PGDCX

Principal Diversified Income Fund

Share class
Copy URL
    View enhanced fact sheet

    Principal Diversified Income Fund

    Highlights

    Increase diversification and yield potential

    • Open architecture approach combines credit sectors and third-party managers targeting an incremental yield advantage over traditional, core fixed income.
    • Global, diversified opportunity set may offer more attractive income and total return potential than traditional, core fixed income.
    • Risk-aware portfolio construction incorporates macroeconomic insights with robust holdings-based risk analysis.

    Fund details

    as of 03/30/2023 unless indicated otherwise
    Fund ticker
    PGDCX
    CUSIP
    74254V216
    Benchmark
    DI Blended Index (Linked)
    NAV
    $11.72
    Total fund assets
    $3.0B
    Dividend frequency
    Monthly
    Minimum investment
    $1,000.00
    Inception date
    12/15/2008
    Morningstar category
    Multisector Bond
    Investment approach
    The investment seeks income. The fund generally invests a majority of its assets in fixed income securities, such as investment-grade corporate bonds, high yield bonds (also known as "junk" bonds), preferred securities, commercial mortgage-backed securities, and emerging market debt securities, in an effort to provide incremental yields over a portfolio of government securities. Such securities include instruments with variable or floating interest rates. The fixed income portion of the it is not managed to a particular maturity or duration. The fund invests in foreign, including emerging market, securities.

    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 -1.64% 1.24% 1.75% -6.64% -0.49% 0.68% 2.51% 6.90% —
    Including sales charge -2.62% 0.24% 0.75% -7.54% -0.49% 0.68% 2.51% 6.90% —
    Benchmark performance
    DI Blended Index (Linked)
    		 -2.59% -0.04% 0.41% -9.72% -1.62% -0.35% 2.43% — —
    Morningstar category average
    Multisector Bond
    		 -1.47% 1.40% 1.55% -5.65% -0.84% 1.30% 2.28% — —
    Morningstar percentile rankings — — — 63 46 75 50 — —
    # of funds in category 358 357 357 347 289 253 154 — 289
    Morningstar rating — — — — —
    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: Multisector Bond
    3 year
    289 funds
    5 year
    253 funds
    10 year
    154 funds
    Overall
    289 funds
    3 year | 289 funds
    5 year | 253 funds
    10 year | 154 funds
    Overall | 289 funds

    Holdings

    Top 10

    as of 02/28/2023
    % of Assets
    % of Assets
    1. iShares Broad USD Investment Grade Corporate Bond ETF
    2.93%
    2. iShares MBS ETF
    2.89%
    3. Principal Government Money Market Fund - Class R-6
    1.58%
    4. Specialty Steel
    1.41%
    5. Real Alloy Holding Inc
    0.98%
    6. ATD New Holdings Inc
    0.81%
    7. US Bancorp
    0.73%
    8. Vanguard Intermediate-Term Corporate Bond ETF
    0.71%
    9. iShares iBoxx High Yield Corporate Bond ETF
    0.68%
    10. SportsNet New York
    0.64%
    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

    # of holdings
    as of 02/28/2023
    1,514
    Turnover ratio
    as of 10/31/2022
    72.10%
    R-squared (5-year)
    as of 02/28/2023
    66.81
    Sharpe ratio (5-year)
    as of 02/28/2023
    -0.03
    Standard deviation (5-year)
    as of 02/28/2023
    9.79
    May not reflect current holdings or allocations.

    Portfolio management

    Jessica Bush, CFA
    22 years of experience
    Ben Rotenberg, CFA, CAIA
    30 years of experience
    May Tong, CFA
    22 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 investments are subject to interest rate risk; as interest rates rise their value will decline. Lower-rated securities are subject to additional credit and default risks, as are mortgage-backed securities, which carry pre-payment risk and increased risk due to real estate exposure. International investing involves greater risks such as currency fluctuations, political/social instability, and differing accounting standards. These risks are magnified in emerging markets, which have increased liquidity risk. Equity investments involve greater risk, including higher volatility, than fixed-income investments.
    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.
    DI Blended Index (Linked) composition: March 1, 2022 and after, 100% Bloomberg U.S. Aggregate Index (covers the U.S. investment-grade fixed rate bond market and represents securities that are domestic, taxable, and dollar denominated), for the period prior to March 1, 2022, 80% Bloomberg Global Aggregate Index (a broad-based measure of global investment-grade fixed income) and 20% MSCI World Value Index NTR (includes large- and mid-cap securities across developed markets that exhibit overall value style), and for the period prior to January 1, 2019, 40% Bloomberg Global Credit Index (represents global investment-grade, fixed-rate, taxable corporate and government-related bonds), 30% Bloomberg Global High Yield Index (represents the global high yield bond market), and 30% MSCI ACWI Value Index NTR (a market cap weighted index that is a broad measure of global equity-markets). Net Total Return (NTR) includes dividends after the deduction of withholding taxes.
    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.