Principal's Global Diversified Income adds subadviser Stone Harbor

By Toni Weeks

San Diego, March 19 - Principal Funds, Inc. announced that its Global Diversified Income Fund has added Stone Harbor Investment Partners LP as a subadviser, according to a 497 filing with the Securities and Exchange Commission.

Stone Harbor will be the subadviser for the emerging market debt portion of the fund, effective March 30. Principal Global Investors, LLC currently manages this portion of the fund.

Effective March 31, the fund will change the weightings for the indexes within its Global Diversified Income Custom Index as follows: 38% from Barclays Capital U.S. Corporate High Yield 2% Issuer Capped Index; 20% blend of 50% Bank of America Merrill Lynch Fixed Rate Preferred Securities Index and 50% Barclays Capital U.S. Tier I Capital Securities Index; 14% from J.P. Morgan EMBI Global Diversified Index; 5% from MSCI All Country World Value Index; 6% from Tortoise Midstream MLP Index; 7% blend of 65% S&P 500 Utilities Index, 25% S&P 500 Telecom Services Index and 10% S&P 500 Energy Index; 5% FTSE EPRA/NAREIT Developed Index; and 5% Barclays Capital Investment Grade CMBS Index.

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

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