Principal Global Investors, an asset management firm with approximately $442.4 billion in client assets, has launched its first interval fund, the Principal Diversified Select Real Asset (DSRA) fund.
Interval funds are continuously offered registered closed-end funds that provide periodic liquidity to investors, generally by conducting quarterly repurchase offers of no less than 5 percent of the fund’s outstanding shares at net asset value.
The fund plans to invest at least 80 percent of its net assets in real assets and real asset companies, including real estate, agriculture, infrastructure, energy, natural resources, and timber. The fund may also invest in real estate investment trusts, commercial mortgage-backed securities, and other securitized products.
The Principal Diversified Select Real Asset fund is comprised of up to $250 million in Class A, Class Y, and Institutional Class shares (Ticker: PDSRX) that are initially priced at $25.00 each.
Class A shares will be priced at the current NAV and have a maximum sales load of 5.75 percent, while Institutional Class shares and Class Y shares are priced at the current NAV with no sales load.
For Class A shares, the maximum sales load is 5.75 percent for purchases under $100,000; 4.75 percent for purchases of $100,000 to under $250,000; 3.75 percent for purchases of $250,000 to under $500,000; 2.50 percent for $500,000 to under $1 million; and 0.00%, for purchases of $1 million or more.
The minimum initial investment per investor is $100,000 for Institutional Class and Class Y Shares, and $25,000 for Class A Shares.
“This launch reflects Principal’s commitment to meeting growing client interest and demand for products that offer access and exposure to diversifying private assets,” said Mike Beer, executive director of Principal Funds. “Throughout 2019, we have encouraged clients and investors to reevaluate risk within their portfolios. Offerings like DSRA are designed to help investors address market uncertainty and volatility.”
Principal Funds Distributor Inc. serves as the distributor.
Principal Global Investors manages approximately $442.4 billion in assets on behalf of more than 800 institutional clients located in 80 countries, as well as retirement plans and individual clients, as of March 31, 2019.