Investment objective & strategy
As of Dec. 23, 2025 · prospectusObjective. The Fund seeks to provide a high level of income that is exempt from federal income tax while protecting investors capital.
Strategy. Under normal circumstances, 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. Municipal obligations generally pay interest that is exempt from federal income tax. The Funds investment in municipal obligations include industrial revenue bonds. The Fund has a flexible investment strategy and invests in obligations of any duration and credit quality, including below-investment-grade bonds (sometimes called high yield bonds or junk bonds), which are rated at the time of purchase Ba1 or lower by Moodys Investors Service, Inc. (Moodys) and BB+ or lower by S&P Global Ratings (S&P Global). If the bond has … Under normal circumstances, 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. Municipal obligations generally pay interest that is exempt from federal income tax. The Funds investment in municipal obligations include industrial revenue bonds. The Fund has a flexible investment strategy and invests in obligations of any duration and credit quality, including below-investment-grade bonds (sometimes called high yield bonds or junk bonds), which are rated at the time of purchase Ba1 or lower by Moodys Investors Service, Inc. (Moodys) and BB+ or lower by S&P Global Ratings (S&P Global). If the bond has been rated by only one of the rating agencies, that rating will determine the bond's rating; if the bond is rated differently by the rating agencies, the highest rating will be used; and if the bond has not been rated by either of the rating agencies, those selecting such investments will determine the bond's quality. The Fund is not managed to a particular maturity or duration. The Fund also invests in inverse floating rate instruments, which are generally more volatile than other types of municipal obligations and may involve leverage, to enhance investment income.
Top holdings
As of Feb. 28, 2026 · N-PORT| Security | Ticker | Value | % of fund |
|---|---|---|---|
| P3 IRVINE SL HOLDINGS LLC OBLIGATED GROUP 6.5% 06-01-54 | CASMED | $4.88M | 2.63% |
| SLF CHP LLC 6.5% 07-01-56 | — | $4.20M | 2.26% |
| LOWER AL GAS DIST GAS PROJ REV LWRUTL 09/46 FIXED 5 | — | $3.66M | 1.97% |
| CITY OF ATLANTA GA WESTSIDE TAX ALLOCATION DISTRICT GULCH AREA 0.0% 12-15-48 | — | $3.64M | 1.96% |
| NEW YORK ST DORM AUTH REVENUES NON ST SUPPORTED DEBT | — | $3.35M | 1.80% |
| St. James (Parish of), LA (Nustar Logistics, L.P.), Series 2010 2, RB | — | $3.32M | 1.79% |
| ONEIDA INDIAN T 6% 9/1/2043 | ONEFAC | $3.28M | 1.76% |
| SUFFOLK REGL OFF-TRACK BETTING SUFFOLK REGIONAL OFF-TRACK BETTING CORP | SOBGEN | $3.07M | 1.65% |
| TUSCLSA AL GOZ 5.25% 5/1/2044 | TUSDEV | $3.04M | 1.64% |
| Mobile (County of), AL Industrial Development Authority (AM/NS Calvert LLC), Series 2024, RB | MOBPOL | $2.87M | 1.55% |
Portfolio moves
Nov 30, 2025 → Feb 28, 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. |
|---|---|---|
| Tax-Exempt Bond Fund · PTEAX, PTBCX, PITEX | 18% | 0.64% |
| Federated Hermes Municipal High Yield Advantage Fund · FMOAX, FMNCX, FHTFX, FMYIX | 9% | 0.79% |
| Lord Abbett High Income Municipal Bond Fund · HYMAX, HYMCX, HYMFX, HYMIX, HYMOX | 9% | 0.59% |
Advisers
| Firm | Role |
|---|---|
| Principal Global Investors, LLC | Adviser |
Footnotes
- Expense ratio as of December 23, 2025, from the fund's prospectus.
- Net assets and holdings count as of February 28, 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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