Fund Evaluator:
Principal Multi-Sector Income Instl (PGDIX)
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Fund Details
Principal Multi-Sector Income Instl Overview
Principal Multi-Sector Income Instl (PGDIX) is an actively managed Taxable Bond Multisector Bond fund. Principal Funds launched the fund in 2008.
The investment seeks income. The fund generally invests a majority of its assets in fixed-income securities, such as investment-grade corporate bonds, which are rated at the time of purchase Baa3 or higher by Moody’s Ratings (“Moody’s”) or BBB- or higher by S&P Global Ratings (“S&P Global”); bank loans; high yield bonds (also known as “junk bonds"), which are rated at the time of purchase Ba1 or lower by Moody’s and BB+ or lower by S&P Global; preferred securities; foreign securities (including emerging market securities and sovereign debt); U.S. government securities; and securitized products.
About Principal Multi-Sector Income Instl (PGDIX)
There are 2 members of the management team with an average tenure of 0.02 years: Tina Paris (2026), Michael Goosay (2026). Management tenure is more important for actively managed funds than passive index funds.
The fund has 1 primary benchmark: Bloomberg US Agg Bond TR USD index with a weighting of 100%. Principal Multi-Sector Income Instl has 2802 securities in its portfolio. The top 10 holdings constitute 13.2% of the fund’s assets. The fund meets the SEC requirement of being classified as a diversified fund. The fund is not considered to have an ESG focus with its investment selection and management.
Principal Multi-Sector Income Instl is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Principal Multi-Sector Income Instl has 26.5% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 1.0%. There is 0.0% allocated to foreign stock, and 3.6% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 89.5% (63.0% domestic bond, 26.5% foreign bond and 0.1% convertible bond). Principal Multi-Sector Income Instl has 5.7% of the portfolio in cash.
Assets Under Management
The fund has $1 billion in total assets, which is below the $1 billion average for the Multisector Bond 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.
PGDIX 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 Multi-Sector Income Instl expense ratio is above average compared to funds in the Multisector Bond category. Principal Multi-Sector Income Instl has an expense ratio of 0.69%, which is 27% 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 Multi-Sector Income Instl has a portfolio turnover rate of 92%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 157% for the Multisector Bond category.
Recently, in the month of August 2026, Principal Multi-Sector Income Instl returned 0.3%, which earned it a grade of F, as the Multisector Bond category had an average return of 0.5%. 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 Multi-Sector Income Instl has a trailing yield of 6.46%, which is above the 5.31% category average. The fund normally distributes its income monthly 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 Multi-Sector Income Instl Grades
Year to date, the fund has returned 0.0%, 1.4 percentage points worse than the category, which translates into a grade of F. The fund has returned 0.8% over the past year (grade of F), 5.6% over the past three years (grade of F) and 1.7% per year over the past five years (grade of D) and 3.6% per year over the past 10 years (grade of C).
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PGDIX Trailing NAV Total Returns Data as of 8/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| PGDIX Return (NAV) | 0.3% | -0.1% | 0.8% | 5.6% | 1.7% | 3.6% |
| PGDIX Grade | F | D | F | F | D | C |
| +/- Category | -0.2% | -0.2% | -2.8% | -1.0% | -0.7% | 0.2% |
| Multisector Bond Avg | 0.5% | 0.1% | 3.6% | 6.6% | 2.4% | 3.5% |
| PGDIX Tax Cost Ratio | na | na | 2.5% | 2.5% | 2.3% | 2.2% |
PGDIX Annual NAV Total ReturnsData as of 8/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| PGDIX Return (NAV) | 0.0% | 6.5% | 5.4% | 8.5% | -11.2% | 8.7% | 1.9% | 13.8% | -5.4% | 10.2% | 9.6% |
| PGDIX Grade | F | F | D | C | C | A | F | A | F | A | B |
| +/- Category | -1.4% | -1.6% | -0.3% | 0.2% | -1.1% | 6.4% | -4.4% | 3.5% | -3.5% | 3.6% | 2.1% |
| Multisector Bond Avg | 1.4% | 8.1% | 5.7% | 8.4% | -10.1% | 2.2% | 6.3% | 10.3% | -1.9% | 6.6% | 7.5% |
| Risk Measures | |
| Standard Deviation: | 4.4% |
| Total Risk Index: | 0.36 - Low |
| Category Risk Index: | 0.99 - Below Average |
| Category Risk Grade: | B (38% Rank) |
| Beta: | 0.71 |
| R-Squared: | 82% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | High Quality Moderate Sensitivity |
| Yield: | 6.5% |
| Dividend Distribution: | Monthly |
| Cap Gains Distribution: | Annually |
| Total Assets: | $1956 Mil |
| Fund Total Assets: | $1,091 Mil |
| Share Class Type: | Inst |
| Portfolio Turnover: | 93% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 0.0 years | |||
| Average Tenure: 0.0 years | |||
| Managers (Year): Paris Tina (2026), Goosay Michael (2026) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 2802 |
| % in Top 10 Holdings: | 13.2% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 26.5% |
Portfolio Allocation |
|
| Domestic Stock: | 1.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 3.6% |
| Domestic Bond: | 63.0% |
| Foreign Bond: | 26.5% |
| Convertible Bond: | 0.1% |
| Other: | 0.2% |
| Cash: | 5.7% |
Purchase Information
| Fund Family: | Principal Funds |
| Phone Number: | 800-222-5852 |
| Website: | www.principalfunds.com |
| Status: | Open |
| Inception Date: | December 15, 2008 |
| Min. Initial Purchase: | $ 0 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | Yes |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 0.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | na |
Expenses and Fees | |
| Expense Ratio (%): | 0.69% ( Rating : Above Avg ) |
| Category Average Expense Ratio (%): | 0.94% |
| Share Class: | Principal Multi-Sector Income Instl |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
