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Three Principal Funds Take Top Lipper Honors

Three Principal Funds won top honors from Lipper Inc., a leading provider of ratings and independent research. The Lipper Fund Awards program highlights funds that have excelled in delivering consistently strong risk-adjusted performance, relative to peers. The winners are:

The Principal Equity Income Fund has focused on conservative, income-oriented investments for nearly 70 years. It was one of the first 50 mutual funds launched in the United States.

The Principal High Yield Fund¹ invests in high-yield, fixed-income securities and has been consistently praised over the past 12 years.

The Principal Capital Appreciation Fund is a multi-cap fund that seeks attractive investment opportunities, at comparatively low current prices, throughout the U.S., without style or size constraints.

You're in Good Company with Principal Funds

If you would like more information about these funds, contact your financial professional.

¹ Not all investors may be eligible to invest in the Institutional class of shares.

Past performance is no guarantee of future results. Funds shown may have recent negative performance. Please see principalfunds.com, or call 800-222-5852, for current performance information.

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.

Small-cap and mid-cap stocks may have additional risks, including greater price volatility.

The calculation periods extend over 36, 60, and 120 months. The highest Lipper Leader for Consistent Return (effective return) value within each eligible classification determines the fund classification winner over 3, 5, or 10 years. Equity Income Fund - 3 yrs: 101/220 funds, 5 yrs: 9/170 funds, 10 yrs: 1/100 funds. High Yield Fund - 3 yrs: 149/390 funds, 5 yrs: 1/337 funds, 10 yrs: 51/198 funds. Capital Appreciation Fund - 3 yrs: 32/622 funds, 5 yrs: 25/442 funds, 10 yrs: 1/184 funds.

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To obtain a prospectus, download online or call Customer Service at 1.800.222.5852

While this communication may be used to promote or market a transaction or an idea that is discussed in the publication, it is intended to provide general information about the subject matter covered and is provided with the understanding that The Principal^® is not rendering legal, accounting, or tax advice. It is not a marketed opinion and may not be used to avoid penalties under the Internal Revenue Code. You should consult with appropriate counsel or other advisors on all matters pertaining to legal, tax, or accounting obligations and requirements. For more information about our funds, including their full names, please see the Principal Funds, Inc. prospectus or call Customer Service at 1.800.222.5852.

A mutual fund's share price and investment return will vary with market conditions, and the principal value of an investment when you sell your shares may be more or less than the original cost.

This Web site was created and is maintained by Principal Funds Distributor, Inc. exclusively, and not by the Directors of the funds.

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 or NCUA/NCUSIF insured - May lose value - No bank guarantee - Not a deposit - Not insured by any federal government agency