expenses of each class. These adjustments result
in performance for such periods that is no higher than the historical
performance of the Institutional Class shares, which were first sold on
September 30, 2014.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
9.79 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q2
2022 |
(8.93) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
Life
of Fund |
Institutional Class Return Before
Taxes |
11.09% |
5.97% |
4.80% |
Institutional Class Return After Taxes
on Distributions |
9.76% |
4.49% |
3.53% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
6.75% |
4.24% |
3.36% |
Class J
Return Before Taxes |
9.95% |
5.77% |
4.57% |
Class R-6
Return Before Taxes |
11.11% |
5.99% |
4.83% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for fees, expenses, or
taxes) |
5.53% |
1.10% |
1.51% |
S&P
Target Date 2015 Index (reflects no deduction for
fees, expenses, or taxes) |
11.38% |
6.10% |
4.93% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Bloomberg U.S. Aggregate Bond Index
in order to meet the revised definition of “broad-based securities market
index.” The S&P Target Date 2015 Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2014), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2014), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional
and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME
HYBRID 2020 FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-6 |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-6 |
Management
Fees |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
N/A |
Other
Expenses |
0.03% |
0.10% |
0.02% |
Acquired
Fund Fees and Expenses |
0.32% |
0.32% |
0.32% |
Total
Annual Fund Operating Expenses |
0.50% |
0.42% |
0.34% |
Expense
Reimbursement
(1) |
N/A |
(0.05)% |
0.00% |
Total
Annual Fund Operating Expenses After Expense Reimbursement |
0.50% |
0.37% |
0.34% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.05% for Institutional Class shares. In addition, for Class R-6 shares,
the expense limit will maintain "Other Expenses" (expressed as a percent of
average net assets on an annualized basis) not to exceed 0.02%, (excluding
interest expense, expenses related to fund investments, acquired fund fees and
expenses, and tax reclaim recovery expenses and other extraordinary expenses).
It is expected that the expense limits will continue through the period ending
February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limits prior to the end
of the period. Subject to applicable expense limits, the Fund may reimburse PGI
for expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$151 |
$160 |
$280 |
$628 |
Institutional
Class |
38 |
130 |
230 |
525 |
Class
R-6 |
35 |
109 |
191 |
431
|
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$51 |
$160 |
$280 |
$628
|
Portfolio
Turnover
The
Fund and each underlying fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s
and the underlying funds' performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 18.1% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds that invests
in underlying funds of Principal Funds, Inc. (“PFI”), with a majority of the
Fund’s assets invested in index funds. Its underlying funds consist of domestic
and foreign equity funds, fixed-income funds, real asset funds, and other funds
that aim to offer diversification beyond traditional equity and fixed-income
securities. The asset class diversification of the Fund is designed to moderate
overall price volatility. The Fund may add, remove, or substitute underlying
funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
securities, securities denominated in foreign currencies, investment companies
(including index funds), securitized products, U.S. government and U.S.
government-sponsored securities, and derivatives. A derivative is a financial
arrangement, the value of which is derived from, or based on, a traditional
security, asset, or market index. The underlying funds principally use futures,
options, swaps (including, for example, credit default, interest rate, and
currency swaps), and forwards in order to gain exposure to a variety of
securities or asset classes or attempt to reduce risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Hybrid Income Fund if the Board of Directors determines that
the combination is in the best interests of Fund shareholders. It is expected
that at the target date in the Fund’s name, the shareholder will begin gradually
withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Credit
Default Swaps.
Credit default swaps involve special risks in addition to those associated with
swaps generally because they are difficult to value, are highly susceptible to
liquidity and credit risk, and generally pay a return to the party that has paid
the premium only in the event of an actual default by the issuer of the
underlying obligation (as opposed to a credit downgrade or other indication of
financial difficulty). The protection “buyer” in a credit default contract may
be obligated to pay the protection “seller” an up-front payment or a periodic
stream of payments over the term of the contract, provided, generally, that no
credit event on a reference obligation has occurred. If a credit event occurs,
the seller generally must pay the buyer the “par value” (i.e., full notional
value) of the swap in exchange for an equal face amount of deliverable
obligations of the reference entity described in the swap, or the seller may be
required to deliver the related net cash amount, if the swap is cash settled.
The Fund may be either the buyer or seller in the
transaction.
•Forward
Contracts, Futures, and Swaps. Forward
contracts, futures, and swaps involve specific risks, including: the imperfect
correlation between the change in market value of the instruments held by the
fund and the price of the forward contract, future, or swap; possible lack of a
liquid secondary market for a forward contract, future, or swap and the
resulting inability to close a forward contract, future, or swap when desired;
counterparty risk; and if the fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Index
Fund Risk. Index
funds use a passive investment approach and generally do not attempt to manage
market volatility, use defensive strategies, or reduce the effect of any
long-term periods of poor investment performance. Therefore, the Fund may hold
securities that present risks that an investment advisor researching individual
securities might seek to avoid. An index fund has operating and other expenses
while an index does not. As a result, over time, index funds tend to
underperform the index. The correlation between fund performance and index
performance may also be affected by the type of passive investment approach used
by a fund (sampling or replication), changes in securities markets, changes in
the composition of the index, and the timing of purchases and sales of fund
shares. Errors or delays in compiling or rebalancing the Index may impact the
performance of the Fund and increase transaction
costs.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Securitized
Products Risk. Investments
in securitized products are subject to risks similar to traditional fixed-income
securities, such as credit, interest rate, liquidity, prepayment, extension, and
default risk, as well as additional risks associated with the nature of the
assets and the servicing of those assets. Unscheduled prepayments on securitized
products may have to be reinvested at lower rates. A reduction in prepayments
may increase the effective maturities of these securities, exposing them to the
risk of decline in market value over time (extension
risk).
U.S.
Government Securities Risk. Yields
available from U.S. government securities are generally lower than yields from
many other fixed-income securities. The value of U.S. government securities may
be adversely impacted by changes in interest rates, changes in the credit rating
of the U.S. government, or a default by the U.S.
government.
U.S.
Government-Sponsored Securities Risk. Securities
issued by U.S. government-sponsored enterprises such as the Federal Home Loan
Mortgage Corporation, the Federal National Mortgage Association, and the Federal
Home Loan Banks are not issued or guaranteed by the U.S.
government.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Life
of Fund returns are measured from the date the Fund’s shares were first sold
(September 30, 2014).
For
periods prior to the inception date of Class R-6 shares (August 24, 2015) and
Class J shares (March 1, 2018), the performance shown in the table for these
newer classes is that of the Fund’s Institutional Class shares, adjusted to
reflect the respective fees and expenses of each class. These adjustments result
in performance for such periods that is no higher than the historical
performance of the Institutional Class shares, which were first sold on
September 30, 2014.
Total Returns as of
December 31
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|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
11.16 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(10.35) |
% |
|
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|
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| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
Life
of Fund |
Institutional Class Return Before
Taxes |
12.08% |
6.85% |
5.47% |
Institutional Class Return After Taxes
on Distributions |
10.76% |
5.31% |
4.14% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
7.37% |
4.96% |
3.92% |
Class J
Return Before Taxes |
10.95% |
6.72% |
5.27% |
Class R-6
Return Before Taxes |
12.21% |
6.91% |
5.51% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.51% |
S&P
Target Date 2020 Index (reflects no deduction for
fees, expenses, or taxes) |
12.32% |
6.47% |
5.28% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Bloomberg U.S. Aggregate Bond Index
in order to meet the revised definition of “broad-based securities market
index.” The S&P Target Date 2020 Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2014), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2014), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
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|
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| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional
and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME
HYBRID 2025 FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
|
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|
|
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|
| |
|
Share
Class |
|
J |
Inst. |
R-6 |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-6 |
Management
Fees |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
N/A |
Other
Expenses |
0.02% |
0.08% |
0.02% |
Acquired
Fund Fees and Expenses |
0.32% |
0.32% |
0.32% |
Total
Annual Fund Operating Expenses |
0.49% |
0.40% |
0.34% |
Expense
Reimbursement (1) |
N/A |
(0.03)% |
0.00% |
Total
Annual Fund Operating Expenses After Expense Reimbursement |
0.49% |
0.37% |
0.34% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.05% for Institutional Class shares. In addition, for Class R-6 shares,
the expense limit will maintain "Other Expenses" (expressed as a percent of
average net assets on an annualized basis) not to exceed 0.02%, (excluding
interest expense, expenses related to fund investments, acquired fund fees and
expenses, and tax reclaim recovery expenses and other extraordinary expenses).
It is expected that the expense limits will continue through the period ending
February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limits prior to the end
of the period. Subject to applicable expense limits, the Fund may reimburse PGI
for expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| 1
year |
3
years |
5
years |
10
years |
Class
J |
$150 |
$157 |
$274 |
$616 |
Institutional
Class |
38 |
125 |
221 |
502 |
Class
R-6 |
35 |
109 |
191 |
431
|
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$50 |
$157 |
$274 |
$616
|
Portfolio
Turnover
The
Fund and each underlying fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s
and the underlying funds' performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 12.3% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds that invests
in underlying funds of Principal Funds, Inc. (“PFI”), with a majority of the
Fund’s assets invested in index funds. Its underlying funds consist of domestic
and foreign equity funds, fixed-income funds, real asset funds, and other funds
that aim to offer diversification beyond traditional equity and fixed-income
securities. The asset class diversification of the Fund is designed to moderate
overall price volatility. The Fund may add, remove, or substitute underlying
funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
securities, securities denominated in foreign currencies, investment companies
(including index funds), securitized products, U.S. government and U.S.
government-sponsored securities, and derivatives. A derivative is a financial
arrangement, the value of which is derived from, or based on, a traditional
security, asset, or market index. The underlying funds principally use futures,
options, swaps (including, for example, credit default, interest rate, and
currency swaps), and forwards in order to gain exposure to a variety of
securities or asset classes or attempt to reduce risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Hybrid Income Fund if the Board of Directors determines that
the combination is in the best interests of Fund shareholders. It is expected
that at the target date in the Fund’s name, the shareholder will begin gradually
withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Credit
Default Swaps.
Credit default swaps involve special risks in addition to those associated with
swaps generally because they are difficult to value, are highly susceptible to
liquidity and credit risk, and generally pay a return to the party that has paid
the premium only in the event of an actual default by the issuer of the
underlying obligation (as opposed to a credit downgrade or other indication of
financial difficulty). The protection “buyer” in a credit default contract may
be obligated to pay the protection “seller” an up-front payment or a periodic
stream of payments over the term of the contract, provided, generally, that no
credit event on a reference obligation has occurred. If a credit event occurs,
the seller generally must pay the buyer the “par value” (i.e., full notional
value) of the swap in exchange for an equal face amount of deliverable
obligations of the reference entity described in the swap, or the seller may be
required to deliver the related net cash amount, if the swap is cash settled.
The Fund may be either the buyer or seller in the
transaction.
•Forward
Contracts, Futures, and Swaps. Forward
contracts, futures, and swaps involve specific risks, including: the imperfect
correlation between the change in market value of the instruments held by the
fund and the price of the forward contract, future, or swap; possible lack of a
liquid secondary market for a forward contract, future, or swap and the
resulting inability to close a forward contract, future, or swap when desired;
counterparty risk; and if the fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Index
Fund Risk. Index
funds use a passive investment approach and generally do not attempt to manage
market volatility, use defensive strategies, or reduce the effect of any
long-term periods of poor investment performance. Therefore, the Fund may hold
securities that present risks that an investment advisor researching individual
securities might seek to avoid. An index fund has operating and other expenses
while an index does not. As a result, over time, index funds tend to
underperform the index. The correlation between fund performance and index
performance may also be affected by the type of passive investment approach used
by a fund (sampling or replication), changes in securities markets, changes in
the composition of the index, and the timing of purchases and sales of fund
shares. Errors or delays in compiling or rebalancing the Index may impact the
performance of the Fund and increase transaction
costs.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Securitized
Products Risk. Investments
in securitized products are subject to risks similar to traditional fixed-income
securities, such as credit, interest rate, liquidity, prepayment, extension, and
default risk, as well as additional risks associated with the nature of the
assets and the servicing of those assets. Unscheduled prepayments on securitized
products may have to be reinvested at lower rates. A reduction in prepayments
may increase the effective maturities of these securities, exposing them to the
risk of decline in market value over time (extension
risk).
U.S.
Government Securities Risk. Yields
available from U.S. government securities are generally lower than yields from
many other fixed-income securities. The value of U.S. government securities may
be adversely impacted by changes in interest rates, changes in the credit rating
of the U.S. government, or a default by the U.S.
government.
U.S.
Government-Sponsored Securities Risk. Securities
issued by U.S. government-sponsored enterprises such as the Federal Home Loan
Mortgage Corporation, the Federal National Mortgage Association, and the Federal
Home Loan Banks are not issued or guaranteed by the U.S.
government.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Life
of Fund returns are measured from the date the Fund’s shares were first sold
(September 30, 2014).
For
periods prior to the inception date of Class R-6 shares (August 24, 2015) and
Class J shares (March 1, 2018), the performance shown in the table for these
newer classes is that of the Fund’s Institutional Class shares, adjusted to
reflect the respective fees and expenses of each class. These adjustments result
in performance for such periods that is no higher than the historical
performance of the Institutional Class shares, which were first sold on
September 30, 2014.
Total Returns as of
December 31
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Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
12.56 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(12.50) |
% |
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Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
Life
of Fund |
Institutional Class Return Before
Taxes |
13.24% |
7.82% |
6.12% |
Institutional Class Return After Taxes
on Distributions |
11.95% |
6.37% |
4.86% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
8.12% |
5.78% |
4.48% |
Class J
Return Before Taxes |
12.14% |
7.65% |
5.92% |
Class R-6
Return Before Taxes |
13.28% |
7.83% |
6.14% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.51% |
S&P
Target Date 2025 Index (reflects no deduction for
fees, expenses, or taxes) |
12.99% |
7.42% |
5.91% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Bloomberg U.S. Aggregate Bond Index
in order to meet the revised definition of “broad-based securities market
index.” The S&P Target Date 2025 Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2014), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2014), Portfolio Manager
Purchase
and Sale of Fund Shares
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Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional
and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME
HYBRID 2030 FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
|
J |
Inst. |
R-6 |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
|
J |
Inst. |
R-6 |
Management
Fees |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
N/A |
Other
Expenses |
0.03% |
0.07% |
0.02% |
Acquired
Fund Fees and Expenses |
0.31% |
0.31% |
0.31% |
Total
Annual Fund Operating Expenses |
0.49% |
0.38% |
0.33% |
Expense
Reimbursement (1) |
N/A |
(0.02)% |
0.00% |
Total
Annual Fund Operating Expenses After Expense Reimbursement |
0.49% |
0.36% |
0.33% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.05% for Institutional Class shares. In addition, for Class R-6 shares,
the expense limit will maintain "Other Expenses" (expressed as a percent of
average net assets on an annualized basis) not to exceed 0.02%, (excluding
interest expense, expenses related to fund investments, acquired fund fees and
expenses, and tax reclaim recovery expenses and other extraordinary expenses).
It is expected that the expense limits will continue through the period ending
February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limits prior to the end
of the period. Subject to applicable expense limits, the Fund may reimburse PGI
for expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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1
year |
3
years |
5
years |
10
years |
Class
J |
$150 |
$157 |
$274 |
$616 |
Institutional
Class |
37 |
120 |
211 |
478 |
Class
R-6 |
34 |
106 |
185 |
418
|
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
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1
year |
3
years |
5
years |
10
years |
Class
J |
$50 |
$157 |
$274 |
$616
|
Portfolio
Turnover
The
Fund and each underlying fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s
and the underlying funds' performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 11.5% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds that invests
in underlying funds of Principal Funds, Inc. (“PFI”), with a majority of the
Fund’s assets invested in index funds. Its underlying funds consist of domestic
and foreign equity funds, fixed-income funds, real asset funds, and other funds
that aim to offer diversification beyond traditional equity and fixed-income
securities. The asset class diversification of the Fund is designed to moderate
overall price volatility. The Fund may add, remove, or substitute underlying
funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
securities, securities denominated in foreign currencies, investment companies
(including index funds), U.S. government and U.S. government-sponsored
securities, and derivatives. A derivative is a financial arrangement, the value
of which is derived from, or based on, a traditional security, asset, or market
index. The underlying funds principally use futures, options, swaps (including,
for example, credit default, interest rate, and currency swaps), and forwards in
order to gain exposure to a variety of securities or asset classes or attempt to
reduce risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Hybrid Income Fund if the Board of Directors determines that
the combination is in the best interests of Fund shareholders. It is expected
that at the target date in the Fund’s name, the shareholder will begin gradually
withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Credit
Default Swaps. Credit default swaps involve special risks in addition to those
associated with swaps generally because they are difficult to value, are highly
susceptible to liquidity and credit risk, and generally pay a return to the
party that has paid the premium only in the event of an actual default by the
issuer of the underlying obligation (as opposed to a credit downgrade or other
indication of financial difficulty). The protection “buyer” in a credit default
contract may be obligated to pay the protection “seller” an up-front payment or
a periodic stream of payments over the term of the contract, provided,
generally, that no credit event on a reference obligation has occurred. If a
credit event occurs, the seller generally must pay the buyer the “par value”
(i.e., full notional value) of the swap in exchange for an equal face amount of
deliverable obligations of the reference entity described in the swap, or the
seller may be required to deliver the related net cash amount, if the swap is
cash settled. The Fund may be either the buyer or seller in the
transaction.
•Forward
Contracts, Futures, and Swaps. Forward
contracts, futures, and swaps involve specific risks, including: the imperfect
correlation between the change in market value of the instruments held by the
fund and the price of the forward contract, future, or swap; possible lack of a
liquid secondary market for a forward contract, future, or swap and the
resulting inability to close a forward contract, future, or swap when desired;
counterparty risk; and if the fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Index
Fund Risk. Index
funds use a passive investment approach and generally do not attempt to manage
market volatility, use defensive strategies, or reduce the effect of any
long-term periods of poor investment performance. Therefore, the Fund may hold
securities that present risks that an investment advisor researching individual
securities might seek to avoid. An index fund has operating and other expenses
while an index does not. As a result, over time, index funds tend to
underperform the index. The correlation between fund performance and index
performance may also be affected by the type of passive investment approach used
by a fund (sampling or replication), changes in securities markets, changes in
the composition of the index, and the timing of purchases and sales of fund
shares. Errors or delays in compiling or rebalancing the Index may impact the
performance of the Fund and increase transaction
costs.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Securitized
Products Risk. Investments
in securitized products are subject to risks similar to traditional fixed-income
securities, such as credit, interest rate, liquidity, prepayment, extension, and
default risk, as well as additional risks associated with the nature of the
assets and the servicing of those assets. Unscheduled prepayments on securitized
products may have to be reinvested at lower rates. A reduction in prepayments
may increase the effective maturities of these securities, exposing them to the
risk of decline in market value over time (extension
risk).
U.S.
Government Securities Risk. Yields
available from U.S. government securities are generally lower than yields from
many other fixed-income securities. The value of U.S. government securities may
be adversely impacted by changes in interest rates, changes in the credit rating
of the U.S. government, or a default by the U.S.
government.
U.S.
Government-Sponsored Securities Risk. Securities
issued by U.S. government-sponsored enterprises such as the Federal Home Loan
Mortgage Corporation, the Federal National Mortgage Association, and the Federal
Home Loan Banks are not issued or guaranteed by the U.S.
government.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Life
of Fund returns are measured from the date the Fund’s shares were first sold
(September 30, 2014).
For
periods prior to the inception date of Class R-6 shares (August 24, 2015) and
Class J shares (March 1, 2018), the performance shown in the table for these
newer classes is that of the Fund’s Institutional Class shares, adjusted to
reflect the respective fees and expenses of each class. These adjustments result
in performance for such periods that is no higher than the historical
performance of the Institutional Class shares, which were first sold on
September 30, 2014.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
14.20 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(14.39) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
Life
of Fund |
Institutional Class Return Before
Taxes |
14.93% |
8.62% |
6.68% |
Institutional Class Return After Taxes
on Distributions |
13.69% |
7.12% |
5.39% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
9.15% |
6.46% |
4.97% |
Class J
Return Before Taxes |
13.86% |
8.44% |
6.46% |
Class R-6
Return Before Taxes |
14.98% |
8.66% |
6.70% |
S&P
1500 TR (reflects no deduction for
fees, expenses, or taxes) |
25.47% |
15.39% |
11.85% |
S&P
Target Date 2030 Index (reflects no deduction for
fees, expenses, or taxes) |
14.80% |
8.42% |
6.54% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the S&P 1500 TR in order to meet
the revised definition of “broad-based securities market index.”
The S&P Target Date 2030 Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2014), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2014), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional
and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME
HYBRID 2035 FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-6 |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-6 |
Management
Fees |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
N/A |
Other
Expenses |
0.04% |
0.08% |
0.02% |
Acquired
Fund Fees and Expenses |
0.33% |
0.33% |
0.33% |
Total
Annual Fund Operating Expenses |
0.52% |
0.41% |
0.35% |
Expense
Reimbursement
(1) |
N/A |
(0.03)% |
0.00% |
Total
Annual Fund Operating Expenses After Expense Reimbursement |
0.52% |
0.38% |
0.35% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.05% for Institutional Class shares. In addition, for Class R-6 shares,
the expense limit will maintain "Other Expenses" (expressed as a percent of
average net assets on an annualized basis) not to exceed 0.02%, (excluding
interest expense, expenses related to fund investments, acquired fund fees and
expenses, and tax reclaim recovery expenses and other extraordinary expenses).
It is expected that the expense limits will continue through the period ending
February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limits prior to the end
of the period. Subject to applicable expense limits, the Fund may reimburse PGI
for expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$153 |
$167 |
$291 |
$653 |
Institutional
Class |
39 |
129 |
227 |
515 |
Class
R-6 |
36 |
113 |
197 |
443
|
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$53 |
$167 |
$291 |
$653
|
Portfolio
Turnover
The
Fund and each underlying fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s
and the underlying funds' performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 13.1% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds that invests
in underlying funds of Principal Funds, Inc. (“PFI”), with a majority of the
Fund’s assets invested in index funds. Its underlying funds consist of domestic
and foreign equity funds, fixed-income funds, real asset funds, and other funds
that aim to offer diversification beyond traditional equity and fixed-income
securities. The asset class diversification of the Fund is designed to moderate
overall price volatility. The Fund may add, remove, or substitute underlying
funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
securities, securities denominated in foreign currencies, investment companies
(including index funds), U.S. government and U.S. government-sponsored
securities, and derivatives. A derivative is a financial arrangement, the value
of which is derived from, or based on, a traditional security, asset, or market
index. The underlying funds principally use equity index futures and options in
order to gain exposure to a variety of securities or asset classes or attempt to
reduce risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Hybrid Income Fund if the Board of Directors determines that
the combination is in the best interests of Fund shareholders. It is expected
that at the target date in the Fund’s name, the shareholder will begin gradually
withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Futures.
Futures
contracts involve specific risks, including: the imperfect correlation between
the change in market value of the instruments held by the Fund and the price of
the futures contract; possible lack of a liquid secondary market for a futures
contract and the resulting inability to close a futures contract when desired;
counterparty risk; and if the Fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Index
Fund Risk. Index
funds use a passive investment approach and generally do not attempt to manage
market volatility, use defensive strategies, or reduce the effect of any
long-term periods of poor investment performance. Therefore, the Fund may hold
securities that present risks that an investment advisor researching individual
securities might seek to avoid. An index fund has operating and other expenses
while an index does not. As a result, over time, index funds tend to
underperform the index. The correlation between fund performance and index
performance may also be affected by the type of passive investment approach used
by a fund (sampling or replication), changes in securities markets, changes in
the composition of the index, and the timing of purchases and sales of fund
shares. Errors or delays in compiling or rebalancing the Index may impact the
performance of the Fund and increase transaction
costs.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Securitized
Products Risk. Investments
in securitized products are subject to risks similar to traditional fixed-income
securities, such as credit, interest rate, liquidity, prepayment, extension, and
default risk, as well as additional risks associated with the nature of the
assets and the servicing of those assets. Unscheduled prepayments on securitized
products may have to be reinvested at lower rates. A reduction in prepayments
may increase the effective maturities of these securities, exposing them to the
risk of decline in market value over time (extension
risk).
U.S.
Government Securities Risk. Yields
available from U.S. government securities are generally lower than yields from
many other fixed-income securities. The value of U.S. government securities may
be adversely impacted by changes in interest rates, changes in the credit rating
of the U.S. government, or a default by the U.S.
government.
U.S.
Government-Sponsored Securities Risk. Securities
issued by U.S. government-sponsored enterprises such as the Federal Home Loan
Mortgage Corporation, the Federal National Mortgage Association, and the Federal
Home Loan Banks are not issued or guaranteed by the U.S.
government.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Life
of Fund returns are measured from the date the Fund’s shares were first sold
(September 30, 2014).
For
periods prior to the inception date of Class R-6 shares (August 24, 2015) and
Class J shares (March 1, 2018), the performance shown in the table for these
newer classes is that of the Fund’s Institutional Class shares, adjusted to
reflect the respective fees and expenses of each class. These adjustments result
in performance for such periods that is no higher than the historical
performance of the Institutional Class shares, which were first sold on
September 30, 2014.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
15.37 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(16.18) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
Life
of Fund |
Institutional Class Return Before
Taxes |
16.47% |
9.46% |
7.23% |
Institutional Class Return After Taxes
on Distributions |
15.28% |
8.03% |
6.00% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
10.12% |
7.19% |
5.47% |
Class J
Return Before Taxes |
15.39% |
9.27% |
7.01% |
Class R-6
Return Before Taxes |
16.47% |
9.50% |
7.27% |
S&P
1500 TR (reflects no deduction for
fees, expenses, or taxes) |
25.47% |
15.39% |
11.85% |
S&P
Target Date 2035 Index (reflects no deduction for
fees, expenses, or taxes) |
16.63% |
9.44% |
7.18% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the S&P 1500 TR in order to meet
the revised definition of “broad-based securities market index.”
The S&P Target Date 2035 Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment
objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2014), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2014), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional
and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME
HYBRID 2040 FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-6 |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-6 |
Management
Fees |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
N/A |
Other
Expenses |
0.05% |
0.08% |
0.02% |
Acquired
Fund Fees and Expenses |
0.35% |
0.35% |
0.35% |
Total
Annual Fund Operating Expenses |
0.55% |
0.43% |
0.37% |
Expense
Reimbursement (1) |
N/A
|
(0.03)% |
0.00% |
Total
Annual Fund Operating Expenses After Expense Reimbursement |
0.55% |
0.40% |
0.37% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.05% for Institutional Class shares. In addition, for Class R-6 shares,
the expense limit will maintain "Other Expenses" (expressed as a percent of
average net assets on an annualized basis) not to exceed 0.02%, (excluding
interest expense, expenses related to fund investments, acquired fund fees and
expenses, and tax reclaim recovery expenses and other extraordinary expenses).
It is expected that the expense limits will continue through the period ending
February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limits prior to the end
of the period. Subject to applicable expense limits, the Fund may reimburse PGI
for expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| 1
year |
3
years |
5
years |
10
years |
Class
J |
$156 |
$176 |
$307 |
$689 |
Institutional
Class |
41 |
135 |
238 |
539 |
Class
R-6 |
38 |
119 |
208 |
468
|
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$56 |
$176 |
$307 |
$689
|
Portfolio
Turnover
The
Fund and each underlying fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s
and the underlying funds' performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 10.8% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds that invests
in underlying funds of Principal Funds, Inc. (“PFI”), with a majority of the
Fund’s assets invested in index funds. Its underlying funds consist of domestic
and foreign equity funds, fixed-income funds, real asset funds, and other funds
that aim to offer diversification beyond traditional equity and fixed-income
securities. The asset class diversification of the Fund is designed to moderate
overall price volatility. The Fund may add, remove, or substitute underlying
funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
(including those in emerging markets) securities, securities denominated in
foreign currencies, investment companies (including index funds), U.S.
government and U.S. government-sponsored securities, and derivatives. A
derivative is a financial arrangement, the value of which is derived from, or
based on, a traditional security, asset, or market index. The underlying funds
principally use equity index futures and options in order to gain exposure to a
variety of securities or asset classes or attempt to reduce risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Hybrid Income Fund if the Board of Directors determines that
the combination is in the best interests of Fund shareholders. It is expected
that at the target date in the Fund’s name, the shareholder will begin gradually
withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Futures.
Futures
contracts involve specific risks, including: the imperfect correlation between
the change in market value of the instruments held by the Fund and the price of
the futures contract; possible lack of a liquid secondary market for a futures
contract and the resulting inability to close a futures contract when desired;
counterparty risk; and if the Fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Emerging
Markets Risk. Investments
in emerging markets may have more risk than those in developed markets because
the emerging markets are less developed and more illiquid. Emerging markets can
also be subject to increased social, economic, regulatory, and political
uncertainties and can be extremely volatile. The U.S. Securities and Exchange
Commission, the U.S. Department of Justice, and other U.S. authorities may be
limited in their ability to pursue bad actors in emerging markets, including
with respect to fraud.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Index
Fund Risk. Index
funds use a passive investment approach and generally do not attempt to manage
market volatility, use defensive strategies, or reduce the effect of any
long-term periods of poor investment performance. Therefore, the Fund may hold
securities that present risks that an investment advisor researching individual
securities might seek to avoid. An index fund has operating and other expenses
while an index does not. As a result, over time, index funds tend to
underperform the index. The correlation between fund performance and index
performance may also be affected by the type of passive investment approach used
by a fund (sampling or replication), changes in securities markets, changes in
the composition of the index, and the timing of purchases and sales of fund
shares. Errors or delays in compiling or rebalancing the Index may impact the
performance of the Fund and increase transaction
costs.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Securitized
Products Risk. Investments
in securitized products are subject to risks similar to traditional fixed-income
securities, such as credit, interest rate, liquidity, prepayment, extension, and
default risk, as well as additional risks associated with the nature of the
assets and the servicing of those assets. Unscheduled prepayments on securitized
products may have to be reinvested at lower rates. A reduction in prepayments
may increase the effective maturities of these securities, exposing them to the
risk of decline in market value over time (extension
risk).
U.S.
Government Securities Risk. Yields
available from U.S. government securities are generally lower than yields from
many other fixed-income securities. The value of U.S. government securities may
be adversely impacted by changes in interest rates, changes in the credit rating
of the U.S. government, or a default by the U.S.
government.
U.S.
Government-Sponsored Securities Risk. Securities
issued by U.S. government-sponsored enterprises such as the Federal Home Loan
Mortgage Corporation, the Federal National Mortgage Association, and the Federal
Home Loan Banks are not issued or guaranteed by the U.S.
government.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Life
of Fund returns are measured from the date the Fund’s shares were first sold
(September 30, 2014).
For
periods prior to the inception date of Class R-6 shares (August 24, 2015) and
Class J shares (March 1, 2018), the performance shown in the table for these
newer classes is that of the Fund’s Institutional Class shares, adjusted to
reflect the respective fees and expenses of each class. These adjustments result
in performance for such periods that is no higher than the historical
performance of the Institutional Class shares, which were first sold on
September 30, 2014.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
16.41 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(17.67) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
Life
of Fund |
Institutional Class Return Before
Taxes |
18.18% |
10.19% |
7.70% |
Institutional Class Return After Taxes
on Distributions |
17.13% |
8.77% |
6.47% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
11.19% |
7.81% |
5.88% |
Class J
Return Before Taxes |
17.04% |
9.97% |
7.46% |
Class R-6
Return Before Taxes |
18.28% |
10.22% |
7.73% |
S&P
1500 TR (reflects no deduction for
fees, expenses, or taxes) |
25.47% |
15.39% |
11.85% |
S&P
Target Date 2040 Index (reflects no deduction for
fees, expenses, or taxes) |
18.16% |
10.22% |
7.67% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the S&P 1500 TR in order to meet
the revised definition of “broad-based securities market index.”
The S&P Target Date 2040 Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2014), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2014), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional
and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME
HYBRID 2045 FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-6 |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-6 |
Management
Fees |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
N/A |
Other
Expenses |
0.08% |
0.09% |
0.03% |
Acquired
Fund Fees and Expenses |
0.36% |
0.36% |
0.36% |
Total
Annual Fund Operating Expenses |
0.59% |
0.45% |
0.39% |
Expense
Reimbursement (1) |
N/A
|
(0.04)% |
(0.01)% |
Total
Annual Fund Operating Expenses After Expense Reimbursement |
0.59% |
0.41% |
0.38% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.05% for Institutional Class shares. In addition, for Class R-6 shares,
the expense limit will maintain "Other Expenses" (expressed as a percent of
average net assets on an annualized basis) not to exceed 0.02%, (excluding
interest expense, expenses related to fund investments, acquired fund fees and
expenses, and tax reclaim recovery expenses and other extraordinary expenses).
It is expected that the expense limits will continue through the period ending
February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limits prior to the end
of the period. Subject to applicable expense limits, the Fund may reimburse PGI
for expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$160 |
$189 |
$329 |
$738 |
Institutional
Class |
42 |
140 |
248 |
563 |
Class
R-6 |
39 |
124 |
218 |
492
|
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$60 |
$189 |
$329 |
$738
|
Portfolio
Turnover
The
Fund and each underlying fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s
and the underlying funds' performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 10.8% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds that invests
in underlying funds of Principal Funds, Inc. (“PFI”), with a majority of the
Fund’s assets invested in index funds. Its underlying funds consist of domestic
and foreign equity funds, fixed-income funds, real asset funds, and other funds
that aim to offer diversification beyond traditional equity and fixed-income
securities. The asset class diversification of the Fund is designed to moderate
overall price volatility. The Fund may add, remove, or substitute underlying
funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
(including those in emerging markets) securities, securities denominated in
foreign currencies, investment companies (including index funds), and
derivatives. A derivative is a financial arrangement, the value of which is
derived from, or based on, a traditional security, asset, or market index. The
underlying funds principally use equity index futures and options in order to
gain exposure to a variety of securities or asset classes or attempt to reduce
risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Hybrid Income Fund if the Board of Directors determines that
the combination is in the best interests of Fund shareholders. It is expected
that at the target date in the Fund’s name, the shareholder will begin gradually
withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Futures.
Futures
contracts involve specific risks, including: the imperfect correlation between
the change in market value of the instruments held by the Fund and the price of
the futures contract; possible lack of a liquid secondary market for a futures
contract and the resulting inability to close a futures contract when desired;
counterparty risk; and if the Fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Emerging
Markets Risk. Investments
in emerging markets may have more risk than those in developed markets because
the emerging markets are less developed and more illiquid. Emerging markets can
also be subject to increased social, economic, regulatory, and political
uncertainties and can be extremely volatile. The U.S. Securities and Exchange
Commission, the U.S. Department of Justice, and other U.S. authorities may be
limited in their ability to pursue bad actors in emerging markets, including
with respect to fraud.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Index
Fund Risk. Index
funds use a passive investment approach and generally do not attempt to manage
market volatility, use defensive strategies, or reduce the effect of any
long-term periods of poor investment performance. Therefore, the Fund may hold
securities that present risks that an investment advisor researching individual
securities might seek to avoid. An index fund has operating and other expenses
while an index does not. As a result, over time, index funds tend to
underperform the index. The correlation between fund performance and index
performance may also be affected by the type of passive investment approach used
by a fund (sampling or replication), changes in securities markets, changes in
the composition of the index, and the timing of purchases and sales of fund
shares. Errors or delays in compiling or rebalancing the Index may impact the
performance of the Fund and increase transaction
costs.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Life
of Fund returns are measured from the date the Fund’s shares were first sold
(September 30, 2014).
For
periods prior to the inception date of Class R-6 shares (August 24, 2015) and
Class J shares (March 1, 2018), the performance shown in the table for these
newer classes is that of the Fund’s Institutional Class shares, adjusted to
reflect the respective fees and expenses of each class. These adjustments result
in performance for such periods that is no higher than the historical
performance of the Institutional Class shares, which were first sold on
September 30, 2014.
Total Returns as of
December 31
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| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
17.28 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(18.83) |
% |
|
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| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
Life
of Fund |
Institutional Class Return Before
Taxes |
19.38% |
10.79% |
8.04% |
Institutional Class Return After Taxes
on Distributions |
18.40% |
9.43% |
6.86% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
11.94% |
8.35% |
6.20% |
Class J
Return Before Taxes |
18.28% |
10.58% |
7.80% |
Class R-6
Return Before Taxes |
19.48% |
10.82% |
8.07% |
S&P
1500 TR (reflects no deduction for
fees, expenses, or taxes) |
25.47% |
15.39% |
11.85% |
S&P
Target Date 2045 Index (reflects no deduction for
fees, expenses, or taxes) |
19.14% |
10.68% |
7.96% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the S&P 1500 TR in order to meet
the revised definition of “broad-based securities market index.”
The S&P Target Date 2045 Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2014), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2014), Portfolio Manager
Purchase
and Sale of Fund Shares
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|
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| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional
and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME
HYBRID 2050 FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
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| |
|
Share
Class |
|
J |
Inst. |
R-6 |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
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| |
|
Share
Class |
|
J |
Inst. |
R-6 |
Management
Fees |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
N/A |
Other
Expenses |
0.10% |
0.10% |
0.03% |
Acquired
Fund Fees and Expenses |
0.37% |
0.37% |
0.37% |
Total
Annual Fund Operating Expenses |
0.62% |
0.47% |
0.40% |
Expense
Reimbursement
(1) |
N/A
|
(0.05)% |
(0.01)% |
Total
Annual Fund Operating Expenses After Expense Reimbursement |
0.62% |
0.42% |
0.39% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.05% for Institutional Class shares. In addition, for Class R-6 shares,
the expense limit will maintain "Other Expenses" (expressed as a percent of
average net assets on an annualized basis) not to exceed 0.02%, (excluding
interest expense, expenses related to fund investments, acquired fund fees and
expenses, and tax reclaim recovery expenses and other extraordinary expenses).
It is expected that the expense limits will continue through the period ending
February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limits prior to the end
of the period. Subject to applicable expense limits, the Fund may reimburse PGI
for expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$163 |
$199 |
$346 |
$774 |
Institutional
Class |
43 |
146 |
258 |
587 |
Class
R-6 |
40 |
127 |
223 |
504
|
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
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|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$63 |
$199 |
$346 |
$774
|
Portfolio
Turnover
The
Fund and each underlying fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s
and the underlying funds' performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 8.5% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds that invests
in underlying funds of Principal Funds, Inc. (“PFI”), with a majority of the
Fund’s assets invested in index funds. Its underlying funds consist of domestic
and foreign equity funds, fixed-income funds, real asset funds, and other funds
that aim to offer diversification beyond traditional equity and fixed-income
securities. The asset class diversification of the Fund is designed to moderate
overall price volatility. The Fund may add, remove, or substitute underlying
funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
(including those in emerging markets) securities, securities denominated in
foreign currencies, investment companies (including index funds), and
derivatives. A derivative is a financial arrangement, the value of which is
derived from, or based on, a traditional security, asset, or market index. The
underlying funds principally use equity index futures and options in order to
gain exposure to a variety of securities or asset classes or attempt to reduce
risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Hybrid Income Fund if the Board of Directors determines that
the combination is in the best interests of Fund shareholders. It is expected
that at the target date in the Fund’s name, the shareholder will begin gradually
withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Futures.
Futures
contracts involve specific risks, including: the imperfect correlation between
the change in market value of the instruments held by the Fund and the price of
the futures contract; possible lack of a liquid secondary market for a futures
contract and the resulting inability to close a futures contract when desired;
counterparty risk; and if the Fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Emerging
Markets Risk. Investments
in emerging markets may have more risk than those in developed markets because
the emerging markets are less developed and more illiquid. Emerging markets can
also be subject to increased social, economic, regulatory, and political
uncertainties and can be extremely volatile. The U.S. Securities and Exchange
Commission, the U.S. Department of Justice, and other U.S. authorities may be
limited in their ability to pursue bad actors in emerging markets, including
with respect to fraud.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Index
Fund Risk. Index
funds use a passive investment approach and generally do not attempt to manage
market volatility, use defensive strategies, or reduce the effect of any
long-term periods of poor investment performance. Therefore, the Fund may hold
securities that present risks that an investment advisor researching individual
securities might seek to avoid. An index fund has operating and other expenses
while an index does not. As a result, over time, index funds tend to
underperform the index. The correlation between fund performance and index
performance may also be affected by the type of passive investment approach used
by a fund (sampling or replication), changes in securities markets, changes in
the composition of the index, and the timing of purchases and sales of fund
shares. Errors or delays in compiling or rebalancing the Index may impact the
performance of the Fund and increase transaction
costs.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Life
of Fund returns are measured from the date the Fund’s shares were first sold
(September 30, 2014).
For
periods prior to the inception date of Class R-6 shares (August 24, 2015) and
Class J shares (March 1, 2018), the performance shown in the table for these
newer classes is that of the Fund’s Institutional Class shares, adjusted to
reflect the respective fees and expenses of each class. These adjustments result
in performance for such periods that is no higher than the historical
performance of the Institutional Class shares, which were first sold on
September 30, 2014.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
18.00 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(19.78) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
Life
of Fund |
Institutional Class Return Before
Taxes |
20.32% |
11.21% |
8.33% |
Institutional Class Return After Taxes
on Distributions |
19.42% |
9.88% |
7.16% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
12.54% |
8.71% |
6.46% |
Class J
Return Before Taxes |
19.09% |
10.95% |
8.09% |
Class R-6
Return Before Taxes |
20.35% |
11.24% |
8.34% |
S&P
1500 TR (reflects no deduction for
fees, expenses, or taxes) |
25.47% |
15.39% |
11.85% |
S&P
Target Date 2050 Index (reflects no deduction for
fees, expenses, or taxes) |
19.58% |
10.92% |
8.15% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the S&P 1500 TR in order to meet
the revised definition of “broad-based securities market index.”
The S&P Target Date 2050 Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2014), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2014), Portfolio Manager
Purchase
and Sale of Fund Share
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional
and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME
HYBRID 2055 FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-6 |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-6 |
Management
Fees |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
N/A |
Other
Expenses |
0.20% |
0.13% |
0.06% |
Acquired
Fund Fees and Expenses |
0.37% |
0.37% |
0.37% |
Total
Annual Fund Operating Expenses |
0.72% |
0.50% |
0.43% |
Expense
Reimbursement
(1) |
(0.05)% |
(0.08)% |
(0.04)% |
Total
Annual Fund Operating Expenses After Expense Reimbursement |
0.67% |
0.42% |
0.39% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.30% for Class J and 0.05% for Institutional Class shares. In addition,
for Class R-6 shares, the expense limit will maintain "Other Expenses"
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.02%, (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses). It is expected that the expense limits will continue
through the period ending February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limits prior to the end
of the period. Subject to applicable expense limits, the Fund may reimburse PGI
for expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$168 |
$225 |
$396 |
$890 |
Institutional
Class |
43 |
152 |
272 |
621 |
Class
R-6 |
40 |
134 |
237 |
538
|
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$68 |
$225 |
$396 |
$890
|
Portfolio
Turnover
The
Fund and each underlying fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s
and the underlying funds' performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 7.3% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds that invests
in underlying funds of Principal Funds, Inc. (“PFI”), with a majority of the
Fund’s assets invested in index funds. Its underlying funds consist of domestic
and foreign equity funds, fixed-income funds, real asset funds, and other funds
that aim to offer diversification beyond traditional equity and fixed-income
securities. The asset class diversification of the Fund is designed to moderate
overall price volatility. The Fund may add, remove, or substitute underlying
funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
(including those in emerging markets) securities, securities denominated in
foreign currencies, investment companies (including index funds), and
derivatives. A derivative is a financial arrangement, the value of which is
derived from, or based on, a traditional security, asset, or market index. The
underlying funds principally use equity index futures and options in order to
gain exposure to a variety of securities or asset classes or attempt to reduce
risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Hybrid Income Fund if the Board of Directors determines that
the combination is in the best interests of Fund shareholders. It is expected
that at the target date in the Fund’s name, the shareholder will begin gradually
withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund
shareholders bear indirectly their proportionate share of the expenses of other
investment companies (for example, other mutual funds or exchange-traded funds)
in which the Fund invests (“underlying funds”). The Fund’s selection and
weighting of asset classes and allocation of investments in underlying funds may
cause it to underperform other funds with a similar investment objective. The
Fund’s performance and risks correspond directly to the performance and risks of
the underlying funds in which it invests, proportionately in accordance with the
weightings of such investments, and there is no assurance that the underlying
funds will achieve their investment objectives. Management of the Fund entails
potential conflicts of interest: the Fund invests in affiliated underlying
funds; and PGI and its affiliates may earn different fees from different
underlying funds and may have an incentive to allocate more Fund assets to
underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Futures.
Futures
contracts involve specific risks, including: the imperfect correlation between
the change in market value of the instruments held by the Fund and the price of
the futures contract; possible lack of a liquid secondary market for a futures
contract and the resulting inability to close a futures contract when desired;
counterparty risk; and if the Fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Emerging
Markets Risk. Investments
in emerging markets may have more risk than those in developed markets because
the emerging markets are less developed and more illiquid. Emerging markets can
also be subject to increased social, economic, regulatory, and political
uncertainties and can be extremely volatile. The U.S. Securities and Exchange
Commission, the U.S. Department of Justice, and other U.S. authorities may be
limited in their ability to pursue bad actors in emerging markets, including
with respect to fraud.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Index
Fund Risk. Index
funds use a passive investment approach and generally do not attempt to manage
market volatility, use defensive strategies, or reduce the effect of any
long-term periods of poor investment performance. Therefore, the Fund may hold
securities that present risks that an investment advisor researching individual
securities might seek to avoid. An index fund has operating and other expenses
while an index does not. As a result, over time, index funds tend to
underperform the index. The correlation between fund performance and index
performance may also be affected by the type of passive investment approach used
by a fund (sampling or replication), changes in securities markets, changes in
the composition of the index, and the timing of purchases and sales of fund
shares. Errors or delays in compiling or rebalancing the Index may impact the
performance of the Fund and increase transaction
costs.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Life
of Fund returns are measured from the date the Fund’s shares were first sold
(September 30, 2014).
For
periods prior to the inception date of Class R-6 shares (August 24, 2015) and
Class J shares (March 1, 2018), the performance shown in the table for these
newer classes is that of the Fund’s Institutional Class shares, adjusted to
reflect the respective fees and expenses of each class. These adjustments result
in performance for such periods that is no higher than the historical
performance of the Institutional Class shares, which were first sold on
September 30, 2014.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
18.35 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(20.52) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
Life
of Fund |
Institutional Class Return Before
Taxes |
20.35% |
11.39% |
8.45% |
Institutional Class Return After Taxes
on Distributions |
19.48% |
10.16% |
7.35% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
12.54% |
8.89% |
6.58% |
Class J
Return Before Taxes |
19.01% |
11.13% |
8.18% |
Class R-6
Return Before Taxes |
20.33% |
11.43% |
8.47% |
S&P
1500 TR (reflects no deduction for
fees, expenses, or taxes) |
25.47% |
15.39% |
11.85% |
S&P
Target Date 2055 Index (reflects no deduction for
fees, expenses, or taxes) |
19.62% |
10.98% |
8.22% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the S&P 1500 TR in order to meet
the revised definition of “broad-based securities market index.”
The S&P Target Date 2055 Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2014), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2014), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional
and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME
HYBRID 2060 FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your
investment)
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-6 |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-6 |
Management
Fees |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
N/A |
Other
Expenses |
0.37% |
0.26% |
0.11% |
Acquired
Fund Fees and Expenses |
0.37% |
0.37% |
0.37% |
Total
Annual Fund Operating Expenses |
0.89% |
0.63% |
0.48% |
Expense
Reimbursement (1) |
(0.22)% |
(0.21)% |
(0.09)% |
Total
Annual Fund Operating Expenses After Expense Reimbursement |
0.67% |
0.42% |
0.39% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.30% for Class J and 0.05% for Institutional Class shares. In addition,
for Class R-6 shares, the expense limit will maintain "Other Expenses"
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.02%, (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses). It is expected that the expense limits will continue
through the period ending February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limits prior to the end
of the period. Subject to applicable expense limits, the Fund may reimburse PGI
for expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$168 |
$262 |
$472 |
$1,076 |
Institutional
Class |
43 |
181 |
330 |
766 |
Class
R-6 |
40 |
145 |
260 |
595
|
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$68 |
$262 |
$472 |
$1,076 |
Portfolio
Turnover
The
Fund and each underlying fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s
and the underlying funds' performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 7.6% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds that invests
in underlying funds of Principal Funds, Inc. (“PFI”), with a majority of the
Fund’s assets invested in index funds. Its underlying funds consist of domestic
and foreign equity funds, fixed-income funds, real asset funds, and other funds
that aim to offer diversification beyond traditional equity and fixed-income
securities. The asset class diversification of the Fund is designed to moderate
overall price volatility. The Fund may add, remove, or substitute underlying
funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
(including those in emerging markets) securities, securities denominated in
foreign currencies, investment companies (including index funds), and
derivatives. A derivative is a financial arrangement, the value of which is
derived from, or based on, a traditional security, asset, or market index. The
underlying funds principally use equity index futures and options in order to
gain exposure to a variety of securities or asset classes or attempt to reduce
risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Hybrid Income Fund if the Board of Directors determines that
the combination is in the best interests of Fund shareholders. It is expected
that at the target date in the Fund’s name, the shareholder will begin gradually
withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Futures.
Futures
contracts involve specific risks, including: the imperfect correlation between
the change in market value of the instruments held by the Fund and the price of
the futures contract; possible lack of a liquid secondary market for a futures
contract and the resulting inability to close a futures contract when desired;
counterparty risk; and if the Fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Emerging
Markets Risk. Investments
in emerging markets may have more risk than those in developed markets because
the emerging markets are less developed and more illiquid. Emerging markets can
also be subject to increased social, economic, regulatory, and political
uncertainties and can be extremely volatile. The U.S. Securities and Exchange
Commission, the U.S. Department of Justice, and other U.S. authorities may be
limited in their ability to pursue bad actors in emerging markets, including
with respect to fraud.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Index
Fund Risk. Index
funds use a passive investment approach and generally do not attempt to manage
market volatility, use defensive strategies, or reduce the effect of any
long-term periods of poor investment performance. Therefore, the Fund may hold
securities that present risks that an investment advisor researching individual
securities might seek to avoid. An index fund has operating and other expenses
while an index does not. As a result, over time, index funds tend to
underperform the index. The correlation between fund performance and index
performance may also be affected by the type of passive investment approach used
by a fund (sampling or replication), changes in securities markets, changes in
the composition of the index, and the timing of purchases and sales of fund
shares. Errors or delays in compiling or rebalancing the Index may impact the
performance of the Fund and increase transaction
costs.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Life
of Fund returns are measured from the date the Fund’s shares were first sold
(September 30, 2014).
For
periods prior to the inception date of Class R-6 shares (August 24, 2015) and
Class J shares (March 1, 2018), the performance shown in the table for these
newer classes is that of the Fund’s Institutional Class shares, adjusted to
reflect the respective fees and expenses of each class. These adjustments result
in performance for such periods that is no higher than the historical
performance of the Institutional Class shares, which were first sold on
September 30, 2014.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
18.71 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(20.90) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
Life
of Fund |
Institutional Class Return Before
Taxes |
20.30% |
11.56% |
8.57% |
Institutional Class Return After Taxes
on Distributions |
19.45% |
10.41% |
7.53% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
12.49% |
9.04% |
6.69% |
Class J
Return Before Taxes |
19.06% |
11.28% |
8.29% |
Class R-6
Return Before Taxes |
20.33% |
11.60% |
8.60% |
S&P
1500 TR (reflects no deduction for
fees, expenses, or taxes) |
25.47% |
15.39% |
11.85% |
S&P
Target Date 2060 Index (reflects no deduction for
fees, expenses, or taxes) |
19.74% |
11.04% |
8.27% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the S&P 1500 TR in order to meet
the revised definition of “broad-based securities market index.”
The S&P Target Date 2060 Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2014), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2014), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional
and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME
HYBRID 2065 FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-6 |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-6 |
Management
Fees |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
N/A |
Other
Expenses |
0.72% |
1.24% |
0.34% |
Acquired
Fund Fees and Expenses |
0.37% |
0.37% |
0.37% |
Total
Annual Fund Operating Expenses |
1.24% |
1.61% |
0.71% |
Expense
Reimbursement (1) |
(0.57)% |
(1.19)% |
(0.32)% |
Total
Annual Fund Operating Expenses After Expense Reimbursement |
0.67% |
0.42% |
0.39% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.30% for Class J and 0.05% for Institutional Class shares. In addition,
for Class R-6 shares, the expense limit will maintain "Other Expenses"
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.02%, (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses). It is expected that the expense limits will continue
through the period ending February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limits prior to the end
of the period. Subject to applicable expense limits, the Fund may reimburse PGI
for expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$168 |
$337 |
$626 |
$1,450 |
Institutional
Class |
43 |
391 |
763 |
1,810 |
Class
R-6 |
40 |
195 |
363 |
852
|
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$68 |
$337 |
$626 |
$1,450 |
Portfolio
Turnover
The
Fund and each underlying fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s
and the underlying funds' performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 16.3% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds that invests
in underlying funds of Principal Funds, Inc. (“PFI”), with a majority of the
Fund’s assets invested in index funds. Its underlying funds consist of domestic
and foreign equity funds, fixed-income funds, real asset funds, and other funds
that aim to offer diversification beyond traditional equity and fixed-income
securities. The asset class diversification of the Fund is designed to moderate
overall price volatility. The Fund may add, remove, or substitute underlying
funds at any time.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, the Fund considers both
quantitative measures (e.g., past performance, expected levels of risk and
returns, expense levels, diversification, and style consistency) and qualitative
factors (e.g., organizational stability, investment experience, investment and
risk management processes, and information, trading, and compliance systems).
There are no minimum or maximum percentages of assets that the Fund must invest
in a specific asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
(including those in emerging markets) securities, securities denominated in
foreign currencies, investment companies (including index funds), and
derivatives. A derivative is a financial arrangement, the value of which is
derived from, or based on, a traditional security, asset, or market index. The
underlying funds principally use equity index futures and options in order to
gain exposure to a variety of securities or asset classes or attempt to reduce
risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Hybrid Income Fund if the Board of Directors determines that
the combination is in the best interests of Fund shareholders. It is expected
that at the target date in the Fund’s name, the shareholder will begin gradually
withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Futures.
Futures
contracts involve specific risks, including: the imperfect correlation between
the change in market value of the instruments held by the Fund and the price of
the futures contract; possible lack of a liquid secondary market for a futures
contract and the resulting inability to close a futures contract when desired;
counterparty risk; and if the Fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Emerging
Markets Risk. Investments
in emerging markets may have more risk than those in developed markets because
the emerging markets are less developed and more illiquid. Emerging markets can
also be subject to increased social, economic, regulatory, and political
uncertainties and can be extremely volatile. The U.S. Securities and Exchange
Commission, the U.S. Department of Justice, and other U.S. authorities may be
limited in their ability to pursue bad actors in emerging markets, including
with respect to fraud.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Index
Fund Risk. Index
funds use a passive investment approach and generally do not attempt to manage
market volatility, use defensive strategies, or reduce the effect of any
long-term periods of poor investment performance. Therefore, the Fund may hold
securities that present risks that an investment advisor researching individual
securities might seek to avoid. An index fund has operating and other expenses
while an index does not. As a result, over time, index funds tend to
underperform the index. The correlation between fund performance and index
performance may also be affected by the type of passive investment approach used
by a fund (sampling or replication), changes in securities markets, changes in
the composition of the index, and the timing of purchases and sales of fund
shares. Errors or delays in compiling or rebalancing the Index may impact the
performance of the Fund and increase transaction
costs.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
Life
of Fund returns are measured from the date the Fund’s shares were first sold
(September 6, 2017).
For
periods prior to the inception date of Class J shares (March 1, 2018), the
performance shown in the table for Class J shares is that of the Fund’s
Institutional Class shares, adjusted to reflect the fees and expenses of Class J
shares. These adjustments result in performance for such periods that is no
higher than the historical performance of the Institutional Class shares, which
were first sold on September 6, 2017.
During
2018, Class R-6 experienced a one-time loss of approximately $0.33 per share as
a result of a large redemption. If such loss had not been recognized, the total
return amounts expressed herein would have been higher. During May of 2019,
Class R-6 experienced a one-time gain of approximately $0.35 per share as a
result of a reimbursement by PGI, the investment advisor. If such gain had not
been recognized, the total return amounts expressed herein would have been
lower.
Total Returns as of
December 31
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|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
19.12 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(21.10) |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
|
Life
of Fund |
|
Institutional Class Return Before
Taxes |
20.34% |
11.78% |
| 8.65% |
|
Institutional Class Return After Taxes
on Distributions |
19.53% |
10.92% |
| 7.74% |
|
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
12.50% |
9.27% |
| 6.69% |
|
Class J
Return Before Taxes |
19.04% |
11.46% |
| 8.34% |
|
Class R-6
Return Before Taxes |
20.33% |
12.56% |
(2) |
8.68% |
(1)(2) |
S&P
1500 TR (reflects no deduction for
fees, expenses, or taxes) |
25.47% |
15.39% |
| 12.72% |
|
S&P
Target Date 2065+ Index (reflects no deduction for
fees, expenses, or taxes) |
19.84% |
11.09% |
| 8.61% |
|
(1)
During 2018,
Class R-6 experienced a one-time loss of approximately $0.33 per share as a
result of a large redemption. If such loss had not been recognized, the total
return amounts expressed herein would have been
higher.
(2)
During May of 2019, Class
R-6 experienced a one-time gain of approximately $0.35 per share as a result of
a reimbursement by PGI, the investment advisor. If such gain had not been
recognized, the total return amounts expressed herein would have been
lower.
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the S&P 1500 TR in order to meet
the revised definition of “broad-based securities market index.”
The S&P Target Date 2065+ Index
is included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2017), Portfolio Manager
• Scott
Smith (since 2017), Portfolio Manager
• Randy
L. Welch (since 2017), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional
and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
PRINCIPAL LIFETIME
HYBRID 2070 FUND
Objective
The Fund seeks a total return consisting of long-term growth of
capital and current income.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
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| |
|
Share
Class |
|
J |
Inst. |
R-6 |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-6 |
Management
Fees |
0.00% |
0.00% |
0.00% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
N/A |
Other
Expenses |
40.37% |
186.86% |
40.81% |
Acquired
Fund Fees and Expenses |
0.40% |
0.40% |
0.40% |
Total
Annual Fund Operating Expenses |
40.92% |
187.26% |
41.21% |
Expense
Reimbursement (1) |
(40.22)% |
(186.81)% |
(40.79)% |
Total
Annual Fund Operating Expenses After Expense Reimbursement |
0.70% |
0.45% |
0.42% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.30% for Class J and 0.05% for Institutional Class shares. In addition,
for Class R-6 shares, the expense limit will maintain "Other Expenses"
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.02%, (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses). It is expected that the expense limits will continue
through the period ending February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limits prior to the end
of the period. Subject to applicable expense limits, the Fund may reimburse PGI
for expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
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|
|
|
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|
|
| |
| 1
year |
3
years |
5
years |
10
years |
Class
J |
$172 |
$5,817 |
$8,176 |
$9,642 |
Institutional
Class |
46 |
354 |
563 |
1,163 |
Class
R-6 |
43 |
5,824 |
8,176 |
9,620 |
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| 1
year |
3
years |
5
years |
10
years |
Class
J |
$72 |
$5,817 |
$8,176 |
$9,642 |
Portfolio
Turnover
The
Fund and each underlying fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s
and the underlying funds' performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 130.0% of the average value of its
portfolio.
Principal Investment
Strategies
The
Fund operates as a “target date fund” that invests according to an asset
allocation strategy designed for investors having a retirement investment goal
close to the year in the Fund’s name. The Fund is a fund of funds that invests
in underlying funds of Principal Funds, Inc. (“PFI”), with a majority of the
Fund’s assets invested in index funds. Its underlying funds consist of domestic
and foreign equity funds, fixed-income funds, real asset funds, and other funds
that aim to offer diversification beyond traditional equity and fixed-income
securities. The asset class diversification of the Fund is designed to moderate
overall price volatility. The Fund may add, remove, or substitute underlying
funds at any time. The Fund’s strategies may result in the active and frequent
trading of the Fund’s portfolio securities.
The
Fund is managed with strategic or long-term asset class targets and target
ranges. There is a rebalancing strategy that aligns with the target weights to
identify asset classes that are either overweight or underweight. The Fund may
shift asset class targets in response to normal evaluative processes, the
shortening time horizon of the Fund, or changes in market forces or Fund
circumstances.
In
selecting underlying funds and target weights, Principal Global Investors, LLC
(“PGI”), the Fund’s investment advisor, considers both quantitative measures
(e.g., past performance, expected levels of risk and returns, expense levels,
diversification, and style consistency) and qualitative factors (e.g.,
organizational stability, investment experience, investment and risk management
processes, and information, trading, and compliance systems). There are no
minimum or maximum percentages of assets that the Fund must invest in a specific
asset class or underlying fund.
The
underlying funds invest in growth and value stocks of small, medium, and large
market capitalization companies, fixed-income securities, domestic and foreign
(including those in emerging markets) securities, securities denominated in
foreign currencies, investment companies (including index funds), and
derivatives. A derivative is a financial arrangement, the value of which is
derived from, or based on, a traditional security, asset, or market index. The
underlying funds principally use equity index futures and options in order to
gain exposure to a variety of securities or asset classes or attempt to reduce
risk.
The
Fund’s asset allocation will become more conservative over time as investment
goals near (for example, retirement, which is assumed to begin at age 65) and
investors become more risk-averse. Approximately 10 years after its target year,
the Fund’s underlying fund allocation is expected to match that of the Principal
LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the
Principal LifeTime Hybrid Income Fund if the Board of Directors determines that
the combination is in the best interests of Fund shareholders. It is expected
that at the target date in the Fund’s name, the shareholder will begin gradually
withdrawing the account’s value.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund
shareholders bear indirectly their proportionate share of the expenses of other
investment companies (for example, other mutual funds or exchange-traded funds)
in which the Fund invests (“underlying funds”). The Fund’s selection and
weighting of asset classes and allocation of investments in underlying funds may
cause it to underperform other funds with a similar investment objective. The
Fund’s performance and risks correspond directly to the performance and risks of
the underlying funds in which it invests, proportionately in accordance with the
weightings of such investments, and there is no assurance that the underlying
funds will achieve their investment objectives. Management of the Fund entails
potential conflicts of interest: the Fund invests in affiliated underlying
funds; and PGI and its affiliates may earn different fees from different
underlying funds and may have an incentive to allocate more Fund assets to
underlying funds from which they receive higher
fees.
Target
Date Fund Risk. A
target date fund should not be selected based solely on age or retirement date
because there is no guarantee that this Fund will provide adequate income at or
through retirement.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Counterparty
Risk. Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its
obligations.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Futures.
Futures
contracts involve specific risks, including: the imperfect correlation between
the change in market value of the instruments held by the Fund and the price of
the futures contract; possible lack of a liquid secondary market for a futures
contract and the resulting inability to close a futures contract when desired;
counterparty risk; and if the Fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
•Options.
Options
involve specific risks, including: the imperfect correlation between the change
in market value of the instruments held by the Fund and the price of the
options; counterparty risk; difference in trading hours for the options markets
and the markets for the underlying securities (rate movements can take place in
the underlying markets that cannot be reflected in the options markets); and an
insufficient liquid secondary market for particular
options.
Emerging
Markets Risk. Investments
in emerging markets may have more risk than those in developed markets because
the emerging markets are less developed and more illiquid. Emerging markets can
also be subject to increased social, economic, regulatory, and political
uncertainties and can be extremely volatile. The U.S. Securities and Exchange
Commission, the U.S. Department of Justice, and other U.S. authorities may be
limited in their ability to pursue bad actors in emerging markets, including
with respect to fraud.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
High
Portfolio Turnover Risk. High portfolio turnover (more than 100%) caused by active and
frequent trading of portfolio securities may result in accelerating the
realization of taxable gains and losses, lower fund performance, and increased
brokerage costs.
Index
Fund Risk. Index
funds use a passive investment approach and generally do not attempt to manage
market volatility, use defensive strategies, or reduce the effect of any
long-term periods of poor investment performance. Therefore, the Fund may hold
securities that present risks that an investment advisor researching individual
securities might seek to avoid. An index fund has operating and other expenses
while an index does not. As a result, over time, index funds tend to
underperform the index. The correlation between fund performance and index
performance may also be affected by the type of passive investment approach used
by a fund (sampling or replication), changes in securities markets, changes in
the composition of the index, and the timing of purchases and sales of fund
shares. Errors or delays in compiling or rebalancing the Index may impact the
performance of the Fund and increase transaction
costs.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Performance
No performance
information is shown below because the Fund has not yet had a calendar year of
performance. The Fund’s
performance is benchmarked against the S&P 1500 TR and the S&P Target
Date 65+ Index. Performance information provides an indication of the risks of
investing in the Fund. Past
performance is not necessarily an indication of how the Fund will perform in the
future. You may get updated performance information at
www.PrincipalAM.com.
Effective March 1, 2024 the Fund
changed its primary broad-based index to the S&P 1500 TR in order to meet
the revised definition of "broad-based securities market index."
The S&P Target Date 2065+ Index
is included as an additional index for the Fund as it shows how the Fund's
performance compares with returns of an index of funds with similar investment
objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2023), Portfolio Manager
• Scott
Smith (since 2023), Portfolio Manager
• Randy
L. Welch (since 2023), Portfolio Manager
Purchase
and Sale of Fund Shares
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Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional
and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchasers. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
REAL ESTATE SECURITIES
FUND
Objective
The Fund seeks to generate a total return.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
You may
qualify for sales charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
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A |
C |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.50% |
None |
None |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
1.00% |
None |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
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A |
C |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Management
Fees |
0.80% |
0.80% |
0.80% |
0.80% |
0.80% |
0.80% |
0.80% |
0.80% |
0.80% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
1.00% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
N/A |
Other
Expenses |
0.17% |
0.30% |
0.20% |
0.12% |
0.53% |
0.32% |
0.28% |
0.26% |
0.01% |
Total
Annual Fund Operating Expenses |
1.22% |
2.10% |
1.15% |
0.92% |
1.68% |
1.37% |
1.18% |
1.06% |
0.81% |
Expense
Reimbursement (1) |
N/A |
N/A |
N/A |
(0.06)% |
N/A |
N/A |
N/A |
N/A |
N/A |
Total
Annual Fund Operating Expenses after Expense Reimbursement |
1.22% |
2.10% |
1.15% |
0.86% |
1.68% |
1.37% |
1.18% |
1.06% |
0.81% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.86% for Institutional Class shares. It is expected that the expense
limit will continue through the period ending February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limit prior to the end of
the period. Subject to applicable expense limits, the Fund may reimburse PGI for
expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example assumes conversion of the Class
C shares to Class A shares after the eighth year. The Example also assumes that
your investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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1
year |
3
years |
5
years |
10
years |
Class
A |
$667 |
$916 |
$1,183 |
$1,946 |
Class
C |
313 |
658 |
1,129 |
2,206 |
Class
J |
217 |
365 |
633 |
1,398 |
Institutional
Class |
88 |
287 |
503 |
1,126 |
Class
R-1 |
171 |
530 |
913 |
1,987 |
Class
R-3 |
139 |
434 |
750 |
1,646 |
Class
R-4 |
120 |
375 |
649 |
1,432 |
Class
R-5 |
108 |
337 |
585 |
1,294 |
Class
R-6 |
83 |
259 |
450 |
1,002 |
With respect to Classes C and
J shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
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1
year |
3
years |
5
years |
10
years |
Class
C |
$213 |
$658 |
$1,129 |
$2,206 |
Class
J |
117 |
365 |
633 |
1,398 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
16.1% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in equity securities of companies
principally engaged in the real estate industry at the time of purchase. A real
estate company has at least 50% of its assets, income, or profits derived from
products or services related to the real estate industry. Real estate companies
include real estate investment trusts (“REITs”) and companies with substantial
real estate holdings such as paper, lumber, hotel, and entertainment companies,
as well as those whose products and services relate to the real estate industry,
including building supply manufacturers, mortgage lenders, and mortgage
servicing companies.
REITs
are pooled investment vehicles that invest in income-producing real estate, real
estate-related loans, or other types of real estate interests. REITs are
corporations or business trusts that are permitted to eliminate corporate level
federal income taxes by meeting certain requirements of the Internal Revenue
Code.
The
Fund invests in equity securities regardless of market capitalization (small,
medium, or large). The Fund invests in growth and value equity securities. The
Fund concentrates its investments (invest more than 25% of its net assets) in
securities in the real estate industry.
The
Fund is considered non-diversified, which means it can invest a higher
percentage of assets in securities of individual issuers than a diversified
fund. As a result, changes in the value of a single investment could cause
greater fluctuations in the Fund’s share price than would occur in a more
diversified fund.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of
significance.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Industry
Concentration Risk. A
fund that concentrates investments in a particular industry or group of
industries has greater exposure than other funds to market, economic, and other
factors affecting that industry or group of industries.
•Real
Estate.
A fund concentrating in the real estate industry is subject to the risks
associated with direct ownership of real estate, securities of companies in the
real estate industry, and/or real estate investment trusts. These risks are
explained more fully below in Real Estate Investment Trusts (REITs) Risk and
Real Estate Securities
Risk.
Non-Diversification
Risk. A
non-diversified fund may invest a high percentage of its assets in the
securities of a small number of issuers and is more likely than diversified
funds to be significantly affected by a specific security’s poor
performance.
Real
Estate Investment Trusts (“REITs”) Risk. In
addition to risks associated with investing in real estate securities, REITs are
dependent upon management skills, are not diversified, and are subject to heavy
cash flow dependency, risks of default by borrowers, and self-liquidation.
Investment in REITs also involves risks similar to risks of investing in small
market capitalization companies, such as limited financial resources, less
frequent and limited volume trading, and may be subject to more abrupt or
erratic price movements than larger company securities. A REIT could fail to
qualify for tax-free pass-through of income under the Internal Revenue Code.
Fund shareholders will indirectly bear their proportionate share of the expenses
of REITs in which the fund invests.
Real
Estate Securities Risk. Investing
in real estate securities subjects the fund to the risks associated with the
real estate market (which are similar to the risks associated with direct
ownership in real estate), including declines in real estate values, loss due to
casualty or condemnation, property taxes, interest rate changes, increased
expenses, cash flow of underlying real estate assets, regulatory changes
(including zoning, land use, and rents), and environmental problems, as well as
to the risks related to the management skill and creditworthiness of the
issuer.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect
sales charges on Class A shares; if they did, results would be
lower. The table shows for the last one, five, and ten calendar
year periods (or, if shorter, the life of the Fund), how the Fund’s average
annual total returns compare with those of one or more broad measures of market
performance.
For
periods prior to the inception date of Class R-6 shares (November 22, 2016), the
performance shown in the table for Class R-6 shares is that of the Fund’s Class
R-3 shares, adjusted to reflect the fees and expenses of Class R-6 shares.
However, where the adjustment for fees and expenses results in performance for
Class R-6 shares that is higher than the historical performance of the Class R-3
shares, the historical performance of the Class R-3 shares is used. These
adjustments result in performance for such periods that is no higher than the
historical performance of the Class R-3 shares.
Total Returns as of
December 31
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Highest
return for a quarter during the period of the bar chart
above: |
Q1
2019 |
17.29 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(22.76) |
% |
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Average
Annual Total Returns
For
the periods ended December 31, 2023 |
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1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
6.69% |
6.89% |
7.63% |
Class A
Return After Taxes on Distributions |
5.95% |
5.99% |
6.57% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
4.09% |
5.19% |
5.83% |
Class C
Return Before Taxes |
10.89% |
7.24% |
7.56% |
Class J
Return Before Taxes |
11.98% |
8.24% |
8.37% |
Institutional Class Return Before
Taxes |
13.33% |
8.48% |
8.64% |
Class R-1
Return Before Taxes |
12.39% |
7.62% |
7.77% |
Class R-3
Return Before Taxes |
12.74% |
7.94% |
8.11% |
Class R-4
Return Before Taxes |
12.95% |
8.15% |
8.31% |
Class R-5
Return Before Taxes |
13.08% |
8.29% |
8.44% |
Class R-6
Return Before Taxes |
13.39% |
8.56% |
8.54% |
Russell
3000 Index (reflects no deduction for
fees, expenses, or taxes) |
25.96% |
15.16% |
11.48% |
FTSE
NAREIT All Equity REIT Index (reflects no deduction for
fees, expenses, or taxes) |
11.36% |
7.59% |
7.95% |
MSCI US
REIT Index (reflects no deduction for
fees, expenses, or taxes) |
13.74% |
7.40% |
7.60% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Russell 3000 Index in order to meet
the revised definition of “broad-based securities market index.”
The FTSE NAREIT All Equity REIT Index
is included as an additional index for the Fund as it shows how the Fund’s
performance compares with returns of an index of funds with similar investment
objectives. Prior to March 1, 2024, the Fund’s index was the MSCI US REIT
Index.
Investment
Advisor
Principal
Global Investors, LLC
Sub-Advisor
and Portfolio Managers
Principal
Real Estate Investors, LLC
• Keith
Bokota (since 2013), Portfolio Manager
• Anthony
Kenkel (since 2012), Portfolio Manager
• Kelly
D. Rush (since 2000), Portfolio Manager
Purchase
and Sale of Fund Shares
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Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A,
C, and J |
Initial
Investment |
$1,000(1) |
A,
C, and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A,
C, and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, R-5, and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchases. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances.
Class
C shares are subject to an 8-year automatic conversion plan whereby Class C
shares held for eight years after purchase will automatically convert to Class A
shares of the same Fund.
See
Purchase of Fund Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
SAM (STRATEGIC ASSET
MANAGEMENT) BALANCED PORTFOLIO
Objective
The Fund seeks to provide as high a level of total return
(consisting of reinvested income and capital appreciation) as is consistent with
reasonable risk.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$50,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
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A |
C |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.50% |
None |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
1.00% |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
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A |
C |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.28% |
0.28% |
0.28% |
0.28% |
0.28% |
0.28% |
0.28% |
0.28% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
1.00% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.09% |
0.12% |
0.03% |
0.02% |
0.53% |
0.32% |
0.28% |
0.26% |
Acquired
Fund Fees and Expenses |
0.50% |
0.50% |
0.50% |
0.50% |
0.50% |
0.50% |
0.50% |
0.50% |
Total
Annual Fund Operating Expenses |
1.12% |
1.90% |
0.96% |
0.80% |
1.66% |
1.35% |
1.16% |
1.04% |
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example assumes conversion of the Class
C shares to Class A shares after the eighth year. The Example also assumes that
your investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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1
year |
3
years |
5
years |
10
years |
Class
A |
$658 |
$886 |
$1,133 |
$1,838 |
Class
C |
293 |
597 |
1,026 |
2,019 |
Class
J |
198 |
306 |
531 |
1,178 |
Institutional
Class |
82 |
255 |
444 |
990 |
Class
R-1 |
169 |
523 |
902 |
1,965 |
Class
R-3 |
137 |
428 |
739 |
1,624 |
Class
R-4 |
118 |
368 |
638 |
1,409 |
Class
R-5 |
106 |
331 |
574 |
1,271 |
With respect to Classes C and
J shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
C |
$193 |
$597 |
$1,026 |
$2,019 |
Class
J |
98 |
306 |
531 |
1,178 |
Portfolio
Turnover
The Fund and each underlying fund pays transaction costs, such as
commissions, when it buys and sells securities (or “turns over” its portfolio).
A higher portfolio turnover rate may indicate higher transaction costs. These
costs, which are not reflected in Annual Fund Operating Expenses or in the
Example, affect the Fund’s and the underlying funds' performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 26.1% of the average value of its
portfolio.
Principal Investment
Strategies
The
SAM Portfolios operate as funds of funds and invest principally in funds and
exchange-traded funds (“ETFs”) of Principal Funds, Inc. and Principal
Exchange-Traded Funds (“Underlying Funds”). Each SAM Portfolio generally
categorizes each Underlying Fund as a fixed-income, equity, or specialty fund
based on its investment profile. Each SAM Portfolio typically allocates its
assets among Underlying Funds, and within predetermined percentage ranges, as
determined by the SAM Portfolio in accordance with its outlook for the economy,
the financial markets, and the relative market valuations of the Underlying
Funds. The asset class diversification of the SAM Portfolio is designed to
moderate overall price volatility and cushion severe losses in any one
investment sector.
The
Fund generally invests:
• between
20% and 60% of its assets in fixed-income funds, and less than 40% in any one
fixed-income fund; such funds generally invest in fixed-income instruments such
as securitized products and corporate bonds;
• between
40% and 80% of its assets in equity funds, and less than 30% in any one equity
fund; such funds generally invest in equity securities of domestic and foreign
companies (including in emerging markets), including small, medium, and large
market capitalization companies, and growth and value stock; and
• less
than 20% of its assets in specialty funds, and less than 20% in any one
specialty fund; such funds generally offer unique combinations of traditional
equity securities and fixed-income securities or use alternative investment
strategies that aim to offer diversification beyond traditional equity and
fixed-income securities and include investments in such assets as
infrastructure, commodities, currencies, and natural resources
companies.
The
Fund may temporarily exceed these percentage ranges and may alter the percentage
ranges when it deems appropriate.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Emerging
Markets Risk. Investments
in emerging markets may have more risk than those in developed markets because
the emerging markets are less developed and more illiquid. Emerging markets can
also be subject to increased social, economic, regulatory, and political
uncertainties and can be extremely volatile. The U.S. Securities and Exchange
Commission, the U.S. Department of Justice, and other U.S. authorities may be
limited in their ability to pursue bad actors in emerging markets, including
with respect to fraud.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership of the Fund’s shares may be concentrated in one or a few
large investors (such as funds of funds, institutional investors, and asset
allocation programs) that may redeem or purchase shares in large quantities.
These transactions may cause the Fund to sell securities to meet redemptions or
to invest additional cash at times it would not otherwise do so, which may
result in increased transaction costs, increased expenses, changes to expense
ratios, and adverse effects to Fund performance. Such transactions may also
accelerate the realization of taxable income if sales of portfolio securities
result in gains. Moreover, reallocations by large shareholders among share
classes of a fund may result in changes to the expense ratios of affected
classes, which may increase the expenses paid by shareholders of the class that
experienced the redemption.
Securitized
Products Risk. Investments
in securitized products are subject to risks similar to traditional fixed-income
securities, such as credit, interest rate, liquidity, prepayment, extension, and
default risk, as well as additional risks associated with the nature of the
assets and the servicing of those assets. Unscheduled prepayments on securitized
products may have to be reinvested at lower rates. A reduction in prepayments
may increase the effective maturities of these securities, exposing them to the
risk of decline in market value over time (extension
risk).
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect
sales charges on Class A shares; if they did, results would be
lower. The table shows for the last one, five, and ten calendar
year periods (or, if shorter, the life of the Fund), how the Fund’s average
annual total returns compare with those of one or more broad measures of market
performance.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
13.09 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(15.43) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
9.24% |
6.49% |
5.19% |
Class A
Return After Taxes on Distributions |
8.67% |
5.07% |
3.63% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
5.63% |
4.88% |
3.75% |
Class C
Return Before Taxes |
13.66% |
6.88% |
5.14% |
Class J
Return Before Taxes |
14.77% |
7.88% |
5.93% |
Institutional Class Return Before
Taxes |
15.91% |
8.03% |
6.12% |
Class R-1
Return Before Taxes |
14.96% |
7.14% |
5.22% |
Class R-3
Return Before Taxes |
15.27% |
7.44% |
5.53% |
Class R-4
Return Before Taxes |
15.50% |
7.65% |
5.73% |
Class R-5
Return Before Taxes |
15.65% |
7.78% |
5.86% |
Russell
3000 Index (reflects no deduction for
fees, expenses, or taxes) |
25.96% |
15.16% |
11.48% |
SAM
Balanced Blended Index (except as noted for MSCI
EAFE Index NTR, reflects no deduction for fees, expenses, or
taxes) |
16.41% |
8.69% |
6.73% |
Russell
3000 Index(reflects no deduction for fees, expenses, or
taxes) |
25.96% |
15.16% |
11.48% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.81% |
MSCI EAFE
Index NTR (reflects withholding taxes
on foreign dividends, but no deduction for fees, expenses, or other
taxes) |
18.24% |
8.16% |
4.28% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Russell 3000 Index in order to meet
the revised definition of “broad-based securities market index.”
The SAM Balanced Blended Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with returns of indices of funds with similar investment
objectives. Performance of each component of the blended index is also shown.
The weightings for SAM Balanced Blended Index are as follows: 45% Russell 3000
Index, 40% Bloomberg U.S. Aggregate Bond Index, and 15% MSCI EAFE Index
NTR.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• Brody
Dass (since 2022), Portfolio Manager
• Todd
A. Jablonski (since 2010), Portfolio Manager
• Yesim
Tokat-Acikel (since 2023), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
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|
|
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| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A,
C, and J |
Initial
Investment |
$1,000(1) |
A,
C, and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A,
C, and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, and R-5 |
There
are no minimum initial or subsequent investment requirements for eligible
purchases. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances.
Class
C shares are subject to an 8-year automatic conversion plan whereby Class C
shares held for eight years after purchase will automatically convert to Class A
shares of the same Fund.
See
Purchase of Fund Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
SAM (STRATEGIC ASSET
MANAGEMENT) CONSERVATIVE BALANCED PORTFOLIO
Objective
The Fund seeks to provide a high level of total return (consisting
of reinvestment of income and capital appreciation), consistent with a moderate
degree of principal risk.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
You may
qualify for sales charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
|
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|
|
|
|
|
|
| |
|
Share
Class |
|
A |
C |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.50% |
None |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
1.00% |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
A |
C |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.28% |
0.28% |
0.28% |
0.28% |
0.28% |
0.28% |
0.28% |
0.28% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
1.00% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.09% |
0.14% |
0.03% |
0.03% |
0.54% |
0.33% |
0.29% |
0.27% |
Acquired
Fund Fees and Expenses |
0.45% |
0.45% |
0.45% |
0.45% |
0.45% |
0.45% |
0.45% |
0.45% |
Total
Annual Fund Operating Expenses |
1.07% |
1.87% |
0.91% |
0.76% |
1.62% |
1.31% |
1.12% |
1.00% |
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds. The Example
assumes that you invest $10,000 in the Fund for the time periods indicated and
then redeem all of your shares at the end of those periods. The Example assumes
conversion of the Class C shares to Class A shares after the eighth year. The
Example also assumes that your investment has a 5% return each year and that the
Fund’s operating expenses remain the same. Although
your actual costs may be higher or lower, based on these assumptions your costs
would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
A |
$653 |
$872 |
$1,108 |
$1,784 |
Class
C |
290 |
588 |
1,011 |
1,981 |
Class
J |
193 |
290 |
504 |
1,120 |
Institutional
Class |
78 |
243 |
422 |
942 |
Class
R-1 |
165 |
511 |
881 |
1,922 |
Class
R-3 |
133 |
415 |
718 |
1,579 |
Class
R-4 |
114 |
356 |
617 |
1,363 |
Class
R-5 |
102 |
318 |
552 |
1,225 |
With respect to Classes C and
J shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
C |
$190 |
$588 |
$1,011 |
$1,981 |
Class
J |
93 |
290 |
504 |
1,120 |
Portfolio
Turnover
The Fund and each underlying fund pays transaction costs, such as
commissions, when it buys and sells securities (or “turns over” its portfolio).
A higher portfolio turnover rate may indicate higher transaction costs. These
costs, which are not reflected in Annual Fund Operating Expenses or in the
Example, affect the Fund’s and the underlying fund's performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 25.5% of the average value of its
portfolio.
Principal Investment
Strategies
The
SAM Portfolios operate as funds of funds and invest principally in funds and
exchange-traded funds (“ETFs”) of Principal Funds, Inc. and Principal
Exchange-Traded Funds (“Underlying Funds”). Each SAM Portfolio generally
categorizes each Underlying Fund as a fixed-income, equity, or specialty fund
based on its investment profile. Each SAM Portfolio typically allocates its
assets among Underlying Funds, and within predetermined percentage ranges, as
determined by the SAM Portfolio in accordance with its outlook for the economy,
the financial markets, and the relative market valuations of the Underlying
Funds. The asset class diversification of the SAM Portfolio is designed to
moderate overall price volatility and cushion severe losses in any one
investment sector.
The
Fund generally invests:
• between
40% and 80% of its assets in fixed-income funds, and less than 40% in any one
fixed-income fund; such funds generally invest in fixed-income instruments such
as high yield securities (or “junk” bonds), securitized products, and corporate
bonds;
• between
20% and 60% of its assets in equity funds, and less than 30% in any one equity
fund; such funds generally invest in equity securities of domestic and foreign
companies (including in emerging markets), including small, medium, and large
market capitalization companies, and growth and value stock; and
• less
than 20% of its assets in specialty funds, and less than 20% in any one
specialty fund; such funds generally offer unique combinations of traditional
equity securities and fixed-income securities or use alternative investment
strategies that aim to offer diversification beyond traditional equity and
fixed-income securities and include investments in such assets as
infrastructure, commodities, currencies, and natural resources
companies.
The
Fund may temporarily exceed these percentage ranges and may alter the percentage
ranges when it deems appropriate.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Emerging
Markets Risk. Investments
in emerging markets may have more risk than those in developed markets because
the emerging markets are less developed and more illiquid. Emerging markets can
also be subject to increased social, economic, regulatory, and political
uncertainties and can be extremely volatile. The U.S. Securities and Exchange
Commission, the U.S. Department of Justice, and other U.S. authorities may be
limited in their ability to pursue bad actors in emerging markets, including
with respect to fraud.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
High
Yield Securities Risk. High
yield fixed-income securities (commonly referred to as “junk bonds”) are subject
to greater credit quality risk than higher rated fixed-income securities and
should be considered speculative.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Securitized
Products Risk. Investments
in securitized products are subject to risks similar to traditional fixed-income
securities, such as credit, interest rate, liquidity, prepayment, extension, and
default risk, as well as additional risks associated with the nature of the
assets and the servicing of those assets. Unscheduled prepayments on securitized
products may have to be reinvested at lower rates. A reduction in prepayments
may increase the effective maturities of these securities, exposing them to the
risk of decline in market value over time (extension
risk).
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect
sales charges on Class A shares; if they did, results would be
lower. The table shows for the last one, five, and ten calendar
year periods (or, if shorter, the life of the Fund), how the Fund’s average
annual total returns compare with those of one or more broad measures of market
performance.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
10.32 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(11.74) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
5.50% |
4.32% |
3.82% |
Class A
Return After Taxes on Distributions |
4.68% |
3.13% |
2.48% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
3.37% |
3.10% |
2.62% |
Class C
Return Before Taxes |
9.79% |
4.71% |
3.78% |
Class J
Return Before Taxes |
10.91% |
5.71% |
4.56% |
Institutional Class Return Before
Taxes |
11.99% |
5.86% |
4.75% |
Class R-1
Return Before Taxes |
10.98% |
4.93% |
3.83% |
Class R-3
Return Before Taxes |
11.33% |
5.27% |
4.15% |
Class R-4
Return Before Taxes |
11.59% |
5.47% |
4.35% |
Class R-5
Return Before Taxes |
11.74% |
5.61% |
4.48% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.81% |
SAM
Conservative Balanced Blended Index (except
as noted for MSCI EAFE Index NTR, reflects no deduction for fees,
expenses, or taxes) |
12.71% |
6.22% |
5.15% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.81% |
Russell
3000 Index
(reflects no deduction for
fees, expenses, or taxes) |
25.96% |
15.16% |
11.48% |
MSCI EAFE
Index NTR (reflects withholding taxes
on foreign dividends, but no deduction for fees, expenses, or other
taxes) |
18.24% |
8.16% |
4.28% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Bloomberg U.S. Aggregate Bond Index
in order to meet the revised definition of “broad-based securities market
index.” The SAM Conservative Balanced Blended
Index is included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives. Performance of each component of the blended index is
also shown. The weightings for SAM Conservative Balanced Blended Index are 60%
Bloomberg U.S. Aggregate Bond Index, 30% Russell 3000 Index, and 10% MSCI EAFE
Index NTR.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• Brody
Dass (since 2022), Portfolio Manager
• Todd
A. Jablonski (since 2010), Portfolio Manager
• Yesim
Tokat-Acikel (since 2023), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A,
C, and J |
Initial
Investment |
$1,000(1) |
A,
C, and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A,
C, and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, and R-5 |
There
are no minimum initial or subsequent investment requirements for eligible
purchases. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances.
Class
C shares are subject to an 8-year automatic conversion plan whereby Class C
shares held for eight years after purchase will automatically convert to Class A
shares of the same Fund.
See
Purchase of Fund Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
SAM (STRATEGIC ASSET
MANAGEMENT) CONSERVATIVE GROWTH PORTFOLIO
Objective
The Fund seeks to provide long-term capital
appreciation.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$50,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
A |
C |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.50% |
None |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
1.00% |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
A |
C |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.28% |
0.28% |
0.28% |
0.28% |
0.28% |
0.28% |
0.28% |
0.28% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
1.00% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.09% |
0.14% |
0.04% |
0.02% |
0.53% |
0.32% |
0.28% |
0.26% |
Acquired
Fund Fees and Expenses |
0.53% |
0.53% |
0.53% |
0.53% |
0.53% |
0.53% |
0.53% |
0.53% |
Total
Annual Fund Operating Expenses |
1.15% |
1.95% |
1.00% |
0.83% |
1.69% |
1.38% |
1.19% |
1.07% |
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example assumes conversion of the Class
C shares to Class A shares after the eighth year. The Example also assumes that
your investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
A |
$661 |
$895 |
$1,148 |
$1,871 |
Class
C |
298 |
612 |
1,052 |
2,067 |
Class
J |
202 |
318 |
552 |
1,225 |
Institutional
Class |
85 |
265 |
460 |
1,025 |
Class
R-1 |
172 |
533 |
918 |
1,998 |
Class
R-3 |
140 |
437 |
755 |
1,657 |
Class
R-4 |
121 |
378 |
654 |
1,443 |
Class
R-5 |
109 |
340 |
590 |
1,306 |
With respect to Classes C and
J shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
C |
$198 |
$612 |
$1,052 |
$2,067 |
Class
J |
102 |
318 |
552 |
1,225 |
Portfolio
Turnover
The Fund and each underlying fund pays transaction costs, such as
commissions, when it buys and sells securities (or “turns over” its portfolio).
A higher portfolio turnover rate may indicate higher transaction costs. These
costs, which are not reflected in Annual Fund Operating Expenses or in the
Example, affect the Fund’s and the underlying fund's performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 25.6% of the average value of its
portfolio.
Principal Investment
Strategies
The
SAM Portfolios operate as funds of funds and invest principally in funds and
exchange-traded funds (“ETFs”) of Principal Funds, Inc. and Principal
Exchange-Traded Funds (“Underlying Funds”). Each SAM Portfolio generally
categorizes each Underlying Fund as a fixed-income, equity, or specialty fund
based on its investment profile. Each SAM Portfolio typically allocates its
assets among Underlying Funds, and within predetermined percentage ranges, as
determined by the SAM Portfolio in accordance with its outlook for the economy,
the financial markets, and the relative market valuations of the Underlying
Funds. The asset class diversification of the SAM Portfolio is designed to
moderate overall price volatility and cushion severe losses in any one
investment sector.
The
Fund generally invests:
• between
0% and 40% of its assets in fixed-income funds, and less than 30% in any one
fixed-income fund; such funds generally invest in fixed-income instruments such
as corporate bonds;
• between
60% and 100% of its assets in equity funds, and less than 40% in any one equity
fund; such funds generally invest in equity securities of domestic and foreign
companies (including in emerging markets), including small, medium, and large
market capitalization companies, and growth and value stock; and
• less
than 20% of its assets in specialty funds, and less than 20% in any one
specialty fund; such funds generally offer unique combinations of traditional
equity securities and fixed-income securities or use alternative investment
strategies that aim to offer diversification beyond traditional equity and
fixed-income securities and include investments in such assets as
infrastructure, commodities, currencies, and natural resources
companies.
The
Fund may temporarily exceed these percentage ranges and may alter the percentage
ranges when it deems appropriate.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Emerging
Markets Risk. Investments
in emerging markets may have more risk than those in developed markets because
the emerging markets are less developed and more illiquid. Emerging markets can
also be subject to increased social, economic, regulatory, and political
uncertainties and can be extremely volatile. The U.S. Securities and Exchange
Commission, the U.S. Department of Justice, and other U.S. authorities may be
limited in their ability to pursue bad actors in emerging markets, including
with respect to fraud.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect sales charges on Class A shares; if
they did, results would be lower. The table shows for the last one, five, and
ten calendar year periods (or, if shorter, the life of the Fund), how the Fund’s
average annual total returns compare with those of one or more broad measures of
market performance.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
15.98 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(19.15) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
12.42% |
8.45% |
6.43% |
Class A
Return After Taxes on Distributions |
12.08% |
7.03% |
4.73% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
7.56% |
6.52% |
4.76% |
Class C
Return Before Taxes |
16.91% |
8.82% |
6.39% |
Class J
Return Before Taxes |
18.18% |
9.86% |
7.20% |
Institutional Class Return Before
Taxes |
19.34% |
10.03% |
7.39% |
Class R-1
Return Before Taxes |
18.29% |
9.08% |
6.46% |
Class R-3
Return Before Taxes |
18.65% |
9.43% |
6.79% |
Class R-4
Return Before Taxes |
18.87% |
9.64% |
6.99% |
Class R-5
Return Before Taxes |
19.04% |
9.76% |
7.12% |
Russell
3000 Index (reflects no deduction for
fees, expenses, or taxes) |
25.96% |
15.16% |
11.48% |
SAM
Conservative Growth Blended Index (except
as noted for MSCI EAFE Index NTR, reflects no deduction for fees,
expenses, or taxes) |
20.18% |
11.10% |
8.25% |
Russell
3000 Index (reflects no deduction for
fees, expenses, or taxes) |
25.96% |
15.16% |
11.48% |
MSCI EAFE
Index NTR (reflects withholding taxes
on foreign dividends, but no deduction for fees, expenses, or other
taxes) |
18.24% |
8.16% |
4.28% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.81% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Russell 3000 Index in order to meet
the revised definition of “broad-based securities market index.”
The SAM Conservative Growth Blended
Index is included as an additional index for the Fund as it shows how the Fund’s
performance compares with returns of indices of funds with similar investment
objectives. Performance of each component of the blended index
is also shown. The weightings for SAM Conservative Growth Blended Index are as
follows: 60% Russell 3000 Index, 20% MSCI EAFE Index NTR, and 20% Bloomberg U.S.
Aggregate Bond Index.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• Brody
Dass (since 2022), Portfolio Manager
• Todd
A. Jablonski (since 2010), Portfolio Manager
• Yesim
Tokat-Acikel (since 2023), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A,
C, and J |
Initial
Investment |
$1,000(1) |
A,
C, and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A,
C, and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, and R-5 |
There
are no minimum initial or subsequent investment requirements for eligible
purchases. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances.
Class
C shares are subject to an 8-year automatic conversion plan whereby Class C
shares held for eight years after purchase will automatically convert to Class A
shares of the same Fund.
See
Purchase of Fund Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
SAM (STRATEGIC ASSET
MANAGEMENT) FLEXIBLE INCOME PORTFOLIO
Objective
The Fund seeks to provide a high level of total return (consisting
of reinvestment of income with some capital appreciation).
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
You may
qualify for sales charge discounts if you and your family invest, or agree to
invest in the future, at least $100,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
|
A |
C |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
3.75% |
None |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
1.00% |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
| A |
C |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.28% |
0.28% |
0.28% |
0.28% |
0.28% |
0.28% |
0.28% |
0.28% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
1.00% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.08% |
0.12% |
0.02% |
0.04% |
0.53% |
0.32% |
0.28% |
0.26% |
Acquired
Fund Fees and Expenses |
0.40% |
0.40% |
0.40% |
0.40% |
0.40% |
0.40% |
0.40% |
0.40% |
Total
Annual Fund Operating Expenses |
1.01% |
1.80% |
0.85% |
0.72% |
1.56% |
1.25% |
1.06% |
0.94% |
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example assumes conversion of the Class
C shares to Class A shares after the eighth year. The Example also assumes that
your investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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|
1
year |
3
years |
5
years |
10
years |
Class
A |
$474 |
$684 |
$912 |
$1,565 |
Class
C |
283 |
566 |
975 |
1,908 |
Class
J |
187 |
271 |
471 |
1,049 |
Institutional
Class |
74 |
230 |
401 |
894 |
Class
R-1 |
159 |
493 |
850 |
1,856 |
Class
R-3 |
127 |
397 |
686 |
1,511 |
Class
R-4 |
108 |
337 |
585 |
1,294 |
Class
R-5 |
96 |
300 |
520 |
1,155 |
With respect to Classes C and
J shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
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1
year |
3
years |
5
years |
10
years |
Class
C |
$183 |
$566 |
$975 |
$1,908 |
Class
J |
87 |
271 |
471 |
1,049 |
Portfolio
Turnover
The Fund and each underlying fund pays transaction costs, such as
commissions, when it buys and sells securities (or “turns over” its portfolio).
A higher portfolio turnover rate may indicate higher transaction costs. These
costs, which are not reflected in Annual Fund Operating Expenses or in the
Example, affect the Fund’s and the underlying fund's performance. During the
most recent fiscal year, the Fund’s portfolio turnover rate was 20.8% of the average value of its
portfolio.
Principal Investment
Strategies
The
SAM Portfolios operate as funds of funds and invest principally in funds and
exchange-traded funds (“ETFs”) of Principal Funds, Inc. and Principal
Exchange-Traded Funds (“Underlying Funds”). Each SAM Portfolio generally
categorizes each Underlying Fund as a fixed-income, equity, or specialty fund
based on its investment profile. Each SAM Portfolio typically allocates its
assets among Underlying Funds, and within predetermined percentage ranges, as
determined by the SAM Portfolio in accordance with its outlook for the economy,
the financial markets, and the relative market valuations of the Underlying
Funds. The asset class diversification of the SAM Portfolio is designed to
moderate overall price volatility and cushion severe losses in any one
investment sector.
The
Fund generally invests:
• between
55% and 95% of its assets in fixed-income funds, and less than 40% in any one
fixed-income fund; such funds generally invest in fixed-income instruments such
as high yield securities (or “junk” bonds), securitized products, and corporate
bonds;
• between
5% and 45% of its assets in equity funds, and less than 30% in any one equity
fund; such funds generally invest in equity securities of domestic and foreign
companies, including small, medium, and large market capitalization companies,
and growth and value stock; and
• less
than 20% of its assets in specialty funds, and less than 20% in any one
specialty fund; such funds generally offer unique combinations of traditional
equity securities and fixed-income securities or use alternative investment
strategies that aim to offer diversification beyond traditional equity and
fixed-income securities and include investments in such assets as
infrastructure, commodities, currencies, and natural resources
companies.
The
Fund may temporarily exceed these percentage ranges and may alter the percentage
ranges when it deems appropriate.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
High
Yield Securities Risk. High
yield fixed-income securities (commonly referred to as “junk bonds”) are subject
to greater credit quality risk than higher rated fixed-income securities and
should be considered speculative.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Securitized
Products Risk. Investments
in securitized products are subject to risks similar to traditional fixed-income
securities, such as credit, interest rate, liquidity, prepayment, extension, and
default risk, as well as additional risks associated with the nature of the
assets and the servicing of those assets. Unscheduled prepayments on securitized
products may have to be reinvested at lower rates. A reduction in prepayments
may increase the effective maturities of these securities, exposing them to the
risk of decline in market value over time (extension
risk).
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect
sales charges on Class A shares; if they did, results would be
lower. The table shows for the last one, five, and ten calendar
year periods (or, if shorter, the life of the Fund), how the Fund’s average
annual total returns compare with those of one or more broad measures of market
performance.
Total Returns as of
December 31
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| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
7.69 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(8.81) |
% |
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| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
4.93% |
3.10% |
3.05% |
Class A
Return After Taxes on Distributions |
3.91% |
1.96% |
1.75% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
3.00% |
2.07% |
1.94% |
Class C
Return Before Taxes |
7.19% |
3.09% |
2.82% |
Class J
Return Before Taxes |
8.25% |
4.06% |
3.60% |
Institutional Class Return Before
Taxes |
9.40% |
4.19% |
3.76% |
Class R-1
Return Before Taxes |
8.46% |
3.31% |
2.88% |
Class R-3
Return Before Taxes |
8.75% |
3.63% |
3.20% |
Class R-4
Return Before Taxes |
9.04% |
3.84% |
3.40% |
Class R-5
Return Before Taxes |
9.08% |
3.95% |
3.52% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.81% |
SAM
Flexible Income Blended Index (except as noted for MSCI
EAFE Index NTR, reflects no deduction for fees, expenses, or
taxes) |
10.07% |
4.41% |
4.01% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.81% |
Russell
3000 Index
(reflects no deduction for
fees, expenses, or taxes) |
25.96% |
15.16% |
11.48% |
MSCI EAFE
Index NTR (reflects withholding taxes
on foreign dividends, but no deduction for fees, expenses, or other
taxes) |
18.24% |
8.16% |
4.28% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Bloomberg U.S. Aggregate Bond Index
in order to meet the revised definition of “broad-based securities market
index.” The SAM Flexible Income Blended Index
is included as an additional index for the Fund as it shows how the Fund’s
performance compares with returns of indices of funds with similar investment
objectives. Performance of each component of the blended index
is also shown. The weightings for SAM Flexible Income Blended Index are as
follows: 75% Bloomberg U.S. Aggregate Bond Index, 20% Russell 3000 Index, and 5%
MSCI EAFE Index NTR.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• Brody
Dass (since 2022), Portfolio Manager
• Todd
A. Jablonski (since 2010), Portfolio Manager
• Yesim
Tokat-Acikel (since 2023), Portfolio Manager
Purchase
and Sale of Fund Shares
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Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A,
C, and J |
Initial
Investment |
$1,000(1) |
A,
C, and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A,
C, and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, and R-5 |
There
are no minimum initial or subsequent investment requirements for eligible
purchases. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances.
Class
C shares are subject to an 8-year automatic conversion plan whereby Class C
shares held for eight years after purchase will automatically convert to Class A
shares of the same Fund.
See
Purchase of Fund Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
SAM (STRATEGIC ASSET
MANAGEMENT) STRATEGIC GROWTH PORTFOLIO
Objective
The Fund seeks to provide long-term capital
appreciation.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
You may
qualify for sales charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
|
A |
C |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.50% |
None |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
1.00% |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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|
Share
Class |
|
A |
C |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees |
0.28% |
0.28% |
0.28% |
0.28% |
0.28% |
0.28% |
0.28% |
0.28% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
1.00% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.10% |
0.17% |
0.06% |
0.02% |
0.53% |
0.32% |
0.28% |
0.26% |
Acquired
Fund Fees and Expenses |
0.56% |
0.56% |
0.56% |
0.56% |
0.56% |
0.56% |
0.56% |
0.56% |
Total
Annual Fund Operating Expenses |
1.19% |
2.01% |
1.05% |
0.86% |
1.72% |
1.41% |
1.22% |
1.10% |
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example assumes conversion of the Class
C shares to Class A shares after the eighth year. The Example also assumes that
your investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
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|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
A |
$665 |
$907 |
$1,168 |
$1,914 |
Class
C |
304 |
630 |
1,083 |
2,126 |
Class
J |
207 |
334 |
579 |
1,283 |
Institutional
Class |
88 |
274 |
477 |
1,061 |
Class
R-1 |
175 |
542 |
933 |
2,030 |
Class
R-3 |
144 |
446 |
771 |
1,691 |
Class
R-4 |
124 |
387 |
670 |
1,477 |
Class
R-5 |
112 |
350 |
606 |
1,340 |
With respect to Classes C and
J shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
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|
|
|
|
|
|
|
|
|
|
|
| |
| 1
year |
3
years |
5
years |
10
years |
Class
C |
$204 |
$630 |
$1,083 |
$2,126 |
Class
J |
107 |
334 |
579 |
1,283 |
Portfolio
Turnover
The
Fund and each underlying fund pays transaction costs, such as commissions, when
it buys and sells securities (or “turns over” its portfolio). A higher portfolio
turnover rate may indicate higher transaction costs. These costs, which are not
reflected in Annual Fund Operating Expenses or in the Example, affect the Fund’s
and the underlying fund's performance. During the most recent fiscal year, the
Fund’s portfolio turnover rate was 27.2% of the average value of its
portfolio.
Principal Investment
Strategies
The
SAM Portfolios operate as funds of funds and invest principally in funds and
exchange-traded funds (“ETFs”) of Principal Funds, Inc. and Principal
Exchange-Traded Funds (“Underlying Funds”). Each SAM Portfolio generally
categorizes each Underlying Fund as a fixed-income, equity, or specialty fund
based on its investment profile. Each SAM Portfolio typically allocates its
assets among Underlying Funds, and within predetermined percentage ranges, as
determined by the SAM Portfolio in accordance with its outlook for the economy,
the financial markets, and the relative market valuations of the Underlying
Funds. The asset class diversification of the SAM Portfolio is designed to
moderate overall price volatility and cushion severe losses in any one
investment sector.
The
Fund generally invests:
• between
75% and 100% of its assets in equity funds, and less than 50% in any one equity
fund; such funds generally invest in equity securities of domestic and foreign
companies (including in emerging markets), including small, medium, and large
market capitalization companies, and growth and value stock; and
• less
than 20% of its assets in specialty funds, and less than 20% in any one
specialty fund; such funds generally offer unique combinations of traditional
equity securities or use alternative investment strategies that aim to offer
diversification beyond traditional equity securities and include investments in
such assets as infrastructure, commodities, currencies, and natural resources
companies.
The
Fund may temporarily exceed these percentage ranges and may alter the percentage
ranges when it deems appropriate.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of significance.
Principal
Risks of Investing in a Fund of Funds
Fund
of Funds Risk. Fund shareholders bear indirectly their proportionate share of the
expenses of other investment companies (for example, other mutual funds or
exchange-traded funds) in which the Fund invests (“underlying funds”). The
Fund’s selection and weighting of asset classes and allocation of investments in
underlying funds may cause it to underperform other funds with a similar
investment objective. The Fund’s performance and risks correspond directly to
the performance and risks of the underlying funds in which it invests,
proportionately in accordance with the weightings of such investments, and there
is no assurance that the underlying funds will achieve their investment
objectives. Management of the Fund entails potential conflicts of interest: the
Fund invests in affiliated underlying funds; and PGI and its affiliates may earn
different fees from different underlying funds and may have an incentive to
allocate more Fund assets to underlying funds from which they receive higher
fees.
Principal
Risks due to the Fund’s Investments in Underlying
Funds
Emerging
Markets Risk. Investments
in emerging markets may have more risk than those in developed markets because
the emerging markets are less developed and more illiquid. Emerging markets can
also be subject to increased social, economic, regulatory, and political
uncertainties and can be extremely volatile. The U.S. Securities and Exchange
Commission, the U.S. Department of Justice, and other U.S. authorities may be
limited in their ability to pursue bad actors in emerging markets, including
with respect to fraud.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Foreign
Currency Risk. Risks
of investing in securities denominated in, or that trade in, foreign (non-U.S.)
currencies include changes in foreign exchange rates and foreign exchange
restrictions.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect sales charges on Class A shares; if
they did, results would be lower. The table shows for the last one, five, and
ten calendar year periods (or, if shorter, the life of the Fund), how the Fund’s
average annual total returns compare with those of one or more broad measures of
market performance.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
19.17 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(22.15) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
14.77% |
10.12% |
7.21% |
Class A
Return After Taxes on Distributions |
14.47% |
8.81% |
5.35% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
8.98% |
7.91% |
5.32% |
Class C
Return Before Taxes |
19.45% |
10.49% |
7.16% |
Class J
Return Before Taxes |
20.59% |
11.55% |
7.97% |
Institutional Class Return Before
Taxes |
21.82% |
11.73% |
8.18% |
Class R-1
Return Before Taxes |
20.82% |
10.71% |
7.22% |
Class R-3
Return Before Taxes |
21.14% |
11.12% |
7.58% |
Class R-4
Return Before Taxes |
21.45% |
11.34% |
7.79% |
Class R-5
Return Before Taxes |
21.49% |
11.46% |
7.92% |
Russell
3000 Index
(reflects no deduction for
fees, expenses, or taxes) |
25.96% |
15.16% |
11.48% |
SAM
Strategic Growth Blended Index (except
as noted for MSCI EAFE Index NTR, reflects no deduction for fees,
expenses, or taxes) |
22.96% |
12.77% |
9.25% |
Russell
3000 Index
(reflects no deduction for
fees, expenses, or taxes) |
25.96% |
15.16% |
11.48% |
MSCI EAFE
Index NTR (reflects withholding taxes
on foreign dividends, but no deduction for fees, expenses, or other
taxes) |
18.24% |
8.16% |
4.28% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.81% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Russell 3000 Index in order to meet
the revised definition of “broad-based securities market index.”
The SAM Strategic Growth Blended
Index is included as an additional index for the Fund as it shows how the Fund’s
performance compares with returns of indices of funds with similar investment
objectives. Performance of each component of the blended index
is also shown. The weightings for SAM Strategic Growth Blended Index are as
follows: 70% Russell 3000 Index, 25% MSCI EAFE Index NTR, and 5% Bloomberg U.S.
Aggregate Bond Index.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• Brody
Dass (since 2022), Portfolio Manager
• Todd
A. Jablonski (since 2010), Portfolio Manager
• Yesim
Tokat-Acikel (since 2023), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
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| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A,
C, and J |
Initial
Investment |
$1,000(1) |
A,
C, and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A,
C, and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, and R-5 |
There
are no minimum initial or subsequent investment requirements for eligible
purchases. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances.
Class
C shares are subject to an 8-year automatic conversion plan whereby Class C
shares held for eight years after purchase will automatically convert to Class A
shares of the same Fund.
See
Purchase of Fund Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
SHORT-TERM INCOME
FUND
Objective
The Fund seeks to provide as high a level of current income as is
consistent with prudent investment management and stability of
principal.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$100,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
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|
|
|
|
|
| |
|
Share
Class |
|
A |
C |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
2.25% |
None |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
1.00% |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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|
|
|
|
|
| |
|
Share
Class |
|
A |
C |
J |
Inst.
|
R-1 |
R-3 |
R-4 |
R-5 |
Management
Fees (1) |
0.37% |
0.37% |
0.37% |
0.37% |
0.37% |
0.37% |
0.37% |
0.37% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
1.00% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
Other
Expenses |
0.12% |
0.25% |
0.10% |
0.04% |
0.53% |
0.32% |
0.28% |
0.26% |
Total
Annual Fund Operating Expenses |
0.64% |
1.62% |
0.62% |
0.41% |
1.25% |
0.94% |
0.75% |
0.63% |
(1) Fees
have been restated to reflect current
fees.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example assumes conversion of the Class
C shares to Class A shares after the eighth year. The Example also assumes that
your investment has a 5% return each year and that the Fund’s operating expenses
remain the same. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
A |
$289 |
$425 |
$574 |
$1,005 |
Class
C |
265 |
511 |
881 |
1,659 |
Class
J |
163 |
199 |
346 |
774 |
Institutional
Class |
42 |
132 |
230 |
518 |
Class
R-1 |
127 |
397 |
686 |
1,511 |
Class
R-3 |
96 |
300 |
520 |
1,155 |
Class
R-4 |
77 |
240 |
417 |
930 |
Class
R-5 |
64 |
202 |
351 |
786
|
With respect to Classes C and
J shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
C |
$165 |
$511 |
$881 |
$1,659 |
Class
J |
63 |
199 |
346 |
774
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
35.4% of the average
value of its portfolio.
Principal Investment
Strategies
The
Fund seeks to achieve its investment objective by investing in a broad range of
high-quality, fixed-income securities. The Fund invests
primarily in high-quality short-term bonds and other fixed-income securities
that, at the time of purchase, are rated BBB- or higher by S&P Global
Ratings (“S&P Global”) or Baa3 or higher by Moody’s Investors Service, Inc.
(“Moody’s”). If the security has been rated by only one of the
rating agencies, that rating will determine the security’s rating; if the
security is rated differently by the rating agencies, the highest rating will be
used; and if the security has not been rated by either of the rating agencies,
those selecting such investments will determine the security’s quality. The
Fund’s investments also include corporate securities, government securities,
mortgage-backed and asset-backed securities (securitized products), and foreign
securities.
Under
normal circumstances, the Fund maintains an effective maturity of five years or
less and an average portfolio duration that is within ±30% of the duration of
the Bloomberg Credit 1-3 Year Index, which as of January 31, 2024 was 1.78
years.
The
Fund invests in derivatives, including Treasury futures, to manage the
fixed-income exposure. A derivative is a financial arrangement, the value of
which is derived from, or based on, a traditional security, asset, or market
index.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of
significance.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Futures.
Futures
contracts involve specific risks, including: the imperfect correlation between
the change in market value of the instruments held by the Fund and the price of
the futures contract; possible lack of a liquid secondary market for a futures
contract and the resulting inability to close a futures contract when desired;
counterparty risk; and if the Fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Foreign
Securities Risk. The
risks of foreign securities include loss of value as a result of: political or
economic instability; nationalization, expropriation, or confiscatory taxation;
settlement delays; and limited government regulation (including less stringent
reporting, accounting, and disclosure standards than are required of U.S.
companies).
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Real
Estate Securities Risk. Investing
in real estate securities subjects the fund to the risks associated with the
real estate market (which are similar to the risks associated with direct
ownership in real estate), including declines in real estate values, loss due to
casualty or condemnation, property taxes, interest rate changes, increased
expenses, cash flow of underlying real estate assets, regulatory changes
(including zoning, land use, and rents), and environmental problems, as well as
to the risks related to the management skill and creditworthiness of the
issuer.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Securitized
Products Risk. Investments
in securitized products are subject to risks similar to traditional fixed-income
securities, such as credit, interest rate, liquidity, prepayment, extension, and
default risk, as well as additional risks associated with the nature of the
assets and the servicing of those assets. Unscheduled prepayments on securitized
products may have to be reinvested at lower rates. A reduction in prepayments
may increase the effective maturities of these securities, exposing them to the
risk of decline in market value over time (extension
risk).
U.S.
Government Securities Risk. Yields
available from U.S. government securities are generally lower than yields from
many other fixed-income securities. The value of U.S. government securities may
be adversely impacted by changes in interest rates, changes in the credit rating
of the U.S. government, or a default by the U.S.
government.
U.S.
Government-Sponsored Securities Risk. Securities
issued by U.S. government-sponsored enterprises such as the Federal Home Loan
Mortgage Corporation, the Federal National Mortgage Association, and the Federal
Home Loan Banks are not issued or guaranteed by the U.S.
government.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect sales charges on Class A shares; if
they did, results would be lower. The table shows for the last one, five, and
ten calendar year periods (or, if shorter, the life of the Fund), how the Fund’s
average annual total returns compare with those of one or more broad measures of
market performance.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest
return for a quarter during the period of the bar chart
above: |
Q2
2020 |
3.37 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2022 |
(2.48) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
3.33% |
1.30% |
1.33% |
Class A
Return After Taxes on Distributions |
2.10% |
0.48% |
0.56% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
1.95% |
0.66% |
0.68% |
Class C
Return Before Taxes |
3.70% |
0.83% |
0.83% |
Class J
Return Before Taxes |
4.80% |
1.80% |
1.56% |
Institutional Class Return Before
Taxes |
5.99% |
2.01% |
1.80% |
Class R-1
Return Before Taxes |
5.11% |
1.13% |
0.93% |
Class R-3
Return Before Taxes |
5.43% |
1.46% |
1.25% |
Class R-4
Return Before Taxes |
5.63% |
1.64% |
1.43% |
Class R-5
Return Before Taxes |
5.84% |
1.77% |
1.57% |
Bloomberg
U.S. Aggregate Bond Index (reflects no deduction for
fees, expenses, or taxes) |
5.53% |
1.10% |
1.81% |
Bloomberg
Credit 1-3 Year Index (reflects no deduction for
fees, expenses, or taxes) |
5.28% |
2.03% |
1.75% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Bloomberg U.S. Aggregate Bond Index
in order to meet the revised definition of “broad-based securities market
index.” The Bloomberg Credit 1-3 Year Index
is included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• John
R. Friedl (since 2010), Portfolio Manager
•Michael
Goosay (since 2023), Portfolio Manager
• Scott
J. Peterson (since 2010), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A,
C, and J |
Initial
Investment |
$1,000(1) |
A,
C, and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A,
C, and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, and R-5 |
There
are no minimum initial or subsequent investment requirements for eligible
purchases. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances.
Class
C shares are subject to an 8-year automatic conversion plan whereby Class C
shares held for eight years after purchase will automatically convert to Class A
shares of the same Fund.
See
Purchase of Fund Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
SMALLCAP
FUND
Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
You may
qualify for sales charge discounts if you and your family invest, or agree to
invest in the future, at least $50,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
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A |
J |
Inst.
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R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
5.50% |
None |
None |
None |
None |
None |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
None |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
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A |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Management
Fees |
0.74% |
0.74% |
0.74% |
0.74% |
0.74% |
0.74% |
0.74% |
0.74% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
N/A |
Other
Expenses |
0.20% |
0.15% |
0.16% |
0.53% |
0.32% |
0.28% |
0.26% |
0.03% |
Total
Annual Fund Operating Expenses |
1.19% |
1.04% |
0.90% |
1.62% |
1.31% |
1.12% |
1.00% |
0.77% |
Expense
Reimbursement (1) |
N/A |
N/A |
(0.05)% |
N/A |
N/A |
N/A |
N/A |
(0.01)% |
Total
Annual Fund Operating Expenses after Expense Reimbursement |
1.19% |
1.04% |
0.85% |
1.62% |
1.31% |
1.12% |
1.00% |
0.76% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.85% for Institutional Class shares. In addition, for Class R-6, the
expense limit will maintain "Other Expenses" (expressed as a percent of average
net assets on an annualized basis) not to exceed 0.02%, (excluding interest
expense, expenses related to fund investments, acquired fund fees and expenses,
and tax reclaim recovery expenses and other extraordinary expenses). It is
expected that the expense limits will continue through the period ending
February 28, 2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limits prior to the end
of the period. Subject to applicable expense limits, the Fund may reimburse PGI
for expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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1
year |
3
years |
5
years |
10
years |
Class
A |
$665 |
$907 |
$1,168 |
$1,914 |
Class
J |
206 |
331 |
574 |
1,271 |
Institutional
Class |
87 |
282 |
494 |
1,103 |
Class
R-1 |
165 |
511 |
881 |
1,922 |
Class
R-3 |
133 |
415 |
718 |
1,579 |
Class
R-4 |
114 |
356 |
617 |
1,363 |
Class
R-5 |
102 |
318 |
552 |
1,225 |
Class
R-6 |
78 |
245 |
427 |
953
|
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
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1
year |
3
years |
5
years |
10
years |
Class
J |
$106 |
$331 |
$574 |
$1,271 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
28.7% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in equity securities of companies with small
market capitalizations at the time of purchase. For this Fund,
companies with small market capitalizations are those with market
capitalizations within the range of companies comprising the Russell
2000®
Index (as of January 31, 2024, this range was between approximately $13.0
million and $27.9 billion). Those managing the Fund’s investments seek to invest
in securities of companies that they believe have improving and sustainable
business fundamentals, rising investor expectations, and attractive relative
valuations.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of
significance.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect
sales charges on Class A shares; if they did, results would be
lower. The table shows for the last one, five, and ten calendar
year periods (or, if shorter, the life of the Fund), how the Fund’s average
annual total returns compare with those of one or more broad measures of market
performance.
For
periods prior to the inception date of Class R-6 shares (November 22, 2016), the
performance shown in the table for Class R-6 shares is that of the Fund’s Class
R-3 shares, adjusted to reflect the fees and expenses of Class R-6 shares.
However, where the adjustment for fees and expenses results in performance for
Class R-6 shares that is higher than the historical performance of the Class R-3
shares, the historical performance of the Class R-3 shares is used. These
adjustments result in performance for such periods that is no higher than the
historical performance of the Class R-3 shares.
Total Returns as of
December 31
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Highest return for a quarter during
the period of the bar chart above: |
Q2
2020 |
28.39 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(30.54) |
% |
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Average
Annual Total Returns
For
the periods ended December 31, 2023 |
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1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
9.01% |
9.91% |
6.90% |
Class A
Return After Taxes on Distributions |
8.24% |
8.92% |
5.32% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
5.86% |
7.77% |
5.10% |
Class J
Return Before Taxes |
14.57% |
11.33% |
7.68% |
Institutional Class Return Before
Taxes |
15.75% |
11.51% |
7.90% |
Class R-1
Return Before Taxes |
14.87% |
10.66% |
7.04% |
Class R-3
Return Before Taxes |
15.17% |
11.00% |
7.37% |
Class R-4
Return Before Taxes |
15.41% |
11.21% |
7.58% |
Class R-5
Return Before Taxes |
15.55% |
11.34% |
7.71% |
Class R-6
Return Before Taxes |
15.84% |
11.62% |
7.79% |
Russell
3000 Index (reflects no deduction for
fees, expenses, or taxes) |
25.96% |
15.16% |
11.48% |
Russell
2000 Index (reflects no deduction for
fees, expenses, or taxes) |
16.93% |
9.97% |
7.16% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Russell 3000 Index in order to meet
the revised definition of “broad-based securities market index.”
The Russell 2000 Index is included as
an additional index for the Fund as it shows how the Fund’s performance compares
with the returns of an index of funds with similar investment
objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• Phil
Nordhus (since 2006), Portfolio Manager
• Brian
W. Pattinson (since 2011), Portfolio Manager
Purchase
and Sale of Fund Shares
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Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A
and J |
Initial
Investment |
$1,000(1) |
A
and J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A
and J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, R-5, and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchases. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances.
Effective
as of the close of the New York Stock Exchange on March 24, 2023, Class C shares
will no longer be available for purchase except in limited circumstances.
See
Purchase of Fund Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
SMALLCAP GROWTH FUND
I
Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
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Share
Class |
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J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Maximum
Deferred Sales Charge (Load)
(as
a percentage of the offering price or NAV when Sales Load is paid,
whichever is less) |
1.00% |
None |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
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Share
Class |
|
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Management
Fees |
0.85% |
0.85% |
0.85% |
0.85% |
0.85% |
0.85% |
0.85% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A
|
N/A |
Other
Expenses |
0.18% |
0.14% |
0.54% |
0.33% |
0.29% |
0.27% |
0.01% |
Acquired
Fund Fees and Expenses |
0.03% |
0.03% |
0.03% |
0.03% |
0.03% |
0.03% |
0.03% |
Total
Annual Fund Operating Expenses |
1.21% |
1.02% |
1.77% |
1.46% |
1.27% |
1.15% |
0.89% |
Fee
Waiver and Expense Reimbursement (1)(2) |
(0.02)% |
(0.02)% |
(0.02)% |
(0.02)% |
(0.02)% |
(0.02)% |
(0.02)% |
Total
Annual Fund Operating Expenses after Fee Waiver and Expense
Reimbursement |
1.19% |
1.00% |
1.75% |
1.44% |
1.25% |
1.13% |
0.87% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to waive a portion of the Fund's management fees through the period ending
February 28,
2025. The fee waiver will reduce the Fund's management fees by
0.02% (expressed as a percent of average net assets on an annualized basis). It
is expected that the fee waiver will continue through the period disclosed;
however, Principal Funds, Inc. and PGI, the parties to the agreement may
mutually agree to terminate the fee waiver prior to the end of the
period.
(2) Principal Global
Investors, LLC ("PGI"), the investment advisor, has contractually agreed to
limit the Fund’s expenses by paying, if necessary, expenses normally payable by
the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain "Other Expenses" (expressed as a percent of
average net assets on an annualized basis) not to exceed 0.01% for Class R-6
shares. It is expected that the expense limit will continue through the period
ending February 28, 2025; however, Principal Funds, Inc. and PGI, the parties to
the agreement, may mutually agree to terminate the expense limit prior to the
end of the period. Subject to applicable expense limits, the Fund may reimburse
PGI for expenses incurred during the current fiscal
year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
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year |
3
years |
5
years |
10
years |
Class
J |
$221 |
$382 |
$663 |
$1,464 |
Institutional
Class |
102 |
323 |
561 |
1,246 |
Class
R-1 |
178 |
555 |
957 |
2,082 |
Class
R-3 |
147 |
460 |
796 |
1,745 |
Class
R-4 |
127 |
401 |
695 |
1,532 |
Class
R-5 |
115 |
363 |
631 |
1,396 |
Class
R-6 |
89 |
282 |
491 |
1,094 |
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
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| 1
year |
3
years |
5
years |
10
years |
Class
J |
$121 |
$382 |
$663 |
$1,464 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
50.3% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in equity securities of companies with small
market capitalizations at the time of purchase. For this Fund,
companies with small market capitalizations are those with market
capitalizations equal to or smaller than the greater of: 1) $6.0 billion or 2)
the highest market capitalization of the companies comprising the Russell
2000®
Growth Index (as of January 31, 2024, this range was between approximately
$13.0 million and $27.9 billion). The Fund invests in growth equity securities,
an investment strategy that emphasizes buying equity securities of companies
whose potential for growth of capital and earnings is expected to be above
average.
The
Fund is primarily actively managed by the sub-advisors. In addition, Principal
Global Investors, LLC may invest up to 30% of the Fund’s assets using an index
sampling strategy designed to match the performance of the Russell
2000®
Growth Index.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of
significance.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Growth
Style Risk.
Growth investing entails the risk that if growth companies do not increase their
earnings at a rate expected by investors, the market price of their stock may
decline significantly, even if earnings show an absolute increase. Growth
company stocks also typically lack the dividend yield that can lessen price
declines in market downturns.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger
companies.
Passive
Strategy Risk. A
portion of the Fund seeks to match the performance of a specified index.
However, the correlation between the performance of this portion of the Fund and
index performance may be affected by many factors, such as Fund expenses, the
timing of cash flows into and out of the Fund, changes in securities markets,
and changes in the composition of the
index.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
For
periods prior to the inception date of Class R-6 shares (November 25, 2014), the
performance shown in the table for Class R-6 shares is that of the Fund’s
Institutional Class shares, adjusted to reflect the fees and expenses of Class
R-6 shares. These adjustments result in performance for such periods that is no
higher than the historical performance of the Institutional Class
shares.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest return for a quarter during
the period of the bar chart above: |
Q2
2020 |
33.84 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(22.08) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Institutional Class Return Before
Taxes |
16.43% |
11.11% |
8.55% |
Institutional Class Return After Taxes
on Distributions |
16.43% |
9.60% |
6.39% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
9.73% |
8.73% |
6.33% |
Class J
Return Before Taxes |
15.34% |
10.90% |
8.25% |
Class R-1
Return Before Taxes |
15.60% |
10.24% |
7.66% |
Class R-3
Return Before Taxes |
15.92% |
10.56% |
8.00% |
Class R-4
Return Before Taxes |
16.20% |
10.79% |
8.21% |
Class R-5
Return Before Taxes |
16.34% |
10.91% |
8.33% |
Class R-6
Return Before Taxes |
16.65% |
11.20% |
8.59% |
Russell
3000 Index (reflects no deduction for
fees, expenses, or taxes) |
25.96% |
15.16% |
11.48% |
Russell
2000 Growth Index (reflects no deduction for
fees, expenses, or taxes) |
18.66% |
9.22% |
7.16% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Russell 3000 Index in order to meet
the revised definition of “broad-based securities market index.”
The Russell 2000 Growth Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2009), Portfolio Manager
• Randy
L. Welch (since 2009), Portfolio Manager
Sub-Advisors
AllianceBernstein
L.P.
Brown
Advisory, LLC
Emerald
Advisers, LLC
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, R-5, and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchases. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
SMALLCAP S&P 600
INDEX FUND
Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
|
|
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|
|
|
|
|
|
|
|
|
|
|
|
|
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| |
|
Share
Class |
|
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or
NAV when Sales Load is paid, whichever is less) |
1.00% |
None |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Management
Fees |
0.15% |
0.15% |
0.15% |
0.15% |
0.15% |
0.15% |
0.15% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
N/A |
Other
Expenses |
0.14% |
0.10% |
0.54% |
0.33% |
0.29% |
0.27% |
0.02% |
Total
Annual Fund Operating Expenses |
0.44% |
0.25% |
1.04% |
0.73% |
0.54% |
0.42% |
0.17% |
Expense
Reimbursement
(1) |
N/A |
(0.04)% |
N/A |
N/A |
N/A |
N/A |
N/A |
Total
Annual Fund Operating Expenses after Expense Reimbursement |
0.44% |
0.21% |
1.04% |
0.73% |
0.54% |
0.42% |
0.17% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.21% for Institutional Class shares. It is expected that the expense
limit will continue through the period ending February 28, 2025; however,
Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree
to terminate the expense limit prior to the end of the period. Subject to
applicable expense limits, the Fund may reimburse PGI for expenses incurred
during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$145 |
$141 |
$246 |
$555 |
Institutional
Class |
22 |
76 |
137 |
314 |
Class
R-1 |
106 |
331 |
574 |
1,271 |
Class
R-3 |
75 |
233 |
406 |
906 |
Class
R-4 |
55 |
173 |
302 |
677 |
Class
R-5 |
43 |
135 |
235 |
530 |
Class
R-6 |
17 |
55 |
96 |
217
|
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$45 |
$141 |
$246 |
$555
|
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
27.5% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in equity securities of companies that
compose the Standard & Poor’s (“S&P”) SmallCap 600 Index (the “Index”)
at the time of purchase. The Index is designed to represent U.S.
equities with risk/return characteristics of the small cap universe. As of
January 31, 2024, the market capitalization range of the companies
comprising the Index was between approximately $219.9 million and $7.8 billion.
Each component stock of the Index is weighted in proportion to its total market
value. The Index is rebalanced quarterly.
The
Fund employs a passive investment approach designed to attempt to track the
performance of the Index. In seeking its objective, the Fund typically employs a
replication strategy, which involves investing in all the securities that make
up the Index, in the same proportions as the Index.
The
Fund uses derivative strategies and invests in exchange-traded funds (“ETFs”). A
derivative is a financial arrangement, the value of which is derived from, or
based on, a traditional security, asset, or market index. Specifically, the Fund
invests in index futures and equity ETFs on a daily basis to gain exposure to
the Index in an effort to minimize tracking error relative to the
benchmark.
The
Fund will not concentrate (i.e., invest more than 25% of its assets) its
investments in a particular industry except to the extent the Index is so
concentrated. As of January 31, 2024, the Index was not concentrated in any
industry.
Note:
“Standard & Poor’s SmallCap 600” and “S&P SmallCap 600” are trademarks
of S&P Global and have been licensed by Principal. The Fund is not
sponsored, endorsed, sold, or promoted by S&P Global, and S&P Global
makes no representation regarding the advisability of investing in the
Fund.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of
significance.
Derivatives
Risk. Derivatives
may not move in the direction anticipated by the portfolio manager. Transactions
in derivatives may increase volatility, cause the liquidation of portfolio
positions when not advantageous to do so, and result in disproportionate losses
that may be substantially greater than a fund’s initial investment.
•Futures.
Futures
contracts involve specific risks, including: the imperfect correlation between
the change in market value of the instruments held by the Fund and the price of
the futures contract; possible lack of a liquid secondary market for a futures
contract and the resulting inability to close a futures contract when desired;
counterparty risk; and if the Fund has insufficient cash, it may have to sell
securities from its portfolio to meet daily variation margin
requirements.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger
companies.
Index
Fund Risk. Index
funds use a passive investment approach and generally do not attempt to manage
market volatility, use defensive strategies, or reduce the effect of any
long-term periods of poor investment performance. Therefore, the Fund may hold
securities that present risks that an investment advisor researching individual
securities might seek to avoid. An index fund has operating and other expenses
while an index does not. As a result, over time, index funds tend to
underperform the index. The correlation between fund performance and index
performance may also be affected by the type of passive investment approach used
by a fund (sampling or replication), changes in securities markets, changes in
the composition of the index, and the timing of purchases and sales of fund
shares. Errors or delays in compiling or rebalancing the Index may impact the
performance of the Fund and increase transaction
costs.
Industry
Concentration Risk. A fund that concentrates investments in a particular industry or
group of industries has greater exposure than other funds to market, economic,
and other factors affecting that industry or group of
industries.
Investment
Company Securities Risk. A
fund that invests in another investment company (for example, another fund or an
exchange-traded fund (or ETF)) is subject to the risks associated with direct
ownership of the securities in which such investment company invests. Fund
shareholders indirectly bear their proportionate share of the expenses of each
such investment company.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
For
periods prior to the inception date of Class R-6 shares (November 22, 2016), the
performance shown in the table for Class R-6 shares is that of the Fund’s Class
R-3 shares, adjusted to reflect the fees and expenses of Class R-6 shares.
However, where the adjustment for fees and expenses results in performance for
Class R-6 shares that is higher than the historical performance of the Class R-3
shares, the historical performance of the Class R-3 shares is used. These
adjustments result in performance for such periods that is no higher than the
historical performance of the Class R-3 shares.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest return for a quarter during
the period of the bar chart above: |
Q4
2020 |
31.18 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(32.65) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Institutional Class Return Before
Taxes |
15.80% |
10.76% |
8.39% |
Institutional Class Return After Taxes
on Distributions |
14.57% |
8.97% |
6.38% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
10.14% |
8.31% |
6.27% |
Class J
Return Before Taxes |
14.59% |
10.55% |
8.16% |
Class R-1
Return Before Taxes |
14.87% |
9.86% |
7.51% |
Class R-3
Return Before Taxes |
15.21% |
10.20% |
7.84% |
Class R-4
Return Before Taxes |
15.42% |
10.41% |
8.04% |
Class R-5
Return Before Taxes |
15.58% |
10.55% |
8.18% |
Class R-6
Return Before Taxes |
15.86% |
10.82% |
8.27% |
S&P
1500 TR (reflects no deduction for
fees, expenses, or taxes) |
25.47% |
15.39% |
11.76% |
S&P
SmallCap 600 Index (reflects no deduction for
fees, expenses, or taxes) |
16.05% |
11.03% |
8.66% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the S&P 1500 TR in order to meet
the revised definition of “broad-based securities market index.”
The S&P SmallCap 600 Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• Tyler
O’Donnell (since 2023), Portfolio Manager
• Aaron
J. Siebel (since 2018), Portfolio Manager
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, R-5, and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchases. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
SMALLCAP VALUE
FUND II
Objective
The Fund seeks long-term growth of capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples below.
If
you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial
intermediary.
Shareholder Fees
(fees paid directly from your investment)
|
|
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|
|
|
|
|
|
|
|
|
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|
|
|
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| |
|
Share
Class |
| J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
None |
None |
None |
None |
None |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
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|
|
|
| |
|
Share
Class |
| J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
Management
Fees |
0.94% |
0.94% |
0.94% |
0.94% |
0.94% |
0.94% |
0.94% |
Distribution
and/or Service (12b-1) Fees |
0.15% |
N/A |
0.35% |
0.25% |
0.10% |
N/A |
N/A |
Other
Expenses |
0.26% |
0.16% |
0.54% |
0.33% |
0.29% |
0.27% |
0.01% |
Acquired
Fund Fees and Expenses |
0.01% |
0.01% |
0.01% |
0.01% |
0.01% |
0.01% |
0.01% |
Total
Annual Fund Operating Expenses |
1.36% |
1.11% |
1.84% |
1.53% |
1.34% |
1.22% |
0.96% |
Fee
Waiver and Expense Reimbursement (1)(2) |
(0.02)% |
(0.14)% |
(0.02)% |
(0.02)% |
(0.02)% |
(0.02)% |
(0.02)% |
Total
Annual Fund Operating Expenses after Fee Waiver and Expense
Reimbursement |
1.34% |
0.97% |
1.82% |
1.51% |
1.32% |
1.20% |
0.94% |
(1) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to waive a portion of the Fund's management fees through the period ending
February 28,
2025. The fee waiver will reduce the Fund's management fees by
0.02% (expressed as a percent of average net assets on an annualized basis). It
is expected that the fee waiver will continue through the period disclosed;
however, Principal Funds, Inc. and PGI, the parties to the agreement may
mutually agree to terminate the fee waiver prior to the end of the
period.
(2) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.96% for Institutional Class shares. It is expected that the expense
limit will continue through the period ending February 28, 2025; however,
Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree
to terminate the expense limit prior to the end of the period. Subject to
applicable expense limits, the Fund may reimburse PGI for expenses incurred
during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example also assumes that your
investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| 1
year |
3
years |
5
years |
10
years |
Class
J |
$236 |
$429 |
$743 |
$1,633 |
Institutional
Class |
99 |
339 |
598 |
1,339 |
Class
R-1 |
185 |
577 |
994 |
2,157 |
Class
R-3 |
154 |
481 |
832 |
1,822 |
Class
R-4 |
134 |
423 |
732 |
1,611 |
Class
R-5 |
122 |
385 |
668 |
1,476 |
Class
R-6 |
96 |
304 |
529 |
1,176 |
With respect to Class J
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
J |
$136 |
$429 |
$743 |
$1,633 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
65.2% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in equity securities of companies with small
market capitalizations at the time of purchase. For this Fund,
companies with small market capitalizations are those with market
capitalizations of one or both of the following: $3.5 billion or less, or within
the range of companies composing the Russell 2000®
Value Index (as of January 31, 2024, this range was between approximately
$13.0 million and $8.1 billion). The Fund invests in value equity securities, an
investment strategy that emphasizes buying equity securities that appear to be
undervalued.
The
Fund is primarily actively managed by the sub-advisors. In addition, Principal
Global Investors, LLC may invest up to 30% of the Fund’s assets using an index
sampling strategy designed to match the performance of the Russell
2000®
Value
Index.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of
significance.
Equity
Securities Risk. A
variety of factors can negatively impact the value of equity securities held by
a fund, including a decline in the issuer’s financial condition, unfavorable
performance of the issuer’s sector or industry, or changes in response to
overall market and economic conditions. A fund’s principal market segment(s)
(such as market capitalization or style) may underperform other market segments
or the equity markets as a whole.
•Smaller
Companies Risk. Investments
in smaller companies may involve greater risk and price volatility than
investments in larger, more mature companies. Smaller companies may have limited
product lines, markets, or financial resources; lack the competitive strength of
larger companies; have less experienced managers; or depend on a few key
employees. Their securities often are less widely held and trade less frequently
and in lesser quantities, and their market prices often fluctuate more, than
securities of larger companies.
•Value
Style Risk. Value
investing entails the risk that value stocks may continue to be undervalued by
the market for extended periods, including the entire period during which the
stock is held by a fund, or the events that would cause the stock price to
increase may not occur as anticipated or at all. Moreover, a stock that appears
to be undervalued actually may be appropriately priced at a low level and,
therefore, would not be profitable for the
fund.
Passive
Strategy Risk. A
portion of the Fund seeks to match the performance of a specified index.
However, the correlation between the performance of this portion of the Fund and
index performance may be affected by many factors, such as Fund expenses, the
timing of cash flows into and out of the Fund, changes in securities markets,
and changes in the composition of the index.
Real
Estate Securities Risk. Investing
in real estate securities subjects the fund to the risks associated with the
real estate market (which are similar to the risks associated with direct
ownership in real estate), including declines in real estate values, loss due to
casualty or condemnation, property taxes, interest rate changes, increased
expenses, cash flow of underlying real estate assets, regulatory changes
(including zoning, land use, and rents), and environmental problems, as well as
to the risks related to the management skill and creditworthiness of the
issuer.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Institutional Class shares
for each full calendar year of operations for 10 years (or, if shorter, the life
of the Fund). The table shows for the last one, five, and ten calendar year
periods (or, if shorter, the life of the Fund), how the Fund’s average annual
total returns compare with those of one or more broad measures of market
performance.
For
periods prior to the inception date of Class R-6 shares (November 25, 2014), the
performance shown in the table for Class R-6 shares is that of the Fund’s
Institutional Class shares, adjusted to reflect the fees and expenses of Class
R-6 shares. These adjustments result in performance for such periods that is no
higher than the historical performance of the Institutional Class
shares.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest return for a quarter during
the period of the bar chart above: |
Q4
2020 |
31.34 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2020 |
(35.49) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Institutional Class Return Before
Taxes |
20.01% |
12.97% |
7.95% |
Institutional Class Return After Taxes
on Distributions |
18.89% |
10.95% |
5.46% |
Institutional Class Return After Taxes
on Distributions and Sale of Fund Shares |
12.22% |
9.76% |
5.54% |
Class J
Return Before Taxes |
18.69% |
12.55% |
7.52% |
Class R-1
Return Before Taxes |
19.17% |
12.03% |
7.04% |
Class R-3
Return Before Taxes |
19.46% |
12.37% |
7.37% |
Class R-4
Return Before Taxes |
19.72% |
12.60% |
7.58% |
Class R-5
Return Before Taxes |
19.83% |
12.73% |
7.71% |
Class R-6
Return Before Taxes |
20.15% |
13.02% |
7.96% |
Russell
3000 Index (reflects no deduction for
fees, expenses, or taxes) |
25.96% |
15.16% |
11.48% |
Russell
2000 Value Index (reflects no deduction for fees, expenses, or
taxes) |
14.65% |
10.00% |
6.76% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Institutional Class shares only and would be different for the other share
classes.
Effective March 1, 2024, the Fund
changed its primary broad-based index to the Russell 3000 Index in order to meet
the revised definition of “broad-based securities market index.”
The Russell 2000 Value Index is
included as an additional index for the Fund as it shows how the Fund’s
performance compares with the returns of an index of funds with similar
investment objectives.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
W. Fennessey (since 2009), Portfolio Manager
• Randy
L. Welch (since 2009), Portfolio Manager
Sub-Advisors
Hotchkis
and Wiley Capital Management, LLC
Vaughan
Nelson Investment Management, LP
Purchase
and Sale of Fund Shares
|
|
|
|
|
|
|
| |
Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
J |
Initial
Investment |
$1,000(1) |
J |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
J |
Subsequent
Investments |
$100(1)(2) |
Institutional,
R-1, R-3, R-4, R-5, and R-6 |
There
are no minimum initial or subsequent investment requirements for eligible
purchases. |
N/A |
(1)Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. See Purchase of Fund
Shares for more information.
Tax
Information
The
Fund’s distributions you receive are generally subject to federal income tax as
ordinary income or capital gain and may also be subject to state and local
taxes, unless you are tax-exempt or your account is tax-deferred in which case
your distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
TAX-EXEMPT BOND
FUND
Objective
The Fund seeks to provide a high level of income that is exempt
from federal income tax while protecting investors’ capital.
Fees and Expenses of the
Fund
This
table describes the fees and expenses that you may pay if you buy, hold, and
sell shares of the Fund. You
may pay other fees, such as brokerage commissions and other fees to financial
intermediaries, which are not reflected in the tables and examples
below.
You may qualify for sales charge discounts
if you and your family invest, or agree to invest in the future, at least
$100,000 in Class A Shares of Principal
Funds, Inc. More information about these and other discounts is
available from your financial intermediary and in “Choosing a Share Class and
The Costs of Investing” beginning on page 426 of the Fund’s Prospectus, Appendix
B to the Prospectus titled “Intermediary-Specific Sales Charge Waivers and
Reductions,” and “Multiple Class Structure” beginning on page 70 of the Fund’s
Statement of Additional Information.
If
you purchase Institutional Class shares through certain programs offered by
certain financial intermediaries, you may be required to pay a commission and/or
other forms of compensation to the broker, or to your Financial Professional or
other financial intermediary.
Shareholder Fees
(fees paid directly from your investment)
|
|
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|
|
|
|
|
|
|
| |
|
Share
Class |
|
A |
C |
Inst. |
Maximum
Sales Charge (Load) Imposed on Purchases (as a percentage of offering
price) |
3.75% |
None |
None |
Maximum
Deferred Sales Charge (Load) (as a percentage of the offering price or NAV
when Sales Load is paid, whichever is less) |
1.00% |
1.00% |
None |
Annual
Fund Operating Expenses
(expenses
that you pay each year as a percentage of the value of your
investment)
|
|
|
|
|
|
|
|
|
|
| |
|
Share
Class |
|
A |
C |
Inst. |
Management
Fees |
0.40% |
0.40% |
0.40% |
Distribution
and/or Service (12b-1) Fees |
0.25% |
1.00% |
N/A |
Other
Expenses: |
|
| |
Interest
Expense (1) |
0.12% |
0.12% |
0.12% |
Remainder
of Other Expenses |
0.08% |
0.22% |
0.12% |
Total
Other Expenses |
0.20% |
0.34% |
0.24% |
Total
Annual Fund Operating Expenses |
0.85% |
1.74% |
0.64% |
Expense
Reimbursement (2) |
N/A |
N/A |
(0.07)% |
Total
Annual Fund Operating Expenses after Expense Reimbursement |
0.85% |
1.74% |
0.57% |
(1) Includes
interest expense from inverse floaters.
(2) Principal
Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed
to limit the Fund’s expenses by paying, if necessary, expenses normally payable
by the Fund (excluding interest expense, expenses related to fund investments,
acquired fund fees and expenses, and tax reclaim recovery expenses and other
extraordinary expenses) to maintain a total level of operating expenses
(expressed as a percent of average net assets on an annualized basis) not to
exceed 0.45% for Institutional Class shares. It is expected that the expense
limit will continue through the period ending February 28,
2025; however, Principal Funds, Inc. and PGI, the parties to the
agreement, may mutually agree to terminate the expense limit prior to the end of
the period. Subject to applicable expense limits, the Fund may reimburse PGI for
expenses incurred during the current fiscal year.
Example
This Example is intended to help you compare the cost of investing
in the Fund with the cost of investing in other mutual funds.
The Example assumes that you invest
$10,000 in the Fund for the time periods indicated and then redeem all of your
shares at the end of those periods. The Example assumes conversion of the Class
C shares to Class A shares after the eighth year. The Example also assumes that
your investment has a 5% return each year and that the Fund’s operating expenses
remain the same. The calculation of costs takes into account any applicable
contractual fee waivers and/or expense reimbursements for the period noted in
the table above. Although your actual costs may be higher or lower, based on
these assumptions your costs would be:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
A |
$459 |
$636 |
$829 |
$1,385 |
Class
C |
277 |
548 |
944 |
1,816 |
Institutional
Class |
58 |
198 |
350 |
792
|
With respect to Class C
shares, you would pay the following expenses if you did not redeem your shares
(all other classes would be the same as in the above
example):
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
1
year |
3
years |
5
years |
10
years |
Class
C |
$177 |
$548 |
$944 |
$1,816 |
Portfolio
Turnover
The
Fund pays transaction costs, such as commissions, when it buys and sells
securities (or “turns over” its portfolio). A higher portfolio turnover rate may
indicate higher transaction costs and may result in higher taxes when Fund
shares are held in a taxable account. These costs, which are not reflected in
Annual Fund Operating Expenses or in the Example, affect the Fund’s performance.
During the most recent fiscal year, the Fund’s portfolio turnover rate was
36.9% of the average
value of its portfolio.
Principal Investment
Strategies
Under
normal circumstances, the Fund invests at least 80% of its net assets, plus any
borrowings for investment purposes, in tax-exempt bonds (securities issued by or
on behalf of state or local governments and other public authorities) at the
time of purchase. Many of these are from California, Illinois,
and New York. Generally, municipal obligations pay interest that is exempt from
federal income tax. The Fund’s investment in municipal obligations include
industrial revenue bonds. The Fund also invests in inverse floating rate
obligations (variable rate debt instruments that pay interest at rates that move
in the opposite direction of prevailing interest rates), which are generally
more volatile than other types of municipal obligations and may involve
leverage.
The
Fund invests in investment-grade securities and, with respect to up to 20% of
its net assets, in below-investment-grade bonds (sometimes called “high yield
bonds” or “junk bonds”). Below-investment-grade bonds are rated, at the time of
purchase, Ba1 or lower by Moody’s Investors Service, Inc. (“Moody’s”) and BB+ or
lower by S&P Global Ratings (“S&P Global”). The Fund’s total investment
in below-investment-grade bonds plus investment-grade bonds rated Baa by Moody’s
or BBB by S&P Global, at the time of purchase, will not exceed 40% of the
Fund’s net assets. If the bond has been rated by only one of the rating
agencies, that rating will determine the bond’s rating; if the bond is rated
differently by the rating agencies, the highest rating will be used; and if the
bond has not been rated by either of the rating agencies, those selecting such
investments will determine the bond’s quality.
Under
normal circumstances, the Fund maintains an average portfolio duration that is
within ±50% of the duration of the Bloomberg Municipal Bond Index, which
as
of January 31, 2024 was 5.56 years.
The Fund is not managed to a particular maturity.
Principal
Risks
The
value of your investment in the Fund changes with the value of the Fund’s
investments. Many factors affect that value, and it is
possible to lose money by investing in the Fund. An
investment in the Fund is not a deposit of a bank and is not insured or
guaranteed by the Federal Deposit Insurance Corporation or any other government
agency. The principal risks of investing in the Fund are listed
below in alphabetical order and not in order of significance.
Counterparty
Risk. Counterparty risk is the risk that the counterparty to a contract
or other obligation will be unable or unwilling to honor its
obligations.
Fixed-Income
Securities Risk. Fixed-income
securities are subject to interest rate, credit quality, and liquidity risks.
The market value of fixed-income securities generally declines when interest
rates rise, and increased interest rates may adversely affect the liquidity of
certain fixed-income securities. Moreover, an issuer of fixed-income securities
could default on its payment obligations due to increased interest rates or for
other reasons.
Geographic
Concentration Risk. A
fund that invests significant portions of its assets in municipal obligations
and bonds in particular geographic areas (a particular state, such as
California, or a particular country or region) has greater exposure than other
funds to economic conditions and developments in those
areas.
High
Yield Securities Risk. High
yield fixed-income securities (commonly referred to as “junk bonds”) are subject
to greater credit quality risk than higher rated fixed-income securities and
should be considered speculative.
Industrial
Revenue Bond Risk. The
Fund will be sensitive to, and its performance will depend to a greater extent
on, the overall condition and performance of industrial revenue bonds. These
revenue bonds are issued by or on behalf of public authorities to obtain funds
to finance various public and/or privately operated facilities, including those
for business and manufacturing, housing, sports, pollution control, airport,
mass transit, port, and parking facilities. These bonds are normally secured
only by the revenues from the project and not by state or local government tax
payments. Consequently, the credit quality of these bonds is dependent upon the
ability of the user of the facilities financed by the bonds and any guarantor to
meet its financial obligations.
Inverse
Floating Rate Investments Risk. Inverse
floating rate investments are extremely sensitive to changes in interest rates
and, in some cases, their market value may be extremely
volatile.
Leverage
Risk. Leverage
created by borrowing or certain types of transactions or investments may impair
the fund’s liquidity, cause it to liquidate positions at an unfavorable time,
increase volatility of the fund’s net asset value, or diminish the fund’s
performance.
Municipal
Obligations Risk. Principal
and interest payments on municipal securities may not be guaranteed by the
issuing body and may be payable only from a particular source. That source may
not perform as expected, and payment obligations may not be made or made on
time.
Portfolio
Duration Risk. Portfolio
duration is a measure of the expected life of a fixed-income security and its
sensitivity to changes in interest rates. The longer a fund’s average portfolio
duration, the more sensitive the fund will be to changes in interest rates,
which means funds with longer average portfolio durations may be more volatile
than those with shorter durations.
Redemption
and Large Transaction Risk. Ownership
of the Fund’s shares may be concentrated in one or a few large investors (such
as funds of funds, institutional investors, and asset allocation programs) that
may redeem or purchase shares in large quantities. These transactions may cause
the Fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
Fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
Performance
The following
information provides some indication of the risks of investing in the
Fund. Past performance (before and
after taxes) is not necessarily an indication of how the Fund will perform in
the future. You may get updated performance information at
www.PrincipalAM.com.
The
bar chart shows the investment returns of the Fund’s Class A shares for each
full calendar year of operations for 10 years (or, if shorter, the life of the
Fund). These annual returns do not reflect sales charges on Class A shares; if
they did, results would be lower. The table shows for the last one, five, and
ten calendar year periods (or, if shorter, the life of the Fund), how the Fund’s
average annual total returns compare with those of one or more broad measures of
market performance.
For
periods prior to the inception date of Institutional Class shares (May 18,
2015), the performance shown in the table for Institutional Class shares is that
of the Fund’s Class A shares, adjusted to reflect the fees and expenses of the
Institutional Class shares. However, where the adjustment for fees and expenses
results in performance for Institutional Class shares that is higher than the
historical performance of the Class A shares, the historical performance of the
Class A shares is used (without respect to sales charges, which are not
applicable to Institutional Class shares). These adjustments result in
performance for such periods that is no higher than the historical performance
of the Class A shares.
Total Returns as of
December 31
|
|
|
|
|
|
|
| |
Highest return for a quarter during
the period of the bar chart above: |
Q4
2023 |
6.34 |
% |
Lowest
return for a quarter during the period of the bar chart
above: |
Q1
2022 |
(7.11) |
% |
|
|
|
|
|
|
|
|
|
|
| |
Average
Annual Total Returns
For
the periods ended December 31, 2023 |
|
1
Year |
5
Years |
10
Years |
Class A
Return Before Taxes |
2.60% |
1.20% |
2.72% |
Class A
Return After Taxes on Distributions |
2.60% |
1.20% |
2.72% |
Class A
Return After Taxes on Distributions and Sale of Fund
Shares |
2.81% |
1.54% |
2.86% |
Class C
Return Before Taxes |
4.67% |
1.11% |
2.46% |
Institutional Class Return Before
Taxes |
6.94% |
2.23% |
3.35% |
Bloomberg
Municipal Bond Index
(reflects no deduction for
fees, expenses, or taxes) |
6.40% |
2.25% |
3.03% |
After-tax returns are
calculated using the historical highest individual federal marginal income tax
rates and do not reflect the impact of state and local taxes.
Actual after-tax returns
depend on an investor’s tax situation and may differ from those shown. The
after-tax returns shown are not relevant to investors who hold their Fund shares
through tax-deferred arrangements, such as 401(k) plans or individual retirement
accounts. After-tax returns are shown
for Class A shares only and would be different for the other share
classes.
Investment
Advisor and Portfolio Managers
Principal
Global Investors, LLC
• James
Noble (since 2013), Portfolio Manager
• James
Welch (since 2014), Portfolio Manager
Purchase
and Sale of Fund Shares
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Share
Class |
Investment
Type |
Purchase
Minimum Per Fund |
A
and C |
Initial
Investment |
$1,000(1) |
A
and C |
Initial
Investment for accounts with an Automatic Investment Plan
(AIP) |
$100 |
A
and C |
Subsequent
Investments |
$100(1)(2) |
Institutional |
There
are no minimum initial or subsequent investment requirements for eligible
purchases. |
N/A |
(1)
Some
exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more
information.
(2)
For
accounts with an AIP, the subsequent automatic investments must total $1,200
annually if the initial $1,000 minimum has not been met.
You
may purchase or redeem shares on any business day (normally any day when the New
York Stock Exchange is open for regular trading) through your plan,
intermediary, or Financial Professional by sending a written request to
Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or
430 W. 7th Street, Ste. 219971, Kansas City, MO 64105-1407 (overnight mail);
calling us at 1-800-222-5852; or accessing our website
(www.principal.com).
Class
C shares are subject to an 8-year automatic conversion plan whereby Class C
shares held for eight years after purchase will automatically convert to Class A
shares of the same Fund. See Purchase of Fund Shares for more
information.
Tax
Information
While
the Fund intends to distribute income that is exempt from regular federal and
possibly some state income taxes, a portion of the Fund’s distributions may be
subject to federal income taxes or to the federal individual alternative minimum
tax. A portion of the Fund’s distributions likely will be subject to state
income taxes depending on your state’s rules. Different rules may apply if you
are tax exempt or if your account is tax deferred in which case your
distributions would be taxed when withdrawn from the tax-deferred
account.
Payments
to Broker-Dealers and Other Financial Intermediaries
If
you purchase the Fund through a broker-dealer or other financial intermediary
(such as a bank), the Fund and its related companies may pay the intermediary
for the sale of Fund shares and related services. These payments may create a
conflict of interest by influencing the broker-dealer or other intermediary and
your salesperson to recommend the Fund over another investment, or to recommend
one share class of the Fund over another share class. Ask your salesperson or
visit your financial intermediary’s website for more information.
ADDITIONAL
INFORMATION ABOUT INVESTMENT STRATEGIES AND RISKS
Each
Fund’s investment objective is described in the summary section for each Fund.
The summary section also describes each Fund’s principal investment strategies,
including the types of securities in which each Fund invests, and the principal
risks of investing in each Fund. The principal investment strategies are not the
only investment strategies available to each Fund, but they are the ones each
Fund primarily uses to achieve its investment objective.
Except
for Fundamental Restrictions described in the Registrant’s Statement of
Additional Information (“SAI”), the Registrant’s Board (the “Board”) may change
any Fund’s objective or investment strategies without a shareholder vote if it
determines such a change is in the best interests of the Fund. If there is a
material change to a Fund’s investment objective or investment strategies, you
should consider whether the Fund remains an appropriate investment for you.
There is no guarantee that each Fund will meet its objective.
Each
Fund is designed to be a portion of an investor’s portfolio. No Fund is intended
to be a complete investment program. Investors should consider the risks of a
Fund before making an investment; it is possible to lose money by investing in a
Fund.
The
following investment strategies and risks (before the “Strategy and Risk Table”
below) apply to the Funds and, depending on market conditions, can materially
impact the management of the Funds.
Active
Management
The
performance of a fund that is actively managed (including hybrid funds or
passively managed funds that use a sampling approach that includes some actively
managed components) will reflect, in part, the ability of those managing the
investments of the fund to make investment decisions that are suited to
achieving the fund’s investment objective. Actively managed funds may invest
differently from the benchmark against which the Fund’s performance is compared.
When making decisions about whether to buy or sell equity securities,
considerations may include, among other things, a company’s strength in
fundamentals, its potential for earnings growth over time, its ability to
navigate certain macroeconomic environments, the current price of its securities
relative to their perceived worth and relative to others in its industry, and
analysis from computer models. When making decisions about whether to buy or
sell fixed-income investments, considerations may include, among other things,
the strength of certain sectors of the fixed-income market relative to others,
interest rates; a range of economic, political, and financial factors; the
balance between supply and demand for certain asset classes; the credit quality
of individual issuers; the fundamental strengths of corporate and municipal
issuers; and other general market conditions.
Models,
which may assist portfolio managers and analysts in formulating their securities
trading and allocation decisions by providing investment and risk management
insights, may also expose a fund to risks. Models may be predictive in nature,
which models depend heavily on the accuracy and reliability of historical data
that is supplied by others and may be incorrect or incorrectly input. The fund
bears the risk that the quantitative models used will not be successful in
identifying trends or in determining the size and direction of investment
positions that will enable the fund to achieve its investment objective. In
addition, “model prices” will often differ substantially from market prices,
especially for instruments with complex characteristics, such as derivative
instruments.
An
active fund’s investment performance depends upon the successful allocation of
the fund’s assets among asset classes, geographical regions, industry sectors,
and specific issuers and investments. There is no guarantee that these
allocation techniques and decisions will produce the desired results. It is
possible to lose money on an investment in a fund as a result of these
allocation decisions. If a fund’s investment strategies do not perform as
expected, the fund could underperform other funds with similar investment
objectives or lose money. Moreover, buying and selling securities to adjust the
fund’s asset allocation may increase portfolio turnover and generate transaction
costs.
Investment
advisors with large assets under management in a Fund, or in other funds that
have the same strategy as a Fund, may have difficulty fully investing such
Fund’s assets according to its investment objective due to potential liquidity
constraints and high transaction costs. Typically, small-cap, mid-cap, and
emerging market equity funds are more susceptible to such a risk. A Fund may add
additional investment advisors or close the Fund to new investors to address
such risks.
Passive
Management (Index Funds)
Some
funds (including index funds and hybrid funds that include a passive component)
use a passive, or indexing, investment approach. Funds that are pure index funds
do not attempt to manage market volatility, use defensive strategies, or reduce
the effect of any long-term periods of poor stock or bond performance. Some
index funds attempt to fully replicate their relevant target index by investing
primarily in the securities held by the index in approximately the same
proportion of the weightings in the index. However, because of the difficulty of
executing some relatively small securities trades, other index funds may use a
“sampling” approach and may not be invested in the less heavily weighted
securities held by the index. Some index funds may invest in index futures,
swaps, and/or exchange-traded funds on a daily basis in an effort to minimize
tracking error relative to the benchmark.
It
is unlikely that an index fund’s performance will perfectly correlate with the
performance of the fund’s relevant index. An index fund’s ability to match the
performance of its index may be affected by many factors, such as fund expenses,
the timing of cash flows into and out of the fund, changes in securities
markets, and changes in the composition of the index.
The
providers of the Funds' respective underlying indexes do not provide any
warranty or accept any liability for the quality, accuracy, or completeness of
any index or its related data. Those managing an index fund’s investments manage
such fund consistently with the underlying index provided by the index provider
and do not provide any warranty or guarantee against the index provider’s or its
agent’s errors. Errors in the quality, accuracy, and completeness of the data
used to compile an underlying index may occur and may not be identified and
corrected in a timely manner, or at all. Such errors may negatively or
positively impact the performance of a fund.
Unusual
market conditions may cause an index provider to postpone a scheduled rebalance,
which could cause a fund’s underlying index to vary from its normal or expected
composition. The postponement of a scheduled rebalance, particularly in a time
of market volatility, could mean that constituents that would otherwise be
removed at rebalance due to changes in market capitalizations, issuer credit
ratings, or other reasons may remain, causing the performance and constituents
of the underlying index to vary from those expected under normal conditions.
Apart from scheduled rebalances, an index provider may carry out additional
index rebalances due to unusual market conditions or in order, for example, to
correct an error in the selection of index constituents. When an index is
rebalanced and an index fund in turn rebalances its portfolio, such fund and its
shareholders bear any related transaction costs and market
exposure.
Cash
Management
A
Fund may have uninvested cash balances pending investment in other securities,
pending payment of redemptions, or in other circumstances where liquidity is
necessary or desirable. A Fund may hold uninvested cash; invest it in cash
equivalents such as money market funds, including the Principal Funds, Inc. -
Government Money Market Fund; lend it to other Funds pursuant to the Funds'
interfund lending facility; and/or invest in other instruments that those
managing the Fund’s assets deem appropriate for cash management purposes.
Generally, these types of investments offer less potential for gains than other
types of securities. For example, to attempt to provide returns similar to its
benchmark, a Fund (regardless of how it designates usage of derivatives and
investment companies) may invest uninvested cash in derivatives, such as stock
index futures contracts, or exchange-traded funds (“ETFs”), including Principal
Exchange-Traded Funds ETFs. In selecting such investments, Principal Global
Investors, LLC (“PGI”), the Funds’ advisor, may have conflicts of interest due
to economic or other incentives to make or retain an investment in certain
affiliated funds instead of in other investments that may be appropriate for a
Fund.
Liquidity
The
Funds have established a liquidity risk management program as required by the
U.S. Securities and Exchange Commission’s (the “SEC”) Liquidity Rule. Under the
program, PGI assesses, manages, and periodically reviews each Fund’s liquidity
risk, which is the risk that a Fund could not meet requests to redeem shares
issued by the Fund without significant dilution of the remaining investors’
interests in the Fund. As part of the program, PGI classifies each investment as
a “highly liquid investment,” “moderately liquid investment,” “less liquid
investment,” or “illiquid investment.” The liquidity of a Fund’s portfolio
investments is determined based on relevant market, trading, and
investment-specific considerations under the program. To the extent that an
investment is deemed to be an illiquid investment or a less liquid investment, a
Fund can expect to be exposed to greater liquidity risk.
Certain
fund holdings may be deemed to be less liquid or illiquid because they cannot be
readily sold without significantly impacting the value of the holdings. A fund
is exposed to liquidity risk when trading volume, lack of a market maker, or
legal restrictions impair its ability to sell particular securities or close
derivative positions at an advantageous price. Funds with principal investment
strategies that involve securities of companies with smaller market
capitalizations, foreign securities, derivatives, high yield bonds, and bank
loans, or securities with substantial market and/or credit risk, tend to have
the greatest exposure to liquidity risk.
Liquidity
risk also refers to the risk of unusually high redemption requests, redemption
requests by certain large shareholders such as institutional investors or asset
allocators, or other unusual market conditions that may make it difficult for a
fund to sell investments within the allowable time period to meet redemptions.
Meeting such redemption requests could require a fund to sell securities at
reduced prices or under unfavorable conditions, which would reduce the value of
the fund.
Market
Volatility and Securities Issuers
The
value of a fund’s portfolio securities may decrease in response to overall stock
or bond market movements. Markets tend to move in cycles, with periods of rising
prices and periods of falling prices. Stocks tend to go up and down in value
more than bonds. The value of a security may decline for reasons directly
related to the issuer, such as management performance, financial leverage, and
reduced demand for the issuer’s goods or services. As a result, the value of an
individual security or particular type of security can be more volatile than the
market as a whole and can perform differently from the value of the market as a
whole.
Additionally,
U.S. and world economies, as well as markets (or certain market sectors), may
experience greater volatility in response to the occurrence of natural or
man-made disasters and geopolitical events, such as war, acts of terrorism,
pandemics, military actions, trade disputes, or political instability. Moreover,
if a fund’s investments are concentrated in certain sectors, its performance
could be worse than the overall market.
Global
events can impact the securities markets. Russia's invasion of Ukraine in 2022
has resulted in sanctions being levied by the United States, European Union, and
other countries against Russia. Russia's military actions and the resulting
sanctions could adversely affect global energy and financial markets and, thus,
could affect the value of the fund's investments, even beyond any direct
exposure the fund may have to Russian issuers or the adjoining geographic
regions. The extent and duration of the military action, sanctions, and
resulting market disruptions could be substantial. extent and duration of the
military action, sanctions, and resulting market disruptions could be
substantial.
Other
market disruption events include the pandemic spread of the novel coronavirus
designated as COVID-19. The transmission of COVID-19 and efforts to contain its
spread resulted in border closings and other travel restrictions and
disruptions; disruptions to business operations, supply chains, and customer
activity; event cancellations and restrictions; service cancellations and
reductions; significant challenges in the healthcare industry; and quarantines.
Health crises may exacerbate other pre-existing political, social, economic,
market, and financial risks and negatively affect the global economy, as well as
the economies of individual countries, the financial performance of individual
companies and sectors, and the markets in general in significant ways.
Market
disruption events could also impair the information technology and other
operational systems upon which a fund’s investment advisor or sub-advisor rely,
and could otherwise disrupt the ability of the fund’s service providers to
perform essential tasks. In certain cases, an exchange or market may close or
issue trading halts on either specific securities or even the entire market,
which may result in a fund being, among other things, unable to buy or sell
certain securities or financial instruments or accurately price its
investments.
Governmental
and quasi-governmental authorities and regulators throughout the world, such as
the Federal Reserve, have in the past responded to major economic disruptions
with a variety of significant fiscal and monetary policy changes, including but
not limited to, direct capital infusions into companies, new monetary programs,
and dramatic changes to interest rates. Certain of those policy changes were
implemented or considered in response to the COVID-19 outbreak and inflationary
pressures. Such policy changes may adversely affect the value, volatility, and
liquidity of dividend and interest-paying securities.
The
impact of current and future market disruption events may last for an extended
period of time and could result in a substantial economic downturn or recession.
Such events could have significant adverse direct or indirect effects on the
funds and their investments, and may result in a fund’s inability to achieve its
investment objective, cause funds to experience significant redemptions, cause
the postponement of reconstitution/rebalance dates of passive funds’ underlying
indices, adversely affect the prices and liquidity of the securities and other
instruments in which a fund invests, negatively impact the fund’s performance,
and cause losses on your investment in the fund. You should also review this
Prospectus and the SAI to understand each Fund’s discretion to implement
temporary defensive measures, as well as the circumstances in which a Fund may
satisfy redemption requests in-kind.
Securities
Lending
To
generate additional income, a Fund may lend its portfolio securities to
broker-dealers and other institutional borrowers to the extent permitted under
the Investment Company Act of 1940, as amended (the “1940 Act”) or the rules,
regulations, or interpretations thereunder. A Fund that lends its securities
will continue to receive amounts equal to the interest or dividend payments
generated by the loaned securities. In addition to receiving these amounts, the
Fund generates income on the loaned securities by receiving a fee from the
borrower, and by earning interest on the collateral received from the borrower.
A negotiated portion of the income is paid to a securities lending agent (e.g.,
a bank or trust company) that arranged the loan. During the term of the loan,
the Fund’s investment performance will reflect changes in the value of the
loaned securities.
A
borrower’s obligations under a securities loan is secured continuously by
collateral posted by the borrower and held by the custodian in an amount at
least equal to the market value of the loaned securities. Generally, cash
collateral that a Fund receives from securities lending activities will be
invested in the Principal Funds, Inc. - Government Money Market Fund, which is
managed by PGI and for which PGI receives a management fee. The collateral may
also be invested in unaffiliated money market funds.
Securities
lending involves exposure to certain risks, including the risk of losses
resulting from problems in the settlement and accounting process; the risk of a
mismatch between the return on cash collateral reinvestments and the fees each
Fund has agreed to pay a borrower; and credit, legal, counterparty, and market
risk. A Fund’s participation in a securities lending transaction may affect the
amount, timing, and character of distributions derived from such transaction to
shareholders. Qualified dividend income does not include “payments in lieu of
dividends,” which the Funds anticipate they will receive in securities lending
transactions.
Temporary
Defensive Measures
From
time to time, as part of its investment strategy, a Fund may invest without
limit in cash and cash equivalents for temporary defensive purposes in response
to adverse market, economic, or political conditions. For this purpose, cash
equivalents include: bank notes, bank certificates of deposit, bankers’
acceptances, repurchase agreements, commercial paper, and commercial paper
master notes, which are floating rate debt instruments without a fixed maturity.
In addition, a Fund may purchase U.S. government securities, preferred stocks,
and debt securities, whether or not convertible into or carrying rights for
common stock. There is no limit on the extent to which a Fund may take temporary
defensive measures. In taking such measures, a Fund may lose the benefit of
upswings and may limit its ability to meet, or fail to achieve, its investment
objective.
Strategy
and Risk Table
The
following table lists each Fund and identifies whether the strategies and risks
discussed in this section (listed in alphabetical order and not in order of
significance) are principal for a Fund. The risks described below for each Fund
that operates as a fund of funds (as identified in the table) include risks at
both the fund of funds level and underlying funds level. Each Fund is also
subject to the risks of any underlying funds in which it invests.
The
SAI contains additional information about investment strategies and their
related risks.
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INVESTMENT
STRATEGIES AND RISKS |
CALIFORNIA MUNICIPAL |
CORE
FIXED INCOME |
CORE
PLUS BOND |
DIVERSIFIED INCOME |
DIVERSIFIED INTERNATIONAL |
Bank
Loans (also known as Senior Floating Rate Interests) |
|
|
| X |
|
Convertible
Securities |
|
|
|
| |
Counterparty
Risk |
X |
|
X
|
X |
|
Derivatives |
|
| X |
X |
|
Emerging
Markets |
|
| X |
X |
X |
Equity
Securities |
|
|
|
| X |
•
Growth Style |
|
|
|
| X |
•
Smaller Companies |
|
|
|
| X |
•
Value Style |
|
|
|
| X |
Fixed-Income
Securities |
X |
X |
X |
X |
|
Foreign
Currency |
|
|
X
|
X |
X |
Foreign
Securities |
| X |
X |
X |
X |
Fund
of Funds |
|
|
|
| |
Geographic
Concentration (Municipal Obligations) |
X |
|
|
| |
Hedging |
|
| X |
X |
|
High
Portfolio Turnover |
|
| X |
| |
High
Yield Securities |
X |
| X |
X |
|
Industrial
Revenue Bond |
X |
|
|
| |
Industry
Concentration |
|
|
|
| |
Inverse
Floating Rate
Investments |
X |
|
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| |
Investment
Company
Securities |
|
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|
| |
Leverage |
X |
| X |
| |
Municipal
Obligations and AMT-Subject Bonds |
X |
|
|
| |
Portfolio
Duration |
X |
X |
X |
X |
|
Preferred
Securities |
|
|
| X |
|
Real
Estate Investment Trusts (“REITs”) |
|
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| |
Real
Estate Securities |
| X |
X |
| |
Redemption
and Large Transaction Risk |
X |
X |
X |
X |
X |
Repurchase
Agreements |
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| |
Securitized
Products |
| X |
X |
X |
|
U.S.
Government and U.S. Government-Sponsored Securities |
| X |
X |
| |
Volatility
Mitigation |
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INVESTMENT
STRATEGIES AND RISKS |
EQUITY INCOME |
FINISTERRE EMERGING MARKETS
TOTAL RETURN BOND |
GLOBAL EMERGING MARKETS |
GLOBAL
REAL ESTATE SECURITIES |
GOVERNMENT
& HIGH QUALITY BOND |
Bank
Loans (also known as Senior Floating Rate Interests) |
|
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| |
Convertible
Securities |
|
X
|
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| |
Counterparty
Risk |
| X |
|
| |
Derivatives |
| X |
|
| X |
Emerging
Markets |
| X |
X |
| |
Equity
Securities |
X |
| X |
X |
|
•
Growth Style |
|
| X |
X |
|
•
Smaller Companies |
X
|
| X |
X |
|
•
Value Style |
X |
|
X
|
X |
|
Fixed-Income
Securities |
| X |
|
| X |
Foreign
Currency |
| X |
X |
X |
|
Foreign
Securities |
X |
X |
X |
X |
|
Fund
of Funds |
|
|
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| |
Geographic
Concentration (Municipal Obligations) |
|
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| |
Hedging |
| X |
|
| |
High
Portfolio Turnover |
| X |
|
| X |
High
Yield Securities |
| X |
|
| |
Industrial
Revenue Bond |
|
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|
| |
Industry
Concentration |
|
|
| X |
|
Inverse
Floating Rate
Investments |
|
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| |
Investment
Company
Securities |
|
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|
| |
Leverage |
| X |
|
| |
Municipal
Obligations and AMT-Subject Bonds |
|
|
|
| |
Portfolio
Duration |
| X |
|
| X |
Preferred
Securities |
|
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| |
Real
Estate Investment Trusts (“REITs”) |
|
|
| X |
|
Real
Estate Securities |
|
|
| X |
X |
Redemption
and Large Transaction Risk |
X |
X |
X |
X |
X |
Repurchase
Agreements |
|
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| |
Securitized
Products |
|
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|
| X |
U.S.
Government and U.S. Government-Sponsored Securities |
| X |
|
| X |
Volatility
Mitigation |
| X |
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| |
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INVESTMENT
STRATEGIES AND RISKS |
GOVERNMENT MONEY
MARKET |
HIGH
INCOME |
HIGH
YIELD |
INFLATION PROTECTION |
INTERNATIONAL
I |
Bank
Loans (also known as Senior Floating Rate Interests) |
| X |
X |
| |
Convertible
Securities |
|
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| |
Counterparty
Risk |
X |
X |
| X |
|
Derivatives |
|
|
| X |
|
Emerging
Markets |
|
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|
| X |
Equity
Securities |
|
|
|
| X |
•
Growth Style |
|
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|
X
|
•
Smaller Companies |
|
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| X |
•
Value Style |
|
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|
|
X
|
Fixed-Income
Securities |
X |
X |
X |
X |
|
Foreign
Currency |
|
|
| X |
X |
Foreign
Securities |
| X |
X |
X |
X |
Fund
of Funds |
|
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| |
Geographic
Concentration (Municipal Obligations) |
|
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| |
Hedging |
|
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| |
High
Portfolio Turnover |
|
|
| X |
|
High
Yield Securities |
| X |
X |
| |
Industrial
Revenue Bond |
|
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| |
Industry
Concentration |
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| |
Inverse
Floating Rate
Investments |
|
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| |
Investment
Company
Securities |
X |
|
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| |
Leverage |
| X |
|
| |
Municipal
Obligations and AMT-Subject Bonds |
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| |
Portfolio
Duration |
| X |
X |
X |
|
Preferred
Securities |
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Real
Estate Investment Trusts (“REITs”) |
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| |
Real
Estate Securities |
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| |
Redemption
and Large Transaction Risk |
X |
X |
X |
X |
X |
Repurchase
Agreements |
X |
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| |
Securitized
Products |
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| |
U.S.
Government and U.S. Government-Sponsored Securities |
X |
|
| X |
|
Volatility
Mitigation |
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INVESTMENT
STRATEGIES AND RISKS |
LARGECAP GROWTH
I |
LARGECAP S&P
500 INDEX |
LARGECAP VALUE
III |
MIDCAP |
MIDCAP GROWTH |
Bank
Loans (also known as Senior Floating Rate Interests) |
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Convertible
Securities |
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| |
Counterparty
Risk |
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|
| |
Derivatives |
| X |
|
| |
Emerging
Markets |
|
|
|
| |
Equity
Securities |
X |
X |
X |
X |
X |
•
Growth Style |
X |
|
|
| X |
•
Smaller Companies |
X |
| X |
X |
X |
•
Value Style |
|
| X |
| |
Fixed-Income
Securities |
|
|
|
| |
Foreign
Currency |
|
|
|
| |
Foreign
Securities |
|
|
| X |
|
Fund
of Funds |
|
|
|
| |
Geographic
Concentration (Municipal Obligations) |
|
|
|
| |
Hedging |
|
|
|
| |
High
Portfolio Turnover |
|
|
|
| X |
High
Yield Securities |
|
|
|
| |
Industrial
Revenue Bond |
|
|
|
| |
Industry
Concentration |
|
X
(1) |
|
| |
Inverse
Floating Rate
Investments |
|
|
|
| |
Investment
Company
Securities |
| X |
|
| |
Leverage |
|
|
|
| |
Municipal
Obligations and AMT-Subject Bonds |
|
|
|
| |
Portfolio
Duration |
|
|
|
| |
Preferred
Securities |
|
|
|
| |
Real
Estate Investment Trusts (“REITs”) |
|
|
|
| |
Real
Estate Securities |
|
|
|
| |
Redemption
and Large Transaction Risk |
X |
X |
X |
X |
X |
Repurchase
Agreements |
|
|
|
| |
Securitized
Products |
|
|
|
| |
U.S.
Government and U.S. Government-Sponsored Securities |
|
|
|
| |
Volatility
Mitigation |
|
|
|
| |
|
|
|
|
| |
(1) |
The
Fund will not concentrate (i.e., invest more than 25% of its assets) its
investments in a particular industry except to the extent the Index is so
concentrated. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
INVESTMENT
STRATEGIES AND RISKS |
MIDCAP GROWTH
III |
MIDCAP
S&P 400 INDEX |
MIDCAP VALUE
I |
MONEY
MARKET |
OVERSEAS |
Bank
Loans (also known as Senior Floating Rate Interests) |
|
|
|
| |
Convertible
Securities |
|
|
|
| |
Counterparty
Risk |
|
|
|
| |
Derivatives |
| X |
|
| |
Emerging
Markets |
|
|
|
| X |
Equity
Securities |
X |
X |
X |
| X |
•
Growth Style |
X |
|
|
| |
•
Smaller Companies |
X |
X |
X |
| X |
•
Value Style |
|
| X |
| X |
Fixed-Income
Securities |
|
|
| X |
|
Foreign
Currency |
|
|
|
| X |
Foreign
Securities |
|
|
| X |
X |
Fund
of Funds |
|
|
|
| |
Geographic
Concentration (Municipal Obligations) |
|
|
|
| |
Hedging |
|
|
|
| |
High
Portfolio Turnover |
|
|
|
| |
High
Yield Securities |
|
|
|
| |
Industrial
Revenue Bond |
|
|
|
| |
Industry
Concentration |
|
X
(1) |
|
| |
Inverse
Floating Rate
Investments |
|
|
|
| |
Investment
Company
Securities |
| X |
|
| |
Leverage |
|
|
|
| |
Municipal
Obligations and AMT-Subject Bonds |
|
|
|
| |
Portfolio
Duration |
|
|
|
| |
Preferred
Securities |
|
|
|
| |
Real
Estate Investment Trusts (“REITs”) |
|
|
|
| |
Real
Estate Securities |
|
| X |
| |
Redemption
and Large Transaction Risk |
X |
X |
X |
X |
X |
Repurchase
Agreements |
|
|
| X |
|
Securitized
Products |
|
|
|
| |
U.S.
Government and U.S. Government-Sponsored Securities |
|
|
| X |
|
Volatility
Mitigation |
|
|
|
| |
|
|
|
|
| |
(1) |
The
Fund will not concentrate (i.e., invest more than 25% of its assets) its
investments in a particular industry except to the extent the Index is so
concentrated. |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
INVESTMENT
STRATEGIES AND RISKS |
PRINCIPAL CAPITAL APPRECIATION |
PRINCIPAL LIFETIME STRATEGIC INCOME |
PRINCIPAL LIFETIME
2015 |
PRINCIPAL LIFETIME
2020 |
PRINCIPAL LIFETIME
2025 |
Bank
Loans (also known as Senior Floating Rate Interests) |
|
|
|
| |
Convertible
Securities |
|
|
|
| |
Counterparty
Risk |
| X |
X |
X |
X |
Derivatives |
| X |
X |
X |
X |
Emerging
Markets |
|
|
|
| |
Equity
Securities |
X |
X |
X |
X |
X |
•
Growth Style |
| X |
X |
X |
X |
•
Smaller Companies |
X
|
| X |
X |
X |
•
Value Style |
| X |
X |
X |
X |
Fixed-Income
Securities |
| X |
X |
X |
X |
Foreign
Currency |
| X |
X |
X |
X |
Foreign
Securities |
| X |
X |
X |
X |
Fund
of Funds |
| X |
X |
X |
X |
Geographic
Concentration (Municipal Obligations) |
|
|
|
| |
Hedging |
|
|
|
| |
High
Portfolio Turnover |
|
|
|
| |
High
Yield Securities |
|
|
|
| |
Industrial
Revenue Bond |
|
|
|
| |
Industry
Concentration |
|
|
|
| |
Inverse
Floating Rate
Investments |
|
|
|
| |
Investment
Company
Securities |
| X |
X |
X |
X |
Leverage |
|
|
|
| |
Municipal
Obligations and AMT-Subject Bonds |
|
|
|
| |
Portfolio
Duration |
|
X
|
X |
X |
X |
Preferred
Securities |
|
|
|
| |
Real
Estate Investment Trusts (“REITs”) |
|
|
|
| |
Real
Estate Securities |
|
|
|
| |
Redemption
and Large Transaction Risk |
X |
X |
X |
X |
X |
Repurchase
Agreements |
|
|
|
| |
Securitized
Products |
| X |
X |
X |
X |
U.S.
Government and U.S. Government-Sponsored Securities |
| X |
X |
X |
X |
Volatility
Mitigation |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
INVESTMENT
STRATEGIES AND RISKS |
PRINCIPAL LIFETIME
2030 |
PRINCIPAL LIFETIME
2035 |
PRINCIPAL LIFETIME
2040 |
PRINCIPAL LIFETIME
2045 |
PRINCIPAL LIFETIME
2050 |
Bank
Loans (also known as Senior Floating Rate Interests) |
|
|
|
| |
Convertible
Securities |
|
|
|
| |
Counterparty
Risk |
X |
X |
X |
X |
X |
Derivatives |
X |
X |
X |
X |
X |
Emerging
Markets |
|
| X |
X |
X |
Equity
Securities |
X |
X |
X |
X |
X |
•
Growth Style |
X |
X |
X |
X |
X |
•
Smaller Companies |
X |
X |
X |
X |
X |
•
Value Style |
X |
X |
X |
X
|
X |
Fixed-Income
Securities |
X |
X |
X |
X |
X |
Foreign
Currency |
X |
X |
X |
X |
X |
Foreign
Securities |
X |
X |
X |
X |
X |
Fund
of Funds |
X |
X |
X |
X |
X |
Geographic
Concentration (Municipal Obligations) |
|
|
|
| |
Hedging |
|
|
|
| |
High
Portfolio Turnover |
|
|
|
| |
High
Yield Securities |
|
|
|
| |
Industrial
Revenue Bond |
|
|
|
| |
Industry
Concentration |
|
|
|
| |
Inverse
Floating Rate
Investments |
|
|
|
| |
Investment
Company
Securities |
X |
X |
X |
X |
X |
Leverage |
|
|
|
| |
Municipal
Obligations and AMT-Subject Bonds |
|
|
|
| |
Portfolio
Duration |
X |
X |
X |
X |
X |
Preferred
Securities |
|
|
|
| |
Real
Estate Investment Trusts (“REITs”) |
|
|
|
| |
Real
Estate Securities |
|
|
|
| |
Redemption
and Large Transaction Risk |
X |
X |
X |
X |
X |
Repurchase
Agreements |
|
|
|
| |
Securitized
Products |
X |
X |
X |
| |
U.S.
Government and U.S. Government-Sponsored Securities |
X |
X |
X |
| |
Volatility
Mitigation |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
INVESTMENT
STRATEGIES AND RISKS |
PRINCIPAL LIFETIME
2055 |
PRINCIPAL LIFETIME
2060 |
PRINCIPAL LIFETIME
2065 |
PRINCIPAL LIFETIME
2070 |
PRINCIPAL LIFETIME HYBRID INCOME |
Bank
Loans (also known as Senior Floating Rate Interests) |
|
|
|
| |
Convertible
Securities |
|
|
|
| |
Counterparty
Risk |
X |
X |
X |
X |
X |
Derivatives |
X |
X |
X |
X |
X |
Emerging
Markets |
X |
X |
X |
X |
|
Equity
Securities |
X |
X |
X |
X |
X |
•
Growth Style |
X |
X |
X |
X |
X |
•
Smaller Companies |
X |
X |
X |
X |
|
•
Value Style |
X |
X |
X |
X |
X |
Fixed-Income
Securities |
X |
X |
X |
X |
X |
Foreign
Currency |
X |
X |
X |
X |
X |
Foreign
Securities |
X |
X |
X |
X |
X |
Fund
of Funds |
X |
X |
X |
X |
X |
Geographic
Concentration (Municipal Obligations) |
|
|
|
| |
Hedging |
|
|
|
| |
High
Portfolio Turnover |
|
|
|
| |
High
Yield Securities |
|
|
|
| |
Industrial
Revenue Bond |
|
|
|
| |
Industry
Concentration |
|
|
|
| |
Inverse
Floating Rate
Investments |
|
|
|
| |
Investment
Company
Securities |
X |
X |
X |
X |
X |
Leverage |
|
|
|
| |
Municipal
Obligations and AMT-Subject Bonds |
|
|
|
| |
Portfolio
Duration |
X |
X |
X |
X |
X |
Preferred
Securities |
|
|
|
| |
Real
Estate Investment Trusts (“REITs”) |
|
|
|
| |
Real
Estate Securities |
|
|
|
| |
Redemption
and Large Transaction Risk |
X |
X |
X |
X |
X |
Repurchase
Agreements |
|
|
|
| |
Securitized
Products |
|
|
|
| X |
U.S.
Government and U.S. Government-Sponsored Securities |
|
|
|
| X |
Volatility
Mitigation |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
INVESTMENT
STRATEGIES AND RISKS |
PRINCIPAL LIFETIME HYBRID
2015 |
PRINCIPAL LIFETIME HYBRID
2020 |
PRINCIPAL LIFETIME HYBRID
2025 |
PRINCIPAL LIFETIME HYBRID
2030 |
PRINCIPAL LIFETIME HYBRID
2035 |
Bank
Loans (also known as Senior Floating Rate Interests) |
|
|
|
| |
Convertible
Securities |
|
|
|
| |
Counterparty
Risk |
X |
X |
X |
X |
X |
Derivatives |
X |
X |
X |
X |
X |
Emerging
Markets |
|
|
|
| |
Equity
Securities |
X |
X |
X |
X |
X |
•
Growth Style |
X |
X |
X |
X |
X |
•
Smaller Companies |
X |
X |
X |
X |
X |
•
Value Style |
X |
X |
X |
X |
X |
Fixed-Income
Securities |
X |
X |
X |
X |
X |
Foreign
Currency |
X |
X |
X |
X |
X |
Foreign
Securities |
X |
X |
X |
X |
X |
Fund
of Funds |
X |
X |
X |
X |
X |
Geographic
Concentration (Municipal Obligations) |
|
|
|
| |
Hedging |
|
|
|
| |
High
Portfolio Turnover |
|
|
|
| |
High
Yield Securities |
|
|
|
| |
Industrial
Revenue Bond |
|
|
|
| |
Industry
Concentration |
|
|
|
| |
Inverse
Floating Rate
Investments |
|
|
|
| |
Investment
Company
Securities |
X |
X |
X |
X |
X |
Leverage |
|
|
|
| |
Municipal
Obligations and AMT-Subject Bonds |
|
|
|
| |
Portfolio
Duration |
X |
X |
X |
X |
X |
Preferred
Securities |
|
|
|
| |
Real
Estate Investment Trusts (“REITs”) |
|
|
|
| |
Real
Estate Securities |
|
|
|
| |
Redemption
and Large Transaction Risk |
X |
X |
X |
X |
X |
Repurchase
Agreements |
|
|
|
| |
Securitized
Products |
X |
X |
X |
X |
X |
U.S.
Government and U.S. Government-Sponsored Securities |
X |
X |
X |
X |
X |
Volatility
Mitigation |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
INVESTMENT
STRATEGIES AND RISKS |
PRINCIPAL LIFETIME HYBRID
2040 |
PRINCIPAL LIFETIME HYBRID
2045 |
PRINCIPAL LIFETIME HYBRID
2050 |
PRINCIPAL LIFETIME HYBRID
2055 |
PRINCIPAL LIFETIME HYBRID
2060 |
Bank
Loans (also known as Senior Floating Rate Interests) |
|
|
|
| |
Convertible
Securities |
|
|
|
| |
Counterparty
Risk |
X |
X |
X |
X |
X |
Derivatives |
X |
X |
X |
X |
X |
Emerging
Markets |
X |
X |
X |
X |
X |
Equity
Securities |
X |
X |
X |
X |
X |
•
Growth Style |
X |
X |
X |
X |
X |
•
Smaller Companies |
X |
X |
X |
X |
X |
•
Value Style |
X |
X |
X |
X |
X |
Fixed-Income
Securities |
X |
X |
X |
X |
X |
Foreign
Currency |
X |
X |
X |
X |
X |
Foreign
Securities |
X |
X |
X |
X |
X |
Fund
of Funds |
X |
X |
X |
X |
X |
Geographic
Concentration (Municipal Obligations) |
|
|
|
| |
Hedging |
|
|
|
| |
High
Portfolio Turnover |
|
|
|
| |
High
Yield Securities |
|
|
|
| |
Industrial
Revenue Bond |
|
|
|
| |
Industry
Concentration |
|
|
|
| |
Inverse
Floating Rate
Investments |
|
|
|
| |
Investment
Company
Securities |
X |
X |
X |
X |
X |
Leverage |
|
|
|
| |
Municipal
Obligations and AMT-Subject Bonds |
|
|
|
| |
Portfolio
Duration |
X |
X |
X |
X |
X |
Preferred
Securities |
|
|
|
| |
Real
Estate Investment Trusts (“REITs”) |
|
|
|
| |
Real
Estate Securities |
|
|
|
| |
Redemption
and Large Transaction Risk |
X |
X |
X |
X |
X |
Repurchase
Agreements |
|
|
|
| |
Securitized
Products |
X |
|
|
| |
U.S.
Government and U.S. Government-Sponsored Securities |
X |
|
|
| |
Volatility
Mitigation |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
INVESTMENT
STRATEGIES AND RISKS |
PRINCIPAL LIFETIME HYBRID
2065 |
PRINCIPAL LIFETIME HYBRID
2070 |
REAL
ESTATE SECURITIES |
SAM BALANCED |
SAM CONSERVATIVE BALANCED |
Bank
Loans (also known as Senior Floating Rate Interests) |
|
|
|
| |
Convertible
Securities |
|
|
|
| |
Counterparty
Risk |
X |
X |
|
| |
Derivatives |
X |
X |
|
| |
Emerging
Markets |
X |
X |
| X |
X |
Equity
Securities |
X |
X |
X |
X |
X |
•
Growth Style |
X |
X |
X |
X |
X |
•
Smaller Companies |
X |
X |
X |
X |
X |
•
Value Style |
X |
X |
X |
X |
X |
Fixed-Income
Securities |
X |
X |
| X |
X |
Foreign
Currency |
X |
X |
| X |
X |
Foreign
Securities |
X |
X |
| X |
X |
Fund
of Funds |
X |
X |
| X |
X |
Geographic
Concentration (Municipal Obligations) |
|
|
|
| |
Hedging |
|
|
|
| |
High
Portfolio Turnover |
| X |
|
| |
High
Yield Securities |
|
|
|
| X |
Industrial
Revenue Bond |
|
|
|
| |
Industry
Concentration |
|
| X |
| |
Inverse
Floating Rate
Investments |
|
|
|
| |
Investment
Company
Securities |
X |
X |
| X |
X |
Leverage |
|
|
|
| |
Municipal
Obligations and AMT-Subject Bonds |
|
|
|
| |
Portfolio
Duration |
X |
X |
| X |
X |
Preferred
Securities |
|
|
|
| |
Real
Estate Investment Trusts (“REITs”) |
|
| X |
| |
Real
Estate Securities |
|
| X |
| |
Redemption
and Large Transaction Risk |
X |
X |
X |
X |
X |
Repurchase
Agreements |
|
|
|
| |
Securitized
Products |
|
|
| X |
X |
U.S.
Government and U.S. Government-Sponsored Securities |
|
|
|
| |
Volatility
Mitigation |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
INVESTMENT
STRATEGIES AND RISKS |
SAM CONSERVATIVE GROWTH |
SAM
FLEXIBLE INCOME |
SAM
STRATEGIC GROWTH |
SHORT-TERM INCOME |
SMALLCAP |
Bank
Loans (also known as Senior Floating Rate Interests) |
|
|
|
| |
Convertible
Securities |
|
|
|
| |
Counterparty
Risk |
|
|
|
| |
Derivatives |
|
|
| X |
|
Emerging
Markets |
X |
| X |
| |
Equity
Securities |
X |
X |
X |
| X |
•
Growth Style |
X |
X |
X |
| |
•
Smaller Companies |
X |
X |
X |
| X |
•
Value Style |
X |
X |
X |
| |
Fixed-Income
Securities |
X |
X |
| X |
|
Foreign
Currency |
X |
| X |
| |
Foreign
Securities |
X |
X |
X |
X |
|
Fund
of Funds |
X |
X |
X |
| |
Geographic
Concentration (Municipal Obligations) |
|
|
|
| |
Hedging |
|
|
|
| |
High
Portfolio Turnover |
|
|
|
| |
High
Yield Securities |
| X |
|
| |
Industrial
Revenue Bond |
|
|
|
| |
Industry
Concentration |
|
|
|
| |
Inverse
Floating Rate
Investments |
|
|
|
| |
Investment
Company
Securities |
X |
X |
X |
| |
Leverage |
|
|
|
| |
Municipal
Obligations and AMT-Subject Bonds |
|
|
|
| |
Portfolio
Duration |
X |
X |
| X |
|
Preferred
Securities |
|
|
|
| |
Real
Estate Investment Trusts (“REITs”) |
|
|
|
| |
Real
Estate Securities |
|
|
| X |
|
Redemption
and Large Transaction Risk |
X |
X |
X |
X |
X |
Repurchase
Agreements |
|
|
|
| |
Securitized
Products |
| X |
| X |
|
U.S.
Government and U.S. Government-Sponsored Securities |
|
|
| X |
|
Volatility
Mitigation |
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
INVESTMENT
STRATEGIES AND RISKS |
SMALLCAP GROWTH
I |
SMALLCAP S&P
600 INDEX |
SMALLCAP VALUE
II |
TAX-EXEMPT BOND |
Bank
Loans (also known as Senior Floating Rate Interests) |
|
|
| |
Convertible
Securities |
|
|
| |
Counterparty
Risk |
|
|
| X |
Derivatives |
| X |
| |
Emerging
Markets |
|
|
| |
Equity
Securities |
X |
X |
X |
|
•
Growth Style |
X |
|
| |
•
Smaller Companies |
X |
X |
X |
|
•
Value Style |
|
| X |
|
Fixed-Income
Securities |
|
|
| X |
Foreign
Currency |
|
|
| |
Foreign
Securities |
|
|
| |
Fund
of Funds |
|
|
| |
Geographic
Concentration (Municipal Obligations) |
|
|
| X |
Hedging |
|
|
| |
High
Portfolio Turnover |
|
|
| |
High
Yield Securities |
|
|
| X |
Industrial
Revenue Bond |
|
|
| X |
Industry
Concentration |
|
X
(1) |
| |
Inverse
Floating Rate
Investments |
|
|
| X |
Investment
Company
Securities |
| X |
| |
Leverage |
|
|
| X |
Municipal
Obligations and AMT-Subject Bonds |
|
|
| X |
Portfolio
Duration |
|
|
| X |
Preferred
Securities |
|
|
| |
Real
Estate Investment Trusts (“REITs”) |
|
|
| |
Real
Estate Securities |
|
| X |
|
Redemption
and Large Transaction Risk |
X |
X |
X |
X |
Repurchase
Agreements |
|
|
| |
Securitized
Products |
|
|
| |
U.S.
Government and U.S. Government-Sponsored Securities |
|
|
| |
Volatility
Mitigation |
|
|
| |
|
|
|
|
| |
(1) |
The
Fund will not concentrate (i.e., invest more than 25% of its assets) its
investments in a particular industry except to the extent the Index is so
concentrated. |
Bank
Loans (also known as Senior Floating Rate Interests)
Bank
loans typically hold the most senior position in the capital structure of a
business entity (the “Borrower”), are secured by specific collateral, and have a
claim on the Borrower’s assets and/or stock that is senior to that held by the
Borrower’s unsecured subordinated debtholders and stockholders. The proceeds of
bank loans primarily are used to finance leveraged buyouts, recapitalizations,
mergers, acquisitions, stock repurchases, dividends, and, to a lesser extent, to
finance internal growth and for other corporate purposes. Bank loans are
typically structured and administered by a financial institution that acts as
the agent of the lenders participating in the bank loan. The Funds may purchase
bank loans that are rated below-investment-grade (sometimes called “junk”) or
will be comparable if unrated, which means they are more likely to default than
investment-grade loans. A default could lead to non-payment of income, which
would result in a reduction of income to the fund, and there can be no assurance
that the liquidation of any collateral would satisfy the Borrower’s obligation
in the event of non-payment of scheduled interest or principal payments, or that
such collateral could be readily liquidated. Most bank loans are not traded on
any national securities exchange. Bank loans generally have less liquidity than
investment-grade bonds, and there may be less public information available about
them. Bank loan interests may not be considered “securities,” and purchasers,
therefore, may not be entitled to rely on the anti-fraud protections of the
federal securities laws.
The
primary and secondary market for bank loans may be subject to irregular trading
activity, wide bid/ask spreads, and extended trade settlement periods, which may
cause a fund to be unable to realize full value and, thus, cause a material
decline in a fund’s net asset value. Because transactions in bank loans may be
subject to extended settlement periods, a fund may not receive proceeds from the
sale of a bank loan for a period of time after the sale. As a result, sale
proceeds may not be available to make additional investments or to meet a fund’s
redemption obligations for a period of time after the sale of the bank loans,
which could lead to a fund having to sell other investments, borrow to meet
obligations, or borrow to remain fully invested while awaiting
settlement.
Bank
loans pay interest at rates that are periodically reset by reference to a base
lending rate plus a spread. These base lending rates are generally the prime
rate offered by a designated U.S. bank, the Secured Overnight Financing Rate
(SOFR), or the prime rate offered by one or more major U.S. banks.
Bank
loans generally are subject to mandatory and/or optional prepayment. Because of
these prepayment conditions and because there may be significant economic
incentives for the borrower to repay, prepayments may occur.
Convertible
Securities
Convertible
securities are usually fixed-income securities that a fund has the right to
exchange for equity securities at a specified conversion price. Convertible
securities could also include corporate bonds, notes, or preferred stocks of
U.S. or foreign issuers. Convertible securities allow a fund to realize
additional returns if the market price of the equity securities exceeds the
conversion price. For example, a fund may hold fixed-income securities that are
convertible into shares of common stock at a conversion price of $10 per share.
If the market value of the shares of common stock reached $12, the fund could
realize an additional $2 per share by converting its fixed-income
securities.
Convertible
securities have lower yields than comparable fixed-income securities. In
addition, at the time a convertible security is issued, the conversion price
exceeds the market value of the underlying equity securities. Thus, convertible
securities may provide lower returns than non-convertible fixed-income
securities or equity securities depending upon changes in the price of the
underlying equity securities. However, convertible securities permit a fund to
realize some of the potential appreciation of the underlying equity securities
with less risk of losing its initial investment.
Depending
on the features of the convertible security, a fund will treat a convertible
security as a fixed-income security, equity security, or preferred security for
purposes of investment policies and limitations because of the unique
characteristics of convertible securities. Funds that invest in convertible
securities may invest in convertible securities that are below investment grade
(sometimes referred to as “junk”). Many convertible securities are relatively
illiquid.
Counterparty
Risk
Counterparty
risk is the risk that the counterparty to a contract or other obligation will be
unable or unwilling to honor its obligations. If a counterparty fails to meet
its contractual obligations, goes bankrupt, or otherwise experiences a business
interruption, a fund could miss investment opportunities or otherwise hold
investments it would prefer to sell, resulting in losses for the fund. In
addition, a fund may suffer losses if a counterparty fails to comply with
applicable laws or other requirements. Counterparty risk is pronounced during
unusually adverse market conditions and is particularly acute in environments in
which financial services firms are exposed to systemic risks.
Derivatives
Generally,
a derivative is a financial arrangement, the value of which is derived from, or
based on, a traditional security, asset, or market index. A fund may invest in
certain derivative strategies to earn income, manage or adjust the risk profile
of the fund, replace more direct investments, or obtain exposure to certain
markets. A fund may enter into forward commitment agreements, which call for the
fund to purchase or sell a security on a future date at a fixed price. A fund
may also enter into contracts to sell its investments either on demand or at a
specific interval.
The
risks associated with derivative investments include:
•increased
volatility of a fund and/or the failure of the investment to mitigate volatility
as intended;
•the
inability of those managing investments of the fund to correctly predict the
direction of securities prices, interest rates, currency exchange rates, asset
values, and other economic factors;
•losses
caused by unanticipated market movements, which may be substantially greater
than a fund's initial investment and are potentially unlimited;
•the
possibility that there may be no liquid secondary market, which may make it
difficult or impossible to close out a position when desired;
•the
possibility that the counterparty may fail to perform its obligations;
and
•the
inability to close out certain hedged positions to avoid adverse tax
consequences.
There
are many different types of derivatives and many different ways to use them. The
specific derivatives that are principal strategies of each Fund are listed in
its Fund Summary.
•Credit
default swap agreements may be entered into by a fund as a “buyer” or “seller”
of credit protection. Credit default swap agreements involve special risks
because they may be difficult to value, are highly susceptible to liquidity and
credit risk, and generally pay a return to the party that has paid the premium
only in the event of an actual default by the issuer of the underlying
obligation (as opposed to a credit downgrade or other indication of financial
difficulty). Credit default swaps can increase credit risk because a fund has
exposure to both the issuer of the referenced obligation and the counterparty to
the credit default swap.
•Foreign
currency contracts (such as foreign currency options and foreign currency
forward and swap agreements) may be used by funds to increase exposure to a
foreign currency or to shift exposure to foreign currency fluctuations from one
country to another. A forward currency contract involves a privately negotiated
obligation to purchase or sell a specific currency at a future date at a price
set in the contract. For currency contracts, there is also a risk of government
action through exchange controls that would restrict the ability of a fund to
deliver or receive currency.
•Forwards,
futures contracts, and options thereon (including commodities futures); options
(including put or call options); and swap agreements and over-the-counter swap
agreements (e.g., interest rate swaps, total return swaps, and credit default
swaps) may be used by funds for hedging purposes in order to try to mitigate or
protect against potential losses due to changing interest rates, securities
prices, asset values, currency exchange rates, and other market conditions;
non-hedging purposes to seek to increase the fund’s income or otherwise enhance
return; and as a low-cost method of gaining exposure to a particular market
without investing directly in those securities or assets.
These
derivative investments are subject to special risk considerations, particularly
the imperfect correlation between the change in market value of the instruments
held by a fund and the price of the derivative instrument. If a fund has
insufficient cash, it may have to sell securities from its portfolio to meet
daily variation margin requirements, even when it may be disadvantageous to do
so. Options and swap agreements also involve counterparty risk. With respect to
options, there may be difference in trading hours for the options markets and
the markets for the underlying securities (rate movements can take place in the
underlying markets that cannot be reflected in the options markets) and an
insufficient liquid secondary market for particular options.
•Index/structured
securities are derivative securities whose value or performance is linked to
other equity securities (such as depositary receipts), currencies, interest
rates, indices, or other financial indicators (reference indices).
Emerging
Markets
The
Funds consider a security to be tied economically to an emerging market if the
issuer or guarantor of the security has its principal place of business or
principal office in an emerging market, has its principal securities trading
market in an emerging market, or derives a majority of its revenue from emerging
markets. The Funds also consider a security to be tied economically to an
emerging market if the currency of settlement of the security is the currency of
the emerging market.
Usually,
the term “emerging market” (also called a “developing market”) means any market
that is considered to be an emerging market by the international financial
community (such as markets tied to securities included in the MSCI Emerging
Markets Index or Bloomberg Emerging Markets USD Aggregate Bond Index). Emerging
markets generally exclude the U.S., Canada, Japan, Hong Kong, Singapore,
Australia, New Zealand, and most nations located in Western Europe.
Investments
in companies in emerging markets are subject to higher risks than investments in
companies in more developed markets. These risks include:
•increased
social, political, and economic instability;
•a
smaller market for these securities and low or nonexistent trading volume that
results in a lack of liquidity and greater price volatility;
•lack
of publicly available information, including reports of payments of dividends or
interest on outstanding securities;
•foreign
government policies that may restrict opportunities, including restrictions on
investment in issuers or industries deemed sensitive to national
interests;
•relatively
new capital market structure or market-oriented economy;
•the
possibility that recent favorable economic developments may be slowed or
reversed by unanticipated political or social events in these
countries;
•restrictions
that may make it difficult or impossible for a fund to vote proxies, exercise
shareholder rights, pursue legal remedies, and obtain judgments in foreign
courts; and
•possible
losses through the holding of securities in domestic and foreign custodial banks
and depositories.
In
addition, many developing markets have experienced substantial and, in some
periods, extremely high rates of inflation for many years. Inflation and rapid
fluctuations in inflation rates have had and may continue to have negative
effects on the economies, currencies, interest rates, and securities markets of
those markets.
Repatriation
of investment income, capital, and proceeds of sales by foreign investors may
require governmental registration and/or approval in some developing markets. A
fund could be adversely affected by delays in or a refusal to grant any required
governmental registration or approval for repatriation.
Further,
the economies of developing markets generally are heavily dependent upon
international trade and, accordingly, have been and may continue to be adversely
affected by trade barriers, exchange controls, managed adjustments in relative
currency values, and other protectionist measures imposed or negotiated by the
countries with which they trade.
The
SEC, the U.S. Department of Justice, and other U.S. authorities may be limited
in their ability to pursue bad actors, including instances of fraud in emerging
markets. For example, in certain emerging markets, there are significant legal
obstacles to obtaining information needed for investigations or litigation.
Similar limitations apply to the pursuit of actions against individuals,
including officers, who may have engaged in fraud or wrongdoing. In addition,
local authorities often are constrained in their ability to assist U.S.
authorities and overseas investors more generally. There are also legal or other
obstacles to seeking access to funds in a foreign country.
Equity
Securities
Equity
securities include common stocks, convertible securities, depositary receipts,
rights (an offering of common stock to investors who currently own shares, which
entitle them to buy subsequent issues at a discount from the offering price),
and warrants (the right to purchase securities from the issuer at a specified
price, normally higher than the current market price). Common stocks, the most
familiar type, represent an equity (ownership) interest in a corporation. The
value of a company’s stock may fall as a result of factors directly relating to
that company, such as decisions made by its management or lower demand for the
company’s products or services. A stock’s value may also fall because of factors
affecting not just the company, but also companies in the same industry or in a
number of different industries, such as increases in production costs. The value
of a company’s stock may also be affected by changes in financial markets that
are relatively unrelated to the company or its industry, such as changes in
interest rates or currency exchange rates. In addition, a company’s stock
generally pays dividends only after the company invests in its own business and
makes required payments to holders of its bonds and other debt. For this reason,
the value of a company’s stock will usually react more strongly than its bonds
and other debt to actual or perceived changes in the company’s financial
condition or prospects.
Some
funds focus their investments on certain market capitalization ranges. Market
capitalization is defined as total current market value of a company’s
outstanding equity securities. The market capitalization of companies in a
fund’s portfolios and their related indexes will change over time, and, except
to the extent consistent with its principal investment strategies (for example,
for an index fund that uses a replication strategy), a fund will not
automatically sell a security just because it falls outside of the market
capitalization range of its index(es).
Growth
Style
The
prices of growth stocks may be based largely on expectations of future earnings,
and their prices can decline rapidly and significantly in reaction to negative
news about such factors as earnings, revenues, the economy, political
developments, or other news. Growth stocks may underperform value stocks and
stocks in other broad style categories (and the stock market as a whole) over
any period of time and may shift in and out of favor with investors generally,
sometimes rapidly, depending on changes in market, economic, and other factors.
As a result, a fund that holds substantial investments in growth stocks may
underperform other funds that invest more broadly or favor different investment
styles. Because growth companies typically reinvest their earnings, growth
stocks typically do not pay dividends at levels associated with other types of
stocks, if at all.
Smaller
Companies
Investments
in companies with smaller market capitalizations may involve greater risks and
price volatility (wide, rapid fluctuations) than investments in larger, more
mature companies. Small company stocks may decline in price as large company
stocks rise, or rise in price while larger company stocks decline. The net asset
value of a fund that invests a substantial portion of its assets in small
company stocks may be more volatile than the net asset value of a fund that
invests solely in larger company stocks. Small companies may be less significant
within their industries and may be at a competitive disadvantage relative to
their larger competitors. Smaller companies may be less mature than larger
companies. At this earlier stage of development, the companies may have limited
product lines, reduced market liquidity for their shares, limited financial
resources, or less depth in management than larger or more established
companies. While smaller companies may be subject to these additional risks,
they may also realize more substantial growth than larger or more established
companies.
Unseasoned
issuers are companies with a record of less than three years continuous
operation, including the operation of predecessors and parents. Many unseasoned
issuers also may be small companies and involve the risks and price volatility
associated with smaller companies. Unseasoned issuers by their nature have only
a limited operating history that can be used for evaluating the company’s growth
prospects. As a result, these securities may place a greater emphasis on current
or planned product lines and the reputation and experience of the company’s
management and less emphasis on fundamental valuation factors than would be the
case for more mature growth companies.
Value
Style
Value
stocks present the risk that they may decline in price or never reach their
expected full market value because the market fails to recognize the stock’s
intrinsic worth. Value stocks may underperform growth stocks and stocks in other
broad style categories (and the stock market as a whole) over any period of time
and may shift in and out of favor with investors generally, sometimes rapidly,
depending on changes in market, economic, and other factors. As a result, a fund
that holds substantial investments in value stocks may underperform other funds
that invest more broadly or favor different investment styles.
Fixed-Income
Securities
Fixed-income
securities include bonds and other debt instruments that are used by issuers to
borrow money from investors (examples include corporate bonds, convertible
securities, asset-and mortgage-backed securities, and municipal, agency, and
U.S. government securities). The issuer of a fixed-income security generally
pays the investor a fixed, variable, or floating rate of interest. The amount
borrowed must be repaid at maturity. Some debt securities, such as zero coupon
bonds, do not pay current interest, but are sold at a discount from their face
values.
Fixed-income
securities are sensitive to changes in interest rates. Interest rate changes can
be sudden and unpredictable, and are influenced by a number of factors,
including governmental policy, monetary policy, inflation expectations,
perceptions of risk, and supply and demand for fixed-income securities. In
general, fixed-income security prices rise when interest rates fall and fall
when interest rates rise. An increase in interest rates from a low interest rate
environment may lead to heightened volatility, rapid sales of fixed-income
securities, and redemptions alongside reduced liquidity and dealer market-making
capacity in fixed-income markets.
If
interest rates fall, issuers of callable bonds may call (repay) securities with
high interest rates before their maturity dates; this is known as call risk. In
this case, a fund would likely reinvest the proceeds from these securities at
lower interest rates, resulting in a decline in the fund's income. Very low
interest rates, including rates that fall below zero (where banks charge for
depositing money), may detract from a Fund’s performance and its ability to
maintain positive returns to the extent the Fund is exposed to such interest
rates. To the extent a Fund holds an investment with a negative interest rate to
maturity, the Fund would generate a negative return on that investment. Floating
rate securities generally are less sensitive to interest rate changes but may
decline in value if their interest rates do not rise as much, or as quickly, as
interest rates in general. Conversely, floating rate securities will not
generally increase in value if interest rates decline.
In
June 2023, the Secured Overnight Financing Rate (“SOFR”) replaced the London
InterBank Offered Rate (“LIBOR”) as the benchmark interest rate for
dollar-denominated derivatives and loans in the United States pursuant to the
Adjustable Interest Rate (LIBOR) Act. Prior to the adoption of SOFR, LIBOR was
the globally accepted benchmark for interest rates; however, the United
Kingdom’s Financial Conduct Authority, which regulated LIBOR, ceased publication
of non-U.S. dollar LIBOR, 1-week U.S. dollar LIBOR, and 2-month U.S. dollar
LIBOR rates on December 31, 2021, and the remaining, most widely used U.S.
dollar LIBOR rates stopped being published on June 30, 2023. Countries
outside of the United States have opted to use different alternatives to LIBOR
than SOFR. The effect of LIBOR's discontinuation and replacement on new or
existing financial instruments or operational processes will vary depending on a
number of factors, including, for example, fallback provisions in contracts,
replacement language in contracts, and legislative action. In addition, LIBOR’s
discontinuation and replacement may affect the value, liquidity, or return on
certain Fund investments and may result in costs in connection with closing out
positions and entering into new trades. These impacts are likely to persist
until new reference rates and fallbacks for both legacy and new instruments and
contracts are commercially accepted and market practices become settled. SOFR is
calculated by short-term repurchase agreements, backed by U.S. Treasuries. LIBOR
was a forward-looking rate, while SOFR reflects an overnight rate, making SOFR
much less susceptible to market fluctuations and manipulations than
LIBOR.
Fixed-income
securities are also affected by the credit quality of the issuer.
Investment-grade debt securities are medium and high-quality securities. Some
bonds, such as lower grade or “junk” bonds, may have speculative characteristics
and may be particularly sensitive to economic conditions and the financial
condition of the issuers. Credit risk refers to the possibility that the issuer
of the security will not be able to make principal and interest payments when
due.
Additionally,
a Fund's investments in companies with smaller market capitalizations may
involve greater risks, price volatility (wide, rapid fluctuations), and less
liquidity than investments in larger, more mature companies.
Foreign
Currency
Certain
of a fund’s investments will be denominated in foreign currencies or traded in
securities markets in which settlements are made in foreign currencies. Any
income on such investments is generally paid to a fund in foreign currencies. In
addition, funds may engage in foreign currency transactions for both hedging and
investment purposes, as well as to increase exposure to a foreign currency or to
shift exposure to foreign currency fluctuations from one country to
another.
The
value of foreign currencies relative to the U.S. dollar varies continually,
causing changes in the dollar value of a fund’s portfolio investments (even if
the local market price of the investments is unchanged) and changes in the
dollar value of a fund’s income available for distribution to its shareholders.
The effect of changes in the dollar value of a foreign currency on the dollar
value of a fund’s assets and on the net investment income available for
distribution may be favorable or unfavorable. Transactions in non-U.S.
currencies are also subject to many of the risks of investing in foreign
(non-U.S.) securities; for example, changes in foreign economies and political
climates are more likely to affect a fund that has foreign currency exposure
than a fund that invests exclusively in U.S. companies and currency. There also
may be less government supervision of foreign markets, resulting in non-uniform
accounting practices and less publicly available information. Transactions in
foreign currencies, foreign currency denominated debt, and certain foreign
currency options, futures contracts, and forward contracts (and similar
instruments) may give rise to ordinary income or loss to the extent such income
or loss results from fluctuations in the value of the foreign currency
concerned.
A
fund may incur costs in connection with conversions between various currencies.
In addition, a fund may be required to liquidate portfolio assets, or may incur
increased currency conversion costs, to compensate for a decline in the dollar
value of a foreign currency occurring between the time when a fund declares and
pays a dividend, or between the time when a fund accrues and pays an operating
expense in U.S. dollars. To protect against a change in the foreign currency
exchange rate between the date on which a fund contracts to purchase or sell a
security and the settlement date for the purchase or sale, to gain exposure to
one or more foreign currencies, or to “lock in” the equivalent of a dividend or
interest payment in another currency, a fund might purchase or sell a foreign
currency on a spot (i.e., cash) basis at the prevailing spot rate.
Currency
hedging involves some of the same general risks and considerations as other
transactions with similar instruments (i.e., derivative instruments) and
hedging. Currency transactions are also subject to additional risks. Because
currency control is of great importance to the issuing governments and
influences economic planning and policy, purchases and sales of currency and
related instruments can be adversely affected by government exchange controls,
limitations or restrictions on repatriation of currency, and manipulations or
exchange restrictions imposed by governments. These forms of governmental
actions can result in losses to a fund if it is unable to deliver or receive
currency or monies in settlement of obligations. They could also cause hedges
the fund has entered into to be rendered useless, resulting in full currency
exposure as well as incurring transaction costs. Settlement of a currency
forward contract for the purchase of most currencies must occur at a bank based
in the issuing nation. The ability to establish and close out positions on
trading options on currency futures contracts is subject to the maintenance of a
liquid market that may not always be available.
Foreign
Securities
The
Funds consider a security to be tied economically to countries outside the U.S.
(a “foreign security”) if the issuer or guarantor of the security has its
principal place of business or principal office outside the U.S., has its
principal securities trading market outside the U.S., or derives a majority of
its revenue from outside the U.S. The Funds also consider a security to be a
foreign security if the settlement currency for the security is currency of a
country outside of the U.S.
There
may be less publicly available information about foreign companies than U.S.
companies, and information about foreign securities in which the Funds invest
may be less reliable or complete. Foreign companies, including those listed on
U.S. securities exchanges, may not be subject to the same uniform accounting,
auditing, and financial reporting practices as are required of U.S. companies
with respect to such matters as insider trading rules, tender offer regulation,
accounting standards or auditor oversight, stockholder proxy requirements, and
the requirements mandating timely and accurate disclosure of information. For
example, the Chinese government has taken positions that prevent the Public
Company Accounting Oversight Board from inspecting the audit work and practices
of accounting firms in mainland China and Hong Kong for compliance with U.S. law
and professional standards. In addition, securities of many foreign companies
are less liquid and more volatile than securities of comparable U.S. companies.
Commissions on foreign securities exchanges may be generally higher than those
on U.S. exchanges.
Foreign
markets also have different clearance and settlement procedures than those in
U.S. markets. In certain markets, there have been times when settlements have
been unable to keep pace with the volume of securities transactions, making it
difficult to conduct these transactions. Delays in settlement could result in
temporary periods when a portion of fund assets is not invested and earning no
return. If a fund is unable to make intended security purchases due to
settlement problems, the fund may miss attractive investment opportunities. In
addition, a fund may incur a loss as a result of a decline in the value of its
portfolio if it is unable to sell a security.
With
respect to certain foreign countries, there is the possibility of
nationalization, expropriation, or confiscatory taxation, political or social
instability, or diplomatic developments that could affect a fund’s investments
in those countries. In addition, a fund may also suffer losses due to differing
accounting practices and treatments. Investments in foreign securities are
subject to laws of the foreign country that may limit the amount and types of
foreign investments. Changes of governments or of economic or monetary policies,
in the U.S. or abroad, changes in dealings between nations, currency
convertibility, or exchange rates could result in investment losses for a
fund.
Foreign
securities are often traded with less frequency and volume and, therefore, may
have greater price volatility than is the case with many U.S. securities.
Brokerage commissions, custodial services, and other costs relating to
investment in foreign countries are generally more expensive than in the U.S.
Though the fund intends to acquire the securities of foreign issuers where there
are public trading markets, economic or political turmoil in a country in which
a fund has a significant portion of its assets or deterioration of the
relationship between the U.S. and a foreign country may reduce the liquidity of
a fund’s portfolio. The fund may have difficulty meeting a large number of
redemption requests. Furthermore, there may be difficulties in obtaining or
enforcing judgments against foreign issuers.
A
fund may invest in a foreign company by purchasing depositary receipts.
Depositary receipts are certificates of ownership of shares in a foreign-based
issuer held by a bank or other financial institution. They are alternatives to
purchasing the underlying security but are subject to the foreign securities
risks to which they relate.
A
fund may file claims to recover foreign withholding taxes on dividend and
interest income (if any) received from issuers in certain countries and capital
gains on the disposition of stocks or securities where such withholding tax
reclaim is possible. Whether or when a fund will receive a withholding tax
refund is within the control of the tax authorities in such countries. Where a
fund expects to recover withholding taxes, the net asset value of a fund
generally includes accruals for such tax refunds. If the likelihood of recovery
materially decreases, accruals in the fund’s net asset value for such refunds
may be written down partially or in full, which will adversely affect the fund’s
net asset value. Shareholders in the fund at the time an accrual is written down
will bear the impact of the resulting reduction in net asset value regardless of
whether they were shareholders during the accrual period. Conversely, if a fund
receives a tax refund that has not been previously accrued, shareholders in the
fund at the time of the successful recovery will benefit from the resulting
increase in the fund’s net asset value. Shareholders who sold their shares prior
to such time will not benefit from such increase in the fund’s net asset
value.
If
a fund’s portfolio invests significantly in a certain geographic region, any
negative development affecting that region will have a greater impact on the
fund than a fund that is not as heavily invested in that region. For example,
with respect to funds that invest significantly in China:
•Investing
in China involves certain heightened risks and considerations, including, among
others: frequent trading suspensions and government interventions (including by
nationalizing assets); currency exchange rate fluctuations or blockages; limits
on using brokers and on foreign ownership; different financial reporting
standards, as described above; higher dependence on exports and international
trade; political and social instability; infectious disease outbreaks; regional
and global conflicts; increased trade tariffs, embargoes, and other trade
limitations; custody and other risks associated with programs used to access
Chinese securities; and uncertainties in tax rules that could result in
unexpected tax liabilities for the Fund. Significant portions of the Chinese
securities markets may become rapidly illiquid, as Chinese issuers have the
ability to suspend the trading of their equity securities. Moreover, actions by
the U.S. government, such as delisting of certain Chinese companies from U.S.
securities exchanges or otherwise restricting their operations in the U.S., may
negatively impact the value of such securities held by the funds.
Fund
of Funds
The
performance and risks of a fund of funds directly correspond to the performance
and risks of the underlying funds in which the fund invests.
As
of October 31, 2023, the Principal LifeTime Funds, Principal LifeTime Hybrid
Funds, and SAM Portfolios assets were allocated among the underlying funds as
identified in the tables below.
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| |
Underlying
Fund |
Principal
LifeTime Strategic Income Fund |
Principal
LifeTime 2015 Fund |
Principal
LifeTime 2020 Fund |
Principal
LifeTime 2025 Fund |
Principal
LifeTime 2030 Fund |
Principal
LifeTime 2035 Fund |
Blue
Chip Fund |
3.7% |
3.9% |
4.7% |
5.6% |
6.7% |
7.6% |
Core
Fixed Income Fund |
34.1% |
33.6% |
31.8% |
30.2% |
34.6% |
26.2% |
Diversified
International Fund |
5.0% |
5.2% |
6.4% |
7.4% |
9.0% |
10.5% |
Diversified
Real Asset Fund |
2.3% |
2.3% |
2.2% |
2.5% |
— |
— |
Equity
Income Fund |
3.2% |
3.3% |
4.0% |
4.8% |
5.7% |
6.6% |
High
Income Fund |
6.8% |
6.7% |
6.0% |
5.2% |
4.8% |
4.3% |
Inflation
Protection Fund |
6.3% |
6.2% |
5.6% |
4.9% |
— |
— |
International
Small Company Fund |
0.8% |
0.8% |
0.9% |
1.1% |
1.4% |
1.6% |
LargeCap
Growth Fund I |
3.7% |
3.8% |
4.6% |
5.5% |
6.6% |
7.5% |
LargeCap
S&P 500 Index Fund |
3.5% |
3.7% |
4.5% |
5.4% |
6.1% |
7.2% |
LargeCap
Value Fund III |
3.2% |
3.3% |
4.1% |
4.9% |
5.8% |
6.7% |
MidCap
Fund |
0.6% |
0.6% |
0.7% |
0.9% |
1.1% |
1.5% |
MidCap
Growth Fund III |
1.5% |
1.6% |
2.0% |
2.2% |
2.7% |
2.9% |
MidCap
Value Fund I |
2.1% |
2.2% |
2.7% |
3.1% |
3.8% |
4.4% |
Origin
Emerging Markets Fund |
1.3% |
1.4% |
1.6% |
1.9% |
2.3% |
2.6% |
Overseas
Fund |
2.7% |
3.0% |
3.5% |
4.0% |
4.9% |
5.6% |
Real
Estate Securities Fund |
— |
— |
— |
— |
2.2% |
2.2% |
Short-Term
Income Fund |
17.9% |
17.1% |
13.1% |
8.5% |
— |
— |
SmallCap
Growth Fund I |
0.6% |
0.6% |
0.8% |
0.9% |
1.1% |
1.2% |
SmallCap
Value Fund II |
0.7% |
0.7% |
0.8% |
1.0% |
1.2% |
1.4% |
Total |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
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| |
Underlying
Fund |
Principal
LifeTime 2040 Fund |
Principal
LifeTime 2045 Fund |
Principal
LifeTime 2050 Fund |
Principal
LifeTime 2055 Fund |
Principal
LifeTime 2060 Fund |
Principal
LifeTime 2065 Fund |
Principal
LifeTime 2070 Fund |
Blue
Chip Fund |
8.9% |
9.9% |
10.6% |
10.6% |
10.6% |
10.5% |
10.3% |
Core
Fixed Income Fund |
15.9 |
8.5 |
3.1 |
3.1 |
3.1 |
3.1 |
3.2 |
Diversified
International Fund |
12.2 |
13.8 |
14.4 |
14.7 |
14.7 |
14.9 |
14.9 |
Equity
Income Fund |
7.7 |
8.5 |
9.2 |
9.2 |
9.2 |
9.2 |
9.2 |
High
Income Fund |
3.1 |
2.2 |
1.1 |
1.1 |
1.1 |
1.1 |
1.1 |
International
Small Company Fund |
1.9 |
2.1 |
2.3 |
2.3 |
2.3 |
2.3 |
2.5 |
LargeCap
Growth Fund I |
8.8 |
9.7 |
10.5 |
10.4 |
10.4 |
10.4 |
10.1 |
LargeCap
S&P 500 Index Fund |
8.6 |
9.3 |
10.0 |
10.0 |
10.0 |
10.0 |
9.8 |
LargeCap
Value Fund III |
7.8 |
8.6 |
9.3 |
9.3 |
9.3 |
9.3 |
9.3 |
MidCap
Fund |
1.7 |
1.9 |
2.1 |
2.0 |
2.0 |
2.0 |
2.0 |
MidCap
Growth Fund III |
3.4 |
3.7 |
4.0 |
4.0 |
4.0 |
4.1 |
4.1 |
MidCap
Value Fund I |
5.1 |
5.7 |
6.1 |
6.1 |
6.1 |
6.1 |
6.2 |
Origin
Emerging Markets Fund |
3.1 |
3.4 |
3.7 |
3.7 |
3.7 |
3.7 |
3.7 |
Overseas
Fund |
6.5 |
7.1 |
7.7 |
7.6 |
7.6 |
7.4 |
7.2 |
Real
Estate Securities Fund |
2.2 |
2.2 |
2.2 |
2.2 |
2.2 |
2.2 |
2.3 |
SmallCap
Growth Fund I |
1.5 |
1.6 |
1.8 |
1.8 |
1.8 |
1.8 |
2.0 |
SmallCap
Value Fund II |
1.6 |
1.8 |
1.9 |
1.9 |
1.9 |
1.9 |
2.1 |
Total |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
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| |
Underlying
Fund |
Principal
LifeTime Hybrid Income Fund |
Principal
LifeTime Hybrid 2015 Fund |
Principal
LifeTime Hybrid 2020 Fund |
Principal
LifeTime Hybrid 2025 Fund |
Principal
LifeTime Hybrid 2030 Fund |
Principal
LifeTime Hybrid 2035 Fund |
Bond
Market Index Fund |
33.9% |
33.5% |
31.6% |
30.0% |
34.8% |
26.2% |
Diversified
International Fund |
8.1 |
8.5 |
10.4 |
12.2 |
14.5 |
16.8 |
Diversified
Real Asset Fund |
2.5 |
2.4 |
2.4 |
2.4 |
— |
— |
High
Income Fund |
6.8 |
6.7 |
6.0 |
5.2 |
4.8 |
4.3 |
Inflation
Protection Fund |
6.4 |
6.3 |
5.6 |
4.9 |
— |
— |
International
Small Company Fund |
0.8 |
0.8 |
1.0 |
1.2 |
1.5 |
1.6 |
LargeCap
S&P 500 Index Fund |
17.3 |
18.0 |
21.9 |
25.9 |
30.7 |
35.6 |
MidCap
S&P 400 Index Fund |
4.2 |
4.4 |
5.3 |
6.3 |
7.5 |
8.7 |
Origin
Emerging Markets Fund |
0.9 |
0.9 |
1.1 |
1.4 |
1.6 |
1.9 |
Real
Estate Securities Fund |
— |
— |
— |
— |
2.2 |
2.2 |
Short-Term
Income Fund |
17.8 |
17.1 |
13.0 |
8.6 |
— |
— |
SmallCap
S&P 600 Index Fund |
1.3 |
1.4 |
1.7 |
1.9 |
2.4 |
2.7 |
Total |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
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| |
Underlying
Fund |
Principal
LifeTime Hybrid 2040 Fund |
Principal
LifeTime Hybrid 2045 Fund |
Principal
LifeTime Hybrid 2050 Fund |
Principal
LifeTime Hybrid 2055 Fund |
Principal
LifeTime Hybrid 2060 Fund |
Principal
LifeTime Hybrid 2065 Fund |
Principal
LifeTime Hybrid 2070 Fund |
Bond
Market Index Fund |
15.9% |
8.5% |
3.1% |
3.2% |
3.2% |
3.2% |
3.2% |
Diversified
International Fund |
19.7 |
21.7 |
23.3 |
23.2 |
23.3 |
23.3 |
23.2 |
High
Income Fund |
3.1 |
2.2 |
1.1 |
1.1 |
1.1 |
1.1 |
1.1 |
International
Small Company Fund |
2.0 |
2.2 |
2.4 |
2.4 |
2.4 |
2.4 |
2.4 |
LargeCap
S&P 500 Index Fund |
41.7 |
46.1 |
49.5 |
49.5 |
49.4 |
49.4 |
49.0 |
MidCap
S&P 400 Index Fund |
10.1 |
11.2 |
12.0 |
12.0 |
12.0 |
12.0 |
12.1 |
Origin
Emerging Markets Fund |
2.1 |
2.4 |
2.6 |
2.6 |
2.6 |
2.6 |
2.6 |
Real
Estate Securities Fund |
2.2 |
2.2 |
2.2 |
2.2 |
2.2 |
2.2 |
2.3 |
SmallCap
S&P 600 Index Fund |
3.2 |
3.5 |
3.8 |
3.8 |
3.8 |
3.8 |
4.1 |
Total |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
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| |
Underlying
Fund |
SAM
Balanced Portfolio |
SAM
Conservative Balanced Portfolio |
SAM
Conservative Growth Portfolio |
SAM
Flexible Income Portfolio |
SAM
Strategic Growth Portfolio |
Blue
Chip Fund |
9.2% |
6.1% |
12.6% |
2.0% |
14.7% |
Bond
Market Index Fund |
6.7 |
13.2 |
3.1 |
18.6 |
— |
Core
Fixed Income Fund |
14.3 |
24.5 |
6.1 |
29.5 |
— |
Diversified
International Fund |
3.7 |
2.5 |
5.7 |
2.5 |
5.3 |
Diversified
Real Asset Fund |
3.2 |
2.8 |
3.6 |
1.5 |
3.7 |
Equity
Income Fund |
7.0 |
6.1 |
10.4 |
3.1 |
11.8 |
Finisterre
Emerging Markets Total Return Bond Fund |
1.4 |
2.3 |
0.8 |
2.2 |
— |
Global
Real Estate Securities Fund |
— |
— |
— |
0.5 |
— |
Government
& High Quality Bond Fund |
1.4 |
2.4 |
0.6 |
4.3 |
— |
Government
Money Market Fund |
0.7 |
0.6 |
1.0 |
0.7 |
0.6 |
High
Yield Fund |
3.8 |
4.2 |
1.6 |
3.4 |
— |
Inflation
Protection Fund |
1.8 |
3.7 |
0.7 |
5.3 |
— |
International
Equity Index Fund |
0.5 |
0.5 |
1.0 |
— |
1.3 |
International
Small Company Fund |
1.0 |
0.6 |
1.4 |
— |
2.3 |
LargeCap
Growth Fund I |
3.5 |
1.3 |
4.4 |
1.0 |
5.1 |
LargeCap
S&P 500 Index Fund |
2.1 |
1.6 |
2.6 |
1.0 |
3.1 |
LargeCap
Value Fund III |
3.7 |
1.2 |
5.1 |
1.0 |
6.0 |
MidCap
Fund |
1.7 |
1.0 |
2.2 |
— |
1.9 |
Origin
Emerging Markets Fund |
2.2 |
1.3 |
2.9 |
0.5 |
4.0 |
Overseas
Fund |
2.4 |
1.0 |
2.4 |
— |
4.9 |
Principal
Active High Yield ETF |
— |
— |
— |
1.6 |
— |
Principal
Capital Appreciation Fund |
9.3 |
5.9 |
12.3 |
4.1 |
14.8 |
Principal
U.S. Mega-Cap ETF |
10.6 |
7.1 |
12.0 |
5.9 |
13.6 |
Principal
U.S. Small-Cap ETF |
1.9 |
1.5 |
2.5 |
— |
2.6 |
Real
Estate Securities Fund |
0.9 |
0.7 |
1.4 |
0.5 |
0.5 |
Short-Term
Income Fund |
2.0 |
2.7 |
— |
3.7 |
— |
Small-MidCap
Dividend Income Fund |
2.0 |
1.2 |
2.3 |
3.0 |
3.8 |
Spectrum
Preferred and Capital Securities Income Fund |
3.0 |
4.0 |
1.3 |
4.1 |
— |
Total |
100.0% |
100.0% |
100.0% |
100.0% |
100.0% |
A
fund of funds indirectly bears its pro-rata share of the expenses of the
underlying funds in which it invests, as well as directly incurring expenses.
Therefore, investment in a fund of funds is more costly than investing directly
in shares of the underlying funds. Generally, if an underlying fund offers
multiple classes of shares for investment by funds of funds, the Funds will
purchase shares of the class with the lowest expense ratio (expressed as a
percent of average net assets on an annualized basis) at the time of
purchase.
If
you are considering investing in a Principal LifeTime Fund or Principal LifeTime
Hybrid Fund, you should take into account your estimated retirement date and
risk tolerance. In general, each Principal LifeTime Fund or Principal LifeTime
Hybrid Fund is managed with the assumption that the investor will invest in a
Principal LifeTime Fund or Principal LifeTime Hybrid Fund whose stated date is
closest to the date the shareholder retires. Choosing a fund targeting an
earlier date represents a more conservative choice; choosing a fund with a later
date represents a more aggressive choice. It is important to note that the
retirement year of the fund you select should not necessarily represent the
specific year you intend to start drawing retirement assets. It should be a
guide only. Generally, the potential for higher returns over time is accompanied
by the higher risk of a decline in the value of your principal. Investors should
realize that the Principal LifeTime Funds or Principal LifeTime Hybrid Funds are
not a complete solution to their retirement needs. Investors must weigh many
factors when considering when to retire, what their retirement needs will be,
and what sources of income they may have.
There
are five Strategic Asset Management (“SAM”) Portfolios: Flexible Income,
Conservative Balanced, Balanced, Conservative Growth, and Strategic Growth. The
SAM Portfolios offer long-term investors different asset allocation strategies
having different levels of potential investment risk and reward. The SAM
Portfolios share the same risks but often with different levels of exposure. In
general, relative to the other Portfolios:
• the
Balanced Portfolio should offer investors the potential for a medium level of
income and a medium level of capital growth, while exposing them to a medium
level of principal risk,
• the
Conservative Balanced Portfolio should offer investors the potential for a
medium-to-high level of income and a medium-to-low level of capital growth,
while exposing them to a medium-to-low level of principal risk,
• the
Conservative Growth Portfolio should offer investors the potential for a
low-to-medium level of income and a medium-to-high level of capital growth,
while exposing them to a medium-to-high level of principal risk,
• the
Flexible Income Portfolio should offer investors the potential for a high level
of income and a low level of capital growth, while exposing them to a low level
of principal risk, and
• the
Strategic Growth Portfolio should offer investors the potential for a high level
of capital growth, and a corresponding level of principal risk.
Funds
of funds can be subject to payment-in-kind liquidity risk: if an underlying fund
pays a redemption request by the fund wholly or partly by a distribution-in-kind
of portfolio securities rather than in cash, the fund may hold such portfolio
securities until those managing the investments of the fund determine that it is
appropriate to dispose of them.
Management
of funds of funds entails potential conflicts of interest: a fund of fund may
invest in affiliated underlying funds, and those who manage the fund’s
investments and their affiliates may earn different fees from different
underlying funds and may have an incentive to allocate more fund of fund assets
to underlying funds from which they receive higher fees.
Geographic
Concentration (Municipal Obligations)
Greater
risks may arise from the geographic concentration (a particular state, such as
California, Illinois, or New York, or a particular country or region) of
investments, as well as the current and past financial condition of municipal
issuers in the case of a municipal fund. In addition to factors affecting the
state or regional economy, certain constitutional amendments, legislative
measures, executive orders, administrative regulations, court decisions, and
voter initiatives could result in adverse consequences affecting municipal
obligations. See the SAI for a more detailed description of these
risks.
Hedging
Hedging
is a strategy that can be used to attempt to mitigate or protect against
potential losses due to changing interest rates, securities prices, asset
values, currency exchange rates, and other market conditions. The success of a
fund’s hedging strategy will be subject to the ability of those managing the
fund’s investments to correctly assess the degree of correlation between the
performance of the instruments used in the hedging strategy and the performance
of the investments in the portfolio being hedged. Since the characteristics of
many securities change as markets change or time passes, the success of a fund’s
hedging strategy will also be subject to the ability of those managing the
fund’s investments to continually recalculate, readjust, and execute hedges in
an efficient and timely manner. For a variety of reasons, those managing the
fund’s investments may not seek to establish a perfect correlation between such
hedging instruments and the portfolio holdings being hedged. Such imperfect
correlation may prevent a fund from achieving the intended hedge or expose a
fund to risk of loss. In addition, it is not possible to hedge fully or
perfectly against any risk, and hedging entails its own costs.
High
Portfolio Turnover
“Portfolio
turnover” is the term used in the industry for measuring the amount of trading
that occurs in a fund’s portfolio during the year. For example, a 100% turnover
rate means that, on average, every security in the portfolio has been replaced
once during the year. Funds with high turnover rates (more than 100%) often have
higher transaction costs (which are paid by the fund), may result in higher
taxes when fund shares are held in a taxable account, and may lower the fund’s
performance. High portfolio turnover can result in a lower capital gain
distribution due to higher transaction costs added to the basis of the assets or
can result in lower ordinary income distributions to shareholders when the
transaction costs cannot be added to the basis of assets. Both events reduce
fund performance.
Please
consider all the factors when you compare the turnover rates of different funds.
You should also be aware that the “total return” line in the Financial
Highlights section reflects portfolio turnover costs.
No
turnover rate can be calculated for the Government Money Market or Money Market
Funds because of the short maturities of the securities in which they
invest.
High
Yield Securities
Below-investment-grade
securities are fixed-income securities that are rated at the time of purchase
Ba1 or lower by Moody’s Investors Service, Inc. (“Moody’s”) and BB+ or lower by
S&P Global Ratings (“S&P Global”). If the security has been rated by
only one of the rating agencies, that rating will determine the security's
rating; if the security is rated differently by the rating agencies, the highest
rating will be used; and if the security has not been rated by either of the
rating agencies, those selecting such investments will determine the security's
quality.
Below-investment-grade
securities are sometimes referred to as high yield or “junk bonds” and are
considered speculative, particularly with respect to the issuer’s continuing
ability to meet principal and interest payments. Such securities could be in
default at time of purchase.
Investing
in high yield securities involves special risks in addition to those associated
with investing in investment-grade securities:
•High
yield securities may be less liquid than investment-grade
securities.
•The
secondary market on which high yield securities are traded may be less liquid,
which may reduce the price of the security and adversely affect, and cause large
fluctuations in, the daily price of the Fund's shares.
•Analysis
of the creditworthiness of issuers of high yield securities is more complex. To
the extent a Fund invests in high yield securities, its ability to meet its
objective may be more dependent on such credit analyses.
•High
yield securities may be more susceptible to real or perceived adverse economic
and competitive industry conditions. Although high yield securities prices tend
to be less sensitive to interest rate changes than those of investment-grade
securities, they tend to be more sensitive to adverse economic downturns or
individual corporate developments. Adverse publicity and investor perceptions,
whether or not based on fundamental analysis, may decrease the value and
liquidity of high yield securities, especially in a thinly traded
market.
•If
the issuer of high yield securities defaults, a Fund may incur additional
expenses to seek recovery.
•If
an issuer of high yield securities undergoes a corporate restructuring, such
high yield securities may become exchanged for or converted into reorganized
equity of the underlying issuer. Moreover, to the extent that a bond indenture
or loan agreement does not contain sufficiently protective covenants or
otherwise permits the issuer to take certain actions to the Fund's detriment
(such as distributing cash to equity holders, incurring additional indebtedness,
and disposing of assets), the underlying value of the high yield security may
decline.
The
use of credit ratings for evaluating high yield securities also involves certain
risks. For example, credit ratings reflect the safety of principal and interest
payments, not the market value risk of high yield securities. Also, credit
rating agencies may fail to change credit ratings in a timely manner to reflect
subsequent events. If a credit rating agency changes the rating of a portfolio
security held by a Fund, the Fund may retain the security.
Industrial
Revenue Bond
A
fund will be sensitive to, and its performance will depend to a greater extent
on, the overall condition and performance of industrial revenue bonds. These
revenue bonds are issued by or on behalf of public authorities to obtain funds
to finance various public and/or privately operated facilities, including those
for business and manufacturing, housing, sports, pollution control, airport,
mass transit, port, and parking facilities. These bonds are normally secured
only by the revenues from the project and not by state or local government tax
payments. Consequently, the credit quality of these bonds is dependent upon the
ability of the user of the facilities financed by the bonds and any guarantor to
meet its financial obligations. Payment of interest on and repayment of
principal on such bonds are the responsibility of the user and/or any guarantor.
These bonds are subject to a wide variety of risks, many of which relate to the
nature of the specific project. Generally, the value and credit quality of these
bonds are sensitive to the risks related to an economic slowdown.
Industry
Concentration
A
fund that concentrates its investments (invests more than 25% of its net assets)
in a particular industry (or group of industries) is more exposed to the overall
condition of the particular industry than a fund that invests in a wider variety
of industries. A particular industry could be affected by economic, business,
supply-and-demand, political, or regulatory factors. Companies within the same
industry could react similarly to such factors. As a result, a fund’s
concentration in a particular industry would increase the possibility that the
fund’s performance will be affected by such factors.
Inverse
Floating Rate Investments
Inverse
floating rate investments are variable rate debt instruments that pay interest
at rates that move in the opposite direction of prevailing interest rates.
Inverse floating rate investments tend to underperform the market for fixed-rate
bonds in a rising interest rate environment. Inverse floating rate investments
have varying degrees of liquidity. Inverse floating rate investments in which
the funds may invest may include derivative instruments, such as residual
interest bonds or tender option bonds. Such instruments are typically created by
a special purpose trust that holds long-term fixed-rate bonds and sells two
classes of beneficial interests: short-term floating rate interests, which are
sold to third-party investors, and the inverse floating residual interests,
which are purchased by the funds. The funds generally invest in inverse floating
rate investments that include embedded leverage, thus exposing the funds to
greater risks and increased costs. The market value of a “leveraged” inverse
floating rate investment generally will fluctuate in response to changes in
market rates of interest to a greater extent than the value of an unleveraged
investment.
Investment
Company Securities
Securities
of other investment companies, including shares of closed-end investment
companies, unit investment trusts, various ETFs, and other open-end investment
companies, represent interests in professionally managed portfolios that may
invest in a variety of instruments. Certain types of investment companies, such
as closed-end investment companies, issue a fixed number of shares that trade on
a stock exchange or over-the-counter at a premium or a discount to their net
asset value. Others are continuously offered at net asset value but may also be
traded in the secondary market. ETFs are often structured to perform in a
similar fashion to a broad-based securities index. Investing in ETFs involves
generally the same risks as investing directly in the underlying instruments.
Investing in ETFs involves the risk that they will not perform in exactly the
same fashion, or in response to the same factors, as the index or underlying
instruments. Shares of ETFs may trade at prices other than net asset
value.
A
fund that invests in another investment company is subject to the risks
associated with direct ownership of the securities in which such investment
company invests. Fund shareholders indirectly bear their proportionate share of
the expenses of each such investment company, including its advisory and
administrative fees. The Fund would also continue to pay its own advisory fees
and other expenses. Consequently, the Fund and its shareholders would, in
effect, absorb two levels of fees with respect to investments in other
investment companies.
A
fund may invest in affiliated underlying funds, and those who manage such fund’s
investments and their affiliates may earn different fees from different
underlying funds and may have an incentive to allocate more fund assets to
underlying funds from which they receive higher fees.
Leverage
If
a fund makes investments in futures contracts, forward contracts, swaps, and
other derivative instruments, these instruments provide the economic effect of
financial leverage by creating additional investment exposure, as well as the
potential for greater loss. If a fund uses leverage through activities such as
borrowing, entering into short sales, purchasing securities on margin or on a
“when-issued” basis, or purchasing derivative instruments in an effort to
increase its returns, the fund has the risk of magnified capital losses that
occur when losses affect an asset base, enlarged by borrowings or the creation
of liabilities, that exceeds the net assets of the fund. The net asset value of
a fund employing leverage will be more volatile and sensitive to market
movements. Leverage may involve the creation of a liability that requires the
fund to pay interest. Leveraging may cause a fund to liquidate portfolio
positions to satisfy its obligations when it may not be advantageous to do so.
To the extent that a fund is not able to close out a leveraged position because
of market illiquidity, a fund’s liquidity may be impaired.
Municipal
Obligations and AMT-Subject Bonds
Municipal
obligations are subject to the risk that litigation, legislation, or other
political events, local business or economic conditions, credit rating
downgrades, or the bankruptcy of the issuer could have a significant effect on
an issuer’s ability to make payments of principal and/or interest or otherwise
affect the value of such obligations. Certain municipalities may have difficulty
meeting their obligations due to, among other reasons, changes in underlying
demographics. Municipal obligations can be significantly affected by political
changes as well as uncertainties in the municipal market related to government
regulation, taxation, legislative changes, or the rights of municipal security
holders. Because many municipal obligations are issued to finance similar
projects, especially those relating to education, health care, transportation,
utilities, and water and sewer, conditions in those sectors can affect the
overall municipal market. Municipal obligations include general obligation
bonds, which are backed by the “full faith and credit” of the issuer, which has
the power to tax residents to pay bondholders. Timely payments depend on the
issuer’s credit quality, ability to raise tax revenues, and ability to maintain
an adequate tax base. General obligation bonds generally are not backed by
revenues from a specific project or source. Municipal obligations also include
revenue bonds, which are generally backed by revenue from a specific project or
tax. The issuer of a revenue bond makes interest and principal payments from
revenues generated from a particular source or facility, such as a tax on
particular property or revenues generated from a municipal water or sewer
utility or an airport. Revenue bonds generally are not backed by the full faith
and credit and general taxing power of the issuer. The market for municipal
obligations/bonds may be less liquid than for taxable bonds. There may be less
information available on the financial condition of issuers of municipal
obligations than for public corporations. Municipal obligations may be
susceptible to periods of economic stress, which could affect the market values
and marketability of many or all municipal obligations of issuers in a state,
U.S. territory, or possession.
AMT-subject
bonds are municipal obligations issued to finance certain “private activities,”
such as bonds used to finance airports, housing projects, student loan programs,
and water and sewer projects. Interest on AMT-subject bonds is an item of tax
preference for purposes of the federal individual alternative minimum tax
(“AMT”). See “Tax Considerations” for a discussion of the tax consequences of
investing in the Fund.
Current
federal income tax laws limit the types and volume of bonds qualifying for the
federal income tax exemption of interest, which may affect the ability of the
Fund to purchase sufficient amounts of tax-exempt bonds.
Portfolio
Duration
Average
duration is a mathematical calculation of the average life of a bond (or for a
bond fund, the average life of the fund’s underlying bonds, weighted by the
percentage of the fund’s assets that each represents) that serves as a useful
measure of its price risk. Duration is an estimate of how much the value of the
bonds held by a fund will fluctuate in response to a change in interest rates.
For example, if a fund has an average duration of 4 years and interest rates
rise by 1%, the value of the bonds held by the fund will decline by
approximately 4%, and if the interest rates decline by 1%, the value of the
bonds held by the fund will increase by approximately 4%. Longer term bonds and
zero coupon bonds are generally more sensitive to interest rate changes.
Duration, which measures price sensitivity to interest rate changes, is not
necessarily equal to average maturity.
Preferred
Securities
Preferred
securities include preferred stock and various types of junior subordinated debt
and trust preferred securities. Preferred securities may pay fixed rate or
adjustable-rate distributions and generally have a payment “preference” over
common stock, but are junior to the issuer’s senior debt in a liquidation of the
issuer’s assets. Preference would mean that a company must pay on its preferred
securities before paying on its common stock, and that any claims of the
preferred security holder would typically be ahead of common stockholders’
claims on assets in a corporate liquidation.
Holders
of preferred securities usually have no right to vote for corporate directors or
on other matters. The market value of preferred securities is sensitive to
changes in interest rates as they are typically fixed-income securities; the
fixed-income payments are expected to be the primary source of long-term
investment return. While some preferred securities are issued with a final
maturity date, others are perpetual in nature. In certain instances, a final
maturity date may be extended and/or the final payment of principal may be
deferred at the issuer’s option for a specified time without triggering an event
of default for the issuer. In addition, an issuer of preferred securities may
have the right to redeem the securities before their stated maturity date. For
instance, for certain types of preferred securities, a redemption may be
triggered by a change in federal income tax or securities laws. As with call
provisions, a redemption by the issuer may reduce the return of the security
held by the fund. Preferred securities may be subject to provisions that allow
an issuer, under certain circumstances to skip (indefinitely) or defer (possibly
up to 10 years) distributions. If a fund owns a preferred security that is
deferring its distribution, the fund may be required to report income for tax
purposes while it is not receiving any income.
Preferred
securities are typically issued by corporations, generally in the form of
interest or dividend bearing instruments, or by an affiliated business trust of
a corporation, generally in the form of beneficial interests in subordinated
debentures or similarly structured securities. The preferred securities market
is generally divided into the $25 par “retail” and the $1,000 par
“institutional” segments. The $25 par segment includes securities that are
listed on the New York Stock Exchange (“NYSE”) (exchange traded), which trade
and are quoted with accrued dividend or interest income, and which are often
callable at par value five years after their original issuance date. The
institutional segment includes $1,000 par value securities that are not
exchange-listed (over the counter), which trade and are quoted on a “clean”
price, i.e., without accrued dividend or interest income, and which often have a
minimum of 10 years of call protection from the date of their original issuance.
Preferred securities can also be issued by real estate investment trusts and
involve risks similar to those associated with investing in real estate
investment trust companies.
Real
Estate Investment Trusts ("REITs")
REITs
involve certain unique risks in addition to the risks associated with investing
in the real estate industry in general (such as possible declines in the value
of real estate, lack of availability of mortgage funds, or extended vacancies of
property). REITs are characterized as: equity REITs, which primarily own
property and generate revenue from rental income; mortgage REITs, which invest
in real estate mortgages; and hybrid REITs, which combine the characteristics of
both equity and mortgage REITs. Equity REITs may be affected by changes in the
value of the underlying property owned by the REITs, while mortgage REITs may be
affected by the quality of any credit extended. REITs are dependent upon
management skills, are not diversified, and are subject to heavy cash flow
dependency, risks of default by borrowers, and self-liquidation. A fund that
invests in a REIT is subject to the REIT’s expenses, including management fees,
and will remain subject to the fund’s advisory fees with respect to the assets
so invested. REITs are also subject to the possibilities of failing to qualify
for the special tax treatment accorded REITs under the Internal Revenue Code and
failing to maintain their exemptions from registration under the 1940
Act.
Regular
REIT dividends received by a Fund from a REIT will not qualify for the corporate
dividends-received deduction and generally will not constitute qualified
dividend income for U.S. income tax purposes. Any distribution of income
attributable to regular REIT dividends from a Fund’s investment in a REIT will
not qualify for the deduction that would be available to a non-corporate
shareholder were the shareholder to own such REIT directly.
Investment
in REITs also involves risks similar to those associated with investing in small
market capitalization companies. REITs may have limited financial resources, may
trade less frequently and in a limited volume, and may be subject to more abrupt
or erratic price movements than larger company securities.
Real
Estate Securities
Investing
in securities of companies in the real estate industry subjects a fund to the
special risks associated with the real estate market and the real estate
industry in general. Generally, companies in the real estate industry are
considered to be those that have principal activity involving the development,
ownership, construction, management, or sale of real estate; have significant
real estate holdings, such as hospitality companies, healthcare facilities,
supermarkets, mining, lumber, and/or paper companies; and/or provide products or
services related to the real estate industry, such as financial institutions
that make and/or service mortgage loans and manufacturers or distributors of
building supplies. Securities of companies in the real estate industry are
sensitive to factors such as loss to casualty or condemnation, changes in real
estate values, property taxes, interest rates, cash flow of underlying real
estate assets, occupancy rates, government regulations affecting zoning, land
use and rents, and the management skill and creditworthiness of the issuer.
Companies in the real estate industry may also be subject to liabilities under
environmental and hazardous waste laws.
Redemption
and Large Transaction Risk
Ownership
of a fund’s shares may be concentrated in one or a few large investors (such as
funds of funds, institutional investors, and asset allocation programs) that may
redeem or purchase shares in large quantities. These transactions may cause a
fund to sell securities to meet redemptions or to invest additional cash at
times it would not otherwise do so, which may result in increased transaction
costs, increased expenses, changes to expense ratios, and adverse effects to
fund performance. Such transactions may also accelerate the realization of
taxable income if sales of portfolio securities result in gains. Moreover,
reallocations by large shareholders among share classes of a fund may result in
changes to the expense ratios of affected classes, which may increase the
expenses paid by shareholders of the class that experienced the
redemption.
As
an example, as of October 31, 2023, series of the Registrant, Principal Variable
Contracts, Funds, Inc. (“PVC”), and Principal Exchange-Traded Funds owned the
following percentages, in the aggregate, of the outstanding shares of the
underlying funds listed below. PGI is the advisor to the PFI and PVC funds of
funds and is committed to minimizing the potential impact of redemption and
large transaction risk on underlying funds to the extent consistent with
pursuing the investment objectives of the funds of funds that it manages.
However, PGI and its affiliates may face conflicts of interest in fulfilling
responsibilities to all such funds.
|
|
|
|
| |
Fund |
Total
Percentage of Outstanding Shares Owned |
Core
Fixed Income |
69.07% |
Diversified
International |
77.70% |
Equity
Income |
30.51% |
Finisterre
Emerging Markets Total Return Bond |
40.32% |
Global
Real Estate Securities |
0.63% |
Government
& High Quality Bond |
33.80% |
Government
Money Market |
90.62% |
High
Income |
31.18% |
High
Yield |
16.32% |
Inflation
Protection |
43.94% |
LargeCap
Growth I |
19.68% |
LargeCap
S&P 500 Index |
52.23% |
LargeCap
Value III |
74.03% |
MidCap
|
2.62% |
MidCap
Growth III |
59.63% |
MidCap
S&P 400 Index |
48.30% |
MidCap
Value I |
28.21% |
Overseas
|
71.56% |
Principal
Capital Appreciation |
37.34% |
Real
Estate Securities |
10.30% |
Short-Term
Income |
36.26% |
SmallCap
Growth I |
13.47% |
SmallCap
S&P 600 Index |
35.06% |
SmallCap
Value II |
25.94% |
Repurchase
Agreements
Repurchase
agreements typically involve the purchase of debt securities from a financial
institution such as a bank, savings and loan association, or broker-dealer. A
repurchase agreement provides that the fund sells back to the seller and that
the seller repurchases the underlying securities at a specified price on a
specific date. Repurchase agreements may be viewed as loans by the fund
collateralized by the underlying securities. This arrangement results in a fixed
rate of return that is not subject to market fluctuation while the fund holds
the security. In the event of a default or bankruptcy by a selling financial
institution, the affected fund bears a risk of loss, including incurring costs
and delays. Repurchase agreements may involve more risk than investments in U.S.
government securities. To minimize such risks, the fund enters into repurchase
agreements only with parties those managing the investments of the fund deem
creditworthy (those that are large, well-capitalized and well-established
financial institutions). In addition, the value of the securities
collateralizing the repurchase agreement is, and during the entire term of the
repurchase agreement remains, at least equal to the acquisition price the Fund
pays to the seller of the securities.
Securitized
Products
Securitized
products are fixed-income instruments that represent interests in underlying
pools of collateral or assets. The value of the securitized product is derived
from the performance, value, and cash flows of the underlying
asset(s).
A
fund’s investments in securitized products are subject to risks similar to
traditional fixed-income securities, such as credit, interest rate, liquidity,
prepayment, extension, and default risk, as well as additional risks associated
with the nature of the assets and the servicing of those assets. Prepayment risk
may make it difficult to calculate the average life of a fund’s investment in
securitized products. Securitized products are generally issued as pass-through
certificates, which represent the right to receive principal and interest
payments collected on the underlying pool of assets, which are passed through to
the security holder. Therefore, repayment depends on the cash flows generated by
the underlying pool of assets. The securities may be rated as investment grade
or below investment grade.
The
specific securitized products that are principal strategies of each Fund are
listed in its Fund Summary.
•Mortgage-backed
securities (“MBS”) represent an interest in a pool of underlying mortgage loans
secured by real property. MBS are sensitive to changes in interest rates but may
respond to these changes differently from other fixed-income securities due to
the possibility of prepayment of the underlying mortgage loans. If interest
rates fall and the underlying loans are prepaid faster than expected, the fund
may have to reinvest the prepaid principal in lower yielding securities, thus
reducing the fund’s income. Conversely, rising interest rates tend to discourage
refinancings and the underlying loans may be prepaid more slowly than expected,
reducing a fund’s potential to reinvest the principal in higher yielding
securities and extending the duration of the underlying loans. In addition, when
market conditions result in an increase in default rates on the underlying loans
and the foreclosure values of the underlying real estate is less than the
outstanding amount due on the underlying loan, collection of the full amount of
accrued interest and principal on these investments may be doubtful. The risk of
such defaults is generally higher in the case of underlying mortgage pools that
include sub-prime mortgages (mortgages granted to borrowers whose credit
histories would not support conventional mortgages).
•Commercial
mortgage-backed securities (“CMBS”) represent an interest in a pool of
underlying commercial mortgage loans secured by real property such as retail,
office, hotel, multi-family, and industrial properties. CMBS are issued in
several classes with different levels of yield and credit protection, and the
CMBS class in which a fund invests influences the interest rate, credit, and
prepayment risks. Many of the loans related to CMBS do not allow voluntary
prepayment, which can help mitigate or eliminate prepayment risk.
•Asset-backed
securities (“ABS”) are backed by non-mortgage assets such as company
receivables, company loans, truck and auto loans, student loans, leases, and
credit card receivables. ABS entail credit risk. They also may present a risk
that, in the event of default, the liquidation value of the underlying assets
may be inadequate to pay any unpaid interest or principal.
U.S.
Government and U.S. Government-Sponsored Securities
U.S.
government securities, such as Treasury bills, notes, and bonds and
mortgage-backed securities guaranteed by the Government National Mortgage
Association (Ginnie Mae), are supported by the full faith and credit of the
United States; others are supported by the right of the issuer to borrow from
the U.S. Treasury; others are supported by the discretionary authority of the
U.S. government to purchase the agency’s obligations; and still others are
supported only by the credit of the issuing agency, instrumentality, or
enterprise.
Although
U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage
Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie
Mae) may be chartered or sponsored by Congress, they are not funded by
Congressional appropriations, and their securities are not issued by the U.S.
Treasury nor supported by the full faith and credit of the U.S.
government.
There
is no assurance that the U.S. government would provide financial support to its
agencies and instrumentalities if not required to do so. In addition, certain
governmental entities have been subject to regulatory scrutiny regarding their
accounting policies and practices and other concerns that may result in
legislation, changes in regulatory oversight, and/or other consequences that
could adversely affect the credit quality, availability, or investment character
of securities issued by these entities. The value and liquidity of U.S.
government securities may be affected adversely by changes in the ratings of
those securities.
Volatility
Mitigation
Volatility
mitigation strategies may increase fund transaction costs, which could increase
losses or reduce gains. These strategies may not protect the fund from market
declines and may reduce the fund’s participation in market gains.
PORTFOLIO
HOLDINGS INFORMATION
A
description of the Registrant’s policies and procedures with respect to
disclosure of the Funds' portfolio securities is available in the Funds'
SAI.
MANAGEMENT
OF THE FUNDS
The
Manager and Advisor
Principal
Global Investors, LLC (“PGI”), an indirect subsidiary of Principal Financial
Group, Inc. (“Principal®”),
serves as the manager and advisor for the Funds. Through the Management
Agreement with the Registrant, PGI provides investment advisory services and
certain corporate administrative services for the Funds.
Advisor:
Principal
Global Investors, LLC (doing
business as Principal Asset ManagementSM),
711 High Street, Des Moines, IA 50392, is part of a diversified global asset
management organization that utilizes specialized investment teams and
affiliates to provide institutional investors and individuals with diverse
investment capabilities, including fixed income, equities, real estate,
currency, asset allocation, and stable value. In addition to its asset
management offices in the U.S., PGI has asset management offices of affiliate
advisors located in Europe, Asia, Latin America, and Australia. PGI has been a
registered investment advisor since 1998.
Funds: In
fulfilling its investment advisory responsibilities, PGI provides day-to-day
discretionary investment services (directly making decisions to purchase or sell
securities) for all or a portion of the following Funds:
|
| |
•
California Municipal |
•
Core Fixed Income |
•
Core Plus Bond |
•
Diversified Income (services provided by Principal Asset Allocation; and,
for emerging market debt, services provided by Principal Finisterre, an
investment team within PGI) |
•
Diversified International |
•
Equity Income (services provided by Principal Edge, an investment team
within PGI) |
•
Finisterre Emerging Markets Total Return Bond (services provided by
Principal Finisterre, an investment team within PGI) |
•
Global Emerging Markets |
•
Government & High Quality Bond |
•
Government Money Market |
•
High Income (services provided by Principal Asset
Allocation) |
•
High Yield |
•
LargeCap Growth I (services provided by Principal Asset
Allocation) |
•
LargeCap S&P 500 Index |
•
LargeCap Value III (services provided by Principal Asset
Allocation) |
•
MidCap (services provided by Principal Aligned, an investment team within
PGI) |
•
MidCap Growth (services provided by Principal Dynamic Growth, an
investment team within PGI) |
•
MidCap Growth III (services provided by Principal Asset
Allocation) |
•
MidCap S&P 400 Index |
•
MidCap Value I (services provided by Principal Asset
Allocation) |
•
Money Market |
•
Overseas (services provided by Principal Asset
Allocation) |
•
Principal Capital Appreciation (services provided by Principal Edge, an
investment team within PGI) |
•
Principal LifeTime Funds (services provided by Principal Asset
Allocation) |
•
Principal LifeTime Hybrid Funds (services provided by
Principal
Asset
Allocation) |
•
SAM (Strategic Asset Management) Portfolios (services provided by
Principal Asset Allocation) |
•
Short-Term Income |
•
SmallCap |
•
SmallCap Growth I (services provided by Principal Asset
Allocation) |
•
SmallCap S&P 600 Index |
•
SmallCap Value II (services provided by Principal Asset
Allocation) |
•
Tax-Exempt Bond |
Several
of the Funds have multiple sub-advisors. A team within Principal
Asset
Allocation, an investment team within PGI and whose members are identified in
each Fund Summary and listed below, determines the portion of those Funds’
assets that PGI and each sub-advisor will manage and may reallocate Fund assets
among PGI and the sub-advisors from time-to-time. This team agrees on allocation
decisions and shares authority and responsibility for day-to-day portfolio
management, with no limitation on the authority of one portfolio manager in
relation to another.
The
decision to reallocate Fund assets between PGI acting in a discretionary
advisory capacity and the sub-advisors may be based on a variety of factors,
including, but not limited to: the investment capacity of PGI and each
sub-advisor, portfolio diversification, volume of net cash flows, fund
liquidity, investment performance, investment strategies, changes in PGI or each
sub-advisor’s firm or investment professionals, or changes in the number of
sub-advisors. Ordinarily, reallocations of Fund assets among sub-advisors occur
as a sub-advisor liquidates assets in the normal course of portfolio management
or with net new cash flows; however, at times, existing Fund assets may be
reallocated among PGI and/or the sub-advisors.
The
Fund Summaries identified the portfolio managers and the Funds they manage.
Additional information about the portfolio managers follows. With respect to the
biographies of PGI portfolio managers, references to Principal®
encompass various entities and groups within the Principal organization, such as
its majority- and wholly-owned subsidiaries, as well as investment teams within
PGI.
As
reflected in the Fund Summaries, the day-to-day portfolio management, for some
Funds, is shared by multiple portfolio managers. In each such case, the
portfolio managers operate as a team, sharing authority and responsibility for
research and the day-to-day management of the portfolio. However, for the MidCap
Fund, Mr. Nolin has ultimate decision making authority. Mr. Rozycki may make
investment decisions in Mr. Nolin’s absence.
William
C. Armstrong has
been with Principal®
since 1992. He earned a bachelor’s degree from Kearney State College and an
M.B.A. from the University of Iowa. Mr. Armstrong has earned the right to use
the Chartered Financial Analyst designation.
Paul
H. Blankenhagen has
been with Principal®
since 1992. He earned a bachelor’s degree in Finance from Iowa State University
and a master’s degree from Drake University. Mr. Blankenhagen has earned the
right to use the Chartered Financial Analyst designation.
Damien
Buchet has
been with Principal®
since
2015. He earned his degree from the EDHEC School of Business Administration. Mr.
Buchet has earned the right to use the Chartered Financial Analyst
designation.
Jessica
S. Bush has
been with Principal®
since 2006. She earned a bachelor’s degree in Business Administration from the
University of Michigan. Ms. Bush has earned the right to use the Chartered
Financial Analyst designation.
Juliet
Cohn has
been with Principal®
since 2003. She earned a bachelor’s degree in Mathematics from Trinity College,
Cambridge, England.
Daniel
R. Coleman has
been with Principal®
since 2001. He earned a bachelor’s degree in Finance from the University of
Washington and an M.B.A. from New York University.
Christopher
T. Corbett has
been with Principal®
since 2006. He earned a B.B.A. in Accounting and an M.B.A. in Finance from the
University of Notre Dame. Mr. Corbett has earned the right to use the Chartered
Financial Analyst designation.
Brody
Dass has
been with Principal®
since 2015. He earned a bachelor’s degree from the University of Iowa. Mr. Dass
has earned the right to use the Chartered Financial Analyst
designation.
Bryan
C. Davis has
been with Principal®
since 1993. He earned a bachelor’s degree in Finance from the University of
Iowa. Mr. Davis has earned the right to use the Chartered Financial Analyst
designation.
Mark
P. Denkinger has
been with Principal®
since 1990. He earned a bachelor’s degree in Finance and an M.B.A. with a
Finance emphasis from the University of Iowa. Mr. Denkinger has earned the right
to use the Chartered Financial Analyst designation.
James
W. Fennessey has
been with Principal®
since 2000. Mr. Fennessey earned a bachelor’s degree in Business Administration,
with an emphasis in Finance, and a minor in Economics from Truman State
University. He has earned the right to use the Chartered Financial Analyst
designation.
John
R. Friedl has
been with Principal®
since 1998. He earned a bachelor’s degree in Communications and History from the
University of Washington and a master’s degree in Finance from Seattle
University. Mr. Friedl has earned the right to use the Chartered Financial
Analyst designation.
Zach
Gassmann has
been with Principal®
since 2007. He received a bachelor’s degree in Accounting from Simpson College
and a master’s degree in Financial Management from Drake University. Mr.
Gassmann has earned the right to use the Chartered Financial Analyst
designation.
Michael
Goosay has
been with Principal®
since
2023. Prior to that, Mr. Goosay was the Head of Global Pensions and Multi-Sector
Fixed Income Portfolio Management at Goldman Sachs Asset Management since 2009.
He earned a bachelor’s degree in Finance from Albright College and an M.B.A.
from Rutgers University.
Allison
Hitchings
has been with Principal®
since
2013. She earned a bachelor’s degree in Marketing from Iowa State
University.
Todd
A. Jablonski has
been with Principal®
since 2010. He earned a bachelor’s degree in Economics from the University of
Virginia and an M.B.A. with an emphasis in Quantitative Finance from New York
University’s Stern School of Business. Mr. Jablonski has earned the right to use
the Chartered Financial Analyst designation.
Theodore
Jayne has
been with Principal®
since 2015. He earned a bachelor’s degree in Anthropology from Harvard
University. Mr. Jayne has earned the right to use the Chartered Financial
Analyst designation.
Jeffrey
Kilkenny was
with Principal®
from 1999-2006 and rejoined Principal®
in 2012. He earned a bachelor’s degree in Finance from the University of Iowa.
Mr. Kilkenny has earned the right to use the Chartered Financial Analyst
designation.
George
Maris
has
been with Principal®
since
2023. Prior to that, Mr. Maris was the Head of Equities, Americas region, and
Lead Portfolio Manager of the Global Alpha Equity Team at Janus Henderson
Investors, since 2011. He earned a bachelor’s degree in Economics from
Swarthmore College, a master's of business administration from the University of
Chicago, and a Juris Doctor from the University of Illinois. Mr. Maris has
earned the right to use the Chartered Financial Analyst designation.
James
Noble has
been with Principal®
since 2010. He earned a bachelor’s degree in Finance and an M.B.A. from Hofstra
University. Mr. Noble has earned the right to use the Chartered Financial
Analyst designation.
K.
William Nolin has
been with Principal®
since 1993. He earned a bachelor’s degree in Finance from the University of Iowa
and an M.B.A. from the Yale School of Management. Mr. Nolin has earned the right
to use the Chartered Financial Analyst designation.
Phil
Nordhus has
been with Principal®
since 1990. He earned a bachelor’s degree in Economics from Kansas State
University and an M.B.A. from Drake University. Mr. Nordhus has earned the right
to use the Chartered Financial Analyst designation.
Tyler
O’Donnell has
been with Principal®
since
2015. He earned bachelor’s degrees in Mathematics and Biochemistry from the
University of Iowa and an M.B.A. from Iowa State University. Mr. O’Donnell has
earned the right to use the Chartered Financial Analyst
designation.
Brian
W. Pattinson has
been with Principal®
since 1994. He earned a bachelor’s degree and an M.B.A. in Finance from the
University of Iowa. Mr. Pattinson has earned the right to use the Chartered
Financial Analyst designation.
Scott
J. Peterson has
been with Principal®
since 2002. He earned a bachelor’s degree in Mathematics from Brigham Young
University and an M.B.A. from New York University’s Stern School of Business.
Mr. Peterson has earned the right to use the Chartered Financial Analyst
designation.
Sarah
E. Radecki has
been with Principal®
since 1999. She earned bachelor’s degrees in Political Science and Economics
from Saint Mary’s College of California and a master’s degree in Economics from
the University of California at Santa Barbara. Ms. Radecki has earned the right
to use the Chartered Financial Analyst designation.
Josh
Rank has
been with Principal®
since 2013. He earned a bachelor’s degree in Finance from Iowa State University.
Mr. Rank has earned the right to use the Chartered Financial Analyst
designation.
Tracy
Reeg has
been with Principal®
since 1993. She earned a bachelor’s degree in Finance from the University of
Northern Iowa.
Benjamin
E. Rotenberg has
been with Principal®
since 2014. He earned a bachelor’s degree in International Relations and Russian
from Pomona College. Mr. Rotenberg has earned the right to use the Chartered
Financial Analyst and the Chartered Alternative Investment Analyst
designations.
Tom
Rozycki has
been with Principal®
since 2001. He earned a bachelor’s degree in Finance from Drake University. Mr.
Rozycki has earned the right to use the Chartered Financial Analyst
designation.
Marc
R. Shapiro has
been with Principal®
since 2004. He earned a bachelor’s degree in Finance and Marketing from Emery
University.
Aaron
J. Siebel has
been with Principal®
since 2005. He earned a bachelor’s degree in Finance from the University of
Iowa. Mr. Siebel has earned the right to use the Chartered Financial Analyst
designation.
Darrin
E. Smith has
been with Principal®
since 2007. He earned a bachelor’s degree in Economics from Iowa State
University and an M.B.A. from Drake University. Mr. Smith has earned the right
to use the Chartered Financial Analyst designation.
Scott
Smith has
been with Principal®
since 1999. He earned a bachelor’s degree in Finance from Iowa State
University.
Yesim
Tokat-Acikel has
been with Principal®
since 2023. Prior to that, Ms. Tokat-Acikel was a Managing Director, Head of
Multi-Asset Research, Co-Head of ESG, and Portfolio Manager for PGIM
Quantitative Solutions, a business of Prudential Financial, since 2010. She
earned a bachelor’s degree in Industrial Engineering from Bilkent University, a
master’s degree in Industrial Engineering from the University of Arizona, and a
PhD in Financial Economics from the University of California, Santa
Barbara.
May
Tong has
been with Principal®
since 2021. Prior to that, Ms. Tong was a Senior Vice President, Portfolio
Manager for Franklin Templeton Multi-Asset Solutions since 2018. Prior to that,
Ms. Tong was a Portfolio Manager and Head of Portfolio Implementation and
Management for Voya Investment Management’s Multi-Asset Strategies and Solutions
Team since 2011. She earned a bachelor’s degree in Accounting and Finance from
Boston College and an M.B.A. from Columbia University. Ms. Tong has earned the
right to use the Chartered Financial Analyst designation.
Nedret
Vidinli has
been with Principal®
since 2010. He earned a bachelor’s degree in Business Administration at Drake
University and an M.B.A. at Benedictine University. Mr. Vidinli has earned the
right to use the Chartered Financial Analyst designation.
Christopher
Watson has
been with Principal®
since 2011. He earned a B.A. Hons from McGill University, Montreal and an M.B.A.
from IMD Lausanne. Mr. Watson has earned the right to use the Chartered
Financial Analyst designation.
James
Welch has
been with Principal®
since 2014. He earned a bachelor’s degree in Economics from the Pennsylvania
State University.
Randy
L. Welch has
been with Principal®
since 1989. He earned a bachelor’s degree in Business/Finance from Grand View
College and an M.B.A. from Drake University. Mr. Welch is an affiliate member of
the Chartered Financial Analysts (CFA) Institute.
The
Sub-Advisors
PGI
has signed contracts with various sub-advisors. Under the sub-advisory
agreements, the sub-advisor agrees to assume the obligations of PGI to provide
investment advisory services to the portion of the assets of a specific Fund
allocated to it by PGI. For these services, PGI pays the sub-advisor a
fee.
PGI
or the sub-advisor provides the Board with a recommended investment program. The
program must be consistent with the Fund’s investment objective and policies.
Within the scope of the approved investment program, the sub-advisor advises the
Fund on its investment policy and determines which securities are bought or
sold, and in what amounts.
The
Fund Summaries identified the sub-advisors, portfolio managers, and the Funds
they manage. Additional information follows.
|
|
|
|
| |
Sub-Advisor: |
AllianceBernstein
L.P. (“AllianceBernstein”),
501 Commerce Street, Nashville, TN 37203, was founded in 1971 as an
independent investment advisor registered with the SEC. |
| |
Fund(s): |
a
portion of SmallCap Growth I |
|
|
|
|
| |
Sub-Advisor: |
Barrow,
Hanley, Mewhinney & Strauss, LLC (doing
business as Barrow Hanley Global Investors) (“Barrow
Hanley”),
2200 Ross Avenue, 31st Floor, Dallas, Texas 75201, is an investment
advisory firm that was founded in 1979. |
| |
Fund(s): |
a
portion of LargeCap Value III and a portion of
Overseas |
|
|
|
|
| |
Sub-Advisor: |
BlackRock
Financial Management, Inc. (“BlackRock”),
50 Hudson Yards, New York, NY 10001, is a registered investment advisor
organized in 1994. BlackRock and its affiliates manage investment company
and other portfolio assets. |
|
Sub-Sub-Advisor:
BlackRock
International Limited (“BIL”),
Exchange Place One, 1 Semple Street, Edinburgh EH3 8BL, Scotland, is a
registered investment advisor that was founded in 1995. |
Fund(s): |
Inflation
Protection and a portion of Diversified Income (global investment grade
credit sleeve) |
|
BlackRock
and BIL, with PGI’s consent, have entered into a sub-sub-advisory
agreement for the Inflation Protection Fund and a portion of the
Diversified Income Fund. Under the agreement, BIL has agreed to carry out
certain investment advisory obligations of BlackRock to manage the
Inflation Protection Fund’s assets and a portion of the Diversified Income
Fund’s assets. BlackRock will allocate to BIL a portion of the Inflation
Protection Fund assets and a portion of the Diversified Income Fund assets
it manages. |
| |
Chris
Allen has
been with BIL since 2009. He earned an M.A. degree in Mathematics from
Oxford University. Mr. Allen has earned the right to use the Chartered
Financial Analyst designation. |
| |
David
Rogal has
been with BlackRock since 2009. He earned a B.A. degree in Economics and
Biology from Cornell University in 2006. |
| |
Harrison
Segall has
been with BlackRock since 2008. He earned a B.S. degree in Commerce, with
a concentration in Finance, from the University of
Virginia. |
|
|
|
|
| |
Sub-Advisor: |
Brown
Advisory, LLC (“Brown”),
901 South Bond Street, Suite 400, Baltimore, Maryland 21231, is a
registered investment advisor that works with institutions, corporations,
nonprofits, families, and individuals. |
| |
Fund(s): |
a
portion of LargeCap Growth I and a portion of SmallCap Growth
I |
|
|
|
|
| |
Sub-Advisor: |
Causeway
Capital Management LLC (“Causeway”),
11111 Santa Monica Boulevard, 15th Floor, Los Angeles, CA 90025, is a
registered investment advisor founded in 2001. |
| |
Fund(s): |
a
portion of Overseas |
|
|
|
|
| |
Sub-Advisor: |
Eagle
Asset Management, Inc.,
880 Carillon Parkway, St. Petersburg, FL 33716, became an investment
advisor in 1984. |
| |
Fund(s): |
a
portion of MidCap Growth III |
|
|
|
|
| |
Sub-Advisor: |
Emerald
Advisers, LLC (“Emerald”),
3175 Oregon Pike, Leola, PA 17540, was founded in 1991 and manages
institutional separate account and mutual fund investment portfolios for
corporations, public and private pension funds, and for individual retail
investors. |
| |
Fund(s): |
a
portion of SmallCap Growth I |
|
|
|
|
| |
Sub-Advisor: |
Grantham,
Mayo, Van Otterloo & Co. LLC (“GMO”),
53 State Street, Boston, MA 02109, is a registered investment advisor
organized in 1977. GMO manages a broad range of investment strategies,
including equity and fixed income strategies across global developed and
emerging markets, multi-asset class strategies, and alternative
strategies. |
| |
Fund(s): |
a
portion of Diversified Income (opportunistic securitized investment
sleeve) |
|
|
|
|
| |
Sub-Advisor: |
Hotchkis
and Wiley Capital Management, LLC,
601 S. Figueroa Street, 39th Floor, Los Angeles, CA 90017, is an
investment advisory firm founded in 1980 that manages value portfolios for
institutional and individual investors. |
| |
Fund(s): |
a
portion of SmallCap Value II |
|
|
|
|
| |
Sub-Advisor: |
Insight
North America LLC (“INA”),
200 Park Avenue, New York, New York 10166, is part of the group of
affiliated companies providing investment advisory services under the
brand “Insight Investment” or “Insight”. |
| |
Fund(s): |
a
portion of High Income |
|
|
|
|
| |
Sub-Advisor: |
Los
Angeles Capital Management LLC (“Los Angeles Capital”),
11150 Santa Monica Boulevard, Suite 200, Los Angeles, CA 90025, founded in
2002, is a registered investment advisor offering risk-controlled, active
equity management services to a broad range of institutional
investors. |
| |
Fund(s): |
a
portion of MidCap Value I |
|
|
|
|
| |
Sub-Advisor: |
Nuveen
Asset Management, LLC (“Nuveen Asset Management”),
333 West Wacker Drive, Chicago, IL 60606, is an investment advisor
registered with the SEC providing investment management services in a
variety of investment strategies across multiple asset
classes. |
| |
Fund(s): |
a
portion of Diversified Income (senior loan investment
strategy) |
|
|
|
|
| |
Sub-Advisor: |
Origin
Asset Management LLP (doing
business as Principal Origin)
(“Origin”),
One Carey Lane, London, EC2V 8AE, UK, manages global equity securities for
institutional clients. |
| |
Fund(s): |
International
I |
| |
The
portfolio managers operate as a team, sharing authority and responsibility for
research and the day-to-day management of the portfolio with no limitation on
the authority of one portfolio manager in relation to another.
Chris
Carter has
been with Origin since 2005. Mr. Carter is a graduate of Gonville & Caius
College, University of Cambridge, with an M.A. Honours Degree in Economics and
Philosophy.
Tarlock
Randhawa has
been with Origin since 2005. Mr. Randhawa is a graduate of Brunel University
with a B.Sc. Joint Honours Degree in Mathematics & Management.
Nerys
Weir was
with Origin from 2008 to 2016 and rejoined Origin in 2019. Ms. Weir is a
graduate of Leicester University with a B.A. Honours Degree in Ancient History
and Archaeology.
|
|
|
|
| |
Sub-Advisor: |
PineBridge
Investments LLC (“PineBridge”),
Park Avenue Tower, 65 East 55th
Street, New York, NY 10022, founded in 2010, is an investment advisor
registered with the SEC that focuses on active, high conviction investing.
|
| |
Fund(s): |
a
portion of Diversified Income (U.S. investment grade corporate bond
sleeve) |
|
|
|
|
| |
Sub-Advisor: |
Polen
Capital Credit, LLC (f/k/a
DDJ Capital Management, LLC)
(“Polen Credit”),
1075 Main Street, Suite 320, Waltham, MA 02451, is an SEC registered
investment advisor. Polen Credit was formed in 1996 and presently manages
U.S. opportunistic high yield, U.S. high yield, bank loan, and total
return credit investment strategies, along with various customized fixed
income solutions, on behalf of domestic and international investors.
|
| |
Fund(s): |
a
portion of Diversified Income (high yield strategy) and a portion of High
Income |
|
|
|
|
| |
Sub-Advisor: |
Post
Advisory Group, LLC (“Post”),
2049 Century Park East, Suite 3050, Los Angeles, CA 90067, founded in
1992, is a global investment manager specializing in high yield securities
with a multi-strategy, value-oriented investment
approach. |
| |
Fund(s): |
a
portion of Diversified Income (high yield strategy) and a portion of High
Income |
|
|
|
|
| |
Sub-Advisor: |
Principal
Real Estate Investors, LLC
(doing business as Principal Real Estate) (“Principal-REI”),
711 High Street, Des Moines, IA 50392, was founded in 2000 and manages
commercial real estate across the spectrum of public and private equity
and debt investments, primarily for institutional
investors. |
| |
Fund(s): |
Global
Real Estate Securities, Real Estate Securities, and a portion of
Diversified Income (CMBS strategy) |
| |
The
portfolio managers operate as a team, sharing authority and responsibility for
research and the day-to-day management of the portfolio with no limitation on
the authority of one portfolio manager in relation to another.
Keith
Bokota has
been with Principal-REI since 2007. He earned a bachelor’s degree in Finance and
International Business from Georgetown University. Mr. Bokota has earned the
right to use the Chartered Financial Analyst designation.
Simon
Hedger has
been with Principal - REI since 2003. He earned an M.B.A. from the University of
New England and is an associate member of both the Royal Institute of Chartered
Surveyors and of the Australian Property Institute. He is a U.K. qualified
chartered surveyor (ARICS).
Anthony
Kenkel has
been with Principal-REI since 2005. He earned a bachelor’s degree in Finance
from Drake University and an M.B.A. from the University of Chicago Graduate
School of Business. Mr. Kenkel has earned the right to use the Chartered
Financial Analyst and Financial Risk Manager designations.
Kelly
D. Rush has
been with Principal-REI since 2000 and the predecessor firms since 1987. He
earned a B.A. in Finance and an M.B.A. in Business Administration from the
University of Iowa. Mr. Rush has earned the right to use the Chartered Financial
Analyst designation.
|
|
|
|
| |
Sub-Advisor: |
Robert
W. Baird & Co. Incorporated (“Baird”),
777 East Wisconsin Avenue, Milwaukee, Wisconsin 53202, was founded in
1919. Baird provides investment management services for individuals and
institutional clients including pension and profit sharing
plans. |
| |
Fund(s): |
a
portion of MidCap Growth III |
|
|
|
|
| |
Sub-Advisor: |
Spectrum
Asset Management, Inc. (“Spectrum”),
2 High Ridge Park, Stamford, CT 06905, founded in 1987, manages portfolios
of preferred securities for corporate, pension fund, insurance, and
endowment clients; open-end and closed-end mutual funds; and separately
managed account programs for high net worth individual investors, as well
as provides volatility mitigation solutions for some client
portfolios. |
| |
Fund(s): |
a
portion of Diversified Income (preferred securities strategy) |
|
|
|
|
| |
Sub-Advisor: |
T.
Rowe Price Associates, Inc. (“T. Rowe Price”),
100 East Pratt Street, Baltimore, MD 21202, has over 75 years of
investment management experience. |
| |
Fund(s): |
a
portion of LargeCap Growth I |
|
|
|
|
| |
Sub-Advisor: |
Vaughan
Nelson Investment Management, L.P. (“Vaughan Nelson”),
600 Travis Street, Suite 3800, Houston, Texas 77002, was founded in
1970. |
| |
Fund(s): |
a
portion of SmallCap Value II |
|
|
|
|
| |
Sub-Advisor: |
Victory
Capital Management Inc. (“Victory Capital”),
15935 La Cantera Pkwy, San Antonio, TX 78256, is an SEC-registered
investment adviser that provides asset management services to individual
and institutional clients through multiple investment
franchises. |
| |
Fund(s): |
a
portion of MidCap Value I |
|
|
|
|
| |
Sub-Advisor: |
Westwood
Management Corp. (“Westwood”),
200 Crescent Court, Suite 1200, Dallas, Texas 75201, is a registered
investment advisor that was founded in 1983. |
| |
Fund(s): |
a
portion of LargeCap Value III |
The
SAI provides additional information about each portfolio manager’s compensation,
other accounts managed by the portfolio manager, and the portfolio manager’s
ownership of securities in the Funds.
Participating
Affiliate Agreement
In
rendering investment advisory services to a Fund, the advisor and each
sub-advisor may use the resources of one or more of its respective foreign
(non-U.S.) affiliates that are not registered under the Investment Advisers Act
of 1940, as amended, to provide portfolio management, research, and trading
services to the Fund. Under a Participating Affiliate Agreement, and pursuant to
applicable guidance from the Staff of the SEC, U.S. registered advisors are
allowed to use investment advisory and trading resources of such unregistered
advisory affiliates subject to the regulatory supervision of the registered
advisor. For example, some Principal Fund Complex assets are managed by
employees of Principal Global Investors (Europe) Limited pursuant to such an
arrangement. Each such affiliate and any of their respective employees who
provide services to a Fund are considered under the Participating Affiliate
Agreement to be “supervised persons” of the advisor or sub-advisor (as
applicable) as that term is defined in the Investment Advisers Act of 1940, as
amended.
Fees
Paid to PGI
Each
Fund pays PGI a fee for its services, which includes the fee PGI pays to
sub-advisors, as applicable.
The
fee each Fund paid (as a percentage of the Fund’s average daily net assets) for
the fiscal year ended October 31, 2023 was:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Fund/Portfolio |
Percentage
of the Fund’s Average Daily Net Assets |
| Fund/Portfolio |
Percentage
of the Fund’s Average Daily Net Assets |
California
Municipal |
0.40% |
| Principal
LifeTime 2035 |
0.00% |
Core
Fixed Income |
0.37% |
| Principal
LifeTime 2040 |
0.00% |
Core
Plus Bond |
0.51% |
| Principal
LifeTime 2045 |
0.00% |
Diversified
Income |
0.67% |
| Principal
LifeTime 2050 |
0.00% |
Diversified
International |
0.74% |
| Principal
LifeTime 2055 |
0.00% |
Equity
Income |
0.50% |
| Principal
LifeTime 2060 |
0.00% |
Finisterre
Emerging Markets Total Return Bond |
0.75% |
| Principal
LifeTime 2065 |
0.00% |
Global
Emerging Markets |
1.00% |
| Principal
LifeTime Hybrid Income |
0.00% |
Global
Real Estate Securities |
0.87% |
| Principal
LifeTime Hybrid 2015 |
0.00% |
Government
& High Quality Bond |
0.49% |
| Principal
LifeTime Hybrid 2020 |
0.00% |
Government
Money Market |
0.15% |
| Principal
LifeTime Hybrid 2025 |
0.00% |
High
Income |
0.61% |
| Principal
LifeTime Hybrid 2030 |
0.00% |
High
Yield |
0.51% |
| Principal
LifeTime Hybrid 2035 |
0.00% |
Inflation
Protection |
0.38% |
| Principal
LifeTime Hybrid 2040 |
0.00% |
International
I |
0.65% |
| Principal
LifeTime Hybrid 2045 |
0.00% |
LargeCap
Growth I |
0.60% |
| Principal
LifeTime Hybrid 2050 |
0.00% |
LargeCap
S&P 500 Index |
0.14% |
| Principal
LifeTime Hybrid 2055 |
0.00% |
LargeCap
Value III |
0.76% |
| Principal
LifeTime Hybrid 2060 |
0.00% |
MidCap
|
0.58% |
| Principal
LifeTime Hybrid 2065 |
0.00% |
MidCap
Growth |
0.65% |
| Real
Estate Securities |
0.80% |
MidCap
Growth III |
0.81% |
| SAM
Balanced |
0.28% |
MidCap
S&P 400 Index |
0.15% |
| SAM
Conservative Balanced |
0.28% |
MidCap
Value I |
0.64% |
| SAM
Conservative Growth |
0.28% |
Money
Market |
0.40% |
| SAM
Flexible Income |
0.28% |
Overseas
|
0.91% |
| SAM
Strategic Growth |
0.28% |
Principal
Capital Appreciation |
0.43% |
| Short-Term
Income |
0.38% |
Principal
LifeTime Strategic Income |
0.00% |
| SmallCap
|
0.74% |
Principal
LifeTime 2015 |
0.00% |
| SmallCap
Growth I |
0.85% |
Principal
LifeTime 2020 |
0.00% |
| SmallCap
S&P 600 Index |
0.15% |
Principal
LifeTime 2025 |
0.00% |
| SmallCap
Value II |
0.94% |
Principal
LifeTime 2030 |
0.00% |
| Tax-Exempt
Bond |
0.40% |
The
management fee schedules for the Principal LifeTime 2070 and Principal LifeTime
Hybrid 2070 Funds, which have not completed a full fiscal year, are as
follows:
|
|
|
|
| |
Fund |
All
Assets |
Principal
LifeTime 2070 |
0.00% |
Principal
LifeTime Hybrid 2070 |
0.00% |
Availability
of the discussions regarding the basis for the Board’s approval of various
management and sub-advisory agreements is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Semi-
Annual Report to Shareholders for the period ending
April
30, 2023 |
Annual
Report to Shareholders for the period ending
October
31, 2023 |
Semi-Annual
Report to Shareholders for the period ending
April
30, 2024 |
Fund/Portfolio |
Sub-Advisory
Agreement |
Management
Agreement |
Sub-Advisory
Agreement |
Sub-Advisory
Agreement |
Diversified
Income |
|
|
| X |
Global
Real Estate Securities |
|
|
| X |
High
Income |
|
|
| X |
International
I |
|
|
| X |
LargeCap
Growth I |
X |
|
| |
MidCap
Value I |
X |
|
| X |
Real
Estate Securities |
|
|
| X |
SmallCap
Growth I |
|
|
| X |
All
Funds/Portfolios |
| X |
X |
|
Voluntary
Waivers
Government
Money Market and Money Market Funds
PGI
has voluntarily agreed to limit the Fund's expenses to the extent necessary to
maintain a 0% yield. The voluntary expense limit may be revised or terminated at
any time without notice to the shareholders.
Manager
of Managers
The
Registrant operates as a Manager of Managers. Under an order received from the
SEC (the “Order”), the Registrant and PGI may enter into and materially amend
agreements with unaffiliated and wholly-owned affiliated sub-advisors
(affiliated sub-advisors that are at least 95% owned, directly or indirectly, by
PGI or an affiliated person of PGI) without obtaining shareholder approval,
including to:
•hire
one or more sub-advisors;
•change
sub-advisors; and
•reallocate
management fees between PGI and sub-advisors.
Although
there is no present intent to do so, the Funds may, in the future, rely on
current SEC Staff guidance that expands relief under the Order to allow PGI to
enter into and materially amend agreements with majority-owned affiliated
sub-advisors (affiliated sub-advisors that are at least 50% owned, directly or
indirectly, by PGI or an affiliated person of PGI), and, further, to all
sub-advisors regardless of the degree of affiliation with PGI.
In
order to rely on the varying degrees of relief granted by the Order and/or the
SEC Staff guidance, a Fund must receive approval from its shareholders (or, in
the case of a new Fund, the Fund’s sole initial shareholder before the Fund is
available to the other purchasers).
The
shareholders of each Fund have approved such Fund’s reliance on the Order, as
supplemented by the SEC Staff guidance, as follows:
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Fund/Portfolio |
Unaffiliated Sub-Advisors |
Wholly-Owned
Affiliated
Sub-Advisors |
Majority-Owned Affiliated
Sub-Advisors |
Any
Other
Sub-Advisors Regardless
of Degree of Affiliation |
California
Municipal |
X |
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| |
Core
Plus Bond |
X |
X |
X |
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Diversified
Income |
X |
X |
X |
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Global
Emerging Markets |
X |
X |
X |
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Global
Real Estate Securities |
X |
X |
X |
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Principal
LifeTime 2055 |
X |
X |
X |
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Principal
LifeTime 2065 |
X |
X |
X |
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Principal
Lifetime Hybrid 2055 |
X |
X |
X |
|
Principal
Lifetime Hybrid 2060 |
X |
X |
X |
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Real
Estate Securities |
X |
X |
X |
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SAM
Conservative Growth |
X |
X |
X |
|
SmallCap
Fund |
X |
X |
X |
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Tax-Exempt
Bond |
X |
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| |
All
Other Funds/Portfolios |
X |
X |
X |
X |
PGI
has ultimate responsibility for the investment performance of each Fund that
utilizes a sub-advisor due to its responsibility to oversee sub-advisors and
recommend their hiring, termination, and replacement.
In
accordance with a separate exemptive order that the Registrant and PGI have
obtained from the SEC, the Board may approve a new sub-advisory agreement or a
material amendment to an existing sub-advisory agreement at a meeting that is
not in person, provided that the Board Members are able to participate in the
meeting using a means of communication that allows them to hear each other
simultaneously during the meeting and the other conditions in the exemptive
order are met.
PRICING
OF FUND SHARES
Each
Fund’s shares are bought and sold at the current share price. The share price of
each class of each Fund is calculated each day the New York Stock Exchange
(“NYSE”) is open. Share prices are not calculated on the days on which the NYSE
is closed for trading, generally: New Year’s Day; Martin Luther King, Jr. Day;
Washington’s Birthday/ Presidents’ Day; Good Friday; Memorial Day; Juneteenth;
Independence Day; Labor Day; Thanksgiving Day; and Christmas. The
share price of each Fund (other than the Government Money Market Fund) is
determined as of the close of business of the NYSE (normally, 3:00 p.m. Central
Time). The share price of the Government Money Market Fund is normally
determined at 4:00 p.m. Central Time.
When an order to buy or sell shares is received, the share price used to fill
the order is the next price calculated after the order is received (in proper
form) at the transaction processing center in Kansas City, Missouri. To process
your transaction (purchase, redemption, or exchange) on the day it is received,
it must be received (with complete information):
• on
a day that the NYSE is open; and
•for
each Fund (other than the Government Money Market Fund), before the close of
trading on the NYSE (normally, 3:00 p.m. Central Time); or
•for
the Government Money Market Fund, before normally 4:00 p.m. Central
Time.
Orders
received after 3:00 p.m. Central Time (for all Funds, other than the Government
Money Market Fund) or 4:00 p.m. Central Time (for the Government Money Market
Fund) or on days that the NYSE is not open will be processed on the next day
that the NYSE is open for normal trading. The Funds will not treat an intraday
unscheduled disruption in NYSE trading as a closure of the NYSE and will price
shares as of 3:00 p.m. Central Time or, in the case of the Government Money
Market Fund, 4:00 p.m. Central Time, if the particular disruption directly
affects only the NYSE.
If
we receive an application or purchase request for a new mutual fund account or
subsequent purchase into an existing account that is accompanied by a check and
the application or purchase request does not contain complete information, we
may hold the application (and check) for up to two business days while we
attempt to obtain the necessary information. If we receive the necessary
information within two business days, we will process the order using the next
share price calculated. If we do not receive the information within two business
days, we will return the application and check to you.
For
all Funds, except the Government Money Market and Money Market Funds, the share
price is calculated by:
• taking
the current market value of the total assets of the Fund,
• subtracting
liabilities of the Fund,
• dividing
the remainder proportionately into the classes of the Fund,
• subtracting
the liability of each class, and
• dividing
the remainder by the total number of shares outstanding for that
class.
With
respect to any portion of a Fund’s assets invested in other registered
investment companies, that portion of the Fund's NAV is calculated based on the
price (NAV or market, as applicable) of such other registered investment
companies.
The
securities of the Government Money Market and Money Market Funds are valued at
amortized cost. The calculation procedure is described in the SAI.
Notes:
• If
market quotations are not readily available for a security owned by a Fund, its
fair value is determined using a policy adopted by the Board. Fair valuation
pricing is subjective and creates the possibility that the fair value determined
for a security may differ materially from the value that could be realized upon
the sale of the security.
• A
Fund’s securities may be traded on foreign securities markets that generally
complete trading at various times during the day before the close of the NYSE.
Foreign securities and currencies are converted to U.S. dollars using the
exchange rate in effect at the close of the NYSE. Securities traded outside of
the Western Hemisphere are valued using a fair value policy adopted by the
Registrant. These fair valuation procedures are intended to discourage
shareholders from investing in the Funds for the purpose of engaging in market
timing or arbitrage transactions.
• The
trading of foreign securities generally or in a particular country or countries
may not take place on all days the NYSE is open or may trade on days the NYSE is
closed. Thus, the value of the foreign securities held by a Fund may change on
days when shareholders are unable to purchase or redeem shares.
• Certain
securities issued by companies in emerging markets may have more than one quoted
valuation at any point in time. These may be referred to as local price and
premium price. The premium price is often a negotiated price that may not
consistently represent a price at which a specific transaction can be effected.
The Registrant has a policy to value such securities at a price at which PGI
expects the securities may be sold.
•The
securities of the Government Money Market and Money Market Funds are valued at
amortized cost. The calculation procedure is described in the SAI.
CONTACT
PRINCIPAL FUNDS, INC.
Contact
information for Principal Funds, Inc. (“Principal Funds”) is as
follows:
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Mailing
Addresses: |
Regular
Mail |
Overnight
Mail |
Principal
Funds |
Principal
Funds |
P.O.
Box 219971 |
430
W. 7th Street, Ste. 219971 |
Kansas
City, MO 64121-9971 |
Kansas
City, MO 64105-1407 |
You
may speak with a Client Relations Specialist by calling 1-800-222-5852,
between 7:00 a.m. and 7:00 p.m. Central Time on any day that the NYSE
is open.
To
obtain Automated Clearing House (“ACH”) or wire instructions, please contact a
Client Relations Specialist.
For
additional information about Principal Funds, Inc., go to
www.PrincipalAM.com.
PURCHASE
OF FUND SHARES
Principal
Funds, Inc. offers funds in multiple share classes: A, C, J, Institutional, R-1,
R-3, R-4, R-5, R-6, and S. Funds available in multiple share classes have the
same investments, but differing expenses. Institutional Class and Classes A, C,
J, R-1, R-3, R-4, R-5, and R-6 shares are available in this
Prospectus.
The
Funds reserve the right to refuse or cancel any purchase orders, including those
by exchange, for any reason. For example, the Funds do not intend to permit
market timing because short-term or other excessive trading into and out of the
Funds may harm performance by disrupting portfolio management strategies and by
increasing expenses. Accordingly, the Funds may reject any purchase orders from
market timers or investors that, in PGI’s opinion, may be disruptive to the
Funds. For these purposes, PGI may consider an investor’s trading history in the
Funds or other funds advised by PGI and accounts under common ownership or
control.
PGI
may recommend to the Board, and the Board may elect, to close certain Funds or
share classes to new investors or to close certain Funds or share classes to new
and existing investors.
The
Registrant will not issue certificates for shares.
No
salesperson, broker-dealer, or other person is authorized to give information or
make representations about a Fund other than those contained in this Prospectus.
Information or representations not contained in this Prospectus may not be
relied upon as having been provided or made by the Registrant, a Fund, PGI, any
sub-advisor, or Principal Funds Distributor, Inc.
Procedures
for Opening an Account
Classes
A and C Shares
Shares
of the Funds are generally purchased through Financial Professionals. Financial
Professionals may establish shareholder accounts according to their procedures
or they may establish shareholder accounts directly with the Funds by visiting
our website to obtain the appropriate forms.
Your
Financial Professional can help you buy shares of the Funds by mail, through
bank wire, direct deposit, or Automatic Investment Plan (“AIP”). No wires are
accepted on days when the NYSE is closed or when the Federal Reserve is closed
(because the bank that would receive your wire is closed). An investment in a
Fund may be held in various types of accounts, including individual, joint
ownership, trust, and business accounts. The Funds also offer a range of
custodial accounts for those who wish to invest for retirement and/or education
expenses. Prospective shareholders should consult with their Financial
Professional before making decisions about the account and type of investment
that are appropriate for them.
Class
J Shares
Class
J shares are currently available through registered representatives
of:
•Principal
Securities, Inc. (“PSI”) who are also employees of Principal Life distribution
channels used to directly market certain products and services of subsidiaries
of Principal Financial Group, Inc. as well as provide retirement plan services
and education on topics such as investing and retirement. These PSI registered
representatives are with Principal Connection (part of Principal Bank),
and
•Selected
broker-dealers that have entered into a selling agreement to offer Class J
shares.
Class
J shares are also available through an online IRA rollover tool on
www.principal.com.
For
more information about Class J shares of the Funds, please call Principal
Connection at 1-800-247-8000.
Institutional
Class and Classes R-1, R-3, R-4, R-5, and R-6 Shares
Shares
of the Funds are generally purchased through Financial Professionals. There are
no sales charges on Institutional Class and Classes R-1, R-3, R-4, R-5, and R-6
shares of the Funds.
Shareholder
accounts in these share classes are generally maintained under an open account
system. Under this system, an account is opened and maintained for each investor
(generally within an omnibus account, plan level account, or institutional
investor). Each investment is confirmed by sending the investor a statement of
account showing the current purchase or sale and the total number of shares
owned. The statement of account is treated by the Funds as evidence of ownership
of Fund shares. Contact your Financial Professional for additional information
on how to buy shares.
Verification
of Identity
To
help the government fight the funding of terrorism and money laundering
activities, Federal law requires financial institutions to obtain, verify, and
record information that identifies each person who opens an account. When you
open an account, we (or your Financial Professional) may ask for your name,
address, date of birth, and other information that will allow us (or your
Financial Professional) to verify your identity. We (or your Financial
Professional) may also ask to see your driver’s license or other identifying
documents.
If
concerns arise with verification of your identity, no transactions, other than
redemptions, will be permitted while we attempt to reconcile the concerns. If we
are unable to verify your identity on a timely basis, we may close your account
or take such other action as we deem appropriate.
The
Funds will not establish accounts with foreign addresses. If an existing
shareholder with a U.S. address moves to a foreign location and updates the
address on the shareholder’s account, we are unable to process any purchases or
exchanges on that account. The Funds will not establish accounts that are for
the benefit of a business/organization that is illegal under Federal and/or
state law (such as a marijuana clinic) or a person who owns or receives income
from such an entity or whose source of funds is illegal.
Eligible
Purchasers
You
must be an eligible purchaser for a particular share class to buy shares of a
Fund available in that share class. At the sole discretion of the Distributor,
the Fund may broaden or limit the designation of eligible purchasers, permit
certain types of investors to open new accounts, impose further restrictions on
purchases, or reject any purchase orders, all without prior notice. The Funds'
shares may not be offered in every state. Please check with your Financial
Professional or our home office for state availability.
Institutional
Class and Classes R-1, R-3, R-4, R-5, and R-6 Shares
Some
eligible purchasers (as listed below) purchase shares through plans or other
intermediaries; such plans or intermediaries may impose fees in addition to
those charged by the Funds. The services or share classes available to you may
vary depending upon how you wish to purchase shares of the Fund. Each investor’s
financial considerations are different. You should speak with your Financial
Professional to help you decide which share class is best for you.
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Eligible
purchasers currently include, but are not limited to: |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
retirement
and pension plans to which Principal Life Insurance Company (“Principal
Life”) provides recordkeeping services |
X |
X |
X |
X |
X |
X |
separate
accounts of Principal Life |
X |
X |
X |
X |
X |
X |
Principal
Life or any of its subsidiaries or affiliates |
X |
X |
X |
X |
X |
X |
any
fund distributed by PFD if the fund seeks to achieve its investment
objective by investing primarily in shares of mutual funds |
X |
X |
X |
X |
X |
X |
clients
of Principal Global Investors, LLC |
X |
X |
X |
X |
X |
X |
certain
employer sponsored retirement plans with plan level omnibus
accounts |
X |
X |
X |
X |
X |
X |
certain
pension plans and employee benefit plans |
X |
X |
X |
X |
X |
X |
certain
retirement account investment vehicles administered by foreign or domestic
pension plans |
X |
X |
X |
X |
X |
X |
an
investor who buys shares through an omnibus account with certain
intermediaries, such as a broker-dealer, bank, or other financial
institution, pursuant to a written agreement between the intermediary and
PFD or its affiliate |
X |
X |
X |
X |
X |
X |
certain
retirement plan clients that have an organization, approved by Principal
Life, for purposes of providing plan recordkeeping services |
X |
X |
X |
X |
X |
X |
investors
investing at least $1,000,000 per fund |
X |
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sponsors,
recordkeepers, or administrators of wrap account, mutual fund asset
allocation, or fee-based programs or participants in those
programs |
X |
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certain
institutional investors that provide recordkeeping for retirement plans or
other employee benefit plans |
X |
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| X |
institutional
clients that Principal Life has approved for purposes of providing plan
recordkeeping |
X |
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| X |
institutional
investors investing for their own account, including banks, trust
companies, financial intermediaries, corporations, endowments and
foundations |
X |
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| X |
collective
trust funds, fund of funds or other pooled investment vehicles, and
entities acting for the account of a public entity |
X |
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| X |
certain
clients of a private banking division pursuant to a written agreement
between the bank and PFD or its affiliate |
X |
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the
portfolio manager of any advisor to the fund |
X |
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certain
institutional investors with special arrangements (for example, insurance
companies, employee benefit plans, retirement plans, and Section 529
Plans, among others) |
X |
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retirement
plans and IRAs investing through a retirement marketplace enabled by state
legislation |
X |
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Class
R-1 Shares
Effective
January 31, 2017, the Registrant no longer offers Class R-1 shares for purchase
from new retirement plans, except in limited circumstances. However, if a
retirement plan currently offers Class R-1 shares, such plan will be allowed to
continue to invest in this share class through Funds it currently offers in its
plans or Funds it adds to its plans.
MidCap
Fund
For
retail investors (i.e., non-employer sponsored retirement plan investors),
effective as of the close of the NYSE on June 14, 2013, and for
employer-sponsored retirement plan investors, effective as of the close of the
NYSE on August 15, 2013, the MidCap Fund is no longer available for purchases
from new investors except in limited circumstances, such as the
following:
•Shareholders,
including those in omnibus accounts, who owned shares of the MidCap Fund as of
June 14, 2013 (for retail investors, i.e., non-employer sponsored retirement
plan investors) or August 15, 2013 (for employer-sponsored retirement plan
investors), may continue to make purchases, exchanges, and dividend or capital
gains reinvestment in existing accounts.
•Registered
Investment Advisor (RIA) and bank trust firms that have an investment allocation
to the MidCap Strategy (i.e., investments in the same strategy used in
collective investment trust, separately managed accounts, individually managed
accounts, or insurance separate accounts) in a fee-based, wrap, or advisory
account, may continue to add new clients, purchase shares, and exchange into the
MidCap Fund. The MidCap Fund will not be available to new RIA and bank trust
firms.
•Shareholders
through accounts at private banks may continue to purchase shares and exchange
into the MidCap Fund. Private banks that have an investment allocation to the
MidCap Strategy may add new clients to the MidCap Fund. The MidCap Fund will not
be available to private bank or private bank platforms not already investing in
the MidCap Strategy.
•Shareholders
in broker/dealer wrap or fee-based programs that have an investment allocation
to the MidCap Fund may continue to purchase shares and exchange into the MidCap
Fund. Existing broker/dealer wrap or fee-based programs may add new
participants.
•Shareholders
in certain types of retirement plans (including 401(k)s, SEPs, SIMPLEs, 403(b)s,
etc.) may continue to purchase shares and exchange into the MidCap Fund. New
participants in these plans may elect to purchase shares of the MidCap
Fund.
•Shareholders
within brokerage accounts may continue to purchase shares of the MidCap Fund;
however, new brokerage accounts will not be permitted to begin investing in the
MidCap Fund after June 14, 2013.
•529
plans that include the MidCap Fund within their investment options may continue
to purchase shares and exchange into the MidCap Fund.
•Investors
who have a direct investment in the MidCap Strategy may, subject to the approval
of the Distributor, purchase shares in the MidCap Fund.
•Shareholders
that invest through accounts with Principal Securities, Inc.
At
the sole discretion of the Distributor, the MidCap Fund may permit certain types
of investors to open new accounts, impose further restrictions on purchases, or
reject any purchase orders, all without prior notice.
Money
Market Fund
The
Money Market Fund qualifies as a retail money market fund; therefore, it uses
amortized cost to value its portfolio securities, transacts at a $1.00 share
price, and maintains a $1.00 stable NAV.
Natural
Persons. As a retail money market fund, the Money Market Fund has adopted
policies and procedures reasonably designed to limit all beneficial owners of
the Fund to natural persons (whether investing directly or through an
intermediary). A natural person is an individual human being with sole or shared
voting and/or investment power over the investment. New sales or exchanges into
the Money Market Fund by investors who do not meet the definition of a natural
person (whether investing directly or through an intermediary) will not be
allowed. If a non-natural person invests (whether directly or through an
intermediary) in the Money Market Fund, the Money Market Fund will involuntarily
redeem those investors. The Money Market Fund will provide 60-days advance
notice prior to involuntarily redeeming shares owned by investors who do not
meet the definition of a natural person (whether investing directly or through
an intermediary).
Investment
Company Purchasers
Each
Fund is an investment company registered with the SEC under the 1940 Act. If a
purchaser of Fund shares is also a registered investment company or a private
fund relying on Section 3(c)(1) or Section 3(c)(7) of the 1940 Act, it may be
limited by the 1940 Act in the amount of Fund shares it can purchase (i.e.,
Section 12(d)(1)(A)). Such purchaser must comply with such limitations or avail
itself, if possible, of any applicable exemptions from such limitations (e.g., a
registered investment company may rely on Rule 12d1-4 of the 1940
Act).
Minimum
Investments
Classes
A, C, and J Shares
Principal
Funds has a minimum initial investment amount of $1,000 and a minimum subsequent
investment amount of $100. Initial and subsequent investment minimums apply on a
per-Fund basis for each Fund in which a shareholder invests.
Shareholders
must meet the minimum initial investment amount of $1,000 unless an Automatic
Investment Plan (“AIP”) is established. With an AIP, the minimum initial
investment is $100. Accounts or automatic payroll deduction plans established
with an AIP that do not meet the minimum initial investment must maintain
subsequent automatic investments that total at least $1,200
annually.
Minimum
initial and subsequent investments may be waived on accounts set up for: certain
employee benefit plans; retirement plans qualified under Internal Revenue Code
Section 401(a); payroll deduction plans submitting contributions in an
electronic format devised and/or approved by the Fund; and purchases through an
omnibus account with a broker-dealer, investment advisor, or other financial
institution.
Institutional
Class and Classes R-1, R-3, R-4, R-5, and R-6 Shares
There
are no minimum initial or subsequent investment requirements for an investor who
otherwise qualifies as an eligible purchaser.
Payment
Classes
A, C, and J Shares
Payments
are to be made via personal or financial institution check (for example, a bank
or cashier’s check), bank wire, direct deposit, or Automatic Investment Plan
(“AIP”). No wires are accepted on days when the NYSE is closed or when the
Federal Reserve is closed (because the bank that would receive your wire is
closed). We consider your purchase of Fund shares by check to be your
authorization to make an automated clearing house (“ACH”) debit entry to your
account. We reserve the right to refuse any payment that we feel presents a
fraud or money laundering risk. Examples of the types of payments we will not
accept are cash, starter checks, money orders, travelers’ checks, credit card
checks, and foreign checks.
The
Funds may, in their discretion and under certain limited circumstances, accept
securities as payment for Fund shares at the applicable net asset value
(“‘NAV”). For federal income tax purposes, a purchase of shares with securities
will be treated as a sale or exchange of such securities on which the investor
will generally realize a taxable gain or loss. Each Fund will value securities
used to purchase its shares using the same method the Registrant uses to value
its portfolio securities as described in this Prospectus.
You
may reinvest your redemption proceeds, dividend payment, or capital gain
distribution without an initial sales charge or contingent deferred sales
charge, in the same share class of any other Fund of Principal Funds within 90
days of the date of the redemption. To purchase the shares without a sales
charge (initial or contingent deferred) as described in this section, the
shareholder must notify Principal Funds at the time of reinvestment that the
shareholder is reinvesting proceeds within 90 days of the date of redemption.
The original redemption will be considered a sale for federal (and state) income
tax purposes even if the proceeds are reinvested within 90 days. If a loss is
realized on the sale, the reinvestment may be subject to the “wash sale” rules
resulting in the postponement of the recognition of the loss for tax
purposes.
Your
Financial Professional can help you make a direct deposit from your paycheck (if
your employer approves) or from a government allotment. Direct deposit allows
you to deposit automatically all or part of your paycheck (or government
allotment) to your Principal Funds account(s). You can request a Direct Deposit
Authorization Form to give to your employer or the governmental agency (either
of which may charge a fee for this service). Shares will be purchased on the day
the ACH notification is received by the transfer agent’s bank. On days when the
NYSE is closed, but the bank receiving the ACH notification is open, your
purchase will be priced at the next calculated share price.
Your
Financial Professional can help you establish an Automatic Investment Plan
(“AIP”). You may make regular monthly investments with automatic deductions from
your bank or other financial institution account. You select the day of the
month the deduction is to be made (if none is selected, the investment will be
made on the 15th of the month). If that date is a non-trading day, we will
process the deduction on the next trading day. If the next trading day falls in
the next month or year, we will process the deduction on the day before your
selected day.
Institutional
Class and Classes R-1, R-3, R-4, R-5, and R-6 Shares
Payments
are generally to be made through your plan or intermediary. We reserve the right
to refuse any payment that we feel presents a fraud or money laundering risk.
Examples of the types of payments we will not accept are cash, starter checks,
money orders, travelers’ checks, credit card checks, and foreign
checks.
For
Institutional Class shareholders investing through a retirement marketplace
enabled by state legislation, please contact Principal Funds by calling
1-800-222-5852, between 7:00 a.m. and 7:00 p.m. Central Time on any day that the
NYSE is open.
Automatic
Conversion of Class C Shares
Effective
April 19, 2021, Class C shares held for eight years after purchase will
automatically convert to Class A shares of the same Fund. The automatic
conversion will generally occur on the 22nd day of each month or, if the 22nd
day is not a business day, on the next business day (each, a “Conversion Date”).
If the eighth anniversary of a purchase of Class C shares falls on a Conversion
Date, a shareholder’s Class C shares will be automatically converted on that
date. If the eighth anniversary occurs between Conversion Dates, a shareholder’s
Class C shares will be automatically converted on the next Conversion Date after
such anniversary. Automatic conversions will be on the basis of the NAV per
share, without the imposition of any sales charge (including a CDSC), fee, or
other charge. Automatic conversions of Class C shares will constitute tax-free
exchanges for federal income tax purposes.
Class
C shares of a Fund acquired through a reinvestment of dividends and
distributions will convert to Class A shares of the Fund on the Conversion Date
pro rata with the converting Class C shares of that Fund that were not acquired
through reinvestment of dividends and distributions.
Class
C shares held through a financial intermediary in certain omnibus accounts may
be converted by the financial intermediary once it is determined that the Class
C shares have been held for the required period. It is the financial
intermediary’s (and not the Fund’s) responsibility to maintain appropriate
supporting records and to ensure that the shareholder is credited with the
proper holding period, and it is the responsibility of the shareholder or their
financial intermediary to determine that the shareholder is eligible for the
conversion. Additionally, some intermediaries may have adopted different
policies and procedures related to the conversion of Class C shares, including
shorter schedules for conversion. Please consult with your financial
intermediary if you have any questions.
REDEMPTION
OF FUND SHARES
Under
normal circumstances, you may redeem shares of any class of the Funds at any
time. There is no fee for any redemption. The Board has determined that it is
not necessary to impose a fee upon the redemption of Fund shares because the
Fund has adopted transfer restrictions as described in EXCHANGE OF FUND
SHARES.
The
shares you redeem will have the NAV per share that is next computed after the
Fund receives and accepts your redemption order in proper and complete form. The
amount you receive will be reduced by any applicable CDSC except as noted below;
see CHOOSING A SHARE CLASS AND THE COSTS OF INVESTING — One-Time Fee —
Contingent Deferred Sales Charge (“CDSC”) — CDSC Waiver. Your redemption
proceeds will generally be sent on the next business day (a day when the NYSE is
open for normal business) following the date on which your request is received
and accepted in proper and complete form. Although you can redeem your shares at
any time, if you purchased shares by check or ACH and subsequently request a
redemption of those shares, your redemption proceeds will generally be delayed
for seven calendar days after the purchase to allow a sufficient period of time
to ensure your recent payment has been cleared by the relevant bank. To redeem
shares purchased by check or ACH within the previous seven days, the Funds
require redemption requests with respect to those shares to be submitted in
writing or by telephone, unless you contact the Fund and make an alternate
arrangement.
Under
unusual circumstances, a Fund may suspend redemptions, or postpone payments for
more than seven days, as permitted by federal securities law.
Under
normal circumstances, the Funds expect to meet redemption requests through
holdings of cash, the sale of investments held in cash equivalents, and/or by
selling liquid index futures or other instruments used for cash management
purposes. In situations in which such holdings are not sufficient to meet
redemption requests, a Fund will typically borrow money through the Fund’s
interfund lending facility or through a bank line-of-credit. No Fund can borrow
under the bank line-of-credit while also a lender under the interfund lending
facility. Funds may also choose to sell portfolio assets for the purpose of
meeting such requests. Each Fund further reserves the right to distribute “in
kind” securities from the Fund’s portfolio in lieu (in whole or in part) of cash
under certain circumstances, including under stressed market
conditions.
The
agreement for the above-mentioned line of credit is with The Bank of New York
Mellon.
Classes
A, C, and J Shares
You
will be charged a $10 wire fee if you have the sale proceeds wired to your bank.
It may take additional business days for your financial institution to post this
payment to your account at that financial institution. At your request, the
check will be sent overnight (a $15 overnight fee will be deducted from your
account unless other arrangements are made).
Distributions
from IRA, SEP, SIMPLE, 403(b), and SAR-SEP accounts may be taken
as:
•lump
sum of the entire interest in the account,
•partial
interest in the account, or
•periodic
payments of either a fixed amount or an amount based on certain life expectancy
calculations.
Tax
penalties may apply to distributions before the participant reaches
age 59½.
Selling
shares may create a gain or a loss for federal (and state) income tax purposes.
You should maintain accurate records for use in preparing your income tax
returns.
Generally,
sales proceeds are:
•payable
to all owners on the account (as shown in the account registration)
and
•mailed
to the address on the account (if not changed within the last 15 days) or
sent by wire or ACH to previously authorized U.S. bank account (if not added or
changed within the last 15 days).
For
other payment arrangements, please call Principal Funds. You should also call
Principal Funds for special instructions that may apply to sales from
accounts:
•when
an owner has died;
•for
certain employee benefit plans; or
•owned
by corporations, partnerships, agents, or fiduciaries.
Except
as described above, you may redeem shares of the Funds in any of the following
ways:
By
Mail
To
sell shares by mail, you must:
•Send
a letter or our distribution form, which is signed by an owner of the
account,
•Specify
the account number, and
•Specify
the number of shares or the dollar amount to be sold.
If
you send a letter rather than our distribution form, the letter must be in a
form acceptable to the Fund.
By
Telephone or Website, in amounts of $100,000 or less
To
sell shares by telephone:
•The
request may be made by a shareholder or by the shareholder’s Financial
Professional.
•The
combined amount requested from all funds to which the redemption request relates
is $100,000 or less.
•The
address on the account must not have been changed within the last 15 days
and telephone privileges must apply to the account from which the shares are
being sold.
•Wire
or ACH to a previously authorized U.S. bank account that must not have been
added or changed within the last 15 days.
•If
our phone lines are busy or our website is unavailable, you may need to send in
a written sell order.
Telephone
and/or Website redemption privileges are NOT available for all account
types.
Class
A shares of Money Market Fund: Sell shares by checkwriting
•Checkwriting
must be elected on initial application or by written request to Principal Funds.
Such election continues in effect until the Fund receives written notice
revoking or changing the election.
•The
Fund can only sell shares after your check making the Fund investment has
cleared your bank.
•Checks
must be written for at least $250. The Fund reserves the right to increase the
minimum check amount.
•The
rules of the bank on which the checks are drawn concerning checking accounts
apply.
•If
the account does not have sufficient funds to cover the check, it is marked
“Insufficient Funds” and returned (the Fund may revoke checkwriting on accounts
on which “Insufficient Funds” checks are drawn).
•Accounts
may not be closed by withdrawal check (accounts continue to earn dividends until
checks clear and the exact value of the account is not known until the check is
received by the bank).
•Checkwriting
is available only for non-qualified accounts.
•Neither
the Fund, the bank, nor PGI shall incur any liability for honoring the checks,
selling shares to pay checks, or for returning checks unpaid.
•Checkwriting
may be converted to a point-of-purchase debit from your account. This only
applies if such service is available at the business with which you are doing
business.
Classes
A, C, J, and Institutional Shares - Systematic Withdrawal Plans
You
may set up a systematic withdrawal plan on a monthly, quarterly, semiannual, or
annual basis to sell enough shares to provide a fixed amount of money ($100
minimum amount; the required minimum is waived to the extent necessary to meet
the required minimum distribution as defined by the Internal Revenue
Code).
You
can set up a systematic withdrawal plan by:
•completing
the applicable section of the application,
•sending
us your written instructions,
•completing
a Systematic Withdrawal Plan Request form, or
•calling
us if you have telephone privileges on the account (telephone privileges may not
be available for all types of accounts).
Your
systematic withdrawal plan continues until:
•you
instruct us to stop or
•your
Fund account balance is zero.
When
you set up the withdrawal plan, you select which day you want the sale made (if
none is selected, the sale will be made on the 15th of the month). If the
selected date is not a trading day, the sale will take place on the preceding
trading day (if that day falls in the month or year before your selected date,
the transaction will take place on the next trading day after your selected
date). If telephone privileges apply to the account, you may change the date or
amount by telephoning us. Sales made under your systematic withdrawal plan will
reduce and may eventually exhaust your account. The Fund from which the
systematic withdrawal is made makes no recommendation as to either the number of
shares or the fixed amount that you withdraw.
Institutional
Class and Classes R-1, R-3, R-4, R-5, and R-6 Shares
You
may redeem shares of the Funds in any of the following ways:
Through
an Employer Sponsored Retirement Plan Administrator or
Record-Keeper
If
you own Fund shares in an eligible retirement or employee benefit plan, you must
sell your shares through the plan’s administrator or record-keeper.
Through
your Financial Professional
If
your Fund shares are held for you in nominee form, you must sell those shares
through your intermediary or dealer.
By
Mail
To
sell shares by mail, you must:
•Send
a letter or our distribution form, which is signed by an owner of the account,
•Specify
the account number, and
•Specify
the number of shares or the dollar amount to be sold.
If
you send a letter rather than our distribution form, the letter must be in a
form acceptable to the Fund.
By
Telephone
To
sell shares by telephone:
•Telephone
privileges must apply to the account from which the shares are
sold.
•A
shareholder or the shareholder’s Financial Professional may request to sell
shares by telephone.
•A
maximum amount (listed below) of redemption requests will be permitted per day
per account, as the combined amount from all funds, provided the proceeds are to
be sent to a previously authorized U.S. bank account that must not have been
added or changed within the last 15 days:
◦$10,000,000
for Institutional Class.
◦$500,000
for Classes R-1, R-3, R-4, R-5, and R-6.
•A
maximum of $500,000 of redemption requests will be permitted per day, as the
combined amount from all funds, provided the proceeds are to be sent by check
through the mail to the address on the account and such address must not have
changed within the last 15 days.
•If
our telephone lines are busy, you may need to send in a written sell
order.
Distributions
in Kind
Payment
for shares of the Funds tendered for redemption is ordinarily made by check.
However, the Funds may determine that it would be detrimental to the remaining
shareholders of a Fund to make payment of a redemption order wholly or partly in
cash. Under certain circumstances, therefore, each of the Funds may pay the
redemption proceeds in whole or in part by a distribution of “in kind” of
securities from the Fund’s portfolio in lieu of cash. If a Fund pays the
redemption proceeds in kind, the redeeming shareholder might incur brokerage or
other costs in selling the securities for cash. In addition, the securities
received will be subject to market risk until sold. Typically, such in kind
redemptions would be distributed pro rata. Each Fund will value securities used
to pay redemptions in kind using the same method the Registrant uses to value
its portfolio securities as described in this Prospectus.
Money
Market Fund
Liquidity
Fees on Redemptions.
As a retail money market fund, the Money Market Fund has adopted policies and
procedures regarding the imposition of liquidity fees on redemptions. The
imposition of liquidity fees affects checkwriting and exchanges into the Money
Market Fund.
Imposition.
If the Money Market Fund’s Board determines that a liquidity fee is in the best
interests of the Fund, the Fund must institute a liquidity fee (not to exceed 2%
of the value of the shares redeemed). This discretionary liquidity fee will be
applied to all shares for which redemption requests are submitted.
Duration.
A discretionary liquidity fee will commence if the Board determines to impose it
(as early as the same day the Board makes the determination) and will remain in
place until the Board determines that imposing the discretionary liquidity fee
is no longer in the best interests of the Money Market Fund.
Investor
Communications.
The Money Market Fund will communicate the imposition or lifting of a liquidity
fee in various ways, including:
•filing
a prospectus supplement,
•filing
Form N-CR, and/or
•posting
information on its website.
Use
of Fee Proceeds
The
liquidity fees imposed by the Money Market Fund will be used to offset the costs
of liquidity incurred by the Fund for redeeming shareholders and to protect the
Fund’s NAV.
Tax
Consequences to the Money Market Fund and Investors of the Fund’s Receipt of
Liquidity Fees
It
is currently anticipated that shareholders of money market funds that impose a
liquidity fee may generally treat the fee on the redemption as offsetting the
shareholder’s amount realized on the redemption (thereby decreasing the
shareholder’s gain, or increasing the shareholder’s loss, on the redeemed
amount). The fund anticipates using 100% of a liquidity fee to help repair a
market-based net asset value per share that was below $1.00.
Liquidity
fees are expected to be non-taxable to the Fund. A money market fund that uses
amortized cost to maintain a stable share price of $1.00 may need to distribute
to its remaining shareholders sufficient value to prevent the fund from breaking
the buck on the upside (i.e., by rounding up to $1.01 in pricing its shares), if
the imposition of liquidity fees causes the fund’s market-based net asset value
to reach $1.0050. To the extent that the fund has sufficient earnings and
profits to support the distribution, the additional dividends would be taxable
as ordinary income to shareholders and would be eligible for deduction by the
funds. Any distribution in excess of the fund’s earnings and profits is treated
as a return of capital, which would reduce your cost basis in the fund
shares.
Liquidation.
If the Government Money Market Fund or Money Market Fund, at the end of a
business day, has invested less than 10% of its total assets in weekly liquid
assets or if the Government Money Market Fund’s or Money Market Fund’s price per
share, rounded to the nearest one percent, has deviated from $1.00 or the Board
determines that such deviation is likely to occur, the Board can irrevocably
approve the liquidation of the Government Money Market Fund or Money Market
Fund. The Money Market Fund does not have to impose liquidity fees or redemption
gates prior to making the determination to liquidate.
EXCHANGE
OF FUND SHARES
An
exchange between Funds is a redemption of shares of one Fund and a concurrent
purchase of shares in another Fund with the redemption proceeds. All exchanges
completed on the same day are considered a single exchange for purposes of the
exchange limitations described below. To prevent excessive exchanges, and under
other circumstances where the Board or PGI believes it is in the best interests
of the Fund, the Fund reserves the right to revise or terminate this exchange
privilege, limit the amount or further limit the number of exchanges, reject any
exchange, or close an account.
Classes
A, C, and J Shares
Your
shares in the Funds (except Money Market) may be exchanged without a sales
charge or CDSC for the same class of any other Principal Funds. However, the
original purchase date of the shares from which an exchange is made is used to
determine if newly acquired shares are subject to a CDSC when they are sold. The
Fund reserves the right to revise or terminate the exchange privilege at any
time.
You
may exchange shares by:
•sending
a written request to Principal Funds,
•using
our website, or
•calling
us, if you have telephone privileges on the account.
Exchanges
from Money Market Fund
Class A
shares of Money Market Fund may be exchanged into:
•Class A
shares of other Funds.
•If
Money Market Fund shares were acquired by direct purchase, a sales charge will
be imposed on the exchange into other Class A shares.
•If
Money Market Fund shares were acquired by (1) exchange from other Funds,
(2) conversion of Class B shares, or (3) reinvestment of
dividends earned on Class A shares that were acquired through exchange, no
sales charge will be imposed on the exchange into other Class A
shares.
•Class C
shares of other Funds - subject to the applicable CDSC.
Automatic
Exchange Election
This
election authorizes an exchange from one Fund of Principal Funds to another Fund
of Principal Funds on a monthly, quarterly, semi-annual, or annual basis. You
can set up an automatic exchange by:
•completing
the Automatic Exchange Election section of the application,
•calling
us if telephone privileges apply to the account from which the exchange is to be
made,
•sending
us your written instructions, or
•completing
an Automatic Exchange Election form.
Your
automatic exchange continues until:
•you
instruct us to stop (by calling us if telephone privileges apply to the account
or sending us your written instructions) or
•your
Fund account balance of the account from which shares are redeemed is
zero.
You
may specify the day of the exchange (if none is selected, the exchange will be
made on the 15th of the month). If the selected day is not a trading day, the
sale will take place on the preceding trading day (if that day falls in the
month or year before your selected date, the transaction will take place on the
next trading day after your selected date). If telephone privileges apply to the
account, you may change the date or amount by telephoning us.
General
•An
exchange by any joint owner is binding on all joint owners.
•If
you do not have an existing account in the Fund to which the exchange is being
made, a new account is established. The new account has the same owner(s),
dividend and capital gain options, and dealer of record as the account from
which the shares are being exchanged.
•All
exchanges are subject to the minimum investment and eligibility requirements of
the Fund being acquired.
•You
may acquire shares of a Fund only if its shares are legally offered in your
state of residence.
When
money is exchanged or transferred from one account registration or tax
identification number to another, the account holder is relinquishing his or her
rights to the money. Therefore, exchanges and transfers can only be accepted by
telephone if the exchange (transfer) is between:
•accounts
with identical ownership,
•an
account with a single owner to one with joint ownership if the owner of the
single owner account is also an owner of the account with joint
ownership,
•a
single owner to a Uniform Transfers to Minors Act (“UTMA”) account if the owner
of the single owner account is also the custodian on the UTMA account,
or
•a
single or jointly owned account to an IRA account to fund the yearly IRA
contribution of the owner (or one of the owners in the case of a jointly owned
account).
The
exchange is treated as a sale of shares for federal (and state) income tax
purposes and may result in a capital gain or loss.
Fund
shares used to fund an employee benefit plan may be exchanged only for shares of
other Funds available to the employee benefit plan. Such an exchange must be
made by following the procedures provided in the employee benefit plan and the
written service agreement.
Institutional
Class and Classes R-1, R-3, R-4, R-5, and R-6 Shares
A
shareholder, which may include a beneficial owner of shares held in nominee name
or a participant in a participant-directed employee benefit plan, may exchange
Fund shares under certain circumstances. In addition to any restrictions an
intermediary (which may include, without limitation, an employee retirement plan
or other employee benefit plan, plan administrator, plan record keeper, or
managed account provider) imposes, Fund shares may be exchanged, without charge,
for shares of the same share class of any other Fund of the Principal Funds,
provided that:
•the
shareholder has not exchanged shares of the Fund within 30 days preceding the
exchange, unless the shareholder is exchanging into the Money Market
Fund,
•the
share class of such other Fund is available through the
intermediary,
•the
share class of such other Fund is available in the shareholder’s state of
residence, and
•with
respect to shares purchased through an intermediary that is willing and able to
impose the 30-day exchange or repurchase restriction described below, the
shareholder has not exchanged shares of the Fund within 30 days preceding the
exchange, unless the shareholder is exchanging into the Money Market
Fund.
With
respect to shares purchased through an intermediary that is willing and able to
impose a 30-day exchange or repurchase restriction, an order to purchase shares
of any Fund, except shares of the Money Market Fund, will be rejected if the
shareholder redeemed shares from that Fund within the preceding 30-day period.
The 30-day exchange or purchase restriction does not apply to exchanges or
purchases made on a scheduled basis such as scheduled periodic portfolio
rebalancing transactions or to transactions by managers of funds of funds in
shares of the underlying Funds.
If
Fund shares are purchased through an intermediary that is unable or unwilling to
impose the 30-day exchange or repurchase restriction described above, Fund
management may waive this restriction based on:
•exchange
and repurchase limitations that the intermediary is able to impose if, in
management’s judgment, such limitations are reasonably likely to prevent
excessive trading in Fund shares; or
•the
implementation of other transaction monitoring management believes is reasonably
likely to identify and prevent excessive trading in Fund shares.
The
Funds' transfer agent employs transaction monitoring that management believes is
reasonably likely to identify and prevent excessive trading in Fund shares. The
30-day exchange or repurchase restriction described above is not imposed with
respect to shares held directly with the Funds' transfer agent. However, such
shares may be purchased through an intermediary that imposes such an exchange or
repurchase restriction.
Shares
of the Government Money Market Fund are not available for
exchanges.
DIVIDENDS
AND DISTRIBUTIONS
Dividends
are based on estimates of income, expenses, and shareholder activity for the
Fund. Actual income, expenses, and shareholder activity may differ from
estimates; consequently, differences, if any, will be included in the
calculation of subsequent dividends. Each Fund pays its net investment income to
record date shareholders. The payment schedule is as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Fund/Portfolio |
Daily |
Monthly |
Quarterly
(March,
June, September, and December) |
Yearly
(in
December) |
California
Municipal |
X |
|
| |
Core
Fixed Income |
X |
|
| |
Core
Plus Bond |
| X |
| |
Diversified
Income |
| X |
| |
Diversified
International |
|
|
| X |
Equity
Income |
|
| X |
|
Finisterre
Emerging Markets Total Return Bond |
| X |
| |
Global
Emerging Markets |
|
|
| X |
Global
Real Estate Securities |
|
|
| X |
Government
& High Quality Bond |
X |
|
| |
Government
Money Market |
X |
|
| |
High
Income |
| X |
| |
High
Yield |
X |
|
| |
Inflation
Protection |
|
|
| X |
International
I |
|
|
| X |
LargeCap
Growth I |
|
|
| X |
LargeCap
S&P 500 Index |
|
|
| X |
LargeCap
Value III |
|
|
| X |
MidCap |
|
|
| X |
MidCap
Growth |
|
|
| X |
MidCap
Growth III |
|
|
| X |
MidCap
S&P 400 Index |
|
|
| X |
MidCap
Value I |
|
|
| X |
Money
Market |
X |
|
| |
Overseas |
|
|
| X |
Principal
Capital Appreciation |
|
|
| X |
Principal
LifeTime 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060,
2065, 2070 |
|
|
| X |
Principal
LifeTime Hybrid 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055,
2060, 2065, 2070 |
|
|
| X |
Principal
LifeTime Hybrid Income |
|
|
| X |
Principal
LifeTime Strategic Income |
|
|
| X |
Real
Estate Securities |
|
| X |
|
SAM
Balanced |
|
| X |
|
SAM
Conservative Balanced |
|
| X |
|
SAM
Conservative Growth |
|
|
| X |
SAM
Flexible Income |
| X |
| |
SAM
Strategic Growth |
|
|
| X |
Short-Term
Income |
X |
|
| |
SmallCap |
|
|
| X |
SmallCap
Growth I |
|
|
| X |
SmallCap
S&P 600 Index |
|
|
| X |
SmallCap
Value II |
|
|
| X |
Tax-Exempt
Bond |
X |
|
| |
For
more details on the payment schedule, go to:
www.principal.com/tax-center.
Daily
dividend funds declare dividends of daily net investments income each day their
shares are priced. Daily funds distribute their accumulated declared dividends
monthly. You may ask to have your dividends paid to you in cash. If you do not
request cash payment, your dividend will be applied to purchase additional
shares of the Fund monthly.
Net
realized capital gains, if any, are distributed annually in December. Payments
are made to shareholders of record on the business day before the payable date.
Capital gains may be taxable at different rates, depending on the length of time
that the Fund holds its assets.
The
Government Money Market and Money Market Funds do not seek to realize any
capital gains or losses. If capital gains or losses were to occur, they could
result in an increase or decrease in dividends.
Dividend
and capital gains distributions will be reinvested, without a sales charge, in
shares of the Fund from which the distribution is paid; however, you may
authorize (on your application or at a later time) the distribution to
be:
•invested
in shares of another of the Principal Funds without a sales charge
(distributions of a Fund may be directed only to one receiving Fund);
or
•paid
in cash, if the amount is $10 or more.
Generally,
for federal income tax purposes, Fund distributions are taxable as ordinary
income, except that any distributions of long-term capital gains will be taxed
as such, regardless of how long Fund shares have been held. Special tax rules
apply to Fund distributions to Individual Retirement Accounts and other
retirement plans. A tax advisor should be consulted to determine the suitability
of the Fund as an investment by such a plan and the tax treatment of
distributions by the Fund. A tax advisor can also provide information on the
potential impact of possible foreign, state, and local taxes. A Fund’s
investments in foreign securities may be subject to foreign withholding taxes.
In that case, the Fund’s yield on those securities would be
decreased.
To
the extent that distributions the Fund pays are derived from a source other than
net income (such as a return of capital), you will receive a notice disclosing
the source of such distributions. Furthermore, such notice will be posted
monthly on our website at www.principal.com/tax-center. You may request a copy
of all such notices, free of charge, by telephoning 1-800-222-5852. The amounts
and sources of distributions included in such notices are estimates only and you
should not rely upon them for purposes of reporting income taxes. The Fund will
send shareholders a Form 1099-DIV for the calendar year that will tell
shareholders how to report these distributions for federal income tax
purposes.
A
Fund’s payment of income dividends and capital gains has the effect of reducing
the share price by the amount of the payment. Distributions from a Fund, whether
received in cash or reinvested in additional shares, may be subject to federal
(and state) income tax. For these reasons, buying shares of a Fund shortly
before it makes a distribution may be disadvantageous to you.
FREQUENT
PURCHASES AND REDEMPTIONS
The
Funds are not designed for, and do not knowingly accommodate, frequent purchases
and redemptions of Fund shares. If you intend to trade frequently and/or use
market timing investment strategies, you should not purchase these
Funds.
Frequent
purchases and redemptions pose a risk to the Funds because they
may:
• Disrupt
the management of the Funds by:
◦forcing
the Funds to hold short-term (liquid) assets rather than investing for long-term
growth, which results in lost investment opportunities for the Funds;
and
◦causing
unplanned portfolio turnover;
•Hurt
the portfolio performance of the Funds; and
•Increase
expenses of the Funds due to:
• increased
broker-dealer commissions and
• increased
recordkeeping and related costs.
Certain
Funds may be at greater risk of harm due to frequent purchases and redemptions.
For example, those Funds that invest in foreign securities may appeal to
investors attempting to take advantage of time-zone arbitrage. The Funds have
adopted procedures to “fair value” foreign securities owned by the Funds each
day to discourage these market timing transactions in shares of the
Funds.
The
Board has also adopted policies and procedures with respect to frequent
purchases and redemptions of shares of the Funds. The Funds monitor shareholder
trading activity to identify and take action against abuses. When we do identify
abusive trading, we will apply our policies and procedures in a fair and uniform
manner. While our policies and procedures are designed to identify and protect
against abusive trading practices, there can be no certainty that we will
identify and prevent abusive trading in all instances. If we are not able to
identify such excessive trading practices, the Funds and their shareholders may
be harmed. The harm of undetected excessive trading in shares of the underlying
funds in which the funds of funds invest could flow through to the funds of
funds as they would for any fund shareholder. If we, or a Fund, deem abusive
trading practices to be occurring, we will take action that may include, but is
not limited to:
•Rejecting
exchange instructions from the shareholder or other person authorized by the
shareholder to direct exchanges;
•Restricting
submission of exchange requests by, for example, allowing exchange requests to
be submitted by 1st class U.S. mail
only and disallowing requests made by facsimile, overnight courier, telephone or
via the internet;
•Limiting
the number of exchanges during a year; and
•Taking
such other action as directed by the Fund.
We
expect the Government Money Market Fund to be used by shareholders for
short-term investing and by certain selected accounts utilizing the Fund as a
sweep vehicle. Therefore, reasonably frequent purchases and redemptions of Fund
shares by shareholders do not present risks for other shareholders of the Fund,
and the policies and procedures adopted by the Board of the Fund as applicable
to other Funds are generally not applicable with respect to frequent purchases
and redemptions of Fund shares.
The
Funds have reserved the right to accept or reject, without prior written notice,
any exchange requests. In some instances, an exchange may be completed before a
determination of abusive trading. In those instances, we will reverse the
exchange and return the account holdings to the positions held before the
exchange. We will give the shareholder written notice in this
instance.
Institutional
Class and Classes R-1, R-3, R-4, R-5, and R-6 Shares
In
addition to taking any of the foregoing actions, if we, or a Fund, deem abusive
trading practices to be occurring, we may require a holding period of a minimum
of 30 days before permitting exchanges among the Funds where there is evidence
of at least one round-trip exchange (exchange or redemption of shares that were
purchased within 30 days of the exchange/redemption).
The
Funds have adopted an exchange frequency restriction for these classes,
described above in “Exchange of Fund Shares” to limit excessive trading in fund
shares.
TAX
CONSIDERATIONS
It
is a policy of each Fund to make distributions of substantially all of its
respective investment income and any net realized capital gains. Shareholders
are responsible for federal income tax (and any other taxes, including state and
local income taxes, if applicable) on dividends and capital gains distributions
whether such dividends or distributions are paid in cash or are reinvested in
additional shares. Special tax rules apply to distributions from IRAs and other
retirement accounts. You should consult a tax advisor to determine the
suitability of the Fund as an investment by such a plan and the tax treatment of
Fund distributions.
Generally,
dividends paid by the Funds from interest, dividends, or net short-term capital
gains will be taxed as ordinary income. Distributions properly designated by the
Fund as deriving from net gains on securities held for more than one year are
taxable as such (generally at a 15% tax rate for individuals and taxable trusts,
some individuals and taxable trusts will be subject to a 20% tax rate),
regardless of how long you have held your shares. Distributions of investment
income properly designated by the Fund as derived from “qualified dividend
income” will be taxed at the rates applicable to long-term capital gains. Some
high-income individuals and taxable trusts will be subject to a Medicare 3.8%
tax on unearned net investment income.
A
return of capital is a non-dividend distribution that is not paid out of the
earnings and profits of the Fund. A return of capital distribution is generally
not taxed until your investment in the Fund has been recovered. A return of
capital reduces your cost basis in the Fund, which may increase your tax
liability upon the sale of your Fund shares or upon subsequent distributions in
respect of your investment in the Fund.
Because
of tax law requirements, you must provide the Fund with an accurate and
certified taxpayer identification number (for individuals, generally a Social
Security number) to avoid “back-up” withholding, which is imposed at a rate of
24%. The Fund is required, in certain cases, to withhold and remit to the U.S.
Treasury 24% of ordinary income dividends and capital gain dividends, and the
proceeds of redemption of shares, paid to any shareholder who has provided
either an incorrect tax identification number or no number at all, who is
subject to backup withholding by the Internal Revenue Service for failure to
report the receipt of interest or dividend income properly, or who has failed to
certify to the Fund that it is not subject to backup withholding or that it is a
corporation or other “exempt recipient.”
A
shareholder recognizes gain or loss on the sale or redemption of shares of the
Fund in an amount equal to the difference between the proceeds of the sales or
redemption and the shareholder’s adjusted tax basis in the shares. All or a
portion of any loss so recognized may be disallowed if the shareholder purchases
other shares of the Fund within 30 days before or after the sale or redemption.
In general, any gain or loss arising from (or treated as arising from) the sale
or redemption of shares of the Fund is considered capital gain or loss
(long-term capital gain or loss if the shares were held for longer than one
year). However, any capital loss arising from the sales or redemption of shares
held for six months or less is disallowed to the extent of the amount of
exempt-interest dividends received on such shares and (to the extent not
disallowed) is treated as a long-term capital loss to the extent of the amount
of capital gain dividends received on such shares. Capital losses in any year
are deductible only to the extent of capital gains plus, in the case of a
non-corporate taxpayer, $3,000 of ordinary income under current
rules.
If
a shareholder incurs a sales charge in acquiring shares of the Fund, disposes of
such shares less than 91 days after they are acquired, and subsequently acquires
shares of the Fund or another fund at a reduced sales charge pursuant to a right
to reinvest at such reduced sales charge acquired in connection with the
acquisition of the shares disposed of, then the sales charge on the shares
disposed of (to the extent of the reduction in the sales charge on the shares
subsequently acquired) shall not be taken into account in determining gain or
loss on the shares disposed of but shall be treated as incurred on the
acquisition of the shares subsequently acquired.
Any
gain resulting from the redemption or exchange of your shares will generally
also be subject to tax. For shares acquired after January 1, 2012, you will need
to select a cost basis method to be used to calculate your reported gains and
losses prior to or at the time of any redemption or exchange. If you do not
select a method, the Funds' default method of average cost will be applied to
the transactions. The cost basis method used on your account could significantly
affect your taxes due and should be carefully considered. You should consult
your tax advisor for more information on your own tax situation, including
possible foreign, state, and local taxes.
Investments
by a Fund in certain debt instruments or derivatives may cause the Fund to
recognize taxable income in excess of the cash generated by such instruments. As
a result, the Fund could be required at times to liquidate other investments to
satisfy its distribution requirements under the Internal Revenue Code. The
Fund’s use of derivatives will also affect the amount, timing, and character of
the Fund’s distributions.
Under
U.S. Treasury Regulations, non-corporate Fund shareholders meeting certain
holding period requirements may be able to deduct up to 20% of qualified REIT
dividends passed through and reported to them by the Fund. The 20% deduction
applies to qualified REIT dividends distributed during 2018-2025 tax
years.
Early
in each calendar year, each Fund will notify you of the amount and tax status of
distributions paid to you for the preceding year.
A
dividend or distribution made shortly after the purchase of shares of a Fund by
a shareholder, although in effect a return of capital to that shareholder, would
be taxable to that shareholder as described above, subject to a holding period
requirement for dividends designated as qualified dividend income.
In
addition, the Funds have elected and intend to qualify and be eligible to be
treated each year as regulated investment companies ("RICs") under the Internal
Revenue Code of 1986, as amended (the "Code"). The Funds must satisfy certain
diversification and qualifying income tests under the Code in order to qualify
as RICs. If a Fund were to fail to qualify and be eligible to be treated as a
RIC, the Fund would be subject to corporate-level taxation, thereby reducing the
return on a shareholder's investment. In addition, a Fund could be required to
recognize unrealized gains, pay taxes, and make distributions (which could be
subject to interest charges) before requalifying for taxation as a
RIC.
The
information contained in this Prospectus is not a complete description of the
federal, state, local, or foreign tax consequences of investing in the Funds.
You should consult your tax advisor before investing in the Funds.
Funds
Investing in Securities Generating Tax-Exempt Income
Distributions
designated as “exempt-interest dividends” by a Fund investing in securities
generating tax-exempt income are generally not subject to federal income tax.
However, if you receive Social Security or railroad retirement benefits, you
should consult your tax advisor to determine what effect, if any, an investment
in such Funds may have on the federal taxation of your benefits. Some Funds may
invest in “AMT-subject bonds,” which are municipal obligations issued to finance
certain “private activities,” such as bonds used to finance airports, housing
projects, student loan programs, and water and sewer projects. Interest on
AMT-subject bonds is an item of tax preference for purposes of the federal
individual alternative minimum tax (“AMT”). A portion of such Funds'
distributions may, therefore, be subject to federal income taxes or to the
federal individual alternative minimum tax. Some Funds may invest a portion of
their assets in securities that generate income that is not exempt from federal
(or state and local) income tax. Income exempt from federal tax may be subject
to state and local income tax. In addition, any capital gains distributed by
such Funds will be taxable as described in this section. A portion of the
dividends paid by such Funds may be exempt from California State personal income
tax, but not from California State franchise tax or California State corporate
income tax. Corporate taxpayers should consult their tax advisor concerning the
California state tax treatment of investments in such Funds.
CHOOSING
A SHARE CLASS AND THE COSTS OF INVESTING
Before
you invest, you should understand the characteristics of each share class so you
can be sure to choose the class that is right for you. Fund and share class
selections must be made at the time of purchase.
Classes
differ regarding the costs associated with buying, redeeming, and holding
shares. Which class is best for you depends upon:
•the
dollar amount you are investing,
•the
amount of time you plan to hold the investment,
•any
plans to make additional investments in the Principal Funds, and
•eligibility
to purchase the class.
The
following sections describe the fees and expenses you may pay if you invest in a
Fund. You may pay both one-time fees and ongoing fees. Fees and expenses are
important because they lower your earnings. Before investing, you should be sure
you understand the nature of different costs. Your Financial Professional can
help you with this process and can help you choose the share class and Fund or
Funds that are appropriate for you based upon your investment objective, risk
tolerance, and other factors. Financial Professionals may receive different
compensation depending upon which class of shares you purchase.
Fees
and Expenses of the Funds
Classes
A, C, and J Shares
These
share classes may include a front-end sales charge and/or contingent deferred
sales charge. There is no sales charge on shares of the Funds purchased with
reinvested dividends or other distributions. You may obtain more information
about sales charge reductions and waivers from your Financial
Professional.
In
some cases, the initial sales charge or contingent deferred sales charge may be
waived or reduced. Appendix B to this Prospectus, titled “Intermediary-Specific
Sales Charge Waivers and Reductions,” contains information about
intermediary-specific sales charge waivers and reductions that will be available
if you purchase Fund shares through those intermediaries. The Prospectus
discusses the initial sales charge or contingent deferred sales charge waivers
or reductions that will be available if you purchase Fund shares directly from
the Fund or through another intermediary not listed on Appendix B.
In
all instances, to receive a waiver or reduction in the initial sales charge or
contingent deferred sales charge, you or your Financial Professional must let
the Fund know at the time you purchase or redeem shares that you qualify for
such a waiver or reduction. It may be necessary for you to provide information
and records, such as account statements, to determine your eligibility. If you
or your Financial Professional do not let the Fund know that you are eligible
for a waiver or reduction, you may not receive a sales charge discount to which
you are otherwise entitled.
Class
C Shares
Class
C shares may not be suitable for large investments. Due to the higher expenses
associated with Class C shares, it may be more advantageous for investors
currently purchasing, intending to purchase, or with existing assets in amounts
that may qualify for a reduced sales charge on Class A shares, including through
Rights of Accumulation and/or Statement of Intent, to purchase Class A shares.
Class C shares have higher annual expenses than Class A shares because they are
subject to higher distribution fees.
The
Fund seeks to prevent investments in Class C shares by shareholders with at
least $1 million of investments in Principal Funds eligible for inclusion
pursuant to Rights of Accumulation. If you are making an initial purchase of
Principal Funds of $1,000,000 or more and have selected Class C shares, the
purchase will be of Class A shares of the Fund(s) you have selected. If you are
making subsequent purchases into your existing Principal Funds Class C share
accounts and the combined value of the subsequent investment and your existing
Classes A, C, and J share accounts combined for Rights of Accumulation purposes
exceeds $1,000,000, the subsequent investment will be applied to purchase Class
A shares of the Fund(s) you have selected.
Institutional
Class and Classes R-1, R-3, R-4, R-5, and R-6 Shares
Fund
shares are sold without a front-end sales charge and do not have a contingent
deferred sales charge. There is no sales charge on Fund shares purchased with
reinvested dividends or other distributions.
However,
if you purchase Institutional Class or Class R-6 shares through certain programs
offered by certain financial intermediaries, you may be required to pay a
commission and/or other forms of compensation to the broker, or to your
Financial Professional or other financial intermediary. Shares of each Fund are
usually available in other share classes that have different fees and
expenses.
One-Time
Fee - Initial Sales Charge
Class
A Shares
The
offering price for Class A shares is the NAV next calculated after receipt of an
investor’s order in proper form by the Fund or its servicing agent, plus any
applicable initial sales charge as shown in the table below. The right-hand
column in the table indicates what portion of the sales charge is paid to
Financial Professionals and their brokerage firms (“dealers”) for selling Class
A shares.
Note: Because
of rounding in the calculation of the offering price, the actual maximum
front-end sales charge paid by an investor may be higher or lower than the
percentages noted.
For
more information regarding compensation paid to dealers, see “Distribution Plans
and Intermediary Compensation.”
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Fund(s):
California Municipal, Tax-Exempt Bond |
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Class
A Sales Charge as % of: |
Dealer
Allowance as % |
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Amount
of Purchase |
Offering
Price |
Amount
Invested |
of
Offering Price |
|
Less
than $100,000 |
3.75% |
3.90% |
3.00% |
|
$100,000
but less than $250,000 |
2.75% |
2.83% |
2.25% |
| $250,000
or more |
0.00% |
0.00% |
0.00%* |
* |
The
Distributor may pay authorized dealers commissions on purchases of Class A
shares over $250,000 calculated as follows: 1.00% on purchases between
$250,000 and $4,999,999, 0.75% on purchases between $5 million and
$9,999,999, 0.50% on purchases between $10 million and 49,999,999, and
0.25% on purchases of $50 million or more. The commission rate is
determined based on the cumulative investments over the life of the
account combined with the investments in existing Classes A, C, and J
shares. |
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Fund(s):
Core Fixed Income, Government & High Quality Bond |
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Class
A Sales Charge as % of: |
Dealer
Allowance as % |
|
Amount
of Purchase |
Offering
Price |
Amount
Invested |
of
Offering Price |
|
Less
than $100,000 |
2.25% |
2.30% |
2.00% |
|
$100,000
but less than $250,000 |
1.75% |
1.78% |
1.50% |
|
$250,000
but less than $500,000 |
1.25% |
1.27% |
1.00% |
|
$500,000
or more |
0.00% |
0.00% |
0.00%* |
* |
The
Distributor may pay authorized dealers commissions on purchases of Class A
shares over $500,000 calculated as follows: 1.00% on purchases between
$500,000 and $4,999,999, 0.50% on purchases between $5 million and
$49,999,999, and 0.25% on purchases of $50 million or more. The commission
rate is determined based on the cumulative investments over the life of
the account combined with the investments in existing Classes A, C, and J
shares. |
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Fund(s)/Portfolio(s):
Core Plus Bond, Diversified Income, High Yield, Principal LifeTime 2020,
Principal
LifeTime 2030, Principal LifeTime Strategic Income, SAM Flexible
Income |
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Class
A Sales Charge as % of: |
Dealer
Allowance as % |
|
Amount
of Purchase |
Offering
Price |
Amount
Invested |
of
Offering Price |
|
Less
than $100,000 |
3.75% |
3.90% |
3.00% |
|
$100,000
but less than $250,000 |
2.75% |
2.83% |
2.25% |
|
$250,000
but less than $500,000 |
1.50% |
1.52% |
1.00% |
|
$500,000
or more |
0.00% |
0.00% |
0.00%* |
* |
The
Distributor may pay authorized dealers commissions on purchases of Class A
shares over $500,000 calculated as follows: 1.00% on purchases between
$500,000 and $4,999,999, 0.50% on purchases between $5 million and
$49,999,999, and 0.25% on purchases of $50 million or more. The commission
rate is determined based on the cumulative investments over the life of
the account combined with the investments in existing Classes A, C, and J
shares. |
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Fund(s):
Short-Term Income |
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Class
A Sales Charge as % of: |
Dealer
Allowance as % |
|
Amount
of Purchase |
Offering
Price |
Amount
Invested |
of
Offering Price |
|
Less
than $100,000 |
2.25% |
2.30% |
2.00% |
|
$100,000
but less than $250,000 |
1.75% |
1.78% |
1.50% |
|
$250,000
or more |
0.00% |
0.00% |
0.00%* |
* |
The
Distributor may pay authorized dealers commissions on purchases of Class A
shares over $250,000 calculated as follows: 1.00% on purchases between
$250,000 and $4,999,999, 0.50% on purchases between $5 million and
49,999,999, and 0.25% on purchases of $50 million or more. The commission
rate is determined based on the cumulative investments over the life of
the account combined with the investments in existing Classes A, C, and J
shares. |
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Fund(s):
LargeCap S&P 500 Index |
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Class
A Sales Charge as % of: |
Dealer
Allowance as % |
| Amount
of Purchase |
Offering
Price |
Amount
Invested |
of
Offering Price |
| Less
than $50,000 |
1.50% |
1.52% |
1.25% |
| $50,000
but less than $100,000 |
1.25% |
1.27% |
1.00% |
| $100,000
but less than $250,000 |
1.00% |
1.01% |
0.75% |
| $250,000
but less than $500,000 |
0.75% |
0.76% |
0.50% |
| $500,000
but less than $1,000,000 |
0.50% |
0.50% |
0.25% |
| $1,000,000
or more |
0.00% |
0.00% |
0.25% |
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All
other Funds/Portfolios (except Money Market Fund, for which there is no
Class A sales charge) |
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Class
A Sales Charge as % of: |
Dealer
Allowance as % |
|
Amount
of Purchase |
Offering
Price |
Amount
Invested |
of
Offering Price |
| Less
than $50,000 |
5.50% |
5.82% |
4.75% |
| $50,000
but less than $100,000 |
4.75% |
4.99% |
4.00% |
| $100,000
but less than $250,000 |
3.75% |
3.90% |
3.00% |
| $250,000
but less than $500,000 |
3.00% |
3.09% |
2.50% |
| $500,000
but less than $1,000,000 |
2.00% |
2.04% |
1.75% |
| $1,000,000
or more |
0.00% |
0.00% |
0.00%* |
* |
The
Distributor may pay authorized dealers commissions on purchases of Class A
shares over $1 million calculated as follows: 1.00% on purchases between
$1,000,000 and $4,999,999, 0.50% on purchases between $5 million and
$49,999,999, and 0.25% on purchases of $50 million or more. The commission
rate is determined based on the cumulative investments over the life of
the account combined with the investments in existing Classes A, C, and J
shares. |
Initial
Sales Charge Waiver or Reduction
Class
A shares of the Funds may be purchased without a sales charge or at a reduced
sales charge. The availability of certain sales charge waivers and reductions
will depend on whether you purchase your shares directly from the Fund or
through a financial intermediary. Intermediaries may have different policies and
procedures regarding the availability of initial (front-end) sales charge
waivers or reductions. Such
intermediary-specific sales charge variations are described in Appendix B to
this prospectus, titled “Intermediary-Specific Sales Charge Waivers and
Reductions.” If you purchase Fund shares through an intermediary listed on
Appendix B, you will be eligible to the receive only the intermediary’s
applicable waivers and reductions described on Appendix B. If you purchase Fund
shares directly from the Fund or through an intermediary not listed on Appendix
B, you will be eligible to receive only the following initial sales charge
waivers and reductions.
In all instances, it is your responsibility to notify the Fund or your financial
intermediary at the time of purchase of any relationship or other facts
qualifying you for sales charge waivers or reductions.
Initial
Sales Charge Waiver - For Purchases of Fund Shares From the Fund or Through
Intermediaries Not Listed on Appendix B
•No
initial sales charge will apply to purchases of Fund shares if the purchase is
of sufficient size as disclosed in the preceding “Class A Sales Charges”
table.
•You
may reinvest the Funds’ Class A share redemption proceeds without a sales charge
within 90 days of the redemption, if you previously paid a sales charge. Shares
invested directly within the Class A Money Market Fund are not eligible for this
waiver; however, shares in the Money Market Fund that were obtained by exchange
of another Fund that imposed an initial sales charge are eligible.
•A
Fund’s Class A shares may be purchased without an initial sales charge by
the following individuals, groups, and/or entities:
•current
and former Directors of Principal Funds, member companies of
Principal®,
and their active or retired employees, officers, directors, brokers, or agents
(for the life of the account). This also includes their immediate family members
(spouse, domestic partner, children (regardless of age and including in-laws),
and parents, including in-laws) and trusts created by or primarily for the
benefit of these individuals;
•any
employee or registered representative (and their immediate family members and
employees) of an authorized broker-dealer or company that makes available shares
of a Fund;
•clients
investing in Class A shares through a “wrap account” or investment product
offered through broker-dealers, registered investment advisors, and other
financial institutions under which clients may pay a fee to the broker-dealer,
registered investment advisor, or financial institution;
•any
investor who buys Class A shares through an omnibus account held by financial
intermediaries, such as a bank, broker-dealer, or other financial institution,
and that does not accept or charge the initial sales charge;
•financial
intermediaries who offer shares to self-directed investment brokerage
accounts;
•retirement
plans or benefit plans, or participants in such plans, where the plan’s
investments in the Fund are part of an omnibus account. For clarification, such
plans do not include individual retirement arrangements under IRC Section 408,
such as Simplified Employee Pensions (SEP), SIMPLE IRAs or other IRAs;
and
•shareholders
who acquired Class A shares of Principal Capital Appreciation Fund through that
fund's acquisition of Class J shares of the LargeCap Blend Fund II.
•The
following two bullet points are only applicable to intermediaries that are
affiliated with Principal Financial Group, Inc. A Fund’s Class A shares may be
purchased without an initial sales charge by the following individuals, groups,
and/or entities:
•Premier
Credit Union when the shares are owned directly with Principal Funds;
and
•non-ERISA
clients of Principal Global Investors LLC.
Initial
Sales Charge Reduction - For Purchases of Fund Shares From the Fund or Through
Intermediaries Not Listed on Appendix B
(1)Rights
of Accumulation. The sales charge varies with the size of your purchase.
Purchases made by (i) you, your spouse or domestic partner, your children
(including children of your spouse or domestic partner) age 25 or under, and/or
a trust created by or primarily for the benefit of such persons (together “a
Qualified Purchaser”) will be combined along with the value of existing Classes
A, C, and J shares of Principal Funds owned by such persons, plus (ii) the value
of holdings by you or an immediate family member which includes your spouse,
domestic partner, parent, legal guardian, child, sibling, stepchild, and father-
or mother-in law of Classes A, C, and R Units of the Scholar’s Edge 529 Plan, to
determine the applicable sales charge. Class A shares of the Money Market Fund
are not included in the calculation unless they were acquired in exchange from
other Principal Fund shares. If the total amount being invested in the Principal
Funds is near a sales charge breakpoint, you should consider increasing the
amount invested to take advantage of a lower sales charge.
(2)Statement
of Intent (SOI). Qualified Purchasers may obtain reduced sales charges by
signing an SOI. The SOI is a nonbinding obligation on the Qualified Purchaser to
purchase the full amount indicated in the SOI. Purchases made by you, your
spouse or domestic partner, or the children of you, your spouse or domestic
partner up to and including the age of 25 and/or a trust created by or primarily
for the benefit of such persons (together “a Qualified Purchaser”) will be
combined along with the value of existing Classes A, C, and J shares of
Principal Funds owned by such persons. Purchases of Class A shares of Money
Market Fund are not included. The sales charge is based on the total amount to
be invested in a 13-month period. If the intended investment is not made (or
shares are sold during the 13-month period), sufficient shares will be sold to
pay the additional sales charge due. If a shareholder who signs an SOI dies
within the 13-month period, no additional front-end sales charge will be
required and the SOI will be considered met. An SOI is not available for 401(a)
plan purchases.
(3)The
maximum sales charge that applies to purchases of Class A shares by qualified
plans administered by Expertplan, Inc. that were previously converted from B
share plans is the sales charge that applies to purchases of at least $250,000
but less than $500,000 as described in the sales charge tables; the regular
sales charge applies to purchases of $500,000 or more in such accounts and to
all purchases of the Diversified Income Fund, LargeCap S&P 500 Index Fund,
and Short-Term Income Fund shares.
(4)The
maximum sales charge for all purchases made in an account that is included in a
SIMPLE IRA, SEP, SAR-SEP, non-qualified deferred compensation, or payroll
deduction plan established before March 1, 2002 with Principal Management
Corporation as the Funds' transfer agent, is the sales charge that applies to
purchases of at least $100,000 but less than $250,000 as described in the sales
charge tables; the regular sales charge applies to purchases of $250,000 or more
in such accounts and to all purchases of the Diversified Income Fund, LargeCap
S&P 500 Index Fund, and Short-Term Income Fund shares. The reduced sales
charge applies to purchases made by or on behalf of participants to such plans
who became participants on or before July 28, 2007.
Class
C Shares
Purchases
of Class C shares are not subject to a front-end sales load. The offering price
for Class C shares is the NAV next calculated after receipt of an investor’s
order in proper form by the Fund or its servicing agent, with no initial sales
charge. The Distributor currently pays authorized dealers commissions of up to
1.00% of the amount invested in Class C shares.
Institutional
Class and Classes J, R-1, R-3, R-4, R-5, and R-6 Shares
Purchases
of these classes of shares are not subject to a front-end sales load. The
offering price for such shares is the NAV next calculated after receipt of an
investor’s order in proper form by the Fund or its servicing agent, with no
initial sales charge.
One-Time
Fee - Contingent Deferred Sales Charge ("CDSC")
If
you sell (redeem) shares and the CDSC is imposed, it will reduce the amount of
sales proceeds.
The
CDSC is based on the lesser of the market value at the time of redemption or the
initial purchase price of the shares sold. The CDSC does not apply to shares
purchased with reinvested dividends or other distributions. The CDSC is not
charged on exchanges. However, the original purchase date of the shares from
which an exchange is made determines if the newly acquired shares are subject to
the CDSC when they are sold.
If
you sell some but not all of the shares in your account, the shares not subject
to a CDSC will be sold first. Other shares will be sold in the order purchased
(first in, first out). The CDSC does not apply to shares redeemed according to a
systematic withdrawal plan limited to no more than 1.00% per month (measured
cumulatively for non-monthly plans) of the value of the Fund account at the
time, and beginning on the date, the systematic withdrawal plan is
established.
Class
A Shares
Class
A shares purchased in amounts that are of sufficient size to qualify for a 0.00%
sales charge, as disclosed in the “Class A Sales Charges” table, are generally
subject to a CDSC of 1.00% (0.25% for the LargeCap S&P 500 Index Fund) if
the shares are redeemed during the first 18 months after purchase (12 months
after purchase for the California Municipal, Short-Term Income, and Tax-Exempt
Bond Funds), unless the dealer, at its discretion, has waived the commission.
The Distributor may pay authorized dealers commissions up to 1.00% of the price
of such purchases.
There
is no CDSC on Class A shares of the Money Market Fund that are directly
purchased by the shareholder. However, for Class A Money Market Fund shares that
are obtained through an exchange of shares from another Fund, the CDSC
originally applicable to the purchase of such Fund’s shares will continue to
apply.
The
CDSC generally will not be imposed on redemptions of shares purchased through an
omnibus account with certain financial intermediaries, such as a bank or other
financial institution, where no sales charge payments were advanced for
purchases made through these entities.
Class
C Shares
Each
initial and subsequent purchase of Class C shares is subject to a CDSC of 1.00%
for a period of 12 months from the date of purchase. Shares will be redeemed
first from shares purchased through reinvested dividends and capital gain
distributions, which are not subject to the CDSC, and then in order of purchase.
Within 90 days after the sale of Class C shares, you may reinvest any amount of
the sale proceeds in Class C shares and those shares purchased will not be
subject to the 12-month CDSC.
Class
J Shares
If
you sell your Class J shares within 18 months of purchase, a CDSC may be imposed
on the shares sold. The CDSC, if any, is determined by multiplying by 1.00% the
lesser of the market value at the time of redemption or the initial purchase
price of the shares sold. Within 90 days after the sale of Class J shares, you
may reinvest the amount of the sale proceeds into any Principal Funds Class J
shares Fund; shares purchased by redemption proceeds are not subject to the
eighteen-month CDSC.
Institutional
Class and Classes R-1, R-3, R-4, R-5, and R-6 Shares
These
share classes are not subject to a CDSC.
CDSC
Waiver
The
CDSC may be waived on Classes A, C, and J shares of the Funds; waivers vary
depending on how shares are purchased. Certain waivers and reductions apply when
shares are purchased directly from the Fund; others apply when shares are
purchased through an intermediary. Intermediaries may have different policies
and procedures regarding the availability of waivers or reductions of the CDSC.
Such
intermediary-specific sales charge variations are described in Appendix B to
this Prospectus, titled “Intermediary-Specific Sales Charge Waivers and
Reductions.” If you purchase Fund shares through an intermediary listed on
Appendix B, you will be eligible to the receive only the intermediary’s
applicable waivers and reductions described on Appendix B. If you purchase Fund
shares directly from the Fund or through an intermediary not listed on Appendix
B, you will be eligible to receive only the following CDSC waivers and
reductions.
In all instances, it is your responsibility to notify the Fund or your financial
intermediary at the time of redemption of any facts qualifying you for sales
charge waivers or reductions.
CDSC
Waiver - For Purchases of Fund Shares From the Fund or Through Intermediaries
Not Listed on Appendix B
For
Classes A, C, and J shares, the CDSC is waived on shares:
•redeemed
within 90 days after an account is re-registered due to a shareholder's
death;
•redeemed
to pay surrender fees;
•redeemed
to pay retirement plan fees;
•redeemed
involuntarily from accounts with small balances;
•redeemed
due to the shareholder's disability (as defined by the Internal Revenue Code)
provided the shares were purchased before the disability;
•redeemed
from retirement plans to satisfy minimum distribution rules under the Internal
Revenue Code;
•redeemed
from a retirement plan to assure the plan complies with the Internal Revenue
Code;
•redeemed
from retirement plans qualified under Section 401(a) of the Internal Revenue
Code due to the plan participant's death, disability, retirement, or separation
from service after attaining age 55;
•redeemed
from retirement plans to satisfy excess contribution rules under the Internal
Revenue Code; or
•redeemed
using a systematic withdrawal plan (up to 1% per month (measured cumulatively
with respect to non-monthly plans) of the value of the fund account at the time,
and beginning on the date, the systematic withdrawal plan begins). (The free
withdrawal privilege not used in a calendar year is not added to the free
withdrawal privileges for any following year.)
For
Class J shares, the CDSC also is waived on shares:
•redeemed
that were purchased pursuant to the Small Amount Force Out program (SAFO);
or
•of
the Money Market Fund redeemed within 30 days of the initial purchase if the
redemption proceeds are transferred to another Principal IRA, defined as either
a fixed or variable annuity issued by Principal Life Insurance Company to fund
an IRA, a Principal Bank IRA product, or a WRAP account IRA sponsored by
Principal Securities, Inc.
Ongoing
Fees
The
ongoing fees are the operating expenses of a Fund, which are described in the
“Annual Fund Operating Expenses” table included in the Summary for each Fund.
These expenses reduce the value of each share you own. Because they are ongoing,
they increase the cost of investing in the Funds.
Each
fund of funds, as a shareholder in the underlying funds, bears its pro rata
share of the operating expenses incurred by each underlying fund. The investment
return of each fund of funds is net of the underlying funds’ operating
expenses.
Each
Fund pays ongoing fees to PGI and others who provide services to the Fund. These
fees include:
•Management
Fee (all Classes) - Through the Management Agreement with the Registrant, PGI
has agreed to provide investment advisory services and corporate administrative
services to the Funds.
•Distribution
Fee (Classes A, C, J, R-1, R-3, and R-4) - Each Fund has adopted a
distribution plan under Rule 12b-1 of the 1940 Act for the foregoing classes,
with the exception of the Money Market Fund, Class A. Under the plan, these
classes of each Fund pay a distribution fee based on the average daily NAV of
the Fund. These fees pay distribution and other expenses for the sale of Fund
shares and for services provided to shareholders. Because they are ongoing fees,
over time, these fees may exceed other types of sales charges.
•Other
Expenses (all Classes) - A portion of certain expenses are allocated to all
classes of the Funds, unless an expense is specific to a particular share class.
Other expenses include, for example, interest expense, expenses related to fund
investments, and index licensing fees. Additional examples of other expenses
include:
◦Transfer
Agent Fee (all Classes) - Principal Shareholder Services, Inc. (“PSS”) has
entered into a Transfer Agency Agreement with the Registrant under which PSS
provides transfer agent services to these classes. For Class J shares, these
services are currently provided at a rate that includes a profit; for Classes A,
C, Institutional, and R-6 shares, these services are currently provided at cost.
The Fund does not pay for these services for Classes R-1, R-3, R-4, and R-5
shares.
◦Certain
Operating Expenses (Institutional Class and Classes A, C, J, and
R-6) — Expenses of registering and qualifying shares for sale, the
cost of producing and distributing reports and prospectuses to shareholders of
these classes, the cost of shareholder meetings held solely for shareholders of
these classes, and other operating expenses of the Fund.
◦Service
Fee (Classes R-1, R-3, R-4, and R-5) — PGI has entered into a Service
Agreement with the Registrant under which PGI is required to provide certain
personal services to shareholders (plan sponsors) and beneficial owners (plan
members), such as responding to plan sponsor and plan member
inquiries.
◦Administrative
Services Fee (Classes R-1, R-3, R-4, and R-5) — PGI has entered into an
Administrative Services Agreement with the Registrant under which PGI is
required to provide shareholder and administrative services for retirement plans
and other beneficial owners of Fund shares.
•Acquired
Fund Fees and Expenses (all Classes) - Fees and expenses charged by other
investment companies in which a Fund invests a portion of its
assets.
DISTRIBUTION
PLANS AND INTERMEDIARY COMPENSATION
Distribution
and/or Service (12b-1) Fees
Principal
Funds Distributor, Inc. (“PFD” or the “Distributor”) is the distributor for the
shares of Principal Funds, Inc. PFD is an affiliate of Principal Life Insurance
Company, a subsidiary of Principal Financial Group, Inc., and a member of
Principal®.
The
Funds have adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act
(the “12b-1 Plan”) for each of the Classes A, C, J, R-1, R-3, and R-4 shares of
the Funds. Under the 12b-1 Plan, except as noted below, each Fund makes payments
from its assets attributable to the particular share class to the Funds’
Distributor for distribution-related expenses and for providing services to
shareholders of that share class. Payments under the 12b-1 Plan are made by the
Funds to the Distributor pursuant to the 12b-1 Plan regardless of the expenses
incurred by the Distributor. When the Distributor receives Rule 12b-1 fees, it
may pay some or all of them to financial intermediaries whose customers are
shareholders of the Funds for sales support services and for providing services
to shareholders of that share class. Financial intermediaries may include, among
others, broker-dealers, registered investment advisors, banks, trust companies,
pension plan consultants, retirement plan administrators, and insurance
companies. These financial intermediaries include Principal Securities, Inc., a
broker-dealer affiliated with PGI. Because Rule 12b-1 fees are paid out of Fund
assets and are ongoing fees, over time they will increase the cost of your
investment in the Funds and may cost you more than other types of sales
charges.
The
maximum annual Rule 12b-1 fee for distribution-related expenses and/or for
providing services to shareholders under each 12b-1 Plan (as a percentage of
average daily net assets) is:
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Share
Class |
Maximum
Annualized Rate 12b-1 Fee |
A(1) |
0.25%(2) |
C |
1.00% |
J |
0.15% |
R-1 |
0.35% |
R-3 |
0.25% |
R-4 |
0.10% |
(1)
Class A shares of the Money Market Fund are not subject
to Rule 12b-1 fees.
(2)
The
maximum annualized Rule 12b-1 fee for Class A shares of the Government &
High Quality Bond, LargeCap S&P 500 Index, and Short-Term Income Funds is
0.15%.
The
Distributor generally uses Rule 12b-1 fees to finance any activity that is
primarily intended to result in the sale of shares and for providing services to
shareholders of the share class, and the activities vary depending on the share
class. In addition to shareholder services, examples of such sales or
distribution-related expenses include, but are not limited to:
•Compensation
to salespeople and selected dealers, including ongoing commission
payments.
•Printing
of prospectuses and statements of additional information and reports for
other-than-existing shareholders, and preparing and conducting sales
seminars.
Examples
of services to shareholders include furnishing information as to the status of
shareholder accounts, responding to telephone and written inquiries of
shareholders, and assisting shareholders with tax information.
Payments
under the 12b-1 Plans will not automatically terminate for Funds that are closed
to new investors or to additional purchases by existing shareholders. The Board
will determine whether to terminate, modify, or leave unchanged the 12b-1 Plans
when the Board directs the implementation of the closure of a Fund.
Classes
A and C Shares
Generally,
to receive 12b-1 fees from the Distributor, dealers or other intermediaries must
be the dealer of record for shares with average daily net assets of at least
$100,000. Generally, Class A shares must be held for three months before these
fees are paid. In the case of Class C shares, generally these fees are not paid
until such shares have been held for twelve months.
Class
J Shares
Effective
December 31, 2015, the Distributor has contractually agreed to limit the
distribution fees attributable to Class J normally payable by the Money Market
Fund. This waiver is in place through February 28, 2025 and will reduce the
Money Market Fund’s distribution fees by 0.15%. It is expected that the fee
waiver will continue through the period disclosed; however, Principal Funds,
Inc. and the Distributor, the parties to the agreement, may agree to terminate
the fee waiver prior to the end of the period.
Effective
January 1, 2021, the Distributor has voluntarily agreed to limit the
distribution fees attributable to Class J, reducing the Funds’ distribution fees
for Class J shares by 0.020%.* This voluntary waiver may be revised or
terminated at any time without notice to shareholders.
*For
the period from December 31, 2016 to December 31, 2020, the voluntary waiver was
0.030%.
Commissions,
Finder’s Fees, and Ongoing Payments
See
“Choosing a Share Class and The Costs of Investing” for more
details.
Class
A Shares
All
or a portion of the initial sales charge that you pay may be paid by the
Distributor to intermediaries selling Class A shares. The Distributor may pay
these intermediaries a commission of up to 1.00% on purchases of $1,000,000 or
more (or $250,000 or $500,000 or more depending on the Fund purchased), which
are not subject to initial sales charges.
Classes
A, J, R-1, R-3, and R-4 Shares
Additionally,
the Distributor generally makes ongoing 12b-1 fee payments to your intermediary
at a rate that varies by class, as noted above under “Distribution and/or
Service (12b-1) Fees.”
Class
C Shares
The
Distributor will pay, at the time of your purchase, a commission to your
intermediary equal to 1.00% of your investment. Additionally, the Distributor
generally makes ongoing 12b-1 fee payments to your intermediary as noted above
under “Distribution and/or Service (12b-1) Fees.”
Additional
Payments to Intermediaries
Shares
of the Funds are sold primarily through intermediaries, such as brokers,
dealers, investment advisors, banks, trust companies, pension plan consultants,
retirement plan administrators, and insurance companies.
Classes
A, C, and J Shares
In
addition to payments pursuant to 12b-1 plans, sales charges, commissions, and
finder’s fees, including compensation for referrals, PGI or its affiliates enter
into agreements with some intermediaries pursuant to which the intermediaries
receive payments for providing services relating to Fund shares. Examples of
such services are administrative, networking, recordkeeping, sub-transfer
agency, and shareholder services. In some situations, the Fund will reimburse
PGI or its affiliates for making such payments; in others, the Fund may make
such additional payments directly to intermediaries.
PGI
or its affiliates also pay, without reimbursement from the Fund, compensation
from their own resources to certain intermediaries that support the distribution
of shares of the Fund or provide services to Fund shareholders.
Such
additional payments vary, but generally do not exceed: (a) 0.25% of the current
year’s sales of Fund shares by that intermediary and/or (b) 0.25% of average net
asset value of Fund shares held by clients of such intermediary.
Institutional
Class and Classes R-1, R-3, R-4, R-5, and R-6 Shares
In
addition to payments pursuant to applicable 12b-1 plans, PGI or its affiliates
enter into agreements with some intermediaries pursuant to which the
intermediaries receive payments for providing services relating to Fund shares.
Examples of such services are administrative, networking, recordkeeping,
sub-transfer agency, and/or shareholder services. For Classes R-1, R-3, R-4, and
R-5 shares, such compensation is generally paid out of the Service Fees and
Administrative Services Fees that are disclosed in this Prospectus as Other
Expenses. For Institutional Class shares, in some situations the Fund will
reimburse PGI or its affiliates for making such payments; in others, the Fund
may make such payments directly to the intermediaries.
PGI
or its affiliates also pay, without reimbursement from the Fund, compensation
from their own resources to certain intermediaries that support the distribution
of shares of the Fund or provide services to Fund shareholders.
For
Institutional Class shares, such payments vary, but generally do not exceed: (a)
0.10% of the current year’s sales of Fund shares by that intermediary or (b)
0.10% of the average net asset value of Fund shares held by clients of such
intermediary.
Principal
Life Insurance Company is one such intermediary that provides services relating
to Fund shares held in employee benefit plans, and it is typically paid all of
the Service Fees and Administrative Services Fees pertaining to such plans, and
it also is paid other compensation described in this section as payable to
intermediaries.
The
Distributor and its affiliates do not pay compensation to intermediaries (other
than to affiliates of the Distributor) for distribution services or other
services to Fund shareholders for Class R-6 shares. For more information, see
the SAI.
Institutional
Class and Classes A, C, J, R-1, R-3, R-4, R-5, and R-6 Shares
The
intermediary may pay to its Financial Professionals some or all of the amounts
the Distributor and its affiliates pay to the intermediary. The amounts paid to
intermediaries vary by share class and by Fund.
In
some cases, the Distributor and its affiliates will provide payments or
reimbursements in connection with the costs of conferences, educational
seminars, training, and marketing efforts related to the Funds. Such activities
may be sponsored by intermediaries or the Distributor. The costs associated with
such activities may include travel, lodging, entertainment, and meals. In some
cases, the Distributor will also provide payment or reimbursement for expenses
associated with transactions (“ticket”) charges and general marketing
expenses.
For
more information, see the SAI.
The
payments described in this Prospectus may create a conflict of interest by
influencing your Financial Professional or your intermediary to recommend the
Fund over another investment, or to recommend one share class of the Fund over
another share class. Ask your Financial Professional or visit your
intermediary’s website for more information about the total amounts paid to them
by PGI and its affiliates, and by sponsors of other investment companies your
Financial Professional may recommend to you.
Your
intermediary may charge you additional fees other than those disclosed in this
Prospectus. Ask your Financial Professional about any fees and commissions they
charge.
FUND ACCOUNT
INFORMATION
Statements
You
will receive quarterly statements for the Funds you own, or if you purchase
through a third-party intermediary, on a periodic basis established by such
intermediary. Such statements provide the number and value of shares you own,
transactions during the period, dividends declared or paid, and other
information. The year-end statement includes information for all transactions
that took place during the year. Please review your statement as soon as you
receive it. Keep your statements, as you may need them for tax reporting
purposes.
Generally,
each time you buy, sell, or exchange shares in Principal Funds, you will receive
a confirmation shortly thereafter. It summarizes all the key information - what
you bought or sold, the amount of the transaction, and other important
information.
Certain
purchases and sales are only included on your quarterly statement. These include
accounts:
•when
the only activity during the quarter are:
◦purchases
of shares from reinvested dividends and/or capital gains,
◦purchases
under an Automatic Investment Plan,
◦sales
under a Systematic Withdrawal Plan,
◦purchases
or sales under an Automatic Exchange Election, or
◦conversion
of Class C shares into Class A shares
•used
to fund certain individual retirement or individual pension plans;
or
•established
under a payroll deduction plan.
If
you need information about your account(s) at other times, you may call us or
access your account on the internet.
Orders
Placed by Intermediaries
Principal
Funds may have an agreement with your intermediary, such as a broker-dealer,
third-party administrator, or trust company, that permits the intermediary to
receive orders on behalf of the Fund (other than the Government Money Market
Fund) until 3:00 p.m. Central Time and on behalf of the Government Money Market
Fund until 4:00 p.m. Central Time. The agreement may include authorization for
your intermediary to designate other intermediaries (“sub-designees”) to receive
orders on behalf of the Fund on the same terms that apply to the intermediary.
In such cases, if your intermediary or a sub-designee receives your order in
correct form by the required time, transmits it to the Fund, and pays for it in
accordance with the agreement, the Fund will price the order at the next NAV per
share it computes after your intermediary or sub-designee received your
order.
The
time at which the Fund prices orders and the time until which the Fund or your
intermediary or sub-designee will accept orders may change in the case of an
emergency or if the NYSE closes at a time other than 3:00 p.m. Central
Time.
Transactions
through Financial Institutions/Professionals
Financial
institutions and dealers may charge their customers a processing or service fee
in connection with the purchase or redemption of Fund shares. The amount and
applicability of such a fee is determined and disclosed to its customers by each
individual financial institution or dealer. Processing or service fees typically
are fixed, nominal dollar amounts and are in addition to the sales and other
charges described in this Prospectus and the SAI.
Your
financial institution or dealer will provide you with specific information about
any processing or service fees you will be charged.
Telephone
and Internet Instructions
The
Funds reserve the right to refuse telephone and/or internet instructions. You
are liable for a loss resulting from a fraudulent telephone or internet
instruction that we reasonably believe is genuine. We use reasonable procedures
to assure instructions are genuine. If the procedures are not followed, we may
be liable for loss due to unauthorized or fraudulent transactions. The
procedures include: recording all telephone instructions, requiring the use of a
password (Personal Identification Number) for internet instructions, requesting
personal identification information, and sending written confirmation to the
shareholder’s address of record.
If
you elect telephone privileges, instructions regarding your account(s) may be
given to us via the telephone or internet. Your instructions:
•may
be given by calling us;
•may
be given via our website for certain transactions (for security purposes you
need a username and password to use any of the internet services, including
viewing your account information online. If you do not have a username or
password, you may obtain one at our website); or
•may
be given to your Financial Professional (a person employed by or affiliated with
broker/dealer firms) who will in turn contact us with your
instructions.
Instructions
received from one owner are binding on all owners. In the case of an account
owned by a corporation or trust, instructions received from an authorized person
are binding on the corporation/trust unless we have a written notification
requiring that more than one authorized person execute written
instructions.
Signature
Guarantees
Certain
transactions require that your signature be guaranteed. A signature guarantee
may help protect your account against fraud. If required, the signature(s) must
be guaranteed by a commercial bank, trust company, credit union, savings and
loan, national securities exchange member, or brokerage firm that participates
in a Medallion program recognized by the Securities Transfer Association. A
signature guaranteed by a notary public or savings bank is not acceptable. We
reserve the right to require a signature guarantee on any
transaction.
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Signature
guarantees are required in any of the following circumstances: |
A |
C |
J |
Inst. |
R-1 |
R-3 |
R-4 |
R-5 |
R-6 |
if
you sell more than $100,000 (in the aggregate) from the Funds |
X |
X |
X |
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if
you sell more than $500,000 (in the aggregate) from the Funds |
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| X |
X |
X |
X |
X |
X |
if
you sell more than $10,000,000 if you have the proceeds sent
electronically to a previously authorized U.S. bank account |
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| X |
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if
a sales proceeds check is payable to a party other than the account
shareholder(s) |
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| X |
X |
X |
X |
X |
X |
if
a sales proceeds check is payable to a party other than the account
shareholder(s) or Principal Life, Principal Bank, a retirement plan
trustee or custodian that has agreed in writing to accept a transfer of
assets from the Fund or Principal Securities, Inc. payable through
Pershing |
X |
X |
X |
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to
change ownership of an account |
X |
X |
X |
X |
X |
X |
X |
X |
X |
to
add telephone transaction services and/or wire or ACH redemption
privileges to an existing account if there is not a common owner between
the bank account and mutual fund account |
X |
X |
X |
X |
X |
X |
X |
X |
X |
to
change bank account information designated under an existing telephone
withdrawal plan if there is not a common owner between the bank account
and mutual fund account |
X |
X |
X |
X |
X |
X |
X |
X |
X |
to
wire or ACH to a shareholder’s U.S. bank account not previously authorized
or when the request does not include a voided check or deposit slip
indicating a common owner between the bank account and mutual fund
account |
X |
X |
X |
X |
X |
X |
X |
X |
X |
to
exchange or transfer among accounts with different ownership |
X |
X |
X |
X |
X |
X |
X |
X |
X |
to
have a sales proceeds check mailed to an address other than the address on
the account or to the address on the account if it has been changed within
the preceding 15 days |
X |
X |
X |
X |
X |
X |
X |
X |
X |
Reservation
of Rights
Principal
Funds reserves the right to amend or terminate the special plans described in
this Prospectus. Shareholders will be notified of any such action to the extent
required by law.
Such
plans include, for example, automatic investment, systematic withdrawal, waiver
of Fund minimums for certain accounts, and waiver or reduction of the sales
charge or contingent deferred sales charge for certain purchasers.
Classes
A, C, and J Shares - Minimum Account Balance
Each
Fund has a minimum required account balance of $1,000. The Fund reserves the
right to redeem all shares in your account if the value of your account falls
below $1,000. The Fund will mail the redemption proceeds to you. An involuntary
redemption of a small account will not be triggered by market conditions alone.
The Fund will notify you before involuntarily redeeming your account. You will
have 30 days to make an additional investment of an amount that brings your
account up to the required minimum. Each Fund reserves the right to increase the
required minimum.
Householding
To
avoid sending duplicate copies of materials to households, mailings for accounts
held by members of your household may be combined so that only one copy of each
Prospectus and Annual and Semi-Annual Reports will be mailed. In addition, your
account information may be included with other householded accounts on the same
quarterly and annual statements. The consolidation of these mailings, called
householding, benefits Principal Funds and its shareholders by reduced printing
and mailing expenses. If you prefer to receive multiple copies of these
materials, you may write or call Principal Funds. Householding will be stopped
within 30 days after we receive your request.
Multiple
Translations
This
Prospectus may be translated into other languages. In the event of any
inconsistencies or ambiguity as to the meaning of any word or phrase in a
translation, the English text will prevail.
Financial
Statements
Shareholders
will receive annual financial statements for the Funds, audited by the Funds'
independent registered public accounting firm. Shareholders will also receive
semi-annual financial statements that are unaudited.
APPENDIX
A – DESCRIPTION OF BOND RATINGS
Moody’s
Investors Service, Inc. Rating Definitions:
Long-Term
Obligation Ratings
Ratings
assigned on Moody’s global long-term obligation rating scales are
forward-looking opinions of the relative credit risk of financial obligations
issued by non-financial corporates, financial institutions, structured finance
vehicles, project finance vehicles, and public sector entities. Long-term
ratings are assigned to issuers or obligations with an original maturity of one
year or more and reflect both on the likelihood of a default or impairment on
contractual financial obligations and the expected financial loss suffered in
the event of default or impairment.1
1
For
certain structured finance, preferred stock and hybrid securities in which
payment default events are either not defined or do not match investor’s
expectations for timely payment, the ratings reflect the likelihood of
impairment and the expected financial loss in the event of
impairment.
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Aaa: |
Obligations
rated Aaa are judged to be of the highest quality, subject to the lowest
level of credit risk. |
Aa: |
Obligations
rated Aa are judged to be of high quality and are subject to very low
credit risk. |
A: |
Obligations
rated A are considered upper-medium grade and are subject to low credit
risk. |
Baa: |
Obligations
rated Baa are subject to moderate credit risk. They are considered
medium-grade and as such may possess certain speculative
characteristics. |
Ba: |
Obligations
rated Ba are judged to be speculative and are subject to substantial
credit risk. |
B: |
Obligations
rated B are considered speculative and are subject to high credit
risk. |
Caa: |
Obligations
rated Caa are judged to be speculative of poor standing and are subject to
very high credit risk. |
Ca: |
Obligations
rated Ca are highly speculative and are likely in, or very near, default,
with some prospect of recovery of principal and
interest. |
C: |
Obligations
rated C are the lowest rated class of bonds and are typically in default,
with little prospect for recovery of principal or
interest. |
|
|
|
|
| |
NOTE: |
Moody’s
appends numerical modifiers, 1, 2, and 3 to each generic rating
classification from Aa through Caa. The modifier 1 indicates that the
obligation ranks in the higher end of its generic rating category, the
modifier 2 indicates a mid-range ranking, and the modifier 3 indicates a
ranking in the lower end of that generic rating category. Additionally, a
“(hyb)” indicator is appended to all ratings of hybrid securities issued
by banks, issuers, financial companies, and securities
firms.* |
*By
their terms, hybrid securities allow for the omission of scheduled dividends,
interest, or principal payments, which can potentially result in impairment if
such an omission occurs. Hybrid securities may also be subject to contractually
allowable write-downs of principal that could result in impairment. Together the
hybrid indicator, the long-term obligation rating assigned to a hybrid security
is an expression of the relative credit risk associated with that
security.
SHORT-TERM
NOTES: Short-term ratings are assigned to obligations with an original maturity
of thirteen months or less and reflect both on the likelihood of a default or
impairment on contractual financial obligations and the expected financial loss
suffered in the event of default. Moody’s employs the following three
designations, all judged to be investment grade, to indicate the relative
repayment ability of rated issuers:
Issuers
rated Prime-1 (or related supporting institutions) have a superior ability to
repay short-term debt obligations.
Issuers
rated Prime-2 (or related supporting institutions) have a strong ability to
repay short-term debt obligations.
Issuers
rated Prime-3 (or related supporting institutions) have an acceptable ability to
repay short-term obligations.
Issuers
rated Not Prime do not fall within any of the Prime rating
categories.
US
MUNICIPAL SHORT-TERM DEBT: The Municipal Investment Grade (MIG) scale is used to
rate US municipal bonds of up to three years maturity. MIG ratings are divided
into three levels - MIG 1 through MIG 3 - while speculative grade short-term
obligations are designated SG.
MIG
1 denotes superior credit quality, afforded excellent protection from
established cash flows, highly reliable liquidity support, or demonstrated
broad-based access to the market for refinancing.
MIG
2 denotes strong credit quality with ample margins of protection, although not
as large as in the preceding group.
MIG
3 notes are of acceptable credit quality. Liquidity and cash-flow protection may
be narrow and market access for refinancing is likely to be less
well-established.
SG
denotes speculative-grade credit quality and may lack sufficient margins of
protection.
Description
of S&P Global Ratings’ Credit Rating Definitions:
S&P
Global’s credit rating, both long-term and short-term, is a forward-looking
opinion of the creditworthiness of an obligor with respect to a specific
obligation. This assessment takes into consideration the creditworthiness of
guarantors, insurers, or other forms of credit enhancement on the
obligation.
The
credit rating is not a recommendation to purchase, sell or hold a security,
inasmuch as it does not comment as to market price or suitability for a
particular investor.
The
ratings are statements of opinion as of the date they are expressed furnished by
the issuer or obtained by S&P Global Ratings from other sources S&P
Global Ratings considers reliable. S&P Global Ratings does not perform an
audit in connection with any rating and may, on occasion, rely on unaudited
financial information. The ratings may be changed, suspended, or withdrawn as a
result of changes in, or unavailability of, such information, or for other
circumstances.
The
ratings are based, in varying degrees, on the following
considerations:
•Likelihood
of payment - capacity and willingness of the obligor to meet its financial
commitment on an obligation in accordance with the terms of the
obligation;
•Nature
of and provisions of the financial obligation;
•Protection
afforded by, and relative position of, the financial obligation in the event of
bankruptcy, reorganization, or other arrangement under the laws of bankruptcy
and other laws affecting creditor’s rights.
LONG-TERM
CREDIT RATINGS:
|
|
|
|
| |
AAA: |
Obligations
rated ‘AAA’ have the highest rating assigned by S&P Global Ratings.
The obligor’s capacity to meet its financial commitment on the obligation
is extremely strong. |
AA: |
Obligations
rated ‘AA’ differ from the highest-rated issues only in small degree. The
obligor’s capacity to meet its financial commitment on the obligation is
very strong. |
A:
|
Obligations
rated ‘A’ have a strong capacity to meet financial commitment on the
obligation although they are somewhat more susceptible to the adverse
effects of changes in circumstances and economic conditions than
obligations in higher-rated categories. |
BBB: |
Obligations
rated ‘BBB’ exhibit adequate protection parameters; however, adverse
economic conditions or changing circumstances are more likely to lead to a
weakened capacity to meet financial commitment on the
obligation. |
BB,
B, CCC, CC and C: |
Obligations
rated ‘BB’, ‘B’, ‘CCC’, ‘CC’, and ‘C’ are regarded, on balance, as having
significant speculative characteristics. ‘BB’ indicates the lowest degree
of speculation and ‘C’ the highest degree of speculation. While such
obligations will likely have some quality and protective characteristics,
these may be outweighed by large uncertainties or major risk exposures to
adverse conditions. |
BB: |
Obligations
rated ‘BB’ are less vulnerable to nonpayment than other speculative
issues. However it faces major ongoing uncertainties or exposure to
adverse business, financial, or economic conditions which could lead to
the obligor’s inadequate capacity to meet its financial commitment on the
obligation. |
B: |
Obligations
rated ‘B’ are more vulnerable to nonpayment than ‘BB’ but the obligor
currently has the capacity to meet its financial commitment on the
obligation. Adverse business, financial, or economic conditions will
likely impair this capacity. |
CCC: |
Obligations
rated ‘CCC’ are currently vulnerable to nonpayment and is dependent upon
favorable business, financial, and economic conditions for the obligor to
meet its financial commitment on the obligation. If adverse business,
financial, or economic conditions occur, the obligor is not likely to have
the capacity to meet its financial commitment on the
obligation. |
CC: |
Obligations
rated ‘CC’ are currently highly vulnerable to nonpayment. The ‘CC’ rating
is used when a default has not yet occurred but S&P Global Ratings
expects default to be a virtual certainty, regardless of anticipated time
to default. |
C:
|
The
rating ‘C’ is highly vulnerable to nonpayment, the obligation is expected
to have lower relative seniority or lower ultimate recovery compared to
higher rated obligations. |
D:
|
Obligations
rated ‘D’ are in default, or in breach of an imputed promise. For
non-hybrid capital instruments, the ‘D’ rating category is used when
payments on an obligation are not made on the date due, unless S&P
Global Ratings believes that such payments will be made within five
business days in the absence of a stated grace period or within the
earlier of the stated grace period or 30 calendar days. The rating will
also be used upon filing for bankruptcy petition or the taking of similar
action and where default is a virtual certainty. If an obligation is
subject to a distressed exchange offer the rating is lowered to
‘D’. |
Plus
(+) or Minus (-): The ratings from ‘AA’ to ‘CCC’ may be modified by the addition
of a plus or minus sign to show relative standing within the major rating
categories.
|
|
|
|
| |
NR: |
Indicates
that no rating has been requested, that there is insufficient information
on which to base a rating or that S&P Global Ratings does not rate a
particular type of obligation as a matter of
policy. |
SHORT-TERM
CREDIT RATINGS: Ratings are graded into four categories, ranging from ‘A-1’ for
the highest quality obligations to ‘D’ for the lowest.
|
|
|
|
| |
A-1:
|
This
is the highest category. The obligor’s capacity to meet its financial
commitment on the obligation is strong. Within this category, certain
obligations are designated with a plus sign (+). This indicates that the
obligor’s capacity to meet its financial commitment on these obligations
is extremely strong. |
A-2:
|
Issues
carrying this designation are somewhat more susceptible to the adverse
effects of the changes in circumstances and economic conditions than
obligations in higher rating categories. However, the obligor’s capacity
to meet its financial commitment on the obligation is
satisfactory. |
A-3:
|
Issues
carrying this designation exhibit adequate capacity to meet their
financial obligations. However, adverse economic conditions or changing
circumstances are more likely to lead to a weakened capacity of the
obligor to meet it financial commitment on the obligation. |
B:
|
Issues
rated ‘B’ are regarded as vulnerable and have significant speculative
characteristics. The obligor has capacity to meet financial commitments;
however, it faces major ongoing uncertainties which could lead to
obligor’s inadequate capacity to meet its financial
obligations. |
C:
|
This
rating is assigned to short-term debt obligations that are currently
vulnerable to nonpayment and is dependent upon favorable business,
financial, and economic conditions to meet its financial commitment on the
obligation. |
D:
|
This
rating indicates that the issue is either in default or in breach of an
imputed promise. For non-hybrid capital instruments, the ‘D’ rating
category is used when payments on an obligation are not made on the date
due, unless S&P Global Ratings believes that such payments will be
made within any stated grace period. However, any stated grace period
longer than five business days will be treated as five business days. The
rating will also be used upon filing for bankruptcy petition or the taking
of similar action and where default is a virtual certainty. If an
obligation is subject to a distressed debt restructuring the rating is
lowered to ‘D’. |
MUNICIPAL
SHORT-TERM NOTE RATINGS: S&P Global Ratings rates U.S. municipal notes with
a maturity of less than three years as follows:
|
|
|
|
| |
SP-1:
|
A
strong capacity to pay principal and interest. Issues that possess a very
strong capacity to pay debt service is given a “+”
designation. |
SP-2:
|
A
satisfactory capacity to pay principal and interest, with some
vulnerability to adverse financial and economic changes over the terms of
the notes. |
SP-3:
|
A
speculative capacity to pay principal and interest. |
D: |
Assigned
upon failure to pay the note when due, completion of a distressed debt
restructuring, or the filing of a bankruptcy petition or the taking of
similar action and where default on an obligation is a virtual certainty.
|
APPENDIX
B – INTERMEDIARY-SPECIFIC SALES CHARGE WAIVERS AND REDUCTIONS
Certain
intermediaries have different policies and procedures regarding the availability
of sales charge waivers and reductions, which are discussed below. In all
instances, it is the purchaser’s responsibility to notify the Fund or the
purchaser’s financial intermediary at the time of purchase of any relationship
or other facts qualifying the purchaser for sales charge waivers or reductions.
In order to receive a waiver or reduction offered by one intermediary or the
Fund, the purchaser must purchase Fund shares from the Fund or intermediary
offering the waiver or reduction. Please see the section of the prospectus
entitled “CHOOSING A SHARE CLASS AND THE COSTS OF INVESTING” for more
information on sales charges and waivers available for different
classes.
Currently,
the following intermediaries have implemented a schedule of sales charge waivers
and reductions described below:
Ameriprise
Financial
Class
A Shares Front-End/Initial Sales Charge Waivers on Class A Shares Available at
Ameriprise Financial
The
following information applies to Class A purchases if you have an account with
or otherwise purchase fund shares through Ameriprise Financial.
Shareholders
purchasing Fund shares through an Ameriprise Financial brokerage account are
eligible for the following front-end sales change waivers (also referred to as
initial sales charge waivers), which may differ from those disclosed elsewhere
in this Fund’s prospectus or SAI:
•Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs or SAR-SEPs.
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same Fund (but not any other fund
within the same fund family).
•Shares
exchanged from Class C shares of the same fund in the month of or following the
7-year anniversary of the purchase date. To the extent that this prospectus
elsewhere provides for a waiver with respect to exchanges of Class C shares or
conversion of Class C shares following a shorter holding period, that waiver
will apply.
•Employees
and registered representatives of Ameriprise Financial or its affiliates and
their immediate family members.
•Shares
purchased by or through qualified accounts (including IRAs, Coverdell Education
Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit
plans) that are held by a covered family member, defined as an Ameriprise
financial advisor and/or the advisor’s spouse, advisor’s lineal ascendant
(mother, father, grandmother, grandfather, great grandmother, great
grandfather), advisor’s lineal descendant (son, step-son, daughter,
step-daughter, grandson, granddaughter, great grandson, great granddaughter,
including through adoption) or any spouse of a covered family member who is a
lineal descendant.
•Shares
purchased from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within 90 days following the redemption, (2) the
redemption and purchase occur in the same account, and (3) redeemed shares were
subject to a front-end or deferred sales load (i.e., Rights of
Reinstatement).
Edward
D. Jones & Co., L.P. ("Edward Jones")
Policies
Regarding Transactions Through Edward Jones
Effective
on or after January 1, 2024, the following information supersedes prior
information with respect to transactions and positions held in fund shares
through an Edward Jones system. Clients of Edward Jones (also referred to as
"shareholders") purchasing fund shares on the Edward Jones commission and
fee-based platforms are eligible only for the following sales charge discounts
(also referred to as "breakpoints") and waivers, which can differ from discounts
and waivers described elsewhere in the mutual fund prospectus or statement of
additional information ("SAI") or through another broker-dealer. In all
instances, it is the shareholder's responsibility to inform Edward Jones at the
time of purchase of any relationship, holdings of Principal Funds, Inc., or
other facts qualifying the purchaser for discounts or waivers. Edward Jones can
ask for documentation of such circumstance. Shareholders should contact Edward
Jones if they have questions regarding their eligibility for these discounts and
waivers.
Breakpoints
at Edward Jones
•Breakpoint
pricing, otherwise known as volume pricing, at dollar thresholds as described in
the prospectus.
Rights
of Accumulation ("ROA") at Edward Jones
•The
applicable sales charge on a purchase of Class A shares is determined by taking
into account all share classes (except certain money market funds and any assets
held in group retirement plans) of Principal Funds, Inc. held by the shareholder
or in an account grouped by Edward Jones with other accounts for the purpose of
providing certain pricing considerations ("pricing groups"). If grouping assets
as a shareholder, this includes all share classes held on the Edward Jones
platform and/or held on another platform. The inclusion of eligible fund family
assets in the ROA calculation is dependent on the shareholder notifying Edward
Jones of such assets at the time of calculation. Money market funds are included
only if such shares were sold with a sales charge at the time of purchase or
acquired in exchange for shares purchased with a sales charge.
•The
employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to
establish or change ROA for the IRA accounts associated with the plan to a
plan-level grouping as opposed to including all share classes at a shareholder
or pricing group level.
•ROA
is determined by calculating the higher of cost minus redemptions or market
value (current shares x NAV).
Letter
of Intent ("LOI") at Edward Jones
•Through
a LOI, shareholders can receive the sales charge and breakpoint discounts for
purchases shareholders intend to make over a 13-month period from the date
Edward Jones receives the LOI. The LOI is determined by calculating the higher
of cost or market value of qualifying holdings at LOI initiation in combination
with the value that the shareholder intends to buy over a 13-month period to
calculate the front-end sales charge and any breakpoint discounts. Each purchase
the shareholder makes during that 13-month period will receive the sales charge
and breakpoint discount that applies to the total amount. The inclusion of
eligible fund family assets in the LOI calculation is dependent on the
shareholder notifying Edward Jones of such assets at the time of calculation.
Purchases made before the LOI is received by Edward Jones are not adjusted under
the LOI and will not reduce the sales charge previously paid. Sales charges will
be adjusted if LOI is not met.
•If
the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to
establish or change ROA for the IRA accounts associated with the plan to a
plan-level grouping, LOIs will also be at the plan-level and may only be
established by the employer.
Sales
Charge Waivers at Edward Jones
Sales
charges are waived for the following shareholders and in the following
situations:
•Associates
of Edward Jones and its affiliates and other accounts in the same pricing group
(as determined by Edward Jones under its policies and procedures) as the
associate. This waiver will continue for the remainder of the associate's life
if the associate retires from Edward Jones in good-standing and remains in good
standing pursuant to Edward Jones' policies and procedures.
•Shares
purchased in an Edward Jones fee-based program.
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment.
•Shares
purchased from the proceeds of redeemed shares of the same fund family so long
as the following conditions are met: the proceeds are from the sale of shares
within 60 days of the purchase, and the sale and purchase are made in a share
class that charges a front load and one of the following:
◦The
redemption and repurchase occur in the same account.
◦The
redemption proceeds are used to process an: IRA contribution, excess
contributions, conversion, recharacterizing of contributions, or distribution,
and the repurchase is done in an account within the same Edward Jones grouping
for ROA.
•Shares
exchanged into Class A shares from another share class so long as the exchange
is into the same fund and was initiated at the discretion of Edward Jones.
Edward Jones is responsible for any remaining CDSC due to the fund company, if
applicable. Any future purchases are subject to the applicable sales charge as
disclosed in the prospectus.
•Exchanges
from Class C shares to Class A shares of the same fund, generally, in the
84th
month following the anniversary of the purchase date or earlier at the
discretion of Edward Jones.
Contingent
Deferred Sales Charge ("CDSC") Waivers at Edward Jones
•If
the shareholder purchases shares that are subject to a CDSC and those shares are
redeemed before the CDSC is expired, the shareholder is responsible to pay the
CDSC except in the following conditions:
•The
death or disability of the shareholder.
•Systematic
withdrawals with up to 10% per year of the account value.
•Return
of excess contributions from an Individual Retirement Account
(IRA).
•Shares
redeemed as part of a required minimum distribution for IRA and retirement
accounts if the redemption is taken in or after the year the shareholder reaches
qualified age based on applicable IRS regulations.
•Shares
redeemed to pay Edward Jones fees or costs in such cases where the transaction
is initiated by Edward Jones.
•Shares
exchanged in an Edward Jones fee-based program.
•Shares
acquired through NAV reinstatement.
•Shares
redeemed at the discretion of Edward Jones for Minimums Balances, as described
below.
Other
Important Information Regarding Transactions Through Edward Jones
Minimum
Purchase Amounts
•Initial
purchase minimum: $250
•Subsequent
purchase minimum: none
Minimum
Balances
•Edward
Jones has the right to redeem at its discretion fund holdings with a balance of
$250 or less. The following are examples of accounts that are not included in
this policy:
◦A
fee-based account held on an Edward Jones platform
◦A
529 account held on an Edward Jones platform
◦An
account with an active systematic investment plan or LOI
Exchanging
Share Classes
•At
any time it deems necessary, Edward Jones has the authority to exchange at NAV a
shareholder's holdings in a fund to Class A shares of the same
fund.
Janney
Montgomery Scott
Effective
May 1, 2020, if you purchase fund shares through a Janney Montgomery Scott LLC
(“Janney”) brokerage account, you will be eligible for the following load
waivers (front-end sales charge waivers and contingent deferred sales charge
("CDSC"), or back-end sales charge, waivers) and discounts, which may differ
from those disclosed elsewhere in this fund’s Prospectus or SAI.
Front-end
Sales Charge* Waivers on Class A Shares Available at Janney
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing
shares of the same fund (but not any other fund within the fund
family).
•Shares
purchased by employees and registered representatives of Janney or its
affiliates and their family members as designated by Janney.
•Shares
purchased from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within ninety (90) days following the redemption, (2)
the redemption and purchase occur in the same account, and (3) redeemed shares
were subject to a front-end or deferred sales load (i.e., right of
reinstatement).
•Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs, SAR‑SEPs or Keogh plans.
•Shares
acquired through a right of reinstatement.
•Class
C shares that are no longer subject to a contingent deferred sales charge and
are converted to Class A shares of the same fund pursuant to Janney’s policies
and procedures.
CDSC
Waivers on Class A and C Shares Available at Janney
•Shares
sold
upon
the death or disability of the shareholder.
•Shares
sold as part of a systematic withdrawal plan as described in the fund’s
Prospectus.
•Shares
sold in connection with a return of excess contributions from an IRA
account.
•Shares
sold as part of a required minimum distribution for IRA and retirement accounts
if the redemption is taken in or after the year the shareholder reaches their
qualified age based on applicable IRS regulations.
•Shares
sold to pay Janney fees but only if the transaction is initiated by
Janney.
•Shares
acquired through a right of reinstatement.
•Shares
exchanged into the same share class of a different fund.
Front-end
Sales Charge* Discounts Available at Janney: Breakpoints, Rights of
Accumulation, and/or Letters of Intent
•Breakpoints
as described in the fund’s Prospectus.
•Rights
of accumulation (“ROA”), which entitle shareholders to breakpoint discounts,
will be automatically calculated based on the aggregated holding of fund family
assets held by accounts within the purchaser’s household at Janney. Eligible
fund family assets not held at Janney may be included in the ROA calculation
only if the shareholder notifies his or her financial advisor about such
assets.
•Letters
of intent ("LOI") which allow for breakpoint discounts based on anticipated
purchases within a fund family, over a 13-month time period. Eligible fund
family assets not held at Janney Montgomery Scott may be included in the
calculation of letters of intent only if the shareholder notifies his or her
financial advisor about such assets.
*Also
referred to as an "initial sales charge."
J.P.
Morgan Securities LLC
Effective
September 29, 2023, if you purchase or hold fund shares through an applicable
J.P. Morgan Securities LLC brokerage account, you will be eligible for the
following sales charge waivers (front-end sales charge waivers and contingent
deferred sales charge (“CDSC”), or back-end sales charge, waivers), share class
conversion policy and discounts, which may differ from those disclosed elsewhere
in this fund’s prospectus or SAI.
Front-end
Sales Charge Waivers on Class A Shares Available at J.P. Morgan Securities LLC
•Shares
exchanged from Class C (i.e. level-load) shares that are no longer subject to a
CDSC and are exchanged into Class A shares of the same fund pursuant to J.P.
Morgan Securities LLC’s share class exchange policy.
•Qualified
employer-sponsored defined contribution and defined benefit retirement plans,
nonqualified deferred compensation plans, other employee benefit plans and
trusts used to fund those plans. For purposes of this provision, such plans do
not include SEP IRAs, SIMPLE IRAs, SAR-SEPs or 501(c)(3) accounts.
•Shares
of funds purchased through J.P. Morgan Securities LLC Self-Directed Investing
accounts.
•Shares
purchased through rights of reinstatement.
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other fund
within the fund family).
•Shares
purchased by employees and registered representatives of J.P. Morgan Securities
LLC or its affiliates and their spouse or financial dependent as defined by J.P.
Morgan Securities LLC.
Class
C to Class A Share Conversion
•A
shareholder in the fund’s Class C shares will have their shares converted by
J.P. Morgan Securities LLC to Class A shares (or the appropriate share class) of
the same fund if the shares are no longer subject to a CDSC and the conversion
is consistent with J.P. Morgan Securities LLC’s policies and
procedures.
CDSC
Waivers on Class A and C Shares Available at J.P. Morgan Securities LLC
•Shares
sold upon the death or disability of the shareholder.
•Shares
sold as part of a systematic withdrawal plan as described in the fund’s
prospectus.
•Shares
purchased in connection with a return of excess contributions from an IRA
account.
•Shares
sold as part of a required minimum distribution for IRA and retirement accounts
pursuant to the Internal Revenue Code.
•Shares
acquired through a right of reinstatement.
Front-end
Load Discounts Available at J.P. Morgan Securities LLC: Breakpoints, Rights of
Accumulation & Letters of Intent
•Breakpoints
as described in the prospectus.
•Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as
described in the fund’s prospectus will be automatically calculated based on the
aggregated holding of fund family assets held by accounts within the purchaser’s
household at J.P. Morgan Securities LLC. Eligible fund family assets not held at
J.P. Morgan Securities LLC (including 529 program holdings, where applicable)
may be included in the ROA calculation only if the shareholder notifies his or
her financial advisor about such assets.
•Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated
purchases within a fund family, through J.P. Morgan Securities LLC, over a
13-month period of time (if applicable).
Merrill
Lynch
Shareholders
purchasing Fund shares through a Merrill Lynch platform or account will be
eligible only for the following load waivers (front-end sales charge waivers and
contingent deferred, or back-end, sales charge waivers) and discounts, which may
differ from those disclosed elsewhere in this Fund’s prospectus or
SAI.
Front-end
Sales Load Waivers on Class A Shares Available at Merrill Lynch
•Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health
savings accounts) and trusts used to fund those plans, provided that the shares
are not held in a commission-based brokerage account and shares are held for the
benefit of the plan.
•Shares
purchased by a 529 Plan (does not include 529 Plan units or 529-specific share
classes or equivalents).
•Shares
purchased through a Merrill Lynch affiliated investment advisory
program.
•Shares
exchanged due to the holdings moving from a Merrill Lynch affiliated investment
advisory program to a Merrill Lynch brokerage (non-advisory) account pursuant to
Merrill Lynch’s policies relating to sales load discounts and
waivers.
•Shares
purchased by third party investment advisors on behalf of their advisory clients
through Merrill Lynch’s platform.
•Shares
of funds purchased through the Merrill Edge Self-Directed platform.
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other fund
within the fund family).
•Shares
exchanged from Class C (i.e. level-load) shares of the same fund pursuant to
Merrill Lynch’s policies relating to sales load discounts and
waivers.
•Employees
and registered representatives of Merrill Lynch
or
its affiliates and their family members.
•Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any
of its affiliates, as described in this prospectus.
•Eligible
shares purchased from the proceeds of redemptions within the same fund family,
provided (1) the repurchase occurs within 90 days following the redemption, (2)
the redemption and purchase occur in the same account, and (3) redeemed shares
were subject to a front-end or deferred sales load (known as Rights of
Reinstatement). Automated transactions (i.e. systematic purchases and
withdrawals) and purchases made after shares are automatically sold to pay
Merrill Lynch’s account maintenance fees are not eligible for
reinstatement.
CDSC
Waivers on Class A, B and C Shares Available at Merrill Lynch
•Death
or disability of the shareholder.
•Shares
sold as part of a systematic withdrawal plan as described in the Fund’s
prospectus.
•Return
of excess contributions from an IRA Account.
•Shares
sold as part of a required minimum distribution for IRA and retirement accounts
pursuant to the Internal Revenue Code.
•Shares
sold to pay Merrill Lynch fees but only if the transaction is initiated by
Merrill Lynch.
•Shares
acquired through a right of reinstatement.
•Shares
held in retirement brokerage accounts, that are exchanged for a lower cost share
class due to transfer to certain fee based accounts or platforms (applicable to
A and C shares only).
•Shares
received through an exchange due to the holdings moving from a Merrill Lynch
affiliated investment advisory program to a Merrill Lynch brokerage
(non-advisory) account pursuant to Merrill Lynch’s policies relating to sales
load discounts and waivers.
Front-end
load Discounts Available at Merrill Lynch: Breakpoints, Rights of Accumulation
& Letters of Intent
•Breakpoints
as described in this prospectus.
•Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts as
described in the Fund’s prospectus will be automatically calculated based on the
aggregated holding of fund family assets held by accounts (including 529 program
holdings, where applicable) within the purchaser’s household at Merrill Lynch.
Eligible fund family assets not held at Merrill Lynch may be included in the ROA
calculation only if the shareholder notifies his or her financial advisor about
such assets.
•Letters
of Intent (LOI) which allow for breakpoint discounts based on anticipated
purchases within a fund family, through Merrill Lynch, over a 13-month period of
time.
Morgan
Stanley Wealth Management
Initial
Sales Charge Waivers on Class A Shares Available at Morgan Stanley Wealth
Management
Effective
July 1, 2018, if you purchase Class A Fund shares through a Morgan Stanley
Wealth Management transactional brokerage account you will be eligible only for
the following initial sales charge waivers, which differ from those disclosed
elsewhere in this prospectus or the SAI.
•Employer-sponsored
retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b)
plans, profit sharing and money purchase pension plans and defined benefit
plans). For purposes of this provision, employer-sponsored retirement plans do
not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.
•Morgan
Stanley employee and employee-related accounts according to Morgan Stanley’s
account linking rules.
•Shares
purchased through reinvestment of dividends and capital gains distributions when
purchasing shares of the same fund.
•Shares
purchased through a Morgan Stanley self-directed brokerage account.
•Class
C (i.e., level-load) shares that are no longer subject to a contingent deferred
sales charge and are converted to Class A shares of the same fund pursuant to
Morgan Stanley Wealth Management’s share class conversion program.
•Shares
purchased from the proceeds of redemptions within the same fund family, provided
(i) the repurchase occurs within 90 days following the redemption, (ii) the
redemption and purchase occur in the same account, and (iii) redeemed shares
were subject to a front-end or deferred sales charge.
Oppenheimer
& Co. Inc.
Effective
June 12, 2020, shareholders purchasing Fund shares through an Oppenheimer &
Co. Inc. (“OPCO”) platform or account are eligible only for the following load
waivers (front-end sales charge waivers and contingent deferred, or back-end,
sales charge waivers) and discounts, which may differ from those disclosed
elsewhere in this Fund’s prospectus or SAI.
Front-end
Sales Load Waivers on Class A Shares Available at OPCO
•Employer-sponsored
retirement, deferred compensation and employee benefit plans (including health
savings accounts) and trusts used to fund those plans, provided that the shares
are not held in a commission-based brokerage account and shares are held for the
benefit of the plan.
•Shares
purchased by or through a 529 Plan.
•Shares
purchased through a OPCO affiliated investment advisory program.
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing shares of the same fund (but not any other fund
within the fund family).
•Shares
purchased from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within 90 days following the redemption, (2) the
redemption and purchase occur in the same account, and (3) redeemed shares were
subject to a front-end or deferred sales load (known as Rights of Restatement).
•A
shareholder in the Fund’s Class C shares will have their shares converted at net
asset value to Class A shares (or the appropriate share class) of the Fund if
the shares are no longer subject to a CDSC and the conversion is in line with
the policies and procedures of OPCO.
•Employees
and registered representatives of OPCO or its affiliates and their family
members.
•Directors
or Trustees of the Fund, and employees of the Fund’s investment adviser or any
of its affiliates, as described in this prospectus.
CDSC
Waivers on A, B and C Shares Available at OPCO
•Death
or disability of the shareholder.
•Shares
sold as part of a systematic withdrawal plan as described in the Fund’s
prospectus.
•Return
of excess contributions from an IRA Account.
•Shares
sold as part of a required minimum distribution for IRA and retirement accounts
due to the shareholder reaching the qualified age based on applicable IRS
regulations as described in the prospectus.
•Shares
sold to pay OPCO fees but only if the transaction is initiated by
OPCO.
•Shares
acquired through a right of reinstatement.
Front-end
Load Discounts Available at OPCO: Breakpoints, Rights of Accumulation &
Letters of Intent
•Breakpoints
as described in this prospectus.
•Rights
of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family assets
held by accounts within the purchaser’s household at OPCO. Eligible fund family
assets not held at OPCO may be included in the ROA calculation only if the
shareholder notifies his or her financial advisor about such
assets.
Raymond
James
Effective
March 1, 2019, shareholders purchasing fund shares through a Raymond James &
Associates, Inc., Raymond James Financial Services, Inc. or each entity’s
affiliates (“Raymond James”) platform or account, or through an introducing
broker-dealer or independent registered investment adviser for which Raymond
James provides trade execution, clearance, and/or custody services, will be
eligible only for the following load waivers (front-end sales charge waivers and
contingent deferred, or back-end, sales charge waivers) and discounts, which may
differ from those disclosed elsewhere in this fund’s prospectus or
SAI.
Front-end
Sales Load Waivers on Class A Shares Available at Raymond James
•Shares
purchased in an investment advisory program.
•Shares
purchased within the same fund family through a systematic reinvestment of
capital gains and dividend distributions.
•Employees
and registered representatives of Raymond James or its affiliates and their
family members as designated by Raymond James.
•Shares
purchased from the proceeds of redemptions within the same fund family, provided
(1) the repurchase occurs within 90 days following the redemption, (2) the
redemption and purchase occur in the same account, and (3) redeemed shares were
subject to a front-end or deferred sales load (known as Rights of
Reinstatement).
•A
shareholder in the Fund’s Class C shares will have their shares converted at net
asset value to Class A shares (or the appropriate share class) of the Fund if
the shares are no longer subject to a CDSC and the conversion is in line with
the policies and procedures of Raymond James.
CDSC
Waivers on Classes A and C Shares Available at Raymond James
•Death
or disability of the shareholder.
•Shares
sold as part of a systematic withdrawal plan as described in the fund’s
prospectus.
•Return
of excess contributions from an IRA Account.
•Shares
sold as part of a required minimum distribution for IRA and retirement accounts
due to the shareholder reaching their qualified age based on applicable IRS
regulations as described in the fund’s prospectus.
•Shares
sold to pay Raymond James fees but only if the transaction is initiated by
Raymond James.
•Shares
acquired through a right of reinstatement.
Front-end
Load Discounts Available at Raymond James: Breakpoints, Rights of Accumulation,
and/or Letters of Intent
•Breakpoints
as described in this prospectus.
•Rights
of accumulation which entitle shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of fund family assets
held by accounts within the purchaser’s household at Raymond James. Eligible
fund family assets not held at Raymond James may be included in the calculation
of rights of accumulation only if the shareholder notifies his or her financial
advisor about such assets.
•Letters
of intent which allow for breakpoint discounts based on anticipated purchases
within a fund family, over a 13-month time period. Eligible fund family assets
not held at Raymond James may be included in the calculation of letters of
intent only if the shareholder notifies his or her financial advisor about such
assets.
Robert
W. Baird & Co. Incorporated
Effective
June 15, 2020, shareholders purchasing fund shares through a Robert W. Baird
& Co. Incorporated (“Baird”) platform or account will only be eligible for
the following sales charge waivers (front-end sales charge waivers and CDSC
waivers) and discounts, which may differ from those disclosed elsewhere in this
prospectus or the SAI.
Front-end
Sales Charge Waivers on Investors A-shares Available at Baird
•Shares
purchased through reinvestment of capital gains distributions and dividend
reinvestment when purchasing share of the same fund.
•Share
purchase by employees and registers representatives of Baird or its affiliate
and their family members as designated by Baird.
•Shares
purchase from the proceeds of redemptions from another Principal Funds, Inc.
Fund, provided (1) the repurchase occurs within 90 days following the
redemption, (2) the redemption and purchase occur in the same accounts, and (3)
redeemed shares were subject to a front-end or deferred sales charge (known as
rights of reinstatement).
•A
shareholder in the Funds Investor C Shares will have their share converted at
net asset value to Investor A shares of the fund if the shares are no longer
subject to CDSC and the conversion is in line with the policies and procedures
of Baird.
•Employer-sponsored
retirement plans or charitable accounts in a transactional brokerage account at
Baird, including 401(k) plans, 457 plans, employer-sponsored 403(b) plans,
profit sharing and money purchase pension plans and defined benefit plans. For
purposes of this provision, employer-sponsored retirement plans do not include
SEP IRAs, Simple IRAs or SAR-SEPs.
CDSC
Waivers on Investor A and C shares Available at Baird
•Shares
sold due to death or disability of the shareholder.
•Shares
sold as part of a systematic withdrawal plan as described in the Fund’s
Prospectus.
•Shares
bought due to returns of excess contributions from an IRA Account.
•Shares
sold as part of a required minimum distribution for IRA and retirement accounts
due to the shareholder reaching the qualified age based on applicable IRS
regulations as described in the fund’s prospectus.
•Shares
sold to pay Baird fees but only if the transaction is initiated by
Baird.
•Shares
acquired through a right of reinstatement.
Front-end
Sales Charge Discounts Available at Baird: Breakpoints and/or Rights of
Accumulations
•Breakpoints
as described in this prospectus.
•Rights
of accumulations which entitles shareholders to breakpoint discounts will be
automatically calculated based on the aggregated holding of Principal Funds,
Inc.’s assets held by accounts within the purchaser’s household at Baird.
Eligible Principal Funds, Inc.’s assets not held at Baird may be included in the
rights of accumulations calculation only if the shareholder notifies his or her
financial advisor about such assets.
•Letters
of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of
Principal Funds, Inc.’s funds through Baird, over a 13-month period of
time.
Stifel,
Nicolaus & Company, Incorporated
Effective
July 1, 2020, shareholders purchasing Fund shares through a Stifel, Nicolaus
& Company, Incorporated (“Stifel”) platform or account or who own shares for
which Stifel or an affiliate is the broker‑dealer of record are eligible for the
following additional sales charge waiver.
Front-end
Sales Load Waivers on Class A Shares Available at Stifel
•Class
C shares that have been held for more than seven (7) years will be converted to
Class A shares of the same Fund pursuant to Stifel’s policies and
procedures.
•All
other sales charge waivers and reductions described elsewhere in the Fund’
Prospectus or SAI still apply.
US
Bancorp Investments, Inc. (“USBI”)
Effective
February 2021, Shareholders who purchase fund shares through a USBI platform or
account or who own shares for which USBI or an affiliate is the broker-dealer of
record, where the shares are held in an omnibus account at the fund, and who are
invested in Class C shares will have their shares converted at NAV to Class A
shares (or the appropriate share class) of the fund if the shares are no longer
subject to a CDSC and the conversion is in line with the policies and procedures
of USBI.
(updated
December 31, 2023)
APPENDIX
C – FINANCIAL HIGHLIGHTS
The
following financial highlights tables are intended to help you understand each
Fund’s financial performance for the periods shown. Certain information reflects
returns for a single Fund share. The total returns in each table represent the
rate that an investor would have earned or lost each period on an investment in
the Fund (assuming reinvestment of all distributions). This information has been
derived from the financial statements audited by Ernst & Young LLP,
Independent Registered Public Accounting Firm, whose report, along with each
Fund’s financial statements, is included in Principal Funds, Inc. Annual
Report to Shareholders
for the fiscal year ended October 31, 2023, which is available upon request, and
incorporated by reference into the SAI.
To
request a free copy of the latest Annual or Semi-Annual report for the Funds,
you may telephone 1-800-222-5852.
This
page left blank intentionally.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
CALIFORNIA
MUNICIPAL FUND |
|
|
|
|
|
| |
Class
A shares |
|
|
|
|
|
| |
2023 |
$9.27 |
| $0.28 |
| $0.02 |
| $0.30 |
| ($0.27) |
| ($0.27) |
| $9.30 |
|
2022 |
11.02 |
| 0.25 |
| (1.75) |
| (1.50) |
| (0.25) |
| (0.25) |
| 9.27 |
|
2021 |
10.85 |
| 0.24 |
| 0.17 |
| 0.41 |
| (0.24) |
| (0.24) |
| 11.02 |
|
2020 |
10.80 |
| 0.25 |
| 0.01 |
| 0.26 |
| (0.21) |
| (0.21) |
| 10.85 |
|
2019 |
10.10 |
| 0.32 |
| 0.67 |
| 0.99 |
| (0.29) |
| (0.29) |
| 10.80 |
|
Class
C shares |
|
|
|
|
|
| |
2023 |
9.29 |
| 0.20 |
| 0.02 |
| 0.22 |
| (0.19) |
| (0.19) |
| 9.32 |
|
2022 |
11.05 |
| 0.16 |
| (1.76) |
| (1.60) |
| (0.16) |
| (0.16) |
| 9.29 |
|
2021 |
10.87 |
| 0.15 |
| 0.18 |
| 0.33 |
| (0.15) |
| (0.15) |
| 11.05 |
|
2020 |
10.82 |
| 0.16 |
| 0.01 |
| 0.17 |
| (0.12) |
| (0.12) |
| 10.87 |
|
2019 |
10.12 |
| 0.24 |
| 0.66 |
| 0.90 |
| (0.20) |
| (0.20) |
| 10.82 |
|
Institutional
shares |
|
|
|
|
|
| |
2023 |
9.27 |
| 0.31 |
| 0.02 |
| 0.33 |
| (0.30) |
| (0.30) |
| 9.30 |
|
2022 |
11.03 |
| 0.27 |
| (1.76) |
| (1.49) |
| (0.27) |
| (0.27) |
| 9.27 |
|
2021 |
10.86 |
| 0.26 |
| 0.18 |
| 0.44 |
| (0.27) |
| (0.27) |
| 11.03 |
|
2020 |
10.81 |
| 0.28 |
| 0.01 |
| 0.29 |
| (0.24) |
| (0.24) |
| 10.86 |
|
2019 |
10.10 |
| 0.35 |
| 0.68 |
| 1.03 |
| (0.32) |
| (0.32) |
| 10.81 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Expenses to Average Net Assets (Excluding Interest Expense and
Fees) |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
3.19 |
% |
(b) |
$301,835 |
| 0.89 |
% |
| 0.72 |
% |
(c) |
2.89 |
% |
31.5 |
% |
(13.86) |
| (b),(d) |
328,411 |
| 0.78 |
|
| 0.72 |
| (c) |
2.42 |
| 38.9 |
|
3.89 |
| (b),(d) |
471,777 |
| 0.79 |
|
| 0.76 |
| (c) |
2.11 |
| 13.2 |
|
2.44 |
| (b) |
446,357 |
| 0.79 |
|
| 0.76 |
| (c) |
2.29 |
| 40.1 |
|
9.94 |
| (b) |
420,656 |
| 0.81 |
|
| 0.78 |
| (c) |
3.08 |
| 42.3 |
|
|
|
|
|
|
|
|
| |
2.32 |
| (b) |
21,229 |
| 1.73 |
|
| 1.56 |
| (c) |
2.05 |
| 31.5 |
|
(14.55) |
| (b) |
26,031 |
| 1.60 |
|
| 1.54 |
| (c) |
1.59 |
| 38.9 |
|
3.05 |
| (b) |
39,213 |
| 1.59 |
|
| 1.56 |
| (c) |
1.31 |
| 13.2 |
|
1.61 |
| (b) |
41,166 |
| 1.60 |
|
| 1.57 |
| (c) |
1.49 |
| 40.1 |
|
9.01 |
| (b) |
41,462 |
| 1.65 |
|
| 1.62 |
| (c) |
2.26 |
| 42.3 |
|
|
|
|
|
|
|
|
| |
3.46 |
|
| 235,290 |
| 0.63 |
| (e) |
0.46 |
| (c),(e) |
3.15 |
| 31.5 |
|
(13.65) |
|
| 198,684 |
| 0.53 |
| (e) |
0.47 |
| (c),(e) |
2.68 |
| 38.9 |
|
4.05 |
|
| 217,309 |
| 0.54 |
| (e) |
0.51 |
| (c),(e) |
2.36 |
| 13.2 |
|
2.70 |
|
| 166,577 |
| 0.54 |
| (e) |
0.51 |
| (c),(e) |
2.60 |
| 40.1 |
|
10.34 |
|
| 132,152 |
| 0.54 |
| (e) |
0.51 |
| (c),(e) |
3.35 |
| 42.3 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Excludes
interest
expense
and
fees
paid
through
inverse
floater
agreements.
See
"Operating
Policies"
in
notes
to
financial
statements.
(d)Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which a shareholder would have paid or received from a subscription or
redemption.
(e)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
CORE
FIXED INCOME FUND |
|
|
|
|
|
| |
Class
A shares |
|
|
|
|
|
| |
2023 |
$8.19 |
| $0.22 |
| ($0.22) |
| $– |
| ($0.24) |
| ($0.24) |
| $7.95 |
|
2022 |
9.95 |
| 0.16 |
| (1.72) |
| (1.56) |
| (0.20) |
| (0.20) |
| 8.19 |
|
2021 |
10.17 |
| 0.13 |
| (0.16) |
| (0.03) |
| (0.19) |
| (0.19) |
| 9.95 |
|
2020 |
9.78 |
| 0.18 |
| 0.43 |
| 0.61 |
| (0.22) |
| (0.22) |
| 10.17 |
|
2019 |
9.18 |
| 0.24 |
| 0.64 |
| 0.88 |
| (0.28) |
| (0.28) |
| 9.78 |
|
Class
J shares |
|
|
|
|
|
| |
2023 |
8.21 |
| 0.23 |
| (0.22) |
| 0.01 |
| (0.25) |
| (0.25) |
| 7.97 |
|
2022 |
9.98 |
| 0.17 |
| (1.72) |
| (1.55) |
| (0.22) |
| (0.22) |
| 8.21 |
|
2021 |
10.19 |
| 0.15 |
| (0.15) |
| – |
| (0.21) |
| (0.21) |
| 9.98 |
|
2020 |
9.81 |
| 0.19 |
| 0.43 |
| 0.62 |
| (0.24) |
| (0.24) |
| 10.19 |
|
2019 |
9.20 |
| 0.25 |
| 0.65 |
| 0.90 |
| (0.29) |
| (0.29) |
| 9.81 |
|
Institutional
shares |
|
|
|
|
|
| |
2023 |
8.22 |
| 0.24 |
| (0.21) |
| 0.03 |
| (0.27) |
| (0.27) |
| 7.98 |
|
2022 |
9.99 |
| 0.18 |
| (1.72) |
| (1.54) |
| (0.23) |
| (0.23) |
| 8.22 |
|
2021 |
10.20 |
| 0.16 |
| (0.15) |
| 0.01 |
| (0.22) |
| (0.22) |
| 9.99 |
|
2020 |
9.81 |
| 0.20 |
| 0.44 |
| 0.64 |
| (0.25) |
| (0.25) |
| 10.20 |
|
2019 |
9.20 |
| 0.27 |
| 0.65 |
| 0.92 |
| (0.31) |
| (0.31) |
| 9.81 |
|
R-1
shares |
|
|
|
|
|
| |
2023 |
8.22 |
| 0.18 |
| (0.22) |
| (0.04) |
| (0.20) |
| (0.20) |
| 7.98 |
|
2022 |
9.99 |
| 0.11 |
| (1.72) |
| (1.61) |
| (0.16) |
| (0.16) |
| 8.22 |
|
2021 |
10.20 |
| 0.08 |
| (0.15) |
| (0.07) |
| (0.14) |
| (0.14) |
| 9.99 |
|
2020 |
9.82 |
| 0.13 |
| 0.42 |
| 0.55 |
| (0.17) |
| (0.17) |
| 10.20 |
|
2019 |
9.21 |
| 0.20 |
| 0.65 |
| 0.85 |
| (0.24) |
| (0.24) |
| 9.82 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Gross Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
(0.10) |
% |
(b) |
$201,448 |
| 0.79 |
% |
| – |
% |
| 2.57 |
% |
9.9 |
% |
(15.89) |
| (b),(c) |
199,804 |
| 0.76 |
|
| – |
|
| 1.71 |
| 13.7 |
|
(0.18) |
| (b),(c) |
293,606 |
| 0.78 |
|
| – |
|
| 1.30 |
| 15.8 |
|
6.32 |
| (b) |
337,294 |
| 0.82 |
|
| – |
|
| 1.77 |
| 21.0 |
|
9.73 |
| (b) |
261,383 |
| 0.88 |
|
| – |
|
| 2.52 |
| 19.8 |
|
|
|
|
|
|
|
|
| |
0.04 |
| (b) |
79,226 |
| 0.65 |
| (d) |
0.67 |
| (e) |
2.70 |
| 9.9 |
|
(15.74) |
| (b) |
84,794 |
| 0.62 |
| (d) |
0.64 |
| (e) |
1.85 |
| 13.7 |
|
(0.05) |
| (b) |
114,866 |
| 0.64 |
| (d) |
0.66 |
| (e) |
1.44 |
| 15.8 |
|
6.34 |
| (b) |
132,319 |
| 0.68 |
| (d) |
0.71 |
| (e) |
1.91 |
| 21.0 |
|
9.94 |
| (b) |
97,925 |
| 0.77 |
| (d) |
0.80 |
| (e) |
2.64 |
| 19.8 |
|
|
|
|
|
|
|
|
| |
0.23 |
|
| 785,524 |
| 0.46 |
| (f) |
– |
|
| 2.90 |
| 9.9 |
|
(15.60) |
|
| 636,066 |
| 0.47 |
| (f) |
– |
|
| 2.00 |
| 13.7 |
|
0.06 |
|
| 770,550 |
| 0.54 |
| (f) |
– |
|
| 1.55 |
| 15.8 |
|
6.56 |
|
| 674,265 |
| 0.58 |
| (f) |
– |
|
| 2.02 |
| 21.0 |
|
10.14 |
|
| 519,888 |
| 0.58 |
| (f) |
– |
|
| 2.82 |
| 19.8 |
|
|
|
|
|
|
|
|
| |
(0.56) |
|
| 6,277 |
| 1.26 |
|
| – |
|
| 2.09 |
| 9.9 |
|
(16.27) |
|
| 7,203 |
| 1.26 |
|
| – |
|
| 1.20 |
| 13.7 |
|
(0.69) |
|
| 11,332 |
| 1.29 |
|
| – |
|
| 0.79 |
| 15.8 |
|
5.65 |
|
| 12,967 |
| 1.33 |
|
| – |
|
| 1.28 |
| 21.0 |
|
9.28 |
|
| 15,209 |
| 1.36 |
|
| – |
|
| 2.07 |
| 19.8 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which a shareholder would have paid or received from a subscription or
redemption.
(d)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(e)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(f)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
CORE
FIXED
INCOME
FUND |
|
|
|
|
|
| |
R-3
shares |
|
|
|
|
|
| |
2023 |
$8.24 |
| $0.20 |
| ($0.21) |
| ($0.01) |
| ($0.23) |
| ($0.23) |
| $8.00 |
|
2022 |
10.01 |
| 0.14 |
| (1.72) |
| (1.58) |
| (0.19) |
| (0.19) |
| 8.24 |
|
2021 |
10.22 |
| 0.11 |
| (0.15) |
| (0.04) |
| (0.17) |
| (0.17) |
| 10.01 |
|
2020 |
9.83 |
| 0.16 |
| 0.43 |
| 0.59 |
| (0.20) |
| (0.20) |
| 10.22 |
|
2019 |
9.22 |
| 0.23 |
| 0.64 |
| 0.87 |
| (0.26) |
| (0.26) |
| 9.83 |
|
R-4
shares |
|
|
|
|
|
| |
2023 |
8.23 |
| 0.22 |
| (0.21) |
| 0.01 |
| (0.24) |
| (0.24) |
| 8.00 |
|
2022 |
10.00 |
| 0.16 |
| (1.73) |
| (1.57) |
| (0.20) |
| (0.20) |
| 8.23 |
|
2021 |
10.21 |
| 0.13 |
| (0.15) |
| (0.02) |
| (0.19) |
| (0.19) |
| 10.00 |
|
2020 |
9.83 |
| 0.18 |
| 0.42 |
| 0.60 |
| (0.22) |
| (0.22) |
| 10.21 |
|
2019 |
9.22 |
| 0.24 |
| 0.65 |
| 0.89 |
| (0.28) |
| (0.28) |
| 9.83 |
|
R-5
shares |
|
|
|
|
|
| |
2023 |
8.21 |
| 0.23 |
| (0.21) |
| 0.02 |
| (0.26) |
| (0.26) |
| 7.97 |
|
2022 |
9.98 |
| 0.17 |
| (1.73) |
| (1.56) |
| (0.21) |
| (0.21) |
| 8.21 |
|
2021 |
10.19 |
| 0.14 |
| (0.15) |
| (0.01) |
| (0.20) |
| (0.20) |
| 9.98 |
|
2020 |
9.81 |
| 0.19 |
| 0.42 |
| 0.61 |
| (0.23) |
| (0.23) |
| 10.19 |
|
2019 |
9.20 |
| 0.25 |
| 0.65 |
| 0.90 |
| (0.29) |
| (0.29) |
| 9.81 |
|
R-6
shares |
|
|
|
|
|
| |
2023 |
8.21 |
| 0.25 |
| (0.21) |
| 0.04 |
| (0.28) |
| (0.28) |
| 7.97 |
|
2022 |
9.98 |
| 0.19 |
| (1.72) |
| (1.53) |
| (0.24) |
| (0.24) |
| 8.21 |
|
2021 |
10.19 |
| 0.17 |
| (0.15) |
| 0.02 |
| (0.23) |
| (0.23) |
| 9.98 |
|
2020 |
9.80 |
| 0.21 |
| 0.44 |
| 0.65 |
| (0.26) |
| (0.26) |
| 10.19 |
|
2019 |
9.20 |
| 0.27 |
| 0.65 |
| 0.92 |
| (0.32) |
| (0.32) |
| 9.80 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
| |
|
|
|
|
| |
(0.25) |
% |
$9,070 |
| 0.95 |
% |
| 2.40 |
% |
9.9 |
% |
(15.97) |
| 10,025 |
| 0.95 |
|
| 1.52 |
| 13.7 |
|
(0.38) |
| 12,325 |
| 0.98 |
|
| 1.10 |
| 15.8 |
|
6.07 |
| 19,911 |
| 1.02 |
|
| 1.59 |
| 21.0 |
|
9.61 |
| 24,860 |
| 1.05 |
|
| 2.38 |
| 19.8 |
|
|
|
|
|
| |
0.06 |
| 3,128 |
| 0.76 |
|
| 2.59 |
| 9.9 |
|
(15.83) |
| 10,822 |
| 0.76 |
|
| 1.71 |
| 13.7 |
|
(0.19) |
| 14,605 |
| 0.79 |
|
| 1.29 |
| 15.8 |
|
6.17 |
| 13,116 |
| 0.83 |
|
| 1.77 |
| 21.0 |
|
9.82 |
| 17,519 |
| 0.86 |
|
| 2.57 |
| 19.8 |
|
|
|
|
|
| |
0.06 |
| 19,969 |
| 0.64 |
|
| 2.72 |
| 9.9 |
|
(15.76) |
| 18,198 |
| 0.64 |
|
| 1.81 |
| 13.7 |
|
(0.07) |
| 32,242 |
| 0.67 |
|
| 1.41 |
| 15.8 |
|
6.31 |
| 38,478 |
| 0.71 |
|
| 1.89 |
| 21.0 |
|
9.97 |
| 35,845 |
| 0.74 |
|
| 2.68 |
| 19.8 |
|
|
|
|
|
| |
0.32 |
| 8,552,003 |
| 0.38 |
|
| 2.97 |
| 9.9 |
|
(15.54) |
| 8,288,998 |
| 0.38 |
|
| 2.10 |
| 13.7 |
|
0.18 |
| 9,159,603 |
| 0.41 |
| (b) |
1.67 |
| 15.8 |
|
6.69 |
| 8,278,200 |
| 0.45 |
| (b) |
2.15 |
| 21.0 |
|
10.14 |
| 5,666,716 |
| 0.48 |
| (b) |
2.86 |
| 19.8 |
|
(a)Calculated
based on average shares outstanding during the period.
(b)Reflects
Manager's contractual expense limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
CORE
PLUS BOND FUND |
|
|
|
|
|
|
| |
Class
A shares |
|
|
|
|
|
|
| |
2023 |
$8.84 |
| $0.29 |
| ($0.35) |
| ($0.06) |
| ($0.27) |
| $– |
| ($0.27) |
| $8.51 |
|
2022 |
10.99 |
| 0.20 |
| (2.05) |
| (1.85) |
| (0.17) |
| (0.13) |
| (0.30) |
| 8.84 |
|
2021 |
11.57 |
| 0.17 |
| (0.03) |
| 0.14 |
| (0.19) |
| (0.53) |
| (0.72) |
| 10.99 |
|
2020 |
11.13 |
| 0.24 |
| 0.54 |
| 0.78 |
| (0.34) |
| – |
| (0.34) |
| 11.57 |
|
2019 |
10.36 |
| 0.30 |
| 0.78 |
| 1.08 |
| (0.31) |
| – |
| (0.31) |
| 11.13 |
|
Class
J shares |
|
|
|
|
|
|
| |
2023 |
8.91 |
| 0.28 |
| (0.35) |
| (0.07) |
| (0.26) |
| – |
| (0.26) |
| 8.58 |
|
2022 |
11.08 |
| 0.20 |
| (2.07) |
| (1.87) |
| (0.17) |
| (0.13) |
| (0.30) |
| 8.91 |
|
2021 |
11.66 |
| 0.18 |
| (0.03) |
| 0.15 |
| (0.20) |
| (0.53) |
| (0.73) |
| 11.08 |
|
2020 |
11.21 |
| 0.25 |
| 0.54 |
| 0.79 |
| (0.34) |
| – |
| (0.34) |
| 11.66 |
|
2019 |
10.43 |
| 0.30 |
| 0.79 |
| 1.09 |
| (0.31) |
| – |
| (0.31) |
| 11.21 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
8.84 |
| 0.31 |
| (0.35) |
| (0.04) |
| (0.29) |
| – |
| (0.29) |
| 8.51 |
|
2022 |
10.98 |
| 0.23 |
| (2.04) |
| (1.81) |
| (0.20) |
| (0.13) |
| (0.33) |
| 8.84 |
|
2021 |
11.57 |
| 0.21 |
| (0.04) |
| 0.17 |
| (0.23) |
| (0.53) |
| (0.76) |
| 10.98 |
|
2020 |
11.13 |
| 0.28 |
| 0.53 |
| 0.81 |
| (0.37) |
| – |
| (0.37) |
| 11.57 |
|
2019 |
10.35 |
| 0.34 |
| 0.79 |
| 1.13 |
| (0.35) |
| – |
| (0.35) |
| 11.13 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
8.83 |
| 0.24 |
| (0.35) |
| (0.11) |
| (0.22) |
| – |
| (0.22) |
| 8.50 |
|
2022 |
10.98 |
| 0.15 |
| (2.05) |
| (1.90) |
| (0.12) |
| (0.13) |
| (0.25) |
| 8.83 |
|
2021 |
11.56 |
| 0.11 |
| (0.02) |
| 0.09 |
| (0.14) |
| (0.53) |
| (0.67) |
| 10.98 |
|
2020 |
11.13 |
| 0.19 |
| 0.52 |
| 0.71 |
| (0.28) |
| – |
| (0.28) |
| 11.56 |
|
2019 |
10.35 |
| 0.25 |
| 0.79 |
| 1.04 |
| (0.26) |
| – |
| (0.26) |
| 11.13 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Gross Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
(0.83) |
% |
(b) |
$65,589 |
| 0.84 |
% |
(c) |
– |
% |
| 3.16 |
% |
156.0 |
% |
(17.03) |
| (b) |
69,698 |
| 0.84 |
| (c) |
– |
|
| 2.04 |
| 160.7 |
|
1.24 |
| (b) |
94,268 |
| 0.84 |
| (c) |
– |
|
| 1.54 |
| 181.5 |
|
6.98 |
| (b),(d) |
100,498 |
| 0.88 |
| (c) |
– |
|
| 2.12 |
| 167.0 |
|
10.63 |
| (b),(d) |
89,060 |
| 0.88 |
| (c) |
– |
|
| 2.75 |
| 138.6 |
|
|
|
|
|
|
|
|
| |
(0.93) |
| (b) |
94,195 |
| 0.94 |
| (e) |
0.98 |
| (f) |
3.06 |
| 156.0 |
|
(17.08) |
| (b) |
103,790 |
| 0.85 |
| (e) |
0.93 |
| (f) |
2.04 |
| 160.7 |
|
1.25 |
| (b) |
142,242 |
| 0.82 |
| (e) |
0.91 |
| (f) |
1.56 |
| 181.5 |
|
7.07 |
| (b),(d) |
155,238 |
| 0.83 |
| (e) |
0.92 |
| (f) |
2.17 |
| 167.0 |
|
10.66 |
| (b),(d) |
137,858 |
| 0.88 |
| (e) |
0.97 |
| (f) |
2.76 |
| 138.6 |
|
|
|
|
|
|
|
|
| |
(0.44) |
| (d) |
330,432 |
| 0.56 |
| (c) |
– |
|
| 3.44 |
| 156.0 |
|
(16.89) |
| (d) |
350,465 |
| 0.56 |
| (c) |
– |
|
| 2.34 |
| 160.7 |
|
1.54 |
| (d) |
398,554 |
| 0.56 |
| (c) |
– |
|
| 1.85 |
| 181.5 |
|
7.41 |
|
| 318,810 |
| 0.57 |
| (c) |
– |
|
| 2.44 |
| 167.0 |
|
11.10 |
|
| 1,156,182 |
| 0.46 |
| (c) |
– |
|
| 3.18 |
| 138.6 |
|
|
|
|
|
|
|
|
| |
(1.36) |
|
| 2,834 |
| 1.38 |
| (c) |
– |
|
| 2.61 |
| 156.0 |
|
(17.50) |
|
| 3,181 |
| 1.38 |
| (c) |
– |
|
| 1.51 |
| 160.7 |
|
0.71 |
|
| 3,719 |
| 1.38 |
| (c) |
– |
|
| 1.03 |
| 181.5 |
|
6.45 |
|
| 4,234 |
| 1.38 |
| (c) |
– |
|
| 1.65 |
| 167.0 |
|
10.15 |
|
| 4,758 |
| 1.33 |
| (c) |
– |
|
| 2.30 |
| 138.6 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit.
(d)Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which a shareholder would have paid or received from a subscription or
redemption.
(e)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(f)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
CORE
PLUS BOND FUND |
|
|
|
|
|
|
| |
R-3
shares |
|
|
|
|
|
|
| |
2023 |
$8.77 |
| $0.26 |
| ($0.34) |
| ($0.08) |
| ($0.25) |
| $– |
| ($0.25) |
| $8.44 |
|
2022 |
10.91 |
| 0.18 |
| (2.04) |
| (1.86) |
| (0.15) |
| (0.13) |
| (0.28) |
| 8.77 |
|
2021 |
11.49 |
| 0.15 |
| (0.03) |
| 0.12 |
| (0.17) |
| (0.53) |
| (0.70) |
| 10.91 |
|
2020 |
11.06 |
| 0.22 |
| 0.52 |
| 0.74 |
| (0.31) |
| – |
| (0.31) |
| 11.49 |
|
2019 |
10.29 |
| 0.28 |
| 0.78 |
| 1.06 |
| (0.29) |
| – |
| (0.29) |
| 11.06 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
8.98 |
| 0.29 |
| (0.36) |
| (0.07) |
| (0.26) |
| – |
| (0.26) |
| 8.65 |
|
2022 |
11.16 |
| 0.20 |
| (2.08) |
| (1.88) |
| (0.17) |
| (0.13) |
| (0.30) |
| 8.98 |
|
2021 |
11.74 |
| 0.17 |
| (0.03) |
| 0.14 |
| (0.19) |
| (0.53) |
| (0.72) |
| 11.16 |
|
2020 |
11.29 |
| 0.25 |
| 0.53 |
| 0.78 |
| (0.33) |
| – |
| (0.33) |
| 11.74 |
|
2019 |
10.50 |
| 0.30 |
| 0.80 |
| 1.10 |
| (0.31) |
| – |
| (0.31) |
| 11.29 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
8.78 |
| 0.29 |
| (0.33) |
| (0.04) |
| (0.28) |
| – |
| (0.28) |
| 8.46 |
|
2022 |
10.92 |
| 0.21 |
| (2.04) |
| (1.83) |
| (0.18) |
| (0.13) |
| (0.31) |
| 8.78 |
|
2021 |
11.50 |
| 0.18 |
| (0.03) |
| 0.15 |
| (0.20) |
| (0.53) |
| (0.73) |
| 10.92 |
|
2020 |
11.07 |
| 0.25 |
| 0.53 |
| 0.78 |
| (0.35) |
| – |
| (0.35) |
| 11.50 |
|
2019 |
10.30 |
| 0.31 |
| 0.79 |
| 1.10 |
| (0.33) |
| – |
| (0.33) |
| 11.07 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
| |
|
|
|
|
| |
(1.06) |
% |
$14,967 |
| 1.07 |
% |
(b) |
2.93 |
% |
156.0 |
% |
(17.25) |
| 13,893 |
| 1.07 |
| (b) |
1.81 |
| 160.7 |
|
1.03 |
| 20,465 |
| 1.07 |
| (b) |
1.33 |
| 181.5 |
|
6.83 |
| 20,466 |
| 1.07 |
| (b) |
1.93 |
| 167.0 |
|
10.45 |
| 17,923 |
| 1.02 |
| (b) |
2.61 |
| 138.6 |
|
|
|
|
|
| |
(0.86) |
| 4,425 |
| 0.88 |
| (b) |
3.11 |
| 156.0 |
|
(17.08) |
| 5,015 |
| 0.88 |
| (b) |
2.00 |
| 160.7 |
|
1.19 |
| 6,969 |
| 0.88 |
| (b) |
1.52 |
| 181.5 |
|
7.06 |
| 8,449 |
| 0.88 |
| (b) |
2.16 |
| 167.0 |
|
10.63 |
| 11,540 |
| 0.83 |
| (b) |
2.79 |
| 138.6 |
|
|
|
|
|
| |
(0.64) |
| 37,949 |
| 0.76 |
| (b) |
3.24 |
| 156.0 |
|
(16.98) |
| 38,423 |
| 0.76 |
| (b) |
2.16 |
| 160.7 |
|
1.34 |
| 44,691 |
| 0.76 |
| (b) |
1.64 |
| 181.5 |
|
7.15 |
| 49,176 |
| 0.76 |
| (b) |
2.23 |
| 167.0 |
|
10.78 |
| 38,543 |
| 0.71 |
| (b) |
2.93 |
| 138.6 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Tax
Return of Capital Distribution |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
DIVERSIFIED
INCOME FUND |
|
|
|
|
|
|
| |
Class
A shares |
|
|
|
|
|
|
| |
2023 |
$11.58 |
| $0.70 |
| ($0.35) |
| $0.35 |
| ($0.67) |
| $– |
| ($0.67) |
| $11.26 |
|
2022 |
13.87 |
| 0.55 |
| (2.27) |
| (1.72) |
| (0.56) |
| (0.01) |
| (0.57) |
| 11.58 |
|
2021 |
12.57 |
| 0.56 |
| 1.32 |
| 1.88 |
| (0.58) |
| – |
| (0.58) |
| 13.87 |
|
2020 |
13.72 |
| 0.60 |
| (1.15) |
| (0.55) |
| (0.56) |
| (0.04) |
| (0.60) |
| 12.57 |
|
2019 |
13.20 |
| 0.69 |
| 0.48 |
| 1.17 |
| (0.65) |
| – |
| (0.65) |
| 13.72 |
|
Class
C shares |
|
|
|
|
|
|
| |
2023 |
11.51 |
| 0.61 |
| (0.35) |
| 0.26 |
| (0.58) |
| – |
| (0.58) |
| 11.19 |
|
2022 |
13.78 |
| 0.45 |
| (2.25) |
| (1.80) |
| (0.47) |
| – |
| (0.47) |
| 11.51 |
|
2021 |
12.49 |
| 0.47 |
| 1.29 |
| 1.76 |
| (0.47) |
| – |
| (0.47) |
| 13.78 |
|
2020 |
13.63 |
| 0.50 |
| (1.14) |
| (0.64) |
| (0.47) |
| (0.03) |
| (0.50) |
| 12.49 |
|
2019 |
13.12 |
| 0.58 |
| 0.47 |
| 1.05 |
| (0.54) |
| – |
| (0.54) |
| 13.63 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
11.52 |
| 0.74 |
| (0.35) |
| 0.39 |
| (0.71) |
| – |
| (0.71) |
| 11.20 |
|
2022 |
13.79 |
| 0.59 |
| (2.24) |
| (1.65) |
| (0.61) |
| (0.01) |
| (0.62) |
| 11.52 |
|
2021 |
12.50 |
| 0.61 |
| 1.31 |
| 1.92 |
| (0.63) |
| – |
| (0.63) |
| 13.79 |
|
2020 |
13.66 |
| 0.64 |
| (1.16) |
| (0.52) |
| (0.60) |
| (0.04) |
| (0.64) |
| 12.50 |
|
2019 |
13.14 |
| 0.73 |
| 0.48 |
| 1.21 |
| (0.69) |
| – |
| (0.69) |
| 13.66 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
11.51 |
| 0.73 |
| (0.33) |
| 0.40 |
| (0.72) |
| – |
| (0.72) |
| 11.19 |
|
2022 |
13.78 |
| 0.58 |
| (2.23) |
| (1.65) |
| (0.61) |
| (0.01) |
| (0.62) |
| 11.51 |
|
2021 |
12.49 |
| 0.62 |
| 1.30 |
| 1.92 |
| (0.63) |
| – |
| (0.63) |
| 13.78 |
|
2020 |
13.64 |
| 0.64 |
| (1.15) |
| (0.51) |
| (0.60) |
| (0.04) |
| (0.64) |
| 12.49 |
|
2019 |
13.14 |
| 0.73 |
| 0.46 |
| 1.19 |
| (0.69) |
| – |
| (0.69) |
| 13.64 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Expenses to Average Net Assets (Excluding Dividends and Interest
Expense) |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
2.98 |
% |
(b) |
$1,024,316 |
| 1.03 |
% |
(c) |
N/A |
| 5.95 |
% |
75.1 |
% |
(12.68) |
| (b) |
1,156,493 |
| 1.01 |
| (c) |
N/A |
| 4.31 |
| 72.1 |
|
15.13 |
| (b) |
1,475,288 |
| 1.02 |
| (c) |
N/A |
| 4.10 |
| 93.6 |
|
(4.01) |
| (b),(d) |
1,246,664 |
| 1.01 |
| (c) |
N/A |
| 4.69 |
| 79.7 |
|
9.17 |
| (b),(d) |
1,422,501 |
| 1.02 |
| (c) |
1.02 |
| (c),(e) |
5.10 |
| 87.3 |
|
|
|
|
|
|
|
|
| |
2.18 |
| (b) |
168,004 |
| 1.79 |
| (c) |
N/A |
| 5.17 |
| 75.1 |
|
(13.30) |
| (b) |
269,493 |
| 1.77 |
| (c) |
N/A |
| 3.50 |
| 72.1 |
|
14.24 |
| (b) |
469,597 |
| 1.76 |
| (c) |
N/A |
| 3.48 |
| 93.6 |
|
(4.71) |
| (b),(d) |
828,186 |
| 1.77 |
| (c) |
N/A |
| 3.94 |
| 79.7 |
|
8.30 |
| (b),(d) |
1,403,821 |
| 1.79 |
| (c) |
1.79 |
| (c),(e) |
4.36 |
| 87.3 |
|
|
|
|
|
|
|
|
| |
3.36 |
|
| 1,341,117 |
| 0.68 |
| (c) |
N/A |
| 6.30 |
| 75.1 |
|
(12.31) |
|
| 1,769,364 |
| 0.68 |
| (c) |
N/A |
| 4.63 |
| 72.1 |
|
15.52 |
|
| 2,448,424 |
| 0.68 |
| (c) |
N/A |
| 4.48 |
| 93.6 |
|
(3.71) |
|
| 2,686,381 |
| 0.68 |
| (c) |
N/A |
| 5.03 |
| 79.7 |
|
9.49 |
|
| 4,658,602 |
| 0.69 |
| (c) |
0.69 |
| (c),(e) |
5.43 |
| 87.3 |
|
|
|
|
|
|
|
|
| |
3.37 |
|
| 104,419 |
| 0.67 |
| (c) |
N/A |
| 6.25 |
| 75.1 |
|
(12.31) |
|
| 43,433 |
| 0.67 |
| (c) |
N/A |
| 4.49 |
| 72.1 |
|
15.54 |
|
| 101,194 |
| 0.68 |
| (c) |
N/A |
| 4.54 |
| 93.6 |
|
(3.70) |
| (d) |
133,451 |
| 0.67 |
| (c) |
N/A |
| 5.04 |
| 79.7 |
|
9.43 |
| (d) |
250,055 |
| 0.67 |
| (c) |
0.67 |
| (c),(e) |
5.42 |
| 87.3 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit.
(d)Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which a shareholder would have paid or received from a subscription or
redemption.
(e)Excludes
dividends
and
interest
expense
on
short
sales
and
short
sale
fees
and
reverse
repurchase
agreement
expense.
See
"Operating
Policies"
in
notes
to
financial
statements.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
DIVERSIFIED
INTERNATIONAL FUND |
|
|
|
|
| |
Class
A shares |
|
|
|
|
|
|
| |
2023 |
$10.77 |
| $0.16 |
| $1.01 |
| $1.17 |
| ($0.07) |
| $– |
| ($0.07) |
| $11.87 |
|
2022 |
16.33 |
| 0.21 |
| (3.85) |
| (3.64) |
| (0.50) |
| (1.42) |
| (1.92) |
| 10.77 |
|
2021 |
12.74 |
| 0.18 |
| 3.52 |
| 3.70 |
| (0.11) |
| – |
| (0.11) |
| 16.33 |
|
2020 |
12.52 |
| 0.11 |
| 0.34 |
| 0.45 |
| (0.23) |
| – |
| (0.23) |
| 12.74 |
|
2019 |
12.26 |
| 0.18 |
| 0.79 |
| 0.97 |
| (0.15) |
| (0.56) |
| (0.71) |
| 12.52 |
|
Class
J shares |
|
|
|
|
|
|
| |
2023 |
10.62 |
| 0.17 |
| 1.00 |
| 1.17 |
| (0.09) |
| – |
| (0.09) |
| 11.70 |
|
2022 |
16.13 |
| 0.22 |
| (3.79) |
| (3.57) |
| (0.52) |
| (1.42) |
| (1.94) |
| 10.62 |
|
2021 |
12.58 |
| 0.20 |
| 3.48 |
| 3.68 |
| (0.13) |
| – |
| (0.13) |
| 16.13 |
|
2020 |
12.37 |
| 0.12 |
| 0.34 |
| 0.46 |
| (0.25) |
| – |
| (0.25) |
| 12.58 |
|
2019 |
12.13 |
| 0.19 |
| 0.78 |
| 0.97 |
| (0.17) |
| (0.56) |
| (0.73) |
| 12.37 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
10.71 |
| 0.21 |
| 1.01 |
| 1.22 |
| (0.12) |
| – |
| (0.12) |
| 11.81 |
|
2022 |
16.25 |
| 0.25 |
| (3.82) |
| (3.57) |
| (0.55) |
| (1.42) |
| (1.97) |
| 10.71 |
|
2021 |
12.68 |
| 0.24 |
| 3.49 |
| 3.73 |
| (0.16) |
| – |
| (0.16) |
| 16.25 |
|
2020 |
12.47 |
| 0.15 |
| 0.34 |
| 0.49 |
| (0.28) |
| – |
| (0.28) |
| 12.68 |
|
2019 |
12.23 |
| 0.09 |
| 0.93 |
| 1.02 |
| (0.22) |
| (0.56) |
| (0.78) |
| 12.47 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
10.72 |
| 0.11 |
| 1.01 |
| 1.12 |
| (0.02) |
| – |
| (0.02) |
| 11.82 |
|
2022 |
16.25 |
| 0.15 |
| (3.83) |
| (3.68) |
| (0.43) |
| (1.42) |
| (1.85) |
| 10.72 |
|
2021 |
12.68 |
| 0.11 |
| 3.52 |
| 3.63 |
| (0.06) |
| – |
| (0.06) |
| 16.25 |
|
2020 |
12.46 |
| 0.06 |
| 0.33 |
| 0.39 |
| (0.17) |
| – |
| (0.17) |
| 12.68 |
|
2019 |
12.20 |
| 0.14 |
| 0.79 |
| 0.93 |
| (0.11) |
| (0.56) |
| (0.67) |
| 12.46 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Gross Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
10.89 |
% |
(b) |
$197,169 |
| 1.29 |
% |
(c) |
– |
% |
| 1.28 |
% |
42.2 |
% |
(25.02) |
| (b) |
193,894 |
| 1.23 |
| (c) |
– |
|
| 1.65 |
| 57.0 |
|
29.16 |
| (b) |
267,701 |
| 1.18 |
|
| – |
|
| 1.16 |
| 48.7 |
|
3.59 |
| (b) |
209,868 |
| 1.20 |
| (d) |
– |
|
| 0.90 |
| 45.1 |
|
8.93 |
| (b) |
217,243 |
| 1.27 |
| (d) |
– |
|
| 1.52 |
| 51.0 |
|
|
|
|
|
|
|
|
| |
11.01 |
| (b) |
133,313 |
| 1.17 |
| (c),(e) |
1.19 |
| (f) |
1.41 |
| 42.2 |
|
(24.93) |
| (b) |
125,792 |
| 1.12 |
| (c),(e) |
1.14 |
| (f) |
1.76 |
| 57.0 |
|
29.35 |
| (b) |
178,815 |
| 1.05 |
| (e) |
1.08 |
| (f) |
1.28 |
| 48.7 |
|
3.67 |
| (b) |
143,722 |
| 1.09 |
| (e) |
1.15 |
| (f) |
1.01 |
| 45.1 |
|
9.03 |
| (b) |
153,026 |
| 1.16 |
| (e) |
1.27 |
| (f) |
1.63 |
| 51.0 |
|
|
|
|
|
|
|
|
| |
11.40 |
|
| 388,034 |
| 0.88 |
| (c),(d) |
– |
|
| 1.70 |
| 42.2 |
|
(24.77) |
|
| 402,288 |
| 0.88 |
| (c),(d) |
– |
|
| 1.99 |
| 57.0 |
|
29.63 |
| (g) |
557,003 |
| 0.85 |
| (d) |
– |
|
| 1.50 |
| 48.7 |
|
3.86 |
| (g) |
400,116 |
| 0.85 |
| (d) |
– |
|
| 1.26 |
| 45.1 |
|
9.43 |
|
| 357,306 |
| 0.79 |
| (d) |
– |
|
| 0.81 |
| 51.0 |
|
|
|
|
|
|
|
|
| |
10.45 |
|
| 1,870 |
| 1.67 |
| (c) |
– |
|
| 0.94 |
| 42.2 |
|
(25.32) |
|
| 2,144 |
| 1.66 |
| (c) |
– |
|
| 1.19 |
| 57.0 |
|
28.65 |
|
| 3,061 |
| 1.63 |
|
| – |
|
| 0.68 |
| 48.7 |
|
3.12 |
|
| 2,905 |
| 1.61 |
| (d) |
– |
|
| 0.47 |
| 45.1 |
|
8.50 |
|
| 3,655 |
| 1.63 |
| (d) |
– |
|
| 1.16 |
| 51.0 |
|
(a)Calculated
based on average shares outstanding during the period.
(b)Total
return is calculated without the front-end sales charge or contingent deferred
sales charge, if applicable.
(c)Includes
0.03% of expenses associated with the reclaim of foreign taxes paid. The expense
is not subject to the Manager's contractual expense limit.
(d)Reflects
Manager's contractual expense limit.
(e)Reflects
Manager's contractual expense limit and/or Distributor's voluntary distribution
fee limit.
(f)Excludes
expense reimbursement from Manager and/or Distributor.
(g)Total
return is calculated using the traded net asset value which may differ from the
reported net asset value. The traded net asset value is the net asset value
which a shareholder would have paid or received from a subscription or
redemption.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
DIVERSIFIED
INTERNATIONAL
FUND |
|
|
|
|
|
| |
R-3
shares |
|
|
|
|
|
|
| |
2023 |
$10.74 |
| $0.15 |
| $1.00 |
| $1.15 |
| ($0.05) |
| $– |
| ($0.05) |
| $11.84 |
|
2022 |
16.28 |
| 0.19 |
| (3.83) |
| (3.64) |
| (0.48) |
| (1.42) |
| (1.90) |
| 10.74 |
|
2021 |
12.70 |
| 0.17 |
| 3.51 |
| 3.68 |
| (0.10) |
| – |
| (0.10) |
| 16.28 |
|
2020 |
12.49 |
| 0.10 |
| 0.33 |
| 0.43 |
| (0.22) |
| – |
| (0.22) |
| 12.70 |
|
2019 |
12.21 |
| 0.18 |
| 0.79 |
| 0.97 |
| (0.13) |
| (0.56) |
| (0.69) |
| 12.49 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
10.93 |
| 0.18 |
| 1.02 |
| 1.20 |
| (0.08) |
| – |
| (0.08) |
| 12.05 |
|
2022 |
16.52 |
| 0.22 |
| (3.89) |
| (3.67) |
| (0.50) |
| (1.42) |
| (1.92) |
| 10.93 |
|
2021 |
12.88 |
| 0.18 |
| 3.57 |
| 3.75 |
| (0.11) |
| – |
| (0.11) |
| 16.52 |
|
2020 |
12.66 |
| 0.12 |
| 0.34 |
| 0.46 |
| (0.24) |
| – |
| (0.24) |
| 12.88 |
|
2019 |
12.38 |
| 0.19 |
| 0.81 |
| 1.00 |
| (0.16) |
| (0.56) |
| (0.72) |
| 12.66 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
10.89 |
| 0.18 |
| 1.02 |
| 1.20 |
| (0.09) |
| – |
| (0.09) |
| 12.00 |
|
2022 |
16.48 |
| 0.23 |
| (3.88) |
| (3.65) |
| (0.52) |
| (1.42) |
| (1.94) |
| 10.89 |
|
2021 |
12.85 |
| 0.21 |
| 3.56 |
| 3.77 |
| (0.14) |
| – |
| (0.14) |
| 16.48 |
|
2020 |
12.64 |
| 0.14 |
| 0.33 |
| 0.47 |
| (0.26) |
| – |
| (0.26) |
| 12.85 |
|
2019 |
12.37 |
| 0.21 |
| 0.80 |
| 1.01 |
| (0.18) |
| (0.56) |
| (0.74) |
| 12.64 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
10.73 |
| 0.22 |
| 1.00 |
| 1.22 |
| (0.13) |
| – |
| (0.13) |
| 11.82 |
|
2022 |
16.27 |
| 0.26 |
| (3.82) |
| (3.56) |
| (0.56) |
| (1.42) |
| (1.98) |
| 10.73 |
|
2021 |
12.69 |
| 0.23 |
| 3.52 |
| 3.75 |
| (0.17) |
| – |
| (0.17) |
| 16.27 |
|
2020 |
12.48 |
| 0.17 |
| 0.34 |
| 0.51 |
| (0.30) |
| – |
| (0.30) |
| 12.69 |
|
2019(d) |
11.76 |
| 0.21 |
| 0.51 |
| 0.72 |
| – |
| – |
| – |
| 12.48 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
10.77 |
% |
| $9,612 |
| 1.36 |
% |
(b) |
1.19 |
% |
| 42.2 |
% |
(25.09) |
|
| 9,164 |
| 1.35 |
| (b) |
1.50 |
|
| 57.0 |
|
29.03 |
|
| 14,118 |
| 1.32 |
|
| 1.06 |
|
| 48.7 |
|
3.38 |
|
| 10,932 |
| 1.30 |
| (c) |
0.78 |
|
| 45.1 |
|
8.88 |
|
| 12,322 |
| 1.32 |
| (c) |
1.48 |
|
| 51.0 |
|
|
|
|
|
|
|
| |
10.99 |
|
| 5,379 |
| 1.17 |
| (b) |
1.44 |
|
| 42.2 |
|
(24.92) |
|
| 6,467 |
| 1.16 |
| (b) |
1.69 |
|
| 57.0 |
|
29.21 |
|
| 10,683 |
| 1.13 |
|
| 1.15 |
|
| 48.7 |
|
3.65 |
|
| 10,680 |
| 1.11 |
| (c) |
0.98 |
|
| 45.1 |
|
9.09 |
|
| 17,271 |
| 1.13 |
| (c) |
1.54 |
|
| 51.0 |
|
|
|
|
|
|
|
| |
11.10 |
|
| 17,975 |
| 1.05 |
| (b) |
1.49 |
|
| 42.2 |
|
(24.85) |
|
| 23,589 |
| 1.04 |
| (b) |
1.76 |
|
| 57.0 |
|
29.41 |
|
| 41,789 |
| 1.01 |
|
| 1.35 |
|
| 48.7 |
|
3.72 |
|
| 32,242 |
| 0.99 |
| (c) |
1.11 |
|
| 45.1 |
|
9.21 |
|
| 41,586 |
| 1.01 |
| (c) |
1.78 |
|
| 51.0 |
|
|
|
|
|
|
|
| |
11.40 |
|
| 3,725,314 |
| 0.79 |
| (b),(c) |
1.78 |
|
| 42.2 |
|
(24.66) |
|
| 3,254,802 |
| 0.78 |
| (b),(c) |
2.08 |
|
| 57.0 |
|
29.71 |
|
| 4,491,999 |
| 0.74 |
| (c) |
1.51 |
|
| 48.7 |
|
4.03 |
|
| 10,370,769 |
| 0.73 |
| (c) |
1.38 |
|
| 45.1 |
|
6.12 |
| (e) |
11,175,055 |
| 0.73 |
| (c),(f) |
2.68 |
| (f) |
51.0 |
|
(a)Calculated
based on average shares outstanding during the period.
(b)Includes
0.03% of expenses associated with the reclaim of foreign taxes paid. The expense
is not subject to the Manager's contractual expense limit.
(c)Reflects
Manager's contractual expense limit.
(d)Period
from March 1, 2019, date operations commenced, through October 31,
2019.
(e)Total
return amounts have not been annualized.
(f)Computed
on an annualized basis.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
EQUITY
INCOME FUND |
|
|
|
|
|
|
| |
Class
A shares |
|
|
|
|
|
|
| |
2023 |
$35.30 |
| $0.69 |
| ($0.88) |
| ($0.19) |
| ($0.67) |
| ($1.35) |
| ($2.02) |
| $33.09 |
|
2022 |
41.63 |
| 0.56 |
| (4.79) |
| (4.23) |
| (0.49) |
| (1.61) |
| (2.10) |
| 35.30 |
|
2021 |
30.66 |
| 0.51 |
| 10.94 |
| 11.45 |
| (0.48) |
| – |
| (0.48) |
| 41.63 |
|
2020 |
33.25 |
| 0.55 |
| (1.68) |
| (1.13) |
| (0.51) |
| (0.95) |
| (1.46) |
| 30.66 |
|
2019 |
30.97 |
| 0.56 |
| 3.75 |
| 4.31 |
| (0.60) |
| (1.43) |
| (2.03) |
| 33.25 |
|
Class
C shares |
|
|
|
|
|
|
| |
2023 |
34.23 |
| 0.41 |
| (0.85) |
| (0.44) |
| (0.40) |
| (1.35) |
| (1.75) |
| 32.04 |
|
2022 |
40.42 |
| 0.26 |
| (4.63) |
| (4.37) |
| (0.21) |
| (1.61) |
| (1.82) |
| 34.23 |
|
2021 |
29.78 |
| 0.22 |
| 10.62 |
| 10.84 |
| (0.20) |
| – |
| (0.20) |
| 40.42 |
|
2020 |
32.33 |
| 0.31 |
| (1.62) |
| (1.31) |
| (0.29) |
| (0.95) |
| (1.24) |
| 29.78 |
|
2019 |
30.17 |
| 0.32 |
| 3.64 |
| 3.96 |
| (0.37) |
| (1.43) |
| (1.80) |
| 32.33 |
|
Class
J shares |
|
|
|
|
|
|
| |
2023 |
35.34 |
| 0.73 |
| (0.89) |
| (0.16) |
| (0.70) |
| (1.35) |
| (2.05) |
| 33.13 |
|
2022 |
41.68 |
| 0.60 |
| (4.80) |
| (4.20) |
| (0.53) |
| (1.61) |
| (2.14) |
| 35.34 |
|
2021 |
30.70 |
| 0.55 |
| 10.94 |
| 11.49 |
| (0.51) |
| – |
| (0.51) |
| 41.68 |
|
2020 |
33.29 |
| 0.57 |
| (1.69) |
| (1.12) |
| (0.52) |
| (0.95) |
| (1.47) |
| 30.70 |
|
2019 |
31.01 |
| 0.56 |
| 3.76 |
| 4.32 |
| (0.61) |
| (1.43) |
| (2.04) |
| 33.29 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
35.36 |
| 0.82 |
| (0.89) |
| (0.07) |
| (0.80) |
| (1.35) |
| (2.15) |
| 33.14 |
|
2022 |
41.69 |
| 0.69 |
| (4.79) |
| (4.10) |
| (0.62) |
| (1.61) |
| (2.23) |
| 35.36 |
|
2021 |
30.71 |
| 0.64 |
| 10.95 |
| 11.59 |
| (0.61) |
| – |
| (0.61) |
| 41.69 |
|
2020 |
33.31 |
| 0.66 |
| (1.68) |
| (1.02) |
| (0.63) |
| (0.95) |
| (1.58) |
| 30.71 |
|
2019 |
31.02 |
| 0.68 |
| 3.76 |
| 4.44 |
| (0.72) |
| (1.43) |
| (2.15) |
| 33.31 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average
Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
(0.83) |
% |
(b) |
$1,078,315 |
| 0.87 |
% |
| – |
% |
| 1.96 |
% |
13.3 |
% |
(10.64) |
| (b) |
1,176,246 |
| 0.86 |
|
| – |
|
| 1.48 |
| 16.9 |
|
37.51 |
| (b) |
1,424,668 |
| 0.86 |
|
| – |
|
| 1.33 |
| 22.0 |
|
(3.49) |
| (b) |
1,049,990 |
| 0.88 |
|
| – |
|
| 1.79 |
| 16.9 |
|
15.12 |
| (b) |
1,200,974 |
| 0.91 |
|
| – |
|
| 1.81 |
| 21.5 |
|
|
|
|
|
|
|
|
| |
(1.59) |
| (b) |
72,774 |
| 1.65 |
|
| – |
|
| 1.20 |
| 13.3 |
|
(11.33) |
| (b),(c) |
97,145 |
| 1.62 |
|
| – |
|
| 0.72 |
| 16.9 |
|
36.49 |
| (b),(c) |
125,768 |
| 1.61 |
|
| – |
|
| 0.61 |
| 22.0 |
|
(4.23) |
| (b) |
120,112 |
| 1.63 |
|
| – |
|
| 1.05 |
| 16.9 |
|
14.26 |
| (b) |
155,071 |
| 1.65 |
|
| – |
|
| 1.08 |
| 21.5 |
|
|
|
|
|
|
|
|
| |
(0.75) |
| (b) |
70,291 |
| 0.79 |
| (d) |
0.81 |
| (e) |
2.05 |
| 13.3 |
|
(10.55) |
| (b) |
76,630 |
| 0.77 |
| (d) |
0.79 |
| (e) |
1.58 |
| 16.9 |
|
37.60 |
| (b) |
86,651 |
| 0.77 |
| (d) |
0.79 |
| (e) |
1.42 |
| 22.0 |
|
(3.44) |
| (b) |
61,063 |
| 0.82 |
| (d) |
0.85 |
| (e) |
1.84 |
| 16.9 |
|
15.16 |
| (b) |
69,728 |
| 0.90 |
| (d) |
0.93 |
| (e) |
1.81 |
| 21.5 |
|
|
|
|
|
|
|
|
| |
(0.50) |
|
| 6,448,013 |
| 0.52 |
| (f) |
– |
|
| 2.32 |
| 13.3 |
|
(10.32) |
| (c) |
7,731,338 |
| 0.52 |
| (f) |
– |
|
| 1.82 |
| 16.9 |
|
37.97 |
| (c) |
9,001,763 |
| 0.52 |
| (f) |
– |
|
| 1.68 |
| 22.0 |
|
(3.14) |
|
| 6,372,962 |
| 0.52 |
| (f) |
– |
|
| 2.14 |
| 16.9 |
|
15.57 |
|
| 6,190,503 |
| 0.52 |
| (f) |
– |
|
| 2.19 |
| 21.5 |
|
(a)Calculated
based on average shares outstanding during the period.
(b)Total
return is calculated without the front-end sales charge or contingent deferred
sales charge, if applicable.
(c)Total
return is calculated using the traded net asset value which may differ from the
reported net asset value. The traded net asset value is the net asset value
which a shareholder would have paid or received from a subscription or
redemption.
(d)Reflects
Manager's contractual expense limit and/or Distributor's voluntary distribution
fee limit.
(e)Excludes
expense reimbursement from Manager and/or Distributor.
(f)Reflects
Manager's contractual expense limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
EQUITY
INCOME FUND |
|
|
|
|
|
|
| |
R-1
shares |
|
|
|
|
|
|
| |
2023 |
$35.14 |
| $0.52 |
| ($0.89) |
| ($0.37) |
| ($0.47) |
| ($1.35) |
| ($1.82) |
| $32.95 |
|
2022 |
41.43 |
| 0.36 |
| (4.76) |
| (4.40) |
| (0.28) |
| (1.61) |
| (1.89) |
| 35.14 |
|
2021 |
30.52 |
| 0.31 |
| 10.88 |
| 11.19 |
| (0.28) |
| – |
| (0.28) |
| 41.43 |
|
2020 |
33.10 |
| 0.39 |
| (1.66) |
| (1.27) |
| (0.36) |
| (0.95) |
| (1.31) |
| 30.52 |
|
2019 |
30.84 |
| 0.41 |
| 3.74 |
| 4.15 |
| (0.46) |
| (1.43) |
| (1.89) |
| 33.10 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
35.18 |
| 0.62 |
| (0.88) |
| (0.26) |
| (0.60) |
| (1.35) |
| (1.95) |
| 32.97 |
|
2022 |
41.49 |
| 0.48 |
| (4.77) |
| (4.29) |
| (0.41) |
| (1.61) |
| (2.02) |
| 35.18 |
|
2021 |
30.56 |
| 0.43 |
| 10.90 |
| 11.33 |
| (0.40) |
| – |
| (0.40) |
| 41.49 |
|
2020 |
33.14 |
| 0.49 |
| (1.67) |
| (1.18) |
| (0.45) |
| (0.95) |
| (1.40) |
| 30.56 |
|
2019 |
30.87 |
| 0.52 |
| 3.72 |
| 4.24 |
| (0.54) |
| (1.43) |
| (1.97) |
| 33.14 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
35.26 |
| 0.69 |
| (0.89) |
| (0.20) |
| (0.66) |
| (1.35) |
| (2.01) |
| 33.05 |
|
2022 |
41.58 |
| 0.55 |
| (4.78) |
| (4.23) |
| (0.48) |
| (1.61) |
| (2.09) |
| 35.26 |
|
2021 |
30.62 |
| 0.50 |
| 10.93 |
| 11.43 |
| (0.47) |
| – |
| (0.47) |
| 41.58 |
|
2020 |
33.21 |
| 0.54 |
| (1.67) |
| (1.13) |
| (0.51) |
| (0.95) |
| (1.46) |
| 30.62 |
|
2019 |
30.94 |
| 0.57 |
| 3.73 |
| 4.30 |
| (0.60) |
| (1.43) |
| (2.03) |
| 33.21 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
35.31 |
| 0.73 |
| (0.88) |
| (0.15) |
| (0.71) |
| (1.35) |
| (2.06) |
| 33.10 |
|
2022 |
41.64 |
| 0.60 |
| (4.79) |
| (4.19) |
| (0.53) |
| (1.61) |
| (2.14) |
| 35.31 |
|
2021 |
30.67 |
| 0.55 |
| 10.93 |
| 11.48 |
| (0.51) |
| – |
| (0.51) |
| 41.64 |
|
2020 |
33.26 |
| 0.58 |
| (1.67) |
| (1.09) |
| (0.55) |
| (0.95) |
| (1.50) |
| 30.67 |
|
2019 |
30.98 |
| 0.61 |
| 3.74 |
| 4.35 |
| (0.64) |
| (1.43) |
| (2.07) |
| 33.26 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
| |
|
|
|
| |
(1.34) |
% |
$1,109 |
| 1.39 |
% |
1.46 |
% |
13.3 |
% |
(11.09) |
| 1,942 |
| 1.39 |
| 0.96 |
| 16.9 |
|
36.76 |
| 2,957 |
| 1.38 |
| 0.80 |
| 22.0 |
|
(3.99) |
| 2,424 |
| 1.39 |
| 1.27 |
| 16.9 |
|
14.59 |
| 2,746 |
| 1.39 |
| 1.34 |
| 21.5 |
|
|
|
|
| |
(1.05) |
| 25,777 |
| 1.08 |
| 1.77 |
| 13.3 |
|
(10.81) |
| 30,045 |
| 1.08 |
| 1.27 |
| 16.9 |
|
37.21 |
| 33,754 |
| 1.07 |
| 1.12 |
| 22.0 |
|
(3.68) |
| 24,058 |
| 1.08 |
| 1.59 |
| 16.9 |
|
14.92 |
| 31,298 |
| 1.08 |
| 1.68 |
| 21.5 |
|
|
|
|
| |
(0.85) |
| 21,869 |
| 0.89 |
| 1.95 |
| 13.3 |
|
(10.65) |
| 27,590 |
| 0.89 |
| 1.45 |
| 16.9 |
|
37.48 |
| 32,675 |
| 0.88 |
| 1.30 |
| 22.0 |
|
(3.50) |
| 28,701 |
| 0.89 |
| 1.76 |
| 16.9 |
|
15.11 |
| 36,352 |
| 0.89 |
| 1.83 |
| 21.5 |
|
|
|
|
| |
(0.73) |
| 127,806 |
| 0.77 |
| 2.07 |
| 13.3 |
|
(10.54) |
| 147,468 |
| 0.77 |
| 1.57 |
| 16.9 |
|
37.62 |
| 179,232 |
| 0.76 |
| 1.43 |
| 22.0 |
|
(3.37) |
| 129,146 |
| 0.77 |
| 1.89 |
| 16.9 |
|
15.28 |
| 158,549 |
| 0.77 |
| 1.95 |
| 21.5 |
|
(a)Calculated
based on average shares outstanding during the period.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Tax
Return of Capital Distribution |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
FINISTERRE
EMERGING MARKETS TOTAL RETURN BOND FUND |
Institutional
shares |
|
|
|
|
|
|
|
| |
2023 |
$7.92 |
| $0.61 |
| $0.26 |
| $0.87 |
| ($0.54) |
| $– |
| $– |
| ($0.54) |
| $8.25 |
|
2022 |
10.28 |
| 0.49 |
| (2.21) |
| (1.72) |
| (0.64) |
| – |
| – |
| (0.64) |
| 7.92 |
|
2021 |
10.24 |
| 0.39 |
| 0.07 |
| 0.46 |
| (0.29) |
| (0.09) |
| (0.04) |
| (0.42) |
| 10.28 |
|
2020 |
10.51 |
| 0.39 |
| (0.09) |
| 0.30 |
| (0.40) |
| (0.17) |
| – |
| (0.57) |
| 10.24 |
|
2019 |
9.81 |
| 0.43 |
| 0.76 |
| 1.19 |
| (0.49) |
| – |
| – |
| (0.49) |
| 10.51 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
| |
|
|
|
|
| |
10.97 |
% |
$447,683 |
| 0.85 |
% |
(b) |
7.02 |
% |
139.8 |
% |
(17.17) |
| 378,572 |
| 0.84 |
| (b) |
5.24 |
| 117.4 |
|
4.47 |
| 770,197 |
| 0.85 |
| (b) |
3.69 |
| 170.3 |
|
2.90 |
| 226,511 |
| 0.85 |
| (b) |
3.78 |
| 285.3 |
|
12.52 |
| 241,465 |
| 0.87 |
| (b) |
4.21 |
| 312.5 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
GLOBAL
EMERGING MARKETS FUND |
Class
A shares |
|
|
|
|
|
|
| |
2023 |
$20.06 |
| $0.28 |
| $2.59 |
| $2.87 |
| ($0.24) |
| $– |
| ($0.24) |
| $22.69 |
|
2022 |
31.87 |
| 0.37 |
| (10.12) |
| (9.75) |
| (0.31) |
| (1.75) |
| (2.06) |
| 20.06 |
|
2021 |
26.98 |
| 0.20 |
| 4.73 |
| 4.93 |
| (0.04) |
| – |
| (0.04) |
| 31.87 |
|
2020 |
25.02 |
| 0.13 |
| 2.55 |
| 2.68 |
| (0.44) |
| (0.28) |
| (0.72) |
| 26.98 |
|
2019 |
24.03 |
| 0.47 |
| 1.20 |
| 1.67 |
| (0.17) |
| (0.51) |
| (0.68) |
| 25.02 |
|
Class
J shares |
|
|
|
|
|
|
| |
2023 |
19.23 |
| 0.30 |
| 2.47 |
| 2.77 |
| (0.28) |
| – |
| (0.28) |
| 21.72 |
|
2022 |
30.64 |
| 0.38 |
| (9.67) |
| (9.29) |
| (0.37) |
| (1.75) |
| (2.12) |
| 19.23 |
|
2021 |
25.94 |
| 0.25 |
| 4.53 |
| 4.78 |
| (0.08) |
| – |
| (0.08) |
| 30.64 |
|
2020 |
24.09 |
| 0.17 |
| 2.45 |
| 2.62 |
| (0.49) |
| (0.28) |
| (0.77) |
| 25.94 |
|
2019 |
23.15 |
| 0.48 |
| 1.16 |
| 1.64 |
| (0.19) |
| (0.51) |
| (0.70) |
| 24.09 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
19.86 |
| 0.36 |
| 2.54 |
| 2.90 |
| (0.32) |
| – |
| (0.32) |
| 22.44 |
|
2022 |
31.58 |
| 0.47 |
| (10.01) |
| (9.54) |
| (0.43) |
| (1.75) |
| (2.18) |
| 19.86 |
|
2021 |
26.72 |
| 0.32 |
| 4.66 |
| 4.98 |
| (0.12) |
| – |
| (0.12) |
| 31.58 |
|
2020 |
24.78 |
| 0.22 |
| 2.54 |
| 2.76 |
| (0.54) |
| (0.28) |
| (0.82) |
| 26.72 |
|
2019 |
23.83 |
| 0.58 |
| 1.14 |
| 1.72 |
| (0.26) |
| (0.51) |
| (0.77) |
| 24.78 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
19.70 |
| 0.16 |
| 2.55 |
| 2.71 |
| (0.14) |
| – |
| (0.14) |
| 22.27 |
|
2022 |
31.32 |
| 0.24 |
| (9.93) |
| (9.69) |
| (0.18) |
| (1.75) |
| (1.93) |
| 19.70 |
|
2021 |
26.60 |
| 0.06 |
| 4.66 |
| 4.72 |
| – |
| – |
| – |
| 31.32 |
|
2020 |
24.66 |
| 0.02 |
| 2.50 |
| 2.52 |
| (0.30) |
| (0.28) |
| (0.58) |
| 26.60 |
|
2019 |
23.66 |
| 0.34 |
| 1.20 |
| 1.54 |
| (0.03) |
| (0.51) |
| (0.54) |
| 24.66 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Gross Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
14.33 |
% |
(b) |
$63,629 |
| 1.47 |
% |
(c) |
– |
% |
| 1.20 |
% |
32.4 |
% |
(32.46) |
| (b) |
60,893 |
| 1.55 |
| (c) |
– |
|
| 1.44 |
| 34.7 |
|
18.27 |
| (b) |
91,585 |
| 1.56 |
| (c),(d) |
– |
|
| 0.63 |
| 43.9 |
|
10.84 |
| (b),(e) |
76,952 |
| 1.55 |
| (c) |
– |
|
| 0.55 |
| 53.9 |
|
7.22 |
| (b) |
77,559 |
| 1.57 |
| (c) |
– |
|
| 1.91 |
| 148.3 |
|
|
|
|
|
|
|
|
| |
14.46 |
| (b) |
65,679 |
| 1.31 |
| (f) |
1.59 |
| (g) |
1.35 |
| 32.4 |
|
(32.31) |
| (b) |
61,730 |
| 1.37 |
| (f) |
1.52 |
| (g) |
1.58 |
| 34.7 |
|
18.46 |
| (b) |
99,899 |
| 1.38 |
| (d),(f) |
1.48 |
| (g) |
0.80 |
| 43.9 |
|
11.01 |
| (b),(e) |
89,271 |
| 1.37 |
| (f) |
1.62 |
| (g) |
0.73 |
| 53.9 |
|
7.41 |
| (b) |
88,924 |
| 1.41 |
| (f) |
1.78 |
| (g) |
2.06 |
| 148.3 |
|
|
|
|
|
|
|
|
| |
14.66 |
|
| 67,145 |
| 1.12 |
| (c) |
– |
|
| 1.54 |
| 32.4 |
|
(32.20) |
|
| 60,449 |
| 1.20 |
| (c) |
– |
|
| 1.90 |
| 34.7 |
|
18.66 |
|
| 73,485 |
| 1.21 |
| (c),(d) |
– |
|
| 0.98 |
| 43.9 |
|
11.21 |
| (e),(h) |
62,738 |
| 1.20 |
| (c) |
– |
|
| 0.90 |
| 53.9 |
|
7.60 |
| (h) |
111,045 |
| 1.22 |
| (c) |
– |
|
| 2.39 |
| 148.3 |
|
|
|
|
|
|
|
|
| |
13.75 |
|
| 1,081 |
| 1.97 |
|
| – |
|
| 0.70 |
| 32.4 |
|
(32.73) |
|
| 1,114 |
| 2.00 |
|
| – |
|
| 0.97 |
| 34.7 |
|
17.74 |
|
| 1,702 |
| 1.99 |
| (d) |
– |
|
| 0.20 |
| 43.9 |
|
10.29 |
| (e) |
1,458 |
| 2.02 |
| (c) |
– |
|
| 0.06 |
| 53.9 |
|
6.72 |
|
| 1,970 |
| 2.04 |
| (c) |
– |
|
| 1.41 |
| 148.3 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit.
(d)Includes
0.01%
of
expenses
associated
with
the
reclaim
of
foreign
taxes
paid.
The
expense
is
not
subject
to
the
Manager's
contractual
expense
limit.
(e)During
the
year
ended
October
31,
2020,
the
fund
experienced
a
significant
one
time
gain
of
approximately
$0.11/share
as
a
result
of
a
settlement
in
a
litigation
proceeding.
If such
gain
had not
been
recognized, the
total
return amounts
expressed
herein would
have
been lower.
(f)Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which a shareholder would have paid or received from a subscription or
redemption.
(g)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(h)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
GLOBAL
EMERGING MARKETS FUND |
R-3
shares |
|
|
|
|
|
|
| |
2023 |
$19.79 |
| $0.23 |
| $2.56 |
| $2.79 |
| ($0.21) |
| $– |
| ($0.21) |
| $22.37 |
|
2022 |
31.46 |
| 0.31 |
| (9.96) |
| (9.65) |
| (0.27) |
| (1.75) |
| (2.02) |
| 19.79 |
|
2021 |
26.64 |
| 0.17 |
| 4.65 |
| 4.82 |
| – |
| – |
| – |
| 31.46 |
|
2020 |
24.72 |
| 0.09 |
| 2.52 |
| 2.61 |
| (0.41) |
| (0.28) |
| (0.69) |
| 26.64 |
|
2019 |
23.70 |
| 0.41 |
| 1.20 |
| 1.61 |
| (0.08) |
| (0.51) |
| (0.59) |
| 24.72 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
19.94 |
| 0.28 |
| 2.56 |
| 2.84 |
| (0.24) |
| – |
| (0.24) |
| 22.54 |
|
2022 |
31.69 |
| 0.38 |
| (10.05) |
| (9.67) |
| (0.33) |
| (1.75) |
| (2.08) |
| 19.94 |
|
2021 |
26.82 |
| 0.22 |
| 4.69 |
| 4.91 |
| (0.04) |
| – |
| (0.04) |
| 31.69 |
|
2020 |
24.84 |
| 0.14 |
| 2.54 |
| 2.68 |
| (0.42) |
| (0.28) |
| (0.70) |
| 26.82 |
|
2019 |
23.83 |
| 0.42 |
| 1.24 |
| 1.66 |
| (0.14) |
| (0.51) |
| (0.65) |
| 24.84 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
19.93 |
| 0.31 |
| 2.56 |
| 2.87 |
| (0.28) |
| – |
| (0.28) |
| 22.52 |
|
2022 |
31.66 |
| 0.40 |
| (10.02) |
| (9.62) |
| (0.36) |
| (1.75) |
| (2.11) |
| 19.93 |
|
2021 |
26.79 |
| 0.26 |
| 4.69 |
| 4.95 |
| (0.08) |
| – |
| (0.08) |
| 31.66 |
|
2020 |
24.84 |
| 0.17 |
| 2.54 |
| 2.71 |
| (0.48) |
| (0.28) |
| (0.76) |
| 26.79 |
|
2019 |
23.87 |
| 0.47 |
| 1.21 |
| 1.68 |
| (0.20) |
| (0.51) |
| (0.71) |
| 24.84 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
19.88 |
| 0.35 |
| 2.58 |
| 2.93 |
| (0.34) |
| – |
| (0.34) |
| 22.47 |
|
2022 |
31.60 |
| 0.44 |
| (9.95) |
| (9.51) |
| (0.46) |
| (1.75) |
| (2.21) |
| 19.88 |
|
2021 |
26.74 |
| 0.36 |
| 4.65 |
| 5.01 |
| (0.15) |
| – |
| (0.15) |
| 31.60 |
|
2020 |
24.79 |
| 0.26 |
| 2.52 |
| 2.78 |
| (0.55) |
| (0.28) |
| (0.83) |
| 26.74 |
|
2019 |
23.84 |
| 0.15 |
| 1.58 |
| 1.73 |
| (0.27) |
| (0.51) |
| (0.78) |
| 24.79 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
| |
|
|
|
|
|
| |
14.10 |
% |
| $4,132 |
| 1.66 |
% |
| 1.00 |
% |
32.4 |
% |
(32.54) |
|
| 3,733 |
| 1.69 |
|
| 1.23 |
| 34.7 |
|
18.09 |
|
| 6,358 |
| 1.68 |
| (b) |
0.53 |
| 43.9 |
|
10.67 |
| (c) |
5,693 |
| 1.71 |
| (d) |
0.39 |
| 53.9 |
|
7.05 |
|
| 6,052 |
| 1.73 |
| (d) |
1.70 |
| 148.3 |
|
|
|
|
|
|
| |
14.29 |
|
| 2,099 |
| 1.47 |
|
| 1.19 |
| 32.4 |
|
(32.40) |
|
| 2,335 |
| 1.50 |
|
| 1.51 |
| 34.7 |
|
18.32 |
|
| 3,585 |
| 1.49 |
| (b) |
0.69 |
| 43.9 |
|
10.85 |
| (c),(e) |
3,184 |
| 1.52 |
| (d) |
0.56 |
| 53.9 |
|
7.28 |
| (e) |
4,440 |
| 1.54 |
| (d) |
1.72 |
| 148.3 |
|
|
|
|
|
|
| |
14.42 |
|
| 4,691 |
| 1.35 |
|
| 1.32 |
| 32.4 |
|
(32.32) |
|
| 4,563 |
| 1.38 |
|
| 1.60 |
| 34.7 |
|
18.48 |
|
| 8,234 |
| 1.37 |
| (b) |
0.79 |
| 43.9 |
|
10.98 |
| (c),(e) |
8,537 |
| 1.40 |
| (d) |
0.68 |
| 53.9 |
|
7.40 |
| (e) |
10,943 |
| 1.42 |
| (d) |
1.96 |
| 148.3 |
|
|
|
|
|
|
| |
14.81 |
|
| 3,961 |
| 1.04 |
| (d) |
1.51 |
| 32.4 |
|
(32.14) |
| (e) |
2,165 |
| 1.09 |
| (d) |
1.71 |
| 34.7 |
|
18.79 |
| (e) |
4,121 |
| 1.10 |
| (b),(d) |
1.12 |
| 43.9 |
|
11.31 |
| (c),(e) |
3,086 |
| 1.09 |
| (d) |
1.07 |
| 53.9 |
|
7.66 |
| (e) |
7,834 |
| 1.14 |
| (d) |
0.63 |
| 148.3 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Includes
0.01%
of
expenses
associated
with
the
reclaim
of
foreign
taxes
paid.
The
expense
is
not
subject
to
the
Manager's
contractual
expense
limit.
(c)During
the
year
ended
October
31,
2020,
the
fund
experienced
a
significant
one
time
gain
of
approximately
$0.11/share
as
a
result
of
a
settlement
in
a
litigation
proceeding.
If such
gain
had not
been
recognized, the
total
return amounts
expressed
herein would
have
been lower.
(d)Reflects
Manager's
contractual
expense
limit.
(e)Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which a shareholder would have paid or received from a subscription or
redemption.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
GLOBAL
REAL ESTATE SECURITIES FUND |
Class
A shares |
|
|
|
|
|
|
| |
2023 |
$7.69 |
| $0.16 |
| ($0.54) |
| ($0.38) |
| ($0.06) |
| $– |
| ($0.06) |
| $7.25 |
|
2022 |
10.83 |
| 0.14 |
| (3.03) |
| (2.89) |
| (0.21) |
| (0.04) |
| (0.25) |
| 7.69 |
|
2021 |
7.98 |
| 0.12 |
| 2.80 |
| 2.92 |
| (0.07) |
| – |
| (0.07) |
| 10.83 |
|
2020 |
10.11 |
| 0.13 |
| (1.83) |
| (1.70) |
| (0.12) |
| (0.31) |
| (0.43) |
| 7.98 |
|
2019 |
8.62 |
| 0.12 |
| 1.79 |
| 1.91 |
| (0.36) |
| (0.06) |
| (0.42) |
| 10.11 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
8.37 |
| 0.21 |
| (0.58) |
| (0.37) |
| (0.10) |
| – |
| (0.10) |
| 7.90 |
|
2022 |
11.76 |
| 0.19 |
| (3.30) |
| (3.11) |
| (0.24) |
| (0.04) |
| (0.28) |
| 8.37 |
|
2021 |
8.64 |
| 0.16 |
| 3.04 |
| 3.20 |
| (0.08) |
| – |
| (0.08) |
| 11.76 |
|
2020 |
10.90 |
| 0.17 |
| (1.97) |
| (1.80) |
| (0.15) |
| (0.31) |
| (0.46) |
| 8.64 |
|
2019 |
9.25 |
| 0.17 |
| 1.93 |
| 2.10 |
| (0.39) |
| (0.06) |
| (0.45) |
| 10.90 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
8.31 |
| 0.16 |
| (0.58) |
| (0.42) |
| (0.05) |
| – |
| (0.05) |
| 7.84 |
|
2022 |
11.68 |
| 0.13 |
| (3.26) |
| (3.13) |
| (0.20) |
| (0.04) |
| (0.24) |
| 8.31 |
|
2021 |
8.61 |
| 0.12 |
| 3.02 |
| 3.14 |
| (0.07) |
| – |
| (0.07) |
| 11.68 |
|
2020 |
10.88 |
| 0.13 |
| (1.97) |
| (1.84) |
| (0.12) |
| (0.31) |
| (0.43) |
| 8.61 |
|
2019 |
9.24 |
| 0.12 |
| 1.92 |
| 2.04 |
| (0.34) |
| (0.06) |
| (0.40) |
| 10.88 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
8.33 |
| 0.18 |
| (0.59) |
| (0.41) |
| (0.06) |
| – |
| (0.06) |
| 7.86 |
|
2022 |
11.70 |
| 0.15 |
| (3.27) |
| (3.12) |
| (0.21) |
| (0.04) |
| (0.25) |
| 8.33 |
|
2021 |
8.61 |
| 0.13 |
| 3.03 |
| 3.16 |
| (0.07) |
| – |
| (0.07) |
| 11.70 |
|
2020 |
10.88 |
| 0.13 |
| (1.96) |
| (1.83) |
| (0.13) |
| (0.31) |
| (0.44) |
| 8.61 |
|
2019 |
9.24 |
| 0.14 |
| 1.92 |
| 2.06 |
| (0.36) |
| (0.06) |
| (0.42) |
| 10.88 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
8.35 |
| 0.19 |
| (0.59) |
| (0.40) |
| (0.08) |
| – |
| (0.08) |
| 7.87 |
|
2022 |
11.74 |
| 0.18 |
| (3.28) |
| (3.10) |
| (0.25) |
| (0.04) |
| (0.29) |
| 8.35 |
|
2021 |
8.64 |
| 0.14 |
| 3.03 |
| 3.17 |
| (0.07) |
| – |
| (0.07) |
| 11.74 |
|
2020 |
10.90 |
| 0.14 |
| (1.95) |
| (1.81) |
| (0.14) |
| (0.31) |
| (0.45) |
| 8.64 |
|
2019 |
9.26 |
| 0.14 |
| 1.94 |
| 2.08 |
| (0.38) |
| (0.06) |
| (0.44) |
| 10.90 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
8.38 |
| 0.22 |
| (0.59) |
| (0.37) |
| (0.10) |
| – |
| (0.10) |
| 7.91 |
|
2022 |
11.77 |
| 0.19 |
| (3.29) |
| (3.10) |
| (0.25) |
| (0.04) |
| (0.29) |
| 8.38 |
|
2021 |
8.64 |
| 0.17 |
| 3.04 |
| 3.21 |
| (0.08) |
| – |
| (0.08) |
| 11.77 |
|
2020 |
10.90 |
| 0.18 |
| (1.98) |
| (1.80) |
| (0.15) |
| (0.31) |
| (0.46) |
| 8.64 |
|
2019 |
9.25 |
| 0.17 |
| 1.94 |
| 2.11 |
| (0.40) |
| (0.06) |
| (0.46) |
| 10.90 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
| |
|
|
|
|
|
| |
(4.98) |
% |
(b) |
$55,011 |
| 1.36 |
% |
| 2.01 |
% |
24.3 |
% |
(27.34) |
| (b) |
82,943 |
| 1.31 |
|
| 1.45 |
| 16.8 |
|
36.76 |
| (b) |
112,900 |
| 1.29 |
|
| 1.22 |
| 25.9 |
|
(17.41) |
| (b) |
83,680 |
| 1.33 |
|
| 1.48 |
| 41.7 |
|
22.96 |
| (b) |
124,180 |
| 1.35 |
|
| 1.28 |
| 42.4 |
|
|
|
|
|
|
| |
(4.54) |
|
| 1,090,278 |
| 0.94 |
| (c) |
2.43 |
| 24.3 |
|
(27.10) |
|
| 1,422,719 |
| 0.94 |
| (c) |
1.79 |
| 16.8 |
|
37.21 |
|
| 2,394,983 |
| 0.94 |
| (c) |
1.53 |
| 25.9 |
|
(17.09) |
|
| 1,587,908 |
| 0.94 |
| (c) |
1.87 |
| 41.7 |
|
23.55 |
|
| 2,203,413 |
| 0.94 |
| (c) |
1.73 |
| 42.4 |
|
|
|
|
|
|
| |
(5.13) |
|
| 724 |
| 1.45 |
|
| 1.88 |
| 24.3 |
|
(27.40) |
|
| 578 |
| 1.45 |
|
| 1.27 |
| 16.8 |
|
36.57 |
|
| 544 |
| 1.44 |
|
| 1.11 |
| 25.9 |
|
(17.51) |
|
| 379 |
| 1.44 |
|
| 1.36 |
| 41.7 |
|
22.86 |
|
| 385 |
| 1.44 |
|
| 1.16 |
| 42.4 |
|
|
|
|
|
|
| |
(4.94) |
|
| 612 |
| 1.26 |
|
| 2.11 |
| 24.3 |
|
(27.25) |
|
| 554 |
| 1.26 |
|
| 1.48 |
| 16.8 |
|
36.87 |
|
| 852 |
| 1.25 |
|
| 1.25 |
| 25.9 |
|
(17.37) |
|
| 581 |
| 1.25 |
|
| 1.45 |
| 41.7 |
|
23.08 |
|
| 44 |
| 1.25 |
|
| 1.41 |
| 42.4 |
|
|
|
|
|
|
| |
(4.84) |
|
| 6,431 |
| 1.14 |
|
| 2.24 |
| 24.3 |
|
(27.13) |
|
| 5,935 |
| 1.14 |
|
| 1.79 |
| 16.8 |
|
36.91 |
|
| 353 |
| 1.13 |
|
| 1.27 |
| 25.9 |
|
(17.22) |
|
| 199 |
| 1.13 |
|
| 1.57 |
| 41.7 |
|
23.24 |
|
| 161 |
| 1.13 |
|
| 1.36 |
| 42.4 |
|
|
|
|
|
|
| |
(4.59) |
| (d) |
650,870 |
| 0.89 |
|
| 2.47 |
| 24.3 |
|
(27.02) |
|
| 707,703 |
| 0.88 |
| (c) |
1.84 |
| 16.8 |
|
37.35 |
|
| 1,585,562 |
| 0.87 |
| (c) |
1.59 |
| 25.9 |
|
(17.06) |
|
| 1,039,109 |
| 0.88 |
| (c) |
1.92 |
| 41.7 |
|
23.63 |
|
| 1,133,581 |
| 0.87 |
| (c) |
1.72 |
| 42.4 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit.
(d)Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which a shareholder would have paid or received from a subscription or
redemption.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock outstanding throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
GOVERNMENT
&
HIGH
QUALITY
BOND
FUND |
Class
A shares |
|
|
|
|
|
| |
2023 |
$8.62 |
| $0.20 |
| ($0.33) |
| ($0.13) |
| ($0.23) |
| ($0.23) |
| $8.26 |
|
2022 |
10.32 |
| 0.09 |
| (1.66) |
| (1.57) |
| (0.13) |
| (0.13) |
| 8.62 |
|
2021 |
10.59 |
| 0.03 |
| (0.18) |
| (0.15) |
| (0.12) |
| (0.12) |
| 10.32 |
|
2020 |
10.52 |
| 0.15 |
| 0.14 |
| 0.29 |
| (0.22) |
| (0.22) |
| 10.59 |
|
2019 |
9.94 |
| 0.21 |
| 0.63 |
| 0.84 |
| (0.26) |
| (0.26) |
| 10.52 |
|
Class
J shares |
|
|
|
|
|
| |
2023 |
8.64 |
| 0.20 |
| (0.34) |
| (0.14) |
| (0.22) |
| (0.22) |
| 8.28 |
|
2022 |
10.35 |
| 0.09 |
| (1.68) |
| (1.59) |
| (0.12) |
| (0.12) |
| 8.64 |
|
2021 |
10.62 |
| 0.03 |
| (0.19) |
| (0.16) |
| (0.11) |
| (0.11) |
| 10.35 |
|
2020 |
10.55 |
| 0.15 |
| 0.14 |
| 0.29 |
| (0.22) |
| (0.22) |
| 10.62 |
|
2019 |
9.97 |
| 0.20 |
| 0.63 |
| 0.83 |
| (0.25) |
| (0.25) |
| 10.55 |
|
Institutional
shares |
|
|
|
|
| |
2023 |
8.63 |
| 0.23 |
| (0.32) |
| (0.09) |
| (0.26) |
| (0.26) |
| 8.28 |
|
2022 |
10.34 |
| 0.11 |
| (1.67) |
| (1.56) |
| (0.15) |
| (0.15) |
| 8.63 |
|
2021 |
10.61 |
| 0.06 |
| (0.19) |
| (0.13) |
| (0.14) |
| (0.14) |
| 10.34 |
|
2020 |
10.54 |
| 0.18 |
| 0.14 |
| 0.32 |
| (0.25) |
| (0.25) |
| 10.61 |
|
2019 |
9.96 |
| 0.24 |
| 0.63 |
| 0.87 |
| (0.29) |
| (0.29) |
| 10.54 |
|
R-1
shares |
|
|
|
|
|
| |
2023 |
8.64 |
| 0.16 |
| (0.34) |
| (0.18) |
| (0.19) |
| (0.19) |
| 8.27 |
|
2022 |
10.34 |
| 0.04 |
| (1.66) |
| (1.62) |
| (0.08) |
| (0.08) |
| 8.64 |
|
2021 |
10.62 |
| (0.02) |
| (0.20) |
| (0.22) |
| (0.06) |
| (0.06) |
| 10.34 |
|
2020 |
10.55 |
| 0.10 |
| 0.14 |
| 0.24 |
| (0.17) |
| (0.17) |
| 10.62 |
|
2019 |
9.96 |
| 0.16 |
| 0.64 |
| 0.80 |
| (0.21) |
| (0.21) |
| 10.55 |
|
R-3
shares |
|
|
|
|
|
| |
2023 |
8.64 |
| 0.19 |
| (0.33) |
| (0.14) |
| (0.22) |
| (0.22) |
| 8.28 |
|
2022 |
10.34 |
| 0.07 |
| (1.66) |
| (1.59) |
| (0.11) |
| (0.11) |
| 8.64 |
|
2021 |
10.62 |
| 0.01 |
| (0.19) |
| (0.18) |
| (0.10) |
| (0.10) |
| 10.34 |
|
2020 |
10.55 |
| 0.14 |
| 0.13 |
| 0.27 |
| (0.20) |
| (0.20) |
| 10.62 |
|
2019 |
9.96 |
| 0.19 |
| 0.64 |
| 0.83 |
| (0.24) |
| (0.24) |
| 10.55 |
|
R-4
shares |
|
|
|
|
|
| |
2023 |
8.64 |
| 0.21 |
| (0.32) |
| (0.11) |
| (0.24) |
| (0.24) |
| 8.29 |
|
2022 |
10.35 |
| 0.09 |
| (1.68) |
| (1.59) |
| (0.12) |
| (0.12) |
| 8.64 |
|
2021 |
10.62 |
| 0.03 |
| (0.18) |
| (0.15) |
| (0.12) |
| (0.12) |
| 10.35 |
|
2020 |
10.55 |
| 0.16 |
| 0.13 |
| 0.29 |
| (0.22) |
| (0.22) |
| 10.62 |
|
2019 |
9.97 |
| 0.21 |
| 0.63 |
| 0.84 |
| (0.26) |
| (0.26) |
| 10.55 |
|
R-5
shares |
|
|
|
|
|
| |
2023 |
8.64 |
| 0.22 |
| (0.32) |
| (0.10) |
| (0.25) |
| (0.25) |
| 8.29 |
|
2022 |
10.35 |
| 0.10 |
| (1.67) |
| (1.57) |
| (0.14) |
| (0.14) |
| 8.64 |
|
2021 |
10.62 |
| 0.05 |
| (0.19) |
| (0.14) |
| (0.13) |
| (0.13) |
| 10.35 |
|
2020 |
10.55 |
| 0.17 |
| 0.14 |
| 0.31 |
| (0.24) |
| (0.24) |
| 10.62 |
|
2019 |
9.97 |
| 0.22 |
| 0.64 |
| 0.86 |
| (0.28) |
| (0.28) |
| 10.55 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average
Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
(1.65) |
% |
(b) |
$145,881 |
| 0.85 |
% |
| – |
% |
| 2.30 |
% |
128.0 |
% |
(15.37) |
| (b) |
172,969 |
| 0.78 |
|
| – |
|
| 0.94 |
| 352.1 |
|
(1.44) |
| (b) |
229,225 |
| 0.77 |
|
| – |
|
| 0.32 |
| 343.7 |
|
2.82 |
| (b) |
263,721 |
| 0.80 |
|
| – |
|
| 1.44 |
| 84.3 |
|
8.53 |
| (b) |
234,134 |
| 0.83 |
|
| 0.87 |
| (c) |
2.01 |
| 23.2 |
|
|
|
|
|
|
|
|
| |
(1.71) |
| (b) |
68,323 |
| 0.91 |
| (d) |
0.93 |
| (c) |
2.24 |
| 128.0 |
|
(15.46) |
| (b) |
77,181 |
| 0.82 |
| (d) |
0.84 |
| (c) |
0.90 |
| 352.1 |
|
(1.47) |
| (b) |
99,128 |
| 0.80 |
| (d) |
0.83 |
| (c) |
0.29 |
| 343.7 |
|
2.79 |
| (b) |
117,748 |
| 0.82 |
| (d) |
0.85 |
| (c) |
1.42 |
| 84.3 |
|
8.45 |
| (b) |
108,140 |
| 0.88 |
| (d) |
0.91 |
| (c) |
1.96 |
| 23.2 |
|
|
|
|
|
|
|
|
| |
(1.22) |
|
| 393,944 |
| 0.53 |
| (e) |
– |
|
| 2.62 |
| 128.0 |
|
(15.22) |
|
| 500,833 |
| 0.52 |
| (e) |
– |
|
| 1.18 |
| 352.1 |
|
(1.19) |
|
| 770,058 |
| 0.52 |
| (e) |
– |
|
| 0.58 |
| 343.7 |
|
3.09 |
|
| 1,083,668 |
| 0.53 |
| (e) |
– |
|
| 1.72 |
| 84.3 |
|
8.84 |
|
| 1,236,943 |
| 0.53 |
| (e) |
– |
|
| 2.31 |
| 23.2 |
|
|
|
|
|
|
|
|
| |
(2.20) |
|
| 515 |
| 1.29 |
| (e) |
– |
|
| 1.83 |
| 128.0 |
|
(15.77) |
|
| 2,393 |
| 1.29 |
| (e) |
– |
|
| 0.44 |
| 352.1 |
|
(2.04) |
|
| 2,797 |
| 1.29 |
| (e) |
– |
|
| (0.19) |
| 343.7 |
|
2.30 |
|
| 5,048 |
| 1.29 |
| (e) |
– |
|
| 0.92 |
| 84.3 |
|
8.12 |
|
| 3,324 |
| 1.29 |
| (e) |
– |
|
| 1.55 |
| 23.2 |
|
|
|
|
|
|
|
|
| |
(1.78) |
|
| 3,034 |
| 0.98 |
| (e) |
– |
|
| 2.17 |
| 128.0 |
|
(15.51) |
|
| 3,656 |
| 0.98 |
| (e) |
– |
|
| 0.73 |
| 352.1 |
|
(1.74) |
|
| 5,493 |
| 0.98 |
| (e) |
– |
|
| 0.11 |
| 343.7 |
|
2.62 |
|
| 8,704 |
| 0.98 |
| (e) |
– |
|
| 1.29 |
| 84.3 |
|
8.45 |
|
| 11,288 |
| 0.98 |
| (e) |
– |
|
| 1.86 |
| 23.2 |
|
|
|
|
|
|
|
|
| |
(1.47) |
|
| 1,948 |
| 0.79 |
| (e) |
– |
|
| 2.36 |
| 128.0 |
|
(15.43) |
|
| 5,283 |
| 0.79 |
| (e) |
– |
|
| 0.93 |
| 352.1 |
|
(1.46) |
|
| 7,522 |
| 0.79 |
| (e) |
– |
|
| 0.31 |
| 343.7 |
|
2.82 |
|
| 6,419 |
| 0.79 |
| (e) |
– |
|
| 1.50 |
| 84.3 |
|
8.55 |
|
| 9,826 |
| 0.79 |
| (e) |
– |
|
| 2.05 |
| 23.2 |
|
|
|
|
|
|
|
|
| |
(1.36) |
|
| 8,534 |
| 0.67 |
| (e) |
– |
|
| 2.48 |
| 128.0 |
|
(15.33) |
|
| 8,761 |
| 0.67 |
| (e) |
– |
|
| 1.02 |
| 352.1 |
|
(1.34) |
|
| 16,336 |
| 0.67 |
| (e) |
– |
|
| 0.43 |
| 343.7 |
|
2.94 |
|
| 24,044 |
| 0.67 |
| (e) |
– |
|
| 1.57 |
| 84.3 |
|
8.67 |
|
| 22,401 |
| 0.67 |
| (e) |
– |
|
| 2.17 |
| 23.2 |
|
(a)Calculated
based on average shares outstanding during the period.
(b)Total
return is calculated without the front-end sales charge or contingent deferred
sales charge, if applicable.
(c)Excludes
expense reimbursement from Manager and/or Distributor.
(d)Reflects
Manager's contractual expense limit.
(e)Reflects
Manager's contractual expense limit and/or Distributor's voluntary distribution
fee limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
| |
|
Net
Asset
Value,
Beginning
of
Period |
Net
Investment
Income
(Loss)(a) |
Net
Realized
and
Unrealized
Gain
(Loss) on
Investments |
Total
From
Investment
Operations |
Dividends
from
Net
Investment Income |
Total
Dividends and
Distributions |
Net
Asset
Value,
End
of Period |
GOVERNMENT
MONEY
MARKET
FUND |
|
|
|
| |
Institutional
shares |
|
|
|
|
|
| |
2023 |
$1.00 |
| $0.04 |
| $0.01 |
| $0.05 |
| ($0.05) |
| ($0.05) |
| $1.00 |
|
2022 |
1.00 |
| 0.01 |
| – |
| 0.01 |
| (0.01) |
| (0.01) |
| 1.00 |
|
2021 |
1.00 |
| – |
| – |
| – |
| – |
| – |
| 1.00 |
|
2020 |
1.00 |
| 0.01 |
| – |
| 0.01 |
| (0.01) |
| (0.01) |
| 1.00 |
|
2019 |
1.00 |
| 0.02 |
| – |
| 0.02 |
| (0.02) |
| (0.02) |
| 1.00 |
|
R-6
shares |
|
|
|
|
|
| |
2023(e) |
1.00 |
| 0.04 |
| – |
| 0.04 |
| (0.04) |
| (0.04) |
| 1.00 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Gross Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
4.71 |
% |
| $191,888 |
| 0.15 |
% |
(b) |
0.16 |
% |
(c) |
3.71 |
% |
|
0.81 |
|
| 2,979,627 |
| 0.14 |
| (b) |
0.15 |
| (c) |
0.73 |
| |
0.00 |
|
| 3,657,679 |
| 0.04 |
| (b) |
0.16 |
| (c) |
0.00 |
| |
0.60 |
|
| 3,077,863 |
| 0.12 |
| (b) |
0.16 |
| (c) |
0.60 |
| |
2.17 |
|
| 3,972,463 |
| 0.14 |
| (d) |
– |
|
| 2.13 |
| |
|
|
|
|
|
|
|
| |
4.35 |
| (f) |
2,582,939 |
| 0.14 |
| (b),(g) |
0.16 |
| (c),(g) |
4.80 |
| (g) |
(a)Calculated
based on average shares outstanding during the period.
(b)Reflects
Manager's contractual and/or voluntary expense limit.
(c)Excludes
expense reimbursement from Manager.
(d)Reflects
Manager's contractual expense limit.
(e)Period
from December 12, 2022, date operations commenced, through October 31,
2023.
(f)Total
return amounts have not been annualized.
(g)Computed
on an annualized basis.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
| |
|
Net
Asset
Value,
Beginning
of
Period |
Net
Investment
Income
(Loss)(a) |
Net
Realized
and
Unrealized
Gain
(Loss) on
Investments |
Total
From
Investment
Operations |
Dividends
from
Net
Investment Income |
Total
Dividends and
Distributions |
Net
Asset
Value,
End
of Period |
HIGH
INCOME FUND |
|
|
|
|
|
| |
Institutional
shares |
|
|
|
|
|
| |
2023 |
$7.86 |
| $0.54 |
| ($0.07) |
| $0.47 |
| ($0.59) |
| ($0.59) |
| $7.74 |
|
2022 |
9.36 |
| 0.45 |
| (1.47) |
| (1.02) |
| (0.48) |
| (0.48) |
| 7.86 |
|
2021 |
9.00 |
| 0.47 |
| 0.38 |
| 0.85 |
| (0.49) |
| (0.49) |
| 9.36 |
|
2020 |
9.30 |
| 0.54 |
| (0.29) |
| 0.25 |
| (0.55) |
| (0.55) |
| 9.00 |
|
2019 |
9.45 |
| 0.60 |
| (0.13) |
| 0.47 |
| (0.62) |
| (0.62) |
| 9.30 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
| |
|
|
|
|
|
| |
5.89 |
% |
(b) |
$3,159,560 |
| 0.61 |
% |
(c) |
6.81 |
% |
35.0 |
% |
(10.90) |
| (b) |
3,079,579 |
| 0.60 |
| (c) |
5.27 |
| 48.1 |
|
9.45 |
| (b) |
3,720,936 |
| 0.60 |
| (c) |
4.99 |
| 62.8 |
|
2.85 |
| (b) |
3,020,358 |
| 0.61 |
| (c) |
6.04 |
| 73.8 |
|
5.22 |
| (b) |
3,112,267 |
| 0.61 |
| (c) |
6.42 |
| 56.5 |
|
(a)Calculated
based on average shares outstanding during the period.
(b)Total
return is calculated without the front-end sales charge or contingent deferred
sales charge, if applicable.
(c)Total
return is calculated using the traded net asset value which may differ from the
reported net asset value. The traded net asset value is the net asset value
which a shareholder would have paid or received from a subscription or
redemption.
(d)Reflects
Manager's contractual expense limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
| |
|
Net
Asset
Value,
Beginning
of
Period |
Net
Investment
Income
(Loss)(a) |
Net
Realized
and
Unrealized
Gain
(Loss) on
Investments |
Total
From
Investment
Operations |
Dividends
from
Net
Investment Income |
Total
Dividends and
Distributions |
Net
Asset
Value,
End
of Period |
HIGH
YIELD FUND |
|
|
|
|
|
| |
Class
A shares |
|
|
|
|
|
| |
2023 |
$6.29 |
| $0.37 |
| $0.03 |
| $0.40 |
| ($0.38) |
| ($0.38) |
| $6.31 |
|
2022 |
7.33 |
| 0.32 |
| (1.02) |
| (0.70) |
| (0.34) |
| (0.34) |
| 6.29 |
|
2021 |
7.01 |
| 0.32 |
| 0.35 |
| 0.67 |
| (0.35) |
| (0.35) |
| 7.33 |
|
2020 |
7.15 |
| 0.36 |
| (0.13) |
| 0.23 |
| (0.37) |
| (0.37) |
| 7.01 |
|
2019 |
7.11 |
| 0.38 |
| 0.06 |
| 0.44 |
| (0.40) |
| (0.40) |
| 7.15 |
|
Class
C
shares |
|
|
|
|
|
| |
2023 |
6.38 |
| 0.32 |
| 0.02 |
| 0.34 |
| (0.32) |
| (0.32) |
| 6.40 |
|
2022 |
7.43 |
| 0.27 |
| (1.03) |
| (0.76) |
| (0.29) |
| (0.29) |
| 6.38 |
|
2021 |
7.10 |
| 0.28 |
| 0.34 |
| 0.62 |
| (0.29) |
| (0.29) |
| 7.43 |
|
2020 |
7.23 |
| 0.32 |
| (0.13) |
| 0.19 |
| (0.32) |
| (0.32) |
| 7.10 |
|
2019 |
7.19 |
| 0.34 |
| 0.05 |
| 0.39 |
| (0.35) |
| (0.35) |
| 7.23 |
|
Institutional
shares |
|
|
|
|
|
| |
2023 |
6.24 |
| 0.39 |
| 0.02 |
| 0.41 |
| (0.40) |
| (0.40) |
| 6.25 |
|
2022 |
7.27 |
| 0.34 |
| (1.01) |
| (0.67) |
| (0.36) |
| (0.36) |
| 6.24 |
|
2021 |
6.96 |
| 0.34 |
| 0.34 |
| 0.68 |
| (0.37) |
| (0.37) |
| 7.27 |
|
2020 |
7.10 |
| 0.38 |
| (0.13) |
| 0.25 |
| (0.39) |
| (0.39) |
| 6.96 |
|
2019 |
7.06 |
| 0.40 |
| 0.06 |
| 0.46 |
| (0.42) |
| (0.42) |
| 7.10 |
|
R-6
shares |
|
|
|
|
|
| |
2023 |
6.24 |
| 0.39 |
| 0.02 |
| 0.41 |
| (0.40) |
| (0.40) |
| 6.25 |
|
2022 |
7.27 |
| 0.35 |
| (1.01) |
| (0.66) |
| (0.37) |
| (0.37) |
| 6.24 |
|
2021 |
6.96 |
| 0.35 |
| 0.34 |
| 0.69 |
| (0.38) |
| (0.38) |
| 7.27 |
|
2020 |
7.10 |
| 0.38 |
| (0.12) |
| 0.26 |
| (0.40) |
| (0.40) |
| 6.96 |
|
2019 |
7.06 |
| 0.41 |
| 0.06 |
| 0.47 |
| (0.43) |
| (0.43) |
| 7.10 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
| |
|
|
|
|
|
| |
6.31 |
% |
(b) |
$414,017 |
| 0.94 |
% |
| 5.70 |
% |
28.0 |
% |
(9.71) |
| (b) |
426,999 |
| 0.91 |
|
| 4.74 |
| 33.1 |
|
9.64 |
| (b) |
539,969 |
| 0.91 |
|
| 4.44 |
| 63.0 |
|
3.39 |
| (b) |
513,993 |
| 0.91 |
|
| 5.22 |
| 77.7 |
|
6.36 |
| (b) |
615,367 |
| 0.94 |
|
| 5.40 |
| 49.8 |
|
|
|
|
|
|
| |
5.37 |
| (b) |
29,469 |
| 1.75 |
|
| 4.88 |
| 28.0 |
|
(10.42) |
| (b) |
39,928 |
| 1.69 |
|
| 3.94 |
| 33.1 |
|
8.87 |
| (b) |
62,973 |
| 1.64 |
|
| 3.74 |
| 63.0 |
|
2.74 |
| (b) |
118,320 |
| 1.65 |
|
| 4.51 |
| 77.7 |
|
5.52 |
| (b) |
170,730 |
| 1.67 |
|
| 4.72 |
| 49.8 |
|
|
|
|
|
|
| |
6.55 |
|
| 1,183,194 |
| 0.61 |
| (c) |
6.03 |
| 28.0 |
|
(9.50) |
| (d) |
1,140,046 |
| 0.61 |
| (c) |
5.04 |
| 33.1 |
|
10.05 |
| (d) |
1,535,963 |
| 0.61 |
| (c) |
4.73 |
| 63.0 |
|
3.73 |
|
| 1,379,657 |
| 0.61 |
| (c) |
5.51 |
| 77.7 |
|
6.76 |
|
| 1,496,764 |
| 0.61 |
| (c) |
5.75 |
| 49.8 |
|
|
|
|
|
|
| |
6.64 |
|
| 687,216 |
| 0.53 |
|
| 6.13 |
| 28.0 |
|
(9.42) |
| (d) |
557,144 |
| 0.52 |
|
| 5.12 |
| 33.1 |
|
10.15 |
| (d) |
757,781 |
| 0.52 |
| (c) |
4.84 |
| 63.0 |
|
3.82 |
|
| 971,122 |
| 0.52 |
| (c) |
5.57 |
| 77.7 |
|
6.86 |
|
| 688,121 |
| 0.52 |
| (c) |
5.81 |
| 49.8 |
|
(a)Calculated
based on average shares outstanding during the period.
(b)Total
return is calculated without the front-end sales charge or contingent deferred
sales charge, if applicable.
(c)Reflects
Manager's contractual expense limit.
(d)Total
return is calculated using the traded net asset value which may differ from the
reported net asset value. The traded net asset value is the net asset value
which a shareholder would have paid or received from a subscription or
redemption.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock outstanding throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
INFLATION
PROTECTION FUND |
|
|
|
|
|
| |
Class
J shares |
|
|
|
|
|
|
| |
2023 |
$7.63 |
| $0.25 |
| ($0.33) |
| ($0.08) |
| ($0.46) |
| $– |
| ($0.46) |
| $7.09 |
|
2022 |
9.31 |
| 0.53 |
| (1.56) |
| (1.03) |
| (0.36) |
| (0.29) |
| (0.65) |
| 7.63 |
|
2021 |
8.83 |
| 0.28 |
| 0.24 |
| 0.52 |
| (0.04) |
| – |
| (0.04) |
| 9.31 |
|
2020 |
8.22 |
| 0.05 |
| 0.62 |
| 0.67 |
| (0.06) |
| – |
| (0.06) |
| 8.83 |
|
2019 |
7.96 |
| 0.08 |
| 0.49 |
| 0.57 |
| (0.31) |
| – |
| (0.31) |
| 8.22 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
8.09 |
| 0.30 |
| (0.36) |
| (0.06) |
| (0.49) |
| – |
| (0.49) |
| 7.54 |
|
2022 |
9.83 |
| 0.56 |
| (1.62) |
| (1.06) |
| (0.39) |
| (0.29) |
| (0.68) |
| 8.09 |
|
2021 |
9.29 |
| 0.29 |
| 0.30 |
| 0.59 |
| (0.05) |
| – |
| (0.05) |
| 9.83 |
|
2020 |
8.63 |
| 0.10 |
| 0.66 |
| 0.76 |
| (0.10) |
| – |
| (0.10) |
| 9.29 |
|
2019 |
8.33 |
| 0.15 |
| 0.51 |
| 0.66 |
| (0.36) |
| – |
| (0.36) |
| 8.63 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
7.44 |
| 0.21 |
| (0.33) |
| (0.12) |
| (0.39) |
| – |
| (0.39) |
| 6.93 |
|
2022 |
9.10 |
| 0.49 |
| (1.55) |
| (1.06) |
| (0.31) |
| (0.29) |
| (0.60) |
| 7.44 |
|
2021 |
8.65 |
| 0.21 |
| 0.26 |
| 0.47 |
| (0.02) |
| – |
| (0.02) |
| 9.10 |
|
2020 |
8.06 |
| 0.02 |
| 0.62 |
| 0.64 |
| (0.05) |
| – |
| (0.05) |
| 8.65 |
|
2019 |
7.81 |
| 0.08 |
| 0.47 |
| 0.55 |
| (0.30) |
| – |
| (0.30) |
| 8.06 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
7.67 |
| 0.22 |
| (0.31) |
| (0.09) |
| (0.45) |
| – |
| (0.45) |
| 7.13 |
|
2022 |
9.34 |
| 0.50 |
| (1.55) |
| (1.05) |
| (0.33) |
| (0.29) |
| (0.62) |
| 7.67 |
|
2021 |
8.86 |
| 0.25 |
| 0.26 |
| 0.51 |
| (0.03) |
| – |
| (0.03) |
| 9.34 |
|
2020 |
8.25 |
| 0.05 |
| 0.62 |
| 0.67 |
| (0.06) |
| – |
| (0.06) |
| 8.86 |
|
2019 |
7.98 |
| 0.10 |
| 0.49 |
| 0.59 |
| (0.32) |
| – |
| (0.32) |
| 8.25 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
7.78 |
| 0.26 |
| (0.34) |
| (0.08) |
| (0.45) |
| – |
| (0.45) |
| 7.25 |
|
2022 |
9.50 |
| 0.53 |
| (1.59) |
| (1.06) |
| (0.37) |
| (0.29) |
| (0.66) |
| 7.78 |
|
2021 |
8.99 |
| 0.20 |
| 0.35 |
| 0.55 |
| (0.04) |
| – |
| (0.04) |
| 9.50 |
|
2020 |
8.37 |
| 0.06 |
| 0.63 |
| 0.69 |
| (0.07) |
| – |
| (0.07) |
| 8.99 |
|
2019 |
8.09 |
| 0.12 |
| 0.49 |
| 0.61 |
| (0.33) |
| – |
| (0.33) |
| 8.37 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
7.90 |
| 0.27 |
| (0.35) |
| (0.08) |
| (0.47) |
| – |
| (0.47) |
| 7.35 |
|
2022 |
9.62 |
| 0.54 |
| (1.60) |
| (1.06) |
| (0.37) |
| (0.29) |
| (0.66) |
| 7.90 |
|
2021 |
9.10 |
| 0.29 |
| 0.27 |
| 0.56 |
| (0.04) |
| – |
| (0.04) |
| 9.62 |
|
2020 |
8.46 |
| 0.07 |
| 0.65 |
| 0.72 |
| (0.08) |
| – |
| (0.08) |
| 9.10 |
|
2019 |
8.18 |
| 0.12 |
| 0.50 |
| 0.62 |
| (0.34) |
| – |
| (0.34) |
| 8.46 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average
Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
(1.18) |
% |
(b) |
$13,956 |
| 0.78 |
% |
(c) |
0.80 |
% |
(d) |
3.37 |
% |
106.3 |
% |
(11.90) |
| (b) |
18,034 |
| 0.73 |
| (c) |
0.75 |
| (d) |
6.29 |
| 108.3 |
|
5.85 |
| (b) |
16,550 |
| 0.85 |
| (c) |
0.87 |
| (d) |
3.04 |
| 67.7 |
|
8.15 |
| (b) |
9,826 |
| 1.03 |
| (c) |
1.06 |
| (d) |
0.55 |
| 80.9 |
|
7.37 |
| (b) |
6,177 |
| 1.18 |
| (c) |
1.27 |
| (d) |
1.00 |
| 68.4 |
|
|
|
|
|
|
|
|
| |
(0.86) |
|
| 1,447,786 |
| 0.40 |
|
| – |
|
| 3.78 |
| 106.3 |
|
(11.61) |
|
| 1,616,313 |
| 0.39 |
|
| – |
|
| 6.34 |
| 108.3 |
|
6.33 |
|
| 1,471,415 |
| 0.39 |
|
| – |
|
| 3.03 |
| 67.7 |
|
8.83 |
|
| 1,745,470 |
| 0.39 |
|
| – |
|
| 1.11 |
| 80.9 |
|
8.15 |
|
| 1,720,548 |
| 0.39 |
|
| – |
|
| 1.82 |
| 68.4 |
|
|
|
|
|
|
|
|
| |
(1.70) |
|
| 670 |
| 1.27 |
|
| – |
|
| 2.94 |
| 106.3 |
|
(12.36) |
| (e) |
663 |
| 1.27 |
|
| – |
|
| 5.92 |
| 108.3 |
|
5.37 |
| (e) |
1,258 |
| 1.27 |
|
| – |
|
| 2.33 |
| 67.7 |
|
7.93 |
|
| 1,427 |
| 1.26 |
|
| – |
|
| 0.22 |
| 80.9 |
|
7.29 |
|
| 1,009 |
| 1.27 |
|
| – |
|
| 0.96 |
| 68.4 |
|
|
|
|
|
|
|
|
| |
(1.31) |
|
| 4,708 |
| 0.96 |
|
| – |
|
| 3.00 |
| 106.3 |
|
(12.09) |
|
| 6,749 |
| 0.96 |
|
| – |
|
| 5.90 |
| 108.3 |
|
5.80 |
|
| 7,120 |
| 0.96 |
|
| – |
|
| 2.76 |
| 67.7 |
|
8.17 |
|
| 8,491 |
| 0.95 |
|
| – |
|
| 0.58 |
| 80.9 |
|
7.64 |
|
| 6,836 |
| 0.96 |
|
| – |
|
| 1.22 |
| 68.4 |
|
|
|
|
|
|
|
|
| |
(1.10) |
|
| 1,360 |
| 0.77 |
|
| – |
|
| 3.43 |
| 106.3 |
|
(11.95) |
|
| 4,051 |
| 0.77 |
|
| – |
|
| 6.17 |
| 108.3 |
|
6.09 |
|
| 5,912 |
| 0.77 |
|
| – |
|
| 2.17 |
| 67.7 |
|
8.32 |
|
| 1,780 |
| 0.76 |
|
| – |
|
| 0.70 |
| 80.9 |
|
7.82 |
|
| 1,327 |
| 0.77 |
|
| – |
|
| 1.49 |
| 68.4 |
|
|
|
|
|
|
|
|
| |
(1.14) |
|
| 3,492 |
| 0.65 |
|
| – |
|
| 3.48 |
| 106.3 |
|
(11.83) |
|
| 4,251 |
| 0.65 |
|
| – |
|
| 6.26 |
| 108.3 |
|
6.16 |
|
| 4,114 |
| 0.65 |
|
| – |
|
| 3.06 |
| 67.7 |
|
8.56 |
|
| 4,592 |
| 0.64 |
|
| – |
|
| 0.82 |
| 80.9 |
|
7.82 |
|
| 2,679 |
| 0.65 |
|
| – |
|
| 1.43 |
| 68.4 |
|
(a)Calculated
based on average shares outstanding during the period.
(b)Total
return is calculated without the front-end sales charge or contingent deferred
sales charge, if applicable.
(c)Reflects
Manager's contractual expense limit.
(d)Reflects
Manager's contractual expense limit and/or Distributor's voluntary distribution
fee limit.
(e)Excludes
expense reimbursement from Manager and/or Distributor.
(f)Total
return is calculated using the traded net asset value which may differ from the
reported net asset value. The traded net asset value is the net asset value
which a shareholder would have paid or received from a subscription or
redemption.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
INTERNATIONAL
FUND I |
|
|
|
|
|
|
| |
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
$11.24 |
| $0.38 |
| $0.74 |
| $1.12 |
| ($0.35) |
| $– |
| ($0.35) |
| $12.01 |
|
2022 |
18.41 |
| 0.41 |
| (5.23) |
| (4.82) |
| (0.41) |
| (1.94) |
| (2.35) |
| 11.24 |
|
2021 |
15.19 |
| 0.44 |
| 3.88 |
| 4.32 |
| (0.21) |
| (0.89) |
| (1.10) |
| 18.41 |
|
2020 |
14.94 |
| 0.22 |
| 0.41 |
| 0.63 |
| (0.38) |
| – |
| (0.38) |
| 15.19 |
|
2019 |
14.17 |
| 0.33 |
| 1.42 |
| 1.75 |
| (0.32) |
| (0.66) |
| (0.98) |
| 14.94 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
11.18 |
| 0.27 |
| 0.75 |
| 1.02 |
| (0.25) |
| – |
| (0.25) |
| 11.95 |
|
2022 |
18.31 |
| 0.30 |
| (5.22) |
| (4.92) |
| (0.27) |
| (1.94) |
| (2.21) |
| 11.18 |
|
2021 |
15.11 |
| 0.29 |
| 3.89 |
| 4.18 |
| (0.09) |
| (0.89) |
| (0.98) |
| 18.31 |
|
2020 |
14.85 |
| 0.10 |
| 0.40 |
| 0.50 |
| (0.24) |
| – |
| (0.24) |
| 15.11 |
|
2019 |
14.06 |
| 0.22 |
| 1.42 |
| 1.64 |
| (0.19) |
| (0.66) |
| (0.85) |
| 14.85 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
11.21 |
| 0.31 |
| 0.75 |
| 1.06 |
| (0.28) |
| – |
| (0.28) |
| 11.99 |
|
2022 |
18.35 |
| 0.34 |
| (5.22) |
| (4.88) |
| (0.32) |
| (1.94) |
| (2.26) |
| 11.21 |
|
2021 |
15.15 |
| 0.38 |
| 3.85 |
| 4.23 |
| (0.14) |
| (0.89) |
| (1.03) |
| 18.35 |
|
2020 |
14.89 |
| 0.14 |
| 0.42 |
| 0.56 |
| (0.30) |
| – |
| (0.30) |
| 15.15 |
|
2019 |
14.11 |
| 0.24 |
| 1.44 |
| 1.68 |
| (0.24) |
| (0.66) |
| (0.90) |
| 14.89 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
11.24 |
| 0.27 |
| 0.82 |
| 1.09 |
| (0.32) |
| – |
| (0.32) |
| 12.01 |
|
2022 |
18.40 |
| 0.37 |
| (5.24) |
| (4.87) |
| (0.35) |
| (1.94) |
| (2.29) |
| 11.24 |
|
2021 |
15.17 |
| 0.38 |
| 3.90 |
| 4.28 |
| (0.16) |
| (0.89) |
| (1.05) |
| 18.40 |
|
2020 |
14.90 |
| 0.18 |
| 0.40 |
| 0.58 |
| (0.31) |
| – |
| (0.31) |
| 15.17 |
|
2019 |
14.14 |
| 0.30 |
| 1.41 |
| 1.71 |
| (0.29) |
| (0.66) |
| (0.95) |
| 14.90 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
11.26 |
| 0.40 |
| 0.70 |
| 1.10 |
| (0.34) |
| – |
| (0.34) |
| 12.02 |
|
2022 |
18.39 |
| 0.38 |
| (5.23) |
| (4.85) |
| (0.34) |
| (1.94) |
| (2.28) |
| 11.26 |
|
2021 |
15.17 |
| 0.40 |
| 3.90 |
| 4.30 |
| (0.19) |
| (0.89) |
| (1.08) |
| 18.39 |
|
2020 |
14.91 |
| 0.19 |
| 0.40 |
| 0.59 |
| (0.33) |
| – |
| (0.33) |
| 15.17 |
|
2019 |
14.12 |
| 0.31 |
| 1.42 |
| 1.73 |
| (0.28) |
| (0.66) |
| (0.94) |
| 14.91 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
11.25 |
| 0.39 |
| 0.74 |
| 1.13 |
| (0.37) |
| – |
| (0.37) |
| 12.01 |
|
2022 |
18.41 |
| 0.42 |
| (5.22) |
| (4.80) |
| (0.42) |
| (1.94) |
| (2.36) |
| 11.25 |
|
2021 |
15.19 |
| 0.45 |
| 3.89 |
| 4.34 |
| (0.23) |
| (0.89) |
| (1.12) |
| 18.41 |
|
2020 |
14.94 |
| 0.23 |
| 0.41 |
| 0.64 |
| (0.39) |
| – |
| (0.39) |
| 15.19 |
|
2019 |
14.17 |
| 0.36 |
| 1.40 |
| 1.76 |
| (0.33) |
| (0.66) |
| (0.99) |
| 14.94 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
Total
Return |
| Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
| |
|
|
|
|
|
| |
10.06 |
% |
| $88,447 |
| 0.92 |
% |
(b),(c) |
2.98 |
% |
65.8 |
% |
(29.86) |
|
| 88,476 |
| 0.87 |
| (b) |
2.93 |
| 60.5 |
|
29.33 |
|
| 133,135 |
| 0.90 |
| (b) |
2.43 |
| 55.0 |
|
4.14 |
|
| 100,695 |
| 0.90 |
| (b) |
1.48 |
| 68.4 |
|
14.09 |
|
| 114,993 |
| 0.92 |
| (b) |
2.38 |
| 71.0 |
|
|
|
|
|
|
| |
9.19 |
|
| 1,049 |
| 1.71 |
| (c) |
2.14 |
| 65.8 |
|
(30.39) |
|
| 944 |
| 1.65 |
|
| 2.14 |
| 60.5 |
|
28.31 |
| (d) |
1,369 |
| 1.67 |
|
| 1.61 |
| 55.0 |
|
3.41 |
| (d) |
1,168 |
| 1.67 |
| (b) |
0.64 |
| 68.4 |
|
13.14 |
|
| 1,701 |
| 1.72 |
| (b) |
1.63 |
| 71.0 |
|
|
|
|
|
|
| |
9.50 |
|
| 969 |
| 1.40 |
| (c) |
2.45 |
| 65.8 |
|
(30.14) |
|
| 1,649 |
| 1.34 |
|
| 2.40 |
| 60.5 |
|
28.72 |
|
| 3,029 |
| 1.36 |
|
| 2.11 |
| 55.0 |
|
3.71 |
|
| 2,167 |
| 1.36 |
| (b) |
0.94 |
| 68.4 |
|
13.44 |
|
| 2,906 |
| 1.41 |
| (b) |
1.77 |
| 71.0 |
|
|
|
|
|
|
| |
9.73 |
|
| 285 |
| 1.21 |
| (c) |
2.19 |
| 65.8 |
|
(30.04) |
|
| 1,867 |
| 1.15 |
|
| 2.65 |
| 60.5 |
|
29.05 |
|
| 2,623 |
| 1.17 |
|
| 2.11 |
| 55.0 |
|
3.85 |
|
| 3,110 |
| 1.17 |
| (b) |
1.24 |
| 68.4 |
|
13.71 |
|
| 3,285 |
| 1.22 |
| (b) |
2.20 |
| 71.0 |
|
|
|
|
|
|
| |
9.81 |
|
| 2,058 |
| 1.09 |
| (c) |
3.09 |
| 65.8 |
|
(29.95) |
|
| 487 |
| 1.03 |
|
| 2.73 |
| 60.5 |
|
29.12 |
| (d) |
755 |
| 1.05 |
|
| 2.21 |
| 55.0 |
|
3.99 |
| (d) |
1,493 |
| 1.05 |
| (b) |
1.32 |
| 68.4 |
|
13.90 |
|
| 1,932 |
| 1.10 |
| (b) |
2.27 |
| 71.0 |
|
|
|
|
|
|
| |
10.09 |
|
| 180,658 |
| 0.82 |
| (b),(c) |
3.09 |
| 65.8 |
|
(29.73) |
|
| 181,468 |
| 0.76 |
| (b) |
3.06 |
| 60.5 |
|
29.47 |
|
| 204,338 |
| 0.79 |
| (b) |
2.51 |
| 55.0 |
|
4.22 |
|
| 173,218 |
| 0.79 |
| (b) |
1.58 |
| 68.4 |
|
14.19 |
|
| 215,444 |
| 0.82 |
| (b) |
2.57 |
| 71.0 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit.
(d)Includes
0.13%
of
expenses
associated
with
the
reclaim
of
foreign
taxes
paid.
The
expense
is
not
subject
to
the
Manager's
contractual
expense
limit.
(e)Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which a shareholder would have paid or received from a subscription or
redemption.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
LARGECAP
GROWTH FUND I |
|
|
|
|
|
|
| |
Class
A shares |
|
|
|
|
|
|
| |
2023 |
$14.20 |
| ($0.05) |
| $2.14 |
| $2.09 |
| $– |
| ($1.52) |
| ($1.52) |
| $14.77 |
|
2022 |
23.75 |
| (0.08) |
| (6.95) |
| (7.03) |
| – |
| (2.52) |
| (2.52) |
| 14.20 |
|
2021 |
18.39 |
| (0.11) |
| 6.91 |
| 6.80 |
| – |
| (1.44) |
| (1.44) |
| 23.75 |
|
2020 |
15.59 |
| (0.07) |
| 4.15 |
| 4.08 |
| – |
| (1.28) |
| (1.28) |
| 18.39 |
|
2019 |
15.08 |
| (0.05) |
| 2.26 |
| 2.21 |
| – |
| (1.70) |
| (1.70) |
| 15.59 |
|
Class
J shares |
|
|
|
|
|
|
| |
2023 |
11.17 |
| (0.02) |
| 1.62 |
| 1.60 |
| – |
| (1.52) |
| (1.52) |
| 11.25 |
|
2022 |
19.22 |
| (0.04) |
| (5.49) |
| (5.53) |
| – |
| (2.52) |
| (2.52) |
| 11.17 |
|
2021 |
15.10 |
| (0.06) |
| 5.62 |
| 5.56 |
| – |
| (1.44) |
| (1.44) |
| 19.22 |
|
2020 |
13.00 |
| (0.03) |
| 3.41 |
| 3.38 |
| – |
| (1.28) |
| (1.28) |
| 15.10 |
|
2019 |
12.86 |
| – |
| 1.85 |
| 1.85 |
| (0.01) |
| (1.70) |
| (1.71) |
| 13.00 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
15.05 |
| (0.01) |
| 2.30 |
| 2.29 |
| – |
| (1.52) |
| (1.52) |
| 15.82 |
|
2022 |
24.95 |
| (0.03) |
| (7.35) |
| (7.38) |
| – |
| (2.52) |
| (2.52) |
| 15.05 |
|
2021 |
19.20 |
| (0.05) |
| 7.24 |
| 7.19 |
| – |
| (1.44) |
| (1.44) |
| 24.95 |
|
2020 |
16.18 |
| (0.02) |
| 4.32 |
| 4.30 |
| – |
| (1.28) |
| (1.28) |
| 19.20 |
|
2019 |
15.55 |
| 0.02 |
| 2.33 |
| 2.35 |
| (0.02) |
| (1.70) |
| (1.72) |
| 16.18 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
11.51 |
| (0.09) |
| 1.66 |
| 1.57 |
| – |
| (1.52) |
| (1.52) |
| 11.56 |
|
2022 |
19.83 |
| (0.14) |
| (5.66) |
| (5.80) |
| – |
| (2.52) |
| (2.52) |
| 11.51 |
|
2021 |
15.64 |
| (0.18) |
| 5.81 |
| 5.63 |
| – |
| (1.44) |
| (1.44) |
| 19.83 |
|
2020 |
13.50 |
| (0.13) |
| 3.55 |
| 3.42 |
| – |
| (1.28) |
| (1.28) |
| 15.64 |
|
2019 |
13.35 |
| (0.08) |
| 1.93 |
| 1.85 |
| – |
| (1.70) |
| (1.70) |
| 13.50 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average
Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
16.90 |
% |
(b),(c) |
$423,684 |
| 1.00 |
% |
(d) |
– |
% |
| (0.37) |
% |
26.5 |
% |
(32.72) |
| (b) |
389,907 |
| 0.96 |
| (d) |
– |
|
| (0.46) |
| 28.4 |
|
38.72 |
| (b) |
632,010 |
| 0.95 |
| (d) |
– |
|
| (0.51) |
| 23.1 |
|
27.86 |
| (b) |
487,128 |
| 0.99 |
| (d) |
– |
|
| (0.43) |
| 33.6 |
|
17.51 |
| (b),(e) |
414,599 |
| 1.00 |
| (d) |
– |
|
| (0.37) |
| 28.1 |
|
|
|
|
|
|
|
|
| |
17.11 |
| (b),(c) |
319,716 |
| 0.80 |
| (f) |
0.84 |
| (g) |
(0.17) |
| 26.5 |
|
(32.65) |
| (b),(e) |
269,806 |
| 0.79 |
| (f) |
0.83 |
| (g) |
(0.29) |
| 28.4 |
|
39.03 |
| (b),(e) |
445,587 |
| 0.78 |
| (f) |
0.82 |
| (g) |
(0.34) |
| 23.1 |
|
28.03 |
| (b) |
331,514 |
| 0.80 |
| (f) |
0.85 |
| (g) |
(0.23) |
| 33.6 |
|
17.85 |
| (b) |
274,328 |
| 0.82 |
| (f) |
0.87 |
| (g) |
(0.01) |
| 28.1 |
|
|
|
|
|
|
|
|
| |
17.31 |
| (c) |
2,516,629 |
| 0.68 |
| (d) |
– |
|
| (0.05) |
| 26.5 |
|
(32.53) |
|
| 2,371,763 |
| 0.68 |
| (d) |
– |
|
| (0.18) |
| 28.4 |
|
39.14 |
|
| 3,460,761 |
| 0.67 |
| (d) |
– |
|
| (0.23) |
| 23.1 |
|
28.23 |
|
| 2,630,670 |
| 0.68 |
| (d) |
– |
|
| (0.11) |
| 33.6 |
|
18.02 |
|
| 2,366,040 |
| 0.68 |
| (d) |
– |
|
| 0.15 |
| 28.1 |
|
|
|
|
|
|
|
|
| |
16.26 |
| (c) |
9,023 |
| 1.47 |
| (d) |
– |
|
| (0.84) |
| 26.5 |
|
(33.05) |
| (e) |
8,728 |
| 1.47 |
| (d) |
– |
|
| (0.97) |
| 28.4 |
|
38.07 |
| (e) |
14,313 |
| 1.46 |
| (d) |
– |
|
| (1.02) |
| 23.1 |
|
27.22 |
|
| 11,345 |
| 1.47 |
| (d) |
– |
|
| (0.90) |
| 33.6 |
|
17.12 |
|
| 10,940 |
| 1.47 |
| (d) |
– |
|
| (0.64) |
| 28.1 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)During
the
fiscal
year
ending
October
31,
2023,
the
Fund
experienced
a
one-time
gain
of
approximately
$0.03/share
as
a
result
of a
reimbursement
by
a
service
provider.
If
such
gain
had
not
been
recognized,
the
total
return
amounts
expressed
herein
would
have
been
lower.
(d)Reflects
Manager's
contractual
expense
limit.
(e)Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which a shareholder would have paid or received from a subscription or
redemption.
(f)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(g)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
LARGECAP
GROWTH FUND I |
|
|
|
|
|
|
| |
R-3
shares |
|
|
|
|
|
|
| |
2023 |
$12.80 |
| ($0.07) |
| $1.90 |
| $1.83 |
| $– |
| ($1.52) |
| ($1.52) |
| $13.11 |
|
2022 |
21.70 |
| (0.10) |
| (6.28) |
| (6.38) |
| – |
| (2.52) |
| (2.52) |
| 12.80 |
|
2021 |
16.94 |
| (0.14) |
| 6.34 |
| 6.20 |
| – |
| (1.44) |
| (1.44) |
| 21.70 |
|
2020 |
14.48 |
| (0.09) |
| 3.83 |
| 3.74 |
| – |
| (1.28) |
| (1.28) |
| 16.94 |
|
2019 |
14.15 |
| (0.04) |
| 2.07 |
| 2.03 |
| – |
| (1.70) |
| (1.70) |
| 14.48 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
13.30 |
| (0.04) |
| 1.98 |
| 1.94 |
| – |
| (1.52) |
| (1.52) |
| 13.72 |
|
2022 |
22.41 |
| (0.08) |
| (6.51) |
| (6.59) |
| – |
| (2.52) |
| (2.52) |
| 13.30 |
|
2021 |
17.42 |
| (0.10) |
| 6.53 |
| 6.43 |
| – |
| (1.44) |
| (1.44) |
| 22.41 |
|
2020 |
14.83 |
| (0.06) |
| 3.93 |
| 3.87 |
| – |
| (1.28) |
| (1.28) |
| 17.42 |
|
2019 |
14.42 |
| (0.02) |
| 2.13 |
| 2.11 |
| – |
| (1.70) |
| (1.70) |
| 14.83 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
14.15 |
| (0.03) |
| 2.13 |
| 2.10 |
| – |
| (1.52) |
| (1.52) |
| 14.73 |
|
2022 |
23.65 |
| (0.06) |
| (6.92) |
| (6.98) |
| – |
| (2.52) |
| (2.52) |
| 14.15 |
|
2021 |
18.29 |
| (0.08) |
| 6.88 |
| 6.80 |
| – |
| (1.44) |
| (1.44) |
| 23.65 |
|
2020 |
15.50 |
| (0.04) |
| 4.11 |
| 4.07 |
| – |
| (1.28) |
| (1.28) |
| 18.29 |
|
2019 |
14.98 |
| – |
| 2.22 |
| 2.22 |
| – |
| (1.70) |
| (1.70) |
| 15.50 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
15.07 |
| 0.01 |
| 2.29 |
| 2.30 |
| – |
| (1.52) |
| (1.52) |
| 15.85 |
|
2022 |
24.96 |
| (0.02) |
| (7.35) |
| (7.37) |
| – |
| (2.52) |
| (2.52) |
| 15.07 |
|
2021 |
19.19 |
| (0.03) |
| 7.25 |
| 7.22 |
| – |
| (1.45) |
| (1.45) |
| 24.96 |
|
2020 |
16.17 |
| – |
| 4.32 |
| 4.32 |
| (0.03) |
| (1.27) |
| (1.30) |
| 19.19 |
|
2019 |
15.55 |
| 0.04 |
| 2.31 |
| 2.35 |
| (0.03) |
| (1.70) |
| (1.73) |
| 16.17 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
| |
|
|
|
|
|
| |
16.69 |
% |
(b) |
$63,841 |
| 1.16 |
% |
(c) |
(0.53) |
% |
26.5 |
% |
(32.85) |
| (d) |
58,977 |
| 1.16 |
| (c) |
(0.66) |
| 28.4 |
|
38.54 |
| (d) |
102,793 |
| 1.15 |
| (c) |
(0.71) |
| 23.1 |
|
27.61 |
|
| 89,315 |
| 1.16 |
| (c) |
(0.58) |
| 33.6 |
|
17.46 |
|
| 85,393 |
| 1.16 |
| (c) |
(0.31) |
| 28.1 |
|
|
|
|
|
|
| |
16.93 |
| (b) |
46,894 |
| 0.97 |
| (c) |
(0.33) |
| 26.5 |
|
(32.71) |
|
| 47,601 |
| 0.97 |
| (c) |
(0.47) |
| 28.4 |
|
38.75 |
|
| 84,797 |
| 0.96 |
| (c) |
(0.51) |
| 23.1 |
|
27.86 |
|
| 82,907 |
| 0.97 |
| (c) |
(0.39) |
| 33.6 |
|
17.71 |
|
| 80,284 |
| 0.97 |
| (c) |
(0.14) |
| 28.1 |
|
|
|
|
|
|
| |
17.04 |
| (b) |
148,543 |
| 0.85 |
| (c) |
(0.21) |
| 26.5 |
|
(32.64) |
|
| 158,035 |
| 0.85 |
| (c) |
(0.35) |
| 28.4 |
|
38.94 |
|
| 364,553 |
| 0.84 |
| (c) |
(0.40) |
| 23.1 |
|
28.04 |
| (d) |
296,527 |
| 0.85 |
| (c) |
(0.27) |
| 33.6 |
|
17.72 |
| (d) |
293,297 |
| 0.85 |
| (c) |
(0.01) |
| 28.1 |
|
|
|
|
|
|
| |
17.36 |
| (b) |
6,955,555 |
| 0.59 |
| (c) |
0.04 |
| 26.5 |
|
(32.47) |
|
| 6,257,991 |
| 0.59 |
| (c) |
(0.09) |
| 28.4 |
|
39.24 |
| (d) |
9,740,176 |
| 0.59 |
| (c) |
(0.15) |
| 23.1 |
|
28.42 |
| (d) |
7,254,770 |
| 0.59 |
| (c) |
(0.02) |
| 33.6 |
|
18.06 |
|
| 6,356,209 |
| 0.59 |
| (c) |
0.24 |
| 28.1 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)During
the
fiscal
year
ending
October
31,
2023,
the
Fund
experienced
a
one-time
gain
of
approximately
$0.03/share
as
a
result
of a
reimbursement
by
a
service
provider.
If
such
gain
had
not
been
recognized,
the
total
return
amounts
expressed
herein
would
have
been
lower.
(c)Reflects
Manager's
contractual
expense
limit.
(d)Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which a shareholder would have paid or received from a subscription or
redemption.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
LARGECAP
S&P 500 INDEX FUND |
|
|
|
|
|
| |
Class
A shares |
|
|
|
|
|
|
| |
2023 |
$19.91 |
| $0.27 |
| $1.59 |
| $1.86 |
| ($0.25) |
| ($0.27) |
| ($0.52) |
| $21.25 |
|
2022 |
26.67 |
| 0.24 |
| (3.75) |
| (3.51) |
| (0.20) |
| (3.05) |
| (3.25) |
| 19.91 |
|
2021 |
20.14 |
| 0.24 |
| 7.88 |
| 8.12 |
| (0.33) |
| (1.26) |
| (1.59) |
| 26.67 |
|
2020 |
19.10 |
| 0.28 |
| 1.46 |
| 1.74 |
| (0.32) |
| (0.38) |
| (0.70) |
| 20.14 |
|
2019 |
17.99 |
| 0.31 |
| 1.92 |
| 2.23 |
| (0.28) |
| (0.84) |
| (1.12) |
| 19.10 |
|
Class
J shares |
|
|
|
|
|
|
| |
2023 |
19.65 |
| 0.29 |
| 1.56 |
| 1.85 |
| (0.26) |
| (0.27) |
| (0.53) |
| 20.97 |
|
2022 |
26.36 |
| 0.25 |
| (3.70) |
| (3.45) |
| (0.21) |
| (3.05) |
| (3.26) |
| 19.65 |
|
2021 |
19.93 |
| 0.25 |
| 7.78 |
| 8.03 |
| (0.34) |
| (1.26) |
| (1.60) |
| 26.36 |
|
2020 |
18.91 |
| 0.29 |
| 1.44 |
| 1.73 |
| (0.33) |
| (0.38) |
| (0.71) |
| 19.93 |
|
2019 |
17.82 |
| 0.32 |
| 1.91 |
| 2.23 |
| (0.30) |
| (0.84) |
| (1.14) |
| 18.91 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
19.94 |
| 0.33 |
| 1.59 |
| 1.92 |
| (0.30) |
| (0.27) |
| (0.57) |
| 21.29 |
|
2022 |
26.70 |
| 0.29 |
| (3.75) |
| (3.46) |
| (0.25) |
| (3.05) |
| (3.30) |
| 19.94 |
|
2021 |
20.16 |
| 0.30 |
| 7.88 |
| 8.18 |
| (0.38) |
| (1.26) |
| (1.64) |
| 26.70 |
|
2020 |
19.12 |
| 0.33 |
| 1.46 |
| 1.79 |
| (0.37) |
| (0.38) |
| (0.75) |
| 20.16 |
|
2019 |
18.01 |
| 0.36 |
| 1.92 |
| 2.28 |
| (0.33) |
| (0.84) |
| (1.17) |
| 19.12 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
19.78 |
| 0.15 |
| 1.59 |
| 1.74 |
| (0.12) |
| (0.27) |
| (0.39) |
| 21.13 |
|
2022 |
26.53 |
| 0.10 |
| (3.75) |
| (3.65) |
| (0.05) |
| (3.05) |
| (3.10) |
| 19.78 |
|
2021 |
20.05 |
| 0.09 |
| 7.85 |
| 7.94 |
| (0.20) |
| (1.26) |
| (1.46) |
| 26.53 |
|
2020 |
19.00 |
| 0.16 |
| 1.45 |
| 1.61 |
| (0.18) |
| (0.38) |
| (0.56) |
| 20.05 |
|
2019 |
17.87 |
| 0.21 |
| 1.93 |
| 2.14 |
| (0.17) |
| (0.84) |
| (1.01) |
| 19.00 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
19.91 |
| 0.21 |
| 1.60 |
| 1.81 |
| (0.17) |
| (0.27) |
| (0.44) |
| 21.28 |
|
2022 |
26.67 |
| 0.17 |
| (3.76) |
| (3.59) |
| (0.12) |
| (3.05) |
| (3.17) |
| 19.91 |
|
2021 |
20.15 |
| 0.17 |
| 7.87 |
| 8.04 |
| (0.26) |
| (1.26) |
| (1.52) |
| 26.67 |
|
2020 |
19.11 |
| 0.22 |
| 1.46 |
| 1.68 |
| (0.26) |
| (0.38) |
| (0.64) |
| 20.15 |
|
2019 |
17.98 |
| 0.26 |
| 1.93 |
| 2.19 |
| (0.22) |
| (0.84) |
| (1.06) |
| 19.11 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
20.02 |
| 0.25 |
| 1.61 |
| 1.86 |
| (0.22) |
| (0.27) |
| (0.49) |
| 21.39 |
|
2022 |
26.78 |
| 0.21 |
| (3.77) |
| (3.56) |
| (0.15) |
| (3.05) |
| (3.20) |
| 20.02 |
|
2021 |
20.23 |
| 0.21 |
| 7.91 |
| 8.12 |
| (0.31) |
| (1.26) |
| (1.57) |
| 26.78 |
|
2020 |
19.19 |
| 0.26 |
| 1.46 |
| 1.72 |
| (0.30) |
| (0.38) |
| (0.68) |
| 20.23 |
|
2019 |
18.05 |
| 0.30 |
| 1.94 |
| 2.24 |
| (0.26) |
| (0.84) |
| (1.10) |
| 19.19 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
20.27 |
| 0.28 |
| 1.63 |
| 1.91 |
| (0.25) |
| (0.27) |
| (0.52) |
| 21.66 |
|
2022 |
27.09 |
| 0.24 |
| (3.82) |
| (3.58) |
| (0.19) |
| (3.05) |
| (3.24) |
| 20.27 |
|
2021 |
20.44 |
| 0.24 |
| 7.99 |
| 8.23 |
| (0.32) |
| (1.26) |
| (1.58) |
| 27.09 |
|
2020 |
19.38 |
| 0.29 |
| 1.47 |
| 1.76 |
| (0.32) |
| (0.38) |
| (0.70) |
| 20.44 |
|
2019 |
18.22 |
| 0.32 |
| 1.96 |
| 2.28 |
| (0.28) |
| (0.84) |
| (1.12) |
| 19.38 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average
Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
9.61 |
% |
(b) |
$616,516 |
| 0.42 |
% |
| – |
% |
| 1.29 |
% |
5.9 |
% |
(14.93) |
| (b) |
544,686 |
| 0.40 |
|
| – |
|
| 1.10 |
| 3.7 |
|
42.29 |
| (b) |
651,354 |
| 0.40 |
|
| – |
|
| 1.00 |
| 3.8 |
|
9.23 |
| (b) |
465,384 |
| 0.42 |
|
| – |
|
| 1.45 |
| 6.0 |
|
13.84 |
| (b) |
435,070 |
| 0.46 |
|
| – |
|
| 1.73 |
| 3.2 |
|
|
|
|
|
|
|
|
| |
9.71 |
| (b) |
892,669 |
| 0.34 |
| (c) |
0.36 |
| (d) |
1.37 |
| 5.9 |
|
(14.87) |
| (b) |
810,657 |
| 0.34 |
| (c) |
0.36 |
| (d) |
1.15 |
| 3.7 |
|
42.31 |
| (b) |
970,126 |
| 0.35 |
| (c) |
0.37 |
| (d) |
1.06 |
| 3.8 |
|
9.29 |
| (b) |
691,249 |
| 0.36 |
| (c) |
0.39 |
| (d) |
1.52 |
| 6.0 |
|
13.95 |
| (b) |
691,045 |
| 0.38 |
| (c) |
0.41 |
| (d) |
1.82 |
| 3.2 |
|
|
|
|
|
|
|
|
| |
9.93 |
|
| 4,143,385 |
| 0.16 |
|
| – |
|
| 1.55 |
| 5.9 |
|
(14.73) |
|
| 3,639,186 |
| 0.16 |
|
| – |
|
| 1.34 |
| 3.7 |
|
42.61 |
|
| 4,069,356 |
| 0.17 |
|
| – |
|
| 1.27 |
| 3.8 |
|
9.51 |
|
| 3,986,295 |
| 0.17 |
|
| – |
|
| 1.71 |
| 6.0 |
|
14.18 |
|
| 4,175,228 |
| 0.17 |
|
| – |
|
| 2.02 |
| 3.2 |
|
|
|
|
|
|
|
|
| |
9.01 |
|
| 11,582 |
| 1.02 |
|
| – |
|
| 0.69 |
| 5.9 |
|
(15.49) |
|
| 11,720 |
| 1.03 |
|
| – |
|
| 0.45 |
| 3.7 |
|
41.38 |
|
| 17,742 |
| 1.03 |
|
| – |
|
| 0.36 |
| 3.8 |
|
8.58 |
|
| 11,726 |
| 1.03 |
|
| – |
|
| 0.85 |
| 6.0 |
|
13.21 |
|
| 14,258 |
| 1.03 |
|
| – |
|
| 1.17 |
| 3.2 |
|
|
|
|
|
|
|
|
| |
9.32 |
|
| 136,914 |
| 0.71 |
|
| – |
|
| 1.00 |
| 5.9 |
|
(15.21) |
|
| 133,978 |
| 0.72 |
|
| – |
|
| 0.77 |
| 3.7 |
|
41.78 |
|
| 192,913 |
| 0.72 |
|
| – |
|
| 0.70 |
| 3.8 |
|
8.92 |
|
| 167,324 |
| 0.72 |
|
| – |
|
| 1.16 |
| 6.0 |
|
13.54 |
|
| 181,254 |
| 0.72 |
|
| – |
|
| 1.48 |
| 3.2 |
|
|
|
|
|
|
|
|
| |
9.55 |
|
| 103,145 |
| 0.52 |
|
| – |
|
| 1.19 |
| 5.9 |
|
(15.06) |
| (e) |
105,613 |
| 0.53 |
|
| – |
|
| 0.96 |
| 3.7 |
|
42.09 |
| (e) |
135,073 |
| 0.53 |
|
| – |
|
| 0.90 |
| 3.8 |
|
9.09 |
|
| 132,402 |
| 0.53 |
|
| – |
|
| 1.35 |
| 6.0 |
|
13.80 |
|
| 142,497 |
| 0.53 |
|
| – |
|
| 1.67 |
| 3.2 |
|
|
|
|
|
|
|
|
| |
9.67 |
|
| 238,426 |
| 0.40 |
|
| – |
|
| 1.31 |
| 5.9 |
|
(14.94) |
|
| 256,634 |
| 0.41 |
|
| – |
|
| 1.08 |
| 3.7 |
|
42.22 |
|
| 327,673 |
| 0.41 |
|
| – |
|
| 0.99 |
| 3.8 |
|
9.21 |
|
| 244,545 |
| 0.41 |
|
| – |
|
| 1.48 |
| 6.0 |
|
13.95 |
|
| 297,495 |
| 0.41 |
|
| – |
|
| 1.80 |
| 3.2 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit.
(d)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(e)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(f)Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which a shareholder would have paid or received from a subscription or
redemption.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
LARGECAP
VALUE FUND III |
|
|
|
|
|
|
| |
Class
J shares |
|
|
|
|
|
|
| |
2023 |
$18.01 |
| $0.22 |
| ($0.29) |
| ($0.07) |
| ($0.24) |
| ($1.43) |
| ($1.67) |
| $16.27 |
|
2022 |
20.70 |
| 0.21 |
| (1.16) |
| (0.95) |
| (0.14) |
| (1.60) |
| (1.74) |
| 18.01 |
|
2021 |
14.67 |
| 0.15 |
| 6.10 |
| 6.25 |
| (0.22) |
| – |
| (0.22) |
| 20.70 |
|
2020 |
16.98 |
| 0.21 |
| (1.47) |
| (1.26) |
| (0.31) |
| (0.74) |
| (1.05) |
| 14.67 |
|
2019 |
16.79 |
| 0.31 |
| 1.42 |
| 1.73 |
| (0.23) |
| (1.31) |
| (1.54) |
| 16.98 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
18.36 |
| 0.28 |
| (0.29) |
| (0.01) |
| (0.29) |
| (1.43) |
| (1.72) |
| 16.63 |
|
2022 |
21.07 |
| 0.26 |
| (1.18) |
| (0.92) |
| (0.19) |
| (1.60) |
| (1.79) |
| 18.36 |
|
2021 |
14.94 |
| 0.21 |
| 6.19 |
| 6.40 |
| (0.27) |
| – |
| (0.27) |
| 21.07 |
|
2020 |
17.27 |
| 0.26 |
| (1.48) |
| (1.22) |
| (0.37) |
| (0.74) |
| (1.11) |
| 14.94 |
|
2019 |
17.05 |
| 0.37 |
| 1.44 |
| 1.81 |
| (0.28) |
| (1.31) |
| (1.59) |
| 17.27 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
18.21 |
| 0.13 |
| (0.29) |
| (0.16) |
| (0.14) |
| (1.43) |
| (1.57) |
| 16.48 |
|
2022 |
20.93 |
| 0.10 |
| (1.18) |
| (1.08) |
| (0.04) |
| (1.60) |
| (1.64) |
| 18.21 |
|
2021 |
14.83 |
| 0.04 |
| 6.17 |
| 6.21 |
| (0.11) |
| – |
| (0.11) |
| 20.93 |
|
2020 |
17.13 |
| 0.13 |
| (1.48) |
| (1.35) |
| (0.21) |
| (0.74) |
| (0.95) |
| 14.83 |
|
2019 |
16.91 |
| 0.23 |
| 1.44 |
| 1.67 |
| (0.14) |
| (1.31) |
| (1.45) |
| 17.13 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
19.36 |
| 0.19 |
| (0.30) |
| (0.11) |
| (0.18) |
| (1.43) |
| (1.61) |
| 17.64 |
|
2022 |
22.13 |
| 0.16 |
| (1.24) |
| (1.08) |
| (0.09) |
| (1.60) |
| (1.69) |
| 19.36 |
|
2021 |
15.67 |
| 0.10 |
| 6.53 |
| 6.63 |
| (0.17) |
| – |
| (0.17) |
| 22.13 |
|
2020 |
18.07 |
| 0.19 |
| (1.58) |
| (1.39) |
| (0.27) |
| (0.74) |
| (1.01) |
| 15.67 |
|
2019 |
17.72 |
| 0.30 |
| 1.52 |
| 1.82 |
| (0.16) |
| (1.31) |
| (1.47) |
| 18.07 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
18.32 |
| 0.21 |
| (0.28) |
| (0.07) |
| (0.22) |
| (1.43) |
| (1.65) |
| 16.60 |
|
2022 |
21.04 |
| 0.19 |
| (1.19) |
| (1.00) |
| (0.12) |
| (1.60) |
| (1.72) |
| 18.32 |
|
2021 |
14.90 |
| 0.14 |
| 6.20 |
| 6.34 |
| (0.20) |
| – |
| (0.20) |
| 21.04 |
|
2020 |
17.23 |
| 0.21 |
| (1.50) |
| (1.29) |
| (0.30) |
| (0.74) |
| (1.04) |
| 14.90 |
|
2019 |
17.01 |
| 0.32 |
| 1.43 |
| 1.75 |
| (0.22) |
| (1.31) |
| (1.53) |
| 17.23 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
18.52 |
| 0.23 |
| (0.28) |
| (0.05) |
| (0.24) |
| (1.43) |
| (1.67) |
| 16.80 |
|
2022 |
21.22 |
| 0.22 |
| (1.20) |
| (0.98) |
| (0.12) |
| (1.60) |
| (1.72) |
| 18.52 |
|
2021 |
15.04 |
| 0.16 |
| 6.25 |
| 6.41 |
| (0.23) |
| – |
| (0.23) |
| 21.22 |
|
2020 |
17.38 |
| 0.23 |
| (1.50) |
| (1.27) |
| (0.33) |
| (0.74) |
| (1.07) |
| 15.04 |
|
2019 |
17.15 |
| 0.34 |
| 1.44 |
| 1.78 |
| (0.24) |
| (1.31) |
| (1.55) |
| 17.38 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average
Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
(0.46) |
% |
(b) |
$76,888 |
| 1.00 |
% |
(c) |
1.09 |
% |
(d) |
1.31 |
% |
44.9 |
% |
(4.80) |
| (b) |
82,605 |
| 0.97 |
| (c) |
1.06 |
| (d) |
1.13 |
| 42.6 |
|
42.96 |
| (b) |
84,871 |
| 0.98 |
| (c) |
1.07 |
| (d) |
0.82 |
| 46.3 |
|
(8.14) |
| (b) |
62,003 |
| 1.04 |
| (c) |
1.14 |
| (d) |
1.39 |
| 54.6 |
|
12.14 |
| (b) |
74,483 |
| 1.06 |
| (c) |
1.15 |
| (d) |
1.97 |
| 51.5 |
|
|
|
|
|
|
|
|
| |
(0.13) |
|
| 2,556,406 |
| 0.72 |
| (e) |
– |
|
| 1.59 |
| 44.9 |
|
(4.56) |
|
| 2,634,970 |
| 0.70 |
| (e) |
– |
|
| 1.39 |
| 42.6 |
|
43.27 |
|
| 3,457,999 |
| 0.70 |
| (e) |
– |
|
| 1.07 |
| 46.3 |
|
(7.82) |
|
| 1,754,898 |
| 0.72 |
| (e) |
– |
|
| 1.72 |
| 54.6 |
|
12.53 |
|
| 2,065,317 |
| 0.72 |
| (e) |
– |
|
| 2.30 |
| 51.5 |
|
|
|
|
|
|
|
|
| |
(0.99) |
|
| 3,475 |
| 1.58 |
| (e) |
– |
|
| 0.73 |
| 44.9 |
|
(5.41) |
|
| 4,060 |
| 1.57 |
| (e) |
– |
|
| 0.53 |
| 42.6 |
|
42.06 |
|
| 4,000 |
| 1.58 |
| (e) |
– |
|
| 0.22 |
| 46.3 |
|
(8.58) |
|
| 2,889 |
| 1.59 |
| (e) |
– |
|
| 0.85 |
| 54.6 |
|
11.53 |
|
| 4,436 |
| 1.59 |
| (e) |
– |
|
| 1.44 |
| 51.5 |
|
|
|
|
|
|
|
|
| |
(0.67) |
|
| 5,941 |
| 1.27 |
| (e) |
– |
|
| 1.04 |
| 44.9 |
|
(5.11) |
|
| 6,078 |
| 1.26 |
| (e) |
– |
|
| 0.83 |
| 42.6 |
|
42.56 |
|
| 7,133 |
| 1.27 |
| (e) |
– |
|
| 0.52 |
| 46.3 |
|
(8.36) |
|
| 4,056 |
| 1.28 |
| (e) |
– |
|
| 1.16 |
| 54.6 |
|
11.90 |
|
| 5,695 |
| 1.28 |
| (e) |
– |
|
| 1.77 |
| 51.5 |
|
|
|
|
|
|
|
|
| |
(0.48) |
|
| 1,123 |
| 1.08 |
| (e) |
– |
|
| 1.21 |
| 44.9 |
|
(4.97) |
|
| 1,934 |
| 1.07 |
| (e) |
– |
|
| 1.01 |
| 42.6 |
|
42.86 |
|
| 2,599 |
| 1.08 |
| (e) |
– |
|
| 0.72 |
| 46.3 |
|
(8.19) |
|
| 1,866 |
| 1.09 |
| (e) |
– |
|
| 1.34 |
| 54.6 |
|
12.09 |
|
| 4,028 |
| 1.09 |
| (e) |
– |
|
| 1.98 |
| 51.5 |
|
|
|
|
|
|
|
|
| |
(0.34) |
|
| 5,618 |
| 0.96 |
| (e) |
– |
|
| 1.34 |
| 44.9 |
|
(4.81) |
|
| 5,432 |
| 0.95 |
| (e) |
– |
|
| 1.15 |
| 42.6 |
|
42.94 |
|
| 8,722 |
| 0.96 |
| (e) |
– |
|
| 0.84 |
| 46.3 |
|
(8.05) |
|
| 6,935 |
| 0.97 |
| (e) |
– |
|
| 1.47 |
| 54.6 |
|
12.22 |
|
| 10,455 |
| 0.97 |
| (e) |
– |
|
| 2.11 |
| 51.5 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(d)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(e)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
MIDCAP
FUND |
|
|
|
|
|
|
| |
Class
A shares |
|
|
|
|
|
|
| |
2023 |
$30.71 |
| ($0.10) |
| $2.12 |
| $2.02 |
| $– |
| ($0.99) |
| ($0.99) |
| $31.74 |
|
2022 |
42.87 |
| (0.09) |
| (8.74) |
| (8.83) |
| – |
| (3.33) |
| (3.33) |
| 30.71 |
|
2021 |
30.19 |
| (0.19) |
| 13.26 |
| 13.07 |
| – |
| (0.39) |
| (0.39) |
| 42.87 |
|
2020 |
30.15 |
| (0.01) |
| 1.44 |
| 1.43 |
| (0.07) |
| (1.32) |
| (1.39) |
| 30.19 |
|
2019 |
26.24 |
| 0.01 |
| 6.64 |
| 6.65 |
| – |
| (2.74) |
| (2.74) |
| 30.15 |
|
Class
C shares |
|
|
|
|
|
|
| |
2023 |
26.19 |
| (0.31) |
| 1.80 |
| 1.49 |
| – |
| (0.99) |
| (0.99) |
| 26.69 |
|
2022 |
37.32 |
| (0.31) |
| (7.49) |
| (7.80) |
| – |
| (3.33) |
| (3.33) |
| 26.19 |
|
2021 |
26.51 |
| (0.39) |
| 11.59 |
| 11.20 |
| – |
| (0.39) |
| (0.39) |
| 37.32 |
|
2020 |
26.77 |
| (0.19) |
| 1.25 |
| 1.06 |
| – |
| (1.32) |
| (1.32) |
| 26.51 |
|
2019 |
23.77 |
| (0.16) |
| 5.90 |
| 5.74 |
| – |
| (2.74) |
| (2.74) |
| 26.77 |
|
Class
J shares |
|
|
|
|
|
|
| |
2023 |
29.44 |
| (0.05) |
| 2.03 |
| 1.98 |
| – |
| (0.99) |
| (0.99) |
| 30.43 |
|
2022 |
41.18 |
| (0.04) |
| (8.37) |
| (8.41) |
| – |
| (3.33) |
| (3.33) |
| 29.44 |
|
2021 |
28.96 |
| (0.12) |
| 12.73 |
| 12.61 |
| – |
| (0.39) |
| (0.39) |
| 41.18 |
|
2020 |
28.99 |
| 0.03 |
| 1.38 |
| 1.41 |
| (0.12) |
| (1.32) |
| (1.44) |
| 28.96 |
|
2019 |
25.30 |
| 0.05 |
| 6.38 |
| 6.43 |
| – |
| (2.74) |
| (2.74) |
| 28.99 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
31.88 |
| (0.01) |
| 2.20 |
| 2.19 |
| – |
| (0.99) |
| (0.99) |
| 33.08 |
|
2022 |
44.26 |
| – |
| (9.05) |
| (9.05) |
| – |
| (3.33) |
| (3.33) |
| 31.88 |
|
2021 |
31.08 |
| (0.09) |
| 13.66 |
| 13.57 |
| – |
| (0.39) |
| (0.39) |
| 44.26 |
|
2020 |
31.00 |
| 0.06 |
| 1.49 |
| 1.55 |
| (0.15) |
| (1.32) |
| (1.47) |
| 31.08 |
|
2019 |
26.84 |
| 0.09 |
| 6.83 |
| 6.92 |
| (0.02) |
| (2.74) |
| (2.76) |
| 31.00 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
27.37 |
| (0.24) |
| 1.90 |
| 1.66 |
| – |
| (0.99) |
| (0.99) |
| 28.04 |
|
2022 |
38.77 |
| (0.24) |
| (7.83) |
| (8.07) |
| – |
| (3.33) |
| (3.33) |
| 27.37 |
|
2021 |
27.47 |
| (0.35) |
| 12.04 |
| 11.69 |
| – |
| (0.39) |
| (0.39) |
| 38.77 |
|
2020 |
27.63 |
| (0.14) |
| 1.30 |
| 1.16 |
| – |
| (1.32) |
| (1.32) |
| 27.47 |
|
2019 |
24.39 |
| (0.11) |
| 6.09 |
| 5.98 |
| – |
| (2.74) |
| (2.74) |
| 27.63 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average
Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
6.62 |
% |
(b) |
$1,590,186 |
| 0.95 |
% |
| – |
% |
| (0.30) |
% |
10.1 |
% |
(22.25) |
| (b) |
1,591,916 |
| 0.94 |
|
| – |
|
| (0.27) |
| 14.1 |
|
43.63 |
| (b) |
2,198,683 |
| 0.93 |
|
| – |
|
| (0.50) |
| 12.4 |
|
4.83 |
| (b) |
1,607,917 |
| 0.95 |
|
| – |
|
| (0.04) |
| 13.9 |
|
29.21 |
| (b) |
1,645,317 |
| 0.98 |
|
| – |
|
| 0.05 |
| 13.6 |
|
|
|
|
|
|
|
|
| |
5.71 |
| (b) |
29,926 |
| 1.78 |
|
| – |
|
| (1.13) |
| 10.1 |
|
(22.84) |
| (b) |
40,097 |
| 1.72 |
|
| – |
|
| (1.06) |
| 14.1 |
|
42.62 |
| (b) |
72,682 |
| 1.67 |
|
| – |
|
| (1.21) |
| 12.4 |
|
4.02 |
| (b) |
158,906 |
| 1.69 |
|
| – |
|
| (0.74) |
| 13.9 |
|
28.32 |
| (b) |
228,866 |
| 1.70 |
|
| – |
|
| (0.67) |
| 13.6 |
|
|
|
|
|
|
|
|
| |
6.78 |
| (b) |
293,360 |
| 0.80 |
| (c) |
0.82 |
| (d) |
(0.16) |
| 10.1 |
|
(22.13) |
| (b) |
292,151 |
| 0.79 |
| (c) |
0.81 |
| (d) |
(0.12) |
| 14.1 |
|
43.85 |
| (b),(e) |
407,907 |
| 0.78 |
| (c) |
0.80 |
| (d) |
(0.34) |
| 12.4 |
|
4.98 |
| (b),(e) |
310,404 |
| 0.79 |
| (c) |
0.82 |
| (d) |
0.12 |
| 13.9 |
|
29.45 |
| (b) |
325,426 |
| 0.83 |
| (c) |
0.86 |
| (d) |
0.21 |
| 13.6 |
|
|
|
|
|
|
|
|
| |
6.92 |
|
| 9,079,129 |
| 0.68 |
|
| – |
|
| (0.04) |
| 10.1 |
|
(22.05) |
| (e) |
10,110,818 |
| 0.67 |
| (f) |
– |
|
| 0.00 |
| 14.1 |
|
44.03 |
| (e) |
15,790,247 |
| 0.67 |
| (f) |
– |
|
| (0.24) |
| 12.4 |
|
5.08 |
|
| 12,106,903 |
| 0.69 |
| (f) |
– |
|
| 0.21 |
| 13.9 |
|
29.61 |
|
| 12,070,133 |
| 0.70 |
| (f) |
– |
|
| 0.34 |
| 13.6 |
|
|
|
|
|
|
|
|
| |
6.10 |
|
| 81,144 |
| 1.46 |
|
| – |
|
| (0.82) |
| 10.1 |
|
(22.67) |
|
| 83,862 |
| 1.46 |
|
| – |
|
| (0.79) |
| 14.1 |
|
42.92 |
|
| 116,642 |
| 1.46 |
|
| – |
|
| (1.02) |
| 12.4 |
|
4.27 |
|
| 89,600 |
| 1.46 |
|
| – |
|
| (0.54) |
| 13.9 |
|
28.61 |
|
| 98,489 |
| 1.47 |
|
| – |
|
| (0.43) |
| 13.6 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(d)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(e)Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which a shareholder would have paid or received from a subscription or
redemption.
(f)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
|
Net
Asset Value, Beginning of Period |
Net
Investment
Income
(Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
MIDCAP
FUND |
|
|
|
|
|
|
| |
R-3
shares |
|
|
|
|
|
|
| |
2023 |
$29.68 |
| ($0.16) |
| $2.05 |
| $1.89 |
| $– |
| ($0.99) |
| ($0.99) |
| $30.58 |
|
2022 |
41.63 |
| (0.16) |
| (8.46) |
| (8.62) |
| – |
| (3.33) |
| (3.33) |
| 29.68 |
|
2021 |
29.38 |
| (0.26) |
| 12.90 |
| 12.64 |
| – |
| (0.39) |
| (0.39) |
| 41.63 |
|
2020 |
29.38 |
| (0.06) |
| 1.38 |
| 1.32 |
| – |
| (1.32) |
| (1.32) |
| 29.38 |
|
2019 |
25.68 |
| (0.04) |
| 6.48 |
| 6.44 |
| – |
| (2.74) |
| (2.74) |
| 29.38 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
31.36 |
| (0.11) |
| 2.17 |
| 2.06 |
| – |
| (0.99) |
| (0.99) |
| 32.43 |
|
2022 |
43.71 |
| (0.11) |
| (8.91) |
| (9.02) |
| – |
| (3.33) |
| (3.33) |
| 31.36 |
|
2021 |
30.78 |
| (0.20) |
| 13.52 |
| 13.32 |
| – |
| (0.39) |
| (0.39) |
| 43.71 |
|
2020 |
30.70 |
| (0.01) |
| 1.46 |
| 1.45 |
| (0.05) |
| (1.32) |
| (1.37) |
| 30.78 |
|
2019 |
26.66 |
| 0.01 |
| 6.77 |
| 6.78 |
| – |
| (2.74) |
| (2.74) |
| 30.70 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
31.21 |
| (0.07) |
| 2.16 |
| 2.09 |
| – |
| (0.99) |
| (0.99) |
| 32.31 |
|
2022 |
43.47 |
| (0.06) |
| (8.87) |
| (8.93) |
| – |
| (3.33) |
| (3.33) |
| 31.21 |
|
2021 |
30.57 |
| (0.15) |
| 13.44 |
| 13.29 |
| – |
| (0.39) |
| (0.39) |
| 43.47 |
|
2020 |
30.53 |
| 0.03 |
| 1.44 |
| 1.47 |
| (0.11) |
| (1.32) |
| (1.43) |
| 30.57 |
|
2019 |
26.50 |
| 0.05 |
| 6.72 |
| 6.77 |
| – |
| (2.74) |
| (2.74) |
| 30.53 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
31.90 |
| 0.01 |
| 2.21 |
| 2.22 |
| – |
| (0.99) |
| (0.99) |
| 33.13 |
|
2022 |
44.26 |
| 0.03 |
| (9.06) |
| (9.03) |
| – |
| (3.33) |
| (3.33) |
| 31.90 |
|
2021 |
31.05 |
| (0.06) |
| 13.66 |
| 13.60 |
| – |
| (0.39) |
| (0.39) |
| 44.26 |
|
2020 |
30.97 |
| 0.09 |
| 1.49 |
| 1.58 |
| (0.18) |
| (1.32) |
| (1.50) |
| 31.05 |
|
2019 |
26.83 |
| 0.13 |
| 6.80 |
| 6.93 |
| (0.05) |
| (2.74) |
| (2.79) |
| 30.97 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
| |
|
|
|
|
|
| |
6.41 |
% |
| $40,789 |
| 1.15 |
% |
| (0.51) |
% |
10.1 |
% |
(22.42) |
|
| 44,432 |
| 1.15 |
|
| (0.49) |
| 14.1 |
|
43.32 |
| (b) |
73,376 |
| 1.15 |
|
| (0.71) |
| 12.4 |
|
4.61 |
| (b) |
66,616 |
| 1.15 |
|
| (0.22) |
| 13.9 |
|
29.01 |
|
| 83,961 |
| 1.16 |
|
| (0.14) |
| 13.6 |
|
|
|
|
|
|
| |
6.61 |
|
| 45,069 |
| 0.96 |
|
| (0.32) |
| 10.1 |
|
(22.25) |
|
| 48,916 |
| 0.96 |
|
| (0.30) |
| 14.1 |
|
43.61 |
|
| 81,569 |
| 0.96 |
|
| (0.52) |
| 12.4 |
|
4.82 |
|
| 71,485 |
| 0.96 |
|
| (0.04) |
| 13.9 |
|
29.23 |
|
| 76,985 |
| 0.97 |
|
| 0.02 |
| 13.6 |
|
|
|
|
|
|
| |
6.74 |
|
| 219,018 |
| 0.84 |
|
| (0.21) |
| 10.1 |
|
(22.16) |
|
| 296,351 |
| 0.84 |
|
| (0.17) |
| 14.1 |
|
43.76 |
| (b) |
427,065 |
| 0.84 |
|
| (0.40) |
| 12.4 |
|
4.93 |
| (b) |
325,105 |
| 0.84 |
|
| 0.09 |
| 13.9 |
|
29.39 |
|
| 387,741 |
| 0.85 |
|
| 0.19 |
| 13.6 |
|
|
|
|
|
|
| |
7.01 |
|
| 6,835,701 |
| 0.60 |
| (c) |
0.04 |
| 10.1 |
|
(21.98) |
|
| 5,989,509 |
| 0.59 |
| (c) |
0.09 |
| 14.1 |
|
44.13 |
|
| 5,220,374 |
| 0.59 |
| (c) |
(0.15) |
| 12.4 |
|
5.20 |
|
| 4,054,486 |
| 0.60 |
| (c) |
0.29 |
| 13.9 |
|
29.71 |
|
| 2,431,236 |
| 0.60 |
| (c) |
0.45 |
| 13.6 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which a shareholder would have paid or received from a subscription or
redemption.
(c)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
| |
|
Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
MIDCAP
GROWTH FUND |
|
|
|
|
|
| |
Class
J shares |
|
|
|
|
|
| |
2023 |
$5.77 |
| ($0.02) |
| ($0.29) |
| ($0.31) |
| $– |
| $– |
| $5.46 |
|
2022 |
10.74 |
| (0.03) |
| (2.79) |
| (2.82) |
| (2.15) |
| (2.15) |
| 5.77 |
|
2021 |
8.39 |
| (0.03) |
| 3.63 |
| 3.60 |
| (1.25) |
| (1.25) |
| 10.74 |
|
2020 |
6.40 |
| (0.04) |
| 2.39 |
| 2.35 |
| (0.36) |
| (0.36) |
| 8.39 |
|
2019 |
7.05 |
| (0.03) |
| 0.49 |
| 0.46 |
| (1.11) |
| (1.11) |
| 6.40 |
|
Institutional
shares |
|
|
|
|
|
| |
2023 |
8.69 |
| (0.01) |
| (0.45) |
| (0.46) |
| – |
| – |
| 8.23 |
|
2022 |
14.99 |
| (0.03) |
| (4.12) |
| (4.15) |
| (2.15) |
| (2.15) |
| 8.69 |
|
2021 |
11.30 |
| (0.03) |
| 4.97 |
| 4.94 |
| (1.25) |
| (1.25) |
| 14.99 |
|
2020 |
8.48 |
| (0.04) |
| 3.22 |
| 3.18 |
| (0.36) |
| (0.36) |
| 11.30 |
|
2019 |
8.92 |
| (0.02) |
| 0.69 |
| 0.67 |
| (1.11) |
| (1.11) |
| 8.48 |
|
R-1
shares |
|
|
|
|
|
| |
2023 |
5.94 |
| (0.06) |
| (0.29) |
| (0.35) |
| – |
| – |
| 5.59 |
|
2022 |
11.05 |
| (0.08) |
| (2.88) |
| (2.96) |
| (2.15) |
| (2.15) |
| 5.94 |
|
2021 |
8.66 |
| (0.10) |
| 3.74 |
| 3.64 |
| (1.25) |
| (1.25) |
| 11.05 |
|
2020 |
6.63 |
| (0.09) |
| 2.48 |
| 2.39 |
| (0.36) |
| (0.36) |
| 8.66 |
|
2019 |
7.29 |
| (0.07) |
| 0.52 |
| 0.45 |
| (1.11) |
| (1.11) |
| 6.63 |
|
R-3
shares |
|
|
|
|
|
| |
2023 |
7.66 |
| (0.05) |
| (0.39) |
| (0.44) |
| – |
| – |
| 7.22 |
|
2022 |
13.55 |
| (0.07) |
| (3.67) |
| (3.74) |
| (2.15) |
| (2.15) |
| 7.66 |
|
2021 |
10.35 |
| (0.09) |
| 4.54 |
| 4.45 |
| (1.25) |
| (1.25) |
| 13.55 |
|
2020 |
7.84 |
| (0.07) |
| 2.94 |
| 2.87 |
| (0.36) |
| (0.36) |
| 10.35 |
|
2019 |
8.37 |
| (0.06) |
| 0.64 |
| 0.58 |
| (1.11) |
| (1.11) |
| 7.84 |
|
R-4
shares |
|
|
|
|
|
| |
2023 |
8.45 |
| (0.04) |
| (0.42) |
| (0.46) |
| – |
| – |
| 7.99 |
|
2022 |
14.68 |
| (0.06) |
| (4.02) |
| (4.08) |
| (2.15) |
| (2.15) |
| 8.45 |
|
2021 |
11.12 |
| (0.07) |
| 4.88 |
| 4.81 |
| (1.25) |
| (1.25) |
| 14.68 |
|
2020 |
8.38 |
| (0.06) |
| 3.16 |
| 3.10 |
| (0.36) |
| (0.36) |
| 11.12 |
|
2019 |
8.85 |
| (0.05) |
| 0.69 |
| 0.64 |
| (1.11) |
| (1.11) |
| 8.38 |
|
R-5
shares |
|
|
|
|
|
| |
2023 |
9.02 |
| (0.03) |
| (0.45) |
| (0.48) |
| – |
| – |
| 8.54 |
|
2022 |
15.50 |
| (0.05) |
| (4.28) |
| (4.33) |
| (2.15) |
| (2.15) |
| 9.02 |
|
2021 |
11.67 |
| (0.05) |
| 5.13 |
| 5.08 |
| (1.25) |
| (1.25) |
| 15.50 |
|
2020 |
8.77 |
| (0.05) |
| 3.31 |
| 3.26 |
| (0.36) |
| (0.36) |
| 11.67 |
|
2019 |
9.19 |
| (0.04) |
| 0.73 |
| 0.69 |
| (1.11) |
| (1.11) |
| 8.77 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Gross Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
(5.37) |
% |
(b) |
$70,897 |
| 0.93 |
% |
(c) |
0.95 |
% |
(d) |
(0.33) |
% |
181.4 |
% |
(31.59) |
| (b),(e) |
81,825 |
| 0.90 |
| (c) |
0.92 |
| (d) |
(0.42) |
| 165.5 |
|
45.43 |
| (b),(e) |
131,086 |
| 0.88 |
| (c) |
0.90 |
| (d) |
(0.35) |
| 114.5 |
|
38.55 |
| (b),(e) |
93,209 |
| 0.93 |
| (c) |
0.96 |
| (d) |
(0.56) |
| 120.6 |
|
10.27 |
| (b) |
71,129 |
| 0.97 |
| (c) |
1.00 |
| (d) |
(0.46) |
| 104.6 |
|
|
|
|
|
|
|
|
| |
(5.29) |
|
| 98,232 |
| 0.75 |
| (f) |
– |
|
| (0.15) |
| 181.4 |
|
(31.50) |
| (e) |
125,149 |
| 0.75 |
| (f) |
– |
|
| (0.26) |
| 165.5 |
|
45.74 |
| (e) |
149,191 |
| 0.75 |
| (f) |
– |
|
| (0.24) |
| 114.5 |
|
38.77 |
|
| 58,852 |
| 0.75 |
| (f) |
– |
|
| (0.38) |
| 120.6 |
|
10.51 |
|
| 52,324 |
| 0.75 |
| (f) |
– |
|
| (0.25) |
| 104.6 |
|
|
|
|
|
|
|
|
| |
(5.89) |
|
| 777 |
| 1.55 |
|
| – |
|
| (0.95) |
| 181.4 |
|
(32.06) |
| (e) |
881 |
| 1.54 |
|
| – |
|
| (1.05) |
| 165.5 |
|
44.57 |
| (e) |
1,740 |
| 1.54 |
|
| – |
|
| (1.02) |
| 114.5 |
|
37.62 |
|
| 1,789 |
| 1.55 |
|
| – |
|
| (1.19) |
| 120.6 |
|
9.71 |
|
| 1,286 |
| 1.55 |
|
| – |
|
| (1.05) |
| 104.6 |
|
|
|
|
|
|
|
|
| |
(5.74) |
|
| 15,596 |
| 1.24 |
|
| – |
|
| (0.64) |
| 181.4 |
|
(31.86) |
| (e) |
17,879 |
| 1.23 |
|
| – |
|
| (0.75) |
| 165.5 |
|
45.01 |
| (e) |
22,672 |
| 1.23 |
|
| – |
|
| (0.72) |
| 114.5 |
|
38.08 |
| (e) |
13,555 |
| 1.24 |
|
| – |
|
| (0.87) |
| 120.6 |
|
10.06 |
|
| 11,187 |
| 1.24 |
|
| – |
|
| (0.74) |
| 104.6 |
|
|
|
|
|
|
|
|
| |
(5.44) |
|
| 4,295 |
| 1.05 |
|
| – |
|
| (0.45) |
| 181.4 |
|
(31.72) |
| (e) |
4,709 |
| 1.04 |
|
| – |
|
| (0.56) |
| 165.5 |
|
45.27 |
| (e) |
6,759 |
| 1.04 |
|
| – |
|
| (0.52) |
| 114.5 |
|
38.26 |
|
| 4,709 |
| 1.05 |
|
| – |
|
| (0.68) |
| 120.6 |
|
10.20 |
|
| 4,103 |
| 1.05 |
|
| – |
|
| (0.55) |
| 104.6 |
|
|
|
|
|
|
|
|
| |
(5.32) |
|
| 4,137 |
| 0.93 |
|
| – |
|
| (0.33) |
| 181.4 |
|
(31.64) |
| (e) |
5,778 |
| 0.92 |
|
| – |
|
| (0.43) |
| 165.5 |
|
45.47 |
| (e) |
25,223 |
| 0.92 |
|
| – |
|
| (0.39) |
| 114.5 |
|
38.38 |
|
| 23,760 |
| 0.93 |
|
| – |
|
| (0.55) |
| 120.6 |
|
10.40 |
|
| 22,099 |
| 0.93 |
|
| – |
|
| (0.43) |
| 104.6 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(d)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(e)Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which a shareholder would have paid or received from a subscription or
redemption.
(f)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
MIDCAP
GROWTH FUND III |
|
|
|
|
|
| |
Class
J shares |
|
|
|
|
|
| |
2023 |
$7.29 |
| ($0.03) |
| ($0.10) |
| ($0.13) |
| ($0.19) |
| ($0.19) |
| $6.97 |
|
2022 |
13.69 |
| (0.05) |
| (2.92) |
| (2.97) |
| (3.43) |
| (3.43) |
| 7.29 |
|
2021 |
10.46 |
| (0.09) |
| 4.12 |
| 4.03 |
| (0.80) |
| (0.80) |
| 13.69 |
|
2020 |
9.53 |
| (0.06) |
| 1.98 |
| 1.92 |
| (0.99) |
| (0.99) |
| 10.46 |
|
2019 |
9.35 |
| (0.05) |
| 1.37 |
| 1.32 |
| (1.14) |
| (1.14) |
| 9.53 |
|
Institutional
shares |
|
|
|
|
|
| |
2023 |
10.59 |
| (0.01) |
| (0.14) |
| (0.15) |
| (0.19) |
| (0.19) |
| 10.25 |
|
2022 |
18.18 |
| (0.04) |
| (4.12) |
| (4.16) |
| (3.43) |
| (3.43) |
| 10.59 |
|
2021 |
13.63 |
| (0.08) |
| 5.43 |
| 5.35 |
| (0.80) |
| (0.80) |
| 18.18 |
|
2020 |
12.10 |
| (0.04) |
| 2.56 |
| 2.52 |
| (0.99) |
| (0.99) |
| 13.63 |
|
2019 |
11.50 |
| (0.02) |
| 1.76 |
| 1.74 |
| (1.14) |
| (1.14) |
| 12.10 |
|
R-1
shares |
|
|
|
|
|
| |
2023 |
7.12 |
| (0.07) |
| (0.09) |
| (0.16) |
| (0.19) |
| (0.19) |
| 6.77 |
|
2022 |
13.51 |
| (0.10) |
| (2.86) |
| (2.96) |
| (3.43) |
| (3.43) |
| 7.12 |
|
2021 |
10.39 |
| (0.17) |
| 4.09 |
| 3.92 |
| (0.80) |
| (0.80) |
| 13.51 |
|
2020 |
9.52 |
| (0.11) |
| 1.97 |
| 1.86 |
| (0.99) |
| (0.99) |
| 10.39 |
|
2019 |
9.39 |
| (0.10) |
| 1.37 |
| 1.27 |
| (1.14) |
| (1.14) |
| 9.52 |
|
R-3
shares |
|
|
|
|
|
| |
2023 |
9.17 |
| (0.06) |
| (0.12) |
| (0.18) |
| (0.19) |
| (0.19) |
| 8.80 |
|
2022 |
16.30 |
| (0.10) |
| (3.60) |
| (3.70) |
| (3.43) |
| (3.43) |
| 9.17 |
|
2021 |
12.36 |
| (0.16) |
| 4.90 |
| 4.74 |
| (0.80) |
| (0.80) |
| 16.30 |
|
2020 |
11.12 |
| (0.10) |
| 2.33 |
| 2.23 |
| (0.99) |
| (0.99) |
| 12.36 |
|
2019 |
10.72 |
| (0.08) |
| 1.62 |
| 1.54 |
| (1.14) |
| (1.14) |
| 11.12 |
|
R-4
shares |
|
|
|
|
|
| |
2023 |
9.75 |
| (0.05) |
| (0.12) |
| (0.17) |
| (0.19) |
| (0.19) |
| 9.39 |
|
2022 |
17.08 |
| (0.09) |
| (3.81) |
| (3.90) |
| (3.43) |
| (3.43) |
| 9.75 |
|
2021 |
12.90 |
| (0.14) |
| 5.12 |
| 4.98 |
| (0.80) |
| (0.80) |
| 17.08 |
|
2020 |
11.53 |
| (0.08) |
| 2.44 |
| 2.36 |
| (0.99) |
| (0.99) |
| 12.90 |
|
2019 |
11.06 |
| (0.06) |
| 1.67 |
| 1.61 |
| (1.14) |
| (1.14) |
| 11.53 |
|
R-5
shares |
|
|
|
|
|
| |
2023 |
10.54 |
| (0.04) |
| (0.13) |
| (0.17) |
| (0.19) |
| (0.19) |
| 10.18 |
|
2022 |
18.15 |
| (0.08) |
| (4.10) |
| (4.18) |
| (3.43) |
| (3.43) |
| 10.54 |
|
2021 |
13.65 |
| (0.12) |
| 5.42 |
| 5.30 |
| (0.80) |
| (0.80) |
| 18.15 |
|
2020 |
12.14 |
| (0.07) |
| 2.57 |
| 2.50 |
| (0.99) |
| (0.99) |
| 13.65 |
|
2019 |
11.56 |
| (0.05) |
| 1.77 |
| 1.72 |
| (1.14) |
| (1.14) |
| 12.14 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Gross Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
(1.76) |
% |
(b) |
$36,508 |
| 1.13 |
% |
(c) |
1.17 |
% |
(d) |
(0.42) |
% |
49.4 |
% |
(27.12) |
| (b) |
38,816 |
| 1.14 |
| (c) |
1.18 |
| (d) |
(0.65) |
| 44.0 |
|
39.96 |
| (b) |
59,567 |
| 1.12 |
| (c) |
1.17 |
| (d) |
(0.77) |
| 34.3 |
|
21.76 |
| (b) |
45,753 |
| 1.19 |
| (c) |
1.25 |
| (d) |
(0.65) |
| 50.7 |
|
17.48 |
| (b) |
41,366 |
| 1.27 |
| (c) |
1.38 |
| (d) |
(0.55) |
| 43.2 |
|
|
|
|
|
|
|
|
| |
(1.40) |
|
| 1,033,488 |
| 0.80 |
| (e) |
– |
|
| (0.10) |
| 49.4 |
|
(26.94) |
|
| 1,120,495 |
| 0.85 |
| (e) |
– |
|
| (0.35) |
| 44.0 |
|
40.37 |
|
| 1,165,856 |
| 0.86 |
| (e) |
– |
|
| (0.50) |
| 34.3 |
|
22.12 |
|
| 1,127,871 |
| 0.87 |
| (e) |
– |
|
| (0.33) |
| 50.7 |
|
17.93 |
|
| 1,032,306 |
| 0.91 |
| (e) |
– |
|
| (0.19) |
| 43.2 |
|
|
|
|
|
|
|
|
| |
(2.24) |
|
| 1,071 |
| 1.68 |
| (e) |
– |
|
| (0.97) |
| 49.4 |
|
(27.51) |
|
| 1,248 |
| 1.73 |
| (e) |
– |
|
| (1.24) |
| 44.0 |
|
39.12 |
|
| 1,781 |
| 1.74 |
| (e) |
– |
|
| (1.38) |
| 34.3 |
|
21.09 |
|
| 1,430 |
| 1.75 |
| (e) |
– |
|
| (1.21) |
| 50.7 |
|
16.80 |
|
| 1,438 |
| 1.78 |
| (e) |
– |
|
| (1.06) |
| 43.2 |
|
|
|
|
|
|
|
|
| |
(1.95) |
|
| 2,698 |
| 1.37 |
| (e) |
– |
|
| (0.66) |
| 49.4 |
|
(27.30) |
|
| 3,568 |
| 1.42 |
| (e) |
– |
|
| (0.93) |
| 44.0 |
|
39.54 |
|
| 5,149 |
| 1.43 |
| (e) |
– |
|
| (1.09) |
| 34.3 |
|
21.41 |
|
| 2,643 |
| 1.44 |
| (e) |
– |
|
| (0.89) |
| 50.7 |
|
17.28 |
|
| 2,913 |
| 1.47 |
| (e) |
– |
|
| (0.75) |
| 43.2 |
|
|
|
|
|
|
|
|
| |
(1.73) |
|
| 1,374 |
| 1.18 |
| (e) |
– |
|
| (0.48) |
| 49.4 |
|
(27.21) |
|
| 1,379 |
| 1.23 |
| (e) |
– |
|
| (0.75) |
| 44.0 |
|
39.76 |
|
| 2,640 |
| 1.24 |
| (e) |
– |
|
| (0.89) |
| 34.3 |
|
21.80 |
|
| 2,223 |
| 1.25 |
| (e) |
– |
|
| (0.69) |
| 50.7 |
|
17.39 |
|
| 3,004 |
| 1.28 |
| (e) |
– |
|
| (0.57) |
| 43.2 |
|
|
|
|
|
|
|
|
| |
(1.60) |
|
| 2,945 |
| 1.06 |
| (e) |
– |
|
| (0.36) |
| 49.4 |
|
(27.13) |
|
| 2,520 |
| 1.11 |
| (e) |
– |
|
| (0.61) |
| 44.0 |
|
39.92 |
|
| 5,903 |
| 1.12 |
| (e) |
– |
|
| (0.76) |
| 34.3 |
|
21.87 |
|
| 6,505 |
| 1.13 |
| (e) |
– |
|
| (0.59) |
| 50.7 |
|
17.62 |
|
| 5,527 |
| 1.16 |
| (e) |
– |
|
| (0.44) |
| 43.2 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(d)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(e)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
| |
|
Net
Asset Value, Beginning of Period |
Net
Investment
Income
(Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized
Gains
|
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
MIDCAP
S&P 400 INDEX FUND |
|
|
|
|
|
| |
Class
J shares |
|
|
|
|
|
|
| |
2023 |
$20.31 |
| $0.24 |
| ($0.52) |
| ($0.28) |
| ($0.24) |
| ($1.19) |
| ($1.43) |
| $18.60 |
|
2022 |
25.15 |
| 0.24 |
| (3.04) |
| (2.80) |
| (0.25) |
| (1.79) |
| (2.04) |
| 20.31 |
|
2021 |
18.23 |
| 0.26 |
| 8.18 |
| 8.44 |
| (0.21) |
| (1.31) |
| (1.52) |
| 25.15 |
|
2020 |
19.65 |
| 0.20 |
| (0.41) |
| (0.21) |
| (0.26) |
| (0.95) |
| (1.21) |
| 18.23 |
|
2019 |
20.17 |
| 0.23 |
| 1.15 |
| 1.38 |
| (0.22) |
| (1.68) |
| (1.90) |
| 19.65 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
21.11 |
| 0.28 |
| (0.54) |
| (0.26) |
| (0.27) |
| (1.19) |
| (1.46) |
| 19.39 |
|
2022 |
26.06 |
| 0.28 |
| (3.16) |
| (2.88) |
| (0.28) |
| (1.79) |
| (2.07) |
| 21.11 |
|
2021 |
18.84 |
| 0.31 |
| 8.46 |
| 8.77 |
| (0.24) |
| (1.31) |
| (1.55) |
| 26.06 |
|
2020 |
20.28 |
| 0.25 |
| (0.44) |
| (0.19) |
| (0.30) |
| (0.95) |
| (1.25) |
| 18.84 |
|
2019 |
20.76 |
| 0.28 |
| 1.18 |
| 1.46 |
| (0.26) |
| (1.68) |
| (1.94) |
| 20.28 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
20.81 |
| 0.12 |
| (0.53) |
| (0.41) |
| (0.11) |
| (1.19) |
| (1.30) |
| 19.10 |
|
2022 |
25.71 |
| 0.10 |
| (3.12) |
| (3.02) |
| (0.09) |
| (1.79) |
| (1.88) |
| 20.81 |
|
2021 |
18.62 |
| 0.11 |
| 8.37 |
| 8.48 |
| (0.08) |
| (1.31) |
| (1.39) |
| 25.71 |
|
2020 |
19.99 |
| 0.10 |
| (0.44) |
| (0.34) |
| (0.08) |
| (0.95) |
| (1.03) |
| 18.62 |
|
2019 |
20.45 |
| 0.12 |
| 1.18 |
| 1.30 |
| (0.08) |
| (1.68) |
| (1.76) |
| 19.99 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
21.57 |
| 0.19 |
| (0.54) |
| (0.35) |
| (0.17) |
| (1.19) |
| (1.36) |
| 19.86 |
|
2022 |
26.57 |
| 0.18 |
| (3.24) |
| (3.06) |
| (0.15) |
| (1.79) |
| (1.94) |
| 21.57 |
|
2021 |
19.19 |
| 0.19 |
| 8.64 |
| 8.83 |
| (0.14) |
| (1.31) |
| (1.45) |
| 26.57 |
|
2020 |
20.63 |
| 0.16 |
| (0.46) |
| (0.30) |
| (0.19) |
| (0.95) |
| (1.14) |
| 19.19 |
|
2019 |
21.05 |
| 0.19 |
| 1.21 |
| 1.40 |
| (0.14) |
| (1.68) |
| (1.82) |
| 20.63 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
21.70 |
| 0.23 |
| (0.55) |
| (0.32) |
| (0.21) |
| (1.19) |
| (1.40) |
| 19.98 |
|
2022 |
26.72 |
| 0.22 |
| (3.25) |
| (3.03) |
| (0.20) |
| (1.79) |
| (1.99) |
| 21.70 |
|
2021 |
19.29 |
| 0.23 |
| 8.68 |
| 8.91 |
| (0.17) |
| (1.31) |
| (1.48) |
| 26.72 |
|
2020 |
20.73 |
| 0.19 |
| (0.45) |
| (0.26) |
| (0.23) |
| (0.95) |
| (1.18) |
| 19.29 |
|
2019 |
21.14 |
| 0.23 |
| 1.22 |
| 1.45 |
| (0.18) |
| (1.68) |
| (1.86) |
| 20.73 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
21.95 |
| 0.26 |
| (0.57) |
| (0.31) |
| (0.23) |
| (1.19) |
| (1.42) |
| 20.22 |
|
2022 |
27.00 |
| 0.25 |
| (3.28) |
| (3.03) |
| (0.23) |
| (1.79) |
| (2.02) |
| 21.95 |
|
2021 |
19.48 |
| 0.27 |
| 8.76 |
| 9.03 |
| (0.20) |
| (1.31) |
| (1.51) |
| 27.00 |
|
2020 |
20.91 |
| 0.22 |
| (0.45) |
| (0.23) |
| (0.25) |
| (0.95) |
| (1.20) |
| 19.48 |
|
2019 |
21.32 |
| 0.25 |
| 1.23 |
| 1.48 |
| (0.21) |
| (1.68) |
| (1.89) |
| 20.91 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
21.11 |
| 0.30 |
| (0.54) |
| (0.24) |
| (0.29) |
| (1.19) |
| (1.48) |
| 19.39 |
|
2022 |
26.05 |
| 0.30 |
| (3.15) |
| (2.85) |
| (0.30) |
| (1.79) |
| (2.09) |
| 21.11 |
|
2021 |
18.83 |
| 0.32 |
| 8.46 |
| 8.78 |
| (0.25) |
| (1.31) |
| (1.56) |
| 26.05 |
|
2020 |
20.27 |
| 0.25 |
| (0.43) |
| (0.18) |
| (0.31) |
| (0.95) |
| (1.26) |
| 18.83 |
|
2019 |
20.74 |
| 0.29 |
| 1.19 |
| 1.48 |
| (0.27) |
| (1.68) |
| (1.95) |
| 20.27 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Gross Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
(1.41) |
% |
(b) |
$122,039 |
| 0.40 |
% |
(c) |
0.42 |
% |
(d) |
1.21 |
% |
20.4 |
% |
(11.85) |
| (b) |
127,212 |
| 0.39 |
| (c) |
0.41 |
| (d) |
1.12 |
| 20.9 |
|
48.22 |
| (b) |
151,143 |
| 0.39 |
| (c) |
0.41 |
| (d) |
1.11 |
| 19.2 |
|
(1.47) |
| (b) |
104,139 |
| 0.41 |
| (c) |
0.44 |
| (d) |
1.15 |
| 23.6 |
|
8.64 |
| (b) |
121,032 |
| 0.43 |
| (c) |
0.46 |
| (d) |
1.23 |
| 16.7 |
|
|
|
|
|
|
|
|
| |
(1.25) |
|
| 183,105 |
| 0.25 |
|
| – |
|
| 1.36 |
| 20.4 |
|
(11.73) |
|
| 188,790 |
| 0.23 |
|
| – |
|
| 1.27 |
| 20.9 |
|
48.45 |
|
| 251,222 |
| 0.22 |
|
| – |
|
| 1.27 |
| 19.2 |
|
(1.35) |
|
| 187,318 |
| 0.23 |
| (e) |
– |
|
| 1.34 |
| 23.6 |
|
8.84 |
|
| 347,631 |
| 0.23 |
| (e) |
– |
|
| 1.43 |
| 16.7 |
|
|
|
|
|
|
|
|
| |
(2.06) |
|
| 5,151 |
| 1.04 |
|
| – |
|
| 0.57 |
| 20.4 |
|
(12.45) |
| (f) |
5,539 |
| 1.04 |
|
| – |
|
| 0.47 |
| 20.9 |
|
47.28 |
| (f) |
6,584 |
| 1.04 |
|
| – |
|
| 0.45 |
| 19.2 |
|
(2.07) |
|
| 5,032 |
| 1.04 |
|
| – |
|
| 0.52 |
| 23.6 |
|
7.94 |
|
| 7,771 |
| 1.04 |
|
| – |
|
| 0.62 |
| 16.7 |
|
|
|
|
|
|
|
|
| |
(1.70) |
|
| 59,228 |
| 0.73 |
|
| – |
|
| 0.88 |
| 20.4 |
|
(12.15) |
|
| 67,797 |
| 0.73 |
|
| – |
|
| 0.77 |
| 20.9 |
|
47.71 |
|
| 88,428 |
| 0.73 |
|
| – |
|
| 0.76 |
| 19.2 |
|
(1.83) |
|
| 64,732 |
| 0.73 |
|
| – |
|
| 0.83 |
| 23.6 |
|
8.31 |
|
| 84,108 |
| 0.73 |
|
| – |
|
| 0.93 |
| 16.7 |
|
|
|
|
|
|
|
|
| |
(1.54) |
|
| 37,056 |
| 0.54 |
|
| – |
|
| 1.07 |
| 20.4 |
|
(12.00) |
|
| 42,003 |
| 0.54 |
|
| – |
|
| 0.97 |
| 20.9 |
|
47.98 |
|
| 53,233 |
| 0.54 |
|
| – |
|
| 0.95 |
| 19.2 |
|
(1.62) |
|
| 43,726 |
| 0.54 |
|
| – |
|
| 1.02 |
| 23.6 |
|
8.52 |
|
| 58,888 |
| 0.54 |
|
| – |
|
| 1.12 |
| 16.7 |
|
|
|
|
|
|
|
|
| |
(1.45) |
|
| 76,662 |
| 0.42 |
|
| – |
|
| 1.19 |
| 20.4 |
|
(11.87) |
|
| 95,818 |
| 0.42 |
|
| – |
|
| 1.08 |
| 20.9 |
|
48.14 |
|
| 122,169 |
| 0.42 |
|
| – |
|
| 1.08 |
| 19.2 |
|
(1.46) |
|
| 102,868 |
| 0.42 |
|
| – |
|
| 1.14 |
| 23.6 |
|
8.63 |
|
| 137,633 |
| 0.42 |
|
| – |
|
| 1.25 |
| 16.7 |
|
|
|
|
|
|
|
|
| |
(1.18) |
|
| 740,171 |
| 0.16 |
|
| – |
|
| 1.44 |
| 20.4 |
|
(11.64) |
|
| 712,153 |
| 0.16 |
| (e) |
– |
|
| 1.36 |
| 20.9 |
|
48.58 |
|
| 740,456 |
| 0.16 |
| (e) |
– |
|
| 1.34 |
| 19.2 |
|
(1.28) |
|
| 479,248 |
| 0.16 |
| (e) |
– |
|
| 1.38 |
| 23.6 |
|
8.94 |
|
| 531,623 |
| 0.17 |
| (e) |
– |
|
| 1.48 |
| 16.7 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(d)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(e)Reflects
Manager's
contractual
expense
limit.
(f)Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which a shareholder would have paid or received from a subscription or
redemption.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
|
| |
|
Net
Asset
Value,
Beginning
of
Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
MIDCAP
VALUE
FUND
I |
|
|
|
|
|
|
| |
Class
A
shares |
|
|
|
|
|
|
| |
2023 |
$16.23 |
| $0.15 |
| ($0.45) |
| ($0.30) |
| ($0.16) |
| ($0.88) |
| ($1.04) |
| $14.89 |
|
2022 |
18.93 |
| 0.18 |
| (0.92) |
| (0.74) |
| (0.16) |
| (1.80) |
| (1.96) |
| 16.23 |
|
2021 |
12.76 |
| 0.16 |
| 6.14 |
| 6.30 |
| (0.13) |
| – |
| (0.13) |
| 18.93 |
|
2020 |
14.27 |
| 0.12 |
| (0.95) |
| (0.83) |
| (0.11) |
| (0.57) |
| (0.68) |
| 12.76 |
|
2019(d) |
13.56 |
| 0.04 |
| 0.67 |
| 0.71 |
| – |
| – |
| – |
| 14.27 |
|
Class
J
shares |
|
|
|
|
|
|
| |
2023 |
16.06 |
| 0.18 |
| (0.45) |
| (0.27) |
| (0.19) |
| (0.88) |
| (1.07) |
| 14.72 |
|
2022 |
18.74 |
| 0.21 |
| (0.90) |
| (0.69) |
| (0.19) |
| (1.80) |
| (1.99) |
| 16.06 |
|
2021 |
12.65 |
| 0.19 |
| 6.08 |
| 6.27 |
| (0.18) |
| – |
| (0.18) |
| 18.74 |
|
2020 |
14.13 |
| 0.16 |
| (0.94) |
| (0.78) |
| (0.13) |
| (0.57) |
| (0.70) |
| 12.65 |
|
2019 |
14.44 |
| 0.13 |
| 1.09 |
| 1.22 |
| (0.09) |
| (1.44) |
| (1.53) |
| 14.13 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
16.29 |
| 0.22 |
| (0.46) |
| (0.24) |
| (0.22) |
| (0.88) |
| (1.10) |
| 14.95 |
|
2022 |
18.98 |
| 0.25 |
| (0.93) |
| (0.68) |
| (0.21) |
| (1.80) |
| (2.01) |
| 16.29 |
|
2021 |
12.81 |
| 0.22 |
| 6.16 |
| 6.38 |
| (0.21) |
| – |
| (0.21) |
| 18.98 |
|
2020 |
14.30 |
| 0.19 |
| (0.95) |
| (0.76) |
| (0.16) |
| (0.57) |
| (0.73) |
| 12.81 |
|
2019 |
14.62 |
| 0.18 |
| 1.07 |
| 1.25 |
| (0.13) |
| (1.44) |
| (1.57) |
| 14.30 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
15.39 |
| 0.08 |
| (0.42) |
| (0.34) |
| (0.10) |
| (0.88) |
| (0.98) |
| 14.07 |
|
2022 |
18.04 |
| 0.10 |
| (0.87) |
| (0.77) |
| (0.08) |
| (1.80) |
| (1.88) |
| 15.39 |
|
2021 |
12.20 |
| 0.08 |
| 5.86 |
| 5.94 |
| (0.10) |
| – |
| (0.10) |
| 18.04 |
|
2020 |
13.63 |
| 0.09 |
| (0.92) |
| (0.83) |
| (0.03) |
| (0.57) |
| (0.60) |
| 12.20 |
|
2019 |
13.96 |
| 0.06 |
| 1.05 |
| 1.11 |
| – |
| (1.44) |
| (1.44) |
| 13.63 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average
Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
(2.02) |
% |
(b) |
$40,844 |
| 1.12 |
% |
(c) |
– |
% |
| 0.93 |
% |
| 49.9 |
% |
(4.18) |
| (b) |
46,917 |
| 1.09 |
| (c) |
– |
|
| 1.06 |
|
| 51.1 |
|
49.69 |
| (b) |
42,833 |
| 1.10 |
| (c) |
– |
|
| 0.90 |
|
| 53.5 |
|
(6.32) |
| (b) |
23,187 |
| 1.27 |
| (c) |
– |
|
| 0.94 |
|
| 65.9 |
|
5.24 |
| (b),(e) |
26,083 |
| 1.38 |
| (c),(f) |
– |
|
| 0.51 |
| (f) |
60.0 |
|
|
|
|
|
|
|
|
|
| |
(1.85) |
| (b) |
162,873 |
| 0.90 |
| (g) |
0.94 |
| (h) |
1.16 |
|
| 49.9 |
|
(3.97) |
| (b) |
180,636 |
| 0.88 |
| (g) |
0.92 |
| (h) |
1.27 |
|
| 51.1 |
|
49.98 |
| (b) |
190,633 |
| 0.89 |
| (g) |
0.93 |
| (h) |
1.11 |
|
| 53.5 |
|
(6.00) |
| (b) |
129,288 |
| 0.94 |
| (g) |
0.99 |
| (h) |
1.28 |
|
| 65.9 |
|
10.55 |
| (b) |
153,602 |
| 1.06 |
| (g) |
1.13 |
| (h) |
0.95 |
|
| 60.0 |
|
|
|
|
|
|
|
|
|
| |
(1.64) |
|
| 1,076,199 |
| 0.69 |
| (c) |
– |
|
| 1.36 |
|
| 49.9 |
|
(3.82) |
|
| 1,106,800 |
| 0.69 |
| (c) |
– |
|
| 1.49 |
|
| 51.1 |
|
50.23 |
|
| 349,246 |
| 0.72 |
| (c) |
– |
|
| 1.29 |
|
| 53.5 |
|
(5.82) |
|
| 233,785 |
| 0.72 |
| (c) |
– |
|
| 1.49 |
|
| 65.9 |
|
10.73 |
|
| 279,888 |
| 0.85 |
| (c) |
– |
|
| 1.30 |
|
| 60.0 |
|
|
|
|
|
|
|
|
|
| |
(2.40) |
|
| 2,058 |
| 1.50 |
| (c) |
– |
|
| 0.56 |
|
| 49.9 |
|
(4.62) |
| (i) |
2,503 |
| 1.50 |
| (c) |
– |
|
| 0.65 |
|
| 51.1 |
|
49.03 |
| (i) |
2,687 |
| 1.51 |
| (c) |
– |
|
| 0.51 |
|
| 53.5 |
|
(6.53) |
|
| 2,079 |
| 1.51 |
| (c) |
– |
|
| 0.70 |
|
| 65.9 |
|
9.97 |
|
| 2,775 |
| 1.61 |
| (c) |
– |
|
| 0.43 |
|
| 60.0 |
|
(a)Calculated
based on average shares outstanding during the period.
(b)Total
return is calculated without the front-end sales charge or contingent deferred
sales charge, if applicable.
(c)Reflects
Manager's contractual expense limit.
(d)Period
from April 2, 2019, date operations commenced, through October 31,
2019.
(e)Total
return amounts have not been annualized.
(f)Computed
on an annualized basis.
(g)Reflects
Manager's contractual expense limit and/or Distributor's voluntary distribution
fee limit.
(h)Excludes
expense reimbursement from Manager and/or Distributor.
(i)Total
return is calculated using the traded net asset value which may differ from the
reported net asset value. The traded net asset value is the net asset value
which a shareholder would have paid or received from a subscription or
redemption.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
|
| |
|
Net
Asset
Value,
Beginning
of
Period |
Net
Investment
Income
(Loss)(a) |
Net
Realized
and
Unrealized
Gain
(Loss) on
Investments |
Total
From
Investment
Operations |
Dividends
from
Net
Investment Income |
Distributions
from
Realized Gains |
Total
Dividends
and Distributions |
Net
Asset
Value,
End
of Period |
MIDCAP
VALUE
FUND
I |
|
|
|
|
|
|
| |
R-3
shares |
|
|
|
|
|
|
| |
2023 |
$15.98 |
| $0.13 |
| ($0.44) |
| ($0.31) |
| ($0.14) |
| ($0.88) |
| ($1.02) |
| $14.65 |
|
2022 |
18.65 |
| 0.16 |
| (0.90) |
| (0.74) |
| (0.13) |
| (1.80) |
| (1.93) |
| 15.98 |
|
2021 |
12.60 |
| 0.14 |
| 6.05 |
| 6.19 |
| (0.14) |
| – |
| (0.14) |
| 18.65 |
|
2020 |
14.08 |
| 0.13 |
| (0.94) |
| (0.81) |
| (0.10) |
| (0.57) |
| (0.67) |
| 12.60 |
|
2019 |
14.37 |
| 0.10 |
| 1.09 |
| 1.19 |
| (0.04) |
| (1.44) |
| (1.48) |
| 14.08 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
16.04 |
| 0.16 |
| (0.44) |
| (0.28) |
| (0.17) |
| (0.88) |
| (1.05) |
| 14.71 |
|
2022 |
18.72 |
| 0.19 |
| (0.91) |
| (0.72) |
| (0.16) |
| (1.80) |
| (1.96) |
| 16.04 |
|
2021 |
12.64 |
| 0.17 |
| 6.08 |
| 6.25 |
| (0.17) |
| – |
| (0.17) |
| 18.72 |
|
2020 |
14.12 |
| 0.15 |
| (0.93) |
| (0.78) |
| (0.13) |
| (0.57) |
| (0.70) |
| 12.64 |
|
2019 |
14.42 |
| 0.13 |
| 1.08 |
| 1.21 |
| (0.07) |
| (1.44) |
| (1.51) |
| 14.12 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
16.16 |
| 0.18 |
| (0.45) |
| (0.27) |
| (0.19) |
| (0.88) |
| (1.07) |
| 14.82 |
|
2022 |
18.85 |
| 0.21 |
| (0.91) |
| (0.70) |
| (0.19) |
| (1.80) |
| (1.99) |
| 16.16 |
|
2021 |
12.72 |
| 0.19 |
| 6.12 |
| 6.31 |
| (0.18) |
| – |
| (0.18) |
| 18.85 |
|
2020 |
14.20 |
| 0.17 |
| (0.94) |
| (0.77) |
| (0.14) |
| (0.57) |
| (0.71) |
| 12.72 |
|
2019 |
14.50 |
| 0.14 |
| 1.09 |
| 1.23 |
| (0.09) |
| (1.44) |
| (1.53) |
| 14.20 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
16.33 |
| 0.23 |
| (0.45) |
| (0.22) |
| (0.23) |
| (0.88) |
| (1.11) |
| 15.00 |
|
2022 |
19.02 |
| 0.26 |
| (0.92) |
| (0.66) |
| (0.23) |
| (1.80) |
| (2.03) |
| 16.33 |
|
2021 |
12.84 |
| 0.24 |
| 6.16 |
| 6.40 |
| (0.22) |
| – |
| (0.22) |
| 19.02 |
|
2020 |
14.33 |
| 0.20 |
| (0.95) |
| (0.75) |
| (0.17) |
| (0.57) |
| (0.74) |
| 12.84 |
|
2019(d) |
13.56 |
| 0.11 |
| 0.66 |
| 0.77 |
| – |
| – |
| – |
| 14.33 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End of Period (in thousands) |
Ratio
of
Expenses
to
Average
Net Assets |
Ratio
of Net Investment Income
to
Average
Net
Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
(2.12) |
% |
| $10,065 |
| 1.19 |
% |
(b) |
0.86 |
% |
| 49.9 |
% |
(4.26) |
|
| 11,582 |
| 1.19 |
| (b) |
0.95 |
|
| 51.1 |
|
49.47 |
|
| 13,975 |
| 1.20 |
| (b) |
0.81 |
|
| 53.5 |
|
(6.24) |
|
| 10,736 |
| 1.20 |
| (b) |
1.01 |
|
| 65.9 |
|
10.33 |
|
| 13,305 |
| 1.30 |
| (b) |
0.74 |
|
| 60.0 |
|
|
|
|
|
|
|
| |
(1.94) |
|
| 7,946 |
| 1.00 |
| (b) |
1.05 |
|
| 49.9 |
|
(4.11) |
|
| 9,611 |
| 1.00 |
| (b) |
1.15 |
|
| 51.1 |
|
49.77 |
|
| 12,292 |
| 1.01 |
| (b) |
1.00 |
|
| 53.5 |
|
(6.04) |
|
| 9,285 |
| 1.01 |
| (b) |
1.21 |
|
| 65.9 |
|
10.49 |
|
| 13,340 |
| 1.11 |
| (b) |
0.93 |
|
| 60.0 |
|
|
|
|
|
|
|
| |
(1.82) |
|
| 28,298 |
| 0.88 |
| (b) |
1.17 |
|
| 49.9 |
|
(4.00) |
|
| 28,272 |
| 0.88 |
| (b) |
1.27 |
|
| 51.1 |
|
50.02 |
|
| 29,746 |
| 0.89 |
| (b) |
1.12 |
|
| 53.5 |
|
(5.96) |
|
| 21,576 |
| 0.89 |
| (b) |
1.33 |
|
| 65.9 |
|
10.63 |
|
| 29,270 |
| 0.99 |
| (b) |
1.06 |
|
| 60.0 |
|
|
|
|
|
|
|
| |
(1.51) |
|
| 2,089,882 |
| 0.62 |
| (b) |
1.43 |
|
| 49.9 |
|
(3.78) |
| (c) |
2,249,267 |
| 0.62 |
| (b) |
1.53 |
|
| 51.1 |
|
50.41 |
| (c) |
2,312,305 |
| 0.63 |
| (b) |
1.38 |
|
| 53.5 |
|
(5.73) |
|
| 1,696,270 |
| 0.64 |
| (b) |
1.58 |
|
| 65.9 |
|
5.68 |
| (e) |
1,980,217 |
| 0.64 |
| (b),(f) |
1.33 |
| (f) |
60.0 |
|
(a)Calculated
based on average shares outstanding during the period.
(b)Reflects
Manager's contractual expense limit.
(c)Total
return is calculated using the traded net asset value which may differ from the
reported net asset value. The traded net asset value is the net asset value
which a shareholder would have paid or received from a subscription or
redemption.
(d)Period
from April 2, 2019, date operations commenced, through October 31,
2019.
(e)Total
return amounts have not been annualized.
(f)Computed
on an annualized basis.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
| |
|
Net
Asset
Value,
Beginning
of Period |
Net
Investment
Income
(Loss)(a) |
Total
From
Investment
Operations |
Dividends
from
Net
Investment Income |
Total
Dividends
and
Distributions |
Net
Asset
Value,
End of
Period |
MONEY
MARKET
FUND |
|
|
|
|
| |
Class
A
shares |
|
|
|
|
| |
2023 |
$1.00 |
| $0.04 |
| $0.04 |
| ($0.04) |
| ($0.04) |
| $1.00 |
|
2022 |
1.00 |
| 0.01 |
| 0.01 |
| (0.01) |
| (0.01) |
| 1.00 |
|
2021 |
1.00 |
| – |
| – |
| – |
| – |
| 1.00 |
|
2020 |
1.00 |
| 0.01 |
| 0.01 |
| (0.01) |
| (0.01) |
| 1.00 |
|
2019 |
1.00 |
| 0.02 |
| 0.02 |
| (0.02) |
| (0.02) |
| 1.00 |
|
Class
J
shares |
|
|
|
|
| |
2023 |
1.00 |
| 0.04 |
| 0.04 |
| (0.04) |
| (0.04) |
| 1.00 |
|
2022 |
1.00 |
| 0.01 |
| 0.01 |
| (0.01) |
| (0.01) |
| 1.00 |
|
2021 |
1.00 |
| – |
| – |
| – |
| – |
| 1.00 |
|
2020 |
1.00 |
| 0.01 |
| 0.01 |
| (0.01) |
| (0.01) |
| 1.00 |
|
2019 |
1.00 |
| 0.02 |
| 0.02 |
| (0.02) |
| (0.02) |
| 1.00 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End of Period (in thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average
Net
Assets |
Ratio
of Net Investment Income
to
Average
Net
Assets |
|
|
|
|
|
|
| |
|
|
|
|
|
|
| |
4.53 |
% |
(b) |
$341,831 |
| 0.49 |
% |
(c) |
0.49 |
% |
(d) |
4.43 |
% |
0.63 |
| (b) |
352,832 |
| 0.50 |
| (c) |
0.54 |
| (d) |
0.67 |
|
0.00 |
| (b) |
293,949 |
| 0.12 |
| (c) |
0.55 |
| (d) |
0.00 |
|
0.61 |
| (b) |
342,008 |
| 0.39 |
| (c) |
0.53 |
| (d) |
0.54 |
|
1.98 |
| (b) |
242,127 |
| 0.50 |
| (c) |
0.60 |
| (d) |
1.94 |
|
|
|
|
|
|
|
| |
4.58 |
| (b) |
654,501 |
| 0.45 |
| (e) |
0.60 |
| (f) |
4.48 |
|
0.64 |
| (b) |
625,829 |
| 0.49 |
| (e) |
0.64 |
| (f) |
0.76 |
|
0.00 |
| (b) |
411,033 |
| 0.12 |
| (e) |
0.66 |
| (f) |
0.00 |
|
0.58 |
| (b) |
455,689 |
| 0.41 |
| (e) |
0.68 |
| (f) |
0.49 |
|
1.88 |
| (b) |
278,464 |
| 0.60 |
| (e) |
0.75 |
| (f) |
1.84 |
|
(a)Calculated
based on average shares outstanding during the period.
(b)Total
return is calculated without the front-end sales charge or contingent deferred
sales charge, if applicable.
(c)Reflects
Manager's contractual and/or voluntary expense limit.
(d)Excludes
expense reimbursement from Manager.
(e)Reflects
Manager's contractual and voluntary expense limit and/or Distributor's
contractual distribution fee limit.
(f)Excludes
expense reimbursement from Manager and/or Distributor.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
OVERSEAS
FUND |
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
$8.90 |
| $0.30 |
| $1.59 |
| $1.89 |
| ($0.23) |
| ($0.53) |
| ($0.76) |
| $10.03 |
|
2022 |
11.44 |
| 0.26 |
| (1.98) |
| (1.72) |
| (0.28) |
| (0.54) |
| (0.82) |
| 8.90 |
|
2021 |
8.12 |
| 0.20 |
| 3.31 |
| 3.51 |
| (0.19) |
| – |
| (0.19) |
| 11.44 |
|
2020 |
9.69 |
| 0.18 |
| (1.44) |
| (1.26) |
| (0.31) |
| – |
| (0.31) |
| 8.12 |
|
2019 |
10.12 |
| 0.28 |
| 0.14 |
| 0.42 |
| (0.24) |
| (0.61) |
| (0.85) |
| 9.69 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
8.78 |
| 0.24 |
| 1.57 |
| 1.81 |
| (0.18) |
| (0.53) |
| (0.71) |
| 9.88 |
|
2022 |
11.30 |
| 0.20 |
| (1.96) |
| (1.76) |
| (0.22) |
| (0.54) |
| (0.76) |
| 8.78 |
|
2021 |
8.02 |
| 0.14 |
| 3.27 |
| 3.41 |
| (0.13) |
| – |
| (0.13) |
| 11.30 |
|
2020 |
9.58 |
| 0.13 |
| (1.43) |
| (1.30) |
| (0.26) |
| – |
| (0.26) |
| 8.02 |
|
2019 |
10.00 |
| 0.23 |
| 0.14 |
| 0.37 |
| (0.18) |
| (0.61) |
| (0.79) |
| 9.58 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
8.84 |
| 0.26 |
| 1.58 |
| 1.84 |
| (0.20) |
| (0.53) |
| (0.73) |
| 9.95 |
|
2022 |
11.36 |
| 0.23 |
| (1.98) |
| (1.75) |
| (0.23) |
| (0.54) |
| (0.77) |
| 8.84 |
|
2021 |
8.07 |
| 0.16 |
| 3.29 |
| 3.45 |
| (0.16) |
| – |
| (0.16) |
| 11.36 |
|
2020 |
9.64 |
| 0.15 |
| (1.45) |
| (1.30) |
| (0.27) |
| – |
| (0.27) |
| 8.07 |
|
2019 |
10.06 |
| 0.24 |
| 0.16 |
| 0.40 |
| (0.21) |
| (0.61) |
| (0.82) |
| 9.64 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
| |
|
|
|
|
| |
22.01 |
% |
$2,143,073 |
| 0.97 |
% |
(b) |
2.86 |
% |
59.3 |
% |
(16.05) |
| 1,703,672 |
| 0.97 |
| (b) |
2.56 |
| 62.2 |
|
43.48 |
| 2,927,281 |
| 0.94 |
| (b) |
1.79 |
| 54.8 |
|
(13.63) |
| 2,314,374 |
| 0.96 |
| (b) |
2.07 |
| 79.6 |
|
5.38 |
| 2,580,956 |
| 1.04 |
| (b) |
2.95 |
| 47.8 |
|
|
|
|
|
| |
21.27 |
| 717 |
| 1.52 |
| (b) |
2.31 |
| 59.3 |
|
(16.52) |
| 464 |
| 1.52 |
| (b) |
2.01 |
| 62.2 |
|
42.73 |
| 604 |
| 1.49 |
| (b) |
1.29 |
| 54.8 |
|
(14.13) |
| 407 |
| 1.51 |
| (b) |
1.52 |
| 79.6 |
|
4.82 |
| 499 |
| 1.60 |
| (b) |
2.48 |
| 47.8 |
|
|
|
|
|
| |
21.52 |
| 859 |
| 1.33 |
| (b) |
2.54 |
| 59.3 |
|
(16.30) |
| 545 |
| 1.33 |
| (b) |
2.27 |
| 62.2 |
|
42.95 |
| 608 |
| 1.30 |
| (b) |
1.44 |
| 54.8 |
|
(13.99) |
| 481 |
| 1.32 |
| (b) |
1.70 |
| 79.6 |
|
5.05 |
| 530 |
| 1.41 |
| (b) |
2.57 |
| 47.8 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
CAPITAL APPRECIATION FUND |
Class
A shares |
|
|
|
|
|
|
| |
2023 |
$53.59 |
| $0.44 |
| $4.75 |
| $5.19 |
| ($0.37) |
| $– |
| ($0.37) |
| $58.41 |
|
2022 |
68.28 |
| 0.38 |
| (8.95) |
| (8.57) |
| (0.27) |
| (5.85) |
| (6.12) |
| 53.59 |
|
2021 |
51.30 |
| 0.36 |
| 19.57 |
| 19.93 |
| (0.43) |
| (2.52) |
| (2.95) |
| 68.28 |
|
2020 |
50.56 |
| 0.42 |
| 4.45 |
| 4.87 |
| (0.46) |
| (3.67) |
| (4.13) |
| 51.30 |
|
2019 |
63.24 |
| 0.53 |
| 5.65 |
| 6.18 |
| (0.66) |
| (18.20) |
| (18.86) |
| 50.56 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
55.67 |
| 0.64 |
| 4.93 |
| 5.57 |
| (0.55) |
| – |
| (0.55) |
| 60.69 |
|
2022 |
70.67 |
| 0.57 |
| (9.26) |
| (8.69) |
| (0.46) |
| (5.85) |
| (6.31) |
| 55.67 |
|
2021 |
53.00 |
| 0.57 |
| 20.22 |
| 20.79 |
| (0.60) |
| (2.52) |
| (3.12) |
| 70.67 |
|
2020 |
52.09 |
| 0.61 |
| 4.60 |
| 5.21 |
| (0.63) |
| (3.67) |
| (4.30) |
| 53.00 |
|
2019 |
64.54 |
| 0.74 |
| 5.84 |
| 6.58 |
| (0.83) |
| (18.20) |
| (19.03) |
| 52.09 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
53.35 |
| 0.14 |
| 4.75 |
| 4.89 |
| (0.09) |
| – |
| (0.09) |
| 58.15 |
|
2022 |
68.09 |
| 0.06 |
| (8.95) |
| (8.89) |
| – |
| (5.85) |
| (5.85) |
| 53.35 |
|
2021 |
51.14 |
| 0.04 |
| 19.53 |
| 19.57 |
| (0.10) |
| (2.52) |
| (2.62) |
| 68.09 |
|
2020 |
50.41 |
| 0.16 |
| 4.43 |
| 4.59 |
| (0.19) |
| (3.67) |
| (3.86) |
| 51.14 |
|
2019 |
63.08 |
| 0.29 |
| 5.65 |
| 5.94 |
| (0.41) |
| (18.20) |
| (18.61) |
| 50.41 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
53.61 |
| 0.30 |
| 4.77 |
| 5.07 |
| (0.23) |
| – |
| (0.23) |
| 58.45 |
|
2022 |
68.37 |
| 0.24 |
| (8.98) |
| (8.74) |
| (0.17) |
| (5.85) |
| (6.02) |
| 53.61 |
|
2021 |
51.37 |
| 0.21 |
| 19.62 |
| 19.83 |
| (0.31) |
| (2.52) |
| (2.83) |
| 68.37 |
|
2020 |
50.62 |
| 0.31 |
| 4.45 |
| 4.76 |
| (0.34) |
| (3.67) |
| (4.01) |
| 51.37 |
|
2019 |
63.23 |
| 0.44 |
| 5.66 |
| 6.10 |
| (0.51) |
| (18.20) |
| (18.71) |
| 50.62 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
54.49 |
| 0.42 |
| 4.84 |
| 5.26 |
| (0.34) |
| – |
| (0.34) |
| 59.41 |
|
2022 |
69.31 |
| 0.36 |
| (9.11) |
| (8.75) |
| (0.22) |
| (5.85) |
| (6.07) |
| 54.49 |
|
2021 |
52.03 |
| 0.36 |
| 19.84 |
| 20.20 |
| (0.40) |
| (2.52) |
| (2.92) |
| 69.31 |
|
2020 |
51.23 |
| 0.41 |
| 4.51 |
| 4.92 |
| (0.45) |
| (3.67) |
| (4.12) |
| 52.03 |
|
2019 |
63.79 |
| 0.54 |
| 5.74 |
| 6.28 |
| (0.64) |
| (18.20) |
| (18.84) |
| 51.23 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
54.88 |
| 0.49 |
| 4.87 |
| 5.36 |
| (0.41) |
| – |
| (0.41) |
| 59.83 |
|
2022 |
69.77 |
| 0.43 |
| (9.17) |
| (8.74) |
| (0.30) |
| (5.85) |
| (6.15) |
| 54.88 |
|
2021 |
52.35 |
| 0.42 |
| 19.98 |
| 20.40 |
| (0.46) |
| (2.52) |
| (2.98) |
| 69.77 |
|
2020 |
51.51 |
| 0.47 |
| 4.54 |
| 5.01 |
| (0.50) |
| (3.67) |
| (4.17) |
| 52.35 |
|
2019 |
64.05 |
| 0.60 |
| 5.76 |
| 6.36 |
| (0.70) |
| (18.20) |
| (18.90) |
| 51.51 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
| |
|
|
|
|
|
| |
9.75 |
% |
(b) |
$1,085,264 |
| 0.78 |
% |
| 0.76 |
% |
48.2 |
% |
(13.77) |
| (b),(c) |
1,037,510 |
| 0.77 |
|
| 0.66 |
| 49.5 |
|
40.26 |
| (b),(c) |
1,288,915 |
| 0.80 |
|
| 0.59 |
| 29.9 |
|
10.04 |
| (b),(c) |
987,963 |
| 0.83 |
|
| 0.86 |
| 35.4 |
|
17.38 |
| (b) |
993,244 |
| 0.86 |
|
| 1.10 |
| 35.4 |
|
|
|
|
|
|
| |
10.12 |
|
| 2,351,308 |
| 0.46 |
|
| 1.07 |
| 48.2 |
|
(13.51) |
| (c) |
2,022,614 |
| 0.46 |
|
| 0.97 |
| 49.5 |
|
40.71 |
| (c) |
961,957 |
| 0.49 |
| (d) |
0.90 |
| 29.9 |
|
10.42 |
|
| 717,175 |
| 0.47 |
| (d) |
1.21 |
| 35.4 |
|
17.85 |
|
| 683,345 |
| 0.47 |
| (d) |
1.49 |
| 35.4 |
|
|
|
|
|
|
| |
9.18 |
|
| 1,095 |
| 1.32 |
|
| 0.24 |
| 48.2 |
|
(14.25) |
| (c) |
1,343 |
| 1.32 |
|
| 0.11 |
| 49.5 |
|
39.51 |
| (c) |
1,653 |
| 1.35 |
|
| 0.06 |
| 29.9 |
|
9.44 |
|
| 1,653 |
| 1.37 |
|
| 0.33 |
| 35.4 |
|
16.78 |
|
| 1,828 |
| 1.37 |
|
| 0.61 |
| 35.4 |
|
|
|
|
|
|
| |
9.51 |
|
| 24,142 |
| 1.01 |
|
| 0.52 |
| 48.2 |
|
(13.98) |
|
| 19,275 |
| 1.01 |
|
| 0.42 |
| 49.5 |
|
39.94 |
|
| 20,459 |
| 1.04 |
|
| 0.35 |
| 29.9 |
|
9.76 |
|
| 14,150 |
| 1.06 |
|
| 0.64 |
| 35.4 |
|
17.15 |
|
| 16,017 |
| 1.06 |
|
| 0.91 |
| 35.4 |
|
|
|
|
|
|
| |
9.71 |
|
| 9,048 |
| 0.82 |
|
| 0.71 |
| 48.2 |
|
(13.83) |
| (c) |
8,365 |
| 0.82 |
|
| 0.61 |
| 49.5 |
|
40.22 |
| (c) |
10,333 |
| 0.85 |
|
| 0.59 |
| 29.9 |
|
9.98 |
|
| 13,402 |
| 0.87 |
|
| 0.84 |
| 35.4 |
|
17.38 |
|
| 16,878 |
| 0.87 |
|
| 1.10 |
| 35.4 |
|
|
|
|
|
|
| |
9.85 |
|
| 31,171 |
| 0.70 |
|
| 0.83 |
| 48.2 |
|
(13.72) |
|
| 27,542 |
| 0.70 |
|
| 0.73 |
| 49.5 |
|
40.37 |
|
| 33,672 |
| 0.73 |
|
| 0.68 |
| 29.9 |
|
10.11 |
|
| 32,567 |
| 0.75 |
|
| 0.95 |
| 35.4 |
|
17.51 |
|
| 34,786 |
| 0.75 |
|
| 1.22 |
| 35.4 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which a shareholder would have paid or received from a subscription or
redemption.
(d)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME 2015 FUND |
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
$8.28 |
| $0.24 |
| $0.07 |
| $0.31 |
| ($0.22) |
| ($0.41) |
| ($0.63) |
| $7.96 |
|
2022 |
10.57 |
| 0.29 |
| (1.78) |
| (1.49) |
| (0.26) |
| (0.54) |
| (0.80) |
| 8.28 |
|
2021 |
9.66 |
| 0.20 |
| 1.26 |
| 1.46 |
| (0.20) |
| (0.35) |
| (0.55) |
| 10.57 |
|
2020 |
10.26 |
| 0.22 |
| 0.37 |
| 0.59 |
| (0.23) |
| (0.96) |
| (1.19) |
| 9.66 |
|
2019 |
10.18 |
| 0.29 |
| 0.66 |
| 0.95 |
| (0.28) |
| (0.59) |
| (0.87) |
| 10.26 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
8.00 |
| 0.17 |
| 0.06 |
| 0.23 |
| (0.15) |
| (0.41) |
| (0.56) |
| 7.67 |
|
2022 |
10.22 |
| 0.20 |
| (1.72) |
| (1.52) |
| (0.16) |
| (0.54) |
| (0.70) |
| 8.00 |
|
2021 |
9.35 |
| 0.10 |
| 1.23 |
| 1.33 |
| (0.11) |
| (0.35) |
| (0.46) |
| 10.22 |
|
2020 |
9.97 |
| 0.14 |
| 0.35 |
| 0.49 |
| (0.15) |
| (0.96) |
| (1.11) |
| 9.35 |
|
2019 |
9.90 |
| 0.19 |
| 0.65 |
| 0.84 |
| (0.18) |
| (0.59) |
| (0.77) |
| 9.97 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
8.02 |
| 0.19 |
| 0.07 |
| 0.26 |
| (0.17) |
| (0.41) |
| (0.58) |
| 7.70 |
|
2022 |
10.25 |
| 0.23 |
| (1.72) |
| (1.49) |
| (0.20) |
| (0.54) |
| (0.74) |
| 8.02 |
|
2021 |
9.38 |
| 0.14 |
| 1.22 |
| 1.36 |
| (0.14) |
| (0.35) |
| (0.49) |
| 10.25 |
|
2020 |
10.00 |
| 0.16 |
| 0.36 |
| 0.52 |
| (0.18) |
| (0.96) |
| (1.14) |
| 9.38 |
|
2019 |
9.93 |
| 0.22 |
| 0.66 |
| 0.88 |
| (0.22) |
| (0.59) |
| (0.81) |
| 10.00 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
8.11 |
| 0.21 |
| 0.06 |
| 0.27 |
| (0.18) |
| (0.41) |
| (0.59) |
| 7.79 |
|
2022 |
10.37 |
| 0.25 |
| (1.75) |
| (1.50) |
| (0.22) |
| (0.54) |
| (0.76) |
| 8.11 |
|
2021 |
9.48 |
| 0.16 |
| 1.24 |
| 1.40 |
| (0.16) |
| (0.35) |
| (0.51) |
| 10.37 |
|
2020 |
10.10 |
| 0.19 |
| 0.35 |
| 0.54 |
| (0.20) |
| (0.96) |
| (1.16) |
| 9.48 |
|
2019 |
10.02 |
| 0.25 |
| 0.66 |
| 0.91 |
| (0.24) |
| (0.59) |
| (0.83) |
| 10.10 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
8.13 |
| 0.22 |
| 0.06 |
| 0.28 |
| (0.20) |
| (0.41) |
| (0.61) |
| 7.80 |
|
2022 |
10.39 |
| 0.27 |
| (1.76) |
| (1.49) |
| (0.23) |
| (0.54) |
| (0.77) |
| 8.13 |
|
2021 |
9.50 |
| 0.17 |
| 1.24 |
| 1.41 |
| (0.17) |
| (0.35) |
| (0.52) |
| 10.39 |
|
2020 |
10.11 |
| 0.19 |
| 0.36 |
| 0.55 |
| (0.20) |
| (0.96) |
| (1.16) |
| 9.50 |
|
2019 |
10.04 |
| 0.26 |
| 0.66 |
| 0.92 |
| (0.26) |
| (0.59) |
| (0.85) |
| 10.11 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| |
Total
Return |
| Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
| |
|
|
|
|
| |
3.80 |
% |
| $204,780 |
| 0.02 |
% |
2.98 |
% |
14.5 |
% |
(15.15) |
|
| 223,930 |
| 0.02 |
| 3.16 |
| 29.2 |
|
15.48 |
|
| 304,277 |
| 0.02 |
| 1.91 |
| 28.3 |
|
6.20 |
|
| 273,028 |
| 0.02 |
| 2.30 |
| 31.2 |
|
10.48 |
|
| 291,875 |
| 0.02 |
| 2.95 |
| 37.5 |
|
|
|
|
|
| |
2.83 |
|
| 1,379 |
| 0.89 |
| 2.17 |
| 14.5 |
|
(15.90) |
| (b) |
2,042 |
| 0.89 |
| 2.29 |
| 29.2 |
|
14.62 |
| (b) |
2,611 |
| 0.89 |
| 1.06 |
| 28.3 |
|
5.21 |
|
| 3,288 |
| 0.89 |
| 1.49 |
| 31.2 |
|
9.44 |
|
| 3,645 |
| 0.89 |
| 1.99 |
| 37.5 |
|
|
|
|
|
| |
3.21 |
|
| 16,887 |
| 0.58 |
| 2.41 |
| 14.5 |
|
(15.57) |
|
| 19,212 |
| 0.58 |
| 2.64 |
| 29.2 |
|
14.85 |
|
| 28,808 |
| 0.58 |
| 1.38 |
| 28.3 |
|
5.52 |
|
| 31,339 |
| 0.58 |
| 1.76 |
| 31.2 |
|
9.89 |
|
| 36,399 |
| 0.58 |
| 2.31 |
| 37.5 |
|
|
|
|
|
| |
3.41 |
|
| 7,157 |
| 0.39 |
| 2.64 |
| 14.5 |
|
(15.51) |
|
| 7,376 |
| 0.39 |
| 2.82 |
| 29.2 |
|
15.11 |
|
| 12,547 |
| 0.39 |
| 1.58 |
| 28.3 |
|
5.69 |
|
| 14,286 |
| 0.39 |
| 2.03 |
| 31.2 |
|
10.11 |
|
| 18,317 |
| 0.39 |
| 2.54 |
| 37.5 |
|
|
|
|
|
| |
3.44 |
|
| 17,102 |
| 0.27 |
| 2.74 |
| 14.5 |
|
(15.35) |
|
| 18,499 |
| 0.27 |
| 2.97 |
| 29.2 |
|
15.25 |
|
| 26,565 |
| 0.27 |
| 1.67 |
| 28.3 |
|
5.86 |
|
| 28,376 |
| 0.27 |
| 2.08 |
| 31.2 |
|
10.21 |
|
| 30,810 |
| 0.27 |
| 2.72 |
| 37.5 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which a shareholder would have paid or received from a subscription or
redemption.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME 2020 FUND |
Class
A shares |
|
|
|
|
|
|
| |
2023 |
$12.14 |
| $0.29 |
| $0.14 |
| $0.43 |
| ($0.25) |
| ($0.80) |
| ($1.05) |
| $11.52 |
|
2022 |
15.80 |
| 0.38 |
| (2.74) |
| (2.36) |
| (0.33) |
| (0.97) |
| (1.30) |
| 12.14 |
|
2021 |
14.07 |
| 0.23 |
| 2.30 |
| 2.53 |
| (0.23) |
| (0.57) |
| (0.80) |
| 15.80 |
|
2020 |
14.43 |
| 0.26 |
| 0.52 |
| 0.78 |
| (0.27) |
| (0.87) |
| (1.14) |
| 14.07 |
|
2019 |
13.92 |
| 0.31 |
| 1.07 |
| 1.38 |
| (0.30) |
| (0.57) |
| (0.87) |
| 14.43 |
|
Class
J shares |
|
|
|
|
|
|
| |
2023 |
11.96 |
| 0.31 |
| 0.14 |
| 0.45 |
| (0.28) |
| (0.80) |
| (1.08) |
| 11.33 |
|
2022 |
15.59 |
| 0.41 |
| (2.72) |
| (2.31) |
| (0.35) |
| (0.97) |
| (1.32) |
| 11.96 |
|
2021 |
13.89 |
| 0.25 |
| 2.28 |
| 2.53 |
| (0.26) |
| (0.57) |
| (0.83) |
| 15.59 |
|
2020 |
14.26 |
| 0.29 |
| 0.50 |
| 0.79 |
| (0.29) |
| (0.87) |
| (1.16) |
| 13.89 |
|
2019 |
13.78 |
| 0.34 |
| 1.04 |
| 1.38 |
| (0.33) |
| (0.57) |
| (0.90) |
| 14.26 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
12.06 |
| 0.33 |
| 0.14 |
| 0.47 |
| (0.30) |
| (0.80) |
| (1.10) |
| 11.43 |
|
2022 |
15.70 |
| 0.44 |
| (2.73) |
| (2.29) |
| (0.38) |
| (0.97) |
| (1.35) |
| 12.06 |
|
2021 |
13.99 |
| 0.28 |
| 2.28 |
| 2.56 |
| (0.28) |
| (0.57) |
| (0.85) |
| 15.70 |
|
2020 |
14.35 |
| 0.31 |
| 0.52 |
| 0.83 |
| (0.32) |
| (0.87) |
| (1.19) |
| 13.99 |
|
2019 |
13.86 |
| 0.37 |
| 1.04 |
| 1.41 |
| (0.35) |
| (0.57) |
| (0.92) |
| 14.35 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
11.95 |
| 0.23 |
| 0.14 |
| 0.37 |
| (0.19) |
| (0.80) |
| (0.99) |
| 11.33 |
|
2022 |
15.56 |
| 0.31 |
| (2.71) |
| (2.40) |
| (0.24) |
| (0.97) |
| (1.21) |
| 11.95 |
|
2021 |
13.86 |
| 0.15 |
| 2.27 |
| 2.42 |
| (0.15) |
| (0.57) |
| (0.72) |
| 15.56 |
|
2020 |
14.22 |
| 0.19 |
| 0.50 |
| 0.69 |
| (0.18) |
| (0.87) |
| (1.05) |
| 13.86 |
|
2019 |
13.71 |
| 0.27 |
| 1.02 |
| 1.29 |
| (0.21) |
| (0.57) |
| (0.78) |
| 14.22 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
11.89 |
| 0.26 |
| 0.14 |
| 0.40 |
| (0.22) |
| (0.80) |
| (1.02) |
| 11.27 |
|
2022 |
15.49 |
| 0.36 |
| (2.70) |
| (2.34) |
| (0.29) |
| (0.97) |
| (1.26) |
| 11.89 |
|
2021 |
13.82 |
| 0.19 |
| 2.25 |
| 2.44 |
| (0.20) |
| (0.57) |
| (0.77) |
| 15.49 |
|
2020 |
14.18 |
| 0.23 |
| 0.51 |
| 0.74 |
| (0.23) |
| (0.87) |
| (1.10) |
| 13.82 |
|
2019 |
13.69 |
| 0.29 |
| 1.03 |
| 1.32 |
| (0.26) |
| (0.57) |
| (0.83) |
| 14.18 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
11.94 |
| 0.29 |
| 0.14 |
| 0.43 |
| (0.25) |
| (0.80) |
| (1.05) |
| 11.32 |
|
2022 |
15.55 |
| 0.39 |
| (2.71) |
| (2.32) |
| (0.32) |
| (0.97) |
| (1.29) |
| 11.94 |
|
2021 |
13.86 |
| 0.23 |
| 2.26 |
| 2.49 |
| (0.23) |
| (0.57) |
| (0.80) |
| 15.55 |
|
2020 |
14.22 |
| 0.28 |
| 0.49 |
| 0.77 |
| (0.26) |
| (0.87) |
| (1.13) |
| 13.86 |
|
2019 |
13.73 |
| 0.35 |
| 1.00 |
| 1.35 |
| (0.29) |
| (0.57) |
| (0.86) |
| 14.22 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
11.97 |
| 0.31 |
| 0.13 |
| 0.44 |
| (0.26) |
| (0.80) |
| (1.06) |
| 11.35 |
|
2022 |
15.60 |
| 0.40 |
| (2.72) |
| (2.32) |
| (0.34) |
| (0.97) |
| (1.31) |
| 11.97 |
|
2021 |
13.90 |
| 0.24 |
| 2.28 |
| 2.52 |
| (0.25) |
| (0.57) |
| (0.82) |
| 15.60 |
|
2020 |
14.26 |
| 0.28 |
| 0.51 |
| 0.79 |
| (0.28) |
| (0.87) |
| (1.15) |
| 13.90 |
|
2019 |
13.77 |
| 0.33 |
| 1.04 |
| 1.37 |
| (0.31) |
| (0.57) |
| (0.88) |
| 14.26 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Gross Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
3.73 |
% |
(b) |
$81,249 |
| 0.38 |
% |
| – |
% |
| 2.44 |
% |
9.8 |
% |
(16.17) |
| (b) |
88,607 |
| 0.36 |
| (c) |
– |
|
| 2.84 |
| 25.2 |
|
18.52 |
| (b) |
112,642 |
| 0.35 |
| (c) |
– |
|
| 1.50 |
| 19.6 |
|
5.58 |
| (b) |
100,919 |
| 0.36 |
| (c) |
– |
|
| 1.89 |
| 21.7 |
|
10.78 |
| (b) |
102,763 |
| 0.38 |
| (c) |
– |
|
| 2.27 |
| 34.2 |
|
|
|
|
|
|
|
|
| |
3.91 |
| (b) |
640,253 |
| 0.16 |
| (d) |
0.18 |
| (e) |
2.64 |
| 9.8 |
|
(16.05) |
| (b) |
679,727 |
| 0.17 |
| (d) |
0.19 |
| (e) |
3.06 |
| 25.2 |
|
18.69 |
| (b),(f) |
910,454 |
| 0.18 |
| (d) |
0.20 |
| (e) |
1.68 |
| 19.6 |
|
5.86 |
| (b),(f) |
832,258 |
| 0.16 |
| (d) |
0.19 |
| (e) |
2.12 |
| 21.7 |
|
10.94 |
| (b) |
880,475 |
| 0.17 |
| (d) |
0.20 |
| (e) |
2.47 |
| 34.2 |
|
|
|
|
|
|
|
|
| |
4.07 |
|
| 1,427,262 |
| 0.01 |
|
| – |
|
| 2.82 |
| 9.8 |
|
(15.85) |
|
| 1,640,911 |
| 0.01 |
|
| – |
|
| 3.25 |
| 25.2 |
|
18.87 |
|
| 2,424,308 |
| 0.01 |
|
| – |
|
| 1.86 |
| 19.6 |
|
5.99 |
|
| 2,298,787 |
| 0.01 |
|
| – |
|
| 2.28 |
| 21.7 |
|
11.15 |
|
| 2,553,165 |
| 0.01 |
|
| – |
|
| 2.74 |
| 34.2 |
|
|
|
|
|
|
|
|
| |
3.18 |
|
| 11,131 |
| 0.88 |
|
| – |
|
| 1.91 |
| 9.8 |
|
(16.60) |
|
| 11,554 |
| 0.88 |
|
| – |
|
| 2.32 |
| 25.2 |
|
17.81 |
| (f) |
15,645 |
| 0.88 |
|
| – |
|
| 0.98 |
| 19.6 |
|
5.09 |
| (f) |
17,992 |
| 0.88 |
|
| – |
|
| 1.42 |
| 21.7 |
|
10.22 |
|
| 20,527 |
| 0.88 |
|
| – |
|
| 1.97 |
| 34.2 |
|
|
|
|
|
|
|
|
| |
3.51 |
|
| 62,249 |
| 0.57 |
|
| – |
|
| 2.26 |
| 9.8 |
|
(16.37) |
| (f) |
77,582 |
| 0.57 |
|
| – |
|
| 2.69 |
| 25.2 |
|
18.24 |
| (f) |
112,088 |
| 0.57 |
|
| – |
|
| 1.30 |
| 19.6 |
|
5.42 |
|
| 110,479 |
| 0.57 |
|
| – |
|
| 1.74 |
| 21.7 |
|
10.51 |
|
| 127,255 |
| 0.57 |
|
| – |
|
| 2.16 |
| 34.2 |
|
|
|
|
|
|
|
|
| |
3.72 |
|
| 25,028 |
| 0.38 |
|
| – |
|
| 2.44 |
| 9.8 |
|
(16.17) |
|
| 31,027 |
| 0.38 |
|
| – |
|
| 2.90 |
| 25.2 |
|
18.44 |
|
| 48,132 |
| 0.38 |
|
| – |
|
| 1.50 |
| 19.6 |
|
5.57 |
|
| 47,227 |
| 0.38 |
|
| – |
|
| 2.09 |
| 21.7 |
|
10.74 |
|
| 73,232 |
| 0.38 |
|
| – |
|
| 2.57 |
| 34.2 |
|
|
|
|
|
|
|
|
| |
3.88 |
|
| 85,830 |
| 0.26 |
|
| – |
|
| 2.60 |
| 9.8 |
|
(16.13) |
|
| 103,555 |
| 0.26 |
|
| – |
|
| 3.02 |
| 25.2 |
|
18.62 |
|
| 154,635 |
| 0.26 |
|
| – |
|
| 1.63 |
| 19.6 |
|
5.73 |
|
| 158,936 |
| 0.26 |
|
| – |
|
| 2.05 |
| 21.7 |
|
10.90 |
|
| 194,723 |
| 0.26 |
|
| – |
|
| 2.44 |
| 34.2 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit.
(d)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(e)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(f)Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which a shareholder would have paid or received from a subscription or
redemption.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME 2025 FUND |
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
$10.47 |
| $0.27 |
| $0.18 |
| $0.45 |
| ($0.24) |
| ($0.55) |
| ($0.79) |
| $10.13 |
|
2022 |
13.55 |
| 0.37 |
| (2.48) |
| (2.11) |
| (0.33) |
| (0.64) |
| (0.97) |
| 10.47 |
|
2021 |
11.64 |
| 0.23 |
| 2.33 |
| 2.56 |
| (0.23) |
| (0.42) |
| (0.65) |
| 13.55 |
|
2020 |
11.75 |
| 0.24 |
| 0.43 |
| 0.67 |
| (0.25) |
| (0.53) |
| (0.78) |
| 11.64 |
|
2019 |
11.18 |
| 0.29 |
| 0.92 |
| 1.21 |
| (0.27) |
| (0.37) |
| (0.64) |
| 11.75 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
10.14 |
| 0.17 |
| 0.19 |
| 0.36 |
| (0.15) |
| (0.55) |
| (0.70) |
| 9.80 |
|
2022 |
13.16 |
| 0.27 |
| (2.43) |
| (2.16) |
| (0.22) |
| (0.64) |
| (0.86) |
| 10.14 |
|
2021 |
11.31 |
| 0.11 |
| 2.27 |
| 2.38 |
| (0.11) |
| (0.42) |
| (0.53) |
| 13.16 |
|
2020 |
11.44 |
| 0.16 |
| 0.39 |
| 0.55 |
| (0.15) |
| (0.53) |
| (0.68) |
| 11.31 |
|
2019 |
10.89 |
| 0.19 |
| 0.90 |
| 1.09 |
| (0.17) |
| (0.37) |
| (0.54) |
| 11.44 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
10.18 |
| 0.21 |
| 0.17 |
| 0.38 |
| (0.18) |
| (0.55) |
| (0.73) |
| 9.83 |
|
2022 |
13.20 |
| 0.31 |
| (2.43) |
| (2.12) |
| (0.26) |
| (0.64) |
| (0.90) |
| 10.18 |
|
2021 |
11.35 |
| 0.16 |
| 2.27 |
| 2.43 |
| (0.16) |
| (0.42) |
| (0.58) |
| 13.20 |
|
2020 |
11.48 |
| 0.19 |
| 0.40 |
| 0.59 |
| (0.19) |
| (0.53) |
| (0.72) |
| 11.35 |
|
2019 |
10.94 |
| 0.22 |
| 0.90 |
| 1.12 |
| (0.21) |
| (0.37) |
| (0.58) |
| 11.48 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
10.32 |
| 0.23 |
| 0.18 |
| 0.41 |
| (0.20) |
| (0.55) |
| (0.75) |
| 9.98 |
|
2022 |
13.37 |
| 0.33 |
| (2.46) |
| (2.13) |
| (0.28) |
| (0.64) |
| (0.92) |
| 10.32 |
|
2021 |
11.49 |
| 0.18 |
| 2.30 |
| 2.48 |
| (0.18) |
| (0.42) |
| (0.60) |
| 13.37 |
|
2020 |
11.61 |
| 0.22 |
| 0.40 |
| 0.62 |
| (0.21) |
| (0.53) |
| (0.74) |
| 11.49 |
|
2019 |
11.05 |
| 0.25 |
| 0.91 |
| 1.16 |
| (0.23) |
| (0.37) |
| (0.60) |
| 11.61 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
10.36 |
| 0.25 |
| 0.17 |
| 0.42 |
| (0.21) |
| (0.55) |
| (0.76) |
| 10.02 |
|
2022 |
13.42 |
| 0.36 |
| (2.48) |
| (2.12) |
| (0.30) |
| (0.64) |
| (0.94) |
| 10.36 |
|
2021 |
11.54 |
| 0.20 |
| 2.30 |
| 2.50 |
| (0.20) |
| (0.42) |
| (0.62) |
| 13.42 |
|
2020 |
11.66 |
| 0.22 |
| 0.41 |
| 0.63 |
| (0.22) |
| (0.53) |
| (0.75) |
| 11.54 |
|
2019 |
11.10 |
| 0.26 |
| 0.91 |
| 1.17 |
| (0.24) |
| (0.37) |
| (0.61) |
| 11.66 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
| |
|
|
|
| |
4.49 |
% |
$1,267,266 |
| 0.01 |
% |
2.60 |
% |
14.4 |
% |
(16.71) |
| 1,283,002 |
| 0.01 |
| 3.21 |
| 22.6 |
|
22.55 |
| 1,534,067 |
| 0.01 |
| 1.76 |
| 24.0 |
|
5.93 |
| 1,225,564 |
| 0.01 |
| 2.16 |
| 33.4 |
|
11.81 |
| 1,155,367 |
| 0.01 |
| 2.60 |
| 34.9 |
|
|
|
|
| |
3.64 |
| 6,114 |
| 0.89 |
| 1.70 |
| 14.4 |
|
(17.49) |
| 6,575 |
| 0.88 |
| 2.41 |
| 22.6 |
|
21.53 |
| 8,802 |
| 0.88 |
| 0.90 |
| 24.0 |
|
4.94 |
| 8,795 |
| 0.88 |
| 1.48 |
| 33.4 |
|
10.78 |
| 11,116 |
| 0.88 |
| 1.73 |
| 34.9 |
|
|
|
|
| |
3.83 |
| 86,339 |
| 0.58 |
| 2.07 |
| 14.4 |
|
(17.18) |
| 98,077 |
| 0.57 |
| 2.73 |
| 22.6 |
|
21.95 |
| 132,449 |
| 0.57 |
| 1.23 |
| 24.0 |
|
5.29 |
| 123,574 |
| 0.57 |
| 1.69 |
| 33.4 |
|
11.07 |
| 134,168 |
| 0.57 |
| 2.04 |
| 34.9 |
|
|
|
|
| |
4.11 |
| 34,120 |
| 0.39 |
| 2.19 |
| 14.4 |
|
(17.07) |
| 38,530 |
| 0.38 |
| 2.84 |
| 22.6 |
|
22.14 |
| 51,340 |
| 0.38 |
| 1.45 |
| 24.0 |
|
5.49 |
| 51,235 |
| 0.38 |
| 1.95 |
| 33.4 |
|
11.37 |
| 63,748 |
| 0.38 |
| 2.30 |
| 34.9 |
|
|
|
|
| |
4.25 |
| 81,215 |
| 0.27 |
| 2.40 |
| 14.4 |
|
(16.95) |
| 89,987 |
| 0.26 |
| 3.09 |
| 22.6 |
|
22.20 |
| 123,237 |
| 0.26 |
| 1.54 |
| 24.0 |
|
5.59 |
| 109,815 |
| 0.26 |
| 1.97 |
| 33.4 |
|
11.49 |
| 118,440 |
| 0.26 |
| 2.31 |
| 34.9 |
|
(a)Calculated
based on average shares outstanding during the period.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME 2030 FUND |
Class
A shares |
|
|
|
|
|
|
| |
2023 |
$13.12 |
| $0.24 |
| $0.32 |
| $0.56 |
| ($0.20) |
| ($0.98) |
| ($1.18) |
| $12.50 |
|
2022 |
17.49 |
| 0.42 |
| (3.42) |
| (3.00) |
| (0.35) |
| (1.02) |
| (1.37) |
| 13.12 |
|
2021 |
14.76 |
| 0.22 |
| 3.45 |
| 3.67 |
| (0.22) |
| (0.72) |
| (0.94) |
| 17.49 |
|
2020 |
14.85 |
| 0.26 |
| 0.54 |
| 0.80 |
| (0.26) |
| (0.63) |
| (0.89) |
| 14.76 |
|
2019 |
14.31 |
| 0.29 |
| 1.23 |
| 1.52 |
| (0.27) |
| (0.71) |
| (0.98) |
| 14.85 |
|
Class
J shares |
|
|
|
|
|
|
| |
2023 |
13.04 |
| 0.26 |
| 0.32 |
| 0.58 |
| (0.23) |
| (0.98) |
| (1.21) |
| 12.41 |
|
2022 |
17.39 |
| 0.44 |
| (3.39) |
| (2.95) |
| (0.38) |
| (1.02) |
| (1.40) |
| 13.04 |
|
2021 |
14.67 |
| 0.26 |
| 3.43 |
| 3.69 |
| (0.25) |
| (0.72) |
| (0.97) |
| 17.39 |
|
2020 |
14.77 |
| 0.29 |
| 0.53 |
| 0.82 |
| (0.29) |
| (0.63) |
| (0.92) |
| 14.67 |
|
2019 |
14.24 |
| 0.31 |
| 1.23 |
| 1.54 |
| (0.30) |
| (0.71) |
| (1.01) |
| 14.77 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
13.10 |
| 0.29 |
| 0.32 |
| 0.61 |
| (0.25) |
| (0.98) |
| (1.23) |
| 12.48 |
|
2022 |
17.47 |
| 0.46 |
| (3.40) |
| (2.94) |
| (0.41) |
| (1.02) |
| (1.43) |
| 13.10 |
|
2021 |
14.73 |
| 0.28 |
| 3.45 |
| 3.73 |
| (0.27) |
| (0.72) |
| (0.99) |
| 17.47 |
|
2020 |
14.83 |
| 0.31 |
| 0.53 |
| 0.84 |
| (0.31) |
| (0.63) |
| (0.94) |
| 14.73 |
|
2019 |
14.29 |
| 0.35 |
| 1.22 |
| 1.57 |
| (0.32) |
| (0.71) |
| (1.03) |
| 14.83 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
12.94 |
| 0.17 |
| 0.31 |
| 0.48 |
| (0.13) |
| (0.98) |
| (1.11) |
| 12.31 |
|
2022 |
17.25 |
| 0.34 |
| (3.37) |
| (3.03) |
| (0.26) |
| (1.02) |
| (1.28) |
| 12.94 |
|
2021 |
14.58 |
| 0.14 |
| 3.40 |
| 3.54 |
| (0.15) |
| (0.72) |
| (0.87) |
| 17.25 |
|
2020 |
14.68 |
| 0.18 |
| 0.53 |
| 0.71 |
| (0.18) |
| (0.63) |
| (0.81) |
| 14.58 |
|
2019 |
14.12 |
| 0.23 |
| 1.22 |
| 1.45 |
| (0.18) |
| (0.71) |
| (0.89) |
| 14.68 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
12.99 |
| 0.21 |
| 0.32 |
| 0.53 |
| (0.17) |
| (0.98) |
| (1.15) |
| 12.37 |
|
2022 |
17.33 |
| 0.39 |
| (3.39) |
| (3.00) |
| (0.32) |
| (1.02) |
| (1.34) |
| 12.99 |
|
2021 |
14.63 |
| 0.19 |
| 3.42 |
| 3.61 |
| (0.19) |
| (0.72) |
| (0.91) |
| 17.33 |
|
2020 |
14.73 |
| 0.23 |
| 0.52 |
| 0.75 |
| (0.22) |
| (0.63) |
| (0.85) |
| 14.63 |
|
2019 |
14.19 |
| 0.27 |
| 1.21 |
| 1.48 |
| (0.23) |
| (0.71) |
| (0.94) |
| 14.73 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
13.61 |
| 0.25 |
| 0.33 |
| 0.58 |
| (0.19) |
| (0.98) |
| (1.17) |
| 13.02 |
|
2022 |
18.09 |
| 0.43 |
| (3.55) |
| (3.12) |
| (0.34) |
| (1.02) |
| (1.36) |
| 13.61 |
|
2021 |
15.23 |
| 0.24 |
| 3.55 |
| 3.79 |
| (0.21) |
| (0.72) |
| (0.93) |
| 18.09 |
|
2020 |
15.28 |
| 0.30 |
| 0.53 |
| 0.83 |
| (0.25) |
| (0.63) |
| (0.88) |
| 15.23 |
|
2019 |
14.69 |
| 0.34 |
| 1.22 |
| 1.56 |
| (0.26) |
| (0.71) |
| (0.97) |
| 15.28 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
13.07 |
| 0.26 |
| 0.31 |
| 0.57 |
| (0.22) |
| (0.98) |
| (1.20) |
| 12.44 |
|
2022 |
17.43 |
| 0.43 |
| (3.40) |
| (2.97) |
| (0.37) |
| (1.02) |
| (1.39) |
| 13.07 |
|
2021 |
14.70 |
| 0.25 |
| 3.44 |
| 3.69 |
| (0.24) |
| (0.72) |
| (0.96) |
| 17.43 |
|
2020 |
14.79 |
| 0.28 |
| 0.53 |
| 0.81 |
| (0.27) |
| (0.63) |
| (0.90) |
| 14.70 |
|
2019 |
14.26 |
| 0.31 |
| 1.22 |
| 1.53 |
| (0.29) |
| (0.71) |
| (1.00) |
| 14.79 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Gross Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
4.42 |
% |
(b) |
$121,782 |
| 0.38 |
% |
(c) |
– |
% |
| 1.84 |
% |
11.2 |
% |
(18.48) |
| (b) |
129,354 |
| 0.37 |
| (c) |
– |
|
| 2.83 |
| 31.1 |
|
25.68 |
| (b) |
168,435 |
| 0.36 |
| (c) |
– |
|
| 1.34 |
| 24.0 |
|
5.48 |
| (b) |
128,178 |
| 0.38 |
| (c) |
– |
|
| 1.78 |
| 33.4 |
|
11.81 |
| (b) |
125,814 |
| 0.38 |
| (c) |
– |
|
| 2.04 |
| 23.0 |
|
|
|
|
|
|
|
|
| |
4.59 |
| (b) |
1,019,722 |
| 0.17 |
| (d) |
0.19 |
| (e) |
2.05 |
| 11.2 |
|
(18.33) |
| (b) |
1,041,206 |
| 0.18 |
| (d) |
0.20 |
| (e) |
3.02 |
| 31.1 |
|
26.00 |
| (b) |
1,388,404 |
| 0.18 |
| (d) |
0.20 |
| (e) |
1.56 |
| 24.0 |
|
5.64 |
| (b) |
1,169,328 |
| 0.17 |
| (d) |
0.20 |
| (e) |
2.02 |
| 33.4 |
|
12.06 |
| (b) |
1,197,486 |
| 0.18 |
| (d) |
0.21 |
| (e) |
2.24 |
| 23.0 |
|
|
|
|
|
|
|
|
| |
4.84 |
|
| 3,387,912 |
| 0.01 |
|
| – |
|
| 2.21 |
| 11.2 |
|
(18.22) |
|
| 3,437,305 |
| 0.01 |
|
| – |
|
| 3.15 |
| 31.1 |
|
26.21 |
|
| 4,530,236 |
| 0.01 |
|
| – |
|
| 1.71 |
| 24.0 |
|
5.79 |
|
| 3,592,487 |
| 0.01 |
|
| – |
|
| 2.16 |
| 33.4 |
|
12.31 |
|
| 3,620,578 |
| 0.01 |
|
| – |
|
| 2.47 |
| 23.0 |
|
|
|
|
|
|
|
|
| |
3.84 |
|
| 16,206 |
| 0.88 |
|
| – |
|
| 1.32 |
| 11.2 |
|
(18.91) |
| (f) |
16,009 |
| 0.88 |
|
| – |
|
| 2.32 |
| 31.1 |
|
25.06 |
| (f) |
21,472 |
| 0.88 |
|
| – |
|
| 0.88 |
| 24.0 |
|
4.92 |
|
| 21,726 |
| 0.88 |
|
| – |
|
| 1.27 |
| 33.4 |
|
11.34 |
|
| 22,286 |
| 0.88 |
|
| – |
|
| 1.65 |
| 23.0 |
|
|
|
|
|
|
|
|
| |
4.20 |
|
| 123,110 |
| 0.57 |
|
| – |
|
| 1.64 |
| 11.2 |
|
(18.66) |
|
| 125,371 |
| 0.57 |
|
| – |
|
| 2.65 |
| 31.1 |
|
25.46 |
|
| 176,532 |
| 0.57 |
|
| – |
|
| 1.14 |
| 24.0 |
|
5.22 |
|
| 141,979 |
| 0.57 |
|
| – |
|
| 1.60 |
| 33.4 |
|
11.62 |
|
| 153,293 |
| 0.57 |
|
| – |
|
| 1.92 |
| 23.0 |
|
|
|
|
|
|
|
|
| |
4.44 |
|
| 48,868 |
| 0.38 |
|
| – |
|
| 1.83 |
| 11.2 |
|
(18.53) |
|
| 52,612 |
| 0.38 |
|
| – |
|
| 2.82 |
| 31.1 |
|
25.68 |
|
| 73,168 |
| 0.38 |
|
| – |
|
| 1.38 |
| 24.0 |
|
5.50 |
|
| 65,940 |
| 0.38 |
|
| – |
|
| 2.01 |
| 33.4 |
|
11.78 |
|
| 89,004 |
| 0.38 |
|
| – |
|
| 2.37 |
| 23.0 |
|
|
|
|
|
|
|
|
| |
4.49 |
|
| 167,033 |
| 0.26 |
|
| – |
|
| 1.99 |
| 11.2 |
|
(18.42) |
|
| 184,436 |
| 0.26 |
|
| – |
|
| 2.94 |
| 31.1 |
|
25.88 |
|
| 242,659 |
| 0.26 |
|
| – |
|
| 1.49 |
| 24.0 |
|
5.60 |
|
| 212,626 |
| 0.26 |
|
| – |
|
| 1.96 |
| 33.4 |
|
11.94 |
|
| 245,044 |
| 0.26 |
|
| – |
|
| 2.21 |
| 23.0 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit.
(d)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(e)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(f)Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which a shareholder would have paid or received from a subscription or
redemption.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME 2035 FUND |
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
$11.43 |
| $0.23 |
| $0.37 |
| $0.60 |
| ($0.19) |
| ($0.62) |
| ($0.81) |
| $11.22 |
|
2022 |
15.10 |
| 0.41 |
| (3.07) |
| (2.66) |
| (0.40) |
| (0.61) |
| (1.01) |
| 11.43 |
|
2021 |
12.34 |
| 0.24 |
| 3.24 |
| 3.48 |
| (0.23) |
| (0.49) |
| (0.72) |
| 15.10 |
|
2020 |
12.49 |
| 0.24 |
| 0.50 |
| 0.74 |
| (0.26) |
| (0.63) |
| (0.89) |
| 12.34 |
|
2019 |
11.97 |
| 0.28 |
| 1.06 |
| 1.34 |
| (0.27) |
| (0.55) |
| (0.82) |
| 12.49 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
11.11 |
| 0.12 |
| 0.38 |
| 0.50 |
| (0.10) |
| (0.62) |
| (0.72) |
| 10.89 |
|
2022 |
14.71 |
| 0.30 |
| (3.02) |
| (2.72) |
| (0.27) |
| (0.61) |
| (0.88) |
| 11.11 |
|
2021 |
12.04 |
| 0.12 |
| 3.16 |
| 3.28 |
| (0.12) |
| (0.49) |
| (0.61) |
| 14.71 |
|
2020 |
12.20 |
| 0.16 |
| 0.46 |
| 0.62 |
| (0.15) |
| (0.63) |
| (0.78) |
| 12.04 |
|
2019 |
11.70 |
| 0.18 |
| 1.03 |
| 1.21 |
| (0.16) |
| (0.55) |
| (0.71) |
| 12.20 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
11.17 |
| 0.16 |
| 0.37 |
| 0.53 |
| (0.13) |
| (0.62) |
| (0.75) |
| 10.95 |
|
2022 |
14.78 |
| 0.34 |
| (3.02) |
| (2.68) |
| (0.32) |
| (0.61) |
| (0.93) |
| 11.17 |
|
2021 |
12.09 |
| 0.15 |
| 3.19 |
| 3.34 |
| (0.16) |
| (0.49) |
| (0.65) |
| 14.78 |
|
2020 |
12.26 |
| 0.18 |
| 0.47 |
| 0.65 |
| (0.19) |
| (0.63) |
| (0.82) |
| 12.09 |
|
2019 |
11.76 |
| 0.21 |
| 1.04 |
| 1.25 |
| (0.20) |
| (0.55) |
| (0.75) |
| 12.26 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
11.30 |
| 0.18 |
| 0.37 |
| 0.55 |
| (0.15) |
| (0.62) |
| (0.77) |
| 11.08 |
|
2022 |
14.93 |
| 0.37 |
| (3.05) |
| (2.68) |
| (0.34) |
| (0.61) |
| (0.95) |
| 11.30 |
|
2021 |
12.21 |
| 0.19 |
| 3.20 |
| 3.39 |
| (0.18) |
| (0.49) |
| (0.67) |
| 14.93 |
|
2020 |
12.37 |
| 0.22 |
| 0.46 |
| 0.68 |
| (0.21) |
| (0.63) |
| (0.84) |
| 12.21 |
|
2019 |
11.85 |
| 0.25 |
| 1.04 |
| 1.29 |
| (0.22) |
| (0.55) |
| (0.77) |
| 12.37 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
11.34 |
| 0.20 |
| 0.37 |
| 0.57 |
| (0.16) |
| (0.62) |
| (0.78) |
| 11.13 |
|
2022 |
14.99 |
| 0.40 |
| (3.08) |
| (2.68) |
| (0.36) |
| (0.61) |
| (0.97) |
| 11.34 |
|
2021 |
12.26 |
| 0.21 |
| 3.21 |
| 3.42 |
| (0.20) |
| (0.49) |
| (0.69) |
| 14.99 |
|
2020 |
12.41 |
| 0.23 |
| 0.47 |
| 0.70 |
| (0.22) |
| (0.63) |
| (0.85) |
| 12.26 |
|
2019 |
11.90 |
| 0.25 |
| 1.05 |
| 1.30 |
| (0.24) |
| (0.55) |
| (0.79) |
| 12.41 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
Total
Return |
Net
Assets,
End of Period (in thousands) |
Ratio
of Expenses to Average Net
Assets |
Ratio
of Net Investment Income to
Average
Net
Assets |
Portfolio
Turnover
Rate |
|
|
|
| |
|
|
|
| |
5.54 |
% |
$1,439,309 |
| 0.01 |
% |
1.97 |
% |
12.3 |
% |
(18.85) |
| 1,301,768 |
| 0.01 |
| 3.19 |
| 19.6 |
|
28.95 |
| 1,468,727 |
| 0.01 |
| 1.66 |
| 19.5 |
|
6.02 |
| 1,043,617 |
| 0.01 |
| 2.04 |
| 37.1 |
|
12.43 |
| 955,390 |
| 0.01 |
| 2.35 |
| 25.9 |
|
|
|
|
| |
4.65 |
| 6,617 |
| 0.89 |
| 1.09 |
| 12.3 |
|
(19.58) |
| 6,498 |
| 0.88 |
| 2.43 |
| 19.6 |
|
27.85 |
| 8,129 |
| 0.88 |
| 0.84 |
| 19.5 |
|
5.11 |
| 7,462 |
| 0.88 |
| 1.36 |
| 37.1 |
|
11.38 |
| 8,566 |
| 0.89 |
| 1.59 |
| 25.9 |
|
|
|
|
| |
4.94 |
| 86,441 |
| 0.58 |
| 1.42 |
| 12.3 |
|
(19.30) |
| 85,620 |
| 0.57 |
| 2.75 |
| 19.6 |
|
28.31 |
| 110,352 |
| 0.57 |
| 1.11 |
| 19.5 |
|
5.38 |
| 85,507 |
| 0.57 |
| 1.56 |
| 37.1 |
|
11.74 |
| 87,799 |
| 0.58 |
| 1.83 |
| 25.9 |
|
|
|
|
| |
5.08 |
| 34,284 |
| 0.39 |
| 1.59 |
| 12.3 |
|
(19.11) |
| 34,077 |
| 0.38 |
| 2.93 |
| 19.6 |
|
28.48 |
| 44,010 |
| 0.38 |
| 1.37 |
| 19.5 |
|
5.58 |
| 38,878 |
| 0.38 |
| 1.86 |
| 37.1 |
|
12.05 |
| 45,491 |
| 0.39 |
| 2.10 |
| 25.9 |
|
|
|
|
| |
5.30 |
| 83,168 |
| 0.27 |
| 1.77 |
| 12.3 |
|
(19.06) |
| 86,155 |
| 0.26 |
| 3.14 |
| 19.6 |
|
28.61 |
| 113,877 |
| 0.26 |
| 1.45 |
| 19.5 |
|
5.76 |
| 92,452 |
| 0.26 |
| 1.92 |
| 37.1 |
|
12.11 |
| 99,730 |
| 0.27 |
| 2.09 |
| 25.9 |
|
(a)Calculated
based on average shares outstanding during the period.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME
2040
FUND |
|
|
|
|
|
| |
Class
A
shares |
|
|
|
|
|
|
| |
2023 |
$13.86 |
| $0.19 |
| $0.59 |
| $0.78 |
| ($0.16) |
| ($0.94) |
| ($1.10) |
| $13.54 |
|
2022 |
18.81 |
| 0.46 |
| (3.88) |
| (3.42) |
| (0.46) |
| (1.07) |
| (1.53) |
| 13.86 |
|
2021 |
15.20 |
| 0.22 |
| 4.35 |
| 4.57 |
| (0.23) |
| (0.73) |
| (0.96) |
| 18.81 |
|
2020 |
15.43 |
| 0.24 |
| 0.60 |
| 0.84 |
| (0.26) |
| (0.81) |
| (1.07) |
| 15.20 |
|
2019 |
14.99 |
| 0.27 |
| 1.34 |
| 1.61 |
| (0.26) |
| (0.91) |
| (1.17) |
| 15.43 |
|
Class
J shares |
|
|
|
|
|
|
| |
2023 |
14.07 |
| 0.22 |
| 0.60 |
| 0.82 |
| (0.19) |
| (0.94) |
| (1.13) |
| 13.76 |
|
2022 |
19.07 |
| 0.50 |
| (3.94) |
| (3.44) |
| (0.49) |
| (1.07) |
| (1.56) |
| 14.07 |
|
2021 |
15.39 |
| 0.26 |
| 4.41 |
| 4.67 |
| (0.26) |
| (0.73) |
| (0.99) |
| 19.07 |
|
2020 |
15.61 |
| 0.28 |
| 0.59 |
| 0.87 |
| (0.28) |
| (0.81) |
| (1.09) |
| 15.39 |
|
2019 |
15.15 |
| 0.30 |
| 1.36 |
| 1.66 |
| (0.29) |
| (0.91) |
| (1.20) |
| 15.61 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
14.24 |
| 0.24 |
| 0.62 |
| 0.86 |
| (0.21) |
| (0.94) |
| (1.15) |
| 13.95 |
|
2022 |
19.29 |
| 0.53 |
| (3.99) |
| (3.46) |
| (0.52) |
| (1.07) |
| (1.59) |
| 14.24 |
|
2021 |
15.55 |
| 0.29 |
| 4.46 |
| 4.75 |
| (0.28) |
| (0.73) |
| (1.01) |
| 19.29 |
|
2020 |
15.77 |
| 0.30 |
| 0.60 |
| 0.90 |
| (0.31) |
| (0.81) |
| (1.12) |
| 15.55 |
|
2019 |
15.29 |
| 0.34 |
| 1.37 |
| 1.71 |
| (0.32) |
| (0.91) |
| (1.23) |
| 15.77 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
14.02 |
| 0.12 |
| 0.61 |
| 0.73 |
| (0.09) |
| (0.94) |
| (1.03) |
| 13.72 |
|
2022 |
18.99 |
| 0.38 |
| (3.94) |
| (3.56) |
| (0.34) |
| (1.07) |
| (1.41) |
| 14.02 |
|
2021 |
15.34 |
| 0.14 |
| 4.39 |
| 4.53 |
| (0.15) |
| (0.73) |
| (0.88) |
| 18.99 |
|
2020 |
15.55 |
| 0.17 |
| 0.59 |
| 0.76 |
| (0.16) |
| (0.81) |
| (0.97) |
| 15.34 |
|
2019 |
15.08 |
| 0.21 |
| 1.35 |
| 1.56 |
| (0.18) |
| (0.91) |
| (1.09) |
| 15.55 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
13.95 |
| 0.16 |
| 0.61 |
| 0.77 |
| (0.13) |
| (0.94) |
| (1.07) |
| 13.65 |
|
2022 |
18.93 |
| 0.44 |
| (3.93) |
| (3.49) |
| (0.42) |
| (1.07) |
| (1.49) |
| 13.95 |
|
2021 |
15.29 |
| 0.18 |
| 4.39 |
| 4.57 |
| (0.20) |
| (0.73) |
| (0.93) |
| 18.93 |
|
2020 |
15.52 |
| 0.22 |
| 0.58 |
| 0.80 |
| (0.22) |
| (0.81) |
| (1.03) |
| 15.29 |
|
2019 |
15.06 |
| 0.25 |
| 1.35 |
| 1.60 |
| (0.23) |
| (0.91) |
| (1.14) |
| 15.52 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
14.02 |
| 0.19 |
| 0.60 |
| 0.79 |
| (0.16) |
| (0.94) |
| (1.10) |
| 13.71 |
|
2022 |
19.00 |
| 0.47 |
| (3.93) |
| (3.46) |
| (0.45) |
| (1.07) |
| (1.52) |
| 14.02 |
|
2021 |
15.34 |
| 0.23 |
| 4.38 |
| 4.61 |
| (0.22) |
| (0.73) |
| (0.95) |
| 19.00 |
|
2020 |
15.56 |
| 0.29 |
| 0.55 |
| 0.84 |
| (0.25) |
| (0.81) |
| (1.06) |
| 15.34 |
|
2019 |
15.10 |
| 0.31 |
| 1.32 |
| 1.63 |
| (0.26) |
| (0.91) |
| (1.17) |
| 15.56 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
14.13 |
| 0.21 |
| 0.61 |
| 0.82 |
| (0.18) |
| (0.94) |
| (1.12) |
| 13.83 |
|
2022 |
19.15 |
| 0.49 |
| (3.97) |
| (3.48) |
| (0.47) |
| (1.07) |
| (1.54) |
| 14.13 |
|
2021 |
15.45 |
| 0.25 |
| 4.42 |
| 4.67 |
| (0.24) |
| (0.73) |
| (0.97) |
| 19.15 |
|
2020 |
15.67 |
| 0.27 |
| 0.59 |
| 0.86 |
| (0.27) |
| (0.81) |
| (1.08) |
| 15.45 |
|
2019 |
15.20 |
| 0.29 |
| 1.37 |
| 1.66 |
| (0.28) |
| (0.91) |
| (1.19) |
| 15.67 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average
Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
5.96 |
% |
(b) |
$99,851 |
| 0.38 |
% |
(c) |
– |
% |
| 1.34 |
% |
12.4 |
% |
(19.68) |
| (b) |
101,428 |
| 0.38 |
| (c) |
– |
|
| 2.94 |
| 23.8 |
|
31.00 |
| (b) |
126,454 |
| 0.38 |
| (c) |
– |
|
| 1.24 |
| 20.0 |
|
5.49 |
| (b) |
97,825 |
| 0.38 |
| (c) |
– |
|
| 1.65 |
| 32.8 |
|
12.24 |
| (b) |
94,659 |
| 0.38 |
| (c) |
– |
|
| 1.84 |
| 14.6 |
|
|
|
|
|
|
|
|
| |
6.15 |
| (b) |
733,117 |
| 0.18 |
| (d) |
0.20 |
| (e) |
1.53 |
| 12.4 |
|
(19.53) |
| (b) |
724,982 |
| 0.18 |
| (d) |
0.20 |
| (e) |
3.17 |
| 23.8 |
|
31.30 |
| (b) |
948,713 |
| 0.18 |
| (d) |
0.21 |
| (e) |
1.44 |
| 20.0 |
|
5.67 |
| (b) |
753,868 |
| 0.18 |
| (d) |
0.21 |
| (e) |
1.86 |
| 32.8 |
|
12.47 |
| (b) |
752,041 |
| 0.20 |
| (d) |
0.23 |
| (e) |
2.01 |
| 14.6 |
|
|
|
|
|
|
|
|
| |
6.42 |
|
| 2,798,971 |
| 0.01 |
|
| – |
|
| 1.70 |
| 12.4 |
|
(19.43) |
|
| 2,684,679 |
| 0.01 |
|
| – |
|
| 3.30 |
| 23.8 |
|
31.56 |
|
| 3,429,237 |
| 0.01 |
|
| – |
|
| 1.61 |
| 20.0 |
|
5.79 |
|
| 2,615,276 |
| 0.01 |
|
| – |
|
| 2.02 |
| 32.8 |
|
12.72 |
|
| 2,569,620 |
| 0.01 |
|
| – |
|
| 2.25 |
| 14.6 |
|
|
|
|
|
|
|
|
| |
5.46 |
|
| 12,039 |
| 0.88 |
|
| – |
|
| 0.82 |
| 12.4 |
|
(20.10) |
|
| 12,069 |
| 0.88 |
|
| – |
|
| 2.41 |
| 23.8 |
|
30.38 |
|
| 16,062 |
| 0.88 |
|
| – |
|
| 0.81 |
| 20.0 |
|
4.90 |
|
| 15,714 |
| 0.88 |
|
| – |
|
| 1.11 |
| 32.8 |
|
11.68 |
|
| 17,042 |
| 0.88 |
|
| – |
|
| 1.45 |
| 14.6 |
|
|
|
|
|
|
|
|
| |
5.83 |
|
| 99,443 |
| 0.57 |
|
| – |
|
| 1.13 |
| 12.4 |
|
(19.88) |
|
| 96,348 |
| 0.57 |
|
| – |
|
| 2.81 |
| 23.8 |
|
30.81 |
|
| 129,032 |
| 0.57 |
|
| – |
|
| 1.02 |
| 20.0 |
|
5.22 |
|
| 97,748 |
| 0.57 |
|
| – |
|
| 1.46 |
| 32.8 |
|
12.01 |
|
| 99,952 |
| 0.57 |
|
| – |
|
| 1.72 |
| 14.6 |
|
|
|
|
|
|
|
|
| |
5.96 |
|
| 41,115 |
| 0.38 |
|
| – |
|
| 1.31 |
| 12.4 |
|
(19.68) |
|
| 40,589 |
| 0.38 |
|
| – |
|
| 2.96 |
| 23.8 |
|
31.00 |
|
| 53,623 |
| 0.38 |
|
| – |
|
| 1.31 |
| 20.0 |
|
5.45 |
|
| 48,722 |
| 0.38 |
|
| – |
|
| 1.94 |
| 32.8 |
|
12.24 |
|
| 68,656 |
| 0.38 |
|
| – |
|
| 2.13 |
| 14.6 |
|
|
|
|
|
|
|
|
| |
6.12 |
|
| 142,339 |
| 0.26 |
|
| – |
|
| 1.49 |
| 12.4 |
|
(19.62) |
|
| 147,107 |
| 0.26 |
|
| – |
|
| 3.08 |
| 23.8 |
|
31.19 |
|
| 187,926 |
| 0.26 |
|
| – |
|
| 1.39 |
| 20.0 |
|
5.56 |
|
| 159,934 |
| 0.26 |
|
| – |
|
| 1.80 |
| 32.8 |
|
12.40 |
|
| 173,689 |
| 0.26 |
|
| – |
|
| 1.98 |
| 14.6 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit.
(d)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(e)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME 2045 FUND |
|
|
|
|
|
| |
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
$12.43 |
| $0.18 |
| $0.63 |
| $0.81 |
| ($0.16) |
| ($0.86) |
| ($1.02) |
| $12.22 |
|
2022 |
16.56 |
| 0.44 |
| (3.51) |
| (3.07) |
| (0.47) |
| (0.59) |
| (1.06) |
| 12.43 |
|
2021 |
12.95 |
| 0.23 |
| 4.05 |
| 4.28 |
| (0.24) |
| (0.43) |
| (0.67) |
| 16.56 |
|
2020 |
13.12 |
| 0.24 |
| 0.48 |
| 0.72 |
| (0.25) |
| (0.64) |
| (0.89) |
| 12.95 |
|
2019 |
12.51 |
| 0.27 |
| 1.17 |
| 1.44 |
| (0.26) |
| (0.57) |
| (0.83) |
| 13.12 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
11.93 |
| 0.08 |
| 0.60 |
| 0.68 |
| (0.06) |
| (0.86) |
| (0.92) |
| 11.69 |
|
2022 |
15.93 |
| 0.34 |
| (3.41) |
| (3.07) |
| (0.34) |
| (0.59) |
| (0.93) |
| 11.93 |
|
2021 |
12.49 |
| 0.11 |
| 3.88 |
| 3.99 |
| (0.12) |
| (0.43) |
| (0.55) |
| 15.93 |
|
2020 |
12.67 |
| 0.15 |
| 0.44 |
| 0.59 |
| (0.13) |
| (0.64) |
| (0.77) |
| 12.49 |
|
2019 |
12.09 |
| 0.17 |
| 1.13 |
| 1.30 |
| (0.15) |
| (0.57) |
| (0.72) |
| 12.67 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
12.01 |
| 0.11 |
| 0.61 |
| 0.72 |
| (0.09) |
| (0.86) |
| (0.95) |
| 11.78 |
|
2022 |
16.03 |
| 0.38 |
| (3.43) |
| (3.05) |
| (0.38) |
| (0.59) |
| (0.97) |
| 12.01 |
|
2021 |
12.57 |
| 0.14 |
| 3.91 |
| 4.05 |
| (0.16) |
| (0.43) |
| (0.59) |
| 16.03 |
|
2020 |
12.76 |
| 0.18 |
| 0.45 |
| 0.63 |
| (0.18) |
| (0.64) |
| (0.82) |
| 12.57 |
|
2019 |
12.18 |
| 0.20 |
| 1.14 |
| 1.34 |
| (0.19) |
| (0.57) |
| (0.76) |
| 12.76 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
12.17 |
| 0.13 |
| 0.62 |
| 0.75 |
| (0.11) |
| (0.86) |
| (0.97) |
| 11.95 |
|
2022 |
16.23 |
| 0.40 |
| (3.47) |
| (3.07) |
| (0.40) |
| (0.59) |
| (0.99) |
| 12.17 |
|
2021 |
12.71 |
| 0.19 |
| 3.95 |
| 4.14 |
| (0.19) |
| (0.43) |
| (0.62) |
| 16.23 |
|
2020 |
12.89 |
| 0.21 |
| 0.45 |
| 0.66 |
| (0.20) |
| (0.64) |
| (0.84) |
| 12.71 |
|
2019 |
12.29 |
| 0.23 |
| 1.14 |
| 1.37 |
| (0.20) |
| (0.57) |
| (0.77) |
| 12.89 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
12.20 |
| 0.16 |
| 0.60 |
| 0.76 |
| (0.13) |
| (0.86) |
| (0.99) |
| 11.97 |
|
2022 |
16.26 |
| 0.43 |
| (3.47) |
| (3.04) |
| (0.43) |
| (0.59) |
| (1.02) |
| 12.20 |
|
2021 |
12.74 |
| 0.19 |
| 3.96 |
| 4.15 |
| (0.20) |
| (0.43) |
| (0.63) |
| 16.26 |
|
2020 |
12.92 |
| 0.22 |
| 0.46 |
| 0.68 |
| (0.22) |
| (0.64) |
| (0.86) |
| 12.74 |
|
2019 |
12.33 |
| 0.23 |
| 1.16 |
| 1.39 |
| (0.23) |
| (0.57) |
| (0.80) |
| 12.92 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
Total
Return |
Net
Assets,
End of Period (in thousands) |
Ratio
of Expenses to Average Net
Assets |
Ratio
of Net Investment Income to
Average
Net
Assets |
Portfolio
Turnover
Rate |
|
|
|
| |
|
|
|
| |
6.92 |
% |
$1,152,378 |
| 0.01 |
% |
1.46 |
% |
11.4 |
% |
(19.76) |
| 1,010,879 |
| 0.01 |
| 3.21 |
| 23.8 |
|
33.82 |
| 1,139,261 |
| 0.01 |
| 1.50 |
| 19.2 |
|
5.57 |
| 780,234 |
| 0.01 |
| 1.90 |
| 32.5 |
|
12.75 |
| 705,002 |
| 0.01 |
| 2.16 |
| 19.2 |
|
|
|
|
| |
5.99 |
| 3,512 |
| 0.89 |
| 0.64 |
| 11.4 |
|
(20.41) |
| 3,916 |
| 0.88 |
| 2.54 |
| 23.8 |
|
32.61 |
| 5,074 |
| 0.88 |
| 0.76 |
| 19.2 |
|
4.68 |
| 4,536 |
| 0.89 |
| 1.24 |
| 32.5 |
|
11.81 |
| 5,738 |
| 0.89 |
| 1.41 |
| 19.2 |
|
|
|
|
| |
6.35 |
| 68,323 |
| 0.58 |
| 0.92 |
| 11.4 |
|
(20.17) |
| 66,131 |
| 0.57 |
| 2.85 |
| 23.8 |
|
32.97 |
| 88,634 |
| 0.57 |
| 0.93 |
| 19.2 |
|
5.00 |
| 66,042 |
| 0.58 |
| 1.45 |
| 32.5 |
|
12.13 |
| 67,732 |
| 0.58 |
| 1.64 |
| 19.2 |
|
|
|
|
| |
6.53 |
| 22,066 |
| 0.39 |
| 1.09 |
| 11.4 |
|
(20.06) |
| 22,059 |
| 0.38 |
| 2.95 |
| 23.8 |
|
33.30 |
| 30,290 |
| 0.38 |
| 1.23 |
| 19.2 |
|
5.19 |
| 27,141 |
| 0.39 |
| 1.72 |
| 32.5 |
|
12.38 |
| 30,975 |
| 0.39 |
| 1.91 |
| 19.2 |
|
|
|
|
| |
6.60 |
| 68,730 |
| 0.27 |
| 1.28 |
| 11.4 |
|
(19.89) |
| 69,495 |
| 0.26 |
| 3.17 |
| 23.8 |
|
33.37 |
| 91,388 |
| 0.26 |
| 1.28 |
| 19.2 |
|
5.30 |
| 71,201 |
| 0.27 |
| 1.80 |
| 32.5 |
|
12.46 |
| 74,697 |
| 0.27 |
| 1.88 |
| 19.2 |
|
(a)
Calculated
based
on
average
shares
outstanding
during
the
period.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME
2050
FUND |
Class
A
shares |
|
|
|
|
|
|
| |
2023 |
$14.82 |
| $0.15 |
| $0.81 |
| $0.96 |
| ($0.12) |
| ($1.12) |
| ($1.24) |
| $14.54 |
|
2022 |
20.06 |
| 0.49 |
| (4.30) |
| (3.81) |
| (0.49) |
| (0.94) |
| (1.43) |
| 14.82 |
|
2021 |
15.63 |
| 0.21 |
| 5.06 |
| 5.27 |
| (0.22) |
| (0.62) |
| (0.84) |
| 20.06 |
|
2020 |
15.89 |
| 0.24 |
| 0.56 |
| 0.80 |
| (0.24) |
| (0.82) |
| (1.06) |
| 15.63 |
|
2019 |
15.28 |
| 0.27 |
| 1.42 |
| 1.69 |
| (0.24) |
| (0.84) |
| (1.08) |
| 15.89 |
|
Class
J
shares |
|
|
|
|
|
|
| |
2023 |
14.22 |
| 0.16 |
| 0.79 |
| 0.95 |
| (0.15) |
| (1.12) |
| (1.27) |
| 13.90 |
|
2022 |
19.30 |
| 0.51 |
| (4.13) |
| (3.62) |
| (0.52) |
| (0.94) |
| (1.46) |
| 14.22 |
|
2021 |
15.06 |
| 0.23 |
| 4.88 |
| 5.11 |
| (0.25) |
| (0.62) |
| (0.87) |
| 19.30 |
|
2020 |
15.35 |
| 0.25 |
| 0.54 |
| 0.79 |
| (0.26) |
| (0.82) |
| (1.08) |
| 15.06 |
|
2019 |
14.81 |
| 0.27 |
| 1.38 |
| 1.65 |
| (0.27) |
| (0.84) |
| (1.11) |
| 15.35 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
14.78 |
| 0.20 |
| 0.81 |
| 1.01 |
| (0.18) |
| (1.12) |
| (1.30) |
| 14.49 |
|
2022 |
19.99 |
| 0.55 |
| (4.26) |
| (3.71) |
| (0.56) |
| (0.94) |
| (1.50) |
| 14.78 |
|
2021 |
15.57 |
| 0.28 |
| 5.04 |
| 5.32 |
| (0.28) |
| (0.62) |
| (0.90) |
| 19.99 |
|
2020 |
15.84 |
| 0.29 |
| 0.55 |
| 0.84 |
| (0.29) |
| (0.82) |
| (1.11) |
| 15.57 |
|
2019 |
15.24 |
| 0.31 |
| 1.43 |
| 1.74 |
| (0.30) |
| (0.84) |
| (1.14) |
| 15.84 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
14.53 |
| 0.07 |
| 0.80 |
| 0.87 |
| (0.05) |
| (1.12) |
| (1.17) |
| 14.23 |
|
2022 |
19.67 |
| 0.39 |
| (4.20) |
| (3.81) |
| (0.39) |
| (0.94) |
| (1.33) |
| 14.53 |
|
2021 |
15.35 |
| 0.12 |
| 4.97 |
| 5.09 |
| (0.15) |
| (0.62) |
| (0.77) |
| 19.67 |
|
2020 |
15.61 |
| 0.15 |
| 0.54 |
| 0.69 |
| (0.13) |
| (0.82) |
| (0.95) |
| 15.35 |
|
2019 |
15.01 |
| 0.22 |
| 1.38 |
| 1.60 |
| (0.16) |
| (0.84) |
| (1.00) |
| 15.61 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
14.50 |
| 0.11 |
| 0.80 |
| 0.91 |
| (0.09) |
| (1.12) |
| (1.21) |
| 14.20 |
|
2022 |
19.64 |
| 0.46 |
| (4.20) |
| (3.74) |
| (0.46) |
| (0.94) |
| (1.40) |
| 14.50 |
|
2021 |
15.33 |
| 0.16 |
| 4.97 |
| 5.13 |
| (0.20) |
| (0.62) |
| (0.82) |
| 19.64 |
|
2020 |
15.60 |
| 0.20 |
| 0.56 |
| 0.76 |
| (0.21) |
| (0.82) |
| (1.03) |
| 15.33 |
|
2019 |
15.02 |
| 0.23 |
| 1.41 |
| 1.64 |
| (0.22) |
| (0.84) |
| (1.06) |
| 15.60 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
14.63 |
| 0.14 |
| 0.81 |
| 0.95 |
| (0.12) |
| (1.12) |
| (1.24) |
| 14.34 |
|
2022 |
19.81 |
| 0.50 |
| (4.26) |
| (3.76) |
| (0.48) |
| (0.94) |
| (1.42) |
| 14.63 |
|
2021 |
15.44 |
| 0.21 |
| 5.00 |
| 5.21 |
| (0.22) |
| (0.62) |
| (0.84) |
| 19.81 |
|
2020 |
15.71 |
| 0.27 |
| 0.52 |
| 0.79 |
| (0.24) |
| (0.82) |
| (1.06) |
| 15.44 |
|
2019 |
15.12 |
| 0.27 |
| 1.40 |
| 1.67 |
| (0.24) |
| (0.84) |
| (1.08) |
| 15.71 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
14.69 |
| 0.17 |
| 0.79 |
| 0.96 |
| (0.14) |
| (1.12) |
| (1.26) |
| 14.39 |
|
2022 |
19.88 |
| 0.51 |
| (4.25) |
| (3.74) |
| (0.51) |
| (0.94) |
| (1.45) |
| 14.69 |
|
2021 |
15.49 |
| 0.23 |
| 5.02 |
| 5.25 |
| (0.24) |
| (0.62) |
| (0.86) |
| 19.88 |
|
2020 |
15.76 |
| 0.25 |
| 0.55 |
| 0.80 |
| (0.25) |
| (0.82) |
| (1.07) |
| 15.49 |
|
2019 |
15.17 |
| 0.28 |
| 1.41 |
| 1.69 |
| (0.26) |
| (0.84) |
| (1.10) |
| 15.76 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Gross Expenses to
Average
Net
Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
6.94 |
% |
(b) |
$90,827 |
| 0.38 |
% |
(c) |
– |
% |
| 0.97 |
% |
10.6 |
% |
(20.32) |
| (b) |
87,266 |
| 0.38 |
| (c) |
– |
|
| 2.93 |
| 26.9 |
|
34.64 |
| (b) |
105,294 |
| 0.38 |
| (c) |
– |
|
| 1.11 |
| 21.0 |
|
5.06 |
| (b) |
77,925 |
| 0.38 |
| (c) |
– |
|
| 1.56 |
| 26.9 |
|
12.47 |
| (b) |
76,784 |
| 0.38 |
| (c) |
– |
|
| 1.77 |
| 17.3 |
|
|
|
|
|
|
|
|
| |
7.14 |
| (b) |
242,027 |
| 0.23 |
| (d) |
0.25 |
| (e) |
1.12 |
| 10.6 |
|
(20.17) |
| (b) |
235,469 |
| 0.22 |
| (d) |
0.24 |
| (e) |
3.17 |
| 26.9 |
|
34.90 |
| (b) |
312,540 |
| 0.21 |
| (d) |
0.24 |
| (e) |
1.29 |
| 21.0 |
|
5.18 |
| (b) |
237,515 |
| 0.22 |
| (d) |
0.25 |
| (e) |
1.74 |
| 26.9 |
|
12.60 |
| (b) |
238,083 |
| 0.24 |
| (d) |
0.27 |
| (e) |
1.84 |
| 17.3 |
|
|
|
|
|
|
|
|
| |
7.31 |
|
| 2,116,797 |
| 0.01 |
|
| – |
|
| 1.32 |
| 10.6 |
|
(19.96) |
|
| 1,951,777 |
| 0.01 |
|
| – |
|
| 3.29 |
| 26.9 |
|
35.15 |
|
| 2,422,742 |
| 0.01 |
|
| – |
|
| 1.49 |
| 21.0 |
|
5.37 |
|
| 1,754,692 |
| 0.01 |
|
| – |
|
| 1.91 |
| 26.9 |
|
12.92 |
|
| 1,693,422 |
| 0.01 |
|
| – |
|
| 2.10 |
| 17.3 |
|
|
|
|
|
|
|
|
| |
6.40 |
|
| 10,281 |
| 0.88 |
|
| – |
|
| 0.47 |
| 10.6 |
|
(20.65) |
|
| 10,416 |
| 0.88 |
|
| – |
|
| 2.41 |
| 26.9 |
|
33.91 |
| (f) |
13,259 |
| 0.88 |
|
| – |
|
| 0.64 |
| 21.0 |
|
4.50 |
| (f) |
10,957 |
| 0.88 |
|
| – |
|
| 1.01 |
| 26.9 |
|
11.93 |
|
| 12,804 |
| 0.88 |
|
| – |
|
| 1.52 |
| 17.3 |
|
|
|
|
|
|
|
|
| |
6.73 |
|
| 76,894 |
| 0.57 |
|
| – |
|
| 0.76 |
| 10.6 |
|
(20.41) |
|
| 71,732 |
| 0.57 |
|
| – |
|
| 2.80 |
| 26.9 |
|
34.33 |
|
| 94,767 |
| 0.57 |
|
| – |
|
| 0.87 |
| 21.0 |
|
4.87 |
|
| 68,182 |
| 0.57 |
|
| – |
|
| 1.35 |
| 26.9 |
|
12.24 |
|
| 67,825 |
| 0.57 |
|
| – |
|
| 1.57 |
| 17.3 |
|
|
|
|
|
|
|
|
| |
6.96 |
|
| 34,542 |
| 0.38 |
|
| – |
|
| 0.93 |
| 10.6 |
|
(20.32) |
|
| 33,403 |
| 0.38 |
|
| – |
|
| 3.01 |
| 26.9 |
|
34.66 |
|
| 44,900 |
| 0.38 |
|
| – |
|
| 1.15 |
| 21.0 |
|
5.03 |
|
| 36,458 |
| 0.38 |
|
| – |
|
| 1.78 |
| 26.9 |
|
12.44 |
|
| 45,136 |
| 0.38 |
|
| – |
|
| 1.84 |
| 17.3 |
|
|
|
|
|
|
|
|
| |
7.00 |
|
| 93,301 |
| 0.26 |
|
| – |
|
| 1.16 |
| 10.6 |
|
(20.18) |
|
| 99,622 |
| 0.26 |
|
| – |
|
| 3.12 |
| 26.9 |
|
34.84 |
|
| 128,805 |
| 0.26 |
|
| – |
|
| 1.27 |
| 21.0 |
|
5.12 |
|
| 104,577 |
| 0.26 |
|
| – |
|
| 1.66 |
| 26.9 |
|
12.60 |
|
| 103,868 |
| 0.26 |
|
| – |
|
| 1.88 |
| 17.3 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit.
(d)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(e)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(f)Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which a shareholder would have paid or received from a subscription or
redemption.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME
2055
FUND |
|
|
|
|
|
| |
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
$13.75 |
| $0.18 |
| $0.78 |
| $0.96 |
| ($0.17) |
| ($0.95) |
| ($1.12) |
| $13.59 |
|
2022 |
18.20 |
| 0.48 |
| (3.92) |
| (3.44) |
| (0.51) |
| (0.50) |
| (1.01) |
| 13.75 |
|
2021 |
13.87 |
| 0.23 |
| 4.71 |
| 4.94 |
| (0.25) |
| (0.36) |
| (0.61) |
| 18.20 |
|
2020 |
14.00 |
| 0.24 |
| 0.47 |
| 0.71 |
| (0.25) |
| (0.59) |
| (0.84) |
| 13.87 |
|
2019 |
13.22 |
| 0.26 |
| 1.29 |
| 1.55 |
| (0.26) |
| (0.51) |
| (0.77) |
| 14.00 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
13.12 |
| 0.07 |
| 0.72 |
| 0.79 |
| (0.05) |
| (0.95) |
| (1.00) |
| 12.91 |
|
2022 |
17.43 |
| 0.36 |
| (3.79) |
| (3.43) |
| (0.38) |
| (0.50) |
| (0.88) |
| 13.12 |
|
2021 |
13.32 |
| 0.11 |
| 4.49 |
| 4.60 |
| (0.13) |
| (0.36) |
| (0.49) |
| 17.43 |
|
2020 |
13.47 |
| 0.13 |
| 0.43 |
| 0.56 |
| (0.12) |
| (0.59) |
| (0.71) |
| 13.32 |
|
2019 |
12.73 |
| 0.16 |
| 1.24 |
| 1.40 |
| (0.15) |
| (0.51) |
| (0.66) |
| 13.47 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
13.27 |
| 0.10 |
| 0.74 |
| 0.84 |
| (0.09) |
| (0.95) |
| (1.04) |
| 13.07 |
|
2022 |
17.60 |
| 0.41 |
| (3.82) |
| (3.41) |
| (0.42) |
| (0.50) |
| (0.92) |
| 13.27 |
|
2021 |
13.45 |
| 0.13 |
| 4.56 |
| 4.69 |
| (0.18) |
| (0.36) |
| (0.54) |
| 17.60 |
|
2020 |
13.60 |
| 0.17 |
| 0.45 |
| 0.62 |
| (0.18) |
| (0.59) |
| (0.77) |
| 13.45 |
|
2019 |
12.86 |
| 0.19 |
| 1.25 |
| 1.44 |
| (0.19) |
| (0.51) |
| (0.70) |
| 13.60 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
13.46 |
| 0.12 |
| 0.75 |
| 0.87 |
| (0.11) |
| (0.95) |
| (1.06) |
| 13.27 |
|
2022 |
17.83 |
| 0.43 |
| (3.86) |
| (3.43) |
| (0.44) |
| (0.50) |
| (0.94) |
| 13.46 |
|
2021 |
13.61 |
| 0.19 |
| 4.59 |
| 4.78 |
| (0.20) |
| (0.36) |
| (0.56) |
| 17.83 |
|
2020 |
13.75 |
| 0.21 |
| 0.44 |
| 0.65 |
| (0.20) |
| (0.59) |
| (0.79) |
| 13.61 |
|
2019 |
12.98 |
| 0.22 |
| 1.27 |
| 1.49 |
| (0.21) |
| (0.51) |
| (0.72) |
| 13.75 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
13.52 |
| 0.17 |
| 0.72 |
| 0.89 |
| (0.13) |
| (0.95) |
| (1.08) |
| 13.33 |
|
2022 |
17.91 |
| 0.47 |
| (3.90) |
| (3.43) |
| (0.46) |
| (0.50) |
| (0.96) |
| 13.52 |
|
2021 |
13.66 |
| 0.20 |
| 4.63 |
| 4.83 |
| (0.22) |
| (0.36) |
| (0.58) |
| 17.91 |
|
2020 |
13.80 |
| 0.21 |
| 0.46 |
| 0.67 |
| (0.22) |
| (0.59) |
| (0.81) |
| 13.66 |
|
2019 |
13.05 |
| 0.23 |
| 1.26 |
| 1.49 |
| (0.23) |
| (0.51) |
| (0.74) |
| 13.80 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
| |
|
|
|
| |
7.38 |
% |
$744,667 |
| 0.01 |
% |
1.28 |
% |
10.3 |
% |
(19.95) |
| 613,004 |
| 0.01 |
| 3.12 |
| 22.6 |
|
36.38 |
| 658,064 |
| 0.01 |
| 1.37 |
| 18.9 |
|
5.07 |
| 421,577 |
| 0.02 |
| 1.81 |
| 28.0 |
|
12.89 |
| 375,813 |
| 0.02 |
| 1.97 |
| 15.5 |
|
|
|
|
| |
6.39 |
| 2,081 |
| 0.89 |
| 0.50 |
| 10.3 |
|
(20.65) |
| 2,912 |
| 0.89 |
| 2.47 |
| 22.6 |
|
35.19 |
| 3,341 |
| 0.89 |
| 0.66 |
| 18.9 |
|
4.12 |
| 2,642 |
| 0.89 |
| 1.04 |
| 28.0 |
|
11.96 |
| 3,121 |
| 0.89 |
| 1.25 |
| 15.5 |
|
|
|
|
| |
6.72 |
| 43,506 |
| 0.58 |
| 0.74 |
| 10.3 |
|
(20.37) |
| 38,419 |
| 0.58 |
| 2.78 |
| 22.6 |
|
35.53 |
| 48,174 |
| 0.58 |
| 0.81 |
| 18.9 |
|
4.53 |
| 32,687 |
| 0.58 |
| 1.34 |
| 28.0 |
|
12.24 |
| 31,793 |
| 0.58 |
| 1.50 |
| 15.5 |
|
|
|
|
| |
6.88 |
| 14,438 |
| 0.39 |
| 0.91 |
| 10.3 |
|
(20.23) |
| 13,440 |
| 0.39 |
| 2.83 |
| 22.6 |
|
35.84 |
| 16,969 |
| 0.39 |
| 1.13 |
| 18.9 |
|
4.69 |
| 14,221 |
| 0.39 |
| 1.63 |
| 28.0 |
|
12.53 |
| 14,729 |
| 0.39 |
| 1.73 |
| 15.5 |
|
|
|
|
| |
7.00 |
| 35,853 |
| 0.27 |
| 1.22 |
| 10.3 |
|
(20.14) |
| 40,556 |
| 0.27 |
| 3.12 |
| 22.6 |
|
36.08 |
| 50,443 |
| 0.27 |
| 1.19 |
| 18.9 |
|
4.81 |
| 38,859 |
| 0.27 |
| 1.62 |
| 28.0 |
|
12.56 |
| 34,838 |
| 0.27 |
| 1.76 |
| 15.5 |
|
(a)Calculated
based on average shares outstanding during the period.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME
2060
FUND |
Class
J shares |
|
|
|
|
|
|
| |
2023 |
$14.52 |
| $0.14 |
| $0.81 |
| $0.95 |
| ($0.12) |
| ($0.99) |
| ($1.11) |
| $14.36 |
|
2022 |
19.13 |
| 0.48 |
| (4.18) |
| (3.70) |
| (0.47) |
| (0.44) |
| (0.91) |
| 14.52 |
|
2021 |
14.47 |
| 0.17 |
| 5.04 |
| 5.21 |
| (0.21) |
| (0.34) |
| (0.55) |
| 19.13 |
|
2020 |
14.61 |
| 0.21 |
| 0.47 |
| 0.68 |
| (0.22) |
| (0.60) |
| (0.82) |
| 14.47 |
|
2019 |
13.68 |
| 0.22 |
| 1.36 |
| 1.58 |
| (0.22) |
| (0.43) |
| (0.65) |
| 14.61 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
14.68 |
| 0.19 |
| 0.82 |
| 1.01 |
| (0.18) |
| (0.99) |
| (1.17) |
| 14.52 |
|
2022 |
19.32 |
| 0.51 |
| (4.17) |
| (3.66) |
| (0.54) |
| (0.44) |
| (0.98) |
| 14.68 |
|
2021 |
14.60 |
| 0.24 |
| 5.08 |
| 5.32 |
| (0.26) |
| (0.34) |
| (0.60) |
| 19.32 |
|
2020 |
14.72 |
| 0.25 |
| 0.49 |
| 0.74 |
| (0.26) |
| (0.60) |
| (0.86) |
| 14.60 |
|
2019 |
13.79 |
| 0.26 |
| 1.37 |
| 1.63 |
| (0.27) |
| (0.43) |
| (0.70) |
| 14.72 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
14.20 |
| 0.06 |
| 0.79 |
| 0.85 |
| (0.07) |
| (0.99) |
| (1.06) |
| 13.99 |
|
2022 |
18.72 |
| 0.35 |
| (4.05) |
| (3.70) |
| (0.38) |
| (0.44) |
| (0.82) |
| 14.20 |
|
2021 |
14.19 |
| 0.11 |
| 4.91 |
| 5.02 |
| (0.15) |
| (0.34) |
| (0.49) |
| 18.72 |
|
2020 |
14.32 |
| 0.14 |
| 0.45 |
| 0.59 |
| (0.12) |
| (0.60) |
| (0.72) |
| 14.19 |
|
2019 |
13.43 |
| 0.15 |
| 1.33 |
| 1.48 |
| (0.16) |
| (0.43) |
| (0.59) |
| 14.32 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
14.41 |
| 0.10 |
| 0.82 |
| 0.92 |
| (0.10) |
| (0.99) |
| (1.09) |
| 14.24 |
|
2022 |
19.00 |
| 0.43 |
| (4.14) |
| (3.71) |
| (0.44) |
| (0.44) |
| (0.88) |
| 14.41 |
|
2021 |
14.38 |
| 0.13 |
| 5.01 |
| 5.14 |
| (0.18) |
| (0.34) |
| (0.52) |
| 19.00 |
|
2020 |
14.52 |
| 0.17 |
| 0.48 |
| 0.65 |
| (0.19) |
| (0.60) |
| (0.79) |
| 14.38 |
|
2019 |
13.61 |
| 0.19 |
| 1.35 |
| 1.54 |
| (0.20) |
| (0.43) |
| (0.63) |
| 14.52 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
14.50 |
| 0.13 |
| 0.81 |
| 0.94 |
| (0.12) |
| (0.99) |
| (1.11) |
| 14.33 |
|
2022 |
19.08 |
| 0.48 |
| (4.16) |
| (3.68) |
| (0.46) |
| (0.44) |
| (0.90) |
| 14.50 |
|
2021 |
14.44 |
| 0.18 |
| 5.01 |
| 5.19 |
| (0.21) |
| (0.34) |
| (0.55) |
| 19.08 |
|
2020 |
14.57 |
| 0.24 |
| 0.44 |
| 0.68 |
| (0.21) |
| (0.60) |
| (0.81) |
| 14.44 |
|
2019 |
13.64 |
| 0.24 |
| 1.34 |
| 1.58 |
| (0.22) |
| (0.43) |
| (0.65) |
| 14.57 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
14.54 |
| 0.18 |
| 0.78 |
| 0.96 |
| (0.14) |
| (0.99) |
| (1.13) |
| 14.37 |
|
2022 |
19.14 |
| 0.48 |
| (4.15) |
| (3.67) |
| (0.49) |
| (0.44) |
| (0.93) |
| 14.54 |
|
2021 |
14.48 |
| 0.20 |
| 5.02 |
| 5.22 |
| (0.22) |
| (0.34) |
| (0.56) |
| 19.14 |
|
2020 |
14.61 |
| 0.20 |
| 0.50 |
| 0.70 |
| (0.23) |
| (0.60) |
| (0.83) |
| 14.48 |
|
2019 |
13.69 |
| 0.24 |
| 1.35 |
| 1.59 |
| (0.24) |
| (0.43) |
| (0.67) |
| 14.61 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Gross Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
6.96 |
% |
(b) |
$14,751 |
| 0.38 |
% |
(c) |
0.46 |
% |
(d) |
0.98 |
% |
10.6 |
% |
(20.23) |
| (b) |
14,614 |
| 0.38 |
| (c) |
0.43 |
| (d) |
2.94 |
| 21.7 |
|
36.62 |
| (b) |
18,803 |
| 0.38 |
| (c) |
0.43 |
| (d) |
0.94 |
| 18.3 |
|
4.61 |
| (b) |
11,740 |
| 0.38 |
| (c) |
0.58 |
| (d) |
1.49 |
| 22.9 |
|
12.54 |
| (b) |
10,924 |
| 0.38 |
| (c) |
0.64 |
| (d) |
1.58 |
| 12.6 |
|
|
|
|
|
|
|
|
| |
7.30 |
|
| 726,855 |
| 0.01 |
|
| – |
|
| 1.28 |
| 10.6 |
|
(19.92) |
|
| 594,766 |
| 0.01 |
|
| – |
|
| 3.13 |
| 21.7 |
|
37.12 |
|
| 629,044 |
| 0.02 |
|
| – |
|
| 1.32 |
| 18.3 |
|
5.02 |
|
| 385,276 |
| 0.02 |
|
| – |
|
| 1.75 |
| 22.9 |
|
12.88 |
|
| 319,472 |
| 0.03 |
| (e) |
– |
|
| 1.87 |
| 12.6 |
|
|
|
|
|
|
|
|
| |
6.35 |
|
| 2,678 |
| 0.89 |
|
| – |
|
| 0.41 |
| 10.6 |
|
(20.60) |
|
| 2,442 |
| 0.89 |
|
| – |
|
| 2.22 |
| 21.7 |
|
35.95 |
|
| 2,430 |
| 0.89 |
|
| – |
|
| 0.65 |
| 18.3 |
|
4.08 |
|
| 1,935 |
| 0.89 |
|
| – |
|
| 1.02 |
| 22.9 |
|
11.91 |
|
| 2,165 |
| 0.89 |
|
| – |
|
| 1.13 |
| 12.6 |
|
|
|
|
|
|
|
|
| |
6.79 |
|
| 24,915 |
| 0.58 |
|
| – |
|
| 0.71 |
| 10.6 |
|
(20.41) |
|
| 19,914 |
| 0.58 |
|
| – |
|
| 2.67 |
| 21.7 |
|
36.38 |
|
| 22,111 |
| 0.58 |
|
| – |
|
| 0.75 |
| 18.3 |
|
4.45 |
|
| 14,091 |
| 0.58 |
|
| – |
|
| 1.23 |
| 22.9 |
|
12.27 |
|
| 12,016 |
| 0.58 |
|
| – |
|
| 1.40 |
| 12.6 |
|
|
|
|
|
|
|
|
| |
6.91 |
|
| 7,200 |
| 0.39 |
|
| – |
|
| 0.86 |
| 10.6 |
|
(20.21) |
|
| 5,694 |
| 0.39 |
|
| – |
|
| 2.95 |
| 21.7 |
|
36.55 |
|
| 7,736 |
| 0.39 |
|
| – |
|
| 1.05 |
| 18.3 |
|
4.67 |
|
| 5,851 |
| 0.39 |
|
| – |
|
| 1.72 |
| 22.9 |
|
12.53 |
|
| 6,603 |
| 0.39 |
|
| – |
|
| 1.72 |
| 12.6 |
|
|
|
|
|
|
|
|
| |
7.05 |
|
| 27,953 |
| 0.27 |
|
| – |
|
| 1.18 |
| 10.6 |
|
(20.10) |
|
| 28,139 |
| 0.27 |
|
| – |
|
| 2.94 |
| 21.7 |
|
36.74 |
|
| 30,796 |
| 0.27 |
|
| – |
|
| 1.13 |
| 18.3 |
|
4.76 |
|
| 20,854 |
| 0.27 |
|
| – |
|
| 1.46 |
| 22.9 |
|
12.62 |
|
| 16,867 |
| 0.27 |
|
| – |
|
| 1.73 |
| 12.6 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(d)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(e)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME
2065
FUND |
|
|
|
|
|
| |
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
$11.71 |
| $0.14 |
| $0.68 |
| $0.82 |
| ($0.14) |
| ($0.60) |
| ($0.74) |
| $11.79 |
|
2022 |
15.19 |
| 0.38 |
| (3.30) |
| (2.92) |
| (0.42) |
| (0.14) |
| (0.56) |
| 11.71 |
|
2021 |
11.33 |
| 0.15 |
| 4.03 |
| 4.18 |
| (0.19) |
| (0.13) |
| (0.32) |
| 15.19 |
|
2020 |
11.19 |
| 0.14 |
| 0.44 |
| 0.58 |
| (0.19) |
| (0.25) |
| (0.44) |
| 11.33 |
|
2019 |
10.25 |
| 0.17 |
| 1.08 |
| 1.25 |
| (0.19) |
| (0.12) |
| (0.31) |
| 11.19 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
11.46 |
| 0.05 |
| 0.65 |
| 0.70 |
| (0.05) |
| (0.60) |
| (0.65) |
| 11.51 |
|
2022 |
14.92 |
| 0.30 |
| (3.28) |
| (2.98) |
| (0.34) |
| (0.14) |
| (0.48) |
| 11.46 |
|
2021 |
11.17 |
| (0.01) |
| 4.01 |
| 4.00 |
| (0.12) |
| (0.13) |
| (0.25) |
| 14.92 |
|
2020 |
11.05 |
| 0.29 |
| 0.19 |
| 0.48 |
| (0.11) |
| (0.25) |
| (0.36) |
| 11.17 |
|
2019 |
10.16 |
| 0.10 |
| 1.06 |
| 1.16 |
| (0.15) |
| (0.12) |
| (0.27) |
| 11.05 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
11.57 |
| 0.08 |
| 0.66 |
| 0.74 |
| (0.08) |
| (0.60) |
| (0.68) |
| 11.63 |
|
2022 |
15.04 |
| 0.30 |
| (3.26) |
| (2.96) |
| (0.37) |
| (0.14) |
| (0.51) |
| 11.57 |
|
2021 |
11.21 |
| 0.07 |
| 4.00 |
| 4.07 |
| (0.11) |
| (0.13) |
| (0.24) |
| 15.04 |
|
2020 |
11.10 |
| 0.11 |
| 0.40 |
| 0.51 |
| (0.15) |
| (0.25) |
| (0.40) |
| 11.21 |
|
2019 |
10.20 |
| 0.13 |
| 1.05 |
| 1.18 |
| (0.16) |
| (0.12) |
| (0.28) |
| 11.10 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
11.60 |
| 0.10 |
| 0.67 |
| 0.77 |
| (0.10) |
| (0.60) |
| (0.70) |
| 11.67 |
|
2022 |
15.06 |
| 0.37 |
| (3.31) |
| (2.94) |
| (0.38) |
| (0.14) |
| (0.52) |
| 11.60 |
|
2021 |
11.25 |
| 0.13 |
| 3.97 |
| 4.10 |
| (0.16) |
| (0.13) |
| (0.29) |
| 15.06 |
|
2020 |
11.13 |
| 0.17 |
| 0.36 |
| 0.53 |
| (0.16) |
| (0.25) |
| (0.41) |
| 11.25 |
|
2019 |
10.22 |
| 0.15 |
| 1.06 |
| 1.21 |
| (0.18) |
| (0.12) |
| (0.30) |
| 11.13 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
11.63 |
| 0.15 |
| 0.63 |
| 0.78 |
| (0.11) |
| (0.60) |
| (0.71) |
| 11.70 |
|
2022 |
15.10 |
| 0.33 |
| (3.26) |
| (2.93) |
| (0.40) |
| (0.14) |
| (0.54) |
| 11.63 |
|
2021 |
11.27 |
| 0.14 |
| 3.99 |
| 4.13 |
| (0.17) |
| (0.13) |
| (0.30) |
| 15.10 |
|
2020 |
11.16 |
| 0.06 |
| 0.48 |
| 0.54 |
| (0.18) |
| (0.25) |
| (0.43) |
| 11.27 |
|
2019 |
10.24 |
| 0.14 |
| 1.09 |
| 1.23 |
| (0.19) |
| (0.12) |
| (0.31) |
| 11.16 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
| |
|
|
|
|
| |
7.29 |
% |
$126,627 |
| 0.04 |
% |
(b) |
1.18 |
% |
13.7 |
% |
(19.92) |
| 83,762 |
| 0.05 |
| (b) |
2.96 |
| 28.4 |
|
37.37 |
| 73,568 |
| 0.08 |
| (b) |
1.04 |
| 22.5 |
|
5.15 |
| 26,561 |
| 0.08 |
| (b) |
1.28 |
| 55.1 |
|
12.82 |
| 11,938 |
| 0.10 |
| (b) |
1.57 |
| 51.6 |
|
|
|
|
|
| |
6.39 |
| 240 |
| 0.90 |
| (b) |
0.46 |
| 13.7 |
|
(20.61) |
| 268 |
| 0.90 |
| (b) |
2.40 |
| 28.4 |
|
36.21 |
| 176 |
| 0.91 |
| (b) |
(0.10) |
| 22.5 |
|
4.34 |
| 58 |
| 0.93 |
| (b) |
2.64 |
| 55.1 |
|
11.93 |
| 136 |
| 0.93 |
| (b) |
0.93 |
| 51.6 |
|
|
|
|
|
| |
6.65 |
| 7,872 |
| 0.59 |
| (b) |
0.63 |
| 13.7 |
|
(20.37) |
| 4,642 |
| 0.59 |
| (b) |
2.34 |
| 28.4 |
|
36.70 |
| 4,115 |
| 0.60 |
| (b) |
0.49 |
| 22.5 |
|
4.55 |
| 1,590 |
| 0.62 |
| (b) |
1.00 |
| 55.1 |
|
12.19 |
| 2,256 |
| 0.62 |
| (b) |
1.29 |
| 51.6 |
|
|
|
|
|
| |
6.88 |
| 1,517 |
| 0.40 |
| (b) |
0.79 |
| 13.7 |
|
(20.19) |
| 1,102 |
| 0.40 |
| (b) |
2.86 |
| 28.4 |
|
36.90 |
| 1,234 |
| 0.41 |
| (b) |
0.91 |
| 22.5 |
|
4.73 |
| 505 |
| 0.43 |
| (b) |
1.55 |
| 55.1 |
|
12.48 |
| 427 |
| 0.43 |
| (b) |
1.39 |
| 51.6 |
|
|
|
|
|
| |
7.04 |
| 4,707 |
| 0.28 |
| (b) |
1.25 |
| 13.7 |
|
(20.11) |
| 5,055 |
| 0.28 |
| (b) |
2.57 |
| 28.4 |
|
37.09 |
| 3,917 |
| 0.29 |
| (b) |
0.98 |
| 22.5 |
|
4.81 |
| 1,898 |
| 0.31 |
| (b) |
0.52 |
| 55.1 |
|
12.60 |
| 711 |
| 0.31 |
| (b) |
1.37 |
| 51.6 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME 2070 FUND |
|
|
| |
Class
J
shares |
|
|
|
| |
2023(b) |
$10.00 |
| $0.02 |
| $0.07 |
| $0.09 |
| $10.09 |
|
Institutional
shares |
|
|
|
| |
2023(b) |
10.00 |
| 0.03 |
| 0.03 |
| 0.06 |
| 10.06 |
|
R-1
shares |
|
|
|
| |
2023(b) |
10.00 |
| (0.02) |
| 0.02 |
| – |
| 10.00 |
|
R-3
shares |
|
|
|
| |
2023(b) |
10.00 |
| (0.01) |
| 0.03 |
| 0.02 |
| 10.02 |
|
R-4
shares |
|
|
|
| |
2023(b) |
10.00 |
| 0.01 |
| 0.02 |
| 0.03 |
| 10.03 |
|
R-5
shares |
|
|
|
| |
2023(b) |
10.00 |
| 0.02 |
| 0.02 |
| 0.04 |
| 10.04 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average
Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
0.90 |
% |
(c),(d) |
$125 |
| 0.30 |
% |
(e),(f) |
62.61 |
% |
(e),(g) |
0.24 |
% |
(e) |
94.1 |
% |
(e) |
|
|
|
|
|
|
|
|
|
| |
0.60 |
| (c) |
8,476 |
| 0.05 |
| (e),(h) |
– |
|
| 0.49 |
| (e) |
94.1 |
| (e) |
|
|
|
|
|
|
|
|
|
| |
0.00 |
| (c) |
31 |
| 0.93 |
| (e),(h) |
– |
|
| (0.33) |
| (e) |
94.1 |
| (e) |
|
|
|
|
|
|
|
|
|
| |
0.20 |
| (c) |
282 |
| 0.62 |
| (e),(h) |
– |
|
| (0.14) |
| (e) |
94.1 |
| (e) |
|
|
|
|
|
|
|
|
|
| |
0.30 |
| (c) |
55 |
| 0.43 |
| (e),(h) |
– |
|
| 0.13 |
| (e) |
94.1 |
| (e) |
|
|
|
|
|
|
|
|
|
| |
0.40 |
| (c) |
136 |
| 0.31 |
| (e),(h) |
– |
|
| 0.23 |
| (e) |
94.1 |
| (e) |
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Period
from
March
1,
2023,
date
operations
commenced,
through
October
31,
2023.
(c)Total
return
amounts
have
not
been
annualized.
(d)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(e)Computed
on an annualized basis.
(f)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(g)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(h)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME HYBRID 2015 FUND |
|
|
|
|
|
| |
Class
J shares |
|
|
|
|
|
|
| |
2023 |
$10.44 |
| $0.22 |
| $0.12 |
| $0.34 |
| ($0.21) |
| ($0.31) |
| ($0.52) |
| $10.26 |
|
2022 |
12.91 |
| 0.23 |
| (2.00) |
| (1.77) |
| (0.28) |
| (0.42) |
| (0.70) |
| 10.44 |
|
2021 |
11.75 |
| 0.39 |
| 1.34 |
| 1.73 |
| (0.48) |
| (0.09) |
| (0.57) |
12.91 |
|
2020 |
11.39 |
| 0.21 |
| 0.48 |
| 0.69 |
| (0.26) |
| (0.07) |
| (0.33) |
| 11.75 |
|
2019 |
10.63 |
| 0.18 |
| 0.80 |
| 0.98 |
| (0.14) |
| (0.08) |
| (0.22) |
| 11.39 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
10.49 |
| 0.26 |
| 0.10 |
| 0.36 |
| (0.22) |
| (0.31) |
| (0.53) |
| 10.32 |
|
2022 |
12.96 |
| 0.31 |
| (2.07) |
| (1.76) |
| (0.29) |
| (0.42) |
| (0.71) |
| 10.49 |
|
2021 |
11.80 |
| 0.48 |
| 1.27 |
| 1.75 |
| (0.50) |
| (0.09) |
| (0.59) |
| 12.96 |
|
2020 |
11.42 |
| 0.28 |
| 0.45 |
| 0.73 |
| (0.28) |
| (0.07) |
| (0.35) |
| 11.80 |
|
2019 |
10.65 |
| 0.26 |
| 0.74 |
| 1.00 |
| (0.15) |
| (0.08) |
| (0.23) |
| 11.42 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
10.51 |
| 0.28 |
| 0.08 |
| 0.36 |
| (0.22) |
| (0.31) |
| (0.53) |
| 10.34 |
|
2022 |
12.98 |
| 0.32 |
| (2.07) |
| (1.75) |
| (0.30) |
| (0.42) |
| (0.72) |
| 10.51 |
|
2021 |
11.82 |
| 0.50 |
| 1.26 |
| 1.76 |
| (0.51) |
| (0.09) |
| (0.60) |
| 12.98 |
|
2020 |
11.44 |
| 0.27 |
| 0.46 |
| 0.73 |
| (0.28) |
| (0.07) |
| (0.35) |
| 11.82 |
|
2019 |
10.66 |
| 0.14 |
| 0.87 |
| 1.01 |
| (0.15) |
| (0.08) |
| (0.23) |
| 11.44 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
| Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Gross Expenses to Average Net Assets |
| Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
3.27 |
% |
(b) |
$168,885 |
| 0.17 |
% |
(c) |
0.19 |
% |
(d) |
2.07 |
% |
15.8 |
% |
(14.50) |
| (b) |
96,345 |
| 0.23 |
| (c) |
0.25 |
| (d) |
2.07 |
| 18.1 |
|
15.07 |
| (b) |
55,458 |
| 0.23 |
| (c) |
0.25 |
| (d) |
3.10 |
| 20.6 |
|
6.21 |
| (b) |
29,710 |
| 0.28 |
| (c) |
0.31 |
| (d) |
1.84 |
| 32.4 |
|
9.44 |
| (b) |
19,129 |
| 0.30 |
| (c) |
0.44 |
| (d) |
1.67 |
| 31.5 |
|
|
|
|
|
|
|
|
| |
3.48 |
|
| 16,961 |
| 0.05 |
| (e) |
– |
|
| 2.49 |
| 15.8 |
|
(14.35) |
|
| 18,704 |
| 0.05 |
| (e) |
– |
|
| 2.72 |
| 18.1 |
|
15.21 |
|
| 22,888 |
| 0.05 |
| (e) |
– |
|
| 3.85 |
| 20.6 |
|
6.54 |
|
| 19,501 |
| 0.05 |
| (e) |
– |
|
| 2.46 |
| 32.4 |
|
9.63 |
|
| 22,269 |
| 0.05 |
| (e) |
– |
|
| 2.41 |
| 31.5 |
|
|
|
|
|
|
|
|
| |
3.51 |
|
| 31,245 |
| 0.02 |
| (e) |
– |
|
| 2.66 |
| 15.8 |
|
(14.30) |
|
| 46,216 |
| 0.02 |
| (e) |
– |
|
| 2.78 |
| 18.1 |
|
15.21 |
|
| 58,859 |
| 0.02 |
| (e) |
– |
|
| 3.98 |
| 20.6 |
|
6.55 |
|
| 56,576 |
| 0.02 |
| (e) |
– |
|
| 2.34 |
| 32.4 |
|
9.73 |
|
| 61,079 |
| 0.02 |
| (e) |
– |
|
| 1.32 |
| 31.5 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(d)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(e)Reflects
Manager's
contractual
expense
limit.
(f)Period
from
March
1,
2019,
date
operations
commenced,
through
October
31,
2019.
(g)Total
return
amounts
have
not
been
annualized.
(h)Computed
on an annualized basis.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME HYBRID 2020 FUND |
|
|
|
|
|
| |
Class
J shares |
|
|
|
|
|
|
| |
2023 |
$10.80 |
| $0.22 |
| $0.15 |
| $0.37 |
| ($0.21) |
| ($0.50) |
| ($0.71) |
| $10.46 |
|
2022 |
13.47 |
| 0.28 |
| (2.19) |
| (1.91) |
| (0.30) |
| (0.46) |
| (0.76) |
| 10.80 |
|
2021 |
11.92 |
| 0.37 |
| 1.76 |
| 2.13 |
| (0.47) |
| (0.11) |
| (0.58) |
| 13.47 |
|
2020 |
11.54 |
| 0.20 |
| 0.53 |
| 0.73 |
| (0.26) |
| (0.09) |
| (0.35) |
| 11.92 |
|
2019 |
10.85 |
| 0.16 |
| 0.87 |
| 1.03 |
| (0.18) |
| (0.16) |
| (0.34) |
| 11.54 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
10.86 |
| 0.26 |
| 0.13 |
| 0.39 |
| (0.22) |
| (0.50) |
| (0.72) |
| 10.53 |
|
2022 |
13.54 |
| 0.33 |
| (2.24) |
| (1.91) |
| (0.31) |
| (0.46) |
| (0.77) |
| 10.86 |
|
2021 |
11.97 |
| 0.45 |
| 1.71 |
| 2.16 |
| (0.48) |
| (0.11) |
| (0.59) |
| 13.54 |
|
2020 |
11.59 |
| 0.33 |
| 0.41 |
| 0.74 |
| (0.27) |
| (0.09) |
| (0.36) |
| 11.97 |
|
2019 |
10.88 |
| 0.26 |
| 0.79 |
| 1.05 |
| (0.18) |
| (0.16) |
| (0.34) |
| 11.59 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
10.86 |
| 0.27 |
| 0.13 |
| 0.40 |
| (0.23) |
| (0.50) |
| (0.73) |
| 10.53 |
|
2022 |
13.54 |
| 0.33 |
| (2.24) |
| (1.91) |
| (0.31) |
| (0.46) |
| (0.77) |
| 10.86 |
|
2021 |
11.97 |
| 0.49 |
| 1.68 |
| 2.17 |
| (0.49) |
| (0.11) |
| (0.60) |
| 13.54 |
|
2020 |
11.59 |
| 0.26 |
| 0.49 |
| 0.75 |
| (0.28) |
| (0.09) |
| (0.37) |
| 11.97 |
|
2019 |
10.88 |
| 0.12 |
| 0.94 |
| 1.06 |
| (0.19) |
| (0.16) |
| (0.35) |
| 11.59 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Gross Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
3.57 |
% |
(b) |
$265,194 |
| 0.16 |
% |
(c) |
0.18 |
% |
(d) |
2.05 |
% |
18.1 |
% |
(15.02) |
| (b) |
205,008 |
| 0.18 |
| (c) |
0.20 |
| (d) |
2.38 |
| 20.4 |
|
18.31 |
| (b) |
184,994 |
| 0.19 |
| (c) |
0.21 |
| (d) |
2.87 |
| 16.2 |
|
6.38 |
| (b) |
87,239 |
| 0.20 |
| (c) |
0.23 |
| (d) |
1.71 |
| 26.7 |
|
9.89 |
| (b) |
44,553 |
| 0.28 |
| (c) |
0.31 |
| (d) |
1.42 |
| 21.4 |
|
|
|
|
|
|
|
|
| |
3.77 |
|
| 38,504 |
| 0.05 |
| (e) |
– |
|
| 2.39 |
| 18.1 |
|
(14.95) |
|
| 42,581 |
| 0.05 |
| (e) |
– |
|
| 2.78 |
| 20.4 |
|
18.50 |
|
| 58,554 |
| 0.05 |
| (e) |
– |
|
| 3.44 |
| 16.2 |
|
6.50 |
|
| 49,188 |
| 0.05 |
| (e) |
– |
|
| 2.83 |
| 26.7 |
|
10.11 |
|
| 81,108 |
| 0.05 |
| (e) |
– |
|
| 2.34 |
| 21.4 |
|
|
|
|
|
|
|
|
| |
3.81 |
|
| 146,660 |
| 0.02 |
| (e) |
– |
|
| 2.44 |
| 18.1 |
|
(14.91) |
|
| 187,400 |
| 0.02 |
| (e) |
– |
|
| 2.77 |
| 20.4 |
|
18.54 |
|
| 233,947 |
| 0.02 |
| (e) |
– |
|
| 3.78 |
| 16.2 |
|
6.53 |
|
| 212,655 |
| 0.02 |
| (e) |
– |
|
| 2.28 |
| 26.7 |
|
10.16 |
|
| 205,364 |
| 0.02 |
| (e) |
– |
|
| 1.04 |
| 21.4 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(d)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(e)Reflects
Manager's
contractual
expense
limit.
(f)Period
from
March
1,
2019,
date
operations
commenced,
through
October
31,
2019.
(g)Total
return
amounts
have
not
been
annualized.
(h)Computed
on an annualized basis.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME HYBRID 2025 FUND |
|
|
|
|
|
| |
Class
J shares |
|
|
|
|
|
|
| |
2023 |
$11.43 |
| $0.21 |
| $0.23 |
| $0.44 |
| ($0.21) |
| ($0.51) |
| ($0.72) |
| $11.15 |
|
2022 |
14.27 |
| 0.29 |
| (2.42) |
| (2.13) |
| (0.32) |
| (0.39) |
| (0.71) |
| 11.43 |
|
2021 |
12.20 |
| 0.37 |
| 2.25 |
| 2.62 |
| (0.46) |
| (0.09) |
| (0.55) |
| 14.27 |
|
2020 |
11.84 |
| 0.20 |
| 0.55 |
| 0.75 |
| (0.26) |
| (0.13) |
| (0.39) |
| 12.20 |
|
2019 |
11.10 |
| 0.16 |
| 0.92 |
| 1.08 |
| (0.19) |
| (0.15) |
| (0.34) |
| 11.84 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
11.48 |
| 0.25 |
| 0.21 |
| 0.46 |
| (0.22) |
| (0.51) |
| (0.73) |
| 11.21 |
|
2022 |
14.33 |
| 0.34 |
| (2.47) |
| (2.13) |
| (0.33) |
| (0.39) |
| (0.72) |
| 11.48 |
|
2021 |
12.24 |
| 0.45 |
| 2.20 |
| 2.65 |
| (0.47) |
| (0.09) |
| (0.56) |
| 14.33 |
|
2020 |
11.88 |
| 0.28 |
| 0.48 |
| 0.76 |
| (0.27) |
| (0.13) |
| (0.40) |
| 12.24 |
|
2019 |
11.12 |
| 0.25 |
| 0.86 |
| 1.11 |
| (0.20) |
| (0.15) |
| (0.35) |
| 11.88 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
11.49 |
| 0.25 |
| 0.21 |
| 0.46 |
| (0.23) |
| (0.51) |
| (0.74) |
| 11.21 |
|
2022 |
14.34 |
| 0.35 |
| (2.48) |
| (2.13) |
| (0.33) |
| (0.39) |
| (0.72) |
| 11.49 |
|
2021 |
12.25 |
| 0.47 |
| 2.19 |
| 2.66 |
| (0.48) |
| (0.09) |
| (0.57) |
| 14.34 |
|
2020 |
11.89 |
| 0.25 |
| 0.51 |
| 0.76 |
| (0.27) |
| (0.13) |
| (0.40) |
| 12.25 |
|
2019 |
11.13 |
| 0.13 |
| 0.98 |
| 1.11 |
| (0.20) |
| (0.15) |
| (0.35) |
| 11.89 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Gross Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
4.03 |
% |
(b) |
$421,507 |
| 0.15 |
% |
(c) |
0.17 |
% |
(d) |
1.81 |
% |
12.3 |
% |
(15.71) |
| (b) |
272,529 |
| 0.18 |
| (c) |
0.20 |
| (d) |
2.30 |
| 13.6 |
|
21.94 |
| (b) |
207,361 |
| 0.19 |
| (c) |
0.21 |
| (d) |
2.69 |
| 14.2 |
|
6.36 |
| (b) |
95,483 |
| 0.20 |
| (c) |
0.23 |
| (d) |
1.70 |
| 18.6 |
|
10.24 |
| (b) |
48,991 |
| 0.28 |
| (c) |
0.31 |
| (d) |
1.42 |
| 22.5 |
|
|
|
|
|
|
|
|
| |
4.20 |
|
| 61,975 |
| 0.05 |
| (e) |
– |
|
| 2.13 |
| 12.3 |
|
(15.63) |
|
| 64,787 |
| 0.05 |
| (e) |
– |
|
| 2.70 |
| 13.6 |
|
22.14 |
|
| 75,042 |
| 0.05 |
| (e) |
– |
|
| 3.27 |
| 14.2 |
|
6.46 |
|
| 58,524 |
| 0.05 |
| (e) |
– |
|
| 2.38 |
| 18.6 |
|
10.48 |
|
| 63,839 |
| 0.05 |
| (e) |
– |
|
| 2.17 |
| 22.5 |
|
|
|
|
|
|
|
|
| |
4.15 |
|
| 158,302 |
| 0.02 |
| (e) |
– |
|
| 2.19 |
| 12.3 |
|
(15.60) |
|
| 178,008 |
| 0.02 |
| (e) |
– |
|
| 2.73 |
| 13.6 |
|
22.16 |
|
| 206,615 |
| 0.02 |
| (e) |
– |
|
| 3.42 |
| 14.2 |
|
6.49 |
|
| 161,907 |
| 0.02 |
| (e) |
– |
|
| 2.11 |
| 18.6 |
|
10.52 |
|
| 129,870 |
| 0.02 |
| (e) |
– |
|
| 1.13 |
| 22.5 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(d)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(e)Reflects
Manager's
contractual
expense
limit.
(f)Period
from
March
1,
2019,
date
operations
commenced,
through
October
31,
2019.
(g)Total
return
amounts
have
not
been
annualized.
(h)Computed
on an annualized basis.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME HYBRID 2030 FUND |
|
|
|
|
|
| |
Class
J
shares |
|
|
|
|
|
|
| |
2023 |
$11.63 |
| $0.16 |
| $0.31 |
| $0.47 |
| ($0.17) |
| ($0.70) |
| ($0.87) |
| $11.23 |
|
2022 |
14.78 |
| 0.28 |
| (2.67) |
| (2.39) |
| (0.32) |
| (0.44) |
| (0.76) |
| 11.63 |
|
2021 |
12.32 |
| 0.37 |
| 2.67 |
| 3.04 |
| (0.45) |
| (0.13) |
| (0.58) |
| 14.78 |
|
2020 |
11.99 |
| 0.19 |
| 0.57 |
| 0.76 |
| (0.25) |
| (0.18) |
| (0.43) |
| 12.32 |
|
2019 |
11.25 |
| 0.14 |
| 0.99 |
| 1.13 |
| (0.21) |
| (0.18) |
| (0.39) |
| 11.99 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
11.71 |
| 0.19 |
| 0.30 |
| 0.49 |
| (0.19) |
| (0.70) |
| (0.89) |
| 11.31 |
|
2022 |
14.86 |
| 0.33 |
| (2.70) |
| (2.37) |
| (0.34) |
| (0.44) |
| (0.78) |
| 11.71 |
|
2021 |
12.38 |
| 0.41 |
| 2.66 |
| 3.07 |
| (0.46) |
| (0.13) |
| (0.59) |
| 14.86 |
|
2020 |
12.04 |
| 0.35 |
| 0.44 |
| 0.79 |
| (0.27) |
| (0.18) |
| (0.45) |
| 12.38 |
|
2019 |
11.27 |
| 0.24 |
| 0.92 |
| 1.16 |
| (0.21) |
| (0.18) |
| (0.39) |
| 12.04 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
11.71 |
| 0.20 |
| 0.29 |
| 0.49 |
| (0.19) |
| (0.70) |
| (0.89) |
| 11.31 |
|
2022 |
14.86 |
| 0.33 |
| (2.70) |
| (2.37) |
| (0.34) |
| (0.44) |
| (0.78) |
| 11.71 |
|
2021 |
12.37 |
| 0.45 |
| 2.63 |
| 3.08 |
| (0.46) |
| (0.13) |
| (0.59) |
| 14.86 |
|
2020 |
12.03 |
| 0.26 |
| 0.53 |
| 0.79 |
| (0.27) |
| (0.18) |
| (0.45) |
| 12.37 |
|
2019 |
11.27 |
| 0.13 |
| 1.03 |
| 1.16 |
| (0.22) |
| (0.18) |
| (0.40) |
| 12.03 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
|
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
|
Ratio
of
Gross
Expenses
to
Average Net Assets |
|
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
4.25 |
% |
(b) |
$317,418 |
| 0.16 |
% |
(c) |
0.18 |
% |
(d) |
1.41 |
% |
11.5 |
% |
(17.04) |
| (b) |
203,444 |
| 0.19 |
| (c) |
0.21 |
| (d) |
2.17 |
| 16.7 |
|
25.23 |
| (b) |
177,896 |
| 0.20 |
| (c) |
0.22 |
| (d) |
2.61 |
| 14.9 |
|
6.42 |
| (b) |
78,987 |
| 0.22 |
| (c) |
0.25 |
| (d) |
1.60 |
| 26.7 |
|
10.56 |
| (b) |
40,498 |
| 0.30 |
| (c) |
0.37 |
| (d) |
1.25 |
| 16.3 |
|
|
|
|
|
|
|
|
| |
4.35 |
|
| 83,006 |
| 0.05 |
| (e) |
– |
|
| 1.65 |
| 11.5 |
|
(16.87) |
|
| 77,067 |
| 0.05 |
| (e) |
– |
|
| 2.56 |
| 16.7 |
|
25.38 |
|
| 92,984 |
| 0.05 |
| (e) |
– |
|
| 2.93 |
| 14.9 |
|
6.64 |
|
| 60,462 |
| 0.05 |
| (e) |
– |
|
| 2.92 |
| 26.7 |
|
10.88 |
|
| 93,111 |
| 0.05 |
| (e) |
– |
|
| 2.14 |
| 16.3 |
|
|
|
|
|
|
|
|
| |
4.39 |
|
| 245,018 |
| 0.02 |
| (e) |
– |
|
| 1.70 |
| 11.5 |
|
(16.84) |
|
| 237,340 |
| 0.02 |
| (e) |
– |
|
| 2.54 |
| 16.7 |
|
25.52 |
|
| 261,855 |
| 0.02 |
| (e) |
– |
|
| 3.23 |
| 14.9 |
|
6.67 |
|
| 194,059 |
| 0.02 |
| (e) |
– |
|
| 2.15 |
| 26.7 |
|
10.83 |
|
| 161,196 |
| 0.02 |
| (e) |
– |
|
| 1.15 |
| 16.3 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(d)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(e)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME
HYBRID
2035
FUND |
|
|
|
|
|
| |
Class
J
shares |
|
|
|
|
|
|
| |
2023 |
$12.20 |
| $0.17 |
| $0.41 |
| $0.58 |
| ($0.17) |
| ($0.79) |
| ($0.96) |
| $11.82 |
|
2022 |
15.50 |
| 0.31 |
| (2.88) |
| (2.57) |
| (0.34) |
| (0.39) |
| (0.73) |
| 12.20 |
|
2021 |
12.56 |
| 0.33 |
| 3.14 |
| 3.47 |
| (0.42) |
| (0.11) |
| (0.53) |
| 15.50 |
|
2020 |
12.28 |
| 0.18 |
| 0.55 |
| 0.73 |
| (0.26) |
| (0.19) |
| (0.45) |
| 12.56 |
|
2019 |
11.49 |
| 0.14 |
| 1.07 |
| 1.21 |
| (0.21) |
| (0.21) |
| (0.42) |
| 12.28 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
12.28 |
| 0.19 |
| 0.41 |
| 0.60 |
| (0.19) |
| (0.79) |
| (0.98) |
| 11.90 |
|
2022 |
15.59 |
| 0.34 |
| (2.90) |
| (2.56) |
| (0.36) |
| (0.39) |
| (0.75) |
| 12.28 |
|
2021 |
12.62 |
| 0.40 |
| 3.12 |
| 3.52 |
| (0.44) |
| (0.11) |
| (0.55) |
| 15.59 |
|
2020 |
12.33 |
| 0.28 |
| 0.47 |
| 0.75 |
| (0.27) |
| (0.19) |
| (0.46) |
| 12.62 |
|
2019 |
11.51 |
| 0.22 |
| 1.02 |
| 1.24 |
| (0.21) |
| (0.21) |
| (0.42) |
| 12.33 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
12.30 |
| 0.20 |
| 0.40 |
| 0.60 |
| (0.19) |
| (0.79) |
| (0.98) |
| 11.92 |
|
2022 |
15.61 |
| 0.35 |
| (2.91) |
| (2.56) |
| (0.36) |
| (0.39) |
| (0.75) |
| 12.30 |
|
2021 |
12.64 |
| 0.42 |
| 3.10 |
| 3.52 |
| (0.44) |
| (0.11) |
| (0.55) |
| 15.61 |
|
2020 |
12.35 |
| 0.25 |
| 0.51 |
| 0.76 |
| (0.28) |
| (0.19) |
| (0.47) |
| 12.64 |
|
2019 |
11.53 |
| 0.14 |
| 1.10 |
| 1.24 |
| (0.21) |
| (0.21) |
| (0.42) |
| 12.35 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average
Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
4.99 |
% |
(b) |
$226,807 |
| 0.17 |
% |
(c) |
0.19 |
% |
(d) |
1.37 |
% |
13.1 |
% |
(17.38) |
| (b) |
158,186 |
| 0.20 |
| (c) |
0.22 |
| (d) |
2.27 |
| 12.6 |
|
28.22 |
| (b) |
143,236 |
| 0.21 |
| (c) |
0.24 |
| (d) |
2.22 |
| 10.6 |
|
5.94 |
| (b) |
60,829 |
| 0.24 |
| (c) |
0.27 |
| (d) |
1.51 |
| 14.3 |
|
11.12 |
| (b) |
29,770 |
| 0.30 |
| (c) |
0.40 |
| (d) |
1.16 |
| 17.4 |
|
|
|
|
|
|
|
|
| |
5.09 |
|
| 77,698 |
| 0.05 |
| (e) |
– |
|
| 1.55 |
| 13.1 |
|
(17.25) |
|
| 71,210 |
| 0.05 |
| (e) |
– |
|
| 2.50 |
| 12.6 |
|
28.46 |
|
| 79,002 |
| 0.05 |
| (e) |
– |
|
| 2.75 |
| 10.6 |
|
6.15 |
|
| 54,018 |
| 0.05 |
| (e) |
– |
|
| 2.31 |
| 14.3 |
|
11.42 |
|
| 54,756 |
| 0.05 |
| (e) |
– |
|
| 1.90 |
| 17.4 |
|
|
|
|
|
|
|
|
| |
5.12 |
|
| 183,007 |
| 0.02 |
| (e) |
– |
|
| 1.62 |
| 13.1 |
|
(17.21) |
|
| 167,461 |
| 0.02 |
| (e) |
– |
|
| 2.55 |
| 12.6 |
|
28.45 |
|
| 180,539 |
| 0.02 |
| (e) |
– |
|
| 2.84 |
| 10.6 |
|
6.17 |
|
| 124,836 |
| 0.02 |
| (e) |
– |
|
| 2.05 |
| 14.3 |
|
11.45 |
|
| 94,420 |
| 0.02 |
| (e) |
– |
|
| 1.17 |
| 17.4 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(d)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(e)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME HYBRID 2040 FUND |
|
|
|
|
|
| |
Class
J shares |
|
|
|
|
|
|
| |
2023 |
$12.41 |
| $0.15 |
| $0.51 |
| $0.66 |
| ($0.16) |
| ($0.86) |
| ($1.02) |
| $12.05 |
|
2022 |
15.84 |
| 0.30 |
| (2.98) |
| (2.68) |
| (0.35) |
| (0.40) |
| (0.75) |
| 12.41 |
|
2021 |
12.58 |
| 0.30 |
| 3.48 |
| 3.78 |
| (0.38) |
| (0.14) |
| (0.52) |
| 15.84 |
|
2020 |
12.34 |
| 0.19 |
| 0.51 |
| 0.70 |
| (0.25) |
| (0.21) |
| (0.46) |
| 12.58 |
|
2019 |
11.59 |
| 0.11 |
| 1.10 |
| 1.21 |
| (0.21) |
| (0.25) |
| (0.46) |
| 12.34 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
12.50 |
| 0.18 |
| 0.50 |
| 0.68 |
| (0.18) |
| (0.86) |
| (1.04) |
| 12.14 |
|
2022 |
15.93 |
| 0.36 |
| (3.02) |
| (2.66) |
| (0.37) |
| (0.40) |
| (0.77) |
| 12.50 |
|
2021 |
12.64 |
| 0.36 |
| 3.47 |
| 3.83 |
| (0.40) |
| (0.14) |
| (0.54) |
| 15.93 |
|
2020 |
12.40 |
| 0.34 |
| 0.38 |
| 0.72 |
| (0.27) |
| (0.21) |
| (0.48) |
| 12.64 |
|
2019 |
11.62 |
| 0.23 |
| 1.02 |
| 1.25 |
| (0.22) |
| (0.25) |
| (0.47) |
| 12.40 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
12.52 |
| 0.19 |
| 0.49 |
| 0.68 |
| (0.18) |
| (0.86) |
| (1.04) |
| 12.16 |
|
2022 |
15.96 |
| 0.35 |
| (3.02) |
| (2.67) |
| (0.37) |
| (0.40) |
| (0.77) |
| 12.52 |
|
2021 |
12.66 |
| 0.38 |
| 3.46 |
| 3.84 |
| (0.40) |
| (0.14) |
| (0.54) |
| 15.96 |
|
2020 |
12.41 |
| 0.25 |
| 0.48 |
| 0.73 |
| (0.27) |
| (0.21) |
| (0.48) |
| 12.66 |
|
2019 |
11.63 |
| 0.12 |
| 1.13 |
| 1.25 |
| (0.22) |
| (0.25) |
| (0.47) |
| 12.41 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average
Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
5.74 |
% |
(b) |
$234,630 |
| 0.18 |
% |
(c) |
0.20 |
% |
(d) |
1.21 |
% |
10.8 |
% |
(17.72) |
| (b) |
138,511 |
| 0.21 |
| (c) |
0.23 |
| (d) |
2.18 |
| 13.5 |
|
30.64 |
| (b) |
115,496 |
| 0.22 |
| (c) |
0.24 |
| (d) |
1.98 |
| 12.9 |
|
5.74 |
| (b) |
49,746 |
| 0.26 |
| (c) |
0.29 |
| (d) |
1.60 |
| 22.5 |
|
11.18 |
| (b) |
26,552 |
| 0.30 |
| (c) |
0.42 |
| (d) |
0.94 |
| 14.9 |
|
|
|
|
|
|
|
|
| |
5.83 |
|
| 67,043 |
| 0.05 |
| (e) |
– |
|
| 1.47 |
| 10.8 |
|
(17.53) |
|
| 58,528 |
| 0.05 |
| (e) |
– |
|
| 2.58 |
| 13.5 |
|
30.90 |
|
| 68,006 |
| 0.05 |
| (e) |
– |
|
| 2.42 |
| 12.9 |
|
5.86 |
|
| 44,657 |
| 0.05 |
| (e) |
– |
|
| 2.75 |
| 22.5 |
|
11.49 |
|
| 65,024 |
| 0.05 |
| (e) |
– |
|
| 1.96 |
| 14.9 |
|
|
|
|
|
|
|
|
| |
5.86 |
|
| 210,538 |
| 0.02 |
| (e) |
– |
|
| 1.52 |
| 10.8 |
|
(17.54) |
|
| 187,431 |
| 0.02 |
| (e) |
– |
|
| 2.50 |
| 13.5 |
|
30.97 |
|
| 194,948 |
| 0.02 |
| (e) |
– |
|
| 2.56 |
| 12.9 |
|
5.97 |
|
| 137,469 |
| 0.02 |
| (e) |
– |
|
| 2.08 |
| 22.5 |
|
11.52 |
|
| 112,973 |
| 0.02 |
| (e) |
– |
|
| 1.04 |
| 14.9 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(d)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(e)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME HYBRID 2045 FUND |
|
|
|
|
|
| |
Class
J shares |
|
|
|
|
|
|
| |
2023 |
$12.82 |
| $0.15 |
| $0.59 |
| $0.74 |
| ($0.16) |
| ($0.98) |
| ($1.14) |
| $12.42 |
|
2022 |
16.35 |
| 0.30 |
| (3.09) |
| (2.79) |
| (0.37) |
| (0.37) |
| (0.74) |
| 12.82 |
|
2021 |
12.71 |
| 0.28 |
| 3.83 |
| 4.11 |
| (0.35) |
| (0.12) |
| (0.47) |
| 16.35 |
|
2020 |
12.46 |
| 0.18 |
| 0.52 |
| 0.70 |
| (0.25) |
| (0.20) |
| (0.45) |
| 12.71 |
|
2019 |
11.72 |
| 0.10 |
| 1.12 |
| 1.22 |
| (0.21) |
| (0.27) |
| (0.48) |
| 12.46 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
12.90 |
| 0.18 |
| 0.59 |
| 0.77 |
| (0.18) |
| (0.98) |
| (1.16) |
| 12.51 |
|
2022 |
16.44 |
| 0.36 |
| (3.14) |
| (2.78) |
| (0.39) |
| (0.37) |
| (0.76) |
| 12.90 |
|
2021 |
12.77 |
| 0.34 |
| 3.82 |
| 4.16 |
| (0.37) |
| (0.12) |
| (0.49) |
| 16.44 |
|
2020 |
12.51 |
| 0.28 |
| 0.45 |
| 0.73 |
| (0.27) |
| (0.20) |
| (0.47) |
| 12.77 |
|
2019 |
11.74 |
| 0.21 |
| 1.05 |
| 1.26 |
| (0.22) |
| (0.27) |
| (0.49) |
| 12.51 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
12.92 |
| 0.18 |
| 0.59 |
| 0.77 |
| (0.18) |
| (0.98) |
| (1.16) |
| 12.53 |
|
2022 |
16.46 |
| 0.36 |
| (3.14) |
| (2.78) |
| (0.39) |
| (0.37) |
| (0.76) |
| 12.92 |
|
2021 |
12.79 |
| 0.35 |
| 3.81 |
| 4.16 |
| (0.37) |
| (0.12) |
| (0.49) |
| 16.46 |
|
2020 |
12.53 |
| 0.24 |
| 0.49 |
| 0.73 |
| (0.27) |
| (0.20) |
| (0.47) |
| 12.79 |
|
2019 |
11.75 |
| 0.11 |
| 1.16 |
| 1.27 |
| (0.22) |
| (0.27) |
| (0.49) |
| 12.53 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average
Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
6.18 |
% |
(b) |
$125,834 |
| 0.21 |
% |
(c) |
0.23 |
% |
(d) |
1.15 |
% |
10.8 |
% |
(17.90) |
| (b) |
86,099 |
| 0.24 |
| (c) |
0.26 |
| (d) |
2.10 |
| 15.9 |
|
32.92 |
| (b) |
70,004 |
| 0.26 |
| (c) |
0.28 |
| (d) |
1.81 |
| 13.5 |
|
5.58 |
| (b) |
30,151 |
| 0.30 |
| (c) |
0.35 |
| (d) |
1.46 |
| 14.5 |
|
11.20 |
| (b) |
14,776 |
| 0.30 |
| (c) |
0.60 |
| (d) |
0.84 |
| 17.7 |
|
|
|
|
|
|
|
|
| |
6.39 |
|
| 56,859 |
| 0.05 |
| (e) |
– |
|
| 1.38 |
| 10.8 |
|
(17.75) |
|
| 49,445 |
| 0.05 |
| (e) |
– |
|
| 2.52 |
| 15.9 |
|
33.20 |
|
| 55,809 |
| 0.05 |
| (e) |
– |
|
| 2.22 |
| 13.5 |
|
5.80 |
|
| 36,546 |
| 0.05 |
| (e) |
– |
|
| 2.30 |
| 14.5 |
|
11.53 |
|
| 38,651 |
| 0.05 |
| (e) |
– |
|
| 1.80 |
| 17.7 |
|
|
|
|
|
|
|
|
| |
6.42 |
|
| 147,185 |
| 0.02 |
| (e) |
– |
|
| 1.39 |
| 10.8 |
|
(17.71) |
|
| 119,980 |
| 0.02 |
| (e) |
– |
|
| 2.49 |
| 15.9 |
|
33.18 |
|
| 122,476 |
| 0.02 |
| (e) |
– |
|
| 2.30 |
| 13.5 |
|
5.81 |
|
| 82,272 |
| 0.02 |
| (e) |
– |
|
| 1.95 |
| 14.5 |
|
11.62 |
|
| 59,532 |
| 0.02 |
| (e) |
– |
|
| 0.94 |
| 17.7 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(d)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(e)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME HYBRID 2050 FUND |
|
|
|
|
|
| |
Class
J shares |
|
|
|
|
|
|
| |
2023 |
$12.98 |
| $0.14 |
| $0.64 |
| $0.78 |
| ($0.15) |
| ($0.97) |
| ($1.12) |
| $12.64 |
|
2022 |
16.55 |
| 0.29 |
| (3.14) |
| (2.85) |
| (0.36) |
| (0.36) |
| (0.72) |
| 12.98 |
|
2021 |
12.73 |
| 0.26 |
| 4.02 |
| 4.28 |
| (0.32) |
| (0.14) |
| (0.46) |
| 16.55 |
|
2020 |
12.56 |
| 0.17 |
| 0.51 |
| 0.68 |
| (0.25) |
| (0.26) |
| (0.51) |
| 12.73 |
|
2019 |
11.79 |
| 0.11 |
| 1.12 |
| 1.23 |
| (0.22) |
| (0.24) |
| (0.46) |
| 12.56 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
13.05 |
| 0.17 |
| 0.64 |
| 0.81 |
| (0.18) |
| (0.97) |
| (1.15) |
| 12.71 |
|
2022 |
16.63 |
| 0.36 |
| (3.19) |
| (2.83) |
| (0.39) |
| (0.36) |
| (0.75) |
| 13.05 |
|
2021 |
12.77 |
| 0.32 |
| 4.02 |
| 4.34 |
| (0.34) |
| (0.14) |
| (0.48) |
| 16.63 |
|
2020 |
12.59 |
| 0.36 |
| 0.34 |
| 0.70 |
| (0.26) |
| (0.26) |
| (0.52) |
| 12.77 |
|
2019 |
11.79 |
| 0.22 |
| 1.05 |
| 1.27 |
| (0.23) |
| (0.24) |
| (0.47) |
| 12.59 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
13.05 |
| 0.17 |
| 0.65 |
| 0.82 |
| (0.18) |
| (0.97) |
| (1.15) |
| 12.72 |
|
2022 |
16.63 |
| 0.35 |
| (3.17) |
| (2.82) |
| (0.40) |
| (0.36) |
| (0.76) |
| 13.05 |
|
2021 |
12.78 |
| 0.32 |
| 4.01 |
| 4.33 |
| (0.34) |
| (0.14) |
| (0.48) |
| 16.63 |
|
2020 |
12.59 |
| 0.23 |
| 0.49 |
| 0.72 |
| (0.27) |
| (0.26) |
| (0.53) |
| 12.78 |
|
2019 |
11.80 |
| 0.11 |
| 1.15 |
| 1.26 |
| (0.23) |
| (0.24) |
| (0.47) |
| 12.59 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average
Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
6.52 |
% |
(b) |
$103,198 |
| 0.23 |
% |
(c) |
0.25 |
% |
(d) |
1.05 |
% |
8.5 |
% |
(18.01) |
| (b) |
70,033 |
| 0.26 |
| (c) |
0.28 |
| (d) |
2.05 |
| 16.3 |
|
34.17 |
| (b) |
57,162 |
| 0.28 |
| (c) |
0.30 |
| (d) |
1.65 |
| 12.1 |
|
5.36 |
| (b) |
25,905 |
| 0.30 |
| (c) |
0.40 |
| (d) |
1.39 |
| 26.5 |
|
11.25 |
| (b) |
12,754 |
| 0.30 |
| (c) |
0.69 |
| (d) |
0.95 |
| 12.6 |
|
|
|
|
|
|
|
|
| |
6.68 |
|
| 46,298 |
| 0.05 |
| (e) |
– |
|
| 1.32 |
| 8.5 |
|
(17.85) |
|
| 39,987 |
| 0.05 |
| (e) |
– |
|
| 2.47 |
| 16.3 |
|
34.60 |
|
| 43,480 |
| 0.05 |
| (e) |
– |
|
| 2.04 |
| 12.1 |
|
5.58 |
|
| 28,345 |
| 0.05 |
| (e) |
– |
|
| 2.87 |
| 26.5 |
|
11.60 |
|
| 44,432 |
| 0.05 |
| (e) |
– |
|
| 1.88 |
| 12.6 |
|
|
|
|
|
|
|
|
| |
6.80 |
|
| 139,155 |
| 0.02 |
| (e) |
– |
|
| 1.30 |
| 8.5 |
|
(17.83) |
|
| 108,293 |
| 0.02 |
| (e) |
– |
|
| 2.45 |
| 16.3 |
|
34.53 |
|
| 105,040 |
| 0.02 |
| (e) |
– |
|
| 2.08 |
| 12.1 |
|
5.68 |
|
| 64,444 |
| 0.02 |
| (e) |
– |
|
| 1.91 |
| 26.5 |
|
11.52 |
|
| 45,364 |
| 0.02 |
| (e) |
– |
|
| 0.95 |
| 12.6 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(d)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(e)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME
HYBRID
2055
FUND |
|
|
|
|
|
| |
Class
J shares |
|
|
|
|
|
|
| |
2023 |
$13.31 |
| $0.12 |
| $0.68 |
| $0.80 |
| ($0.16) |
| ($0.95) |
| ($1.11) |
| $13.00 |
|
2022 |
16.92 |
| 0.29 |
| (3.22) |
| (2.93) |
| (0.37) |
| (0.31) |
| (0.68) |
| 13.31 |
|
2021 |
12.86 |
| 0.21 |
| 4.28 |
| 4.49 |
| (0.30) |
| (0.13) |
| (0.43) |
| 16.92 |
|
2020 |
12.67 |
| 0.17 |
| 0.45 |
| 0.62 |
| (0.25) |
| (0.18) |
| (0.43) |
| 12.86 |
|
2019 |
11.91 |
| 0.09 |
| 1.16 |
| 1.25 |
| (0.23) |
| (0.26) |
| (0.49) |
| 12.67 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
13.40 |
| 0.17 |
| 0.66 |
| 0.83 |
| (0.18) |
| (0.95) |
| (1.13) |
| 13.10 |
|
2022 |
17.01 |
| 0.36 |
| (3.26) |
| (2.90) |
| (0.40) |
| (0.31) |
| (0.71) |
| 13.40 |
|
2021 |
12.92 |
| 0.28 |
| 4.27 |
| 4.55 |
| (0.33) |
| (0.13) |
| (0.46) |
| 17.01 |
|
2020 |
12.71 |
| 0.29 |
| 0.37 |
| 0.66 |
| (0.27) |
| (0.18) |
| (0.45) |
| 12.92 |
|
2019 |
11.93 |
| 0.20 |
| 1.08 |
| 1.28 |
| (0.24) |
| (0.26) |
| (0.50) |
| 12.71 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
13.43 |
| 0.17 |
| 0.67 |
| 0.84 |
| (0.19) |
| (0.95) |
| (1.14) |
| 13.13 |
|
2022 |
17.04 |
| 0.35 |
| (3.25) |
| (2.90) |
| (0.40) |
| (0.31) |
| (0.71) |
| 13.43 |
|
2021 |
12.94 |
| 0.30 |
| 4.26 |
| 4.56 |
| (0.33) |
| (0.13) |
| (0.46) |
| 17.04 |
|
2020 |
12.72 |
| 0.22 |
| 0.45 |
| 0.67 |
| (0.27) |
| (0.18) |
| (0.45) |
| 12.94 |
|
2019 |
11.94 |
| 0.09 |
| 1.19 |
| 1.28 |
| (0.24) |
| (0.26) |
| (0.50) |
| 12.72 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
6.44 |
% |
(b) |
$55,536 |
| 0.30 |
% |
(c) |
0.35 |
% |
(d) |
0.91 |
% |
7.3 |
% |
(18.06) |
| (b) |
32,146 |
| 0.30 |
| (c) |
0.39 |
| (d) |
1.96 |
| 13.4 |
|
35.47 |
| (b) |
24,427 |
| 0.30 |
| (c) |
0.44 |
| (d) |
1.30 |
| 9.1 |
|
4.91 |
| (b) |
9,235 |
| 0.30 |
| (c) |
0.73 |
| (d) |
1.34 |
| 14.2 |
|
11.29 |
| (b) |
4,097 |
| 0.30 |
| (c) |
1.63 |
| (d) |
0.74 |
| 22.3 |
|
|
|
|
|
|
|
|
| |
6.70 |
|
| 30,824 |
| 0.05 |
| (e) |
– |
|
| 1.27 |
| 7.3 |
|
(17.82) |
|
| 24,173 |
| 0.05 |
| (e) |
– |
|
| 2.45 |
| 13.4 |
|
35.76 |
|
| 25,049 |
| 0.05 |
| (e) |
– |
|
| 1.74 |
| 9.1 |
|
5.19 |
|
| 13,916 |
| 0.05 |
| (e) |
– |
|
| 2.30 |
| 14.2 |
|
11.53 |
|
| 14,697 |
| 0.05 |
| (e) |
– |
|
| 1.68 |
| 22.3 |
|
|
|
|
|
|
|
|
| |
6.72 |
|
| 80,370 |
| 0.02 |
| (e) |
– |
|
| 1.24 |
| 7.3 |
|
(17.77) |
|
| 55,493 |
| 0.02 |
| (e) |
– |
|
| 2.39 |
| 13.4 |
|
35.79 |
|
| 50,453 |
| 0.02 |
| (e) |
– |
|
| 1.92 |
| 9.1 |
|
5.26 |
|
| 28,721 |
| 0.02 |
| (e) |
– |
|
| 1.78 |
| 14.2 |
|
11.52 |
|
| 17,525 |
| 0.02 |
| (e) |
– |
|
| 0.77 |
| 22.3 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(d)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(e)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
|
Net
Asset
Value,
Beginning
of
Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME HYBRID 2060 FUND |
|
|
|
|
|
| |
Class
J shares |
|
|
|
|
|
|
| |
2023 |
$13.56 |
| $0.12 |
| $0.70 |
| $0.82 |
| ($0.16) |
| ($0.83) |
| ($0.99) |
| $13.39 |
|
2022 |
17.18 |
| 0.27 |
| (3.26) |
| (2.99) |
| (0.38) |
| (0.25) |
| (0.63) |
| 13.56 |
|
2021 |
12.97 |
| 0.19 |
| 4.44 |
| 4.63 |
| (0.30) |
| (0.12) |
| (0.42) |
| 17.18 |
|
2020 |
12.81 |
| 0.14 |
| 0.49 |
| 0.63 |
| (0.26) |
| (0.21) |
| (0.47) |
| 12.97 |
|
2019 |
11.91 |
| 0.11 |
| 1.17 |
| 1.28 |
| (0.24) |
| (0.14) |
| (0.38) |
| 12.81 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
13.71 |
| 0.17 |
| 0.69 |
| 0.86 |
| (0.19) |
| (0.83) |
| (1.02) |
| 13.55 |
|
2022 |
17.33 |
| 0.35 |
| (3.31) |
| (2.96) |
| (0.41) |
| (0.25) |
| (0.66) |
| 13.71 |
|
2021 |
13.07 |
| 0.24 |
| 4.45 |
| 4.69 |
| (0.31) |
| (0.12) |
| (0.43) |
| 17.33 |
|
2020 |
12.87 |
| 0.30 |
| 0.38 |
| 0.68 |
| (0.27) |
| (0.21) |
| (0.48) |
| 13.07 |
|
2019 |
11.94 |
| 0.19 |
| 1.12 |
| 1.31 |
| (0.24) |
| (0.14) |
| (0.38) |
| 12.87 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
13.74 |
| 0.17 |
| 0.70 |
| 0.87 |
| (0.19) |
| (0.83) |
| (1.02) |
| 13.59 |
|
2022 |
17.37 |
| 0.35 |
| (3.32) |
| (2.97) |
| (0.41) |
| (0.25) |
| (0.66) |
| 13.74 |
|
2021 |
13.09 |
| 0.28 |
| 4.43 |
| 4.71 |
| (0.31) |
| (0.12) |
| (0.43) |
| 17.37 |
|
2020 |
12.89 |
| 0.22 |
| 0.46 |
| 0.68 |
| (0.27) |
| (0.21) |
| (0.48) |
| 13.09 |
|
2019 |
11.95 |
| 0.11 |
| 1.21 |
| 1.32 |
| (0.24) |
| (0.14) |
| (0.38) |
| 12.89 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
6.47 |
% |
(b) |
$27,750 |
| 0.30 |
% |
(c) |
0.52 |
% |
(d) |
0.89 |
% |
7.6 |
% |
(18.08) |
| (b) |
15,523 |
| 0.30 |
| (c) |
0.58 |
| (d) |
1.79 |
| 13.8 |
|
36.20 |
| (b) |
9,593 |
| 0.30 |
| (c) |
0.82 |
| (d) |
1.16 |
| 12.9 |
|
4.97 |
| (b) |
3,203 |
| 0.30 |
| (c) |
1.72 |
| (d) |
1.15 |
| 31.4 |
|
11.30 |
| (b) |
1,426 |
| 0.30 |
| (c) |
3.92 |
| (d) |
0.92 |
| 15.9 |
|
|
|
|
|
|
|
|
| |
6.68 |
|
| 14,276 |
| 0.05 |
| (e) |
– |
|
| 1.23 |
| 7.6 |
|
(17.80) |
|
| 10,035 |
| 0.05 |
| (e) |
– |
|
| 2.35 |
| 13.8 |
|
36.46 |
|
| 9,423 |
| 0.05 |
| (e) |
– |
|
| 1.48 |
| 12.9 |
|
5.30 |
|
| 4,268 |
| 0.05 |
| (e) |
– |
|
| 2.39 |
| 31.4 |
|
11.53 |
|
| 5,085 |
| 0.05 |
| (e) |
– |
|
| 1.53 |
| 15.9 |
|
|
|
|
|
|
|
|
| |
6.74 |
|
| 39,797 |
| 0.02 |
| (e) |
– |
|
| 1.20 |
| 7.6 |
|
(17.81) |
|
| 24,880 |
| 0.02 |
| (e) |
– |
|
| 2.30 |
| 13.8 |
|
36.56 |
|
| 19,773 |
| 0.02 |
| (e) |
– |
|
| 1.70 |
| 12.9 |
|
5.29 |
|
| 9,905 |
| 0.02 |
| (e) |
– |
|
| 1.71 |
| 31.4 |
|
11.61 |
|
| 5,924 |
| 0.02 |
| (e) |
– |
|
| 0.93 |
| 15.9 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(d)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(e)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
|
| |
|
Net
Asset
Value,
Beginning
of
Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Tax
Return of Capital Distribution |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME HYBRID 2065 FUND |
|
|
|
|
|
| |
Class
J shares |
|
|
|
|
|
|
|
| |
2023 |
$12.20 |
| $0.12 |
| $0.62 |
| $0.74 |
| ($0.16) |
| ($0.66) |
| $– |
| ($0.82) |
| $12.12 |
|
2022 |
15.22 |
| 0.30 |
| (2.98) |
| (2.68) |
| (0.34) |
| – |
| – |
| (0.34) |
| 12.20 |
|
2021 |
11.36 |
| 0.17 |
| 3.95 |
| 4.12 |
| (0.25) |
| – |
| (0.01) |
| (0.26) |
| 15.22 |
|
2020 |
10.98 |
| 0.15 |
| 0.42 |
| 0.57 |
| (0.19) |
| – |
| – |
| (0.19) |
| 11.36 |
|
2019 |
10.20 |
| 0.15 |
| 0.96 |
| 1.11 |
| (0.27) |
| (0.06) |
| – |
| (0.33) |
| 10.98 |
|
Institutional
shares |
|
|
|
|
|
|
|
| |
2023 |
12.36 |
| 0.14 |
| 0.64 |
| 0.78 |
| (0.17) |
| (0.66) |
| – |
| (0.83) |
| 12.31 |
|
2022 |
15.38 |
| 0.29 |
| (2.96) |
| (2.67) |
| (0.35) |
| – |
| – |
| (0.35) |
| 12.36 |
|
2021 |
11.45 |
| 0.19 |
| 4.00 |
| 4.19 |
| (0.25) |
| – |
| (0.01) |
| (0.26) |
| 15.38 |
|
2020 |
11.03 |
| 0.18 |
| 0.43 |
| 0.61 |
| (0.19) |
| – |
| – |
| (0.19) |
| 11.45 |
|
2019 |
10.22 |
| 0.12 |
| 1.02 |
| 1.14 |
| (0.27) |
| (0.06) |
| – |
| (0.33) |
| 11.03 |
|
R-6
shares |
|
|
|
|
|
|
|
| |
2023 |
12.37 |
| 0.13 |
| 0.66 |
| 0.79 |
| (0.17) |
| (0.66) |
| – |
| (0.83) |
| 12.33 |
|
2022 |
15.39 |
| 0.28 |
| (2.95) |
| (2.67) |
| (0.35) |
| – |
| – |
| (0.35) |
| 12.37 |
|
2021 |
11.45 |
| 0.27 |
| 3.93 |
| 4.20 |
| (0.25) |
| – |
| (0.01) |
| (0.26) |
| 15.39 |
|
2020 |
11.03 |
| 0.17 |
| 0.44 |
| 0.61 |
| (0.19) |
| – |
| – |
| (0.19) |
| 11.45 |
|
2019 |
10.22 |
| 0.01 |
| 1.13 |
| 1.14 |
| (0.27) |
| (0.06) |
| – |
| (0.33) |
| 11.03 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average
Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
6.37 |
% |
(b) |
$8,800 |
| 0.30 |
% |
(c) |
0.87 |
% |
(d) |
0.96 |
% |
16.3 |
% |
(18.04) |
| (b) |
5,632 |
| 0.30 |
| (c) |
0.89 |
| (d) |
2.26 |
| 28.4 |
|
36.67 |
| (b) |
5,381 |
| 0.30 |
| (c) |
1.24 |
| (d) |
1.19 |
| 31.3 |
|
5.18 |
| (b) |
1,550 |
| 0.30 |
| (c) |
3.26 |
| (d) |
1.34 |
| 65.7 |
|
11.42 |
| (b) |
625 |
| 0.30 |
| (c) |
7.73 |
| (d) |
1.44 |
| 143.3 |
|
|
|
|
|
|
|
|
| |
6.67 |
|
| 1,946 |
| 0.05 |
| (e) |
– |
|
| 1.11 |
| 16.3 |
|
(17.81) |
|
| 1,463 |
| 0.05 |
| (e) |
– |
|
| 2.12 |
| 28.4 |
|
37.00 |
|
| 1,312 |
| 0.05 |
| (e) |
– |
|
| 1.29 |
| 31.3 |
|
5.52 |
|
| 360 |
| 0.05 |
| (e) |
– |
|
| 1.59 |
| 65.7 |
|
11.70 |
|
| 264 |
| 0.05 |
| (e) |
– |
|
| 1.19 |
| 143.3 |
|
|
|
|
|
|
|
|
| |
6.75 |
|
| 12,636 |
| 0.02 |
| (e) |
– |
|
| 1.04 |
| 16.3 |
|
(17.80) |
|
| 5,956 |
| 0.02 |
| (e) |
– |
|
| 2.07 |
| 28.4 |
|
37.09 |
|
| 3,340 |
| 0.02 |
| (e) |
– |
|
| 1.91 |
| 31.3 |
|
5.52 |
|
| 1,013 |
| 0.02 |
| (e) |
– |
|
| 1.56 |
| 65.7 |
|
11.83 |
| (f) |
434 |
| 0.02 |
| (e) |
– |
|
| 0.13 |
| 143.3 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(d)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(e)Reflects
Manager's
contractual
expense
limit.
(f)During
the
fiscal
year
ending
October
31,
2019,
the
Class
experienced
a
one-time
gain
of
net
$0.02/share
as
a
result
of
a
loss
related
to
a
large
redemption
and
a
subsequent
reimbursement
by
the
Advisor.
If
such
gain
had
not
been
recognized,
the
total
return
amounts
expressed
herein
would
have
been
lower.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME HYBRID 2070 FUND |
|
|
| |
Class
J
shares |
|
|
|
| |
2023(b) |
$10.00 |
| ($0.01) |
| $0.16 |
| $0.15 |
| $10.15 |
|
Institutional
shares |
|
|
|
| |
2023(b) |
10.00 |
| 0.01 |
| 0.05 |
| 0.06 |
| 10.06 |
|
R-6
shares |
|
|
|
| |
2023(b) |
10.00 |
| 0.01 |
| 0.06 |
| 0.07 |
| 10.07 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
1.50 |
% |
(c),(d) |
$355 |
| 0.30 |
% |
(e),(f) |
40.52 |
% |
(e) |
(0.14) |
% |
(e) |
130.0 |
% |
(e) |
|
|
|
|
|
|
|
|
|
| |
0.60 |
| (c) |
36 |
| 0.05 |
| (e),(g) |
– |
|
| 0.10 |
| (e) |
130.0 |
| (e) |
|
|
|
|
|
|
|
|
|
| |
0.70 |
| (c) |
282 |
| 0.02 |
| (e),(f) |
– |
|
| 0.16 |
| (e) |
130.0 |
| (e) |
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Period
from
March
1,
2023,
date
operations
commenced,
through
October
31,
2023.
(c)Total
return
amounts
have
not
been
annualized.
(d)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(e)Computed
on an annualized basis.
(f)Reflects
Manager's
contractual
expense
limit.
(g)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(h)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
| |
|
Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME HYBRID INCOME FUND |
|
|
|
|
| |
Class
J shares |
|
|
|
|
|
|
| |
2023 |
$9.49 |
| $0.20 |
| $0.10 |
| $0.30 |
| ($0.19) |
| ($0.27) |
| ($0.46) |
| $9.33 |
|
2022 |
11.69 |
| 0.23 |
| (1.83) |
| (1.60) |
| (0.25) |
| (0.35) |
| (0.60) |
| 9.49 |
|
2021 |
11.18 |
| 0.39 |
| 0.66 |
| 1.05 |
| (0.50) |
| (0.04) |
| (0.54) |
| 11.69 |
|
2020 |
10.84 |
| 0.19 |
| 0.45 |
| 0.64 |
| (0.26) |
| (0.04) |
| (0.30) |
| 11.18 |
|
2019 |
10.16 |
| 0.22 |
| 0.66 |
| 0.88 |
| (0.16) |
| (0.04) |
| (0.20) |
| 10.84 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
9.54 |
| 0.25 |
| 0.07 |
| 0.32 |
| (0.21) |
| (0.27) |
| (0.48) |
| 9.38 |
|
2022 |
11.74 |
| 0.29 |
| (1.86) |
| (1.57) |
| (0.28) |
| (0.35) |
| (0.63) |
| 9.54 |
|
2021 |
11.23 |
| 0.43 |
| 0.63 |
| 1.06 |
| (0.51) |
| (0.04) |
| (0.55) |
| 11.74 |
|
2020 |
10.88 |
| 0.27 |
| 0.40 |
| 0.67 |
| (0.28) |
| (0.04) |
| (0.32) |
| 11.23 |
|
2019 |
10.17 |
| 0.28 |
| 0.64 |
| 0.92 |
| (0.17) |
| (0.04) |
| (0.21) |
| 10.88 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
9.56 |
| 0.26 |
| 0.06 |
| 0.32 |
| (0.21) |
| (0.27) |
| (0.48) |
| 9.40 |
|
2022 |
11.76 |
| 0.27 |
| (1.84) |
| (1.57) |
| (0.28) |
| (0.35) |
| (0.63) |
| 9.56 |
|
2021 |
11.24 |
| 0.52 |
| 0.56 |
| 1.08 |
| (0.52) |
| (0.04) |
| (0.56) |
| 11.76 |
|
2020 |
10.89 |
| 0.26 |
| 0.41 |
| 0.67 |
| (0.28) |
| (0.04) |
| (0.32) |
| 11.24 |
|
2019 |
10.18 |
| 0.17 |
| 0.75 |
| 0.92 |
| (0.17) |
| (0.04) |
| (0.21) |
| 10.89 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
3.27 |
% |
(b) |
$69,130 |
| 0.17 |
% |
(c) |
0.19 |
% |
(d) |
2.10 |
% |
20.7 |
% |
(14.39) |
| (b) |
42,296 |
| 0.26 |
| (c) |
0.28 |
| (d) |
2.23 |
| 31.5 |
|
9.56 |
| (b) |
33,456 |
| 0.28 |
| (c) |
0.30 |
| (d) |
3.38 |
| 20.6 |
|
6.01 |
| (b) |
18,439 |
| 0.30 |
| (c) |
0.43 |
| (d) |
1.72 |
| 34.6 |
|
8.82 |
| (b) |
8,310 |
| 0.30 |
| (c) |
0.72 |
| (d) |
2.07 |
| 24.1 |
|
|
|
|
|
|
|
|
| |
3.42 |
|
| 10,053 |
| 0.05 |
| (e) |
– |
|
| 2.54 |
| 20.7 |
|
(14.17) |
|
| 11,474 |
| 0.05 |
| (e) |
– |
|
| 2.76 |
| 31.5 |
|
9.69 |
|
| 17,255 |
| 0.05 |
| (e) |
– |
|
| 3.74 |
| 20.6 |
|
6.27 |
|
| 12,454 |
| 0.05 |
| (e) |
– |
|
| 2.45 |
| 34.6 |
|
9.20 |
|
| 13,554 |
| 0.05 |
| (e) |
– |
|
| 2.67 |
| 24.1 |
|
|
|
|
|
|
|
|
| |
3.45 |
|
| 25,367 |
| 0.02 |
| (e) |
– |
|
| 2.65 |
| 20.7 |
|
(14.13) |
|
| 33,623 |
| 0.02 |
| (e) |
– |
|
| 2.61 |
| 31.5 |
|
9.78 |
|
| 34,760 |
| 0.02 |
| (e) |
– |
|
| 4.48 |
| 20.6 |
|
6.27 |
|
| 33,148 |
| 0.02 |
| (e) |
– |
|
| 2.42 |
| 34.6 |
|
9.19 |
|
| 34,983 |
| 0.02 |
| (e) |
– |
|
| 1.62 |
| 24.1 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(d)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(e)Reflects
Manager's
contractual
expense
limit.
(f)Period
from
March
1,
2019,
date
operations
commenced,
through
October
31,
2019.
(g)Total
return
amounts
have
not
been
annualized.
(h)Computed
on an annualized basis.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
| |
|
Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
PRINCIPAL
LIFETIME STRATEGIC INCOME FUND |
|
|
|
|
| |
Class
A shares |
|
|
|
|
|
|
| |
2023 |
$10.46 |
| $0.26 |
| $0.08 |
| $0.34 |
| ($0.24) |
| ($0.25) |
| ($0.49) |
| $10.31 |
|
2022 |
13.24 |
| 0.31 |
| (2.18) |
| (1.87) |
| (0.31) |
| (0.60) |
| (0.91) |
| 10.46 |
|
2021 |
12.51 |
| 0.22 |
| 0.95 |
| 1.17 |
| (0.22) |
| (0.22) |
| (0.44) |
| 13.24 |
|
2020 |
12.43 |
| 0.25 |
| 0.43 |
| 0.68 |
| (0.27) |
| (0.33) |
| (0.60) |
| 12.51 |
|
2019 |
12.19 |
| 0.32 |
| 0.72 |
| 1.04 |
| (0.30) |
| (0.50) |
| (0.80) |
| 12.43 |
|
Class
J shares |
|
|
|
|
|
|
| |
2023 |
10.29 |
| 0.26 |
| 0.10 |
| 0.36 |
| (0.26) |
| (0.25) |
| (0.51) |
| 10.14 |
|
2022 |
13.04 |
| 0.32 |
| (2.15) |
| (1.83) |
| (0.32) |
| (0.60) |
| (0.92) |
| 10.29 |
|
2021 |
12.33 |
| 0.23 |
| 0.94 |
| 1.17 |
| (0.24) |
| (0.22) |
| (0.46) |
| 13.04 |
|
2020 |
12.26 |
| 0.26 |
| 0.43 |
| 0.69 |
| (0.29) |
| (0.33) |
| (0.62) |
| 12.33 |
|
2019 |
12.03 |
| 0.33 |
| 0.72 |
| 1.05 |
| (0.32) |
| (0.50) |
| (0.82) |
| 12.26 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
10.37 |
| 0.30 |
| 0.08 |
| 0.38 |
| (0.29) |
| (0.25) |
| (0.54) |
| 10.21 |
|
2022 |
13.13 |
| 0.36 |
| (2.17) |
| (1.81) |
| (0.35) |
| (0.60) |
| (0.95) |
| 10.37 |
|
2021 |
12.41 |
| 0.26 |
| 0.94 |
| 1.20 |
| (0.26) |
| (0.22) |
| (0.48) |
| 13.13 |
|
2020 |
12.34 |
| 0.28 |
| 0.44 |
| 0.72 |
| (0.32) |
| (0.33) |
| (0.65) |
| 12.41 |
|
2019 |
12.11 |
| 0.36 |
| 0.72 |
| 1.08 |
| (0.35) |
| (0.50) |
| (0.85) |
| 12.34 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
10.37 |
| 0.20 |
| 0.09 |
| 0.29 |
| (0.19) |
| (0.25) |
| (0.44) |
| 10.22 |
|
2022 |
13.11 |
| 0.25 |
| (2.17) |
| (1.92) |
| (0.22) |
| (0.60) |
| (0.82) |
| 10.37 |
|
2021 |
12.40 |
| 0.16 |
| 0.92 |
| 1.08 |
| (0.15) |
| (0.22) |
| (0.37) |
| 13.11 |
|
2020 |
12.32 |
| 0.19 |
| 0.43 |
| 0.62 |
| (0.21) |
| (0.33) |
| (0.54) |
| 12.40 |
|
2019 |
12.08 |
| 0.25 |
| 0.73 |
| 0.98 |
| (0.24) |
| (0.50) |
| (0.74) |
| 12.32 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
10.25 |
| 0.23 |
| 0.09 |
| 0.32 |
| (0.22) |
| (0.25) |
| (0.47) |
| 10.10 |
|
2022 |
12.99 |
| 0.29 |
| (2.16) |
| (1.87) |
| (0.27) |
| (0.60) |
| (0.87) |
| 10.25 |
|
2021 |
12.27 |
| 0.19 |
| 0.94 |
| 1.13 |
| (0.19) |
| (0.22) |
| (0.41) |
| 12.99 |
|
2020 |
12.20 |
| 0.22 |
| 0.42 |
| 0.64 |
| (0.24) |
| (0.33) |
| (0.57) |
| 12.27 |
|
2019 |
11.97 |
| 0.30 |
| 0.71 |
| 1.01 |
| (0.28) |
| (0.50) |
| (0.78) |
| 12.20 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
10.29 |
| 0.25 |
| 0.08 |
| 0.33 |
| (0.24) |
| (0.25) |
| (0.49) |
| 10.13 |
|
2022 |
13.03 |
| 0.32 |
| (2.16) |
| (1.84) |
| (0.30) |
| (0.60) |
| (0.90) |
| 10.29 |
|
2021 |
12.32 |
| 0.21 |
| 0.94 |
| 1.15 |
| (0.22) |
| (0.22) |
| (0.44) |
| 13.03 |
|
2020 |
12.24 |
| 0.24 |
| 0.43 |
| 0.67 |
| (0.26) |
| (0.33) |
| (0.59) |
| 12.32 |
|
2019 |
12.00 |
| 0.31 |
| 0.73 |
| 1.04 |
| (0.30) |
| (0.50) |
| (0.80) |
| 12.24 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
10.36 |
| 0.27 |
| 0.08 |
| 0.35 |
| (0.26) |
| (0.25) |
| (0.51) |
| 10.20 |
|
2022 |
13.12 |
| 0.33 |
| (2.18) |
| (1.85) |
| (0.31) |
| (0.60) |
| (0.91) |
| 10.36 |
|
2021 |
12.39 |
| 0.24 |
| 0.94 |
| 1.18 |
| (0.23) |
| (0.22) |
| (0.45) |
| 13.12 |
|
2020 |
12.32 |
| 0.26 |
| 0.43 |
| 0.69 |
| (0.29) |
| (0.33) |
| (0.62) |
| 12.39 |
|
2019 |
12.09 |
| 0.33 |
| 0.72 |
| 1.05 |
| (0.32) |
| (0.50) |
| (0.82) |
| 12.32 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average
Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
3.28 |
% |
(b) |
$35,755 |
| 0.38 |
% |
(c) |
– |
% |
| 2.43 |
% |
11.8 |
% |
(15.14) |
| (b) |
16,425 |
| 0.38 |
| (c) |
– |
|
| 2.72 |
| 33.6 |
|
9.45 |
| (b) |
19,902 |
| 0.38 |
| (c) |
– |
|
| 1.66 |
| 35.0 |
|
5.70 |
| (b) |
16,214 |
| 0.38 |
| (c) |
– |
|
| 2.01 |
| 31.0 |
|
9.31 |
| (b) |
16,283 |
| 0.38 |
| (c) |
– |
|
| 2.63 |
| 44.8 |
|
|
|
|
|
|
|
|
| |
3.53 |
| (b) |
213,892 |
| 0.19 |
| (d) |
0.21 |
| (e) |
2.51 |
| 11.8 |
|
(15.02) |
| (b) |
58,048 |
| 0.23 |
| (d) |
0.25 |
| (e) |
2.87 |
| 33.6 |
|
9.61 |
| (b) |
71,811 |
| 0.22 |
| (d) |
0.24 |
| (e) |
1.84 |
| 35.0 |
|
5.87 |
| (b) |
65,404 |
| 0.22 |
| (d) |
0.25 |
| (e) |
2.18 |
| 31.0 |
|
9.52 |
| (b) |
67,084 |
| 0.24 |
| (d) |
0.27 |
| (e) |
2.75 |
| 44.8 |
|
|
|
|
|
|
|
|
| |
3.64 |
|
| 464,413 |
| 0.02 |
|
| – |
|
| 2.82 |
| 11.8 |
|
(14.82) |
|
| 237,065 |
| 0.02 |
|
| – |
|
| 3.12 |
| 33.6 |
|
9.83 |
|
| 337,718 |
| 0.02 |
|
| – |
|
| 2.04 |
| 35.0 |
|
6.06 |
|
| 313,363 |
| 0.02 |
|
| – |
|
| 2.35 |
| 31.0 |
|
9.71 |
|
| 288,470 |
| 0.03 |
|
| – |
|
| 3.00 |
| 44.8 |
|
|
|
|
|
|
|
|
| |
2.78 |
|
| 4,275 |
| 0.89 |
|
| – |
|
| 1.89 |
| 11.8 |
|
(15.58) |
|
| 1,686 |
| 0.89 |
|
| – |
|
| 2.21 |
| 33.6 |
|
8.82 |
|
| 2,173 |
| 0.89 |
|
| – |
|
| 1.22 |
| 35.0 |
|
5.22 |
|
| 2,298 |
| 0.89 |
|
| – |
|
| 1.55 |
| 31.0 |
|
8.74 |
|
| 2,935 |
| 0.89 |
|
| – |
|
| 2.12 |
| 44.8 |
|
|
|
|
|
|
|
|
| |
3.11 |
|
| 19,003 |
| 0.58 |
|
| – |
|
| 2.20 |
| 11.8 |
|
(15.36) |
|
| 7,731 |
| 0.58 |
|
| – |
|
| 2.56 |
| 33.6 |
|
9.31 |
|
| 10,552 |
| 0.58 |
|
| – |
|
| 1.51 |
| 35.0 |
|
5.45 |
|
| 11,439 |
| 0.58 |
|
| – |
|
| 1.86 |
| 31.0 |
|
9.13 |
|
| 13,611 |
| 0.58 |
|
| – |
|
| 2.59 |
| 44.8 |
|
|
|
|
|
|
|
|
| |
3.20 |
|
| 7,279 |
| 0.39 |
|
| – |
|
| 2.42 |
| 11.8 |
|
(15.12) |
|
| 3,546 |
| 0.39 |
|
| – |
|
| 2.81 |
| 33.6 |
|
9.41 |
|
| 5,143 |
| 0.39 |
|
| – |
|
| 1.67 |
| 35.0 |
|
5.69 |
|
| 5,101 |
| 0.39 |
|
| – |
|
| 2.03 |
| 31.0 |
|
9.40 |
|
| 5,513 |
| 0.39 |
|
| – |
|
| 2.60 |
| 44.8 |
|
|
|
|
|
|
|
|
| |
3.35 |
|
| 20,170 |
| 0.27 |
|
| – |
|
| 2.58 |
| 11.8 |
|
(15.07) |
|
| 10,147 |
| 0.27 |
|
| – |
|
| 2.90 |
| 33.6 |
|
9.64 |
|
| 13,279 |
| 0.27 |
|
| – |
|
| 1.84 |
| 35.0 |
|
5.79 |
|
| 16,430 |
| 0.27 |
|
| – |
|
| 2.14 |
| 31.0 |
|
9.42 |
|
| 19,181 |
| 0.27 |
|
| – |
|
| 2.75 |
| 44.8 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit.
(d)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(e)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Tax
Return of Capital Distribution |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
REAL
ESTATE SECURITIES FUND |
|
|
|
|
|
|
| |
Class
A shares |
|
|
|
|
|
|
|
| |
2023 |
$25.62 |
| $0.53 |
| ($1.88) |
| ($1.35) |
| ($0.54) |
| ($0.26) |
| ($0.08) |
| ($0.88) |
| $23.39 |
|
2022 |
33.58 |
| 0.32 |
| (6.82) |
| (6.50) |
| (0.35) |
| (1.11) |
| – |
| (1.46) |
| 25.62 |
|
2021 |
23.53 |
| 0.26 |
| 10.41 |
| 10.67 |
| (0.30) |
| (0.32) |
| – |
| (0.62) |
| 33.58 |
|
2020 |
28.63 |
| 0.33 |
| (4.75) |
| (4.42) |
| (0.52) |
| (0.16) |
| – |
| (0.68) |
| 23.53 |
|
2019 |
23.20 |
| 0.31 |
| 6.02 |
| 6.33 |
| (0.33) |
| (0.57) |
| – |
| (0.90) |
| 28.63 |
|
Class
C shares |
|
|
|
|
|
|
|
| |
2023 |
25.11 |
| 0.30 |
| (1.85) |
| (1.55) |
| (0.33) |
| (0.26) |
| (0.06) |
| (0.65) |
| 22.91 |
|
2022 |
32.93 |
| 0.08 |
| (6.68) |
| (6.60) |
| (0.11) |
| (1.11) |
| – |
| (1.22) |
| 25.11 |
|
2021 |
23.08 |
| 0.05 |
| 10.20 |
| 10.25 |
| (0.08) |
| (0.32) |
| – |
| (0.40) |
| 32.93 |
|
2020 |
28.08 |
| 0.14 |
| (4.67) |
| (4.53) |
| (0.31) |
| (0.16) |
| – |
| (0.47) |
| 23.08 |
|
2019 |
22.77 |
| 0.11 |
| 5.91 |
| 6.02 |
| (0.14) |
| (0.57) |
| – |
| (0.71) |
| 28.08 |
|
Class
J shares |
|
|
|
|
|
|
|
| |
2023 |
24.75 |
| 0.54 |
| (1.83) |
| (1.29) |
| (0.56) |
| (0.26) |
| (0.09) |
| (0.91) |
| 22.55 |
|
2022 |
32.49 |
| 0.35 |
| (6.59) |
| (6.24) |
| (0.39) |
| (1.11) |
| – |
| (1.50) |
| 24.75 |
|
2021 |
22.79 |
| 0.28 |
| 10.08 |
| 10.36 |
| (0.34) |
| (0.32) |
| – |
| (0.66) |
| 32.49 |
|
2020 |
27.76 |
| 0.36 |
| (4.62) |
| (4.26) |
| (0.55) |
| (0.16) |
| – |
| (0.71) |
| 22.79 |
|
2019 |
22.52 |
| 0.33 |
| 5.84 |
| 6.17 |
| (0.36) |
| (0.57) |
| – |
| (0.93) |
| 27.76 |
|
Institutional
shares |
|
|
|
|
|
|
|
| |
2023 |
25.65 |
| 0.63 |
| (1.90) |
| (1.27) |
| (0.62) |
| (0.26) |
| (0.10) |
| (0.98) |
| 23.40 |
|
2022 |
33.61 |
| 0.42 |
| (6.82) |
| (6.40) |
| (0.45) |
| (1.11) |
| – |
| (1.56) |
| 25.65 |
|
2021 |
23.55 |
| 0.32 |
| 10.46 |
| 10.78 |
| (0.40) |
| (0.32) |
| – |
| (0.72) |
| 33.61 |
|
2020 |
28.66 |
| 0.42 |
| (4.77) |
| (4.35) |
| (0.60) |
| (0.16) |
| – |
| (0.76) |
| 23.55 |
|
2019 |
23.22 |
| 0.39 |
| 6.04 |
| 6.43 |
| (0.42) |
| (0.57) |
| – |
| (0.99) |
| 28.66 |
|
R-1
shares |
|
|
|
|
|
|
|
| |
2023 |
25.29 |
| 0.41 |
| (1.86) |
| (1.45) |
| (0.44) |
| (0.26) |
| (0.07) |
| (0.77) |
| 23.07 |
|
2022 |
33.15 |
| 0.17 |
| (6.72) |
| (6.55) |
| (0.20) |
| (1.11) |
| – |
| (1.31) |
| 25.29 |
|
2021 |
23.24 |
| 0.11 |
| 10.29 |
| 10.40 |
| (0.17) |
| (0.32) |
| – |
| (0.49) |
| 33.15 |
|
2020 |
28.26 |
| 0.23 |
| (4.70) |
| (4.47) |
| (0.39) |
| (0.16) |
| – |
| (0.55) |
| 23.24 |
|
2019 |
22.91 |
| 0.20 |
| 5.95 |
| 6.15 |
| (0.23) |
| (0.57) |
| – |
| (0.80) |
| 28.26 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net
Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
(5.50) |
% |
(b) |
$182,522 |
| 1.22 |
% |
| – |
% |
| 2.06 |
% |
16.1 |
% |
(20.14) |
| (b) |
283,213 |
| 1.20 |
|
| – |
|
| 1.05 |
| 18.7 |
|
45.87 |
| (b) |
348,715 |
| 1.21 |
|
| – |
|
| 0.88 |
| 31.0 |
|
(15.56) |
| (b) |
286,896 |
| 1.24 |
|
| – |
|
| 1.33 |
| 35.1 |
|
28.09 |
| (b) |
370,891 |
| 1.26 |
|
| – |
|
| 1.20 |
| 20.1 |
|
|
|
|
|
|
|
|
| |
(6.34) |
| (b) |
18,401 |
| 2.10 |
|
| – |
|
| 1.19 |
| 16.1 |
|
(20.76) |
| (b) |
27,677 |
| 1.99 |
|
| – |
|
| 0.25 |
| 18.7 |
|
44.73 |
| (b),(c) |
40,295 |
| 1.99 |
|
| – |
|
| 0.16 |
| 31.0 |
|
(16.21) |
| (b),(c) |
34,198 |
| 2.02 |
|
| – |
|
| 0.55 |
| 35.1 |
|
27.10 |
| (b) |
53,250 |
| 2.05 |
|
| – |
|
| 0.44 |
| 20.1 |
|
|
|
|
|
|
|
|
| |
(5.44) |
| (b) |
119,508 |
| 1.13 |
| (d) |
1.15 |
| (e) |
2.15 |
| 16.1 |
|
(20.04) |
| (b),(c) |
139,555 |
| 1.07 |
| (d) |
1.09 |
| (e) |
1.18 |
| 18.7 |
|
46.09 |
| (b),(c) |
185,393 |
| 1.08 |
| (d) |
1.10 |
| (e) |
1.00 |
| 31.0 |
|
(15.45) |
| (b) |
134,897 |
| 1.10 |
| (d) |
1.13 |
| (e) |
1.46 |
| 35.1 |
|
28.24 |
| (b) |
181,025 |
| 1.14 |
| (d) |
1.17 |
| (e) |
1.33 |
| 20.1 |
|
|
|
|
|
|
|
|
| |
(5.19) |
|
| 2,867,558 |
| 0.86 |
| (f) |
– |
|
| 2.42 |
| 16.1 |
|
(19.85) |
|
| 3,291,840 |
| 0.86 |
| (f) |
– |
|
| 1.39 |
| 18.7 |
|
46.34 |
|
| 3,930,727 |
| 0.89 |
| (f) |
– |
|
| 1.06 |
| 31.0 |
|
(15.27) |
|
| 2,160,526 |
| 0.91 |
| (f) |
– |
|
| 1.66 |
| 35.1 |
|
28.54 |
|
| 2,411,326 |
| 0.91 |
| (f) |
– |
|
| 1.53 |
| 20.1 |
|
|
|
|
|
|
|
|
| |
(5.94) |
|
| 1,939 |
| 1.68 |
|
| – |
|
| 1.61 |
| 16.1 |
|
(20.49) |
|
| 2,230 |
| 1.68 |
|
| – |
|
| 0.57 |
| 18.7 |
|
45.20 |
|
| 2,955 |
| 1.68 |
|
| – |
|
| 0.37 |
| 31.0 |
|
(15.94) |
|
| 2,141 |
| 1.68 |
|
| – |
|
| 0.90 |
| 35.1 |
|
27.54 |
|
| 4,368 |
| 1.69 |
|
| – |
|
| 0.79 |
| 20.1 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which a shareholder would have paid or received from a subscription or
redemption.
(d)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(e)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(f)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Tax
Return of Capital Distribution |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
REAL
ESTATE
SECURITIES
FUND |
|
|
|
|
|
|
| |
R-3
shares |
|
|
|
|
|
|
|
| |
2023 |
$24.89 |
| $0.48 |
| ($1.83) |
| ($1.35) |
| ($0.51) |
| ($0.26) |
| ($0.08) |
| ($0.85) |
| $22.69 |
|
2022 |
32.66 |
| 0.26 |
| (6.62) |
| (6.36) |
| (0.30) |
| (1.11) |
| – |
| (1.41) |
| 24.89 |
|
2021 |
22.91 |
| 0.17 |
| 10.17 |
| 10.34 |
| (0.27) |
| (0.32) |
| – |
| (0.59) |
| 32.66 |
|
2020 |
27.89 |
| 0.29 |
| (4.63) |
| (4.34) |
| (0.48) |
| (0.16) |
| – |
| (0.64) |
| 22.91 |
|
2019 |
22.62 |
| 0.28 |
| 5.87 |
| 6.15 |
| (0.31) |
| (0.57) |
| – |
| (0.88) |
| 27.89 |
|
R-4
shares |
|
|
|
|
|
|
|
| |
2023 |
24.57 |
| 0.51 |
| (1.80) |
| (1.29) |
| (0.54) |
| (0.26) |
| (0.09) |
| (0.89) |
| 22.39 |
|
2022 |
32.26 |
| 0.32 |
| (6.54) |
| (6.22) |
| (0.36) |
| (1.11) |
| – |
| (1.47) |
| 24.57 |
|
2021 |
22.63 |
| 0.27 |
| 10.00 |
| 10.27 |
| (0.32) |
| (0.32) |
| – |
| (0.64) |
| 32.26 |
|
2020 |
27.57 |
| 0.34 |
| (4.59) |
| (4.25) |
| (0.53) |
| (0.16) |
| – |
| (0.69) |
| 22.63 |
|
2019 |
22.37 |
| 0.32 |
| 5.80 |
| 6.12 |
| (0.35) |
| (0.57) |
| – |
| (0.92) |
| 27.57 |
|
R-5
shares |
|
|
|
|
|
|
|
| |
2023 |
24.63 |
| 0.55 |
| (1.81) |
| (1.26) |
| (0.58) |
| (0.26) |
| (0.09) |
| (0.93) |
| 22.44 |
|
2022 |
32.34 |
| 0.35 |
| (6.56) |
| (6.21) |
| (0.39) |
| (1.11) |
| – |
| (1.50) |
| 24.63 |
|
2021 |
22.68 |
| 0.29 |
| 10.04 |
| 10.33 |
| (0.35) |
| (0.32) |
| – |
| (0.67) |
| 32.34 |
|
2020 |
27.63 |
| 0.37 |
| (4.59) |
| (4.22) |
| (0.57) |
| (0.16) |
| – |
| (0.73) |
| 22.68 |
|
2019 |
22.42 |
| 0.36 |
| 5.80 |
| 6.16 |
| (0.38) |
| (0.57) |
| – |
| (0.95) |
| 27.63 |
|
R-6
shares |
|
|
|
|
|
|
|
| |
2023 |
25.64 |
| 0.64 |
| (1.89) |
| (1.25) |
| (0.64) |
| (0.26) |
| (0.10) |
| (1.00) |
| 23.39 |
|
2022 |
33.60 |
| 0.45 |
| (6.83) |
| (6.38) |
| (0.47) |
| (1.11) |
| – |
| (1.58) |
| 25.64 |
|
2021 |
23.55 |
| 0.40 |
10.39 |
| 10.79 |
| (0.42) |
| (0.32) |
| – |
| (0.74) |
| 33.60 |
2020 |
28.66 |
| 0.44 |
| (4.76) |
| (4.32) |
| (0.63) |
| (0.16) |
| – |
| (0.79) |
| 23.55 |
|
2019 |
23.22 |
| 0.42 |
| 6.04 |
| 6.46 |
| (0.45) |
| (0.57) |
| – |
| (1.02) |
| 28.66 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| |
Total
Return |
Net
Assets,
End of Period (in thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of Net Investment Income
to
Average
Net
Assets |
Portfolio
Turnover
Rate |
|
|
|
|
| |
|
|
|
|
| |
(5.65) |
% |
$26,311 |
| 1.37 |
% |
| 1.92 |
% |
16.1 |
% |
(20.26) |
| 33,778 |
| 1.37 |
|
| 0.88 |
| 18.7 |
|
45.63 |
| 46,314 |
| 1.37 |
|
| 0.59 |
| 31.0 |
|
(15.66) |
| 28,733 |
| 1.37 |
|
| 1.19 |
| 35.1 |
|
27.96 |
| 43,588 |
| 1.38 |
|
| 1.11 |
| 20.1 |
|
|
|
|
|
| |
(5.49) |
| 11,008 |
| 1.18 |
|
| 2.04 |
| 16.1 |
|
(20.10) |
| 22,634 |
| 1.18 |
|
| 1.08 |
| 18.7 |
|
45.92 |
| 31,739 |
| 1.18 |
|
| 0.95 |
| 31.0 |
|
(15.51) |
| 24,909 |
| 1.18 |
|
| 1.39 |
| 35.1 |
|
28.20 |
| 37,265 |
| 1.19 |
|
| 1.32 |
| 20.1 |
|
|
|
|
|
| |
(5.35) |
| 75,824 |
| 1.06 |
|
| 2.22 |
| 16.1 |
|
(20.01) |
| 87,270 |
| 1.06 |
|
| 1.19 |
| 18.7 |
|
46.10 |
| 114,006 |
| 1.06 |
|
| 1.04 |
| 31.0 |
|
(15.40) |
| 105,340 |
| 1.06 |
|
| 1.51 |
| 35.1 |
|
28.34 |
| 149,005 |
| 1.07 |
|
| 1.48 |
| 20.1 |
|
|
|
|
|
| |
(5.14) |
| 1,849,047 |
| 0.81 |
|
| 2.47 |
| 16.1 |
|
(19.79) |
| 1,854,169 |
| 0.80 |
|
| 1.46 |
| 18.7 |
|
46.43 |
| 2,045,827 |
| 0.80 |
| (b) |
1.38 |
| 31.0 |
|
(15.18) |
| 1,643,165 |
| 0.81 |
| (b) |
1.75 |
| 35.1 |
|
28.67 |
| 1,914,954 |
| 0.81 |
| (b) |
1.65 |
| 20.1 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
SAM
BALANCED
PORTFOLIO |
|
|
|
|
|
|
| |
Class
A
shares |
|
|
|
|
|
|
| |
2023 |
$14.16 |
| $0.24 |
| $0.51 |
| $0.75 |
| ($0.23) |
| ($0.87) |
| ($1.10) |
| $13.81 |
|
2022 |
18.95 |
| 0.32 |
| (3.38) |
| (3.06) |
| (0.30) |
| (1.43) |
| (1.73) |
| 14.16 |
|
2021 |
15.64 |
| 0.20 |
| 3.58 |
| 3.78 |
| (0.19) |
| (0.28) |
| (0.47) |
| 18.95 |
|
2020 |
15.73 |
| 0.25 |
| 0.25 |
| 0.50 |
| (0.23) |
| (0.36) |
| (0.59) |
| 15.64 |
|
2019 |
15.50 |
| 0.30 |
| 1.30 |
| 1.60 |
| (0.32) |
| (1.05) |
| (1.37) |
| 15.73 |
|
Class
C
shares |
|
|
|
|
|
|
| |
2023 |
13.81 |
| 0.13 |
| 0.48 |
| 0.61 |
| (0.11) |
| (0.87) |
| (0.98) |
| 13.44 |
|
2022 |
18.53 |
| 0.20 |
| (3.30) |
| (3.10) |
| (0.19) |
| (1.43) |
| (1.62) |
| 13.81 |
|
2021 |
15.36 |
| 0.06 |
| 3.51 |
| 3.57 |
| (0.12) |
| (0.28) |
| (0.40) |
| 18.53 |
|
2020 |
15.46 |
| 0.14 |
| 0.24 |
| 0.38 |
| (0.12) |
| (0.36) |
| (0.48) |
| 15.36 |
|
2019 |
15.25 |
| 0.24 |
| 1.22 |
| 1.46 |
| (0.20) |
| (1.05) |
| (1.25) |
| 15.46 |
|
Class
J
shares |
|
|
|
|
|
|
| |
2023 |
13.54 |
| 0.25 |
| 0.48 |
| 0.73 |
| (0.25) |
| (0.87) |
| (1.12) |
| 13.15 |
|
2022 |
18.20 |
| 0.32 |
| (3.22) |
| (2.90) |
| (0.33) |
| (1.43) |
| (1.76) |
| 13.54 |
|
2021 |
15.05 |
| 0.22 |
| 3.43 |
| 3.65 |
| (0.22) |
| (0.28) |
| (0.50) |
| 18.20 |
|
2020 |
15.15 |
| 0.27 |
| 0.25 |
| 0.52 |
| (0.26) |
| (0.36) |
| (0.62) |
| 15.05 |
|
2019 |
14.98 |
| 0.32 |
| 1.25 |
| 1.57 |
| (0.35) |
| (1.05) |
| (1.40) |
| 15.15 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
13.86 |
| 0.27 |
| 0.50 |
| 0.77 |
| (0.27) |
| (0.87) |
| (1.14) |
| 13.49 |
|
2022 |
18.60 |
| 0.37 |
| (3.32) |
| (2.95) |
| (0.36) |
| (1.43) |
| (1.79) |
| 13.86 |
|
2021 |
15.36 |
| 0.25 |
| 3.52 |
| 3.77 |
| (0.25) |
| (0.28) |
| (0.53) |
| 18.60 |
|
2020 |
15.45 |
| 0.29 |
| 0.26 |
| 0.55 |
| (0.28) |
| (0.36) |
| (0.64) |
| 15.36 |
|
2019 |
15.25 |
| 0.35 |
| 1.27 |
| 1.62 |
| (0.37) |
| (1.05) |
| (1.42) |
| 15.45 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
5.44 |
% |
(b) |
$1,897,327 |
| 0.62 |
% |
| – |
% |
| 1.66 |
% |
26.1 |
% |
(17.52) |
| (b) |
1,965,970 |
| 0.60 |
|
| – |
|
| 1.98 |
| 50.4 |
|
24.55 |
| (b) |
2,523,065 |
| 0.59 |
|
| – |
|
| 1.11 |
| 31.3 |
|
3.26 |
| (b) |
2,060,672 |
| 0.61 |
|
| – |
|
| 1.64 |
| 17.3 |
|
11.57 |
| (b) |
2,194,735 |
| 0.62 |
| (c) |
– |
|
| 1.99 |
| 13.4 |
|
|
|
|
|
|
|
|
| |
4.59 |
| (b) |
130,921 |
| 1.40 |
|
| – |
|
| 0.93 |
| 26.1 |
|
(18.16) |
| (b) |
174,776 |
| 1.38 |
|
| – |
|
| 1.26 |
| 50.4 |
|
23.57 |
| (b) |
281,665 |
| 1.37 |
|
| – |
|
| 0.37 |
| 31.3 |
|
2.48 |
| (b) |
322,006 |
| 1.38 |
|
| – |
|
| 0.90 |
| 17.3 |
|
10.77 |
| (b) |
384,622 |
| 1.38 |
| (c) |
– |
|
| 1.62 |
| 13.4 |
|
|
|
|
|
|
|
|
| |
5.59 |
| (b) |
1,263,792 |
| 0.44 |
| (d) |
0.46 |
| (e) |
1.82 |
| 26.1 |
|
(17.39) |
| (b) |
1,158,071 |
| 0.45 |
| (d) |
0.47 |
| (e) |
2.11 |
| 50.4 |
|
24.65 |
| (b) |
1,336,353 |
| 0.44 |
| (d) |
0.47 |
| (e) |
1.25 |
| 31.3 |
|
3.51 |
| (b) |
1,071,910 |
| 0.44 |
| (d) |
0.47 |
| (e) |
1.80 |
| 17.3 |
|
11.78 |
| (b) |
1,092,386 |
| 0.44 |
| (d) |
0.47 |
| (e) |
2.21 |
| 13.4 |
|
|
|
|
|
|
|
|
| |
5.75 |
|
| 642,053 |
| 0.30 |
|
| – |
|
| 1.96 |
| 26.1 |
|
(17.32) |
|
| 649,784 |
| 0.29 |
|
| – |
|
| 2.34 |
| 50.4 |
|
24.93 |
|
| 896,603 |
| 0.28 |
|
| – |
|
| 1.42 |
| 31.3 |
|
3.66 |
|
| 747,015 |
| 0.30 |
|
| – |
|
| 1.95 |
| 17.3 |
|
11.93 |
|
| 778,336 |
| 0.29 |
| (c) |
– |
|
| 2.36 |
| 13.4 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit.
(d)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(e)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
SAM
BALANCED PORTFOLIO |
|
|
|
|
|
|
| |
R-1
shares |
|
|
|
|
|
|
| |
2023 |
$13.81 |
| $0.16 |
| $0.49 |
| $0.65 |
| ($0.15) |
| ($0.87) |
| ($1.02) |
| $13.44 |
|
2022 |
18.53 |
| 0.22 |
| (3.29) |
| (3.07) |
| (0.22) |
| (1.43) |
| (1.65) |
| 13.81 |
|
2021 |
15.35 |
| 0.10 |
| 3.50 |
| 3.60 |
| (0.14) |
| (0.28) |
| (0.42) |
| 18.53 |
|
2020 |
15.41 |
| 0.17 |
| 0.28 |
| 0.45 |
| (0.15) |
| (0.36) |
| (0.51) |
| 15.35 |
|
2019 |
15.21 |
| 0.23 |
| 1.26 |
| 1.49 |
| (0.24) |
| (1.05) |
| (1.29) |
| 15.41 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
13.80 |
| 0.19 |
| 0.49 |
| 0.68 |
| (0.19) |
| (0.87) |
| (1.06) |
| 13.42 |
|
2022 |
18.51 |
| 0.29 |
| (3.30) |
| (3.01) |
| (0.27) |
| (1.43) |
| (1.70) |
| 13.80 |
|
2021 |
15.31 |
| 0.15 |
| 3.50 |
| 3.65 |
| (0.17) |
| (0.28) |
| (0.45) |
| 18.51 |
|
2020 |
15.40 |
| 0.21 |
| 0.26 |
| 0.47 |
| (0.20) |
| (0.36) |
| (0.56) |
| 15.31 |
|
2019 |
15.20 |
| 0.28 |
| 1.25 |
| 1.53 |
| (0.28) |
| (1.05) |
| (1.33) |
| 15.40 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
13.85 |
| 0.22 |
| 0.50 |
| 0.72 |
| (0.22) |
| (0.87) |
| (1.09) |
| 13.48 |
|
2022 |
18.57 |
| 0.27 |
| (3.27) |
| (3.00) |
| (0.29) |
| (1.43) |
| (1.72) |
| 13.85 |
|
2021 |
15.34 |
| 0.19 |
| 3.51 |
| 3.70 |
| (0.19) |
| (0.28) |
| (0.47) |
| 18.57 |
|
2020 |
15.44 |
| 0.23 |
| 0.26 |
| 0.49 |
| (0.23) |
| (0.36) |
| (0.59) |
| 15.34 |
|
2019 |
15.23 |
| 0.33 |
| 1.24 |
| 1.57 |
| (0.31) |
| (1.05) |
| (1.36) |
| 15.44 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
13.84 |
| 0.24 |
| 0.50 |
| 0.74 |
| (0.24) |
| (0.87) |
| (1.11) |
| 13.47 |
|
2022 |
18.56 |
| 0.32 |
| (3.29) |
| (2.97) |
| (0.32) |
| (1.43) |
| (1.75) |
| 13.84 |
|
2021 |
15.33 |
| 0.20 |
| 3.52 |
| 3.72 |
| (0.21) |
| (0.28) |
| (0.49) |
| 18.56 |
|
2020 |
15.43 |
| 0.25 |
| 0.25 |
| 0.50 |
| (0.24) |
| (0.36) |
| (0.60) |
| 15.33 |
|
2019 |
15.23 |
| 0.32 |
| 1.26 |
| 1.58 |
| (0.33) |
| (1.05) |
| (1.38) |
| 15.43 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| |
Total
Return |
Net
Assets,
End of Period (in thousands) |
Ratio
of
Expenses
to
Average
Net Assets |
Ratio
of Net Investment Income
to
Average
Net
Assets |
Portfolio
Turnover
Rate |
|
|
|
|
| |
|
|
|
|
| |
4.84 |
% |
$1,890 |
| 1.16 |
% |
| 1.17 |
% |
26.1 |
% |
(17.99) |
| 2,220 |
| 1.16 |
|
| 1.41 |
| 50.4 |
|
23.78 |
| 2,607 |
| 1.15 |
|
| 0.58 |
| 31.3 |
|
2.93 |
| 2,364 |
| 1.16 |
|
| 1.16 |
| 17.3 |
|
10.99 |
| 2,901 |
| 1.16 |
| (b) |
1.53 |
| 13.4 |
|
|
|
|
|
| |
5.12 |
| 19,264 |
| 0.85 |
|
| 1.40 |
| 26.1 |
|
(17.71) |
| 18,236 |
| 0.85 |
|
| 1.83 |
| 50.4 |
|
24.17 |
| 27,419 |
| 0.84 |
|
| 0.84 |
| 31.3 |
|
3.08 |
| 22,790 |
| 0.85 |
|
| 1.42 |
| 17.3 |
|
11.35 |
| 24,192 |
| 0.85 |
| (b) |
1.90 |
| 13.4 |
|
|
|
|
|
| |
5.37 |
| 9,177 |
| 0.66 |
|
| 1.60 |
| 26.1 |
|
(17.56) |
| 9,913 |
| 0.66 |
|
| 1.72 |
| 50.4 |
|
24.45 |
| 11,619 |
| 0.65 |
|
| 1.09 |
| 31.3 |
|
3.20 |
| 12,631 |
| 0.66 |
|
| 1.56 |
| 17.3 |
|
11.58 |
| 13,455 |
| 0.66 |
| (b) |
2.20 |
| 13.4 |
|
|
|
|
|
| |
5.51 |
| 29,840 |
| 0.54 |
|
| 1.74 |
| 26.1 |
|
(17.45) |
| 29,709 |
| 0.54 |
|
| 2.05 |
| 50.4 |
|
24.60 |
| 37,892 |
| 0.53 |
|
| 1.15 |
| 31.3 |
|
3.33 |
| 30,863 |
| 0.54 |
|
| 1.69 |
| 17.3 |
|
11.68 |
| 34,650 |
| 0.54 |
| (b) |
2.15 |
| 13.4 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
SAM
CONSERVATIVE BALANCED PORTFOLIO |
Class
A shares |
|
|
|
|
|
|
| |
2023 |
$10.85 |
| $0.23 |
| $0.14 |
| $0.37 |
| ($0.22) |
| ($0.27) |
| ($0.49) |
| $10.73 |
|
2022 |
13.95 |
| 0.26 |
| (2.41) |
| (2.15) |
| (0.25) |
| (0.70) |
| (0.95) |
| 10.85 |
|
2021 |
12.17 |
| 0.19 |
| 1.92 |
| 2.11 |
| (0.19) |
| (0.14) |
| (0.33) |
| 13.95 |
|
2020 |
12.16 |
| 0.22 |
| 0.17 |
| 0.39 |
| (0.22) |
| (0.16) |
| (0.38) |
| 12.17 |
|
2019 |
11.86 |
| 0.27 |
| 0.86 |
| 1.13 |
| (0.29) |
| (0.54) |
| (0.83) |
| 12.16 |
|
Class
C shares |
|
|
|
|
|
|
| |
2023 |
10.71 |
| 0.15 |
| 0.13 |
| 0.28 |
| (0.13) |
| (0.27) |
| (0.40) |
| 10.59 |
|
2022 |
13.78 |
| 0.16 |
| (2.38) |
| (2.22) |
| (0.15) |
| (0.70) |
| (0.85) |
| 10.71 |
|
2021 |
12.03 |
| 0.09 |
| 1.90 |
| 1.99 |
| (0.10) |
| (0.14) |
| (0.24) |
| 13.78 |
|
2020 |
12.02 |
| 0.14 |
| 0.16 |
| 0.30 |
| (0.13) |
| (0.16) |
| (0.29) |
| 12.03 |
|
2019 |
11.73 |
| 0.21 |
| 0.82 |
| 1.03 |
| (0.20) |
| (0.54) |
| (0.74) |
| 12.02 |
|
Class
J shares |
|
|
|
|
|
|
| |
2023 |
10.67 |
| 0.24 |
| 0.14 |
| 0.38 |
| (0.24) |
| (0.27) |
| (0.51) |
| 10.54 |
|
2022 |
13.74 |
| 0.27 |
| (2.37) |
| (2.10) |
| (0.27) |
| (0.70) |
| (0.97) |
| 10.67 |
|
2021 |
11.99 |
| 0.21 |
| 1.89 |
| 2.10 |
| (0.21) |
| (0.14) |
| (0.35) |
| 13.74 |
|
2020 |
11.99 |
| 0.24 |
| 0.16 |
| 0.40 |
| (0.24) |
| (0.16) |
| (0.40) |
| 11.99 |
|
2019 |
11.71 |
| 0.30 |
| 0.83 |
| 1.13 |
| (0.31) |
| (0.54) |
| (0.85) |
| 11.99 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
10.71 |
| 0.26 |
| 0.15 |
| 0.41 |
| (0.26) |
| (0.27) |
| (0.53) |
| 10.59 |
|
2022 |
13.79 |
| 0.29 |
| (2.38) |
| (2.09) |
| (0.29) |
| (0.70) |
| (0.99) |
| 10.71 |
|
2021 |
12.03 |
| 0.23 |
| 1.90 |
| 2.13 |
| (0.23) |
| (0.14) |
| (0.37) |
| 13.79 |
|
2020 |
12.04 |
| 0.26 |
| 0.15 |
| 0.41 |
| (0.26) |
| (0.16) |
| (0.42) |
| 12.03 |
|
2019 |
11.74 |
| 0.32 |
| 0.85 |
| 1.17 |
| (0.33) |
| (0.54) |
| (0.87) |
| 12.04 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net
Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
3.42 |
% |
(b) |
$492,836 |
| 0.62 |
% |
| – |
% |
| 2.06 |
% |
25.5 |
% |
(16.39) |
| (b) |
521,254 |
| 0.61 |
|
| – |
|
| 2.11 |
| 55.3 |
|
17.49 |
| (b) |
650,919 |
| 0.60 |
|
| – |
|
| 1.41 |
| 29.9 |
|
3.28 |
| (b) |
545,903 |
| 0.61 |
|
| – |
|
| 1.87 |
| 19.4 |
|
10.22 |
| (b) |
553,362 |
| 0.63 |
| (c) |
– |
|
| 2.34 |
| 15.0 |
|
|
|
|
|
|
|
|
| |
2.58 |
| (b) |
47,961 |
| 1.42 |
|
| – |
|
| 1.33 |
| 25.5 |
|
(17.06) |
| (b) |
70,882 |
| 1.38 |
|
| – |
|
| 1.37 |
| 55.3 |
|
16.66 |
| (b) |
114,412 |
| 1.37 |
|
| – |
|
| 0.66 |
| 29.9 |
|
2.50 |
| (b) |
137,283 |
| 1.37 |
|
| – |
|
| 1.14 |
| 19.4 |
|
9.37 |
| (b) |
160,672 |
| 1.38 |
| (c) |
– |
|
| 1.82 |
| 15.0 |
|
|
|
|
|
|
|
|
| |
3.57 |
| (b) |
852,351 |
| 0.44 |
| (d) |
0.46 |
| (e) |
2.22 |
| 25.5 |
|
(16.28) |
| (b) |
776,202 |
| 0.45 |
| (d) |
0.47 |
| (e) |
2.25 |
| 55.3 |
|
17.69 |
| (b) |
869,500 |
| 0.44 |
| (d) |
0.47 |
| (e) |
1.56 |
| 29.9 |
|
3.43 |
| (b) |
691,410 |
| 0.44 |
| (d) |
0.47 |
| (e) |
2.03 |
| 19.4 |
|
10.39 |
| (b) |
672,096 |
| 0.44 |
| (d) |
0.47 |
| (e) |
2.55 |
| 15.0 |
|
|
|
|
|
|
|
|
| |
3.79 |
|
| 186,288 |
| 0.31 |
|
| – |
|
| 2.37 |
| 25.5 |
|
(16.17) |
|
| 206,697 |
| 0.30 |
|
| – |
|
| 2.43 |
| 55.3 |
|
17.89 |
|
| 268,505 |
| 0.29 |
|
| – |
|
| 1.71 |
| 29.9 |
|
3.48 |
|
| 239,975 |
| 0.30 |
|
| – |
|
| 2.20 |
| 19.4 |
|
10.70 |
|
| 267,892 |
| 0.30 |
| (c) |
– |
|
| 2.77 |
| 15.0 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit.
(d)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(e)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
SAM
CONSERVATIVE BALANCED PORTFOLIO |
|
|
|
|
| |
R-1
shares |
|
|
|
|
|
|
| |
2023 |
$10.67 |
| $0.17 |
| $0.14 |
| $0.31 |
| ($0.16) |
| ($0.27) |
| ($0.43) |
| $10.55 |
|
2022 |
13.74 |
| 0.19 |
| (2.38) |
| (2.19) |
| (0.18) |
| (0.70) |
| (0.88) |
| 10.67 |
|
2021 |
11.98 |
| 0.13 |
| 1.88 |
| 2.01 |
| (0.11) |
| (0.14) |
| (0.25) |
| 13.74 |
|
2020 |
11.98 |
| 0.15 |
| 0.16 |
| 0.31 |
| (0.15) |
| (0.16) |
| (0.31) |
| 11.98 |
|
2019 |
11.70 |
| 0.21 |
| 0.84 |
| 1.05 |
| (0.23) |
| (0.54) |
| (0.77) |
| 11.98 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
10.69 |
| 0.19 |
| 0.16 |
| 0.35 |
| (0.20) |
| (0.27) |
| (0.47) |
| 10.57 |
|
2022 |
13.76 |
| 0.23 |
| (2.38) |
| (2.15) |
| (0.22) |
| (0.70) |
| (0.92) |
| 10.69 |
|
2021 |
12.01 |
| 0.16 |
| 1.89 |
| 2.05 |
| (0.16) |
| (0.14) |
| (0.30) |
| 13.76 |
|
2020 |
12.01 |
| 0.20 |
| 0.15 |
| 0.35 |
| (0.19) |
| (0.16) |
| (0.35) |
| 12.01 |
|
2019 |
11.72 |
| 0.25 |
| 0.84 |
| 1.09 |
| (0.26) |
| (0.54) |
| (0.80) |
| 12.01 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
10.71 |
| 0.22 |
| 0.15 |
| 0.37 |
| (0.22) |
| (0.27) |
| (0.49) |
| 10.59 |
|
2022 |
13.79 |
| 0.23 |
| (2.37) |
| (2.14) |
| (0.24) |
| (0.70) |
| (0.94) |
| 10.71 |
|
2021 |
12.03 |
| 0.18 |
| 1.90 |
| 2.08 |
| (0.18) |
| (0.14) |
| (0.32) |
| 13.79 |
|
2020 |
12.03 |
| 0.22 |
| 0.15 |
| 0.37 |
| (0.21) |
| (0.16) |
| (0.37) |
| 12.03 |
|
2019 |
11.73 |
| 0.28 |
| 0.84 |
| 1.12 |
| (0.28) |
| (0.54) |
| (0.82) |
| 12.03 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
10.71 |
| 0.23 |
| 0.14 |
| 0.37 |
| (0.23) |
| (0.27) |
| (0.50) |
| 10.58 |
|
2022 |
13.78 |
| 0.25 |
| (2.36) |
| (2.11) |
| (0.26) |
| (0.70) |
| (0.96) |
| 10.71 |
|
2021 |
12.02 |
| 0.19 |
| 1.91 |
| 2.10 |
| (0.20) |
| (0.14) |
| (0.34) |
| 13.78 |
|
2020 |
12.03 |
| 0.23 |
| 0.15 |
| 0.38 |
| (0.23) |
| (0.16) |
| (0.39) |
| 12.02 |
|
2019 |
11.73 |
| 0.28 |
| 0.86 |
| 1.14 |
| (0.30) |
| (0.54) |
| (0.84) |
| 12.03 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| |
Total
Return |
Net
Assets,
End of Period (in thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of Net Investment Income
to
Average
Net
Assets |
Portfolio
Turnover
Rate |
|
|
|
|
| |
|
|
|
|
| |
2.89 |
% |
$1,379 |
| 1.17 |
% |
| 1.52 |
% |
25.5 |
% |
(16.88) |
| 1,649 |
| 1.16 |
|
| 1.55 |
| 55.3 |
|
16.92 |
| 1,956 |
| 1.15 |
|
| 0.96 |
| 29.9 |
|
2.66 |
| 2,577 |
| 1.16 |
|
| 1.30 |
| 19.4 |
|
9.64 |
| 2,572 |
| 1.16 |
| (b) |
1.83 |
| 15.0 |
|
|
|
|
|
| |
3.23 |
| 8,792 |
| 0.86 |
|
| 1.77 |
| 25.5 |
|
(16.60) |
| 8,497 |
| 0.85 |
|
| 1.89 |
| 55.3 |
|
17.18 |
| 11,129 |
| 0.84 |
|
| 1.18 |
| 29.9 |
|
2.97 |
| 12,167 |
| 0.85 |
|
| 1.69 |
| 19.4 |
|
10.03 |
| 14,217 |
| 0.85 |
| (b) |
2.13 |
| 15.0 |
|
|
|
|
|
| |
3.40 |
| 9,339 |
| 0.67 |
|
| 2.02 |
| 25.5 |
|
(16.47) |
| 10,647 |
| 0.66 |
|
| 1.94 |
| 55.3 |
|
17.47 |
| 11,214 |
| 0.65 |
|
| 1.35 |
| 29.9 |
|
3.18 |
| 11,717 |
| 0.66 |
|
| 1.82 |
| 19.4 |
|
10.25 |
| 11,989 |
| 0.66 |
| (b) |
2.39 |
| 15.0 |
|
|
|
|
|
| |
3.45 |
| 19,409 |
| 0.55 |
|
| 2.11 |
| 25.5 |
|
(16.31) |
| 19,091 |
| 0.54 |
|
| 2.11 |
| 55.3 |
|
17.61 |
| 20,710 |
| 0.53 |
|
| 1.46 |
| 29.9 |
|
3.22 |
| 17,108 |
| 0.54 |
|
| 1.94 |
| 19.4 |
|
10.44 |
| 18,302 |
| 0.54 |
| (b) |
2.45 |
| 15.0 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
SAM
CONSERVATIVE GROWTH PORTFOLIO |
Class
A shares |
|
|
|
|
|
|
| |
2023 |
$16.64 |
| $0.19 |
| $0.87 |
| $1.06 |
| ($0.17) |
| ($1.62) |
| ($1.79) |
| $15.91 |
|
2022 |
22.20 |
| 0.33 |
| (4.18) |
| (3.85) |
| (0.26) |
| (1.45) |
| (1.71) |
| 16.64 |
|
2021 |
17.41 |
| 0.17 |
| 5.27 |
| 5.44 |
| (0.24) |
| (0.41) |
| (0.65) |
| 22.20 |
|
2020 |
17.55 |
| 0.25 |
| 0.30 |
| 0.55 |
| (0.25) |
| (0.44) |
| (0.69) |
| 17.41 |
|
2019 |
17.76 |
| 0.25 |
| 1.62 |
| 1.87 |
| (0.26) |
| (1.82) |
| (2.08) |
| 17.55 |
|
Class
C shares |
|
|
|
|
|
|
| |
2023 |
15.03 |
| 0.06 |
| 0.79 |
| 0.85 |
| (0.04) |
| (1.62) |
| (1.66) |
| 14.22 |
|
2022 |
20.21 |
| 0.18 |
| (3.82) |
| (3.64) |
| (0.09) |
| (1.45) |
| (1.54) |
| 15.03 |
|
2021 |
15.91 |
| 0.01 |
| 4.81 |
| 4.82 |
| (0.11) |
| (0.41) |
| (0.52) |
| 20.21 |
|
2020 |
16.09 |
| 0.11 |
| 0.26 |
| 0.37 |
| (0.11) |
| (0.44) |
| (0.55) |
| 15.91 |
|
2019 |
16.45 |
| 0.21 |
| 1.40 |
| 1.61 |
| (0.15) |
| (1.82) |
| (1.97) |
| 16.09 |
|
Class
J shares |
|
|
|
|
|
|
| |
2023 |
15.87 |
| 0.20 |
| 0.84 |
| 1.04 |
| (0.20) |
| (1.62) |
| (1.82) |
| 15.09 |
|
2022 |
21.26 |
| 0.34 |
| (3.99) |
| (3.65) |
| (0.29) |
| (1.45) |
| (1.74) |
| 15.87 |
|
2021 |
16.70 |
| 0.19 |
| 5.05 |
| 5.24 |
| (0.27) |
| (0.41) |
| (0.68) |
| 21.26 |
|
2020 |
16.87 |
| 0.26 |
| 0.29 |
| 0.55 |
| (0.28) |
| (0.44) |
| (0.72) |
| 16.70 |
|
2019 |
17.16 |
| 0.28 |
| 1.54 |
| 1.82 |
| (0.29) |
| (1.82) |
| (2.11) |
| 16.87 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
16.18 |
| 0.23 |
| 0.85 |
| 1.08 |
| (0.22) |
| (1.62) |
| (1.84) |
| 15.42 |
|
2022 |
21.64 |
| 0.38 |
| (4.07) |
| (3.69) |
| (0.32) |
| (1.45) |
| (1.77) |
| 16.18 |
|
2021 |
16.98 |
| 0.23 |
| 5.14 |
| 5.37 |
| (0.30) |
| (0.41) |
| (0.71) |
| 21.64 |
|
2020 |
17.14 |
| 0.30 |
| 0.29 |
| 0.59 |
| (0.31) |
| (0.44) |
| (0.75) |
| 16.98 |
|
2019 |
17.40 |
| 0.31 |
| 1.57 |
| 1.88 |
| (0.32) |
| (1.82) |
| (2.14) |
| 17.14 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average
Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
6.95 |
% |
(b) |
$1,484,518 |
| 0.62 |
% |
| – |
% |
| 1.16 |
% |
25.6 |
% |
(18.70) |
| (b) |
1,508,702 |
| 0.60 |
|
| – |
|
| 1.76 |
| 52.4 |
|
31.84 |
| (b) |
1,979,014 |
| 0.59 |
|
| – |
|
| 0.81 |
| 34.3 |
|
3.11 |
| (b) |
1,570,186 |
| 0.61 |
|
| – |
|
| 1.46 |
| 16.2 |
|
12.74 |
| (b) |
1,683,156 |
| 0.63 |
| (c) |
– |
|
| 1.50 |
| 10.9 |
|
|
|
|
|
|
|
|
| |
6.19 |
| (b) |
92,295 |
| 1.42 |
|
| – |
|
| 0.40 |
| 25.6 |
|
(19.39) |
| (b) |
121,737 |
| 1.37 |
|
| – |
|
| 1.05 |
| 52.4 |
|
30.82 |
| (b) |
190,605 |
| 1.38 |
|
| – |
|
| 0.07 |
| 34.3 |
|
2.28 |
| (b) |
204,754 |
| 1.37 |
|
| – |
|
| 0.74 |
| 16.2 |
|
11.92 |
| (b) |
242,084 |
| 1.39 |
| (c) |
– |
|
| 1.36 |
| 10.9 |
|
|
|
|
|
|
|
|
| |
7.19 |
| (b) |
690,996 |
| 0.45 |
| (d) |
0.47 |
| (e) |
1.32 |
| 25.6 |
|
(18.59) |
| (b) |
636,126 |
| 0.45 |
| (d) |
0.47 |
| (e) |
1.90 |
| 52.4 |
|
32.04 |
| (b) |
778,913 |
| 0.45 |
| (d) |
0.47 |
| (e) |
0.95 |
| 34.3 |
|
3.25 |
| (b) |
575,978 |
| 0.45 |
| (d) |
0.48 |
| (e) |
1.61 |
| 16.2 |
|
12.96 |
| (b) |
582,101 |
| 0.45 |
| (d) |
0.48 |
| (e) |
1.76 |
| 10.9 |
|
|
|
|
|
|
|
|
| |
7.35 |
|
| 397,434 |
| 0.30 |
|
| – |
|
| 1.47 |
| 25.6 |
|
(18.48) |
|
| 395,979 |
| 0.29 |
|
| – |
|
| 2.08 |
| 52.4 |
|
32.27 |
|
| 539,619 |
| 0.29 |
|
| – |
|
| 1.12 |
| 34.3 |
|
3.40 |
|
| 430,895 |
| 0.30 |
|
| – |
|
| 1.79 |
| 16.2 |
|
13.14 |
|
| 474,902 |
| 0.30 |
| (c) |
– |
|
| 1.92 |
| 10.9 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit.
(d)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(e)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
SAM
CONSERVATIVE GROWTH PORTFOLIO |
R-1
shares |
|
|
|
|
|
|
| |
2023 |
$15.83 |
| $0.10 |
| $0.83 |
| $0.93 |
| ($0.09) |
| ($1.62) |
| ($1.71) |
| $15.05 |
|
2022 |
21.22 |
| 0.21 |
| (3.99) |
| (3.78) |
| (0.16) |
| (1.45) |
| (1.61) |
| 15.83 |
|
2021 |
16.70 |
| 0.03 |
| 5.08 |
| 5.11 |
| (0.18) |
| (0.41) |
| (0.59) |
| 21.22 |
|
2020 |
16.89 |
| 0.15 |
| 0.27 |
| 0.42 |
| (0.17) |
| (0.44) |
| (0.61) |
| 16.70 |
|
2019 |
17.10 |
| 0.18 |
| 1.55 |
| 1.73 |
| (0.12) |
| (1.82) |
| (1.94) |
| 16.89 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
15.82 |
| 0.15 |
| 0.83 |
| 0.98 |
| (0.12) |
| (1.62) |
| (1.74) |
| 15.06 |
|
2022 |
21.20 |
| 0.28 |
| (4.01) |
| (3.73) |
| (0.20) |
| (1.45) |
| (1.65) |
| 15.82 |
|
2021 |
16.65 |
| 0.11 |
| 5.05 |
| 5.16 |
| (0.20) |
| (0.41) |
| (0.61) |
| 21.20 |
|
2020 |
16.82 |
| 0.22 |
| 0.26 |
| 0.48 |
| (0.21) |
| (0.44) |
| (0.65) |
| 16.65 |
|
2019 |
17.11 |
| 0.24 |
| 1.52 |
| 1.76 |
| (0.23) |
| (1.82) |
| (2.05) |
| 16.82 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
16.12 |
| 0.20 |
| 0.83 |
| 1.03 |
| (0.17) |
| (1.62) |
| (1.79) |
| 15.36 |
|
2022 |
21.54 |
| 0.26 |
| (4.02) |
| (3.76) |
| (0.21) |
| (1.45) |
| (1.66) |
| 16.12 |
|
2021 |
16.91 |
| 0.14 |
| 5.13 |
| 5.27 |
| (0.23) |
| (0.41) |
| (0.64) |
| 21.54 |
|
2020 |
17.05 |
| 0.23 |
| 0.29 |
| 0.52 |
| (0.22) |
| (0.44) |
| (0.66) |
| 16.91 |
|
2019 |
17.31 |
| 0.26 |
| 1.55 |
| 1.81 |
| (0.25) |
| (1.82) |
| (2.07) |
| 17.05 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
16.03 |
| 0.19 |
| 0.84 |
| 1.03 |
| (0.18) |
| (1.62) |
| (1.80) |
| 15.26 |
|
2022 |
21.46 |
| 0.34 |
| (4.04) |
| (3.70) |
| (0.28) |
| (1.45) |
| (1.73) |
| 16.03 |
|
2021 |
16.85 |
| 0.17 |
| 5.10 |
| 5.27 |
| (0.25) |
| (0.41) |
| (0.66) |
| 21.46 |
|
2020 |
17.01 |
| 0.25 |
| 0.30 |
| 0.55 |
| (0.27) |
| (0.44) |
| (0.71) |
| 16.85 |
|
2019 |
17.28 |
| 0.27 |
| 1.55 |
| 1.82 |
| (0.27) |
| (1.82) |
| (2.09) |
| 17.01 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| |
Total
Return |
Net
Assets,
End of Period (in thousands) |
Ratio
of
Expenses
to
Average
Net Assets |
Ratio
of Net Investment Income
to
Average
Net
Assets |
Portfolio
Turnover
Rate |
|
|
|
|
| |
|
|
|
|
| |
6.44 |
% |
$1,114 |
| 1.16 |
% |
| 0.66 |
% |
25.6 |
% |
(19.18) |
| 1,557 |
| 1.16 |
|
| 1.16 |
| 52.4 |
|
31.17 |
| 1,839 |
| 1.15 |
|
| 0.16 |
| 34.3 |
|
2.47 |
| 1,098 |
| 1.16 |
|
| 0.90 |
| 16.2 |
|
12.16 |
| 1,131 |
| 1.16 |
| (b) |
1.13 |
| 10.9 |
|
|
|
|
|
| |
6.80 |
| 7,737 |
| 0.85 |
|
| 0.98 |
| 25.6 |
|
(18.95) |
| 10,909 |
| 0.85 |
|
| 1.58 |
| 52.4 |
|
31.58 |
| 15,823 |
| 0.84 |
|
| 0.56 |
| 34.3 |
|
2.81 |
| 13,833 |
| 0.85 |
|
| 1.35 |
| 16.2 |
|
12.52 |
| 17,303 |
| 0.85 |
| (b) |
1.49 |
| 10.9 |
|
|
|
|
|
| |
6.98 |
| 4,143 |
| 0.66 |
|
| 1.27 |
| 25.6 |
|
(18.80) |
| 5,754 |
| 0.66 |
|
| 1.44 |
| 52.4 |
|
31.78 |
| 8,882 |
| 0.65 |
|
| 0.69 |
| 34.3 |
|
3.02 |
| 6,076 |
| 0.66 |
|
| 1.40 |
| 16.2 |
|
12.70 |
| 6,943 |
| 0.66 |
| (b) |
1.61 |
| 10.9 |
|
|
|
|
|
| |
7.04 |
| 24,555 |
| 0.54 |
|
| 1.21 |
| 25.6 |
|
(18.66) |
| 23,881 |
| 0.54 |
|
| 1.86 |
| 52.4 |
|
31.91 |
| 30,075 |
| 0.53 |
|
| 0.86 |
| 34.3 |
|
3.18 |
| 22,124 |
| 0.54 |
|
| 1.54 |
| 16.2 |
|
12.81 |
| 26,719 |
| 0.54 |
| (b) |
1.66 |
| 10.9 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
SAM
FLEXIBLE INCOME PORTFOLIO |
|
|
|
|
|
| |
Class
A
shares |
|
|
|
|
|
|
| |
2023 |
$10.78 |
| $0.26 |
| ($0.03) |
| $0.23 |
| ($0.26) |
| $– |
| ($0.26) |
| $10.75 |
|
2022 |
13.56 |
| 0.28 |
| (2.25) |
| (1.97) |
| (0.28) |
| (0.53) |
| (0.81) |
| 10.78 |
|
2021 |
12.38 |
| 0.23 |
| 1.29 |
| 1.52 |
| (0.23) |
| (0.11) |
| (0.34) |
| 13.56 |
|
2020 |
12.40 |
| 0.25 |
| 0.03 |
| 0.28 |
| (0.25) |
| (0.05) |
| (0.30) |
| 12.38 |
|
2019 |
12.08 |
| 0.34 |
| 0.79 |
| 1.13 |
| (0.34) |
| (0.47) |
| (0.81) |
| 12.40 |
|
Class
C
shares |
|
|
|
|
|
|
| |
2023 |
10.66 |
| 0.18 |
| (0.05) |
| 0.13 |
| (0.17) |
| – |
| (0.17) |
| 10.62 |
|
2022 |
13.41 |
| 0.19 |
| (2.22) |
| (2.03) |
| (0.19) |
| (0.53) |
| (0.72) |
| 10.66 |
|
2021 |
12.24 |
| 0.13 |
| 1.27 |
| 1.40 |
| (0.12) |
| (0.11) |
| (0.23) |
| 13.41 |
|
2020 |
12.26 |
| 0.16 |
| 0.03 |
| 0.19 |
| (0.16) |
| (0.05) |
| (0.21) |
| 12.24 |
|
2019 |
11.96 |
| 0.25 |
| 0.77 |
| 1.02 |
| (0.25) |
| (0.47) |
| (0.72) |
| 12.26 |
|
Class
J
shares |
|
|
|
|
|
|
| |
2023 |
10.67 |
| 0.28 |
| (0.04) |
| 0.24 |
| (0.28) |
| – |
| (0.28) |
| 10.63 |
|
2022 |
13.43 |
| 0.29 |
| (2.22) |
| (1.93) |
| (0.30) |
| (0.53) |
| (0.83) |
| 10.67 |
|
2021 |
12.26 |
| 0.25 |
| 1.28 |
| 1.53 |
| (0.25) |
| (0.11) |
| (0.36) |
| 13.43 |
|
2020 |
12.29 |
| 0.27 |
| 0.02 |
| 0.29 |
| (0.27) |
| (0.05) |
| (0.32) |
| 12.26 |
|
2019 |
11.98 |
| 0.36 |
| 0.78 |
| 1.14 |
| (0.36) |
| (0.47) |
| (0.83) |
| 12.29 |
|
Institutional
shares |
|
|
|
|
|
| |
2023 |
10.74 |
| 0.29 |
| (0.04) |
| 0.25 |
| (0.29) |
| – |
| (0.29) |
| 10.70 |
|
2022 |
13.51 |
| 0.31 |
| (2.23) |
| (1.92) |
| (0.32) |
| (0.53) |
| (0.85) |
| 10.74 |
|
2021 |
12.34 |
| 0.26 |
| 1.28 |
| 1.54 |
| (0.26) |
| (0.11) |
| (0.37) |
| 13.51 |
|
2020 |
12.36 |
| 0.28 |
| 0.03 |
| 0.31 |
| (0.28) |
| (0.05) |
| (0.33) |
| 12.34 |
|
2019 |
12.04 |
| 0.37 |
| 0.79 |
| 1.16 |
| (0.37) |
| (0.47) |
| (0.84) |
| 12.36 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average
Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
2.05 |
% |
(b) |
$919,005 |
| 0.61 |
% |
| – |
% |
| 2.33 |
% |
20.8 |
% |
(15.28) |
| (b) |
1,032,096 |
| 0.60 |
|
| – |
|
| 2.32 |
| 57.3 |
|
12.40 |
| (b) |
1,289,067 |
| 0.59 |
|
| – |
|
| 1.72 |
| 29.3 |
|
2.30 |
| (b) |
1,085,818 |
| 0.60 |
|
| – |
|
| 2.04 |
| 35.9 |
|
9.93 |
| (b) |
1,057,769 |
| 0.61 |
| (c) |
– |
|
| 2.82 |
| 11.1 |
|
|
|
|
|
|
|
|
| |
1.15 |
| (b) |
91,832 |
| 1.40 |
|
| – |
|
| 1.60 |
| 20.8 |
|
(15.90) |
| (b) |
135,741 |
| 1.38 |
|
| – |
|
| 1.57 |
| 57.3 |
|
11.58 |
| (b) |
205,567 |
| 1.36 |
|
| – |
|
| 0.96 |
| 29.3 |
|
1.54 |
| (b) |
237,410 |
| 1.37 |
|
| – |
|
| 1.29 |
| 35.9 |
|
9.02 |
| (b) |
265,220 |
| 1.37 |
| (c) |
– |
|
| 2.13 |
| 11.1 |
|
|
|
|
|
|
|
|
| |
2.16 |
| (b) |
1,064,611 |
| 0.43 |
| (d) |
0.45 |
| (e) |
2.49 |
| 20.8 |
|
(15.14) |
| (b) |
1,086,460 |
| 0.44 |
| (d) |
0.46 |
| (e) |
2.48 |
| 57.3 |
|
12.61 |
| (b) |
1,321,469 |
| 0.44 |
| (d) |
0.46 |
| (e) |
1.88 |
| 29.3 |
|
2.42 |
| (b) |
1,132,937 |
| 0.43 |
| (d) |
0.46 |
| (e) |
2.22 |
| 35.9 |
|
10.13 |
| (b) |
1,139,080 |
| 0.43 |
| (d) |
0.46 |
| (e) |
3.01 |
| 11.1 |
|
|
|
|
|
|
|
|
| |
2.25 |
|
| 164,167 |
| 0.32 |
|
| – |
|
| 2.60 |
| 20.8 |
|
(15.01) |
|
| 173,873 |
| 0.31 |
|
| – |
|
| 2.62 |
| 57.3 |
|
12.68 |
|
| 236,379 |
| 0.31 |
|
| – |
|
| 2.00 |
| 29.3 |
|
2.60 |
|
| 200,957 |
| 0.32 |
|
| – |
|
| 2.33 |
| 35.9 |
|
10.29 |
|
| 220,903 |
| 0.32 |
| (c) |
– |
|
| 3.12 |
| 11.1 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit.
(d)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(e)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
SAM
FLEXIBLE INCOME PORTFOLIO |
|
|
|
|
|
| |
R-1
shares |
|
|
|
|
|
|
| |
2023 |
$10.68 |
| $0.19 |
| ($0.03) |
| $0.16 |
| ($0.20) |
| $– |
| ($0.20) |
| $10.64 |
|
2022 |
13.44 |
| 0.21 |
| (2.23) |
| (2.02) |
| (0.21) |
| (0.53) |
| (0.74) |
| 10.68 |
|
2021 |
12.27 |
| 0.15 |
| 1.28 |
| 1.43 |
| (0.15) |
| (0.11) |
| (0.26) |
| 13.44 |
|
2020 |
12.29 |
| 0.19 |
| 0.02 |
| 0.21 |
| (0.18) |
| (0.05) |
| (0.23) |
| 12.27 |
|
2019 |
11.98 |
| 0.27 |
| 0.79 |
| 1.06 |
| (0.28) |
| (0.47) |
| (0.75) |
| 12.29 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
10.71 |
| 0.24 |
| (0.04) |
| 0.20 |
| (0.23) |
| – |
| (0.23) |
| 10.68 |
|
2022 |
13.48 |
| 0.25 |
| (2.24) |
| (1.99) |
| (0.25) |
| (0.53) |
| (0.78) |
| 10.71 |
|
2021 |
12.31 |
| 0.19 |
| 1.28 |
| 1.47 |
| (0.19) |
| (0.11) |
| (0.30) |
| 13.48 |
|
2020 |
12.33 |
| 0.22 |
| 0.03 |
| 0.25 |
| (0.22) |
| (0.05) |
| (0.27) |
| 12.31 |
|
2019 |
12.02 |
| 0.31 |
| 0.78 |
| 1.09 |
| (0.31) |
| (0.47) |
| (0.78) |
| 12.33 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
10.73 |
| 0.25 |
| (0.04) |
| 0.21 |
| (0.25) |
| – |
| (0.25) |
| 10.69 |
|
2022 |
13.50 |
| 0.27 |
| (2.24) |
| (1.97) |
| (0.27) |
| (0.53) |
| (0.80) |
| 10.73 |
|
2021 |
12.32 |
| 0.22 |
| 1.29 |
| 1.51 |
| (0.22) |
| (0.11) |
| (0.33) |
| 13.50 |
|
2020 |
12.34 |
| 0.24 |
| 0.03 |
| 0.27 |
| (0.24) |
| (0.05) |
| (0.29) |
| 12.32 |
|
2019 |
12.03 |
| 0.34 |
| 0.77 |
| 1.11 |
| (0.33) |
| (0.47) |
| (0.80) |
| 12.34 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
10.72 |
| 0.26 |
| (0.04) |
| 0.22 |
| (0.26) |
| – |
| (0.26) |
| 10.68 |
|
2022 |
13.48 |
| 0.28 |
| (2.22) |
| (1.94) |
| (0.29) |
| (0.53) |
| (0.82) |
| 10.72 |
|
2021 |
12.31 |
| 0.23 |
| 1.28 |
| 1.51 |
| (0.23) |
| (0.11) |
| (0.34) |
| 13.48 |
|
2020 |
12.33 |
| 0.26 |
| 0.03 |
| 0.29 |
| (0.26) |
| (0.05) |
| (0.31) |
| 12.31 |
|
2019 |
12.02 |
| 0.35 |
| 0.78 |
| 1.13 |
| (0.35) |
| (0.47) |
| (0.82) |
| 12.33 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| |
Total
Return |
Net
Assets,
End of Period (in thousands) |
Ratio
of
Expenses
to
Average
Net Assets |
Ratio
of Net Investment Income
to
Average
Net
Assets |
Portfolio
Turnover
Rate |
|
|
|
|
| |
|
|
|
|
| |
1.41 |
% |
$2,338 |
| 1.16 |
% |
| 1.71 |
% |
20.8 |
% |
(15.73) |
| 2,079 |
| 1.16 |
|
| 1.74 |
| 57.3 |
|
11.81 |
| 2,432 |
| 1.15 |
|
| 1.16 |
| 29.3 |
|
1.74 |
| 2,307 |
| 1.16 |
|
| 1.53 |
| 35.9 |
|
9.37 |
| 3,225 |
| 1.16 |
| (b) |
2.23 |
| 11.1 |
|
|
|
|
|
| |
1.81 |
| 3,109 |
| 0.85 |
|
| 2.15 |
| 20.8 |
|
(15.51) |
| 3,569 |
| 0.85 |
|
| 2.07 |
| 57.3 |
|
12.11 |
| 5,117 |
| 0.84 |
|
| 1.48 |
| 29.3 |
|
2.07 |
| 4,729 |
| 0.85 |
|
| 1.81 |
| 35.9 |
|
9.64 |
| 5,088 |
| 0.85 |
| (b) |
2.60 |
| 11.1 |
|
|
|
|
|
| |
1.91 |
| 3,359 |
| 0.66 |
|
| 2.23 |
| 20.8 |
|
(15.33) |
| 2,843 |
| 0.66 |
|
| 2.26 |
| 57.3 |
|
12.39 |
| 5,108 |
| 0.65 |
|
| 1.65 |
| 29.3 |
|
2.26 |
| 4,664 |
| 0.66 |
|
| 1.94 |
| 35.9 |
|
9.82 |
| 3,019 |
| 0.66 |
| (b) |
2.87 |
| 11.1 |
|
|
|
|
|
| |
2.03 |
| 7,888 |
| 0.54 |
|
| 2.37 |
| 20.8 |
|
(15.16) |
| 8,059 |
| 0.54 |
|
| 2.38 |
| 57.3 |
|
12.46 |
| 10,225 |
| 0.53 |
|
| 1.78 |
| 29.3 |
|
2.38 |
| 7,970 |
| 0.54 |
|
| 2.10 |
| 35.9 |
|
9.97 |
| 8,353 |
| 0.54 |
| (b) |
2.93 |
| 11.1 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
SAM
STRATEGIC GROWTH PORTFOLIO |
|
|
|
|
|
| |
Class
A shares |
|
|
|
|
|
|
| |
2023 |
$18.24 |
| $0.14 |
| $1.32 |
| $1.46 |
| ($0.13) |
| ($1.46) |
| ($1.59) |
| $18.11 |
|
2022 |
24.57 |
| 0.34 |
| (4.93) |
| (4.59) |
| (0.34) |
| (1.40) |
| (1.74) |
| 18.24 |
|
2021 |
18.57 |
| 0.17 |
| 6.67 |
| 6.84 |
| (0.17) |
| (0.67) |
| (0.84) |
| 24.57 |
|
2020 |
18.67 |
| 0.21 |
| 0.53 |
| 0.74 |
| (0.25) |
| (0.59) |
| (0.84) |
| 18.57 |
|
2019 |
19.81 |
| 0.22 |
| 1.86 |
| 2.08 |
| (0.33) |
| (2.89) |
| (3.22) |
| 18.67 |
|
Class
C shares |
|
|
|
|
|
|
| |
2023 |
15.88 |
| (0.01) |
| 1.13 |
| 1.12 |
| – |
| (1.46) |
| (1.46) |
| 15.54 |
|
2022 |
21.60 |
| 0.17 |
| (4.33) |
| (4.16) |
| (0.16) |
| (1.40) |
| (1.56) |
| 15.88 |
|
2021 |
16.43 |
| 0.01 |
| 5.87 |
| 5.88 |
| (0.04) |
| (0.67) |
| (0.71) |
| 21.60 |
|
2020 |
16.60 |
| 0.07 |
| 0.46 |
| 0.53 |
| (0.11) |
| (0.59) |
| (0.70) |
| 16.43 |
|
2019 |
17.98 |
| 0.18 |
| 1.54 |
| 1.72 |
| (0.21) |
| (2.89) |
| (3.10) |
| 16.60 |
|
Class
J shares |
|
|
|
|
|
|
| |
2023 |
17.39 |
| 0.15 |
| 1.26 |
| 1.41 |
| (0.16) |
| (1.46) |
| (1.62) |
| 17.18 |
|
2022 |
23.51 |
| 0.35 |
| (4.70) |
| (4.35) |
| (0.37) |
| (1.40) |
| (1.77) |
| 17.39 |
|
2021 |
17.80 |
| 0.19 |
| 6.39 |
| 6.58 |
| (0.20) |
| (0.67) |
| (0.87) |
| 23.51 |
|
2020 |
17.93 |
| 0.23 |
| 0.51 |
| 0.74 |
| (0.28) |
| (0.59) |
| (0.87) |
| 17.80 |
|
2019 |
19.17 |
| 0.26 |
| 1.76 |
| 2.02 |
| (0.37) |
| (2.89) |
| (3.26) |
| 17.93 |
|
Institutional
shares |
|
|
|
|
|
| |
2023 |
17.69 |
| 0.19 |
| 1.27 |
| 1.46 |
| (0.19) |
| (1.46) |
| (1.65) |
| 17.50 |
|
2022 |
23.88 |
| 0.40 |
| (4.78) |
| (4.38) |
| (0.41) |
| (1.40) |
| (1.81) |
| 17.69 |
|
2021 |
18.06 |
| 0.23 |
| 6.49 |
| 6.72 |
| (0.23) |
| (0.67) |
| (0.90) |
| 23.88 |
|
2020 |
18.18 |
| 0.26 |
| 0.52 |
| 0.78 |
| (0.31) |
| (0.59) |
| (0.90) |
| 18.06 |
|
2019 |
19.39 |
| 0.29 |
| 1.78 |
| 2.07 |
| (0.39) |
| (2.89) |
| (3.28) |
| 18.18 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average
Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
8.57 |
% |
(b) |
$1,081,383 |
| 0.63 |
% |
| – |
% |
| 0.73 |
% |
27.2 |
% |
(19.99) |
| (b) |
1,066,233 |
| 0.61 |
|
| – |
|
| 1.67 |
| 49.5 |
|
37.68 |
| (b) |
1,401,140 |
| 0.60 |
|
| – |
|
| 0.75 |
| 26.3 |
|
3.93 |
| (b) |
1,069,149 |
| 0.62 |
|
| – |
|
| 1.15 |
| 19.9 |
|
13.89 |
| (b) |
1,114,994 |
| 0.64 |
| (c) |
– |
|
| 1.26 |
| 19.9 |
|
|
|
|
|
|
|
|
| |
7.61 |
| (b) |
66,235 |
| 1.45 |
|
| – |
|
| (0.03) |
| 27.2 |
|
(20.59) |
| (b) |
77,837 |
| 1.41 |
|
| – |
|
| 0.94 |
| 49.5 |
|
36.56 |
| (b) |
115,136 |
| 1.39 |
|
| – |
|
| 0.04 |
| 26.3 |
|
3.14 |
| (b) |
120,962 |
| 1.40 |
|
| – |
|
| 0.41 |
| 19.9 |
|
13.01 |
| (b) |
139,759 |
| 1.42 |
| (c) |
– |
|
| 1.12 |
| 19.9 |
|
|
|
|
|
|
|
|
| |
8.73 |
| (b) |
372,876 |
| 0.47 |
| (d) |
0.49 |
| (e) |
0.87 |
| 27.2 |
|
(19.87) |
| (b) |
334,032 |
| 0.47 |
| (d) |
0.49 |
| (e) |
1.78 |
| 49.5 |
|
37.88 |
| (b) |
410,297 |
| 0.46 |
| (d) |
0.48 |
| (e) |
0.88 |
| 26.3 |
|
4.11 |
| (b) |
295,433 |
| 0.46 |
| (d) |
0.49 |
| (e) |
1.31 |
| 19.9 |
|
14.07 |
| (b) |
308,330 |
| 0.47 |
| (d) |
0.50 |
| (e) |
1.50 |
| 19.9 |
|
|
|
|
|
|
|
|
| |
8.89 |
|
| 299,870 |
| 0.30 |
|
| – |
|
| 1.04 |
| 27.2 |
|
(19.73) |
|
| 271,120 |
| 0.29 |
|
| – |
|
| 1.99 |
| 49.5 |
|
38.14 |
|
| 362,447 |
| 0.29 |
|
| – |
|
| 1.05 |
| 26.3 |
|
4.27 |
|
| 260,585 |
| 0.30 |
|
| – |
|
| 1.47 |
| 19.9 |
|
14.26 |
|
| 278,919 |
| 0.30 |
| (c) |
– |
|
| 1.66 |
| 19.9 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit.
(d)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(e)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
SAM
STRATEGIC
GROWTH
PORTFOLIO |
|
|
|
|
| |
R-1
shares |
|
|
|
|
|
|
| |
2023 |
$17.52 |
| $0.01 |
| $1.30 |
| $1.31 |
| ($0.03) |
| ($1.46) |
| ($1.49) |
| $17.34 |
|
2022 |
23.67 |
| 0.22 |
| (4.77) |
| (4.55) |
| (0.20) |
| (1.40) |
| (1.60) |
| 17.52 |
|
2021 |
17.81 |
| 0.03 |
| 6.44 |
| 6.47 |
| – |
| (0.61) |
| (0.61) |
| 23.67 |
|
2020 |
17.99 |
| 0.04 |
| 0.52 |
| 0.56 |
| (0.15) |
| (0.59) |
| (0.74) |
| 17.81 |
|
2019 |
19.11 |
| 0.19 |
| 1.74 |
| 1.93 |
| (0.16) |
| (2.89) |
| (3.05) |
| 17.99 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
17.31 |
| 0.09 |
| 1.25 |
| 1.34 |
| (0.09) |
| (1.46) |
| (1.55) |
| 17.10 |
|
2022 |
23.43 |
| 0.32 |
| (4.74) |
| (4.42) |
| (0.30) |
| (1.40) |
| (1.70) |
| 17.31 |
|
2021 |
17.72 |
| 0.08 |
| 6.40 |
| 6.48 |
| (0.10) |
| (0.67) |
| (0.77) |
| 23.43 |
|
2020 |
17.86 |
| 0.18 |
| 0.48 |
| 0.66 |
| (0.21) |
| (0.59) |
| (0.80) |
| 17.72 |
|
2019 |
19.09 |
| 0.23 |
| 1.73 |
| 1.96 |
| (0.30) |
| (2.89) |
| (3.19) |
| 17.86 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
17.58 |
| 0.10 |
| 1.30 |
| 1.40 |
| (0.13) |
| (1.46) |
| (1.59) |
| 17.39 |
|
2022 |
23.66 |
| 0.29 |
| (4.74) |
| (4.45) |
| (0.23) |
| (1.40) |
| (1.63) |
| 17.58 |
|
2021 |
17.91 |
| 0.18 |
| 6.40 |
| 6.58 |
| (0.16) |
| (0.67) |
| (0.83) |
| 23.66 |
|
2020 |
18.02 |
| 0.19 |
| 0.52 |
| 0.71 |
| (0.23) |
| (0.59) |
| (0.82) |
| 17.91 |
|
2019 |
19.23 |
| 0.27 |
| 1.73 |
| 2.00 |
| (0.32) |
| (2.89) |
| (3.21) |
| 18.02 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
17.43 |
| 0.14 |
| 1.26 |
| 1.40 |
| (0.14) |
| (1.46) |
| (1.60) |
| 17.23 |
|
2022 |
23.56 |
| 0.33 |
| (4.70) |
| (4.37) |
| (0.36) |
| (1.40) |
| (1.76) |
| 17.43 |
|
2021 |
17.84 |
| 0.17 |
| 6.40 |
| 6.57 |
| (0.18) |
| (0.67) |
| (0.85) |
| 23.56 |
|
2020 |
17.97 |
| 0.22 |
| 0.51 |
| 0.73 |
| (0.27) |
| (0.59) |
| (0.86) |
| 17.84 |
|
2019 |
19.20 |
| 0.24 |
| 1.77 |
| 2.01 |
| (0.35) |
| (2.89) |
| (3.24) |
| 17.97 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
| |
|
|
|
|
|
| |
8.01 |
% |
| $430 |
| 1.16 |
% |
| 0.07 |
% |
27.2 |
% |
(20.45) |
|
| 319 |
| 1.16 |
|
| 1.11 |
| 49.5 |
|
36.96 |
|
| 420 |
| 1.15 |
|
| 0.15 |
| 26.3 |
|
3.07 |
|
| 344 |
| 1.16 |
|
| 0.22 |
| 19.9 |
|
13.32 |
|
| 413 |
| 1.16 |
| (b) |
1.08 |
| 19.9 |
|
|
|
|
|
|
| |
8.33 |
|
| 6,746 |
| 0.85 |
|
| 0.50 |
| 27.2 |
|
(20.20) |
|
| 6,564 |
| 0.85 |
|
| 1.60 |
| 49.5 |
|
37.38 |
|
| 9,782 |
| 0.84 |
|
| 0.36 |
| 26.3 |
|
3.66 |
|
| 6,440 |
| 0.85 |
|
| 1.05 |
| 19.9 |
|
13.69 |
|
| 7,794 |
| 0.85 |
| (b) |
1.34 |
| 19.9 |
|
|
|
|
|
|
| |
8.55 |
|
| 5,357 |
| 0.66 |
|
| 0.54 |
| 27.2 |
|
(20.05) |
|
| 3,013 |
| 0.66 |
|
| 1.49 |
| 49.5 |
|
37.63 |
|
| 4,069 |
| 0.65 |
|
| 0.84 |
| 26.3 |
|
3.91 |
|
| 8,355 |
| 0.66 |
|
| 1.10 |
| 19.9 |
|
13.88 |
|
| 9,416 |
| 0.66 |
| (b) |
1.55 |
| 19.9 |
|
|
|
|
|
|
| |
8.67 |
|
| 19,279 |
| 0.54 |
|
| 0.79 |
| 27.2 |
|
(19.95) |
| (c) |
19,246 |
| 0.54 |
|
| 1.70 |
| 49.5 |
|
37.80 |
| (c) |
24,908 |
| 0.53 |
|
| 0.77 |
| 26.3 |
|
4.04 |
|
| 15,052 |
| 0.54 |
|
| 1.28 |
| 19.9 |
|
13.99 |
|
| 16,847 |
| 0.54 |
| (b) |
1.39 |
| 19.9 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Reflects
Manager's
contractual
expense
limit.
(c)Total
return
is
calculated
using
the
traded
net
asset
value
which
may
differ
from
the
reported
net
asset
value.
The
traded
net
asset
value
is
the
net
asset
value
which a shareholder would have paid or received from a subscription or
redemption.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data
for
a
share
of
Capital
Stock
outstanding
throughout
each
year
ended
October
31
(except
as
noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
SHORT-TERM
INCOME
FUND |
|
|
|
|
|
| |
Class
A
shares |
|
|
|
|
|
|
| |
2023 |
$11.40 |
| $0.32 |
| $0.18 |
| $0.50 |
| ($0.33) |
| $– |
| ($0.33) |
| $11.57 |
|
2022 |
12.32 |
| 0.16 |
| (0.86) |
| (0.70) |
| (0.16) |
| (0.06) |
| (0.22) |
| 11.40 |
|
2021 |
12.54 |
| 0.11 |
| (0.13) |
| (0.02) |
| (0.11) |
| (0.09) |
| (0.20) |
| 12.32 |
|
2020 |
12.32 |
| 0.20 |
| 0.22 |
| 0.42 |
| (0.20) |
| – |
| (0.20) |
| 12.54 |
|
2019 |
12.01 |
| 0.27 |
| 0.31 |
| 0.58 |
| (0.27) |
| – |
| (0.27) |
| 12.32 |
|
Class
C shares |
|
|
|
|
|
|
| |
2023 |
11.40 |
| 0.21 |
| 0.18 |
| 0.39 |
| (0.21) |
| – |
| (0.21) |
| 11.58 |
|
2022 |
12.32 |
| 0.05 |
| (0.86) |
| (0.81) |
| (0.05) |
| (0.06) |
| (0.11) |
| 11.40 |
|
2021 |
12.55 |
| – |
| (0.13) |
| (0.13) |
| (0.01) |
| (0.09) |
| (0.10) |
| 12.32 |
|
2020 |
12.33 |
| 0.09 |
| 0.22 |
| 0.31 |
| (0.09) |
| – |
| (0.09) |
| 12.55 |
|
2019 |
12.01 |
| 0.16 |
| 0.32 |
| 0.48 |
| (0.16) |
| – |
| (0.16) |
| 12.33 |
|
Class
J shares |
|
|
|
|
|
|
| |
2023 |
11.39 |
| 0.33 |
| 0.17 |
| 0.50 |
| (0.33) |
| – |
| (0.33) |
| 11.56 |
|
2022 |
12.31 |
| 0.16 |
| (0.86) |
| (0.70) |
| (0.16) |
| (0.06) |
| (0.22) |
| 11.39 |
|
2021 |
12.53 |
| 0.12 |
| (0.13) |
| (0.01) |
| (0.12) |
| (0.09) |
| (0.21) |
| 12.31 |
|
2020 |
12.31 |
| 0.20 |
| 0.23 |
| 0.43 |
| (0.21) |
| – |
| (0.21) |
| 12.53 |
|
2019 |
12.00 |
| 0.27 |
| 0.31 |
| 0.58 |
| (0.27) |
| – |
| (0.27) |
| 12.31 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
11.39 |
| 0.35 |
| 0.18 |
| 0.53 |
| (0.35) |
| – |
| (0.35) |
| 11.57 |
|
2022 |
12.31 |
| 0.18 |
| (0.85) |
| (0.67) |
| (0.19) |
| (0.06) |
| (0.25) |
| 11.39 |
|
2021 |
12.53 |
| 0.14 |
| (0.13) |
| 0.01 |
| (0.14) |
| (0.09) |
| (0.23) |
| 12.31 |
|
2020 |
12.31 |
| 0.23 |
| 0.22 |
| 0.45 |
| (0.23) |
| – |
| (0.23) |
| 12.53 |
|
2019 |
12.00 |
| 0.30 |
| 0.31 |
| 0.61 |
| (0.30) |
| – |
| (0.30) |
| 12.31 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets,
End
of
Period
(in
thousands) |
Ratio
of
Expenses
to
Average
Net
Assets |
Ratio
of
Gross
Expenses
to
Average
Net Assets |
Ratio
of
Net
Investment
Income
to
Average
Net Assets |
Portfolio
Turnover
Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
4.39 |
% |
(b) |
$316,038 |
| 0.65 |
% |
| – |
% |
| 2.79 |
% |
35.4 |
% |
(5.73) |
| (b) |
353,052 |
| 0.65 |
|
| – |
|
| 1.32 |
| 28.4 |
|
(0.17) |
| (b) |
470,326 |
| 0.67 |
|
| – |
|
| 0.89 |
| 52.4 |
|
3.47 |
| (b) |
445,243 |
| 0.67 |
|
| – |
|
| 1.59 |
| 76.0 |
|
4.88 |
| (b) |
310,526 |
| 0.69 |
|
| – |
|
| 2.22 |
| 52.4 |
|
|
|
|
|
|
|
|
| |
3.46 |
| (b) |
17,277 |
| 1.63 |
|
| – |
|
| 1.79 |
| 35.4 |
|
(6.61) |
| (b) |
23,675 |
| 1.57 |
|
| – |
|
| 0.38 |
| 28.4 |
|
(1.09) |
| (b) |
34,992 |
| 1.56 |
|
| – |
|
| 0.02 |
| 52.4 |
|
2.55 |
| (b) |
57,463 |
| 1.56 |
|
| – |
|
| 0.72 |
| 76.0 |
|
4.03 |
| (b) |
51,869 |
| 1.59 |
|
| – |
|
| 1.33 |
| 52.4 |
|
|
|
|
|
|
|
|
| |
4.43 |
| (b) |
115,360 |
| 0.61 |
| (c) |
0.63 |
| (d) |
2.83 |
| 35.4 |
|
(5.72) |
| (b) |
127,563 |
| 0.62 |
| (c) |
0.64 |
| (d) |
1.36 |
| 28.4 |
|
(0.13) |
| (b) |
154,334 |
| 0.62 |
| (c) |
0.65 |
| (d) |
0.94 |
| 52.4 |
|
3.49 |
| (b) |
168,395 |
| 0.65 |
| (c) |
0.68 |
| (d) |
1.62 |
| 76.0 |
|
4.91 |
| (b) |
131,795 |
| 0.67 |
| (c) |
0.70 |
| (d) |
2.24 |
| 52.4 |
|
|
|
|
|
|
|
|
| |
4.72 |
|
| 2,375,615 |
| 0.42 |
| (e) |
– |
|
| 3.02 |
| 35.4 |
|
(5.53) |
|
| 2,654,929 |
| 0.43 |
| (e) |
– |
|
| 1.53 |
| 28.4 |
|
0.06 |
|
| 3,531,191 |
| 0.43 |
| (e) |
– |
|
| 1.14 |
| 52.4 |
|
3.72 |
|
| 5,210,042 |
| 0.43 |
| (e) |
– |
|
| 1.85 |
| 76.0 |
|
5.16 |
|
| 4,736,982 |
| 0.43 |
| (e) |
– |
|
| 2.48 |
| 52.4 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(d)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(e)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
SHORT-TERM
INCOME FUND |
|
|
|
|
|
|
| |
R-1
shares |
|
|
|
|
|
|
| |
2023 |
$11.39 |
| $0.25 |
| $0.19 |
| $0.44 |
| ($0.26) |
| $– |
| ($0.26) |
| $11.57 |
|
2022 |
12.31 |
| 0.09 |
| (0.86) |
| (0.77) |
| (0.09) |
| (0.06) |
| (0.15) |
| 11.39 |
|
2021 |
12.54 |
| 0.04 |
| (0.14) |
| (0.10) |
| (0.04) |
| (0.09) |
| (0.13) |
| 12.31 |
|
2020 |
12.32 |
| 0.12 |
| 0.23 |
| 0.35 |
| (0.13) |
| – |
| (0.13) |
| 12.54 |
|
2019 |
12.01 |
| 0.20 |
| 0.31 |
| 0.51 |
| (0.20) |
| – |
| (0.20) |
| 12.32 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
11.40 |
| 0.29 |
| 0.17 |
| 0.46 |
| (0.29) |
| – |
| (0.29) |
| 11.57 |
|
2022 |
12.32 |
| 0.12 |
| (0.86) |
| (0.74) |
| (0.12) |
| (0.06) |
| (0.18) |
| 11.40 |
|
2021 |
12.54 |
| 0.07 |
| (0.12) |
| (0.05) |
| (0.08) |
| (0.09) |
| (0.17) |
| 12.32 |
|
2020 |
12.32 |
| 0.16 |
| 0.22 |
| 0.38 |
| (0.16) |
| – |
| (0.16) |
| 12.54 |
|
2019 |
12.01 |
| 0.23 |
| 0.32 |
| 0.55 |
| (0.24) |
| – |
| (0.24) |
| 12.32 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
11.39 |
| 0.31 |
| 0.18 |
| 0.49 |
| (0.31) |
| – |
| (0.31) |
| 11.57 |
|
2022 |
12.31 |
| 0.15 |
| (0.87) |
| (0.72) |
| (0.14) |
| (0.06) |
| (0.20) |
| 11.39 |
|
2021 |
12.53 |
| 0.09 |
| (0.12) |
| (0.03) |
| (0.10) |
| (0.09) |
| (0.19) |
| 12.31 |
|
2020 |
12.31 |
| 0.18 |
| 0.23 |
| 0.41 |
| (0.19) |
| – |
| (0.19) |
| 12.53 |
|
2019 |
12.00 |
| 0.26 |
| 0.31 |
| 0.57 |
| (0.26) |
| – |
| (0.26) |
| 12.31 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
11.40 |
| 0.32 |
| 0.19 |
| 0.51 |
| (0.33) |
| – |
| (0.33) |
| 11.58 |
|
2022 |
12.32 |
| 0.16 |
| (0.86) |
| (0.70) |
| (0.16) |
| (0.06) |
| (0.22) |
| 11.40 |
|
2021 |
12.54 |
| 0.11 |
| (0.13) |
| (0.02) |
| (0.11) |
| (0.09) |
| (0.20) |
| 12.32 |
|
2020 |
12.33 |
| 0.20 |
| 0.21 |
| 0.41 |
| (0.20) |
| – |
| (0.20) |
| 12.54 |
|
2019 |
12.01 |
| 0.27 |
| 0.32 |
| 0.59 |
| (0.27) |
| – |
| (0.27) |
| 12.33 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
| |
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
| |
|
|
|
|
| |
3.85 |
% |
$425 |
| 1.26 |
% |
| 2.16 |
% |
35.4 |
% |
(6.33) |
| 591 |
| 1.27 |
|
| 0.75 |
| 28.4 |
|
(0.86) |
| 532 |
| 1.29 |
|
| 0.28 |
| 52.4 |
|
2.83 |
| 998 |
| 1.29 |
| (b) |
0.94 |
| 76.0 |
|
4.26 |
| 429 |
| 1.29 |
| (b) |
1.62 |
| 52.4 |
|
|
|
|
|
| |
4.07 |
| 9,999 |
| 0.95 |
|
| 2.50 |
| 35.4 |
|
(6.03) |
| 9,841 |
| 0.96 |
|
| 1.02 |
| 28.4 |
|
(0.48) |
| 10,268 |
| 0.98 |
|
| 0.58 |
| 52.4 |
|
3.15 |
| 14,361 |
| 0.98 |
| (b) |
1.30 |
| 76.0 |
|
4.58 |
| 13,832 |
| 0.98 |
| (b) |
1.93 |
| 52.4 |
|
|
|
|
|
| |
4.36 |
| 11,321 |
| 0.76 |
| (b) |
2.69 |
| 35.4 |
|
(5.86) |
| 13,727 |
| 0.77 |
| (b) |
1.23 |
| 28.4 |
|
(0.29) |
| 14,111 |
| 0.79 |
| (b) |
0.76 |
| 52.4 |
|
3.35 |
| 6,435 |
| 0.79 |
| (b) |
1.45 |
| 76.0 |
|
4.78 |
| 3,816 |
| 0.79 |
| (b) |
2.12 |
| 52.4 |
|
|
|
|
|
| |
4.49 |
| 8,616 |
| 0.64 |
|
| 2.80 |
| 35.4 |
|
(5.74) |
| 9,125 |
| 0.65 |
|
| 1.31 |
| 28.4 |
|
(0.17) |
| 11,377 |
| 0.67 |
|
| 0.90 |
| 52.4 |
|
3.38 |
| 12,410 |
| 0.67 |
| (b) |
1.62 |
| 76.0 |
|
4.99 |
| 14,704 |
| 0.67 |
| (b) |
2.23 |
| 52.4 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
SMALLCAP
FUND |
|
|
|
|
|
|
| |
Class
A shares |
|
|
|
|
|
|
| |
2023 |
$22.97 |
| $0.02 |
| ($2.06) |
| ($2.04) |
| $– |
| $– |
| $– |
| $20.93 |
|
2022 |
30.71 |
| (0.02) |
| (5.59) |
| (5.61) |
| – |
| (2.13) |
| (2.13) |
| 22.97 |
|
2021 |
20.37 |
| (0.10) |
| 11.00 |
| 10.90 |
| – |
| (0.56) |
| (0.56) |
| 30.71 |
|
2020 |
20.79 |
| – |
| 0.79 |
| 0.79 |
| – |
| (1.21) |
| (1.21) |
| 20.37 |
|
2019 |
22.60 |
| 0.01 |
| 1.09 |
| 1.10 |
| (0.01) |
| (2.90) |
| (2.91) |
| 20.79 |
|
Class
J shares |
|
|
|
|
|
|
| |
2023 |
21.72 |
| 0.05 |
| (1.95) |
| (1.90) |
| (0.02) |
| – |
| (0.02) |
| 19.80 |
|
2022 |
29.11 |
| 0.02 |
| (5.28) |
| (5.26) |
| – |
| (2.13) |
| (2.13) |
| 21.72 |
|
2021 |
19.30 |
| (0.05) |
| 10.42 |
| 10.37 |
| – |
| (0.56) |
| (0.56) |
| 29.11 |
|
2020 |
19.77 |
| 0.02 |
| 0.76 |
| 0.78 |
| (0.04) |
| (1.21) |
| (1.25) |
| 19.30 |
|
2019 |
21.67 |
| 0.04 |
| 1.01 |
| 1.05 |
| (0.05) |
| (2.90) |
| (2.95) |
| 19.77 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
25.39 |
| 0.11 |
| (2.29) |
| (2.18) |
| (0.05) |
| – |
| (0.05) |
| 23.16 |
|
2022 |
33.60 |
| 0.06 |
| (6.14) |
| (6.08) |
| – |
| (2.13) |
| (2.13) |
| 25.39 |
|
2021 |
22.21 |
| (0.03) |
| 12.01 |
| 11.98 |
| – |
| (0.59) |
| (0.59) |
| 33.60 |
|
2020 |
22.56 |
| 0.06 |
| 0.88 |
| 0.94 |
| (0.08) |
| (1.21) |
| (1.29) |
| 22.21 |
|
2019 |
24.26 |
| 0.09 |
| 1.20 |
| 1.29 |
| (0.09) |
| (2.90) |
| (2.99) |
| 22.56 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
20.97 |
| (0.08) |
| (1.86) |
| (1.94) |
| – |
| – |
| – |
| 19.03 |
|
2022 |
28.35 |
| (0.12) |
| (5.13) |
| (5.25) |
| – |
| (2.13) |
| (2.13) |
| 20.97 |
|
2021 |
18.94 |
| (0.22) |
| 10.19 |
| 9.97 |
| – |
| (0.56) |
| (0.56) |
| 28.35 |
|
2020 |
19.49 |
| (0.09) |
| 0.75 |
| 0.66 |
| – |
| (1.21) |
| (1.21) |
| 18.94 |
|
2019 |
21.46 |
| (0.07) |
| 1.00 |
| 0.93 |
| – |
| (2.90) |
| (2.90) |
| 19.49 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Gross Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
(8.88) |
% |
(b) |
$230,211 |
| 1.19 |
% |
| – |
% |
| 0.08 |
% |
28.7 |
% |
(19.05) |
| (b) |
253,893 |
| 1.14 |
|
| – |
|
| (0.07) |
| 18.7 |
|
54.21 |
| (b) |
348,066 |
| 1.12 |
|
| – |
|
| (0.35) |
| 38.0 |
|
3.71 |
| (b) |
202,896 |
| 1.18 |
|
| – |
|
| (0.03) |
| 41.6 |
|
7.38 |
| (b) |
218,037 |
| 1.22 |
|
| – |
|
| 0.04 |
| 40.0 |
|
|
|
|
|
|
|
|
| |
(8.75) |
| (b) |
165,565 |
| 1.02 |
| (c) |
1.04 |
| (d) |
0.24 |
| 28.7 |
|
(18.88) |
| (b) |
193,888 |
| 0.99 |
| (c) |
1.01 |
| (d) |
0.08 |
| 18.7 |
|
54.39 |
| (b),(e) |
259,335 |
| 0.98 |
| (c) |
1.00 |
| (d) |
(0.20) |
| 38.0 |
|
3.88 |
| (b),(e) |
175,489 |
| 1.03 |
| (c) |
1.06 |
| (d) |
0.12 |
| 41.6 |
|
7.50 |
| (b) |
189,772 |
| 1.06 |
| (c) |
1.09 |
| (d) |
0.20 |
| 40.0 |
|
|
|
|
|
|
|
|
| |
(8.61) |
|
| 378,571 |
| 0.85 |
| (f) |
– |
|
| 0.42 |
| 28.7 |
|
(18.79) |
|
| 411,643 |
| 0.85 |
| (f) |
– |
|
| 0.21 |
| 18.7 |
|
54.64 |
|
| 577,259 |
| 0.85 |
| (f) |
– |
|
| (0.09) |
| 38.0 |
|
4.07 |
|
| 147,591 |
| 0.85 |
| (f) |
– |
|
| 0.28 |
| 41.6 |
|
7.72 |
| (e) |
107,829 |
| 0.85 |
| (f) |
– |
|
| 0.41 |
| 40.0 |
|
|
|
|
|
|
|
|
| |
(9.25) |
|
| 1,111 |
| 1.62 |
|
| – |
|
| (0.36) |
| 28.7 |
|
(19.42) |
| (e) |
1,948 |
| 1.62 |
|
| – |
|
| (0.56) |
| 18.7 |
|
53.43 |
| (e) |
2,847 |
| 1.62 |
|
| – |
|
| (0.84) |
| 38.0 |
|
3.24 |
|
| 1,825 |
| 1.63 |
|
| – |
|
| (0.48) |
| 41.6 |
|
6.91 |
|
| 2,407 |
| 1.63 |
|
| – |
|
| (0.37) |
| 40.0 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(d)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(e)Total
return is calculated using the traded net asset value which may differ from the
reported net asset value. The traded net asset value is the net asset value
which a shareholder would have paid or received from a subscription or
redemption.
(f)Reflects
Manager's
contractual
expense
limit.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
SMALLCAP
FUND |
|
|
|
|
|
|
| |
R-3
shares |
|
|
|
|
|
|
| |
2023 |
$22.78 |
| ($0.01) |
| ($2.05) |
| ($2.06) |
| $– |
| $– |
| $– |
| $20.72 |
|
2022 |
30.51 |
| (0.06) |
| (5.54) |
| (5.60) |
| – |
| (2.13) |
| (2.13) |
| 22.78 |
|
2021 |
20.28 |
| (0.15) |
| 10.94 |
| 10.79 |
| – |
| (0.56) |
| (0.56) |
| 30.51 |
|
2020 |
20.72 |
| (0.03) |
| 0.80 |
| 0.77 |
| – |
| (1.21) |
| (1.21) |
| 20.28 |
|
2019 |
22.55 |
| (0.01) |
| 1.08 |
| 1.07 |
| – |
| (2.90) |
| (2.90) |
| 20.72 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
24.15 |
| 0.04 |
| (2.17) |
| (2.13) |
| – |
| – |
| – |
| 22.02 |
|
2022 |
32.15 |
| (0.01) |
| (5.86) |
| (5.87) |
| – |
| (2.13) |
| (2.13) |
| 24.15 |
|
2021 |
21.30 |
| (0.10) |
| 11.51 |
| 11.41 |
| – |
| (0.56) |
| (0.56) |
| 32.15 |
|
2020 |
21.69 |
| – |
| 0.84 |
| 0.84 |
| (0.02) |
| (1.21) |
| (1.23) |
| 21.30 |
|
2019 |
23.46 |
| 0.03 |
| 1.14 |
| 1.17 |
| (0.04) |
| (2.90) |
| (2.94) |
| 21.69 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
24.98 |
| 0.07 |
| (2.25) |
| (2.18) |
| (0.01) |
| – |
| (0.01) |
| 22.79 |
|
2022 |
33.14 |
| 0.02 |
| (6.05) |
| (6.03) |
| – |
| (2.13) |
| (2.13) |
| 24.98 |
|
2021 |
21.91 |
| (0.07) |
| 11.86 |
| 11.79 |
| – |
| (0.56) |
| (0.56) |
| 33.14 |
|
2020 |
22.28 |
| 0.03 |
| 0.86 |
| 0.89 |
| (0.05) |
| (1.21) |
| (1.26) |
| 21.91 |
|
2019 |
24.00 |
| 0.06 |
| 1.17 |
| 1.23 |
| (0.05) |
| (2.90) |
| (2.95) |
| 22.28 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
25.42 |
| 0.13 |
| (2.28) |
| (2.15) |
| (0.08) |
| – |
| (0.08) |
| 23.19 |
|
2022 |
33.61 |
| 0.08 |
| (6.14) |
| (6.06) |
| – |
| (2.13) |
| (2.13) |
| 25.42 |
|
2021 |
22.21 |
| – |
| 12.01 |
| 12.01 |
| – |
| (0.61) |
| (0.61) |
| 33.61 |
|
2020 |
22.56 |
| 0.08 |
| 0.88 |
| 0.96 |
| (0.10) |
| (1.21) |
| (1.31) |
| 22.21 |
|
2019 |
24.25 |
| 0.11 |
| 1.20 |
| 1.31 |
| (0.10) |
| (2.90) |
| (3.00) |
| 22.56 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
| |
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
| |
|
|
|
|
|
| |
(9.04) |
% |
| $14,313 |
| 1.31 |
% |
| (0.05) |
% |
28.7 |
% |
(19.15) |
|
| 14,119 |
| 1.31 |
|
| (0.24) |
| 18.7 |
|
53.90 |
|
| 15,267 |
| 1.31 |
|
| (0.54) |
| 38.0 |
|
3.60 |
|
| 7,119 |
| 1.32 |
|
| (0.17) |
| 41.6 |
|
7.23 |
|
| 9,247 |
| 1.32 |
|
| (0.06) |
| 40.0 |
|
|
|
|
|
|
| |
(8.82) |
|
| 32,239 |
| 1.12 |
|
| 0.14 |
| 28.7 |
|
(19.00) |
|
| 40,043 |
| 1.12 |
|
| (0.06) |
| 18.7 |
|
54.23 |
|
| 50,467 |
| 1.12 |
|
| (0.35) |
| 38.0 |
|
3.78 |
|
| 28,740 |
| 1.13 |
|
| 0.01 |
| 41.6 |
|
7.42 |
|
| 25,604 |
| 1.13 |
|
| 0.12 |
| 40.0 |
|
|
|
|
|
|
| |
(8.72) |
|
| 38,705 |
| 1.00 |
|
| 0.26 |
| 28.7 |
|
(18.91) |
|
| 50,244 |
| 1.00 |
|
| 0.09 |
| 18.7 |
|
54.46 |
|
| 44,522 |
| 1.00 |
|
| (0.23) |
| 38.0 |
|
3.88 |
|
| 26,842 |
| 1.01 |
|
| 0.13 |
| 41.6 |
|
7.55 |
|
| 23,288 |
| 1.01 |
|
| 0.26 |
| 40.0 |
|
|
|
|
|
|
| |
(8.49) |
|
| 200,915 |
| 0.76 |
| (b) |
0.51 |
| 28.7 |
|
(18.72) |
|
| 221,952 |
| 0.75 |
| (b) |
0.32 |
| 18.7 |
|
54.76 |
|
| 169,609 |
| 0.75 |
| (b) |
0.01 |
| 38.0 |
|
4.14 |
|
| 75,621 |
| 0.77 |
| (b) |
0.37 |
| 41.6 |
|
7.82 |
| (c) |
62,428 |
| 0.77 |
| (b) |
0.49 |
| 40.0 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Reflects
Manager's
contractual
expense
limit.
(c)Total
return is calculated using the traded net asset value which may differ from the
reported net asset value. The traded net asset value is the net asset value
which a shareholder would have paid or received from a subscription or
redemption.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
SMALLCAP
GROWTH FUND I |
|
|
|
|
|
| |
Class
J shares |
|
|
|
|
|
| |
2023 |
$7.47 |
| ($0.04) |
| ($0.44) |
| ($0.48) |
| ($0.10) |
| ($0.10) |
| $6.89 |
|
2022 |
13.34 |
| (0.06) |
| (3.36) |
| (3.42) |
| (2.45) |
| (2.45) |
| 7.47 |
|
2021 |
10.37 |
| (0.09) |
| 3.94 |
| 3.85 |
| (0.88) |
| (0.88) |
| 13.34 |
|
2020 |
9.29 |
| (0.07) |
| 2.16 |
| 2.09 |
| (1.01) |
| (1.01) |
| 10.37 |
|
2019 |
10.56 |
| (0.07) |
| 0.69 |
| 0.62 |
| (1.89) |
| (1.89) |
| 9.29 |
|
Institutional
shares |
|
|
|
|
|
| |
2023 |
12.54 |
| (0.04) |
| (0.74) |
| (0.78) |
| (0.10) |
| (0.10) |
| 11.66 |
|
2022 |
20.54 |
| (0.07) |
| (5.48) |
| (5.55) |
| (2.45) |
| (2.45) |
| 12.54 |
|
2021 |
15.56 |
| (0.12) |
| 5.98 |
| 5.86 |
| (0.88) |
| (0.88) |
| 20.54 |
|
2020 |
13.45 |
| (0.08) |
| 3.20 |
| 3.12 |
| (1.01) |
| (1.01) |
| 15.56 |
|
2019 |
14.29 |
| (0.07) |
| 1.12 |
| 1.05 |
| (1.89) |
| (1.89) |
| 13.45 |
|
R-1
shares |
|
|
|
|
|
| |
2023 |
8.61 |
| (0.09) |
| (0.50) |
| (0.59) |
| (0.10) |
| (0.10) |
| 7.92 |
|
2022 |
15.05 |
| (0.12) |
| (3.87) |
| (3.99) |
| (2.45) |
| (2.45) |
| 8.61 |
|
2021 |
11.67 |
| (0.19) |
| 4.45 |
| 4.26 |
| (0.88) |
| (0.88) |
| 15.05 |
|
2020 |
10.40 |
| (0.14) |
| 2.42 |
| 2.28 |
| (1.01) |
| (1.01) |
| 11.67 |
|
2019 |
11.62 |
| (0.14) |
| 0.81 |
| 0.67 |
| (1.89) |
| (1.89) |
| 10.40 |
|
R-3
shares |
|
|
|
|
|
| |
2023 |
9.28 |
| (0.07) |
| (0.55) |
| (0.62) |
| (0.10) |
| (0.10) |
| 8.56 |
|
2022 |
15.96 |
| (0.10) |
| (4.13) |
| (4.23) |
| (2.45) |
| (2.45) |
| 9.28 |
|
2021 |
12.30 |
| (0.16) |
| 4.70 |
| 4.54 |
| (0.88) |
| (0.88) |
| 15.96 |
|
2020 |
10.87 |
| (0.11) |
| 2.55 |
| 2.44 |
| (1.01) |
| (1.01) |
| 12.30 |
|
2019 |
12.02 |
| (0.11) |
| 0.85 |
| 0.74 |
| (1.89) |
| (1.89) |
| 10.87 |
|
R-4
shares |
|
|
|
|
|
| |
2023 |
10.38 |
| (0.06) |
| (0.61) |
| (0.67) |
| (0.10) |
| (0.10) |
| 9.61 |
|
2022 |
17.51 |
| (0.09) |
| (4.59) |
| (4.68) |
| (2.45) |
| (2.45) |
| 10.38 |
|
2021 |
13.40 |
| (0.14) |
| 5.13 |
| 4.99 |
| (0.88) |
| (0.88) |
| 17.51 |
|
2020 |
11.74 |
| (0.10) |
| 2.77 |
| 2.67 |
| (1.01) |
| (1.01) |
| 13.40 |
|
2019 |
12.79 |
| (0.10) |
| 0.94 |
| 0.84 |
| (1.89) |
| (1.89) |
| 11.74 |
|
R-5
shares |
|
|
|
|
|
| |
2023 |
11.24 |
| (0.05) |
| (0.66) |
| (0.71) |
| (0.10) |
| (0.10) |
| 10.43 |
|
2022 |
18.71 |
| (0.08) |
| (4.94) |
| (5.02) |
| (2.45) |
| (2.45) |
| 11.24 |
|
2021 |
14.25 |
| (0.13) |
| 5.47 |
| 5.34 |
| (0.88) |
| (0.88) |
| 18.71 |
|
2020 |
12.42 |
| (0.09) |
| 2.93 |
| 2.84 |
| (1.01) |
| (1.01) |
| 14.25 |
|
2019 |
13.39 |
| (0.09) |
| 1.01 |
| 0.92 |
| (1.89) |
| (1.89) |
| 12.42 |
|
R-6
shares |
|
|
|
|
|
| |
2023 |
12.57 |
| (0.02) |
| (0.75) |
| (0.77) |
| (0.10) |
| (0.10) |
| 11.70 |
|
2022 |
20.56 |
| (0.05) |
| (5.49) |
| (5.54) |
| (2.45) |
| (2.45) |
| 12.57 |
|
2021 |
15.55 |
| (0.10) |
| 5.99 |
| 5.89 |
| (0.88) |
| (0.88) |
| 20.56 |
|
2020 |
13.43 |
| (0.06) |
| 3.19 |
| 3.13 |
| (1.01) |
| (1.01) |
| 15.55 |
|
2019 |
14.27 |
| (0.06) |
| 1.11 |
| 1.05 |
| (1.89) |
| (1.89) |
| 13.43 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Gross Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
(6.47) |
% |
(b) |
$56,943 |
| 1.14 |
% |
(c) |
1.18 |
% |
(d) |
(0.49) |
% |
50.3 |
% |
(29.78) |
| (b) |
63,827 |
| 1.11 |
| (c) |
1.15 |
| (d) |
(0.64) |
| 50.7 |
|
38.18 |
| (b) |
103,343 |
| 1.07 |
| (c) |
1.11 |
| (d) |
(0.74) |
| 62.1 |
|
24.24 |
| (b) |
78,084 |
| 1.16 |
| (c) |
1.22 |
| (d) |
(0.75) |
| 67.6 |
|
10.17 |
| (b) |
69,567 |
| 1.33 |
| (c) |
1.45 |
| (d) |
(0.81) |
| 57.4 |
|
|
|
|
|
|
|
|
| |
(6.25) |
|
| 133,979 |
| 0.97 |
| (e) |
– |
|
| (0.32) |
| 50.3 |
|
(29.74) |
| (f) |
195,117 |
| 0.94 |
| (e) |
– |
|
| (0.47) |
| 50.7 |
|
38.44 |
| (f) |
300,718 |
| 0.93 |
| (e) |
– |
|
| (0.60) |
| 62.1 |
|
24.51 |
| (f) |
222,802 |
| 0.97 |
| (e) |
– |
|
| (0.57) |
| 67.6 |
|
10.50 |
| (f) |
148,229 |
| 1.02 |
| (e) |
– |
|
| (0.50) |
| 57.4 |
|
|
|
|
|
|
|
|
| |
(6.90) |
|
| 1,254 |
| 1.72 |
| (e) |
– |
|
| (1.06) |
| 50.3 |
|
(30.30) |
| (f) |
1,688 |
| 1.71 |
| (e) |
– |
|
| (1.25) |
| 50.7 |
|
37.37 |
| (f) |
2,523 |
| 1.71 |
| (e) |
– |
|
| (1.38) |
| 62.1 |
|
23.53 |
| (f) |
1,980 |
| 1.75 |
| (e) |
– |
|
| (1.34) |
| 67.6 |
|
9.59 |
|
| 1,757 |
| 1.87 |
| (e) |
– |
|
| (1.35) |
| 57.4 |
|
|
|
|
|
|
|
|
| |
(6.62) |
| (f) |
11,855 |
| 1.41 |
| (e) |
– |
|
| (0.75) |
| 50.3 |
|
(30.07) |
| (f) |
13,703 |
| 1.40 |
| (e) |
– |
|
| (0.94) |
| 50.7 |
|
37.78 |
|
| 18,489 |
| 1.40 |
| (e) |
– |
|
| (1.07) |
| 62.1 |
|
23.92 |
|
| 13,013 |
| 1.44 |
| (e) |
– |
|
| (1.03) |
| 67.6 |
|
9.90 |
|
| 13,075 |
| 1.56 |
| (e) |
– |
|
| (1.04) |
| 57.4 |
|
|
|
|
|
|
|
|
| |
(6.49) |
|
| 8,538 |
| 1.22 |
| (e) |
– |
|
| (0.56) |
| 50.3 |
|
(29.95) |
| (f) |
9,817 |
| 1.21 |
| (e) |
– |
|
| (0.75) |
| 50.7 |
|
38.13 |
| (f) |
21,478 |
| 1.21 |
| (e) |
– |
|
| (0.88) |
| 62.1 |
|
24.12 |
|
| 15,438 |
| 1.25 |
| (e) |
– |
|
| (0.84) |
| 67.6 |
|
10.11 |
|
| 12,710 |
| 1.37 |
| (e) |
– |
|
| (0.85) |
| 57.4 |
|
|
|
|
|
|
|
|
| |
(6.34) |
|
| 20,970 |
| 1.10 |
| (e) |
– |
|
| (0.44) |
| 50.3 |
|
(29.79) |
|
| 32,559 |
| 1.09 |
| (e) |
– |
|
| (0.63) |
| 50.7 |
|
38.24 |
|
| 50,285 |
| 1.09 |
| (e) |
– |
|
| (0.75) |
| 62.1 |
|
24.17 |
|
| 42,541 |
| 1.13 |
| (e) |
– |
|
| (0.72) |
| 67.6 |
|
10.29 |
|
| 37,322 |
| 1.25 |
| (e) |
– |
|
| (0.73) |
| 57.4 |
|
|
|
|
|
|
|
|
| |
(6.07) |
| (f) |
1,786,028 |
| 0.84 |
| (e) |
– |
|
| (0.19) |
| 50.3 |
|
(29.67) |
| (f) |
1,935,411 |
| 0.84 |
| (e) |
– |
|
| (0.37) |
| 50.7 |
|
38.60 |
|
| 2,780,704 |
| 0.83 |
| (e) |
– |
|
| (0.50) |
| 62.1 |
|
24.63 |
| (f) |
1,817,204 |
| 0.86 |
| (e) |
– |
|
| (0.46) |
| 67.6 |
|
10.52 |
| (f) |
1,497,648 |
| 0.99 |
| (e) |
– |
|
| (0.48) |
| 57.4 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(d)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(e)Reflects
Manager's
contractual
expense
limit.
(f)Total
return
is calculated using the traded net asset value which may differ from the
reported net asset value. The traded net asset value is the net asset value
which a shareholder would have paid or received from a subscription or
redemption.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
SMALLCAP
S&P 600 INDEX FUND |
|
|
|
|
|
| |
Class
J shares |
|
|
|
|
|
|
| |
2023 |
$24.87 |
| $0.31 |
| ($2.19) |
| ($1.88) |
| ($0.28) |
| ($2.33) |
| ($2.61) |
| $20.38 |
|
2022 |
31.18 |
| 0.27 |
| (3.84) |
| (3.57) |
| (0.25) |
| (2.49) |
| (2.74) |
| 24.87 |
|
2021 |
20.17 |
| 0.24 |
| 11.32 |
| 11.56 |
| (0.24) |
| (0.31) |
| (0.55) |
| 31.18 |
|
2020 |
23.55 |
| 0.21 |
| (1.85) |
| (1.64) |
| (0.26) |
| (1.48) |
| (1.74) |
| 20.17 |
|
2019 |
26.23 |
| 0.23 |
| 0.04 |
| 0.27 |
| (0.27) |
| (2.68) |
| (2.95) |
| 23.55 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
26.79 |
| 0.38 |
| (2.36) |
| (1.98) |
| (0.33) |
| (2.33) |
| (2.66) |
| 22.15 |
|
2022 |
33.36 |
| 0.34 |
| (4.12) |
| (3.78) |
| (0.30) |
| (2.49) |
| (2.79) |
| 26.79 |
|
2021 |
21.54 |
| 0.31 |
| 12.09 |
| 12.40 |
| (0.27) |
| (0.31) |
| (0.58) |
| 33.36 |
|
2020 |
25.03 |
| 0.27 |
| (1.98) |
| (1.71) |
| (0.30) |
| (1.48) |
| (1.78) |
| 21.54 |
|
2019 |
27.68 |
| 0.30 |
| 0.05 |
| 0.35 |
| (0.32) |
| (2.68) |
| (3.00) |
| 25.03 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
26.15 |
| 0.18 |
| (2.31) |
| (2.13) |
| (0.12) |
| (2.33) |
| (2.45) |
| 21.57 |
|
2022 |
32.59 |
| 0.10 |
| (4.03) |
| (3.93) |
| (0.02) |
| (2.49) |
| (2.51) |
| 26.15 |
|
2021 |
21.08 |
| 0.06 |
| 11.85 |
| 11.91 |
| (0.09) |
| (0.31) |
| (0.40) |
| 32.59 |
|
2020 |
24.50 |
| 0.09 |
| (1.95) |
| (1.86) |
| (0.08) |
| (1.48) |
| (1.56) |
| 21.08 |
|
2019 |
27.11 |
| 0.10 |
| 0.07 |
| 0.17 |
| (0.10) |
| (2.68) |
| (2.78) |
| 24.50 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
27.39 |
| 0.26 |
| (2.42) |
| (2.16) |
| (0.18) |
| (2.33) |
| (2.51) |
| 22.72 |
|
2022 |
34.04 |
| 0.20 |
| (4.22) |
| (4.02) |
| (0.14) |
| (2.49) |
| (2.63) |
| 27.39 |
|
2021 |
21.99 |
| 0.16 |
| 12.35 |
| 12.51 |
| (0.15) |
| (0.31) |
| (0.46) |
| 34.04 |
|
2020 |
25.52 |
| 0.16 |
| (2.02) |
| (1.86) |
| (0.19) |
| (1.48) |
| (1.67) |
| 21.99 |
|
2019 |
28.12 |
| 0.18 |
| 0.08 |
| 0.26 |
| (0.18) |
| (2.68) |
| (2.86) |
| 25.52 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
27.83 |
| 0.32 |
| (2.47) |
| (2.15) |
| (0.24) |
| (2.33) |
| (2.57) |
| 23.11 |
|
2022 |
34.52 |
| 0.25 |
| (4.27) |
| (4.02) |
| (0.18) |
| (2.49) |
| (2.67) |
| 27.83 |
|
2021 |
22.28 |
| 0.22 |
| 12.53 |
| 12.75 |
| (0.20) |
| (0.31) |
| (0.51) |
| 34.52 |
|
2020 |
25.84 |
| 0.21 |
| (2.07) |
| (1.86) |
| (0.22) |
| (1.48) |
| (1.70) |
| 22.28 |
|
2019 |
28.43 |
| 0.23 |
| 0.08 |
| 0.31 |
| (0.22) |
| (2.68) |
| (2.90) |
| 25.84 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
28.03 |
| 0.35 |
| (2.49) |
| (2.14) |
| (0.27) |
| (2.33) |
| (2.60) |
| 23.29 |
|
2022 |
34.76 |
| 0.29 |
| (4.30) |
| (4.01) |
| (0.23) |
| (2.49) |
| (2.72) |
| 28.03 |
|
2021 |
22.44 |
| 0.26 |
| 12.60 |
| 12.86 |
| (0.23) |
| (0.31) |
| (0.54) |
| 34.76 |
|
2020 |
26.00 |
| 0.23 |
| (2.06) |
| (1.83) |
| (0.25) |
| (1.48) |
| (1.73) |
| 22.44 |
|
2019 |
28.59 |
| 0.27 |
| 0.08 |
| 0.35 |
| (0.26) |
| (2.68) |
| (2.94) |
| 26.00 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
26.78 |
| 0.39 |
| (2.36) |
| (1.97) |
| (0.34) |
| (2.33) |
| (2.67) |
| 22.14 |
|
2022 |
33.35 |
| 0.35 |
| (4.11) |
| (3.76) |
| (0.32) |
| (2.49) |
| (2.81) |
| 26.78 |
|
2021 |
21.54 |
| 0.33 |
| 12.08 |
| 12.41 |
| (0.29) |
| (0.31) |
| (0.60) |
| 33.35 |
|
2020 |
25.03 |
| 0.27 |
| (1.96) |
| (1.69) |
| (0.32) |
| (1.48) |
| (1.80) |
| 21.54 |
|
2019 |
27.67 |
| 0.31 |
| 0.06 |
| 0.37 |
| (0.33) |
| (2.68) |
| (3.01) |
| 25.03 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Gross Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
| |
(8.04) |
% |
(b) |
$152,416 |
| 0.42 |
% |
(c) |
0.44 |
% |
(d) |
1.35 |
% |
27.5 |
% |
(12.25) |
| (b) |
175,397 |
| 0.40 |
| (c) |
0.42 |
| (d) |
1.01 |
| 15.9 |
|
57.97 |
| (b) |
209,971 |
| 0.39 |
| (c) |
0.41 |
| (d) |
0.83 |
| 11.9 |
|
(7.93) |
| (b) |
136,338 |
| 0.42 |
| (c) |
0.45 |
| (d) |
1.02 |
| 21.4 |
|
2.86 |
| (b) |
171,912 |
| 0.44 |
| (c) |
0.47 |
| (d) |
1.01 |
| 16.8 |
|
|
|
|
|
|
|
|
| |
(7.85) |
|
| 200,564 |
| 0.21 |
| (e) |
– |
|
| 1.56 |
| 27.5 |
|
(12.08) |
|
| 229,566 |
| 0.21 |
| (e) |
– |
|
| 1.19 |
| 15.9 |
|
58.26 |
|
| 291,508 |
| 0.21 |
| (e) |
– |
|
| 1.01 |
| 11.9 |
|
(7.75) |
|
| 218,125 |
| 0.24 |
| (e) |
– |
|
| 1.22 |
| 21.4 |
|
3.04 |
|
| 330,036 |
| 0.24 |
| (e) |
– |
|
| 1.21 |
| 16.8 |
|
|
|
|
|
|
|
|
| |
(8.61) |
|
| 5,454 |
| 1.04 |
|
| – |
|
| 0.73 |
| 27.5 |
|
(12.81) |
| (f) |
6,738 |
| 1.04 |
|
| – |
|
| 0.37 |
| 15.9 |
|
56.98 |
| (f) |
8,077 |
| 1.04 |
|
| – |
|
| 0.18 |
| 11.9 |
|
(8.48) |
|
| 6,987 |
| 1.04 |
|
| – |
|
| 0.42 |
| 21.4 |
|
2.24 |
|
| 10,201 |
| 1.04 |
|
| – |
|
| 0.41 |
| 16.8 |
|
|
|
|
|
|
|
|
| |
(8.33) |
|
| 64,740 |
| 0.73 |
|
| – |
|
| 1.04 |
| 27.5 |
|
(12.54) |
|
| 79,204 |
| 0.73 |
|
| – |
|
| 0.67 |
| 15.9 |
|
57.42 |
|
| 103,119 |
| 0.73 |
|
| – |
|
| 0.49 |
| 11.9 |
|
(8.19) |
|
| 71,759 |
| 0.73 |
|
| – |
|
| 0.72 |
| 21.4 |
|
2.55 |
|
| 101,745 |
| 0.73 |
|
| – |
|
| 0.73 |
| 16.8 |
|
|
|
|
|
|
|
|
| |
(8.17) |
|
| 24,254 |
| 0.54 |
|
| – |
|
| 1.23 |
| 27.5 |
|
(12.35) |
|
| 34,056 |
| 0.54 |
|
| – |
|
| 0.86 |
| 15.9 |
|
57.78 |
|
| 45,339 |
| 0.54 |
|
| – |
|
| 0.68 |
| 11.9 |
|
(8.07) |
|
| 39,413 |
| 0.54 |
|
| – |
|
| 0.92 |
| 21.4 |
|
2.75 |
|
| 57,686 |
| 0.54 |
|
| – |
|
| 0.92 |
| 16.8 |
|
|
|
|
|
|
|
|
| |
(8.07) |
|
| 80,736 |
| 0.42 |
|
| – |
|
| 1.35 |
| 27.5 |
|
(12.25) |
|
| 103,304 |
| 0.42 |
|
| – |
|
| 0.99 |
| 15.9 |
|
57.89 |
|
| 128,741 |
| 0.42 |
|
| – |
|
| 0.80 |
| 11.9 |
|
(7.91) |
|
| 92,028 |
| 0.42 |
|
| – |
|
| 1.04 |
| 21.4 |
|
2.89 |
|
| 132,921 |
| 0.42 |
|
| – |
|
| 1.04 |
| 16.8 |
|
|
|
|
|
|
|
|
| |
(7.80) |
|
| 514,879 |
| 0.17 |
|
| – |
|
| 1.60 |
| 27.5 |
|
(12.04) |
|
| 533,682 |
| 0.16 |
| (e) |
– |
|
| 1.24 |
| 15.9 |
|
58.33 |
|
| 646,055 |
| 0.16 |
| (e) |
– |
|
| 1.06 |
| 11.9 |
|
(7.67) |
|
| 459,359 |
| 0.16 |
| (e) |
– |
|
| 1.28 |
| 21.4 |
|
3.14 |
|
| 464,412 |
| 0.17 |
| (e) |
– |
|
| 1.28 |
| 16.8 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(d)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
(e)Reflects
Manager's
contractual
expense
limit.
(f)Total
return is calculated using
the traded net asset value which may differ from the reported net asset value.
The traded net asset value is the net asset value which a shareholder would have
paid or received from a subscription or redemption.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
|
|
|
|
|
|
|
| |
| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Distributions
from Realized Gains |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
SMALLCAP
VALUE FUND II |
|
|
|
|
|
|
| |
Class
J shares |
|
|
|
|
|
|
| |
2023 |
$11.41 |
| $0.09 |
| ($0.42) |
| ($0.33) |
| ($0.06) |
| ($1.14) |
| ($1.20) |
| $9.88 |
|
2022 |
14.02 |
| 0.05 |
| (0.75) |
| (0.70) |
| (0.06) |
| (1.85) |
| (1.91) |
| 11.41 |
|
2021 |
8.63 |
| 0.04 |
| 5.39 |
| 5.43 |
| (0.04) |
| – |
| (0.04) |
| 14.02 |
|
2020 |
10.19 |
| 0.04 |
| (1.55) |
| (1.51) |
| (0.05) |
| – |
| (0.05) |
| 8.63 |
|
2019 |
11.78 |
| 0.05 |
| 0.19 |
| 0.24 |
| (0.05) |
| (1.78) |
| (1.83) |
| 10.19 |
|
Institutional
shares |
|
|
|
|
|
|
| |
2023 |
11.88 |
| 0.13 |
| (0.44) |
| (0.31) |
| (0.09) |
| (1.14) |
| (1.23) |
| 10.34 |
|
2022 |
14.50 |
| 0.09 |
| (0.77) |
| (0.68) |
| (0.09) |
| (1.85) |
| (1.94) |
| 11.88 |
|
2021 |
8.94 |
| 0.09 |
| 5.56 |
| 5.65 |
| (0.09) |
| – |
| (0.09) |
| 14.50 |
|
2020 |
10.55 |
| 0.08 |
| (1.59) |
| (1.51) |
| (0.10) |
| – |
| (0.10) |
| 8.94 |
|
2019 |
12.12 |
| 0.10 |
| 0.20 |
| 0.30 |
| (0.09) |
| (1.78) |
| (1.87) |
| 10.55 |
|
R-1
shares |
|
|
|
|
|
|
| |
2023 |
10.25 |
| 0.03 |
| (0.37) |
| (0.34) |
| (0.02) |
| (1.14) |
| (1.16) |
| 8.75 |
|
2022 |
12.79 |
| (0.01) |
| (0.68) |
| (0.69) |
| – |
| (1.85) |
| (1.85) |
| 10.25 |
|
2021 |
7.90 |
| (0.02) |
| 4.92 |
| 4.90 |
| (0.01) |
| – |
| (0.01) |
| 12.79 |
|
2020 |
9.32 |
| 0.01 |
| (1.43) |
| (1.42) |
| – |
| – |
| – |
| 7.90 |
|
2019 |
10.93 |
| 0.01 |
| 0.16 |
| 0.17 |
| – |
| (1.78) |
| (1.78) |
| 9.32 |
|
R-3
shares |
|
|
|
|
|
|
| |
2023 |
11.17 |
| 0.07 |
| (0.41) |
| (0.34) |
| (0.04) |
| (1.14) |
| (1.18) |
| 9.65 |
|
2022 |
13.76 |
| 0.02 |
| (0.73) |
| (0.71) |
| (0.03) |
| (1.85) |
| (1.88) |
| 11.17 |
|
2021 |
8.48 |
| 0.02 |
| 5.29 |
| 5.31 |
| (0.03) |
| – |
| (0.03) |
| 13.76 |
|
2020 |
10.01 |
| 0.03 |
| (1.52) |
| (1.49) |
| (0.04) |
| – |
| (0.04) |
| 8.48 |
|
2019 |
11.59 |
| 0.04 |
| 0.18 |
| 0.22 |
| (0.02) |
| (1.78) |
| (1.80) |
| 10.01 |
|
R-4
shares |
|
|
|
|
|
|
| |
2023 |
11.41 |
| 0.09 |
| (0.42) |
| (0.33) |
| (0.05) |
| (1.14) |
| (1.19) |
| 9.89 |
|
2022 |
14.02 |
| 0.05 |
| (0.76) |
| (0.71) |
| (0.05) |
| (1.85) |
| (1.90) |
| 11.41 |
|
2021 |
8.63 |
| 0.05 |
| 5.39 |
| 5.44 |
| (0.05) |
| – |
| (0.05) |
| 14.02 |
|
2020 |
10.19 |
| 0.05 |
| (1.55) |
| (1.50) |
| (0.06) |
| – |
| (0.06) |
| 8.63 |
|
2019 |
11.77 |
| 0.06 |
| 0.18 |
| 0.24 |
| (0.04) |
| (1.78) |
| (1.82) |
| 10.19 |
|
R-5
shares |
|
|
|
|
|
|
| |
2023 |
11.59 |
| 0.10 |
| (0.42) |
| (0.32) |
| (0.07) |
| (1.14) |
| (1.21) |
| 10.06 |
|
2022 |
14.20 |
| 0.06 |
| (0.75) |
| (0.69) |
| (0.07) |
| (1.85) |
| (1.92) |
| 11.59 |
|
2021 |
8.75 |
| 0.06 |
| 5.45 |
| 5.51 |
| (0.06) |
| – |
| (0.06) |
| 14.20 |
|
2020 |
10.33 |
| 0.06 |
| (1.57) |
| (1.51) |
| (0.07) |
| – |
| (0.07) |
| 8.75 |
|
2019 |
11.91 |
| 0.07 |
| 0.19 |
| 0.26 |
| (0.06) |
| (1.78) |
| (1.84) |
| 10.33 |
|
R-6
shares |
|
|
|
|
|
|
| |
2023 |
11.87 |
| 0.13 |
| (0.43) |
| (0.30) |
| (0.10) |
| (1.14) |
| (1.24) |
| 10.33 |
|
2022 |
14.50 |
| 0.09 |
| (0.77) |
| (0.68) |
| (0.10) |
| (1.85) |
| (1.95) |
| 11.87 |
|
2021 |
8.93 |
| 0.10 |
| 5.56 |
| 5.66 |
| (0.09) |
| – |
| (0.09) |
| 14.50 |
|
2020 |
10.54 |
| 0.09 |
| (1.60) |
| (1.51) |
| (0.10) |
| – |
| (0.10) |
| 8.93 |
|
2019 |
12.12 |
| 0.10 |
| 0.19 |
| 0.29 |
| (0.09) |
| (1.78) |
| (1.87) |
| 10.54 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
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Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Gross Expenses to Average Net Assets |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
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(2.93) |
% |
(b) |
$19,813 |
| 1.31 |
% |
(c) |
1.35 |
% |
(d) |
0.81 |
% |
65.2 |
% |
(5.41) |
| (b) |
20,790 |
| 1.28 |
| (c) |
1.32 |
| (d) |
0.40 |
| 55.4 |
|
63.03 |
| (b) |
23,564 |
| 1.29 |
| (c) |
1.33 |
| (d) |
0.35 |
| 87.5 |
|
(14.92) |
| (b) |
11,752 |
| 1.48 |
| (c) |
1.54 |
| (d) |
0.42 |
| 92.2 |
|
4.60 |
| (b) |
16,348 |
| 1.45 |
| (c) |
1.52 |
| (d) |
0.46 |
| 76.1 |
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(2.58) |
|
| 193,833 |
| 0.96 |
| (e) |
– |
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| 1.18 |
| 65.2 |
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(5.02) |
|
| 185,308 |
| 0.96 |
| (e) |
– |
|
| 0.73 |
| 55.4 |
|
63.45 |
|
| 204,526 |
| 0.96 |
| (e) |
– |
|
| 0.70 |
| 87.5 |
|
(14.51) |
|
| 103,672 |
| 0.98 |
| (e) |
– |
|
| 0.90 |
| 92.2 |
|
5.09 |
|
| 116,450 |
| 0.99 |
| (e) |
– |
|
| 0.92 |
| 76.1 |
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(3.40) |
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| 642 |
| 1.81 |
| (e) |
– |
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| 0.32 |
| 65.2 |
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(5.84) |
|
| 772 |
| 1.80 |
| (e) |
– |
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| (0.13) |
| 55.4 |
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62.06 |
|
| 741 |
| 1.80 |
| (e) |
– |
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| (0.13) |
| 87.5 |
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(15.21) |
|
| 583 |
| 1.84 |
| (e) |
– |
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| 0.06 |
| 92.2 |
|
4.21 |
|
| 871 |
| 1.84 |
| (e) |
– |
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| 0.07 |
| 76.1 |
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(3.12) |
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| 4,937 |
| 1.50 |
| (e) |
– |
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| 0.63 |
| 65.2 |
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(5.59) |
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| 5,063 |
| 1.49 |
| (e) |
– |
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| 0.19 |
| 55.4 |
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62.67 |
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| 6,089 |
| 1.49 |
| (e) |
– |
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| 0.14 |
| 87.5 |
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(14.99) |
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| 3,599 |
| 1.53 |
| (e) |
– |
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| 0.39 |
| 92.2 |
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4.51 |
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| 6,798 |
| 1.53 |
| (e) |
– |
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| 0.39 |
| 76.1 |
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(2.87) |
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| 2,741 |
| 1.31 |
| (e) |
– |
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| 0.81 |
| 65.2 |
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(5.45) |
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| 2,703 |
| 1.30 |
| (e) |
– |
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| 0.39 |
| 55.4 |
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63.15 |
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| 4,153 |
| 1.30 |
| (e) |
– |
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| 0.37 |
| 87.5 |
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(14.84) |
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| 2,278 |
| 1.34 |
| (e) |
– |
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| 0.59 |
| 92.2 |
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4.67 |
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| 4,746 |
| 1.34 |
| (e) |
– |
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| 0.57 |
| 76.1 |
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(2.82) |
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| 10,587 |
| 1.19 |
| (e) |
– |
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| 0.94 |
| 65.2 |
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(5.28) |
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| 13,339 |
| 1.18 |
| (e) |
– |
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| 0.51 |
| 55.4 |
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63.22 |
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| 16,754 |
| 1.18 |
| (e) |
– |
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| 0.49 |
| 87.5 |
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(14.74) |
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| 14,788 |
| 1.22 |
| (e) |
– |
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| 0.69 |
| 92.2 |
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4.80 |
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| 19,469 |
| 1.22 |
| (e) |
– |
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| 0.70 |
| 76.1 |
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(2.55) |
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| 935,878 |
| 0.93 |
| (e) |
– |
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| 1.19 |
| 65.2 |
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(5.07) |
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| 895,326 |
| 0.93 |
| (e) |
– |
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| 0.76 |
| 55.4 |
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63.66 |
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| 1,150,438 |
| 0.93 |
| (e) |
– |
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| 0.72 |
| 87.5 |
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(14.51) |
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| 663,938 |
| 0.96 |
| (e) |
– |
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| 0.94 |
| 92.2 |
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5.05 |
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| 840,894 |
| 0.97 |
| (e) |
– |
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| 0.94 |
| 76.1 |
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(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Total
return is calculated using the traded net asset value which may differ from the
reported net asset value. The traded net asset value is the net asset value
which a shareholder would have paid or received from a subscription or
redemption.
(d)Reflects
Manager's
contractual
expense
limit.
(e)Reflects
Manager's
contractual
expense
limit
and/or
Distributor's
voluntary
distribution
fee
limit.
(f)Excludes
expense
reimbursement
from
Manager
and/or
Distributor.
FINANCIAL
HIGHLIGHTS
PRINCIPAL
FUNDS,
INC.
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Selected
data for a share of Capital Stock outstanding throughout each year ended
October 31 (except as noted): |
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| Net
Asset Value, Beginning of Period |
Net
Investment Income (Loss)(a) |
Net
Realized and Unrealized Gain (Loss) on Investments |
Total
From Investment Operations |
Dividends
from Net Investment Income |
Total
Dividends and Distributions |
Net
Asset Value, End of Period |
TAX-EXEMPT
BOND FUND |
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Class
A shares |
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2023 |
$6.31 |
| $0.21 |
| $0.03 |
| $0.24 |
| ($0.21) |
| ($0.21) |
| $6.34 |
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2022 |
7.61 |
| 0.17 |
| (1.30) |
| (1.13) |
| (0.17) |
| (0.17) |
| 6.31 |
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2021 |
7.40 |
| 0.17 |
| 0.21 |
| 0.38 |
| (0.17) |
| (0.17) |
| 7.61 |
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2020 |
7.43 |
| 0.18 |
| (0.04) |
| 0.14 |
| (0.17) |
| (0.17) |
| 7.40 |
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2019 |
6.95 |
| 0.24 |
| 0.47 |
| 0.71 |
| (0.23) |
| (0.23) |
| 7.43 |
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Class
C shares |
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2023 |
6.33 |
| 0.16 |
| 0.02 |
| 0.18 |
| (0.15) |
| (0.15) |
| 6.36 |
|
2022 |
7.63 |
| 0.11 |
| (1.30) |
| (1.19) |
| (0.11) |
| (0.11) |
| 6.33 |
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2021 |
7.43 |
| 0.11 |
| 0.20 |
| 0.31 |
| (0.11) |
| (0.11) |
| 7.63 |
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2020 |
7.46 |
| 0.12 |
| (0.04) |
| 0.08 |
| (0.11) |
| (0.11) |
| 7.43 |
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2019 |
6.97 |
| 0.19 |
| 0.47 |
| 0.66 |
| (0.17) |
| (0.17) |
| 7.46 |
|
Institutional
shares |
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2023 |
6.31 |
| 0.23 |
| 0.03 |
| 0.26 |
| (0.22) |
| (0.22) |
| 6.35 |
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2022 |
7.61 |
| 0.19 |
| (1.30) |
| (1.11) |
| (0.19) |
| (0.19) |
| 6.31 |
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2021 |
7.41 |
| 0.19 |
| 0.20 |
| 0.39 |
| (0.19) |
| (0.19) |
| 7.61 |
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2020 |
7.44 |
| 0.21 |
| (0.05) |
| 0.16 |
| (0.19) |
| (0.19) |
| 7.41 |
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2019 |
6.95 |
| 0.26 |
| 0.48 |
| 0.74 |
| (0.25) |
| (0.25) |
| 7.44 |
|
FINANCIAL
HIGHLIGHTS
(Continued)
PRINCIPAL
FUNDS,
INC.
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Total
Return |
Net
Assets, End of Period (in thousands) |
Ratio
of Expenses to Average Net Assets |
Ratio
of Expenses to Average Net Assets (Excluding Interest Expense and
Fees) |
Ratio
of Net Investment Income to Average Net Assets |
Portfolio
Turnover Rate |
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3.64 |
% |
(b) |
$261,663 |
| 0.85 |
% |
| 0.73 |
% |
(c) |
3.22 |
% |
36.9 |
% |
(14.99) |
| (b) |
299,054 |
| 0.77 |
|
| 0.73 |
| (c) |
2.44 |
| 59.3 |
|
5.19 |
| (b) |
417,381 |
| 0.79 |
|
| 0.76 |
| (c) |
2.18 |
| 24.8 |
|
1.89 |
| (b) |
356,581 |
| 0.81 |
|
| 0.77 |
| (c) |
2.50 |
| 66.7 |
|
10.28 |
| (b) |
358,580 |
| 0.86 |
|
| 0.79 |
| (c) |
3.36 |
| 64.0 |
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| |
2.71 |
| (b) |
16,673 |
| 1.74 |
| (d) |
1.62 |
| (c),(d) |
2.33 |
| 36.9 |
|
(15.67) |
| (b) |
22,134 |
| 1.61 |
| (d) |
1.57 |
| (c),(d) |
1.59 |
| 59.3 |
|
4.17 |
| (b) |
35,338 |
| 1.61 |
| (d) |
1.58 |
| (c),(d) |
1.37 |
| 24.8 |
|
1.05 |
| (b) |
38,229 |
| 1.63 |
| (d) |
1.59 |
| (c),(d) |
1.69 |
| 66.7 |
|
9.51 |
| (b) |
39,162 |
| 1.67 |
| (d) |
1.60 |
| (c),(d) |
2.55 |
| 64.0 |
|
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4.09 |
|
| 266,213 |
| 0.57 |
| (d) |
0.45 |
| (c),(d) |
3.51 |
| 36.9 |
|
(14.88) |
| (e) |
278,642 |
| 0.50 |
| (d) |
0.46 |
| (c),(d) |
2.72 |
| 59.3 |
|
5.44 |
| (e) |
345,082 |
| 0.54 |
| (d) |
0.51 |
| (c),(d) |
2.42 |
| 24.8 |
|
2.14 |
|
| 248,148 |
| 0.56 |
| (d) |
0.52 |
| (c),(d) |
2.85 |
| 66.7 |
|
10.73 |
|
| 163,406 |
| 0.59 |
| (d) |
0.52 |
| (c),(d) |
3.57 |
| 64.0 |
|
(a)Calculated
based
on
average
shares
outstanding
during
the
period.
(b)Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(c)Excludes
interest
expense
and
fees
paid
through
inverse
floater
agreements.
See
"Operating
Policies"
in
notes
to
financial
statements.
(d)Reflects
Manager's
contractual
expense
limit.
(e)Total
return is calculated using the traded net asset value which may differ from the
reported net asset value. The traded net asset value is the net asset value
which a shareholder would have paid or received from a subscription or
redemption.
ADDITIONAL
INFORMATION
Additional
information about the Funds is available in the SAI dated March 1, 2024, which
is incorporated by reference into this Prospectus. Additional information about
each Fund’s investments is available in the Registrant’s Annual and Semi-Annual
Reports to Shareholders. In the Registrant’s Annual Report, you will find a
discussion of the market conditions and investment strategies that significantly
affected each Fund’s performance during the last fiscal year. The SAI and the
Registrant’s Annual and Semi-Annual Reports can be obtained free of charge by
writing Principal Funds, P.O. Box 219971, Kansas City, MO 64121-9971. In
addition, the Registrant makes its SAI and Annual and Semi-Annual Reports
available, free of charge, on www.PrincipalAM.com/Prospectuses. To request this
and other information about the Funds and to make shareholder inquiries,
telephone 1-800-222-5852.
Reports
and other information about the Registrant are available on the EDGAR Database
on the SEC’s internet site at www.sec.gov. Copies of this information may be
obtained, upon payment of a duplicating fee, by electronic request at the
following e-mail address: [email protected].
The
Registrant has entered into a management agreement with PGI. The Registrant
and/or PGI, on behalf of the Funds, enter into contractual arrangements with
various parties, including, among others, the Funds' sub-advisors, distributor,
transfer agent, and custodian, who provide services to the Funds. These
arrangements are between the Registrant and/or PGI and the applicable service
provider. Shareholders are not parties to, or intended to be third-party
beneficiaries of, any of these arrangements. Such arrangements are not intended
to create in any individual shareholder or group of shareholders any right,
including the right to enforce such arrangements against the service providers
or to seek any remedy thereunder against PGI or any other service provider,
either directly or on behalf of the Registrant or any Fund.
This
Prospectus provides information that you should consider in determining whether
to purchase shares of a Fund. This Prospectus, the SAI, or the contracts that
are exhibits to the Registrant’s registration statement are not intended to give
rise to any agreement or contract between the Registrant and/or any Fund and any
investor, or give rise to any contract or other rights in any individual
shareholder, group of shareholders, or other person other than any rights
conferred explicitly by federal or state securities laws that may not be
waived.
The
U.S. government does not insure or guarantee an investment in any of the Funds.
There can be no assurance that the Government Money Market or Money Market Funds
will be able to maintain a stable share price of $1.00 per share.
Shares
of the Funds are not deposits or obligations of, or guaranteed or endorsed by,
Principal Bank or any other financial institution, nor are shares of the Funds
federally insured by the Federal Deposit Insurance Corporation, the Federal
Reserve Board, or any other agency.
Principal
Funds, Inc. SEC File 811-07572