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Investment Type: pif

Preferred Securities R3 Fund (PNARX)







Quick Facts


PNARX
06/01/2004

05/01/2002
Preferred Stock
$4,403.87

Investment Strategy

   What's this?
The investment seeks to provide current income. The fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in preferred securities at the time of each purchase. It concentrates its investments (invests more than 25% of its net assets) in securities in the U.S. and non-U.S. financial services (i.e., banking, insurance and commercial finance,) industry. The fund also regularly invests in the real estate investment trust (i.e. REIT) and utility industries.




Morningstar Style Box™

  as of 02/28/2014
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Investment Style
Stylebox Market Capitalization

Overall Morningstar Star Rating™

  as of 03/31/2014
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Out of 32 Preferred Stock Funds

StarRating

Morningstar's Star Ratings reflect risk adjusted performance and are derived from a weighted average of the performance figures associated with its three, five, and ten-year (if applicable) time periods.


Total Returns



Investment results shown represent historical performance and do not guarantee future results. Investment returns and principal values fluctuate with changes in interest rates and other market conditions so the value, when redeemed, may be worth more or less than original costs. Current performance may be lower or higher than the performance data shown.

In situations where the net and gross total investment expense figures are different, the mutual fund or the underlying fund in which a Separate Account invests has waived/capped a portion of its management fees through the date displayed in the waiver expiration date or contractual cap expiration date column. Differences may also be shown due to the fund family choosing to pay certain expenses that would normally be payable by the fund. Returns displayed are based on net total investment expense.



Month-End | Quarter-End
Average Annual Total Returns as of 03/31/2014
1 Month3 MonthYTD1 Year3 Year5 Year10 YearSince     
Inception*
Total Return % 1.29 5.07 5.07 3.66 7.09 20.03 5.12 5.78
Preferreds Blended Index % 1.33 5.85 5.85 4.79 7.55 19.96 3.55 ---
Preferred Stock Category % 1.35 5.53 5.53 3.04 8.14 22.76 4.92 ---
Morningstar Percentile Rankings** --- --- --- 56 71 78 20 ---
# of Funds in Category 41 41 41 37 32 19 6 ---
06/01/200405/01/2002
**Morningstar percentile rankings are based on total returns.


Expenses

  as of 03/31/2014
Total Investment Expense - Gross: 1.27%
Total Investment Expense - Net: 1.27%
12b-1 Fee: 0.25%
Total Investment Expense Gross Per $1,000 Invested: $12.70

Statistics

 

30-Day SEC Yield - Subsidized (Net)
as of 03/31/2014:
4.64%
30-Day SEC Yield - Non-Subsidized (Gross)
as of 03/31/2014:
4.64%


Growth of $10,000

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Performance assumes reinvestment of all dividends and capital gains. Extended performance is calculated based on the historical performance of the investment option's oldest share class, adjusted for the fees and expenses of the share class shown. Periods of less than one year are not annualized.



Inv Manager or Sub-Advisor

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Spectrum



Portfolio Managers

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L. Phillip Jacoby IV
Since 05/01/2002
B.S. , Boston University

Mark A. Lieb
Since 07/01/2009
M.B.A. , University of Hartford

Manu Krishnan , CFA
Since 12/31/2010
M.B.A. , Cornell University

Fernando Diaz
Since 12/31/2010


Roberto Giangregorio
Since 12/31/2010
M.B.A. , Cornell University






Morningstar
© 2014 Morningstar, Inc. All Rights Reserved. Part of the mutual fund data contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information.

Returns shown for periods of less than one year are not annualized.

Insurance products and plan administrative services, if applicable, are provided by Principal Life Insurance Company. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities are offered through Princor Financial Services Corporation, 800-547-7754, member SIPC and/or independent broker/dealers. Securities sold by a Princor® Registered Representative are offered through Princor. Principal Funds Distributor, Princor and Principal Life are members of the Principal Financial Group®, Des Moines, IA 50392. Certain investment options may not be available in all states or U.S. commonwealths.

The full name of this investment option is Principal Funds, Inc. - Principal Preferred Securities R3 Fund.

Investors should carefully consider a mutual fund's investment objectives, risks, charges, and expenses prior to investing. A prospectus, or summary prospectus if available, containing this and other information can be obtained by contacting a financial professional, visiting principal.com, or calling 1-800-547-7754. Read the prospectus carefully before investing.

Not FDIC Insured
May Lose Value - Not a Deposit - No Bank Guarantee
Not Insured by any Federal Government Agency

Fees and expenses are only one of several factors that participants and beneficiaries should consider when making investment decisions.  The cumulative effect of fees and expenses can substantially reduce the growth of a participant's or beneficiary's retirement account.  Participants and beneficiaries can visit the Employee Benefit Security Administration's website for an example demonstrating the long-term effect of fees and expenses.

Preferreds Blended Index is composed of 50% BofA Merrill Lynch Fixed Rate Preferred Securities Index and 50% BofA Merrill Lynch U.S. Capital Securities Index. The blended index historic returns reflect the allocation as of the time of production. Previous allocation changes are not restated.

These calculated returns reflect the historical performance of the oldest share class of the fund, adjusted to reflect a portion of the fees and expenses of this share class. For time periods prior to inception date of the fund, predecessor performance is reflected. Please see the fund's prospectus for more information on specific expenses, and the fund's most recent shareholder report for actual date of first sale. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class.

Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure.

Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Neither the principal of bond investment options nor their yields are guaranteed by the U.S. government.