High Yield Inst Fund
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High Yield Inst Fund High Yield Inst Fund Document Transcript

  • High Yield Inst Fund as of 06/30/2010 Investment Strategy Morningstar category The investment seeks to provide a relatively high level of current income. The fund invests primarily in High Yield Bond high-yield, high-risk, below-investment-grade fixed-income securities (sometimes called "junk bonds"), Morningstar Style BoxTM which may include foreign investments. It invests normally at least 80% of net assets (plus any borrowings for investment purposes) in a diversified portfolio of fixed-income securities (including As of 05/31/2010 convertible securities and preferred stocks) rated lower than BBB by S&P or Fitch or rated lower than Baa Investment style Duration by Moody's or of equivalent quality as determined by management. Value Blend Growth Short Int Long Market capitalization Large High Quality Medium Medium Portfolio managers Small Low Mark P. Denkinger, CFA. Since 05/04/2009. M.B.A., University of Iowa Darrin E. Smith, CFA. Since 05/04/2009. M.B.A., Drake University Risk and Return Statistics Long-term returns % as of 06/30/2010 as of 06/30/2010 Relative to High Yield Inst Fund Barclays Capital US Corp High High Yield Bond Category Yld 2% Issuer Capped Index Barclays Capital US Corp High Yld 2% Issuer Capped Index 30 26.66 3Yr 5Yr 23.95 Alpha 0.00 1.86 20.88 20 Beta 0.79 0.79 R-Squared 96.13 95.08 8.39 8.54 Standard Deviation 13.77 10.82 10 6.88 7.22 7.46 5.97 3.59 4.45 3.67 3.32 5.00 5.27 Mean 5.97 8.39 0 Sharpe Ratio 0.37 0.54 Year To Date 1 Year 3 Year 5 Year 10 Year Excess Risk 4.53 3.70 Performance disclosure Information Ratio -0.20 0.32 Investment results shown represent historical performance and do not guarantee future results. Investment returns and principal values fluctuate with changes in interest rates and other market Operations conditions so the value, when redeemed, may be worth more or less than original costs. Current Total Investment Expense Net 0.54% performance may be lower or higher than the performance data shown. For more performance information, including the most recent month-end performance, visit Rates & Values on Total Investment Expense Gross 0.54% www.principal.com, contact your representative of The Principal, or call our Client Contact Center at 1-800-222-5852. Inception Date 07/28/1998 In situations where the net and gross total investment expense figures are different, the mutual fund or Extended Performance the underlying fund in which a Separate Account invests has waived/capped a portion of its management Inception Date# 04/08/1998 fees through the date displayed in the waiver expiration date or contractual cap expiration date column. Differences may also be shown due to the fund family choosing to pay certain expenses that would Total Net Assets (mil) $3,002.21 normally be payable by the fund. Returns displayed are based on net total investment expense. 12b-1 Fees - Long Term Returns Year To Date 1 Year 3 Year 5 Year 10 Year Ticker PHYTX Total Return % 3.59 20.88 5.97 8.39 8.54 Barclays Capital US Corp High Yld 2% 4.45 26.66 6.88 7.22 7.46 Issuer Capped Index % © 2010 Morningstar, Inc. All Rights Reserved. Part of High Yield Bond Category % 3.67 23.95 3.32 5.00 5.27 the mutual fund data contained herein: (1) is Morningstar Percentile Rankings - 69 10 1 1 proprietary to Morningstar and/or its content # of Funds in Category 580 564 500 428 280 providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers Annual Returns 2009 2008 2007 2006 2005 are responsible for any damages or losses arising Total Return % 42.59 -21.20 6.10 14.76 6.94 from any use of this information. Barclays Capital US Corp High Yld 2% 58.76 -25.88 2.27 10.76 2.76 Risk and return statistical data is provided by Markov Issuer Capped Index % Processes International (MPI). High Yield Bond Category % 46.70 -26.41 1.47 10.14 2.59 Morningstar Percentile Rankings 68 22 2 3 2 # of Funds in Category 543 559 542 549 518 Morningstar percentile rankings are based on total returns.
  • High Yield Inst Fund as of 06/30/2010 Portfolio information† Composition as of % of Assets Top ten holdings % of net Analysis 05/31/2010 assets U.S. Bonds 74.45 1. Bk Of Amer Corporation FRN 1.67 # of Stock Hldgs 5 Non-U.S. Bonds 13.66 2. Hca 9.25% 1.55 # of Bond Hldgs 227 Cash 5.46 3. Intelsat Bermuda 11.25% 1.51 # of Other Hldgs 27 Convertibles 4.21 4. Liberty Mut Grp 144A FRN 1.50 GeoAvgCap (mil) $575.31 Non-U.S. Stocks 1.39 Other 0.78 5. Lincoln Natl Corp Ind FRN 1.41 Turnover Ratio 57% Preferred 0.05 6. Nextel Comms 7.375% 1.33 P/C Ratio 17.37 7. Ccm Merger 144A 8% 1.24 P/E Ratio 33.46 8. Dish Dbs 7.875% 1.24 P/B Ratio 2.51 9. Linn Engy 9.875% 1.24 10. Ford, Term Loan B 1.23 % of net assets in top ten holdings* 13.91 Credit Analysis % Bonds Statistics As of 05/31/2010 Avg Eff Duration (Yrs) 4.51 AAA 3.82 Avg Eff Maturity (Yrs) 6.73 AA 0.00 Avg Weighted Price 96.05 A 0.36 30-Day SEC Yield - 7.92 BBB 1.90 Non-Subsidized (Gross) BB 27.41 30-Day SEC Yield - 7.95 B 40.11 Subsidized (Net) Below B 23.48 Not Rated 2.92 Returns shown for periods of less than one year are not annualized. Annualized total returns measure net investment income and capital gain or loss from portfolio investments as an annualized average, assuming the reinvestment of dividends, and without adjusting for loads. Insurance products and plan administrative services are provided by Principal Life Insurance Company. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities are offered through Princor Financial Services Corporation, 800-222-5852, member SIPC, and/or independent broker/dealers. Securities sold by a Princor® Registered Representative are offered through Princor. Principal Funds Distributor, Princor and Principal Life are members of the Principal Financial Group®, Des Moines, IA 50392. Certain investment options may not be available in all states or U.S. commonwealths. The full name of this investment option is Principal High Yield Inst Fund. Before investing in mutual funds, investors should carefully consider the investment objectives, risks, charges and expenses of the funds. This and other information is contained in the free prospectus, which can be obtained from your local representative, by visiting www.principal.com, or by contacting us at 1-800-222-5852. Please read the prospectus carefully before investing. Barclays Capital US Corp High Yld 2% Issuer Capped Index is an unmanaged in ex comprised of fixed rate, non-investment grade debt securities that are dollar denominated. The index limits the maximum exposure to any one issuer to 2%. Alpha - The difference between an investment's actual returns and its expected performance, given its level of risk (as measured by beta). Beta - An investment's sensitivity to market movements. R-squared - Ranges from 0 to 100 and reveals how closely an investment's returns track those of a benchmark index. Standard Deviation - Measures how much an investment's returns are likely to fluctuate. Mean - Represents the annualized total return for a fund over 3 and 5 years. Sharpe Ratio - Measures how an investment balances risks and rewards. The higher the Sharpe ratio, the better the investment's historical risk-adjusted performance. Excess Return - The difference between a manager's return and the return of an external standard such as a passive index. Excess Risk - The standard deviation or volatility of excess returns. Information Ratio - A risk-adjusted measure commonly used to evaluate an active manager's involvement skill. It's defined as the manager's excess return divided by the variability or standard deviation of the excess return. † Portfolio holdings are subject to change and companies referenced in this report may not currently be held. Information is current as of the creation of this piece. Keep in mind that portfolio holdings are subject to risk. For a complete list of the most recent publicly available holdings visit www.principal.com. High yield investment options are subject to greater credit risk associated with high yield bonds. #These calculated returns reflect the historical performance of the oldest share class of the fund, adjusted to reflect a portion of the fees and expenses of this share class. Please see the fund's prospectus for more information on specific expenses, and the fund's most recent shareholder report for actual date of first sale. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class. Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Neither the principal of bond investment options nor their yields are guaranteed by the U.S. government. Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure. Formerly known as High Yield II Fund. Prior to January 16, 2007, known as the WM High Yield Fund. * Values may exceed 100% if both long and short positions are included in the portfolio.