Diversified Income Fund
Principal Funds, Inc · 4 share classes
Fund classification
Classified from what the fund holds · as of 2026 Q2
Diversified Income Fund is an actively managed U.S. bond fund.
- Asset class
- Bonds
- Region
- United States
- Management
- Actively managed
- Fund type
- Open-end fund
- Credit quality
- Investment grade
Fund profile
As filed in the prospectus · 2026 Q1
The Fund seeks income.
The fund invests in a diversified portfolio of fixed-income securities selected by multiple sub-advisors under strategic allocations set by the principal adviser. Holdings span investment-grade and high-yield corporate bonds, preferred securities, emerging market debt, securitized products, and derivatives used to manage exposure and hedge currency risk. Because day-to-day management is delegated to multiple sub-advisors with varying strategies and allocations that may shift substantially, the fund's actual composition and risk profile can change materially over time.
| Share class | Gross | Net |
|---|---|---|
| PGDIX | 0.82% | 0.73% |
| PGBAX | 1.07% | 1.07% |
| PGDCX | 1.84% | 1.84% |
| PGBLX | 0.76% | 0.73% |
Net is what a holder pays after the adviser's contractual waiver; gross is before it. A waiver can expire.
Portfolio turnover 92.90% · as of 2026 Q1
Allocation
Asset groups · long / short shown separately, never netted · 2026 Q2
| Bonds | 74.21% |
| Securitized | 11.17% |
| Loans | 7.17% |
| Cash & short-term | 5.80% |
| 2 smaller | 2.81% |
Look-through blends 4 underlying funds; 0.231% of NAV was not looked through and stays direct-classified.
Sector allocation
The same holdings as Allocation above, grouped by market sector instead of asset type · as of 2026 Q2
| Other | 31.8% |
| International | 17.2% |
| Securitized | 11.2% |
| Financials | 10.8% |
| 12 smaller | 28.9% |
Government, Securitized and Cash are non-corporate buckets; International is foreign holdings we don’t sector-classify, and Other is the residual (held funds, unresolved names).
Latest quarter
What changed since the fund's previous filing
Largest new: United States Treasury Floating Rate Note, Meridian Arc Holdco LLC, The Charles Schwab Corp, DRC International Bond, Ginnie Mae, Fannie Mae or Freddie Mac, United States Treasury Bill, Dexko Global Inc
Largest exited: United States Treasury Bill, United States Treasury Floating Rate Note, SPX FLOW Inc, Asurion LLC Term Loan B3, Zurich Finance Ireland Designated Activity Co, Oscar AcquisitionCo LLC / Oscar Finance Inc, Oxford Finance LLC / Oxford Finance Co-Issuer II Inc, Ginnie Mae II Pool
Return profile
Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026
| Share class | 1-year | 3-year | 5-year | Vol | Worst fall |
|---|---|---|---|---|---|
| +4.73% | +18.28% | +12.72% | 3.31% | -3.29% | |
| +4.35% | +17.11% | +10.86% | 3.24% | -3.44% | |
| +3.61% | +14.45% | +6.70% | 3.26% | -3.55% | |
| +4.73% | +18.47% | +12.91% | 3.27% | -3.29% |
These classes hold the same portfolio, so the 6.22pp spread over 5 years is the cost difference between them — roughly 1.24pp a year — not a difference in what they own.
Debt profile
What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-04-30
Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.
| Fixed rate | 69.9% |
| Floating rate | 28.9% |
| Zero-coupon or unclassified | 1.2% |
Share of the fund's debt value in each maturity band, shortest first.
| <1y | 2.2% |
| 1-3y | 12.0% |
| 3-5y | 21.3% |
| 5-10y | 33.0% |
| 10y+ | 25.9% |
| Unknown | 5.6% |
These three overlap — one holding can be in arrears and paying in kind at once — so they are shown separately and never summed.
Risk profile
Interest-rate and credit-spread sensitivity, both in years · as of 2026Q2
This fund carries a net credit hedge: it would gain roughly ≈ 0% if credit spreads widened 100bp, where a comparable bond fund would lose.
Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.
| 10 yr | 0.01 yr | 100% |
3 mo and 1 yr and 5 yr and 30 yr are NEGATIVE (-0.00 yr, -0.03 yr, -0.04 yr, -0.09 yr) — a deliberate hedge at that point on the curve, so they are not part of the band above.
| 10 yr | 0.02 yr | 100% |
3 mo and 1 yr and 5 yr and 30 yr are NEGATIVE (-0.00 yr, -0.03 yr, -0.04 yr, -0.07 yr) — a deliberate hedge at that point on the curve, so they are not part of the band above.
The two bands measure the same positions against different shocks and do not add — a Treasury carries rate duration and no spread duration, a floating-rate credit the reverse. Rate tenors are also summed across every currency the fund discloses.
Show the numbers
| Tenor | Rate yrs | IG yrs | HY yrs | IG $/bp | HY $/bp |
|---|---|---|---|---|---|
| 3 mo | -0.00 | +0.00 | -0.00 | $103 | -$144 |
| 1 yr | -0.03 | -0.00 | -0.02 | -$611 | -$5.4k |
| 5 yr | -0.04 | -0.03 | -0.02 | -$5.7k | -$3.9k |
| 10 yr | +0.01 | -0.01 | +0.03 | -$1.7k | $6.8k |
| 30 yr | -0.09 | -0.07 | -0.00 | -$15.7k | -$741 |
Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.
Duration contribution in years, summing to the fund's -0.14 yr.
This is where the fund's rate exposure sits, not its currency risk — most international bond funds hedge the currency back to dollars, and the size of those hedges is not in the filing. Tenors are also summed across curves, so a 5-year JPY point and a 5-year USD point are added together.
Holdings
By % of NAV · equity positions carry filed share counts · every resolvable issuer links to its company page
| Ticker | Issuer | %NAV | Reported price | Value | Shares |
|---|---|---|---|---|---|
| — | Principal Funds, Inc - Government Money Market Fund - Class R-6 | 4.88% | — | $106.93M | — |
| — | iShares Broad USD High Yield Corporate Bond ETF | 2.01% | $37.23 | $44.10M | 1.2M |
| — | Specialty Steel12.00% floating · due 2033-11-15 | 1.07% | — | $23.44M | — |
| — | Real Alloy Holding Inc | 0.70% | $51,372.14 | $15.39M | 299.57 |
| — | N/A | 0.53% | — | $11.70M | — |
| — | Baffinland Iron Mines Corp / Baffinland Iron Mines LP8.75% · due 2026-07-15 | 0.51% | — | $11.06M | — |
| — | Engineered Machinery Holdings Inc Term Loan9.96% floating · due 2029-05-21 | 0.48% | — | $10.61M | — |
| — | AthenaHealth Group Inc6.50% · due 2030-02-15 | 0.47% | — | $10.28M | — |
| — | Beach Acquisition Bidco LLC10.00% floating · due 2033-07-15 | 0.45% | — | $9.78M | — |
| — | Hungary Government Bond4.50% · due 2028-03-23 | 0.44% | — | $9.60M | — |
Reported price is the fund's own reported value divided by its own reported shares at 2026-04-30 — not a live quote, and not what the fund paid.
Top 10 positions are 11.55% of net assets, top 25 16.28%, across 1.8K issuers.
See more of this fund's book
More positions with filed share counts, and the quarter-over-quarter change list rather than the largest few — free with an account, no card required.
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