The company also has reduced the level at which investors can purchase Principal fixed-income funds without an up-front sales charge to $500,000 from $1,000,000, according to a press release. In addition, the contingent deferred sales charge (CDSC) holding period on those purchases has been shortened from 18 months to 12 months.
“We understand the market’s current downward trend may be troubling to investors, especially those nearing retirement,” said Nora Everett, president of Principal Funds, in the release. “Fixed-income investing may be an attractive option in this environment, and we want to make it as easy and cost-effective as possible for sidelined investors to re-enter the market.”
Principal Funds offers many fixed-income funds, including:
- Principal High Yield Fund (CPHYX)
- Principal Preferred Securities Fund (PPSAX)
- Principal Income Fund (CMPIX)
- Principal Mortgage Securities Fund (CMPGX)
- Principal Short-Term Income Fund (SRHQX).
More information about the reduction in fixed-income sales charges is available here.