PGDIX

Principal Diversified Income Fund

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Prospectus
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 12/11/2024 unless indicated otherwise
    Fund ticker
    PGDIX
    CUSIP
    74254V232
    Benchmark
    DI Blended Index (Linked)
    NAV
    $11.96
    Total fund assets
    $2.6B
    Dividend frequency
    Monthly
    Minimum investment
    —
    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, securitized products, 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 fund is not managed to a particular maturity or duration. The fund invests in foreign, including emerging market, securities.

    Performance & expenses

    As of 11/30/2024
    Name 1 month 3 month YTD 1-year 3-year 5-year 10-year Since inception Overall
    Total return 1.03% 1.09% 6.26% 9.82% 1.61% 2.91% 3.60% 7.64% —
    Benchmark performance
    DI Blended Index (Linked)
    		 1.06% -0.13% 2.93% 6.88% -1.44% 0.62% 2.13% — —
    Morningstar category average
    Multisector Bond
    		 1.05% 1.18% 6.69% 9.97% 1.63% 2.51% 3.05% — —
    Morningstar percentile rankings — — — 51 50 37 24 — —
    # of funds in category 367 365 357 357 325 270 191 — 325
    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 Ratings

    as of 11/30/2024
    3-year
    325 funds
    5-year
    270 funds
    10-year
    191 funds
    Overall
    325 funds
    3 year | 325 funds
    5 year | 270 funds
    10 year | 191 funds
    Overall | 325 funds

    Holdings

    Top 10

    as of 09/30/2024
    % of Assets
    % of Assets
    1. Principal Government Money Market Fund - Class R-6
    1.57%
    2. Specialty Steel
    1.51%
    3. Real Alloy Holding Inc
    1.12%
    4. Cliffwater Enhanced Lending Fund
    1.10%
    5. Variant Alternative Income Fund
    1.03%
    6. Daiwa Securities Repurchase Agreement
    0.85%
    7. Material Sciences Corp
    0.85%
    8. United States Treasury Floating Rate Note
    0.74%
    9. SportsNet New York
    0.72%
    10. Engineered Machinery Holdings Inc
    0.71%
    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 11/30/2024
    3,457
    Turnover ratio
    as of 04/30/2024
    86.00%
    Weighted avg duration
    as of 11/30/2024
    4.19
    R-squared (3-year)
    as of 11/30/2024
    78.64
    Sharpe ratio (3-year)
    as of 11/30/2024
    -0.33
    Standard deviation (3-year)
    as of 11/30/2024
    6.96
    May not reflect current holdings or allocations.

    Portfolio management

    Jessica Bush, CFA
    23 years of experience
    Ben Rotenberg, CFA, CAIA
    31 years of experience
    May Tong, CFA
    23 years of experience

    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.
    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.
    © 2024 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 go to https://shareholders.morningstar.com/investor-relations/governance/Compliance--Disclosure/default.aspx.
    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.
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    The Data Coverage % data point is a summary metric describing the level of data completeness used to generate the overall rating.