PMOAX

Principal Opportunistic Municipal Fund

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Prospectus
Enhanced fact sheet

    Principal Opportunistic Municipal Fund

    Highlights

    Balancing risk and reward potential in tax-exempt investing

    • 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.
    • Sources opportunities in both investment-grade and high yield markets; higher quality and greater liquidity than a high-yield municipal-only fund.

    Fund details

    as of 12/10/2024 unless indicated otherwise
    Fund ticker
    PMOAX
    CUSIP
    74255L639
    Benchmark
    Bloomberg Municipal Bond Index
    NAV
    $9.86
    Total fund assets
    $159.4M
    Dividend frequency
    Daily
    Minimum investment
    $1,000.00
    Inception date
    06/14/2012
    Morningstar category
    High Yield Muni
    Investment approach
    The investment seeks to provide a high level of income that is exempt from federal income tax while protecting investors' capital. The fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in municipal obligations, which are securities issued by or on behalf of state or local governments and other public authorities. It invests in other debt obligations, including (but not limited to) taxable municipal obligations; U.S. Treasury securities; obligations of the U.S. government, its agencies, and instrumentalities; and exchange-traded funds (ETFs) to gain exposure to the municipal market.

    Performance & expenses

    As of 11/30/2024
    Name 1 month 3 month YTD 1-year 3-year 5-year 10-year Since inception Overall
    Excluding sales charge 1.70% 1.02% 5.62% 8.93% -1.46% 1.22% 3.42% 3.76% —
    Including sales charge -2.14% -2.74% 1.63% 4.81% -2.70% 0.46% 3.02% 3.44% —
    Benchmark performance
    Bloomberg Municipal Bond Index
    		 1.73% 1.23% 2.55% 4.93% -0.01% 1.35% 2.45% — —
    Morningstar category average
    High Yield Muni
    		 1.62% 1.45% 6.56% 9.72% -0.50% 1.51% 3.10% — —
    Morningstar percentile rankings — — — 72 82 68 33 — —
    # of funds in category 203 202 190 190 184 177 117 — 184
    Morningstar rating — — — — —
    30 Day SEC yield
    Unsubsidized as of 10/31/2024
    3.47%
    30 Day SEC yield
    Subsidized as of 10/31/2024
    3.50%
    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
    184 funds
    5-year
    177 funds
    10-year
    117 funds
    Overall
    184 funds
    3 year | 184 funds
    5 year | 177 funds
    10 year | 117 funds
    Overall | 184 funds

    Holdings

    Top 10

    as of 10/31/2024
    % of Assets
    % of Assets
    1. Atlanta Development Authority/The
    3.88%
    2. Atlanta Development Authority/The
    2.64%
    3. Mobile County Industrial Development Authority
    2.30%
    4. Parish of St James LA
    2.13%
    5. Oneida Indian Nation of New York
    2.08%
    6. Buckeye Tobacco Settlement Financing Authority
    2.04%
    7. Suffolk Regional Off-Track Betting Co
    2.04%
    8. Florida Development Finance Corp
    1.99%
    9. California Educational Facilities Authority
    1.94%
    10. Tender Option Bond Trust Receipts/Certificates
    1.66%
    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 11/30/2024
    17.30
    # of holdings
    as of 11/30/2024
    136
    Average weighted coupon
    as of 11/30/2024
    5.07%
    Average yield to maturity
    as of 11/30/2024
    5.10%
    Turnover ratio
    as of 08/31/2024
    70.10%
    Weighted avg duration
    as of 11/30/2024
    6.99
    Weighted avg life to worst
    as of 11/30/2024
    9.35
    Yield to worst
    as of 11/30/2024
    4.31%
    May not reflect current holdings or allocations.

    Portfolio management

    James Noble, CFA
    32 years of experience
    James Welch
    36 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.
    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 Index began on May 23, 2016 at a base value of 1,000.00.
    © 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.
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