Return-Focused Investment Options
Return-focused strategy

Help your clients diversify, preserve capital, and generate income with return-focused investment options.

Principal Short-Term Income

Principal Short-Term Income investment options seek a high level of current income that’s consistent with sensible investment management and stability of principal. It’s mostly made up of short duration investment grade corporate bonds using non-index positions in structured products and U.S. government agency bonds. It avoids volatile sectors such as high yield or emerging markets and derivatives.

Like other market value products, the returns change daily with the fluctuation of underlying securities.

Competitive environment

Principal Short-Term income is competitive against shorter duration products (i.e., money market or ultra-short funds) in declining interest rate environments. It is also competitive against longer duration products (i.e., intermediate or long-term funds) in rising interest rate environments.

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Principal Core Plus Bond

Principal Short-Term Income investment options seek a high level of current income that’s consistent with sensible investment management and stability of principal. It’s mostly made up of short duration investment grade corporate bonds using non-index positions in structured products and U.S. government agency bonds. It avoids volatile sectors such as high yield or emerging markets and derivatives.

Like other market value products, the returns change daily with the fluctuation of underlying securities.

Competitive environment

Principal Core Plus Bond is competitive against intermediate-duration, multi-sector fixed income options. It also seeks to maintain an inherent yield advantage vs.
shorter duration products by carrying additional interest rate risk. (Typically higher yields compensate for longer duration.)

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Principal Core Fixed Income

The Principal Core Fixed Income investment option seeks to provide a strong level of current income consistent with preserving capital over time by primarily investing in a diversified pool of fixed-income securities. This includes a focus on corporate bonds, both investment-grade and below-investment grade.

Like other market value products, the returns change daily with the fluctuation of underlying securities.

Competitive environment

Principal Core Fixed Income is competitive against intermediate-duration products when market performance is driven by underlying fundamentals and its strategy is designed to enhance performance when interest rates rise. Its research focuses on avoiding downgrades and companies with weak fundamentals. This provides limited exposure to highly volatile companies.

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Learn more

To get started, contact your local Principal® representative or support team:

Call us at  800-952-3343

Email our Advisor Support Team

See related linked documents for "Important Information."

Insurance products and plan administrative services provided through Principal Life Insurance Co. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities offered through Principal Securities, Inc., 800-547-7754, member SIPC and/or independent broker-dealers. Principal Funds Distributor, Inc. and Principal Securities® are members of the Principal Financial Group®, Des Moines, Iowa 50392. Certain investment options may not be available in all states or U.S. commonwealths.