Principal has filed to launch the Capital Securities Fund in Class S shares. The fund will be sub-advised by Spectrum Asset Management, an indirect subsidiary of Principal Life.

According to the filing, the fund invests at least 80% of its net assets in preferred securities.  All of the preferred securities purchased by the fund are issued by companies with senior debt rated at the time of purchase BBB- or higher by Standard & Poor's Ratings Service or Baa3 or higher by Moody's Investor Service. The fund may invest up to 100% of its assets in below investment grade preferred securities which are rated at the time of purchase Ba1 or lower by Moody's and BB+ or lower by S&P, provided that the issuer has senior debt outstanding that is rated at the time of purchase BBB- or higher by S&P or Baa3 or higher by Moody's.

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