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Principal Diversified Real Asset A PRDAX Fund Analysis

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| Medalist Rating as of | See Principal Investment Hub

Morningstar’s Analysis PRDAX

Will PRDAX outperform in future?

Get our overall rating based on a fundamental assessment of the pillars below.

  • Process Pillar

    The Process Pillar is our assessment of how sensible, clearly defined, and repeatable PRDAX’s performance objective and investment process is for both security selection and portfolio construction.

  • People Pillar

    The People Pillar is our evaluation of the PRDAX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.

  • Parent Pillar

    The Parent Pillar is our rating of PRDAX’s parent organization’s priorities and whether they’re in line with investors’ interests.

Principal Diversified Real Asset to Add Two New Sleeves to Its Portfolio; Ratings Unchanged

null Vedran Beogradlija

Vedran Beogradlija

Analyst Note

On Dec. 20, 2023, Principal announced that two new sleeves will be added to the Diversified Real Asset fund and collective investment trust sometime during 2024's first quarter. These impending additions do not alter the strategy or underlying investment philosophy. The team will add one sleeve dedicated to smaller tactical purchases via passive exchange-traded funds. This sleeve will be responsible for the tactical moves previously made within the existing liquidity sleeve for better transparency. The second sleeve will introduce a passive global natural-resources exposure that complements the existing natural-resources sleeve. Principal's passive equities team, reporting to Diversified Real Asset's lead portfolio manager May Tong, will manage the exposure. It is expected to receive 2% to 8% of portfolio assets, though the overall natural-resources target allocation remains at 15%. These impending changes do not affect the strategy's Average People and Process Pillar ratings.

by Vedran Beogradlija
Published on

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