Principal funds

Organized by Principal Life Insurance Company as of Dec. 31, 2016

Principal Funds, Inc.

Blue Chip Fund

Bond Market Index Fund

California Municipal Fund

Capital Securities Fund

Core Plus Bond Fund

Diversified International Fund

Diversified Real Asset Fund

Dynamic High Yield Explorer Fund

EDGE MidCap Fund

Equity Income Fund

Finisterre Unconstrained Emerging

Markets Bond Fund

Global Diversified Income Fund

Global Multi-Strategy Fund

Global Opportunities Fund

Global Opportunities Equity

Hedged Fund

Global Real Estate Securities Fund

Government & High Quality Bond Fund

High Yield Fund

High Yield Fund I

Income Fund

Inflation Protection Fund

International Emerging Markets Fund

International Equity Index Fund

International Fund I

International Small Company Fund

LargeCap Growth Fund

LargeCap Growth Fund I

LargeCap Growth Fund II

LargeCap S&P 500 Index Fund

LargeCap Value Fund

LargeCap Value Fund III

MidCap Fund

MidCap Growth Fund

MidCap Growth Fund III

MidCap S&P 400 Index Fund

MidCap Value Fund I

MidCap Value Fund III

Money Market Fund

Multi-Manager Equity Long/Short Fund

Opportunistic Municipal Fund

Origin Emerging Markets Fund

Overseas Fund

Preferred Securities Fund

Principal Capital Appreciation Fund

Principal LifeTime 2010 Fund

Principal LifeTime 2015 Fund

Principal LifeTime 2020 Fund

Principal LifeTime 2025 Fund

Principal LifeTime 2030 Fund

Principal LifeTime 2035 Fund

Principal LifeTime 2040 Fund

Principal LifeTime 2045 Fund

Principal LifeTime 2050 Fund

Principal LifeTime 2055 Fund

Principal LifeTime 2060 Fund

Principal LifeTime Strategic Income Fund

Principal LifeTime Hybrid 2015 Fund

Principal LifeTime Hybrid 2020 Fund

Principal LifeTime Hybrid 2025 Fund

Principal LifeTime Hybrid 2030 Fund

Principal LifeTime Hybrid 2035 Fund

Principal LifeTime Hybrid 2040 Fund

Principal LifeTime Hybrid 2045 Fund

Principal LifeTime Hybrid 2050 Fund

Principal LifeTime Hybrid 2055 Fund

Principal LifeTime Hybrid 2060 Fund

Principal LifeTime Hybrid Income Fund

Real Estate Allocation Fund

Real Estate Debt Income Fund

Real Estate Securities Fund

SAM Balanced Portfolio

SAM Conservative Balance Portfolio

SAM Conservative Growth Portfolio

SAM Flexible Income Portfolio

SAM Strategic Growth Portfolio

Short-Term Income Fund

SmallCap Fund

SmallCap Growth Fund I

SmallCap S&P 600 Index Fund

SmallCap Value Fund II

Small-MidCap Dividend Income Fund

SystematEx International Fund

SystematEx Large Value Fund

Tax-Exempt Bond Fund

Principal Exchange-Traded Funds

Principal EDGE Active Income ETF

Principal Healthcare Innovators

Index ETF

Principal Millennials Index ETF

Principal Price Setters Index ETF

Principal Shareholder Yield Index ETF

Principal U.S. Small Cap Index ETF

Principal Variable Contracts Funds, Inc.

The Principal Variable Contracts Fund investment options are available in certain variable annuity and variable life insurance contracts.

Mutual funds and variable contracts are distributed by Principal Funds Distributor, Inc., a member of the Principal Financial Group, Des Moines, Iowa 50392-0200. Phone 1-800-222-5852.