Request URL: http://www.principalfunds.com/InvestmentProfiles/index.faces
Investment Type: pifretail

LargeCap Value Fund III (A) (PPVAX)

Quick Facts Ticker: PPVAX Inception Date: 06/28/2005 Extended Performance Inception Date: 12/06/2000 Morningstar Category: Large Value Total Net Assets (mil): $1,579.85	Investment Strategy    What's this? The investment seeks long-term growth of capital. The fund generally invests at least 80% of assets in companies with large market capitalizations (those with market capitalizations similar to companies in the Russell 1000 Value index) at the time of purchase. It invests primarily in undervalued equity securities of companies that it believes offer above-average potential for earnings growth.
Morningstar Style Box™   as of 07/31/2010 What's this?	Overall Morningstar Star Rating™   as of 08/31/2010 What's this? Out of 1124 Large Value 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. Where gross and net expense ratios differ, Principal Management Corporation has contractually agreed to limit the investment option's expenses. Differences also may be due to Principal Management Corporation's decision to pay (through the same dates) 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 08/31/2010

1 Month 3 Month YTD 1 Year 3 Year 5 Year 10 Year Since      Inception* Excluding Sales Charge % -4.82 -4.82 -5.85 1.66 -14.72 -4.97 --- 0.72 Including Sales Charge % -10.04 -10.04 -11.05 -3.89 -16.31 -6.03 --- 0.10 Russell 1000 Value Index % -4.28 -3.55 -3.03 4.96 -10.61 -1.69 1.92 --- Large Value Category % -4.51 -3.32 -4.89 3.19 -9.95 -1.65 1.66 --- Morningstar Percentile Ranking** --- --- --- 65 95 94 --- --- # of Funds in Category 1318 1306 1278 1265 1124 943 488 ---

* Inception Date: 06/28/2005 ; Extended Performance Inception Date: 12/06/2000

**Morningstar percentile rankings are based on total returns.

Expenses

  as of 08/31/2010

Total Investment Expense - Gross:	1.88%
Total Investment Expense - Net:	1.14%
Waiver Date:	02/28/2011
Contractual Cap Date:	02/28/2011
Maximum Up-front Sales Charge:	5.50%
12b-1 Fee:	0.25%

Growth of $10,000

   What's this?

Represents performance for Class A shares adjusted for the maximum sales charge and assumes the reinvestment of distributions. Performance assumes reinvestment of all dividends and capital gains. Extended performance is calculated based on the historical performance of the investment option's oldest share class, adjusted for the fees and expenses of the share class shown. Periods of less than one year are not annualized.

Investment Subadvisors

   What's this?

Westwood Management Corp

AllianceBernstein LP

Portfolio Managers

   What's this?

John D. Phillips, Jr. , CFA Since 11/01/2002 M.B.A. , Harvard University

Christopher W. Marx Since 03/01/2006 M.B.A. , Stanford University

Scott Lawson , CFA Since 07/15/2008 M.B.A. , St. Louis University

Mark R. Freeman , CFA Since 07/15/2008 M.S. , Louisiana State University

Susan M. Byne Since 07/15/2008

Kellie R. Stark , CFA Since 07/15/2008 M.B.A. , University of Colorado-Boulder

Jay K. Singhania , CFA Since 07/15/2008 B.B.A. , University of Texas, Austin

Mariateresa Monaco Since 06/02/2009 M.B.A. , Massachusetts Institute of Technology

Joseph G. Paul Since 10/15/2009 M.S. , Massachusetts Institute of Technology

David Yuen , CFA Since 10/15/2009 B.S. , California Institute of Technology

© 2010 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. The full name of this investment option is Principal LargeCap Value Fund III (A). Before investing in mutual funds, investors should carefully consider the investment objectives, risks, charges and expenses of the funds. This and other information is contained in the free prospectus, which can be downloaded from our site, or by contacting us at 1.800.222.5852. Please read the prospectus carefully before investing. Principal Funds, Inc. is distributed by Principal Funds Distributor, Inc., member of the Principal Financial Group®. Principal Funds Distributor, Principal Shareholder Services, Principal Management Corporation and its affiliates, and Principal Funds, Inc. are collectively referred to as Principal Funds. Not FDIC Insured May Lose Value - Not a Deposit - No Bank Guarantee Not Insured by any Federal Government Agency

Russell 1000 Value Index is a market-capitalization weighted index of those firms in the Russell 1000 with lower price-to-book ratios and lower forecasted growth values. 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. 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. From March 1, 2006, to December 31, 2007, Bank of New York served as a sub-advisor for managing the cash portion of this investment option. Effective July 15, 2008, Westwood Management Corp. was added as an additional sub-advisor. Performance results displayed reflect all sub-advisors managing this portfolio during the time periods displayed. The manager of the Fund, Principal Management Corporation, 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. Effective July 1, 2010, this fund is closed to new investors. Effective August 5, 2010, this fund is closed to new assets.