Fund Facts  

Inception Date: Apr 8, 1998
Ticker Symbol: CPHYX
Morningstar Category:High Yield Bond
As of Mar 31, 2014
Fund Net Assets ($millions) $4,211

Documents for Fund or Underlying Fund(s)  

Description

Objective  

The investment seeks to provide a relatively high level of current income.

Principal Investment Strategies  

The fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in below investment grade bonds (sometimes called "high yield bonds" or "junk bonds") which are rated at the time of each purchase Ba1 or lower by Moody's and BB+ or lower by S&P. It also invests in bank loans (also known as senior floating rate interests) and securities of foreign issuers, including those located in developing or emerging countries. The fund maintains an average portfolio duration that is within ±20% of the duration of the Barclays US High Yield 2% Issuer Capped Index.

Principal Investment Risks  

There is no guarantee that the Fund will achieve its investment objective. You may lose money by investing in the Fund. Please see the Risk Glossary for additional information about the Fund’s risks.

 

Performance & Expenses

Standard Performance As of Mar 31, 2016
Fund/Benchmark Name QtrYTD1-Yr3-Yr5-Yr10-YrSince Inception
Principal High Yield Aa2.02%2.02%-3.77%1.69%4.52%6.74%7.12%
Barclays U.S. Corporate High Yield 2% Issuer Capped Bond Indexa,b3.35%3.35%-3.66%1.86%4.93%7.03%N/A
Morningstar High Yield Bonda,c2.13%2.13%-4.17%1.06%3.84%5.55%N/A

Fund past performance, as shown, is no guarantee of how the fund will perform in the future. The performance shown has been annualized for periods greater than one year. Investment returns and principal value will fluctuate, so that an investor's shares, when redeemed, may be worth more or less than their original cost. For current performance, visit www.icmarc.org.

Fund performance is shown comparing it to a "benchmark" which may be a (i) broad-based securities market index (ii) a group of mutual funds with similar investment objectives, or (iii) a short term government backed debt obligation such as a U.S. Treasury Bill. An index is not available for direct investment, is unmanaged, and does not reflect the costs of portfolio management or trading. A fund's portfolio may differ from the securities held in an index.

Annual Fund Operating Expenses
Total expensesa0.88%

 

a. Returns and/or expenses provided by Morningstar, Inc. Copyright © 2016. All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. ICMA-RC does not independently verify Morningstar data.

b. The Barclays U.S. Corporate High Yield 2% Issuer Capped Bond Index is an issuer-constrained version of the Barclays U.S. Corporate High Yield Index that measures the market of USD-denominated, non-investment grade, fixed-rate, taxable corporate bonds. The Barclays U.S. Corporate High Yield 2% Issuer Capped Bond Index limits the exposure of each issuer to 2% of the total market value and redistributes any excess market value index-wide on a pro-rata basis.

c. The Fund’s Morningstar Category Average is a group of funds with similar investment objectives and strategies and is the equal-weighted return of all funds per category. Morningstar places funds in certain categories based on a fund’s historical portfolio holdings.

Morningstar Information

Morningstar Rating   As of Mar 31, 2014
Period Stars Category Size
Overall 4 Stars646
3-Year 2 Stars646
5-Year 2 Stars530
10-Year 5 Stars365

For each fund with at least a three-year history, Morningstar calculates a Morningstar Rating™ based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a fund's monthly performance (including the effects of sales charges, loads, fee waivers, and redemption fees), placing more emphasis on downward variations and rewarding consistent performance. The top 10% of funds in each category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars and the bottom 10% receive 1 star. The Overall Morningstar Rating for a fund is derived from a weighted average of the performance figures associated with its three-, five- and ten-year (if applicable) Morningstar Rating metrics. For funds with loads, the Morningstar rating on a load-waived basis is provided, when available. Load-waived ratings do not include any front- or back-end sales loads and are intended for investors that have access to such purchase terms. Funds with loads are waived for plans administered by ICMA-RC. Past performance is no guarantee of future results.

Morningstar Stylebox As of Mar 31, 2014
Fixed Income Stylebox
Low Limited
Allocation of Assets As of Feb 28, 2014
Type of Asset Percent
Equity0%
Fixed Income93%
Cash/Other7%

Due to rounding, percentages shown may not add up to 100%.

 
 

Characteristics

Allocation of Assets As of Feb 28, 2014
Asset ClassPercent
Domestic Stock0.0%
Foreign Stock0.0%
Domestic Bond60.0%
Foreign Bond31.3%
Preferred1.5%
Convertible0.0%
Cash5.3%
Other2.0%

Due to rounding, percentages shown may not add up to 100%.

 
Fixed Income Sector As of Feb 28, 2014
SectorPercent
Corporate90.8%
Cash & Equivalents5.3%
Securitized1.8%

Exposure reflects fixed income securities only and will sum to the fixed income exposure of the fund.

 
Credit Quality As of Feb 28, 2014
Quality LevelPercent
AAA0.0%
AA0.0%
A0.2%
BBB2.5%
BB33.1%
B36.6%
Below B20.4%
Not Rated7.2%

Due to rounding, percentages shown may not add up to 100%. Exposure reflects fixed income securities only.

 
Top Ten Holdings As of Feb 28, 2014
Holding NamePercent
ArcelorMittal39 SrN1.2%
Taminco Global Chem 144A 9.75%1.1%
Dish Dbs 6.75%1.0%
Ing U S FRN1.0%
Denali Borrower Llc / Denali 144A 5.625%0.9%
Ally Finl Pfd 144A0.9%
Seagate Hdd Cayman 6.875%0.9%
Wideopenwest Fin Llc/Wideop 13.375%0.9%
Dish Dbs 5.875%0.9%
Navios Maritime Acquisition 144A 8.125%0.9%
 

Statistics

Duration and Maturity As of Feb 28, 2014
StatisticValue
Average Effective Duration3.64 years
Average Effective Maturity7.33 years
Portfolio Statistics As of Mar 31, 2014
Statistic3-Year5-Year
Beta0.990.89
Alpha-0.32-0.45
Standard Deviation6.477.86
 
 

Footnotes

1.

Please read the fund's prospectus carefully for a complete summary of all fees, expenses, investment objectives and strategies, risks, financial highlights, and performance information. Investing involves risk, including possible loss of the amount invested. Investors should carefully consider the information contained in the prospectus before investing. You may contact us to obtain a prospectus or to answer questions by calling 800-669-7400, emailing investorservices@icmarc.org, or visiting www.icmarc.org.

The source for this information is Morningstar, Inc. Copyright © 2016 Morningstar, Inc.® All Rights Reserved. The information contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Morningstar, Inc. is a global investment research firm that is not affiliated with ICMA-RC. ICMA-RC does not independently verify Morningstar data.

Morningstar places funds in certain categories based on the fund's historical portfolio holdings. Placement of a fund in a particular Morningstar category does not mean that the fund will remain in that category or that it will invest primarily in securities consistent with its Morningstar category. A fund's investment strategy and portfolio holdings are governed by its prospectus, guidelines or other governing documents, not its Morningstar category.