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

MidCap Growth Fund III (A) (PPMGX)

Quick Facts Ticker: PPMGX Inception Date: 06/28/2005 Extended Performance Inception Date: 12/06/2000 Morningstar Category: Mid Cap Growth Total Net Assets (mil): $1,179.02	Investment Strategy    What's this? The investment seeks long-term growth of capital. The fund invests primarily in common stocks and other equity securities of U.S. companies with strong earnings growth potential. It normally invests at least 80% of assets in companies with market capitalizations similar to those of companies in the Russell Midcap Growth index.
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 694 Mid Cap Growth 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 % -4.85 -5.43 -2.73 9.50 -8.19 -0.15 --- -2.17 Including Sales Charge % -10.09 -10.60 -8.09 3.43 -9.91 -1.28 --- -2.74 Russell Midcap Growth Index % -4.30 -4.22 -1.10 11.58 -6.29 0.80 -2.50 --- Mid Cap Growth Category % -4.49 -4.35 -1.94 10.27 -7.09 0.52 -1.40 --- Morningstar Percentile Ranking** --- --- --- 58 60 61 --- --- # of Funds in Category 816 804 796 787 694 608 362 ---

* 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:	1.98%
Total Investment Expense - Net:	1.73%
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?

Turner Investment Partners

Mellon Capital Mgmt

Jacobs Levy Equity Management

Portfolio Managers

   What's this?

Christopher K. McHugh Since 12/06/2000 M.B.A. , St. Joseph's University

Tara Hedlund , CPA , CFA Since 10/01/2006 B.A. , Villanova University

Jason Schrotberger , CFA Since 10/01/2006 M.B.A. , University of Illinois

Adam T. Logan , CFA Since 11/21/2008 M.B.A. , University of Pittsburgh

Ken Levy , CFA Since 05/01/2009 M.B.A. , University of Pennsylvania (Wharton)

Bruce I. Jacobs Since 05/01/2009 Ph.D. , University of Pennsylvania (Wharton)

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

Ronald P. Gala , CFA Since 06/24/2009 M.B.A. , University of Pittsburgh

© 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 MidCap Growth 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 Midcap Growth Index is a market-weighted total return index that measures the performance of companies within the Russell Midcap Index having higher price-to-book ratios and higher forecasted growth values. 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. 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. Effective May 1, 2009, Jacobs Levy 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.