UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
FORM N-CSR/A
CERTIFIED SHAREHOLDER REPORT OF REGISTERED
MANAGEMENT INVESTMENT COMPANIES
Investment Company Act file number | 811-07572 |
Principal Funds, Inc. |
(Exact name of registrant as specified in charter)
801 Grand Avenue, Des Moines, IA 50309 |
(Address of principal executive offices) (Zip code)
Principal Global Investors, LLC, 801 Grand Avenue, Des Moines, IA 50309 |
(Name and address of agent for service)
Registrant’s telephone number, including area code: | 515-248-0156 |
Date of fiscal year end: | August 31, 2019 |
Date of reporting period: | August 31, 2019 |
Form N-CSR is to be used by management investment companies to file reports with the Commission not later than 10 days after the transmission to stockholders of any report that is required to be transmitted to stockholders under Rule 30e-1 under the Investment Company Act of 1940 (17 CFR 270.30e-1). The Commission may use the information provided on Form N-CSR in its regulatory, disclosure review, inspection, and policymaking roles.
A registrant is required to disclose the information specified by Form N-CSR, and the Commission will make this information public. A registrant is not required to respond to the collection of information contained in Form N-CSR unless the Form displays a currently valid Office of Management and Budget ("OMB") control number. Please direct comments concerning the accuracy of the information collection burden estimate and any suggestions for reducing the burden to Secretary, Securities and Exchange Commission, 100 F Street, NE, Washington, DC 20549. The OMB has reviewed this collection of information under the clearance requirements of 44 U.S.C.
§ 3507.
EXPLANATORY
NOTE
The Registrant is filing this amendment (the “Amendment”) to its Certified Shareholder Report on Form N-CSR filed with the Securities and Exchange Commission on October 29, 2019 (the “Report”). The purpose of this Amendment is to replace Item 1 “Report to Stockholders” for the Opportunistic Municipal Fund with respect to the information under the heading “What contributed to or detracted from Fund performance during the fiscal year?” The original filing inadvertently contained a discussion of a different fund in the referenced section.
Except as otherwise noted above, the Report was accurate, timely distributed to shareholders and contained all information required to be included in such reports by the Registrant’s registration statement form under the Investment Company Act of 1940, as amended, pursuant to Rule 30e-1(a) thereunder.
This Amendment should be read in conjunction with the Report. Except for the portion of Item 1 noted above, this Amendment does not reflect events occurring after the filing of the Report, or modify or update the Report in any way.
ITEM 1 – REPORT TO STOCKHOLDERS
1
Opportunistic
Municipal
Fund
Investment
Advisor:
Principal
Global
Investors,
LLC
Performance
of
other
share
classes
will
differ.
Average
Annual
Total
Returns*
as
of
August
31,
2019
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
Opportunistic
Municipal
Fund
seeks
to
provide
a
high
level
of
income
that
is
exempt
from
federal
income
tax
while
protecting
investors'
capital.
The
Fund
invests
at
least
80%
of
its
net
assets,
plus
any
borrowings
for
investment
purposes,
in
municipal
obligations
(securities
issued
by
or
on
behalf
of
state
or
local
governments
and
other
public
authorities).
It
invests
in
other
debt
obligations,
including
(but
not
limited
to)
taxable
municipal
obligations,
U.S.
Treasury
securities,
obligations
of
the
U.S.
government,
its
agencies
and
instrumentalities
("Agency
Securities")
and
exchange-traded
funds
(ETFs)
to
gain
exposure
to
the
municipal
market.
Allocation
to
Salt
Verde
Financial
Corp,
Atlanta
Development
Authority
Healthcare
Facs,
and
Lower
Alabama
Gas
Rev
contributed.
Allocation
to
Harris
County
Cultural
Education
Corp,
Illinois
Finance
Authority
Multifamily,
and
Florida
Development
Finance
Corp
detracted.
Value
of
a
$10,000
Investment*
June
14,
2012
-
August
31,
2019
1-Year
5-Year
Since
Inception
Inception
Date
Extended
Performance
Inception
Date
Institutional
Shares
10.55%
6.35%
5.85%
3/10/15
6/14/12
*
Extended
performance
is
calculated
based
on
the
historical
performance
of
the
Fund’s
Class
A
Shares,
adjusted
for
the
fees
and
expenses
of
the
share
class
shown.
2
Opportunistic
Municipal
Fund
Investment
Advisor:
Principal
Global
Investors,
LLC
What
contributed
to
or
detracted
from
Fund
performance
during
the
fiscal
year?
Opportunistic
Municipal
Fund
seeks
to
provide
a
high
level
of
income
that
is
exempt
from
federal
income
tax
while
protecting
investors'
capital.
The
Fund
invests
at
least
80%
of
its
net
assets,
plus
any
borrowings
for
investment
purposes,
in
municipal
obligations
(securities
issued
by
or
on
behalf
of
state
or
local
governments
and
other
public
authorities).
It
invests
in
other
debt
obligations,
including
(but
not
limited
to)
taxable
municipal
obligations,
U.S.
Treasury
securities,
obligations
of
the
U.S.
government,
its
agencies
and
instrumentalities
("Agency
Securities")
and
exchange-traded
funds
(ETFs)
to
gain
exposure
to
the
municipal
market.
Allocation
to
Salt
Verde
Financial
Corp,
Atlanta
Development
Authority
Healthcare
Facs,
and
Lower
Alabama
Gas
Rev
contributed.
Allocation
to
Harris
County
Cultural
Education
Corp,
Illinois
Finance
Authority
Multifamily,
and
Florida
Development
Finance
Corp
detracted.
*
Securities
described
in
the
fund
commentary
may
no
longer
be
held
in
the
fund
3
Performance
of
other
share
classes
will
differ.
Investment
results
shown
represent
historical
performance
and
do
not
guarantee
future
results.
Your
investment’s
returns
and
principal
values
will
fluctuate
with
changes
in
interest
rates
and
other
market
conditions
so
the
value,
when
redeemed,
may
be
worth
more
or
less
than
original
costs.
Current
performance
may
be
lower
or
higher
than
the
performance
shown.
For
more
information,
including
the
most
recent
month-end
performance,
visit
principalfunds.com,
call
your
financial
professional,
or
call
800-222-
5852.
A
sales
charge
may
apply
as
follows:
Class
A
shares:
maximum
up-front
sales
charge
of
3.75%.
See
the
prospectus
for
details.
Performance
listed
with
sales
charge
reflects
the
maximum
sales
charge.
Where
gross
and
net
expenses
differ,
Principal
Global
Investors,
LLC
has
contractually
agreed
to
limit
the
investment
option’s
expenses.
See
the
prospectus
for
details.
Returns
displayed
are
based
on
net
total
investment
expense.
Average
Annual
Total
Returns*
as
of
August
31,
2019
Total
Investment
Expense
as
shown
in
the
12/31/18
prospectus
Value
of
a
$10,000
Investment*
June
14,
2012
-
August
31,
2019
1-Year
5-Year
Since
Inception
Inception
Date
Class
A
Shares
Excluding
Sales
Charge
10.36%
6.10%
5.69%
6/14/12
Including
Sales
Charge
6.25%
5.30%
5.14%
Gross
Expense
Ratio
Net
Expense
Ratio
Class
A
Shares
1.02%
0.94%
Average
annual
total
returns*
including
sales
charge
as
of
6/30/19:
Class
A
Shares:
3.96%
(1-year);
5.08%
(5-year);
4.84%
(since
inception)
*
Performance
assumes
reinvestment
of
all
dividends
and
capital
gains.
Performance
does
not
reflect
the
impact
of
federal,
state,
or
municipal
taxes.
If
it
did,
performance
would
be
lower.
**
Net
asset
value
is
not
adjusted
for
sales
charge.
***
Performance
shown
for
the
benchmark
is
calculated
from
5/31/12
and
assumes
reinvestment
of
all
dividends
and
distributions.
Indices
are
unmanaged,
and
individuals
cannot
invest
directly
in
an
index.
ITEM 13 – EXHIBITS
(a)(1) Code of Ethics required to be disclosed under Item 2 of Form N-CSR attached hereto as Exhibit 99.CODE ETH.
(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act are attached hereto as Exhibit 99.CERT.
(b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(b) under the Investment Company Act is attached hereto as Exhibit 99.906CERT.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
(Registrant) | Principal Funds, Inc. |
By | /s/ Kamal Bhatia |
Kamal Bhatia, President and CEO
Date | 6/2/2020 |
Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.
By | /s/ Kamal Bhatia |
Kamal Bhatia, President and CEO
Date | 6/2/2020 |
By | /s/ Tracy W. Bollin |
Tracy W. Bollin, Chief Financial Officer
Date | 6/2/2020 |