Principal Funds – Daily Pricing & Performance – A Shares - Month-End
Before investing, you should carefully consider a fund’s investment objectives, risks, charges, and expenses. Contact your financial professional, visit www.principalfunds.com to download a prospectus , or call 1-800-222-5852 to obtain a prospectus containing this and other information. Read the prospectus carefully before investing.
Investment results shown represent historical performance and do not guarantee future results. Your mutual fund's returns and principal values will 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 shown.
A Shares - Maximum up-front sales charges may apply. See the prospectus for details. Equity Funds, 5.5% (except LargeCap S&P 500 Index Fund, 1.5%); SAM Portfolios, 5.5% (except SAM Flexible Income Portfolio, 3.75%); Principal LifeTime Funds, 5.5% (except Principal LifeTime Strategic Income Fund, 3.75%); Specialty Funds, 3.75%; Fixed-Income Funds, 3.75% (except Short-Term Bond, Short-Term Income, Income, and Mortgage Securities, 2.25%, and Ultra Short Bond, 1%); Municipal Funds, 4.5%. Money Market does not have an up-front sales charge.
Principal Funds Class B shares closed to new investors and new assets effective March 1, 2010.
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.
The Annual Fund Operating Expenses tables in the prospectus reflect fees and expenses based on average net assets as of the fiscal year ended October 31, 2008, and do not reflect any change in expense ratios resulting from a change in assets under management since October 31, 2008. A decline in a Fund’s average net assets during the current fiscal year, as a result of market volatility or other factors, could cause the Fund’s expense ratio to be higher than the fees and expenses shown. Significant declines in a Fund’s net assets will increase your Fund’s total expense ratio, likely significantly. A Fund with a higher expense ratio means you could pay more if you buy or hold shares of the Fund. Expense ratios, as of October 31, 2009, are available in the Fund’s annual report, which is available on this website.
Not FDIC Insured
May Lose Value - Not a Deposit - No Bank Guarantee
Not Insured by any Federal Government Agency
For more performance information, including most recent month-end performance, visit www.principalfunds.com and click on Daily Prices & Performance .
View investment results: Month-End | Quarterly
This information must be accompanied by performance results for 1, 5, and 10 year/since inception time periods as of the most recent calendar quarter end.
See the Principal Funds, Inc. prospectus for the full name of each Fund.
Returns shown for periods of less than one year are not annualized.
Money Market investment options are not guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although these Funds seek to preserve the value of your investment at $1.00 per share, it is possible to lose money.
Price The price, or net asset value is the value of mutual fund shares determined by deducting the fund's liabilities from the total assets of the portfolio and dividing this amount by the number of shares outstanding. This cannot be relied upon as today's offering price.
YTD at NAV % - Measured from January 1, to the most recent established NAV date. Returns include the reinvestment of dividends and capital gains distributions at NAV.
Average Annual Total Return at Maximum Offering Price (MOP) - The highest price that may be charged for purchases of fund shares, including the maximum contingent deferred sales charge or the maximum front end sales charge, whichever is applicable. Returns include the reinvestment of dividends and capital gains distributions at NAV as of August 31, 2010.
Contingent Deferred Sales Charge (CDSC) - A deferred sales charge, which is paid at the time of redemption and generally decreases with the amount of time that fund shares are held before sale, ultimately declining to 0%. It is referred to as a contingent sales charge because of such declining schedule. The CDSC is also commonly called a back-end load. Performance displayed reflects the application of these charges.
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 associated with high yield bonds. | |
| 5. | Real estate investment options are subject to some risks inherent in real estate and Real Estate Investment Trusts, such as risks associated with general and local economic conditions. | |
| 7. | S&P 500 is a trademark of The McGraw-Hill Companies, Inc., and has been licensed for use by Principal Life Insurance Company and Principal Management Corporation. 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. | |
| 9. | 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. | |
| 10. | 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. | |
| 11. | 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. | |
| 12. | Fixed-income investment options are subject to interest rate risk, and their value will decline as interest rates rise. A portion of the Fund's income may be subject to state and/or local taxes, and it may be subject to federal alternative minimum tax (AMT) for certain investors. | |
| 13. | Small-cap and mid-cap stocks may have additional risks, including greater price volatility. | |
| 14. | 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. | |
| 15. | Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure. | |
| 16. | On January 2, 2008, the Principal Funds, Inc. Global Real Estate Securities Fund experienced a one-time gain of $0.05/share from an as of shareholder transaction which resulted in a positive impact on its performance and if the gain had been excluded, the return would be lower. | |
| 17. | Instances of high double-digit returns were achieved primarily during favorable market conditions and may not be sustainable over time. | |
| 18. | 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. | |
| 20. | Effective December 31, 2008, this portfolio is sub-advised by BlackRock Financial Management, Inc. Prior to December 31, 2008, the portfolio was sub-advised by Principal Global Investors. | |
| 21. | 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. | |
| 22. | Principal Management Corporation may voluntarily limit a certain portion of the fund's expenses collected from the Money Market Fund on a temporary basis. The Net Expense Ratio may be lower when expenses are limited. | |
| 23. | This investment option maintains a voluntary waiver which is reflected in the value displayed for Total Investment Expense - Net. This waiver may be discontinued at any time. | |
| 24. | 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. | |
| 25. | Formerly known as West Coast Equity Fund. | |
| 26. | 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. | |
| 27. | Effective June 26, 2009, this portfolio is sub-advised by Emerald Advisors and Essex. Prior to June 26, 2009, the portfolio was sub-advised by UBS Global Asset Management, Emerald Advisors and Essex. 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. | |
| 28. | Effective July 14, 2009, Brown Advisory was added as an additional sub-advisor. Performance results displayed reflect all sub-advisors managing this portfolio during the time periods displayed. | |
| 29. | Effective July 14, 2009, Montag & Caldwell was added as an additional sub-advisor. Performance results displayed reflect all sub-advisors managing this portfolio during the time periods displayed. | |
| 30. | Formerly known as Mortgage Securities Fund. | |
| 31. | Effective September 16, 2009, Guggenheim was added as an additional sub-advisor. Effective September 23, 2009, Tortoise Capital Advisors was added as an additional sub-advisor. Performance results displayed reflect all sub-advisors managing this portfolio during the time periods displayed. | |
| 32. | Effective October 1, 2009, ClearBridge Advisors was added as an additional sub-advisor. Performance results displayed reflect all sub-advisors managing this portfolio during the time periods displayed. | |
| 34. | 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. Additionally there is no guarantee this investment option will provide adequate income at or through retirement. | |
| 35. | This Principal LifeTime 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 Funds outlined in the prospectus dated March 1, 2010, the weighted average operating expenses of the underlying funds are: Principal LifeTime Strategic Income, 0.58%; Principal LifeTime 2010, 0.68%; Principal LifeTime 2020, 0.73%; Principal LifeTime 2030, 0.76%; Principal LifeTime 2040, 0.78%; Principal LifeTime 2050, 0.79%. While the operating expenses of the underlying mutual funds are not part of the Principal LifeTime Fund's operating expenses they are included in the Total Investment Expense. Performance results shown for the Principal LifeTime Fund reflect the application of these expenses. | |
| 36. | This Principal Strategic Asset Management Portfolio (SAM) indirectly bears its pro rata share of the management fees incurred by the underlying Principal Funds in which this portfolio invests. Based on the asset allocation of the SAM Portfolio outlined in the prospectus dated March 1, 2010, the weighted average operating expenses of the underlying funds are: Flexible Income, 0.59%; Conservative Balanced, 0.62%; Balanced, 0.67%; Conservative Growth, 0.70%; Strategic Growth, 0.71%. While the operating expenses of the underlying mutual funds are not part of the SAM Portfolio operating expenses they are included in the Total Investment Expense. Performance results shown for the SAM Portfolios reflect the application of these expenses. | |
| 37. | 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. | |
| 38. | Effective June 15, 2010, references to Van Kampen Asset Management as investment advisor was replaced with Invesco Advisors, Inc. This is a name change only and does not affect the management, objective, or strategy of this investment option. | |
| 39. | Effective July 1, 2010, this fund is closed to new investors. Effective August 5, 2010, this fund is closed to new assets. |