The Fund’s investment objective is to seek high current income and, secondarily, capital appreciation.
HIGH YIELD MARKET VETERANS
Strategic Income Management, LLC (SiM), the Fund’s sub-advisor, is an independent employee owned firm, specializing in high yield bond and asset allocation strategies.
- Gary Pokrzywinski, CFA, Chief Investment Officer, Portfolio Manager, 26 years experience; managed the Principal High Yield Mutual Fund from its inception in April 1998 to May 2009
- Brian Placzek, CFA, Director of Research — High Yield, 26 years experience
FOCUS ON INDUSTRIES
The Fund has a long-term focus, centered on multi-year secular themes. In selecting investments for the Fund, SiM combines different aspects of top-down and bottom-up analysis.
- SiM believes understanding industry dynamics is critical to their success.
- SiM uses a defined process to evaluate out-of-favor sectors and industries. Historically, they have found the better quality company in the out-of-favor sector offers the best risk/reward value.
- The Fund may hold non-traditional high yield investments and investments across the entire capital structure of a company.
HIGH YIELD OUTPERFORMS
Over the past decade, high yield bonds have outperformed both stocks and investment-grade bonds, U.S. Treasuries and mortgages.
|Strategic Income Management, LLC||