Principal's Diversified Real Asset Fund alters strategy, subadvisers

By Toni Weeks

San Diego, Jan. 31 - Principal Funds, Inc. announced it has modified the investment strategy for its Diversified Real Asset Fund, according to a 497 filing with the Securities and Exchange Commission.

Effective Feb. 3, the fund will now seek to achieve its investment objective by allocating its assets among inflation-indexed bonds, global real estate investment trusts, commodity index-linked notes, fixed-income securities, securities of natural resource companies, master limited partnerships, domestic and foreign publicly listed infrastructure and floating-rate debt.

Previously, the fund did not include publicly listed infrastructure or floating-rate debt among the allowed investment categories, and the REITs were not specified as being global.

The fund has added two additional subadvisers, Brookfield Investment Management Inc. and Symphony Asset Management LLC, who join the fund's five other subadvisers. Brookfield will manage the global infrastructure portion of the fund via a newly named sub-subadviser, AMP Capital Brookfield (US) LLC, who will carry out Brookfield's obligations to manage the portion of the fund's assets allocated to Brookfield. Symphony will manage the floating-rate debt portion of the assets.

The fund's investment adviser is Des Moines-based Principal Management Corp.

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