Principal Funds, Inc. Daily Net Asset Values Report - R5

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Low Risk/Return
High Risk/Return
Inv Manager or Sub-Advisor / Investment Unit Value YTD % * 1 Mo 3 Mo 1 Yr 3 Yrs 5 Yrs 10 Yrs Since Inception Inception Date Net Gross Contrct. Cap /
Waiver Exp. Date
02/07/2025
Values
Average Annual Total Returns as of
01/31/2025
Total Investment Expense
Large Value
Principal Global Investors
Equity Income R5 Fund (PEIQX)   PMF, PFP, ##, TR3, FP2, 27
40.71 4.38 5.05 4.28 20.62 7.12 9.70 10.02 8.97 03/01/2010
05/31/1939
0.77 0.77 N/A
N/A
Westwood / Barrow Hanley
LargeCap Value III R5 Fund (PPSRX)   PMF, PFP, ##, TR3, FP2, 15, 21, 22
19.92 3.48 3.84 3.07 18.04 7.93 10.06 9.61 7.11 12/06/2000
12/06/2000
0.96 1.03 N/A
02/28/2025
Large Blend
Principal Global Investors
Capital Appreciation R5 Fund (PCAQX)   PMF, PFP, ##, TR3, FP2, 12, 27
83.75 3.04 3.33 6.86 27.27 13.10 15.56 13.74 12.83 03/01/2010
11/24/1986
0.70 0.70 N/A
N/A
Principal Global Investors
LargeCap S&P 500 Index R5 Fund (PLFPX)   PMF, PFP, ##, TR3, FP2, 2, 16, 21, 22, 30
29.60 2.49 2.74 6.09 25.84 11.45 14.67 13.28 7.97 12/06/2000
12/06/2000
0.36 0.36 N/A
N/A
Large Growth
Principal Global Investors
Blue Chip R5 Fund (PGBGX)   PMF, PFP, ##, TR3, FP2, 27
46.76 3.43 4.62 9.34 23.70 10.55 14.58 16.01 16.36 03/29/2016
06/14/2012
0.82 0.85 N/A
12/30/2025
T. Rowe Price/Brown Advisory
LargeCap Growth I R5 Fund (PPUPX)   PMF, PFP, ##, TR3, FP2, 3, 15, 21, 22
15.28 2.69 2.82 7.73 24.75 10.08 13.88 14.92 8.37 12/06/2000
12/06/2000
0.85 0.87 N/A
02/28/2025
Mid Cap Value
LA Capital Mgmt/Victory
MidCap Value I R5 Fund (PABVX)   PMF, PFP, ##, TR3, FP2, 1, 12, 15, 27
15.85 3.06 3.77 2.83 16.58 7.90 11.50 8.95 9.59 06/01/2004
12/29/2003
0.88 0.90 N/A
02/28/2025
Mid Cap Blend
Principal Global Investors
MidCap S&P 400 Index R5 Fund (PMFPX)   PMF, PFP, ##, TR3, FP2, 1, 2, 12, 19, 21, 22, 30
23.72 2.77 3.81 4.79 19.83 8.42 11.30 9.75 9.09 12/06/2000
12/06/2000
0.42 0.42 N/A
N/A
Mid Cap Growth
Principal Global Investors
MidCap Growth R5 Fund (PHPPX)   PMF, PFP, ##, TR3, FP2, 1, 12, 21, 22
12.92 6.78 6.12 14.85 29.05 4.94 12.45 11.40 6.13 12/06/2000
12/06/2000
0.93 0.93 N/A
N/A
Robert Baird/Eagle Asset Mgmt
MidCap Growth III R5 Fund (PPQPX)   PMF, PFP, ##, TR3, FP2, 1, 12, 15, 21, 22
8.11 5.87 5.74 9.09 15.01 4.55 9.27 10.13 6.14 12/06/2000
12/06/2000
1.06 1.08 N/A
02/28/2025
Small Value
Vaughan Nelson/H&W
SmallCap Value II R5 Fund (PLARX)   PMF, PFP, ##, TR3, FP2, 1, 12, 15
11.41 2.24 3.23 4.46 12.52 6.80 10.94 8.39 8.14 06/01/2004
06/01/2004
1.20 1.22 N/A
02/28/2025
Small Blend
Principal Global Investors
SmallCap R5 Fund (PSBPX)   PMF, PFP, ##, TR3, FP2, 1, 12, 21, 22
29.10 4.08 4.51 5.14 14.17 4.32 8.74 8.60 8.60 12/06/2000
12/06/2000
1.00 1.00 N/A
N/A
Principal Global Investors
SmallCap S&P 600 Index R5 Fund (PSSPX)   PMF, PFP, ##, TR3, FP2, 1, 2, 12, 18, 21, 22
27.73 1.72 2.86 4.89 15.93 5.05 9.36 9.17 9.29 12/06/2000
12/06/2000
0.42 0.42 N/A
N/A
Small Growth
AB/Brown/Emerald
SmallCap Growth I R5 Fund (PPNPX)   PMF, PFP, ##, TR3, FP2, 1, 12, 15, 21, 22
13.59 3.50 4.34 6.27 21.67 4.41 8.19 10.38 7.22 12/06/2000
12/06/2000
1.13 1.15 02/28/2025
02/28/2025
Real Estate
Principal Real Estate Inv
Real Estate Securities R5 Fund (PREPX)   PMF, PFP, ##, TR3, FP2, 3, 14, 21, 22
27.44 1.97 0.85 -3.24 11.38 -1.20 3.43 5.44 9.87 12/06/2000
12/06/2000
1.06 1.06 N/A
N/A
Diversified Emerging Mkts
Principal Global Investors
Global Emerging Markets R5 Fund (PEPSX)   PMF, PFP, ##, TR3, FP2, 5, 6, 9, 21, 22
26.80 3.63 2.32 -0.84 11.85 -1.38 3.58 3.18 7.04 12/06/2000
12/06/2000
1.34 1.34 N/A
N/A
Foreign Large Blend
Principal Global Investors
Diversified International R5 Fund (PINPX)   PMF, PFP, ##, TR3, FP2, 5, 21, 22
14.15 5.44 4.69 1.44 10.17 2.73 6.03 5.46 4.69 12/06/2000
12/06/2000
1.05 1.05 N/A
N/A
Principal Global Investors
International Equity Index R5 Fund (PIIQX)   PMF, PFP, ##, TR3, FP2, 2, 5, 28, 29, 30
11.48 5.32 4.86 1.61 8.83 4.15 5.84 5.19 4.94 12/30/2009
12/30/2009
0.56 0.56 N/A
N/A
Principal Global Investors
International Equity R5 Fund (PTPPX)   PMF, PFP, ##, TR3, 1, 5, 27
13.38 6.27 4.77 2.91 13.29 0.49 4.92 5.12 5.46 06/01/2004
12/29/2003
1.09 1.09 N/A
N/A
Global Real Estate
Principal Real Estate Inv
Global Real Estate Securities R5 Fund (PGRUX)   PMF, PFP, ##, TR3, FP2, 5, 14
9.30 2.20 1.43 -3.86 6.91 -4.32 -0.81 2.68 3.13 03/01/2016
10/01/2007
1.14 1.14 N/A
N/A
Conservative Allocation
Multiple Sub-Advisors
SAM Flexible Income R5 Portfolio (PFIFX)   PMF, PFP, ##, TR3, 10, 11, 20, 24, 25, 26, 27
12.12 1.67 1.50 1.53 7.66 1.59 2.89 3.72 5.43 01/16/2007
07/25/1996
0.94 0.94 N/A
N/A
Moderately Conservative Alloc
Multiple Sub-Advisors
SAM Conservative Balanced R5 Portfolio (PCBFX)   PMF, PFP, ##, TR3, 10, 20, 24, 25, 26, 27
12.38 2.15 2.06 2.40 10.44 2.95 4.63 4.98 5.40 01/16/2007
07/25/1996
1.00 1.00 N/A
N/A
Moderate Allocation
Multiple Sub-Advisors
SAM Balanced R5 Portfolio (PSBFX)   PMF, PFP, ##, TR3, 10, 20, 24, 25, 26, 27
16.11 2.74 2.68 3.52 14.61 5.09 6.98 6.80 7.25 01/16/2007
07/25/1996
1.04 1.04 N/A
N/A
Moderately Aggressive Alloc
Multiple Sub-Advisors
SAM Conservative Growth R5 Portfolio (PCWPX)   PMF, PFP, ##, TR3, 10, 20, 24, 25, 26, 27
18.84 3.23 3.29 4.41 17.80 6.71 8.93 8.39 7.89 01/16/2007
07/25/1996
1.07 1.07 N/A
N/A
Aggressive Allocation
Multiple Sub-Advisors
SAM Strategic Growth R5 Portfolio (PSGFX)   PMF, PFP, ##, TR3, 10, 11, 20, 24, 25, 26, 27
21.86 3.70 3.80 5.07 20.06 8.00 10.53 9.34 8.49 01/16/2007
07/25/1996
1.10 1.10 N/A
N/A
Target-Date Retirement
Multiple Sub-Advisors
Principal LifeTime Strategic Income R5 Fund (PLSPX)   PMF, PFP, ##, TR3, 4, 8, 10, 13, 20, 21, 22, 23, 24, 25, 26
11.31 1.89 1.80 1.73 8.16 2.29 3.30 3.71 4.17 03/01/2001
03/01/2001
0.77 0.77 N/A
N/A
Target-Date 2015
Multiple Sub-Advisors
Principal LifeTime 2015 R5 Fund (LTPFX)   PMF, PFP, ##, TR3, 8, 10, 13, 20, 23, 24, 25, 26
8.29 1.97 1.85 1.74 8.34 2.28 4.26 4.83 4.80 02/29/2008
02/29/2008
0.78 0.78 N/A
N/A
Target-Date 2020
Multiple Sub-Advisors
Principal LifeTime 2020 R5 Fund (PTBPX)   PMF, PFP, ##, TR3, 4, 8, 10, 13, 20, 21, 22, 23, 24, 25, 26
12.17 2.10 2.01 2.05 9.31 2.69 4.96 5.47 5.56 03/01/2001
03/01/2001
0.79 0.79 N/A
N/A
Target-Date 2025
Multiple Sub-Advisors
Principal LifeTime 2025 R5 Fund (LTPDX)   PMF, PFP, ##, TR3, 8, 10, 13, 20, 23, 24, 25, 26
11.13 2.30 2.21 2.27 10.20 3.10 5.70 6.11 5.72 02/29/2008
02/29/2008
0.82 0.82 N/A
N/A
Target-Date 2030
Multiple Sub-Advisors
Principal LifeTime 2030 R5 Fund (PTCPX)   PMF, PFP, ##, TR3, 4, 8, 10, 13, 20, 21, 22, 23, 24, 25, 26
14.19 2.60 2.53 2.60 11.51 3.55 6.47 6.69 6.09 03/01/2001
03/01/2001
0.83 0.83 N/A
N/A
Target-Date 2035
Multiple Sub-Advisors
Principal LifeTime 2035 R5 Fund (LTPEX)   PMF, PFP, ##, TR3, 8, 10, 13, 20, 23, 24, 25, 26
12.93 2.78 2.78 2.87 12.90 4.28 7.31 7.29 6.52 02/29/2008
02/29/2008
0.86 0.86 N/A
N/A
Target-Date 2040
Multiple Sub-Advisors
Principal LifeTime 2040 R5 Fund (PTDPX)   PMF, PFP, ##, TR3, 4, 8, 10, 13, 20, 21, 22, 23, 24, 25, 26
16.22 3.18 3.24 3.50 14.86 5.25 8.20 7.90 6.65 03/01/2001
03/01/2001
0.88 0.88 N/A
N/A
Target-Date 2045
Multiple Sub-Advisors
Principal LifeTime 2045 R5 Fund (LTRDX)   PMF, PFP, ##, TR3, 8, 10, 13, 20, 23, 24, 25, 26
14.47 3.43 3.50 3.86 16.09 5.91 8.85 8.32 7.14 02/29/2008
02/29/2008
0.91 0.91 N/A
N/A
Target-Date 2050
Multiple Sub-Advisors
Principal LifeTime 2050 R5 Fund (PTEFX)   PMF, PFP, ##, TR3, 4, 8, 10, 13, 20, 21, 22, 23, 24, 25, 26
17.45 3.62 3.74 4.17 17.17 6.43 9.32 8.64 6.81 03/01/2001
03/01/2001
0.92 0.92 N/A
N/A
Target-Date 2055
Multiple Sub-Advisors
Principal LifeTime 2055 R5 Fund (LTFPX)   PMF, PFP, ##, TR3, 8, 10, 13, 20, 23, 24, 25, 26
16.43 3.66 3.79 4.24 17.20 6.45 9.45 8.78 7.39 02/29/2008
02/29/2008
0.93 0.93 N/A
N/A
Target-Date 2060
Multiple Sub-Advisors
Principal LifeTime 2060 R5 Fund (PLTOX)   PMF, PFP, ##, TR3, 8, 10, 13, 20, 23, 24, 25, 26
17.79 3.73 3.79 4.17 17.16 6.44 9.56 8.81 9.36 03/01/2013
03/01/2013
0.93 0.93 N/A
N/A
Target-Date 2065+
Multiple Sub-Advisors
Principal LifeTime 2065 R5 Fund (PLJEX)   PMF, PFP, ##, TR3, 8, 10, 11, 13, 20, 23, 24, 25, 26
14.67 3.67 3.82 4.24 17.15 6.44 9.64 N/A 9.39 09/06/2017
09/06/2017
0.94 0.94 N/A
N/A
Multiple Sub-Advisors
Principal LifeTime 2070 R5 Fund (PLTFX)   PMF, PFP, ##, TR3, 8, 10, 11, 13, 20, 23, 24, 25, 26
12.95 3.68 3.76 4.20 17.12 N/A N/A N/A 16.99 03/01/2023
03/01/2023
0.98 4.23 02/28/2025
N/A
Short Term Bond
Principal Global Investors
Short-Term Income R5 Fund (PSIQX)   PMF, PFP, ##, TR3, 20, 27, 30, 31
12.00 0.47 0.48 1.09 4.75 2.52 1.77 1.90 3.39 07/12/2010
11/01/1993
0.63 0.63 N/A
N/A
Intermediate Core Bond
Principal Global Investors
Bond Market Index R5 Fund (PBIQX)   PMF, PFP, ##, TR3, FP2, 2, 20, 31
8.21 0.86 0.49 -0.19 1.61 -1.92 -0.99 0.72 1.83 12/30/2009
12/30/2009
0.39 0.39 N/A
N/A
Principal Global Investors
Core Fixed Income R5 Fund (PIOQX)   PMF, PFP, ##, TR3, FP2, 20, 27, 31
8.48 0.73 0.42 -0.18 1.85 -1.51 -0.55 1.38 6.45 03/01/2010
12/15/1975
0.61 0.61 N/A
N/A
Intermediate Core-Plus Bond
Principal Global Investors
Core Plus Bond R5 Fund (PBMPX)   PMF, PFP, ##, TR3, FP2, 20, 21, 22, 30, 31
8.93 0.93 0.59 0.05 1.48 -2.23 -0.54 1.22 3.25 12/06/2000
12/06/2000
0.69 0.69 N/A
N/A
Intermediate Government
Principal Global Investors
Government & High Quality Bond R5 Fund (PMREX)   PMF, PFP, ##, TR3, 20, 27, 31
8.87 0.71 0.42 0.08 1.44 -1.92 -1.43 0.32 5.09 12/15/2008
05/04/1984
0.67 0.76 02/28/2025
N/A
Inflation-Protected Bond
BlackRock Financial Mgmt, Inc.
Inflation Protection R5 Fund (PBPPX)   PMF, PFP, ##, TR3, 20, 30, 31
7.48 1.63 1.22 -0.16 2.23 -1.70 1.11 1.40 1.49 12/29/2004
12/29/2004
0.65 0.65 N/A
N/A
Preferred Stock
Spectrum
Principal Spectrum Preferred and Capital Sec Income R5 Fd (PPARX)   PMF, PFP, ##, TR3, 5, 7, 17, 27, 30
9.18 0.94 0.72 1.00 8.46 2.14 2.29 4.00 5.28 06/01/2004
05/01/2002
0.96 0.96 N/A
N/A

* Unannualized rate of return (change in value) since the start of the year.

Returns shown for periods of less than one year are not annualized. All returns displayed here are after Total Investment Expense of the investment option.

  * The Year-to-Date Change represents an unannualized rate of return (change in value) since the start of the year. All returns shown here are after the Total Investment Expense of the investment option.

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.

The Principal LifeTime portfolios, which are target date portfolios, invest in underlying Principal Funds. Each Principal LifeTime portfolio is managed toward a particular target (retirement) date, or the approximate date the participant or investor starts withdrawing money. As each Principal LifeTime portfolio approaches its target date, the investment mix becomes more conservative by increasing exposure to generally more conservative investment options and reducing exposure to typically more aggressive investment options. The asset allocation for each Principal LifeTime portfolio is regularly re-adjusted within a time frame that extends 10 years beyond the target date, at which point it reaches its most conservative allocation. Principal LifeTime portfolios assume the value of the investor's account will be withdrawn gradually during retirement. Neither the principal nor the underlying assets of the Principal LifeTime portfolios are guaranteed at any time, including the target date. Investment risk remains at all times.

Returns represent past performance and do not guarantee future results. Share price, principal value, and return will vary and you may have a gain or loss when shares are sold. Current performance may be lower or higher than quoted. For more performance information, including the most recent month-end performance, visit principal.com.

Carefully consider the Fund's objectives, risks, charges, and expenses. Contact your financial professional or visit principal.com for a prospectus, or summary prospectus if available, containing this and other information. Please read it carefully before investing. For information on this or other investment options, visit principal.com, or call 800-547-7754.

  PMF Sub-advised Investment Options include Principal Funds, Inc. mutual funds. Principal Funds, Inc is distributed by Principal Funds Distributor, Inc.

A mutual fund's share price and investment return will vary with market conditions, and the principal value of an investment when you sell your shares may be more or less than the original cost.

  PFP See the Principal Funds, Inc. prospectus for the full name of each Fund.

Investment and Insurance products are:
* Not insured by the FDIC or Any Federal Government Agency
* Not a Deposit or Other Obligation of, or Guaranteed by Credit Union or Bank
* Subject to Investment Risks, Including Possible Loss of the Principal Amount Invested

For a Mutual Fund investment option, Total Investment Expense gross equals the sum of (a) the total fund operating expenses plus (b) if the mutual fund invests in other mutual funds, the weighted-average management fee of those other mutual funds, as listed in the most recent prospectus. The actual Total Investment Expense may change if the mutual fund investment option's allocation of assets to other mutual funds changes.

Any operating expenses of a mutual fund or underlying mutual fund that are part of net Total Investment Expense are obtained from the mutual fund's most recent prospectus. The operating expenses shown as part of net Total Investment Expense include voluntary expense limits and fee credit.

Investment Options may charge a short-term trading or redemption fee to protect the interests of long-term Contractholders.

  ## Principal® charges the investment provider an annual Principal® Platform Connectivity Program (Program) fee of $1,000 for those investment option(s) with this designation. This Program fee helps to pay for a number of expenses incurred in connection with maintaining and adding investments to its platform, including but not limited to, expenses for IT systems, IT employees and required legal and compliance services. The investment provider will pay the Program fee for these investment options.

Insurance products and plan administrative services provided through Principal Life Insurance Company®. Securities offered through Principal Securities, Inc., 800-547-7754, member SIPC and/or independent broker-dealers. Referenced companies are members of the Principal Financial Group®, Des Moines, IA 50392. Certain investment options and contract riders may not be available in all states or U.S. commonwealths.

Investing involves risk, including possible loss of principal.

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.

Various mutual funds may have different types of fees disclosed in their prospectus, including sales loads (sales charge), exchange fees, account fees and purchase fees. The mutual funds made available by Principal Life Insurance Company for retirement plans through the Mutual Fund Network typically have many of these fees waived. Please review the Prospectus of the particular mutual fund, including the Statement of Additional Information, for a full understanding of the fees imposed by that mutual fund. Be sure to pay attention to the specific share class made available under the retirement plan because different share classes may have vastly different fee structures and schedules.

  TR3 Investment option limits transfer activity. Once the number of allowed transfers is met, participants are not allowed to transfer back into an investment option which they have transferred out of until the holding period elapses. All participant investment transfers and non-scheduled rebalancing activity are counted toward the number of transfers allowed. Contributions into the investment option are not impacted. Participants may still transfer out to different investment options or to money market or Guaranteed options.

The individual Principal LifeTime Funds may be combined with the Principal LifeTime Strategic Income Fund if the Board of Directors of Principal Funds, Inc., determines at the time that the combination is in the best interests of Fund shareholders.

  FP2 As a Featured Partner Investment Option, this fund may qualify a plan for discounted recordkeeping fees if a plan sponsor chooses to use it in a RetireView® model. The investment option is deemed by an independent 3(21) fiduciary as appropriate for use in a retirement plan through their proprietary screening process. The investment manager for this investment option is not paying an annual fee to Principal Life Insurance Company® to be included as a Featured Partner Investment Option.

Investment Types
Short-Term Fixed Income - This asset class is generally comprised of short-term, fixed-income investment options that are largely liquid and are designed to not lose much value. These investment options may include stable value, money market, short-term bond, and guaranteed interest accounts. They are considered to be among the least risky forms of investment options. However, they typically have a lower rate of return than equities or longer-term fixed income investment options over long periods of time. Depending on the objectives of the investment options, they may experience price fluctuations and may lose value.
Fixed Income - This asset class is generally comprised of investment options that invest in bonds, or debt of a company or government entity (including U.S. and Non- U.S.). It may also include real estate investment options that directly own property. These investment options typically carry more risk than short-term fixed income investment options (including, for real estate investment options, liquidity risk), but less overall risk than equities. All investment options in this category have the potential to lose value.
Balanced/Asset Allocation - This asset class is generally comprised of a combination of fixed income and equity investment options. These investment options may include balanced, asset allocation, target-date, and target-risk investment options. Although typically lower risk than investment options that invest solely in equities, all investment options in this category have the potential to lose value.
Large U.S. Equity - This asset class is generally comprised of investment options that invest in stocks, or shares of ownership in large, well-established, U.S. companies. These investment options typically carry more risk than fixed income investment options but have the potential for higher returns over longer time periods. They may be an appropriate choice for long-term investors who are seeking the potential for growth. All investment options in this category have the potential to lose value.
Small/Mid US Equity - This asset class is generally comprised of investment options that invest in stocks, or shares of ownership in small to medium-sized U.S. companies. These investment options typically carry more risk than larger U.S. equity investment options but have the potential for higher returns. They may be an appropriate choice for long-term investors who are seeking the potential for growth. All investment options in this category have the potential to lose value.
Global/International Equity - This asset class is comprised of investment options that invest in stocks, or shares of ownership in companies with their principal place of business or office outside the United States. These investment options often carry more risk than U.S. equity investment options but may have the potential for higher returns. They may be an appropriate choice for long-term investors who are seeking the potential for growth. All investment options in this category have the potential to lose value.

Footnotes:

  1. Small-cap and mid-cap investment options are subject to more fluctuation in value and may have additional risks than other investment options with stocks of larger, more stable companies.
  2. 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.
  3. This investment option is considered non-diversified, which means it, or the underlying mutual fund, can invest a higher percentage of its assets in fewer individual issuers than a diversified investment. As a result, changes in the value of a single investment could cause greater fluctuations, gain or loss, in the net asset value than would occur if it was more diversified.
  4. Balanced/Asset Allocation investment options will not be scored using our current methodology. Instead, our review for these investment strategies focuses on the structure and consistency of the underlying asset allocation models and the capital market assumptions used to support them. Today, all of the Balanced/Asset Allocation options available on our investment platform meet our due diligence standards.
  5. 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.
  6. Risk is magnified in emerging markets, which may lack established legal, political, business, or social structures to support securities markets.
  7. Spectrum Asset Management, Inc. is an affiliate of Principal Global Investors.
  8. Selecting a target date fund series is also authorizing any additional vintage which is launched by the investment provider for the series, and included in their associated materials, to be added to the plan after proper notification.
  9. Instances of high double-digit returns were achieved primarily during favorable market conditions and may not be sustainable over time.
  10. 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.
  11. Asset allocation does not guarantee a profit or protect against a loss. Investing in real estate, small-cap, international, and high-yield investment options involves additional risks.
  12. Small-cap and mid-cap stocks may have additional risks, including greater price volatility.
  13. There is no guarantee that a target date investment will provide adequate income at or through retirement. A target date fund's (TDF) glidepath is typically set to align with a retirement age of 65, which maybe your plan's normal retirement date (NRD). If your plan's NRD/age is different, the plan may default you to a TDF based on the plans NRD/Age. Participants may choose a TDF that does not match the plan's intended retirement date but instead aligns more to their investment risk. Compare the different TDF's to see how the mix of investments shift based on the TDF glide path.
  14. Real Estate investment options are subject to investment and liquidity risk and other risks inherent in real estate such as those associated with general and local economic conditions. Property values can decline due to environmental and other reasons. In addition, fluctuation in interest rates can negatively impact the performance of real estate investment options.
  15. The manager of the Fund, Principal Global Investors, invests between 10% and 40% of the Fund's assets in common stocks in an attempt to match or exceed the performance of the Fund's benchmark index for performance.
  16. S&P 500 is a trademark of S&P Global and is used under license. The product is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the product.
  17. Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. Lower-rated securities are subject to additional credit and default risks. Risks of preferred securities differ from risks inherent in other investments. In particular, in a bankruptcy preferred securities are senior to common stock but subordinate to other corporate debt. Contingent capital securities (CoCos) may have substantially greater risk than other securities in times of financial stress. An issuer or regulators decision to write down, write off or convert a CoCo may result in complete loss on an investment.
  18. S&P 600 is a trademark of S&P Global and is used under license. The product is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the product.
  19. S&P 400 is a trademark of S&P Global and is used under license. The product is not sponsored, endorsed, sold or promoted by Standard & Poor's and Standard & Poor's makes no representation regarding the advisability of investing in the product.
  20. Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure.
  21. These results are for the investment options selected by your plan, and may be different from the results for other plans.
  22. Past performance is not a guarantee of future results. Principal values and investment returns will fluctuate so that values upon redemption may be worth more or less than original costs. Total returns illustrated are net of investment expenses and management fees.
  23. Additional target date portfolios may be added to the Principal LifeTime portfolios series to accommodate plan participants with later normal retirement dates as they enter the workforce. Participants may also choose a portfolio with a target date that does not match the intended retirement date. Compare the different portfolios to see how the mix of investments might shift.
  24. International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards.
  25. The Investment Advisor will display "Multiple Sub-Advisors" for certain target-date, target-risk and specialty investment options where the assets are directed by the Investment Manager to multiple underlying investment options. These underlying investment options may use multiple sub-advisors who are responsible for the day-to-day management responsibilities.
  26. Asset allocation and diversification do not ensure a profit or protect against a loss. Additionally there is no guarantee this investment option will provide adequate income at or through retirement.
  27. These calculated returns reflect the historical performance of the oldest share class of the fund, adjusted to reflect a portion of the fees and expenses of this share class. For time periods prior to inception date of the fund, predecessor performance is reflected. Please see the fund's prospectus for more information on specific expenses, and the fund's most recent shareholder report for actual date of first sale. Expenses are deducted from income earned by the fund. As a result, dividends and investment results will differ for each share class.
  28. The International Equity Index investment option described herein is indexed to an MSCI index.
  29. The funds or securities referred to herein are not sponsored, endorsed, or promoted by MSCI, and MSCI bears no liability with respect to any such funds or securities or any index on which such funds or securities are based. The Principal International Equity Index Fund's Statement of Additional Information contains a more detailed description of the limited relationship MSCI has with Principal and any related funds.
  30. The risks associated with derivative investments include that the underlying security, interest rate, market index, or other financial asset will not move in the direction the Investment Adviser and/or Sub-Advisor anticipated, the possibility that there may be no liquid secondary market, the risk that adverse price movements in an instrument can result in a loss substantially greater than a fund's initial investment, the possibility that the counterparty may fail to perform its obligations; and the inability to close out certain hedged positions to avoid adverse tax consequences.
  31. 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.