Principal Global Diversified Income Fund Tops $1B in Assets in Less Than Two Years
Fewer than 3 percent of funds registered since December 2008 have reached milestone
November 11, 2010 (Des Moines, Iowa) - The Principal Global Diversified Income Fund (PGBAX), launched December 2008 by Principal Funds, recently surpassed $1 billion in assets. Less than 3 percent of all funds registered at that time have reached the $1 billion milestone.
“Our diversified approach – by asset class, by manager, by geography – in building this fund is resonating with advisors and investors,” said Mike Finnegan, portfolio advisor and Principal Funds chief investment officer. “We’re pleased with the fund’s growth, which we view as an affirmation of our strategy that seeks to maximize yield with a keen eye on risk.”
The Principal Global Diversified Income Fund is also one of the top 10 funds, based on sales, within Morningstar’s World Allocation category.
“We’ve been pleased with the fund,” said Don DeWaay, chairman and CEO of DeWaay Capital Management. “Being able to provide yield to investors in these challenging economic times is very attractive, especially with a tactical, multi-manager and multi-sector diversification model.”
Asset classes, managers and current target allocations in the fund include:
- High-yield bonds, Guggenheim – 35 percent
- Preferred securities, Spectrum Asset Management – 25 percent
- Emerging market debt, Principal Global Investors – 12 percent
- Global real estate securities, Principal Real Estate Investors – 11 percent
- Master limited partnerships (MLPs), Tortoise Capital Advisors – 10 percent
- Global value equities, Principal Global Investors – 7 percent
For more information about the Principal Global Diversified Income Fund, visit www.principalfunds.com/PGBAX. The site also includes the recent white paper for financial professionals, “Retirement Income Strategies – Why Diversification Matters,” (PDF: 802 KB) which explores diversified yield strategies.
About Principal Funds
Principal Funds is a leading provider of mutual funds, with $61.4 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 $305.7 billion in assets under management and serves some 18.9 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.
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.
Asset allocation/diversification does not guarantee a profit or protect against a loss.
Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Lower-rated securities are subject to additional credit and default risks. Risks associated with preferred securities differ from risks inherent with other investments. In particular, in the event of bankruptcy, a company’s preferred securities are senior to common stock but subordinated to all other types of corporate debt.
International investing involves increased risks due to currency fluctuations, political or social instability, and differences in accounting standards. These risks are magnified in emerging markets. REIT securities are subject to risk factors associated with the real estate industry and tax factors of REIT registration.
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.
- Strategic Insight listing of all open-end mutual funds registered between December 2008 and August 2010; asset levels as of Aug. 31, 2010.
- Morningstar estimated net flows by fund family for the World Allocation category; year-to-date through Sept. 30, 2010.
- High-yield bonds and preferred securities strategies may range +/- 5 percent; emerging market debt, global REIT and MLP strategies, +/- 3 percent; global value equities, +/- 2 percent and may not reflect current allocations. Allocations and sub-advisors may change at any time without warning.
- As of Sept. 30, 2010. Includes all share classes of the Principal Funds, Inc and Principal Variable Contracts Fund, Inc.
- FRC Mutual Fund Lifecycle Report 2Q10.
- "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 Sept. 30, 2010.