Principal Funds has rolled out the Principal Opportunistic Municipal Fund, which can invest across a broad range of credit qualities, durations and geographic exposures, pursuing greater overall diversification.

Doug Gaylor, the fund’s portfolio manager, said that “being unconstrained by a benchmark or index means we can move up and down the municipal spectrum in terms of maturity, credit quality and geographic issuance. For example, a typical high-yield municipal bond fund would have its allocation to high yield set at 50% or more, and a regular municipal fund would have a maximum allocation of 25% to high-yield municipal bonds. In contract, the Opportunistic Municipal Fund has the ability to hold an allocation from zero to 60% of its holdings in high-yield issuance.”

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