Short-Term Income Fund
Principal Funds, Inc · 6 share classes
Fund classification
Classified from what the fund holds · as of 2026 Q2
Short-Term 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
- Rate sensitivity
- Short duration
Fund profile
As filed in the prospectus · 2026 Q1
The Fund seeks to provide as high a level of current income as is consistent with prudent investment management and stability of principal.
The fund invests in high-quality fixed-income securities rated BBB- or higher, emphasizing short-term bonds with an effective maturity of five years or less and portfolio duration within 30% of the Bloomberg Credit 1-3 Year Index. Holdings span corporate, government, mortgage-backed, and asset-backed securities, including foreign debt. The fund uses Treasury and credit index futures for hedging and to manage fixed-income exposure. Because security selection relies partly on manager judgment for unrated securities, portfolio composition depends on those determinations.
| Share class | Expense ratio |
|---|---|
| SRHQX | 0.60% |
| STCCX | 1.54% |
| PSHIX | 0.39% |
| PSJIX | 0.59% |
| PSIOX | 0.92% |
| PSIQX | 0.61% |
Portfolio turnover 42.30% · as of 2026 Q1
Allocation
Asset groups · long / short shown separately, never netted · 2026 Q2
| Bonds | 61.03% |
| Securitized | 37.20% |
| Cash & short-term | 1.92% |
| Derivatives | 0.03% |
Derivatives are shown at market value, not notional exposure.
Sector allocation
The same holdings as Allocation above, grouped by market sector instead of asset type · as of 2026 Q2
| Securitized | 37.1% |
| Other | 13.1% |
| Financials | 12.7% |
| Government | 8.9% |
| 11 smaller | 28.1% |
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 Note/Bond, SPGN Trust 2026-TFLM, BX Commercial Mortgage Trust 2026-VLT9, Danske Bank A/S, Barclays PLC, Abbott Laboratories, CRSNT Trust 2026-MOON, World Omni Auto Receivables Trust 2026-A
Largest exited: United States Treasury Note/Bond ×2, JPMorgan Chase & Co, Southwestern Electric Power Co, SREIT Trust 2021-MFP, Graphic Packaging International LLC, AT&T Inc, The Williams Cos Inc
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 |
|---|---|---|---|---|---|
| +3.89% | +15.04% | +12.35% | 1.23% | -0.60% | |
| +2.90% | +11.81% | +7.10% | 1.25% | -0.68% | |
| +4.07% | +15.72% | +13.50% | 1.23% | -0.59% | |
| +3.90% | +15.19% | +12.54% | 1.19% | -0.61% | |
| — | — | — | — | — | |
| +3.54% | +13.97% | +10.56% | 1.20% | -0.63% | |
| — | — | — | — | — | |
| +3.87% | +15.05% | +12.33% | 1.26% | -0.60% |
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 | 61.2% |
| Floating rate | 38.8% |
Share of the fund's debt value in each maturity band, shortest first.
| <1y | 10.7% |
| 1-3y | 27.5% |
| 3-5y | 28.3% |
| 5-10y | 5.9% |
| 10y+ | 27.6% |
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
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.
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.
| Credit spreads | 56% |
| Interest rates | 44% |
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.
Share of the fund's spread duration carried by each credit tier.
| Investment grade | +2.39 yr |
| High yield | +0.01 yr |
Share of duration at each point, shortest first. A positive figure loses value when spreads widen; a negative one offsets — a credit hedge.
| 3 mo | 0.06 yr | 3% |
| 1 yr | 0.16 yr | 9% |
| 5 yr | 1.57 yr | 82% |
| 10 yr | 0.11 yr | 6% |
| 30 yr | 0.02 yr | 1% |
| 3 mo | 0.08 yr | 3% |
| 1 yr | 0.20 yr | 9% |
| 5 yr | 1.96 yr | 82% |
| 10 yr | 0.13 yr | 6% |
| 30 yr | 0.02 yr | 1% |
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 | +0.06 | +0.08 | +0.00 | $26.6k | $70 |
| 1 yr | +0.16 | +0.20 | +0.00 | $68.6k | $181 |
| 5 yr | +1.57 | +1.96 | +0.01 | $659.6k | $1.7k |
| 10 yr | +0.11 | +0.13 | +0.00 | $45.1k | $119 |
| 30 yr | +0.02 | +0.02 | +0.00 | $6.4k | $17 |
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
| Ticker | Issuer | %NAV | Value | Shares |
|---|---|---|---|---|
| — | United States Treasury Note/Bond3.25% · due 2029-06-30 | 3.32% | $111.83M | — |
| — | United States Treasury Note/Bond4.00% · due 2027-01-15 | 2.90% | $97.78M | — |
| — | Principal Funds, Inc - Government Money Market Fund - Class R-6 | 1.92% | $64.58M | — |
| — | United States Treasury Note/Bond4.50% · due 2026-07-15 | 1.55% | $52.28M | — |
| — | United States Treasury Note/Bond3.88% · due 2028-03-31 | 0.89% | $29.99M | — |
| — | HCA Inc5.25% · due 2026-06-15 | 0.59% | $20.02M | — |
| — | Vistra Operations Co LLC3.70% · due 2027-01-30 | 0.57% | $19.38M | — |
| — | SBA Tower Trust1.63% · due 2051-05-15 | 0.57% | $19.13M | — |
| — | Oaktree CLO 2019-4 Ltd5.19% floating · due 2037-07-20 | 0.56% | $19.02M | — |
| — | Nissan Auto Receivables 2025-B Owner Trust4.00% · due 2028-07-17 | 0.53% | $18.00M | — |
Top 10 positions are 13.41% of net assets, top 25 19.86%, across 336 issuers.
See more of this fund's book
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