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Investment Type: pif

Diversified International R4 Fund (PINLX)

Quick Facts Ticker: PINLX Inception Date: 12/06/2000 Morningstar Category: Foreign Large Blend Total Net Assets (mil): $1,564.84	Investment Strategy    What's this? The investment seeks long-term growth of capital. The fund invests in a portfolio of equity securities of companies domiciled in any of the nations of the world, primarily in developed regions such as Western Europe, Canada, Australia, New Zealand, and the Pacific Islands. It normally intends to have at least 80% of the net assets (plus any borrowings for investment purposes) invested in companies in at least three different countries, one of which may be the U.S. though currently the fund does not intend to invest in equity securities of U.S. companies.
Morningstar Style Box™   as of 07/31/2010 What's this?	Overall Morningstar Star Rating™   as of 08/31/2010 What's this? Out of 661 Foreign Large Blend Funds Morningstar's Star Ratings reflect risk adjusted performance and are derived from a weighted average of the performance figures associated with its three, five, and ten-year (if applicable) time periods.

Total Returns

Investment results shown represent historical performance and do not guarantee future results. Investment returns and principal values fluctuate with changes in interest rates and other market conditions so the value, when redeemed, may be worth more or less than original costs. Current performance may be lower or higher than the performance data shown.

In situations where the net and gross total investment expense figures are different, the mutual fund or the underlying fund in which a Separate Account invests has waived/capped a portion of its management fees through the date displayed in the waiver expiration date or contractual cap expiration date column. Differences may also be shown due to the fund family choosing to pay certain expenses that would normally be payable by the fund. Returns displayed are based on net total investment expense.

Month-End | Quarter-End

Average Annual Total Returns as of 08/31/2010

1 Month 3 Month YTD 1 Year 3 Year 5 Year 10 Year Since      Inception* Total Return % -3.28 4.52 -6.76 1.42 -12.65 0.76 --- 1.95 MSCI ACWI Ex US Index % -2.75 4.67 -5.70 2.85 -8.36 3.33 2.75 --- Foreign Large Blend Category % -3.22 4.73 -6.86 0.40 -10.59 0.97 0.42 --- Morningstar Percentile Ranking** --- --- --- 39 75 49 --- --- # of Funds in Category 838 835 821 806 661 472 265 ---

* Inception Date: 12/06/2000

**Morningstar percentile rankings are based on total returns.

Expenses

  as of 08/31/2010

Total Investment Expense - Gross:	1.29%
Total Investment Expense - Net:	1.29%
12b-1 Fee:	0.10%

Growth of $10,000

   What's this?

Performance assumes reinvestment of all dividends and capital gains. Extended performance is calculated based on the historical performance of the investment option's oldest share class, adjusted for the fees and expenses of the share class shown. Periods of less than one year are not annualized.

Investment Subadvisors

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Principal Global Investors

Portfolio Managers

   What's this?

Paul H. Blankenhagen , CFA Since 12/22/2003 M.S. , Drake University

Juliet Cohn Since 06/14/2004 B.S. , Trinity College

Christopher Ibach , CFA Since 03/01/2005 M.B.A. , University of Iowa

© 2010 Morningstar, Inc. All Rights Reserved. Part of the mutual fund data contained herein: (1) is proprietary to Morningstar and/or its content providers; (2) may not be copied or distributed; and (3) is not warranted to be accurate, complete, or timely. Neither Morningstar nor its content providers are responsible for any damages or losses arising from any use of this information. Returns shown for periods of less than one year are not annualized. Insurance products and plan administrative services are provided by Principal Life Insurance Company. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities are offered through Princor Financial Services Corporation, 800-547-7754, member SIPC and/or independent broker/dealers. Securities sold by a Princor® Registered Representative are offered through Princor. Principal Funds Distributor, Princor and Principal Life are members of the Principal Financial Group®, Des Moines, IA 50392. Certain investment options may not be available in all states or U.S. commonwealths. The full name of this investment option is Principal Diversified International R4 Fund. Before investing in mutual funds, investors should carefully consider the investment objectives, risks, charges and expenses of the funds. This and other information is contained in the free prospectus, which can be downloaded from our site, or by contacting us at 1.800.547.7754. Please read the prospectus carefully before investing. Not FDIC Insured May Lose Value - Not a Deposit - No Bank Guarantee Not Insured by any Federal Government Agency

MSCI ACWI Ex US Index is a free float-adjusted market capitalization index that is designed to measure the combined equity market performance of developed and emerging market countries excluding the US. International and global investment options are subject to additional risk due to fluctuating exchange rates, foreign accounting and financial policies, and other economic and political environments.