SRHQX

Principal Short-Term Income Fund

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Prospectus
Enhanced fact sheet

    Principal Short-Term Income Fund

    Highlights

    A true, high-quality, short-term bond fund that aims to provide a high level of income and stable principal

    • 18- to 24- month investment horizon to capitalize on value opportunities and minimize trading costs.
    • Independent credit research with a bias towards issuers with a margin of safety.
    • A bond ladder consisting of corporate credit, ABS, and agencies.

    Fund details

    as of 12/10/2024 unless indicated otherwise
    Fund ticker
    SRHQX
    CUSIP
    74254V562
    Benchmark
    Bloomberg Credit 1-3 Year Index
    NAV
    $12.03
    Total fund assets
    $3.2B
    Dividend frequency
    Daily
    Minimum investment
    $1,000.00
    Inception date
    11/01/1993
    Morningstar category
    Short-Term Bond
    Investment approach
    The investment seeks as high a level of current income as is consistent with prudent investment management and stability of principal. The fund invests primarily in high quality short-term bonds and other fixed-income securities that, at the time of purchase, are rated BBB- or higher by S&P Global or Baa3 or higher by Moody's. It maintains an effective maturity of five years or less and an average portfolio duration that is within ±30% of the duration of the Bloomberg Credit 1-3 Year Index.

    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 0.56% 0.73% 4.84% 6.30% 2.09% 1.86% 1.90% 3.38% —
    Including sales charge -1.74% -1.56% 2.50% 3.90% 1.33% 1.40% 1.66% 3.30% —
    Benchmark performance
    Bloomberg Credit 1-3 Year Index
    		0.45% 0.86% 4.91% 6.27% 2.18% 2.07% 2.09% — —
    Morningstar category average
    Short-Term Bond
    		 0.60% 0.83% 5.11% 6.80% 1.82% 1.97% 1.93% — —
    Morningstar percentile rankings — — — 61 36 55 52 — —
    # of funds in category 562 560 552 550 514 482 363 — 514
    Morningstar rating — — — — —
    30 Day SEC yield
    Unsubsidized as of 11/30/2024
    3.94%
    30 Day SEC yield
    Subsidized as of 11/30/2024
    3.94%
    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
    514 funds
    5-year
    482 funds
    10-year
    363 funds
    Overall
    514 funds
    3 year | 514 funds
    5 year | 482 funds
    10 year | 363 funds
    Overall | 514 funds

    Holdings

    Top 10

    as of 10/31/2024
    % of Assets
    % of Assets
    1. Principal Government Money Market Fund - Class R-6
    5.18%
    2. United States Treasury Note/Bond
    3.86%
    3. United States Treasury Note/Bond
    2.58%
    4. United States Treasury Note/Bond
    2.09%
    5. United States Treasury Note/Bond
    1.67%
    6. CF Hippolyta Issuer LLC
    0.85%
    7. United States Treasury Note/Bond
    0.85%
    8. HCA Inc
    0.62%
    9. Marathon CLO XIII Ltd
    0.59%
    10. Vistra Operations Co LLC
    0.58%
    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
    2.51
    # of holdings
    as of 11/30/2024
    360
    Average weighted coupon
    as of 11/30/2024
    4.21%
    Average yield to maturity
    as of 11/30/2024
    5.02%
    Turnover ratio
    as of 04/30/2024
    52.10%
    Weighted avg duration
    as of 11/30/2024
    1.97
    Weighted avg life to worst
    as of 11/30/2024
    2.39
    Yield to worst
    as of 11/30/2024
    4.98%
    May not reflect current holdings or allocations.

    Portfolio management

    John R. Friedl, CFA
    26 years of experience
    Michael Goosay
    33 years of experience
    Scott J. Peterson, CFA
    35 years of experience
    Scott J. Peterson, CFA
    35 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 Bloomberg US 1-3 Year Index measures the performance of investment grade, US dollar-denominated, fixed-rate, taxable corporate and government-related debt with 1 to 2.9999 years to maturity. It is composed of a corporate and a non-corporate component that includes non-US agencies, sovereigns, supranationals and local authorities. (Future Ticker: I00642US)
    © 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.
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