Multi-Cap
Core

Principal International Equity Index Fund

The fund seeks capital appreciation in the long term by investing in companies across any size outside the United States.

The investment process starts with a list of companies in the benchmark index and the research team utilizes quantitative techniques and fundamental analysis to identify investment opportunities.

Next, the research team employs a passive investment approach to track the performance of the Index.

In addition, the team utilizes a replication strategy which involves investing in the securities that make up the Index, in the same approximate proportions as the Index.

Then the manager constructs a portfolio of stocks from a list of companies favored by the research team and allocates capital based on its conviction level.

In addition, the fund will not invest more than 25% of its net assets in a particular industry except to the extent the Index is so concentrated.

Also, the fund utilizes exchange-traded funds and derivative strategies to gain exposure to the Index in an effort to minimize tracking error relative to the benchmark.

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