Principal Funds unveiled plans to close Class B shares of its funds to new or additional purchases by existing shareholders come March 2, according to the company's website.

By the close of business on February 26, the firm will no longer accept new accounts or subsequent purchases of Class B shares. Existing shares will be converted into Class A shares according to their current conversion schedule, which is determined by the date of purchase. However, exchanges and dividend reinvestments within Class B shares will still be permitted. Of further note, the firm advises current shareholders that the early redemption of Class B shares may trigger a taxable event and be subject to a Contingent Deferred Sales Charge (CDSC).

According to their website, Principal Funds' management decision was prompted by the decline in B shares sales and the overall industry shift away from the use of the share class.  

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