Fund Evaluator:

Principal Real Estate Securities Fd R6 Overview

Principal Real Estate Securities Fd R6 (PFRSX) is an actively managed Sector Equity Real Estate fund. Principal Funds launched the fund in 2016.

The investment seeks to generate a total return. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies principally engaged in the real estate industry. It invests in equity securities regardless of market capitalization (small, medium or large). The fund concentrates its investments (invest more than 25% of its net assets) in securities in the real estate industry. It is non-diversified.

About Principal Real Estate Securities Fd R6 (PFRSX)

There are 3 members of the management team with an average tenure of 17.41 years: Anthony Kenkel (2012), Keith Bokota (2013), Kelly Rush (2000). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: FTSE Nareit All Equity REITs TR USD index with a weighting of 100% and Russell 3000 TR USD index with a weighting of 100%. Principal Real Estate Securities Fd R6 has 45 securities in its portfolio. The top 10 holdings constitute 56.6% of the fund’s assets. The fund meets the SEC requirement of being classified as a nondiversified fund. The fund is not considered to have an ESG focus with its investment selection and management.

Principal Real Estate Securities Fd R6 is part of the Equity global asset class and is within the Sector Equity fund group. Principal Real Estate Securities Fd R6 has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 98.5%. There is 0.0% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.1% (0.1% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Principal Real Estate Securities Fd R6 has 1.4% of the portfolio in cash.

Assets Under Management

The fund has $2 billion in total assets, which is above the $657 million average for the Real Estate category. Normally, lower assets under management translates to higher average expense ratios, and greater total assets are desired. However, for some investment categories, such as small-cap investing, it may be difficult for the manager to fully employ the desired active strategy if assets grow too large or too quickly.

PFRSX Performance and Fees

The expense ratio measures how much of a fund’s assets are used for administrative expenses and operating expenses, including adviser fees and fees for the transfer agent and custodial services. The Principal Real Estate Securities Fd R6 expense ratio is high compared to funds in the Real Estate category. Principal Real Estate Securities Fd R6 has an expense ratio of 0.81%, which is 34% lower than its category average, making the fund expense ratio grade a B. While it is difficult to predict returns, it is known that high annual expense ratios reduce your rate of return, and excessive fees are difficult to overcome. Active management normally comes with higher expense ratios than passive index management. Certain investment categories such as small company and foreign also normally have higher expense ratios. It is best to compare fund expense ratios against the category averages for meaningful assessments.

High portfolio turnover can translate to higher expenses and lower aftertax returns. Principal Real Estate Securities Fd R6 has a portfolio turnover rate of 18%, indicating that holds its assets around 0.1 years. By way of comparison, the average portfolio turnover is 80% for the Real Estate category.

Recently, in the month of June 2026, Principal Real Estate Securities Fd R6 returned 1.3%, which earned it a grade of F, as the Real Estate category had an average return of 2.0%. The letter grades of A, B, C, D and F are based upon relative rankings within the investment category. A grade of A, for example, would indicate that the return is in the highest 20% for that time period compared to all funds in that category.

Principal Real Estate Securities Fd R6 has a trailing yield of 2.28%, which is above the 2.17% category average. The fund normally distributes its income quarterly and its capital gains annually.

It’s natural to seek the best-performing investments, but you must consider the relationship between risk and return and the impact of costs and taxes on your realized returns.

Principal Real Estate Securities Fd R6 Grades

Year to date, the fund has returned 13.8%, 0.4 percentage points worse than the category, which translates into a grade of C. The fund has returned 12.2% over the past year (grade of D), 9.4% over the past three years (grade of C) and 3.7% per year over the past five years (grade of C) and 6.2% per year over the past 10 years (grade of B).

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