Principal Funds Launches Website Devoted to Preferred Securities
Preferredsecurities.com includes thought capital, tools and videos for financial professionals
June 9, 2011 (Des Moines, Iowa) – Due to the dynamic landscape of the preferred securities market, Principal Funds has launched a website for financial professionals that explores how preferred securities can offer potential for increased income, diversification and reduced volatility for their clients.
Preferredsecurities.com includes commentary from Spectrum Asset Management, one of the largest managers of preferred securities in the United States and subadvisor of the Principal Preferred Securities Fund (PPSAX). Founded in 1987, Spectrum is an independent affiliate of Principal Global Investors and has $12.2 billion in assets under management.
“The preferred securities environment continues to shift dramatically, in part due to recent regulatory changes,” said Phil Jacoby, executive director and chief investment officer at Spectrum and Principal Preferred Securities Fund portfolio manager. “We believe this is a unique timeframe, and we seek to structure the portfolio to provide an attractive and stable return for investors.”
The new website offers:
- Ongoing thought capital from Principal Funds and Spectrum that analyzes key influences on the preferred securities market
- Interactive videos that detail opportunities within the preferred securities market and the Principal Preferred Securities Fund
- Access to competitive analysis that allows users to compare preferred securities strategies
- Investor-friendly sales tools to help financial professionals engage clients
With $3.2 billion in assets, the Principal Preferred Securities Fund is the first and largest open-ended fund sold in the United States that focuses solely on preferred securities.
Spectrum manages portfolios of preferred securities for an international universe of corporate, pension fund, insurance and endowment clients; open-end and closed-end mutual funds domiciled in the United States, Ireland and Japan; and separately managed account programs for high net worth individual investors sponsored by a variety of broker-dealers.
In Barron’s latest annual ranking of top mutual fund families, Principal Funds earned No. 3 out of 57 fund families based on one-year performance and No. 7 out of 46 fund families based on 10-year performance. Principal Funds ranked third out of 57 fund families in the mixed equity (asset allocation) category, also based on one-year performance.
Principal Preferred Securities Fund Lipper Rankings
Principal Preferred Securities Fund: Lipper Ranking as of 6/30/11: 1 yr: 10(31); 3 yrs: 3(24); 5 yrs: 3(18); 10yrs: NA
Lipper Category: Flexible Income Funds
Past performance is no guarantee of future results.
Lipper rankings are based on total returns and do not reflect the inclusion of sales charges. If sales charges were reflected, rankings could be lower. Fund ranking calculated quarterly or annually by Lipper Inc. of New York. Each fund is ranked within a universe of funds similar in investment objective. Lipper Inc. is a nationally recognized organization that reports on mutual fund total return performance and calculated fund rankings.
About the Barron’s Fund Family Ranking
Past performance is no guarantee of future results. Of fund companies that met the criteria, Principal Funds was ranked #3 out of 57 companies for one year, #33 out of 53 for five years, and #7 out of 46 for 10 years, all periods ended 12/31/2010. In Barron's one-year sub-category rankings, Principal Funds ranked #3 in Mixed Equity, #7 in World Equity, #16 in U.S. Equity, #20 in Taxable Bond, and #29 in Tax-Exempt Bond (out of 57 fund families). Performance data used for the rankings does not account for any up-front sales charges, contingent deferred sales charges or 12b-1 fees.
To qualify for the rankings, a fund family must have at least three funds in Lipper's general U.S. stock category, one in world equity (combining global and international funds), one mixed-equity fund (stocks and bonds), at least two taxable bond funds and one tax-exempt offering. Each fund's return is measured against those of all funds in its Lipper category and assigned a percentile ranking, with 100 as the highest and 1 the lowest, which is then weighted by asset size, relative to the fund family's other assets in its general classification. The score is multiplied by the weighting of its general classification, as determined by the entire Lipper universe of funds. The category weightings for the one-year results: general equity, 40.52%; world equity, 14.32%; mixed equity, 16.46%; taxable bond, 24.52%; tax-exempt bond, 4.18%. The same process is repeated for the five- and 10-year rankings.
About Principal Funds
Principal Funds is a leading provider of mutual funds, with $70.1 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 retirement and global asset management leader. The Principal offers businesses, individuals and institutional clients a wide range of financial products and services, including retirement, investment services and insurance through its diverse family of financial services companies. A member of the FORTUNE 500®, the Principal Financial Group has $327.4 billion in assets under management and serves some 16.4 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.
Investors should carefully consider a fund’s investment objectives, risks, charges, and expenses prior to investing. A prospectus containing this and other information can be obtained by contacting a financial professional, visiting principalfunds.com, or by calling 800-222-5852. 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.
Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. 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.
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, 2011.
- As of March 31, 2011.
- As of March 31, 2011. Includes all share classes of the Principal Funds, Inc. and Principal Variable Contracts Funds, Inc.
- FRC Mutual Fund Lifecycle Report 1Q11.
- “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, 2011.