Pricing & Performance

*MorningstarĀ® Ratings as of

Asset Allocation - Target Date

Fund Prices
(as of ) (as of ) (as of ) (as of )

$ Chg
% Chg
% YTD
0.02 0.02 NA NA
0.15 0.15 NA NA
1.09 1.09 4.91 0.95

Average Annual Total Returns (%)
(as of ) (as of ) (as of ) (as of )

1 yr
3 yr
5 yr
10 yr
Since
Incep
Incep
Date
4.91 4.91 0.95 0.95
2.63 2.63 1.34 1.34
5.92 5.92 5.11 5.11
3.14 3.14 2.75 2.75
4.27 4.27 4.01 4.01

Fund Expenses

Net Expense
Gross Expense
Contractual Cap
Waiver Exp. Date
1.01
1.05

Morningstar Rating

Category: Target-Date 2000-2010
2 stars 2 stars
84 funds
3 stars 3 stars
69 funds
1 stars 1 stars
40 funds
2 stars 2 stars
84 funds

Fund Prices
(as of ) (as of ) (as of ) (as of )

$ Chg
% Chg
% YTD
0.03 0.03 NA NA
0.23 0.23 NA NA
1.44 1.44 5.41 -0.38

Average Annual Total Returns (%)
(as of ) (as of ) (as of ) (as of )

1 yr
3 yr
5 yr
10 yr
Since
Incep
Incep
Date
5.41 5.41 -0.38 -0.38
2.98 2.98 1.06 1.06
7.59 7.59 6.38 6.38
3.62 3.62 3.04 3.04
4.80 4.80 4.43 4.43

Fund Expenses

Net Expense
Gross Expense
Contractual Cap
Waiver Exp. Date
1.06
1.08

Morningstar Rating

Category: Target-Date 2020
2 stars 2 stars
176 funds
4 stars 4 stars
146 funds
2 stars 2 stars
67 funds
3 stars 3 stars
176 funds

Fund Prices
(as of ) (as of ) (as of ) (as of )

$ Chg
% Chg
% YTD
0.03 0.03 NA NA
0.22 0.22 NA NA
1.66 1.66 5.41 -0.41

Average Annual Total Returns (%)
(as of ) (as of ) (as of ) (as of )

1 yr
3 yr
5 yr
10 yr
Since
Incep
Incep
Date
5.41 5.41 -0.41 -0.41
3.16 3.16 1.24 1.24
8.50 8.50 7.27 7.27
3.81 3.81 3.22 3.22
4.85 4.85 4.48 4.48

Fund Expenses

Net Expense
Gross Expense
Contractual Cap
Waiver Exp. Date
1.09
1.13

Morningstar Rating

Category: Target-Date 2030
2 stars 2 stars
176 funds
3 stars 3 stars
146 funds
3 stars 3 stars
67 funds
3 stars 3 stars
176 funds

Fund Prices
(as of ) (as of ) (as of ) (as of )

$ Chg
% Chg
% YTD
0.04 0.04 NA NA
0.29 0.29 NA NA
1.91 1.91 5.03 -0.77

Average Annual Total Returns (%)
(as of ) (as of ) (as of ) (as of )

1 yr
3 yr
5 yr
10 yr
Since
Incep
Incep
Date
5.03 5.03 -0.77 -0.77
3.17 3.17 1.23 1.23
9.24 9.24 8.01 8.01
3.87 3.87 3.28 3.28
4.95 4.95 4.58 4.58

Fund Expenses

Net Expense
Gross Expense
Contractual Cap
Waiver Exp. Date
1.11
1.19

Morningstar Rating

Category: Target-Date 2040
2 stars 2 stars
176 funds
3 stars 3 stars
146 funds
3 stars 3 stars
67 funds
3 stars 3 stars
176 funds

Fund Prices
(as of ) (as of ) (as of ) (as of )

$ Chg
% Chg
% YTD
0.04 0.04 NA NA
0.29 0.29 NA NA
2.06 2.06 5.20 -0.56

Average Annual Total Returns (%)
(as of ) (as of ) (as of ) (as of )

1 yr
3 yr
5 yr
10 yr
Since
Incep
Incep
Date
5.20 5.20 -0.56 -0.56
3.27 3.27 1.33 1.33
9.71 9.71 8.48 8.48
3.95 3.95 3.36 3.36
4.72 4.72 4.35 4.35

Fund Expenses

Net Expense
Gross Expense
Contractual Cap
Waiver Exp. Date
1.13
1.25

Morningstar Rating

Category: Target-Date 2050
2 stars 2 stars
168 funds
3 stars 3 stars
129 funds
3 stars 3 stars
23 funds
3 stars 3 stars
168 funds

Fund Prices
(as of ) (as of ) (as of ) (as of )

$ Chg
% Chg
% YTD
0.01 0.01 NA NA
0.08 0.08 NA NA
0.75 0.75 4.48 0.54

Average Annual Total Returns (%)
(as of ) (as of ) (as of ) (as of )

1 yr
3 yr
5 yr
10 yr
Since
Incep
Incep
Date
4.48 4.48 0.54 0.54
2.43 2.43 1.14 1.14
4.25 4.25 3.45 3.45
2.70 2.70 2.30 2.30
3.73 3.73 3.48 3.48

Fund Expenses

Net Expense
Gross Expense
Contractual Cap
Waiver Exp. Date
0.96
1.04

Morningstar Rating

Category: Target-Date Retirement
2 stars 2 stars
133 funds
3 stars 3 stars
113 funds
2 stars 2 stars
58 funds
2 stars 2 stars
133 funds

Disclosures

An investment in the Fund is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund's sponsor has no legal obligation to provide financial support to the Fund, and you should not expect that the sponsor will provide financial support to the Fund at any time

Not FDIC Insured
May Lose Value - Not a Deposit - No Bank Guarantee

Not Insured by any Federal Government Agency

Investors should carefully consider a fund's investment objectives, risks, charges, and expenses prior to 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 Income, Short-Term Income, and Government & High Quality Bond, 2.25%); Municipal Funds, 4.5%. Money Market does not have an up-front sales charge.

Principal Management Corporation is the Investment Advisor of all funds included in the Principal Funds, Inc. Principal Management Corporation has selected sub-advisors, whom they oversee, to manage day-to-day investment decisions/operations.

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.

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, 2016 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 previous month end or previous quarter end.

Morningstar Ratings are as of previous month end.

Since Inception return represents Average Annual Total Return at Maximum Offering Price (MOP) from Extended Performance Inception Date as of previous month end or previous quarter end.

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.

The 7-Day Yield % more closely reflects the current earnings of this money market investment option than the total return displayed.

The Morningstar Rating™ for funds, or "star rating", is calculated for managed products (including mutual funds, variable annuity and variable life subaccounts, exchange-traded funds, closed-end funds, and separate accounts) with at least a three-year history. Exchange-traded funds and open-ended mutual funds are considered a single population for comparative purposes. It is calculated based on a Morningstar Risk-Adjusted Return measure that accounts for variation in a managed product's monthly excess performance, placing more emphasis on downward variations and rewarding consistent performance. The top 10% of products in each product category receive 5 stars, the next 22.5% receive 4 stars, the next 35% receive 3 stars, the next 22.5% receive 2 stars, and the bottom 10% receive 1 star. The Overall Morningstar Rating for a managed product is derived from a weighted average of the performance figures associated with its three-, five-, and 10-year (if applicable) Morningstar Rating metrics. The weights are: 100% three-year rating for 36-59 months of total returns, 60% five-year rating/40% three-year rating for 60-119 months of total returns, and 50% 10-year rating/30% five-year rating/20% three-year rating for 120 or more months of total returns. While the 10-year overall star rating formula seems to give the most weight to the 10-year period, the most recent three-year period actually has the greatest impact because it is included in all three rating periods. Past performance does not guarantee future results. Ā© 2016 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.


Footnotes

11 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. For time periods prior to inception date of the fund, predecessor performance is reflected. 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.


12 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.


18 Fixed-income and asset allocation investment options that invest in mortgage securities are subject to increased risk due to real estate exposure.


24 Asset allocation and diversification do not ensure a profit or protect against a loss. Additionally there is no guarantee this investment option will provide adequate income at or through retirement.


47 International and global investing involves greater risks such as currency fluctuations, political/social instability and differing accounting standards.


51 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, 2016, the weighted average operating expenses of the underlying funds are: Principal LifeTime Strategic Income, 0.58%; Principal LifeTime 2010, 0.63%; Principal LifeTime 2020, 0.68%; Principal LifeTime 2030, 0.71%; Principal LifeTime 2040, 0.73%; Principal LifeTime 2050, 0.75%. 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.