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Total Return Story

Investment yield is important to investors who rely on interest or dividend income to meet living expenses. However, for those who don't need to rely on the income from an investment, yield is not the best measure. When investment income is reinvested to compound, the true measure of investment results is total return.

Total return is the overall change in value of an investment when dividend and capital gains distributions are reinvested to purchase additional shares of the fund. Total return considers:

• The interest paid in the form of dividend income
• Capital gains distributions
• The compounding effect of reinvested distributions
• Changes in share values

Total return shows the big picture. On the other hand, yield measures only dividend income and has no bearing on changes in share values or capital gains distributions.

The Compounding Advantage

Do you seek higher investment yields? A slightly higher yielding investment could mean a significant difference on your total return over the long-term. Compare the growth of a hypothetical $50,000 investment compounding at various fixed rates.

The Rewards of Compound Investing

This table is for illustrative purposes only and is not intended to project the performance of any Principal fund. Mutual funds do not offer fixed rates of return.

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 obtained by:

• Calling 1.800.222.5852 and requesting a prospectus
• Downloading a prospectus (A, B & C shares)
• Downloading a prospectus (J shares)
• Requesting a prospectus be mailed to you (A, B & C shares)
• Requesting a prospectus be mailed to you (J shares)

Please read the prospectus carefully before investing. See the mutual fund section of our site for a description of the different share classes.