N-CSRS 1 primary-document.htm
 
 
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, 2026
 
 
 
 
 
Date of reporting period:
September 30, 2025
 

 
 
 
ITEM 1 – REPORT TO STOCKHOLDERS
 
Principal
Real
Asset
Fund
Semi-Annual
Report
September
30,
2025
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If
your
shares
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Principal
Funds
but
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firm,
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available.
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
Financial
Statements
1
Notes
to
Financial
Statements
5
Schedule
of
Investments
14
Financial
Highlights
(includes
performance
information)
18
Shareholder
Expense
Example
20
Supplemental
Information
21
Statement
of
Assets
and
Liabilities
September
30,
2025
(unaudited)
1
See
accompanying
notes.
Amounts
in
thousands,
except
per
share
amounts
Principal
Real
Asset
Fund
Investment
in
securities--at
cost
............................................................................................................................
$
152,128‌
Foreign
currency--at
cost
....................................................................................................................................
$
487‌
Assets
Investment
in
securities--at
value 
............................................................................................................................
$
163,692‌
Foreign
currency--at
value
....................................................................................................................................
488‌
Cash
...........................................................................................................................................................
142‌
Receivables:
Dividends
and
interest
...................................................................................................................................
636‌
Expense
reimbursement
from
Manager
.................................................................................................................
208‌
Investment
securities
sold
...............................................................................................................................
2‌
Prepaid
expenses
..............................................................................................................................................
9‌
Total
Assets  
165,177‌
Liabilities
(a)
Accrued
management
and
investment
advisory
fees
..........................................................................................................
226‌
Accrued
transfer
agent
fees
...................................................................................................................................
15‌
Accrued
chief
compliance
officer
fees
........................................................................................................................
1‌
Accrued
directors'
expenses
...................................................................................................................................
43‌
Accrued
professional
fees
.....................................................................................................................................
202‌
Accrued
other
expenses
.......................................................................................................................................
17‌
Payables:
Investment
securities
purchased
........................................................................................................................
975‌
Total
Liabilities  
1,479‌
Net
Assets
Applicable
to
Outstanding
Shares
..............................................................................................................
$
163,698‌
Net
Assets
Consist
of:
Capital
shares
and
additional
paid-in-capital
.................................................................................................................
$
144,060‌
Total
distributable
earnings
(accumulated
loss)
...............................................................................................................
19,638‌
Total
Net
Assets 
$
163,698‌
Capital
Stock
(par
value:
$.01
per
share):
Net
Asset
Value
Per
Share:
Class
A
:
Net
Assets
............................................................................................................................................
$
523‌
Shares
Issued
and
Outstanding
..........................................................................................................................
19‌
Net
Asset
Value
per
share
...............................................................................................................................
$
27
.03‌
(b)
Maximum
Offering
Price
................................................................................................................................
$
28
.68‌
Class
Y
:
Net
Assets
............................................................................................................................................
$
162,102‌
Shares
Issued
and
Outstanding
..........................................................................................................................
5,875‌
Net
Asset
Value
per
share
...............................................................................................................................
$
27
.59‌
Institutional
:
Net
Assets
.......................................................................................................................................
$
1,073‌
Shares
Issued
and
Outstanding
..........................................................................................................................
39‌
Net
Asset
Value
per
share
...............................................................................................................................
$
27
.23‌
(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
Six
Months
Ended
September
30,
2025
(unaudited)
2
See
accompanying
notes.
Amounts
in
thousands
Principal
Real
Asset
Fund
Net
Investment
Income
(Loss)
Income:
Dividends
...................................................................................................................................................
$
3,623‌
Withholding
tax
............................................................................................................................................
(
52‌
)
Total
Income
3,571‌
Expenses:
Management
and
investment
advisory
fees
................................................................................................................
1,359‌
Distribution
f
ees
-
Class
A
.................................................................................................................................
1‌
Registration
fees
-
Class
A
.................................................................................................................................
8‌
Registration
fees
-
Class
Y
.................................................................................................................................
8‌
Registration
fees
-
Institutional
............................................................................................................................
8‌
Shareholder
reports
-
Class
A
..............................................................................................................................
8‌
Shareholder
reports
-
Institutional
.........................................................................................................................
2‌
Transfer agent
fees
-
Class
A
...............................................................................................................................
11‌
Transfer agent
fees
-
Class
Y
...............................................................................................................................
19‌
Transfer agent
fees
-
Institutional
..........................................................................................................................
21‌
Chief
compliance
officer
expenses
.........................................................................................................................
1‌
Custodian
fees
..............................................................................................................................................
11‌
Directors'
expenses
.........................................................................................................................................
129‌
Professional fees
...........................................................................................................................................
214‌
Other
expenses
.............................................................................................................................................
76‌
Total
Gross
Expenses
1,876‌
Less: Reimbursement
from
Manager
......................................................................................................................
656‌
Less:
Reimbursement
from
Manager
-
Class
A
............................................................................................................
29‌
Less:
Reimbursement
from
Manager
-
Class
Y
............................................................................................................
412‌
Less:
Reimbursement
from
Manager
-
Institutional
.......................................................................................................
32‌
Total
Net
Expenses
747‌
Net
Investment
Income
(Loss)
2,824‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
Net
realized
gain
(loss)
from:
Investment
transactions
 (
net
of
foreign
taxes
of 
$
(
1
)
,
respectively)
......................................................................................
758‌
Foreign
currency
transactions
..............................................................................................................................
(
1‌
)
Net
change
in
unrealized
appreciation/(depreciation)
of:
Investments
.................................................................................................................................................
5,533‌
Translation
of
assets
and
liabilities
in
foreign
currencies
..................................................................................................
1‌
Net
Realized
and
Unrealized
Gain
(Loss)
on
investments
6,291‌
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
$
9,115‌
Statement
of
Changes
in
Net
Assets
(unaudited)
3
See
accompanying
notes.
Amounts
in
thousands
Principal
Real
Asset
Fund
Period
Ended
September
30,
2025
Year
Ended
March
31,
2025
Operations
Net
investment
income
(loss)
........................................................................................................
$
2,824‌
$
5,386‌
Net
realized
gain
(loss)
on
investments
and
foreign
currencies
.....................................................................
757‌
749‌
Net
change
in
unrealized
appreciation/(depreciation)
of
investments
and
foreign
currencies
.......................................
5,534‌
(
526‌
)
Net
Increase
(Decrease)
in
Net
Assets
Resulting
from
Operations
9,115‌
5,609‌
Dividends
and
Distributions
to
Shareholders
From
net
investment
income
and
net
realized
gain
on
investments
.................................................................
(
1,501‌
)
(
2,516‌
)
Total
Dividends
and
Distributions
(
1,501‌
)
(
2,516‌
)
Capital
Share
Transactions
Net
increase
(decrease)
in
capital
share
transactions
................................................................................
(
8,253‌
)
14,384‌
Total
Increase
(Decrease)
in
Net
Assets
(
639‌
)
17,477‌
Net
Assets
Beginning
of
period
..................................................................................................................
164,337‌
146,860‌
End
of
period
........................................................................................................................
$
163,698‌
$
164,337‌
Class
A
Class
Y
Institutional
Capital
Share
Transactions:
Period
Ended
September
30,
2025
Dollars:
Sold
.........................................................................................
$
26‌
–‌
$
7‌
Reinvested
....................................................................................
1‌
1,486‌
–‌
Redeemed
.....................................................................................
(
362‌
)
(
9,083‌
)
(
328‌
)
Net
Increase
(Decrease)
$
(
335‌
)
$
(
7,597‌
)
$
(
321‌
)
Shares:
Sold
.........................................................................................
1‌
–‌
–‌
Reinvested
....................................................................................
–‌
56‌
–‌
Redeemed
.....................................................................................
(
14‌
)
(
344‌
)
(
13‌
)
Net
Increase
(Decrease)
(
13‌
)
(
288‌
)
(
13‌
)
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
)
Dividends
and
Distributions
to
Shareholders:
Period Ended
September
30,
2025
From
net
investment
income
and
net
realized
gain
on
investments
.............................................
$
(
5‌
)
$
(
1,486‌
)
$
(
10‌
)
Total
Dividends
and
Distributions
$
(
5‌
)
$
(
1,486‌
)
$
(
10‌
)
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
)
Statement
of
Cash
Flows
Six
Months
Ended
September
30,
2025
(unaudited)
4
See
accompanying
notes.
Amounts
in
thousands
Principal
Real
Asset
Fund
Cash
Flows
from
Operating
Activities:
Net 
increase
in
net
assets
from
operations
..................................................................................
$
9,115
Adjustments
to
reconcile
net
increase
in
net
assets
from
operations
to
net
cash
provided
by
operating
activities:
Purchase
of
investment
securities
...................................................................................
(
17,425
)
Proceeds
from
sale
of
investment
securities
............................................................................
20,632
Net
sales
or
(purchases)
of
short
term
securities
.........................................................................
10,439
Change
in
unrealized
(appreciation)
depreciation
on
investments
.............................................................
(
5,534
)
Net
realized
(gain)
loss
from
investments
..............................................................................
(
757
)
(Increase)
decrease
in
dividends
and
interest
receivable
....................................................................
17
(Increase)
decrease
in
investment
securities
sold
.........................................................................
241
Increase
(decrease)
in
accrued
fees,
expenses,
and
expense
reimbursement
from
Manager
...........................................
(
40
)
Increase
(decrease)
in
investment
securities
purchased
....................................................................
(
6,342
)
Net
cash  provided
by
operating
activities
10,346
Cash
Flows
from
Financing
Activities:
Increase
(decrease)
in
cash
overdraft
.................................................................................
(
206
)
Proceeds
from
shares
sold
.........................................................................................
33
Payment
on
shares
redeemed
.......................................................................................
(
9,773
)
Dividends
and
distributions
paid
to
shareholders
.........................................................................
(
14
)
Net
cash  used
in
financing
activities
(
9,960
)
Net
increase
 in
cash
.............................................................................................
386
Cash
and
foreign
currency:
Beginning
of
period
.............................................................................................
$
244
End
of
period
..................................................................................................
$
630
Supplemental
disclosure
of
cash
flow
information:
Reinvestment
of
dividends
and
distributions
...........................................................................
$
1,487
Notes
to
Financial
Statements
Principal
Real
Asset
Fund
September
30,
2025
(unaudited)
5
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.
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
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.
Notes
to
Financial
Statements
Principal
Real
Asset
Fund
September
30,
2025
(unaudited)
6
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
September
30,
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
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.
Principal
Real
Asset
Fund
Euro
6
.0%
2.
Significant
Accounting
Policies
(continued)
Notes
to
Financial
Statements
Principal
Real
Asset
Fund
September
30,
2025
(unaudited)
7
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
period
ended
September
30,
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
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,
including
disclosure
of
income
taxes
paid
by
jurisdiction.
The
ASU
is
effective
for
annual
periods
beginning
after
December
15,
2024
.
Management
does
not
expect
the
future
adoption
of
this
standard
to
have
a
material
impact
on
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
September
30,
2025
.
During
the
period
ended
September
30,
2025
,
the
Fund
did
not
borrow
against
the
line
of
credit.
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
period
 ended
September
30,
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
2.
Significant
Accounting
Policies
(continued)
Notes
to
Financial
Statements
Principal
Real
Asset
Fund
September
30,
2025
(unaudited)
8
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
September
30,
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
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
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Real
Asset
Fund
September
30,
2025
(unaudited)
9
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
September
30,
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
September
30,
2025,
the
Fund
had
unfunded
commitments
relating
to
potential
future
investments,
as
follows
(amounts
in
thousands):
*Unfunded
commitments
approximate
their
fair
values.
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.
Private
Investment
Fund
Unfunded
Commitment*
Cloud
Capital
Feeder,
LP
$
10,000
ACIP
Parallel
Fund
A,
LP
292
Blackstone
Infrastructure
Partners
F.2,
LP
4,500
Macquarie
Green
Energy
and
Climate
Opportunities
Fund,
SCSp
3,150
3.
Operating
Policies
(continued)
Notes
to
Financial
Statements
Principal
Real
Asset
Fund
September
30,
2025
(unaudited)
10
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.
The
following
is
a
summary
of
the
inputs
used
as
of
September
30,
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.
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
$
2,307
$
1,529
$
—
$
3,836
Communications
—
375
—
375
Consumer,
Cyclical
8
—
—
8
Consumer,
Non-cyclical
851
508
—
1,359
Energy
2,833
1,486
—
4,319
Financial
10,445
5,156
—
15,601
Industrial
2,068
2,013
—
4,081
Utilities
5,806
2,183
—
7,989
Investment
Companies*
16,039
—
—
16,039
Total
$
40,357
$
13,250
$
—
$
53,607
Investments
Using
NAV
as
practical
expedient
Private
Investment
Funds
110,085
Total
investments
in
securities
$
163,692
4.
Fair
Valuation
(continued)
Notes
to
Financial
Statements
Principal
Real
Asset
Fund
September
30,
2025
(unaudited)
11
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,
2026;
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.
Any
amounts
outstanding
at
the
end
of
the
period
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,
2026,
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:
Subject
to
applicable
expense
limits,
the
Fund
may
reimburse
the
Manager
for
expenses
incurred
during
the
current
fiscal
year
and
the
previous
two
fiscal
years.
All
organizational
expenses
of
the
Fund
will
be
borne
by
the
Fund.
As
of
September
30,
2025,
the
class
specific
reimbursements
subject
to
possible
future
recoupment
under
the
expense
limitation
agreement
were
as
follows
(amounts
in
thousands):
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.
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
period
ended
September
30,
2025,
sales
charges
retained
by
the
Distributor
were
less
than
$500.
Affiliated
Ownership
.
As
of
September
30,
2025,
Principal
Life
Insurance
Company
(an
affiliate
of
the
Manager)
owned
shares
of
the
Fund
as
follows
(amounts
of
shares
in
thousands):
Share
Class
Operating
Expense
Limit
Expiration
Class
A
1.39%
July
31,
2026
Class
Y
0.89
July
31,
2026
Institutional
1.09
July
31,
2026
Share
Class
Expiring
March
31,
2026
Expiring
March
31,
2027
Expiring
March
31,
2028
Class
A
$139
$37
$29
Class
Y
432
715
412
Institutional
103
68
32
Class
Y
Principal
Real
Asset
Fund
5,875
Notes
to
Financial
Statements
Principal
Real
Asset
Fund
September
30,
2025
(unaudited)
12
6.
Investment
Transactions
For
the
period
ended
September
30,
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
period
ended
September
30,
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.
8.
Federal
Tax
Information
Distributions
to
Shareholders.
The
federal
income
tax
character
of
distributions
paid
for
the
period
ended
September
30,
2025
and
year
ended
March
31,
2025,
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):
Purchases
Sales
Principal
Real
Asset
Fund
$
17,425
$
20,632
Repurchase
Offer
#1
Repurchase
Offer
#2
Commencement
Date
March
31,
2025
June
30,
2025
Repurchase
Request
Deadline
April
28,
2025
July
29,
2025
Repurchase
Pricing
Date
April
28,
2025
July
29,
2025
Amount
Repurchased
$
9,733
$
39
Shares
Repurchased
369
1
Percentage
of
Outstanding
Shares
Repurchased
5.97%
0.03%
Ordinary
Income
Long-Term
Capital
Gain*
September
30,
2025
March
31,
2025
September
30,
2025
March
31,
2025
Principal
Real
Asset
Fund
$
1,501
$
2,332
$
—
$
184
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
Notes
to
Financial
Statements
Principal
Real
Asset
Fund
September
30,
2025
(unaudited)
13
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
September
30,
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.
There
were
no
items
requiring
adjustment
of
the
financial
statements
or
additional
disclosure.
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
$
24,314
$
(8,261)
$
16,053
$
147,639
8.
Federal
Tax
Information
(continued)
Schedule
of
Investments
Principal
Real
Asset
Fund
September
30,
2025
(unaudited)
See
accompanying
notes.
14
INVESTMENT
COMPANIES
-
9
.80
%
Shares
Held
Value
(000's)
Exchange-Traded
Funds
-
9
.05
%
iShares
Global
Infrastructure
ETF
121,100‌
$
7,402‌
iShares
U.S.
Infrastructure
ETF
140,395‌
7,416‌
$
14,818‌
Money
Market
Funds
-
0
.75
%
Morgan
Stanley
Institutional
Liquidity
Funds
-
Government
Portfolio
-
Institutional
Class
4.05%
(a)
1,221,211‌
1,221‌
TOTAL
INVESTMENT
COMPANIES
$
16,039‌
PRIVATE
INVESTMENT
FUNDS
-
67
.25
%
Shares
Held
Value
(000's)
Agriculture
-
17
.78
%
Ceres
Farmland
Holdings,
LP
(b)
N/A
$
12,279‌
Hancock
Timberland
and
Farmland
Fund,
LP
(b)
N/A
10,997‌
UBS
AgriVest
Farmland
Fund
(b)
N/A
5,827‌
$
29,103‌
Energy
-
Alternate
Sources
-
19
.80
%
ACIP
Parallel
Fund
A,
LP
(b)
N/A
5,115‌
Blackstone
Infrastructure
Partners
F2,
LP
(b)
N/A
6,691‌
CBRE
Caledon
Global
Infrastructure
Fund
(International),
LP
(b)
N/A
11,328‌
IFM
Net
Zero
Infrastructure
Fund
(USD)
B,
SCSp
(b)
N/A
5,853‌
Macquarie
Green
Energy
and
Climate
Opportunities
Fund,
SCSp
(b)
N/A
3,419‌
$
32,406‌
Forest
Products
&
Paper
-
3
.52
%
BTG
Pactual
Open
Ended
Core
US
Timberland
Fund,
LP
(b)
N/A
5,759‌
Private
Equity
-
11
.35
%
GDIF
US
Hedged
Feeder
Fund,
LP
(b)
N/A
7,027‌
HarbourVest
Infrastructure
Income
Delaware
Parallel
Partnership,
LP
(b)
N/A
11,553‌
$
18,580‌
Real
Estate
-
11
.04
%
Brookfield
Senior
Mezzanine
Real
Estate
Finance
Fund,
LP
(b)
N/A
1,875‌
FDR
PELF
SCA,
SICAV-RAIF
(b)
N/A
6,158‌
PGIM
Real
Estate
US
Debt
Fund,
LP
(b)
N/A
5,048‌
UBS
Trumbull
Property
Growth
&
Income
Fund
(b)
N/A
4,995‌
$
18,076‌
Transportation
-
3
.76
%
Global
Transport
Income
Fund
Feeder
LLC,
LP
(b)
N/A
6,161‌
TOTAL
PRIVATE
INVESTMENT
FUNDS
$
110,085‌
COMMON
STOCKS
-
22
.95
%
Shares
Held
Value
(000's)
Agriculture
-
0
.14
%
Archer-Daniels-Midland
Co
1,671‌
$
100‌
Bunge
Global
SA
463‌
37‌
Darling
Ingredients
Inc
(c)
545‌
17‌
Wilmar
International
Ltd
35,800‌
79‌
$
233‌
Biotechnology
-
0
.10
%
Corteva
Inc
2,369‌
160‌
Building
Materials
-
0
.11
%
Louisiana-Pacific
Corp
213‌
19‌
Svenska
Cellulosa
AB
SCA
8,091‌
107‌
West
Fraser
Timber
Co
Ltd
772‌
52‌
$
178‌
Chemicals
-
0
.37
%
CF
Industries
Holdings
Inc
560‌
50‌
FMC
Corp
431‌
15‌
ICL
Group
Ltd
9,760‌
61‌
Mosaic
Co/The
1,094‌
38‌
Nutrien
Ltd
6,016‌
353‌
Yara
International
ASA
2,201‌
81‌
$
598‌
Commercial
Services
-
0
.49
%
Atlas
Arteria
Ltd
132,107‌
429‌
Motiva
Infraestrutura
de
Mobilidade
SA
133,292‌
372‌
$
801‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Consumer
Products
-
0
.03
%
Avery
Dennison
Corp
269‌
$
44‌
Electric
-
4
.10
%
Boralex
Inc
11,253‌
220‌
CenterPoint
Energy
Inc
13,280‌
515‌
CMS
Energy
Corp
6,859‌
502‌
DTE
Energy
Co
1,970‌
279‌
EDP
Renovaveis
SA
9,010‌
119‌
Elia
Group
SA/NV
3,423‌
395‌
Emera
Inc
8,147‌
391‌
Entergy
Corp
7,376‌
687‌
National
Grid
PLC
47,092‌
677‌
NextEra
Energy
Inc
15,551‌
1,174‌
Northwestern
Energy
Group
Inc
2,135‌
125‌
PG&E
Corp
27,424‌
414‌
Sempra
7,279‌
655‌
Xcel
Energy
Inc
6,891‌
556‌
$
6,709‌
Engineering
&
Construction
-
1
.08
%
Aeroports
de
Paris
SA
3,475‌
460‌
Beijing
Capital
International
Airport
Co
Ltd
(c)
564,000‌
201‌
Cellnex
Telecom
SA
(c),(d)
12,831‌
445‌
China
Tower
Corp
Ltd
(d)
155,600‌
230‌
Enav
SpA
(d)
47,427‌
241‌
Sarana
Menara
Nusantara
Tbk
PT
5,392,600‌
189‌
$
1,766‌
Food
-
0
.02
%
Ingredion
Inc
221‌
27‌
Forest
Products
&
Paper
-
0
.32
%
International
Paper
Co
1,822‌
85‌
Mondi
PLC
5,961‌
82‌
Oji
Holdings
Corp
12,900‌
71‌
Suzano
SA
ADR
9,491‌
89‌
UPM-Kymmene
Oyj
7,157‌
196‌
$
523‌
Gas
-
0
.20
%
ENN
Energy
Holdings
Ltd
40,600‌
335‌
Healthcare
-
Services
-
0
.06
%
Chartwell
Retirement
Residences
6,500‌
94‌
Housewares
-
0
.00
%
Scotts
Miracle-Gro
Co/The
149‌
8‌
Iron
&
Steel
-
0
.27
%
ArcelorMittal
SA
1,136‌
41‌
Fortescue
Ltd
4,255‌
53‌
Nippon
Steel
Corp
13,500‌
56‌
Novolipetsk
Steel
PJSC
(c)
36,800‌
—‌
Nucor
Corp
580‌
78‌
POSCO
Holdings
Inc
185‌
36‌
Reliance
Inc
134‌
38‌
Severstal
PAO
(c)
4,878‌
—‌
Steel
Dynamics
Inc
347‌
48‌
Vale
SA
ADR
9,078‌
99‌
$
449‌
Mining
-
1
.38
%
Agnico
Eagle
Mines
Ltd
1,275‌
215‌
Anglo
American
PLC
2,981‌
112‌
Anglogold
Ashanti
Plc
1,075‌
76‌
Antofagasta
PLC
867‌
32‌
Barrick
Mining
Corp
4,348‌
143‌
BHP
Group
Ltd
12,788‌
357‌
Cameco
Corp
689‌
58‌
China
Hongqiao
Group
Ltd
5,500‌
19‌
First
Quantum
Minerals
Ltd
(c)
1,699‌
38‌
Franco-Nevada
Corp
488‌
109‌
Freeport-McMoRan
Inc
3,631‌
142‌
Glencore
PLC
(c)
24,593‌
113‌
Gold
Fields
Ltd
ADR
2,272‌
95‌
Ivanhoe
Mines
Ltd
(c)
1,806‌
19‌
Kinross
Gold
Corp
3,094‌
77‌
Schedule
of
Investments
Principal
Real
Asset
Fund
September
30,
2025
(unaudited)
See
accompanying
notes.
15
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
Mining
(continued)
Newmont
Corp
2,808‌
$
237‌
Norsk
Hydro
ASA
3,329‌
23‌
Northern
Star
Resources
Ltd
3,486‌
54‌
Polyus
PJSC
(c)
4,070‌
—‌
Rio
Tinto
Ltd
933‌
75‌
Southern
Copper
Corp
225‌
27‌
Teck
Resources
Ltd
1,110‌
49‌
Wheaton
Precious
Metals
Corp
1,148‌
129‌
Zijin
Mining
Group
Co
Ltd
16,000‌
67‌
$
2,266‌
Oil
&
Gas
-
1
.34
%
BP
PLC
25,396‌
146‌
Canadian
Natural
Resources
Ltd
3,347‌
107‌
Cenovus
Energy
Inc
2,020‌
34‌
Chevron
Corp
1,316‌
204‌
ConocoPhillips
863‌
82‌
Coterra
Energy
Inc
521‌
12‌
Devon
Energy
Corp
439‌
15‌
Diamondback
Energy
Inc
128‌
18‌
Ecopetrol
SA
ADR
389‌
4‌
Eni
SpA
3,286‌
58‌
EOG
Resources
Inc
378‌
42‌
EQT
Corp
409‌
22‌
Equinor
ASA
1,238‌
30‌
Exxon
Mobil
Corp
2,968‌
335‌
Imperial
Oil
Ltd
250‌
23‌
Marathon
Petroleum
Corp
210‌
40‌
Occidental
Petroleum
Corp
487‌
23‌
Petroleo
Brasileiro
SA
-
Petrobras
ADR
2,944‌
37‌
Phillips
66
279‌
38‌
Reliance
Industries
Ltd
(d)
2,747‌
168‌
Repsol
SA
1,832‌
33‌
Shell
PLC
9,530‌
340‌
Suncor
Energy
Inc
1,955‌
82‌
TotalEnergies
SE
3,621‌
221‌
Valero
Energy
Corp
217‌
37‌
Woodside
Energy
Group
Ltd
3,005‌
45‌
$
2,196‌
Oil
&
Gas
Services
-
0
.05
%
Baker
Hughes
Co
678‌
33‌
Halliburton
Co
588‌
15‌
Schlumberger
NV
1,025‌
35‌
$
83‌
Packaging
&
Containers
-
0
.23
%
Amcor
PLC
7,909‌
65‌
Graphic
Packaging
Holding
Co
1,041‌
20‌
Packaging
Corp
of
America
308‌
67‌
Sealed
Air
Corp
507‌
18‌
SIG
Group
AG
4,646‌
48‌
Smurfit
WestRock
PLC
1,711‌
73‌
Stora
Enso
Oyj
8,368‌
92‌
$
383‌
Pipelines
-
1
.25
%
APA
Group
75,870‌
445‌
DT
Midstream
Inc
2,488‌
281‌
Gibson
Energy
Inc
24,400‌
454‌
Williams
Cos
Inc/The
13,576‌
860‌
$
2,040‌
Real
Estate
-
1
.08
%
CTP
NV
(d)
4,600‌
103‌
Fastighets
AB
Balder
(c)
14,600‌
105‌
Mitsui
Fudosan
Co
Ltd
67,000‌
729‌
Qualitas
Ltd
44,887‌
100‌
Sun
Hung
Kai
Properties
Ltd
22,000‌
263‌
Swire
Properties
Ltd
34,700‌
99‌
Vonovia
SE
11,836‌
370‌
$
1,769‌
COMMON
STOCKS
(continued)
Shares
Held
Value
(000’s)
REITs
-
8
.45
%
Agree
Realty
Corp
4,400‌
$
312‌
American
Healthcare
REIT
Inc
14,499‌
609‌
American
Homes
4
Rent
12,288‌
409‌
American
Tower
Corp
4,170‌
802‌
AvalonBay
Communities
Inc
2,400‌
464‌
Boardwalk
Real
Estate
Investment
Trust
1,500‌
74‌
CapitaLand
Integrated
Commercial
Trust
157,995‌
281‌
COPT
Defense
Properties
5,300‌
154‌
Cousins
Properties
Inc
6,495‌
188‌
Crown
Castle
Inc
6,204‌
599‌
Digital
Realty
Trust
Inc
2,023‌
350‌
Equinix
Inc
1,174‌
919‌
Equity
LifeStyle
Properties
Inc
1,200‌
73‌
Equity
Residential
3,900‌
252‌
Essex
Property
Trust
Inc
800‌
214‌
Extra
Space
Storage
Inc
3,105‌
438‌
Gaming
and
Leisure
Properties
Inc
3,815‌
178‌
Goodman
Group
24,827‌
538‌
InvenTrust
Properties
Corp
6,254‌
179‌
Japan
Hotel
REIT
Investment
Corp
162‌
98‌
Keppel
DC
REIT
88,200‌
163‌
Keppel
DC
REIT
-
Rights
(c)
6,376‌
1‌
Klepierre
SA
11,870‌
463‌
Link
REIT
35,024‌
180‌
Merlin
Properties
Socimi
SA
8,816‌
133‌
Mitsui
Fudosan
Accommodations
Fund
Inc
170‌
152‌
Nippon
Building
Fund
Inc
300‌
283‌
Nippon
Prologis
REIT
Inc
178‌
104‌
Prologis
Inc
5,421‌
621‌
Prologis
Property
Mexico
SA
de
CV
18,600‌
76‌
Regency
Centers
Corp
2,700‌
197‌
Rexford
Industrial
Realty
Inc
2,292‌
94‌
Ryman
Hospitality
Properties
Inc
3,100‌
278‌
Sabra
Health
Care
REIT
Inc
8,405‌
157‌
Safestore
Holdings
PLC
12,273‌
109‌
Segro
PLC
7,557‌
67‌
Sekisui
House
Reit
Inc
191‌
103‌
Simon
Property
Group
Inc
1,050‌
197‌
Stockland
51,195‌
207‌
Unibail-Rodamco-Westfield
(c)
2,300‌
242‌
UNITE
Group
PLC/The
27,212‌
263‌
Ventas
Inc
8,183‌
573‌
VICI
Properties
Inc
15,475‌
505‌
Vornado
Realty
Trust
4,882‌
198‌
Welltower
Inc
7,147‌
1,273‌
Weyerhaeuser
Co
2,503‌
62‌
$
13,832‌
Telecommunications
-
0
.23
%
Indus
Towers
Ltd
(c)
54,460‌
210‌
NEXTDC
Ltd
(c)
14,700‌
165‌
$
375‌
Transportation
-
1
.07
%
Canadian
National
Railway
Co
2,200‌
207‌
CSX
Corp
18,448‌
655‌
Norfolk
Southern
Corp
428‌
129‌
Rumo
SA
101,304‌
302‌
Union
Pacific
Corp
1,950‌
461‌
$
1,754‌
Water
-
0
.58
%
Cia
de
Saneamento
Basico
do
Estado
de
Sao
Paulo
SABESP
11,600‌
288‌
Guangdong
Investment
Ltd
318,513‌
290‌
Severn
Trent
PLC
10,535‌
367‌
$
945‌
TOTAL
COMMON
STOCKS
$
37,568‌
Total
Investments
$
163,692‌
Other
Assets
and
Liabilities
-  0.00%
6‌
TOTAL
NET
ASSETS
-
100.00%
$
163,698‌
Schedule
of
Investments
Principal
Real
Asset
Fund
September
30,
2025
(unaudited)
See
accompanying
notes.
16
(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
$1,187
or
0.73%
of
net
assets.
Portfolio
Summary
Sector
Percent
Financial
31
.92‌
%
Energy
22
.44‌
%
Consumer,
Non-cyclical
18
.62‌
%
Exchange-Traded
Funds
9
.05‌
%
Industrial
6
.25‌
%
Utilities
4
.88‌
%
Materials
3
.52‌
%
Basic
Materials
2
.34‌
%
Money
Market
Funds
0
.75‌
%
Communications
0
.23‌
%
Consumer,
Cyclical
0
.00‌
%
Other
Assets
and
Liabilities
0
.00‌
%
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
-
09/25/2025
$
6,458‌
$
5,115‌
N/A
3.12%
Blackstone
Infrastructure
Partners
F2,
LP
(b)
09/27/2024
6,000‌
6,691‌
90
4.09%
Brookfield
Senior
Mezzanine
Real
Estate
Finance
Fund,
LP
(c)
03/31/2022
5,000‌
1,875‌
N/A
1.15%
BTG
Pactual
Open
Ended
Core
US
Timberland
Fund,
LP
(d)
07/01/2019
-
12/30/2021
4,697‌
5,759‌
90
3.52%
CBRE
Caledon
Global
Infrastructure
Fund
(International),
LP
(e)
07/16/2021
-
06/27/2024
10,959‌
11,328‌
N/A
6.92%
Ceres
Farmland
Holdings,
LP
(f)
11/06/2019,
02/05/2021
7,000‌
12,279‌
N/A
7.50%
FDR
PELF
SCA,
SICAV-RAIF
(g)
12/01/2022
6,610‌
6,158‌
90
3.76%
GDIF
US
Hedged
Feeder
Fund,
LP
(h)
04/23/2021
-
08/17/2022
6,115‌
7,027‌
N/A
4.29%
Global
Transport
Income
Fund
Feeder
LLC,
LP
(i)
08/01/2024
6,000‌
6,161‌
45
3.76%
Hancock
Timberland
and
Farmland
Fund,
LP
(j)
08/12/2020
-
04/20/2023
10,556‌
10,997‌
N/A
6.72%
HarbourVest
Infrastructure
Income
Delaware
Parallel
Partnership,
LP
(k)
06/27/2022
8,000‌
11,553‌
90
7.06%
IFM
Net
Zero
Infrastructure
Fund
(USD)
B,
SCSp
(l)
02/29/2024
6,000‌
5,853‌
90
3.58%
Macquarie
Green
Energy
and
Climate
Opportunities
Fund,
SCSp
(m)
08/30/2024
2,898‌
3,419‌
90
2.09%
PGIM
Real
Estate
US
Debt
Fund,
LP
(n)
04/30/2021,
06/30/2021
5,315‌
5,048‌
N/A
3.08%
UBS
AgriVest
Farmland
Fund
(o)
07/01/2020
-
01/03/2023
5,147‌
5,827‌
60
3.56%
UBS
Trumbull
Property
Growth
&
Income
Fund
(p)
07/01/2020
-
12/30/2021
6,092‌
4,995‌
60
3.05%
Total
$
110,085‌
67.25%
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)
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.
(e)
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.
(f)
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.
(g)
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.
(h)
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.
(i)
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.
(j)
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.
(k)
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.
Schedule
of
Investments
Principal
Real
Asset
Fund
September
30,
2025
(unaudited)
See
accompanying
notes.
17
(l)
This
feeder
fund
represents
an
indirect
ownership
of
the
IFM
Core
Energy
Transition
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.
(m)
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.
(n)
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.
(o)
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.
(p)
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
(unaudited)
See
accompanying
notes.
18
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
September
30,
2025(c)
$
25.84‌
$
0.33‌
$
1.12‌
$
1.45‌
(
$
0.26‌)
$
–‌
(
$
0.26‌)
$
27
.03‌
March
31,
2025
25.41‌
0.69‌
0.14‌
0.83‌
(
0.37‌)
(
0.03‌)
(
0.40‌)
25.84‌
March
31,
2024
25.40‌
0
.42‌
0.06‌
0.48‌
(
0.24‌)
(
0.23‌)
(
0.47‌)
25.41‌
March
31,
2023
28.09‌
0.63‌
(
1.54‌)
(
0.91‌)
(
0.41‌)
(
1.37‌)
(
1.78‌)
25.40‌
March
31,
2022
26.27‌
0.33‌
3.34‌
3.67‌
(
0.37‌)
(
1.48‌)
(
1.85‌)
28.09‌
March
31,
2021
19.35‌
0.49‌
7.18‌
7.67‌
(
0.52‌)
(
0.23‌)
(
0
.75‌)
26.27‌
Class
Y
shares
September
30,
2025(c)
26.31‌
0.46‌
1.08‌
1.54‌
(
0.26‌)
–‌
(
0.26‌)
27.59‌
March
31,
2025
25.77‌
0.85‌
0.12‌
0.97‌
(
0.40‌)
(
0.03‌)
(
0.43‌)
26.31‌
March
31,
2024
25.68‌
0.55‌
0.07‌
0.62‌
(
0.30‌)
(
0.23‌)
(
0.53‌)
25.77‌
March
31,
2023
28.31‌
0.76‌
(
1.54‌)
(
0.78‌)
(
0.48‌)
(
1.37‌)
(
1.85‌)
25.68‌
March
31,
2022
26.42‌
0.47‌
3.36‌
3.83‌
(
0
.42‌)
(
1.52‌)
(
1.94‌)
28.31‌
March
31,
2021
19.39‌
0.62‌
7.20‌
7.82‌
(
0.55‌)
(
0.24‌)
(
0.79‌)
26.42‌
Institutional
shares
September
30,
2025(c)
26.00‌
0.19‌
1.30‌
1.49‌
(
0.26‌)
–‌
(
0.26‌)
27.23‌
March
31,
2025
25.51‌
0.64‌
0.28‌
0.92‌
(
0.40‌)
(
0.03‌)
(
0.43‌
)
26.00‌
March
31,
2024
25.48‌
0.50‌
0.06‌
0.56‌
(
0.30‌)
(
0.23‌)
(
0.53‌)
25.51‌
March
31,
2023
28.15‌
0.64‌
(
1
.46‌)
(
0.82‌)
(
0.48‌)
(
1.37‌)
(
1.85‌)
25.48‌
March
31,
2022
26.33‌
0.42‌
3.33‌
3.75‌
(
0.41‌)
(
1.52‌)
(
1.93‌)
28.15‌
March
31,
2021
19.36‌
0.56‌
7.20‌
7.76‌
(
0.55‌)
(
0.24‌)
(
0.79‌)
26.33‌
Financial
Highlights
(Continued)
(unaudited)
See
accompanying
notes.
19
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
5.06‌
%
(d),(e),(f)
$
523‌
1.43‌
%
(g),(h)
1.39‌
%
(g),(h)
2.54‌
%
(g)
22.8‌
%
(g)
3.28‌
(e),(i),(j)
833‌
1.43‌
(h)
1.39‌
(h)
2.69‌
31.5‌
2.30‌
(e),(i),(k)
930‌
1.48‌
(h)
1.44‌
(h)
1.68‌
32.0‌
(2.13‌)
(e),(i),(l)
754‌
1.70‌
(h)
1.66‌
(h)
2.41‌
39.8‌
12.58‌
(e),(i),(m)
372‌
1.91‌
(h)
1.88‌
(h)
1.19‌
45.4‌
39.63‌
(e),(i)
276‌
1.67‌
(h)
N/A‌(h)
2.11‌
56.0‌
5.27‌
(d),(f),(i)
162,102‌
0.93‌
(g),(h)
0.89‌
(g),(h)
3.44‌
(g)
22.8‌
(g)
3.82‌
(i),(j)
162,159‌
0.93‌
(h)
0.89‌
(h)
3.27‌
31.5‌
2.78‌
(i),(k)
135,552‌
0.98‌
(h)
0.94‌
(h)
2.19‌
32.0‌
(1.62‌)
(i),(l)
148,223‌
1.24‌
(h)
1.20‌
(h)
2.84‌
39.8‌
13.13‌
(i),(m)
187,063‌
1.41‌
(h)
1.38‌
(h)
1.69‌
45.4‌
40.36‌
(i)
162,855‌
1.17‌
(h)
N/A‌(h)
2.61‌
56.0‌
5.19‌
(d),(f)
1,073‌
1.13‌
(g),(h)
1.09‌
(g),(h)
1.43‌
(g)
22.8‌
(g)
3.62‌
(i),(j)
1,345‌
1.13‌
(h)
1.09‌
(h)
2.49‌
31.5‌
2.60‌
(i),(k)
10,378‌
1.18‌
(h)
1.14‌
(h)
1.99‌
32.0‌
(1.82‌)
(i),(l)
10,753‌
1.30‌
(h)
1.26‌
(h)
2.48‌
39.8‌
12.93‌
(i),(m)
627‌
1.63‌
(h)
1.60‌
(h)
1.54‌
45.4‌
40.06‌
(i)
277‌
1.37‌
(h)
N/A‌(h)
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)
Six
months
ended
September
30,
2025.
(d)
Total
return
amounts
have
not
been
annualized.
(e)
Total
return
is
calculated
without
the
front-end
sales
charge
or
contingent
deferred
sales
charge,
if
applicable.
(f)
Total
returns
calculated
using
the
reported
net
asset
values
as
of
September
30,
2025
are
5.63%,
5.87%,
and
5.75%
for
Class
A,
Class
Y,
and
Institutional,
respectively.
(g)
Computed
on
an
annualized
basis.
(h)
Subject
to
Manager's
contractual
expense
limit.
(i)
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.
(j)
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.
(k)
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.
(l)
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.
(m)
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.
Shareholder
Expense
Example
Principal
Real
Asset
Fund
September
30,
2025
(unaudited)
20
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
April
1,
2025
to
September
30,
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
April
1,
2025
Ending
Account
Value
September
30,
2025
Expenses
Paid
During Period
April
1,
2025 to
September
30,
2025
(a)
Beginning
Account
Value
April
1,
2025
Ending
Account
Value
September
30,
2025 
Expenses
Paid
During Period
April
1,
2025 to
September
30,
2025
(a)
Annualized
Expense
Ratio
Principal
Real
Asset
Fund
Class
A
$
1,000.00‌
$
1,050.61‌
$
7.35‌
$
1,000.00‌
$
1,017.90‌
$
7.23‌
1.43‌
%
Class
Y
1,000.00‌
1,052.75‌
4.79‌
1,000
.00‌
1,020.41‌
4.71‌
0.93‌
Institutional
1,000.00‌
1,051.85‌
5.81‌
1,000.00‌
1,019.40‌
5.72‌
1.13‌
Principal
Real
Asset
Fund
(Excluding
Interest
Expense
and
Fees)
Class
A
1,000.00‌
1,050.61‌
7.15‌
1,000.00‌
1,018.10‌
7.03‌
1.39‌
Class
Y
1,000.00‌
1,052.75‌
4.58‌
1,000
.00‌
1,020.61‌
4.51‌
0.89‌
Institutional
1,000.00‌
1,051.85‌
5.61‌
1,000.00‌
1,019.60‌
5.52‌
1.09‌
(a)
Expenses
are
equal
to
a
fund's
annualized
expense
ratio
multiplied
by
the
average
account
value
over
the
period,
multiplied
by
183/365
(to
reflect
the
one-half
year
period).
21
BOARD
CONSIDERATION
OF
INVESTMENT
ADVISORY
CONTRACTS
Approval
of
Management
Agreement
and
Sub-Advisory
Agreement
At
a
meeting
held
on
September
16,
2025
(the
“Meeting”),
the
Board
of
Trustees
(the
“Board”)
of
Principal
Real
Asset
(the
“Fund”)
considered
the
approval
of
the
renewal
of:
(
i
)
the
Management
Agreement
between
Principal
Global
Investors,
LLC
(the
“Manager”)
and
the
Fund
(the
“Management
Agreement”)
and
(ii)
the
Amended
and
Restated
Sub-Advisory
Agreement
between
Principal
Real
Estate
Investors,
LLC
(the
“Sub-Adviser”)
and
the
Manager
(the
“Sub-Advisory
Agreement”).
In
connection
with
the
Board’s
consideration
of
the
Management
Agreement
and
the
Sub-Advisory
Agreement,
the
Board
received
written
materials
in
advance
of
the
Meeting,
which
included
information
regarding:
(
i
)
the
nature,
extent,
and
quality
of
services
to
be
provided
to
the
Fund
by
the
Manager
and
the
Sub-Adviser;
(ii)
a
description
of
the
Manager’s
and
the
Sub-Adviser’s
investment
management
and
other
personnel;
(iii)
an
overview
of
the
Manager’s
and
the
Sub-Adviser’s
respective
operations
and
financial
condition;
(iv)
a
comparison
of
the
Fund’s
management
fee
and
overall
expenses
with
those
of
comparable
funds;
(v)
the
level
of
profitability
from
the
Manager’s
and
the
Sub-
Adviser’s
fund-related
operations;
(vi)
the
Manager’s
and
the
Sub-Adviser’s
compliance
policies
and
procedures,
including
policies
and
procedures
for
business
continuity
and
information
security
and
(vii)
information
regarding
the
performance
record
of
the
Fund
as
compared
to
other
comparable
funds.
Throughout
the
process,
including
at
the
Meeting,
the
Board
had
numerous
opportunities
to
ask
questions
of
and
request
additional
materials
from
the
Manager
and
the
Sub-Adviser.
During
the
Meeting,
the
Board
was
advised
by,
and
met
in
executive
session
with,
the
Board’s
independent
legal
counsel,
and
received
a
memorandum
from
such
independent
counsel
regarding
their
responsibilities
under
applicable
law.
Matters
considered
by
the
Board
in
connection
with
its
approval
of
the
Management
Agreement
and
the
Sub-Advisory
Agreement
included,
among
others,
the
following:
Nature,
Extent
and
Quality
of
Service
.
In
considering
the
nature,
extent
and
quality
of
services
to
be
provided
by
the
Manager
under
the
Management
Agreement,
including
accounting
and
administrative
services
as
applicable,
the
Board
reviewed
materials
provided
by
the
Manager,
including:
a
description
of
the
manner
in
which
investment
decisions
are
made
and
executed;
an
overview
of
the
personnel
that
perform
services
for
the
Fund
and
their
background
and
experience;
a
review
of
the
financial
condition
of
the
Manager;
information
regarding
risk
management
processes
and
liquidity
management;
a
description
of
the
Manager’s
brokerage
practices
(including
any
soft
dollar
arrangements);
the
compliance
policies
and
procedures
of
the
Manager,
including
its
business
continuity
and
cybersecurity
policies
and
a
code
of
ethics
that
contained
provisions
reasonably
necessary
to
prevent
Access
Persons,
as
that
term
is
defined
in
Rule
17j-1
under
the
1940
Act,
from
engaging
in
conduct
prohibited
by
Rule
17j-1(b).
The
Board
considered
the
experience
and
skills
of
senior
management
that
would
lead
the
Fund’s
operations,
the
experience
and
skills
of
the
personnel
that
would
perform
the
functions
under
the
Management
Agreement
and
the
resources
that
would
be
made
available
to
such
personnel,
the
ability
of
the
Manager
to
attract
and
retain
high-quality
personnel
and
the
organizational
depth
and
stability
of
the
Manager.
The
Board
also
considered
that
the
Manager
had
delegated
day-to-day
portfolio
management
responsibility
to
the
Sub-Adviser,
an
affiliate
of
the
Manager.
The
Board
noted
that
the
Manager’s
process
for
the
selection
of
sub-advisors
emphasizes
the
selection
of
Principal-affiliated
sub-advisors
that
are
determined
to
be
qualified
under
the
Manager’s
due
diligence
process,
but
that
the
Manager
will
select
an
unaffiliated
sub-advisor
to
manage
all
or
a
portion
of
the
Fund’s
investment
portfolio
when
deemed
necessary
or
appropriate
based
upon
a
consideration
of
the
Fund’s
investment
mandate
and
available
expertise
and
resources
within
the
Principal
organization.
The
Board
considered
the
due
diligence
process
developed
by
the
Manager
for
purposes
of
selecting
a
qualified
sub-advisor
for
the
Fund.
The
Board
considered
the
Manager’s
due
diligence
process
for
monitoring
and
replacing
sub-advisors
and
for
monitoring
the
investment
performance
of
sub-advisors.
The
Board
concluded
that
appropriate
resources
were
provided
under
the
Management
Agreement,
that
the
Manager
had
sufficient
quality
and
depth
of
personnel,
resources,
investment
methods,
and
compliance
policies
and
procedures
to
perform
its
duties
under
the
Management
Agreement
and
that
the
nature,
overall
quality
and
extent
of
the
services
provided
by
the
Manager
to
the
Fund
were
satisfactory
and
reliable.
22
In
considering
the
nature,
extent
and
quality
of
services
to
be
provided
by
the
Sub-Adviser
with
respect
to
the
Fund
under
the
Sub-Advisory
Agreement,
the
Board
reviewed
materials
provided
by
the
Sub-Adviser,
including:
an
overview
of
the
personnel
that
perform
services
for
the
Fund
and
their
background
and
experience;
a
summary
of
the
financial
condition
of
the
Sub-Adviser;
information
regarding
risk
management
processes
and
liquidity
management;
a
description
of
the
Sub-Adviser’s
brokerage
practices
(including
any
soft
dollar
arrangements);
information
regarding
the
Sub-Adviser’s
compliance
policies
and
procedures,
including
its
business
continuity
and
cybersecurity
policies
and
a
code
of
ethics
that
contained
provisions
reasonably
necessary
to
prevent
Access
Persons,
as
that
term
is
defined
in
Rule
17j-1
under
the
1940
Act,
from
engaging
in
conduct
prohibited
by
Rule
17j-1(b).
The
Board
concluded
that
the
Sub-Adviser
had
sufficient
quality
and
depth
of
personnel,
resources,
investment
methods
and
compliance
policies
and
procedures
to
perform
its
duties
under
the
Sub-Advisory
Agreement
and
that
the
nature,
overall
quality
and
extent
of
the
services
provided
by
the
Sub-Adviser
to
the
Fund
were
satisfactory
and
reliable.
Performance.
The
Board
considered,
among
other
performance
data,
the
performance
of
the
Fund
for
the
one-year,
three-year,
five-year
and
since
inception
periods
ended
June
30,
2025,
as
compared
to
a
comparable
fund
provided
by
the
Manager.
The
Board
also
took
into
account
the
Manager’s
discussion
of
the
Fund’s
performance.
The
Board
concluded
that
the
Fund’s
performance
was
satisfactory.
Fees
and
Expenses
.
The
Board
reviewed
information
provided
by
Broadridge
,
an
independent
third-party
data
provider,
with
respect
to
the
actual
management
fees
and
actual
total
expenses
for
the
Fund
as
compared
to
those
for
a
peer
group
comprised
of
comparable
funds
identified
by
Broadridge
.
The
Board
considered
that
the
Fund’s
actual
management
fee
and
actual
total
expenses
were
lower
than
the
peer
group’s
median.
With
respect
to
the
sub-advisory
fee,
the
Board
considered
that
the
Fund
pays
a
management
fee
to
the
Manager
and
that,
in
turn,
the
Manager
pays
a
portion
of
its
management
fee
to
the
Sub-Adviser.
The
Board
took
into
account
that
the
Manager
had
agreed
to
reimburse
expenses
(excluding
interest
expense,
expenses
related
to
fund
investments,
acquired
fund
fees
and
expenses,
and
tax
reclaim
recovery
expenses
and
other
extraordinary
expenses)
to
limit
total
operating
expenses
to
1.39%
on
Class
A
shares,
1.09%
on
Institutional
Class
shares,
and
0.89%
on
Class
Y
shares.
The
Board
concluded
that
the
Fund’s
management
fee
and
sub-advisory
fee
were
not
unreasonable.
Profitability
.
The
Board
considered
the
profitability
of
each
of
the
Manager
and
the
Sub-Adviser
with
respect
to
the
Fund
and
whether
the
profits
were
reasonable
in
light
of
the
services
provided
by
the
Manager
and
the
Sub-Adviser.
The
Board
reviewed
profitability
analysis
prepared
by
the
Manager
and
considered
the
total
profits,
if
any,
of
the
Manager
from
its
relationship
with
the
Fund.
The
Board
considered
the
profitability
of
the
Sub-Adviser,
an
affiliate
of
the
Manager,
in
conjunction
with
its
review
of
the
Manager’s
profitability.
The
Board
concluded
that
the
profitability,
if
any,
of
each
of
the
Manager
and
the
Sub-Adviser
from
its
respective
relationship
with
the
Fund
was
not
excessive.
Economies
of
Scale
.
The
Board
considered
whether
there
are
economies
of
scale
with
respect
to
the
management
of
the
Fund
and
whether
the
Fund
benefits
from
any
such
economies
of
scale.
The
Board
noted
management’s
explanation
of
efficiencies
in
the
Manager’s
cost
structure.
The
Board
concluded
that
at
the
Fund’s
current
asset
levels,
economies
of
scale
were
not
a
consideration
at
this
time
but
that
the
Board
would
consider
whether
economies
of
scale
exist
in
the
future.
Other
Benefits.
The
Board
also
considered
the
character
and
amount
of
other
incidental
benefits
received
by
the
Manager,
the
Sub-Adviser
and
their
affiliates
from
their
relationships
with
the
Fund.
The
Board
considered
as
a
part
of
this
analysis,
the
brokerage
practices,
soft
dollar
practices
and
use
of
research
payment
accounts
by
the
Manager
and
the
Sub-Adviser.
The
Board
concluded
that
the
incidental
benefits
received
by
the
Manager,
the
Sub-Adviser
and
their
affiliates
from
their
relationships
with
the
Fund
were
appropriate.
Conclusion
.
The
Board,
having
requested
and
received
such
information
from
each
of
the
Manager
and
the
Sub-Adviser
as
it
believed
reasonably
necessary
to
evaluate
the
terms
of
the
Management
Agreement
and
the
Sub-Advisory
Agreement
and
having
been
advised
by
independent
counsel
that
it
had
appropriately
considered
and
weighed
all
relevant
factors,
determined
that
the
approval
of
each
of
the
Management
Agreement
and
the
Sub-Advisory
Agreement
for
an
additional
one-year
term
was
in
the
best
interests
of
the
Fund
and
its
shareholders.
In
considering
the
renewal
of
the
Management
Agreement
and
the
Sub-Advisory
Agreement,
the
Board
considered
a
variety
of
factors,
including
those
discussed
above,
and
also
considered
other
factors
(including
conditions
and
trends
prevailing
generally
in
the
economy,
the
securities
markets,
and
the
industry).
The
Board
did
not
identify
any
one
factor
as
determinative,
and
each
Board
Member
may
have
weighed
each
factor
differently.
23
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
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
2
None
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
Managing
Director
(2008-2021)
24
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
Assistant
General
Counsel
(since
2025)
Counsel
(since
2021-2025)
Transamerica
Tax
Counsel
(2016-2021)
Megan
Hoffmann
Principal
Financial
Group*
Vice
President
and
Treasurer
Des
Moines,
IA
50392
1979
Vice
President
and
Controller
(2021-2025)
Senior
Director
–
Fund
Accounting
and
Administration
(since
2025)
Senior
Director
–
Fund
Administration
(2024)
Director
–
Accounting
(2020-2024)
Mandy
L.
Huebbe
Principal
Financial
Group*
Assistant
Secretary
Des
Moines,
IA
50392
1982
Funds
Board
Liaison
(since
2024)
Legal
Production
Assistant
(2015-2021,
2021-2024)
Hy-Vee
Corporate
Executive
Administration
Assistant
(2021-2021)
Laura
B.
Latham
Principal
Financial
Group*
Counsel
and
Assistant
Secretary
Des
Moines,
IA
50392
1986
Assistant
Counsel
and
Assistant
Secretary
(2018-
2023)
Assistant
General
Counsel
(since
2025)
Counsel
(2018-2025)
Ann
Meiners
Principal
Financial
Group*
Vice
President
and
Assistant
Treasurer
Des
Moines,
IA
50392
1977
Vice
President
and
Assistant
Controller
(2025)
Director
–
Fund
Accounting
(since
2024)
Assistant
Director
–
Fund
Accounting
(2017-2024)
David
P.
Michalik
Principal
Financial
Group*
Counsel
and
Assistant
Secretary
Des
Moines,
IA
50392
1991
Counsel
(since
2025)
The
Northern
Trust
Company
Second
Vice
President
(2019-2025)
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
Treasurer
Des
Moines,
IA
50392
1983
Vice
President
and
Assistant
Controller
(2021-2025)
Senior
Director
–
Fund
Tax
(since
2024)
Director
–
Accounting
(2019-2024)
Deanna
Y.
Pellack
Principal
Financial
Group*
Counsel
and
Assistant
Secretary
Des
Moines,
IA
50392
1987
Assistant
Counsel
and
Assistant
Secretary
(2022-
2023)
Counsel
(since
2022)
The
Northern
Trust
Company
Vice
President
(2019-2022)
25
*
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
Name,
Position
Held
with
the
Fund
Complex,
Address,
and
Year
of
Birth
Principal
Occupation(s)
During
past
5
years
Sara
L.
Reece
Principal
Financial
Group*
Vice
President
and
Chief
Operating
Officer
Des
Moines,
IA
50392
1975
Vice
President
and
Controller
(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)
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
(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
(2019-
2023)
Assistant
General
Counsel
(since
2023)
Counsel
(2019-2023)
Jared
A.
Yepsen
Principal
Financial
Group*
Tax
Counsel
Des
Moines,
IA
50392
1981
Assistant
Tax
Counsel
(2017-2025)
Assistant
General
Counsel
(since
2023)
Counsel
(2015-2023)
26
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,
2025
(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
.
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.
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.
|
INF100SAR-06
|
09/2025
|
4312584
ITEM 2 – CODE OF ETHICS
 
Not applicable to semi-annual reports.
 
ITEM 3 – AUDIT COMMITTEE FINANCIAL EXPERT
 
Not applicable to semi-annual reports.
 
ITEM 4 – PRINCIPAL ACCOUNTANT FEES AND SERVICES
 
Not applicable to semi-annual reports.
 
ITEM 5 – AUDIT COMMITTEE OF LISTED REGISTRANTS
 
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
 
Not applicable to semi-annual reports.
 
ITEM 13 – PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES
 
Not applicable to semi-annual reports.
 
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 – Not applicable to semi-annual reports.
 
(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
11/18/2025
 
 
 
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
11/18/2025
 
 
 
By
/s/ Michael Scholten
 
              Michael Scholten, Chief Financial Officer (Principal Financial Officer)
 
Date
11/17/2025