Fund Evaluator:
Principal SmallCap Value II J (PSMJX)
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Fund Details
Principal SmallCap Value II J Overview
Principal SmallCap Value II J (PSMJX) is an actively managed U.S. Equity Small Value fund. Principal Funds launched the fund in 2009.
The investment seeks long-term growth of capital. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies with small market capitalizations. It invests in value equity securities, an investment strategy that emphasizes buying equity securities that appear to be undervalued.
About Principal SmallCap Value II J (PSMJX)
There are 3 members of the management team with an average tenure of 6.61 years: James Fennessey (2009), May Tong (2025), Michael Messina (2025). Management tenure is more important for actively managed funds than passive index funds.
The fund has 2 primary benchmarks: Russell 2000 Value TR USD index with a weighting of 100% and Russell 3000 TR USD index with a weighting of 100%. Principal SmallCap Value II J has 1552 securities in its portfolio. The top 10 holdings constitute 15.4% 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 SmallCap Value II J is part of the Equity global asset class and is within the U.S. Equity fund group. Principal SmallCap Value II J has 2.2% of its portfolio invested in foreign issues. The overall assets allocated to domestic stock is 93.8%. There is 2.2% allocated to foreign stock, and 0.0% is allocated to preferred stocks. The bond allocation as a percentage of total assets is 0.8% (0.8% domestic bond, 0.0% foreign bond and 0.0% convertible bond). Principal SmallCap Value II J has 3.2% of the portfolio in cash.
Assets Under Management
The fund has $23 million in total assets, which is below the $417 million average for the Small Value 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.
PSMJX 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 SmallCap Value II J expense ratio is high compared to funds in the Small Value category. Principal SmallCap Value II J has an expense ratio of 1.21%, which is 4% 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 SmallCap Value II J has a portfolio turnover rate of 89%, indicating that holds its assets around 0.0 years. By way of comparison, the average portfolio turnover is 128% for the Small Value category.
Recently, in the month of July 2026, Principal SmallCap Value II J returned 0.6%, which earned it a grade of B, as the Small Value category had an average return of -0.4%. 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 SmallCap Value II J has a trailing yield of 0.85%, which is above the 0.77% 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 SmallCap Value II J Grades
Year to date, the fund has returned 16.8%, 3.3 percentage points worse than the category, which translates into a grade of D. The fund has returned 28.3% over the past year (grade of D), 11.2% over the past three years (grade of D) and 9.1% per year over the past five years (grade of C) and 9.5% per year over the past 10 years (grade of C).
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PSMJX Trailing NAV Total Returns Data as of 7/31/26
| Last Month |
Last Quarter |
Ann'l. 1Yr |
Ann'l. 3Yr |
Ann'l. 5Yr |
Ann'l. 10Yr |
|
| PSMJX Return (NAV) | 0.6% | 4.1% | 28.3% | 11.2% | 9.1% | 9.5% |
| PSMJX Grade | B | F | D | D | C | C |
| +/- Category | 0.9% | -2.2% | -2.3% | -2.1% | -0.0% | -0.4% |
| Small Value Avg | -0.4% | 6.4% | 30.6% | 13.4% | 9.1% | 9.9% |
| PSMJX Tax Cost Ratio | na | na | 2.5% | 2.3% | 3.0% | 2.4% |
PSMJX Annual NAV Total ReturnsData as of 7/31/26
| 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | |
| PSMJX Return (NAV) | 16.8% | 7.8% | 4.7% | 19.7% | -9.6% | 32.0% | 3.2% | 22.5% | -14.7% | 6.4% | 24.8% |
| PSMJX Grade | D | C | F | A | B | B | C | C | C | F | C |
| +/- Category | -3.3% | 1.2% | -5.0% | 3.9% | 0.7% | 1.8% | -0.9% | -0.4% | 0.0% | -3.8% | 0.1% |
| Small Value Avg | 20.1% | 6.6% | 9.7% | 15.8% | -10.3% | 30.3% | 4.1% | 23.0% | -14.7% | 10.2% | 24.7% |
| Risk Measures | |
| Standard Deviation: | 18.2% |
| Total Risk Index: | 1.49 - High |
| Category Risk Index: | 1.01 - Average |
| Category Risk Grade: | C (52% Rank) |
| Beta: | 0.98 |
| R-Squared: | 49% |
| Leveraged Fund: | No |
| Inverse Fund: | No |
| Portfolio Characteristics | |
| Equity Investment Style: | Small-Cap Value |
| Bond Investment Style: | na |
| Yield: | 0.9% |
| Dividend Distribution: | Annually |
| Cap Gains Distribution: | Annually |
| Total Assets: | $1261 Mil |
| Fund Total Assets: | $ 23 Mil |
| Share Class Type: | Other |
| Portfolio Turnover: | 90% |
Management Team
| Number of Managers: 3 | |||
| Longest Tenure: 17.2 years | |||
| Average Tenure: 6.6 years | |||
| Managers (Year): Fennessey James (2009), Tong May (2025), Messina Michael (2025) | |||
Portfolio Composition (as of 6/30/26)
| # of Holdings: | 1552 |
| % in Top 10 Holdings: | 15.4% |
| Fund is Non-Diversified: | No |
| % in Foreign Issues: | 2.2% |
Portfolio Allocation |
|
| Domestic Stock: | 93.8% |
| Foreign Stock: | 2.2% |
| Preferred Stock: | 0.0% |
| Domestic Bond: | 0.8% |
| Foreign Bond: | 0.0% |
| Convertible Bond: | 0.0% |
| Other: | 0.0% |
| Cash: | 3.2% |
Purchase Information
| Fund Family: | Principal Funds |
| Phone Number: | 800-222-5852 |
| Website: | www.principalfunds.com |
| Status: | Open |
| Inception Date: | March 2, 2009 |
| Min. Initial Purchase: | $1,000 |
| Min. Initial IRA Purchase: | $ 0 |
| True No-Load: | No |
| Front Load Maximum: | 0.00% |
| Deferred Charge Maximum: | 1.00% |
| Redemption Charge Maximum: | 0.00% |
| 12b-1 Fee: | 0.15% |
Expenses and Fees | |
| Expense Ratio (%): | 1.21% ( Rating : High ) |
| Category Average Expense Ratio (%): | 1.17% |
| Share Class: | Principal SmallCap Value II Instl |
| Min. Subsequent Purchase: | $ 100 |
| Min. Subsequent IRA Purchase: | $ 0 |
