Company: PDSRX
Filing Date: 2025-07-25
Form Type: 486BPOS
Source: 0001756404-25-000017
Chunk: 26

Company: Principal Real Asset Fund
Filing Date: 2025-07-25
Form: 486BPOS
Chunk 26
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 and 98.4% of gains from November 1 through October 31 each year before December 31 of the same year. A failure to distribute the correct amount can subject a RIC to four percent (4%) excise tax on the under distribution. The Fund invests in a number of investment entities treated as partnerships for U.S. taxation. For purposes of making the relevant distributions for excise tax purposes, the Fund calculates its dividends in December each year with best available information. The Fund uses it best efforts to obtain tax estimates from its investment partnerships for determining the amount of income to distribute to avoid excise tax. It is possible, however, that the actual investment partnership income reported to the Fund in the following year may be greater than estimates received causing the Fund to be under distributed for excise tax purposes, subjecting the Fund to the excise tax. To the extent the Fund is subject to an excise tax, it will reduce the returns of the Fund.

#### Foreign Currency (Principal)
Certain of the Fund’s investments will be denominated in foreign currencies or traded in securities markets in which settlements are made in foreign currencies. Any income on such investments is generally paid to the Fund in foreign currencies. In addition, the Fund may engage in foreign currency transactions for both hedging and investment purposes, as well as to increase exposure to a foreign currency or to shift exposure to foreign currency fluctuations from one country to another.

The value of foreign currencies relative to the U.S. dollar varies continually, causing changes in the dollar value of the Fund’s portfolio investments (even if the local market price of the investments is unchanged) and changes in the dollar value of the Fund’s income available for distribution to its shareholders. The effect of changes in the dollar value of a foreign currency on the dollar value of the Fund’s assets and on the net investment income available for distribution may be favorable or unfavorable. Transactions in non-U.S. currencies are also subject to many of the risks of investing in foreign (non-U.S.) securities; for example, changes in foreign economies and political climates are more likely to affect a fund that has foreign currency exposure than a fund that invests exclusively in U.S. companies and currency. There also may be less government supervision of foreign markets, resulting in non-uniform accounting practices and less publicly available information. Transactions in foreign currencies, foreign currency denominated debt and certain foreign currency options, futures contracts and forward contracts (and similar instruments) may give rise to ordinary income or loss to the extent such income or loss results