High Yield Fund

Principal Funds, Inc · 4 share classes

Actively managed U.S. bond fund
One fund, 4 share classes:CPHYXCCHIXPHYTXPHYFX
$6.43B NAV
448 positions · as of 2026-04-30 · filed 2026-06-25

Fund classification

Classified from what the fund holds · as of 2026 Q2

High Yield 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
High yield
Rate sensitivity
Short duration

Fund profile

As filed in the prospectus · 2026 Q1

The Fund seeks to provide a high level of current income.

Strategy · summarised

The fund invests at least 80% of assets in below-investment-grade bonds and bank loans rated Ba1 or lower by Moody's or BB+ or lower by S&P Global, selecting securities that meet these thresholds to generate high current income. It also holds investment-grade bank loans and foreign securities. Because security selection depends on ratings assigned by external agencies, the fund's holdings will shift when those ratings change.

Expenses
0.52% 1.69%across 4 share classes
Share classGrossNet
CPHYX0.90%0.90%
CCHIX1.69%1.69%
PHYTX0.62%0.61%
PHYFX0.52%0.52%

Net is what a holder pays after the adviser's contractual waiver; gross is before it. A waiver can expire.

Portfolio turnover 40.30% · as of 2026 Q1

Allocation

Asset groups · long / short shown separately, never netted · 2026 Q2

100.76%
of net assets
Bonds91.72%
Loans5.01%
Cash & short-term4.01%
Stocks0.03%
Derivatives0.00%

Look-through blends 1 underlying fund; 0.0% of NAV was not looked through and stays direct-classified. The blend is as of 2025Q4, one or more quarters before the direct holdings (2026Q2).

Sector allocation

The same holdings as Allocation above, grouped by market sector instead of asset type · as of 2026 Q2

100%
of net assets
Other50.0%
International17.3%
Financials5.0%
Consumer Discretionary4.6%
10 smaller23.0%

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

2026Q2 vs 2026Q1: 47 new40 exited

Largest new: AMC Global Media Inc, Black Pearl Compute LLC, SV RNO Property Owner 1 LLC, Meridian Arc Holdco LLC, TransDigm Inc ×2, PR RNO Property Owner 1 LLC, RXO Inc

Largest exited: United States Treasury Note/Bond, Lightning Power LLC, Archrock Partners LP / Archrock Partners Finance Corp, ams-OSRAM AG, AMC Networks Inc, Vistra Operations Co LLC, The Michaels Cos Inc, Madison IAQ LLC

Return profile

Chart:

Total return as filed — price change plus distributions reinvested · trailing figures to Apr 2026

Share class1-year3-year5-yearVolWorst fall
+7.34%+24.09%+22.32%2.88%-2.33%
+6.35%+20.98%+17.45%2.83%-2.43%
+7.54%+24.87%+24.01%2.86%-2.30%
+7.66%+25.25%+24.58%2.84%-2.29%

These classes hold the same portfolio, so the 7.13pp spread over 5 years is the cost difference between them — roughly 1.43pp a year — not a difference in what they own.

Cumulative return· May 2023 – Apr 2026

Debt profile

What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-04-30

Avg coupon
6.94%
Avg maturity
5.45 yr
Coupon type

Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.

12%
floating
Fixed rate88.1%
Floating rate11.6%
Zero-coupon or unclassified0.4%
Maturity ladder

Share of the fund's debt value in each maturity band, shortest first.

<1yUnknown
<1y1.2%
1-3y16.8%
3-5y34.4%
5-10y41.7%
10y+3.1%
Unknown2.9%
Flagged holdings
Defaulted: 0.37% · $23.11M · 8 positions
In arrears: 0.07% · $4.44M · 5 positions
Paid in kind: 0.51% · $31.57M · 4 positions

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

More of this fund’s sensitivity sits in credit spreads than in interest rates — a rate rally that comes with a credit selloff works against it.

Interest-rate duration
2.84 yr
approx. move per 100bp
Credit-spread duration
2.93 yr
approx. move per 100bp
If rates and spreads both rise 100bp

Where the loss would come from. The two shocks are the same size, so this is the balance of the fund's two sensitivities rather than a bet on one moving more.

≈ -6.0%
of value
Credit spreads51%
Interest rates49%

Filers report the impact of a 0.01% move only, so the total is our own scaling of that one number and overstates the loss on most bonds — read it as approximate, never as precise. The two sensitivities overlap rather than add up: they measure the same positions against different shocks, which is why the durations above are shown side by side and never summed.

Credit risk by quality

Share of the fund's spread duration carried by each credit tier.

+2.93
yrs total
High yield+2.75 yr
Investment grade+0.18 yr
Where the risk sits on the curve

Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.

Interest rate2.84 yr total
3 mo30 yr
3 mo0.05 yr2%
1 yr0.14 yr5%
5 yr1.99 yr70%
10 yr0.63 yr22%
30 yr0.03 yr1%
Credit spread2.93 yr total
3 mo30 yr
3 mo0.05 yr2%
1 yr0.14 yr5%
5 yr2.06 yr70%
10 yr0.65 yr22%
30 yr0.03 yr1%

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
TenorRate yrsIG yrsHY yrsIG $/bpHY $/bp
3 mo+0.05+0.00+0.05$1.9k$29.2k
1 yr+0.14+0.01+0.13$5.5k$84.9k
5 yr+1.99+0.13+1.93$80.6k$1.24m
10 yr+0.63+0.04+0.61$25.6k$394.0k
30 yr+0.03+0.00+0.03$1.3k$19.7k

Dollar change per 1bp of spread movement, as filed and sign-anchored. A blank cell was not filed; a zero was.

Holdings

By % of NAV · equity positions carry filed share counts · every resolvable issuer links to its company page

Issuer%NAVValue
Principal Funds, Inc - Government Money Market Fund - Class R-61.26%$80.75M
Energy Transfer LP6.50% floating · due 2056-02-150.82%$52.44M
Smyrna Ready Mix Concrete LLC6.00% · due 2028-11-010.77%$49.20M
EchoStar Corp10.75% · due 2029-11-300.76%$49.01M
Jazz Securities DAC4.38% · due 2029-01-150.72%$46.59M
Freedom Mortgage Holdings LLC9.13% · due 2031-05-150.71%$45.54M
Victra Holdings LLC / Victra Finance Corp8.75% · due 2029-09-150.69%$44.59M
California Buyer Ltd / Atlantica Sustainable Infrastructure PLC6.38% · due 2032-02-150.68%$43.49M
Global Aircraft Leasing Co Ltd8.75% · due 2027-09-010.67%$43.05M
1261229 BC Ltd Term Loan B9.90% floating · due 2030-10-080.66%$42.51M
Showing 10 of 448Sign in to see more

Top 10 positions are 7.74% of net assets, top 25 16.43%, across 285 issuers.

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