M&A: PRINCIPAL FUNDS, INC.

Form Type: N-14

Filing Date: 2025-01-03

Corporate Action: Merger

Type: New

Accession Number: 000089874525000003

Comments: Principal Funds, Inc. has filed a registration statement on Form N-14 with the SEC pertaining to the reorganization of the High Income Fund into the High Yield Fund. The Board of Directors approved a Plan of Acquisition which involves the Acquiring Fund acquiring all assets, subject to all liabilities of the Acquired Fund in exchange for newly issued shares. The shareholders of the Acquired Fund will receive shares of the Acquiring Fund in a total value equivalent to their holdings in the Acquired Fund, ensuring no dilution of interests. The Reorganization is expected to take place on February 28, 2025. The filing indicates that there is no gain or loss recognized for federal income tax purposes as a result of the Reorganization, and shareholder approval for this action is not required. The preparation and execution of this merger are intended to combine the investment management of both funds under Principal Global Investors, while maintaining separate classes of shares for the respective funds.

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