Relaunched Principal Capital Appreciation Fund is Free of Geographic Limits
Former Principal West Coast Equity Fund invested only in regional companies
July 8, 2009 (Des Moines, IA) — Undergoing a change in name and investment strategy, the Principal West Coast Equity Fund is now the Principal Capital Appreciation Fund (CMNWX).
Previously, the fund was limited to investing in companies located or doing significant business in Alaska, California, Oregon and Washington. The new name and strategy allow the portfolio manager to take advantage of a wider range of investment opportunities throughout the United States.
"The investment philosophy behind this fund has a proven history of success," said Dave Reichart, head of business development for Principal Funds. "By lifting geographic restrictions on stocks the fund can hold, we're expanding our opportunity to deliver even more value to the investor."
The investment approach is long-term, generally with a 3- to 5-year time horizon for the fund's holdings. The buy-and-hold strategy generates low portfolio turnover, which contributes to the fund's tax efficiency and relatively low expenses.
"We believe, and our results demonstrate, that growing businesses with sustainable competitive advantages and high barriers to entry outperform over time," said Phil Foreman, portfolio manager at Edge Asset Management, an affiliate of Principal Global Investors. "We prefer to be long-term owners of businesses rather than traders of stock. Being an all-cap fund affords us the latitude to own these successful businesses as they grow from small cap to mega cap. Our objective is to begin investing in these companies while they are small or trading at a discount to their private market value."
The fund was recently recognized by Lipper as the best multi-cap core fund over 10 years. The Lipper Fund Awards program highlights funds that have excelled in delivering consistently strong risk-adjusted performance, relative to peers.
"With continued unpredictability in the market, multi-cap investing may be a good fit for investors who are ready to take their money off the sidelines but don't want to have to decide whether to invest in small-, mid- or large-cap funds," Reichart said.
About Principal Funds
Principal Funds is a leading provider of mutual funds, with more than $40 billion in assets under management. Principal Funds brings expertise in global investment management, asset allocation and retirement leadership to financial professionals and investors. Including its target-risk and target-date offerings, Principal Funds is the fifth-largest manager of lifecycle funds in the industry. The companies that make up Principal Funds are members of the Principal Financial Group®. For more information, visit www.principalfunds.com .
About the Principal Financial Group
The Principal Financial Group® (The Principal ®) is a leader in offering businesses, individuals and institutional clients a wide range of financial products and services, including retirement and investment services, life and health insurance, and banking through its diverse family of financial services companies. A member of the Fortune 500, the Principal Financial Group has $236.6 billion in assets under management and serves some 18.8 million customers worldwide from offices in Asia, Australia, Europe, Latin America and the United States. Principal Financial Group, Inc. is traded on the New York Stock Exchange under the ticker symbol PFG. For more information, visit www.principal.com.
Before investing, you should carefully consider a fund's investment objectives, risks, charges, and expenses. Contact your financial professional, visit principalfunds.com, or call 800-222-5852 to obtain a prospectus containing this and other information. Read the prospectus carefully before investing.
A mutual fund's share price and investment return will vary with market conditions, and the principal value of an investment when you sell your shares may be more or less than the original cost.
Small-cap and mid-cap stocks may have additional risks, including greater price volatility. The calculation periods extend over 36, 60, and 120 months. The highest Lipper Leader for Consistent Return (effective return) value within each eligible classification determines the fund classification winner over 3, 5, or 10 years. West Coast Equity Fund - 3 yrs: 32/622 funds, 5 yrs: 25/442 funds, 10 yrs: 1/184 funds.
Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc., member of the Principal Financial Group®. Principal Funds Distributor, Principal Shareholder Services, Principal Management Corporation and its affiliates, and Principal Funds, Inc. are collectively referred to as Principal Funds.
- As of March 31, 2009. Includes all share classes of the Principal Funds, Inc and Principal Variable Contracts Fund, Inc.
- FRC Mutual Fund Lifecycle Report 1Q09.
- "The Principal Financial Group" and "The Principal" are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group.
- As of March 31, 2009