Fund Evaluator:

Principal Global Real Estate Sec Instl Overview

Principal Global Real Estate Sec Instl (POSIX) is an actively managed Sector Equity Global Real Estate fund. Principal Funds launched the fund in 2007.

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 U.S. and non-U.S. companies principally engaged in the real estate industry. For the fund's investment policies, a real estate company has at least 50% of its assets, income or profits derived from products or services related to the real estate industry.

About Principal Global Real Estate Sec Instl (POSIX)

There are 2 members of the management team with an average tenure of 17.28 years: Anthony Kenkel (2010), Kelly Rush (2007). Management tenure is more important for actively managed funds than passive index funds.

The fund has 2 primary benchmarks: FTSE EPRA Nareit Developed NR USD index with a weighting of 100% and MSCI ACWI NR USD index with a weighting of 100%. Principal Global Real Estate Sec Instl has 74 securities in its portfolio. The top 10 holdings constitute 43.0% 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 Global Real Estate Sec Instl is part of the Equity global asset class and is within the Sector Equity fund group. Principal Global Real Estate Sec Instl has 33.9% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 64.3%. There is 33.9% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.3% (0.3% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Principal Global Real Estate Sec Instl has 1.5% of the portfolio in cash.

Assets Under Management

The fund has $1 billion in total assets, which is above the $200 million average for the Global 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.

POSIX 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 Global Real Estate Sec Instl expense ratio is high compared to funds in the Global Real Estate category. Principal Global Real Estate Sec Instl has an expense ratio of 0.94%, which is 19% 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 Global Real Estate Sec Instl has a portfolio turnover rate of 22%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 72% for the Global Real Estate category.

Recently, in the month of June 2026, Principal Global Real Estate Sec Instl returned 1.1%, which earned it a grade of C, as the Global Real Estate category had an average return of 0.9%. 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 Global Real Estate Sec Instl has a trailing yield of 2.40%, which is below the 2.90% 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 Global Real Estate Sec Instl Grades

Year to date, the fund has returned 9.6%, 1.3 percentage points better than the category, which translates into a grade of C. The fund has returned 11.1% over the past year (grade of D), 8.9% over the past three years (grade of C) and 0.9% per year over the past five years (grade of D) and 4.1% per year over the past 10 years (grade of C).

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