PTEAX

About PTEAX

Principal Tax-Exempt Bond Fund Class A is a fixed income mutual fund designed to provide a high level of income that is exempt from federal income tax, while aiming to preserve investors’ capital. Managed by Principal Global Investors, the fund primarily invests in a diversified portfolio of U.S. municipal bonds, which are debt securities issued by state and local governments and their agencies. These bonds typically finance public projects such as infrastructure, utilities, and community development. The fund’s holdings span various sectors and regions, with notable exposure to municipal issuances in transportation, energy, and housing. The fund’s investment approach may involve assuming moderate credit and interest rate risk relative to its peers, allowing for the potential of higher yields. With a total asset base exceeding $500 million, it plays a significant role for investors seeking federally tax-exempt income and diversification within municipal fixed income markets. The fund's effective duration and credit profile reflect its focus on intermediate-term municipal securities, making it a recognized option within the municipal bond fund category.