Principal merges SmallCap Value, Growth funds into SmallCap Blend Fund

By Toni Weeks

San Diego, Nov. 18 - Principal Funds, Inc. intends to reorganize its SmallCap Growth Fund and SmallCap Value Fund into its SmallCap Blend Fund, according to an N-14 filing with the Securities and Exchange Commission.

The boards of directors of the funds have unanimously approved the reorganization, citing that the SmallCap Blend Fund has outperformed the SmallCap Growth and SmallCap Value funds. The acquiring fund has the same investment objectives and similar principal policies and risks. Although the SmallCap Blend Fund has higher overall expense ratios, Principal Management Corp., the investment manager, has agreed to cap its expenses for two years following reorganization.

Shareholders as of Nov. 28 will be asked to vote by Feb. 3. If approved by shareholders, the reorganization is expected to occur Feb. 17.

A shareholders meeting will be held on Feb. 6 at Principal's Des Moines offices.

Principal Funds' parent company is Des Moines-based Principal Financial Group, a global financial services provider.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.