Principal Funds has changed its Principal Global Diversified Income Fund. It added a global public infrastructure allocation, by offering exposure to assets that have historically provided predictable and steady cash flows with strong yield potential. It also added a call option overwriting strategy to reduce the volatility of the underlying equity strategies and enhance the return potential, and redefined the role of commercial mortgage-backed securities in the fund, moving it from an opportunistic strategy within the Global Real Estate allocation to a separate, more strategic allocation.

"We continuously monitor new asset classes and managers and seek to identify ways to improve the fund's risk profile," said Mike Finnegan, portfolio advisor and Principal Funds' chief investment officer. "We believe the recent additions serve this exact purpose."

The Principal Global Diversified Income Fund seeks to provide consistent cash income through a diversified, yield-focused investment approach. Multiple specialist managers use tailored investment strategies that seek different alternative sources of income within a single fund.