Spectrum Preferred and Capital Securities Income Fund
Principal Funds, Inc · 7 share classes
Fund classification
Classified from what the fund holds · as of 2026 Q2
Spectrum Preferred and Capital Securities Income Fund is an actively managed global bond fund.
- Asset class
- Bonds
- Region
- Global
- Management
- Actively managed
- Fund type
- Open-end fund
- Credit quality
- Mixed credit
- Rate sensitivity
- Short duration
Fund profile
As filed in the prospectus · 2025 Q4
The Fund seeks to provide current income.
The fund invests at least 80% of assets in preferred securities and capital securities issued by financial institutions and other corporations, selecting issues rated investment-grade or below-investment-grade (up to 55% of assets) at the time of purchase. The fund concentrates more than 25% of assets in the financial services sector, including banking, insurance, and commercial finance. Because the fund's returns depend on the credit quality and payment performance of issuers it selects, credit deterioration or defaults among its holdings will reduce returns.
| Share class | Expense ratio |
|---|---|
| PNARX | 1.28% |
| PPARX | 0.97% |
| PPSIX | 0.81% |
| PPSJX | 1.00% |
| PPSAX | 1.05% |
| PRFCX | 1.82% |
| PPREX | 0.71% |
Portfolio turnover 24.80% · as of 2025 Q4
Allocation
Asset groups · long / short shown separately, never netted · 2026 Q2
| Bonds | 85.83% |
| Stocks | 12.33% |
| Cash & short-term | 1.65% |
Look-through blends 1 underlying fund; 0.0% 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
| Financials | 52.6% |
| International | 24.9% |
| Other | 7.6% |
| Utilities | 7.0% |
| 6 smaller | 7.9% |
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: The Charles Schwab Corp, JPMorgan Chase & Co, Standard Chartered PLC, TransCanada PipeLines Ltd, Verizon Communications Inc, First Horizon Corp, BNP Paribas SA, Eversource Energy
Largest exited: Scentre Group Trust 2, Argentum Netherlands BV for Swiss Re Ltd, M&T Bank Corp, Standard Chartered PLC, Capital One Financial Corp, Zurich Finance Ireland Designated Activity Co, NextEra Energy Capital Holdings Inc, BNP Paribas SA
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 |
|---|---|---|---|---|---|
| +7.79% | +26.95% | +13.28% | 3.76% | -2.83% | |
| +7.96% | +27.76% | +14.72% | 3.64% | -2.63% | |
| — | — | — | — | — | |
| — | — | — | — | — | |
| +8.20% | +28.51% | +15.69% | 3.62% | -2.69% | |
| +8.04% | +27.77% | +14.53% | 3.72% | -2.72% | |
| +7.96% | +27.55% | +14.25% | 3.73% | -2.72% | |
| +7.14% | +24.58% | +10.00% | 3.72% | -2.92% | |
| +8.46% | +28.93% | +16.30% | 3.78% | -2.67% |
May 2026 has been filed since the trailing figures were struck, so it is not in the table above or the curve — every figure here shares one cut-off, which is what makes them comparable with other funds.
Debt profile
What this fund holds — value-weighted across its bond and securitized long positions · as of 2026-05-31
Share of the fund's debt by how its coupon behaves — the fact that decides whether a rate move reaches this portfolio at all.
| Floating rate | 92.6% |
| Fixed rate | 7.4% |
Share of the fund's debt value in each maturity band, shortest first.
| <1y | 0.1% |
| 1-3y | 0.2% |
| 3-5y | 0.8% |
| 5-10y | 0.3% |
| 10y+ | 35.1% |
| Unknown | 63.5% |
Based on what filers reported; a filer that never reported a flag also reads as none.
Risk profile
Interest-rate and credit-spread sensitivity, both in years · as of 2026Q2
Most of this fund’s sensitivity is to interest rates, with credit spreads carrying nearly as much.
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.
| Interest rates | 50% |
| Credit spreads | 50% |
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 | +1.95 yr |
| High yield | +0.37 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 | 0.00 yr | 0% |
| 1 yr | 0.06 yr | 3% |
| 5 yr | 0.84 yr | 36% |
| 10 yr | 1.31 yr | 57% |
| 30 yr | 0.10 yr | 4% |
| 3 mo | 0.00 yr | 0% |
| 1 yr | 0.06 yr | 3% |
| 5 yr | 0.84 yr | 36% |
| 10 yr | 1.31 yr | 57% |
| 30 yr | 0.10 yr | 4% |
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 | $1.9k | $362 |
| 1 yr | +0.06 | +0.05 | +0.01 | $26.2k | $5.0k |
| 5 yr | +0.84 | +0.71 | +0.14 | $339.5k | $65.1k |
| 10 yr | +1.31 | +1.10 | +0.21 | $529.0k | $101.5k |
| 30 yr | +0.10 | +0.08 | +0.02 | $38.6k | $7.4k |
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 |
|---|---|---|---|---|
| — | The PNC Financial Services Group Inc6.25% floating | 2.32% | $111.33M | — |
| — | Liberty Mutual Group Inc7.80% · due 2087-03-07 | 1.78% | $85.31M | — |
| — | ING Groep NV7.00% floating | 1.74% | $83.33M | — |
| — | Principal Funds, Inc - Government Money Market Fund - Class R-6 | 1.64% | $78.84M | — |
| — | Bank of America Corp6.25% floating | 1.61% | $77.31M | — |
| — | NatWest Group PLC8.13% floating | 1.53% | $73.29M | — |
| — | Huntington Bancshares Inc4.45% floating | 1.50% | $72.26M | — |
| — | Barclays PLC9.63% floating | 1.47% | $70.41M | — |
| — | Citigroup Inc6.63% floating | 1.46% | $69.85M | — |
| — | MetLife Inc10.75% · due 2069-08-01 | 1.45% | $69.36M | — |
Top 10 positions are 16.48% of net assets, top 25 32.54%, across 129 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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