PGDSX — Diversified Real Asset Fund

PGDSX Fund Overview

PGDSX — Diversified Real Asset Fund is a US mutual fund managed by Principal Funds, Inc., categorised as Global (incl. US) Mid Cap Blend / Core Equity. ABC INVEST provides holdings, performance, costs, cashflows, risk data, prospectus documents and SEC filings, sourced from SEC filings.

• Type: US mutual fund
• Manager: Principal Funds, Inc.
• Category: Global (incl. US) Mid Cap Blend / Core Equity
• Assets under management: $2.69B
• 1-year return: 10.2%
• Ticker: PGDSX
• SEC CIK: 0000898745
• SEC series ID: S000028139
• Share class ID: C000167693

PGDSX Investment Objective and Strategy

Diversified Real Asset Fund describes its objective and strategy as follows, from its latest prospectus filed with the SEC by Principal Funds, Inc..

Investment objective

The Fund seeks a long-term total return in excess of inflation.

Principal investment strategy

"Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in investments related to real assets and real asset companies. The Fund seeks to achieve its investment objective by allocating its assets among general investment categories related to real assets and real asset companies (which include tangible assets and investments that are expected to perform well in periods of rising or high inflation) such as the following: infrastructure, natural resources and timber, commodities, real estate companies, foreign currency, and certain bonds and fixed income securities (such as inflation-indexed bonds, U.S. treasury and agency notes and bonds, and floating rate debt). The Fund purchases derivative instruments. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index.

In managing the Fund, Principal Global Investors, LLC (PGI), the Funds investment advisor, determines the Fund's strategic asset allocation among strategies that are executed by multiple sub-advisors. PGI has considerable latitude in allocating the Fund's assets. The Fund will use strategies and sub-advisors to varying degrees and may change allocations, add new or eliminate existing strategies and sub-advisors, and temporarily or permanently reduce allocations from time to time such that the Fund would have little or no assets allocated to a particular strategy or sub-advisor. The Fund concentrates its investments (invests more than 25% of its net assets) in securities in the real estate and energy/natural resources industries. The Fund invests in U.S. and foreign securities. The Fund may invest in equity securities regardless of market capitalization size (small, medium, or large) and style (growth or value).

The fixed income portion of the Fund is not managed to a particular maturity or duration. The Fund invests in domestic and foreign publicly-listed infrastructure companies. Publicly-listed infrastructure equity securities trade on an exchange and include, but are not limited to, companies involved in the ownership and/or operations of infrastructure assets within the transportation, communications, water, electricity transmission and distribution, and oil and gas storage, processing and transportation industries. The Fund invests in MLPs, and in particular, in the mid-stream category of MLPs, which is generally comprised of pipelines used to gather, process, transport, and distribute natural resources such as natural gas, crude oil, and refined petroleum products. Natural resources generally include precious metals, such as gold, silver and platinum, ferrous and nonferrous metals, such as iron, aluminum and copper, strategic metals such as uranium and titanium, hydrocarbons such as coal, oil and natural gas, timberland, and undeveloped real property.

The Fund invests in securities of companies that primarily own, explore, mine, process or otherwise develop natural resources, timber and wood products, or agricultural commodities and products, or that supply goods and services to such companies. These include companies contributing to and/or profiting from, these sectors, especially those active in production, processing and supply chain services. Part of the natural resources strategy is managed by PGI using a passive management strategy in which PGI purchases all of the securities in the S&P Global Natural Resources Index, and weighs them equally, in an attempt to match or exceed the performance of the index. Commodities are assets that have tangible properties, such as oil, coal, natural gas, agricultural products, industrial metals, livestock and precious metals.

To gain exposure to the commodities markets without investing directly in physical commodities, the Fund invests in a combination of commodity index-linked notes and fixed-income securities. Commodity index-linked notes are derivative debt instruments with principal and/or coupon payments linked to the performance of commodity indices. These notes are sometimes referred to as ""structured notes"" because the terms of these notes may be structured by the issuer and the purchaser of the note. The value of these notes will rise or fall in response to changes in the underlying commodity index and will be subject to credit and interest rate risks that typically affect debt securities. The fixed income securities are primarily short-term U.S. Treasury and Agency notes and bonds. The Fund invests in a wholly-owned subsidiary of the Fund organized under the laws of the Cayman Islands (the Cayman Subsidiary).

The Fund invests in the Cayman Subsidiary to gain exposure to the commodity markets within the limitations of the federal tax law requirements applicable to regulated investment companies (RICs) under the Internal Revenue Code (the Code). The Cayman Subsidiary invests in commodity-linked derivatives, including commodity-linked swaps, commodity futures contracts and/or options on commodities, as well as instruments such as fixed income securities, cash and cash equivalents and/or U.S. government securities, either as investments or to serve as margin or collateral for the Cayman Subsidiary's derivatives positions. The Fund invests in equity securities of companies that have at least 50% of its assets, income or profits derived from products or services related to the real estate industry (""real estate companies"").

Real estate companies include real estate investment trusts (""REITs""), REIT-like entities, and companies with substantial real estate holdings such as paper, lumber, hotel and entertainment companies as well as building supply manufacturers, mortgage lenders, and mortgage servicing companies. The Fund invests in currency forward contracts and options for the purpose of hedging risk and providing total return. This portion of the Fund invests in currencies of economically and politically stable industrialized nations, and approximately 20 of the most liquid emerging market currencies. To help preserve purchasing power, when domestic inflation increases, the Fund seeks to invest in currencies in countries where inflation remains low and stable. The Fund invests in inflation-indexed bonds issued by the U.S.

and non-U.S. governments, their agencies or instrumentalities and U.S. and non-U.S. corporations. Inflation-indexed bonds are fixed-income securities that are structured to provide protection against inflation. The value of the bond's principal or the interest income paid on the bond is adjusted to track changes in an official inflation measure. The Fund invests in below-investment-grade (sometimes called junk) or comparable unrated floating rate debt (also known as bank loans, syndicated loans, leveraged loans or senior floating rate interests). Floating rate debt has a variable coupon that resets periodically, with interest payments determined by a representative interest rate index (e.g. LIBOR or the federal funds rate) plus a fixed spread. As a result, the coupon payments vary, or float with prevailing market interest rates.

During the fiscal year ended August 31, 2017, the average ratings of the Funds fixed-income assets, based on market value at each month-end, were as follows (all ratings are by Moodys): 41.56% in securities rated Aaa 5.84% in securities rated Baa 3.24% in securities rated Caa 0.10% in securities rated D 0.00% in securities rated Aa 23.93% in securities rated Ba 0.05% in securities rated Ca 6.86% in securities not rated 0.65% in securities rated A 17.77% in securities rated B 0.00% in securities rated C"

PGDSX Holdings

Top 10 holdings of Diversified Real Asset Fund by percentage of net assets, from the fund's latest SEC N-PORT filing.

View all PGDSX holdings

PGDSX Portfolio Allocation

Asset-class allocation of Diversified Real Asset Fund by percentage of net assets, from the latest SEC N-PORT filing.

PGDSX Performance

Total returns for PGDSX (as of 2026-10-01), from SEC filings.

PGDSX Risk Information

Risk metrics for PGDSX, derived from monthly returns in SEC filings.

• 1-year volatility (annualised): 8.1%

PGDSX Costs and Fees

PGDSX costs about $115 per $10,000 invested per year in fund expenses.

• Net expense ratio: 1.15%
• Gross expense ratio: 1.20%
• Portfolio turnover: 86%
• Brokerage commissions: 7.23 bps of average net assets (SEC N-CEN)

PGDSX Cashflows

Over the 12 months to 2026-05, Diversified Real Asset Fund had net outflows of $181.15M, from monthly SEC N-PORT filings.

PGDSX Debt Constituents

Largest debt holdings of Diversified Real Asset Fund by percentage of net assets, from the latest SEC N-PORT filing.

PGDSX Prospectus and SEC Filings

Official Diversified Real Asset Fund filings on SEC EDGAR — prospectus, portfolio holdings and annual reports.

• Prospectus (485BPOS) — filed 2025-12-23
• Prospectus (485BPOS) — filed 2024-12-27
• Prospectus (485BPOS) — filed 2023-12-27
• Portfolio holdings (N-PORT) — filed 2026-07-24
• Portfolio holdings (N-PORT) — filed 2026-04-24
• Portfolio holdings (N-PORT) — filed 2026-01-23
• Annual census (N-CEN) — filed 2025-11-14
• Annual census (N-CEN) — filed 2023-11-13

Related Funds

Other Global (incl. US) Mid Cap Blend / Core Equity funds tracked on ABC INVEST:

• First Eagle Global Fund (SGENX)
• Fidelity Low-Priced Stock Fund (FLPSX)
• Dodge & Cox Global Stock Fund (DODWX)
• Old Westbury Small & Mid Cap Strategies Fund (OWSMX)
• AQR Long-Short Equity Fund (QLEIX)

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.