Request URL: https://www.principal.com/InvestmentProfiles/risksAndRatings.faces
Investment Type: pif

Global Multi-Strategy Fund (A) (PMSAX)

Risk and Return Statistics   as of 02/28/2025 Relative to HFRX Global Hedge Fund Index Stat3 Year5 Year Alpha 3.46 1.71 Beta 1.42 1.19 R-squared 65.09 78.49 Standard Deviation 4.79 6.01 Mean 4.88 5.10 Sharpe Ratio 0.10 0.41 Excess Return 2.59 1.81 Tracking Error 3.00 2.92 Information Ratio 0.86 0.62 Inception Date: 10/24/2011 Risk and return statistical data is calculated by Morningstar, Inc. Excess Return is calculated by Principal Life Insurance Company.

Morningstar Star Rating™   as of 03/31/2025    What's this? Rating # Funds 3 Year 110 5 Year 101 10 Year 59 Overall 110 Morningstar Category:Multistrategy Morningstar's Star Ratings reflect risk adjusted performance and are derived from a weighted average of the performance figures associated with its three, five, and ten-year (if applicable) time periods.

Alpha- Alpha measures the difference between an investment's actual returns and its expected performance, given its level of risk (as measured by beta). A positive alpha figure indicates that the investment has performed better than expected. In contrast, a negative alpha indicates that an investment has underperformed, given the expectations established by the investment's beta. Many investors see alpha as a measurement of the value added or subtracted by an investment's manager.

Beta- Beta is a measure of an investment's sensitivity to market movements. It measures the relationship between an investment's excess return over T-bills and the excess return of the benchmark index. By definition, the beta of the benchmark (in this case, an index) is 1.00. Accordingly, an investment with a 1.10 beta has performed 10% better than its benchmark index - after deducting the T-bill rate - than the index in up markets and 10% worse in down markets, assuming all other factors remain constant. Conversely, a beta of 0.85 indicates that the investment has performed 15% worse than the index in up markets and 15% better in down markets. A low beta does not imply that the investment has a low level of volatility, though; rather, a low beta means only that the investment's returns do not move in step with the chosen index.

R-Squared- R-squared ranges from 0 to 100 and reveals how closely an investment's returns track those of a benchmark index. An R-squared of 100 means that all movements of an investment are completely correlated with movements in the index. For example, mutual funds that invest only in S&P 500 stocks will have an R-squared very close to 100 relative to the S&P 500 index. Conversely, a low R-squared indicates that very few of the investment's movements are explained by movements in its benchmark index.

Standard Deviation- Standard deviation is a statistical measure of how much an investment's returns are likely to fluctuate. These ranges assume that an investment's returns fall in a typical bell-shaped distribution. In any case, the greater the standard deviation, the greater the volatility. When an investment has a high standard deviation, its range of performance has been very wide, indicating that there is a greater potential for volatility.

Mean- Represents the annualized total return for a fund over a certain time period; usually in years.

Sharpe Ratio- Measures how an investment balances risks and rewards. The higher the Sharpe ratio, the better the investment's historical risk-adjusted performance. The Sharpe ratio is a measure developed by Nobel Laureate William Sharpe to evaluate how an investment balances risks and rewards. The higher the Sharpe ratio, the better the investment's historical risk-adjusted performance. It is calculated using standard deviation and excess return to determine reward per unit of risk. First, the average monthly return of the 90-day Treasury bill (over the defined time period) is subtracted from the investment's average monthly return. The difference in total return represents the investment's excess return beyond that of the 90-day Treasury bill, a risk-free investment. An arithmetic annualized excess return is then calculated by multiplying this monthly return by 12. To show a relationship between excess return and risk, this number is divided by the standard deviation of the investment's annualized excess returns.

Excess Return- The difference between an investment option's return and the return of an external standard such as a passive index.

Tracking Error- Also known as "excess risk," defined as the standard deviation or volatility of excess returns.

Information Ratio- A risk-adjusted measure commonly used to evaluate an active manager's involvement skill. It's defined as the manager's excess return divided by the variability or standard deviation of the excess return.

© 2025 Morningstar, Inc. All Rights Reserved. Part of the mutual fund data 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. Carefully consider the Fund's objectives, risks, charges, and expenses. Contact your financial professional or visit principal.com for a prospectus, or summary prospectus if available, containing this and other information. Please read it carefully before investing. For information on this or other investment options, visit principal.com, or call 800-547-7754. Sub-advised Investment Options include Principal Funds, Inc. mutual funds. Principal Funds, Inc is distributed by Principal Funds Distributor, Inc. A mutual fund's share price and investment return will vary with market conditions, and the principal value of an investment when you sell your shares may be more or less than the original cost. See the Principal Funds, Inc. prospectus for the full name of each Fund. Investment and Insurance products are: * Not insured by the FDIC or Any Federal Government Agency * Not a Deposit or Other Obligation of, or Guaranteed by Credit Union or Bank * Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested For a Mutual Fund investment option, Total Investment Expense gross equals the sum of (a) the total fund operating expenses plus (b) if the mutual fund invests in other mutual funds, the weighted-average management fee of those other mutual funds, as listed in the most recent prospectus. The actual Total Investment Expense may change if the mutual fund investment option's allocation of assets to other mutual funds changes. Any operating expenses of a mutual fund or underlying mutual fund that are part of net Total Investment Expense are obtained from the mutual fund's most recent prospectus. The operating expenses shown as part of net Total Investment Expense include voluntary expense limits and fee credit. Investment Options may charge a short-term trading or redemption fee to protect the interests of long-term Contractholders. If an investment provider chooses not to participate in the Principal® Platform Connectivity Program (Program), your Plan may be charged an annual Program fee of $1,000 to be included as part of your Principal® recordkeeping fee. This Program fee helps to pay for a number of expenses incurred in connection with maintaining and adding investment options to our platform, including but not limited to, expenses for IT systems and staffing needs and required legal and compliance services. The appropriate plan fiduciary may remove the investment option(s) associated with the Program fee, at any time, by contacting Principal with the investment option change. Changes related to the plan's investment options could change overall plan fees. Insurance products and plan administrative services provided through Principal Life Insurance Company®. Securities offered through Principal Securities, Inc., 800-547-7754, member SIPC and/or independent broker-dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, IA 50392. Certain investment options and contract riders may not be available in all states or U.S. commonwealths. Investing involves risk, including possible loss of principal. Fees and expenses are only one of several factors that participants and beneficiaries should consider when making investment decisions. The cumulative effect of fees and expenses can substantially reduce the growth of a participant's or beneficiary's retirement account. Participants and beneficiaries can visit the Employee Benefit Security Administration's website for an example demonstrating the long-term effect of fees and expenses. Various mutual funds may have different types of fees disclosed in their prospectus, including sales loads (sales charge), exchange fees, account fees and purchase fees. The mutual funds made available by Principal Life Insurance Company for retirement plans through the Mutual Fund Network typically have many of these fees waived. Please review the Prospectus of the particular mutual fund, including the Statement of Additional Information, for a full understanding of the fees imposed by that mutual fund. Be sure to pay attention to the specific share class made available under the retirement plan because different share classes may have vastly different fee structures and schedules. Several investment companies have decided to impose redemption fees and/or transfer restrictions on certain plan and/or participant transactions. One or more of the investment options in your employer's retirement plan may be impacted. For more information, log into your account and visit us at at principal.com. The risks associated with derivative investments include that the underlying security, interest rate, market index, or other financial asset will not move in the direction the Investment Adviser and/or Sub-Advisor anticipated, the possibility that there may be no liquid secondary market, the risk that adverse price movements in an instrument can result in a loss substantially greater than a fund's initial investment, the possibility that the counterparty may fail to perform its obligations; and the inability to close out certain hedged positions to avoid adverse tax consequences. This Fund uses alternative strategies such as arbitrage, leverage, derivatives and shorting securities. Long/short investing does not guarantee lower risk associated with equity markets, capitalization, sector swings or other factors and may have higher turnover with additional tax consequences. Short selling risks include investment loss and added costs to cover short positions. International investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards. Use of alternative strategies may magnify risk. Securities such as bonds, equities, international and emerging market securities, and currencies are subject to risks associated with market and interest rate movements. The Fund is non-diversified and may be more susceptible to price volatility if the Fund does not meet its objective. Investors should not expect significant outperformance during market rallies. Additional risks are included in the Fund's prospectus.