Principal Funds, Inc. Daily Net Asset Values Report - R6

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 fund expense figures are different, the investment manager has contractually agreed to limit the investment option's expense. Differences may also be shown due to the investment manager choosing to pay certain expenses that would normally be payable by the fund. The gross fund expense figure does not reflect any waivers or caps on the mutual fund. Performance shown reflects the application of net expenses of the fund.

Not FDIC Insured
May Lose Value - Not a Deposit - No Bank Guarantee
Not Insured by any Federal Government Agency

14 of 14
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
09/21/2018
Values
Average Annual Total Returns as of
08/31/2018
Total Investment Expense
Large Value
Principal Global Investors
SystematEx Large Value R6 Fund (PSLVX)  
13.60 5.84 1.75 5.40 13.99 N/A N/A N/A 13.51 09/22/2015
09/22/2015
0.42 1.12 12/30/2019
12/30/2019
Large Growth
Principal Global Investors
Blue Chip R6 Fund (PGBHX)   8
24.96 17.96 3.68 8.38 26.93 19.05 16.99 N/A 17.62 01/03/2017
06/14/2012
0.69 0.69 12/30/2019
12/30/2019
T. Rowe Price/Brown Advisory
LargeCap Growth I R6 Fund (PLCGX)   8, 15
16.85 19.65 4.50 8.37 30.22 19.22 17.26 13.67 6.77 11/25/2014
12/06/2000
0.60 0.62 02/28/2019
02/28/2019
Mid Cap Value
Principal Global/Barrow Hanley
MidCap Value III R6 Fund (PCMIX)   1, 8, 11, 15
20.60 -0.79 0.35 2.54 6.27 8.52 9.33 9.12 8.28 11/25/2014
12/06/2000
0.65 0.67 02/28/2019
02/28/2019
Mid Cap Blend
Principal Global Investors
EDGE MidCap R6 Fund (PEDMX)   8
15.14 11.28 1.68 6.04 20.69 N/A N/A N/A 17.52 01/03/2017
09/28/2015
0.77 0.81 12/30/2019
12/30/2019
Principal Global Investors
MidCap S&P 400 Index R6 Fund (PMAPX)   1, 2, 7, 8, 11, 20
23.17 8.39 3.18 5.38 19.76 14.30 12.64 10.58 8.95 11/22/2016
12/06/2000
0.17 0.18 02/28/2019
02/28/2019
Small Value
Vaughan Nelson/LA Capital/H&W
SmallCap Value II R6 Fund (PSMVX)   1, 8, 11, 15, 29
13.62 7.39 2.87 4.53 19.13 12.25 11.37 10.01 8.78 11/25/2014
06/01/2004
1.03 1.07 02/28/2019
02/28/2019
Small Blend
Principal Global Investors
SmallCap R6 Fund (PSMLX)   1, 8, 11, 24
27.70 13.48 4.93 7.30 29.08 14.24 13.99 10.27 9.25 11/22/2016
12/06/2000
0.77 1.20 02/28/2019
02/28/2019
Principal Global Investors
SmallCap S&P 600 Index R6 Fund (PSPIX)   1, 2, 6, 8, 11
31.25 15.58 4.82 9.26 32.11 18.70 14.76 11.67 10.37 11/22/2016
12/06/2000
0.17 0.18 02/28/2019
02/28/2019
Small Growth
AB/Brown/Emerald
SmallCap Growth I R6 Fund (PCSMX)   1, 8, 11, 15, 25
16.22 19.97 7.87 10.63 34.46 18.10 14.69 12.97 7.49 11/25/2014
12/06/2000
1.01 1.11 02/28/2019
02/28/2019
Real Estate
Principal Real Estate Inv
Real Estate Securities R6 Fund (PFRSX)   5, 8
24.16 3.41 2.55 6.97 6.95 9.78 11.17 8.52 11.07 11/22/2016
12/06/2000
0.82 0.82 02/28/2019
02/28/2019
Diversified Emerging Markets
Origin Asset Management LLP
Origin Emerging Markets R6 Fund (POEFX)   3
11.07 -10.00 -2.96 -8.90 -2.97 10.83 N/A N/A 3.87 01/23/2015
01/23/2015
1.24 1.24 12/30/2019
12/30/2019
Principal Global Investors
International Emerging Markets R6 Fund (PIIMX)   3, 8
26.42 -10.83 -4.43 -8.29 -4.93 9.85 4.11 2.18 8.45 11/22/2016
12/06/2000
1.21 1.23 02/28/2019
02/28/2019
Foreign Large Blend
Principal Global Investors
International Equity Index R6 Fund (PFIEX)   8
10.76 -0.37 -2.22 -0.84 3.80 6.75 5.35 N/A 4.96 01/03/2017
12/30/2009
0.30 0.33 12/30/2019
12/30/2019
Principal Global Investors
SystematEx International R6 Fund (PSTMX)   3
12.34 0.08 -2.42 -2.03 3.78 N/A N/A N/A 9.12 09/22/2015
09/22/2015
0.64 0.78 12/30/2019
12/30/2019
Foreign Large Growth
Origin Asset Management LLP
International I R6 Fund (PIIDX)   1, 3, 8, 22
15.94 -6.78 -2.32 -6.96 2.11 7.46 7.73 3.73 6.06 11/22/2016
12/29/2003
0.92 0.97 02/28/2019
02/28/2019
Foreign Small/Mid Blend
Principal Global Investors
International Small Company R6 Fund (PFISX)   8
12.48 -1.73 -1.58 -2.51 6.79 11.01 N/A N/A 6.71 01/03/2017
06/11/2014
1.09 1.10 12/30/2019
12/30/2019
Global Real Estate
Principal Real Estate Inv
Global Real Estate Securities R6 Fund (PGRSX)   3, 5, 8, 20
9.74 3.50 1.13 3.38 8.10 8.26 8.37 7.80 4.06 11/25/2014
10/01/2007
0.88 0.88 02/28/2019
02/28/2019
Allocation--30% to 50% Equity
Multiple Sub-Advisors
Global Diversified Income R6 Fund (PGBLX)   8, 14, 20
13.55 -1.23 -1.23 -0.32 0.09 5.24 5.20 N/A 10.30 06/12/2017
12/15/2008
0.75 0.76 02/28/2019
02/28/2019
Target-Date Retirement
Multiple Sub-Advisors
Principal LifeTime Hybrid Income R6 Fund (PLTYX)   8, 9, 13, 16, 18, 23, 28
10.45 0.67 0.67 1.36 2.82 4.34 N/A N/A 3.70 08/24/2015
09/30/2014
0.39 2.33 02/28/2019
02/28/2019
Target-Date 2015
Multiple Sub-Advisors
Principal LifeTime Hybrid 2015 R6 Fund (PLRRX)   8, 9, 13, 16, 18, 23, 28
11.13 2.02 0.91 2.02 5.75 6.83 N/A N/A 5.55 08/24/2015
09/30/2014
0.40 2.99 02/28/2019
02/28/2019
Target-Date 2020
Multiple Sub-Advisors
Principal LifeTime Hybrid 2020 R6 Fund (PLTTX)   8, 9, 13, 16, 18, 23, 28
11.46 2.78 1.06 2.51 7.12 7.94 N/A N/A 6.43 08/24/2015
09/30/2014
0.41 1.13 02/28/2019
02/28/2019
Target-Date 2025
Multiple Sub-Advisors
Principal LifeTime Hybrid 2025 R6 Fund (PLFTX)   8, 9, 13, 16, 18, 23, 28
11.82 3.41 1.11 2.70 8.30 8.86 N/A N/A 7.18 08/24/2015
09/30/2014
0.41 0.88 02/28/2019
02/28/2019
Target-Date 2030
Multiple Sub-Advisors
Principal LifeTime Hybrid 2030 R6 Fund (PLZTX)   8, 9, 13, 16, 18, 23, 28
12.05 3.79 1.26 3.00 9.37 9.74 N/A N/A 7.83 08/24/2015
09/30/2014
0.42 0.89 02/28/2019
02/28/2019
Target-Date 2035
Multiple Sub-Advisors
Principal LifeTime Hybrid 2035 R6 Fund (PLRTX)   8, 9, 13, 16, 18, 23, 28
12.40 4.47 1.48 3.43 10.54 10.60 N/A N/A 8.47 08/24/2015
09/30/2014
0.43 0.90 02/28/2019
02/28/2019
Target-Date 2040
Multiple Sub-Advisors
Principal LifeTime Hybrid 2040 R6 Fund (PLMTX)   8, 9, 13, 16, 18, 23, 28
12.58 4.83 1.54 3.64 11.34 11.24 N/A N/A 8.95 08/24/2015
09/30/2014
0.43 0.79 02/28/2019
02/28/2019
Target-Date 2045
Multiple Sub-Advisors
Principal LifeTime Hybrid 2045 R6 Fund (PLNTX)   8, 9, 13, 16, 18, 23, 28
12.76 5.11 1.60 3.76 11.92 11.69 N/A N/A 9.19 08/24/2015
09/30/2014
0.44 1.45 02/28/2019
02/28/2019
Target-Date 2050
Multiple Sub-Advisors
Principal LifeTime Hybrid 2050 R6 Fund (PLJTX)   8, 9, 13, 16, 18, 23, 28
12.85 5.41 1.59 3.81 12.42 12.06 N/A N/A 9.52 08/24/2015
09/30/2014
0.44 2.05 02/28/2019
02/28/2019
Target-Date 2055
Multiple Sub-Advisors
Principal LifeTime Hybrid 2055 R6 Fund (PLHTX)   8, 9, 13, 16, 18, 23, 28
13.04 5.59 1.72 4.01 12.81 12.37 N/A N/A 9.75 08/24/2015
09/30/2014
0.45 8.67 02/28/2019
02/28/2019
Target-Date 2060+
Multiple Sub-Advisors
Principal LifeTime Hybrid 2060 R6 Fund (PLKTX)   8, 9, 10, 13, 16, 18, 23, 28
13.07 5.66 1.64 4.00 13.05 12.60 N/A N/A 9.92 08/24/2015
09/30/2014
0.45 58.83 02/28/2019
02/28/2019
Multiple Sub-Advisors
Principal LifeTime Hybrid 2065 R6 Fund (PLHRX)   9, 10, 13, 16, 18, 23, 28
11.18 5.67 1.74 4.02 N/A N/A N/A N/A 13.38 09/06/2017
09/06/2017
0.44 107.34 02/28/2019
02/28/2019
World Allocation
Multiple Sub-Advisors
Diversified Real Asset R6 Fund (PDARX)   8, 17, 20
11.78 1.20 -0.93 -0.34 3.78 3.44 1.94 N/A 4.05 12/31/2014
03/16/2010
0.80 0.84 12/30/2019
12/30/2019
Long-Short Equity
Multiple Sub-Advisors
Multi-Manager Equity Long/Short R6 Fund (PGPMX)  
10.81 0.46 0.37 0.94 6.51 N/A N/A N/A 5.59 03/31/2016
03/31/2016
2.45 2.49 12/30/2019
12/30/2019
High Yield Bond
Principal Global Investors
High Yield R6 Fund (PHYFX)   4, 8, 12, 13
7.23 1.37 0.59 1.90 3.30 6.34 5.27 7.53 7.33 11/22/2016
04/08/1998
0.54 0.57 02/28/2019
02/28/2019
Intermediate-Term Bond
Principal Global Investors
Income R6 Fund (PICNX)   8, 12, 13
9.29 -0.42 0.66 0.72 0.71 2.96 3.15 5.09 7.28 11/25/2014
12/15/1975
0.48 0.48 02/28/2019
02/28/2019
Principal Real Estate Inv
Real Estate Debt Income R6 Fund (PRDHX)   8
9.42 1.01 1.36 1.52 0.44 2.36 N/A N/A 1.84 01/03/2017
12/31/2014
0.57 0.64 12/30/2019
12/30/2019
Preferred Stock
Spectrum
Preferred Securities R6 Fund (PPREX)   8, 27
9.97 -0.72 0.53 1.40 0.69 5.08 6.30 8.37 6.05 01/03/2017
05/01/2002
0.72 0.72 12/30/2019
12/30/2019
Multialternative
Multiple Sub-Advisors
Global Multi-Strategy R6 Fund (PGLSX)   8, 19, 20
11.24 -0.44 0.18 0.99 1.25 2.71 3.21 N/A 3.31 06/12/2017
10/24/2011
2.15 2.19 12/30/2019
12/30/2019

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 fund expense figures are different, the investment manager has contractually agreed to limit the investment option's expense. Differences may also be shown due to the investment manager choosing to pay certain expenses that would normally be payable by the fund. The gross fund expense figure does not reflect any waivers or caps on the mutual fund. Performance shown reflects the application of net expenses of the fund.

Not FDIC Insured
May Lose Value - Not a Deposit - No Bank Guarantee
Not Insured by any Federal Government Agency

* 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.

Insurance products and plan administrative services, if applicable, are provided by Principal Life Insurance Company. Principal mutual funds are part of the Principal Funds, Inc. series. 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.

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 800-547-7754. Read the prospectus carefully before investing.

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.
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. 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.
  4. High yield investment options are subject to greater credit risk and volatility that is associated with high yield bonds.
  5. 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.
  6. 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.
  7. 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.
  8. 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.
  9. 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.
  10. 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.
  11. Small-cap and mid-cap stocks may have additional risks, including greater price volatility.
  12. 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.
  13. Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure.
  14. 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 associated with preferred securities differ from risks inherent with other investments. In particular, in the event of bankruptcy, a company's preferred securities are senior to common stock but subordinated to all other types of corporate debt. International investing involves increased risks due to currency fluctuations, political or social instability, and differences in accounting standards, these risks are magnified in emerging markets. REIT securities are subject to risk factors associated with the real estate industry and tax factors of REIT registration.
  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. 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.
  17. 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. or any other government entity. Concentrating investments in natural resources industries can be affected significantly by events relating to those industries, such as variations in the commodities markets, weather, disease, embargoes, international, political and economic developments, the success of exploration projects, tax and other government regulations and other factors. Investment in derivatives entails specific risks relating to liquidity, leverage and credit that may reduce returns and/or increase volatility. REIT securities are subject to risk factors associated with the real estate industry and tax factors of REIT registration. An MLP that invests in a particular industry (e.g., oil and gas) may be harmed by detrimental economic events within that industry. As partnerships, MLPs may be subject to less regulation (and less protection for investors) under state laws than corporations. In addition, MLPs may be subject to state taxation in certain jurisdictions, which may reduce the amount of income paid by an MLP to its investors.
  18. 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.
  19. This fund utilizes alternative investment strategies such as arbitrage, leverage, derivatives, and shorting securities in addition to traditional investments. Investment risk may be magnified with the use of these alternative strategies. In addition, securities such as bonds, equities, commodities, international and emerging market securities, and currencies are used to implement the investment strategy. These investments are subject to risks associated with market and interest rate movements. The fund is considered non-diversified which may make it more susceptible to price volatility if the fund does not meet its objective. Due to the nature of the investment process, investors should not expect significant outperformance during market rallies. Additional risks are included in the funds prospectus. It is possible to lose money when investing in the fund.
  20. 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.
  22. Effective June 3, 2014, this portfolio is sub-advised by Origin Asset Management. Prior to June 3, 2014, this portfolio was sub-advised by Fidelity and Schroders. The portfolio has had various sub-advisors since its inception. Performance results displayed reflect all sub-advisors managing this portfolio during the time periods displayed.
  23. International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards.
  24. Formerly known as SmallCap Blend Fund.
  25. Effective September 30, 2016, this portfolio is sub-advised by AB LP, Brown Advisory and Emerald Advisors, Inc. Prior to September 30, 2016, the portfolio was sub-advised by AB LP, Brown Advisory, Emerald Advisors, Inc. and Columbus Circle Investors. The portfolio has had various sub-advisors since its inception. Performance results displayed reflect all sub-advisors managing this portfolio during the time periods displayed.
  27. Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. 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.
  28. This Principal LifeTime Hybrid Fund indirectly bears its pro rata share of the management fees incurred by the underlying Principal Funds in which this fund invests. Based on the asset allocation of the Principal LifeTime Hybrid Funds outlined in the prospectus dated March 1, 2018, the weighted average operating expenses of the underlying funds are: Principal LifeTime Hybrid Income, 0.37%; Principal LifeTime Hybrid 2015, 0.38%; Principal LifeTime Hybrid 2020, 0.39%; Principal LifeTime Hybrid 2025, 0.39%; Principal LifeTime Hybrid 2030, 0.40%; Principal LifeTime Hybrid 2035, 0.41%; Principal LifeTime Hybrid 2040, 0.41%; Principal LifeTime Hybrid 2045, 0.42%; Principal LifeTime Hybrid 2050, 0.42%; Principal LifeTime Hybrid 2055, 0.43%; Principal LifeTime Hybrid 2060, 0.43%; Principal LifeTime Hybrid 2065, 0.42%. While the operating expenses of the underlying mutual funds are not part of the Principal LifeTime Hybrid Fund's operating expenses they are included in the Total Investment Expense. Performance results shown for the Principal LifeTime Hybrid Fund reflect the application of these expenses.
  29. Effective June 29, 2018, this portfolio is sub-advised by Vaughn Nelson, LA Capital and Hotchkis & Wiley. Prior to June 29, 2018, the portfolio was sub-advised by DFA, Vaughn Nelson and LA Capital. The portfolio has had various sub-advisors since its inception. Performance results displayed reflect all sub-advisors managing this portfolio during the time periods displayed.