Company: PDSRX
Filing Date: 2025-05-28
Form Type: N-CSR
Source: 0001756404-25-000011
Chunk: 2

Company: Principal Real Asset Fund
Filing Date: 2025-05-28
Form: N-CSR
Chunk 2
---
interest

rates

by

100bps

in

2024

before

the

pause.

The

latest

dot

plot

implies

50bps

of

cuts

still

to

come

in

2025.

Global

policy

rates

fell

by

71bps

in

the

last

twelve

months—17bps

in

emerging

markets

(EM)

and

105bps

in

developed

markets

(DM).

Global

manufacturing

activity

continues

to

be

a

mixed

bag.

Global

manufacturing

Purchasing

Manager’

Index

(PMI)

has

remained

below

50

for

the

last

twelve

months,

with

the

latest

reading

at

49.6.1

Emerging

market

PMIs

were

marginally

above

50,

while

developed

markets

were

below

50.

As

expected,

global

earnings

growth

bottomed

out

and

is

back

on

the

rise.

The

MSCI

All

Country

World

Index

(ACWI)

trailing

twelve

months

earnings

per

share

(TTM

EPS)

growth

was

up

5%

compared

to

the

same

time

last

year.

The

S&P

500

saw

10%

earnings

growth,

while

the

MSCI

World

ex-U.S.

Index

saw

a

4%

decline.

Within

the

U.S.,

large-cap

growth

stocks,

represented

by

the

Russell

1000

Growth

Index,

delivered

the

highest

earnings

growth

at

17%.

Small-cap,

mid-cap

and

value

stocks,

represented

by

the

S&P

Small-Cap

600

Index,

the

S&P

Mid-Cap

400

Index,

and

the

Russell

1000

Value

Index,

all

saw

weak

year-over-year

earnings

growth

at

-5%,

1%

and

2%,

respectively.

Emerging

markets,

represented

by

the

MSCI

Emerging

Markets

Index,

delivered

8%

earnings

growth.

Global

equities

slightly

outperformed