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Investment Type: pif

Bond Market Index R5 Fund (PBIQX)

Quick Facts Ticker: PBIQX Inception Date: 12/30/2009 Morningstar Category: Intermediate-Term Bond Total Net Assets (mil): $1,758.28	Investment Strategy    What's this? The investment seeks to provide current income. Under normal circumstances, the fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in investments designed to track the Bloomberg Barclays U.S. Aggregate Bond Index (the "index") at the time of purchase. The index is composed of investment grade, fixed rate debt issues with maturities of one year or more, including government securities, corporate securities, and asset-backed and mortgage-backed securities (securitized products).
Morningstar Style Box™   as of 10/31/2018    What's this?	Overall Morningstar Star Rating™   as of 11/30/2018    What's this? Out of 875 Intermediate-Term Bond 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 11/30/2018

1 Month 3 Month YTD 1 Year 3 Year 5 Year 10 Year Since      Inception* Total Return % 0.57 -0.94 -2.22 -1.78 0.76 1.43 --- 2.37 Bloomberg Barclays Aggregate Bond Index % 0.60 -0.84 -1.79 -1.34 1.33 2.03 3.67 --- Intermediate-Term Bond Category % 0.36 -0.87 -1.75 -1.36 1.52 1.91 4.49 --- Morningstar Percentile Rankings** --- --- --- 70 87 78 --- --- # of Funds in Category 1090 1080 1033 1024 875 776 562 ---

* Inception Date: 12/30/2009

**Morningstar percentile rankings are based on total returns.

Expenses   as of 11/30/2018 Total Investment Expense - Gross: 0.53% Total Investment Expense - Net: 0.43% Waiver Date: 12/30/2019 Contractual Cap Date: 12/30/2019 Total Investment Expense Gross Per $1,000 Invested: $5.30

Statistics   30-Day SEC Yield - Subsidized (Net) as of 11/30/2018: 2.88% 30-Day SEC Yield - Non-Subsidized (Gross) as of 11/30/2018: 2.78%

Inv Manager or Sub-Advisor

   What's this?

Mellon Capital Mgmt

Portfolio Managers

   What's this?

Gregory A. Lee , CFA Since 12/31/2010 B.S. , University of California, Davis

Stephanie Shu , CFA Since 10/02/2015 M.S. , Texas A&M University

Paul L. Benson , CFA Since 10/02/2015 B.A. , University of Michigan

Nancy G. Rogers , CFA Since 10/02/2015 M.B.A. , Drexel University

© 2018 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, if applicable, are provided by Principal Life Insurance Company. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc. Securities are offered through Principal Securities, Inc., 800-547-7754, member SIPC and/or independent broker/dealers. Securities sold by a Principal Securities Registered Representative are offered through Principal Securities. Principal Funds Distributor, Principal Securities 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 Funds, Inc. - Principal Bond Market Index R5 Fund. Investors should carefully consider a mutual fund's investment objectives, risks, charges, and expenses prior to investing. A prospectus, or summary prospectus if available, containing this and other information can be obtained by contacting a financial professional, visiting principal.com, or calling 1-800-547-7754. 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

Fees and expenses are only one of several factors that participants and beneficiaries should consider when making investment decisions.  The cumulative effect of fees and expenses can substantially reduce the growth of a participant's or beneficiary's retirement account.  Participants and beneficiaries can visit the Employee Benefit Security Administration's website for an example demonstrating the long-term effect of fees and expenses.

Bloomberg Barclays Aggregate Bond Index represents securities that are domestic, taxable, and dollar denominated. The index covers the U.S. investment grade fixed rate bond market, with index components for government and corporate securities, mortgage pass-through securities, and asset-backed securities. These major sectors are subdivided into more specific indices that are calculated and reported on a regular basis. Each index based investment option is invested in the stocks or bonds of the index it tracks. Performance of indexes reflects the unmanaged results for the market segment the selected stocks or bonds represent. There is no assurance an index based investment option will match the performance of the index tracked. Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure. Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Neither the principal of bond investment options nor their yields are guaranteed by the U.S. government.