Principal Funds (9) 367 Familes, 1004 Interview Based Profiles

Principal SmallCap Fund

Although financial markets are inherently fragile, companies that provide improving customer experience through positive change are bound to generate wealth for shareholders. Philip Nordhus, portfolio manager of the Principal SmallCap Fund, and a team of analysts look to identify early on companies with such characteristics and with the potential to generate enduring growth rates and profitability.

$700 million

Principal Real Estate Securities Fund

With decades of experience in real estate, the Principal Real Estate Securities Fund relies on a dedicated and consistent team. Kelly D. Rush, who has managed the fund since inception, believes in diversifying sources of alpha, with security selection being a key factor in this process.

$4.5 billion

Principal International Small Company Fund

Principal International Small Company Fund avoids excessive style biases by following a process that identifies companies that are not well understood by the market. Recognizing the distinction between a good company and a good investment, portfolio manager Tiffany Lavastida explains how the management team seeks to capitalize on market inefficiencies. 

$1.02 billion

Principal International Emerging Markets Fund

A process focused on identifying positive change requires disciplined research, especially when it comes to fully understanding the capital allocation model of a business. Mohammed Zaidi explains how the portfolio managers of the Principal International Emerging Markets Fund and a team of analysts combine fundamental analysis and behavioral finance disciplines in detecting and selecting companies undergoing change not recognized by the market. 

$977 million

Principal Short-Term Income Fund

For investors looking for better returns than cash, bonds with short maturities appear to be a viable option. Hundreds of large and smaller companies offer short-term bond investment opportunities that, if selected prudently, could add stability to one’s portfolio. Greg Tornga, portfolio manager of the Principal Short-Term Income Fund, benefits from EDGE’s analytical input to unearth bonds and companies that will provide consistency of returns. 

$2.8 billion

Principal Equity Income Fund

Daniel Coleman, Portfolio Manager of Principal Equity Income Fund, believes that stock investing comes down to selecting good businesses. The true challenge, however, is identifying such companies and having the patience to invest when they are out of favor. With an investment process driven by extensive research, the fund selects companies with competitive advantages, rising dividends, and solid fundamentals, and buys them only when market misconceptions bring down the price.

$5.48 billion

Principal SmallCap Blend Fund

As a research intensive effort, small-cap investing requires investors to have a systematic and behavioral process that separates good investments from good companies. Phil Nordhus, portfolio manager of the Principal SmallCap Blend Fund, and his team of analysts utilize a ranking process to identify companies undergoing a long-term positive change that is not fully recognized in the market.

$700 million

Principal Income Fund

Corporate bonds can be lucrative for disciplined investors with a systematic valuation model applicable to sectors and businesses. Gregory L. Tornga and his team of analysts at Edge Asset Management, the sub-advisor to the Principal Income Fund, drill down sectors to find out-of-favor companies whose management teams have a history of enduring through various business cycles.

The Worldly Investor

September 18, 2006

Principal Investors Diversified International Fund

Investing abroad requires an understanding of companies, countries and economic cycles. Using quantitative metrics, the Principal Investors Diversified International Fund finds companies at the early stage of earnings growth and not yet on investors’ radar. The fund spreads its bets across 25 countries. A team of global researchers discover small and large companies in the developed and emerging markets.