Company: PDSRX
Filing Date: 2025-05-28
Form Type: N-CSR
Source: 0001756404-25-000011
Chunk: 26

Company: Principal Real Asset Fund
Filing Date: 2025-05-28
Form: N-CSR
Chunk 26
---
licable.

In

December

2023,

the

FASB

issued

ASU

No.

2023-09

Income

Taxes

(Topic

740);

Improvements

to

Income

Tax

Disclosures,

which

enhances

the

transparency

and

decision

usefulness

of

income

tax

disclosures

primarily

related

to

rate

reconciliation,

disaggregation

of

income

taxes

paid,

and

other

income

tax-related

disclosures.

The

ASU

is

effective

for

annual

periods

beginning

after

December

15,

2024.

### Management
is

currently

evaluating

the

impact

of

applying

the

ASU

to

the

Fund’s

### financial
statements.

#### 3.

#### Operating

#### Policies

#### Borrowings.
T

he

Fund

participates

in

a

line

of

credit

with

a

bank

which

allows

a

borrowing

commitment

amount

of

up

to

$15

million.

Borrowings

may

be

used

for

investment

purposes,

to

meet

repurchase

requests

and/or

to

facilitate

the

handling

of

unusual

or

unanticipated

short-term

cash

requirements.

The

Fund

will

pledge

securities

as

collateral

for

borrowing

on

the

line

of

credit

and

maintain

an

aggregate

collateral

value

not

less

than

the

outstanding

borrowing

amount

at

all

times.

Interest

is

charged

at

an

annual

rate

equal

to

the

Overnight

Bank

Funding

Rate

(“OBFR”)

plus

0.90%.

Additionally,

a

commitment

fee

is

charged

at

an

annual

rate

of

0.40%

on

any

day

when

the

outstanding

borrowing

amount

is

less

than

90%

of

the

borrowing

commitment

amount.

The

interest

expense

and

commitment

fee

associated

with

these

borrowings

is

included

in

other

expenses

on

the

statement

of