# EDGAR Filing Document

**Accession Number:** 0000012601
**File Stem:** 0000012601-26-000120
**Filing Date:** 2026-2
**Character Count:** 1468266
**Document Hash:** f3b24d83d2055848d58e571d7216629a
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000012601-26-000120.hdr.sgml**: 20260226

**ACCESSION NUMBER**: 0000012601-26-000120

**CONFORMED SUBMISSION TYPE**: N-CSR

**PUBLIC DOCUMENT COUNT**: 67

**CONFORMED PERIOD OF REPORT**: 20251231

**FILED AS OF DATE**: 20260226

**DATE AS OF CHANGE**: 20260226

**EFFECTIVENESS DATE**: 20260226

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PRINCIPAL VARIABLE CONTRACTS FUNDS INC
- **CENTRAL INDEX KEY:** 0000012601

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **FISCAL YEAR END:** 1231

**FILING VALUES:**
- **FORM TYPE:** N-CSR
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-01944
- **FILM NUMBER:** 26684768

**BUSINESS ADDRESS:**
- **STREET 1:** 711 HIGH STREET
- **CITY:** DES MOINES
- **STATE:** IA
- **ZIP:** 50392
- **BUSINESS PHONE:** 515-247-5477

**MAIL ADDRESS:**
- **STREET 1:** PRINCIPAL FINANCIAL GROUP
- **CITY:** DES MOINES
- **STATE:** IA
- **ZIP:** 50392

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PRINCIPAL VARIABLE CONTRACTS FUND INC
- **DATE OF NAME CHANGE:** 19980617

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PRINCIPAL CAPITAL ACCUMULATION FUND INC
- **DATE OF NAME CHANGE:** 19920703

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PRINCOR INVESTMENT FUND INC
- **DATE OF NAME CHANGE:** 19880906

## Series and Classes Contracts Data

### Global Emerging Markets Account (formerly, International Emerging Markets Account) (Series ID: S000007656)

| Class ID   | Class Name                              | Ticker Symbol   |
|:---|:---|:---|
| C000020904 | Global Emerging Markets Account Class 1 |  |

### LargeCap S&P 500 Index Account (Series ID: S000007660)

| Class ID   | Class Name                             | Ticker Symbol   |
|:---|:---|:---|
| C000020908 | LargeCap S&P 500 Index Account Class 1 |  |
| C000155998 | LargeCap S&P 500 Index Account Class 2 |  |

### MidCap Account (Series ID: S000007662)

| Class ID   | Class Name             | Ticker Symbol   |
|:---|:---|:---|
| C000020910 | MidCap Account Class 1 |  |
| C000079602 | MidCap Account Class 2 |  |

### Principal LifeTime 2020 Account (Series ID: S000007668)

| Class ID   | Class Name                              | Ticker Symbol   |
|:---|:---|:---|
| C000020916 | Principal LifeTime 2020 Account Class 1 |  |

### Principal LifeTime 2030 Account (Series ID: S000007669)

| Class ID   | Class Name                              | Ticker Symbol   |
|:---|:---|:---|
| C000020917 | Principal LifeTime 2030 Account Class 1 |  |

### Principal LifeTime 2040 Account (Series ID: S000007670)

| Class ID   | Class Name                              | Ticker Symbol   |
|:---|:---|:---|
| C000020918 | Principal LifeTime 2040 Account Class 1 |  |

### Principal LifeTime 2050 Account (Series ID: S000007671)

| Class ID   | Class Name                              | Ticker Symbol   |
|:---|:---|:---|
| C000020919 | Principal LifeTime 2050 Account Class 1 |  |

### Principal LifeTime Strategic Income Account (Series ID: S000007672)

| Class ID   | Class Name                                          | Ticker Symbol   |
|:---|:---|:---|
| C000020920 | Principal LifeTime Strategic Income Account Class 1 |  |

### Real Estate Securities Account (Series ID: S000007673)

| Class ID   | Class Name                             | Ticker Symbol   |
|:---|:---|:---|
| C000020921 | Real Estate Securities Account Class 1 |  |
| C000038552 | Real Estate Securities Account Class 2 |  |

### SmallCap Account (Series ID: S000007675)

| Class ID   | Class Name               | Ticker Symbol   |
|:---|:---|:---|
| C000020923 | SmallCap Account Class 1 |  |
| C000152597 | SmallCap Account Class 2 |  |

### Core Plus Bond Account (Series ID: S000007677)

| Class ID   | Class Name                     | Ticker Symbol   |
|:---|:---|:---|
| C000020925 | Core Plus Bond Account Class 1 |  |

### Diversified International Account (Series ID: S000007681)

| Class ID   | Class Name                                | Ticker Symbol   |
|:---|:---|:---|
| C000020929 | Diversified International Account Class 1 |  |

### LargeCap Growth Account I (Series ID: S000007682)

| Class ID   | Class Name                        | Ticker Symbol   |
|:---|:---|:---|
| C000020930 | LargeCap Growth Account I Class 1 |  |

### Equity Income Account (Series ID: S000014083)

| Class ID   | Class Name                    | Ticker Symbol   |
|:---|:---|:---|
| C000038528 | Equity Income Account Class 1 |  |
| C000038529 | Equity Income Account Class 2 |  |

### Strategic Asset Management Strategic Growth Portfolio (Series ID: S000014084)

| Class ID   | Class Name                                                    | Ticker Symbol   |
|:---|:---|:---|
| C000038530 | Strategic Asset Management Strategic Growth Portfolio Class 1 |  |
| C000038531 | Strategic Asset Management Strategic Growth Portfolio Class 2 |  |

### Principal Capital Appreciation Account (Series ID: S000014085)

| Class ID   | Class Name                                     | Ticker Symbol   |
|:---|:---|:---|
| C000038532 | Principal Capital Appreciation Account Class 1 |  |
| C000038533 | Principal Capital Appreciation Account Class 2 |  |

### Government & High Quality Bond Account f/k/a Mortgage Securities Account (Series ID: S000014088)

| Class ID   | Class Name                                     | Ticker Symbol   |
|:---|:---|:---|
| C000038539 | Government & High Quality Bond Account Class 1 |  |

### Short-Term Income Account (Series ID: S000014089)

| Class ID   | Class Name                        | Ticker Symbol   |
|:---|:---|:---|
| C000038541 | Short-Term Income Account Class 1 |  |

### Strategic Asset Management Balanced Portfolio (Series ID: S000014090)

| Class ID   | Class Name                                            | Ticker Symbol   |
|:---|:---|:---|
| C000038542 | Strategic Asset Management Balanced Portfolio Class 2 |  |
| C000038543 | Strategic Asset Management Balanced Portfolio Class 1 |  |

### Strategic Asset Management Conservative Balanced Portfolio (Series ID: S000014091)

| Class ID   | Class Name                                                         | Ticker Symbol   |
|:---|:---|:---|
| C000038544 | Strategic Asset Management Conservative Balanced Portfolio Class 2 |  |
| C000038545 | Strategic Asset Management Conservative Balanced Portfolio Class 1 |  |

### Strategic Asset Management Conservative Growth Portfolio (Series ID: S000014092)

| Class ID   | Class Name                                                       | Ticker Symbol   |
|:---|:---|:---|
| C000038546 | Strategic Asset Management Conservative Growth Portfolio Class 1 |  |
| C000038547 | Strategic Asset Management Conservative Growth Portfolio Class 2 |  |

### Strategic Asset Management Flexible Income Portfolio (Series ID: S000014093)

| Class ID   | Class Name                                                   | Ticker Symbol   |
|:---|:---|:---|
| C000038548 | Strategic Asset Management Flexible Income Portfolio Class 1 |  |
| C000038549 | Strategic Asset Management Flexible Income Portfolio Class 2 |  |

### Diversified Balanced Account (Series ID: S000027170)

| Class ID   | Class Name                           | Ticker Symbol   |
|:---|:---|:---|
| C000081996 | Diversified Balanced Account Class 2 |  |
| C000186093 | Diversified Balanced Account Class 1 |  |

### Diversified Growth Account (Series ID: S000027171)

| Class ID   | Class Name                         | Ticker Symbol   |
|:---|:---|:---|
| C000081997 | Diversified Growth Account Class 2 |  |

### Bond Market Index Account (Series ID: S000036925)

| Class ID   | Class Name                        | Ticker Symbol   |
|:---|:---|:---|
| C000112990 | Bond Market Index Account Class 1 |  |

### Diversified Income Account (Series ID: S000036926)

| Class ID   | Class Name                         | Ticker Symbol   |
|:---|:---|:---|
| C000112991 | Diversified Income Account Class 2 |  |

### Principal LifeTime 2060 Account (Series ID: S000040678)

| Class ID   | Class Name                              | Ticker Symbol   |
|:---|:---|:---|
| C000126088 | Principal LifeTime 2060 Account Class 1 |  |

### LargeCap S&P 500 Managed Volatility Index Account (Series ID: S000042784)

| Class ID   | Class Name                                                | Ticker Symbol   |
|:---|:---|:---|
| C000132327 | LargeCap S&P 500 Managed Volatility Index Account Class 1 |  |

### Diversified Balanced Strategic Allocation Account (formerly, Diversified Balanced Managed Volatility Account) (Series ID: S000042785)

| Class ID   | Class Name                                                                                                            | Ticker Symbol   |
|:---|:---|:---|
| C000132328 | Diversified Balanced Strategic Allocation Account (formerly, Diversified Balanced Managed Volatility Account) Class 2 |  |

### Diversified Growth Strategic Allocation Account (formerly, Diversified Growth Managed Volatility Account) (Series ID: S000042786)

| Class ID   | Class Name                                                                                                        | Ticker Symbol   |
|:---|:---|:---|
| C000132329 | Diversified Growth Strategic Allocation Account (formerly, Diversified Growth Managed Volatility Account) Class 2 |  |

### Diversified Balanced Adaptive Allocation Account (formerly, Diversified Balanced Volatility Control Account) (Series ID: S000056528)

| Class ID   | Class Name                                                                                                           | Ticker Symbol   |
|:---|:---|:---|
| C000178859 | Diversified Balanced Adaptive Allocation Account (formerly, Diversified Balanced Volatility Control Account) Class 2 |  |

### Diversified Growth Adaptive Allocation Account (formerly, Diversified Growth Volatility Control Account) (Series ID: S000056529)

| Class ID   | Class Name                                                                                                       | Ticker Symbol   |
|:---|:---|:---|
| C000178860 | Diversified Growth Adaptive Allocation Account (formerly, Diversified Growth Volatility Control Account) Class 2 |  |

### Blue Chip Account (Series ID: S000070249)

| Class ID   | Class Name                | Ticker Symbol   |
|:---|:---|:---|
| C000260396 | Blue Chip Account Class 2 |  |

### U.S. LargeCap S&P 500 Index Buffer July Account (formerly, U.S. LargeCap Buffer July Account) (Series ID: S000076127)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000235586 | Class 2      |  |

### U.S. LargeCap S&P 500 Index Buffer October Account (formerly, U.S. LargeCap Buffer October Account) (Series ID: S000077914)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000238594 | Class 2      |  |

### U.S. LargeCap S&P 500 Index Buffer April Account (formerly, U.S. LargeCap Buffer April Account) (Series ID: S000077915)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000238595 | Class 2      |  |

### U.S. LargeCap S&P 500 Index Buffer January Account (formerly, U.S. LargeCap Buffer January Account) (Series ID: S000077916)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000238596 | Class 2      |  |

?xml version='1.0' encoding='ASCII'?

 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

## FORM N-CSR

# CERTIFIED SHAREHOLDER REPORT OF REGISTERED
**MANAGEMENT INVESTMENT COMPANIES**

Investment Company Act file number <u> 811-01944 </u>

&nbsp;&nbsp; Principal Variable Contracts Funds, Inc.<br>

(Exact name of registrant as specified in charter)

&nbsp;&nbsp; 711 High Street, Des Moines, IA 50392<br>

(Address of principal executive offices)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (Zip code)

&nbsp;&nbsp; <br>Principal Global Investors, LLC, 801 Grand Avenue, Des Moines, IA 50309<br>

(Name and address of agent for service)

Registrant's telephone number, including area code: <u> 515-235-1719 </u>

Date of fiscal year end: <u> December 31, 2025 </u>

Date of reporting period: <u> December 31, 2025 </u>

**ITEM 1 – REPORT TO STOCKHOLDERS**

(a) The following is a copy of the report transmitted to stockholders pursuant to Rule 30e-1 under the Act (17 CFR 270.30e-1).

(b) Not applicable.

# Class 2

# Blue Chip Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Blue Chip Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.**This report describes certain changes to the Fund that occurred during the reporting period.**

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $64<sup>Footnote Reference\*</sup> | 0.90%<sup>Footnote Reference†</sup> |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Expenses are for the period from April 30, 2025, date operations commenced, through December 31, 2025. Expenses for the full reporting period would be higher. |
| &nbsp;&nbsp;Footnote<sup>†</sup> | &nbsp;&nbsp;Computed on an annualized basis. |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks long-term growth of capital. Under normal circumstances, the Fund invests at least 80% of its net assets in equity securities of companies with large market capitalizations that display characteristics of a "blue chip" company. For this Fund, "blue chip" companies typically display some or all of the following characteristics: (1) large, well-established, and financially sound companies; and (2) considered market leaders or among the top three companies in their sector. The Fund tends to focus on securities of companies that show potential for growth of capital as well as an expectation for above-average earnings. The Fund also invests in securities of foreign companies. Over the year, entertainment streaming service Netflix was the top contributor relative to the Russell 1000 Growth Index ("Index"). The company reported in October that market share and engagement were at an all-time high. Lack of allocation to energy and utilities, and a lower allocation in consumer staples benefited performance relative to the Index. Company selection in information technology was the biggest detractor. Less exposure to companies driven higher by the artificial intelligence capital expenditure surge detracted from performance relative to the Index. Software holdings including Roper Technologies and Cadence Design sold off this year on the narrative that generative artificial intelligence will be able to replace software. The team saw no evidence of a change in the competitive environment for these businesses. Selection in health care companies detracted relative to the Index, including Zoetis and Danaher. Animal health business Zoetis declined around a competitor's new product launch. Zoetis has a strong lineup of new products in its pipeline. Danaher saw its bioprocessing business return to growth in the third quarter, following a post-pandemic destocking period. Vehicle salvage and auction business Copart detracted, caused by lower volumes due to a rise in uninsured drivers. Insurance premiums have started to come down, and the temporary headwinds should abate.

## How did the Fund perform since inception?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](if4767bb398339b50eed312e6.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 2 Shares at net asset value $16,323** | **Russell 1000 Index $19,411** | **Russell 1000 Growth Index $21,232** |
| **11/20** | 10000 | 10000 | 10000 |
| **12/20** | 10340 | 10265 | 10409 |
| **1/21** | 9990 | 10180 | 10332 |
| **2/21** | 10310 | 10475 | 10330 |
| **3/21** | 10520 | 10872 | 10507 |
| **4/21** | 11390 | 11457 | 11222 |
| **5/21** | 11400 | 11512 | 11067 |
| **6/21** | 12060 | 11800 | 11761 |
| **7/21** | 12440 | 12045 | 12149 |
| **8/21** | 12870 | 12394 | 12603 |
| **9/21** | 12201 | 11824 | 11897 |
| **10/21** | 13031 | 12645 | 12928 |
| **11/21** | 12761 | 12475 | 13007 |
| **12/21** | 12896 | 12981 | 13282 |
| **1/22** | 11698 | 12249 | 12142 |
| **2/22** | 10993 | 11913 | 11626 |
| **3/22** | 11225 | 12315 | 12081 |
| **4/22** | 9775 | 11217 | 10622 |
| **5/22** | 9715 | 11200 | 10375 |
| **6/22** | 9987 | 11218 | 10700 |
| **7/22** | 9443 | 10787 | 10201 |
| **8/22** | 8883 | 10574 | 9748 |
| **9/22** | 9467 | 11146 | 10192 |
| **12/22** | 8873 | 10498 | 9412 |
| **1/23** | 9639 | 11202 | 10196 |
| **2/23** | 9276 | 10935 | 10075 |
| **3/23** | 9659 | 11281 | 10764 |
| **4/23** | 9871 | 11421 | 10870 |
| **5/23** | 10062 | 11474 | 11366 |
| **6/23** | 10788 | 12249 | 12143 |
| **7/23** | 11101 | 12670 | 12552 |
| **8/23** | 11141 | 12448 | 12439 |
| **9/23** | 10506 | 11863 | 11763 |
| **10/23** | 10496 | 11577 | 11595 |
| **11/23** | 11847 | 12658 | 12859 |
| **12/23** | 12341 | 13283 | 13429 |
| **1/24** | 12653 | 13468 | 13764 |
| **2/24** | 13289 | 14195 | 14703 |
| **3/24** | 13541 | 14650 | 14961 |
| **4/24** | 12946 | 14027 | 14327 |
| **5/24** | 13359 | 14687 | 15184 |
| **6/24** | 13873 | 15174 | 16208 |
| **7/24** | 14004 | 15394 | 15933 |
| **8/24** | 14277 | 15759 | 16265 |
| **9/24** | 14498 | 16096 | 16725 |
| **10/24** | 14297 | 15984 | 16670 |
| **11/24** | 15355 | 17013 | 17751 |
| **12/24** | 14932 | 16538 | 17908 |
| **1/25** | 15618 | 17065 | 18262 |
| **2/25** | 15093 | 16766 | 17606 |
| **3/25** | 14307 | 15796 | 16123 |
| **4/25** | 14619 | 15702 | 16408 |
| **5/25** | 15557 | 16704 | 17860 |
| **6/25** | 16202 | 17550 | 18999 |
| **7/25** | 16797 | 17940 | 19716 |
| **8/25** | 16646 | 18318 | 19937 |
| **9/25** | 16616 | 18953 | 20996 |
| **10/25** | 16767 | 19362 | 21758 |
| **11/25** | 16495 | 19409 | 21364 |
| **12/25** | 16323 | 19411 | 21232 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year<sup>Footnote Reference\*</sup>** | **5-Year<sup>Footnote Reference\*</sup>** | **Since Inception<sup>Footnote Reference\*</sup>** |
| Class 2 Shares | 9.32% | 9.56% | 10.17% |
| Russell 1000 Index | 17.37% | 13.59% | 14.00% |
| Russell 1000 Growth Index | 18.56% | 15.32% | 16.04% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;For periods prior to the inception date of the share class, extended performance is calculated to reflect the historical performance of the oldest share class of the Fund, adjusted for the fees and expenses of this share class. The extended performance inception date is December 9, 2020. |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Russell 1000 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Russell 1000 Growth Index is included as an additional index for the Fund as it shows how the Fund's performance compares with the returns of an index of funds with similar investment objectives. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$24,412

* Total Number of Portfolio Holdings38

* Portfolio Turnover Rate 37.4%

* Total Advisory Fees Paid (amount in thousands)$154

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Common Stocks | 99.75% |
| Investment Companies | 0.40% |
| Other Assets and Liabilities | (0.15)% |
| Total Net Assets | 100.00% |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Technology | 35.02% |
| Communications | 22.53% |
| Financial | 21.32% |
| Industrial | 8.92% |
| Consumer, Non-cyclical | 6.30% |
| Consumer, Cyclical | 4.56% |
| Basic Materials | 1.10% |
| Money Market Funds | 0.40% |
| Other Assets and Liabilities | (0.15)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
This is a summary of certain changes to the Fund since April 30, 2025. For more complete information, you may review the Fund's most recent prospectus, which we expect to be effective by May 1 or upon request at www.PrincipalAM.com/pvcprospectuses.

Effective May 1, 2025, the Manager contractually agreed to limit the Fund's Class 2 expenses so that the total level of operating expenses do not exceed 0.90%. Effective July 22, 2025, the Fund changed from Diversified to Non-Diversified and updated its Investment Strategies and Principal Risks.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC897AR2-0

# Class 1

# Bond Market Index Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Bond Market Index Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $16 | 0.15% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide current income. Under normal circumstances, the Fund uses a passive investment approach known as "sampling" to invest at least 80% of its net assets in investments designed to track the Bloomberg US Aggregate Index ("Index"). The Index is composed of investment-grade, fixed-rate debt issues with maturities of one year or more, including government securities, corporate securities, and asset-backed and mortgage-backed securities (securitized products). During the 12 months ending December 31, 2025, the Fund's investments outperformed the Index. Top contributors to performance included a slightly higher allocation compared to Index weight to investment grade corporate bonds, security specific impacts within investment grade corporate bonds, and security specific impacts within mortgage-backed securities. Primary detractors to performance included a slightly lower allocation compared to Index weight to government related credit, security specific impacts within commercial mortgage-backed securities, and a slightly higher allocation compared to Index weight to U.S. Treasury securities.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i15a3fda8d1f948c7f0ef71b2.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 1 Shares at net asset value $11,953** | **Bloomberg US Aggregate Index $12,199** |
| **12/15** | 10000 | 10000 |
| **1/16** | 10137 | 10138 |
| **2/16** | 10206 | 10210 |
| **3/16** | 10294 | 10303 |
| **4/16** | 10333 | 10343 |
| **5/16** | 10333 | 10345 |
| **6/16** | 10520 | 10531 |
| **7/16** | 10578 | 10598 |
| **8/16** | 10568 | 10586 |
| **9/16** | 10558 | 10580 |
| **10/16** | 10468 | 10499 |
| **11/16** | 10219 | 10250 |
| **12/16** | 10229 | 10265 |
| **1/17** | 10249 | 10285 |
| **2/17** | 10309 | 10354 |
| **3/17** | 10379 | 10428 |
| **4/17** | 10459 | 10509 |
| **5/17** | 10449 | 10498 |
| **6/17** | 10488 | 10543 |
| **7/17** | 10583 | 10638 |
| **8/17** | 10522 | 10587 |
| **9/17** | 10533 | 10593 |
| **10/17** | 10512 | 10580 |
| **12/17** | 10563 | 10628 |
| **1/18** | 10441 | 10506 |
| **2/18** | 10339 | 10406 |
| **3/18** | 10400 | 10473 |
| **4/18** | 10319 | 10395 |
| **5/18** | 10390 | 10469 |
| **6/18** | 10380 | 10456 |
| **7/18** | 10380 | 10459 |
| **8/18** | 10441 | 10526 |
| **9/18** | 10377 | 10458 |
| **10/18** | 10294 | 10376 |
| **11/18** | 10345 | 10438 |
| **12/18** | 10543 | 10629 |
| **1/19** | 10647 | 10742 |
| **2/19** | 10647 | 10736 |
| **3/19** | 10844 | 10942 |
| **4/19** | 10844 | 10945 |
| **5/19** | 11031 | 11139 |
| **6/19** | 11176 | 11279 |
| **7/19** | 11197 | 11304 |
| **8/19** | 11488 | 11597 |
| **9/19** | 11425 | 11535 |
| **10/19** | 11457 | 11570 |
| **11/19** | 11446 | 11564 |
| **12/19** | 11436 | 11556 |
| **1/20** | 11660 | 11778 |
| **2/20** | 11863 | 11990 |
| **3/20** | 11809 | 11920 |
| **4/20** | 12012 | 12132 |
| **5/20** | 12055 | 12188 |
| **6/20** | 12129 | 12265 |
| **7/20** | 12300 | 12448 |
| **8/20** | 12193 | 12348 |
| **9/20** | 12182 | 12341 |
| **10/20** | 12127 | 12286 |
| **11/20** | 12247 | 12406 |
| **12/20** | 12269 | 12423 |
| **1/21** | 12171 | 12334 |
| **2/21** | 11952 | 12156 |
| **3/21** | 11853 | 12005 |
| **4/21** | 11941 | 12099 |
| **5/21** | 11963 | 12139 |
| **6/21** | 12061 | 12224 |
| **7/21** | 12192 | 12361 |
| **8/21** | 12171 | 12337 |
| **9/21** | 12067 | 12230 |
| **10/21** | 12055 | 12227 |
| **11/21** | 12089 | 12263 |
| **12/21** | 12044 | 12232 |
| **1/22** | 11798 | 11968 |
| **2/22** | 11664 | 11835 |
| **3/22** | 11339 | 11506 |
| **4/22** | 10903 | 11069 |
| **5/22** | 10981 | 11141 |
| **6/22** | 11070 | 11234 |
| **7/22** | 10757 | 10917 |
| **8/22** | 10150 | 10310 |
| **9/22** | 10528 | 10689 |
| **12/22** | 10459 | 10641 |
| **1/23** | 10803 | 10968 |
| **2/23** | 10516 | 10684 |
| **3/23** | 10791 | 10956 |
| **4/23** | 10848 | 11022 |
| **5/23** | 10734 | 10902 |
| **6/23** | 10699 | 10863 |
| **7/23** | 10688 | 10856 |
| **8/23** | 10619 | 10786 |
| **9/23** | 10343 | 10512 |
| **10/23** | 10178 | 10346 |
| **11/23** | 10636 | 10815 |
| **12/23** | 11035 | 11229 |
| **1/24** | 11012 | 11198 |
| **2/24** | 10859 | 11040 |
| **3/24** | 10941 | 11142 |
| **4/24** | 10671 | 10860 |
| **5/24** | 10859 | 11044 |
| **6/24** | 10953 | 11149 |
| **7/24** | 11211 | 11409 |
| **8/24** | 11376 | 11573 |
| **9/24** | 11530 | 11728 |
| **10/24** | 11239 | 11437 |
| **11/24** | 11348 | 11558 |
| **12/24** | 11154 | 11369 |
| **1/25** | 11227 | 11430 |
| **2/25** | 11469 | 11681 |
| **3/25** | 11469 | 11685 |
| **4/25** | 11518 | 11731 |
| **5/25** | 11433 | 11647 |
| **6/25** | 11602 | 11826 |
| **7/25** | 11578 | 11795 |
| **8/25** | 11711 | 11936 |
| **9/25** | 11839 | 12067 |
| **10/25** | 11915 | 12142 |
| **11/25** | 11991 | 12217 |
| **12/25** | 11953 | 12199 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 7.16% | -0.52% | 1.80% |
| Bloomberg US Aggregate Index | 7.30% | -0.36% | 2.01% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$1,802,149

* Total Number of Portfolio Holdings4,217

* Portfolio Turnover Rate 39.7%

* Total Advisory Fees Paid (amount in thousands)$2,706

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| U.S. Government & Government Agency Obligations | 70.32% |
| Bonds | 28.04% |
| Investment Companies | 1.35% |
| Municipal Bonds | 0.57% |
| Other Assets and Liabilities | (0.28)% |
| Total Net Assets | 100.00% |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Government | 48.71% |
| Mortgage Securities | 25.58% |
| Financial | 7.90% |
| Consumer, Non-cyclical | 4.22% |
| Utilities | 2.38% |
| Communications | 2.13% |
| Technology | 1.88% |
| Industrial | 1.86% |
| Energy | 1.72% |
| Consumer, Cyclical | 1.44% |
| Money Market Funds | 1.18% |
| Basic Materials | 0.54% |
| Revenue Bonds | 0.33% |
| Exchange-Traded Funds | 0.17% |
| General Obligation Unlimited | 0.16% |
| Insured | 0.05% |
| Prerefunded | 0.03% |
| General Obligation Limited | 0.00% |
| Other Assets and Liabilities | (0.28)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC5AR1-0

# Class 1

# Core Plus Bond Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Core Plus Bond Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $51 | 0.49% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide current income and, as a secondary objective, capital appreciation. Under normal circumstances, the Fund invests at least 80% of its net assets in bonds. These include securities issued or guaranteed by the U.S. government or its agencies or instrumentalities; asset-backed securities and mortgage-backed securities (securitized products, including collateralized mortgage obligations); and corporate bonds. The Fund also invests in other debt securities, including foreign securities and emerging market securities. The Fund also invests in derivatives. During the 12 months ending in December 2025, the Fund's investments outperformed the Bloomberg US Aggregate Index ("Index"), primarily driven by sector allocation. Duration and curve positioning, along with security selection, also contributed positively to performance. Within sector allocation, outperformance was led by an out-of-Index allocation to below investment-grade corporate bonds. Overweight allocations to investment-grade corporate bonds and mortgage-backed securities also contributed to performance. Positive security selection was driven by issuer-specific performance within emerging market debt. Duration and curve positioning also contributed to performance as interest rates declined, and the yield curve steepened during the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i67683758a55060c802c03a60.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 1 Shares at net asset value $12,633** | **Bloomberg US Aggregate Index $12,199** |
| **12/15** | 10000 | 10000 |
| **1/16** | 10081 | 10138 |
| **2/16** | 10136 | 10210 |
| **3/16** | 10281 | 10303 |
| **4/16** | 10380 | 10343 |
| **5/16** | 10389 | 10345 |
| **6/16** | 10561 | 10531 |
| **7/16** | 10670 | 10598 |
| **8/16** | 10679 | 10586 |
| **9/16** | 10679 | 10580 |
| **10/16** | 10614 | 10499 |
| **11/16** | 10371 | 10250 |
| **12/16** | 10409 | 10265 |
| **1/17** | 10455 | 10285 |
| **2/17** | 10539 | 10354 |
| **3/17** | 10614 | 10428 |
| **4/17** | 10707 | 10509 |
| **5/17** | 10717 | 10498 |
| **6/17** | 10773 | 10543 |
| **7/17** | 10851 | 10638 |
| **8/17** | 10832 | 10587 |
| **9/17** | 10861 | 10593 |
| **10/17** | 10851 | 10580 |
| **12/17** | 10909 | 10628 |
| **1/18** | 10823 | 10506 |
| **2/18** | 10698 | 10406 |
| **3/18** | 10726 | 10473 |
| **4/18** | 10659 | 10395 |
| **5/18** | 10698 | 10469 |
| **6/18** | 10678 | 10456 |
| **7/18** | 10717 | 10459 |
| **8/18** | 10774 | 10526 |
| **9/18** | 10725 | 10458 |
| **10/18** | 10605 | 10376 |
| **11/18** | 10625 | 10438 |
| **12/18** | 10755 | 10629 |
| **1/19** | 10924 | 10742 |
| **2/19** | 10944 | 10736 |
| **3/19** | 11153 | 10942 |
| **4/19** | 11182 | 10945 |
| **5/19** | 11342 | 11139 |
| **6/19** | 11521 | 11279 |
| **7/19** | 11561 | 11304 |
| **8/19** | 11819 | 11597 |
| **9/19** | 11768 | 11535 |
| **10/19** | 11768 | 11570 |
| **11/19** | 11779 | 11564 |
| **12/19** | 11809 | 11556 |
| **1/20** | 12004 | 11778 |
| **2/20** | 12189 | 11990 |
| **3/20** | 11871 | 11920 |
| **4/20** | 12251 | 12132 |
| **5/20** | 12395 | 12188 |
| **6/20** | 12518 | 12265 |
| **7/20** | 12805 | 12448 |
| **8/20** | 12723 | 12348 |
| **9/20** | 12692 | 12341 |
| **10/20** | 12671 | 12286 |
| **11/20** | 12895 | 12406 |
| **12/20** | 12937 | 12423 |
| **1/21** | 12841 | 12334 |
| **2/21** | 12671 | 12156 |
| **3/21** | 12586 | 12005 |
| **4/21** | 12703 | 12099 |
| **5/21** | 12724 | 12139 |
| **6/21** | 12852 | 12224 |
| **7/21** | 12948 | 12361 |
| **8/21** | 12959 | 12337 |
| **9/21** | 12868 | 12230 |
| **10/21** | 12868 | 12227 |
| **11/21** | 12857 | 12263 |
| **12/21** | 12879 | 12232 |
| **1/22** | 12587 | 11968 |
| **2/22** | 12408 | 11835 |
| **3/22** | 12105 | 11506 |
| **4/22** | 11611 | 11069 |
| **5/22** | 11668 | 11141 |
| **6/22** | 11701 | 11234 |
| **7/22** | 11398 | 10917 |
| **8/22** | 10707 | 10310 |
| **9/22** | 11118 | 10689 |
| **12/22** | 11060 | 10641 |
| **1/23** | 11424 | 10968 |
| **2/23** | 11130 | 10684 |
| **3/23** | 11377 | 10956 |
| **4/23** | 11435 | 11022 |
| **5/23** | 11306 | 10902 |
| **6/23** | 11259 | 10863 |
| **7/23** | 11259 | 10856 |
| **8/23** | 11165 | 10786 |
| **9/23** | 10852 | 10512 |
| **10/23** | 10658 | 10346 |
| **11/23** | 11179 | 10815 |
| **12/23** | 11650 | 11229 |
| **1/24** | 11638 | 11198 |
| **2/24** | 11457 | 11040 |
| **3/24** | 11566 | 11142 |
| **4/24** | 11263 | 10860 |
| **5/24** | 11457 | 11044 |
| **6/24** | 11578 | 11149 |
| **7/24** | 11856 | 11409 |
| **8/24** | 12026 | 11573 |
| **9/24** | 12167 | 11728 |
| **10/24** | 11818 | 11437 |
| **11/24** | 11955 | 11558 |
| **12/24** | 11756 | 11369 |
| **1/25** | 11831 | 11430 |
| **2/25** | 12080 | 11681 |
| **3/25** | 12043 | 11685 |
| **4/25** | 12080 | 11731 |
| **5/25** | 12018 | 11647 |
| **6/25** | 12230 | 11826 |
| **7/25** | 12217 | 11795 |
| **8/25** | 12367 | 11936 |
| **9/25** | 12516 | 12067 |
| **10/25** | 12568 | 12142 |
| **11/25** | 12646 | 12217 |
| **12/25** | 12633 | 12199 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 7.46% | -0.48% | 2.36% |
| Bloomberg US Aggregate Index | 7.30% | -0.36% | 2.01% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$246,054

* Total Number of Portfolio Holdings781

* Portfolio Turnover Rate 170.0%

* Total Advisory Fees Paid (amount in thousands)$1,022

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Bonds | 55.38% |
| U.S. Government & Government Agency Obligations | 38.90% |
| Investment Companies | 7.69% |
| Senior Floating Rate Interests | 2.16% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | (4.13)% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Mortgage Securities | 37.74% |
| Financial | 13.46% |
| Government | 9.18% |
| Asset Backed Securities | 8.56% |
| Consumer, Non-cyclical | 5.21% |
| Exchange-Traded Funds | 4.56% |
| Communications | 4.49% |
| Utilities | 3.62% |
| Consumer, Cyclical | 3.57% |
| Technology | 3.42% |
| Money Market Funds | 3.13% |
| Industrial | 3.00% |
| Energy | 2.75% |
| Basic Materials | 1.44% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | (4.13)% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC4AR1-0

# Class 1

# Diversified Balanced Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Diversified Balanced Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $6 | 0.06% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide as high a level of total return as is consistent with reasonable risk. The Fund operates as a fund of funds and invests in funds of Principal Funds, Inc., Principal Variable Contracts Funds, Inc., Principal Exchange-Traded Funds, and other fund complexes. The Fund generally allocates approximately 50% of its assets to equity index funds to gain broad market capitalization exposure to both U.S. and non-U.S. investments and approximately 50% to fixed-income index funds for intermediate duration fixed-income exposure. The underlying funds utilize derivative strategies. The asset class diversification of the Fund is designed to moderate overall price volatility and cushion severe losses in any one investment sector. Global equity and fixed income markets posted positive returns in 2025. Ex-U.S. equities were the leaders, benefiting from attractive valuations, fiscal policy expansions, and a weakening U.S. dollar. U.S. equities gained on above trend economic strength, upheld by strong consumers and robust corporate balance sheets. Within U.S. equities, large-cap equities achieved the strongest earnings growth and outperformed mid- and small-cap equities. U.S. core fixed income lagged equities in the strong risk-on market but still posted a positive return for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](if919fb56af76453389411c1d.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 1 Shares at net asset value $20,625** | **Bloomberg US Aggregate Index $12,199** |
| **12/15** | 10000 | 10000 |
| **1/16** | 9816 | 10138 |
| **2/16** | 9823 | 10210 |
| **3/16** | 10206 | 10303 |
| **4/16** | 10262 | 10343 |
| **5/16** | 10340 | 10345 |
| **6/16** | 10418 | 10531 |
| **7/16** | 10645 | 10598 |
| **8/16** | 10653 | 10586 |
| **9/16** | 10661 | 10580 |
| **10/16** | 10494 | 10499 |
| **11/16** | 10574 | 10250 |
| **12/16** | 10690 | 10265 |
| **1/17** | 10798 | 10285 |
| **2/17** | 11001 | 10354 |
| **3/17** | 11124 | 10428 |
| **4/17** | 11233 | 10509 |
| **5/17** | 11276 | 10498 |
| **6/17** | 11407 | 10543 |
| **7/17** | 11448 | 10638 |
| **8/17** | 11567 | 10587 |
| **9/17** | 11694 | 10593 |
| **10/17** | 11851 | 10580 |
| **12/17** | 11933 | 10628 |
| **1/18** | 12172 | 10506 |
| **2/18** | 11866 | 10406 |
| **3/18** | 11806 | 10473 |
| **4/18** | 11791 | 10395 |
| **5/18** | 11963 | 10469 |
| **6/18** | 11978 | 10456 |
| **7/18** | 12172 | 10459 |
| **8/18** | 12366 | 10526 |
| **9/18** | 12343 | 10458 |
| **10/18** | 11830 | 10376 |
| **11/18** | 11970 | 10438 |
| **12/18** | 11558 | 10629 |
| **1/19** | 12086 | 10742 |
| **2/19** | 12289 | 10736 |
| **3/19** | 12475 | 10942 |
| **4/19** | 12716 | 10945 |
| **5/19** | 12405 | 11139 |
| **6/19** | 12910 | 11279 |
| **7/19** | 12980 | 11304 |
| **8/19** | 13019 | 11597 |
| **9/19** | 13125 | 11535 |
| **10/19** | 13290 | 11570 |
| **11/19** | 13497 | 11564 |
| **12/19** | 13688 | 11556 |
| **1/20** | 13754 | 11778 |
| **2/20** | 13307 | 11990 |
| **3/20** | 12412 | 11920 |
| **4/20** | 13257 | 12132 |
| **5/20** | 13613 | 12188 |
| **6/20** | 13804 | 12265 |
| **7/20** | 14235 | 12448 |
| **8/20** | 14624 | 12348 |
| **9/20** | 14353 | 12341 |
| **10/20** | 14186 | 12286 |
| **11/20** | 15101 | 12406 |
| **12/20** | 15462 | 12423 |
| **1/21** | 15382 | 12334 |
| **2/21** | 15506 | 12156 |
| **3/21** | 15743 | 12005 |
| **4/21** | 16174 | 12099 |
| **5/21** | 16280 | 12139 |
| **6/21** | 16455 | 12224 |
| **7/21** | 16675 | 12361 |
| **8/21** | 16886 | 12337 |
| **9/21** | 16451 | 12230 |
| **10/21** | 16935 | 12227 |
| **11/21** | 16831 | 12263 |
| **12/21** | 17172 | 12232 |
| **1/22** | 16546 | 11968 |
| **2/22** | 16252 | 11835 |
| **3/22** | 16252 | 11506 |
| **4/22** | 15266 | 11069 |
| **5/22** | 15380 | 11141 |
| **6/22** | 15408 | 11234 |
| **7/22** | 14868 | 10917 |
| **8/22** | 14331 | 10310 |
| **9/22** | 15075 | 10689 |
| **12/22** | 14622 | 10641 |
| **1/23** | 15377 | 10968 |
| **2/23** | 14989 | 10684 |
| **3/23** | 15366 | 10956 |
| **4/23** | 15495 | 11022 |
| **5/23** | 15366 | 10902 |
| **6/23** | 15840 | 10863 |
| **7/23** | 16099 | 10856 |
| **8/23** | 15862 | 10786 |
| **9/23** | 15284 | 10512 |
| **10/23** | 14943 | 10346 |
| **11/23** | 15942 | 10815 |
| **12/23** | 16694 | 11229 |
| **1/24** | 16729 | 11198 |
| **2/24** | 17011 | 11040 |
| **3/24** | 17364 | 11142 |
| **4/24** | 16776 | 10860 |
| **5/24** | 17340 | 11044 |
| **6/24** | 17575 | 11149 |
| **7/24** | 18010 | 11409 |
| **8/24** | 18327 | 11573 |
| **9/24** | 18600 | 11728 |
| **10/24** | 18216 | 11437 |
| **11/24** | 18811 | 11558 |
| **12/24** | 18340 | 11369 |
| **1/25** | 18687 | 11430 |
| **2/25** | 18773 | 11681 |
| **3/25** | 18303 | 11685 |
| **4/25** | 18303 | 11731 |
| **5/25** | 18773 | 11647 |
| **6/25** | 19343 | 11826 |
| **7/25** | 19454 | 11795 |
| **8/25** | 19851 | 11936 |
| **9/25** | 20249 | 12067 |
| **10/25** | 20480 | 12142 |
| **11/25** | 20610 | 12217 |
| **12/25** | 20625 | 12199 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year<sup>Footnote Reference\*</sup>** |
| Class 1 Shares | 12.46% | 5.93% | 7.51% |
| Bloomberg US Aggregate Index | 7.30% | -0.36% | 2.01% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;For periods prior to the inception date of the share class, extended performance is calculated to reflect the historical performance of the oldest share class of the Fund, adjusted for the fees and expenses of this share class. The extended performance inception date is December 30, 2009. |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Bloomberg US Aggregate Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Fund uses a blended benchmark, Diversified Balanced Custom Index. The largest component of the blended benchmark is included as an additional index for the Fund to show how the Fund's performance compares with returns of indices of funds with similar investment objectives. The weightings of the Diversified Balanced Custom Index are as follows: 50% Bloomberg US Aggregate Index, 35% S&P 500 Index, 7% MSCI EAFE Index NTR, 4% S&P MidCap 400 Index, and 4% S&P SmallCap 600 Index. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$503,543

* Total Number of Portfolio Holdings5

* Portfolio Turnover Rate 19.0%

* Total Advisory Fees Paid (amount in thousands)$278

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 100.03% |
| Other Assets and Liabilities | (0.03)% |
| Total Net Assets | 100.00% |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Fixed Income Funds | 50.10% |
| Domestic Equity Funds | 42.85% |
| International Equity Funds | 7.08% |
| Other Assets and Liabilities | (0.03)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC6AR1-0

# Class 2

# Diversified Balanced Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Diversified Balanced Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $33 | 0.31% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide as high a level of total return as is consistent with reasonable risk. The Fund operates as a fund of funds and invests in funds of Principal Funds, Inc., Principal Variable Contracts Funds, Inc., Principal Exchange-Traded Funds, and other fund complexes. The Fund generally allocates approximately 50% of its assets to equity index funds to gain broad market capitalization exposure to both U.S. and non-U.S. investments and approximately 50% to fixed-income index funds for intermediate duration fixed-income exposure. The underlying funds utilize derivative strategies. The asset class diversification of the Fund is designed to moderate overall price volatility and cushion severe losses in any one investment sector. Global equity and fixed income markets posted positive returns in 2025. Ex-U.S. equities were the leaders, benefiting from attractive valuations, fiscal policy expansions, and a weakening U.S. dollar. U.S. equities gained on above trend economic strength, upheld by strong consumers and robust corporate balance sheets. Within U.S. equities, large-cap equities achieved the strongest earnings growth and outperformed mid- and small-cap equities. U.S. core fixed income lagged equities in the strong risk-on market but still posted a positive return for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i8a3682dc2c185fbfc625addc.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 2 Shares at net asset value $20,181** | **Bloomberg US Aggregate Index $12,199** |
| **12/15** | 10000 | 10000 |
| **1/16** | 9816 | 10138 |
| **2/16** | 9823 | 10210 |
| **3/16** | 10206 | 10303 |
| **4/16** | 10262 | 10343 |
| **5/16** | 10340 | 10345 |
| **6/16** | 10418 | 10531 |
| **7/16** | 10645 | 10598 |
| **8/16** | 10653 | 10586 |
| **9/16** | 10661 | 10580 |
| **10/16** | 10494 | 10499 |
| **11/16** | 10574 | 10250 |
| **12/16** | 10690 | 10265 |
| **1/17** | 10798 | 10285 |
| **2/17** | 11001 | 10354 |
| **3/17** | 11124 | 10428 |
| **4/17** | 11233 | 10509 |
| **5/17** | 11269 | 10498 |
| **6/17** | 11399 | 10543 |
| **7/17** | 11442 | 10638 |
| **8/17** | 11561 | 10587 |
| **9/17** | 11688 | 10593 |
| **10/17** | 11837 | 10580 |
| **12/17** | 11911 | 10628 |
| **1/18** | 12150 | 10506 |
| **2/18** | 11844 | 10406 |
| **3/18** | 11785 | 10473 |
| **4/18** | 11762 | 10395 |
| **5/18** | 11934 | 10469 |
| **6/18** | 11941 | 10456 |
| **7/18** | 12142 | 10459 |
| **8/18** | 12329 | 10526 |
| **9/18** | 12303 | 10458 |
| **10/18** | 11793 | 10376 |
| **11/18** | 11924 | 10438 |
| **12/18** | 11507 | 10629 |
| **1/19** | 12040 | 10742 |
| **2/19** | 12233 | 10736 |
| **3/19** | 12419 | 10942 |
| **4/19** | 12651 | 10945 |
| **5/19** | 12342 | 11139 |
| **6/19** | 12844 | 11279 |
| **7/19** | 12906 | 11304 |
| **8/19** | 12945 | 11597 |
| **9/19** | 13053 | 11535 |
| **10/19** | 13209 | 11570 |
| **11/19** | 13407 | 11564 |
| **12/19** | 13604 | 11556 |
| **1/20** | 13661 | 11778 |
| **2/20** | 13218 | 11990 |
| **3/20** | 12322 | 11920 |
| **4/20** | 13160 | 12132 |
| **5/20** | 13513 | 12188 |
| **6/20** | 13703 | 12265 |
| **7/20** | 14122 | 12448 |
| **8/20** | 14500 | 12348 |
| **9/20** | 14235 | 12341 |
| **10/20** | 14061 | 12286 |
| **11/20** | 14974 | 12406 |
| **12/20** | 15322 | 12423 |
| **1/21** | 15244 | 12334 |
| **2/21** | 15357 | 12156 |
| **3/21** | 15592 | 12005 |
| **4/21** | 16010 | 12099 |
| **5/21** | 16123 | 12139 |
| **6/21** | 16288 | 12224 |
| **7/21** | 16506 | 12361 |
| **8/21** | 16706 | 12337 |
| **9/21** | 16271 | 12230 |
| **10/21** | 16748 | 12227 |
| **11/21** | 16636 | 12263 |
| **12/21** | 16982 | 12232 |
| **1/22** | 16346 | 11968 |
| **2/22** | 16056 | 11835 |
| **3/22** | 16056 | 11506 |
| **4/22** | 15083 | 11069 |
| **5/22** | 15186 | 11141 |
| **6/22** | 15205 | 11234 |
| **7/22** | 14671 | 10917 |
| **8/22** | 14132 | 10310 |
| **9/22** | 14863 | 10689 |
| **12/22** | 14418 | 10641 |
| **1/23** | 15160 | 10968 |
| **2/23** | 14778 | 10684 |
| **3/23** | 15139 | 10956 |
| **4/23** | 15266 | 11022 |
| **5/23** | 15128 | 10902 |
| **6/23** | 15605 | 10863 |
| **7/23** | 15859 | 10856 |
| **8/23** | 15626 | 10786 |
| **9/23** | 15036 | 10512 |
| **10/23** | 14713 | 10346 |
| **11/23** | 15692 | 10815 |
| **12/23** | 16417 | 11229 |
| **1/24** | 16452 | 11198 |
| **2/24** | 16728 | 11040 |
| **3/24** | 17073 | 11142 |
| **4/24** | 16486 | 10860 |
| **5/24** | 17039 | 11044 |
| **6/24** | 17269 | 11149 |
| **7/24** | 17684 | 11409 |
| **8/24** | 17994 | 11573 |
| **9/24** | 18270 | 11728 |
| **10/24** | 17883 | 11437 |
| **11/24** | 18464 | 11558 |
| **12/24** | 18004 | 11369 |
| **1/25** | 18331 | 11430 |
| **2/25** | 18403 | 11681 |
| **3/25** | 17956 | 11685 |
| **4/25** | 17943 | 11731 |
| **5/25** | 18403 | 11647 |
| **6/25** | 18948 | 11826 |
| **7/25** | 19069 | 11795 |
| **8/25** | 19444 | 11936 |
| **9/25** | 19830 | 12067 |
| **10/25** | 20055 | 12142 |
| **11/25** | 20181 | 12217 |
| **12/25** | 20181 | 12199 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 2 Shares | 12.09% | 5.66% | 7.27% |
| Bloomberg US Aggregate Index | 7.30% | -0.36% | 2.01% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Bloomberg US Aggregate Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Fund uses a blended benchmark, Diversified Balanced Custom Index. The largest component of the blended benchmark is included as an additional index for the Fund to show how the Fund's performance compares with returns of indices of funds with similar investment objectives. The weightings of the Diversified Balanced Custom Index are as follows: 50% Bloomberg US Aggregate Index, 35% S&P 500 Index, 7% MSCI EAFE Index NTR, 4% S&P MidCap 400 Index, and 4% S&P SmallCap 600 Index. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$503,543

* Total Number of Portfolio Holdings5

* Portfolio Turnover Rate 19.0%

* Total Advisory Fees Paid (amount in thousands)$278

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 100.03% |
| Other Assets and Liabilities | (0.03)% |
| Total Net Assets | 100.00% |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Fixed Income Funds | 50.10% |
| Domestic Equity Funds | 42.85% |
| International Equity Funds | 7.08% |
| Other Assets and Liabilities | (0.03)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC6AR2-0

# Class 2

# Diversified Balanced Adaptive Allocation Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Diversified Balanced Adaptive Allocation Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $39 | 0.38% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide as high a level of total return as is consistent with reasonable risk, while seeking to control volatility. The Fund operates as a fund of funds and invests in funds of Principal Funds, Inc., Principal Variable Contracts Funds, Inc., Principal Exchange-Traded Funds, and other fund complexes. The Fund also invests in cash and cash equivalents and derivative instruments. During lower equity volatility, the Fund allocates approximately 50% of its assets to equity index funds to gain broad market capitalization exposure to both U.S. and non-U.S. investments and approximately 50% to fixed-income funds. During higher equity market volatility, the Fund implements a volatility control strategy to hedge its equity exposure. Global equity and fixed income markets posted positive returns in 2025. Ex-U.S. equities were the leaders, benefiting from attractive valuations, fiscal policy expansions, and a weakening U.S. dollar. U.S. equities gained on above trend economic strength, upheld by strong consumers and robust corporate balance sheets. Within U.S. equities, large-cap equities achieved the strongest earnings growth and outperformed mid- and small-cap equities. U.S. core fixed income lagged equities in the strong risk-on market but still posted a positive return for the year. Additionally, the Fund's use of a volatility mitigation strategy reduced the Fund's participation in market gains, detracting from performance for the year.

## How did the Fund perform since inception?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](iee0eac9a63d213c549fbd1a9.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 2 Shares at net asset value $16,301** | **Bloomberg US Aggregate Index $11,803** |
| **3/17** | 10000 | 10000 |
| **4/17** | 10090 | 10090 |
| **5/17** | 10190 | 10167 |
| **6/17** | 10220 | 10157 |
| **7/17** | 10340 | 10201 |
| **8/17** | 10370 | 10292 |
| **9/17** | 10480 | 10243 |
| **10/17** | 10590 | 10249 |
| **11/17** | 10730 | 10236 |
| **12/17** | 10810 | 10283 |
| **1/18** | 11030 | 10165 |
| **2/18** | 10710 | 10068 |
| **3/18** | 10600 | 10133 |
| **4/18** | 10570 | 10057 |
| **5/18** | 10720 | 10129 |
| **6/18** | 10730 | 10117 |
| **7/18** | 10910 | 10119 |
| **8/18** | 11080 | 10184 |
| **9/18** | 11045 | 10119 |
| **10/18** | 10631 | 10039 |
| **11/18** | 10712 | 10099 |
| **12/18** | 10409 | 10284 |
| **1/19** | 10712 | 10393 |
| **2/19** | 10873 | 10387 |
| **3/19** | 11035 | 10587 |
| **4/19** | 11247 | 10590 |
| **5/19** | 10964 | 10778 |
| **6/19** | 11398 | 10913 |
| **7/19** | 11459 | 10937 |
| **8/19** | 11469 | 11220 |
| **9/19** | 11537 | 11161 |
| **10/19** | 11680 | 11194 |
| **11/19** | 11855 | 11188 |
| **12/19** | 12019 | 11181 |
| **1/20** | 12080 | 11396 |
| **2/20** | 11803 | 11601 |
| **3/20** | 11465 | 11533 |
| **4/20** | 11660 | 11738 |
| **5/20** | 11834 | 11792 |
| **6/20** | 11957 | 11867 |
| **7/20** | 12214 | 12044 |
| **8/20** | 12542 | 11947 |
| **9/20** | 12319 | 11940 |
| **10/20** | 12151 | 11887 |
| **11/20** | 12794 | 12003 |
| **12/20** | 13079 | 12020 |
| **1/21** | 13005 | 11934 |
| **2/21** | 13068 | 11761 |
| **3/21** | 13248 | 11615 |
| **4/21** | 13596 | 11706 |
| **5/21** | 13691 | 11745 |
| **6/21** | 13828 | 11827 |
| **7/21** | 14018 | 11959 |
| **8/21** | 14186 | 11937 |
| **9/21** | 13812 | 11833 |
| **10/21** | 14213 | 11830 |
| **11/21** | 14126 | 11865 |
| **12/21** | 14398 | 11835 |
| **1/22** | 13855 | 11580 |
| **2/22** | 13671 | 11450 |
| **3/22** | 13541 | 11132 |
| **4/22** | 12835 | 10710 |
| **5/22** | 12911 | 10779 |
| **6/22** | 12987 | 10869 |
| **7/22** | 12553 | 10562 |
| **8/22** | 12152 | 9975 |
| **9/22** | 12777 | 10342 |
| **12/22** | 12412 | 10295 |
| **1/23** | 13001 | 10612 |
| **2/23** | 12671 | 10337 |
| **3/23** | 12942 | 10600 |
| **4/23** | 13060 | 10664 |
| **5/23** | 12942 | 10548 |
| **6/23** | 13343 | 10510 |
| **7/23** | 13555 | 10503 |
| **8/23** | 13355 | 10436 |
| **9/23** | 12856 | 10171 |
| **10/23** | 12567 | 10010 |
| **11/23** | 13410 | 10464 |
| **12/23** | 14036 | 10864 |
| **1/24** | 14060 | 10834 |
| **2/24** | 14288 | 10681 |
| **3/24** | 14589 | 10780 |
| **4/24** | 14084 | 10508 |
| **5/24** | 14565 | 10686 |
| **6/24** | 14758 | 10787 |
| **7/24** | 15107 | 11039 |
| **8/24** | 15215 | 11197 |
| **9/24** | 15458 | 11347 |
| **10/24** | 15123 | 11066 |
| **11/24** | 15619 | 11183 |
| **12/24** | 15235 | 11000 |
| **1/25** | 15507 | 11058 |
| **2/25** | 15569 | 11302 |
| **3/25** | 15185 | 11306 |
| **4/25** | 14752 | 11350 |
| **5/25** | 14900 | 11269 |
| **6/25** | 15309 | 11442 |
| **7/25** | 15408 | 11412 |
| **8/25** | 15718 | 11549 |
| **9/25** | 16028 | 11675 |
| **10/25** | 16205 | 11748 |
| **11/25** | 16301 | 11821 |
| **12/25** | 16301 | 11803 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **Since Inception<sup>Footnote Reference\*</sup>** |
| Class 2 Shares | 7.00% | 4.50% | 5.74% |
| Bloomberg US Aggregate Index | 7.30% | -0.36% | 1.91% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Since inception performance is calculated from March 30, 2017, the inception date of the Fund. |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Bloomberg US Aggregate Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Fund uses a blended benchmark, Diversified Balanced Adaptive Allocation Custom Index. The largest component of the blended benchmark is included as an additional index for the Fund to show how the Fund's performance compares with returns of indices of funds with similar investment objectives. The weightings of the Diversified Balanced Adaptive Allocation Custom Index are as follows: 50% Bloomberg US Aggregate Index, 35% S&P 500 Index, 7% MSCI EAFE Index NTR, 4% S&P MidCap 400 Index, and 4% S&P SmallCap 600 Index. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$216,884

* Total Number of Portfolio Holdings7

* Portfolio Turnover Rate 41.2%

* Total Advisory Fees Paid (amount in thousands)$267

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 100.11% |
| Other Assets and Liabilities | (0.11)% |
| Total Net Assets | 100.00% |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Fixed Income Funds | 50.10% |
| Domestic Equity Funds | 22.84% |
| Exchange-Traded Funds | 20.08% |
| International Equity Funds | 7.09% |
| Money Market Funds | 0.00% |
| Other Assets and Liabilities | (0.11)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC52AR2-0

# Class 2

# Diversified Balanced Strategic Allocation Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Diversified Balanced Strategic Allocation Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.**This report describes certain changes to the Fund that occurred during the reporting period.**

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $33 | 0.31% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide as high a level of total return as is consistent with reasonable risk, with an emphasis on managing volatility. The Fund operates as a fund of funds and invests in funds of Principal Funds, Inc., Principal Variable Contracts Funds, Inc., Principal Exchange-Traded Funds, and other fund complexes. The Fund generally allocates approximately 50% of its assets to equity index funds to gain broad market capitalization exposure to both U.S. and non-U.S. investments and approximately 50% to fixed-income index funds. The asset class diversification of the Fund is designed to moderate overall price volatility and cushion severe losses in any one investment sector. Global equity and fixed income markets posted positive returns in 2025. Ex-U.S. equities were the leaders, benefiting from attractive valuations, fiscal policy expansions, and a weakening U.S. dollar. U.S. equities gained on above trend economic strength, upheld by strong consumers and robust corporate balance sheets. Within U.S. equities, large-cap equities achieved the strongest earnings growth and outperformed mid- and small-cap equities. U.S. core fixed income lagged equities in the strong risk-on market but still posted a positive return for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](icc172791ab128676dcaa6e69.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 2 Shares at net asset value $19,454** | **Bloomberg US Aggregate Index $12,199** |
| **12/15** | 10000 | 10000 |
| **1/16** | 9823 | 10138 |
| **2/16** | 9832 | 10210 |
| **3/16** | 10196 | 10303 |
| **4/16** | 10252 | 10343 |
| **5/16** | 10317 | 10345 |
| **6/16** | 10401 | 10531 |
| **7/16** | 10616 | 10598 |
| **8/16** | 10623 | 10586 |
| **9/16** | 10623 | 10580 |
| **10/16** | 10462 | 10499 |
| **11/16** | 10528 | 10250 |
| **12/16** | 10642 | 10265 |
| **1/17** | 10745 | 10285 |
| **2/17** | 10944 | 10354 |
| **3/17** | 11048 | 10428 |
| **4/17** | 11161 | 10509 |
| **5/17** | 11189 | 10498 |
| **6/17** | 11312 | 10543 |
| **7/17** | 11349 | 10638 |
| **8/17** | 11464 | 10587 |
| **9/17** | 11580 | 10593 |
| **10/17** | 11724 | 10580 |
| **12/17** | 11802 | 10628 |
| **1/18** | 12013 | 10506 |
| **2/18** | 11744 | 10406 |
| **3/18** | 11686 | 10473 |
| **4/18** | 11657 | 10395 |
| **5/18** | 11821 | 10469 |
| **6/18** | 11821 | 10456 |
| **7/18** | 12004 | 10459 |
| **8/18** | 12187 | 10526 |
| **9/18** | 12149 | 10458 |
| **10/18** | 11686 | 10376 |
| **11/18** | 11807 | 10438 |
| **12/18** | 11424 | 10629 |
| **1/19** | 11928 | 10742 |
| **2/19** | 12119 | 10736 |
| **3/19** | 12290 | 10942 |
| **4/19** | 12512 | 10945 |
| **5/19** | 12220 | 11139 |
| **6/19** | 12703 | 11279 |
| **7/19** | 12764 | 11304 |
| **8/19** | 12804 | 11597 |
| **9/19** | 12901 | 11535 |
| **10/19** | 13046 | 11570 |
| **11/19** | 13244 | 11564 |
| **12/19** | 13421 | 11556 |
| **1/20** | 13483 | 11778 |
| **2/20** | 13078 | 11990 |
| **3/20** | 12204 | 11920 |
| **4/20** | 13005 | 12132 |
| **5/20** | 13337 | 12188 |
| **6/20** | 13514 | 12265 |
| **7/20** | 13920 | 12448 |
| **8/20** | 14273 | 12348 |
| **9/20** | 14022 | 12341 |
| **10/20** | 13857 | 12286 |
| **11/20** | 14705 | 12406 |
| **12/20** | 15036 | 12423 |
| **1/21** | 14958 | 12334 |
| **2/21** | 15058 | 12156 |
| **3/21** | 15267 | 12005 |
| **4/21** | 15663 | 12099 |
| **5/21** | 15763 | 12139 |
| **6/21** | 15917 | 12224 |
| **7/21** | 16126 | 12361 |
| **8/21** | 16302 | 12337 |
| **9/21** | 15889 | 12230 |
| **10/21** | 16325 | 12227 |
| **11/21** | 16221 | 12263 |
| **12/21** | 16531 | 12232 |
| **1/22** | 15946 | 11968 |
| **2/22** | 15672 | 11835 |
| **3/22** | 15637 | 11506 |
| **4/22** | 14721 | 11069 |
| **5/22** | 14824 | 11141 |
| **6/22** | 14847 | 11234 |
| **7/22** | 14343 | 10917 |
| **8/22** | 13844 | 10310 |
| **9/22** | 14536 | 10689 |
| **12/22** | 14113 | 10641 |
| **1/23** | 14806 | 10968 |
| **2/23** | 14434 | 10684 |
| **3/23** | 14767 | 10956 |
| **4/23** | 14883 | 11022 |
| **5/23** | 14742 | 10902 |
| **6/23** | 15165 | 10863 |
| **7/23** | 15396 | 10856 |
| **8/23** | 15229 | 10786 |
| **9/23** | 14675 | 10512 |
| **10/23** | 14347 | 10346 |
| **11/23** | 15263 | 10815 |
| **12/23** | 15960 | 11229 |
| **1/24** | 15988 | 11198 |
| **2/24** | 16234 | 11040 |
| **3/24** | 16562 | 11142 |
| **4/24** | 16015 | 10860 |
| **5/24** | 16521 | 11044 |
| **6/24** | 16726 | 11149 |
| **7/24** | 17137 | 11409 |
| **8/24** | 17410 | 11573 |
| **9/24** | 17655 | 11728 |
| **10/24** | 17283 | 11437 |
| **11/24** | 17812 | 11558 |
| **12/24** | 17369 | 11369 |
| **1/25** | 17684 | 11430 |
| **2/25** | 17755 | 11681 |
| **3/25** | 17383 | 11685 |
| **4/25** | 17412 | 11731 |
| **5/25** | 17827 | 11647 |
| **6/25** | 18327 | 11826 |
| **7/25** | 18428 | 11795 |
| **8/25** | 18785 | 11936 |
| **9/25** | 19148 | 12067 |
| **10/25** | 19357 | 12142 |
| **11/25** | 19454 | 12217 |
| **12/25** | 19454 | 12199 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 2 Shares | 12.00% | 5.29% | 6.88% |
| Bloomberg US Aggregate Index | 7.30% | -0.36% | 2.01% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Bloomberg US Aggregate Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Fund uses a blended benchmark, Diversified Balanced Strategic Allocation Custom Index. The largest component of the blended benchmark is included as an additional index for the Fund to show how the Fund's performance compares with returns of indices of funds with similar investment objectives. The weightings of the Diversified Balanced Strategic Allocation Custom Index are as follows: 50% Bloomberg US Aggregate Index, 35% S&P 500 Index, 7% MSCI EAFE Index NTR, 4% S&P MidCap 400 Index, and 4% S&P SmallCap 600 Index. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$87,617

* Total Number of Portfolio Holdings5

* Portfolio Turnover Rate 20.6%

* Total Advisory Fees Paid (amount in thousands)$49

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 100.03% |
| Other Assets and Liabilities | (0.03)% |
| Total Net Assets | 100.00% |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Fixed Income Funds | 50.12% |
| Domestic Equity Funds | 42.83% |
| International Equity Funds | 7.08% |
| Other Assets and Liabilities | (0.03)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
This is a summary of certain changes to the Fund since December 31, 2024. For more complete information, you may review the Fund's most recent prospectus, which we expect to be effective by May 1 or upon request at www.PrincipalAM.com/pvcprospectuses.

On December 9, 2025, the Fund's Board of Directors approved the acquisition of the assets of Diversified Balanced Strategic Allocation Account by the Diversified Balanced Adaptive Allocation Account. The proposed merger is expected to occur on or about May 1, 2026.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC43AR2-0

# Class 2

# Diversified Growth Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Diversified Growth Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $32 | 0.30% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide long-term capital appreciation. The Fund operates as a fund of funds and invests in funds of Principal Funds, Inc., Principal Variable Contracts Funds, Inc., Principal Exchange-Traded Funds, and other fund complexes. The Fund generally allocates approximately 65% of its assets to equity index funds to gain broad market capitalization exposure to both U.S. and non-U.S. investments and approximately 35% to fixed-income index funds for intermediate duration fixed-income exposure. The asset class diversification of the Fund is designed to moderate overall price volatility and cushion severe losses in any one investment sector. Global equity and fixed income markets posted positive returns in 2025. Ex-U.S. equities were the leaders, benefiting from attractive valuations, fiscal policy expansions, and a weakening U.S. dollar. U.S. equities gained on above trend economic strength, upheld by strong consumers and robust corporate balance sheets. Within U.S. equities, large-cap equities achieved the strongest earnings growth and outperformed mid- and small-cap equities. U.S. core fixed income lagged equities in the strong risk-on market but still posted a positive return for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i2e18efcfcaf3ae69f7813d9e.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 2 Shares at net asset value $23,451** | **S&P 500 Index $39,827** |
| **12/15** | 10000 | 10000 |
| **1/16** | 9708 | 9504 |
| **2/16** | 9702 | 9491 |
| **3/16** | 10166 | 10135 |
| **4/16** | 10232 | 10174 |
| **5/16** | 10332 | 10357 |
| **6/16** | 10378 | 10384 |
| **7/16** | 10656 | 10766 |
| **8/16** | 10672 | 10782 |
| **9/16** | 10679 | 10784 |
| **10/16** | 10489 | 10587 |
| **11/16** | 10665 | 10979 |
| **12/16** | 10814 | 11196 |
| **1/17** | 10950 | 11408 |
| **2/17** | 11201 | 11861 |
| **3/17** | 11351 | 11997 |
| **4/17** | 11473 | 12166 |
| **5/17** | 11527 | 12242 |
| **6/17** | 11683 | 12494 |
| **7/17** | 11715 | 12532 |
| **8/17** | 11889 | 12790 |
| **9/17** | 12050 | 13089 |
| **10/17** | 12260 | 13490 |
| **12/17** | 12351 | 13640 |
| **1/18** | 12714 | 14421 |
| **2/18** | 12337 | 13890 |
| **3/18** | 12225 | 13537 |
| **4/18** | 12232 | 13589 |
| **5/18** | 12428 | 13916 |
| **6/18** | 12449 | 14002 |
| **7/18** | 12714 | 14523 |
| **8/18** | 12945 | 14996 |
| **9/18** | 12931 | 15081 |
| **10/18** | 12264 | 14050 |
| **11/18** | 12424 | 14337 |
| **12/18** | 11794 | 13042 |
| **1/19** | 12460 | 14087 |
| **2/19** | 12728 | 14540 |
| **3/19** | 12902 | 14822 |
| **4/19** | 13220 | 15422 |
| **5/19** | 12735 | 14442 |
| **6/19** | 13365 | 15460 |
| **7/19** | 13437 | 15682 |
| **8/19** | 13379 | 15434 |
| **9/19** | 13544 | 15723 |
| **10/19** | 13751 | 16063 |
| **11/19** | 14026 | 16646 |
| **12/19** | 14294 | 17149 |
| **1/20** | 14294 | 17142 |
| **2/20** | 13613 | 15731 |
| **3/20** | 12405 | 13788 |
| **4/20** | 13429 | 15555 |
| **5/20** | 13888 | 16296 |
| **6/20** | 14118 | 16620 |
| **7/20** | 14622 | 17558 |
| **8/20** | 15173 | 18820 |
| **9/20** | 14816 | 18105 |
| **10/20** | 14590 | 17623 |
| **11/20** | 15785 | 19552 |
| **12/20** | 16261 | 20304 |
| **1/21** | 16188 | 20099 |
| **2/21** | 16430 | 20653 |
| **3/21** | 16802 | 21558 |
| **4/21** | 17350 | 22708 |
| **5/21** | 17488 | 22867 |
| **6/21** | 17689 | 23401 |
| **7/21** | 17931 | 23956 |
| **8/21** | 18222 | 24685 |
| **9/21** | 17659 | 23537 |
| **10/21** | 18339 | 25186 |
| **11/21** | 18167 | 25011 |
| **12/21** | 18666 | 26132 |
| **1/22** | 17891 | 24780 |
| **2/22** | 17538 | 24038 |
| **3/22** | 17668 | 24931 |
| **4/22** | 16488 | 22757 |
| **5/22** | 16600 | 22798 |
| **6/22** | 16583 | 22845 |
| **7/22** | 15963 | 21913 |
| **8/22** | 15464 | 21506 |
| **9/22** | 16338 | 22708 |
| **12/22** | 15736 | 21399 |
| **1/23** | 16639 | 22744 |
| **2/23** | 16231 | 22189 |
| **3/23** | 16620 | 23004 |
| **4/23** | 16785 | 23363 |
| **5/23** | 16639 | 23464 |
| **6/23** | 17319 | 25015 |
| **7/23** | 17698 | 25818 |
| **8/23** | 17387 | 25407 |
| **9/23** | 16687 | 24196 |
| **10/23** | 16296 | 23687 |
| **11/23** | 17480 | 25850 |
| **12/23** | 18347 | 27025 |
| **1/24** | 18400 | 27479 |
| **2/24** | 18887 | 28946 |
| **3/24** | 19341 | 29878 |
| **4/24** | 18633 | 28657 |
| **5/24** | 19341 | 30078 |
| **6/24** | 19627 | 31157 |
| **7/24** | 20113 | 31537 |
| **8/24** | 20483 | 32302 |
| **9/24** | 20797 | 32992 |
| **10/24** | 20374 | 32692 |
| **11/24** | 21175 | 34611 |
| **12/24** | 20597 | 33786 |
| **1/25** | 21053 | 34727 |
| **2/25** | 21042 | 34274 |
| **3/25** | 20374 | 32343 |
| **4/25** | 20352 | 32124 |
| **5/25** | 21075 | 34146 |
| **6/25** | 21798 | 35882 |
| **7/25** | 21965 | 36687 |
| **8/25** | 22466 | 37431 |
| **9/25** | 22986 | 38797 |
| **10/25** | 23273 | 39706 |
| **11/25** | 23423 | 39803 |
| **12/25** | 23451 | 39827 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 2 Shares | 13.86% | 7.60% | 8.90% |
| S&P 500 Index | 17.88% | 14.42% | 14.82% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The S&P 500 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Fund uses a blended benchmark, Diversified Growth Custom Index. The largest component of the blended benchmark is included as an additional index for the Fund to show how the Fund's performance compares with returns of indices of funds with similar investment objectives. The weightings of the Diversified Growth Custom Index are as follows: 45% S&P 500 Index, 35% Bloomberg US Aggregate Index, 10% MSCI EAFE Index NTR, 5% S&P MidCap 400 Index, and 5% S&P SmallCap 600 Index. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$1,852,824

* Total Number of Portfolio Holdings5

* Portfolio Turnover Rate 19.8%

* Total Advisory Fees Paid (amount in thousands)$1,034

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 100.03% |
| Other Assets and Liabilities | (0.03)% |
| Total Net Assets | 100.00% |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Domestic Equity Funds | 54.84% |
| Fixed Income Funds | 35.08% |
| International Equity Funds | 10.11% |
| Other Assets and Liabilities | (0.03)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC7AR2-0

# Class 2

# Diversified Growth Adaptive Allocation Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Diversified Growth Adaptive Allocation Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $38 | 0.37% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide long-term capital appreciation, while seeking to control volatility. The Fund operates as a fund of funds and invests in funds of Principal Funds, Inc., Principal Variable Contracts Funds, Inc., Principal Exchange-Traded Funds, and other fund complexes. The Fund also invests in derivative instruments. During periods of lower equity market volatility, the Fund generally allocates 65% of its assets to equity index funds to gain broad market capitalization exposure to both U.S. and non-U.S. equity investments, and 35% to fixed-income funds for intermediate duration fixed-income exposure. During higher equity market volatility, the Fund implements a volatility control strategy to hedge its equity exposure. Global equity and fixed income markets posted positive returns in 2025. Ex-U.S. equities were the leaders, benefiting from attractive valuations, fiscal policy expansions, and a weakening U.S. dollar. U.S. equities gained on above trend economic strength, upheld by strong consumers and robust corporate balance sheets. Within U.S. equities, large-cap equities achieved the strongest earnings growth and outperformed mid- and small-cap equities. U.S. core fixed income lagged equities in the strong risk-on market but still posted a positive return for the year. Additionally, the Fund's use of a volatility mitigation strategy reduced the Fund's participation in market gains, detracting from performance for the year.

## How did the Fund perform since inception?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i0f8fc8bf4b8b22d68045897d.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 2 Shares at net asset value $18,058** | **S&P 500 Index $33,463** |
| **3/17** | 10000 | 10000 |
| **4/17** | 10090 | 10080 |
| **5/17** | 10200 | 10222 |
| **6/17** | 10240 | 10286 |
| **7/17** | 10380 | 10497 |
| **8/17** | 10410 | 10529 |
| **9/17** | 10560 | 10746 |
| **10/17** | 10710 | 10997 |
| **11/17** | 10890 | 11334 |
| **12/17** | 10970 | 11460 |
| **1/18** | 11310 | 12117 |
| **2/18** | 10920 | 11670 |
| **3/18** | 10760 | 11373 |
| **4/18** | 10740 | 11417 |
| **5/18** | 10910 | 11692 |
| **6/18** | 10930 | 11764 |
| **7/18** | 11160 | 12202 |
| **8/18** | 11360 | 12599 |
| **9/18** | 11344 | 12671 |
| **10/18** | 10809 | 11805 |
| **11/18** | 10910 | 12046 |
| **12/18** | 10466 | 10958 |
| **1/19** | 10829 | 11836 |
| **2/19** | 11031 | 12216 |
| **3/19** | 11182 | 12454 |
| **4/19** | 11465 | 12958 |
| **5/19** | 11041 | 12134 |
| **6/19** | 11566 | 12990 |
| **7/19** | 11636 | 13176 |
| **8/19** | 11556 | 12968 |
| **9/19** | 11669 | 13210 |
| **10/19** | 11843 | 13496 |
| **11/19** | 12079 | 13986 |
| **12/19** | 12305 | 14408 |
| **1/20** | 12315 | 14403 |
| **2/20** | 11895 | 13217 |
| **3/20** | 11443 | 11585 |
| **4/20** | 11628 | 13070 |
| **5/20** | 11843 | 13692 |
| **6/20** | 11987 | 13964 |
| **7/20** | 12264 | 14752 |
| **8/20** | 12725 | 15812 |
| **9/20** | 12436 | 15211 |
| **10/20** | 12236 | 14807 |
| **11/20** | 13039 | 16428 |
| **12/20** | 13409 | 17059 |
| **1/21** | 13346 | 16887 |
| **2/21** | 13505 | 17353 |
| **3/21** | 13769 | 18113 |
| **4/21** | 14213 | 19079 |
| **5/21** | 14329 | 19213 |
| **6/21** | 14488 | 19661 |
| **7/21** | 14700 | 20128 |
| **8/21** | 14932 | 20740 |
| **9/21** | 14468 | 19776 |
| **10/21** | 15022 | 21161 |
| **11/21** | 14881 | 21014 |
| **12/21** | 15271 | 21956 |
| **1/22** | 14620 | 20820 |
| **2/22** | 14425 | 20197 |
| **3/22** | 14370 | 20947 |
| **4/22** | 13567 | 19120 |
| **5/22** | 13632 | 19155 |
| **6/22** | 13698 | 19194 |
| **7/22** | 13220 | 18412 |
| **8/22** | 12887 | 18069 |
| **9/22** | 13624 | 19079 |
| **12/22** | 13160 | 17980 |
| **1/23** | 13826 | 19109 |
| **2/23** | 13481 | 18643 |
| **3/23** | 13755 | 19328 |
| **4/23** | 13897 | 19629 |
| **5/23** | 13779 | 19715 |
| **6/23** | 14337 | 21017 |
| **7/23** | 14646 | 21693 |
| **8/23** | 14397 | 21347 |
| **9/23** | 13821 | 20329 |
| **10/23** | 13479 | 19902 |
| **11/23** | 14469 | 21719 |
| **12/23** | 15178 | 22706 |
| **1/24** | 15227 | 23088 |
| **2/24** | 15618 | 24321 |
| **3/24** | 15997 | 25103 |
| **4/24** | 15422 | 24078 |
| **5/24** | 16009 | 25272 |
| **6/24** | 16241 | 26178 |
| **7/24** | 16632 | 26497 |
| **8/24** | 16730 | 27140 |
| **9/24** | 16993 | 27719 |
| **10/24** | 16652 | 27468 |
| **11/24** | 17295 | 29080 |
| **12/24** | 16829 | 28387 |
| **1/25** | 17207 | 29178 |
| **2/25** | 17194 | 28797 |
| **3/25** | 16640 | 27174 |
| **4/25** | 16035 | 26990 |
| **5/25** | 16287 | 28689 |
| **6/25** | 16778 | 30148 |
| **7/25** | 16917 | 30825 |
| **8/25** | 17308 | 31449 |
| **9/25** | 17699 | 32597 |
| **10/25** | 17920 | 33361 |
| **11/25** | 18031 | 33442 |
| **12/25** | 18058 | 33463 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **Since Inception<sup>Footnote Reference\*</sup>** |
| Class 2 Shares | 7.31% | 6.13% | 6.98% |
| S&P 500 Index | 17.88% | 14.42% | 14.79% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Since inception performance is calculated from March 30, 2017, the inception date of the Fund. |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The S&P 500 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Fund uses a blended benchmark, Diversified Growth Adaptive Allocation Custom Index. The largest component of the blended benchmark is included as an additional index for the Fund to show how the Fund's performance compares with returns of indices of funds with similar investment objectives. The weightings of the Diversified Growth Adaptive Allocation Custom Index are as follows: 45% S&P 500 Index, 35% Bloomberg US Aggregate Index, 10% MSCI EAFE Index NTR, 5% S&P MidCap 400 Index, and 5% S&P SmallCap 600 Index. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$1,453,120

* Total Number of Portfolio Holdings7

* Portfolio Turnover Rate 44.4%

* Total Advisory Fees Paid (amount in thousands)$1,776

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 100.11% |
| Other Assets and Liabilities | (0.11)% |
| Total Net Assets | 100.00% |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Fixed Income Funds | 35.08% |
| Domestic Equity Funds | 34.81% |
| Exchange-Traded Funds | 20.13% |
| International Equity Funds | 10.09% |
| Money Market Funds | 0.00% |
| Other Assets and Liabilities | (0.11)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC53AR2-0

# Class 2

# Diversified Growth Strategic Allocation Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Diversified Growth Strategic Allocation Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.**This report describes certain changes to the Fund that occurred during the reporting period.**

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $33 | 0.31% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide long-term capital appreciation, with an emphasis on managing volatility. The Fund operates as a fund of funds and invests in funds of Principal Funds, Inc., Principal Variable Contracts Funds, Inc., Principal Exchange-Traded Funds, and other fund complexes. The Fund generally allocates 65% of its assets to equity index funds to gain broad market capitalization exposure to both U.S. and non-U.S. investments and approximately 35% to fixed-income index funds for intermediate duration fixed-income exposure. The asset class diversification of the Fund is designed to moderate overall price volatility and cushion severe losses in any one investment sector. Global equity and fixed income markets posted positive returns in 2025. Ex-U.S. equities were the leaders, benefiting from attractive valuations, fiscal policy expansions, and a weakening U.S. dollar. U.S. equities gained on above trend economic strength, upheld by strong consumers and robust corporate balance sheets. Within U.S. equities, large-cap equities achieved the strongest earnings growth and outperformed mid- and small-cap equities. U.S. core fixed income lagged equities in the strong risk-on market but still posted a positive return for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](ia600dcbb2580cc576e79198e.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 2 Shares at net asset value $22,396** | **S&P 500 Index $39,827** |
| **12/15** | 10000 | 10000 |
| **1/16** | 9731 | 9504 |
| **2/16** | 9713 | 9491 |
| **3/16** | 10158 | 10135 |
| **4/16** | 10222 | 10174 |
| **5/16** | 10306 | 10357 |
| **6/16** | 10352 | 10384 |
| **7/16** | 10621 | 10766 |
| **8/16** | 10634 | 10782 |
| **9/16** | 10634 | 10784 |
| **10/16** | 10447 | 10587 |
| **11/16** | 10606 | 10979 |
| **12/16** | 10756 | 11196 |
| **1/17** | 10888 | 11408 |
| **2/17** | 11122 | 11861 |
| **3/17** | 11254 | 11997 |
| **4/17** | 11376 | 12166 |
| **5/17** | 11423 | 12242 |
| **6/17** | 11573 | 12494 |
| **7/17** | 11597 | 12532 |
| **8/17** | 11770 | 12790 |
| **9/17** | 11923 | 13089 |
| **10/17** | 12115 | 13490 |
| **12/17** | 12191 | 13640 |
| **1/18** | 12536 | 14421 |
| **2/18** | 12201 | 13890 |
| **3/18** | 12105 | 13537 |
| **4/18** | 12095 | 13589 |
| **5/18** | 12278 | 13916 |
| **6/18** | 12297 | 14002 |
| **7/18** | 12536 | 14523 |
| **8/18** | 12747 | 14996 |
| **9/18** | 12732 | 15081 |
| **10/18** | 12128 | 14050 |
| **11/18** | 12279 | 14337 |
| **12/18** | 11695 | 13042 |
| **1/19** | 12329 | 14087 |
| **2/19** | 12571 | 14540 |
| **3/19** | 12742 | 14822 |
| **4/19** | 13045 | 15422 |
| **5/19** | 12581 | 14442 |
| **6/19** | 13175 | 15460 |
| **7/19** | 13246 | 15682 |
| **8/19** | 13196 | 15434 |
| **9/19** | 13359 | 15723 |
| **10/19** | 13546 | 16063 |
| **11/19** | 13806 | 16646 |
| **12/19** | 14055 | 17149 |
| **1/20** | 14065 | 17142 |
| **2/20** | 13432 | 15731 |
| **3/20** | 12268 | 13788 |
| **4/20** | 13255 | 15555 |
| **5/20** | 13681 | 16296 |
| **6/20** | 13889 | 16620 |
| **7/20** | 14367 | 17558 |
| **8/20** | 14876 | 18820 |
| **9/20** | 14548 | 18105 |
| **10/20** | 14327 | 17623 |
| **11/20** | 15447 | 19552 |
| **12/20** | 15890 | 20304 |
| **1/21** | 15824 | 20099 |
| **2/21** | 16034 | 20653 |
| **3/21** | 16378 | 21558 |
| **4/21** | 16888 | 22708 |
| **5/21** | 17021 | 22867 |
| **6/21** | 17199 | 23401 |
| **7/21** | 17420 | 23956 |
| **8/21** | 17687 | 24685 |
| **9/21** | 17156 | 23537 |
| **10/21** | 17768 | 25186 |
| **11/21** | 17606 | 25011 |
| **12/21** | 18068 | 26132 |
| **1/22** | 17341 | 24780 |
| **2/22** | 17018 | 24038 |
| **3/22** | 17110 | 24931 |
| **4/22** | 16002 | 22757 |
| **5/22** | 16106 | 22798 |
| **6/22** | 16106 | 22845 |
| **7/22** | 15529 | 21913 |
| **8/22** | 15075 | 21506 |
| **9/22** | 15897 | 22708 |
| **12/22** | 15336 | 21399 |
| **1/23** | 16171 | 22744 |
| **2/23** | 15780 | 22189 |
| **3/23** | 16132 | 23004 |
| **4/23** | 16262 | 23363 |
| **5/23** | 16119 | 23464 |
| **6/23** | 16732 | 25015 |
| **7/23** | 17072 | 25818 |
| **8/23** | 16850 | 25407 |
| **9/23** | 16207 | 24196 |
| **10/23** | 15798 | 23687 |
| **11/23** | 16911 | 25850 |
| **12/23** | 17728 | 27025 |
| **1/24** | 17770 | 27479 |
| **2/24** | 18206 | 28946 |
| **3/24** | 18629 | 29878 |
| **4/24** | 17967 | 28657 |
| **5/24** | 18629 | 30078 |
| **6/24** | 18882 | 31157 |
| **7/24** | 19333 | 31537 |
| **8/24** | 19657 | 32302 |
| **9/24** | 19940 | 32992 |
| **10/24** | 19538 | 32692 |
| **11/24** | 20252 | 34611 |
| **12/24** | 19717 | 33786 |
| **1/25** | 20133 | 34727 |
| **2/25** | 20133 | 34274 |
| **3/25** | 19583 | 32343 |
| **4/25** | 19613 | 32124 |
| **5/25** | 20267 | 34146 |
| **6/25** | 20920 | 35882 |
| **7/25** | 21069 | 36687 |
| **8/25** | 21529 | 37431 |
| **9/25** | 21991 | 38797 |
| **10/25** | 22261 | 39706 |
| **11/25** | 22396 | 39803 |
| **12/25** | 22396 | 39827 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 2 Shares | 13.59% | 7.10% | 8.40% |
| S&P 500 Index | 17.88% | 14.42% | 14.82% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The S&P 500 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Fund uses a blended benchmark, Diversified Growth Strategic Allocation Custom Index. The largest component of the blended benchmark is included as an additional index for the Fund to show how the Fund's performance compares with returns of indices of funds with similar investment objectives. The weightings of the Diversified Growth Strategic Allocation Custom Index are as follows: 45% S&P 500 Index, 35% Bloomberg US Aggregate Index, 10% MSCI EAFE Index NTR, 5% S&P MidCap 400 Index, and 5% S&P SmallCap 600 Index. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$196,161

* Total Number of Portfolio Holdings5

* Portfolio Turnover Rate 22.2%

* Total Advisory Fees Paid (amount in thousands)$109

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 100.03% |
| Other Assets and Liabilities | (0.03)% |
| Total Net Assets | 100.00% |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Domestic Equity Funds | 54.81% |
| Fixed Income Funds | 35.10% |
| International Equity Funds | 10.12% |
| Other Assets and Liabilities | (0.03)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
This is a summary of certain changes to the Fund since December 31, 2024. For more complete information, you may review the Fund's most recent prospectus, which we expect to be effective by May 1 or upon request at www.PrincipalAM.com/pvcprospectuses.

On December 9, 2025, the Fund's Board of Directors approved the acquisition of the assets of Diversified Growth Strategic Allocation Account by the Diversified Growth Adaptive Allocation Account. The proposed merger is expected to occur on or about May 1, 2026.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC44AR2-0

# Class 2

# Diversified Income Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Diversified Income Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $33 | 0.31% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide a high level of total return. The Fund operates as a fund of funds and invests in funds of Principal Funds, Inc., Principal Variable Contracts Funds, Inc., Principal Exchange-Traded Funds, and other fund complexes. The Fund generally allocates approximately 35% of its assets to equity index funds to gain broad market capitalization exposure to both U.S. and non-U.S. investments and approximately 65% to fixed-income index funds for intermediate duration fixed-income exposure. The asset class diversification of the Fund is designed to moderate overall price volatility and cushion severe losses in any one investment sector. Global equity and fixed income markets posted positive returns in 2025. Ex-U.S. equities were the leaders, benefiting from attractive valuations, fiscal policy expansions, and a weakening U.S. dollar. U.S. equities gained on above trend economic strength, upheld by strong consumers and robust corporate balance sheets. Within U.S. equities, large-cap equities achieved the strongest earnings growth and outperformed mid- and small-cap equities. U.S. core fixed income lagged equities in the strong risk-on market but still posted a positive return for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](if8357fd2a49a2fc38b1145c8.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 2 Shares at net asset value $17,267** | **Bloomberg US Aggregate Index $12,199** |
| **12/15** | 10000 | 10000 |
| **1/16** | 9907 | 10138 |
| **2/16** | 9941 | 10210 |
| **3/16** | 10236 | 10303 |
| **4/16** | 10286 | 10343 |
| **5/16** | 10337 | 10345 |
| **6/16** | 10455 | 10531 |
| **7/16** | 10632 | 10598 |
| **8/16** | 10633 | 10586 |
| **9/16** | 10624 | 10580 |
| **10/16** | 10488 | 10499 |
| **11/16** | 10470 | 10250 |
| **12/16** | 10556 | 10265 |
| **1/17** | 10633 | 10285 |
| **2/17** | 10796 | 10354 |
| **3/17** | 10898 | 10428 |
| **4/17** | 10992 | 10509 |
| **5/17** | 11018 | 10498 |
| **6/17** | 11112 | 10543 |
| **7/17** | 11171 | 10638 |
| **8/17** | 11232 | 10587 |
| **9/17** | 11320 | 10593 |
| **10/17** | 11416 | 10580 |
| **12/17** | 11486 | 10628 |
| **1/18** | 11600 | 10506 |
| **2/18** | 11364 | 10406 |
| **3/18** | 11346 | 10473 |
| **4/18** | 11302 | 10395 |
| **5/18** | 11442 | 10469 |
| **6/18** | 11451 | 10456 |
| **7/18** | 11582 | 10459 |
| **8/18** | 11731 | 10526 |
| **9/18** | 11690 | 10458 |
| **10/18** | 11321 | 10376 |
| **11/18** | 11429 | 10438 |
| **12/18** | 11213 | 10629 |
| **1/19** | 11609 | 10742 |
| **2/19** | 11735 | 10736 |
| **3/19** | 11924 | 10942 |
| **4/19** | 12086 | 10945 |
| **5/19** | 11933 | 11139 |
| **6/19** | 12320 | 11279 |
| **7/19** | 12374 | 11304 |
| **8/19** | 12491 | 11597 |
| **9/19** | 12539 | 11535 |
| **10/19** | 12661 | 11570 |
| **11/19** | 12792 | 11564 |
| **12/19** | 12913 | 11556 |
| **1/20** | 13035 | 11778 |
| **2/20** | 12801 | 11990 |
| **3/20** | 12184 | 11920 |
| **4/20** | 12829 | 12132 |
| **5/20** | 13091 | 12188 |
| **6/20** | 13240 | 12265 |
| **7/20** | 13586 | 12448 |
| **8/20** | 13801 | 12348 |
| **9/20** | 13622 | 12341 |
| **10/20** | 13486 | 12286 |
| **11/20** | 14126 | 12406 |
| **12/20** | 14368 | 12423 |
| **1/21** | 14291 | 12334 |
| **2/21** | 14291 | 12156 |
| **3/21** | 14407 | 12005 |
| **4/21** | 14708 | 12099 |
| **5/21** | 14785 | 12139 |
| **6/21** | 14931 | 12224 |
| **7/21** | 15115 | 12361 |
| **8/21** | 15231 | 12337 |
| **9/21** | 14924 | 12230 |
| **10/21** | 15217 | 12227 |
| **11/21** | 15166 | 12263 |
| **12/21** | 15368 | 12232 |
| **1/22** | 14873 | 11968 |
| **2/22** | 14631 | 11835 |
| **3/22** | 14509 | 11506 |
| **4/22** | 13721 | 11069 |
| **5/22** | 13822 | 11141 |
| **6/22** | 13873 | 11234 |
| **7/22** | 13418 | 10917 |
| **8/22** | 12849 | 10310 |
| **9/22** | 13451 | 10689 |
| **12/22** | 13134 | 10641 |
| **1/23** | 13736 | 10968 |
| **2/23** | 13375 | 10684 |
| **3/23** | 13714 | 10956 |
| **4/23** | 13813 | 11022 |
| **5/23** | 13681 | 10902 |
| **6/23** | 13966 | 10863 |
| **7/23** | 14119 | 10856 |
| **8/23** | 13955 | 10786 |
| **9/23** | 13478 | 10512 |
| **10/23** | 13199 | 10346 |
| **11/23** | 13989 | 10815 |
| **12/23** | 14605 | 11229 |
| **1/24** | 14617 | 11198 |
| **2/24** | 14733 | 11040 |
| **3/24** | 14977 | 11142 |
| **4/24** | 14500 | 10860 |
| **5/24** | 14919 | 11044 |
| **6/24** | 15093 | 11149 |
| **7/24** | 15465 | 11409 |
| **8/24** | 15709 | 11573 |
| **9/24** | 15945 | 11728 |
| **10/24** | 15595 | 11437 |
| **11/24** | 16006 | 11558 |
| **12/24** | 15643 | 11369 |
| **1/25** | 15861 | 11430 |
| **2/25** | 16006 | 11681 |
| **3/25** | 15715 | 11685 |
| **4/25** | 15728 | 11731 |
| **5/25** | 15970 | 11647 |
| **6/25** | 16381 | 11826 |
| **7/25** | 16441 | 11795 |
| **8/25** | 16720 | 11936 |
| **9/25** | 17017 | 12067 |
| **10/25** | 17175 | 12142 |
| **11/25** | 17280 | 12217 |
| **12/25** | 17267 | 12199 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 2 Shares | 10.38% | 3.74% | 5.61% |
| Bloomberg US Aggregate Index | 7.30% | -0.36% | 2.01% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Bloomberg US Aggregate Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Fund uses a blended benchmark, Diversified Income Custom Index. The largest component of the blended benchmark is included as an additional index for the Fund to show how the Fund's performance compares with returns of indices of funds with similar investment objectives. The weightings of the Diversified Income Custom Index are as follows: 65% Bloomberg US Aggregate Index, 25% S&P 500 Index, 4% MSCI EAFE Index NTR, 3% S&P MidCap 400 Index, and 3% S&P SmallCap 600 Index. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$180,099

* Total Number of Portfolio Holdings5

* Portfolio Turnover Rate 20.6%

* Total Advisory Fees Paid (amount in thousands)$97

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 100.03% |
| Other Assets and Liabilities | (0.03)% |
| Total Net Assets | 100.00% |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Fixed Income Funds | 65.10% |
| Domestic Equity Funds | 30.89% |
| International Equity Funds | 4.04% |
| Other Assets and Liabilities | (0.03)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC8AR2-0

# Class 1

# Diversified International Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Diversified International Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $100 | 0.86% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks long-term growth of capital. The Fund invests primarily in foreign equity securities. The Fund has no limitation on the percentage of assets that are invested in any one country or denominated in any one currency, but the Fund typically invests in foreign securities of at least 20 countries including emerging markets. The Fund invests in equity securities regardless of market capitalization size (small, medium, or large) and style (growth or value). Strong stock selection was achieved in Japan and France and the financials and industrials sectors. The top contributors for the Fund were Samsung Electronics, a Korean conglomerate with a focus on memory chips, benefited most notably from the swift upswing in the memory demand cycle. Erste Group Bank, an Austrian bank, raised its financial outlook for 2025 reflecting better loan volume. AIB Group, an Irish bank, outperformed while the corporate lending business was strong. On the other hand, negative attribution was faced in Germany and Canada and the communication services and consumer discretionary sectors. The detractors were SK Hynix, a Korean memory chip manufacturer, which the Fund didn't hold that benefited from strong memory chip demand for AI. Yum China Holdings, a Chinese quick service restaurant franchiser, moved lower on tougher local competition. Sanofi, a French pharmaceutical company, traded down as recent drug trials showed mixed results.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i975b80543161a285e385f1b9.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 1 Shares at net asset value $21,755** | **MSCI ACWI Ex USA Index NTR $22,432** |
| **12/15** | 10000 | 10000 |
| **1/16** | 9496 | 9320 |
| **2/16** | 9218 | 9213 |
| **3/16** | 9854 | 9962 |
| **4/16** | 10022 | 10225 |
| **5/16** | 10051 | 10052 |
| **6/16** | 9759 | 9898 |
| **7/16** | 10190 | 10388 |
| **8/16** | 10253 | 10454 |
| **9/16** | 10417 | 10582 |
| **10/16** | 10163 | 10430 |
| **11/16** | 9909 | 10189 |
| **12/16** | 10036 | 10450 |
| **1/17** | 10507 | 10820 |
| **2/17** | 10544 | 10992 |
| **3/17** | 11232 | 11512 |
| **4/17** | 11554 | 11886 |
| **5/17** | 11629 | 11922 |
| **6/17** | 12100 | 12362 |
| **7/17** | 12275 | 12427 |
| **8/17** | 12564 | 12657 |
| **9/17** | 12747 | 12896 |
| **10/17** | 12739 | 13000 |
| **12/17** | 12952 | 13291 |
| **1/18** | 13714 | 14031 |
| **2/18** | 12998 | 13370 |
| **3/18** | 12838 | 13134 |
| **4/18** | 13006 | 13343 |
| **5/18** | 12793 | 13035 |
| **6/18** | 12442 | 12790 |
| **7/18** | 12785 | 13096 |
| **8/18** | 12595 | 12822 |
| **9/18** | 12549 | 12880 |
| **10/18** | 11366 | 11833 |
| **11/18** | 11280 | 11945 |
| **12/18** | 10681 | 11404 |
| **1/19** | 11514 | 12266 |
| **2/19** | 11677 | 12506 |
| **3/19** | 11849 | 12580 |
| **4/19** | 12184 | 12912 |
| **5/19** | 11592 | 12219 |
| **6/19** | 12261 | 12955 |
| **7/19** | 12020 | 12798 |
| **8/19** | 11779 | 12403 |
| **9/19** | 12028 | 12722 |
| **10/19** | 12420 | 13166 |
| **11/19** | 12571 | 13282 |
| **12/19** | 13104 | 13857 |
| **1/20** | 12904 | 13485 |
| **2/20** | 12120 | 12419 |
| **3/20** | 10085 | 10621 |
| **4/20** | 10936 | 11426 |
| **5/20** | 11403 | 11800 |
| **6/20** | 11912 | 12333 |
| **7/20** | 12579 | 12883 |
| **8/20** | 13088 | 13434 |
| **9/20** | 12995 | 13104 |
| **10/20** | 12772 | 12822 |
| **11/20** | 14246 | 14547 |
| **12/20** | 15222 | 15334 |
| **1/21** | 15051 | 15367 |
| **2/21** | 15428 | 15671 |
| **3/21** | 15736 | 15869 |
| **4/21** | 16225 | 16336 |
| **5/21** | 16662 | 16847 |
| **6/21** | 16465 | 16738 |
| **7/21** | 16370 | 16462 |
| **8/21** | 16722 | 16775 |
| **9/21** | 16010 | 16238 |
| **10/21** | 16559 | 16626 |
| **11/21** | 15914 | 15877 |
| **12/21** | 16707 | 16533 |
| **1/22** | 15923 | 15924 |
| **2/22** | 15269 | 15609 |
| **3/22** | 15130 | 15634 |
| **4/22** | 14084 | 14652 |
| **5/22** | 14162 | 14757 |
| **6/22** | 13622 | 13949 |
| **7/22** | 12942 | 13501 |
| **8/22** | 12415 | 12515 |
| **9/22** | 13856 | 13992 |
| **12/22** | 13366 | 13887 |
| **1/23** | 14446 | 15014 |
| **2/23** | 13976 | 14487 |
| **3/23** | 14416 | 14841 |
| **4/23** | 14656 | 15099 |
| **5/23** | 14356 | 14550 |
| **6/23** | 14996 | 15203 |
| **7/23** | 15317 | 15821 |
| **8/23** | 14786 | 15106 |
| **9/23** | 14238 | 14629 |
| **10/23** | 13843 | 14025 |
| **11/23** | 14998 | 15288 |
| **12/23** | 15698 | 16056 |
| **1/24** | 15627 | 15897 |
| **2/24** | 16245 | 16299 |
| **3/24** | 16904 | 16808 |
| **4/24** | 16498 | 16507 |
| **5/24** | 17208 | 16986 |
| **6/24** | 16893 | 16970 |
| **7/24** | 17279 | 17363 |
| **8/24** | 17704 | 17857 |
| **9/24** | 17878 | 18338 |
| **10/24** | 16959 | 17438 |
| **11/24** | 16886 | 17280 |
| **12/24** | 16436 | 16945 |
| **1/25** | 17199 | 17627 |
| **2/25** | 17743 | 17872 |
| **3/25** | 17722 | 17831 |
| **4/25** | 18223 | 18475 |
| **5/25** | 19028 | 19322 |
| **6/25** | 19602 | 19977 |
| **7/25** | 19383 | 19920 |
| **8/25** | 20114 | 20611 |
| **9/25** | 20830 | 21354 |
| **10/25** | 21022 | 21785 |
| **11/25** | 21236 | 21780 |
| **12/25** | 21755 | 22432 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 32.36% | 7.40% | 8.08% |
| MSCI ACWI Ex USA Index NTR | 32.39% | 7.91% | 8.41% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$256,291

* Total Number of Portfolio Holdings106

* Portfolio Turnover Rate 33.7%

* Total Advisory Fees Paid (amount in thousands)$2,153

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Common Stocks | 99.29% |
| Investment Companies | 1.62% |
| Preferred Stocks | 0.02% |
| Other Assets and Liabilities | (0.93)% |
| Total Net Assets | 100.00% |

---

#### Geographic Allocation

---

| | |
|:---|:---|
| **Top Locations** | **Percent of Net Assets** |
| United Kingdom | 14.32% |
| Japan | 12.96% |
| France | 9.71% |
| Canada | 7.71% |
| Ireland | 5.70% |
| Netherlands | 5.06% |
| Germany | 5.03% |
| China | 5.03% |
| Taiwan | 4.78% |
| Korea, Republic Of | 2.77% |
| Hong Kong | 2.71% |
| Singapore | 2.44% |
| Greece | 2.29% |
| Sweden | 2.26% |
| Italy | 2.07% |
| Brazil | 1.68% |
| Austria | 1.49% |
| United States | 1.44% |
| Switzerland | 1.43% |
| India | 1.16% |
| Other Locations<sup>Footnote Reference\*</sup> | 8.89% |
| Other Assets and Liabilities | (0.93)% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes locations other than the top twenty and/or Investment Companies |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC9AR1-0

# Class 1

# Equity Income Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Equity Income Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $52 | 0.48% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide current income and long-term growth of income and capital. Under normal circumstances, the Fund invests at least 80% of its net assets in dividend-paying equity securities. The Fund defines dividend-paying equity securities as securities that produced dividend income within the last rolling 12 months. The Fund usually invests in equity securities of companies with large and medium market capitalizations. The Fund invests in value equity securities, an investment strategy that emphasizes buying equity securities that appear to be undervalued. The Fund also invests in securities of foreign issuers. Taiwan Semiconductor Manufacturing Co. (TSM) continues to see strong, broad-based AI momentum and as a result, raised guidance multiple times over the past year. Morgan Stanley (MS) aided relative performance as the company topped earnings expectations, driven by share gains in prime brokerage and trading activity. In addition, there was solid growth in its wealth channel and institutional securities came in higher than expected with strength in equities and strong client activity amid a more volatile trading environment. Cummins Inc. (CMI) is a leading manufacturer of diesel and natural gas engines. CMI aided results with double digit revenue growth and record margins in its power systems and distribution segments due to rising demand from data centers. Not owning Micron Technology, Inc. (MU) detracted from relative performance, as shares rallied during the year. Costco Wholesale Corporation (COST) delivered strong comparables during the year, but investors remained cautious about its current valuation. KKR & Co Inc (KKR) is an alternative asset manager specializing in private equity, credit, and real estate. KKR's capital markets business and the use of their balance sheet to invest into their funds separates them from other managers in the industry. KKR lagged during the year despite beating expectations as investors worried about credit concerns slowing demand for alternatives.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i8be4d2867f6b1c88e79f782d.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 1 Shares at net asset value $29,735** | **Russell 1000 Index $39,030** | **Russell 1000 Value Index $27,213** |
| **12/15** | 10000 | 10000 | 10000 |
| **1/16** | 9640 | 9462 | 9483 |
| **2/16** | 9682 | 9459 | 9481 |
| **3/16** | 10272 | 10117 | 10164 |
| **4/16** | 10434 | 10172 | 10377 |
| **5/16** | 10646 | 10351 | 10538 |
| **6/16** | 10761 | 10374 | 10630 |
| **7/16** | 10992 | 10769 | 10938 |
| **8/16** | 11088 | 10783 | 11023 |
| **9/16** | 11008 | 10792 | 11000 |
| **10/16** | 10864 | 10582 | 10829 |
| **11/16** | 11273 | 10999 | 11448 |
| **12/16** | 11572 | 11205 | 11734 |
| **1/17** | 11776 | 11431 | 11818 |
| **2/17** | 12175 | 11873 | 12242 |
| **3/17** | 12205 | 12006 | 12095 |
| **4/17** | 12460 | 12160 | 12083 |
| **5/17** | 12500 | 12244 | 12280 |
| **6/17** | 12759 | 12487 | 12444 |
| **7/17** | 12716 | 12526 | 12299 |
| **8/17** | 13071 | 12793 | 12663 |
| **9/17** | 13355 | 13086 | 12755 |
| **10/17** | 13855 | 13485 | 13146 |
| **12/17** | 14011 | 13636 | 13337 |
| **1/18** | 14591 | 14384 | 13853 |
| **2/18** | 13850 | 13856 | 13192 |
| **3/18** | 13699 | 13541 | 12959 |
| **4/18** | 13764 | 13587 | 13002 |
| **5/18** | 13968 | 13934 | 13079 |
| **6/18** | 13978 | 14024 | 13112 |
| **7/18** | 14698 | 14508 | 13631 |
| **8/18** | 14881 | 15008 | 13832 |
| **9/18** | 14909 | 15065 | 13860 |
| **10/18** | 14048 | 13999 | 13142 |
| **11/18** | 14537 | 14284 | 13534 |
| **12/18** | 13309 | 12983 | 12235 |
| **1/19** | 14246 | 14071 | 13187 |
| **2/19** | 14601 | 14548 | 13608 |
| **3/19** | 14770 | 14801 | 13695 |
| **4/19** | 15399 | 15399 | 14181 |
| **5/19** | 14537 | 14417 | 13269 |
| **6/19** | 15579 | 15430 | 14221 |
| **7/19** | 15922 | 15669 | 14339 |
| **8/19** | 15620 | 15382 | 13918 |
| **9/19** | 16162 | 15649 | 14414 |
| **10/19** | 16253 | 15980 | 14616 |
| **11/19** | 16728 | 16584 | 15068 |
| **12/19** | 17179 | 17063 | 15482 |
| **1/20** | 16802 | 17082 | 15149 |
| **2/20** | 15089 | 15686 | 13682 |
| **3/20** | 12798 | 13613 | 11344 |
| **4/20** | 14084 | 15412 | 12619 |
| **5/20** | 14620 | 16225 | 13051 |
| **6/20** | 14656 | 16584 | 12965 |
| **7/20** | 15497 | 17555 | 13477 |
| **8/20** | 16156 | 18843 | 14035 |
| **9/20** | 15805 | 18155 | 13690 |
| **10/20** | 15728 | 17717 | 13510 |
| **11/20** | 17567 | 19803 | 15327 |
| **12/20** | 18285 | 20640 | 15915 |
| **1/21** | 18028 | 20470 | 15769 |
| **2/21** | 18836 | 21064 | 16722 |
| **3/21** | 19656 | 21861 | 17706 |
| **4/21** | 20469 | 23037 | 18414 |
| **5/21** | 20866 | 23147 | 18844 |
| **6/21** | 20790 | 23727 | 18628 |
| **7/21** | 21084 | 24220 | 18777 |
| **8/21** | 21494 | 24921 | 19149 |
| **9/21** | 20346 | 23776 | 18483 |
| **10/21** | 21725 | 25426 | 19421 |
| **11/21** | 21235 | 25085 | 18737 |
| **12/21** | 22392 | 26101 | 19919 |
| **1/22** | 21817 | 24629 | 19455 |
| **2/22** | 21032 | 23953 | 19229 |
| **3/22** | 21542 | 24762 | 19772 |
| **4/22** | 20307 | 22554 | 18657 |
| **5/22** | 20856 | 22520 | 19020 |
| **6/22** | 20392 | 22556 | 18509 |
| **7/22** | 19757 | 21690 | 17957 |
| **8/22** | 19483 | 21261 | 18062 |
| **9/22** | 20925 | 22412 | 19191 |
| **12/22** | 20042 | 21108 | 18418 |
| **1/23** | 21295 | 22524 | 19372 |
| **2/23** | 20359 | 21988 | 18689 |
| **3/23** | 20065 | 22683 | 18603 |
| **4/23** | 20525 | 22964 | 18883 |
| **5/23** | 19483 | 23071 | 18155 |
| **6/23** | 20857 | 24629 | 19361 |
| **7/23** | 21673 | 25476 | 20042 |
| **8/23** | 20857 | 25031 | 19501 |
| **9/23** | 20118 | 23854 | 18748 |
| **10/23** | 19405 | 23278 | 18087 |
| **11/23** | 20985 | 25452 | 19451 |
| **12/23** | 22290 | 26708 | 20529 |
| **1/24** | 22362 | 27081 | 20550 |
| **2/24** | 22994 | 28543 | 21308 |
| **3/24** | 24064 | 29458 | 22373 |
| **4/24** | 23100 | 28205 | 21418 |
| **5/24** | 23878 | 29533 | 22097 |
| **6/24** | 23870 | 30510 | 21889 |
| **7/24** | 24988 | 30954 | 23008 |
| **8/24** | 25822 | 31688 | 23625 |
| **9/24** | 26178 | 32366 | 23953 |
| **10/24** | 25928 | 32139 | 23689 |
| **11/24** | 27548 | 34209 | 25202 |
| **12/24** | 25744 | 33255 | 23478 |
| **1/25** | 27055 | 34313 | 24565 |
| **2/25** | 26955 | 33713 | 24665 |
| **3/25** | 25911 | 31762 | 23980 |
| **4/25** | 25134 | 31573 | 23249 |
| **5/25** | 26220 | 33589 | 24065 |
| **6/25** | 27205 | 35290 | 24888 |
| **7/25** | 27447 | 36074 | 25031 |
| **8/25** | 28424 | 36833 | 25829 |
| **9/25** | 28790 | 38110 | 26214 |
| **10/25** | 28687 | 38932 | 26330 |
| **11/25** | 29894 | 39027 | 27030 |
| **12/25** | 29735 | 39030 | 27213 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 15.50% | 10.21% | 11.51% |
| Russell 1000 Index | 17.37% | 13.59% | 14.59% |
| Russell 1000 Value Index | 15.91% | 11.33% | 10.53% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Russell 1000 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Russell 1000 Value Index is included as an additional index for the Fund as it shows how the Fund's performance compares with the returns of an index of funds with similar investment objectives. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$679,484

* Total Number of Portfolio Holdings65

* Portfolio Turnover Rate 12.7%

* Total Advisory Fees Paid (amount in thousands)$3,270

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Common Stocks | 98.82% |
| Investment Companies | 1.78% |
| Other Assets and Liabilities | (0.60)% |
| Total Net Assets | 100.00% |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Financial | 25.26% |
| Consumer, Non-cyclical | 18.60% |
| Consumer, Cyclical | 14.91% |
| Technology | 11.06% |
| Industrial | 8.74% |
| Communications | 7.73% |
| Energy | 5.73% |
| Utilities | 4.56% |
| Basic Materials | 2.23% |
| Money Market Funds | 1.78% |
| Other Assets and Liabilities | (0.60)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC10AR1-0

# Class 2

# Equity Income Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Equity Income Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $79 | 0.73% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide current income and long-term growth of income and capital. Under normal circumstances, the Fund invests at least 80% of its net assets in dividend-paying equity securities. The Fund defines dividend-paying equity securities as securities that produced dividend income within the last rolling 12 months. The Fund usually invests in equity securities of companies with large and medium market capitalizations. The Fund invests in value equity securities, an investment strategy that emphasizes buying equity securities that appear to be undervalued. The Fund also invests in securities of foreign issuers. Taiwan Semiconductor Manufacturing Co. (TSM) continues to see strong, broad-based AI momentum and as a result, raised guidance multiple times over the past year. Morgan Stanley (MS) aided relative performance as the company topped earnings expectations, driven by share gains in prime brokerage and trading activity. In addition, there was solid growth in its wealth channel and institutional securities came in higher than expected with strength in equities and strong client activity amid a more volatile trading environment. Cummins Inc. (CMI) is a leading manufacturer of diesel and natural gas engines. CMI aided results with double digit revenue growth and record margins in its power systems and distribution segments due to rising demand from data centers. Not owning Micron Technology, Inc. (MU) detracted from relative performance, as shares rallied during the year. Costco Wholesale Corporation (COST) delivered strong comparables during the year, but investors remained cautious about its current valuation. KKR & Co Inc (KKR) is an alternative asset manager specializing in private equity, credit, and real estate. KKR's capital markets business and the use of their balance sheet to invest into their funds separates them from other managers in the industry. KKR lagged during the year despite beating expectations as investors worried about credit concerns slowing demand for alternatives.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i45f160e18d26e206958949f5.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 2 Shares at net asset value $29,010** | **Russell 1000 Index $39,030** | **Russell 1000 Value Index $27,213** |
| **12/15** | 10000 | 10000 | 10000 |
| **1/16** | 9638 | 9462 | 9483 |
| **2/16** | 9675 | 9459 | 9481 |
| **3/16** | 10265 | 10117 | 10164 |
| **4/16** | 10428 | 10172 | 10377 |
| **5/16** | 10632 | 10351 | 10538 |
| **6/16** | 10748 | 10374 | 10630 |
| **7/16** | 10976 | 10769 | 10938 |
| **8/16** | 11067 | 10783 | 11023 |
| **9/16** | 10987 | 10792 | 11000 |
| **10/16** | 10841 | 10582 | 10829 |
| **11/16** | 11247 | 10999 | 11448 |
| **12/16** | 11543 | 11205 | 11734 |
| **1/17** | 11744 | 11431 | 11818 |
| **2/17** | 12140 | 11873 | 12242 |
| **3/17** | 12165 | 12006 | 12095 |
| **4/17** | 12420 | 12160 | 12083 |
| **5/17** | 12450 | 12244 | 12280 |
| **6/17** | 12706 | 12487 | 12444 |
| **7/17** | 12663 | 12526 | 12299 |
| **8/17** | 13013 | 12793 | 12663 |
| **9/17** | 13294 | 13086 | 12755 |
| **10/17** | 13789 | 13485 | 13146 |
| **12/17** | 13940 | 13636 | 13337 |
| **1/18** | 14517 | 14384 | 13853 |
| **2/18** | 13773 | 13856 | 13192 |
| **3/18** | 13628 | 13541 | 12959 |
| **4/18** | 13682 | 13587 | 13002 |
| **5/18** | 13881 | 13934 | 13079 |
| **6/18** | 13892 | 14024 | 13112 |
| **7/18** | 14603 | 14508 | 13631 |
| **8/18** | 14781 | 15008 | 13832 |
| **9/18** | 14808 | 15065 | 13860 |
| **10/18** | 13951 | 13999 | 13142 |
| **11/18** | 14429 | 14284 | 13534 |
| **12/18** | 13210 | 12983 | 12235 |
| **1/19** | 14131 | 14071 | 13187 |
| **2/19** | 14487 | 14548 | 13608 |
| **3/19** | 14650 | 14801 | 13695 |
| **4/19** | 15274 | 15399 | 14181 |
| **5/19** | 14411 | 14417 | 13269 |
| **6/19** | 15443 | 15430 | 14221 |
| **7/19** | 15781 | 15669 | 14339 |
| **8/19** | 15478 | 15382 | 13918 |
| **9/19** | 16013 | 15649 | 14414 |
| **10/19** | 16098 | 15980 | 14616 |
| **11/19** | 16567 | 16584 | 15068 |
| **12/19** | 17012 | 17063 | 15482 |
| **1/20** | 16634 | 17082 | 15149 |
| **2/20** | 14935 | 15686 | 13682 |
| **3/20** | 12663 | 13613 | 11344 |
| **4/20** | 13930 | 15412 | 12619 |
| **5/20** | 14460 | 16225 | 13051 |
| **6/20** | 14497 | 16584 | 12965 |
| **7/20** | 15319 | 17555 | 13477 |
| **8/20** | 15964 | 18843 | 14035 |
| **9/20** | 15623 | 18155 | 13690 |
| **10/20** | 15540 | 17717 | 13510 |
| **11/20** | 17349 | 19803 | 15327 |
| **12/20** | 18058 | 20640 | 15915 |
| **1/21** | 17802 | 20470 | 15769 |
| **2/21** | 18595 | 21064 | 16722 |
| **3/21** | 19400 | 21861 | 17706 |
| **4/21** | 20199 | 23037 | 18414 |
| **5/21** | 20588 | 23147 | 18844 |
| **6/21** | 20505 | 23727 | 18628 |
| **7/21** | 20793 | 24220 | 18777 |
| **8/21** | 21189 | 24921 | 19149 |
| **9/21** | 20058 | 23776 | 18483 |
| **10/21** | 21406 | 25426 | 19421 |
| **11/21** | 20917 | 25085 | 18737 |
| **12/21** | 22057 | 26101 | 19919 |
| **1/22** | 21491 | 24629 | 19455 |
| **2/22** | 20709 | 23953 | 19229 |
| **3/22** | 21204 | 24762 | 19772 |
| **4/22** | 19986 | 22554 | 18657 |
| **5/22** | 20527 | 22520 | 19020 |
| **6/22** | 20058 | 22556 | 18509 |
| **7/22** | 19433 | 21690 | 17957 |
| **8/22** | 19159 | 21261 | 18062 |
| **9/22** | 20566 | 22412 | 19191 |
| **12/22** | 19693 | 21108 | 18418 |
| **1/23** | 20926 | 22524 | 19372 |
| **2/23** | 20002 | 21988 | 18689 |
| **3/23** | 19701 | 22683 | 18603 |
| **4/23** | 20152 | 22964 | 18883 |
| **5/23** | 19122 | 23071 | 18155 |
| **6/23** | 20475 | 24629 | 19361 |
| **7/23** | 21265 | 25476 | 20042 |
| **8/23** | 20460 | 25031 | 19501 |
| **9/23** | 19734 | 23854 | 18748 |
| **10/23** | 19033 | 23278 | 18087 |
| **11/23** | 20580 | 25452 | 19451 |
| **12/23** | 21845 | 26708 | 20529 |
| **1/24** | 21917 | 27081 | 20550 |
| **2/24** | 22530 | 28543 | 21308 |
| **3/24** | 23577 | 29458 | 22373 |
| **4/24** | 22627 | 28205 | 21418 |
| **5/24** | 23384 | 29533 | 22097 |
| **6/24** | 23368 | 30510 | 21889 |
| **7/24** | 24456 | 30954 | 23008 |
| **8/24** | 25269 | 31688 | 23625 |
| **9/24** | 25610 | 32366 | 23953 |
| **10/24** | 25362 | 32139 | 23689 |
| **11/24** | 26937 | 34209 | 25202 |
| **12/24** | 25171 | 33255 | 23478 |
| **1/25** | 26448 | 34313 | 24565 |
| **2/25** | 26340 | 33713 | 24665 |
| **3/25** | 25312 | 31762 | 23980 |
| **4/25** | 24557 | 31573 | 23249 |
| **5/25** | 25610 | 33589 | 24065 |
| **6/25** | 26564 | 35290 | 24888 |
| **7/25** | 26796 | 36074 | 25031 |
| **8/25** | 27749 | 36833 | 25829 |
| **9/25** | 28099 | 38110 | 26214 |
| **10/25** | 27987 | 38932 | 26330 |
| **11/25** | 29158 | 39027 | 27030 |
| **12/25** | 29010 | 39030 | 27213 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 2 Shares | 15.25% | 9.94% | 11.24% |
| Russell 1000 Index | 17.37% | 13.59% | 14.59% |
| Russell 1000 Value Index | 15.91% | 11.33% | 10.53% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Russell 1000 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Russell 1000 Value Index is included as an additional index for the Fund as it shows how the Fund's performance compares with the returns of an index of funds with similar investment objectives. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$679,484

* Total Number of Portfolio Holdings65

* Portfolio Turnover Rate 12.7%

* Total Advisory Fees Paid (amount in thousands)$3,270

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Common Stocks | 98.82% |
| Investment Companies | 1.78% |
| Other Assets and Liabilities | (0.60)% |
| Total Net Assets | 100.00% |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Financial | 25.26% |
| Consumer, Non-cyclical | 18.60% |
| Consumer, Cyclical | 14.91% |
| Technology | 11.06% |
| Industrial | 8.74% |
| Communications | 7.73% |
| Energy | 5.73% |
| Utilities | 4.56% |
| Basic Materials | 2.23% |
| Money Market Funds | 1.78% |
| Other Assets and Liabilities | (0.60)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC10AR2-0

# Class 1

# Global Emerging Markets Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Global Emerging Markets Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $133 | 1.12% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks long-term growth of capital. Under normal circumstances, the Fund invests at least 80% of its net assets in equity securities of emerging market companies. The Fund considers "emerging market" to mean any market that is considered to be an emerging market by the international financial community (including the MSCI Emerging Markets Index ("Index") or Bloomberg Emerging Markets USD Aggregate Bond Index). The Fund invests in equity securities regardless of market capitalization (small, medium, or large) and style (growth or value). The Fund's investments outperformed the Index during the 12 months ending December 2025. The Europe, Middle East, and Africa (EMEA) region was the main driver of outperformance, led by the Fund's Greek bank exposure and an underweight position to Saudi Arabia. Other notable markets during the last year were South Korea and Taiwan, both driven by positive stock selection in the information technology sector. The Fund's investment in Chinese media related companies drove outperformance in the communication services sector. Latin America was the worst performing region over the last twelve months, mostly driven by Argentina. The Fund's investment in an IT services provider accounted for losses in the market. Brazil was another notable detractor in Latin America with losses in the materials and financials sectors. Indonesia also detracted, primarily in the financials sector. The industrials sector underperformed the Index during the last year, attributable to negative stock selection in the transportation and capital goods industry groups.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i7de4e26cf90849c1548e6316.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 1 Shares at net asset value $21,836** | **MSCI Emerging Markets Index NTR $22,438** |
| **12/15** | 10000 | 10000 |
| **1/16** | 9464 | 9351 |
| **2/16** | 9224 | 9336 |
| **3/16** | 10357 | 10571 |
| **4/16** | 10365 | 10629 |
| **5/16** | 10062 | 10232 |
| **6/16** | 10505 | 10641 |
| **7/16** | 11040 | 11177 |
| **8/16** | 11293 | 11455 |
| **9/16** | 11513 | 11602 |
| **10/16** | 11481 | 11630 |
| **11/16** | 10979 | 11094 |
| **12/16** | 10940 | 11119 |
| **1/17** | 11724 | 11727 |
| **2/17** | 11991 | 12086 |
| **3/17** | 12533 | 12663 |
| **4/17** | 12823 | 13037 |
| **5/17** | 13114 | 13168 |
| **6/17** | 14165 | 13953 |
| **7/17** | 14533 | 14264 |
| **8/17** | 14557 | 14208 |
| **9/17** | 14867 | 14706 |
| **10/17** | 14907 | 14735 |
| **12/17** | 15407 | 15264 |
| **1/18** | 16860 | 16537 |
| **2/18** | 15995 | 15774 |
| **3/18** | 15828 | 15481 |
| **4/18** | 15439 | 15412 |
| **5/18** | 15042 | 14866 |
| **6/18** | 14287 | 14248 |
| **7/18** | 14430 | 14561 |
| **8/18** | 13779 | 14167 |
| **9/18** | 13697 | 14092 |
| **10/18** | 12361 | 12865 |
| **11/18** | 12659 | 13395 |
| **12/18** | 12168 | 13041 |
| **1/19** | 13134 | 14182 |
| **2/19** | 13053 | 14214 |
| **3/19** | 13271 | 14333 |
| **4/19** | 13601 | 14635 |
| **5/19** | 12578 | 13573 |
| **6/19** | 13407 | 14420 |
| **7/19** | 13037 | 14244 |
| **8/19** | 12691 | 13550 |
| **9/19** | 12882 | 13808 |
| **10/19** | 13349 | 14390 |
| **11/19** | 13333 | 14371 |
| **12/19** | 14310 | 15443 |
| **1/20** | 13625 | 14723 |
| **2/20** | 13065 | 13947 |
| **3/20** | 10810 | 11798 |
| **4/20** | 11821 | 12879 |
| **5/20** | 12121 | 12978 |
| **6/20** | 12932 | 13932 |
| **7/20** | 14160 | 15177 |
| **8/20** | 14577 | 15512 |
| **9/20** | 14393 | 15263 |
| **10/20** | 14735 | 15578 |
| **11/20** | 15856 | 17019 |
| **12/20** | 17063 | 18270 |
| **1/21** | 17807 | 18830 |
| **2/21** | 18021 | 18974 |
| **3/21** | 17875 | 18687 |
| **4/21** | 18243 | 19153 |
| **5/21** | 18620 | 19597 |
| **6/21** | 18851 | 19630 |
| **7/21** | 17747 | 18309 |
| **8/21** | 18029 | 18789 |
| **9/21** | 17223 | 18042 |
| **10/21** | 17458 | 18220 |
| **11/21** | 16673 | 17477 |
| **12/21** | 17161 | 17805 |
| **1/22** | 16891 | 17468 |
| **2/22** | 15748 | 16946 |
| **3/22** | 15172 | 16563 |
| **4/22** | 14413 | 15642 |
| **5/22** | 14535 | 15711 |
| **6/22** | 13567 | 14631 |
| **7/22** | 13471 | 14692 |
| **8/22** | 11806 | 12567 |
| **9/22** | 13640 | 14431 |
| **12/22** | 13273 | 14228 |
| **1/23** | 14433 | 15351 |
| **2/23** | 13501 | 14356 |
| **3/23** | 13957 | 14791 |
| **4/23** | 13808 | 14623 |
| **5/23** | 13650 | 14378 |
| **6/23** | 14344 | 14924 |
| **7/23** | 15047 | 15853 |
| **8/23** | 14314 | 14876 |
| **9/23** | 13899 | 14487 |
| **10/23** | 13512 | 13924 |
| **11/23** | 14458 | 15038 |
| **12/23** | 14936 | 15626 |
| **1/24** | 14468 | 14901 |
| **2/24** | 15129 | 15610 |
| **3/24** | 15576 | 15996 |
| **4/24** | 15485 | 16068 |
| **5/24** | 15566 | 16159 |
| **6/24** | 16186 | 16796 |
| **7/24** | 16085 | 16846 |
| **8/24** | 16115 | 17118 |
| **9/24** | 17070 | 18261 |
| **10/24** | 16406 | 17449 |
| **11/24** | 16012 | 16822 |
| **12/24** | 15908 | 16799 |
| **1/25** | 16292 | 17099 |
| **2/25** | 16354 | 17182 |
| **3/25** | 16655 | 17291 |
| **4/25** | 16582 | 17518 |
| **5/25** | 17527 | 18265 |
| **6/25** | 18710 | 19364 |
| **7/25** | 19166 | 19741 |
| **8/25** | 19612 | 19994 |
| **9/25** | 21077 | 21424 |
| **10/25** | 21668 | 22320 |
| **11/25** | 21267 | 21786 |
| **12/25** | 21836 | 22438 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 37.27% | 5.06% | 8.12% |
| MSCI Emerging Markets Index NTR | 33.57% | 4.20% | 8.42% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$81,605

* Total Number of Portfolio Holdings89

* Portfolio Turnover Rate 51.4%

* Total Advisory Fees Paid (amount in thousands)$737

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Common Stocks | 98.34% |
| Preferred Stocks | 1.53% |
| Investment Companies | 0.41% |
| Other Assets and Liabilities | (0.28)% |
| Total Net Assets | 100.00% |

---

#### Geographic Allocation

---

| | |
|:---|:---|
| **Top Locations** | **Percent of Net Assets** |
| Taiwan | 18.18% |
| China | 15.74% |
| India | 15.74% |
| Korea, Republic Of | 10.30% |
| Hong Kong | 7.50% |
| Brazil | 5.97% |
| Mexico | 2.90% |
| Greece | 2.79% |
| Singapore | 2.55% |
| Saudi Arabia | 2.45% |
| South Africa | 1.86% |
| Peru | 1.66% |
| Indonesia | 1.43% |
| Poland | 1.38% |
| Uruguay | 1.26% |
| United States | 1.08% |
| Canada | 1.08% |
| Vietnam | 1.04% |
| United Arab Emirates | 0.90% |
| Luxembourg | 0.90% |
| Other Locations<sup>Footnote Reference\*</sup> | 3.57% |
| Other Assets and Liabilities | (0.28)% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes locations other than the top twenty and/or Investment Companies |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC12AR1-0

# Class 1

# Government & High Quality Bond Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Government & High Quality Bond Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.**This report describes certain changes to the Fund that occurred during the reporting period.**

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $52 | 0.50% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide a high level of current income consistent with safety and liquidity. Under normal circumstances, the Fund invests at least 80% of its net assets in bonds issued by the U.S. government, its agencies, or instrumentalities or bonds that are rated AAA by S&P Global Ratings or Aaa by Moody's Investors Service, Inc. Bonds include, but are not limited to, asset-backed securities, mortgage securities such as agency and non-agency collateralized mortgage obligations ("CMO"), and other obligations that are secured by mortgages or mortgage-backed securities ("MBS"). The Fund also invests in derivatives. Fundamentals remained favorable for the MBS market for the majority of 2025 primarily driven by decreasing rate volatility and limited refinancing activity. The technical environment remained balanced in 2025 with money managers generally holding overweight MBS allocations combined with MBS additions by mortgage real estate investment trusts and government sponsored entities. Lower levels of net supply throughout the year offset weaker demand from banks and foreign buyers. On a year-over-year basis, Bloomberg US Agency Fixed Rate MBS Index ("Index") spreads moved from 43 to 22 basis points ("bps"). Current coupon spreads to U.S. Treasuries (5 to10-year) performed similarly moving from 135 bps to 110 bps year-over-year. The Fund's curve positioning, driven by overweight to higher coupon MBS and an out-of-Index allocation to the agency CMO sector, was the primary contributor to performance for the year as the yield curve steepened (spread between shorter and longer dated U.S. Treasuries increased). The Fund held an underweight in conventional lower coupons (2%-3.5%) and an out-of-Index allocation to the non-agency collateralized mortgage-backed securities sector, which detracted from performance for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i2169a9cbb651238076910d94.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 1 Shares at net asset value $11,331** | **Bloomberg US Aggregate Index $12,199** | **Bloomberg US Agency Fixed Rate MBS Index $11,709** |
| **12/15** | 10000 | 10000 | 10000 |
| **1/16** | 10167 | 10138 | 10130 |
| **2/16** | 10207 | 10210 | 10168 |
| **3/16** | 10226 | 10303 | 10198 |
| **4/16** | 10256 | 10343 | 10215 |
| **5/16** | 10236 | 10345 | 10228 |
| **6/16** | 10344 | 10531 | 10311 |
| **7/16** | 10354 | 10598 | 10332 |
| **8/16** | 10343 | 10586 | 10344 |
| **9/16** | 10384 | 10580 | 10373 |
| **10/16** | 10374 | 10499 | 10345 |
| **11/16** | 10190 | 10250 | 10168 |
| **12/16** | 10180 | 10265 | 10167 |
| **1/17** | 10201 | 10285 | 10164 |
| **2/17** | 10231 | 10354 | 10212 |
| **3/17** | 10282 | 10428 | 10282 |
| **4/17** | 10343 | 10509 | 10346 |
| **5/17** | 10303 | 10498 | 10305 |
| **6/17** | 10343 | 10543 | 10351 |
| **7/17** | 10414 | 10638 | 10427 |
| **8/17** | 10382 | 10587 | 10403 |
| **9/17** | 10371 | 10593 | 10400 |
| **10/17** | 10350 | 10580 | 10385 |
| **12/17** | 10371 | 10628 | 10419 |
| **1/18** | 10265 | 10506 | 10297 |
| **2/18** | 10212 | 10406 | 10229 |
| **3/18** | 10254 | 10473 | 10295 |
| **4/18** | 10222 | 10395 | 10243 |
| **5/18** | 10286 | 10469 | 10315 |
| **6/18** | 10276 | 10456 | 10320 |
| **7/18** | 10265 | 10459 | 10309 |
| **8/18** | 10329 | 10526 | 10371 |
| **9/18** | 10256 | 10458 | 10308 |
| **10/18** | 10201 | 10376 | 10243 |
| **11/18** | 10289 | 10438 | 10335 |
| **12/18** | 10466 | 10629 | 10522 |
| **1/19** | 10543 | 10742 | 10606 |
| **2/19** | 10532 | 10736 | 10596 |
| **3/19** | 10687 | 10942 | 10750 |
| **4/19** | 10687 | 10945 | 10744 |
| **5/19** | 10831 | 11139 | 10883 |
| **6/19** | 10930 | 11279 | 10961 |
| **7/19** | 10963 | 11304 | 11005 |
| **8/19** | 11085 | 11597 | 11104 |
| **9/19** | 11073 | 11535 | 11112 |
| **10/19** | 11119 | 11570 | 11151 |
| **11/19** | 11130 | 11564 | 11160 |
| **12/19** | 11141 | 11556 | 11191 |
| **1/20** | 11232 | 11778 | 11269 |
| **2/20** | 11346 | 11990 | 11386 |
| **3/20** | 11232 | 11920 | 11506 |
| **4/20** | 11368 | 12132 | 11579 |
| **5/20** | 11414 | 12188 | 11593 |
| **6/20** | 11414 | 12265 | 11583 |
| **7/20** | 11437 | 12448 | 11603 |
| **8/20** | 11437 | 12348 | 11608 |
| **9/20** | 11449 | 12341 | 11596 |
| **10/20** | 11461 | 12286 | 11591 |
| **11/20** | 11426 | 12406 | 11599 |
| **12/20** | 11461 | 12423 | 11624 |
| **1/21** | 11472 | 12334 | 11633 |
| **2/21** | 11437 | 12156 | 11555 |
| **3/21** | 11391 | 12005 | 11496 |
| **4/21** | 11437 | 12099 | 11560 |
| **5/21** | 11402 | 12139 | 11539 |
| **6/21** | 11402 | 12224 | 11534 |
| **7/21** | 11461 | 12361 | 11607 |
| **8/21** | 11437 | 12337 | 11588 |
| **9/21** | 11405 | 12230 | 11546 |
| **10/21** | 11357 | 12227 | 11524 |
| **11/21** | 11333 | 12263 | 11513 |
| **12/21** | 11309 | 12232 | 11503 |
| **1/22** | 11142 | 11968 | 11332 |
| **2/22** | 11071 | 11835 | 11223 |
| **3/22** | 10760 | 11506 | 10931 |
| **4/22** | 10414 | 11069 | 10547 |
| **5/22** | 10522 | 11141 | 10664 |
| **6/22** | 10665 | 11234 | 10830 |
| **7/22** | 10307 | 10917 | 10460 |
| **8/22** | 9635 | 10310 | 9790 |
| **9/22** | 10047 | 10689 | 10189 |
| **12/22** | 9974 | 10641 | 10144 |
| **1/23** | 10313 | 10968 | 10478 |
| **2/23** | 10035 | 10684 | 10202 |
| **3/23** | 10252 | 10956 | 10400 |
| **4/23** | 10301 | 11022 | 10454 |
| **5/23** | 10216 | 10902 | 10378 |
| **6/23** | 10156 | 10863 | 10333 |
| **7/23** | 10143 | 10856 | 10326 |
| **8/23** | 10035 | 10786 | 10241 |
| **9/23** | 9730 | 10512 | 9914 |
| **10/23** | 9544 | 10346 | 9710 |
| **11/23** | 10028 | 10815 | 10216 |
| **12/23** | 10437 | 11229 | 10656 |
| **1/24** | 10387 | 11198 | 10607 |
| **2/24** | 10214 | 11040 | 10434 |
| **3/24** | 10313 | 11142 | 10545 |
| **4/24** | 10003 | 10860 | 10226 |
| **5/24** | 10201 | 11044 | 10430 |
| **6/24** | 10325 | 11149 | 10552 |
| **7/24** | 10598 | 11409 | 10830 |
| **8/24** | 10771 | 11573 | 11005 |
| **9/24** | 10897 | 11728 | 11135 |
| **10/24** | 10552 | 11437 | 10820 |
| **11/24** | 10693 | 11558 | 10965 |
| **12/24** | 10501 | 11369 | 10784 |
| **1/25** | 10552 | 11430 | 10839 |
| **2/25** | 10821 | 11681 | 11115 |
| **3/25** | 10821 | 11685 | 11113 |
| **4/25** | 10872 | 11731 | 11145 |
| **5/25** | 10757 | 11647 | 11044 |
| **6/25** | 10948 | 11826 | 11240 |
| **7/25** | 10897 | 11795 | 11194 |
| **8/25** | 11076 | 11936 | 11375 |
| **9/25** | 11199 | 12067 | 11513 |
| **10/25** | 11279 | 12142 | 11612 |
| **11/25** | 11345 | 12217 | 11684 |
| **12/25** | 11331 | 12199 | 11709 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 7.91% | -0.23% | 1.26% |
| Bloomberg US Aggregate Index | 7.30% | -0.36% | 2.01% |
| Bloomberg US Agency Fixed Rate MBS Index | 8.58% | 0.15% | 1.59% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Bloomberg US Aggregate Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Bloomberg US Agency Fixed Rate MBS Index is included as an additional index for the Fund as it shows how the Fund's performance compares with the returns of an index of funds with similar investment objectives. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$107,117

* Total Number of Portfolio Holdings264

* Portfolio Turnover Rate 240.0%

* Total Advisory Fees Paid (amount in thousands)$525

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| U.S. Government & Government Agency Obligations | 81.15% |
| Bonds | 23.61% |
| Investment Companies | 0.84% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | (5.60)% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Mortgage Securities | 95.48% |
| Asset Backed Securities | 6.32% |
| Government | 2.96% |
| Money Market Funds | 0.84% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | (5.60)% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

## **Material Fund Changes** 
This is a summary of certain changes to the Fund since December 31, 2024. For more complete information, you may review the Fund's most recent prospectus, which we expect to be effective by May 1 or upon request at www.PrincipalAM.com/pvcprospectuses.

Effective January 1, 2025, the Fund's management fees were changed. The management fee was reduced from 0.50% to 0.48% on the first $100 million of average daily net assets and from 0.48% to 0.47% on the next $100 million of net assets. The remaining breakpoints in the fee schedule are unchanged.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC11AR1-0

# Class 1

# LargeCap Growth Account I
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about LargeCap Growth Account I (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.**This report describes certain changes to the Fund that occurred during the reporting period.**

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $71 | 0.67% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks long-term growth of capital. Under normal circumstances, the Fund invests at least 80% of its net assets in growth equity securities of companies with large market capitalizations. The Fund may invest up to 30% of the Fund's assets using an index sampling strategy designed to match the performance of the Russell 1000<sup>®</sup> Growth Index ("Index"). During the fiscal year, T. Rowe Price Associates, Inc ("T. Rowe") investment performance benefited from an underweight to the consumer staples sector, as well as strong stock selection in the information technology and communication services sectors. Brown Advisory, LLC's ("Brown") investment performance was helped by an underweight to the consumer discretionary sector, an overweight to the healthcare sector, and strong stock selection in the consumer discretionary sector. During the fiscal year, T. Rowe and Brown underperformed the Index. T. Rowe underperformed the Index due to poor stock selection in the healthcare and consumer discretionary sectors, as well as an overweight to the financials sector. Brown underperformed the Index due to poor stock selection in the information technology and communication services sectors, as well as an underweight to the information technology sector.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](ie6ad2aec171eb6b3c7791855.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 1 Shares at net asset value $40,471** | **Russell 1000 Index $39,030** | **Russell 1000 Growth Index $52,906** |
| **12/15** | 10000 | 10000 | 10000 |
| **1/16** | 9206 | 9462 | 9442 |
| **2/16** | 9126 | 9459 | 9438 |
| **3/16** | 9692 | 10117 | 10074 |
| **4/16** | 9708 | 10172 | 9982 |
| **5/16** | 9909 | 10351 | 10176 |
| **6/16** | 9689 | 10374 | 10136 |
| **7/16** | 10209 | 10769 | 10615 |
| **8/16** | 10147 | 10783 | 10562 |
| **9/16** | 10229 | 10792 | 10600 |
| **10/16** | 10085 | 10582 | 10351 |
| **11/16** | 10118 | 10999 | 10577 |
| **12/16** | 10126 | 11205 | 10708 |
| **1/17** | 10601 | 11431 | 11068 |
| **2/17** | 11001 | 11873 | 11528 |
| **3/17** | 11516 | 12006 | 11928 |
| **4/17** | 11883 | 12160 | 12238 |
| **5/17** | 11850 | 12244 | 12206 |
| **6/17** | 12213 | 12487 | 12531 |
| **7/17** | 12476 | 12526 | 12760 |
| **8/17** | 12572 | 12793 | 12926 |
| **9/17** | 13153 | 13086 | 13427 |
| **10/17** | 13588 | 13485 | 13835 |
| **12/17** | 13540 | 13636 | 13943 |
| **1/18** | 14825 | 14384 | 14930 |
| **2/18** | 14547 | 13856 | 14539 |
| **3/18** | 14248 | 13541 | 14140 |
| **4/18** | 14408 | 13587 | 14189 |
| **5/18** | 14964 | 13934 | 14811 |
| **6/18** | 15164 | 14024 | 14954 |
| **7/18** | 15520 | 14508 | 15393 |
| **8/18** | 16215 | 15008 | 16235 |
| **9/18** | 16306 | 15065 | 16325 |
| **10/18** | 14936 | 13999 | 14865 |
| **11/18** | 15290 | 14284 | 15023 |
| **12/18** | 14027 | 12983 | 13732 |
| **1/19** | 15407 | 14071 | 14966 |
| **2/19** | 16064 | 14548 | 15501 |
| **3/19** | 16437 | 14801 | 15943 |
| **4/19** | 17005 | 15399 | 16663 |
| **5/19** | 16036 | 14417 | 15610 |
| **6/19** | 17154 | 15430 | 16682 |
| **7/19** | 17453 | 15669 | 17059 |
| **8/19** | 17392 | 15382 | 16928 |
| **9/19** | 17276 | 15649 | 16930 |
| **10/19** | 17628 | 15980 | 17408 |
| **11/19** | 18473 | 16584 | 18180 |
| **12/19** | 18925 | 17063 | 18729 |
| **1/20** | 19317 | 17082 | 19147 |
| **2/20** | 18201 | 15686 | 17843 |
| **3/20** | 16356 | 13613 | 16088 |
| **4/20** | 18815 | 15412 | 18468 |
| **5/20** | 20202 | 16225 | 19708 |
| **6/20** | 20921 | 16584 | 20567 |
| **7/20** | 22490 | 17555 | 22149 |
| **8/20** | 24320 | 18843 | 24434 |
| **9/20** | 23340 | 18155 | 23285 |
| **10/20** | 22648 | 17717 | 22494 |
| **11/20** | 24834 | 19803 | 24797 |
| **12/20** | 25776 | 20640 | 25938 |
| **1/21** | 25393 | 20470 | 25746 |
| **2/21** | 25909 | 21064 | 25740 |
| **3/21** | 26042 | 21861 | 26182 |
| **4/21** | 27972 | 23037 | 27963 |
| **5/21** | 27701 | 23147 | 27577 |
| **6/21** | 29504 | 23727 | 29307 |
| **7/21** | 30515 | 24220 | 30273 |
| **8/21** | 31265 | 24921 | 31404 |
| **9/21** | 29509 | 23776 | 29646 |
| **10/21** | 31527 | 25426 | 32213 |
| **11/21** | 30970 | 25085 | 32410 |
| **12/21** | 31419 | 26101 | 33096 |
| **1/22** | 27923 | 24629 | 30255 |
| **2/22** | 26642 | 23953 | 28970 |
| **3/22** | 27079 | 24762 | 30103 |
| **4/22** | 23570 | 22554 | 26468 |
| **5/22** | 22846 | 22520 | 25853 |
| **6/22** | 23672 | 22556 | 26662 |
| **7/22** | 22229 | 21690 | 25420 |
| **8/22** | 21283 | 21261 | 24290 |
| **9/22** | 22262 | 22412 | 25397 |
| **12/22** | 20688 | 21108 | 23453 |
| **1/23** | 22475 | 22524 | 25407 |
| **2/23** | 21852 | 21988 | 25106 |
| **3/23** | 23344 | 22683 | 26822 |
| **4/23** | 23673 | 22964 | 27086 |
| **5/23** | 24528 | 23071 | 28321 |
| **6/23** | 26322 | 24629 | 30258 |
| **7/23** | 27082 | 25476 | 31277 |
| **8/23** | 26897 | 25031 | 30996 |
| **9/23** | 25392 | 23854 | 29310 |
| **10/23** | 24896 | 23278 | 28893 |
| **11/23** | 27497 | 25452 | 32043 |
| **12/23** | 29034 | 26708 | 33462 |
| **1/24** | 29896 | 27081 | 34296 |
| **2/24** | 31598 | 28543 | 36636 |
| **3/24** | 32209 | 29458 | 37281 |
| **4/24** | 30643 | 28205 | 35700 |
| **5/24** | 31828 | 29533 | 37837 |
| **6/24** | 33760 | 30510 | 40388 |
| **7/24** | 33408 | 30954 | 39701 |
| **8/24** | 34392 | 31688 | 40528 |
| **9/24** | 34914 | 32366 | 41677 |
| **10/24** | 34710 | 32139 | 41539 |
| **11/24** | 36981 | 34209 | 44233 |
| **12/24** | 36332 | 33255 | 44623 |
| **1/25** | 37350 | 34313 | 45506 |
| **2/25** | 36204 | 33713 | 43871 |
| **3/25** | 33352 | 31762 | 40175 |
| **4/25** | 34054 | 31573 | 40887 |
| **5/25** | 36860 | 33589 | 44505 |
| **6/25** | 38987 | 35290 | 47342 |
| **7/25** | 39863 | 36074 | 49129 |
| **8/25** | 39840 | 36833 | 49679 |
| **9/25** | 40719 | 38110 | 52318 |
| **10/25** | 41765 | 38932 | 54218 |
| **11/25** | 40967 | 39027 | 53236 |
| **12/25** | 40471 | 39030 | 52906 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 11.39% | 9.44% | 15.00% |
| Russell 1000 Index | 17.37% | 13.59% | 14.59% |
| Russell 1000 Growth Index | 18.56% | 15.32% | 18.13% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Russell 1000 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Russell 1000 Growth Index is included as an additional index for the Fund as it shows how the Fund's performance compares with the returns of an index of funds with similar investment objectives. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$617,414

* Total Number of Portfolio Holdings415

* Portfolio Turnover Rate 50.7%

* Total Advisory Fees Paid (amount in thousands)$4,061

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Common Stocks | 96.85% |
| Investment Companies | 3.02% |
| Convertible Preferred Stocks | 0.13% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | 0.00% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Technology | 43.27% |
| Communications | 22.19% |
| Consumer, Non-cyclical | 12.97% |
| Financial | 7.23% |
| Industrial | 7.06% |
| Consumer, Cyclical | 4.16% |
| Money Market Funds | 2.78% |
| Exchange-Traded Funds | 0.24% |
| Basic Materials | 0.04% |
| Energy | 0.03% |
| Utilities | 0.03% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | 0.00% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

## **Material Fund Changes** 
This is a summary of certain changes to the Fund since December 31, 2024. For more complete information, you may review the Fund's most recent prospectus, which we expect to be effective by May 1 or upon request at www.PrincipalAM.com/pvcprospectuses.

Effective April 30, 2025, the Fund's Class 1 contractual expense limit of 0.69% expired.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC15AR1-0

# Class 1

# LargeCap S&P 500 Index Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about LargeCap S&P 500 Index Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.**This report describes certain changes to the Fund that occurred during the reporting period.**

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $22 | 0.20% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks long-term growth of capital. Under normal circumstances, the Fund invests at least 80% of its net assets in equity securities of companies that compose the Standard & Poor's<sup>®</sup> ("S&P") 500 Index ("Index"). The Index is designed to represent U.S. equities with risk and return characteristics of the large capitalization universe. The Fund employs a passive investment approach designed to attempt to track the performance of the Index. The Fund uses derivative strategies. During the 12 months ending in December 2025, the Fund's investment performance was in line with the Index. The Fund uses an indexing strategy and does not attempt to manage market volatility, use defensive strategies or reduce the effect of any long-term periods of negative stock market performance. All eleven economic sectors in the Index posted positive returns for the year with the communication services and information technology sectors providing the best returns. The real estate and consumer staples sectors recorded the worst returns. Palantir Technologies, GE Aerospace, and Advanced Micro Devices contributed to Fund performance. Fiserv, UnitedHealth Group, and ServiceNow detracted from Fund performance for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](id0daffbf42aac096a01bfba3.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 1 Shares at net asset value $38,793** | **S&P 500 Index $39,827** |
| **12/15** | 10000 | 10000 |
| **1/16** | 9500 | 9504 |
| **2/16** | 9486 | 9491 |
| **3/16** | 10125 | 10135 |
| **4/16** | 10167 | 10174 |
| **5/16** | 10347 | 10357 |
| **6/16** | 10368 | 10384 |
| **7/16** | 10749 | 10766 |
| **8/16** | 10761 | 10782 |
| **9/16** | 10761 | 10784 |
| **10/16** | 10559 | 10587 |
| **11/16** | 10949 | 10979 |
| **12/16** | 11159 | 11196 |
| **1/17** | 11369 | 11408 |
| **2/17** | 11817 | 11861 |
| **3/17** | 11947 | 11997 |
| **4/17** | 12113 | 12166 |
| **5/17** | 12185 | 12242 |
| **6/17** | 12431 | 12494 |
| **7/17** | 12468 | 12532 |
| **8/17** | 12724 | 12790 |
| **9/17** | 13016 | 13089 |
| **10/17** | 13414 | 13490 |
| **12/17** | 13557 | 13640 |
| **1/18** | 14337 | 14421 |
| **2/18** | 13804 | 13890 |
| **3/18** | 13452 | 13537 |
| **4/18** | 13497 | 13589 |
| **5/18** | 13820 | 13916 |
| **6/18** | 13902 | 14002 |
| **7/18** | 14413 | 14523 |
| **8/18** | 14885 | 14996 |
| **9/18** | 14965 | 15081 |
| **10/18** | 13939 | 14050 |
| **11/18** | 14223 | 14337 |
| **12/18** | 12936 | 13042 |
| **1/19** | 13962 | 14087 |
| **2/19** | 14412 | 14540 |
| **3/19** | 14688 | 14822 |
| **4/19** | 15280 | 15422 |
| **5/19** | 14302 | 14442 |
| **6/19** | 15312 | 15460 |
| **7/19** | 15525 | 15682 |
| **8/19** | 15272 | 15434 |
| **9/19** | 15557 | 15723 |
| **10/19** | 15893 | 16063 |
| **11/19** | 16464 | 16646 |
| **12/19** | 16960 | 17149 |
| **1/20** | 16943 | 17142 |
| **2/20** | 15549 | 15731 |
| **3/20** | 13625 | 13788 |
| **4/20** | 15364 | 15555 |
| **5/20** | 16095 | 16296 |
| **6/20** | 16414 | 16620 |
| **7/20** | 17329 | 17558 |
| **8/20** | 18573 | 18820 |
| **9/20** | 17863 | 18105 |
| **10/20** | 17388 | 17623 |
| **11/20** | 19287 | 19552 |
| **12/20** | 20026 | 20304 |
| **1/21** | 19816 | 20099 |
| **2/21** | 20364 | 20653 |
| **3/21** | 21249 | 21558 |
| **4/21** | 22372 | 22708 |
| **5/21** | 22527 | 22867 |
| **6/21** | 23047 | 23401 |
| **7/21** | 23586 | 23956 |
| **8/21** | 24298 | 24685 |
| **9/21** | 23163 | 23537 |
| **10/21** | 24784 | 25186 |
| **11/21** | 24602 | 25011 |
| **12/21** | 25700 | 26132 |
| **1/22** | 24361 | 24780 |
| **2/22** | 23626 | 24038 |
| **3/22** | 24502 | 24931 |
| **4/22** | 22368 | 22757 |
| **5/22** | 22398 | 22798 |
| **6/22** | 22428 | 22845 |
| **7/22** | 21512 | 21913 |
| **8/22** | 21104 | 21506 |
| **9/22** | 22277 | 22708 |
| **12/22** | 20989 | 21399 |
| **1/23** | 22300 | 22744 |
| **2/23** | 21760 | 22189 |
| **3/23** | 22554 | 23004 |
| **4/23** | 22899 | 23363 |
| **5/23** | 22991 | 23464 |
| **6/23** | 24510 | 25015 |
| **7/23** | 25292 | 25818 |
| **8/23** | 24878 | 25407 |
| **9/23** | 23690 | 24196 |
| **10/23** | 23191 | 23687 |
| **11/23** | 25296 | 25850 |
| **12/23** | 26440 | 27025 |
| **1/24** | 26878 | 27479 |
| **2/24** | 28314 | 28946 |
| **3/24** | 29214 | 29878 |
| **4/24** | 28010 | 28657 |
| **5/24** | 29397 | 30078 |
| **6/24** | 30443 | 31157 |
| **7/24** | 30808 | 31537 |
| **8/24** | 31551 | 32302 |
| **9/24** | 32219 | 32992 |
| **10/24** | 31916 | 32692 |
| **11/24** | 33783 | 34611 |
| **12/24** | 32981 | 33786 |
| **1/25** | 33888 | 34727 |
| **2/25** | 33441 | 34274 |
| **3/25** | 31548 | 32343 |
| **4/25** | 31325 | 32124 |
| **5/25** | 33283 | 34146 |
| **6/25** | 34979 | 35882 |
| **7/25** | 35755 | 36687 |
| **8/25** | 36478 | 37431 |
| **9/25** | 37803 | 38797 |
| **10/25** | 38681 | 39706 |
| **11/25** | 38777 | 39803 |
| **12/25** | 38793 | 39827 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 17.62% | 14.14% | 14.52% |
| S&P 500 Index | 17.88% | 14.42% | 14.82% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$2,390,154

* Total Number of Portfolio Holdings507

* Portfolio Turnover Rate 3.4%

* Total Advisory Fees Paid (amount in thousands)$4,743

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Common Stocks | 98.84% |
| Investment Companies | 1.28% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | (0.12)% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Technology | 32.30% |
| Communications | 16.78% |
| Financial | 14.05% |
| Consumer, Non-cyclical | 13.78% |
| Consumer, Cyclical | 8.07% |
| Industrial | 7.46% |
| Energy | 2.83% |
| Utilities | 2.22% |
| Basic Materials | 1.35% |
| Exchange-Traded Funds | 0.89% |
| Money Market Funds | 0.39% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | (0.12)% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

## **Material Fund Changes** 
This is a summary of certain changes to the Fund since December 31, 2024. For more complete information, you may review the Fund's most recent prospectus, which we expect to be effective by May 1 or upon request at www.PrincipalAM.com/pvcprospectuses.

Effective November 19, 2025, the Fund changed from Diversified to Non-Diversified and updated its Investment Strategies and Principal Risks.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC16AR1-0

# Class 2

# LargeCap S&P 500 Index Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about LargeCap S&P 500 Index Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.**This report describes certain changes to the Fund that occurred during the reporting period.**

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $49 | 0.45% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks long-term growth of capital. Under normal circumstances, the Fund invests at least 80% of its net assets in equity securities of companies that compose the Standard & Poor's<sup>®</sup> ("S&P") 500 Index ("Index"). The Index is designed to represent U.S. equities with risk and return characteristics of the large capitalization universe. The Fund employs a passive investment approach designed to attempt to track the performance of the Index. The Fund uses derivative strategies. During the 12 months ending in December 2025, the Fund's investment performance was in line with the Index. The Fund uses an indexing strategy and does not attempt to manage market volatility, use defensive strategies or reduce the effect of any long-term periods of negative stock market performance. All eleven economic sectors in the Index posted positive returns for the year with the communication services and information technology sectors providing the best returns. The real estate and consumer staples sectors recorded the worst returns. Palantir Technologies, GE Aerospace, and Advanced Micro Devices contributed to Fund performance. Fiserv, UnitedHealth Group, and ServiceNow detracted from Fund performance for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i067eb71a8a781cb7b390b5d3.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 2 Shares at net asset value $37,810** | **S&P 500 Index $39,827** |
| **12/15** | 10000 | 10000 |
| **1/16** | 9500 | 9504 |
| **2/16** | 9479 | 9491 |
| **3/16** | 10118 | 10135 |
| **4/16** | 10153 | 10174 |
| **5/16** | 10327 | 10357 |
| **6/16** | 10354 | 10384 |
| **7/16** | 10730 | 10766 |
| **8/16** | 10739 | 10782 |
| **9/16** | 10732 | 10784 |
| **10/16** | 10537 | 10587 |
| **11/16** | 10920 | 10979 |
| **12/16** | 11130 | 11196 |
| **1/17** | 11333 | 11408 |
| **2/17** | 11781 | 11861 |
| **3/17** | 11905 | 11997 |
| **4/17** | 12064 | 12166 |
| **5/17** | 12136 | 12242 |
| **6/17** | 12382 | 12494 |
| **7/17** | 12415 | 12532 |
| **8/17** | 12663 | 12790 |
| **9/17** | 12956 | 13089 |
| **10/17** | 13347 | 13490 |
| **12/17** | 13490 | 13640 |
| **1/18** | 14256 | 14421 |
| **2/18** | 13723 | 13890 |
| **3/18** | 13369 | 13537 |
| **4/18** | 13414 | 13589 |
| **5/18** | 13730 | 13916 |
| **6/18** | 13813 | 14002 |
| **7/18** | 14316 | 14523 |
| **8/18** | 14775 | 14996 |
| **9/18** | 14851 | 15081 |
| **10/18** | 13832 | 14050 |
| **11/18** | 14108 | 14337 |
| **12/18** | 12828 | 13042 |
| **1/19** | 13847 | 14087 |
| **2/19** | 14290 | 14540 |
| **3/19** | 14566 | 14822 |
| **4/19** | 15143 | 15422 |
| **5/19** | 14179 | 14442 |
| **6/19** | 15166 | 15460 |
| **7/19** | 15380 | 15682 |
| **8/19** | 15127 | 15434 |
| **9/19** | 15404 | 15723 |
| **10/19** | 15731 | 16063 |
| **11/19** | 16294 | 16646 |
| **12/19** | 16782 | 17149 |
| **1/20** | 16765 | 17142 |
| **2/20** | 15378 | 15731 |
| **3/20** | 13471 | 13788 |
| **4/20** | 15193 | 15555 |
| **5/20** | 15916 | 16296 |
| **6/20** | 16219 | 16620 |
| **7/20** | 17126 | 17558 |
| **8/20** | 18353 | 18820 |
| **9/20** | 17646 | 18105 |
| **10/20** | 17171 | 17623 |
| **11/20** | 19043 | 19552 |
| **12/20** | 19764 | 20304 |
| **1/21** | 19554 | 20099 |
| **2/21** | 20092 | 20653 |
| **3/21** | 20960 | 21558 |
| **4/21** | 22064 | 22708 |
| **5/21** | 22210 | 22867 |
| **6/21** | 22721 | 23401 |
| **7/21** | 23251 | 23956 |
| **8/21** | 23945 | 24685 |
| **9/21** | 22819 | 23537 |
| **10/21** | 24410 | 25186 |
| **11/21** | 24229 | 25011 |
| **12/21** | 25307 | 26132 |
| **1/22** | 23987 | 24780 |
| **2/22** | 23262 | 24038 |
| **3/22** | 24108 | 24931 |
| **4/22** | 22004 | 22757 |
| **5/22** | 22024 | 22798 |
| **6/22** | 22054 | 22845 |
| **7/22** | 21148 | 21913 |
| **8/22** | 20733 | 21506 |
| **9/22** | 21885 | 22708 |
| **12/22** | 20618 | 21399 |
| **1/23** | 21896 | 22744 |
| **2/23** | 21355 | 22189 |
| **3/23** | 22138 | 23004 |
| **4/23** | 22472 | 23363 |
| **5/23** | 22564 | 23464 |
| **6/23** | 24037 | 25015 |
| **7/23** | 24797 | 25818 |
| **8/23** | 24394 | 25407 |
| **9/23** | 23225 | 24196 |
| **10/23** | 22727 | 23687 |
| **11/23** | 24794 | 25850 |
| **12/23** | 25912 | 27025 |
| **1/24** | 26326 | 27479 |
| **2/24** | 27724 | 28946 |
| **3/24** | 28600 | 29878 |
| **4/24** | 27420 | 28657 |
| **5/24** | 28770 | 30078 |
| **6/24** | 29791 | 31157 |
| **7/24** | 30144 | 31537 |
| **8/24** | 30862 | 32302 |
| **9/24** | 31509 | 32992 |
| **10/24** | 31207 | 32692 |
| **11/24** | 33032 | 34611 |
| **12/24** | 32231 | 33786 |
| **1/25** | 33111 | 34727 |
| **2/25** | 32665 | 34274 |
| **3/25** | 30813 | 32343 |
| **4/25** | 30590 | 32124 |
| **5/25** | 32494 | 34146 |
| **6/25** | 34136 | 35882 |
| **7/25** | 34898 | 36687 |
| **8/25** | 35594 | 37431 |
| **9/25** | 36866 | 38797 |
| **10/25** | 37730 | 39706 |
| **11/25** | 37810 | 39803 |
| **12/25** | 37810 | 39827 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 2 Shares | 17.31% | 13.85% | 14.22% |
| S&P 500 Index | 17.88% | 14.42% | 14.82% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$2,390,154

* Total Number of Portfolio Holdings507

* Portfolio Turnover Rate 3.4%

* Total Advisory Fees Paid (amount in thousands)$4,743

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Common Stocks | 98.84% |
| Investment Companies | 1.28% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | (0.12)% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Technology | 32.30% |
| Communications | 16.78% |
| Financial | 14.05% |
| Consumer, Non-cyclical | 13.78% |
| Consumer, Cyclical | 8.07% |
| Industrial | 7.46% |
| Energy | 2.83% |
| Utilities | 2.22% |
| Basic Materials | 1.35% |
| Exchange-Traded Funds | 0.89% |
| Money Market Funds | 0.39% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | (0.12)% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

## **Material Fund Changes** 
This is a summary of certain changes to the Fund since December 31, 2024. For more complete information, you may review the Fund's most recent prospectus, which we expect to be effective by May 1 or upon request at www.PrincipalAM.com/pvcprospectuses.

Effective November 19, 2025, the Fund changed from Diversified to Non-Diversified and updated its Investment Strategies and Principal Risks.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC16AR2-0

# Class 1

# LargeCap S&P 500 Managed Volatility Index Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about LargeCap S&P 500 Managed Volatility Index Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.**This report describes certain changes to the Fund that occurred during the reporting period.**

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $40 | 0.37% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks long-term growth of capital with an emphasis on managing volatility. Under normal circumstances, the Fund invests at least 80% of its net assets in equity securities of companies that compose the Standard & Poor's<sup>®</sup> ("S&P") 500 Index ("Index"). The Index is designed to represent U.S. equities with risk and return characteristics of the large cap universe, which includes growth and value stocks. In part, the Fund employs a passive investment approach designed to attempt to track the performance of the Index. The Fund also uses derivative strategies. The Fund also employs an active volatility management strategy that seeks to produce gains regardless of the directional movement of the Index and mitigate volatility. During the 12 months ending in December 2025, the Fund's investment performance was in line with the Index. The Fund uses an indexing strategy and does not attempt to use defensive strategies or reduce the effect of any long-term periods of negative stock market performance. All eleven economic sectors in the Index posted positive returns for the year with the communication services and information technology sectors providing the best returns. The real estate and consumer staples sectors recorded the worst returns. Palantir Technologies, GE Aerospace, and Advanced Micro Devices contributed to Fund performance. Fiserv, UnitedHealth Group, and ServiceNow detracted from Fund performance for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](id9421071c52a6884e6af9160.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 1 Shares at net asset value $35,237** | **S&P 500 Index $39,827** |
| **12/15** | 10000 | 10000 |
| **1/16** | 9539 | 9504 |
| **2/16** | 9512 | 9491 |
| **3/16** | 10106 | 10135 |
| **4/16** | 10133 | 10174 |
| **5/16** | 10302 | 10357 |
| **6/16** | 10311 | 10384 |
| **7/16** | 10674 | 10766 |
| **8/16** | 10679 | 10782 |
| **9/16** | 10670 | 10784 |
| **10/16** | 10470 | 10587 |
| **11/16** | 10824 | 10979 |
| **12/16** | 11033 | 11196 |
| **1/17** | 11215 | 11408 |
| **2/17** | 11642 | 11861 |
| **3/17** | 11733 | 11997 |
| **4/17** | 11887 | 12166 |
| **5/17** | 11941 | 12242 |
| **6/17** | 12159 | 12494 |
| **7/17** | 12198 | 12532 |
| **8/17** | 12434 | 12790 |
| **9/17** | 12709 | 13089 |
| **10/17** | 13063 | 13490 |
| **12/17** | 13191 | 13640 |
| **1/18** | 13899 | 14421 |
| **2/18** | 13476 | 13890 |
| **3/18** | 13152 | 13537 |
| **4/18** | 13171 | 13589 |
| **5/18** | 13456 | 13916 |
| **6/18** | 13525 | 14002 |
| **7/18** | 13977 | 14523 |
| **8/18** | 14400 | 14996 |
| **9/18** | 14463 | 15081 |
| **10/18** | 13606 | 14050 |
| **11/18** | 13855 | 14337 |
| **12/18** | 12699 | 13042 |
| **1/19** | 13646 | 14087 |
| **2/19** | 14054 | 14540 |
| **3/19** | 14304 | 14822 |
| **4/19** | 14842 | 15422 |
| **5/19** | 13955 | 14442 |
| **6/19** | 14862 | 15460 |
| **7/19** | 15061 | 15682 |
| **8/19** | 14842 | 15434 |
| **9/19** | 15110 | 15723 |
| **10/19** | 15393 | 16063 |
| **11/19** | 15925 | 16646 |
| **12/19** | 16371 | 17149 |
| **1/20** | 16382 | 17142 |
| **2/20** | 15121 | 15731 |
| **3/20** | 13338 | 13788 |
| **4/20** | 14958 | 15555 |
| **5/20** | 15610 | 16296 |
| **6/20** | 15893 | 16620 |
| **7/20** | 16719 | 17558 |
| **8/20** | 17839 | 18820 |
| **9/20** | 17223 | 18105 |
| **10/20** | 16760 | 17623 |
| **11/20** | 18444 | 19552 |
| **12/20** | 19099 | 20304 |
| **1/21** | 18907 | 20099 |
| **2/21** | 19371 | 20653 |
| **3/21** | 20139 | 21558 |
| **4/21** | 21156 | 22708 |
| **5/21** | 21269 | 22867 |
| **6/21** | 21721 | 23401 |
| **7/21** | 22207 | 23956 |
| **8/21** | 22806 | 24685 |
| **9/21** | 21779 | 23537 |
| **10/21** | 23191 | 25186 |
| **11/21** | 23051 | 25011 |
| **12/21** | 23979 | 26132 |
| **1/22** | 22822 | 24780 |
| **2/22** | 22186 | 24038 |
| **3/22** | 22898 | 24931 |
| **4/22** | 21004 | 22757 |
| **5/22** | 21042 | 22798 |
| **6/22** | 21106 | 22845 |
| **7/22** | 20330 | 21913 |
| **8/22** | 20043 | 21506 |
| **9/22** | 21047 | 22708 |
| **12/22** | 19914 | 21399 |
| **1/23** | 21018 | 22744 |
| **2/23** | 20530 | 22189 |
| **3/23** | 21190 | 23004 |
| **4/23** | 21463 | 23363 |
| **5/23** | 21520 | 23464 |
| **6/23** | 22797 | 25015 |
| **7/23** | 23457 | 25818 |
| **8/23** | 23328 | 25407 |
| **9/23** | 22295 | 24196 |
| **10/23** | 21785 | 23687 |
| **11/23** | 23623 | 25850 |
| **12/23** | 24626 | 27025 |
| **1/24** | 24997 | 27479 |
| **2/24** | 26232 | 28946 |
| **3/24** | 27019 | 29878 |
| **4/24** | 25969 | 28657 |
| **5/24** | 27158 | 30078 |
| **6/24** | 28069 | 31157 |
| **7/24** | 28378 | 31537 |
| **8/24** | 28949 | 32302 |
| **9/24** | 29490 | 32992 |
| **10/24** | 29245 | 32692 |
| **11/24** | 30781 | 34611 |
| **12/24** | 30083 | 33786 |
| **1/25** | 30851 | 34727 |
| **2/25** | 30449 | 34274 |
| **3/25** | 29053 | 32343 |
| **4/25** | 28984 | 32124 |
| **5/25** | 30676 | 34146 |
| **6/25** | 32107 | 35882 |
| **7/25** | 32770 | 36687 |
| **8/25** | 33363 | 37431 |
| **9/25** | 34489 | 38797 |
| **10/25** | 35260 | 39706 |
| **11/25** | 35305 | 39803 |
| **12/25** | 35237 | 39827 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 17.13% | 13.03% | 13.42% |
| S&P 500 Index | 17.88% | 14.42% | 14.82% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$119,014

* Total Number of Portfolio Holdings507

* Portfolio Turnover Rate 22.2%

* Total Advisory Fees Paid (amount in thousands)$465

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Common Stocks | 94.22% |
| Investment Companies | 5.23% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | 0.55% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Technology | 30.79% |
| Communications | 15.99% |
| Financial | 13.38% |
| Consumer, Non-cyclical | 13.14% |
| Consumer, Cyclical | 7.71% |
| Industrial | 7.12% |
| Money Market Funds | 4.47% |
| Energy | 2.69% |
| Utilities | 2.12% |
| Basic Materials | 1.28% |
| Exchange-Traded Funds | 0.76% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | 0.55% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

## **Material Fund Changes** 
This is a summary of certain changes to the Fund since December 31, 2024. For more complete information, you may review the Fund's most recent prospectus, which we expect to be effective by May 1 or upon request at www.PrincipalAM.com/pvcprospectuses.

Effective November 19, 2025, the Fund changed from Diversified to Non-Diversified and updated its Investment Strategies and Principal Risks. On December 9, 2025, the Fund's Board of Directors approved a Plan of Liquidation and Termination of the Fund. Pursuant to the Plan, the Fund will liquidate on or about March 25, 2026.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC42AR1-0

# Class 1

# MidCap Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about MidCap Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $53 | 0.53% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks long-term growth of capital. Under normal circumstances, the Fund invests at least 80% of its net assets, in equity securities of companies with medium market capitalizations. For this Fund, companies with medium market capitalizations are those with market capitalizations within the range of companies comprising the Russell MidCap<sup>®</sup> Index ("Index"). The Fund also invests in foreign securities. Over the year, the Fund benefited most from company selection in real estate and materials. Aerospace components business HEICO was the top contributor. The company gained share in its aftermarket business. Alternative asset manager Brookfield was the next contributor. The company highlighted its transformative phase of growth at its fall investor day. Lack of exposure to underperforming staples and energy companies contributed to performance relative to the Index. Relative performance versus the Index was impacted with quality companies out of favor following the April tariff-pause announcement, and sharp acceleration in high-growth, highly cyclical assets. Company selection in information technology was the biggest detractor. Constellation Software, Roper Technologies, and Tyler Technologies were impacted by the narrative that generative AI will one day replace software businesses. The team saw no evidence of a change in the competitive environment for these businesses. The biggest detractor was vehicle salvage business Copart, caused by lower volumes due to a rise in uninsured drivers. The company grew its other businesses and is well experienced managing through economic cycles.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i66ba77bb1c6f9179708e3d5c.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 1 Shares at net asset value $32,712** | **Russell 3000 Index $38,012** | **Russell MidCap Index $28,420** |
| **12/15** | 10000 | 10000 | 10000 |
| **1/16** | 9274 | 9436 | 9345 |
| **2/16** | 9361 | 9433 | 9450 |
| **3/16** | 10096 | 10097 | 10224 |
| **4/16** | 10165 | 10159 | 10333 |
| **5/16** | 10434 | 10341 | 10502 |
| **6/16** | 10427 | 10362 | 10550 |
| **7/16** | 10938 | 10774 | 11031 |
| **8/16** | 10903 | 10801 | 11004 |
| **9/16** | 10937 | 10818 | 11026 |
| **10/16** | 10640 | 10584 | 10676 |
| **11/16** | 10965 | 11058 | 11252 |
| **12/16** | 11037 | 11274 | 11380 |
| **1/17** | 11390 | 11486 | 11654 |
| **2/17** | 11868 | 11913 | 11984 |
| **3/17** | 12163 | 12047 | 12058 |
| **4/17** | 12486 | 12171 | 12168 |
| **5/17** | 12468 | 12280 | 12289 |
| **6/17** | 12843 | 12512 | 12470 |
| **7/17** | 12946 | 12536 | 12373 |
| **8/17** | 13205 | 12842 | 12716 |
| **9/17** | 13484 | 13122 | 12928 |
| **10/17** | 13823 | 13521 | 13363 |
| **12/17** | 13853 | 13656 | 13487 |
| **1/18** | 14466 | 14375 | 13995 |
| **2/18** | 13683 | 13846 | 13417 |
| **3/18** | 13783 | 13568 | 13425 |
| **4/18** | 13650 | 13619 | 13405 |
| **5/18** | 13958 | 14004 | 13709 |
| **6/18** | 14270 | 14095 | 13804 |
| **7/18** | 14666 | 14563 | 14147 |
| **8/18** | 14974 | 15074 | 14587 |
| **9/18** | 14920 | 15099 | 14493 |
| **10/18** | 13656 | 13988 | 13289 |
| **11/18** | 14168 | 14268 | 13616 |
| **12/18** | 12946 | 12940 | 12265 |
| **1/19** | 14138 | 14051 | 13589 |
| **2/19** | 14952 | 14545 | 14172 |
| **3/19** | 15443 | 14757 | 14294 |
| **4/19** | 16331 | 15346 | 14838 |
| **5/19** | 15830 | 14353 | 13927 |
| **6/19** | 16875 | 15361 | 14884 |
| **7/19** | 17185 | 15590 | 15096 |
| **8/19** | 17302 | 15272 | 14666 |
| **9/19** | 17440 | 15540 | 14955 |
| **10/19** | 17719 | 15875 | 15112 |
| **11/19** | 18275 | 16478 | 15652 |
| **12/19** | 18525 | 16954 | 16012 |
| **1/20** | 19137 | 16935 | 15883 |
| **2/20** | 17805 | 15549 | 14504 |
| **3/20** | 14106 | 13410 | 11677 |
| **4/20** | 15979 | 15187 | 13354 |
| **5/20** | 17416 | 15999 | 14293 |
| **6/20** | 17620 | 16364 | 14550 |
| **7/20** | 18698 | 17294 | 15405 |
| **8/20** | 19508 | 18546 | 15946 |
| **9/20** | 19058 | 17871 | 15636 |
| **10/20** | 18642 | 17485 | 15736 |
| **11/20** | 21027 | 19613 | 17911 |
| **12/20** | 21922 | 20495 | 18750 |
| **1/21** | 20968 | 20404 | 18700 |
| **2/21** | 22200 | 21042 | 19742 |
| **3/21** | 22703 | 21796 | 20276 |
| **4/21** | 24180 | 22919 | 21309 |
| **5/21** | 24269 | 23024 | 21480 |
| **6/21** | 24816 | 23592 | 21796 |
| **7/21** | 25842 | 23991 | 21964 |
| **8/21** | 25945 | 24675 | 22522 |
| **9/21** | 25000 | 23568 | 21594 |
| **10/21** | 26881 | 25161 | 22879 |
| **11/21** | 26052 | 24778 | 22082 |
| **12/21** | 27517 | 25754 | 22984 |
| **1/22** | 24613 | 24239 | 21291 |
| **2/22** | 23686 | 23628 | 21138 |
| **3/22** | 24330 | 24395 | 21679 |
| **4/22** | 22221 | 22206 | 20009 |
| **5/22** | 22088 | 22176 | 20025 |
| **6/22** | 22493 | 22227 | 19806 |
| **7/22** | 21617 | 21398 | 19184 |
| **8/22** | 21013 | 21005 | 18951 |
| **9/22** | 22588 | 22102 | 20090 |
| **12/22** | 21195 | 20808 | 19004 |
| **1/23** | 22998 | 22241 | 20583 |
| **2/23** | 22307 | 21721 | 20083 |
| **3/23** | 22386 | 22302 | 19775 |
| **4/23** | 22849 | 22539 | 19671 |
| **5/23** | 22679 | 22627 | 19121 |
| **6/23** | 24553 | 24172 | 20717 |
| **7/23** | 24751 | 25039 | 21538 |
| **8/23** | 24524 | 24555 | 20791 |
| **9/23** | 23263 | 23386 | 19747 |
| **10/23** | 22500 | 22766 | 18760 |
| **11/23** | 25323 | 24888 | 20680 |
| **12/23** | 26722 | 26209 | 22278 |
| **1/24** | 27028 | 26499 | 21961 |
| **2/24** | 28571 | 27933 | 23188 |
| **3/24** | 29669 | 28835 | 24194 |
| **4/24** | 27795 | 27566 | 22887 |
| **5/24** | 28758 | 28868 | 23540 |
| **6/24** | 28880 | 29762 | 23384 |
| **7/24** | 30708 | 30315 | 24486 |
| **8/24** | 31284 | 30975 | 24982 |
| **9/24** | 32047 | 31616 | 25538 |
| **10/24** | 31791 | 31384 | 25401 |
| **11/24** | 34651 | 33471 | 27642 |
| **12/24** | 32140 | 32448 | 25697 |
| **1/25** | 33830 | 33473 | 26790 |
| **2/25** | 33416 | 32831 | 26028 |
| **3/25** | 32033 | 30916 | 24822 |
| **4/25** | 31870 | 30709 | 24566 |
| **5/25** | 33087 | 32655 | 25970 |
| **6/25** | 34025 | 34314 | 26940 |
| **7/25** | 34336 | 35070 | 27439 |
| **8/25** | 34596 | 35881 | 28125 |
| **9/25** | 34094 | 37120 | 28375 |
| **10/25** | 32665 | 37915 | 28140 |
| **11/25** | 33055 | 38019 | 28498 |
| **12/25** | 32712 | 38012 | 28420 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 1.78% | 8.33% | 12.58% |
| Russell 3000 Index | 17.15% | 13.15% | 14.29% |
| Russell MidCap Index | 10.60% | 8.67% | 11.01% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Russell 3000 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Russell MidCap Index is included as an additional index for the Fund as it shows how the Fund's performance compares with the returns of an index of funds with similar investment objectives. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$582,063

* Total Number of Portfolio Holdings72

* Portfolio Turnover Rate 14.8%

* Total Advisory Fees Paid (amount in thousands)$3,435

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Common Stocks | 99.64% |
| Investment Companies | 0.69% |
| Other Assets and Liabilities | (0.33)% |
| Total Net Assets | 100.00% |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Financial | 27.98% |
| Consumer, Cyclical | 23.88% |
| Industrial | 22.90% |
| Technology | 12.68% |
| Utilities | 4.15% |
| Consumer, Non-cyclical | 3.94% |
| Communications | 2.37% |
| Basic Materials | 1.74% |
| Money Market Funds | 0.69% |
| Other Assets and Liabilities | (0.33)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC19AR1-0

# Class 2

# MidCap Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about MidCap Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $79 | 0.78% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks long-term growth of capital. Under normal circumstances, the Fund invests at least 80% of its net assets, in equity securities of companies with medium market capitalizations. For this Fund, companies with medium market capitalizations are those with market capitalizations within the range of companies comprising the Russell MidCap<sup>®</sup> Index ("Index"). The Fund also invests in foreign securities. Over the year, the Fund benefited most from company selection in real estate and materials. Aerospace components business HEICO was the top contributor. The company gained share in its aftermarket business. Alternative asset manager Brookfield was the next contributor. The company highlighted its transformative phase of growth at its fall investor day. Lack of exposure to underperforming staples and energy companies contributed to performance relative to the Index. Relative performance versus the Index was impacted with quality companies out of favor following the April tariff-pause announcement, and sharp acceleration in high-growth, highly cyclical assets. Company selection in information technology was the biggest detractor. Constellation Software, Roper Technologies, and Tyler Technologies were impacted by the narrative that generative AI will one day replace software businesses. The team saw no evidence of a change in the competitive environment for these businesses. The biggest detractor was vehicle salvage business Copart, caused by lower volumes due to a rise in uninsured drivers. The company grew its other businesses and is well experienced managing through economic cycles.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i1fae1e34283150a27e5fca2f.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 2 Shares at net asset value $31,905** | **Russell 3000 Index $38,012** | **Russell MidCap Index $28,420** |
| **12/15** | 10000 | 10000 | 10000 |
| **1/16** | 9274 | 9436 | 9345 |
| **2/16** | 9358 | 9433 | 9450 |
| **3/16** | 10091 | 10097 | 10224 |
| **4/16** | 10156 | 10159 | 10333 |
| **5/16** | 10424 | 10341 | 10502 |
| **6/16** | 10415 | 10362 | 10550 |
| **7/16** | 10922 | 10774 | 11031 |
| **8/16** | 10885 | 10801 | 11004 |
| **9/16** | 10916 | 10818 | 11026 |
| **10/16** | 10618 | 10584 | 10676 |
| **11/16** | 10942 | 11058 | 11252 |
| **12/16** | 11011 | 11274 | 11380 |
| **1/17** | 11361 | 11486 | 11654 |
| **2/17** | 11834 | 11913 | 11984 |
| **3/17** | 12123 | 12047 | 12058 |
| **4/17** | 12443 | 12171 | 12168 |
| **5/17** | 12423 | 12280 | 12289 |
| **6/17** | 12795 | 12512 | 12470 |
| **7/17** | 12891 | 12536 | 12373 |
| **8/17** | 13148 | 12842 | 12716 |
| **9/17** | 13423 | 13122 | 12928 |
| **10/17** | 13757 | 13521 | 13363 |
| **12/17** | 13785 | 13656 | 13487 |
| **1/18** | 14392 | 14375 | 13995 |
| **2/18** | 13610 | 13846 | 13417 |
| **3/18** | 13708 | 13568 | 13425 |
| **4/18** | 13570 | 13619 | 13405 |
| **5/18** | 13876 | 14004 | 13709 |
| **6/18** | 14184 | 14095 | 13804 |
| **7/18** | 14572 | 14563 | 14147 |
| **8/18** | 14875 | 15074 | 14587 |
| **9/18** | 14818 | 15099 | 14493 |
| **10/18** | 13559 | 13988 | 13289 |
| **11/18** | 14066 | 14268 | 13616 |
| **12/18** | 12850 | 12940 | 12265 |
| **1/19** | 14031 | 14051 | 13589 |
| **2/19** | 14834 | 14545 | 14172 |
| **3/19** | 15320 | 14757 | 14294 |
| **4/19** | 16197 | 15346 | 14838 |
| **5/19** | 15696 | 14353 | 13927 |
| **6/19** | 16730 | 15361 | 14884 |
| **7/19** | 17034 | 15590 | 15096 |
| **8/19** | 17146 | 15272 | 14666 |
| **9/19** | 17278 | 15540 | 14955 |
| **10/19** | 17550 | 15875 | 15112 |
| **11/19** | 18099 | 16478 | 15652 |
| **12/19** | 18340 | 16954 | 16012 |
| **1/20** | 18945 | 16935 | 15883 |
| **2/20** | 17624 | 15549 | 14504 |
| **3/20** | 13957 | 13410 | 11677 |
| **4/20** | 15806 | 15187 | 13354 |
| **5/20** | 17226 | 15999 | 14293 |
| **6/20** | 17423 | 16364 | 14550 |
| **7/20** | 18488 | 17294 | 15405 |
| **8/20** | 19284 | 18546 | 15946 |
| **9/20** | 18835 | 17871 | 15636 |
| **10/20** | 18420 | 17485 | 15736 |
| **11/20** | 20771 | 19613 | 17911 |
| **12/20** | 21653 | 20495 | 18750 |
| **1/21** | 20702 | 20404 | 18700 |
| **2/21** | 21918 | 21042 | 19742 |
| **3/21** | 22409 | 21796 | 20276 |
| **4/21** | 23861 | 22919 | 21309 |
| **5/21** | 23946 | 23024 | 21480 |
| **6/21** | 24478 | 23592 | 21796 |
| **7/21** | 25488 | 23991 | 21964 |
| **8/21** | 25584 | 24675 | 22522 |
| **9/21** | 24647 | 23568 | 21594 |
| **10/21** | 26496 | 25161 | 22879 |
| **11/21** | 25671 | 24778 | 22082 |
| **12/21** | 27109 | 25754 | 22984 |
| **1/22** | 24244 | 24239 | 21291 |
| **2/22** | 23326 | 23628 | 21138 |
| **3/22** | 23954 | 24395 | 21679 |
| **4/22** | 21874 | 22206 | 20009 |
| **5/22** | 21741 | 22176 | 20025 |
| **6/22** | 22127 | 22227 | 19806 |
| **7/22** | 21261 | 21398 | 19184 |
| **8/22** | 20657 | 21005 | 18951 |
| **9/22** | 22202 | 22102 | 20090 |
| **12/22** | 20830 | 20808 | 19004 |
| **1/23** | 22594 | 22241 | 20583 |
| **2/23** | 21910 | 21721 | 20083 |
| **3/23** | 21988 | 22302 | 19775 |
| **4/23** | 22437 | 22539 | 19671 |
| **5/23** | 22264 | 22627 | 19121 |
| **6/23** | 24101 | 24172 | 20717 |
| **7/23** | 24287 | 25039 | 21538 |
| **8/23** | 24060 | 24555 | 20791 |
| **9/23** | 22816 | 23386 | 19747 |
| **10/23** | 22064 | 22766 | 18760 |
| **11/23** | 24832 | 24888 | 20680 |
| **12/23** | 26192 | 26209 | 22278 |
| **1/24** | 26488 | 26499 | 21961 |
| **2/24** | 27997 | 27933 | 23188 |
| **3/24** | 29065 | 28835 | 24194 |
| **4/24** | 27223 | 27566 | 22887 |
| **5/24** | 28161 | 28868 | 23540 |
| **6/24** | 28275 | 29762 | 23384 |
| **7/24** | 30058 | 30315 | 24486 |
| **8/24** | 30616 | 30975 | 24982 |
| **9/24** | 31357 | 31616 | 25538 |
| **10/24** | 31098 | 31384 | 25401 |
| **11/24** | 33892 | 33471 | 27642 |
| **12/24** | 31426 | 32448 | 25697 |
| **1/25** | 33073 | 33473 | 26790 |
| **2/25** | 32662 | 32831 | 26028 |
| **3/25** | 31306 | 30916 | 24822 |
| **4/25** | 31135 | 30709 | 24566 |
| **5/25** | 32319 | 32655 | 25970 |
| **6/25** | 33226 | 34314 | 26940 |
| **7/25** | 33527 | 35070 | 27439 |
| **8/25** | 33772 | 35881 | 28125 |
| **9/25** | 33276 | 37120 | 28375 |
| **10/25** | 31874 | 37915 | 28140 |
| **11/25** | 32252 | 38019 | 28498 |
| **12/25** | 31905 | 38012 | 28420 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 2 Shares | 1.52% | 8.06% | 12.30% |
| Russell 3000 Index | 17.15% | 13.15% | 14.29% |
| Russell MidCap Index | 10.60% | 8.67% | 11.01% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Russell 3000 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Russell MidCap Index is included as an additional index for the Fund as it shows how the Fund's performance compares with the returns of an index of funds with similar investment objectives. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$582,063

* Total Number of Portfolio Holdings72

* Portfolio Turnover Rate 14.8%

* Total Advisory Fees Paid (amount in thousands)$3,435

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Common Stocks | 99.64% |
| Investment Companies | 0.69% |
| Other Assets and Liabilities | (0.33)% |
| Total Net Assets | 100.00% |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Financial | 27.98% |
| Consumer, Cyclical | 23.88% |
| Industrial | 22.90% |
| Technology | 12.68% |
| Utilities | 4.15% |
| Consumer, Non-cyclical | 3.94% |
| Communications | 2.37% |
| Basic Materials | 1.74% |
| Money Market Funds | 0.69% |
| Other Assets and Liabilities | (0.33)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC19AR2-0

# Class 1

# Principal Capital Appreciation Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Principal Capital Appreciation Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $67 | 0.63% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide long-term growth of capital. The Fund invests primarily in equity securities of U.S. companies with any market capitalization, but it has a greater exposure to large market capitalization companies than small or medium market capitalization companies. Those managing the Fund's investments seek to invest in securities of businesses that they believe are trading at a discount to their private market value (i.e., the value of the business if it was sold), have a competitive advantage, or have barriers to entry in their respective industries. Lam Research Corporation (LRCX) contributed to relative performance as the company beat expectations multiple times in the year which was driven by a continued recovery in NAND memory and sustained demand out of China. The company also raised guidance for their wafer fabrication equipment outlook to $105 billion from $100 billion which helped boost the stock. GE Vernova (GEV) contributed to relative performance as the company revised guidance higher and noted production slots for heavy-duty gas turbines are almost sold out through 2028. Constellation Energy Corporation (CEG) is the largest producer of carbon-free power in the U.S. and sells clean energy to commercial and retail customers as a deregulated utility. CEG aided results as the company announced a 20-year PPA agreement with META for the output of the Clinton Clean Energy Center and announced it was purchasing Calpine, a private gas-generation independent power producer. Deckers Outdoor Corporation (DECK) detracted from relative performance as shares underperformed as sales slowed in HOKA brand. Not owning Palantir Technologies Inc. (PLTR) detracted from relative performance as shares rallied meaningfully over the past year. Salesforce, Inc. (CRM) detracted from relative performance as the market reacted negatively to CRM's topline growth falling below 10% and to their intent to purchase Informatica.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](ia263a14a84ee89b05002de6a.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 1 Shares at net asset value $38,233** | **Russell 1000 Index $39,030** | **Russell 3000 Index $38,012** |
| **12/15** | 10000 | 10000 | 10000 |
| **1/16** | 9503 | 9462 | 9436 |
| **2/16** | 9459 | 9459 | 9433 |
| **3/16** | 10072 | 10117 | 10097 |
| **4/16** | 10022 | 10172 | 10159 |
| **5/16** | 10246 | 10351 | 10341 |
| **6/16** | 10260 | 10374 | 10362 |
| **7/16** | 10644 | 10769 | 10774 |
| **8/16** | 10628 | 10783 | 10801 |
| **9/16** | 10601 | 10792 | 10818 |
| **10/16** | 10314 | 10582 | 10584 |
| **11/16** | 10683 | 10999 | 11058 |
| **12/16** | 10911 | 11205 | 11274 |
| **1/17** | 11143 | 11431 | 11486 |
| **2/17** | 11563 | 11873 | 11913 |
| **3/17** | 11699 | 12006 | 12047 |
| **4/17** | 11841 | 12160 | 12171 |
| **5/17** | 11845 | 12244 | 12280 |
| **6/17** | 12100 | 12487 | 12512 |
| **7/17** | 12118 | 12526 | 12536 |
| **8/17** | 12372 | 12793 | 12842 |
| **9/17** | 12649 | 13086 | 13122 |
| **10/17** | 13064 | 13485 | 13521 |
| **12/17** | 13175 | 13636 | 13656 |
| **1/18** | 13858 | 14384 | 14375 |
| **2/18** | 13406 | 13856 | 13846 |
| **3/18** | 13092 | 13541 | 13568 |
| **4/18** | 13087 | 13587 | 13619 |
| **5/18** | 13443 | 13934 | 14004 |
| **6/18** | 13535 | 14024 | 14095 |
| **7/18** | 14034 | 14508 | 14563 |
| **8/18** | 14481 | 15008 | 15074 |
| **9/18** | 14522 | 15065 | 15099 |
| **10/18** | 13557 | 13999 | 13988 |
| **11/18** | 13946 | 14284 | 14268 |
| **12/18** | 12726 | 12983 | 12940 |
| **1/19** | 13705 | 14071 | 14051 |
| **2/19** | 14168 | 14548 | 14545 |
| **3/19** | 14428 | 14801 | 14757 |
| **4/19** | 15122 | 15399 | 15346 |
| **5/19** | 14261 | 14417 | 14353 |
| **6/19** | 15191 | 15430 | 15361 |
| **7/19** | 15605 | 15669 | 15590 |
| **8/19** | 15354 | 15382 | 15272 |
| **9/19** | 15603 | 15649 | 15540 |
| **10/19** | 15932 | 15980 | 15875 |
| **11/19** | 16404 | 16584 | 16478 |
| **12/19** | 16860 | 17063 | 16954 |
| **1/20** | 16854 | 17082 | 16935 |
| **2/20** | 15389 | 15686 | 15549 |
| **3/20** | 13589 | 13613 | 13410 |
| **4/20** | 15131 | 15412 | 15187 |
| **5/20** | 15982 | 16225 | 15999 |
| **6/20** | 16278 | 16584 | 16364 |
| **7/20** | 17480 | 17555 | 17294 |
| **8/20** | 18610 | 18843 | 18546 |
| **9/20** | 18014 | 18155 | 17871 |
| **10/20** | 17582 | 17717 | 17485 |
| **11/20** | 19298 | 19803 | 19613 |
| **12/20** | 20015 | 20640 | 20495 |
| **1/21** | 19718 | 20470 | 20404 |
| **2/21** | 20179 | 21064 | 21042 |
| **3/21** | 20937 | 21861 | 21796 |
| **4/21** | 22034 | 23037 | 22919 |
| **5/21** | 22198 | 23147 | 23024 |
| **6/21** | 22857 | 23727 | 23592 |
| **7/21** | 23493 | 24220 | 23991 |
| **8/21** | 24159 | 24921 | 24675 |
| **9/21** | 22944 | 23776 | 23568 |
| **10/21** | 24710 | 25426 | 25161 |
| **11/21** | 24606 | 25085 | 24778 |
| **12/21** | 25584 | 26101 | 25754 |
| **1/22** | 24087 | 24629 | 24239 |
| **2/22** | 23134 | 23953 | 23628 |
| **3/22** | 24038 | 24762 | 24395 |
| **4/22** | 21924 | 22554 | 22206 |
| **5/22** | 22058 | 22520 | 22176 |
| **6/22** | 22211 | 22556 | 22227 |
| **7/22** | 21459 | 21690 | 21398 |
| **8/22** | 21292 | 21261 | 21005 |
| **9/22** | 22659 | 22412 | 22102 |
| **12/22** | 21384 | 21108 | 20808 |
| **1/23** | 22567 | 22524 | 22241 |
| **2/23** | 21898 | 21988 | 21721 |
| **3/23** | 22638 | 22683 | 22302 |
| **4/23** | 23039 | 22964 | 22539 |
| **5/23** | 23032 | 23071 | 22627 |
| **6/23** | 24511 | 24629 | 24172 |
| **7/23** | 25321 | 25476 | 25039 |
| **8/23** | 24849 | 25031 | 24555 |
| **9/23** | 23790 | 23854 | 23386 |
| **10/23** | 23396 | 23278 | 22766 |
| **11/23** | 25503 | 25452 | 24888 |
| **12/23** | 26762 | 26708 | 26209 |
| **1/24** | 27368 | 27081 | 26499 |
| **2/24** | 28937 | 28543 | 27933 |
| **3/24** | 29976 | 29458 | 28835 |
| **4/24** | 28695 | 28205 | 27566 |
| **5/24** | 30181 | 29533 | 28868 |
| **6/24** | 31121 | 30510 | 29762 |
| **7/24** | 31500 | 30954 | 30315 |
| **8/24** | 32167 | 31688 | 30975 |
| **9/24** | 32827 | 32366 | 31616 |
| **10/24** | 32591 | 32139 | 31384 |
| **11/24** | 34696 | 34209 | 33471 |
| **12/24** | 33679 | 33255 | 32448 |
| **1/25** | 34798 | 34313 | 33473 |
| **2/25** | 33892 | 33713 | 32831 |
| **3/25** | 31779 | 31762 | 30916 |
| **4/25** | 31645 | 31573 | 30709 |
| **5/25** | 33450 | 33589 | 32655 |
| **6/25** | 34956 | 35290 | 34314 |
| **7/25** | 35744 | 36074 | 35070 |
| **8/25** | 36399 | 36833 | 35881 |
| **9/25** | 37762 | 38110 | 37120 |
| **10/25** | 38541 | 38932 | 37915 |
| **11/25** | 38592 | 39027 | 38019 |
| **12/25** | 38233 | 39030 | 38012 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 13.52% | 13.82% | 14.35% |
| Russell 1000 Index | 17.37% | 13.59% | 14.59% |
| Russell 3000 Index | 17.15% | 13.15% | 14.29% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. Effective March 1, 2025, the Fund changed its index to the Russell 1000 Index because it more closely aligns with the Fund's investment approach. Prior to March 1, 2025, the Fund's index was the Russell 3000 Index. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$246,226

* Total Number of Portfolio Holdings93

* Portfolio Turnover Rate 58.0%

* Total Advisory Fees Paid (amount in thousands)$1,450

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Common Stocks | 99.16% |
| Investment Companies | 0.86% |
| Other Assets and Liabilities | (0.02)% |
| Total Net Assets | 100.00% |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Technology | 28.89% |
| Communications | 17.60% |
| Financial | 14.97% |
| Consumer, Non-cyclical | 11.76% |
| Consumer, Cyclical | 10.71% |
| Industrial | 8.48% |
| Energy | 3.27% |
| Utilities | 2.07% |
| Basic Materials | 1.41% |
| Money Market Funds | 0.86% |
| Other Assets and Liabilities | (0.02)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC21AR1-0

# Class 2

# Principal Capital Appreciation Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Principal Capital Appreciation Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $94 | 0.88% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide long-term growth of capital. The Fund invests primarily in equity securities of U.S. companies with any market capitalization, but it has a greater exposure to large market capitalization companies than small or medium market capitalization companies. Those managing the Fund's investments seek to invest in securities of businesses that they believe are trading at a discount to their private market value (i.e., the value of the business if it was sold), have a competitive advantage, or have barriers to entry in their respective industries. Lam Research Corporation (LRCX) contributed to relative performance as the company beat expectations multiple times in the year which was driven by a continued recovery in NAND memory and sustained demand out of China. The company also raised guidance for their wafer fabrication equipment outlook to $105 billion from $100 billion which helped boost the stock. GE Vernova (GEV) contributed to relative performance as the company revised guidance higher and noted production slots for heavy-duty gas turbines are almost sold out through 2028. Constellation Energy Corporation (CEG) is the largest producer of carbon-free power in the U.S. and sells clean energy to commercial and retail customers as a deregulated utility. CEG aided results as the company announced a 20-year PPA agreement with META for the output of the Clinton Clean Energy Center and announced it was purchasing Calpine, a private gas-generation independent power producer. Deckers Outdoor Corporation (DECK) detracted from relative performance as shares underperformed as sales slowed in HOKA brand. Not owning Palantir Technologies Inc. (PLTR) detracted from relative performance as shares rallied meaningfully over the past year. Salesforce, Inc. (CRM) detracted from relative performance as the market reacted negatively to CRM's topline growth falling below 10% and to their intent to purchase Informatica.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i8ea81390290cd69a1bf388b5.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 2 Shares at net asset value $37,289** | **Russell 1000 Index $39,030** | **Russell 3000 Index $38,012** |
| **12/15** | 10000 | 10000 | 10000 |
| **1/16** | 9503 | 9462 | 9436 |
| **2/16** | 9453 | 9459 | 9433 |
| **3/16** | 10063 | 10117 | 10097 |
| **4/16** | 10018 | 10172 | 10159 |
| **5/16** | 10235 | 10351 | 10341 |
| **6/16** | 10248 | 10374 | 10362 |
| **7/16** | 10628 | 10769 | 10774 |
| **8/16** | 10610 | 10783 | 10801 |
| **9/16** | 10582 | 10792 | 10818 |
| **10/16** | 10293 | 10582 | 10584 |
| **11/16** | 10660 | 10999 | 11058 |
| **12/16** | 10885 | 11205 | 11274 |
| **1/17** | 11110 | 11431 | 11486 |
| **2/17** | 11533 | 11873 | 11913 |
| **3/17** | 11661 | 12006 | 12047 |
| **4/17** | 11799 | 12160 | 12171 |
| **5/17** | 11804 | 12244 | 12280 |
| **6/17** | 12052 | 12487 | 12512 |
| **7/17** | 12068 | 12526 | 12536 |
| **8/17** | 12319 | 12793 | 12842 |
| **9/17** | 12593 | 13086 | 13122 |
| **10/17** | 13006 | 13485 | 13521 |
| **12/17** | 13112 | 13636 | 13656 |
| **1/18** | 13785 | 14384 | 14375 |
| **2/18** | 13335 | 13856 | 13846 |
| **3/18** | 13020 | 13541 | 13568 |
| **4/18** | 13010 | 13587 | 13619 |
| **5/18** | 13363 | 13934 | 14004 |
| **6/18** | 13451 | 14024 | 14095 |
| **7/18** | 13943 | 14508 | 14563 |
| **8/18** | 14384 | 15008 | 15074 |
| **9/18** | 14418 | 15065 | 15099 |
| **10/18** | 13460 | 13999 | 13988 |
| **11/18** | 13845 | 14284 | 14268 |
| **12/18** | 12635 | 12983 | 12940 |
| **1/19** | 13603 | 14071 | 14051 |
| **2/19** | 14057 | 14548 | 14545 |
| **3/19** | 14314 | 14801 | 14757 |
| **4/19** | 14996 | 15399 | 15346 |
| **5/19** | 14141 | 14417 | 14353 |
| **6/19** | 15060 | 15430 | 15361 |
| **7/19** | 15465 | 15669 | 15590 |
| **8/19** | 15213 | 15382 | 15272 |
| **9/19** | 15457 | 15649 | 15540 |
| **10/19** | 15782 | 15980 | 15875 |
| **11/19** | 16245 | 16584 | 16478 |
| **12/19** | 16690 | 17063 | 16954 |
| **1/20** | 16685 | 17082 | 16935 |
| **2/20** | 15226 | 15686 | 15549 |
| **3/20** | 13443 | 13613 | 13410 |
| **4/20** | 14968 | 15412 | 15187 |
| **5/20** | 15804 | 16225 | 15999 |
| **6/20** | 16096 | 16584 | 16364 |
| **7/20** | 17280 | 17555 | 17294 |
| **8/20** | 18397 | 18843 | 18546 |
| **9/20** | 17797 | 18155 | 17871 |
| **10/20** | 17370 | 17717 | 17485 |
| **11/20** | 19060 | 19803 | 19613 |
| **12/20** | 19768 | 20640 | 20495 |
| **1/21** | 19469 | 20470 | 20404 |
| **2/21** | 19920 | 21064 | 21042 |
| **3/21** | 20668 | 21861 | 21796 |
| **4/21** | 21744 | 23037 | 22919 |
| **5/21** | 21902 | 23147 | 23024 |
| **6/21** | 22551 | 23727 | 23592 |
| **7/21** | 23170 | 24220 | 23991 |
| **8/21** | 23819 | 24921 | 24675 |
| **9/21** | 22621 | 23776 | 23568 |
| **10/21** | 24352 | 25426 | 25161 |
| **11/21** | 24242 | 25085 | 24778 |
| **12/21** | 25203 | 26101 | 25754 |
| **1/22** | 23728 | 24629 | 24239 |
| **2/22** | 22780 | 23953 | 23628 |
| **3/22** | 23667 | 24762 | 24395 |
| **4/22** | 21581 | 22554 | 22206 |
| **5/22** | 21709 | 22520 | 22176 |
| **6/22** | 21850 | 22556 | 22227 |
| **7/22** | 21103 | 21690 | 21398 |
| **8/22** | 20937 | 21261 | 21005 |
| **9/22** | 22270 | 22412 | 22102 |
| **12/22** | 21014 | 21108 | 20808 |
| **1/23** | 22172 | 22524 | 22241 |
| **2/23** | 21515 | 21988 | 21721 |
| **3/23** | 22235 | 22683 | 22302 |
| **4/23** | 22623 | 22964 | 22539 |
| **5/23** | 22609 | 23071 | 22627 |
| **6/23** | 24056 | 24629 | 24172 |
| **7/23** | 24853 | 25476 | 25039 |
| **8/23** | 24380 | 25031 | 24555 |
| **9/23** | 23327 | 23854 | 23386 |
| **10/23** | 22948 | 23278 | 22766 |
| **11/23** | 24998 | 25452 | 24888 |
| **12/23** | 26236 | 26708 | 26209 |
| **1/24** | 26820 | 27081 | 26499 |
| **2/24** | 28354 | 28543 | 27933 |
| **3/24** | 29364 | 29458 | 28835 |
| **4/24** | 28104 | 28205 | 27566 |
| **5/24** | 29554 | 29533 | 28868 |
| **6/24** | 30465 | 30510 | 29762 |
| **7/24** | 30830 | 30954 | 30315 |
| **8/24** | 31483 | 31688 | 30975 |
| **9/24** | 32115 | 32366 | 31616 |
| **10/24** | 31886 | 32139 | 31384 |
| **11/24** | 33937 | 34209 | 33471 |
| **12/24** | 32935 | 33255 | 32448 |
| **1/25** | 34016 | 34313 | 33473 |
| **2/25** | 33125 | 33713 | 32831 |
| **3/25** | 31049 | 31762 | 30916 |
| **4/25** | 30923 | 31573 | 30709 |
| **5/25** | 32675 | 33589 | 32655 |
| **6/25** | 34135 | 35290 | 34314 |
| **7/25** | 34900 | 36074 | 35070 |
| **8/25** | 35531 | 36833 | 35881 |
| **9/25** | 36860 | 38110 | 37120 |
| **10/25** | 37606 | 38932 | 37915 |
| **11/25** | 37649 | 39027 | 38019 |
| **12/25** | 37289 | 39030 | 38012 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 2 Shares | 13.22% | 13.53% | 14.07% |
| Russell 1000 Index | 17.37% | 13.59% | 14.59% |
| Russell 3000 Index | 17.15% | 13.15% | 14.29% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. Effective March 1, 2025, the Fund changed its index to the Russell 1000 Index because it more closely aligns with the Fund's investment approach. Prior to March 1, 2025, the Fund's index was the Russell 3000 Index. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$246,226

* Total Number of Portfolio Holdings93

* Portfolio Turnover Rate 58.0%

* Total Advisory Fees Paid (amount in thousands)$1,450

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Common Stocks | 99.16% |
| Investment Companies | 0.86% |
| Other Assets and Liabilities | (0.02)% |
| Total Net Assets | 100.00% |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Technology | 28.89% |
| Communications | 17.60% |
| Financial | 14.97% |
| Consumer, Non-cyclical | 11.76% |
| Consumer, Cyclical | 10.71% |
| Industrial | 8.48% |
| Energy | 3.27% |
| Utilities | 2.07% |
| Basic Materials | 1.41% |
| Money Market Funds | 0.86% |
| Other Assets and Liabilities | (0.02)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC21AR2-0

# Class 1

# Principal LifeTime 2020 Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Principal LifeTime 2020 Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $1 | 0.01% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year in the Fund's name. It is a fund of funds and invests in funds of Principal Exchange-Traded Funds, Principal Funds, Inc., and Principal Variable Contracts Funds, Inc. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities. The asset class diversification of the Fund is designed to moderate overall price volatility. Asset class positioning was a detractor from investment performance on average due to an underweight to non-U.S. equity relative to the S&P Target Date Indices. An overweight to short-term bonds in the near-dated vintages also detracted. However, an overweight to equity and an underweight to fixed income was a positive contributor for the year. Style selection was positive for the year due to the Russell indices outperforming the S&P indices within the U.S. mid and small cap equity asset classes. Active management within the U.S. equity asset class detracted for the year as the Blue Chip, LargeCap Growth I, Equity Income, LargeCap Value III, MidCap, and Small-MidCap Dividend Income underlying investment options underperformed their respective indices. All fixed income managers, along with International SmallCap, Real Estate Securities, and Diversified Real Asset also underperformed. However, Global Emerging Markets and International Equity outperformed their respective indices for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i153536d5472f714b1e263d9c.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 1 Shares at net asset value $19,254** | **Bloomberg US Aggregate Index $12,199** | **S&P Target Date 2020 Index $19,323** |
| **12/15** | 10000 | 10000 | 10000 |
| **1/16** | 9676 | 10138 | 9735 |
| **2/16** | 9644 | 10210 | 9729 |
| **3/16** | 10079 | 10303 | 10176 |
| **4/16** | 10174 | 10343 | 10246 |
| **5/16** | 10237 | 10345 | 10312 |
| **6/16** | 10269 | 10531 | 10379 |
| **7/16** | 10538 | 10598 | 10623 |
| **8/16** | 10559 | 10586 | 10638 |
| **9/16** | 10592 | 10580 | 10668 |
| **10/16** | 10442 | 10499 | 10510 |
| **11/16** | 10467 | 10250 | 10574 |
| **12/16** | 10576 | 10265 | 10722 |
| **1/17** | 10776 | 10285 | 10867 |
| **2/17** | 10968 | 10354 | 11058 |
| **3/17** | 11177 | 10428 | 11232 |
| **4/17** | 11327 | 10509 | 11359 |
| **5/17** | 11361 | 10498 | 11399 |
| **6/17** | 11561 | 10543 | 11552 |
| **7/17** | 11628 | 10638 | 11584 |
| **8/17** | 11774 | 10587 | 11720 |
| **9/17** | 11930 | 10593 | 11847 |
| **10/17** | 12059 | 10580 | 11995 |
| **12/17** | 12162 | 10628 | 12095 |
| **1/18** | 12524 | 10506 | 12351 |
| **2/18** | 12128 | 10406 | 12049 |
| **3/18** | 12059 | 10473 | 11983 |
| **4/18** | 12111 | 10395 | 12010 |
| **5/18** | 12171 | 10469 | 12122 |
| **6/18** | 12145 | 10456 | 12114 |
| **7/18** | 12369 | 10459 | 12291 |
| **8/18** | 12464 | 10526 | 12415 |
| **9/18** | 12465 | 10458 | 12396 |
| **10/18** | 11880 | 10376 | 11877 |
| **11/18** | 11972 | 10438 | 12006 |
| **12/18** | 11506 | 10629 | 11592 |
| **1/19** | 12091 | 10742 | 12128 |
| **2/19** | 12301 | 10736 | 12311 |
| **3/19** | 12465 | 10942 | 12455 |
| **4/19** | 12739 | 10945 | 12676 |
| **5/19** | 12428 | 11139 | 12362 |
| **6/19** | 12912 | 11279 | 12814 |
| **7/19** | 12958 | 11304 | 12863 |
| **8/19** | 12967 | 11597 | 12846 |
| **9/19** | 13053 | 11535 | 12963 |
| **10/19** | 13190 | 11570 | 13132 |
| **11/19** | 13376 | 11564 | 13298 |
| **12/19** | 13591 | 11556 | 13507 |
| **1/20** | 13650 | 11778 | 13525 |
| **2/20** | 13219 | 11990 | 13058 |
| **3/20** | 12017 | 11920 | 12082 |
| **4/20** | 12867 | 12132 | 12835 |
| **5/20** | 13288 | 12188 | 13166 |
| **6/20** | 13522 | 12265 | 13368 |
| **7/20** | 13982 | 12448 | 13760 |
| **8/20** | 14353 | 12348 | 14067 |
| **9/20** | 14145 | 12341 | 13868 |
| **10/20** | 13991 | 12286 | 13727 |
| **11/20** | 14933 | 12406 | 14559 |
| **12/20** | 15342 | 12423 | 14890 |
| **1/21** | 15230 | 12334 | 14845 |
| **2/21** | 15445 | 12156 | 14961 |
| **3/21** | 15619 | 12005 | 15107 |
| **4/21** | 16049 | 12099 | 15456 |
| **5/21** | 16192 | 12139 | 15581 |
| **6/21** | 16315 | 12224 | 15696 |
| **7/21** | 16468 | 12361 | 15824 |
| **8/21** | 16632 | 12337 | 16007 |
| **9/21** | 16231 | 12230 | 15659 |
| **10/21** | 16650 | 12227 | 16034 |
| **11/21** | 16397 | 12263 | 15856 |
| **12/21** | 16750 | 12232 | 16195 |
| **1/22** | 16176 | 11968 | 15633 |
| **2/22** | 15867 | 11835 | 15439 |
| **3/22** | 15812 | 11506 | 15431 |
| **4/22** | 14985 | 11069 | 14644 |
| **5/22** | 15062 | 11141 | 14697 |
| **6/22** | 14996 | 11234 | 14627 |
| **7/22** | 14555 | 10917 | 14222 |
| **8/22** | 14007 | 10310 | 13722 |
| **9/22** | 14674 | 10689 | 14382 |
| **12/22** | 14340 | 10641 | 14119 |
| **1/23** | 15031 | 10968 | 14765 |
| **2/23** | 14686 | 10684 | 14464 |
| **3/23** | 14957 | 10956 | 14759 |
| **4/23** | 15105 | 11022 | 14890 |
| **5/23** | 14908 | 10902 | 14724 |
| **6/23** | 15303 | 10863 | 15091 |
| **7/23** | 15550 | 10856 | 15339 |
| **8/23** | 15328 | 10786 | 15119 |
| **9/23** | 14876 | 10512 | 14679 |
| **10/23** | 14592 | 10346 | 14380 |
| **11/23** | 15455 | 10815 | 15241 |
| **12/23** | 16099 | 11229 | 15859 |
| **1/24** | 16112 | 11198 | 15877 |
| **2/24** | 16331 | 11040 | 16072 |
| **3/24** | 16666 | 11142 | 16367 |
| **4/24** | 16228 | 10860 | 15962 |
| **5/24** | 16627 | 11044 | 16385 |
| **6/24** | 16743 | 11149 | 16575 |
| **7/24** | 17091 | 11409 | 16919 |
| **8/24** | 17387 | 11573 | 17197 |
| **9/24** | 17631 | 11728 | 17475 |
| **10/24** | 17295 | 11437 | 17113 |
| **11/24** | 17725 | 11558 | 17466 |
| **12/24** | 17295 | 11369 | 17142 |
| **1/25** | 17644 | 11430 | 17431 |
| **2/25** | 17778 | 11681 | 17566 |
| **3/25** | 17456 | 11685 | 17323 |
| **4/25** | 17483 | 11731 | 17413 |
| **5/25** | 17845 | 11647 | 17773 |
| **6/25** | 18301 | 11826 | 18218 |
| **7/25** | 18382 | 11795 | 18297 |
| **8/25** | 18704 | 11936 | 18633 |
| **9/25** | 18980 | 12067 | 18968 |
| **10/25** | 19081 | 12142 | 19167 |
| **11/25** | 19225 | 12217 | 19253 |
| **12/25** | 19254 | 12199 | 19323 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 11.33% | 4.65% | 6.77% |
| Bloomberg US Aggregate Index | 7.30% | -0.36% | 2.01% |
| S&P Target Date 2020 Index | 12.72% | 5.35% | 6.81% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Bloomberg US Aggregate Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The S&P Target Date 2020 Index is included as an additional index for the Fund as it shows how the Fund's performance compares with the returns of an index of funds with similar investment objectives. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$139,572

* Total Number of Portfolio Holdings18

* Portfolio Turnover Rate 38.1%

* Total Advisory Fees Paid (amount in thousands)$0

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 100.00% |
| Other Assets and Liabilities | 0.00% |
| Total Net Assets | 100.00% |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Fixed Income Funds | 57.61% |
| Domestic Equity Funds | 28.52% |
| International Equity Funds | 13.46% |
| Specialty Funds | 0.41% |
| Other Assets and Liabilities | 0.00% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC23AR1-0

# Class 1

# Principal LifeTime 2030 Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Principal LifeTime 2030 Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $1 | 0.01% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year in the Fund's name. It is a fund of funds and invests in funds of Principal Exchange-Traded Funds, Principal Funds, Inc., and Principal Variable Contracts Funds, Inc. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities. The asset class diversification of the Fund is designed to moderate overall price volatility. Asset class positioning was a detractor from investment performance on average due to an underweight to non-U.S. equity relative to the S&P Target Date Indices. An overweight to short-term bonds in the near-dated vintages also detracted. However, an overweight to equity and an underweight to fixed income was a positive contributor for the year. Style selection was positive for the year due to the Russell indices outperforming the S&P indices within the U.S. mid and small cap equity asset classes. Active management within the U.S. equity asset class detracted for the year as the Blue Chip, LargeCap Growth I, Equity Income, LargeCap Value III, MidCap, and Small-MidCap Dividend Income underlying investment options underperformed their respective indices. All fixed income managers, along with International SmallCap, Real Estate Securities, and Diversified Real Asset also underperformed. However, Global Emerging Markets and International Equity outperformed their respective indices for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](ib9be1544ad28d252b2f69af8.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 1 Shares at net asset value $21,736** | **S&P 1500 Index $38,601** | **S&P Target Date 2030 Index $22,432** |
| **12/15** | 10000 | 10000 | 10000 |
| **1/16** | 9581 | 9495 | 9647 |
| **2/16** | 9520 | 9496 | 9619 |
| **3/16** | 10035 | 10157 | 10152 |
| **4/16** | 10122 | 10205 | 10232 |
| **5/16** | 10201 | 10391 | 10313 |
| **6/16** | 10201 | 10420 | 10356 |
| **7/16** | 10507 | 10814 | 10651 |
| **8/16** | 10531 | 10836 | 10673 |
| **9/16** | 10559 | 10835 | 10707 |
| **10/16** | 10374 | 10621 | 10524 |
| **11/16** | 10448 | 11077 | 10654 |
| **12/16** | 10587 | 11303 | 10834 |
| **1/17** | 10818 | 11507 | 11011 |
| **2/17** | 11049 | 11943 | 11240 |
| **3/17** | 11298 | 12072 | 11446 |
| **4/17** | 11474 | 12212 | 11595 |
| **5/17** | 11520 | 12305 | 11656 |
| **6/17** | 11761 | 12544 | 11858 |
| **7/17** | 11835 | 12555 | 11875 |
| **8/17** | 12025 | 12852 | 12077 |
| **9/17** | 12215 | 13145 | 12253 |
| **10/17** | 12405 | 13556 | 12463 |
| **12/17** | 12519 | 13691 | 12588 |
| **1/18** | 13023 | 14434 | 12989 |
| **2/18** | 12538 | 13894 | 12584 |
| **3/18** | 12434 | 13592 | 12469 |
| **4/18** | 12500 | 13641 | 12526 |
| **5/18** | 12586 | 14003 | 12663 |
| **6/18** | 12538 | 14089 | 12644 |
| **7/18** | 12824 | 14592 | 12896 |
| **8/18** | 12938 | 15074 | 13050 |
| **9/18** | 12951 | 15125 | 13042 |
| **10/18** | 12178 | 14047 | 12312 |
| **11/18** | 12298 | 14341 | 12479 |
| **12/18** | 11635 | 13012 | 11834 |
| **1/19** | 12379 | 14085 | 12549 |
| **2/19** | 12670 | 14551 | 12808 |
| **3/19** | 12841 | 14787 | 12945 |
| **4/19** | 13182 | 15385 | 13258 |
| **5/19** | 12700 | 14381 | 12742 |
| **6/19** | 13333 | 15402 | 13346 |
| **7/19** | 13383 | 15620 | 13401 |
| **8/19** | 13313 | 15334 | 13269 |
| **9/19** | 13449 | 15638 | 13463 |
| **10/19** | 13644 | 15965 | 13699 |
| **11/19** | 13903 | 16536 | 13936 |
| **12/19** | 14196 | 17033 | 14245 |
| **1/20** | 14196 | 16981 | 14181 |
| **2/20** | 13536 | 15564 | 13427 |
| **3/20** | 11967 | 13529 | 12054 |
| **4/20** | 13038 | 15272 | 13029 |
| **5/20** | 13568 | 16020 | 13470 |
| **6/20** | 13849 | 16338 | 13735 |
| **7/20** | 14434 | 17244 | 14234 |
| **8/20** | 14953 | 18435 | 14726 |
| **9/20** | 14668 | 17737 | 14424 |
| **10/20** | 14454 | 17333 | 14234 |
| **11/20** | 15747 | 19292 | 15443 |
| **12/20** | 16309 | 20085 | 15942 |
| **1/21** | 16151 | 19950 | 15899 |
| **2/21** | 16534 | 20574 | 16165 |
| **3/21** | 16826 | 21473 | 16457 |
| **4/21** | 17421 | 22589 | 16961 |
| **5/21** | 17601 | 22748 | 17139 |
| **6/21** | 17747 | 23220 | 17267 |
| **7/21** | 17927 | 23715 | 17395 |
| **8/21** | 18175 | 24415 | 17667 |
| **9/21** | 17617 | 23303 | 17188 |
| **10/21** | 18242 | 24899 | 17731 |
| **11/21** | 17865 | 24684 | 17451 |
| **12/21** | 18395 | 25799 | 17951 |
| **1/22** | 17605 | 24421 | 17223 |
| **2/22** | 17157 | 23771 | 16971 |
| **3/22** | 17181 | 24602 | 17066 |
| **4/22** | 16084 | 22484 | 16050 |
| **5/22** | 16167 | 22542 | 16115 |
| **6/22** | 16084 | 22590 | 15977 |
| **7/22** | 15506 | 21679 | 15491 |
| **8/22** | 14919 | 21321 | 14984 |
| **9/22** | 15795 | 22511 | 15826 |
| **12/22** | 15298 | 21212 | 15444 |
| **1/23** | 16213 | 22598 | 16277 |
| **2/23** | 15769 | 22062 | 15925 |
| **3/23** | 16069 | 22730 | 16244 |
| **4/23** | 16252 | 23031 | 16412 |
| **5/23** | 16004 | 23072 | 16212 |
| **6/23** | 16619 | 24637 | 16763 |
| **7/23** | 16945 | 25455 | 17126 |
| **8/23** | 16645 | 25015 | 16824 |
| **9/23** | 16029 | 23809 | 16264 |
| **10/23** | 15635 | 23242 | 15875 |
| **11/23** | 16790 | 25352 | 16966 |
| **12/23** | 17606 | 26613 | 17729 |
| **1/24** | 17620 | 26969 | 17743 |
| **2/24** | 17987 | 28405 | 18091 |
| **3/24** | 18422 | 29357 | 18485 |
| **4/24** | 17823 | 28114 | 17968 |
| **5/24** | 18354 | 29500 | 18520 |
| **6/24** | 18490 | 30432 | 18749 |
| **7/24** | 18925 | 30947 | 19169 |
| **8/24** | 19305 | 31623 | 19525 |
| **9/24** | 19592 | 32271 | 19869 |
| **10/24** | 19185 | 31968 | 19427 |
| **11/24** | 19775 | 33938 | 19915 |
| **12/24** | 19199 | 32988 | 19484 |
| **1/25** | 19705 | 33927 | 19885 |
| **2/25** | 19789 | 33390 | 19972 |
| **3/25** | 19298 | 31507 | 19582 |
| **4/25** | 19312 | 31240 | 19699 |
| **5/25** | 19887 | 33184 | 20282 |
| **6/25** | 20490 | 34837 | 20880 |
| **7/25** | 20617 | 35598 | 21006 |
| **8/25** | 21024 | 36385 | 21467 |
| **9/25** | 21390 | 37630 | 21929 |
| **10/25** | 21526 | 38428 | 22197 |
| **11/25** | 21706 | 38578 | 22306 |
| **12/25** | 21736 | 38601 | 22432 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 13.21% | 5.91% | 8.07% |
| S&P 1500 Index | 17.02% | 13.96% | 14.46% |
| S&P Target Date 2030 Index | 15.13% | 7.07% | 8.41% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The S&P 1500 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The S&P Target Date 2030 Index is included as an additional index for the Fund as it shows how the Fund's performance compares with the returns of an index of funds with similar investment objectives. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$332,246

* Total Number of Portfolio Holdings18

* Portfolio Turnover Rate 43.1%

* Total Advisory Fees Paid (amount in thousands)$0

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 100.00% |
| Other Assets and Liabilities | 0.00% |
| Total Net Assets | 100.00% |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Fixed Income Funds | 42.02% |
| Domestic Equity Funds | 38.91% |
| International Equity Funds | 18.59% |
| Specialty Funds | 0.48% |
| Other Assets and Liabilities | 0.00% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC24AR1-0

# Class 1

# Principal LifeTime 2040 Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Principal LifeTime 2040 Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $1 | 0.01% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year in the Fund's name. It is a fund of funds and invests in funds of Principal Exchange-Traded Funds, Principal Funds, Inc., and Principal Variable Contracts Funds, Inc. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities. The asset class diversification of the Fund is designed to moderate overall price volatility. Asset class positioning was a detractor from investment performance on average due to an underweight to non-U.S. equity relative to the S&P Target Date Indices. An overweight to short-term bonds in the near-dated vintages also detracted. However, an overweight to equity and an underweight to fixed income was a positive contributor for the year. Style selection was positive for the year due to the Russell indices outperforming the S&P indices within the U.S. mid and small cap equity asset classes. Active management within the U.S. equity asset class detracted for the year as the Blue Chip, LargeCap Growth I, Equity Income, LargeCap Value III, MidCap, and Small-MidCap Dividend Income underlying investment options underperformed their respective indices. All fixed income managers, along with International SmallCap, Real Estate Securities, and Diversified Real Asset also underperformed. However, Global Emerging Markets and International Equity outperformed their respective indices for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i127be3aab305f8cb3b3a3d44.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 1 Shares at net asset value $24,454** | **S&P 1500 Index $38,601** | **S&P Target Date 2040 Index $26,085** |
| **12/15** | 10000 | 10000 | 10000 |
| **1/16** | 9483 | 9495 | 9583 |
| **2/16** | 9401 | 9496 | 9538 |
| **3/16** | 9963 | 10157 | 10132 |
| **4/16** | 10052 | 10205 | 10219 |
| **5/16** | 10133 | 10391 | 10311 |
| **6/16** | 10096 | 10420 | 10335 |
| **7/16** | 10436 | 10814 | 10670 |
| **8/16** | 10452 | 10836 | 10699 |
| **9/16** | 10491 | 10835 | 10735 |
| **10/16** | 10280 | 10621 | 10533 |
| **11/16** | 10413 | 11077 | 10717 |
| **12/16** | 10545 | 11303 | 10922 |
| **1/17** | 10803 | 11507 | 11126 |
| **2/17** | 11052 | 11943 | 11384 |
| **3/17** | 11333 | 12072 | 11617 |
| **4/17** | 11512 | 12212 | 11783 |
| **5/17** | 11583 | 12305 | 11862 |
| **6/17** | 11848 | 12544 | 12101 |
| **7/17** | 11913 | 12555 | 12106 |
| **8/17** | 12152 | 12852 | 12361 |
| **9/17** | 12383 | 13145 | 12577 |
| **10/17** | 12606 | 13556 | 12837 |
| **12/17** | 12726 | 13691 | 12983 |
| **1/18** | 13323 | 14434 | 13503 |
| **2/18** | 12797 | 13894 | 13015 |
| **3/18** | 12686 | 13592 | 12861 |
| **4/18** | 12749 | 13641 | 12943 |
| **5/18** | 12877 | 14003 | 13100 |
| **6/18** | 12837 | 14089 | 13071 |
| **7/18** | 13148 | 14592 | 13383 |
| **8/18** | 13323 | 15074 | 13557 |
| **9/18** | 13333 | 15125 | 13558 |
| **10/18** | 12400 | 14047 | 12655 |
| **11/18** | 12551 | 14341 | 12851 |
| **12/18** | 11727 | 13012 | 12021 |
| **1/19** | 12610 | 14085 | 12875 |
| **2/19** | 12955 | 14551 | 13194 |
| **3/19** | 13106 | 14787 | 13323 |
| **4/19** | 13510 | 15385 | 13708 |
| **5/19** | 12896 | 14381 | 13027 |
| **6/19** | 13611 | 15402 | 13758 |
| **7/19** | 13687 | 15620 | 13817 |
| **8/19** | 13552 | 15334 | 13581 |
| **9/19** | 13717 | 15638 | 13840 |
| **10/19** | 13961 | 15965 | 14134 |
| **11/19** | 14277 | 16536 | 14432 |
| **12/19** | 14628 | 17033 | 14831 |
| **1/20** | 14547 | 16981 | 14690 |
| **2/20** | 13699 | 15564 | 13683 |
| **3/20** | 11887 | 13529 | 11977 |
| **4/20** | 13086 | 15272 | 13123 |
| **5/20** | 13726 | 16020 | 13652 |
| **6/20** | 14033 | 16338 | 13973 |
| **7/20** | 14718 | 17244 | 14563 |
| **8/20** | 15332 | 18435 | 15229 |
| **9/20** | 15004 | 17737 | 14831 |
| **10/20** | 14778 | 17333 | 14601 |
| **11/20** | 16290 | 19292 | 16152 |
| **12/20** | 16985 | 20085 | 16813 |
| **1/21** | 16825 | 19950 | 16780 |
| **2/21** | 17332 | 20574 | 17200 |
| **3/21** | 17698 | 21473 | 17642 |
| **4/21** | 18412 | 22589 | 18293 |
| **5/21** | 18618 | 22748 | 18526 |
| **6/21** | 18797 | 23220 | 18663 |
| **7/21** | 18994 | 23715 | 18787 |
| **8/21** | 19332 | 24415 | 19175 |
| **9/21** | 18620 | 23303 | 18533 |
| **10/21** | 19415 | 24899 | 19293 |
| **11/21** | 18885 | 24684 | 18882 |
| **12/21** | 19582 | 25799 | 19595 |
| **1/22** | 18600 | 24421 | 18668 |
| **2/22** | 18070 | 23771 | 18356 |
| **3/22** | 18208 | 24602 | 18609 |
| **4/22** | 16872 | 22484 | 17329 |
| **5/22** | 16970 | 22542 | 17402 |
| **6/22** | 16842 | 22590 | 17167 |
| **7/22** | 16184 | 21679 | 16560 |
| **8/22** | 15653 | 21321 | 15995 |
| **9/22** | 16697 | 22511 | 17082 |
| **12/22** | 16038 | 21212 | 16547 |
| **1/23** | 17148 | 22598 | 17625 |
| **2/23** | 16654 | 22062 | 17194 |
| **3/23** | 16939 | 22730 | 17552 |
| **4/23** | 17170 | 23031 | 17768 |
| **5/23** | 16906 | 23072 | 17509 |
| **6/23** | 17775 | 24637 | 18337 |
| **7/23** | 18236 | 25455 | 18875 |
| **8/23** | 17841 | 25015 | 18452 |
| **9/23** | 17106 | 23809 | 17743 |
| **10/23** | 16649 | 23242 | 17240 |
| **11/23** | 18032 | 25352 | 18623 |
| **12/23** | 18969 | 26613 | 19552 |
| **1/24** | 18980 | 26969 | 19578 |
| **2/24** | 19608 | 28405 | 20185 |
| **3/24** | 20191 | 29357 | 20730 |
| **4/24** | 19471 | 28114 | 20079 |
| **5/24** | 20134 | 29500 | 20814 |
| **6/24** | 20283 | 30432 | 21097 |
| **7/24** | 20774 | 30947 | 21593 |
| **8/24** | 21220 | 31623 | 22039 |
| **9/24** | 21549 | 32271 | 22467 |
| **10/24** | 21101 | 31968 | 21945 |
| **11/24** | 21914 | 33938 | 22629 |
| **12/24** | 21160 | 32988 | 22069 |
| **1/25** | 21843 | 33927 | 22635 |
| **2/25** | 21831 | 33390 | 22612 |
| **3/25** | 21113 | 31507 | 21997 |
| **4/25** | 21113 | 31240 | 22148 |
| **5/25** | 21984 | 33184 | 23076 |
| **6/25** | 22797 | 34837 | 23899 |
| **7/25** | 22973 | 35598 | 24109 |
| **8/25** | 23503 | 36385 | 24730 |
| **9/25** | 23963 | 37630 | 25378 |
| **10/25** | 24151 | 38428 | 25752 |
| **11/25** | 24378 | 38578 | 25877 |
| **12/25** | 24454 | 38601 | 26085 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 15.57% | 7.56% | 9.35% |
| S&P 1500 Index | 17.02% | 13.96% | 14.46% |
| S&P Target Date 2040 Index | 18.20% | 9.18% | 10.06% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The S&P 1500 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The S&P Target Date 2040 Index is included as an additional index for the Fund as it shows how the Fund's performance compares with the returns of an index of funds with similar investment objectives. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$229,305

* Total Number of Portfolio Holdings15

* Portfolio Turnover Rate 46.7%

* Total Advisory Fees Paid (amount in thousands)$0

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 100.00% |
| Other Assets and Liabilities | 0.00% |
| Total Net Assets | 100.00% |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Domestic Equity Funds | 52.63% |
| International Equity Funds | 25.19% |
| Fixed Income Funds | 22.18% |
| Other Assets and Liabilities | 0.00% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC25AR1-0

# Class 1

# Principal LifeTime 2050 Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Principal LifeTime 2050 Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $2 | 0.02% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year in the Fund's name. It is a fund of funds and invests in funds of Principal Exchange-Traded Funds, Principal Funds, Inc., and Principal Variable Contracts Funds, Inc. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities. The asset class diversification of the Fund is designed to moderate overall price volatility. Asset class positioning was a detractor from investment performance on average due to an underweight to non-U.S. equity relative to the S&P Target Date Indices. An overweight to short-term bonds in the near-dated vintages also detracted. However, an overweight to equity and an underweight to fixed income was a positive contributor for the year. Style selection was positive for the year due to the Russell indices outperforming the S&P indices within the U.S. mid and small cap equity asset classes. Active management within the U.S. equity asset class detracted for the year as the Blue Chip, LargeCap Growth I, Equity Income, LargeCap Value III, MidCap, and Small-MidCap Dividend Income underlying investment options underperformed their respective indices. All fixed income managers, along with International SmallCap, Real Estate Securities, and Diversified Real Asset also underperformed. However, Global Emerging Markets and International Equity outperformed their respective indices for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i1435beb252a81d3871a10070.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 1 Shares at net asset value $26,449** | **S&P 1500 Index $38,601** | **S&P Target Date 2050 Index $27,853** |
| **12/15** | 10000 | 10000 | 10000 |
| **1/16** | 9441 | 9495 | 9538 |
| **2/16** | 9350 | 9496 | 9482 |
| **3/16** | 9939 | 10157 | 10117 |
| **4/16** | 10031 | 10205 | 10206 |
| **5/16** | 10122 | 10391 | 10305 |
| **6/16** | 10061 | 10420 | 10313 |
| **7/16** | 10421 | 10814 | 10675 |
| **8/16** | 10437 | 10836 | 10705 |
| **9/16** | 10477 | 10835 | 10744 |
| **10/16** | 10259 | 10621 | 10531 |
| **11/16** | 10412 | 11077 | 10753 |
| **12/16** | 10558 | 11303 | 10974 |
| **1/17** | 10833 | 11507 | 11196 |
| **2/17** | 11099 | 11943 | 11475 |
| **3/17** | 11390 | 12072 | 11726 |
| **4/17** | 11585 | 12212 | 11903 |
| **5/17** | 11657 | 12305 | 11988 |
| **6/17** | 11948 | 12544 | 12242 |
| **7/17** | 12012 | 12555 | 12244 |
| **8/17** | 12267 | 12852 | 12519 |
| **9/17** | 12515 | 13145 | 12752 |
| **10/17** | 12763 | 13556 | 13033 |
| **12/17** | 12895 | 13691 | 13188 |
| **1/18** | 13555 | 14434 | 13756 |
| **2/18** | 12994 | 13894 | 13234 |
| **3/18** | 12862 | 13592 | 13064 |
| **4/18** | 12944 | 13641 | 13157 |
| **5/18** | 13068 | 14003 | 13323 |
| **6/18** | 13027 | 14089 | 13289 |
| **7/18** | 13374 | 14592 | 13622 |
| **8/18** | 13555 | 15074 | 13802 |
| **9/18** | 13569 | 15125 | 13804 |
| **10/18** | 12547 | 14047 | 12831 |
| **11/18** | 12714 | 14341 | 13041 |
| **12/18** | 11780 | 13012 | 12140 |
| **1/19** | 12741 | 14085 | 13045 |
| **2/19** | 13120 | 14551 | 13386 |
| **3/19** | 13269 | 14787 | 13510 |
| **4/19** | 13710 | 15385 | 13922 |
| **5/19** | 13005 | 14381 | 13178 |
| **6/19** | 13798 | 15402 | 13958 |
| **7/19** | 13869 | 15620 | 14017 |
| **8/19** | 13692 | 15334 | 13740 |
| **9/19** | 13886 | 15638 | 14024 |
| **10/19** | 14144 | 15965 | 14341 |
| **11/19** | 14507 | 16536 | 14661 |
| **12/19** | 14889 | 17033 | 15097 |
| **1/20** | 14765 | 16981 | 14925 |
| **2/20** | 13791 | 15564 | 13820 |
| **3/20** | 11795 | 13529 | 11993 |
| **4/20** | 13094 | 15272 | 13200 |
| **5/20** | 13781 | 16020 | 13760 |
| **6/20** | 14115 | 16338 | 14105 |
| **7/20** | 14841 | 17244 | 14725 |
| **8/20** | 15538 | 18435 | 15460 |
| **9/20** | 15165 | 17737 | 15026 |
| **10/20** | 14917 | 17333 | 14779 |
| **11/20** | 16597 | 19292 | 16463 |
| **12/20** | 17373 | 20085 | 17190 |
| **1/21** | 17204 | 19950 | 17163 |
| **2/21** | 17800 | 20574 | 17645 |
| **3/21** | 18238 | 21473 | 18148 |
| **4/21** | 19024 | 22589 | 18859 |
| **5/21** | 19252 | 22748 | 19116 |
| **6/21** | 19441 | 23220 | 19252 |
| **7/21** | 19640 | 23715 | 19374 |
| **8/21** | 20028 | 24415 | 19808 |
| **9/21** | 19231 | 23303 | 19098 |
| **10/21** | 20143 | 24899 | 19950 |
| **11/21** | 19521 | 24684 | 19485 |
| **12/21** | 20330 | 25799 | 20283 |
| **1/22** | 19231 | 24421 | 19279 |
| **2/22** | 18639 | 23771 | 18947 |
| **3/22** | 18857 | 24602 | 19265 |
| **4/22** | 17364 | 22484 | 17882 |
| **5/22** | 17478 | 22542 | 17955 |
| **6/22** | 17322 | 22590 | 17664 |
| **7/22** | 16606 | 21679 | 17019 |
| **8/22** | 16117 | 21321 | 16458 |
| **9/22** | 17275 | 22511 | 17644 |
| **12/22** | 16507 | 21212 | 17043 |
| **1/23** | 17737 | 22598 | 18223 |
| **2/23** | 17205 | 22062 | 17773 |
| **3/23** | 17500 | 22730 | 18134 |
| **4/23** | 17760 | 23031 | 18369 |
| **5/23** | 17476 | 23072 | 18085 |
| **6/23** | 18529 | 24637 | 19051 |
| **7/23** | 19085 | 25455 | 19683 |
| **8/23** | 18623 | 25015 | 19192 |
| **9/23** | 17799 | 23809 | 18411 |
| **10/23** | 17293 | 23242 | 17847 |
| **11/23** | 18847 | 25352 | 19371 |
| **12/23** | 19871 | 26613 | 20381 |
| **1/24** | 19895 | 26969 | 20408 |
| **2/24** | 20709 | 28405 | 21150 |
| **3/24** | 21400 | 29357 | 21770 |
| **4/24** | 20586 | 28114 | 21058 |
| **5/24** | 21351 | 29500 | 21883 |
| **6/24** | 21511 | 30432 | 22195 |
| **7/24** | 22029 | 30947 | 22730 |
| **8/24** | 22535 | 31623 | 23216 |
| **9/24** | 22892 | 32271 | 23692 |
| **10/24** | 22409 | 31968 | 23135 |
| **11/24** | 23400 | 33938 | 23929 |
| **12/24** | 22511 | 32988 | 23296 |
| **1/25** | 23362 | 33927 | 23946 |
| **2/25** | 23260 | 33390 | 23857 |
| **3/25** | 22333 | 31507 | 23120 |
| **4/25** | 22333 | 31240 | 23276 |
| **5/25** | 23476 | 33184 | 24381 |
| **6/25** | 24441 | 34837 | 25324 |
| **7/25** | 24682 | 35598 | 25587 |
| **8/25** | 25304 | 36385 | 26298 |
| **9/25** | 25860 | 37630 | 27043 |
| **10/25** | 26079 | 38428 | 27472 |
| **11/25** | 26340 | 38578 | 27606 |
| **12/25** | 26449 | 38601 | 27853 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 17.50% | 8.77% | 10.22% |
| S&P 1500 Index | 17.02% | 13.96% | 14.46% |
| S&P Target Date 2050 Index | 19.56% | 10.13% | 10.79% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The S&P 1500 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The S&P Target Date 2050 Index is included as an additional index for the Fund as it shows how the Fund's performance compares with the returns of an index of funds with similar investment objectives. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$100,536

* Total Number of Portfolio Holdings15

* Portfolio Turnover Rate 57.6%

* Total Advisory Fees Paid (amount in thousands)$0

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 100.00% |
| Other Assets and Liabilities | 0.00% |
| Total Net Assets | 100.00% |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Domestic Equity Funds | 63.88% |
| International Equity Funds | 30.83% |
| Fixed Income Funds | 5.29% |
| Other Assets and Liabilities | 0.00% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC26AR1-0

# Class 1

# Principal LifeTime 2060 Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Principal LifeTime 2060 Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $4 | 0.04% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks a total return consisting of long-term growth of capital and current income. The Fund operates as a "target date fund" that invests according to an asset allocation strategy designed for investors having a retirement investment goal close to the year in the Fund's name. It is a fund of funds and invests in funds of Principal Exchange-Traded Funds, Principal Funds, Inc., and Principal Variable Contracts Funds, Inc. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities. The asset class diversification of the Fund is designed to moderate overall price volatility. Asset class positioning was a detractor from investment performance on average due to an underweight to non-U.S. equity relative to the S&P Target Date Indices. An overweight to short-term bonds in the near-dated vintages also detracted. However, an overweight to equity and an underweight to fixed income was a positive contributor for the year. Style selection was positive for the year due to the Russell indices outperforming the S&P indices within the U.S. mid and small cap equity asset classes. Active management within the U.S. equity asset class detracted for the year as the Blue Chip, LargeCap Growth I, Equity Income, LargeCap Value III, MidCap, and Small-MidCap Dividend Income underlying investment options underperformed their respective indices. All fixed income managers, along with International SmallCap, Real Estate Securities, and Diversified Real Asset also underperformed. However, Global Emerging Markets and International Equity outperformed their respective indices for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i36a478b9421723560923d514.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 1 Shares at net asset value $26,785** | **S&P 1500 Index $38,601** | **S&P Target Date 2060 Index $28,344** |
| **12/15** | 10000 | 10000 | 10000 |
| **1/16** | 9421 | 9495 | 9516 |
| **2/16** | 9328 | 9496 | 9454 |
| **3/16** | 9940 | 10157 | 10108 |
| **4/16** | 10026 | 10205 | 10201 |
| **5/16** | 10111 | 10391 | 10300 |
| **6/16** | 10043 | 10420 | 10299 |
| **7/16** | 10409 | 10814 | 10674 |
| **8/16** | 10428 | 10836 | 10708 |
| **9/16** | 10472 | 10835 | 10749 |
| **10/16** | 10242 | 10621 | 10532 |
| **11/16** | 10410 | 11077 | 10779 |
| **12/16** | 10552 | 11303 | 11007 |
| **1/17** | 10837 | 11507 | 11241 |
| **2/17** | 11112 | 11943 | 11529 |
| **3/17** | 11414 | 12072 | 11790 |
| **4/17** | 11609 | 12212 | 11973 |
| **5/17** | 11689 | 12305 | 12057 |
| **6/17** | 11974 | 12544 | 12316 |
| **7/17** | 12042 | 12555 | 12320 |
| **8/17** | 12312 | 12852 | 12602 |
| **9/17** | 12565 | 13145 | 12843 |
| **10/17** | 12817 | 13556 | 13133 |
| **12/17** | 12952 | 13691 | 13291 |
| **1/18** | 13636 | 14434 | 13885 |
| **2/18** | 13060 | 13894 | 13353 |
| **3/18** | 12925 | 13592 | 13170 |
| **4/18** | 13006 | 13641 | 13265 |
| **5/18** | 13132 | 14003 | 13435 |
| **6/18** | 13087 | 14089 | 13404 |
| **7/18** | 13438 | 14592 | 13745 |
| **8/18** | 13627 | 15074 | 13933 |
| **9/18** | 13643 | 15125 | 13937 |
| **10/18** | 12575 | 14047 | 12946 |
| **11/18** | 12746 | 14341 | 13160 |
| **12/18** | 11754 | 13012 | 12234 |
| **1/19** | 12756 | 14085 | 13156 |
| **2/19** | 13147 | 14551 | 13504 |
| **3/19** | 13290 | 14787 | 13631 |
| **4/19** | 13748 | 15385 | 14053 |
| **5/19** | 13004 | 14381 | 13290 |
| **6/19** | 13815 | 15402 | 14090 |
| **7/19** | 13891 | 15620 | 14151 |
| **8/19** | 13691 | 15334 | 13863 |
| **9/19** | 13886 | 15638 | 14154 |
| **10/19** | 14172 | 15965 | 14480 |
| **11/19** | 14548 | 16536 | 14811 |
| **12/19** | 14956 | 17033 | 15260 |
| **1/20** | 14803 | 16981 | 15083 |
| **2/20** | 13764 | 15564 | 13943 |
| **3/20** | 11686 | 13529 | 12077 |
| **4/20** | 13000 | 15272 | 13314 |
| **5/20** | 13713 | 16020 | 13887 |
| **6/20** | 14049 | 16338 | 14242 |
| **7/20** | 14783 | 17244 | 14873 |
| **8/20** | 15516 | 18435 | 15626 |
| **9/20** | 15130 | 17737 | 15184 |
| **10/20** | 14877 | 17333 | 14930 |
| **11/20** | 16621 | 19292 | 16650 |
| **12/20** | 17435 | 20085 | 17394 |
| **1/21** | 17256 | 19950 | 17368 |
| **2/21** | 17900 | 20574 | 17859 |
| **3/21** | 18366 | 21473 | 18370 |
| **4/21** | 19190 | 22589 | 19094 |
| **5/21** | 19434 | 22748 | 19361 |
| **6/21** | 19624 | 23220 | 19495 |
| **7/21** | 19825 | 23715 | 19613 |
| **8/21** | 20237 | 24415 | 20055 |
| **9/21** | 19397 | 23303 | 19334 |
| **10/21** | 20359 | 24899 | 20198 |
| **11/21** | 19747 | 24684 | 19719 |
| **12/21** | 20567 | 25799 | 20534 |
| **1/22** | 19463 | 24421 | 19511 |
| **2/22** | 18861 | 23771 | 19178 |
| **3/22** | 19091 | 24602 | 19502 |
| **4/22** | 17582 | 22484 | 18097 |
| **5/22** | 17702 | 22542 | 18172 |
| **6/22** | 17538 | 22590 | 17868 |
| **7/22** | 16806 | 21679 | 17214 |
| **8/22** | 16310 | 21321 | 16651 |
| **9/22** | 17493 | 22511 | 17859 |
| **12/22** | 16704 | 21212 | 17247 |
| **1/23** | 17948 | 22598 | 18446 |
| **2/23** | 17419 | 22062 | 17992 |
| **3/23** | 17714 | 22730 | 18360 |
| **4/23** | 17973 | 23031 | 18601 |
| **5/23** | 17677 | 23072 | 18316 |
| **6/23** | 18749 | 24637 | 19301 |
| **7/23** | 19303 | 25455 | 19947 |
| **8/23** | 18835 | 25015 | 19444 |
| **9/23** | 18002 | 23809 | 18651 |
| **10/23** | 17502 | 23242 | 18074 |
| **11/23** | 19066 | 25352 | 19622 |
| **12/23** | 20092 | 26613 | 20651 |
| **1/24** | 20117 | 26969 | 20674 |
| **2/24** | 20938 | 28405 | 21431 |
| **3/24** | 21643 | 29357 | 22065 |
| **4/24** | 20810 | 28114 | 21340 |
| **5/24** | 21592 | 29500 | 22178 |
| **6/24** | 21746 | 30432 | 22495 |
| **7/24** | 22271 | 30947 | 23049 |
| **8/24** | 22784 | 31623 | 23544 |
| **9/24** | 23143 | 32271 | 24041 |
| **10/24** | 22655 | 31968 | 23467 |
| **11/24** | 23669 | 33938 | 24294 |
| **12/24** | 22761 | 32988 | 23632 |
| **1/25** | 23630 | 33927 | 24312 |
| **2/25** | 23511 | 33390 | 24197 |
| **3/25** | 22576 | 31507 | 23423 |
| **4/25** | 22576 | 31240 | 23581 |
| **5/25** | 23735 | 33184 | 24745 |
| **6/25** | 24736 | 34837 | 25725 |
| **7/25** | 24973 | 35598 | 26005 |
| **8/25** | 25619 | 36385 | 26735 |
| **9/25** | 26181 | 37630 | 27512 |
| **10/25** | 26406 | 38428 | 27957 |
| **11/25** | 26673 | 38578 | 28088 |
| **12/25** | 26785 | 38601 | 28344 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 17.68% | 8.97% | 10.35% |
| S&P 1500 Index | 17.02% | 13.96% | 14.46% |
| S&P Target Date 2060 Index | 19.94% | 10.26% | 10.98% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The S&P 1500 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The S&P Target Date 2060 Index is included as an additional index for the Fund as it shows how the Fund's performance compares with the returns of an index of funds with similar investment objectives. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$40,419

* Total Number of Portfolio Holdings15

* Portfolio Turnover Rate 60.6%

* Total Advisory Fees Paid (amount in thousands)$0

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 100.01% |
| Other Assets and Liabilities | (0.01)% |
| Total Net Assets | 100.00% |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Domestic Equity Funds | 65.47% |
| International Equity Funds | 31.49% |
| Fixed Income Funds | 3.05% |
| Other Assets and Liabilities | (0.01)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC41AR1-0

# Class 1

# Principal LifeTime Strategic Income Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Principal LifeTime Strategic Income Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $3 | 0.03% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks current income, and as a secondary objective, capital appreciation. The Fund's asset allocation is designed for investors who are approximately 10 years beyond the normal retirement age of 65. The Fund is a fund of funds and invests in funds of Principal Exchange-Traded Funds, Principal Funds, Inc., and Principal Variable Contracts Funds, Inc. Its underlying funds consist of domestic and foreign equity funds, fixed-income funds, real asset funds, and other funds that aim to offer diversification beyond traditional equity and fixed-income securities. The diversification of the Fund is designed to moderate overall price volatility. Asset class positioning was a detractor from investment performance due to an underweight to non-U.S. equity relative to the S&P Target Date Indices. An overweight to short-term bonds in the near-dated vintages also detracted. However, an overweight to equity and an underweight to fixed income was a positive contributor for the year. Style selection was positive for the year due to the Russell indices outperforming the S&P indices within the U.S. mid and small cap equity asset classes. Active management within the U.S. equity asset class detracted for the year as the Blue Chip, LargeCap Growth I, Equity Income, LargeCap Value III, MidCap, and Small-MidCap Dividend Income underlying investment options underperformed their respective indices. All fixed income managers, along with International SmallCap, Real Estate Securities, and Diversified Real Asset also underperformed. However, Global Emerging Markets and International Equity outperformed their respective indices for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i0800f45689741a403a080bde.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 1 Shares at net asset value $16,265** | **Bloomberg US Aggregate Index $12,199** | **S&P Target Date Retirement Income Index $16,789** |
| **12/15** | 10000 | 10000 | 10000 |
| **1/16** | 9919 | 10138 | 9910 |
| **2/16** | 9937 | 10210 | 9947 |
| **3/16** | 10188 | 10303 | 10218 |
| **4/16** | 10269 | 10343 | 10271 |
| **5/16** | 10287 | 10345 | 10301 |
| **6/16** | 10386 | 10531 | 10408 |
| **7/16** | 10547 | 10598 | 10554 |
| **8/16** | 10560 | 10586 | 10557 |
| **9/16** | 10588 | 10580 | 10581 |
| **10/16** | 10514 | 10499 | 10475 |
| **11/16** | 10413 | 10250 | 10418 |
| **12/16** | 10477 | 10265 | 10501 |
| **1/17** | 10597 | 10285 | 10585 |
| **2/17** | 10725 | 10354 | 10707 |
| **3/17** | 10845 | 10428 | 10821 |
| **4/17** | 10955 | 10509 | 10906 |
| **5/17** | 10955 | 10498 | 10924 |
| **6/17** | 11075 | 10543 | 11032 |
| **7/17** | 11141 | 10638 | 11078 |
| **8/17** | 11188 | 10587 | 11149 |
| **9/17** | 11273 | 10593 | 11232 |
| **10/17** | 11320 | 10580 | 11320 |
| **12/17** | 11395 | 10628 | 11397 |
| **1/18** | 11527 | 10506 | 11534 |
| **2/18** | 11292 | 10406 | 11333 |
| **3/18** | 11282 | 10473 | 11307 |
| **4/18** | 11292 | 10395 | 11308 |
| **5/18** | 11329 | 10469 | 11389 |
| **6/18** | 11310 | 10456 | 11385 |
| **7/18** | 11433 | 10459 | 11496 |
| **8/18** | 11480 | 10526 | 11587 |
| **9/18** | 11474 | 10458 | 11562 |
| **10/18** | 11170 | 10376 | 11224 |
| **11/18** | 11219 | 10438 | 11317 |
| **12/18** | 11053 | 10629 | 11108 |
| **1/19** | 11395 | 10742 | 11471 |
| **2/19** | 11493 | 10736 | 11584 |
| **3/19** | 11659 | 10942 | 11727 |
| **4/19** | 11816 | 10945 | 11867 |
| **5/19** | 11738 | 11139 | 11725 |
| **6/19** | 12011 | 11279 | 12057 |
| **7/19** | 12051 | 11304 | 12100 |
| **8/19** | 12148 | 11597 | 12156 |
| **9/19** | 12169 | 11535 | 12216 |
| **10/19** | 12242 | 11570 | 12335 |
| **11/19** | 12315 | 11564 | 12449 |
| **12/19** | 12430 | 11556 | 12589 |
| **1/20** | 12565 | 11778 | 12659 |
| **2/20** | 12450 | 11990 | 12400 |
| **3/20** | 11700 | 11920 | 11747 |
| **4/20** | 12263 | 12132 | 12313 |
| **5/20** | 12523 | 12188 | 12553 |
| **6/20** | 12690 | 12265 | 12708 |
| **7/20** | 13024 | 12448 | 13009 |
| **8/20** | 13180 | 12348 | 13172 |
| **9/20** | 13069 | 12341 | 13055 |
| **10/20** | 12984 | 12286 | 12957 |
| **11/20** | 13496 | 12406 | 13490 |
| **12/20** | 13710 | 12423 | 13698 |
| **1/21** | 13635 | 12334 | 13657 |
| **2/21** | 13667 | 12156 | 13664 |
| **3/21** | 13699 | 12005 | 13702 |
| **4/21** | 13945 | 12099 | 13933 |
| **5/21** | 14030 | 12139 | 14020 |
| **6/21** | 14126 | 12224 | 14122 |
| **7/21** | 14244 | 12361 | 14240 |
| **8/21** | 14308 | 12337 | 14335 |
| **9/21** | 14104 | 12230 | 14118 |
| **10/21** | 14286 | 12227 | 14316 |
| **11/21** | 14093 | 12263 | 14227 |
| **12/21** | 14331 | 12232 | 14398 |
| **1/22** | 13911 | 11968 | 14013 |
| **2/22** | 13684 | 11835 | 13863 |
| **3/22** | 13605 | 11506 | 13747 |
| **4/22** | 12980 | 11069 | 13185 |
| **5/22** | 13037 | 11141 | 13231 |
| **6/22** | 12991 | 11234 | 13192 |
| **7/22** | 12639 | 10917 | 12886 |
| **8/22** | 12172 | 10310 | 12446 |
| **9/22** | 12689 | 10689 | 12947 |
| **12/22** | 12455 | 10641 | 12789 |
| **1/23** | 12985 | 10968 | 13266 |
| **2/23** | 12701 | 10684 | 13029 |
| **3/23** | 12935 | 10956 | 13282 |
| **4/23** | 13058 | 11022 | 13385 |
| **5/23** | 12898 | 10902 | 13257 |
| **6/23** | 13169 | 10863 | 13493 |
| **7/23** | 13341 | 10856 | 13661 |
| **8/23** | 13181 | 10786 | 13497 |
| **9/23** | 12836 | 10512 | 13141 |
| **10/23** | 12610 | 10346 | 12907 |
| **11/23** | 13298 | 10815 | 13605 |
| **12/23** | 13799 | 11229 | 14113 |
| **1/24** | 13824 | 11198 | 14129 |
| **2/24** | 13949 | 11040 | 14218 |
| **3/24** | 14199 | 11142 | 14440 |
| **4/24** | 13861 | 10860 | 14114 |
| **5/24** | 14174 | 11044 | 14445 |
| **6/24** | 14274 | 11149 | 14603 |
| **7/24** | 14562 | 11409 | 14888 |
| **8/24** | 14800 | 11573 | 15123 |
| **9/24** | 14996 | 11728 | 15357 |
| **10/24** | 14725 | 11437 | 15042 |
| **11/24** | 15047 | 11558 | 15289 |
| **12/24** | 14725 | 11369 | 15036 |
| **1/25** | 14983 | 11430 | 15253 |
| **2/25** | 15111 | 11681 | 15422 |
| **3/25** | 14893 | 11685 | 15278 |
| **4/25** | 14918 | 11731 | 15363 |
| **5/25** | 15176 | 11647 | 15587 |
| **6/25** | 15536 | 11826 | 15934 |
| **7/25** | 15588 | 11795 | 15987 |
| **8/25** | 15845 | 11936 | 16250 |
| **9/25** | 16047 | 12067 | 16512 |
| **10/25** | 16142 | 12142 | 16672 |
| **11/25** | 16251 | 12217 | 16743 |
| **12/25** | 16265 | 12199 | 16789 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 10.45% | 3.48% | 4.98% |
| Bloomberg US Aggregate Index | 7.30% | -0.36% | 2.01% |
| S&P Target Date Retirement Income Index | 11.66% | 4.15% | 5.32% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Bloomberg US Aggregate Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The S&P Target Date Retirement Income Index is included as an additional index for the Fund as it shows how the Fund's performance compares with the returns of an index of funds with similar investment objectives. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$54,550

* Total Number of Portfolio Holdings18

* Portfolio Turnover Rate 38.6%

* Total Advisory Fees Paid (amount in thousands)$0

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 100.00% |
| Other Assets and Liabilities | 0.00% |
| Total Net Assets | 100.00% |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Fixed Income Funds | 63.38% |
| Domestic Equity Funds | 24.69% |
| International Equity Funds | 11.51% |
| Specialty Funds | 0.42% |
| Other Assets and Liabilities | 0.00% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC27AR1-0

# Class 1

# Real Estate Securities Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Real Estate Securities Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $78 | 0.78% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to generate a total return. Under normal circumstances, the Fund invests at least 80% of its net assets in equity securities of companies principally engaged in the real estate industry. Real estate companies include real estate investment trusts ("REITs") and companies with substantial real estate holdings such as paper, lumber, hotel, and entertainment companies, as well as those whose products and services relate to the real estate industry, including building supply manufacturers, mortgage lenders, and mortgage servicing companies. The Fund's investments underperformed the FTSE NAREIT All Equity REITs Index during the year. Stock selection within the industrial sector was a top detractor, due to an underweight of a large stock that reported some green shoots of a recovery and an overweight to a cold storage company which underperformed on signs of weak demand. An overweight to the single family rental sector detracted with companies coming under pressure as the prospect of rate cuts could improve affordability of purchasing as opposed to renting. Net lease selection was also detractive. An overweight to U.S. senior housing stocks remained the key contributor with these companies demonstrating continued strong earnings growth and guidance upgrades on firming occupancy, improving pricing power and accretive acquisitions. An underweight to a data center exposed stock also contributed, as it lagged on broader concerns over artificial intelligence capital expenditure sustainability.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i5404796efa058c6f91c4ee66.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 1 Shares at net asset value $17,811** | **Russell 3000 Index $38,012** | **FTSE NAREIT All Equity REIT Index $17,522** |
| **12/15** | 10000 | 10000 | 10000 |
| **1/16** | 9599 | 9436 | 9648 |
| **2/16** | 9559 | 9433 | 9607 |
| **3/16** | 10536 | 10097 | 10584 |
| **4/16** | 10239 | 10159 | 10392 |
| **5/16** | 10450 | 10341 | 10632 |
| **6/16** | 11135 | 10362 | 11368 |
| **7/16** | 11559 | 10774 | 11810 |
| **8/16** | 11161 | 10801 | 11400 |
| **9/16** | 10977 | 10818 | 11231 |
| **10/16** | 10371 | 10584 | 10657 |
| **11/16** | 10122 | 11058 | 10399 |
| **12/16** | 10585 | 11274 | 10863 |
| **1/17** | 10525 | 11486 | 10881 |
| **2/17** | 10957 | 11913 | 11318 |
| **3/17** | 10768 | 12047 | 11188 |
| **4/17** | 10803 | 12171 | 11174 |
| **5/17** | 11002 | 12280 | 11393 |
| **6/17** | 11116 | 12512 | 11537 |
| **7/17** | 11260 | 12536 | 11611 |
| **8/17** | 11148 | 12842 | 11519 |
| **9/17** | 11210 | 13122 | 11534 |
| **10/17** | 11524 | 13521 | 11840 |
| **12/17** | 11558 | 13656 | 11805 |
| **1/18** | 11238 | 14375 | 11457 |
| **2/18** | 10537 | 13846 | 10624 |
| **3/18** | 10958 | 13568 | 11019 |
| **4/18** | 11042 | 13619 | 11076 |
| **5/18** | 11266 | 14004 | 11475 |
| **6/18** | 11703 | 14095 | 11955 |
| **7/18** | 11759 | 14563 | 12028 |
| **8/18** | 12062 | 15074 | 12362 |
| **9/18** | 11852 | 15099 | 12059 |
| **10/18** | 11486 | 13988 | 11740 |
| **11/18** | 12013 | 14268 | 12298 |
| **12/18** | 11070 | 12940 | 11328 |
| **1/19** | 12347 | 14051 | 12639 |
| **2/19** | 12558 | 14545 | 12708 |
| **3/19** | 13011 | 14757 | 13273 |
| **4/19** | 13085 | 15346 | 13242 |
| **5/19** | 13234 | 14353 | 13328 |
| **6/19** | 13407 | 15361 | 13511 |
| **7/19** | 13606 | 15590 | 13719 |
| **8/19** | 14164 | 15272 | 14287 |
| **9/19** | 14457 | 15540 | 14555 |
| **10/19** | 14802 | 15875 | 14713 |
| **11/19** | 14700 | 16478 | 14486 |
| **12/19** | 14531 | 16954 | 14575 |
| **1/20** | 14829 | 16935 | 14759 |
| **2/20** | 13659 | 15549 | 13722 |
| **3/20** | 11192 | 13410 | 11158 |
| **4/20** | 12091 | 15187 | 12143 |
| **5/20** | 12267 | 15999 | 12351 |
| **6/20** | 12524 | 16364 | 12636 |
| **7/20** | 13254 | 17294 | 13119 |
| **8/20** | 13274 | 18546 | 13136 |
| **9/20** | 12859 | 17871 | 12787 |
| **10/20** | 12507 | 17485 | 12358 |
| **11/20** | 13645 | 19613 | 13497 |
| **12/20** | 14034 | 20495 | 13828 |
| **1/21** | 13968 | 20404 | 13818 |
| **2/21** | 14299 | 21042 | 14194 |
| **3/21** | 15040 | 21796 | 14979 |
| **4/21** | 16215 | 22919 | 16195 |
| **5/21** | 16392 | 23024 | 16328 |
| **6/21** | 16884 | 23592 | 16780 |
| **7/21** | 17824 | 23991 | 17513 |
| **8/21** | 18132 | 24675 | 17878 |
| **9/21** | 17145 | 23568 | 16819 |
| **10/21** | 18384 | 25161 | 18009 |
| **11/21** | 18122 | 24778 | 17827 |
| **12/21** | 19710 | 25754 | 19539 |
| **1/22** | 18304 | 24239 | 17989 |
| **2/22** | 17574 | 23628 | 17289 |
| **3/22** | 18678 | 24395 | 18511 |
| **4/22** | 17939 | 22206 | 17834 |
| **5/22** | 16907 | 22176 | 16999 |
| **6/22** | 17153 | 22227 | 17142 |
| **7/22** | 16176 | 21398 | 16134 |
| **8/22** | 14701 | 21005 | 14558 |
| **9/22** | 15472 | 22102 | 15431 |
| **12/22** | 14701 | 20808 | 14664 |
| **1/23** | 16260 | 22241 | 16141 |
| **2/23** | 15533 | 21721 | 15184 |
| **3/23** | 15160 | 22302 | 14920 |
| **4/23** | 15360 | 22539 | 14964 |
| **5/23** | 14736 | 22627 | 14332 |
| **6/23** | 15446 | 24172 | 15100 |
| **7/23** | 15819 | 25039 | 15402 |
| **8/23** | 15334 | 24555 | 14889 |
| **9/23** | 14418 | 23386 | 13841 |
| **10/23** | 13912 | 22766 | 13410 |
| **11/23** | 15328 | 24888 | 15000 |
| **12/23** | 16661 | 26209 | 16330 |
| **1/24** | 15880 | 26499 | 15536 |
| **2/24** | 16119 | 27933 | 15835 |
| **3/24** | 16358 | 28835 | 16116 |
| **4/24** | 15126 | 27566 | 14841 |
| **5/24** | 16063 | 28868 | 15626 |
| **6/24** | 16394 | 29762 | 15972 |
| **7/24** | 17498 | 30315 | 17118 |
| **8/24** | 18454 | 30975 | 18081 |
| **9/24** | 18918 | 31616 | 18654 |
| **10/24** | 18318 | 31384 | 17980 |
| **11/24** | 18918 | 33471 | 18623 |
| **12/24** | 17592 | 32448 | 17133 |
| **1/25** | 17747 | 33473 | 17309 |
| **2/25** | 18589 | 32831 | 18030 |
| **3/25** | 18221 | 30916 | 17605 |
| **4/25** | 18057 | 30709 | 17256 |
| **5/25** | 18086 | 32655 | 17455 |
| **6/25** | 18066 | 34314 | 17441 |
| **7/25** | 17776 | 35070 | 17252 |
| **8/25** | 18250 | 35881 | 17829 |
| **9/25** | 18239 | 37120 | 17907 |
| **10/25** | 17913 | 37915 | 17512 |
| **11/25** | 18320 | 38019 | 17905 |
| **12/25** | 17811 | 38012 | 17522 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 1.24% | 4.88% | 5.94% |
| Russell 3000 Index | 17.15% | 13.15% | 14.29% |
| FTSE NAREIT All Equity REIT Index | 2.27% | 4.85% | 5.77% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Russell 3000 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The FTSE NAREIT All Equity REIT Index is included as an additional index for the Fund as it shows how the Fund's performance compares with returns of an index of funds with similar investment objectives. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$248,115

* Total Number of Portfolio Holdings38

* Portfolio Turnover Rate 20.8%

* Total Advisory Fees Paid (amount in thousands)$1,944

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Common Stocks | 99.01% |
| Investment Companies | 0.57% |
| Other Assets and Liabilities | 0.42% |
| Total Net Assets | 100.00% |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Financial | 96.96% |
| Consumer, Cyclical | 2.05% |
| Money Market Funds | 0.57% |
| Other Assets and Liabilities | 0.42% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC28AR1-0

# Class 2

# Real Estate Securities Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Real Estate Securities Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $103 | 1.03% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to generate a total return. Under normal circumstances, the Fund invests at least 80% of its net assets in equity securities of companies principally engaged in the real estate industry. Real estate companies include real estate investment trusts ("REITs") and companies with substantial real estate holdings such as paper, lumber, hotel, and entertainment companies, as well as those whose products and services relate to the real estate industry, including building supply manufacturers, mortgage lenders, and mortgage servicing companies. The Fund's investments underperformed the FTSE NAREIT All Equity REITs Index during the year. Stock selection within the industrial sector was a top detractor, due to an underweight of a large stock that reported some green shoots of a recovery and an overweight to a cold storage company which underperformed on signs of weak demand. An overweight to the single family rental sector detracted with companies coming under pressure as the prospect of rate cuts could improve affordability of purchasing as opposed to renting. Net lease selection was also detractive. An overweight to U.S. senior housing stocks remained the key contributor with these companies demonstrating continued strong earnings growth and guidance upgrades on firming occupancy, improving pricing power and accretive acquisitions. An underweight to a data center exposed stock also contributed, as it lagged on broader concerns over artificial intelligence capital expenditure sustainability.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i32ca44fcc7248d8a339b5e2f.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 2 Shares at net asset value $17,359** | **Russell 3000 Index $38,012** | **FTSE NAREIT All Equity REIT Index $17,522** |
| **12/15** | 10000 | 10000 | 10000 |
| **1/16** | 9592 | 9436 | 9648 |
| **2/16** | 9551 | 9433 | 9607 |
| **3/16** | 10525 | 10097 | 10584 |
| **4/16** | 10229 | 10159 | 10392 |
| **5/16** | 10435 | 10341 | 10632 |
| **6/16** | 11117 | 10362 | 11368 |
| **7/16** | 11539 | 10774 | 11810 |
| **8/16** | 11141 | 10801 | 11400 |
| **9/16** | 10953 | 10818 | 11231 |
| **10/16** | 10345 | 10584 | 10657 |
| **11/16** | 10093 | 11058 | 10399 |
| **12/16** | 10553 | 11274 | 10863 |
| **1/17** | 10494 | 11486 | 10881 |
| **2/17** | 10923 | 11913 | 11318 |
| **3/17** | 10731 | 12047 | 11188 |
| **4/17** | 10760 | 12171 | 11174 |
| **5/17** | 10953 | 12280 | 11393 |
| **6/17** | 11067 | 12512 | 11537 |
| **7/17** | 11208 | 12536 | 11611 |
| **8/17** | 11096 | 12842 | 11519 |
| **9/17** | 11158 | 13122 | 11534 |
| **10/17** | 11463 | 13521 | 11840 |
| **12/17** | 11496 | 13656 | 11805 |
| **1/18** | 11174 | 14375 | 11457 |
| **2/18** | 10474 | 13846 | 10624 |
| **3/18** | 10891 | 13568 | 11019 |
| **4/18** | 10974 | 13619 | 11076 |
| **5/18** | 11196 | 14004 | 11475 |
| **6/18** | 11624 | 14095 | 11955 |
| **7/18** | 11674 | 14563 | 12028 |
| **8/18** | 11974 | 15074 | 12362 |
| **9/18** | 11760 | 15099 | 12059 |
| **10/18** | 11399 | 13988 | 11740 |
| **11/18** | 11920 | 14268 | 12298 |
| **12/18** | 10982 | 12940 | 11328 |
| **1/19** | 12244 | 14051 | 12639 |
| **2/19** | 12453 | 14545 | 12708 |
| **3/19** | 12900 | 14757 | 13273 |
| **4/19** | 12968 | 15346 | 13242 |
| **5/19** | 13115 | 14353 | 13328 |
| **6/19** | 13286 | 15361 | 13511 |
| **7/19** | 13482 | 15590 | 13719 |
| **8/19** | 14028 | 15272 | 14287 |
| **9/19** | 14320 | 15540 | 14555 |
| **10/19** | 14653 | 15875 | 14713 |
| **11/19** | 14553 | 16478 | 14486 |
| **12/19** | 14380 | 16954 | 14575 |
| **1/20** | 14673 | 16935 | 14759 |
| **2/20** | 13513 | 15549 | 13722 |
| **3/20** | 11072 | 13410 | 11158 |
| **4/20** | 11952 | 15187 | 12143 |
| **5/20** | 12125 | 15999 | 12351 |
| **6/20** | 12379 | 16364 | 12636 |
| **7/20** | 13099 | 17294 | 13119 |
| **8/20** | 13112 | 18546 | 13136 |
| **9/20** | 12706 | 17871 | 12787 |
| **10/20** | 12351 | 17485 | 12358 |
| **11/20** | 13472 | 19613 | 13497 |
| **12/20** | 13855 | 20495 | 13828 |
| **1/21** | 13783 | 20404 | 13818 |
| **2/21** | 14108 | 21042 | 14194 |
| **3/21** | 14832 | 21796 | 14979 |
| **4/21** | 15989 | 22919 | 16195 |
| **5/21** | 16162 | 23024 | 16328 |
| **6/21** | 16639 | 23592 | 16780 |
| **7/21** | 17565 | 23991 | 17513 |
| **8/21** | 17869 | 24675 | 17878 |
| **9/21** | 16890 | 23568 | 16819 |
| **10/21** | 18116 | 25161 | 18009 |
| **11/21** | 17850 | 24778 | 17827 |
| **12/21** | 19403 | 25754 | 19539 |
| **1/22** | 18022 | 24239 | 17989 |
| **2/22** | 17296 | 23628 | 17289 |
| **3/22** | 18373 | 24395 | 18511 |
| **4/22** | 17655 | 22206 | 17834 |
| **5/22** | 16633 | 22176 | 16999 |
| **6/22** | 16859 | 22227 | 17142 |
| **7/22** | 15899 | 21398 | 16134 |
| **8/22** | 14449 | 21005 | 14558 |
| **9/22** | 15196 | 22102 | 15431 |
| **12/22** | 14440 | 20808 | 14664 |
| **1/23** | 15969 | 22241 | 16141 |
| **2/23** | 15256 | 21721 | 15184 |
| **3/23** | 14882 | 22302 | 14920 |
| **4/23** | 15077 | 22539 | 14964 |
| **5/23** | 14457 | 22627 | 14332 |
| **6/23** | 15154 | 24172 | 15100 |
| **7/23** | 15519 | 25039 | 15402 |
| **8/23** | 15035 | 24555 | 14889 |
| **9/23** | 14134 | 23386 | 13841 |
| **10/23** | 13630 | 22766 | 13410 |
| **11/23** | 15024 | 24888 | 15000 |
| **12/23** | 16319 | 26209 | 16330 |
| **1/24** | 15554 | 26499 | 15536 |
| **2/24** | 15788 | 27933 | 15835 |
| **3/24** | 16013 | 28835 | 16116 |
| **4/24** | 14808 | 27566 | 14841 |
| **5/24** | 15725 | 28868 | 15626 |
| **6/24** | 16040 | 29762 | 15972 |
| **7/24** | 17119 | 30315 | 17118 |
| **8/24** | 18054 | 30975 | 18081 |
| **9/24** | 18504 | 31616 | 18654 |
| **10/24** | 17909 | 31384 | 17980 |
| **11/24** | 18495 | 33471 | 18623 |
| **12/24** | 17201 | 32448 | 17133 |
| **1/25** | 17343 | 33473 | 17309 |
| **2/25** | 18164 | 32831 | 18030 |
| **3/25** | 17805 | 30916 | 17605 |
| **4/25** | 17636 | 30709 | 17256 |
| **5/25** | 17664 | 32655 | 17455 |
| **6/25** | 17636 | 34314 | 17441 |
| **7/25** | 17352 | 35070 | 17252 |
| **8/25** | 17805 | 35881 | 17829 |
| **9/25** | 17797 | 37120 | 17907 |
| **10/25** | 17479 | 37915 | 17512 |
| **11/25** | 17866 | 38019 | 17905 |
| **12/25** | 17359 | 38012 | 17522 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 2 Shares | 0.92% | 4.61% | 5.67% |
| Russell 3000 Index | 17.15% | 13.15% | 14.29% |
| FTSE NAREIT All Equity REIT Index | 2.27% | 4.85% | 5.77% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Russell 3000 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The FTSE NAREIT All Equity REIT Index is included as an additional index for the Fund as it shows how the Fund's performance compares with returns of an index of funds with similar investment objectives. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$248,115

* Total Number of Portfolio Holdings38

* Portfolio Turnover Rate 20.8%

* Total Advisory Fees Paid (amount in thousands)$1,944

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Common Stocks | 99.01% |
| Investment Companies | 0.57% |
| Other Assets and Liabilities | 0.42% |
| Total Net Assets | 100.00% |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Financial | 96.96% |
| Consumer, Cyclical | 2.05% |
| Money Market Funds | 0.57% |
| Other Assets and Liabilities | 0.42% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC28AR2-0

# Class 1

# SAM Balanced Portfolio
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about SAM Balanced Portfolio (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $25 | 0.23% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide as high a level of total return as is consistent with reasonable risk. The Fund operates as a fund of funds and invests principally in funds of Principal Funds, Inc., Principal Variable Contracts Funds, Inc., and Principal Exchange-Traded Funds ("Underlying Funds"). The Fund typically allocates its assets among Underlying Funds in accordance with its outlook for the economy, the financial markets, and the relative market valuations of the Underlying Funds. The Fund typically invests 20-60% of its assets in fixed-income funds, 40-80% in equity funds, and up to 20% in specialty funds. The asset class diversification is designed to moderate overall price volatility and cushion severe losses in any one investment sector. The Fund's allocation in developed ex.-U.S. equities, which outperformed their U.S. counterparts, was the largest positive contributor to performance for the year. In addition, relative to the SAM Balanced Blended Index, the Fund's allocation of overweight to equity, underweight to fixed income, and overweight to alternative and specialty securities aided performance for the year. Lastly, the Fund's allocation to emerging market equities, which outperformed their developed ex-U.S. counterparts, positively contributed to performance for the year. The Fund's allocation in U.S. large cap value equities, which underperformed their growth counterparts, was the largest detractor from performance for the year. In addition, security selection in U.S. large cap growth equities hindered performance for the year. Lastly, the Fund's allocation in U.S. mid cap equities, which underperformed their large cap counterparts, negatively contributed to performance for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i8a696ded2443f88cabefe515.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 1 Shares at net asset value $22,168** | **Russell 3000 Index $38,012** |
| **12/15** | 10000 | 10000 |
| **1/16** | 9673 | 9436 |
| **2/16** | 9646 | 9433 |
| **3/16** | 10102 | 10097 |
| **4/16** | 10177 | 10159 |
| **5/16** | 10265 | 10341 |
| **6/16** | 10300 | 10362 |
| **7/16** | 10592 | 10774 |
| **8/16** | 10623 | 10801 |
| **9/16** | 10660 | 10818 |
| **10/16** | 10490 | 10584 |
| **11/16** | 10549 | 11058 |
| **12/16** | 10682 | 11274 |
| **1/17** | 10897 | 11486 |
| **2/17** | 11111 | 11913 |
| **3/17** | 11282 | 12047 |
| **4/17** | 11415 | 12171 |
| **5/17** | 11452 | 12280 |
| **6/17** | 11666 | 12512 |
| **7/17** | 11711 | 12536 |
| **8/17** | 11889 | 12842 |
| **9/17** | 12036 | 13122 |
| **10/17** | 12183 | 13521 |
| **12/17** | 12307 | 13656 |
| **1/18** | 12671 | 14375 |
| **2/18** | 12284 | 13846 |
| **3/18** | 12199 | 13568 |
| **4/18** | 12253 | 13619 |
| **5/18** | 12346 | 14004 |
| **6/18** | 12338 | 14095 |
| **7/18** | 12578 | 14563 |
| **8/18** | 12702 | 15074 |
| **9/18** | 12695 | 15099 |
| **10/18** | 12082 | 13988 |
| **11/18** | 12216 | 14268 |
| **12/18** | 11686 | 12940 |
| **1/19** | 12325 | 14051 |
| **2/19** | 12536 | 14545 |
| **3/19** | 12720 | 14757 |
| **4/19** | 13023 | 15346 |
| **5/19** | 12636 | 14353 |
| **6/19** | 13166 | 15361 |
| **7/19** | 13242 | 15590 |
| **8/19** | 13191 | 15272 |
| **9/19** | 13353 | 15540 |
| **10/19** | 13532 | 15875 |
| **11/19** | 13747 | 16478 |
| **12/19** | 14024 | 16954 |
| **1/20** | 14024 | 16935 |
| **2/20** | 13335 | 15549 |
| **3/20** | 11876 | 13410 |
| **4/20** | 12807 | 15187 |
| **5/20** | 13219 | 15999 |
| **6/20** | 13443 | 16364 |
| **7/20** | 13997 | 17294 |
| **8/20** | 14454 | 18546 |
| **9/20** | 14188 | 17871 |
| **10/20** | 14027 | 17485 |
| **11/20** | 15114 | 19613 |
| **12/20** | 15606 | 20495 |
| **1/21** | 15511 | 20404 |
| **2/21** | 15823 | 21042 |
| **3/21** | 16154 | 21796 |
| **4/21** | 16750 | 22919 |
| **5/21** | 16910 | 23024 |
| **6/21** | 17128 | 23592 |
| **7/21** | 17269 | 23991 |
| **8/21** | 17506 | 24675 |
| **9/21** | 16937 | 23568 |
| **10/21** | 17554 | 25161 |
| **11/21** | 17231 | 24778 |
| **12/21** | 17750 | 25754 |
| **1/22** | 17054 | 24239 |
| **2/22** | 16604 | 23628 |
| **3/22** | 16741 | 24395 |
| **4/22** | 15663 | 22206 |
| **5/22** | 15780 | 22176 |
| **6/22** | 15653 | 22227 |
| **7/22** | 15133 | 21398 |
| **8/22** | 14532 | 21005 |
| **9/22** | 15387 | 22102 |
| **12/22** | 14884 | 20808 |
| **1/23** | 15727 | 22241 |
| **2/23** | 15282 | 21721 |
| **3/23** | 15551 | 22302 |
| **4/23** | 15750 | 22539 |
| **5/23** | 15598 | 22627 |
| **6/23** | 16195 | 24172 |
| **7/23** | 16546 | 25039 |
| **8/23** | 16301 | 24555 |
| **9/23** | 15710 | 23386 |
| **10/23** | 15384 | 22766 |
| **11/23** | 16525 | 24888 |
| **12/23** | 17265 | 26209 |
| **1/24** | 17378 | 26499 |
| **2/24** | 17842 | 27933 |
| **3/24** | 18268 | 28835 |
| **4/24** | 17691 | 27566 |
| **5/24** | 18268 | 28868 |
| **6/24** | 18519 | 29762 |
| **7/24** | 18907 | 30315 |
| **8/24** | 19296 | 30975 |
| **9/24** | 19611 | 31616 |
| **10/24** | 19278 | 31384 |
| **11/24** | 20033 | 33471 |
| **12/24** | 19444 | 32448 |
| **1/25** | 19982 | 33473 |
| **2/25** | 19982 | 32831 |
| **3/25** | 19432 | 30916 |
| **4/25** | 19406 | 30709 |
| **5/25** | 20033 | 32655 |
| **6/25** | 20673 | 34314 |
| **7/25** | 20839 | 35070 |
| **8/25** | 21261 | 35881 |
| **9/25** | 21758 | 37120 |
| **10/25** | 21928 | 37915 |
| **11/25** | 22083 | 38019 |
| **12/25** | 22168 | 38012 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 14.00% | 7.27% | 8.29% |
| Russell 3000 Index | 17.15% | 13.15% | 14.29% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Russell 3000 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Fund uses a blended benchmark, SAM Balanced Blended Index. The largest component of the blended benchmark is included as an additional index for the Fund to show how the Fund's performance compares with returns of indices of funds with similar investment objectives. The weightings for SAM Balanced Blended Index are as follows: 45% Russell 3000 Index, 40% Bloomberg US Aggregate Index, and 15% MSCI EAFE Index NTR. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$561,417

* Total Number of Portfolio Holdings35

* Portfolio Turnover Rate 48.2%

* Total Advisory Fees Paid (amount in thousands)$1,302

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 100.00% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | 0.00% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Domestic Equity Funds | 41.63% |
| Fixed Income Funds | 31.10% |
| International Equity Funds | 22.83% |
| Money Market Funds | 1.98% |
| Specialty Funds | 1.43% |
| Alternative Funds | 1.03% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | 0.00% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC29AR1-0

# Class 2

# SAM Balanced Portfolio
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about SAM Balanced Portfolio (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $51 | 0.48% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide as high a level of total return as is consistent with reasonable risk. The Fund operates as a fund of funds and invests principally in funds of Principal Funds, Inc., Principal Variable Contracts Funds, Inc., and Principal Exchange-Traded Funds ("Underlying Funds"). The Fund typically allocates its assets among Underlying Funds in accordance with its outlook for the economy, the financial markets, and the relative market valuations of the Underlying Funds. The Fund typically invests 20-60% of its assets in fixed-income funds, 40-80% in equity funds, and up to 20% in specialty funds. The asset class diversification is designed to moderate overall price volatility and cushion severe losses in any one investment sector. The Fund's allocation in developed ex.-U.S. equities, which outperformed their U.S. counterparts, was the largest positive contributor to performance for the year. In addition, relative to the SAM Balanced Blended Index, the Fund's allocation of overweight to equity, underweight to fixed income, and overweight to alternative and specialty securities aided performance for the year. Lastly, the Fund's allocation to emerging market equities, which outperformed their developed ex-U.S. counterparts, positively contributed to performance for the year. The Fund's allocation in U.S. large cap value equities, which underperformed their growth counterparts, was the largest detractor from performance for the year. In addition, security selection in U.S. large cap growth equities hindered performance for the year. Lastly, the Fund's allocation in U.S. mid cap equities, which underperformed their large cap counterparts, negatively contributed to performance for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](icc76a1a290a31158a5cf568e.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 2 Shares at net asset value $21,616** | **Russell 3000 Index $38,012** |
| **12/15** | 10000 | 10000 |
| **1/16** | 9670 | 9436 |
| **2/16** | 9643 | 9433 |
| **3/16** | 10103 | 10097 |
| **4/16** | 10172 | 10159 |
| **5/16** | 10254 | 10341 |
| **6/16** | 10289 | 10362 |
| **7/16** | 10577 | 10774 |
| **8/16** | 10610 | 10801 |
| **9/16** | 10640 | 10818 |
| **10/16** | 10475 | 10584 |
| **11/16** | 10528 | 11058 |
| **12/16** | 10662 | 11274 |
| **1/17** | 10871 | 11486 |
| **2/17** | 11087 | 11913 |
| **3/17** | 11251 | 12047 |
| **4/17** | 11378 | 12171 |
| **5/17** | 11407 | 12280 |
| **6/17** | 11624 | 12512 |
| **7/17** | 11671 | 12536 |
| **8/17** | 11835 | 12842 |
| **9/17** | 11983 | 13122 |
| **10/17** | 12131 | 13521 |
| **12/17** | 12248 | 13656 |
| **1/18** | 12606 | 14375 |
| **2/18** | 12217 | 13846 |
| **3/18** | 12139 | 13568 |
| **4/18** | 12186 | 13619 |
| **5/18** | 12279 | 14004 |
| **6/18** | 12271 | 14095 |
| **7/18** | 12505 | 14563 |
| **8/18** | 12614 | 15074 |
| **9/18** | 12610 | 15099 |
| **10/18** | 12002 | 13988 |
| **11/18** | 12137 | 14268 |
| **12/18** | 11605 | 12940 |
| **1/19** | 12230 | 14051 |
| **2/19** | 12441 | 14545 |
| **3/19** | 12618 | 14757 |
| **4/19** | 12922 | 15346 |
| **5/19** | 12525 | 14353 |
| **6/19** | 13057 | 15361 |
| **7/19** | 13125 | 15590 |
| **8/19** | 13074 | 15272 |
| **9/19** | 13231 | 15540 |
| **10/19** | 13411 | 15875 |
| **11/19** | 13617 | 16478 |
| **12/19** | 13895 | 16954 |
| **1/20** | 13886 | 16935 |
| **2/20** | 13204 | 15549 |
| **3/20** | 11759 | 13410 |
| **4/20** | 12675 | 15187 |
| **5/20** | 13079 | 15999 |
| **6/20** | 13294 | 16364 |
| **7/20** | 13842 | 17294 |
| **8/20** | 14290 | 18546 |
| **9/20** | 14017 | 17871 |
| **10/20** | 13865 | 17485 |
| **11/20** | 14926 | 19613 |
| **12/20** | 15418 | 20495 |
| **1/21** | 15314 | 20404 |
| **2/21** | 15626 | 21042 |
| **3/21** | 15948 | 21796 |
| **4/21** | 16525 | 22919 |
| **5/21** | 16686 | 23024 |
| **6/21** | 16894 | 23592 |
| **7/21** | 17036 | 23991 |
| **8/21** | 17263 | 24675 |
| **9/21** | 16698 | 23568 |
| **10/21** | 17296 | 25161 |
| **11/21** | 16982 | 24778 |
| **12/21** | 17482 | 25754 |
| **1/22** | 16806 | 24239 |
| **2/22** | 16355 | 23628 |
| **3/22** | 16483 | 24395 |
| **4/22** | 15424 | 22206 |
| **5/22** | 15532 | 22176 |
| **6/22** | 15405 | 22227 |
| **7/22** | 14885 | 21398 |
| **8/22** | 14283 | 21005 |
| **9/22** | 15126 | 22102 |
| **12/22** | 14634 | 20808 |
| **1/23** | 15454 | 22241 |
| **2/23** | 15009 | 21721 |
| **3/23** | 15266 | 22302 |
| **4/23** | 15465 | 22539 |
| **5/23** | 15313 | 22627 |
| **6/23** | 15898 | 24172 |
| **7/23** | 16238 | 25039 |
| **8/23** | 15992 | 24555 |
| **9/23** | 15422 | 23386 |
| **10/23** | 15084 | 22766 |
| **11/23** | 16199 | 24888 |
| **12/23** | 16925 | 26209 |
| **1/24** | 17037 | 26499 |
| **2/24** | 17488 | 27933 |
| **3/24** | 17901 | 28835 |
| **4/24** | 17325 | 27566 |
| **5/24** | 17889 | 28868 |
| **6/24** | 18139 | 29762 |
| **7/24** | 18514 | 30315 |
| **8/24** | 18890 | 30975 |
| **9/24** | 19186 | 31616 |
| **10/24** | 18867 | 31384 |
| **11/24** | 19594 | 33471 |
| **12/24** | 19020 | 32448 |
| **1/25** | 19530 | 33473 |
| **2/25** | 19543 | 32831 |
| **3/25** | 18995 | 30916 |
| **4/25** | 18957 | 30709 |
| **5/25** | 19569 | 32655 |
| **6/25** | 20193 | 34314 |
| **7/25** | 20359 | 35070 |
| **8/25** | 20754 | 35881 |
| **9/25** | 21236 | 37120 |
| **10/25** | 21391 | 37915 |
| **11/25** | 21545 | 38019 |
| **12/25** | 21616 | 38012 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 2 Shares | 13.65% | 6.99% | 8.01% |
| Russell 3000 Index | 17.15% | 13.15% | 14.29% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Russell 3000 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Fund uses a blended benchmark, SAM Balanced Blended Index. The largest component of the blended benchmark is included as an additional index for the Fund to show how the Fund's performance compares with returns of indices of funds with similar investment objectives. The weightings for SAM Balanced Blended Index are as follows: 45% Russell 3000 Index, 40% Bloomberg US Aggregate Index, and 15% MSCI EAFE Index NTR. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$561,417

* Total Number of Portfolio Holdings35

* Portfolio Turnover Rate 48.2%

* Total Advisory Fees Paid (amount in thousands)$1,302

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 100.00% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | 0.00% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Domestic Equity Funds | 41.63% |
| Fixed Income Funds | 31.10% |
| International Equity Funds | 22.83% |
| Money Market Funds | 1.98% |
| Specialty Funds | 1.43% |
| Alternative Funds | 1.03% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | 0.00% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC29AR2-0

# Class 1

# SAM Conservative Balanced Portfolio
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about SAM Conservative Balanced Portfolio (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $25 | 0.24% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide a high level of total return, consistent with a moderate degree of principal risk. The Fund operates as a fund of funds and invests principally in funds of Principal Funds, Inc., Principal Variable Contracts Funds, Inc., and Principal Exchange-Traded Funds ("Underlying Funds"). The Fund typically allocates assets among Underlying Funds in accordance with its outlook for the economy, the financial markets, and the relative market valuations of the Underlying Funds. The Fund typically invests 40-80% of its assets in fixed-income funds, 20-60% in equity funds, and up to 20% specialty funds. The asset class diversification is designed to moderate overall price volatility and cushion severe losses in any one investment sector. The Fund's allocation in developed ex.-U.S. equities, which outperformed their U.S. counterparts, was the largest positive contributor to performance for the year. In addition, the Fund's allocation to emerging market debt, which outperformed core fixed income, aided performance for the year. Lastly, the Fund's allocation to emerging market equities, which outperformed their developed ex-U.S. counterparts, positively contributed to performance for the year. The Fund's allocation in U.S. large cap value equities, which underperformed their growth counterparts, was the largest detractor from performance for the year. In addition, security selection in U.S. large cap growth equities hindered performance for the year. Lastly, the Fund's allocation in U.S. mid cap equities, which underperformed their large cap counterparts, negatively contributed to performance for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i6034917b12928a323a56d354.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 1 Shares at net asset value $18,587** | **Bloomberg US Aggregate Index $12,199** |
| **12/15** | 10000 | 10000 |
| **1/16** | 9792 | 10138 |
| **2/16** | 9783 | 10210 |
| **3/16** | 10148 | 10303 |
| **4/16** | 10226 | 10343 |
| **5/16** | 10286 | 10345 |
| **6/16** | 10356 | 10531 |
| **7/16** | 10590 | 10598 |
| **8/16** | 10628 | 10586 |
| **9/16** | 10656 | 10580 |
| **10/16** | 10526 | 10499 |
| **11/16** | 10526 | 10250 |
| **12/16** | 10637 | 10265 |
| **1/17** | 10804 | 10285 |
| **2/17** | 10979 | 10354 |
| **3/17** | 11109 | 10428 |
| **4/17** | 11211 | 10509 |
| **5/17** | 11238 | 10498 |
| **6/17** | 11405 | 10543 |
| **7/17** | 11452 | 10638 |
| **8/17** | 11567 | 10587 |
| **9/17** | 11673 | 10593 |
| **10/17** | 11769 | 10580 |
| **12/17** | 11856 | 10628 |
| **1/18** | 12077 | 10506 |
| **2/18** | 11798 | 10406 |
| **3/18** | 11760 | 10473 |
| **4/18** | 11789 | 10395 |
| **5/18** | 11856 | 10469 |
| **6/18** | 11846 | 10456 |
| **7/18** | 12010 | 10459 |
| **8/18** | 12106 | 10526 |
| **9/18** | 12094 | 10458 |
| **10/18** | 11670 | 10376 |
| **11/18** | 11752 | 10438 |
| **12/18** | 11442 | 10629 |
| **1/19** | 11908 | 10742 |
| **2/19** | 12053 | 10736 |
| **3/19** | 12229 | 10942 |
| **4/19** | 12436 | 10945 |
| **5/19** | 12218 | 11139 |
| **6/19** | 12602 | 11279 |
| **7/19** | 12674 | 11304 |
| **8/19** | 12695 | 11597 |
| **9/19** | 12792 | 11535 |
| **10/19** | 12922 | 11570 |
| **11/19** | 13063 | 11564 |
| **12/19** | 13259 | 11556 |
| **1/20** | 13314 | 11778 |
| **2/20** | 12900 | 11990 |
| **3/20** | 11736 | 11920 |
| **4/20** | 12454 | 12132 |
| **5/20** | 12770 | 12188 |
| **6/20** | 12955 | 12265 |
| **7/20** | 13390 | 12448 |
| **8/20** | 13694 | 12348 |
| **9/20** | 13511 | 12341 |
| **10/20** | 13408 | 12286 |
| **11/20** | 14180 | 12406 |
| **12/20** | 14532 | 12423 |
| **1/21** | 14453 | 12334 |
| **2/21** | 14623 | 12156 |
| **3/21** | 14828 | 12005 |
| **4/21** | 15259 | 12099 |
| **5/21** | 15384 | 12139 |
| **6/21** | 15554 | 12224 |
| **7/21** | 15679 | 12361 |
| **8/21** | 15838 | 12337 |
| **9/21** | 15440 | 12230 |
| **10/21** | 15826 | 12227 |
| **11/21** | 15604 | 12263 |
| **12/21** | 15943 | 12232 |
| **1/22** | 15428 | 11968 |
| **2/22** | 15077 | 11835 |
| **3/22** | 15100 | 11506 |
| **4/22** | 14292 | 11069 |
| **5/22** | 14362 | 11141 |
| **6/22** | 14292 | 11234 |
| **7/22** | 13882 | 10917 |
| **8/22** | 13279 | 10310 |
| **9/22** | 13946 | 10689 |
| **12/22** | 13639 | 10641 |
| **1/23** | 14292 | 10968 |
| **2/23** | 13919 | 10684 |
| **3/23** | 14133 | 10956 |
| **4/23** | 14292 | 11022 |
| **5/23** | 14146 | 10902 |
| **6/23** | 14479 | 10863 |
| **7/23** | 14692 | 10856 |
| **8/23** | 14519 | 10786 |
| **9/23** | 14070 | 10512 |
| **10/23** | 13794 | 10346 |
| **11/23** | 14664 | 10815 |
| **12/23** | 15272 | 11229 |
| **1/24** | 15342 | 11198 |
| **2/24** | 15549 | 11040 |
| **3/24** | 15839 | 11142 |
| **4/24** | 15397 | 10860 |
| **5/24** | 15812 | 11044 |
| **6/24** | 15991 | 11149 |
| **7/24** | 16337 | 11409 |
| **8/24** | 16641 | 11573 |
| **9/24** | 16883 | 11728 |
| **10/24** | 16585 | 11437 |
| **11/24** | 17053 | 11558 |
| **12/24** | 16642 | 11369 |
| **1/25** | 16982 | 11430 |
| **2/25** | 17095 | 11681 |
| **3/25** | 16798 | 11685 |
| **4/25** | 16798 | 11731 |
| **5/25** | 17124 | 11647 |
| **6/25** | 17563 | 11826 |
| **7/25** | 17648 | 11795 |
| **8/25** | 17960 | 11936 |
| **9/25** | 18303 | 12067 |
| **10/25** | 18422 | 12142 |
| **11/25** | 18542 | 12217 |
| **12/25** | 18587 | 12199 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 11.69% | 5.04% | 6.39% |
| Bloomberg US Aggregate Index | 7.30% | -0.36% | 2.01% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Bloomberg US Aggregate Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Fund uses a blended benchmark, SAM Conservative Balanced Blended Index. The largest component of the blended benchmark is included as an additional index for the Fund to shows how the Fund's performance compares with returns of indices of funds with similar investment objectives. The weightings for SAM Conservative Balanced Blended Index are as follows: 60% Bloomberg US Aggregate Index, 30% Russell 3000 Index, and 10% MSCI EAFE Index NTR. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$161,481

* Total Number of Portfolio Holdings35

* Portfolio Turnover Rate 40.4%

* Total Advisory Fees Paid (amount in thousands)$363

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 99.95% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | 0.05% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Fixed Income Funds | 51.75% |
| Domestic Equity Funds | 26.67% |
| International Equity Funds | 14.42% |
| Money Market Funds | 4.95% |
| Specialty Funds | 1.15% |
| Alternative Funds | 1.01% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | 0.05% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC30AR1-0

# Class 2

# SAM Conservative Balanced Portfolio
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about SAM Conservative Balanced Portfolio (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $52 | 0.49% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide a high level of total return, consistent with a moderate degree of principal risk. The Fund operates as a fund of funds and invests principally in funds of Principal Funds, Inc., Principal Variable Contracts Funds, Inc., and Principal Exchange-Traded Funds ("Underlying Funds"). The Fund typically allocates assets among Underlying Funds in accordance with its outlook for the economy, the financial markets, and the relative market valuations of the Underlying Funds. The Fund typically invests 40-80% of its assets in fixed-income funds, 20-60% in equity funds, and up to 20% specialty funds. The asset class diversification is designed to moderate overall price volatility and cushion severe losses in any one investment sector. The Fund's allocation in developed ex.-U.S. equities, which outperformed their U.S. counterparts, was the largest positive contributor to performance for the year. In addition, the Fund's allocation to emerging market debt, which outperformed core fixed income, aided performance for the year. Lastly, the Fund's allocation to emerging market equities, which outperformed their developed ex-U.S. counterparts, positively contributed to performance for the year. The Fund's allocation in U.S. large cap value equities, which underperformed their growth counterparts, was the largest detractor from performance for the year. In addition, security selection in U.S. large cap growth equities hindered performance for the year. Lastly, the Fund's allocation in U.S. mid cap equities, which underperformed their large cap counterparts, negatively contributed to performance for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i62df5d60b35bc011cde1dca3.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 2 Shares at net asset value $18,109** | **Bloomberg US Aggregate Index $12,199** |
| **12/15** | 10000 | 10000 |
| **1/16** | 9790 | 10138 |
| **2/16** | 9772 | 10210 |
| **3/16** | 10131 | 10303 |
| **4/16** | 10210 | 10343 |
| **5/16** | 10272 | 10345 |
| **6/16** | 10342 | 10531 |
| **7/16** | 10570 | 10598 |
| **8/16** | 10598 | 10586 |
| **9/16** | 10626 | 10580 |
| **10/16** | 10496 | 10499 |
| **11/16** | 10496 | 10250 |
| **12/16** | 10608 | 10265 |
| **1/17** | 10766 | 10285 |
| **2/17** | 10943 | 10354 |
| **3/17** | 11064 | 10428 |
| **4/17** | 11167 | 10509 |
| **5/17** | 11186 | 10498 |
| **6/17** | 11353 | 10543 |
| **7/17** | 11393 | 10638 |
| **8/17** | 11509 | 10587 |
| **9/17** | 11616 | 10593 |
| **10/17** | 11703 | 10580 |
| **12/17** | 11790 | 10628 |
| **1/18** | 12012 | 10506 |
| **2/18** | 11732 | 10406 |
| **3/18** | 11683 | 10473 |
| **4/18** | 11712 | 10395 |
| **5/18** | 11780 | 10469 |
| **6/18** | 11770 | 10456 |
| **7/18** | 11925 | 10459 |
| **8/18** | 12012 | 10526 |
| **9/18** | 12002 | 10458 |
| **10/18** | 11586 | 10376 |
| **11/18** | 11659 | 10438 |
| **12/18** | 11347 | 10629 |
| **1/19** | 11805 | 10742 |
| **2/19** | 11950 | 10736 |
| **3/19** | 12127 | 10942 |
| **4/19** | 12325 | 10945 |
| **5/19** | 12117 | 11139 |
| **6/19** | 12491 | 11279 |
| **7/19** | 12554 | 11304 |
| **8/19** | 12574 | 11597 |
| **9/19** | 12655 | 11535 |
| **10/19** | 12797 | 11570 |
| **11/19** | 12928 | 11564 |
| **12/19** | 13125 | 11556 |
| **1/20** | 13168 | 11778 |
| **2/20** | 12754 | 11990 |
| **3/20** | 11597 | 11920 |
| **4/20** | 12317 | 12132 |
| **5/20** | 12623 | 12188 |
| **6/20** | 12797 | 12265 |
| **7/20** | 13234 | 12448 |
| **8/20** | 13528 | 12348 |
| **9/20** | 13338 | 12341 |
| **10/20** | 13235 | 12286 |
| **11/20** | 13997 | 12406 |
| **12/20** | 14338 | 12423 |
| **1/21** | 14259 | 12334 |
| **2/21** | 14429 | 12156 |
| **3/21** | 14634 | 12005 |
| **4/21** | 15055 | 12099 |
| **5/21** | 15168 | 12139 |
| **6/21** | 15327 | 12224 |
| **7/21** | 15453 | 12361 |
| **8/21** | 15600 | 12337 |
| **9/21** | 15217 | 12230 |
| **10/21** | 15592 | 12227 |
| **11/21** | 15357 | 12263 |
| **12/21** | 15697 | 12232 |
| **1/22** | 15182 | 11968 |
| **2/22** | 14830 | 11835 |
| **3/22** | 14854 | 11506 |
| **4/22** | 14057 | 11069 |
| **5/22** | 14127 | 11141 |
| **6/22** | 14045 | 11234 |
| **7/22** | 13647 | 10917 |
| **8/22** | 13045 | 10310 |
| **9/22** | 13698 | 10689 |
| **12/22** | 13391 | 10641 |
| **1/23** | 14031 | 10968 |
| **2/23** | 13658 | 10684 |
| **3/23** | 13871 | 10956 |
| **4/23** | 14017 | 11022 |
| **5/23** | 13871 | 10902 |
| **6/23** | 14204 | 10863 |
| **7/23** | 14404 | 10856 |
| **8/23** | 14231 | 10786 |
| **9/23** | 13786 | 10512 |
| **10/23** | 13524 | 10346 |
| **11/23** | 14365 | 10815 |
| **12/23** | 14971 | 11229 |
| **1/24** | 15027 | 11198 |
| **2/24** | 15220 | 11040 |
| **3/24** | 15509 | 11142 |
| **4/24** | 15082 | 10860 |
| **5/24** | 15468 | 11044 |
| **6/24** | 15647 | 11149 |
| **7/24** | 15978 | 11409 |
| **8/24** | 16267 | 11573 |
| **9/24** | 16512 | 11728 |
| **10/24** | 16202 | 11437 |
| **11/24** | 16668 | 11558 |
| **12/24** | 16273 | 11369 |
| **1/25** | 16597 | 11430 |
| **2/25** | 16710 | 11681 |
| **3/25** | 16400 | 11685 |
| **4/25** | 16400 | 11731 |
| **5/25** | 16710 | 11647 |
| **6/25** | 17148 | 11826 |
| **7/25** | 17218 | 11795 |
| **8/25** | 17529 | 11936 |
| **9/25** | 17856 | 12067 |
| **10/25** | 17960 | 12142 |
| **11/25** | 18079 | 12217 |
| **12/25** | 18109 | 12199 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 2 Shares | 11.28% | 4.78% | 6.12% |
| Bloomberg US Aggregate Index | 7.30% | -0.36% | 2.01% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Bloomberg US Aggregate Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Fund uses a blended benchmark, SAM Conservative Balanced Blended Index. The largest component of the blended benchmark is included as an additional index for the Fund to shows how the Fund's performance compares with returns of indices of funds with similar investment objectives. The weightings for SAM Conservative Balanced Blended Index are as follows: 60% Bloomberg US Aggregate Index, 30% Russell 3000 Index, and 10% MSCI EAFE Index NTR. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$161,481

* Total Number of Portfolio Holdings35

* Portfolio Turnover Rate 40.4%

* Total Advisory Fees Paid (amount in thousands)$363

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 99.95% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | 0.05% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Fixed Income Funds | 51.75% |
| Domestic Equity Funds | 26.67% |
| International Equity Funds | 14.42% |
| Money Market Funds | 4.95% |
| Specialty Funds | 1.15% |
| Alternative Funds | 1.01% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | 0.05% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC30AR2-0

# Class 1

# SAM Conservative Growth Portfolio
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about SAM Conservative Growth Portfolio (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $26 | 0.24% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide long-term capital appreciation. The Fund operates as a fund of funds and invests principally in funds of Principal Funds, Inc., Principal Variable Contracts Funds, Inc., and Principal Exchange-Traded Funds ("Underlying Funds"). The Fund typically allocates its assets among Underlying Funds in accordance with its outlook for the economy, the financial markets, and the relative market valuations of the Underlying Funds. The Fund typically invests 0-40% of its assets in fixed-income funds, 60-100% in equity funds, and up to 20% in specialty funds. The asset class diversification is designed to moderate overall price volatility and cushion severe losses in any one investment sector. The Fund's allocation in developed ex.-U.S. equities, which outperformed their U.S. counterparts, was the largest positive contributor to performance for the year. In addition, the Fund's allocation to emerging market equities, which outperformed their developed ex-U.S. counterparts, aided performance for the year. Lastly, the Fund's allocation in developed ex.-U.S. small cap equities, which outperformed their larger cap developed ex-U.S. counterparts, positively contributed to performance for the year. The Fund's allocation in U.S. large cap value equities, which underperformed their growth counterparts, was the largest detractor from performance for the year. In addition, security selection in U.S. large cap growth equities hindered performance for the year. Lastly, the Fund's allocation in U.S. mid cap equities, which underperformed their large cap counterparts, negatively contributed to performance for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](ib8bb846109082176f04220e9.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 1 Shares at net asset value $25,802** | **Russell 3000 Index $38,012** |
| **12/15** | 10000 | 10000 |
| **1/16** | 9541 | 9436 |
| **2/16** | 9495 | 9433 |
| **3/16** | 10041 | 10097 |
| **4/16** | 10105 | 10159 |
| **5/16** | 10226 | 10341 |
| **6/16** | 10226 | 10362 |
| **7/16** | 10563 | 10774 |
| **8/16** | 10600 | 10801 |
| **9/16** | 10644 | 10818 |
| **10/16** | 10420 | 10584 |
| **11/16** | 10563 | 11058 |
| **12/16** | 10700 | 11274 |
| **1/17** | 10967 | 11486 |
| **2/17** | 11240 | 11913 |
| **3/17** | 11464 | 12047 |
| **4/17** | 11613 | 12171 |
| **5/17** | 11675 | 12280 |
| **6/17** | 11949 | 12512 |
| **7/17** | 12022 | 12536 |
| **8/17** | 12267 | 12842 |
| **9/17** | 12474 | 13122 |
| **10/17** | 12680 | 13521 |
| **12/17** | 12816 | 13656 |
| **1/18** | 13351 | 14375 |
| **2/18** | 12854 | 13846 |
| **3/18** | 12732 | 13568 |
| **4/18** | 12796 | 13619 |
| **5/18** | 12919 | 14004 |
| **6/18** | 12887 | 14095 |
| **7/18** | 13216 | 14563 |
| **8/18** | 13358 | 15074 |
| **9/18** | 13362 | 15099 |
| **10/18** | 12546 | 13988 |
| **11/18** | 12735 | 14268 |
| **12/18** | 11967 | 12940 |
| **1/19** | 12783 | 14051 |
| **2/19** | 13062 | 14545 |
| **3/19** | 13258 | 14757 |
| **4/19** | 13655 | 15346 |
| **5/19** | 13083 | 14353 |
| **6/19** | 13774 | 15361 |
| **7/19** | 13864 | 15590 |
| **8/19** | 13739 | 15272 |
| **9/19** | 13953 | 15540 |
| **10/19** | 14199 | 15875 |
| **11/19** | 14474 | 16478 |
| **12/19** | 14847 | 16954 |
| **1/20** | 14802 | 16935 |
| **2/20** | 13849 | 15549 |
| **3/20** | 12025 | 13410 |
| **4/20** | 13164 | 15187 |
| **5/20** | 13678 | 15999 |
| **6/20** | 13953 | 16364 |
| **7/20** | 14638 | 17294 |
| **8/20** | 15264 | 18546 |
| **9/20** | 14896 | 17871 |
| **10/20** | 14695 | 17485 |
| **11/20** | 16114 | 19613 |
| **12/20** | 16769 | 20495 |
| **1/21** | 16646 | 20404 |
| **2/21** | 17116 | 21042 |
| **3/21** | 17594 | 21796 |
| **4/21** | 18365 | 22919 |
| **5/21** | 18581 | 23024 |
| **6/21** | 18859 | 23592 |
| **7/21** | 19013 | 23991 |
| **8/21** | 19360 | 24675 |
| **9/21** | 18584 | 23568 |
| **10/21** | 19451 | 25161 |
| **11/21** | 19029 | 24778 |
| **12/21** | 19745 | 25754 |
| **1/22** | 18815 | 24239 |
| **2/22** | 18242 | 23628 |
| **3/22** | 18520 | 24395 |
| **4/22** | 17128 | 22206 |
| **5/22** | 17271 | 22176 |
| **6/22** | 17128 | 22227 |
| **7/22** | 16484 | 21398 |
| **8/22** | 15865 | 21005 |
| **9/22** | 16950 | 22102 |
| **12/22** | 16233 | 20808 |
| **1/23** | 17263 | 22241 |
| **2/23** | 16739 | 21721 |
| **3/23** | 17061 | 22302 |
| **4/23** | 17318 | 22539 |
| **5/23** | 17153 | 22627 |
| **6/23** | 18036 | 24172 |
| **7/23** | 18532 | 25039 |
| **8/23** | 18192 | 24555 |
| **9/23** | 17451 | 23386 |
| **10/23** | 17046 | 22766 |
| **11/23** | 18478 | 24888 |
| **12/23** | 19377 | 26209 |
| **1/24** | 19525 | 26499 |
| **2/24** | 20227 | 27933 |
| **3/24** | 20799 | 28835 |
| **4/24** | 20069 | 27566 |
| **5/24** | 20809 | 28868 |
| **6/24** | 21125 | 29762 |
| **7/24** | 21580 | 30315 |
| **8/24** | 22064 | 30975 |
| **9/24** | 22449 | 31616 |
| **10/24** | 22078 | 31384 |
| **11/24** | 23120 | 33471 |
| **12/24** | 22328 | 32448 |
| **1/25** | 23070 | 33473 |
| **2/25** | 22950 | 32831 |
| **3/25** | 22138 | 30916 |
| **4/25** | 22078 | 30709 |
| **5/25** | 23000 | 32655 |
| **6/25** | 23852 | 34314 |
| **7/25** | 24082 | 35070 |
| **8/25** | 24633 | 35881 |
| **9/25** | 25278 | 37120 |
| **10/25** | 25496 | 37915 |
| **11/25** | 25682 | 38019 |
| **12/25** | 25802 | 38012 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 15.56% | 9.00% | 9.94% |
| Russell 3000 Index | 17.15% | 13.15% | 14.29% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Russell 3000 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Fund uses a blended benchmark, SAM Conservative Growth Blended Index. The largest component of the blended benchmark is included as an additional index for the Fund to show how the Fund's performance compares with returns of indices of funds with similar investment objectives. The weightings for SAM Conservative Growth Blended Index are as follows: 60% Russell 3000 Index, 20% Bloomberg US Aggregate Index, and 20% MSCI EAFE Index NTR. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$427,156

* Total Number of Portfolio Holdings27

* Portfolio Turnover Rate 47.2%

* Total Advisory Fees Paid (amount in thousands)$941

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 100.03% |
| Other Assets and Liabilities | (0.03)% |
| Total Net Assets | 100.00% |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Domestic Equity Funds | 53.20% |
| International Equity Funds | 29.46% |
| Fixed Income Funds | 14.16% |
| Specialty Funds | 1.53% |
| Money Market Funds | 0.93% |
| Alternative Funds | 0.75% |
| Other Assets and Liabilities | (0.03)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC31AR1-0

# Class 2

# SAM Conservative Growth Portfolio
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about SAM Conservative Growth Portfolio (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $53 | 0.49% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide long-term capital appreciation. The Fund operates as a fund of funds and invests principally in funds of Principal Funds, Inc., Principal Variable Contracts Funds, Inc., and Principal Exchange-Traded Funds ("Underlying Funds"). The Fund typically allocates its assets among Underlying Funds in accordance with its outlook for the economy, the financial markets, and the relative market valuations of the Underlying Funds. The Fund typically invests 0-40% of its assets in fixed-income funds, 60-100% in equity funds, and up to 20% in specialty funds. The asset class diversification is designed to moderate overall price volatility and cushion severe losses in any one investment sector. The Fund's allocation in developed ex.-U.S. equities, which outperformed their U.S. counterparts, was the largest positive contributor to performance for the year. In addition, the Fund's allocation to emerging market equities, which outperformed their developed ex-U.S. counterparts, aided performance for the year. Lastly, the Fund's allocation in developed ex.-U.S. small cap equities, which outperformed their larger cap developed ex-U.S. counterparts, positively contributed to performance for the year. The Fund's allocation in U.S. large cap value equities, which underperformed their growth counterparts, was the largest detractor from performance for the year. In addition, security selection in U.S. large cap growth equities hindered performance for the year. Lastly, the Fund's allocation in U.S. mid cap equities, which underperformed their large cap counterparts, negatively contributed to performance for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i05fbdf370cfb1aaff03fc652.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 2 Shares at net asset value $25,176** | **Russell 3000 Index $38,012** |
| **12/15** | 10000 | 10000 |
| **1/16** | 9542 | 9436 |
| **2/16** | 9489 | 9433 |
| **3/16** | 10041 | 10097 |
| **4/16** | 10100 | 10159 |
| **5/16** | 10217 | 10341 |
| **6/16** | 10217 | 10362 |
| **7/16** | 10552 | 10774 |
| **8/16** | 10582 | 10801 |
| **9/16** | 10626 | 10818 |
| **10/16** | 10400 | 10584 |
| **11/16** | 10538 | 11058 |
| **12/16** | 10676 | 11274 |
| **1/17** | 10933 | 11486 |
| **2/17** | 11209 | 11913 |
| **3/17** | 11429 | 12047 |
| **4/17** | 11573 | 12171 |
| **5/17** | 11630 | 12280 |
| **6/17** | 11900 | 12512 |
| **7/17** | 11973 | 12536 |
| **8/17** | 12220 | 12842 |
| **9/17** | 12415 | 13122 |
| **10/17** | 12623 | 13521 |
| **12/17** | 12754 | 13656 |
| **1/18** | 13287 | 14375 |
| **2/18** | 12786 | 13846 |
| **3/18** | 12663 | 13568 |
| **4/18** | 12728 | 13619 |
| **5/18** | 12845 | 14004 |
| **6/18** | 12812 | 14095 |
| **7/18** | 13131 | 14563 |
| **8/18** | 13274 | 15074 |
| **9/18** | 13267 | 15099 |
| **10/18** | 12460 | 13988 |
| **11/18** | 12642 | 14268 |
| **12/18** | 11884 | 12940 |
| **1/19** | 12684 | 14051 |
| **2/19** | 12958 | 14545 |
| **3/19** | 13155 | 14757 |
| **4/19** | 13541 | 15346 |
| **5/19** | 12972 | 14353 |
| **6/19** | 13654 | 15361 |
| **7/19** | 13738 | 15590 |
| **8/19** | 13612 | 15272 |
| **9/19** | 13822 | 15540 |
| **10/19** | 14062 | 15875 |
| **11/19** | 14331 | 16478 |
| **12/19** | 14698 | 16954 |
| **1/20** | 14653 | 16935 |
| **2/20** | 13702 | 15549 |
| **3/20** | 11898 | 13410 |
| **4/20** | 13029 | 15187 |
| **5/20** | 13530 | 15999 |
| **6/20** | 13800 | 16364 |
| **7/20** | 14474 | 17294 |
| **8/20** | 15088 | 18546 |
| **9/20** | 14728 | 17871 |
| **10/20** | 14519 | 17485 |
| **11/20** | 15920 | 19613 |
| **12/20** | 16563 | 20495 |
| **1/21** | 16439 | 20404 |
| **2/21** | 16895 | 21042 |
| **3/21** | 17367 | 21796 |
| **4/21** | 18126 | 22919 |
| **5/21** | 18335 | 23024 |
| **6/21** | 18598 | 23592 |
| **7/21** | 18753 | 23991 |
| **8/21** | 19086 | 24675 |
| **9/21** | 18319 | 23568 |
| **10/21** | 19173 | 25161 |
| **11/21** | 18750 | 24778 |
| **12/21** | 19452 | 25754 |
| **1/22** | 18535 | 24239 |
| **2/22** | 17960 | 23628 |
| **3/22** | 18231 | 24395 |
| **4/22** | 16860 | 22206 |
| **5/22** | 17003 | 22176 |
| **6/22** | 16852 | 22227 |
| **7/22** | 16214 | 21398 |
| **8/22** | 15605 | 21005 |
| **9/22** | 16656 | 22102 |
| **12/22** | 15955 | 20808 |
| **1/23** | 16969 | 22241 |
| **2/23** | 16444 | 21721 |
| **3/23** | 16757 | 22302 |
| **4/23** | 17006 | 22539 |
| **5/23** | 16840 | 22627 |
| **6/23** | 17707 | 24172 |
| **7/23** | 18186 | 25039 |
| **8/23** | 17854 | 24555 |
| **9/23** | 17116 | 23386 |
| **10/23** | 16720 | 22766 |
| **11/23** | 18115 | 24888 |
| **12/23** | 18995 | 26209 |
| **1/24** | 19133 | 26499 |
| **2/24** | 19825 | 27933 |
| **3/24** | 20379 | 28835 |
| **4/24** | 19657 | 27566 |
| **5/24** | 20379 | 28868 |
| **6/24** | 20685 | 29762 |
| **7/24** | 21130 | 30315 |
| **8/24** | 21595 | 30975 |
| **9/24** | 21963 | 31616 |
| **10/24** | 21602 | 31384 |
| **11/24** | 22614 | 33471 |
| **12/24** | 21833 | 32448 |
| **1/25** | 22554 | 33473 |
| **2/25** | 22434 | 32831 |
| **3/25** | 21633 | 30916 |
| **4/25** | 21562 | 30709 |
| **5/25** | 22474 | 32655 |
| **6/25** | 23295 | 34314 |
| **7/25** | 23515 | 35070 |
| **8/25** | 24046 | 35881 |
| **9/25** | 24673 | 37120 |
| **10/25** | 24881 | 37915 |
| **11/25** | 25056 | 38019 |
| **12/25** | 25176 | 38012 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 2 Shares | 15.31% | 8.74% | 9.67% |
| Russell 3000 Index | 17.15% | 13.15% | 14.29% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Russell 3000 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Fund uses a blended benchmark, SAM Conservative Growth Blended Index. The largest component of the blended benchmark is included as an additional index for the Fund to show how the Fund's performance compares with returns of indices of funds with similar investment objectives. The weightings for SAM Conservative Growth Blended Index are as follows: 60% Russell 3000 Index, 20% Bloomberg US Aggregate Index, and 20% MSCI EAFE Index NTR. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$427,156

* Total Number of Portfolio Holdings27

* Portfolio Turnover Rate 47.2%

* Total Advisory Fees Paid (amount in thousands)$941

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 100.03% |
| Other Assets and Liabilities | (0.03)% |
| Total Net Assets | 100.00% |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Domestic Equity Funds | 53.20% |
| International Equity Funds | 29.46% |
| Fixed Income Funds | 14.16% |
| Specialty Funds | 1.53% |
| Money Market Funds | 0.93% |
| Alternative Funds | 0.75% |
| Other Assets and Liabilities | (0.03)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC31AR2-0

# Class 1

# SAM Flexible Income Portfolio
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about SAM Flexible Income Portfolio (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $25 | 0.24% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide a high level of total return. The Fund operates as a fund of funds and invests principally in funds of Principal Funds, Inc., Principal Variable Contracts Funds, Inc., and Principal Exchange-Traded Funds ("Underlying Funds"). The Fund typically allocates its assets among Underlying Funds in accordance with its outlook for the economy, the financial markets, and the relative market valuations of the Underlying Funds. The Fund typically invests 55-95% of its assets in fixed-income funds, 5-45% in equity funds, and up to 20% in specialty funds. The asset class diversification is designed to moderate overall price volatility and cushion severe losses in any one investment sector. The Fund's allocation in developed ex.-U.S. equities, which outperformed their U.S. counterparts, was the largest positive contributor to performance for the year. In addition, the Fund's allocation to emerging market debt, which outperformed core fixed income, aided performance for the year. Lastly, security selection in emerging market debt positively contributed to performance for the year. The Fund's allocation in U.S. large cap value equities, which underperformed their growth counterparts, was the largest detractor from performance for the year. In addition, the Fund's allocation in U.S. mid cap equities, which underperformed their large cap counterparts, hindered performance for the year. Lastly, security selection in U.S. mega cap equities negatively contributed to performance for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i28f193bdc77a4cbc1eff61c4.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 1 Shares at net asset value $16,469** | **Bloomberg US Aggregate Index $12,199** |
| **12/15** | 10000 | 10000 |
| **1/16** | 9886 | 10138 |
| **2/16** | 9902 | 10210 |
| **3/16** | 10212 | 10303 |
| **4/16** | 10318 | 10343 |
| **5/16** | 10367 | 10345 |
| **6/16** | 10489 | 10531 |
| **7/16** | 10668 | 10598 |
| **8/16** | 10713 | 10586 |
| **9/16** | 10730 | 10580 |
| **10/16** | 10653 | 10499 |
| **11/16** | 10593 | 10250 |
| **12/16** | 10704 | 10265 |
| **1/17** | 10825 | 10285 |
| **2/17** | 10971 | 10354 |
| **3/17** | 11057 | 10428 |
| **4/17** | 11152 | 10509 |
| **5/17** | 11152 | 10498 |
| **6/17** | 11272 | 10543 |
| **7/17** | 11318 | 10638 |
| **8/17** | 11390 | 10587 |
| **9/17** | 11452 | 10593 |
| **10/17** | 11524 | 10580 |
| **12/17** | 11605 | 10628 |
| **1/18** | 11685 | 10506 |
| **2/18** | 11497 | 10406 |
| **3/18** | 11479 | 10473 |
| **4/18** | 11488 | 10395 |
| **5/18** | 11551 | 10469 |
| **6/18** | 11569 | 10456 |
| **7/18** | 11676 | 10459 |
| **8/18** | 11757 | 10526 |
| **9/18** | 11741 | 10458 |
| **10/18** | 11482 | 10376 |
| **11/18** | 11549 | 10438 |
| **12/18** | 11376 | 10629 |
| **1/19** | 11741 | 10742 |
| **2/19** | 11846 | 10736 |
| **3/19** | 12009 | 10942 |
| **4/19** | 12153 | 10945 |
| **5/19** | 12067 | 11139 |
| **6/19** | 12345 | 11279 |
| **7/19** | 12422 | 11304 |
| **8/19** | 12508 | 11597 |
| **9/19** | 12576 | 11535 |
| **10/19** | 12658 | 11570 |
| **11/19** | 12760 | 11564 |
| **12/19** | 12883 | 11556 |
| **1/20** | 12965 | 11778 |
| **2/20** | 12699 | 11990 |
| **3/20** | 11767 | 11920 |
| **4/20** | 12320 | 12132 |
| **5/20** | 12555 | 12188 |
| **6/20** | 12689 | 12265 |
| **7/20** | 13037 | 12448 |
| **8/20** | 13211 | 12348 |
| **9/20** | 13086 | 12341 |
| **10/20** | 13022 | 12286 |
| **11/20** | 13572 | 12406 |
| **12/20** | 13820 | 12423 |
| **1/21** | 13744 | 12334 |
| **2/21** | 13798 | 12156 |
| **3/21** | 13928 | 12005 |
| **4/21** | 14241 | 12099 |
| **5/21** | 14338 | 12139 |
| **6/21** | 14467 | 12224 |
| **7/21** | 14607 | 12361 |
| **8/21** | 14705 | 12337 |
| **9/21** | 14446 | 12230 |
| **10/21** | 14704 | 12227 |
| **11/21** | 14536 | 12263 |
| **12/21** | 14772 | 12232 |
| **1/22** | 14379 | 11968 |
| **2/22** | 14121 | 11835 |
| **3/22** | 14054 | 11506 |
| **4/22** | 13414 | 11069 |
| **5/22** | 13493 | 11141 |
| **6/22** | 13448 | 11234 |
| **7/22** | 13089 | 10917 |
| **8/22** | 12495 | 10310 |
| **9/22** | 13012 | 10689 |
| **12/22** | 12835 | 10641 |
| **1/23** | 13353 | 10968 |
| **2/23** | 13025 | 10684 |
| **3/23** | 13239 | 10956 |
| **4/23** | 13353 | 11022 |
| **5/23** | 13227 | 10902 |
| **6/23** | 13391 | 10863 |
| **7/23** | 13517 | 10856 |
| **8/23** | 13391 | 10786 |
| **9/23** | 13032 | 10512 |
| **10/23** | 12797 | 10346 |
| **11/23** | 13502 | 10815 |
| **12/23** | 14038 | 11229 |
| **1/24** | 14077 | 11198 |
| **2/24** | 14142 | 11040 |
| **3/24** | 14364 | 11142 |
| **4/24** | 13998 | 10860 |
| **5/24** | 14312 | 11044 |
| **6/24** | 14469 | 11149 |
| **7/24** | 14769 | 11409 |
| **8/24** | 15030 | 11573 |
| **9/24** | 15246 | 11728 |
| **10/24** | 14963 | 11437 |
| **11/24** | 15286 | 11558 |
| **12/24** | 14977 | 11369 |
| **1/25** | 15206 | 11430 |
| **2/25** | 15381 | 11681 |
| **3/25** | 15192 | 11685 |
| **4/25** | 15206 | 11731 |
| **5/25** | 15367 | 11647 |
| **6/25** | 15704 | 11826 |
| **7/25** | 15744 | 11795 |
| **8/25** | 16000 | 11936 |
| **9/25** | 16260 | 12067 |
| **10/25** | 16343 | 12142 |
| **11/25** | 16455 | 12217 |
| **12/25** | 16469 | 12199 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 9.96% | 3.57% | 5.12% |
| Bloomberg US Aggregate Index | 7.30% | -0.36% | 2.01% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Bloomberg US Aggregate Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Fund uses a blended benchmark, SAM Flexible Income Blended Index. The largest component of the blended benchmark is included as an additional index for the Fund to show how the Fund's performance compares with returns of indices of funds with similar investment objectives. The weightings for SAM Flexible Income Blended Index are as follows: 75% Bloomberg US Aggregate Index, 20% Russell 3000 Index, and 5% MSCI EAFE Index NTR. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$115,850

* Total Number of Portfolio Holdings33

* Portfolio Turnover Rate 27.7%

* Total Advisory Fees Paid (amount in thousands)$273

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 99.91% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | 0.09% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Fixed Income Funds | 65.90% |
| Domestic Equity Funds | 17.98% |
| International Equity Funds | 7.39% |
| Money Market Funds | 6.75% |
| Alternative Funds | 1.15% |
| Specialty Funds | 0.74% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | 0.09% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC32AR1-0

# Class 2

# SAM Flexible Income Portfolio
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about SAM Flexible Income Portfolio (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $52 | 0.50% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide a high level of total return. The Fund operates as a fund of funds and invests principally in funds of Principal Funds, Inc., Principal Variable Contracts Funds, Inc., and Principal Exchange-Traded Funds ("Underlying Funds"). The Fund typically allocates its assets among Underlying Funds in accordance with its outlook for the economy, the financial markets, and the relative market valuations of the Underlying Funds. The Fund typically invests 55-95% of its assets in fixed-income funds, 5-45% in equity funds, and up to 20% in specialty funds. The asset class diversification is designed to moderate overall price volatility and cushion severe losses in any one investment sector. The Fund's allocation in developed ex.-U.S. equities, which outperformed their U.S. counterparts, was the largest positive contributor to performance for the year. In addition, the Fund's allocation to emerging market debt, which outperformed core fixed income, aided performance for the year. Lastly, security selection in emerging market debt positively contributed to performance for the year. The Fund's allocation in U.S. large cap value equities, which underperformed their growth counterparts, was the largest detractor from performance for the year. In addition, the Fund's allocation in U.S. mid cap equities, which underperformed their large cap counterparts, hindered performance for the year. Lastly, security selection in U.S. mega cap equities negatively contributed to performance for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i6bbd3fe8ce6749a99e71dd83.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 2 Shares at net asset value $16,060** | **Bloomberg US Aggregate Index $12,199** |
| **12/15** | 10000 | 10000 |
| **1/16** | 9885 | 10138 |
| **2/16** | 9893 | 10210 |
| **3/16** | 10205 | 10303 |
| **4/16** | 10312 | 10343 |
| **5/16** | 10362 | 10345 |
| **6/16** | 10477 | 10531 |
| **7/16** | 10649 | 10598 |
| **8/16** | 10699 | 10586 |
| **9/16** | 10716 | 10580 |
| **10/16** | 10630 | 10499 |
| **11/16** | 10569 | 10250 |
| **12/16** | 10673 | 10265 |
| **1/17** | 10794 | 10285 |
| **2/17** | 10933 | 10354 |
| **3/17** | 11019 | 10428 |
| **4/17** | 11106 | 10509 |
| **5/17** | 11114 | 10498 |
| **6/17** | 11227 | 10543 |
| **7/17** | 11271 | 10638 |
| **8/17** | 11334 | 10587 |
| **9/17** | 11397 | 10593 |
| **10/17** | 11469 | 10580 |
| **12/17** | 11541 | 10628 |
| **1/18** | 11631 | 10506 |
| **2/18** | 11433 | 10406 |
| **3/18** | 11415 | 10473 |
| **4/18** | 11424 | 10395 |
| **5/18** | 11478 | 10469 |
| **6/18** | 11505 | 10456 |
| **7/18** | 11595 | 10459 |
| **8/18** | 11685 | 10526 |
| **9/18** | 11663 | 10458 |
| **10/18** | 11393 | 10376 |
| **11/18** | 11461 | 10438 |
| **12/18** | 11288 | 10629 |
| **1/19** | 11653 | 10742 |
| **2/19** | 11759 | 10736 |
| **3/19** | 11913 | 10942 |
| **4/19** | 12057 | 10945 |
| **5/19** | 11970 | 11139 |
| **6/19** | 12240 | 11279 |
| **7/19** | 12307 | 11304 |
| **8/19** | 12393 | 11597 |
| **9/19** | 12454 | 11535 |
| **10/19** | 12547 | 11570 |
| **11/19** | 12629 | 11564 |
| **12/19** | 12752 | 11556 |
| **1/20** | 12834 | 11778 |
| **2/20** | 12567 | 11990 |
| **3/20** | 11634 | 11920 |
| **4/20** | 12188 | 12132 |
| **5/20** | 12413 | 12188 |
| **6/20** | 12547 | 12265 |
| **7/20** | 12895 | 12448 |
| **8/20** | 13059 | 12348 |
| **9/20** | 12937 | 12341 |
| **10/20** | 12861 | 12286 |
| **11/20** | 13411 | 12406 |
| **12/20** | 13648 | 12423 |
| **1/21** | 13573 | 12334 |
| **2/21** | 13626 | 12156 |
| **3/21** | 13745 | 12005 |
| **4/21** | 14047 | 12099 |
| **5/21** | 14144 | 12139 |
| **6/21** | 14273 | 12224 |
| **7/21** | 14413 | 12361 |
| **8/21** | 14500 | 12337 |
| **9/21** | 14249 | 12230 |
| **10/21** | 14495 | 12227 |
| **11/21** | 14316 | 12263 |
| **12/21** | 14551 | 12232 |
| **1/22** | 14170 | 11968 |
| **2/22** | 13902 | 11835 |
| **3/22** | 13834 | 11506 |
| **4/22** | 13208 | 11069 |
| **5/22** | 13275 | 11141 |
| **6/22** | 13230 | 11234 |
| **7/22** | 12872 | 10917 |
| **8/22** | 12291 | 10310 |
| **9/22** | 12794 | 10689 |
| **12/22** | 12606 | 10641 |
| **1/23** | 13109 | 10968 |
| **2/23** | 12794 | 10684 |
| **3/23** | 12996 | 10956 |
| **4/23** | 13109 | 11022 |
| **5/23** | 12983 | 10902 |
| **6/23** | 13147 | 10863 |
| **7/23** | 13272 | 10856 |
| **8/23** | 13147 | 10786 |
| **9/23** | 12779 | 10512 |
| **10/23** | 12546 | 10346 |
| **11/23** | 13234 | 10815 |
| **12/23** | 13766 | 11229 |
| **1/24** | 13792 | 11198 |
| **2/24** | 13857 | 11040 |
| **3/24** | 14078 | 11142 |
| **4/24** | 13714 | 10860 |
| **5/24** | 14026 | 11044 |
| **6/24** | 14156 | 11149 |
| **7/24** | 14455 | 11409 |
| **8/24** | 14714 | 11573 |
| **9/24** | 14919 | 11728 |
| **10/24** | 14638 | 11437 |
| **11/24** | 14945 | 11558 |
| **12/24** | 14651 | 11369 |
| **1/25** | 14865 | 11430 |
| **2/25** | 15039 | 11681 |
| **3/25** | 14852 | 11685 |
| **4/25** | 14852 | 11731 |
| **5/25** | 15012 | 11647 |
| **6/25** | 15333 | 11826 |
| **7/25** | 15373 | 11795 |
| **8/25** | 15626 | 11936 |
| **9/25** | 15867 | 12067 |
| **10/25** | 15949 | 12142 |
| **11/25** | 16046 | 12217 |
| **12/25** | 16060 | 12199 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 2 Shares | 9.61% | 3.31% | 4.85% |
| Bloomberg US Aggregate Index | 7.30% | -0.36% | 2.01% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Bloomberg US Aggregate Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Fund uses a blended benchmark, SAM Flexible Income Blended Index. The largest component of the blended benchmark is included as an additional index for the Fund to show how the Fund's performance compares with returns of indices of funds with similar investment objectives. The weightings for SAM Flexible Income Blended Index are as follows: 75% Bloomberg US Aggregate Index, 20% Russell 3000 Index, and 5% MSCI EAFE Index NTR. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$115,850

* Total Number of Portfolio Holdings33

* Portfolio Turnover Rate 27.7%

* Total Advisory Fees Paid (amount in thousands)$273

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 99.91% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | 0.09% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Fixed Income Funds | 65.90% |
| Domestic Equity Funds | 17.98% |
| International Equity Funds | 7.39% |
| Money Market Funds | 6.75% |
| Alternative Funds | 1.15% |
| Specialty Funds | 0.74% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | 0.09% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC32AR2-0

# Class 1

# SAM Strategic Growth Portfolio
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about SAM Strategic Growth Portfolio (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $26 | 0.24% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide long-term capital appreciation. The Fund operates as a fund of funds and invests principally in funds of Principal Funds, Inc., Principal Variable Contracts Funds, Inc., and Principal Exchange-Traded Funds ("Underlying Funds"). The Fund typically allocates its assets among Underlying Funds in accordance with its outlook for the economy, the financial markets, and the relative market valuations of the Underlying Funds. The Fund typically invests 75-100% in equity funds and up to 20% specialty funds. The asset class diversification is designed to moderate overall price volatility and cushion severe losses in any one investment sector. The Fund's allocation in developed ex.-U.S. equities, which outperformed their U.S. counterparts, was the largest positive contributor to performance for the year. In addition, the Fund's allocation to emerging market equities, which outperformed their developed ex-U.S. counterparts, aided performance for the year. Lastly, the Fund's allocation in developed ex.-U.S. small cap equities, which outperformed their larger cap developed ex-U.S. counterparts, positively contributed to performance for the year. The Fund's allocation in U.S. large cap value equities, which underperformed their growth counterparts, was the largest detractor from performance for the year. In addition, security selection in U.S. large cap growth equities hindered performance for the year. Lastly, security selection in U.S. mid cap equities negatively contributed to performance for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i2e9536839c944c451936266a.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 1 Shares at net asset value $28,293** | **Russell 3000 Index $38,012** |
| **12/15** | 10000 | 10000 |
| **1/16** | 9465 | 9436 |
| **2/16** | 9380 | 9433 |
| **3/16** | 10000 | 10097 |
| **4/16** | 10043 | 10159 |
| **5/16** | 10160 | 10341 |
| **6/16** | 10150 | 10362 |
| **7/16** | 10513 | 10774 |
| **8/16** | 10546 | 10801 |
| **9/16** | 10598 | 10818 |
| **10/16** | 10329 | 10584 |
| **11/16** | 10466 | 11058 |
| **12/16** | 10615 | 11274 |
| **1/17** | 10901 | 11486 |
| **2/17** | 11199 | 11913 |
| **3/17** | 11457 | 12047 |
| **4/17** | 11623 | 12171 |
| **5/17** | 11703 | 12280 |
| **6/17** | 12007 | 12512 |
| **7/17** | 12102 | 12536 |
| **8/17** | 12377 | 12842 |
| **9/17** | 12592 | 13122 |
| **10/17** | 12825 | 13521 |
| **12/17** | 12974 | 13656 |
| **1/18** | 13583 | 14375 |
| **2/18** | 13028 | 13846 |
| **3/18** | 12896 | 13568 |
| **4/18** | 12956 | 13619 |
| **5/18** | 13075 | 14004 |
| **6/18** | 13010 | 14095 |
| **7/18** | 13362 | 14563 |
| **8/18** | 13500 | 15074 |
| **9/18** | 13492 | 15099 |
| **10/18** | 12523 | 13988 |
| **11/18** | 12756 | 14268 |
| **12/18** | 11858 | 12940 |
| **1/19** | 12782 | 14051 |
| **2/19** | 13111 | 14545 |
| **3/19** | 13311 | 14757 |
| **4/19** | 13776 | 15346 |
| **5/19** | 13098 | 14353 |
| **6/19** | 13873 | 15361 |
| **7/19** | 13970 | 15590 |
| **8/19** | 13770 | 15272 |
| **9/19** | 14020 | 15540 |
| **10/19** | 14331 | 15875 |
| **11/19** | 14656 | 16478 |
| **12/19** | 15113 | 16954 |
| **1/20** | 15023 | 16935 |
| **2/20** | 13888 | 15549 |
| **3/20** | 11772 | 13410 |
| **4/20** | 13072 | 15187 |
| **5/20** | 13681 | 15999 |
| **6/20** | 14041 | 16364 |
| **7/20** | 14857 | 17294 |
| **8/20** | 15624 | 18546 |
| **9/20** | 15182 | 17871 |
| **10/20** | 14944 | 17485 |
| **11/20** | 16639 | 19613 |
| **12/20** | 17440 | 20495 |
| **1/21** | 17289 | 20404 |
| **2/21** | 17888 | 21042 |
| **3/21** | 18429 | 21796 |
| **4/21** | 19331 | 22919 |
| **5/21** | 19569 | 23024 |
| **6/21** | 19894 | 23592 |
| **7/21** | 20081 | 23991 |
| **8/21** | 20492 | 24675 |
| **9/21** | 19624 | 23568 |
| **10/21** | 20636 | 25161 |
| **11/21** | 20115 | 24778 |
| **12/21** | 20904 | 25754 |
| **1/22** | 19765 | 24239 |
| **2/22** | 19111 | 23628 |
| **3/22** | 19468 | 24395 |
| **4/22** | 17868 | 22206 |
| **5/22** | 18017 | 22176 |
| **6/22** | 17890 | 22227 |
| **7/22** | 17176 | 21398 |
| **8/22** | 16574 | 21005 |
| **9/22** | 17820 | 22102 |
| **12/22** | 16978 | 20808 |
| **1/23** | 18163 | 22241 |
| **2/23** | 17596 | 21721 |
| **3/23** | 17966 | 22302 |
| **4/23** | 18267 | 22539 |
| **5/23** | 18069 | 22627 |
| **6/23** | 19169 | 24172 |
| **7/23** | 19787 | 25039 |
| **8/23** | 19375 | 24555 |
| **9/23** | 18528 | 23386 |
| **10/23** | 18058 | 22766 |
| **11/23** | 19695 | 24888 |
| **12/23** | 20689 | 26209 |
| **1/24** | 20861 | 26499 |
| **2/24** | 21766 | 27933 |
| **3/24** | 22444 | 28835 |
| **4/24** | 21621 | 27566 |
| **5/24** | 22489 | 28868 |
| **6/24** | 22842 | 29762 |
| **7/24** | 23330 | 30315 |
| **8/24** | 23872 | 30975 |
| **9/24** | 24302 | 31616 |
| **10/24** | 23900 | 31384 |
| **11/24** | 25143 | 33471 |
| **12/24** | 24211 | 32448 |
| **1/25** | 25125 | 33473 |
| **2/25** | 24915 | 32831 |
| **3/25** | 23919 | 30916 |
| **4/25** | 23818 | 30709 |
| **5/25** | 25006 | 32655 |
| **6/25** | 26039 | 34314 |
| **7/25** | 26313 | 35070 |
| **8/25** | 26962 | 35881 |
| **9/25** | 27694 | 37120 |
| **10/25** | 27924 | 37915 |
| **11/25** | 28133 | 38019 |
| **12/25** | 28293 | 38012 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 16.86% | 10.16% | 10.96% |
| Russell 3000 Index | 17.15% | 13.15% | 14.29% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Russell 3000 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Fund uses a blended benchmark, SAM Strategic Growth Blended Index. The largest component of the blended benchmark is included as an additional index for the Fund to show how the Fund's performance compares with returns of indices of funds with similar investment objectives. The weightings for SAM Strategic Growth Blended Index are as follows: 70% Russell 3000 Index, 25% MSCI EAFE Index NTR, and 5% Bloomberg US Aggregate Index. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$491,780

* Total Number of Portfolio Holdings22

* Portfolio Turnover Rate 49.8%

* Total Advisory Fees Paid (amount in thousands)$1,061

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 100.03% |
| Other Assets and Liabilities | (0.03)% |
| Total Net Assets | 100.00% |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Domestic Equity Funds | 61.77% |
| International Equity Funds | 33.90% |
| Specialty Funds | 1.69% |
| Fixed Income Funds | 0.99% |
| Money Market Funds | 0.92% |
| Alternative Funds | 0.76% |
| Other Assets and Liabilities | (0.03)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC33AR1-0

# Class 2

# SAM Strategic Growth Portfolio
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about SAM Strategic Growth Portfolio (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $53 | 0.49% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide long-term capital appreciation. The Fund operates as a fund of funds and invests principally in funds of Principal Funds, Inc., Principal Variable Contracts Funds, Inc., and Principal Exchange-Traded Funds ("Underlying Funds"). The Fund typically allocates its assets among Underlying Funds in accordance with its outlook for the economy, the financial markets, and the relative market valuations of the Underlying Funds. The Fund typically invests 75-100% in equity funds and up to 20% specialty funds. The asset class diversification is designed to moderate overall price volatility and cushion severe losses in any one investment sector. The Fund's allocation in developed ex.-U.S. equities, which outperformed their U.S. counterparts, was the largest positive contributor to performance for the year. In addition, the Fund's allocation to emerging market equities, which outperformed their developed ex-U.S. counterparts, aided performance for the year. Lastly, the Fund's allocation in developed ex.-U.S. small cap equities, which outperformed their larger cap developed ex-U.S. counterparts, positively contributed to performance for the year. The Fund's allocation in U.S. large cap value equities, which underperformed their growth counterparts, was the largest detractor from performance for the year. In addition, security selection in U.S. large cap growth equities hindered performance for the year. Lastly, security selection in U.S. mid cap equities negatively contributed to performance for the year.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i3e2d7b92cbdc2bed02e30d45.jpg)

---

| | | |
|:---|:---|:---|
| | **Class 2 Shares at net asset value $27,600** | **Russell 3000 Index $38,012** |
| **12/15** | 10000 | 10000 |
| **1/16** | 9465 | 9436 |
| **2/16** | 9378 | 9433 |
| **3/16** | 9995 | 10097 |
| **4/16** | 10038 | 10159 |
| **5/16** | 10157 | 10341 |
| **6/16** | 10141 | 10362 |
| **7/16** | 10497 | 10774 |
| **8/16** | 10533 | 10801 |
| **9/16** | 10585 | 10818 |
| **10/16** | 10313 | 10584 |
| **11/16** | 10446 | 11058 |
| **12/16** | 10590 | 11274 |
| **1/17** | 10879 | 11486 |
| **2/17** | 11168 | 11913 |
| **3/17** | 11422 | 12047 |
| **4/17** | 11584 | 12171 |
| **5/17** | 11659 | 12280 |
| **6/17** | 11966 | 12512 |
| **7/17** | 12054 | 12536 |
| **8/17** | 12325 | 12842 |
| **9/17** | 12535 | 13122 |
| **10/17** | 12764 | 13521 |
| **12/17** | 12915 | 13656 |
| **1/18** | 13516 | 14375 |
| **2/18** | 12963 | 13846 |
| **3/18** | 12830 | 13568 |
| **4/18** | 12885 | 13619 |
| **5/18** | 12999 | 14004 |
| **6/18** | 12933 | 14095 |
| **7/18** | 13276 | 14563 |
| **8/18** | 13414 | 15074 |
| **9/18** | 13401 | 15099 |
| **10/18** | 12439 | 13988 |
| **11/18** | 12666 | 14268 |
| **12/18** | 11770 | 12940 |
| **1/19** | 12692 | 14051 |
| **2/19** | 13011 | 14545 |
| **3/19** | 13206 | 14757 |
| **4/19** | 13667 | 15346 |
| **5/19** | 12991 | 14353 |
| **6/19** | 13758 | 15361 |
| **7/19** | 13849 | 15590 |
| **8/19** | 13648 | 15272 |
| **9/19** | 13893 | 15540 |
| **10/19** | 14192 | 15875 |
| **11/19** | 14518 | 16478 |
| **12/19** | 14963 | 16954 |
| **1/20** | 14873 | 16935 |
| **2/20** | 13747 | 15549 |
| **3/20** | 11648 | 13410 |
| **4/20** | 12934 | 15187 |
| **5/20** | 13531 | 15999 |
| **6/20** | 13886 | 16364 |
| **7/20** | 14692 | 17294 |
| **8/20** | 15443 | 18546 |
| **9/20** | 15005 | 17871 |
| **10/20** | 14766 | 17485 |
| **11/20** | 16439 | 19613 |
| **12/20** | 17228 | 20495 |
| **1/21** | 17068 | 20404 |
| **2/21** | 17662 | 21042 |
| **3/21** | 18190 | 21796 |
| **4/21** | 19081 | 22919 |
| **5/21** | 19305 | 23024 |
| **6/21** | 19623 | 23592 |
| **7/21** | 19804 | 23991 |
| **8/21** | 20203 | 24675 |
| **9/21** | 19348 | 23568 |
| **10/21** | 20340 | 25161 |
| **11/21** | 19825 | 24778 |
| **12/21** | 20593 | 25754 |
| **1/22** | 19467 | 24239 |
| **2/22** | 18826 | 23628 |
| **3/22** | 19169 | 24395 |
| **4/22** | 17588 | 22206 |
| **5/22** | 17738 | 22176 |
| **6/22** | 17603 | 22227 |
| **7/22** | 16895 | 21398 |
| **8/22** | 16289 | 21005 |
| **9/22** | 17520 | 22102 |
| **12/22** | 16685 | 20808 |
| **1/23** | 17847 | 22241 |
| **2/23** | 17288 | 21721 |
| **3/23** | 17640 | 22302 |
| **4/23** | 17933 | 22539 |
| **5/23** | 17744 | 22627 |
| **6/23** | 18819 | 24172 |
| **7/23** | 19413 | 25039 |
| **8/23** | 19009 | 24555 |
| **9/23** | 18169 | 23386 |
| **10/23** | 17708 | 22766 |
| **11/23** | 19309 | 24888 |
| **12/23** | 20285 | 26209 |
| **1/24** | 20448 | 26499 |
| **2/24** | 21326 | 27933 |
| **3/24** | 21986 | 28835 |
| **4/24** | 21172 | 27566 |
| **5/24** | 22022 | 28868 |
| **6/24** | 22366 | 29762 |
| **7/24** | 22836 | 30315 |
| **8/24** | 23369 | 30975 |
| **9/24** | 23778 | 31616 |
| **10/24** | 23377 | 31384 |
| **11/24** | 24591 | 33471 |
| **12/24** | 23669 | 32448 |
| **1/25** | 24563 | 33473 |
| **2/25** | 24353 | 32831 |
| **3/25** | 23368 | 30916 |
| **4/25** | 23277 | 30709 |
| **5/25** | 24426 | 32655 |
| **6/25** | 25430 | 34314 |
| **7/25** | 25695 | 35070 |
| **8/25** | 26324 | 35881 |
| **9/25** | 27032 | 37120 |
| **10/25** | 27241 | 37915 |
| **11/25** | 27450 | 38019 |
| **12/25** | 27600 | 38012 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 2 Shares | 16.61% | 9.88% | 10.69% |
| Russell 3000 Index | 17.15% | 13.15% | 14.29% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Russell 3000 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Fund uses a blended benchmark, SAM Strategic Growth Blended Index. The largest component of the blended benchmark is included as an additional index for the Fund to show how the Fund's performance compares with returns of indices of funds with similar investment objectives. The weightings for SAM Strategic Growth Blended Index are as follows: 70% Russell 3000 Index, 25% MSCI EAFE Index NTR, and 5% Bloomberg US Aggregate Index. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$491,780

* Total Number of Portfolio Holdings22

* Portfolio Turnover Rate 49.8%

* Total Advisory Fees Paid (amount in thousands)$1,061

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 100.03% |
| Other Assets and Liabilities | (0.03)% |
| Total Net Assets | 100.00% |

---

#### Fund Type Allocation

---

| | |
|:---|:---|
| **Fund Type** | **Percent of Net Assets** |
| Domestic Equity Funds | 61.77% |
| International Equity Funds | 33.90% |
| Specialty Funds | 1.69% |
| Fixed Income Funds | 0.99% |
| Money Market Funds | 0.92% |
| Alternative Funds | 0.76% |
| Other Assets and Liabilities | (0.03)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC33AR2-0

# Class 1

# Short-Term Income Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about Short-Term Income Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $43 | 0.42% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks as high a level of current income as is consistent with prudent investment management and stability of principal. The Fund seeks to achieve its investment objective by investing in a broad range of high-quality, fixed-income securities. The Fund invests primarily in high-quality short-term bonds and other fixed-income securities that, at the time of purchase, are rated BBB- or higher by S&P Global Ratings or Baa3 or higher by Moody's Investors Service, Inc. The Fund's investments also include corporate securities, government securities, mortgage-backed and asset-backed securities ("ABS"), foreign securities, and derivatives. During the 12-month period ending December 31, 2025, the Fund's investments outperformed the Bloomberg Credit 1-3 Year Index ("Index"). Top contributors to performance included duration and yield curve positioning, an out-of-Index allocation to commercial mortgage-backed securities, an underweight position in foreign government securities, and security selection in banking. Primary detractors to performance included out-of-Index allocations to other ABS, auto ABS, and U.S. Treasury securities, as well as an underweight position to banking.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](ic618404831deffa7054c093f.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 1 Shares at net asset value $12,829** | **Bloomberg US Aggregate Index $12,199** | **Bloomberg Credit 1-3 Year Index $12,972** |
| **12/15** | 10000 | 10000 | 10000 |
| **1/16** | 10039 | 10138 | 10033 |
| **2/16** | 10039 | 10210 | 10038 |
| **3/16** | 10118 | 10303 | 10114 |
| **4/16** | 10157 | 10343 | 10149 |
| **5/16** | 10157 | 10345 | 10148 |
| **6/16** | 10197 | 10531 | 10213 |
| **7/16** | 10236 | 10598 | 10229 |
| **8/16** | 10254 | 10586 | 10229 |
| **9/16** | 10254 | 10580 | 10239 |
| **10/16** | 10254 | 10499 | 10241 |
| **11/16** | 10214 | 10250 | 10198 |
| **12/16** | 10214 | 10265 | 10211 |
| **1/17** | 10254 | 10285 | 10240 |
| **2/17** | 10294 | 10354 | 10269 |
| **3/17** | 10334 | 10428 | 10304 |
| **4/17** | 10375 | 10509 | 10328 |
| **5/17** | 10375 | 10498 | 10333 |
| **6/17** | 10415 | 10543 | 10370 |
| **7/17** | 10457 | 10638 | 10391 |
| **8/17** | 10416 | 10587 | 10388 |
| **9/17** | 10457 | 10593 | 10394 |
| **10/17** | 10416 | 10580 | 10371 |
| **12/17** | 10457 | 10628 | 10380 |
| **1/18** | 10416 | 10506 | 10361 |
| **2/18** | 10416 | 10406 | 10341 |
| **3/18** | 10416 | 10473 | 10348 |
| **4/18** | 10416 | 10395 | 10352 |
| **5/18** | 10457 | 10469 | 10391 |
| **6/18** | 10457 | 10456 | 10392 |
| **7/18** | 10457 | 10459 | 10412 |
| **8/18** | 10498 | 10526 | 10453 |
| **9/18** | 10480 | 10458 | 10456 |
| **10/18** | 10480 | 10376 | 10460 |
| **11/18** | 10522 | 10438 | 10474 |
| **12/18** | 10564 | 10629 | 10550 |
| **1/19** | 10648 | 10742 | 10620 |
| **2/19** | 10648 | 10736 | 10650 |
| **3/19** | 10731 | 10942 | 10727 |
| **4/19** | 10773 | 10945 | 10758 |
| **5/19** | 10857 | 11139 | 10822 |
| **6/19** | 10899 | 11279 | 10892 |
| **7/19** | 10899 | 11304 | 10898 |
| **8/19** | 10983 | 11597 | 10985 |
| **9/19** | 10974 | 11535 | 10993 |
| **10/19** | 11017 | 11570 | 11036 |
| **11/19** | 11017 | 11564 | 11044 |
| **12/19** | 11060 | 11556 | 11079 |
| **1/20** | 11146 | 11778 | 11141 |
| **2/20** | 11232 | 11990 | 11214 |
| **3/20** | 10974 | 11920 | 11002 |
| **4/20** | 11189 | 12132 | 11198 |
| **5/20** | 11275 | 12188 | 11299 |
| **6/20** | 11318 | 12265 | 11363 |
| **7/20** | 11362 | 12448 | 11408 |
| **8/20** | 11405 | 12348 | 11426 |
| **9/20** | 11388 | 12341 | 11423 |
| **10/20** | 11388 | 12286 | 11439 |
| **11/20** | 11432 | 12406 | 11467 |
| **12/20** | 11432 | 12423 | 11487 |
| **1/21** | 11432 | 12334 | 11492 |
| **2/21** | 11388 | 12156 | 11495 |
| **3/21** | 11388 | 12005 | 11485 |
| **4/21** | 11432 | 12099 | 11503 |
| **5/21** | 11432 | 12139 | 11524 |
| **6/21** | 11432 | 12224 | 11511 |
| **7/21** | 11432 | 12361 | 11530 |
| **8/21** | 11432 | 12337 | 11533 |
| **9/21** | 11440 | 12230 | 11528 |
| **10/21** | 11395 | 12227 | 11489 |
| **11/21** | 11350 | 12263 | 11469 |
| **12/21** | 11350 | 12232 | 11467 |
| **1/22** | 11305 | 11968 | 11381 |
| **2/22** | 11216 | 11835 | 11324 |
| **3/22** | 11081 | 11506 | 11186 |
| **4/22** | 10991 | 11069 | 11108 |
| **5/22** | 11036 | 11141 | 11183 |
| **6/22** | 11036 | 11234 | 11170 |
| **7/22** | 10947 | 10917 | 11087 |
| **8/22** | 10777 | 10310 | 10918 |
| **9/22** | 10913 | 10689 | 11053 |
| **12/22** | 10959 | 10641 | 11078 |
| **1/23** | 11095 | 10968 | 11185 |
| **2/23** | 11050 | 10684 | 11108 |
| **3/23** | 11141 | 10956 | 11225 |
| **4/23** | 11186 | 11022 | 11282 |
| **5/23** | 11186 | 10902 | 11257 |
| **6/23** | 11186 | 10863 | 11237 |
| **7/23** | 11232 | 10856 | 11302 |
| **8/23** | 11277 | 10786 | 11333 |
| **9/23** | 11249 | 10512 | 11322 |
| **10/23** | 11249 | 10346 | 11350 |
| **11/23** | 11434 | 10815 | 11514 |
| **12/23** | 11573 | 11229 | 11663 |
| **1/24** | 11666 | 11198 | 11715 |
| **2/24** | 11619 | 11040 | 11688 |
| **3/24** | 11712 | 11142 | 11747 |
| **4/24** | 11666 | 10860 | 11719 |
| **5/24** | 11758 | 11044 | 11811 |
| **6/24** | 11804 | 11149 | 11870 |
| **7/24** | 11990 | 11409 | 12018 |
| **8/24** | 12082 | 11573 | 12132 |
| **9/24** | 12162 | 11728 | 12241 |
| **10/24** | 12114 | 11437 | 12181 |
| **11/24** | 12162 | 11558 | 12236 |
| **12/24** | 12162 | 11369 | 12258 |
| **1/25** | 12258 | 11430 | 12320 |
| **2/25** | 12354 | 11681 | 12406 |
| **3/25** | 12354 | 11685 | 12459 |
| **4/25** | 12450 | 11731 | 12536 |
| **5/25** | 12450 | 11647 | 12551 |
| **6/25** | 12545 | 11826 | 12642 |
| **7/25** | 12545 | 11795 | 12653 |
| **8/25** | 12689 | 11936 | 12765 |
| **9/25** | 12728 | 12067 | 12817 |
| **10/25** | 12728 | 12142 | 12860 |
| **11/25** | 12829 | 12217 | 12922 |
| **12/25** | 12829 | 12199 | 12972 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 5.48% | 2.33% | 2.52% |
| Bloomberg US Aggregate Index | 7.30% | -0.36% | 2.01% |
| Bloomberg Credit 1-3 Year Index | 5.82% | 2.46% | 2.64% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Bloomberg US Aggregate Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Bloomberg Credit 1-3 Year Index is included as an additional index for the Fund as it shows how the Fund's performance compares with the returns of an index of funds with similar investment objectives. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$133,192

* Total Number of Portfolio Holdings386

* Portfolio Turnover Rate 49.3%

* Total Advisory Fees Paid (amount in thousands)$516

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Bonds | 80.14% |
| U.S. Government & Government Agency Obligations | 15.51% |
| Investment Companies | 4.53% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | (0.18)% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Financial | 22.00% |
| Asset Backed Securities | 20.52% |
| Government | 15.49% |
| Mortgage Securities | 11.76% |
| Utilities | 5.87% |
| Energy | 4.79% |
| Money Market Funds | 4.53% |
| Consumer, Non-cyclical | 4.44% |
| Technology | 3.75% |
| Industrial | 3.19% |
| Communications | 2.93% |
| Consumer, Cyclical | 0.63% |
| Basic Materials | 0.28% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | (0.18)% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC34AR1-0

# Class 1

# SmallCap Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about SmallCap Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 1 | $90 | 0.84% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks long-term growth of capital. Under normal circumstances, the Fund invests at least 80% of its net assets in equity securities of companies with small market capitalizations. For this Fund, companies with small market capitalizations are those with market capitalizations within the range of companies comprising the Russell 2000<sup>®</sup> Index ("Index"). Those managing the Fund's investments seek to invest in securities of companies that they believe have improving and sustainable business fundamentals, rising investor expectations, and attractive relative valuations. The Fund's investments outperformed the Index over the year. Health care and financial sectors were key contributors to the Fund's performance during the year. The Fund's biotechnology holdings within the health care sector performed well amid favorable data releases and acquisition activity. The Fund's top biotechnology holding performed exceptionally well amid positive phase 2 trial results for its next potential drug pipeline, increasing confidence in future commercialization. Financials contributed positively through strong stock selection among regional banks. Despite a mixed interest-rate environment, select holdings delivered better-than-expected earnings and credit quality resilience. Materials and software sectors were key detractors from relative performance. In the materials sector, metals and mining companies were an area of underperformance primarily driven by the Fund's underweight position to precious metals stocks which performed well amid strong gold and silver prices. Weak performance in the Fund's paper packaging holdings also weighed on results amid weaker end market demand and elevated inventories. The Fund's vertically integrated software holdings underperformed amid the threat of artificial intelligence easily writing software to replace their software as a service offering, while cryptocurrency mining and quantum computing companies within the Index performed exceptionally well.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](ic3f94ecfbfc344ba7a920db8.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 1 Shares at net asset value $24,931** | **Russell 3000 Index $38,012** | **Russell 2000 Index $25,047** |
| **12/15** | 10000 | 10000 | 10000 |
| **1/16** | 9092 | 9436 | 9121 |
| **2/16** | 9070 | 9433 | 9120 |
| **3/16** | 9727 | 10097 | 9848 |
| **4/16** | 9756 | 10159 | 10003 |
| **5/16** | 10059 | 10341 | 10228 |
| **6/16** | 10155 | 10362 | 10222 |
| **7/16** | 10635 | 10774 | 10832 |
| **8/16** | 10766 | 10801 | 11023 |
| **9/16** | 10851 | 10818 | 11146 |
| **10/16** | 10411 | 10584 | 10616 |
| **11/16** | 11461 | 11058 | 11800 |
| **12/16** | 11739 | 11274 | 12131 |
| **1/17** | 11754 | 11486 | 12179 |
| **2/17** | 12024 | 11913 | 12414 |
| **3/17** | 12155 | 12047 | 12566 |
| **4/17** | 11785 | 12171 | 12311 |
| **5/17** | 12032 | 12280 | 12736 |
| **6/17** | 12140 | 12512 | 12831 |
| **7/17** | 11986 | 12536 | 12668 |
| **8/17** | 12614 | 12842 | 13458 |
| **9/17** | 12885 | 13122 | 13573 |
| **10/17** | 13241 | 13521 | 13964 |
| **12/17** | 13249 | 13656 | 13908 |
| **1/18** | 13675 | 14375 | 14271 |
| **2/18** | 13210 | 13846 | 13718 |
| **3/18** | 13373 | 13568 | 13896 |
| **4/18** | 13621 | 13619 | 14016 |
| **5/18** | 14419 | 14004 | 14867 |
| **6/18** | 14636 | 14095 | 14973 |
| **7/18** | 14745 | 14563 | 15234 |
| **8/18** | 15473 | 15074 | 15891 |
| **9/18** | 14870 | 15099 | 15509 |
| **10/18** | 13152 | 13988 | 13824 |
| **11/18** | 13540 | 14268 | 14044 |
| **12/18** | 11806 | 12940 | 12376 |
| **1/19** | 13284 | 14051 | 13768 |
| **2/19** | 13871 | 14545 | 14484 |
| **3/19** | 13672 | 14757 | 14181 |
| **4/19** | 14341 | 15346 | 14662 |
| **5/19** | 13160 | 14353 | 13522 |
| **6/19** | 14118 | 15361 | 14478 |
| **7/19** | 14234 | 15590 | 14561 |
| **8/19** | 13639 | 15272 | 13842 |
| **9/19** | 13972 | 15540 | 14130 |
| **10/19** | 14129 | 15875 | 14502 |
| **11/19** | 14698 | 16478 | 15099 |
| **12/19** | 15041 | 16954 | 15535 |
| **1/20** | 14845 | 16935 | 15037 |
| **2/20** | 13520 | 15549 | 13771 |
| **3/20** | 10449 | 13410 | 10779 |
| **4/20** | 12000 | 15187 | 12259 |
| **5/20** | 13050 | 15999 | 13057 |
| **6/20** | 13442 | 16364 | 13519 |
| **7/20** | 13874 | 17294 | 13893 |
| **8/20** | 14776 | 18546 | 14676 |
| **9/20** | 14600 | 17871 | 14185 |
| **10/20** | 14706 | 17485 | 14483 |
| **11/20** | 17070 | 19613 | 17152 |
| **12/20** | 18380 | 20495 | 18636 |
| **1/21** | 18849 | 20404 | 19573 |
| **2/21** | 20244 | 21042 | 20793 |
| **3/21** | 20840 | 21796 | 21002 |
| **4/21** | 21575 | 22919 | 21443 |
| **5/21** | 21586 | 23024 | 21487 |
| **6/21** | 22054 | 23592 | 21904 |
| **7/21** | 21479 | 23991 | 21113 |
| **8/21** | 22161 | 24675 | 21585 |
| **9/21** | 21561 | 23568 | 20949 |
| **10/21** | 22839 | 25161 | 21840 |
| **11/21** | 21616 | 24778 | 20930 |
| **12/21** | 22079 | 25754 | 21397 |
| **1/22** | 19976 | 24239 | 19337 |
| **2/22** | 20251 | 23628 | 19544 |
| **3/22** | 20350 | 24395 | 19787 |
| **4/22** | 18412 | 22206 | 17826 |
| **5/22** | 18456 | 22176 | 17853 |
| **6/22** | 18588 | 22227 | 18095 |
| **7/22** | 18291 | 21398 | 17725 |
| **8/22** | 18411 | 21005 | 17790 |
| **9/22** | 18760 | 22102 | 18206 |
| **12/22** | 17524 | 20808 | 17024 |
| **1/23** | 19284 | 22241 | 18684 |
| **2/23** | 19204 | 21721 | 18368 |
| **3/23** | 18532 | 22302 | 17491 |
| **4/23** | 18182 | 22539 | 17176 |
| **5/23** | 17833 | 22627 | 17017 |
| **6/23** | 19392 | 24172 | 18401 |
| **7/23** | 20373 | 25039 | 19526 |
| **8/23** | 19486 | 24555 | 18549 |
| **9/23** | 18183 | 23386 | 17457 |
| **10/23** | 16794 | 22766 | 16267 |
| **11/23** | 18425 | 24888 | 17739 |
| **12/23** | 20245 | 26209 | 19906 |
| **1/24** | 19800 | 26499 | 19132 |
| **2/24** | 20865 | 27933 | 20214 |
| **3/24** | 21795 | 28835 | 20938 |
| **4/24** | 20258 | 27566 | 19464 |
| **5/24** | 20986 | 28868 | 20440 |
| **6/24** | 20595 | 29762 | 20251 |
| **7/24** | 22011 | 30315 | 22309 |
| **8/24** | 21795 | 30975 | 21976 |
| **9/24** | 21827 | 31616 | 22129 |
| **10/24** | 21523 | 31384 | 21810 |
| **11/24** | 23359 | 33471 | 24202 |
| **12/24** | 21661 | 32448 | 22203 |
| **1/25** | 22641 | 33473 | 22785 |
| **2/25** | 21495 | 32831 | 21567 |
| **3/25** | 19811 | 30916 | 20099 |
| **4/25** | 19604 | 30709 | 19634 |
| **5/25** | 20529 | 32655 | 20683 |
| **6/25** | 21771 | 34314 | 21807 |
| **7/25** | 22268 | 35070 | 22185 |
| **8/25** | 23828 | 35881 | 23770 |
| **9/25** | 23985 | 37120 | 24510 |
| **10/25** | 24320 | 37915 | 24953 |
| **11/25** | 25397 | 38019 | 25193 |
| **12/25** | 24931 | 38012 | 25047 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 1 Shares | 15.10% | 6.29% | 9.57% |
| Russell 3000 Index | 17.15% | 13.15% | 14.29% |
| Russell 2000 Index | 12.81% | 6.09% | 9.62% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Russell 3000 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Russell 2000 Index is included as an additional index for the Fund as it shows how the Fund's performance compares with the returns of an index of funds with similar investment objectives. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$176,202

* Total Number of Portfolio Holdings117

* Portfolio Turnover Rate 37.0%

* Total Advisory Fees Paid (amount in thousands)$1,388

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Common Stocks | 100.08% |
| Investment Companies | 2.06% |
| Other Assets and Liabilities | (2.14)% |
| Total Net Assets | 100.00% |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Financial | 24.41% |
| Consumer, Non-cyclical | 24.24% |
| Industrial | 19.20% |
| Technology | 10.45% |
| Consumer, Cyclical | 9.18% |
| Energy | 5.18% |
| Basic Materials | 2.67% |
| Utilities | 2.51% |
| Communications | 2.24% |
| Money Market Funds | 2.06% |
| Other Assets and Liabilities | (2.14)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC35AR1-0

# Class 2

# SmallCap Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about SmallCap Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $118 | 1.10% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks long-term growth of capital. Under normal circumstances, the Fund invests at least 80% of its net assets in equity securities of companies with small market capitalizations. For this Fund, companies with small market capitalizations are those with market capitalizations within the range of companies comprising the Russell 2000<sup>®</sup> Index ("Index"). Those managing the Fund's investments seek to invest in securities of companies that they believe have improving and sustainable business fundamentals, rising investor expectations, and attractive relative valuations. The Fund's investments outperformed the Index over the year. Health care and financial sectors were key contributors to the Fund's performance during the year. The Fund's biotechnology holdings within the health care sector performed well amid favorable data releases and acquisition activity. The Fund's top biotechnology holding performed exceptionally well amid positive phase 2 trial results for its next potential drug pipeline, increasing confidence in future commercialization. Financials contributed positively through strong stock selection among regional banks. Despite a mixed interest-rate environment, select holdings delivered better-than-expected earnings and credit quality resilience. Materials and software sectors were key detractors from relative performance. In the materials sector, metals and mining companies were an area of underperformance primarily driven by the Fund's underweight position to precious metals stocks which performed well amid strong gold and silver prices. Weak performance in the Fund's paper packaging holdings also weighed on results amid weaker end market demand and elevated inventories. The Fund's vertically integrated software holdings underperformed amid the threat of artificial intelligence easily writing software to replace their software as a service offering, while cryptocurrency mining and quantum computing companies within the Index performed exceptionally well.

## How did the Fund perform over the last 10 years?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](id74de80edc38626095389e7d.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 2 Shares at net asset value $24,315** | **Russell 3000 Index $38,012** | **Russell 2000 Index $25,047** |
| **12/15** | 10000 | 10000 | 10000 |
| **1/16** | 9090 | 9436 | 9121 |
| **2/16** | 9068 | 9433 | 9120 |
| **3/16** | 9726 | 10097 | 9848 |
| **4/16** | 9749 | 10159 | 10003 |
| **5/16** | 10044 | 10341 | 10228 |
| **6/16** | 10148 | 10362 | 10222 |
| **7/16** | 10621 | 10774 | 10832 |
| **8/16** | 10742 | 10801 | 11023 |
| **9/16** | 10835 | 10818 | 11146 |
| **10/16** | 10395 | 10584 | 10616 |
| **11/16** | 11437 | 11058 | 11800 |
| **12/16** | 11715 | 11274 | 12131 |
| **1/17** | 11723 | 11486 | 12179 |
| **2/17** | 11986 | 11913 | 12414 |
| **3/17** | 12117 | 12047 | 12566 |
| **4/17** | 11746 | 12171 | 12311 |
| **5/17** | 11986 | 12280 | 12736 |
| **6/17** | 12094 | 12512 | 12831 |
| **7/17** | 11935 | 12536 | 12668 |
| **8/17** | 12561 | 12842 | 13458 |
| **9/17** | 12824 | 13122 | 13573 |
| **10/17** | 13180 | 13521 | 13964 |
| **12/17** | 13188 | 13656 | 13908 |
| **1/18** | 13605 | 14375 | 14271 |
| **2/18** | 13141 | 13846 | 13718 |
| **3/18** | 13304 | 13568 | 13896 |
| **4/18** | 13543 | 13619 | 14016 |
| **5/18** | 14332 | 14004 | 14867 |
| **6/18** | 14549 | 14095 | 14973 |
| **7/18** | 14649 | 14563 | 15234 |
| **8/18** | 15369 | 15074 | 15891 |
| **9/18** | 14767 | 15099 | 15509 |
| **10/18** | 13064 | 13988 | 13824 |
| **11/18** | 13443 | 14268 | 14044 |
| **12/18** | 11715 | 12940 | 12376 |
| **1/19** | 13179 | 14051 | 13768 |
| **2/19** | 13764 | 14545 | 14484 |
| **3/19** | 13566 | 14757 | 14181 |
| **4/19** | 14224 | 15346 | 14662 |
| **5/19** | 13048 | 14353 | 13522 |
| **6/19** | 13994 | 15361 | 14478 |
| **7/19** | 14109 | 15590 | 14561 |
| **8/19** | 13517 | 15272 | 13842 |
| **9/19** | 13848 | 15540 | 14130 |
| **10/19** | 13994 | 15875 | 14502 |
| **11/19** | 14551 | 16478 | 15099 |
| **12/19** | 14892 | 16954 | 15535 |
| **1/20** | 14697 | 16935 | 15037 |
| **2/20** | 13380 | 15549 | 13771 |
| **3/20** | 10345 | 13410 | 10779 |
| **4/20** | 11877 | 15187 | 12259 |
| **5/20** | 12911 | 15999 | 13057 |
| **6/20** | 13292 | 16364 | 13519 |
| **7/20** | 13721 | 17294 | 13893 |
| **8/20** | 14609 | 18546 | 14676 |
| **9/20** | 14429 | 17871 | 14185 |
| **10/20** | 14524 | 17485 | 14483 |
| **11/20** | 16871 | 19613 | 17152 |
| **12/20** | 18150 | 20495 | 18636 |
| **1/21** | 18615 | 20404 | 19573 |
| **2/21** | 19989 | 21042 | 20793 |
| **3/21** | 20570 | 21796 | 21002 |
| **4/21** | 21300 | 22919 | 21443 |
| **5/21** | 21300 | 23024 | 21487 |
| **6/21** | 21765 | 23592 | 21904 |
| **7/21** | 21183 | 23991 | 21113 |
| **8/21** | 21860 | 24675 | 21585 |
| **9/21** | 21252 | 23568 | 20949 |
| **10/21** | 22518 | 25161 | 21840 |
| **11/21** | 21296 | 24778 | 20930 |
| **12/21** | 21754 | 25754 | 21397 |
| **1/22** | 19680 | 24239 | 19337 |
| **2/22** | 19942 | 23628 | 19544 |
| **3/22** | 20040 | 24395 | 19787 |
| **4/22** | 18119 | 22206 | 17826 |
| **5/22** | 18163 | 22176 | 17853 |
| **6/22** | 18283 | 22227 | 18095 |
| **7/22** | 17988 | 21398 | 17725 |
| **8/22** | 18105 | 21005 | 17790 |
| **9/22** | 18438 | 22102 | 18206 |
| **12/22** | 17211 | 20808 | 17024 |
| **1/23** | 18958 | 22241 | 18684 |
| **2/23** | 18878 | 21721 | 18368 |
| **3/23** | 18198 | 22302 | 17491 |
| **4/23** | 17851 | 22539 | 17176 |
| **5/23** | 17518 | 22627 | 17017 |
| **6/23** | 19038 | 24172 | 18401 |
| **7/23** | 19984 | 25039 | 19526 |
| **8/23** | 19118 | 24555 | 18549 |
| **9/23** | 17833 | 23386 | 17457 |
| **10/23** | 16473 | 22766 | 16267 |
| **11/23** | 18073 | 24888 | 17739 |
| **12/23** | 19860 | 26209 | 19906 |
| **1/24** | 19407 | 26499 | 19132 |
| **2/24** | 20461 | 27933 | 20214 |
| **3/24** | 21354 | 28835 | 20938 |
| **4/24** | 19847 | 27566 | 19464 |
| **5/24** | 20554 | 28868 | 20440 |
| **6/24** | 20167 | 29762 | 20251 |
| **7/24** | 21541 | 30315 | 22309 |
| **8/24** | 21341 | 30975 | 21976 |
| **9/24** | 21347 | 31616 | 22129 |
| **10/24** | 21061 | 31384 | 21810 |
| **11/24** | 22860 | 33471 | 24202 |
| **12/24** | 21184 | 32448 | 22203 |
| **1/25** | 22138 | 33473 | 22785 |
| **2/25** | 21006 | 32831 | 21567 |
| **3/25** | 19371 | 30916 | 20099 |
| **4/25** | 19153 | 30709 | 19634 |
| **5/25** | 20052 | 32655 | 20683 |
| **6/25** | 21265 | 34314 | 21807 |
| **7/25** | 21756 | 35070 | 22185 |
| **8/25** | 23269 | 35881 | 23770 |
| **9/25** | 23411 | 37120 | 24510 |
| **10/25** | 23741 | 37915 | 24953 |
| **11/25** | 24788 | 38019 | 25193 |
| **12/25** | 24315 | 38012 | 25047 |

---

### **Average Annual Total Returns** 

---

| | | | |
|:---|:---|:---|:---|
| **Name** | **1-Year** | **5-Year** | **10-Year** |
| Class 2 Shares | 14.78% | 6.02% | 9.29% |
| Russell 3000 Index | 17.15% | 13.15% | 14.29% |
| Russell 2000 Index | 12.81% | 6.09% | 9.62% |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The Russell 3000 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The Russell 2000 Index is included as an additional index for the Fund as it shows how the Fund's performance compares with the returns of an index of funds with similar investment objectives. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$176,202

* Total Number of Portfolio Holdings117

* Portfolio Turnover Rate 37.0%

* Total Advisory Fees Paid (amount in thousands)$1,388

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Common Stocks | 100.08% |
| Investment Companies | 2.06% |
| Other Assets and Liabilities | (2.14)% |
| Total Net Assets | 100.00% |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Financial | 24.41% |
| Consumer, Non-cyclical | 24.24% |
| Industrial | 19.20% |
| Technology | 10.45% |
| Consumer, Cyclical | 9.18% |
| Energy | 5.18% |
| Basic Materials | 2.67% |
| Utilities | 2.51% |
| Communications | 2.24% |
| Money Market Funds | 2.06% |
| Other Assets and Liabilities | (2.14)% |
| Total Net Assets | 100.00% |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC35AR2-0

# Class 2

# U.S. LargeCap S&P 500 Index Buffer April Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about U.S. LargeCap S&P 500 Index Buffer April Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $101 | 0.95% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide investors with returns (before fees and expenses) based on the S&P 500 Price Return Index ("Index") while seeking to provide a buffer against the first 10% (prior to taking into account any fees and expenses of the Fund) of Index losses, over a twelve-month period beginning on April 1 and ending on March 31. The Fund invests at least 80% of its net assets in exchange-traded funds and options that reference the Index, which represents large capitalization U.S. equities without dividend returns. The Fund employs a defined outcome strategy that uses options to gain exposure to the Index while mitigating the first 10% decline in the Index. The Principal Variable Contracts U.S. LargeCap Buffer Funds are defined outcome investment solutions that are designed to offer limited downside protection, full upside participation up to 10%, and partial participation on any gains above 10%. The Fund uses a combination of ETFs and options to accomplish this objective. The out-of-the-money put, ETF holdings, and deep in-the-money call contributed to performance, while the at-the-money put and out-of-the-money call detracted from performance. Overall, performance since launch is in line with expectations. Note that intra-period performance may differ in an unpredictable way from full period performance.

## How did the Fund perform since inception?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i5484e2ef7a5c594f5cabe791.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 2 Shares at net asset value $14,964** | **S&P 500 Index $17,667** | **S&P 500 Price Return Index $16,996** |
| **3/23** | 10000 | 10000 | 10000 |
| **3/23** | 10000 | 10204 | 10202 |
| **4/23** | 10120 | 10363 | 10352 |
| **5/23** | 10130 | 10408 | 10377 |
| **6/23** | 10640 | 11096 | 11049 |
| **7/23** | 10880 | 11453 | 11393 |
| **8/23** | 10750 | 11270 | 11191 |
| **9/23** | 10390 | 10733 | 10646 |
| **10/23** | 10230 | 10507 | 10412 |
| **11/23** | 10900 | 11467 | 11341 |
| **12/23** | 11287 | 11988 | 11842 |
| **1/24** | 11424 | 12189 | 12030 |
| **2/24** | 11868 | 12840 | 12653 |
| **3/24** | 12164 | 13253 | 13045 |
| **4/24** | 11823 | 12712 | 12502 |
| **5/24** | 12256 | 13342 | 13103 |
| **6/24** | 12563 | 13821 | 13557 |
| **7/24** | 12654 | 13989 | 13710 |
| **8/24** | 12905 | 14329 | 14023 |
| **9/24** | 13128 | 14635 | 14307 |
| **10/24** | 13025 | 14502 | 14165 |
| **11/24** | 13606 | 15353 | 14977 |
| **12/24** | 13366 | 14987 | 14603 |
| **1/25** | 13647 | 15404 | 14997 |
| **2/25** | 13519 | 15203 | 14783 |
| **3/25** | 12880 | 14347 | 13933 |
| **4/25** | 12803 | 14250 | 13827 |
| **5/25** | 13353 | 15146 | 14677 |
| **6/25** | 13852 | 15917 | 15405 |
| **7/25** | 14069 | 16274 | 15739 |
| **8/25** | 14300 | 16604 | 16039 |
| **9/25** | 14664 | 17210 | 16606 |
| **10/25** | 14912 | 17613 | 16982 |
| **11/25** | 14951 | 17656 | 17004 |
| **12/25** | 14964 | 17667 | 16996 |

---

### **Average Annual Total Returns** 

---

| | | |
|:---|:---|:---|
| **Name** | **1-Year** | **Since Inception<sup>Footnote Reference\*</sup>** |
| Class 2 Shares | 11.95% | 15.73% |
| S&P 500 Index | 17.88% | 22.91% |
| S&P 500 Price Return Index | 16.39% | 21.20% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Since inception performance is calculated from March 29, 2023, the inception date of the Fund. |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The S&P 500 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The S&P 500 Price Return Index is included as an additional index for the Fund as it shows how the Fund's performance compares with the returns of an index of funds with similar investment objectives. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$33,827

* Total Number of Portfolio Holdings9

* Portfolio Turnover Rate 25.3%

* Total Advisory Fees Paid (amount in thousands)$262

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 87.89% |
| Purchased Options | 16.15% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | (4.04)% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Exchange-Traded Funds | 87.86% |
| Purchased Options | 16.15% |
| Money Market Funds | 0.03% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | (4.04)% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC902AR2-0

# Class 2

# U.S. LargeCap S&P 500 Index Buffer January Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about U.S. LargeCap S&P 500 Index Buffer January Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $102 | 0.96% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide investors with returns (before fees and expenses) based on the S&P 500 Price Return Index ("Index") while seeking to provide a buffer against the first 10% (prior to taking into account any fees and expenses of the Fund) of Index losses, over a twelve-month period beginning on January 1 and ending on December 31. The Fund invests at least 80% of its net assets in exchange-traded funds and options that reference the Index which represents large capitalization U.S. equities without dividend returns. The Fund employs a defined outcome strategy that uses options to gain exposure to the Index while mitigating the first 10% decline in the Index. The Principal Variable Contracts U.S. LargeCap Buffer Funds are defined outcome investment solutions that are designed to offer limited downside protection, full upside participation up to 10%, and partial participation on any gains above 10%. The Fund uses a combination of ETFs and options to accomplish this objective. The out-of-the-money put, ETF holdings, and deep in-the-money call contributed to performance, while the at-the-money put and out-of-the-money call detracted from performance. Overall, performance since launch is in line with expectations. Note that intra-period performance may differ in an unpredictable way from full period performance.

## How did the Fund perform since inception?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](ic95bc6fb855ceefdf8afc445.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 2 Shares at net asset value $15,927** | **S&P 500 Index $18,892** | **S&P 500 Price Return Index $18,094** |
| **12/22** | 10000 | 10000 | 10000 |
| **12/22** | 10000 | 10151 | 10149 |
| **1/23** | 10430 | 10788 | 10775 |
| **2/23** | 10240 | 10525 | 10494 |
| **3/23** | 10560 | 10912 | 10862 |
| **4/23** | 10680 | 11082 | 11021 |
| **5/23** | 10700 | 11130 | 11048 |
| **6/23** | 11230 | 11866 | 11763 |
| **7/23** | 11490 | 12247 | 12130 |
| **8/23** | 11350 | 12052 | 11915 |
| **9/23** | 10955 | 11477 | 11334 |
| **10/23** | 10784 | 11236 | 11085 |
| **11/23** | 11535 | 12262 | 12074 |
| **12/23** | 11942 | 12819 | 12608 |
| **1/24** | 12108 | 13034 | 12808 |
| **2/24** | 12547 | 13730 | 13471 |
| **3/24** | 12855 | 14172 | 13889 |
| **4/24** | 12452 | 13593 | 13311 |
| **5/24** | 12902 | 14267 | 13950 |
| **6/24** | 13246 | 14779 | 14433 |
| **7/24** | 13365 | 14959 | 14597 |
| **8/24** | 13626 | 15322 | 14930 |
| **9/24** | 13841 | 15649 | 15232 |
| **10/24** | 13746 | 15507 | 15081 |
| **11/24** | 14364 | 16418 | 15945 |
| **12/24** | 14126 | 16026 | 15547 |
| **1/25** | 14376 | 16473 | 15967 |
| **2/25** | 14269 | 16258 | 15739 |
| **3/25** | 13734 | 15342 | 14834 |
| **4/25** | 13663 | 15238 | 14720 |
| **5/25** | 14233 | 16197 | 15626 |
| **6/25** | 14768 | 17020 | 16401 |
| **7/25** | 14982 | 17402 | 16757 |
| **8/25** | 15220 | 17755 | 17076 |
| **9/25** | 15592 | 18403 | 17679 |
| **10/25** | 15851 | 18834 | 18080 |
| **11/25** | 15896 | 18880 | 18104 |
| **12/25** | 15927 | 18892 | 18094 |

---

### **Average Annual Total Returns** 

---

| | | |
|:---|:---|:---|
| **Name** | **1-Year** | **Since Inception<sup>Footnote Reference\*</sup>** |
| Class 2 Shares | 12.74% | 16.73% |
| S&P 500 Index | 17.88% | 23.55% |
| S&P 500 Price Return Index | 16.39% | 21.79% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Since inception performance is calculated from December 28, 2022, the inception date of the Fund. |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The S&P 500 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The S&P 500 Price Return Index is included as an additional index for the Fund as it shows how the Fund's performance compares with the returns of an index of funds with similar investment objectives. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$61,294

* Total Number of Portfolio Holdings9

* Portfolio Turnover Rate 112.3%

* Total Advisory Fees Paid (amount in thousands)$348

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 38.42% |
| Purchased Options | 7.30% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | 54.28% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Exchange-Traded Funds | 36.29% |
| Purchased Options | 7.30% |
| Money Market Funds | 2.13% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | 54.28% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC900AR2-0

# Class 2

# U.S. LargeCap S&P 500 Index Buffer July Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about U.S. LargeCap S&P 500 Index Buffer July Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $103 | 0.97% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide investors with returns (before fees and expenses) based on the S&P 500 Price Return Index ("Index") while seeking to provide a buffer against the first 10% (prior to taking into account any fees and expenses of the Fund) of Index losses, over a twelve-month period beginning on July 1 and ending on June 30. The Fund invests at least 80% of its net assets in exchange-traded funds and options that reference the Index which represents large capitalization U.S. equities without dividend returns. The Fund employs a defined outcome strategy that uses options to gain exposure to the Index while mitigating the first 10% decline in the Index. The Principal Variable Contracts U.S. LargeCap Buffer Funds are defined outcome investment solutions that are designed to offer limited downside protection, full upside participation up to 10%, and partial participation on any gains above 10%. The Fund uses a combination of ETFs and options to accomplish this objective. The out-of-the-money put, ETF holdings, and deep-in-the-money call contributed to performance, while the at-the-money put and out-of-the-money call detracted from performance. Overall, performance since launch is in line with expectations. Note that intra-period performance may differ in an unpredictable way from full period performance.

## How did the Fund perform since inception?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](ic2b7e7ce45670b62310ad8af.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 2 Shares at net asset value $16,093** | **S&P 500 Index $18,878** | **S&P 500 Price Return Index $17,926** |
| **6/22** | 10000 | 10000 | 10000 |
| **7/22** | 10000 | 9914 | 9912 |
| **8/22** | 10660 | 10828 | 10816 |
| **9/22** | 10340 | 10387 | 10357 |
| **10/22** | 10200 | 10193 | 10139 |
| **11/22** | 10600 | 10763 | 10684 |
| **12/22** | 10193 | 10143 | 10054 |
| **1/23** | 10635 | 10780 | 10675 |
| **2/23** | 10454 | 10517 | 10396 |
| **3/23** | 10735 | 10903 | 10761 |
| **4/23** | 10835 | 11074 | 10918 |
| **5/23** | 10875 | 11122 | 10945 |
| **6/23** | 11357 | 11857 | 11654 |
| **7/23** | 11638 | 12238 | 12017 |
| **8/23** | 11508 | 12043 | 11804 |
| **9/23** | 11105 | 11469 | 11229 |
| **10/23** | 10944 | 11227 | 10982 |
| **11/23** | 11648 | 12253 | 11961 |
| **12/23** | 12052 | 12809 | 12490 |
| **1/24** | 12165 | 13025 | 12689 |
| **2/24** | 12661 | 13720 | 13345 |
| **3/24** | 13002 | 14162 | 13759 |
| **4/24** | 12548 | 13583 | 13186 |
| **5/24** | 13054 | 14257 | 13820 |
| **6/24** | 13446 | 14768 | 14299 |
| **7/24** | 13560 | 14948 | 14461 |
| **8/24** | 13807 | 15311 | 14791 |
| **9/24** | 14041 | 15637 | 15090 |
| **10/24** | 13843 | 15496 | 14940 |
| **11/24** | 14458 | 16405 | 15796 |
| **12/24** | 14208 | 16014 | 15402 |
| **1/25** | 14500 | 16460 | 15818 |
| **2/25** | 14364 | 16245 | 15592 |
| **3/25** | 13770 | 15330 | 14695 |
| **4/25** | 13687 | 15226 | 14583 |
| **5/25** | 14291 | 16185 | 15480 |
| **6/25** | 14875 | 17008 | 16248 |
| **7/25** | 15125 | 17389 | 16600 |
| **8/25** | 15375 | 17742 | 16917 |
| **9/25** | 15775 | 18389 | 17514 |
| **10/25** | 16047 | 18820 | 17912 |
| **11/25** | 16081 | 18866 | 17935 |
| **12/25** | 16093 | 18878 | 17926 |

---

### **Average Annual Total Returns** 

---

| | | |
|:---|:---|:---|
| **Name** | **1-Year** | **Since Inception<sup>Footnote Reference\*</sup>** |
| Class 2 Shares | 13.26% | 14.53% |
| S&P 500 Index | 17.88% | 19.86% |
| S&P 500 Price Return Index | 16.39% | 18.11% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Since inception performance is calculated from June 29, 2022, the inception date of the Fund. |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The S&P 500 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The S&P 500 Price Return Index is included as an additional index for the Fund as it shows how the Fund's performance compares with the returns of an index of funds with similar investment objectives. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$45,181

* Total Number of Portfolio Holdings9

* Portfolio Turnover Rate 126.9%

* Total Advisory Fees Paid (amount in thousands)$394

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 88.52% |
| Purchased Options | 14.95% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | (3.47)% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Exchange-Traded Funds | 88.45% |
| Purchased Options | 14.95% |
| Money Market Funds | 0.07% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | (3.47)% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC898AR2-0

# Class 2

# U.S. LargeCap S&P 500 Index Buffer October Account
![Image](iad3c62b0fd948909525ed768.jpg)

#### Annual Shareholder Report December 31, 2025
This annual shareholder report contains important information about U.S. LargeCap S&P 500 Index Buffer October Account (the "Fund") for the period of January 1, 2025 to December 31, 2025. You can find additional information about the Fund at www.PrincipalAM.com/pvcprospectuses or you can request information by contacting us at <u>1-800-222-5852</u> or emailing prospectus@principalfunds.com.

## What were the Fund costs for the last year?
(based on a hypothetical $10,000 investment)

---

| | | |
|:---|:---|:---|
| **Class Name** | **Costs of a $10,000 investment** | **Costs paid as a percentage of a $10,000 investment** |
| Class 2 | $102 | 0.96% |

---

## **Management's Discussion of Fund Performance** 
The Fund seeks to provide investors with returns (before fees and expenses) based on the S&P 500 Price Return Index ("Index") while seeking to provide a buffer against the first 10% (prior to taking into account any fees and expenses of the Fund) of Index losses, over a twelve-month period beginning on October 1 and ending on September 30. The Fund invests at least 80% of its net assets in exchange-traded funds and options that reference the Index which represents large capitalization U.S. equities without dividend returns. The Fund employs a defined outcome strategy that uses options to gain exposure to the Index while mitigating the first 10% decline in the Index. The Principal Variable Contracts U.S. LargeCap Buffer Funds are defined outcome investment solutions that are designed to offer limited downside protection, full upside participation up to 10%, and partial participation on any gains above 10%. The Fund uses a combination of ETFs and options to accomplish this objective. The out-of-the-money put, ETF holdings, and deep in-the-money call contributed to performance, while the at-the-money put and out-of-the-money call detracted from performance. Overall, performance since launch is in line with expectations. Note that intra-period performance may differ in an unpredictable way from full period performance.

## How did the Fund perform since inception?
![The graph represents how a hypothetical investment of $10,000 would have performed over the specified time period.](i0cdca9d543f6e7f922a4d958.jpg)

---

| | | | |
|:---|:---|:---|:---|
| | **Class 2 Shares at net asset value $16,952** | **S&P 500 Index $19,718** | **S&P 500 Price Return Index $18,804** |
| **9/22** | 10000 | 10000 | 10000 |
| **9/22** | 10000 | 9850 | 9849 |
| **10/22** | 10570 | 10647 | 10636 |
| **11/22** | 11020 | 11242 | 11208 |
| **12/22** | 10529 | 10595 | 10547 |
| **1/23** | 11020 | 11260 | 11198 |
| **2/23** | 10809 | 10985 | 10906 |
| **3/23** | 11120 | 11389 | 11288 |
| **4/23** | 11250 | 11567 | 11453 |
| **5/23** | 11290 | 11617 | 11482 |
| **6/23** | 11861 | 12384 | 12225 |
| **7/23** | 12162 | 12782 | 12605 |
| **8/23** | 12012 | 12579 | 12382 |
| **9/23** | 11570 | 11979 | 11779 |
| **10/23** | 11406 | 11727 | 11520 |
| **11/23** | 12157 | 12798 | 12547 |
| **12/23** | 12577 | 13380 | 13102 |
| **1/24** | 12706 | 13604 | 13311 |
| **2/24** | 13201 | 14331 | 13999 |
| **3/24** | 13545 | 14792 | 14433 |
| **4/24** | 13125 | 14188 | 13833 |
| **5/24** | 13641 | 14891 | 14497 |
| **6/24** | 14018 | 15426 | 14999 |
| **7/24** | 14136 | 15613 | 15169 |
| **8/24** | 14415 | 15992 | 15516 |
| **9/24** | 14654 | 16334 | 15829 |
| **10/24** | 14611 | 16186 | 15672 |
| **11/24** | 15215 | 17136 | 16570 |
| **12/24** | 14989 | 16727 | 16156 |
| **1/25** | 15291 | 17193 | 16593 |
| **2/25** | 15172 | 16969 | 16356 |
| **3/25** | 14611 | 16013 | 15415 |
| **4/25** | 14525 | 15904 | 15298 |
| **5/25** | 15140 | 16905 | 16239 |
| **6/25** | 15701 | 17765 | 17044 |
| **7/25** | 15949 | 18163 | 17414 |
| **8/25** | 16197 | 18532 | 17746 |
| **9/25** | 16599 | 19208 | 18373 |
| **10/25** | 16879 | 19658 | 18789 |
| **11/25** | 16928 | 19706 | 18814 |
| **12/25** | 16952 | 19718 | 18804 |

---

### **Average Annual Total Returns** 

---

| | | |
|:---|:---|:---|
| **Name** | **1-Year** | **Since Inception<sup>Footnote Reference\*</sup>** |
| Class 2 Shares | 13.10% | 17.61% |
| S&P 500 Index | 17.88% | 23.19% |
| S&P 500 Price Return Index | 16.39% | 21.41% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Since inception performance is calculated from September 29, 2022, the inception date of the Fund. |

---

**Past performance is not a good predictor of the Fund's future performance.** The graph above represents historical performance of a hypothetical investment of $10,000 in the Fund over the past ten years (or since inception if shorter). The table and graph above do not reflect the impact of taxes. If they did, performance would be lower. The S&P 500 Index is the Fund's primary broad-based index and is included to meet the recently revised definition of "broad-based securities market index". The S&P 500 Price Return Index is included as an additional index for the Fund as it shows how the Fund's performance compares with the returns of an index of funds with similar investment objectives. Visit www.PrincipalAM.com for more recent performance information.

### **Fund Statistics** 
* Net Assets (amount in thousands)$87,092

* Total Number of Portfolio Holdings9

* Portfolio Turnover Rate 89.5%

* Total Advisory Fees Paid (amount in thousands)$472

#### Graphical Representation of Holdings

### **Portfolio Allocation** 

---

| | |
|:---|:---|
| **Asset Weighting** | **Percent of Net Assets** |
| Investment Companies | 124.39% |
| Purchased Options | 21.39% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | (45.78)% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

#### Sector Allocation

---

| | |
|:---|:---|
| **Sector** | **Percent of Net Assets** |
| Exchange-Traded Funds | 124.39% |
| Purchased Options | 21.39% |
| Money Market Funds | 0.00% |
| Other Assets and Liabilities<sup>Footnote Reference\*</sup> | (45.78)% |
| Total Net Assets | 100.00% |

---

---

| | |
|:---|:---|
| Footnote | Description |
| &nbsp;&nbsp;Footnote<sup>\*</sup> | &nbsp;&nbsp;Includes derivatives |

---

## **Material Fund Changes** 
There were no material changes to the Fund for the period January 1, 2025 to December 31, 2025. For more complete information, you may review the Fund's most recent prospectus at www.PrincipalAM.com/pvcprospectuses.

## **Changes in and Disagreements with Accountants** 
During the two most recent fiscal years or any subsequent interim period, there have been no changes in or disagreements with Accountants.

## **Availability of Additional Information** 
The Fund's most recent prospectus, statement of additional information, financial statements and additional information, complete schedules of investments for the first and third quarters of each fiscal year, and proxy voting record can be found at www.PrincipalAM.com/pvcprospectuses. Did you know that our Tax Center can provide answers to your tax-related questions on your account? Visit our website at www.Principal.com/tax-centerfor more information.

## **Householding** 
To avoid sending duplicate copies of materials to households, mailings for accounts held by members of your household may be combined so that only one copy of each annual and semi-annual shareholder reports will be mailed. If you prefer to receive multiple copies of the shareholder reports, you may request that by contacting us at <u>1-800-222-5852</u>. Householding will be stopped within 30 days after we receive your request.

PVC899AR2-0

#### ITEM 2 – CODE OF ETHICS
(a) The Registrant has adopted a code of ethics (the "Code of Ethics") that applies to its principal executive officer, principal financial officer, principal accounting officer or controller, or persons performing similar functions.

(b) Not applicable.

(c) The Registrant has not amended, as described in Item 2(c) of Form N-CSR, its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto.

(d) The Registrant has not granted a waiver or an implicit waiver from a provision of its Code of Ethics during the period covered by the shareholder report presented in Item 1 hereto.

(e) Not applicable.

(f) The Registrant's Code of Ethics is attached as an Exhibit in response to Item 13(a)(1).

#### ITEM 3 – AUDIT COMMITTEE FINANCIAL EXPERT
The Registrant's Board has determined that Frances Grieb, a member of the Registrant's Audit Committee, is an "audit committee financial expert" and "independent," as such terms are defined in this Item.

#### ITEM 4 – PRINCIPAL ACCOUNTANT FEES AND SERVICES
<u>(a) Audit Fees.</u> Ernst & Young is the principal accountant for the registrant. As such, Ernst & Young has audited the financial statements of the registrant and reviewed regulatory filings that include those financial statements. During the last two fiscal years, Ernst & Young has billed the following amounts for their professional services.

December 31, 2024 – $707,786

December 31, 2025 – $567,035

<u>(b) Audit-Related Fees.</u> Ernst & Young provided audit-related services to the registrant that are not included in response to item 4(a). Those services related to the review of Form N-1A and Form N-14. Ernst & Young has billed the following amounts for those services.

December 31, 2024 - $0

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2025 - $0

Ernst & Young billed no fees that registrant's audit committee was required to pre-approve pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.

<u>(c) Tax Fees.</u> Ernst & Young prepares and reviews the federal income tax returns and federal excise tax returns of the registrant. In connection with this service, Ernst & Young prepares and reviews the calculation of the registrant's dividend distributions that are included as deductions on the tax returns. Ernst & Young also provides services to identify passive foreign investment companies. Ernst & Young also provides services to understand and comply with tax laws in certain foreign countries and services to determine the taxability of corporate actions. During the last two fiscal years, Ernst & Young has billed the following amounts for their professional tax services.

December 31, 2024 - $207,769

December 31, 2025 - $201,923

Ernst & Young billed no fees that registrant's audit committee was required to pre-approve pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.

<u>(d) All Other Fees.</u> Ernst & Young has not billed the registrant for other products or services during the last two fiscal years.

Ernst & Young billed no fees that registrant's audit committee was required to pre-approve pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X.

<u>(e) (1) Audit Committee Pre-Approval Policy.</u> The audit committee of the registrant has adopted the following pre-approval policy:

The Principal Funds Policy on Auditor Independence

The purpose of this policy is to ensure the independence of the Principal Funds' primary independent auditor. This policy is established by the Audit Committee (the "Committee") of the Boards of Directors of Principal Funds, Inc. and Principal Variable Contracts Funds, Inc. and the Boards of Trustees of Principal Exchange-Traded Funds (the "Funds") (the "Boards of the Funds") effective for all engagements of the primary independent auditor.

1.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The primary independent auditor, its subsidiaries and affiliates shall not provide Prohibited Services to the Funds. For the purposes of this policy, Prohibited Services are:

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Services that are subject to audit procedure during a financial statement audit;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Services where the auditor would act on behalf of management;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Services where the auditor is an advocate to the client's position in an adversarial proceeding;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Bookkeeping or other services related to the accounting records or financial statements of the Funds, its subsidiaries and affiliates;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Financial information systems design and implementation;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Appraisal or valuation services, fairness opinions, or contribution-in-kind reports;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Actuarial services;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Internal audit functions or human resources;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Broker or dealer, investment advisor, or investment banking services;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Legal services and expert services unrelated to the audit;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Tax planning services related to listed, confidential and aggressive transactions;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Personal tax planning services to individuals in a financial reporting oversight role with regard to the Funds (other than members of the Boards of the Funds who are not also officers of the Funds), including the immediate family members of such individuals;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any other service that the Public Company Accounting Oversight Board (PCAOB) determines, by regulation, is impermissible; and

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any other service that the International Ethics Standards Board for Accountants (IESBA) determines, by regulation, is impermissible.

2.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; (A) All services the primary independent auditor, its subsidiaries and affiliates provide to the Funds, and (B) Audit services, including audits of annual financial statements, audits of acquired or divested businesses or review of regulatory filings, any independent auditor provides, shall be approved by the Committee in advance in accordance with the following procedure:

Each quarter, Management will present to the Committee for pre-approval and pre-concurrence a detailed description of each particular service, excluding tax services, for which pre-approval and pre-concurrence is sought, and the corresponding range of fees for such service. The Committee may delegate pre-approval and pre-concurrence authority to one or more of its members provided such delegated member(s) shall present a report of any services so pre-approved and pre-concurred to the full Committee at its next regularly scheduled meeting. The Committee Chairperson is presently so appointed pursuant to this policy, and shall have pre-approval and pre-concurrence authority for changes to any range of fees applicable to services the Committee previously approved and for new services and the range of fees for such services that arise between regularly scheduled Committee meetings.

In considering whether to grant pre-approval and pre-concurrence with respect to the primary independent auditor's provision of non-audit services, the Committee (or the delegated member(s), as applicable) will consider whether the services are compatible with the maintenance of such auditor's independence. The Committee (or the delegated member(s), as applicable) will also consider whether the primary independent auditor is best positioned to provide the most effective and efficient service, for reasons such as its familiarity with the Funds' business, people, culture, accounting systems, risk profile and other factors, and whether the service might enhance the Funds' ability to manage or control risk or improve audit quality.

3.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The provisions of this policy shall apply to all audit and non-audit services provided directly to the Funds. Additionally, the provisions of this policy shall apply to non-audit services provided to Principal Global Investors, LLC ("PGI") or an affiliate of PGI that provides ongoing services to the Funds if the engagement relates directly to the operations and financial reporting of the Funds as well as any controlled subsidiary.

4.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Not less than annually, the primary independent auditor shall report to the Committee in writing all relationships that may reasonably be thought to bear on independence between the auditor and the Funds or persons in financial reporting oversight roles with respect to any services provided by the auditor, its subsidiaries or affiliates as of the date of the communication, pursuant to Rule 3526 of the PCAOB. The primary independent auditor shall discuss with the Committee the potential effects of such relationships on the independence of the auditor. In addition, the primary independent auditor shall affirm, in writing, that, as of the date of the communication, it is independent within the meaning of the federal securities laws and Rule 3520 of the PCAOB.

5.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Committee shall monitor that the lead (or coordinating) audit partners, as well as the reviewing audit partner, of the Funds' primary independent auditor are rotated at least every five years and subject upon rotation to a five year "time out" period. All other audit partners of the primary independent auditor, excluding partners who simply consult with others on the audit engagement regarding technical issues, shall rotate after seven years and be subject upon rotation to a two year "time out" period.

6.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Neither the Funds nor PGI may hire or promote any former partner, principal, shareholder or professional employee (Former Employee) of the primary independent auditor into a financial reporting oversight role unless the Former Employee (1) has severed his/her economic interest in the independent audit firm, and (2) was not a member of the audit engagement team for the Funds during the one year period preceding the date that the audit procedures began for the fiscal period in which the Funds or PGI proposes to hire or promote the Former Employee. Neither the Funds nor PGI shall, without prior written consent of the primary independent auditor, hire or promote any Former Employee into a role not prohibited above if the Former Employee had provided any services to the Funds or PGI during the 12 months preceding the date of filing of the Funds' most recent annual report with the SEC. Upon termination of the primary independent auditor, the Funds or PGI shall not, without prior written consent of the former primary independent auditor, hire or promote any Former Employee for a period of up to 12 months from termination.

7.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; For persons recently promoted or hired into a financial reporting oversight role (other than members of the Boards of the Funds who are not also officers or otherwise "interested persons" (as defined in the Investment Company Act of 1940) of the Funds), any personal tax planning services pursuant to an engagement that was in progress before the hiring or promotion and provided by the primary independent auditor must be completed on or before 180 days after the hiring or promotion.

8.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The phrase "financial reporting oversight role" means a role in which a person is in a position to exercise influence over the contents of the financial statements or anyone who prepares them, such as a member of the board of directors or similar management or governing body, chief executive officer, president, chief operating officer, chief financial officer, counsel, controller, chief internal auditor, or any equivalent positions.

(Adopted by the Audit Committee of the Boards of the Funds on June 10, 2025).

<u>(e) (2) Pre-Approval Waivers.</u> There were no services, or 0%, provided to the registrant by Ernst & Young that were approved pursuant to paragraph (c)(7)(i)(C) of Rule 2-01 of Regulation S-X.

<u>(f)</u> Substantially all work in connection with the audit of the registrant's financial statements was performed by full-time employees of Ernst & Young.

<u>(g)</u> The aggregate non-audit fees Ernst & Young billed to the registrant, the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the adviser that provides ongoing services to the registrant for each of registrant's last two fiscal years were as follows.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2024 - $420,296

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; December 31, 2025 - $411,155

<u>(h)</u> The registrant's audit committee of the board of directors has considered whether the provision of non-audit services that were rendered to the registrant's investment adviser (not including any sub-adviser whose role is primarily portfolio management and is subcontracted with or overseen by another investment adviser), and any entity controlling, controlled by or under common control with the investment adviser that provides ongoing services to the registrant that were not pre-approved pursuant to paragraph (c)(7)(ii) of Rule 2-01 of Regulation S-X is compatible with maintaining the principal accountant's independence and notes there were no fees requiring such consideration.

(i) The registrant has not been identified by the Securities and Exchange Commission as having filed an annual report issued by a registered public accounting firm branch or office that is located in a foreign jurisdiction where the Public Company Accounting Oversight Board is unable to inspect or completely investigate because of a position of authority in that jurisdiction.

(j) the registrant is not a foreign issuer.

#### ITEM 5 – AUDIT COMMITTEE OF LISTED REGISTRANTS
(a) Not applicable.

(b) Not applicable.

#### ITEM 6 – INVESTMENTS
Schedule of Investments is included as part of the Financial Statements filed under Item 7 of this form.

**ITEM 7 – FINANCIAL STATEMENTS AND FINANCIAL HIGHLIGHTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES**

(a) Financial Statements

(b) Financial Highlights

Principal

Variable

Contracts

Funds,

Inc.

Annual

Financial

Statements

and

Additional

Information

December

31,

2025

Table

of

Contents

#### Not

#### FDIC

#### or

#### NCUA

#### insured

#### May

#### lose

#### value
• #### Not

#### a

#### deposit
• #### No

#### bank

#### or

#### credit

#### union

#### guarantee

#### Not

#### insured

#### by

#### any

#### Federal

#### government

#### agency
Financial

Statements

(N-CSR

Item

7)

Notes

to

Financial

Statements

Schedules

of

Investments

Financial

Highlights

(Includes

performance

information)

Report

of

Independent

Registered

Public

Accounting

Firm

Unaudited

Supplemental

Information

Changes

in

and

Disagreements

with

Accountants

(N-CSR

Item

8)

Proxy

Disclosures

(N-CSR

Item

9)

Remuneration

Paid

to

Directors,

Officers

and

Others

(N-CSR

Item

10)

Statement

Regarding

Basis

for

Approval

of

Investment

Advisory

Contracts

(N-CSR

Item

11)

Statements

of

Assets

and

Liabilities

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Blue

Chip

Account

Bond

Market

Index

Account

Core

Plus

Bond

Account

Investment

in

securities--at

cost

................................................................

$

18,999

$

1,885,709

$

250,825

Investment

in

affiliated

Funds--at

cost

..........................................................

$

$

19,650

$

7,561

Assets

Investment

in

securities--at

value

................................................................

$

24,351

$

1,787,554

(a) $

248,661

(a) Investment

in

affiliated

Funds--at

value

...........................................................

19,650

7,561

Cash

...............................................................................................

–

–

Deposits

with

counterparty

........................................................................

–

–

Receivables:

Dividends

and

interest

.......................................................................

13,131

2,067

Expense

reimbursement

from

Manager

.....................................................

–

–

Fund

shares

sold

.............................................................................

Investment

securities

sold

...................................................................

–

16,906

708

Variation

margin

on

futures

.................................................................

–

–

Total

Assets

24,474

1,837,272

259,189

Liabilities

Accrued

management

and

investment

advisory

fees

..............................................

Accrued

distribution

fees

..........................................................................

–

–

Accrued

directors'

expenses

.......................................................................

–

–

Accrued

professional

fees

.........................................................................

Accrued

other

expenses

...........................................................................

Cash

overdraft

.....................................................................................

–

–

Payables:

Fund

shares

redeemed

.......................................................................

–

5,826

Investment

securities

purchased

............................................................

–

23,736

8,990

Variation

margin

on

futures

.................................................................

–

–

Collateral

obligation

on

securities

loaned,

at

value

...............................................

–

5,321

3,958

Total

Liabilities

35,123

13,135

Net

Assets

Applicable

to

Outstanding

Shares

..................................................

$

24,412

$

1,802,149

$

246,054

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

.....................................................

$

16,583

$

2,027,968

$

269,484

Total

distributable

earnings

(accumulated

loss)

...................................................

7,829

(225,819)

(23,430)

Total

Net

Assets

$

24,412

$

1,802,149

$

246,054

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

..................................................................................

400,000

300,000

400,000

Net

Asset

Value

Per

Share:

Class

:

Net

Assets

................................................................................

N/A

$

1,802,149

$

246,054

Shares

Issued

and

Outstanding

..............................................................

190,520

25,336

Net

Asset

Value

per

share

...................................................................

$

.46

$

.71

Class

:

Net

Assets

................................................................................

$

24,412

N/A

N/A

Shares

Issued

and

Outstanding

..............................................................

1,508

Net

Asset

Value

per

share

...................................................................

$

.19

(a) Includes

fair

market

value

of

securities

loaned;

see

"Securities

Lending"

in

Notes

to

Financial

Statements.

Statements

of

Assets

and

Liabilities

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Diversified

Balanced

Account

Diversified

Balanced

Adaptive

Allocation

Account

Diversified

Balanced

Strategic

Allocation

Account

Investment

in

securities--at

cost

................................................................

$

–

$

38,311

$

–

Investment

in

affiliated

Funds--at

cost

..........................................................

$

386,788

$

171,111

$

79,983

Assets

Investment

in

securities--at

value

................................................................

$

–

$

43,555

$

–

Investment

in

affiliated

Funds--at

value

...........................................................

503,672

173,559

87,643

Receivables:

Expense

reimbursement

from

Manager

.....................................................

–

–

Fund

shares

sold

.............................................................................

–

–

Investment

securities

sold

...................................................................

890

632

Total

Assets

504,573

217,746

87,859

Liabilities

Accrued

management

and

investment

advisory

fees

..............................................

Accrued

distribution

fees

..........................................................................

Accrued

directors'

expenses

.......................................................................

–

Accrued

professional

fees

.........................................................................

Accrued

other

expenses

...........................................................................

–

–

Cash

overdraft

.....................................................................................

–

–

Payables:

Fund

shares

redeemed

.......................................................................

900

787

Total

Liabilities

1,030

862

Net

Assets

Applicable

to

Outstanding

Shares

..................................................

$

503,543

$

216,884

$

87,617

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

.....................................................

$

323,024

$

201,630

$

69,232

Total

distributable

earnings

(accumulated

loss)

...................................................

180,519

15,254

18,385

Total

Net

Assets

$

503,543

$

216,884

$

87,617

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

..................................................................................

650,000

400,000

400,000

Net

Asset

Value

Per

Share:

Class

:

Net

Assets

................................................................................

$

34,570

N/A

N/A

Shares

Issued

and

Outstanding

..............................................................

2,423

Net

Asset

Value

per

share

...................................................................

$

.27

Class

:

Net

Assets

................................................................................

$

468,973

$

216,884

$

87,617

Shares

Issued

and

Outstanding

..............................................................

32,674

18,159

7,237

Net

Asset

Value

per

share

...................................................................

$

.35

$

.94

$

.11

Statements

of

Assets

and

Liabilities

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Diversified

Growth

Account

Diversified

Growth

Adaptive

Allocation

Account

Diversified

Growth

Strategic

Allocation

Account

Investment

in

securities--at

cost

................................................................

$

–

$

257,770

$

–

Investment

in

affiliated

Funds--at

cost

..........................................................

$

1,283,552

$

1,068,739

$

167,656

Assets

Investment

in

securities--at

value

................................................................

$

–

$

292,473

$

–

Investment

in

affiliated

Funds--at

value

...........................................................

1,853,317

1,162,312

196,215

Receivables:

Investment

securities

sold

...................................................................

6,476

4,965

614

Total

Assets

1,859,793

1,459,750

196,829

Liabilities

Accrued

management

and

investment

advisory

fees

..............................................

Accrued

distribution

fees

..........................................................................

Accrued

directors'

expenses

.......................................................................

Accrued

professional

fees

.........................................................................

Accrued

other

expenses

...........................................................................

–

Payables:

Fund

shares

redeemed

.......................................................................

6,476

5,952

614

Interfund

borrowing

.........................................................................

–

–

Total

Liabilities

6,969

6,630

668

Net

Assets

Applicable

to

Outstanding

Shares

..................................................

$

1,852,824

$

1,453,120

$

196,161

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

.....................................................

$

993,490

$

1,270,777

$

137,969

Total

distributable

earnings

(accumulated

loss)

...................................................

859,334

182,343

58,192

Total

Net

Assets

$

1,852,824

$

1,453,120

$

196,161

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

..................................................................................

500,000

400,000

400,000

Net

Asset

Value

Per

Share:

Class

:

Net

Assets

................................................................................

$

1,852,824

$

1,453,120

$

196,161

Shares

Issued

and

Outstanding

..............................................................

107,971

111,359

14,793

Net

Asset

Value

per

share

...................................................................

$

.16

$

.05

$

.26

Statements

of

Assets

and

Liabilities

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Diversified

Income

Account

Diversified

International

Account

Equity

Income

Account

Investment

in

securities--at

cost

................................................................

$

–

$

180,656

$

295,666

Investment

in

affiliated

Funds--at

cost

..........................................................

$

165,215

$

4,034

$

11,925

Assets

Investment

in

securities--at

value

................................................................

$

–

$

254,640

(a) $

671,637

(a) Investment

in

affiliated

Funds--at

value

...........................................................

180,151

4,034

11,925

Receivables:

Dividends

and

interest

.......................................................................

–

922

Fund

shares

sold

.............................................................................

–

Investment

securities

sold

...................................................................

–

Total

Assets

180,626

259,236

684,675

Liabilities

Accrued

management

and

investment

advisory

fees

..............................................

Accrued

distribution

fees

..........................................................................

–

Accrued

directors'

expenses

.......................................................................

Accrued

foreign

tax

...............................................................................

–

–

Accrued

professional

fees

.........................................................................

Accrued

other

expenses

...........................................................................

–

Cash

overdraft

.....................................................................................

–

–

Payables:

Fund

shares

redeemed

.......................................................................

815

Investment

securities

purchased

............................................................

–

–

Collateral

obligation

on

securities

loaned,

at

value

...............................................

–

2,546

4,065

Total

Liabilities

527

2,945

5,191

Net

Assets

Applicable

to

Outstanding

Shares

..................................................

$

180,099

$

256,291

$

679,484

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

.....................................................

$

150,369

$

149,540

$

254,900

Total

distributable

earnings

(accumulated

loss)

...................................................

29,730

106,751

424,584

Total

Net

Assets

$

180,099

$

256,291

$

679,484

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

..................................................................................

250,000

300,000

400,000

Net

Asset

Value

Per

Share:

Class

:

Net

Assets

................................................................................

N/A

$

256,291

$

590,661

Shares

Issued

and

Outstanding

..............................................................

13,290

18,595

Net

Asset

Value

per

share

...................................................................

$

.28

$

.76

Class

:

Net

Assets

................................................................................

$

180,099

N/A

$

88,823

Shares

Issued

and

Outstanding

..............................................................

13,697

2,846

Net

Asset

Value

per

share

...................................................................

$

.15

$

.21

(a) Includes

fair

market

value

of

securities

loaned;

see

"Securities

Lending"

in

Notes

to

Financial

Statements.

Statements

of

Assets

and

Liabilities

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Global

Emerging

Markets

Account

Government

&

High

Quality

Bond

Account

LargeCap

Growth

Account

I

Investment

in

securities--at

cost

................................................................

$

59,319

$

115,167

$

422,806

Investment

in

affiliated

Funds--at

cost

..........................................................

$

$

901

$

17,063

Assets

Investment

in

securities--at

value

................................................................

$

81,500

$

112,213

$

600,370

(a) Investment

in

affiliated

Funds--at

value

...........................................................

901

17,063

Deposits

with

counterparty

........................................................................

–

Receivables:

Dividends

and

interest

.......................................................................

Expense

reimbursement

from

Manager

.....................................................

–

–

Foreign

tax

refund

...........................................................................

–

–

Fund

shares

sold

.............................................................................

Investment

securities

sold

...................................................................

–

–

Variation

margin

on

futures

.................................................................

–

–

Prepaid

expenses

..................................................................................

–

–

Total

Assets

82,048

113,598

617,986

Liabilities

Accrued

management

and

investment

advisory

fees

..............................................

Accrued

directors'

expenses

.......................................................................

–

–

Accrued

foreign

tax

...............................................................................

–

–

Accrued

professional

fees

.........................................................................

–

Accrued

other

expenses

...........................................................................

Cash

overdraft

.....................................................................................

–

Payables:

Fund

shares

redeemed

.......................................................................

Investment

securities

purchased

............................................................

–

6,374

Variation

margin

on

futures

.................................................................

–

Collateral

obligation

on

securities

loaned,

at

value

...............................................

–

–

Total

Liabilities

6,481

572

Net

Assets

Applicable

to

Outstanding

Shares

..................................................

$

81,605

$

107,117

$

617,414

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

.....................................................

$

52,484

$

135,585

$

347,871

Total

distributable

earnings

(accumulated

loss)

...................................................

29,121

(28,468)

269,543

Total

Net

Assets

$

81,605

$

107,117

$

617,414

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

..................................................................................

200,000

200,000

200,000

Net

Asset

Value

Per

Share:

Class

:

Net

Assets

................................................................................

$

81,605

$

107,117

$

617,414

Shares

Issued

and

Outstanding

..............................................................

3,943

12,512

13,517

Net

Asset

Value

per

share

...................................................................

$

.70

$

.56

$

.68

(a) Includes

fair

market

value

of

securities

loaned;

see

"Securities

Lending"

in

Notes

to

Financial

Statements.

Statements

of

Assets

and

Liabilities

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

LargeCap

S&P

500

Index

Account

LargeCap

S&P

500

Managed

Volatility

Index

Account

MidCap

Account

Investment

in

securities--at

cost

................................................................

$

1,046,867

$

51,785

$

410,348

Investment

in

affiliated

Funds--at

cost

..........................................................

$

9,133

$

5,320

$

3,913

Assets

Investment

in

securities--at

value

................................................................

$

2,383,936

(a) $

113,038

(a) $

580,046

(a) Investment

in

affiliated

Funds--at

value

...........................................................

9,133

5,320

3,913

Cash

...............................................................................................

–

–

Deposits

with

counterparty

........................................................................

–

986

–

Receivables:

Dividends

and

interest

.......................................................................

1,270

Fund

shares

sold

.............................................................................

588

–

639

Investment

securities

sold

...................................................................

895

–

–

Total

Assets

2,395,822

119,419

584,715

Liabilities

Accrued

management

and

investment

advisory

fees

..............................................

Accrued

distribution

fees

..........................................................................

–

Accrued

directors'

expenses

.......................................................................

Accrued

professional

fees

.........................................................................

Accrued

other

expenses

...........................................................................

Payables:

Fund

shares

redeemed

.......................................................................

5,009

Variation

margin

on

futures

.................................................................

–

Collateral

obligation

on

securities

loaned,

at

value

...............................................

2,281

Total

Liabilities

5,668

2,652

Net

Assets

Applicable

to

Outstanding

Shares

..................................................

$

2,390,154

$

119,014

$

582,063

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

.....................................................

$

742,717

$

42,931

$

321,038

Total

distributable

earnings

(accumulated

loss)

...................................................

1,647,437

76,083

261,025

Total

Net

Assets

$

2,390,154

$

119,014

$

582,063

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

..................................................................................

300,000

100,000

105,000

Net

Asset

Value

Per

Share:

Class

:

Net

Assets

................................................................................

$

2,313,176

$

119,014

$

533,589

Shares

Issued

and

Outstanding

..............................................................

95,211

7,651

8,600

Net

Asset

Value

per

share

...................................................................

$

.30

$

.55

$

.05

Class

:

Net

Assets

................................................................................

$

76,978

N/A

$

48,474

Shares

Issued

and

Outstanding

..............................................................

3,256

798

Net

Asset

Value

per

share

...................................................................

$

.64

$

.73

(a) Includes

fair

market

value

of

securities

loaned;

see

"Securities

Lending"

in

Notes

to

Financial

Statements.

Statements

of

Assets

and

Liabilities

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Principal

Capital

Appreciation

Account

Principal

LifeTime

2020

Account

Principal

LifeTime

2030

Account

Investment

in

securities--at

cost

................................................................

$

118,711

$

–

$

–

Investment

in

affiliated

Funds--at

cost

..........................................................

$

2,115

$

133,833

$

306,018

Assets

Investment

in

securities--at

value

................................................................

$

244,154

$

–

$

–

Investment

in

affiliated

Funds--at

value

...........................................................

2,115

139,575

332,251

Receivables:

Dividends

and

interest

.......................................................................

Fund

shares

sold

.............................................................................

Investment

securities

sold

...................................................................

–

–

Total

Assets

246,426

139,885

332,979

Liabilities

Accrued

management

and

investment

advisory

fees

..............................................

–

–

Accrued

distribution

fees

..........................................................................

–

–

Accrued

directors'

expenses

.......................................................................

Accrued

professional

fees

.........................................................................

Accrued

other

expenses

...........................................................................

–

–

Payables:

Fund

shares

redeemed

.......................................................................

Investment

securities

purchased

............................................................

–

675

Total

Liabilities

733

Net

Assets

Applicable

to

Outstanding

Shares

..................................................

$

246,226

$

139,572

$

332,246

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

.....................................................

$

103,783

$

123,712

$

282,377

Total

distributable

earnings

(accumulated

loss)

...................................................

142,443

15,860

49,869

Total

Net

Assets

$

246,226

$

139,572

$

332,246

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

..................................................................................

200,000

200,000

200,000

Net

Asset

Value

Per

Share:

Class

:

Net

Assets

................................................................................

$

148,787

$

139,572

$

332,246

Shares

Issued

and

Outstanding

..............................................................

3,331

10,443

23,001

Net

Asset

Value

per

share

...................................................................

$

.67

$

.37

$

.44

Class

:

Net

Assets

................................................................................

$

97,439

N/A

N/A

Shares

Issued

and

Outstanding

..............................................................

2,239

Net

Asset

Value

per

share

...................................................................

$

.51

Statements

of

Assets

and

Liabilities

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Principal

LifeTime

2040

Account

Principal

LifeTime

2050

Account

Principal

LifeTime

2060

Account

Investment

in

affiliated

Funds--at

cost

..........................................................

$

203,799

$

86,280

$

36,250

Assets

Investment

in

affiliated

Funds--at

value

...........................................................

$

229,310

$

100,540

$

40,423

Receivables:

Dividends

and

interest

.......................................................................

Fund

shares

sold

.............................................................................

Total

Assets

229,669

100,707

40,462

Liabilities

Accrued

directors'

expenses

.......................................................................

–

–

Accrued

professional

fees

.........................................................................

Payables:

Fund

shares

redeemed

.......................................................................

–

Investment

securities

purchased

............................................................

Total

Liabilities

Net

Assets

Applicable

to

Outstanding

Shares

..................................................

$

229,305

$

100,536

$

40,419

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

.....................................................

$

187,762

$

78,792

$

33,610

Total

distributable

earnings

(accumulated

loss)

...................................................

41,543

21,744

6,809

Total

Net

Assets

$

229,305

$

100,536

$

40,419

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

..................................................................................

200,000

200,000

100,000

Net

Asset

Value

Per

Share:

Class

:

Net

Assets

................................................................................

$

229,305

$

100,536

$

40,419

Shares

Issued

and

Outstanding

..............................................................

11,804

5,212

2,122

Net

Asset

Value

per

share

...................................................................

$

.43

$

.29

$

.05

Statements

of

Assets

and

Liabilities

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Principal

LifeTime

Strategic

Income

Account

Real

Estate

Securities

Account

SAM

Balanced

Portfolio

Investment

in

securities--at

cost

................................................................

$

–

$

236,303

$

–

Investment

in

affiliated

Funds--at

cost

..........................................................

$

54,455

$

1,413

$

453,273

Assets

Investment

in

securities--at

value

................................................................

$

–

$

245,659

$

–

Investment

in

affiliated

Funds--at

value

...........................................................

54,552

1,413

561,392

Deposits

with

counterparty

........................................................................

–

–

Receivables:

Dividends

and

interest

.......................................................................

1,129

Fund

shares

sold

.............................................................................

Investment

securities

sold

...................................................................

–

Variation

margin

on

futures

.................................................................

–

–

Total

Assets

54,705

248,881

562,369

Liabilities

Accrued

management

and

investment

advisory

fees

..............................................

–

Accrued

distribution

fees

..........................................................................

–

Accrued

directors'

expenses

.......................................................................

–

Accrued

professional

fees

.........................................................................

Accrued

other

expenses

...........................................................................

–

Payables:

Fund

shares

redeemed

.......................................................................

Investment

securities

purchased

............................................................

Total

Liabilities

766

952

Net

Assets

Applicable

to

Outstanding

Shares

..................................................

$

54,550

$

248,115

$

561,417

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

.....................................................

$

51,092

$

236,013

$

398,709

Total

distributable

earnings

(accumulated

loss)

...................................................

3,458

12,102

162,708

Total

Net

Assets

$

54,550

$

248,115

$

561,417

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

..................................................................................

200,000

300,000

300,000

Net

Asset

Value

Per

Share:

Class

:

Net

Assets

................................................................................

$

54,550

$

152,571

$

410,491

Shares

Issued

and

Outstanding

..............................................................

4,568

8,729

26,151

Net

Asset

Value

per

share

...................................................................

$

.94

$

.48

$

.70

Class

:

Net

Assets

................................................................................

N/A

$

95,544

$

150,926

Shares

Issued

and

Outstanding

..............................................................

5,468

9,817

Net

Asset

Value

per

share

...................................................................

$

.47

$

.37

Statements

of

Assets

and

Liabilities

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

SAM

Conservative

Balanced

Portfolio

SAM

Conservative

Growth

Portfolio

SAM

Flexible

Income

Portfolio

Investment

in

affiliated

Funds--at

cost

..........................................................

$

139,539

$

332,864

$

105,276

Assets

Investment

in

affiliated

Funds--at

value

...........................................................

$

161,395

$

427,280

$

115,749

Deposits

with

counterparty

........................................................................

–

Receivables:

Dividends

and

interest

.......................................................................

Fund

shares

sold

.............................................................................

–

Investment

securities

sold

...................................................................

Variation

margin

on

futures

.................................................................

–

Total

Assets

161,883

427,579

116,110

Liabilities

Accrued

management

and

investment

advisory

fees

..............................................

Accrued

distribution

fees

..........................................................................

Accrued

directors'

expenses

.......................................................................

Accrued

professional

fees

.........................................................................

Accrued

other

expenses

...........................................................................

–

–

Payables:

Fund

shares

redeemed

.......................................................................

Investment

securities

purchased

............................................................

Total

Liabilities

Net

Assets

Applicable

to

Outstanding

Shares

..................................................

$

161,481

$

427,156

$

115,850

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

.....................................................

$

130,284

$

280,386

$

106,498

Total

distributable

earnings

(accumulated

loss)

...................................................

31,197

146,770

9,352

Total

Net

Assets

$

161,481

$

427,156

$

115,850

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

..................................................................................

200,000

200,000

200,000

Net

Asset

Value

Per

Share:

Class

:

Net

Assets

................................................................................

$

126,904

$

219,389

$

84,591

Shares

Issued

and

Outstanding

..............................................................

10,196

9,295

7,165

Net

Asset

Value

per

share

...................................................................

$

.45

$

.60

$

.81

Class

:

Net

Assets

................................................................................

$

34,577

$

207,767

$

31,259

Shares

Issued

and

Outstanding

..............................................................

2,834

9,015

2,687

Net

Asset

Value

per

share

...................................................................

$

.20

$

.05

$

.63

Statements

of

Assets

and

Liabilities

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

SAM

Strategic

Growth

Portfolio

Short-Term

Income

Account

SmallCap

Account

Investment

in

securities--at

cost

................................................................

$

–

$

128,290

$

132,048

Investment

in

affiliated

Funds--at

cost

..........................................................

$

375,179

$

4,721

$

2,739

Assets

Investment

in

securities--at

value

................................................................

$

–

$

128,706

(a) $

177,225

(a) Investment

in

affiliated

Funds--at

value

...........................................................

491,924

4,721

2,739

Cash

...............................................................................................

–

–

Deposits

with

counterparty

........................................................................

–

–

Receivables:

Dividends

and

interest

.......................................................................

1,167

Fund

shares

sold

.............................................................................

Investment

securities

sold

...................................................................

–

–

Total

Assets

492,015

134,814

180,229

Liabilities

Accrued

management

and

investment

advisory

fees

..............................................

Accrued

distribution

fees

..........................................................................

–

Accrued

directors'

expenses

.......................................................................

Accrued

professional

fees

.........................................................................

Accrued

other

expenses

...........................................................................

Payables:

Fund

shares

redeemed

.......................................................................

Investment

securities

purchased

............................................................

Variation

margin

on

futures

.................................................................

–

–

Collateral

obligation

on

securities

loaned,

at

value

...............................................

–

1,313

3,341

Total

Liabilities

1,622

4,027

Net

Assets

Applicable

to

Outstanding

Shares

..................................................

$

491,780

$

133,192

$

176,202

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

.....................................................

$

322,991

$

129,858

$

119,088

Total

distributable

earnings

(accumulated

loss)

...................................................

168,789

3,334

57,114

Total

Net

Assets

$

491,780

$

133,192

$

176,202

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

..................................................................................

200,000

400,000

200,000

Net

Asset

Value

Per

Share:

Class

:

Net

Assets

................................................................................

$

239,375

$

133,192

$

166,305

Shares

Issued

and

Outstanding

..............................................................

8,440

51,955

9,708

Net

Asset

Value

per

share

...................................................................

$

.36

$

.56

$

.13

Class

:

Net

Assets

................................................................................

$

252,405

N/A

$

9,897

Shares

Issued

and

Outstanding

..............................................................

9,106

584

Net

Asset

Value

per

share

...................................................................

$

.72

$

.95

(a) Includes

fair

market

value

of

securities

loaned;

see

"Securities

Lending"

in

Notes

to

Financial

Statements.

Statements

of

Assets

and

Liabilities

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account

(a) U.S.

LargeCap

S&P

500

Index

Buffer

January

Account

(b) U.S.

LargeCap

S&P

500

Index

Buffer

July

Account

(c) Investment

in

securities--at

cost

................................................................

$

29,074

$

23,940

$

44,064

Investment

in

affiliated

Funds--at

cost

..........................................................

$

$

1,305

$

Assets

Investment

in

securities--at

value

................................................................

$

35,183

$

26,719

$

46,720

Investment

in

affiliated

Funds--at

value

...........................................................

1,305

Cash

...............................................................................................

–

–

Receivables:

Dividends

and

interest

.......................................................................

Expense

reimbursement

from

Manager

.....................................................

Fund

shares

sold

.............................................................................

–

35,634

944

Investment

securities

sold

...................................................................

–

5,028

–

Total

Assets

35,203

68,694

47,711

Liabilities

Accrued

management

and

investment

advisory

fees

..............................................

Accrued

distribution

fees

..........................................................................

Accrued

professional

fees

.........................................................................

Cash

overdraft

.....................................................................................

–

–

Payables:

Fund

shares

redeemed

.......................................................................

–

1,357

Investment

securities

purchased

............................................................

–

6,044

–

Options

and

swaptions

contracts

written

(premiums

received

$

1,215

,

$

1,080

and

$

1,570)

1,298

1,113

1,132

Total

Liabilities

1,376

7,400

2,530

Net

Assets

Applicable

to

Outstanding

Shares

..................................................

$

33,827

$

61,294

$

45,181

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

.....................................................

$

26,457

$

54,328

$

34,594

Total

distributable

earnings

(accumulated

loss)

...................................................

7,370

6,966

10,587

Total

Net

Assets

$

33,827

$

61,294

$

45,181

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

..................................................................................

200,000

200,000

200,000

Net

Asset

Value

Per

Share:

Class

:

Net

Assets

................................................................................

$

33,827

$

61,294

$

45,181

Shares

Issued

and

Outstanding

..............................................................

2,946

5,853

3,184

Net

Asset

Value

per

share

...................................................................

$

.48

$

.48

$

.19

(a) Effective

May

1,

2025,

U.S.

LargeCap

Buffer

April

Account

changed

its

name

to

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account.

(b) Effective

May

1,

2025,

U.S.

LargeCap

Buffer

January

Account

changed

its

name

to

U.S.

LargeCap

S&P

500

Index

Buffer

January

Account.

(c) Effective

May

1,

2025,

U.S.

LargeCap

Buffer

July

Account

changed

its

name

to

U.S.

LargeCap

S&P

500

Index

Buffer

July

Account.

Statements

of

Assets

and

Liabilities

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account

(a) Investment

in

securities--at

cost

............................................................................................................................

$

121,245

Investment

in

affiliated

Funds--at

cost

......................................................................................................................

$

Assets

Investment

in

securities--at

value

............................................................................................................................

$

126,957

Investment

in

affiliated

Funds--at

value

.......................................................................................................................

Cash

...........................................................................................................................................................

Receivables:

Dividends

and

interest

...................................................................................................................................

Expense

reimbursement

from

Manager

.................................................................................................................

Investment

securities

sold

...............................................................................................................................

1,077

Total

Assets

128,434

Liabilities

Accrued

management

and

investment

advisory

fees

..........................................................................................................

Accrued

distribution

fees

......................................................................................................................................

Accrued

professional

fees

.....................................................................................................................................

Payables:

Fund

shares

redeemed

...................................................................................................................................

36,098

Interfund

borrowing

.....................................................................................................................................

1,320

Investment

securities

purchased

........................................................................................................................

Options

and

swaptions

contracts

written

(premiums

received

$

4,814)

.................................................................................

3,789

Total

Liabilities

41,342

Net

Assets

Applicable

to

Outstanding

Shares

..............................................................................................................

$

87,092

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

.................................................................................................................

$

76,792

Total

distributable

earnings

(accumulated

loss)

...............................................................................................................

10,300

Total

Net

Assets

$

87,092

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

..............................................................................................................................................

200,000

Net

Asset

Value

Per

Share:

Class

:

Net

Assets

............................................................................................................................................

$

87,092

Shares

Issued

and

Outstanding

..........................................................................................................................

6,264

Net

Asset

Value

per

share

...............................................................................................................................

$

.91

(a) Effective

May

1,

2025,

U.S.

LargeCap

Buffer

October

Account

changed

its

name

to

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account.

Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands

Blue

Chip

Account

(a),(b)

Bond

Market

Index

Account

Core

Plus

Bond

Account

Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

........................................................................

$

$

1,042

$

Dividends

...............................................................................................

Withholding

tax

........................................................................................

(2)

–

–

Interest

..................................................................................................

–

71,937

10,468

Securities

lending

-

net

.................................................................................

–

Total

Income

73,463

11,261

Expenses:

Management

and

investment

advisory

fees

............................................................

2,706

1,022

Distribution

f

ees

-

Class

..............................................................................

N/A

N/A

Distribution

f

ees

-

Class

..............................................................................

N/A

N/A

Administrative

service

fees

-

Class

..................................................................

N/A

N/A

Chief

compliance

officer

expenses

.....................................................................

–

–

Custodian

fees

..........................................................................................

Directors'

expenses

.....................................................................................

Professional fees

.......................................................................................

Technology

fees

........................................................................................

Other

expenses

.........................................................................................

–

Total

Gross

Expenses

2,811

1,059

Less:

Reimbursement

from

Manager

-

Class

........................................................

N/A

N/A

Less:

Reimbursement

from

Manager

-

Class

........................................................

N/A

N/A

Total

Net

Expenses

2,811

1,059

Net

Investment

Income

(Loss)

(112)

70,652

10,202

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments,

futures

and

swap

agreements

Net

realized

gain

(loss)

from:

Investment

transactions

................................................................................

3,176

(50,345)

(1,187)

Futures

contracts

.......................................................................................

–

–

Swap

agreements

.......................................................................................

–

–

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

.............................................................................................

(703)

114,821

5,706

Futures

contracts

.......................................................................................

–

–

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments,

futures

and

swap

agreements

2,473

64,476

5,079

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

2,361

$

135,128

$

15,281

(a) Class

shares

discontinued

operations

and

converted

to

Class

shares

on

May

1,

2025. (b) Class

shares

commenced

operations

on

April

30,

2025. Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands

Diversified

Balanced

Account

(a) Diversified

Balanced

Adaptive

Allocation

Account

(a) Diversified

Balanced

Strategic

Allocation

Account

(a) Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

........................................................................

$

16,183

$

6,318

$

2,809

Dividends

...............................................................................................

–

–

Interest

..................................................................................................

–

–

Total

Income

16,183

6,796

2,809

Expenses:

Management

and

investment

advisory

fees

............................................................

Distribution

f

ees

-

Class

..............................................................................

1,303

557

Distribution

f

ees

-

Class

..............................................................................

–

–

Administrative

service

fees

-

Class

..................................................................

–

–

Shareholder

reports

-

Class

...........................................................................

–

Custodian

fees

..........................................................................................

–

–

Directors'

expenses

.....................................................................................

Professional fees

.......................................................................................

Technology

fees

........................................................................................

Other

expenses

.........................................................................................

–

Total

Gross

Expenses

1,612

845

Less:

Reimbursement

from

Manager

-

Class

........................................................

–

–

Total

Net

Expenses

1,612

845

Net

Investment

Income

(Loss)

14,571

5,951

2,504

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

futures

Net

realized

gain

(loss)

from:

Investment

transactions

................................................................................

–

(3,148)

–

Investment

transactions

in

affiliated

Funds

............................................................

35,040

2,054

3,733

Futures

contracts

.......................................................................................

–

(3,653)

–

Capital

gain

distributions

received

from

affiliated

Funds

..............................................

33,952

6,683

7,586

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

.............................................................................................

–

3,138

–

Investments

in

affiliated

Funds

.........................................................................

(20,587)

3,944

(2,974)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

futures

48,405

9,018

8,345

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

62,976

$

14,969

$

10,849

(a) Class

shares

discontinued

operations

and

converted

to

Class

shares

on

May

1,

2025. Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands

Diversified

Growth

Account

(a) Diversified

Growth

Adaptive

Allocation

Account

(a) Diversified

Growth

Strategic

Allocation

Account

(a) Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

........................................................................

$

52,500

$

37,157

$

5,659

Dividends

...............................................................................................

–

2,958

–

Interest

..................................................................................................

–

–

Total

Income

52,500

40,207

5,659

Expenses:

Management

and

investment

advisory

fees

............................................................

1,034

1,776

Distribution

f

ees

-

Class

..............................................................................

5,169

3,699

546

Distribution

f

ees

-

Class

..............................................................................

–

–

Administrative

service

fees

-

Class

..................................................................

–

–

Chief

compliance

officer

expenses

.....................................................................

–

Custodian

fees

..........................................................................................

–

–

Directors'

expenses

.....................................................................................

Professional fees

.......................................................................................

Technology

fees

........................................................................................

Other

expenses

.........................................................................................

Total

Expenses

6,270

5,535

674

Net

Investment

Income

(Loss)

46,230

34,672

4,985

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

futures

Net

realized

gain

(loss)

from:

Investment

transactions

................................................................................

–

(18,833)

–

Investment

transactions

in

affiliated

Funds

............................................................

194,108

14,736

10,195

Futures

contracts

.......................................................................................

–

(45,064)

–

Capital

gain

distributions

received

from

affiliated

Funds

..............................................

160,581

71,102

22,258

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

.............................................................................................

–

20,794

–

Investments

in

affiliated

Funds

.........................................................................

(138,029)

25,430

(9,890)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

futures

216,660

68,165

22,563

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

262,890

$

102,837

$

27,548

(a) Class

shares

discontinued

operations

and

converted

to

Class

shares

on

May

1,

2025. Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands

Diversified

Income

Account

(a) Diversified

International

Account

Equity

Income

Account

(a) Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

........................................................................

$

6,368

$

$

Dividends

...............................................................................................

–

7,341

14,203

Withholding

tax

........................................................................................

–

(528)

(158)

Interest

..................................................................................................

–

–

Securities

lending

-

net

.................................................................................

–

Total

Income

6,368

6,915

14,434

Expenses:

Management

and

investment

advisory

fees

............................................................

2,153

3,270

Distribution

f

ees

-

Class

..............................................................................

N/A

Distribution

f

ees

-

Class

..............................................................................

–

N/A

Administrative

service

fees

-

Class

..................................................................

–

N/A

Shareholder

reports

-

Class

...........................................................................

N/A

–

Custodian

fees

..........................................................................................

–

Directors'

expenses

.....................................................................................

Professional fees

.......................................................................................

Technology

fees

........................................................................................

Other

expenses

.........................................................................................

Total

Expenses

603

2,290

3,527

Net

Investment

Income

(Loss)

5,765

4,625

10,907

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

foreign

currencies

Net

realized

gain

(loss)

from:

Investment

transactions

(net

of

foreign

taxes

of

$

–

,

$

(52)

and

$

–

,

respectively)

.....................

–

38,006

45,715

Investment

transactions

in

affiliated

Funds

............................................................

4,649

–

–

Foreign

currency

transactions

..........................................................................

–

(24)

–

Capital

gain

distributions

received

from

affiliated

Funds

..............................................

8,545

–

–

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

(net

of

foreign

taxes

of

$

–

,

$

(18)

and

$

–

,

respectively)

..................................

–

33,034

45,059

Investments

in

affiliated

Funds

.........................................................................

–

–

Translation

of

assets

and

liabilities

in

foreign

currencies

..............................................

–

–

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

foreign

currencies

13,252

71,045

90,774

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

19,017

$

75,670

$

101,681

(a) Class

shares

discontinued

operations

and

converted

to

Class

shares

on

May

1,

2025. Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands

Global

Emerging

Markets

Account

Government

&

High

Quality

Bond

Account

LargeCap

Growth

Account

I

Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

........................................................................

$

$

$

538

Dividends

...............................................................................................

1,884

–

2,580

Withholding

tax

........................................................................................

(195)

–

(14)

Interest

..................................................................................................

–

4,753

Securities

lending

-

net

.................................................................................

–

Total

Income

1,735

4,834

3,124

Expenses:

Management

and

investment

advisory

fees

............................................................

737

525

4,159

Chief

compliance

officer

expenses

.....................................................................

–

–

Custodian

fees

..........................................................................................

Directors'

expenses

.....................................................................................

Professional fees

.......................................................................................

Technology

fees

........................................................................................

Other

expenses

.........................................................................................

–

–

Total

Gross

Expenses

829

552

4,202

Less: Reimbursement

from

Manager

..................................................................

–

–

Total

Net

Expenses

829

552

4,104

Net

Investment

Income

(Loss)

906

4,282

(980)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments,

foreign

currencies

and

futures

Net

realized

gain

(loss)

from:

Investment

transactions

(net

of

foreign

taxes

of

$

(82)

,

$

–

and

$

–

,

respectively)

.....................

7,799

(1,942)

115,318

Foreign

currency

transactions

..........................................................................

(62)

–

–

Futures

contracts

.......................................................................................

–

(170)

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

(net

of

foreign

taxes

of

$

(115)

,

$

–

and

$

–

,

respectively)

.................................

14,672

6,102

(49,534)

Futures

contracts

.......................................................................................

–

Translation

of

assets

and

liabilities

in

foreign

currencies

..............................................

–

–

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments,

foreign

currencies

and

futures

22,411

4,018

66,184

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

23,317

$

8,300

$

65,204

Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands

LargeCap

S&P

500

Index

Account

LargeCap

S&P

500

Managed

Volatility

Index

Account

MidCap

Account

Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

........................................................................

$

1,907

$

$

Dividends

...............................................................................................

30,584

1,551

4,383

Withholding

tax

........................................................................................

(7)

(1)

(176)

Interest

..................................................................................................

–

Securities

lending

-

net

.................................................................................

Total

Income

32,539

1,836

4,301

Expenses:

Management

and

investment

advisory

fees

............................................................

4,743

3,435

Distribution

f

ees

-

Class

..............................................................................

N/A

Chief

compliance

officer

expenses

.....................................................................

–

Custodian

fees

..........................................................................................

Directors'

expenses

.....................................................................................

Professional fees

.......................................................................................

Technology

fees

........................................................................................

Other

expenses

.........................................................................................

Total

Expenses

5,049

3,598

Net

Investment

Income

(Loss)

27,490

1,340

703

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments,

futures

and

options

and

swaptions

Net

realized

gain

(loss)

from:

Investment

transactions

................................................................................

404,251

26,821

108,129

Futures

contracts

.......................................................................................

4,978

–

Options

and

swaptions

.................................................................................

–

1,404

–

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

.............................................................................................

(29,973)

(8,993)

(95,296)

Futures

contracts

.......................................................................................

(24)

(8)

–

Options

and

swaptions

.................................................................................

–

(120)

–

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments,

futures

and

options

and

swaptions

379,232

19,338

12,833

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

406,722

$

20,678

$

13,536

Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands

Principal

Capital

Appreciation

Account

Principal

LifeTime

2020

Account

Principal

LifeTime

2030

Account

Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

........................................................................

$

$

4,659

$

9,400

Dividends

...............................................................................................

2,230

–

–

Withholding

tax

........................................................................................

(20)

–

–

Interest

..................................................................................................

–

–

Total

Income

2,338

4,659

9,400

Expenses:

Management

and

investment

advisory

fees

............................................................

1,450

N/A

N/A

Distribution

f

ees

-

Class

..............................................................................

N/A

N/A

Custodian

fees

..........................................................................................

–

–

Directors'

expenses

.....................................................................................

Professional fees

.......................................................................................

Technology

fees

........................................................................................

Other

expenses

.........................................................................................

–

Total

Expenses

1,692

Net

Investment

Income

(Loss)

646

4,643

9,379

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

Net

realized

gain

(loss)

from:

Investment

transactions

................................................................................

19,447

–

–

Investment

transactions

in

affiliated

Funds

............................................................

–

4,664

8,629

Capital

gain

distributions

received

from

affiliated

Funds

..............................................

–

2,759

8,883

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

.............................................................................................

10,090

–

–

Investments

in

affiliated

Funds

.........................................................................

–

3,355

12,458

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

29,537

10,778

29,970

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

30,183

$

15,421

$

39,349

Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands

Principal

LifeTime

2040

Account

Principal

LifeTime

2050

Account

Principal

LifeTime

2060

Account

Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

........................................................................

$

5,373

$

2,101

$

828

Total

Income

5,373

2,101

828

Expenses:

Shareholder

reports

-

Class

...........................................................................

–

–

Directors'

expenses

.....................................................................................

Professional fees

.......................................................................................

Technology

fees

........................................................................................

Total

Expenses

Net

Investment

Income

(Loss)

5,355

2,085

814

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

Net

realized

gain

(loss)

from:

Investment

transactions

in

affiliated

Funds

............................................................

3,804

1,911

Capital

gain

distributions

received

from

affiliated

Funds

..............................................

8,228

4,427

1,807

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

in

affiliated

Funds

.........................................................................

12,276

6,486

2,593

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

24,308

12,824

4,812

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

29,663

$

14,909

$

5,626

Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands

Principal

LifeTime

Strategic

Income

Account

Real

Estate

Securities

Account

SAM

Balanced

Portfolio

Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

........................................................................

$

1,847

$

$

15,098

Dividends

...............................................................................................

–

7,950

–

Interest

..................................................................................................

–

–

Total

Income

1,847

8,074

15,098

Expenses:

Management

and

investment

advisory

fees

............................................................

N/A

1,944

1,302

Distribution

f

ees

-

Class

..............................................................................

N/A

Custodian

fees

..........................................................................................

–

Directors'

expenses

.....................................................................................

Professional fees

.......................................................................................

Technology

fees

........................................................................................

Other

expenses

.........................................................................................

–

Total

Expenses

2,211

1,703

Net

Investment

Income

(Loss)

1,832

5,863

13,395

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments,

foreign

currencies

and

futures

Net

realized

gain

(loss)

from:

Investment

transactions

................................................................................

–

(2,772)

(33)

Investment

transactions

in

affiliated

Funds

............................................................

705

–

39,894

Foreign

currency

transactions

..........................................................................

–

–

(1)

Futures

contracts

.......................................................................................

–

–

(69)

Capital

gain

distributions

received

from

affiliated

Funds

..............................................

908

–

16,850

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

.............................................................................................

–

(38)

–

Investments

in

affiliated

Funds

.........................................................................

1,948

–

3,710

Futures

contracts

.......................................................................................

–

–

(31)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments,

foreign

currencies

and

futures

3,561

(2,810)

60,320

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

5,393

$

3,053

$

73,715

Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands

SAM

Conservative

Balanced

Portfolio

SAM

Conservative

Growth

Portfolio

SAM

Flexible

Income

Portfolio

Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

........................................................................

$

5,015

$

9,394

$

4,022

Total

Income

5,015

9,394

4,022

Expenses:

Management

and

investment

advisory

fees

............................................................

941

Distribution

f

ees

-

Class

..............................................................................

Custodian

fees

..........................................................................................

–

–

Directors'

expenses

.....................................................................................

Professional fees

.......................................................................................

Technology

fees

........................................................................................

Other

expenses

.........................................................................................

–

–

Total

Expenses

1,467

Net

Investment

Income

(Loss)

4,550

7,927

3,653

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments,

foreign

currencies

and

futures

Net

realized

gain

(loss)

from:

Investment

transactions

................................................................................

(7)

(28)

(5)

Investment

transactions

in

affiliated

Funds

............................................................

6,973

35,353

1,764

Foreign

currency

transactions

..........................................................................

(1)

–

(1)

Futures

contracts

.......................................................................................

(63)

–

(65)

Capital

gain

distributions

received

from

affiliated

Funds

..............................................

2,835

17,087

1,248

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

in

affiliated

Funds

.........................................................................

3,067

(1,292)

4,559

Futures

contracts

.......................................................................................

(25)

–

(25)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments,

foreign

currencies

and

futures

12,779

51,120

7,475

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

17,329

$

59,047

$

11,128

Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands

SAM

Strategic

Growth

Portfolio

Short-Term

Income

Account

SmallCap

Account

Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

........................................................................

$

8,815

$

$

Dividends

...............................................................................................

–

–

1,659

Withholding

tax

........................................................................................

–

–

(12)

Interest

..................................................................................................

–

5,566

Securities

lending

-

net

.................................................................................

–

Total

Income

8,815

5,734

1,730

Expenses:

Management

and

investment

advisory

fees

............................................................

1,061

516

1,388

Distribution

f

ees

-

Class

..............................................................................

588

N/A

Custodian

fees

..........................................................................................

Directors'

expenses

.....................................................................................

Professional fees

.......................................................................................

Technology

fees

........................................................................................

Other

expenses

.........................................................................................

Total

Expenses

1,677

540

1,435

Net

Investment

Income

(Loss)

7,138

5,194

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

futures

Net

realized

gain

(loss)

from:

Investment

transactions

................................................................................

(44)

(25)

13,147

Investment

transactions

in

affiliated

Funds

............................................................

28,594

–

–

Futures

contracts

.......................................................................................

–

–

Capital

gain

distributions

received

from

affiliated

Funds

..............................................

24,686

–

–

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

.............................................................................................

–

1,586

10,370

Investments

in

affiliated

Funds

.........................................................................

11,282

–

–

Futures

contracts

.......................................................................................

–

–

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

futures

64,518

1,685

23,517

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

71,656

$

6,879

$

23,812

Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account

(a) U.S.

LargeCap

S&P

500

Index

Buffer

January

Account

(b) U.S.

LargeCap

S&P

500

Index

Buffer

July

Account

(c) Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

........................................................................

$

$

$

Dividends

...............................................................................................

554

628

Interest

..................................................................................................

–

Total

Income

564

637

Expenses:

Management

and

investment

advisory

fees

............................................................

Distribution

f

ees

-

Class

..............................................................................

Custodian

fees

..........................................................................................

Directors'

expenses

.....................................................................................

Professional fees

.......................................................................................

Technology

fees

........................................................................................

Other

expenses

.........................................................................................

Total

Gross

Expenses

562

Less:

Reimbursement

from

Manager

-

Class

........................................................

Total

Net

Expenses

552

Net

Investment

Income

(Loss)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

options

and

swaptions

Net

realized

gain

(loss)

from:

Investment

transactions

................................................................................

1,513

3,933

7,352

Options

and

swaptions

.................................................................................

1,003

910

867

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

.............................................................................................

2,816

611

Options

and

swaptions

.................................................................................

(600)

(18)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

options

and

swaptions

4,732

5,279

8,937

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

4,788

$

5,360

$

9,022

(a) Effective

May

1,

2025,

U.S.

LargeCap

Buffer

April

Account

changed

its

name

to

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account.

(b) Effective

May

1,

2025,

U.S.

LargeCap

Buffer

January

Account

changed

its

name

to

U.S.

LargeCap

S&P

500

Index

Buffer

January

Account.

(c) Effective

May

1,

2025,

U.S.

LargeCap

Buffer

July

Account

changed

its

name

to

U.S.

LargeCap

S&P

500

Index

Buffer

July

Account.

Statements

of

Operations

Principal

Variable

Contracts

Funds,

Inc.

Year

Ended

December

31,

2025

See

accompanying

notes.

Amounts

in

thousands

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account

(a) Net

Investment

Income

(Loss)

Income:

Dividends

from

affiliated

Funds

............................................................................................................................

$

Dividends

...................................................................................................................................................

769

Total

Income

782

Expenses:

Management

and

investment

advisory

fees

................................................................................................................

Distribution

f

ees

-

Class

..................................................................................................................................

Custodian

fees

..............................................................................................................................................

Directors'

expenses

.........................................................................................................................................

Professional fees

...........................................................................................................................................

Technology

fees

............................................................................................................................................

Other

expenses

.............................................................................................................................................

Total

Gross

Expenses

663

Less:

Reimbursement

from

Manager

-

Class

............................................................................................................

Total

Net

Expenses

654

Net

Investment

Income

(Loss)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

options

and

swaptions

Net

realized

gain

(loss)

from:

Investment

transactions

....................................................................................................................................

2,942

Options

and

swaptions

.....................................................................................................................................

1,371

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

.................................................................................................................................................

2,666

Options

and

swaptions

.....................................................................................................................................

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

options

and

swaptions

7,089

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

7,217

(a) Effective

May

1,

2025,

U.S.

LargeCap

Buffer

October

Account

changed

its

name

to

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account.

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Blue

Chip

Account

Year

Ended

December

31,

2025

(a) Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

(112)

$

(85)

Net

realized

gain

(loss)

on

investments

..............................................................................................

3,176

566

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

...............................................................

(703)

3,330

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

2,361

3,811

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

–

–

Total

Dividends

and

Distributions

–

–

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(1,582)

3,626

Total

Increase

(Decrease)

in

Net

Assets

779

7,437

Net

Assets

Beginning

of

period

..................................................................................................................

23,633

16,196

End

of

period

........................................................................................................................

$

24,412

$

23,633

Class

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

(a),

(b) Dollars:

Sold

...................................................................................................

$

26,711

$

2,072

Redeemed

...............................................................................................

(4,843)

(25,522)

Net

Increase

(Decrease)

$

21,868

$

(23,450)

Shares:

Sold

...................................................................................................

1,804

Redeemed

...............................................................................................

(296)

(1,735)

Net

Increase

(Decrease)

1,508

(1,596)

Year

Ended

December

31,

2024

Dollars:

Sold

...................................................................................................

N/A

$

6,681

Redeemed

...............................................................................................

N/A

(3,055)

Net

Increase

(Decrease)

N/A

$

3,626

Shares:

Sold

...................................................................................................

N/A

Redeemed

...............................................................................................

N/A

(219)

Net

Increase

(Decrease)

N/A

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

(a),

(b) From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

–

$

–

Total

Dividends

and

Distributions

$

–

$

–

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

N/A

$

–

Total

Dividends

and

Distributions

N/A

$

–

(a) Class

shares

discontinued

operations

and

converted

to

Class

shares

on

May

1,

2025. (b) Period

from

April

30,

2025,

date

operations

commenced,

through

December

31,

2025

for

Class

shares.

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Bond

Market

Index

Account

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

70,652

$

80,215

Net

realized

gain

(loss)

on

investments

..............................................................................................

(50,345)

(50,594)

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

...............................................................

114,821

(132)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

135,128

29,489

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(79,109)

(71,809)

Total

Dividends

and

Distributions

(79,109)

(71,809)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(414,154)

(237,675)

Total

Increase

(Decrease)

in

Net

Assets

(358,135)

(279,995)

Net

Assets

Beginning

of

period

..................................................................................................................

2,160,284

2,440,279

End

of

period

........................................................................................................................

$

1,802,149

$

2,160,284

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

..............................................................................................................

$

228,489

Reinvested

.........................................................................................................

79,109

Redeemed

..........................................................................................................

(721,752)

Net

Increase

(Decrease)

$

(414,154)

Shares:

Sold

..............................................................................................................

24,215

Reinvested

.........................................................................................................

8,407

Redeemed

..........................................................................................................

(76,535)

Net

Increase

(Decrease)

(43,913)

Year

Ended

December

31,

2024

Dollars:

Sold

..............................................................................................................

$

339,696

Reinvested

.........................................................................................................

71,809

Redeemed

..........................................................................................................

(649,180)

Net

Increase

(Decrease)

$

(237,675)

Shares:

Sold

..............................................................................................................

36,541

Reinvested

.........................................................................................................

7,527

Redeemed

..........................................................................................................

(69,268)

Net

Increase

(Decrease)

(25,200)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(79,109)

Total

Dividends

and

Distributions

$

(79,109)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(71,809)

Total

Dividends

and

Distributions

$

(71,809)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Core

Plus

Bond

Account

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

10,202

$

8,727

Net

realized

gain

(loss)

on

investments

,

futures

and

swap

agreements

..............................................................

(1,094)

(6,583)

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

futures

...................................................

6,173

(91)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

15,281

2,053

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(8,750)

(6,636)

Total

Dividends

and

Distributions

(8,750)

(6,636)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

34,900

9,935

Total

Increase

(Decrease)

in

Net

Assets

41,431

5,352

Net

Assets

Beginning

of

period

..................................................................................................................

204,623

199,271

End

of

period

........................................................................................................................

$

246,054

$

204,623

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

..............................................................................................................

$

66,382

Reinvested

.........................................................................................................

8,750

Redeemed

..........................................................................................................

(40,232)

Net

Increase

(Decrease)

$

34,900

Shares:

Sold

..............................................................................................................

6,883

Reinvested

.........................................................................................................

907

Redeemed

..........................................................................................................

(4,181)

Net

Increase

(Decrease)

3,609

Year

Ended

December

31,

2024

Dollars:

Sold

..............................................................................................................

$

35,483

Reinvested

.........................................................................................................

6,636

Redeemed

..........................................................................................................

(32,184)

Net

Increase

(Decrease)

$

9,935

Shares:

Sold

..............................................................................................................

3,717

Reinvested

.........................................................................................................

678

Redeemed

..........................................................................................................

(3,359)

Net

Increase

(Decrease)

1,036

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(8,750)

Total

Dividends

and

Distributions

$

(8,750)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(6,636)

Total

Dividends

and

Distributions

$

(6,636)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Diversified

Balanced

Account

Year

Ended

December

31,

2025

(a) Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

14,571

$

15,047

Net

realized

gain

(loss)

on

investments

..............................................................................................

68,992

73,665

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

...............................................................

(20,587)

(23,113)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

62,976

65,599

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(76,586)

(33,327)

Total

Dividends

and

Distributions

(76,586)

(33,327)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(105,078)

(147,231)

Total

Increase

(Decrease)

in

Net

Assets

(118,688)

(114,959)

Net

Assets

Beginning

of

period

..................................................................................................................

622,231

737,190

End

of

period

........................................................................................................................

$

503,543

$

622,231

Class

Class

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

(a) Dollars:

Sold

.........................................................................................

$

803

$

5,519

$

Reinvested

....................................................................................

5,029

71,556

–

Redeemed

.....................................................................................

(4,546)

(181,021)

(2,518)

Net

Increase

(Decrease)

$

1,286

$

(103,946)

$

(2,418)

Shares:

Sold

.........................................................................................

Reinvested

....................................................................................

5,085

–

Redeemed

.....................................................................................

(307)

(12,141)

(173)

Net

Increase

(Decrease)

(6,684)

(166)

Year

Ended

December

31,

2024

Dollars:

Sold

.........................................................................................

$

1,470

$

5,208

$

Reinvested

....................................................................................

1,798

31,410

Redeemed

.....................................................................................

(4,277)

(183,131)

(244)

Net

Increase

(Decrease)

$

(1,009)

$

(146,513)

$

Shares:

Sold

.........................................................................................

Reinvested

....................................................................................

2,112

Redeemed

.....................................................................................

(289)

(12,284)

(17)

Net

Increase

(Decrease)

(68)

(9,820)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

(a) From

net

investment

income

and

net

realized

gain

on

investments

.............................................

$

(5,029)

$

(71,557)

$

–

Total

Dividends

and

Distributions

$

(5,029)

$

(71,557)

$

–

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

.............................................

$

(1,798)

$

(31,410)

$

(119)

Total

Dividends

and

Distributions

$

(1,798)

$

(31,410)

$

(119)

(a) Class

shares

discontinued

operations

and

converted

to

Class

shares

on

May

1,

2025. Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Diversified

Balanced

Adaptive

Allocation

Account

Year

Ended

December

31,

2025

(a) Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

5,951

$

5,289

Net

realized

gain

(loss)

on

investments

and

futures

.................................................................................

1,936

17,103

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

...............................................................

7,082

(2,297)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

14,969

20,095

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(20,758)

(6,924)

Total

Dividends

and

Distributions

(20,758)

(6,924)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(12,243)

(19,577)

Total

Increase

(Decrease)

in

Net

Assets

(18,032)

(6,406)

Net

Assets

Beginning

of

period

..................................................................................................................

234,916

241,322

End

of

period

........................................................................................................................

$

216,884

$

234,916

Class

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

(a) Dollars:

Sold

...................................................................................................

$

2,226

–

Reinvested

..............................................................................................

20,758

–

Redeemed

...............................................................................................

(35,216)

(11)

Net

Increase

(Decrease)

$

(12,232)

$

(11)

Shares:

Sold

...................................................................................................

–

Reinvested

..............................................................................................

1,773

–

Redeemed

...............................................................................................

(2,902)

(1)

Net

Increase

(Decrease)

(946)

(1)

Year

Ended

December

31,

2024

Dollars:

Sold

...................................................................................................

$

6,292

–

Reinvested

..............................................................................................

6,924

–

Redeemed

...............................................................................................

(32,793)

–

Net

Increase

(Decrease)

$

(19,577)

–

Shares:

Sold

...................................................................................................

517

–

Reinvested

..............................................................................................

563

–

Redeemed

...............................................................................................

(2,677)

–

Net

Increase

(Decrease)

(1,597)

–

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

(a) From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(20,758)

$

–

Total

Dividends

and

Distributions

$

(20,758)

$

–

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(6,924)

$

–

Total

Dividends

and

Distributions

$

(6,924)

$

–

(a) Class

shares

discontinued

operations

and

converted

to

Class

shares

on

May

1,

2025. Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Diversified

Balanced

Strategic

Allocation

Account

Year

Ended

December

31,

2025

(a) Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

2,504

$

2,730

Net

realized

gain

(loss)

on

investments

..............................................................................................

11,319

9,293

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

...............................................................

(2,974)

(1,075)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

10,849

10,948

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(10,301)

(5,495)

Total

Dividends

and

Distributions

(10,301)

(5,495)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(25,463)

(27,049)

Total

Increase

(Decrease)

in

Net

Assets

(24,915)

(21,596)

Net

Assets

Beginning

of

period

..................................................................................................................

112,532

134,128

End

of

period

........................................................................................................................

$

87,617

$

112,532

Class

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

(a) Dollars:

Sold

...................................................................................................

$

1,467

–

Reinvested

..............................................................................................

10,301

–

Redeemed

...............................................................................................

(37,221)

(10)

Net

Increase

(Decrease)

$

(25,453)

$

(10)

Shares:

Sold

...................................................................................................

–

Reinvested

..............................................................................................

866

–

Redeemed

...............................................................................................

(3,015)

(1)

Net

Increase

(Decrease)

(2,029)

(1)

Year

Ended

December

31,

2024

Dollars:

Sold

...................................................................................................

$

3,196

–

Reinvested

..............................................................................................

5,494

Redeemed

...............................................................................................

(35,740)

–

Net

Increase

(Decrease)

$

(27,050)

$

Shares:

Sold

...................................................................................................

–

Reinvested

..............................................................................................

–

Redeemed

...............................................................................................

(2,936)

–

Net

Increase

(Decrease)

(2,223)

–

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

(a) From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(10,301)

$

–

Total

Dividends

and

Distributions

$

(10,301)

$

–

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(5,494)

$

(1)

Total

Dividends

and

Distributions

$

(5,494)

$

(1)

(a) Class

shares

discontinued

operations

and

converted

to

Class

shares

on

May

1,

2025. Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Diversified

Growth

Account

Year

Ended

December

31,

2025

(a) Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

46,230

$

54,059

Net

realized

gain

(loss)

on

investments

..............................................................................................

354,689

410,514

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

...............................................................

(138,029)

(123,795)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

262,890

340,778

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(374,385)

(134,538)

Total

Dividends

and

Distributions

(374,385)

(134,538)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(419,675)

(899,482)

Total

Increase

(Decrease)

in

Net

Assets

(531,170)

(693,242)

Net

Assets

Beginning

of

period

..................................................................................................................

2,383,994

3,077,236

End

of

period

........................................................................................................................

$

1,852,824

$

2,383,994

Class

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

(a) Dollars:

Sold

...................................................................................................

$

10,507

$

Reinvested

..............................................................................................

374,385

–

Redeemed

...............................................................................................

(803,471)

(1,112)

Net

Increase

(Decrease)

$

(418,579)

$

(1,096)

Shares:

Sold

...................................................................................................

564

Reinvested

..............................................................................................

22,365

–

Redeemed

...............................................................................................

(43,712)

(62)

Net

Increase

(Decrease)

(20,783)

(61)

Year

Ended

December

31,

2024

Dollars:

Sold

...................................................................................................

$

79,775

$

793

Reinvested

..............................................................................................

134,479

Redeemed

...............................................................................................

(1,114,544)

(44)

Net

Increase

(Decrease)

$

(900,290)

$

808

Shares:

Sold

...................................................................................................

4,326

Reinvested

..............................................................................................

7,341

Redeemed

...............................................................................................

(60,309)

(2)

Net

Increase

(Decrease)

(48,642)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

(a) From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(374,385)

$

–

Total

Dividends

and

Distributions

$

(374,385)

$

–

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(134,479)

$

(59)

Total

Dividends

and

Distributions

$

(134,479)

$

(59)

(a) Class

shares

discontinued

operations

and

converted

to

Class

shares

on

May

1,

2025. Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Diversified

Growth

Adaptive

Allocation

Account

Year

Ended

December

31,

2025

(a) Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

34,672

$

31,935

Net

realized

gain

(loss)

on

investments

and

futures

.................................................................................

21,941

106,349

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

...............................................................

46,224

18,221

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

102,837

156,505

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(132,936)

(48,169)

Total

Dividends

and

Distributions

(132,936)

(48,169)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(65,578)

Total

Increase

(Decrease)

in

Net

Assets

(95,677)

108,447

Net

Assets

Beginning

of

period

..................................................................................................................

1,548,797

1,440,350

End

of

period

........................................................................................................................

$

1,453,120

$

1,548,797

Class

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

(a) Dollars:

Sold

...................................................................................................

$

6,951

–

Reinvested

..............................................................................................

132,936

–

Redeemed

...............................................................................................

(205,453)

(12)

Net

Increase

(Decrease)

$

(65,566)

$

(12)

Shares:

Sold

...................................................................................................

527

–

Reinvested

..............................................................................................

10,443

–

Redeemed

...............................................................................................

(15,656)

(1)

Net

Increase

(Decrease)

(4,686)

(1)

Year

Ended

December

31,

2024

Dollars:

Sold

...................................................................................................

$

61,654

–

Reinvested

..............................................................................................

48,169

–

Redeemed

...............................................................................................

(109,712)

–

Net

Increase

(Decrease)

$

–

Shares:

Sold

...................................................................................................

4,727

–

Reinvested

..............................................................................................

3,644

–

Redeemed

...............................................................................................

(8,285)

–

Net

Increase

(Decrease)

–

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

(a) From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(132,936)

$

–

Total

Dividends

and

Distributions

$

(132,936)

$

–

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(48,169)

$

–

Total

Dividends

and

Distributions

$

(48,169)

$

–

(a) Class

shares

discontinued

operations

and

converted

to

Class

shares

on

May

1,

2025. Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Diversified

Growth

Strategic

Allocation

Account

Year

Ended

December

31,

2025

(a) Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

4,985

$

5,399

Net

realized

gain

(loss)

on

investments

..............................................................................................

32,453

26,535

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

...............................................................

(9,890)

(2,170)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

27,548

29,764

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(25,917)

(13,836)

Total

Dividends

and

Distributions

(25,917)

(13,836)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(48,819)

(66,029)

Total

Increase

(Decrease)

in

Net

Assets

(47,188)

(50,101)

Net

Assets

Beginning

of

period

..................................................................................................................

243,349

293,450

End

of

period

........................................................................................................................

$

196,161

$

243,349

Class

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

(a) Dollars:

Sold

...................................................................................................

$

3,424

–

Reinvested

..............................................................................................

25,917

–

Redeemed

...............................................................................................

(78,148)

(12)

Net

Increase

(Decrease)

$

(48,807)

$

(12)

Shares:

Sold

...................................................................................................

–

Reinvested

..............................................................................................

1,998

–

Redeemed

...............................................................................................

(5,806)

(1)

Net

Increase

(Decrease)

(3,550)

(1)

Year

Ended

December

31,

2024

Dollars:

Sold

...................................................................................................

$

26,949

–

Reinvested

..............................................................................................

13,835

Redeemed

...............................................................................................

(106,814)

–

Net

Increase

(Decrease)

$

(66,030)

$

Shares:

Sold

...................................................................................................

2,013

–

Reinvested

..............................................................................................

1,051

–

Redeemed

...............................................................................................

(8,032)

–

Net

Increase

(Decrease)

(4,968)

–

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

(a) From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(25,917)

$

–

Total

Dividends

and

Distributions

$

(25,917)

$

–

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(13,835)

$

(1)

Total

Dividends

and

Distributions

$

(13,835)

$

(1)

(a) Class

shares

discontinued

operations

and

converted

to

Class

shares

on

May

1,

2025. Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Diversified

Income

Account

Year

Ended

December

31,

2025

(a) Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

5,765

$

5,561

Net

realized

gain

(loss)

on

investments

..............................................................................................

13,194

12,556

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

...............................................................

(1,769)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

19,017

16,348

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(15,111)

(9,381)

Total

Dividends

and

Distributions

(15,111)

(9,381)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(38,199)

(39,628)

Total

Increase

(Decrease)

in

Net

Assets

(34,293)

(32,661)

Net

Assets

Beginning

of

period

..................................................................................................................

214,392

247,053

End

of

period

........................................................................................................................

$

180,099

$

214,392

Class

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

(a) Dollars:

Sold

...................................................................................................

$

13,695

–

Reinvested

..............................................................................................

15,111

–

Redeemed

...............................................................................................

(66,840)

(165)

Net

Increase

(Decrease)

$

(38,034)

$

(165)

Shares:

Sold

...................................................................................................

1,042

–

Reinvested

..............................................................................................

1,167

–

Redeemed

...............................................................................................

(5,087)

(12)

Net

Increase

(Decrease)

(2,878)

(12)

Year

Ended

December

31,

2024

Dollars:

Sold

...................................................................................................

$

27,116

$

Reinvested

..............................................................................................

9,377

Redeemed

...............................................................................................

(76,195)

(4)

Net

Increase

(Decrease)

$

(39,702)

$

Shares:

Sold

...................................................................................................

2,098

Reinvested

..............................................................................................

719

–

Redeemed

...............................................................................................

(5,886)

–

Net

Increase

(Decrease)

(3,069)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

(a) From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(15,111)

$

–

Total

Dividends

and

Distributions

$

(15,111)

$

–

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(9,377)

$

(4)

Total

Dividends

and

Distributions

$

(9,377)

$

(4)

(a) Class

shares

discontinued

operations

and

converted

to

Class

shares

on

May

1,

2025. Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Diversified

International

Account

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

4,625

$

4,092

Net

realized

gain

(loss)

on

investments

and

foreign

currencies

.....................................................................

37,982

21,407

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

foreign

currencies

.......................................

33,063

(12,916)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

75,670

12,583

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(21,826)

(8,034)

Total

Dividends

and

Distributions

(21,826)

(8,034)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(42,901)

(15,276)

Total

Increase

(Decrease)

in

Net

Assets

10,943

(10,727)

Net

Assets

Beginning

of

period

..................................................................................................................

245,348

256,075

End

of

period

........................................................................................................................

$

256,291

$

245,348

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

..............................................................................................................

$

23,005

Reinvested

.........................................................................................................

21,826

Redeemed

..........................................................................................................

(87,732)

Net

Increase

(Decrease)

$

(42,901)

Shares:

Sold

..............................................................................................................

1,279

Reinvested

.........................................................................................................

1,188

Redeemed

..........................................................................................................

(4,774)

Net

Increase

(Decrease)

(2,307)

Year

Ended

December

31,

2024

Dollars:

Sold

..............................................................................................................

$

16,604

Reinvested

.........................................................................................................

8,034

Redeemed

..........................................................................................................

(39,914)

Net

Increase

(Decrease)

$

(15,276)

Shares:

Sold

..............................................................................................................

1,014

Reinvested

.........................................................................................................

Redeemed

..........................................................................................................

(2,433)

Net

Increase

(Decrease)

(933)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(21,826)

Total

Dividends

and

Distributions

$

(21,826)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(8,034)

Total

Dividends

and

Distributions

$

(8,034)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Equity

Income

Account

Year

Ended

December

31,

2025

(a) Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

10,907

$

12,921

Net

realized

gain

(loss)

on

investments

..............................................................................................

45,715

72,860

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

...............................................................

45,059

14,740

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

101,681

100,521

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(79,474)

(21,125)

Total

Dividends

and

Distributions

(79,474)

(21,125)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(33,795)

(53,326)

Total

Increase

(Decrease)

in

Net

Assets

(11,588)

26,070

Net

Assets

Beginning

of

period

..................................................................................................................

691,072

665,002

End

of

period

........................................................................................................................

$

679,484

$

691,072

Class

Class

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

(a) Dollars:

Sold

.........................................................................................

$

48,224

$

14,518

$

790

Reinvested

....................................................................................

69,634

9,840

–

Redeemed

.....................................................................................

(162,230)

(11,787)

(2,784)

Net

Increase

(Decrease)

$

(44,372)

$

12,571

$

(1,994)

Shares:

Sold

.........................................................................................

1,548

Reinvested

....................................................................................

2,256

–

Redeemed

.....................................................................................

(5,158)

(383)

(93)

Net

Increase

(Decrease)

(1,354)

(68)

Year

Ended

December

31,

2024

Dollars:

Sold

.........................................................................................

$

30,615

$

5,315

$

1,360

Reinvested

....................................................................................

19,040

2,029

Redeemed

.....................................................................................

(104,378)

(6,739)

(624)

Net

Increase

(Decrease)

$

(54,723)

$

605

$

792

Shares:

Sold

.........................................................................................

1,031

Reinvested

....................................................................................

625

Redeemed

.....................................................................................

(3,458)

(229)

(20)

Net

Increase

(Decrease)

(1,802)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

(a) From

net

investment

income

and

net

realized

gain

on

investments

.............................................

$

(69,634)

$

(9,840)

$

–

Total

Dividends

and

Distributions

$

(69,634)

$

(9,840)

$

–

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

.............................................

$

(19,040)

$

(2,029)

$

(56)

Total

Dividends

and

Distributions

$

(19,040)

$

(2,029)

$

(56)

(a) Class

shares

discontinued

operations

and

converted

to

Class

shares

on

May

1,

2025. Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Global

Emerging

Markets

Account

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

906

$

839

Net

realized

gain

(loss)

on

investments

and

foreign

currencies

.....................................................................

7,737

3,926

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

foreign

currencies

.......................................

14,674

(313)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

23,317

4,452

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(1,303)

(1,362)

Total

Dividends

and

Distributions

(1,303)

(1,362)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(5,884)

(5,022)

Total

Increase

(Decrease)

in

Net

Assets

16,130

(1,932)

Net

Assets

Beginning

of

period

..................................................................................................................

65,475

67,407

End

of

period

........................................................................................................................

$

81,605

$

65,475

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

..............................................................................................................

$

7,352

Reinvested

.........................................................................................................

1,303

Redeemed

..........................................................................................................

(14,539)

Net

Increase

(Decrease)

$

(5,884)

Shares:

Sold

..............................................................................................................

Reinvested

.........................................................................................................

Redeemed

..........................................................................................................

(802)

Net

Increase

(Decrease)

(327)

Year

Ended

December

31,

2024

Dollars:

Sold

..............................................................................................................

$

4,726

Reinvested

.........................................................................................................

1,362

Redeemed

..........................................................................................................

(11,110)

Net

Increase

(Decrease)

$

(5,022)

Shares:

Sold

..............................................................................................................

Reinvested

.........................................................................................................

Redeemed

..........................................................................................................

(717)

Net

Increase

(Decrease)

(320)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(1,303)

Total

Dividends

and

Distributions

$

(1,303)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(1,362)

Total

Dividends

and

Distributions

$

(1,362)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Government

&

High

Quality

Bond

Account

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

4,282

$

3,903

Net

realized

gain

(loss)

on

investments

and

futures

.................................................................................

(2,112)

(3,382)

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

futures

...................................................

6,130

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

8,300

825

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(3,876)

(3,581)

Total

Dividends

and

Distributions

(3,876)

(3,581)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(8,681)

(7,578)

Total

Increase

(Decrease)

in

Net

Assets

(4,257)

(10,334)

Net

Assets

Beginning

of

period

..................................................................................................................

111,374

121,708

End

of

period

........................................................................................................................

$

107,117

$

111,374

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

..............................................................................................................

$

14,225

Reinvested

.........................................................................................................

3,876

Redeemed

..........................................................................................................

(26,782)

Net

Increase

(Decrease)

$

(8,681)

Shares:

Sold

..............................................................................................................

1,682

Reinvested

.........................................................................................................

Redeemed

..........................................................................................................

(3,169)

Net

Increase

(Decrease)

(1,031)

Year

Ended

December

31,

2024

Dollars:

Sold

..............................................................................................................

$

11,650

Reinvested

.........................................................................................................

3,581

Redeemed

..........................................................................................................

(22,809)

Net

Increase

(Decrease)

$

(7,578)

Shares:

Sold

..............................................................................................................

1,396

Reinvested

.........................................................................................................

Redeemed

..........................................................................................................

(2,733)

Net

Increase

(Decrease)

(919)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(3,876)

Total

Dividends

and

Distributions

$

(3,876)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(3,581)

Total

Dividends

and

Distributions

$

(3,581)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

LargeCap

Growth

Account

I

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

(980)

$

(621)

Net

realized

gain

(loss)

on

investments

and

futures

.................................................................................

115,709

104,008

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

futures

...................................................

(49,525)

36,695

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

65,204

140,082

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(93,536)

(30,731)

Total

Dividends

and

Distributions

(93,536)

(30,731)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

536

(44,213)

Total

Increase

(Decrease)

in

Net

Assets

(27,796)

65,138

Net

Assets

Beginning

of

period

..................................................................................................................

645,210

580,072

End

of

period

........................................................................................................................

$

617,414

$

645,210

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

..............................................................................................................

$

40,313

Reinvested

.........................................................................................................

93,536

Redeemed

..........................................................................................................

(133,313)

Net

Increase

(Decrease)

$

536

Shares:

Sold

..............................................................................................................

844

Reinvested

.........................................................................................................

2,047

Redeemed

..........................................................................................................

(2,771)

Net

Increase

(Decrease)

Year

Ended

December

31,

2024

Dollars:

Sold

..............................................................................................................

$

44,420

Reinvested

.........................................................................................................

30,731

Redeemed

..........................................................................................................

(119,364)

Net

Increase

(Decrease)

$

(44,213)

Shares:

Sold

..............................................................................................................

976

Reinvested

.........................................................................................................

675

Redeemed

..........................................................................................................

(2,606)

Net

Increase

(Decrease)

(955)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(93,536)

Total

Dividends

and

Distributions

$

(93,536)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(30,731)

Total

Dividends

and

Distributions

$

(30,731)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

LargeCap

S&P

500

Index

Account

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

27,490

$

33,695

Net

realized

gain

(loss)

on

investments

and

futures

.................................................................................

409,229

528,056

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

futures

...................................................

(29,997)

60,470

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

406,722

622,221

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(451,260)

(204,909)

Total

Dividends

and

Distributions

(451,260)

(204,909)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(199,214)

(570,897)

Total

Increase

(Decrease)

in

Net

Assets

(243,752)

(153,585)

Net

Assets

Beginning

of

period

..................................................................................................................

2,633,906

2,787,491

End

of

period

........................................................................................................................

$

2,390,154

$

2,633,906

Class

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

...................................................................................................

$

225,218

$

6,832

Reinvested

..............................................................................................

437,683

13,577

Redeemed

...............................................................................................

(871,675)

(10,849)

Net

Increase

(Decrease)

$

(208,774)

$

9,560

Shares:

Sold

...................................................................................................

9,108

Reinvested

..............................................................................................

18,776

597

Redeemed

...............................................................................................

(34,905)

(443)

Net

Increase

(Decrease)

(7,021)

Year

Ended

December

31,

2024

Dollars:

Sold

...................................................................................................

$

181,051

$

12,721

Reinvested

..............................................................................................

200,078

4,831

Redeemed

...............................................................................................

(960,688)

(8,890)

Net

Increase

(Decrease)

$

(579,559)

$

8,662

Shares:

Sold

...................................................................................................

7,451

534

Reinvested

..............................................................................................

8,410

Redeemed

...............................................................................................

(39,491)

(372)

Net

Increase

(Decrease)

(23,630)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(437,683)

$

(13,577)

Total

Dividends

and

Distributions

$

(437,683)

$

(13,577)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(200,078)

$

(4,831)

Total

Dividends

and

Distributions

$

(200,078)

$

(4,831)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

LargeCap

S&P

500

Managed

Volatility

Index

Account

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

1,340

$

2,029

Net

realized

gain

(loss)

on

investments

,

futures

and

options

and

swaptions

........................................................

28,459

38,483

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

,

futures

and

options

and

swaptions

.........................

(9,121)

(6,086)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

20,678

34,426

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(29,943)

(18,687)

Total

Dividends

and

Distributions

(29,943)

(18,687)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(19,656)

(46,279)

Total

Increase

(Decrease)

in

Net

Assets

(28,921)

(30,540)

Net

Assets

Beginning

of

period

..................................................................................................................

147,935

178,475

End

of

period

........................................................................................................................

$

119,014

$

147,935

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

..............................................................................................................

$

9,133

Reinvested

.........................................................................................................

29,943

Redeemed

..........................................................................................................

(58,732)

Net

Increase

(Decrease)

$

(19,656)

Shares:

Sold

..............................................................................................................

541

Reinvested

.........................................................................................................

1,996

Redeemed

..........................................................................................................

(3,466)

Net

Increase

(Decrease)

(929)

Year

Ended

December

31,

2024

Dollars:

Sold

..............................................................................................................

$

10,119

Reinvested

.........................................................................................................

18,687

Redeemed

..........................................................................................................

(75,085)

Net

Increase

(Decrease)

$

(46,279)

Shares:

Sold

..............................................................................................................

576

Reinvested

.........................................................................................................

1,136

Redeemed

..........................................................................................................

(4,321)

Net

Increase

(Decrease)

(2,609)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(29,943)

Total

Dividends

and

Distributions

$

(29,943)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(18,687)

Total

Dividends

and

Distributions

$

(18,687)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

MidCap

Account

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

703

$

1,901

Net

realized

gain

(loss)

on

investments

..............................................................................................

108,129

87,732

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

...............................................................

(95,296)

28,524

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

13,536

118,157

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(78,835)

(56,394)

Total

Dividends

and

Distributions

(78,835)

(56,394)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(47,030)

17,899

Total

Increase

(Decrease)

in

Net

Assets

(112,329)

79,662

Net

Assets

Beginning

of

period

..................................................................................................................

694,392

614,730

End

of

period

........................................................................................................................

$

582,063

$

694,392

Class

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

...................................................................................................

$

23,079

$

3,686

Reinvested

..............................................................................................

72,610

6,225

Redeemed

...............................................................................................

(147,955)

(4,675)

Net

Increase

(Decrease)

$

(52,266)

$

5,236

Shares:

Sold

...................................................................................................

Reinvested

..............................................................................................

1,094

Redeemed

...............................................................................................

(2,162)

(71)

Net

Increase

(Decrease)

(728)

Year

Ended

December

31,

2024

Dollars:

Sold

...................................................................................................

$

73,092

$

4,143

Reinvested

..............................................................................................

52,321

4,073

Redeemed

...............................................................................................

(110,791)

(4,939)

Net

Increase

(Decrease)

$

14,622

$

3,277

Shares:

Sold

...................................................................................................

1,051

Reinvested

..............................................................................................

788

Redeemed

...............................................................................................

(1,609)

(73)

Net

Increase

(Decrease)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(72,610)

$

(6,225)

Total

Dividends

and

Distributions

$

(72,610)

$

(6,225)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(52,321)

$

(4,073)

Total

Dividends

and

Distributions

$

(52,321)

$

(4,073)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Principal

Capital

Appreciation

Account

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

646

$

1,028

Net

realized

gain

(loss)

on

investments

..............................................................................................

19,447

20,999

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

...............................................................

10,090

23,672

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

30,183

45,699

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(19,544)

(7,828)

Total

Dividends

and

Distributions

(19,544)

(7,828)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

13,987

Total

Increase

(Decrease)

in

Net

Assets

24,626

38,275

Net

Assets

Beginning

of

period

..................................................................................................................

221,600

183,325

End

of

period

........................................................................................................................

$

246,226

$

221,600

Class

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

...................................................................................................

$

11,941

$

16,701

Reinvested

..............................................................................................

12,022

7,522

Redeemed

...............................................................................................

(26,537)

(7,662)

Net

Increase

(Decrease)

$

(2,574)

$

16,561

Shares:

Sold

...................................................................................................

Reinvested

..............................................................................................

Redeemed

...............................................................................................

(614)

(180)

Net

Increase

(Decrease)

(55)

Year

Ended

December

31,

2024

Dollars:

Sold

...................................................................................................

$

6,747

$

19,832

Reinvested

..............................................................................................

5,479

2,349

Redeemed

...............................................................................................

(28,844)

(5,159)

Net

Increase

(Decrease)

$

(16,618)

$

17,022

Shares:

Sold

...................................................................................................

Reinvested

..............................................................................................

Redeemed

...............................................................................................

(717)

(130)

Net

Increase

(Decrease)

(414)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(12,022)

$

(7,522)

Total

Dividends

and

Distributions

$

(12,022)

$

(7,522)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(5,479)

$

(2,349)

Total

Dividends

and

Distributions

$

(5,479)

$

(2,349)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Principal

LifeTime

2020

Account

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

4,643

$

4,186

Net

realized

gain

(loss)

on

investments

..............................................................................................

7,423

7,107

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

...............................................................

3,355

(711)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

15,421

10,582

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(9,896)

(6,018)

Total

Dividends

and

Distributions

(9,896)

(6,018)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(11,385)

(11,205)

Total

Increase

(Decrease)

in

Net

Assets

(5,860)

(6,641)

Net

Assets

Beginning

of

period

..................................................................................................................

145,432

152,073

End

of

period

........................................................................................................................

$

139,572

$

145,432

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

..............................................................................................................

$

21,229

Reinvested

.........................................................................................................

9,896

Redeemed

..........................................................................................................

(42,510)

Net

Increase

(Decrease)

$

(11,385)

Shares:

Sold

..............................................................................................................

1,607

Reinvested

.........................................................................................................

751

Redeemed

..........................................................................................................

(3,196)

Net

Increase

(Decrease)

(838)

Year

Ended

December

31,

2024

Dollars:

Sold

..............................................................................................................

$

20,028

Reinvested

.........................................................................................................

6,018

Redeemed

..........................................................................................................

(37,251)

Net

Increase

(Decrease)

$

(11,205)

Shares:

Sold

..............................................................................................................

1,539

Reinvested

.........................................................................................................

Redeemed

..........................................................................................................

(2,892)

Net

Increase

(Decrease)

(889)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(9,896)

Total

Dividends

and

Distributions

$

(9,896)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(6,018)

Total

Dividends

and

Distributions

$

(6,018)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Principal

LifeTime

2030

Account

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

9,379

$

7,326

Net

realized

gain

(loss)

on

investments

..............................................................................................

17,512

16,864

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

...............................................................

12,458

822

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

39,349

25,012

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(22,194)

(9,364)

Total

Dividends

and

Distributions

(22,194)

(9,364)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

18,376

5,007

Total

Increase

(Decrease)

in

Net

Assets

35,531

20,655

Net

Assets

Beginning

of

period

..................................................................................................................

296,715

276,060

End

of

period

........................................................................................................................

$

332,246

$

296,715

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

..............................................................................................................

$

52,504

Reinvested

.........................................................................................................

22,194

Redeemed

..........................................................................................................

(56,322)

Net

Increase

(Decrease)

$

18,376

Shares:

Sold

..............................................................................................................

3,717

Reinvested

.........................................................................................................

1,562

Redeemed

..........................................................................................................

(3,960)

Net

Increase

(Decrease)

1,319

Year

Ended

December

31,

2024

Dollars:

Sold

..............................................................................................................

$

59,389

Reinvested

.........................................................................................................

9,364

Redeemed

..........................................................................................................

(63,746)

Net

Increase

(Decrease)

$

5,007

Shares:

Sold

..............................................................................................................

4,394

Reinvested

.........................................................................................................

683

Redeemed

..........................................................................................................

(4,705)

Net

Increase

(Decrease)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(22,194)

Total

Dividends

and

Distributions

$

(22,194)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(9,364)

Total

Dividends

and

Distributions

$

(9,364)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Principal

LifeTime

2040

Account

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

5,355

$

3,310

Net

realized

gain

(loss)

on

investments

..............................................................................................

12,032

11,690

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

...............................................................

12,276

2,339

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

29,663

17,339

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(14,146)

(5,065)

Total

Dividends

and

Distributions

(14,146)

(5,065)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

38,280

12,344

Total

Increase

(Decrease)

in

Net

Assets

53,797

24,618

Net

Assets

Beginning

of

period

..................................................................................................................

175,508

150,890

End

of

period

........................................................................................................................

$

229,305

$

175,508

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

..............................................................................................................

$

48,359

Reinvested

.........................................................................................................

14,146

Redeemed

..........................................................................................................

(24,225)

Net

Increase

(Decrease)

$

38,280

Shares:

Sold

..............................................................................................................

2,576

Reinvested

.........................................................................................................

743

Redeemed

..........................................................................................................

(1,283)

Net

Increase

(Decrease)

2,036

Year

Ended

December

31,

2024

Dollars:

Sold

..............................................................................................................

$

37,395

Reinvested

.........................................................................................................

5,065

Redeemed

..........................................................................................................

(30,116)

Net

Increase

(Decrease)

$

12,344

Shares:

Sold

..............................................................................................................

2,110

Reinvested

.........................................................................................................

Redeemed

..........................................................................................................

(1,714)

Net

Increase

(Decrease)

679

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(14,146)

Total

Dividends

and

Distributions

$

(14,146)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(5,065)

Total

Dividends

and

Distributions

$

(5,065)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Principal

LifeTime

2050

Account

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

2,085

$

1,255

Net

realized

gain

(loss)

on

investments

..............................................................................................

6,338

6,315

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

...............................................................

6,486

2,020

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

14,909

9,590

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(7,164)

(2,370)

Total

Dividends

and

Distributions

(7,164)

(2,370)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

10,432

4,435

Total

Increase

(Decrease)

in

Net

Assets

18,177

11,655

Net

Assets

Beginning

of

period

..................................................................................................................

82,359

70,704

End

of

period

........................................................................................................................

$

100,536

$

82,359

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

..............................................................................................................

$

18,971

Reinvested

.........................................................................................................

7,164

Redeemed

..........................................................................................................

(15,703)

Net

Increase

(Decrease)

$

10,432

Shares:

Sold

..............................................................................................................

1,023

Reinvested

.........................................................................................................

Redeemed

..........................................................................................................

(837)

Net

Increase

(Decrease)

566

Year

Ended

December

31,

2024

Dollars:

Sold

..............................................................................................................

$

18,056

Reinvested

.........................................................................................................

2,370

Redeemed

..........................................................................................................

(15,991)

Net

Increase

(Decrease)

$

4,435

Shares:

Sold

..............................................................................................................

1,039

Reinvested

.........................................................................................................

Redeemed

..........................................................................................................

(917)

Net

Increase

(Decrease)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(7,164)

Total

Dividends

and

Distributions

$

(7,164)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(2,370)

Total

Dividends

and

Distributions

$

(2,370)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Principal

LifeTime

2060

Account

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

814

$

Net

realized

gain

(loss)

on

investments

..............................................................................................

2,219

2,037

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

...............................................................

2,593

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

5,626

2,932

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(2,338)

(697)

Total

Dividends

and

Distributions

(2,338)

(697)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

7,587

5,877

Total

Increase

(Decrease)

in

Net

Assets

10,875

8,112

Net

Assets

Beginning

of

period

..................................................................................................................

29,544

21,432

End

of

period

........................................................................................................................

$

40,419

$

29,544

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

..............................................................................................................

$

12,416

Reinvested

.........................................................................................................

2,338

Redeemed

..........................................................................................................

(7,167)

Net

Increase

(Decrease)

$

7,587

Shares:

Sold

..............................................................................................................

680

Reinvested

.........................................................................................................

Redeemed

..........................................................................................................

(394)

Net

Increase

(Decrease)

Year

Ended

December

31,

2024

Dollars:

Sold

..............................................................................................................

$

10,266

Reinvested

.........................................................................................................

697

Redeemed

..........................................................................................................

(5,086)

Net

Increase

(Decrease)

$

5,877

Shares:

Sold

..............................................................................................................

603

Reinvested

.........................................................................................................

Redeemed

..........................................................................................................

(301)

Net

Increase

(Decrease)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(2,338)

Total

Dividends

and

Distributions

$

(2,338)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(697)

Total

Dividends

and

Distributions

$

(697)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Principal

LifeTime

Strategic

Income

Account

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

1,832

$

1,627

Net

realized

gain

(loss)

on

investments

..............................................................................................

1,613

1,436

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

...............................................................

1,948

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

5,393

3,398

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(3,008)

(1,531)

Total

Dividends

and

Distributions

(3,008)

(1,531)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(1,356)

(4,204)

Total

Increase

(Decrease)

in

Net

Assets

1,029

(2,337)

Net

Assets

Beginning

of

period

..................................................................................................................

53,521

55,858

End

of

period

........................................................................................................................

$

54,550

$

53,521

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

..............................................................................................................

$

10,672

Reinvested

.........................................................................................................

3,008

Redeemed

..........................................................................................................

(15,036)

Net

Increase

(Decrease)

$

(1,356)

Shares:

Sold

..............................................................................................................

906

Reinvested

.........................................................................................................

Redeemed

..........................................................................................................

(1,272)

Net

Increase

(Decrease)

(111)

Year

Ended

December

31,

2024

Dollars:

Sold

..............................................................................................................

$

11,705

Reinvested

.........................................................................................................

1,531

Redeemed

..........................................................................................................

(17,440)

Net

Increase

(Decrease)

$

(4,204)

Shares:

Sold

..............................................................................................................

1,020

Reinvested

.........................................................................................................

Redeemed

..........................................................................................................

(1,536)

Net

Increase

(Decrease)

(383)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(3,008)

Total

Dividends

and

Distributions

$

(3,008)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(1,531)

Total

Dividends

and

Distributions

$

(1,531)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Real

Estate

Securities

Account

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

5,863

$

3,832

Net

realized

gain

(loss)

on

investments

..............................................................................................

(2,772)

9,012

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

...............................................................

(38)

(9,966)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

3,053

2,878

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(12,924)

(8,016)

Total

Dividends

and

Distributions

(12,924)

(8,016)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

2,637

106,128

Total

Increase

(Decrease)

in

Net

Assets

(7,234)

100,990

Net

Assets

Beginning

of

period

..................................................................................................................

255,349

154,359

End

of

period

........................................................................................................................

$

248,115

$

255,349

Class

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

...................................................................................................

$

19,390

$

18,139

Reinvested

..............................................................................................

8,049

4,875

Redeemed

...............................................................................................

(24,400)

(23,416)

Net

Increase

(Decrease)

$

3,039

$

(402)

Shares:

Sold

...................................................................................................

1,066

994

Reinvested

..............................................................................................

Redeemed

...............................................................................................

(1,335)

(1,278)

Net

Increase

(Decrease)

(13)

Year

Ended

December

31,

2024

Dollars:

Sold

...................................................................................................

$

36,261

$

96,526

Reinvested

..............................................................................................

7,467

549

Redeemed

...............................................................................................

(31,272)

(3,403)

Net

Increase

(Decrease)

$

12,456

$

93,672

Shares:

Sold

...................................................................................................

1,940

5,054

Reinvested

..............................................................................................

Redeemed

...............................................................................................

(1,702)

(187)

Net

Increase

(Decrease)

618

4,895

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(8,049)

$

(4,875)

Total

Dividends

and

Distributions

$

(8,049)

$

(4,875)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(7,467)

$

(549)

Total

Dividends

and

Distributions

$

(7,467)

$

(549)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

SAM

Balanced

Portfolio

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

13,395

$

12,968

Net

realized

gain

(loss)

on

investments

,

foreign

currencies

and

futures

.............................................................

56,641

45,515

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

futures

...................................................

3,679

12,560

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

73,715

71,043

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(54,290)

(11,726)

Total

Dividends

and

Distributions

(54,290)

(11,726)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(43,015)

(64,894)

Total

Increase

(Decrease)

in

Net

Assets

(23,590)

(5,577)

Net

Assets

Beginning

of

period

..................................................................................................................

585,007

590,584

End

of

period

........................................................................................................................

$

561,417

$

585,007

Class

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

...................................................................................................

$

18,640

$

4,942

Reinvested

..............................................................................................

39,831

14,458

Redeemed

...............................................................................................

(98,110)

(22,776)

Net

Increase

(Decrease)

$

(39,639)

$

(3,376)

Shares:

Sold

...................................................................................................

1,191

Reinvested

..............................................................................................

2,595

961

Redeemed

...............................................................................................

(6,264)

(1,500)

Net

Increase

(Decrease)

(2,478)

(216)

Year

Ended

December

31,

2024

Dollars:

Sold

...................................................................................................

$

25,724

$

6,641

Reinvested

..............................................................................................

9,035

2,691

Redeemed

...............................................................................................

(94,113)

(14,872)

Net

Increase

(Decrease)

$

(59,354)

$

(5,540)

Shares:

Sold

...................................................................................................

1,730

Reinvested

..............................................................................................

601

Redeemed

...............................................................................................

(6,349)

(1,030)

Net

Increase

(Decrease)

(4,018)

(390)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(39,832)

$

(14,458)

Total

Dividends

and

Distributions

$

(39,832)

$

(14,458)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(9,035)

$

(2,691)

Total

Dividends

and

Distributions

$

(9,035)

$

(2,691)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

SAM

Conservative

Balanced

Portfolio

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

4,550

$

4,417

Net

realized

gain

(loss)

on

investments

,

foreign

currencies

and

futures

.............................................................

9,737

6,002

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

futures

...................................................

3,042

3,733

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

17,329

14,152

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(8,023)

(4,161)

Total

Dividends

and

Distributions

(8,023)

(4,161)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(11,192)

(11,997)

Total

Increase

(Decrease)

in

Net

Assets

(1,886)

(2,006)

Net

Assets

Beginning

of

period

..................................................................................................................

163,367

165,373

End

of

period

........................................................................................................................

$

161,481

$

163,367

Class

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

...................................................................................................

$

13,603

$

2,396

Reinvested

..............................................................................................

6,330

1,693

Redeemed

...............................................................................................

(31,714)

(3,500)

Net

Increase

(Decrease)

$

(11,781)

$

589

Shares:

Sold

...................................................................................................

1,112

Reinvested

..............................................................................................

517

Redeemed

...............................................................................................

(2,613)

(294)

Net

Increase

(Decrease)

(984)

Year

Ended

December

31,

2024

Dollars:

Sold

...................................................................................................

$

16,146

$

2,500

Reinvested

..............................................................................................

3,393

768

Redeemed

...............................................................................................

(29,788)

(5,016)

Net

Increase

(Decrease)

$

(10,249)

$

(1,748)

Shares:

Sold

...................................................................................................

1,381

Reinvested

..............................................................................................

Redeemed

...............................................................................................

(2,565)

(442)

Net

Increase

(Decrease)

(895)

(156)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(6,330)

$

(1,693)

Total

Dividends

and

Distributions

$

(6,330)

$

(1,693)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(3,393)

$

(768)

Total

Dividends

and

Distributions

$

(3,393)

$

(768)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

SAM

Conservative

Growth

Portfolio

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

7,927

$

6,631

Net

realized

gain

(loss)

on

investments

..............................................................................................

52,412

36,247

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

...............................................................

(1,292)

14,369

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

59,047

57,247

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(35,479)

(5,689)

Total

Dividends

and

Distributions

(35,479)

(5,689)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(4,819)

(29,611)

Total

Increase

(Decrease)

in

Net

Assets

18,749

21,947

Net

Assets

Beginning

of

period

..................................................................................................................

408,407

386,460

End

of

period

........................................................................................................................

$

427,156

$

408,407

Class

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

...................................................................................................

$

15,697

$

4,611

Reinvested

..............................................................................................

18,269

17,210

Redeemed

...............................................................................................

(40,325)

(20,281)

Net

Increase

(Decrease)

$

(6,359)

$

1,540

Shares:

Sold

...................................................................................................

676

Reinvested

..............................................................................................

794

766

Redeemed

...............................................................................................

(1,755)

(895)

Net

Increase

(Decrease)

(285)

Year

Ended

December

31,

2024

Dollars:

Sold

...................................................................................................

$

17,304

$

5,556

Reinvested

..............................................................................................

3,215

2,474

Redeemed

...............................................................................................

(40,062)

(18,098)

Net

Increase

(Decrease)

$

(19,543)

$

(10,068)

Shares:

Sold

...................................................................................................

805

Reinvested

..............................................................................................

Redeemed

...............................................................................................

(1,845)

(866)

Net

Increase

(Decrease)

(893)

(485)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(18,269)

$

(17,210)

Total

Dividends

and

Distributions

$

(18,269)

$

(17,210)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(3,215)

$

(2,474)

Total

Dividends

and

Distributions

$

(3,215)

$

(2,474)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

SAM

Flexible

Income

Portfolio

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

3,653

$

4,089

Net

realized

gain

(loss)

on

investments

,

foreign

currencies

and

futures

.............................................................

2,941

2,941

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

futures

...................................................

4,534

1,632

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

11,128

8,662

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(4,088)

(3,952)

Total

Dividends

and

Distributions

(4,088)

(3,952)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(18,428)

(13,503)

Total

Increase

(Decrease)

in

Net

Assets

(11,388)

(8,793)

Net

Assets

Beginning

of

period

..................................................................................................................

127,238

136,031

End

of

period

........................................................................................................................

$

115,850

$

127,238

Class

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

...................................................................................................

$

5,039

$

2,266

Reinvested

..............................................................................................

3,045

1,043

Redeemed

...............................................................................................

(22,420)

(7,401)

Net

Increase

(Decrease)

$

(14,336)

$

(4,092)

Shares:

Sold

...................................................................................................

Reinvested

..............................................................................................

Redeemed

...............................................................................................

(1,955)

(660)

Net

Increase

(Decrease)

(1,256)

(368)

Year

Ended

December

31,

2024

Dollars:

Sold

...................................................................................................

$

8,631

$

2,446

Reinvested

..............................................................................................

2,947

1,005

Redeemed

...............................................................................................

(20,263)

(8,269)

Net

Increase

(Decrease)

$

(8,685)

$

(4,818)

Shares:

Sold

...................................................................................................

778

Reinvested

..............................................................................................

Redeemed

...............................................................................................

(1,829)

(754)

Net

Increase

(Decrease)

(789)

(440)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(3,045)

$

(1,043)

Total

Dividends

and

Distributions

$

(3,045)

$

(1,043)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(2,947)

$

(1,005)

Total

Dividends

and

Distributions

$

(2,947)

$

(1,005)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

SAM

Strategic

Growth

Portfolio

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

7,138

$

5,887

Net

realized

gain

(loss)

on

investments

..............................................................................................

53,236

37,745

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

...............................................................

11,282

23,552

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

71,656

67,184

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(40,427)

(4,374)

Total

Dividends

and

Distributions

(40,427)

(4,374)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

9,893

(12,219)

Total

Increase

(Decrease)

in

Net

Assets

41,122

50,591

Net

Assets

Beginning

of

period

..................................................................................................................

450,658

400,067

End

of

period

........................................................................................................................

$

491,780

$

450,658

Class

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

...................................................................................................

$

20,368

$

8,054

Reinvested

..............................................................................................

19,768

20,658

Redeemed

...............................................................................................

(41,659)

(17,296)

Net

Increase

(Decrease)

$

(1,523)

$

11,416

Shares:

Sold

...................................................................................................

744

Reinvested

..............................................................................................

716

765

Redeemed

...............................................................................................

(1,527)

(643)

Net

Increase

(Decrease)

(67)

Year

Ended

December

31,

2024

Dollars:

Sold

...................................................................................................

$

20,237

$

8,759

Reinvested

..............................................................................................

2,421

1,953

Redeemed

...............................................................................................

(32,815)

(12,774)

Net

Increase

(Decrease)

$

(10,157)

$

(2,062)

Shares:

Sold

...................................................................................................

810

Reinvested

..............................................................................................

Redeemed

...............................................................................................

(1,286)

(519)

Net

Increase

(Decrease)

(382)

(85)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(19,769)

$

(20,658)

Total

Dividends

and

Distributions

$

(19,769)

$

(20,658)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(2,421)

$

(1,953)

Total

Dividends

and

Distributions

$

(2,421)

$

(1,953)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

Short-Term

Income

Account

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

5,194

$

5,541

Net

realized

gain

(loss)

on

investments

and

futures

.................................................................................

(170)

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

futures

...................................................

1,651

1,420

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

6,879

6,791

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(5,551)

(4,673)

Total

Dividends

and

Distributions

(5,551)

(4,673)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(2,007)

(4,171)

Total

Increase

(Decrease)

in

Net

Assets

(679)

(2,053)

Net

Assets

Beginning

of

period

..................................................................................................................

133,871

135,924

End

of

period

........................................................................................................................

$

133,192

$

133,871

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

..............................................................................................................

$

42,143

Reinvested

.........................................................................................................

5,551

Redeemed

..........................................................................................................

(49,701)

Net

Increase

(Decrease)

$

(2,007)

Shares:

Sold

..............................................................................................................

16,347

Reinvested

.........................................................................................................

2,185

Redeemed

..........................................................................................................

(19,219)

Net

Increase

(Decrease)

(687)

Year

Ended

December

31,

2024

Dollars:

Sold

..............................................................................................................

$

36,883

Reinvested

.........................................................................................................

4,673

Redeemed

..........................................................................................................

(45,727)

Net

Increase

(Decrease)

$

(4,171)

Shares:

Sold

..............................................................................................................

14,508

Reinvested

.........................................................................................................

1,840

Redeemed

..........................................................................................................

(17,987)

Net

Increase

(Decrease)

(1,639)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(5,551)

Total

Dividends

and

Distributions

$

(5,551)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(4,673)

Total

Dividends

and

Distributions

$

(4,673)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

SmallCap

Account

Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

$

726

Net

realized

gain

(loss)

on

investments

..............................................................................................

13,147

9,322

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

...............................................................

10,370

1,889

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

23,812

11,937

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(9,122)

(4,037)

Total

Dividends

and

Distributions

(9,122)

(4,037)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(9,847)

(12,366)

Total

Increase

(Decrease)

in

Net

Assets

4,843

(4,466)

Net

Assets

Beginning

of

period

..................................................................................................................

171,359

175,825

End

of

period

........................................................................................................................

$

176,202

$

171,359

Class

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

...................................................................................................

$

10,434

$

728

Reinvested

..............................................................................................

8,617

505

Redeemed

...............................................................................................

(28,695)

(1,436)

Net

Increase

(Decrease)

$

(9,644)

$

(203)

Shares:

Sold

...................................................................................................

659

Reinvested

..............................................................................................

516

Redeemed

...............................................................................................

(1,802)

(91)

Net

Increase

(Decrease)

(627)

(11)

Year

Ended

December

31,

2024

Dollars:

Sold

...................................................................................................

$

10,037

$

733

Reinvested

..............................................................................................

3,840

Redeemed

...............................................................................................

(25,857)

(1,316)

Net

Increase

(Decrease)

$

(11,980)

$

(386)

Shares:

Sold

...................................................................................................

646

Reinvested

..............................................................................................

Redeemed

...............................................................................................

(1,655)

(84)

Net

Increase

(Decrease)

(755)

(25)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(8,617)

$

(505)

Total

Dividends

and

Distributions

$

(8,617)

$

(505)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

.......................................................

$

(3,840)

$

(197)

Total

Dividends

and

Distributions

$

(3,840)

$

(197)

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account

(a) Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

$

Net

realized

gain

(loss)

on

investments

and

options

and

swaptions

.................................................................

2,516

7,164

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

options

and

swaptions

..................................

2,216

1,443

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

4,788

8,776

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(741)

(4,354)

Total

Dividends

and

Distributions

(741)

(4,354)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(8,164)

10,792

Total

Increase

(Decrease)

in

Net

Assets

(4,117)

15,214

Net

Assets

Beginning

of

period

..................................................................................................................

37,944

22,730

End

of

period

........................................................................................................................

$

33,827

$

37,944

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

..............................................................................................................

$

9,029

Reinvested

.........................................................................................................

741

Redeemed

..........................................................................................................

(17,934)

Net

Increase

(Decrease)

$

(8,164)

Shares:

Sold

..............................................................................................................

885

Reinvested

.........................................................................................................

Redeemed

..........................................................................................................

(1,637)

Net

Increase

(Decrease)

(685)

Year

Ended

December

31,

2024

Dollars:

Sold

..............................................................................................................

$

91,365

Reinvested

.........................................................................................................

4,354

Redeemed

..........................................................................................................

(84,927)

Net

Increase

(Decrease)

$

10,792

Shares:

Sold

..............................................................................................................

8,593

Reinvested

.........................................................................................................

Redeemed

..........................................................................................................

(7,669)

Net

Increase

(Decrease)

1,336

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(741)

Total

Dividends

and

Distributions

$

(741)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(4,354)

Total

Dividends

and

Distributions

$

(4,354)

(a) Effective

May

1,

2025,

U.S.

LargeCap

Buffer

April

Account

changed

its

name

to

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account.

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

U.S.

LargeCap

S&P

500

Index

Buffer

January

Account

(a) Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

$

Net

realized

gain

(loss)

on

investments

and

options

and

swaptions

.................................................................

4,843

6,565

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

options

and

swaptions

..................................

711

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

5,360

7,391

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(6,592)

(35)

Total

Dividends

and

Distributions

(6,592)

(35)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

(5,743)

2,580

Total

Increase

(Decrease)

in

Net

Assets

(6,975)

9,936

Net

Assets

Beginning

of

period

..................................................................................................................

68,269

58,333

End

of

period

........................................................................................................................

$

61,294

$

68,269

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

..............................................................................................................

$

49,119

Reinvested

.........................................................................................................

6,592

Redeemed

..........................................................................................................

(61,454)

Net

Increase

(Decrease)

$

(5,743)

Shares:

Sold

..............................................................................................................

4,576

Reinvested

.........................................................................................................

650

Redeemed

..........................................................................................................

(5,118)

Net

Increase

(Decrease)

Year

Ended

December

31,

2024

Dollars:

Sold

..............................................................................................................

$

77,931

Reinvested

.........................................................................................................

Redeemed

..........................................................................................................

(75,386)

Net

Increase

(Decrease)

$

2,580

Shares:

Sold

..............................................................................................................

6,921

Reinvested

.........................................................................................................

Redeemed

..........................................................................................................

(6,972)

Net

Increase

(Decrease)

(48)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(6,592)

Total

Dividends

and

Distributions

$

(6,592)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(35)

Total

Dividends

and

Distributions

$

(35)

(a) Effective

May

1,

2025,

U.S.

LargeCap

Buffer

January

Account

changed

its

name

to

U.S.

LargeCap

S&P

500

Index

Buffer

January

Account.

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

U.S.

LargeCap

S&P

500

Index

Buffer

July

Account

(a) Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

$

Net

realized

gain

(loss)

on

investments

and

options

and

swaptions

.................................................................

8,219

10,189

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

options

and

swaptions

..................................

718

(1,874)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

9,022

8,467

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(9,167)

(864)

Total

Dividends

and

Distributions

(9,167)

(864)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

6,433

(22,939)

Total

Increase

(Decrease)

in

Net

Assets

6,288

(15,336)

Net

Assets

Beginning

of

period

..................................................................................................................

38,893

54,229

End

of

period

........................................................................................................................

$

45,181

$

38,893

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

..............................................................................................................

$

74,098

Reinvested

.........................................................................................................

9,167

Redeemed

..........................................................................................................

(76,832)

Net

Increase

(Decrease)

$

6,433

Shares:

Sold

..............................................................................................................

5,183

Reinvested

.........................................................................................................

667

Redeemed

..........................................................................................................

(5,518)

Net

Increase

(Decrease)

Year

Ended

December

31,

2024

Dollars:

Sold

..............................................................................................................

$

76,571

Reinvested

.........................................................................................................

864

Redeemed

..........................................................................................................

(100,374)

Net

Increase

(Decrease)

$

(22,939)

Shares:

Sold

..............................................................................................................

5,878

Reinvested

.........................................................................................................

Redeemed

..........................................................................................................

(7,739)

Net

Increase

(Decrease)

(1,795)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(9,167)

Total

Dividends

and

Distributions

$

(9,167)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(864)

Total

Dividends

and

Distributions

$

(864)

(a) Effective

May

1,

2025,

U.S.

LargeCap

Buffer

July

Account

changed

its

name

to

U.S.

LargeCap

S&P

500

Index

Buffer

July

Account.

Statement

of

Changes

in

Net

Assets

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Amounts

in

thousands

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account

(a) Year

Ended

December

31,

2025

Year

Ended

December

31,

2024

Operations

Net

investment

income

(loss)

........................................................................................................

$

$

Net

realized

gain

(loss)

on

investments

and

options

and

swaptions

.................................................................

4,313

3,899

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

options

and

swaptions

..................................

2,776

1,075

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

7,217

5,098

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

.................................................................

(4,673)

(76)

Total

Dividends

and

Distributions

(4,673)

(76)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

................................................................................

24,707

36,019

Total

Increase

(Decrease)

in

Net

Assets

27,251

41,041

Net

Assets

Beginning

of

period

..................................................................................................................

59,841

18,800

End

of

period

........................................................................................................................

$

87,092

$

59,841

Class

Capital

Share

Transactions:

Year

Ended

December

31,

2025

Dollars:

Sold

..............................................................................................................

$

87,158

Reinvested

.........................................................................................................

4,673

Redeemed

..........................................................................................................

(67,124)

Net

Increase

(Decrease)

$

24,707

Shares:

Sold

..............................................................................................................

6,381

Reinvested

.........................................................................................................

Redeemed

..........................................................................................................

(4,772)

Net

Increase

(Decrease)

1,956

Year

Ended

December

31,

2024

Dollars:

Sold

..............................................................................................................

$

81,299

Reinvested

.........................................................................................................

Redeemed

..........................................................................................................

(45,356)

Net

Increase

(Decrease)

$

36,019

Shares:

Sold

..............................................................................................................

5,978

Reinvested

.........................................................................................................

Redeemed

..........................................................................................................

(3,284)

Net

Increase

(Decrease)

2,700

Dividends

and

Distributions

to

Shareholders:

Year

Ended

December

31,

2025

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(4,673)

Total

Dividends

and

Distributions

$

(4,673)

Year

Ended

December

31,

2024

From

net

investment

income

and

net

realized

gain

on

investments

..................................................................

$

(76)

Total

Dividends

and

Distributions

$

(76)

(a) Effective

May

1,

2025,

U.S.

LargeCap

Buffer

October

Account

changed

its

name

to

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account.

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

1. Organization

Principal

Variable

Contracts

Funds,

Inc.

(the

"Fund")

is

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act")

as

an

open-end

management

investment

company

and

operates

as

a

series

fund

in

the

mutual

fund

industry.

The

financial

statements

for

Blue

Chip

Account,

Bond

Market

Index

Account,

Core

Plus

Bond

Account,

Diversified

Balanced

Account,

Diversified

Balanced

Adaptive

Allocation

Account,

Diversified

Balanced

Strategic

Allocation

Account,

Diversified

Growth

Account,

Diversified

Growth

Adaptive

Allocation

Account,

Diversified

Growth

Strategic

Allocation

Account,

Diversified

Income

Account,

Diversified

International

Account,

Equity

Income

Account,

Global

Emerging

Markets

Account,

Government

&

High

Quality

Bond

Account,

LargeCap

Growth

Account

I,

LargeCap

S&P

500

Index

Account,

LargeCap

S&P

500

Managed

Volatility

Index

Account,

MidCap

Account,

Principal

Capital

Appreciation

Account,

Principal

LifeTime

2020

Account,

Principal

LifeTime

2030

Account,

Principal

LifeTime

2040

Account,

Principal

LifeTime

2050

Account,

Principal

LifeTime

2060

Account,

Principal

LifeTime

Strategic

Income

Account,

Real

Estate

Securities

Account,

SAM

Balanced

Portfolio,

SAM

Conservative

Balanced

Portfolio,

SAM

Conservative

Growth

Portfolio,

SAM

Flexible

Income

Portfolio,

SAM

Strategic

Growth

Portfolio,

Short-Term

Income

Account,

SmallCap

Account,

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account,

U.S.

LargeCap

S&P

500

Index

Buffer

January

Account,

U.S.

LargeCap

S&P

500

Index

Buffer

July

Account,

and

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account,

each

a

series

of

the

Fund

(known

as

the

"Funds"),

are

presented

herein.

Principal

LifeTime

2020

Account,

Principal

LifeTime

2030

Account,

Principal

LifeTime

2040

Account,

Principal

LifeTime

2050

Account,

Principal

LifeTime

2060

Account,

and

Principal

LifeTime

Strategic

Income

Account

are

referred

to

collectively

as

the

"Principal

LifeTime

Funds".

SAM

Balanced

Portfolio,

SAM

Conservative

Balanced

Portfolio,

SAM

Conservative

Growth

Portfolio,

SAM

Flexible

Income

Portfolio,

and

SAM

Strategic

Growth

Portfolio

are

referred

to

collectively

as

the

"SAM

Portfolios".

The

Funds

may

offer

up

to

two

classes

of

shares:

Class

and

Class

2. Each

of

the

Funds

is

an

investment

company

and

applies

specialized

accounting

and

reporting

under

Accounting

Standards

Codification

("ASC")

Topic

946,

Financial

Services

-

Investment

Companies

.

The

Funds

have

not

provided

financial

support

and

are

not

contractually

required

to

provide

financial

support

to

any

investee.

Effective

May

1,

2024,

the

following

funds

changed

their

names:

Effective

April

30,

2025,

Principal

Global

Investors,

LLC

(the

"Manager")

made

a

$10,000

purchase

of

Class

shares

of

the

Blue

Chip

Account.

Effective

May

1,

2025,

all

Class

shares

converted

into

Class

shares,

as

applicable.

Additionally,

the

following

Funds

changed

their

names:

On

December

9,

2025,

the

Fund's

Board

of

Directors

approved

the

acquisitions

of

the

assets

of

Diversified

Balanced

Strategic

Allocation

Account

by

the

Diversified

Balanced

Adaptive

Allocation

Account

and

Diversified

Growth

Strategic

Allocation

Account

by

the

Diversified

Growth

Adaptive

Allocation

Account.

The

proposed

mergers

are

expected

to

occur

on

or

about

May

1,

2026;

The

Fund's

Board

of

Directors

also

approved

a

Plan

of

Liquidation

and

Termination

of

LargeCap

S&P

500

Managed

Volatility

Index

Account

(the

"Plan").

Pursuant

to

the

Plan,

LargeCap

S&P

500

Managed

Volatility

Index

Account

will

liquidate

on

or

about

March

25,

2026. All

classes

of

shares

for

each

of

the

Funds

represent

interests

in

the

same

portfolio

of

investments

and

will

vote

together

as

a

single

class,

except

where

otherwise

required

by

law

or

as

determined

by

the

Fund's

Board

of

Directors.

In

addition,

the

Fund's

Board

of

Directors

declares

separate

dividends

on

each

class

of

shares.

2. Significant

Accounting

Policies

The

preparation

of

financial

statements

in

conformity

with

U.S.

generally

accepted

accounting

principles

("U.S.

GAAP")

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

and

disclosure

of

contingent

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

reported

amounts

of

revenues

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

The

following

summarizes

the

significant

accounting

policies

of

the

Funds:

Old

Name

New

Name

Diversified

Balanced

Managed

Volatility

Account

Diversified

Balanced

Strategic

Allocation

Account

Diversified

Balanced

Volatility

Control

Account

Diversifi

ed

Balanced

Adaptive

Allocation

Account

Diversified

Growth

Managed

Volatility

Account

Diversified

Growth

Strategic

Allocation

Account

Diversified

Growth

Volatility

Control

Account

Diversified

Growth

Adaptive

Allocation

Account

Old

Name

New

Name

U.S.

LargeCap

Buffer

April

Account

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account

U.S.

LargeCap

Buffer

January

Account

U.S.

LargeCap

S&P

500

Index

Buffer

January

Account

U.S.

LargeCap

Buffer

July

Account

U.S.

LargeCap

S&P

500

Index

Buffer

July

Account

U.S.

LargeCap

Buffer

October

Account

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

Security

Valuation.

The

Funds

may

invest

in

other

series

of

the

Fund,

Principal

Funds,

Inc.,

and

other

investment

funds,

which

may

include

exchange-traded

funds,

money

market

funds

and

other

registered

open-end

investment

companies.

Investments

in

registered

open-end

investment

companies,

other

than

exchange-traded

funds,

are

valued

at

the

respective

fund's

closing

net

asset

value

per

share

on

the

day

of

valuation.

The

Funds

value

securities,

including

exchange-traded

funds,

for

which

market

quotations

are

readily

available

at

fair

value,

which

is

determined

using

the

last

reported

sale

price.

If

no

sales

are

reported,

as

is

regularly

the

case

for

some

securities

traded

over-the-counter,

securities

are

valued

using

the

last

reported

bid

price

or

an

evaluated

bid

price

provided

by

a

pricing

service.

Pricing

services

use

modeling

techniques

that

incorporate

security

characteristics

such

as

current

quotations

by

broker/dealers,

coupon,

maturity,

quality,

type

of

issue,

trading

characteristics,

other

yield

and

risk

factors,

and

other

market

conditions

to

determine

an

evaluated

bid

price.

When

reliable

market

quotations

are

not

considered

to

be

readily

available,

which

may

be

the

case,

for

example,

with

respect

to

restricted

securities,

certain

debt

securities,

preferred

stocks,

and

foreign

securities,

the

investments

are

valued

at

their

fair

value

as

determined

in

good

faith

by

the

Manager

under

procedures

established

and

periodically

reviewed

by

the

Fund's

Board

of

Directors.

The

value

of

foreign

securities

used

in

computing

the

net

asset

value

per

share

is

generally

determined

as

of

the

close

of

the

foreign

exchange

where

the

security

is

principally

traded.

Events

that

occur

after

the

close

of

the

applicable

foreign

market

or

exchange

but

prior

to

the

calculation

of

the

Funds'

net

asset

values

are

reflected

in

the

Funds'

net

asset

values

and

these

securities

are

valued

at

fair

value.

Many

factors,

provided

by

independent

pricing

services,

are

reviewed

in

the

course

of

making

a

good

faith

determination

of

a

security's

fair

value,

including,

but

not

limited

to,

price

movements

in

American

depository

receipts

("ADRs"),

futures

contracts,

industry

indices,

general

indices,

and

foreign

currencies.

To

the

extent

the

Funds

invest

in

foreign

securities

listed

on

foreign

exchanges

which

trade

on

days

on

which

the

Funds

do

not

determine

net

asset

values,

for

example,

weekends

and

other

customary

national

U.S.

holidays,

the

Funds'

net

asset

values

could

be

significantly

affected

on

days

when

shareholders

cannot

purchase

or

redeem

shares.

Certain

securities

issued

by

companies

in

emerging

market

countries

may

have

more

than

one

quoted

valuation

at

any

given

point

in

time,

sometimes

referred

to

as

a

"local"

price

and

a

"premium"

price.

The

premium

price

is

often

a

negotiated

price,

which

may

not

consistently

represent

a

price

at

which

a

specific

transaction

can

be

effected.

It

is

the

policy

of

the

Fund

to

value

such

securities

at

prices

at

which

it

is

expected

those

shares

may

be

sold,

and

the

Manager

or

any

sub-advisor,

is

authorized

to

make

such

determinations

subject

to

such

oversight

by

the

Fund's

Board

of

Directors,

as

may

occasionally

be

necessary.

Currency

Translation.

Foreign

holdings

are

translated

to

U.S.

dollars

using

the

exchange

rate

at

the

daily

close

of

the

New

York

Stock

Exchange.

The

identified

cost

of

the

Funds'

holdings

is

translated

at

approximate

rates

prevailing

when

acquired.

Income

and

expense

amounts

are

translated

at

approximate

rates

prevailing

when

received

or

paid,

with

daily

accruals

of

such

amounts

reported

at

approximate

rates

prevailing

at

the

date

of

valuation.

Since

the

carrying

amount

of

the

foreign

securities

is

determined

based

on

the

exchange

rate

and

market

values

at

the

close

of

the

period,

it

is

not

practicable

to

isolate

that

portion

of

the

results

of

operations

arising

as

a

result

of

changes

in

the

foreign

exchange

rates

from

the

fluctuations

arising

from

changes

in

the

market

prices

of

securities

during

the

period.

Net

realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

trade

and

settlement

dates

on

security

transactions,

and

the

difference

between

the

amount

of

dividends,

interest

income,

interest

expense,

and

foreign

withholding

taxes

recorded

on

the

books

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

appreciation

(depreciation)

on

translation

of

assets

and

liabilities

in

foreign

currencies

arise

from

changes

in

the

exchange

rate

relating

to

assets

and

liabilities,

other

than

investments

in

securities,

purchased

and

held

in

non-U.S.

denominated

currencies.

The

following

Funds

held

securities

denominated

in

foreign

currencies

that

exceeded

5%

of

net

assets

of

the

respective

fund

as

of

December

31,

2025:

Diversified

International

Account

Euro

29.2%

British

Pound

Sterling

16.3 Japanese

Yen

13.0 Hong

Kong

Dollar

9.6 Canadian

Dollar

7.7 Global

Emerging

Markets

Account

Hong

Kong

Dollar

23.2%

New

Taiwan

Dollar

18.2 Indian

Rupee

15.7 South

Korean

Won

10.3 Brazilian

Real

6.0 2. Significant

Accounting

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

Income

and

Investment

Transactions.

The Funds

record

investment

transactions

on

a

trade

date

basis.

Trade

date

for

senior

floating

rate

interests

purchased

in

the

primary

market

is

considered

the

date

on

which

the

loan

allocations

are

determined.

Trade

date

for

senior

floating

rate

interests

purchased

in

the

secondary

market

is

the

date

on

which

the

transaction

is

entered

into.

The

identified

cost

basis

has

been

used

in

determining

the

net

realized

gain

or

loss

from

investment

transactions

and

unrealized

appreciation

or

depreciation

of

investments.

The

Funds

record

dividend

income

on

the

ex-dividend

date,

except

dividend

income

from

foreign

securities

whereby

the

ex-dividend

date

has

passed;

such

dividends

are

recorded

as

soon

as

the Funds

are

informed

of

the

ex-dividend

date.

Interest

income

is

recognized

on

an

accrual

basis.

Payment

in

kind

("PIK")

income

is

computed

on

the

value

of the

securities

received

at

the

contractual

rate

specified

in

each

loan

agreement. Discounts

and

premiums

on

securities

are

accreted/amortized,

respectively,

on

the

level

yield

method

over

the

expected

lives

of

the

respective

securities.

Callable

debt

securities

purchased

at

a

premium

are

amortized

to

the

earliest

call

date

and

to

the

callable

amount,

if

other

than

par.

The Funds

allocate

all

income

and

realized

and

unrealized

gains

or

losses

on

a

daily

basis

to

each

class

of

shares

based

upon

the

relative

proportion

of

the

value

of

shares

outstanding.

Distributions

received

from

other

series

of

the

Fund

and

other

investment

companies

(collectively,

"Underlying

Funds")

are

recorded

in

accordance

with

the

character

of

the distributions

as

designated

by

the

Underlying

Funds.

Distributions

received

from

Real

Estate

Investment

Trusts

("REITs")

may

be

characterized

as

ordinary

income,

capital

gain,

or

a

return

of

capital

to

the

Funds.

The

proper

characterization

of

distributions

from REITs

is

generally

not

known

until

after

the

end

of

each

calendar

year.

As

such,

estimates

are

used

in

reporting

the

character

of

income

and

distributions

for

financial

statement

purposes.

Real

Estate

Securities

Account

receives

substantial

distributions

from

holdings

in

REITs.

Expenses.

Expenses

directly

attributed

to

a

particular fund

are

charged

to

that

fund.

Other

expenses

not

directly

attributed

to

a

particular fund

are

apportioned

among

the

registered

investment

companies

managed

by

the

Manager.

Management

fees

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

the

value

of

shares

outstanding

of

each

class.

Expenses

specifically

attributable

to

a

particular

class

are

charged

directly

to

such

class

and

are

included

separately

in

the

statements

of

operations.

In

addition

to

the

expenses

the Funds

bear

directly,

each

of

the Funds

may

indirectly

bear

a

pro

rata

share

of

the

fees

and

expenses

of

the Underlying

Funds in

which

they

invest.

Because

the

Underlying

Funds

have

varied

expense

levels

and

each

of

the Funds

may

own

different

proportions

of

the Underlying

Funds

at

different

times,

the

amount

of

expense

incurred

indirectly

by

each

of

the Funds

will

vary.

Expenses

included

in

the

statements

of

operations

and

financial

highlights

of

the Funds do

not

include

any

expenses

associated

with

the

Underlying

Funds.

Dividends

and

Distributions

to

Shareholders.

Dividends

and

distributions

to

shareholders

are

recorded

on

the

ex-dividend

date.

Dividends

and

distributions

to

shareholders

from

net

investment

income

and

net

realized

gain

from

investments

and

foreign

currency

transactions

are

determined

in

accordance

with

federal

tax

regulations,

which

may

differ

from

U.S.

GAAP.

These

differences

are

primarily

due

to

differing

treatments

for

amortization

of

premiums

and

discounts,

net

operating

losses,

foreign

currency

transactions,

options

and

futures

contracts,

certain

defaulted

securities,

sales

of

passive

foreign

investment

companies,

losses

deferred

due

to

wash

sales,

tax

straddles,

mortgage-backed

securities,

certain

preferred

securities,

swap

agreements,

partnership

investments,

REITs,

utilization

of

earnings

and

profits

distributed

to

shareholders

on

redemption

of

shares,

and

limitations

imposed

by

Sections

–

of

the

Internal

Revenue

Code.

Permanent

book

and

tax

basis

differences

are

reclassified

within

the

capital

accounts

based

on

federal

tax-basis

treatment;

temporary

differences

do

not

require

reclassification.

To

the

extent

dividends

and

distributions

exceed

current

and

accumulated

earnings

and

profits

for

federal

income

tax

purposes,

they

are

reported

as

return

of

capital

distributions.

Federal

Income

Taxes.

No

provision

for

federal

income

taxes

is

considered

necessary

because

each

of

the

Funds

intends

to

qualify

as

a

"regulated

investment

company"

under

the

Internal

Revenue

Code

and

intends

to

distribute

each

year

substantially

all

of

its

net

investment

income

and

realized

capital

gains

to

shareholders.

Management

evaluates

tax

positions

taken

or

expected

to

be

taken

in

the

course

of

preparing

the

Funds'

tax

returns

to

determine

whether

it

is

"more

likely

than

not"

that

each

tax

position

would

be

sustained

upon

examination

by

a

taxing

authority

based

on

the

technical

merits

of

the

position.

Tax

positions

not

deemed

to

meet

the

"more

likely

than

not"

threshold

would

be

recorded

as

a

tax

benefit

or

expense

in

the

current

year.

The

Funds

recognize

interest

and

penalties,

if

any,

related

to

unrecognized

tax

positions

as

tax

expense

on

the

statements

of

operations. During

the year

ended

December

31,

2025,

the

Funds

did

not

record

any

such

tax

benefit

or

expense

in

the

accompanying

financial

statements.

The

statute

of

limitations

remains

open

for

the

last

three

years,

once

a

return

is

filed.

No

examinations

are

in

progress

at

this

time.

During

the

year

ended

December

31,

2025,

there

were

no

Funds

with

material

income

taxes

paid,

net

of

refunds.

2. Significant

Accounting

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

Foreign

Taxes.

The

Funds

may

be

subject

to

foreign

income

taxes

imposed

by

certain

countries

in

which

they

invest.

Foreign

income

taxes

are

accrued

by

the

Funds

as

a

reduction

of

income.

These

amounts

are

shown

as

withholding

tax

on

the

statements

of

operations.

In

consideration

of

decisions

rendered

by

European

courts,

certain

of

the

Funds

have

filed

for

additional

tax

reclaims

for

taxes

withheld

in

prior

years.

Due

to

the

uncertainty

regarding

collectability

and

timing

of

these

reclaims,

among

other

factors,

a

corresponding

receivable

will

only

be

recognized

when

the

tax

position

meets

the

"more

likely

than

not"

threshold.

Any

accrued

foreign tax

reclaims

receivables

are

included

in

dividends

and

interest

receivables

on

the

statements

of

assets

and

liabilities.

Any

foreign

tax

reclaims income is

included

in

dividend

income

on

the

statements

of

operations.

Gains

realized

upon

the

disposition

of

certain

foreign

securities

held

by

certain

Funds

may

be

subject

to

capital

gains

tax,

payable

prior

to

the

repatriation

of

sale

proceeds.

The

tax

is

computed

on

certain

net

realized

gains

and,

if

any,

is

shown

on

the

statements

of

operations.

Realized

losses

in

excess

of

gains

may

be

carried

forward

to

offset

future

gains.

In

addition,

the

Funds

accrue

an

estimated

tax

liability

for

future

gains

on

certain

foreign

securities.

Any

foreign

tax

refund

receivables and

any

accrued

foreign

tax

liabilities

are

shown

on

the

statements

of

assets

and

liabilities.

Recent

Accounting

Pronouncements.

In

March

2020,

the

Financial

Accounting

Standards

Board

("FASB")

issued

Accounting

Standards

Update

("ASU")

No.

2020-04

Reference

Rate

Reform

(Topic

848);

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting

,

which

provides

optional

guidance

for

a

limited

period

of

time

to

ease

the

potential

burden

in

accounting

for

(or

recognizing

the

effects

of)

reference

rate

reform.

The

guidance

is

applicable

to

contracts

referencing

London

Interbank

Offered

Rate

("LIBOR")

or

another

reference

rate

that

is

expected

to

be

discontinued

due

to

reference

rate

reform.

The

ASU

is

effective

as

of

March

12,

2020

and

generally

can

be

applied

through

December

31,

2022. In

December

2022,

the

FASB

issued

ASU

No.

2022-06

Reference

Rate

Reform

(Topic

848):

Deferral

of

the

Sunset

Date

of

Topic

848

which

updates

and

clarifies

ASU

No.

2020-04.

The

amendments

in

this

ASU

defer

the

sunset

date

of

Topic

848

from

December

31,

2022,

to

December

31,

2024. The

impact

of

these

ASUs

did

not

have

a

material

impact

on

the

Funds'

financial

statements

In

December

2023,

the

FASB

issued

ASU

No.

2023-09

Income

Taxes

(Topic

740);

Improvements

to

Income

Tax

Disclosures,

which

enhances

the

transparency

and

decision

usefulness

of

income

tax

disclosures,

including

disclosure

of

income

taxes

paid

by

jurisdiction.

The

ASU

is

effective

for

annual

periods

beginning

after

December

15,

2024

.

As

of

January

1,

2025,

the

Funds

have

adopted

the

ASU

and

added

required

disclosures,

as

applicable.

3. Operating

Policies

Borrowings.

Pursuant

to

an

exemptive

order

issued

by

the

Securities

and

Exchange

Commission

(the

"SEC"),

the

Funds

and

other

registered

investment

companies

managed

by

the

Manager

may

participate

in

an

interfund

lending

facility

("Facility").

The

Facility

allows

the Funds

to

borrow

money

from

or

loan

money

to

the

other

participants.

Loans

under

the

Facility

are

made

to

handle

unusual

and/or

unanticipated

short-

term

cash

requirements.

Interest

paid

and

received

on

borrowings

is

the

average

of

the

current

repurchase

agreement

rate

and

the

bank

loan

rate

plus

the

applicable

margin

of

1.00%.

The

bank

loan

rate

equals

the

higher

of

(i) the

Federal

Funds

Rate

or

(ii) the

Secured

Overnight

Financing

Rate

("SOFR") plus

.10%

("Adjusted

SOFR").

If

the

Federal

Funds

Rate

or

the

Adjusted

SOFR

is

less

than

zero,

it

shall

be

deemed

to

be

zero

for

purposes

of

calculating

such

rate.

The

interest

income

received

is

included

in

interest

income

on

the

statements

of

operations. The

interest

expense

associated

with

these

borrowings

is

included

in

other

expenses

on

the

statements

of

operations. There

was

no

outstanding

lending

as

of December

31,

2025. Any

outstanding

borrowing as

of December

31,

2025 is

included

in

interfund

borrowing

on

the

statements

of

assets

and

liabilities.

During

the year

ended

December

31,

2025,

Funds

lending

to

the

Facility

were

as

follows

(amounts

in

thousands):

Average

Daily

Amount

Loaned

Weighted

Average

Annual

Interest

Rate

Interest

Income

Blue

Chip

Account

$

4.96 %

$

—

Bond

Market

Index

Account

4.87 11

Core

Plus

Bond

Account

4.87 3

Diversified

Balanced

Adaptive

Allocation

Account

4.92 —

Diversified

Growth

Adaptive

Allocation

Account

4.93 2

Diversified

International

Account

4.76 1

Equity

Income

Account

4.73 4

Global

Emerging

Markets

Account

4.71 1

Government

&

High

Quality

Bond

Account

4.90 —

LargeCap

Growth

Account

I

4.75 10

LargeCap

S&P

500

Index

Account

4.93 12

LargeCap

S&P

500

Managed

Volatility

Index

Account

4.90 3

2. Significant

Accounting

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

During

the year

ended

December

31,

2025,

Funds

borrowing

from

the

Facility

were

as

follows

(amounts

in

thousands):

In

addition,

the

Funds

participate

with

other

registered

investment

companies

managed

by

the

Manager

in

an

unsecured

joint

line

of

credit

with

a

group

of

financial

institutions

which

allows

the

participants

to

borrow

up

to

$300

million,

collectively.

Borrowings

are

made

solely

to

facilitate

the

handling

of

unusual

and/or

unanticipated

short-term

cash

requirements. The

line

of

credit

is

available

under

a

group

of

revolving

financial

institutions

and

lending

is

carried

out

with

unaffiliated

financial

institutions.

Interest

is

charged

to

each

participant,

based

on

its

borrowings,

at

a

rate

equal

to

the

higher

of

the

Federal

Funds

Rate

or

the

Adjusted

SOFR

plus

the

applicable

margin

of

1.00%.

If

the

Federal

Funds

Rate

or

the

Adjusted

SOFR

is

less

than

zero,

it

shall

be

deemed

to

be

zero

for

purposes

of

calculating

such

rate.

Additionally,

a

commitment

fee

is

charged

at

an

annual

rate

of

.15%

on

the

amount

of

the

line

of

credit

which

is

allocated

to

each

participant

based

on

average

net

assets.

The

interest

expense

associated

with

these

borrowings

is

included

in

other

expenses

on

the

statements

of

operations.

There

was

no

outstanding

borrowing

as

of

December

31,

2025. During

the year ended

December

31,

2025,

Funds

borrowing

against

the

line

of

credit

were

as

follows

(amounts

in

thousands):

Contingent

Convertible

Securities.

As

footnoted

in

the

schedules

of

investments, certain

of

the

Funds

invest

in

contingent

convertible securities

("CoCos").

CoCos are

hybrid

debt

securities

that

may

convert

into

equity

or

have

their

principal

written

down

upon

the

occurrence

of

certain

"triggers."

Although

a

contingent

convertible

security's

equity

conversion

and

principal

write-down

features

are

tailored

to

the

particular

issuing

banking

institution

and

its

regulatory

requirements,

triggers

are

generally

linked

to

regulatory

capital

thresholds

or

regulatory

actions

calling

into

question

such

institution's

continued

viability

as

a

going-concern.

CoCos

may

have

no

stated

maturity

and

fully

discretionary

coupons,

which

means

coupon

payments

can

be

canceled

at

the

issuing

banking

institution's

discretion

or

at

the

request

of

the

relevant

regulatory

authority

without

causing

a

default.

To

provide

the

appropriate

regulatory

capital

treatment,

CoCos

are

usually

issued

in

the

form

of

subordinated

debt

instruments

that

rank

junior

to

the

claims

of

holders

of

more

senior

obligations

in

the

event

of

the

issuer's

liquidation.

If

CoCos

are

converted

into

equity

securities

due

to

a

trigger

event,

holders

will

be

further

subordinated.

The

future

value

of

CoCos

is

unpredictable

and

is

influenced

by

many

factors

including,

without

limitation:

the

creditworthiness

of

the

issuer

and/or

fluctuations

in

such

issuer's

applicable

capital

ratios;

supply

and

demand

for

CoCos;

general

market

conditions

and

available

liquidity;

and

economic,

financial

and

political

events

that

affect

the

issuer,

its

particular

market

or

the

financial

markets

in

general.

Due

to

these

features,

CoCos

may

have

substantially

greater

risk

than

other

securities

in

times

of

financial

stress.

Because

of

the

uncertainty

regarding

whether

a

conversion

event

will

occur,

it

may

be

difficult

to

predict

when,

if

at

all,

Average

Daily

Amount

Loaned

Weighted

Average

Annual

Interest

Rate

Interest

Income

MidCap

Account

$

4.69 %

$

—

Principal

Capital

Appreciation

Account

4.75 2

Real

Estate

Securities

Account

4.84 1

Short-Term

Income

Account

4.80 1

SmallCap

Account

4.83 2

Average

Daily

Amount

Borrowed

Weighted

Average

Annual

Interest

Rate

Interest

Expense

Blue

Chip

Account

$

4.86 %

$

—

Diversified

Balanced

Adaptive

Allocation

Account

4.82 1

Diversified

Growth

Adaptive

Allocation

Account

4.80 7

Diversified

International

Account

4.75 11

Global

Emerging

Markets

Account

4.32 —

MidCap

Account

4.71 1

SmallCap

Account

4.82 —

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account

4.85 1

U.S.

LargeCap

S&P

500

Index

Buffer

January

Account

4.93 4

U.S.

LargeCap

S&P

500

Index

Buffer

July

Account

4.88 4

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account

4.91 4

Average

Daily

Amount

Borrowed

Weighted

Average

Annual

Interest

Rate

Bond

Market

Index

Account

$

5.46 %

Core

Plus

Bond

Account

5.46 Diversified

Growth

Adaptive

Allocation

Account

5.46 LargeCap

Growth

Account

I

—

5.47 LargeCap

S&P

500

Index

Account

5.46 U.S.

LargeCap

S&P

500

Index

Buffer

January

Account

5.46 U.S.

LargeCap

S&P

500

Index

Buffer

July

Account

5.46 3. Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

a

contingent

convertible

security

will

be

converted

to

equity,

and

a

fund

may

suffer

losses

as

a

result.

If

the

trigger

level

is

breached,

the

issuer's

decision

to

write

down,

write

off

or

convert

a

contingent

convertible

security

may

result

in

the

fund's

complete

loss

on

an

investment

in

CoCos

with

no

chance

of

recovery

even

if

the

issuer

remains

in

existence.

Counterparties.

The

Funds

may

be

exposed

to

counterparty

risk,

or

the

risk

that

another

party

with

which

the

Funds

have

unsettled

or

open

transactions

will

fail

to

perform

on

their

commitment.

To

the

extent

that

unpaid

amounts

owed

to

the

Funds

exceed

a

predetermined

threshold

agreed

to

with

the

counterparty,

as

stated

in

the

counterparties'

master

netting

agreements

("Master

Netting

Agreements"),

such

counterparty

shall

advance

collateral

to

the

Funds

in

the

form

of

cash

or

cash

equivalents

equal

in

value

to

the

unpaid

amount

owed

to

the

Funds.

If

the

unpaid

amount

owed

to

the

Funds

subsequently

decreases,

the

Funds

would

be

required

to

return

all

or

a

portion

of

the

collateral.

Master

Netting

Agreements

may

also

help

limit

counterparty

risk

by

specifying

collateral

posting

arrangements

at

pre-arranged

exposure

levels.

Under

the

Master

Netting

Agreements,

collateral

is

routinely

transferred

if

the

total

net

exposure

to

certain

transactions

governed

under

the

relevant

master

netting

agreement

with

a

counterparty

exceeds

a

specified

threshold.

The

financial

instruments

that

are

subject

to

Master

Netting

Agreements

or

similar

agreements

may

include

right

of

setoff

provisions.

Derivative

instruments

include

provisions

to

setoff

positions

covered

under

the

agreements

with

the

same

counterparties

and

provisions

to

setoff

positions

outside

of

the

agreements

with

the

same

counterparties

in

the

event

of

default

by

one

of

the

parties.

Derivative

instruments

are

shown

gross

on

the

statements

of

assets

and

liabilities.

Derivative

instruments

also

include

collateral

provisions.

Collateral

received

and

pledged

are

generally

settled

daily

with

each

counterparty.

As

of

December

31,

2025

,

none

of

the

Funds

had

financial

assets

and

liabilities

subject

to

Master

Netting

Agreements

or

similar

agreements.

Cross

Trades.

The

Funds

may

engage

in

cross

trades.

A

cross

trade

is

a

purchase

or

sale

transaction

between

affiliated

portfolios

executed

directly

or

through

an

intermediary.

Mutual

funds

and

other

managed

portfolios

may

be

considered

affiliated

if

they

have

a

common

investment

advisor,

so

a

fund

may

be

considered

affiliated

with

any

portfolio

for

which

the

fund's

sub-advisor

acts

as

an

investment

advisor.

Such

transactions

are

permissible

provided

that

the

conditions

of

Rule

17a-7

under

the

1940

Act

are

satisfied.

For

the

year ended

December

31,

2025,

none

of

the

Funds

had

cross

trades.

Deposits

with

Counterparty.

Cash

pledged

as

collateral

is

reflected

as

an

asset

on

the

statements

of

assets

and

liabilities

as

deposits

with

counterparty.

There

are

a

variety

of

security

types

which

require

varying

levels

of

pledged

collateral.

Customer

account

agreements

govern

cleared

derivatives

transactions

such

as

futures

contracts

and

certain

swap

agreements.

Such

transactions

require

posting

of

initial

margin

as

determined

by

each

relevant

clearing

agency

which

is

segregated

in

an

account

at

a

futures

commission

merchant

("FCM")

registered

with

the

Commodity

Futures

Trading

Commission.

International

Swaps

and

Derivatives

Association

("ISDA")

accounts

are

maintained

in

a

segregated

account

at

the

custodian

for

over-the-counter

("OTC")

derivatives.

Master

Securities

Forward

Transaction

Agreements

("MSFTA")

accounts

are

also

maintained

in

a

segregated

account

at

the

custodian

for

collateral

related

to

forward

currency

contracts

and

"to-be-announced"

("TBA")

securities.

Certain

of

the Funds may

pledge

cash

to

a

broker

for

securities

sold

short.

As

of

December

31,

2025,

deposits

with

counterparty

were

as

follows

(amounts

in

thousands):

Foreign

Currency

Contracts.

Certain

of

the

Funds

may

be

subject

to

foreign

currency

exchange

rate

risk

in

the

normal

course

of

pursuing

such

Funds'

investment

objectives.

The

Funds

may

use

foreign

currency

contracts

to

gain

exposure

to,

or

hedge

against

changes

in

the

value

of

foreign

currencies.

Certain

of

the

Funds

enter

into

forward

contracts

to

purchase

and

sell

foreign

currencies

at

a

specified

future

date

at

a

fixed

exchange

rate.

Forward

foreign

currency

contracts

are

valued

at

the

forward

rate,

and

are

marked-to-market

daily.

The

change

in

fair

value

is

recorded

by

the

Funds

as

an

unrealized

gain

or

loss.

When

the

contract

is

closed,

the

Funds

record

a

realized

gain

or

loss

equal

to

the

difference

between

the

value

of

the

contract

at

the

time

it

was

opened

and

the

value

at

the

time

it

was

closed.

FCM

(Futures

and

Cleared

Swaps)

MSFTA

(Forward

Currency

Contracts

and

TBA

Securities)

Options

Total

Deposits

with

Counterparty

Core

Plus

Bond

Account

$

—

$

$

—

$

Government

&

High

Quality

Bond

Account

—

—

LargeCap

Growth

Account

I

—

—

LargeCap

S&P

500

Managed

Volatility

Index

Account

—

—

986

986

SAM

Balanced

Portfolio

—

—

SAM

Conservative

Balanced

Portfolio

—

—

SAM

Flexible

Income

Portfolio

—

—

Short-Term

Income

Account

—

—

3. Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

The

use

of

forward

foreign

currency

contracts

does

not

eliminate

the

fluctuations

in

underlying

prices

of

the

Funds'

portfolio

securities,

but

it

does

establish

a

rate

of

exchange

that

can

be

achieved

in

the

future.

Although

forward

foreign

currency

contracts

limit

the

risk

of

loss

due

to

a

decline

in

the

value

of

the

hedged

currency,

they

also

limit

any

potential

gain

that

might

result

should

the

value

of

the

currency

increase.

In

addition,

the

Funds

could

be

exposed

to

risks

if

the

counterparties

to

the

contracts

are

unable

to

meet

the

terms

of

their

contracts

or

if

the

value

of

the

currency

changes

unfavorably

to

the

U.S.

dollar

or

other

respective

currency.

Futures

Contracts.

The Funds

are

subject

to

equity

price

risk,

interest

rate

risk,

and

foreign

currency

exchange

rate

risk

in

the

normal

course

of

pursuing

their

investment

objectives.

The Funds

(with

the

exception

of

Diversified

Balanced

Account,

Diversified

Balanced

Strategic

Allocation

Account, Diversified

Growth

Account,

Diversified

Growth

Strategic

Allocation

Account,

Diversified

Income

Account,

and

Principal

LifeTime

Funds)

may

enter

into

futures

contracts

to

hedge

against

changes

in

or

to

gain

exposure

to,

change

in

the

value

of

equities,

interest

rates

and

foreign

currencies.

Initial

margin

deposits

are

made

by

cash

deposits

or

segregation

of

specific

securities

as

may

be

required

by

the

exchange

on

which

the

transaction

was

conducted.

Pursuant

to

the

contracts,

typically a

fund agrees

to

receive

from

or

pay

to

the

broker,

an

amount

of

cash

equal

to

the

daily

fluctuation

in

the

value

of

the

contract.

Such

receipts

or

payments

are

known

as

"variation

margin"

and

are

recorded

by

the fund

as

a

variation

margin

receivable

or

payable

on

financial

derivative

instruments.

For

those

contracts

where

daily

variation

margin

payments

are

not

received

from

or

paid

to

the

broker,

the

cumulative

unrealized

gains

or

losses

are

included

in

variation

margin

receivable

or

payable

on

financial

derivative

instruments.

Futures

contracts

are

marked

to

market

daily

at

the

closing

settlement

price

or

in

the

absence

of

such

a

price,

the

most

recent

quoted

bid

price.

If

there

are

no

quotations

available,

the

security

is

valued

at

the

last

available

closing

settlement

price.

During

the

period

the

futures

contracts

are

open,

daily

changes

in

the

fair

value

of

the

contracts

are

recognized

as

unrealized

gains

or

losses.

These

unrealized

gains

or

losses

are

included

as

a

component

of

total

distributable

earnings

(accumulated

loss)

on

the

statements

of

assets

and

liabilities.

When

the

contracts

are

closed,

the fund

recognizes

a

realized

gain

or

loss

equal

to

the

difference

between

the

proceeds

from,

or

cost

of,

the

closing

transaction

and

the

fund's

cost

basis

in

the

contract.

There

is

minimal

counterparty

credit

risk

to

the Funds

because

futures

are

exchange

traded

and

the

exchange's

clearinghouse,

as

counterparty

to

all

exchange

traded

futures,

guarantees

the

futures

against

default.

Long

equity

futures

contracts

are

used

to

obtain

market

exposure

for

the

cash

balances

that

are

maintained

by

certain

of

the

Funds

and

the

notional

values

of

the

futures

contracts

will

vary

in

accordance

with

changing

cash

balances.

Long

and

short

U.S.

Treasury

futures

contracts

are

used

to

obtain

interest

rate

exposure

in

order

to

manage

duration

of

Core

Plus

Bond Account,

Government

&

High

Quality

Bond

Account,

and

Short-

Term

Income

Account.

The

notional

values

of

the

futures

contracts

will

vary

in

accordance

with

changing

duration

of

these

funds.

Illiquid

Securities.

Illiquid

securities

generally

cannot

be

sold

or

disposed

of

in

the

ordinary

course

of

business

(within

seven

calendar

days)

at

approximately

the

value

at

which

each

of

the

Funds

has

valued

the

investments.

This

may

have

an

adverse

effect

on

each

of

the

Funds'

ability

to

dispose

of

particular

illiquid

securities

at

fair

value

and

may

limit

each

of

the

Funds'

ability

to

obtain

accurate

market

quotations

for

purposes

of

valuing

the

securities.

Indemnification.

Under

the

Fund's

by-laws,

present

and

past

officers,

directors,

and

employees

are

indemnified

against

certain

liabilities

arising

out

of

the

performance

of

their

duties.

In

addition,

in

the

normal

course

of

business,

the

Fund

may

enter

into

a

variety

of

contracts

that

may

contain

representations

and

warranties

which

provide

general

indemnifications.

The

Fund's

maximum

exposure

under

these

arrangements

is

unknown,

as

this

would

involve

future

claims

that

may

be

made

against

the

Fund.

Operating

Segments.

An

operating

segment

is

defined

in

ASC

Topic

280,

Segment

Reporting,

as

a

component

of

a

public

entity

that

engages

in

business

activities

from

which

it

may

recognize

revenues

and

incur

expenses,

has

operating

results

that

are

regularly

reviewed

by

the

public

entity's

chief

operating

decision

maker

("CODM")

to

make

decisions

about

resources

to

be

allocated

to

the

segment

and

assess

its

performance,

and

has

discrete

financial

information

available. Committees

and

working

groups

within

Management

under

the

direction

of

the

President

act

as

the

Funds'

CODM.

Each

of

the

Funds

represents

a

single

operating

segment.

The

CODM

monitors

the

operating

results

of

the

Funds

as

a

whole

and

the

Funds'

strategic

asset

allocation

to

ensure

compliance

with

the defined

investment

strategy

executed

by

the

Funds'

portfolio

managers

as

a

team.

The

types

of

investments

from

which

the

Funds

generate

their

returns

are

reflected

on

the

schedules

of

investments.

The

financial

information

provided

to

and

reviewed

by

the

CODM

is

consistent

with

that

presented

in

the

statements

of

operations

and

financial

highlights.

The

measures

shown

within

these

statements

including

net

investment

income

(loss),

total

return,

and

ratio

of

expenses

to

average

net

assets

are

used

by

the

CODM

to

assess

the

segments'

performance

versus

the

Funds'

comparative

benchmarks

and

investment

objectives,

and

to

make

resource

allocation

decisions

for

the

Funds'

single

segment.

Segment

assets

are

reported

on

the

statements

of

assets

and

liabilities

as

total

assets.

Options

Contracts.

The

Funds

may

write

and

purchase

call

and

put

options

on

securities

and

on

securities

indices

to

hedge

against

a

decline

in

the

value

of

securities

owned

or

an

increase

in

the

price

of

securities

that

the

Funds

plan

to

purchase,

or

to

generate

additional

revenue.

Exchange-

traded

options

may

be

closed

out

only

on

an

exchange

that

generally

provides

a

liquid

secondary

market

for

an

option

of

the

same

series.

Over

3. Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

the

Counter

("OTC")

options

differ

from

exchange-traded

options

in

that

they

are

two-party

contracts,

with

price

and

other

terms

negotiated

between

buyer

and

seller,

and

generally

do

not

have

as

much

market

liquidity

as

exchange-traded

options.

An

OTC

option

(an

option

not

traded

on

an

established

exchange)

may

be

closed

out

only

by

agreement

with

the

other

party

to

the

original

option

transaction.

FLexible

EXchange

("FLEX")

options

are

customized

options

contracts

available

through

national

securities

exchanges

that

are

guaranteed

for

settlement

by

the

Options

Clearing

Corporation

("OCC"),

a

market

clearinghouse.

FLEX

options

provide

investors

with

the

ability

to

customize

terms

of

an

option,

including

exercise

prices,

exercise

styles,

and

expiration

dates

while

achieving

price

discovery

in

price

competitive,

transparent

auction

markets

and

avoiding

the

counterparty

exposure

of

the

OTC

options

positions.

All

FLEX

options

in

the

Funds

are

European-style

options

that

can

only

be

exercised

at

the

expiration

date

of

the

option.

Writing

put

options

tends

to

increase

a

fund's

exposure

to

the

underlying

instrument.

Writing

call

options

tends

to

decrease

a

fund's

exposure

to

the

underlying

instrument.

When

a

fund

writes

a

call

or

put

option,

an

amount

equal

to

the

premium

received

is

recorded

as

a

liability

and

subsequently

marked

to

market

to

reflect

the

current

value

of

the

option

written.

These

liabilities

are

reflected

as

options

contracts

written

on

the

statements

of

assets

and

liabilities.

Premiums

received

from

writing

options

which

expire

are

treated

as

realized

gains.

Premiums

received

from

writing

options

which

are

exercised

or

closed

are

added

to

the

proceeds

or

offset

against

amounts

paid

on

the

underlying index

to

determine

the

realized

gain

or

loss.

A

fund,

as

a

writer

of

an

option,

has

no

control

over

whether

the

underlying

index

may

be

sold

(call)

or

purchased

(put)

and

as

a

result

bears

the

market

risk

of

an

unfavorable

change

in

the

price

of

the

index

underlying

the

written

option.

There

is

the

risk a

fund may

not

be

able

to

enter

into

a

closing

transaction

because

of

an

illiquid

market.

The

maximum

potential

amount

of

future

payments

(undiscounted)

that

a

fund as

a

writer

of

put

options

could

be

required

to

make

is

equal

to

the

notional

amount

multiplied

by

the

exercise

price

as

shown

in

the

schedules

of

investments. A

fund may

also

purchase

put

and

call

options.

Purchasing

call

options

tends

to

increase a

fund's exposure

to

the

underlying

instrument.

Purchasing

put

options

tends

to

decrease a

fund's

exposure

to

the

underlying

instrument.

A

fund pays

a

premium

which

is

included

on

the fund's

statements

of

assets

and

liabilities

as

an

investment

and

subsequently

marked

to

market

to

reflect

the

current

value

of

the

option.

Premiums

paid

for

purchasing

options

which

expire

are

treated

as

realized

losses.

The

risk

associated

with

purchasing

put

and

call

options

is

limited

to

the

premium

paid.

Premiums

paid

for

purchasing

options

which

are

exercised

or

closed

are

added

to

the

amounts

paid

or

offset

against

the

proceeds

on

the

underlying

index

transaction

to

determine

the

realized

gain

or

loss.

Details

of

options

contracts

open

at year

end

are

included

in

the

Funds'

schedules

of

investments.

Private

Investments

in

Public

Equity.

The

Funds

may

invest

in

private

investments

in

public

equity

("PIPEs")

which

are

issued

by

a

company

in

the

secondary

market

as

a

means

of

raising

capital.

In

connection

with

PIPEs,

the

Funds

may

enter

into

unfunded

commitments.

Commitments

may

be

subject

to

various

contingencies

and

are

recognized

when

the

commitment

is

legally

binding.

These

contingencies

are

considered

in

the

valuation

of

the

commitments.

The

Funds

are

obligated

to

fund

these

commitments

when

the

contingencies

are

met

and

therefore,

the

Funds

must

have

funds

sufficient

to

cover

their

obligation.

Commitments

are

marked

to

market

daily

and

the

unrealized

gain

or

loss

is

shown

as

a

separate

line

item

called

unrealized

gain

or

loss

on

unfunded

commitments

on

the

statements

of

assets

and

liabilities

and

included

in

the

net

change

in

unrealized

appreciation/(depreciation)

of

investments

on

the

statements

of

operations,

as

applicable.

As

of

year

end,

the

commitments,

if

any, are

typically

categorized

as

Level

within

the

disclosure

hierarchy.

As of

December

31,

2025,

the

Funds

had

no

unfunded

commitments

in

connection

with

PIPEs.

Rebates.

Subject

to

best

execution,

the

Funds

may

direct

certain

portfolio

transactions

to

brokerage

firms

that,

in

turn,

have

agreed

to

rebate

a

portion

of

the

related

brokerage

commission

to

the

Funds

in

cash.

Commission

rebates

are

included

as

a

component

of

realized

gain

from

investment

transactions

in

the

statements

of

operations.

Restricted

Securities.

Certain

of

the

Funds

may

invest

in

securities

that

are

subject

to

legal

or

contractual

restrictions

on

resale.

These

securities

generally

may

be

resold

in

transactions

exempt

from

registration

or

to

the

public

if

the

securities

are

registered.

Disposal

of

these

securities

may

involve

time-consuming

negotiations

and

expense,

and

prompt

sale

at

an

acceptable

price

may

be

difficult.

Securities

Lending.

As

footnoted

in

the

schedules

of

investments,

certain

of

the

Funds

may

lend

portfolio

securities

to

approved

brokerage

firms

to

earn

additional

income.

The

Funds

receive

collateral,

in

the

form

of

cash,

against

the

loaned

securities.

During

the

period

of

the

loan,

the

borrower

must

maintain

collateral

in

an

amount

not

less

than

102%

of

the

market

value

of

the

domestic

and

foreign

fixed

income

loaned

securities

and

105%

of

the

market

value

of

the

foreign

equity

loaned

securities.

The

market

value

of

the

loaned

securities

is

determined

at

the

close

of

business

of

the

Funds

and

any

additional

required

collateral

is

delivered

to

the

Funds

on

the

next

business

day.

The

transactions

are

accounted

for

as

secured

borrowings

and

the

remaining

contractual

maturity

is

overnight

and

continuous

for

all

securities. The

cash

collateral

received

is

usually

invested

in

an

SEC-registered

money

market

mutual

fund

and

the

Funds

could

realize

a

loss

on

such

investments.

Further,

the

Funds

could

experience

a

delay

in

recovering their

securities

and

possible

loss

of

income

or

value

if

the

borrower

fails

to

return

them.

Securities

lending

income,

net

of

related

fees,

is

shown

on

the

statements

of

operations.

3. Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

Senior

Floating

Rate

Interests.

The

Funds

may

invest

in

senior

floating

rate

interests

(bank

loans).

Senior

floating

rate

interests

typically

hold

the

most

senior

position

in

the

capital

structure

of

a

business

entity

(the

"Borrower"),

and

are

secured

by

specific

collateral

and

have

a

claim

on

the

assets

and/or

stock

of

the

Borrower

that

is

senior

to

that

held

by

subordinated

debtholders

and

stockholders

of

the

Borrower.

Senior

floating

rate

interests

are

typically

structured

and

administered

by

a

financial

institution

that

acts

as

the

agent

of

the

lenders

participating

in

the

senior

floating

rate

interest.

Borrowers

of

senior

floating

rate

interests

are

typically

rated

below-investment-grade,

which

means

they

are

more

likely

to

default

than

investment-grade

loans.

A

default

could

lead

to

non-payment

of

income

which

would

result

in

a

reduction

of

income

to

the

fund

and

there

can

be

no

assurance

that

the

liquidation

of

any

collateral

would

satisfy

the

Borrower's

obligation

in

the

event

of

non-payment

of

scheduled

interest

or

principal

payments,

or

that

such

collateral

could

be

readily

liquidated.

Senior

floating

rate

interests

pay

interest

at

rates

which

are

periodically

reset

by

reference

to

a

base

lending

rate

plus

a

spread.

These

base

lending

rates

are

generally

the

prime

rate

offered

by

a

designated

U.S.

bank,

LIBOR,

SOFR,

or

a

similar

reference

rate.

Senior

floating

rate

interests

generally

are

subject

to

mandatory

and/or

optional

prepayment.

Because

of

these

mandatory

prepayment

conditions

and

because

there

may

be

significant

economic

incentives

for

the

Borrower

to

repay,

prepayments

of

senior

floating

rate

interests

may

occur.

As

a

result,

the

actual

remaining

maturity

of

senior

floating

rate

interests

may

be

substantially

less

than

stated

maturities

shown

in

the

schedules

of

investments.

In

connection

with

the

senior

floating

rate

interests,

the

Funds

may

also

enter

into

unfunded

loan

commitments.

All

or

a

portion

of

the

loan

commitments

may

be

unfunded.

The

Funds

are

obligated

to

fund

these

loan

commitments

at

the

Borrower's

discretion.

Therefore,

the

Funds

must

have

funds

sufficient

to

cover

their

contractual

obligation.

Unfunded

loan

commitments

are

marked

to

market

daily

and

the

unrealized

gain

or

loss

is

shown

as

a

separate

line

item

called

unrealized

gain

or

loss

on

unfunded

commitments

on

the

statements

of

assets

and

liabilities

and

included

in

the

net

change

in

unrealized

appreciation/(depreciation)

of

investments

on

the

statements

of

operations,

as

applicable.

As

of

period

end,

the

unfunded

loan

commitments

are

categorized

as

Level

within

the

disclosure

hierarchy.

As

of

December

31,

2025

,

the

Funds

had

no

unfunded

loan

commitments.

Swap

Agreements.

Certain

of

the

Funds

may

enter

into swap

agreements

during

the

period.

Swap

agreements

are

negotiated

agreements

between

a

fund and

a

counterparty

to

exchange

a

series

of

cash

flows

at

specified

intervals

based

upon,

or

calculated

by

reference

to,

changes

in

specified

prices

or

rates

for

a

specified

amount

of

an

underlying

asset.

A

fund may

enter

into

credit

default,

interest

rate,

or

total

return

swap

agreements

to

manage

its

exposure

to

credit,

interest

rate,

or

market

risk.

In

connection

with

these

agreements,

securities

may

be

identified

as

collateral

in

accordance

with

the

terms

of

the

respective

swap

agreements

to

provide

assets

of

value

and

recourse

in

the

event

of

default

or

bankruptcy/

insolvency.

Swap

agreements

are

valued

through

a

pricing

service

or

using

procedures

established

and

periodically

reviewed

by

the

Fund's

Board

of

Directors.

Centrally

cleared

swaps

are

valued

using

the

last

traded

price

from

the

primary

trading

exchange.

OTC

swaps

are

modeled

taking

into

account

the

counterparties'

creditworthiness

and

using

a

series

of

techniques,

including

simulation

models.

Changes

in

value

are

recorded

as

unrealized

gain

or

loss

which

is

included

as

a

component

of

total

distributable

earnings

(accumulated

loss)

on the

statements

of

assets

and

liabilities.

Upon

termination

of

swap

agreements,

the Funds

recognize

a

realized

gain

or

loss.

Net

periodic

payments

to

be

received

or

paid

are

accrued

daily

and

are

recorded

in

the

statements

of

operations

as

realized

gains

or

losses.

Payments

received

or

made

at

the

beginning

of

the

measurement

period

are

reflected

as

such

on

the

statements

of

assets

and

liabilities

and

represent

payments

made

or

received

upon

entering

into

the

swap

agreement

to

compensate

for

differences

between

the

stated

terms

of

the

swap

agreement

and

prevailing

market

conditions

(credit

spreads,

interest

rates,

and

other

relevant

factors).

These

upfront

payments

are

amortized

daily

over

the

term

of

the

swap

agreement

as

realized

gains

or

losses

on

the

statements

of

operations.

Notional

principal

amounts

are

used

to

express

the

extent

of

involvement

in

these

agreements.

Risks

may

exceed

amounts

shown

on

the

statements

of

assets

and

liabilities.

These

risks

include

changes

in

the

returns

of

the

underlying

instruments,

unfavorable

interest

rate

fluctuation,

that

the

counterparty

to

the

agreements

may

default

on

its

obligation

to

perform

or

disagree

as

to

the

meaning

of

contractual

terms

in

the

agreements,

and

the

possible

lack

of

liquidity

with

respect

to

the

swap

agreements.

The Funds

and

any

counterparty

are

required

to

maintain

an

agreement

that

requires

the Funds

and

that

counterparty

to

monitor

the

net

fair

value

of

all

derivative

transactions

entered

into

pursuant

to

the

contract

between

the Funds

and

such

counterparty.

If

the

net

fair

value

of

such

derivatives

transactions

between

the Funds

and

that

counterparty

exceeds

a

certain

threshold

(as

defined

in

the

agreement),

the Funds

or

the

counterparty

are

required

to

post

cash

and/or

securities

as

collateral.

Fair

values

of

derivatives

transactions

presented

in

the

financial

statements

are

not

netted

with

the

fair

values

of

other

derivatives

transactions

or

with

any

collateral

amounts

posted

by

the Funds

or

any

counterparty.

3. Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

Credit

default

swaps

involve

commitments

to

pay

a

fixed

rate

at

a

predetermined

frequency

in

exchange

for

a

lump

sum

payment

if

a

"credit

event",

as

defined

in

the

agreement,

affecting

a

third

party

occurs.

Credit

events

may

include

a

failure

to

pay

interest,

bankruptcy,

restructuring,

or

other

event

as

defined

in

the

agreement.

A

"buyer"

of

credit

protection

agrees

to

pay

a

counterparty

to

assume

the

credit

risk

of

an

issuer

upon

the

occurrence

of

a

credit

event.

The

"seller"

of

the

protection

receives

periodic

payments

and

agrees

to

assume

the

credit

risk

of

an

issuer

upon

the

occurrence

of

a

credit

event.

As

the

seller

of

credit

protection, a

fund would

add

leverage

to

its

portfolio

because,

in

addition

to

its

total

net

assets,

a

fund would

be

subject

to

investment

exposure

on

the

notional

amount

of

the

swap.

If a

fund is

a

seller

of

protection

and

a

credit

event

occurs,

as

defined

under

the

terms

of

that

particular

swap

agreement,

the fund

will

either

(i) pay

to

the

buyer

of

protection

an

amount

equal

to

the

notional

amount

of

the

swap

and

take

delivery

of

the

referenced

obligation,

other

deliverable

obligations

or

underlying

securities

comprising

the

referenced

index

or

(ii) pay

a

net

settlement

amount

in

the

form

of

cash

or

securities

equal

to

the

notional

amount

of

the

swap

less

the

recovery

value

of

the

referenced

obligation

or

underlying

securities

comprising

the

referenced

index.

If a fund

is

a

buyer

of

protection

and

a

credit

event

occurs,

as

defined

under

the

terms

of

that

particular

swap

agreement,

a

fund will

either

(i) receive

from

the

seller

of

protection

an

amount

equal

to

the

notional

amount

of

the

swap

and

deliver

the

referenced

obligation,

other

deliverable

obligations

or

underlying

securities

comprising

the

referenced

index

or

(ii) receive

a

net

settlement

amount

in

the

form

of

cash

or

securities

equal

to

the

notional

amount

of

the

swap

less

the

recovery

value

of

the

referenced

obligation

or

underlying

securities

comprising

the

referenced

index.

Credit

default

swap

agreements

on

credit

indices

involve

one

party

making

a

stream

of

payments

to

another

party

in

exchange

for

the

right

to

receive

a

specified

return

in

the

event

of

a

write-down,

principal

shortfall,

interest

shortfall

or

default

of

all

or

part

of

the

referenced

entities

comprising

the

credit

index.

A

credit

index

is

a

basket

of

credit

instruments

or

exposures

designed

to

be

representative

of

some

part

of

the

credit

market

as

a

whole.

These

indices

are

made

up

of

reference

credits

that

are

judged

by

a

poll

of

dealers

to

be

the

most

liquid

entities

in

the

credit

default

swap

market

based

on

the

sector

of

the

index.

Components

of

the

indices

may

include,

but

are

not

limited

to,

investment

grade

securities,

high

yield

securities,

asset

backed

securities,

emerging

markets,

and/or

various

credit

ratings

within

each

sector.

Credit

indices

are

traded

using

credit

default

swaps

with

standardized

terms

including

a

fixed

spread

and

standard

maturity

dates.

An

index

credit

default

swap

references

all

the

names

in

the

index,

and

if

there

is

a

default,

the

credit

event

is

settled

based

on

that

name's

weight

in

the

index.

The

composition

of

the

indices

changes

periodically,

usually

every

six

months,

and

for

most

indices,

each

name

has

an

equal

weight

in

the

index.

A

fund may

use

credit

default

swaps

on

credit

indices

to

hedge

a

portfolio

of

credit

default

swaps

or

bonds,

which

is

less

expensive

than

it

would

be

to

buy

many

credit

default

swaps

to

achieve

a

similar

effect.

Credit

default

swaps

on

indices

are

benchmarks

for

protecting

investors

owning

bonds

against

default,

and

traders

use

them

to

speculate

on

changes

in

credit

quality.

For

credit

default

swap

agreements

on

asset-backed

securities

and

credit

indices,

the

quoted

market

prices

and

resulting

values

serve

as

the

indicator

of

the

current

status

of

the

payment/performance

risk.

Wider

credit

spreads

and

increasing

values,

in

absolute

terms

when

compared

to

the

notional

amount

of

the

swap,

represent

a

deterioration

of

the

referenced

entity's

credit

soundness

and

a

greater

likelihood

or

risk

of

default

or

other

credit

event

occurring

as

defined

under

the

terms

of

the

agreement.

The

maximum

potential

amount

of

future

payments

(undiscounted)

that

a

fund as

a

seller

of

protection

could

be

required

to

make

under

a

credit

default

swap

agreement

would

be

an

amount

equal

to

the

notional

amount

of

the

agreement.

Notional

amounts

of

all

credit

default

swap

agreements

outstanding

as

of December

31,

2025

for

which a

fund

is

the

seller

of

protection

are

disclosed

in

the

footnotes

to

the

schedules

of

investments.

These

potential

amounts

would

be

partially

offset

by

any

recovery

values

of

the

respective

referenced

obligations,

upfront

payments

received

upon

entering

into

the

agreement,

or

net

amounts

received

from

the

settlement

of

buy

protection

credit

default

swap

agreements

entered

into

by a

fund for

the

same

referenced

entity

or

entities.

Interest

rate

swaps

involve

the

commitment

to

exchange

fixed

or

floating

rate

cash

flows

based

on

changes

in

the

value

of

a

specific

reference

rate.

Certain

collateral

amounts

relate

to

exchange

cleared

swaps

which

are

not

subject

to

Master

Netting

Agreements

with

counterparties.

To

Be

Announced

Securities.

The

Funds

may

trade

portfolio

securities

on

a

TBA

or

when-issued

basis.

In

a

TBA

or

when-issued

transaction,

the

Funds

commit

to

purchase

or

sell

securities

for

which

all

specific

information

is

not

known

at

the

time

of

the

trade.

Securities

purchased

on

a

TBA

or

when-issued

basis

are

not

settled

until

they

are

delivered

to

the

Funds,

normally

to

days

later.

These

transactions

are

subject

to

market

fluctuations

and

their

current

value

is

determined

in

the

same

manner

as

for

other

portfolio

securities.

Underlying

Funds.

The

performance

and

risks

of

each

Principal

LifeTime

Fund,

each

SAM

Portfolio,

Diversified

Balanced

Account,

Diversified

Balanced

Adaptive

Allocation

Account,

Diversified

Balanced

Strategic

Allocation

Account,

Diversified

Growth

Account,

Diversified

Growth

Strategic

Allocation

Account,

Diversified

Growth

Adaptive

Allocation

Account,

and

Diversified

Income

Account

(singly,

"a

fund

of

funds"

and

collectively,

"the

funds

of

funds")

directly

corresponds

to

the

performance

and

risks

of

the

Underlying

Funds

in

which

the

fund

of

funds

invests.

3. Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

By

investing

in

many

Underlying

Funds,

the

funds

of

funds

have

partial

exposure

to

the

risks

of

many

different

areas

of

the

market.

The

more

a

fund

of

funds

allocates

to

stock

funds,

the

greater

the

expected

risk.

An

underlying

fund

to

a

fund

of

funds

may

experience

relatively

large

redemptions

or

purchases

as

the

fund

of

funds

periodically

reallocates

or

rebalances

its

assets.

These

transactions

may

accelerate

the

realization

of

taxable

income

if

sales

of

portfolio

securities

result

in

gains

and

could

increase

transaction

costs.

In

addition,

when

a

fund

of

funds

reallocates

or

redeems

significant

assets

away

from

an

underlying

fund,

the

loss

of

assets

to

the

underlying

fund

could

result

in

increased

expense

ratios

for

that

fund.

The

Manager

is

the

advisor

to

the

Fund,

Principal

Funds,

Inc.,

Principal

Exchange-Traded

Funds,

and

other

asset

allocation

programs.

The

Manager

is

committed

to

minimizing

the

potential

impact

of

underlying

fund

risk

to

the

extent

consistent

with

pursuing

the

investment

objectives

of

the

funds

of

funds

which

it

manages.

Each

may

face

conflicts

of

interest

in

fulfilling

its

responsibilities

to

all

such

funds.

Shareholder

reports

for

Principal

Funds,

Inc.

and

Principal

Exchange-Traded

Funds

can

be

found

at

www.PrincipalAM.com.

As

of

December

31,

2025,

series

of

the

Fund

owned

the

following

percentages,

in

the

aggregate,

of

the

outstanding

shares

of

the

Funds

listed

below:

U.S.

Government

Agencies

or

Government-Sponsored

Enterprises.

Certain

of

the

Funds

may

invest

in

U.S.

Government

agencies

or

government-sponsored

enterprises.

U.S.

Government

securities

are

obligations

of,

and

in

certain

cases,

guaranteed

by,

the

U.S.

Government

or

its

agencies.

The

U.S.

Government

does

not

guarantee

the

net

asset

value

of

the

Funds'

shares.

Some

U.S.

Government

securities

such

as

treasury

bills,

notes

and

bonds,

and

securities

guaranteed

by

the

Government

National

Mortgage

Association

("GNMA")

are

supported

by

the

full

faith

and

credit

of

the

U.S.

Government.

Other

securities,

such

as

those

of

the

Federal

Home

Loan

Bank,

are

supported

by

the

right

of

the

issuer

to

borrow

from

the

U.S.

Department

of

the

Treasury.

Still

other

securities,

such

as

those

of

the

Federal

National

Mortgage

Association

("FNMA"),

are

supported

by

the

discretionary

authority

of

the

U.S.

Government

to

purchase

the

agency's

obligations.

Government

related

guarantors

(those

not

backed

by

the

full

faith

and

credit

of

the U.S.

Government)

include

the FNMA

and

the

Federal

Home

Loan

Mortgage

Corporation

("FHLMC").

The

FNMA

is

a

government

sponsored

corporation,

the

common

stock

of

which

is

owned

entirely

by

private

stockholders.

The

FNMA

purchases

conventional

residential

mortgages

from

a

list

of

approved

seller/servicers

which

include

state

and

federally

chartered

savings

and

loan

associations,

mutual

savings

banks,

commercial

banks,

credit

unions,

and

mortgage

bankers.

Pass-through

securities

issued

by

the

FNMA

are

guaranteed

as

to

the

timely

payment

of

principal

and

interest

by

the

FNMA,

but

are

not

backed

by

the

full

faith

and

credit

of

the

U.S.

Government.

The

FHLMC

issues

participation

certificates,

which

are

pass-through

securities,

each

representing

an

undivided

interest

in

a

pool

of

residential

mortgages.

The

FHLMC

guarantees

the

timely

payment

of

interest

and

ultimate

collection

of

principal,

but

participation

certificates

are

not

backed

by

the

full

faith

and

credit

of

the

U.S.

Government.

Derivatives.

The

following

tables

provide

information

about

where

in

the

statements

of

assets

and

liabilities

and

statements

of

operations

information

about

derivatives

can

be

found

(amounts

in

thousands):

Total

Percentage

of

Outstanding

Shares

Owned

Bond

Market

Index

Account

97.13 %

Equity

Income

Account

16.31 Government

&

High

Quality

Bond

Account

15.34 LargeCap

S&P

500

Index

Account

60.71 LargeCap

S&P

500

Managed

Volatility

Index

Account

100.00 MidCap

Account

1.37 Real

Estate

Securities

Account

5.44 Asset

Derivatives

December

31,

2025

Liability

Derivatives

December

31,

2025

Derivatives

not

accounted

for

as

hedging

instruments

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Core

Plus

Bond

Account

Interest

Rate

Contracts

Receivables,

Total

distributable

earnings

(accumulated

loss)

$

\*

Payables,

Total

distributable

earnings

(accumulated

loss)

$

\*

Government

&

High

Quality

Bond

Account

Interest

Rate

Contracts

$

—

Payables,

Total

distributable

earnings

(accumulated

loss)

$

\*

LargeCap

Growth

Account

I

Equity

Contracts

$

—

Payables,

Total

distributable

earnings

(accumulated

loss)

$

\*

LargeCap

S&P

500

Index

Account

Equity

Contracts

$

—

Payables,

Total

distributable

earnings

(accumulated

loss)

$

\*

3. Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

Asset

Derivatives

December

31,

2025

Liability

Derivatives

December

31,

2025

Derivatives

not

accounted

for

as

hedging

instruments

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Statement

of

Assets

and

Liabilities

Location

Fair

Value

LargeCap

S&P

500

Managed

Volatility

Index

Account

Equity

Contracts

$

—

Payables,

Total

distributable

earnings

(accumulated

loss)

$

\*

SAM

Balanced

Portfolio

Interest

Rate

Contracts

Receivables,

Total

distributable

earnings

(accumulated

loss)

$

\*

Payables,

Total

distributable

earnings

(accumulated

loss)

$

\*

SAM

Conservative

Balanced

Portfolio

Interest

Rate

Contracts

Receivables,

Total

distributable

earnings

(accumulated

loss)

$

\*

Payables,

Total

distributable

earnings

(accumulated

loss)

$

\*

SAM

Flexible

Income

Portfolio

Interest

Rate

Contracts

Receivables,

Total

distributable

earnings

(accumulated

loss)

$

\*

Payables,

Total

distributable

earnings

(accumulated

loss)

$

\*

Short-Term

Income

Account

Interest

Rate

Contracts

Receivables,

Total

distributable

earnings

(accumulated

loss)

$

\*

Payables,

Total

distributable

earnings

(accumulated

loss)

$

\*

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account

Equity

Contracts

Investment

in

securities

-

at

value\*\*

$

5,463

Payables

$

1,298

U.S.

LargeCap

S&P

500

Index

Buffer

January

Account

Equity

Contracts

Investment

in

securities

-

at

value\*\*

$

4,473

Payables

$

1,113

U.S.

LargeCap

S&P

500

Index

Buffer

July

Account

Equity

Contracts

Investment

in

securities

-

at

value\*\*

$

6,756

Payables

$

1,132

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account

Equity

Contracts

Investment

in

securities

-

at

value\*\*

$

18,628

Payables

$

3,789

\*Includes

cumulative

unrealized

appreciation/(depreciation)

of

exchange

traded

swaps

and/or

futures

contracts

as

shown

in

the

schedules

of

investments.

Only

the

portion

of

the

unrealized

appreciation/(depreciation)

not

yet

cash

settled

is

shown

in

the

statements

of

assets

and

liabilities

as

variation

margin.

\*\*Investment

in

securities

-

at

value

includes

purchased

options

and/or

purchased

swaptions.

Derivatives

not

accounted

for

as

hedging

instruments

Location

of

Gain

or

(Loss)

on

Derivatives

Recognized

in

Statement

of

Operations

Net

Realized

Gain

or

(Loss)

on

Derivatives

Recognized

in

Statement

of

Operations

Net

Change

in

Unrealized

Appreciation/

(Depreciation)

of

Derivatives

Recognized

in

Statement

of

Operations

Core

Plus

Bond

Account

Credit

Contracts

Swap

agreements

$

$

—

Interest

Rate

Contracts

Futures

contracts

$

$

Total

$

$

Diversified

Balanced

Adaptive

Allocation

Account

Equity

Contracts

Futures

contracts

$

(3,653)

$

—

Diversified

Growth

Adaptive

Allocation

Account

Equity

Contracts

Futures

contracts

$

(45,064)

$

—

Government

&

High

Quality

Bond

Account

Interest

Rate

Contracts

Futures

contracts

$

(170) $

LargeCap

Growth

Account

I

Equity

Contracts

Futures

contracts

$

$

LargeCap

S&P

500

Index

Account

Equity

Contracts

Futures

contracts

$

4,978

$

(24) LargeCap

S&P

500

Managed

Volatility

Index

Account

Equity

Contracts

Investment

transactions/Investments\*

$

(814) $

Futures

contracts

$

$

(8)

Options

and

swaptions

$

1,404

$

(120) Total

$

824

$

(49)

SAM

Balanced

Portfolio

Interest

Rate

Contracts

Futures

contracts

$

(69) $

(31) SAM

Conservative

Balanced

Portfolio

Interest

Rate

Contracts

Futures

contracts

$

(63) $

(25) SAM

Flexible

Income

Portfolio

Interest

Rate

Contracts

3. Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

The

following

table

includes

a

summary

of

the

average

quarterly

outstanding

notional

by

derivative

instrument

type

(for

the

quarter

ends

that

such

instruments

were

held)

for

the year

ended

December

31,

2025 (amounts

in

thousands):

Derivatives

not

accounted

for

as

hedging

instruments

Location

of

Gain

or

(Loss)

on

Derivatives

Recognized

in

Statement

of

Operations

Net

Realized

Gain

or

(Loss)

on

Derivatives

Recognized

in

Statement

of

Operations

Net

Change

in

Unrealized

Appreciation/

(Depreciation)

of

Derivatives

Recognized

in

Statement

of

Operations

SAM

Flexible

Income

Portfolio

(continued)

Futures

contracts

$

(65) $

(25) Short-Term

Income

Account

Interest

Rate

Contracts

Futures

contracts

$

$

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account

Equity

Contracts

Investment

transactions/Investments\*

$

(1,758)

$

Options

and

swaptions

$

1,003

$

(600) Total

$

(755) $

(272) U.S.

LargeCap

S&P

500

Index

Buffer

January

Account

Equity

Contracts

Investment

transactions/Investments\*

$

(1,654)

$

Options

and

swaptions

$

910

$

(18) Total

$

(744) $

U.S.

LargeCap

S&P

500

Index

Buffer

July

Account

Equity

Contracts

Investment

transactions/Investments\*

$

(1,811)

$

(243) Options

and

swaptions

$

867

$

Total

$

(944) $

(136) U.S.

LargeCap

S&P

500

Index

Buffer

October

Account

Equity

Contracts

Investment

transactions/Investments\*

$

(2,255)

$

Options

and

swaptions

$

1,371

$

Total

$

(884) $

\*Investment

transactions

includes

purchased

options

and/or

purchased

swaptions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract

Type

Derivative

Type

Average

Notional

Core

Plus

Bond

Account

Credit

Contracts

Exchange

Cleared

Credit

Default

Swaps

-

Buy

Protection

$

5,100

Interest

Rate

Contracts

Futures

-

Long

65,264

Futures

-

Short

7,120

Government

&

High

Quality

Bond

Account

Interest

Rate

Contracts

Futures

-

Long

4,238

Futures

-

Short

6,916

LargeCap

Growth

Account

I

Equity

Contracts

Futures

-

Long

3,937

LargeCap

S&P

500

Index

Account

Equity

Contracts

Futures

-

Long

45,403

LargeCap

S&P

500

Managed

Volatility

Index

Account

Equity

Contracts

Futures

-

Long

1,889

Purchased

Options

Written

Options

SAM

Balanced

Portfolio

Interest

Rate

Contracts

Futures

-

Long

8,781

SAM

Conservative

Balanced

Portfolio

Interest

Rate

Contracts

Futures

-

Long

6,621

SAM

Flexible

Income

Portfolio

Interest

Rate

Contracts

Futures

-

Long

7,036

3. Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

4. Fair

Valuation

Fair

value

is

defined

as

the

price

that

the Funds

would

receive

upon

selling

a

security

or

transferring

a

liability in

a

timely

transaction

to

an

independent

buyer

in

the

principal

or

most

advantageous

market

of

the

security

at

the

measurement

date.

In

determining

fair

value,

the Funds

may

use

one

or

more

of

the

following

approaches:

market,

income

and/or

cost.

A

hierarchy

for

inputs

is

used

in

measuring

fair

value

that

maximizes

the

use

of

observable

inputs

and

minimizes

the

use

of

unobservable

inputs

by

requiring

that

the

most

observable

inputs

be

used

when

available.

Observable

inputs

are

inputs

that

reflect

the

assumptions

market

participants

would

use

in

pricing

the

asset

or

liability

developed

based

on

market

data

obtained

from

sources

independent

of

the

Funds.

Unobservable

inputs

are

inputs

that

reflect

the

fund's

own

estimates

about

the

estimates

market

participants

would

use

in

pricing

the

asset

or

liability

developed

based

on

the

best

information

available

in

the

circumstances.

The

three-tier

hierarchy

of

inputs

is

summarized

in

the

three

broad

levels

listed

below.

● Level

–

Quoted

prices

are

available

in

active

markets

for

identical

securities

as

of

the

reporting

date.

Investments

which

are

generally

included

in

this

category

include listed

equities

and

exchange-traded

derivatives.

● Level

–

Other

significant

observable

inputs

(including

quoted

prices

for

similar

investments,

interest

rates,

prepayment

speeds,

credit

risk,

etc.).

Investments

which

are

generally

included

in

this

category

include

certain

foreign

equities,

corporate

bonds, municipal

bonds,

OTC

derivatives,

exchange

cleared derivatives, senior

floating

rate

interests,

and

U.S.

Government

and

Government

Agency

Obligations.

● Level

–

Significant

unobservable

inputs

(including

the

Funds'

assumptions

in

determining

the

fair

value

of

investments).

Investments

which are

generally included

in

this

category

include

certain

common

stocks,

convertible

preferred

stocks,

corporate

bonds,

preferred

stocks,

or

senior

floating

rate

interests.

The

availability

of

observable

inputs

can

vary

from

security

to

security

and

is

affected

by

a

wide

variety

of

factors,

including,

for

example,

the

type

of

security,

whether

the

security

is

new

and

not

yet

established

in

the

market

place,

and

other

characteristics

particular

to

the

transaction.

To

the

extent

that

valuation

is

based

on

models

or

inputs

that

are

less

observable

or

unobservable

in

the

market,

the

determination

of

fair

value

requires

more

judgment.

Accordingly,

the

degree

of

judgment

exercised

by

the Funds

in

determining

fair

value

is

greatest

for

instruments

categorized

in

Level

3. In

certain

cases,

the

inputs

used

to

measure

fair

value

may

fall

into

different

levels

of

the

fair

value

hierarchy.

In

such

cases,

for

disclosure

purposes,

the

level

in

the

fair

value

hierarchy

within

which

the

fair

value

measurement

in

its

entirety

falls

is

determined

based

on

the

lowest

level

input

that

is

significant

to

the

fair

value

measurement

in

its

entirety.

Fair

value

is

a

market

based

measure

considered

from

the

perspective

of

a

market

participant

who

holds

the

asset

rather

than

an

entity

specific

measure.

Therefore,

even

when

market

assumptions

are

not

readily

available,

the

Funds'

own

assumptions

are

set

to

reflect

those

that

market

participants

would

use

in

pricing

the

asset

or

liability

at

the

measurement

date.

The

Funds

use

prices

and

inputs

that

are

current

as

of

the

measurement

date,

when

available.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Contract

Type

Derivative

Type

Average

Notional

Short-Term

Income

Account

Interest

Rate

Contracts

Futures

-

Long

4,624

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account

Equity

Contracts

Purchased

Options

Written

Options

U.S.

LargeCap

S&P

500

Index

Buffer

January

Account

Equity

Contracts

Purchased

Options

Written

Options

U.S.

LargeCap

S&P

500

Index

Buffer

July

Account

Equity

Contracts

Purchased

Options

Written

Options

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account

Equity

Contracts

Purchased

Options

Written

Options

3. Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

Investments

which

are

included

in

the

Level

category

may

be

valued

using

quoted

prices

from

brokers

and

dealers

participating

in

the

market

for

these

investments.

These

investments

are

classified

as

Level

investments

due

to

the

lack

of

market

transparency

and

market

corroboration

to

support

these

quoted

prices.

Valuation

models

may

be

used

as

the

pricing

source

for

other

investments

classified

as

Level

3. Valuation

models

rely

on

one

or

more

significant

unobservable

inputs

such

as:

yield

to

maturity,

EBITDA

multiples,

discount

rates,

available

cash,

or

direct

offering

price.

Significant

increases

in

yield

to

maturity,

EBITDA

multiples,

available

cash,

or

direct

offering

price would

have

resulted

in

significantly

higher

fair

value

measurements.

A

significant

increase

in

discount

rates

would

have

resulted

in

a

significantly

lower

fair

value

measurement.

Benchmark

pricing

procedures

set

the

base

price

of

a

security

based

on

current

market

data.

The

base

price

may

be

a

broker-dealer

quote,

transaction

price,

or

internal

value

based

on

relevant

market

data.

The

fair

values

of

these

securities

are

dependent

on

economic,

political,

and

other

considerations.

The

values

of

such

securities

may

be

affected

by

significant

changes

in

the

economic

conditions,

changes

in

government

policies,

and

other

factors

(e.g.,

natural

disasters,

pandemics, accidents,

conflicts,

etc.).

The

inputs

or

methodology

used

for

valuing

securities

are

not

necessarily

an

indication

of

the

risk

associated

with

investing

in

those

instruments.

The

following

is

a

summary

of

the

inputs

used

as

of December

31,

2025

in

valuing

the

Funds'

securities

carried

at

fair

value

(amounts

in

thousands):

Fund

Level

-

Quoted

Prices

Level

-

Other

Significant

Observable

Inputs

Level

-

Significant

Unobservable

Inputs

Totals

(Level

1,2,3)

Blue

Chip

Account

Common

Stocks\*

$

24,351

$

—

$

—

$

24,351

Investment

Companies\*

—

—

Total

investments

in

securities

$

24,449

$

—

$

—

$

24,449

Bond

Market

Index

Account

Bonds\*

—

505,354

—

505,354

Investment

Companies\*

24,237

—

—

24,237

Municipal

Bonds\*

—

10,306

—

10,306

U.S.

Government

&

Government

Agency

Obligations\*

—

1,267,307

—

1,267,307

Total

investments

in

securities

$

24,237

$

1,782,967

$

—

$

1,807,204

Core

Plus

Bond

Account

Bonds\*

—

136,254

—

136,254

Investment

Companies\*

18,933

—

—

18,933

Senior

Floating

Rate

Interests\*

—

5,308

—

5,308

U.S.

Government

&

Government

Agency

Obligations\*

—

95,727

—

95,727

Total

investments

in

securities

$

18,933

$

237,289

$

—

$

256,222

Derivative

Assets

Interest

Rate

Contracts

Futures\*\*

—

—

Derivative

Liabilities

Interest

Rate

Contracts

Futures\*\*

(179) —

—

(179) Diversified

Balanced

Account

Investment

Companies\*

503,67

—

—

503,67

Total

investments

in

securities

$

503,67

$

—

$

—

$

503,67

Diversified

Balanced

Adaptive

Allocation

Account

Investment

Companies\*

217,114

—

—

217,114

Total

investments

in

securities

$

217,114

$

—

$

—

$

217,114

Diversified

Balanced

Strategic

Allocation

Account

Investment

Companies\*

87,643

—

—

87,643

Total

investments

in

securities

$

87,643

$

—

$

—

$

87,643

4. Fair

Valuation

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

Fund

Level

-

Quoted

Prices

Level

-

Other

Significant

Observable

Inputs

Level

-

Significant

Unobservable

Inputs

Totals

(Level

1,2,3)

Diversified

Growth

Account

Investment

Companies\*

$

1,853,317

$

—

$

—

$

1,853,317

Total

investments

in

securities

$

1,853,317

$

—

$

—

$

1,853,317

Diversified

Growth

Adaptive

Allocation

Account

Investment

Companies\*

1,454,785

—

—

1,454,785

Total

investments

in

securities

$

1,454,785

$

—

$

—

$

1,454,785

Diversified

Growth

Strategic

Allocation

Account

Investment

Companies\*

196,215

—

—

196,215

Total

investments

in

securities

$

196,215

$

—

$

—

$

196,215

Diversified

Income

Account

Investment

Companies\*

180,151

—

—

180,151

Total

investments

in

securities

$

180,151

$

—

$

—

$

180,151

Diversified

International

Account

Common

Stocks

Basic

Materials

7,263

4,338

—

11,601

Communications

6,080

19,534

—

25,614

Consumer,

Cyclical

1,958

27,762

—

29,720

Consumer,

Non-cyclical

6,298

38,323

—

44,621

Energy

8,594

3,779

—

12,373

Financial

8,217

47,855

—

56,072

Industrial

2,151

36,635

—

38,786

Technology

34,839

—

34,977

Utilities

—

720

—

720

Investment

Companies\*

4,139

—

—

4,139

Preferred

Stocks\*

—

—

Total

investments

in

securities

$

44,889

$

213,785

$

—

$

258,674

Equity

Income

Account

Common

Stocks\*

671,472

—

—

671,472

Investment

Companies\*

12,090

—

—

12,090

Total

investments

in

securities

$

683,562

$

—

$

—

$

683,562

Global

Emerging

Markets

Account

Common

Stocks

Basic

Materials

1,559

1,759

—

3,318

Communications

1,857

10,843

—

12,700

Consumer,

Cyclical

6,910

—

7,328

Consumer,

Non-cyclical

1,195

5,110

—

6,305

Energy

2,941

—

3,218

Financial

3,260

14,654

—

17,914

Industrial

1,865

6,228

—

8,093

Technology

1,327

19,128

—

20,455

Utilities

795

—

917

Investment

Companies\*

—

—

Preferred

Stocks

Consumer,

Cyclical

—

—

Energy

938

—

—

938

Total

investments

in

securities

$

13,825

$

68,009

$

—

$

81,834

Government

&

High

Quality

Bond

Account

Bonds\*

—

25,290

—

25,290

Investment

Companies\*

901

—

—

901

U.S.

Government

&

Government

Agency

Obligations\*

—

86,923

—

86,923

Total

investments

in

securities

$

901

$

112,213

$

—

$

113,114

Derivative

Liabilities

Interest

Rate

Contracts

Futures\*\*

(24) —

—

(24) 4. Fair

Valuation

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

Fund

Level

-

Quoted

Prices

Level

-

Other

Significant

Observable

Inputs

Level

-

Significant

Unobservable

Inputs

Totals

(Level

1,2,3)

LargeCap

Growth

Account

I

Common

Stocks

Basic

Materials

$

$

—

$

—

$

Communications

136,984

—

—

136,984

Consumer,

Cyclical

25,331

—

—

25,331

Consumer,

Non-cyclical

80,114

—

—

80,114

Energy

—

—

Financial

44,644

—

—

44,644

Industrial

43,496

—

—

43,496

Technology

266,565

—

266,803

Utilities

—

—

Convertible

Preferred

Stocks

Basic

Materials

—

—

Consumer,

Cyclical

—

—

Technology

—

—

Investment

Companies\*

18,654

—

—

18,654

Total

investments

in

securities

$

616,381

$

—

$

1,052

$

617,433

Derivative

Liabilities

Equity

Contracts

Futures\*\*

(38) —

—

(38) LargeCap

S&P

500

Index

Account

Common

Stocks\*

2,362,403

—

—

2,362,403

Investment

Companies\*

30,666

—

—

30,666

Total

investments

in

securities

$

2,393,069

$

—

$

—

$

2,393,069

Derivative

Liabilities

Equity

Contracts

Futures\*\*

(107) —

—

(107) LargeCap

S&P

500

Managed

Volatility

Index

Account

Common

Stocks\*

112,130

—

—

112,130

Investment

Companies\*

6,228

—

—

6,228

Total

investments

in

securities

$

118,358

$

—

$

—

$

118,358

Derivative

Liabilities

Equity

Contracts

Futures\*\*

(7) —

—

(7) MidCap

Account

Common

Stocks

Basic

Materials

10,133

—

—

10,133

Communications

13,800

—

—

13,800

Consumer,

Cyclical

138,968

—

—

138,968

Consumer,

Non-cyclical

22,943

—

—

22,943

Financial

162,857

—

—

162,857

Industrial

133,299

—

—

133,299

Technology

73,779

—

—

73,779

Utilities

24,176

—

—

24,176

Investment

Companies\*

4,004

—

—

4,004

Total

investments

in

securities

$

583,959

$

—

$

—

$

583,959

Principal

Capital

Appreciation

Account

Common

Stocks\*

244,154

—

—

244,154

Investment

Companies\*

2,115

—

—

2,115

Total

investments

in

securities

$

246,269

$

—

$

—

$

246,269

Principal

LifeTime

2020

Account

Investment

Companies\*

139,575

—

—

139,575

Total

investments

in

securities

$

139,575

$

—

$

—

$

139,575

Principal

LifeTime

2030

Account

Investment

Companies\*

332,251

—

—

332,251

Total

investments

in

securities

$

332,251

$

—

$

—

$

332,251

4. Fair

Valuation

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

Fund

Level

-

Quoted

Prices

Level

-

Other

Significant

Observable

Inputs

Level

-

Significant

Unobservable

Inputs

Totals

(Level

1,2,3)

Principal

LifeTime

2040

Account

Investment

Companies\*

$

229,310

$

—

$

—

$

229,310

Total

investments

in

securities

$

229,310

$

—

$

—

$

229,310

Principal

LifeTime

2050

Account

Investment

Companies\*

100,540

—

—

100,540

Total

investments

in

securities

$

100,540

$

—

$

—

$

100,540

Principal

LifeTime

2060

Account

Investment

Companies\*

40,423

—

—

40,423

Total

investments

in

securities

$

40,423

$

—

$

—

$

40,423

Principal

LifeTime

Strategic

Income

Account

Investment

Companies\*

54,552

—

—

54,552

Total

investments

in

securities

$

54,552

$

—

$

—

$

54,552

Real

Estate

Securities

Account

Common

Stocks\*

245,659

—

—

245,659

Investment

Companies\*

1,413

—

—

1,413

Total

investments

in

securities

$

247,072

$

—

$

—

$

247,072

SAM

Balanced

Portfolio

Investment

Companies\*

561,392

—

—

561,392

Total

investments

in

securities

$

561,392

$

—

$

—

$

561,392

Derivative

Assets

Interest

Rate

Contracts

Futures\*\*

—

—

Derivative

Liabilities

Interest

Rate

Contracts

Futures\*\*

(45) —

—

(45) SAM

Conservative

Balanced

Portfolio

Investment

Companies\*

161,395

—

—

161,395

Total

investments

in

securities

$

161,395

$

—

$

—

$

161,395

Derivative

Assets

Interest

Rate

Contracts

Futures\*\*

—

—

Derivative

Liabilities

Interest

Rate

Contracts

Futures\*\*

(34) —

—

(34) SAM

Conservative

Growth

Portfolio

Investment

Companies\*

427,280

—

—

427,280

Total

investments

in

securities

$

427,280

$

—

$

—

$

427,280

SAM

Flexible

Income

Portfolio

Investment

Companies\*

115,749

—

—

115,749

Total

investments

in

securities

$

115,749

$

—

$

—

$

115,749

Derivative

Assets

Interest

Rate

Contracts

Futures\*\*

—

—

Derivative

Liabilities

Interest

Rate

Contracts

Futures\*\*

(36) —

—

(36) SAM

Strategic

Growth

Portfolio

Investment

Companies\*

491,924

—

—

491,924

Total

investments

in

securities

$

491,924

$

—

$

—

$

491,924

4. Fair

Valuation

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

\*For

additional

detail

regarding

sector

and/or

sub-industry

classifications,

please

see

the

schedules

of

investments.

\*\*Exchange

cleared

swaps

and

futures

are

presented

at

the

unrealized

appreciation/(depreciation)

of

the

instrument.

At

the

end

of

the

year,

there

were

no Funds

which

had

a

significant

Level

balance.

During

the

year,

there

were

no

significant

purchases,

sales,

or

transfers

into

or

out

of

Level

3. 5. Management

Agreement

and

Transactions

with

Affiliates

Management

Services.

The

Funds

have

agreed

to

pay

management

and

investment

advisory

fees

to

the

Manager

computed

at

an

annual

percentage

rate

of

each

of

the

Fund's

average

daily

net

assets.

A

portion

of

the

management

fee

is

paid

by

the

Manager

to

the

sub-advisor

of

each

of

the

Funds,

some

of

which

are

affiliates

of

the

Manager.

The

annual

rate

paid

by

the

SAM

Portfolios

is

based

upon

the

aggregate

average

daily

net

assets

("aggregate

net

assets")

of

the

SAM

Portfolios.

The

management

and

investment

advisory

fees

schedule

for

the

SAM

Portfolios

is

Fund

Level

-

Quoted

Prices

Level

-

Other

Significant

Observable

Inputs

Level

-

Significant

Unobservable

Inputs

Totals

(Level

1,2,3)

Short-Term

Income

Account

Bonds\*

$

—

$

106,743

$

—

$

106,743

Investment

Companies\*

6,034

—

—

6,034

U.S.

Government

&

Government

Agency

Obligations\*

—

20,650

—

20,650

Total

investments

in

securities

$

6,034

$

127,393

$

—

$

133,427

Derivative

Assets

Interest

Rate

Contracts

Futures\*\*

—

—

Derivative

Liabilities

Interest

Rate

Contracts

Futures\*\*

(4) —

—

(4) SmallCap

Account

Common

Stocks\*

176,344

—

—

176,344

Investment

Companies\*

3,620

—

—

3,620

Total

investments

in

securities

$

179,964

$

—

$

—

$

179,964

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account

Investment

Companies\*

29,730

—

—

29,730

Purchased

Options

—

5,463

—

5,463

Total

investments

in

securities

$

29,730

$

5,463

$

—

$

35,193

Derivative

Liabilities

Equity

Contracts

Written

Options

—

(1,298)

—

(1,298)

U.S.

LargeCap

S&P

500

Index

Buffer

January

Account

Investment

Companies\*

23,551

—

—

23,551

Purchased

Options

—

4,473

—

4,473

Total

investments

in

securities

$

23,551

$

4,473

$

—

$

28,024

Derivative

Liabilities

Equity

Contracts

Written

Options

—

(1,113)

—

(1,113)

U.S.

LargeCap

S&P

500

Index

Buffer

July

Account

Investment

Companies\*

39,995

—

—

39,995

Purchased

Options

—

6,756

—

6,756

Total

investments

in

securities

$

39,995

$

6,756

$

—

$

46,751

Derivative

Liabilities

Equity

Contracts

Written

Options

—

(1,132)

—

(1,132)

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account

Investment

Companies\*

108,333

—

—

108,333

Purchased

Options

—

18,628

—

18,628

Total

investments

in

securities

$

108,333

$

18,628

$

—

$

126,961

Derivative

Liabilities

Equity

Contracts

Written

Options

—

(3,789)

—

(3,789)

4. Fair

Valuation

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

.25%

of

aggregate

net

assets

up

to

the

first

$1

billion

and

.20%

of

aggregate

net

assets

over

$1

billion.

The

Principal

LifeTime

Funds

do

not

pay

management

and

investment

advisory

fees.

The

annual

rates

used

in

this

calculation

for

each

of

the

other

Funds

are

as

follows:

The

Manager

has

contractually

agreed

to

waive

certain

of

the

Funds'

management

and

investment

advisory

fees.

The

expense

waiver

will

reduce

the fund's

management

and

investment

advisory

fees.

The

waivers

are

expressed

as

a

percentage

of

average

daily

net

assets

on

an

annualized

basis

during

the

reporting

period.

The

waivers

are

as

follows:

The

Manager

has

contractually

agreed

to

limit

the

expenses

(excluding

interest

expense,

expenses

related

to fund

investments,

acquired

fund

fees

and

expenses,

and

tax

reclaim

recovery

expenses

and

other

extraordinary

expenses)

for

certain

classes

of

shares

of

certain

of

the

Funds.

The

reductions

and

reimbursements

are

in

amounts

that

maintain

total

operating

expenses

at

or

below

certain

limits.

The

limits

are

expressed

as

a

percentage

of

average

daily

net

assets

attributable

to

each

class

of

shares

on

an

annualized

basis

during

the

reporting

period.

The

expenses

borne

Net

Assets

of

Fund

(in

millions)

First

$100

Next

$100

Next

$100

Next

$100

Thereafter

Core

Plus

Bond

Account

.50%

.45%

.40%

.35%

.30%

Government

&

High

Quality

Bond

Account

.48

.47

.46

.45

.44

LargeCap

Growth

Account

I

.80

.75

.70

.65

.60

Real

Estate

Securities

Account

.79

.77

.73

.70

.68

SmallCap

Account

.85

.80

.75

.70

.65

Net

Assets

of

Fund

(in

millions)

First

$100

Next

$100

Next

$100

Next

$100

Next

$300

Next

$300

Thereafter

Equity

Income

Account

.60%

.55%

.50%

.45%

.40%

.39%

.38%

MidCap

Account

.65

.60

.55

.50

.45

.44

.43

Net

Assets

of

Fund

(in

millions)

First

$250

Next

$250

Next

$250

Next

$250

Thereafter

Diversified

International

Account

.81%

.78%

.75%

.70%

.65%

Global

Emerging

Markets

Account

1.00 .98

.96

.95

.90

Net

Assets

of

Fund

(in

millions)

First

$500

Over

$500

Blue

Chip

Account

.60%

.55%

Principal

Capital

Appreciation

Account

.625

.500

Short-Term

Income

Account

.40

.39

Net

Assets

of

Fund

(in

billions)

First

$3

Over

$3

Diversified

Growth

Account

.05%

.04%

LargeCap

S&P

500

Index

Account

.19

.15

Net

Assets

of

Fund

(in

billions)

First

$3

Next

$3

Over

$6

Bond

Market

Index

Account

.14%

.12%

.10%

All

Net

Assets

Diversified

Balanced

Account

.05%

Diversified

Balanced

Adaptive

Allocation

Account

.12

Diversified

Balanced

Strategic

Allocation

Account

.05

Diversified

Growth

Adaptive

Allocation

Account

.12

Diversified

Growth

Strategic

Allocation

Account

.05

Diversified

Income

Account

.05

LargeCap

S&P

500

Managed

Volatility

Index

Account

.35

U.S.

LargeCap

Buffer

January

Account

.69

U.S.

LargeCap

Buffer

April

Account

.69

U.S.

LargeCap

Buffer

July

Account

.69

U.S.

LargeCap

Buffer

October

Account

.69

Period

from

January

1,

2025

through

December

31,

2025

Expiration

LargeCap

Growth

Account

I

.016%

April

30,

2026

5. Management

Agreement

and

Transactions

with

Affiliates

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

by

the

Manager

are

subject

to

reimbursement

by

the

Funds

through

the

fiscal

year

end,

provided

no

reimbursement

will

be

made

if

it

would

result

in

the

Funds

exceeding

the

total

operating

expense

limits.

Any

amounts

outstanding

at

the

end

of

the

year

are

shown

as

an

expense

reimbursement

from

Manager

or

expense

reimbursement

to

Manager

on

the

statements

of

assets

and

liabilities.

The

operating

expense

limits are

as

follows:

\*

Prior

to

May

1,

2025,

there

was

no

contractual

limit.

#

Class

shares

discontinued

operations

and

converted

to

Class

shares

on

May

1,

2025. Distribution

Fees.

Class

and

Class

shares

of

the

Funds

bear

distribution

fees.

The

fee

is

computed

at

an

annual

rate

of

the

average

daily

net

assets

attributable

to

Class

and

Class

shares

of

each

of

the

Funds.

Distribution

fees

are

paid

to

Principal

Funds

Distributor,

Inc.

(an

affiliate

of

the

Manager),

the

principal

distributor

of

the

Funds.

A

portion

of

the

distribution

fees

may

be

paid

to

other

selling

dealers

for

providing

certain

services.

The

annual

distribution

fee

rate

is

.25%.

Class

shares

discontinued

operations

and

converted

to

Class

shares

on

May

1,

2025. Administrative

Service

Fees.

Class

shares

of

the

Funds

bear

administrative

service

fees.

The

fee

is

computed

at

an

annual

rate

of

the

average

daily

net

assets

attributable

to

Class

shares

of

each

of

the

Funds.

Administration

service

fees

are

paid

to

Principal

Shareholder

Services,

Inc.

(an

affiliate

of

the

Manager),

the

principal

administrator

of

the

Funds.

The

annual

administrative

service

fee

rate

is

.15%.

Class

shares

discontinued

operations

and

converted

to

Class

shares

on

May

1,

2025. Chief

Compliance

Officer

Expenses.

The

Funds

pay

certain

expenses

associated

with

the

Chief

Compliance

Officer

("CCO").

This

expense

is

allocated

among

the

registered

investment

companies

managed

by

the

Manager

based

on

the

relative

net

assets

of

each

fund

and

is

shown

on

the

statements

of

operations.

Affiliated

Ownership.

At

December

31,

2025,

the

Manager,

Principal National

Life

Insurance

Company

(an

affiliate

of

the

Manager), Principal

Life

Insurance

Company

(an

affiliate

of

the

Manager),

and/or

one

or

more

separate

accounts

sponsored

by

Principal

Life

Insurance

Company

owned

shares

of

the

Funds as

follows

(amounts

in

thousands):

Period

from

January

1,

2025

through

December

31,

2025

Class

Class

Class

Expiration

Blue

Chip

Account

N/A

.90%\*

1.05%#

April

30,

2026

Diversified

Balanced

Account

N/A

N/A

.48#

April

30,

2025

Diversified

Balanced

Adaptive

Allocation

Account

N/A

N/A

.55#

April

30,

2025

Diversified

Balanced

Strategic

Allocation

Account

N/A

.31

.48#

April

30,

2026

Diversified

Growth

Account

N/A

N/A

.48#

April

30,

2025

Diversified

Growth

Adaptive

Allocation

Account

N/A

N/A

.55#

April

30,

2025

Diversified

Growth

Strategic

Allocation

Account

N/A

N/A

.48#

April

30,

2025

Diversified

Income

Account

N/A

N/A

.48#

April

30,

2025

Equity

Income

Account

N/A

N/A

.91#

April

30,

2025

LargeCap

Growth

Account

I

.69

N/A

N/A

April

30,

2025

U.S.

LargeCap

Buffer

January

Account

N/A

.95

N/A

April

30,

2026

U.S.

LargeCap

Buffer

April

Account

N/A

.95

N/A

April

30,

2026

U.S.

LargeCap

Buffer

July

Account

N/A

.95

N/A

April

30,

2026

U.S.

LargeCap

Buffer

October

Account

N/A

.95

N/A

April

30,

2026

Class

Class

Blue

Chip

Account

N/A

1,362

Bond

Market

Index

Account

5,466

N/A

Core

Plus

Bond

Account

24,842

N/A

Diversified

Balanced

Account

2,423

32,509

Diversified

Balanced

Adaptive

Allocation

Account

N/A

18,159

Diversified

Balanced

Strategic

Allocation

Account

N/A

7,237

Diversified

Growth

Account

N/A

107,910

Diversified

Growth

Adaptive

Allocation

Account

N/A

111,359

Diversified

Growth

Strategic

Allocation

Account

N/A

14,793

Diversified

Income

Account

N/A

13,686

Diversified

International

Account

13,095

N/A

Equity

Income

Account

10,771

650

Global

Emerging

Markets

Account

3,943

N/A

Government

&

High

Quality

Bond

Account

10,374

N/A

LargeCap

Growth

Account

I

13,240

N/A

LargeCap

S&P

500

Index

Account

35,431

3,256

MidCap

Account

8,272

Principal

Capital

Appreciation

Account

2,787

Principal

LifeTime

2020

Account

10,443

N/A

Principal

LifeTime

2030

Account

23,001

N/A

Principal

LifeTime

2040

Account

11,804

N/A

5. Management

Agreement

and

Transactions

with

Affiliates

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

6. Capital

Share

Transactions

The

conversion

of

Class

shares

into

Class

shares

during

the

period

ended

December

31,

2025

resulted

in

the

following

capital

shares

transactions

(amounts

in

thousands):

7. Investment

Transactions

For

the year ended

December

31,

2025,

the

cost

of

investment

securities

purchased

and

proceeds

from

investment

securities

sold

(not

including

short-term

investments,

return

of

capital,

and

U.S.

government

securities)

by

the

Funds

were

as

follows

(amounts

in

thousands):

Class

Class

Principal

LifeTime

2050

Account

5,212

N/A

Principal

LifeTime

2060

Account

2,122

N/A

Principal

LifeTime

Strategic

Income

Account

4,568

N/A

Real

Estate

Securities

Account

6,325

509

SAM

Balanced

Portfolio

24,374

2,616

SAM

Conservative

Balanced

Portfolio

10,007

1,387

SAM

Conservative

Growth

Portfolio

8,322

1,156

SAM

Flexible

Income

Portfolio

6,977

1,976

SAM

Strategic

Growth

Portfolio

8,199

1,040

Short-Term

Income

Account

51,223

N/A

SmallCap

Account

9,501

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account

N/A

2,946

U.S.

LargeCap

S&P

500

Index

Buffer

January

Account

N/A

5,853

U.S.

LargeCap

S&P

500

Index

Buffer

July

Account

N/A

3,184

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account

N/A

6,264

Class

Shares

Redeemed

Class

Dollars

Redeemed

Class

Shares

Sold

Class

Dollars

Sold

Blue

Chip

Account

1,666

$24,517

1,666

$24,517

Diversified

Balanced

Adaptive

Allocation

Account

Diversified

Balanced

Strategic

Allocation

Account

Diversified

Growth

Adaptive

Allocation

Account

Diversified

Growth

Strategic

Allocation

Account

Equity

Income

Account

2,171

2,171

Purchases

Sales

Blue

Chip

Account

$

9,508

$

11,019

Bond

Market

Index

Account

327,481

559,896

Core

Plus

Bond

Account

261,507

240,393

Diversified

Balanced

Account

106,021

,

Diversified

Balanced

Adaptive

Allocation

Account

89,070

113,045

Diversified

Balanced

Strategic

Allocation

Account

20,357

,

Diversified

Growth

Account

411,230

998

,

633

Diversified

Growth

Adaptive

Allocation

Account

635,255

773,229

Diversified

Growth

Strategic

Allocation

Account

48,677

,

Diversified

Income

Account

40,346

,

Diversified

International

Account

88,786

148,263

Equity

Income

Account

86,762

184,666

Global

Emerging

Markets

Account

37,257

43,151

Government

&

High

Quality

Bond

Account

135,787

149,491

LargeCap

Growth

Account

I

304,640

397,730

LargeCap

S&P

500

Index

Account

83,976

630,769

LargeCap

S&P

500

Managed

Volatility

Index

Account

27,743

70,164

MidCap

Account

96,499

220,294

Principal

Capital

Appreciation

Account

133,616

136,915

Principal

LifeTime

2020

Account

54,834

68,714

Principal

LifeTime

2030

Account

150,334

135,890

Principal

LifeTime

2040

Account

132,515

94,798

Principal

LifeTime

2050

Account

62,277

52,497

Principal

LifeTime

2060

Account

28,616

20,746

Principal

LifeTime

Strategic

Income

Account

20,858

22,482

Real

Estate

Securities

Account

52,760

52,142

SAM

Balanced

Portfolio

272,329

346,231

SAM

Conservative

Balanced

Portfolio

63,356

81,867

SAM

Conservative

Growth

Portfolio

193,427

208,111

SAM

Flexible

Income

Portfolio

32,457

56,897

5. Management

Agreement

and

Transactions

with

Affiliates

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

During

the

year

ended

December

31,

2025,

Principal

Lifetime

Funds

and

SAM

Portfolios

had

in-kind

purchases

and

sales

included

in

the

purchases

and

sales

above

from

a

fund

affiliated

with

the

Manager

as

follows

(amounts

in

thousands):

For

the year

ended

December

31,

2025,

the

cost

of

U.S.

government

securities

purchased

and

proceeds

from

U.S.

government

securities

sold

(not

including

short-term

investments)

by

the

Funds

were

as

follows

(amounts

in

thousands):

8. Federal

Tax

Information

Distributions

to

Shareholders.

The

federal

income

tax

character

of

distributions

paid

for

the years

ended December

31,

2025 and

December

31,

2024 were

as

follows

(amounts

in

thousands):

Purchases

Sales

SAM

Strategic

Growth

Portfolio

$

230,381

$

230,412

Short-Term

Income

Account

33,528

52,251

SmallCap

Account

61,717

79,490

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account

8,434

18,965

U.S.

LargeCap

S&P

500

Index

Buffer

January

Account

48,009

56,574

U.S.

LargeCap

S&P

500

Index

Buffer

July

Account

64,035

72,820

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account

75,929

55,682

Purchases

Sales

SAM

Balanced

Portfolio

$

20,428

$

—

SAM

Conservative

Balanced

Portfolio

3,724

—

SAM

Conservative

Growth

Portfolio

16,416

—

SAM

Flexible

Income

Portfolio

2,914

—

SAM

Strategic

Growth

Portfolio

25,748

—

Principal

LifeTime

2020

Account

13,903

—

Principal

LifeTime

2030

Account

40,163

—

Principal

LifeTime

2040

Account

32,970

—

Principal

LifeTime

2050

Account

18,239

—

Principal

LifeTime

2060

Account

6,522

—

Principal

LifeTime

Strategic

Income

Account

4,232

—

Purchases

Sales

Bond

Market

Index

Account

$

436,298

$

634,860

Core

Plus

Bond

Account

147,793

132,687

Government

&

High

Quality

Bond

Account

155,078

163,140

Short-Term

Income

Account

26,152

7,896

Ordinary

Income

Long-Term

Capital

Gain\*

2025

2024

2025

2024

Bond

Market

Index

Account

$

79,109

$

71,809

$

—

$

—

Core

Plus

Bond

Account

8,750

6,636

—

—

Diversified

Balanced

Account

15,789

15,468

60,797

17,859

Diversified

Balanced

Adaptive

Allocation

Account

7,883

4,594

12,875

2,330

Diversified

Balanced

Strategic

Allocation

Account

2,991

2,564

7,310

2,931

Diversified

Growth

Account

57,237

66,307

317,148

68,231

Diversified

Growth

Adaptive

Allocation

Account

44,452

28,994

88,484

19,175

Diversified

Growth

Strategic

Allocation

Account

6,286

5,335

19,631

8,501

Diversified

Income

Account

5,723

5,674

9,388

3,707

Diversified

International

Account

6,136

8,034

15,690

—

Equity

Income

Account

14,194

14,405

65,280

6,720

Global

Emerging

Markets

Account

1,362

826

—

Government

&

High

Quality

Bond

Account

3,876

3,581

—

—

LargeCap

Growth

Account

I

1,574

93,213

29,157

LargeCap

S&P

500

Index

Account

38,139

43,127

413,121

161,782

LargeCap

S&P

500

Managed

Volatility

Index

Account

2,029

2,622

27,914

16,065

MidCap

Account

1,762

1,464

77,073

54,930

Principal

Capital

Appreciation

Account

3,520

1,951

16,024

5,877

Principal

LifeTime

2020

Account

4,350

4,259

5,546

1,759

Principal

LifeTime

2030

Account

7,877

6,402

14,317

2,962

Principal

LifeTime

2040

Account

3,598

2,914

10,548

2,151

Principal

LifeTime

2050

Account

1,456

1,211

5,708

1,159

Principal

LifeTime

2060

Account

545

1,793

Principal

LifeTime

Strategic

Income

Account

1,675

1,423

1,333

7. Investment

Transactions

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

\*The

Funds

designate

these

distributions

as

long-term

capital

gain

dividends

per

Internal

Revenue

Code

Sec.

852

(b)(3)(C)

in

the

20-percent

group

(which

may

be

taxed

at

a

20-percent

rate,

a

15-percent

rate

or

a

0-percent

rate,

depending

on

the

shareholder's

taxable

income).

Certain

Funds

may

also

utilize

earnings

and

profits

distributed

to

shareholders

on

redemptions

of

shares

as

part

of

the

dividends

paid

deduction.

For

U.S.

federal

income

tax

purposes,

short-term

capital

gain

distributions

are

considered

ordinary

income

distributions.

Distributable

Earnings.

As

of December

31,

2025,

the

components

of

total

distributable

earnings

(accumulated

loss)

on

a

federal

tax

basis

were

as

follows

(amounts

in

thousands):

Ordinary

Income

Long-Term

Capital

Gain\*

2025

2024

2025

2024

Real

Estate

Securities

Account

$

4,375

$

3,490

$

8,549

$

4,526

SAM

Balanced

Portfolio

14,399

11,726

39,891

—

SAM

Conservative

Balanced

Portfolio

4,418

4,161

3,605

—

SAM

Conservative

Growth

Portfolio

6,629

5,689

28,850

—

SAM

Flexible

Income

Portfolio

4,088

3,952

—

—

SAM

Strategic

Growth

Portfolio

5,886

4,374

34,541

—

Short-Term

Income

Account

5,551

4,673

—

—

SmallCap

Account

2,973

745

6,149

3,292

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account

741

4,354

—

—

U.S.

LargeCap

S&P

500

Index

Buffer

January

Account

6,592

—

—

U.S.

LargeCap

S&P

500

Index

Buffer

July

Account

9,167

864

—

—

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account

511

4,162

—

Undistributed

Ordinary

Income

Undistributed

Long-Term

Capital

Gains

Accumulated

Losses

Net

Unrealized

Appreciation

(Depreciation)

Other

Temporary

Differences

\*

Total

Accumulated

Earnings

(Deficit)

Blue

Chip

Account

$

—

$

2,681

$

—

$

5,148

$

—

$

7,829

Bond

Market

Index

Account

69,797

—

(193,450)

(102,166)

—

(225,819)

Core

Plus

Bond

Account

10,212

—

(30,792)

(2,866)

(23,430)

Diversified

Balanced

Account

14,906

49,071

—

116,542

—

180,519

Diversified

Balanced

Adaptive

Allocation

Account

5,950

1,872

—

7,496

(64) 15,254

Diversified

Balanced

Strategic

Allocation

Account

2,559

8,239

—

7,587

—

18,385

Diversified

Growth

Account

47,732

242,862

—

568,740

—

859,334

Diversified

Growth

Adaptive

Allocation

Account

34,668

21,279

—

127,151

(755) 182,343

Diversified

Growth

Strategic

Allocation

Account

5,324

24,479

—

28,389

—

58,192

Diversified

Income

Account

5,946

9,071

—

14,713

—

29,730

Diversified

International

Account

6,058

28,444

—

72,249

—

106,751

Equity

Income

Account

13,403

31,654

—

379,527

—

424,584

Global

Emerging

Markets

Account

2,334

5,489

—

21,298

—

29,121

Government

&

High

Quality

Bond

Account

4,147

—

(29,661)

(2,954)

—

(28,468)

LargeCap

Growth

Account

I

13,093

82,554

—

173,896

—

269,543

LargeCap

S&P

500

Index

Account

31,374

290,073

—

1,326,009

(19) 1,647,437

LargeCap

S&P

500

Managed

Volatility

Index

Account

2,041

18,646

—

60,500

(5,104)

76,083

MidCap

Account

—

87,982

—

173,043

—

261,025

Principal

Capital

Appreciation

Account

644

17,272

—

124,527

—

142,443

Principal

LifeTime

2020

Account

5,068

5,280

—

5,512

—

15,860

Principal

LifeTime

2030

Account

10,921

13,002

—

25,946

—

49,869

Principal

LifeTime

2040

Account

6,557

9,657

—

25,329

—

41,543

Principal

LifeTime

2050

Account

2,712

4,919

—

14,113

—

21,744

Principal

LifeTime

2060

Account

981

1,755

—

4,073

—

6,809

Principal

LifeTime

Strategic

Income

Account

1,955

1,507

—

(4) —

3,458

Real

Estate

Securities

Account

5,707

—

(2,635)

9,030

—

12,102

SAM

Balanced

Portfolio

18,425

41,765

—

102,518

—

162,708

SAM

Conservative

Balanced

Portfolio

5,358

7,794

—

18,045

—

31,197

SAM

Conservative

Growth

Portfolio

11,083

44,437

—

91,250

—

146,770

SAM

Flexible

Income

Portfolio

3,607

—

(1,019)

6,764

—

9,352

SAM

Strategic

Growth

Portfolio

8,277

46,770

—

113,742

—

168,789

Short-Term

Income

Account

5,197

—

(2,225)

—

3,334

SmallCap

Account

11,881

—

44,762

—

57,114

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account

1,127

—

—

6,691

(448) 7,370

U.S.

LargeCap

S&P

500

Index

Buffer

January

Account

5,156

—

—

2,739

(929) 6,966

U.S.

LargeCap

S&P

500

Index

Buffer

July

Account

7,143

—

—

3,444

—

10,587

8. Federal

Tax

Information

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

\*Represents

book-to-tax

accounting

differences.

Capital

Loss

Carryforwards.

For

federal

income

tax

purposes,

capital

loss

carryforwards

are

losses

that

can

be

used

to

offset

future

capital

gains

of

the

Funds.

As

of

December

31,

2025,

the

Funds

had

approximate

net

capital

loss

carryforwards

as

follows

(amounts

in

thousands):

All

of

these

capital

losses

were

generated

in

taxable

years

beginning

after

the

enactment

date

of

the

Regulated

Investment

Company

Modernization

Act

of

2010

on

December

22,

2010,

and

will

be

carried

forward

with

no

expiration

and

with

the

character

of

the

loss

retained.

For

the

year

ended

December

31,

2025,

the

Funds

utilized

capital

loss

carryforwards

as

follows

(amounts

in

thousands):

Late-Year

Losses.

A

regulated

investment

company

may

elect

to

treat

any

portion

of

its

qualified

late-year

loss

as

arising

on

the

first

day

of

the

next

taxable

year.

Qualified

late-year

losses

are

certain

capital

and

ordinary

losses

which

occur

during

the

portion

of

the fund's

taxable

year

subsequent

to

October 31.

For

the

taxable

year

ended

December

31,

2025

,

the Funds

do

not

plan

to

defer

any

late-year

losses.

Reclassification

of

Capital

Accounts.

The

Funds

may

record

reclassifications

in

their

capital

accounts.

These

reclassifications

have

no

impact

on

the

total

net

assets

of

the

Funds.

The

reclassifications

are

a

result

of

permanent

differences

between

U.S.

GAAP

and

tax

accounting.

Adjustments

are

made

to

reflect

the

impact

these

items

have

on

current

and

future

distributions

to

shareholders.

Therefore,

the

source

of

the

Funds'

distributions

may

be

shown

in

the

accompanying

statements

of

changes

in

net

assets

as

from

net

investment

income

and net

realized

gain

on

investments

or

from

tax

return

of

capital

depending

on

the

type

of

book

and

tax

differences

that

exist.

For

the

year

ended December

31,

2025,

the

Funds

recorded

reclassifications

as

follows

(amounts

in

thousands):

Undistributed

Ordinary

Income

Undistributed

Long-Term

Capital

Gains

Accumulated

Losses

Net

Unrealized

Appreciation

(Depreciation)

Other

Temporary

Differences

\*

Total

Accumulated

Earnings

(Deficit)

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account

$

5,169

$

—

$

—

$

6,637

$

(1,506)

$

10,300

Short-Term

Long-Term

Total

Bond

Market

Index

Account

$

31,657

$

161,793

$

193,450

Core

Plus

Bond

Account

8,419

22,373

30,792

Government

&

High

Quality

Bond

Account

8,391

21,270

29,661

Real

Estate

Securities

Account

2,635

—

2,635

SAM

Flexible

Income

Portfolio

1,019

—

1,019

Short-Term

Income

Account

1,158

1,067

2,225

Short-Term

Utilized

Long-Term

Utilized

Blue

Chip

Account

$

$

—

Bond

Market

Index

Account

1,551

—

Core

Plus

Bond

Account

—

Government

&

High

Quality

Bond

Account

—

SAM

Flexible

Income

Portfolio

719

2,336

Short-Term

Income

Account

—

Total

Distributable

Earnings

(Accumulated

Loss)

Capital

Shares

and

Additional

Paid-in-Capital

Blue

Chip

Account

$

(59) $

Diversified

Balanced

Account

(19,468)

19,468

Diversified

Balanced

Strategic

Allocation

Account

(3,000)

3,000

Diversified

Growth

Account

(109,815)

109,815

Diversified

Growth

Strategic

Allocation

Account

(7,540)

7,540

Diversified

Income

Account

(3,875)

3,875

Diversified

International

Account

(4,983)

4,983

Equity

Income

Account

(12,820)

12,820

Global

Emerging

Markets

Account

(678) 678

LargeCap

Growth

Account

I

(19,260)

19,260

LargeCap

S&P

500

Index

Account

(115,704)

115,704

LargeCap

S&P

500

Managed

Volatility

Index

Account

(8,586)

8,586

MidCap

Account

(18,867)

18,867

Principal

Capital

Appreciation

Account

(2,515)

2,515

Principal

LifeTime

2020

Account

(1,699)

1,699

Principal

LifeTime

2030

Account

(2,812)

2,812

Principal

LifeTime

2040

Account

(1,171)

1,171

Principal

LifeTime

2050

Account

(790) 790

Principal

LifeTime

2060

Account

(346) 346

8. Federal

Tax

Information

(continued)

Notes

to

Financial

Statements

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

Federal

Income

Tax

Basis.

As

of December

31,

2025,

the

net

federal

income

tax

unrealized

appreciation

(depreciation)

and

federal

tax

cost

of

investments

held

by

the

Funds

were

as

follows

(amounts

in

thousands):

9. Subsequent

Events

Management

has

evaluated

events

and

transactions

that

have

occurred

through

the

date

the

financial

statements

were issued

that

would

merit

recognition

or

disclosure

in

the

financial

statements.

There

were

no

items

requiring

adjustment

of

the

financial

statements

or

additional

disclosure.

Total

Distributable

Earnings

(Accumulated

Loss)

Capital

Shares

and

Additional

Paid-in-Capital

SAM

Balanced

Portfolio

$

(9,321)

$

9,321

SAM

Conservative

Balanced

Portfolio

(1,809)

1,809

SAM

Conservative

Growth

Portfolio

(4,495)

4,495

SAM

Strategic

Growth

Portfolio

(4,523)

4,523

SmallCap

Account

(1,405)

1,405

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account

(1,108)

1,108

U.S.

LargeCap

S&P

500

Index

Buffer

January

Account

(699) 699

U.S.

LargeCap

S&P

500

Index

Buffer

July

Account

2,077

(2,077)

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account

(132) 132

Unrealized

Appreciation

Unrealized

(Depreciation)

Net

Unrealized

Appreciation/

(Depreciation)

Cost

for

Federal

Income

Tax

Purposes

Blue

Chip

Account

$

5,920

$

(772) $

5,148

$

19,301

Bond

Market

Index

Account

15,909

(118,075)

(102,166)

1,909,370

Core

Plus

Bond

Account

3,465

(6,331)

(2,866)

258,930

Diversified

Balanced

Account

140,291

(23,749)

116,542

387,130

Diversified

Balanced

Adaptive

Allocation

Account

20,772

(13,276)

7,496

209,618

Diversified

Balanced

Strategic

Allocation

Account

12,989

(5,402)

7,587

80,056

Diversified

Growth

Account

647,198

(78,458)

568,740

1,284,577

Diversified

Growth

Adaptive

Allocation

Account

181,714

(54,563)

127,151

1,327,634

Diversified

Growth

Strategic

Allocation

Account

37,265

(8,876)

28,389

167,826

Diversified

Income

Account

29,711

(14,998)

14,713

165,438

Diversified

International

Account

76,720

(4,439)

72,281

186,393

Equity

Income

Account

387,426

(7,899)

379,527

304,035

Global

Emerging

Markets

Account

24,453

(2,861)

21,592

60,242

Government

&

High

Quality

Bond

Account

2,187

(5,141)

(2,954)

116,044

LargeCap

Growth

Account

I

191,207

(17,311)

173,896

443,499

LargeCap

S&P

500

Index

Account

1,393,129

(67,120)

1,326,009

1,066,953

LargeCap

S&P

500

Managed

Volatility

Index

Account

63,889

(3,389)

60,500

57,851

MidCap

Account

194,515

(21,471)

173,044

410,915

Principal

Capital

Appreciation

Account

128,359

(3,832)

124,527

121,742

Principal

LifeTime

2020

Account

14,808

(9,297)

5,511

134,064

Principal

LifeTime

2030

Account

38,969

(13,024)

25,945

306,306

Principal

LifeTime

2040

Account

29,568

(4,239)

25,329

203,981

Principal

LifeTime

2050

Account

15,454

(1,341)

14,113

86,427

Principal

LifeTime

2060

Account

4,729

(656) 4,073

36,350

Principal

LifeTime

Strategic

Income

Account

4,010

(4,014)

(4) 54,556

Real

Estate

Securities

Account

30,065

(21,035)

9,030

238,042

SAM

Balanced

Portfolio

111,906

(9,388)

102,518

458,843

SAM

Conservative

Balanced

Portfolio

23,252

(5,208)

18,044

143,326

SAM

Conservative

Growth

Portfolio

96,783

(5,533)

91,250

336,030

SAM

Flexible

Income

Portfolio

11,338

(4,574)

6,764

108,960

SAM

Strategic

Growth

Portfolio

117,997

(4,255)

113,742

378,182

Short-Term

Income

Account

1,410

(1,048)

133,062

SmallCap

Account

56,711

(11,949)

44,762

135,202

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account

8,490

(1,799)

6,691

27,204

U.S.

LargeCap

S&P

500

Index

Buffer

January

Account

2,794

(55) 2,739

24,172

U.S.

LargeCap

S&P

500

Index

Buffer

July

Account

4,716

(1,272)

3,444

42,175

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account

8,028

(1,391)

6,637

116,535

8. Federal

Tax

Information

(continued)

Schedule

of

Investments

Blue

Chip

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.40

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

.40

%

Principal

Government

Money

Market

Fund

-

Class

3.67%

(a),(b)

97,890

$

TOTAL

INVESTMENT

COMPANIES

$

COMMON

STOCKS

-

.75

%

Shares

Held

Value

(000's)

Aerospace

&

Defense

-

.97

%

HEICO

Corp

-

Class

A

1,583

$

TransDigm

Group

Inc

979

1,302

$

1,702

Building

Materials

-

.88

%

Vulcan

Materials

Co

750

Chemicals

-

.10

%

Linde

PLC

Sherwin-Williams

Co/The

$

Commercial

Services

-

.50

%

Moody's

Corp

Distribution

&

Wholesale

-

.29

%

Copart

Inc

(c) 8,080

Diversified

Financial

Services

-

.02

%

Brookfield

Asset

Management

Ltd

1,423

Charles

Schwab

Corp/The

2,207

Mastercard

Inc

1,957

1,117

Visa

Inc

2,950

1,035

$

2,447

Electronics

-

.07

%

Amphenol

Corp

1,925

Healthcare

-

Products

-

.45

%

Danaher

Corp

3,765

862

IDEXX

Laboratories

Inc

(c) 185

Intuitive

Surgical

Inc

(c) 175

$

1,086

Insurance

-

.71

%

Arthur

J

Gallagher

&

Co

663

Internet

-

.53

%

Airbnb

Inc

(c) 1,839

Alphabet

Inc

-

A

Shares

1,688

528

Alphabet

Inc

-

C

Shares

1,465

Amazon.com

Inc

(c) 12,554

2,898

Meta

Platforms

Inc

1,059

699

Netflix

Inc

(c) 7,088

664

$

5,499

Lodging

-

.54

%

Hilton

Worldwide

Holdings

Inc

1,312

Pharmaceuticals

-

.35

%

Zoetis

Inc

2,623

Private

Equity

-

.11

%

Brookfield

Corp

36,659

1,682

KKR

&

Co

Inc

4,256

543

$

2,225

Real

Estate

-

.48

%

CoStar

Group

Inc

(c) 5,358

Retail

-

.73

%

Costco

Wholesale

Corp

O'Reilly

Automotive

Inc

(c) 2,695

$

Semiconductors

-

.06

%

Broadcom

Inc

2,826

978

NVIDIA

Corp

10,546

1,967

$

2,945

Software

-

.96

%

Cadence

Design

Systems

Inc

(c) 3,071

960

Constellation

Software

Inc/Canada

Microsoft

Corp

7,846

3,793

MSCI

Inc

Roper

Technologies

Inc

788

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Software

(continued)

Veeva

Systems

Inc

(c) 728

$

$

5,606

TOTAL

COMMON

STOCKS

$

24,351

Total

Investments

$

24,449

Other

Assets

and

Liabilities

- (0.15)%

(37)

TOTAL

NET

ASSETS

-

100.00%

$

24,412

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b) 1-day

yield

shown

is

as

of

period

end.

(c) Non-income

producing

security

Schedule

of

Investments

Blue

Chip

Account

December

31,

2025

See

accompanying

notes.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

$

4,677

$

4,972

$

$

$

4,677

$

4,972

$

Income

(a) Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

$

—

$

—

$

—

$

$

—

$

—

$

—

Amounts

in

thousands.

(a) Amount

excludes

earnings

from

securities

lending

collateral.

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.35

%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

.17

%

iShares

Core

U.S.

Aggregate

Bond

ETF

30,000

$

2,996

Money

Market

Funds

-

.18

%

BlackRock

Liquidity

FedFund

-

Institutional

Class

3.64%

(a),(b)

1,591,055

1,591

Principal

Government

Money

Market

Fund

-

Class

3.67%

(a),(b),(c)

19,650,250

19,650

$

21,241

TOTAL

INVESTMENT

COMPANIES

$

24,237

BONDS

-

.04

%

Principal

Amount

(000's)

Value

(000's)

Advertising

-

.02

%

Omnicom

Group

Inc

2.45%,

04/30/2030

$

$

2.60%,

08/01/2031

$

Aerospace

&

Defense

-

.51

%

Boeing

Co/The

2.95%,

02/01/2030

3.25%,

02/01/2028

3.25%,

02/01/2035

3.63%,

02/01/2031

3.75%,

02/01/2050

3.95%,

08/01/2059

5.04%,

05/01/2027

5.15%,

05/01/2030

5.71%,

05/01/2040

5.81%,

05/01/2050

5.88%,

02/15/2040

6.26%,

05/01/2027

6.30%,

05/01/2029

6.53%,

05/01/2034

6.86%,

05/01/2054

General

Dynamics

Corp

3.50%,

04/01/2027

3.75%,

05/15/2028

4.25%,

04/01/2040

4.95%,

08/15/2035

General

Electric

Co

4.90%,

01/29/2036

L3Harris

Technologies

Inc

1.80%,

01/15/2031

2.90%,

12/15/2029

5.05%,

06/01/2029

5.40%,

01/15/2027

5.40%,

07/31/2033

5.50%,

08/15/2054

5.60%,

07/31/2053

Lockheed

Martin

Corp

1.85%,

06/15/2030

3.80%,

03/01/2045

3.90%,

06/15/2032

4.07%,

12/15/2042

4.09%,

09/15/2052

4.15%,

08/15/2028

4.15%,

06/15/2053

4.50%,

02/15/2029

4.70%,

12/15/2031

4.70%,

05/15/2046

4.75%,

02/15/2034

5.00%,

08/15/2035

5.10%,

11/15/2027

5.20%,

02/15/2055

5.20%,

02/15/2064

5.25%,

01/15/2033

5.70%,

11/15/2054

Northrop

Grumman

Corp

3.20%,

02/01/2027

3.85%,

04/15/2045

4.03%,

10/15/2047

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Aerospace

&

Defense

(continued)

Northrop

Grumman

Corp

(continued)

4.65%,

07/15/2030

$

$

4.70%,

03/15/2033

4.90%,

06/01/2034

4.95%,

03/15/2053

RTX

Corp

1.90%,

09/01/2031

2.25%,

07/01/2030

2.38%,

03/15/2032

2.82%,

09/01/2051

3.03%,

03/15/2052

3.50%,

03/15/2027

3.75%,

11/01/2046

4.05%,

05/04/2047

4.13%,

11/16/2028

4.15%,

05/15/2045

4.35%,

04/15/2047

4.50%,

06/01/2042

4.63%,

11/16/2048

5.15%,

02/27/2033

5.38%,

02/27/2053

5.75%,

01/15/2029

6.10%,

03/15/2034

6.40%,

03/15/2054

$

9,242

Agriculture

-

.33

%

Altria

Group

Inc

2.45%,

02/04/2032

3.40%,

05/06/2030

3.70%,

02/04/2051

3.88%,

09/16/2046

4.00%,

02/04/2061

(d) 190

4.80%,

02/14/2029

4.88%,

02/04/2028

5.25%,

08/06/2035

5.80%,

02/14/2039

Archer-Daniels-Midland

Co

2.70%,

09/15/2051

2.90%,

03/01/2032

4.50%,

08/15/2033

BAT

Capital

Corp

2.26%,

03/25/2028

2.73%,

03/25/2031

3.46%,

09/06/2029

3.56%,

08/15/2027

3.98%,

09/25/2050

4.54%,

08/15/2047

4.63%,

03/22/2033

5.63%,

08/15/2035

5.83%,

02/20/2031

6.42%,

08/02/2033

7.08%,

08/02/2043

7.08%,

08/02/2053

BAT

International

Finance

PLC

5.93%,

02/02/2029

Bunge

Ltd

Finance

Corp

2.75%,

05/14/2031

5.15%,

08/04/2035

Philip

Morris

International

Inc

1.75%,

11/01/2030

4.13%,

04/28/2028

4.13%,

03/04/2043

4.25%,

11/10/2044

4.38%,

11/15/2041

4.50%,

03/20/2042

4.63%,

11/01/2029

4.88%,

02/15/2028

4.88%,

02/13/2029

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Agriculture

(continued)

Philip

Morris

International

Inc

(continued)

4.88%,

11/15/2043

$

$

4.90%,

11/01/2034

5.13%,

11/17/2027

5.25%,

02/13/2034

5.38%,

02/15/2033

5.50%,

09/07/2030

5.63%,

11/17/2029

5.75%,

11/17/2032

Reynolds

American

Inc

5.70%,

08/15/2035

5.85%,

08/15/2045

$

5,893

Airlines

-

.03

%

American

Airlines

2019-1

Class

AA

Pass

Through

Trust

3.15%,

08/15/2033

Delta

Air

Lines

2020-1

Class

AA

Pass

Through

Trust

2.00%,

06/10/2028

Delta

Air

Lines

Inc

4.95%,

07/10/2028

United

Airlines

2019-2

Class

AA

Pass

Through

Trust

2.70%,

11/01/2033

$

Apparel

-

.04

%

NIKE

Inc

2.75%,

03/27/2027

3.25%,

03/27/2040

3.38%,

11/01/2046

3.63%,

05/01/2043

$

708

Automobile

Manufacturers

-

.66

%

American

Honda

Finance

Corp

2.25%,

01/12/2029

4.50%,

09/04/2030

4.55%,

03/03/2028

4.60%,

04/17/2030

4.70%,

01/12/2028

4.90%,

01/10/2034

5.05%,

07/10/2031

5.15%,

07/09/2032

5.65%,

11/15/2028

5.85%,

10/04/2030

Ford

Motor

Co

6.10%,

08/19/2032

Ford

Motor

Credit

Co

LLC

5.30%,

09/06/2029

5.80%,

03/08/2029

5.88%,

11/07/2029

5.92%,

03/20/2028

6.05%,

03/05/2031

6.05%,

11/05/2031

6.50%,

02/07/2035

(d) 200

6.80%,

11/07/2028

7.12%,

11/07/2033

7.35%,

11/04/2027

General

Motors

Co

5.00%,

10/01/2028

5.00%,

04/01/2035

(d) 200

5.35%,

04/15/2028

5.40%,

04/01/2048

6.25%,

04/15/2035

6.75%,

04/01/2046

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Automobile

Manufacturers

(continued)

General

Motors

Financial

Co

Inc

2.35%,

02/26/2027

$

$

2.35%,

01/08/2031

2.40%,

04/10/2028

2.40%,

10/15/2028

2.70%,

06/10/2031

4.35%,

01/17/2027

4.90%,

10/06/2029

5.35%,

07/15/2027

5.35%,

01/07/2030

5.40%,

05/08/2027

5.45%,

07/15/2030

5.45%,

09/06/2034

5.55%,

07/15/2029

5.60%,

06/18/2031

5.80%,

01/07/2029

5.90%,

01/07/2035

6.00%,

01/09/2028

6.15%,

07/15/2035

6.40%,

01/09/2033

Honda

Motor

Co

Ltd

2.53%,

03/10/2027

4.44%,

07/08/2028

5.34%,

07/08/2035

Mercedes-Benz

Finance

North

America

LLC

8.50%,

01/18/2031

PACCAR

Financial

Corp

4.25%,

06/23/2027

4.45%,

08/06/2027

4.60%,

01/31/2029

5.00%,

05/13/2027

Toyota

Motor

Corp

4.19%,

06/30/2027

5.05%,

06/30/2035

5.12%,

07/13/2028

Toyota

Motor

Credit

Corp

1.15%,

08/13/2027

1.65%,

01/10/2031

1.90%,

01/13/2027

4.05%,

09/05/2028

4.35%,

10/08/2027

4.45%,

06/29/2029

4.50%,

05/14/2027

4.55%,

09/20/2027

4.55%,

05/17/2030

4.60%,

10/10/2031

4.63%,

01/12/2028

4.80%,

05/15/2030

4.80%,

01/05/2034

4.95%,

01/09/2030

5.00%,

03/19/2027

5.10%,

03/21/2031

$

11,848

Automobile

Parts

&

Equipment

-

.01

%

Aptiv

Swiss

Holdings

Ltd

3.25%,

03/01/2032

Banks

-

.56

%

Banco

Santander

SA

2.75%,

12/03/2030

3.22%,

11/22/2032

(e) 200

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.60%

3.49%,

05/28/2030

5.29%,

08/18/2027

5.44%,

07/15/2031

5.57%,

01/17/2030

5.59%,

08/08/2028

6.94%,

11/07/2033

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Banks

(continued)

Bank

of

America

Corp

1.90%,

07/23/2031

(e) $

$

Secured

Overnight

Financing

Rate

+

1.53%

1.92%,

10/24/2031

(e) 170

Secured

Overnight

Financing

Rate

+

1.37%

2.09%,

06/14/2029

(e) 190

Secured

Overnight

Financing

Rate

+

1.06%

2.30%,

07/21/2032

(e) 380

Secured

Overnight

Financing

Rate

+

1.22%

2.48%,

09/21/2036

(e) 385

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.20%

2.50%,

02/13/2031

(e) 320

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.25%

2.55%,

02/04/2028

(e) 200

Secured

Overnight

Financing

Rate

+

1.05%

2.57%,

10/20/2032

(e) 130

Secured

Overnight

Financing

Rate

+

1.21%

2.65%,

03/11/2032

(e) 205

Secured

Overnight

Financing

Rate

+

1.22%

2.68%,

06/19/2041

(e) 335

Secured

Overnight

Financing

Rate

+

1.93%

2.83%,

10/24/2051

(e) 225

Secured

Overnight

Financing

Rate

+

1.88%

2.97%,

02/04/2033

(e) 240

Secured

Overnight

Financing

Rate

+

1.33%

2.97%,

07/21/2052

(d),(e)

Secured

Overnight

Financing

Rate

+

1.56%

3.19%,

07/23/2030

(e) 335

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.44%

3.25%,

10/21/2027

3.31%,

04/22/2042

(e) 380

Secured

Overnight

Financing

Rate

+

1.58%

3.42%,

12/20/2028

(e) 371

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.30%

3.48%,

03/13/2052

(e) 190

Secured

Overnight

Financing

Rate

+

1.65%

3.59%,

07/21/2028

(e) 250

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.63%

3.82%,

01/20/2028

(e) 200

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.84%

3.97%,

02/07/2030

(e) 250

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.47%

4.18%,

11/25/2027

4.27%,

07/23/2029

(e) 180

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.57%

4.33%,

03/15/2050

(e) 310

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.78%

4.38%,

04/27/2028

(e) 235

Secured

Overnight

Financing

Rate

+

1.58%

4.57%,

04/27/2033

(e) 290

Secured

Overnight

Financing

Rate

+

1.83%

4.62%,

05/09/2029

(e) 105

Secured

Overnight

Financing

Rate

+

1.11%

4.98%,

01/24/2029

(e) 180

Secured

Overnight

Financing

Rate

+

0.83%

5.00%,

01/21/2044

5.02%,

07/22/2033

(e) 340

Secured

Overnight

Financing

Rate

+

2.16%

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Banks

(continued)

Bank

of

America

Corp

(continued)

5.16%,

01/24/2031

(e) $

$

Secured

Overnight

Financing

Rate

+

1.00%

5.20%,

04/25/2029

(e) 295

Secured

Overnight

Financing

Rate

+

1.63%

5.29%,

04/25/2034

(e) 295

Secured

Overnight

Financing

Rate

+

1.91%

5.43%,

08/15/2035

(e) 210

Secured

Overnight

Financing

Rate

+

1.91%

5.46%,

05/09/2036

(e) 215

Secured

Overnight

Financing

Rate

+

1.64%

5.47%,

01/23/2035

(e) 185

Secured

Overnight

Financing

Rate

+

1.65%

5.51%,

01/24/2036

(e) 255

Secured

Overnight

Financing

Rate

+

1.31%

5.52%,

10/25/2035

(e) 215

Secured

Overnight

Financing

Rate

+

1.74%

5.82%,

09/15/2029

(e) 305

Secured

Overnight

Financing

Rate

+

1.57%

5.87%,

09/15/2034

(e) 305

Secured

Overnight

Financing

Rate

+

1.84%

5.88%,

02/07/2042

6.11%,

01/29/2037

7.75%,

05/14/2038

Bank

of

America

NA

6.00%,

10/15/2036

Bank

of

Montreal

3.09%,

01/10/2037

(e) 200

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.40%

4.35%,

09/22/2031

(e) 100

Secured

Overnight

Financing

Rate

+

1.08%

4.64%,

09/10/2030

(e) 125

Secured

Overnight

Financing

Rate

+

1.25%

4.70%,

09/14/2027

5.37%,

06/04/2027

5.72%,

09/25/2028

Bank

of

New

York

Mellon

Corp/The

3.99%,

06/13/2028

(e) 175

Secured

Overnight

Financing

Rate

+

1.15%

4.44%,

06/09/2028

(e) 270

Secured

Overnight

Financing

Rate

+

0.68%

4.54%,

02/01/2029

(e) 110

Secured

Overnight

Financing

Rate

+

1.17%

4.89%,

07/21/2028

(e) 145

Secured

Overnight

Financing

Rate

+

0.84%

4.94%,

02/11/2031

(e) 125

Secured

Overnight

Financing

Rate

+

0.89%

4.97%,

04/26/2034

(e) 110

Secured

Overnight

Financing

Rate

+

1.61%

5.06%,

07/22/2032

(e) 145

Secured

Overnight

Financing

Rate

+

1.23%

5.19%,

03/14/2035

(e) 195

Secured

Overnight

Financing

Rate

+

1.42%

5.32%,

06/06/2036

(e) 50

Secured

Overnight

Financing

Rate

+

1.35%

5.83%,

10/25/2033

(e) 150

Secured

Overnight

Financing

Rate

+

2.07%

6.32%,

10/25/2029

(e) 145

Secured

Overnight

Financing

Rate

+

1.60%

Bank

of

Nova

Scotia/The

4.04%,

09/15/2028

(e) 125

Secured

Overnight

Financing

Rate

+

0.76%

4.74%,

11/10/2032

(e) 135

Secured

Overnight

Financing

Rate

+

1.44%

4.85%,

02/01/2030

5.40%,

06/04/2027

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Banks

(continued)

Barclays

PLC

2.65%,

06/24/2031

(e) $

$

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.90%

3.56%,

09/23/2035

(e) 200

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

2.90%

3.81%,

03/10/2042

(e) 200

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.70%

4.84%,

09/10/2028

(e) 200

Secured

Overnight

Financing

Rate

+

1.34%

4.97%,

05/16/2029

(e) 210

Month

USD

LIBOR

+

1.90%

5.09%,

02/25/2029

(e) 200

Secured

Overnight

Financing

Rate

+

0.96%

5.67%,

03/12/2028

(e) 300

Secured

Overnight

Financing

Rate

+

1.49%

5.69%,

03/12/2030

(e) 300

Secured

Overnight

Financing

Rate

+

1.74%

5.79%,

02/25/2036

(e) 200

Secured

Overnight

Financing

Rate

+

1.59%

6.22%,

05/09/2034

(e) 295

Secured

Overnight

Financing

Rate

+

2.98%

6.69%,

09/13/2034

(e) 305

Secured

Overnight

Financing

Rate

+

2.62%

Canadian

Imperial

Bank

of

Commerce

4.58%,

09/08/2031

(e) 100

Secured

Overnight

Financing

Rate

+

1.17%

4.63%,

09/11/2030

(e) 135

Secured

Overnight

Financing

Rate

+

1.34%

4.86%,

01/13/2028

(e) 190

Secured

Overnight

Financing

Rate

+

0.72%

5.00%,

04/28/2028

5.26%,

04/08/2029

5.99%,

10/03/2028

Capital

One

NA

2.70%,

02/06/2030

Citibank

NA

5.57%,

04/30/2034

5.80%,

09/29/2028

Citigroup

Inc

2.57%,

06/03/2031

(e) 320

Secured

Overnight

Financing

Rate

+

2.11%

2.67%,

01/29/2031

(e) 315

Secured

Overnight

Financing

Rate

+

1.15%

2.90%,

11/03/2042

(e) 195

Secured

Overnight

Financing

Rate

+

1.38%

2.98%,

11/05/2030

(e) 155

Secured

Overnight

Financing

Rate

+

1.42%

3.06%,

01/25/2033

(e) 185

Secured

Overnight

Financing

Rate

+

1.35%

3.67%,

07/24/2028

(e) 325

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.65%

3.79%,

03/17/2033

(e) 195

Secured

Overnight

Financing

Rate

+

1.94%

3.89%,

01/10/2028

(e) 300

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.82%

4.07%,

04/23/2029

(e) 240

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.45%

4.28%,

04/24/2048

(e) 165

CME

Term

Secured

Overnight

Financing

Rate

Month

+

2.10%

4.45%,

09/29/2027

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Banks

(continued)

Citigroup

Inc

(continued)

4.50%,

09/11/2031

(e) $

$

Secured

Overnight

Financing

Rate

+

1.17%

4.54%,

09/19/2030

(e) 270

Secured

Overnight

Financing

Rate

+

1.34%

4.64%,

05/07/2028

(e) 105

Secured

Overnight

Financing

Rate

+

1.14%

4.65%,

07/30/2045

4.66%,

05/24/2028

(e) 365

Secured

Overnight

Financing

Rate

+

1.89%

4.91%,

05/24/2033

(e) 230

Secured

Overnight

Financing

Rate

+

2.09%

4.95%,

05/07/2031

(e) 215

Secured

Overnight

Financing

Rate

+

1.46%

5.17%,

02/13/2030

(e) 310

Secured

Overnight

Financing

Rate

+

1.36%

5.17%,

09/11/2036

(e) 210

Secured

Overnight

Financing

Rate

+

1.49%

5.30%,

05/06/2044

5.33%,

03/27/2036

(e) 290

Secured

Overnight

Financing

Rate

+

1.47%

5.41%,

09/19/2039

(e) 135

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.73%

5.61%,

03/04/2056

(e) 125

Secured

Overnight

Financing

Rate

+

1.75%

5.83%,

02/13/2035

(e) 155

Secured

Overnight

Financing

Rate

+

2.06%

5.88%,

01/30/2042

6.02%,

01/24/2036

(e) 230

Secured

Overnight

Financing

Rate

+

1.83%

6.17%,

05/25/2034

(e) 295

Secured

Overnight

Financing

Rate

+

2.66%

6.27%,

11/17/2033

(e) 155

Secured

Overnight

Financing

Rate

+

2.34%

6.63%,

06/15/2032

6.68%,

09/13/2043

8.13%,

07/15/2039

Cooperatieve

Rabobank

UA

5.25%,

05/24/2041

5.25%,

08/04/2045

Cooperatieve

Rabobank

UA/NY

4.80%,

01/09/2029

(d) 305

Deutsche

Bank

AG/New

York

NY

4.95%,

08/04/2031

(e) 150

Secured

Overnight

Financing

Rate

+

1.30%

5.00%,

09/11/2030

(e) 275

Secured

Overnight

Financing

Rate

+

1.70%

5.30%,

05/09/2031

(e) 150

Secured

Overnight

Financing

Rate

+

1.72%

5.37%,

09/09/2027

5.37%,

01/10/2029

(e) 190

Secured

Overnight

Financing

Rate

+

1.21%

6.72%,

01/18/2029

(e) 300

Secured

Overnight

Financing

Rate

+

3.18%

7.08%,

02/10/2034

(e) 305

Secured

Overnight

Financing

Rate

+

3.65%

Fifth

Third

Bancorp

4.06%,

04/25/2028

(e) 150

Secured

Overnight

Financing

Rate

+

1.36%

5.63%,

01/29/2032

(e) 150

Secured

Overnight

Financing

Rate

+

1.84%

6.34%,

07/27/2029

(e) 225

Secured

Overnight

Financing

Rate

+

2.34%

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Banks

(continued)

Goldman

Sachs

Group

Inc/The

1.99%,

01/27/2032

(e) $

$

Secured

Overnight

Financing

Rate

+

1.09%

2.38%,

07/21/2032

(e) 285

Secured

Overnight

Financing

Rate

+

1.25%

2.60%,

02/07/2030

2.62%,

04/22/2032

(e) 190

Secured

Overnight

Financing

Rate

+

1.28%

2.64%,

02/24/2028

(e) 150

Secured

Overnight

Financing

Rate

+

1.11%

2.65%,

10/21/2032

(e) 195

Secured

Overnight

Financing

Rate

+

1.26%

2.91%,

07/21/2042

(e) 185

Secured

Overnight

Financing

Rate

+

1.47%

3.10%,

02/24/2033

(e) 195

Secured

Overnight

Financing

Rate

+

1.41%

3.21%,

04/22/2042

(e) 190

Secured

Overnight

Financing

Rate

+

1.51%

3.44%,

02/24/2043

(e) 190

Secured

Overnight

Financing

Rate

+

1.63%

3.81%,

04/23/2029

(e) 315

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.42%

3.85%,

01/26/2027

4.15%,

10/21/2029

(e) 100

Secured

Overnight

Financing

Rate

+

0.90%

4.22%,

05/01/2029

(e) 215

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.56%

4.37%,

10/21/2031

(e) 200

Secured

Overnight

Financing

Rate

+

1.06%

4.41%,

04/23/2039

(e) 180

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.69%

4.48%,

08/23/2028

(e) 280

Secured

Overnight

Financing

Rate

+

1.73%

4.69%,

10/23/2030

(e) 265

Secured

Overnight

Financing

Rate

+

1.14%

4.80%,

07/08/2044

4.94%,

04/23/2028

(e) 230

Secured

Overnight

Financing

Rate

+

1.32%

4.94%,

10/21/2036

(e) 100

Secured

Overnight

Financing

Rate

+

1.33%

5.02%,

10/23/2035

(e) 265

Secured

Overnight

Financing

Rate

+

1.42%

5.05%,

07/23/2030

(e) 315

Secured

Overnight

Financing

Rate

+

1.21%

5.15%,

05/22/2045

5.21%,

01/28/2031

(e) 240

Secured

Overnight

Financing

Rate

+

1.08%

5.33%,

07/23/2035

(e) 250

Secured

Overnight

Financing

Rate

+

1.55%

5.54%,

01/28/2036

(e) 190

Secured

Overnight

Financing

Rate

+

1.38%

5.56%,

11/19/2045

(e) 270

Secured

Overnight

Financing

Rate

+

1.58%

5.73%,

04/25/2030

(e) 265

Secured

Overnight

Financing

Rate

+

1.27%

5.73%,

01/28/2056

(e) 120

Secured

Overnight

Financing

Rate

+

1.70%

5.85%,

04/25/2035

(e) 180

Secured

Overnight

Financing

Rate

+

1.55%

6.48%,

10/24/2029

(e) 295

Secured

Overnight

Financing

Rate

+

1.77%

6.56%,

10/24/2034

(e) 145

Secured

Overnight

Financing

Rate

+

1.95%

6.75%,

10/01/2037

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Banks

(continued)

HSBC

Holdings

PLC

2.01%,

09/22/2028

(e) $

$

Secured

Overnight

Financing

Rate

+

1.73%

2.85%,

06/04/2031

(e) 200

Secured

Overnight

Financing

Rate

+

2.39%

2.87%,

11/22/2032

(e) 200

Secured

Overnight

Financing

Rate

+

1.41%

3.97%,

05/22/2030

(e) 200

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.87%

4.04%,

03/13/2028

(e) 250

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.81%

4.58%,

06/19/2029

(e) 365

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.80%

4.76%,

06/09/2028

(e) 200

Secured

Overnight

Financing

Rate

+

2.11%

5.29%,

11/19/2030

(e) 270

Secured

Overnight

Financing

Rate

+

1.29%

5.40%,

08/11/2033

(e) 335

Secured

Overnight

Financing

Rate

+

2.87%

5.55%,

03/04/2030

(e) 310

Secured

Overnight

Financing

Rate

+

1.46%

5.72%,

03/04/2035

(d),(e)

Secured

Overnight

Financing

Rate

+

1.78%

5.73%,

05/17/2032

(e) 300

Secured

Overnight

Financing

Rate

+

1.52%

5.74%,

09/10/2036

(e) 200

Secured

Overnight

Financing

Rate

+

1.96%

5.79%,

05/13/2036

(e) 215

Secured

Overnight

Financing

Rate

+

1.88%

5.87%,

11/18/2035

(e) 270

Secured

Overnight

Financing

Rate

+

1.90%

6.10%,

01/14/2042

6.16%,

03/09/2029

(e) 200

Secured

Overnight

Financing

Rate

+

1.97%

6.25%,

03/09/2034

(e) 260

Secured

Overnight

Financing

Rate

+

2.39%

6.33%,

03/09/2044

(e) 215

Secured

Overnight

Financing

Rate

+

2.65%

6.55%,

06/20/2034

(e) 295

Secured

Overnight

Financing

Rate

+

2.98%

7.39%,

11/03/2028

(e) 305

Secured

Overnight

Financing

Rate

+

3.35%

Huntington

Bancshares

Inc/OH

2.55%,

02/04/2030

5.27%,

01/15/2031

(e) 135

Secured

Overnight

Financing

Rate

+

1.28%

Huntington

National

Bank/The

5.65%,

01/10/2030

ING

Groep

NV

2.73%,

04/01/2032

(e) 200

Secured

Overnight

Financing

Rate

+

1.32%

4.86%,

03/25/2029

(e) 250

Secured

Overnight

Financing

Rate

+

1.01%

5.34%,

03/19/2030

(e) 300

Secured

Overnight

Financing

Rate

+

1.44%

6.11%,

09/11/2034

(e) 230

Secured

Overnight

Financing

Rate

+

2.09%

JPMorgan

Chase

&

Co

1.95%,

02/04/2032

(e) 190

Secured

Overnight

Financing

Rate

+

1.07%

2.07%,

06/01/2029

(e) 295

Secured

Overnight

Financing

Rate

+

1.02%

2.18%,

06/01/2028

(e) 265

Secured

Overnight

Financing

Rate

+

1.89%

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Banks

(continued)

JPMorgan

Chase

&

Co

(continued)

2.52%,

04/22/2031

(e) $

$

Secured

Overnight

Financing

Rate

+

2.04%

2.53%,

11/19/2041

(e) 180

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.51%

2.55%,

11/08/2032

(e) 195

Secured

Overnight

Financing

Rate

+

1.18%

2.58%,

04/22/2032

(e) 190

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.25%

2.74%,

10/15/2030

(e) 260

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.51%

2.96%,

05/13/2031

(e) 175

CME

Term

Secured

Overnight

Financing

Rate

Month

+

2.52%

3.11%,

04/22/2041

(e) 190

CME

Term

Secured

Overnight

Financing

Rate

Month

+

2.46%

3.11%,

04/22/2051

(e) 105

Secured

Overnight

Financing

Rate

+

2.44%

3.33%,

04/22/2052

(e) 190

Secured

Overnight

Financing

Rate

+

1.58%

3.51%,

01/23/2029

(e) 200

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.21%

3.63%,

12/01/2027

3.88%,

07/24/2038

(e) 200

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.62%

3.96%,

11/15/2048

(e) 400

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.64%

4.01%,

04/23/2029

(e) 270

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.38%

4.03%,

07/24/2048

(e) 30

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.72%

4.20%,

07/23/2029

(e) 150

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.52%

4.25%,

10/01/2027

4.25%,

10/22/2031

(e) 200

Secured

Overnight

Financing

Rate

+

0.93%

4.32%,

04/26/2028

(e) 290

Secured

Overnight

Financing

Rate

+

1.56%

4.51%,

10/22/2028

(e) 200

Secured

Overnight

Financing

Rate

+

0.86%

4.57%,

06/14/2030

(e) 295

Secured

Overnight

Financing

Rate

+

1.75%

4.59%,

04/26/2033

(e) 195

Secured

Overnight

Financing

Rate

+

1.80%

4.60%,

10/22/2030

(e) 265

Secured

Overnight

Financing

Rate

+

1.04%

4.81%,

10/22/2036

(e) 175

Secured

Overnight

Financing

Rate

+

1.19%

4.85%,

07/25/2028

(e) 70

Secured

Overnight

Financing

Rate

+

1.99%

4.85%,

02/01/2044

4.91%,

07/25/2033

(e) 340

Secured

Overnight

Financing

Rate

+

2.08%

4.95%,

10/22/2035

(e) 255

Secured

Overnight

Financing

Rate

+

1.34%

4.95%,

06/01/2045

4.98%,

07/22/2028

(e) 135

Secured

Overnight

Financing

Rate

+

0.93%

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Banks

(continued)

JPMorgan

Chase

&

Co

(continued)

5.00%,

07/22/2030

(e) $

$

Secured

Overnight

Financing

Rate

+

1.13%

5.01%,

01/23/2030

(e) 185

Secured

Overnight

Financing

Rate

+

1.31%

5.04%,

01/23/2028

(e) 350

Secured

Overnight

Financing

Rate

+

1.19%

5.10%,

04/22/2031

(e) 240

Secured

Overnight

Financing

Rate

+

1.44%

5.14%,

01/24/2031

(e) 195

Secured

Overnight

Financing

Rate

+

1.01%

5.29%,

07/22/2035

(e) 215

Secured

Overnight

Financing

Rate

+

1.46%

5.30%,

07/24/2029

(e) 150

Secured

Overnight

Financing

Rate

+

1.45%

5.34%,

01/23/2035

(e) 215

Secured

Overnight

Financing

Rate

+

1.62%

5.35%,

06/01/2034

(e) 370

Secured

Overnight

Financing

Rate

+

1.85%

5.50%,

01/24/2036

(e) 205

Secured

Overnight

Financing

Rate

+

1.32%

5.53%,

11/29/2045

(e) 135

Secured

Overnight

Financing

Rate

+

1.55%

5.57%,

04/22/2028

(e) 300

Secured

Overnight

Financing

Rate

+

0.93%

5.57%,

04/22/2036

(e) 115

Secured

Overnight

Financing

Rate

+

1.68%

5.58%,

04/22/2030

(e) 300

Secured

Overnight

Financing

Rate

+

1.16%

5.58%,

07/23/2036

(e) 100

Secured

Overnight

Financing

Rate

+

1.64%

5.60%,

07/15/2041

5.63%,

08/16/2043

5.72%,

09/14/2033

(e) 160

Secured

Overnight

Financing

Rate

+

2.58%

5.77%,

04/22/2035

(e) 195

Secured

Overnight

Financing

Rate

+

1.49%

6.09%,

10/23/2029

(e) 295

Secured

Overnight

Financing

Rate

+

1.57%

6.25%,

10/23/2034

(e) 295

Secured

Overnight

Financing

Rate

+

1.81%

6.40%,

05/15/2038

KeyBank

NA/Cleveland

OH

5.85%,

11/15/2027

KeyCorp

2.25%,

04/06/2027

2.55%,

10/01/2029

Korea

Development

Bank/The

3.75%,

09/16/2030

4.38%,

02/15/2028

5.63%,

10/23/2033

Kreditanstalt

fuer

Wiederaufbau

0.00%,

04/18/2036

(f) 380

0.00%,

06/29/2037

(f) 200

2.88%,

04/03/2028

3.00%,

05/20/2027

3.50%,

08/27/2027

3.50%,

08/09/2028

3.75%,

02/15/2028

3.75%,

07/15/2030

3.88%,

05/15/2028

3.88%,

06/15/2028

4.00%,

06/28/2027

4.00%,

03/15/2029

4.13%,

07/15/2033

4.38%,

03/01/2027

4.38%,

02/28/2034

4.63%,

03/18/2030

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Banks

(continued)

Kreditanstalt

fuer

Wiederaufbau

(continued)

4.75%,

10/29/2030

$

$

Landwirtschaftliche

Rentenbank

0.88%,

09/03/2030

3.63%,

10/08/2030

3.88%,

09/28/2027

3.88%,

06/14/2028

4.13%,

05/28/2030

4.63%,

04/17/2029

Lloyds

Banking

Group

PLC

3.75%,

01/11/2027

4.82%,

06/13/2029

(e) 200

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

0.83%

4.98%,

08/11/2033

(e) 335

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

2.30%

5.09%,

11/26/2028

(e) 200

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

0.85%

5.30%,

12/01/2045

5.68%,

01/05/2035

(e) 305

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.75%

M&T

Bank

Corp

5.18%,

07/08/2031

(e) 105

Secured

Overnight

Financing

Rate

+

1.40%

Mitsubishi

UFJ

Financial

Group

Inc

2.05%,

07/17/2030

2.56%,

02/25/2030

3.20%,

07/18/2029

4.08%,

04/19/2028

(e) 200

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.30%

4.32%,

04/19/2033

(e) 200

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.55%

4.53%,

09/12/2031

(e) 200

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

0.80%

5.13%,

07/20/2033

(e) 200

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

2.13%

5.16%,

04/24/2031

(e) 200

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.17%

5.35%,

09/13/2028

(e) 325

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.90%

5.41%,

04/19/2034

(d),(e)

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.97%

5.57%,

01/16/2036

(e) 200

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

0.95%

Mizuho

Financial

Group

Inc

2.20%,

07/10/2031

(e) 200

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.77%

2.26%,

07/09/2032

(e) 200

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

0.90%

3.15%,

07/16/2030

(e) 200

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.39%

5.41%,

09/13/2028

(e) 325

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

2.05%

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Banks

(continued)

Mizuho

Financial

Group

Inc

(continued)

5.59%,

07/10/2035

(e) $

$

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.30%

5.74%,

05/27/2031

(e) 305

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.65%

5.75%,

07/06/2034

(e) 300

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.90%

Morgan

Stanley

1.79%,

02/13/2032

(e) 355

Secured

Overnight

Financing

Rate

+

1.03%

1.93%,

04/28/2032

(e) 105

Secured

Overnight

Financing

Rate

+

1.02%

2.24%,

07/21/2032

(e) 190

Secured

Overnight

Financing

Rate

+

1.18%

2.48%,

01/21/2028

(e) 120

Secured

Overnight

Financing

Rate

+

1.00%

2.48%,

09/16/2036

(e) 265

Secured

Overnight

Financing

Rate

+

1.36%

2.51%,

10/20/2032

(e) 180

Secured

Overnight

Financing

Rate

+

1.20%

2.80%,

01/25/2052

(e) 120

Secured

Overnight

Financing

Rate

+

1.43%

2.94%,

01/21/2033

(e) 140

Secured

Overnight

Financing

Rate

+

1.29%

3.22%,

04/22/2042

(e) 190

Secured

Overnight

Financing

Rate

+

1.49%

3.59%,

07/22/2028

Month

USD

LIBOR

+

1.34%

3.63%,

01/20/2027

3.77%,

01/24/2029

(e) 180

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.40%

3.95%,

04/23/2027

3.97%,

07/22/2038

Month

USD

LIBOR

+

1.46%

4.13%,

10/18/2029

(e) 100

Secured

Overnight

Financing

Rate

+

0.91%

4.21%,

04/20/2028

(e) 390

Secured

Overnight

Financing

Rate

+

1.61%

4.30%,

01/27/2045

4.36%,

10/22/2031

(e) 100

Secured

Overnight

Financing

Rate

+

1.07%

4.38%,

01/22/2047

4.65%,

10/18/2030

(e) 170

Secured

Overnight

Financing

Rate

+

1.10%

4.89%,

07/20/2033

(e) 225

Secured

Overnight

Financing

Rate

+

2.08%

4.89%,

10/22/2036

(e) 195

Secured

Overnight

Financing

Rate

+

1.31%

5.04%,

07/19/2030

(e) 140

Secured

Overnight

Financing

Rate

+

1.22%

5.12%,

02/01/2029

(e) 300

Secured

Overnight

Financing

Rate

+

1.73%

5.16%,

04/20/2029

(e) 150

Secured

Overnight

Financing

Rate

+

1.59%

5.17%,

01/16/2030

(e) 230

Secured

Overnight

Financing

Rate

+

1.45%

5.19%,

04/17/2031

(e) 230

Secured

Overnight

Financing

Rate

+

1.51%

5.23%,

01/15/2031

(e) 205

Secured

Overnight

Financing

Rate

+

1.11%

5.25%,

04/21/2034

(e) 295

Secured

Overnight

Financing

Rate

+

1.87%

5.32%,

07/19/2035

(e) 290

Secured

Overnight

Financing

Rate

+

1.56%

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Banks

(continued)

Morgan

Stanley

(continued)

5.42%,

07/21/2034

(e) $

$

Secured

Overnight

Financing

Rate

+

1.88%

5.45%,

07/20/2029

(e) 150

Secured

Overnight

Financing

Rate

+

1.63%

5.47%,

01/18/2035

(e) 155

Secured

Overnight

Financing

Rate

+

1.73%

5.52%,

11/19/2055

(e) 170

Secured

Overnight

Financing

Rate

+

1.71%

5.59%,

01/18/2036

(e) 200

Secured

Overnight

Financing

Rate

+

1.42%

5.60%,

03/24/2051

(e) 200

Secured

Overnight

Financing

Rate

+

4.84%

5.65%,

04/13/2028

(e) 130

Secured

Overnight

Financing

Rate

+

1.01%

5.66%,

04/18/2030

(e) 300

Secured

Overnight

Financing

Rate

+

1.26%

5.66%,

04/17/2036

(e) 185

Secured

Overnight

Financing

Rate

+

1.76%

5.83%,

04/19/2035

(e) 90

Secured

Overnight

Financing

Rate

+

1.58%

5.95%,

01/19/2038

(e) 150

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

2.43%

6.30%,

10/18/2028

(e) 145

Secured

Overnight

Financing

Rate

+

2.24%

6.34%,

10/18/2033

(e) 150

Secured

Overnight

Financing

Rate

+

2.56%

6.38%,

07/24/2042

6.41%,

11/01/2029

(e) 200

Secured

Overnight

Financing

Rate

+

1.83%

6.63%,

11/01/2034

(e) 185

Secured

Overnight

Financing

Rate

+

2.05%

Morgan

Stanley

Bank

NA

4.97%,

07/14/2028

(e) 285

Secured

Overnight

Financing

Rate

+

0.93%

5.02%,

01/12/2029

(e) 290

Secured

Overnight

Financing

Rate

+

0.91%

Morgan

Stanley

Private

Bank

NA

4.20%,

11/17/2028

(e) 250

Secured

Overnight

Financing

Rate

+

0.78%

4.47%,

11/19/2031

(e) 250

Secured

Overnight

Financing

Rate

+

1.02%

4.73%,

07/18/2031

(e) 250

Secured

Overnight

Financing

Rate

+

1.08%

National

Australia

Bank

Ltd/New

York

4.53%,

06/13/2030

5.09%,

06/11/2027

NatWest

Group

PLC

4.89%,

05/18/2029

(e) 200

Month

USD

LIBOR

+

1.75%

5.08%,

01/27/2030

(e) 400

Month

USD

LIBOR

+

1.91%

5.12%,

05/23/2031

(e) 200

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.05%

Northern

Trust

Corp

4.00%,

05/10/2027

Oesterreichische

Kontrollbank

AG

3.63%,

09/09/2027

3.75%,

09/05/2029

3.75%,

09/10/2030

4.00%,

05/28/2028

4.25%,

03/01/2028

4.50%,

01/24/2030

4.75%,

05/21/2027

PNC

Bank

NA

2.70%,

10/22/2029

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Banks

(continued)

PNC

Financial

Services

Group

Inc/The

2.31%,

04/23/2032

(e) $

$

Secured

Overnight

Financing

Rate

+

0.98%

2.55%,

01/22/2030

4.63%,

06/06/2033

(e) 105

Secured

Overnight

Financing

Rate

+

1.85%

4.90%,

05/13/2031

(e) 105

Secured

Overnight

Financing

Rate

+

1.33%

5.22%,

01/29/2031

(e) 155

Secured

Overnight

Financing

Rate

+

1.07%

5.30%,

01/21/2028

(e) 155

Secured

Overnight

Financing

Rate

+

1.34%

5.35%,

12/02/2028

(e) 105

Secured

Overnight

Financing

Rate

+

1.62%

5.37%,

07/21/2036

(e) 80

Secured

Overnight

Financing

Rate

+

1.42%

5.40%,

07/23/2035

(e) 315

Secured

Overnight

Financing

Rate

+

1.60%

5.68%,

01/22/2035

(e) 75

Secured

Overnight

Financing

Rate

+

1.90%

5.94%,

08/18/2034

(e) 305

Secured

Overnight

Financing

Rate

+

1.95%

Royal

Bank

of

Canada

3.63%,

05/04/2027

3.88%,

05/04/2032

4.50%,

08/06/2029

(e) 100

Secured

Overnight

Financing

Rate

+

0.89%

4.65%,

10/18/2030

(e) 200

Secured

Overnight

Financing

Rate

+

1.08%

4.95%,

02/01/2029

4.97%,

01/24/2029

(e) 190

Secured

Overnight

Financing

Rate

+

0.83%

4.97%,

05/02/2031

(d),(e)

Secured

Overnight

Financing

Rate

+

1.13%

5.00%,

05/02/2033

5.15%,

02/04/2031

(e) 190

Secured

Overnight

Financing

Rate

+

1.03%

6.00%,

11/01/2027

Santander

Holdings

USA

Inc

2.49%,

01/06/2028

(d),(e)

Secured

Overnight

Financing

Rate

+

1.25%

5.35%,

09/06/2030

(e) 135

Secured

Overnight

Financing

Rate

+

1.94%

5.47%,

03/20/2029

(e) 120

Secured

Overnight

Financing

Rate

+

1.61%

Santander

UK

Group

Holdings

PLC

2.47%,

01/11/2028

(e) 200

Secured

Overnight

Financing

Rate

+

1.22%

4.32%,

09/22/2029

(e) 205

Secured

Overnight

Financing

Rate

+

1.07%

State

Street

Corp

2.20%,

02/07/2028

(e) 145

Secured

Overnight

Financing

Rate

+

0.73%

2.20%,

03/03/2031

4.42%,

05/13/2033

(e) 185

Secured

Overnight

Financing

Rate

+

1.61%

4.54%,

02/28/2028

4.68%,

10/22/2032

(e) 70

Secured

Overnight

Financing

Rate

+

1.05%

4.78%,

10/23/2036

(e) 55

Secured

Overnight

Financing

Rate

+

1.22%

4.82%,

01/26/2034

(e) 65

Secured

Overnight

Financing

Rate

+

1.57%

4.83%,

04/24/2030

5.15%,

02/28/2036

(e) 125

Secured

Overnight

Financing

Rate

+

1.22%

5.68%,

11/21/2029

(e) 150

Secured

Overnight

Financing

Rate

+

1.48%

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Banks

(continued)

Sumitomo

Mitsui

Financial

Group

Inc

1.90%,

09/17/2028

$

$

2.13%,

07/08/2030

2.14%,

09/23/2030

3.04%,

07/16/2029

3.36%,

07/12/2027

3.45%,

01/11/2027

(d) 140

5.32%,

07/09/2029

5.42%,

07/09/2031

5.63%,

01/15/2035

5.77%,

01/13/2033

5.80%,

07/13/2028

5.80%,

07/08/2046

(e) 105

Secured

Overnight

Financing

Rate

+

1.78%

5.81%,

09/14/2033

6.18%,

07/13/2043

Toronto-Dominion

Bank/The

1.95%,

01/12/2027

(d) 100

3.20%,

03/10/2032

4.11%,

06/08/2027

4.46%,

06/08/2032

4.57%,

06/02/2028

4.69%,

09/15/2027

4.78%,

12/17/2029

4.81%,

06/03/2030

4.93%,

10/15/2035

4.99%,

04/05/2029

5.30%,

01/30/2032

5.52%,

07/17/2028

Truist

Financial

Corp

1.13%,

08/03/2027

1.89%,

06/07/2029

(e) 175

Secured

Overnight

Financing

Rate

+

0.86%

1.95%,

06/05/2030

4.12%,

06/06/2028

(e) 135

Secured

Overnight

Financing

Rate

+

1.37%

4.87%,

01/26/2029

(e) 150

Secured

Overnight

Financing

Rate

+

1.44%

4.96%,

10/23/2036

(e) 195

Secured

Overnight

Financing

Rate

+

1.40%

5.07%,

05/20/2031

(e) 105

Secured

Overnight

Financing

Rate

+

1.31%

5.12%,

01/26/2034

(e) 150

Secured

Overnight

Financing

Rate

+

1.85%

5.15%,

08/05/2032

(e) 140

Secured

Overnight

Financing

Rate

+

1.57%

5.44%,

01/24/2030

(e) 75

Secured

Overnight

Financing

Rate

+

1.62%

5.71%,

01/24/2035

(e) 60

Secured

Overnight

Financing

Rate

+

1.92%

5.87%,

06/08/2034

(e) 150

Secured

Overnight

Financing

Rate

+

2.36%

UBS

Group

AG

4.88%,

05/15/2045

US

Bancorp

2.22%,

01/27/2028

(e) 155

Secured

Overnight

Financing

Rate

+

0.73%

2.49%,

11/03/2036

(e) 175

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

0.95%

3.00%,

07/30/2029

3.15%,

04/27/2027

4.65%,

02/01/2029

(e) 130

Secured

Overnight

Financing

Rate

+

1.23%

4.84%,

02/01/2034

(e) 130

Secured

Overnight

Financing

Rate

+

1.60%

5.05%,

02/12/2031

(e) 255

Secured

Overnight

Financing

Rate

+

1.06%

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Banks

(continued)

US

Bancorp

(continued)

5.38%,

01/23/2030

(e) $

$

Secured

Overnight

Financing

Rate

+

1.56%

5.68%,

01/23/2035

(e) 45

Secured

Overnight

Financing

Rate

+

1.86%

5.84%,

06/12/2034

(e) 295

Secured

Overnight

Financing

Rate

+

2.26%

5.85%,

10/21/2033

(e) 150

Secured

Overnight

Financing

Rate

+

2.09%

US

Bank

NA/Cincinnati

OH

4.73%,

05/15/2028

(e) 250

Secured

Overnight

Financing

Rate

+

0.91%

Wells

Fargo

&

Co

2.39%,

06/02/2028

(e) 250

Secured

Overnight

Financing

Rate

+

2.10%

3.07%,

04/30/2041

(e) 280

Secured

Overnight

Financing

Rate

+

2.53%

3.35%,

03/02/2033

(e) 235

Secured

Overnight

Financing

Rate

+

1.50%

3.58%,

05/22/2028

(e) 250

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.57%

4.08%,

09/15/2029

(e) 210

Secured

Overnight

Financing

Rate

+

0.88%

4.40%,

06/14/2046

4.48%,

04/04/2031

(e) 245

CME

Term

Secured

Overnight

Financing

Rate

Month

+

4.03%

4.61%,

04/25/2053

(e) 200

Secured

Overnight

Financing

Rate

+

2.13%

4.65%,

11/04/2044

4.81%,

07/25/2028

(e) 170

Secured

Overnight

Financing

Rate

+

1.98%

4.89%,

09/15/2036

(e) 105

Secured

Overnight

Financing

Rate

+

1.34%

4.90%,

01/24/2028

(e) 190

Secured

Overnight

Financing

Rate

+

0.78%

4.90%,

07/25/2033

(e) 170

Secured

Overnight

Financing

Rate

+

2.10%

4.90%,

11/17/2045

4.97%,

04/23/2029

(e) 110

Secured

Overnight

Financing

Rate

+

1.37%

5.01%,

04/04/2051

(e) 325

CME

Term

Secured

Overnight

Financing

Rate

Month

+

4.50%

5.15%,

04/23/2031

(e) 170

Secured

Overnight

Financing

Rate

+

1.50%

5.20%,

01/23/2030

(e) 305

Secured

Overnight

Financing

Rate

+

1.50%

5.21%,

12/03/2035

(e) 265

Secured

Overnight

Financing

Rate

+

1.38%

5.24%,

01/24/2031

(e) 180

Secured

Overnight

Financing

Rate

+

1.11%

5.38%,

11/02/2043

5.39%,

04/24/2034

(e) 210

Secured

Overnight

Financing

Rate

+

2.02%

5.50%,

01/23/2035

(e) 305

Secured

Overnight

Financing

Rate

+

1.78%

5.56%,

07/25/2034

(e) 225

Secured

Overnight

Financing

Rate

+

1.99%

5.57%,

07/25/2029

(e) 225

Secured

Overnight

Financing

Rate

+

1.74%

5.61%,

04/23/2036

(e) 110

Secured

Overnight

Financing

Rate

+

1.74%

5.61%,

01/15/2044

5.71%,

04/22/2028

(e) 300

Secured

Overnight

Financing

Rate

+

1.07%

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Banks

(continued)

Wells

Fargo

&

Co

(continued)

6.30%,

10/23/2029

(e) $

$

Secured

Overnight

Financing

Rate

+

1.79%

6.49%,

10/23/2034

(e) 295

Secured

Overnight

Financing

Rate

+

2.06%

Wells

Fargo

Bank

NA

5.95%,

08/26/2036

500

533

6.60%,

01/15/2038

Westpac

Banking

Corp

2.96%,

11/16/2040

3.02%,

11/18/2036

(e) 150

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.53%

3.13%,

11/18/2041

4.11%,

07/24/2034

(e) 165

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

2.00%

4.35%,

07/01/2030

4.42%,

07/24/2039

5.05%,

04/16/2029

5.46%,

11/18/2027

$

100,154

Beverages

-

.43

%

Anheuser-Busch

Cos

LLC

/

Anheuser-Busch

InBev

Worldwide

Inc

4.70%,

02/01/2036

630

624

4.90%,

02/01/2046

824

762

Anheuser-Busch

InBev

Worldwide

Inc

4.75%,

01/23/2029

5.00%,

06/15/2034

5.45%,

01/23/2039

5.80%,

01/23/2059

8.20%,

01/15/2039

Coca-Cola

Co/The

1.00%,

03/15/2028

1.50%,

03/05/2028

1.65%,

06/01/2030

2.50%,

06/01/2040

2.88%,

05/05/2041

5.00%,

05/13/2034

5.30%,

05/13/2054

Constellation

Brands

Inc

2.25%,

08/01/2031

3.15%,

08/01/2029

4.35%,

05/09/2027

4.90%,

05/01/2033

4.95%,

11/01/2035

Diageo

Capital

PLC

2.38%,

10/24/2029

5.30%,

10/24/2027

5.63%,

10/05/2033

5.88%,

09/30/2036

Keurig

Dr

Pepper

Inc

2.25%,

03/15/2031

3.35%,

03/15/2051

3.95%,

04/15/2029

4.05%,

04/15/2032

4.50%,

04/15/2052

5.10%,

03/15/2027

5.15%,

05/15/2035

Molson

Coors

Beverage

Co

5.00%,

05/01/2042

PepsiCo

Inc

1.63%,

05/01/2030

1.95%,

10/21/2031

2.63%,

07/29/2029

2.63%,

10/21/2041

2.88%,

10/15/2049

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Beverages

(continued)

PepsiCo

Inc

(continued)

3.60%,

02/18/2028

$

$

4.20%,

07/18/2052

4.30%,

07/23/2030

4.45%,

02/07/2028

4.45%,

05/15/2028

4.65%,

07/23/2032

4.80%,

07/17/2034

5.00%,

02/07/2035

Pepsico

Singapore

Financing

I

Pte

Ltd

4.55%,

02/16/2029

$

7,823

Biotechnology

-

.34

%

Amgen

Inc

1.65%,

08/15/2028

2.00%,

01/15/2032

2.20%,

02/21/2027

2.45%,

02/21/2030

3.00%,

02/22/2029

3.00%,

01/15/2052

3.15%,

02/21/2040

3.38%,

02/21/2050

4.20%,

03/01/2033

4.20%,

02/22/2052

4.40%,

05/01/2045

4.66%,

06/15/2051

4.88%,

03/01/2053

5.15%,

03/02/2028

5.25%,

03/02/2030

5.25%,

03/02/2033

5.60%,

03/02/2043

5.65%,

03/02/2053

5.75%,

03/02/2063

Baxalta

Inc

5.25%,

06/23/2045

Biogen

Inc

2.25%,

05/01/2030

5.20%,

09/15/2045

Gilead

Sciences

Inc

1.65%,

10/01/2030

2.60%,

10/01/2040

2.80%,

10/01/2050

2.95%,

03/01/2027

4.00%,

09/01/2036

4.60%,

09/01/2035

5.10%,

06/15/2035

5.25%,

10/15/2033

5.50%,

11/15/2054

5.55%,

10/15/2053

Royalty

Pharma

PLC

1.75%,

09/02/2027

2.20%,

09/02/2030

3.30%,

09/02/2040

5.95%,

09/25/2055

$

6,170

Building

Materials

-

.21

%

Carrier

Global

Corp

2.49%,

02/15/2027

2.72%,

02/15/2030

3.38%,

04/05/2040

3.58%,

04/05/2050

5.90%,

03/15/2034

6.20%,

03/15/2054

CRH

America

Finance

Inc

4.40%,

02/09/2031

5.50%,

01/09/2035

5.60%,

02/09/2056

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Building

Materials

(continued)

Johnson

Controls

International

plc

4.50%,

02/15/2047

$

$

Johnson

Controls

International

plc

/

Tyco

Fire

&

Security

Finance

SCA

2.00%,

09/16/2031

Martin

Marietta

Materials

Inc

2.50%,

03/15/2030

3.20%,

07/15/2051

5.15%,

12/01/2034

Masco

Corp

1.50%,

02/15/2028

Owens

Corning

5.50%,

06/15/2027

5.70%,

06/15/2034

Trane

Technologies

Financing

Ltd

3.80%,

03/21/2029

5.10%,

06/13/2034

Vulcan

Materials

Co

3.50%,

06/01/2030

5.35%,

12/01/2034

$

3,705

Chemicals

-

.26

%

Air

Products

and

Chemicals

Inc

2.80%,

05/15/2050

4.60%,

02/08/2029

4.80%,

03/03/2033

4.90%,

10/11/2032

Albemarle

Corp

5.45%,

12/01/2044

Dow

Chemical

Co/The

2.10%,

11/15/2030

3.60%,

11/15/2050

4.38%,

11/15/2042

4.80%,

05/15/2049

5.15%,

02/15/2034

(d) 155

5.65%,

03/15/2036

(d) 105

9.40%,

05/15/2039

DuPont

de

Nemours

Inc

4.73%,

11/15/2028

(g) 97

Eastman

Chemical

Co

4.80%,

09/01/2042

Ecolab

Inc

1.30%,

01/30/2031

1.65%,

02/01/2027

2.75%,

08/18/2055

4.30%,

06/15/2028

4.80%,

03/24/2030

5.00%,

09/01/2035

LYB

International

Finance

III

LLC

2.25%,

10/01/2030

3.63%,

04/01/2051

4.20%,

10/15/2049

5.63%,

05/15/2033

(d) 150

Nutrien

Ltd

4.20%,

04/01/2029

4.50%,

03/12/2027

5.40%,

06/21/2034

5.80%,

03/27/2053

Sherwin-Williams

Co/The

2.20%,

03/15/2032

2.30%,

05/15/2030

2.95%,

08/15/2029

3.30%,

05/15/2050

3.80%,

08/15/2049

4.30%,

08/15/2028

Westlake

Corp

3.13%,

08/15/2051

$

4,716

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Commercial

Mortgage

Backed

Securities

-

.84

%

BANK

2018-BNK10

3.69%,

02/15/2061

$

1,850

$

1,834

CFCRE

Commercial

Mortgage

Trust

2016-C4

3.28%,

05/10/2058

642

641

Citigroup

Commercial

Mortgage

Trust

2016-GC36

3.62%,

02/10/2049

Fannie

Mae-Aces

2.42%,

10/25/2026

(h) 640

633

2.86%,

02/25/2027

(h) 481

2.96%,

02/25/2027

(h) 762

754

2.98%,

12/25/2027

(h) 597

589

3.35%,

07/25/2028

(h) 1,947

1,931

Freddie

Mac

Multifamily

Structured

Pass

Through

Certificates

2.67%,

03/25/2026

941

937

3.41%,

12/25/2026

1,492

1,485

GS

Mortgage

Securities

Trust

2015-GC34

3.51%,

10/10/2048

GS

Mortgage

Securities

Trust

2017-GS5

3.47%,

03/10/2050

GS

Mortgage

Securities

Trust

2018-GS9

3.99%,

03/10/2051

(h) 1,500

1,492

Morgan

Stanley

Capital

I

Trust

2017-H1

3.26%,

06/15/2050

2,500

2,474

SG

Commercial

Mortgage

Securities

Trust

2016-C5

3.06%,

10/10/2048

1,000

990

$

15,095

Commercial

Services

-

.20

%

American

University/The

3.67%,

04/01/2049

California

Institute

of

Technology

4.32%,

08/01/2045

Global

Payments

Inc

3.20%,

08/15/2029

4.15%,

08/15/2049

4.50%,

11/15/2028

4.88%,

11/15/2030

5.20%,

11/15/2032

5.55%,

11/15/2035

Massachusetts

Institute

of

Technology

3.89%,

07/01/2116

4.68%,

07/01/2114

Moody's

Corp

4.25%,

08/08/2032

5.00%,

08/05/2034

5.25%,

07/15/2044

PayPal

Holdings

Inc

2.30%,

06/01/2030

2.85%,

10/01/2029

3.90%,

06/01/2027

4.40%,

06/01/2032

5.50%,

06/01/2054

S&P

Global

Inc

1.25%,

08/15/2030

2.45%,

03/01/2027

2.50%,

12/01/2029

3.25%,

12/01/2049

3.70%,

03/01/2052

5.25%,

09/15/2033

TR

Finance

LLC

5.85%,

04/15/2040

University

of

Southern

California

5.25%,

10/01/2111

William

Marsh

Rice

University

3.57%,

05/15/2045

$

3,672

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Computers

-

.53

%

Apple

Inc

1.20%,

02/08/2028

$

$

1.40%,

08/05/2028

1.65%,

05/11/2030

1.65%,

02/08/2031

2.20%,

09/11/2029

2.65%,

05/11/2050

2.70%,

08/05/2051

2.80%,

02/08/2061

2.90%,

09/12/2027

2.95%,

09/11/2049

3.20%,

05/11/2027

3.25%,

08/08/2029

3.35%,

02/09/2027

3.45%,

02/09/2045

3.75%,

09/12/2047

3.75%,

11/13/2047

3.85%,

05/04/2043

3.95%,

08/08/2052

4.20%,

05/12/2030

4.30%,

05/10/2033

(d) 150

4.50%,

05/12/2032

4.65%,

02/23/2046

4.75%,

05/12/2035

Dell

International

LLC

/

EMC

Corp

3.38%,

12/15/2041

3.45%,

12/15/2051

4.35%,

02/01/2030

4.50%,

02/15/2031

4.75%,

04/01/2028

5.10%,

02/15/2036

5.25%,

02/01/2028

5.30%,

04/01/2032

5.40%,

04/15/2034

8.10%,

07/15/2036

8.35%,

07/15/2046

Hewlett

Packard

Enterprise

Co

4.05%,

09/15/2027

4.55%,

10/15/2029

4.85%,

10/15/2031

5.00%,

10/15/2034

6.20%,

10/15/2035

6.35%,

10/15/2045

HP

Inc

3.00%,

06/17/2027

4.75%,

01/15/2028

6.00%,

09/15/2041

6.10%,

04/25/2035

(d) 115

IBM

International

Capital

Pte

Ltd

4.75%,

02/05/2031

4.90%,

02/05/2034

International

Business

Machines

Corp

2.20%,

02/09/2027

3.50%,

05/15/2029

4.00%,

06/20/2042

4.15%,

05/15/2039

4.25%,

05/15/2049

4.40%,

07/27/2032

4.50%,

02/06/2028

4.65%,

02/10/2028

4.70%,

02/19/2046

5.10%,

02/06/2053

5.60%,

11/30/2039

5.70%,

02/10/2055

5.88%,

11/29/2032

6.22%,

08/01/2027

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Computers

(continued)

NetApp

Inc

2.38%,

06/22/2027

$

$

$

9,485

Consumer

Products

-

.01

%

Church

&

Dwight

Co

Inc

3.95%,

08/01/2047

Cosmetics

&

Personal

Care

-

.14

%

Colgate-Palmolive

Co

4.20%,

05/01/2030

Estee

Lauder

Cos

Inc/The

1.95%,

03/15/2031

2.38%,

12/01/2029

Haleon

US

Capital

LLC

3.63%,

03/24/2032

Kenvue

Inc

4.85%,

05/22/2032

4.90%,

03/22/2033

5.05%,

03/22/2028

5.05%,

03/22/2053

5.10%,

03/22/2043

Procter

&

Gamble

Co/The

3.55%,

03/25/2040

4.10%,

11/03/2032

4.60%,

05/01/2035

Unilever

Capital

Corp

1.38%,

09/14/2030

4.63%,

08/12/2034

4.88%,

09/08/2028

5.90%,

11/15/2032

$

2,560

Diversified

Financial

Services

-

.75

%

AerCap

Ireland

Capital

DAC

/

AerCap

Global

Aviation

Trust

3.00%,

10/29/2028

3.30%,

01/30/2032

3.40%,

10/29/2033

3.88%,

01/23/2028

4.38%,

11/15/2030

4.88%,

04/01/2028

4.95%,

09/10/2034

5.10%,

01/19/2029

5.38%,

12/15/2031

6.10%,

01/15/2027

Air

Lease

Corp

2.10%,

09/01/2028

2.88%,

01/15/2032

3.25%,

10/01/2029

5.10%,

03/01/2029

5.20%,

07/15/2031

Ally

Financial

Inc

2.20%,

11/02/2028

4.75%,

06/09/2027

5.55%,

07/31/2033

(e) 100

Secured

Overnight

Financing

Rate

+

1.78%

8.00%,

11/01/2031

American

Express

Co

3.30%,

05/03/2027

4.05%,

12/03/2042

4.73%,

04/25/2029

(e) 230

Secured

Overnight

Financing

Rate

+

1.26%

4.80%,

10/24/2036

(e) 95

Secured

Overnight

Financing

Rate

+

1.24%

4.92%,

07/20/2033

(e) 210

Secured

Overnight

Financing

Rate

+

1.22%

5.09%,

01/30/2031

(e) 190

Secured

Overnight

Financing

Rate

+

1.02%

5.10%,

02/16/2028

(e) 155

Secured

Overnight

Financing

Rate

+

1.00%

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Diversified

Financial

Services

(continued)

American

Express

Co

(continued)

5.28%,

07/27/2029

(e) $

$

Secured

Overnight

Financing

Rate

+

1.28%

5.28%,

07/26/2035

(e) 215

Secured

Overnight

Financing

Rate

+

1.42%

5.53%,

04/25/2030

(e) 150

Secured

Overnight

Financing

Rate

+

1.09%

5.67%,

04/25/2036

(e) 110

Secured

Overnight

Financing

Rate

+

1.79%

6.49%,

10/30/2031

(e) 75

Secured

Overnight

Financing

Rate

+

1.94%

BlackRock

Funding

Inc

5.35%,

01/08/2055

Blackrock

Inc

2.10%,

02/25/2032

2.40%,

04/30/2030

Capital

One

Financial

Corp

2.36%,

07/29/2032

(e) 190

Secured

Overnight

Financing

Rate

+

1.34%

4.10%,

02/09/2027

4.49%,

09/11/2031

(e) 105

Secured

Overnight

Financing

Rate

+

1.25%

4.93%,

05/10/2028

(e) 255

Secured

Overnight

Financing

Rate

+

2.06%

5.20%,

09/11/2036

(e) 105

Secured

Overnight

Financing

Rate

+

1.63%

5.46%,

07/26/2030

(e) 70

Secured

Overnight

Financing

Rate

+

1.56%

5.70%,

02/01/2030

(e) 155

Secured

Overnight

Financing

Rate

+

1.91%

5.82%,

02/01/2034

(e) 150

Secured

Overnight

Financing

Rate

+

2.60%

5.88%,

07/26/2035

(e) 70

Secured

Overnight

Financing

Rate

+

1.99%

6.05%,

02/01/2035

(e) 75

Secured

Overnight

Financing

Rate

+

2.26%

6.18%,

01/30/2036

(e) 65

Secured

Overnight

Financing

Rate

+

2.04%

6.31%,

06/08/2029

(e) 150

Secured

Overnight

Financing

Rate

+

2.64%

7.62%,

10/30/2031

(e) 225

Secured

Overnight

Financing

Rate

+

3.07%

Charles

Schwab

Corp/The

1.65%,

03/11/2031

2.00%,

03/20/2028

4.91%,

11/14/2036

(e) 95

Secured

Overnight

Financing

Rate

+

1.23%

5.64%,

05/19/2029

(e) 150

Secured

Overnight

Financing

Rate

+

2.21%

6.14%,

08/24/2034

(e) 155

Secured

Overnight

Financing

Rate

+

2.01%

6.20%,

11/17/2029

(e) 150

Secured

Overnight

Financing

Rate

+

1.88%

Intercontinental

Exchange

Inc

2.10%,

06/15/2030

2.65%,

09/15/2040

3.00%,

09/15/2060

3.95%,

12/01/2028

4.00%,

09/15/2027

4.25%,

09/21/2048

4.95%,

06/15/2052

Jefferies

Financial

Group

Inc

2.63%,

10/15/2031

4.15%,

01/23/2030

6.50%,

01/20/2043

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Diversified

Financial

Services

(continued)

Mastercard

Inc

2.00%,

11/18/2031

$

$

2.95%,

03/15/2051

3.35%,

03/26/2030

3.85%,

03/26/2050

4.55%,

03/15/2028

4.55%,

01/15/2035

Nasdaq

Inc

2.50%,

12/21/2040

5.35%,

06/28/2028

5.95%,

08/15/2053

Nomura

Holdings

Inc

2.68%,

07/16/2030

5.84%,

01/18/2028

6.09%,

07/12/2033

Synchrony

Financial

5.02%,

07/29/2029

(e) 100

Secured

Overnight

Financing

Rate

+

1.40%

Visa

Inc

1.90%,

04/15/2027

2.05%,

04/15/2030

2.70%,

04/15/2040

3.65%,

09/15/2047

4.15%,

12/14/2035

4.30%,

12/14/2045

Western

Union

Co/The

6.20%,

11/17/2036

(d) 200

$

13,426

Electric

-

.14

%

AEP

Texas

Inc

2.10%,

07/01/2030

3.45%,

01/15/2050

3.45%,

05/15/2051

4.70%,

05/15/2032

5.25%,

05/15/2052

AEP

Transmission

Co

LLC

2.75%,

08/15/2051

4.00%,

12/01/2046

4.50%,

06/15/2052

5.40%,

03/15/2053

AES

Corp/The

2.45%,

01/15/2031

Alabama

Power

Co

1.45%,

09/15/2030

3.13%,

07/15/2051

4.30%,

03/15/2031

Ameren

Corp

1.75%,

03/15/2028

5.00%,

01/15/2029

Ameren

Illinois

Co

3.25%,

03/15/2050

3.85%,

09/01/2032

5.63%,

03/01/2055

American

Electric

Power

Co

Inc

2.30%,

03/01/2030

5.63%,

03/01/2033

6.05%,

03/15/2056

(e) 100

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.94%

Appalachian

Power

Co

3.30%,

06/01/2027

7.00%,

04/01/2038

Arizona

Public

Service

Co

2.60%,

08/15/2029

2.65%,

09/15/2050

4.50%,

04/01/2042

5.90%,

08/15/2055

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Electric

(continued)

Baltimore

Gas

and

Electric

Co

2.25%,

06/15/2031

$

$

4.55%,

06/01/2052

5.45%,

06/01/2035

5.65%,

06/01/2054

Berkshire

Hathaway

Energy

Co

1.65%,

05/15/2031

2.85%,

05/15/2051

3.80%,

07/15/2048

4.60%,

05/01/2053

5.15%,

11/15/2043

6.13%,

04/01/2036

CenterPoint

Energy

Houston

Electric

LLC

3.35%,

04/01/2051

4.25%,

02/01/2049

4.85%,

10/01/2052

4.95%,

04/01/2033

4.95%,

08/15/2035

5.20%,

10/01/2028

CenterPoint

Energy

Inc

2.95%,

03/01/2030

CMS

Energy

Corp

3.75%,

12/01/2050

(e) 180

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

2.90%

Commonwealth

Edison

Co

3.00%,

03/01/2050

3.13%,

03/15/2051

5.30%,

06/01/2034

5.30%,

02/01/2053

5.65%,

06/01/2054

5.95%,

06/01/2055

Connecticut

Light

and

Power

Co/The

2.05%,

07/01/2031

3.20%,

03/15/2027

4.00%,

04/01/2048

4.95%,

01/15/2030

Consolidated

Edison

Co

of

New

York

Inc

3.00%,

12/01/2060

3.70%,

11/15/2059

3.88%,

06/15/2047

4.20%,

03/15/2042

4.30%,

12/01/2056

5.20%,

03/01/2033

5.75%,

11/15/2055

5.85%,

03/15/2036

6.15%,

11/15/2052

6.75%,

04/01/2038

Consumers

Energy

Co

4.20%,

09/01/2052

4.60%,

05/30/2029

4.90%,

02/15/2029

5.05%,

05/15/2035

Dayton

Power

&

Light

Co/The

4.55%,

08/15/2030

(g) 30

Dominion

Energy

Inc

3.30%,

04/15/2041

3.38%,

04/01/2030

4.60%,

05/15/2028

4.70%,

12/01/2044

4.90%,

08/01/2041

5.38%,

11/15/2032

5.45%,

03/15/2035

5.95%,

06/15/2035

DTE

Electric

Co

1.90%,

04/01/2028

2.25%,

03/01/2030

2.63%,

03/01/2031

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Electric

(continued)

DTE

Electric

Co

(continued)

3.95%,

03/01/2049

$

$

5.20%,

03/01/2034

5.25%,

05/15/2035

5.40%,

04/01/2053

DTE

Energy

Co

4.88%,

06/01/2028

5.05%,

10/01/2035

5.20%,

04/01/2030

Duke

Energy

Carolinas

LLC

4.00%,

09/30/2042

4.95%,

01/15/2033

5.25%,

03/15/2035

5.30%,

02/15/2040

5.35%,

01/15/2053

5.40%,

01/15/2054

Duke

Energy

Corp

3.15%,

08/15/2027

3.30%,

06/15/2041

3.50%,

06/15/2051

3.75%,

09/01/2046

4.50%,

08/15/2032

4.85%,

01/05/2029

5.00%,

08/15/2052

5.45%,

06/15/2034

5.70%,

09/15/2055

5.80%,

06/15/2054

6.10%,

09/15/2053

Duke

Energy

Florida

LLC

1.75%,

06/15/2030

2.50%,

12/01/2029

3.40%,

10/01/2046

4.20%,

12/01/2030

5.65%,

04/01/2040

5.88%,

11/15/2033

5.95%,

11/15/2052

6.40%,

06/15/2038

Duke

Energy

Indiana

LLC

2.75%,

04/01/2050

5.40%,

04/01/2053

5.90%,

05/15/2055

6.12%,

10/15/2035

Duke

Energy

Progress

LLC

2.50%,

08/15/2050

5.55%,

03/15/2055

Emera

US

Finance

LP

4.75%,

06/15/2046

Entergy

Arkansas

LLC

2.65%,

06/15/2051

5.15%,

01/15/2033

Entergy

Corp

1.90%,

06/15/2028

2.40%,

06/15/2031

Entergy

Louisiana

LLC

2.90%,

03/15/2051

3.10%,

06/15/2041

4.75%,

09/15/2052

5.15%,

09/15/2034

5.80%,

03/15/2055

Entergy

Texas

Inc

1.75%,

03/15/2031

4.00%,

03/30/2029

4.50%,

03/30/2039

Evergy

Kansas

Central

Inc

5.25%,

03/15/2035

5.70%,

03/15/2053

Evergy

Metro

Inc

5.13%,

08/15/2035

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Electric

(continued)

Eversource

Energy

1.65%,

08/15/2030

$

$

4.45%,

12/15/2030

5.00%,

01/01/2027

5.13%,

05/15/2033

Exelon

Corp

3.35%,

03/15/2032

4.45%,

04/15/2046

5.13%,

03/15/2031

5.15%,

03/15/2029

5.63%,

06/15/2035

6.50%,

03/15/2055

(e) 55

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.98%

FirstEnergy

Transmission

LLC

4.75%,

01/15/2033

(g) 100

Florida

Power

&

Light

Co

3.70%,

12/01/2047

4.05%,

10/01/2044

4.40%,

05/15/2028

4.70%,

02/15/2036

4.80%,

05/15/2033

5.10%,

04/01/2033

5.30%,

06/15/2034

5.60%,

06/15/2054

5.69%,

03/01/2040

5.70%,

03/15/2055

Georgia

Power

Co

4.30%,

03/15/2042

4.55%,

03/15/2030

4.65%,

05/16/2028

4.70%,

05/15/2032

5.50%,

10/01/2055

Iberdrola

International

BV

6.75%,

07/15/2036

Interstate

Power

and

Light

Co

2.30%,

06/01/2030

4.10%,

09/26/2028

5.60%,

06/29/2035

5.60%,

10/01/2055

Jersey

Central

Power

&

Light

Co

4.40%,

01/15/2031

(g) 105

Kentucky

Utilities

Co

3.30%,

06/01/2050

5.85%,

08/15/2055

MidAmerican

Energy

Co

3.15%,

04/15/2050

3.65%,

04/15/2029

4.25%,

07/15/2049

5.30%,

02/01/2055

Mississippi

Power

Co

4.25%,

03/15/2042

National

Rural

Utilities

Cooperative

Finance

Corp

2.40%,

03/15/2030

4.12%,

09/16/2027

4.15%,

08/25/2028

4.15%,

12/15/2032

4.80%,

03/15/2028

5.00%,

02/07/2031

5.15%,

06/15/2029

Nevada

Power

Co

2.40%,

05/01/2030

NextEra

Energy

Capital

Holdings

Inc

1.90%,

06/15/2028

2.25%,

06/01/2030

2.75%,

11/01/2029

4.69%,

09/01/2027

4.90%,

02/28/2028

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Electric

(continued)

NextEra

Energy

Capital

Holdings

Inc

(continued)

4.90%,

03/15/2029

$

$

5.00%,

07/15/2032

5.05%,

03/15/2030

5.25%,

03/15/2034

5.25%,

02/28/2053

5.45%,

03/15/2035

5.65%,

05/01/2079

(e) 250

Month

USD

LIBOR

+

3.16%

6.50%,

08/15/2055

(e) 125

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.98%

Northern

States

Power

Co/MN

2.90%,

03/01/2050

3.40%,

08/15/2042

5.10%,

05/15/2053

5.35%,

11/01/2039

5.65%,

05/15/2055

NSTAR

Electric

Co

4.55%,

06/01/2052

4.95%,

09/15/2052

5.20%,

03/01/2035

5.40%,

06/01/2034

Ohio

Power

Co

1.63%,

01/15/2031

Oncor

Electric

Delivery

Co

LLC

4.15%,

06/01/2032

4.30%,

05/15/2028

4.50%,

03/20/2027

(g) 120

4.55%,

09/15/2032

4.60%,

06/01/2052

4.65%,

11/01/2029

5.25%,

09/30/2040

5.55%,

06/15/2054

Pacific

Gas

and

Electric

Co

2.10%,

08/01/2027

2.50%,

02/01/2031

3.30%,

08/01/2040

3.50%,

08/01/2050

4.20%,

06/01/2041

5.05%,

10/15/2032

5.70%,

03/01/2035

5.80%,

05/15/2034

5.90%,

06/15/2032

5.90%,

10/01/2054

6.10%,

01/15/2029

6.75%,

01/15/2053

PacifiCorp

2.90%,

06/15/2052

5.30%,

02/15/2031

5.35%,

12/01/2053

5.50%,

05/15/2054

6.25%,

10/15/2037

PECO

Energy

Co

2.80%,

06/15/2050

2.85%,

09/15/2051

4.38%,

08/15/2052

4.60%,

05/15/2052

4.88%,

09/15/2035

4.90%,

06/15/2033

PPL

Electric

Utilities

Corp

3.00%,

10/01/2049

3.95%,

06/01/2047

4.85%,

02/15/2034

5.00%,

05/15/2033

Progress

Energy

Inc

7.75%,

03/01/2031

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Electric

(continued)

Public

Service

Co

of

Colorado

1.88%,

06/15/2031

$

$

2.70%,

01/15/2051

4.50%,

06/01/2052

5.15%,

09/15/2035

5.25%,

04/01/2053

5.35%,

05/15/2034

5.85%,

05/15/2055

Public

Service

Co

of

New

Hampshire

4.40%,

07/01/2028

Public

Service

Co

of

Oklahoma

5.20%,

01/15/2035

5.25%,

01/15/2033

Public

Service

Electric

and

Gas

Co

3.00%,

05/15/2027

3.15%,

01/01/2050

4.65%,

03/15/2033

4.85%,

08/01/2034

4.90%,

08/15/2035

5.30%,

08/01/2054

5.45%,

08/01/2053

Public

Service

Enterprise

Group

Inc

4.90%,

03/15/2030

5.88%,

10/15/2028

6.13%,

10/15/2033

Puget

Sound

Energy

Inc

2.89%,

09/15/2051

3.25%,

09/15/2049

5.60%,

09/15/2055

5.80%,

03/15/2040

San

Diego

Gas

&

Electric

Co

1.70%,

10/01/2030

3.32%,

04/15/2050

3.70%,

03/15/2052

Sempra

4.00%,

02/01/2048

6.00%,

10/15/2039

6.55%,

04/01/2055

(e) 370

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

2.14%

Southern

California

Edison

Co

2.25%,

06/01/2030

2.85%,

08/01/2029

3.45%,

02/01/2052

3.65%,

02/01/2050

4.00%,

04/01/2047

4.70%,

06/01/2027

4.88%,

02/01/2027

5.30%,

03/01/2028

5.45%,

06/01/2031

5.45%,

03/01/2035

5.50%,

03/15/2040

5.65%,

10/01/2028

5.70%,

03/01/2053

5.85%,

11/01/2027

5.90%,

03/01/2055

5.95%,

02/01/2038

Southern

Co/The

1.75%,

03/15/2028

5.20%,

06/15/2033

5.50%,

03/15/2029

5.70%,

10/15/2032

Southern

Power

Co

4.90%,

10/01/2035

Southwestern

Electric

Power

Co

4.10%,

09/15/2028

6.20%,

03/15/2040

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Electric

(continued)

Southwestern

Public

Service

Co

6.00%,

06/01/2054

$

$

Tampa

Electric

Co

3.45%,

03/15/2051

4.35%,

05/15/2044

Tucson

Electric

Power

Co

1.50%,

08/01/2030

3.25%,

05/01/2051

Union

Electric

Co

2.15%,

03/15/2032

2.63%,

03/15/2051

Virginia

Electric

and

Power

Co

2.30%,

11/15/2031

2.45%,

12/15/2050

2.95%,

11/15/2051

3.75%,

05/15/2027

4.20%,

05/15/2045

5.05%,

08/15/2034

5.45%,

04/01/2053

5.55%,

08/15/2054

5.60%,

09/15/2055

6.00%,

05/15/2037

8.88%,

11/15/2038

WEC

Energy

Group

Inc

1.38%,

10/15/2027

2.20%,

12/15/2028

Wisconsin

Electric

Power

Co

4.15%,

10/15/2030

4.75%,

09/30/2032

Wisconsin

Public

Service

Corp

2.85%,

12/01/2051

4.55%,

12/01/2029

Xcel

Energy

Inc

1.75%,

03/15/2027

2.60%,

12/01/2029

4.60%,

06/01/2032

4.75%,

03/21/2028

$

38,541

Electrical

Components

&

Equipment

-

.02

%

Emerson

Electric

Co

2.20%,

12/21/2031

Electronics

-

.12

%

Amphenol

Corp

3.90%,

11/15/2028

4.13%,

11/15/2030

4.40%,

02/15/2033

5.00%,

01/15/2035

5.05%,

04/05/2027

5.30%,

11/15/2055

Honeywell

International

Inc

1.10%,

03/01/2027

1.75%,

09/01/2031

1.95%,

06/01/2030

2.70%,

08/15/2029

4.25%,

01/15/2029

4.70%,

02/01/2030

5.00%,

02/15/2033

5.00%,

03/01/2035

5.25%,

03/01/2054

Tyco

Electronics

Group

SA

7.13%,

10/01/2037

$

2,245

Environmental

Control

-

.13

%

Republic

Services

Inc

1.75%,

02/15/2032

2.30%,

03/01/2030

5.00%,

11/15/2029

5.00%,

04/01/2034

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Environmental

Control

(continued)

Republic

Services

Inc

(continued)

5.15%,

03/15/2035

$

$

Waste

Connections

Inc

2.20%,

01/15/2032

4.20%,

01/15/2033

Waste

Management

Inc

2.00%,

06/01/2029

4.15%,

04/15/2032

4.63%,

02/15/2033

4.65%,

03/15/2030

4.88%,

02/15/2029

4.95%,

07/03/2031

4.95%,

03/15/2035

5.35%,

10/15/2054

$

2,315

Finance

-

Mortgage

Loan/Banker

-

.27

%

Fannie

Mae

0.75%,

10/08/2027

0.88%,

08/05/2030

5.63%,

07/15/2037

6.63%,

11/15/2030

7.13%,

01/15/2030

7.25%,

05/15/2030

Federal

Home

Loan

Banks

3.25%,

11/16/2028

500

3.50%,

09/09/2027

3.50%,

10/04/2027

3.88%,

06/04/2027

4.00%,

03/10/2027

4.00%,

06/30/2028

4.13%,

01/15/2027

4.75%,

04/09/2027

5.50%,

07/15/2036

Freddie

Mac

6.25%,

07/15/2032

6.75%,

03/15/2031

577

657

$

4,859

Food

-

.33

%

Campbell's

Company/The

4.15%,

03/15/2028

Conagra

Brands

Inc

1.38%,

11/01/2027

4.85%,

11/01/2028

5.30%,

11/01/2038

5.40%,

11/01/2048

General

Mills

Inc

2.25%,

10/14/2031

4.88%,

01/30/2030

4.95%,

03/29/2033

5.50%,

10/17/2028

Hershey

Co/The

3.38%,

08/15/2046

J

M

Smucker

Co/The

2.13%,

03/15/2032

5.90%,

11/15/2028

6.50%,

11/15/2043

JBS

USA

Holding

Lux

Sarl

/

JBS

USA

Foods

Group

Holdings

Inc

/

JBS

USA

Food

Co

5.50%,

01/15/2036

(g) 105

6.25%,

03/01/2056

(g) 105

6.38%,

04/15/2066

(g) 105

JBS

USA

Holding

Lux

Sarl/

JBS

USA

Food

Co/

JBS

Lux

Co

Sarl

5.75%,

04/01/2033

6.50%,

12/01/2052

6.75%,

03/15/2034

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Food

(continued)

JBS

USA

LUX

Sarl

/

JBS

USA

Food

Co

/

JBS

USA

Foods

Group

6.38%,

02/25/2055

(g) $

$

Kellanova

2.10%,

06/01/2030

Koninklijke

Ahold

Delhaize

NV

5.70%,

10/01/2040

Kroger

Co/The

1.70%,

01/15/2031

3.70%,

08/01/2027

4.45%,

02/01/2047

5.00%,

09/15/2034

5.15%,

08/01/2043

5.40%,

07/15/2040

5.50%,

09/15/2054

5.65%,

09/15/2064

McCormick

&

Co

Inc/MD

1.85%,

02/15/2031

Mondelez

International

Inc

1.50%,

02/04/2031

2.63%,

03/17/2027

2.63%,

09/04/2050

4.25%,

05/06/2028

4.50%,

05/06/2030

4.75%,

08/28/2034

Sysco

Corp

2.40%,

02/15/2030

2.45%,

12/14/2031

4.50%,

04/01/2046

4.85%,

10/01/2045

5.38%,

09/21/2035

5.40%,

03/23/2035

5.75%,

01/17/2029

Tyson

Foods

Inc

4.55%,

06/02/2047

$

5,948

Forest

Products

&

Paper

-

.04

%

Georgia-Pacific

LLC

7.75%,

11/15/2029

International

Paper

Co

4.80%,

06/15/2044

Suzano

Austria

GmbH

2.50%,

09/15/2028

5.00%,

01/15/2030

Suzano

Netherlands

BV

5.50%,

01/15/2036

$

714

Gas

-

.17

%

Atmos

Energy

Corp

1.50%,

01/15/2031

3.38%,

09/15/2049

4.13%,

10/15/2044

5.45%,

01/15/2056

5.75%,

10/15/2052

5.90%,

11/15/2033

6.20%,

11/15/2053

CenterPoint

Energy

Resources

Corp

1.75%,

10/01/2030

4.40%,

07/01/2032

5.25%,

03/01/2028

NiSource

Inc

3.49%,

05/15/2027

3.60%,

05/01/2030

5.00%,

06/15/2052

5.25%,

03/30/2028

5.35%,

07/15/2035

5.40%,

06/30/2033

5.85%,

04/01/2055

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Gas

(continued)

Southern

California

Gas

Co

2.55%,

02/01/2030

$

$

5.05%,

09/01/2034

5.45%,

06/15/2035

5.75%,

06/01/2053

Southern

Co

Gas

Capital

Corp

1.75%,

01/15/2031

3.15%,

09/30/2051

5.10%,

09/15/2035

$

2,989

Hand

&

Machine

Tools

-

.02

%

Stanley

Black

&

Decker

Inc

2.30%,

03/15/2030

2.75%,

11/15/2050

$

Healthcare

-

Products

-

.27

%

Abbott

Laboratories

4.75%,

11/30/2036

4.90%,

11/30/2046

5.30%,

05/27/2040

Agilent

Technologies

Inc

2.10%,

06/04/2030

2.30%,

03/12/2031

Baxter

International

Inc

1.73%,

04/01/2031

1.92%,

02/01/2027

2.27%,

12/01/2028

Boston

Scientific

Corp

2.65%,

06/01/2030

4.70%,

03/01/2049

7.38%,

01/15/2040

Danaher

Corp

2.60%,

10/01/2050

DH

Europe

Finance

II

Sarl

2.60%,

11/15/2029

3.25%,

11/15/2039

GE

HealthCare

Technologies

Inc

5.50%,

06/15/2035

5.65%,

11/15/2027

5.86%,

03/15/2030

5.91%,

11/22/2032

6.38%,

11/22/2052

Koninklijke

Philips

NV

5.00%,

03/15/2042

Medtronic

Global

Holdings

SCA

4.25%,

03/30/2028

Medtronic

Inc

4.38%,

03/15/2035

Revvity

Inc

1.90%,

09/15/2028

Stryker

Corp

4.10%,

04/01/2043

4.63%,

03/15/2046

4.70%,

02/10/2028

4.85%,

12/08/2028

5.20%,

02/10/2035

Thermo

Fisher

Scientific

Inc

2.00%,

10/15/2031

2.60%,

10/01/2029

2.80%,

10/15/2041

4.20%,

03/01/2031

4.79%,

10/07/2035

4.80%,

11/21/2027

5.09%,

08/10/2033

5.40%,

08/10/2043

$

4,894

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Healthcare

-

Services

-

.84

%

Aetna

Inc

6.63%,

06/15/2036

$

$

6.75%,

12/15/2037

Baylor

Scott

&

White

Holdings

3.97%,

11/15/2046

Centene

Corp

4.63%,

12/15/2029

500

Cigna

Group/The

2.40%,

03/15/2030

3.20%,

03/15/2040

3.40%,

03/15/2051

4.38%,

10/15/2028

4.80%,

08/15/2038

4.80%,

07/15/2046

4.88%,

09/15/2032

4.90%,

12/15/2048

5.13%,

05/15/2031

5.25%,

01/15/2036

5.60%,

02/15/2054

6.00%,

01/15/2056

6.13%,

11/15/2041

CommonSpirit

Health

4.35%,

11/01/2042

Elevance

Health

Inc

2.88%,

09/15/2029

3.13%,

05/15/2050

3.60%,

03/15/2051

3.65%,

12/01/2027

4.38%,

12/01/2047

4.60%,

09/15/2032

4.63%,

05/15/2042

4.65%,

01/15/2043

4.75%,

02/15/2030

4.75%,

02/15/2033

5.20%,

02/15/2035

5.38%,

06/15/2034

5.65%,

06/15/2054

5.70%,

02/15/2055

6.10%,

10/15/2052

HCA

Inc

2.38%,

07/15/2031

3.38%,

03/15/2029

3.50%,

07/15/2051

4.38%,

03/15/2042

4.50%,

02/15/2027

5.00%,

03/01/2028

5.20%,

06/01/2028

5.45%,

04/01/2031

5.45%,

09/15/2034

5.50%,

03/01/2032

5.50%,

06/01/2033

5.60%,

04/01/2034

5.75%,

03/01/2035

5.95%,

09/15/2054

6.00%,

04/01/2054

Humana

Inc

1.35%,

02/03/2027

2.15%,

02/03/2032

3.13%,

08/15/2029

4.95%,

10/01/2044

5.50%,

03/15/2053

5.55%,

05/01/2035

Kaiser

Foundation

Hospitals

3.27%,

11/01/2049

4.15%,

05/01/2047

Laboratory

Corp

of

America

Holdings

2.95%,

12/01/2029

4.70%,

02/01/2045

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Healthcare

-

Services

(continued)

Mass

General

Brigham

Inc

3.19%,

07/01/2049

$

$

Quest

Diagnostics

Inc

2.95%,

06/30/2030

4.60%,

12/15/2027

5.00%,

12/15/2034

UnitedHealth

Group

Inc

2.75%,

05/15/2040

2.90%,

05/15/2050

3.05%,

05/15/2041

3.25%,

05/15/2051

3.45%,

01/15/2027

3.50%,

08/15/2039

3.70%,

05/15/2027

3.70%,

08/15/2049

4.25%,

01/15/2029

4.25%,

06/15/2048

4.40%,

06/15/2028

4.45%,

12/15/2048

4.60%,

04/15/2027

4.63%,

07/15/2035

4.70%,

04/15/2029

4.75%,

07/15/2045

4.75%,

05/15/2052

4.80%,

01/15/2030

4.95%,

01/15/2032

5.00%,

04/15/2034

5.15%,

07/15/2034

5.20%,

04/15/2063

5.25%,

02/15/2028

5.30%,

06/15/2035

5.35%,

02/15/2033

5.50%,

07/15/2044

5.50%,

04/15/2064

5.63%,

07/15/2054

5.88%,

02/15/2053

5.95%,

06/15/2055

6.50%,

06/15/2037

$

15,146

Home

Builders

-

.01

%

DR

Horton

Inc

1.40%,

10/15/2027

Insurance

-

.64

%

Allstate

Corp/The

1.45%,

12/15/2030

5.25%,

03/30/2033

American

International

Group

Inc

5.13%,

03/27/2033

5.45%,

05/07/2035

Aon

Corp

2.80%,

05/15/2030

Aon

Corp

/

Aon

Global

Holdings

PLC

2.60%,

12/02/2031

2.85%,

05/28/2027

2.90%,

08/23/2051

5.00%,

09/12/2032

5.35%,

02/28/2033

Aon

North

America

Inc

5.13%,

03/01/2027

5.15%,

03/01/2029

5.45%,

03/01/2034

5.75%,

03/01/2054

Arch

Capital

Finance

LLC

5.03%,

12/15/2046

Arch

Capital

Group

US

Inc

5.14%,

11/01/2043

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Insurance

(continued)

Arthur

J

Gallagher

&

Co

4.60%,

12/15/2027

$

$

4.85%,

12/15/2029

5.15%,

02/15/2035

5.55%,

02/15/2055

Athene

Holding

Ltd

4.13%,

01/12/2028

500

500

6.25%,

04/01/2054

6.63%,

05/19/2055

Berkshire

Hathaway

Finance

Corp

2.50%,

01/15/2051

2.85%,

10/15/2050

4.20%,

08/15/2048

4.25%,

01/15/2049

Berkshire

Hathaway

Inc

4.50%,

02/11/2043

Brown

&

Brown

Inc

4.90%,

06/23/2030

5.25%,

06/23/2032

5.55%,

06/23/2035

6.25%,

06/23/2055

Chubb

INA

Holdings

LLC

4.35%,

11/03/2045

4.65%,

08/15/2029

5.00%,

03/15/2034

6.50%,

05/15/2038

6.70%,

05/15/2036

Corebridge

Financial

Inc

3.85%,

04/05/2029

3.90%,

04/05/2032

6.05%,

09/15/2033

Equitable

Holdings

Inc

4.35%,

04/20/2028

Hartford

Insurance

Group

Inc/The

2.90%,

09/15/2051

3.60%,

08/19/2049

4.30%,

04/15/2043

Lincoln

National

Corp

7.00%,

06/15/2040

Loews

Corp

4.13%,

05/15/2043

Manulife

Financial

Corp

5.38%,

03/04/2046

Markel

Group

Inc

3.45%,

05/07/2052

Marsh

&

McLennan

Cos

Inc

4.38%,

03/15/2029

4.55%,

11/08/2027

4.85%,

11/15/2031

4.90%,

03/15/2049

5.00%,

03/15/2035

5.40%,

09/15/2033

5.40%,

03/15/2055

5.70%,

09/15/2053

6.25%,

11/01/2052

MetLife

Inc

4.05%,

03/01/2045

4.60%,

05/13/2046

4.88%,

11/13/2043

5.25%,

01/15/2054

5.30%,

12/15/2034

5.70%,

06/15/2035

6.40%,

12/15/2066

Progressive

Corp/The

3.20%,

03/26/2030

3.70%,

03/15/2052

4.35%,

04/25/2044

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Insurance

(continued)

Prudential

Financial

Inc

3.70%,

10/01/2050

(e) $

$

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

3.04%

3.70%,

03/13/2051

3.91%,

12/07/2047

5.20%,

03/14/2035

5.70%,

12/14/2036

5.70%,

09/15/2048

(e) 200

Month

USD

LIBOR

+

2.67%

Travelers

Cos

Inc/The

3.05%,

06/08/2051

4.00%,

05/30/2047

5.05%,

07/24/2035

5.45%,

05/25/2053

6.25%,

06/15/2037

6.75%,

06/20/2036

W

R

Berkley

Corp

4.00%,

05/12/2050

Willis

North

America

Inc

2.95%,

09/15/2029

3.88%,

09/15/2049

5.35%,

05/15/2033

XL

Group

Ltd

5.25%,

12/15/2043

$

11,615

Internet

-

.55

%

Alibaba

Group

Holding

Ltd

2.13%,

02/09/2031

4.20%,

12/06/2047

4.40%,

12/06/2057

Alphabet

Inc

0.80%,

08/15/2027

(d) 330

3.88%,

11/15/2028

4.00%,

05/15/2030

4.10%,

11/15/2030

4.38%,

11/15/2032

4.70%,

11/15/2035

5.25%,

05/15/2055

5.30%,

05/15/2065

5.35%,

11/15/2045

5.45%,

11/15/2055

Amazon.com

Inc

2.10%,

05/12/2031

2.88%,

05/12/2041

3.10%,

05/12/2051

3.15%,

08/22/2027

3.25%,

05/12/2061

3.30%,

04/13/2027

3.60%,

04/13/2032

3.88%,

08/22/2037

3.90%,

11/20/2028

3.95%,

04/13/2052

4.05%,

08/22/2047

4.35%,

03/20/2033

4.65%,

12/01/2029

4.65%,

11/20/2035

4.70%,

12/01/2032

4.80%,

12/05/2034

4.95%,

12/05/2044

5.45%,

11/20/2055

5.55%,

11/20/2065

Baidu

Inc

2.38%,

10/09/2030

eBay

Inc

2.60%,

05/10/2031

4.00%,

07/15/2042

5.95%,

11/22/2027

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Internet

(continued)

Expedia

Group

Inc

2.95%,

03/15/2031

$

$

Meta

Platforms

Inc

3.85%,

08/15/2032

4.20%,

11/15/2030

4.45%,

08/15/2052

4.60%,

11/15/2032

4.75%,

08/15/2034

4.88%,

11/15/2035

4.95%,

05/15/2033

5.40%,

08/15/2054

5.50%,

11/15/2045

5.55%,

08/15/2064

5.60%,

05/15/2053

5.63%,

11/15/2055

5.75%,

11/15/2065

Netflix

Inc

4.90%,

08/15/2034

5.88%,

11/15/2028

Uber

Technologies

Inc

4.15%,

01/15/2031

4.80%,

09/15/2035

$

9,826

Investment

Companies

-

.02

%

Ares

Capital

Corp

5.10%,

01/15/2031

5.50%,

09/01/2030

Blackstone

Private

Credit

Fund

5.05%,

09/10/2030

$

Iron

&

Steel

-

.08

%

ArcelorMittal

SA

6.00%,

06/17/2034

Nucor

Corp

3.13%,

04/01/2032

4.30%,

05/23/2027

Steel

Dynamics

Inc

1.65%,

10/15/2027

5.38%,

08/15/2034

5.75%,

05/15/2055

Vale

Overseas

Ltd

6.13%,

06/12/2033

6.40%,

06/28/2054

$

1,475

Lodging

-

.06

%

Hyatt

Hotels

Corp

5.25%,

06/30/2029

Marriott

International

Inc/MD

2.85%,

04/15/2031

5.00%,

10/15/2027

5.25%,

10/15/2035

5.35%,

03/15/2035

5.55%,

10/15/2028

$

1,136

Machinery

-

Construction

&

Mining

-

.07

%

Caterpillar

Financial

Services

Corp

1.10%,

09/14/2027

3.95%,

11/14/2028

4.50%,

01/08/2027

4.70%,

11/15/2029

5.00%,

05/14/2027

Caterpillar

Inc

2.60%,

04/09/2030

3.25%,

09/19/2049

3.80%,

08/15/2042

5.50%,

05/15/2055

$

1,251

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Machinery

-

Diversified

-

.16

%

Deere

&

Co

3.90%,

06/09/2042

$

$

5.45%,

01/16/2035

Dover

Corp

5.38%,

03/01/2041

Ingersoll

Rand

Inc

5.20%,

06/15/2027

5.31%,

06/15/2031

John

Deere

Capital

Corp

2.35%,

03/08/2027

2.80%,

07/18/2029

4.15%,

09/15/2027

4.35%,

09/15/2032

4.50%,

01/08/2027

4.55%,

06/05/2030

4.85%,

06/11/2029

4.90%,

06/11/2027

4.90%,

03/07/2031

4.95%,

07/14/2028

5.10%,

04/11/2034

Otis

Worldwide

Corp

2.57%,

02/15/2030

3.36%,

02/15/2050

5.13%,

09/04/2035

Rockwell

Automation

Inc

1.75%,

08/15/2031

2.80%,

08/15/2061

$

2,829

Media

-

.52

%

Charter

Communications

Operating

LLC

/

Charter

Communications

Operating

Capital

2.25%,

01/15/2029

2.30%,

02/01/2032

2.80%,

04/01/2031

3.50%,

06/01/2041

3.70%,

04/01/2051

3.85%,

04/01/2061

3.90%,

06/01/2052

4.40%,

12/01/2061

4.80%,

03/01/2050

5.75%,

04/01/2048

6.48%,

10/23/2045

6.55%,

06/01/2034

6.70%,

12/01/2055

Comcast

Corp

1.50%,

02/15/2031

(d) 165

2.35%,

01/15/2027

2.45%,

08/15/2052

2.65%,

02/01/2030

2.65%,

08/15/2062

2.89%,

11/01/2051

3.25%,

11/01/2039

3.40%,

07/15/2046

3.45%,

02/01/2050

3.55%,

05/01/2028

3.75%,

04/01/2040

3.90%,

03/01/2038

4.00%,

08/15/2047

4.00%,

03/01/2048

4.00%,

11/01/2049

4.15%,

10/15/2028

4.25%,

01/15/2033

4.55%,

01/15/2029

4.80%,

05/15/2033

4.95%,

05/15/2032

5.30%,

06/01/2034

5.35%,

05/15/2053

575

517

5.50%,

11/15/2032

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Media

(continued)

Comcast

Corp

(continued)

5.65%,

06/15/2035

$

$

5.65%,

06/01/2054

6.05%,

05/15/2055

7.05%,

03/15/2033

Fox

Corp

5.48%,

01/25/2039

5.58%,

01/25/2049

6.50%,

10/13/2033

NBCUniversal

Media

LLC

4.45%,

01/15/2043

Paramount

Global

4.20%,

05/19/2032

4.38%,

03/15/2043

4.85%,

07/01/2042

6.88%,

04/30/2036

7.88%,

07/30/2030

Time

Warner

Cable

Enterprises

LLC

8.38%,

07/15/2033

Time

Warner

Cable

LLC

5.50%,

09/01/2041

5.88%,

11/15/2040

6.55%,

05/01/2037

6.75%,

06/15/2039

7.30%,

07/01/2038

TWDC

Enterprises

Corp

3.70%,

12/01/2042

7.00%,

03/01/2032

Walt

Disney

Co/The

2.65%,

01/13/2031

2.75%,

09/01/2049

3.50%,

05/13/2040

3.60%,

01/13/2051

3.70%,

03/23/2027

4.63%,

03/23/2040

4.75%,

11/15/2046

4.95%,

10/15/2045

6.20%,

12/15/2034

6.40%,

12/15/2035

$

9,284

Metal

Fabrication

&

Hardware

-

.01

%

Precision

Castparts

Corp

4.38%,

06/15/2045

Mining

-

.16

%

Barrick

North

America

Finance

LLC

5.75%,

05/01/2043

Barrick

PD

Australia

Finance

Pty

Ltd

5.95%,

10/15/2039

BHP

Billiton

Finance

USA

Ltd

4.13%,

02/24/2042

4.90%,

02/28/2033

5.00%,

02/21/2030

5.00%,

02/15/2036

5.00%,

09/30/2043

5.25%,

09/08/2030

5.50%,

09/08/2053

Newmont

Corp

2.60%,

07/15/2032

Rio

Tinto

Alcan

Inc

6.13%,

12/15/2033

Rio

Tinto

Finance

USA

Ltd

2.75%,

11/02/2051

Rio

Tinto

Finance

USA

PLC

4.75%,

03/22/2042

4.88%,

03/14/2030

5.00%,

03/09/2033

5.25%,

03/14/2035

5.75%,

03/14/2055

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Mining

(continued)

Southern

Copper

Corp

5.88%,

04/23/2045

$

$

6.75%,

04/16/2040

$

2,925

Miscellaneous

Manufacturers

-

.11

%

3M

Co

2.38%,

08/26/2029

500

5.15%,

03/15/2035

Eaton

Corp

3.10%,

09/15/2027

4.00%,

11/02/2032

4.15%,

03/15/2033

4.15%,

11/02/2042

Parker-Hannifin

Corp

4.25%,

09/15/2027

4.50%,

09/15/2029

Teledyne

Technologies

Inc

2.25%,

04/01/2028

$

1,963

Oil

&

Gas

-

.78

%

BP

Capital

Markets

America

Inc

1.75%,

08/10/2030

2.72%,

01/12/2032

2.77%,

11/10/2050

2.94%,

06/04/2051

3.00%,

02/24/2050

3.00%,

03/17/2052

3.06%,

06/17/2041

3.54%,

04/06/2027

3.59%,

04/14/2027

4.70%,

04/10/2029

4.81%,

02/13/2033

4.89%,

09/11/2033

4.97%,

10/17/2029

4.99%,

04/10/2034

5.02%,

11/17/2027

5.23%,

11/17/2034

BP

Capital

Markets

PLC

3.72%,

11/28/2028

Canadian

Natural

Resources

Ltd

3.85%,

06/01/2027

4.95%,

06/01/2047

5.00%,

12/15/2029

6.25%,

03/15/2038

Chevron

Corp

2.00%,

05/11/2027

Chevron

USA

Inc

1.02%,

08/12/2027

4.05%,

08/13/2028

4.30%,

10/15/2030

4.69%,

04/15/2030

4.82%,

04/15/2032

4.85%,

10/15/2035

ConocoPhillips

Co

3.80%,

03/15/2052

4.03%,

03/15/2062

4.30%,

11/15/2044

4.70%,

01/15/2030

5.00%,

01/15/2035

5.05%,

09/15/2033

5.50%,

01/15/2055

5.55%,

03/15/2054

Devon

Energy

Corp

5.00%,

06/15/2045

5.20%,

09/15/2034

5.60%,

07/15/2041

5.75%,

09/15/2054

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Oil

&

Gas

(continued)

Diamondback

Energy

Inc

5.15%,

01/30/2030

$

$

5.20%,

04/18/2027

5.40%,

04/18/2034

5.75%,

04/18/2054

EOG

Resources

Inc

4.40%,

07/15/2028

4.40%,

01/15/2031

5.35%,

01/15/2036

5.65%,

12/01/2054

5.95%,

07/15/2055

Equinor

ASA

3.00%,

04/06/2027

3.25%,

11/18/2049

3.63%,

04/06/2040

4.25%,

06/02/2028

Exxon

Mobil

Corp

2.44%,

08/16/2029

2.61%,

10/15/2030

3.00%,

08/16/2039

3.10%,

08/16/2049

3.45%,

04/15/2051

4.23%,

03/19/2040

Hess

Corp

5.60%,

02/15/2041

7.13%,

03/15/2033

7.30%,

08/15/2031

Marathon

Petroleum

Corp

5.00%,

09/15/2054

Occidental

Petroleum

Corp

5.00%,

08/01/2027

5.20%,

08/01/2029

5.38%,

01/01/2032

6.05%,

10/01/2054

6.45%,

09/15/2036

6.63%,

09/01/2030

Phillips

2.15%,

12/15/2030

5.88%,

05/01/2042

Phillips

Co

4.95%,

12/01/2027

5.25%,

06/15/2031

5.50%,

03/15/2055

Pioneer

Natural

Resources

Co

1.90%,

08/15/2030

2.15%,

01/15/2031

Shell

Finance

US

Inc

2.38%,

11/07/2029

2.75%,

04/06/2030

3.13%,

11/07/2049

(g) 155

3.25%,

04/06/2050

4.00%,

05/10/2046

4.13%,

11/06/2030

4.38%,

05/11/2045

4.55%,

08/12/2043

4.75%,

01/06/2036

5.50%,

03/25/2040

(g) 25

6.38%,

12/15/2038

(g) 43

Shell

International

Finance

BV

2.88%,

11/26/2041

3.63%,

08/21/2042

Suncor

Energy

Inc

3.75%,

03/04/2051

4.00%,

11/15/2047

6.80%,

05/15/2038

6.85%,

06/01/2039

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Oil

&

Gas

(continued)

TotalEnergies

Capital

International

SA

2.83%,

01/10/2030

$

$

2.99%,

06/29/2041

3.13%,

05/29/2050

3.39%,

06/29/2060

3.46%,

07/12/2049

TotalEnergies

Capital

SA

5.15%,

04/05/2034

5.28%,

09/10/2054

5.43%,

09/10/2064

5.49%,

04/05/2054

Valero

Energy

Corp

2.80%,

12/01/2031

4.00%,

06/01/2052

6.63%,

06/15/2037

7.50%,

04/15/2032

Woodside

Finance

Ltd

5.40%,

05/19/2030

6.00%,

05/19/2035

$

13,995

Oil

&

Gas

Services

-

.06

%

Baker

Hughes

Holdings

LLC

/

Baker

Hughes

Co-

Obligor

Inc

3.14%,

11/07/2029

3.34%,

12/15/2027

4.08%,

12/15/2047

Halliburton

Co

4.50%,

11/15/2041

4.85%,

11/15/2035

7.45%,

09/15/2039

NOV

Inc

3.60%,

12/01/2029

3.95%,

12/01/2042

$

1,084

Packaging

&

Containers

-

.04

%

Packaging

Corp

of

America

3.00%,

12/15/2029

3.05%,

10/01/2051

Smurfit

Westrock

Financing

DAC

5.42%,

01/15/2035

$

677

Pharmaceuticals

-

.33

%

AbbVie

Inc

3.20%,

11/21/2029

4.05%,

11/21/2039

4.25%,

11/21/2049

4.30%,

05/14/2036

4.40%,

11/06/2042

4.45%,

05/14/2046

4.50%,

05/14/2035

4.63%,

10/01/2042

4.75%,

03/15/2045

4.80%,

03/15/2027

4.80%,

03/15/2029

4.88%,

11/14/2048

4.95%,

03/15/2031

5.05%,

03/15/2034

5.20%,

03/15/2035

5.40%,

03/15/2054

5.60%,

03/15/2055

Astrazeneca

Finance

LLC

1.75%,

05/28/2028

4.80%,

02/26/2027

4.85%,

02/26/2029

4.88%,

03/03/2028

4.88%,

03/03/2033

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Pharmaceuticals

(continued)

AstraZeneca

PLC

4.00%,

09/18/2042

$

$

4.38%,

11/16/2045

4.38%,

08/17/2048

6.45%,

09/15/2037

Becton

Dickinson

&

Co

1.96%,

02/11/2031

2.82%,

05/20/2030

3.70%,

06/06/2027

4.67%,

06/06/2047

4.69%,

12/15/2044

5.08%,

06/07/2029

Bristol-Myers

Squibb

Co

1.13%,

11/13/2027

2.55%,

11/13/2050

2.95%,

03/15/2032

3.25%,

08/01/2042

3.55%,

03/15/2042

3.70%,

03/15/2052

4.13%,

06/15/2039

4.25%,

10/26/2049

4.35%,

11/15/2047

5.20%,

02/22/2034

5.50%,

02/22/2044

5.55%,

02/22/2054

5.75%,

02/01/2031

Cardinal

Health

Inc

3.41%,

06/15/2027

4.50%,

09/15/2030

4.60%,

03/15/2043

CVS

Health

Corp

1.30%,

08/21/2027

1.75%,

08/21/2030

1.88%,

02/28/2031

3.25%,

08/15/2029

4.30%,

03/25/2028

4.78%,

03/25/2038

5.00%,

01/30/2029

5.00%,

09/15/2032

5.05%,

03/25/2048

880

776

5.13%,

07/20/2045

5.25%,

02/21/2033

5.30%,

06/01/2033

5.30%,

12/05/2043

5.55%,

06/01/2031

5.63%,

02/21/2053

5.70%,

06/01/2034

5.88%,

06/01/2053

6.25%,

09/15/2065

Eli

Lilly

&

Co

3.95%,

03/15/2049

4.00%,

10/15/2028

4.55%,

02/12/2028

4.55%,

10/15/2032

4.60%,

08/14/2034

4.70%,

02/27/2033

4.70%,

02/09/2034

4.75%,

02/12/2030

4.88%,

02/27/2053

5.00%,

02/09/2054

5.05%,

08/14/2054

5.60%,

02/12/2065

5.65%,

10/15/2065

GlaxoSmithKline

Capital

Inc

4.50%,

04/15/2030

4.88%,

04/15/2035

5.38%,

04/15/2034

500

528

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Pharmaceuticals

(continued)

Johnson

&

Johnson

3.63%,

03/03/2037

$

$

3.70%,

03/01/2046

4.50%,

03/01/2027

4.55%,

03/01/2028

4.80%,

06/01/2029

4.95%,

06/01/2034

McKesson

Corp

4.65%,

05/30/2030

Mead

Johnson

Nutrition

Co

4.60%,

06/01/2044

Merck

&

Co

Inc

1.70%,

06/10/2027

2.15%,

12/10/2031

2.35%,

06/24/2040

3.60%,

09/15/2042

3.70%,

02/10/2045

3.85%,

09/15/2027

3.85%,

03/15/2029

(d) 190

3.90%,

03/07/2039

4.00%,

03/07/2049

4.15%,

09/15/2030

4.15%,

05/18/2043

4.45%,

12/04/2032

4.50%,

05/17/2033

4.75%,

12/04/2035

4.95%,

09/15/2035

5.00%,

05/17/2053

5.55%,

12/04/2055

5.70%,

12/04/2065

Novartis

Capital

Corp

3.80%,

09/18/2029

4.10%,

11/05/2030

4.20%,

09/18/2034

4.30%,

11/05/2032

4.40%,

05/06/2044

4.60%,

11/05/2035

4.70%,

09/18/2054

5.20%,

11/05/2045

Pfizer

Inc

1.70%,

05/28/2030

2.55%,

05/28/2040

2.63%,

04/01/2030

2.70%,

05/28/2050

4.00%,

03/15/2049

4.40%,

05/15/2044

4.50%,

11/15/2032

5.60%,

11/15/2055

5.70%,

11/15/2065

7.20%,

03/15/2039

Pfizer

Investment

Enterprises

Pte

Ltd

4.45%,

05/19/2028

4.65%,

05/19/2030

4.75%,

05/19/2033

5.11%,

05/19/2043

5.30%,

05/19/2053

5.34%,

05/19/2063

Takeda

Pharmaceutical

Co

Ltd

2.05%,

03/31/2030

3.18%,

07/09/2050

5.30%,

07/05/2034

Takeda

US

Financing

Inc

5.90%,

07/07/2055

Utah

Acquisition

Sub

Inc

5.25%,

06/15/2046

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Pharmaceuticals

(continued)

Viatris

Inc

2.30%,

06/22/2027

$

$

2.70%,

06/22/2030

3.85%,

06/22/2040

4.00%,

06/22/2050

Wyeth

LLC

5.95%,

04/01/2037

6.50%,

02/01/2034

Zoetis

Inc

2.00%,

05/15/2030

3.00%,

05/15/2050

3.95%,

09/12/2047

4.15%,

08/17/2028

$

23,942

Pipelines

-

.88

%

Cheniere

Corpus

Christi

Holdings

LLC

3.70%,

11/15/2029

Cheniere

Energy

Partners

LP

5.55%,

10/30/2035

(g) 85

5.75%,

08/15/2034

Eastern

Gas

Transmission

&

Storage

Inc

4.80%,

11/01/2043

Enbridge

Energy

Partners

LP

7.38%,

10/15/2045

Enbridge

Inc

2.50%,

08/01/2033

3.13%,

11/15/2029

3.40%,

08/01/2051

4.60%,

06/20/2028

5.30%,

04/05/2029

5.55%,

06/20/2035

5.70%,

03/08/2033

5.95%,

04/05/2054

6.70%,

11/15/2053

Energy

Transfer

LP

3.75%,

05/15/2030

4.95%,

01/15/2043

5.00%,

05/15/2044

5.25%,

04/15/2029

5.30%,

04/15/2047

5.35%,

05/15/2045

5.55%,

05/15/2034

5.70%,

04/01/2035

5.75%,

02/15/2033

6.05%,

09/01/2054

6.10%,

12/01/2028

6.13%,

12/15/2045

6.25%,

04/15/2049

6.40%,

12/01/2030

6.50%,

02/01/2042

Enterprise

Products

Operating

LLC

3.30%,

02/15/2053

3.70%,

01/31/2051

4.25%,

02/15/2048

4.30%,

06/20/2028

4.60%,

01/15/2031

4.85%,

01/31/2034

4.85%,

08/15/2042

4.85%,

03/15/2044

4.90%,

05/15/2046

4.95%,

02/15/2035

5.20%,

01/15/2036

5.55%,

02/16/2055

6.45%,

09/01/2040

6.88%,

03/01/2033

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Pipelines

(continued)

Kinder

Morgan

Energy

Partners

LP

4.70%,

11/01/2042

$

$

5.00%,

03/01/2043

6.38%,

03/01/2041

6.50%,

09/01/2039

6.95%,

01/15/2038

7.40%,

03/15/2031

Kinder

Morgan

Inc

2.00%,

02/15/2031

3.25%,

08/01/2050

3.60%,

02/15/2051

5.00%,

02/01/2029

5.05%,

02/15/2046

5.20%,

06/01/2033

5.40%,

02/01/2034

5.55%,

06/01/2045

5.85%,

06/01/2035

5.95%,

08/01/2054

MPLX

LP

4.13%,

03/01/2027

4.25%,

12/01/2027

4.50%,

04/15/2038

4.70%,

04/15/2048

4.80%,

02/15/2031

4.90%,

04/15/2058

5.00%,

01/15/2033

5.00%,

03/01/2033

5.20%,

03/01/2047

5.20%,

12/01/2047

5.50%,

06/01/2034

5.50%,

02/15/2049

5.95%,

04/01/2055

6.20%,

09/15/2055

ONEOK

Inc

3.40%,

09/01/2029

4.25%,

09/24/2027

4.45%,

09/01/2049

4.75%,

10/15/2031

5.40%,

10/15/2035

5.70%,

11/01/2054

5.85%,

11/01/2064

6.05%,

09/01/2033

6.25%,

10/15/2055

6.63%,

09/01/2053

Plains

All

American

Pipeline

LP

5.95%,

06/15/2035

Plains

All

American

Pipeline

LP

/

PAA

Finance

Corp

4.30%,

01/31/2043

5.60%,

01/15/2036

Sabine

Pass

Liquefaction

LLC

5.00%,

03/15/2027

Targa

Resources

Corp

4.90%,

09/15/2030

5.20%,

07/01/2027

5.40%,

07/30/2036

5.65%,

02/15/2036

6.13%,

03/15/2033

6.13%,

05/15/2055

6.15%,

03/01/2029

6.50%,

03/30/2034

Texas

Eastern

Transmission

LP

7.00%,

07/15/2032

TransCanada

PipeLines

Ltd

4.25%,

05/15/2028

5.60%,

03/31/2034

6.10%,

06/01/2040

7.25%,

08/15/2038

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Pipelines

(continued)

Western

Midstream

Operating

LP

4.80%,

03/01/2031

$

$

5.45%,

11/15/2034

6.15%,

04/01/2033

Williams

Cos

Inc/The

2.60%,

03/15/2031

3.50%,

10/15/2051

3.75%,

06/15/2027

4.90%,

03/15/2029

5.10%,

09/15/2045

5.30%,

08/15/2028

5.30%,

08/15/2052

5.65%,

03/15/2033

6.00%,

03/15/2055

6.30%,

04/15/2040

$

15,876

Private

Equity

-

.05

%

Brookfield

Finance

Inc

2.72%,

04/15/2031

3.50%,

03/30/2051

3.90%,

01/25/2028

5.33%,

01/15/2036

5.68%,

01/15/2035

Brookfield

Finance

LLC

/

Brookfield

Finance

Inc

3.45%,

04/15/2050

$

853

Regional

Authority

-

.26

%

Province

of

Alberta

Canada

1.30%,

07/22/2030

3.30%,

03/15/2028

4.30%,

11/02/2035

4.50%,

06/26/2029

Province

of

British

Columbia

Canada

1.30%,

01/29/2031

3.90%,

08/27/2030

4.20%,

07/06/2033

4.70%,

01/24/2028

4.75%,

06/12/2034

4.80%,

11/15/2028

4.80%,

06/11/2035

Province

of

Manitoba

Canada

1.50%,

10/25/2028

4.30%,

07/27/2033

Province

of

Ontario

Canada

1.13%,

10/07/2030

2.13%,

01/21/2032

3.10%,

05/19/2027

3.70%,

09/17/2029

3.90%,

09/04/2030

4.20%,

01/18/2029

4.45%,

11/20/2035

4.70%,

01/15/2030

4.85%,

06/11/2035

Province

of

Quebec

Canada

1.35%,

05/28/2030

3.63%,

04/13/2028

4.25%,

09/05/2034

4.50%,

04/03/2029

4.50%,

09/08/2033

4.63%,

08/28/2035

7.50%,

09/15/2029

$

4,693

REITs

-

.88

%

Alexandria

Real

Estate

Equities

Inc

1.88%,

02/01/2033

2.75%,

12/15/2029

2.95%,

03/15/2034

3.00%,

05/18/2051

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

REITs

(continued)

Alexandria

Real

Estate

Equities

Inc

(continued)

3.38%,

08/15/2031

$

$

4.00%,

02/01/2050

4.90%,

12/15/2030

5.15%,

04/15/2053

American

Homes

Rent

LP

4.95%,

06/15/2030

American

Tower

Corp

1.88%,

10/15/2030

2.90%,

01/15/2030

2.95%,

01/15/2051

3.65%,

03/15/2027

3.70%,

10/15/2049

4.70%,

12/15/2032

5.25%,

07/15/2028

5.35%,

03/15/2035

5.65%,

03/15/2033

5.90%,

11/15/2033

AvalonBay

Communities

Inc

1.90%,

12/01/2028

2.30%,

03/01/2030

4.35%,

12/01/2030

5.00%,

02/15/2033

5.00%,

08/01/2035

5.35%,

06/01/2034

Boston

Properties

LP

2.55%,

04/01/2032

2.90%,

03/15/2030

COPT

Defense

Properties

LP

2.75%,

04/15/2031

Crown

Castle

Inc

2.50%,

07/15/2031

2.90%,

04/01/2041

3.10%,

11/15/2029

3.25%,

01/15/2051

3.30%,

07/01/2030

4.00%,

11/15/2049

4.90%,

09/01/2029

5.00%,

01/11/2028

5.10%,

05/01/2033

CubeSmart

LP

2.00%,

02/15/2031

2.25%,

12/15/2028

5.13%,

11/01/2035

Digital

Realty

Trust

LP

4.45%,

07/15/2028

5.55%,

01/15/2028

Equinix

Inc

1.80%,

07/15/2027

2.50%,

05/15/2031

3.20%,

11/18/2029

3.40%,

02/15/2052

ERP

Operating

LP

2.50%,

02/15/2030

4.65%,

09/15/2034

Essex

Portfolio

LP

1.70%,

03/01/2028

3.00%,

01/15/2030

4.00%,

03/01/2029

5.50%,

04/01/2034

Extra

Space

Storage

LP

2.20%,

10/15/2030

2.40%,

10/15/2031

4.95%,

01/15/2033

5.40%,

02/01/2034

5.40%,

06/15/2035

5.50%,

07/01/2030

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

REITs

(continued)

Federal

Realty

OP

LP

4.50%,

12/01/2044

$

$

GLP

Capital

LP

/

GLP

Financing

II

Inc

4.00%,

01/15/2030

5.25%,

02/15/2033

Healthcare

Realty

Holdings

LP

2.00%,

03/15/2031

Healthpeak

OP

LLC

2.13%,

12/01/2028

3.00%,

01/15/2030

5.25%,

12/15/2032

6.75%,

02/01/2041

Kilroy

Realty

LP

2.50%,

11/15/2032

Kimco

Realty

OP

LLC

2.25%,

12/01/2031

2.70%,

10/01/2030

3.70%,

10/01/2049

4.60%,

02/01/2033

5.30%,

02/01/2036

6.40%,

03/01/2034

Mid-America

Apartments

LP

1.70%,

02/15/2031

5.30%,

02/15/2032

NNN

REIT

Inc

4.60%,

02/15/2031

4.80%,

10/15/2048

Prologis

LP

1.75%,

07/01/2030

2.13%,

04/15/2027

2.88%,

11/15/2029

3.00%,

04/15/2050

4.00%,

09/15/2028

4.88%,

06/15/2028

5.25%,

05/15/2035

5.25%,

03/15/2054

Public

Storage

Operating

Co

1.85%,

05/01/2028

5.00%,

07/01/2035

5.10%,

08/01/2033

5.13%,

01/15/2029

(d) 150

Realty

Income

Corp

2.10%,

03/15/2028

2.20%,

06/15/2028

3.10%,

12/15/2029

3.25%,

01/15/2031

4.50%,

02/01/2033

4.75%,

02/15/2029

4.85%,

03/15/2030

4.90%,

07/15/2033

(d) 150

5.38%,

09/01/2054

Simon

Property

Group

LP

1.75%,

02/01/2028

2.45%,

09/13/2029

2.65%,

02/01/2032

3.25%,

09/13/2049

4.25%,

11/30/2046

4.38%,

10/01/2030

4.75%,

09/26/2034

6.75%,

02/01/2040

UDR

Inc

2.10%,

08/01/2032

3.20%,

01/15/2030

Ventas

Realty

LP

3.00%,

01/15/2030

5.00%,

02/15/2036

5.10%,

07/15/2032

5.63%,

07/01/2034

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

REITs

(continued)

VICI

Properties

LP

4.75%,

04/01/2028

$

$

5.13%,

11/15/2031

Welltower

OP

LLC

2.75%,

01/15/2032

4.13%,

03/15/2029

4.50%,

07/01/2030

5.13%,

07/01/2035

Weyerhaeuser

Co

7.38%,

03/15/2032

WP

Carey

Inc

4.65%,

07/15/2030

$

15,845

Retail

-

.63

%

AutoZone

Inc

1.65%,

01/15/2031

3.75%,

06/01/2027

5.10%,

07/15/2029

Costco

Wholesale

Corp

1.38%,

06/20/2027

Dollar

Tree

Inc

4.20%,

05/15/2028

Home

Depot

Inc/The

1.88%,

09/15/2031

2.38%,

03/15/2051

2.75%,

09/15/2051

2.88%,

04/15/2027

2.95%,

06/15/2029

3.50%,

09/15/2056

3.90%,

06/15/2047

3.95%,

09/15/2030

4.20%,

04/01/2043

4.25%,

04/01/2046

4.40%,

03/15/2045

4.85%,

06/25/2031

4.88%,

06/25/2027

4.95%,

06/25/2034

4.95%,

09/15/2052

5.30%,

06/25/2054

Lowe's

Cos

Inc

1.30%,

04/15/2028

1.70%,

10/15/2030

3.00%,

10/15/2050

3.10%,

05/03/2027

3.65%,

04/05/2029

3.70%,

04/15/2046

3.75%,

04/01/2032

4.00%,

10/15/2028

4.05%,

05/03/2047

4.25%,

04/01/2052

4.38%,

09/15/2045

4.85%,

10/15/2035

5.00%,

04/15/2033

5.00%,

04/15/2040

5.63%,

04/15/2053

5.75%,

07/01/2053

McDonald's

Corp

2.13%,

03/01/2030

2.63%,

09/01/2029

3.50%,

07/01/2027

3.63%,

09/01/2049

3.70%,

02/15/2042

4.60%,

05/15/2030

4.70%,

12/09/2035

4.88%,

07/15/2040

4.88%,

12/09/2045

4.95%,

08/14/2033

5.00%,

02/13/2036

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Retail

(continued)

McDonald's

Corp

(continued)

5.15%,

09/09/2052

$

$

6.30%,

10/15/2037

O'Reilly

Automotive

Inc

1.75%,

03/15/2031

4.35%,

06/01/2028

Starbucks

Corp

2.00%,

03/12/2027

3.00%,

02/14/2032

(d) 135

4.45%,

08/15/2049

4.80%,

05/15/2030

4.80%,

02/15/2033

Target

Corp

1.95%,

01/15/2027

2.35%,

02/15/2030

2.95%,

01/15/2052

4.50%,

09/15/2032

(d) 120

4.50%,

09/15/2034

4.80%,

01/15/2053

Walmart

Inc

1.50%,

09/22/2028

2.50%,

09/22/2041

2.95%,

09/24/2049

3.90%,

04/15/2028

3.95%,

06/28/2038

4.10%,

04/28/2027

4.10%,

04/15/2033

4.50%,

09/09/2052

4.90%,

04/28/2035

$

11,387

Semiconductors

-

.76

%

Analog

Devices

Inc

2.10%,

10/01/2031

2.80%,

10/01/2041

4.25%,

06/15/2028

4.50%,

06/15/2030

5.30%,

04/01/2054

Applied

Materials

Inc

1.75%,

06/01/2030

3.30%,

04/01/2027

4.35%,

04/01/2047

4.60%,

01/15/2036

4.80%,

06/15/2029

5.10%,

10/01/2035

(d) 250

Broadcom

Inc

1.95%,

02/15/2028

2.60%,

02/15/2033

3.14%,

11/15/2035

(g) 640

551

3.19%,

11/15/2036

(g) 14

3.42%,

04/15/2033

3.47%,

04/15/2034

3.50%,

02/15/2041

3.75%,

02/15/2051

4.15%,

02/15/2028

4.15%,

11/15/2030

4.20%,

10/15/2030

4.30%,

11/15/2032

4.35%,

02/15/2030

4.55%,

02/15/2032

4.60%,

07/15/2030

4.75%,

04/15/2029

4.80%,

02/15/2036

5.15%,

11/15/2031

5.20%,

04/15/2032

5.20%,

07/15/2035

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Semiconductors

(continued)

Intel

Corp

2.00%,

08/12/2031

$

$

2.45%,

11/15/2029

3.05%,

08/12/2051

3.15%,

05/11/2027

3.20%,

08/12/2061

3.25%,

11/15/2049

3.73%,

12/08/2047

3.75%,

03/25/2027

3.75%,

08/05/2027

4.00%,

08/05/2029

4.00%,

12/15/2032

4.15%,

08/05/2032

4.25%,

12/15/2042

4.60%,

03/25/2040

4.80%,

10/01/2041

5.20%,

02/10/2033

(d) 130

5.60%,

02/21/2054

5.63%,

02/10/2043

5.70%,

02/10/2053

KLA

Corp

4.70%,

02/01/2034

4.95%,

07/15/2052

Lam

Research

Corp

1.90%,

06/15/2030

2.88%,

06/15/2050

Marvell

Technology

Inc

2.45%,

04/15/2028

4.75%,

07/15/2030

4.88%,

06/22/2028

5.45%,

07/15/2035

Micron

Technology

Inc

2.70%,

04/15/2032

4.66%,

02/15/2030

5.30%,

01/15/2031

5.80%,

01/15/2035

6.05%,

11/01/2035

NVIDIA

Corp

1.55%,

06/15/2028

NXP

BV

/

NXP

Funding

LLC

/

NXP

USA

Inc

2.50%,

05/11/2031

3.13%,

02/15/2042

3.15%,

05/01/2027

3.25%,

05/11/2041

4.30%,

08/19/2028

4.40%,

06/01/2027

QUALCOMM

Inc

1.30%,

05/20/2028

1.65%,

05/20/2032

3.25%,

05/20/2027

4.50%,

05/20/2030

4.65%,

05/20/2035

4.80%,

05/20/2045

6.00%,

05/20/2053

Texas

Instruments

Inc

1.75%,

05/04/2030

4.15%,

05/15/2048

4.50%,

05/23/2030

4.60%,

02/15/2028

4.90%,

03/14/2033

5.00%,

03/14/2053

5.15%,

02/08/2054

$

13,698

Software

-

.59

%

Fidelity

National

Information

Services

Inc

1.65%,

03/01/2028

3.10%,

03/01/2041

5.10%,

07/15/2032

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Software

(continued)

Fiserv

Inc

3.50%,

07/01/2029

$

$

4.75%,

03/15/2030

5.15%,

08/12/2034

5.25%,

08/11/2035

5.35%,

03/15/2031

5.45%,

03/02/2028

5.63%,

08/21/2033

Intuit

Inc

5.13%,

09/15/2028

5.50%,

09/15/2053

Microsoft

Corp

2.53%,

06/01/2050

2.68%,

06/01/2060

3.30%,

02/06/2027

3.45%,

08/08/2036

Oracle

Corp

2.30%,

03/25/2028

2.80%,

04/01/2027

2.88%,

03/25/2031

2.95%,

04/01/2030

3.60%,

04/01/2040

3.60%,

04/01/2050

3.65%,

03/25/2041

3.80%,

11/15/2037

3.90%,

05/15/2035

600

517

3.95%,

03/25/2051

4.00%,

07/15/2046

4.10%,

03/25/2061

4.20%,

09/27/2029

4.30%,

07/08/2034

4.38%,

05/15/2055

4.45%,

09/26/2030

4.50%,

05/06/2028

4.65%,

05/06/2030

4.70%,

09/27/2034

4.80%,

09/26/2032

5.20%,

09/26/2035

5.25%,

02/03/2032

5.38%,

09/27/2054

5.50%,

09/27/2064

5.55%,

02/06/2053

5.88%,

09/26/2045

5.95%,

09/26/2055

6.00%,

08/03/2055

6.13%,

08/03/2065

6.15%,

11/09/2029

6.25%,

11/09/2032

6.90%,

11/09/2052

Roper

Technologies

Inc

1.40%,

09/15/2027

2.95%,

09/15/2029

4.25%,

09/15/2028

4.75%,

02/15/2032

4.90%,

10/15/2034

5.10%,

09/15/2035

Salesforce

Inc

2.70%,

07/15/2041

2.90%,

07/15/2051

Synopsys

Inc

4.65%,

04/01/2028

4.85%,

04/01/2030

5.15%,

04/01/2035

5.70%,

04/01/2055

Take-Two

Interactive

Software

Inc

4.95%,

03/28/2028

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Software

(continued)

VMware

LLC

1.80%,

08/15/2028

$

$

2.20%,

08/15/2031

$

10,638

Sovereign

-

.31

%

Canada

Government

International

Bond

3.75%,

04/26/2028

4.00%,

03/18/2030

4.63%,

04/30/2029

Chile

Government

International

Bond

2.45%,

01/31/2031

2.55%,

01/27/2032

2.75%,

01/31/2027

3.10%,

05/07/2041

3.24%,

02/06/2028

3.86%,

06/21/2047

4.00%,

01/31/2052

4.95%,

01/05/2036

Export

Development

Canada

3.75%,

09/07/2027

3.88%,

02/14/2028

4.00%,

06/20/2030

4.13%,

02/13/2029

4.75%,

06/05/2034

Export-Import

Bank

of

Korea

3.75%,

09/22/2030

4.00%,

09/11/2029

4.25%,

09/15/2027

4.50%,

09/15/2032

5.13%,

09/18/2028

Indonesia

Government

International

Bond

2.15%,

07/28/2031

2.85%,

02/14/2030

3.05%,

03/12/2051

3.50%,

01/11/2028

4.20%,

10/15/2050

4.55%,

01/11/2028

4.75%,

02/11/2029

4.75%,

09/10/2034

4.90%,

04/16/2036

5.10%,

02/10/2054

(d) 200

5.15%,

09/10/2054

(d) 200

Israel

Government

AID

Bond

5.50%,

09/18/2033

Israel

Government

International

Bond

3.88%,

07/03/2050

4.50%,

01/30/2043

5.38%,

02/19/2030

5.50%,

03/12/2034

5.75%,

03/12/2054

Japan

Bank

for

International

Cooperation

1.25%,

01/21/2031

1.88%,

04/15/2031

2.13%,

02/16/2029

4.63%,

07/22/2027

4.63%,

07/19/2028

4.88%,

10/18/2028

Japan

International

Cooperation

Agency

4.75%,

05/21/2029

Korea

International

Bond

1.00%,

09/16/2030

3.88%,

09/20/2048

Mexico

Government

International

Bond

2.66%,

05/24/2031

3.25%,

04/16/2030

3.50%,

02/12/2034

3.75%,

01/11/2028

3.77%,

05/24/2061

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Sovereign

(continued)

Mexico

Government

International

Bond

(continued)

4.50%,

04/22/2029

$

$

4.50%,

01/31/2050

4.60%,

02/10/2048

4.75%,

03/08/2044

5.38%,

03/22/2033

5.55%,

01/21/2045

5.63%,

09/22/2035

5.85%,

07/02/2032

6.00%,

05/07/2036

6.05%,

01/11/2040

6.34%,

05/04/2053

6.35%,

02/09/2035

6.40%,

05/07/2054

6.88%,

05/13/2037

7.38%,

05/13/2055

Panama

Government

International

Bond

2.25%,

09/29/2032

3.30%,

01/19/2033

3.87%,

07/23/2060

4.30%,

04/29/2053

4.50%,

04/16/2050

6.70%,

01/26/2036

6.85%,

03/28/2054

Peruvian

Government

International

Bond

1.86%,

12/01/2032

2.78%,

01/23/2031

2.78%,

12/01/2060

3.30%,

03/11/2041

3.55%,

03/10/2051

5.50%,

03/30/2036

5.63%,

11/18/2050

5.88%,

08/08/2054

6.55%,

03/14/2037

8.75%,

11/21/2033

Philippine

Government

International

Bond

2.46%,

05/05/2030

2.65%,

12/10/2045

3.70%,

02/02/2042

4.75%,

03/05/2035

5.00%,

07/17/2033

5.50%,

02/04/2035

5.50%,

01/17/2048

5.60%,

05/14/2049

9.50%,

02/02/2030

Republic

of

Italy

Government

International

Bond

2.88%,

10/17/2029

3.88%,

05/06/2051

5.38%,

06/15/2033

Republic

of

Poland

Government

International

Bond

4.88%,

02/12/2030

4.88%,

10/04/2033

5.13%,

09/18/2034

5.50%,

03/18/2054

State

of

Israel

2.50%,

01/15/2030

3.38%,

01/15/2050

Svensk

Exportkredit

AB

3.75%,

09/13/2027

3.75%,

07/29/2030

4.13%,

06/14/2028

Tennessee

Valley

Authority

3.50%,

12/15/2042

3.88%,

03/15/2028

4.25%,

09/15/2065

4.63%,

09/15/2060

4.88%,

05/15/2035

5.25%,

09/15/2039

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Sovereign

(continued)

Tennessee

Valley

Authority

(continued)

5.38%,

04/01/2056

$

$

5.88%,

04/01/2036

Uruguay

Government

International

Bond

4.13%,

11/20/2045

4.38%,

10/27/2027

4.98%,

04/20/2055

5.10%,

06/18/2050

5.44%,

02/14/2037

5.75%,

10/28/2034

$

23,660

Supranational

Bank

-

.29

%

African

Development

Bank

3.50%,

09/18/2029

3.88%,

06/12/2028

4.00%,

03/18/2030

4.13%,

02/25/2027

4.38%,

03/14/2028

4.63%,

01/04/2027

Asian

Development

Bank

1.25%,

06/09/2028

1.50%,

01/20/2027

1.50%,

03/04/2031

1.75%,

09/19/2029

1.88%,

03/15/2029

2.75%,

01/19/2028

3.13%,

08/20/2027

3.13%,

04/27/2032

3.63%,

08/28/2029

3.75%,

04/25/2028

3.75%,

08/28/2030

3.88%,

09/28/2032

3.88%,

06/14/2033

4.00%,

01/12/2033

4.13%,

01/12/2027

4.13%,

05/30/2030

4.38%,

01/14/2028

4.38%,

03/06/2029

4.38%,

03/22/2035

4.50%,

08/25/2028

5.82%,

06/16/2028

6.38%,

10/01/2028

Asian

Infrastructure

Investment

Bank/The

3.63%,

09/15/2028

3.75%,

09/14/2027

4.13%,

01/18/2029

4.50%,

01/16/2030

4.50%,

05/21/2035

Council

Of

Europe

Development

Bank

3.63%,

01/26/2028

4.50%,

01/15/2030

4.63%,

06/11/2027

European

Bank

for

Reconstruction

&

Development

4.13%,

01/25/2029

4.38%,

03/09/2028

European

Investment

Bank

0.63%,

10/21/2027

1.25%,

02/14/2031

1.38%,

03/15/2027

1.63%,

05/13/2031

1.75%,

03/15/2029

2.38%,

05/24/2027

3.25%,

11/15/2027

3.63%,

07/15/2030

3.75%,

11/15/2029

3.75%,

02/14/2033

3.88%,

03/15/2028

3.88%,

06/15/2028

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Supranational

Bank

(continued)

European

Investment

Bank

(continued)

3.88%,

10/15/2030

$

$

4.00%,

02/15/2029

4.13%,

02/13/2034

4.25%,

08/16/2032

(d) 335

4.38%,

03/19/2027

4.38%,

10/10/2031

4.50%,

10/16/2028

4.50%,

03/14/2030

4.63%,

02/12/2035

4.75%,

06/15/2029

Inter-American

Development

Bank

0.63%,

09/16/2027

1.13%,

07/20/2028

1.13%,

01/13/2031

1.50%,

01/13/2027

2.38%,

07/07/2027

3.13%,

09/18/2028

3.50%,

09/14/2029

3.50%,

04/12/2033

3.75%,

06/14/2030

4.00%,

01/12/2028

4.13%,

02/15/2029

4.38%,

02/01/2027

4.38%,

07/17/2034

4.38%,

07/16/2035

4.38%,

01/24/2044

4.50%,

02/15/2030

4.50%,

09/13/2033

International

Bank

for

Reconstruction

&

Development

0.75%,

11/24/2027

0.75%,

08/26/2030

1.25%,

02/10/2031

1.38%,

04/20/2028

1.63%,

11/03/2031

1.75%,

10/23/2029

550

513

2.50%,

03/29/2032

3.13%,

06/15/2027

3.50%,

07/12/2028

3.50%,

10/28/2030

3.63%,

05/05/2028

3.63%,

09/21/2029

3.88%,

10/16/2029

3.88%,

02/14/2030

3.88%,

08/28/2034

4.00%,

07/25/2030

4.00%,

01/10/2031

4.00%,

05/06/2032

4.13%,

03/20/2030

4.38%,

08/27/2035

4.50%,

04/10/2031

4.63%,

08/01/2028

4.63%,

01/15/2032

4.75%,

11/14/2033

International

Finance

Corp

3.88%,

07/02/2030

4.25%,

07/02/2029

4.38%,

01/15/2027

4.50%,

01/21/2028

4.50%,

07/13/2028

Nordic

Investment

Bank

3.38%,

09/08/2027

4.25%,

02/28/2029

$

23,248

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Telecommunications

-

.04

%

America

Movil

SAB

de

CV

4.38%,

04/22/2049

$

$

6.13%,

03/30/2040

6.38%,

03/01/2035

AT&T

Inc

1.65%,

02/01/2028

2.25%,

02/01/2032

2.30%,

06/01/2027

2.75%,

06/01/2031

3.10%,

02/01/2043

3.50%,

06/01/2041

3.50%,

09/15/2053

629

3.55%,

09/15/2055

533

3.65%,

06/01/2051

3.65%,

09/15/2059

757

3.80%,

02/15/2027

4.10%,

02/15/2028

4.25%,

03/01/2027

4.30%,

12/15/2042

4.35%,

03/01/2029

4.35%,

06/15/2045

4.50%,

03/09/2048

4.90%,

11/01/2035

5.38%,

08/15/2035

5.40%,

02/15/2034

5.55%,

11/01/2045

6.05%,

08/15/2056

Bell

Telephone

Co

of

Canada

or

Bell

Canada

5.20%,

02/15/2034

British

Telecommunications

PLC

9.62%,

12/15/2030

Cisco

Systems

Inc

4.80%,

02/26/2027

4.95%,

02/24/2032

5.05%,

02/26/2034

5.30%,

02/26/2054

5.50%,

01/15/2040

Corning

Inc

4.38%,

11/15/2057

4.75%,

03/15/2042

Deutsche

Telekom

International

Finance

BV

8.75%,

06/15/2030

Juniper

Networks

Inc

2.00%,

12/10/2030

Motorola

Solutions

Inc

4.85%,

08/15/2030

5.20%,

08/15/2032

Orange

SA

5.38%,

01/13/2042

Rogers

Communications

Inc

3.20%,

03/15/2027

3.80%,

03/15/2032

5.00%,

02/15/2029

Sprint

Capital

Corp

6.88%,

11/15/2028

Telefonica

Emisiones

SA

5.21%,

03/08/2047

7.05%,

06/20/2036

545

608

T-Mobile

USA

Inc

2.05%,

02/15/2028

2.25%,

11/15/2031

2.40%,

03/15/2029

2.55%,

02/15/2031

3.00%,

02/15/2041

3.30%,

02/15/2051

3.40%,

10/15/2052

3.75%,

04/15/2027

3.88%,

04/15/2030

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Telecommunications

(continued)

T-Mobile

USA

Inc

(continued)

4.20%,

10/01/2029

$

$

4.38%,

04/15/2040

4.50%,

04/15/2050

4.80%,

07/15/2028

4.95%,

03/15/2028

4.95%,

11/15/2035

5.05%,

07/15/2033

5.13%,

05/15/2032

5.15%,

04/15/2034

5.20%,

01/15/2033

5.25%,

06/15/2055

5.50%,

01/15/2055

5.65%,

01/15/2053

5.70%,

01/15/2056

5.75%,

01/15/2034

5.75%,

01/15/2054

6.00%,

06/15/2054

Verizon

Communications

Inc

1.50%,

09/18/2030

1.68%,

10/30/2030

1.75%,

01/20/2031

2.10%,

03/22/2028

2.36%,

03/15/2032

2.55%,

03/21/2031

2.65%,

11/20/2040

2.88%,

11/20/2050

2.99%,

10/30/2056

3.00%,

11/20/2060

3.40%,

03/22/2041

3.55%,

03/22/2051

3.70%,

03/22/2061

3.85%,

11/01/2042

4.13%,

03/16/2027

4.33%,

09/21/2028

4.40%,

11/01/2034

4.50%,

08/10/2033

4.75%,

01/15/2033

4.81%,

03/15/2039

5.00%,

01/15/2036

5.25%,

04/02/2035

5.75%,

11/30/2045

5.88%,

11/30/2055

6.00%,

11/30/2065

Vodafone

Group

PLC

5.63%,

02/10/2053

5.75%,

06/28/2054

5.88%,

06/28/2064

6.15%,

02/27/2037

$

18,765

Transportation

-

.44

%

Burlington

Northern

Santa

Fe

LLC

3.05%,

02/15/2051

3.30%,

09/15/2051

3.55%,

02/15/2050

4.45%,

03/15/2043

4.45%,

01/15/2053

4.55%,

09/01/2044

5.15%,

09/01/2043

5.20%,

04/15/2054

5.50%,

03/15/2055

5.80%,

03/15/2056

Canadian

National

Railway

Co

2.45%,

05/01/2050

3.65%,

02/03/2048

3.85%,

08/05/2032

4.38%,

09/18/2034

4.75%,

11/12/2035

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Transportation

(continued)

Canadian

Pacific

Railway

Co

3.10%,

12/02/2051

$

$

4.80%,

03/30/2030

4.80%,

09/15/2035

CSX

Corp

2.40%,

02/15/2030

3.25%,

06/01/2027

3.35%,

09/15/2049

3.80%,

03/01/2028

3.80%,

11/01/2046

4.30%,

03/01/2048

4.50%,

11/15/2052

4.75%,

05/30/2042

4.90%,

03/15/2055

5.05%,

06/15/2035

5.20%,

11/15/2033

FedEx

Corp

3.10%,

08/05/2029

3.88%,

08/01/2042

4.40%,

01/15/2047

4.55%,

04/01/2046

4.75%,

11/15/2045

Norfolk

Southern

Corp

2.30%,

05/15/2031

2.55%,

11/01/2029

2.90%,

08/25/2051

3.94%,

11/01/2047

4.45%,

03/01/2033

4.55%,

06/01/2053

4.84%,

10/01/2041

5.35%,

08/01/2054

Ryder

System

Inc

4.30%,

06/15/2027

4.95%,

09/01/2029

Union

Pacific

Corp

2.15%,

02/05/2027

2.38%,

05/20/2031

2.80%,

02/14/2032

2.89%,

04/06/2036

3.20%,

05/20/2041

3.38%,

02/14/2042

3.80%,

10/01/2051

3.80%,

04/06/2071

3.84%,

03/20/2060

4.50%,

01/20/2033

4.95%,

09/09/2052

5.60%,

12/01/2054

United

Parcel

Service

Inc

2.50%,

09/01/2029

3.40%,

09/01/2049

4.65%,

10/15/2030

(d) 105

4.88%,

03/03/2033

4.88%,

11/15/2040

5.05%,

03/03/2053

5.15%,

05/22/2034

5.20%,

04/01/2040

5.50%,

05/22/2054

5.95%,

05/14/2055

6.20%,

01/15/2038

$

7,999

Trucking

&

Leasing

-

.02

%

GATX

Corp

1.90%,

06/01/2031

5.50%,

06/15/2035

$

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Water

-

.07

%

American

Water

Capital

Corp

2.30%,

06/01/2031

$

$

3.25%,

06/01/2051

3.75%,

09/01/2047

4.45%,

06/01/2032

5.70%,

09/01/2055

6.59%,

10/15/2037

Essential

Utilities

Inc

2.40%,

05/01/2031

5.25%,

08/15/2035

5.30%,

05/01/2052

5.38%,

01/15/2034

$

1,219

TOTAL

BONDS

$

505,354

MUNICIPAL

BONDS

-

.57

%

Principal

Amount

(000's)

Value

(000's)

California

-

.17

%

Bay

Area

Toll

Authority

6.26%,

04/01/2049

$

$

6.92%,

04/01/2040

California

State

University

2.98%,

11/01/2051

East

Bay

Municipal

Utility

District

Water

System

Revenue

5.87%,

06/01/2040

Los

Angeles

Department

of

Water

&

Power

6.57%,

07/01/2045

Regents

of

the

University

of

California

Medical

Center

Pooled

Revenue

6.55%,

05/15/2048

San

Diego

County

Water

Authority

6.14%,

05/01/2049

State

of

California

3.50%,

04/01/2028

7.30%,

10/01/2039

7.35%,

11/01/2039

500

584

7.60%,

11/01/2040

7.63%,

03/01/2040

$

2,994

District

of

Columbia

-

.02

%

District

of

Columbia

Water

&

Sewer

Authority

4.81%,

10/01/2114

Georgia

-

.02

%

Municipal

Electric

Authority

of

Georgia

6.64%,

04/01/2057

7.06%,

04/01/2057

$

Illinois

-

.07

%

Chicago

Transit

Authority

Sales

&

Transfer

Tax

Receipts

Revenue

6.90%,

12/01/2040

Chicago

Transit

Authority

Sales

Tax

Receipts

Fund

6.20%,

12/01/2040

County

of

Cook

IL

6.23%,

11/15/2034

State

of

Illinois

5.10%,

06/01/2033

873

894

7.35%,

07/01/2035

$

1,327

Nevada

-

.00

%

County

of

Clark

Department

of

Aviation

6.82%,

07/01/2045

New

Jersey

-

.07

%

New

Jersey

Economic

Development

Authority

(credit

support

from

National

Public

Finance

Guarantee

Corp)

7.43%,

02/15/2029

(i) 700

731

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

MUNICIPAL

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

New

Jersey

(continued)

New

Jersey

Transportation

Trust

Fund

Authority

6.56%,

12/15/2040

$

$

New

Jersey

Turnpike

Authority

7.10%,

01/01/2041

Rutgers

The

State

University

of

New

Jersey

5.67%,

05/01/2040

$

1,274

New

York

-

.07

%

City

of

New

York

NY

5.52%,

10/01/2037

Metropolitan

Transportation

Authority

6.81%,

11/15/2040

New

York

City

Municipal

Water

Finance

Authority

5.72%,

06/15/2042

5.95%,

06/15/2042

New

York

State

Dormitory

Authority

5.60%,

03/15/2040

Port

Authority

of

New

York

&

New

Jersey

4.46%,

10/01/2062

6.04%,

12/01/2029

$

1,338

Ohio

-

.01

%

American

Municipal

Power

Inc

6.27%,

02/15/2050

Ohio

State

University/The

4.91%,

06/01/2040

$

Pennsylvania

-

.03

%

State

Public

School

Building

Authority

5.00%,

09/15/2027

Texas

-

.10

%

City

of

San

Antonio

TX

Electric

&

Gas

Systems

Revenue

5.81%,

02/01/2041

Dallas

Area

Rapid

Transit

5.02%,

12/01/2048

Dallas

Convention

Center

Hotel

Development

Corp

7.09%,

01/01/2042

Dallas

County

Hospital

District

5.62%,

08/15/2044

Dallas

Independent

School

District

(credit

support

from

Permanent

School

Fund

Guarantee

Program)

6.45%,

02/15/2035

(i) 50

Grand

Parkway

Transportation

Corp

5.18%,

10/01/2042

State

of

Texas

4.68%,

04/01/2040

5.52%,

04/01/2039

Texas

Department

of

Transportation

State

Highway

Fund

5.18%,

04/01/2030

625

640

$

1,824

Wisconsin

-

.01

%

State

of

Wisconsin

(credit

support

from

Assured

Guaranty)

5.70%,

05/01/2026

(i) 90

TOTAL

MUNICIPAL

BONDS

$

10,306

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

-

.32

%

Principal

Amount

(000's)

Value

(000's)

Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

-

.09

%

2.00%,

08/01/2029

$

$

2.00%,

03/01/2032

2.50%,

10/01/2027

2.50%,

03/01/2028

2.50%,

06/01/2028

2.50%,

06/01/2028

2.50%,

07/01/2028

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

(continued)

2.50%,

10/01/2028

$

$

2.50%,

10/01/2028

2.50%,

10/01/2029

2.50%,

12/01/2029

2.50%,

09/01/2030

2.50%,

01/01/2031

2.50%,

01/01/2031

2.50%,

02/01/2031

2.50%,

03/01/2031

2.50%,

12/01/2031

2.50%,

12/01/2031

2.50%,

02/01/2032

2.50%,

03/01/2032

2.50%,

11/01/2032

2.50%,

02/01/2033

2.50%,

03/01/2033

2.50%,

03/01/2033

2.50%,

04/01/2033

2.50%,

05/01/2033

2.50%,

06/01/2033

2.50%,

11/01/2036

2.50%,

02/01/2043

2.50%,

03/01/2043

3.00%,

01/01/2027

3.00%,

03/01/2027

3.00%,

05/01/2027

3.00%,

10/01/2028

3.00%,

07/01/2029

3.00%,

08/01/2029

3.00%,

10/01/2029

3.00%,

11/01/2029

3.00%,

07/01/2030

3.00%,

09/01/2030

3.00%,

11/01/2030

3.00%,

11/01/2030

3.00%,

01/01/2031

3.00%,

04/01/2031

3.00%,

02/01/2032

3.00%,

05/01/2032

3.00%,

12/01/2032

3.00%,

12/01/2032

3.00%,

01/01/2033

3.00%,

02/01/2033

3.00%,

03/01/2033

3.00%,

04/01/2033

3.00%,

04/01/2033

3.00%,

06/01/2033

3.00%,

09/01/2033

3.00%,

09/01/2033

3.00%,

12/01/2034

3.00%,

01/01/2035

3.00%,

02/01/2035

3.00%,

05/01/2035

3.00%,

02/01/2036

3.00%,

09/01/2036

3.00%,

02/01/2037

3.00%,

05/01/2037

3.00%,

06/01/2037

3.00%,

07/01/2037

3.00%,

09/01/2037

3.00%,

01/01/2043

3.00%,

01/01/2043

3.00%,

02/01/2043

3.00%,

03/01/2043

3.00%,

05/01/2043

3.00%,

07/01/2043

3.00%,

07/01/2043

3.00%,

08/01/2043

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

(continued)

3.00%,

08/01/2043

$

$

3.00%,

09/01/2043

3.00%,

10/01/2043

3.00%,

03/01/2045

3.00%,

04/01/2045

3.00%,

06/01/2045

3.00%,

07/01/2045

3.00%,

08/01/2045

3.00%,

12/01/2045

3.00%,

03/01/2046

3.00%,

03/01/2046

3.00%,

04/01/2046

3.00%,

05/01/2046

3.00%,

09/01/2046

3.00%,

10/01/2046

3.00%,

11/01/2046

3.00%,

11/01/2046

3.00%,

11/01/2046

3.00%,

12/01/2046

3.00%,

12/01/2046

3.00%,

01/01/2047

3.00%,

03/01/2047

3.00%,

03/01/2048

3.50%,

12/01/2026

3.50%,

01/01/2029

3.50%,

01/01/2032

3.50%,

03/01/2032

3.50%,

04/01/2032

3.50%,

08/01/2032

3.50%,

09/01/2033

3.50%,

01/01/2034

3.50%,

01/01/2035

3.50%,

02/01/2035

3.50%,

07/01/2035

3.50%,

09/01/2035

3.50%,

04/01/2037

3.50%,

06/01/2037

3.50%,

02/01/2042

3.50%,

04/01/2042

3.50%,

06/01/2042

3.50%,

07/01/2042

3.50%,

07/01/2042

3.50%,

08/01/2042

3.50%,

08/01/2042

3.50%,

06/01/2044

3.50%,

09/01/2044

3.50%,

03/01/2045

3.50%,

06/01/2045

3.50%,

07/01/2045

3.50%,

09/01/2045

3.50%,

10/01/2045

3.50%,

12/01/2045

3.50%,

01/01/2046

3.50%,

03/01/2046

604

573

3.50%,

03/01/2046

3.50%,

04/01/2046

3.50%,

05/01/2046

3.50%,

06/01/2046

3.50%,

08/01/2046

3.50%,

04/01/2047

3.50%,

11/01/2047

3.50%,

11/01/2047

3.50%,

05/01/2048

4.00%,

12/01/2030

4.00%,

08/01/2031

4.00%,

10/01/2031

4.00%,

11/01/2031

4.00%,

12/01/2031

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

(continued)

4.00%,

11/01/2033

$

$

4.00%,

01/01/2034

4.00%,

07/01/2035

4.00%,

03/01/2037

4.00%,

05/01/2038

4.00%,

02/01/2041

4.00%,

06/01/2042

4.00%,

06/01/2042

4.00%,

08/01/2043

4.00%,

01/01/2044

4.00%,

02/01/2044

4.00%,

03/01/2044

4.00%,

04/01/2044

4.00%,

05/01/2044

4.00%,

07/01/2044

4.00%,

10/01/2044

4.00%,

11/01/2044

4.00%,

12/01/2044

4.00%,

01/01/2045

4.00%,

02/01/2045

4.00%,

04/01/2045

4.00%,

06/01/2045

4.00%,

08/01/2045

4.00%,

09/01/2045

4.00%,

10/01/2045

4.00%,

11/01/2045

4.00%,

12/01/2045

4.00%,

03/01/2047

4.00%,

08/01/2047

4.00%,

10/01/2047

4.00%,

12/01/2047

4.00%,

07/01/2048

4.00%,

08/01/2048

4.50%,

02/01/2030

4.50%,

08/01/2030

4.50%,

05/01/2031

4.50%,

06/01/2031

4.50%,

06/01/2039

4.50%,

10/01/2039

4.50%,

10/01/2040

4.50%,

03/01/2041

4.50%,

03/01/2041

4.50%,

11/01/2041

4.50%,

09/01/2043

4.50%,

11/01/2043

4.50%,

11/01/2043

4.50%,

01/01/2044

4.50%,

01/01/2044

4.50%,

05/01/2044

4.50%,

07/01/2044

4.50%,

10/01/2045

4.50%,

03/01/2047

4.50%,

04/01/2047

4.50%,

06/01/2047

4.50%,

09/01/2047

4.50%,

05/01/2048

4.50%,

07/01/2048

4.50%,

11/01/2048

4.50%,

01/01/2049

4.50%,

05/01/2049

5.00%,

12/01/2027

5.00%,

02/01/2030

5.00%,

03/01/2030

5.00%,

04/01/2034

5.00%,

06/01/2035

5.00%,

01/01/2038

5.00%,

11/01/2038

5.00%,

12/01/2038

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

(continued)

5.00%,

09/01/2039

$

$

5.00%,

01/01/2040

5.00%,

05/01/2040

5.00%,

04/01/2041

5.00%,

06/01/2041

5.00%,

11/01/2041

5.00%,

11/01/2041

5.50%,

01/01/2028

5.50%,

04/01/2036

5.50%,

12/01/2036

5.50%,

12/01/2036

5.50%,

03/01/2039

5.50%,

04/01/2039

5.50%,

02/01/2040

5.50%,

06/01/2041

6.00%,

02/01/2027

$

19,638

Federal

National

Mortgage

Association

(FNMA)/Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

Uniform

Mortgage-Backed

Security

-

.60

%

1.50%,

03/01/2036

1,145

1,039

1.50%,

05/01/2036

5,084

4,615

1.50%,

11/01/2036

2,378

2,164

1.50%,

11/01/2050

1,748

1,358

1.50%,

01/01/2051

3,009

2,322

1.50%,

06/01/2051

6,221

4,817

2.00%,

09/01/2028

2.00%,

05/01/2030

2.00%,

04/01/2032

2.00%,

02/01/2036

2,683

2,490

2.00%,

02/01/2036

1,359

1,259

2.00%,

04/01/2036

3,182

2,951

2.00%,

05/01/2036

2,470

2,289

2.00%,

06/01/2036

2,309

2,140

2.00%,

11/01/2041

5,086

4,427

2.00%,

05/01/2042

1,385

1,202

2.00%,

04/01/2051

6,640

5,489

2.00%,

04/01/2051

11,049

9,091

2.00%,

04/01/2051

13,174

10,862

2.00%,

05/01/2051

8,207

6,692

2.00%,

05/01/2051

10,029

8,252

2.00%,

11/01/2051

5,937

4,885

2.00%,

12/01/2051

7,584

6,231

2.00%,

12/01/2051

9,604

7,888

2.00%,

01/01/2052

7,160

5,867

2.50%,

01/01/2028

2.50%,

07/01/2028

2.50%,

08/01/2028

2.50%,

08/01/2028

2.50%,

09/01/2028

2.50%,

07/01/2029

2.50%,

07/01/2029

2.50%,

07/01/2029

2.50%,

09/01/2029

2.50%,

12/01/2029

2.50%,

01/01/2030

2.50%,

04/01/2030

2.50%,

05/01/2030

2.50%,

06/01/2030

2.50%,

08/01/2030

2.50%,

08/01/2030

2.50%,

01/01/2031

2.50%,

01/01/2031

2.50%,

02/01/2031

2.50%,

02/01/2031

2.50%,

05/01/2031

2.50%,

06/01/2031

2.50%,

11/01/2031

550

532

2.50%,

12/01/2031

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

Federal

National

Mortgage

Association

(FNMA)/Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

Uniform

Mortgage-Backed

Security

(continued)

2.50%,

01/01/2032

$

$

2.50%,

01/01/2032

2.50%,

02/01/2032

2.50%,

03/01/2032

2.50%,

03/01/2032

2.50%,

11/01/2032

2.50%,

12/01/2032

2.50%,

01/01/2033

2.50%,

02/01/2033

2.50%,

04/01/2033

2.50%,

07/01/2033

2.50%,

10/01/2034

2.50%,

10/01/2036

2.50%,

10/01/2036

2.50%,

12/01/2036

2.50%,

07/01/2040

1,234

1,123

2.50%,

01/01/2043

2.50%,

08/01/2043

2.50%,

10/01/2043

2.50%,

12/01/2046

2.50%,

08/01/2050

1,757

1,517

2.50%,

02/01/2051

1,584

1,365

2.50%,

02/01/2051

5,193

4,500

2.50%,

07/01/2051

1,638

1,396

2.50%,

09/01/2051

2,565

2,185

2.50%,

11/01/2051

5,694

4,923

2.50%,

11/01/2051

4,794

4,141

2.50%,

12/01/2051

2,853

2,443

2.50%,

01/01/2052

3,499

3,020

2.50%,

02/01/2052

2,759

2,347

2.50%,

02/01/2052

5,207

4,476

2.50%,

02/01/2052

3,946

3,401

2.50%,

02/01/2052

2,576

2,193

2.50%,

03/01/2052

4,854

4,169

2.50%,

04/01/2052

738

634

2.50%,

04/01/2052

5,371

4,617

2.50%,

05/01/2052

2,784

2,399

3.00%,

11/01/2026

3.00%,

02/01/2027

3.00%,

04/01/2027

3.00%,

08/01/2027

3.00%,

10/01/2028

3.00%,

11/01/2028

3.00%,

02/01/2029

3.00%,

03/01/2029

3.00%,

03/01/2029

3.00%,

04/01/2029

3.00%,

05/01/2029

3.00%,

06/01/2029

3.00%,

08/01/2029

3.00%,

10/01/2029

3.00%,

10/01/2029

3.00%,

10/01/2029

3.00%,

11/01/2029

3.00%,

01/01/2030

3.00%,

01/01/2030

3.00%,

01/01/2030

3.00%,

03/01/2030

3.00%,

06/01/2030

3.00%,

06/01/2030

3.00%,

09/01/2030

3.00%,

09/01/2030

3.00%,

10/01/2030

3.00%,

02/01/2031

3.00%,

04/01/2032

3.00%,

05/01/2032

3.00%,

08/01/2032

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

Federal

National

Mortgage

Association

(FNMA)/Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

Uniform

Mortgage-Backed

Security

(continued)

3.00%,

01/01/2033

$

$

3.00%,

02/01/2033

599

582

3.00%,

02/01/2033

3.00%,

08/01/2033

3.00%,

05/01/2034

3.00%,

05/01/2034

3.00%,

08/01/2034

3.00%,

10/01/2034

3.00%,

11/01/2034

3.00%,

02/01/2035

3.00%,

02/01/2035

3.00%,

03/01/2035

3.00%,

04/01/2035

3.00%,

06/01/2035

3.00%,

07/01/2035

3.00%,

11/01/2035

3.00%,

07/01/2036

3.00%,

12/01/2036

3.00%,

12/01/2036

3.00%,

12/01/2036

3.00%,

02/01/2037

3.00%,

02/01/2037

3.00%,

04/01/2037

3.00%,

04/01/2037

3.00%,

07/01/2037

3.00%,

08/01/2037

3.00%,

09/01/2037

3.00%,

06/01/2040

972

908

3.00%,

04/01/2042

3.00%,

09/01/2042

3.00%,

02/01/2043

3.00%,

02/01/2043

3.00%,

02/01/2043

3.00%,

04/01/2043

3.00%,

04/01/2043

3.00%,

04/01/2043

3.00%,

04/01/2043

3.00%,

04/01/2043

3.00%,

05/01/2043

3.00%,

05/01/2043

3.00%,

05/01/2043

3.00%,

05/01/2043

3.00%,

06/01/2043

3.00%,

07/01/2043

3.00%,

07/01/2043

3.00%,

08/01/2043

3.00%,

08/01/2043

3.00%,

11/01/2043

3.00%,

01/01/2045

3.00%,

05/01/2045

3.00%,

09/01/2045

3.00%,

10/01/2045

3.00%,

11/01/2045

3.00%,

12/01/2045

3.00%,

09/01/2046

3.00%,

10/01/2046

3.00%,

11/01/2046

3.00%,

11/01/2046

3.00%,

11/01/2046

3.00%,

11/01/2046

3.00%,

12/01/2046

573

521

3.00%,

12/01/2046

3.00%,

01/01/2047

3.00%,

02/01/2047

3.00%,

02/01/2047

3.00%,

05/01/2047

3.00%,

10/01/2048

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

Federal

National

Mortgage

Association

(FNMA)/Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

Uniform

Mortgage-Backed

Security

(continued)

3.00%,

10/01/2049

$

3,786

$

3,397

3.00%,

11/01/2049

884

793

3.00%,

03/01/2050

2,590

2,330

3.00%,

03/01/2050

2,729

2,442

3.00%,

03/01/2052

2,353

2,118

3.00%,

03/01/2052

2,707

2,420

3.00%,

04/01/2052

1,586

1,432

3.00%,

05/01/2052

3,084

2,733

3.50%,

03/01/2026

3.50%,

12/01/2026

3.50%,

02/01/2027

3.50%,

11/01/2028

3.50%,

12/01/2028

3.50%,

03/01/2029

3.50%,

01/01/2031

3.50%,

04/01/2031

3.50%,

02/01/2032

3.50%,

04/01/2032

3.50%,

05/01/2032

3.50%,

06/01/2032

3.50%,

07/01/2032

3.50%,

09/01/2032

3.50%,

12/01/2032

689

682

3.50%,

09/01/2033

3.50%,

09/01/2033

3.50%,

10/01/2033

3.50%,

10/01/2033

3.50%,

11/01/2033

3.50%,

01/01/2034

3.50%,

06/01/2034

3.50%,

08/01/2034

3.50%,

11/01/2034

3.50%,

02/01/2035

3.50%,

12/01/2035

3.50%,

07/01/2036

3.50%,

02/01/2037

3.50%,

03/01/2037

3.50%,

05/01/2037

3.50%,

07/01/2037

3.50%,

10/01/2037

3.50%,

01/01/2038

3.50%,

01/01/2041

3.50%,

03/01/2041

3.50%,

10/01/2041

3.50%,

12/01/2041

3.50%,

12/01/2041

3.50%,

01/01/2042

3.50%,

03/01/2042

3.50%,

03/01/2042

3.50%,

03/01/2042

3.50%,

05/01/2042

3.50%,

05/01/2042

3.50%,

07/01/2042

3.50%,

07/01/2042

3.50%,

10/01/2042

3.50%,

04/01/2043

3.50%,

05/01/2043

3.50%,

05/01/2043

3.50%,

05/01/2043

3.50%,

06/01/2043

3.50%,

07/01/2043

3.50%,

07/01/2043

3.50%,

08/01/2043

3.50%,

08/01/2043

3.50%,

09/01/2043

3.50%,

12/01/2043

3.50%,

01/01/2044

597

569

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

Federal

National

Mortgage

Association

(FNMA)/Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

Uniform

Mortgage-Backed

Security

(continued)

3.50%,

02/01/2044

$

$

3.50%,

07/01/2044

3.50%,

10/01/2044

3.50%,

10/01/2044

3.50%,

11/01/2044

3.50%,

12/01/2044

3.50%,

12/01/2044

3.50%,

04/01/2045

3.50%,

07/01/2045

3.50%,

08/01/2045

3.50%,

09/01/2045

3.50%,

09/01/2045

3.50%,

11/01/2045

3.50%,

11/01/2045

3.50%,

12/01/2045

3.50%,

01/01/2046

3.50%,

02/01/2046

3.50%,

03/01/2046

3.50%,

09/01/2046

3.50%,

11/01/2046

3.50%,

12/01/2046

3.50%,

02/01/2047

3.50%,

09/01/2047

3.50%,

11/01/2047

3.50%,

01/01/2048

3.50%,

02/01/2048

3.50%,

03/01/2048

3.50%,

04/01/2048

3.50%,

10/01/2048

3.50%,

04/01/2049

3.50%,

06/01/2049

3.50%,

08/01/2049

3.50%,

11/01/2049

2,549

2,405

3.50%,

11/01/2049

817

765

3.50%,

12/01/2049

1,081

1,027

3.50%,

01/01/2052

3,723

3,477

3.50%,

04/01/2052

1,306

1,217

3.50%,

06/01/2052

1,510

1,407

4.00%,

04/01/2029

4.00%,

10/01/2030

4.00%,

12/01/2030

4.00%,

02/01/2031

4.00%,

03/01/2031

4.00%,

07/01/2031

4.00%,

10/01/2031

4.00%,

11/01/2031

4.00%,

12/01/2031

4.00%,

01/01/2032

4.00%,

09/01/2033

4.00%,

01/01/2036

4.00%,

02/01/2036

4.00%,

06/01/2036

4.00%,

01/01/2037

4.00%,

02/01/2037

4.00%,

07/01/2038

4.00%,

02/01/2039

4.00%,

01/01/2041

4.00%,

02/01/2041

4.00%,

02/01/2041

4.00%,

09/01/2041

4.00%,

02/01/2043

4.00%,

12/01/2043

4.00%,

01/01/2044

4.00%,

06/01/2044

4.00%,

07/01/2044

4.00%,

07/01/2044

4.00%,

09/01/2044

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

Federal

National

Mortgage

Association

(FNMA)/Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

Uniform

Mortgage-Backed

Security

(continued)

4.00%,

10/01/2044

$

$

4.00%,

02/01/2045

4.00%,

07/01/2045

4.00%,

10/01/2045

4.00%,

11/01/2045

4.00%,

12/01/2045

4.00%,

02/01/2046

4.00%,

03/01/2046

4.00%,

04/01/2047

4.00%,

08/01/2047

4.00%,

08/01/2047

4.00%,

08/01/2047

4.00%,

09/01/2047

4.00%,

11/01/2047

4.00%,

02/01/2048

4.00%,

03/01/2048

4.00%,

06/01/2048

4.00%,

06/01/2048

4.00%,

07/01/2048

4.00%,

08/01/2048

4.00%,

09/01/2048

4.00%,

01/01/2049

1,453

1,404

4.00%,

03/01/2049

4.00%,

04/01/2049

4.00%,

04/01/2049

4.00%,

08/01/2049

4.00%,

10/01/2049

4.00%,

11/01/2049

4.00%,

04/01/2050

1,410

1,356

4.00%,

06/01/2052

1,788

1,725

4.00%,

08/01/2052

3,135

2,992

4.00%,

09/01/2052

4,001

3,834

4.00%,

10/01/2052

850

813

4.50%,

02/01/2030

4.50%,

04/01/2030

4.50%,

08/01/2030

4.50%,

09/01/2030

4.50%,

01/01/2031

4.50%,

04/01/2031

4.50%,

05/01/2031

4.50%,

07/01/2031

4.50%,

08/01/2031

4.50%,

02/01/2035

4.50%,

08/01/2040

4.50%,

08/01/2040

4.50%,

06/01/2041

4.50%,

09/01/2041

4.50%,

09/01/2043

4.50%,

10/01/2043

4.50%,

01/01/2044

4.50%,

01/01/2044

4.50%,

02/01/2044

4.50%,

03/01/2044

4.50%,

03/01/2044

4.50%,

05/01/2044

4.50%,

05/01/2044

4.50%,

05/01/2044

4.50%,

06/01/2044

4.50%,

08/01/2044

4.50%,

12/01/2044

4.50%,

04/01/2046

4.50%,

08/01/2046

4.50%,

02/01/2047

4.50%,

02/01/2047

4.50%,

03/01/2047

4.50%,

10/01/2047

4.50%,

11/01/2047

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

Federal

National

Mortgage

Association

(FNMA)/Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

Uniform

Mortgage-Backed

Security

(continued)

4.50%,

02/01/2048

$

$

4.50%,

04/01/2048

4.50%,

05/01/2048

4.50%,

07/01/2048

1,331

1,316

4.50%,

08/01/2048

4.50%,

08/01/2048

4.50%,

10/01/2048

4.50%,

10/01/2048

4.50%,

12/01/2048

839

839

4.50%,

03/01/2049

1,570

1,558

4.50%,

04/01/2049

4.50%,

05/01/2049

974

965

4.50%,

07/01/2049

4.50%,

07/01/2049

4.50%,

09/01/2049

1,471

1,457

4.50%,

09/01/2049

4.50%,

06/01/2052

4.50%,

09/01/2052

1,849

1,832

4.50%,

10/01/2052

1,568

1,548

4.50%,

10/01/2052

1,908

1,882

4.50%,

05/01/2053

2,086

2,053

5.00%,

04/01/2029

5.00%,

09/01/2029

5.00%,

03/01/2030

5.00%,

08/01/2030

5.00%,

07/01/2035

5.00%,

04/01/2037

5.00%,

07/01/2039

5.00%,

07/01/2039

5.00%,

03/01/2044

5.00%,

03/01/2044

5.00%,

05/01/2044

5.00%,

11/01/2044

5.00%,

04/01/2048

5.00%,

09/01/2048

5.00%,

05/01/2049

5.00%,

06/01/2049

5.00%,

07/01/2049

5.00%,

08/01/2049

5.00%,

07/01/2052

2,641

2,666

5.00%,

08/01/2052

1,704

1,721

5.00%,

11/01/2052

3,704

3,741

5.00%,

05/01/2053

4,518

4,560

5.00%,

06/01/2053

2,431

2,450

5.00%,

10/01/2053

2,069

2,091

5.50%,

03/01/2027

5.50%,

06/01/2028

5.50%,

01/01/2029

5.50%,

12/01/2029

5.50%,

11/01/2035

5.50%,

12/01/2036

5.50%,

03/01/2037

5.50%,

08/01/2037

5.50%,

08/01/2037

5.50%,

08/01/2037

5.50%,

05/01/2038

5.50%,

06/01/2038

5.50%,

03/01/2053

2,807

2,883

5.50%,

07/01/2053

1,991

2,067

5.50%,

08/01/2053

5,047

5,158

5.50%,

11/01/2053

4,576

4,697

5.50%,

03/01/2054

2,419

2,464

5.50%,

04/01/2054

3,385

3,472

5.50%,

08/01/2054

2,359

2,407

5.50%,

10/01/2054

1,820

1,866

5.50%,

02/01/2055

1,410

1,440

5.50%,

04/01/2055

1,892

1,938

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

Federal

National

Mortgage

Association

(FNMA)/Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

Uniform

Mortgage-Backed

Security

(continued)

6.00%,

05/01/2041

$

$

6.00%,

01/01/2053

1,496

1,571

6.00%,

05/01/2053

1,123

1,169

6.00%,

11/01/2053

3,297

3,429

6.00%,

06/01/2054

2,300

2,389

6.00%,

07/01/2054

2,579

2,683

6.00%,

08/01/2054

1,846

1,923

6.00%,

09/01/2054

2,614

2,724

6.00%,

11/01/2054

1,916

1,991

6.00%,

11/01/2054

2,300

2,390

6.00%,

09/01/2055

2,286

2,371

6.50%,

01/01/2038

6.50%,

01/01/2054

2,403

2,534

6.50%,

01/01/2054

2,067

2,157

6.50%,

02/01/2054

2,707

2,848

6.50%,

05/01/2054

918

958

6.50%,

04/01/2055

1,965

2,072

6.50%,

05/01/2055

1,545

1,606

$

317,166

Government

National

Mortgage

Association

(GNMA)

-

.05

%

2.00%,

08/20/2050

3,167

2,625

2.00%,

01/20/2051

5,889

4,879

2.00%,

02/20/2051

5,393

4,467

2.00%,

05/20/2051

4,060

3,363

2.50%,

03/20/2028

2.50%,

07/20/2028

2.50%,

03/20/2031

2.50%,

05/20/2032

2.50%,

07/20/2043

2.50%,

06/20/2045

2.50%,

12/20/2046

2.50%,

01/20/2047

2.50%,

06/20/2050

6,217

5,374

2.50%,

05/20/2051

6,721

5,800

2.50%,

09/20/2051

5,971

5,153

3.00%,

07/20/2030

3.00%,

01/20/2031

3.00%,

07/20/2032

3.00%,

01/20/2033

3.00%,

10/15/2042

3.00%,

03/20/2043

3.00%,

04/20/2043

3.00%,

06/15/2043

3.00%,

07/15/2043

3.00%,

08/15/2043

3.00%,

08/15/2043

3.00%,

11/15/2044

3.00%,

02/15/2045

3.00%,

05/20/2045

3.00%,

07/15/2045

3.00%,

08/15/2045

3.00%,

08/20/2045

3.00%,

10/20/2045

3.00%,

11/20/2045

3.00%,

12/20/2045

3.00%,

01/20/2046

3.00%,

02/20/2046

3.00%,

03/20/2046

3.00%,

05/20/2046

3.00%,

06/20/2046

3.00%,

08/20/2046

3.00%,

09/20/2046

3.00%,

10/20/2046

3.00%,

12/20/2046

3.00%,

01/20/2047

3.00%,

07/20/2047

3.00%,

10/20/2047

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

Government

National

Mortgage

Association

(GNMA)

(continued)

3.00%,

11/20/2047

$

$

3.00%,

12/20/2047

3.00%,

01/20/2048

3.00%,

02/20/2048

3.00%,

03/20/2048

3.00%,

11/20/2049

3,618

3,266

3.00%,

09/20/2051

4,250

3,824

3.00%,

12/20/2051

733

659

3.50%,

09/20/2028

3.50%,

01/15/2043

3.50%,

03/20/2043

3.50%,

04/15/2043

3.50%,

04/20/2043

3.50%,

08/15/2043

3.50%,

08/20/2043

3.50%,

09/20/2043

3.50%,

07/20/2044

3.50%,

08/20/2044

3.50%,

09/20/2044

3.50%,

10/20/2044

3.50%,

11/20/2044

3.50%,

12/20/2044

3.50%,

02/20/2045

3.50%,

05/20/2045

3.50%,

06/20/2045

3.50%,

07/20/2045

3.50%,

08/20/2045

3.50%,

09/20/2045

3.50%,

10/20/2045

3.50%,

11/20/2045

3.50%,

12/20/2045

3.50%,

01/20/2046

3.50%,

02/20/2046

3.50%,

03/20/2046

1,015

946

3.50%,

04/20/2046

3.50%,

05/20/2046

3.50%,

06/20/2046

969

903

3.50%,

07/15/2046

3.50%,

07/20/2046

3.50%,

08/20/2046

521

3.50%,

09/20/2046

3.50%,

10/20/2046

3.50%,

11/20/2046

3.50%,

12/20/2046

3.50%,

01/20/2047

3.50%,

02/20/2047

3.50%,

03/20/2047

3.50%,

04/20/2047

3.50%,

05/20/2047

3.50%,

06/20/2047

3.50%,

08/20/2047

540

504

3.50%,

09/20/2047

3.50%,

10/20/2047

3.50%,

11/20/2047

3.50%,

12/20/2047

3.50%,

01/20/2048

3.50%,

02/20/2048

3.50%,

07/20/2048

3.50%,

04/20/2052

1,602

1,471

4.00%,

08/15/2040

4.00%,

12/20/2040

4.00%,

08/15/2041

4.00%,

11/15/2041

4.00%,

03/15/2042

4.00%,

03/20/2042

4.00%,

04/20/2042

4.00%,

05/15/2042

4.00%,

10/20/2043

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

Government

National

Mortgage

Association

(GNMA)

(continued)

4.00%,

11/20/2043

$

$

4.00%,

02/20/2044

4.00%,

03/15/2044

4.00%,

05/20/2044

4.00%,

06/20/2044

4.00%,

07/20/2044

4.00%,

08/20/2044

4.00%,

09/20/2044

4.00%,

10/20/2044

4.00%,

11/20/2044

4.00%,

12/20/2044

4.00%,

01/20/2045

4.00%,

04/20/2045

4.00%,

05/15/2045

4.00%,

07/20/2045

4.00%,

08/20/2045

4.00%,

09/20/2045

4.00%,

10/20/2045

4.00%,

11/20/2045

4.00%,

12/15/2045

4.00%,

12/20/2045

4.00%,

01/20/2046

4.00%,

02/20/2046

4.00%,

04/20/2046

4.00%,

05/20/2046

4.00%,

07/20/2046

4.00%,

01/20/2047

4.00%,

02/20/2047

4.00%,

03/20/2047

4.00%,

05/20/2047

4.00%,

06/20/2047

4.00%,

07/20/2047

4.00%,

08/20/2047

4.00%,

10/20/2047

4.00%,

11/20/2047

871

839

4.00%,

04/20/2052

2,412

2,298

4.50%,

02/15/2039

4.50%,

05/15/2039

4.50%,

11/15/2039

4.50%,

04/15/2040

4.50%,

01/20/2041

4.50%,

02/20/2041

4.50%,

03/20/2041

4.50%,

07/15/2041

4.50%,

05/20/2043

4.50%,

06/20/2043

4.50%,

10/20/2043

4.50%,

11/20/2043

4.50%,

03/20/2044

4.50%,

04/20/2044

4.50%,

05/20/2044

4.50%,

07/20/2044

4.50%,

12/20/2044

4.50%,

02/20/2045

4.50%,

03/20/2045

4.50%,

04/20/2045

4.50%,

06/20/2046

4.50%,

12/20/2046

4.50%,

02/20/2047

4.50%,

04/20/2047

4.50%,

06/15/2047

4.50%,

08/20/2047

4.50%,

10/20/2047

4.50%,

02/20/2048

692

688

4.50%,

05/20/2048

513

508

4.50%,

08/20/2048

4.50%,

10/20/2048

4.50%,

11/20/2048

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

Government

National

Mortgage

Association

(GNMA)

(continued)

4.50%,

12/20/2048

$

$

4.50%,

02/20/2049

2,207

2,186

4.50%,

05/20/2052

1,401

1,376

4.50%,

09/20/2052

2,621

2,572

4.50%,

06/20/2053

1,142

1,117

5.00%,

08/20/2041

5.00%,

04/20/2042

5.00%,

12/20/2042

5.00%,

07/20/2043

5.00%,

02/20/2044

5.00%,

03/20/2044

5.00%,

12/20/2045

5.00%,

03/20/2048

5.00%,

06/20/2048

549

556

5.00%,

10/20/2048

5.00%,

01/20/2053

5,141

5,148

5.00%,

04/20/2053

3,324

3,329

5.00%,

09/20/2053

630

631

5.00%,

01/20/2056

(j) 2,800

2,793

5.50%,

01/15/2040

5.50%,

06/20/2040

5.50%,

01/20/2041

5.50%,

10/20/2042

5.50%,

09/20/2043

5.50%,

03/20/2053

2,450

2,491

5.50%,

06/20/2053

5.50%,

08/20/2053

3,328

3,381

5.50%,

10/20/2053

1,374

1,395

5.50%,

12/20/2053

2,384

2,419

5.50%,

04/20/2054

2,049

2,076

5.50%,

07/20/2054

1,667

1,686

6.00%,

04/15/2035

6.00%,

07/20/2053

2,553

2,615

6.00%,

10/20/2053

2,083

2,126

6.00%,

03/20/2054

871

889

6.50%,

01/20/2056

(j) 3,275

3,385

$

109,092

U.S.

Treasury

-

.58

%

0.38%,

09/30/2027

4,520

4,284

0.50%,

04/30/2027

2,100

2,019

0.50%,

05/31/2027

3,290

3,156

0.50%,

06/30/2027

4,645

4,445

0.50%,

08/31/2027

5,260

5,009

0.50%,

10/31/2027

10,120

9,589

0.63%,

03/31/2027

5,975

5,768

0.63%,

11/30/2027

4,645

4,402

0.63%,

12/31/2027

8,210

7,761

0.63%,

05/15/2030

12,025

10,552

0.63%,

08/15/2030

20,910

18,196

0.75%,

01/31/2028

7,610

7,195

0.88%,

11/15/2030

14,710

12,859

1.00%,

07/31/2028

5,825

5,466

1.13%,

02/28/2027

2,670

2,598

1.13%,

02/29/2028

5,895

5,607

1.13%,

08/31/2028

4,875

4,580

1.13%,

02/15/2031

11,515

10,138

1.13%,

05/15/2040

2,620

1,662

1.13%,

08/15/2040

2,740

1,721

1.25%,

03/31/2028

7,125

6,781

1.25%,

04/30/2028

6,000

5,700

1.25%,

05/31/2028

6,120

5,803

1.25%,

06/30/2028

4,550

4,306

1.25%,

09/30/2028

7,740

7,281

1.25%,

08/15/2031

8,315

7,244

1.25%,

05/15/2050

2,600

1,245

1.38%,

10/31/2028

4,505

4,244

1.38%,

12/31/2028

4,880

4,582

1.38%,

11/15/2031

10,870

9,468

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

U.S.

Treasury

(continued)

1.38%,

11/15/2040

$

1,610

$

1,045

1.38%,

08/15/2050

4,335

2,131

1.50%,

01/31/2027

4,470

4,375

1.50%,

11/30/2028

6,115

5,772

1.50%,

02/15/2030

12,800

11,757

1.63%,

08/15/2029

7,300

6,814

1.63%,

05/15/2031

10,330

9,255

1.63%,

11/15/2050

2,730

1,433

1.75%,

01/31/2029

5,065

4,799

1.75%,

11/15/2029

4,890

4,567

1.75%,

08/15/2041

4,110

2,773

1.88%,

02/28/2027

7,230

7,096

1.88%,

02/28/2029

3,895

3,699

1.88%,

02/15/2032

8,670

7,732

1.88%,

02/15/2041

1,245

870

1.88%,

02/15/2051

4,720

2,638

1.88%,

11/15/2051

4,600

2,543

2.00%,

11/15/2041

4,010

2,799

2.00%,

02/15/2050

2,785

1,633

2.00%,

08/15/2051

4,390

2,515

2.25%,

02/15/2027

4,825

4,758

2.25%,

11/15/2027

8,485

8,297

2.25%,

05/15/2041

3,110

2,287

2.25%,

08/15/2046

3,195

2,103

2.25%,

08/15/2049

2,580

1,618

2.25%,

02/15/2052

4,015

2,436

2.38%,

05/15/2027

4,545

4,477

2.38%,

03/31/2029

3,685

3,550

2.38%,

05/15/2029

4,695

4,514

2.38%,

02/15/2042

1,865

1,373

2.38%,

11/15/2049

2,485

1,596

2.38%,

05/15/2051

4,540

2,861

2.50%,

03/31/2027

4,305

4,252

2.50%,

02/15/2045

1,550

1,098

2.50%,

02/15/2046

2,925

2,037

2.50%,

05/15/2046

2,520

1,748

2.63%,

05/31/2027

3,330

3,290

2.63%,

02/15/2029

8,305

8,075

2.63%,

07/31/2029

2,325

2,249

2.75%,

04/30/2027

3,660

3,625

2.75%,

07/31/2027

6,175

6,105

2.75%,

02/15/2028

5,775

5,688

2.75%,

05/31/2029

7,280

7,085

2.75%,

08/15/2032

10,275

9,578

2.75%,

08/15/2042

1,591

1,228

2.75%,

11/15/2042

2,165

1,664

2.75%,

08/15/2047

2,080

1,486

2.75%,

11/15/2047

2,335

1,663

2.88%,

05/15/2028

4,500

4,436

2.88%,

08/15/2028

6,030

5,933

2.88%,

04/30/2029

7,835

7,662

2.88%,

05/15/2032

10,930

10,306

2.88%,

05/15/2043

2,333

1,811

2.88%,

08/15/2045

2,145

1,609

2.88%,

11/15/2046

1,465

1,082

2.88%,

05/15/2049

2,995

2,149

2.88%,

05/15/2052

4,000

2,795

3.00%,

05/15/2042

1,200

966

3.00%,

11/15/2044

1,475

1,141

3.00%,

05/15/2045

1,845

1,420

3.00%,

11/15/2045

1,320

1,009

3.00%,

02/15/2047

3,115

2,345

3.00%,

05/15/2047

2,050

1,539

3.00%,

02/15/2048

2,445

1,819

3.00%,

08/15/2048

2,670

1,977

3.00%,

02/15/2049

3,200

2,357

3.00%,

08/15/2052

3,500

2,507

3.13%,

08/31/2027

6,040

6,005

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

U.S.

Treasury

(continued)

3.13%,

11/15/2028

$

5,585

$

5,523

3.13%,

08/31/2029

3,885

3,819

3.13%,

11/15/2041

1,700

1,406

3.13%,

02/15/2042

805

662

3.13%,

02/15/2043

1,865

1,508

3.13%,

08/15/2044

3,045

2,410

3.13%,

05/15/2048

3.25%,

06/30/2029

2,055

2,032

3.25%,

05/15/2042

3,650

3,044

3.38%,

05/15/2033

6,730

6,470

3.38%,

08/15/2042

2,565

2,167

3.38%,

05/15/2044

2,350

1,940

3.38%,

11/15/2048

2,820

2,231

3.50%,

01/31/2028

3.50%,

04/30/2028

4,915

4,914

3.50%,

09/30/2029

9,405

9,361

3.50%,

01/31/2030

2,375

2,361

3.50%,

02/15/2033

6,095

5,923

3.50%,

02/15/2039

3.63%,

05/31/2028

4,475

4,487

3.63%,

03/31/2030

6,035

6,024

3.63%,

09/30/2030

7,130

7,102

3.63%,

08/15/2043

1,880

1,623

3.63%,

02/15/2044

1,755

1,507

3.63%,

02/15/2053

3,705

3,000

3.63%,

05/15/2053

3,440

2,783

3.75%,

06/30/2027

7,935

7,966

3.75%,

04/15/2028

8,510

8,554

3.75%,

06/30/2030

3,430

3,438

3.75%,

12/31/2030

3,960

3,962

3.75%,

08/15/2041

940

847

3.75%,

11/15/2043

1,935

1,696

3.88%,

03/31/2027

10,390

10,435

3.88%,

09/30/2029

3.88%,

11/30/2029

4,885

4,926

3.88%,

08/31/2032

4,755

4,743

3.88%,

08/15/2033

8,305

8,236

3.88%,

08/15/2034

7,795

7,675

3.88%,

08/15/2040

894

828

3.88%,

02/15/2043

3,170

2,852

3.88%,

05/15/2043

3,270

2,933

4.00%,

01/15/2027

(d) 2,715

2,728

4.00%,

12/15/2027

6,325

6,386

4.00%,

06/30/2028

7,340

7,426

4.00%,

10/31/2029

7,165

7,259

4.00%,

02/28/2030

8,115

8,218

4.00%,

05/31/2030

5,365

5,433

4.00%,

06/30/2032

5,885

5,919

4.00%,

02/15/2034

8,175

8,149

4.00%,

11/15/2042

2,365

2,168

4.00%,

11/15/2052

3,315

2,875

4.13%,

01/31/2027

4,090

4,115

4.13%,

09/30/2027

755

763

4.13%,

10/31/2027

4,930

4,985

4.13%,

11/15/2027

4,570

4,622

4.13%,

02/29/2032

6,160

6,247

4.13%,

11/15/2032

8,220

8,314

4.13%,

08/15/2053

3,395

3,005

4.25%,

03/15/2027

5,405

5,451

4.25%,

06/30/2029

7,725

7,888

4.25%,

01/31/2030

5,095

5,208

4.25%,

02/28/2031

4,605

4,711

4.25%,

11/15/2034

7,140

7,215

4.25%,

05/15/2035

6,200

6,251

4.25%,

08/15/2035

6,145

6,189

4.25%,

05/15/2039

715

700

4.25%,

11/15/2040

970

936

4.25%,

02/15/2054

2,605

2,355

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

U.S.

Treasury

(continued)

4.25%,

08/15/2054

$

3,490

$

3,155

4.38%,

05/15/2034

7,800

7,971

4.38%,

02/15/2038

4.38%,

11/15/2039

1,015

1,001

4.38%,

05/15/2040

854

839

4.38%,

05/15/2041

1,655

1,613

4.38%,

08/15/2043

3,250

3,104

4.50%,

04/15/2027

13,345

13,509

4.50%,

11/15/2033

8,965

9,257

4.50%,

02/15/2036

700

723

4.50%,

05/15/2038

710

723

4.50%,

08/15/2039

995

997

4.50%,

02/15/2044

1,310

1,267

4.50%,

11/15/2054

4,415

4,164

4.63%,

02/15/2035

8,635

8,963

4.63%,

02/15/2040

2,275

2,300

4.63%,

05/15/2054

10,455

10,069

4.63%,

02/15/2055

4,290

4,132

4.75%,

02/15/2037

1,635

1,713

4.75%,

02/15/2041

1,120

1,140

4.75%,

02/15/2045

1,540

1,532

4.75%,

11/15/2053

4,065

3,991

4.75%,

05/15/2055

1,845

1,813

4.75%,

08/15/2055

2,415

2,374

5.00%,

05/15/2037

1,130

1,209

5.25%,

02/15/2029

3,000

3,155

5.38%,

02/15/2031

3,616

3,888

6.13%,

11/15/2027

2,225

2,330

6.13%,

08/15/2029

900

976

6.25%,

05/15/2030

1,500

1,654

6.38%,

08/15/2027

1,830

1,913

$

821,411

TOTAL

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

$

1,267,307

Total

Investments

$

1,807,204

Other

Assets

and

Liabilities

- (0.28)%

(5,055)

TOTAL

NET

ASSETS

-

100.00%

$

1,802,149

(a) 1-day

yield

shown

is

as

of

period

end.

(b) Security

or

a

portion

of

the

security

was

received

as

collateral

for

securities

lending.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$5,321

or

0.30%

of

net

assets.

(c) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(d) Security

or

a

portion

of

the

security

was

on

loan. At

the

end

of

the

period,

the

value

of

these

securities

totaled

$5,114

or

0.28%

of

net

assets.

(e) Rate

shown

is

as

of

period

end.

The

rate

may

be

a

variable

or

floating

rate

or

a

fixed

rate

which

may

convert

to

a

variable

or

floating

rate

in

the

future.

(f) Non-income

producing

security

(g) Security

exempt

from

registration

under

Rule

144A

of

the

Securities

Act

of

1933. These

securities

may

be

resold

in

transactions

exempt

from

registration,

normally

to

qualified

institutional

buyers.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$1,730

or

0.10%

of

net

assets.

(h) Certain

variable

rate

securities

are

not

based

on

a

published

reference

rate

and

spread

but

are

determined

by

the

issuer

or

agent

and

are

based

on

current

market

conditions. These

securities

do

not

indicate

a

reference

rate

and

spread

in

their

description.

Rate

shown

is

the

rate

in

effect

as

of

period

end.

(i) Credit

support

indicates

investments

that

benefit

from

credit

enhancement

or

liquidity

support

provided

by

a

third

party

bank,

institution,

or

government

agency.

(j) Security

was

purchased

in

a

"to-be-announced"

("TBA")

transaction.

Schedule

of

Investments

Bond

Market

Index

Account

December

31,

2025

See

accompanying

notes.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

46,078

$

565,572

$

592,000

$

19,650

$

46,078

$

565,572

$

592,000

$

19,650

Income

(a) Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

1,042

$

—

$

—

$

—

$

1,042

$

—

$

—

$

—

Amounts

in

thousands.

(a) Amount

excludes

earnings

from

securities

lending

collateral.

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.69

%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

.56

%

iShares

Broad

USD

High

Yield

Corporate

Bond

ETF

221,000

$

8,264

Vanguard

Short-Term

Corporate

Bond

ETF

(a) 37,000

2,950

$

11,214

Money

Market

Funds

-

.13

%

BlackRock

Liquidity

FedFund

-

Institutional

Class

3.64%

(b),(c)

158,380

Principal

Government

Money

Market

Fund

-

Class

3.67%

(b),(c),(d)

7,560,952

7,561

$

7,719

TOTAL

INVESTMENT

COMPANIES

$

18,933

BONDS

-

.38

%

Principal

Amount

(000's)

Value

(000's)

Aerospace

&

Defense

-

.08

%

Boeing

Co/The

5.15%,

05/01/2030

$

$

5.81%,

05/01/2050

890

876

7.01%,

05/01/2064

Bombardier

Inc

7.50%,

02/01/2029

(e) 50

Northrop

Grumman

Corp

4.95%,

03/15/2053

5.25%,

07/15/2035

RTX

Corp

3.03%,

03/15/2052

(a) 215

5.38%,

02/27/2053

6.10%,

03/15/2034

6.40%,

03/15/2054

TransDigm

Inc

6.38%,

03/01/2029

(e) 100

6.75%,

01/31/2034

(e) 288

$

2,650

Agriculture

-

.88

%

BAT

Capital

Corp

4.54%,

08/15/2047

4.63%,

03/22/2033

4.76%,

09/06/2049

5.35%,

08/15/2032

5.83%,

02/20/2031

7.08%,

08/02/2053

JBS

USA

LUX

Sarl

/

JBS

USA

Food

Co

/

JBS

USA

Foods

Group

5.95%,

04/20/2035

(e) 315

Philip

Morris

International

Inc

4.38%,

04/30/2030

4.63%,

11/01/2029

4.63%,

10/29/2035

Reynolds

American

Inc

5.70%,

08/15/2035

$

2,165

Airlines

-

.06

%

American

Airlines

Inc

8.50%,

05/15/2029

(e) 93

American

Airlines

Inc/AAdvantage

Loyalty

IP

Ltd

5.75%,

04/20/2029

(e) 197

AS

Mileage

Plan

IP

Ltd

5.02%,

10/20/2029

(e) 445

5.31%,

10/20/2031

(e) 145

Delta

Air

Lines

Inc

/

SkyMiles

IP

Ltd

4.75%,

10/20/2028

(e) 1,000

1,006

Grupo

Aeromexico

SAB

de

CV

8.63%,

11/15/2031

(e) 200

United

Airlines

2024-1

Class

A

Pass

Through

Trust

5.88%,

08/15/2038

510

$

2,612

Apparel

-

.04

%

Gildan

Activewear

Inc

4.70%,

10/07/2030

(e) 95

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Automobile

Asset

Backed

Securities

-

.98

%

Ally

Auto

Receivables

Trust

2023-1

5.46%,

05/15/2028

$

$

Ally

Auto

Receivables

Trust

2025-1

4.03%,

07/17/2028

650

650

AutoNation

Finance

Trust

2025-1

5.63%,

09/10/2032

(e) 200

BofA

Auto

Trust

2025-1

4.47%,

11/22/2027

(e) 119

1.00 x

Day

Average

Secured

Overnight

Financing

Rate

+

0.55%

Capital

One

Prime

Auto

Receivables

Trust

2025-1

3.88%,

01/16/2029

950

951

Carmax

Auto

Owner

Trust

2024-3

5.21%,

09/15/2027

Chase

Auto

Owner

Trust

2024-4

5.25%,

09/27/2027

(e) 38

Chase

Auto

Owner

Trust

2024-5

4.18%,

08/27/2029

(e) 555

557

Drive

Auto

Receivables

Trust

2024-2

4.94%,

12/15/2027

Drive

Auto

Receivables

Trust

2025-2

4.29%,

10/16/2028

750

750

Ford

Credit

Floorplan

Master

Owner

Trust

A

4.30%,

09/15/2029

(e) 200

GM

Financial

Automobile

Leasing

Trust

2024-3

4.21%,

10/20/2027

4.39%,

01/20/2027

1.00 x

Day

Average

Secured

Overnight

Financing

Rate

+

0.47%

Gm

Financial

Automobile

Leasing

Trust

2025-2

4.42%,

07/20/2027

619

620

1.00 x

Day

Average

Secured

Overnight

Financing

Rate

+

0.50%

Mercedes-Benz

Auto

Lease

Trust

2024-A

5.44%,

02/16/2027

Mercedes-Benz

Auto

Lease

Trust

2025-A

4.50%,

04/17/2028

575

576

1.00 x

Day

Average

Secured

Overnight

Financing

Rate

+

0.52%

4.61%,

04/16/2029

600

608

Nissan

Auto

Receivables

2025-A

Owner

Trust

4.43%,

02/15/2028

675

676

1.00 x

Day

Average

Secured

Overnight

Financing

Rate

+

0.45%

Porsche

Innovative

Lease

Owner

Trust

2024-1

4.84%,

01/20/2027

(e) 126

Santander

Drive

Auto

Receivables

Trust

2023-4

5.73%,

04/17/2028

Santander

Drive

Auto

Receivables

Trust

2024-1

5.25%,

04/17/2028

Santander

Drive

Auto

Receivables

Trust

2025-1

4.76%,

08/16/2027

Santander

Drive

Auto

Receivables

Trust

2025-2

4.71%,

06/15/2028

Santander

Drive

Auto

Receivables

Trust

2025-3

4.63%,

10/16/2028

976

979

Santander

Drive

Auto

Receivables

Trust

2025-4

4.28%,

01/15/2029

690

692

Toyota

Lease

Owner

Trust

2024-B

4.21%,

09/20/2027

(e) 625

626

USB

Auto

Owner

Trust

2025-1

5.40%,

12/15/2032

(e) 200

Volkswagen

Auto

Lease

Trust

2025-B

3.97%,

04/20/2028

515

516

Wheels

Fleet

Lease

Funding

LLC

4.99%,

01/18/2040

(e) 615

615

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

0.67%

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Automobile

Asset

Backed

Securities

(continued)

World

Omni

Auto

Receivables

Trust

2025-D

3.91%,

02/15/2029

$

1,000

$

1,001

$

12,262

Automobile

Manufacturers

-

.83

%

Ford

Motor

Credit

Co

LLC

5.80%,

03/08/2029

875

894

6.13%,

03/08/2034

Hyundai

Capital

America

4.50%,

09/18/2030

(e) 550

550

5.25%,

01/08/2027

(e) 170

5.30%,

06/24/2029

(e) 125

6.50%,

01/16/2029

(e) 80

$

2,033

Automobile

Parts

&

Equipment

-

.06

%

Dana

Inc

5.38%,

11/15/2027

Phinia

Inc

6.75%,

04/15/2029

(e) 35

$

Banks

-

.27

%

AIB

Group

PLC

5.32%,

05/15/2031

(e),(f)

Secured

Overnight

Financing

Rate

+

1.65%

5.87%,

03/28/2035

(e),(f)

600

633

Secured

Overnight

Financing

Rate

+

1.91%

Bank

of

America

Corp

2.68%,

06/19/2041

(f) 680

501

Secured

Overnight

Financing

Rate

+

1.93%

2.69%,

04/22/2032

(f) 105

Secured

Overnight

Financing

Rate

+

1.32%

3.85%,

03/08/2037

(f) 50

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

2.00%

4.57%,

04/27/2033

(f) 360

Secured

Overnight

Financing

Rate

+

1.83%

Barclays

PLC

5.34%,

09/10/2035

(f) 215

Secured

Overnight

Financing

Rate

+

1.91%

7.63%,

03/15/2035

(f),(g),(h)

USD

Secured

Overnight

Financing

Rate

ICE

Swap

Rate

Year

+

3.69%

CaixaBank

SA

5.58%,

07/03/2036

(e),(f)

Secured

Overnight

Financing

Rate

+

1.79%

Citigroup

Inc

3.79%,

03/17/2033

(f) 485

Secured

Overnight

Financing

Rate

+

1.94%

5.17%,

09/11/2036

(f) 460

Secured

Overnight

Financing

Rate

+

1.49%

Cooperatieve

Rabobank

UA

4.99%,

05/27/2031

(e),(f)

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

0.92%

Danske

Bank

A/S

4.61%,

10/02/2030

(e),(f)

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.10%

5.02%,

03/04/2031

(e),(f)

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

0.93%

Deutsche

Bank

AG/New

York

NY

4.95%,

08/04/2031

(f) 855

864

Secured

Overnight

Financing

Rate

+

1.30%

5.71%,

02/08/2028

(f) 165

Secured

Overnight

Financing

Rate

+

1.59%

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Banks

(continued)

Goldman

Sachs

Group

Inc/The

4.94%,

10/21/2036

(f) $

$

Secured

Overnight

Financing

Rate

+

1.33%

5.02%,

10/23/2035

(f) 395

Secured

Overnight

Financing

Rate

+

1.42%

5.22%,

04/23/2031

(f) 560

578

Secured

Overnight

Financing

Rate

+

1.58%

5.54%,

01/28/2036

(f) 250

Secured

Overnight

Financing

Rate

+

1.38%

5.56%,

11/19/2045

(f) 155

Secured

Overnight

Financing

Rate

+

1.58%

5.73%,

01/28/2056

(f) 170

Secured

Overnight

Financing

Rate

+

1.70%

HSBC

Holdings

PLC

5.13%,

11/06/2036

(f) 295

Secured

Overnight

Financing

Rate

+

1.43%

5.24%,

05/13/2031

(f) 310

Secured

Overnight

Financing

Rate

+

1.57%

5.74%,

09/10/2036

(f) 400

Secured

Overnight

Financing

Rate

+

1.96%

Huntington

Bancshares

Inc/OH

5.71%,

02/02/2035

(f) 985

1,029

Secured

Overnight

Financing

Rate

+

1.87%

JPMorgan

Chase

&

Co

4.91%,

07/25/2033

(f) 705

718

Secured

Overnight

Financing

Rate

+

2.08%

4.95%,

10/22/2035

(f) 180

Secured

Overnight

Financing

Rate

+

1.34%

5.34%,

01/23/2035

(f) 290

Secured

Overnight

Financing

Rate

+

1.62%

5.58%,

07/23/2036

(f) 190

Secured

Overnight

Financing

Rate

+

1.64%

6.50%,

04/01/2030

(f),(g)

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

2.15%

KeyBank

NA/Cleveland

OH

5.00%,

01/26/2033

500

505

KeyCorp

5.12%,

04/04/2031

(a),(f)

Secured

Overnight

Financing

Rate

+

1.23%

6.40%,

03/06/2035

(f) 110

Secured

Overnight

Financing

Rate

+

2.42%

Morgan

Stanley

2.48%,

09/16/2036

(f) 225

Secured

Overnight

Financing

Rate

+

1.36%

4.89%,

10/22/2036

(f) 235

Secured

Overnight

Financing

Rate

+

1.31%

5.19%,

04/17/2031

(f) 480

Secured

Overnight

Financing

Rate

+

1.51%

5.32%,

07/19/2035

(f) 1,125

1,158

Secured

Overnight

Financing

Rate

+

1.56%

5.52%,

11/19/2055

(f) 120

Secured

Overnight

Financing

Rate

+

1.71%

5.66%,

04/17/2036

(f) 460

Secured

Overnight

Financing

Rate

+

1.76%

Morgan

Stanley

Private

Bank

NA

4.73%,

07/18/2031

(f) 250

Secured

Overnight

Financing

Rate

+

1.08%

NatWest

Group

PLC

5.12%,

05/23/2031

(f) 200

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.05%

PNC

Financial

Services

Group

Inc/The

4.90%,

05/13/2031

(f) 160

Secured

Overnight

Financing

Rate

+

1.33%

5.37%,

07/21/2036

(f) 355

Secured

Overnight

Financing

Rate

+

1.42%

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Banks

(continued)

PNC

Financial

Services

Group

Inc/The

(continued)

5.40%,

07/23/2035

(f) $

$

Secured

Overnight

Financing

Rate

+

1.60%

5.58%,

01/29/2036

(f) 230

Secured

Overnight

Financing

Rate

+

1.39%

5.68%,

01/22/2035

(f) 635

669

Secured

Overnight

Financing

Rate

+

1.90%

6.88%,

10/20/2034

(f) 205

Secured

Overnight

Financing

Rate

+

2.28%

Royal

Bank

of

Canada

6.50%,

11/24/2085

(f) 415

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

2.46%

Scotiabank

Peru

SAA

6.10%,

10/01/2035

(a),(e),(f)

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

2.31%

State

Street

Corp

4.78%,

10/23/2036

(f) 190

Secured

Overnight

Financing

Rate

+

1.22%

Truist

Financial

Corp

5.44%,

01/24/2030

(f) 80

Secured

Overnight

Financing

Rate

+

1.62%

7.16%,

10/30/2029

(f) 100

Secured

Overnight

Financing

Rate

+

2.45%

UBS

Group

AG

5.43%,

02/08/2030

(e),(f)

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.52%

7.00%,

02/10/2030

(e),(f),(g),(h)

USD

Secured

Overnight

Financing

Rate

ICE

Swap

Rate

Year

+

3.08%

US

Bancorp

5.08%,

05/15/2031

(f) 280

Secured

Overnight

Financing

Rate

+

1.30%

5.10%,

07/23/2030

(f) 145

Secured

Overnight

Financing

Rate

+

1.25%

5.42%,

02/12/2036

(a),(f)

Secured

Overnight

Financing

Rate

+

1.41%

5.68%,

01/23/2035

(f) 550

581

Secured

Overnight

Financing

Rate

+

1.86%

Westpac

Banking

Corp

4.11%,

07/24/2034

(f) 525

517

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

2.00%

Zions

Bancorp

NA

4.70%,

08/18/2028

(f) 345

Secured

Overnight

Financing

Rate

+

1.16%

$

20,352

Biotechnology

-

.21

%

Amgen

Inc

5.60%,

03/02/2043

CSL

Finance

PLC

4.75%,

04/27/2052

(e) 240

$

509

Building

Materials

-

.40

%

AmeriTex

HoldCo

Intermediate

LLC

7.63%,

08/15/2033

(e) 337

Cemex

SAB

de

CV

7.20%,

06/10/2030

(e),(f),(g)

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

3.52%

Smyrna

Ready

Mix

Concrete

LLC

6.00%,

11/01/2028

(e) 428

$

994

Chemicals

-

.77

%

CF

Industries

Inc

5.30%,

11/26/2035

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Chemicals

(continued)

Consolidated

Energy

Finance

SA

5.63%,

10/15/2028

(e) $

$

6.50%,

05/15/2026

(e) 150

International

Flavors

&

Fragrances

Inc

1.83%,

10/15/2027

(e) 210

3.47%,

12/01/2050

(e) 150

OCP

SA

6.75%,

05/02/2034

(e) 400

Olympus

Water

US

Holding

Corp

4.25%,

10/01/2028

(e) 275

Sociedad

Quimica

y

Minera

de

Chile

SA

5.50%,

09/10/2034

(e) 200

Vibrantz

Technologies

Inc

9.00%,

02/15/2030

(e) 158

$

1,885

Commercial

Mortgage

Backed

Securities

-

.32

%

ALA

Trust

2025-OANA

5.49%,

06/15/2040

(e) 300

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.74%

BBCMS

Mortgage

Trust

2024-C24

5.42%,

02/15/2057

2,000

2,086

BBCMS

Mortgage

Trust

2025-5C33

6.17%,

03/15/2058

(i) 500

525

BBCMS

Mortgage

Trust

2025-5C38

5.15%,

11/15/2058

750

772

Benchmark

2019-B15

Mortgage

Trust

3.56%,

12/15/2072

Benchmark

2021-B25

Mortgage

Trust

2.58%,

04/15/2054

BFLD

Commercial

Mortgage

Trust

2025-5MW

4.67%,

10/10/2042

(e),(i)

BPR

Trust

2024-PMDW

5.36%,

11/05/2041

(e),(i)

1,000

1,023

BRCK

Trust

2025-830B

0.28%,

12/10/2030

(e),(i),(j)

10,000

BSTN

Commercial

Mortgage

Trust

2025-1C

5.37%,

06/15/2044

(e),(i)

1,000

1,027

BX

2025-BIO3

Mortgage

Trust

6.14%,

02/10/2042

(e) 500

513

BX

Trust

2025-ARIA

5.03%,

12/13/2042

(e),(i)

1,000

1,009

BX

Trust

2025-VLT6

5.19%,

03/15/2042

(e) 1,000

999

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.44%

COMM

2025-167G

Mortgage

Trust

5.50%,

08/10/2040

(e) 350

DROP

Mortgage

Trust

2021-FILE

5.01%,

10/15/2043

(e) 500

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.26%

ELM

Trust

2024-ELM

5.80%,

06/10/2039

(e),(i)

850

854

GS

Mortgage

Securities

Trust

2011-GC5

0.00%,

08/10/2044

(e),(i),(j),(k)

500

—

GS

Mortgage

Securities

Trust

2015-GC34

3.51%,

10/10/2048

GS

Mortgage

Securities

Trust

2020-GSA2

2.01%,

12/12/2053

JPMBB

Commercial

Mortgage

Securities

Trust

2014-C24

4.56%,

11/15/2047

(i) 500

LBA

Trust

2024-7IND

5.19%,

10/15/2041

(e) 190

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.44%

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Commercial

Mortgage

Backed

Securities

(continued)

ORL

Trust

2024-GLKS

5.24%,

12/15/2039

(e) $

500

$

501

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.49%

SMRT

2022-MINI

4.75%,

01/15/2039

(e) 350

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.00%

SREIT

Trust

2021-MFP

4.60%,

11/15/2038

(e) 419

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

0.85%

Wells

Fargo

Commercial

Mortgage

Trust

2025-5C7

4.32%,

12/15/2058

$

13,093

Commercial

Services

-

.46

%

Block

Inc

6.00%,

08/15/2033

(e) 195

DP

World

Ltd/United

Arab

Emirates

6.85%,

07/02/2037

EquipmentShare.com

Inc

8.00%,

03/15/2033

(e) 224

8.63%,

05/15/2032

(e) 8

Garda

World

Security

Corp

6.00%,

06/01/2029

(e) 145

8.38%,

11/15/2032

(e) 236

Veritiv

Operating

Co

10.50%,

11/30/2030

(e) 120

Williams

Scotsman

Inc

4.63%,

08/15/2028

(e) 65

$

1,133

Computers

-

.89

%

Hewlett

Packard

Enterprise

Co

4.40%,

10/15/2030

4.55%,

10/15/2029

5.00%,

10/15/2034

680

674

5.60%,

10/15/2054

International

Business

Machines

Corp

5.70%,

02/10/2055

McAfee

Corp

7.38%,

02/15/2030

(e) 324

NCR

Atleos

Corp

9.50%,

04/01/2029

(e) 186

$

2,189

Consumer

Products

-

.03

%

Kronos

Acquisition

Holdings

Inc

8.25%,

06/30/2031

(e) 104

Credit

Card

Asset

Backed

Securities

-

.77

%

American

Express

Credit

Account

Master

Trust

4.87%,

05/15/2028

5.24%,

04/15/2031

955

995

Citibank

Credit

Card

Issuance

Trust

3.96%,

10/13/2030

500

502

WF

Card

Issuance

Trust

4.34%,

05/15/2030

$

1,902

Diversified

Financial

Services

-

.02

%

AerCap

Ireland

Capital

DAC

/

AerCap

Global

Aviation

Trust

3.00%,

10/29/2028

6.95%,

03/10/2055

(f) 345

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

2.72%

Affiliated

Managers

Group

Inc

5.50%,

02/15/2036

Aircastle

Ltd

5.95%,

02/15/2029

(e) 60

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Diversified

Financial

Services

(continued)

Aircastle

Ltd

/

Aircastle

Ireland

DAC

5.00%,

09/15/2030

(e) $

580

$

585

5.75%,

10/01/2031

(e) 355

Atlas

Warehouse

Lending

Co

LP

4.95%,

11/15/2030

(e) 330

Charles

Schwab

Corp/The

4.91%,

11/14/2036

(f) 420

Secured

Overnight

Financing

Rate

+

1.23%

5.85%,

05/19/2034

(f) 385

Secured

Overnight

Financing

Rate

+

2.50%

Citadel

Securities

Global

Holdings

LLC

5.50%,

06/18/2030

(e) 500

513

6.20%,

06/18/2035

(e) 500

526

Credit

Acceptance

Corp

6.63%,

03/15/2030

(e) 255

9.25%,

12/15/2028

(e) 70

Equitable

America

Global

Funding

4.95%,

06/09/2030

(e) 90

Freedom

Mortgage

Holdings

LLC

7.88%,

04/01/2033

(e) 25

9.13%,

05/15/2031

(e) 255

Global

Aircraft

Leasing

Co

Ltd

8.75%,

09/01/2027

(e) 359

ILFC

E-Capital

Trust

II

6.60%,

12/21/2065

(e) 100

CME

Term

Secured

Overnight

Financing

Rate

Month

+

0.00%

Jane

Street

Group

/

JSG

Finance

Inc

6.13%,

11/01/2032

(e) 444

6.75%,

05/01/2033

(e) 669

698

OneMain

Finance

Corp

3.50%,

01/15/2027

4.00%,

09/15/2030

6.63%,

01/15/2028

7.13%,

11/15/2031

7.50%,

05/15/2031

Rfna

LP

7.88%,

02/15/2030

(e) 60

Rocket

Cos

Inc

6.13%,

08/01/2030

(e) 95

SLM

Corp

3.13%,

11/02/2026

TrueNoord

Capital

DAC

8.75%,

03/01/2030

(e) 187

$

7,427

Electric

-

.17

%

Alliant

Energy

Finance

LLC

5.40%,

06/06/2027

(e) 535

542

5.95%,

03/30/2029

(e) 95

Berkshire

Hathaway

Energy

Co

4.60%,

05/01/2053

Black

Hills

Corp

4.55%,

01/31/2031

California

Buyer

Ltd

/

Atlantica

Sustainable

Infrastructure

PLC

6.38%,

02/15/2032

(e) 235

Clearway

Energy

Operating

LLC

4.75%,

03/15/2028

(e) 115

CMS

Energy

Corp

6.50%,

06/01/2055

(f) 425

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.96%

Commonwealth

Edison

Co

4.00%,

03/01/2049

DTE

Energy

Co

5.20%,

04/01/2030

Duke

Energy

Carolinas

LLC

3.75%,

06/01/2045

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Electric

(continued)

Duke

Energy

Florida

LLC

6.20%,

11/15/2053

$

$

Evergy

Missouri

West

Inc

5.25%,

12/15/2035

(e) 170

Exelon

Corp

5.60%,

03/15/2053

Indianapolis

Power

&

Light

Co

5.70%,

04/01/2054

(e) 145

Interstate

Power

and

Light

Co

5.60%,

06/29/2035

590

614

Lightning

Power

LLC

7.25%,

08/15/2032

(e) 282

Louisville

Gas

and

Electric

Co

5.85%,

08/15/2055

MidAmerican

Energy

Co

3.15%,

04/15/2050

NextEra

Energy

Capital

Holdings

Inc

5.45%,

03/15/2035

6.38%,

08/15/2055

(f) 250

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

2.05%

6.70%,

09/01/2054

(f) 335

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

2.36%

NRG

Energy

Inc

5.41%,

10/15/2035

(e) 100

5.75%,

01/15/2034

(e) 117

6.00%,

01/15/2036

(e) 201

Public

Service

Co

of

Colorado

5.25%,

04/01/2053

Puget

Sound

Energy

Inc

5.60%,

09/15/2055

Saavi

Energia

Sarl

8.88%,

02/10/2035

(e) 200

Southern

Co/The

5.70%,

03/15/2034

Southern

Power

Co

4.90%,

10/01/2035

Trans-Allegheny

Interstate

Line

Co

5.00%,

01/15/2031

(e) 154

Vistra

Corp

7.00%,

12/15/2026

(e),(f),(g)

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

5.74%

Vistra

Operations

Co

LLC

4.38%,

05/01/2029

(e) 65

VoltaGrid

LLC

7.38%,

11/01/2030

(e) 265

WEC

Energy

Group

Inc

5.63%,

05/15/2056

(f) 265

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.91%

Xcel

Energy

Inc

5.45%,

08/15/2033

730

753

$

7,793

Electrical

Components

&

Equipment

-

.02

%

WESCO

Distribution

Inc

7.25%,

06/15/2028

(e) 43

Engineering

&

Construction

-

.08

%

ATP

Tower

Holdings

/

Andean

Telecom

Partners

Chile

SpA

/

Andean

Tower

Partners

Colombia

SAS

7.88%,

02/03/2030

(a),(e)

Entertainment

-

.40

%

Caesars

Entertainment

Inc

4.63%,

10/15/2029

(e) 215

6.50%,

02/15/2032

(e) 245

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Entertainment

(continued)

Cinemark

USA

Inc

5.25%,

07/15/2028

(e) $

$

7.00%,

08/01/2032

(e) 95

Warnermedia

Holdings

Inc

5.05%,

03/15/2042

Wynn

Resorts

Finance

LLC

/

Wynn

Resorts

Capital

Corp

7.13%,

02/15/2031

(e) 30

$

988

Environmental

Control

-

.08

%

Madison

IAQ

LLC

4.13%,

06/30/2028

(e) 90

Waste

Connections

Inc

5.25%,

09/01/2035

$

Food

-

.29

%

Albertsons

Cos

Inc

/

Safeway

Inc

/

New

Albertsons

LP

/

Albertsons

LLC

4.63%,

01/15/2027

(e) 85

B&G

Foods

Inc

5.25%,

09/15/2027

(a) 20

8.00%,

09/15/2028

(e) 266

Chobani

Holdco

II

LLC

8.75%,

PIK

9.50%;

10/01/2029

(e),(i),(l)

Chobani

LLC

/

Chobani

Finance

Corp

Inc

7.63%,

07/01/2029

(e) 145

Fiesta

Purchaser

Inc

7.88%,

03/01/2031

(e) 189

JBS

USA

Holding

Lux

Sarl

/

JBS

USA

Foods

Group

Holdings

Inc

/

JBS

USA

Food

Co

5.50%,

01/15/2036

(e) 120

6.25%,

03/01/2056

(e) 235

6.38%,

04/15/2066

(e) 160

JBS

USA

Holding

Lux

Sarl/

JBS

USA

Food

Co/

JBS

Lux

Co

Sarl

4.38%,

02/02/2052

526

JBS

USA

LUX

Sarl

/

JBS

USA

Food

Co

/

JBS

USA

Foods

Group

6.38%,

02/25/2055

(e) 125

Mars

Inc

5.20%,

03/01/2035

(e) 815

838

5.70%,

05/01/2055

(e) 398

$

3,175

Forest

Products

&

Paper

-

.02

%

Mercer

International

Inc

5.13%,

02/01/2029

(a) 40

12.88%,

10/01/2028

(e) 45

$

Gas

-

.36

%

Boston

Gas

Co

5.84%,

01/10/2035

(e) 100

NiSource

Inc

6.95%,

11/30/2054

(f) 310

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

2.45%

Southern

California

Gas

Co

5.05%,

09/01/2034

6.00%,

06/15/2055

$

879

Healthcare

-

Services

-

.64

%

Acadia

Healthcare

Co

Inc

5.00%,

04/15/2029

(e) 145

7.38%,

03/15/2033

(a),(e)

Centene

Corp

2.63%,

08/01/2031

4.25%,

12/15/2027

Concentra

Health

Services

Inc

6.88%,

07/15/2032

(e) 148

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Healthcare

-

Services

(continued)

Global

Medical

Response

Inc

7.38%,

10/01/2032

(e) $

$

HCA

Inc

5.45%,

04/01/2031

LifePoint

Health

Inc

8.38%,

02/15/2032

(e) 279

11.00%,

10/15/2030

(e) 90

Tenet

Healthcare

Corp

6.13%,

06/15/2030

UnitedHealth

Group

Inc

4.75%,

05/15/2052

5.75%,

07/15/2064

$

1,585

Home

Builders

-

.16

%

Adams

Homes

Inc

9.25%,

10/15/2028

(e) 184

K

Hovnanian

Enterprises

Inc

8.38%,

10/01/2033

(e) 193

$

Home

Equity

Asset

Backed

Securities

-

.02

%

Saxon

Asset

Securities

Trust

2004-1

1.43%,

03/25/2035

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.81%

Insurance

-

.71

%

American

International

Group

Inc

5.45%,

05/07/2035

Aon

North

America

Inc

5.75%,

03/01/2054

Arthur

J

Gallagher

&

Co

5.15%,

02/15/2035

5.55%,

02/15/2055

Brown

&

Brown

Inc

4.70%,

06/23/2028

Corebridge

Financial

Inc

5.75%,

01/15/2034

Markel

Group

Inc

6.00%,

05/16/2054

Marsh

&

McLennan

Cos

Inc

6.25%,

11/01/2052

MetLife

Inc

5.00%,

07/15/2052

5.30%,

12/15/2034

Northwestern

Mutual

Life

Insurance

Co/The

6.17%,

05/29/2055

(e) 140

Protective

Life

Corp

4.70%,

01/15/2031

(e) 180

Teachers

Insurance

&

Annuity

Association

of

America

4.27%,

05/15/2047

(e) 85

Willis

North

America

Inc

4.55%,

03/15/2031

$

1,743

Internet

-

.75

%

Beignet

Investor

LLC

6.58%,

05/30/2049

(e) 555

586

Cogent

Communications

Group

LLC

/

Cogent

Finance

Inc

7.00%,

06/15/2027

(e) 15

MercadoLibre

Inc

4.90%,

01/15/2033

Meta

Platforms

Inc

4.45%,

08/15/2052

4.60%,

11/15/2032

4.88%,

11/15/2035

5.63%,

11/15/2055

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Internet

(continued)

ZipRecruiter

Inc

5.00%,

01/15/2030

(e) $

$

$

1,856

Investment

Companies

-

.25

%

HA

Sustainable

Infrastructure

Capital

Inc

8.00%,

06/01/2056

(f) 230

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

4.30%

HAT

Holdings

I

LLC

/

HAT

Holdings

II

LLC

3.38%,

06/15/2026

(e) 7

Icahn

Enterprises

LP

/

Icahn

Enterprises

Finance

Corp

4.38%,

02/01/2029

5.25%,

05/15/2027

10.00%,

11/15/2029

(e) 102

$

622

Iron

&

Steel

-

.12

%

Vale

Overseas

Ltd

6.00%,

02/25/2056

(e),(f)

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

2.43%

Leisure

Products

&

Services

-

.03

%

NCL

Finance

Ltd

6.13%,

03/15/2028

(e) 80

Lodging

-

.08

%

Wynn

Macau

Ltd

5.63%,

08/26/2028

(e) 200

Machinery

-

Diversified

-

.06

%

Maxim

Crane

Works

Holdings

Capital

LLC

11.50%,

09/01/2028

(e) 140

Media

-

.15

%

AMC

Networks

Inc

10.25%,

01/15/2029

(e) 58

CCO

Holdings

LLC

/

CCO

Holdings

Capital

Corp

4.50%,

08/15/2030

(e) 195

4.50%,

06/01/2033

(e) 16

5.38%,

06/01/2029

(e) 70

Charter

Communications

Operating

LLC

/

Charter

Communications

Operating

Capital

3.90%,

06/01/2052

525

5.85%,

12/01/2035

555

554

6.55%,

06/01/2034

6.70%,

12/01/2055

Comcast

Corp

2.94%,

11/01/2056

Directv

Financing

LLC

8.88%,

02/01/2030

(e) 110

8.88%,

02/01/2030

(e) 84

Directv

Financing

LLC

/

Directv

Financing

Co-

Obligor

Inc

10.00%,

02/15/2031

(e) 5

Discovery

Communications

LLC

4.13%,

05/15/2029

DISH

DBS

Corp

5.25%,

12/01/2026

(e) 16

DISH

Network

Corp

11.75%,

11/15/2027

(e) 195

iHeartCommunications

Inc

4.75%,

01/15/2028

(e) 101

7.75%,

08/15/2030

(e) 56

Paramount

Global

4.20%,

05/19/2032

Sinclair

Television

Group

Inc

8.13%,

02/15/2033

(e) 243

$

2,835

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Metal

Fabrication

&

Hardware

-

.08

%

TMS

International

Corp/DE

6.25%,

04/15/2029

(e) $

$

Mining

-

.35

%

First

Quantum

Minerals

Ltd

8.00%,

03/01/2033

(e) 200

Glencore

Funding

LLC

5.19%,

04/01/2030

(e) 210

5.37%,

04/04/2029

(e) 175

New

Gold

Inc

6.88%,

04/01/2032

(e) 30

Taseko

Mines

Ltd

8.25%,

05/01/2030

(e) 210

$

865

Mortgage

Backed

Securities

-

.25

%

Fannie

Mae

REMICS

2.01%,

12/25/2049

(j) 1,923

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

5.89%

2.06%,

08/25/2049

(j) 1,820

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

5.94%

2.06%,

06/25/2050

(j) 1,029

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

5.94%

2.11%,

02/25/2043

(j) 96

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

5.99%

2.11%,

08/25/2043

(j) 537

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

5.99%

2.11%,

12/25/2044

(j) 2,190

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

5.99%

2.16%,

12/25/2042

(j) 1,229

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

6.04%

2.16%,

01/25/2048

(j) 466

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

6.04%

2.21%,

03/25/2048

(j) 601

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

6.09%

2.21%,

06/25/2048

(j) 660

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

6.09%

3.00%,

04/25/2027

(j) 9

—

3.00%,

09/25/2050

(j) 733

3.50%,

11/25/2027

(j) 7

—

Freddie

Mac

REMICS

1.95%,

10/15/2046

(j) 827

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

5.94%

2.16%,

06/25/2050

(j) 668

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

6.04%

3.00%,

05/15/2027

(j) 6

—

3.00%,

10/15/2027

(j) 7

—

4.55%,

05/15/2049

675

663

1.00 x

Day

Average

Secured

Overnight

Financing

Rate

+

0.56%

Ginnie

Mae

2.20%,

12/16/2043

(j) 695

(1.00)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

5.94%

2.20%,

03/20/2050

(j) 1,349

(1.00)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

5.94%

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Mortgage

Backed

Securities

(continued)

Ginnie

Mae

(continued)

2.25%,

06/20/2046

(j) $

$

(1.00)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

5.99%

2.25%,

11/20/2046

(j) 623

(1.00)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

5.99%

2.29%,

12/20/2043

(j) 118

(1.00)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

6.03%

2.33%,

09/20/2050

(j) 604

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

6.25%

2.35%,

10/20/2045

(j) 279

(1.00)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

6.09%

2.35%,

08/20/2047

(j) 668

(1.00)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

6.09%

2.35%,

11/20/2047

(j) 202

(1.00)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

6.09%

2.40%,

06/20/2045

(j) 545

(1.00)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

6.14%

2.45%,

08/20/2050

(j) 743

(1.00)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

6.19%

2.45%,

11/20/2050

(j) 527

(1.00)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

6.19%

2.45%,

06/20/2051

(j) 1,469

(1.00)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

6.19%

2.45%,

08/20/2051

(j) 512

(1.00)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

6.19%

2.50%,

12/20/2050

(j) 911

2.86%,

04/20/2041

(j) 422

(1.10)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

6.97%

3.00%,

07/20/2050

(j) 193

3.00%,

11/20/2050

(j) 454

3.00%,

11/20/2050

(j) 679

3.00%,

11/20/2050

(j) 866

3.50%,

10/20/2049

(j) 310

JP

Morgan

Mortgage

Trust

2024-1

6.00%,

06/25/2054

(e),(i)

JP

Morgan

Mortgage

Trust

2025-1

6.00%,

06/25/2055

(e),(i)

JP

Morgan

Mortgage

Trust

Series

2024-4

6.00%,

10/25/2054

(e),(i)

Sequoia

Mortgage

Trust

2024-2

6.00%,

03/25/2054

(e),(i)

Sequoia

Mortgage

Trust

2024-3

6.00%,

04/25/2054

(e),(i)

$

5,531

Oil

&

Gas

-

.92

%

Aethon

United

BR

LP

/

Aethon

United

Finance

Corp

7.50%,

10/01/2029

(e) 353

Chord

Energy

Corp

6.00%,

10/01/2030

(e) 130

ConocoPhillips

Co

5.50%,

01/15/2055

Diamondback

Energy

Inc

5.75%,

04/18/2054

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Oil

&

Gas

(continued)

Ecopetrol

SA

8.38%,

01/19/2036

$

$

8.88%,

01/13/2033

Matador

Resources

Co

6.25%,

04/15/2033

(e) 388

Occidental

Petroleum

Corp

5.20%,

08/01/2029

Permian

Resources

Operating

LLC

8.00%,

04/15/2027

(e) 75

Sunoco

LP

5.88%,

03/15/2034

(e) 252

$

2,263

Oil

&

Gas

Services

-

.06

%

Archrock

Partners

LP

/

Archrock

Partners

Finance

Corp

6.25%,

04/01/2028

(e) 110

Enerflex

Inc

6.88%,

01/15/2031

(e) 30

$

Other

Asset

Backed

Securities

-

.79

%

Bluepeak

ABS

Issuer

LLC

5.86%,

12/20/2055

(e) 225

Consolidated

Communications

LLC/Fidium

Fiber

Finance

Holdco

LLC

5.52%,

12/20/2055

(e) 1,000

1,005

Hilton

Grand

Vacations

Trust

2024-3

4.98%,

08/27/2040

(e) 214

Hotwire

Funding

LLC

2.31%,

11/20/2051

(e) 600

588

MetroNet

Infrastructure

Issuer

LLC

5.16%,

12/20/2055

(e) 750

751

Summit

Issuer

LLC

5.21%,

11/20/2055

(e) 800

802

Switch

ABS

Issuer

LLC

5.12%,

10/25/2055

(e) 750

749

Verizon

Master

Trust

4.35%,

08/20/2032

(e) 525

529

Verizon

Master

Trust

Series

2025-2

4.94%,

01/20/2033

(e) 215

Zayo

Issuer

LLC

5.57%,

10/20/2055

(e) 800

798

5.65%,

03/20/2055

(e) 150

5.72%,

10/20/2055

(e) 150

5.95%,

06/20/2055

(e) 650

667

$

6,853

Packaging

&

Containers

-

.66

%

Clydesdale

Acquisition

Holdings

Inc

6.75%,

04/15/2032

(e) 100

8.75%,

04/15/2030

(e) 60

LABL

Inc

5.88%,

11/01/2028

(e) 95

9.50%,

11/01/2028

(e) 280

Mauser

Packaging

Solutions

Holding

Co

7.88%,

04/15/2030

(e) 248

9.25%,

04/15/2030

(e) 149

Packaging

Corp

of

America

5.20%,

08/15/2035

Smurfit

Kappa

Treasury

ULC

5.20%,

01/15/2030

$

1,634

Pharmaceuticals

-

.05

%

1261229

BC

Ltd

10.00%,

04/15/2032

(e) 200

AbbVie

Inc

4.25%,

11/21/2049

5.50%,

03/15/2064

AdaptHealth

LLC

6.13%,

08/01/2028

(e) 105

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Pharmaceuticals

(continued)

Bayer

US

Finance

LLC

6.25%,

01/21/2029

(e) $

$

CVS

Health

Corp

5.45%,

09/15/2035

Eli

Lilly

&

Co

5.50%,

02/12/2055

5.65%,

10/15/2065

Endo

Finance

Holdings

Inc

8.50%,

04/15/2031

(e) 272

Jazz

Securities

DAC

4.38%,

01/15/2029

(e) 295

Zoetis

Inc

5.00%,

08/17/2035

555

561

$

2,593

Pipelines

-

.68

%

Cheniere

Energy

Inc

5.65%,

04/15/2034

Cheniere

Energy

Partners

LP

5.55%,

10/30/2035

(e) 150

DT

Midstream

Inc

4.13%,

06/15/2029

(e) 815

804

Energy

Transfer

LP

3.75%,

05/15/2030

505

5.15%,

03/15/2045

5.25%,

07/01/2029

6.50%,

02/15/2056

(f) 399

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

2.68%

Harvest

Midstream

I

LP

7.50%,

09/01/2028

(e) 35

Kinder

Morgan

Inc

5.40%,

02/01/2034

NGL

Energy

Operating

LLC

/

NGL

Energy

Finance

Corp

8.13%,

02/15/2029

(e) 65

ONEOK

Inc

4.40%,

10/15/2029

4.75%,

10/15/2031

5.70%,

11/01/2054

505

Transcontinental

Gas

Pipe

Line

Co

LLC

5.75%,

03/15/2056

(e) 70

Venture

Global

LNG

Inc

8.38%,

06/01/2031

(e) 25

9.00%,

09/30/2029

(e),(f),(g)

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

5.44%

9.50%,

02/01/2029

(e) 278

$

4,126

REITs

-

.91

%

American

Homes

Rent

LP

3.38%,

07/15/2051

4.25%,

02/15/2028

4.95%,

06/15/2030

5.50%,

07/15/2034

Arbor

Realty

SR

Inc

7.88%,

07/15/2030

(e) 317

8.50%,

12/15/2028

(e) 70

CFE

Fibra

E

5.88%,

09/23/2040

(e) 198

EF

Holdco

/

EF

Cayman

Hold

/

Ellington

Fin

REIT

Cayman/TRS

/

EF

Cayman

Non-MTM

7.38%,

09/30/2030

(e) 300

Ladder

Capital

Finance

Holdings

LLLP

/

Ladder

Capital

Finance

Corp

4.75%,

06/15/2029

(e) 129

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

REITs

(continued)

Park

Intermediate

Holdings

LLC

/

PK

Domestic

Property

LLC

/

PK

Finance

Co-Issuer

4.88%,

05/15/2029

(e) $

$

7.00%,

02/01/2030

(e) 65

Uniti

Group

LP

/

Uniti

Fiber

Holdings

Inc

/

CSL

Capital

LLC

6.00%,

01/15/2030

(e) 186

XHR

LP

4.88%,

06/01/2029

(e) 110

6.63%,

05/15/2030

(e) 5

$

2,230

Retail

-

.66

%

Bath

&

Body

Works

Inc

5.25%,

02/01/2028

6.63%,

10/01/2030

(e) 34

6.75%,

07/01/2036

6.95%,

03/01/2033

Carvana

Co

9.00%,

06/01/2030

(e),(i)

Fertitta

Entertainment

LLC

/

Fertitta

Entertainment

Finance

Co

Inc

4.63%,

01/15/2029

(e) 294

Park

River

Holdings

Inc

8.00%,

03/15/2031

(e) 175

Specialty

Building

Products

Holdings

LLC

/

SBP

Finance

Corp

7.75%,

10/15/2029

(e) 258

Victra

Holdings

LLC

/

Victra

Finance

Corp

8.75%,

09/15/2029

(e) 214

$

1,611

Semiconductors

-

.77

%

Broadcom

Inc

3.14%,

11/15/2035

(e) 34

3.42%,

04/15/2033

1,397

1,293

4.35%,

02/15/2030

4.55%,

02/15/2032

5.05%,

07/12/2029

5.15%,

11/15/2031

5.20%,

07/15/2035

Intel

Corp

4.75%,

03/25/2050

(a) 270

Kioxia

Holdings

Corp

6.63%,

07/24/2033

(e) 400

Marvell

Technology

Inc

2.95%,

04/15/2031

4.75%,

07/15/2030

5.45%,

07/15/2035

5.95%,

09/15/2033

Micron

Technology

Inc

5.30%,

01/15/2031

5.80%,

01/15/2035

619

652

$

4,361

Shipbuilding

-

.04

%

Huntington

Ingalls

Industries

Inc

5.75%,

01/15/2035

Software

-

.69

%

Cloud

Software

Group

Inc

9.00%,

09/30/2029

(e) 60

Oracle

Corp

3.95%,

03/25/2051

4.00%,

07/15/2046

4.80%,

09/26/2032

5.20%,

09/26/2035

5.55%,

02/06/2053

5.95%,

09/26/2055

Synopsys

Inc

5.70%,

04/01/2055

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Software

(continued)

VMware

LLC

1.80%,

08/15/2028

$

$

$

1,702

Sovereign

-

.45

%

Colombia

Government

International

Bond

8.50%,

04/25/2035

Istanbul

Metropolitan

Municipality

10.50%,

12/06/2028

(e) 200

Mexico

Government

International

Bond

5.38%,

03/22/2033

Republic

of

South

Africa

Government

International

Bond

7.25%,

12/11/2055

(e) 200

Romanian

Government

International

Bond

6.63%,

05/16/2036

(e) 250

$

1,097

Telecommunications

-

.23

%

Altice

France

SA

9.50%,

11/01/2029

(e) 255

AT&T

Inc

3.50%,

09/15/2053

3.55%,

09/15/2055

CommScope

LLC

7.13%,

07/01/2028

(e) 84

Digicel

International

Finance

Ltd

/

Difl

US

LLC

8.63%,

08/01/2032

(e) 400

EchoStar

Corp

10.75%,

11/30/2029

Level

Financing

Inc

8.50%,

01/15/2036

(e) 120

T-Mobile

USA

Inc

2.40%,

03/15/2029

2.55%,

02/15/2031

2.88%,

02/15/2031

3.40%,

10/15/2052

4.63%,

01/15/2033

4.95%,

11/15/2035

5.13%,

05/15/2032

5.88%,

11/15/2055

Uniti

Group

LP

/

Uniti

Group

Finance

2019

Inc

/

CSL

Capital

LLC

8.63%,

06/15/2032

(e) 35

Verizon

Communications

Inc

2.55%,

03/21/2031

2.88%,

11/20/2050

5.00%,

01/15/2036

5.88%,

11/30/2055

Viasat

Inc

7.50%,

05/30/2031

(e) 310

Viavi

Solutions

Inc

3.75%,

10/01/2029

(e) 60

Windstream

Services

LLC

7.50%,

10/15/2033

(e) 25

Zayo

Group

Holdings

Inc

9.25%,

PIK

0.00%;

03/09/2030

(e),(i),(l)

$

5,496

Transportation

-

.24

%

Burlington

Northern

Santa

Fe

LLC

4.45%,

01/15/2053

5.55%,

03/15/2056

Eletson

Holdings

Inc

-

Escrow

0.00%,

01/15/2022

(k),(m)

—

Norfolk

Southern

Corp

5.35%,

08/01/2054

RXO

Inc

7.50%,

11/15/2027

(e) 60

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Transportation

(continued)

Watco

Cos

LLC

/

Watco

Finance

Corp

7.13%,

08/01/2032

(e) $

$

$

591

Water

-

.09

%

Aegea

Finance

Sarl

9.00%,

01/20/2031

(e) 200

TOTAL

BONDS

$

136,254

SENIOR

FLOATING

RATE

INTERESTS

-

.16

%

Principal

Amount

(000's)

Value

(000's)

Aerospace

&

Defense

-

.08

%

TransDigm

Inc

;

Term

Loan

J

6.22%,

02/28/2031

CME

Term

Secured

Overnight

Financing

Rate

Month

+

2.50%

Airlines

-

.11

%

AAdvantage

Loyalty

IP

Ltd

;

Term

Loan

B

6.13%,

04/20/2028

CME

Term

Secured

Overnight

Financing

Rate

Month

+

2.25%

United

Airlines

Inc

;

Term

Loan

B

5.73%,

02/22/2031

CME

Term

Secured

Overnight

Financing

Rate

Month

+

2.00%

WestJet

Loyalty

LP

;

Term

Loan

B

6.92%,

02/14/2031

CME

Term

Secured

Overnight

Financing

Rate

Month

+

3.25%

$

Chemicals

-

.12

%

Advancion

Holdings

LLC

;

Term

Loan

11.57%,

11/24/2028

CME

Term

Secured

Overnight

Financing

Rate

Month

+

7.75%

Element

Solutions

Inc

;

Term

Loan

B3

5.47%,

12/18/2030

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.75%

$

Commercial

Services

-

.30

%

Aggreko

Holdings

Inc

;

Term

Loan

B

6.87%,

05/21/2031

CME

Term

Secured

Overnight

Financing

Rate

Month

+

3.00%

Garda

World

Security

Corp

;

Term

Loan

B

6.75%,

02/01/2029

CME

Term

Secured

Overnight

Financing

Rate

Month

+

3.00%

Shift4

Payments

LLC

;

Term

Loan

B

6.17%,

07/02/2032

CME

Term

Secured

Overnight

Financing

Rate

Month

+

2.75%

Veritiv

Operating

Co

;

Term

Loan

B

7.67%,

11/30/2030

CME

Term

Secured

Overnight

Financing

Rate

Month

+

4.00%

$

744

Computers

-

.07

%

McAfee

Corp

;

Term

Loan

B1

6.72%,

03/01/2029

CME

Term

Secured

Overnight

Financing

Rate

Month

+

3.00%

Consumer

Products

-

.07

%

Kronos

Acquisition

Holdings

Inc

;

Term

Loan

B

7.67%,

06/27/2031

CME

Term

Secured

Overnight

Financing

Rate

Month

+

4.00%

SENIOR

FLOATING

RATE

INTERESTS

(continued)

Principal

Amount

(000's)

Value

(000's)

Diversified

Financial

Services

-

.09

%

Jane

Street

Group

LLC

;

Term

Loan

B

5.83%,

12/15/2031

$

$

CME

Term

Secured

Overnight

Financing

Rate

Month

+

2.00%

Food

-

.09

%

Fiesta

Purchaser

Inc

;

Term

Loan

B

6.47%,

02/12/2031

CME

Term

Secured

Overnight

Financing

Rate

Month

+

2.75%

Insurance

-

.21

%

Asurion

LLC

;

Term

Loan

B4

10.12%,

01/20/2029

515

505

CME

Term

Secured

Overnight

Financing

Rate

Month

+

5.25%

Lodging

-

.11

%

Fertitta

Entertainment

LLC/NV

;

Term

Loan

B

6.97%,

01/27/2029

CME

Term

Secured

Overnight

Financing

Rate

Month

+

3.25%

Machinery

-

Diversified

-

.00

%

TK

Elevator

US

Newco

Inc

;

Term

Loan

B

7.20%,

04/30/2030

CME

Term

Secured

Overnight

Financing

Rate

Month

+

3.00%

Media

-

.19

%

Directv

Financing

LLC

;

Tern

Loan

Extended

9.35%,

08/02/2029

CME

Term

Secured

Overnight

Financing

Rate

Month

+

5.25%

Directv

Financing

LLC

;

Term

Loan

B

9.34%,

02/15/2031

CME

Term

Secured

Overnight

Financing

Rate

Month

+

5.50%

iHeartCommunications

Inc

;

Term

Loan

9.61%,

05/01/2029

CME

Term

Secured

Overnight

Financing

Rate

Month

+

5.78%

$

Mining

-

.06

%

Arsenal

AIC

Parent

LLC

;

Term

Loan

B

6.47%,

08/18/2030

CME

Term

Secured

Overnight

Financing

Rate

Month

+

2.75%

Oil

&

Gas

Services

-

.05

%

Deep

Blue

Operating

I

LLC

;

Term

Loan

B

6.59%,

10/01/2032

CME

Term

Secured

Overnight

Financing

Rate

Month

+

2.75%

Packaging

&

Containers

-

.18

%

Clydesdale

Acquisition

Holdings

Inc

;

Term

Loan

B

6.97%,

03/26/2032

CME

Term

Secured

Overnight

Financing

Rate

Month

+

3.25%

LABL

Inc

;

Term

Loan

B

8.94%,

10/27/2028

CME

Term

Secured

Overnight

Financing

Rate

Month

+

5.00%

Mauser

Packaging

Solutions

Holding

Co

;

Term

Loan

B

7.23%,

04/15/2030

CME

Term

Secured

Overnight

Financing

Rate

Month

+

3.50%

$

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2025

See

accompanying

notes.

SENIOR

FLOATING

RATE

INTERESTS

(continued)

Principal

Amount

(000's)

Value

(000's)

Pharmaceuticals

-

.19

%

1261229

BC

Ltd

;

Term

Loan

B

9.97%,

10/08/2030

$

$

CME

Term

Secured

Overnight

Financing

Rate

Month

+

6.25%

Endo

Finance

Holdings

Inc

;

Term

Loan

B

7.47%,

04/23/2031

CME

Term

Secured

Overnight

Financing

Rate

Month

+

4.00%

Jazz

Financing

Lux

Sarl

;

Term

Loan

B2

7.02%,

05/05/2028

CME

Term

Secured

Overnight

Financing

Rate

Month

+

2.25%

$

Pipelines

-

.04

%

NGL

Energy

Operating

LLC

;

Term

Loan

B

7.22%,

02/03/2031

CME

Term

Secured

Overnight

Financing

Rate

Month

+

3.75%

Retail

-

.03

%

IRB

Holding

Corp

;

Term

Loan

B

6.22%,

12/15/2030

CME

Term

Secured

Overnight

Financing

Rate

Month

+

2.50%

Telecommunications

-

.17

%

CommScope

LLC

;

Term

Loan

9.51%,

12/17/2029

CME

Term

Secured

Overnight

Financing

Rate

Month

+

4.75%

Zayo

Group

Holdings

Inc

;

PIK

Term

Loan

7.03%,

PIK

0.50%;

03/11/2030

(l) 272

CME

Term

Secured

Overnight

Financing

Rate

Month

+

3.50%

$

TOTAL

SENIOR

FLOATING

RATE

INTERESTS

$

5,308

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

-

.90

%

Principal

Amount

(000's)

Value

(000's)

Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

-

.61

%

3.00%,

11/01/2042

$

$

3.00%,

11/01/2042

3.00%,

12/01/2046

3.50%,

10/01/2041

3.50%,

04/01/2042

3.50%,

10/01/2045

3.50%,

03/01/2048

4.00%,

02/01/2045

4.00%,

02/01/2046

4.00%,

02/01/2046

4.00%,

06/01/2046

4.00%,

04/01/2047

4.00%,

11/01/2047

4.50%,

10/01/2041

4.50%,

12/01/2043

5.00%,

06/01/2031

5.00%,

10/01/2035

5.00%,

06/01/2041

6.00%,

06/01/2032

6.00%,

10/01/2032

6.00%,

01/01/2038

6.50%,

05/01/2029

6.50%,

04/01/2031

6.50%,

02/01/2032

6.50%,

05/01/2032

7.00%,

12/01/2029

7.00%,

06/01/2030

7.00%,

12/01/2031

7.50%,

03/01/2031

8.00%,

09/01/2030

$

1,517

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

Federal

National

Mortgage

Association

(FNMA)/Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

Uniform

Mortgage-Backed

Security

-

.65

%

2.00%,

01/01/2051

$

842

$

703

2.00%,

02/01/2051

1,387

1,131

2.00%,

02/01/2051

3,009

2,496

2.00%,

05/01/2051

1,467

1,196

2.00%,

11/01/2051

960

789

2.00%,

12/01/2051

1,478

1,214

2.00%,

12/01/2051

2.00%,

05/01/2052

2.50%,

11/01/2050

2.50%,

02/01/2051

1,135

984

2.50%,

07/01/2051

848

731

2.50%,

11/01/2051

512

2.50%,

12/01/2051

1,005

867

2.50%,

01/01/2052

702

599

2.50%,

04/01/2052

1,237

1,062

2.50%,

10/01/2053

3.00%,

03/01/2034

3.00%,

11/01/2050

3.00%,

03/01/2052

833

749

3.00%,

04/01/2052

1,045

941

3.00%,

06/01/2052

3.00%,

07/01/2052

1,107

983

3.50%,

04/01/2030

3.50%,

08/01/2034

3.50%,

12/01/2040

3.50%,

12/01/2041

3.50%,

03/01/2042

3.50%,

04/01/2042

3.50%,

11/01/2042

3.50%,

01/01/2044

3.50%,

05/01/2046

3.50%,

10/01/2047

560

531

3.50%,

06/01/2051

3.50%,

06/01/2052

623

580

4.00%,

05/01/2041

4.00%,

10/01/2041

4.00%,

10/01/2041

4.00%,

11/01/2041

4.00%,

04/01/2042

4.00%,

02/01/2044

4.00%,

09/01/2044

4.00%,

09/01/2045

4.00%,

12/01/2045

4.00%,

01/01/2047

4.00%,

10/01/2048

4.00%,

10/01/2052

4.00%,

03/01/2053

1,092

1,043

4.00%,

07/01/2053

888

847

4.00%,

08/01/2053

1,565

1,486

4.50%,

08/01/2040

4.50%,

11/01/2040

4.50%,

08/01/2041

4.50%,

09/01/2041

4.50%,

06/01/2046

4.50%,

05/01/2047

4.50%,

05/01/2047

4.50%,

05/01/2049

4.50%,

07/01/2052

616

607

4.50%,

09/01/2052

1,480

1,459

4.50%,

10/01/2052

1,451

1,423

4.50%,

05/01/2053

4.50%,

05/01/2053

542

531

4.50%,

07/01/2053

643

633

4.50%,

08/01/2053

4.50%,

01/01/2054

5.00%,

10/01/2041

5.00%,

06/01/2048

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2025

See

accompanying

notes.

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

Federal

National

Mortgage

Association

(FNMA)/Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

Uniform

Mortgage-Backed

Security

(continued)

5.00%,

07/01/2052

$

$

5.00%,

09/01/2052

5.00%,

04/01/2053

557

559

5.00%,

04/01/2053

801

802

5.00%,

06/01/2053

818

819

5.00%,

06/01/2053

719

723

5.00%,

08/01/2053

793

796

5.00%,

11/01/2054

698

703

5.00%,

11/01/2054

5.00%,

11/01/2054

615

618

5.00%,

12/01/2054

880

885

5.00%,

02/01/2055

5.50%,

07/01/2033

5.50%,

08/01/2036

5.50%,

05/01/2040

5.50%,

02/01/2053

952

975

5.50%,

07/01/2053

5.50%,

11/01/2053

587

601

5.50%,

11/01/2053

582

598

5.50%,

03/01/2054

5.50%,

05/01/2054

5.50%,

02/01/2055

813

830

5.50%,

04/01/2055

504

514

5.50%,

04/01/2055

5.50%,

06/01/2055

5.50%,

06/01/2055

664

680

5.50%,

08/01/2055

508

520

5.50%,

08/01/2055

5.50%,

08/01/2055

607

620

5.50%,

01/01/2056

(n) 1,615

1,638

6.00%,

05/01/2031

6.00%,

07/01/2035

6.00%,

02/01/2037

6.00%,

02/01/2038

6.00%,

01/01/2053

6.00%,

04/01/2054

6.00%,

05/01/2054

6.00%,

06/01/2054

6.00%,

08/01/2054

747

773

6.00%,

09/01/2054

505

6.00%,

09/01/2054

6.00%,

11/01/2054

697

724

6.50%,

03/01/2032

6.50%,

07/01/2037

6.50%,

02/01/2038

6.50%,

09/01/2038

6.50%,

10/01/2053

6.50%,

05/01/2054

6.50%,

04/01/2055

$

50,802

Government

National

Mortgage

Association

(GNMA)

-

.91

%

2.00%,

07/20/2051

954

790

2.00%,

08/20/2051

2.50%,

06/20/2050

2.50%,

04/20/2051

2.50%,

09/20/2051

621

536

3.00%,

07/20/2044

3.00%,

01/20/2046

3.00%,

12/20/2046

3.00%,

09/20/2051

3.50%,

04/20/2046

4.00%,

06/20/2046

4.00%,

04/20/2052

4.00%,

10/20/2052

901

857

4.00%,

12/20/2052

778

741

4.50%,

09/15/2039

4.50%,

11/15/2040

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

Government

National

Mortgage

Association

(GNMA)

(continued)

4.50%,

08/20/2052

$

675

$

663

4.50%,

09/20/2052

509

500

4.50%,

06/20/2053

1,383

1,353

4.50%,

08/20/2053

1,502

1,471

4.50%,

01/20/2056

(n) 650

633

5.00%,

02/20/2053

1,168

1,172

5.00%,

05/20/2053

5.00%,

09/20/2053

5.00%,

10/20/2053

923

927

5.00%,

02/20/2054

5.00%,

04/20/2054

1,154

1,155

5.00%,

01/20/2056

(n) 2,135

2,130

5.50%,

12/20/2033

5.50%,

05/20/2035

5.50%,

12/20/2048

5.50%,

06/20/2053

772

784

5.50%,

01/20/2056

(n) 3,820

3,859

6.00%,

01/20/2029

6.00%,

12/15/2033

6.00%,

12/20/2036

6.00%,

04/20/2054

584

596

6.50%,

05/20/2029

6.50%,

12/15/2032

8.00%,

12/15/2030

$

21,922

U.S.

Treasury

-

.05

%

3.00%,

05/15/2045

1,140

877

3.00%,

11/15/2045

(o) 2,750

2,101

3.38%,

09/15/2028

1,000

996

3.63%,

08/31/2027

5,170

5,182

3.75%,

05/15/2028

1,140

1,146

4.00%,

05/31/2030

4.25%,

08/15/2035

4.50%,

11/15/2033

2,000

2,065

4.75%,

02/15/2037

1,435

1,503

4.88%,

08/15/2045

3,000

3,029

$

17,354

U.S.

Treasury

Bill

-

.68

%

3.62%,

01/22/2026

(p) 4,140

4,132

TOTAL

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

$

95,727

Total

Investments

$

256,222

Other

Assets

and

Liabilities

- (4.13)%

(10,168)

TOTAL

NET

ASSETS

-

100.00%

$

246,054

(a) Security

or

a

portion

of

the

security

was

on

loan. At

the

end

of

the

period,

the

value

of

these

securities

totaled

$3,832

or

1.56%

of

net

assets.

(b) 1-day

yield

shown

is

as

of

period

end.

(c) Security

or

a

portion

of

the

security

was

received

as

collateral

for

securities

lending.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$3,958

or

1.61%

of

net

assets.

(d) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(e) Security

exempt

from

registration

under

Rule

144A

of

the

Securities

Act

of

1933. These

securities

may

be

resold

in

transactions

exempt

from

registration,

normally

to

qualified

institutional

buyers.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$58,728

or

23.87%

of

net

assets.

(f) Rate

shown

is

as

of

period

end.

The

rate

may

be

a

variable

or

floating

rate

or

a

fixed

rate

which

may

convert

to

a

variable

or

floating

rate

in

the

future.

(g) Perpetual

security.

Perpetual

securities

pay

an

indefinite

stream

of

interest,

but

they

may

be

called

by

the

issuer

at

an

earlier

date.

Date

shown,

if

any,

reflects

the

next

call

date

or

final

legal

maturity

date.

Rate

shown

is

as

of

period

end.

Schedule

of

Investments

Core

Plus

Bond

Account

December

31,

2025

See

accompanying

notes.

(h) Security

is

a

contingent

convertible

security,

("CoCo").

CoCo's

are

hybrid

debt

securities

that

may

convert

to

equity

or

have

their

principal

written

down

upon

occurrence

of

certain

"triggers".

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$535

or

0.22%

of

net

assets.

(i) Certain

variable

rate

securities

are

not

based

on

a

published

reference

rate

and

spread

but

are

determined

by

the

issuer

or

agent

and

are

based

on

current

market

conditions. These

securities

do

not

indicate

a

reference

rate

and

spread

in

their

description.

Rate

shown

is

the

rate

in

effect

as

of

period

end.

(j) Security

is

an

Interest

Only

Strip.

(k) Non-income

producing

security

(l) Payment

in

kind;

the

issuer

has

the

option

of

paying

additional

securities

in

lieu

of

cash.

(m) The

value

of

these

investments

was

determined

using

significant

unobservable

inputs,

in

good

faith

by

the

Manager,

under

procedures

established

and

periodically

reviewed

by

the

Board

of

Directors.

(n) Security

was

purchased

in

a

"to-be-announced"

("TBA")

transaction.

(o) Security

or

a

portion

of

the

security

was

pledged

to

cover

margin

requirements

for

futures

contracts.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$1,440

or

0.59%

of

net

assets.

(p) Rate

shown

is

the

discount

rate

of

the

original

purchase.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

12,737

$

229,342

$

234,518

$

7,561

$

12,737

$

229,342

$

234,518

$

7,561

Income

(a) Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

$

—

$

—

$

—

$

$

—

$

—

$

—

Amounts

in

thousands.

(a) Amount

excludes

earnings

from

securities

lending

collateral.

Futures

Contracts

Description

and

Expiration

Date

Type

Contracts

Notional

Amount

Value

and

Unrealized

Appreciation/(Depreciation)

US

Year

Treasury

Note;

March

2026

Long

$

2,136

$

(19)

US

Year

Treasury

Ultra

Note;

March

2026

Short

9,776

US

Year

Treasury

Note;

March

2026

Long

30,901

(3)

US

Year

Treasury Note;

March

2026

Long

33,119

(48)

US

Long

Bond;

March

2026

Long

5,664

(49)

US

Ultra

Bond;

March

2026

Long

3,894

(60)

Total

$

(158)

Amounts

in

thousands

except

contracts.

Schedule

of

Investments

Diversified

Balanced

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.03

%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

-

.90

%

International

Equity

Index

Fund

(a) 2,559,934

$

35,634

MidCap

S&P

Index

Fund

(a) 918,574

19,832

SmallCap

S&P

600

Index

Fund

(a) 795,606

19,548

$

75,014

Principal

Variable

Contracts

Funds,

Inc. Class

-

.13

%

Bond

Market

Index

Account

(a) 26,664,866

252,250

LargeCap

S&P

500

Index

Account

(a) 7,259,593

176,408

$

428,658

TOTAL

INVESTMENT

COMPANIES

$

503,672

Total

Investments

$

503,672

Other

Assets

and

Liabilities

- (0.03)%

(129)

TOTAL

NET

ASSETS

-

100.00%

$

503,543

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Bond

Market

Index

Account

$

315,233

$

40,367

$

111,711

$

252,250

International

Equity

Index

Fund

43,356

2,723

20,071

35,634

LargeCap

S&P

500

Index

Account

215,573

50,972

87,485

176,408

MidCap

S&P

Index

Fund

24,252

5,192

9,465

19,832

SmallCap

S&P

600

Index

Fund

23,979

6,767

10,463

19,548

$

622,393

$

106,021

$

239,195

$

503,672

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Bond

Market

Index

Account

$

11,352

$

(4,260)

$

—

$

12,621

International

Equity

Index

Fund

912

4,790

4,836

LargeCap

S&P

500

Index

Account

2,879

32,040

31,060

(34,692)

MidCap

S&P

Index

Fund

1,077

1,265

(1,224)

SmallCap

S&P

600

Index

Fund

624

1,393

1,344

(2,128)

$

16,183

$

35,040

$

33,952

$

(20,587)

Amounts

in

thousands.

Schedule

of

Investments

Diversified

Balanced

Adaptive

Allocation

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.11

%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

.08

%

iShares

Core

S&P

500

ETF

63,589

$

43,555

Money

Market

Funds

-

.00

%

Principal

Government

Money

Market

Fund

-

Class

3.67%

(a),(b)

—

Principal

Funds,

Inc.

Class

-

.91

%

International

Equity

Index

Fund

(a) 1,104,245

15,371

MidCap

S&P

Index

Fund

(a) 395,687

8,543

SmallCap

S&P

600

Index

Fund

(a) 342,720

8,420

$

32,334

Principal

Variable

Contracts

Funds,

Inc. Class

-

.12

%

Bond

Market

Index

Account

(a) 11,486,041

108,658

LargeCap

S&P

500

Index

Account

(a) 1,340,206

32,567

$

141,225

TOTAL

INVESTMENT

COMPANIES

$

217,114

Total

Investments

$

217,114

Other

Assets

and

Liabilities

- (0.11)%

(230)

TOTAL

NET

ASSETS

-

100.00%

$

216,884

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b) 1-day

yield

shown

is

as

of

period

end.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Bond

Market

Index

Account

$

119,015

$

13,522

$

27,064

$

108,658

International

Equity

Index

Fund

16,471

1,148

6,037

15,371

LargeCap

S&P

500

Index

Account

34,886

8,380

10,149

32,567

MidCap

S&P

Index

Fund

9,156

1,949

2,469

8,543

Principal

Government

Money

Market

Fund

-

Class

3.67%

66,948

66,950

—

SmallCap

S&P

600

Index

Fund

8,971

2,711

2,929

8,420

$

188,501

$

94,658

$

115,598

$

173,559

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Bond

Market

Index

Account

$

4,640

$

$

—

$

3,128

International

Equity

Index

Fund

3,296

LargeCap

S&P

500

Index

Account

504

1,436

5,439

(1,986)

MidCap

S&P

Index

Fund

544

(111)

Principal

Government

Money

Market

Fund

-

Class

3.67%

—

—

—

SmallCap

S&P

600

Index

Fund

578

(383)

$

6,318

$

2,054

$

6,683

$

3,944

Amounts

in

thousands.

Schedule

of

Investments

Diversified

Balanced

Strategic

Allocation

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.03

%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

-

.91

%

International

Equity

Index

Fund

(a) 445,665

$

6,204

MidCap

S&P

Index

Fund

(a) 159,916

3,453

SmallCap

S&P

600

Index

Fund

(a) 138,507

3,403

$

13,060

Principal

Variable

Contracts

Funds,

Inc. Class

-

.12

%

Bond

Market

Index

Account

(a) 4,642,060

43,914

LargeCap

S&P

500

Managed

Volatility

Index

Account

(a) 1,972,305

30,669

$

74,583

TOTAL

INVESTMENT

COMPANIES

$

87,643

Total

Investments

$

87,643

Other

Assets

and

Liabilities

- (0.03)%

(26)

TOTAL

NET

ASSETS

-

100.00%

$

87,617

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Bond

Market

Index

Account

$

56,979

$

7,089

$

21,667

$

43,914

International

Equity

Index

Fund

7,838

522

3,866

6,204

LargeCap

S&P

500

Managed

Volatility

Index

Account

39,029

10,497

16,565

30,669

MidCap

S&P

Index

Fund

4,385

983

1,885

3,453

SmallCap

S&P

600

Index

Fund

4,336

1,266

2,057

3,403

$

112,567

$

20,357

$

46,040

$

87,643

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Bond

Market

Index

Account

$

1,954

$

(1,242)

$

—

$

2,755

International

Equity

Index

Fund

809

901

LargeCap

S&P

500

Managed

Volatility

Index

Account

515

3,974

7,082

(6,266)

MidCap

S&P

Index

Fund

(146)

SmallCap

S&P

600

Index

Fund

(218)

$

2,809

$

3,733

$

7,586

$

(2,974)

Amounts

in

thousands.

Schedule

of

Investments

Diversified

Growth

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.03

%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

-

.89

%

International

Equity

Index

Fund

(a) 13,460,910

$

187,376

MidCap

S&P

Index

Fund

(a) 4,226,202

91,244

SmallCap

S&P

600

Index

Fund

(a) 3,660,262

89,932

$

368,552

Principal

Variable

Contracts

Funds,

Inc. Class

-

.14

%

Bond

Market

Index

Account

(a) 68,702,129

649,922

LargeCap

S&P

500

Index

Account

(a) 34,355,686

834,843

$

1,484,765

TOTAL

INVESTMENT

COMPANIES

$

1,853,317

Total

Investments

$

1,853,317

Other

Assets

and

Liabilities

- (0.03)%

(493)

TOTAL

NET

ASSETS

-

100.00%

$

1,852,824

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Bond

Market

Index

Account

$

848,673

$

122,209

$

343,293

$

649,922

International

Equity

Index

Fund

238,204

14,337

116,575

187,376

LargeCap

S&P

500

Index

Account

1,065,904

222,829

440,764

834,843

MidCap

S&P

Index

Fund

116,588

22,115

46,611

91,244

SmallCap

S&P

600

Index

Fund

115,272

29,740

51,390

89,932

$

2,384,641

$

411,230

$

998,633

$

1,853,317

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Bond

Market

Index

Account

$

29,256

$

(13,636)

$

—

$

35,969

International

Equity

Index

Fund

4,807

24,524

1,494

26,886

LargeCap

S&P

500

Index

Account

13,630

170,302

147,039

(183,428)

MidCap

S&P

Index

Fund

1,923

5,820

5,841

(6,668)

SmallCap

S&P

600

Index

Fund

2,884

7,098

6,207

(10,788)

$

52,500

$

194,108

$

160,581

$

(138,029)

Amounts

in

thousands.

Schedule

of

Investments

Diversified

Growth

Adaptive

Allocation

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.11

%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

.13

%

iShares

Core

S&P

500

ETF

427,005

$

292,473

Money

Market

Funds

-

.00

%

Principal

Government

Money

Market

Fund

-

Class

3.67%

(a),(b)

2,105

Principal

Funds,

Inc.

Class

-

.87

%

International

Equity

Index

Fund

(a) 10,536,802

146,672

MidCap

S&P

Index

Fund

(a) 3,314,772

71,566

SmallCap

S&P

600

Index

Fund

(a) 2,871,022

70,541

$

288,779

Principal

Variable

Contracts

Funds,

Inc. Class

-

.11

%

Bond

Market

Index

Account

(a) 53,886,111

509,763

LargeCap

S&P

500

Index

Account

(a) 14,969,881

363,768

$

873,531

TOTAL

INVESTMENT

COMPANIES

$

1,454,785

Total

Investments

$

1,454,785

Other

Assets

and

Liabilities

- (0.11)%

(1,665)

TOTAL

NET

ASSETS

-

100.00%

$

1,453,120

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b) 1-day

yield

shown

is

as

of

period

end.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Bond

Market

Index

Account

$

551,294

$

71,629

$

127,980

$

509,763

International

Equity

Index

Fund

155,417

10,324

54,942

146,672

LargeCap

S&P

500

Index

Account

384,732

83,793

97,985

363,768

MidCap

S&P

Index

Fund

75,768

14,659

17,934

71,566

Principal

Government

Money

Market

Fund

-

Class

3.67%

489,986

489,986

SmallCap

S&P

600

Index

Fund

74,920

20,152

21,703

70,541

$

1,242,133

$

690,543

$

810,530

$

1,162,312

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Bond

Market

Index

Account

$

21,677

$

$

—

$

14,796

International

Equity

Index

Fund

3,763

2,992

1,165

32,881

LargeCap

S&P

500

Index

Account

5,611

11,236

60,528

(18,008)

MidCap

S&P

Index

Fund

1,501

4,562

(1,117)

Principal

Government

Money

Market

Fund

-

Class

3.67%

2,353

—

—

—

SmallCap

S&P

600

Index

Fund

2,252

4,847

(3,122)

$

37,157

$

14,736

$

71,102

$

25,430

Amounts

in

thousands.

Schedule

of

Investments

Diversified

Growth

Strategic

Allocation

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.03

%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

-

.91

%

International

Equity

Index

Fund

(a) 1,425,965

$

19,849

MidCap

S&P

Index

Fund

(a) 447,736

9,667

SmallCap

S&P

600

Index

Fund

(a) 387,803

9,528

$

39,044

Principal

Variable

Contracts

Funds,

Inc. Class

-

.12

%

Bond

Market

Index

Account

(a) 7,278,262

68,852

LargeCap

S&P

500

Managed

Volatility

Index

Account

(a) 5,679,763

88,319

$

157,171

TOTAL

INVESTMENT

COMPANIES

$

196,215

Total

Investments

$

196,215

Other

Assets

and

Liabilities

- (0.03)%

(54)

TOTAL

NET

ASSETS

-

100.00%

$

196,161

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Bond

Market

Index

Account

$

86,573

$

12,701

$

32,737

$

68,852

International

Equity

Index

Fund

24,299

1,598

11,465

19,849

LargeCap

S&P

500

Managed

Volatility

Index

Account

108,896

28,579

42,169

88,319

MidCap

S&P

Index

Fund

11,893

2,505

4,657

9,667

SmallCap

S&P

600

Index

Fund

11,758

3,294

5,158

9,528

$

243,419

$

48,677

$

96,186

$

196,215

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Bond

Market

Index

Account

$

3,130

$

(1,716)

$

—

$

4,031

International

Equity

Index

Fund

508

2,298

3,119

LargeCap

S&P

500

Managed

Volatility

Index

Account

1,514

9,183

20,832

(16,170)

MidCap

S&P

Index

Fund

615

(312)

SmallCap

S&P

600

Index

Fund

654

(558)

$

5,659

$

10,195

$

22,258

$

(9,890)

Amounts

in

thousands.

Schedule

of

Investments

Diversified

Income

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.03

%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

-

.91

%

International

Equity

Index

Fund

(a) 523,057

$

7,281

MidCap

S&P

Index

Fund

(a) 246,329

5,318

SmallCap

S&P

600

Index

Fund

(a) 213,353

5,242

$

17,841

Principal

Variable

Contracts

Funds,

Inc. Class

-

.12

%

Bond

Market

Index

Account

(a) 12,394,772

117,255

LargeCap

S&P

500

Index

Account

(a) 1,854,102

45,055

$

162,310

TOTAL

INVESTMENT

COMPANIES

$

180,151

Total

Investments

$

180,151

Other

Assets

and

Liabilities

- (0.03)%

(52)

TOTAL

NET

ASSETS

-

100.00%

$

180,099

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Bond

Market

Index

Account

$

140,681

$

20,040

$

47,153

$

117,255

International

Equity

Index

Fund

8,504

856

4,002

7,281

LargeCap

S&P

500

Index

Account

52,851

15,629

22,764

45,055

MidCap

S&P

Index

Fund

6,243

1,707

2,590

5,318

SmallCap

S&P

600

Index

Fund

6,173

2,114

2,845

5,242

$

214,452

$

40,346

$

79,354

$

180,151

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Bond

Market

Index

Account

$

5,180

$

(2,224)

$

—

$

5,911

International

Equity

Index

Fund

740

1,183

LargeCap

S&P

500

Index

Account

722

5,742

7,789

(6,403)

MidCap

S&P

Index

Fund

(215)

SmallCap

S&P

600

Index

Fund

(418)

$

6,368

$

4,649

$

8,545

$

Amounts

in

thousands.

Schedule

of

Investments

Diversified

International

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

1.62%

Shares

Held

Value

(000's)

Money

Market

Funds

-

1.62%

BlackRock

Liquidity

FedFund

-

Institutional

Class

3.64%

(a),(b)

105,822

$

Principal

Government

Money

Market

Fund

-

Class

3.67%

(a),(b),(c)

4,033,610

4,034

$

4,139

TOTAL

INVESTMENT

COMPANIES

$

4,139

COMMON

STOCKS

-

99.29%

Shares

Held

Value

(000's)

Aerospace

&

Defense

-

3.54%

Airbus

SE

21,799

$

5,062

BAE

Systems

PLC

174,736

4,022

$

9,084

Agriculture

-

1.10%

British

American

Tobacco

PLC

49,712

2,818

Airlines

-

1.14%

Ryanair

Holdings

PLC

84,513

2,914

Apparel

-

0.95%

PRADA

SpA

107,600

623

Samsonite

Group

SA

(d) 709,500

1,812

$

2,435

Automobile

Manufacturers

-

1.02%

Toyota

Motor

Corp

122,300

2,627

Banks

-

13.54%

AIB

Group

PLC

385,990

4,126

Credicorp

Ltd

9,883

2,837

DBS

Group

Holdings

Ltd

71,400

3,128

Erste

Group

Bank

AG

31,858

3,820

FinecoBank

Banca

Fineco

SpA

48,446

1,255

Grupo

Financiero

Banorte

SAB

de

CV

67,359

624

ICICI

Bank

Ltd

ADR

71,013

2,116

National

Bank

of

Greece

SA

252,075

3,845

NatWest

Group

PLC

279,993

2,456

Nordea

Bank

Abp

84,686

1,593

Piraeus

Bank

SA

(e) 170,800

1,364

PT

Bank

Central

Asia

Tbk

1,798,000

868

Societe

Generale

SA

24,463

1,969

Swedbank

AB

36,155

1,254

UniCredit

SpA

41,610

3,447

$

34,702

Beverages

-

0.66%

Arca

Continental

SAB

de

CV

91,600

989

Kweichow

Moutai

Co

Ltd

3,598

711

$

1,700

Biotechnology

-

1.03%

Argenx

SE

(e) 3,034

2,559

Zai

Lab

Ltd

ADR

(e) 4,476

$

2,638

Building

Materials

-

3.28%

CRH

PLC

41,138

5,112

Mitsubishi

Electric

Corp

113,100

3,297

$

8,409

Commercial

Services

-

2.76%

Ashtead

Group

PLC

35,805

2,441

Elis

SA

69,363

1,968

Localiza

Rent

a

Car

SA

174,834

1,390

TOPPAN

Holdings

Inc

42,600

1,267

$

7,066

Computers

-

1.76%

Fujitsu

Ltd

164,300

4,515

Cosmetics

&

Personal

Care

-

2.69%

Haleon

PLC

815,974

4,124

L'Oreal

SA

4,684

2,011

Unilever

PLC

11,760

768

$

6,903

Distribution

&

Wholesale

-

0.88%

Rexel

SA

57,406

2,252

Electric

-

0.28%

Iberdrola

SA

33,263

720

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Electronics

-

2.03%

Halma

PLC

19,000

$

902

Hoya

Corp

28,396

4,307

$

5,209

Engineering

&

Construction

-

2.42%

Kajima

Corp

48,200

1,797

Obayashi

Corp

93,300

1,953

Stantec

Inc

22,800

2,151

Technip

Energies

NV

8,235

$

6,215

Entertainment

-

1.59%

Entain

PLC

212,880

2,188

Universal

Music

Group

NV

72,167

1,882

$

4,070

Food

-

0.85%

Danone

SA

15,612

1,408

Toyo

Suisan

Kaisha

Ltd

11,200

769

$

2,177

Forest

Products

&

Paper

-

1.12%

Suzano

SA

305,500

2,868

Healthcare

-

Products

-

1.75%

Alcon

AG

18,368

1,454

Smith

&

Nephew

PLC

182,215

3,030

$

4,484

Healthcare

-

Services

-

0.96%

ICON

PLC

(e) 13,491

2,458

Insurance

-

7.18%

AIA

Group

Ltd

675,400

6,952

ASR

Nederland

NV

14,503

1,032

AXA

SA

29,860

1,433

Fairfax

Financial

Holdings

Ltd

1,100

2,096

Hannover

Rueck

SE

9,071

2,823

Sompo

Holdings

Inc

120,100

4,076

$

18,412

Internet

-

6.58%

MercadoLibre

Inc

(e) 604

1,217

Scout24

SE

(d) 15,095

1,516

Spotify

Technology

SA

(e) 3,841

2,230

Tencent

Holdings

Ltd

104,300

8,004

Trip.com

Group

Ltd

43,650

3,130

Wix.com

Ltd

(e) 7,295

758

$

16,855

Lodging

-

0.52 %

InterContinental

Hotels

Group

PLC

9,428

1,325

Machinery

-

Construction

&

Mining

-

1.22%

Komatsu

Ltd

62,800

1,993

Weir

Group

PLC/The

29,759

1,137

$

3,130

Machinery

-

Diversified

-

1.62%

Atlas

Copco

AB

-

A

Shares

129,747

2,310

Keyence

Corp

5,100

1,845

$

4,155

Media

-

0.73%

Liberty

Media

Corp-Liberty

Formula

One

-

C

Shares

(e) 19,032

1,875

Metal

Fabrication

&

Hardware

-

0.33%

APL

Apollo

Tubes

Ltd

40,011

853

Mining

-

3.41%

Impala

Platinum

Holdings

Ltd

141,593

2,225

Sandfire

Resources

Ltd

(e) 177,885

2,113

Teck

Resources

Ltd

91,800

4,395

$

8,733

Oil

&

Gas

-

3.51%

ARC

Resources

Ltd

(f) 82,100

1,540

Canadian

Natural

Resources

Ltd

37,700

1,277

Shell

PLC

34,888

1,286

Suncor

Energy

Inc

110,300

4,895

$

8,998

Schedule

of

Investments

Diversified

International

Account

December

31,

2025

See

accompanying

notes.

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Packaging

&

Containers

-

0.68%

Toyo

Seikan

Group

Holdings

Ltd

70,900

$

1,731

Pharmaceuticals

-

5.61%

Ascendis

Pharma

A/S

ADR

(e) 6,482

1,382

AstraZeneca

PLC

40,591

7,512

Sanofi

SA

52,080

5,039

Zealand

Pharma

A/S

(e) 6,111

$

14,377

Pipelines

-

1.32%

Gaztransport

Et

Technigaz

SA

13,588

2,493

Gibson

Energy

Inc

(f) 48,200

882

$

3,375

Private

Equity

-

1.15%

3i

Group

PLC

41,367

1,814

Brookfield

Corp

11,853

544

CVC

Capital

Partners

PLC

(d) 35,825

600

$

2,958

Retail

-

4.32%

Cie

Financiere

Richemont

SA

10,232

2,207

CP

ALL

PCL

517,200

710

Dollarama

Inc

13,100

1,958

Industria

de

Diseno

Textil

SA

21,669

1,429

Jumbo

SA

20,756

681

Yum

China

Holdings

Inc

86,476

4,094

$

11,079

Semiconductors

-

10.47%

ASML

Holding

NV

6,949

7,488

Samsung

Electronics

Co

Ltd

84,631

7,093

Taiwan

Semiconductor

Manufacturing

Co

Ltd

249,140

12,247

$

26,828

Software

-

1.42%

Dassault

Systemes

SE

33,442

934

Nemetschek

SE

15,314

1,657

Nice

Ltd

ADR

(e) 1,216

Sage

Group

PLC/The

62,236

905

$

3,634

Telecommunications

-

2.69%

Deutsche

Telekom

AG

211,469

6,884

Toys,

Games

&

Hobbies

-

1.18%

Nintendo

Co

Ltd

44,700

3,018

TOTAL

COMMON

STOCKS

$

254,484

PREFERRED

STOCKS

-

0.02%

Shares

Held

Value

(000's)

Commercial

Services

-

0.02%

Localiza

Rent

a

Car

SA

0.00%

(e) 6,724

$

TOTAL

PREFERRED

STOCKS

$

Total

Investments

$

258,674

Other

Assets

and

Liabilities

- (0.93)%

(2,383)

TOTAL

NET

ASSETS

-

100.00%

$

256,291

(a) 1-day

yield

shown

is

as

of

period

end.

(b) Security

or

a

portion

of

the

security

was

received

as

collateral

for

securities

lending.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$2,546

or

0.99%

of

net

assets.

(c) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(d) Security

exempt

from

registration

under

Rule

144A

of

the

Securities

Act

of

1933. These

securities

may

be

resold

in

transactions

exempt

from

registration,

normally

to

qualified

institutional

buyers.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$3,928

or

1.53%

of

net

assets.

(e) Non-income

producing

security

(f) Security

or

a

portion

of

the

security

was

on

loan. At

the

end

of

the

period,

the

value

of

these

securities

totaled

$2,398

or

0.94%

of

net

assets.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

2,079

$

93,978

$

92,023

$

4,034

$

2,079

$

93,978

$

92,023

$

4,034

Income

(a) Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

$

—

$

—

$

—

$

$

—

$

—

$

—

Amounts

in

thousands.

(a) Amount

excludes

earnings

from

securities

lending

collateral.

Schedule

of

Investments

Equity

Income

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.78

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

.78

%

BlackRock

Liquidity

FedFund

-

Institutional

Class

3.64%

(a),(b)

164,503

$

Principal

Government

Money

Market

Fund

-

Class

3.67%

(a),(b),(c)

11,925,404

11,925

$

12,090

TOTAL

INVESTMENT

COMPANIES

$

12,090

COMMON

STOCKS

-

.82

%

Shares

Held

Value

(000's)

Advertising

-

.49

%

Omnicom

Group

Inc

62,146

$

5,019

Publicis

Groupe

SA

ADR

196,147

5,076

$

10,095

Automobile

Manufacturers

-

.77

%

Cummins

Inc

33,362

17,030

PACCAR

Inc

140,562

15,393

$

32,423

Banks

-

.62

%

Bank

of

America

Corp

322,594

17,743

Citigroup

Inc

45,890

5,355

JPMorgan

Chase

&

Co

75,734

24,403

Morgan

Stanley

111,888

19,864

PNC

Financial

Services

Group

Inc/The

88,116

18,392

$

85,757

Beverages

-

.18

%

Coca-Cola

Co/The

212,093

14,827

Biotechnology

-

.85

%

Corteva

Inc

187,410

12,562

Building

Materials

-

.78

%

Carrier

Global

Corp

65,067

3,438

Trane

Technologies

PLC

39,640

15,428

$

18,866

Chemicals

-

.79

%

Air

Products

and

Chemicals

Inc

21,755

5,374

Computers

-

.37

%

Apple

Inc

59,310

16,124

Cosmetics

&

Personal

Care

-

.68

%

Procter

&

Gamble

Co/The

79,625

11,411

Diversified

Financial

Services

-

.24

%

Blackrock

Inc

14,103

15,095

Nasdaq

Inc

71,538

6,949

$

22,044

Electric

-

.56

%

NextEra

Energy

Inc

146,027

11,723

Sempra

59,509

5,254

WEC

Energy

Group

Inc

61,843

6,522

Xcel

Energy

Inc

101,555

7,501

$

31,000

Food

-

.05

%

Hershey

Co/The

2,022

Healthcare

-

Products

-

.96

%

Abbott

Laboratories

90,012

11,277

STERIS

PLC

34,730

8,805

$

20,082

Healthcare

-

Services

-

.85

%

HCA

Healthcare

Inc

26,958

12,585

UnitedHealth

Group

Inc

20,492

6,765

$

19,350

Home

Builders

-

.55

%

DR

Horton

Inc

120,370

17,337

Insurance

-

.85

%

Chubb

Ltd

55,777

17,409

F&G

Annuities

&

Life

Inc

9,267

Fidelity

National

Financial

Inc

154,451

8,431

$

26,126

Internet

-

.81

%

Alphabet

Inc

-

A

Shares

82,783

25,911

Iron

&

Steel

-

.44

%

Reliance

Inc

33,958

9,809

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Lodging

-

.69

%

Hilton

Worldwide

Holdings

Inc

63,686

$

18,294

Machinery

-

Diversified

-

.00

%

Deere

&

Co

29,113

13,554

Media

-

.21

%

Comcast

Corp

-

Class

A

48,242

1,442

Miscellaneous

Manufacturers

-

.57

%

Parker-Hannifin

Corp

19,902

17,493

Oil

&

Gas

-

.07

%

Chevron

Corp

46,995

7,163

EOG

Resources

Inc

88,088

9,250

Marathon

Petroleum

Corp

69,023

11,225

$

27,638

Pharmaceuticals

-

.03

%

AstraZeneca

PLC

ADR

84,908

7,805

Eli

Lilly

&

Co

6,607

7,100

Merck

&

Co

Inc

137,507

14,474

Novartis

AG

ADR

104,110

14,354

Roche

Holding

AG

ADR

(d) 77,831

4,014

$

47,747

Pipelines

-

.66

%

Enterprise

Products

Partners

LP

352,445

11,299

Private

Equity

-

.92

%

KKR

&

Co

Inc

155,670

19,845

REITs

-

.63

%

Alexandria

Real

Estate

Equities

Inc

912

Equity

LifeStyle

Properties

Inc

128,953

7,816

Prologis

Inc

52,124

6,654

Realty

Income

Corp

59,486

3,353

$

17,868

Retail

-

.90

%

Costco

Wholesale

Corp

21,500

18,540

Starbucks

Corp

96,530

8,129

Williams-Sonoma

Inc

37,047

6,616

$

33,285

Semiconductors

-

.24

%

Broadcom

Inc

29,151

10,089

Monolithic

Power

Systems

Inc

7,700

6,979

Taiwan

Semiconductor

Manufacturing

Co

Ltd

ADR

60,926

18,515

$

35,583

Software

-

.45

%

Fidelity

National

Information

Services

Inc

5,342

Microsoft

Corp

23,366

11,300

Salesforce

Inc

19,519

5,171

SAP

SE

ADR

27,317

6,636

$

23,462

Telecommunications

-

.22

%

T-Mobile

US

Inc

74,246

15,075

Transportation

-

.39

%

Expeditors

International

of

Washington

Inc

63,227

9,421

TOTAL

COMMON

STOCKS

$

671,472

Total

Investments

$

683,562

Other

Assets

and

Liabilities

- (0.60)%

(4,078)

TOTAL

NET

ASSETS

-

100.00%

$

679,484

(a) 1-day

yield

shown

is

as

of

period

end.

(b) Security

or

a

portion

of

the

security

was

received

as

collateral

for

securities

lending.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$4,065

or

0.60%

of

net

assets.

(c) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(d) Security

or

a

portion

of

the

security

was

on

loan. At

the

end

of

the

period,

the

value

of

these

securities

totaled

$3,974

or

0.58%

of

net

assets.

Schedule

of

Investments

Equity

Income

Account

December

31,

2025

See

accompanying

notes.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

11,384

$

259,684

$

259,143

$

11,925

$

11,384

$

259,684

$

259,143

$

11,925

Income

(a) Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

$

—

$

—

$

—

$

$

—

$

—

$

—

Amounts

in

thousands.

(a) Amount

excludes

earnings

from

securities

lending

collateral.

Schedule

of

Investments

Global

Emerging

Markets

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.41

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

.41

%

Principal

Government

Money

Market

Fund

-

Class

3.67%

(a),(b)

333,500

$

TOTAL

INVESTMENT

COMPANIES

$

COMMON

STOCKS

-

.34

%

Shares

Held

Value

(000's)

Aerospace

&

Defense

-

.71

%

Korea

Aerospace

Industries

Ltd

12,219

$

968

LIG

Nex1

Co

Ltd

1,469

$

1,396

Automobile

Manufacturers

-

.85

%

BYD

Co

Ltd

80,300

982

Mahindra

&

Mahindra

Ltd

12,718

525

$

1,507

Automobile

Parts

&

Equipment

-

.09

%

Hyundai

Mobis

Co

Ltd

1,875

Weichai

Power

Co

Ltd

163,830

$

890

Banks

-

.63

%

Banco

del

Bajio

SA

(c) 17,905

Credicorp

Ltd

4,716

1,354

Grupo

Financiero

Banorte

SAB

de

CV

92,500

857

HDFC

Bank

Ltd

162,613

1,796

ICICI

Bank

Ltd

88,008

1,317

IDFC

First

Bank

Ltd

912,760

870

National

Bank

of

Greece

SA

46,394

708

Piraeus

Bank

SA

(d) 114,172

912

Powszechna

Kasa

Oszczednosci

Bank

Polski

SA

47,644

1,125

PT

Bank

Central

Asia

Tbk

2,421,800

1,169

Saudi

National

Bank/The

12,404

Vietnam

Technological

&

Commercial

Joint

Stock

Bank

639,600

848

$

11,126

Beverages

-

.00

%

Arca

Continental

SAB

de

CV

72,900

787

Varun

Beverages

Ltd

155,489

849

$

1,636

Biotechnology

-

.08

%

BeOne

Medicines

Ltd

(d) 20,500

Structure

Therapeutics

Inc

ADR

(d) 5,862

$

880

Building

Materials

-

.57

%

Cemex

SAB

de

CV

594,014

682

JSW

Cement

Ltd

(c),(d)

114,140

UltraTech

Cement

Ltd

6,365

835

Voltas

Ltd

28,058

$

2,093

Commercial

Services

-

.90

%

JSW

Infrastructure

Ltd

232,354

737

Computers

-

.20

%

Elm

Co

1,219

Globant

SA

(d) 11,194

732

$

975

Diversified

Financial

Services

-

.45

%

Bajaj

Finance

Ltd

52,825

581

Banco

BTG

Pactual

SA

104,612

1,004

Hong

Kong

Exchanges

&

Clearing

Ltd

23,500

1,229

$

2,814

Electric

-

.15

%

Emirates

Central

Cooling

Systems

Corp

292,408

Electrical

Components

&

Equipment

-

.64

%

Delta

Electronics

Inc

44,000

1,342

Electronics

-

.41

%

Avalon

Technologies

Ltd

(c),(d)

3,654

E

Ink

Holdings

Inc

99,000

622

Voltronic

Power

Technology

Corp

16,000

$

1,150

Engineering

&

Construction

-

.54

%

Cury

Construtora

e

Incorporadora

SA

74,300

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Food

-

.76

%

Bid

Corp

Ltd

16,422

$

LT

Foods

Ltd

45,654

$

617

Forest

Products

&

Paper

-

.83

%

Suzano

SA

72,500

681

Healthcare

-

Products

-

.54

%

Jiangsu

Yuyue

Medical

Equipment

&

Supply

Co

Ltd

80,200

Healthcare

-

Services

-

.03

%

Dr

Sulaiman

Al

Habib

Medical

Services

Group

Co

12,253

840

Home

Furnishings

-

.63

%

Anker

Innovations

Technology

Co

Ltd

31,395

515

Insurance

-

.41

%

AIA

Group

Ltd

193,600

1,993

Bupa

Arabia

for

Cooperative

Insurance

Co

21,375

792

Max

Financial

Services

Ltd

(d) 43,672

813

$

3,598

Internet

-

.64

%

Alibaba

Group

Holding

Ltd

137,492

2,525

Grab

Holdings

Ltd

(d) 166,364

830

Meituan

(c),(d)

33,020

MercadoLibre

Inc

(d) 510

1,027

Tencent

Holdings

Ltd

66,000

5,065

Trip.com

Group

Ltd

17,413

1,249

$

11,134

Iron

&

Steel

-

.00

%

Severstal

PAO

(d) 9,865

—

Lodging

-

.55

%

Atour

Lifestyle

Holdings

Ltd

ADR

10,599

H

World

Group

Ltd

176,200

833

Indian

Hotels

Co

Ltd/The

100,991

831

$

2,082

Machinery

-

Diversified

-

.91

%

WEG

SA

84,300

746

Metal

Fabrication

&

Hardware

-

.76

%

APL

Apollo

Tubes

Ltd

28,919

616

Mining

-

.23

%

Anglogold

Ashanti

Plc

7,720

665

Capstone

Copper

Corp

(d) 57,500

577

Impala

Platinum

Holdings

Ltd

69,577

1,094

Ivanhoe

Mines

Ltd

(d) 26,500

Polyus

PJSC

(d) 1,080

—

$

2,637

Miscellaneous

Manufacturers

-

.38

%

Escorts

Kubota

Ltd

7,548

Oil

&

Gas

-

.21

%

ADNOC

Drilling

Co

PJSC

419,243

609

PRIO

SA/Brazil

(d) 36,600

Reliance

Industries

Ltd

98,928

1,731

$

2,617

Pharmaceuticals

-

.42

%

Caplin

Point

Laboratories

Ltd

10,533

Hansoh

Pharmaceutical

Group

Co

Ltd

(c) 88,000

Richter

Gedeon

Nyrt

13,909

Simcere

Pharmaceutical

Group

Ltd

(c) 73,000

$

1,156

Pipelines

-

.74

%

Gaztransport

Et

Technigaz

SA

3,275

601

Real

Estate

-

.46

%

China

Resources

Land

Ltd

107,500

Retail

-

.86

%

CP

ALL

PCL

222,100

Jumbo

SA

19,867

651

Yum

China

Holdings

Inc

29,100

1,378

$

2,334

Schedule

of

Investments

Global

Emerging

Markets

Account

December

31,

2025

See

accompanying

notes.

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Semiconductors

-

.64

%

ASML

Holding

NV

-

NY

Reg

Shares

556

$

595

MediaTek

Inc

10,000

Samsung

Electronics

Co

Ltd

49,896

4,182

SK

hynix

Inc

4,486

2,031

Taiwan

Semiconductor

Manufacturing

Co

Ltd

228,164

11,216

$

18,478

Software

-

.23

%

NetEase

Inc

36,400

1,002

Telecommunications

-

.92

%

Accton

Technology

Corp

19,000

717

Xiaomi

Corp

(c),(d)

168,200

849

$

1,566

Water

-

.97

%

Cia

de

Saneamento

Basico

do

Estado

de

Sao

Paulo

SABESP

32,639

795

TOTAL

COMMON

STOCKS

$

80,248

PREFERRED

STOCKS

-

.53

%

Shares

Held

Value

(000's)

Automobile

Manufacturers

-

.38

%

Hyundai

Motor

Co

13,600.00%

2,130

$

Oil

&

Gas

-

.15

%

Petroleo

Brasileiro

SA

-

Petrobras

1.19%

166,800

938

TOTAL

PREFERRED

STOCKS

$

1,252

Total

Investments

$

81,834

Other

Assets

and

Liabilities

- (0.28)%

(229)

TOTAL

NET

ASSETS

-

100.00%

$

81,605

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b) 1-day

yield

shown

is

as

of

period

end.

(c) Security

exempt

from

registration

under

Rule

144A

of

the

Securities

Act

of

1933. These

securities

may

be

resold

in

transactions

exempt

from

registration,

normally

to

qualified

institutional

buyers.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$2,039

or

2.50%

of

net

assets.

(d) Non-income

producing

security

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

854

$

22,404

$

22,924

$

$

854

$

22,404

$

22,924

$

Income

(a) Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

$

—

$

—

$

—

$

$

—

$

—

$

—

Amounts

in

thousands.

(a) Amount

excludes

earnings

from

securities

lending

collateral.

Schedule

of

Investments

Government

&

High

Quality

Bond

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.84

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

.84

%

Principal

Government

Money

Market

Fund

-

Class

3.67%

(a),(b)

901,112

$

901

TOTAL

INVESTMENT

COMPANIES

$

901

BONDS

-

.61

%

Principal

Amount

(000's)

Value

(000's)

Automobile

Asset

Backed

Securities

-

.32

%

BofA

Auto

Trust

2025-1

4.47%,

11/22/2027

(c) $

$

1.00 x

Day

Average

Secured

Overnight

Financing

Rate

+

0.55%

Capital

One

Prime

Auto

Receivables

Trust

2025-1

3.88%,

01/16/2029

1,140

1,141

Carmax

Auto

Owner

Trust

2024-3

5.21%,

09/15/2027

Drive

Auto

Receivables

Trust

2025-1

4.87%,

08/15/2028

GM

Financial

Automobile

Leasing

Trust

2024-3

4.39%,

01/20/2027

1.00 x

Day

Average

Secured

Overnight

Financing

Rate

+

0.47%

Mercedes-Benz

Auto

Lease

Trust

2024-A

5.44%,

02/16/2027

Santander

Drive

Auto

Receivables

Trust

2024-1

5.25%,

04/17/2028

Santander

Drive

Auto

Receivables

Trust

2025-1

4.76%,

08/16/2027

Santander

Drive

Auto

Receivables

Trust

2025-2

4.71%,

06/15/2028

Santander

Drive

Auto

Receivables

Trust

2025-3

4.63%,

10/16/2028

1,032

1,035

Santander

Drive

Auto

Receivables

Trust

2025-4

4.28%,

01/15/2029

1,365

1,368

Wheels

Fleet

Lease

Funding

LLC

4.99%,

01/18/2040

(c) 1,215

1,216

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

0.67%

$

6,767

Commercial

Mortgage

Backed

Securities

-

.65

%

BANK

2021-BNK32

0.63%,

04/15/2054

BANK5

2025-5YR19

4.60%,

12/15/2058

1,300

1,304

Benchmark

2021-B31

Mortgage

Trust

1.36%,

12/15/2054

Morgan

Stanley

Capital

I

Trust

2021-L7

0.88%,

10/15/2054

690

682

Wells

Fargo

Commercial

Mortgage

Trust

2016-BNK1

2.65%,

08/15/2049

$

2,844

Mortgage

Backed

Securities

-

.64

%

Chase

Home

Lending

Mortgage

Trust

2025-8

5.50%,

06/25/2056

(c),(d)

1,256

1,261

Chase

Home

Lending

Mortgage

Trust

Series

2025-11

5.50%,

02/25/2056

(c),(d)

EverBank

Mortgage

Loan

Trust

18-1

3.50%,

02/25/2048

(c),(d)

Fannie

Mae

Grantor

Trust

2005-T1

4.20%,

05/25/2035

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

0.46%

Fannie

Mae

Interest

Strip

3.50%,

12/25/2043

(d),(e)

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Mortgage

Backed

Securities

(continued)

Fannie

Mae

REMICS

1.96%,

06/25/2045

(e) $

752

$

1.00 x

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

0.00%

2.01%,

10/25/2049

(e) 1,838

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

5.89%

2.01%,

05/25/2050

(e) 1,908

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

5.89%

2.06%,

08/25/2049

(e) 2,822

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

5.94%

2.06%,

09/25/2049

(e) 795

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

5.94%

2.06%,

11/25/2049

(e) 1,363

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

5.94%

2.08%,

06/25/2050

(e) 1,274

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

5.96%

2.16%,

09/25/2047

(e) 2,551

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

6.04%

2.71%,

12/25/2042

(e) 967

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

6.59%

3.00%,

10/25/2040

(e) 101

3.00%,

04/25/2042

3.00%,

05/25/2048

3.00%,

01/25/2051

(e) 1,530

7.00%,

04/25/2032

Freddie

Mac

REMICS

1.50%,

04/15/2028

1.66%,

05/15/2038

(e) 601

1.00 x

Month

Treasury

Average

Index

+

0.00%

2.06%,

09/25/2049

(e) 2,418

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

5.94%

2.06%,

10/25/2049

(e) 2,089

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

5.94%

2.06%,

11/25/2049

(e) 867

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

5.94%

3.00%,

04/15/2046

Ginnie

Mae

2.25%,

06/20/2046

(e) 240

(1.00)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

5.99%

2.25%,

08/20/2047

(e) 1,595

(1.00)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

5.99%

2.29%,

12/20/2043

(e) 535

(1.00)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

6.03%

2.33%,

09/20/2050

(e) 1,082

(1.00)

x

Day

Average

Secured

Overnight

Financing

Rate

+

6.25%

2.35%,

10/20/2045

(e) 651

(1.00)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

6.09%

2.35%,

11/20/2047

(e) 477

(1.00)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

6.09%

Schedule

of

Investments

Government

&

High

Quality

Bond

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Mortgage

Backed

Securities

(continued)

Ginnie

Mae

(continued)

2.45%,

08/20/2050

(e) $

1,734

$

(1.00)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

6.19%

2.45%,

11/20/2050

(e) 1,085

(1.00)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

6.19%

2.45%,

07/20/2051

(e) 1,136

(1.00)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

6.19%

2.45%,

08/20/2051

(e) 1,412

(1.00)

x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

6.19%

3.00%,

07/20/2050

(e) 863

3.00%,

11/20/2050

(e) 1,608

3.00%,

11/20/2050

(e) 2,410

3.00%,

12/20/2050

(e) 1,005

3.50%,

10/20/2049

(e) 1,440

4.00%,

02/20/2044

(e) 325

4.00%,

04/20/2044

(e) 268

4.00%,

01/20/2046

(e) 118

J.P.

Morgan

Mortgage

Trust

2023-3

5.00%,

10/25/2053

(c),(d)

692

683

JP

Morgan

Mortgage

Trust

2016-4

3.50%,

10/25/2046

(c),(d)

JP

Morgan

Mortgage

Trust

2017-3

3.79%,

08/25/2047

(c),(d)

JP

Morgan

Mortgage

Trust

2023-10

6.00%,

05/25/2054

(c),(d)

526

527

JP

Morgan

Mortgage

Trust

2023-8

6.00%,

02/25/2054

(c),(d)

1,029

1,040

JP

Morgan

Mortgage

Trust

2024-1

6.00%,

06/25/2054

(c),(d)

New

Residential

Mortgage

Loan

Trust

2014-1

5.00%,

01/25/2054

(c),(d)

553

553

New

Residential

Mortgage

Loan

Trust

2015-2

5.26%,

08/25/2055

(c),(d)

Sequoia

Mortgage

Trust

2013-2

3.64%,

02/25/2043

(d) 56

Sequoia

Mortgage

Trust

2017-3

3.76%,

04/25/2047

(c),(d)

Sequoia

Mortgage

Trust

2023-4

5.88%,

11/25/2053

(c),(d)

Sequoia

Mortgage

Trust

2024-1

5.72%,

01/25/2054

(c),(d)

Sequoia

Mortgage

Trust

2024-5

6.00%,

06/25/2054

(c),(d)

Sequoia

Mortgage

Trust

2025-13

5.50%,

12/25/2055

(c),(d)

1,500

1,509

Sequoia

Mortgage

Trust

2025-S2

4.00%,

11/25/2055

(c),(d)

1,741

1,629

$

15,679

TOTAL

BONDS

$

25,290

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

-

.15

%

Principal

Amount

(000's)

Value

(000's)

Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

-

.02

%

3.00%,

05/01/2043

$

$

3.00%,

10/01/2046

3.50%,

02/01/2044

4.00%,

01/01/2043

4.00%,

10/01/2045

4.50%,

11/01/2043

5.00%,

02/01/2033

5.00%,

06/01/2033

5.00%,

01/01/2034

5.00%,

07/01/2035

5.00%,

07/01/2035

5.00%,

07/01/2035

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

(continued)

5.00%,

10/01/2035

$

$

5.50%,

03/01/2033

5.50%,

04/01/2038

5.50%,

05/01/2038

6.00%,

05/01/2031

6.00%,

12/01/2031

6.00%,

11/01/2033

6.00%,

09/01/2034

6.00%,

02/01/2035

6.00%,

10/01/2036

6.00%,

03/01/2037

6.00%,

01/01/2038

6.00%,

04/01/2038

6.35%,

09/01/2032

1.00 x

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

2.23%

6.50%,

10/01/2028

6.50%,

12/01/2028

6.50%,

07/01/2031

6.50%,

08/01/2031

6.50%,

10/01/2031

6.50%,

10/01/2031

6.50%,

12/01/2031

6.50%,

02/01/2032

6.50%,

05/01/2032

7.00%,

04/01/2028

7.00%,

10/01/2031

7.00%,

10/01/2031

7.00%,

04/01/2032

7.50%,

10/01/2030

7.50%,

02/01/2031

8.00%,

10/01/2030

8.50%,

07/01/2029

$

2,162

Federal

National

Mortgage

Association

(FNMA)

-

.12

%

5.50%,

05/01/2033

6.00%,

05/01/2037

6.11%,

12/01/2033

1.00 x

Refinitiv

USD

IBOR

Consumer

Cash

Fallback

12-Month

+

1.70%

6.50%,

11/01/2032

6.52%,

12/01/2032

1.00 x

Refinitiv

USD

IBOR

Consumer

Cash

Fallback

12-Month

+

1.64%

7.00%,

08/01/2028

7.00%,

12/01/2028

$

Federal

National

Mortgage

Association

(FNMA)/Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

Uniform

Mortgage-Backed

Security

-

.07

%

2.00%,

10/01/2050

667

550

2.00%,

11/01/2051

1,484

1,221

2.00%,

11/01/2051

1,168

948

2.00%,

12/01/2051

2,277

1,869

2.00%,

12/01/2051

2,272

1,873

2.00%,

01/01/2052

1,471

1,208

2.00%,

01/01/2052

1,829

1,509

2.00%,

03/01/2052

1,556

1,268

2.50%,

02/01/2051

2,108

1,827

2.50%,

07/01/2051

2,739

2,362

2.50%,

12/01/2051

1,855

1,619

2.50%,

04/01/2052

2,135

1,854

3.00%,

10/01/2042

580

536

3.00%,

10/01/2046

3.00%,

11/01/2046

768

697

3.00%,

01/01/2050

758

678

3.00%,

08/01/2050

550

3.00%,

09/01/2050

890

796

3.00%,

06/01/2052

1,531

1,360

Schedule

of

Investments

Government

&

High

Quality

Bond

Account

December

31,

2025

See

accompanying

notes.

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

Federal

National

Mortgage

Association

(FNMA)/Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

Uniform

Mortgage-Backed

Security

(continued)

3.50%,

11/01/2042

$

$

3.50%,

02/01/2043

3.50%,

03/01/2045

3.50%,

11/01/2048

853

811

3.50%,

08/01/2050

709

670

3.50%,

04/01/2052

1,105

1,029

4.00%,

02/01/2041

4.00%,

08/01/2044

4.00%,

10/01/2044

567

552

4.00%,

11/01/2044

4.00%,

08/01/2045

4.00%,

08/01/2046

4.00%,

07/01/2047

4.00%,

07/01/2052

4.50%,

08/01/2039

502

4.50%,

10/01/2043

4.50%,

09/01/2045

4.50%,

10/01/2045

4.50%,

11/01/2045

527

527

4.50%,

08/01/2052

775

763

4.50%,

10/01/2052

695

681

4.50%,

01/01/2054

739

729

5.00%,

05/01/2033

5.00%,

04/01/2035

5.00%,

04/01/2035

5.00%,

07/01/2035

5.00%,

02/01/2038

5.00%,

02/01/2040

5.00%,

07/01/2041

5.00%,

09/01/2052

715

721

5.00%,

04/01/2053

1,593

1,598

5.00%,

04/01/2053

1,761

1,764

5.00%,

06/01/2053

1,881

1,885

5.00%,

11/01/2054

771

769

5.00%,

11/01/2054

908

914

5.00%,

01/01/2055

667

670

5.00%,

02/01/2055

5.50%,

06/01/2033

5.50%,

03/01/2038

5.50%,

07/01/2053

843

864

5.50%,

11/01/2053

832

854

5.50%,

11/01/2053

1,007

1,031

5.50%,

03/01/2054

664

676

5.50%,

05/01/2054

751

770

5.50%,

10/01/2054

1,215

1,246

5.50%,

02/01/2055

1,631

1,666

5.50%,

04/01/2055

710

727

5.50%,

06/01/2055

5.50%,

08/01/2055

740

757

5.50%,

08/01/2055

793

808

5.50%,

01/01/2056

(f) 400

6.00%,

11/01/2028

6.00%,

12/01/2031

6.00%,

01/01/2033

6.00%,

07/01/2037

6.00%,

11/01/2037

6.00%,

03/01/2038

6.00%,

04/01/2054

800

834

6.00%,

05/01/2054

750

781

6.00%,

06/01/2054

559

582

6.00%,

09/01/2054

545

567

6.00%,

09/01/2054

932

969

6.00%,

11/01/2054

919

955

6.50%,

03/01/2029

6.50%,

06/01/2031

6.50%,

08/01/2032

6.50%,

02/01/2033

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

Federal

National

Mortgage

Association

(FNMA)/Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

Uniform

Mortgage-Backed

Security

(continued)

6.50%,

12/01/2036

$

$

6.50%,

07/01/2037

6.50%,

02/01/2038

6.50%,

10/01/2053

691

726

6.50%,

05/01/2054

532

556

6.50%,

04/01/2055

7.00%,

10/01/2029

7.00%,

05/01/2031

7.00%,

11/01/2031

$

60,064

Government

National

Mortgage

Association

(GNMA)

-

.98

%

2.00%,

01/20/2051

1,237

1,025

2.00%,

02/20/2051

2.50%,

06/20/2050

1,925

1,664

3.00%,

02/20/2047

3.50%,

06/20/2043

3.50%,

06/20/2046

4.00%,

07/20/2047

4.00%,

04/20/2052

694

661

4.50%,

08/20/2048

793

787

4.50%,

05/20/2052

922

905

4.50%,

06/20/2053

512

501

4.50%,

01/20/2056

(f) 2,525

2,460

5.00%,

12/20/2052

2,002

2,006

5.00%,

05/20/2053

948

948

5.00%,

09/20/2053

798

799

5.00%,

10/20/2053

814

816

5.00%,

02/20/2054

5.00%,

01/20/2056

(f) 3,535

3,527

5.50%,

11/15/2033

5.50%,

05/20/2035

5.50%,

06/20/2053

735

746

5.50%,

08/20/2053

666

676

5.50%,

04/20/2054

1,361

1,379

6.00%,

06/20/2028

6.00%,

07/20/2028

6.00%,

02/20/2029

6.00%,

03/20/2029

6.00%,

07/20/2029

6.00%,

07/20/2033

6.00%,

04/20/2054

830

847

6.50%,

03/20/2031

6.50%,

04/20/2031

7.00%,

01/15/2028

7.00%,

03/15/2028

7.00%,

01/15/2029

7.00%,

03/15/2029

7.00%,

05/15/2031

7.00%,

09/15/2031

7.00%,

06/15/2032

$

21,405

U.S.

Treasury

Bill

-

.96

%

3.62%,

01/22/2026

(g) 3,175

3,170

TOTAL

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

$

86,923

Total

Investments

$

113,114

Other

Assets

and

Liabilities

- (5.60)%

(5,997)

TOTAL

NET

ASSETS

-

100.00%

$

107,117

Schedule

of

Investments

Government

&

High

Quality

Bond

Account

December

31,

2025

See

accompanying

notes.

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b) 1-day

yield

shown

is

as

of

period

end.

(c) Security

exempt

from

registration

under

Rule

144A

of

the

Securities

Act

of

1933. These

securities

may

be

resold

in

transactions

exempt

from

registration,

normally

to

qualified

institutional

buyers.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$11,441

or

10.68%

of

net

assets.

(d) Certain

variable

rate

securities

are

not

based

on

a

published

reference

rate

and

spread

but

are

determined

by

the

issuer

or

agent

and

are

based

on

current

market

conditions. These

securities

do

not

indicate

a

reference

rate

and

spread

in

their

description.

Rate

shown

is

the

rate

in

effect

as

of

period

end.

(e) Security

is

an

Interest

Only

Strip.

(f) Security

was

purchased

in

a

"to-be-announced"

("TBA")

transaction.

(g) Rate

shown

is

the

discount

rate

of

the

original

purchase.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

2,761

$

57,904

$

59,764

$

901

$

2,761

$

57,904

$

59,764

$

901

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

$

—

$

—

$

—

$

$

—

$

—

$

—

Amounts

in

thousands.

Futures

Contracts

Description

and

Expiration

Date

Type

Contracts

Notional

Amount

Value

and

Unrealized

Appreciation/(Depreciation)

US

Year

Treasury

Note;

March

2026

Short

$

5,637

$

(4)

US

Year

Treasury Note;

March

2026

Short

1,968

—

US

Long

Bond;

March

2026

Long

2,774

(20)

Total

$

(24)

Amounts

in

thousands

except

contracts.

Schedule

of

Investments

LargeCap

Growth

Account

I

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.02

%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

.24

%

iShares

Russell

1000

Growth

ETF

3,200

$

1,514

Money

Market

Funds

-

.78

%

BlackRock

Liquidity

FedFund

-

Institutional

Class

3.64%

(a),(b)

76,675

Principal

Government

Money

Market

Fund

-

Class

3.67%

(a),(c)

17,063,388

17,063

$

17,140

TOTAL

INVESTMENT

COMPANIES

$

18,654

CONVERTIBLE

PREFERRED

STOCKS

-

.13

%

Shares

Held

Value

(000's)

Automobile

Manufacturers

-

.06

%

Waymo

LLC

Series

0.00%

(d),(e),(f)

2,489

$

Chemicals

-

.01

%

Sila

Nano

Series

F

0.00%

(d),(e),(f)

4,929

Software

-

.06

%

Nuro

-

Series

C

0.00%

(d),(e),(f)

17,442

Rappi

Inc

-

Series

E

0.00%

(d),(e),(f)

5,133

$

TOTAL

CONVERTIBLE

PREFERRED

STOCKS

$

814

COMMON

STOCKS

-

.85

%

Shares

Held

Value

(000's)

Advertising

-

.34

%

Trade

Desk

Inc/The

(d) 55,256

$

2,098

Aerospace

&

Defense

-

.22

%

Boeing

Co/The

(d) 14,920

3,240

FTAI

Aviation

Ltd

General

Electric

Co

2,293

706

HEICO

Corp

HEICO

Corp

-

Class

A

Howmet

Aerospace

Inc

27,520

5,642

Karman

Holdings

Inc

(d) 118

Leonardo

DRS

Inc

Loar

Holdings

Inc

(d) 94

Lockheed

Martin

Corp

Rocket

Lab

Corp

(d) 911

StandardAero

Inc

(d) 37

TransDigm

Group

Inc

2,919

3,882

$

13,728

Agriculture

-

.00

%

Darling

Ingredients

Inc

(d) 50

Airlines

-

.00

%

Alaska

Air

Group

Inc

(d) 47

American

Airlines

Group

Inc

(d) 108

Southwest

Airlines

Co

$

Apparel

-

.02

%

Birkenstock

Holding

Plc

(d) 46

Deckers

Outdoor

Corp

(d) 319

On

Holding

AG

(d) 491

Ralph

Lauren

Corp

Tapestry

Inc

$

Automobile

Manufacturers

-

.41

%

Tesla

Inc

(d) 5,620

2,527

Automobile

Parts

&

Equipment

-

.00

%

Allison

Transmission

Holdings

Inc

Banks

-

.05

%

Bank

of

America

Corp

1,164

Bank

of

New

York

Mellon

Corp/The

Citigroup

Inc

698

Goldman

Sachs

Group

Inc/The

NU

Holdings

Ltd/Cayman

Islands

(d) 7,353

Popular

Inc

Steel

Newco

Inc

Western

Alliance

Bancorp

$

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Beverages

-

.08

%

Celsius

Holdings

Inc

(d) 361

$

Coca-Cola

Co/The

4,189

Coca-Cola

Consolidated

Inc

Monster

Beverage

Corp

(d) 1,538

PepsiCo

Inc

$

Biotechnology

-

.64

%

Alnylam

Pharmaceuticals

Inc

(d) 278

Amgen

Inc

874

Apellis

Pharmaceuticals

Inc

(d) 259

Argenx

SE

ADR

(d) 3,643

3,064

Exelixis

Inc

(d) 469

Gilead

Sciences

Inc

738

Halozyme

Therapeutics

Inc

(d) 258

Incyte

Corp

(d) 91

Insmed

Inc

(d) 432

Ionis

Pharmaceuticals

Inc

(d) 323

Sarepta

Therapeutics

Inc

(d) 171

Summit

Therapeutics

Inc

(d) 281

Ultragenyx

Pharmaceutical

Inc

(d) 229

Vertex

Pharmaceuticals

Inc

(d) 567

Viking

Therapeutics

Inc

(d) 31

$

3,977

Building

Materials

-

.70

%

AAON

Inc

Armstrong

World

Industries

Inc

Carlisle

Cos

Inc

Eagle

Materials

Inc

James

Hardie

Industries

PLC

(d) 224

Lennox

International

Inc

Simpson

Manufacturing

Co

Inc

Trane

Technologies

PLC

10,894

4,240

$

4,302

Chemicals

-

.03

%

Ecolab

Inc

Sherwin-Williams

Co/The

$

Commercial

Services

-

.38

%

Adyen

NV

ADR

(d) 141,783

2,264

Affirm

Holdings

Inc

(d) 360

Automatic

Data

Processing

Inc

832

Avis

Budget

Group

Inc

(d),(g)

Block

Inc

(d) 141,488

9,209

Booz

Allen

Hamilton

Holding

Corp

Bright

Horizons

Family

Solutions

Inc

(d) 22

Cintas

Corp

23,421

4,405

Corpay

Inc

(d) 149

Equifax

Inc

4,913

1,066

Grand

Canyon

Education

Inc

(d) 19

H&R

Block

Inc

Moody's

Corp

Morningstar

Inc

NIQ

Global

Intelligence

Plc

(d),(g)

Paylocity

Holding

Corp

(d) 85

Quanta

Services

Inc

Rollins

Inc

618

S&P

Global

Inc

6,034

3,153

Shift4

Payments

Inc

(d),(g)

Toast

Inc

(d) 1,018

U-Haul

Holding

Co

(d) 11

U-Haul

Holding

Co

Valvoline

Inc

(d) 249

Verisk

Analytics

Inc

WEX

Inc

(d) 10

WillScot

Holdings

Corp

$

20,856

Schedule

of

Investments

LargeCap

Growth

Account

I

December

31,

2025

See

accompanying

notes.

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Computers

-

.89

%

Apple

Inc

154,393

$

41,974

Crowdstrike

Holdings

Inc

(d) 544

Dell

Technologies

Inc

ExlService

Holdings

Inc

(d) 332

Figure

Technology

Solutions

Inc

(d),(g)

Fortinet

Inc

(d) 1,402

Gartner

Inc

(d) 162

Globant

SA

(d) 13

KBR

Inc

Kyndryl

Holdings

Inc

(d) 43

Lumentum

Holdings

Inc

(d) 12

NetApp

Inc

Okta

Inc

(d) 145

Pure

Storage

Inc

(d) 586

Rubrik

Inc

(d) 175

Super

Micro

Computer

Inc

(d) 514

Zscaler

Inc

(d) 219

$

42,563

Consumer

Products

-

.00

%

Kimberly-Clark

Corp

Cosmetics

&

Personal

Care

-

.01

%

Colgate-Palmolive

Co

839

Distribution

&

Wholesale

-

.04

%

Copart

Inc

(d) 1,813

Core

&

Main

Inc

(d) 246

Fastenal

Co

2,076

Pool

Corp

RB

Global

Inc

SiteOne

Landscape

Supply

Inc

(d) 35

WW

Grainger

Inc

$

Diversified

Financial

Services

-

.63

%

Ally

Financial

Inc

American

Express

Co

Ameriprise

Financial

Inc

Apollo

Global

Management

Inc

632

Ares

Management

Corp

5,284

854

Blue

Owl

Capital

Inc

(g) 1,378

Brookfield

Asset

Management

Ltd

Charles

Schwab

Corp/The

Circle

Internet

Group

Inc

(d) 19

Coinbase

Global

Inc

(d) 50

Credit

Acceptance

Corp

(d) 1

—

Freedom

Holding

Corp/NV

(d),(g)

Hamilton

Lane

Inc

Houlihan

Lokey

Inc

Interactive

Brokers

Group

Inc

-

A

Shares

Jefferies

Financial

Group

Inc

Lazard

Inc

LPL

Financial

Holdings

Inc

Mastercard

Inc

32,168

18,364

Rocket

Cos

Inc

50,894

985

SLM

Corp

SoFi

Technologies

Inc

(d) 388

TPG

Inc

Tradeweb

Markets

Inc

27,833

2,993

UWM

Holdings

Corp

—

Visa

Inc

31,512

11,051

XP

Inc

$

34,787

Electric

-

.03

%

NRG

Energy

Inc

Vistra

Corp

745

$

Electrical

Components

&

Equipment

-

.60

%

Generac

Holdings

Inc

(d) 27,257

3,717

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Electronics

-

.58

%

Amphenol

Corp

71,684

$

9,687

Jabil

Inc

$

9,722

Energy

-

Alternate

Sources

-

.00

%

Enphase

Energy

Inc

(d) 281

Engineering

&

Construction

-

.02

%

Comfort

Systems

USA

Inc

EMCOR

Group

Inc

MasTec

Inc

(d) 29

TopBuild

Corp

(d) 5

$

Entertainment

-

.55

%

Churchill

Downs

Inc

DraftKings

Inc

(d) 94,671

3,263

Flutter

Entertainment

PLC

(d) 288

Live

Nation

Entertainment

Inc

(d) 348

TKO

Group

Holdings

Inc

Vail

Resorts

Inc

$

3,410

Environmental

Control

-

.55

%

Tetra

Tech

Inc

Veralto

Corp

31,879

3,181

Waste

Management

Inc

815

$

3,364

Food

-

.01

%

Hershey

Co/The

Performance

Food

Group

Co

(d) 46

Sprouts

Farmers

Market

Inc

(d) 215

Sysco

Corp

565

$

Healthcare

-

Products

-

.83

%

Boston

Scientific

Corp

(d) 560

Caris

Life

Sciences

Inc

(d) 30

Danaher

Corp

34,312

7,855

Exact

Sciences

Corp

(d) 23

IDEXX

Laboratories

Inc

(d) 176

Inspire

Medical

Systems

Inc

(d) 60

Insulet

Corp

(d) 154

Intuitive

Surgical

Inc

(d) 27,434

15,538

Masimo

Corp

(d) 95

Natera

Inc

(d) 16,237

3,719

Penumbra

Inc

(d) 81

Repligen

Corp

(d) 15

ResMed

Inc

Stryker

Corp

12,993

4,567

Tempus

AI

Inc

(d) 211

Waters

Corp

(d) 68

West

Pharmaceutical

Services

Inc

14,505

3,991

$

35,991

Healthcare

-

Services

-

.09

%

Chemed

Corp

Cigna

Group/The

5,298

1,458

DaVita

Inc

(d) 83

HCA

Healthcare

Inc

Medpace

Holdings

Inc

(d) 48

Molina

Healthcare

Inc

(d) 62

Sotera

Health

Co

(d) 43

UnitedHealth

Group

Inc

15,778

5,208

$

6,750

Home

Furnishings

-

.01

%

SharkNinja

Inc

(d) 35

Somnigroup

International

Inc

$

Insurance

-

.86

%

Aon

PLC

Arthur

J

Gallagher

&

Co

Brown

&

Brown

Inc

Equitable

Holdings

Inc

662

Schedule

of

Investments

LargeCap

Growth

Account

I

December

31,

2025

See

accompanying

notes.

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Insurance

(continued)

Everest

Group

Ltd

$

Kinsale

Capital

Group

Inc

Markel

Group

Inc

(d) 6

Marsh

&

McLennan

Cos

Inc

Progressive

Corp/The

22,043

5,019

RLI

Corp

Ryan

Specialty

Holdings

Inc

$

5,289

Internet

-

.53

%

Airbnb

Inc

(d) 936

Alphabet

Inc

-

A

Shares

95,890

30,014

Alphabet

Inc

-

C

Shares

27,005

8,474

Amazon.com

Inc

(d) 117,999

27,236

AppLovin

Corp

(d) 5,481

3,693

Booking

Holdings

Inc

908

4,863

CDW

Corp/DE

Chewy

Inc

(d) 478

Coupang

Inc

(d) 98,591

2,326

DoorDash

Inc

-

Class

A

(d) 13,464

3,049

Etsy

Inc

(d) 125

Expedia

Group

Inc

Gen

Digital

Inc

GoDaddy

Inc

(d) 295

Lyft

Inc

(d) 145

MercadoLibre

Inc

(d) 1,930

3,887

Meta

Platforms

Inc

34,183

22,564

Netflix

Inc

(d) 121,478

11,389

Palo

Alto

Networks

Inc

(d) 1,480

Pinterest

Inc

(d) 639

Reddit

Inc

(d) 273

Robinhood

Markets

Inc

(d) 217

Roku

Inc

(d) 41

Shopify

Inc

(d) 15,977

2,572

Spotify

Technology

SA

(d) 339

Trump

Media

&

Technology

Group

Corp

(d) 218

Uber

Technologies

Inc

(d) 71,273

5,824

Wayfair

Inc

(d) 38

$

126,746

Iron

&

Steel

-

.00

%

Carpenter

Technology

Corp

Steel

Dynamics

Inc

$

Leisure

Products

&

Services

-

.04

%

Carnival

Corp

730

Norwegian

Cruise

Line

Holdings

Ltd

(d) 881

Planet

Fitness

Inc

(d) 184

Royal

Caribbean

Cruises

Ltd

557

Viking

Holdings

Ltd

(d) 383

$

Lodging

-

.30

%

Choice

Hotels

International

Inc

(g) 24

Hilton

Worldwide

Holdings

Inc

27,357

7,858

Las

Vegas

Sands

Corp

674

Marriott

International

Inc/MD

Travel

+

Leisure

Co

Wyndham

Hotels

&

Resorts

Inc

$

8,036

Machinery

-

Construction

&

Mining

-

.10

%

BWX

Technologies

Inc

Caterpillar

Inc

GE

Vernova

Inc

603

Vertiv

Holdings

Co

838

$

608

Machinery

-

Diversified

-

.31

%

Ingersoll

Rand

Inc

24,065

1,907

Rockwell

Automation

Inc

$

1,915

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Media

-

.00

%

FactSet

Research

Systems

Inc

$

Liberty

Broadband

Corp

-

A

Shares

(d) 12

Liberty

Broadband

Corp

-

C

Shares

(d) 57

Liberty

Media

Corp-Liberty

Formula

One

-

A

Shares

(d) 21

Liberty

Media

Corp-Liberty

Formula

One

-

C

Shares

(d) 145

Nexstar

Media

Group

Inc

$

Metal

Fabrication

&

Hardware

-

.00

%

RBC

Bearings

Inc

(d) 15

Mining

-

.00

%

Anglogold

Ashanti

Plc

Miscellaneous

Manufacturers

-

.97

%

3M

Co

Axon

Enterprise

Inc

(d) 164

Entegris

Inc

41,845

3,526

Fabrinet

(d) 5,045

2,297

Illinois

Tool

Works

Inc

$

5,997

Oil

&

Gas

-

.01

%

HF

Sinclair

Corp

Phillips

Texas

Pacific

Land

Corp

$

Oil

&

Gas

Services

-

.00

%

SLB

Ltd

Pharmaceuticals

-

.93

%

AbbVie

Inc

3,905

892

Bristol-Myers

Squibb

Co

864

Cardinal

Health

Inc

Cencora

Inc

Corcept

Therapeutics

Inc

(d) 206

Dexcom

Inc

(d) 861

Eli

Lilly

&

Co

9,639

10,359

McKesson

Corp

Neurocrine

Biosciences

Inc

(d) 181

Zoetis

Inc

784

$

11,886

Pipelines

-

.02

%

Cheniere

Energy

Inc

Targa

Resources

Corp

Williams

Cos

Inc/The

$

Private

Equity

-

.05

%

Blackstone

Inc

1,635

KKR

&

Co

Inc

$

Real

Estate

-

.60

%

CBRE

Group

Inc

(d) 73

CoStar

Group

Inc

(d) 54,636

3,673

Jones

Lang

LaSalle

Inc

(d) 29

$

3,695

REITs

-

.04

%

American

Tower

Corp

1,031

Lamar

Advertising

Co

Public

Storage

Simon

Property

Group

Inc

Sun

Communities

Inc

UDR

Inc

$

Retail

-

.73

%

AutoZone

Inc

(d) 6

BJ's

Wholesale

Club

Holdings

Inc

(d) 47

Burlington

Stores

Inc

(d) 138

Carvana

Co

(d) 297

Casey's

General

Stores

Inc

Cava

Group

Inc

(d) 210

Schedule

of

Investments

LargeCap

Growth

Account

I

December

31,

2025

See

accompanying

notes.

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Retail

(continued)

Chipotle

Mexican

Grill

Inc

(d) 67,506

$

2,497

Costco

Wholesale

Corp

7,607

6,560

Darden

Restaurants

Inc

Domino's

Pizza

Inc

Dutch

Bros

Inc

(d) 258

Ferguson

Enterprises

Inc

Floor

&

Decor

Holdings

Inc

(d) 81

Freshpet

Inc

(d) 39

Home

Depot

Inc/The

1,672

575

Lithia

Motors

Inc

Lululemon

Athletica

Inc

(d) 131

McDonald's

Corp

Murphy

USA

Inc

O'Reilly

Automotive

Inc

(d) 1,706

Restaurant

Brands

International

Inc

RH

(d) 8

Ross

Stores

Inc

Starbucks

Corp

Texas

Roadhouse

Inc

TJX

Cos

Inc/The

1,232

Tractor

Supply

Co

1,171

Ulta

Beauty

Inc

(d) 24

Walmart

Inc

958

Wendy's

Co/The

Williams-Sonoma

Inc

Wingstop

Inc

Yum!

Brands

Inc

$

10,684

Semiconductors

-

.47

%

Advanced

Micro

Devices

Inc

(d) 4,456

955

Applied

Materials

Inc

501

Astera

Labs

Inc

(d) 277

Broadcom

Inc

86,444

29,919

KLA

Corp

Lam

Research

Corp

2,768

Lattice

Semiconductor

Corp

(d) 40,238

2,961

MACOM

Technology

Solutions

Holdings

Inc

(d) 38

Marvell

Technology

Inc

62,145

5,281

Monolithic

Power

Systems

Inc

NVIDIA

Corp

318,949

59,484

Onto

Innovation

Inc

(d) 26

QUALCOMM

Inc

543

Texas

Instruments

Inc

819

Tower

Semiconductor

Ltd

(d) 14,814

1,739

$

101,677

Software

-

.85

%

Adobe

Inc

(d) 921

Appfolio

Inc

(d) 49

Atlassian

Corp

(d) 364

Autodesk

Inc

(d) 16,668

4,934

Bentley

Systems

Inc

Broadridge

Financial

Solutions

Inc

Bullish

(d),(g)

Cadence

Design

Systems

Inc

(d) 13,456

4,206

Cloudflare

Inc

(d) 690

Confluent

Inc

(d) 631

Datadog

Inc

(d) 51,147

6,956

Dayforce

Inc

(d) 32

Docusign

Inc

(d) 334

DoubleVerify

Holdings

Inc

(d) 191

Doximity

Inc

(d) 297

Dropbox

Inc

-

A

Shares

(d) 107

Duolingo

Inc

(d) 82

Dynatrace

Inc

(d) 646

Elastic

NV

(d) 202

Fair

Isaac

Corp

(d) 2,956

4,998

Fiserv

Inc

(d) 325

Gitlab

Inc

(d) 305

Guidewire

Software

Inc

(d) 186

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Software

(continued)

HubSpot

Inc

(d) 13,133

$

5,270

Intuit

Inc

23,818

15,778

Magic

Leap

Inc

(d),(e),(f)

—

Manhattan

Associates

Inc

(d) 131

Microsoft

Corp

120,258

58,160

MongoDB

Inc

(d) 6,517

2,735

MSCI

Inc

nCino

Inc

(d) 44

Nutanix

Inc

(d) 150

Oracle

Corp

3,711

723

Palantir

Technologies

Inc

(d) 4,816

856

Paychex

Inc

Paycom

Software

Inc

Pegasystems

Inc

Procore

Technologies

Inc

(d) 252

PTC

Inc

(d) 31

RingCentral

Inc

(d) 177

ROBLOX

Corp

(d) 1,367

Salesforce

Inc

Samsara

Inc

(d) 116,202

4,119

SentinelOne

Inc

(d) 493

ServiceNow

Inc

(d) 61,569

9,432

Snowflake

Inc

-

Class

A

(d) 723

Strategy

Inc

(d),(g)

Stripe

Inc

-

Class

B

(d),(e),(f)

5,754

Synopsys

Inc

(d) 298

Take-Two

Interactive

Software

Inc

(d) 135

Teradata

Corp

(d) 64

Twilio

Inc

(d) 58

Tyler

Technologies

Inc

(d) 78

Unity

Software

Inc

(d) 54

Veeva

Systems

Inc

(d) 11,479

2,563

Workday

Inc

(d) 474

$

122,563

Telecommunications

-

.32

%

Arista

Networks

Inc

(d) 45,704

5,989

AST

SpaceMobile

Inc

(d),(g)

Ciena

Corp

(d) 8,683

2,031

GCI

Liberty

Inc

-

Class

A

(d) 2

—

GCI

Liberty

Inc

-

Class

C

(d) 19

Iridium

Communications

Inc

—

Motorola

Solutions

Inc

Ubiquiti

Inc

$

8,117

Transportation

-

.01

%

Old

Dominion

Freight

Line

Inc

Union

Pacific

Corp

XPO

Inc

(d) 57

$

TOTAL

COMMON

STOCKS

$

597,965

Total

Investments

$

617,433

Other

Assets

and

Liabilities

- 0.00%

(19)

TOTAL

NET

ASSETS

-

100.00%

$

617,414

(a) 1-day

yield

shown

is

as

of

period

end.

(b) Security

or

a

portion

of

the

security

was

received

as

collateral

for

securities

lending.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$77

or

0.01%

of

net

assets.

(c) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(d) Non-income

producing

security

(e) The

value

of

these

investments

was

determined

using

significant

unobservable

inputs,

in

good

faith

by

the

Manager,

under

procedures

established

and

periodically

reviewed

by

the

Board

of

Directors.

Schedule

of

Investments

LargeCap

Growth

Account

I

December

31,

2025

See

accompanying

notes.

(f) Restricted

Security.

Please

see

Restricted

Securities

sub-schedule

for

additional

information.

(g) Security

or

a

portion

of

the

security

was

on

loan. At

the

end

of

the

period,

the

value

of

these

securities

totaled

$74

or

0.01%

of

net

assets.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

12,206

$

245,259

$

240,402

$

17,063

$

12,206

$

245,259

$

240,402

$

17,063

Income

(a) Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

538

$

—

$

—

$

—

$

538

$

—

$

—

$

—

Amounts

in

thousands.

(a) Amount

excludes

earnings

from

securities

lending

collateral.

Restricted

Securities

Security

Name

Acquisition

Date

Cost

Value

Percent

of

Net

Assets

Magic

Leap

Inc

01/20/2016-10/12/2017

$

$

—

0.00%

Nuro

-

Series

C

0.00%

10/30/2020

0.05%

Rappi

Inc

-

Series

E

0.00%

09/08/2020

0.01%

Sila

Nano

Series

F

0.00%

01/07/2021

0.01%

Stripe

Inc

-

Class

B

12/17/2019

0.04%

Waymo

LLC

Series

0.00%

05/08/2020

0.06%

Total

$

1,052

0.17%

Amounts

in

thousands.

Futures

Contracts

Description

and

Expiration

Date

Type

Contracts

Notional

Amount

Value

and

Unrealized

Appreciation/(Depreciation)

S&P

500

Emini;

March

2026

Long

$

4,480

$

(38)

Total

$

(38)

Amounts

in

thousands

except

contracts.

Schedule

of

Investments

LargeCap

S&P

500

Index

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.28

%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

.89

%

iShares

Core

S&P

500

ETF

31,216

$

21,381

Money

Market

Funds

-

.39

%

BlackRock

Liquidity

FedFund

-

Institutional

Class

3.64%

(a),(b)

151,936

Principal

Government

Money

Market

Fund

-

Class

3.67%

(a),(c)

9,132,570

9,133

$

9,285

TOTAL

INVESTMENT

COMPANIES

$

30,666

COMMON

STOCKS

-

.84

%

Shares

Held

Value

(000's)

Advertising

-

.07

%

Omnicom

Group

Inc

12,896

$

1,041

Trade

Desk

Inc/The

(d) 17,801

676

$

1,717

Aerospace

&

Defense

-

.05

%

Boeing

Co/The

(d) 31,654

6,873

General

Dynamics

Corp

10,248

3,450

General

Electric

Co

42,642

13,135

Howmet

Aerospace

Inc

16,254

3,332

L3Harris

Technologies

Inc

7,562

2,220

Lockheed

Martin

Corp

8,232

3,982

Northrop

Grumman

Corp

5,424

3,093

RTX

Corp

54,199

9,940

TransDigm

Group

Inc

2,277

3,028

$

49,053

Agriculture

-

.65

%

Altria

Group

Inc

67,861

3,913

Archer-Daniels-Midland

Co

19,428

1,117

Bunge

Global

SA

5,472

Philip

Morris

International

Inc

62,928

10,094

$

15,611

Airlines

-

.17

%

Delta

Air

Lines

Inc

26,222

1,820

Southwest

Airlines

Co

20,907

864

United

Airlines

Holdings

Inc

(d) 13,088

1,463

$

4,147

Apparel

-

.22

%

Deckers

Outdoor

Corp

(d) 5,892

611

NIKE

Inc

48,077

3,063

Ralph

Lauren

Corp

1,566

554

Tapestry

Inc

8,274

1,057

$

5,285

Automobile

Manufacturers

-

.57

%

Cummins

Inc

5,579

2,848

Ford

Motor

Co

158,208

2,075

General

Motors

Co

37,712

3,067

PACCAR

Inc

21,232

2,325

Tesla

Inc

(d) 113,591

51,084

$

61,399

Automobile

Parts

&

Equipment

-

.03

%

Aptiv

PLC

(d) 8,735

665

Banks

-

.66

%

Bank

of

America

Corp

271,587

14,937

Bank

of

New

York

Mellon

Corp/The

28,191

3,273

Citigroup

Inc

72,333

8,440

Citizens

Financial

Group

Inc

17,363

1,014

Fifth

Third

Bancorp

26,722

1,251

Goldman

Sachs

Group

Inc/The

12,125

10,658

Huntington

Bancshares

Inc/OH

63,556

1,103

JPMorgan

Chase

&

Co

110,048

35,460

KeyCorp

37,555

775

M&T

Bank

Corp

6,214

1,252

Morgan

Stanley

48,829

8,668

Northern

Trust

Corp

7,646

1,044

PNC

Financial

Services

Group

Inc/The

15,854

3,309

Regions

Financial

Corp

35,449

961

State

Street

Corp

11,292

1,457

Truist

Financial

Corp

51,714

2,545

US

Bancorp

62,839

3,353

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Banks

(continued)

Wells

Fargo

&

Co

126,899

$

11,827

$

111,327

Beverages

-

.00

%

Brown-Forman

Corp

-

B

Shares

7,120

Coca-Cola

Co/The

156,504

10,941

Constellation

Brands

Inc

5,699

786

Keurig

Dr

Pepper

Inc

54,921

1,538

Molson

Coors

Beverage

Co

6,845

Monster

Beverage

Corp

(d) 28,831

2,210

PepsiCo

Inc

55,275

7,933

$

23,914

Biotechnology

-

.05

%

Amgen

Inc

21,768

7,125

Biogen

Inc

(d) 5,929

1,044

Corteva

Inc

27,318

1,831

Gilead

Sciences

Inc

50,155

6,156

Incyte

Corp

(d) 6,665

658

Moderna

Inc

(d) 14,055

Regeneron

Pharmaceuticals

Inc

4,075

3,145

Vertex

Pharmaceuticals

Inc

(d) 10,257

4,650

$

25,024

Building

Materials

-

.68

%

Builders

FirstSource

Inc

(d) 4,469

Carrier

Global

Corp

32,005

1,691

CRH

PLC

27,095

3,381

Johnson

Controls

International

plc

24,706

2,958

Lennox

International

Inc

1,291

627

Martin

Marietta

Materials

Inc

2,438

1,518

Masco

Corp

8,397

533

Trane

Technologies

PLC

8,964

3,489

Vulcan

Materials

Co

5,342

1,524

$

16,181

Chemicals

-

.90

%

Air

Products

and

Chemicals

Inc

8,996

2,222

Albemarle

Corp

4,757

673

CF

Industries

Holdings

Inc

6,306

Dow

Inc

28,732

672

DuPont

de

Nemours

Inc

16,936

681

Ecolab

Inc

10,306

2,705

International

Flavors

&

Fragrances

Inc

10,353

698

Linde

PLC

18,877

8,049

LyondellBasell

Industries

NV

10,408

Mosaic

Co/The

12,834

PPG

Industries

Inc

9,072

929

Qnity

Electronics

Inc

8,466

691

Sherwin-Williams

Co/The

9,320

3,020

$

21,588

Commercial

Services

-

.23

%

Automatic

Data

Processing

Inc

16,351

4,206

Block

Inc

(d) 22,140

1,441

Cintas

Corp

13,809

2,597

Corpay

Inc

(d) 2,829

851

Equifax

Inc

4,948

1,074

Global

Payments

Inc

9,571

741

Moody's

Corp

6,203

3,169

PayPal

Holdings

Inc

37,825

2,208

Quanta

Services

Inc

6,027

2,544

Rollins

Inc

11,867

712

S&P

Global

Inc

12,533

6,550

United

Rentals

Inc

2,573

2,082

Verisk

Analytics

Inc

5,635

1,260

$

29,435

Computers

-

.46

%

Accenture

PLC

-

Class

A

25,069

6,726

Apple

Inc

597,334

162,391

Cognizant

Technology

Solutions

Corp

19,512

1,620

Crowdstrike

Holdings

Inc

(d) 10,144

4,755

Dell

Technologies

Inc

12,185

1,534

Schedule

of

Investments

LargeCap

S&P

500

Index

Account

December

31,

2025

See

accompanying

notes.

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Computers

(continued)

EPAM

Systems

Inc

(d) 2,234

$

Fortinet

Inc

(d) 25,554

2,029

Gartner

Inc

(d) 2,914

735

Hewlett

Packard

Enterprise

Co

53,337

1,281

HP

Inc

37,787

842

International

Business

Machines

Corp

37,786

11,193

Leidos

Holdings

Inc

5,169

932

NetApp

Inc

8,070

864

Sandisk

Corp/DE

(d) 5,627

1,336

Seagate

Technology

Holdings

PLC

8,806

2,425

Super

Micro

Computer

Inc

(d) 20,273

593

Western

Digital

Corp

13,822

2,381

$

202,095

Consumer

Products

-

.14

%

Avery

Dennison

Corp

3,125

568

Church

&

Dwight

Co

Inc

9,708

814

Clorox

Co/The

4,932

Kimberly-Clark

Corp

13,416

1,354

$

3,233

Cosmetics

&

Personal

Care

-

.77

%

Colgate-Palmolive

Co

32,586

2,575

Estee

Lauder

Cos

Inc/The

9,939

1,041

Kenvue

Inc

77,447

1,336

Procter

&

Gamble

Co/The

(e) 94,463

13,537

$

18,489

Distribution

&

Wholesale

-

.22

%

Copart

Inc

(d) 35,994

1,409

Fastenal

Co

46,407

1,862

Pool

Corp

1,326

WW

Grainger

Inc

1,769

1,785

$

5,360

Diversified

Financial

Services

-

.93

%

American

Express

Co

21,720

8,035

Ameriprise

Financial

Inc

3,755

1,841

Apollo

Global

Management

Inc

18,770

2,717

Ares

Management

Corp

8,327

1,346

Blackrock

Inc

5,832

6,242

Capital

One

Financial

Corp

25,701

6,229

Cboe

Global

Markets

Inc

4,229

1,062

Charles

Schwab

Corp/The

67,524

6,746

CME

Group

Inc

14,576

3,980

Coinbase

Global

Inc

(d) 9,222

2,085

Franklin

Resources

Inc

12,424

Interactive

Brokers

Group

Inc

-

A

Shares

18,004

1,158

Intercontinental

Exchange

Inc

23,050

3,733

Invesco

Ltd

17,994

Mastercard

Inc

33,148

18,924

Nasdaq

Inc

18,236

1,771

Raymond

James

Financial

Inc

7,128

1,145

Synchrony

Financial

14,561

1,215

T

Rowe

Price

Group

Inc

8,823

903

Visa

Inc

68,223

23,927

$

93,829

Electric

-

.10

%

AES

Corp/The

28,793

Alliant

Energy

Corp

10,390

675

Ameren

Corp

10,934

1,092

American

Electric

Power

Co

Inc

21,637

2,495

CenterPoint

Energy

Inc

26,393

1,012

CMS

Energy

Corp

12,301

860

Consolidated

Edison

Inc

14,590

1,449

Constellation

Energy

Corp

12,625

4,460

Dominion

Energy

Inc

34,519

2,023

DTE

Energy

Co

8,395

1,083

Duke

Energy

Corp

31,438

3,685

Edison

International

15,556

934

Entergy

Corp

18,053

1,669

Evergy

Inc

9,306

675

Eversource

Energy

15,166

1,021

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Electric

(continued)

Exelon

Corp

40,841

$

1,780

FirstEnergy

Corp

21,016

941

NextEra

Energy

Inc

84,189

6,759

NRG

Energy

Inc

7,748

1,234

PG&E

Corp

88,851

1,428

Pinnacle

West

Capital

Corp

4,837

PPL

Corp

29,904

1,047

Public

Service

Enterprise

Group

Inc

20,179

1,620

Sempra

26,384

2,329

Southern

Co/The

44,511

3,881

Vistra

Corp

12,876

2,077

WEC

Energy

Group

Inc

13,149

1,387

Xcel

Energy

Inc

23,915

1,766

$

50,224

Electrical

Components

&

Equipment

-

.43

%

AMETEK

Inc

9,306

1,911

Eaton

Corp

PLC

15,702

5,001

Emerson

Electric

Co

22,712

3,014

Generac

Holdings

Inc

(d) 2,373

$

10,250

Electronics

-

.93

%

Allegion

plc

3,476

553

Amphenol

Corp

49,481

6,687

Fortive

Corp

12,840

709

Garmin

Ltd

6,610

1,341

Honeywell

International

Inc

25,666

5,007

Hubbell

Inc

2,149

954

Jabil

Inc

4,319

985

Keysight

Technologies

Inc

(d) 6,948

1,412

Mettler-Toledo

International

Inc

(d) 826

1,151

TE

Connectivity

PLC

11,893

2,706

Trimble

Inc

(d) 9,619

754

$

22,259

Energy

-

Alternate

Sources

-

.05

%

First

Solar

Inc

(d) 4,337

1,133

Engineering

&

Construction

-

.13

%

Comfort

Systems

USA

Inc

1,421

1,326

EMCOR

Group

Inc

1,810

1,108

Jacobs

Solutions

Inc

4,833

640

$

3,074

Entertainment

-

.06

%

Live

Nation

Entertainment

Inc

(d) 6,382

910

TKO

Group

Holdings

Inc

2,681

560

$

1,470

Environmental

Control

-

.28

%

Pentair

PLC

6,616

689

Republic

Services

Inc

8,135

1,724

Veralto

Corp

10,035

1,001

Waste

Management

Inc

14,984

3,292

$

6,706

Food

-

.48

%

Campbell's

Company/The

7,944

Conagra

Brands

Inc

19,338

General

Mills

Inc

21,564

1,003

Hershey

Co/The

5,989

1,090

Hormel

Foods

Corp

11,785

J

M

Smucker

Co/The

4,314

Kraft

Heinz

Co/The

34,453

836

Kroger

Co/The

24,645

1,540

Lamb

Weston

Holdings

Inc

5,635

McCormick

&

Co

Inc/MD

10,236

697

Mondelez

International

Inc

52,163

2,808

Sysco

Corp

19,357

1,426

Tyson

Foods

Inc

11,443

671

$

11,564

Forest

Products

&

Paper

-

.04

%

International

Paper

Co

21,347

841

Schedule

of

Investments

LargeCap

S&P

500

Index

Account

December

31,

2025

See

accompanying

notes.

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Gas

-

.08

%

Atmos

Energy

Corp

6,490

$

1,088

NiSource

Inc

19,290

805

$

1,893

Hand

&

Machine

Tools

-

.05

%

Snap-on

Inc

2,103

725

Stanley

Black

&

Decker

Inc

6,259

$

1,190

Healthcare

-

Products

-

.66

%

Abbott

Laboratories

70,295

8,807

Agilent

Technologies

Inc

11,460

1,559

Align

Technology

Inc

(d) 2,697

Baxter

International

Inc

20,780

Bio-Techne

Corp

6,299

Boston

Scientific

Corp

(d) 59,926

5,714

Cooper

Cos

Inc/The

(d) 8,038

659

Danaher

Corp

25,414

5,818

Edwards

Lifesciences

Corp

(d) 23,460

2,000

GE

HealthCare

Technologies

Inc

18,415

1,511

Hologic

Inc

(d) 8,996

670

IDEXX

Laboratories

Inc

(d) 3,229

2,185

Insulet

Corp

(d) 2,844

808

Intuitive

Surgical

Inc

(d) 14,331

8,117

Medtronic

PLC

51,848

4,981

ResMed

Inc

5,901

1,421

Revvity

Inc

4,584

Solventum

Corp

(d) 5,960

STERIS

PLC

3,968

1,006

Stryker

Corp

13,914

4,890

Thermo

Fisher

Scientific

Inc

15,189

8,801

Waters

Corp

(d) 2,407

914

West

Pharmaceutical

Services

Inc

2,908

800

Zimmer

Biomet

Holdings

Inc

8,010

720

$

63,486

Healthcare

-

Services

-

.16

%

Centene

Corp

(d) 18,875

777

Charles

River

Laboratories

International

Inc

(d) 1,990

Cigna

Group/The

10,797

2,972

DaVita

Inc

(d) 1,428

Elevance

Health

Inc

8,985

3,150

HCA

Healthcare

Inc

6,458

3,015

Humana

Inc

4,863

1,245

IQVIA

Holdings

Inc

(d) 6,883

1,551

Labcorp

Holdings

Inc

3,352

841

Molina

Healthcare

Inc

(d) 2,078

Quest

Diagnostics

Inc

4,498

780

UnitedHealth

Group

Inc

36,620

12,089

Universal

Health

Services

Inc

2,233

$

27,827

Home

Builders

-

.18

%

DR

Horton

Inc

11,072

1,595

Lennar

Corp

-

A

Shares

8,723

897

NVR

Inc

(d) 115

838

PulteGroup

Inc

7,880

924

$

4,254

Insurance

-

.31

%

Aflac

Inc

19,068

2,103

Allstate

Corp/The

10,578

2,202

American

International

Group

Inc

21,812

1,866

Aon

PLC

8,689

3,066

Arch

Capital

Group

Ltd

(d) 14,598

1,400

Arthur

J

Gallagher

&

Co

10,380

2,686

Assurant

Inc

2,025

Berkshire

Hathaway

Inc

-

Class

B

(d) 74,130

37,262

Brown

&

Brown

Inc

11,868

946

Chubb

Ltd

14,796

4,618

Cincinnati

Financial

Corp

6,308

1,030

Erie

Indemnity

Co

1,026

Everest

Group

Ltd

1,696

576

Globe

Life

Inc

3,219

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Insurance

(continued)

Hartford

Insurance

Group

Inc/The

11,265

$

1,552

Loews

Corp

6,851

722

Marsh

&

McLennan

Cos

Inc

19,806

3,674

MetLife

Inc

22,375

1,766

Principal

Financial

Group

Inc

8,082

713

Progressive

Corp/The

23,705

5,398

Prudential

Financial

Inc

14,150

1,597

Travelers

Cos

Inc/The

9,018

2,616

W

R

Berkley

Corp

12,135

851

Willis

Towers

Watson

PLC

3,871

1,272

$

79,148

Internet

-

.22

%

Airbnb

Inc

(d) 17,192

2,333

Alphabet

Inc

-

A

Shares

235,193

73,615

Alphabet

Inc

-

C

Shares

187,977

58,987

Amazon.com

Inc

(d) 393,257

90,772

AppLovin

Corp

(d) 10,943

7,374

Booking

Holdings

Inc

1,304

6,983

CDW

Corp/DE

5,264

717

DoorDash

Inc

-

Class

A

(d) 15,111

3,422

eBay

Inc

18,273

1,592

Expedia

Group

Inc

4,731

1,340

F5

Inc

(d) 2,330

595

Gen

Digital

Inc

22,686

617

GoDaddy

Inc

(d) 5,464

678

Match

Group

Inc

9,544

Meta

Platforms

Inc

88,039

58,114

Netflix

Inc

(d) 171,295

16,061

Palo

Alto

Networks

Inc

(d) 27,649

5,093

Robinhood

Markets

Inc

(d) 31,788

3,595

Uber

Technologies

Inc

(d) 83,997

6,863

VeriSign

Inc

3,373

820

$

339,879

Iron

&

Steel

-

.10

%

Nucor

Corp

9,252

1,509

Steel

Dynamics

Inc

5,550

941

$

2,450

Leisure

Products

&

Services

-

.19

%

Carnival

Corp

43,895

1,341

Norwegian

Cruise

Line

Holdings

Ltd

(d) 18,403

Royal

Caribbean

Cruises

Ltd

10,251

2,859

$

4,611

Lodging

-

.29

%

Hilton

Worldwide

Holdings

Inc

9,397

2,699

Las

Vegas

Sands

Corp

12,300

801

Marriott

International

Inc/MD

9,005

2,794

MGM

Resorts

International

(d) 8,291

Wynn

Resorts

Ltd

3,413

$

7,007

Machinery

-

Construction

&

Mining

-

.75

%

Caterpillar

Inc

18,919

10,838

GE

Vernova

Inc

10,969

7,169

$

18,007

Machinery

-

Diversified

-

.59

%

Deere

&

Co

10,164

4,732

Dover

Corp

5,545

1,083

IDEX

Corp

3,026

538

Ingersoll

Rand

Inc

14,536

1,152

Nordson

Corp

2,158

519

Otis

Worldwide

Corp

15,755

1,376

Rockwell

Automation

Inc

4,539

1,766

Westinghouse

Air

Brake

Technologies

Corp

6,912

1,475

Xylem

Inc/NY

9,843

1,340

$

13,981

Media

-

.77

%

Charter

Communications

Inc

(d) 3,558

743

Comcast

Corp

-

Class

A

146,923

4,391

FactSet

Research

Systems

Inc

1,515

Schedule

of

Investments

LargeCap

S&P

500

Index

Account

December

31,

2025

See

accompanying

notes.

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Media

(continued)

Fox

Corp

-

A

Shares

8,424

$

615

Fox

Corp

-

B

Shares

6,000

News

Corp

-

A

Shares

15,139

News

Corp

-

B

Shares

(f) 4,991

Paramount

Skydance

Corp

12,562

Walt

Disney

Co/The

72,171

8,211

Warner

Bros

Discovery

Inc

(d) 100,171

2,887

$

18,388

Mining

-

.31

%

Freeport-McMoRan

Inc

58,048

2,948

Newmont

Corp

44,115

4,405

$

7,353

Miscellaneous

Manufacturers

-

.60

%

3M

Co

21,475

3,438

A

O

Smith

Corp

4,583

Axon

Enterprise

Inc

(d) 3,189

1,811

Illinois

Tool

Works

Inc

10,673

2,629

Parker-Hannifin

Corp

5,102

4,484

Teledyne

Technologies

Inc

(d) 1,897

969

Textron

Inc

7,125

621

$

14,259

Office

&

Business

Equipment

-

.02

%

Zebra

Technologies

Corp

(d) 2,048

Oil

&

Gas

-

.21

%

APA

Corp

14,337

Chevron

Corp

76,514

11,662

ConocoPhillips

49,954

4,676

Coterra

Energy

Inc

30,780

810

Devon

Energy

Corp

25,360

929

Diamondback

Energy

Inc

7,529

1,132

EOG

Resources

Inc

21,935

2,303

EQT

Corp

25,229

1,352

Expand

Energy

Corp

9,629

1,063

Exxon

Mobil

Corp

170,480

20,516

Marathon

Petroleum

Corp

12,153

1,976

Occidental

Petroleum

Corp

29,073

1,195

Phillips

16,289

2,102

Texas

Pacific

Land

Corp

2,343

673

Valero

Energy

Corp

12,331

2,007

$

52,747

Oil

&

Gas

Services

-

.21

%

Baker

Hughes

Co

39,890

1,817

Halliburton

Co

34,024

961

SLB

Ltd

60,391

2,318

$

5,096

Packaging

&

Containers

-

.12

%

Amcor

PLC

93,313

778

Ball

Corp

10,834

574

Packaging

Corp

of

America

3,613

745

Smurfit

WestRock

PLC

21,110

817

$

2,914

Pharmaceuticals

-

.64

%

AbbVie

Inc

71,445

16,324

Becton

Dickinson

&

Co

11,588

2,249

Bristol-Myers

Squibb

Co

82,296

4,439

Cardinal

Health

Inc

9,605

1,974

Cencora

Inc

7,838

2,647

CVS

Health

Corp

51,315

4,072

Dexcom

Inc

(d) 15,767

1,046

Eli

Lilly

&

Co

32,104

34,502

Henry

Schein

Inc

(d) 4,046

Johnson

&

Johnson

97,394

20,156

McKesson

Corp

4,990

4,093

Merck

&

Co

Inc

100,336

10,561

Pfizer

Inc

229,845

5,723

Viatris

Inc

46,561

580

Zoetis

Inc

17,816

2,242

$

110,914

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Pipelines

-

.36

%

Kinder

Morgan

Inc

79,143

$

2,176

ONEOK

Inc

25,438

1,870

Targa

Resources

Corp

8,678

1,601

Williams

Cos

Inc/The

49,368

2,967

$

8,614

Private

Equity

-

.34

%

Blackstone

Inc

29,851

4,601

KKR

&

Co

Inc

27,744

3,537

$

8,138

Real

Estate

-

.13

%

CBRE

Group

Inc

(d) 11,851

1,905

CoStar

Group

Inc

(d) 17,131

1,152

$

3,057

REITs

-

.68

%

Alexandria

Real

Estate

Equities

Inc

6,287

American

Tower

Corp

18,925

3,323

AvalonBay

Communities

Inc

5,718

1,037

BXP

Inc

5,955

Camden

Property

Trust

4,302

Crown

Castle

Inc

17,605

1,565

Digital

Realty

Trust

Inc

13,052

2,019

Equinix

Inc

3,968

3,040

Equity

Residential

13,997

882

Essex

Property

Trust

Inc

2,604

681

Extra

Space

Storage

Inc

8,581

1,117

Federal

Realty

Investment

Trust

3,174

Healthpeak

Properties

Inc

28,100

Host

Hotels

&

Resorts

Inc

25,855

Invitation

Homes

Inc

22,800

634

Iron

Mountain

Inc

11,948

991

Kimco

Realty

Corp

27,377

555

Mid-America

Apartment

Communities

Inc

4,734

658

Prologis

Inc

37,549

4,793

Public

Storage

6,384

1,657

Realty

Income

Corp

37,186

2,096

Regency

Centers

Corp

6,653

SBA

Communications

Corp

4,308

833

Simon

Property

Group

Inc

13,198

2,443

UDR

Inc

12,158

Ventas

Inc

18,988

1,469

VICI

Properties

Inc

43,206

1,215

Welltower

Inc

27,744

5,150

Weyerhaeuser

Co

29,142

690

$

40,167

Retail

-

.12

%

AutoZone

Inc

(d) 673

2,283

Best

Buy

Co

Inc

7,899

529

Carvana

Co

(d) 5,716

2,412

Chipotle

Mexican

Grill

Inc

(d) 53,454

1,978

Costco

Wholesale

Corp

17,916

15,450

Darden

Restaurants

Inc

4,703

865

Dollar

General

Corp

8,898

1,181

Dollar

Tree

Inc

(d) 7,669

943

Domino's

Pizza

Inc

1,257

524

Genuine

Parts

Co

5,624

692

Home

Depot

Inc/The

40,238

13,846

Lowe's

Cos

Inc

22,670

5,467

Lululemon

Athletica

Inc

(d) 4,363

907

McDonald's

Corp

28,790

8,799

O'Reilly

Automotive

Inc

(d) 34,124

3,112

Ross

Stores

Inc

13,148

2,369

Starbucks

Corp

45,960

3,870

Target

Corp

18,370

1,796

TJX

Cos

Inc/The

44,991

6,911

Tractor

Supply

Co

21,362

1,068

Ulta

Beauty

Inc

(d) 1,813

1,097

Walmart

Inc

177,266

19,749

Williams-Sonoma

Inc

4,924

879

Schedule

of

Investments

LargeCap

S&P

500

Index

Account

December

31,

2025

See

accompanying

notes.

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Retail

(continued)

Yum!

Brands

Inc

11,223

$

1,698

$

98,425

Semiconductors

-

.95

%

Advanced

Micro

Devices

Inc

(d) 65,812

14,094

Analog

Devices

Inc

19,888

5,394

Applied

Materials

Inc

32,205

8,276

Broadcom

Inc

190,900

66,070

Intel

Corp

(d) 181,256

6,688

KLA

Corp

5,312

6,454

Lam

Research

Corp

50,776

8,692

Microchip

Technology

Inc

21,847

1,392

Micron

Technology

Inc

45,374

12,950

Monolithic

Power

Systems

Inc

1,937

1,756

NVIDIA

Corp

982,326

183,204

NXP

Semiconductors

NV

10,175

2,209

ON

Semiconductor

Corp

(d) 16,267

881

QUALCOMM

Inc

43,297

7,406

Skyworks

Solutions

Inc

6,009

Teradyne

Inc

6,332

1,226

Texas

Instruments

Inc

36,732

6,373

$

333,446

Shipbuilding

-

.02

%

Huntington

Ingalls

Industries

Inc

1,587

540

Software

-

.87

%

Adobe

Inc

(d) 16,922

5,923

Akamai

Technologies

Inc

(d) 5,814

507

Autodesk

Inc

(d) 8,611

2,549

Broadridge

Financial

Solutions

Inc

4,719

1,053

Cadence

Design

Systems

Inc

(d) 11,004

3,440

Datadog

Inc

(d) 13,155

1,789

Dayforce

Inc

(d) 6,468

Electronic

Arts

Inc

9,075

1,854

Fair

Isaac

Corp

(d) 959

1,621

Fidelity

National

Information

Services

Inc

20,935

1,392

Fiserv

Inc

(d) 21,744

1,461

Intuit

Inc

11,271

7,466

Jack

Henry

&

Associates

Inc

2,926

534

Microsoft

Corp

300,455

145,306

MSCI

Inc

3,038

1,743

Oracle

Corp

67,992

13,252

Palantir

Technologies

Inc

(d) 92,343

16,414

Paychex

Inc

13,095

1,469

Paycom

Software

Inc

1,976

PTC

Inc

(d) 4,843

844

Roper

Technologies

Inc

4,352

1,937

Salesforce

Inc

38,486

10,195

ServiceNow

Inc

(d) 42,060

6,443

Synopsys

Inc

(d) 7,508

3,527

Take-Two

Interactive

Software

Inc

(d) 7,020

1,797

Tyler

Technologies

Inc

(d) 1,740

790

Workday

Inc

(d) 8,771

1,884

$

235,952

Telecommunications

-

.72

%

Arista

Networks

Inc

(d) 41,743

5,470

AT&T

Inc

286,591

7,119

Cisco

Systems

Inc

159,305

12,271

Corning

Inc

31,539

2,762

Motorola

Solutions

Inc

6,734

2,581

T-Mobile

US

Inc

19,444

3,948

Verizon

Communications

Inc

170,450

6,942

$

41,093

Toys,

Games

&

Hobbies

-

.02

%

Hasbro

Inc

5,388

Transportation

-

.83

%

CH

Robinson

Worldwide

Inc

4,775

768

CSX

Corp

75,278

2,729

Expeditors

International

of

Washington

Inc

5,418

807

FedEx

Corp

8,776

2,535

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Transportation

(continued)

JB

Hunt

Transport

Services

Inc

3,041

$

591

Norfolk

Southern

Corp

9,072

2,619

Old

Dominion

Freight

Line

Inc

7,439

1,167

Union

Pacific

Corp

23,980

5,547

United

Parcel

Service

Inc

29,873

2,963

$

19,726

Water

-

.04

%

American

Water

Works

Co

Inc

7,888

1,029

TOTAL

COMMON

STOCKS

$

2,362,403

Total

Investments

$

2,393,069

Other

Assets

and

Liabilities

- (0.12)%

(2,915)

TOTAL

NET

ASSETS

-

100.00%

$

2,390,154

(a) 1-day

yield

shown

is

as

of

period

end.

(b) Security

or

a

portion

of

the

security

was

received

as

collateral

for

securities

lending.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$152

or

0.01%

of

net

assets.

(c) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(d) Non-income

producing

security

(e) Security

or

a

portion

of

the

security

was

pledged

to

cover

margin

requirements

for

futures

contracts.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$8,864

or

0.37%

of

net

assets.

(f) Security

or

a

portion

of

the

security

was

on

loan. At

the

end

of

the

period,

the

value

of

these

securities

totaled

$146

or

0.01%

of

net

assets.

Schedule

of

Investments

LargeCap

S&P

500

Index

Account

December

31,

2025

See

accompanying

notes.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

85,468

$

522,873

$

599,208

$

9,133

$

85,468

$

522,873

$

599,208

$

9,133

Income

(a) Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

1,907

$

—

$

—

$

—

$

1,907

$

—

$

—

$

—

Amounts

in

thousands.

(a) Amount

excludes

earnings

from

securities

lending

collateral.

Futures

Contracts

Description

and

Expiration

Date

Type

Contracts

Notional

Amount

Value

and

Unrealized

Appreciation/(Depreciation)

S&P

500

Emini;

March

2026

Long

$

9,994

$

(107)

Total

$

(107)

Amounts

in

thousands

except

contracts.

Schedule

of

Investments

LargeCap

S&P

500

Managed

Volatility

Index

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.23

%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

.76

%

iShares

Core

S&P

500

ETF

1,316

$

901

Money

Market

Funds

-

.47

%

BlackRock

Liquidity

FedFund

-

Institutional

Class

3.64%

(a),(b)

6,642

Principal

Government

Money

Market

Fund

-

Class

3.67%

(a),(c)

5,320,165

5,320

$

5,327

TOTAL

INVESTMENT

COMPANIES

$

6,228

COMMON

STOCKS

-

.22

%

Shares

Held

Value

(000's)

Advertising

-

.07

%

Omnicom

Group

Inc

613

$

Trade

Desk

Inc/The

(d) 845

$

Aerospace

&

Defense

-

.96

%

Boeing

Co/The

(d) 1,501

General

Dynamics

Corp

General

Electric

Co

2,024

623

Howmet

Aerospace

Inc

772

L3Harris

Technologies

Inc

Lockheed

Martin

Corp

Northrop

Grumman

Corp

RTX

Corp

2,571

TransDigm

Group

Inc

$

2,329

Agriculture

-

.62

%

Altria

Group

Inc

3,223

Archer-Daniels-Midland

Co

921

Bunge

Global

SA

Philip

Morris

International

Inc

2,987

$

741

Airlines

-

.17

%

Delta

Air

Lines

Inc

1,243

Southwest

Airlines

Co

993

United

Airlines

Holdings

Inc

(d) 620

$

Apparel

-

.21

%

Deckers

Outdoor

Corp

(d) 280

NIKE

Inc

2,281

Ralph

Lauren

Corp

Tapestry

Inc

$

Automobile

Manufacturers

-

.45

%

Cummins

Inc

Ford

Motor

Co

7,503

General

Motors

Co

1,790

PACCAR

Inc

1,006

Tesla

Inc

(d) 5,390

2,424

$

2,913

Automobile

Parts

&

Equipment

-

.03

%

Aptiv

PLC

(d) 416

Banks

-

.44

%

Bank

of

America

Corp

12,890

709

Bank

of

New

York

Mellon

Corp/The

1,339

Citigroup

Inc

3,434

Citizens

Financial

Group

Inc

825

Fifth

Third

Bancorp

1,269

Goldman

Sachs

Group

Inc/The

576

506

Huntington

Bancshares

Inc/OH

3,015

JPMorgan

Chase

&

Co

5,223

1,683

KeyCorp

1,787

M&T

Bank

Corp

Morgan

Stanley

2,318

Northern

Trust

Corp

PNC

Financial

Services

Group

Inc/The

753

Regions

Financial

Corp

1,683

State

Street

Corp

536

Truist

Financial

Corp

2,455

US

Bancorp

2,983

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Banks

(continued)

Wells

Fargo

&

Co

6,023

$

561

$

5,285

Beverages

-

.95

%

Brown-Forman

Corp

-

B

Shares

Coca-Cola

Co/The

7,428

519

Constellation

Brands

Inc

Keurig

Dr

Pepper

Inc

2,606

Molson

Coors

Beverage

Co

Monster

Beverage

Corp

(d) 1,367

PepsiCo

Inc

2,624

$

1,135

Biotechnology

-

.00

%

Amgen

Inc

1,032

Biogen

Inc

(d) 281

Corteva

Inc

1,297

Gilead

Sciences

Inc

2,381

Incyte

Corp

(d) 315

Moderna

Inc

(d) 666

Regeneron

Pharmaceuticals

Inc

Vertex

Pharmaceuticals

Inc

(d) 487

$

1,188

Building

Materials

-

.64

%

Builders

FirstSource

Inc

(d) 211

Carrier

Global

Corp

1,520

CRH

PLC

1,285

Johnson

Controls

International

plc

1,173

Lennox

International

Inc

Martin

Marietta

Materials

Inc

Masco

Corp

Trane

Technologies

PLC

Vulcan

Materials

Co

$

768

Chemicals

-

.86

%

Air

Products

and

Chemicals

Inc

Albemarle

Corp

CF

Industries

Holdings

Inc

Dow

Inc

1,361

DuPont

de

Nemours

Inc

802

Ecolab

Inc

International

Flavors

&

Fragrances

Inc

Linde

PLC

896

LyondellBasell

Industries

NV

Mosaic

Co/The

611

PPG

Industries

Inc

Qnity

Electronics

Inc

Sherwin-Williams

Co/The

$

1,024

Commercial

Services

-

.18

%

Automatic

Data

Processing

Inc

777

Block

Inc

(d) 1,051

Cintas

Corp

656

Corpay

Inc

(d) 134

Equifax

Inc

Global

Payments

Inc

Moody's

Corp

PayPal

Holdings

Inc

1,796

Quanta

Services

Inc

Rollins

Inc

562

S&P

Global

Inc

595

United

Rentals

Inc

Verisk

Analytics

Inc

$

1,399

Computers

-

.06

%

Accenture

PLC

-

Class

A

1,190

Apple

Inc

28,348

7,707

Cognizant

Technology

Solutions

Corp

927

Crowdstrike

Holdings

Inc

(d) 481

Dell

Technologies

Inc

579

Schedule

of

Investments

LargeCap

S&P

500

Managed

Volatility

Index

Account

December

31,

2025

See

accompanying

notes.

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Computers

(continued)

EPAM

Systems

Inc

(d) 106

$

Fortinet

Inc

(d) 1,213

Gartner

Inc

(d) 139

Hewlett

Packard

Enterprise

Co

2,530

HP

Inc

1,794

International

Business

Machines

Corp

1,792

531

Leidos

Holdings

Inc

NetApp

Inc

Sandisk

Corp/DE

(d) 267

Seagate

Technology

Holdings

PLC

Super

Micro

Computer

Inc

(d) 962

Western

Digital

Corp

657

$

9,591

Consumer

Products

-

.13

%

Avery

Dennison

Corp

Church

&

Dwight

Co

Inc

Clorox

Co/The

Kimberly-Clark

Corp

636

$

Cosmetics

&

Personal

Care

-

.74

%

Colgate-Palmolive

Co

1,547

Estee

Lauder

Cos

Inc/The

Kenvue

Inc

3,677

Procter

&

Gamble

Co/The

4,484

643

$

877

Distribution

&

Wholesale

-

.21

%

Copart

Inc

(d) 1,705

Fastenal

Co

2,203

Pool

Corp

WW

Grainger

Inc

$

Diversified

Financial

Services

-

.74

%

American

Express

Co

1,031

Ameriprise

Financial

Inc

Apollo

Global

Management

Inc

889

Ares

Management

Corp

Blackrock

Inc

Capital

One

Financial

Corp

1,220

Cboe

Global

Markets

Inc

Charles

Schwab

Corp/The

3,206

CME

Group

Inc

690

Coinbase

Global

Inc

(d) 436

Franklin

Resources

Inc

585

Interactive

Brokers

Group

Inc

-

A

Shares

853

Intercontinental

Exchange

Inc

1,095

Invesco

Ltd

855

Mastercard

Inc

1,574

899

Nasdaq

Inc

866

Raymond

James

Financial

Inc

Synchrony

Financial

692

T

Rowe

Price

Group

Inc

Visa

Inc

3,239

1,136

$

4,454

Electric

-

.00

%

AES

Corp/The

1,371

Alliant

Energy

Corp

Ameren

Corp

517

American

Electric

Power

Co

Inc

1,026

CenterPoint

Energy

Inc

1,252

CMS

Energy

Corp

582

Consolidated

Edison

Inc

692

Constellation

Energy

Corp

599

Dominion

Energy

Inc

1,638

DTE

Energy

Co

Duke

Energy

Corp

1,491

Edison

International

738

Entergy

Corp

856

Evergy

Inc

Eversource

Energy

718

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Electric

(continued)

Exelon

Corp

1,938

$

FirstEnergy

Corp

995

NextEra

Energy

Inc

3,995

NRG

Energy

Inc

PG&E

Corp

4,217

Pinnacle

West

Capital

Corp

PPL

Corp

1,419

Public

Service

Enterprise

Group

Inc

957

Sempra

1,252

Southern

Co/The

2,110

Vistra

Corp

611

WEC

Energy

Group

Inc

623

Xcel

Energy

Inc

1,133

$

2,381

Electrical

Components

&

Equipment

-

.41

%

AMETEK

Inc

Eaton

Corp

PLC

746

Emerson

Electric

Co

1,078

Generac

Holdings

Inc

(d) 112

$

Electronics

-

.89

%

Allegion

plc

Amphenol

Corp

2,347

Fortive

Corp

610

Garmin

Ltd

Honeywell

International

Inc

1,218

Hubbell

Inc

Jabil

Inc

Keysight

Technologies

Inc

(d) 329

Mettler-Toledo

International

Inc

(d) 40

TE

Connectivity

PLC

565

Trimble

Inc

(d) 455

$

1,057

Energy

-

Alternate

Sources

-

.05

%

First

Solar

Inc

(d) 205

Engineering

&

Construction

-

.12

%

Comfort

Systems

USA

Inc

EMCOR

Group

Inc

Jacobs

Solutions

Inc

$

Entertainment

-

.06

%

Live

Nation

Entertainment

Inc

(d) 301

TKO

Group

Holdings

Inc

$

Environmental

Control

-

.27

%

Pentair

PLC

Republic

Services

Inc

Veralto

Corp

Waste

Management

Inc

710

$

Food

-

.46

%

Campbell's

Company/The

Conagra

Brands

Inc

918

General

Mills

Inc

1,025

Hershey

Co/The

Hormel

Foods

Corp

560

J

M

Smucker

Co/The

Kraft

Heinz

Co/The

1,635

Kroger

Co/The

1,167

Lamb

Weston

Holdings

Inc

McCormick

&

Co

Inc/MD

Mondelez

International

Inc

2,476

Sysco

Corp

917

Tyson

Foods

Inc

544

$

548

Forest

Products

&

Paper

-

.03

%

International

Paper

Co

1,012

Schedule

of

Investments

LargeCap

S&P

500

Managed

Volatility

Index

Account

December

31,

2025

See

accompanying

notes.

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Gas

-

.08

%

Atmos

Energy

Corp

$

NiSource

Inc

914

$

Hand

&

Machine

Tools

-

.05

%

Snap-on

Inc

Stanley

Black

&

Decker

Inc

$

Healthcare

-

Products

-

.53

%

Abbott

Laboratories

3,337

Agilent

Technologies

Inc

544

Align

Technology

Inc

(d) 128

Baxter

International

Inc

984

Bio-Techne

Corp

Boston

Scientific

Corp

(d) 2,845

Cooper

Cos

Inc/The

(d) 382

Danaher

Corp

1,207

Edwards

Lifesciences

Corp

(d) 1,114

GE

HealthCare

Technologies

Inc

875

Hologic

Inc

(d) 425

IDEXX

Laboratories

Inc

(d) 154

Insulet

Corp

(d) 134

Intuitive

Surgical

Inc

(d) 681

Medtronic

PLC

2,459

ResMed

Inc

Revvity

Inc

Solventum

Corp

(d) 281

STERIS

PLC

Stryker

Corp

659

Thermo

Fisher

Scientific

Inc

721

Waters

Corp

(d) 115

West

Pharmaceutical

Services

Inc

Zimmer

Biomet

Holdings

Inc

$

3,014

Healthcare

-

Services

-

.11

%

Centene

Corp

(d) 895

Charles

River

Laboratories

International

Inc

(d) 94

Cigna

Group/The

511

DaVita

Inc

(d) 67

Elevance

Health

Inc

HCA

Healthcare

Inc

Humana

Inc

IQVIA

Holdings

Inc

(d) 326

Labcorp

Holdings

Inc

Molina

Healthcare

Inc

(d) 99

Quest

Diagnostics

Inc

UnitedHealth

Group

Inc

1,739

574

Universal

Health

Services

Inc

$

1,321

Home

Builders

-

.17

%

DR

Horton

Inc

526

Lennar

Corp

-

A

Shares

NVR

Inc

(d) 6

PulteGroup

Inc

$

Insurance

-

.16

%

Aflac

Inc

906

Allstate

Corp/The

503

American

International

Group

Inc

1,036

Aon

PLC

Arch

Capital

Group

Ltd

(d) 693

Arthur

J

Gallagher

&

Co

Assurant

Inc

Berkshire

Hathaway

Inc

-

Class

B

(d) 3,519

1,769

Brown

&

Brown

Inc

562

Chubb

Ltd

703

Cincinnati

Financial

Corp

Erie

Indemnity

Co

Everest

Group

Ltd

Globe

Life

Inc

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Insurance

(continued)

Hartford

Insurance

Group

Inc/The

535

$

Loews

Corp

Marsh

&

McLennan

Cos

Inc

941

MetLife

Inc

1,062

Principal

Financial

Group

Inc

Progressive

Corp/The

1,125

Prudential

Financial

Inc

672

Travelers

Cos

Inc/The

W

R

Berkley

Corp

575

Willis

Towers

Watson

PLC

$

3,758

Internet

-

.55

%

Airbnb

Inc

(d) 817

Alphabet

Inc

-

A

Shares

11,162

3,494

Alphabet

Inc

-

C

Shares

8,922

2,800

Amazon.com

Inc

(d) 18,662

4,308

AppLovin

Corp

(d) 520

Booking

Holdings

Inc

CDW

Corp/DE

DoorDash

Inc

-

Class

A

(d) 716

eBay

Inc

868

Expedia

Group

Inc

F5

Inc

(d) 110

Gen

Digital

Inc

1,072

GoDaddy

Inc

(d) 260

Match

Group

Inc

Meta

Platforms

Inc

4,177

2,757

Netflix

Inc

(d) 8,130

762

Palo

Alto

Networks

Inc

(d) 1,311

Robinhood

Markets

Inc

(d) 1,507

Uber

Technologies

Inc

(d) 3,987

VeriSign

Inc

$

16,130

Iron

&

Steel

-

.10

%

Nucor

Corp

Steel

Dynamics

Inc

$

Leisure

Products

&

Services

-

.18

%

Carnival

Corp

2,081

Norwegian

Cruise

Line

Holdings

Ltd

(d) 873

Royal

Caribbean

Cruises

Ltd

$

Lodging

-

.28

%

Hilton

Worldwide

Holdings

Inc

Las

Vegas

Sands

Corp

584

Marriott

International

Inc/MD

MGM

Resorts

International

(d) 390

Wynn

Resorts

Ltd

$

Machinery

-

Construction

&

Mining

-

.72

%

Caterpillar

Inc

898

514

GE

Vernova

Inc

521

$

855

Machinery

-

Diversified

-

.56

%

Deere

&

Co

Dover

Corp

IDEX

Corp

Ingersoll

Rand

Inc

690

Nordson

Corp

Otis

Worldwide

Corp

748

Rockwell

Automation

Inc

Westinghouse

Air

Brake

Technologies

Corp

Xylem

Inc/NY

$

664

Media

-

.73

%

Charter

Communications

Inc

(d) 169

Comcast

Corp

-

Class

A

6,973

FactSet

Research

Systems

Inc

Schedule

of

Investments

LargeCap

S&P

500

Managed

Volatility

Index

Account

December

31,

2025

See

accompanying

notes.

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Media

(continued)

Fox

Corp

-

A

Shares

$

Fox

Corp

-

B

Shares

News

Corp

-

A

Shares

722

News

Corp

-

B

Shares

(e) 235

Paramount

Skydance

Corp

596

Walt

Disney

Co/The

3,426

Warner

Bros

Discovery

Inc

(d) 4,753

$

873

Mining

-

.29

%

Freeport-McMoRan

Inc

2,755

Newmont

Corp

2,094

$

Miscellaneous

Manufacturers

-

.57

%

3M

Co

1,020

A

O

Smith

Corp

Axon

Enterprise

Inc

(d) 151

Illinois

Tool

Works

Inc

507

Parker-Hannifin

Corp

Teledyne

Technologies

Inc

(d) 91

Textron

Inc

$

678

Office

&

Business

Equipment

-

.02

%

Zebra

Technologies

Corp

(d) 97

Oil

&

Gas

-

.10

%

APA

Corp

685

Chevron

Corp

3,632

554

ConocoPhillips

2,372

Coterra

Energy

Inc

1,463

Devon

Energy

Corp

1,204

Diamondback

Energy

Inc

EOG

Resources

Inc

1,042

EQT

Corp

1,196

Expand

Energy

Corp

Exxon

Mobil

Corp

8,091

974

Marathon

Petroleum

Corp

577

Occidental

Petroleum

Corp

1,379

Phillips

774

Texas

Pacific

Land

Corp

Valero

Energy

Corp

586

$

2,505

Oil

&

Gas

Services

-

.20

%

Baker

Hughes

Co

1,892

Halliburton

Co

1,615

SLB

Ltd

2,863

$

Packaging

&

Containers

-

.12

%

Amcor

PLC

4,421

Ball

Corp

515

Packaging

Corp

of

America

Smurfit

WestRock

PLC

1,000

$

Pharmaceuticals

-

.42

%

AbbVie

Inc

3,391

775

Becton

Dickinson

&

Co

549

Bristol-Myers

Squibb

Co

3,906

Cardinal

Health

Inc

Cencora

Inc

CVS

Health

Corp

2,433

Dexcom

Inc

(d) 749

Eli

Lilly

&

Co

1,524

1,638

Henry

Schein

Inc

(d) 193

Johnson

&

Johnson

4,623

957

McKesson

Corp

Merck

&

Co

Inc

4,763

501

Pfizer

Inc

10,908

Viatris

Inc

2,211

Zoetis

Inc

846

$

5,265

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Pipelines

-

.34

%

Kinder

Morgan

Inc

3,752

$

ONEOK

Inc

1,205

Targa

Resources

Corp

Williams

Cos

Inc/The

2,343

$

Private

Equity

-

.32

%

Blackstone

Inc

1,415

KKR

&

Co

Inc

1,315

$

Real

Estate

-

.12

%

CBRE

Group

Inc

(d) 561

CoStar

Group

Inc

(d) 812

$

REITs

-

.60

%

Alexandria

Real

Estate

Equities

Inc

American

Tower

Corp

898

AvalonBay

Communities

Inc

BXP

Inc

Camden

Property

Trust

Crown

Castle

Inc

835

Digital

Realty

Trust

Inc

618

Equinix

Inc

Equity

Residential

664

Essex

Property

Trust

Inc

Extra

Space

Storage

Inc

Federal

Realty

Investment

Trust

Healthpeak

Properties

Inc

1,333

Host

Hotels

&

Resorts

Inc

1,228

Invitation

Homes

Inc

1,082

Iron

Mountain

Inc

567

Kimco

Realty

Corp

1,300

Mid-America

Apartment

Communities

Inc

Prologis

Inc

1,782

Public

Storage

Realty

Income

Corp

1,764

Regency

Centers

Corp

SBA

Communications

Corp

Simon

Property

Group

Inc

625

UDR

Inc

580

Ventas

Inc

900

VICI

Properties

Inc

2,049

Welltower

Inc

1,315

Weyerhaeuser

Co

1,385

$

1,905

Retail

-

.93

%

AutoZone

Inc

(d) 32

Best

Buy

Co

Inc

Carvana

Co

(d) 271

Chipotle

Mexican

Grill

Inc

(d) 2,538

Costco

Wholesale

Corp

851

734

Darden

Restaurants

Inc

Dollar

General

Corp

Dollar

Tree

Inc

(d) 364

Domino's

Pizza

Inc

Genuine

Parts

Co

Home

Depot

Inc/The

1,910

657

Lowe's

Cos

Inc

1,075

Lululemon

Athletica

Inc

(d) 208

McDonald's

Corp

1,367

O'Reilly

Automotive

Inc

(d) 1,620

Ross

Stores

Inc

625

Starbucks

Corp

2,181

Target

Corp

872

TJX

Cos

Inc/The

2,136

Tractor

Supply

Co

1,016

Ulta

Beauty

Inc

(d) 87

Walmart

Inc

8,414

937

Williams-Sonoma

Inc

Schedule

of

Investments

LargeCap

S&P

500

Managed

Volatility

Index

Account

December

31,

2025

See

accompanying

notes.

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Retail

(continued)

Yum!

Brands

Inc

532

$

$

4,673

Semiconductors

-

.30

%

Advanced

Micro

Devices

Inc

(d) 3,122

669

Analog

Devices

Inc

944

Applied

Materials

Inc

1,529

Broadcom

Inc

9,059

3,135

Intel

Corp

(d) 8,601

KLA

Corp

Lam

Research

Corp

2,411

Microchip

Technology

Inc

1,036

Micron

Technology

Inc

2,152

614

Monolithic

Power

Systems

Inc

NVIDIA

Corp

46,618

8,693

NXP

Semiconductors

NV

ON

Semiconductor

Corp

(d) 773

QUALCOMM

Inc

2,056

Skyworks

Solutions

Inc

Teradyne

Inc

Texas

Instruments

Inc

1,744

$

15,824

Shipbuilding

-

.02

%

Huntington

Ingalls

Industries

Inc

Software

-

.41

%

Adobe

Inc

(d) 804

Akamai

Technologies

Inc

(d) 275

Autodesk

Inc

(d) 409

Broadridge

Financial

Solutions

Inc

Cadence

Design

Systems

Inc

(d) 521

Datadog

Inc

(d) 623

Dayforce

Inc

(d) 305

Electronic

Arts

Inc

Fair

Isaac

Corp

(d) 46

Fidelity

National

Information

Services

Inc

994

Fiserv

Inc

(d) 1,033

Intuit

Inc

535

Jack

Henry

&

Associates

Inc

Microsoft

Corp

(f) 14,260

6,896

MSCI

Inc

Oracle

Corp

3,226

629

Palantir

Technologies

Inc

(d) 4,382

779

Paychex

Inc

620

Paycom

Software

Inc

PTC

Inc

(d) 229

Roper

Technologies

Inc

Salesforce

Inc

1,827

ServiceNow

Inc

(d) 2,010

Synopsys

Inc

(d) 357

Take-Two

Interactive

Software

Inc

(d) 333

Tyler

Technologies

Inc

(d) 83

Workday

Inc

(d) 415

$

11,201

Telecommunications

-

.64

%

Arista

Networks

Inc

(d) 1,980

AT&T

Inc

13,602

Cisco

Systems

Inc

7,561

582

Corning

Inc

1,496

Motorola

Solutions

Inc

T-Mobile

US

Inc

923

Verizon

Communications

Inc

8,090

$

1,950

Toys,

Games

&

Hobbies

-

.02

%

Hasbro

Inc

Transportation

-

.79

%

CH

Robinson

Worldwide

Inc

CSX

Corp

3,574

Expeditors

International

of

Washington

Inc

FedEx

Corp

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Transportation

(continued)

JB

Hunt

Transport

Services

Inc

$

Norfolk

Southern

Corp

Old

Dominion

Freight

Line

Inc

Union

Pacific

Corp

1,137

United

Parcel

Service

Inc

1,416

$

936

Water

-

.04

%

American

Water

Works

Co

Inc

TOTAL

COMMON

STOCKS

$

112,130

Total

Investments

$

118,358

Other

Assets

and

Liabilities

- 0.55%

656

TOTAL

NET

ASSETS

-

100.00%

$

119,014

(a) 1-day

yield

shown

is

as

of

period

end.

(b) Security

or

a

portion

of

the

security

was

received

as

collateral

for

securities

lending.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$7

or

0.01%

of

net

assets.

(c) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(d) Non-income

producing

security

(e) Security

or

a

portion

of

the

security

was

on

loan. At

the

end

of

the

period,

the

value

of

these

securities

totaled

$6

or

0.01%

of

net

assets.

(f) Security

or

a

portion

of

the

security

was

pledged

to

cover

margin

requirements

for

futures

contracts.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$2,309

or

1.94%

of

net

assets.

Schedule

of

Investments

LargeCap

S&P

500

Managed

Volatility

Index

Account

December

31,

2025

See

accompanying

notes.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

10,999

$

44,790

$

50,469

$

5,320

$

10,999

$

44,790

$

50,469

$

5,320

Income

(a) Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

$

—

$

—

$

—

$

$

—

$

—

$

—

Amounts

in

thousands.

(a) Amount

excludes

earnings

from

securities

lending

collateral.

Futures

Contracts

Description

and

Expiration

Date

Type

Contracts

Notional

Amount

Value

and

Unrealized

Appreciation/(Depreciation)

S&P

500

Emini;

March

2026

Long

$

689

$

(7)

Total

$

(7)

Amounts

in

thousands

except

contracts.

Schedule

of

Investments

MidCap

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

0.69%

Shares

Held

Value

(000's)

Money

Market

Funds

-

0.69%

BlackRock

Liquidity

FedFund

-

Institutional

Class

3.64%

(a),(b)

90,600

$

Principal

Government

Money

Market

Fund

-

Class

3.67%

(a),(b),(c)

3,912,601

3,913

$

4,004

TOTAL

INVESTMENT

COMPANIES

$

4,004

COMMON

STOCKS

-

99.64%

Shares

Held

Value

(000's)

Aerospace

&

Defense

-

10.14%

HEICO

Corp

-

Class

A

118,884

$

30,010

TransDigm

Group

Inc

21,821

29,018

$

59,028

Building

Materials

-

7.94%

Eagle

Materials

Inc

4,156

859

Martin

Marietta

Materials

Inc

29,657

18,466

Vulcan

Materials

Co

94,187

26,864

$

46,189

Chemicals

-

1.74%

Air

Products

and

Chemicals

Inc

16,577

4,095

Perimeter

Solutions

Inc

(d) 150,568

4,145

Sherwin-Williams

Co/The

5,841

1,893

$

10,133

Commercial

Services

-

1.95%

Ashtead

Group

PLC

ADR

46,504

3,290

Moody's

Corp

3,595

1,836

Toast

Inc

(d) 83,729

2,973

Verisk

Analytics

Inc

14,546

3,254

$

11,353

Distribution

&

Wholesale

-

4.18%

Copart

Inc

(d) 475,574

18,619

Fastenal

Co

142,693

5,726

$

24,345

Diversified

Financial

Services

-

4.06%

Ares

Management

Corp

50,901

8,227

Brookfield

Asset

Management

Ltd

102,248

5,357

Brookfield

Wealth

Solutions

Ltd

(d) 4,394

LPL

Financial

Holdings

Inc

27,566

9,845

$

23,631

Electric

-

4.15%

Brookfield

Infrastructure

Partners

LP

513,973

17,855

Brookfield

Renewable

Corp

(e) 47,822

1,834

Brookfield

Renewable

Partners

LP

166,367

4,487

$

24,176

Electrical

Components

&

Equipment

-

0.88%

AMETEK

Inc

24,881

5,108

Electronics

-

1.02%

Mettler-Toledo

International

Inc

(d) 4,261

5,941

Entertainment

-

4.14%

Liberty

Live

Holdings

Inc

-

A

Shares

(d) 6,232

508

Liberty

Live

Holdings

Inc

-

C

Shares

(d) 25,499

2,120

Live

Nation

Entertainment

Inc

(d) 150,463

21,441

$

24,069

Environmental

Control

-

0.95%

Veralto

Corp

11,262

1,124

Waste

Connections

Inc

25,087

4,399

$

5,523

Healthcare

-

Products

-

1.99%

IDEXX

Laboratories

Inc

(d) 10,925

7,391

Waters

Corp

(d) 11,054

4,199

$

11,590

Home

Builders

-

1.86%

Lennar

Corp

-

A

Shares

41,346

4,250

Lennar

Corp

-

B

Shares

849

NVR

Inc

(d) 887

6,469

$

10,800

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Insurance

-

8.96%

Arch

Capital

Group

Ltd

(d) 60,691

$

5,822

Arthur

J

Gallagher

&

Co

30,482

7,888

Brown

&

Brown

Inc

213,691

17,031

Markel

Group

Inc

(d) 7,488

16,097

Ryan

Specialty

Holdings

Inc

59,115

3,052

W

R

Berkley

Corp

32,329

2,267

$

52,157

Internet

-

0.24%

Wix.com

Ltd

(d) 13,266

1,378

Lodging

-

6.24%

Hilton

Worldwide

Holdings

Inc

99,442

28,565

Hyatt

Hotels

Corp

(e) 48,551

7,783

$

36,348

Machinery

-

Diversified

-

0.40%

Graco

Inc

28,432

2,331

Media

-

2.13%

Liberty

Media

Corp-Liberty

Formula

One

-

A

Shares

(d) 12,792

1,143

Liberty

Media

Corp-Liberty

Formula

One

-

C

Shares

(d) 114,492

11,279

$

12,422

Miscellaneous

Manufacturers

-

1.06%

Entegris

Inc

73,468

6,190

Private

Equity

-

8.93%

Brookfield

Corp

621,283

28,511

KKR

&

Co

Inc

184,064

23,464

$

51,975

Real

Estate

-

5.93%

CBRE

Group

Inc

(d) 131,024

21,068

CoStar

Group

Inc

(d) 200,137

13,457

$

34,525

REITs

-

0.10%

Millrose

Properties

Inc

19,039

569

Retail

-

7.46%

AutoZone

Inc

(d) 102

Domino's

Pizza

Inc

22,142

9,229

Floor

&

Decor

Holdings

Inc

(d) 88,434

5,385

O'Reilly

Automotive

Inc

(d) 262,810

23,971

Ross

Stores

Inc

24,843

4,475

$

43,406

Software

-

12.68%

Appfolio

Inc

(d) 16,770

3,902

CCC

Intelligent

Solutions

Holdings

Inc

(d) 527,319

4,192

Constellation

Software

Inc/Canada

3,900

9,359

Constellation

Software

Inc/Canada

-

Warrants

(d),(f)

4,165

—

Fair

Isaac

Corp

(d) 5,261

8,895

Jack

Henry

&

Associates

Inc

3,387

618

Lumine

Group

Inc

(d) 6,936

MSCI

Inc

21,005

12,051

Procore

Technologies

Inc

(d) 46,411

3,376

Roper

Technologies

Inc

23,733

10,564

Topicus.com

Inc

(d) 13,797

1,276

Tyler

Technologies

Inc

(d) 19,428

8,819

Veeva

Systems

Inc

(d) 47,436

10,589

$

73,779

Transportation

-

0.51%

Old

Dominion

Freight

Line

Inc

19,063

2,989

TOTAL

COMMON

STOCKS

$

579,955

Total

Investments

$

583,959

Other

Assets

and

Liabilities

- (0.33)%

(1,896)

TOTAL

NET

ASSETS

-

100.00%

$

582,063

Schedule

of

Investments

MidCap

Account

December

31,

2025

See

accompanying

notes.

(a) 1-day

yield

shown

is

as

of

period

end.

(b) Security

or

a

portion

of

the

security

was

received

as

collateral

for

securities

lending.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$2,281

or

0.39%

of

net

assets.

(c) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(d) Non-income

producing

security

(e) Security

or

a

portion

of

the

security

was

on

loan. At

the

end

of

the

period,

the

value

of

these

securities

totaled

$2,232

or

0.38%

of

net

assets.

(f) The

value

of

these

investments

was

determined

using

significant

unobservable

inputs,

in

good

faith

by

the

Manager,

under

procedures

established

and

periodically

reviewed

by

the

Board

of

Directors.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

1,386

$

158,237

$

155,710

$

3,913

$

1,386

$

158,237

$

155,710

$

3,913

Income

(a) Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

$

—

$

—

$

—

$

$

—

$

—

$

—

Amounts

in

thousands.

(a) Amount

excludes

earnings

from

securities

lending

collateral.

Schedule

of

Investments

Principal

Capital

Appreciation

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.86

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

.86

%

Principal

Government

Money

Market

Fund

-

Class

3.67%

(a),(b)

2,115,098

$

2,115

TOTAL

INVESTMENT

COMPANIES

$

2,115

COMMON

STOCKS

-

.16

%

Shares

Held

Value

(000's)

Aerospace

&

Defense

-

.38

%

Boeing

Co/The

(c) 7,029

$

1,526

RTX

Corp

10,148

1,861

$

3,387

Apparel

-

.61

%

Birkenstock

Holding

Plc

(c) 36,549

1,495

Automobile

Manufacturers

-

.72

%

Cummins

Inc

3,716

1,897

PACCAR

Inc

22,170

2,428

Tesla

Inc

(c) 10,749

4,834

$

9,159

Banks

-

.59

%

Bank

of

America

Corp

22,252

1,224

East

West

Bancorp

Inc

12,987

1,460

JPMorgan

Chase

&

Co

25,010

8,059

Morgan

Stanley

11,803

2,095

Wintrust

Financial

Corp

6,611

924

$

13,762

Biotechnology

-

.92

%

Gilead

Sciences

Inc

10,669

1,310

Insmed

Inc

(c) 3,524

613

Structure

Therapeutics

Inc

ADR

(c) 11,420

794

Vertex

Pharmaceuticals

Inc

(c) 4,449

2,017

$

4,734

Building

Materials

-

.93

%

CRH

PLC

22,206

2,771

Modine

Manufacturing

Co

(c) 4,269

570

Trane

Technologies

PLC

3,650

1,421

$

4,762

Chemicals

-

.91

%

Linde

PLC

5,268

2,246

Commercial

Services

-

.15

%

Service

Corp

International/US

4,691

Computers

-

.00

%

Apple

Inc

55,890

15,194

Western

Digital

Corp

11,821

2,037

$

17,231

Cosmetics

&

Personal

Care

-

.62

%

Procter

&

Gamble

Co/The

10,650

1,526

Diversified

Financial

Services

-

.52

%

American

Express

Co

7,469

2,763

Ameriprise

Financial

Inc

3,883

1,904

Nasdaq

Inc

29,572

2,873

Visa

Inc

17,288

6,063

$

13,603

Electric

-

.30

%

Constellation

Energy

Corp

5,332

1,884

NRG

Energy

Inc

8,215

1,308

$

3,192

Electrical

Components

&

Equipment

-

.64

%

Eaton

Corp

PLC

4,947

1,576

Electronics

-

.29

%

Amphenol

Corp

5,360

724

Environmental

Control

-

.00

%

Republic

Services

Inc

11,649

2,469

Food

-

.24

%

Sprouts

Farmers

Market

Inc

(c) 7,543

601

Gas

-

.77

%

Atmos

Energy

Corp

11,329

1,899

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Healthcare

-

Products

-

.80

%

Abbott

Laboratories

5,602

$

702

Stryker

Corp

6,852

2,408

Thermo

Fisher

Scientific

Inc

6,510

3,772

$

6,882

Healthcare

-

Services

-

.67

%

HCA

Healthcare

Inc

3,540

1,653

Home

Builders

-

.49

%

DR

Horton

Inc

8,367

1,205

Insurance

-

.30

%

Berkshire

Hathaway

Inc

-

Class

B

(c) 4,976

2,501

Chubb

Ltd

6,213

1,939

Progressive

Corp/The

5,375

1,224

$

5,664

Internet

-

.22

%

Alphabet

Inc

-

A

Shares

41,828

13,092

Amazon.com

Inc

(c) 40,326

9,308

AppLovin

Corp

(c) 1,261

850

Meta

Platforms

Inc

8,135

5,370

Netflix

Inc

(c) 7,687

721

Palo

Alto

Networks

Inc

(c) 13,718

2,527

Reddit

Inc

(c) 9,264

2,129

Shopify

Inc

(c) 7,972

1,283

Spotify

Technology

SA

(c) 1,728

1,003

Uber

Technologies

Inc

(c) 14,487

1,184

$

37,467

Investment

Companies

-

.08

%

Riot

Platforms

Inc

(c) 16,281

Machinery

-

Construction

&

Mining

-

.17

%

BWX

Technologies

Inc

3,199

553

GE

Vernova

Inc

3,550

2,320

$

2,873

Machinery

-

Diversified

-

.99

%

Deere

&

Co

5,254

2,446

Media

-

.57

%

Nexstar

Media

Group

Inc

6,891

1,399

Mining

-

.50

%

Cameco

Corp

6,797

622

Freeport-McMoRan

Inc

12,234

621

$

1,243

Miscellaneous

Manufacturers

-

.08

%

Parker-Hannifin

Corp

3,012

2,647

Oil

&

Gas

-

.86

%

Expand

Energy

Corp

19,425

2,144

Exxon

Mobil

Corp

20,958

2,522

Marathon

Petroleum

Corp

14,634

2,380

$

7,046

Pharmaceuticals

-

.36

%

AbbVie

Inc

11,530

2,634

Eli

Lilly

&

Co

4,294

4,615

McKesson

Corp

4,206

3,450

Novartis

AG

ADR

18,112

2,497

$

13,196

Pipelines

-

.41

%

Kinder

Morgan

Inc

36,286

998

Private

Equity

-

.43

%

KKR

&

Co

Inc

8,232

1,049

REITs

-

.05

%

Regency

Centers

Corp

30,446

2,102

Ventas

Inc

6,195

$

2,581

Retail

-

.89

%

Casey's

General

Stores

Inc

6,978

3,857

Costco

Wholesale

Corp

3,597

3,102

Dick's

Sporting

Goods

Inc

3,979

788

Domino's

Pizza

Inc

2,350

979

O'Reilly

Automotive

Inc

(c) 19,907

1,815

Schedule

of

Investments

Principal

Capital

Appreciation

Account

December

31,

2025

See

accompanying

notes.

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Retail

(continued)

TJX

Cos

Inc/The

25,817

$

3,966

$

14,507

Semiconductors

-

.34

%

Broadcom

Inc

22,160

7,670

KLA

Corp

2,193

2,665

Lam

Research

Corp

14,819

2,537

NVIDIA

Corp

91,089

16,988

Taiwan

Semiconductor

Manufacturing

Co

Ltd

ADR

9,847

2,992

$

32,852

Software

-

.55

%

Broadridge

Financial

Solutions

Inc

5,519

1,232

Cloudflare

Inc

(c) 4,843

955

Datadog

Inc

(c) 6,108

831

Fair

Isaac

Corp

(c) 1,358

2,296

Microsoft

Corp

29,623

14,326

ServiceNow

Inc

(c) 2,905

Twilio

Inc

(c) 6,871

977

$

21,062

Telecommunications

-

.81

%

Arista

Networks

Inc

(c) 9,393

1,231

Motorola

Solutions

Inc

3,172

1,216

T-Mobile

US

Inc

9,846

1,999

$

4,446

TOTAL

COMMON

STOCKS

$

244,154

Total

Investments

$

246,269

Other

Assets

and

Liabilities

- (0.02)%

(43)

TOTAL

NET

ASSETS

-

100.00%

$

246,226

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b) 1-day

yield

shown

is

as

of

period

end.

(c) Non-income

producing

security

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

4,286

$

69,284

$

71,455

$

2,115

$

4,286

$

69,284

$

71,455

$

2,115

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

$

—

$

—

$

—

$

$

—

$

—

$

—

Amounts

in

thousands.

Schedule

of

Investments

Principal

LifeTime

2020

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.00

%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

-

.55

%

Blue

Chip

Fund

(a),(b)

89,641

$

3,770

Core

Fixed

Income

Fund

(a) 5,243,081

45,719

Diversified

Real

Asset

Fund

(a) 46,246

566

Global

Emerging

Markets

Fund

(a) 89,200

3,061

High

Yield

Fund

(a) 1,224,023

8,213

International

Equity

Fund

(a) 915,673

14,990

International

Small

Company

Fund

(a) 58,417

735

LargeCap

Growth

Fund

I

(a) 249,951

4,029

MidCap

Fund

(a),(b)

28,989

1,244

Real

Estate

Securities

Fund

(a) 79,170

2,195

SmallCap

Fund

(a) 79,403

2,473

SmallCap

S&P

600

Index

Fund

(a) 11,251

Small-MidCap

Dividend

Income

Fund

(a) 72,417

1,424

$

88,695

Principal

Funds,

Inc.

Institutional

Class

-

.45

%

Equity

Income

Fund

(a) 102,869

4,211

Inflation

Protection

Fund

(a) 938,303

7,197

LargeCap

S&P

500

Index

Fund

(a) 502,648

16,271

LargeCap

Value

Fund

III

(a) 225,896

3,917

Short-Term

Income

Fund

(a) 1,585,830

19,284

$

50,880

TOTAL

INVESTMENT

COMPANIES

$

139,575

Total

Investments

$

139,575

Other

Assets

and

Liabilities

- 0.00%

(3)

TOTAL

NET

ASSETS

-

100.00%

$

139,572

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b) Non-income

producing

security

Schedule

of

Investments

Principal

LifeTime

2020

Account

December

31,

2025

See

accompanying

notes.

Affiliated

Securities

December

31,

2024

Purchases

(a) Sales

(a) December

31,

2025

Value

Cost

Proceeds

Value

Blue

Chip

Fund

$

7,740

$

1,249

$

5,194

$

3,770

Core

Fixed

Income

Fund

46,291

9,886

11,909

45,719

Diversified

International

Fund

13,650

585

15,157

—

Diversified

Real

Asset

Fund

590

566

Equity

Income

Fund

6,793

1,204

4,260

4,211

Global

Emerging

Markets

Fund

1,504

1,523

3,061

High

Income

Fund

1,045

1,249

—

High

Yield

Fund

8,635

3,228

3,452

8,213

High

Yield

Fund

-

Institutional

Class

—

1,208

1,208

—

Inflation

Protection

Fund

7,483

1,661

2,102

7,197

International

Equity

Fund

—

17,184

4,958

14,990

International

Small

Company

Fund

997

757

735

LargeCap

Growth

Fund

I

7,746

1,130

5,097

4,029

LargeCap

S&P

500

Index

Fund

7,917

9,830

2,360

16,271

LargeCap

Value

Fund

III

6,831

1,467

4,287

3,917

MidCap

Fund

1,844

819

1,244

Real

Estate

Securities

Fund

2,576

699

2,195

Short-Term

Income

Fund

19,247

4,685

4,935

19,284

SmallCap

Fund

2,623

677

1,008

2,473

SmallCap

S&P

600

Index

Fund

Small-MidCap

Dividend

Income

Fund

1,599

593

1,424

$

145,437

$

57,250

$

71,131

$

139,575

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Blue

Chip

Fund

$

—

$

2,656

$

630

$

(2,681)

Core

Fixed

Income

Fund

1,752

(59)

—

1,510

Diversified

International

Fund

—

(1,564)

2,486

Diversified

Real

Asset

Fund

(10)

—

Equity

Income

Fund

1,388

(914)

Global

Emerging

Markets

Fund

521

High

Income

Fund

(5)

—

High

Yield

Fund

579

(17)

—

(181)

High

Yield

Fund

-

Institutional

Class

—

—

—

—

Inflation

Protection

Fund

(39)

—

International

Equity

Fund

569

—

2,356

International

Small

Company

Fund

(17)

—

LargeCap

Growth

Fund

I

518

(268)

LargeCap

S&P

500

Index

Fund

LargeCap

Value

Fund

III

991

598

(1,085)

MidCap

Fund

—

(55)

Real

Estate

Securities

Fund

(21)

(7)

Short-Term

Income

Fund

755

—

SmallCap

Fund

(2)

SmallCap

S&P

600

Index

Fund

(12)

Small-MidCap

Dividend

Income

Fund

(3)

$

4,659

$

4,664

$

2,759

$

3,355

Amounts

in

thousands.

(a) Purchases

and

Sales

include

transactions

related

to

the

acquisition

of

the

High

Income

Fund

by

the

High

Yield

Fund.

Schedule

of

Investments

Principal

LifeTime

2030

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.00

%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

-

.80

%

Blue

Chip

Fund

(a),(b)

294,829

$

12,401

Core

Fixed

Income

Fund

(a) 10,826,517

94,407

Diversified

Real

Asset

Fund

(a) 130,170

1,592

Global

Emerging

Markets

Fund

(a) 292,348

10,034

High

Yield

Fund

(a) 2,273,479

15,255

International

Equity

Fund

(a) 3,008,989

49,257

International

Small

Company

Fund

(a) 196,487

2,472

LargeCap

Growth

Fund

I

(a) 822,101

13,252

MidCap

Fund

(a),(b)

96,369

4,135

Real

Estate

Securities

Fund

(a) 193,663

5,368

SmallCap

Fund

(a) 262,622

8,181

SmallCap

S&P

600

Index

Fund

(a) 36,354

893

Small-MidCap

Dividend

Income

Fund

(a) 239,684

4,712

$

221,959

Principal

Funds,

Inc.

Institutional

Class

-

.20

%

Equity

Income

Fund

(a) 338,356

13,852

Inflation

Protection

Fund

(a) 1,639,453

12,574

LargeCap

S&P

500

Index

Fund

(a) 1,655,813

53,599

LargeCap

Value

Fund

III

(a) 742,716

12,879

Short-Term

Income

Fund

(a) 1,429,910

17,388

$

110,292

TOTAL

INVESTMENT

COMPANIES

$

332,251

Total

Investments

$

332,251

Other

Assets

and

Liabilities

- 0.00%

(5)

TOTAL

NET

ASSETS

-

100.00%

$

332,246

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b) Non-income

producing

security

Schedule

of

Investments

Principal

LifeTime

2030

Account

December

31,

2025

See

accompanying

notes.

Affiliated

Securities

December

31,

2024

Purchases

(a) Sales

(a) December

31,

2025

Value

Cost

Proceeds

Value

Blue

Chip

Fund

$

22,069

$

4,239

$

13,687

$

12,401

Core

Fixed

Income

Fund

81,727

21,974

11,976

94,407

Diversified

International

Fund

39,067

1,116

42,853

—

Diversified

Real

Asset

Fund

1,404

1,592

Equity

Income

Fund

19,480

4,006

11,054

13,852

Global

Emerging

Markets

Fund

4,215

5,008

770

10,034

High

Income

Fund

1,653

1,977

—

High

Yield

Fund

13,646

5,765

3,842

15,255

High

Yield

Fund

-

Institutional

Class

—

1,911

1,911

—

Inflation

Protection

Fund

10,989

3,215

1,806

12,574

International

Equity

Fund

—

51,376

10,492

49,257

International

Small

Company

Fund

2,721

847

1,631

2,472

LargeCap

Growth

Fund

I

22,111

3,866

13,426

13,252

LargeCap

S&P

500

Index

Fund

21,793

33,635

4,399

53,599

LargeCap

Value

Fund

III

19,579

4,883

11,189

12,879

MidCap

Fund

5,269

905

1,893

4,135

Real

Estate

Securities

Fund

5,378

868

803

5,368

Short-Term

Income

Fund

12,955

6,248

2,024

17,388

SmallCap

Fund

7,202

1,987

1,638

8,181

SmallCap

S&P

600

Index

Fund

872

1,017

980

893

Small-MidCap

Dividend

Income

Fund

4,591

1,023

1,160

4,712

$

296,721

$

154,157

$

139,714

$

332,251

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Blue

Chip

Fund

$

—

$

2,771

$

2,046

$

(2,991)

Core

Fixed

Income

Fund

3,318

—

2,681

Diversified

International

Fund

—

2,265

582

Diversified

Real

Asset

Fund

—

Equity

Income

Fund

1,006

1,045

Global

Emerging

Markets

Fund

1,576

High

Income

Fund

(7)

—

High

Yield

Fund

991

(18)

—

(296)

High

Yield

Fund

-

Institutional

Class

—

—

—

—

Inflation

Protection

Fund

565

—

—

International

Equity

Fund

1,850

778

—

7,595

International

Small

Company

Fund

(8)

—

543

LargeCap

Growth

Fund

I

754

1,421

(53)

LargeCap

S&P

500

Index

Fund

518

1,025

2,487

LargeCap

Value

Fund

III

955

1,942

(1,349)

MidCap

Fund

—

(166)

Real

Estate

Securities

Fund

—

(75)

Short-Term

Income

Fund

585

—

—

SmallCap

Fund

627

SmallCap

S&P

600

Index

Fund

(38)

Small-MidCap

Dividend

Income

Fund

(2)

$

9,400

$

8,629

$

8,883

$

12,458

Amounts

in

thousands.

(a) Purchases

and

Sales

include

transactions

related

to

the

acquisition

of

the

High

Income

Fund

by

the

High

Yield

Fund.

Schedule

of

Investments

Principal

LifeTime

2040

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.00

%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

-

.20

%

Blue

Chip

Fund

(a),(b)

276,141

$

11,614

Core

Fixed

Income

Fund

(a) 4,980,027

43,426

Global

Emerging

Markets

Fund

(a) 272,668

9,358

High

Yield

Fund

(a) 1,107,880

7,434

International

Equity

Fund

(a) 2,812,803

46,046

International

Small

Company

Fund

(a) 187,534

2,359

LargeCap

Growth

Fund

I

(a) 770,050

12,413

MidCap

Fund

(a),(b)

91,069

3,908

Real

Estate

Securities

Fund

(a) 165,775

4,595

SmallCap

Fund

(a) 246,991

7,694

SmallCap

S&P

600

Index

Fund

(a) 33,619

826

Small-MidCap

Dividend

Income

Fund

(a) 225,346

4,430

$

154,103

Principal

Funds,

Inc.

Institutional

Class

-

.80

%

Equity

Income

Fund

(a) 316,967

12,977

LargeCap

S&P

500

Index

Fund

(a) 1,549,721

50,165

LargeCap

Value

Fund

III

(a) 695,794

12,065

$

75,207

TOTAL

INVESTMENT

COMPANIES

$

229,310

Total

Investments

$

229,310

Other

Assets

and

Liabilities

- 0.00%

(5)

TOTAL

NET

ASSETS

-

100.00%

$

229,305

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b) Non-income

producing

security

Affiliated

Securities

December

31,

2024

Purchases

(a) Sales

(a) December

31,

2025

Value

Cost

Proceeds

Value

Blue

Chip

Fund

$

17,589

$

5,290

$

10,902

$

11,614

Core

Fixed

Income

Fund

29,668

15,875

3,174

43,426

Diversified

International

Fund

31,392

1,388

34,956

—

Equity

Income

Fund

15,623

5,042

8,889

12,977

Global

Emerging

Markets

Fund

3,320

5,064

9,358

High

Income

Fund

611

787

—

High

Yield

Fund

5,278

3,393

1,067

7,434

High

Yield

Fund

-

Institutional

Class

—

762

762

—

International

Equity

Fund

—

45,574

6,840

46,046

International

Small

Company

Fund

2,312

1,063

1,504

2,359

LargeCap

Growth

Fund

I

17,629

4,949

10,677

12,413

LargeCap

S&P

500

Index

Fund

17,588

32,952

2,631

50,165

LargeCap

Value

Fund

III

15,700

5,882

9,051

12,065

MidCap

Fund

4,403

1,251

1,582

3,908

Real

Estate

Securities

Fund

3,957

1,116

4,595

SmallCap

Fund

5,916

2,336

1,127

7,694

SmallCap

S&P

600

Index

Fund

739

874

769

826

Small-MidCap

Dividend

Income

Fund

3,788

1,221

806

4,430

$

175,513

$

134,039

$

96,322

$

229,310

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Blue

Chip

Fund

$

—

$

1,507

$

1,905

$

(1,870)

Core

Fixed

Income

Fund

1,368

—

—

1,057

Diversified

International

Fund

—

796

1,380

Equity

Income

Fund

974

758

Global

Emerging

Markets

Fund

1,368

High

Income

Fund

(3)

—

High

Yield

Fund

(4)

—

(166)

High

Yield

Fund

-

Institutional

Class

—

—

—

—

International

Equity

Fund

1,724

—

7,018

International

Small

Company

Fund

(5)

—

LargeCap

Growth

Fund

I

1,328

LargeCap

S&P

500

Index

Fund

958

2,254

LargeCap

Value

Fund

III

1,815

(836)

MidCap

Fund

—

(167)

Real

Estate

Securities

Fund

—

(75)

SmallCap

Fund

(7)

576

SmallCap

S&P

600

Index

Fund

(36)

Small-MidCap

Dividend

Income

Fund

—

$

5,373

$

3,804

$

8,228

$

12,276

Amounts

in

thousands.

(a) Purchases

and

Sales

include

transactions

related

to

the

acquisition

of

the

High

Income

Fund

by

the

High

Yield

Fund.

Schedule

of

Investments

Principal

LifeTime

2050

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.00

%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

-

.89

%

Blue

Chip

Fund

(a),(b)

148,571

$

6,249

Core

Fixed

Income

Fund

(a) 473,702

4,131

Global

Emerging

Markets

Fund

(a) 146,342

5,022

High

Yield

Fund

(a) 176,229

1,183

International

Equity

Fund

(a) 1,509,684

24,714

International

Small

Company

Fund

(a) 100,674

1,266

LargeCap

Growth

Fund

I

(a) 414,008

6,674

MidCap

Fund

(a),(b)

48,816

2,095

Real

Estate

Securities

Fund

(a) 69,687

1,932

SmallCap

Fund

(a) 132,501

4,127

SmallCap

S&P

600

Index

Fund

(a) 17,918

Small-MidCap

Dividend

Income

Fund

(a) 121,169

2,382

$

60,215

Principal

Funds,

Inc.

Institutional

Class

-

.11

%

Equity

Income

Fund

(a) 170,402

6,976

LargeCap

S&P

500

Index

Fund

(a) 829,811

26,861

LargeCap

Value

Fund

III

(a) 374,176

6,488

$

40,325

TOTAL

INVESTMENT

COMPANIES

$

100,540

Total

Investments

$

100,540

Other

Assets

and

Liabilities

- 0.00%

(4)

TOTAL

NET

ASSETS

-

100.00%

$

100,536

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b) Non-income

producing

security

Affiliated

Securities

December

31,

2024

Purchases

(a) Sales

(a) December

31,

2025

Value

Cost

Proceeds

Value

Blue

Chip

Fund

$

9,954

$

2,535

$

6,077

$

6,249

Core

Fixed

Income

Fund

2,736

1,830

530

4,131

Diversified

International

Fund

17,701

639

19,560

—

Equity

Income

Fund

8,836

2,496

5,023

6,976

Global

Emerging

Markets

Fund

1,874

2,737

5,022

High

Income

Fund

—

High

Yield

Fund

832

589

1,183

High

Yield

Fund

-

Institutional

Class

—

—

International

Equity

Fund

—

24,846

4,112

24,714

International

Small

Company

Fund

1,280

518

789

1,266

LargeCap

Growth

Fund

I

9,982

2,351

5,957

6,674

LargeCap

S&P

500

Index

Fund

9,879

17,534

1,776

26,861

LargeCap

Value

Fund

III

8,875

2,950

5,105

6,488

MidCap

Fund

2,531

581

939

2,095

Real

Estate

Securities

Fund

1,833

1,932

SmallCap

Fund

3,338

1,315

822

4,127

SmallCap

S&P

600

Index

Fund

505

Small-MidCap

Dividend

Income

Fund

2,189

550

2,382

$

82,363

$

62,512

$

52,732

$

100,540

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Blue

Chip

Fund

$

—

$

822

$

1,026

$

(985)

Core

Fixed

Income

Fund

—

—

Diversified

International

Fund

—

999

Equity

Income

Fund

524

Global

Emerging

Markets

Fund

742

High

Income

Fund

(1)

—

High

Yield

Fund

—

—

(26)

High

Yield

Fund

-

Institutional

Class

—

—

—

—

International

Equity

Fund

928

—

3,776

International

Small

Company

Fund

—

LargeCap

Growth

Fund

I

713

LargeCap

S&P

500

Index

Fund

512

1,200

LargeCap

Value

Fund

III

975

(437)

MidCap

Fund

—

(88)

Real

Estate

Securities

Fund

—

—

(29)

SmallCap

Fund

SmallCap

S&P

600

Index

Fund

(18)

Small-MidCap

Dividend

Income

Fund

—

$

2,101

$

1,911

$

4,427

$

6,486

Amounts

in

thousands.

(a) Purchases

and

Sales

include

transactions

related

to

the

acquisition

of

the

High

Income

Fund

by

the

High

Yield

Fund.

Schedule

of

Investments

Principal

LifeTime

2060

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.01

%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

-

.02

%

Blue

Chip

Fund

(a),(b)

61,483

$

2,586

Core

Fixed

Income

Fund

(a) 106,562

929

Global

Emerging

Markets

Fund

(a) 59,731

2,050

High

Yield

Fund

(a) 45,207

International

Equity

Fund

(a) 619,221

10,137

International

Small

Company

Fund

(a) 43,141

543

LargeCap

Growth

Fund

I

(a) 171,142

2,759

MidCap

Fund

(a),(b)

20,489

879

Real

Estate

Securities

Fund

(a) 28,355

786

SmallCap

Fund

(a) 55,079

1,716

SmallCap

S&P

600

Index

Fund

(a) 7,131

Small-MidCap

Dividend

Income

Fund

(a) 50,424

991

$

23,854

Principal

Funds,

Inc.

Institutional

Class

-

.99

%

Equity

Income

Fund

(a) 70,441

2,884

LargeCap

S&P

500

Index

Fund

(a) 339,872

11,002

LargeCap

Value

Fund

III

(a) 154,759

2,683

$

16,569

TOTAL

INVESTMENT

COMPANIES

$

40,423

Total

Investments

$

40,423

Other

Assets

and

Liabilities

- (0.01)%

(4)

TOTAL

NET

ASSETS

-

100.00%

$

40,419

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b) Non-income

producing

security

Affiliated

Securities

December

31,

2024

Purchases

(a) Sales

(a) December

31,

2025

Value

Cost

Proceeds

Value

Blue

Chip

Fund

$

3,552

$

1,569

$

2,426

$

2,586

Core

Fixed

Income

Fund

822

929

Diversified

International

Fund

6,429

7,210

—

Equity

Income

Fund

3,198

1,493

2,044

2,884

Global

Emerging

Markets

Fund

694

1,246

2,050

High

Income

Fund

—

—

High

Yield

Fund

High

Yield

Fund

-

Institutional

Class

—

—

International

Equity

Fund

—

10,145

1,503

10,137

International

Small

Company

Fund

543

LargeCap

Growth

Fund

I

3,565

1,495

2,380

2,759

LargeCap

S&P

500

Index

Fund

3,547

7,726

731

11,002

LargeCap

Value

Fund

III

3,209

1,687

2,087

2,683

MidCap

Fund

895

879

Real

Estate

Securities

Fund

668

786

SmallCap

Fund

1,256

759

1,716

SmallCap

S&P

600

Index

Fund

Small-MidCap

Dividend

Income

Fund

789

991

$

29,548

$

28,676

$

20,806

$

40,423

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Blue

Chip

Fund

$

—

$

$

$

(230)

Core

Fixed

Income

Fund

—

—

Diversified

International

Fund

—

Equity

Income

Fund

Global

Emerging

Markets

Fund

—

High

Income

Fund

—

—

—

High

Yield

Fund

—

—

(6)

High

Yield

Fund

-

Institutional

Class

—

—

—

—

International

Equity

Fund

—

1,469

International

Small

Company

Fund

(3)

—

LargeCap

Growth

Fund

I

LargeCap

S&P

500

Index

Fund

LargeCap

Value

Fund

III

(163)

MidCap

Fund

—

—

(35)

Real

Estate

Securities

Fund

—

—

(14)

SmallCap

Fund

(1)

SmallCap

S&P

600

Index

Fund

(9)

Small-MidCap

Dividend

Income

Fund

(1)

$

828

$

$

1,807

$

2,593

Amounts

in

thousands.

(a) Purchases

and

Sales

include

transactions

related

to

the

acquisition

of

the

High

Income

Fund

by

the

High

Yield

Fund.

Schedule

of

Investments

Principal

LifeTime

Strategic

Income

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.00

%

Shares

Held

Value

(000's)

Principal

Funds,

Inc.

Class

-

.68

%

Blue

Chip

Fund

(a),(b)

30,028

$

1,263

Core

Fixed

Income

Fund

(a) 2,162,439

18,856

Diversified

Real

Asset

Fund

(a) 18,894

Global

Emerging

Markets

Fund

(a) 29,779

1,022

High

Yield

Fund

(a) 523,933

3,516

International

Equity

Fund

(a) 306,254

5,013

International

Small

Company

Fund

(a) 19,709

LargeCap

Growth

Fund

I

(a) 83,721

1,349

MidCap

Fund

(a),(b)

9,737

Real

Estate

Securities

Fund

(a) 31,623

877

SmallCap

Fund

(a) 26,708

832

SmallCap

S&P

600

Index

Fund

(a) 3,730

Small-MidCap

Dividend

Income

Fund

(a) 24,297

$

34,195

Principal

Funds,

Inc.

Institutional

Class

-

.32

%

Equity

Income

Fund

(a) 34,458

1,410

Inflation

Protection

Fund

(a) 401,698

3,081

LargeCap

S&P

500

Index

Fund

(a) 167,988

5,438

LargeCap

Value

Fund

III

(a) 75,650

1,312

Short-Term

Income

Fund

(a) 749,680

9,116

$

20,357

TOTAL

INVESTMENT

COMPANIES

$

54,552

Total

Investments

$

54,552

Other

Assets

and

Liabilities

- 0.00%

(2)

TOTAL

NET

ASSETS

-

100.00%

$

54,550

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b) Non-income

producing

security

Schedule

of

Investments

Principal

LifeTime

Strategic

Income

Account

December

31,

2025

See

accompanying

notes.

Affiliated

Securities

December

31,

2024

Purchases

(a) Sales

(a) December

31,

2025

Value

Cost

Proceeds

Value

Blue

Chip

Fund

$

2,327

$

$

1,532

$

1,263

Core

Fixed

Income

Fund

18,193

4,443

4,367

18,856

Diversified

International

Fund

4,150

4,582

—

Diversified

Real

Asset

Fund

Equity

Income

Fund

2,054

516

1,308

1,410

Global

Emerging

Markets

Fund

543

1,022

High

Income

Fund

531

—

High

Yield

Fund

3,557

1,404

1,359

3,516

High

Yield

Fund

-

Institutional

Class

—

514

514

—

Inflation

Protection

Fund

3,101

734

818

3,081

International

Equity

Fund

—

5,527

1,375

5,013

International

Small

Company

Fund

LargeCap

Growth

Fund

I

2,329

1,501

1,349

LargeCap

S&P

500

Index

Fund

2,317

3,443

589

5,438

LargeCap

Value

Fund

III

2,064

606

1,322

1,312

MidCap

Fund

589

Real

Estate

Securities

Fund

952

877

Short-Term

Income

Fund

9,059

2,149

2,228

9,116

SmallCap

Fund

807

832

SmallCap

S&P

600

Index

Fund

Small-MidCap

Dividend

Income

Fund

514

$

53,523

$

21,885

$

23,509

$

54,552

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Blue

Chip

Fund

$

—

$

677

$

$

(700)

Core

Fixed

Income

Fund

699

—

577

Diversified

International

Fund

—

(316)

600

Diversified

Real

Asset

Fund

—

Equity

Income

Fund

(83)

Global

Emerging

Markets

Fund

High

Income

Fund

(2)

High

Yield

Fund

(8)

—

(78)

High

Yield

Fund

-

Institutional

Class

—

—

—

—

Inflation

Protection

Fund

—

—

International

Equity

Fund

—

774

International

Small

Company

Fund

—

LargeCap

Growth

Fund

I

(55)

LargeCap

S&P

500

Index

Fund

LargeCap

Value

Fund

III

(95)

MidCap

Fund

—

(17)

Real

Estate

Securities

Fund

(2)

—

(9)

Short-Term

Income

Fund

(1)

—

SmallCap

Fund

(2)

SmallCap

S&P

600

Index

Fund

(3)

Small-MidCap

Dividend

Income

Fund

(2)

$

1,847

$

705

$

908

$

1,948

Amounts

in

thousands.

(a) Purchases

and

Sales

include

transactions

related

to

the

acquisition

of

the

High

Income

Fund

by

the

High

Yield

Fund.

Schedule

of

Investments

Real

Estate

Securities

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.57

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

.57

%

Principal

Government

Money

Market

Fund

-

Class

3.67%

(a),(b)

1,413,364

$

1,413

TOTAL

INVESTMENT

COMPANIES

$

1,413

COMMON

STOCKS

-

.01

%

Shares

Held

Value

(000's)

Lodging

-

.05

%

Hilton

Worldwide

Holdings

Inc

8,715

$

2,504

Hyatt

Hotels

Corp

16,092

2,580

$

5,084

REITs

-

.96

%

Agree

Realty

Corp

50,967

3,671

American

Healthcare

REIT

Inc

81,226

3,823

American

Homes

Rent

194,857

6,255

American

Tower

Corp

123,503

21,683

AvalonBay

Communities

Inc

65,503

11,876

Cousins

Properties

Inc

157,706

4,066

Crown

Castle

Inc

73,505

6,532

Digital

Realty

Trust

Inc

50,731

7,849

EastGroup

Properties

Inc

29,657

5,283

Equinix

Inc

26,370

20,204

Equity

LifeStyle

Properties

Inc

58,222

3,529

Essex

Property

Trust

Inc

22,353

5,849

Extra

Space

Storage

Inc

89,972

11,716

Gaming

and

Leisure

Properties

Inc

102,307

4,572

Healthpeak

Properties

Inc

406,446

6,536

Hudson

Pacific

Properties

Inc

(c) 48,240

522

InvenTrust

Properties

Corp

89,780

2,533

Invitation

Homes

Inc

239,559

6,657

Iron

Mountain

Inc

59,241

4,914

Kilroy

Realty

Corp

78,807

2,945

National

Health

Investors

Inc

33,690

2,573

NETSTREIT

Corp

177,982

3,140

Prologis

Inc

125,526

16,025

Regency

Centers

Corp

121,573

8,392

Rexford

Industrial

Realty

Inc

151,782

5,877

Ryman

Hospitality

Properties

Inc

27,955

2,645

Sabra

Health

Care

REIT

Inc

325,986

6,174

Saul

Centers

Inc

5,334

Simon

Property

Group

Inc

36,308

6,721

Smartstop

Self

Storage

REIT

Inc

41,627

1,288

Ventas

Inc

217,180

16,805

VICI

Properties

Inc

52,999

1,490

Vornado

Realty

Trust

85,146

2,834

Welltower

Inc

127,561

23,676

Weyerhaeuser

Co

73,953

1,752

$

240,575

TOTAL

COMMON

STOCKS

$

245,659

Total

Investments

$

247,072

Other

Assets

and

Liabilities

- 0.42%

1,043

TOTAL

NET

ASSETS

-

100.00%

$

248,115

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b) 1-day

yield

shown

is

as

of

period

end.

(c) Non-income

producing

security

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

6,031

$

36,093

$

40,711

$

1,413

$

6,031

$

36,093

$

40,711

$

1,413

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

$

—

$

—

$

—

$

$

—

$

—

$

—

Amounts

in

thousands.

Schedule

of

Investments

SAM

Balanced

Portfolio

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.00

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

.98

%

Principal

Government

Money

Market

Fund

-

Class

3.67%

(a),(b)

11,097,581

$

11,098

Principal

Exchange-Traded

Funds

-

.97

%

Principal

International

Equity

ETF

(a) 1,013,853

33,417

Principal

U.S.

Mega-Cap

ETF

(a) 1,014,807

69,463

Principal

U.S.

Small-Cap

ETF

(a) 354,600

20,471

$

123,351

Principal

Funds,

Inc.

Class

-

.54

%

Blue

Chip

Fund

(a),(c)

228,938

9,629

Core

Fixed

Income

Fund

(a) 7,709,849

67,230

Diversified

Real

Asset

Fund

(a) 658,618

8,055

Global

Emerging

Markets

Fund

(a) 724,009

24,848

Global

Macro

Fund

(a) 577,436

5,786

High

Yield

Fund

(a) 3,588,350

24,078

International

Equity

Index

Fund

(a) 2,348,950

32,697

International

Small

Company

Fund

(a) 386,798

4,866

LargeCap

Growth

Fund

I

(a) 519,912

8,381

Small-MidCap

Dividend

Income

Fund

(a) 430,619

8,466

Spectrum

Preferred

and

Capital

Securities

Income

Fund

(a) 1,187,972

11,119

$

205,155

Principal

Funds,

Inc.

Institutional

Class

-

.68

%

Bond

Market

Index

Fund

(a) 2,933,106

25,019

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

(a) 1,317,879

12,731

Global

Listed

Infrastructure

Fund

(a) 232,101

2,716

Inflation

Protection

Fund

(a) 1,812,076

13,899

LargeCap

S&P

500

Index

Fund

(a) 353,519

11,444

LargeCap

Value

Fund

III

(a) 1,153,100

19,995

Overseas

Fund

(a) 2,532,996

29,661

Principal

Capital

Appreciation

Fund

(a) 557,880

48,012

Short-Term

Income

Fund

(a) 1,181,284

14,364

$

177,841

Principal

Variable

Contracts

Funds,

Inc. Class

-

.83

%

Equity

Income

Account

(a) 1,016,782

32,293

Government

&

High

Quality

Bond

Account

(a) 712,390

6,098

MidCap

Account

(a) 38,626

2,397

Real

Estate

Securities

Account

(a) 180,750

3,159

$

43,947

TOTAL

INVESTMENT

COMPANIES

$

561,392

Total

Investments

$

561,392

Other

Assets

and

Liabilities

- 0.00%

TOTAL

NET

ASSETS

-

100.00%

$

561,417

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b) 1-day

yield

shown

is

as

of

period

end.

(c) Non-income

producing

security

Schedule

of

Investments

SAM

Balanced

Portfolio

December

31,

2025

See

accompanying

notes.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Blue

Chip

Fund

$

30,669

$

1,725

$

23,319

$

9,629

Bond

Market

Index

Fund

29,595

7,597

13,483

25,019

Core

Fixed

Income

Fund

95,295

3,790

34,307

67,230

Diversified

International

Fund

19,951

21,870

—

Diversified

Real

Asset

Fund

16,308

614

10,257

8,055

Equity

Income

Account

41,295

20,992

31,469

32,293

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

11,079

4,791

4,022

12,731

Global

Emerging

Markets

Fund

12,289

12,638

3,560

24,848

Global

Listed

Infrastructure

Fund

—

2,874

2,716

Global

Macro

Fund

—

5,774

—

5,786

Government

&

High

Quality

Bond

Account

7,468

2,018

6,098

High

Yield

Fund

15,304

12,810

4,080

24,078

Inflation

Protection

Fund

11,514

4,650

2,538

13,899

International

Equity

Index

Fund

2,598

34,005

4,376

32,697

International

Small

Company

Fund

5,236

1,882

4,866

LargeCap

Growth

Fund

I

20,291

10,267

24,140

8,381

LargeCap

S&P

500

Index

Fund

12,449

544

3,161

11,444

LargeCap

Value

Fund

III

32,339

3,898

15,196

19,995

MidCap

Account

22,905

21,433

2,397

Overseas

Fund

19,033

25,903

18,554

29,661

Principal

Capital

Appreciation

Fund

53,194

19,753

29,198

48,012

Principal

Government

Money

Market

Fund

-

Class

3.67%

4,522

18,828

12,252

11,098

Principal

International

Equity

ETF

—

31,092

2,360

33,417

Principal

U.S.

Mega-Cap

ETF

66,922

16,821

25,385

69,463

Principal

U.S.

Small-Cap

ETF

16,591

10,730

8,182

20,471

Principal

Value

ETF

—

7,462

7,304

—

Real

Estate

Securities

Account

3,947

950

3,159

Short-Term

Income

Fund

10,561

7,235

3,622

14,364

Small-MidCap

Dividend

Income

Fund

8,809

3,157

3,818

8,466

Spectrum

Preferred

and

Capital

Securities

Income

Fund

14,984

989

5,167

11,119

$

585,148

$

270,741

$

338,101

$

561,392

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Blue

Chip

Fund

$

—

$

16,211

$

1,617

$

(15,657)

Bond

Market

Index

Fund

984

—

1,252

Core

Fixed

Income

Fund

2,962

(3,884)

—

6,336

Diversified

International

Fund

—

4,271

(2,812)

Diversified

Real

Asset

Fund

533

—

930

Equity

Income

Account

1,011

6,980

4,591

(5,505)

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

668

(551)

—

1,434

Global

Emerging

Markets

Fund

3,328

Global

Listed

Infrastructure

Fund

Global

Macro

Fund

—

—

Government

&

High

Quality

Bond

Account

(74)

—

High

Yield

Fund

1,509

(37)

—

Inflation

Protection

Fund

626

(285)

—

558

International

Equity

Index

Fund

841

International

Small

Company

Fund

—

1,065

LargeCap

Growth

Fund

I

2,245

905

(282)

LargeCap

S&P

500

Index

Fund

851

761

LargeCap

Value

Fund

III

567

680

3,040

(1,726)

MidCap

Account

1,833

(1,393)

Overseas

Fund

1,143

1,540

2,815

Principal

Capital

Appreciation

Fund

4,349

3,583

(86)

Principal

Government

Money

Market

Fund

-

Class

3.67%

—

—

—

Principal

International

Equity

ETF

—

4,621

Principal

U.S.

Mega-Cap

ETF

637

4,504

—

6,601

Principal

U.S.

Small-Cap

ETF

1,531

—

(199)

Principal

Value

ETF

(158)

—

—

Real

Estate

Securities

Account

(10)

(119)

Short-Term

Income

Fund

(6)

—

Small-MidCap

Dividend

Income

Fund

Spectrum

Preferred

and

Capital

Securities

Income

Fund

767

(348)

—

661

$

15,098

$

39,894

$

16,850

$

3,710

Amounts

in

thousands.

Schedule

of

Investments

SAM

Balanced

Portfolio

December

31,

2025

See

accompanying

notes.

Futures

Contracts

Description

and

Expiration

Date

Type

Contracts

Notional

Amount

Value

and

Unrealized

Appreciation/(Depreciation)

Australia

Year

Bond;

March

2026

Long

$

$

—

Canada

Year

Bond;

March

2026

Long

(4)

Euro

Bond

Year

Bond;

March

2026

Long

750

(6)

Euro-BTP;

March

2026

Long

1,695

(4)

Euro-Oat;

March

2026

Long

1,275

(6)

Japan

Year

Bond

TSE;

March

2026

Long

3,381

(25)

UK

Year

Gilt;

March

2026

Long

1,109

Total

$

(31)

Amounts

in

thousands

except

contracts.

Schedule

of

Investments

SAM

Conservative

Balanced

Portfolio

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.95

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

.95

%

Principal

Government

Money

Market

Fund

-

Class

3.67%

(a),(b)

7,992,872

$

7,993

Principal

Exchange-Traded

Funds

-

.02

%

Principal

International

Equity

ETF

(a) 177,241

5,842

Principal

U.S.

Mega-Cap

ETF

(a) 197,030

13,487

Principal

U.S.

Small-Cap

ETF

(a) 57,200

3,302

$

22,631

Principal

Funds,

Inc.

Class

-

.80

%

Blue

Chip

Fund

(a),(c)

51,058

2,147

Core

Fixed

Income

Fund

(a) 4,161,898

36,292

Diversified

Real

Asset

Fund

(a) 151,410

1,852

Global

Emerging

Markets

Fund

(a) 134,906

4,630

Global

Macro

Fund

(a) 163,406

1,637

High

Yield

Fund

(a) 1,327,015

8,904

International

Equity

Index

Fund

(a) 419,102

5,834

International

Small

Company

Fund

(a) 71,524

900

LargeCap

Growth

Fund

I

(a) 72,880

1,175

Small-MidCap

Dividend

Income

Fund

(a) 88,563

1,741

Spectrum

Preferred

and

Capital

Securities

Income

Fund

(a) 427,088

3,998

$

69,110

Principal

Funds,

Inc.

Institutional

Class

-

.06

%

Bond

Market

Index

Fund

(a) 1,173,920

10,013

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

(a) 916,037

8,849

Global

Listed

Infrastructure

Fund

(a) 63,799

746

Inflation

Protection

Fund

(a) 806,477

6,186

LargeCap

S&P

500

Index

Fund

(a) 71,313

2,308

LargeCap

Value

Fund

III

(a) 93,758

1,626

Overseas

Fund

(a) 455,182

5,330

Principal

Capital

Appreciation

Fund

(a) 88,787

7,641

Short-Term

Income

Fund

(a) 480,810

5,847

$

48,546

Principal

Variable

Contracts

Funds,

Inc. Class

-

.12

%

Equity

Income

Account

(a) 251,506

7,988

Government

&

High

Quality

Bond

Account

(a) 407,316

3,486

MidCap

Account

(a) 9,390

583

Real

Estate

Securities

Account

(a) 60,550

1,058

$

13,115

TOTAL

INVESTMENT

COMPANIES

$

161,395

Total

Investments

$

161,395

Other

Assets

and

Liabilities

- 0.05%

TOTAL

NET

ASSETS

-

100.00%

$

161,481

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b) 1-day

yield

shown

is

as

of

period

end.

(c) Non-income

producing

security

Schedule

of

Investments

SAM

Conservative

Balanced

Portfolio

December

31,

2025

See

accompanying

notes.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Blue

Chip

Fund

$

6,845

$

$

5,290

$

2,147

Bond

Market

Index

Fund

14,986

3,616

9,272

10,013

Core

Fixed

Income

Fund

45,030

4,607

14,526

36,292

Diversified

International

Fund

3,846

4,195

—

Diversified

Real

Asset

Fund

3,633

2,542

1,852

Equity

Income

Account

9,991

3,755

6,244

7,988

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

7,515

2,320

1,645

8,849

Global

Emerging

Markets

Fund

2,402

2,608

1,012

4,630

Global

Listed

Infrastructure

Fund

—

833

746

Global

Macro

Fund

—

1,634

—

1,637

Government

&

High

Quality

Bond

Account

3,968

599

1,230

3,486

High

Yield

Fund

4,654

5,732

1,512

8,904

Inflation

Protection

Fund

6,104

1,366

1,413

6,186

International

Equity

Index

Fund

709

5,661

686

5,834

International

Small

Company

Fund

861

900

LargeCap

Growth

Fund

I

2,057

1,166

1,175

LargeCap

S&P

500

Index

Fund

2,422

715

1,153

2,308

LargeCap

Value

Fund

III

2,866

1,543

1,626

MidCap

Account

2,904

2,560

583

Overseas

Fund

2,478

3,070

748

5,330

Principal

Capital

Appreciation

Fund

9,654

4,566

7,378

7,641

Principal

Government

Money

Market

Fund

-

Class

3.67%

1,525

9,741

3,273

7,993

Principal

International

Equity

ETF

—

5,328

5,842

Principal

U.S.

Mega-Cap

ETF

12,488

3,338

4,414

13,487

Principal

U.S.

Small-Cap

ETF

2,728

1,940

1,561

3,302

Principal

Value

ETF

—

1,561

1,537

—

Real

Estate

Securities

Account

1,127

1,058

Short-Term

Income

Fund

4,417

2,543

1,186

5,847

Small-MidCap

Dividend

Income

Fund

2,787

1,389

1,741

Spectrum

Preferred

and

Capital

Securities

Income

Fund

5,408

1,166

2,700

3,998

$

163,405

$

69,378

$

81,428

$

161,395

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Blue

Chip

Fund

$

—

$

3,665

$

$

(3,572)

Bond

Market

Index

Fund

—

649

Core

Fixed

Income

Fund

1,469

(1,680)

—

2,861

Diversified

International

Fund

—

833

(559)

Diversified

Real

Asset

Fund

—

Equity

Income

Account

1,622

944

(1,136)

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

(224)

—

883

Global

Emerging

Markets

Fund

580

Global

Listed

Infrastructure

Fund

—

Global

Macro

Fund

—

—

Government

&

High

Quality

Bond

Account

(45)

—

High

Yield

Fund

(1)

—

Inflation

Protection

Fund

(148)

—

International

Equity

Index

Fund

(4)

International

Small

Company

Fund

—

LargeCap

Growth

Fund

I

(76)

LargeCap

S&P

500

Index

Fund

LargeCap

Value

Fund

III

(214)

MidCap

Account

(31)

Overseas

Fund

(17)

547

Principal

Capital

Appreciation

Fund

1,100

565

(301)

Principal

Government

Money

Market

Fund

-

Class

3.67%

—

—

—

Principal

International

Equity

ETF

—

865

Principal

U.S.

Mega-Cap

ETF

698

—

1,377

Principal

U.S.

Small-Cap

ETF

—

(287)

Principal

Value

ETF

(24)

—

—

Real

Estate

Securities

Account

(9)

(34)

Short-Term

Income

Fund

(3)

—

Small-MidCap

Dividend

Income

Fund

Spectrum

Preferred

and

Capital

Securities

Income

Fund

(131)

—

$

5,015

$

6,973

$

2,835

$

3,067

Amounts

in

thousands.

Schedule

of

Investments

SAM

Conservative

Balanced

Portfolio

December

31,

2025

See

accompanying

notes.

Futures

Contracts

Description

and

Expiration

Date

Type

Contracts

Notional

Amount

Value

and

Unrealized

Appreciation/(Depreciation)

Australia

Year

Bond;

March

2026

Long

$

$

—

Canada

Year

Bond;

March

2026

Long

(3)

Euro

Bond

Year

Bond;

March

2026

Long

600

(5)

Euro-BTP;

March

2026

Long

1,271

(3)

Euro-Oat;

March

2026

Long

992

(5)

Japan

Year

Bond

TSE;

March

2026

Long

2,536

(18)

UK

Year

Gilt;

March

2026

Long

739

Total

$

(25)

Amounts

in

thousands

except

contracts.

Schedule

of

Investments

SAM

Conservative

Growth

Portfolio

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.03

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

.93

%

Principal

Government

Money

Market

Fund

-

Class

3.67%

(a),(b)

3,982,332

$

3,982

Principal

Exchange-Traded

Funds

-

.12

%

Principal

International

Equity

ETF

(a) 928,356

30,599

Principal

U.S.

Mega-Cap

ETF

(a) 892,311

61,079

Principal

U.S.

Small-Cap

ETF

(a) 344,400

19,882

$

111,560

Principal

Funds,

Inc.

Class

-

.04

%

Blue

Chip

Fund

(a),(c)

223,963

9,420

Core

Fixed

Income

Fund

(a) 2,685,798

23,420

Diversified

Real

Asset

Fund

(a) 535,936

6,554

Global

Emerging

Markets

Fund

(a) 702,844

24,122

Global

Macro

Fund

(a) 321,800

3,224

High

Yield

Fund

(a) 1,127,305

7,564

International

Equity

Index

Fund

(a) 2,178,772

30,329

International

Small

Company

Fund

(a) 455,085

5,725

LargeCap

Growth

Fund

I

(a) 775,252

12,497

Small-MidCap

Dividend

Income

Fund

(a) 329,277

6,474

Spectrum

Preferred

and

Capital

Securities

Income

Fund

(a) 346,623

3,244

$

132,573

Principal

Funds,

Inc.

Institutional

Class

-

.28

%

Bond

Market

Index

Fund

(a) 1,694,858

14,457

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

(a) 431,029

4,164

Global

Listed

Infrastructure

Fund

(a) 353,497

4,136

Inflation

Protection

Fund

(a) 771,539

5,918

LargeCap

S&P

500

Index

Fund

(a) 278,956

9,030

LargeCap

Value

Fund

III

(a) 1,348,914

23,390

Overseas

Fund

(a) 2,641,131

30,928

Principal

Capital

Appreciation

Fund

(a) 582,705

50,147

$

142,170

Principal

Variable

Contracts

Funds,

Inc. Class

-

.66

%

Equity

Income

Account

(a) 909,527

28,887

Government

&

High

Quality

Bond

Account

(a) 204,078

1,747

MidCap

Account

(a) 31,303

1,942

Real

Estate

Securities

Account

(a) 252,813

4,419

$

36,995

TOTAL

INVESTMENT

COMPANIES

$

427,280

Total

Investments

$

427,280

Other

Assets

and

Liabilities

- (0.03)%

(124)

TOTAL

NET

ASSETS

-

100.00%

$

427,156

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b) 1-day

yield

shown

is

as

of

period

end.

(c) Non-income

producing

security

Schedule

of

Investments

SAM

Conservative

Growth

Portfolio

December

31,

2025

See

accompanying

notes.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Blue

Chip

Fund

$

30,657

$

1,754

$

23,874

$

9,420

Bond

Market

Index

Fund

10,493

5,465

1,809

14,457

Core

Fixed

Income

Fund

31,692

1,718

10,848

23,420

Diversified

International

Fund

16,144

17,576

—

Diversified

Real

Asset

Fund

12,805

541

7,846

6,554

Equity

Income

Account

41,986

9,403

23,480

28,887

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

4,280

852

4,164

Global

Emerging

Markets

Fund

11,139

12,827

3,357

24,122

Global

Listed

Infrastructure

Fund

—

4,155

4,136

Global

Macro

Fund

—

3,218

—

3,224

Government

&

High

Quality

Bond

Account

2,086

627

1,747

High

Yield

Fund

4,118

4,453

1,019

7,564

Inflation

Protection

Fund

2,705

3,676

532

5,918

International

Equity

Index

Fund

3,652

28,561

2,607

30,329

International

Small

Company

Fund

5,649

1,730

5,725

LargeCap

Growth

Fund

I

17,855

4,378

10,388

12,497

LargeCap

S&P

500

Index

Fund

9,872

669

2,811

9,030

LargeCap

Value

Fund

III

29,404

4,801

9,554

23,390

MidCap

Account

18,790

846

17,980

1,942

Overseas

Fund

15,967

15,049

3,717

30,928

Principal

Capital

Appreciation

Fund

51,280

13,470

18,295

50,147

Principal

Government

Money

Market

Fund

-

Class

3.67%

4,573

7,519

8,110

3,982

Principal

International

Equity

ETF

—

27,812

1,220

30,599

Principal

U.S.

Mega-Cap

ETF

52,665

13,635

14,100

61,079

Principal

U.S.

Small-Cap

ETF

15,350

9,760

6,558

19,882

Principal

Value

ETF

—

6,280

6,129

—

Real

Estate

Securities

Account

4,723

580

4,419

Small-MidCap

Dividend

Income

Fund

5,683

2,529

1,952

6,474

Spectrum

Preferred

and

Capital

Securities

Income

Fund

4,954

2,205

3,244

$

408,522

$

184,530

$

199,833

$

427,280

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Blue

Chip

Fund

$

—

$

16,694

$

1,556

$

(15,811)

Bond

Market

Index

Fund

557

(15)

—

Core

Fixed

Income

Fund

1,025

(1,338)

—

2,196

Diversified

International

Fund

—

3,670

(2,494)

Diversified

Real

Asset

Fund

—

758

Equity

Income

Account

867

7,486

3,941

(6,508)

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

(110)

—

Global

Emerging

Markets

Fund

3,341

Global

Listed

Infrastructure

Fund

—

Global

Macro

Fund

—

—

Government

&

High

Quality

Bond

Account

(17)

—

High

Yield

Fund

(11)

—

Inflation

Protection

Fund

(42)

—

International

Equity

Index

Fund

788

650

International

Small

Company

Fund

—

1,268

LargeCap

Growth

Fund

I

1,341

LargeCap

S&P

500

Index

Fund

745

555

LargeCap

Value

Fund

III

660

518

3,529

(1,779)

MidCap

Account

1,255

(969)

Overseas

Fund

1,190

(181)

1,596

3,810

Principal

Capital

Appreciation

Fund

2,796

3,682

896

Principal

Government

Money

Market

Fund

-

Class

3.67%

—

—

—

Principal

International

Equity

ETF

—

3,974

Principal

U.S.

Mega-Cap

ETF

519

2,142

—

6,737

Principal

U.S.

Small-Cap

ETF

1,129

—

Principal

Value

ETF

(151)

—

—

Real

Estate

Securities

Account

(11)

(169)

Small-MidCap

Dividend

Income

Fund

(20)

Spectrum

Preferred

and

Capital

Securities

Income

Fund

(136)

—

$

9,394

$

35,353

$

17,087

$

(1,292)

Amounts

in

thousands.

Schedule

of

Investments

SAM

Flexible

Income

Portfolio

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.91

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

.75

%

Principal

Government

Money

Market

Fund

-

Class

3.67%

(a),(b)

7,823,757

$

7,824

Principal

Exchange-Traded

Funds

-

.64

%

Principal

Active

High

Yield

ETF

(a) 121,116

2,302

Principal

International

Equity

ETF

(a) 120,630

3,976

Principal

U.S.

Mega-Cap

ETF

(a) 99,407

6,804

Principal

U.S.

Small-Cap

ETF

(a) 27,000

1,559

$

14,641

Principal

Funds,

Inc.

Class

-

.64

%

Core

Fixed

Income

Fund

(a) 3,901,657

34,022

Diversified

Real

Asset

Fund

(a) 70,326

860

Global

Emerging

Markets

Fund

(a) 25,645

880

Global

Macro

Fund

(a) 133,332

1,336

High

Yield

Fund

(a) 702,213

4,712

International

Equity

Index

Fund

(a) 190,747

2,655

LargeCap

Growth

Fund

I

(a) 24,848

Small-MidCap

Dividend

Income

Fund

(a) 74,722

1,469

Spectrum

Preferred

and

Capital

Securities

Income

Fund

(a) 327,907

3,069

$

49,404

Principal

Funds,

Inc.

Institutional

Class

-

.94

%

Bond

Market

Index

Fund

(a) 854,198

7,286

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

(a) 894,046

8,637

Inflation

Protection

Fund

(a) 763,237

5,854

LargeCap

S&P

500

Index

Fund

(a) 19,005

615

LargeCap

Value

Fund

III

(a) 110,742

1,920

Overseas

Fund

(a) 90,229

1,057

Principal

Capital

Appreciation

Fund

(a) 32,522

2,799

Short-Term

Income

Fund

(a) 440,784

5,360

$

33,528

Principal

Variable

Contracts

Funds,

Inc. Class

-

.94

%

Equity

Income

Account

(a) 130,309

4,138

Government

&

High

Quality

Bond

Account

(a) 595,311

5,096

MidCap

Account

(a) 8,604

534

Real

Estate

Securities

Account

(a) 33,388

584

$

10,352

TOTAL

INVESTMENT

COMPANIES

$

115,749

Total

Investments

$

115,749

Other

Assets

and

Liabilities

- 0.09%

TOTAL

NET

ASSETS

-

100.00%

$

115,850

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b) 1-day

yield

shown

is

as

of

period

end.

Schedule

of

Investments

SAM

Flexible

Income

Portfolio

December

31,

2025

See

accompanying

notes.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Bond

Market

Index

Fund

$

15,939

$

833

$

10,189

$

7,286

Core

Fixed

Income

Fund

43,753

2,241

13,131

34,022

Diversified

International

Fund

3,041

3,308

—

Diversified

Real

Asset

Fund

1,220

642

860

Equity

Income

Account

3,952

2,045

2,109

4,138

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

7,245

2,489

1,723

8,637

Global

Emerging

Markets

Fund

—

924

880

Global

Macro

Fund

—

1,333

—

1,336

Government

&

High

Quality

Bond

Account

5,623

1,194

5,096

High

Yield

Fund

1,376

4,204

887

4,712

Inflation

Protection

Fund

7,498

647

2,485

5,854

International

Equity

Index

Fund

—

2,761

2,655

LargeCap

Growth

Fund

I

1,268

988

LargeCap

S&P

500

Index

Fund

1,322

922

615

LargeCap

Value

Fund

III

2,761

1,126

1,920

MidCap

Account

1,297

842

534

Overseas

Fund

1,147

1,057

Principal

Active

High

Yield

ETF

2,323

—

—

2,302

Principal

Capital

Appreciation

Fund

5,034

1,114

3,728

2,799

Principal

Government

Money

Market

Fund

-

Class

3.67%

1,222

8,630

2,028

7,824

Principal

International

Equity

ETF

—

3,808

3,976

Principal

U.S.

Mega-Cap

ETF

8,789

724

3,926

6,804

Principal

U.S.

Small-Cap

ETF

769

856

1,559

Principal

Value

ETF

—

618

604

—

Real

Estate

Securities

Account

658

584

Short-Term

Income

Fund

4,638

1,695

1,045

5,360

Small-MidCap

Dividend

Income

Fund

2,218

507

1,315

1,469

Spectrum

Preferred

and

Capital

Securities

Income

Fund

4,178

1,111

2,322

3,069

$

127,271

$

38,173

$

56,018

$

115,749

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Bond

Market

Index

Fund

$

$

$

—

$

649

Core

Fixed

Income

Fund

1,416

(1,508)

—

2,667

Diversified

International

Fund

—

(144)

Diversified

Real

Asset

Fund

—

Equity

Income

Account

601

(351)

Finisterre

Emerging

Markets

Total

Return

Bond

Fund

(171)

—

797

Global

Emerging

Markets

Fund

Global

Macro

Fund

—

—

Government

&

High

Quality

Bond

Account

(47)

—

High

Yield

Fund

—

Inflation

Protection

Fund

(252)

—

International

Equity

Index

Fund

(1)

(14)

LargeCap

Growth

Fund

I

(76)

LargeCap

S&P

500

Index

Fund

(136)

LargeCap

Value

Fund

III

(134)

MidCap

Account

(55)

(44)

Overseas

Fund

(15)

Principal

Active

High

Yield

ETF

—

—

(21)

Principal

Capital

Appreciation

Fund

871

(492)

Principal

Government

Money

Market

Fund

-

Class

3.67%

—

—

—

Principal

International

Equity

ETF

—

627

Principal

U.S.

Mega-Cap

ETF

1,324

—

(107)

Principal

U.S.

Small-Cap

ETF

—

Principal

Value

ETF

(14)

—

—

Real

Estate

Securities

Account

—

(20)

Short-Term

Income

Fund

(4)

—

Small-MidCap

Dividend

Income

Fund

(95)

Spectrum

Preferred

and

Capital

Securities

Income

Fund

(34)

—

$

4,022

$

1,764

$

1,248

$

4,559

Amounts

in

thousands.

Futures

Contracts

Description

and

Expiration

Date

Type

Contracts

Notional

Amount

Value

and

Unrealized

Appreciation/(Depreciation)

Australia

Year

Bond;

March

2026

Long

$

$

—

Canada

Year

Bond;

March

2026

Long

(3)

Euro

Bond

Year

Bond;

March

2026

Long

750

(6)

Euro-BTP;

March

2026

Long

1,413

(4)

Schedule

of

Investments

SAM

Flexible

Income

Portfolio

December

31,

2025

See

accompanying

notes.

Futures

Contracts

(continued)

Description

and

Expiration

Date

Type

Contracts

Notional

Amount

Value

and

Unrealized

Appreciation/(Depreciation)

Euro-Oat;

March

2026

Long

$

992

$

(5)

Japan

Year

Bond

TSE;

March

2026

Long

2,536

(18)

UK

Year

Gilt;

March

2026

Long

862

Total

$

(25)

Amounts

in

thousands

except

contracts.

Schedule

of

Investments

SAM

Strategic

Growth

Portfolio

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.03

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

.92

%

Principal

Government

Money

Market

Fund

-

Class

3.67%

(a),(b)

4,524,217

$

4,524

Principal

Exchange-Traded

Funds

-

.63

%

Principal

International

Equity

ETF

(a) 1,135,722

37,433

Principal

U.S.

Mega-Cap

ETF

(a) 1,078,000

73,789

Principal

U.S.

Small-Cap

ETF

(a) 470,100

27,139

Principal

Value

ETF

(a) 47,000

2,453

$

140,814

Principal

Funds,

Inc.

Class

-

.41

%

Blue

Chip

Fund

(a),(c)

309,023

12,997

Diversified

Real

Asset

Fund

(a) 680,632

8,324

Global

Emerging

Markets

Fund

(a) 986,070

33,842

Global

Macro

Fund

(a) 370,922

3,717

International

Equity

Index

Fund

(a) 2,678,860

37,290

International

Small

Company

Fund

(a) 865,541

10,889

LargeCap

Growth

Fund

I

(a) 1,317,500

21,238

Small-MidCap

Dividend

Income

Fund

(a) 579,301

11,389

$

139,686

Principal

Funds,

Inc.

Institutional

Class

-

.01

%

Global

Listed

Infrastructure

Fund

(a) 399,733

4,677

Inflation

Protection

Fund

(a) 635,351

4,873

LargeCap

S&P

500

Index

Fund

(a) 436,432

14,128

LargeCap

Value

Fund

III

(a) 1,749,371

30,334

Overseas

Fund

(a) 3,638,023

42,601

Principal

Capital

Appreciation

Fund

(a) 763,733

65,727

$

162,340

Principal

Variable

Contracts

Funds,

Inc. Class

-

.06

%

Equity

Income

Account

(a) 1,187,868

37,727

MidCap

Account

(a) 40,992

2,543

Real

Estate

Securities

Account

(a) 245,419

4,290

$

44,560

TOTAL

INVESTMENT

COMPANIES

$

491,924

Total

Investments

$

491,924

Other

Assets

and

Liabilities

- (0.03)%

(144)

TOTAL

NET

ASSETS

-

100.00%

$

491,780

(a) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b) 1-day

yield

shown

is

as

of

period

end.

(c) Non-income

producing

security

Schedule

of

Investments

SAM

Strategic

Growth

Portfolio

December

31,

2025

See

accompanying

notes.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Blue

Chip

Fund

$

38,705

$

2,674

$

28,778

$

12,997

Bond

Market

Index

Fund

—

3,397

3,435

—

Diversified

International

Fund

24,772

792

27,379

—

Diversified

Real

Asset

Fund

14,910

824

8,653

8,324

Equity

Income

Account

55,040

7,503

26,255

37,727

Global

Emerging

Markets

Fund

15,789

16,607

3,701

33,842

Global

Listed

Infrastructure

Fund

—

4,686

4,677

Global

Macro

Fund

—

3,710

—

3,717

Inflation

Protection

Fund

—

6,612

1,699

4,873

International

Equity

Index

Fund

5,379

33,547

2,714

37,290

International

Small

Company

Fund

10,321

1,400

3,509

10,889

LargeCap

Growth

Fund

I

23,707

10,619

13,749

21,238

LargeCap

S&P

500

Index

Fund

13,668

1,682

3,034

14,128

LargeCap

Value

Fund

III

40,715

6,958

15,900

30,334

MidCap

Account

23,354

3,013

22,215

2,543

Overseas

Fund

22,763

20,462

5,729

42,601

Principal

Capital

Appreciation

Fund

67,368

9,156

14,581

65,727

Principal

Government

Money

Market

Fund

-

Class

3.67%

3,194

12,366

11,036

4,524

Principal

International

Equity

ETF

—

31,242

—

37,433

Principal

U.S.

Mega-Cap

ETF

62,852

6,099

4,684

73,789

Principal

U.S.

Small-Cap

ETF

18,667

14,326

7,507

27,139

Principal

Value

ETF

—

12,013

9,740

2,453

Real

Estate

Securities

Account

3,892

1,365

804

4,290

Small-MidCap

Dividend

Income

Fund

5,696

5,946

566

11,389

$

450,792

$

216,999

$

215,743

$

491,924

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Blue

Chip

Fund

$

—

$

14,953

$

2,154

$

(14,557)

Bond

Market

Index

Fund

—

—

—

Diversified

International

Fund

—

4,732

(2,917)

Diversified

Real

Asset

Fund

(372)

—

1,615

Equity

Income

Account

1,019

3,315

4,629

(1,876)

Global

Emerging

Markets

Fund

587

5,042

Global

Listed

Infrastructure

Fund

—

Global

Macro

Fund

—

—

Inflation

Protection

Fund

—

(69)

International

Equity

Index

Fund

953

954

International

Small

Company

Fund

(52)

—

2,729

LargeCap

Growth

Fund

I

1,074

2,282

(413)

LargeCap

S&P

500

Index

Fund

1,432

LargeCap

Value

Fund

III

857

998

4,585

(2,437)

MidCap

Account

(513)

2,393

(1,096)

Overseas

Fund

1,636

(390)

2,200

5,495

Principal

Capital

Appreciation

Fund

2,462

4,889

1,322

Principal

Government

Money

Market

Fund

-

Class

3.67%

—

—

—

Principal

International

Equity

ETF

—

—

6,191

Principal

U.S.

Mega-Cap

ETF

589

—

9,051

Principal

U.S.

Small-Cap

ETF

1,257

—

Principal

Value

ETF

—

Real

Estate

Securities

Account

(27)

(136)

Small-MidCap

Dividend

Income

Fund

(36)

$

8,815

$

28,594

$

24,686

$

11,282

Amounts

in

thousands.

Schedule

of

Investments

Short-Term

Income

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.53

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

.53

%

BlackRock

Liquidity

FedFund

-

Institutional

Class

3.64%

(a),(b)

1,313,236

$

1,313

Principal

Government

Money

Market

Fund

-

Class

3.67%

(a),(c)

4,721,105

4,721

$

6,034

TOTAL

INVESTMENT

COMPANIES

$

6,034

BONDS

-

.14

%

Principal

Amount

(000's)

Value

(000's)

Aerospace

&

Defense

-

.55

%

BAE

Systems

PLC

5.13%,

03/26/2029

(d) $

$

General

Electric

Co

4.30%,

07/29/2030

Lockheed

Martin

Corp

4.50%,

02/15/2029

650

660

Northrop

Grumman

Corp

4.60%,

02/01/2029

500

508

RTX

Corp

5.75%,

11/08/2026

$

2,060

Agriculture

-

.56

%

Bunge

Ltd

Finance

Corp

4.10%,

01/07/2028

4.20%,

09/17/2029

500

500

$

751

Airlines

-

.63

%

Alaska

Airlines

2020-1

Class

A

Pass

Through

Trust

4.80%,

02/15/2029

(d) 426

AS

Mileage

Plan

IP

Ltd

5.02%,

10/20/2029

(d) 400

$

831

Automobile

Asset

Backed

Securities

-

.07

%

AmeriCredit

Automobile

Receivables

Trust

2025-1

4.22%,

03/19/2029

(d) 230

BofA

Auto

Trust

2025-1

4.52%,

11/22/2027

(d) 165

Chase

Auto

Owner

Trust

2024-5

4.40%,

11/26/2027

(d) 70

Chase

Auto

Owner

Trust

2025-1

4.40%,

07/25/2028

(d) 244

Consumer

Portfolio

Services

Auto

Trust

2025-A

4.77%,

10/16/2028

(d) 146

Consumer

Portfolio

Services

Auto

Trust

2025-B

4.74%,

02/15/2029

(d) 118

CPS

Auto

Receivables

Trust

2024-C

5.88%,

02/15/2028

(d) 23

CPS

Auto

Receivables

Trust

2024-D

4.91%,

06/15/2028

(d) 65

CPS

Auto

Receivables

Trust

2025-C

4.71%,

03/15/2029

(d) 71

GM

Financial

Consumer

Automobile

Receivables

Trust

2024-3

5.35%,

06/16/2027

GM

Financial

Consumer

Automobile

Receivables

Trust

2024-4

4.53%,

10/18/2027

GM

Financial

Consumer

Automobile

Receivables

Trust

2025-1

4.44%,

01/18/2028

Gm

Financial

Consumer

Automobile

Receivables

Trust

2025-3

4.32%,

06/16/2028

GM

Financial

Consumer

Automobile

Receivables

Trust

2025-4

3.88%,

12/18/2028

500

501

LAD

Auto

Receivables

Trust

2025-3

4.06%,

03/15/2029

(d) 300

Nissan

Auto

Receivables

2024-B

Owner

Trust

4.51%,

06/15/2027

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Automobile

Asset

Backed

Securities

(continued)

Nissan

Auto

Receivables

2025-B

Owner

Trust

4.00%,

07/17/2028

$

500

$

501

Onemain

Direct

Auto

Receivables

Trust

2022-1

4.65%,

03/14/2029

(d) 64

Toyota

Auto

Loan

Extended

Note

Trust

2023-1

4.93%,

06/25/2036

(d) 400

Toyota

Auto

Receivables

2024-D

Owner

Trust

4.55%,

08/16/2027

Westlake

Automobile

Receivables

Trust

2024-3

4.82%,

09/15/2027

(d) 87

Westlake

Automobile

Receivables

Trust

2025-1

4.66%,

01/18/2028

(d) 195

Westlake

Automobile

Receivables

Trust

2025-2

4.66%,

09/15/2028

(d) 100

Westlake

Automobile

Receivables

Trust

2025-3

4.31%,

04/17/2028

(d) 250

Westlake

Automobile

Receivables

Trust

2025-P1

4.65%,

02/15/2028

(d) 100

World

Omni

Auto

Receivables

Trust

2025-C

4.19%,

10/16/2028

World

Omni

Auto

Receivables

Trust

2025-D

3.91%,

02/15/2029

500

501

World

Omni

Select

Auto

Trust

2024-A

5.37%,

02/15/2028

World

Omni

Select

Auto

Trust

2025-A

4.14%,

05/15/2030

$

5,426

Banks

-

.53

%

Bank

of

America

Corp

4.98%,

01/24/2029

(e) 350

Secured

Overnight

Financing

Rate

+

0.83%

5.16%,

01/24/2031

(e) 350

Secured

Overnight

Financing

Rate

+

1.00%

Bank

of

Ireland

Group

PLC

5.60%,

03/20/2030

(d),(e)

500

519

Secured

Overnight

Financing

Rate

+

1.62%

Bank

of

Montreal

0.95%,

01/22/2027

(e) 600

599

Secured

Overnight

Financing

Rate

+

0.60%

Bank

of

New

York

Mellon

Corp/The

4.44%,

06/09/2028

(e) 300

Secured

Overnight

Financing

Rate

+

0.68%

Bank

of

Nova

Scotia/The

1.30%,

09/15/2026

4.40%,

09/08/2028

(e) 400

Secured

Overnight

Financing

Rate

+

1.00%

Barclays

PLC

2.28%,

11/24/2027

(e) 500

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.05%

BNP

Paribas

SA

5.09%,

05/09/2031

(d),(e)

Secured

Overnight

Financing

Rate

+

1.68%

Canadian

Imperial

Bank

of

Commerce

5.93%,

10/02/2026

5.99%,

10/03/2028

Citibank

NA

4.88%,

11/19/2027

(e) 250

Secured

Overnight

Financing

Rate

+

0.71%

Citigroup

Inc

1.12%,

01/28/2027

(e) 900

898

Secured

Overnight

Financing

Rate

+

0.77%

4.54%,

09/19/2030

(e) 400

Secured

Overnight

Financing

Rate

+

1.34%

5.17%,

02/13/2030

(e) 400

Secured

Overnight

Financing

Rate

+

1.36%

Schedule

of

Investments

Short-Term

Income

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Banks

(continued)

Deutsche

Bank

AG/New

York

NY

4.47%,

12/10/2031

(e) $

$

Secured

Overnight

Financing

Rate

+

1.10%

5.41%,

05/10/2029

6.82%,

11/20/2029

(e) 400

Secured

Overnight

Financing

Rate

+

2.51%

Fifth

Third

Bancorp

4.89%,

09/06/2030

(e) 100

Secured

Overnight

Financing

Rate

+

1.49%

Goldman

Sachs

Group

Inc/The

2.64%,

02/24/2028

(e) 500

Secured

Overnight

Financing

Rate

+

1.11%

4.48%,

08/23/2028

(e) 500

504

Secured

Overnight

Financing

Rate

+

1.73%

5.21%,

01/28/2031

(e) 500

516

Secured

Overnight

Financing

Rate

+

1.08%

5.22%,

04/23/2031

(e) 250

Secured

Overnight

Financing

Rate

+

1.58%

5.73%,

04/25/2030

(e) 400

Secured

Overnight

Financing

Rate

+

1.27%

JPMorgan

Chase

&

Co

1.04%,

02/04/2027

(e) 700

698

CME

Term

Secured

Overnight

Financing

Rate

Month

+

0.70%

4.45%,

12/05/2029

(e) 350

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.59%

4.51%,

10/22/2028

(e) 200

Secured

Overnight

Financing

Rate

+

0.86%

4.92%,

01/24/2029

(e) 250

Secured

Overnight

Financing

Rate

+

0.80%

5.57%,

04/22/2028

(e) 300

Secured

Overnight

Financing

Rate

+

0.93%

5.58%,

04/22/2030

(e) 300

Secured

Overnight

Financing

Rate

+

1.16%

KeyBank

NA/Cleveland

OH

5.85%,

11/15/2027

600

618

Mizuho

Financial

Group

Inc

4.71%,

07/08/2031

(e) 200

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

0.92%

Morgan

Stanley

1.59%,

05/04/2027

(e) 550

545

Secured

Overnight

Financing

Rate

+

0.88%

2.48%,

01/21/2028

(e) 300

Secured

Overnight

Financing

Rate

+

1.00%

4.65%,

10/18/2030

(e) 300

Secured

Overnight

Financing

Rate

+

1.10%

5.05%,

01/28/2027

(e) 250

Secured

Overnight

Financing

Rate

+

1.30%

5.17%,

01/16/2030

(e) 450

Secured

Overnight

Financing

Rate

+

1.45%

5.23%,

01/15/2031

(e) 300

Secured

Overnight

Financing

Rate

+

1.11%

5.65%,

04/13/2028

(e) 125

Secured

Overnight

Financing

Rate

+

1.01%

5.66%,

04/18/2030

(e) 300

Secured

Overnight

Financing

Rate

+

1.26%

Morgan

Stanley

Bank

NA

5.02%,

01/12/2029

(e) 400

Secured

Overnight

Financing

Rate

+

0.91%

NatWest

Group

PLC

4.96%,

08/15/2030

(e) 400

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.22%

5.01%,

11/15/2028

Secured

Overnight

Financing

Rate

+

1.30%

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Banks

(continued)

PNC

Bank

NA

4.54%,

05/13/2027

(e) $

$

Secured

Overnight

Financing

Rate

+

0.63%

PNC

Financial

Services

Group

Inc/The

4.90%,

05/13/2031

(e) 250

Secured

Overnight

Financing

Rate

+

1.33%

5.22%,

01/29/2031

(e) 250

Secured

Overnight

Financing

Rate

+

1.07%

Royal

Bank

of

Canada

0.88%,

01/20/2026

600

599

4.70%,

08/06/2031

(e) 200

Secured

Overnight

Financing

Rate

+

1.06%

Societe

Generale

SA

5.50%,

04/13/2029

(d),(e)

500

512

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

1.20%

5.51%,

05/22/2031

(d),(e)

Secured

Overnight

Financing

Rate

+

1.65%

Swedbank

AB

5.00%,

11/20/2029

(d),(f)

Toronto-Dominion

Bank/The

0.75%,

01/06/2026

600

600

Truist

Financial

Corp

1.27%,

03/02/2027

(e) 348

Secured

Overnight

Financing

Rate

+

0.61%

7.16%,

10/30/2029

(e) 300

Secured

Overnight

Financing

Rate

+

2.45%

UBS

Group

AG

3.87%,

01/12/2029

(d),(e)

750

746

Month

USD

LIBOR

+

1.41%

US

Bancorp

5.10%,

07/23/2030

(e) 150

Secured

Overnight

Financing

Rate

+

1.25%

5.38%,

01/23/2030

(e) 175

Secured

Overnight

Financing

Rate

+

1.56%

US

Bank

NA/Cincinnati

OH

4.73%,

05/15/2028

(e) 250

Secured

Overnight

Financing

Rate

+

0.91%

Wells

Fargo

&

Co

5.15%,

04/23/2031

(e) 200

Secured

Overnight

Financing

Rate

+

1.50%

5.24%,

01/24/2031

(e) 175

Secured

Overnight

Financing

Rate

+

1.11%

5.71%,

04/22/2028

(e) 300

Secured

Overnight

Financing

Rate

+

1.07%

$

22,019

Biotechnology

-

.46

%

Amgen

Inc

5.15%,

03/02/2028

Gilead

Sciences

Inc

4.80%,

11/15/2029

$

615

Building

Materials

-

.23

%

Vulcan

Materials

Co

4.95%,

12/01/2029

Chemicals

-

.20

%

Westlake

Corp

3.60%,

08/15/2026

Commercial

Mortgage

Backed

Securities

-

.39

%

1301

Trust

2025-AOA

5.06%,

08/11/2042

(d),(g)

ALA

Trust

2025-OANA

5.49%,

06/15/2040

(d) 200

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.74%

Arbor

Multifamily

Mortgage

Securities

Trust

2022-MF4

3.27%,

02/15/2055

(d),(g)

Schedule

of

Investments

Short-Term

Income

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Commercial

Mortgage

Backed

Securities

(continued)

ARES

Trust

2025-IND3

5.25%,

04/15/2042

(d) $

$

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.50%

BFLD

Commercial

Mortgage

Trust

2024-UNIV

5.24%,

11/15/2041

(d) 300

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.49%

BFLD

Commercial

Mortgage

Trust

2025-5MW

4.67%,

10/10/2042

(d),(g)

BFLD

Commercial

Mortgage

Trust

2025-660F

5.25%,

11/15/2042

(d) 250

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.50%

BX

2024-PALM

5.29%,

06/15/2037

(d) 260

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.54%

BX

Commercial

Mortgage

Trust

2021-ACNT

4.71%,

11/15/2038

(d) 312

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

0.96%

BX

Commercial

Mortgage

Trust

2024-AIRC

5.44%,

08/15/2041

(d) 468

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.69%

BX

Commercial

Mortgage

Trust

2024-GPA3

5.04%,

12/15/2039

(d) 161

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.29%

BX

Trust

2021-BXMF

4.50%,

10/15/2026

(d) 269

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

0.75%

BX

Trust

2021-LGCY

4.37%,

10/15/2036

(d) 300

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

0.62%

BX

Trust

2025-DIME

4.90%,

02/15/2035

(d) 350

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.15%

BX

Trust

2025-TAIL

5.15%,

06/15/2035

(d) 300

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.40%

BX

Trust

2025-VOLT

5.45%,

12/15/2044

(d) 400

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.70%

CHI

Commercial

Mortgage

Trust

2025-110W

5.10%,

12/13/2040

(d),(g)

DBC

2025-DBC

Mortgage

Trust

5.10%,

11/15/2042

(d) 300

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.35%

ELP

Commercial

Mortgage

Trust

2025-ELP

4.60%,

11/13/2042

(d),(g)

GS

Mortgage

Securities

Corp

Trust

2023-SHIP

4.32%,

09/10/2038

(d),(g)

GSAT

Trust

2025-BMF

5.25%,

07/15/2040

(d) 200

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.50%

GSJP

Trust

2025-BEDS

5.26%,

12/15/2042

(d) 250

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.50%

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Commercial

Mortgage

Backed

Securities

(continued)

JP

Morgan

Chase

Commercial

Mortgage

Securities

Trust

2021-MHC

4.92%,

04/15/2038

(d) $

658

$

658

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.16%

KRE

Commercial

Mortgage

Trust

2025-AIP4

5.05%,

03/15/2042

(d) 400

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.30%

LBA

Trust

2024-7IND

5.19%,

10/15/2041

(d) 227

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.44%

Life

2022-BMR

Mortgage

Trust

5.05%,

05/15/2039

(d) 800

772

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.30%

MED

Commercial

Mortgage

Trust

2024-MOB

5.34%,

05/15/2041

(d) 500

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.59%

MHP

2021-STOR

4.57%,

07/15/2038

(d) 650

649

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

0.81%

NYC

Commercial

Mortgage

Trust

2025-28L

4.67%,

11/05/2038

(d),(g)

PENN

Commercial

Mortgage

Trust

2025-P11

5.34%,

08/10/2042

(d),(g)

PRM5

Trust

2025-PRM5

4.47%,

03/10/2033

(d),(g)

SREIT

Trust

2021-MFP

4.60%,

11/15/2038

(d) 503

503

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

0.85%

TEXAS

Commercial

Mortgage

Trust

2025-TWR

5.04%,

04/15/2042

(d) 200

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.29%

WB

Commercial

Mortgage

Trust

2024-HQ

5.94%,

03/15/2040

(d),(g)

500

$

11,171

Computers

-

.17

%

Apple

Inc

4.00%,

05/12/2028

Dell

International

LLC

/

EMC

Corp

4.75%,

04/01/2028

5.00%,

04/01/2030

Hewlett

Packard

Enterprise

Co

4.40%,

09/25/2027

600

603

4.55%,

10/15/2029

$

1,563

Diversified

Financial

Services

-

.42

%

AerCap

Ireland

Capital

DAC

/

AerCap

Global

Aviation

Trust

4.38%,

11/15/2030

6.45%,

04/15/2027

$

559

Electric

-

.75

%

Alliant

Energy

Finance

LLC

1.40%,

03/15/2026

(d) 150

5.95%,

03/30/2029

(d) 500

523

Black

Hills

Corp

4.55%,

01/31/2031

Consumers

Energy

Co

4.90%,

02/15/2029

Dominion

Energy

Inc

4.60%,

05/15/2028

Schedule

of

Investments

Short-Term

Income

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Electric

(continued)

DTE

Energy

Co

3.40%,

06/15/2029

$

$

Evergy

Kansas

Central

Inc

4.70%,

03/13/2028

Exelon

Corp

5.15%,

03/15/2029

Fortis

Inc/Canada

3.06%,

10/04/2026

656

651

NextEra

Energy

Capital

Holdings

Inc

4.90%,

02/28/2028

4.90%,

03/15/2029

NRG

Energy

Inc

4.73%,

10/15/2030

(d) 150

OGE

Energy

Corp

5.45%,

05/15/2029

PacifiCorp

5.10%,

02/15/2029

Public

Service

Enterprise

Group

Inc

4.90%,

03/15/2030

5.20%,

04/01/2029

5.88%,

10/15/2028

Southern

Co/The

5.50%,

03/15/2029

500

519

Southern

Power

Co

4.25%,

10/01/2030

Southwestern

Electric

Power

Co

1.65%,

03/15/2026

600

597

Tampa

Electric

Co

4.90%,

03/01/2029

Vistra

Operations

Co

LLC

3.70%,

01/30/2027

(d) 800

794

Wisconsin

Public

Service

Corp

4.55%,

12/01/2029

Xcel

Energy

Inc

1.75%,

03/15/2027

$

7,656

Environmental

Control

-

.23

%

Republic

Services

Inc

4.75%,

07/15/2030

Food

-

.38

%

Mars

Inc

4.60%,

03/01/2028

(d) 200

4.80%,

03/01/2030

(d) 300

$

509

Gas

-

.12

%

NiSource

Inc

5.25%,

03/30/2028

Healthcare

-

Products

-

.15

%

Solventum

Corp

5.40%,

03/01/2029

Healthcare

-

Services

-

.87

%

Cigna

Group/The

1.25%,

03/15/2026

HCA

Inc

4.30%,

11/15/2030

5.25%,

06/15/2026

700

700

5.88%,

02/01/2029

$

1,163

Home

Equity

Asset

Backed

Securities

-

.07

%

JP

Morgan

Mortgage

Trust

2023-HE1

5.67%,

11/25/2053

(d) 49

1.00 x

Day

Average

Secured

Overnight

Financing

Rate

+

1.75%

JP

Morgan

Mortgage

Trust

2023-HE2

5.62%,

03/20/2054

(d) 260

1.00 x

Day

Average

Secured

Overnight

Financing

Rate

+

1.70%

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Home

Equity

Asset

Backed

Securities

(continued)

JP

Morgan

Mortgage

Trust

2023-HE3

5.52%,

05/20/2054

(d) $

$

1.00 x

Day

Average

Secured

Overnight

Financing

Rate

+

1.60%

JP

Morgan

Mortgage

Trust

2025-HE3

5.27%,

03/20/2056

(d) 389

1.00 x

Day

Average

Secured

Overnight

Financing

Rate

+

1.35%

JP

Morgan

Mortgage

Trust

Series

2024-CES1

5.92%,

06/25/2054

(d),(g)

JP

Morgan

Mortgage

Trust

Series

2024-HE3

5.12%,

02/25/2055

(d) 319

1.00 x

Day

Average

Secured

Overnight

Financing

Rate

+

1.20%

JP

Morgan

Mortgage

Trust

Series

2025-CES1

5.67%,

05/25/2055

(d),(g)

JP

Morgan

Mortgage

Trust

Series

2025-CES2

5.59%,

06/25/2055

(d),(g)

JP

Morgan

Mortgage

Trust

Series

2025-CES7

5.06%,

04/25/2056

(d),(g)

JP

Morgan

Mortgage

Trust

Series

2025-HE1

5.07%,

07/20/2055

(d) 476

1.00 x

Day

Average

Secured

Overnight

Financing

Rate

+

1.15%

$

2,752

Insurance

-

.48

%

Aon

North

America

Inc

5.15%,

03/01/2029

700

720

Arthur

J

Gallagher

&

Co

4.85%,

12/15/2029

Brown

&

Brown

Inc

4.90%,

06/23/2030

Guardian

Life

Global

Funding

4.40%,

12/11/2030

(d) 250

Markel

Group

Inc

3.50%,

11/01/2027

New

York

Life

Global

Funding

4.60%,

12/05/2029

(d) 200

4.60%,

06/03/2030

(d) 350

Northwestern

Mutual

Global

Funding

0.80%,

01/14/2026

(d) 500

500

4.96%,

01/13/2030

(d) 300

5.07%,

03/25/2027

(d) 500

507

$

3,306

Internet

-

.82

%

Alphabet

Inc

3.88%,

11/15/2028

4.10%,

11/15/2030

eBay

Inc

1.40%,

05/10/2026

500

4.25%,

03/06/2029

$

1,097

Machinery

-

Diversified

-

.23

%

Ingersoll

Rand

Inc

5.20%,

06/15/2027

Westinghouse

Air

Brake

Technologies

Corp

4.90%,

05/29/2030

$

Media

-

.39

%

Charter

Communications

Operating

LLC

/

Charter

Communications

Operating

Capital

6.10%,

06/01/2029

500

522

Mining

-

.08

%

Glencore

Funding

LLC

5.19%,

04/01/2030

(d) 100

Schedule

of

Investments

Short-Term

Income

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Mortgage

Backed

Securities

-

.35

%

Chase

Home

Lending

Mortgage

Trust

2025-3

5.50%,

02/25/2056

(d),(g)

$

$

Chase

Home

Lending

Mortgage

Trust

Series

2024-2

6.50%,

02/25/2055

(d),(g)

CHL

Mortgage

Pass-Through

Trust

2003-46

5.77%,

01/19/2034

(g) 7

Credit

Suisse

First

Boston

Mortgage

Securities

Corp

5.00%,

01/25/2038

GS

Mortgage-Backed

Securities

Corp

Trust

2021-PJ3

2.50%,

08/25/2051

(d),(g)

JP

Morgan

Mortgage

Trust

2004-A3

6.45%,

07/25/2034

(g) 2

JP

Morgan

Mortgage

Trust

2004-S1

5.00%,

09/25/2034

JP

Morgan

Mortgage

Trust

2021-1

2.50%,

06/25/2051

(d),(g)

JP

Morgan

Mortgage

Trust

2023-10

6.00%,

05/25/2054

(d),(g)

JP

Morgan

Mortgage

Trust

2023-8

6.00%,

02/25/2054

(d),(g)

633

640

Morgan

Stanley

Residential

Mortgage

Loan

Trust

2020-1

2.50%,

12/25/2050

(d),(g)

Morgan

Stanley

Residential

Mortgage

Loan

Trust

2025-1

5.50%,

03/25/2055

(d),(g)

Oceanview

Mortgage

Trust

2021-3

2.50%,

06/25/2051

(d),(g)

PHH

Mortgage

Trust

Series

2008-CIM1

6.24%,

06/25/2038

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

2.36%

PSMC

2021-3

Trust

2.50%,

08/25/2051

(d),(g)

600

545

Sequoia

Mortgage

Trust

2020-4

2.50%,

11/25/2050

(d),(g)

Sequoia

Mortgage

Trust

2021-3

2.50%,

05/25/2051

(d),(g)

Sequoia

Mortgage

Trust

2021-4

2.50%,

06/25/2051

(d),(g)

Sequoia

Mortgage

Trust

2024-1

5.72%,

01/25/2054

(d),(g)

Sequoia

Mortgage

Trust

2024-2

6.00%,

03/25/2054

(d),(g)

Sequoia

Mortgage

Trust

2024-4

6.00%,

05/25/2054

(d),(g)

538

543

Wells

Fargo

Mortgage

Backed

Securities

2020-3

Trust

3.00%,

06/25/2050

(d),(g)

Wells

Fargo

Mortgage

Backed

Securities

2020-4

Trust

3.00%,

07/25/2050

(d),(g)

Wells

Fargo

Mortgage

Backed

Securities

2020-5

Trust

2.50%,

09/25/2050

(d),(g)

Wells

Fargo

Mortgage

Backed

Securities

2021-1

Trust

2.50%,

12/25/2050

(d),(g)

$

4,467

Oil

&

Gas

-

.24

%

Canadian

Natural

Resources

Ltd

5.00%,

12/15/2029

Diamondback

Energy

Inc

5.15%,

01/30/2030

5.20%,

04/18/2027

EOG

Resources

Inc

4.40%,

07/15/2028

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Oil

&

Gas

(continued)

Occidental

Petroleum

Corp

5.20%,

08/01/2029

$

$

Shell

Finance

US

Inc

4.13%,

11/06/2030

$

1,644

Oil

&

Gas

Services

-

.31

%

Schlumberger

Holdings

Corp

5.00%,

05/29/2027

(d) 200

5.00%,

11/15/2029

(d) 200

$

Other

Asset

Backed

Securities

-

.38

%

1988

CLO

Ltd

5.10%,

04/15/2038

(d) 300

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.20%

1988

CLO

Ltd

5.15%,

10/15/2038

(d) 500

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.25%

Capital

CLO

II

5.19%,

07/15/2034

(d) 300

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.29%

720

East

CLO

V

Ltd

5.41%,

07/20/2037

(d) 250

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.53%

AB

BSL

CLO

Ltd

5.18%,

04/20/2038

(d) 250

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.30%

Bardot

CLO

Ltd

4.84%,

10/22/2032

(d) 380

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

0.98%

CCG

Receivables

Trust

2024-1

4.99%,

03/15/2032

(d) 127

CCG

Receivables

Trust

2025-2

4.12%,

10/14/2026

(d) 163

4.14%,

08/15/2034

(d) 250

Cerberus

Loan

Funding

XXIV

LP

5.25%,

07/15/2030

(d) 259

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.35%

CF

Hippolyta

Issuer

LLC

1.53%,

03/15/2061

(d) 1,304

1,052

1.69%,

07/15/2060

(d) 444

CNH

Equipment

Trust

2024-B

5.42%,

10/15/2027

Dell

Equipment

Finance

Trust

2025-2

4.10%,

02/22/2028

(d) 250

Dewolf

Park

CLO

Ltd

5.09%,

10/15/2030

(d) 184

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.18%

DLLAA

2025-1

LLC

4.70%,

10/20/2027

(d) 228

Dllad

2024-1

LLC

5.50%,

08/20/2027

(d) 113

DLLAD

2025-1

LLC

4.46%,

11/20/2028

(d) 200

Empower

CLO

2025-1

Ltd

5.19%,

07/20/2038

(d) 400

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.31%

GreatAmerica

Leasing

Receivables

Funding

LLC

Series

2024-1

5.32%,

08/17/2026

(d) 47

Schedule

of

Investments

Short-Term

Income

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Other

Asset

Backed

Securities

(continued)

Lake

Shore

MM

CLO

II

Ltd

5.28%,

10/17/2031

(d) $

$

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.40%

Madison

Park

Funding

XL-R

Ltd

5.25%,

10/16/2038

(d) 250

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.29%

Magnetite

XLVII

Ltd

5.19%,

01/25/2038

(d) 250

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.33%

Maranon

Loan

Funding

2021-3

Ltd

5.65%,

10/15/2036

(d) 300

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.75%

MVW

2021-1W

LLC

1.14%,

01/22/2041

(d) 17

MVW

2023-2

LLC

6.18%,

11/20/2040

(d) 234

MVW

2024-2

LLC

4.43%,

03/20/2042

(d) 350

Navesink

CLO

Ltd

0.00%,

01/15/2036

(d),(h),(i)

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.19%

New

Mountain

CLO

Ltd

5.28%,

10/15/2037

(d) 300

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.40%

New

Mountain

CLO

Ltd

5.08%,

03/31/2038

(d) 250

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.20%

Oaktree

CLO

2019-4

Ltd

5.39%,

07/20/2037

(d) 500

501

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.51%

Oaktree

CLO

2024-25

Ltd

5.43%,

04/20/2037

(d) 500

500

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.55%

PFS

Financing

Corp

4.85%,

02/15/2030

(d) 450

4.95%,

02/15/2029

(d) 650

657

5.52%,

10/15/2028

(d) 200

Signal

Peak

CLO

Ltd

5.33%,

07/18/2037

(d) 250

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.45%

T-Mobile

US

Trust

2025-2

4.34%,

04/22/2030

(d) 200

Trafigura

Securitisation

Finance

PLC

5.98%,

11/15/2027

(d) 750

759

Verizon

Master

Trust

4.17%,

08/20/2030

4.35%,

08/20/2032

(d) 250

4.49%,

01/22/2029

700

700

4.62%,

11/20/2030

5.16%,

06/20/2029

600

603

Voya

2012-4

Ltd

5.17%,

10/15/2030

(d) 42

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

1.26%

$

13,823

Packaging

&

Containers

-

.65

%

Graphic

Packaging

International

LLC

1.51%,

04/15/2026

(d) 450

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Packaging

&

Containers

(continued)

Smurfit

Kappa

Treasury

ULC

5.20%,

01/15/2030

$

$

$

858

Pharmaceuticals

-

.02

%

AbbVie

Inc

4.80%,

03/15/2029

500

512

Astrazeneca

Finance

LLC

4.85%,

02/26/2029

Eli

Lilly

&

Co

4.50%,

02/09/2029

500

509

4.55%,

02/12/2028

4.75%,

02/12/2030

Novartis

Capital

Corp

3.90%,

11/05/2028

4.10%,

11/05/2030

Pfizer

Inc

3.88%,

11/15/2027

4.20%,

11/15/2030

$

2,692

Pipelines

-

.24

%

Columbia

Pipelines

Holding

Co

LLC

6.04%,

08/15/2028

(d) 525

546

6.06%,

08/15/2026

(d) 150

Enbridge

Inc

5.30%,

04/05/2029

5.90%,

11/15/2026

525

532

Energy

Transfer

LP

4.40%,

03/15/2027

5.55%,

02/15/2028

Kinder

Morgan

Inc

5.00%,

02/01/2029

500

511

5.10%,

08/01/2029

ONEOK

Inc

4.25%,

09/24/2027

500

502

4.40%,

10/15/2029

5.55%,

11/01/2026

Williams

Cos

Inc/The

4.63%,

06/30/2030

5.40%,

03/02/2026

$

4,319

REITs

-

.57

%

American

Homes

Rent

LP

4.95%,

06/15/2030

American

Tower

Trust

#1

3.65%,

03/15/2048

(d) 270

5.49%,

03/15/2053

(d) 500

508

Omega

Healthcare

Investors

Inc

5.20%,

07/01/2030

Public

Storage

Operating

Co

4.38%,

07/01/2030

4.41%,

04/16/2027

Secured

Overnight

Financing

Rate

+

0.70%

SBA

Tower

Trust

1.63%,

05/15/2051

(d) 500

1.88%,

07/15/2050

(d) 125

2.33%,

07/15/2052

(d) 653

627

Welltower

OP

LLC

4.50%,

07/01/2030

$

3,423

Semiconductors

-

.26

%

Advanced

Micro

Devices

Inc

4.21%,

09/24/2026

4.32%,

03/24/2028

Broadcom

Inc

4.60%,

07/15/2030

5.05%,

07/12/2029

Marvell

Technology

Inc

4.75%,

07/15/2030

Schedule

of

Investments

Short-Term

Income

Account

December

31,

2025

See

accompanying

notes.

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Semiconductors

(continued)

Texas

Instruments

Inc

4.60%,

02/08/2029

(f) $

500

$

511

$

1,680

Software

-

.32

%

Oracle

Corp

4.20%,

09/27/2029

4.80%,

08/03/2028

(f) 350

Roper

Technologies

Inc

4.50%,

10/15/2029

Take-Two

Interactive

Software

Inc

4.95%,

03/28/2028

500

509

5.40%,

06/12/2029

$

1,763

Student

Loan

Asset

Backed

Securities

-

.00

%

Commonbond

Student

Loan

Trust

2018-BGS

3.56%,

09/25/2045

(d) 41

Commonbond

Student

Loan

Trust

2018-C-GS

3.87%,

02/25/2046

(d) 43

Commonbond

Student

Loan

Trust

2019-A-GS

2.54%,

01/25/2047

(d) 89

Commonbond

Student

Loan

Trust

2020-A-GS

1.98%,

08/25/2050

(d) 173

Commonbond

Student

Loan

Trust

2021-A-GS

1.20%,

03/25/2052

(d) 174

Commonbond

Student

Loan

Trust

2021-B-GS

1.17%,

09/25/2051

(d) 215

EDvestinU

Private

Education

Loan

Issue

No

LLC

1.80%,

11/25/2045

(d) 94

ELFI

Graduate

Loan

Program

2024-A

LLC

5.56%,

08/25/2049

(d) 428

Navient

Education

Loan

Trust

2025-A

5.02%,

07/15/2055

(d) 89

Navient

Private

Education

Refi

Loan

Trust

2019-A

3.42%,

01/15/2043

(d) 4

Navient

Private

Education

Refi

Loan

Trust

2019-G

2.40%,

10/15/2068

(d) 35

Navient

Private

Education

Refi

Loan

Trust

2020-D

1.69%,

05/15/2069

(d) 63

Navient

Private

Education

Refi

Loan

Trust

2020-F

1.22%,

07/15/2069

(d) 66

Navient

Private

Education

Refi

Loan

Trust

2020-G

1.17%,

09/16/2069

(d) 76

Navient

Private

Education

Refi

Loan

Trust

2020-H

1.31%,

01/15/2069

(d) 43

Navient

Private

Education

Refi

Loan

Trust

2021-A

0.84%,

05/15/2069

(d) 57

Navient

Private

Education

Refi

Loan

Trust

2021-B

0.94%,

07/15/2069

(d) 448

Navient

Private

Education

Refi

Loan

Trust

2021-C

1.06%,

10/15/2069

(d) 79

Navient

Private

Education

Refi

Loan

Trust

2021-E

0.97%,

12/16/2069

(d) 214

Navient

Private

Education

Refi

Loan

Trust

2021-F

1.11%,

02/18/2070

(d) 237

Navient

Private

Education

Refi

Loan

Trust

2022-A

2.23%,

07/15/2070

(d) 141

Navient

Private

Education

Refi

Loan

Trust

2023-A

5.51%,

10/15/2071

(d) 160

Navient

Private

Education

Refi

Loan

Trust

2024-A

5.66%,

10/15/2072

(d) 256

Navient

Refinance

Loan

Trust

2025-B

4.72%,

09/15/2055

(d) 283

Nelnet

Student

Loan

Trust

2021-A

1.36%,

04/20/2062

(d) 290

Nelnet

Student

Loan

Trust

2021-C

1.32%,

04/20/2062

(d) 94

Nelnet

Student

Loan

Trust

2021-D

1.63%,

04/20/2062

(d) 183

BONDS

(continued)

Principal

Amount

(000's)

Value

(000's)

Student

Loan

Asset

Backed

Securities

(continued)

SLM

Private

Credit

Student

Loan

Trust

2004-A

4.38%,

06/15/2033

$

$

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

0.66%

SLM

Private

Credit

Student

Loan

Trust

2006-A

4.27%,

06/15/2039

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

0.55%

SLM

Private

Credit

Student

Loan

Trust

2006-B

4.18%,

12/15/2039

1.00 x

CME

Term

Secured

Overnight

Financing

Rate

Month

+

0.46%

SMB

Private

Education

Loan

Trust

2021-A

1.07%,

01/15/2053

(d) 205

SMB

Private

Education

Loan

Trust

2021-B

1.31%,

07/17/2051

(d) 184

SMB

Private

Education

Loan

Trust

2021-D

1.34%,

03/17/2053

(d) 330

SMB

Private

Education

Loan

Trust

2021-E

1.68%,

02/15/2051

(d) 237

SMB

Private

Education

Loan

Trust

2022-C

4.48%,

05/16/2050

(d) 251

$

5,331

Telecommunications

-

.72

%

AT&T

Inc

1.70%,

03/25/2026

4.70%,

08/15/2030

Cisco

Systems

Inc

4.75%,

02/24/2030

4.85%,

02/26/2029

500

513

Crown

Castle

Towers

LLC

4.24%,

07/15/2048

(d) 290

NTT

Finance

Corp

4.62%,

07/16/2028

(d) 200

Sprint

Spectrum

Co

LLC

/

Sprint

Spectrum

Co

II

LLC

/

Sprint

Spectrum

Co

III

LLC

5.15%,

09/20/2029

(d) 225

$

2,295

Transportation

-

.30

%

Ryder

System

Inc

1.75%,

09/01/2026

TOTAL

BONDS

$

106,743

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

-

.51

%

Principal

Amount

(000's)

Value

(000's)

Federal

Home

Loan

Mortgage

Corporation

(FHLMC)

-

.01

%

6.40%,

09/01/2035

$

$

1.00 x

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

2.25%

Federal

National

Mortgage

Association

(FNMA)

-

.01

%

6.10%,

04/01/2033

1.00 x

Refinitiv

USD

IBOR

Consumer

Cash

Fallback

6-Month

+

1.51%

6.10%,

02/01/2037

1.00 x

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

Year

+

2.00%

6.14%,

07/01/2034

1.00 x

Refinitiv

USD

IBOR

Consumer

Cash

Fallback

12-Month

+

1.56%

6.37%,

08/01/2034

1.00 x

Refinitiv

USD

IBOR

Consumer

Cash

Fallback

12-Month

+

1.63%

6.52%,

12/01/2032

1.00 x

Refinitiv

USD

IBOR

Consumer

Cash

Fallback

12-Month

+

1.64%

6.75%,

01/01/2035

1.00 x

Refinitiv

USD

IBOR

Consumer

Cash

Fallback

12-Month

+

1.75%

$

Schedule

of

Investments

Short-Term

Income

Account

December

31,

2025

See

accompanying

notes.

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000's)

Value

(000's)

U.S.

Treasury

-

.49

%

3.25%,

06/30/2029

$

5,000

$

4,943

3.88%,

07/31/2027

7,500

7,544

4.00%,

01/15/2027

5,600

5,627

4.13%,

08/31/2030

500

509

4.50%,

07/15/2026

2,000

2,010

$

20,633

TOTAL

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

$

20,650

Total

Investments

$

133,427

Other

Assets

and

Liabilities

- (0.18)%

(235)

TOTAL

NET

ASSETS

-

100.00%

$

133,192

(a) 1-day

yield

shown

is

as

of

period

end.

(b) Security

or

a

portion

of

the

security

was

received

as

collateral

for

securities

lending.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$1,313

or

0.99%

of

net

assets.

(c) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(d) Security

exempt

from

registration

under

Rule

144A

of

the

Securities

Act

of

1933. These

securities

may

be

resold

in

transactions

exempt

from

registration,

normally

to

qualified

institutional

buyers.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$50,613

or

38.00%

of

net

assets.

(e) Rate

shown

is

as

of

period

end.

The

rate

may

be

a

variable

or

floating

rate

or

a

fixed

rate

which

may

convert

to

a

variable

or

floating

rate

in

the

future.

(f) Security

or

a

portion

of

the

security

was

on

loan. At

the

end

of

the

period,

the

value

of

these

securities

totaled

$1,262

or

0.95%

of

net

assets.

(g) Certain

variable

rate

securities

are

not

based

on

a

published

reference

rate

and

spread

but

are

determined

by

the

issuer

or

agent

and

are

based

on

current

market

conditions. These

securities

do

not

indicate

a

reference

rate

and

spread

in

their

description.

Rate

shown

is

the

rate

in

effect

as

of

period

end.

(h) Security

purchased

on

a

when-issued

basis.

(i) Non-income

producing

security

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

8,662

$

87,824

$

91,765

$

4,721

$

8,662

$

87,824

$

91,765

$

4,721

Income

(a) Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

$

—

$

—

$

—

$

$

—

$

—

$

—

Amounts

in

thousands.

(a) Amount

excludes

earnings

from

securities

lending

collateral.

Futures

Contracts

Description

and

Expiration

Date

Type

Contracts

Notional

Amount

Value

and

Unrealized

Appreciation/(Depreciation)

US

Year

Treasury

Note;

March

2026

Long

$

$

US

Year

Treasury Note;

March

2026

Long

2,733

(4)

Total

$

(3)

Amounts

in

thousands

except

contracts.

Schedule

of

Investments

SmallCap

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.06

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

.06

%

BlackRock

Liquidity

FedFund

-

Institutional

Class

3.64%

(a),(b)

880,846

$

881

Principal

Government

Money

Market

Fund

-

Class

3.67%

(a),(b),(c)

2,739,437

2,739

$

3,620

TOTAL

INVESTMENT

COMPANIES

$

3,620

COMMON

STOCKS

-

.08

%

Shares

Held

Value

(000's)

Aerospace

&

Defense

-

.26

%

AAR

Corp

(d) 17,400

$

1,441

Curtiss-Wright

Corp

3,100

1,709

Kratos

Defense

&

Security

Solutions

Inc

(d) 10,900

827

$

3,977

Agriculture

-

.47

%

Darling

Ingredients

Inc

(d) 31,400

1,130

Vital

Farms

Inc

(d) 45,700

1,460

$

2,590

Apparel

-

.59

%

PVH

Corp

15,500

1,039

Automobile

Parts

&

Equipment

-

.56

%

Visteon

Corp

10,300

980

Banks

-

.39

%

Ameris

Bancorp

25,700

1,909

First

Horizon

Corp

107,700

2,574

FNB

Corp/PA

119,758

2,048

Independent

Bank

Corp/MI

12,000

National

Bank

Holdings

Corp

15,400

585

Popular

Inc

21,400

2,665

Steel

Newco

Inc

15,400

1,469

UMB

Financial

Corp

23,200

2,669

Webster

Financial

Corp

31,307

1,971

Wintrust

Financial

Corp

14,500

2,027

$

18,307

Biotechnology

-

.35

%

Axsome

Therapeutics

Inc

(d) 12,700

2,320

Bicycle

Therapeutics

PLC

ADR

(d) 45,500

Bridgebio

Pharma

Inc

(d) 39,200

2,998

Cytokinetics

Inc

(d) 26,900

1,709

Denali

Therapeutics

Inc

(d) 54,400

898

Immunocore

Holdings

PLC

ADR

(d),(e)

26,000

903

Immunome

Inc

(d) 50,700

1,089

Insmed

Inc

(d) 23,200

4,037

Structure

Therapeutics

Inc

ADR

(d) 22,000

1,530

Viking

Therapeutics

Inc

(d) 19,100

672

$

16,478

Building

Materials

-

.96

%

Louisiana-Pacific

Corp

8,400

678

Modine

Manufacturing

Co

(d) 22,900

3,057

SPX

Technologies

Inc

(d) 10,580

2,117

Trex

Co

Inc

(d) 32,000

1,123

$

6,975

Chemicals

-

.60

%

Ingevity

Corp

(d) 17,900

1,059

Commercial

Services

-

.69

%

BOYD

GROUP

INC

5,500

876

Huron

Consulting

Group

Inc

(d) 16,100

2,784

Stride

Inc

(d) 16,700

1,084

$

4,744

Computers

-

.41

%

Netskope

Inc

(d),(e)

71,000

1,245

Parsons

Corp

(d) 21,700

1,341

Varonis

Systems

Inc

(d) 50,600

1,660

$

4,246

Distribution

&

Wholesale

-

.47

%

WESCO

International

Inc

10,600

2,593

Diversified

Financial

Services

-

.60

%

Hamilton

Lane

Inc

13,300

1,786

Jefferson

Capital

Inc

28,117

628

Lazard

Inc

45,600

2,214

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Diversified

Financial

Services

(continued)

OneMain

Holdings

Inc

18,900

$

1,277

Stifel

Financial

Corp

17,600

2,204

$

8,109

Electric

-

.94

%

Algonquin

Power

&

Utilities

Corp

269,900

1,660

Electrical

Components

&

Equipment

-

.12

%

EnerSys

13,409

1,968

Electronics

-

.71

%

Advanced

Energy

Industries

Inc

14,600

3,057

TD

SYNNEX

Corp

11,432

1,717

$

4,774

Engineering

&

Construction

-

.53

%

Dycom

Industries

Inc

(d) 9,100

3,075

MYR

Group

Inc

(d) 10,100

2,207

Sterling

Infrastructure

Inc

(d) 8,800

2,695

$

7,977

Entertainment

-

.00

%

TKO

Group

Holdings

Inc

8,400

1,756

Environmental

Control

-

.67

%

Montrose

Environmental

Group

Inc

(d) 47,500

1,179

Food

-

.74

%

Performance

Food

Group

Co

(d) 14,600

1,313

Gas

-

.57

%

Southwest

Gas

Holdings

Inc

34,500

2,761

Healthcare

-

Products

-

.69

%

Adaptive

Biotechnologies

Corp

(d) 40,500

658

Castle

Biosciences

Inc

(d) 65,800

2,559

Exact

Sciences

Corp

(d) 7,600

772

Natera

Inc

(d) 11,000

2,520

$

6,509

Healthcare

-

Services

-

.65

%

Addus

HomeCare

Corp

(d) 12,200

1,310

LifeStance

Health

Group

Inc

(d) 102,900

724

Lumexa

Imaging

Holdings

Inc

(d) 24,262

Privia

Health

Group

Inc

(d) 77,600

1,840

RadNet

Inc

(d) 29,700

2,119

$

6,442

Home

Builders

-

.29

%

Taylor

Morrison

Home

Corp

(d) 38,500

2,267

Insurance

-

.09

%

CNO

Financial

Group

Inc

39,371

1,672

Essent

Group

Ltd

20,800

1,352

Lincoln

National

Corp

54,300

2,418

$

5,442

Internet

-

.46

%

Lyft

Inc

(d) 41,600

806

Investment

Companies

-

.42

%

Riot

Platforms

Inc

(d) 58,500

741

Iron

&

Steel

-

.44

%

Commercial

Metals

Co

36,700

2,540

Leisure

Products

&

Services

-

.03

%

Life

Time

Group

Holdings

Inc

(d) 69,400

1,845

Lindblad

Expeditions

Holdings

Inc

(d) 51,000

735

Topgolf

Callaway

Brands

Corp

(d) 85,500

998

$

3,578

Machinery

-

Diversified

-

.69

%

Mueller

Water

Products

Inc

-

Class

A

83,800

1,996

Regal

Rexnord

Corp

7,000

982

$

2,978

Mining

-

.63

%

MP

Materials

Corp

(d) 12,200

616

OR

Royalties

Inc

14,000

$

1,112

Schedule

of

Investments

SmallCap

Account

December

31,

2025

See

accompanying

notes.

COMMON

STOCKS

(continued)

Shares

Held

Value

(000's)

Miscellaneous

Manufacturers

-

.24

%

Entegris

Inc

10,100

$

851

Fabrinet

(d) 2,940

1,339

$

2,190

Oil

&

Gas

-

.81

%

Chord

Energy

Corp

9,100

843

Gulfport

Energy

Corp

(d) 12,000

2,496

Patterson-UTI

Energy

Inc

263,439

1,610

$

4,949

Oil

&

Gas

Services

-

.81

%

Helix

Energy

Solutions

Group

Inc

(d) 148,100

929

Solaris

Energy

Infrastructure

Inc

49,100

2,257

$

3,186

Packaging

&

Containers

-

.42

%

Graphic

Packaging

Holding

Co

49,600

747

Pharmaceuticals

-

.65

%

Abivax

SA

ADR

(d) 8,600

1,160

AdaptHealth

Corp

(d) 58,600

584

BellRing

Brands

Inc

(d) 36,000

962

Collegium

Pharmaceutical

Inc

(d) 42,300

1,958

$

4,664

Pipelines

-

.56

%

Kinetik

Holdings

Inc

(e) 27,400

988

Real

Estate

-

.86

%

Newmark

Group

Inc

87,200

1,512

REITs

-

.05

%

American

Healthcare

REIT

Inc

19,100

899

American

Homes

Rent

44,100

1,416

Cousins

Properties

Inc

53,100

1,369

InvenTrust

Properties

Corp

47,400

1,337

Ladder

Capital

Corp

52,000

571

Rexford

Industrial

Realty

Inc

43,000

1,665

Sabra

Health

Care

REIT

Inc

86,400

1,636

$

8,893

Retail

-

.24

%

American

Eagle

Outfitters

Inc

27,800

733

BJ's

Wholesale

Club

Holdings

Inc

(d) 10,200

918

Boot

Barn

Holdings

Inc

(d) 7,300

1,288

Cava

Group

Inc

(d) 17,200

1,010

$

3,949

Semiconductors

-

.54

%

Allegro

MicroSystems

Inc

(d) 53,100

1,401

SiTime

Corp

(d) 8,700

3,073

$

4,474

Software

-

.50

%

Agilysys

Inc

(d) 12,900

1,533

Clearwater

Analytics

Holdings

Inc

(d) 79,000

1,906

JFrog

Ltd

(d) 39,800

2,486

Progress

Software

Corp

(d) 2,821

ServiceTitan

Inc

(d) 14,800

1,576

Sophia

Genetics

SA

(d),(e)

52,300

Vertex

Inc

(d) 50,254

1,004

Via

Transportation

Inc

(d),(e)

28,300

821

$

9,691

Telecommunications

-

.78

%

Credo

Technology

Group

Holding

Ltd

(d) 21,775

3,133

Transportation

-

.60

%

ArcBest

Corp

14,400

1,068

TOTAL

COMMON

STOCKS

$

176,344

Total

Investments

$

179,964

Other

Assets

and

Liabilities

- (2.14)%

(3,762)

TOTAL

NET

ASSETS

-

100.00%

$

176,202

(a) 1-day

yield

shown

is

as

of

period

end.

(b) Security

or

a

portion

of

the

security

was

received

as

collateral

for

securities

lending.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$3,341

or

1.90%

of

net

assets.

(c) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(d) Non-income

producing

security

(e) Security

or

a

portion

of

the

security

was

on

loan. At

the

end

of

the

period,

the

value

of

these

securities

totaled

$3,234

or

1.84%

of

net

assets.

Schedule

of

Investments

SmallCap

Account

December

31,

2025

See

accompanying

notes.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

$

60,862

$

58,617

$

2,739

$

$

60,862

$

58,617

$

2,739

Income

(a) Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

$

—

$

—

$

—

$

$

—

$

—

$

—

Amounts

in

thousands.

(a) Amount

excludes

earnings

from

securities

lending

collateral.

Schedule

of

Investments

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.89

%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

.86

%

iShares

Core

S&P

500

ETF

(a) 24,670

$

16,897

SPDR

S&P

500

ETF

Trust

(a) 4,930

3,362

State

Street

SPDR

Portfolio

S&P

500

ETF

(a) 54,863

4,401

Vanguard

S&P

500

ETF

(a) 8,068

5,060

$

29,720

Money

Market

Funds

-

.03

%

Principal

Government

Money

Market

Fund

-

Class

3.67%

(b),(c)

9,940

TOTAL

INVESTMENT

COMPANIES

$

29,730

TOTAL

PURCHASED

OPTIONS

-

16.15%

$

5,463

Total

Investments

$

35,193

Other

Assets

and

Liabilities

- (4.04)%

(1,366)

TOTAL

NET

ASSETS

-

100.00%

$

33,827

(a) Security

or

a

portion

of

the

security

was

pledged

to

cover

margin

requirements

for

options

contracts.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$11,146

or

32.95%

of

net

assets.

(b) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(c) 1-day

yield

shown

is

as

of

period

end.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

$

13,335

$

13,449

$

$

$

13,335

$

13,449

$

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

$

—

$

—

$

—

$

$

—

$

—

$

—

Amounts

in

thousands.

Options

Purchased

Options

Outstanding

Counterparty

Contracts/

Shares

Notional

Amount

Exercise

Price

Expiration

Date

Upfront

Premiums

Paid

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Call

-

S&P

500

Mini

Index

(a) N/A

$

$

.61

03/31/2026

$

4,390

$

5,355

$

965

Put

-

S&P

500

Mini

Index

(a) N/A

517

$

561

.19

03/31/2026

1,659

(1,551)

Total

$

6,049

$

5,463

$

(586)

Written

Options

Outstanding

Counterparty

Contracts/

Shares

Notional

Amount

Exercise

Price

Expiration

Date

Upfront

Premiums

Received

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Call

-

S&P

500

Mini

Index

(a) N/A

$

$

617

.31

03/31/2026

$

(329)

$

(1,241)

$

(912)

Put

-

S&P

500

Mini

Index

(a) N/A

517

$

505

.07

03/31/2026

(886)

(57)

829

Total

$

(1,215)

$

(1,298)

$

(83)

Amounts

in

thousands

except

contracts/shares.

(a) FLEX

Options

which

are

customized

exchange-traded

option

contracts.

Schedule

of

Investments

U.S.

LargeCap

S&P

500

Index

Buffer

January

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.42

%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

.29

%

iShares

Core

S&P

500

ETF

(a) 18,455

$

12,640

SPDR

S&P

500

ETF

Trust

(a) 3,707

2,528

State

Street

SPDR

Portfolio

S&P

500

ETF

(a) 40,958

3,286

Vanguard

S&P

500

ETF

(a) 6,046

3,792

$

22,246

Money

Market

Funds

-

.13

%

Principal

Government

Money

Market

Fund

-

Class

3.67%

(b),(c)

1,305,110

1,305

TOTAL

INVESTMENT

COMPANIES

$

23,551

TOTAL

PURCHASED

OPTIONS

-

7.30%

$

4,473

Total

Investments

$

28,024

Other

Assets

and

Liabilities

- 54.28%

33,270

TOTAL

NET

ASSETS

-

100.00%

$

61,294

(a) Security

or

a

portion

of

the

security

was

pledged

to

cover

margin

requirements

for

options

contracts.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$8,349

or

13.62%

of

net

assets.

(b) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(c) 1-day

yield

shown

is

as

of

period

end.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

—

$

49,325

$

48,020

$

1,305

$

—

$

49,325

$

48,020

$

1,305

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

$

—

$

—

$

—

$

$

—

$

—

$

—

Amounts

in

thousands.

Options

Purchased

Options

Outstanding

Counterparty

Contracts/

Shares

Notional

Amount

Exercise

Price

Expiration

Date

Upfront

Premiums

Paid

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Call

-

S&P

500

Mini

Index

(a) N/A

$

$

.85

12/31/2026

$

3,028

$

3,033

$

Put

-

S&P

500

Mini

Index

(a) N/A

$

684

.55

12/31/2026

1,405

1,440

Total

$

4,433

$

4,473

$

Written

Options

Outstanding

Counterparty

Contracts/

Shares

Notional

Amount

Exercise

Price

Expiration

Date

Upfront

Premiums

Received

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Call

-

S&P

500

Mini

Index

(a) N/A

$

$

753

.01

12/31/2026

$

(287)

$

(290)

$

(3)

Put

-

S&P

500

Mini

Index

(a) N/A

$

616

.10

12/31/2026

(793)

(823)

(30)

Total

$

(1,080)

$

(1,113)

$

(33)

Amounts

in

thousands

except

contracts/shares.

(a) FLEX

Options

which

are

customized

exchange-traded

option

contracts.

Schedule

of

Investments

U.S.

LargeCap

S&P

500

Index

Buffer

July

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.52

%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

.45

%

iShares

Core

S&P

500

ETF

(a) 33,167

$

22,717

SPDR

S&P

500

ETF

Trust

(a) 6,638

4,527

State

Street

SPDR

Portfolio

S&P

500

ETF

(a) 73,689

5,911

Vanguard

S&P

500

ETF

(a) 10,857

6,809

$

39,964

Money

Market

Funds

-

.07

%

Principal

Government

Money

Market

Fund

-

Class

3.67%

(b),(c)

31,228

TOTAL

INVESTMENT

COMPANIES

$

39,995

TOTAL

PURCHASED

OPTIONS

-

14.95%

$

6,756

Total

Investments

$

46,751

Other

Assets

and

Liabilities

- (3.47)%

(1,570)

TOTAL

NET

ASSETS

-

100.00%

$

45,181

(a) Security

or

a

portion

of

the

security

was

pledged

to

cover

margin

requirements

for

options

contracts.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$13,879

or

30.72%

of

net

assets.

(b) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(c) 1-day

yield

shown

is

as

of

period

end.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

871

$

44,341

$

45,181

$

$

871

$

44,341

$

45,181

$

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

$

—

$

—

$

—

$

$

—

$

—

$

—

Amounts

in

thousands.

Options

Purchased

Options

Outstanding

Counterparty

Contracts/

Shares

Notional

Amount

Exercise

Price

Expiration

Date

Upfront

Premiums

Paid

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Call

-

S&P

500

Mini

Index

(a) N/A

$

$

.21

06/30/2026

$

5,452

$

5,952

$

500

Put

-

S&P

500

Mini

Index

(a) N/A

678

$

620

.50

06/30/2026

2,093

804

(1,289)

Total

$

7,545

$

6,756

$

(789)

Written

Options

Outstanding

Counterparty

Contracts/

Shares

Notional

Amount

Exercise

Price

Expiration

Date

Upfront

Premiums

Received

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Call

-

S&P

500

Mini

Index

(a) N/A

$

$

682

.55

06/30/2026

$

(400)

$

(734)

$

(334)

Put

-

S&P

500

Mini

Index

(a) N/A

678

$

558

.45

06/30/2026

(1,170)

(398)

772

Total

$

(1,570)

$

(1,132)

$

Amounts

in

thousands

except

contracts/shares.

(a) FLEX

Options

which

are

customized

exchange-traded

option

contracts.

Schedule

of

Investments

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account

December

31,

2025

See

accompanying

notes.

INVESTMENT

COMPANIES

-

.39

%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

.39

%

iShares

Core

S&P

500

ETF

(a) 89,853

$

61,543

SPDR

S&P

500

ETF

Trust

(a) 18,044

12,305

State

Street

SPDR

Portfolio

S&P

500

ETF

(a) 199,585

16,011

Vanguard

S&P

500

ETF

(a) 29,452

18,470

$

108,329

Money

Market

Funds

-

.00

%

Principal

Government

Money

Market

Fund

-

Class

3.67%

(b),(c)

3,899

TOTAL

INVESTMENT

COMPANIES

$

108,333

TOTAL

PURCHASED

OPTIONS

-

21.39%

$

18,628

Total

Investments

$

126,961

Other

Assets

and

Liabilities

- (45.78)%

(39,869)

TOTAL

NET

ASSETS

-

100.00%

$

87,092

(a) Security

or

a

portion

of

the

security

was

pledged

to

cover

margin

requirements

for

options

contracts.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$39,739

or

45.63%

of

net

assets.

(b) Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

Act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(c) 1-day

yield

shown

is

as

of

period

end.

Affiliated

Securities

December

31,

2024

Purchases

Sales

December

31,

2025

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

7,529

$

68,775

$

76,300

$

$

7,529

$

68,775

$

76,300

$

Income

Realized

Gain/(Loss)

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

(Loss)

Principal

Government

Money

Market

Fund

-

Class

3.67%

$

$

—

$

—

$

—

$

$

—

$

—

$

—

Amounts

in

thousands.

Options

Purchased

Options

Outstanding

Counterparty

Contracts/

Shares

Notional

Amount

Exercise

Price

Expiration

Date

Upfront

Premiums

Paid

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Call

-

S&P

500

Mini

Index

(a) N/A

$

$

.69

09/30/2026

$

13,232

$

13,572

$

Put

-

S&P

500

Mini

Index

(a) N/A

1,802

$

668

.85

09/30/2026

6,364

5,056

(1,308)

Total

$

19,596

$

18,628

$

(968)

Written

Options

Outstanding

Counterparty

Contracts/

Shares

Notional

Amount

Exercise

Price

Expiration

Date

Upfront

Premiums

Received

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Call

-

S&P

500

Mini

Index

(a) N/A

564

$

$

735

.74

09/30/2026

$

(1,187)

$

(1,102)

$

Put

-

S&P

500

Mini

Index

(a) N/A

1,802

$

601

.97

09/30/2026

(3,627)

(2,687)

940

Total

$

(4,814)

$

(3,789)

$

1,025

Amounts

in

thousands

except

contracts/shares.

(a) FLEX

Options

which

are

customized

exchange-traded

option

contracts.

Glossary

to

the

Schedule

of

Investments

December

31,

2025

See

accompanying

notes.

Currency

Abbreviations

USD/$

United

States

Dollar

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Net

Asset

Value,

End

of

Period

BLUE

CHIP

ACCOUNT

Class

shares

2025(c)

$

14.50 ($

0.05)

$

1.74 $

1.69 $

16.19 Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

11.66 %

(d) $

24,412

0.90 %

(e),(f)

(0.44)

%

(e) 37.4 %

(g) (a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

(c) Period

from

April

30,

2025,

date

operations

commenced,

through

December

31,

2025. (d) Total

return

amounts

have

not

been

annualized.

(e) Computed

on

an

annualized

basis.

(f) Subject

to

Manager's

contractual

expense

limit.

(g) Period

from

January

1,

2025

through

December

31,

2025. Effective

May

1,

2025,

Class

shares

converted

into

Class

shares.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

BOND

MARKET

INDEX

ACCOUNT

Class

shares

2025

$

.21

$

.34

$

.32

$

.66

($

.41)

$

–

($

.41)

$

.46

2024

.40

.32

(0

.21)

.11

(0

.30)

–

(0

.30)

.21

2023

.13

.28

.21

.49

(0

.22)

–

(0

.22)

.40

2022

.76

.21

(1

.62)

(1

.41)

(0

.21)

(0

.01)

(0

.22)

.13

2021

.21

.17

(0

.37)

(0

.20)

(0

.22)

(0

.03)

(0

.25)

.76

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.16

%

$

1,802,149

.15

%

.66

%

.7

%

.08

2,160,284

.15

.42

.4

.51

2,440,279

.15

.07

.4

(13

.16)

2,290,071

.14

.19

.0

(1

.83)

2,900,608

.14

.58

.5

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

CORE

PLUS

BOND

ACCOUNT

Class

shares

2025

$

.42

$

.45

$

.25

$

.70

($

.41)

$

–

($

.41)

$

.71

2024

.63

.41

(0

.31)

.10

(0

.31)

–

(0

.31)

.42

2023

.42

.34

.15

.49

(0

.28)

–

(0

.28)

.63

2022

.48

.28

(1

.90)

(1

.62)

(0

.32)

(0

.12)

(0

.44)

.42

2021

.15

.25

(0

.30)

(0

.05)

(0

.32)

(0

.30)

(0

.62)

.48

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.46

%

$

246,054

.49

%

.68

%

.0

%

.90

204,623

.49

.25

.7

.34

199,271

.50

.57

.3

(14

.13)

187,023

.49

.76

.8

(0

.45)

236,382

.47

.12

.8

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

DIVERSIFIED

BALANCED

ACCOUNT

Class

shares

2025

$

.81

$

.45

$

.35

$

.80

($

.50)

($

.84)

($

.34)

$

.27

2024

.21

.37

.03

.40

(0

.33)

(0

.47)

(0

.80)

.81

2023

.57

.27

.57

.84

(0

.29)

(0

.91)

(1

.20)

.21

2022

.11

.28

(2

.96)

(2

.68)

(0

.40)

(1

.46)

(1

.86)

.57

2021

.58

.36

.55

.91

(0

.40)

(0

.98)

(1

.38)

.11

Class

shares

2025

.88

.39

.37

.76

(0

.45)

(1

.84)

(2

.29)

.35

2024

.26

.32

.05

.37

(0

.28)

(0

.47)

(0

.75)

.88

2023

.61

.24

.57

.81

(0

.25)

(0

.91)

(1

.16)

.26

2022

.15

.24

(2

.97)

(2

.73)

(0

.35)

(1

.46)

(1

.81)

.61

2021

.61

.31

.57

.88

(0

.36)

(0

.98)

(1

.34)

.15

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.46

%

$

34,570

.06

%

.01

%

.0

%

.86

34,312

.05

.51

.6

.17

33,872

.05

.95

.9

(14

.85)

32,564

.05

.79

.5

.06

41,982

.05

.00

.3

.09

468,973

.31

.60

.0

.67

585,489

.30

.14

.6

.86

701,248

.30

.68

.9

(15

.10)

715,788

.30

.52

.5

.83

962,935

.30

.72

.3

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

DIVERSIFIED

BALANCED

ADAPTIVE

ALLOCATION

ACCOUNT

Class

shares

2025

$

.30

$

.32

$

.52

$

.84

($

.31)

($

.89)

($

.20)

$

.94

2024

.66

.26

.73

.99

(0

.20)

(0

.15)

(0

.35)

.30

2023

.53

.19

.18

.37

(0

.15)

(0

.09)

(0

.24)

.66

2022

.27

.16

(1

.99)

(1

.83)

(0

.20)

(0

.71)

(0

.91)

.53

2021

.40

.22

.02

.24

(0

.17)

(0

.20)

(0

.37)

.27

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.00

%

$

216,884

.38

%

.67

%

.2

%

.54

234,904

.38

.17

.7

.08

241,311

.38

.76

.7

(13

.79)

207,220

.38

.40

.9

.08

229,787

.38

.67

.6

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

DIVERSIFIED

BALANCED

STRATEGIC

ALLOCATION

ACCOUNT

Class

shares

2025

$

.14

$

.31

$

.12

$

.43

($

.39)

($

.07)

($

.46)

$

.11

2024

.67

.26

.77

.03

(0

.23)

(0

.33)

(0

.56)

.14

2023

.00

.18

.22

.40

(0

.19)

(0

.54)

(0

.73)

.67

2022

.43

.17

(2

.27)

(2

.10)

(0

.35)

(0

.98)

(1

.33)

.00

2021

.65

.32

.03

.35

(0

.25)

(0

.32)

(0

.57)

.43

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.00

%

$

87,617

.31

%

(c) 2

.55

%

.6

%

.83

112,520

.31

(c) 2

.16

.6

.09

134,117

.31

(c) 1

.62

.4

(14

.63)

141,384

.31

(c) 1

.36

.0

.94

184,060

.31

(c) 2

.24

.7

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

(c) Subject

to

Manager's

contractual

expense

limit.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

DIVERSIFIED

GROWTH

ACCOUNT

Class

shares

2025

$

.51

$

.41

$

.06

$

.47

($

.55)

($

.27)

($

.82)

$

.16

2024

.35

.35

.77

.12

(0

.35)

(0

.61)

(0

.96)

.51

2023

.20

.27

.32

.59

(0

.29)

(1

.15)

(1

.44)

.35

2022

.68

.27

(3

.66)

(3

.39)

(0

.40)

(1

.69)

(2

.09)

.20

2021

.15

.37

.56

.93

(0

.38)

(1

.02)

(1

.40)

.68

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.86

%

$

1,852,824

.30

%

.24

%

.8

%

.26

2,382,875

.30

.90

.2

.60

3,076,955

.30

.59

.7

(15

.70)

3,045,729

.30

.47

.1

.79

3,974,179

.30

.74

.7

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

DIVERSIFIED

GROWTH

ADAPTIVE

ALLOCATION

ACCOUNT

Class

shares

2025

$

.35

$

.31

$

.64

$

.95

($

.30)

($

.95)

($

.25)

$

.05

2024

.42

.27

.08

.35

(0

.19)

(0

.23)

(0

.42)

.35

2023

.07

.20

.47

.67

(0

.14)

(0

.18)

(0

.32)

.42

2022

.07

.17

(2

.12)

(1

.95)

(0

.20)

(0

.85)

(1

.05)

.07

2021

.68

.23

.52

.75

(0

.16)

(0

.20)

(0

.36)

.07

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.31

%

$

1,453,120

.37

%

.34

%

.4

%

.88

1,548,784

.37

.08

.9

.33

1,440,339

.37

.68

.6

(13

.82)

1,196,821

.37

.36

.8

.89

1,277,128

.37

.69

.4

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

DIVERSIFIED

GROWTH

STRATEGIC

ALLOCATION

ACCOUNT

Class

shares

2025

$

.27

$

.31

$

.45

$

.76

($

.37)

($

.40)

($

.77)

$

.26

2024

.59

.26

.15

.41

(0

.24)

(0

.49)

(0

.73)

.27

2023

.75

.19

.58

.77

(0

.18)

(0

.75)

(0

.93)

.59

2022

.66

.17

(2

.54)

(2

.37)

(0

.40)

(1

.14)

(1

.54)

.75

2021

.33

.36

.58

.94

(0

.24)

(0

.37)

(0

.61)

.66

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.59

%

$

196,161

.31

%

.28

%

.2

%

.22

243,336

.31

.98

.1

.60

293,439

.31

.53

.6

(15

.12)

292,960

.30

.25

.9

.70

388,912

.30

.39

.4

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

DIVERSIFIED

INCOME

ACCOUNT

Class

shares

2025

$

.93

$

.39

$

.94

$

.33

($

.41)

($

.70)

($

.11)

$

.15

2024

.57

.30

.60

.90

(0

.26)

(0

.28)

(0

.54)

.93

2023

.00

.22

.08

.30

(0

.22)

(0

.51)

(0

.73)

.57

2022

.21

.21

(2

.41)

(2

.20)

(0

.29)

(0

.72)

(1

.01)

.00

2021

.82

.26

.77

.03

(0

.29)

(0

.35)

(0

.64)

.21

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Gross

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.38

%

$

180,099

.31

%

–

%

.96

%

.6

%

.11

214,228

.31

–

.35

.5

.20

246,966

.31

–

.80

.8

(14

.54)

254,300

.30

–

.58

.5

.96

325,983

.30

(c) 0

.30

(d) 1

.75

.8

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

(c) Subject

to

Manager's

voluntary

expense

limit.

(d) Excludes

expense

reimbursement

from

Manager.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

DIVERSIFIED

INTERNATIONAL

ACCOUNT

Class

shares

2025

$

.73

$

.31

$

.71

$

.02

($

.41)

($

.06)

($

.47)

$

.28

2024

.49

.26

.49

.75

(0

.51)

–

(0

.51)

.73

2023

.36

.25

.07

.32

(0

.19)

–

(0

.19)

.49

2022

.17

.31

(4

.21)

(3

.90)

(0

.42)

(1

.49)

(1

.91)

.36

2021

.77

.28

.46

.74

(0

.25)

(0

.09)

(0

.34)

.17

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.36

%

$

256,291

.86

%

.74

%

.7

%

.71

245,348

.85

.56

.5

.45

256,075

.93

.75

.5

(20

.00)

236,721

.92

.02

.9

.75

299,426

.90

.49

.6

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

EQUITY

INCOME

ACCOUNT

Class

shares

2025

$

.83

$

.51

$

.17

$

.68

($

.60)

($

.15)

($

.75)

$

.76

2024

.51

.56

.69

.25

(0

.64)

(0

.29)

(0

.93)

.83

2023

.54

.64

.20

.84

(0

.58)

(1

.29)

(1

.87)

.51

2022

.25

.59

(4

.25)

(3

.66)

(0

.60)

(3

.45)

(4

.05)

.54

2021

.54

.55

.82

.37

(0

.64)

(0

.02)

(0

.66)

.25

Class

shares

2025

.36

.42

.11

.53

(0

.53)

(3

.15)

(3

.68)

.21

2024

.11

.48

.63

.11

(0

.57)

(0

.29)

(0

.86)

.36

2023

.19

.57

.16

.73

(0

.52)

(1

.29)

(1

.81)

.11

2022

.87

.51

(4

.20)

(3

.69)

(0

.54)

(3

.45)

(3

.99)

.19

2021

.26

.47

.75

.22

(0

.59)

(0

.02)

(0

.61)

.87

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.50

%

$

590,661

.48

%

.60

%

.7

%

.50

615,060

.48

.88

.3

.22

598,294

.49

.41

.9

(10

.50)

625,764

.48

.99

.6

.47

701,625

.47

.73

.6

.25

88,823

.73

.36

.7

.23

73,952

.73

.63

.3

.93

65,603

.74

.16

.9

(10

.72)

56,495

.73

.75

.6

.15

53,723

.72

.48

.6

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

GLOBAL

EMERGING

MARKETS

ACCOUNT

Class

shares

2025

$

.33

$

.22

$

.48

$

.70

($

.12)

($

.21)

($

.33)

$

.70

2024

.69

.19

.76

.95

(0

.31)

–

(0

.31)

.33

2023

.39

.21

.45

.66

(0

.36)

–

(0

.36)

.69

2022

.67

.31

(4

.78)

(4

.47)

(0

.26)

(1

.55)

(1

.81)

.39

2021

.94

.21

(0

.08)

.13

(0

.09)

(0

.31)

(0

.40)

.67

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.27

%

$

81,605

.12

%

.23

%

.4

%

.51

65,475

.14

.22

.3

.53

67,407

.16

(c) 1

.50

.0

(22

.66)

68,015

.10

(c) 1

.98

.5

.58

90,815

.18

(c) 1

.01

.7

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

(c) Subject

to

Manager's

contractual

expense

limit.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

GOVERNMENT

&

HIGH

QUALITY

BOND

ACCOUNT

Class

shares

2025

$

.22

$

.33

$

.32

$

.65

($

.31)

($

.31)

$

.56

2024

.42

.28

(0

.22)

.06

(0

.26)

(0

.26)

.22

2023

.24

.23

.14

.37

(0

.19)

(0

.19)

.42

2022

.48

.12

(1

.24)

(1

.12)

(0

.12)

(0

.12)

.24

2021

.83

.04

(0

.17)

(0

.13)

(0

.22)

(0

.22)

.48

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.91

%

$

107,117

.50

%

.91

%

.0

%

.62

111,374

.52

.33

.9

.64

121,708

.53

.82

.6

(11

.81)

138,346

.50

.32

.4

(1

.32)

197,777

.50

.40

.7

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

LARGECAP

GROWTH

ACCOUNT

I

Class

shares

2025

$

.16

($

.08)

$

.57

$

.49

($

.97)

($

.97)

$

.68

2024

.42

(0

.04)

.07

.03

(2

.29)

(2

.29)

.16

2023

.22

–

.03

.03

(1

.83)

(1

.83)

.42

2022

.48

(0

.06)

(17

.54)

(17

.60)

(4

.66)

(4

.66)

.22

2021

.46

(0

.14)

.65

.51

(6

.49)

(6

.49)

.48

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.39

%

$

617,414

.67

%

(c) (0

.16)

%

.7

%

.14

645,210

.67

(c) (0

.10)

.9

.34

580,072

.69

(c) (0

.01)

.2

(34

.16)

439,493

.69

(c) (0

.16)

.1

.89

706,656

.66

(c) (0

.26)

.1

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

(c) Subject

to

Manager's

contractual

expense

limit.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

LARGECAP

S&P

500

INDEX

ACCOUNT

Class

shares

2025

$

.09

$

.28

$

.92

$

.20

($

.37)

($

.62)

($

.99)

$

.30

2024

.73

.29

.98

.27

(0

.37)

(1

.54)

(1

.91)

.09

2023

.24

.30

.36

.66

(0

.30)

(0

.87)

(1

.17)

.73

2022

.53

.29

(4

.92)

(4

.63)

(0

.28)

(2

.38)

(2

.66)

.24

2021

.94

.27

.77

.04

(0

.35)

(2

.10)

(2

.45)

.53

Class

shares

2025

.54

.21

.83

.04

(0

.32)

(4

.62)

(4

.94)

.64

2024

.30

.23

.88

.11

(0

.33)

(1

.54)

(1

.87)

.54

2023

.91

.25

.26

.51

(0

.25)

(0

.87)

(1

.12)

.30

2022

.13

.23

(4

.83)

(4

.60)

(0

.24)

(2

.38)

(2

.62)

.91

2021

.65

.21

.69

.90

(0

.32)

(2

.10)

(2

.42)

.13

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.62

%

$

2,313,176

.20

%

.11

%

.4

%

.74

2,564,595

.21

.21

.4

.97

2,735,181

.21

.49

.3

(18

.33)

2,516,267

.24

.34

.0

.33

3,162,615

.25

.11

.6

.31

76,978

.45

.86

.4

.39

(c) 69,311

.46

.96

.4

.68

(c) 52,310

.46

.24

.3

(18

.53)

42,034

.49

.10

.0

.05

46,634

.50

.86

.6

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

(c) Total

return

is

calculated

using

the

traded

net

asset

value

which

may

differ

from

the

reported

net

asset

value.

The

traded

net

asset

value

is

the

net

asset

value

which

a

shareholder

would

have

paid

or

received

from

a

subscription

or

redemption.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

LARGECAP

S&P

500

MANAGED

VOLATILITY

INDEX

ACCOUNT

Class

shares

2025

$

.24

$

.17

$

.62

$

.79

($

.30)

($

.18)

($

.48)

$

.55

2024

.95

.21

.22

.43

(0

.30)

(1

.84)

(2

.14)

.24

2023

.88

.22

.99

.21

(0

.20)

(0

.94)

(1

.14)

.95

2022

.86

.17

(3

.34)

(3

.17)

(0

.17)

(1

.64)

(1

.81)

.88

2021

.90

.15

.02

.17

(0

.23)

(1

.98)

(2

.21)

.86

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.13

%

$

119,014

.37

%

.01

%

.2

%

.16

147,935

.36

.21

.4

.67

178,475

.37

.45

.7

(16

.95)

181,155

.46

.09

.3

.55

239,895

.46

.84

.6

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

MIDCAP

ACCOUNT

Class

shares

2025

$

.22

$

.09

$

.73

$

.82

($

.19)

($

.80)

($

.99)

$

.05

2024

.02

.21

.30

.51

(0

.17)

(6

.14)

(6

.31)

.22

2023

.25

.17

.04

.21

–

(1

.44)

(1

.44)

.02

2022

.76

.11

(17

.16)

(17

.05)

(0

.11)

(6

.35)

(6

.46)

.25

2021

.69

–

.93

.93

(0

.09)

(4

.77)

(4

.86)

.76

Class

shares

2025

.94

(0

.08)

.70

.62

(0

.03)

(8

.80)

(8

.83)

.73

2024

.99

.05

.08

.13

(0

.04)

(6

.14)

(6

.18)

.94

2023

.56

.04

.83

.87

–

(1

.44)

(1

.44)

.99

2022

.89

(0

.03)

(16

.95)

(16

.98)

–

(6

.35)

(6

.35)

.56

2021

.08

(0

.18)

.76

.58

–

(4

.77)

(4

.77)

.89

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.78

%

$

533,589

.53

%

.13

%

.8

%

.27

(c) 645,646

.53

.31

.8

.08

(c) 573,406

.55

.30

.8

(22

.98)

554,971

.54

.19

.1

.53

711,126

.53

(0

.01)

.1

.52

48,474

.78

(0

.12)

.8

.98

48,746

.78

.07

.8

.74

41,324

.80

.07

.8

(23

.16)

32,800

.79

(0

.05)

.1

.20

38,773

.78

(0

.26)

.1

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

(c) Total

return

is

calculated

using

the

traded

net

asset

value

which

may

differ

from

the

reported

net

asset

value.

The

traded

net

asset

value

is

the

net

asset

value

which

a

shareholder

would

have

paid

or

received

from

a

subscription

or

redemption.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

PRINCIPAL

CAPITAL

APPRECIATION

ACCOUNT

Class

shares

2025

$

.72

$

.16

$

.53

$

.69

($

.23)

($

.51)

($

.74)

$

.67

2024

.30

.23

.81

.04

(0

.31)

(1

.31)

(1

.62)

.72

2023

.36

.30

.12

.42

(0

.28)

(2

.20)

(2

.48)

.30

2022

.87

.30

(7

.16)

(6

.86)

(0

.29)

(4

.36)

(4

.65)

.36

2021

.30

.28

.13

.41

(0

.33)

(1

.51)

(1

.84)

.87

Class

shares

2025

.74

.05

.38

.43

(0

.15)

(3

.51)

(3

.66)

.51

2024

.55

.13

.61

.74

(0

.24)

(1

.31)

(1

.55)

.74

2023

.78

.21

.98

.19

(0

.22)

(2

.20)

(2

.42)

.55

2022

.19

.21

(7

.04)

(6

.83)

(0

.22)

(4

.36)

(4

.58)

.78

2021

.81

.18

.99

.17

(0

.28)

(1

.51)

(1

.79)

.19

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.52

%

$

148,787

.63

%

.37

%

.0

%

.85

144,682

.63

.58

.9

.15

134,161

.65

.90

.6

(16

.42)

121,010

.63

.85

.1

.82

163,159

.63

.73

.6

.22

97,439

.88

.12

.0

.54

76,918

.88

.32

.9

.85

49,164

.90

.66

.6

(16

.62)

33,069

.88

.63

.1

.50

31,088

.88

.47

.6

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

PRINCIPAL

LIFETIME

2020

ACCOUNT

Class

shares

2025

$

.89

$

.43

$

.02

$

.45

($

.41)

($

.56)

($

.97)

$

.37

2024

.50

.37

.56

.93

(0

.38)

(0

.16)

(0

.54)

.89

2023

.62

.34

.06

.40

(0

.33)

(0

.19)

(0

.52)

.50

2022

.19

.30

(2

.47)

(2

.17)

(0

.45)

(0

.95)

(1

.40)

.62

2021

.99

.42

.94

.36

(0

.26)

(0

.90)

(1

.16)

.19

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.33

%

$

139,572

.01

%

.23

%

.1

%

.43

145,432

.01

.84

.8

.26

152,073

.02

.80

.0

(14

.38)

151,551

.01

.32

.4

.17

196,334

.00

.72

.3

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

PRINCIPAL

LIFETIME

2030

ACCOUNT

Class

shares

2025

$

.68

$

.42

$

.37

$

.79

($

.34)

($

.69)

($

.03)

$

.44

2024

.95

.34

.83

.17

(0

.30)

(0

.14)

(0

.44)

.68

2023

.70

.31

.42

.73

(0

.22)

(0

.26)

(0

.48)

.95

2022

.60

.25

(2

.87)

(2

.62)

(0

.38)

(0

.90)

(1

.28)

.70

2021

.51

.43

.41

.84

(0

.21)

(0

.54)

(0

.75)

.60

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.21

%

$

332,246

.01

%

.98

%

.1

%

.05

296,715

.00

.52

.1

.09

276,060

.01

.55

.2

(16

.84)

227,664

.00

.89

.6

.79

262,864

.00

.78

.8

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

PRINCIPAL

LIFETIME

2040

ACCOUNT

Class

shares

2025

$

.97

$

.50

$

.27

$

.77

($

.31)

($

.00)

($

.31)

$

.43

2024

.60

.36

.56

.92

(0

.31)

(0

.24)

(0

.55)

.97

2023

.59

.34

.28

.62

(0

.21)

(0

.40)

(0

.61)

.60

2022

.94

.25

(3

.85)

(3

.60)

(0

.55)

(1

.20)

(1

.75)

.59

2021

.09

.62

.13

.75

(0

.25)

(0

.65)

(0

.90)

.94

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.57

%

$

229,305

.01

%

.64

%

.7

%

.55

175,508

.01

.02

.5

.27

150,890

.02

.17

.2

(18

.10)

118,055

.01

.52

.2

.29

134,172

.01

.18

.9

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

PRINCIPAL

LIFETIME

2050

ACCOUNT

Class

shares

2025

$

.73

$

.43

$

.63

$

.06

($

.26)

($

.24)

($

.50)

$

.29

2024

.11

.28

.85

.13

(0

.25)

(0

.26)

(0

.51)

.73

2023

.96

.28

.52

.80

(0

.18)

(0

.47)

(0

.65)

.11

2022

.60

.20

(3

.88)

(3

.68)

(0

.59)

(1

.37)

(1

.96)

.96

2021

.47

.64

.32

.96

(0

.22)

(0

.61)

(0

.83)

.60

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.50

%

$

100,536

.02

%

.29

%

.6

%

.29

82,359

.01

.59

.5

.38

70,704

.03

.83

.8

(18

.81)

56,830

.01

.22

.0

.02

68,527

.01

.37

.1

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

PRINCIPAL

LIFETIME

2060

ACCOUNT

Class

shares

2025

$

.28

$

.44

$

.58

$

.02

($

.23)

($

.02)

($

.25)

$

.05

2024

.67

.29

.78

.07

(0

.22)

(0

.24)

(0

.46)

.28

2023

.56

.28

.42

.70

(0

.16)

(0

.43)

(0

.59)

.67

2022

.81

.19

(3

.71)

(3

.52)

(0

.52)

(1

.21)

(1

.73)

.56

2021

.49

.61

.33

.94

(0

.18)

(0

.44)

(0

.62)

.81

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.68

%

$

40,419

.04

%

.39

%

.6

%

.28

29,544

.03

.71

.1

.28

21,432

.09

.94

.1

(18

.78)

15,131

.04

(c) 1

.21

.5

.96

17,280

.03

(c) 3

.38

.3

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

(c) Subject

to

Manager's

contractual

expense

limit.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

PRINCIPAL

LIFETIME

STRATEGIC

INCOME

ACCOUNT

Class

shares

2025

$

.44

$

.40

$

.79

$

.19

($

.37)

($

.32)

($

.69)

$

.94

2024

.03

.35

.39

.74

(0

.31)

(0

.02)

(0

.33)

.44

2023

.12

.33

.76

.09

(0

.13)

(0

.05)

(0

.18)

.03

2022

.62

.28

(1

.93)

(1

.65)

(0

.37)

(0

.48)

(0

.85)

.12

2021

.84

.37

.21

.58

(0

.25)

(0

.55)

(0

.80)

.62

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.45

%

$

54,550

.03

%

.40

%

.6

%

.71

53,521

.02

.04

.4

.79

55,858

.05

.15

.3

(13

.09)

24,133

.03

.50

.6

.53

30,129

.02

.85

.6

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

REAL

ESTATE

SECURITIES

ACCOUNT

Class

shares

2025

$

.18

$

.44

($

.19)

$

.25

($

.29)

($

.66)

($

.95)

$

.48

2024

.12

.42

.67

.09

(0

.45)

(0

.58)

(1

.03)

.18

2023

.97

.44

.71

.15

(0

.35)

(0

.65)

(1

.00)

.12

2022

.82

.32

(6

.46)

(6

.14)

(0

.26)

(1

.45)

(1

.71)

.97

2021

.11

.28

.26

.54

(0

.33)

(1

.50)

(1

.83)

.82

Class

shares

2025

.22

.40

(0

.20)

.20

(0

.29)

(0

.66)

(0

.95)

.47

2024

.15

.71

.35

.06

(0

.41)

(0

.58)

(0

.99)

.22

2023

.00

.40

.71

.11

(0

.31)

(0

.65)

(0

.96)

.15

2022

.86

.28

(6

.47)

(6

.19)

(0

.22)

(1

.45)

(1

.67)

.00

2021

.16

.23

.26

.49

(0

.29)

(1

.50)

(1

.79)

.86

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.24

%

$

152,571

.78

%

.42

%

.8

%

.59

155,499

.79

.31

.8

.33

143,715

.80

.57

.2

(25

.41)

124,969

.79

.59

.5

.44

174,922

.82

.25

.1

.92

95,544

.03

.16

.8

.41

99,850

.04

.88

.8

.01

10,644

.05

.33

.2

(25

.58)

9,358

.04

.38

.5

.04

11,650

.07

.02

.1

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

SAM

BALANCED

PORTFOLIO

Class

shares

2025

$

.20

$

.38

$

.71

$

.09

($

.39)

($

.20)

($

.59)

$

.70

2024

.77

.33

.41

.74

(0

.31)

–

(0

.31)

.20

2023

.71

.28

.69

.97

(0

.33)

(0

.58)

(0

.91)

.77

2022

.11

.33

(3

.23)

(2

.90)

(0

.38)

(2

.12)

(2

.50)

.71

2021

.51

.35

.91

.26

(0

.28)

(0

.38)

(0

.66)

.11

Class

shares

2025

.92

.34

.66

.00

(0

.35)

(1

.20)

(1

.55)

.37

2024

.52

.29

.38

.67

(0

.27)

–

(0

.27)

.92

2023

.50

.24

.65

.89

(0

.29)

(0

.58)

(0

.87)

.52

2022

.84

.29

(3

.17)

(2

.88)

(0

.34)

(2

.12)

(2

.46)

.50

2021

.29

.32

.85

.17

(0

.24)

(0

.38)

(0

.62)

.84

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.00

%

$

410,491

.23

%

.41

%

.2

%

.62

435,292

.23

.21

.4

.00

449,622

.24

.09

.7

(16

.15)

438,565

.23

.17

.2

.74

588,703

.23

.00

.9

.65

150,926

.48

.20

.2

.38

149,715

.48

.01

.4

.65

140,962

.49

.87

.7

(16

.29)

129,635

.48

.98

.2

.39

156,241

.48

.83

.9

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

SAM

CONSERVATIVE

BALANCED

PORTFOLIO

Class

shares

2025

$

.74

$

.35

$

.01

$

.36

($

.36)

($

.29)

($

.65)

$

.45

2024

.05

.31

.68

.99

(0

.30)

–

(0

.30)

.74

2023

.23

.28

.93

.21

(0

.31)

(0

.08)

(0

.39)

.05

2022

.61

.30

(2

.25)

(1

.95)

(0

.30)

(1

.13)

(1

.43)

.23

2021

.80

.29

.95

.24

(0

.25)

(0

.18)

(0

.43)

.61

Class

shares

2025

.53

.32

.97

.29

(0

.33)

(0

.29)

(0

.62)

.20

2024

.86

.28

.66

.94

(0

.27)

–

(0

.27)

.53

2023

.05

.25

.92

.17

(0

.28)

(0

.08)

(0

.36)

.86

2022

.40

.27

(2

.22)

(1

.95)

(0

.27)

(1

.13)

(1

.40)

.05

2021

.61

.26

.93

.19

(0

.22)

(0

.18)

(0

.40)

.40

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.69

%

$

126,904

.24

%

.92

%

.4

%

.97

131,291

.24

.70

.5

.97

133,470

.25

.60

.4

(14

.45)

134,379

.24

.57

.1

.71

169,338

.23

.13

.2

.28

34,577

.49

.70

.4

.69

32,076

.49

.47

.5

.80

31,903

.50

.41

.4

(14

.69)

28,916

.49

.35

.1

.48

34,318

.48

.95

.2

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

SAM

CONSERVATIVE

GROWTH

PORTFOLIO

Class

shares

2025

$

.28

$

.47

$

.94

$

.41

($

.41)

($

.68)

($

.09)

$

.60

2024

.62

.37

.61

.98

(0

.32)

–

(0

.32)

.28

2023

.65

.31

.01

.32

(0

.34)

(1

.01)

(1

.35)

.62

2022

.82

.36

(4

.75)

(4

.39)

(0

.45)

(2

.33)

(2

.78)

.65

2021

.75

.44

.40

.84

(0

.29)

(0

.48)

(0

.77)

.82

Class

shares

2025

.80

.41

.88

.29

(0

.36)

(1

.68)

(2

.04)

.05

2024

.21

.32

.55

.87

(0

.28)

–

(0

.28)

.80

2023

.31

.27

.94

.21

(0

.30)

(1

.01)

(1

.31)

.21

2022

.39

.31

(4

.66)

(4

.35)

(0

.40)

(2

.33)

(2

.73)

.31

2021

.40

.39

.32

.71

(0

.24)

(0

.48)

(0

.72)

.39

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.56

%

$

219,389

.24

%

.05

%

.2

%

.23

213,465

.23

.73

.8

.37

205,429

.24

.66

.0

(17

.79)

190,273

.23

.75

.0

.75

242,713

.23

.85

.6

.31

207,767

.49

.80

.2

.94

194,942

.48

.51

.8

.05

181,031

.49

.45

.0

(17

.97)

155,472

.48

.52

.0

.44

192,114

.48

.67

.6

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

SAM

FLEXIBLE

INCOME

PORTFOLIO

Class

shares

2025

$

.13

$

.36

$

.74

$

.10

($

.42)

$

–

($

.42)

$

.81

2024

.75

.35

.37

.72

(0

.34)

–

(0

.34)

.13

2023

.17

.30

.63

.93

(0

.35)

–

(0

.35)

.75

2022

.17

.32

(2

.03)

(1

.71)

(0

.35)

(0

.94)

(1

.29)

.17

2021

.81

.32

.55

.87

(0

.31)

(0

.20)

(0

.51)

.17

Class

shares

2025

.97

.33

.72

.05

(0

.39)

–

(0

.39)

.63

2024

.59

.31

.38

.69

(0

.31)

–

(0

.31)

.97

2023

.02

.28

.61

.89

(0

.32)

–

(0

.32)

.59

2022

.00

.29

(2

.01)

(1

.72)

(0

.32)

(0

.94)

(1

.26)

.02

2021

.66

.30

.53

.83

(0

.29)

(0

.20)

(0

.49)

.00

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.96

%

$

84,591

.24

%

.13

%

.7

%

.69

93,732

.24

.15

.9

.37

99,003

.25

.87

.8

(13

.11)

108,390

.24

.82

.1

.89

148,266

.23

.41

.0

.61

31,259

.50

.92

.7

.43

(c) 33,506

.49

.86

.9

.21

(c) 37,028

.50

.72

.8

(13

.37)

34,633

.49

.58

.1

.61

45,586

.48

.31

.0

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

(c) Total

return

is

calculated

using

the

traded

net

asset

value

which

may

differ

from

the

reported

net

asset

value.

The

traded

net

asset

value

is

the

net

asset

value

which

a

shareholder

would

have

paid

or

received

from

a

subscription

or

redemption.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

SAM

STRATEGIC

GROWTH

PORTFOLIO

Class

shares

2025

$

.49

$

.46

$

.94

$

.40

($

.40)

($

.13)

($

.53)

$

.36

2024

.88

.37

.52

.89

(0

.28)

–

(0

.28)

.49

2023

.76

.28

.95

.23

(0

.31)

(0

.80)

(1

.11)

.88

2022

.09

.33

(5

.59)

(5

.26)

(0

.52)

(2

.55)

(3

.07)

.76

2021

.17

.53

.24

.77

(0

.26)

(0

.59)

(0

.85)

.09

Class

shares

2025

.94

.39

.85

.24

(0

.33)

(2

.13)

(2

.46)

.72

2024

.43

.31

.43

.74

(0

.23)

–

(0

.23)

.94

2023

.39

.22

.88

.10

(0

.26)

(0

.80)

(1

.06)

.43

2022

.62

.27

(5

.49)

(5

.22)

(0

.46)

(2

.55)

(3

.01)

.39

2021

.80

.46

.16

.62

(0

.21)

(0

.59)

(0

.80)

.62

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.86

%

$

239,375

.24

%

.65

%

.8

%

.02

225,322

.23

.45

.5

.86

203,367

.24

.31

.2

(18

.78)

174,041

.23

.45

.8

.86

223,578

.23

.97

.9

.61

252,405

.49

.43

.8

.68

225,336

.48

.23

.5

.58

196,700

.49

.07

.2

(18

.98)

164,885

.48

.22

.8

.54

205,369

.48

.76

.9

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

SHORT-TERM

INCOME

ACCOUNT

Class

shares

2025

$

.54

$

.10

$

.04

$

.14

($

.12)

$

–

($

.12)

$

.56

2024

.50

.10

.03

.13

(0

.09)

–

(0

.09)

.54

2023

.41

.08

.05

.13

(0

.04)

–

(0

.04)

.50

2022

.53

.04

(0

.13)

(0

.09)

(0

.03)

–

(0

.03)

.41

2021

.60

.03

(0

.05)

(0

.02)

(0

.04)

(0

.01)

(0

.05)

.53

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.48

%

$

133,192

.42

%

.02

%

.3

%

.09

133,871

.41

.02

.8

.60

135,924

.43

.40

.7

(3

.45)

134,122

.46

.74

.7

(0

.72)

140,532

.47

.09

.7

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

SMALLCAP

ACCOUNT

Class

shares

2025

$

.69

$

.03

$

.31

$

.34

($

.05)

($

.85)

($

.90)

$

.13

2024

.02

.07

.97

.04

(0

.06)

(0

.31)

(0

.37)

.69

2023

.03

.05

.98

.03

(0

.04)

–

(0

.04)

.02

2022

.05

.05

(4

.08)

(4

.03)

(0

.01)

(2

.98)

(2

.99)

.03

2021

.26

(0

.01)

.48

.47

(0

.06)

(0

.62)

(0

.68)

.05

Class

shares

2025

.54

(0

.01)

.28

.27

(0

.01)

(0

.85)

(0

.86)

.95

2024

.88

.03

.96

.99

(0

.02)

(0

.31)

(0

.33)

.54

2023

.91

.02

.96

.98

(0

.01)

–

(0

.01)

.88

2022

.93

.01

(4

.05)

(4

.04)

–

(2

.98)

(2

.98)

.91

2021

.17

(0

.06)

.47

.41

(0

.03)

(0

.62)

(0

.65)

.93

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.10

%

$

166,305

.84

%

.19

%

.0

%

.99

162,112

.84

.42

.5

.53

(c) 166,600

.85

.38

.6

(20

.63)

(c) 156,903

.84

.32

.0

.12

213,890

.82

(0

.04)

.6

.78

9,897

.10

(0

.06)

.0

.66

(c) 9,247

.09

.18

.5

.39

(c) 9,225

.10

.13

.6

(20

.88)

8,383

.09

.07

.0

.86

10,497

.07

(0

.29)

.6

(a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

(c) Total

return

is

calculated

using

the

traded

net

asset

value

which

may

differ

from

the

reported

net

asset

value.

The

traded

net

asset

value

is

the

net

asset

value

which

a

shareholder

would

have

paid

or

received

from

a

subscription

or

redemption.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

U.S.

LARGECAP

S&P

500

INDEX

BUFFER

APRIL

ACCOUNT

(c) Class

shares

2025

$

.45

$

.02

$

.22

$

.24

$

–

($

.21)

($

.21)

$

.48

2024

.90

.03

.82

.85

(0

.06)

(1

.24)

(1

.30)

.45

2023(g)

.00

.03

.25

.28

(0

.06)

(1

.32)

(1

.38)

.90

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.95

%

$

33,827

.95

%

(d) 0

.15

%

.3

%

.41

(e) 37,944

.96

(d) ,(f)

.31

.4

.87

(e) ,(h)

22,730

.98

(d) ,(i)

,(j)

.43

(i) 182

.4

(i) (a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

(c) Effective

May

1,

2025,

U.S.

LargeCap

Buffer

April

Account

changed

its

name

to

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account.

(d) Subject

to

Manager's

contractual

expense

limit.

(e) Total

return

is

calculated

using

the

traded

net

asset

value

which

may

differ

from

the

reported

net

asset

value.

The

traded

net

asset

value

is

the

net

asset

value

which

a

shareholder

would

have

paid

or

received

from

a

subscription

or

redemption.

(f) Includes

0.01%

of

interest

expense

associated

with

borrowings.

The

expense

is

not

subject

to

the

Manager's

contractual

expense

limit.

(g) Period

from

March

29,

2023,

date

operations

commenced,

through

December

31,

2023. (h) Total

return

amounts

have

not

been

annualized.

(i) Computed

on

an

annualized

basis.

(j) Includes

0.03%

of

interest

expense

associated

with

borrowings.

The

expense

is

not

subject

to

the

Manager's

contractual

expense

limit.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

U.S.

LARGECAP

S&P

500

INDEX

BUFFER

JANUARY

ACCOUNT

(c) Class

shares

2025

$

.87

$

.02

$

.43

$

.45

($

.05)

($

.79)

($

.84)

$

.48

2024

.07

.04

.78

.82

(0

.02)

–

(0

.02)

.87

2023

.99

.05

.90

.95

(0

.07)

(1

.80)

(1

.87)

.07

2022(h)

.00

–

(0

.01)

(0

.01)

–

–

–

.99

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.74

%

(d) $

61,294

.96

%

(e) ,(f)

.16

%

.3

%

.29

(d) 68,269

.96

(e) ,(f)

.33

.8

.42

(d) 58,333

.98

(e) ,(g)

.47

.3

.00

(d) ,(i)

26,581

.95

(e) ,(j)

.20

(j) 0

.0

(j) (a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

(c) Effective

May

1,

2025,

U.S.

LargeCap

Buffer

January

Account

changed

its

name

to

U.S.

LargeCap

S&P

500

Index

Buffer

January

Account.

(d) Total

return

is

calculated

using

the

traded

net

asset

value

which

may

differ

from

the

reported

net

asset

value.

The

traded

net

asset

value

is

the

net

asset

value

which

a

shareholder

would

have

paid

or

received

from

a

subscription

or

redemption.

(e) Subject

to

Manager's

contractual

expense

limit.

(f) Includes

0.01%

of

interest

expense

associated

with

borrowings.

The

expense

is

not

subject

to

the

Manager's

contractual

expense

limit.

(g) Includes

0.03%

of

interest

expense

associated

with

borrowings.

The

expense

is

not

subject

to

the

Manager's

contractual

expense

limit.

(h) Period

from

December

28,

2022,

date

operations

commenced,

through

December

31,

2022. (i) Total

return

amounts

have

not

been

annualized.

(j) Computed

on

an

annualized

basis.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

U.S.

LARGECAP

S&P

500

INDEX

BUFFER

JULY

ACCOUNT

(c) Class

shares

2025

$

.64

$

.02

$

.75

$

.77

($

.02)

($

.20)

($

.22)

$

.19

2024

.67

.04

.04

.08

–

(0

.11)

(0

.11)

.64

2023

.16

.07

.78

.85

(0

.04)

(0

.30)

(0

.34)

.67

2022(g)

.00

.04

.15

.19

(0

.03)

–

(0

.03)

.16

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.26

%

$

45,181

.97

%

(d) ,(e)

.15

%

.9

%

.89

38,893

.96

(d) ,(f)

.29

.4

.23

54,229

.96

(d) ,(f)

.61

.3

.93

(h) 26,247

.95

(d) ,(i)

.72

(i) 20

.0

(i) (a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

(c) Effective

May

1,

2025,

U.S.

LargeCap

Buffer

July

Account

changed

its

name

to

U.S.

LargeCap

S&P

500

Index

Buffer

July

Account.

(d) Subject

to

Manager's

contractual

expense

limit.

(e) Includes

0.02%

of

interest

expense

associated

with

borrowings.

The

expense

is

not

subject

to

the

Manager's

contractual

expense

limit.

(f) Includes

0.01%

of

interest

expense

associated

with

borrowings.

The

expense

is

not

subject

to

the

Manager's

contractual

expense

limit.

(g) Period

from

June

29,

2022,

date

operations

commenced,

through

December

31,

2022. (h) Total

return

amounts

have

not

been

annualized.

(i) Computed

on

an

annualized

basis.

Financial

Highlights

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

December

(except

as

noted):

Net

Asset

Value,

Beginning

of

Period

Net

Investment

Income

(Loss)(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

Investments

Total

From

Investment

Operations

Dividends

from

Net

Investment

Income

Distributions

from

Realized

Gains

Total

Dividends

and

Distributions

Net

Asset

Value,

End

of

Period

U.S.

LARGECAP

S&P

500

INDEX

BUFFER

OCTOBER

ACCOUNT

(c) Class

shares

2025

$

.89

$

.03

$

.74

$

.77

($

.05)

($

.70)

($

.75)

$

.91

2024

.70

.04

.20

.24

(0

.01)

(0

.04)

(0

.05)

.89

2023

.51

.05

.98

.03

(0

.05)

(0

.79)

(0

.84)

.70

2022(g)

.00

.02

.51

.53

(0

.02)

–

(0

.02)

.51

Financial

Highlights

(Continued)

Principal

Variable

Contracts

Funds,

Inc.

See

accompanying

notes.

Total

Return(b)

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

.10

%

$

87,092

.96

%

(d) ,(e)

.19

%

.5

%

.18

59,841

.96

(d) ,(e)

.32

.9

.45

18,800

.97

(d) ,(f)

.47

.4

.29

(h) 17,978

.99

(d) ,(i)

,(j)

.68

(i) 180

.0

(i) (a) Calculated

based

on

average

shares

outstanding

during

the

period.

(b) Total

return

does

not

reflect

charges

attributable

to

separate

accounts.

Inclusion

of

these

charges

would

reduce

the

amounts

shown.

(c) Effective

May

1,

2025,

U.S.

LargeCap

Buffer

October

Account

changed

its

name

to

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account.

(d) Subject

to

Manager's

contractual

expense

limit.

(e) Includes

0.01%

of

interest

expense

associated

with

borrowings.

The

expense

is

not

subject

to

the

Manager's

contractual

expense

limit.

(f) Includes

0.02%

of

interest

expense

associated

with

borrowings.

The

expense

is

not

subject

to

the

Manager's

contractual

expense

limit.

(g) Period

from

September

29,

2022,

date

operations

commenced,

through

December

31,

2022. (h) Total

return

amounts

have

not

been

annualized.

(i) Computed

on

an

annualized

basis.

(j) Includes

0.04%

of

interest

expense

associated

with

borrowings.

The

expense

is

not

subject

to

the

Manager's

contractual

expense

limit.

Report

of

Independent

Registered

Public

Accounting

Firm

To

the

Shareholders

and

the

Board

of

Directors

of

Principal

Variable

Contracts

Funds,

Inc.

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statements

of

assets

and

liabilities

of

Principal

Variable

Contracts

Funds,

Inc.

(the

"Fund")

(comprising

Blue

Chip

Account,

Bond

Market

Index

Account,

Core

Plus

Bond

Account,

Diversified

Balanced

Account,

Diversified

Balanced

Adaptive

Allocation

Account,

Diversified

Balanced

Strategic

Allocation

Account,

Diversified

Growth

Account,

Diversified

Growth

Adaptive

Allocation

Account,

Diversified

Growth

Strategic

Allocation

Account,

Diversified

Income

Account,

Diversified

International

Account,

Equity

Income

Account,

Global

Emerging

Markets

Account,

Government

&

High

Quality

Bond

Account,

LargeCap

Growth

Account

I,

LargeCap

S&P

500

Index

Account,

LargeCap

S&P

500

Managed

Volatility

Index

Account,

MidCap

Account,

Principal

Capital

Appreciation

Account,

Principal

LifeTime

2020

Account,

Principal

LifeTime

2030

Account,

Principal

LifeTime

2040

Account,

Principal

LifeTime

2050

Account,

Principal

LifeTime

2060

Account,

Principal

LifeTime

Strategic

Income

Account,

Real

Estate

Securities

Account,

SAM

Balanced

Portfolio,

SAM

Conservative

Balanced

Portfolio,

SAM

Conservative

Growth

Portfolio,

SAM

Flexible

Income

Portfolio,

SAM

Strategic

Growth

Portfolio,

Short-Term

Income

Account,

SmallCap

Account,

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account

(formerly

U.S.

LargeCap

Buffer

April

Account),

U.S.

LargeCap

S&P

500

Index

Buffer

January

Account

(formerly

U.S.

LargeCap

Buffer

January

Account),

U.S.

LargeCap

S&P

500

Index

Buffer

July

Account

(formerly

U.S.

LargeCap

Buffer

July

Account),

and

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account

(formerly

U.S.

LargeCap

Buffer

October

Account)

(collectively

referred

to

as

the

"Funds")),

including

the

schedules

of

investments,

as

of

December

31,

2025,

and

the

related

statements

of

operations

and

changes

in

net

assets,

and

the

financial

highlights

for

each

of

the

periods

indicated

in

the

table

below

and

the

related

notes

(collectively

referred

to

as

the

"financial

statements").

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

each

of

the

Funds

comprising

the

Fund

at

December

31,

2025,

the

results

of

their

operations,

changes

in

net

assets

and

financial

highlights

for

each

of

the

periods

indicated

in

the

table

below,

in

conformity

with

U.S.

generally

accepted

accounting

principles.

Funds

comprising

the

Fund

Statement

of

operations

Statements

of

changes

in

net

assets

Financial

highlights

Bond

Market

Index

Account

Core

Plus

Bond

Account

Diversified

Balanced

Account

Diversified

Balanced

Adaptive

Allocation

Account

Diversified

Balanced

Strategic

Allocation

Account

Diversified

Growth

Account

Diversified

Growth

Adaptive

Allocation

Account

Diversified

Growth

Strategic

Allocation

Account

Diversified

Income

Account

Diversified

International

Account

Equity

Income

Account

Global

Emerging

Markets

Account

Government

&

High

Quality

Bond

Account

LargeCap

Growth

Account

I

LargeCap

S&P

500

Index

Account

LargeCap

S&P

500

Managed

Volatility

Index

Account

MidCap

Account

Principal

Capital

Appreciation

Account

Principal

LifeTime

2020

Account

Principal

LifeTime

2030

Account

Principal

LifeTime

2040

Account

Principal

LifeTime

2050

Account

Principal

LifeTime

2060

Account

Principal

LifeTime

Strategic

Income

Account

Real

Estate

Securities

Account

SAM

Balanced

Portfolio

SAM

Conservative

Balanced

Portfolio

SAM

Conservative

Growth

Portfolio

SAM

Flexible

Income

Portfolio

SAM

Strategic

Growth

Portfolio

Short-Term

Income

Account

SmallCap

Account

For

the

year

ended

December

31,

2025

For

each

of

the

two

years

in

the

period

ended

December

31,

2025

For

each

of

the

five

years

in

the

period

ended

December

31,

2025

Report

of

Independent

Registered

Public

Accounting

Firm

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund's

management.

Our

responsibility

is

to

express

an

opinion

on

each

of

the

Funds'

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

("PCAOB")

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

The

Fund

is

not

required

to

have,

nor

were

we

engaged

to

perform,

an

audit

of

the

Fund's

internal

control

over

financial

reporting.

As

part

of

our

audits,

we

are

required

to

obtain

an

understanding

of

internal

control

over

financial

reporting

but

not

for

the

purpose

of

expressing

an

opinion

on

the

effectiveness

of

the

Fund's

internal

control

over

financial

reporting.

Accordingly,

we

express

no

such

opinion.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

December

31,

2025,

by

correspondence

with

the

custodian,

agent

banks,

brokers,

portfolio

company

management

and

transfer

agents;

when

replies

were

not

received

from

agent

banks

or

brokers,

we

performed

other

auditing

procedures.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

We

have

served

as

the

auditor

of

one

or

more

Principal

investment

companies

since

1969. Minneapolis,

Minnesota

February

20,

2026

Funds

comprising

the

Fund

Statement

of

operations

Statements

of

changes

in

net

assets

Financial

highlights

Blue

Chip

Account

For

the

year

ended

December

31,

2025

For

each

of

the

two

years

in

the

period

ended

December

31,

2025

For

the

period

from

April

30,

2025,

date

operations

commenced

through

December

31,

2025

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account

(formerly

U.S.

Large

Cap

Buffer

April

Account)

For

the

year

ended

December

31,

2025

For

Each

of

the

two

years

in

the

period

ending

December

31,

2025

For

each

of

the

two

years

in

the

period

ended

December

31,

2025

and

the

period

from

March

29,

2023,

date

operations

commenced,

through

December

31,

2023

U.S.

LargeCap

S&P

500

Index

Buffer

January

Account

(formerly

U.S.

Large

Cap

Buffer

January

Account)

For

the

year

ended

December

31,

2025

For

each

of

the

two

years

in

the

period

ended

December

31,

2025

For

each

of

the

three

years

in

the

period

ended

December

31,

2025

and

the

period

from

December

28,

2022,

date

operations

commenced,

through

December

31,

2022

U.S.

LargeCap

S&P

500

Index

Buffer

July

Account

(formerly

U.S.

Large

Cap

Buffer

July

Account)

For

the

year

ended

December

31,

2025

For

each

of

the

two

years

in

the

period

ended

December

31,

2025

For

each

of

the

three

years

in

the

period

ended

December

31,

2025

and

the

period

from

June

29,

2022,

date

operations

commenced,

through

December

31,

2022

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account

(formerly

U.S.

Large

Cap

Buffer

October

Account)

For

the

year

ended

December

31,

2025

For

each

of

the

two

years

in

the

period

ended

December

31,

2025

For

each

of

the

three

years

in

the

period

ended

December

31,

2025

and

the

period

from

September

29,

2022

date

operations

commenced,

through

December

31,

2022

Principal

Variable

Contracts

Funds,

Inc.

Notification

of

Source

of

Distributions

Pursuant

to

Rule

19a-1

of

the

Investment

Company

Act

of

1940

As

noted

in

the

table

provided

below,

certain

of

the

Funds

made

distributions

for

the

month

of

September

2025

for

which

a

portion

is

estimated

to

be

in

excess

of

the

Fund's

current

and

accumulated

net

income.

As

of

this

month

end,

the

estimated

sources

of

these

distributions

were

as

follows:

The

ultimate

composition

of

these

distributions

may

vary

from

the

estimates

provided

above

due

to

a

variety

of

factors

including

future

income

and

expenses,

and

realized

gains

and

losses

from

the

purchase

and

sale

of

securities.

Please

note

that

this

information

is

being

provided

to

satisfy

certain

notice

requirements

under

the

Investment

Company

Act

of

1940. Tax

reporting

information

for

shareholders

of

the

Funds

will

not

be

available

until

the

end

of

the

Funds'

fiscal

year.

As

a

result,

shareholders

should

not

use

the

information

provided

in

this

notice

for

tax

reporting

purposes.

September

2025

Fund

Net

Income

Realized

Gain

Capital

Sources

Diversified

International

Account

91.95%

8.05%

0.00%

Federal

Income

Tax

Information

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

(unaudited)

Long-Term

Capital

Gain

Dividends.

Certain

funds

distributed

long-term

capital

gain

dividends

during

the

fiscal

year

ended

December

31,

2025

.

Details

of

designated

long-term

capital

gain

dividends

for

federal

income

tax

purposes

are

shown

in

the

notes

to

financial

statements.

To

the

extent

necessary

to

distribute

such

capital

gains,

certain

funds

may

also

utilize,

and

hereby

designate,

earnings

and

profits

distributed

to

shareholders

on

redemptions

of

shares

as

part

of

the

Dividends

Paid

Deduction.

Dividends

Received

Deduction

("DRD").

For

corporate

shareholders,

the

percentage

of

ordinary

income

distributions

(dividend

income

and

short-term

gains,

if

any)

for

the

year

ended

December

31,

2025

,

that

qualifies

for

the

DRD

are

as

follows:

Foreign

Taxes

Paid.

The

following

funds

elect

under

the

Internal

Revenue

Code

Section

("IRC")

853

to

pass

through

foreign

taxes

paid

to

their

shareholders.

The

total

amounts

of

foreign

taxes

reported

on

a

per

share

basis

in

the

year

ended

December

31,

2025

,

are

as

follows:

DRD

Blue

Chip

Account

0.00 %

Bond

Market

Index

Account

0.00 Core

Plus

Bond

Account

0.13 Diversified

Balanced

Account

24.88 Diversified

Balanced

Adaptive

Allocation

Account

16.73 Diversified

Balanced

Strategic

Allocation

Account

3.45 Diversified

Growth

Account

34.69 Diversified

Growth

Adaptive

Allocation

Account

24.75 Diversified

Growth

Strategic

Allocation

Account

4.49 Diversified

Income

Account

17.01 Diversified

International

Account

0.54 Equity

Income

Account

82.47 Global

Emerging

Markets

Account

0.38 Government

&

High

Quality

Bond

Account

0.00 LargeCap

Growth

Account

I

100.00 LargeCap

S&P

500

Index

Account

89.63 LargeCap

S&P

500

Managed

Volatility

Index

Account

0.00 MidCap

Account

100.00 Principal

Capital

Appreciation

Account

57.08 Principal

LifeTime

2020

Account

9.20 Principal

LifeTime

2030

Account

13.58 Principal

LifeTime

2040

Account

23.46 Principal

LifeTime

2050

Account

32.32 Principal

LifeTime

2060

Account

29.92 Principal

LifeTime

Strategic

Income

Account

7.21 Real

Estate

Securities

Account

0.89 SAM

Balanced

Portfolio

23.30 SAM

Conservative

Balanced

Portfolio

15.92 SAM

Conservative

Growth

Portfolio

40.39 SAM

Flexible

Income

Portfolio

10.72 SAM

Strategic

Growth

Portfolio

53.92 Short-Term

Income

Account

0.00 SmallCap

Account

45.76 U.S.

LargeCap

S&P

500

Index

Buffer

April

Account

0.00 U.S.

LargeCap

S&P

500

Index

Buffer

January

Account

4.84 U.S.

LargeCap

S&P

500

Index

Buffer

July

Account

5.25 U.S.

LargeCap

S&P

500

Index

Buffer

October

Account

69.84 Foreign

Taxes

Per

Share

Foreign

Source

Income

Diversified

Balanced

Account

$

0.0005 6.49%

Diversified

Balanced

Adaptive

Allocation

Account

0.0004 4.98 Diversified

Balanced

Strategic

Allocation

Account

0.0004 6.16 Diversified

Growth

Account

0.0010 9.64 Diversified

Growth

Adaptive

Allocation

Account

0.0006 8.23 Diversified

Growth

Strategic

Allocation

Account

0.0007 9.09 Diversified

Income

Account

0.0003 3.52 Diversified

International

Account

0.0453 71.02 Global

Emerging

Markets

Account

0.1588 100.00 Federal

Income

Tax

Information

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

(unaudited)

The

funds

may

receive

a

refund

of

taxes

that

can

result

in

a

redetermination

of

historical

foreign

taxes

paid

in

accordance

with

IRC

Section

905(c).

The

Funds

will

provide

by

February

28th

annually,

when

applicable,

any

foreign

tax

redetermination

on

Principal's

Tax

Center

website

under

the

Principal

Variable

Contracts

Funds,

Inc.'s

Foreign

Tax

Redetermination

Notices.

The

latest

Federal

Income

Tax

Information

is

available

on

Principal's

Tax

Center

website.

Website:

https://www.principal.com/tax-center

Please

consult

your

tax

advisor

if

you

have

any

questions.

Foreign

Taxes

Per

Share

Foreign

Source

Income

Principal

LifeTime

2020

Account

$

0.0041 6.91%

Principal

LifeTime

2030

Account

0.0055 10.71 Principal

LifeTime

2040

Account

0.0088 18.72 Principal

LifeTime

2050

Account

0.0113 25.75 Principal

LifeTime

2060

Account

0.0100 24.67 Principal

LifeTime

Strategic

Income

Account

0.0029 5.42 SAM

Balanced

Portfolio

0.0065 14.22 SAM

Conservative

Balanced

Portfolio

0.0028 10.71 SAM

Conservative

Growth

Portfolio

0.0116 22.09 SAM

Flexible

Income

Portfolio

0.0013 10.26 SAM

Strategic

Growth

Portfolio

0.0180 31.71 Changes

in

and

Disagreements

with

Accountants

(N-CSR

Item

8)

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

During

the

two

most

recent

fiscal

years

and

any

subsequent

interim

period,

there

have

been

no

changes

in

or

disagreements

with

Accountants.

Proxy

Disclosures

(N-CSR

Item

9)

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

During

the

period

covered

by

this

report,

the

following

matters

were

submitted

through

the

solicitation

of

proxies

or

otherwise.

Special

Meeting

of

Shareholders

-

July

15,

2025

Approval

to

change

the

Fund's

sub-classification

under

the

Investment

Company

Act

of

1940,

as

amended

from

"diversified"

to

"non-

diversified"

and

to

change

the

related

fundamental

investment

restriction

for

Blue

Chip

Account.

Shares

Voted

For

1,323,909

Against

71,717

Abstained

252,755

Remuneration

Paid

to

Directors,

Officers

and

Others

(N-CSR

Item

10)

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

The

Principal

Variable

Contracts

Funds,

Inc.

(the

"Funds")

do

not

pay

any

remuneration

to

its

officers

or

to

any

Board

Members

who

serve

as

Interested

Board

Members.

The

Board

annually

considers

a

proposal

to

reimburse

the

Manager

for

certain

expenses,

including

a

portion

of

the

Chief

Compliance

Officer's

compensation.

If

the

proposal

is

adopted,

these

amounts

are

allocated

across

all

Funds

based

on

relative

net

assets

of

each

portfolio.

Directors'

expenses

and

Chief

Compliance

Officer's

compensation

paid

by

the

Funds

are

included

in

the

financial

statements.

Statement

Regarding

Basis

for

Approval

of

Investment

Advisory

Contracts

(N-CSR

Item

11)

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

During

the

period

covered

by

this

report,

the

Board

of

Directors

of

Principal

Variable

Contracts

Funds,

Inc.

("PVC")

held

the

annual

review

and

renewal

of

the

Management

Agreement

and

various

sub-advisory

agreements

for

all

Funds.

Annual

Review

and

Renewal

of

Management

Agreement

and

Sub-Advisory

Agreements

At

its

September

10,

2025

meeting,

the

members

of

the

Board

of

Directors

of

Principal

Variable

Contracts

Funds,

Inc.

(the

"Board")

performed

its

annual

review

and

renewal

process

relating

to

the

Management

Agreement

and

the

Sub-Advisory

Agreements

for

all

Funds.

Section

15(c)

of

the

Investment

Company

Act

of

1940

(the

"1940

Act")

requires

the

Board,

including

a

majority

of

the

Directors

who

have

no

direct

or

indirect

interest

in

the

investment

advisory

agreements

and

who

are

not

"interested

persons"

of

PVC,

as

defined

in

the

1940

Act

(the

"Independent

Board

Members"),

annually

to

review

and

to

consider

the

continuation

of:

(1) the

Management

Agreement

between

the

PGI

and

PVC,

on

behalf

of

each

of

the

thirty-seven

(37) series

of

PVC

(each

series

is

referred

to

as

a

"Fund")

and

(2) the

Sub-Advisory

Agreements

between

PGI

and

each

of

Brown

Advisory,

LLC;

Principal

Real

Estate

Investors,

LLC;

Spectrum

Asset

Management,

Inc.;

and

T. Rowe

Price

Associates,

Inc.

(collectively,

the

"Sub-Advisors").

The

Management

Agreement

and

the

Sub-Advisory

Agreements

are

collectively

referred

to

as

the

"Advisory

Agreements."

The

Board

considered

the

factors

and

reached

the

conclusions

described

below

relating

to

the

continuation

of

the

Advisory

Agreements.

In

evaluating

the

Advisory

Agreements,

the

Board

reviewed

a

broad

range

of

information

requested

for

this

purpose,

including,

among

other

information,

information

regarding

performance,

advisory

fees,

total

expenses,

profitability

from

the

Advisory

Agreements

to

the

Manager

and

information

about

economies

of

scale.

The

Board

reviewed

the

materials

provided

and

concluded

that

it

was

provided

all

information

reasonably

necessary

to

evaluate

the

Advisory

Agreements.

The

Board

reviewed

comprehensive

materials

provided

by

the

Manager,

the

Sub-Advisors,

Broadridge

Financial

Solutions,

Inc.

("Broadridge")

and

Management

Practice,

LLC,

both

independent

providers

of

investment

company

data,

and

independent

legal

counsel.

The

Board

also

reviewed

performance

information

for

the

Funds

based

upon

data

from

Morningstar

Direct.

In

addition,

the

Board

had

previously

received

extensive

information

throughout

the

year

regarding

the

performance

and

operating

results

of

the

Funds

and

the

various

services

provided

by

the

Manager

and

Sub-Advisors.

Management

Agreement

The

Board

considered,

among

other

factors,

that

the

Manager

and

its

affiliates

have

demonstrated

a

long-term

commitment

to

support

the

Funds,

including

undertakings

to

cap

Fund

expenses

and/or

waive

management

fees

for

certain

Funds.

The

Board

concluded

that

a

relationship

with

a

capable

and

conscientious

investment

advisor

is

in

the

best

interest

of

each

Fund.

In

addition,

the

Board

considered

various

factors,

including

the

following,

and

made

certain

findings

and

conclusions

with

regard

thereto,

in

approving

the

Management

Agreement

for

each

Fund.

Nature,

Quality

and

Extent

of

Services

The

Board

considered

the

nature,

quality

and

extent

of

service

provided

under

the

Management

Agreements,

including

the

accounting

and

administrative

services,

as

applicable.

The

Board

considered

the

experience

and

skills

of

senior

management

leading

Fund

operations,

the

experience

and

skills

of

the

personnel

performing

the

functions

under

the

Management

Agreements

and

the

resources

made

available

to

such

personnel,

the

ability

of

the

Manager

to

attract

and

retain

high-quality

personnel

and

the

organizational

depth

and

stability

of

the

Manager.

The

Board

concluded

that

appropriate

resources

were

provided

under

the

Management

Agreements.

The

Board

also

considered

that

for

certain

Funds,

during

the

periods

reviewed,

the

Manager

had

delegated

day-to-day

portfolio

management

responsibility

to

the

Sub-Advisors.

The

Board

noted

that

the

Manager's

process

for

the

selection

of

sub-advisors

emphasizes

the

selection

of

Principal-affiliated

sub-advisors

that

are

determined

to

be

qualified

under

the

Manager's

due

diligence

process,

but

that

the

Manager

will

select

an

unaffiliated

sub-advisor

to

manage

all

or

a

portion

of

a

Fund's

investment

portfolio

when

deemed

necessary

or

appropriate

based

upon

a

consideration

of

the

Fund's

investment

mandate

and

available

expertise

and

resources

within

the

Principal

organization.

With

respect

to

Funds

with

unaffiliated

Sub-Advisors,

the

Board

considered

the

due

diligence

process

developed

by

the

Manager

for

purposes

of

selecting

a

qualified

unaffiliated

sub-advisor

for

a

Fund.

The

Board

considered

the

Manager's

due

diligence

process

for

monitoring

and

replacing

Sub-Advisors

and

for

monitoring

the

investment

performance

of

the

Manager.

The

Board

also

considered

the

compliance

program

established

by

the

Manager

for

the

Funds,

the

quality

of

that

program

and

the

level

of

compliance

attained

by

the

Funds.

The

Board

noted

that

they

had

previously

reviewed

annual

best

execution

and

soft

dollar

reports

and

included

this

information

in

their

consideration

of

the

renewal

of

the

Advisory

Agreements.

Based

upon

all

relevant

factors,

the

Board

concluded

that

the

nature,

quality

and

extent

of

the

services

provided

by

the

Manager

to

the

Funds

under

each

Management

Agreement

were

satisfactory.

Investment

Performance

The

Board

reviewed

each

Fund's

investment

performance

over

longer-term

periods,

reviewing

both

the

investment

return

during

the

three-year

period

ended

March

31,

2025

and

the

blended

investment

return

(50%/50%)

of

the

three-

and

five-year

periods

ended

March

31,

2025,

and

compared

those

returns

to

various

agreed-upon

performance

measures,

including,

for

all

Funds,

peer-group

data

based

upon

a

broad-based

industry

category

determined

using

Morningstar

Direct

data

("Performance

Universe").

For

Funds

or

Sub-Advisors

that

did

not

have

a

five-year

performance

history,

the

Board

reviewed

the

performance

information

for

a

three-year

period

ended

March

31,

2025,

if

available.

For

Funds

or

Sub-Advisors

that

did

not

have

a

three-year

performance

history,

the

Board

reviewed

performance

information

for

a

one-year

period

ended

March

31,

2025,

if

available.

The

Board

also

compared

each

Fund's

investment

performance

over

the

one-,

three-

and

five-year

periods

ended

March

31,

2025,

as

available,

to

one

or

more

relevant

benchmark

indices.

The

Board

also

considered

whether

investment

results

were

consistent

with

a

Fund's

investment

objective(s)

and

policies.

For

most

Funds,

the

Board

concluded

Statement

Regarding

Basis

for

Approval

of

Investment

Advisory

Contracts

(N-CSR

Item

11)

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

that

the

Fund's

investment

returns

met

acceptable

levels

of

investment

performance.

There

were

certain

Funds,

and

certain

Sub-Advisors

or

affiliated

portfolio

management

teams

for

multi-manager

Funds,

that

had

not

attained,

during

the

relevant

period(s),

a

level

of

investment

performance

considered

satisfactory

by

the

Board.

For

such

Funds,

the

Board

also

considered

other

factors,

such

as

the

longer-term

performance

of

each

such

Fund,

Sub-Advisor

or

portfolio

management

team,

remedial

efforts

being

undertaken

to

improve

performance

and/or

the

Manager's

explanation

for

the

performance

of

such

Fund,

Sub-Advisor

or

portfolio

management

team.

The

Board

considered

the

Manager's

due

diligence

process

for

evaluating

the

performance

of

all

Funds,

all

Sub-Advisors

and

all

affiliated

portfolio

management

teams,

for

which

they

receive

regular

reporting,

and

concluded

that

the

Manager

has

in

place

an

effective

due

diligence

process

to

monitor

investment

performance,

to

encourage

remedial

action

and

to

make

changes

in

the

Sub-Advisors

or

affiliated

portfolio

management

teams

at

the

appropriate

time,

if

necessary,

subject

to

Board

oversight.

Fees

and

Expenses

The

Board

considered

each

Fund's

contractual

and

effective

management

fee

rates.

For

each

Fund,

other

than

as

noted

below,

the

Board

received

certain

information

from

Broadridge.

The

Board

received

information

comparing

each

Fund's

(1) contractual

management

fee

rate

at

current

asset

levels

and

at

theoretical

asset

levels,

(2) effective

net

management

fee

rate

(after

any

fee

waivers)

at

average

fiscal-year

asset

levels,

(3) actual

non-management

expense

rate

at

average

fiscal-

year

asset

levels

and

(4) total

net

expense

ratio

(including,

as

applicable,

acquired

fund

fees

and

expenses

and

after

any

expense

caps

or

fee

waivers)

at

average

fiscal-year

asset

levels

for

Class

shares

for

each

Fund,

as

described

below;

to

investment

advisory

fee

rates,

non-management

expense

rates

and

expense

ratios

of

funds

in

a

peer

group

selected

by

Broadridge

("Expense

Group")

and

a

broad-based

industry

category

defined

by

Broadridge

("Expense

Universe").

For

Funds

that

do

not

offer

Class

shares

or

for

which

Class

shares

represented

less

than

5%

of

the

Fund's

total

assets,

comparative

fee

and

expense

information

was

provided

based

upon

Class

shares.

In

evaluating

the

contractual

and

effective

management

fee

rates,

the

Board

considered

a

variety

of

factors,

including

the

contractual

and

effective

fee

rates,

breakpoints,

comparisons

to

fee

rates

of

peer

group

funds

and

other

funds

and

non-fund

accounts

managed

by

the

Manager,

sub-advisory

fee

rates

paid,

services

provided,

investment

performance,

total

net

expense

ratios,

profitability,

the

existence

and

sharing

of

economies

of

scale,

indirect

benefits,

and

expense

caps

and

fee

waivers.

The

Board

considered

the

impact

of

changes

in

sub-advisory

fee

rates

put

into

effect

since

September

2024. The

Board

considered

that

certain

Funds

with

similar

investment

strategies

and

policies

have

different

management

fee

schedules

and

noted

the

reasons

cited

by

the

Manager

for

the

differing

fee

rates.

In

reviewing

the

fee

rates

of

other

accounts

managed

by

the

Manager,

the

Board

considered

information

provided

by

the

Manager

regarding

differences

between

the

services

provided

to

and

the

risks

involved

in

sponsoring

the

Funds

and

the

services

provided

to

and

the

risks

involved

in

sponsoring

such

other

accounts.

For

most

Funds,

effective

net

management

fee

rates

were

within

the

third

quartile

or

better

when

compared

to

the

applicable

Expense

Group.

For

some

Funds,

although

effective

net

management

fee

rates

were

higher

than

the

third

quartile,

total

net

expense

ratios

were

within

the

third

quartile

or

better.

In

both

such

cases,

these

factors

supported

a

conclusion

that

the

Management

Agreement

should

be

renewed.

Discussion

is

set

forth

below

regarding

specific

factors

relevant

to

the

Board's

review

of

certain

other

Funds.

With

respect

to

the

PVC

Principal

LifeTime

Accounts,

the

Board

noted

that

the

Funds

do

not

pay

Fund-level

management

fees

and

reviewed

the

actual

non-

management

expenses

of

the

Funds.

The

Board

reviewed

the

total

net

expense

ratios

of

the

Funds,

including

acquired

fund

fees

and

expenses.

In

concluding

that

the

Management

Agreement

for

the

PVC

Principal

LifeTime

Accounts

should

be

renewed,

the

Board

considered

all

relevant

factors,

including

that

the

Manager

has

agreed

to

extend

the

expense

cap

on

each

Fund's

non-management

expenses

through

February

28,

2027

and

management's

explanation

that

the

total

net

expense

ratio

of

each

Fund

should

decline

as

assets

increase

and

non-management

fee

expenses

decline.

The

Board

also

considered

each

Fund's

performance.

With

regard

to

PVC

LargeCap

S&P

500

Managed

Volatility

Index

Account,

the

Board

noted

that

the

effective

net

management

fee

rate

and

the

total

net

expense

ratio

on

the

basis

of

Class

shares

were

higher

than

the

third

quartile

(both

were

at

the

83rd

percentile)

in

the

Expense

Group.

Considering

all

relevant

factors,

including

that

the

Fund's

performance

was

in

the

second

quartile

(47th

percentile)

in

the

Performance

Universe

for

the

three-year

period

ended

March

31,

2025

and

in

the

third

quartile

(57th

percentile)

in

the

Performance

Universe

for

the

blended

three-

and

five-year

period

ended

March

31,

2025,

and

management's

explanation

that

100%

of

the

Fund's

assets

are

owned

by

PVC

Diversified

Accounts

with

total

net

expense

ratios

in

the

first

quartile

of

their

respective

Expense

Groups,

the

Board

concluded

that

the

Management

Agreement

should

be

renewed.

The

Board

also

considered

the

expense

caps

and

fee

waivers

that

would

be

in

place

with

respect

to

certain

Funds

and

share

classes.

Considering

all

factors

they

deemed

relevant,

the

Board

concluded

that

the

management

fee

payable

by

each

Fund

was

reasonable

in

light

of

the

nature,

quality

and

extent

of

services

provided

by

the

Manager

and

other

relevant

factors.

Profitability

The

Board

reviewed

detailed

information

regarding

revenues

the

Manager

received

under

the

Management

Agreements

and

the

estimated

direct

and

indirect

costs

incurred

in

providing

to

each

Fund

the

services

described

in

the

applicable

Management

Agreements

for

the

year

ended

December

31,

2024. The

Board

also

considered

the

returns

on

revenue

generated

in

connection

with

the

payment

of

sub-advisory

fees

to

affiliated

Sub-Advisors

(Principal

Real

Estate

Investors

LLC

and

Spectrum

Asset

Management,

Inc.)

and

the

aggregated

return

on

revenue

to

the

Manager

and

its

affiliates

for

the

year

ended

December

31,

2024. The

Board

noted

that

the

Manager

compensates

each

Sub-Advisor

from

its

own

management

fee

and

considered

the

pro

forma

impact

on

the

Manager's

returns

on

revenue

from

the

reductions

of

certain

Funds'

effective

management

fee

rates

described

above.

The

Board

concluded

that,

for

each

Fund,

the

profitability

to

the

Manager

of

the

Management

Agreement

was

not

unreasonable.

Economies

of

Scale

Statement

Regarding

Basis

for

Approval

of

Investment

Advisory

Contracts

(N-CSR

Item

11)

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

The

Board

considered

whether

there

are

economies

of

scale

with

respect

to

the

management

of

each

Fund

and

whether

the

Funds

benefit

from

any

such

economies

of

scale.

The

Board

considered

the

Manager's

biennial

breakpoint

analysis

that

was

received

by

the

Board

in

March

2024

and

the

Manager's

representation

that

Funds

are

initially

priced

as

though

the

Fund

had

reached

scale,

reflecting

a

sharing

of

economies

of

scale.

The

Board

then

reviewed

the

levels

at

which

breakpoints

occur,

the

incremental

declines

in

management

fee

rates

at

each

breakpoint

and

the

amount

of

fee

reductions

that

had

been

provided

to

shareholders

as

a

result

of

these

breakpoints.

The

Board

considered

cost

savings

passed

along

to

the

Funds

as

a

result

of

certain

expense

caps

and

fee

waivers.

The

Board

also

considered

whether

the

effective

management

fee

rate

for

each

Fund

under

the

applicable

Management

Agreement

is

reasonable

in

relation

to

the

asset

size

of

such

Fund.

The

Board

noted

management's

explanation

of

efficiencies

in

the

Manager's

cost

structure.

The

Board

concluded

that

the

fee

schedule

for

each

Fund,

taking

into

account

the

proposed

amendments

described

above,

reflects

an

appropriate

level

of

sharing

of

any

economies

of

scale.

The

Board

noted

that

the

PVC

Principal

LifeTime

Accounts

do

not

directly

pay

management

fees,

although

shareholders

bear

a

portion

of

the

cost

of

the

management

fees

at

the

underlying

fund

level

as

reflected

in

the

acquired

fund

fees

and

expenses.

The

Board

also

noted

that

the

management

fee

schedules

for

the

PVC

Diversified

Balanced

Account,

PVC

Diversified

Balanced

Adaptive

Allocation

Account,

PVC

Diversified

Balanced

Strategic

Allocation

Account,

PVC

Diversified

Growth

Adaptive

Allocation

Account,

PVC

Diversified

Growth

Strategic

Allocation

Account

and

PVC

Diversified

Income

Account

do

not

include

breakpoints,

but

that

each

such

Fund

has

a

relatively

low

management

fee

rate

(25

basis

points

or

less)

on

all

Fund

assets.

Considering

all

relevant

factors,

including

each

such

Fund's

fee

rate

and

current

asset

level,

the

Board

determined

that

no

breakpoints

were

necessary

at

this

time.

The

Board

further

determined

that

no

breakpoints

were

necessary

at

this

time

for

the

unitary

management

fee

schedules

of

PVC

LargeCap

S&P

500

Managed

Volatility

Index

Account,

PVC

U.S.

LargeCap

S&P

500

Index

Buffer

January

Account,

PVC

U.S.

LargeCap

S&P

500

Index

Buffer

April

Account,

PVC

U.S.

LargeCap

S&P

500

Index

Buffer

July

Account

and

PVC

U.S.

LargeCap

S&P

500

Index

Buffer

October

Account

due

to,

among

other

factors,

their

current

asset

levels

and,

with

respect

to

the

PVC

U.S.

LargeCap

Buffer

Accounts,

taking

into

account

historical

levels

of

profitability

to

the

Manager.

Other

Benefits

to

Manager

The

Board

also

considered

the

character

and

amount

of

other

indirect

benefits

received

by

the

Manager

and

its

affiliates

from

their

relationships

with

the

Funds.

The

Board

noted

that

the

Manager

uses

Fund

commissions

to

buy

Section

28(e)-eligible

products

and

services.

The

Board

concluded

that

the

incidental

benefits

received

by

the

Manager

and

its

affiliates

were

appropriate.

Special

Circumstances

For

certain

Funds,

in

reaching

the

conclusion

that

the

Management

Agreement

should

be

renewed,

the

Board

included

within

their

considerations

certain

other

actions

taken

by

the

Board.

Sub-Advisory

Agreements

Nature,

Quality

and

Extent

of

Services

The

Board

considered

the

nature,

quality

and

extent

of

the

services

provided

under

each

Sub-Advisory

Agreement.

For

each

Sub-Advisory

Agreement,

the

Board

considered

the

reputation,

qualifications

and

background

of

the

Sub-Advisor,

the

investment

approach

of

the

Sub-Advisor,

the

experience

and

skills

of

investment

personnel

responsible

for

the

day-to-day

management

of

each

Fund

and

the

resources

made

available

to

such

personnel.

The

Board

also

considered

each

Sub-

Advisor's

compliance

with

investment

policies

and

general

legal

compliance.

Based

upon

all

relevant

factors,

the

Board

concluded

that

the

nature,

quality

and

extent

of

the

services

provided

by

the

Sub-Advisors

to

the

sub-advised

Funds

under

the

Sub-Advisory

Agreements

were

satisfactory.

Investment

Performance

As

to

each

sub-advised

Fund,

the

Manager

recommended

the

renewal

of

each

Sub-Advisory

Agreement.

Based

upon

all

relevant

factors,

the

Board

concluded

that

each

Sub-Advisor

is

qualified

and

that

either:

(1) the

investment

performance

of

the

Sub-Advisor

met

acceptable

levels

of

investment

performance;

or

(2) although

the

Fund

experienced

underperformance

from

the

applicable

Sub-Advisor,

based

upon

that

Fund's

particular

circumstances

or

in

light

of

remedial

efforts

being

undertaken

to

improve

performance,

as

applicable,

it

was

in

the

best

interests

of

the

Fund

to

continue

to

closely

monitor

performance

and

to

renew

the

Sub-Advisory

Agreement.

In

each

case

involving

underperformance,

the

Board

concluded

that

the

Manager

was

providing

effective

monitoring.

Fees,

Economies

of

Scale

and

Profitability

For

each

sub-advised

Fund,

the

Board

considered

the

sub-advisory

fee

rate(s),

noting

that

the

Manager

compensates

each

Sub-Advisor

from

its

own

management

fee,

so

that

shareholders

pay

only

the

management

fee.

For

each

sub-advised

Fund,

other

than

as

noted

below,

the

Board

received

certain

information

from

Broadridge

comparing

each

such

Fund's

sub-advisory

fee

rate(s)

at

current

asset

levels

and

at

theoretical

asset

levels

to

sub-advisory

fee

rates

of

sub-advised

funds

in

the

Broadridge

classification.

The

Board

considered

whether

there

are

economies

of

scale

with

respect

to

the

sub-advisory

services

provided

to

each

sub-advised

Fund

and,

if

so,

whether

the

sub-advisory

fees

reflect

such

economies

of

scale

through

breakpoints

in

fee

schedules

or

whether

the

sub-advisory

fee

schedule

is

otherwise

appropriate

at

current

asset

levels.

In

addition,

in

evaluating

the

sub-advisory

fee

rates

and

the

factor

of

profitability,

with

respect

to

unaffiliated

Sub-Advisors,

the

Board

considered

that

the

sub-advisory

fee

rate

was

negotiated

at

arm's

length

between

the

Manager

and

the

Sub-Advisor.

The

Board

considered

the

profitability

of

the

affiliated

Sub-Advisors

in

conjunction

with

their

review

of

the

profitability

of

the

Manager.

Other

Benefits

to

Sub-Advisers

Statement

Regarding

Basis

for

Approval

of

Investment

Advisory

Contracts

(N-CSR

Item

11)

Principal

Variable

Contracts

Funds,

Inc.

December

31,

2025

The

Board

also

considered

the

character

and

amount

of

other

indirect

benefits

received

by

each

Sub-Advisor

when

evaluating

the

sub-advisory

fees.

The

Board

considered

as

a

part

of

this

analysis

each

Sub-Advisor's

brokerage

practices,

soft

dollar

practices

and

use

of

research

payment

accounts.

The

Board

concluded

that

the

indirect

benefits

received

by

each

Sub-Advisor

were

appropriate.

Overall

Conclusions

Based

upon

all

of

the

information

considered

and

the

conclusions

reached,

the

Board

determined

that

the

terms

of

each

Advisory

Agreement,

including

the

fee

rate

payable

thereunder,

continue

to

be

fair

and

reasonable

and

that

the

continuation

of

each

Advisory

Agreement,

with

the

actions

proposed

by

the

Manager,

is

in

the

best

interests

of

each

Fund.

Principal.com

This

report

must

be

preceded

or

accompanied

by

a

current

prospectus

for

the

Principal

Variable

Contracts

Funds,

Inc.

Principal

Variable

Contracts

Funds,

Inc.,

are

distributed

by

Principal

Funds

Distributor,

Inc.

Principal®

,

Principal

Financial

Group®

,

and

Principal

and

the

logomark

design

are

registered

trademarks

of

Principal

Financial

Services,

Inc.,

a

Principal

Financial

Group

company,

in

the

United

States

and

are

trademarks

and

services

marks

of

Principal

Financial

Services,

Inc.,

in

various

countries

around

the

world.©

2025

Principal

Financial

Services,

Inc.

\|

MM1290-32

\|

12/2025

\|

4065839

ITEM 8 – CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS FOR OPEN-END MANAGEMENT INVESTMENT COMPANIES

There were no changes or disagreements with Accountants. Changes in and disagreements with Accountants would be included as part of the Financial Statements filed under Item 7 of this form.

**ITEM 9 – PROXY DISCLOSURES FOR OPEN-END MANAGEMENT COMPANIES**

Proxy Disclosures are included as part of the Financial Statements filed under Item 7 of this form.

**ITEM 10 – REMUNERATION PAID TO DIRECTORS, OFFICERS, AND OTHERS OF OPEN-END MANAGEMENT INVESTMENT COMPANIES**

Remuneration paid to Directors, Officers, and Others of Open-End Management Investment Companies is included as part of the Financial Statements filed under Item 7 of this form.

**ITEM 11 – STATEMENT REGARDING BASIS FOR APPROVAL OF INVESTMENT ADVISORY CONTRACT**

Statement Regarding Basis for Approval of Investment Advisory Contracts is included as part of the Financial Statements filed under Item 7 of this form.

ITEM 12 – DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 13 – PORTFOLIO MANAGERS OF CLOSED-END MANAGEMENT INVESTMENT COMPANIES

Not applicable.

ITEM 14 – PURCHASES OF EQUITY SECURITIES BY CLOSED-END MANAGEMENT INVESTMENT COMPANY AND AFFILIATED PURCHASERS

Not applicable.

#### ITEM 15 – SUBMISSION OF MATTERS TO A VOTE OF SECURITY HOLDERS
None.

#### ITEM 16 – CONTROLS AND PROCEDURES
(a) The registrant's principal executive officer and principal financial officer have concluded that the registrant's disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940, as amended) are effective (such disclosure controls and procedures having been evaluated within 90 days of the date of this filing).

(b) There have been no changes in the registrant's internal controls over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the period covered by this report that have materially affected, or are reasonably likely to materially affect, the registrant's internal control over financial reporting.

#### ITEM 17 – DISCLOSURE OF SECURITIES LENDING ACTIVITIES FOR CLOSED-END MANAGEMENT INVESTMENT COMPANIES
Not applicable.

#### ITEM 18 – RECOVERY OF ERRONEOUSLY AWARDED COMPENSATION
(a) Not applicable.

(b) Not applicable.

**ITEM 19 – EXHIBITS**

(a)(1) Code of Ethics required to be disclosed under Item 2 of Form N-CSR attached hereto as Exhibit [99. CODE ETH](code.htm).

(a)(2) Certifications pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(a) under the Investment Company Act of 1940 are attached hereto as [Exhibit 99.CERT](cert99.htm).

(b) Certification pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 and Rule 30a-2(b) under the Investment Company Act of 1940 is attached hereto as [Exhibit 99.906CERT](cert906.htm).

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(Registrant) Principal
 Variable Contracts Funds, Inc.

---

| | |
|:---|:---|
| &nbsp;&nbsp; By | &nbsp;&nbsp; /s/ Kamal Bhatia |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kamal Bhatia, Director, President, and Chief Executive Officer (Principal Executive Officer)

Date <u> 2/12/2026 </u>

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the registrant and in the capacities and on the dates indicated.

---

| | |
|:---|:---|
| &nbsp;&nbsp; By | &nbsp;&nbsp; /s/ Kamal Bhatia |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kamal Bhatia, Director, President, and Chief Executive Officer (Principal Executive Officer)

Date <u> 2/12/2026 </u>

---

| | |
|:---|:---|
| &nbsp;&nbsp; By  | &nbsp;&nbsp; /s/ Michael Scholten |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Michael Scholten, Chief Financial Officer (Principal Financial Officer)

Date <u> 2/12/2026 </u>

## Ex-99

# Exhibit 99.CERT

# CERTIFICATIONS
I, Kamal Bhatia, certify that:

1. I have reviewed this report on Form N-CSR of Principal Variable Contracts Funds, Inc.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: <u> 2/12/2026 </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

/s/ Kamal Bhatia&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Kamal Bhatia, Director, President, and Chief Executive Officer (Principal Executive Officer)

**Exhibit 99.CERT**

**CERTIFICATIONS**

I, Michael Scholten, certify that:

1. I have reviewed this report on Form N-CSR of Principal Variable Contracts Funds, Inc.

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report, based on such evaluation; and

(d) Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officer(s) and I have disclosed to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize, and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: <u> 2/12/2026 </u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

/s/ Michael Scholten

Michael Scholten, Chief Financial Officer (Principal Financial Officer)

## Exhibit 99.906

**Exhibit 99.906CERT**

**Certification Pursuant to Section 1350 of Chapter 63 of Title 18 of the United States Code As Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002**

In connection with the Certified Shareholder Report of

Principal Variable Contracts Funds, Inc.

(the "Registrant") on Form N-CSR (the "Report"), each of the undersigned officers of the Registrant does hereby certify that, to the best of their knowledge:

1) the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934;

2) the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

---

| | |
|:---|:---|
| &nbsp;&nbsp; By | &nbsp;&nbsp; /s/ Kamal Bhatia |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Kamal Bhatia, Director, President, and Chief Executive Officer (Principal Executive Officer)

Date <u> 2/12/2026 </u>

---

| | |
|:---|:---|
| &nbsp;&nbsp; By  | &nbsp;&nbsp; /s/ Michael Scholten |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Michael Scholten, Chief Financial Officer (Principal Financial Officer)

Date <u> 2/12/2026 </u>

This certification is being furnished to the Commission solely pursuant to 18 U.S.C. Section 1350 and is not being filed as part of the Form N-CSR filed with the Commission.

## Ex-99.Code

**Exhibit 99.CODE ETH**

CODE OF ETHICS FOR PRINCIPAL EXECUTIVE AND

**SENIOR FINANCIAL OFFICERS OF PRINCIPAL**

**FUNDS**

Revised on September 10, 2024

I.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Covered Officers/Purpose of the Code

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Principal Funds code of ethics (this "Code") for the registered investment companies within the Principal Funds complex[\[1\]](#_ftn1)

(collectively "Funds" and each, "Company") applies to each Company's Principal Executive Officer, Principal Financial Officer and Controller (the "Covered Officers" each of whom is set forth in Exhibit A) for the purpose of promoting:

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

honest and ethical conduct, including the ethical handling of actual or apparent conflicts of interest between personal and professional relationships;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

full, fair, accurate, timely, and understandable disclosure in reports and documents that a registrant files with, or submits to, the Securities and Exchange Commission ("SEC") and in other public communications made by the Company.

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

compliance with applicable laws and governmental rules and regulations;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

the prompt internal reporting of violations of the Code to an appropriate person or persons identified in the Code; and

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

accountability for adherence to the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Covered Officer should adhere to a high standard of business ethics and should be sensitive to situations that may give rise to actual as well as apparent conflicts of interest.

II.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Covered Officers Should Handle Ethically Actual and Apparent Conflicts of Interest

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; **Overview.** A "conflict of interest" occurs when a Covered Officer's private interest interferes with the interests of, or his service to, the Company. For example, a conflict of interest would arise if a Covered Officer, or a member of his family, receives improper personal benefits as a result of his position with the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Certain conflicts of interest arise out of the relationships between Covered Officers and the Company and already are subject to conflict of interest provisions in the Investment Company Act of 1940 ("Investment Company Act") and the Investment Advisers Act of 1940 ("Investment Advisers Act"). For example, Covered Officers may not individually engage in certain transactions (such as the purchase or sale of securities or other property) with the Company because of their status as "affiliated persons" of the Company. The Company's and

Principal Global Investors, LLC's (the "Investment Adviser") compliance programs and procedures are designed to prevent, or identify and correct, violations of these provisions. This Code does not, and is not intended to, repeat or replace these programs and procedures, and such conflicts fall outside of the parameters of this Code.

Although typically not presenting an opportunity for improper personal benefit, conflicts arise from, or as a result of, the contractual relationship between the Company and the Investment Adviser of which the Covered Officers may also be directors/trustees, officers or employees. As a result, this Code recognizes that the Covered Officers will, in the normal course of their duties (whether formally for the Company or for the Investment Adviser, or for both), be involved in establishing policies and implementing decisions that will have different effects on the Investment Adviser and the Company. The participation of the Covered Officers in such activities is inherent in the contractual relationship between the Company and the Investment Adviser and is consistent with the performance by the Covered Officers of their duties as officers of the Company. Thus, if performed in conformity with the provisions of the Investment Company Act and the Investment Advisers Act, such activities will be deemed to have been handled ethically. In addition, the Funds' Boards of Directors/Trustees ("Boards") recognize that the Covered Officers may also be officers or employees of one or more other investment companies covered by this or other codes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Code covers other conflicts of interest, even if such conflicts of interest are not subject to provisions in the Investment Company Act and the Investment Advisers Act. The following list provides examples of conflicts of interest under the Code, but Covered Officers should keep in mind that these examples are not exhaustive. The overarching principle is that the personal interest of a Covered Officer should not be placed improperly before the interest of the Company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Covered Officer must:

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

not use his personal influence or personal relationships improperly to influence investment decisions or financial reporting by the Company whereby the Covered Officer would benefit personally to the detriment of the Company;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

not cause the Company to take action, or fail to take action, for the individual personal benefit of the Covered Officer rather than the benefit the Company;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

not retaliate against any other Covered Officer or any employee of the Funds or their affiliated persons for reports of potential violations that are made in good faith.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; There are some conflicts of interest it is advisable for Covered Officers to discuss in advance with Counsel for the Funds, if material. Examples of these include:

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

service as a director on the board of any public or private company;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

any ownership interest in, or any consulting or employment relationship with, any of the Company's service providers, other than its principal underwriter, administrator, the Investment Adviser or any affiliated person thereof;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

a direct or indirect financial interest in commissions, transaction charges or spreads paid by the Company for effecting portfolio transactions or for selling or redeeming shares other than an interest arising from the Covered Officer's employment such as compensation or equity ownership.

III.&nbsp;&nbsp;&nbsp;&nbsp; Disclosure and Compliance

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

each Covered Officer should be familiar with the disclosure requirements generally applicable to the Company;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

each Covered Officer should not knowingly misrepresent, or cause others to misrepresent, facts about the Company to others, whether within or outside the Company, including to the Company's directors/trustees and auditors, and to governmental regulators and self-regulatory organizations;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

each Covered Officer should, to the extent appropriate within his or her area of responsibility, consult with other officers and employees of the Funds and the Investment Adviser with the goal of promoting full, fair, accurate, timely and understandable disclosure in the reports and documents the Funds file with, or submit to, the SEC and in other public communications made by the Funds; and

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

it is the responsibility of each Covered Officer to promote compliance with the standards and restrictions imposed by applicable laws, rules and regulations.

IV.&nbsp;&nbsp;&nbsp;&nbsp; Reporting and Accountability

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Each Covered Officer must:

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

upon adoption of the Code (or thereafter as applicable, upon becoming a Covered Officer), affirm in writing to the Board that he has received, read, and understands the Code;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

annually thereafter affirm to the Board that he or she has complied with the requirements of the Code; and

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

notify Counsel to the Funds promptly if he or she knows of any violation of this Code. Failure to do so is itself a violation of this Code.

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

report at least annually possible conflicts of interest by completing the Principal Funds Director and Officer Questionnaire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Counsel to the Funds is responsible for applying this Code to specific situations in which questions are presented under it and has the authority to interpret this Code in any particular situation. However, any approvals or waivers sought by the Covered Officers will be considered by the Audit Committee (the "Committee").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Funds will follow these procedures in investigating and enforcing this Code:

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

Counsel to the Funds will take all appropriate action to investigate any potential violations reported to Counsel;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

if, after such investigation, Counsel to the Funds believes that no violation has occurred, Counsel is not required to take any further action;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

any matter that Counsel believes is a violation will be reported to the Committee;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

if the Committee concurs that a violation has occurred, it will take appropriate action, which may include review of, and appropriate modifications to, applicable policies and procedures; notification to appropriate personnel of the Investment Adviser or its board; or a recommendation to dismiss the Covered Officer;

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

the Committee will be responsible for granting waivers, as appropriate; and

· &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

any changes to or waivers of this Code will, to the extent required, be disclosed as provided by SEC rules.

V.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Other Policies and Procedures

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; This Code shall be the sole code of ethics adopted by the Funds for purposes of Section 406 of the Sarbanes-Oxley Act and the rules and forms applicable to registered investment companies thereunder. Insofar as other policies or procedures of the Funds, the Funds' Investment Adviser, principal underwriter, or other service providers govern or purport to govern the behavior or activities of the Covered Officers who are subject to this Code, they are superseded by this Code to the extent that they overlap or conflict with the provisions of this Code. The Funds' and their Investment Adviser's and principal underwriter's codes of ethics under Rule 17j-1 under the Investment Company Act are separate requirements applying to the Covered Officers and others, and are not part of this Code.

VI.&nbsp;&nbsp;&nbsp;&nbsp; Amendments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; Any amendments to this Code, other than amendments to Exhibit A, must be approved or ratified by a majority vote of the Committee.

VII.&nbsp;&nbsp;&nbsp;&nbsp; Confidentiality

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; All reports and records prepared or maintained pursuant to this Code will be considered confidential and shall be maintained and protected accordingly. Except as otherwise required by law or this Code, such matters shall not be disclosed to anyone other than the Committee, Board, Counsel to the Funds and officers of the Investment Adviser.

VIII.&nbsp;&nbsp;&nbsp;&nbsp; Internal Use

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; The Code is intended solely for the internal use by the Funds and does not constitute an admission, by or on behalf of any Company, as to any fact, circumstance, or legal conclusion.

**Exhibit A**

# Persons Covered by this Code of Ethics
Principal Executive Officer:...... Kamal Bhatia, President and Chief Executive Officer

Principal Financial Officer:....... Michael Scholten, Chief Financial Officer

Controller:................................. Megan Hoffmann, Vice President and Treasurer

------

[\[1\]](#_ftnref1)

Principal Funds, Inc., Principal Variable Contracts Funds, Inc., and Principal Exchange-Traded Funds.