PFUMX

Principal Finisterre Emerging Markets Total Return Bond Fund

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    Principal Finisterre Emerging Markets Total Return Bond Fund

    Highlights

    Unconstrained approach aims to participate in the upside potential of the emerging market debt (EMD) market, while seeking to limit downside volatility.

    • Designed to be an “all-weather” solution that assesses the full EMD market cycle and allocates across U.S. dollar, sovereign or corporate credit, local currency bonds, and foreign exchange.
    • Innovative portfolio construction process-rank and optimize EMD performance drivers (cash, income, alpha, and beta assets)-with an emphasis on volatility and liquidity.
    • EMD-focused investment manager with extensive experience of providing solutions within the whole emerging market universe through market cycles.

    Fund details

    as of 03/30/2023 unless indicated otherwise
    Fund ticker
    PFUMX
    CUSIP
    74255L175
    Benchmark
    Finisterre Unconstrained Emerging Markets Bond Blended Index
    NAV
    $8.61
    Total fund assets
    $422.7M
    Dividend frequency
    Monthly
    Minimum investment
    —
    Inception date
    07/11/2016
    Morningstar category
    Emerging Markets Bond
    Investment approach
    The investment seeks to generate total returns from current income and capital appreciation. The fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in bonds and other fixed-income securities that are tied economically to an emerging market, and in derivatives on such investments. It uses derivatives to enhance return and to hedge and manage investment risks.

    Performance & expenses

    As of 02/28/2023
    Name 1 month 3 month YTD 1 year 3 year 5 year 10 year Since inception Overall
    Total return % -2.13% 3.10% 1.75% -3.49% -0.89% 1.60% — 3.18% —
    Benchmark performance
    Finisterre Unconstrained Emerging Markets Bond Blended Index
    		 -2.32% 2.45% 1.10% -6.51% -3.71% -0.67% — — —
    Morningstar category average
    Emerging Markets Bond
    		 -2.51% 2.32% 1.03% -6.69% -3.89% -0.90% — — —
    Morningstar percentile rankings — — — 17 12 7 — — —
    # of funds in category 273 272 273 264 243 220 — — 243
    Morningstar rating — — — — — —
    30 Day SEC yield
    Unsubsidized as of 02/28/2023
    6.35%
    30 Day SEC yield
    Subsidized as of 02/28/2023
    6.37%
    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: Emerging Markets Bond
    3 year
    243 funds
    5 year
    220 funds
    Overall
    243 funds
    3 year | 243 funds
    5 year | 220 funds
    Overall | 243 funds

    Holdings

    Top 10

    as of 02/28/2023
    % of Assets
    % of Assets
    1. Principal Government Money Market Fund - Class R-6
    14.28%
    2. Brazil Notas do Tesouro Nacional Serie F
    4.69%
    3. Mexican Bonos
    4.52%
    4. Republic of South Africa Government Bond
    2.62%
    5. Indonesia Treasury Bond
    2.45%
    6. Iraq International Bond
    2.07%
    7. Ivory Coast Government International Bond
    1.73%
    8. KazMunayGas National Co JSC
    1.51%
    9. Tunisian Republic
    1.41%
    10. Saudi Government International Bond
    1.29%
    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
    6.72
    # of holdings
    as of 02/28/2023
    212
    Average weighted coupon
    as of 02/28/2023
    5.10%
    Average yield to maturity
    as of 02/28/2023
    8.27%
    Turnover ratio
    as of 10/31/2022
    117.40%
    Weighted avg duration
    as of 02/28/2023
    3.84
    Weighted avg life to worst
    as of 02/28/2023
    6.13
    Yield to worst
    as of 02/28/2023
    8.28%
    May not reflect current holdings or allocations.

    Portfolio management

    Damien Buchet, CFA
    31 years of experience
    Christopher Watson, CFA
    24 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.
    Emerging market debt may be subject to heightened default and liquidity risk.
    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
    International investing involves greater risks such as currency fluctuations, political/social instability, and differing accounting standards.
    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.
    Risk is magnified in emerging markets, which may lack established legal, political, business, or social structures to support securities markets.
    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.