Company: PDSRX
Filing Date: 2025-07-25
Form Type: 486BPOS
Source: 0001756404-25-000017
Chunk: 103

Company: Principal Real Asset Fund
Filing Date: 2025-07-25
Form: 486BPOS
Chunk 103
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 pro rata basis.

Because of PGI’s role as investment advisor to the Fund and other registered funds sponsored by PGI, conflicts may arise in connection with the services PGI provides to the Fund and these other registered funds. PGI also provides advisory services to funds that have multiple investment advisors (“Multi-Managed Funds”), such as the Fund. These services include determining the portion of a Multi-Managed Fund’s portfolio to be allocated to an advisor. Conflicts may arise in connection with the services PGI provides to the Fund for the following reasons:

• PGI or an affiliated person may serve as investment advisor to a portion of a Multi-Managed Fund. In addition, PGI might recommend that an affiliated person serve as sub-advisor to a portion of a Multi-Managed Fund. This raises a potential conflict because PGI’s or an affiliated investment advisor’s profit margin may vary depending on the extent to which a Multi-Managed Fund’s assets are managed by PGI or allocated to an affiliated advisor.

• A sub-advisor may determine that the asset class the Fund has hired it to manage can be managed effectively only by limiting the amount of money devoted to the purchase of securities in the asset class. In such a case, the sub-advisor may impose a limit on the amount of money PGI, on behalf of the Fund, may place with the sub-advisor for management. When a sub-advisor for two or more registered funds sponsored by PGI (such as the Fund) imposes such a limit, PGI and/or the sub-advisor may need to determine which registered fund will be required to limit its investment in the asset class and the degree to which the registered fund will be so limited. PGI and the sub-advisor may face a conflict of interest in making its determination.

PGI implements the following in an effort to limit the appearance of conflicts of interest and the opportunity for events that could trigger an actual conflict of interest:

• PGI uses a process to select investment advisors that emphasizes the selection of PGI or Principal-affiliated sub-advisors that are determined to be qualified under PGI’s due diligence process. However, PGI will select an unaffiliated sub-advisor to manage all or a portion of the Fund’s portfolio when deemed necessary or appropriate based upon a consideration of the Fund’s objective and investment strategies and available expertise and resources within the Principal organization.

• PGI provides ongoing oversight of the Fund’s investments to monitor adherence to its investment program.

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