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Pricing & Performance: Share Classes

We generally offer Class A, C, and P shares of the funds and portfolios. Costs associated with buying, holding, and redeeming shares define many of the differences between the share classes.

Share Class Highlights

Class A Shares

  • Generally the most appropriate share class for long-term investors.
  • An up-front sales charge is assessed when shares are purchased.
  • The amount of the up-front sales charge decreases on purchases of $50,000 or more on equity funds, and $100,000 or more on most fixed-income funds. A sales charge will not be assessed on purchases in excess of $1,000,000 for equity funds and $500,0004 for most fixed-income funds.
  • Investors can use rights of accumulation (ROA) and statement of intent (SOI) agreements to reduce applicable sales charges.
  • Annual fees are lower than those applied to Class B and Class C shares.

Class A Shares of The Money Market Fund do not have an up-front sales charge.

Class B Shares

Principal Funds, Inc Class B share mutual funds were closed to new investors and new assets effective March 1, 2010.

  • A back-end sales charge (called a contingent deferred sales charge or CDSC) is assessed when shares are redeemed (sold). (There is no up-front sales charge.)
  • The amount of the back-end sales charge decreases for each year that the shares are held. After several years, the charge declines to 0%.
  • After the eighth year, Class B shares automatically convert to Class A shares.
  • Annual fees for Class B shares are higher than those applied to Class A shares.

Class C Shares

  • Generally appropriate for investors with short-to-medium-term investment horizons.
  • A back-end sales charge (called a contingent deferred sales charge or CDSC) is assessed if the shares are redeemed (sold) within 12 months of purchase. (There is no up-front sales charge.)
  • Annual fees are higher than those applied to Class A shares.

Class P Shares

Class P shares are available only to certain investors. See the prospectus for more information.

Maximum Sales Charges

The primary difference between share classes concerns the amount and timing of sales charges. The maximum applicable sales charge is as follows:

  • Equity Funds (except LargeCap S&P 500 Index Fund), SAM Portfolios (except SAM Flexible Income Portfolio), Principal LifeTime Funds (except Strategic Income Fund and Principal LifeTime 2010)
    • Class A Shares: 5.5% up-front sales charge1
    • Class B Shares: 5% contingent deferred sales charge2
    • Class C Shares: 1% contingent deferred sales charge3
  • LargeCap S&P 500 Index Fund
    • Class A Shares: 1.5% up-front sales charge1
    • Class B Shares: Not available
    • Class C Shares: 1% contingent deferred sales charge3
  • Diversified Real Asset Fund, Global Diversified Income Fund, and Global Multi-Strategy Fund
    • Class A Shares: 3.75% up-front sales charge1
    • Class B Shares: Not Available
    • Class C Shares: 1% contingent deferred sales charge3
  • Fixed-Income Funds, Municipal Funds, SAM Flexible Income Portfolio, Principal LifeTime Strategic Income Fund, (except Short-Term Income and Government & High Quality Bond Funds)
    • Class A Shares: 3.75% up-front sales charge1
    • Class B Shares: 5% contingent deferred sales charge2
    • Class C Shares: 1% contingent deferred sales charge3
  • Short-Term Income Fund, Income Fund, and Government & High Quality Bond Fund
    • Class A Shares: 2.25% up-front sales charge1
    • Class B Shares: Not available
    • Class C Shares: 1% contingent deferred sales charge3

1 Purchases in excess of $50,000 for equity funds, and $100,000 for fixed-income funds qualify for a reduced sales charge.
2 Contingent deferred sales charge declines over 5 years (5-5-4-3-2-0%).
3 Contingent deferred sales charge applies only to redemptions made during the first 12 months after purchase.
4 In addition to lower sales charges, the Principal fixed-income funds Class A shares are now available at NAV at the new lower breakpoint of $500,000 with a shorter CDSC of only 12 months.


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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

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