Government & High Quality Bond Account
Data updated: 2026-08-25
C000038539 — Government & High Quality Bond Account. Long Securitized (MBS/ABS/CMBS) Bond · $103.66M AUM. Holdings, fees, performance and SEC filings.
C000038539 Fund Overview
Government & High Quality Bond Account is a US mutual fund managed by Principal Variable Contracts Funds Inc, categorised as Long Securitized (MBS/ABS/CMBS) Bond. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.
- Type: US mutual fund
- Manager: Principal Variable Contracts Funds Inc
- Category: Long Securitized (MBS/ABS/CMBS) Bond
- Assets under management: $103.66M
- 1-year return: 4.3%
- SEC CIK: 0000012601
- SEC series ID: S000014088
- Share class ID: C000038539
C000038539 Investment Objective and Strategy
Government & High Quality Bond Account describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Principal Variable Contracts Funds Inc.
Investment objective
The Fund seeks to provide a high level of current income consistent with safety and liquidity.
Principal investment strategy
Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in bonds issued by the U.S. government, its agencies, or instrumentalities or bonds that are rated AAA by S&P Global Ratings (S&P Global) or Aaa by Moodys Investors Service, Inc. (Moodys). Bonds include, but are not limited to, asset-backed securities (ABS), mortgage securities such as agency and non-agency collateralized mortgage obligations, and other obligations that are secured by mortgages or mortgage-backed securities (MBS) (also referred to as securitized products). The Fund also invests in ABS and MBS that are rated lower than AAA by S&P Global or Aaa by Moodys (or of comparable quality), including collateralized mortgage obligations, and in other obligations that are secured by mortgages or MBS.
The MBS in which the Fund invests include MBS trading in the to-be-announced (TBA) markets. If a security has been rated by only one of the rating agencies, that rating will determine the securitys rating; if the security is rated differently by the rating agencies, the highest rating will be used; and if the security has not been rated by either of the rating agencies, those selecting such investments will determine the securitys quality. Under normal circumstances, the Fund maintains an average portfolio duration that is within 50% of the duration of the Bloomberg US Agency Fixed Rate MBS Index, which as of March 31, 2026 was 5.52 years. The Fund is not managed to a particular maturity. The Funds strategies may result in the active and frequent trading of the Funds portfolio securities. The Fund invests in derivatives, including Treasury futures and securities delivered in TBA transactions, to manage the fixed-income exposure.
A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index.
C000038539 Holdings
Top 10 holdings of Government & High Quality Bond Account by percentage of net assets, from the fund's latest SEC N-PORT filing.
| Holding | % of net assets |
|---|---|
| Ginnie Mae | 2.41% |
| Fannie Mae Pool | 2.18% |
| Ginnie Mae II Pool | 1.79% |
| United States Treasury Bill | 1.78% |
| Freddie Mac Pool | 1.75% |
| Freddie Mac Pool | 1.71% |
| Fannie Mae Pool | 1.70% |
| Fannie Mae Pool | 1.68% |
| Freddie Mac Pool | 1.66% |
| Freddie Mac Pool | 1.53% |
C000038539 Portfolio Allocation
Asset-class allocation of Government & High Quality Bond Account by percentage of net assets, from the latest SEC N-PORT filing.
| Asset class | Allocation |
|---|---|
| Securitized | 101.1% |
| Fixed Income | 2.2% |
| Cash & Equivalents | 1.0% |
C000038539 Performance
Total returns for C000038539 (as of 2026-10-01), from SEC filings.
| Period | Total return |
|---|---|
| YTD | 0.8% |
| 1 year | 4.3% |
| 3 years (annualised) | 4.0% |
| 5 years (annualised) | 0.0% |
C000038539 Risk Information
Risk metrics for C000038539, derived from monthly returns in SEC filings.
- 1-year volatility (annualised): 3.2%
C000038539 Costs and Fees
C000038539 costs about $50 per $10,000 invested per year in fund expenses.
- Net expense ratio: 0.50%
- Gross expense ratio: 0.50%
- Portfolio turnover: 240%
- Brokerage commissions: 0.00 bps of average net assets (SEC N-CEN)
C000038539 Cashflows
Over the 12 months to 2026-06, Government & High Quality Bond Account had net outflows of $5.43M, from monthly SEC N-PORT filings.
| Month | Net flow |
|---|---|
| 2026-06 | −$454.32K |
| 2026-05 | −$913.38K |
| 2026-04 | −$1.38M |
| 2026-03 | $37.28K |
| 2026-02 | −$337.60K |
| 2026-01 | −$1.31M |
C000038539 Debt Constituents
Largest debt holdings of Government & High Quality Bond Account by percentage of net assets, from the latest SEC N-PORT filing.
| Debt holding | % of net assets |
|---|---|
| United States Treasury Bill | 1.78% |
| United States Treasury Note/Bond | 0.47% |
C000038539 Prospectus and SEC Filings
Official Government & High Quality Bond Account filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.
- Prospectus (485BPOS) — filed 2026-04-27
- Prospectus (485BPOS) — filed 2025-04-25
- Prospectus (485BPOS) — filed 2024-04-25
- Portfolio holdings (N-PORT) — filed 2026-08-25
- Portfolio holdings (N-PORT) — filed 2026-05-26
- Portfolio holdings (N-PORT) — filed 2026-02-23
- Annual census (N-CEN) — filed 2026-03-12
- Annual census (N-CEN) — filed 2025-03-14
Related Funds
Other Long Securitized (MBS/ABS/CMBS) Bond funds tracked on ABC INVEST:
Data Sources
ABC INVEST compiles this page from public filings made to the U.S. Securities and Exchange Commission (SEC) through EDGAR: portfolio holdings and monthly cashflows from Form N-PORT, expenses and returns from fund prospectuses (Form 485BPOS) and the SEC DERA Risk/Return Summary data sets, annual data from Form N-CEN, and shareholder reports from Form N-CSR.