Variable annuities are long term investments and thus are not suitable for everyone; earnings grow tax-deferred; and withdrawals prior to age 59 ½ may result in a 10% penalty tax.
The initial offering of the Principal Freedom Variable Annuity was April 30, 1999. The separate account that funds the contract was established on January 12, 1970.
The investment results shown represent historical returns based upon the assumption that the Principal FreedomSM Variable Annuity was available for the period shown. Past performance is no guarantee of future results. Current performance may be lower or higher than the performance data shown. For more performance information, including most recent month-end performance, visit our website at www.principal.com and click on "Rates & Values."
The return and principal value of an investment in any of the divisions will fluctuate so that the value, when redeemed, may be worth more or less than its original cost.
Except where noted, investment results include all charges and expenses (no contingent deferred surrender charge applies).
An investment in the PVC Money Market and Fidelity VIP Government Money Market Subaccounts are not insured or guaranteed by the Federal Deposit Insurance Corporation (FDIC) or any other government agency. Although the underlying mutual fund invested in by the subaccounts seeks to preserve the value of your investment at $1 per share, the subaccounts themselves do not seek to maintain a stable net asset value. It is possible to lose money investing in these subaccounts.
The PVC Money Market 7-day current yield is computed as follows: the funds average daily net income per share during the 7-day period is divided by the average daily price per share during the period. The result is multiplied by 365, with the resulting annualized yield carried to the nearest 1/100th of 1%. Effective 7-day yield is annualized compounded return assuming distributions are reinvested. The 7-day yield % more closely reflects the current earnings of the PVC Money Market option than the total return displayed.
Before investing in a variable annuity, investors should carefully consider the investment objectives, risks, charges and expenses of the contract and its underlying investment options. This and other information is contained in the free prospectus and, if available, the summary prospectus which can be obtained online or call customer service at 1.800.852.4450. Please read the prospectus and, if available, the summary prospectus carefully before investing.
Equity investment options involve greater risk, including heightened volatility, than fixed-income investment options. Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Fixed-income investment options that invest in mortgage securities and subject to increased risk due to real estate exposure.
| Principal FreedomSM Variable Annuity
Quarterly Performance Update
as of 03/31/2016
|Average Annual Total Returns|
|YTD||1 Year||3 Year||5 Year||10 Year||Since
|SHORT-TERM FIXED INCOME|
|FIDELITY GOV MONEY MARKET||04/01/1982||0.25%||9.983872||- 0.000549||-0.18||-0.79||-0.82||-0.79||0.45||3.55||-0.10|
|SHORT-TERM INCOME||01/12/1994||0.49%||12.045708||- 0.000842||0.97||0.26||0.47||1.19||2.29||2.90||2.58|
|BOND & MORTGAGE SEC||12/18/1987||0.45%||18.238495||- 0.033136||2.59||-0.39||1.24||2.96||3.24||5.42||5.42|
|GOVT & HIGH QUALITY BOND||05/06/1993||0.51%||12.713657||0.023471||2.05||0.94||1.32||2.41||3.54||3.80||3.29|
|LARGE US EQUITY|
|AMCENT VP INCOME & GROWTH||10/31/1997||0.7%||17.738380||0.122390||3.08||-2.66||9.26||9.80||4.95||5.15||3.37|
|LARGECAP GROWTH I||06/01/1994||0.76%||18.581484||0.171577||-3.28||-0.88||11.34||10.12||7.14||8.37||8.37|
|LARGECAP S&P 500 INDEX||05/03/1999||0.25%||17.566523||0.129707||1.03||0.64||10.54||10.26||5.80||3.24||3.24|
|TEMPLETON GROWTH VIP||08/24/1988||1.03%||19.883452||0.071992||-1.71||-10.15||2.50||3.62||1.54||6.94||3.89|
|SMALL/MID US EQUITY|