Fund Description

The fund was incepted in December 1987 and is managed by Principal Management Corporation. The fund seeks to provide as high a level of income as is consistent with preservation of capital and prudent investment risk. Under normal circumstances, the fund invests at least 80% of its assets in securities issued or guaranteed by the U.S. Government or its agencies or instrumentalities, in mortgage-backed securities, in debt securities and taxable municipal bonds rated in one of the top four categories by S&P/Moody's or of comparable quality and in securities issued or guaranteed by the governments of Canada or the United Kingdom payable in U.S. dollars. Under unusual market or economic conditions, the fund may invest up to 100% of its assets in cash and cash equivalents. The fund offers dividends monthly and capital gains annually.