UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED

MANAGEMENT INVESTMENT COMPANIES

 Investment Company Act file number  811-23403

Principal Real Asset Fund

(Exact name of registrant as specified in charter)

711 High Street, Des Moines, IA 50309

(Address of principal executive offices)                                                         (Zip code)

Principal Global Investors, LLC, 801 Grand Avenue, Des Moines, IA 50309

(Name and address of agent for service)

Registrant’s telephone number, including area code: 515-235-1719

    Date of fiscal year end: March 31, 2025

    Date of reporting period: March 31, 2025

ITEM 1 – REPORT TO STOCKHOLDERS

(a) The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1).

(b) Not applicable.

Principal

Real

Asset

Fund

Annual

Report

March

31,

2025

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Table

of

Contents

Not

FDIC

or

NCUA

insured

May

lose

value

•

Not

a

deposit

•

No

bank

or

credit

union

guarantee

Not

insured

by

any

Federal

government

agency

Economic

&

Financial

Market

Review

1

Important

Fund

Information

3

Principal

Real

Asset

Fund

(unaudited)

4

Financial

Statements

5

Notes

to

Financial

Statements

9

Schedule

of

Investments

18

Financial

Highlights

(includes

performance

information)

22

Report

of

Independent

Registered

Public

Accounting

Firm

24

Shareholder

Expense

Example

25

1

Economic

&

Financial

Market

Review

Global

economic

growth

continues

to

trend

lower

with

policy

uncertainty

on

the

rise,

leading

to

GDP

growth

forecasts

being

revised

lower

across

the

globe.

U.S.

economic

strength

was

in

the

spotlight

over

the

last

twelve

months,

with

2.8%

real

GDP

growth

in

2024,

though

its

growth

advantage

against

other

developed

countries

is

narrowing.

In

the

U.S.,

soft

data

(such

as

ISM

manufacturing,

consumer

sentiment,

and

consumer

confidence)

is

already

showing

weakness,

but

hard

data

(such

as

retail

sales

and

nonfarm

payrolls)

remains

intact

for

now.

Elsewhere,

the

fiscal

overhaul

in

Germany

has

the

potential

to

boost

growth

over

the

long

run,

though

short-term

headwinds

may

prove

difficult

to

offset.

In

Japan,

the

reflation

story

continues,

with

growth

expanding

thanks

to

the

ongoing

spending

recovery.

China’s

economic

outlook

has

improved

since

the

September

2024

politburo

meeting

thanks

to

additional

policy

focusing

on

stabilizing

growth.

Global

inflation

fell

from

3.5%

in

March

2024

to

2.6%

in

March

2025,

getting

incrementally

closer

to

the

central

banks’

2%

target.

In

the

U.S.,

the

easing

of

core

services

inflation

and

short-lived

labor

data

softness

allowed

the

Federal

Reserve

(Fed)

to

start

cutting

rates

in

September

2024.

However,

the

cutting

cycle

was

paused

as

Trump

administration

tariffs

may

put

upward

pressure

on

inflation.

Notably,

the

Fed

cut

interest

rates

by

100bps

in

2024

before

the

pause.

The

latest

dot

plot

implies

50bps

of

cuts

still

to

come

in

2025.

Global

policy

rates

fell

by

71bps

in

the

last

twelve

months—17bps

in

emerging

markets

(EM)

and

105bps

in

developed

markets

(DM).

Global

manufacturing

activity

continues

to

be

a

mixed

bag.

Global

manufacturing

Purchasing

Manager’

Index

(PMI)

has

remained

below

50

for

the

last

twelve

months,

with

the

latest

reading

at

49.6.1

Emerging

market

PMIs

were

marginally

above

50,

while

developed

markets

were

below

50.

As

expected,

global

earnings

growth

bottomed

out

and

is

back

on

the

rise.

The

MSCI

All

Country

World

Index

(ACWI)

trailing

twelve

months

earnings

per

share

(TTM

EPS)

growth

was

up

5%

compared

to

the

same

time

last

year.

The

S&P

500

saw

10%

earnings

growth,

while

the

MSCI

World

ex-U.S.

Index

saw

a

4%

decline.

Within

the

U.S.,

large-cap

growth

stocks,

represented

by

the

Russell

1000

Growth

Index,

delivered

the

highest

earnings

growth

at

17%.

Small-cap,

mid-cap

and

value

stocks,

represented

by

the

S&P

Small-Cap

600

Index,

the

S&P

Mid-Cap

400

Index,

and

the

Russell

1000

Value

Index,

all

saw

weak

year-over-year

earnings

growth

at

-5%,

1%

and

2%,

respectively.

Emerging

markets,

represented

by

the

MSCI

Emerging

Markets

Index,

delivered

8%

earnings

growth.

Global

equities

slightly

outperformed

global

bonds

in

the

last

twelve

months—The

MSCI

ACWI

Index

recorded

a

7%

gain

year-over-year

while

the

Bloomberg

Global

Aggregate

Corporate

Index

gained

5%.

Within

equities,

emerging

markets

(MSCI

Emerging

Markets

Index)

outperformed

developed

markets

(MSCI

World

Index)

8%

vs.

7%.

Although

the

U.S.

exceptionalism

narrative

may

be

fading,

the

U.S.

(MSCI

U.S.

Index)

outperformed

developed

market

ex-U.S.

(MSCI

World

ex-U.S.

Index)

by

2%.

Elsewhere

within

major

markets,

U.S.

small-cap

(S&P

Small-Cap

600

Index)

was

the

worst

performer

with

a

3%

loss,

while

China

(MSCI

China

Index)

was

the

best

performer

with

a

40%

gain.

The

Bloomberg

U.S.

Treasury

Index

delivered

a

5%

gain

as

the

U.S.

10-year

treasury

yield

remained

the

same

as

a

year

ago

at

4.2%.

Global

high

yield

bonds

(Bloomberg

Global

High

Yield

Index)

outperformed

investment

grade

corporate

bonds

(Bloomberg

Global

Aggregate

Corporate

Index)

and

global

treasury

bonds

(Bloomberg

Global

Treasury

Index)

by

4%

and

7%,

respectively,

year-over-year.

The

DXY

Index,

a

proxy

for

USD

strength,

was

flat

compared

to

the

same

time

last

year.

Commodity

prices

(S&P

GSCI

Total

Return

Index)

gained

4%,

helped

by

a

strong

gold

rally

during

this

period.

Unless

otherwise

stated,

data

sources

are

Bloomberg,

FactSet,

and

Principal

Asset

Allocation.

Data

as

of

March

31,

2025.

1

In

global

PMI

readings,

a

number

above

50

means

that

manufacturing

activity

is

expanding,

and

a

number

below

50

indicates

contraction.

Index

descriptions:

MSCI

All

Country

World

Index

(ACWI)

includes

large

and

mid-cap

stocks

across

developed

and

emerging

market

countries.

MSCI

China

Index

captures

large-

and

mid-cap

representation

across

China

A

shares,

H

shares,

B

shares,

Red

chips,

P

chips

and

foreign

listings

(e.g.

ADRs).

MSCI

World

Index

captures

large-

and

mid-cap

representation

across

23

developed

market

countries.

MSCI

World

ex-U.S.

Index

captures

large-

and

mid-cap

representation

across

22

of

23

developed

market

countries--

excluding

the

United

States.

MSCI

Emerging

Markets

Index

consists

of

large-

and

mid-cap

companies

across

24

countries

and

represents

10%

of

the

world

market

capitalization.

The

index

covers

approximately

85%

of

the

free

float-adjusted

market

capitalization

in

each

of

the

24

countries.

MSCI

U.S.

Index

is

designed

to

measure

the

performance

of

the

large-

and

mid-cap

segments

of

the

U.S.

market.

Russell

1000

Growth

Index

measures

the

performance

of

the

large-cap

growth

segment

of

the

U.S.

equity

universe.

Russell

1000

Value

Index

measures

the

performance

of

the

large-cap

value

segment

of

the

U.S.

equity

universe.

Bloomberg

Global

Aggregate

Corporate

Index

is

a

flagship

measure

of

global

investment-grade

debt

from

24

local

currency

markets.

This

multi-currency

benchmark

includes

treasury,

government-related,

corporate,

and

securitized

fixed-rate

bonds

from

both

developed

and

emerging

market

issuers.

Bloomberg

Global

High

Yield

Index

is

a

multi-currency

flagship

measure

of

the

global

high

yield

debt

market.

The

index

represents

the

union

of

the

U.S.

High

Yield,

the

Pan-

European

High

Yield,

and

Emerging

Markets

Hard

Currency

High

Yield

indices.

Bloomberg

Global

Treasury

Index

tracks

fixed-rate,

local

currency

government

debt

of

investment-grade

countries,

including

both

developed

and

emerging

markets.

The

index

represents

the

treasury

sector

of

the

Global

Aggregate

Index

and

contains

issues

from

37

countries

denominated

in

24

currencies.

2

Economic

&

Financial

Market

Review

Bloomberg

U.S.

Treasury

Index

measures

U.S.

dollar-denominated,

fixed-rate,

nominal

debt

issued

by

the

U.S.

Treasury.

U.S.

Dollar

Index

(USDX,

DXY,

DX)

is

an

index

(or

measure)

of

the

value

of

the

United

States

dollar

relative

to

a

basket

of

foreign

currencies,

often

referred

to

as

a

basket

of

U.S.

trade

partners'

currencies.

Standard

&

Poor's

500

(S&P

500)

Index

is

a

market

capitalization-weighted

index

of

500

widely

held

stocks

often

used

as

a

proxy

for

the

stock

market.

S&P

Mid-Cap

400

Index,

more

commonly

known

as

the

S&P

400,

is

a

stock

market

index

from

S&P

Dow

Jones

Indices.

The

index

serves

as

a

gauge

for

the

U.S.

mid-cap

equities

sector

and

is

the

most

widely

followed

mid-cap

index.

S&P

Small-Cap

600

Index

is

a

stock

market

index

established

by

Standard

&

Poor's.

It

covers

roughly

the

small-cap

range

of

American

stocks,

using

a

capitalization-weighted

index.

S&P

GSCI

Total

Return

Index

is

an

index

of

24

exchange-traded

futures

contracts

that

represent

a

large

portion

of

the

global

commodities

market.

3

Important

Fund

Information

Securities

described

in

the

fund

commentary

may

no

longer

be

held

in

the

fund.

The

line

graph

on

the

following

page

illustrates

the

growth

of

a

hypothetical

$100,000

investment.

The

illustration

is

based

on

performance

of

Class

Y

shares.

The

performance

of

other

share

classes

will

differ.

Investment

results

shown

represent

historical

performance

and

do

not

guarantee

future

results.

Your

investment’s

returns

and

principal

values

will

fluctuate

with

changes

in

interest

rates

and

other

market

conditions

so

the

value,

when

redeemed,

may

be

worth

more

or

less

than

original

costs.

Current

performance

may

be

lower

or

higher

than

the

performance

shown.

For

more

information,

including

the

most

recent

month-end

performance,

call

your

financial

professional,

or

call

800-222-5852.

A

sales

charge

may

apply

as

follows:

Class

A

shares:

maximum

up-front

sales

charges

on

sales

based

on

declining

rates

which

begin

at

5.75%.

Institutional

and

Class

Y

shares

do

not

have

a

sales

charge.

See

the

prospectus

for

details.

Performance

listed

with

sales

charge

reflects

the

maximum

sales

charge.

.

4

Principal

Real

Asset

Fund

Investment

Advisor:

Principal

Global

Investors,

LLC

Sub-Advisors:

Principal

Real

Estate

Investors,

LLC

Average

Annual

Total

Returns*

as

of

March

31,

2025

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

Fund

seeks

to

provide

long-term

total

return

(after

fund

fees

and

expenses)

in

excess

of

inflation.

Under

normal

circumstances,

the

Fund

invests

at

least

80%

of

its

net

assets,

plus

any

borrowings

for

investment

purposes,

in

real

assets

and

real

asset

companies.

It

invests

in

real

assets

and

real

asset

companies

directly,

and

indirectly

through

other

entities,

including

private

institutional

investment

funds

that

pursue

these

strategies.

It

is

non-diversified.

The

real

asset

universe

delivered

a

wide

range

of

returns

for

the

one-year

period

ending

March

31,

2025.

Global

infrastructure

equity

index

was

up

more

than

+17%,

benefiting

from

the

trend

toward

digitalization

and

the

accompanying

boom

in

power

consumption.

Meanwhile

global

natural

resource

equities

fell

more

than

-4%,

as

energy

prices

are

now

in

correction

mode.

In

the

private

real

asset

space,

private

infrastructure

deal

flow

and

returns

continued

positively.

Meanwhile,

private

real

estate

appears

to

be

finding

a

trough

in

valuations,

while

transaction

activity

improves

from

a

low

level.

Within

liquid

real

assets,

global

infrastructure

and

global

real

estate

securities

provided

positive

returns

for

the

Fund,

while

global

natural

resource

equities

were

negative.

Within

the

private

infrastructure

portfolio,

most

sectors

produced

positive

performance

including

utilities,

transportation,

energy

infrastructure

and

digital

infrastructure.

Within

the

private

natural

resources

portfolio,

U.S.

core

farmland

performed

well,

as

did

core

U.S.

timberland.

Within

private

real

estate,

there

was

mixed

performance

as

valuations

look

to

have

bottomed.

Value

of

a

$10

0,000

Investment*

June

25,

2019

-

March

31,

2025

1-Year

5-Year

Since

Inception

Inception

Date

Class

A

Shares

Excluding

Sales

Charge

3.28%

10.20%

4.37%

6/25/19

Including

Sales

Charge

-2.65%

8.91%

3.30%

Class

Y

Shares

3.82%

10.76%

4.89%

6/25/19

Institutional

Shares

3.62%

10.55%

4.69%

6/25/19

*Performance

assumes

reinvestment

of

all

dividends

and

capital

gains.

Performance

does

not

reflect

the

impact

of

federal,

state,

or

municipal

taxes.

If

it

did,

performance

would

be

lower.

**Performance

shown

for

the

benchmark

assumes

reinvestment

of

all

dividends

and

distributions.

Indices

are

unmanaged,

and

individuals

cannot

invest

directly

in

an

index.

Statement

of

Assets

and

Liabilities

March

31,

2025

5

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Principal

Real

Asset

Fund

Investment

in

securities--at

cost

............................................................................................................................

$

165,016‌

Foreign

currency--at

cost

....................................................................................................................................

$

244‌

Assets

Investment

in

securities--at

value 

............................................................................................................................

$

171,047‌

Foreign

currency--at

value

....................................................................................................................................

244‌

Receivables:

Dividends

and

interest

...................................................................................................................................

653‌

Expense

reimbursement

from

Manager

.................................................................................................................

233‌

Investment

securities

sold

...............................................................................................................................

243‌

Prepaid

expenses

..............................................................................................................................................

23‌

Total

Assets  

172,443‌

Liabilities

(a)

Accrued

management

and

investment

advisory

fees

..........................................................................................................

223‌

Accrued

transfer

agent

fees

...................................................................................................................................

29‌

Accrued

chief

compliance

officer

fees

........................................................................................................................

1‌

Accrued

directors'

expenses

...................................................................................................................................

42‌

Accrued

professional

fees

.....................................................................................................................................

259‌

Accrued

other

expenses

.......................................................................................................................................

29‌

Cash

overdraft

.................................................................................................................................................

206‌

Payables:

Investment

securities

purchased

........................................................................................................................

7,317‌

Total

Liabilities  

8,106‌

Net

Assets

Applicable

to

Outstanding

Shares

..............................................................................................................

$

164,337‌

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

.................................................................................................................

$

152,313‌

Total

distributable

earnings

(accumulated

loss)

...............................................................................................................

12,024‌

Total

Net

Assets 

$

164,337‌

Capital

Stock

(par

value:

$.01

per

share):

Net

Asset

Value

Per

Share:

Class

A

:

Net

Assets

............................................................................................................................................

$

833‌

Shares

Issued

and

Outstanding

..........................................................................................................................

32‌

Net

Asset

Value

per

share

...............................................................................................................................

$

25

.84‌

(b)

Maximum

Offering

Price

................................................................................................................................

$

27

.42‌

Class

Y

:

Net

Assets

............................................................................................................................................

$

162,159‌

Shares

Issued

and

Outstanding

..........................................................................................................................

6,163‌

Net

Asset

Value

per

share

...............................................................................................................................

$

26

.31‌

Institutional

:

Net

Assets

.......................................................................................................................................

$

1,345‌

Shares

Issued

and

Outstanding

..........................................................................................................................

52‌

Net

Asset

Value

per

share

...............................................................................................................................

$

26

.00‌

(a)

See

Note

3

for

details

of

any

unfunded

commitments.

(b)

Redemption

price

per

share

is

equal

to

net

asset

value

per

share

less

any

applicable

contingent

deferred

sales

charge.

Statement

of

Operations

Year

Ended

March

31,

2025

6

See

accompanying

notes.

Amounts

in

thousands

Principal

Real

Asset

Fund

Net

Investment

Income

(Loss)

Income:

Dividends

...................................................................................................................................................

$

6,946‌

Withholding

tax

............................................................................................................................................

(

151‌

)

Total

Income

6,795‌

Expenses:

Management

and

investment

advisory

fees

................................................................................................................

2,551‌

Distribution

f

ees

-

Class

A

.................................................................................................................................

2‌

Registration

fees

-

Class

A

.................................................................................................................................

15‌

Registration

fees

-

Class

Y

.................................................................................................................................

15‌

Registration

fees

-

Institutional

............................................................................................................................

15‌

Shareholder

meeting

expense

..............................................................................................................................

1‌

Shareholder

reports

-

Class

A

..............................................................................................................................

18‌

Shareholder

reports

-

Institutional

.........................................................................................................................

5‌

Transfer agent

fees

-

Class

A

...............................................................................................................................

2‌

Transfer agent

fees

-

Class

Y

...............................................................................................................................

37‌

Transfer agent

fees

-

Institutional

..........................................................................................................................

42‌

Chief

compliance

officer

expenses

.........................................................................................................................

3‌

Custodian

fees

..............................................................................................................................................

25‌

Directors'

expenses

.........................................................................................................................................

204‌

Professional fees

...........................................................................................................................................

428‌

Other

expenses

.............................................................................................................................................

96‌

Total

Gross

Expenses

3,459‌

Less: Reimbursement

from

Manager

......................................................................................................................

1,230‌

Less:

Reimbursement

from

Manager

-

Class

A

............................................................................................................

37‌

Less:

Reimbursement

from

Manager

-

Class

Y

............................................................................................................

715‌

Less:

Reimbursement

from

Manager

-

Institutional

.......................................................................................................

68‌

Total

Net

Expenses

1,409‌

Net

Investment

Income

(Loss)

5,386‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

foreign

currencies

Net

realized

gain

(loss)

from:

Investment

transactions

....................................................................................................................................

748‌

Foreign

currency

transactions

..............................................................................................................................

1‌

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

.................................................................................................................................................

(

526‌

)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

foreign

currencies

223‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

5,609‌

Statement

of

Changes

in

Net

Assets

7

See

accompanying

notes.

Amounts

in

thousands

Principal

Real

Asset

Fund

Year

Ended

March

31,

2025

Year

Ended

March

31,

2024

Operations

Net

investment

income

(loss)

................................................................................................................

$

5,386‌

$

3,499‌

Net

realized

gain

(loss)

on

investments

and

foreign

currencies

.............................................................................

749‌

(

201‌

)

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

.......................................................................

(

526‌

)

(

21‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

5,609‌

3,277‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.........................................................................

(

2,516‌

)

(

3,126‌

)

Total

Dividends

and

Distributions

(

2,516‌

)

(

3,126‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

........................................................................................

14,384‌

(

13,021‌

)

Total

Increase

(Decrease)

in

Net

Assets

17,477‌

(

12,870‌

)

Net

Assets

Beginning

of

period

..........................................................................................................................

146,860‌

159,730‌

End

of

period

................................................................................................................................

$

164,337‌

$

146,860‌

Class

A

Class

Y

Institutional

Capital

Share

Transactions:

Year

Ended

March

31,

2025

Dollars:

Sold

.........................................................................................

$

4‌

$

44,001‌

$

25‌

Reinvested

....................................................................................

7‌

2,468‌

5‌

Redeemed

.....................................................................................

(

120‌

)

(

23,000‌

)

(

9,006‌

)

Net

Increase

(Decrease)

$

(

109‌

)

$

23,469‌

$

(

8,976‌

)

Shares:

Sold

.........................................................................................

–‌

1,688‌

1‌

Reinvested

....................................................................................

–‌

96‌

–‌

Redeemed

.....................................................................................

(

5‌

)

(

881‌

)

(

356‌

)

Net

Increase

(Decrease)

(

5‌

)

903‌

(

355‌

)

Year

Ended

March

31,

2024

Dollars:

Sold

.........................................................................................

$

164‌

$

6,001‌

$

724‌

Reinvested

....................................................................................

7‌

2,884‌

7‌

Redeemed

.....................................................................................

–‌

(

21,700‌

)

(

1,108‌

)

Net

Increase

(Decrease)

$

171‌

$

(

12,815‌

)

$

(

377‌

)

Shares:

Sold

.........................................................................................

7‌

237‌

29‌

Reinvested

....................................................................................

–‌

113‌

–‌

Redeemed

.....................................................................................

–‌

(

861‌

)

(

44‌

)

Net

Increase

(Decrease)

7‌

(

511‌

)

(

15‌

)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

March

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

.............................................

$

(

13‌

)

$

(

2,468‌

)

$

(

35‌

)

Total

Dividends

and

Distributions

$

(

13‌

)

$

(

2,468‌

)

$

(

35‌

)

Year

Ended

March

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

.............................................

$

(

16‌

)

$

(

2,885‌

)

$

(

225‌

)

Total

Dividends

and

Distributions

$

(

16‌

)

$

(

2,885‌

)

$

(

225‌

)

Statement

of

Cash

Flows

Year

Ended

March

31,

2025

8

See

accompanying

notes.

Amounts

in

thousands

Principal

Real

Asset

Fund

Cash

Flows

from

Operating

Activities:

Net increase

in

net

assets

from

operations

..................................................................................

$

5,609

Adjustments

to

reconcile

net

increase

in

net

assets

from

operations

to

net

cash

used

in

operating

activities:

Purchase

of

investment

securities

...................................................................................

(60,439)

Proceeds

from

sale

of

investment

securities

............................................................................

46,579

Net

sales

or

(purchases)

of

short

ter

m

securities

.........................................................................

(10,294)

Capital

gains

and

return

of

capital

distributions

from

investments

.............................................................

124

Change

in

unrealized

(appreciation)

depreciation

on

investments

.............................................................

526

Net

realized

(gain)

loss

from

investments

..............................................................................

(748)

(Increase)

decrease

in

dividends

and

interest

receivable

....................................................................

(215)

(Increase)

decrease

in

investment

securities

sold

.........................................................................

198

Increase

(decrease)

in

accrued

fees,

expenses,

and

expense

reimbursement

from

Manager

...........................................

(9)

Increase

(decrease)

in

investment

securities

purchased

....................................................................

6,539

Net

cash  used

in

operating

activities

(12,130)

Cash

Flows

from

Financing

Activities:

Increase

(decrease)

in

cash

overdraft

.................................................................................

206

Proceeds

from

shares

sold

.........................................................................................

44,030

Payment

on

shares

redeemed

.......................................................................................

(32,126)

Dividends

and

distributions

paid

to

shareholders

.........................................................................

(36)

Net

cash  provided

by

financing

activities

12,074

Net

decrease in

cash

.............................................................................................

(56)

Cash

and

foreign

currency:

Beginning

of

period

.............................................................................................

$

300

End

of

period

..................................................................................................

$

244

Supplemental

disclosure

of

cash

flow

information:

Reinvestment

of

dividends

and

distributions

...........................................................................

$

2,480

Notes

to

Financial

Statements

Principal

Real

Asset

Fund

March

31,

2025

9

1.

Organization

Principal

Real

Asset

Fund

(the

"Fund")

is

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

“1940

Act”)

as

a

non-

diversified,

closed-end

management

investment

company.

The

Fund

continuously

offers

three

classes

of

shares:

Class

A,

Class

Y,

and

Institutional

Class.

The

Fund

was

organized

as

a

Delaware

statutory

trust

on

September

21,

2018

pursuant

to

an

Agreement

and

Declaration

of

Trust

governed

by

the

State

of

Delaware.

Principal

Global

Investors,

LLC

(the

“Manager”)

serves

as

the

Fund’s

manager

and

advisor.

The

Fund

is

structured

as

an

interval

fund,

meaning

it

conducts

quarterly

repurchase

offers

of

no

less

than

5%

and

no

more

than

25%

of

the

Fund’s

outstanding

shares

at

net

asset

value.

Repurchase

offers

of

more

than

5%

are

made

solely

at

the

discretion

of

the

Fund’s

Board

of

Trustees

(the

“Board”),

and

shareholders

should

not

rely

on

any

expectation

of

repurchase

offers

being

made

in

excess

of

5%.

Shareholders

should

consider

the

Fund’s

shares

illiquid.

The

Fund’s

shares

are

not

listed

on

any

national

securities

exchange

and

are

not

publicly

traded.

There

is

currently

no

secondary

market

for

the

shares,

and

the

Fund

expects

that

no

secondary

market

will

develop.

An

unlimited

number

of

shares

has

been

authorized

under

the

Agreement

and

Declaration

of

Trust.

Only

eligible

purchasers

can

buy

shares

of

the

Fund

in

that

share

class.

The

Manager

and

Principal

Funds

Distributor,

Inc.

(the

“Distributor”)

(an

affiliate

of

the

Manager),

the

principal

distributor

of

the

Fund,

reserve

the

right

to

broaden,

limit,

and

change

the

designation

of

eligible

purchasers

without

notice.

Shares

of

the

Fund

are

only

sold

in

U.S.

jurisdictions.

Subject

to

eligibility

and

minimum

initial

investment

requirements,

shares

of

the

Fund

may

be

purchased

directly

or

through

intermediary

organizations,

such

as

broker-dealers,

insurance

companies,

plan

sponsors,

third

party

administrators,

and

retirement

plans.

Minimum

initial

investment

requirements

are

$25,000

for

Class

A

shares

and

$100,000

for

Class

Y

and

Institutional

Class

shares.

Effective

September

1,

2023,

the

Fund

changed

its

name

from

Principal

Diversified

Select

Real

Asset

Fund

to

Principal

Real

Asset

Fund.

In

addition

to

the

name

change,

the

Fund’s

diversification

classification

changed

from

“diversified”

to

“non-diversified”

with

a

change

to

the

related

fundamental

policy.

The

Fund

is

an

investment

company

and

applies

specialized

accounting

and

reporting

under

Accounting

Standards

Codification

Topic

946,

Financial

Services

-

Investment

Companies

.

The

Fund

has

not

provided

financial

support

and

is

not

contractually

required

to

provide

financial

support

to

any

investee.

All

classes

of

shares

of

the

Fund

represent

interests

in

the

same

portfolio

of

investments

and

will

vote

together

as

a

single

class

except

where

otherwise

required

by

law

or

as

determined

by

the

Board.

In

addition,

the

Board

declares

separate

dividends

on

each

class

of

shares.

The

Fund

may

offer

additional

classes

of

shares

in

the

future.

2.

Significant

Accounting

Policies

The

preparation

of

financial

statements

in

conformity

with

U.S.

generally

accepted

accounting

principles

(“U.S.

GAAP”)

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

and

disclosure

of

contingent

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

reported

amounts

of

revenues

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

The

following

summarizes

the

significant

accounting

policies

of

the

Fund:

Security

Valuation.

The

Fund

values

securities,

including

exchange-traded

funds,

for

which

market

quotations

are

readily

available

at

fair

value,

which

is

determined

using

the

last

reported

sale

price.

If

no

sales

are

reported,

as

is

regularly

the

case

for

some

securities

traded

over-the-counter,

securities

are

valued

using

the

last

reported

bid

price

or

an

evaluated

bid

price

provided

by

a

pricing

service.

Pricing

services

use

modeling

techniques

that

incorporate

security

characteristics

such

as

current

quotations

by

broker/dealers,

coupon,

maturity,

quality,

type

of

issue,

trading

characteristics,

other

yield

and

risk

factors,

and

other

market

conditions

to

determine

an

evaluated

bid

price.

When

reliable

market

quotations

are

not

considered

to

be

readily

available,

which

may

be

the

case,

for

example,

with

respect

to

restricted

securities,

certain

debt

securities,

preferred

stocks,

and

foreign

securities,

the

investments

are

valued

at

their

fair

value

as

determined

in

good

faith

by

the

Manager

under

procedures

established

and

periodically

reviewed

by

the

Board.

The

Fund

invests

in

other

publicly

traded

investment

funds

which

are

valued

at

the

respective

fund’s

net

asset

value.

In

addition,

the

Fund

invests

a

portion

of

its

assets

in

private

investment

funds

which

are

valued

at

fair

value

based

upon

the

net

asset

value

reported

on

a

periodic

basis.

In

the

event

that

a

net

asset

value

is

not

provided

by

a

private

investment

fund

following

the

end

of

the

period,

the

Fund’s

fair

valuation

procedures

will

be

followed,

which

includes

reviewing

investor

statements

and

trade

activity.

The

appropriateness

of

the

fair

value

of

these

private

investment

funds

is

monitored

by

the

Manager.

The

value

of

foreign

securities

used

in

computing

the

net

asset

value

per

share

is

generally

determined

as

of

the

close

of

the

foreign

exchange

where

the

security

is

principally

traded.

Events

that

occur

after

the

close

of

the

applicable

foreign

market

or

exchange

but

prior

to

the

calculation

Notes

to

Financial

Statements

Principal

Real

Asset

Fund

March

31,

2025

10

of

the

Fund’s

net

asset

values

are

reflected

in

the

Fund’s

net

asset

values

and

these

securities

are

valued

at

fair

value.

Many

factors,

provided

by

independent

pricing

services,

are

reviewed

in

the

course

of

making

a

good

faith

determination

of

a

security’s

fair

value,

including,

but

not

limited

to,

price

movements

in

American

depository

receipts

(“ADRs”),

futures

contracts,

industry

indices,

general

indices,

and

foreign

currencies.

To

the

extent

the

Fund

invests

in

foreign

securities

listed

on

foreign

exchanges

which

trade

on

days

on

which

the

Fund

does

not

determine

net

asset

values,

for

example

weekends

and

other

customary

national

U.S.

holidays,

the

Fund’s

net

asset

values

could

be

significantly

affected

on

days

when

shareholders

cannot

purchase

or

redeem

shares.

Certain

securities

issued

by

companies

in

emerging

market

countries

may

have

more

than

one

quoted

valuation

at

any

given

point

in

time,

sometimes

referred

to

as

a

“local”

price

and

a

“premium”

price.

The

premium

price

is

often

a

negotiated

price,

which

may

not

consistently

represent

a

price

at

which

a

specific

transaction

can

be

effected.

It

is

the

policy

of

the

Fund

to

value

such

securities

at

prices

at

which

it

is

expected

those

shares

may

be

sold,

and

the

Manager

or

any

sub-advisor

is

authorized

to

make

such

determinations

subject

to

such

oversight

by

the

Board

as

may

occasionally

be

necessary.

Currency

Translation.

Foreign

holdings

are

translated

to

U.S.

dollars

using

the

exchange

rate

at

the

daily

close

of

the

New

York

Stock

Exchange.

The

identified

cost

of

the

Fund’s

holdings

is

translated

at

approximate

rates

prevailing

when

acquired.

Income

and

expense

amounts

are

translated

at

approximate

rates

prevailing

when

received

or

paid,

with

daily

accruals

of

such

amounts

reported

at

approximate

rates

prevailing

at

the

date

of

valuation.

Since

the

carrying

amount

of

the

foreign

securities

is

determined

based

on

the

exchange

rate

and

market

values

at

the

close

of

the

period,

it

is

not

practicable

to

isolate

that

portion

of

the

results

of

operations

arising

as

a

result

of

changes

in

the

foreign

exchange

rates

from

the

fluctuations

arising

from

changes

in

the

market

prices

of

securities

during

the

period.

Net

realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

trade

and

settlement

dates

on

security

transactions,

and

the

difference

between

the

amount

of

dividends,

interest

income,

interest

expense,

and

foreign

withholding

taxes

recorded

on

the

books

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

appreciation

(depreciation)

on

translation

of

assets

and

liabilities

in

foreign

currencies

arise

from

changes

in

the

exchange

rate

relating

to

assets

and

liabilities,

other

than

investments

in

securities,

purchased

and

held

in

non-U.S.

denominated

currencies.

The

Fund

held

securities

denominated

in

foreign

currencies

that

exceeded

5%

of

net

assets

as

of

March

31,

2025

as

follows:

Income

and

Investment

Transactions.

The

Fund

records

investment

transactions

on

a

trade

date

basis.

Trade

date

for

senior

floating

rate

interests

purchased

in

the

primary

market

is

considered

the

date

on

which

the

loan

allocations

are

determined.

Trade

date

for

senior

floating

rate

interests

purchased

in

the

secondary

market

is

the

date

on

which

the

transaction

is

entered

into.

The

identified

cost

basis

has

been

used

in

determining

the

net

realized

gain

or

loss

from

investment

transactions

and

unrealized

appreciation

or

depreciation

of

investments.

The

Fund

records

dividend

income

on

the

ex-dividend

date,

except

dividend

income

from

foreign

securities

whereby

the

ex-dividend

date

has

passed;

such

dividends

are

recorded

as

soon

as

the

Fund

is

informed

of

the

ex-dividend

date.

Interest

income

is

recognized

on

an

accrual

basis.

Discounts

and

premiums

on

securities

are

accreted/amortized,

respectively,

on

the

level

yield

method

over

the

expected

lives

of

the

respective

securities.

Callable

debt

securities

purchased

at

a

premium

are

amortized

to

the

earliest

call

date

and

to

the

callable

amount,

if

other

than

par.

The

Fund

allocates

all

income

and

realized

and

unrealized

gains

or

losses

on

a

daily

basis

to

each

class

of

shares

based

upon

the

relative

proportion

of

the

value

of

shares

outstanding

of

each

class.

Distributions

from

Real

Estate

Investment

Trusts

(“REITs”)

may

be

characterized

as

ordinary

income,

net

capital

gain,

or

a

return

of

capital

to

the

Fund.

The

proper

characterization

of

distributions

from

REITs

is

generally

not

known

until

after

the

end

of

each

calendar

year.

As

such,

estimates

are

used

in

reporting

the

character

of

income

and

distributions

for

financial

statement

purposes.

Distributions

from

private

investment

funds

are

recorded

as

ordinary

income

and

are

included

in

dividend

income

on

the

statement

of

operations.

Expenses.

Expenses

directly

attributed

to

the

Fund

are

charged

to

the

Fund.

Other

expenses

not

directly

attributed

to

the

Fund

are

apportioned

among

the

registered

investment

companies

managed

by

the

Manager.

Management

fees

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

the

value

of

shares

outstanding

of

each

class.

Expenses

specifically

attributable

to

a

particular

class

are

charged

directly

to

such

class

and

are

included

separately

in

the

statement

of

operations.

Dividends

and

Distributions

to

Shareholders.

Dividends

and

distributions

to

shareholders

of

the

Fund

are

recorded

on

the

ex-dividend

date.

Dividends

and

distributions

to

shareholders

from

net

investment

income

and

net

realized

gain

from

investments

are

determined

in

accordance

with

federal

tax

regulations,

which

may

differ

from

U.S.

GAAP.

These

differences

are

primarily

due

to

differing

treatments

for

foreign

currency

transactions,

REITs,

passive

foreign

investment

companies,

partnership

investments,

losses

deferred

due

to

wash

sales,

and

paydowns.

Permanent

book

and

tax

basis

differences

are

reclassified

within

the

capital

accounts

based

on

federal

tax-basis

treatment;

temporary

differences

do

not

Principal

Real

Asset

Fund

Euro

5

.1%

2.

Significant

Accounting

Policies

(continued)

Notes

to

Financial

Statements

Principal

Real

Asset

Fund

March

31,

2025

11

require

reclassification.

To

the

extent

dividends

and

distributions

exceed

current

and

accumulated

earnings

and

profits

for

federal

income

tax

purposes,

they

are

reported

as

return

of

capital

distributions.

Federal

Income

Taxes.

No

provision

for

federal

income

taxes

is

considered

necessary

because

the

Fund

intends

to

qualify

as

a

“regulated

investment

company”

under

the

Internal

Revenue

Code

and

intends

to

distribute

each

year

substantially

all

of

its

net

investment

income

and

realized

capital

gains

to

shareholders.

Management

evaluates

tax

positions

taken

or

expected

to

be

taken

in

the

course

of

preparing

the

Fund’s

tax

returns

to

determine

whether

it

is

“more

likely

than

not”

that

each

tax

position

would

be

sustained

upon

examination

by

a

taxing

authority

based

on

the

technical

merits

of

the

position.

Tax

positions

not

deemed

to

meet

the

“more

likely

than

not”

threshold

would

be

recorded

as

a

tax

benefit

or

expense

in

the

current

year.

The

Fund

recognizes

interest

and

penalties,

if

any,

related

to

unrecognized

tax

positions

as

tax

expense

on

the

statements

of

operations.

During

the

year

ended

March

31,

2025,

the

Fund

did

not

record

any

such

tax

benefit

or

expense

in

the

accompanying

financial

statements.

The

statute

of

limitations

remains

open

for

the

last

three

years,

once

a

return

is

filed.

No

examinations

are

in

progress

at

this

time.

Foreign

Taxes.

The

Fund

may

be

subject

to

foreign

income

taxes

imposed

by

certain

countries

in

which

it

invests.

Foreign

income

taxes

are

accrued

by

the

Fund

as

a

reduction

of

income.

This

amount

is

shown

as

withholding

tax

on

the

statement

of

operations.

In

consideration

of

recent

decisions

rendered

by

European

court,

the

Fund

may

file

tax

reclaims

for

taxes

withheld

in

prior

years.

Due

to

the

uncertainty

regarding

collectability

and

timing

of

the

reclaims,

among

other

factors,

a

corresponding

receivable

will

only

be

recognized

when

the

tax

position

meets

the

“more

likely

than

not”

threshold.

Any

tax

reclaims

received

are

included

in

dividends

income

on

the

statement

of

operations.

Recent

Accounting

Pronouncements.

In

March

2020,

the

Financial

Accounting

Standards

Board

("FASB")

issued

Accounting

Standards

Update

("ASU")

No.

2020-04

Reference

Rate

Reform

(Topic

848);

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting,

which

provides

optional

guidance

for

a

limited

period

of

time

to

ease

the

potential

burden

in

accounting

for

(or

recognizing

the

effects

of)

reference

rate

reform.

The

guidance

is

applicable

to

contracts

referencing

London

Interbank

Offered

Rate

("LIBOR")

or

another

reference

rate

that

is

expected

to

be

discontinued

due

to

reference

rate

reform. The

ASU

is

effective

as

of

March

12,

2020

and

generally

can

be

applied

through

December

31,

2022.

In

December

2022,

the

FASB

issued

ASU

No.

2022-06

Reference

Rate

Reform

(Topic

848):

Deferral

of

the

Sunset

Date

of

Topic

848

which

updates

and

clarifies

ASU

No.

2020-04.

The amendments

in

this ASU

defer

the

sunset

date

of

Topic

848

from

December

31,

2022,

to

December

31,

2024. The

impact

of

these

ASUs did

not

have

a

material

impact

on

the

Fund’s

financial

statements.

In

June

2022,

the

FASB

issued

ASU

No.

2022-03

Fair

Value

Measurement

(Topic

820);

Fair

Value

Measurement

of

Equity

Securities

Subject

to

Contractual

Sale

Restrictions,

which

provides

clarifying

guidance

that

a

contractual

restriction

on

the

sale

of

an

equity

security

is

not

considered

part

of

the

unit

of

account

of

the

equity

security

and,

therefore,

is

not

considered

in

measuring

fair

value.

The

ASU

is

effective

for

fiscal

years

beginning

after

December

15,

2023,

and

interim

periods

within

those

fiscal

years.

As

of

April

1,

2024,

the

Fund

has

adopted

the

ASU

and

there

was

no

material

impact

to

th

e

Fund. Required

disclosures

were

added,

as

applicable. 

In

November

2023,

the

FASB

issued

ASU

No.

2023-07

Segment

Reporting

(Topic

280);

Improvements

to

Reportable

Segment

Disclosures,

which

improves

reportable

segment

disclosure

requirements,

primarily

through

enhanced

disclosures.

The

ASU

is

effective

for

fiscal

years

beginning

after

December

15,

2023,

and

interim

periods

within

fiscal

years

beginning

after

December

15,

2024.

As

of

April

1,

2024,

the

Fund

has

adopted

the

ASU

and

added

required

disclosures,

as

applicable.

In

December

2023,

the

FASB

issued

ASU

No.

2023-09

Income

Taxes

(Topic

740);

Improvements

to

Income

Tax

Disclosures,

which

enhances

the

transparency

and

decision

usefulness

of

income

tax

disclosures

primarily

related

to

rate

reconciliation,

disaggregation

of

income

taxes

paid,

and

other

income

tax-related

disclosures.

The

ASU

is

effective

for

annual

periods

beginning

after

December

15,

2024.

Management

is

currently

evaluating

the

impact

of

applying

the

ASU

to

the

Fund’s

financial

statements. 

3.

Operating

Policies

Borrowings.

T

he

Fund

participates

in

a

line

of

credit

with

a

bank

which

allows

a

borrowing

commitment

amount

of

up

to

$15

million.

Borrowings

may

be

used

for

investment

purposes,

to

meet

repurchase

requests

and/or

to

facilitate

the

handling

of

unusual

or

unanticipated

short-term

cash

requirements.

The

Fund

will

pledge

securities

as

collateral

for

borrowing

on

the

line

of

credit

and

maintain

an

aggregate

collateral

value

not

less

than

the

outstanding

borrowing

amount

at

all

times.

Interest

is

charged

at

an

annual

rate

equal

to

the

Overnight

Bank

Funding

Rate

(“OBFR”)

plus

0.90%.

Additionally,

a

commitment

fee

is

charged

at

an

annual

rate

of

0.40%

on

any

day

when

the

outstanding

borrowing

amount

is

less

than

90%

of

the

borrowing

commitment

amount.

The

interest

expense

and

commitment

fee

associated

with

these

borrowings

is

included

in

other

expenses

on

the

statement

of

operations.

There

were

no

outstanding

borrowings

as

of

March

31,

2025

.

During

the

year

ended

March

31,

2025

,

the

Fund

did

not

borrow

against

the

line

of

credit.

2.

Significant

Accounting

Policies

(continued)

Notes

to

Financial

Statements

Principal

Real

Asset

Fund

March

31,

2025

12

Cross

Trades.

The

Fund

may

engage

in

cross

trades.

A

cross

trade

is

a

purchase

or

sale

transaction

between

affiliated

portfolios

executed

directly

or

through

an

intermediary.

Mutual

funds

and

other

managed

portfolios

may

be

considered

affiliated

if

they

have

a

common

investment

advisor,

so

a

fund

may

be

considered

affiliated

with

any

portfolio

for

which

the

Fund's

sub-advisor

acts

as

an

investment

advisor.

Such

transactions

are

permissible

provided

that

the

conditions

of

Rule

17a-7

under

the

1940

Act

are

satisfied.

For

the

year

 ended

March

31,

2025

,

the

Fund

did

not

engage

in

cross

trades.

Foreign

Currency

Contracts.

The

Fund

may

be

subject

to

foreign

currency

exchange

rate

risk

in

the

normal

course

of

pursuing

the

Fund's

investment

objectives.

The

Fund

may

use

foreign

currency

contracts

to

gain

exposure

to,

or

hedge

against

changes

in

the

value

of

foreign

currencies. The

Fund enters

into

forward

contracts

to

purchase

and

sell

foreign

currencies

at

a

specified

future

date

at

a

fixed

exchange

rate.

Forward

foreign

currency

contracts

are

valued

at

the

forward

rate,

and

are

marked-to-market

daily.

The

change

in

fair

value

is

recorded

by

the

Fund

as

an

unrealized

gain

or

loss.

When

the

contract

is

closed,

the

Fund

records

a

realized

gain

or

loss

equal

to

the

difference

between

the

value

of

the

contract

at

the

time

it

was

opened

and

the

value

at

the

time

it

was

closed.

The

use

of

forward

foreign

currency

contracts

does

not

eliminate

the

fluctuations

in

underlying

prices

of

the

Fund's

portfolio

securities,

but

it

does

establish

a

rate

of

exchange

that

can

be

achieved

in

the

future.

Although

forward

foreign

currency

contracts

limit

the

risk

of

loss

due

to

a

decline

in

the

value

of

the

hedged

currency,

they

also

limit

any

potential

gain

that

might

result

should

the

value

of

the

currency

increase.

In

addition,

the

Fund

could

be

exposed

to

risks

if

the

counterparties

to

the

contracts

are

unable

to

meet

the

terms

of

their

contracts

or

if

the

value

of

the

currency

changes

unfavorably

to

the

U.S.

dollar

or

other

respective

currency. 

Illiquid

Securities.

Illiquid

securities

generally

cannot

be

sold

or

disposed

of

in

the

ordinary

course

of

business

(within

seven

calendar

days)

at

approximately

the

value

at

which

the

Fund

has

valued

the

investments.

This

may

have

an

adverse

effect

on

the

Fund’s

ability

to

dispose

of

particular

illiquid

securities

at

fair

value

and

may

limit

the

Fund’s

ability

to

obtain

accurate

market

quotations

for

purposes

of

valuing

the

securities. 

Indemnification.

Under

the

Fund’s

by-laws,

present

and

past

officers,

trustees,

and

employees

are

indemnified

against

certain

liabilities

arising

out

of

the

performance

of

their

duties.

In

addition,

in

the

normal

course

of

business,

the

Fund

may

enter

into

a

variety

of

contracts

that

may

contain

representations

and

warranties

which

provide

general

indemnifications.

The

Fund’s

maximum

exposure

under

these

arrangements

is

unknown,

as

this

would

involve

future

claims

that

may

be

made

against

the

Fund.

Operating

Segments.

An

operating

segment

is

defined

in

ASC

Topic

280,

Segment

Reporting,

as

a

component

of

a

public

entity

that

engages

in

business

activities

from

which

it

may

recognize

revenues

and

incur

expenses,

has

operating

results

that

are

regularly

reviewed

by

the

public

entity’s

chief

operating

decision

maker

("CODM")

to

make

decisions

about

resources

to

be

allocated

to

the

segment

and

assess

its

performance,

and

has

discrete

financial

information

available. Committees

and

working

groups

within

Management

under

the

direction

of

the

President

act

as

the

Fund’s

CODM.

The

Fund

represents

a

single

operating

segment.

The

CODM

monitors

the

operating

results

of

the

Fund

as

a

whole

and

the

Fund’s

strategic

asset

allocation

to

ensure

compliance

with

the defined

investment

strategy

executed

by

the

Fund’s

portfolio

managers

as

a

team.

The

types

of

investments

from

which

the

Fund

generates

its

returns

are

reflected

on

the

schedule

of

investments.

The

financial

information

provided

to

and

reviewed

by

the

CODM

is

consistent

with

that

presented

in

the

statement

of

operations

and

financial

highlights.

The

measures

shown

within

these

statements

including

net

investment

income

(loss),

total

return,

and

ratio

of

expenses

to

average

net

assets

are

used

by

the

CODM

to

assess

the

segment’s

performance

versus

the

Fund’s

comparative

benchmark

and

investment

objectives,

and

to

make

resource

allocation

decisions

for

the

Fund’s

single

segment.

Segment

assets

are

reported

on

the

statement

of

assets

and

liabilities

as

total

assets.

Private

Investments

in

Public

Equity.

The

Fund

may

invest

in

private

investments

in

public

equity

(“PIPEs”)

which

are

issued

by

a

company

in

the

secondary

market

as

a

means

of

raising

capital.

In

connection

with

PIPEs,

the

Fund

may

enter

into

unfunded

commitments.

Commitments

may

be

subject

to

various

contingencies

and

are

recognized

as

a

financial

instrument

when

the

commitment

is

legally

binding.

These

contingencies

are

considered

in

the

valuation

of

the

commitments.

The

Fund

is

obligated

to

fund

these

commitments

when

the

contingencies

are

met

and

therefore,

the

Fund

must

have

funds

sufficient

to

cover

its

obligation.

Commitments

are

marked

to

market

daily

and

the

unrealized

gain

or

loss

is

shown

as

a

separate

line

item

called

unrealized

gain

or

loss

on

unfunded

commitments

on

the

statement

of

assets

and

liabilities

and

included

in

the

net

change

in

unrealized

appreciation/(depreciation)

of

investments

on

the

statement

of

operations,

as

applicable.

Commitments

are

typically

categorized

as

Level

2

within

the

disclosure

hierarchy.

As

of

March

31,

2025

,

the

Fund

had

no

unfunded

commitments

in

connection

with

PIPEs.

Private

and

Other

Underlying

Funds.

The

Fund

may

invest

in

private

investment

funds

and

other

publicly

traded

investment

funds.

The

shares

of

publicly

traded

investment

funds

and

private

investment

funds

are

collectively

referred

to

as

the

“Underlying

Funds”.

The

Fund

may

indirectly

bear

a

pro

rata

share

of

the

fees

and

expenses

of

the

Underlying

Funds

in

which

it

invests.

Because

the

Underlying

Funds

have

varied

expense

levels

and

the

Fund

may

own

different

proportions

of

Underlying

Funds

at

different

times,

the

amount

of

expense

incurred

indirectly

by

the

Fund

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Real

Asset

Fund

March

31,

2025

13

will

vary.

Expenses

included

in

the

statement

of

operations

and

financial

highlights

of

the

Fund

do

not

include

any

expenses

associated

with

the

Underlying

Funds.

Private

investment

funds

are

not

registered

as

investment

companies

under

the

1940

Act

and

therefore

the

Fund

will

not

be

able

to

avail

itself

of

the

protection

of

the

1940

Act

with

respect

to

such

private

investment

funds,

including

certain

corporate

governance

protections,

such

as

the

requirement

of

having

a

majority

or

50%

of

the

directors

serving

on

a

board

as

independent

directors,

statutory

protections

against

self-

dealings

by

the

institutional

asset

managers,

and

leverage

limitations.

Due

to

the

inherent

uncertainty

and

subjectivity

of

determining

the

value

of

investments

in

private

investment

funds,

upon

disposition

the

amounts

realized

may

differ

significantly

had

readily

available

market

values

existed

on

such

investments.

The

Fund

will

hold

liquid

assets

while

it

waits

for

such

Underlying

Funds

to

call

capital,

which

may

negatively

impact

its

performance.

Rebates.

Subject

to

best

execution,

the

Fund

may

direct

certain

portfolio

transactions

to

brokerage

firms

that,

in

turn,

have

agreed

to

rebate

a

portion

of

the

related

brokerage

commission

to

the

Fund

in

cash.

Commission

rebates

are

included

as

a

component

of

realized

gain

from

investment

transactions

in

the

statement

of

operations. 

Restricted

Securities.

The

Fund

may

invest

in

securities

that

are

subject

to

legal

or

contractual

restrictions

on

resale.

These

securities

generally

may

be

resold

in

transactions

exempt

from

registration

or

to

the

public

if

the

securities

are

registered.

Disposal

of

these

securities

may

involve

time-consuming

negotiations

and

expense,

and

prompt

sale

at

an

acceptable

price

may

be

difficult. 

Senior

Floating

Rate

Interests.

The

Fund

may

invest

in

senior

floating

rate

interests

(bank

loans).

Senior

floating

rate

interests

typically

hold

the

most

senior

position

in

the

capital

structure

of

a

business

entity

(the

“Borrower”),

and

are

secured

by

specific

collateral

and

have

a

claim

on

the

assets

and/or

stock

of

the

Borrower

that

is

senior

to

that

held

by

subordinated

debtholders

and

stockholders

of

the

Borrower.

Senior

floating

rate

interests

are

typically

structured

and

administered

by

a

financial

institution

that

acts

as

the

agent

of

the

lenders

participating

in

the

senior

floating

rate

interest.

Borrowers

of

senior

floating

rate

interests

are

typically

rated

below-investment-grade,

which

means

they

are

more

likely

to

default

than

investment-grade

loans.

A

default

could

lead

to

non-payment

of

income

which

would

result

in

a

reduction

of

income

to

the

Fund

and

there

can

be

no

assurance

that

the

liquidation

of

any

collateral

would

satisfy

the

Borrower’s

obligation

in

the

event

of

non-payment

of

scheduled

interest

or

principal

payments,

or

that

such

collateral

could

be

readily

liquidated.

Senior

floating

rate

interests

pay

interest

at

rates

which

are

periodically

reset

by

reference

to

a

base

lending

rate

plus

a

spread.

These

base

lending

rates

are

generally

the

prime

rate

offered

by

a

designated

U.S.

bank,

Secured

Overnight

Financing

Rate

(“SOFR”),

or

a

similar

reference

rate.

Senior

floating

rate

interests

generally

are

subject

to

mandatory

and/or

optional

prepayment.

Because

of

these

mandatory

prepayment

conditions

and

because

there

may

be

significant

economic

incentives

for

the

Borrower

to

repay,

prepayments

of

senior

floating

rate

interests

may

occur.

As

a

result,

the

actual

remaining

maturity

of

senior

floating

rate

interests

may

be

substantially

less

than

stated

maturities

shown

in

the

schedule

of

investments.

Unfunded

Commitments.

In

connection

with

the

senior

floating

rate

interests,

the

Fund

may

enter

into

unfunded

loan

commitments

(“commitments”).

All

or

a

portion

of

the

commitments

may

be

unfunded.

The

Fund

is

obligated

to

fund

these

commitments

at

the

Borrower’s

discretion.

Therefore,

the

Fund

must

have

funds

sufficient

to

cover

its

contractual

obligation.

Commitments

are

marked

to

market

daily

and

the

unrealized

gain

or

loss

is

shown

as

a

separate

line

item

called

unrealized

gain

or

loss

on

unfunded

commitments

on

the

statement

of

assets

and

liabilities

and

included

in

the

net

change

in

unrealized

appreciation/(depreciation)

of

investments

on

the

statement

of

operations,

as

applicable.

As

of

March

31,

2025,

the

Fund

had

no

unfunded

commitments

relating

to

senior

floating

rate

interests.

The

Fund

may

also

enter

into

unfunded

commitments

relating

to

potential

future

investments

in

private

investment

funds,

which

are

not

marked

to

market

daily.

These

unfunded

commitments

are

typically

made

for

a

specified

amount

of

capital

and

may

be

called

at

the

discretion

of

the

general

partner

of

the

private

investment

fund

pursuant

to

its

limited

partnership

agreement.

As

of

March

31,

2025,

the

Fund

had

unfunded

commitments

relating

to

potential

future

investments,

as

follows

(amounts

in

thousands):

*Unfunded

commitments

approximate

their

fair

values.

Private

Investment

Fund

Unfunded

Commitment*

ACIP

Parallel

Fund

A,

LP

$

314

Macquarie

Green

Energy

and

Climate

Opportunities

Fund,

SCSp

1,050

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Real

Asset

Fund

March

31,

2025

14

4.

Fair

Valuation

Fair

value

is

defined

as

the

price

that

the

Fund

would

receive

upon

selling

a

security

or

transferring

a

liability

in

a

timely

transaction

to

an

independent

buyer

in

the

principal

or

most

advantageous

market

of

the

security

at

the

measurement

date.

In

determining

fair

value,

the

Fund

may

use

one

or

more

of

the

following

approaches:

market,

income,

and/or

cost.

A

hierarchy

for

inputs

is

used

in

measuring

fair

value

that

maximizes

the

use

of

observable

inputs

and

minimizes

the

use

of

unobservable

inputs

by

requiring

that

the

most

observable

inputs

be

used

when

available.

Observable

inputs

are

inputs

that

reflect

the

assumptions

market

participants

would

use

in

pricing

the

asset

or

liability

developed

based

on

market

data

obtained

from

sources

independent

of

the

Fund.

Unobservable

inputs

are

inputs

that

reflect

the

Fund’s

own

estimates

about

the

estimates

market

participants

would

use

in

pricing

the

asset

or

liability

developed

based

on

the

best

information

available

in

the

circumstances.

The

three-tier

hierarchy

of

inputs

is

summarized

in

the

three

broad

levels

listed

below.

Level

1

–

Quoted

prices

are

available

in

active

markets

for

identical

securities

as

of

the

reporting

date.

Investments

which

are

generally

included

in

this

category

include

listed

equities

and

exchange-traded

derivatives.

Level

2

–

Other

significant

observable

inputs

(including

quoted

prices

for

similar

investments,

interest

rates,

prepayment

speeds,

credit

risk,

etc.).

Investments

which

are

generally

included

in

this

category

include

certain

foreign

equities,

corporate

bonds,

municipal

bonds,

OTC

derivatives,

exchange

cleared

derivatives,

senior

floating

rate

interests,

repurchase

agreements,

and

U.S.

Government

and

Government

Agency

Obligations.

Level

3

–

Significant

unobservable

inputs

(including

the

Fund’s

assumptions

in

determining

the

fair

value

of

investments).

Investments

which

are

generally

included

in

this

category

include

certain

common

stocks,

convertible

preferred

stocks,

corporate

bonds,

preferred

stocks,

or

senior

floating

rate

interests.

In

accordance

with

Accounting

Standards

Codification

820

–

Fair

Value

Measurement

,

the

Fund

has

elected

to

apply

the

practical

expedient

to

value

its

investments

in

private

investment

funds

at

their

respective

net

asset

value

each

calendar

month

or

quarter.

Private

investment

funds

valued

at

net

asset

value

are

excluded

from

the

fair

value

hierarchy.

The

availability

of

observable

inputs

can

vary

from

security

to

security

and

is

affected

by

a

wide

variety

of

factors,

including,

for

example,

the

type

of

security,

whether

the

security

is

new

and

not

yet

established

in

the

market

place,

and

other

characteristics

particular

to

the

transaction.

To

the

extent

that

valuation

is

based

on

models

or

inputs

that

are

less

observable

or

unobservable

in

the

market,

the

determination

of

fair

value

requires

more

judgment.

Accordingly,

the

degree

of

judgment

exercised

by

the

Fund

in

determining

fair

value

is

greatest

for

instruments

categorized

in

Level

3.

In

certain

cases,

the

inputs

used

to

measure

fair

value

may

fall

into

different

levels

of

the

fair

value

hierarchy.

In

such

cases,

for

disclosure

purposes,

the

level

in

the

fair

value

hierarchy

within

which

the

fair

value

measurement

in

its

entirety

falls

is

determined

based

on

the

lowest

level

input

that

is

significant

to

the

fair

value

measurement

in

its

entirety.

Fair

value

is

a

market-based

measure

considered

from

the

perspective

of

a

market

participant

who

holds

the

asset

rather

than

an

entity

specific

measure.

Therefore,

even

when

market

assumptions

are

not

readily

available,

the

Fund’s

own

assumptions

are

set

to

reflect

those

that

market

participants

would

use

in

pricing

the

asset

or

liability

at

the

measurement

date.

The

Fund

uses

prices

and

inputs

that

are

current

as

of

the

measurement

date,

when

available.

Investments

which

are

included

in

the

Level

3

category

may

be

valued

using

quoted

prices

from

brokers

and

dealers

participating

in

the

market

for

these

investments.

These

investments

are

classified

as

Level

3

investments

due

to

the

lack

of

market

transparency

and

market

corroboration

to

support

these

quoted

prices.

Valuation

models

may

be

used

as

the

pricing

source

for

other

investments

classified

as

Level

3.

Valuation

models

rely

on

one

or

more

significant

unobservable

inputs

such

as:

yield

to

maturity,

EBITDA

multiples,

discount

rates,

available

cash,

or

direct

offering

price.

Significant

increases

in

yield

to

maturity,

EBITDA

multiples,

available

cash,

or

direct

offering

price

would

have

resulted

in

significantly

higher

fair

value

measurements.

A

significant

increase

in

discount

rates

would

have

resulted

in

a

significantly

lower

fair

value

measurement.

Benchmark

pricing

procedures

set

the

base

price

of

a

security

based

on

current

market

data.

The

base

price

may

be

a

broker-dealer

quote,

transaction

price,

or

internal

value

based

on

relevant

market

data.

The

fair

values

of

these

securities

are

dependent

on

economic,

political,

and

other

considerations.

The

values

of

such

securities

may

be

affected

by

significant

changes

in

the

economic

conditions,

changes

in

government

policies,

and

other

factors

(e.g.,

natural

disasters,

pandemics,

accidents,

conflicts,

etc.).

The

inputs

or

methodology

used

for

valuing

securities

are

not

necessarily

an

indication

of

the

risk

associated

with

investing

in

those

instruments.

Notes

to

Financial

Statements

Principal

Real

Asset

Fund

March

31,

2025

15

The

following

is

a

summary

of

the

inputs

used

as

of

March

31,

2025

in

valuing

the

Fund’s

securities

carried

at

fair

value

(amounts

in

thousands):

*For

additional

detail

regarding

sector

and/or

sub-industry

classifications,

please

see

the

schedule

of

investments.

5.

Management

Agreement

and

Transactions

with

Affiliates

Management

Services.

The

Fund

has

agreed

to

pay

management

and

investment

advisory

fees

to

the

Manager

computed

at

an

annual

percentage

rate

of

the

Fund’s

average

daily

net

assets.

A

portion

of

the

management

fee

is

paid

by

the

Manager

to

the

sub-advisors

of

the

Fund,

which

may

be

affiliates

of

the

Manager.

The

annual

rate

paid

by

the

Fund

is

based

upon

the

aggregate

average

daily

net

assets

(“aggregate

net

assets”)

of

the

Fund.

The

management

and

investment

advisory

fees

schedule

for

the

Fund

is

1.70%

of

aggregate

net

assets

up

to

$1.5

billion

and

1.65%

of

aggregate

net

assets

over

$1.5

billion.

The

Manager

has

contractually

agreed

to

waive

0.82%

of

the

Fund’s

management

and

investment

advisory

fees.

It

is

expected

that

the

fee

waiver

will

continue

through

the

period

ending

July

31,

2025;

however,

the

Fund

and

the

Manager,

the

parties

to

the

agreement,

may

mutually

agree

to

terminate

the

fee

waiver

prior

to

the

end

of

the

period.

The

Manager

has

contractually

agreed

to

limit

the

Fund’s

expenses

(excluding

interest

expense,

expenses

related

to

fund

investments,

acquired

fund

fees

and

expenses,

and

tax

reclaim

recovery

expenses

and

other

extraordinary

expenses).

The

reductions

and

reimbursements

are

in

amounts

that

maintain

total

operating

expenses

at

or

below

certain

limits.

The

limits

are

expressed

as

a

percentage

of

average

daily

net

assets

attributable

to

each

class

of

shares

on

an

annualized

basis

during

the

reporting

period.

The

expenses

borne

by

the

Manager

are

subject

to

reimbursement

by

the

Fund

through

the

fiscal

year

end,

provided

no

reimbursement

will

be

made

if

it

would

result

in

the

Fund

exceeding

the

total

operating

expense

limits.

Any

amounts

outstanding

at

the

end

of

the

year

are

shown

as

an

expense

reimbursement

from

Manager

or

expense

reimbursement

to

Manager

on

the

statement

of

assets

and

liabilities

and

are

settled

monthly.

It

is

expected

that

the

operating

expense

limits

will

continue

through

the

period

ending

July

31,

2025,

the

contractual

expiration

date;

however,

the

Fund

and

the

Manager,

the

parties

to

the

agreement,

may

mutually

agree

to

terminate

the

operating

expense

limits

prior

to

the

end

of

the

period.

The

operating

expense

limits

are

as

follows:

Distribution

Fees.

The

Class

A

shares

of

the

Fund

bear

distribution

fees.

The

fees

are

computed

at

an

annual

rate

of

0.25%

of

the

average

daily

net

assets

attributable

to

Class

A

shares

of

the

Fund.

Distribution

fees

are

paid

to

the

Distributor

of

the

Fund.

A

portion

of

the

distribution

fees

may

be

paid

to

other

selling

dealers

for

providing

certain

services.

Fund

Level

1

-

Quoted

Prices

Level

2

-

Other

Significant

Observable

Inputs

Level

3

-

Significant

Unobservable

Inputs

Totals

(Level

1,2,3)

Principal

Real

Asset

Fund

Common

Stocks

Basic

Materials

$

1,709

$

1,330

$

—

$

3,039

Communications

—

211

—

211

Consumer,

Cyclical

35

—

—

35

Consumer,

Non-cyclical

650

455

—

1,105

Energy

2,626

1,409

—

4,035

Financial

6,047

2,126

—

8,173

Industrial

1,622

1,772

—

3,394

Utilities

5,663

2,164

—

7,827

Investment

Companies*

26,349

—

—

26,349

Total

$

44,701

$

9,467

$

—

$

54,168

Investments

Using

NAV

as

practical

expedient

Private

Investment

Funds

116,

879

Total

investments

in

securities

$

171,047

Share

Class

Operating

Expense

Limit

Expiration

Class

A

1.39%

July

31,

2025

Class

Y

0.89

July

31,

2025

Institutional

1.09

July

31,

2025

4.

Fair

Valuation

(continued)

Notes

to

Financial

Statements

Principal

Real

Asset

Fund

March

31,

2025

16

Chief

Compliance

Officer

Expenses.

The

Fund

pays

certain

expenses

associated

with

the

Chief

Compliance

Officer

(“CCO”).

This

expense

is

allocated

among

the

registered

investment

companies

managed

by

the

Manager

based

on

the

relative

net

assets

of

each

fund

and

is

shown

on

the

statement

of

operations.

Sales

Charges.

The

Distributor

retains

sales

charges

on

certain

sales

of

Class

A

shares

based

on

declining

rates

which

begin

at

5.75%.

For

the

year

ended

March

31,

2025,

there

were

no

sales

charges

retained

by

the

Distributor.

Affiliated

Ownership

.

As

of

March

31,

2025,

Principal

Financial

Services

Inc.

and

Principal

Life

Insurance

Company

(each

an

affiliate

of

the

Manager)

owned

shares

of

the

Fund

as

follows

(amounts

of

shares

in

thousands):

6.

Investment

Transactions

For

the

year

ended

March

31,

2025,

the

cost

of

investment

securities

purchased

and

proceeds

from

investment

securities

sold

(not

including

short-

term

investments,

return

of

capital,

and

mergers)

by

the

Fund

were

as

follows

(amounts

in

thousands):

7.

Repurchase

Offers

The

Fund

has

a

fundamental

policy

to

make

quarterly

repurchase

offers

for

no

less

than

5%

and

not

more

than

25%

of

its

shares

at

a

price

equal

to

net

asset

value

per

share,

unless

suspended

or

postponed

in

accordance

with

regulatory

requirements,

and

that

each

quarterly

repurchase

pricing

share

occur

on

the

Repurchase

Pricing

Date,

the

date

that

will

be

used

to

determine

the

Fund’s

net

asset

value

per

share

applicable

to

the

repurchase.

The

Fund

will

make

quarterly

repurchase

offers

every

three

months,

in

the

following

months:

March,

June,

September,

and

December.

The

Fund

will

repurchase

shares

that

are

tendered

by

a

specific

date

(the

“Repurchase

Request

Deadline”),

which

will

be

established

by

the

Board

in

accordance

with

Rule

23c-3,

as

amended

from

time

to

time.

Rule

23c-3

requires

the

Repurchase

Request

Deadline

to

be

no

less

than

21

and

no

more

than

42

days

after

the

Fund

sends

notification

to

shareholders

of

the

repurchase

offer.

There

will

be

a

maximum

14

calendar

day

period,

or

the

next

business

day

if

the

14th

calendar

day

is

not

a

business

day,

between

the

Repurchase

Request

Deadline

and

the

Repurchase

Pricing

Date.

If

a

repurchase

offer

by

the

Fund

is

oversubscribed,

the

Fund

may

repurchase,

but

is

not

required

to

repurchase,

additional

shares

up

to

a

maximum

amount

of

2%

of

the

outstanding

shares

of

the

Fund.

If

the

Fund

determines

not

to

repurchase

additional

shares

beyond

the

repurchase

offer

amount,

or

if

shareholders

tender

an

amount

of

shares

greater

than

that

which

the

Fund

is

entitled

to

repurchase,

the

Fund

will

repurchase

the

shares

tendered

on

a

pro

rata

basis.

For

the

year

ended

March

31,

2025,

shares

of

the

Fund

were

repurchased

during

the

repurchase

offer

windows

as

per

the

table

below

(amounts

in

thousands).

In

these

offers,

the

Fund

offered

to

repurchase

up

to

5%

of

the

number

of

outstanding

shares

as

of

the

Repurchase

Pricing

Date.

Class

A

Class

Y

Institutional

Principal

Real

Asset

Fund

12

6,163

13

Purchases

Sales

Principal

Real

Asset

Fund

$

60,439

$

46,579

Repurchase

Offer

#1

Repurchase

Offer

#2

Repurchase

Offer

#3

Repurchase

Offer

#4

Commencement

Date

March

26,

2024

June

25,

2024

September

24,

2024

December

24,

2024

Repurchase

Request

Deadline

April

25,

2024

July

25,

2024

October

24,

2024

January

23,

2025

Repurchase

Pricing

Date

April

25,

2024

July

25,

2024

October

24,

2024

January

23,

2025

Amount

Repurchased

$

7,126

$

8,783

$7,005

$9,211

Shares

Repurchased

283

342

266

352

Percentage

of

Outstanding

Shares

Repurchased

4.96%

6.05%

4.44%

5.87%

5.

Management

Agreement

and

Transactions

with

Affiliates

(continued)

Notes

to

Financial

Statements

Principal

Real

Asset

Fund

March

31,

2025

17

8.

Federal

Tax

Information

Distributions

to

Shareholders.

The

federal

income

tax

character

of

distributions

paid

for

the

year

ended

March

31,

2025

and

year

ended

March

31,

2024,

were

as

follows

(amounts

in

thousands):

*The

Fund

designates

these

distributions

as

long-term

capital

gain

dividends

per

IRC

Sec.

852

(b)(3)(C)

in

the

20-percent

group

(which

may

be

taxed

at

a

20-percent

rate,

a

15-percent

rate,

or

a

0-percent

rate,

depending

on

the

shareholder’s

taxable

income).

For

U.S.

federal

income

tax

purposes,

short-term

capital

gain

distributions

are

considered

ordinary

income

distributions.

Distributable

Earnings.

As

of

March

31,

2025,

the

components

of

distributable

earnings

(accumulated

loss)

on

a

federal

tax

basis

were

as

follows

(amounts

in

thousands):

Capital

Loss

Carryforwards.

For

federal

income

tax

purposes,

capital

loss

carryforwards

are

losses

that

can

be

used

to

offset

future

capital

gains

of

the

Fund.

As

of

March

31,

2025

,

the

Fund

had

no

capital

loss

carryforwards.

For

the

year

ended

March

31,

2025

,

the

Fund

did

not

utilize

capital

loss

carryforwards.

Late-Year

Losses.

A

regulated

investment

company

may

elect

to

treat

any

portion

of

its

qualified

late-year

loss

as

arising

on

the

first

day

of

the

next

taxable

year.

Qualified

late-year

losses

are

certain

capital

and

ordinary

losses

which

occur

during

the

portion

of

the

Fund’s

taxable

year

subsequent

to

October

31

and

December

31,

respectively.

As

of

March

31,

2025

,

the

Fund

does

not

plan

to

defer

any

late-year

losses.

Reclassification

of

Capital

Accounts.

The

Fund

may

record

reclassifications

in

its

capital

accounts.

These

reclassifications

have

no

impact

on

the

total

net

assets

of

the

Fund.

The

reclassifications

are

a

result

of

permanent

differences

between

U.S.

GAAP

and

tax

accounting.

Adjustments

are

made

to

reflect

the

impact

these

items

have

on

current

and

future

distributions

to

shareholders.

Therefore,

the

source

of

the

Fund’s

distributions

may

be

shown

in

the

accompanying

statement

of

changes

in

net

assets

as

from

net

investment

income

and

net

realized

gain

on

investments

or

from

tax

return

of

capital

depending

on

the

type

of

book

and

tax

differences

that

exist.

For

the

year

ended

March

31,

2025,

the

Fund

recorded

reclassifications

as

follows

(amounts

in

thousands):

Federal

Income

Tax

Basis.

As

of

March

31,

2025

,

the

net

federal

income

tax

unrealized

appreciation

(depreciation)

and

federal

tax

cost

of

investments

held

by

the

Fund

were

as

follows

(amounts

in

thousands):

9.

Subsequent

Events

Management

has

evaluated

events

and

transactions

that

have

occurred

through

the

date

the

financial

statements

were

issued

that

would

merit

recognition

or

disclosure

in

the

financial

statements.

The

Fund

completed

a

quarterly

repurchase

offer

on

April

28,

2025

which

resulted

in

368,916

shares

being

repurchased

for

$9,733,000.

There

were

no

additional

items

requiring

adjustment

of

the

financial

statements

or

additional

disclosure.

Ordinary

Income

Long-Term

Capital

Gain*

2025

2024

2025

2024

Principal

Real

Asset

Fund

$

2,332

$

1,914

$

184

$

1,212

Undistributed

Ordinary

Income

Undistributed

Long-Term

Capital

Gains

Accumulated

Losses

Net

Unrealized

Appreciation

(Depreciation)

Other

Temporary

Differences

Total

Accumulated

Earnings

(Deficit)

Principal

Real

Asset

Fund

$

1,016

$

487

$

—

$

10,

521

$

—

$

12,024

Total

Distributable

Earnings

(Accumulated

Loss)

Capital

Shares

and

Additional

Paid-in-Capital

Principal

Real

Asset

Fund

$

11

$

(11)

Unrealized

Appreciation

Unrealized

(Depreciation)

Net

Unrealized

Appreciation/

(Depreciation)

Cost

for

Federal

Income

Tax

Purposes

Principal

Real

Asset

Fund

$

19,308

$

(8,787)

$

10,521

$

160,526

Schedule

of

Investments

Principal

Real

Asset

Fund

March

31,

2025

See

accompanying

notes.

18

INVESTMENT

COMPANIES

-

16

.03

%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

8

.93

%

Global

X

US

Infrastructure

Development

ETF

69,300‌

$

2,614‌

iShares

Global

Infrastructure

ETF

104,300‌

5,702‌

iShares

U.S.

Infrastructure

ETF

141,375‌

6,372‌

$

14,688‌

Money

Market

Funds

-

7

.10

%

Morgan

Stanley

Institutional

Liquidity

Funds

-

Government

Portfolio

-

Institutional

Class

4.27%

(a)

11,659,891‌

11,660‌

TOTAL

INVESTMENT

COMPANIES

$

26,348‌

PRIVATE

INVESTMENT

FUNDS

-

71

.12

%

Shares

Held

Value

(000's)

Agriculture

-

18

.84

%

Ceres

Farmland

Holdings,

LP

(b)

N/A

$

11,820‌

Hancock

Timberland

and

Farmland

Fund,

LP

(b)

N/A

13,283‌

UBS

AgriVest

Farmland

Fund

(b)

N/A

5,854‌

$

30,957‌

Energy

-

Alternate

Sources

-

23

.29

%

ACIP

Parallel

Fund

A,

LP

(b)

N/A

5,046‌

Blackstone

Infrastructure

Partners

F2,

LP

(b)

N/A

6,506‌

Brookfield

Super-Core

Infrastructure

Partners

Fund,

LP

(b)

N/A

4,000‌

CBRE

Caledon

Global

Infrastructure

Fund

(International),

LP

(b)

N/A

10,910‌

IFM

Net

Zero

Infrastructure

Fund

(USD)

B,

SCSp

(b),(c)

N/A

6,122‌

Macquarie

Green

Energy

and

Climate

Opportunities

Fund,

SCSp

(b)

N/A

5,696‌

$

38,280‌

Forest

Products

&

Paper

-

3

.57

%

BTG

Pactual

Open

Ended

Core

US

Timberland

Fund,

LP

(b),(c)

N/A

5,864‌

Private

Equity

-

10

.21

%

GDIF

US

Hedged

Feeder

Fund,

LP

(b)

N/A

6,866‌

HarbourVest

Infrastructure

Income

Delaware

Parallel

Partnership,

LP

(b)

N/A

9,920‌

$

16,786‌

Real

Estate

-

11

.61

%

Brookfield

Senior

Mezzanine

Real

Estate

Finance

Fund,

LP

(b)

N/A

2,868‌

FDR

PELF

SCA,

SICAV-RAIF

(b)

N/A

5,682‌

PGIM

Real

Estate

US

Debt

Fund,

LP

(b)

N/A

5,057‌

UBS

Trumbull

Property

Growth

&

Income

Fund

(b)

N/A

5,470‌

$

19,077‌

Transportation

-

3

.60

%

Global

Transport

Income

Fund

Feeder

LLC,

LP

(b)

N/A

5,915‌

TOTAL

PRIVATE

INVESTMENT

FUNDS

$

116,879‌

COMMON

STOCKS

-

16

.93

%

Shares

Held

Value

(000's)

Agriculture

-

0

.13

%

Archer-Daniels-Midland

Co

1,564‌

$

75‌

Bunge

Global

SA

453‌

35‌

Darling

Ingredients

Inc

(c)

514‌

16‌

Wilmar

International

Ltd

34,700‌

86‌

$

212‌

Biotechnology

-

0

.09

%

Corteva

Inc

2,253‌

142‌

Building

Materials

-

0

.11

%

Louisiana-Pacific

Corp

202‌

18‌

Svenska

Cellulosa

AB

SCA

7,823‌

103‌

West

Fraser

Timber

Co

Ltd

764‌

59‌

$

180‌

Chemicals

-

0

.31

%

CF

Industries

Holdings

Inc

567‌

44‌

FMC

Corp

404‌

17‌

ICL

Group

Ltd

9,470‌

54‌

Mosaic

Co/The

1,029‌

28‌

Nutrien

Ltd

6,183‌

307‌

Yara

International

ASA

2,162‌

65‌

$

515‌

Coal

-

0

.03

%

Teck

Resources

Ltd

1,269‌

46‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Commercial

Services

-

0

.41

%

Atlas

Arteria

Ltd

121,271‌

$

369‌

CCR

SA

149,492‌

306‌

$

675‌

Consumer

Products

-

0

.03

%

Avery

Dennison

Corp

263‌

47‌

Electric

-

4

.01

%

CenterPoint

Energy

Inc

16,266‌

589‌

CLP

Holdings

Ltd

22,500‌

183‌

CMS

Energy

Corp

7,853‌

590‌

DTE

Energy

Co

3,012‌

417‌

EDP

Renovaveis

SA

15,732‌

131‌

Elia

Group

SA/NV

3,229‌

280‌

Elia

Group

SA/NV

-

Rights

(c)

3,229‌

16‌

Emera

Inc

12,547‌

528‌

Entergy

Corp

7,247‌

620‌

National

Grid

PLC

48,018‌

626‌

NextEra

Energy

Inc

13,954‌

990‌

Northwestern

Energy

Group

Inc

6,706‌

388‌

PG&E

Corp

33,161‌

570‌

Xcel

Energy

Inc

9,277‌

657‌

$

6,585‌

Engineering

&

Construction

-

1

.08

%

Aeroports

de

Paris

SA

3,857‌

393‌

Beijing

Capital

International

Airport

Co

Ltd

(c)

566,000‌

205‌

Cellnex

Telecom

SA

-

Rights

(c),(d)

13,057‌

464‌

China

Tower

Corp

Ltd

(c),(d)

126,600‌

170‌

Enav

SpA

(d)

69,766‌

276‌

Grupo

Aeroportuario

del

Centro

Norte

SAB

de

CV

27,200‌

267‌

$

1,775‌

Food

-

0

.02

%

Ingredion

Inc

214‌

29‌

Forest

Products

&

Paper

-

0

.27

%

International

Paper

Co

1,723‌

92‌

Mondi

PLC

5,819‌

87‌

Suzano

SA

ADR

9,187‌

85‌

UPM-Kymmene

Oyj

7,053‌

189‌

$

453‌

Gas

-

0

.17

%

ENN

Energy

Holdings

Ltd

34,600‌

286‌

Housewares

-

0

.00

%

Scotts

Miracle-Gro

Co/The

137‌

7‌

Iron

&

Steel

-

0

.28

%

ArcelorMittal

SA

1,267‌

37‌

Fortescue

Ltd

4,747‌

46‌

Nippon

Steel

Corp

3,000‌

64‌

Novolipetsk

Steel

PJSC

36,800‌

—‌

Nucor

Corp

659‌

79‌

POSCO

Holdings

Inc

209‌

40‌

Reliance

Inc

152‌

44‌

Severstal

PAO

(c)

4,878‌

—‌

Steel

Dynamics

Inc

397‌

50‌

Vale

SA

ADR

10,136‌

101‌

$

461‌

Lodging

-

0

.02

%

Travel

+

Leisure

Co

600‌

28‌

Mining

-

0

.98

%

Agnico

Eagle

Mines

Ltd

1,413‌

153‌

Anglo

American

PLC

3,772‌

106‌

Antofagasta

PLC

968‌

21‌

Barrick

Gold

Corp

4,942‌

96‌

BHP

Group

Ltd

12,492‌

303‌

Boliden

AB

767‌

25‌

China

Hongqiao

Group

Ltd

6,500‌

13‌

First

Quantum

Minerals

Ltd

(c)

1,894‌

25‌

Franco-Nevada

Corp

540‌

85‌

Freeport-McMoRan

Inc

4,048‌

153‌

Glencore

PLC

(c)

27,869‌

102‌

Gold

Fields

Ltd

ADR

2,509‌

55‌

Schedule

of

Investments

Principal

Real

Asset

Fund

March

31,

2025

See

accompanying

notes.

19

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Mining

(continued)

Ivanhoe

Mines

Ltd

(c)

2,007‌

$

17‌

Newmont

Corp

3,208‌

155‌

Norsk

Hydro

ASA

3,711‌

21‌

Polyus

PJSC

(c)

407‌

—‌

Rio

Tinto

Ltd

1,050‌

76‌

South32

Ltd

12,674‌

26‌

Southern

Copper

Corp

247‌

23‌

Sumitomo

Metal

Mining

Co

Ltd

800‌

18‌

Wheaton

Precious

Metals

Corp

1,282‌

100‌

Zijin

Mining

Group

Co

Ltd

16,000‌

37‌

$

1,610‌

Oil

&

Gas

-

1

.31

%

BP

PLC

25,923‌

145‌

Canadian

Natural

Resources

Ltd

3,415‌

105‌

Cenovus

Energy

Inc

2,053‌

28‌

Chevron

Corp

1,057‌

177‌

ConocoPhillips

815‌

86‌

Coterra

Energy

Inc

457‌

13‌

Devon

Energy

Corp

422‌

16‌

Diamondback

Energy

Inc

116‌

19‌

Ecopetrol

SA

ADR

389‌

4‌

Eni

SpA

3,480‌

54‌

EOG

Resources

Inc

355‌

45‌

Equinor

ASA

1,256‌

33‌

Exxon

Mobil

Corp

2,771‌

330‌

Hess

Corp

175‌

28‌

Imperial

Oil

Ltd

266‌

19‌

Marathon

Petroleum

Corp

201‌

29‌

Neste

Oyj

680‌

6‌

Occidental

Petroleum

Corp

419‌

21‌

Petroleo

Brasileiro

SA

ADR

2,987‌

43‌

Phillips

66

262‌

32‌

Reliance

Industries

Ltd

(d)

2,783‌

163‌

Repsol

SA

1,890‌

25‌

Shell

PLC

9,610‌

350‌

Suncor

Energy

Inc

2,036‌

79‌

TotalEnergies

SE

3,595‌

232‌

Valero

Energy

Corp

201‌

27‌

Woodside

Energy

Group

Ltd

3,048‌

44‌

$

2,153‌

Oil

&

Gas

Services

-

0

.05

%

Baker

Hughes

Co

630‌

28‌

Halliburton

Co

546‌

14‌

Schlumberger

NV

895‌

37‌

$

79‌

Packaging

&

Containers

-

0

.23

%

Amcor

PLC

4,740‌

46‌

Graphic

Packaging

Holding

Co

971‌

25‌

Packaging

Corp

of

America

292‌

58‌

Sealed

Air

Corp

471‌

13‌

SIG

Group

AG

(c)

4,535‌

84‌

Smurfit

WestRock

PLC

1,614‌

73‌

Stora

Enso

Oyj

8,099‌

77‌

$

376‌

Pipelines

-

1

.07

%

APA

Group

72,128‌

357‌

DT

Midstream

Inc

2,061‌

199‌

Gibson

Energy

Inc

26,700‌

414‌

Williams

Cos

Inc/The

13,170‌

787‌

$

1,757‌

Real

Estate

-

0

.40

%

Fastighets

AB

Balder

(c)

6,700‌

42‌

Mitsui

Fudosan

Co

Ltd

34,500‌

309‌

Qualitas

Ltd

12,887‌

19‌

Sun

Hung

Kai

Properties

Ltd

11,500‌

110‌

Vonovia

SE

6,436‌

173‌

$

653‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

REITs

-

4

.57

%

Agree

Realty

Corp

2,100‌

$

162‌

American

Healthcare

REIT

Inc

6,999‌

212‌

American

Homes

4

Rent

6,188‌

234‌

American

Tower

Corp

4,535‌

987‌

Americold

Realty

Trust

Inc

3,300‌

71‌

AvalonBay

Communities

Inc

1,200‌

258‌

Boardwalk

Real

Estate

Investment

Trust

800‌

37‌

CapitaLand

Integrated

Commercial

Trust

67,795‌

105‌

COPT

Defense

Properties

2,200‌

60‌

Cousins

Properties

Inc

3,395‌

100‌

Crown

Castle

Inc

5,333‌

556‌

Digital

Realty

Trust

Inc

823‌

118‌

Equinix

Inc

471‌

384‌

Equity

LifeStyle

Properties

Inc

1,000‌

67‌

Equity

Residential

2,000‌

143‌

Essex

Property

Trust

Inc

400‌

123‌

Extra

Space

Storage

Inc

1,605‌

238‌

Gaming

and

Leisure

Properties

Inc

1,915‌

97‌

Goodman

Group

13,127‌

236‌

Host

Hotels

&

Resorts

Inc

4,800‌

68‌

InvenTrust

Properties

Corp

2,454‌

72‌

Japan

Hotel

REIT

Investment

Corp

62‌

30‌

Klepierre

SA

5,870‌

197‌

Link

REIT

24,624‌

115‌

Mapletree

Industrial

Trust

45,700‌

71‌

Merlin

Properties

Socimi

SA

5,916‌

63‌

Nippon

Accommodations

Fund

Inc

70‌

51‌

Nippon

Building

Fund

Inc

100‌

85‌

Nippon

Prologis

REIT

Inc

26‌

40‌

Prologis

Inc

2,821‌

315‌

Prologis

Property

Mexico

SA

de

CV

9,900‌

32‌

Regency

Centers

Corp

1,400‌

103‌

Rexford

Industrial

Realty

Inc

1,492‌

58‌

Ryman

Hospitality

Properties

Inc

500‌

46‌

Sabra

Health

Care

REIT

Inc

4,405‌

77‌

Safestore

Holdings

PLC

6,273‌

50‌

Segro

PLC

7,557‌

68‌

Sekisui

House

Reit

Inc

91‌

48‌

Simon

Property

Group

Inc

550‌

91‌

Stockland

25,495‌

79‌

Sunstone

Hotel

Investors

Inc

6,800‌

64‌

Unibail-Rodamco-Westfield

1,200‌

101‌

UNITE

Group

PLC/The

12,712‌

134‌

Ventas

Inc

4,183‌

288‌

VICI

Properties

Inc

7,775‌

254‌

Vornado

Realty

Trust

2,382‌

88‌

Welltower

Inc

3,747‌

574‌

Weyerhaeuser

Co

2,377‌

70‌

$

7,520‌

Telecommunications

-

0

.13

%

Indus

Towers

Ltd

(c)

38,963‌

152‌

NEXTDC

Ltd

(c)

8,300‌

59‌

$

211‌

Transportation

-

0

.65

%

Canadian

National

Railway

Co

6,300‌

613‌

Union

Pacific

Corp

1,907‌

450‌

$

1,063‌

Water

-

0

.58

%

Cia

de

Saneamento

Basico

do

Estado

de

Sao

Paulo

SABESP

17,600‌

315‌

Guangdong

Investment

Ltd

308,513‌

227‌

Severn

Trent

PLC

12,667‌

415‌

$

957‌

TOTAL

COMMON

STOCKS

$

27,820‌

Total

Investments

$

171,047‌

Other

Assets

and

Liabilities

-  (4.08)%

(

6,710‌

)

TOTAL

NET

ASSETS

-

100.00%

$

164,337‌

Schedule

of

Investments

Principal

Real

Asset

Fund

March

31,

2025

See

accompanying

notes.

20

(a)

1-day

yield

shown

is

as

of

period

end.

(b)

Private

Investment

Funds

have

quarterly

or

annual

redemption

frequencies

and

are

considered

restricted

securities.

Please

see

Private

Investment

Funds

sub-

schedule

for

additional

information.

(c)

Non-income

producing

security

(d)

Security

exempt

from

registration

under

Rule

144A

of

the

Securities

Act

of

1933.

These

securities

may

be

resold

in

transactions

exempt

from

registration,

normally

to

qualified

institutional

buyers.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$1,073

or

0.65%

of

net

assets.

Portfolio

Summary

Sector

Percent

Financial

26

.79‌

%

Energy

25

.75‌

%

Consumer,

Non-cyclical

19

.52‌

%

Exchange-Traded

Funds

8

.93‌

%

Money

Market

Funds

7

.10‌

%

Industrial

5

.67‌

%

Utilities

4

.76‌

%

Materials

3

.57‌

%

Basic

Materials

1

.84‌

%

Communications

0

.13‌

%

Consumer,

Cyclical

0

.02‌

%

Other

Assets

and

Liabilities

(

4

.08‌

)

%

TOTAL

NET

ASSETS

100.00%

Private

Investment

Funds

Security

Name

Acquisition

Date

Cost

Value

Redemption

Notice

(days)

Percent

of

Net

Assets

ACIP

Parallel

Fund

A,

LP

(a)

11/15/2021

-

03/28/2025

$

6,304‌

$

5,046‌

N/A

3.07%

Blackstone

Infrastructure

Partners

F2,

LP

(b)

09/27/2024

6,000‌

6,506‌

90

3.96%

Brookfield

Senior

Mezzanine

Real

Estate

Finance

Fund,

LP

(c)

03/31/2022

5,000‌

2,868‌

N/A

1.74%

Brookfield

Super-Core

Infrastructure

Partners

Fund,

LP

(d)

07/01/2021

-

06/27/2022

3,531‌

4,000‌

N/A

2.43%

BTG

Pactual

Open

Ended

Core

US

Timberland

Fund,

LP

(e)

07/01/2019

-

12/30/2021

4,697‌

5,864‌

90

3.57%

CBRE

Caledon

Global

Infrastructure

Fund

(International),

LP

(f)

07/16/2021

-

06/27/2024

10,958‌

10,910‌

N/A

6.64%

Ceres

Farmland

Holdings,

LP

(g)

11/06/2019,

02/05/2021

7,000‌

11,820‌

N/A

7.19%

FDR

PELF

SCA,

SICAV-RAIF

(h)

12/01/2022

6,610‌

5,682‌

90

3.46%

GDIF

US

Hedged

Feeder

Fund,

LP

(i)

04/23/2021

-

08/17/2022

6,115‌

6,866‌

N/A

4.18%

Global

Transport

Income

Fund

Feeder

LLC,

LP

(j)

08/01/2024

6,000‌

5,915‌

45

3.60%

Hancock

Timberland

and

Farmland

Fund,

LP

(k)

08/12/2020

-

04/20/2023

13,000‌

13,283‌

N/A

8.09%

HarbourVest

Infrastructure

Income

Delaware

Parallel

Partnership,

LP

(l)

06/27/2022

8,000‌

9,920‌

90

6.03%

IFM

Net

Zero

Infrastructure

Fund

(USD)

B,

SCSp

(m)

02/29/2024

6,000‌

6,122‌

90

3.72%

Macquarie

Green

Energy

and

Climate

Opportunities

Fund,

SCSp

(n)

08/30/2024

5,033‌

5,696‌

90

3.47%

PGIM

Real

Estate

US

Debt

Fund,

LP

(o)

04/30/2021,

06/30/2021

5,315‌

5,057‌

N/A

3.08%

UBS

AgriVest

Farmland

Fund

(p)

07/01/2020

-

01/03/2023

5,148‌

5,854‌

60

3.56%

UBS

Trumbull

Property

Growth

&

Income

Fund

(q)

07/01/2020

-

12/30/2021

6,633‌

5,470‌

60

3.33%

Total

$

116,879‌

71.12%

The

private

investment

funds

listed

in

the

table

do

not

include

any

unfunded

commitments.  Please

see

Note

3

for

details

of

any

unfunded

commitments.

Amounts

in

thousands.

(a)

This

closed-end

fund

focuses

on

the

Climate

Infrastructure

sector

which

includes

value-add

renewable

energy,

resource

and

energy

efficiency,

transmission

and

smart

grids,

vehicle

electrification,

and

energy

storage

and

microgrids.

The

fund

has

a

life

term

of

10

years

during

which,

redemptions

are

not

permitted.

(b)

This

fund

is

an

open-ended

investment

fund

whose

objective

is

to

identify,

acquire

and

operate

a

diversified

portfolio

of

high

quality,

long-duration,

cash-yielding

investments

that

can

compound

at

attractive

risk-adjusted

rates

of

return.  The

fund

seeks

to

invest

in

assets

across

four

primary

infrastructure

sectors:

energy

infrastructure,

transportation,

digital

infrastructure,

and

water

and

waste.  Redemptions

are

subject

to

a

three-year

lock

up

from

the

acquisition

date.

(c)

The

fund

was

established

as

an

open-end

senior

real

estate

debt

fund

focused

on

providing

primarily

floating

rate

financing

secured

by

commercial

property

primarily

located

in

the

U.S.

Management

of

the

fund

has

recently

announced

their

intention

to

dissolve

this

fund.

They

expect

to

return

50%

of

capital

by

the

end

of

2025

and

the

remaining

over

the

next

five

years.

(d)

This

open-end

fund

will

invest

in

high-quality,

core

infrastructure

assets

principally

throughout

North

America,

Europe

and

Australia

with

a

focus

on

current

yield,

diversification

and

inflation

protection.

Specifically,

the

fund

will

focus

on

regulated

or

contracted

assets

in

the

utilities,

energy,

power

and

transportation

sector

where

Brookfield

has

established

operating

expertise.

Of

those

sectors,

utilities

will

be

a

significant

focus

and

transportation

would

be

a

much

smaller

allocation

in

the

portfolio

given

its

more

cyclical

nature.

Redemptions

are

subject

to

a

three-year

holding

period

from

the

acquisition

date.

(e)

The

fund

was

established

to

invest

and

reinvest

assets

of

the

investors

through

the

REIT,

primarily

in

interests

(including

ownership

or

leasehold

interests)

in

real

property,

which

is

to

be

planted

with

trees,

or

real

property

on

which

trees

are

growing

(timberland),

trees

growing

on

timberland,

or

trees

which

have

been

cut

but

not

removed

from

the

timberland

(timber);

contracts

or

agreements

for

the

cutting

and/or

use

of

timber

on

timberland.

Timber

investments

are

not

intended

to

produce

immediate

revenues.

Redemptions

are

subject

to

a

two-year

holding

period

from

the

acquisition

date.

(f)

The

fund

will

seek

to

invest

in

a

global,

diversified

portfolio

of

high-quality

core

and

core-plus

mid-market

infrastructure

investments

with

stable

returns,

inflation

protection,

low

volatility,

predictable

yield

and

a

low

correlation

with

other

asset

classes

through

an

open-end

structure.

Redemptions

are

subject

to

a

three-year

holding

period

from

the

acquisition

date.

(g)

The

fund

is

an

open-ended

investment

fund

whose

objective

is

to

generate

an

attractive

total

return

through

the

acquisition

and

management

of

farmland

in

the

Midwestern

United

States.

Redemptions

are

subject

to

a

one-year

holding

period

from

the

acquisition

date.

After

the

holding

period

has

expired,

redemptions

are

permitted

with

written

redemption

notice

five

months

prior

to

the

annual

redemption

date,

which

is

the

last

day

of

February.

(h)

This

feeder

fund

represents

an

indirect

ownership

of

the

Prologis

European

Logistics

Fund

which

has

an

investment

objective

of

combining

attractive

current

income

with

long-term

capital

growth

by

investing

in

European

logistics

real

estate

assets.

Redemption

requests

accommodated

quarterly

to

the

extent

of

sufficient

liquid

assets,

with

at

least

90

days

notice.

(i)

This

feeder

fund

offers

hedging

to

protect

against

currency

movements

in

the

Global

Diversified

Infrastructure

Fund

which

invests

in

diversified

infrastructure

investments.

Redemptions

are

subject

to

a

three-year

holding

period

from

the

acquisition

date.

(j)

This

feeder

fund

represents

an

indirect

ownership

of

the

Global

Transport

Income

Fund

which

seeks

to

deliver

attractive,

risk-adjusted

returns

with

an

emphasis

on

stable

income

generation

through

investing

in

the

transport

industries.

Redemption

requests

are

allowed

three

years

after

the

third-quarter

date.

Schedule

of

Investments

Principal

Real

Asset

Fund

March

31,

2025

See

accompanying

notes.

21

(k)

This

open-end

fund

blends

the

two

asset

classes

of

timberland

and

farmland.

The

geographic

focus

will

be

in

the

U.S.,

Canada,

Australia,

New

Zealand,

Chile,

Brazil,

Uruguay,

and

Western

Europe.

Agriculture

investments

will

be

diversified

among

row

crops

(corn,

soy,

wheat,

etc.),

permanent

crops

(vines/trees),

and

commodity

crops

(cotton,

lettuce,

strawberries,

etc.).

Redemptions

are

subject

to

a

three-year

holding

period

from

the

acquisition

date.

After

the

holding

period

has

expired,

redemptions

are

permitted

with

written

redemption

notice

given

by

April

30th

of

that

year.

(l)

The

fund

will

primarily

invest,

directly

or

indirectly,

in

core

and

core

plus

infrastructure

assets

and

infrastructure

investments

focused

on

the

infrastructure

and

power

sectors.

Redemptions

are

subject

to

a

three-year

holding

period

from

the

acquisition

date.

(m)

This

feeder

fund

represents

an

indirect

ownership

of

the

IFM

Net

Zero

Infrastructure

Fund

SCSp

which

seeks

to

achieve

long-term

capital

appreciation

as

well

as

current

income

through

equity

and

equity-related

investments

in

infrastructure

assets

that

IFM

believes

will

seek

to

accelerate

the

world’s

transition

to

a

net-zero

emissions

economy.  Redemptions

are

subject

to

a

two-year

holding

period

of

the

acquisition

date.  Withdrawal

requests

need

to

be

provided

in

writing

at

least

90

days

prior

to

the

first

day

of

any

calendar

quarter.

(n)

The

fund's

primary

objective

will

be

to

make

equity

and

equity

like

investments

in

a

diversified

portfolio

of

sustainable

infrastructure,

real

assets,

and

businesses,

primarily

those

focused

on

the

development

and

deployment

of

mature

sustainable

technologies

and,

through

their

operations,

contribute

towards

accelerating

the

global

energy

transition.  Redemptions

are

subject

to

a

five-year

holding

period

from

the

Commencement

Date.

(o)

This

fund

is

comprised

of

loans

with

strong

fundamentals

and

focused

on

income

return.

Redemptions

are

available

if

inflows

of

capital

offset

the

requested

redemption

amount

and

if

liquidity

is

sufficient.

(p)

This

open-end

fund

invests

primarily

in

U.S.

farmland.

It

is

a

well-diversified

portfolio

across

many

regions

of

the

country

and

diversified

across

row

crops,

vegetable

crops,

and

permanent

crops.

Redemptions

are

permitted

with

written

redemption

notice

60

days

prior

to

the

end

of

the

quarter.

(q)

This

open-end,

commingled

private

real

estate

portfolio

combines

value-add

properties

with

capital

appreciation

potential

and

more

stable

income-generating

properties.

Properties

in

the

portfolio

typically

start

as

development,

renovation,

repositioning,

or

lease-up

stage

investments,

and

transition

toward

stabilized

assets.

Redemptions

are

permitted

with

written

redemption

notice

60

days

prior

to

the

end

of

the

quarter.

Financial

Highlights

See

accompanying

notes.

22

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

PRINCIPAL

REAL

ASSET

FUND

Class

A

shares

2025

$

25

.41‌

$

0

.69‌

$

0

.14‌

$

0

.83‌

(

$

0

.37‌

)

(

$

0

.03‌

)

(

$

0

.40‌

)

$

25

.84‌

2024

25

.40‌

0

.42‌

0

.06‌

0

.48‌

(

0

.24‌

)

(

0

.23‌

)

(

0

.47‌

)

25

.41‌

2023

28

.09‌

0

.63‌

(

1

.54‌

)

(

0

.91‌

)

(

0

.41‌

)

(

1

.37‌

)

(

1

.78‌

)

25

.40‌

2022

26

.27‌

0

.33‌

3

.34‌

3

.67‌

(

0

.37‌

)

(

1

.48‌

)

(

1

.85‌

)

28

.09‌

2021

19

.35‌

0

.49‌

7

.18‌

7

.67‌

(

0

.52‌

)

(

0

.23‌

)

(

0

.75‌

)

26

.27‌

Class

Y

shares

2025

25

.77‌

0

.85‌

0

.12‌

0

.97‌

(

0

.40‌

)

(

0

.03‌

)

(

0

.43‌

)

26

.31‌

2024

25

.68‌

0

.55‌

0

.07‌

0

.62‌

(

0

.30‌

)

(

0

.23‌

)

(

0

.53‌

)

25

.77‌

2023

28

.31‌

0

.76‌

(

1

.54‌

)

(

0

.78‌

)

(

0

.48‌

)

(

1

.37‌

)

(

1

.85‌

)

25

.68‌

2022

26

.42‌

0

.47‌

3

.36‌

3

.83‌

(

0

.42‌

)

(

1

.52‌

)

(

1

.94‌

)

28

.31‌

2021

19

.39‌

0

.62‌

7

.20‌

7

.82‌

(

0

.55‌

)

(

0

.24‌

)

(

0

.79‌

)

26

.42‌

Institutional

shares

2025

25

.51‌

0

.64‌

0

.28‌

0

.92‌

(

0

.40‌

)

(

0

.03‌

)

(

0

.43‌

)

26

.00‌

2024

25

.48‌

0

.50‌

0

.06‌

0

.56‌

(

0

.30‌

)

(

0

.23‌

)

(

0

.53‌

)

25

.51‌

2023

28

.15‌

0

.64‌

(

1

.46‌

)

(

0

.82‌

)

(

0

.48‌

)

(

1

.37‌

)

(

1

.85‌

)

25

.48‌

2022

26

.33‌

0

.42‌

3

.33‌

3

.75‌

(

0

.41‌

)

(

1

.52‌

)

(

1

.93‌

)

28

.15‌

2021

19

.36‌

0

.56‌

7

.20‌

7

.76‌

(

0

.55‌

)

(

0

.24‌

)

(

0

.79‌

)

26

.33‌

Financial

Highlights

(Continued)

See

accompanying

notes.

23

Total

Return

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Expenses

to

Average

Net

Assets

(Excluding

Interest

Expense

and

Fees)(b)

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

3

.28‌

%

(c)

,(d)

,(e)

$

833‌

1

.43‌

%

(f)

1

.39‌

%

(f)

2

.69‌

%

31

.5‌

%

2

.30‌

(c)

,(d)

,(g)

930‌

1

.48‌

(f)

1

.44‌

(f)

1

.68‌

32

.0‌

(

2

.13‌

)

(c)

,(d)

,(h)

754‌

1

.70‌

(f)

1

.66‌

(f)

2

.41‌

39

.8‌

12

.58‌

(c)

,(d)

,(i)

372‌

1

.91‌

(f)

1

.88‌

(f)

1

.19‌

45

.4‌

39

.63‌

(c)

,(d)

276‌

1

.67‌

(f)

N/A‌

(f)

2

.11‌

56

.0‌

3

.82‌

(c)

,(e)

162,159‌

0

.93‌

(f)

0

.89‌

(f)

3

.27‌

31

.5‌

2

.78‌

(c)

,(g)

135,552‌

0

.98‌

(f)

0

.94‌

(f)

2

.19‌

32

.0‌

(

1

.62‌

)

(c)

,(h)

148,223‌

1

.24‌

(f)

1

.20‌

(f)

2

.84‌

39

.8‌

13

.13‌

(c)

,(i)

187,063‌

1

.41‌

(f)

1

.38‌

(f)

1

.69‌

45

.4‌

40

.36‌

(c)

162,855‌

1

.17‌

(f)

N/A‌

(f)

2

.61‌

56

.0‌

3

.62‌

(c)

,(e)

1,345‌

1

.13‌

(f)

1

.09‌

(f)

2

.49‌

31

.5‌

2

.60‌

(c)

,(g)

10,378‌

1

.18‌

(f)

1

.14‌

(f)

1

.99‌

32

.0‌

(

1

.82‌

)

(c)

,(h)

10,753‌

1

.30‌

(f)

1

.26‌

(f)

2

.48‌

39

.8‌

12

.93‌

(c)

,(i)

627‌

1

.63‌

(f)

1

.60‌

(f)

1

.54‌

45

.4‌

40

.06‌

(c)

277‌

1

.37‌

(f)

N/A‌

(f)

2

.41‌

56

.0‌

(a)

Calculated

based

on

average

shares

outstanding

during

the

period.

(b)

Excludes

interest

expense

and

commitment

fees

charged

on

borrowings.

See

"Operating

Policies"

in

notes

to

financial

statements.

(c)

Total

return

is

calculated

using

the

traded

net

asset

value

which

may

differ

from

the

reported

net

asset

value.

The

traded

net

asset

value

is

the

net

asset

value

which

a

shareholder

would

have

paid

or

received

from

a

subscription

or

redemption.

(d)

Total

return

is

calculated

without

the

front-end

sales

charge

or

contingent

deferred

sales

charge,

if

applicable.

(e)

Total

returns

calculated

using

the

reported

net

asset

values

as

of

March

31,

2025

are

3.31%,

3.81%

and

3.65%

for

Class

A,

Class

Y

and

Institutional,

respectively.

(f)

Subject

to

Manager's

contractual

expense

limit.

(g)

Total

returns

calculated

using

the

reported

net

asset

values

as

of

March

31,

2024

are

1.94%,

2.46%

and

2.24%

for

Class

A,

Class

Y

and

Institutional,

respectively.

(h)

Total

returns

calculated

using

the

reported

net

asset

values

as

of

March

31,

2023

are

(3.11)%,

(2.64)%

and

(2.80)%

for

Class

A,

Class

Y

and

Institutional,

respectively.

(i)

Total

returns

calculated

using

the

reported

net

asset

values

as

of

March

31,

2022

are  14.32%,

14.86%,

and

14.62%

for

Class

A,

Class

Y,

and

Institutional,

respectively.

Report

of

Independent

Registered

Public

Accounting

Firm

24

To

the

Shareholders

and

the

Board

of

Trustees

of

Principal

Real

Asset

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities

of

Principal

Real

Asset

Fund

(the

“Fund”),

including

the

schedule

of

investments,

as

of

March

31,

2025,

and

the

related

statements

of

operations

and

cash

flows

for

the

year

then

ended,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

then

ended,

the

financial

highlights

for

each

of

the

five

years

in

the

period

then

ended

and

the

related

notes

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

Fund

at

March

31,

2025,

the

results

of

its

operations

and

its

cash

flows

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

then

ended

and

its

financial

highlights

for

each

of

the

five

years

in

the

period

then

ended

,

in

conformity

with

U.S.

generally

accepted

accounting

principles.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

Fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(“PCAOB”)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

The

Fund

is

not

required

to

have,

nor

were

we

engaged

to

perform,

an

audit

of

the

Fund’s

internal

control

over

financial

reporting.

As

part

of

our

audits,

we

are

required

to

obtain

an

understanding

of

internal

control

over

financial

reporting

but

not

for

the

purpose

of

expressing

an

opinion

on

the

effectiveness

of

the

Fund’s

internal

control

over

financial

reporting.

Accordingly,

we

express

no

such

opinion.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

March

31,

2025,

by

correspondence

with

the

custodian,

investment

manager

of

the

private

investment

funds

and

brokers;

when

replies

were

not

received

from

brokers

or

investment

managers

of

the

private

investment

funds,

we

performed

other

auditing

procedures.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

We

have

served

as

the

auditor

of

one

or

more

Principal

investment

companies

since

1969.

Minneapolis,

Minnesota

May

23,

2025

Shareholder

Expense

Example

Principal

Real

Asset

Fund

March

31,

2025

(unaudited)

25

As

a

shareholder

of

Principal

Real

Asset

Fund,

you

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

on

purchase

payments

and

contingent

deferred

sales

charges;

and

(2)

ongoing

costs,

including

management

fees;

distribution

fees;

and

other

fund

expenses.

In

addition

to

the

expenses

the

Fund

bears

directly,

the

Fund

may

indirectly

bear

its

pro

rata

share

of

the

expenses

incurred

by

the

investment

companies

in

which

the

Fund

invests.

This

Example

is

intended

to

help

you

understand

your

ongoing

costs

(in

dollars)

of

investing

in

Principal

Real

Asset

Fund

and

to

compare

these

costs

with

the

ongoing

costs

of

investing

in

other

funds.

The

Example

is

based

on

an

investment

of

$1,000

invested

at

the

beginning

of

the

period

and

held

for

the

entire

period

October

1,

2024

to

March

31,

2025

,

unless

otherwise

noted.

Actual

Expenses

The

first

section

of

the

table

below

provides

information

about

actual

account

values

and

actual

expenses.

You

may

use

the

information

in

this

section,

together

with

the

amount

you

invested,

to

estimate

the

expenses

that

you

paid

over

the

period.

Simply

divide

your

account

value

by

$1,000

(for

example,

an

$8,600

account

value

divided

by

$1,000

=

8.6),

then

multiply

the

result

by

the

number

in

the

first

section

under

the

heading

entitled

“Expenses

Paid

During

Period”

to

estimate

the

expenses

you

paid

on

your

account

during

this

period.

Additional

account

fees

may

apply

to

certain

types

of

investment

products

which

are

not

included

in

the

table

below.

If

they

were,

the

estimate

of

expenses

you

paid

during

the

period

would

be

higher,

and

your

ending

account

value

lower,

by

this

amount.

Hypothetical

Example

for

Comparison

Purposes

The

second

section

of

the

table

below

provides

information

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

Fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

Fund’s

actual

return.

The

hypothetical

account

values

and

expenses

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period.

You

may

use

this

information

to

compare

the

ongoing

costs

of

investing

in

the

Fund

and

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

the

other

funds.

Please

note

that

the

expenses

shown

in

the

table

are

meant

to

highlight

your

ongoing

costs

only

and

do

not

reflect

any

transaction

costs,

such

as

sales

charges

on

purchase

payments,

contingent

deferred

sales

charges,

redemption

fees

or

exchange

fees.

Therefore,

the

second

section

of

the

table

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

determine

the

relative

total

costs

of

owning

different

funds.

In

addition,

if

these

transaction

costs

were

included,

your

costs

would

have

been

higher.

Actual

Hypothetical

Beginning

Account

Value

October

1,

2024

Ending

Account

Value

March

31,

2025

Expenses

Paid

During Period

October

1,

2024 to

March

31,

2025

(a)

Beginning

Account

Value

October

1,

2024

Ending

Account

Value

March

31,

2025 

Expenses

Paid

During Period

October

1,

2024 to

March

31,

2025

(a)

Annualized

Expense

Ratio

Principal

Real

Asset

Fund

Class

A

$

1,000.00‌

$

1,001.39‌

$

7.14‌

$

1,000.00‌

$

1,017.80‌

$

7.19‌

1.43‌

%

Class

Y

1,000.00‌

1,004.22‌

4.65‌

1,000.00‌

1,020.29‌

4.68‌

0.93‌

Institutional

1,000.00‌

1,003.11‌

5.64‌

1,000.00‌

1,019.30‌

5.69‌

1.13‌

Principal

Real

Asset

Fund

(Excluding

Interest

Expense

and

Fees)

Class

A

1,000.00‌

1,001.39‌

6.94‌

1,000.00‌

1,018.00‌

6.99‌

1.39‌

Class

Y

1,000.00‌

1,004.22‌

4.45‌

1,000

.00‌

1,020.49‌

4.48‌

0.89‌

Institutional

1,000.00‌

1,003.11‌

5.44‌

1,000.00‌

1,019.50‌

5.49‌

1.09‌

(a)

Expenses

are

equal

to

a

fund's

annualized

expense

ratio

multiplied

by

the

average

account

value

over

the

period,

multiplied

by

182/365

(to

reflect

the

one-half

year

period).

26

FUND

BOARD

OF

TRUSTEES

AND

OFFICERS

The

Board

of

Trustees

(the

“Board”)

has

overall

responsibility

for

overseeing

the

Fund’s

operations

in

accordance

with

the

Investment

Act

of

1940,

as

amended

(the

“1940

Act”),

other

applicable

laws,

and

the

Fund’s

charter.

Each

member

of

the

Board

(“Board

Member”)

serves

on

the

Boards

of

the

following

investment

companies:

Principal

Private

Credit

Fund

I

and

Principal

Real

Asset

Fund

which

are

collectively

referred

to

as

the

“Fund

Complex”.

Board

Members

that

are

affiliated

persons

of

any

investment

advisor,

the

principal

distributor,

or

the

principal

underwriter

of

the

Fund

Complex

are

considered

“interested

persons”

of

the

Fund

(as

defined

in

the

1940

Act)

and

are

referred

to

as

“Interested

Board

Members”.

Board

Members

who

are

not

Interested

Board

Members

are

referred

to

as

“Independent

Board

Members”.

Each

Board

Member

generally

serves

until

the

next

annual

meeting

of

shareholders

or

until

such

Board

Member’s

earlier

death,

resignation,

or

removal.

The

Board

elects

officers

to

supervise

the

day-to-day

operations

of

the

Fund

Complex.

INDEPENDENT

BOARD

MEMBERS

INTERESTED

BOARD

MEMBERS

Correspondence

intended

for

each

Board

Member

who

is

other

than

an

Interested

Board

Member

may

be

sent

to

655

9th

Street,

Des

Moines,

IA

50392.

Name,

Position

Held

with

the

Fund

Complex,

Year

of

Birth

Principal

Occupation(s)

During

past

5

years

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

Other

Directorships

Held

by

Board

Member

During

Past

5

Years

Danielle

E.

Davis

Board

Member

since

2024

1981

Member,

Audit

Committee

Chair,

Nominating

and

Governance

Committee

Head

of

Corporate

Development

and

Strategy,

Chainalysis

(blockchain

data

company)

since

2022

Managing

Director

and

Chief

M&A

Counsel,

S&P

Global

(formerly,

HIS

Markit)

(financial

information

company)

(2018-2022)

2

None

Shane

C.

Goodwin

Board

Member

since

2024

1968

Chair,

Audit

Committee

Member,

Nominating

and

Governance

Committee

Associate

Dean

&

Professor,

Cox

School

of

Business

at

Southern

Methodist

University

since

2018

Managing

Director,

The

Center

for

Global

Enterprise

(research

and

analytics)

(2017-2023)

2

None

James

E.

Stueve

Lead

Independent

Board

Member

since

2024

Board

Member

since

2024

1964

Member,

Audit

Committee

Member,

Nominating

and

Governance

Committee

Owner,

Stueve

Insights

LLC

(consulting

services)

since

2018

Executive

Vice

President,

AIG

Financial

Distributors

(2019-2023)

2

Angel

Oak

Funds

Trust

(6)

(2018-2019)

Name,

Position

Held

with

the

Fund

Complex,

Year

of

Birth

Principal

Occupation(s)

During

past

5

years

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Board

Member

Other

Directorships

Held

by

Board

Member

During

Past

5

Years

Barbara

Wenig

Principal

Financial

Group*

2

None

Chair

and

Board

Member

since

2024

Chief

Executive

Officer

and

President

(since

2024)

1972

Executive

Managing

Director

–

Chief

Business

Officer

since

2025

Executive

Managing

Director

–

Global

Head

of

Operations

and

Services

–

Principal

Asset

Management

~

SM

(2021-2024)

Neuberger

Berman

Head

of

Client

Platform

(2018-2021)

27

FUND

COMPLEX

OFFICERS

Name,

Position

Held

with

the

Fund

Complex,

Address,

and

Year

of

Birth

Principal

Occupation(s)

During

past

5

years

George

Djurasovic

Principal

Financial

Group*

Vice

President

and

General

Counsel

Des

Moines,

IA

50392

1971

Vice

President

and

General

Counsel

–

Principal

Asset

Management

~

SM

since

2022

Artisan

Partners

Limited

Partnership

Global

Chief

Compliance

Officer

(2013-2022)

Calvin

Eib

Principal

Financial

Group*

Assistant

Tax

Counsel

Des

Moines,

IA

50392

1963

Counsel

since

2021

Transamerica

Tax

Counsel

(2016-2021)

Gina

L.

Graham

Principal

Financial

Group*

Treasurer

Des

Moines,

IA

50392

1965

Vice

President

and

Treasurer

since

2016

Megan

Hoffmann

Principal

Financial

Group*

Vice

President

and

Controller

Des

Moines,

IA

50392

1979

Senior

Director

–

Fund

Accounting

and

Administration

since

2025

Senior

Director

–

Fund

Administration

(2024)

Director

–

Accounting

(2020-2024)

Laura

B.

Latham

Principal

Financial

Group*

Counsel

and

Assistant

Secretary

Des

Moines,

IA

50392

1986

Assistant

Counsel

and

Assistant

Secretary–

Fund

Complex

(2018-2023)

Assistant

General

Counsel

since

2025

Counsel

(2018-2025)

Ann

Meiners

Principal

Financial

Group*

Vice

President

and

Assistant

Controller

Des

Moines,

IA

50392

1977

Director

–

Fund

Accounting

since

2024

Assistant

Director

–

Fund

Accounting

(2017-2024)

Diane

K.

Nelson

Principal

Financial

Group*

AML

Officer

Des

Moines,

IA

50392

1965

Director–

Compliance

since

2024

Chief

Compliance

Officer/AML

Officer

(2015-2024)

Tara

Parks

Principal

Financial

Group*

Vice

President

and

Assistant

Controller

Des

Moines,

IA

50392

1983

Senior

Director

–

Fund

Tax

since

2024

Director

–

Accounting

(2019–2024)

Deanna

Y.

Pellack

Principal

Financial

Group*

Counsel

and

Secretary

Des

Moines,

IA

50392

1987

Counsel

and

Assistant

Secretary

(2023-2024)

Assistant

Counsel

and

Assistant

Secretary

–

Fund

Complex

(2022-2023)

Counsel

since

2022

The

Northern

Trust

Company

Vice

President

(2019-2022)

Sara

L.

Reece

Principal

Financial

Group*

Vice

President

and

Chief

Operating

Officer

Des

Moines,

IA

50392

1975

Vice

President

and

Controller

–

Fund

Complex

(2016-2021)

Managing

Director

–

Global

Head

of

Fund

Services

since

2024

Managing

Director

–

Global

Funds

Ops

(2021-2024)

Director

-

Accounting

(2015-2021)

Teri

R.

Root

Principal

Financial

Group*

Chief

Compliance

Officer

Des

Moines,

IA

50392

1979

Chief

Compliance

Officer

–

Funds

since

2018

Vice

President

since

2015

28

*

The

reference

to

Principal

Financial

Group

includes

positions

held

by

the

Interested

Board

Member

/

Fund

Complex

Officer,

including

as

an

officer,

employee,

and/or

director,

with

affiliates

or

subsidiaries

of

Principal

Financial

Group.

The

titles

set

forth

here

are

each

Interested

Board

Member's

/

Fund

Complex

Officer’s

title

with

Principal

Workforce,

LLC,

an

affiliated

entity

of

PGI

that

is

the

payroll

employer

of

the

Interested

Board

Member

and

Fund

Complex

Officers.

The

Audit

Committee’s

primary

purpose

is

to

assist

the

Board

by

serving

as

an

independent

and

objective

party

to

monitor

the

Fund

Complex’s

accounting

policies,

financial

reporting

and

internal

control

system,

as

well

as

the

work

of

the

independent

registered

public

accountants.

The

Audit

Committee

assists

Board

oversight

of

1)

the

integrity

of

the

Fund

Complex’s

financial

statements;

2)

the

Fund

Complex’s

compliance

with

certain

legal

and

regulatory

requirements;

3)

the

independent

registered

public

accountants’

qualifications

and

independence;

and

4)

the

performance

of

the

Fund

Complex’s

independent

registered

public

accountants.

The

Audit

Committee

also

provides

an

open

avenue

of

communication

among

the

independent

registered

public

accountants,

the

Manager’s

internal

auditors,

Fund

Complex

management,

and

the

Board.

The

Nominating

and

Governance

Committee’s

primary

purpose

is

to

oversee

the

structure

and

efficiency

of

the

Board

and

the

committees.

The

Committee

is

responsible

for

evaluating

Board

membership

and

functions,

committee

membership

and

functions,

insurance

coverage,

and

legal

matters.

The

Committee's

nominating

functions

include

selecting

and

nominating

Independent

Board

Member

candidates

for

election

to

the

Board.

Generally,

the

Committee

requests

nominee

suggestions

from

Board

Members

and

management.

In

addition,

the

Committee

considers

candidates

recommended

by

shareholders

of

the

Fund

Complex.

Recommendations

should

be

submitted

in

writing

to

the

Principal

Funds

Complex

Secretary,

in

care

of

the

Principal

Funds

Complex,

711

High

Street,

Des

Moines,

IA

50392.

Such

recommendations

must

include

all

information

specified

in

the

Committee’s

charter

and

must

conform

with

the

procedures

set

forth

in

Appendix

A

thereto,

which

can

be

found

at

https://investors.principal.com/documents-charters.

Examples

of

such

information

include

the

nominee’s

biographical

information;

relevant

educational

and

professional

background

of

the

nominee;

the

number

of

shares

of

each

Fund

owned

of

record

and

beneficially

by

the

nominee

and

by

the

recommending

shareholder;

any

other

information

regarding

the

nominee

that

would

be

required

to

be

disclosed

in

a

proxy

statement

or

other

filing

required

to

be

made

in

connection

with

the

solicitation

of

proxies

for

the

election

of

board

members;

whether

the

nominee

is

an

“interested

person”

of

the

Fund

as

defined

in

the

1940

Act;

and

the

written

consent

of

the

nominee

to

be

named

as

a

nominee

and

serve

as

a

board

member

if

elected.

When

evaluating

a

potential

nominee

for

Independent

Board

Member,

the

Committee

may

consider,

among

other

factors:

educational

background;

relevant

business

and

industry

experience;

whether

the

person

is

an

"interested

person"

of

the

Fund

as

defined

in

the

1940

Act;

and

whether

the

person

is

willing

to

serve,

and

willing

and

able

to

commit

the

time

necessary

to

attend

meetings

and

perform

the

duties

of

an

Independent

Board

Member. In

addition,

the

Committee

may

consider

whether

a

candidate’s

background,

experience,

skills

and

views

would

complement

the

background,

experience,

skills

and

views

of

other

Board

Members

and

would

contribute

to

the

diversity

of

the

Board. The

final

decision

is

based

on

a

combination

of

factors,

including

the

strengths

and

the

experience

an

individual

may

bring

to

the

Board. 

The

Board

does

not

regularly

use

the

services

of

professional

search

firms

to

identify

or

evaluate

potential

candidates

or

nominees.

Additional

information

about

the

Fund

is

available

in

the

Prospectuses

and

the

Statement

of

Additional

Information

dated

August

1,

2024

(and

as

supplemented).

These

documents

may

be

obtained

free

of

charge

by

writing

Principal

Real

Asset

Fund,

P.O.

Box

219971,

Kansas

City,

MO

64121-9971

or

telephoning

1-800-222-5852.

The

prospectus

may

be

viewed

at

www.PrincipalAM.com/IntervalProspectuses

.

Name,

Position

Held

with

the

Fund

Complex,

Address,

and

Year

of

Birth

Principal

Occupation(s)

During

past

5

years

Michael

Scholten

Principal

Financial

Group*

Chief

Financial

Officer

Des

Moines,

IA

50392

1979

Assistant

Vice

President

and

Actuary

since

2021

Chief

Financial

Officer

–

Funds/Platforms

(2015-

2021)

Adam

U.

Shaikh

Principal

Financial

Group*

Vice

President

and

Assistant

General

Counsel,

and

Assistant

Secretary

Des

Moines,

IA

50392

1972

Assistant

Counsel

–

Fund

Complex

(2006-2023)

Associate

General

Counsel

since

2024

Assistant

General

Counsel

(2018-2024)

John

L.

Sullivan

Principal

Financial

Group*

Counsel

and

Secretary

Des

Moines,

IA

50392

1970

Counsel

and

Assistant

Secretary

(2023-2024)

Assistant

Counsel

and

Assistant

Secretary

–

Fund

Complex

(2019-2023)

Assistant

General

Counsel

since

2023

Counsel

(2019

–

2023)

Dan

L.

Westholm

Principal

Financial

Group*

Assistant

Treasurer

Des

Moines,

IA

50392

1966

Assistant

Vice

President-Treasury

since

2013

Jared

A.

Yepsen

Principal

Financial

Group*

Assistant

Tax

Counsel

Des

Moines,

IA

50392

1981

Assistant

General

Counsel

since

2023

Counsel

(2015

–

2023)

29

PROXY

VOTING

POLICIES

A

description

of

the

policies

and

procedures

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities

and

the

results

of

the

proxy

votes

for

the

most

recent

twelve

months

ended

June

30

may

be

obtained

free

of

charge

by

telephoning

1-800-222-5852,

or

on

the

SEC

website

at

www.sec.gov.

SCHEDULES

OF

INVESTMENTS

The

Fund

files

complete

schedules

of

investments

with

the

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

of

each

fiscal

year

as

an

exhibit

to

its

reports

on

Form

N-PORT.

The

Fund’s

Form

N-PORT

reports

are

available

on

the

Commission’s

website

at

www.sec.gov.

Federal

Income

Tax

Information

Principal

Real

Asset

Fund

March

31,

2025

(unaudited)

30

Long-Term

Capital

Gain

Dividends.

The

Fund

distributed

long-term

capital

gain

dividends

during

the

fiscal

year

ended

March

31,

2025

.

Details

of

designated

long-term

capital

gain

dividends

for

federal

income

tax

purposes

are

shown

in

the

Notes

to

Financial

Statements.

To

the

extent

necessary

to

distribute

such

capital

gains,

the

Fund

may

also

utilize,

and

hereby

designate,

earnings

and

profits

distributed

to

shareholders

on

redemptions

of

shares

as

part

of

the

Dividends

Paid

Deduction.

Dividends

Received

Deduction

(“DRD”).

For

corporate

shareholders,

the

Fund

designates

the

following

as

a

percentage

of

taxable

ordinary

income

distributions*

(dividend

income

and

short-term

gains,

if

any),

or

up

to

the

maximum

amount

allowable,

as

DRD

eligible

for

the

calendar

year

ended

December

31,

2024

:

*

For

purposes

of

calculating

DRD,

"ordinary

income

distributions"

includes

ordinary

dividend

income

distribution,

short

term

capital

gains

distribution,

and

the

foreign

tax

paid.

Qualified

Dividend

Income

(“QDI”).

Certain

dividends

paid

by

the

Fund

may

be

subject

to

a

maximum

tax

rate

of

20%.

The

Fund

designates

the

following

as

a

percentage

of

taxable

ordinary

income

distributions

(dividend

income

and

short-term

gains,

if

any),

or

up

to

the

maximum

amount

allowable,

as

QDI

eligible

for

the

calendar

year

ended

December

31,

2024

:

Section

163(j)

Interest

Dividends.

The

Fund

intends

to

pass

through

Section

163(j)

Interest

Dividends

as

defined

in

Proposed

Treasury

Regulation

§1.163(j)-1(b).

The

Fund

designates

the

following

as

a

percentage

of

taxable

ordinary

income

distributions

(dividend

income

and

short-term

gains,

if

any),

or

up

to

the

maximum

amount

allowable,

as

163(j)

eligible

for

the

calendar

year

ended

December

31,

2024

:

In

early

2025

,

if

applicable,

shareholders

of

record

received

the

above

information

on

QDI,

Foreign

Tax

Credit,

and

Section

199A

for

the

distribution

paid

to

them

by

the

Fund

during

the

calendar

year

2024

via

Form

1099.

The

Fund

will

notify

shareholders

in

early

2026

of

amounts

paid

to

them

by

the

Fund,

if

any,

during

the

calendar

year

2025

.

This

information

is

given

to

meet

certain

requirements

of

the

Internal

Revenue

Code

and

should

not

be

used

by

shareholders

for

preparing

their

income

tax

returns.

For

tax

return

preparation

purposes,

please

refer

to

the

information

supplied

with

the

Form

1099-DIV

you

will

receive

from

the

Fund's

transfer

agent.

The

latest

tax

reporting

supplement

is

available

on

Principal's

Tax

Center

website.

Website:

https://www.principal.com/tax-center

Please

consult

your

tax

advisor

if

you

have

any

questions.

DRD

Principal

Real

Asset

Fund

22.51%

QDI

Principal

Real

Asset

Fund

46.02%

163(j)

Interest

Dividends

Principal

Real

Asset

Fund

5.63

%

Principal

Funds

Distributor,

Inc.

711

High

Street

Des

Moines,

IA

50392-6370

Do

not

use

this

address

for

business

correspondence

PrincipalAM.com

Investing

involves

risk,

including

possible

loss

of

principal.

This

shareholder

report

is

published

as

general

information

for

the

shareholders

of

Principal

Real

Asset

Fund.

This

material

is

not

authorized

for

distribution

unless

preceded

or

accompanied

by

a

current

prospectus

or

a

summary

prospectus

that

includes

more

information

regarding

the

risk

factors,

expenses,

policies,

and

objectives

of

the

funds.

Investors

should

read

the

prospectus

or

summary

prospectus

carefully

before

investing.

To

obtain

a

prospectus

or

summary

prospectus,

please

contact

your

financial

professional

or

call

800-222-5852.

Principal

Funds

are

distributed

by

Principal

Funds

Distributor,

Inc.

Principal

®

,

Principal

Financial

Group

®

,

and

Principal

and

the

logomark

design

are

registered

trademarks

of

Principal

Financial

Services,

Inc.,

a

Principal

Financial

Group

company,

in

the

United

States

and

are

trademarks

and

services

marks

of

Principal

Financial

Services,

Inc.,

in

various

countries

around

the

world.

©

2025

Principal

Financial

Services,

Inc.

|

INF100AR-05

|

03/2025

|

4312584

ITEM 2 – CODE OF ETHICS

(a) The Registrant has adopted a code of ethics (the "Code of Ethics") that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

(b) Not applicable.

(c) The Registrant has not amended, as described in Item 2(c) of Form N-CSR, its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto.

(d) The Registrant has not granted a waiver or an implicit waiver from a provision of its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto.

(e) Not applicable.

(f) The Registrant's Code of Ethics is attached as an Exhibit hereto in response to Item 19(a)(1).

ITEM 3 – AUDIT COMMITTEE FINANCIAL EXPERT

The Registrant's Board has determined that Shane Goodwin, a member of the Registrant’s Audit Committee, is an "audit committee financial expert" and "independent," as such terms are defined in this Item.

ITEM 4 – PRINCIPAL ACCOUNTANT FEES AND SERVICES

(a) Audit Fees.

Ernst & Young is the principal accountant for the registrant. As such, Ernst & Young has audited the financial statements of the registrant and reviewed regulatory filings that include those financial statements. During the last two fiscal years, Ernst & Young has billed the following amounts for their professional services.

March 31, 2024 - $110,406

March 31, 2025 - $112,454

(b) Audit-Related Fees.

Ernst & Young provided audit-related services to the registrant that are not included in response to item 4(a). Those services related to the review of Form N-2. During the last two fiscal years, Ernst & Young has billed the following amounts for those services.

March 31, 2024 - $0

March 31, 2025 - $0

Ernst & Young billed no fees that registrant’s audit committee was required to pre-approve pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.

(c) Tax Fees.

Ernst & Young prepares and reviews the federal income tax returns and federal excise tax returns of the registrant. In connection with this service, Ernst & Young prepares and reviews the calculation of the registrant’s dividend distributions that are included as deductions on the tax returns. Ernst & Young also provides services to identify passive foreign investment companies. Ernst & Young also provides services to understand and comply with tax laws in certain foreign countries and services to determine the taxability of corporate actions. During the last two fiscal years, Ernst & Young has billed the following amounts for their professional tax services.

March 31, 2024 - $14,694

March 31, 2025 - $19,490

Ernst & Young billed no fees that registrant’s audit committee was required to pre-approve pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.

(d) All Other Fees.

Ernst & Young has not billed the registrant for other products or services during the last two fiscal years.

Ernst & Young billed no fees that registrant’s audit committee was required to pre-approve pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.

(e) (1) Audit Committee Pre-Approval Policy.

  The audit committee of the registrant has adopted the following pre-approval policy:

The Principal Funds

Policy on Auditor Independence

The purpose of this policy is to ensure the independence of the Principal Funds' primary independentauditor.This policy is establishedby the AuditCommittee (the "Committee") of the Board ofTrustees of the Principal Private Credit Fund I, Principal Real Asset Fund, and any other registered closed‑end investment companies that the Board of Trustees oversees (the “Funds”).

1.

Theprimaryindependentauditor,itssubsidiariesandaffiliatesshallnotprovideProhibited Services to the Funds.For the purposes of this policy, Prohibited Services are:

·

Servicesthataresubjecttoauditprocedureduringafinancialstatement

audit;

·

Serviceswheretheauditorwouldactonbehalfof

management;

·

Serviceswheretheauditorisanadvocatetotheclient'spositioninanadversarial proceeding;

·

Bookkeeping or other services related to the accounting records or financial statements of the Funds, its subsidiaries and affiliates;

·

Financialinformationsystemsdesignand

implementation;

·

Appraisalorvaluationservices,fairnessopinions,orcontribution-in-kind

reports;

·

Actuarial

services;

·

Internalauditfunctionsorhuman

resources;

·

Brokerordealer,investmentadvisor,orinvestmentbanking

services;

·

Legalservicesandexpertservicesunrelatedtothe

audit;

·

Tax planning services related to listed, confidential and aggressive

transactions;

·

Personal tax planning services to individuals in a financial reporting oversight rolewithregardtotheFunds(otherthanmembersoftheBoardoftheFunds who are not also officers of the Funds), including the immediate family members of such individuals;

·

Any other service that the Public Company Accounting Oversight Board (PCAOB) determines, by regulation, is impermissible; and

·

Any other service that the International Ethics Standards Board for Accountants (IESBA) determines, by regulation, is impermissible.

2.

(A) All services the primary independent auditor, its subsidiaries and affiliates provide to the Funds, and (B) Audit services, including audits of annual financial statements, audits ofacquiredordivestedbusinessesorreviewofregulatoryfilings,anyindependentauditor provides,shallbeapprovedbytheCommitteeinadvanceinaccordancewiththefollowing

procedure:

Each quarter, Management will present to the Committee for pre-approval and pre-concurrence, a detailed description of each particular service, excluding tax services, for which pre-approval and pre-concurrenceissought,andthe correspondingrangeoffeesforsuchservice.TheCommitteemay delegate pre-approval and pre-concurrence authority to one or more of its members provided such delegated member(s) shall present a report of any services so pre-approved and pre-concurred to the full Committee at its next regularly scheduled meeting.The Committee Chairperson shall have pre-approval and pre-concurrence authority for changes to any range of fees applicable to services the Committee previously approved and for new services and the range of fees for such services that arise between regularly scheduled Committee

meetings.

Similarly, the primary independent auditor will present to the Committee for pre- approval and pre-concurrence a written description of the nature and scope of all tax services not expressly prohibited, including the fee arrangements for such services, and the potential effects of such services on the audit firm’s independence.

Inconsideringwhetherto

grant

pre-approval and pre-concurrence with respect to theprimaryindependentauditor’sprovision of non-audit services, the Committee (or the delegated members(s), as applicable) will consider whether the services are compatiblewiththemaintenanceofsuchauditor'sindependence.TheCommittee (or the delegated members(s), as applicable) will also consider whether the primary independent auditor is best positioned to provide the most effective and efficient service, for reasons such as its familiarity with the Funds' business, people, culture, accounting systems, risk profile and otherfactors,andwhethertheservicemightenhancetheFunds'abilitytomanage or control risk or improve audit quality.

3.

Theprovisionsofthispolicyshallapplytoallauditandnon-auditservicesprovideddirectly to the Funds.Additionally, the provisions of this policy shall apply to non-audit services provided to Principal Global Investors, LLC (“PGI”) or an affiliate of PGI that provides ongoing services to the Funds if the engagement relates directly to the operations and financial reporting of the Funds as well as any controlled subsidiary.

4.

Not less than annually, the primary independent auditor shall report to the Committee in writingallrelationshipsthatmayreasonablybethoughttobearonindependencebetween theauditorandtheFundsorpersonsinfinancialreportingoversightroles withrespectto any services provided by the auditor, its subsidiaries or affiliates as of the date of the communication, pursuant to Rule 3526 of the PCAOB.The primary independent auditor shall discuss with the Committee the potential effects of such relationships on the independence of the auditor.In addition, the primary independent auditor shall affirm, in writing, that, as of the date of the communication, it is independent within the meaning of the federal securities laws and Rule 3520 of the PCAOB.

5.

The Committee shall monitor that the lead (or coordinating) audit partners, as well as the reviewing audit partner, of the Funds' primary independent auditor are rotated at least every five years and subject upon rotation to a five year "time out" period.All other audit partners of the primary independent auditor, excluding partners who simply consult with othersontheauditengagementregardingtechnicalissues,shallrotateaftersevenyears and be subject upon rotation to a two year "time out" period.

6.

NeithertheFundsnorPGImayhireorpromoteanyformerpartner,principal,shareholder or professional employee (Former Employee) of the primary independent auditor into a financial reporting oversight role unless the Former Employee (1) has severed his/her economic interest in the independent audit firm, and (2) was not a member of the audit engagement team for the Funds during the one year period preceding the date that the auditproceduresbeganforthefiscalperiodinwhichtheFundsorPGIproposestohireor promote the Former Employee.Neither the Funds nor PGI shall, without prior written consentoftheprimaryindependentauditor,hireorpromoteanyFormerEmployeeintoa rolenotprohibitedaboveiftheFormerEmployeehadprovidedanyservicestotheFunds orPGIduringthe12monthsprecedingthedateoffilingoftheFunds'mostrecentannual report with the SEC.Upon termination of the primary independent auditor, the Funds or PGIshallnot,withoutpriorwrittenconsentoftheformerprimaryindependentauditor,hire or promote any Former Employee for a period of up to 12 months from termination.

7.

Forpersonsrecentlypromotedorhiredintoafinancialreportingoversightrole(otherthan membersoftheBoardoftheFundswhoarenotalsoofficers

or otherwise “interested persons” (as defined by the Investment Company Act of 1940)

oftheFunds),anypersonal tax planning services pursuant to an engagement that was in progress before the hiring or promotion and provided by the primary independent auditor must be completed on or before 180 days after the hiring or promotion.

8.

The phrase "financial reporting oversight role" means a role in which a person is in a positiontoexerciseinfluenceoverthecontentsofthefinancialstatementsoranyonewho prepares them, such as a member of the board of directors or similar management or governing body, chief executive officer, president, chief operating officer, chief financial officer, counsel, controller, chief internal auditor, or any equivalent positions.

(AdoptedbytheAuditCommitteeoftheBoardoftheFundson

March 22

,

2024).

(e) (2) Pre-Approval Waivers.

There were no services, or 0%, provided to the registrant by Ernst & Young that were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

(f)

Substantially all work in connection with the audit of the registrant’s financial statements was performed by full-time employees of Ernst & Young.

(g)

The aggregate non-audit fees Ernst & Young billed to the registrant, the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the adviser that provides ongoing services to the registrant for each of registrant's last two fiscal years were as follows.

March 31, 2024 - $244,814

March 31, 2025 - $232,309

(h)

The registrant’s audit committee of the board has considered whether the provision of non-audit services that were rendered to the registrant’s investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant’s independence and notes there were no fees requiring such consideration.

(i) The registrant has not been identified by the Securities and Exchange Commission as having filed an annual report issued by a registered public accounting firm branch or office that is located in a foreign jurisdiction where the Public Company Accounting Oversight Board is unable to inspect or completely investigate because of a position of authority in that jurisdiction.

(j) the registrant is not a foreign issuer.

ITEM 5 – AUDIT COMMITTEE OF LISTED REGISTRANTS

(a) Not applicable.

(b) Not applicable.

ITEM 6 – INVESTMENTS

Schedule of Investments is included as part of the Report to Stockholders filed under Item 1 of this form.

ITEM 7 – FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES

(a) Not applicable.

(b) Not applicable.

ITEM 8 – CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 9 – PROXY DISCLOSURES FOR OPEN-END MANAGEMENT COMPANIES

Not applicable.

ITEM 10 – REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 11 – STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT

Statement Regarding Basis for Approval of Investment Advisory Contracts is included as part of the Report to Stockholders filed under Item 1 of this form.

ITEM 12 – DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Below are copies of the Registrant’s proxy voting policies and procedures, which consist of the proxy voting policies and procedures of the Registrant’s adviser, Principal Global Investors, LLC (“PGI”), and its sub-advisers.

Proxy Voting Policies and Procedures For

Principal Real Asset Fund

Principal Private Credit Fund I

(each a “Fund” and together the “Interval Funds”)

The Board has delegated responsibility for decisions regarding proxy voting for securities held by each Fund to Principal Global Investors (“PGI”) or to the Fund’s sub-advisor, as appropriate. PGI and each sub-advisor will vote such proxies in accordance with its proxy policies and procedures, which have been reviewed by the Fund’s Board. Any material changes to the proxy policies and procedures will be submitted to the Board for approval.

For Funds that participate in a securities lending program, the voting rights for securities that are loaned are transferred to the borrower. Therefore, the lender (i.e., a Fund) is not entitled to vote the loaned securities, unless it recalls those securities. Those managing the Fund’s investments may recall securities for voting purposes when they reasonably believe the ability to vote such securities outweighs the additional revenue received if such securities were not recalled.

The Funds have a policy prohibiting investment in securities of Principal Financial Group, Inc., except for those Funds that track an index and are permitted to do so under SEC no-action relief. If any such securities are owned in any of the Funds’ portfolios, the Investment Adviser will vote according to third-party guidelines. PGI has a policy to not buy securities of affiliated entities in the portfolios they manage.

Each quarter, the adviser or sub-adviser must provide to the Interval Funds:

1.Written affirmation that all proxies voted during the preceding calendar quarter, other than those specifically identified by the adviser or sub-adviser, were voted in a manner consistent with the adviser's or sub-adviser's voting policies and procedures. In order to monitor the potential effect of conflicts of interest of an adviser or sub-adviser, the adviser or sub-adviser will identify any proxies the adviser or sub-adviser voted in a manner inconsistent with its policies and procedures. The adviser or sub-adviser shall list each vote, explain why the adviser or sub-adviser voted in a manner contrary to its policies and procedures, state whether the adviser or sub-adviser’s vote was consistent with the recommendation to the adviser or sub-adviser of a third-party and, if so, identify the third-party; and

2.Written notification of any material changes to the adviser's or sub-adviser's proxy voting policies and procedures made during the preceding calendar quarter.

Annually, the adviser or sub-adviser must provide to the Interval Funds, no later than July 31, their proxy voting data for each vote cast during the 12-month period ended June 30 for each Fund portfolio or portion of Fund portfolio for which it serves as investment adviser, in a format acceptable to Fund management.

         Principal Global Investors, LLC

Proxy Voting Policy

Introduction

Principal Global Investors, LLC

[1]

 (doing business as Principal Asset Management) is an investment adviser registered with the U.S. Securities and Exchange Commission ("SEC") pursuant to the Investment Advisers Act of 1940 (the "Advisers Act"). As a registered investment adviser, Principal Asset Management has a fiduciary duty to act in the best interests of its clients. Principal Asset Management recognizes that this duty requires it to vote client securities, for which it has voting power on the applicable record date, in a timely manner and make voting decisions that are in the best interests of its clients. This document, the Principal Asset Management Proxy Voting Policies and Procedures (the "Policy"), is intended to comply with the requirements of the Investment Advisers Act of 1940, the Investment Company Act of 1940 and the Employee Retirement Income Security Act of 1974 applicable to the voting of the proxies of both US and non-US issuers on behalf of clients of Principal Asset Management who have delegated such authority and discretion.

Effective January 1, 2021, Finisterre Investment Teams adopted the policies and procedures in the Adviser's compliance manual except for the following proxy policies and procedures. Finisterre Investment Teams will continue to follow the previously adopted proxy policies and procedures until amended. Please see the Appendix to the compliance manual for Finisterre specific proxy policies and procedures.

Relationship between Investment Strategy, Sustainable Investing, and Proxy Voting

Principal Asset Management has a fiduciary duty to make investment decisions that are in its clients' best interests by maximizing the value of their shares. Proxy voting is an important part of this process through which Principal Asset Management can support strong corporate governance structures, shareholder rights, and transparency.

Principal Asset Management also believes a company's positive environmental and social practices may influence the value of the company, with a goal of leading to long-term shareholder value.

Principal Asset Management may take these factors into consideration, alongside other non­ sustainability factors, when voting proxies in its effort to seek the best outcome for its clients. We consider disclosure a useful resource in determining risks and seek to balance these disclosures with the practice and views of management. Principal Asset Management believes that the integrated consideration of sustainable investment practices may help identify sources of risk that could erode the long-term investment results it seeks on behalf of its clients. From time to time, Principal Asset Management may work with various sustainability-related organizations to engage issuers or advocate for greater levels of disclosure.

ROLES AND RESPONSIBILITIES

Role of the Proxy Voting Committee

Principal Asset Management's Proxy Voting Committee (the "Proxy Voting Committee") shall (i) oversee the voting of proxies and the Proxy Advisory Firm, (ii) where necessary, make determinations as to how to instruct the vote on certain specific proxies, (iii) verify ongoing compliance with the Policy, (iv) review the business practices of the Proxy Advisory Firm and (v) evaluate, maintain, and review the Policy on an annual basis.

The Proxy Voting Committee is comprised of representatives of each investment team and a representative from Principal Asset Management Risk, Legal, Operations, and Compliance will be available to advise the Proxy Voting Committee but are non-voting members.

The Proxy Voting Committee may designate one or more of its members to oversee specific, ongoing compliance with respect to the Policy and may designate personnel to instruct the vote on proxies on behalf the Principal Asset Management clients (collectively, "Authorized Persons").

The Proxy Voting Committee shall meet at least four times per year, and as necessary to address special situations.

Role of Portfolio Management

While the Proxy Voting Committee establishes the Guidelines and Procedures, the Proxy Voting Committee does not direct votes for any client except in certain cases where a conflict of interest exists. Each investment team is responsible for determining how to vote proxies for those securities held in the portfolios their team manages. While investment teams generally vote consistently with the Guidelines, there may be instances where their vote deviates from the Guidelines. In those circumstances, the investment team will work within the Exception Process. In some instances, the same security may be held by more than one investment team. In these cases, Principal Asset Management may vote differently on the same matter for different accounts as determined by each investment team.

Proxy Voting Guidelines

The Proxy Voting Committee, on an annual basis, or more frequently as needed, will direct each investment team to review draft proxy voting guidelines recommended by the Committee ("Draft Guidelines"). The Proxy Voting Committee will collect the reviews of the Draft Guidelines to determine whether any investment teams have positions on issues that deviate from the Draft Guidelines. Based on this review, Principal Asset Management will adopt proxy voting guidelines. Where an investment team has a position which deviates from the Draft Guidelines, an alternative set of guidelines for that investment team may be created. Collectively, these guidelines will constitute the current Proxy Voting Guidelines of Principal Asset Management and may change from time to time (the "Guidelines"). The Proxy Voting Committee has the obligation to determine that, in general, voting proxies pursuant to the Guidelines is in the best interests of clients. Exhibit A (Base) and Exhibit B (Sustainable) to the Policy sets forth the current Guidelines.

There may be instances where proxy votes will not be in accordance with the Guidelines. Clients may instruct Principal Asset Management to utilize a different set of guidelines, request specific deviations, or directly assume responsibility for the voting of proxies. In addition, Principal Asset Management may deviate from the Guidelines on an exception basis if the investment team or Principal Asset Management has determined that it is the best interest of clients in a particular strategy to do so, or where the Guidelines do not direct a particular response and instead list relevant factors. Any such a deviation will comply with the Exception Process which shall include a written record setting out the rationale for the deviation.

The subject of the proxy vote may not be covered in the Guidelines. In situations where the Guidelines do not provide a position, Principal Asset Management will consider the relevant facts and circumstances of a particular vote and then vote in a manner Principal Asset Management believes to be in the clients' bests interests. In such circumstance, the analysis will be documented in writing and periodically presented to the Proxy Voting Committee. To the extent that the Guidelines do not cover potential voting issues, Principal Asset Management may consider the spirit of the Guidelines and instruct the vote on such issues believed to be in the best interests of the client.

Use of Proxy Advisory Firms

Principal Asset Management has retained one or more third-party proxy service provider(s) (the "Proxy Advisory Firm") to provide recommendations for proxy voting guidelines, information on shareholder meeting dates and proxy materials, translate proxy materials printed in a foreign language, provide research on proxy proposals, operationally process votes in accordance with the Guidelines on behalf of the clients for whom Principal Asset Management has proxy voting responsibility, and provide reports concerning the proxies voted ("Proxy Voting Services"). Although Principal Asset Management has retained the Proxy Advisory Firm for Proxy Voting Services, the entity remains responsible for proxy voting decisions. Principal Asset Management has designed the Policy to oversee and evaluate the Proxy Advisory Firm, including with respect to the matters described below, to support its voting in accordance with this Policy.

Oversight of Proxy Advisory Firms

Prior to the selection of any new Proxy Advisory Firm and annually thereafter or more frequently if deemed necessary by Principal Asset Management, the Proxy Voting Committee will consider whether the Proxy Advisory Firm: (a) has the capacity and competency to adequately analyze proxy issues and provide the Proxy Voting Services the Proxy Advisory Firm has been engaged to provide and (b) can make its recommendations in an impartial manner, in consideration of the best interests of Principal Asset Management's clients, and consistent with its voting policies. Such considerations may include, depending on the Proxy Voting Services provided, the following: (i) periodic sampling of votes pre­ populated by the Proxy Advisory Firm's systems as well as votes cast by the Proxy Advisory Firm to review that the Guidelines adopted by Principal Asset Management are being followed; (ii) onsite visits to the Proxy Advisory Firm office and/or discussions with the Proxy Advisory Firm to determine whether the Proxy Advisory Firm continues to have the capacity and competency to carry out its proxy obligations to Principal Asset Management; (iii) a review of those aspects of the Proxy Advisory Firm's policies, procedures, and methodologies for formulating voting recommendations that Principal Asset Management considers material to Proxy Voting Services, including factors considered, with a particular focus on those relating to identifying, addressing, and disclosing potential conflicts of interest (including potential conflicts related to the provision of Proxy Voting Services, activities other than Proxy Voting Services, and those presented by affiliation such as a controlling shareholder of the Proxy Advisory Firm) and monitoring that materially current, accurate, and complete information is used in creating recommendations and research; (iv) requiring the Proxy Advisory Firm to notify Principal Asset Management if there is a substantive change in the Proxy Advisory Firm's policies and procedures or otherwise to business practices, including with respect to conflicts, information gathering and creating voting recommendations and research, and reviewing any such change(s); (v) a review of how and when the Proxy Advisory Firm engages with, and receives and incorporates input from, issuers, the Proxy Advisory Firm's clients and other third-party information sources; (vi) assessing how the Proxy Advisory Firm considers factors unique to a specific issuer or proposal when evaluating a matter subject to a shareholder vote; (vii) in case of an error made by the Proxy Advisory Firm, discussing the error with the Proxy Advisory Firm and determining whether appropriate corrective and preventive action is being taken; and (viii) assessing whether the Proxy Advisory Firm appropriately updates its methodologies, guidelines, and voting recommendations on an ongoing basis and incorporates input from issuers and Proxy Advisory Firm clients in the update process. In evaluating the Proxy Advisory Firm, Principal Asset Management may also consider the adequacy and quality of the Proxy Advisory Firm's staffing, personnel, and/or technology.

Procedures for Voting Proxies

To increase the efficiency of the voting process, Principal Asset Management utilizes the Proxy Advisory Firm to act as its voting agent for its clients' holdings. Issuers initially send proxy information to the clients' custodians.

Principal Asset Management instructs these custodians to direct proxy related materials to the Proxy Advisory Firm. The Proxy Advisory Firm provides Principal Asset Management with research related to each resolution. Principal Asset Management analyzes relevant proxy materials on behalf of their clients and seeks to instruct the vote (or refrain from voting) in accordance with the Guidelines. A client may direct Principal Asset Management to vote for such client's account differently than what would occur in applying the Policy and the Guidelines. Principal Asset Management may also agree to follow a client's individualized proxy voting guidelines or otherwise agree with a client on particular voting considerations. Principal Asset Management seeks to vote (or refrain from voting) proxies for its clients in a manner determined to be in their best interests, which may include both considering both the effect on the value of the client's investments and ESG factors. In some cases, Principal Asset Management may determine that it is in the best interests of clients to refrain from exercising the clients' proxy voting rights. Principal Asset Management may determine that voting is not in the best interests of a client and refrain from voting if the costs, including the opportunity costs, of voting would, in the view of Principal Asset Management, exceed the expected benefits of voting to the client.

Procedures for Proxy Issues within the Guidelines

Where the Guidelines address the proxy matter being voted on, the Proxy Advisor Firm will generally process all proxy votes in accordance with the Guidelines. The applicable investment team may provide instructions to vote contrary to the Guidelines in their discretion and with sufficient rationale documented in writing to seek to maximize the value of the client's investments or is otherwise in the client's best interest. This rationale will be submitted to Principal Asset Management Compliance to approve and once approved, is administered by Principal Asset Management Operations. This process will follow the Exception Process. The Proxy Voting Committee will receive and review a quarterly report summarizing all proxy votes for securities for which Principal Asset Management exercises voting authority. In certain cases, a client may have elected to have Principal Asset Management administer a custom policy which is unique to the Client. If Principal Asset Management is also responsible for the administration of such a policy, in general, except for the specific policy differences, the procedures documented here will also be applicable, excluding reporting and disclosure procedures.

Procedures for Proxy Issues Outside the Guidelines

To the extent that the Guidelines do not cover potential voting issues, the Proxy Advisory Firm will seek direction from Principal Asset Management. Principal Asset Management may consider the spirit of the Guidelines and instruct the vote on such issues in a manner believed to be in the best interests of the client. Although this not an exception to the Guidelines, this process will also follow the Exception Process. The Proxy Voting Committee will receive and review a quarterly report summarizing all proxy votes for securities for which Principal Asset Management exercises voting discretion, which shall include instances where issues fall outside the Guidelines.

Securities Lending

Some clients may have entered into securities lending arrangements with agent lenders to generate additional revenue. If a client participates in such lending, the client will need to inform Principal Asset Management as part of their contract with Principal Asset Management if they require Principal Asset Management to take actions in regard to voting securities that have been lent. If not commemorated in such agreement nor dictated by regulatory requirements, Principal Asset Management will not recall securities and, as such, they will not have an obligation to direct the proxy voting of lent securities.

In the case of lending, Principal Asset Management maintains one share for each company security out on loan by the client. Principal Asset Management will vote the remaining share in these circumstances.

In cases where Principal Asset Management does not receive a solicitation or enough information within a sufficient time (as reasonably determined by Principal Asset Management) prior to the proxy­ voting deadline, Principal Asset Management or the Proxy Advisory Firm may be unable to vote.

Regional Variances in Proxy Voting

Principal Asset Management utilizes the Policy and Guidelines for both US and non-US clients, and there are some significant differences between voting U.S. company proxies and voting non-U.S. company proxies. For U.S. companies, it is usually relatively easy to vote proxies, as the proxies are typically received automatically and may be voted by mail or electronically. In most cases, the officers of a U.S. company soliciting a proxy act as proxies for the company's shareholders.

With respect to non-U.S. companies, we make reasonable efforts to vote most proxies and follow a similar process to those in the U.S. However, in some cases it may be both difficult and costly to vote proxies due to local regulations, customs or other requirements or restrictions, and such circumstances and expected costs may outweigh any anticipated economic benefit of voting. The major difficulties and costs may include: (i) appointing a proxy; (ii) obtaining reliable information about the time and location of a meeting; (iii) obtaining relevant information about voting procedures for foreign shareholders; (iv) restrictions on trading securities that are subject to proxy votes (share-blocking periods); (v) arranging for a proxy to vote locally in person; (vi) fees charged by custody banks for providing certain services with regard to voting proxies; and (vii) foregone income from securities lending programs. In certain instances, it may be determined by Principal Asset Management that the anticipated economic benefit outweighs the expected cost of voting. Principal Asset Management intends to make their determination on whether to vote proxies of non-U.S. companies on a case-by­ case basis. In doing so, Principal Asset Management shall evaluate market requirements and impediments, including the difficulties set forth above, for voting proxies of companies in each country. Principal Asset Management periodically reviews voting logistics, including costs and other voting difficulties, on a client by client and country by country basis, in order to determine if there have been any material changes that would affect Principal Asset Management's determinations and procedures.

Conflicts of Interest

Principal Asset Management recognizes that, from time to time, potential conflicts of interest may exist. In order to avoid any perceived or actual conflict of interest, the procedures set forth below have been established for use when Principal Asset Management encounters a potential conflict to ensure that its voting decisions are based on maximizing shareholder value and are not the product of a conflict.

Addressing Conflicts of Interest - Exception Process

Prior to voting contrary to the Guidelines, the relevant investment team must complete and submit a report to Principal Asset Management Compliance setting out the name of the security, the issue up for vote, a summary of the Guidelines' recommendation, the vote changes requested and the rational for voting against the Guidelines' recommendation. The member of the investment team requesting the exception must attest to compliance with Principal's Code of Conduct and has an affirmative obligation to disclose any known personal or business relationship that could affect the voting of the applicable proxy. Principal Asset Management Compliance will approve or deny the exception in consultation, if deemed necessary, with the Legal.

If Principal Asset Management Compliance determines that no potential material conflict exists, the Guidelines may be overridden. If Principal Asset Management Compliance determines that there exists or may exist a material conflict, it will refer the issue to the Proxy Voting Committee. The Proxy Voting Committee will consider the facts and circumstances of the pending proxy vote and the potential or actual material conflict and decide by a majority vote as to how to vote the proxy - i.e., whether to permit or deny the exception.

In considering the proxy vote and potential material conflict of interest, the Proxy Voting Committee may review the following factors:

•

The percentage of outstanding securities of the issuer held on behalf of clients by Principal Asset Management;

•

The nature of the relationship of the issuer with Principal Asset Management, its affiliates, or its executive officers;

•

Whether there has been any attempt to directly or indirectly influence the investment team's decision;

•

Whether the direction of the proposed vote would appear to benefit Principal Asset Management or a related party; and/or

•

Whether an objective decision to vote in a certain way will still create a strong appearance of a conflict.

To further address potential conflicts of interest for any proxy votes specific to Principal Financial Group common stock, the exception process is not applicable. In the case of any proprietary electronically traded funds ("ETF"s), mutual funds or other comingled proprietary vehicles, PGI will vote in the same proportion as all other voting shareholders of the underlying fund/vehicle, which is referred to as echo voting, and the exception process is not applicable If echo voting is not available or operationally feasible, PGI may abstain from voting.

In the event that the Proxy Advisor Firm itself has a conflict and thus is unable to provide a recommendation, the investment team may vote in accordance with the recommendation of another independent service provider, if available. If a recommendation from an independent service provider other than the Proxy Advisor Firm is not available, the investment team will follow the Exception Process. Principal Asset Management Compliance will review the form and if it determines that there is no potential material conflict mandating a voting recommendation from the Proxy Voting Committee, the investment team may instruct the Proxy Advisory Firm to vote the proxy issue as it determines is in the best interest of clients. If Principal Asset Management Compliance determines that there exists or may exist a material conflict, it will refer the issue to the Proxy Voting Committee for consideration as outlined above.

Availability of Proxy Voting Information and Recordkeeping

Disclosure

Principal Asset Management publicly discloses on our website Principal Asset Management Vote Disclosure. The interactive voting dashboard, allows for dynamic disclosure of the manner in which votes were cast, including details related to (i) votes against management, (ii) abstentions, (iii) vote rationale, and (iii) voting metrics. For more information, Clients may contact Principal Asset Management for details related to how Principal Asset Management has voted with respect to securities held in the Client's account. On request, Principal Asset Management will provide clients with a summary of Principal Asset Management's proxy voting guidelines, process, and policies and will inform the clients how they can obtain a copy of the complete Proxy Voting Policies and Procedures upon request. Principal Asset Management will also include such information described in the preceding two sentences in Part 2A of its Form ADV.

Recordkeeping

Principal Asset Management will keep records of the following items: (i) the Guidelines; (ii) the Proxy Voting Policies and Procedures; (iii) proxy statements received regarding client securities (unless such statements are available on the SEC's Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system); (iv) records of votes they cast on behalf of clients, which may be maintained by a Proxy Advisory Firm if it undertakes to provide copies of those records promptly upon request; (v) records of written client requests for proxy voting information and responses from Principal Asset Management (whether a client's request was oral or in writing); (vi) any documents prepared by Principal Asset Management that were material to making a decision how to vote, or that memorialized the basis for the decision; (vii) a record of any testing conducted on any Proxy Advisory Firm's votes; (viii) materials collected and reviewed by Principal Asset Management as part of its due diligence of the Proxy Advisory Firm; (ix) a copy of each version of the Proxy Advisory Firm's policies and procedures provided to Principal Asset Management; and (x) the minutes of the Proxy Voting Committee meetings. All of the records referenced above will be kept in an easily accessible place for at least the length of time required by local regulation and custom, and, if such local regulation requires that records are kept for less than six years from the end of the fiscal year during which the last entry was made on such record, we will follow the US rule of six years. If the local regulation requires that records are kept for more than six years, we will comply with the local regulation. We maintain the vast majority of these records electronically.

ITEM 13 – PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

This section contains information about portfolio managers and the other accounts they manage, their compensation, and their ownership of securities. The “Ownership of Securities” tables reflect the portfolio managers’ beneficial ownership, which means a direct or indirect pecuniary interest.

Information in this section is as of March 31, 2025, unless otherwise noted.

(a)(1)

Jessica S. Bush has been with Principal® since 2006. She earned a bachelor’s degree in Business Administration from the University of Michigan. Ms. Bush has earned the right to use the Chartered Financial Analyst designation.

Benjamin E. Rotenberg has been with Principal® since 2014. He earned a bachelor’s degree in International Relations and Russian from Pomona College. Mr. Rotenberg has earned the right to use the Chartered Financial Analyst and the Chartered Alternative Investment Analyst designations.

May Tong has been with Principal® since 2021. Prior to that, Ms. Tong was a Senior Vice President, Portfolio Manager for Franklin Templeton Multi-Asset Solutions since 2018. She earned a bachelor’s degree in Accounting and Finance from Boston College and an M.B.A. from Columbia University. Ms. Tong has earned the right to use the Chartered Financial Analyst designation.

(a)(2)

The following table provides information relating to other accounts managed by the Registrant’s portfolio managers disclosed in (a)(1) above.

Other Accounts Managed
			Number of	Total Assets of the
Principal Real Asset Fund	Total Number	Total Assets in the	Accounts that Base the Advisory Fee on	Accounts that Base the Advisory Fee on
	of Accounts	Accounts	Performance	Performance
Jessica S. Bush
Registered investment companies	3	$10,131,573,274	0	N/A
Other pooled investment vehicles	1	$2,811,872,528	0	N/A
Other accounts	0	N/A	0	N/A
Benjamin E. Rotenberg
Registered investment companies	3	$10,131,573,274	0	N/A
Other pooled investment vehicles	1	$2,811,872,528	0	N/A
Other accounts	0	N/A	0	N/A
May Tong
Registered investment companies	3	$76,528,955,035	0	N/A
Other pooled investment vehicles	1	$69,324,708,488	0	N/A
Other accounts	0	N/A	0	N/A

Conflicts of Interest

Portfolio managers at PGI and the Sub-Advisors typically manage multiple accounts. These accounts may include, among others, mutual funds, proprietary accounts, and separate accounts (assets managed on behalf of pension funds, foundations, and other investment accounts). The management of multiple funds and accounts may give rise to potential conflicts of interest if the funds and accounts have different objectives, benchmarks, time horizons, and fees. In addition, the side-by-side management of these funds and accounts may raise potential conflicts of interest relating to cross trading, the allocation of investment opportunities, and the aggregation and allocation of trades. PGI seeks to provide best execution of all securities transactions and aggregate and then allocate securities to client accounts in a fair and timely manner. To this end, PGI has developed policies and procedures designed to mitigate and manage the potential conflicts of interest that may arise from side-by-side management.

Sub-Advisor and Underlying Fund Manager Conflicts

Conflicts of interest may arise from the fact that the sub-advisors, managers of underlying funds, and their affiliates generally will be carrying on substantial investment activities for other accounts, in which the Fund will have no interest. Such advisors may have financial incentives to favor certain of such accounts over the Fund. Any of these accounts may compete with the Fund for specific trades or may hold positions opposite to positions maintained on behalf of the Fund. Such advisors, either acting as a sub-advisor or on behalf of an underlying fund, may give advice and recommend securities to, or buy or sell securities for, the Fund, which advice or securities may differ from advice given to, or securities recommended or bought or sold for, such advisor's accounts even though their investment objectives may be the same as, or similar to, those of the Fund.

Each such advisor will evaluate a variety of factors that may be relevant in determining whether a particular investment opportunity or strategy is appropriate and feasible for the Fund and/or other accounts under management at a particular time. Because these considerations may differ, the investment activities of the Fund, on the one hand, and other managed accounts, on the other hand, may differ considerably from time to time. In addition, the fees and expenses of the Fund may differ from those of the other managed accounts. Accordingly, prospective investors in the Fund should note that the future performance of the Fund and its advisors’ other accounts will vary.

Additionally, such advisors may have an incentive to favor certain of their accounts over the Fund as they may have proprietary investments in those accounts or receive greater compensation for managing them than they do for managing the Fund’s trading.

(a)(3)

PGI offers the Fund's investment professionals a competitive compensation structure that is evaluated annually relative to other global asset management firms to ensure its continued competitiveness and alignment with industry best practices. The objective of the structure is to offer market competitive compensation that aligns individual and team contributions with firm and client performance objectives in a manner that is consistent with industry standards and business results.

Compensation for the Fund's investment team is comprised of base salary and variable incentive components. As team members advance in their careers, the variable component increases in its proportion commensurate with responsibility levels. The variable component is designed to reinforce delivery of investment performance, firm performance, team collaboration, regulatory compliance, operational excellence, client retention and client satisfaction. Investment performance is measured on a pretax basis against relative client benchmarks and peer groups over one year, three-year and five-year periods, calculated quarterly, reinforcing a longer term orientation.

Payments under the variable incentive plan are delivered in the form of cash or a combination of cash and deferred compensation. The amount of incentive delivered in the form of deferred compensation depends on the size of an individual’s incentive award as it relates to a tiered deferral scale. Deferred compensation is required to be invested into Principal Financial Group (“PFG”) restricted stock units and funds managed by the team, via a co-investment program. Both payment vehicles are subject to a three year vesting schedule. The overall measurement framework and the deferred component are well aligned with our desired focus on clients’ objectives (e.g. co-investment), alignment with Principal stakeholders, and talent retention.

In addition to deferred compensation obtained through their compensation programming, team members have investments acquired through their participation in the PFG’s employee stock purchase plan, retirement plans, and direct personal investments. It should be noted that the Company’s retirement plans and deferred compensation plans generally utilize its non-registered group separate accounts or commingled vehicles rather than the traditional mutual funds. However, in each instance these vehicles are managed in lockstep alignment with the mutual funds (i.e. “clones”).

(a)(4)   The portfolio managers disclosed in (a)(1) above own shares of the Registrant as follows:

Portfolio Manager	Dollar Range of Securities Owned by the Portfolio Manager
Jessica S. Bush	$50,001 - $100,000
Benjamin E. Rotenberg	None
May Tong	None

(b)        Not applicable.

ITEM 14 – PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

Not applicable.

ITEM 15 – SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS

None.

ITEM 16 – CONTROLS AND PROCEDURES

a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing).

(b) There have been no changes in the registrant’s internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant’s internal control over financial reporting.

ITEM 17 – DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 18 – RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION

(a) Not applicable.

(b)

Not applicable.

ITEM 19 – EXHIBITS

(a)(1) Code of Ethics required to be disclosed under Item 2 of Form N-CSR attached hereto as

Exhibit 99.CODE ETH

.

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940 are attached hereto as

Exhibit 99.CERT

.

(b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(b) under the Investment Company Act of 1940 is attached hereto as

Exhibit 99.906CERT

.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

(Registrant) Principal Real Asset Fund

By /s/ Barbara Wenig

               Barbara Wenig, President and Chief Executive Officer (Principal Executive Officer)

Date 5/12/2025

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

By /s/ Barbara Wenig

              Barbara Wenig, President and Chief Executive Officer (Principal Executive Officer)

Date 5/12/2025

By /s/ Michael Scholten

              Michael Scholten, Chief Financial Officer (Principal Financial Officer)

Date 5/12/2025

[1]

Principal Global Investors, LLC ("PGI") began using Principal Asset Management ("Principal AM") as a DBA (doing business as) name and PGI will be referenced throughout this document as Principal AM (or "the Firm"). While Principal AM may include other entities, this Charter refers specifically to PGI and Principal Real Estate Investors, LLC.