- High yield bonds
- Preferred securities
- Emerging market debt
- Master limited partnerships
- Global real estate securities
- Global value equities
- Commercial mortgage-backed securities
- Global infrastructure
- Call overwriting program
Funds shown may have recent negative performance. Please see principalfunds.com, or call 800-222-5852, for current performance information.About RiskFixed-income investments are subject to interest rate risk; as interest rates rise their value will decline. The Principal Global Diversified Income Fund invests in fixed income. Lower-rated securities are subject to additional credit and default risks. Risks of preferred securities differ from risks inherent in other investments. In particular, in a bankruptcy preferred securities are senior to common stock but subordinate to other corporate debt. International investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards. Risk is magnified in emerging markets, which may lack established legal, political, business or social structures to support securities markets. REITs are subject to risks associated with the real estate industry and REIT registration tax factors. A master limited partnership that invests in a particular industry may be harmed by economic events, subject to less regulation (and less protection for investors) than corporations under state laws, and subject to state taxation that may reduce income paid to its investors. Investment options that invest in mortgage securities (e.g., commercial mortgage-backed securities) are subject to increased risk due to real estate exposure. Call option writing seeks to reduce the volatility of underlying equities and improve the Fund’s economics through receipt of option premium. Though premiums are not considered income, they do accrue and may cause the Fund’s price to rise. This may limit upside potential and loss is possible. The Principal Diversified Real Asset Fund invests in fixed income. The U.S. government does not guarantee the principal or coupon payments of non-U.S. Treasury bonds. Investments in natural resource industries can be affected by disease, embargoes, international/political/economic developments, variations in the commodities markets/weather and other factors. Investing in derivatives entails specific risks regarding liquidity, leverage and credit that may reduce returns and/or increase volatility.
The Principal Global Multi-Strategy Fund uses alternative strategies such as arbitrage, leverage, derivatives and shorting securities. Long/short investing does not guarantee lower risk associated with equity markets, capitalization, sector swings or other factors and may have higher turnover with additional tax consequences. Short selling risks include investment loss and added costs to cover short positions. International investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards. Use of alternative strategies may magnify risk. Securities such as bonds, equities, international and emerging market securities, and currencies are subject to risks associated with market and interest rate movements. The Fund is non-diversified and may be more susceptible to price volatility if the Fund does not meet its objective. Investors should not expect significant outperformance during market rallies. Additional risks are included in the Fund’s prospectus.About Principal FundsPrincipal Funds is a leading provider of mutual funds, with $102.9 billion in assets under management. 3 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. 4 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 GroupThe Principal Financial Group ® (The Principal ®) 5 is a global investment management leader offering retirement services, insurance solutions and asset management. The Principal offers businesses, individuals and institutional clients a wide range of financial products and services, including retirement, asset management and insurance through its diverse family of financial services companies. Founded in 1879 and a member of the FORTUNE 500 ®, the Principal Financial Group has $466.2 billion in assets under management 6 and serves some 19.0 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. Carefully consider a fund’s objectives, risks, charges, and expenses. Contact your financial professional or visit principalfunds.com for a prospectus, or summary prospectus if available, containing this and other information. Please read it carefully before investing. Investing involves risk, including possible loss of principal.
Class I shares are available only to eligible investors, including various institutional investors and investors in certain mutual fund wrap or asset allocation programs. See the prospectus for eligibility requirements.Asset allocation and diversification do not ensure a profit or protect against a loss. Principal Funds are distributed by Principal Funds Distributor, Inc. 1 As of 12/31/13. Based on total returns. 2 Source: Morningstar. 3 As of September 30, 2013. Includes all share classes of the Principal Funds, Inc. and Principal Variable Contracts Funds, Inc. 4 Strategic Insight Mutual Fund Lifecycle Report Q3 2013. 5 “The Principal Financial Group” and “The Principal” are registered service marks of Principal Financial Services, Inc., a member of the Principal Financial Group. 6 As of Sept. 30, 2013.