M&A - PRINCIPAL FUNDS, INC.
Form Type: 497
Filing Date: 2025-02-03
Corporate Action: Merger
Type: New
Accession Number: 000089874525000012
Filing Summary: The Board of Directors of Principal Funds, Inc. (PFI) has approved a Plan of Acquisition for the reorganization of the High Income Fund (the Acquired Fund) into the High Yield Fund (the Acquiring Fund). Under this Plan, the Acquiring Fund will acquire all assets and liabilities of the Acquired Fund in exchange for newly issued shares of the Acquiring Fund, with a complete liquidation and termination of the Acquired Fund. Shareholders of the Acquired Fund will become shareholders of the Acquiring Fund, receiving shares equivalent in value to their holdings. The total issued shares will match the total net assets of the Acquired Fund as of the close of trading on February 28, 2025. No shareholder approval is required for this reorganization. An opinion of legal counsel indicates there will be no gain or loss for shareholders for federal income tax purposes. PFI will cover direct expenses related to the Reorganization estimated at $12,275. The move is deemed to be in the best interests of shareholders without diluting their interests.
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Additional details:
Plan Of Acquisition: Reorganization of High Income Fund into High Yield Fund
Acquired Fund: High Income Fund
Acquiring Fund: High Yield Fund
Expected Closing Date: 2025-02-28
Form Type: N-14
Filing Date: 2025-01-03
Corporate Action: Merger
Type: New
Accession Number: 000089874525000003
Filing Summary: 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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Additional details:
Title: approximate_date_proposed_public_offering
Value: As soon as practicable after this Registration Statement becomes effective under the Securities Act of 1933, as amended.
Title: title_of_securities_being_registered
Value: Institutional Class Shares, par value $0.01 per share.
Title: total_value_acquired_fund
Value: $598,450,000
Title: total_value_acquiring_fund
Value: $5,850,503,000
Title: expected_closing_date_reorganization
Value: February 28, 2025
Title: board_approval_date
Value: October 31, 2024
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