The experienced managers running Principal Tax-Exempt Bond follow a standard, research-based approach to build this portfolio. Yet the team remains on the smaller side by industry standards, and the team's willingness to hold relatively higher stakes of credit and interest-rate risk in this strategy combined with middling fees support a Morningstar Analyst Rating of Neutral on its cheaper share classes, while its most expensive share class is rated Negative.
Will PTEAX outperform in future?
Get our overall rating based on a fundamental assessment of the pillars below.
The Process Pillar is our assessment of how sensible, clearly defined, and repeatable PTEAX’s performance objective and investment process is for both security selection and portfolio construction.
The People Pillar is our evaluation of the PTEAX management team’s experience and ability. We find that high-quality management teams deliver superior performance relative to their benchmarks and/or peers.
The Parent Pillar is our rating of PTEAX’s parent organization’s priorities and whether they’re in line with investors’ interests.