Fund Evaluator:

Principal Diversified Real Asset A Overview

Principal Diversified Real Asset A (PRDAX) is an actively managed Allocation Global Moderate Allocation fund. Principal Funds launched the fund in 2010.

The investment seeks a long-term total return in excess of inflation. 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. It allocates its assets among general investment categories related to real assets, 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, commodities, and real estate.

About Principal Diversified Real Asset A (PRDAX)

There are 2 members of the management team with an average tenure of 8.82 years: May Tong (2021), Benjamin Rotenberg (2014). Management tenure is more important for actively managed funds than passive index funds.

The fund has 5 primary benchmarks: S&P Global Infrastructure NR USD index with a weighting of 35%, S&P Global Natural Resources NR USD index with a weighting of 20%, FTSE EPRA Nareit Developed NR USD index with a weighting of 25%, Bloomberg Commodity TR USD index with a weighting of 20% and MSCI ACWI NR USD index with a weighting of 100%. Principal Diversified Real Asset A has 361 securities in its portfolio. The top 10 holdings constitute 28.6% 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 Diversified Real Asset A is part of the Allocation global asset class and is within the Allocation fund group. Principal Diversified Real Asset A has 51.3% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 46.0%. There is 51.3% 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 Diversified Real Asset A has 2.3% of the portfolio in cash.

Assets Under Management

The fund has $49 million in total assets, which is below the $947 million average for the Global Moderate Allocation 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.

PRDAX 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 Diversified Real Asset A expense ratio is high compared to funds in the Global Moderate Allocation category. Principal Diversified Real Asset A has an expense ratio of 1.23%, which is 18% higher than its category average, making the fund expense ratio grade a D. 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 Diversified Real Asset A has a portfolio turnover rate of 85%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 64% for the Global Moderate Allocation category.

Recently, in the month of July 2026, Principal Diversified Real Asset A returned 2.8%, which earned it a grade of A, as the Global Moderate Allocation category had an average return of 0.3%. 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 Diversified Real Asset A has a trailing yield of 3.32%, which is above the 2.61% 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 Diversified Real Asset A Grades

Year to date, the fund has returned 12.7%, 4.5 percentage points better than the category, which translates into a grade of A. The fund has returned 20.9% over the past year (grade of A), 9.7% over the past three years (grade of F) and 5.9% per year over the past five years (grade of C) and 5.9% per year over the past 10 years (grade of F).

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