Fund Evaluator:
Principal Inflation Protection R3 (PIFPX)
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Fund Details
Principal Inflation Protection R3 Overview
Principal Inflation Protection R3 (PIFPX) is a passively managed Taxable Bond Inflation-Protected Bond fund. Principal Funds launched the fund in 2004.
The investment seeks to provide current income and real (after inflation) total returns. The fund invests primarily in inflation-indexed bonds of varying maturities issued by the U.S. government. In managing the fund, Principal Global Investors, LLC (“PGI”), the fund’s investment advisor uses a sampling strategy designed to track the Bloomberg U.S. TIPS Index. The index is composed of investment grade U.S. treasury inflation-protected securities (“TIPS”).
About Principal Inflation Protection R3 (PIFPX)
There are 2 members of the management team with an average tenure of 0.50 years: Zach Gassmann (2026), Jeff Callahan (2026). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Bloomberg US Treasury US TIPS TR USD index with a weighting of 100% and Bloomberg US Agg Bond TR USD index with a weighting of 100%. Principal Inflation Protection R3 has 53 securities in its portfolio. The top 10 holdings constitute 35.8% 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 Inflation Protection R3 is part of the Fixed Income global asset class and is within the Taxable Bond fund group. Principal Inflation Protection R3 has 0.0% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 0.0%. 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 99.7% (99.7% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Principal Inflation Protection R3 has 0.3% of the portfolio in cash.
Assets Under Management
The fund has $4 million in total assets, which is below the $882 million average for the Inflation-Protected 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.
PIFPX 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 Inflation Protection R3 expense ratio is above average compared to funds in the Inflation-Protected Bond category. Principal Inflation Protection R3 has an expense ratio of 0.68%, which is 6% lower than its category average, making the fund expense ratio grade a C. 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 Inflation Protection R3 has a portfolio turnover rate of 155%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 73% for the Inflation-Protected Bond category.
Recently, in the month of August 2026, Principal Inflation Protection R3 returned 0.0%, which earned it a grade of F, as the Inflation-Protected Bond category had an average return of 0.2%. 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 Inflation Protection R3 has a trailing yield of 4.32%, which is above the 4.18% category average. The fund normally distributes its income annually 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 Inflation Protection R3 Grades
Year to date, the fund has returned 0.1%, 0.3 percentage points worse than the category, which translates into a grade of D. The fund has returned 0.3% over the past year (grade of D), 3.1% over the past three years (grade of F) and -0.4% per year over the past five years (grade of D) and 1.6% per year over the past 10 years (grade of F).
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PIFPX 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 |
|
| PIFPX Return (NAV) | 0.0% | -1.2% | 0.3% | 3.1% | -0.4% | 1.6% |
| PIFPX Grade | F | C | D | F | D | F |
| +/- Category | -0.2% | -0.0% | -0.6% | -0.7% | -0.5% | -0.5% |
| Inflation-Protected Bond Avg | 0.2% | -1.2% | 0.9% | 3.8% | 0.0% | 2.1% |
| PIFPX Tax Cost Ratio | na | na | 1.7% | 1.4% | 1.8% | 1.2% |
PIFPX Annual NAV Total ReturnsData as of 8/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| PIFPX Return (NAV) | 0.1% | 6.1% | 1.2% | 2.8% | -12.5% | 4.7% | 10.0% | 7.6% | -2.2% | 2.3% | 3.3% |
| PIFPX Grade | D | D | D | D | D | D | D | D | D | D | F |
| +/- Category | -0.3% | -0.7% | -0.6% | -0.6% | -0.2% | -0.4% | -1.0% | -0.5% | -0.2% | -0.6% | -1.2% |
| Inflation-Protected Bond Avg | 0.4% | 6.7% | 1.8% | 3.4% | -12.3% | 5.1% | 11.1% | 8.0% | -1.9% | 2.9% | 4.5% |
| Risk Measures | |
| Standard Deviation: | 4.1% |
| Total Risk Index: | 0.34 - Low |
| Category Risk Index: | 0.92 - Below Average |
| Category Risk Grade: | B (23% Rank) |
| Beta: | 0.69 |
| R-Squared: | 88% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | na |
| Bond Investment Style: | na |
| Yield: | 4.3% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $2126 Mil |
| Fund Total Assets: | $ 5 Mil |
| Share Class Type: | Retirement |
| Portfolio Turnover: | 155% |
Management Team
| Number of Managers: 2 | |||
| Longest Tenure: 0.5 years | |||
| Average Tenure: 0.5 years | |||
| Managers (Year): Gassmann Zach (2026), Callahan Jeff (2026) | |||
Portfolio Composition (as of 7/31/26)
| # of Holdings: | 53 |
| % in Top 10 Holdings: | 35.8% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 0.0% |
Portfolio Allocation |
|
| Domestic Stock: | 0.0% |
| Foreign Stock: | 0.0% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 99.7% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 0.3% |
Purchase Information
| Fund Family: | Principal Funds |
| Phone Number: | 800-222-5852 |
| Website: | www.principalfunds.com |
| Status: | Open |
| Inception Date: | December 29, 2004 |
| 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: | 0.25% |
Expenses and Fees | |
| Expense Ratio (%): | 0.68% ( Rating : Above Avg ) |
| Category Average Expense Ratio (%): | 0.73% |
| Share Class: | Principal Inflation Protection J |
| Min. Subsequent Purchase: | $ 0 |
| Min. Subsequent IRA Purchase: | $ 0 |
