CMPIX

Principal Core Fixed Income Fund

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    Principal Core Fixed Income Fund

    Highlights

    A high-conviction, long-term approach to core bond investing

    • Long-term investment horizon allows a value approach to capture total return over a full market cycle.
    • A research-driven, low-turnover strategy focused on bonds with a margin of safety.
    • Preference for bonds with asymmetric risk profiles.

    Fund details

    as of 03/23/2023 unless indicated otherwise
    Fund ticker
    CMPIX
    CUSIP
    74254V638
    Benchmark
    Bloomberg U.S. Aggregate Bond Index
    NAV
    $8.63
    Total fund assets
    $9.9B
    Dividend frequency
    Daily
    Minimum investment
    $1,000.00
    Inception date
    12/15/1975
    Morningstar category
    Intermediate Core Bond
    Investment approach
    The investment seeks to provide a high level of current income consistent with preservation of capital. The fund invests primarily in a diversified pool of investment-grade fixed-income securities, including corporate securities, U.S. government securities, asset-backed securities and mortgage-backed securities. It maintains an average portfolio duration that is within ±25% of the duration of the Bloomberg US Aggregate Bond Index.

    Performance & expenses

    As of 02/28/2023
    Name 1 month 3 month YTD 1 year 3 year 5 year 10 year Since inception Overall
    Excluding sales charge -2.45% 0.20% 0.78% -9.21% -3.56% 0.38% 1.24% 6.54% —
    Including sales charge -4.65% -2.00% -1.44% -11.27% -4.29% -0.09% 1.01% 6.44% —
    Benchmark performance
    Bloomberg U.S. Aggregate Bond Index
    		 -2.59% -0.04% 0.41% -9.72% -3.77% 0.53% 1.12% — —
    Morningstar category average
    Intermediate Core Bond
    		 -2.40% 0.16% 0.66% -9.90% -3.63% 0.39% 0.96% — —
    Morningstar percentile rankings — — — 23 40 57 24 — —
    # of funds in category 473 470 470 455 407 374 277 — 407
    Morningstar rating — — — — —
    30 Day SEC yield
    Unsubsidized as of 02/28/2023
    3.64%
    30 Day SEC yield
    Subsidized as of 02/28/2023
    3.64%
    Returns represent past performance and do not guarantee future results. Share price, principal value, and return will vary and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted.
    Returns shown for periods of less than one year are not annualized.
    Index performance information: no deductions for fees, expenses or taxes. Indices are unmanaged and individuals cannot invest directly in an index.

    Ratings

    Morningstar Star Ratings

    as of 02/28/2023  |  Category: Intermediate Core Bond
    3 year
    407 funds
    5 year
    374 funds
    10 year
    277 funds
    Overall
    407 funds
    3 year | 407 funds
    5 year | 374 funds
    10 year | 277 funds
    Overall | 407 funds

    Holdings

    Top 10

    as of 02/28/2023
    % of Assets
    % of Assets
    1. Principal Government Money Market Fund - Class R-6
    4.99%
    2. Fifth Third Bancorp
    0.56%
    3. Biogen Inc
    0.54%
    4. CARDS II Trust
    0.53%
    5. Five Corners Funding Trust
    0.50%
    6. Truist Bank
    0.50%
    7. Fannie Mae Pool
    0.50%
    8. Interstate Power and Light Co
    0.49%
    9. American Tower Corp
    0.48%
    10. Bank of New York Mellon Corp/The
    0.48%
    The holdings listed do not constitute a recommendation to purchase or sell a particular security. Cash and/or derivative positions that are not part of the core investment strategy will not be reflected in the top holdings list.
    May not reflect current holdings or allocations.

    Portfolio characteristics

    Average effective maturity
    as of 02/28/2023
    8.88
    # of holdings
    as of 02/28/2023
    477
    Average weighted coupon
    as of 02/28/2023
    3.21%
    Average yield to maturity
    as of 02/28/2023
    5.07%
    Turnover ratio
    as of 10/31/2022
    13.70%
    Weighted avg duration
    as of 02/28/2023
    6.20
    Weighted avg life to worst
    as of 02/28/2023
    8.71
    Yield to worst
    as of 02/28/2023
    5.05%
    May not reflect current holdings or allocations.

    Portfolio management

    John R. Friedl, CFA
    25 years of experience
    Scott J. Peterson, CFA
    34 years of experience

    Literature

    Portfolio holdings

    Investment materials

    Disclosures
    Principal Funds are distributed by Principal Funds Distributor, Inc. ALPS Distributors, Inc. is the distributor of the Principal ETFs. ALPS Distributors, Inc. and the Principal Funds are not affiliated.
    Fixed‐income investment options are subject to interest rate risk, and their value will decline as interest rates rise.
    The holdings listed do not constitute a recommendation to purchase or sell a particular security. Cash and/or derivative positions that are not part of the core investment strategy will not be reflected in the top holdings list.
    NOT FDIC INSURED - MAY LOSE VALUE - NO BANK GUARANTEE
    Morningstar percentile rankings are based on total returns and do not reflect the inclusion of sales charges. If sales charges were reflected, rankings could be lower.
    Performance assumes reinvestment of all dividends and capital gains.
    Principal Global Investors is the Investment Adviser of all funds included in the Principal Funds, Inc. Principal Funds are managed by Principal Global Investors, its boutique affiliates, and by many leading sub-advisors.
    To obtain a prospectus, download or call Customer Service at 1.800.222.5852. Carefully consider a fund’s objectives, risks, charges, and expenses. The prospectus, or summary prospectus if available, contains this and other information. Please read it carefully before investing.
    The Bloomberg US Aggregate Bond Index is a broad-based flagship benchmark that measures the investment grade, US dollar-denominated, fixed-rate taxable bond market. The index includes Treasuries, government-related and corporate securities, MBS (agency fixed-rate pass-throughs), ABS and CMBS (agency and non-agency). (Future Ticker: I00001US)
    The Morningstar Analyst Rating™ is not a credit or risk rating. It is a subjective evaluation performed by Morningstar’s manager research group, which consists of various Morningstar, Inc. subsidiaries (“Manager Research Group”). In the United States, that subsidiary is Morningstar Research Services LLC, which is registered with and governed by the U.S. Securities and Exchange Commission. The Manager Research Group evaluates funds based on five key pillars, which are process, performance, people, parent, and price. The Manager Research Group uses this five-pillar evaluation to determine how they believe funds are likely to perform relative to a benchmark over the long term on a risk adjusted basis. They consider quantitative and qualitative factors in their research. For actively managed strategies, people and process each receive a 45% weighting in their analysis, while parent receives a 10% weighting. For passive strategies, process receives an 80% weighting, while people and parent each receive a 10% weighting. For both active and passive strategies, performance has no explicit weight as it is incorporated into the analysis of people and process; price at the share-class level (where applicable) is directly subtracted from an expected gross alpha estimate derived from the analysis of the other pillars. The impact of the weighted pillar scores for people, process and parent on the final Analyst Rating is further modified by a measure of the dispersion of historical alphas among relevant peers. For certain peer groups where standard benchmarking is not applicable, primarily peer groups of funds using alternative investment strategies, the modification by alpha dispersion is not used.
    The Analyst Rating scale is Gold, Silver, Bronze, Neutral, and Negative. For active funds, a Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s expectation that an active fund will be able to deliver positive alpha net of fees relative to the standard benchmark index assigned to the Morningstar category. The level of the rating relates to the level of expected positive net alpha relative to Morningstar category peers for active funds. For passive funds, a Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s expectation that a fund will be able to deliver a higher alpha net of fees than the lesser of the relevant Morningstar category median or 0. The level of the rating relates to the level of expected net alpha relative to Morningstar category peers for passive funds. For certain peer groups where standard benchmarking is not applicable, primarily peer groups of funds using alternative investment strategies, a Morningstar Analyst Rating of Gold, Silver, or Bronze reflects the Manager Research Group’s expectation that a fund will deliver a weighted pillar score above a predetermined threshold within its peer group. Analyst Ratings ultimately reflect the Manager Research Group’s overall assessment, are overseen by an Analyst Rating Committee, and are continuously monitored and reevaluated at least every 14 months.
    For more detailed information about Morningstar’s Analyst Rating, including its methodology, please go to https://shareholders.morningstar.com/investor-relations/governance/Compliance--Disclosure/default.aspx.
    The Morningstar Analyst Rating (i) should not be used as the sole basis in evaluating a fund, (ii) involves unknown risks and uncertainties which may cause the Manager Research Group’s expectations not to occur or to differ significantly from what they expected, and (iii) should not be considered an offer or solicitation to buy or sell the fund.