Request URL: http://www.principal.com/InvestmentProfiles/index.faces
Investment Type: pif

Global Real Estate Securities Inst Fund (POSIX)

Quick Facts Ticker: POSIX Inception Date: 10/01/2007 Morningstar Category: Global Real Estate Total Net Assets (mil): $12.68	Investment Strategy    What's this? The investment seeks to generate a total return. The fund invests at least 80% of net assets (plus any borrowing for investment purposes) in equity securities of U.S. and non-U.S. companies principally engaged in the real estate industry ("real estate companies"), which include real estate companies with at least 50% of assets, income or profits derived from products or services related to the real estate industry. It is nondiversified.
Morningstar Style Box™   as of 07/31/2010 What's this?	Overall Morningstar Star Rating™   What's this? Out of Funds Star Rating Not Rated 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 % -0.81 6.87 4.89 14.98 --- --- --- -12.03 FTSE EPRA/NAREIT Developed Index % -0.54 6.90 4.40 15.11 -10.46 1.32 8.79 --- Global Real Estate Category % -0.57 7.57 1.62 10.94 -11.78 -0.11 9.62 --- Morningstar Percentile Ranking** --- --- --- 18 --- --- --- --- # of Funds in Category 165 165 162 154 104 40 16 ---

* Inception Date: 10/01/2007

**Morningstar percentile rankings are based on total returns.

Expenses

  as of 08/31/2010

Total Investment Expense - Gross:	3.76%
Total Investment Expense - Net:	0.95%
Waiver Date:	02/28/2011
Contractual Cap Date:	02/28/2011

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

   What's this?

Principal Real Estate Inv

Portfolio Managers

   What's this?

Chris Lepherd Since 10/01/2007 M.S. , Securities Institute of Australia

Simon Hedger Since 10/01/2007 M.B.A. , University of New England

Kelly D. Rush , CFA Since 10/01/2007 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 Global Real Estate Securities Inst 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

FTSE EPRA/NAREIT Developed Index is designed to represent general trends in eligible real estate equities worldwide. 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. Real estate investment options are subject to some risks inherent in real estate and Real Estate Investment Trusts, such as risks associated with general and local economic conditions. Not all funds associated with the institutional class shares of the Principal Funds series are registered in every state. These funds will be appropriately registered for use upon selection for your retirement plan.