SRCMX | Principal California Municipal Fund | Principal Asset Management

SRCMX

Principal California Municipal Fund

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Prospectus

Overview

Performance

As of 12/31/2025

YTD

3.54%

1-year

3.54%

3-year

3.81%

5-year

0.37%

10-year

2.11%

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.

Overall Morningstar Rating™

As of 11/30/2025

Highlights

Attractive tax-free income, singularly focused on mid-quality California municipal credit

Active management seeks the optimal spot on the yield curve and higher exposure to bonds rated A and BBB, in an effort to maximize yield.
Preference for revenue bonds that provide attractive relative yield and less sensitivity to business cycles.
Ability to participate in all California issues, exploiting market and sector dislocations, through credit research.

Fund details

as of 01/06/2026 unless indicated otherwise

Fund ticker

SRCMX

CUSIP

74254V695

Benchmark

Bloomberg California Municipal Bond Index

NAV

$9.84

Total fund assets

$658.04M

Dividend frequency

Daily

Minimum investment

$1,000.00

Inception date

07/25/1989

Morningstar category

Muni California Intermediate

Investment approach

The investment seeks to provide as high a level of current income that is exempt from federal and state personal income tax as is consistent with prudent investment management and preservation of capital. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in California municipal obligations (securities issued by or on behalf of state or local governments and other public authorities). Generally, these municipal obligations pay interest that is exempt from state personal income tax and federal income tax.

Performance & expenses

As of 12/31/2025

Month end Quarter end

Name	1 month	3 month	YTD	1-year	3-year	5-year	10-year	Since inception	Overall
Name	1 month	3 month	YTD	1-year	3-year	5-year	10-year	Since inception	Overall	Excluding sales charge	0.20%	1.40%	3.54%	3.54%	3.81%	0.37%	2.11%	4.51%	—
Including sales charge	-3.52%	-2.39%	-0.32%	-0.32%	2.48%	-0.39%	1.72%	4.40%	—
Benchmark performance	—	—	—	—	—	—	—	—	—
Morningstar category average	—	—	—	—	—	—	—	—	—
Morningstar percentile rankings	—	—	—	79	24	76	22	—	—
# of funds in category	60	61	61	61	54	53	45	—	54
Morningstar rating Morningstar ratings disclosure Morningstar ratings are based on risk-adjusted returns. The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar risk-adjusted return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Morningstar ratings do not reflect the inclusion of sales charges. If sales charges were reflected, ratings could be lower.	—	—	—	—				—

30-Day SEC yield

Unsubsidized as of 11/30/2025

3.21%

30-Day SEC yield

Subsidized as of 11/30/2025

3.21%

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.

Name	1 month	3 month	YTD	1-year	3-year	5-year	10-year	Since inception	Overall
Name	1 month	3 month	YTD	1-year	3-year	5-year	10-year	Since inception	Overall	Excluding sales charge	0.20%	1.40%	3.54%	3.54%	3.81%	0.37%	2.11%	4.51%	—
Including sales charge	-3.52%	-2.39%	-0.32%	-0.32%	2.48%	-0.39%	1.72%	4.40%	—
Benchmark performance	—	—	—	—	—	—	—	—	—
Morningstar category average	—	—	—	—	—	—	—	—	—

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.

Data	2025	2024	2023	2022	2021
Excluding sales charge	3.54%	2.37%	5.55%	-10.70%	1.98%
Including sales charge	-0.32%	-1.51%	1.55%	-14.04%	-1.82%
Morningstar category average Muni California Intermediate	2.85%	1.68%	4.91%	-6.80%	1.16%

Date	Type	Dollar per share
12/31/2025	Income	0.0300
11/28/2025	Income	0.0258
10/31/2025	Income	0.0311
09/30/2025	Income	0.0276
08/29/2025	Income	0.0304
07/31/2025	Income	0.0295
06/30/2025	Income	0.0274
05/30/2025	Income	0.0298
04/30/2025	Income	0.0273
03/31/2025	Income	0.0265
02/28/2025	Income	0.0248
01/31/2025	Income	0.0281
12/31/2024	Income	0.0270
11/29/2024	Income	0.0260
10/31/2024	Income	0.0259
09/30/2024	Income	0.0234
08/30/2024	Income	0.0271
07/31/2024	Income	0.0258
06/28/2024	Income	0.0231
05/31/2024	Income	0.0269
04/30/2024	Income	0.0243
03/28/2024	Income	0.0249
02/29/2024	Income	0.0229
01/31/2024	Income	0.0240
12/29/2023	Income	0.0255
11/30/2023	Income	0.0236
10/31/2023	Income	0.0239
09/29/2023	Income	0.0239
08/31/2023	Income	0.0235
07/31/2023	Income	0.0219
06/30/2023	Income	0.0241
05/31/2023	Income	0.0233
04/28/2023	Income	0.0208
03/31/2023	Income	0.0245
02/28/2023	Income	0.0202
01/31/2023	Income	0.0207

Ratings

Morningstar ratings

Morningstar ratings disclosure

Overall Morningstar Rating™ as of 11/30/25 among Muni California Intermediate Funds. Morningstar ratings are based on risk-adjusted returns.

The Morningstar Rating™ for funds, or “star rating”, is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar risk-adjusted return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Morningstar ratings do not reflect the inclusion of sales charges. If sales charges were reflected, ratings could be lower.

as of 11/30/2025

3-year

54 funds

5-year

53 funds

10-year

45 funds

Overall

54 funds

3 year | 54 funds

5 year | 53 funds

10 year | 45 funds

Overall | 54 funds

Holdings

Top 10

as of 11/30/2025

% of Assets

1. California Public Finance Auth

2.65%

2. California Pollution Control F

1.95%

3. California Housing Finance Age

1.85%

4. California Educational Facilit

1.75%

5. Los Angeles County Public Work

1.71%

6. San Diego County Regional Airp

1.71%

7. California Health Facilities F

1.70%

8. California Educational Facilit

1.69%

9. County of Sacramento CA Airpor

1.67%

10. Golden State Tobacco Securitiz

1.67%

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 12/31/2025

13.35

# of holdings

as of 12/31/2025

215

Average weighted coupon

as of 12/31/2025

4.84%

Average yield to maturity

as of 12/31/2025

4.71%

Turnover ratio

as of 04/30/2025

56.00%

Weighted avg duration

as of 12/31/2025

6.45

Weighted avg life to worst

as of 12/31/2025

7.42

Yield to worst

as of 12/31/2025

4.11%

May not reflect current holdings or allocations.

Portfolio management

Literature

Investment materials

Portfolio holdings

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.

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 prospectus online 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.

Bloomberg Municipal Bond: California Exempt Total Return Index Unhedged USD

© 2026 Morningstar, Inc. All rights reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Past performance is no guarantee of future results.

The Morningstar Medalist Rating™ is the summary expression of Morningstar’s forward-looking analysis of investment strategies as offered via specific vehicles using a rating scale of Gold, Silver, Bronze, Neutral, and Negative. The Medalist Ratings indicate which investments Morningstar believes are likely to outperform a relevant index or peer group average on a risk-adjusted basis over time. Investment products are evaluated on three key pillars (People, Parent, and Process) which, when coupled with a fee assessment, forms the basis for Morningstar’s conviction in those products’ investment merits and determines the Medalist Rating they’re assigned. Pillar ratings take the form of Low, Below Average, Average, Above Average, and High. Pillars may be evaluated via an analyst’s qualitative assessment (either directly to a vehicle the analyst covers or indirectly when the pillar ratings of a covered vehicle are mapped to a related uncovered vehicle) or using algorithmic techniques. Vehicles are sorted by their expected performance into rating groups defined by their Morningstar Category and their active or passive status. When analysts directly cover a vehicle, they assign the three pillar ratings based on their qualitative assessment, subject to the oversight of the Analyst Rating Committee, and monitor and reevaluate them at least every 14 months. When the vehicles are covered either indirectly by analysts or by algorithm, the ratings are assigned monthly. For more detailed information about these ratings, including their methodology, please refer to the Morningstar shareholder disclosures .

The Morningstar Medalist Ratings are not statements of fact, nor are they credit or risk ratings. The Morningstar Medalist Rating (i) should not be used as the sole basis in evaluating an investment product, (ii) involves unknown risks and uncertainties which may cause expectations not to occur or to differ significantly from what was expected, (iii) are not guaranteed to be based on complete or accurate assumptions or models when determined algorithmically, (iv) involve the risk that the return target will not be met due to such things as unforeseen changes in management, technology, economic development, interest rate development, operating and/or material costs, competitive pressure, supervisory law, exchange rate, tax rates, exchange rate changes, and/or changes in political and social conditions, and (v) should not be considered an offer or solicitation to buy or sell the investment product. A change in the fundamental factors underlying the Morningstar Medalist Rating can mean that the rating is subsequently no longer accurate.

The Analyst-Driven % data point displays the weighted percentage of a vehicle’s pillar ratings assigned directly or indirectly by analysts.

The Data Coverage % data point is a summary metric describing the level of data completeness used to generate the overall rating.