Investment objective & strategy
As of Feb. 27, 2026 · prospectusObjective. The Fund seeks to provide a high level of current income consistent with preservation of capital.
Strategy. Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in fixed-income securities. The Fund invests primarily in a diversified pool of investment-grade fixed-income securities, which includes corporate securities, U.S. government securities, asset-backed securities and mortgage-backed securities (securitized products), bank loans, and foreign securities. Investment grade securities are rated BBB- or higher by S&P Global Ratings (S&P Global) or Baa3 or higher by Moodys Investors Service, Inc. (Moodys), at the time of purchase. If the security has been rated by only one of the rating agencies, that rating will determine the securitys rating; if the security is rated differently by the rating agencies, the highest rating is used; and if the … Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in fixed-income securities. The Fund invests primarily in a diversified pool of investment-grade fixed-income securities, which includes corporate securities, U.S. government securities, asset-backed securities and mortgage-backed securities (securitized products), bank loans, and foreign securities. Investment grade securities are rated BBB- or higher by S&P Global Ratings (S&P Global) or Baa3 or higher by Moodys Investors Service, Inc. (Moodys), at the time of purchase. If the security has been rated by only one of the rating agencies, that rating will determine the securitys rating; if the security is rated differently by the rating agencies, the highest rating is used; and if the security has not been rated by either of the rating agencies, those selecting such investments will determine the securitys quality. The Fund is not managed to a particular maturity. Under normal circumstances, the Fund maintains an average portfolio duration that is within 25% of the duration of the Bloomberg US Aggregate Index, which as of January 31, 2026 was 5.76 years.
Top holdings
As of Jan. 31, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| Principal Government Money Market Fund - Class R-6 | — | $154.21M | 1.46% |
| ABBVIE INC | — | $61.51M | 0.58% |
| BIOGEN INC | — | $59.75M | 0.56% |
| WASTE CONNECT | — | $53.66M | 0.51% |
| AMERICAN TOWER | — | $52.42M | 0.50% |
| BRANCH BKG & TR | — | $52.31M | 0.49% |
| RYDER SYSTEM INC | — | $50.57M | 0.48% |
| PNC BANK NA | — | $50.18M | 0.47% |
| PPL ELECTRIC UTI | — | $49.62M | 0.47% |
| NEXTERA ENERGY | — | $48.61M | 0.46% |
Portfolio moves
Oct 31, 2025 → Jan 31, 2026How many positions this fund opened, exited, grew, trimmed, or left unchanged between its two most recent N-PORT snapshots — net changes between point-in-time reports, not a trade log.
Similar funds
Funds whose portfolios most overlap this one, by weight| Fund | Overlap | Net exp. |
|---|---|---|
| Columbia U.S. Treasury Index Fund · LUTAX, IUTIX, CUTRX, CUTYX | 14% | 0.17% |
| State Street(R) SPDR(R) Portfolio Treasury ETF · SPTB | 14% | 0.03% |
| Bond Market Index Account | 14% | 0.15% |
Advisers
| Firm | Role |
|---|---|
| Principal Global Investors, LLC | Adviser |
Footnotes
- Expense ratio as of February 27, 2026, from the fund's prospectus.
- Net assets and holdings count as of January 31, 2026, from the fund's N-PORT filing.
- Total return for calendar year 2025, before tax and after fund expenses. Computed by compounding the twelve monthly total returns the fund reported in its SEC N-PORT filings for 2025 (the latest prospectus does not yet chart this year).
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