# EDGAR Filing Document

**Accession Number:** 0000898745
**File Stem:** 0000898745-26-000202
**Filing Date:** 2026-2
**Character Count:** 4164376
**Document Hash:** b5120b7bc010d926c6be515db9d50217
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000898745-26-000202.hdr.sgml**: 20260227

**ACCESSION NUMBER**: 0000898745-26-000202

**CONFORMED SUBMISSION TYPE**: 485BPOS

**PUBLIC DOCUMENT COUNT**: 233

**FILED AS OF DATE**: 20260227

**DATE AS OF CHANGE**: 20260227

**EFFECTIVENESS DATE**: 20260301

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PRINCIPAL FUNDS, INC.
- **CENTRAL INDEX KEY:** 0000898745

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1031

**FILING VALUES:**
- **FORM TYPE:** 485BPOS
- **SEC ACT:** 1940 Act
- **SEC FILE NUMBER:** 811-07572
- **FILM NUMBER:** 26697438

**BUSINESS ADDRESS:**
- **STREET 1:** 711 HIGH STREET
- **CITY:** DES MOINES
- **STATE:** IA
- **ZIP:** 50392
- **BUSINESS PHONE:** 515-235-9328

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

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PRINCIPAL FUNDS, INC
- **DATE OF NAME CHANGE:** 20211220

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PRINCIPAL FUNDS INC
- **DATE OF NAME CHANGE:** 20080616

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PRINCIPAL INVESTORS FUND INC
- **DATE OF NAME CHANGE:** 20001012
**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** PRINCIPAL FUNDS, INC.
- **CENTRAL INDEX KEY:** 0000898745

**ORGANIZATION NAME:**
- **EIN:** 000000000
- **STATE OF INCORPORATION:** MD
- **FISCAL YEAR END:** 1031

**FILING VALUES:**
- **FORM TYPE:** 485BPOS
- **SEC ACT:** 1933 Act
- **SEC FILE NUMBER:** 033-59474
- **FILM NUMBER:** 26697437

**BUSINESS ADDRESS:**
- **STREET 1:** 711 HIGH STREET
- **CITY:** DES MOINES
- **STATE:** IA
- **ZIP:** 50392
- **BUSINESS PHONE:** 515-235-9328

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

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PRINCIPAL FUNDS, INC
- **DATE OF NAME CHANGE:** 20211220

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PRINCIPAL FUNDS INC
- **DATE OF NAME CHANGE:** 20080616

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** PRINCIPAL INVESTORS FUND INC
- **DATE OF NAME CHANGE:** 20001012

## Series and Classes Contracts Data

### Core Plus Bond Fund fka Bond & Mortgage Securities Fund (Series ID: S000006952)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000018958 | R-3                 | PBMMX           |
| C000018959 | R-5                 | PBMPX           |
| C000018961 | Institutional Class | PMSIX           |
| C000018962 | J Class             | PBMJX           |
| C000018963 | A Class             | PRBDX           |

### Diversified International Fund (Series ID: S000006992)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000019054 | R-3                 | PINRX           |
| C000019055 | R-5                 | PINPX           |
| C000019057 | Institutional Class | PIIIX           |
| C000019058 | Class J             | PIIJX           |
| C000019059 | Class A             | PRWLX           |
| C000210673 | Class R-6           | PDIFX           |

### Inflation Protection Fund (Series ID: S000006997)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000019081 | R-3                 | PIFPX           |
| C000019082 | R-5                 | PBPPX           |
| C000019085 | Class J             | PIPJX           |
| C000019086 | Institutional Class | PIPIX           |

### Global Emerging Markets Fund (f/k/a International Emerging Markets Fund) (Series ID: S000007013)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000019140 | R-3                 | PEAPX           |
| C000019142 | R-5                 | PEPSX           |
| C000019144 | Institutional Class | PIEIX           |
| C000019145 | Class J             | PIEJX           |
| C000019146 | Class A             | PRIAX           |
| C000175481 | R-6                 | PIIMX           |

### LargeCap S&P 500 Index Fund (Series ID: S000007016)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000019169 | R-3                 | PLFMX           |
| C000019170 | R-5                 | PLFPX           |
| C000019172 | Institutional Class | PLFIX           |
| C000019173 | Class J             | PSPJX           |
| C000019174 | Class A             | PLSAX           |

### MidCap Fund (f/k/a MidCap Blend Fund) (Series ID: S000007075)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000019312 | R-3                 | PMBMX           |
| C000019313 | R-5                 | PMBPX           |
| C000019315 | Institutional Class | PCBIX           |
| C000019316 | Class J             | PMBJX           |
| C000019317 | Class A             | PEMGX           |
| C000038781 | Class C             | PMBCX           |
| C000175482 | R-6                 | PMAQX           |

### LargeCap Growth Fund I (Series ID: S000007077)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000019328 | R-3                 | PPUMX           |
| C000019329 | R-5                 | PPUPX           |
| C000019331 | Institutional Class | PLGIX           |
| C000019332 | Class J             | PLGJX           |
| C000019333 | Class A             | PLGAX           |
| C000149257 | R-6                 | PLCGX           |

### MidCap S&P 400 Index Fund (Series ID: S000007079)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000019343 | Institutional Class | MPSIX           |
| C000019345 | R-3                 | PMFMX           |
| C000019346 | R-5                 | PMFPX           |
| C000019348 | Class J             | PMFJX           |
| C000175483 | R-6                 | PMAPX           |

### Money Market Fund (Series ID: S000007081)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000019362 | Class J      | PMJXX           |
| C000019363 | Class A      | PCSXX           |

### International Equity Fund (formerly, International Fund I) (Series ID: S000007083)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000019372 | R-3                 | PRPPX           |
| C000019373 | R-5                 | PTPPX           |
| C000019376 | Institutional Class | PINIX           |
| C000175484 | R-6                 | PIIDX           |

### LargeCap Value Fund III (Series ID: S000007122)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000019460 | R-3                 | PPSFX           |
| C000019461 | R-5                 | PPSRX           |
| C000019463 | Institutional Class | PLVIX           |
| C000019464 | Class J             | PLVJX           |

### SmallCap Value Fund II (Series ID: S000007169)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000019585 | R-3                 | PJARX           |
| C000019586 | R-5                 | PLARX           |
| C000019589 | Institutional Class | PPVIX           |
| C000076717 | Class J             | PSMJX           |
| C000149259 | R-6                 | PSMVX           |

### MidCap Value Fund I (Series ID: S000007173)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000019614 | R-3                 | PMPRX           |
| C000019615 | R-5                 | PABVX           |
| C000019618 | Institutional Class | PVMIX           |
| C000076718 | Class J             | PVEJX           |
| C000210674 | A                   | PCMVX           |
| C000210675 | Class R-6           | PCMSX           |

### SmallCap Growth Fund I (Series ID: S000007175)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000019627 | R-3                 | PPNMX           |
| C000019628 | R-5                 | PPNPX           |
| C000019630 | Institutional Class | PGRTX           |
| C000019631 | Class J             | PSIJX           |
| C000149260 | R-6                 | PCSMX           |

### SmallCap S&P 600 Index Fund (Series ID: S000007203)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000019716 | R-3                 | PSSMX           |
| C000019717 | R-5                 | PSSPX           |
| C000019719 | Institutional Class | PSSIX           |
| C000019720 | Class J             | PSSJX           |
| C000175485 | R-6                 | PSPIX           |

### Principal LifeTime 2020 Fund (Series ID: S000007207)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000019742 | R-3                 | PTBMX           |
| C000019743 | R-5                 | PTBPX           |
| C000019745 | Institutional Class | PLWIX           |
| C000019746 | Class J             | PLFJX           |
| C000019747 | Class A             | PTBAX           |

### Principal LifeTime 2030 Fund (Series ID: S000007208)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000019751 | R-3                 | PTCMX           |
| C000019752 | R-5                 | PTCPX           |
| C000019754 | Institutional Class | PMTIX           |
| C000019755 | Class J             | PLTJX           |
| C000019756 | Class A             | PTCAX           |

### Principal LifeTime 2040 Fund (Series ID: S000007209)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000019760 | R-3                 | PTDMX           |
| C000019761 | R-5                 | PTDPX           |
| C000019763 | Institutional Class | PTDIX           |
| C000019764 | Class J             | PTDJX           |
| C000019765 | Class A             | PTDAX           |

### Principal LifeTime 2050 Fund (Series ID: S000007210)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000019770 | R-3                 | PTERX           |
| C000019771 | R-5                 | PTEFX           |
| C000019773 | Institutional Class | PPLIX           |
| C000019774 | Class J             | PFLJX           |
| C000019775 | Class A             | PPEAX           |

### Principal LifeTime Strategic Income Fund (Series ID: S000007211)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000019779 | R-3                 | PLSMX           |
| C000019780 | R-5                 | PLSPX           |
| C000019782 | Institutional Class | PLSIX           |
| C000019783 | Class J             | PLSJX           |
| C000019784 | Class A             | PALTX           |

### Real Estate Securities Fund (Series ID: S000007212)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000019787 | R-3                 | PRERX           |
| C000019788 | R-5                 | PREPX           |
| C000019790 | Institutional Class | PIREX           |
| C000019791 | Class J             | PREJX           |
| C000019792 | Class A             | PRRAX           |
| C000038802 | Class C             | PRCEX           |
| C000175486 | R-6                 | PFRSX           |

### SmallCap Fund (fka SmallCap Blend Fund) (Series ID: S000007214)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000019804 | R-3                 | PSBMX           |
| C000019805 | R-5                 | PSBPX           |
| C000019807 | Institutional Class | PSLIX           |
| C000019808 | Class J             | PSBJX           |
| C000019809 | Class A             | PLLAX           |
| C000175487 | R-6                 | PSMLX           |

### California Municipal Fund (Series ID: S000014232)

| Class ID   | Class Name    | Ticker Symbol   |
|:---|:---|:---|
| C000038715 | Class A       | SRCMX           |
| C000038717 | Class C       | SRCCX           |
| C000153061 | Institutional | PCMFX           |

### Strategic Asset Management Conservative Balanced Portfolio (Series ID: S000014233)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000038718 | Class A             | SAIPX           |
| C000038720 | Class C             | SCIPX           |
| C000038721 | Institutional Class | PCCIX           |
| C000039337 | R-3                 | PCBPX           |
| C000039340 | R-5                 | PCBFX           |
| C000039341 | Class J             | PCBJX           |

### Strategic Asset Management Conservative Growth Portfolio (Series ID: S000014234)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000038722 | Class A             | SAGPX           |
| C000038724 | Class C             | SCGPX           |
| C000038725 | Institutional Class | PCWIX           |
| C000039343 | R-5                 | PCWPX           |
| C000039344 | Class J             | PCGJX           |
| C000039346 | R-3                 | PCGPX           |

### Strategic Asset Management Flexible Income Portfolio (Series ID: S000014235)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000038726 | Class A             | SAUPX           |
| C000038728 | Class C             | SCUPX           |
| C000038729 | Institutional Class | PIFIX           |
| C000039349 | R-3                 | PFIPX           |
| C000039352 | R-5                 | PFIFX           |
| C000039353 | Class J             | PFIJX           |

### Strategic Asset Management Strategic Growth Portfolio (Series ID: S000014236)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000038730 | Class A             | SACAX           |
| C000038732 | Class C             | SWHCX           |
| C000038733 | Institutional Class | PSWIX           |
| C000039355 | R-3                 | PSGPX           |
| C000039358 | R-5                 | PSGFX           |
| C000039359 | Class J             | PSWJX           |

### Tax-Exempt Bond Fund formerly Tax-Exempt Bond Fund I (Series ID: S000014237)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000038734 | Class A             | PTEAX           |
| C000038736 | Class C             | PTBCX           |
| C000158782 | Institutional Class | PITEX           |

### Principal Capital Appreciation Fund (fka West Coast Equity Fund) (Series ID: S000014238)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000038737 | Class A             | CMNWX           |
| C000038740 | Institutional Class | PWCIX           |
| C000085760 | R-3                 | PCAOX           |
| C000085762 | R-5                 | PCAQX           |

### Equity Income Fund formerly Equity Income Fund I (Series ID: S000014240)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000038744 | Class A             | PQIAX           |
| C000038746 | Class C             | PEUCX           |
| C000038747 | Institutional Class | PEIIX           |
| C000085765 | R-3                 | PEIOX           |
| C000085767 | R-5                 | PEIQX           |
| C000204702 | Class J             | PEIJX           |

### High Yield Fund (Series ID: S000014241)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000038748 | Class A             | CPHYX           |
| C000038750 | Class C             | CCHIX           |
| C000038751 | Institutional Class | PHYTX           |
| C000175488 | R-6                 | PHYFX           |

### Core Fixed Income Fund (f/k/a Income Fund) (Series ID: S000014242)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000038752 | Class A             | CMPIX           |
| C000038755 | Institutional Class | PIOIX           |
| C000080382 | Class J             | PIOJX           |
| C000085768 | R-5                 | PIOQX           |
| C000085771 | R-3                 | PIOOX           |
| C000149261 | R-6                 | PICNX           |

### Government & High Quality Bond Fund (f/k/a Mortgage Securities Fund) (Series ID: S000014244)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000038760 | Class A             | CMPGX           |
| C000038763 | Institutional Class | PMRIX           |
| C000113842 | R-3                 | PRCMX           |
| C000113844 | R-5                 | PMREX           |
| C000113845 | Class J             | PMRJX           |

### Short-Term Income Fund (Series ID: S000014245)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000038764 | Class A             | SRHQX           |
| C000038766 | Class C             | STCCX           |
| C000038767 | Institutional Class | PSHIX           |
| C000090493 | Class J             | PSJIX           |
| C000090496 | R-3                 | PSIOX           |
| C000090498 | R-5                 | PSIQX           |

### Strategic Asset Management Balanced Portfolio (Series ID: S000014246)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000038768 | Class A             | SABPX           |
| C000038770 | Class C             | SCBPX           |
| C000038771 | Institutional Class | PSBIX           |
| C000039361 | R-3                 | PBAPX           |
| C000039364 | R-5                 | PSBFX           |
| C000039365 | Class J             | PSAJX           |

### Global Real Estate Securities Fund (Series ID: S000019119)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000052887 | Class A             | POSAX           |
| C000052889 | Institutional Class | POSIX           |
| C000149262 | R-6                 | PGRSX           |
| C000167005 | R-3                 | PGRKX           |
| C000167007 | R-5                 | PGRUX           |

### Principal LifeTime 2015 Fund (Series ID: S000022103)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000063423 | Institutional Class | LTINX           |
| C000063424 | R-3                 | LTAPX           |
| C000063426 | R-5                 | LTPFX           |

### Principal LifeTime 2025 Fund (Series ID: S000022104)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000063429 | Institutional Class | LTSTX           |
| C000063431 | R-3                 | LTVPX           |
| C000063433 | R-5                 | LTPDX           |

### Principal LifeTime 2035 Fund (Series ID: S000022105)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000063435 | R-3                 | LTAOX           |
| C000063437 | R-5                 | LTPEX           |
| C000063439 | Institutional Class | LTIUX           |

### Principal LifeTime 2045 Fund (Series ID: S000022106)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000063441 | R-3                 | LTRVX           |
| C000063443 | R-5                 | LTRDX           |
| C000063445 | Institutional Class | LTRIX           |

### Principal LifeTime 2055 Fund (Series ID: S000022107)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000063447 | R-3                 | LTFDX           |
| C000063449 | R-5                 | LTFPX           |
| C000063451 | Institutional Class | LTFIX           |

### Overseas Fund (f/k/a International Value Fund I) (Series ID: S000023512)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000069149 | Institutional Class | PINZX           |
| C000111521 | R-3 Class           | PINTX           |

### Diversified Income Fund (f/k/a Global Diversified Income Fund) (Series ID: S000024296)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000071805 | Institutional Class | PGDIX           |
| C000071807 | Class A             | PGBAX           |
| C000071808 | Class C             | PGDCX           |
| C000190075 | R-6                 | PGBLX           |

### Principal LifeTime 2060 Fund (Series ID: S000039873)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000123721 | Class J             | PLTAX           |
| C000123724 | R-3                 | PLTCX           |
| C000123726 | R-5                 | PLTOX           |
| C000123727 | Institutional Class | PLTZX           |

### Principal LifeTime Hybrid Income Fund (Series ID: S000046553)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000145302 | Institutional Class | PHTFX           |
| C000159884 | R-6                 | PLTYX           |
| C000199315 | Class J             | PHJFX           |

### Principal LifeTime Hybrid 2055 Fund (Series ID: S000046554)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000145305 | Institutional Class | PLTNX           |
| C000159885 | R-6                 | PLHTX           |
| C000199316 | Class J             | PHJBX           |

### Principal LifeTime Hybrid 2060 Fund (Series ID: S000046555)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000145308 | Institutional Class | PLTHX           |
| C000159886 | R-6                 | PLKTX           |
| C000199317 | Class J             | PHJGX           |

### Principal LifeTime Hybrid 2015 Fund (Series ID: S000046556)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000145311 | Institutional Class | PHTMX           |
| C000159887 | R-6                 | PLRRX           |
| C000199318 | Class J             | PHJMX           |

### Principal LifeTime Hybrid 2020 Fund (Series ID: S000046557)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000145314 | Institutional Class | PHTTX           |
| C000159888 | R-6                 | PLTTX           |
| C000199319 | Class J             | PHJTX           |

### Principal LifeTime Hybrid 2025 Fund (Series ID: S000046558)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000145317 | Institutional Class | PHTQX           |
| C000159889 | R-6                 | PLFTX           |
| C000199320 | Class J             | PHJQX           |

### Principal LifeTime Hybrid 2030 Fund (Series ID: S000046559)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000145320 | Institutional Class | PHTNX           |
| C000159890 | R-6                 | PLZTX           |
| C000199321 | Class J             | PHJNX           |

### Principal LifeTime Hybrid 2035 Fund (Series ID: S000046560)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000145323 | Institutional Class | PHTJX           |
| C000159891 | R-6                 | PLRTX           |
| C000199322 | Class J             | PHJJX           |

### Principal LifeTime Hybrid 2040 Fund (Series ID: S000046561)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000145326 | Institutional Class | PLTQX           |
| C000159892 | R-6                 | PLMTX           |
| C000199323 | Class J             | PHJEX           |

### Principal LifeTime Hybrid 2045 Fund (Series ID: S000046562)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000145329 | Institutional Class | PHTYX           |
| C000159893 | R-6                 | PLNTX           |
| C000199324 | Class J             | PHJYX           |

### Principal LifeTime Hybrid 2050 Fund (Series ID: S000046563)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000145332 | Institutional Class | PHTUX           |
| C000159894 | R-6                 | PLJTX           |
| C000199325 | Class J             | PHJUX           |

### Finisterre Emerging Markets Total Return Bond Fund (Series ID: S000054330)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000170736 | Institutional Class | PFUMX           |

### Principal LifeTime 2065 (Series ID: S000058847)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000193001 | Institutional Class | PLJIX           |
| C000193004 | R-3                 | PLJCX           |
| C000193006 | R-5                 | PLJEX           |

### Principal LifeTime Hybrid 2065 (Series ID: S000058848)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000193007 | Institutional Class | PLHHX           |
| C000193008 | R-6                 | PLHRX           |
| C000199326 | Class J             | PHJDX           |

### Government Money Market Fund (Series ID: S000060089)

| Class ID   | Class Name    | Ticker Symbol   |
|:---|:---|:---|
| C000196721 | Institutional | PGVXX           |
| C000239771 | Class R-6     | PGWXX           |

### Principal LifeTime Hybrid 2070 Fund (Series ID: S000079798)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000241172 | Class J             | PLKJX           |
| C000241173 | R-6                 | PLKRX           |
| C000241174 | Institutional Class | PLKSX           |

### Principal LifeTime 2070 Fund (Series ID: S000079799)

| Class ID   | Class Name          | Ticker Symbol   |
|:---|:---|:---|
| C000241176 | Institutional Class | PLTGX           |
| C000241178 | R-5                 | PLTFX           |
| C000241179 | R-3                 | PLTDX           |
| C000241180 | Class J             | PLTLX           |

### International Bond Fund (Series ID: S000101728)

| Class ID   | Class Name   | Ticker Symbol   |
|:---|:---|:---|
| C000271982 | R-6          | PIBRX           |

?xml version='1.0' encoding='ASCII'? ck0000898745-20260227

Registration No. 033-59474

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**WASHINGTON, D.C. 20549**

**FORM N-1A**

REGISTRATION STATEMENT UNDER THE SECURITIES ACT OF 1933

Post-Effective Amendment No. 293

and

REGISTRATION STATEMENT UNDER THE INVESTMENT COMPANY ACT OF 1940

Amendment No. 293

**PRINCIPAL FUNDS, INC.**

(Registrant Exact Name as Specified in Charter)

711 High Street

Des Moines, IA 50392

(Address of Principal Executive Offices)

(515) 878-0460

(Registrant's Telephone Number, including Area Code)

---

| |
|:---|
| Deanna Y. Pellack |
| The Principal Financial Group |
| Des Moines, Iowa 50392 |
| (Name and Address of Agent for Service) |

---

**Approximate Date of Proposed Public Offering:** 

As soon as practicable after the effective date of this Registration Statement.

**It is proposed that this filing will become effective (check appropriate box):**

☐&nbsp;&nbsp;&nbsp;&nbsp;immediately upon filing pursuant to paragraph (b)

☒&nbsp;&nbsp;&nbsp;&nbsp;on March 1, 2026 pursuant to paragraph (b)

☐&nbsp;&nbsp;&nbsp;&nbsp;60 days after filing pursuant to paragraph (a)

☐&nbsp;&nbsp;&nbsp;&nbsp;on (date) pursuant to paragraph (a)

☐&nbsp;&nbsp;&nbsp;&nbsp;75 days after filing pursuant to paragraph (a)(2)

☐&nbsp;&nbsp;&nbsp;&nbsp;on (date) pursuant to paragraph (a)(2) of rule 485

**If appropriate, check the following box:**

☐&nbsp;&nbsp;&nbsp;&nbsp;This post-effective amendment designates a new effective date for a previously filed post-effective amendment.

**Title of Securities Being Registered:** 

Classes A, C, J, Institutional, R-3, R-5, and R-6 Shares

**EXPLANATORY NOTE**

Principal Funds, Inc. (the "Registrant") is filing this Amendment: (1) as an annual update to the Registrant's Registration Statement for series with an October 31 fiscal year end, (2) to change the principal investment strategies and risk factors of an existing series (Inflation Protection Fund) and (3) add a new series (International Bond Fund). The Amendment includes the following: (1) facing page; (2) Part A (Prospectus for Classes A, C, J, Institutional, R-3, R-5, and R-6 Shares); (3) Part B (Statement of Additional Information for series with an October 31 fiscal year end in the share classes listed previously); (4) Part C; and (5) signature pages. The Amendment is not being filed to update or amend the prospectuses or statements of additional information for Registrant's other series or share classes with an August 31 fiscal year end.

------

**PRINCIPAL FUNDS, INC.** 

**("PFI" or the "Registrant")**

**Class A Shares**

**Class C Shares**

**Class J Shares**

**Institutional Class Shares**

**Class R-3 Shares**

**Class R-5 Shares**

**Class R-6 Shares**

The date of this Prospectus is March 1, 2026

IMPORTANT NOTICE: The proposed mergers of the Principal LifeTime 2015 Fund and Principal LifeTime Hybrid 2015 Fund into the Principal LifeTime Strategic Income Fund and Principal LifeTime Hybrid Income Fund, respectively, are expected to occur on or about June 12, 2026 (the "Merger Date"). The Fund's officers, however, have the discretion to change this date. On the Merger Date, delete all references to the Principal LifeTime 2015 Fund and Principal LifeTime Hybrid 2015 Fund from this Prospectus.

The ticker symbols for series and share classes begin on the next page.

<u>The Securities and Exchange Commission and the Commodity Futures Trading Commission have not approved or disapproved these securities or passed upon the adequacy of this Prospectus. Any representation to the contrary is a criminal offense.</u>

------

This page left blank intentionally.

------

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **FUNDS OF THE REGISTRANT** | **FUNDS OF THE REGISTRANT** | **FUNDS OF THE REGISTRANT** | **FUNDS OF THE REGISTRANT** | **FUNDS OF THE REGISTRANT** | **FUNDS OF THE REGISTRANT** | **FUNDS OF THE REGISTRANT** | **FUNDS OF THE REGISTRANT** |
| (each, a "Fund" and, together, the "Funds") | (each, a "Fund" and, together, the "Funds") | (each, a "Fund" and, together, the "Funds") | (each, a "Fund" and, together, the "Funds") | (each, a "Fund" and, together, the "Funds") | (each, a "Fund" and, together, the "Funds") | (each, a "Fund" and, together, the "Funds") | (each, a "Fund" and, together, the "Funds") |
|  | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** |
| **Fund/Portfolio** | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| California Municipal | SRCMX | SRCCX |  | PCMFX |  |  |  |
| Core Fixed Income | CMPIX |  | PIOJX | PIOIX | PIOOX | PIOQX | PICNX |
| Core Plus Bond | PRBDX |  | PBMJX | PMSIX | PBMMX | PBMPX |  |
| Diversified Income | PGBAX | PGDCX |  | PGDIX |  |  | PGBLX |
| Diversified International | PRWLX |  | PIIJX | PIIIX | PINRX | PINPX | PDIFX |
| Equity Income | PQIAX | PEUCX | PEIJX | PEIIX | PEIOX | PEIQX |  |
| Finisterre Emerging Markets Total Return Bond |  |  |  | PFUMX |  |  |  |
| Global Emerging Markets | PRIAX |  | PIEJX | PIEIX | PEAPX | PEPSX | PIIMX |
| Global Real Estate Securities | POSAX |  |  | POSIX | PGRKX | PGRUX | PGRSX |
| Government & High Quality Bond | CMPGX |  | PMRJX | PMRIX | PRCMX | PMREX |  |
| Government Money Market |  |  |  | PGVXX |  |  | PGWXX |
| High Yield | CPHYX | CCHIX |  | PHYTX |  |  | PHYFX |
| Inflation Protection |  |  | PIPJX | PIPIX | PIFPX | PBPPX |  |
| International Bond |  |  |  |  |  |  | PIBRX |
| International Equity |  |  |  | PINIX | PRPPX | PTPPX | PIIDX |
| LargeCap Growth I | PLGAX |  | PLGJX | PLGIX | PPUMX | PPUPX | PLCGX |
| LargeCap S&P 500 Index | PLSAX |  | PSPJX | PLFIX | PLFMX | PLFPX |  |
| LargeCap Value III |  |  | PLVJX | PLVIX | PPSFX | PPSRX |  |
| MidCap | PEMGX | PMBCX | PMBJX | PCBIX | PMBMX | PMBPX | PMAQX |
| MidCap S&P 400 Index |  |  | PMFJX | MPSIX | PMFMX | PMFPX | PMAPX |
| MidCap Value I | PCMVX |  | PVEJX | PVMIX | PMPRX | PABVX | PCMSX |
| Money Market | PCSXX |  | PMJXX |  |  |  |  |
| Overseas |  |  |  | PINZX | PINTX |  |  |
| Principal Capital Appreciation | CMNWX |  |  | PWCIX | PCAOX | PCAQX |  |
| Principal LifeTime Strategic Income | PALTX |  | PLSJX | PLSIX | PLSMX | PLSPX |  |
| Principal LifeTime 2015 |  |  |  | LTINX | LTAPX | LTPFX |  |
| Principal LifeTime 2020 | PTBAX |  | PLFJX | PLWIX | PTBMX | PTBPX |  |
| Principal LifeTime 2025 |  |  |  | LTSTX | LTVPX | LTPDX |  |
| Principal LifeTime 2030 | PTCAX |  | PLTJX | PMTIX | PTCMX | PTCPX |  |
| Principal LifeTime 2035 |  |  |  | LTIUX | LTAOX | LTPEX |  |
| Principal LifeTime 2040 | PTDAX |  | PTDJX | PTDIX | PTDMX | PTDPX |  |
| Principal LifeTime 2045 |  |  |  | LTRIX | LTRVX | LTRDX |  |
| Principal LifeTime 2050 | PPEAX |  | PFLJX | PPLIX | PTERX | PTEFX |  |
| Principal LifeTime 2055 |  |  |  | LTFIX | LTFDX | LTFPX |  |
| Principal LifeTime 2060 |  |  | PLTAX | PLTZX | PLTCX | PLTOX |  |
| Principal LifeTime 2065 |  |  |  | PLJIX | PLJCX | PLJEX |  |
| Principal LifeTime 2070 |  |  | PLTLX | PLTGX | PLTDX | PLTFX |  |
| Principal LifeTime Hybrid Income |  |  | PHJFX | PHTFX |  |  | PLTYX |
| Principal LifeTime Hybrid 2015 |  |  | PHJMX | PHTMX |  |  | PLRRX |
| Principal LifeTime Hybrid 2020 |  |  | PHJTX | PHTTX |  |  | PLTTX |
| Principal LifeTime Hybrid 2025 |  |  | PHJQX | PHTQX |  |  | PLFTX |
| Principal LifeTime Hybrid 2030 |  |  | PHJNX | PHTNX |  |  | PLZTX |
| Principal LifeTime Hybrid 2035 |  |  | PHJJX | PHTJX |  |  | PLRTX |
| Principal LifeTime Hybrid 2040 |  |  | PHJEX | PLTQX |  |  | PLMTX |
| Principal LifeTime Hybrid 2045 |  |  | PHJYX | PHTYX |  |  | PLNTX |
| Principal LifeTime Hybrid 2050 |  |  | PHJUX | PHTUX |  |  | PLJTX |
| Principal LifeTime Hybrid 2055 |  |  | PHJBX | PLTNX |  |  | PLHTX |
| Principal LifeTime Hybrid 2060 |  |  | PHJGX | PLTHX |  |  | PLKTX |
| Principal LifeTime Hybrid 2065 |  |  | PHJDX | PLHHX |  |  | PLHRX |
| Principal LifeTime Hybrid 2070 |  |  | PLKJX | PLKSX |  |  | PLKRX |

---

------

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **FUNDS OF THE REGISTRANT** | **FUNDS OF THE REGISTRANT** | **FUNDS OF THE REGISTRANT** | **FUNDS OF THE REGISTRANT** | **FUNDS OF THE REGISTRANT** | **FUNDS OF THE REGISTRANT** | **FUNDS OF THE REGISTRANT** | **FUNDS OF THE REGISTRANT** |
| (each, a "Fund" and, together, the "Funds") | (each, a "Fund" and, together, the "Funds") | (each, a "Fund" and, together, the "Funds") | (each, a "Fund" and, together, the "Funds") | (each, a "Fund" and, together, the "Funds") | (each, a "Fund" and, together, the "Funds") | (each, a "Fund" and, together, the "Funds") | (each, a "Fund" and, together, the "Funds") |
|  | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** |
| **Fund/Portfolio** | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Real Estate Securities | PRRAX | PRCEX | PREJX | PIREX | PRERX | PREPX | PFRSX |
| SAM Balanced | SABPX | SCBPX | PSAJX | PSBIX | PBAPX | PSBFX |  |
| SAM Conservative Balanced | SAIPX | SCIPX | PCBJX | PCCIX | PCBPX | PCBFX |  |
| SAM Conservative Growth | SAGPX | SCGPX | PCGJX | PCWIX | PCGPX | PCWPX |  |
| SAM Flexible Income | SAUPX | SCUPX | PFIJX | PIFIX | PFIPX | PFIFX |  |
| SAM Strategic Growth | SACAX | SWHCX | PSWJX | PSWIX | PSGPX | PSGFX |  |
| Short-Term Income | SRHQX | STCCX | PSJIX | PSHIX | PSIOX | PSIQX |  |
| SmallCap | PLLAX |  | PSBJX | PSLIX | PSBMX | PSBPX | PSMLX |
| SmallCap Growth I |  |  | PSIJX | PGRTX | PPNMX | PPNPX | PCSMX |
| SmallCap S&P 600 Index |  |  | PSSJX | PSSIX | PSSMX | PSSPX | PSPIX |
| SmallCap Value II |  |  | PSMJX | PPVIX | PJARX | PLARX | PSMVX |
| Tax-Exempt Bond | PTEAX | PTBCX |  | PITEX |  |  |  |

---

------

---

| | |
|:---|:---|
| **TABLE OF CONTENTS** | **TABLE OF CONTENTS** |
| | **<u>Page</u>** |
| FUND SUMMARIES |  |
| &nbsp;&nbsp;&nbsp;&nbsp;CALIFORNIA MUNICIPAL FUND | <u>[5](#ib999578ff1024ce39a972558ba9bc934_4871)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;CORE FIXED INCOME FUND | <u>[10](#ib999578ff1024ce39a972558ba9bc934_4928)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;CORE PLUS BOND FUND | <u>[15](#ib999578ff1024ce39a972558ba9bc934_4968)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;DIVERSIFIED INCOME FUND | <u>[20](#ib999578ff1024ce39a972558ba9bc934_5010)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;DIVERSIFIED INTERNATIONAL FUND | <u>[26](#ib999578ff1024ce39a972558ba9bc934_5047)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;EQUITY INCOME FUND | <u>[31](#ib999578ff1024ce39a972558ba9bc934_61)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;FINISTERRE EMERGING MARKETS TOTAL RETURN BOND FUND | <u>[35](#ib999578ff1024ce39a972558ba9bc934_70)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;GLOBAL EMERGING MARKETS FUND | <u>[41](#ib999578ff1024ce39a972558ba9bc934_79)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;GLOBAL REAL ESTATE SECURITIES FUND | <u>[46](#ib999578ff1024ce39a972558ba9bc934_88)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;GOVERNMENT & HIGH QUALITY BOND FUND | <u>[51](#ib999578ff1024ce39a972558ba9bc934_97)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;GOVERNMENT MONEY MARKET FUND | <u>[56](#ib999578ff1024ce39a972558ba9bc934_106)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;HIGH YIELD FUND | <u>[60](#ib999578ff1024ce39a972558ba9bc934_124)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;INFLATION PROTECTION FUND | <u>[64](#ib999578ff1024ce39a972558ba9bc934_133)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;INTERNATIONAL BOND FUND | <u>[68](#ib999578ff1024ce39a972558ba9bc934_4832)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;INTERNATIONAL EQUITY FUND | <u>[72](#ib999578ff1024ce39a972558ba9bc934_142)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;LARGECAP GROWTH FUND I | <u>[76](#ib999578ff1024ce39a972558ba9bc934_151)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;LARGECAP S&P 500 INDEX FUND | <u>[80](#ib999578ff1024ce39a972558ba9bc934_160)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;LARGECAP VALUE FUND III | <u>[84](#ib999578ff1024ce39a972558ba9bc934_169)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;MIDCAP FUND | <u>[88](#ib999578ff1024ce39a972558ba9bc934_178)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;MIDCAP S&P 400 INDEX FUND | <u>[92](#ib999578ff1024ce39a972558ba9bc934_205)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;MIDCAP VALUE FUND I | <u>[96](#ib999578ff1024ce39a972558ba9bc934_214)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;MONEY MARKET FUND | <u>[100](#ib999578ff1024ce39a972558ba9bc934_223)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;OVERSEAS FUND | <u>[104](#ib999578ff1024ce39a972558ba9bc934_232)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL CAPITAL APPRECIATION FUND | <u>[108](#ib999578ff1024ce39a972558ba9bc934_241)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME STRATEGIC INCOME FUND | <u>[112](#ib999578ff1024ce39a972558ba9bc934_250)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME 2015 FUND | <u>[118](#ib999578ff1024ce39a972558ba9bc934_268)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME 2020 FUND | <u>[124](#ib999578ff1024ce39a972558ba9bc934_277)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME 2025 FUND | <u>[130](#ib999578ff1024ce39a972558ba9bc934_286)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME 2030 FUND | <u>[136](#ib999578ff1024ce39a972558ba9bc934_295)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME 2035 FUND | <u>[143](#ib999578ff1024ce39a972558ba9bc934_304)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME 2040 FUND | <u>[149](#ib999578ff1024ce39a972558ba9bc934_313)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME 2045 FUND | <u>[156](#ib999578ff1024ce39a972558ba9bc934_322)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME 2050 FUND | <u>[162](#ib999578ff1024ce39a972558ba9bc934_331)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME 2055 FUND | <u>[168](#ib999578ff1024ce39a972558ba9bc934_340)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME 2060 FUND | <u>[174](#ib999578ff1024ce39a972558ba9bc934_349)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME 2065 FUND | <u>[180](#ib999578ff1024ce39a972558ba9bc934_358)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME 2070 FUND | <u>[186](#ib999578ff1024ce39a972558ba9bc934_367)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME HYBRID INCOME FUND | <u>[192](#ib999578ff1024ce39a972558ba9bc934_370)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME HYBRID 2015 FUND | <u>[199](#ib999578ff1024ce39a972558ba9bc934_379)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME HYBRID 2020 FUND | <u>[206](#ib999578ff1024ce39a972558ba9bc934_388)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME HYBRID 2025 FUND | <u>[213](#ib999578ff1024ce39a972558ba9bc934_397)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME HYBRID 2030 FUND | <u>[220](#ib999578ff1024ce39a972558ba9bc934_406)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME HYBRID 2035 FUND | <u>[227](#ib999578ff1024ce39a972558ba9bc934_415)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME HYBRID 2040 FUND | <u>[233](#ib999578ff1024ce39a972558ba9bc934_424)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME HYBRID 2045 FUND | <u>[240](#ib999578ff1024ce39a972558ba9bc934_433)</u> |

---

------

---

| | |
|:---|:---|
| **TABLE OF CONTENTS** | **TABLE OF CONTENTS** |
| | **<u>Page</u>** |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME HYBRID 2050 FUND | <u>[247](#ib999578ff1024ce39a972558ba9bc934_442)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME HYBRID 2055 FUND | <u>[254](#ib999578ff1024ce39a972558ba9bc934_451)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME HYBRID 2060 FUND | <u>[261](#ib999578ff1024ce39a972558ba9bc934_460)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME HYBRID 2065 FUND | <u>[268](#ib999578ff1024ce39a972558ba9bc934_469)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;PRINCIPAL LIFETIME HYBRID 2070 FUND | <u>[275](#ib999578ff1024ce39a972558ba9bc934_478)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;REAL ESTATE SECURITIES FUND | <u>[281](#ib999578ff1024ce39a972558ba9bc934_481)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;SAM (STRATEGIC ASSET MANAGEMENT) BALANCED PORTFOLIO | <u>[287](#ib999578ff1024ce39a972558ba9bc934_490)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;SAM (STRATEGIC ASSET MANAGEMENT) CONSERVATIVE BALANCED PORTFOLIO | <u>[292](#ib999578ff1024ce39a972558ba9bc934_499)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;SAM (STRATEGIC ASSET MANAGEMENT) CONSERVATIVE GROWTH PORTFOLIO | <u>[298](#ib999578ff1024ce39a972558ba9bc934_508)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;SAM (STRATEGIC ASSET MANAGEMENT) FLEXIBLE INCOME PORTFOLIO | <u>[303](#ib999578ff1024ce39a972558ba9bc934_517)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;SAM (STRATEGIC ASSET MANAGEMENT) STRATEGIC GROWTH PORTFOLIO | <u>[308](#ib999578ff1024ce39a972558ba9bc934_526)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;SHORT-TERM INCOME FUND | <u>[313](#ib999578ff1024ce39a972558ba9bc934_535)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;SMALLCAP FUND | <u>[317](#ib999578ff1024ce39a972558ba9bc934_544)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;SMALLCAP GROWTH FUND I | <u>[321](#ib999578ff1024ce39a972558ba9bc934_553)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;SMALLCAP S&P 600 INDEX FUND | <u>[325](#ib999578ff1024ce39a972558ba9bc934_562)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;SMALLCAP VALUE FUND II | <u>[329](#ib999578ff1024ce39a972558ba9bc934_571)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;TAX-EXEMPT BOND FUND | <u>[333](#ib999578ff1024ce39a972558ba9bc934_580)</u> |
| ADDITIONAL INFORMATION ABOUT INVESTMENT STRATEGIES AND RISKS | <u>[338](#ib999578ff1024ce39a972558ba9bc934_589)</u> |
| PORTFOLIO HOLDINGS INFORMATION | <u>[371](#ib999578ff1024ce39a972558ba9bc934_592)</u> |
| MANAGEMENT OF THE FUNDS | <u>[372](#ib999578ff1024ce39a972558ba9bc934_595)</u> |
| PRICING OF FUND SHARES | <u>[380](#ib999578ff1024ce39a972558ba9bc934_598)</u> |
| CONTACT PRINCIPAL FUNDS, INC. | <u>[381](#ib999578ff1024ce39a972558ba9bc934_601)</u> |
| PURCHASE OF FUND SHARES | <u>[382](#ib999578ff1024ce39a972558ba9bc934_604)</u> |
| REDEMPTION OF FUND SHARES | <u>[387](#ib999578ff1024ce39a972558ba9bc934_607)</u> |
| EXCHANGE OF FUND SHARES | <u>[391](#ib999578ff1024ce39a972558ba9bc934_610)</u> |
| DIVIDENDS AND DISTRIBUTIONS | <u>[394](#ib999578ff1024ce39a972558ba9bc934_613)</u> |
| FREQUENT PURCHASES AND REDEMPTIONS | <u>[395](#ib999578ff1024ce39a972558ba9bc934_616)</u> |
| TAX CONSIDERATIONS | <u>[396](#ib999578ff1024ce39a972558ba9bc934_619)</u> |
| CHOOSING A SHARE CLASS AND THE COSTS OF INVESTING | <u>[398](#ib999578ff1024ce39a972558ba9bc934_622)</u> |
| DISTRIBUTION PLANS AND INTERMEDIARY COMPENSATION | <u>[405](#ib999578ff1024ce39a972558ba9bc934_625)</u> |
| FUND ACCOUNT INFORMATION | <u>[407](#ib999578ff1024ce39a972558ba9bc934_628)</u> |
| APPENDIX A - DESCRIPTION OF BOND RATINGS | <u>[A](#ib999578ff1024ce39a972558ba9bc934_631)-1</u> |
| APPENDIX B - INTERMEDIARY-SPECIFIC SALES CHARGE WAIVERS AND REDUCTIONS | <u>[B](#ib999578ff1024ce39a972558ba9bc934_634)-1</u> |
| APPENDIX C - FINANCIAL HIGHLIGHTS | <u>[C](#ib999578ff1024ce39a972558ba9bc934_637)-1</u> |
| ADDITIONAL INFORMATION | D |

---

------

**CALIFORNIA MUNICIPAL FUND**

**Objective**

The Fund seeks to provide as high a level of current income that is exempt from federal and state personal income tax as is consistent with prudent investment management and preservation of capital.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **Inst.** |
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 3.75% |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **Inst.** |
| Management Fees | 0.40% | 0.40% | 0.40% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 1.00% | N/A |
| Other Expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest Expense <sup>(1)</sup> | 0.14% | 0.14% | 0.14% |
| &nbsp;&nbsp;&nbsp;&nbsp;Remainder of Other Expenses | 0.06% | 0.13% | 0.10% |
| Total Other Expenses | 0.20% | 0.27% | 0.24% |
| **Total Annual Fund Operating Expenses** | **0.85%** | **1.67%** | **0.64%** |
| Expense Reimbursement <sup>(2)</sup> | N/A | N/A | (0.04)% |
| **Total Annual Fund Operating Expenses after Expense Reimbursement** | **0.85%** | **1.67%** | **0.60%** |

---

<sup>(1)</sup> Includes interest expense from inverse floaters.

<sup>(2)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.46% for Institutional Class shares. It is expected that the expense limit will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limit prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

------

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example assumes conversion of the Class C shares to Class A shares after the eighth year. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $459 | $636 | $829 | $1385 |
| **Class C** | 270 | 526 | 907 | 1758 |
| **Institutional Class** | 61 | 201 | 353 | 795 |

---

With respect to Class C shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class C** | $170 | $526 | $907 | $1758 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 52.2% of the average value of its portfolio.

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in California municipal obligations (securities issued by or on behalf of state or local governments and other public authorities). Generally, these municipal obligations pay interest that is exempt from state personal income tax and federal income tax. These obligations may include bonds that generate interest payments that are subject to the federal individual alternative minimum tax. The Fund's investment in municipal obligations include industrial revenue bonds. The Fund invests up to 20% of its net assets in below-investment-grade bonds (sometimes called "high yield bonds" or "junk bonds"), which are rated at the time of purchase Ba1 or lower by Moody's Investors Service, Inc. ("Moody's") and BB+ or lower by S&P Global Ratings ("S&P Global"). If the bond has been rated by only one of the rating agencies, that rating will determine the bond's rating; if the bond is rated differently by the rating agencies, the highest rating will be used; and if the bond has not been rated by either of the rating agencies, those selecting such investments will determine the bond's quality. The Fund also invests in inverse floating rate obligations (variable rate debt instruments that pay interest at rates that move in the opposite direction of prevailing interest rates), which are generally more volatile than other types of municipal obligations and may involve leverage.

Under normal circumstances, the Fund maintains an average portfolio duration that is within ±50% of the duration of the Bloomberg California Municipal Bond Index, which as of January 31, 2026 was 6.25 years. The Fund is not managed to a particular maturity.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

------

**Geographic Concentration Risk.** A fund that invests significant portions of its assets in municipal obligations and bonds in particular geographic areas (a particular state, such as California, or a particular country or region) has greater exposure than other funds to economic conditions and developments in those areas.

**High Yield Securities Risk.** High yield fixed-income securities (commonly referred to as "junk bonds") are subject to greater credit quality risk than higher rated fixed-income securities and should be considered speculative.

**Industrial Revenue Bond Risk.** The Fund will be sensitive to, and its performance will depend to a greater extent on, the overall condition and performance of industrial revenue bonds. These revenue bonds are issued by or on behalf of public authorities to obtain funds to finance various public and/or privately operated facilities, including those for business and manufacturing, housing, sports, pollution control, airport, mass transit, port, and parking facilities. These bonds are normally secured only by the revenues from the project and not by state or local government tax payments. Consequently, the credit quality of these bonds is dependent upon the ability of the user of the facilities financed by the bonds and any guarantor to meet its financial obligations.

**Inverse Floating Rate Investments Risk.** Inverse floating rate investments are extremely sensitive to changes in interest rates and, in some cases, their market value may be extremely volatile.

**Municipal Obligations Risk.** Principal and interest payments on municipal securities may not be guaranteed by the issuing body and may be payable only from a particular source. That source may not perform as expected, and payment obligations may not be made or made on time.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

------

**Total Returns as of December 31**

![7824](ck0000898745-20260227_g1.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q4 2023** | **5.67%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2022** | **(7.07)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **(0.32)%** | **(0.39)%** | **1.72%** |
| **Class A Return After Taxes on Distributions** | **(0.32)%** | **(0.39)%** | **1.72%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **1.19%** | **0.33%** | **1.95%** |
| **Class C Return Before Taxes** | **1.68%** | **(0.45)%** | **1.44%** |
| **Institutional Class Return Before Taxes** | **3.68%** | **0.62%** | **2.35%** |
| Bloomberg Municipal Bond Index (reflects no deduction for fees, expenses, or taxes) | 4.25% | 0.80% | 2.34% |
| Bloomberg California Municipal Index (reflects no deduction for fees, expenses, or taxes) | 4.11% | 0.76% | 2.29% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

The Bloomberg Municipal Bond Index is the Fund's primary broad-based securities market index. The Bloomberg California Municipal 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James Noble (since 2013), Portfolio Manager

• James Welch (since 2014), Portfolio Manager

------

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A and C** | Initial Investment | $1000<sup>(1)</sup> |
| **A and C** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A and C** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

Class C shares are subject to an 8-year automatic conversion plan whereby Class C shares held for eight years after purchase will automatically convert to Class A shares of the same Fund. See Purchase of Fund Shares for more information.

**Tax Information**

While the Fund intends to distribute income that is exempt from regular federal and California income taxes, a portion of the Fund's distributions may be subject to California or federal income taxes or to the federal individual alternative minimum tax.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**CORE FIXED INCOME FUND**

**Objective**

The Fund seeks to provide a high level of current income consistent with preservation of capital.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Maximum Sales Charge (Load) Imposed on Purchases <br>(as a percentage of offering price) | 2.25% |  |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% |  |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Management Fees | 0.33% | 0.33% | 0.33% | 0.33% | 0.33% | 0.33% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 0.15% | N/A | 0.25% | N/A | N/A |
| Other Expenses | 0.13% | 0.09% | 0.11% | 0.32% | 0.26% | 0.01% |
| **Total Annual Fund Operating Expenses** | **0.71%** | **0.57%** | **0.44%** | **0.90%** | **0.59%** | **0.34%** |
| Expense Reimbursement <sup>(1)</sup> | N/A | N/A | (0.01)% | N/A | N/A | N/A |
| **Total Annual Fund Operating Expenses after Expense Reimbursement** | **0.71%** | **0.57%** | **0.43%** | **0.90%** | **0.59%** | **0.34%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.43% for Institutional Class shares. It is expected that the expense limit will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limit prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

------

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $296 | $447 | $611 | $1088 |
| **Class J** | 158 | 183 | 318 | 714 |
| **Institutional Class** | 44 | 140 | 245 | 554 |
| **Class R-3** | 92 | 287 | 498 | 1108 |
| **Class R-5** | 60 | 189 | 329 | 738 |
| **Class R-6** | 35 | 109 | 191 | 431 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $58 | $183 | $318 | $714 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 13.4% of the average value of its portfolio.

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in fixed-income securities. The Fund invests primarily in a diversified pool of investment-grade fixed-income securities, which includes corporate securities, U.S. government securities, asset-backed securities and mortgage-backed securities (securitized products), bank loans, and foreign securities. Investment grade securities are rated BBB- or higher by S&P Global Ratings ("S&P Global") or Baa3 or higher by Moody's Investors Service, Inc. ("Moody's"), at the time of purchase. If the security has been rated by only one of the rating agencies, that rating will determine the security's rating; if the security is rated differently by the rating agencies, the highest rating is used; and if the security has not been rated by either of the rating agencies, those selecting such investments will determine the security's quality. The Fund is not managed to a particular maturity. Under normal circumstances, the Fund maintains an average portfolio duration that is within ±25% of the duration of the Bloomberg US Aggregate Index, which as of January 31, 2026 was 5.76 years.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

------

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Real Estate Securities Risk.** Investing in real estate securities subjects the fund to the risks associated with the real estate market (which are similar to the risks associated with direct ownership in real estate), including declines in real estate values, loss due to casualty or condemnation, property taxes, interest rate changes, increased expenses, cash flow of underlying real estate assets, regulatory changes (including zoning, land use, and rents), and environmental problems, as well as to the risks related to the management skill and creditworthiness of the issuer.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Securitized Products Risk.** Investments in securitized products are subject to risks similar to traditional fixed-income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Unscheduled prepayments on securitized products may have to be reinvested at lower rates. A reduction in prepayments may increase the effective maturities of these securities, exposing them to the risk of decline in market value over time (extension risk).

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

**U.S. Government-Sponsored Securities Risk.** Securities issued by U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. government.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

------

**Total Returns as of December 31**

![6354](ck0000898745-20260227_g2.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q4 2023** | **6.75%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2022** | **(5.80)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **4.39%** | **(1.05)%** | **1.96%** |
| **Class A Return After Taxes on Distributions** | **2.97%** | **(2.15)%** | **0.80%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **2.58%** | **(1.26)%** | **1.00%** |
| **Class J Return Before Taxes** | **6.00%** | **(0.44)%** | **2.33%** |
| **Institutional Class Return Before Taxes** | **7.02%** | **(0.33)%** | **2.49%** |
| **Class R-3 Return Before Taxes** | **6.62%** | **(0.77)%** | **2.01%** |
| **Class R-5 Return Before Taxes** | **6.85%** | **(0.49)%** | **2.31%** |
| **Class R-6 Return Before Taxes** | **7.13%** | **(0.23)%** | **2.57%** |
| Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• Jeff Callahan (since 2025), Portfolio Manager

• Bryan C. Davis (since 2025), Portfolio Manager

• John R. Friedl (since 2005), Portfolio Manager

• Michael Goosay (since 2023), Portfolio Manager

------

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, R-5, and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchases. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**CORE PLUS BOND FUND** 

**Objective**

The Fund seeks to provide current income and, as a secondary objective, capital appreciation.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** |
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 3.75% |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class**  | **Share Class**  | **Share Class**  | **Share Class**  | **Share Class**  |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.42% | 0.42% | 0.42% | 0.42% | 0.42% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 0.15% | N/A | 0.25% | N/A |
| Other Expenses | 0.22% | 0.24% | 0.15% | 0.34% | 0.28% |
| Acquired Fund Fees and Expenses | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% |
| **Total Annual Fund Operating Expenses** | **0.90%** | **0.82%** | **0.58%** | **1.02%** | **0.71%** |
| Expense Reimbursement <sup>(1)</sup> | (0.09)% | N/A | (0.09)% | N/A | N/A |
| **Total Annual Fund Operating Expenses after Expense Reimbursement** | **0.81%** | **0.82%** | **0.49%** | **1.02%** | **0.71%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.80% for Class A and 0.48% for Institutional Class shares. It is expected that the expense limits will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $455 | $643 | $846 | $1433 |
| **Class J** | 184 | 262 | 455 | 1014 |
| **Institutional Class** | 50 | 177 | 315 | 717 |
| **Class R-3** | 104 | 325 | 563 | 1248 |
| **Class R-5** | 73 | 227 | 395 | 883 |

---

------

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $84 | $262 | $455 | $1014 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 165.0% of the average value of its portfolio.

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in bonds. Bonds 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 invests in investment-grade securities and, with respect to up to 25% of its assets, in below-investment-grade securities (sometimes called "high yield" or "junk"), which are rated at the time of purchase Ba1 or lower by Moody's Investors Service, Inc. ("Moody's") and BB+ or lower by S&P Global Ratings ("S&P Global"). If the security has been rated by only one of the rating agencies, that rating will determine the security's rating; if the security is rated differently by the rating agencies, the highest rating will be used; and if the security has not been rated by either of the rating agencies, those selecting such investments will determine the security's quality. The Fund is not managed to a particular maturity. Under normal circumstances, the Fund maintains an average portfolio duration that is within ±25% of the duration of the Bloomberg US Aggregate Index, which as of January 31, 2026 was 5.76 years. The Fund's strategies may result in the active and frequent trading of the Fund's portfolio securities.

The Fund enters into dollar roll transactions, which may involve leverage. The Fund invests in derivatives, including Treasury futures, credit index futures, and interest rate swaps to manage the fixed-income exposure (including for hedging purposes) and credit default swaps to increase or decrease, in an efficient manner, exposures to certain sectors or individual issuers. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Credit Default Swaps.** Credit default swaps involve special risks in addition to those associated with swaps generally because they are difficult to value, are highly susceptible to liquidity and credit risk, and generally pay a return to the party that has paid the premium only in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial difficulty). The protection "buyer" in a credit default contract may be obligated to pay the protection "seller" an up-front payment or a periodic stream of payments over the term of the contract, provided, generally, that no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the buyer the "par value" (i.e., full notional value) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity described in the swap, or the seller may be required to deliver the related net cash amount, if the swap is cash settled. The Fund may be either the buyer or seller in the transaction.

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• **Futures and Swaps.** These derivative instruments involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the fund and the price of the instruments; possible lack of a liquid secondary market for an instrument and the resulting inability to close it when desired; counterparty risk; and if the fund has insufficient cash, it may have to sell securities from its portfolio to meet any applicable daily variation margin requirements.

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Hedging Risk.** A fund that implements a hedging strategy using derivatives and/or securities could expose the fund to the risk that can arise when a change in the value of a hedge does not match a change in the value of the asset it hedges. In other words, the change in value of the hedge could move in a direction that does not match the change in value of the underlying asset, resulting in a risk of loss to the Fund.

**High Portfolio Turnover Risk.** High portfolio turnover (more than 100%) caused by active and frequent trading of portfolio securities may result in accelerating the realization of taxable gains and losses, lower fund performance, and increased brokerage costs.

**High Yield Securities Risk.** High yield fixed-income securities (commonly referred to as "junk bonds") are subject to greater credit quality risk than higher rated fixed-income securities and should be considered speculative.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Real Estate Securities Risk.** Investing in real estate securities subjects the fund to the risks associated with the real estate market (which are similar to the risks associated with direct ownership in real estate), including declines in real estate values, loss due to casualty or condemnation, property taxes, interest rate changes, increased expenses, cash flow of underlying real estate assets, regulatory changes (including zoning, land use, and rents), and environmental problems, as well as to the risks related to the management skill and creditworthiness of the issuer.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

------

**Securitized Products Risk.** Investments in securitized products are subject to risks similar to traditional fixed-income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Unscheduled prepayments on securitized products may have to be reinvested at lower rates. A reduction in prepayments may increase the effective maturities of these securities, exposing them to the risk of decline in market value over time (extension risk).

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

**U.S. Government-Sponsored Securities Risk.** Securities issued by U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. government.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

**Total Returns as of December 31**

![7192](ck0000898745-20260227_g3.jpg)

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| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q4 2023** | **7.36%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q2 2022** | **(6.07)%** |

---

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**Average Annual Total Returns**

**For the periods ended December 31, 2025**

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| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **2.95%** | **(1.58)%** | **1.58%** |
| **Class A Return After Taxes on Distributions** | **1.16%** | **(2.86)%** | **0.19%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **1.72%** | **(1.72)%** | **0.64%** |
| **Class J Return Before Taxes** | **6.02%** | **(0.84)%** | **1.98%** |
| **Institutional Class Return Before Taxes** | **7.45%** | **(0.53)%** | **2.32%** |
| **Class R-3 Return Before Taxes** | **6.83%** | **(1.04)%** | **1.78%** |
| **Class R-5 Return Before Taxes** | **7.14%** | **(0.72)%** | **2.10%** |
| Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• Bryan C. Davis (since 2022), Portfolio Manager

• John R. Friedl (since 2025), Portfolio Manager

• Michael Goosay (since 2023), Portfolio Manager

• Tina Paris (since 2025), Portfolio Manager

**Purchase and Sale of Fund Shares**

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| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, and R-5** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

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<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

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**DIVERSIFIED INCOME FUND**

**Objective**

The Fund seeks income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **Inst.** | **R-6** |
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 3.75% |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% |  |  |

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**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **Inst.** | **R-6** |
| Management Fees | 0.66% | 0.66% | 0.66% | 0.66% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 1.00% | N/A | N/A |
| Other Expenses <sup>(1)</sup> | 0.12% | 0.14% | 0.12% | 0.06% |
| Acquired Fund Fees and Expenses | 0.04% | 0.04% | 0.04% | 0.04% |
| **Total Annual Fund Operating Expenses** | **1.07%** | **1.84%** | **0.82%** | **0.76%** |
| Expense Reimbursement <sup>(2)</sup> | N/A | N/A | (0.09)% | (0.03)% |
| **Total Annual Fund Operating Expenses after Expense Reimbursement** | **1.07%** | **1.84%** | **0.73%** | **0.73%** |

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<sup>(1)</sup> Includes 0.01% of expenses associated with the reclaim of foreign taxes paid. The expense is not subject to the contractual expense limit.

<sup>(2)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.68% for Institutional Class shares. In addition, for Class R-6, the expense limit will maintain "Other Expenses" (expressed as a percent of average net assets on an annualized basis) not to exceed 0.02%, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses). It is expected that the expense limits will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

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**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example assumes conversion of the Class C shares to Class A shares after the eighth year. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $480 | $703 | $943 | $1632 |
| **Class C** | 287 | 579 | 995 | 1957 |
| **Institutional Class** | 75 | 253 | 446 | 1005 |
| **Class R-6** | 75 | 240 | 419 | 939 |

---

With respect to Class C shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class C** | $187 | $579 | $995 | $1957 |

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**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 92.9% of the average value of its portfolio.

**Principal Investment Strategies**

The Fund generally invests a majority of its assets in fixed-income securities, such as investment-grade corporate bonds, high yield bonds (also known as "junk" bonds), preferred securities, securitized products, and emerging market debt securities, in an effort to provide incremental yields over a portfolio of government securities. Such securities include instruments with variable or floating interest rates. The fixed-income portion of the Fund is not managed to a particular maturity or duration. The Fund invests in foreign, including emerging market, securities. The Fund uses derivative strategies. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index.

In managing the Fund, Principal Global Investors, LLC ("PGI"), the Fund's investment advisor, determines the Fund's strategic asset allocation among actively managed and passively managed (index) strategies that are executed by PGI and multiple sub-advisors. PGI has considerable latitude in allocating the Fund's assets among the general investment categories listed below. The Fund uses strategies and sub-advisors to varying degrees and may change allocations, add new or eliminate existing strategies and sub-advisors, and temporarily or permanently reduce allocations from time to time such that the Fund would have little or no assets allocated to a particular strategy or sub-advisor.

• Investment-grade corporate securities, which are rated at the time of purchase Baa3 or higher by Moody's Investors Service ("Moody's") or BBB- or higher by S&P Global Ratings ("S&P Global").

• High yield and other income-producing securities, including bank loans and corporate bonds. "High yield" securities are below investment grade securities (sometimes called "junk"), which are rated at the time of purchase Ba1 or lower by Moody's and BB+ or lower by S&P Global. These securities offer a higher yield than other, higher rated securities, but they carry a greater degree of risk and are considered speculative with respect to the issuer's ability to pay interest and to repay principal. This portion of the Fund also invests in currency forwards and currency options to hedge currency risk.

• Preferred securities, focusing primarily on the financial services and utility industries.

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• Diversified portfolio of fixed-income securities, including those issued by governments and their agencies and corporate entities in emerging markets. This portion of the Fund also invests in interest rate swaps or Treasury futures to manage fixed-income exposure; credit default swaps to increase or decrease in an efficient manner exposures to certain sectors or individual issuers; total return swaps to increase or decrease in an efficient manner exposures to certain sectors; and currency forwards and currency options to hedge currency risk and express views on the direction of currency.

• Securitized products such as asset-backed securities and mortgage-backed securities, including commercial mortgage-backed securities, which are bonds secured by first mortgages on commercial real estate.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Asset Allocation Risk.** A fund's selection and weighting of asset classes and allocation among sub-advisors may cause it to underperform other funds with a similar investment objective.

**Bank Loans Risk.** Changes in economic conditions are likely to cause issuers of bank loans (also known as senior floating rate interests) to be unable to meet their obligations. In addition, the value of the collateral securing the loan (if any) may decline, causing a loan to be substantially unsecured. Underlying credit agreements governing the bank loans, reliance on market makers, priority of repayment, and overall market volatility may harm the liquidity of loans.

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

**• Credit Default Swaps.** Credit default swaps involve special risks in addition to those associated with swaps generally because they are difficult to value, are highly susceptible to liquidity and credit risk, and generally pay a return to the party that has paid the premium only in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial difficulty). The protection "buyer" in a credit default contract may be obligated to pay the protection "seller" an up-front payment or a periodic stream of payments over the term of the contract, provided, generally, that no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the buyer the "par value" (i.e., full notional value) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity described in the swap, or the seller may be required to deliver the related net cash amount, if the swap is cash settled. The Fund may be either the buyer or seller in the transaction.

**• Currency Contracts.** Derivatives related to currency contracts involve the specific risk of government action that would restrict the ability of the Fund to deliver or receive currency.

• **Forward Contracts, Futures, and Swaps.** Forward contracts, futures, and swaps involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the forward contract, future, or swap; possible lack of a liquid secondary market for a forward contract, future, or swap and the resulting inability to close a forward contract, future, or swap when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

**• Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

------

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Floating and Variable Rate Securities Risk.** The market prices of securities with variable and floating interest rates are generally less sensitive to interest rate changes than are the market prices of securities of fixed interest rates. Floating and variable rate securities may decline in value if market interest rates or interest rates paid by them do not move as expected. Floating and variable rate securities may be subject to greater liquidity risk than other debt securities, meaning that there may be limitations on the Fund's ability to sell the securities at any given time.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Hedging Risk.** A fund that implements a hedging strategy using derivatives and/or securities could expose the fund to the risk that can arise when a change in the value of a hedge does not match a change in the value of the asset it hedges. In other words, the change in value of the hedge could move in a direction that does not match the change in value of the underlying asset, resulting in a risk of loss to the Fund.

**High Yield Securities Risk.** High yield fixed-income securities (commonly referred to as "junk bonds") are subject to greater credit quality risk than higher rated fixed-income securities and should be considered speculative.

**Index (Passive) Strategy Risk.** An index (passive) fund (or passive strategy that is part of a fund) has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between an index strategy's performance and index performance may also be affected by the type of passive investment approach used (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of shares.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Preferred Securities Risk.** Because preferred securities have a lower priority claim on assets or earnings than senior bonds and other debt instruments in a company's capital structure, they are subject to greater credit and liquidation risk than more senior debt instruments. In addition, preferred securities are subject to other risks, such as limited or no voting rights, deferring or skipping distributions, interest rate risk, and redeeming the security prior to any stated maturity date.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Securitized Products Risk.** Investments in securitized products are subject to risks similar to traditional fixed-income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Unscheduled prepayments on securitized products may have to be reinvested at lower rates. A reduction in prepayments may increase the effective maturities of these securities, exposing them to the risk of decline in market value over time (extension risk).

------

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Class R-6 shares (June 12, 2017), the performance shown in the table for Class R-6 shares is that of the Fund's Institutional Class shares, adjusted to reflect the fees and expenses of Class R-6 shares. These adjustments result in performance for such periods that is no higher than the historical performance of the Institutional Class shares.

**Total Returns as of December 31**

![9184](ck0000898745-20260227_g4.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q4 2020** | **8.39%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(17.02)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **2.20%** | **2.18%** | **3.80%** |
| **Class A Return After Taxes on Distributions** | **(0.08)%** | **0.09%** | **1.82%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **1.35%** | **0.80%** | **2.10%** |
| **Class C Return Before Taxes** | **4.36%** | **2.18%** | **3.56%** |
| **Institutional Class Return Before Taxes** | **6.49%** | **3.29%** | **4.53%** |
| **Class R-6 Return Before Taxes** | **6.49%** | **3.32%** | **4.55%** |
| Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes)  | 7.30% | (0.36)% | 2.01% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

------

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• Jessica S. Bush (since 2014), Portfolio Manager

• Benjamin E. Rotenberg (since 2014), Portfolio Manager

• May Tong (since 2021), Portfolio Manager

**Sub-Advisors**

BlackRock Financial Management, Inc.

Grantham, Mayo, Van Otterloo & Co. LLC

Nuveen Asset Management LLC

PineBridge Investments LLC

Polen Capital Credit, LLC

Post Advisory Group, LLC

Spectrum Asset Management, Inc.

**Sub-Sub-Advisor** 

BlackRock International Limited

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A and C** | Initial Investment | $1000<sup>(1)</sup> |
| **A and C** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A and C** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

Class C shares are subject to an 8-year automatic conversion plan whereby Class C shares held for eight years after purchase will automatically convert to Class A shares of the same Fund. See Purchase of Fund Shares for more information.

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**DIVERSIFIED INTERNATIONAL FUND**

**Objective**

The Fund seeks long-term growth of capital.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 5.50% |  |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% |  |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Management Fees | 0.74% | 0.74% | 0.74% | 0.74% | 0.74% | 0.74% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 0.15% | N/A | 0.25% | N/A | N/A |
| Other Expenses <sup>(1)</sup> | 0.23% | 0.22% | 0.17% | 0.40% | 0.34% | 0.02% |
| **Total Annual Fund Operating Expenses** | **1.22%** | **1.11%** | **0.91%** | **1.39%** | **1.08%** | **0.76%** |
| Expense Reimbursement <sup>(2)</sup> | N/A | N/A | (0.05)% | N/A | N/A | 0.00% |
| **Total Annual Fund Operating Expenses after Expense Reimbursement** | **1.22%** | **1.11%** | **0.86%** | **1.39%** | **1.08%** | **0.76%** |

---

<sup>(1)</sup> Includes 0.01% of expenses associated with consulting fees. The expense is not subject to the contractual expense limit.

<sup>(2)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.85% for Institutional Class shares. In addition, for Class R-6, the expense limit will maintain "Other Expenses" (expressed as a percent of average net assets on an annualized basis) not to exceed 0.04%, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses). It is expected that the expense limits will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

------

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $667 | $916 | $1183 | $1946 |
| **Class J** | 213 | 353 | 612 | 1352 |
| **Institutional Class** | 88 | 285 | 499 | 1115 |
| **Class R-3** | 142 | 440 | 761 | 1669 |
| **Class R-5** | 110 | 343 | 595 | 1317 |
| **Class R-6** | 78 | 243 | 422 | 942 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $113 | $353 | $612 | $1352 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 38.2% of the average value of its portfolio.

**Principal Investment Strategies**

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. Primary consideration is given to securities of issuers of developed areas (for example, Japan, Western Europe, Canada, Australia, Hong Kong, and Singapore); however, the Fund also invests in emerging market securities. The Fund invests in equity securities regardless of market capitalization size (small, medium, or large) and style (growth or value).

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

------

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Class R-6 shares (March 1, 2019), the performance shown in the table for Class R-6 shares is that of the Fund's Class R-3 shares, adjusted to reflect the fees and expenses of Class R-6 shares. However, where the adjustment for fees and expenses results in performance for Class R-6 shares that is higher than the historical performance of the Class R-3 shares, the historical performance of the Class R-3 shares is used. These adjustments result in performance for such periods that is no higher than the historical performance of the Class R-3 shares.

------

**Total Returns as of December 31**

![6754](ck0000898745-20260227_g5.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **17.41%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(22.11)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **24.95%** | **5.94%** | **7.22%** |
| **Class A Return After Taxes on Distributions** | **24.19%** | **4.84%** | **6.46%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **15.70%** | **4.45%** | **5.74%** |
| **Class J Return Before Taxes** | **31.33%** | **7.29%** | **7.98%** |
| **Institutional Class Return Before Taxes** | **32.66%** | **7.55%** | **8.27%** |
| **Class R-3 Return Before Taxes** | **32.05%** | **7.02%** | **7.72%** |
| **Class R-5 Return Before Taxes** | **32.41%** | **7.36%** | **8.06%** |
| **Class R-6 Return Before Taxes** | **32.73%** | **7.64%** | **8.15%** |
| MSCI ACWI Ex USA Index NTR (reflects withholding taxes on foreign dividends, but no deduction for fees, expenses, or other taxes) | 32.39% | 7.91% | 8.41% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• Paul H. Blankenhagen (since 2003), Portfolio Manager

• George P. Maris (since 2023), Portfolio Manager

• Matthew Peron (since 2025), Portfolio Manager

------

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, R-5, and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchases. | N/A |

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<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**EQUITY INCOME FUND**

**Objective**

The Fund seeks to provide current income and long-term growth of income and capital.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** |
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 5.50% |  |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% | 1.00% |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 1.00% | 0.15% | N/A | 0.25% | N/A |
| Other Expenses | 0.10% | 0.13% | 0.09% | 0.04% | 0.33% | 0.27% |
| **Total Annual Fund Operating Expenses** | **0.85%** | **1.63%** | **0.74%** | **0.54%** | **1.08%** | **0.77%** |
| Expense Reimbursement <sup>(1)</sup> | N/A | N/A | N/A | (0.02)% | N/A | N/A |
| **Total Annual Fund Operating Expenses after Expense Reimbursement** | **0.85%** | **1.63%** | **0.74%** | **0.52%** | **1.08%** | **0.77%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.52% for Institutional Class shares. It is expected that the expense limit will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limit prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example assumes conversion of the Class C shares to Class A shares after the eighth year. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $632 | $806 | $995 | $1541 |
| **Class C** | 266 | 514 | 887 | 1724 |
| **Class J** | 176 | 237 | 411 | 918 |
| **Institutional Class** | 53 | 171 | 300 | 675 |
| **Class R-3** | 110 | 343 | 595 | 1317 |
| **Class R-5** | 79 | 246 | 428 | 954 |

---

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With respect to Class C and J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class C** | $166 | $514 | $887 | $1724 |
| **Class J** | 76 | 237 | 411 | 918 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 16.7% of the average value of its portfolio.

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, 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.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

------

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Class J shares (October 9, 2018), the performance shown in the table for Class J shares is that of the Fund's Class A shares, adjusted to reflect the fees and expenses of Class J shares. However, where the adjustment for fees and expenses results in performance for Class J shares that is higher than the historical performance of the Class A shares, the historical performance of the Class A shares is used without respect to sales charges. These adjustments result in performance for such periods that is no higher than the historical performance of Class A shares.

**Total Returns as of December 31**

![8977](ck0000898745-20260227_g6.jpg)

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| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q4 2020** | **15.59%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(25.44)%** |

---

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**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **8.89%** | **8.57%** | **10.45%** |
| **Class A Return After Taxes on Distributions** | **6.51%** | **6.91%** | **9.00%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **6.94%** | **6.56%** | **8.28%** |
| **Class C Return Before Taxes** | **13.32%** | **8.96%** | **10.41%** |
| **Class J Return Before Taxes** | **14.32%** | **9.91%** | **11.14%** |
| **Institutional Class Return Before Taxes** | **15.60%** | **10.18%** | **11.47%** |
| **Class R-3 Return Before Taxes** | **14.95%** | **9.56%** | **10.85%** |
| **Class R-5 Return Before Taxes** | **15.29%** | **9.90%** | **11.19%** |
| Russell 1000 Index (reflects no deduction for fees, expenses, or taxes) | 17.37% | 13.59% | 14.59% |
| Russell 1000 Value Index (reflects no deduction for fees, expenses, or taxes) | 15.91% | 11.33% | 10.53% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

The Russell 1000 Index is the Fund's primary 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• Daniel R. Coleman (since 2010), Portfolio Manager

• Sarah E. Radecki (since 2021), Portfolio Manager

• Nedret Vidinli (since 2017), Associate Portfolio Manager

**Purchase and Sale of Fund Shares**

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| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A, C, and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A, C, and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A, C, and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, and R-5** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

Class C shares are subject to an 8-year automatic conversion plan whereby Class C shares held for eight years after purchase will automatically convert to Class A shares of the same Fund. See Purchase of Fund Shares for more information.

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**FINISTERRE EMERGING MARKETS TOTAL RETURN BOND FUND**

**Objective**

The Fund seeks to generate total returns from current income and capital appreciation.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment): None**

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | |
|:---|:---|
| | **Share Class** |
| | **Inst.** |
| Management Fees | 0.75% |
| Distribution and/or Service (12b-1) Fees | N/A |
| Other Expenses | 0.09% |
| Acquired Fund Fees and Expenses | 0.01% |
| **Total Annual Fund Operating Expenses** | **0.85%** |
| Expense Reimbursement <sup>(1)</sup> | 0.00% |
| **Total Annual Fund Operating Expenses after Expense Reimbursement** | **0.85%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.85% for Institutional Class shares. It is expected that the expense limit will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limit prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Institutional Class** | $87 | $271 | $471 | $1049 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 125.7% of the average value of its portfolio.

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in bonds that are tied economically to an emerging market, and in derivatives on such investments. Emerging markets are generally defined to include all countries except Australia, Austria, Belgium, Canada, Denmark, Finland, France, Germany, Ireland, Italy, Japan, Netherlands, New Zealand, Norway, Portugal, Spain, Sweden, Switzerland, United Kingdom, and the United States. The Fund also invests in fixed-income securities, including convertible bonds, credit- and index-linked securities, non-registered and restricted securities (including those issued in reliance on Rule 144A and Regulation S), securities issued by distressed or bankrupt issuers, and securities issued by the U.S government or U.S. government-sponsored enterprises. The Fund's strategies may result in the active and frequent trading of the Fund's portfolio securities.

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The Fund considers a security to be tied economically to an emerging market if one or more of the following criteria is present: (i) the issuer or guarantor of the security has its principal place of business or principal office in an emerging market; (ii) the principal trading market for the security is in an emerging market; (iv) the issuer or guarantor of the security derives a majority of its revenue from emerging markets; or (iv) the currency of settlement of the security is the currency of an emerging market. Emerging markets include frontier markets.

The Fund uses derivatives to enhance return and to hedge and manage investment risks. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. Specifically, the Fund uses forward contracts, futures, options, and swaps. The Fund invests in cash and cash equivalents to support certain of these investments, as well as for other purposes.

The Fund's investment process focuses primarily on market level analysis of global markets and political developments and their impact on individual countries and companies in emerging markets. The Fund uses a top-down portfolio construction process, blending both fundamental and technical considerations. The investment strategy provides considerable flexibility to invest in various asset classes, capital structures, maturities, and currencies.

The Fund invests, without limitation, in high yield securities (also known as "junk") rated at the time of purchase Ba1 or lower by Moody's Investors Services, Inc., and BB+ or lower by S&P Global Ratings ("S&P Global"). If the security has been rated by only one of the rating agencies, that rating will determine the security's rating; if the security is rated differently by the rating agencies, the highest rating will be used; and if the security has not been rated by either of the rating agencies, those selecting such investments will determine the security's quality. The Fund's holdings range in maturity from overnight to 30 years or more and are not subject to any minimum credit rating standard.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Convertible Securities Risk.** Convertible securities are securities that are convertible into common stock. Convertible securities are subject to credit and interest rate risks associated with fixed-income securities and to stock market risk associated with equity securities.

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Currency Contracts.** Derivatives related to currency contracts involve the specific risk of government action that would restrict the ability of the Fund to deliver or receive currency.

• **Forward Contracts, Futures, and Swaps.** Forward contracts, futures, and swaps involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the forward contract, future, or swap; possible lack of a liquid secondary market for a forward contract, future, or swap and the resulting inability to close a forward contract, future, or swap when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Distressed Investments Risk.** A fund's investment in instruments involving loans, loan participations, bonds, notes, non-performing and sub-performing mortgage loans, many of which are not publicly traded, may involve a substantial degree of risk for the following reasons. These instruments may become illiquid and the prices of such instruments may be extremely volatile. Valuing such instruments may be difficult and a fund may lose all of its investment, or it may be required to accept cash or securities with a value less than the fund's original investment. Issuers of distressed securities are typically in a weak financial condition and may default, in which case the fund may lose its entire investment.

------

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

• **Defensive Strategy Risk.** Because emerging market debt markets are particularly susceptible to adverse market, economic, political, and other conditions, the Fund is more prone to take a defensive position and invest a significant portion of its assets in cash and cash equivalents in response to abnormal market conditions. In taking a large cash position, the Fund's performance may be adversely affected as the Fund may not be able to benefit from an upswing in the market. Further, the Fund may be unable to pursue or achieve its investment objective when employing such a defensive strategy.

• **Frontier Markets Risk.** Frontier markets are emerging markets, but generally have small economies or less mature capital markets than more developed emerging markets, and, as a result, the risks of investing in emerging markets are magnified in frontier markets. Frontier markets typically have low trading volumes and the potential for extreme price volatility and illiquidity.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Hedging Risk.** A fund that implements a hedging strategy using derivatives and/or securities could expose the fund to the risk that can arise when a change in the value of a hedge does not match a change in the value of the asset it hedges. In other words, the change in value of the hedge could move in a direction that does not match the change in value of the underlying asset, resulting in a risk of loss to the Fund.

**High Portfolio Turnover Risk.** High portfolio turnover (more than 100%) caused by active and frequent trading of portfolio securities may result in accelerating the realization of taxable gains and losses, lower fund performance, and increased brokerage costs.

**High Yield Securities Risk.** High yield fixed-income securities (commonly referred to as "junk bonds") are subject to greater credit quality risk than higher rated fixed-income securities and should be considered speculative.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

------

**U.S. Government-Sponsored Securities Risk.** Securities issued by U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. government.

**Volatility Mitigation Risk.** Volatility mitigation strategies may increase the Fund's transaction costs, which could increase losses or reduce gains. These strategies may not protect the Fund from market declines and may reduce the Fund's participation in market gains.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

Life of Fund returns are measured from the date the Fund's shares were first sold (July 11, 2016).

**Total Returns as of December 31**

![15959](ck0000898745-20260227_g7.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **9.76%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q2 2022** | **(11.00)%** |

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**Average Annual Total Returns**

**For the periods ended December 31, 2025**

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| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **Life of Fund** |
| **Institutional Class Return Before Taxes** | **16.04%** | **4.05%** | **5.61%** |
| **Institutional Class Return After Taxes on Distributions** | **13.29%** | **1.57%** | **3.19%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **9.49%** | **1.95%** | **3.23%** |
| Bloomberg Global Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 8.17% | (2.15)% | 0.39% |
| JPM EMBI Equal Weighted Index<sup>1</sup> (reflects no deduction for fees, expenses, or taxes) | 14.05% | 1.84% | N/A |
| Finisterre Emerging Markets Total Return Bond Blended Index (reflects no deduction for fees, expenses, or taxes) | 14.05% | 1.84% | 3.40% |
| &nbsp;&nbsp;&nbsp;JPM GBI-EM Global Diversified Index (reflects no deduction for fees, expenses, or taxes) | 19.26% | 1.12% | 2.61% |
| &nbsp;&nbsp;&nbsp;JPM EMBI Global Diversified Index (reflects no deduction for fees, expenses, or taxes) | 14.30% | 1.78% | 3.35% |
| &nbsp;&nbsp;&nbsp;JPM CEMBI Broad Diversified Index (reflects no deduction for fees, expenses, or taxes) | 8.73% | 2.48% | 4.09% |

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<sup>1</sup>The JPM EMBI Equal Weighted Index has an inception date of December 31, 2020. Accordingly, index performance is not available for periods prior to that date.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The Bloomberg Global Aggregate Index is the Fund's primary broad-based securities market index. Effective March 1, 2026, the Fund changed its secondary index to the JPM EMBI Equal Weighted Index because it more closely aligns with the Fund's investment approach. The JPM EMBI Equal Weighted 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. Prior to March 1, 2026, the Fund's secondary index was the Finisterre Emerging Markets Total Return Bond Blended Index. Performance of each component of the blended index is also shown. The weightings for the Finisterre Emerging Markets Total Return Bond Blended Index are: 33.33% JPM GBI-EM Global Diversified Index; 33.33% JPM EMBI Global Diversified Index; and 33.33% JPM CEMBI Broad Diversified Index.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• Damien Buchet (since 2016), Portfolio Manager

• Christopher Watson (since 2016), Portfolio Manager

**Purchase and Sale of Fund Shares**

For Institutional Class shares, there are no minimum initial or subsequent investment requirements for eligible purchasers.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

For retail investors (i.e. non-employer sponsored retirement plan investors), effective as of the close of the New York Stock Exchange on April 13, 2026, and for employer-sponsored retirement plan investors, effective as of the close of the New York Stock Exchange on June 12, 2026, the Finisterre Emerging Markets Total Return Bond Fund will no longer be available for purchases from new investors except in limited circumstances. See the section titled Purchase of Fund Shares in the Fund's Prospectus for additional information.

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

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**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

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**GLOBAL EMERGING MARKETS FUND**

**Objective**

The Fund seeks long-term growth of capital.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 5.50% |  |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% |  |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Management Fees | 0.95% | 0.95% | 0.95% | 0.95% | 0.95% | 0.95% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 0.15% | N/A | 0.25% | N/A | N/A |
| Other Expenses <sup>(1)</sup> | 0.25% | 0.25% | 0.22% | 0.36% | 0.30% | 0.05% |
| **Total Annual Fund Operating Expenses** | **1.45%** | **1.35%** | **1.17%** | **1.56%** | **1.25%** | **1.00%** |
| Expense Reimbursement <sup>(2)</sup> | 0.00% | (0.04)% | (0.06)% | N/A | N/A | N/A |
| **Total Annual Fund Operating Expenses after Expense Reimbursement** | **1.45%** | **1.31%** | **1.11%** | **1.56%** | **1.25%** | **1.00%** |

---

<sup>(1)</sup> Includes 0.01% of expenses associated with consulting fees. The expense is not subject to the contractual expense limit.

<sup>(2)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 1.45% for Class A, 1.30% for Class J and 1.10% for Institutional Class shares. It is expected that the expense limits will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

------

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $689 | $983 | $1299 | $2190 |
| **Class J** | 233 | 424 | 736 | 1620 |
| **Institutional Class** | 113 | 366 | 638 | 1415 |
| **Class R-3** | 159 | 493 | 850 | 1856 |
| **Class R-5** | 127 | 397 | 686 | 1511 |
| **Class R-6** | 102 | 318 | 552 | 1225 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $133 | $424 | $736 | $1620 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 32.3% of the average value of its portfolio.

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of emerging market companies. The Fund considers "emerging market" to mean any country that is not in the MSCI World Index. Generally, emerging markets include all countries except the United States, Canada, Japan, Australia, Singapore, New Zealand, and most nations located in Western Europe. The Fund also includes Mainland China and its administrative and other districts such as Hong Kong and Macau in its definition of "emerging market." The Fund considers a security to be tied economically to an emerging market if one or more of the following criteria is present: (i) the issuer or guarantor of the security has its principal place of business or principal office in an emerging market; (ii) the principal trading market for the security is in an emerging market; (iii) the issuer or guarantor of the security derives a majority of its revenue from emerging markets; or (iv) the currency of settlement of the security is the currency of an emerging market.

The Fund invests in equity securities regardless of market capitalization (small, medium, or large) and style (growth or value).

The Fund may invest in and have direct access to China A shares listed on the Shanghai Stock Connect program ("SSE") via the Shanghai-Hong Kong Stock Connect and Shenzhen Hong Kong Stock Connect Schemes.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

------

• **China Investment Risk.** The Fund invests a significant portion of its assets in securities of issuers located or operating in China and its administrative and other districts such as Hong Kong and Macau. Investing in China involves certain heightened risks and considerations, including, among others: frequent trading suspensions and government interventions (including by nationalizing assets); currency exchange rate fluctuations or blockages; limits on using brokers and on foreign ownership; different financial reporting standards; higher dependence on exports and international trade; political and social instability; infectious disease outbreaks; regional and global conflicts; increased trade tariffs, embargoes, and other trade limitations; custody and other risks associated with programs used to access Chinese securities; and uncertainties in tax rules that could result in unexpected tax liabilities for the Fund. Significant portions of the Chinese securities markets may become rapidly illiquid, as Chinese issuers have the ability to suspend the trading of their equity securities. Moreover, actions by the U.S. government, such as delisting of certain Chinese companies from U.S. securities exchanges or otherwise restricting their operations in the U.S., may negatively impact the value of such securities held by the Fund.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

------

For periods prior to the inception date of Class R-6 shares (November 22, 2016), the performance shown in the table for Class R-6 shares is that of the Fund's Class R-3 shares, adjusted to reflect the fees and expenses of Class R-6 shares. However, where the adjustment for fees and expenses results in performance for Class R-6 shares that is higher than the historical performance of the Class R-3 shares, the historical performance of the Class R-3 shares is used. These adjustments result in performance for such periods that is no higher than the historical performance of the Class R-3 shares.

During 2019, the Fund experienced a significant one-time gain of approximately $0.11/share as the result of a settlement in a litigation proceeding. If such gain had not been recognized, the total return amounts expressed herein would have been lower.

**Total Returns as of December 31**![12371](ck0000898745-20260227_g8.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **19.56%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(24.38)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years**<sup>(1)</sup> |
| **Class A Return Before Taxes** | **28.94%** | **3.51%** | **7.18%** |
| **Class A Return After Taxes on Distributions** | **28.16%** | **3.00%** | **6.82%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **17.50%** | **2.70%** | **5.85%** |
| **Class J Return Before Taxes** | **35.63%** | **4.87%** | **7.94%** |
| **Institutional Class Return Before Taxes** | **36.86%** | **5.06%** | **8.16%** |
| **Class R-3 Return Before Taxes** | **36.26%** | **4.55%** | **7.62%** |
| **Class R-5 Return Before Taxes** | **36.69%** | **4.87%** | **7.95%** |
| **Class R-6 Return Before Taxes** | **37.01%** | **5.16%** | **8.19%** |
| MSCI Emerging Markets Index NTR (reflects withholding taxes on foreign dividends, but no deduction for fees, expenses, or other taxes) | 33.57% | 4.20% | 8.42% |

---

<sup>(1)</sup> During 2019, the Fund experienced a significant one-time gain of approximately $0.11 per share as a result of a settlement in a litigation proceeding. If such gain had not been recognized, the total return amounts shown for periods that include the year ended December 31, 2019 would have been lower.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

------

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

*•* Daniel Graña (since 2025), Portfolio Manager

*•* John Paul Lech (since 2025), Portfolio Manager

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, R-5, and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchases. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**GLOBAL REAL ESTATE SECURITIES FUND**

**Objective**

The Fund seeks to generate a total return.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 5.50% |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | &nbsp;&nbsp;**A** | &nbsp;&nbsp;**Inst.** | &nbsp;&nbsp;**R-3** | &nbsp;&nbsp;**R-5** | &nbsp;&nbsp;**R-6** |
| Management Fees | 0.88% | 0.88% | 0.88% | 0.88% | 0.88% |
| Distribution and/or Service (12b-1) Fees | 0.25% | N/A | 0.25% | N/A | N/A |
| Other Expenses  | 0.23% | 0.13% | 0.33% | 0.27% | 0.02% |
| **Total Annual Fund Operating Expenses** | **1.36%** | **1.01%** | **1.46%** | **1.15%** | **0.90%** |
| Expense Reimbursement <sup>(1)</sup> | N/A | (0.07)% | N/A | N/A | N/A |
| **Total Annual Fund Operating Expenses after Expense Reimbursement** | **1.36%** | **0.94%** | **1.46%** | **1.15%** | **0.90%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.94% for Institutional Class shares. It is expected that the expense limit will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limit prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $681 | $957 | $1254 | $2095 |
| **Institutional Class** | 96 | 315 | 551 | 1230 |
| **Class R-3** | 149 | 462 | 797 | 1746 |
| **Class R-5** | 117 | 365 | 633 | 1398 |
| **Class R-6** | 92 | 287 | 498 | 1108 |

---

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**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 22.1% of the average value of its portfolio.

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of U.S. and non-U.S. companies principally engaged in the real estate industry. For the Fund's investment policies, a real estate company has at least 50% of its assets, income, or profits derived from products or services related to 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, such as building supply manufacturers, mortgage lenders, and mortgage servicing companies. The Fund invests in equity securities regardless of market capitalization (small, medium or large). The Fund invests in value equity securities and growth equity securities.

The Fund invests a significant percentage of its portfolio in REITs and foreign REIT-like entities. REITs are pooled investment vehicles that invest in income producing real estate, real estate related loans, or other types of real estate interests. REITs in the U.S. are corporations or business trusts that are permitted to eliminate corporate-level federal income taxes by meeting certain requirements of the Internal Revenue Code. Some foreign countries have adopted REIT structures that are very similar to those in the U.S. Similarities include pass-through tax treatment and portfolio diversification. Other countries have REIT structures that are significantly different than the structure in the U.S., while some countries have not adopted a REIT-like structure at all.

Under normal market conditions, the Fund holds investments tied economically to at least 3 countries and invests a percentage of its net assets in securities of foreign issuers equal to at least the lesser of 40% or the percentage foreign issuers in FTSE EPRA/NAREIT Developed Index minus 10%.

The Fund concentrates its investments (invest more than 25% of its net assets) in securities in the real estate industry.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

------

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Industry Concentration Risk.** A fund that concentrates investments in a particular industry or group of industries has greater exposure than other funds to market, economic, and other factors affecting that industry or group of industries.

• **Real Estate.** A fund concentrating in the real estate industry is subject to the risks associated with direct ownership of real estate, securities of companies in the real estate industry, and/or real estate investment trusts. These risks are explained more fully below in Real Estate Investment Trusts (REITs) Risk and Real Estate Securities Risk.

**Real Estate Investment Trusts ("REITs") Risk.** In addition to risks associated with investing in real estate securities, REITs are dependent upon management skills, are not diversified, and are subject to heavy cash flow dependency, risks of default by borrowers, and self-liquidation. Investment in REITs also involves risks similar to risks of investing in small market capitalization companies, such as limited financial resources, less frequent and limited volume trading, and may be subject to more abrupt or erratic price movements than larger company securities. A REIT could fail to qualify for tax-free pass-through of income under the Internal Revenue Code. Fund shareholders will indirectly bear their proportionate share of the expenses of REITs in which the fund invests.

**Real Estate Securities Risk.** Investing in real estate securities subjects the fund to the risks associated with the real estate market (which are similar to the risks associated with direct ownership in real estate), including declines in real estate values, loss due to casualty or condemnation, property taxes, interest rate changes, increased expenses, cash flow of underlying real estate assets, regulatory changes (including zoning, land use, and rents), and environmental problems, as well as to the risks related to the management skill and creditworthiness of the issuer.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Classes R-3 and R-5 shares (March 1, 2016), the performance shown in the table for these newer classes is that of the Fund's Institutional Class shares, adjusted to reflect the respective fees and expenses of each class. These adjustments result in performance for such periods that is no higher than the historical performance of the Institutional Class shares.

------

**Total Returns as of December 31**

![12662](ck0000898745-20260227_g9.jpg)

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| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q4 2023** | **15.65%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(25.65)%** |

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**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **1.14%** | **0.12%** | **2.78%** |
| **Class A Return After Taxes on Distributions** | **0.41%** | **(0.49)%** | **1.87%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **0.92%** | **(0.04)%** | **1.90%** |
| **Institutional Class Return Before Taxes** | **7.57%** | **1.66%** | **3.77%** |
| **Class R-3 Return Before Taxes** | **6.98%** | **1.12%** | **3.24%** |
| **Class R-5 Return Before Taxes** | **7.28%** | **1.45%** | **3.58%** |
| **Class R-6 Return Before Taxes** | **7.61%** | **1.70%** | **3.80%** |
| MSCI ACWI Index NTR (reflects withholding taxes on foreign dividends, but no deduction for fees, expenses, or other taxes) | 22.34% | 11.19% | 11.72% |
| FTSE EPRA NAREIT Developed Net Tax Index (reflects withholding taxes on foreign dividends, but no deduction for fees, expenses, or other taxes) | 9.58% | 2.76% | 3.25% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

The MSCI ACWI NR USD Index is the Fund's primary broad-based securities market index. The FTSE EPRA/NAREIT Developed Index NTR 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.

**Investment Advisor**

Principal Global Investors, LLC

**Sub-Advisor and Portfolio Managers**

Principal Real Estate Investors, LLC

• Simon Hedger (since 2007), Portfolio Manager

• Anthony Kenkel (since 2010), Portfolio Manager

• Kelly D. Rush (since 2007), Portfolio Manager

------

**Purchase and Sale of Fund Shares**

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| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A**  | Initial Investment | $1000<sup>(1)</sup> |
| **A and C** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A and C** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, R-5, and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**GOVERNMENT & HIGH QUALITY BOND FUND**

**Objective**

The Fund seeks to provide a high level of current income consistent with safety and liquidity.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** |
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 2.25% |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.49% | 0.49% | 0.49% | 0.49% | 0.49% |
| Distribution and/or Service (12b-1) Fees | 0.15% | 0.15% | N/A | 0.25% | N/A |
| Other Expenses | 0.16% | 0.23% | 0.09% | 0.33% | 0.27% |
| **Total Annual Fund Operating Expenses** | **0.80%** | **0.87%** | **0.58%** | **1.07%** | **0.76%** |
| Expense Reimbursement <sup>(1)</sup> | N/A | N/A | (0.05)% | (0.09)% | (0.09)% |
| **Total Annual Fund Operating Expenses after Expense Reimbursement** | **0.80%** | **0.87%** | **0.53%** | **0.98%** | **0.67%** |

---

<sup>(1)&nbsp;&nbsp;&nbsp;&nbsp;</sup>Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.53% for Institutional Class, 0.98% for Class R-3, and 0.67% for Class R-5 shares. It is expected that the expense limits will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $305 | $475 | $659 | $1193 |
| **Class J** | 189 | 278 | 482 | 1073 |
| **Institutional Class** | 54 | 181 | 319 | 721 |
| **Class R-3** | 100 | 331 | 581 | 1298 |
| **Class R-5** | 68 | 234 | 414 | 934 |

---

------

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $89 | $278 | $482 | $1073 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 268.0% of the average value of its portfolio.

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in bonds issued by the U.S. government, its agencies, or instrumentalities or bonds that are rated AAA by S&P Global Ratings ("S&P Global") or Aaa by Moody's Investors Service, Inc. ("Moody's"). Bonds include, but are not limited to, asset-backed securities ("ABS"), mortgage securities such as agency and non-agency collateralized mortgage obligations, and other obligations that are secured by mortgages or mortgage-backed securities ("MBS") (also referred to as securitized products). The Fund also invests in ABS and MBS that are rated lower than AAA by S&P Global or Aaa by Moody's (or of comparable quality), including collateralized mortgage obligations, and in other obligations that are secured by mortgages or MBS. The MBS in which the Fund invests include MBS trading in the to-be-announced ("TBA") markets. If a security has been rated by only one of the rating agencies, that rating will determine the security's rating; if the security is rated differently by the rating agencies, the highest rating will be used; and if the security has not been rated by either of the rating agencies, those selecting such investments will determine the security's quality.

Under normal circumstances, the Fund maintains an average portfolio duration that is within ±50% of the duration of the Bloomberg US Agency Fixed Rate MBS Index, which as of January 31, 2026 was 5.33 years. The Fund is not managed to a particular maturity. The Fund's strategies may result in the active and frequent trading of the Fund's portfolio securities.

The Fund invests in derivatives, including Treasury futures and securities delivered in TBA transactions, to manage the fixed-income exposure. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Futures.** Futures contracts involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the futures contract; possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**High Portfolio Turnover Risk.** High portfolio turnover (more than 100%) caused by active and frequent trading of portfolio securities may result in accelerating the realization of taxable gains and losses, lower fund performance, and increased brokerage costs.

------

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Real Estate Securities Risk.** Investing in real estate securities subjects the fund to the risks associated with the real estate market (which are similar to the risks associated with direct ownership in real estate), including declines in real estate values, loss due to casualty or condemnation, property taxes, interest rate changes, increased expenses, cash flow of underlying real estate assets, regulatory changes (including zoning, land use, and rents), and environmental problems, as well as to the risks related to the management skill and creditworthiness of the issuer.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Securitized Products Risk.** Investments in securitized products are subject to risks similar to traditional fixed-income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Unscheduled prepayments on securitized products may have to be reinvested at lower rates. A reduction in prepayments may increase the effective maturities of these securities, exposing them to the risk of decline in market value over time (extension risk). With respect to securities that are delivered in TBA transactions, there is a risk that the actual securities received by the Fund may be less favorable than what was anticipated when entering into the transaction.

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

**U.S. Government-Sponsored Securities Risk.** Securities issued by U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. government.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

------

**Total Returns as of December 31**![11564](ck0000898745-20260227_g10.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q4 2023** | **7.52%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q3 2022** | **(5.49)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **5.16%** | **(0.98)%** | **0.67%** |
| **Class A Return After Taxes on Distributions** | **3.67%** | **(1.91)%** | **(0.39)%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **3.03%** | **(1.14)%** | **0.05%** |
| **Class J Return Before Taxes** | **6.56%** | **(0.58)%** | **0.86%** |
| **Institutional Class Return Before Taxes** | **7.94%** | **(0.26)%** | **1.18%** |
| **Class R-3 Return Before Taxes** | **7.45%** | **(0.71)%** | **0.74%** |
| **Class R-5 Return Before Taxes** | **7.65%** | **(0.40)%** | **1.04%** |
| Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| Bloomberg US Agency Fixed Rate MBS Index (reflects no deduction for fees, expenses, or taxes) | 8.58% | 0.15% | 1.59% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

The Bloomberg US Aggregate Index is the Fund's primary 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• Bryan C. Davis (since 2019), Portfolio Manager

• Zach Gassmann (since 2019), Portfolio Manager

------

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, and R-5** | There are no minimum initial or subsequent investment requirements for eligible purchases. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**GOVERNMENT MONEY MARKET FUND**

**Objective**

The Fund seeks as high a level of current income as is considered consistent with preservation of principal and maintenance of liquidity.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**: **None**

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | |
|:---|:---|:---|
| | **Share Class** | **Share Class** |
| | **Inst.** | **R-6** |
| Management Fees | 0.15% | 0.15% |
| Distribution and/or Service (12b-1) Fees | N/A | N/A |
| Other Expenses | 0.06% | 0.01% |
| Acquired Fund Fees and Expenses | 0.01% | 0.01% |
| **Total Annual Fund Operating Expenses** | **0.22%** | **0.17%** |
| Fee Waiver and Expense Reimbursement <sup>(1)(2)</sup> | (0.02)% | (0.02)% |
| **Total Annual Operating Expenses after Fee Waiver and Expense Reimbursement** | **0.20%** | **0.15%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to waive a portion of the Fund's management fees through the period ending February 28, 2027. The fee waiver will reduce the Fund's management fees in an amount equal to all Acquired Fund Fees and Expenses. It is expected that the fee waiver will continue through the period disclosed; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the fee waiver prior to the end of the period.

<sup>(2)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.20% for Institutional Class Shares. In addition, for Class R-6, the expense limit will maintain "Other Expenses" (expressed as a percent of average net assets on an annualized basis) not to exceed 0.00%, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses). It is expected that the expense limits will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limit prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Institutional Class** | $20 | $69 | $122 | $278 |
| **Class R-6** | 15 | 53 | 94 | 215 |

---

------

**Principal Investment Strategies**

The Fund will invest at least 99.5% of its total assets in cash, government securities, and/or repurchase agreements that are collateralized fully by cash or government securities (government securities can include shares of other government money market funds). The Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in government securities and repurchase agreements that are collateralized by government securities. A government security is any security issued or guaranteed as to principal or interest by the United States, or by a person controlled or supervised by and acting as an instrumentality of the government of the United States pursuant to authority granted by the United States Congress; or any certificate of deposit for any of the foregoing. Specifically, the Fund will invest in U.S. treasury bills, bonds, and other obligations issued or guaranteed by the U.S. government or its agencies or instrumentalities (which will include instruments with variable or floating interest rates), as well as shares of other government money market funds. The Fund seeks to maintain a stable net asset value of $1.00 per share. The Fund maintains a dollar weighted average portfolio maturity of 60 days or less. As with all mutual funds, the value of the Fund's assets may rise or fall.

**Principal Risks**

You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. An investment in the Fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor is not required to reimburse the Fund for losses, and you should not expect that the sponsor will provide financial support to the Fund at any time, including during periods of market stress. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Floating and Variable Rate Securities Risk.** The market prices of securities with variable and floating interest rates are generally less sensitive to interest rate changes than are the market prices of securities of fixed interest rates. Floating and variable rate securities may decline in value if market interest rates or interest rates paid by them do not move as expected. Floating and variable rate securities may be subject to greater liquidity risk than other debt securities, meaning that there may be limitations on the Fund's ability to sell the securities at any given time.

**Investment Company Securities Risk.** A fund that invests in another investment company (for example, another fund or an exchange-traded fund (or ETF)) is subject to the risks associated with direct ownership of the securities in which such investment company invests. Fund shareholders indirectly bear their proportionate share of the expenses of each such investment company.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Repurchase Agreement Risk.** If the other party to a repurchase agreement defaults on its obligation under the agreement, the Fund may suffer delays and incur costs or lose money in exercising its rights under the agreement. If the seller fails to repurchase the security and the market value of the security declines, the Fund may lose money.

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

**U.S. Government-Sponsored Securities Risk.** Securities issued by U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. government.

------

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Class R-6 shares (December 12, 2022), the performance shown in the table for Class R-6 shares is that of the Fund's Institutional Class shares.

Life of Fund returns are measured from the date the Fund's shares were first sold (December 20, 2017).

**Total Returns as of December 31**

![9371](ck0000898745-20260227_g11.jpg)`

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| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q4 2023** | **1.32%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2022** | **0.00%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **Life of Fund** |
| **Institutional Class Return Before Taxes** | **4.13%** | **3.11%** | **2.45%** |
| **Class R-6 Return Before Taxes** | **4.18%** | **3.15%** | **2.47%** |
| Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 1.81% |
| Bloomberg US Treasury Bellwethers 3 Month Index (reflects no deduction for fees, expenses, or taxes) | 4.23% | 3.23% | 2.62% |

---

The Bloomberg US Aggregate Bond Index is the Fund's primary broad-based securities market index. The Bloomberg U.S. Treasury Bellwethers 3 Month 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• Allison Hitchings (since 2023), Portfolio Manager

• Tracy Reeg (since 2017), Portfolio Manager

------

**Purchase and Sale of Fund Shares**

For Institutional Class and Class R-6 shares, there are no minimum initial or subsequent investment requirements for eligible purchasers.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**HIGH YIELD FUND**

**Objective**

The Fund seeks to provide a high level of current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **Inst.** | **R-6** |
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 3.75% |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **Inst.** | **R-6** |
| Management Fees  | 0.50% | 0.50% | 0.50% | 0.50% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 1.00% | N/A | N/A |
| Other Expenses  | 0.14% | 0.18% | 0.11% | 0.01% |
| Acquired Fund Fees and Expenses | 0.01% | 0.01% | 0.01% | 0.01% |
| **Total Annual Fund Operating Expenses** | **0.90%** | **1.69%** | **0.62%** | **0.52%** |
| Expense Reimbursement <sup>(1)</sup>  | N/A | N/A | (0.01)% | N/A |
| **Total Annual Fund Operating Expenses after Expense Reimbursement** | **0.90%** | **1.69%** | **0.61%** | **0.52%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expense and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.60% for Institutional Class shares. It is expected that the expense limit will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limit prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example assumes conversion of the Class C shares to Class A shares after the eighth year. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $463 | $651 | $855 | $1441 |
| **Class C** | 272 | 533 | 918 | 1788 |
| **Institutional Class** | 62 | 198 | 345 | 773 |
| **Class R-6** | 53 | 167 | 291 | 653 |

---

------

With respect to Class C shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class C** | $172 | $533 | $918 | $1788 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 40.3% of the average value of its portfolio.

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in below investment grade bonds and bank loans (sometimes called "high yield" or "junk"), which are rated Ba1 or lower by Moody's Investors Service, Inc. ("Moody's") and BB+ or lower by S&P Global Ratings ("S&P Global"). If the bond or bank loan has been rated by only one of the rating agencies, that rating will determine the rating of the bond or bank loan; if the bond or bank loan is rated differently by the rating agencies, the highest rating will be used; and if the bond or bank loan has not been rated by either of those agencies, those selecting such investments will determine the quality of the bond or bank loan. The Fund also invests in investment grade bank loans (also known as senior floating rate interests) and securities of foreign issuers. Under normal circumstances, the Fund maintains an average portfolio duration that is within ±20% of the duration of the Bloomberg U.S. Corporate High Yield 2% Issuer Capped Index, which as of January 31, 2026 was 2.91 years. The Fund is not managed to a particular maturity.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Bank Loans Risk.** Changes in economic conditions are likely to cause issuers of bank loans (also known as senior floating rate interests) to be unable to meet their obligations. In addition, the value of the collateral securing the loan (if any) may decline, causing a loan to be substantially unsecured. Underlying credit agreements governing the bank loans, reliance on market makers, priority of repayment, and overall market volatility may harm the liquidity of loans.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**High Yield Securities Risk.** High yield fixed-income securities (commonly referred to as "junk bonds") are subject to greater credit quality risk than higher rated fixed-income securities and should be considered speculative.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

------

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Class R-6 shares (November 22, 2016), the performance shown in the table for Class R-6 shares is that of the Fund's Class A shares, adjusted to reflect the fees and expenses of Class R-6 shares. However, where the adjustment for fees and expenses results in performance for Class R-6 shares that is higher than the historical performance of the Class A shares, the historical performance of the Class A shares is used (without respect to sales charges, which are not applicable to Class R-6). These adjustments result in performance for such periods that is no higher than the historical performance of the Class A shares.

**Total Returns as of December 31**

![9659](ck0000898745-20260227_g12.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **8.73%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(12.01)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **2.71%** | **3.56%** | **5.34%** |
| **Class A Return After Taxes on Distributions** | **0.08%** | **1.20%** | **2.97%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **1.59%** | **1.67%** | **3.05%** |
| **Class C Return Before Taxes** | **4.85%** | **3.53%** | **5.12%** |
| **Institutional Class Return Before Taxes** | **7.03%** | **4.64%** | **6.08%** |
| **Class R-6 Return Before Taxes** | **7.13%** | **4.73%** | **6.12%** |
| Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| Bloomberg US Corporate High Yield 2% Issuer Capped Index (reflects no deduction for fees, expenses, or taxes) | 8.62% | 4.50% | 6.52% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

------

The Bloomberg US Aggregate Bond Index is the Fund's primary broad-based securities market index. The Bloomberg U.S. Corporate High Yield 2% Issuer Capped 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• Mark P. Denkinger (since 2009), Portfolio Manager

• Joshua Rank (since 2015), Portfolio Manager

• Darrin E. Smith (since 2009), Portfolio Manager

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A and C** | Initial Investment | $1000<sup>(1)</sup> |
| **A and C** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A and C** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchases. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

Class C shares are subject to an 8-year automatic conversion plan whereby Class C shares held for eight years after purchase will automatically convert to Class A shares of the same Fund. See Purchase of Fund Shares for more information.

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**INFLATION PROTECTION FUND**

**Objective**

The Fund seeks to provide current income and real (after inflation) total returns.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-3** | **R-5** |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |  |

---

**Annual Fund Operating Expenses**

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-3** | **R-5** |
| Management Fees<sup>(1)</sup> | 0.10% | 0.10% | 0.10% | 0.10% |
| Distribution and/or Service (12b-1) Fees | 0.15% | N/A | 0.25% | N/A |
| Other Expenses | 0.27% | 0.01% | 0.33% | 0.27% |
| **Total Annual Fund Operating Expenses** | **0.52%** | **0.11%** | **0.68%** | **0.37%** |

---

<sup>(1)</sup> Fees have been restated to reflect current fees.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $153 | $167 | $291 | $653 |
| **Institutional Class** | 11 | 35 | 62 | 141 |
| **Class R-3** | 69 | 218 | 379 | 847 |
| **Class R-5** | 38 | 119 | 208 | 468 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $53 | $167 | $291 | $653 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 155.4% of the average value of its portfolio.

------

**Principal Investment Strategies**

The Fund invests primarily in inflation-indexed bonds of varying maturities issued by the U.S. government. In managing the Fund, Principal Global Investors, LLC ("PGI"), the Fund's investment advisor uses a sampling strategy designed to track the Bloomberg U.S. TIPS Index (the "Index"). The index is composed of investment grade U.S. treasury inflation-protected securities ("TIPS"). As of January 31, 2026, the Index was composed of 47 issues. The Index is rebalanced monthly to reflect securities that have dropped out of or entered the Index in the preceding month. Generally, the Fund makes corresponding changes to its portfolio shortly after Index changes are made public. The Fund typically does not purchase all of the securities in the Index. Under normal circumstances, the Fund maintains an average portfolio duration that is in line with the duration of the Index, which as of January 31, 2026, was 6.48 years. The Fund's strategies may result in the active and frequent trading of the Fund's portfolio securities.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**High Portfolio Turnover Risk.** High portfolio turnover (more than 100%) caused by active and frequent trading of portfolio securities may result in accelerating the realization of taxable gains and losses, lower fund performance, and increased brokerage costs.

**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

------

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

Prior to March 1, 2026, the strategy of the Fund differed from its current strategy. Accordingly, performance of the Fund for periods prior to March 1, 2026, may not be representative of the performance the Fund would have achieved had the Fund been following its current strategy.

**Total Returns as of December 31**

![9192](ck0000898745-20260227_g13.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **4.72%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q2 2022** | **(6.33)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **6.64%** | **0.77%** | **2.72%** |
| **Institutional Class Return After Taxes on Distributions** | **4.69%** | **(1.14)%** | **1.36%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **3.93%** | **(0.18)%** | **1.53%** |
| **Class J Return Before Taxes** | **5.22%** | **0.39%** | **2.17%** |
| **Class R-3 Return Before Taxes** | **6.08%** | **0.22%** | **2.15%** |
| **Class R-5 Return Before Taxes** | **6.38%** | **0.53%** | **2.46%** |
| Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| Bloomberg US Treasury TIPS Index (reflects no deduction for fees, expenses, or taxes) | 7.01% | 1.12% | 3.09% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The Bloomberg US Aggregate Index is the Fund's primary broad-based securities market index. The Bloomberg US Treasury TIPS 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• Jeff Callahan (since 2026), Portfolio Manager

• Zach Gassmann (since 2026), Portfolio Manager

------

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **J** | Initial Investment | $1000<sup>(1)</sup> |
| **J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, and R-5** | There are no minimum initial or subsequent investment requirements for eligible purchases. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**INTERNATIONAL BOND FUND** 

**Objective**

The Fund seeks to provide current income and capital appreciation.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment): None**

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | |
|:---|:---|
| | **Share Class** |
| | **R-6** |
| Management Fees | 0.48% |
| Distribution and/or Service (12b-1) Fees | N/A |
| Other Expenses<sup>(1)</sup> | 0.05% |
| **Total Annual Fund Operating Expenses** | **0.53%** |
| Expense Reimbursement<sup>(2)</sup> | (0.01)% |
| **Total Annual Fund Operating Expenses after Expense Reimbursement** | 0.52% |

---

<sup>(1)</sup> Based on estimated expenses for the current fiscal year.

<sup>(2)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain "Other Expenses" (expressed as a percent of average net assets on an annualized basis) not to exceed 0.04% for Class R-6 shares. It is expected that the expense limit will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limit prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | |
|:---|:---|:---|
| | **1 year** | **3 years** |
| **Class R-6** | $53 | $169 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. This Fund is new and does not have a portfolio turnover rate to disclose.

------

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in bonds. For purposes of the Fund's 80% policy, bonds include derivative instruments or other instruments that have economic characteristics similar to bonds. The Fund invests primarily in non-U.S. dollar-denominated, investment grade bonds of issuers of developed and emerging markets, including China. Bonds include debt obligations of any maturity, such as bonds, notes, bills, and debentures and may be denominated and issued in the local currency or another currency. The Fund's assets are invested in issuers located in at least three countries (excluding the United States) and combined exposure to foreign securities, foreign currencies, and other foreign investments equal to at least 40% of the Fund's net assets. Investment grade bonds are rated BBB- or higher by S&P Global Ratings ("S&P Global") or Baa3 by Moody's Investor Service, Inc. ("Moody's"), at the time of purchase. If the security has been rated by only one of the rating agencies, that rating will determine the security's rating; if the security is rated differently by the rating agencies, the highest rating will be used; and if the security has not been rated by either of the rating agencies, those selecting such investments will determine the security's quality.

The Fund is not managed to a particular maturity. Under normal circumstances, the Fund maintains an average portfolio duration that is within ±20% of the duration of the Bloomberg Global Aggregate ex USD Index, which as of January 31, 2026 was 6.69 years . The Fund's strategies may result in the active and frequent trading of the Fund's portfolio securities.

The Fund invests in derivatives, including credit default swaps, currency contracts, forwards contracts, and interest rate swaps for currency hedging purposes. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

**• Credit Default Swaps.** Credit default swaps involve special risks in addition to those associated with swaps generally because they are difficult to value, are highly susceptible to liquidity and credit risk, and generally pay a return to the party that has paid the premium only in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial difficulty). The protection "buyer" in a credit default contract may be obligated to pay the protection "seller" an up-front payment or a periodic stream of payments over the term of the contract, provided, generally, that no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the buyer the "par value" (i.e., full notional value) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity described in the swap, or the seller may be required to deliver the related net cash amount, if the swap is cash settled. The Fund may be either the buyer or seller in the transaction.

• **Currency Contracts.** Derivatives related to currency contracts involve the specific risk of government action that would restrict the ability of the Fund to deliver or receive currency.

• **Forward Contracts, Futures, and Swaps.** Forward contracts, futures, and swaps involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the forward contract, future, or swap; possible lack of a liquid secondary market for a forward contract, future, or swap and the resulting inability to close a forward contract, future, or swap when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

------

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

• **China Investment Risk.** The Fund invests a significant portion of its assets in securities of issuers located or operating in China. Investing in China involves certain heightened risks and considerations, including, among others: frequent trading suspensions and government interventions (including by nationalizing assets); currency exchange rate fluctuations or blockages; limits on using brokers and on foreign ownership; different financial reporting standards; higher dependence on exports and international trade; political and social instability; infectious disease outbreaks; regional and global conflicts; increased trade tariffs, embargoes, and other trade limitations; custody and other risks associated with programs used to access Chinese securities; and uncertainties in tax rules that could result in unexpected tax liabilities for the Fund. Significant portions of the Chinese securities markets may become rapidly illiquid, as Chinese issuers have the ability to suspend the trading of their equity securities. Moreover, actions by the U.S. government, such as delisting of certain Chinese companies from U.S. securities exchanges or otherwise restricting their operations in the U.S., may negatively impact the value of such securities held by the Fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Frequent Trading Risk.** Active and frequent trading of portfolio assets may result in accelerating the realization of taxable gains and losses, lower Fund performance, and increased transaction costs.

**Hedging Risk.** A fund that implements a hedging strategy using derivatives and/or securities could expose the fund to the risk that can arise when a change in the value of a hedge does not match a change in the value of the asset it hedges. In other words, the change in value of the hedge could move in a direction that does not match the change in value of the underlying asset, resulting in a risk of loss to the Fund.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Sovereign Debt Risk.** Sovereign debt instruments are subject to the risk that a governmental entity may delay or refuse to pay interest or repay principal on its sovereign debt, due, for example, to cash flow problems, insufficient foreign currency reserves, political considerations, the relative size of the governmental entity's debt position in relation to the economy, or the failure to put in place economic reforms required by the International Monetary Fund or other multilateral agencies.

------

**Performance**

No performance information is shown because the Fund has not yet had a calendar year of performance. The performance is benchmarked against the Bloomberg Global Aggregate ex USD Index. Performance information provides an indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• Jeff Callahan (since 2026), Portfolio Manager

• Chee Sin Koh (since 2026), Portfolio Manager

**Purchase and Sale of Fund Shares**

For Class R-6 shares, there are no minimum initial or subsequent investment requirements for eligible purchasers.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**INTERNATIONAL EQUITY FUND**

**Objective**

The Fund seeks long-term growth of capital.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment): None**

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **Inst.** | **R-3** | **R-5** | **R-6** |
| Management Fees | 0.60% | 0.60% | 0.60% | 0.60% |
| Distribution and/or Service (12b-1) Fees | N/A | 0.25% | N/A | N/A |
| Other Expenses | 0.17% | 0.35% | 0.29% | 0.02% |
| **Total Annual Fund Operating Expenses** | **0.77%** | **1.20%** | **0.89%** | **0.62%** |
| Expense Reimbursement <sup>(1)</sup> | 0.00% | N/A | N/A | N/A |
| **Total Annual Fund Operating Expenses after Expense Reimbursement** | **0.77%** | **1.20%** | **0.89%** | **0.62%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.79% for Institutional Class shares. It is expected that the expense limit will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Institutional Class** | $79 | $246 | $428 | $954 |
| **Class R-3** | 122 | 381 | 660 | 1455 |
| **Class R-5** | 91 | 284 | 493 | 1096 |
| **Class R-6** | 63 | 199 | 346 | 774 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 96.3% of the average value of its portfolio.

------

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities. The Fund defines equity securities to include common stock, preferred stock, and exchange-traded funds (ETFs) and mutual funds that invest primarily in equity securities. The Fund invests primarily in foreign equity securities, including emerging market securities, such as China. The Fund typically invests in foreign securities of at least ten countries. The Fund invests in equity securities of small, medium, and large market capitalization companies.

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 growth equity securities, an investment strategy that emphasizes buying equity securities of companies whose potential for growth of capital and earnings is expected to be above average.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

• **China Investment Risk.** The Fund invests a significant portion of its assets in securities of issuers located or operating in China. Investing in China involves certain heightened risks and considerations, including, among others: frequent trading suspensions and government interventions (including by nationalizing assets); currency exchange rate fluctuations or blockages; limits on using brokers and on foreign ownership; different financial reporting standards; higher dependence on exports and international trade; political and social instability; infectious disease outbreaks; regional and global conflicts; increased trade tariffs, embargoes, and other trade limitations; custody and other risks associated with programs used to access Chinese securities; and uncertainties in tax rules that could result in unexpected tax liabilities for the Fund. Significant portions of the Chinese securities markets may become rapidly illiquid, as Chinese issuers have the ability to suspend the trading of their equity securities. Moreover, actions by the U.S. government, such as delisting of certain Chinese companies from U.S. securities exchanges or otherwise restricting their operations in the U.S., may negatively impact the value of such securities held by the Fund.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

------

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Class R-6 shares (November 22, 2016), the performance shown in the table for Class R-6 shares is that of the Fund's Institutional Class shares, adjusted to reflect the fees and expenses of Class R-6 shares. These adjustments result in performance for such periods that is no higher than the historical performance of the Institutional Class shares.

**Total Returns as of December 31**

![10639](ck0000898745-20260227_g14.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **22.05%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(22.85)%** |

---

------

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **35.45%** | **7.30%** | **8.03%** |
| **Institutional Class Return After Taxes on Distributions** | **33.96%** | **5.47%** | **6.73%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **21.51%** | **5.37%** | **6.29%** |
| **Class R-3 Return Before Taxes** | **34.77%** | **6.79%** | **7.50%** |
| **Class R-5 Return Before Taxes** | **35.19%** | **7.13%** | **7.84%** |
| **Class R-6 Return Before Taxes** | **35.63%** | **7.41%** | **8.10%** |
| MSCI ACWI Ex USA Index NTR (reflects withholding taxes on foreign dividends, but no deduction for fees, expenses, or other taxes) | 32.39% | 7.91% | 8.41% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• Paul H. Blankenhagen (since 2024), Portfolio Manager

• George P. Maris (since 2024), Portfolio Manager

• Matthew Peron (since 2025), Portfolio Manager

**Purchase and Sale of Fund Shares**

For Classes R-3, R-5, R-6, and Institutional Class shares, there are no minimum initial or subsequent investment requirements for eligible purchasers.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**LARGECAP GROWTH FUND I**

**Objective**

The Fund seeks long-term growth of capital.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 5.50% |  |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% |  |  |  |  |

---

**Annual Fund Operating Expenses**

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Management Fees | 0.60% | 0.60% | 0.60% | 0.60% | 0.60% | 0.60% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 0.15% | N/A | 0.25% | N/A | N/A |
| Other Expenses | 0.10% | 0.05% | 0.09% | 0.33% | 0.27% | 0.01% |
| **Total Annual Fund Operating Expenses** | **0.95%** | **0.80%** | **0.69%** | **1.18%** | **0.87%** | **0.61%** |
| Fee Waiver <sup>(1)</sup> | (0.02)% | (0.02)% | (0.02)% | (0.02)% | (0.02)% | (0.02)% |
| **Total Annual Fund Operating Expenses after Fee Waiver** | **0.93%** | **0.78%** | **0.67%** | **1.16%** | **0.85%** | **0.59%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to waive a portion of the Fund's management fees through the period ending February 28, 2027. The fee waiver will reduce the Fund's management fees by 0.016% (expressed as a percent of average net assets on an annualized basis). It is expected that the fee waiver will continue through the period disclosed; however, Principal Funds, Inc. and PGI, the parties to the agreement may mutually agree to terminate the fee waiver prior to the end of the period.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $640 | $834 | $1045 | $1651 |
| **Class J** | 180 | 253 | 442 | 988 |
| **Institutional Class** | 68 | 219 | 382 | 857 |
| **Class R-3** | 118 | 373 | 647 | 1430 |
| **Class R-5** | 87 | 276 | 480 | 1071 |
| **Class R-6** | 60 | 193 | 338 | 760 |

---

------

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $80 | $253 | $442 | $988 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 34.7% of the average value of its portfolio.

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in growth equity securities of companies with large market capitalizations. For this Fund, large market capitalization growth equity securities are securities (i) with market capitalizations within the range of companies comprising the Russell 1000<sup>®</sup> Index (as of January 30, 2026, this was between approximately $1.2 billion and $4.7 trillion), and (ii) that are included within at least one of the following growth indices: the MSCI All Country World IMI Growth Index, the S&P 1500 Growth Index, or the Russell 3000 Growth Index. The Fund also invests in equity securities of companies with medium market capitalizations.

The Fund is primarily actively managed by the sub-advisors. In addition, Principal Global Investors, LLC 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.

The Fund is considered non-diversified, which means it can invest a higher percentage of assets in securities of individual issuers than a diversified fund. As a result, changes in the value of a single investment could cause greater fluctuations in the Fund's share price than would occur in a more diversified fund.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

**Non-Diversification Risk.** A non-diversified fund may invest a high percentage of its assets in the securities of a small number of issuers and is more likely than diversified funds to be significantly affected by a specific security's poor performance.

**Passive Strategy Risk.** A portion of the Fund seeks to match the performance of a specified index. However, the correlation between the performance of this portion of the Fund and index performance may be affected by many factors, such as Fund expenses, the timing of cash flows into and out of the Fund, changes in securities markets, and changes in the composition of the index.

------

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

**Total Returns as of December 31**

![11201](ck0000898745-20260227_g15.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **27.72%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q2 2022** | **(21.61)%** |

---

------

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **5.02%** | **7.92%** | **13.91%** |
| **Class A Return After Taxes on Distributions** | **1.20%** | **4.31%** | **10.89%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **5.17%** | **5.65%** | **10.84%** |
| **Class J Return Before Taxes** | **10.44%** | **9.33%** | **14.80%** |
| **Institutional Class Return Before Taxes** | **11.41%** | **9.45%** | **14.96%** |
| **Class R-3 Return Before Taxes** | **10.86%** | **8.92%** | **14.39%** |
| **Class R-5 Return Before Taxes** | **11.23%** | **9.27%** | **14.76%** |
| **Class R-6 Return Before Taxes** | **11.48%** | **9.54%** | **15.04%** |
| Russell 1000 Index (reflects no deduction for fees, expenses, or taxes) | 17.37% | 13.59% | 14.59% |
| Russell 1000 Growth Index (reflects no deduction for fees, expenses, or taxes) | 18.56% | 15.32% | 18.13% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

The Russell 1000 Index is the Fund's primary 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2009), Portfolio Manager

• Michael Messina (since 2025), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

**Sub-Advisors**

Brown Advisory, LLC

T. Rowe Price Associates, Inc.

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, R-5, and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchases. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**LARGECAP S&P 500 INDEX FUND**

**Objective**

The Fund seeks long-term growth of capital.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class**  | **Share Class**  | **Share Class**  | **Share Class**  | **Share Class**  |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** |
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 1.50% |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 0.25% | 1.00% |  |  |  |

---

**Annual Fund Operating Expenses**

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class**  | **Share Class**  | **Share Class**  | **Share Class**  | **Share Class**  |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.08% | 0.08% | 0.08% | 0.08% | 0.08% |
| Distribution and/or Service (12b-1) Fees | 0.15% | 0.15% | N/A | 0.25% | N/A |
| Other Expenses | 0.08% | 0.04% | 0.02% | 0.33% | 0.27% |
| **Total Annual Fund Operating Expenses** | **0.31%** | **0.27%** | **0.10%** | **0.66%** | **0.35%** |

---

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $181 | $248 | $322 | $537 |
| **Class J** | 128 | 87 | 152 | 343 |
| **Institutional Class** | 10 | 32 | 56 | 128 |
| **Class R-3** | 67 | 211 | 368 | 822 |
| **Class R-5** | 36 | 113 | 197 | 443 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $28 | $87 | $152 | $343 |

---

------

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 4.2% of the average value of its portfolio.

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies that compose the Standard & Poor's<sup>®</sup> ("S&P") 500 Index (the "Index"). The Index is designed to represent U.S. equities with risk/return characteristics of the large cap universe. As of January 30, 2026, the market capitalization range of the companies comprising the Index was between approximately $5.8 billion and $4.6 trillion. Each component stock of the Index is weighted in proportion to its total market value. The Index is rebalanced quarterly.

The Fund employs a passive investment approach designed to attempt to track the performance of the Index. In seeking its objective, the Fund typically employs a replication strategy, which involves investing in all the securities that make up the Index, in the same proportions as the Index.

The Fund will not concentrate (i.e., invest more than 25% of its assets) its investments in a particular industry except to the extent the Index is so concentrated. As of January 31, 2026, the Index was not concentrated in any industry. The Fund may operate as a non-diversified fund, as defined under the Investment Company Act of 1940 ("1940 Act"), to the approximate extent the Index is non-diversified. The Fund may, therefore, operate as non-diversified solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the Index. A non-diversified fund can invest a higher percentage of assets in securities of individual issuers than a diversified fund. As a result, changes in the value of a single investment could cause greater fluctuations in the share price of a non-diversified fund than would occur in a more diversified fund.

**Note:&nbsp;&nbsp;&nbsp;&nbsp;**"Standard & Poor's 500<sup>®</sup>" and "S&P 500<sup>®</sup>" are trademarks of S&P Global and have been licensed by Principal. The Fund is not sponsored, endorsed, sold, or promoted by S&P Global, and S&P Global makes no representation regarding the advisability of investing in the Fund.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Industry Concentration Risk.** A fund that concentrates investments in a particular industry or group of industries has greater exposure than other funds to market, economic, and other factors affecting that industry or group of industries.

**Non-Diversification Risk**. From time to time, the Fund may operate as a non-diversified fund under the 1940 Act, solely as a result of a change in relative market capitalization or index weighting of one or more constituents of the Fund's Index. A non-diversified fund may invest a high percentage of its assets in the securities of a small number of issuers and is more likely than diversified funds to be significantly affected by a specific security's poor performance.

------

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

**Total Returns as of December 31**

![11732](ck0000898745-20260227_g16.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **20.38%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(19.67)%** |

---

------

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **15.72%** | **13.62%** | **14.15%** |
| **Class A Return After Taxes on Distributions** | **14.96%** | **12.30%** | **12.76%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **9.82%** | **10.59%** | **11.40%** |
| **Class J Return Before Taxes** | **16.49%** | **14.03%** | **14.41%** |
| **Institutional Class Return Before Taxes** | **17.74%** | **14.23%** | **14.63%** |
| **Class R-3 Return Before Taxes** | **17.07%** | **13.60%** | **13.99%** |
| **Class R-5 Return Before Taxes** | **17.42%** | **13.96%** | **14.34%** |
| S&P 500 Index (reflects no deduction for fees, expenses, or taxes) | 17.88% | 14.42% | 14.82% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

***•*** Tyler O'Donnell (since 2023), Portfolio Manager

• Aaron J. Siebel (since 2018), Portfolio Manager

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, and R-5** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

Effective as of the close of the New York Stock Exchange on March 24, 2023, Class C shares will no longer be available for purchase except in limited circumstances. See Purchase of Fund Shares for more information.

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**LARGECAP VALUE FUND III**

**Objective**

The Fund seeks long-term growth of capital.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-3** | **R-5** |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-3** | **R-5** |
| Management Fees <sup>(1)</sup> | 0.68% | 0.68% | 0.68% | 0.68% |
| Distribution and/or Service (12b-1) Fees | 0.15% | N/A | 0.25% | N/A |
| Other Expenses | 0.11% | 0.02% | 0.33% | 0.27% |
| Acquired Fund Fees and Expenses | 0.01% | 0.01% | 0.01% | 0.01% |
| **Total Annual Fund Operating Expenses** | **0.95%** | **0.71%** | **1.27%** | **0.96%** |
| Fee Waiver <sup>(2)(3)</sup> | (0.03)% | (0.03)% | (0.03)% | (0.03)% |
| **Total Annual Fund Operating Expenses after Fee Waiver** | **0.92%** | **0.68%** | **1.24%** | **0.93%** |

---

<sup>(1)</sup> Fees have been restated to reflect current fees.

<sup>(2)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to waive a portion of the Fund's management fees through the period ending February 28, 2027. The fee waiver will reduce the Fund's management fees by 0.02% (expressed as a percent of average net assets on an annualized basis). It is expected that the fee waiver will continue through the period disclosed; however, Principal Funds, Inc. and PGI, the parties to the agreement may mutually agree to terminate the fee waiver prior to the end of the period.

<sup>(3)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to waive a portion of the Fund's management fees through the period ending February 28, 2027. The fee waiver will reduce the Fund's management fees by an amount equal to the Fund's acquired fund fees and expenses represented by the Fund's investment in a particular unaffiliated exchange-traded fund that pursues a pure value investment strategy. It is expected that the fee waiver will continue through the period disclosed; however, Principal Funds, Inc. and PGI, the parties to the agreement may mutually agree to terminate the fee waiver prior to the end of the period.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $194 | $300 | $523 | $1164 |
| **Institutional Class** | 69 | 224 | 392 | 880 |
| **Class R-3** | 126 | 400 | 694 | 1531 |
| **Class R-5** | 95 | 303 | 528 | 1175 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $94 | $300 | $523 | $1164 |

---

------

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 60.5% of the average value of its portfolio.

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in value companies with large market capitalizations. For this Fund, value companies with large market capitalizations are those (i) with market capitalizations within the range of companies comprising the Russell 1000<sup>®</sup> Index (as of January 30, 2026, this range was between approximately $1.2 billion and $4.7 trillion), and (ii) included within at least one of the following value indices: the MSCI All Country World IMI Value Index, the S&P 1500 Value Index, or the Russell 3000 Value Index. The Fund also invests in equity securities of companies with medium market capitalizations and in other investment companies (for example, an exchange-traded fund (ETF)).

The Fund is primarily actively managed by the sub-advisors. In addition, Principal Global Investors, LLC 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> Value Index.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Investment Company Securities Risk.** A fund that invests in another investment company (for example, another fund or an exchange-traded fund (or ETF)) is subject to the risks associated with direct ownership of the securities in which such investment company invests. Fund shareholders indirectly bear their proportionate share of the expenses of each such investment company.

**Passive Strategy Risk.** A portion of the Fund seeks to match the performance of a specified index. However, the correlation between the performance of this portion of the Fund and index performance may be affected by many factors, such as Fund expenses, the timing of cash flows into and out of the Fund, changes in securities markets, and changes in the composition of the index.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

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**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

**Total Returns as of December 31**![6998](ck0000898745-20260227_g17.jpg)

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| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q4 2020** | **16.32%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(26.91)%** |

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**Average Annual Total Returns**

**For the periods ended December 31, 2025**

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| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **10.91%** | **10.53%** | **10.36%** |
| **Institutional Class Return After Taxes on Distributions** | **6.10%** | **7.98%** | **8.31%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **9.73%** | **8.03%** | **8.07%** |
| **Class J Return Before Taxes** | **9.70%** | **10.23%** | **10.04%** |
| **Class R-3 Return Before Taxes** | **10.34%** | **9.91%** | **9.74%** |
| **Class R-5 Return Before Taxes** | **10.60%** | **10.25%** | **10.08%** |
| Russell 1000 Index (reflects no deduction for fees, expenses, or taxes) | 17.37% | 13.59% | 14.59% |
| Russell 1000 Value Index (reflects no deduction for fees, expenses, or taxes) | 15.91% | 11.33% | 10.53% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The Russell 1000 Index is the Fund's primary 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.

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**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2009), Portfolio Manager

• Michael Messina (since 2025), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

**Sub-Advisors**

Barrow, Hanley, Mewhinney & Strauss, LLC (doing business as Barrow Hanley Global Investors)

Westwood Management Corp.

**Purchase and Sale of Fund Shares**

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| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **J** | Initial Investment | $1000<sup>(1)</sup> |
| **J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, and R-5** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

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<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**MIDCAP FUND**

**Objective**

The Fund seeks long-term growth of capital.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 5.50% |  |  |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% | 1.00% |  |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Management Fees | 0.56% | 0.56% | 0.56% | 0.56% | 0.56% | 0.56% | 0.56% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 1.00% | 0.15% | N/A | 0.25% | N/A | N/A |
| Other Expenses | 0.09% | 0.15% | 0.05% | 0.11% | 0.32% | 0.26% | 0.01% |
| **Total Annual Fund Operating Expenses** | **0.90%** | **1.71%** | **0.76%** | **0.67%** | **1.13%** | **0.82%** | **0.57%** |

---

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example assumes conversion of the Class C shares to Class A shares after the eighth year. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $637 | $821 | $1021 | $1597 |
| **Class C** | 274 | 539 | 928 | 1804 |
| **Class J** | 178 | 243 | 422 | 942 |
| **Institutional Class** | 68 | 214 | 373 | 835 |
| **Class R-3** | 115 | 359 | 622 | 1375 |
| **Class R-5** | 84 | 262 | 455 | 1014 |
| **Class R-6** | 58 | 183 | 318 | 714 |

---

With respect to Classes C and J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class C** | $174 | $539 | $928 | $1804 |
| **Class J** | 78 | 243 | 422 | 942 |

---

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**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 13.7% of the average value of its portfolio.

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies with medium market capitalizations (MidCap). For this Fund, companies with medium market capitalizations (MidCap) are those with market capitalizations within the range of companies comprising the Russell MidCap<sup>®</sup> Index (as of January 30, 2026, this was between approximately $1.2 billion and $88.7 billion). The Fund also invests in foreign securities.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Class R-6 shares (November 22, 2016), the performance shown in the table for Class R-6 shares is that of the Fund's Class R-3 shares, adjusted to reflect the fees and expenses of Class R-6 shares. However, where the adjustment for fees and expenses results in performance for Class R-6 shares that is higher than the historical performance of the Class R-3 shares, the historical performance of the Class R-3 shares is used. These adjustments result in performance for such periods that is no higher than the historical performance of the Class R-3 shares.

------

**Total Returns as of December 31**

![7632](ck0000898745-20260227_g18.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **24.72%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(23.89)%** |

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**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **(4.24)%** | **6.62%** | **11.46%** |
| **Class A Return After Taxes on Distributions** | **(5.54)%** | **5.49%** | **10.28%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **(1.56)%** | **5.09%** | **9.22%** |
| **Class C Return Before Taxes** | **(0.43)%** | **6.98%** | **11.42%** |
| **Class J Return Before Taxes** | **0.51%** | **7.99%** | **12.27%** |
| **Institutional Class Return Before Taxes** | **1.56%** | **8.11%** | **12.40%** |
| **Class R-3 Return Before Taxes** | **1.09%** | **7.60%** | **11.87%** |
| **Class R-5 Return Before Taxes** | **1.44%** | **7.94%** | **12.22%** |
| **Class R-6 Return Before Taxes** | **1.65%** | **8.20%** | **12.43%** |
| Russell 3000 Index (reflects no deduction for fees, expenses, or taxes) | 17.15% | 13.15% | 14.29% |
| Russell MidCap Index (reflects no deduction for fees, expenses, or taxes) | 10.60% | 8.67% | 11.01% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

The Russell 3000 Index is the Fund's primary 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• K. William Nolin (since 2000), Portfolio Manager

• Tom Rozycki (since 2013), Portfolio Manager

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**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A, C, and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A, C, and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A, C, and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, R-5, and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

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<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

For retail investors (i.e., non-employer sponsored retirement plan investors), effective as of the close of the New York Stock Exchange on June 14, 2013, and for employer-sponsored retirement plan investors, effective as of the close of the New York Stock Exchange on August 15, 2013, the MidCap Fund is no longer available for purchases from new investors, except in limited circumstances.

Class C shares are subject to an 8-year automatic conversion plan whereby Class C shares held for eight years after purchase will automatically convert to Class A shares of the same Fund. See Purchase of Fund Shares for more information.

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**MIDCAP S&P 400 INDEX FUND**

**Objective**

The Fund seeks long-term growth of capital.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Maximum Deferred Sales Charge (Load)<br>(as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Management Fees | 0.15% | 0.15% | 0.15% | 0.15% | 0.15% |
| Distribution and/or Service (12b-1) Fees | 0.15% | N/A | 0.25% | N/A | N/A |
| Other Expenses | 0.08% | 0.10% | 0.33% | 0.27% | 0.01% |
| **Total Annual Fund Operating Expenses** | **0.38%** | **0.25%** | **0.73%** | **0.42%** | **0.16%** |

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**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $139 | $122 | $213 | $480 |
| **Institutional Class** | 26 | 80 | 141 | 318 |
| **Class R-3** | 75 | 233 | 406 | 906 |
| **Class R-5** | 43 | 135 | 235 | 530 |
| **Class R-6** | 16 | 52 | 90 | 205 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $39 | $122 | $213 | $480 |

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**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 16.2% of the average value of its portfolio.

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**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies that compose the Standard & Poor's ("S&P") MidCap 400 Index (the "Index"). The Index is designed to represent U.S. equities with risk/return characteristics of the mid cap universe. As of January 30, 2026, the market capitalization range of the companies comprising the Index was between approximately $1.8 billion and $35.5 billion. Each component stock of the Index is weighted in proportion to its total market value. The Index is rebalanced quarterly.

The Fund employs a passive investment approach designed to attempt to track the performance of the Index. In seeking its objective, the Fund typically employs a replication strategy, which involves investing in all the securities that make up the Index, in the same proportions as the Index.

The Fund will not concentrate (i.e., invest more than 25% of its assets) its investments in a particular industry except to the extent the Index is so concentrated. As of January 31, 2026, the Index was not concentrated in any industry.

**Note:&nbsp;&nbsp;&nbsp;&nbsp;**"Standard & Poor's MidCap 400" and "S&P MidCap 400" are trademarks of S&P Global and have been licensed by Principal. The Fund is not sponsored, endorsed, sold, or promoted by S&P Global, and S&P Global makes no representation regarding the advisability of investing in the Fund.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Industry Concentration Risk.** A fund that concentrates investments in a particular industry or group of industries has greater exposure than other funds to market, economic, and other factors affecting that industry or group of industries.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

------

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Class R-6 shares (November 22, 2016), the performance shown in the table for Class R-6 shares is that of the Fund's Class R-3 shares, adjusted to reflect the fees and expenses of Class R-6 shares. However, where the adjustment for fees and expenses results in performance for Class R-6 shares that is higher than the historical performance of the Class R-3 shares, the historical performance of the Class R-3 shares is used. These adjustments result in performance for such periods that is no higher than the historical performance of the Class R-3 shares.

**Total Returns as of December 31**![9969](ck0000898745-20260227_g19.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q4 2020** | **24.32%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(29.79)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **7.22%** | **8.84%** | **10.46%** |
| **Institutional Class Return After Taxes on Distributions** | **4.96%** | **6.61%** | **8.36%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **5.64%** | **6.58%** | **8.05%** |
| **Class J Return Before Taxes** | **6.09%** | **8.68%** | **10.26%** |
| **Class R-3 Return Before Taxes** | **6.72%** | **8.31%** | **9.91%** |
| **Class R-5 Return Before Taxes** | **7.07%** | **8.65%** | **10.25%** |
| **Class R-6 Return Before Taxes** | **7.31%** | **8.92%** | **10.47%** |
| S&P 1500 Index (reflects no deduction for fees, expenses, or taxes) | 17.02% | 13.96% | 14.46% |
| S&P MidCap 400 Index (reflects no deduction for fees, expenses, or taxes) | 7.50% | 9.12% | 10.72% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The S&P 1500 Index is the Fund's primary broad-based securities market index. The S&P MidCap 400 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.

------

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

***•*** Tyler O'Donnell (since 2023), Portfolio Manager

• Aaron J. Siebel (since 2018), Portfolio Manager

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **J** | Initial Investment | $1000<sup>(1)</sup> |
| **J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, R-5, and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchases. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**MIDCAP VALUE FUND I**

**Objective**

The Fund seeks long-term growth of capital.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 5.50% |  |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% |  |  |  |  |

---

**Annual Fund Operating Expenses**

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Management Fees | 0.65% | 0.65% | 0.65% | 0.65% | 0.65% | 0.65% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 0.15% | N/A | 0.25% | N/A | N/A |
| Other Expenses | 0.18% | 0.09% | 0.11% | 0.32% | 0.26% | 0.01% |
| **Total Annual Fund Operating Expenses** | **1.08%** | **0.89%** | **0.76%** | **1.22%** | **0.91%** | **0.66%** |
| Fee Waiver and Expense Reimbursement <sup>(1)(2)</sup> | (0.02)% | (0.02)% | (0.07)% | (0.02)% | (0.02)% | (0.02)% |
| **Total Annual Fund Operating Expenses after Fee Waiver and Expense Reimbursement** | **1.06%** | **0.87%** | **0.69%** | **1.20%** | **0.89%** | **0.64%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to waive a portion of the Fund's management fees through the period ending February 28, 2027. The fee waiver will reduce the Fund's management fees by 0.02% (expressed as a percent of average net assets on an annualized basis). It is expected that the fee waiver will continue through the period disclosed; however, Principal Funds, Inc. and PGI, the parties to the agreement may mutually agree to terminate the fee waiver prior to the end of the period.

<sup>(2)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.69% for Institutional Class shares. It is expected that the expense limit will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limit prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

------

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $652 | $873 | $1111 | $1793 |
| **Class J** | 189 | 282 | 491 | 1094 |
| **Institutional Class** | 70 | 236 | 415 | 936 |
| **Class R-3** | 122 | 385 | 668 | 1476 |
| **Class R-5** | 91 | 288 | 502 | 1118 |
| **Class R-6** | 65 | 209 | 366 | 821 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $89 | $282 | $491 | $1094 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 79.6% of the average value of its portfolio.

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of value companies with medium market capitalizations (MidCap). For this Fund, value companies with medium market capitalizations are (i) those with market capitalizations within the range of companies comprising the Russell MidCap<sup>®</sup> Index (as of January 30, 2026, this range was between approximately $1.2 billion and $88.7 billion), and (ii) included within at least one of the following value indices: the MSCI All Country World IMI Value Index, the S&P 1500 Value Index, or the Russell 3000 Value Index. The Fund invests in value equity securities, an investment strategy that emphasizes buying equity securities that appear to be undervalued.

The Fund is primarily actively managed by the sub-advisors. In addition, Principal Global Investors, LLC may invest up to 30% of the Fund's assets using an index sampling strategy designed to match the performance of the Russell MidCap<sup>®</sup> Value Index.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

------

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Classes A and R-6 shares (April 2, 2019), the performance shown in the table for these newer classes is that of the Fund's Institutional Class shares, adjusted to reflect the fees and expenses of the newer class. These adjustments result in performance for such periods that is no higher than the historical performance of the Institutional Class shares.

**Total Returns as of December 31**![10466](ck0000898745-20260227_g20.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **20.14%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(29.46)%** |

---

------

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **6.09%** | **10.23%** | **9.96%** |
| **Institutional Class Return After Taxes on Distributions** | **4.38%** | **7.67%** | **7.91%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **4.83%** | **7.64%** | **7.60%** |
| **Class A Return Before Taxes** | **(0.14)%** | **8.60%** | **8.94%** |
| **Class J Return Before Taxes** | **4.89%** | **10.05%** | **9.72%** |
| **Class R-3 Return Before Taxes** | **5.51%** | **9.70%** | **9.41%** |
| **Class R-5 Return Before Taxes** | **5.87%** | **10.04%** | **9.75%** |
| **Class R-6 Return Before Taxes** | **6.06%** | **10.30%** | **10.03%** |
| Russell 3000 Index (reflects no deduction for fees, expenses, or taxes) | 17.15% | 13.15% | 14.29% |
| Russell MidCap Value Index (reflects no deduction for fees, expenses, or taxes) | 11.05% | 9.83% | 9.78% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The Russell 3000 Index is the Fund's primary broad-based securities market index. The Russell MidCap 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2009), Portfolio Manager

• Michael Messina (since 2025), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

**Sub-Advisors**

Los Angeles Capital Management LLC

Victory Capital Management Inc.

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, R-5, and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchases. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**MONEY MARKET FUND**

**Objective**

The Fund seeks as high a level of current income as is considered consistent with preservation of principal and maintenance of liquidity.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

**Shareholder Fees (fees paid directly from your investment)**

---

| | | |
|:---|:---|:---|
| | **Share Class** | **Share Class** |
| | **A** | **J** |
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | |
|:---|:---|:---|
| | **Share Class** | **Share Class** |
| | **A** | **J** |
| Management Fees | 0.39% | 0.39% |
| Distribution and/or Service (12b-1) Fees | 0.00% | 0.15% |
| Other Expenses | 0.07% | 0.04% |
| Acquired Fund Fees and Expenses | 0.01% | 0.01% |
| **Total Annual Fund Operating Expenses** | **0.47%** | **0.59%** |
| Fee Waiver and Expense Reimbursement <sup>(1)(2)</sup> | 0.00% | (0.15)% |
| **Total Annual Fund Operating Expenses after Fee Waiver and Expense Reimbursement** | **0.47%** | **0.44%** |

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<sup>(1)</sup> Principal Funds Distributor, Inc. (the "Distributor") has contractually agreed to limit the Distribution Fees attributable to Class J. The waiver will reduce the Fund's Distribution Fees by 0.15%. It is expected that the fee waiver will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and the Distributor, the parties to the agreement, may mutually agree to terminate the fee waiver prior to the end of the period.

<sup>(2)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.50% for Class A shares. It is expected that the expense limit will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limit prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $148 | $151 | $263 | $591 |
| **Class J** | 145 | 174 | 314 | 724 |

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With respect to Classes A and J shares, you would pay the following expenses if you did not redeem your shares:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $48 | $151 | $263 | $591 |
| **Class J** | 45 | 174 | 314 | 724 |

---

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**Principal Investment Strategies**

The Fund seeks to maintain a stable net asset value of $1.00 per share by investing its assets in a portfolio of high quality, short-term money market instruments such as those issued by banks, corporations (U.S. and non-U.S.), municipalities, and the U.S. government. Such instruments include certificates of deposit, banker's acceptances, commercial paper, treasury bills, bonds, repurchase agreements, and shares of other money market funds. The Fund maintains a dollar-weighted average portfolio maturity of 60 days or less. As with all mutual funds, the value of the Fund's assets may rise or fall.

**Principal Risks**

You could lose money by investing in the Fund. Although the Fund seeks to preserve the value of your investment at $1.00 per share, it cannot guarantee it will do so. The Fund may impose a fee upon sale of your shares. An investment in the Fund is not a bank account and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The Fund's sponsor is not required to reimburse the Fund for losses, and you should not expect that the sponsor will provide financial support to the Fund at any time, including during periods of market stress. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Commercial Paper Risk.** The value of the Fund's investment in commercial paper, which is generally unsecured, is susceptible to changes in interest rates and the issuer's financial condition or credit quality. Commercial paper is usually repaid at maturity by the issuer from the proceeds of the issuance of new commercial paper. As a result, investments in commercial paper are subject to the risk that the issuer cannot issue enough new commercial paper to satisfy its outstanding obligations. In addition, under certain circumstances commercial paper may become illiquid or may suffer from reduced liquidity.

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

**Discretionary Liquidity Fee Risk**. The Fund may charge a liquidity fee of up to 2% of the value of shares redeemed if the Fund's Board of Directors (or PGI, in accordance with Board-approved guidelines) determines that doing so is in the best interests of the Fund. Accordingly, your redemptions from the Fund may be subject to a liquidity fee when you sell your shares at certain times.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Repurchase Agreement Risk.** If the other party to a repurchase agreement defaults on its obligation under the agreement, the Fund may suffer delays and incur costs or lose money in exercising its rights under the agreement. If the seller fails to repurchase the security and the market value of the security declines, the Fund may lose money.

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

**U.S. Government-Sponsored Securities Risk.** Securities issued by U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. government.

------

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

**Total Returns as of December 31**

![8185](ck0000898745-20260227_g21.jpg)`

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q4 2023** | **1.28%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q2 2022** | **0.00%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **3.98%** | **2.97%** | **1.93%** |
| **Class J Return Before Taxes** | **3.01%** | **3.00%** | **1.91%** |
| Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| Bloomberg US Treasury Bellwethers 3 Month Index (reflects no deduction for fees, expenses, or taxes) | 4.23% | 3.23% | 2.21% |

---

The Bloomberg US Aggregate Index is the Fund's primary broad-based securities market index. The Bloomberg U.S. Treasury Bellwethers 3 Month 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• Allison Hitchings (since 2023), Portfolio Manager

• Tracy Reeg (since 2004), Portfolio Manager

------

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

The Money Market Fund is operated as a retail money market fund, and as such, has adopted policies and procedures reasonably designed to limit all beneficial owners to natural persons. See Purchase of Fund Shares for additional information.

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**OVERSEAS FUND**

**Objective**

The Fund seeks long-term growth of capital.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment): None**

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | |
|:---|:---|:---|
| | **Share Class** | **Share Class** |
| | **Inst.** | **R-3** |
| Management Fees | 0.88% | 0.88% |
| Distribution and/or Service (12b-1) Fees | N/A | 0.25% |
| Other Expenses | 0.06% | 0.35% |
| **Total Annual Fund Operating Expenses** | **0.94%** | **1.48%** |
| Fee Waiver and Expense Reimbursement <sup>(1)(2)</sup> | (0.03)% | (0.02)% |
| **Total Annual Fund Operating Expenses after Fee Waiver and Expense Reimbursement** | **0.91%** | **1.46%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI") has contractually agreed to waive a portion of the Fund's management fees through the period ending February 28, 2027. The fee waiver will reduce the Fund's management fees by 0.02% (expressed as a percent of average net assets on an annualized basis). It is expected that the fee waiver will continue through the period disclosed; however, Principal Funds, Inc. and PGI, the parties to the agreement may mutually agree to terminate the fee waiver prior to the end of the period.

<sup>(2)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.91% for Institutional Class shares. It is expected that the expense limit will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limit prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Institutional Class** | $93 | $297 | $517 | $1152 |
| **Class R-3** | 149 | 466 | 806 | 1767 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 77.5% of the average value of its portfolio.

------

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities that are tied economically to countries outside the U.S. The Fund considers a security to be tied economically to countries outside the U.S. (a "foreign security") if one or more of the following criteria is present: (i) the issuer or guarantor of the security has its principal place of business or principal office outside the U.S.; (ii) the principal trading market for the security is a trading market outside the U.S.; (iii) the issuer or guarantor of the security derives a majority of its revenue from outside the U.S.; or (iv) the currency of settlement of the security is the currency of a country outside of the U.S.

The Fund invests in emerging market securities. The Fund invests in value equity securities, an investment strategy that emphasizes buying equity securities that appear to be undervalued. The Fund invests in equity securities of small, medium, and large market capitalization companies.

The Fund is primarily actively managed by the sub-advisors. In addition, Principal Global Investors, LLC may invest up to 30% of the Fund's assets using an index sampling strategy designed to match the performance of the MSCI EAFE Value Index.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies). The Schedule of Investments included in the Fund's annual and semi-annual reports identify the countries in which the Fund had invested, as of the date of the reports; to the extent a Fund has significant investments in issuers or securities tied to a certain country or region, it will be particularly susceptible to economic, political, regulatory or other events or conditions affecting such country or region.

**Passive Strategy Risk.** A portion of the Fund seeks to match the performance of a specified index. However, the correlation between the performance of this portion of the Fund and index performance may be affected by many factors, such as Fund expenses, the timing of cash flows into and out of the Fund, changes in securities markets, and changes in the composition of the index.

------

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

**Total Returns as of December 31**![9598](ck0000898745-20260227_g22.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q4 2020** | **23.03%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(31.40)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **40.11%** | **12.94%** | **9.25%** |
| **Institutional Class Return After Taxes on Distributions** | **36.83%** | **10.20%** | **7.52%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **25.60%** | **9.53%** | **7.07%** |
| **Class R-3 Return Before Taxes** | **39.31%** | **12.31%** | **8.64%** |
| MSCI EAFE Index NTR (reflects withholding taxes on foreign dividends, but no deduction for fees, expenses, or other taxes) | 31.22% | 8.92% | 8.18% |
| MSCI EAFE Value Index NTR (reflects withholding taxes on foreign dividends, but no deduction for fees, expenses, or other taxes) | 42.25% | 13.36% | 8.69% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

------

The MSCI EAFE Index is the Fund's primary broad-based securities market index. The MSCI EAFE 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2009), Portfolio Manager

• Michael Messina (since 2025), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

**Sub-Advisors**

Barrow, Hanley, Mewhinney & Strauss, LLC (doing business as Barrow Hanley Global Investors)

Causeway Capital Management LLC

**Purchase and Sale of Fund Shares**

For Classes R-3 and Institutional Class shares, there are no minimum initial or subsequent investment requirements for eligible purchasers.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**PRINCIPAL CAPITAL APPRECIATION FUND**

**Objective**

The Fund seeks to provide long-term growth of capital.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **Inst.** | **R-3** | **R-5** |
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 5.50% |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.41% | 0.41% | 0.41% | 0.41% |
| Distribution and/or Service (12b-1) Fees | 0.25% | N/A | 0.25% | N/A |
| Other Expenses | 0.07% | 0.04% | 0.33% | 0.27% |
| **Total Annual Fund Operating Expenses** | **0.73%** | **0.45%** | **0.99%** | **0.68%** |

---

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $620 | $771 | $934 | $1407 |
| **Institutional Class** | 46 | 144 | 252 | 567 |
| **Class R-3** | 101 | 315 | 547 | 1213 |
| **Class R-5** | 69 | 218 | 379 | 847 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 55.8% of the average value of its portfolio.

------

**Principal Investment Strategies**

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. Although there is no restriction on the size of the companies in which the Fund invests, most of the Fund's investments typically include companies with a market capitalization over $10 billion at the time of purchase. 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, and/or that have barriers to entry in their respective industries.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

------

**Total Returns as of December 31**![7544](ck0000898745-20260227_g23.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **19.69%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(19.46)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **6.97%** | **12.42%** | **13.54%** |
| **Class A Return After Taxes on Distributions** | **4.90%** | **11.11%** | **11.17%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **5.58%** | **9.70%** | **10.33%** |
| **Institutional Class Return Before Taxes** | **13.53%** | **14.04%** | **14.57%** |
| **Class R-3 Return Before Taxes** | **12.92%** | **13.42%** | **13.93%** |
| **Class R-5 Return Before Taxes** | **13.26%** | **13.77%** | **14.28%** |
| Russell 1000 Index (reflects no deduction for fees, expenses, or taxes) | 17.37% | 13.59% | 14.59% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• Daniel R. Coleman (since 2010), Portfolio Manager

• Theodore Jayne (since 2015), Portfolio Manager

------

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A** | Initial Investment | $1000<sup>(1)</sup> |
| **A** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, and R-5** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

Effective as of the close of the New York Stock Exchange on March 24, 2023, Class C shares will no longer be available for purchase except in limited circumstances. See Purchase of Fund Shares for more information.

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**PRINCIPAL LIFETIME STRATEGIC INCOME FUND**

**Objective**

The Fund seeks current income, and as a secondary objective, capital appreciation.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** |
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 3.75% |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 0.15% | N/A | 0.25% | N/A |
| Other Expenses | 0.13% | 0.03% | 0.02% | 0.33% | 0.27% |
| Acquired Fund Fees and Expenses | 0.46% | 0.46% | 0.46% | 0.46% | 0.46% |
| **Total Annual Fund Operating Expenses** | **0.84%** | **0.64%** | **0.48%** | **1.04%** | **0.73%** |
| Expense Reimbursement <sup>(1)</sup> | 0.00% | N/A | (0.02)% | N/A | N/A |
| **Total Annual Fund Operating Expenses after Expense Reimbursement** | **0.84%** | **0.64%** | **0.46%** | **1.04%** | **0.73%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.38% for Class A and 0.00% for Institutional Class shares. It is expected that the expense limits will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $458 | $633 | $823 | $1373 |
| **Class J** | 165 | 205 | 357 | 798 |
| **Institutional Class** | 47 | 152 | 267 | 602 |
| **Class R-3** | 106 | 331 | 574 | 1271 |
| **Class R-5** | 75 | 233 | 406 | 906 |

---

------

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $65 | $205 | $357 | $798 |

---

**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 24.4% of the average value of its portfolio.

**Principal Investment Strategies**

The Fund invests according to an asset allocation strategy designed for investors primarily seeking current income and secondarily 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 underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"). 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of large market capitalization companies, fixed-income securities, domestic and foreign securities, securities denominated in foreign currencies, investment companies, securitized products, U.S. government and U.S. government-sponsored securities, and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use futures, options, swaps (including, for example, credit default, interest rate, and currency swaps), and forwards in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

------

![PrincipalLifetimePortfolios_bw.jpg](ck0000898745-20260227_g24.jpg)

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

------

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Credit Default Swaps.** Credit default swaps involve special risks in addition to those associated with swaps generally because they are difficult to value, are highly susceptible to liquidity and credit risk, and generally pay a return to the party that has paid the premium only in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial difficulty). The protection "buyer" in a credit default contract may be obligated to pay the protection "seller" an up-front payment or a periodic stream of payments over the term of the contract, provided, generally, that no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the buyer the "par value" (i.e., full notional value) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity described in the swap, or the seller may be required to deliver the related net cash amount, if the swap is cash settled. The Fund may be either the buyer or seller in the transaction.

• **Forward Contracts, Futures, and Swaps.** Forward contracts, futures, and swaps involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the forward contract, future, or swap; possible lack of a liquid secondary market for a forward contract, future, or swap and the resulting inability to close a forward contract, future, or swap when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

------

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Securitized Products Risk.** Investments in securitized products are subject to risks similar to traditional fixed-income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Unscheduled prepayments on securitized products may have to be reinvested at lower rates. A reduction in prepayments may increase the effective maturities of these securities, exposing them to the risk of decline in market value over time (extension risk).

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

**U.S. Government-Sponsored Securities Risk.** Securities issued by U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. government.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

**Total Returns as of December 31**

![15916](ck0000898745-20260227_g25.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **8.31%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q2 2022** | **(8.45)%** |

---

------

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **5.96%** | **2.32%** | **4.21%** |
| **Class A Return After Taxes on Distributions** | **4.18%** | **0.81%** | **2.75%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **3.96%** | **1.32%** | **2.82%** |
| **Class J Return Before Taxes** | **9.35%** | **3.30%** | **4.79%** |
| **Institutional Class Return Before Taxes** | **10.47%** | **3.47%** | **4.98%** |
| **Class R-3 Return Before Taxes** | **9.84%** | **2.89%** | **4.40%** |
| **Class R-5 Return Before Taxes** | **10.30%** | **3.23%** | **4.73%** |
| Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| S&P Target Date Retirement Income Index (reflects no deduction for fees, expenses, or taxes) | 11.66% | 4.15% | 5.32% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

The Bloomberg US Aggregate Index is the Fund's primary 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2007), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, and R-5** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**PRINCIPAL LIFETIME 2015 FUND**

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment):&nbsp;&nbsp;&nbsp;&nbsp;None**

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | N/A | 0.25% | N/A |
| Other Expenses | 0.03% | 0.33% | 0.27% |
| Acquired Fund Fees and Expenses | 0.46% | 0.46% | 0.46% |
| **Total Annual Fund Operating Expenses** | **0.49%** | **1.04%** | **0.73%** |

---

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Institutional Class** | $50 | $157 | $274 | $616 |
| **Class R-3** | 106 | 331 | 574 | 1271 |
| **Class R-5** | 75 | 233 | 406 | 906 |

---

**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 27.3% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"). 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

------

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of large market capitalization companies, fixed-income securities, domestic and foreign securities, securities denominated in foreign currencies, investment companies, securitized products, U.S. government and U.S. government-sponsored securities, and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use futures, options, swaps (including, for example, credit default, interest rate, and currency swaps), and forwards in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Strategic Income Fund. At that time, the Fund may be combined with the Principal LifeTime Strategic Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

![PrincipalLifetimePortfolios_bw.jpg](ck0000898745-20260227_g24.jpg)

------

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Credit Default Swaps.** Credit default swaps involve special risks in addition to those associated with swaps generally because they are difficult to value, are highly susceptible to liquidity and credit risk, and generally pay a return to the party that has paid the premium only in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial difficulty). The protection "buyer" in a credit default contract may be obligated to pay the protection "seller" an up-front payment or a periodic stream of payments over the term of the contract, provided, generally, that no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the buyer the "par value" (i.e., full notional value) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity described in the swap, or the seller may be required to deliver the related net cash amount, if the swap is cash settled. The Fund may be either the buyer or seller in the transaction.

• **Forward Contracts, Futures, and Swaps.** Forward contracts, futures, and swaps involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the forward contract, future, or swap; possible lack of a liquid secondary market for a forward contract, future, or swap and the resulting inability to close a forward contract, future, or swap when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

------

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Securitized Products Risk.** Investments in securitized products are subject to risks similar to traditional fixed-income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Unscheduled prepayments on securitized products may have to be reinvested at lower rates. A reduction in prepayments may increase the effective maturities of these securities, exposing them to the risk of decline in market value over time (extension risk).

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

**U.S. Government-Sponsored Securities Risk.** Securities issued by U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. government.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

------

**Total Returns as of December 31**

![15200](ck0000898745-20260227_g26.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **11.02%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(9.54)%** |

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**Average Annual Total Returns**

**For the periods ended December 31, 2025**

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| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **10.59%** | **4.02%** | **6.07%** |
| **Institutional Class Return After Taxes on Distributions** | **7.14%** | **1.71%** | **3.81%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **7.71%** | **2.53%** | **4.19%** |
| **Class R-3 Return Before Taxes** | **9.96%** | **3.44%** | **5.49%** |
| **Class R-5 Return Before Taxes** | **10.31%** | **3.75%** | **5.81%** |
| Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| S&P Target Date 2015 Index (reflects no deduction for fees, expenses, or taxes) | 12.15% | 4.91% | 6.34% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The Bloomberg US Aggregate Index is the Fund's primary broad-based securities market index. The S&P Target Date 2015 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2008), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

------

**Purchase and Sale of Fund Shares**

For Classes R-3, R-5, and Institutional Class shares, there are no minimum initial or subsequent investment requirements for eligible purchasers.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**PRINCIPAL LIFETIME 2020 FUND**

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** |
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 3.75% |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 0.15% | N/A | 0.25% | N/A |
| Other Expenses | 0.08% | 0.02% | 0.01% | 0.32% | 0.26% |
| Acquired Fund Fees and Expenses | 0.47% | 0.47% | 0.47% | 0.47% | 0.47% |
| **Total Annual Fund Operating Expenses** | **0.80%** | **0.64%** | **0.48%** | **1.04%** | **0.73%** |

---

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $454 | $621 | $803 | $1328 |
| **Class J** | 165 | 205 | 357 | 798 |
| **Institutional Class** | 49 | 154 | 269 | 604 |
| **Class R-3** | 106 | 331 | 574 | 1271 |
| **Class R-5** | 75 | 233 | 406 | 906 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $65 | $205 | $357 | $798 |

---

------

**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 25.6% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"). 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of large market capitalization companies, fixed-income securities, domestic and foreign securities, securities denominated in foreign currencies, investment companies, U.S. government and U.S. government-sponsored securities, and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use futures, options, swaps (including, for example, credit default, interest rate, and currency swaps), and forwards in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Strategic Income Fund. At that time, the Fund may be combined with the Principal LifeTime Strategic Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

------

![PrincipalLifetimePortfolios_bw.jpg](ck0000898745-20260227_g24.jpg)

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

------

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Credit Default Swaps.** Credit default swaps involve special risks in addition to those associated with swaps generally because they are difficult to value, are highly susceptible to liquidity and credit risk, and generally pay a return to the party that has paid the premium only in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial difficulty). The protection "buyer" in a credit default contract may be obligated to pay the protection "seller" an up-front payment or a periodic stream of payments over the term of the contract, provided, generally, that no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the buyer the "par value" (i.e., full notional value) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity described in the swap, or the seller may be required to deliver the related net cash amount, if the swap is cash settled. The Fund may be either the buyer or seller in the transaction.

• **Forward Contracts, Futures, and Swaps.** Forward contracts, futures, and swaps involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the forward contract, future, or swap; possible lack of a liquid secondary market for a forward contract, future, or swap and the resulting inability to close a forward contract, future, or swap when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

------

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Securitized Products Risk.** Investments in securitized products are subject to risks similar to traditional fixed-income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Unscheduled prepayments on securitized products may have to be reinvested at lower rates. A reduction in prepayments may increase the effective maturities of these securities, exposing them to the risk of decline in market value over time (extension risk).

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

**U.S. Government-Sponsored Securities Risk.** Securities issued by U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. government.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

**Total Returns as of December 31**

![16016](ck0000898745-20260227_g27.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **12.29%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(11.66)%** |

---

------

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **6.77%** | **3.49%** | **5.96%** |
| **Class A Return After Taxes on Distributions** | **4.02%** | **1.30%** | **4.02%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **5.13%** | **2.18%** | **4.22%** |
| **Class J Return Before Taxes** | **10.15%** | **4.46%** | **6.57%** |
| **Institutional Class Return Before Taxes** | **11.31%** | **4.63%** | **6.74%** |
| **Class R-3 Return Before Taxes** | **10.63%** | **4.04%** | **6.13%** |
| **Class R-5 Return Before Taxes** | **11.00%** | **4.36%** | **6.47%** |
| Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| S&P Target Date 2020 Index (reflects no deduction for fees, expenses, or taxes) | 12.72% | 5.35% | 6.81% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

The Bloomberg US Aggregate Index is the Fund's primary 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2007), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, and R-5** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

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<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**PRINCIPAL LIFETIME 2025 FUND**

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment): None**

**Annual Fund Operating Expenses**

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | N/A | 0.25% | N/A |
| Other Expenses | 0.01% | 0.32% | 0.26% |
| Acquired Fund Fees and Expenses | 0.48% | 0.48% | 0.48% |
| **Total Annual Fund Operating Expenses** | **0.49%** | **1.05%** | **0.74%** |

---

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Institutional Class** | $50 | $157 | $274 | $616 |
| **Class R-3** | 107 | 334 | 579 | 1283 |
| **Class R-5** | 76 | 237 | 411 | 918 |

---

**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 30.0% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"). 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

------

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of large market capitalization companies, fixed-income securities, domestic and foreign securities, securities denominated in foreign currencies, investment companies, U.S. government and U.S. government-sponsored securities, and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use futures, options, swaps (including, for example, credit default, interest rate, and currency swaps), and forwards in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Strategic Income Fund. At that time, the Fund may be combined with the Principal LifeTime Strategic Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

![PrincipalLifetimePortfolios_bw.jpg](ck0000898745-20260227_g24.jpg)

------

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Credit Default Swaps.** Credit default swaps involve special risks in addition to those associated with swaps generally because they are difficult to value, are highly susceptible to liquidity and credit risk, and generally pay a return to the party that has paid the premium only in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial difficulty). The protection "buyer" in a credit default contract may be obligated to pay the protection "seller" an up-front payment or a periodic stream of payments over the term of the contract, provided, generally, that no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the buyer the "par value" (i.e., full notional value) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity described in the swap, or the seller may be required to deliver the related net cash amount, if the swap is cash settled. The Fund may be either the buyer or seller in the transaction.

• **Forward Contracts, Futures, and Swaps.** Forward contracts, futures, and swaps involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the forward contract, future, or swap; possible lack of a liquid secondary market for a forward contract, future, or swap and the resulting inability to close a forward contract, future, or swap when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

------

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Securitized Products Risk.** Investments in securitized products are subject to risks similar to traditional fixed-income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Unscheduled prepayments on securitized products may have to be reinvested at lower rates. A reduction in prepayments may increase the effective maturities of these securities, exposing them to the risk of decline in market value over time (extension risk).

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

**U.S. Government-Sponsored Securities Risk.** Securities issued by U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. government.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

------

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

**Total Returns as of December 31**

![15183](ck0000898745-20260227_g28.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **14.07%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(13.80)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **12.14%** | **5.27%** | **7.45%** |
| **Institutional Class Return After Taxes on Distributions** | **8.65%** | **3.08%** | **5.55%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **8.76%** | **3.56%** | **5.44%** |
| **Class R-3 Return Before Taxes** | **11.51%** | **4.68%** | **6.84%** |
| **Class R-5 Return Before Taxes** | **11.80%** | **4.99%** | **7.18%** |
| Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| S&P Target Date 2025 Index (reflects no deduction for fees, expenses, or taxes) | 13.98% | 6.07% | 7.57% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The Bloomberg US Aggregate Index is the Fund's primary broad-based securities market index. The S&P Target Date 2025 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2008), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

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**Purchase and Sale of Fund Shares**

For Classes R-3, R-5, and Institutional Class shares, there are no minimum initial or subsequent investment requirements for eligible purchasers.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**PRINCIPAL LIFETIME 2030 FUND**

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** |
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 3.75% |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 0.15% | N/A | 0.25% | N/A |
| Other Expenses | 0.07% | 0.02% | 0.01% | 0.32% | 0.26% |
| Acquired Fund Fees and Expenses | 0.50% | 0.50% | 0.50% | 0.50% | 0.50% |
| **Total Annual Fund Operating Expenses** | **0.82%** | **0.67%** | **0.51%** | **1.07%** | **0.76%** |

---

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $456 | $627 | $813 | $1350 |
| **Class J** | 168 | 214 | 373 | 835 |
| **Institutional Class** | 52 | 164 | 285 | 640 |
| **Class R-3** | 109 | 340 | 590 | 1306 |
| **Class R-5** | 78 | 243 | 422 | 942 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $68 | $214 | $373 | $835 |

---

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**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 32.1% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"). 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of large market capitalization companies, fixed-income securities, domestic and foreign securities, securities denominated in foreign currencies, investment companies (including index funds), U.S. government and U.S. government-sponsored securities, and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use futures, options, swaps (including, for example, credit default, interest rate, and currency swaps), and forwards in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Strategic Income Fund. At that time, the Fund may be combined with the Principal LifeTime Strategic Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

------

![PrincipalLifetimePortfolios_bw.jpg](ck0000898745-20260227_g24.jpg)

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

------

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Credit Default Swaps.** Credit default swaps involve special risks in addition to those associated with swaps generally because they are difficult to value, are highly susceptible to liquidity and credit risk, and generally pay a return to the party that has paid the premium only in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial difficulty). The protection "buyer" in a credit default contract may be obligated to pay the protection "seller" an up-front payment or a periodic stream of payments over the term of the contract, provided, generally, that no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the buyer the "par value" (i.e., full notional value) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity described in the swap, or the seller may be required to deliver the related net cash amount, if the swap is cash settled. The Fund may be either the buyer or seller in the transaction.

• **Forward Contracts, Futures, and Swaps.** Forward contracts, futures, and swaps involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the forward contract, future, or swap; possible lack of a liquid secondary market for a forward contract, future, or swap and the resulting inability to close a forward contract, future, or swap when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

------

**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Securitized Products Risk.** Investments in securitized products are subject to risks similar to traditional fixed-income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Unscheduled prepayments on securitized products may have to be reinvested at lower rates. A reduction in prepayments may increase the effective maturities of these securities, exposing them to the risk of decline in market value over time (extension risk).

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

**U.S. Government-Sponsored Securities Risk.** Securities issued by U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. government.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

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**Total Returns as of December 31**

![16961](ck0000898745-20260227_g29.jpg)

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| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **15.42%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(15.80)%** |

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**Average Annual Total Returns**

**For the periods ended December 31, 2025**

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| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **8.69%** | **4.76%** | **7.27%** |
| **Class A Return After Taxes on Distributions** | **6.03%** | **2.75%** | **5.44%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **6.33%** | **3.24%** | **5.34%** |
| **Class J Return Before Taxes** | **12.04%** | **5.76%** | **7.89%** |
| **Institutional Class Return Before Taxes** | **13.23%** | **5.93%** | **8.07%** |
| **Class R-3 Return Before Taxes** | **12.56%** | **5.33%** | **7.46%** |
| **Class R-5 Return Before Taxes** | **12.97%** | **5.67%** | **7.79%** |
| S&P 1500 Index (reflects no deduction for fees, expenses, or taxes) | 17.02% | 13.96% | 14.46% |
| S&P Target Date 2030 Index (reflects no deduction for fees, expenses, or taxes) | 15.13% | 7.07% | 8.41% |

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After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

The S&P 1500 Index is the Fund's primary 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2007), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

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**Purchase and Sale of Fund Shares**

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| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, and R-5** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

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<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

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**PRINCIPAL LIFETIME 2035 FUND**

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment): None**

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | N/A | 0.25% | N/A |
| Other Expenses | 0.01% | 0.32% | 0.26% |
| Acquired Fund Fees and Expenses | 0.52% | 0.52% | 0.52% |
| **Total Annual Fund Operating Expenses** | **0.53%** | **1.09%** | **0.78%** |

---

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Institutional Class** | $54 | $170 | $296 | $665 |
| **Class R-3** | 111 | 347 | 601 | 1329 |
| **Class R-5** | 80 | 249 | 433 | 966 |

---

**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 37.2% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"). 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

------

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of large market capitalization companies, fixed-income securities, domestic and foreign securities, securities denominated in foreign currencies, investment companies (including index funds), U.S. government and U.S. government-sponsored securities, and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use futures, options, swaps (including, for example, credit default, interest rate, and currency swaps), and forwards in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Strategic Income Fund. At that time, the Fund may be combined with the Principal LifeTime Strategic Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

![PrincipalLifetimePortfolios_bw.jpg](ck0000898745-20260227_g24.jpg)

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**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Credit Default Swaps.** Credit default swaps involve special risks in addition to those associated with swaps generally because they are difficult to value, are highly susceptible to liquidity and credit risk, and generally pay a return to the party that has paid the premium only in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial difficulty). The protection "buyer" in a credit default contract may be obligated to pay the protection "seller" an up-front payment or a periodic stream of payments over the term of the contract, provided, generally, that no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the buyer the "par value" (i.e., full notional value) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity described in the swap, or the seller may be required to deliver the related net cash amount, if the swap is cash settled. The Fund may be either the buyer or seller in the transaction.

• **Forward Contracts, Futures, and Swaps.** Forward contracts, futures, and swaps involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the forward contract, future, or swap; possible lack of a liquid secondary market for a forward contract, future, or swap and the resulting inability to close a forward contract, future, or swap when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

------

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Securitized Products Risk.** Investments in securitized products are subject to risks similar to traditional fixed-income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Unscheduled prepayments on securitized products may have to be reinvested at lower rates. A reduction in prepayments may increase the effective maturities of these securities, exposing them to the risk of decline in market value over time (extension risk).

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

------

**U.S. Government-Sponsored Securities Risk.** Securities issued by U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. government.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

**Total Returns as of December 31**

![16130](ck0000898745-20260227_g30.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **17.13%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(17.37)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **14.24%** | **6.67%** | **8.71%** |
| **Institutional Class Return After Taxes on Distributions** | **11.54%** | **4.78%** | **6.90%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **9.65%** | **4.76%** | **6.53%** |
| **Class R-3 Return Before Taxes** | **13.66%** | **6.06%** | **8.10%** |
| **Class R-5 Return Before Taxes** | **13.93%** | **6.39%** | **8.42%** |
| S&P 1500 Index (reflects no deduction for fees, expenses, or taxes) | 17.02% | 13.96% | 14.46% |
| S&P Target Date 2035 Index (reflects no deduction for fees, expenses, or taxes) | 16.80% | 8.19% | 9.32% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The S&P 1500 Index is the Fund's primary broad-based securities market index. The S&P Target Date 2035 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.

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**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2008), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

**Purchase and Sale of Fund Shares**

For Classes R-3, R-5, and Institutional Class shares, there are no minimum initial or subsequent investment requirements for eligible purchasers.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

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**PRINCIPAL LIFETIME 2040 FUND**

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** |
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 5.50% |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 0.15% | N/A | 0.25% | N/A |
| Other Expenses | 0.09% | 0.03% | 0.01% | 0.32% | 0.26% |
| Acquired Fund Fees and Expenses | 0.54% | 0.54% | 0.54% | 0.54% | 0.54% |
| **Total Annual Fund Operating Expenses** | **0.88%** | **0.72%** | **0.55%** | **1.11%** | **0.80%** |

---

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $635 | $815 | $1011 | $1575 |
| **Class J** | 174 | 230 | 401 | 894 |
| **Institutional Class** | 56 | 176 | 307 | 689 |
| **Class R-3** | 113 | 353 | 612 | 1352 |
| **Class R-5** | 82 | 255 | 444 | 990 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $74 | $230 | $401 | $894 |

---

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**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 38.9% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"). 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of small, medium, and large market capitalization companies, fixed-income securities, domestic and foreign (including those in emerging markets) securities, securities denominated in foreign currencies, investment companies (including index funds), U.S. government and U.S. government-sponsored securities, and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use equity index futures and options in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Strategic Income Fund. At that time, the Fund may be combined with the Principal LifeTime Strategic Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

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![PrincipalLifetimePortfolios_bw.jpg](ck0000898745-20260227_g24.jpg)

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

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**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Futures.** Futures contracts involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the futures contract; possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

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**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Securitized Products Risk.** Investments in securitized products are subject to risks similar to traditional fixed-income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Unscheduled prepayments on securitized products may have to be reinvested at lower rates. A reduction in prepayments may increase the effective maturities of these securities, exposing them to the risk of decline in market value over time (extension risk).

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

**U.S. Government-Sponsored Securities Risk.** Securities issued by U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. government.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

------

**Total Returns as of December 31**

![17282](ck0000898745-20260227_g31.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **17.96%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(18.87)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **8.87%** | **6.00%** | **8.36%** |
| **Class A Return After Taxes on Distributions** | **6.20%** | **4.00%** | **6.48%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **6.60%** | **4.27%** | **6.26%** |
| **Class J Return Before Taxes** | **14.41%** | **7.40%** | **9.18%** |
| **Institutional Class Return Before Taxes** | **15.55%** | **7.59%** | **9.37%** |
| **Class R-3 Return Before Taxes** | **14.96%** | **6.98%** | **8.75%** |
| **Class R-5 Return Before Taxes** | **15.26%** | **7.31%** | **9.09%** |
| S&P 1500 Index (reflects no deduction for fees, expenses, or taxes) | 17.02% | 13.96% | 14.46% |
| S&P Target Date 2040 Index (reflects no deduction for fees, expenses, or taxes) | 18.20% | 9.18% | 10.06% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

The S&P 1500 Index is the Fund's primary 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2007), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

------

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, and R-5** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**PRINCIPAL LIFETIME 2045 FUND**

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment): None**

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | N/A | 0.25% | N/A |
| Other Expenses | 0.01% | 0.32% | 0.26% |
| Acquired Fund Fees and Expenses | 0.56% | 0.56% | 0.56% |
| **Total Annual Fund Operating Expenses** | **0.57%** | **1.13%** | **0.82%** |

---

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Institutional Class** | $58 | $183 | $318 | $714 |
| **Class R-3** | 115 | 359 | 622 | 1375 |
| **Class R-5** | 84 | 262 | 455 | 1014 |

---

**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 44.6% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"). 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

------

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of small, medium, and large market capitalization companies, fixed-income securities, domestic and foreign (including those in emerging markets) securities, securities denominated in foreign currencies, investment companies (including index funds), and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use equity index futures and options in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Strategic Income Fund. At that time, the Fund may be combined with the Principal LifeTime Strategic Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

![PrincipalLifetimePortfolios_bw.jpg](ck0000898745-20260227_g24.jpg)

------

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Futures.** Futures contracts involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the futures contract; possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

------

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

------

**Total Returns as of December 31**

![14342](ck0000898745-20260227_g32.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **18.90%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(19.94)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **16.65%** | **8.30%** | **9.86%** |
| **Institutional Class Return After Taxes on Distributions** | **13.97%** | **6.43%** | **8.15%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **11.28%** | **6.11%** | **7.57%** |
| **Class R-3 Return Before Taxes** | **16.02%** | **7.68%** | **9.25%** |
| **Class R-5 Return Before Taxes** | **16.32%** | **8.01%** | **9.57%** |
| S&P 1500 Index (reflects no deduction for fees, expenses, or taxes) | 17.02% | 13.96% | 14.46% |
| S&P Target Date 2045 Index (reflects no deduction for fees, expenses, or taxes) | 19.48% | 9.84% | 10.54% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The S&P 1500 Index is the Fund's primary broad-based securities market index. The S&P Target Date 2045 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2008), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

------

**Purchase and Sale of Fund Shares**

For Classes R-3, R-5, and Institutional Class shares, there are no minimum initial or subsequent investment requirements for eligible purchasers.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**PRINCIPAL LIFETIME 2050 FUND**

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** |
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 5.50% |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.00% | 0.00% | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 0.15% | N/A | 0.25% | N/A |
| Other Expenses | 0.13% | 0.06% | 0.01% | 0.32% | 0.26% |
| Acquired Fund Fees and Expenses | 0.58% | 0.58% | 0.58% | 0.58% | 0.58% |
| **Total Annual Fund Operating Expenses** | **0.96%** | **0.79%** | **0.59%** | **1.15%** | **0.84%** |
| Expense Reimbursement <sup>(1)</sup> | 0.00% | N/A | N/A | N/A | N/A |
| **Total Annual Fund Operating Expenses after Expense Reimbursement** | **0.96%** | **0.79%** | **0.59%** | **1.15%** | **0.84%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.38% for Class A shares. It is expected that the expense limit will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limit prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $643 | $839 | $1052 | $1663 |
| **Class J** | 181 | 252 | 439 | 978 |
| **Institutional Class** | 60 | 189 | 329 | 738 |
| **Class R-3** | 117 | 365 | 633 | 1398 |
| **Class R-5** | 86 | 268 | 466 | 1037 |

---

------

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $81 | $252 | $439 | $978 |

---

**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 44.7% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"). 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of small, medium, and large market capitalization companies, fixed-income securities, domestic and foreign (including those in emerging markets) securities, securities denominated in foreign currencies, investment companies (including index funds), and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use equity index futures and options in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Strategic Income Fund. At that time, the Fund may be combined with the Principal LifeTime Strategic Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

------

![PrincipalLifetimePortfolios_bw.jpg](ck0000898745-20260227_g24.jpg)

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

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**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Futures.** Futures contracts involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the futures contract; possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

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**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

**Total Returns as of December 31**

![16208](ck0000898745-20260227_g33.jpg)

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| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **19.45%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(20.88)%** |

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**Average Annual Total Returns**

**For the periods ended December 31, 2025**

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| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **10.71%** | **7.19%** | **9.21%** |
| **Class A Return After Taxes on Distributions** | **8.19%** | **5.33%** | **7.51%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **7.79%** | **5.27%** | **7.04%** |
| **Class J Return Before Taxes** | **16.31%** | **8.58%** | **9.99%** |
| **Institutional Class Return Before Taxes** | **17.51%** | **8.80%** | **10.23%** |
| **Class R-3 Return Before Taxes** | **16.82%** | **8.19%** | **9.62%** |
| **Class R-5 Return Before Taxes** | **17.23%** | **8.53%** | **9.96%** |
| S&P 1500 Index (reflects no deduction for fees, expenses, or taxes) | 17.02% | 13.96% | 14.46% |
| S&P Target Date 2050 Index (reflects no deduction for fees, expenses, or taxes) | 19.56% | 10.13% | 10.79% |

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After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

The S&P 1500 Index is the Fund's primary 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2007), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

**Purchase and Sale of Fund Shares**

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| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, and R-5** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

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<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

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**PRINCIPAL LIFETIME 2055 FUND**

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment): None**

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

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| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | N/A | 0.25% | N/A |
| Other Expenses | 0.01% | 0.33% | 0.27% |
| Acquired Fund Fees and Expenses | 0.58% | 0.58% | 0.58% |
| **Total Annual Fund Operating Expenses** | **0.59%** | **1.16%** | **0.85%** |

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**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Institutional Class** | $60 | $189 | $329 | $738 |
| **Class R-3** | 118 | 368 | 638 | 1409 |
| **Class R-5** | 87 | 271 | 471 | 1049 |

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**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 48.3% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"). 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

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In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of small, medium, and large market capitalization companies, fixed-income securities, domestic and foreign (including those in emerging markets) securities, securities denominated in foreign currencies, investment companies (including index funds), and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use equity index futures and options in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Strategic Income Fund. At that time, the Fund may be combined with the Principal LifeTime Strategic Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

![PrincipalLifetimePortfolios_bw.jpg](ck0000898745-20260227_g24.jpg)

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**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Futures.** Futures contracts involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the futures contract; possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

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• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

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**Total Returns as of December 31**

![14341](ck0000898745-20260227_g34.jpg)

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| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **19.93%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(21.46)%** |

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**Average Annual Total Returns**

**For the periods ended December 31, 2025**

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| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **17.77%** | **8.95%** | **10.37%** |
| **Institutional Class Return After Taxes on Distributions** | **15.27%** | **7.23%** | **8.84%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **11.93%** | **6.69%** | **8.08%** |
| **Class R-3 Return Before Taxes** | **17.09%** | **8.35%** | **9.75%** |
| **Class R-5 Return Before Taxes** | **17.41%** | **8.68%** | **10.09%** |
| S&P 1500 Index (reflects no deduction for fees, expenses, or taxes) | 17.02% | 13.96% | 14.46% |
| S&P Target Date 2055 Index (reflects no deduction for fees, expenses, or taxes) | 20.06% | 10.27% | 10.91% |

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After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The S&P 1500 Index is the Fund's primary broad-based securities market index. The S&P Target Date 2055 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2008), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

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**Purchase and Sale of Fund Shares**

For Classes R-3, R-5, and Institutional Class shares, there are no minimum initial or subsequent investment requirements for eligible purchasers.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

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**PRINCIPAL LIFETIME 2060 FUND**

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-3** | **R-5** |
| Maximum Deferred Sales Charge (Load)<br>(as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |  |

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**Annual Fund Operating Expenses**

**(expenses that you pay each year as a percentage of the value of your investment)**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.00% | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | 0.15% | N/A | 0.25% | N/A |
| Other Expenses | 0.20% | 0.01% | 0.33% | 0.27% |
| Acquired Fund Fees and Expenses | 0.58% | 0.58% | 0.58% | 0.58% |
| **Total Annual Fund Operating Expenses** | **0.93%** | **0.59%** | **1.16%** | **0.85%** |
| Expense Reimbursement <sup>(1)</sup> | 0.00% | N/A | N/A | N/A |
| **Total Annual Fund Operating Expenses after Expense Reimbursement** | **0.93%** | **0.59%** | **1.16%** | **0.85%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.38% for Class J shares. It is expected that the expense limit will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limit prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $195 | $296 | $515 | $1143 |
| **Institutional Class** | 60 | 189 | 329 | 738 |
| **Class R-3** | 118 | 368 | 638 | 1409 |
| **Class R-5** | 87 | 271 | 471 | 1049 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $95 | $296 | $515 | $1143 |

---

------

**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 47.4% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"). 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of small, medium, and large market capitalization companies, fixed-income securities, domestic and foreign (including those in emerging markets) securities, securities denominated in foreign currencies, investment companies (including index funds), and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use equity index futures and options in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Strategic Income Fund. At that time, the Fund may be combined with the Principal LifeTime Strategic Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

------

![PrincipalLifetimePortfolios_bw.jpg](ck0000898745-20260227_g24.jpg)

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

------

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Futures.** Futures contracts involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the futures contract; possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

------

**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

**Total Returns as of December 31**

![15650](ck0000898745-20260227_g35.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **20.12%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(21.80)%** |

---

------

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **17.73%** | **9.02%** | **10.43%** |
| **Institutional Class Return After Taxes on Distributions** | **15.34%** | **7.37%** | **9.01%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **11.85%** | **6.76%** | **8.17%** |
| **Class J Return Before Taxes** | **16.37%** | **8.64%** | **10.04%** |
| **Class R-3 Return Before Taxes** | **17.08%** | **8.41%** | **9.81%** |
| **Class R-5 Return Before Taxes** | **17.49%** | **8.76%** | **10.15%** |
| S&P 1500 Index (reflects no deduction for fees, expenses, or taxes) | 17.02% | 13.96% | 14.46% |
| S&P Target Date 2060 Index (reflects no deduction for fees, expenses, or taxes) | 19.94% | 10.26% | 10.98% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The S&P 1500 Index is the Fund's primary 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2013), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **J** | Initial Investment | $1000<sup>(1)</sup> |
| **J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, and R-5** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**PRINCIPAL LIFETIME 2065 FUND**

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment): None**

**Annual Fund Operating Expenses**

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | N/A | 0.25% | N/A |
| Other Expenses | 0.03% | 0.33% | 0.27% |
| Acquired Fund Fees and Expenses | 0.58% | 0.58% | 0.58% |
| **Total Annual Fund Operating Expenses** | **0.61%** | **1.16%** | **0.85%** |

---

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Institutional Class** | $62 | $195 | $340 | $762 |
| **Class R-3** | 118 | 368 | 638 | 1409 |
| **Class R-5** | 87 | 271 | 471 | 1049 |

---

**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 48.3% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"). 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

------

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of small, medium, and large market capitalization companies, fixed-income securities, domestic and foreign (including those in emerging markets) securities, securities denominated in foreign currencies, investment companies (including index funds), and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use equity index futures and options in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Strategic Income Fund. At that time, the Fund may be combined with the Principal LifeTime Strategic Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

![PrincipalLifetimePortfolios_bw.jpg](ck0000898745-20260227_g24.jpg)

------

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Futures.** Futures contracts involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the futures contract; possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

------

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

Life of Fund returns are measured from the date the Fund's shares were first sold (September 6, 2017).

------

**Total Returns as of December 31**

![14445](ck0000898745-20260227_g36.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **20.50%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(21.97)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **Life of Fund** |
| **Institutional Class Return Before Taxes** | **17.74%** | **9.01%** | **10.17%** |
| **Institutional Class Return After Taxes on Distributions** | **15.73%** | **7.65%** | **8.94%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **11.63%** | **6.80%** | **7.91%** |
| **Class R-3 Return Before Taxes** | **17.03%** | **8.41%** | **9.59%** |
| **Class R-5 Return Before Taxes** | **17.43%** | **8.75%** | **9.93%** |
| S&P 1500 Index (reflects no deduction for fees, expenses, or taxes) | 17.02% | 13.96% | 14.49% |
| S&P Target Date 2065+ Index (reflects no deduction for fees, expenses, or taxes) | 20.17% | 10.43% | 10.66% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The S&P 1500 Index is the Fund's primary broad-based securities market index. The S&P Target Date 2065+ 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2017), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

------

**Purchase and Sale of Fund Shares**

For Classes R-3, R-5, and Institutional Class shares, there are no minimum initial or subsequent investment requirements for eligible purchasers.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

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**PRINCIPAL LIFETIME 2070 FUND**

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-3** | **R-5** |
| Maximum Deferred Sales Charge (Load)<br>(as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |  |

---

**Annual Fund Operating Expenses**

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.00% | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | 0.15% | N/A | 0.25% | N/A |
| Other Expenses | 3.21% | 0.07% | 0.36% | 0.30% |
| Acquired Fund Fees and Expenses | 0.58% | 0.58% | 0.58% | 0.58% |
| **Total Annual Fund Operating Expenses** | **3.94%** | **0.65%** | **1.19%** | **0.88%** |
| Expense Reimbursement <sup>(1)</sup> | (3.06)% | (0.02)% | 0.00% | 0.00% |
| **Total Annual Fund Operating Expenses after Expense Reimbursement** | **0.88%** | **0.63%** | **1.19%** | **0.88%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.30% for Class J, 0.05% for Institutional Class, 0.62% for Class R-3, and 0.31% for Class R-5 shares. It is expected that the expense limits will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $190 | $919 | $1766 | $3963 |
| **Institutional Class** | 64 | 206 | 360 | 809 |
| **Class R-3** | 121 | 378 | 654 | 1443 |
| **Class R-5** | 90 | 281 | 488 | 1084 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $90 | $919 | $1766 | $3963 |

---

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**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 47.9% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"). 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

In selecting underlying funds and target weights, Principal Global Investors, LLC ("PGI"), the Fund's investment advisor, considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of small, medium, and large market capitalization companies, fixed-income securities, domestic and foreign (including those in emerging markets) securities, securities denominated in foreign currencies, investment companies (including index funds), and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use equity index futures and options in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Strategic Income Fund. At that time, the Fund may be combined with the Principal LifeTime Strategic Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

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![PrincipalLifetimePortfolios_bw.jpg](ck0000898745-20260227_g24.jpg)

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

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**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Futures.** Futures contracts involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the futures contract; possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

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**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

Life of Fund returns are measured from the date the Fund's shares were first sold (March 1, 2023).

**Total Returns as of December 31**

![2748779112612](ck0000898745-20260227_g37.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2025** | **9.57%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q4 2024** | **(1.69)%** |

---

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**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | |
|:---|:---|:---|
| | **1 Year** | **Life of Fund** |
| **Institutional Class Return Before Taxes** | **17.65%** | **16.42%** |
| **Institutional Class Return After Taxes on Distributions** | **16.17%** | **15.40%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **11.23%** | **12.69%** |
| **Class J Return Before Taxes** | **16.31%** | **16.38%** |
| **Class R-3 Return Before Taxes** | **16.98%** | **15.75%** |
| **Class R-5 Return Before Taxes** | **17.35%** | **16.15%** |
| S&P 1500 Index (reflects no deduction for fees, expenses, or taxes) | 17.02% | 21.98% |
| S&P Target Date 2065+ Index (reflects no deduction for fees, expenses, or taxes) | 20.17% | 17.68% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The S&P 1500 Index is the Fund's primary broad-based securities market index. The S&P Target Date 2065+ 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2023), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2023), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

**Purchase and Sale of Fund Shares**

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| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **J** | Initial Investment | $1000<sup>(1)</sup> |
| **J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, and R-5** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

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<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

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**PRINCIPAL LIFETIME HYBRID INCOME FUND** 

**Objective**

The Fund seeks current income, and as a secondary objective, capital appreciation.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

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| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-6** |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |

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**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-6** |
| Management Fees | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | 0.15% | N/A | N/A |
| Other Expenses | 0.04% | 0.34% | 0.07% |
| Acquired Fund Fees and Expenses | 0.29% | 0.29% | 0.29% |
| **Total Annual Fund Operating Expenses** | **0.48%** | **0.63%** | **0.36%** |
| Expense Reimbursement <sup>(1)</sup> | N/A | (0.29)% | (0.05)% |
| **Total Annual Fund Operating Expenses After Expense Reimbursement** | **0.48%** | **0.34%** | **0.31%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.05% for Institutional Class shares. In addition, for Class R-6 shares, the expense limit will maintain "Other Expenses" (expressed as a percent of average net assets on an annualized basis) not to exceed 0.02%, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses). It is expected that the expense limits will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $149 | $154 | $269 | $604 |
| **Institutional Class** | 35 | 172 | 322 | 759 |
| **Class R-6** | 32 | 111 | 197 | 451 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $49 | $154 | $269 | $604 |

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**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying funds' performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 27.3% of the average value of its portfolio.

**Principal Investment Strategies**

The Fund invests according to an asset allocation strategy designed for investors primarily seeking current income and secondarily 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 underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"), with a majority of the Fund's assets invested in index funds. 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of large market capitalization companies, fixed-income securities, domestic and foreign securities, securities denominated in foreign currencies, investment companies (including index funds), securitized products, U.S. government and U.S. government-sponsored securities, and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use futures, options, swaps (including, for example, credit default, interest rate, and currency swaps), and forwards in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

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![HybridFunds_bw.jpg](ck0000898745-20260227_g38.jpg)

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

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**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Credit Default Swaps.** Credit default swaps involve special risks in addition to those associated with swaps generally because they are difficult to value, are highly susceptible to liquidity and credit risk, and generally pay a return to the party that has paid the premium only in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial difficulty). The protection "buyer" in a credit default contract may be obligated to pay the protection "seller" an up-front payment or a periodic stream of payments over the term of the contract, provided, generally, that no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the buyer the "par value" (i.e., full notional value) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity described in the swap, or the seller may be required to deliver the related net cash amount, if the swap is cash settled. The Fund may be either the buyer or seller in the transaction.

• **Forward Contracts, Futures, and Swaps.** Forward contracts, futures, and swaps involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the forward contract, future, or swap; possible lack of a liquid secondary market for a forward contract, future, or swap and the resulting inability to close a forward contract, future, or swap when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

------

**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Securitized Products Risk.** Investments in securitized products are subject to risks similar to traditional fixed-income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Unscheduled prepayments on securitized products may have to be reinvested at lower rates. A reduction in prepayments may increase the effective maturities of these securities, exposing them to the risk of decline in market value over time (extension risk).

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

**U.S. Government-Sponsored Securities Risk.** Securities issued by U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. government.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Class J shares (March 1, 2018), the performance shown in the table is that of the Fund's Institutional Class shares, adjusted to reflect the respective fees and expenses of each class. These adjustments result in performance for such periods that is no higher than the historical performance of the Institutional Class shares.

------

**Total Returns as of December 31**

![17217](ck0000898745-20260227_g39.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **7.43%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q2 2022** | **(8.44)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **11.15%** | **3.83%** | **4.99%** |
| **Institutional Class Return After Taxes on Distributions** | **9.44%** | **2.37%** | **3.73%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **6.87%** | **2.46%** | **3.46%** |
| **Class J Return Before Taxes** | **10.08%** | **3.65%** | **4.78%** |
| **Class R-6 Return Before Taxes** | **11.26%** | **3.87%** | **5.03%** |
| Bloomberg US. Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| S&P Target Date Retirement Income Index (reflects no deduction for fees, expenses, or taxes) | 11.66% | 4.15% | 5.32% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The Bloomberg US Aggregate Index is the Fund's primary 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2014), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

------

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **J** | Initial Investment | $1000<sup>(1)</sup> |
| **J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**PRINCIPAL LIFETIME HYBRID 2015 FUND**

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-6** |
| Maximum Deferred Sales Charge (Load) <br>(as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-6** |
| Management Fees | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | 0.15% | N/A | N/A |
| Other Expenses | 0.03% | 0.17% | 0.07% |
| Acquired Fund Fees and Expenses | 0.29% | 0.29% | 0.29% |
| **Total Annual Fund Operating Expenses** | **0.47%** | **0.46%** | **0.36%** |
| Expense Reimbursement <sup>(1)</sup> | N/A | (0.12)% | (0.05)% |
| **Total Annual Fund Operating Expenses After Expense Reimbursement** | **0.47%** | **0.34%** | **0.31%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.05% for Institutional Class shares. In addition, for Class R-6 shares, the expense limit will maintain "Other Expenses" (expressed as a percent of average net assets on an annualized basis) not to exceed 0.02%, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses). It is expected that the expense limits will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $148 | $151 | $263 | $591 |
| **Institutional Class** | 35 | 136 | 246 | 568 |
| **Class R-6** | 32 | 111 | 197 | 451 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $48 | $151 | $263 | $591 |

---

------

**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying funds' performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 19.5% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"), with a majority of the Fund's assets invested in index funds. 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of large market capitalization companies, fixed-income securities, domestic and foreign securities, securities denominated in foreign currencies, investment companies (including index funds), securitized products, U.S. government and U.S. government-sponsored securities, and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use futures, options, swaps (including, for example, credit default, interest rate, and currency swaps), and forwards in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the Principal LifeTime Hybrid Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

------

![HybridFunds_bw.jpg](ck0000898745-20260227_g38.jpg)

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

------

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Credit Default Swaps.** Credit default swaps involve special risks in addition to those associated with swaps generally because they are difficult to value, are highly susceptible to liquidity and credit risk, and generally pay a return to the party that has paid the premium only in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial difficulty). The protection "buyer" in a credit default contract may be obligated to pay the protection "seller" an up-front payment or a periodic stream of payments over the term of the contract, provided, generally, that no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the buyer the "par value" (i.e., full notional value) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity described in the swap, or the seller may be required to deliver the related net cash amount, if the swap is cash settled. The Fund may be either the buyer or seller in the transaction.

• **Forward Contracts, Futures, and Swaps.** Forward contracts, futures, and swaps involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the forward contract, future, or swap; possible lack of a liquid secondary market for a forward contract, future, or swap and the resulting inability to close a forward contract, future, or swap when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

------

**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Securitized Products Risk.** Investments in securitized products are subject to risks similar to traditional fixed-income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Unscheduled prepayments on securitized products may have to be reinvested at lower rates. A reduction in prepayments may increase the effective maturities of these securities, exposing them to the risk of decline in market value over time (extension risk).

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

**U.S. Government-Sponsored Securities Risk.** Securities issued by U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. government.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Class J shares (March 1, 2018), the performance shown in the table is that of the Fund's Institutional Class shares, adjusted to reflect the respective fees and expenses of each class. These adjustments result in performance for such periods that is no higher than the historical performance of the Institutional Class shares.

------

**Total Returns as of December 31**

![18373](ck0000898745-20260227_g40.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **9.79%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q2 2022** | **(8.93)%** |

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**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **11.23%** | **4.39%** | **6.13%** |
| **Institutional Class Return After Taxes on Distributions** | **9.60%** | **2.94%** | **4.88%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **6.94%** | **2.91%** | **4.43%** |
| **Class J Return Before Taxes** | **10.01%** | **4.24%** | **5.93%** |
| **Class R-6 Return Before Taxes** | **11.24%** | **4.43%** | **6.17%** |
| Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| S&P Target Date 2015 Index (reflects no deduction for fees, expenses, or taxes) | 12.15% | 4.91% | 6.34% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The Bloomberg US Aggregate Index is the Fund's primary broad-based securities market index. The S&P Target Date 2015 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2014), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

------

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **J** | Initial Investment | $1000<sup>(1)</sup> |
| **J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

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<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**PRINCIPAL LIFETIME HYBRID 2020 FUND**

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-6** |
| Maximum Deferred Sales Charge (Load) <br>(as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-6** |
| Management Fees | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | 0.15% | N/A | N/A |
| Other Expenses | 0.02% | 0.10% | 0.02% |
| Acquired Fund Fees and Expenses | 0.29% | 0.29% | 0.29% |
| **Total Annual Fund Operating Expenses** | **0.46%** | **0.39%** | **0.31%** |
| Expense Reimbursement <sup>(1)</sup> | N/A | (0.05)% | 0.00% |
| **Total Annual Fund Operating Expenses After Expense Reimbursement** | **0.46%** | **0.34%** | **0.31%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.05% for Institutional Class shares. In addition, for Class R-6 shares, the expense limit will maintain "Other Expenses" (expressed as a percent of average net assets on an annualized basis) not to exceed 0.02%, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses). It is expected that the expense limits will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $147 | $148 | $258 | $579 |
| **Institutional Class** | 35 | 120 | 214 | 488 |
| **Class R-6** | 32 | 100 | 174 | 393 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $47 | $148 | $258 | $579 |

---

------

**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying funds' performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 28.1% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"), with a majority of the Fund's assets invested in index funds. 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of large market capitalization companies, fixed-income securities, domestic and foreign securities, securities denominated in foreign currencies, investment companies (including index funds), securitized products, U.S. government and U.S. government-sponsored securities, and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use futures, options, swaps (including, for example, credit default, interest rate, and currency swaps), and forwards in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the Principal LifeTime Hybrid Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

------

![HybridFunds_bw.jpg](ck0000898745-20260227_g38.jpg)

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

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**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Credit Default Swaps.** Credit default swaps involve special risks in addition to those associated with swaps generally because they are difficult to value, are highly susceptible to liquidity and credit risk, and generally pay a return to the party that has paid the premium only in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial difficulty). The protection "buyer" in a credit default contract may be obligated to pay the protection "seller" an up-front payment or a periodic stream of payments over the term of the contract, provided, generally, that no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the buyer the "par value" (i.e., full notional value) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity described in the swap, or the seller may be required to deliver the related net cash amount, if the swap is cash settled. The Fund may be either the buyer or seller in the transaction.

• **Forward Contracts, Futures, and Swaps.** Forward contracts, futures, and swaps involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the forward contract, future, or swap; possible lack of a liquid secondary market for a forward contract, future, or swap and the resulting inability to close a forward contract, future, or swap when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

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**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Securitized Products Risk.** Investments in securitized products are subject to risks similar to traditional fixed-income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Unscheduled prepayments on securitized products may have to be reinvested at lower rates. A reduction in prepayments may increase the effective maturities of these securities, exposing them to the risk of decline in market value over time (extension risk).

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

**U.S. Government-Sponsored Securities Risk.** Securities issued by U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. government.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Class J shares (March 1, 2018), the performance shown in the table is that of the Fund's Institutional Class shares, adjusted to reflect the respective fees and expenses of each class. These adjustments result in performance for such periods that is no higher than the historical performance of the Institutional Class shares.

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**Total Returns as of December 31**![18374](ck0000898745-20260227_g41.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **11.16%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(10.35)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **12.09%** | **5.12%** | **6.88%** |
| **Institutional Class Return After Taxes on Distributions** | **10.00%** | **3.49%** | **5.53%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **7.73%** | **3.47%** | **5.05%** |
| **Class J Return Before Taxes** | **10.97%** | **4.99%** | **6.69%** |
| **Class R-6 Return Before Taxes** | **12.13%** | **5.16%** | **6.91%** |
| Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| S&P Target Date 2020 Index (reflects no deduction for fees, expenses, or taxes) | 12.72% | 5.35% | 6.81% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The Bloomberg US Aggregate Index is the Fund's primary 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2014), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

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**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **J** | Initial Investment | $1000<sup>(1)</sup> |
| **J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

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<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**PRINCIPAL LIFETIME HYBRID 2025 FUND**

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

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| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-6** |
| Maximum Deferred Sales Charge (Load) <br>(as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-6** |
| Management Fees | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | 0.15% | N/A | N/A |
| Other Expenses | 0.01% | 0.08% | 0.02% |
| Acquired Fund Fees and Expenses | 0.28% | 0.28% | 0.28% |
| **Total Annual Fund Operating Expenses** | **0.44%** | **0.36%** | **0.30%** |
| Expense Reimbursement <sup>(1)</sup> | N/A | (0.03)% | 0.00% |
| **Total Annual Fund Operating Expenses After Expense Reimbursement** | **0.44%** | **0.33%** | **0.30%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.05% for Institutional Class shares. In addition, for Class R-6 shares, the expense limit will maintain "Other Expenses" (expressed as a percent of average net assets on an annualized basis) not to exceed 0.02%, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses). It is expected that the expense limits will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $145 | $141 | $246 | $555 |
| **Institutional Class** | 34 | 113 | 199 | 453 |
| **Class R-6** | 31 | 97 | 169 | 381 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $45 | $141 | $246 | $555 |

---

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**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying funds' performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 24.4% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"), with a majority of the Fund's assets invested in index funds. 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of large market capitalization companies, fixed-income securities, domestic and foreign securities, securities denominated in foreign currencies, investment companies (including index funds), securitized products, U.S. government and U.S. government-sponsored securities, and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use futures, options, swaps (including, for example, credit default, interest rate, and currency swaps), and forwards in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the Principal LifeTime Hybrid Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

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![HybridFunds_bw.jpg](ck0000898745-20260227_g38.jpg)

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

------

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Credit Default Swaps.** Credit default swaps involve special risks in addition to those associated with swaps generally because they are difficult to value, are highly susceptible to liquidity and credit risk, and generally pay a return to the party that has paid the premium only in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial difficulty). The protection "buyer" in a credit default contract may be obligated to pay the protection "seller" an up-front payment or a periodic stream of payments over the term of the contract, provided, generally, that no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the buyer the "par value" (i.e., full notional value) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity described in the swap, or the seller may be required to deliver the related net cash amount, if the swap is cash settled. The Fund may be either the buyer or seller in the transaction.

• **Forward Contracts, Futures, and Swaps.** Forward contracts, futures, and swaps involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the forward contract, future, or swap; possible lack of a liquid secondary market for a forward contract, future, or swap and the resulting inability to close a forward contract, future, or swap when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

------

**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Securitized Products Risk.** Investments in securitized products are subject to risks similar to traditional fixed-income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Unscheduled prepayments on securitized products may have to be reinvested at lower rates. A reduction in prepayments may increase the effective maturities of these securities, exposing them to the risk of decline in market value over time (extension risk).

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

**U.S. Government-Sponsored Securities Risk.** Securities issued by U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. government.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Class J shares (March 1, 2018), the performance shown in the table is that of the Fund's Institutional Class shares, adjusted to reflect the respective fees and expenses of each class. These adjustments result in performance for such periods that is no higher than the historical performance of the Institutional Class shares.

------

**Total Returns as of December 31**

![18371](ck0000898745-20260227_g42.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **12.56%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(12.50)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **13.12%** | **5.87%** | **7.63%** |
| **Institutional Class Return After Taxes on Distributions** | **11.37%** | **4.38%** | **6.38%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **8.20%** | **4.10%** | **5.72%** |
| **Class J Return Before Taxes** | **12.01%** | **5.74%** | **7.45%** |
| **Class R-6 Return Before Taxes** | **13.15%** | **5.88%** | **7.64%** |
| Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| S&P Target Date 2025 Index (reflects no deduction for fees, expenses, or taxes) | 13.98% | 6.07% | 7.57% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The Bloomberg US Aggregate Index is the Fund's primary broad-based securities market index. The S&P Target Date 2025 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2014), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

------

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **J** | Initial Investment | $1000<sup>(1)</sup> |
| **J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

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<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**PRINCIPAL LIFETIME HYBRID 2030 FUND** 

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

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| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-6** |
| Maximum Deferred Sales Charge (Load) <br>(as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-6** |
| Management Fees | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | 0.15% | N/A | N/A |
| Other Expenses | 0.02% | 0.06% | 0.01% |
| Acquired Fund Fees and Expenses | 0.28% | 0.28% | 0.28% |
| **Total Annual Fund Operating Expenses** | **0.45%** | **0.34%** | **0.29%** |
| Expense Reimbursement <sup>(1)</sup> | N/A | (0.01)% | N/A |
| **Total Annual Fund Operating Expenses After Expense Reimbursement** | **0.45%** | **0.33%** | **0.29%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.05% for Institutional Class shares. It is expected that the expense limit will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $146 | $144 | $252 | $567 |
| **Institutional Class** | 34 | 108 | 190 | 430 |
| **Class R-6** | 30 | 93 | 163 | 368 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $46 | $144 | $252 | $567 |

---

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**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying funds' performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 25.4% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"), with a majority of the Fund's assets invested in index funds. 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of large market capitalization companies, fixed-income securities, domestic and foreign securities, securities denominated in foreign currencies, investment companies (including index funds), U.S. government and U.S. government-sponsored securities, and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use futures, options, swaps (including, for example, credit default, interest rate, and currency swaps), and forwards in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the Principal LifeTime Hybrid Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

------

![HybridFunds_bw.jpg](ck0000898745-20260227_g38.jpg)

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

------

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Credit Default Swaps.** Credit default swaps involve special risks in addition to those associated with swaps generally because they are difficult to value, are highly susceptible to liquidity and credit risk, and generally pay a return to the party that has paid the premium only in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial difficulty). The protection "buyer" in a credit default contract may be obligated to pay the protection "seller" an up-front payment or a periodic stream of payments over the term of the contract, provided, generally, that no credit event on a reference obligation has occurred. If a credit event occurs, the seller generally must pay the buyer the "par value" (i.e., full notional value) of the swap in exchange for an equal face amount of deliverable obligations of the reference entity described in the swap, or the seller may be required to deliver the related net cash amount, if the swap is cash settled. The Fund may be either the buyer or seller in the transaction.

• **Forward Contracts, Futures, and Swaps.** Forward contracts, futures, and swaps involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the forward contract, future, or swap; possible lack of a liquid secondary market for a forward contract, future, or swap and the resulting inability to close a forward contract, future, or swap when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

------

**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Securitized Products Risk.** Investments in securitized products are subject to risks similar to traditional fixed-income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Unscheduled prepayments on securitized products may have to be reinvested at lower rates. A reduction in prepayments may increase the effective maturities of these securities, exposing them to the risk of decline in market value over time (extension risk).

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

**U.S. Government-Sponsored Securities Risk.** Securities issued by U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. government.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Class J shares (March 1, 2018), the performance shown in the table is that of the Fund's Institutional Class shares, adjusted to reflect the respective fees and expenses of each class. These adjustments result in performance for such periods that is no higher than the historical performance of the Institutional Class shares.

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**Total Returns as of December 31**

![18353](ck0000898745-20260227_g43.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **14.20%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(14.39)%** |

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**Average Annual Total Returns**

**For the periods ended December 31, 2025**

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| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **14.41%** | **6.61%** | **8.36%** |
| **Institutional Class Return After Taxes on Distributions** | **12.80%** | **5.13%** | **7.09%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **9.00%** | **4.72%** | **6.35%** |
| **Class J Return Before Taxes** | **13.27%** | **6.49%** | **8.16%** |
| **Class R-6 Return Before Taxes** | **14.46%** | **6.65%** | **8.39%** |
| S&P 1500 Index (reflects no deduction for fees, expenses, or taxes) | 17.02% | 13.96% | 14.46% |
| S&P Target Date 2030 Index (reflects no deduction for fees, expenses, or taxes) | 15.13% | 7.07% | 8.41% |

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After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The S&P 1500 Index is the Fund's primary 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2014), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

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**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **J** | Initial Investment | $1000<sup>(1)</sup> |
| **J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

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<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

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**PRINCIPAL LIFETIME HYBRID 2035 FUND** 

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

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| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-6** |
| Maximum Deferred Sales Charge (Load) <br>(as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-6** |
| Management Fees | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | 0.15% | N/A | N/A |
| Other Expenses | 0.02% | 0.07% | 0.02% |
| Acquired Fund Fees and Expenses | 0.27% | 0.27% | 0.27% |
| **Total Annual Fund Operating Expenses** | **0.44%** | **0.34%** | **0.29%** |
| Expense Reimbursement <sup>(1)</sup> | N/A | (0.02)% | N/A |
| **Total Annual Fund Operating Expenses After Expense Reimbursement** | **0.44%** | **0.32%** | **0.29%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.05% for Institutional Class shares. It is expected that the expense limit will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $145 | $141 | $246 | $555 |
| **Institutional Class** | 33 | 107 | 189 | 429 |
| **Class R-6** | 30 | 93 | 163 | 368 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $45 | $141 | $246 | $555 |

---

------

**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying funds' performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 28.3% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"), with a majority of the Fund's assets invested in index funds. 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of large market capitalization companies, fixed-income securities, domestic and foreign securities, securities denominated in foreign currencies, investment companies (including index funds), U.S. government and U.S. government-sponsored securities, and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use equity index futures and options in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the Principal LifeTime Hybrid Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

------

![HybridFunds_bw.jpg](ck0000898745-20260227_g38.jpg)

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

------

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Futures.** Futures contracts involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the futures contract; possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

------

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Securitized Products Risk.** Investments in securitized products are subject to risks similar to traditional fixed-income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Unscheduled prepayments on securitized products may have to be reinvested at lower rates. A reduction in prepayments may increase the effective maturities of these securities, exposing them to the risk of decline in market value over time (extension risk).

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

**U.S. Government-Sponsored Securities Risk.** Securities issued by U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. government.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Class J shares (March 1, 2018), the performance shown in the table is that of the Fund's Institutional Class shares, adjusted to reflect the respective fees and expenses of each class. These adjustments result in performance for such periods that is no higher than the historical performance of the Institutional Class shares.

**Total Returns as of December 31**

![17072](ck0000898745-20260227_g44.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **15.37%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(16.18)%** |

---

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**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **15.57%** | **7.53%** | **9.11%** |
| **Institutional Class Return After Taxes on Distributions** | **13.97%** | **6.08%** | **7.89%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **9.74%** | **5.49%** | **7.03%** |
| **Class J Return Before Taxes** | **14.51%** | **7.41%** | **8.90%** |
| **Class R-6 Return Before Taxes** | **15.66%** | **7.58%** | **9.15%** |
| S&P 1500 Index (reflects no deduction for fees, expenses, or taxes) | 17.02% | 13.96% | 14.46% |
| S&P Target Date 2035 Index (reflects no deduction for fees, expenses, or taxes) | 16.80% | 8.19% | 9.32% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The S&P 1500 Index is the Fund's primary broad-based securities market index. The S&P Target Date 2035 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2014), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

**Purchase and Sale of Fund Shares**

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| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **J** | Initial Investment | $1000<sup>(1)</sup> |
| **J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

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<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

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**PRINCIPAL LIFETIME HYBRID 2040 FUND**

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

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| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-6** |
| Maximum Deferred Sales Charge (Load) <br>(as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class**  | **Share Class**  | **Share Class**  |
| | **J** | **Inst.** | **R-6** |
| Management Fees | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | 0.15% | N/A | N/A |
| Other Expenses | 0.03% | 0.06% | 0.02% |
| Acquired Fund Fees and Expenses | 0.29% | 0.29% | 0.29% |
| **Total Annual Fund Operating Expenses** | **0.47%** | **0.35%** | **0.31%** |
| Expense Reimbursement <sup>(1)</sup> | N/A | (0.01)% | N/A |
| **Total Annual Fund Operating Expenses After Expense Reimbursement** | **0.47%** | **0.34%** | **0.31%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.05% for Institutional Class shares. It is expected that the expense limit will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $148 | $151 | $263 | $591 |
| **Institutional Class** | 35 | 112 | 196 | 442 |
| **Class R-6** | 32 | 100 | 174 | 393 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $48 | $151 | $263 | $591 |

---

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**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying funds' performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 29.8% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"), with a majority of the Fund's assets invested in index funds. 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of small, medium, and large market capitalization companies, fixed-income securities, domestic and foreign (including those in emerging markets) securities, securities denominated in foreign currencies, investment companies (including index funds), U.S. government and U.S. government-sponsored securities, and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use equity index futures and options in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the Principal LifeTime Hybrid Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

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![HybridFunds_bw.jpg](ck0000898745-20260227_g38.jpg)

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

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**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Futures.** Futures contracts involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the futures contract; possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

------

**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Securitized Products Risk.** Investments in securitized products are subject to risks similar to traditional fixed-income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Unscheduled prepayments on securitized products may have to be reinvested at lower rates. A reduction in prepayments may increase the effective maturities of these securities, exposing them to the risk of decline in market value over time (extension risk).

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

**U.S. Government-Sponsored Securities Risk.** Securities issued by U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. government.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Class J shares (March 1, 2018), the performance shown in the table is that of the Fund's Institutional Class shares, adjusted to reflect the respective fees and expenses of each class. These adjustments result in performance for such periods that is no higher than the historical performance of the Institutional Class shares.

------

**Total Returns as of December 31**

![17635](ck0000898745-20260227_g45.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **16.41%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(17.67)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **17.24%** | **8.62%** | **9.85%** |
| **Institutional Class Return After Taxes on Distributions** | **15.75%** | **7.21%** | **8.64%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **10.79%** | **6.39%** | **7.68%** |
| **Class J Return Before Taxes** | **16.14%** | **8.48%** | **9.63%** |
| **Class R-6 Return Before Taxes** | **17.25%** | **8.65%** | **9.89%** |
| S&P 1500 Index (reflects no deduction for fees, expenses, or taxes) | 17.02% | 13.96% | 14.46% |
| S&P Target Date 2040 Index (reflects no deduction for fees, expenses, or taxes) | 18.20% | 9.18% | 10.06% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The S&P 1500 Index is the Fund's primary 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2014), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

------

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **J** | Initial Investment | $1000<sup>(1)</sup> |
| **J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**PRINCIPAL LIFETIME HYBRID 2045 FUND**

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-6** |
| Maximum Deferred Sales Charge (Load) <br>(as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class**  | **Share Class**  | **Share Class**  |
| | **J** | **Inst.** | **R-6** |
| Management Fees | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | 0.15% | N/A | N/A |
| Other Expenses | 0.04% | 0.08% | 0.02% |
| Acquired Fund Fees and Expenses | 0.30% | 0.30% | 0.30% |
| **Total Annual Fund Operating Expenses** | **0.49%** | **0.38%** | **0.32%** |
| Expense Reimbursement <sup>(1)</sup> | N/A | (0.03)% | 0.00% |
| **Total Annual Fund Operating Expenses After Expense Reimbursement** | **0.49%** | **0.35%** | **0.32%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.05% for Institutional Class shares. In addition, for Class R-6 shares, the expense limit will maintain "Other Expenses" (expressed as a percent of average net assets on an annualized basis) not to exceed 0.02%, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses). It is expected that the expense limits will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $150 | $157 | $274 | $616 |
| **Institutional Class** | 36 | 119 | 210 | 477 |
| **Class R-6** | 33 | 103 | 180 | 406 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $50 | $157 | $274 | $616 |

---

------

**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying funds' performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 35.2% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"), with a majority of the Fund's assets invested in index funds. 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of small, medium, and large market capitalization companies, fixed-income securities, domestic and foreign (including those in emerging markets) securities, securities denominated in foreign currencies, investment companies (including index funds), and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use equity index futures and options in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the Principal LifeTime Hybrid Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

------

![HybridFunds_bw.jpg](ck0000898745-20260227_g38.jpg)

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

------

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Futures.** Futures contracts involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the futures contract; possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

------

**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Class J shares (March 1, 2018), the performance shown in the table for is that of the Fund's Institutional Class shares, adjusted to reflect the respective fees and expenses of each class. These adjustments result in performance for such periods that is no higher than the historical performance of the Institutional Class shares.

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**Total Returns as of December 31**

![16565](ck0000898745-20260227_g46.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **17.28%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(18.83)%** |

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**Average Annual Total Returns**

**For the periods ended December 31, 2025**

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| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **18.53%** | **9.47%** | **10.44%** |
| **Institutional Class Return After Taxes on Distributions** | **16.94%** | **8.06%** | **9.27%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **11.68%** | **7.11%** | **8.23%** |
| **Class J Return Before Taxes** | **17.40%** | **9.30%** | **10.22%** |
| **Class R-6 Return Before Taxes** | **18.61%** | **9.50%** | **10.48%** |
| S&P 1500 Index (reflects no deduction for fees, expenses, or taxes) | 17.02% | 13.96% | 14.46% |
| S&P Target Date 2045 Index (reflects no deduction for fees, expenses, or taxes) | 19.48% | 9.84% | 10.54% |

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After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The S&P 1500 Index is the Fund's primary broad-based securities market index. The S&P Target Date 2045 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2014), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

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**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **J** | Initial Investment | $1000<sup>(1)</sup> |
| **J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

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<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

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**PRINCIPAL LIFETIME HYBRID 2050 FUND**

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

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| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-6** |
| Maximum Deferred Sales Charge (Load) <br>(as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |

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**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class**  | **Share Class**  | **Share Class**  |
| | **J** | **Inst.** | **R-6** |
| Management Fees | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | 0.15% | N/A | N/A |
| Other Expenses | 0.06% | 0.08% | 0.02% |
| Acquired Fund Fees and Expenses | 0.31% | 0.31% | 0.31% |
| **Total Annual Fund Operating Expenses** | **0.52%** | **0.39%** | **0.33%** |
| Expense Reimbursement <sup>(1)</sup> | N/A | (0.03)% | 0.00% |
| **Total Annual Fund Operating Expenses After Expense Reimbursement** | **0.52%** | **0.36%** | **0.33%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.05% for Institutional Class shares. In addition, for Class R-6 shares, the expense limit will maintain "Other Expenses" (expressed as a percent of average net assets on an annualized basis) not to exceed 0.02%, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses). It is expected that the expense limits will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $153 | $167 | $291 | $653 |
| **Institutional Class** | 37 | 122 | 216 | 490 |
| **Class R-6** | 34 | 106 | 185 | 418 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $53 | $167 | $291 | $653 |

---

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**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying funds' performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 33.7% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"), with a majority of the Fund's assets invested in index funds. 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of small, medium, and large market capitalization companies, fixed-income securities, domestic and foreign (including those in emerging markets) securities, securities denominated in foreign currencies, investment companies (including index funds), and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use equity index futures and options in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the Principal LifeTime Hybrid Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

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![HybridFunds_bw.jpg](ck0000898745-20260227_g38.jpg)

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

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**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Futures.** Futures contracts involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the futures contract; possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

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**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Class J shares (March 1, 2018), the performance shown in the table is that of the Fund's Institutional Class shares, adjusted to reflect the respective fees and expenses of each class. These adjustments result in performance for such periods that is no higher than the historical performance of the Institutional Class shares.

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**Total Returns as of December 31**

![16560](ck0000898745-20260227_g47.jpg)

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| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **18.00%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(19.78)%** |

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**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **19.63%** | **10.11%** | **10.88%** |
| **Institutional Class Return After Taxes on Distributions** | **18.10%** | **8.75%** | **9.73%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **12.38%** | **7.66%** | **8.62%** |
| **Class J Return Before Taxes** | **18.46%** | **9.91%** | **10.65%** |
| **Class R-6 Return Before Taxes** | **19.66%** | **10.14%** | **10.90%** |
| S&P 1500 Index (reflects no deduction for fees, expenses, or taxes) | 17.02% | 13.96% | 14.46% |
| S&P Target Date 2050 Index (reflects no deduction for fees, expenses, or taxes) | 19.56% | 10.13% | 10.79% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The S&P 1500 Index is the Fund's primary 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2014), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

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**Purchase and Sale of Fund Share**

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| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **J** | Initial Investment | $1000<sup>(1)</sup> |
| **J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

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<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

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**PRINCIPAL LIFETIME HYBRID 2055 FUND**

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

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| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-6** |
| Maximum Deferred Sales Charge (Load) <br>(as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |

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**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class**  | **Share Class**  | **Share Class**  |
| | **J** | **Inst.** | **R-6** |
| Management Fees | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | 0.15% | N/A | N/A |
| Other Expenses | 0.11% | 0.10% | 0.03% |
| Acquired Fund Fees and Expenses | 0.31% | 0.31% | 0.31% |
| **Total Annual Fund Operating Expenses** | **0.57%** | **0.41%** | **0.34%** |
| Expense Reimbursement <sup>(1)</sup> | N/A | (0.05)% | (0.01)% |
| **Total Annual Fund Operating Expenses After Expense Reimbursement** | **0.57%** | **0.36%** | **0.33%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.05% for Institutional Class shares. In addition, for Class R-6 shares, the expense limit will maintain "Other Expenses" (expressed as a percent of average net assets on an annualized basis) not to exceed 0.02%, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses). It is expected that the expense limits will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $158 | $183 | $318 | $714 |
| **Institutional Class** | 37 | 127 | 225 | 513 |
| **Class R-6** | 34 | 108 | 190 | 430 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $58 | $183 | $318 | $714 |

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**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying funds' performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 33.7% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"), with a majority of the Fund's assets invested in index funds. 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of small, medium, and large market capitalization companies, fixed-income securities, domestic and foreign (including those in emerging markets) securities, securities denominated in foreign currencies, investment companies (including index funds), and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use equity index futures and options in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the Principal LifeTime Hybrid Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

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![HybridFunds_bw.jpg](ck0000898745-20260227_g38.jpg)

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

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**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Futures.** Futures contracts involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the futures contract; possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

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**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Class J shares (March 1, 2018), the performance shown in the table is that of the Fund's Institutional Class shares, adjusted to reflect the respective fees and expenses of each class. These adjustments result in performance for such periods that is no higher than the historical performance of the Institutional Class shares.

------

**Total Returns as of December 31**

![16584](ck0000898745-20260227_g48.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **18.35%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(20.52)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **19.88%** | **10.27%** | **11.02%** |
| **Institutional Class Return After Taxes on Distributions** | **18.45%** | **8.98%** | **9.94%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **12.51%** | **7.81%** | **8.78%** |
| **Class J Return Before Taxes** | **18.59%** | **10.00%** | **10.75%** |
| **Class R-6 Return Before Taxes** | **19.94%** | **10.31%** | **11.05%** |
| S&P 1500 Index (reflects no deduction for fees, expenses, or taxes) | 17.02% | 13.96% | 14.46% |
| S&P Target Date 2055 Index (reflects no deduction for fees, expenses, or taxes) | 20.06% | 10.27% | 10.91% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The S&P 1500 Index is the Fund's primary broad-based securities market index. The S&P Target Date 2055 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2014), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

------

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **J** | Initial Investment | $1000<sup>(1)</sup> |
| **J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**PRINCIPAL LIFETIME HYBRID 2060 FUND**

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-6** |
| Maximum Deferred Sales Charge (Load) <br>(as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class**  | **Share Class**  | **Share Class**  |
| | **J** | **Inst.** | **R-6** |
| Management Fees | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | 0.15% | N/A | N/A |
| Other Expenses | 0.20% | 0.16% | 0.05% |
| Acquired Fund Fees and Expenses | 0.31% | 0.31% | 0.31% |
| **Total Annual Fund Operating Expenses** | **0.66%** | **0.47%** | **0.36%** |
| Expense Reimbursement <sup>(1)</sup> | (0.05)% | (0.11)% | (0.03)% |
| **Total Annual Fund Operating Expenses After Expense Reimbursement** | **0.61%** | **0.36%** | **0.33%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.30% for Class J and 0.05% for Institutional Class shares. In addition, for Class R-6 shares, the expense limit will maintain "Other Expenses" (expressed as a percent of average net assets on an annualized basis) not to exceed 0.02%, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses). It is expected that the expense limits will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $162 | $206 | $363 | $818 |
| **Institutional Class** | 37 | 140 | 252 | 581 |
| **Class R-6** | 34 | 113 | 199 | 453 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $62 | $206 | $363 | $818 |

---

------

**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying funds' performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 33.5% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"), with a majority of the Fund's assets invested in index funds. 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of small, medium, and large market capitalization companies, fixed-income securities, domestic and foreign (including those in emerging markets) securities, securities denominated in foreign currencies, investment companies (including index funds), and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use equity index futures and options in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the Principal LifeTime Hybrid Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

------

![HybridFunds_bw.jpg](ck0000898745-20260227_g38.jpg)

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

------

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Futures.** Futures contracts involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the futures contract; possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

------

**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Class J shares (March 1, 2018), the performance shown in the table is that of the Fund's Institutional Class shares, adjusted to reflect the respective fees and expenses of each class. These adjustments result in performance for such periods that is no higher than the historical performance of the Institutional Class shares.

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**Total Returns as of December 31**

![16588](ck0000898745-20260227_g49.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **18.71%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(20.90)%** |

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**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **19.90%** | **10.32%** | **11.14%** |
| **Institutional Class Return After Taxes on Distributions** | **18.54%** | **9.12%** | **10.12%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **12.49%** | **7.88%** | **8.89%** |
| **Class J Return Before Taxes** | **18.62%** | **10.05%** | **10.85%** |
| **Class R-6 Return Before Taxes** | **19.92%** | **10.35%** | **11.16%** |
| S&P 1500 Index (reflects no deduction for fees, expenses, or taxes) | 17.02% | 13.96% | 14.46% |
| S&P Target Date 2060 Index (reflects no deduction for fees, expenses, or taxes) | 19.94% | 10.26% | 10.98% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The S&P 1500 Index is the Fund's primary 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2014), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

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**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **J** | Initial Investment | $1000<sup>(1)</sup> |
| **J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

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<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

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**PRINCIPAL LIFETIME HYBRID 2065 FUND**

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

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| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-6** |
| Maximum Deferred Sales Charge (Load) <br>(as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |

---

**Annual Fund Operating Expenses**

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class**  | **Share Class**  | **Share Class**  |
| | **J** | **Inst.** | **R-6** |
| Management Fees | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | 0.15% | N/A | N/A |
| Other Expenses | 0.38% | 0.55% | 0.11% |
| Acquired Fund Fees and Expenses | 0.31% | 0.31% | 0.31% |
| **Total Annual Fund Operating Expenses** | **0.84%** | **0.86%** | **0.42%** |
| Expense Reimbursement <sup>(1)</sup> | (0.23)% | (0.50)% | (0.09)% |
| **Total Annual Fund Operating Expenses After Expense Reimbursement** | **0.61%** | **0.36%** | **0.33%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.30% for Class J and 0.05% for Institutional Class shares. In addition, for Class R-6 shares, the expense limit will maintain "Other Expenses" (expressed as a percent of average net assets on an annualized basis) not to exceed 0.02%, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses). It is expected that the expense limits will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $162 | $245 | $443 | $1016 |
| **Institutional Class** | 37 | 224 | 428 | 1014 |
| **Class R-6** | 34 | 126 | 226 | 521 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $62 | $245 | $443 | $1016 |

---

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**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying funds' performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 34.6% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"), with a majority of the Fund's assets invested in index funds. 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

In selecting underlying funds and target weights, the Fund considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of small, medium, and large market capitalization companies, fixed-income securities, domestic and foreign (including those in emerging markets) securities, securities denominated in foreign currencies, investment companies (including index funds), and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use equity index futures and options in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the Principal LifeTime Hybrid Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

------

![HybridFunds_bw.jpg](ck0000898745-20260227_g38.jpg)

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

------

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Futures.** Futures contracts involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the futures contract; possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

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**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

Life of Fund returns are measured from the date the Fund's shares were first sold (September 6, 2017).

For periods prior to the inception date of Class J shares (March 1, 2018), the performance shown in the table for Class J shares is that of the Fund's Institutional Class shares, adjusted to reflect the fees and expenses of Class J shares. These adjustments result in performance for such periods that is no higher than the historical performance of the Institutional Class shares, which were first sold on September 6, 2017.

During 2018, Class R-6 experienced a one-time loss of approximately $0.33 per share as a result of a large redemption. If such loss had not been recognized, the total return amounts expressed herein would have been higher. During May of 2019, Class R-6 experienced a one-time gain of approximately $0.35 per share as a result of a reimbursement by PGI, the investment advisor. If such gain had not been recognized, the total return amounts expressed herein would have been lower.

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**Total Returns as of December 31**

![17013](ck0000898745-20260227_g50.jpg)

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| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **19.12%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(21.10)%** |

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**Average Annual Total Returns**

**For the periods ended December 31, 2025**

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **Life of Fund** | |
| **Institutional Class Return Before Taxes** | **19.91%** | **10.36%** | **10.79%** |  |
| **Institutional Class Return After Taxes on Distributions** | **18.68%** | **9.33%** | **9.84%** |  |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **12.40%** | **7.95%** | **8.51%** |  |
| **Class J Return Before Taxes** | **18.62%** | **10.06%** | **10.49%** |  |
| **Class R-6 Return Before Taxes** | **19.88%** | **10.38%** | **10.82%** | <sup>(1)(2)</sup> |
| S&P 1500 Index (reflects no deduction for fees, expenses, or taxes) | 17.02% | 13.96% | 14.49% |  |
| S&P Target Date 2065+ Index (reflects no deduction for fees, expenses, or taxes) | 20.17% | 10.43% | 10.66% |  |

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<sup>(1)</sup> During 2018, Class R-6 experienced a one-time loss of approximately $0.33 per share as a result of a large redemption. If such loss had not been recognized, the total return amounts expressed herein would have been higher.

<sup>(2)</sup> During May of 2019, Class R-6 experienced a one-time gain of approximately $0.35 per share as a result of a reimbursement by PGI, the investment advisor. If such gain had not been recognized, the total return amounts expressed herein would have been lower.

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The S&P 1500 Index is the Fund's primary broad-based securities market index. The S&P Target Date 2065+ 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2017), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2017), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

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**Purchase and Sale of Fund Shares**

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| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **J** | Initial Investment | $1000<sup>(1)</sup> |
| **J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

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<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

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**PRINCIPAL LIFETIME HYBRID 2070 FUND**

**Objective**

The Fund seeks a total return consisting of long-term growth of capital and current income.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

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| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-6** |
| Maximum Deferred Sales Charge (Load) <br>(as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |

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**Annual Fund Operating Expenses**

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class**  | **Share Class**  | **Share Class**  |
| | **J** | **Inst.** | **R-6** |
| Management Fees | 0.00% | 0.00% | 0.00% |
| Distribution and/or Service (12b-1) Fees | 0.15% | N/A | N/A |
| Other Expenses | 1.34% | 1.60% | 0.79% |
| Acquired Fund Fees and Expenses | 0.31% | 0.31% | 0.31% |
| **Total Annual Fund Operating Expenses** | **1.80%** | **1.91%** | **1.10%** |
| Expense Reimbursement <sup>(1)</sup> | (1.19)% | (1.55)% | (0.77)% |
| **Total Annual Fund Operating Expenses After Expense Reimbursement** | **0.61%** | **0.36%** | **0.33%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.30% for Class J and 0.05% for Institutional Class shares. In addition, for Class R-6 shares, the expense limit will maintain "Other Expenses" (expressed as a percent of average net assets on an annualized basis) not to exceed 0.02%, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses). It is expected that the expense limits will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $162 | $450 | $863 | $2018 |
| **Institutional Class** | 37 | 449 | 887 | 2106 |
| **Class R-6** | 34 | 273 | 531 | 1271 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $62 | $450 | $863 | $2018 |

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**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying funds' performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 49.5% of the average value of its portfolio.

**Principal Investment Strategies**

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. The Fund is a fund of funds and invests in underlying funds of Principal Exchange-Traded Funds ("PETF") and Principal Funds, Inc. ("PFI"), with a majority of the Fund's assets invested in index funds. 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. The Fund may add, remove, or substitute underlying funds at any time.

The Fund is managed with strategic or long-term asset class targets and target ranges. There is a rebalancing strategy that aligns with the target weights to identify asset classes that are either overweight or underweight. The Fund may shift asset class targets in response to normal evaluative processes, the shortening time horizon of the Fund, or changes in market forces or Fund circumstances.

In selecting underlying funds and target weights, Principal Global Investors, LLC ("PGI"), the Fund's investment advisor, considers both quantitative measures (e.g., past performance, expected levels of risk and returns, expense levels, diversification, and style consistency) and qualitative factors (e.g., organizational stability, investment experience, investment and risk management processes, and information, trading, and compliance systems). There are no minimum or maximum percentages of assets that the Fund must invest in a specific asset class or underlying fund.

The underlying funds invest in growth and value stocks of small, medium, and large market capitalization companies, fixed-income securities, domestic and foreign (including those in emerging markets) securities, securities denominated in foreign currencies, investment companies (including index funds), and derivatives. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. The underlying funds principally use equity index futures and options in order to gain exposure to a variety of securities or asset classes or attempt to reduce risk.

The Fund's asset allocation will become more conservative as the Fund reaches its stated target year and the Fund's strategy becomes more risk adverse. Approximately 10 years after its target year, the Fund's underlying fund allocation is expected to match that of the Principal LifeTime Hybrid Income Fund. At that time, the Fund may be combined with the Principal LifeTime Hybrid Income Fund if the Board of Directors determines that the combination is in the best interests of Fund shareholders. It is expected that at the target date in the Fund's name, the shareholder will begin gradually withdrawing the account's value.

------

![HybridFunds_bw.jpg](ck0000898745-20260227_g38.jpg)

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Target Date Fund Risk.** A target date fund should not be selected based solely on age or retirement date because there is no guarantee that this Fund will provide adequate income at or through retirement.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

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**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Futures.** Futures contracts involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the futures contract; possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

• **Options.** Options involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the options; counterparty risk; difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets); and an insufficient liquid secondary market for particular options.

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

------

**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

Life of Fund returns are measured from the date the Fund's shares were first sold (March 1, 2023).

**Total Returns as of December 31**

![2199023298162](ck0000898745-20260227_g51.jpg)

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| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2025** | **9.93%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2025** | **(1.56)%** |

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**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | |
|:---|:---|:---|
| | **1 Year** | **Life of Fund** |
| **Institutional Class Return Before Taxes** | **19.86%** | **18.10%** |
| **Institutional Class Return After Taxes on Distributions** | **18.84%** | **17.23%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **12.21%** | **14.03%** |
| **Class J Return Before Taxes** | **18.53%** | **18.33%** |
| **Class R-6 Return Before Taxes** | **19.83%** | **18.15%** |
| S&P 1500 Index (reflects no deduction for fees, expenses, or taxes) | 17.02% | 21.98% |
| S&P Target Date 2065+ Index (reflects no deduction for fees, expenses, or taxes) | 20.17% | 17.68% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The S&P 1500 Index is the Fund's primary broad-based securities market index. The S&P Target Date 2065+ 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2023), Portfolio Manager

• Todd A. Jablonski (since 2025), Portfolio Manager

• Chad Severin (since 2025), Portfolio Manager

• Scott Smith (since 2023), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **J** | Initial Investment | $1000<sup>(1)</sup> |
| **J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchasers. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**REAL ESTATE SECURITIES FUND**

**Objective**

The Fund seeks to generate a total return.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Maximum Sales Charge (Load) Imposed on Purchases <br>(as a percentage of offering price) | 5.50% |  |  |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% | 1.00% |  |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Management Fees | 0.79% | 0.79% | 0.79% | 0.79% | 0.79% | 0.79% | 0.79% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 1.00% | 0.15% | N/A | 0.25% | N/A | N/A |
| Other Expenses | 0.15% | 0.28% | 0.15% | 0.11% | 0.33% | 0.27% | 0.02% |
| **Total Annual Fund Operating Expenses** | **1.19%** | **2.07%** | **1.09%** | **0.90%** | **1.37%** | **1.06%** | **0.81%** |
| Expense Reimbursement <sup>(1)</sup> | N/A | N/A | N/A | (0.04)% | N/A | N/A | N/A |
| **Total Annual Fund Operating Expenses after Expense Reimbursement** | **1.19%** | **2.07%** | **1.09%** | **0.86%** | **1.37%** | **1.06%** | **0.81%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.86% for Institutional Class shares. It is expected that the expense limit will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limit prior to the end of the period. Subject to applicable expense limits, he Fund may reimburse PGI for expenses incurred during the current fiscal year.

------

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example assumes conversion of the Class C shares to Class A shares after the eighth year. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $665 | $907 | $1168 | $1914 |
| **Class C** | 310 | 649 | 1114 | 2174 |
| **Class J** | 211 | 347 | 601 | 1329 |
| **Institutional Class** | 88 | 283 | 495 | 1104 |
| **Class R-3** | 139 | 434 | 750 | 1646 |
| **Class R-5** | 108 | 337 | 585 | 1294 |
| **Class R-6** | 83 | 259 | 450 | 1002 |

---

With respect to Classes C and J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class C** | $210 | $649 | $1114 | $2174 |
| **Class J** | 111 | 347 | 601 | 1329 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 18.5% of the average value of its portfolio.

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies principally engaged in the real estate industry. A real estate company has at least 50% of its assets, income, or profits derived from products or services related to 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.

REITs are pooled investment vehicles that invest in income-producing real estate, real estate-related loans, or other types of real estate interests. REITs are corporations or business trusts that are permitted to eliminate corporate level federal income taxes by meeting certain requirements of the Internal Revenue Code.

The Fund invests in equity securities regardless of market capitalization (small, medium, or large). The Fund invests in growth and value equity securities. The Fund concentrates its investments (invest more than 25% of its net assets) in securities in the real estate industry.

The Fund is considered non-diversified, which means it can invest a higher percentage of assets in securities of individual issuers than a diversified fund. As a result, changes in the value of a single investment could cause greater fluctuations in the Fund's share price than would occur in a more diversified fund.

------

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Industry Concentration Risk.** A fund that concentrates investments in a particular industry or group of industries has greater exposure than other funds to market, economic, and other factors affecting that industry or group of industries.

• **Real Estate.** A fund concentrating in the real estate industry is subject to the risks associated with direct ownership of real estate, securities of companies in the real estate industry, and/or real estate investment trusts. These risks are explained more fully below in Real Estate Investment Trusts (REITs) Risk and Real Estate Securities Risk.

**Non-Diversification Risk.** A non-diversified fund may invest a high percentage of its assets in the securities of a small number of issuers and is more likely than diversified funds to be significantly affected by a specific security's poor performance.

**Real Estate Investment Trusts ("REITs") Risk.** In addition to risks associated with investing in real estate securities, REITs are dependent upon management skills, are not diversified, and are subject to heavy cash flow dependency, risks of default by borrowers, and self-liquidation. Investment in REITs also involves risks similar to risks of investing in small market capitalization companies, such as limited financial resources, less frequent and limited volume trading, and may be subject to more abrupt or erratic price movements than larger company securities. A REIT could fail to qualify for tax-free pass-through of income under the Internal Revenue Code. Fund shareholders will indirectly bear their proportionate share of the expenses of REITs in which the fund invests.

**Real Estate Securities Risk.** Investing in real estate securities subjects the fund to the risks associated with the real estate market (which are similar to the risks associated with direct ownership in real estate), including declines in real estate values, loss due to casualty or condemnation, property taxes, interest rate changes, increased expenses, cash flow of underlying real estate assets, regulatory changes (including zoning, land use, and rents), and environmental problems, as well as to the risks related to the management skill and creditworthiness of the issuer.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

------

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Class R-6 shares (November 22, 2016), the performance shown in the table for Class R-6 shares is that of the Fund's Class R-3 shares, adjusted to reflect the fees and expenses of Class R-6 shares. However, where the adjustment for fees and expenses results in performance for Class R-6 shares that is higher than the historical performance of the Class R-3 shares, the historical performance of the Class R-3 shares is used. These adjustments result in performance for such periods that is no higher than the historical performance of the Class R-3 shares.

**Total Returns as of December 31**

![12329](ck0000898745-20260227_g52.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q1 2019** | **17.29%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(22.76)%** |

---

------

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **(4.69)%** | **3.26%** | **4.92%** |
| **Class A Return After Taxes on Distributions** | **(5.41)%** | **2.34%** | **3.95%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **(2.61)%** | **2.32%** | **3.62%** |
| **Class C Return Before Taxes** | **(1.02)%** | **3.57%** | **4.84%** |
| **Class J Return Before Taxes** | **0.00%** | **4.56%** | **5.65%** |
| **Institutional Class Return Before Taxes** | **1.20%** | **4.79%** | **5.89%** |
| **Class R-3 Return Before Taxes** | **0.69%** | **4.27%** | **5.37%** |
| **Class R-5 Return Before Taxes** | **1.02%** | **4.59%** | **5.69%** |
| **Class R-6 Return Before Taxes** | **1.25%** | **4.85%** | **5.90%** |
| Russell 3000 Index (reflects no deduction for fees, expenses, or taxes) | 17.15% | 13.15% | 14.29% |
| FTSE NAREIT All Equity REIT Index (reflects no deduction for fees, expenses, or taxes) | 2.27% | 4.85% | 5.77% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

The Russell 3000 Index is the Fund's primary 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.

**Investment Advisor**

Principal Global Investors, LLC

**Sub-Advisor and Portfolio Managers** 

Principal Real Estate Investors, LLC

• Keith Bokota (since 2013), Portfolio Manager

• Anthony Kenkel (since 2012), Portfolio Manager

• Kelly D. Rush (since 2000), Portfolio Manager

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A, C, and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A, C, and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A, C, and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, R-5, and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchases. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

Class C shares are subject to an 8-year automatic conversion plan whereby Class C shares held for eight years after purchase will automatically convert to Class A shares of the same Fund.

See Purchase of Fund Shares for more information.

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

------

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**SAM (STRATEGIC ASSET MANAGEMENT) BALANCED PORTFOLIO**

**Objective**

The Fund seeks to provide as high a level of total return (consisting of reinvested income and capital appreciation) as is consistent with reasonable risk.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** |
| Maximum Sales Charge (Load) Imposed on Purchases <br>(as a percentage of offering price) | 5.50% |  |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% | 1.00% |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.27% | 0.27% | 0.27% | 0.27% | 0.27% | 0.27% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 1.00% | 0.15% | N/A | 0.25% | N/A |
| Other Expenses | 0.07% | 0.09% | 0.03% | 0.02% | 0.33% | 0.27% |
| Acquired Fund Fees and Expenses | 0.46% | 0.46% | 0.46% | 0.46% | 0.46% | 0.46% |
| **Total Annual Fund Operating Expenses** | **1.05%** | **1.82%** | **0.91%** | **0.75%** | **1.31%** | **1.00%** |

---

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example assumes conversion of the Class C shares to Class A shares after the eighth year. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $651 | $866 | $1098 | $1762 |
| **Class C** | 285 | 573 | 985 | 1935 |
| **Class J** | 193 | 290 | 504 | 1120 |
| **Institutional Class** | 77 | 240 | 417 | 930 |
| **Class R-3** | 133 | 415 | 718 | 1579 |
| **Class R-5** | 102 | 318 | 552 | 1225 |

---

With respect to Classes C and J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class C** | $185 | $573 | $985 | $1935 |
| **Class J** | 93 | 290 | 504 | 1120 |

---

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**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying funds' performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 44.7% of the average value of its portfolio.

**Principal Investment Strategies**

The SAM Portfolios operate as funds of funds and invest principally in funds and exchange-traded funds ("ETFs") of Principal Funds, Inc. and Principal Exchange-Traded Funds ("Underlying Funds"). Each SAM Portfolio generally categorizes each Underlying Fund as a fixed-income, equity, or specialty fund based on its investment profile. Each SAM Portfolio typically allocates its assets among Underlying Funds, and within predetermined percentage ranges, as determined by the SAM Portfolio in accordance with its outlook for the economy, the financial markets, and the relative market valuations of the Underlying Funds. The asset class diversification of the SAM Portfolio is designed to moderate overall price volatility and cushion severe losses in any one investment sector.

The Fund generally invests:

• between 20% and 60% of its assets in fixed-income funds, and less than 40% in any one fixed-income fund; such funds generally invest in fixed-income instruments such as corporate bonds;

• between 40% and 80% of its assets in equity funds, and less than 30% in any one equity fund; such funds generally invest in equity securities of domestic and foreign companies (including in emerging markets), including small, medium, and large market capitalization companies, and growth and value stock; and

• less than 20% of its assets in specialty funds, and less than 20% in any one specialty fund; such funds generally offer unique combinations of traditional equity securities and fixed-income securities or use alternative investment strategies that aim to offer diversification beyond traditional equity and fixed-income securities and include investments in such assets as infrastructure, commodities, currencies, and natural resources companies.

The Fund may temporarily exceed these percentage ranges and may alter the percentage ranges when it deems appropriate.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

------

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

------

**Total Returns as of December 31**

![12391](ck0000898745-20260227_g53.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **13.09%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(15.43)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **7.32%** | **5.66%** | **7.25%** |
| **Class A Return After Taxes on Distributions** | **4.44%** | **3.73%** | **5.53%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **5.76%** | **4.02%** | **5.37%** |
| **Class C Return Before Taxes** | **11.73%** | **6.04%** | **7.20%** |
| **Class J Return Before Taxes** | **12.71%** | **7.02%** | **8.03%** |
| **Institutional Class Return Before Taxes** | **13.88%** | **7.19%** | **8.19%** |
| **Class R-3 Return Before Taxes** | **13.29%** | **6.59%** | **7.59%** |
| **Class R-5 Return Before Taxes** | **13.63%** | **6.93%** | **7.93%** |
| MSCI ACWI Index NTR (reflects withholding taxes on foreign dividends, but no deduction for fees, expenses, or other taxes) | 22.34% | 11.19% | 11.72% |
| Russell 3000 Index (reflects no deduction for fees, expenses, or taxes) | 17.15% | 13.15% | 14.29% |
| SAM Balanced Blended Index (except as noted for MSCI ACWI Index NTR, reflects no deduction for fees, expenses, or taxes) | 16.22% | 6.57% | 7.96% |
| &nbsp;&nbsp;&nbsp;MSCI ACWI Index NTR (reflects withholding taxes on foreign dividends, but no deduction for fees, expenses, or other taxes) | 22.34% | 11.19% | 11.72% |
| &nbsp;&nbsp;&nbsp;Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| SAM Balanced Blended Index (except as noted for MSCI EAFE Index NTR, reflects no deduction for fees, expenses, or taxes) | 15.26% | 7.15% | 8.61% |
| &nbsp;&nbsp;&nbsp;Russell 3000 Index (reflects no deduction for fees, expenses, or taxes) | 17.15% | 13.15% | 14.29% |
| &nbsp;&nbsp;&nbsp;Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| &nbsp;&nbsp;&nbsp;MSCI EAFE Index NTR (reflects withholding taxes on foreign dividends, but no deduction for fees, expenses, or other taxes) | 31.22% | 8.92% | 8.18% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

------

Effective March 1, 2026, the Fund changed its primary broad-based securities market index to the MSCI ACWI Index NTR because it more closely aligns with the Fund's investment approach. Prior to March 1, 2026, the Fund's primary broad-based securities market index was the Russell 3000 Index. The SAM Balanced Blended Index is included as an additional index for the Fund as it shows how the Fund's performance compares with returns of indices of funds with similar investment objectives. Performance of each component of the blended index is also shown. Effective as of March 1, 2026, the Fund changed the weightings of the SAM Balanced Blended Index to the following because such weightings more closely align with the Fund's investment approach: 60% MSCI ACWI Index NTR and 40% Bloomberg US Aggregate Index. Prior to March 1, 2026, the components and weightings of the SAM Balanced Blended Index were as follows: 45% Russell 3000 Index, 40% Bloomberg US Aggregate Index, and 15% MSCI EAFE Index NTR. The blended index returns reflect the allocations described in the preceding sentences and are as of December 31, 2025.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• Brody Dass (since 2022), Portfolio Manager

• Todd A. Jablonski (since 2010), Portfolio Manager

• Yesim Tokat-Acikel (since 2023), Portfolio Manager

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A, C, and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A, C, and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A, C, and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, and R-5** | There are no minimum initial or subsequent investment requirements for eligible purchases. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

Class C shares are subject to an 8-year automatic conversion plan whereby Class C shares held for eight years after purchase will automatically convert to Class A shares of the same Fund. See Purchase of Fund Shares for more information.

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**SAM (STRATEGIC ASSET MANAGEMENT) CONSERVATIVE BALANCED PORTFOLIO**

**Objective**

The Fund seeks to provide a high level of total return (consisting of reinvestment of income and capital appreciation), consistent with a moderate degree of principal risk.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** |
| Maximum Sales Charge (Load) Imposed on Purchases <br>(as a percentage of offering price) | 5.50% |  |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% | 1.00% |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.27% | 0.27% | 0.27% | 0.27% | 0.27% | 0.27% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 1.00% | 0.15% | N/A | 0.25% | N/A |
| Other Expenses | 0.07% | 0.12% | 0.02% | 0.03% | 0.33% | 0.27% |
| Acquired Fund Fees and Expenses | 0.43% | 0.43% | 0.43% | 0.43% | 0.43% | 0.43% |
| **Total Annual Fund Operating Expenses** | **1.02%** | **1.82%** | **0.87%** | **0.73%** | **1.28%** | **0.97%** |

---

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example assumes conversion of the Class C shares to Class A shares after the eighth year. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $648 | $857 | $1082 | $1729 |
| **Class C** | 285 | 573 | 985 | 1927 |
| **Class J** | 189 | 278 | 482 | 1073 |
| **Institutional Class** | 75 | 233 | 406 | 906 |
| **Class R-3** | 130 | 406 | 702 | 1545 |
| **Class R-5** | 99 | 309 | 536 | 1190 |

---

With respect to Classes C and J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class C** | $185 | $573 | $985 | $1927 |
| **Class J** | 89 | 278 | 482 | 1073 |

---

------

**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 32.3% of the average value of its portfolio.

**Principal Investment Strategies**

The SAM Portfolios operate as funds of funds and invest principally in funds and exchange-traded funds ("ETFs") of Principal Funds, Inc. and Principal Exchange-Traded Funds ("Underlying Funds"). Each SAM Portfolio generally categorizes each Underlying Fund as a fixed-income, equity, or specialty fund based on its investment profile. Each SAM Portfolio typically allocates its assets among Underlying Funds, and within predetermined percentage ranges, as determined by the SAM Portfolio in accordance with its outlook for the economy, the financial markets, and the relative market valuations of the Underlying Funds. The asset class diversification of the SAM Portfolio is designed to moderate overall price volatility and cushion severe losses in any one investment sector.

The Fund generally invests:

• between 40% and 80% of its assets in fixed-income funds, and less than 40% in any one fixed-income fund; such funds generally invest in fixed-income instruments such as high yield securities (or "junk" bonds), securitized products, and corporate bonds;

• between 20% and 60% of its assets in equity funds, and less than 30% in any one equity fund; such funds generally invest in equity securities of domestic and foreign companies (including in emerging markets), including small, medium, and large market capitalization companies, and growth and value stock; and

• less than 20% of its assets in specialty funds, and less than 20% in any one specialty fund; such funds generally offer unique combinations of traditional equity securities and fixed-income securities or use alternative investment strategies that aim to offer diversification beyond traditional equity and fixed-income securities and include investments in such assets as infrastructure, commodities, currencies, and natural resources companies.

The Fund may temporarily exceed these percentage ranges and may alter the percentage ranges when it deems appropriate.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

------

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**High Yield Securities Risk.** High yield fixed-income securities (commonly referred to as "junk bonds") are subject to greater credit quality risk than higher rated fixed-income securities and should be considered speculative.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Securitized Products Risk.** Investments in securitized products are subject to risks similar to traditional fixed-income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Unscheduled prepayments on securitized products may have to be reinvested at lower rates. A reduction in prepayments may increase the effective maturities of these securities, exposing them to the risk of decline in market value over time (extension risk).

------

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

**Total Returns as of December 31**

![12687](ck0000898745-20260227_g54.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **10.32%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(11.74)%** |

---

------

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **5.07%** | **3.46%** | **5.33%** |
| **Class A Return After Taxes on Distributions** | **2.79%** | **1.98%** | **3.93%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **3.91%** | **2.29%** | **3.80%** |
| **Class C Return Before Taxes** | **9.36%** | **3.83%** | **5.29%** |
| **Class J Return Before Taxes** | **10.44%** | **4.83%** | **6.12%** |
| **Institutional Class Return Before Taxes** | **11.62%** | **4.96%** | **6.26%** |
| **Class R-3 Return Before Taxes** | **10.97%** | **4.39%** | **5.68%** |
| **Class R-5 Return Before Taxes** | **11.38%** | **4.72%** | **6.01%** |
| Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| SAM Conservative Balanced Blended Index (except as noted for MSCI ACWI Index NTR, reflects no deduction for fees, expenses, or taxes) | 13.21% | 4.26% | 6.02% |
| &nbsp;&nbsp;&nbsp;Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| &nbsp;&nbsp;&nbsp;MSCI ACWI Index NTR (reflects withholding taxes on foreign dividends, but no deduction for fees, expenses, or other taxes) | 22.34% | 11.19% | 11.72% |
| SAM Conservative Balanced Blended Index (except as noted for MSCI EAFE Index NTR, reflects no deduction for fees, expenses, or taxes) | 12.59% | 4.64% | 6.45% |
| &nbsp;&nbsp;&nbsp;Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| &nbsp;&nbsp;&nbsp;Russell 3000 Index (reflects no deduction for fees, expenses, or taxes) | 17.15% | 13.15% | 14.29% |
| &nbsp;&nbsp;&nbsp;MSCI EAFE Index NTR (reflects withholding taxes on foreign dividends, but no deduction for fees, expenses, or other taxes) | 31.22% | 8.92% | 8.18% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

The Bloomberg US Aggregate Index is the Fund's primary broad-based securities market index. The SAM Conservative Balanced Blended Index is included as an additional index for the Fund as it shows how the Fund's performance compares with returns of indices of funds with similar investment objectives. Performance of each component of the blended index is also shown. Effective as of March 1, 2026, the Fund changed the weightings of the SAM Conservative Balanced Blended Index to the following because such weightings more closely align with the Fund's investment approach: 60% Bloomberg US Aggregate Index and 40% MSCI ACWI Index NTR. Prior to March 1, 2026, the components and weightings of the SAM Conservative Balanced Blended Index were as follows: 60% Bloomberg US Aggregate Index, 30% Russell 3000 Index, and 10% MSCI EAFE Index NTR. The blended index returns reflect the allocations described in the preceding sentences and are as of December 31, 2025.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• Brody Dass (since 2022), Portfolio Manager

• Todd A. Jablonski (since 2010), Portfolio Manager

• Yesim Tokat-Acikel (since 2023), Portfolio Manager

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A, C, and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A, C, and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A, C, and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, and R-5** | There are no minimum initial or subsequent investment requirements for eligible purchases. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

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Class C shares are subject to an 8-year automatic conversion plan whereby Class C shares held for eight years after purchase will automatically convert to Class A shares of the same Fund. See Purchase of Fund Shares for more information.

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

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**SAM (STRATEGIC ASSET MANAGEMENT) CONSERVATIVE GROWTH PORTFOLIO**

**Objective**

The Fund seeks to provide long-term capital appreciation.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** |
| Maximum Sales Charge (Load) Imposed on Purchases <br>(as a percentage of offering price) | 5.50% |  |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% | 1.00% |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.27% | 0.27% | 0.27% | 0.27% | 0.27% | 0.27% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 1.00% | 0.15% | N/A | 0.25% | N/A |
| Other Expenses | 0.07% | 0.09% | 0.03% | 0.03% | 0.33% | 0.27% |
| Acquired Fund Fees and Expenses | 0.49% | 0.49% | 0.49% | 0.49% | 0.49% | 0.49% |
| **Total Annual Fund Operating Expenses** | **1.08%** | **1.85%** | **0.94%** | **0.79%** | **1.34%** | **1.03%** |

---

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example assumes conversion of the Class C shares to Class A shares after the eighth year. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $654 | $875 | $1113 | $1795 |
| **Class C** | 288 | 582 | 1001 | 1968 |
| **Class J** | 196 | 300 | 520 | 1155 |
| **Institutional Class** | 81 | 252 | 439 | 978 |
| **Class R-3** | 136 | 425 | 734 | 1613 |
| **Class R-5** | 105 | 328 | 569 | 1259 |

---

With respect to Classes C and J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class C** | $188 | $582 | $1001 | $1968 |
| **Class J** | 96 | 300 | 520 | 1155 |

---

------

**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 41.9% of the average value of its portfolio.

**Principal Investment Strategies**

The SAM Portfolios operate as funds of funds and invest principally in funds and exchange-traded funds ("ETFs") of Principal Funds, Inc. and Principal Exchange-Traded Funds ("Underlying Funds"). Each SAM Portfolio generally categorizes each Underlying Fund as a fixed-income, equity, or specialty fund based on its investment profile. Each SAM Portfolio typically allocates its assets among Underlying Funds, and within predetermined percentage ranges, as determined by the SAM Portfolio in accordance with its outlook for the economy, the financial markets, and the relative market valuations of the Underlying Funds. The asset class diversification of the SAM Portfolio is designed to moderate overall price volatility and cushion severe losses in any one investment sector.

The Fund generally invests:

• between 0% and 40% of its assets in fixed-income funds, and less than 30% in any one fixed-income fund; such funds generally invest in fixed-income instruments such as corporate bonds;

• between 60% and 100% of its assets in equity funds, and less than 40% in any one equity fund; such funds generally invest in equity securities of domestic and foreign companies (including in emerging markets), including small, medium, and large market capitalization companies, and growth and value stock; and

• less than 20% of its assets in specialty funds, and less than 20% in any one specialty fund; such funds generally offer unique combinations of traditional equity securities and fixed-income securities or use alternative investment strategies that aim to offer diversification beyond traditional equity and fixed-income securities and include investments in such assets as infrastructure, commodities, currencies, and natural resources companies.

The Fund may temporarily exceed these percentage ranges and may alter the percentage ranges when it deems appropriate.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

------

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

------

**Total Returns as of December 31**

![11702](ck0000898745-20260227_g55.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **15.98%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(19.15)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **8.85%** | **7.37%** | **8.90%** |
| **Class A Return After Taxes on Distributions** | **5.54%** | **5.33%** | **7.05%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **7.26%** | **5.44%** | **6.77%** |
| **Class C Return Before Taxes** | **13.24%** | **7.74%** | **8.84%** |
| **Class J Return Before Taxes** | **14.33%** | **8.77%** | **9.69%** |
| **Institutional Class Return Before Taxes** | **15.44%** | **8.93%** | **9.86%** |
| **Class R-3 Return Before Taxes** | **14.88%** | **8.33%** | **9.26%** |
| **Class R-5 Return Before Taxes** | **15.22%** | **8.66%** | **9.59%** |
| MSCI ACWI Index NTR (reflects withholding taxes on foreign dividends, but no deduction for fees, expenses, or other taxes) | 22.34% | 11.19% | 11.72% |
| Russell 3000 Index (reflects no deduction for fees, expenses, or taxes) | 17.15% | 13.15% | 14.29% |
| SAM Conservative Growth Blended Index (except as noted for MSCI ACWI Index NTR, reflects no deduction for fees, expenses, or taxes) | 19.26% | 8.88% | 9.87% |
| &nbsp;&nbsp;&nbsp;MSCI ACWI Index NTR (reflects withholding taxes on foreign dividends, but no deduction for fees, expenses, or other taxes) | 22.34% | 11.19% | 11.72% |
| &nbsp;&nbsp;&nbsp;Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| SAM Conservative Growth Blended Index (except as noted for MSCI EAFE Index NTR, reflects no deduction for fees, expenses, or taxes) | 17.95% | 9.66% | 10.73% |
| &nbsp;&nbsp;&nbsp;Russell 3000 Index (reflects no deduction for fees, expenses, or taxes) | 17.15% | 13.15% | 14.29% |
| &nbsp;&nbsp;&nbsp;MSCI EAFE Index NTR (reflects withholding taxes on foreign dividends, but no deduction for fees, expenses, or other taxes) | 31.22% | 8.92% | 8.18% |
| &nbsp;&nbsp;&nbsp;Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

------

Effective March 1, 2026, the Fund changed its primary broad-based securities market index to the MSCI ACWI Index NTR because it more closely aligns with the Fund's investment approach. Prior to March 1, 2026, the Fund's primary broad-based securities market index was the Russell 3000 Index. The SAM Conservative Growth Blended Index is included as an additional index for the Fund as it shows how the Fund's performance compares with returns of indices of funds with similar investment objectives. Performance of each component of the blended index is also shown. Effective as of March 1, 2026, the Fund changed the weightings of the SAM Conservative Growth Blended Index to the following because such weightings more closely align with the Fund's investment approach: 80% MSCI ACWI Index NTR and 20% Bloomberg US Aggregate Index. Prior to March 1, 2026, the components and weightings of the SAM Conservative Growth Blended Index were as follows: 60% Russell 3000 Index, 20% Bloomberg US Aggregate Index, and 20% MSCI EAFE Index NTR. The blended index returns reflect the allocations described in the preceding sentences and are as of December 31, 2025.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• Brody Dass (since 2022), Portfolio Manager

• Todd A. Jablonski (since 2010), Portfolio Manager

• Yesim Tokat-Acikel (since 2023), Portfolio Manager

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A, C, and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A, C, and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A, C, and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, and R-5** | There are no minimum initial or subsequent investment requirements for eligible purchases. | N/A |

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<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

Class C shares are subject to an 8-year automatic conversion plan whereby Class C shares held for eight years after purchase will automatically convert to Class A shares of the same Fund. See Purchase of Fund Shares for more information.

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

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**SAM (STRATEGIC ASSET MANAGEMENT) FLEXIBLE INCOME PORTFOLIO**

**Objective**

The Fund seeks to provide a high level of total return (consisting of reinvestment of income with some capital appreciation).

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** |
| Maximum Sales Charge (Load) Imposed on Purchases <br>(as a percentage of offering price) | 3.75% |  |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% | 1.00% |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.27% | 0.27% | 0.27% | 0.27% | 0.27% | 0.27% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 1.00% | 0.15% | N/A | 0.25% | N/A |
| Other Expenses | 0.07% | 0.11% | 0.02% | 0.05% | 0.33% | 0.27% |
| Acquired Fund Fees and Expenses | 0.41% | 0.41% | 0.41% | 0.41% | 0.41% | 0.41% |
| **Total Annual Fund Operating Expenses** | **1.00%** | **1.79%** | **0.85%** | **0.73%** | **1.26%** | **0.95%** |

---

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example assumes conversion of the Class C shares to Class A shares after the eighth year. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $473 | $681 | $907 | $1554 |
| **Class C** | 282 | 563 | 970 | 1897 |
| **Class J** | 187 | 271 | 471 | 1049 |
| **Institutional Class** | 75 | 233 | 406 | 906 |
| **Class R-3** | 128 | 400 | 692 | 1523 |
| **Class R-5** | 97 | 303 | 525 | 1166 |

---

With respect to Classes C and J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class C** | $182 | $563 | $970 | $1897 |
| **Class J** | 87 | 271 | 471 | 1049 |

---

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**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 23.9% of the average value of its portfolio.

**Principal Investment Strategies**

The SAM Portfolios operate as funds of funds and invest principally in funds and exchange-traded funds ("ETFs") of Principal Funds, Inc. and Principal Exchange-Traded Funds ("Underlying Funds"). Each SAM Portfolio generally categorizes each Underlying Fund as a fixed-income, equity, or specialty fund based on its investment profile. Each SAM Portfolio typically allocates its assets among Underlying Funds, and within predetermined percentage ranges, as determined by the SAM Portfolio in accordance with its outlook for the economy, the financial markets, and the relative market valuations of the Underlying Funds. The asset class diversification of the SAM Portfolio is designed to moderate overall price volatility and cushion severe losses in any one investment sector.

The Fund generally invests:

• between 55% and 95% of its assets in fixed-income funds, and less than 40% in any one fixed-income fund; such funds generally invest in fixed-income instruments such as high yield securities (or "junk" bonds), securitized products, corporate bonds, and U.S. government securities;

• between 5% and 45% of its assets in equity funds, and less than 30% in any one equity fund; such funds generally invest in equity securities of domestic and foreign companies, including small, medium, and large market capitalization companies, and growth and value stock; and

• less than 20% of its assets in specialty funds, and less than 20% in any one specialty fund; such funds generally offer unique combinations of traditional equity securities and fixed-income securities or use alternative investment strategies that aim to offer diversification beyond traditional equity and fixed-income securities and include investments in such assets as infrastructure, commodities, currencies, and natural resources companies.

The Fund may temporarily exceed these percentage ranges and may alter the percentage ranges when it deems appropriate.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

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• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**High Yield Securities Risk.** High yield fixed-income securities (commonly referred to as "junk bonds") are subject to greater credit quality risk than higher rated fixed-income securities and should be considered speculative.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Securitized Products Risk.** Investments in securitized products are subject to risks similar to traditional fixed-income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Unscheduled prepayments on securitized products may have to be reinvested at lower rates. A reduction in prepayments may increase the effective maturities of these securities, exposing them to the risk of decline in market value over time (extension risk).

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

**U.S. Government-Sponsored Securities Risk.** Securities issued by U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. government.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

------

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

**Total Returns as of December 31**

![11882](ck0000898745-20260227_g56.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **7.69%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(8.81)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **5.42%** | **2.42%** | **4.27%** |
| **Class A Return After Taxes on Distributions** | **4.14%** | **1.23%** | **3.02%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **3.41%** | **1.45%** | **2.90%** |
| **Class C Return Before Taxes** | **7.70%** | **2.42%** | **4.03%** |
| **Class J Return Before Taxes** | **8.73%** | **3.38%** | **4.84%** |
| **Institutional Class Return Before Taxes** | **9.88%** | **3.51%** | **4.97%** |
| **Class R-3 Return Before Taxes** | **9.23%** | **2.95%** | **4.41%** |
| **Class R-5 Return Before Taxes** | **9.64%** | **3.27%** | **4.73%** |
| Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| SAM Flexible Income Blended Index (except as noted for MSCI ACWI Index NTR, reflects no deduction for fees, expenses, or taxes) | 10.98% | 2.52% | 4.53% |
| &nbsp;&nbsp;&nbsp;Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| &nbsp;&nbsp;&nbsp;MSCI ACWI Index NTR (reflects withholding taxes on foreign dividends, but no deduction for fees, expenses, or other taxes) | 22.34% | 11.19% | 11.72% |
| SAM Flexible Income Blended Index (except as noted for MSCI EAFE Index NTR, reflects no deduction for fees, expenses, or taxes) | 10.44% | 2.81% | 4.87% |
| &nbsp;&nbsp;&nbsp;Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| &nbsp;&nbsp;&nbsp;Russell 3000 Index (reflects no deduction for fees, expenses, or taxes) | 17.15% | 13.15% | 14.29% |
| &nbsp;&nbsp;&nbsp;MSCI EAFE Index NTR (reflects withholding taxes on foreign dividends, but no deduction for fees, expenses, or other taxes) | 31.22% | 8.92% | 8.18% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

------

The Bloomberg US Aggregate Index is the Fund's primary broad-based securities market index. The SAM Flexible Income Blended Index is included as an additional index for the Fund as it shows how the Fund's performance compares with returns of indices of funds with similar investment objectives. Performance of each component of the blended index is also shown. Effective as of March 1, 2026, the Fund changed the weightings of the SAM Flexible Income Blended Index to the following because such weightings more closely align with the Fund's investment approach: 75% Bloomberg US Aggregate Index and 25% MSCI ACWI Index NTR. Prior to March 1, 2026, the components and weightings of the SAM Flexible Income Blended Index were as follows: 75% Bloomberg US Aggregate Index, 20% Russell 3000 Index, and 5% MSCI EAFE Index NTR. The blended index returns reflect the allocations described in the preceding sentences and are as of December 31, 2025.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• Brody Dass (since 2022), Portfolio Manager

• Todd A. Jablonski (since 2010), Portfolio Manager

• Yesim Tokat-Acikel (since 2023), Portfolio Manager

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A, C, and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A, C, and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A, C, and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, and R-5** | There are no minimum initial or subsequent investment requirements for eligible purchases. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

Class C shares are subject to an 8-year automatic conversion plan whereby Class C shares held for eight years after purchase will automatically convert to Class A shares of the same Fund. See Purchase of Fund Shares for more information.

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**SAM (STRATEGIC ASSET MANAGEMENT) STRATEGIC GROWTH PORTFOLIO**

**Objective**

The Fund seeks to provide long-term capital appreciation.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** |
| Maximum Sales Charge (Load) Imposed on Purchases <br>(as a percentage of offering price) | 5.50% |  |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% | 1.00% |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** |
| Management Fees | 0.27% | 0.27% | 0.27% | 0.27% | 0.27% | 0.27% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 1.00% | 0.15% | N/A | 0.25% | N/A |
| Other Expenses | 0.07% | 0.11% | 0.04% | 0.03% | 0.33% | 0.27% |
| Acquired Fund Fees and Expenses | 0.52% | 0.52% | 0.52% | 0.52% | 0.52% | 0.52% |
| **Total Annual Fund Operating Expenses** | **1.11%** | **1.90%** | **0.98%** | **0.82%** | **1.37%** | **1.06%** |

---

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example assumes conversion of the Class C shares to Class A shares after the eighth year. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $657 | $883 | $1128 | $1827 |
| **Class C** | 293 | 597 | 1026 | 2016 |
| **Class J** | 200 | 312 | 542 | 1201 |
| **Institutional Class** | 84 | 262 | 455 | 1014 |
| **Class R-3** | 139 | 434 | 750 | 1646 |
| **Class R-5** | 108 | 337 | 585 | 1294 |

---

With respect to Classes C and J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class C** | $193 | $597 | $1026 | $2016 |
| **Class J** | 100 | 312 | 542 | 1201 |

---

------

**Portfolio Turnover**

The Fund and each underlying fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's and the underlying fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 44.8% of the average value of its portfolio.

**Principal Investment Strategies**

The SAM Portfolios operate as funds of funds and invest principally in funds and exchange-traded funds ("ETFs") of Principal Funds, Inc. and Principal Exchange-Traded Funds ("Underlying Funds"). Each SAM Portfolio generally categorizes each Underlying Fund as a fixed-income, equity, or specialty fund based on its investment profile. Each SAM Portfolio typically allocates its assets among Underlying Funds, and within predetermined percentage ranges, as determined by the SAM Portfolio in accordance with its outlook for the economy, the financial markets, and the relative market valuations of the Underlying Funds. The asset class diversification of the SAM Portfolio is designed to moderate overall price volatility and cushion severe losses in any one investment sector.

The Fund generally invests:

• between 75% and 100% of its assets in equity funds, and less than 50% in any one equity fund; such funds generally invest in equity securities of domestic and foreign companies (including in emerging markets), including small, medium, and large market capitalization companies, and growth and value stock; and

• less than 20% of its assets in specialty funds, and less than 20% in any one specialty fund; such funds generally offer unique combinations of traditional equity securities or use alternative investment strategies that aim to offer diversification beyond traditional equity securities and include investments in such assets as infrastructure, commodities, currencies, and natural resources companies.

The Fund may temporarily exceed these percentage ranges and may alter the percentage ranges when it deems appropriate.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Principal Risks of Investing in a Fund of Funds**

**Fund of Funds Risk.** Fund shareholders bear indirectly their proportionate share of the expenses of other investment companies (for example, other mutual funds or exchange-traded funds) in which the Fund invests ("underlying funds"). The Fund's selection and weighting of asset classes and allocation of investments in underlying funds may cause it to underperform other funds with a similar investment objective. The Fund's performance and risks correspond directly to the performance and risks of the underlying funds in which it invests, proportionately in accordance with the weightings of such investments, and there is no assurance that the underlying funds will achieve their investment objectives. Management of the Fund entails potential conflicts of interest: the Fund invests in affiliated underlying funds; and PGI and its affiliates may earn different fees from different underlying funds and may have an incentive to allocate more Fund assets to underlying funds from which they receive higher fees.

**Principal Risks due to the Fund's Investments in Underlying Funds**

**Emerging Markets Risk.** Investments in emerging markets may have more risk than those in developed markets because the emerging markets are less developed and more illiquid. Emerging markets can also be subject to increased social, economic, regulatory, and political uncertainties and can be extremely volatile. The U.S. Securities and Exchange Commission, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors in emerging markets, including with respect to fraud.

------

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Foreign Currency Risk.** Risks of investing in securities denominated in, or that trade in, foreign (non-U.S.) currencies include changes in foreign exchange rates and foreign exchange restrictions.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

------

**Total Returns as of December 31**

![10632](ck0000898745-20260227_g57.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **19.17%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(22.15)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **10.06%** | **8.53%** | **9.92%** |
| **Class A Return After Taxes on Distributions** | **7.15%** | **6.73%** | **8.05%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **7.90%** | **6.45%** | **7.61%** |
| **Class C Return Before Taxes** | **14.57%** | **8.89%** | **9.86%** |
| **Class J Return Before Taxes** | **15.64%** | **9.93%** | **10.72%** |
| **Institutional Class Return Before Taxes** | **16.86%** | **10.11%** | **10.90%** |
| **Class R-3 Return Before Taxes** | **16.16%** | **9.49%** | **10.29%** |
| **Class R-5 Return Before Taxes** | **16.55%** | **9.84%** | **10.63%** |
| MSCI ACWI Index NTR (reflects withholding taxes on foreign dividends, but no deduction for fees, expenses, or other taxes) | 22.34% | 11.19% | 11.72% |
| Russell 3000 Index (reflects no deduction for fees, expenses, or taxes) | 17.15% | 13.15% | 14.29% |
| SAM Strategic Growth Blended Index (except as noted for MSCI ACWI Index NTR, reflects no deduction for fees, expenses, or taxes) | 21.57% | 10.61% | 11.26% |
| &nbsp;&nbsp;&nbsp;MSCI ACWI Index NTR (reflects withholding taxes on foreign dividends, but no deduction for fees, expenses, or other taxes) | 22.34% | 11.19% | 11.72% |
| &nbsp;&nbsp;&nbsp;Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| SAM Strategic Growth Blended Index (except as noted for MSCI EAFE Index NTR, reflects no deduction for fees, expenses, or taxes) | 20.15% | 11.49% | 12.22% |
| &nbsp;&nbsp;&nbsp;Russell 3000 Index (reflects no deduction for fees, expenses, or taxes) | 17.15% | 13.15% | 14.29% |
| &nbsp;&nbsp;&nbsp;MSCI EAFE Index NTR (reflects withholding taxes on foreign dividends, but no deduction for fees, expenses, or other taxes) | 31.22% | 8.92% | 8.18% |
| &nbsp;&nbsp;&nbsp;Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

------

Effective March 1, 2026, the Fund changed its primary broad-based securities market index to the MSCI ACWI Index NTR because it more closely aligns with the Fund's investment approach. Prior to March 1, 2026, the Fund's primary broad-based securities market index was the Russell 3000 Index. The SAM Strategic Growth Blended Index is included as an additional index for the Fund as it shows how the Fund's performance compares with returns of indices of funds with similar investment objectives. Performance of each component of the blended index is also shown. Effective as of March 1, 2026, the Fund changed the weightings of the SAM Strategic Growth Blended Index to the following because such weightings more closely align with the Fund's investment approach: 95% MSCI ACWI Index NTR and 5% Bloomberg US Aggregate Index. Prior to March 1, 2026, the weightings for SAM Strategic Growth Blended Index were as follows: 70% Russell 3000 Index, 25% MSCI EAFE Index NTR, and 5% Bloomberg US Aggregate Index. The blended index returns reflect the allocations described in the preceding sentences and are as of December 31, 2025.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• Brody Dass (since 2022), Portfolio Manager

• Todd A. Jablonski (since 2010), Portfolio Manager

• Yesim Tokat-Acikel (since 2023), Portfolio Manager

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A, C, and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A, C, and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A, C, and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, and R-5** | There are no minimum initial or subsequent investment requirements for eligible purchases. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

Class C shares are subject to an 8-year automatic conversion plan whereby Class C shares held for eight years after purchase will automatically convert to Class A shares of the same Fund. See Purchase of Fund Shares for more information.

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**SHORT-TERM INCOME FUND**

**Objective**

The Fund seeks to provide as high a level of current income as is consistent with prudent investment management and stability of principal.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** |
| Maximum Sales Charge (Load) Imposed on Purchases <br>(as a percentage of offering price) | 2.25% |  |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% | 1.00% |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **J** | **Inst.**  | **R-3** | **R-5** |
| Management Fees <sup>(1)</sup> | 0.34% | 0.34% | 0.34% | 0.34% | 0.34% | 0.34% |
| Distribution and/or Service (12b-1) Fees | 0.15% | 1.00% | 0.15% | N/A | 0.25% | N/A |
| Other Expenses | 0.10% | 0.19% | 0.09% | 0.04% | 0.32% | 0.26% |
| Acquired Fund Fees and Expenses | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% |
| **Total Annual Fund Operating Expenses** | **0.60%** | **1.54%** | **0.59%** | **0.39%** | **0.92%** | **0.61%** |

---

<sup>(1)</sup> Fees have been restated to reflect current fees.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example assumes conversion of the Class C shares to Class A shares after the eighth year. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $285 | $413 | $552 | $958 |
| **Class C** | 257 | 486 | 839 | 1581 |
| **Class J** | 160 | 189 | 329 | 738 |
| **Institutional Class** | 40 | 125 | 219 | 493 |
| **Class R-3** | 94 | 293 | 509 | 1131 |
| **Class R-5** | 62 | 195 | 340 | 762 |

---

With respect to Classes C and J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class C** | $157 | $486 | $839 | $1581 |
| **Class J** | 60 | 189 | 329 | 738 |

---

------

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 42.3% of the average value of its portfolio.

**Principal Investment Strategies**

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 ("S&P Global") or Baa3 or higher by Moody's Investors Service, Inc. ("Moody's"). If the security has been rated by only one of the rating agencies, that rating will determine the security's rating; if the security is rated differently by the rating agencies, the highest rating will be used; and if the security has not been rated by either of the rating agencies, those selecting such investments will determine the security's quality. The Fund's investments also include corporate securities, government securities, mortgage-backed and asset-backed securities (securitized products), and foreign securities.

Under normal circumstances, the Fund maintains an effective maturity of five years or less and an average portfolio duration that is within ±30% of the duration of the Bloomberg Credit 1-3 Year Index, which as of January 31, 2026 was 1.80 years.

The Fund invests in derivatives, including Treasury futures and credit index futures, for hedging purposes and to manage fixed-income exposure. A derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Derivatives Risk.** Derivatives may not move in the direction anticipated by the portfolio manager. Transactions in derivatives may increase volatility, cause the liquidation of portfolio positions when not advantageous to do so, and result in disproportionate losses that may be substantially greater than a fund's initial investment.

• **Futures.** Futures contracts involve specific risks, including: the imperfect correlation between the change in market value of the instruments held by the Fund and the price of the futures contract; possible lack of a liquid secondary market for a futures contract and the resulting inability to close a futures contract when desired; counterparty risk; and if the Fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

**Foreign Securities Risk.** The risks of foreign securities include loss of value as a result of: political or economic instability; nationalization, expropriation, or confiscatory taxation; settlement delays; and limited government regulation (including less stringent reporting, accounting, and disclosure standards than are required of U.S. companies).

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Real Estate Securities Risk.** Investing in real estate securities subjects the fund to the risks associated with the real estate market (which are similar to the risks associated with direct ownership in real estate), including declines in real estate values, loss due to casualty or condemnation, property taxes, interest rate changes, increased expenses, cash flow of underlying real estate assets, regulatory changes (including zoning, land use, and rents), and environmental problems, as well as to the risks related to the management skill and creditworthiness of the issuer.

------

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Securitized Products Risk.** Investments in securitized products are subject to risks similar to traditional fixed-income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Unscheduled prepayments on securitized products may have to be reinvested at lower rates. A reduction in prepayments may increase the effective maturities of these securities, exposing them to the risk of decline in market value over time (extension risk).

**U.S. Government Securities Risk.** Yields available from U.S. government securities are generally lower than yields from many other fixed-income securities. The value of U.S. government securities may be adversely impacted by changes in interest rates, changes in the credit rating of the U.S. government, or a default by the U.S. government.

**U.S. Government-Sponsored Securities Risk.** Securities issued by U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation, the Federal National Mortgage Association, and the Federal Home Loan Banks are not issued or guaranteed by the U.S. government.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

**Total Returns as of December 31**

![9905](ck0000898745-20260227_g58.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **3.37%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2022** | **(2.48)%** |

---

------

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **2.89%** | **1.66%** | **2.16%** |
| **Class A Return After Taxes on Distributions** | **1.37%** | **0.60%** | **1.21%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **1.69%** | **0.81%** | **1.24%** |
| **Class C Return Before Taxes** | **3.31%** | **1.17%** | **1.64%** |
| **Class J Return Before Taxes** | **4.40%** | **2.16%** | **2.41%** |
| **Institutional Class Return Before Taxes** | **5.52%** | **2.35%** | **2.62%** |
| **Class R-3 Return Before Taxes** | **4.96%** | **1.81%** | **2.08%** |
| **Class R-5 Return Before Taxes** | **5.29%** | **2.13%** | **2.38%** |
| Bloomberg US Aggregate Index (reflects no deduction for fees, expenses, or taxes) | 7.30% | (0.36)% | 2.01% |
| Bloomberg Credit 1-3 Year Index (reflects no deduction for fees, expenses, or taxes) | 5.82% | 2.46% | 2.64% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

The Bloomberg US Aggregate Index is the Fund's primary 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• Jeff Callahan (since 2025), Portfolio Manager

• Michael Goosay (since 2023), Portfolio Manager

• Scott J. Peterson (since 2010), Portfolio Manager

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A, C, and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A, C, and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A, C, and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, and R-5** | There are no minimum initial or subsequent investment requirements for eligible purchases. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

Class C shares are subject to an 8-year automatic conversion plan whereby Class C shares held for eight years after purchase will automatically convert to Class A shares of the same Fund. See Purchase of Fund Shares for more information.

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**SMALLCAP FUND**

**Objective**

The Fund seeks long-term growth of capital.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $50,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)** 

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.**  | **R-3** | **R-5** | **R-6** |
| Maximum Sales Charge (Load) Imposed on Purchases <br>(as a percentage of offering price) | 5.50% |  |  |  |  |  |
| Maximum Deferred Sales Charge (Load) (as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% |  |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Management Fees | 0.72% | 0.72% | 0.72% | 0.72% | 0.72% | 0.72% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 0.15% | N/A | 0.25% | N/A | N/A |
| Other Expenses | 0.14% | 0.10% | 0.16% | 0.33% | 0.27% | 0.01% |
| **Total Annual Fund Operating Expenses** | **1.11%** | **0.97%** | **0.88%** | **1.30%** | **0.99%** | **0.73%** |
| Expense Reimbursement <sup>(1)</sup> | N/A | N/A | (0.03)% | N/A | N/A | N/A |
| **Total Annual Fund Operating Expenses after Expense Reimbursement** | **1.11%** | **0.97%** | **0.85%** | **1.30%** | **0.99%** | **0.73%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.85% for Institutional Class shares. It is expected that the expense limit will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $657 | $883 | $1128 | $1827 |
| **Class J** | 199 | 309 | 536 | 1190 |
| **Institutional Class** | 87 | 278 | 485 | 1082 |
| **Class R-3** | 132 | 412 | 713 | 1568 |
| **Class R-5** | 101 | 315 | 547 | 1213 |
| **Class R-6** | 75 | 233 | 406 | 906 |

---

------

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $99 | $309 | $536 | $1190 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 31.4% of the average value of its portfolio.

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, 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 (as of January 30, 2026, this was between approximately $10.0 million and $38.2 billion). 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.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

------

For periods prior to the inception date of Class R-6 shares (November 22, 2016), the performance shown in the table for Class R-6 shares is that of the Fund's Class R-3 shares, adjusted to reflect the fees and expenses of Class R-6 shares. However, where the adjustment for fees and expenses results in performance for Class R-6 shares that is higher than the historical performance of the Class R-3 shares, the historical performance of the Class R-3 shares is used. These adjustments result in performance for such periods that is no higher than the historical performance of the Class R-3 shares.

**Total Returns as of December 31**

![9654](ck0000898745-20260227_g59.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **28.39%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(30.54)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **8.49%** | **4.91%** | **8.67%** |
| **Class A Return After Taxes on Distributions** | **7.14%** | **3.99%** | **7.29%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **5.99%** | **3.71%** | **6.65%** |
| **Class J Return Before Taxes** | **13.98%** | **6.27%** | **9.46%** |
| **Institutional Class Return Before Taxes** | **15.12%** | **6.42%** | **9.65%** |
| **Class R-3 Return Before Taxes** | **14.56%** | **5.93%** | **9.12%** |
| **Class R-5 Return Before Taxes** | **14.92%** | **6.26%** | **9.46%** |
| **Class R-6 Return Before Taxes** | **15.19%** | **6.52%** | **9.67%** |
| Russell 3000 Index (reflects no deduction for fees, expenses, or taxes) | 17.15% | 13.15% | 14.29% |
| Russell 2000 Index (reflects no deduction for fees, expenses, or taxes) | 12.81% | 6.09% | 9.62% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

The Russell 3000 Index is the Fund's primary 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• Emily Foshag (since 2025), Portfolio Manager

• Phil Nordhus (since 2006), Portfolio Manager

• Brian W. Pattinson (since 2011), Portfolio Manager

------

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A and J** | Initial Investment | $1000<sup>(1)</sup> |
| **A and J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A and J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, R-5, and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchases. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

Effective as of the close of the New York Stock Exchange on March 24, 2023, Class C shares will no longer be available for purchase except in limited circumstances. See Purchase of Fund Shares for more information.

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**SMALLCAP GROWTH FUND I**

**Objective**

The Fund seeks long-term growth of capital.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Maximum Deferred Sales Charge (Load)<br>(as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Management Fees | 0.85% | 0.85% | 0.85% | 0.85% | 0.85% |
| Distribution and/or Service (12b-1) Fees | 0.15% | N/A | 0.25% | N/A | N/A |
| Other Expenses | 0.13% | 0.12% | 0.33% | 0.27% | 0.02% |
| Acquired Fund Fees and Expenses | 0.03% | 0.03% | 0.03% | 0.03% | 0.03% |
| **Total Annual Fund Operating Expenses** | **1.16%** | **1.00%** | **1.46%** | **1.15%** | **0.90%** |
| Fee Waiver and Expense Reimbursement <sup>(1)(2)</sup> | (0.02)% | (0.02)% | (0.02)% | (0.02)% | (0.03)% |
| **Total Annual Fund Operating Expenses after Fee Waiver and Expense Reimbursement** | **1.14%** | **0.98%** | **1.44%** | **1.13%** | **0.87%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to waive a portion of the Fund's management fees through the period ending February 28, 2027. The fee waiver will reduce the Fund's management fees by 0.02% (expressed as a percent of average net assets on an annualized basis). It is expected that the fee waiver will continue through the period disclosed; however, Principal Funds, Inc. and PGI, the parties to the agreement may mutually agree to terminate the fee waiver prior to the end of the period.

<sup>(2)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain "Other Expenses" (expressed as a percent of average net assets on an annualized basis) not to exceed 0.01% for Class R-6 shares. It is expected that the expense limit will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limit prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $216 | $366 | $636 | $1407 |
| **Institutional Class** | 100 | 316 | 551 | 1223 |
| **Class R-3** | 147 | 460 | 796 | 1745 |
| **Class R-5** | 115 | 363 | 631 | 1396 |
| **Class R-6** | 89 | 284 | 496 | 1105 |

---

------

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $116 | $366 | $636 | $1407 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 70.1% of the average value of its portfolio.

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in growth equity securities of companies with small market capitalizations. For this Fund, growth equity securities of companies with small market capitalizations are (i) those with market capitalizations within the range of companies comprising the Russell 2000 Index (as of January 30, 2026, this range was between $10.0 million and $38.2 billion) and (ii) included within at least one of the following growth indices: the MSCI All Country World IMI Growth Index, the S&P 1500 Growth Index, or the Russell 3000 Growth Index.

The Fund is primarily actively managed by the sub-advisors. In addition, Principal Global Investors, LLC may invest up to 30% of the Fund's assets using an index sampling strategy designed to match the performance of the Russell 2000<sup>®</sup> Growth Index.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Growth Style Risk.** Growth investing entails the risk that if growth companies do not increase their earnings at a rate expected by investors, the market price of their stock may decline significantly, even if earnings show an absolute increase. Growth company stocks also typically lack the dividend yield that can lessen price declines in market downturns.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

**Passive Strategy Risk.** A portion of the Fund seeks to match the performance of a specified index. However, the correlation between the performance of this portion of the Fund and index performance may be affected by many factors, such as Fund expenses, the timing of cash flows into and out of the Fund, changes in securities markets, and changes in the composition of the index.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

------

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

**Total Returns as of December 31**

![8871](ck0000898745-20260227_g60.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q2 2020** | **33.84%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(22.08)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **12.74%** | **2.74%** | **10.98%** |
| **Institutional Class Return After Taxes on Distributions** | **10.38%** | **1.07%** | **9.00%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **9.05%** | **1.82%** | **8.49%** |
| **Class J Return Before Taxes** | **11.52%** | **2.56%** | **10.73%** |
| **Class R-3 Return Before Taxes** | **12.25%** | **2.27%** | **10.44%** |
| **Class R-5 Return Before Taxes** | **12.50%** | **2.57%** | **10.77%** |
| **Class R-6 Return Before Taxes** | **12.83%** | **2.84%** | **11.06%** |
| Russell 3000 Index (reflects no deduction for fees, expenses, or taxes) | 17.15% | 13.15% | 14.29% |
| Russell 2000 Growth Index (reflects no deduction for fees, expenses, or taxes) | 13.01% | 3.18% | 9.57% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The Russell 3000 Index is the Fund's primary broad-based securities market index. The Russell 2000 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.

------

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2009), Portfolio Manager

• Michael Messina (since 2025), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

**Sub-Advisors**

AllianceBernstein L.P.

Brown Advisory, LLC

Emerald Advisers, LLC

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **J** | Initial Investment | $1000<sup>(1)</sup> |
| **J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, R-5, and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchases. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**SMALLCAP S&P 600 INDEX FUND**

**Objective**

The Fund seeks long-term growth of capital.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Maximum Deferred Sales Charge (Load) <br>(as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Management Fees | 0.15% | 0.15% | 0.15% | 0.15% | 0.15% |
| Distribution and/or Service (12b-1) Fees | 0.15% | N/A | 0.25% | N/A | N/A |
| Other Expenses | 0.09% | 0.10% | 0.33% | 0.27% | 0.02% |
| **Total Annual Fund Operating Expenses** | **0.39%** | **0.25%** | **0.73%** | **0.42%** | **0.17%** |
| Expense Reimbursement <sup>(1)</sup> | N/A | (0.04)% | N/A | N/A | N/A |
| **Total Annual Fund Operating Expenses after Expense Reimbursement** | **0.39%** | **0.21%** | **0.73%** | **0.42%** | **0.17%** |

---

<sup>(1)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.21% for Institutional Class shares. It is expected that the expense limit will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limit prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $140 | $125 | $219 | $493 |
| **Institutional Class** | 22 | 76 | 137 | 314 |
| **Class R-3** | 75 | 233 | 406 | 906 |
| **Class R-5** | 43 | 135 | 235 | 530 |
| **Class R-6** | 17 | 55 | 96 | 217 |

---

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $40 | $125 | $219 | $493 |

---

------

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 35.9% of the average value of its portfolio.

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies that compose the Standard & Poor's ("S&P") SmallCap 600 Index (the "Index"). The Index is designed to represent U.S. equities with risk/return characteristics of the small cap universe. As of January 30, 2026, the market capitalization range of the companies comprising the Index was between approximately $194.0 million and $9.8 billion. Each component stock of the Index is weighted in proportion to its total market value. The Index is rebalanced quarterly.

The Fund employs a passive investment approach designed to attempt to track the performance of the Index. In seeking its objective, the Fund typically employs a replication strategy, which involves investing in all the securities that make up the Index, in the same proportions as the Index.

The Fund will not concentrate (i.e., invest more than 25% of its assets) its investments in a particular industry except to the extent the Index is so concentrated. As of January 31, 2026, the Index was not concentrated in any industry.

**Note:** "Standard & Poor's SmallCap 600" and "S&P SmallCap 600" are trademarks of S&P Global and have been licensed by Principal. The Fund is not sponsored, endorsed, sold, or promoted by S&P Global, and S&P Global makes no representation regarding the advisability of investing in the Fund.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

**Index Fund Risk.** Index funds use a passive investment approach and generally do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor investment performance. Therefore, the Fund may hold securities that present risks that an investment advisor researching individual securities might seek to avoid. An index fund has operating and other expenses while an index does not. As a result, over time, index funds tend to underperform the index. The correlation between fund performance and index performance may also be affected by the type of passive investment approach used by a fund (sampling or replication), changes in securities markets, changes in the composition of the index, and the timing of purchases and sales of fund shares. Errors or delays in compiling or rebalancing the Index may impact the performance of the Fund and increase transaction costs.

**Industry Concentration Risk.** A fund that concentrates investments in a particular industry or group of industries has greater exposure than other funds to market, economic, and other factors affecting that industry or group of industries.

------

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

For periods prior to the inception date of Class R-6 shares (November 22, 2016), the performance shown in the table for Class R-6 shares is that of the Fund's Class R-3 shares, adjusted to reflect the fees and expenses of Class R-6 shares. However, where the adjustment for fees and expenses results in performance for Class R-6 shares that is higher than the historical performance of the Class R-3 shares, the historical performance of the Class R-3 shares is used. These adjustments result in performance for such periods that is no higher than the historical performance of the Class R-3 shares.

**Total Returns as of December 31**

![11024](ck0000898745-20260227_g61.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q4 2020** | **31.18%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(32.65)%** |

---

------

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **5.91%** | **7.03%** | **9.56%** |
| **Institutional Class Return After Taxes on Distributions** | **3.12%** | **4.76%** | **7.47%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **4.97%** | **5.19%** | **7.33%** |
| **Class J Return Before Taxes** | **4.74%** | **6.82%** | **9.35%** |
| **Class R-3 Return Before Taxes** | **5.32%** | **6.47%** | **9.00%** |
| **Class R-5 Return Before Taxes** | **5.67%** | **6.80%** | **9.34%** |
| **Class R-6 Return Before Taxes** | **5.91%** | **7.08%** | **9.56%** |
| S&P 1500 Index (reflects no deduction for fees, expenses, or taxes) | 17.02% | 13.96% | 14.46% |
| S&P SmallCap 600 Index (reflects no deduction for fees, expenses, or taxes) | 6.02% | 7.31% | 9.81% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The S&P 1500 Index is the Fund's primary broad-based securities market index. The S&P SmallCap 600 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.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

***•*** Tyler O'Donnell (since 2023), Portfolio Manager

• Aaron J. Siebel (since 2018), Portfolio Manager

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **J** | Initial Investment | $1000<sup>(1)</sup> |
| **J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, R-5, and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchases. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**SMALLCAP VALUE FUND II**

**Objective**

The Fund seeks long-term growth of capital.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** 

If you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Maximum Deferred Sales Charge (Load) <br>(as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% |  |  |  |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Management Fees <sup>(1)</sup> | 0.88% | 0.88% | 0.88% | 0.88% | 0.88% |
| Distribution and/or Service (12b-1) Fees | 0.15% | N/A | 0.25% | N/A | N/A |
| Other Expenses | 0.19% | 0.13% | 0.33% | 0.27% | 0.05% |
| Acquired Fund Fees and Expenses | 0.01% | 0.01% | 0.01% | 0.01% | 0.01% |
| **Total Annual Fund Operating Expenses** | **1.23%** | **1.02%** | **1.47%** | **1.16%** | **0.94%** |
| Fee Waiver and Expense Reimbursement <sup>(2)(3)</sup> | (0.02)% | (0.08)% | (0.02)% | (0.02)% | (0.05)% |
| **Total Annual Fund Operating Expenses after Fee Waiver and Expense Reimbursement** | **1.21%** | **0.94%** | **1.45%** | **1.14%** | **0.89%** |

---

<sup>(1)</sup> Fees have been restated to reflect current fees.

<sup>(2)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to waive a portion of the Fund's management fees through the period ending February 28, 2027. The fee waiver will reduce the Fund's management fees by 0.02% (expressed as a percent of average net assets on an annualized basis). It is expected that the fee waiver will continue through the period disclosed; however, Principal Funds, Inc. and PGI, the parties to the agreement may mutually agree to terminate the fee waiver prior to the end of the period.

<sup>(3)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.93% for Institutional Class shares. In addition, for Class R-6, the expense limit will maintain "Other Expenses" (expressed as a percent of average net assets on an annualized basis) not to exceed 0.02%, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses). It is expected that the expense limits will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limits prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $223 | $388 | $674 | $1487 |
| **Institutional Class** | 96 | 317 | 555 | 1241 |
| **Class R-3** | 148 | 463 | 801 | 1756 |
| **Class R-5** | 116 | 366 | 636 | 1407 |
| **Class R-6** | 91 | 295 | 515 | 1150 |

---

------

With respect to Class J shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

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| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class J** | $123 | $388 | $674 | $1487 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 89.9% of the average value of its portfolio.

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in equity securities of companies with small market capitalizations. For this Fund, companies with small market capitalizations are those with market capitalizations of one or both of the following: $3.5 billion or less, or within the range of companies composing the Russell 2000<sup>®</sup> Value Index (as of January 30, 2026, this range was between approximately $16.0 million and $32.4 billion). The Fund invests in value equity securities, an investment strategy that emphasizes buying equity securities that appear to be undervalued.

The Fund is primarily actively managed by the sub-advisors. In addition, Principal Global Investors, LLC may invest up to 30% of the Fund's assets using an index sampling strategy designed to match the performance of the Russell 2000<sup>®</sup> Value Index.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Equity Securities Risk.** A variety of factors can negatively impact the value of equity securities held by a fund, including a decline in the issuer's financial condition, unfavorable performance of the issuer's sector or industry, or changes in response to overall market and economic conditions. A fund's principal market segment(s) (such as market capitalization or style) may underperform other market segments or the equity markets as a whole.

• **Smaller Companies Risk.** Investments in smaller companies may involve greater risk and price volatility than investments in larger, more mature companies. Smaller companies may have limited product lines, markets, or financial resources; lack the competitive strength of larger companies; have less experienced managers; or depend on a few key employees. Their securities often are less widely held and trade less frequently and in lesser quantities, and their market prices often fluctuate more, than securities of larger companies.

• **Value Style Risk.** Value investing entails the risk that value stocks may continue to be undervalued by the market for extended periods, including the entire period during which the stock is held by a fund, or the events that would cause the stock price to increase may not occur as anticipated or at all. Moreover, a stock that appears to be undervalued actually may be appropriately priced at a low level and, therefore, would not be profitable for the fund.

**Passive Strategy Risk.** A portion of the Fund seeks to match the performance of a specified index. However, the correlation between the performance of this portion of the Fund and index performance may be affected by many factors, such as Fund expenses, the timing of cash flows into and out of the Fund, changes in securities markets, and changes in the composition of the index.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

------

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Institutional Class shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

**Total Returns as of December 31**

![10334](ck0000898745-20260227_g62.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q4 2020** | **31.34%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2020** | **(35.49)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Institutional Class Return Before Taxes** | **8.17%** | **10.36%** | **9.13%** |
| **Institutional Class Return After Taxes on Distributions** | **5.83%** | **7.38%** | **6.70%** |
| **Institutional Class Return After Taxes on Distributions and Sale of Fund Shares** | **6.11%** | **7.35%** | **6.64%** |
| **Class J Return Before Taxes** | **6.85%** | **10.04%** | **8.74%** |
| **Class R-3 Return Before Taxes** | **7.57%** | **9.77%** | **8.55%** |
| **Class R-5 Return Before Taxes** | **7.99%** | **10.14%** | **8.89%** |
| **Class R-6 Return Before Taxes** | **8.22%** | **10.42%** | **9.17%** |
| Russell 3000 Index (reflects no deduction for fees, expenses, or taxes) | 17.15% | 13.15% | 14.29% |
| Russell 2000 Value Index (reflects no deduction for fees, expenses, or taxes) | 12.59% | 8.88% | 9.27% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Institutional Class shares only and would be different for the other share classes.

The Russell 3000 Index is the Fund's primary broad-based securities market index. The Russell 2000 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.

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**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James W. Fennessey (since 2009), Portfolio Manager

• Michael Messina (since 2025), Portfolio Manager

• May Tong (since 2025), Portfolio Manager

**Sub-Advisors**

Hotchkis and Wiley Capital Management, LLC

Vaughan Nelson Investment Management, LP

**Purchase and Sale of Fund Shares**

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| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **J** | Initial Investment | $1000<sup>(1)</sup> |
| **J** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **J** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional, R-3, R-5, and R-6** | There are no minimum initial or subsequent investment requirements for eligible purchases. | N/A |

---

<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

**Tax Information**

The Fund's distributions you receive are generally subject to federal income tax as ordinary income or capital gain and may also be subject to state and local taxes, unless you are tax-exempt or your account is tax-deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

------

**TAX-EXEMPT BOND FUND**

**Objective**

The Fund seeks to provide a high level of income that is exempt from federal income tax while protecting investors' capital.

**Fees and Expenses of the Fund**

This table describes the fees and expenses that you may pay if you buy, hold, and sell shares of the Fund. **You may pay other fees, such as brokerage commissions and other fees to financial intermediaries, which are not reflected in the tables and examples below.** You may qualify for sales charge discounts if you and your family invest, or agree to invest in the future, at least $100,000 in Class A Shares of Principal Funds, Inc. More information about these and other discounts is available from your financial intermediary and in "Choosing a Share Class and The Costs of Investing" beginning on page 398 of the Fund's Prospectus, Appendix B to the Prospectus titled "Intermediary-Specific Sales Charge Waivers and Reductions," and "Multiple Class Structure" beginning on page 69 of the Fund's Statement of Additional Information.

If you purchase Institutional Class shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary.

**Shareholder Fees (fees paid directly from your investment)**

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| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **Inst.** |
| Maximum Sales Charge (Load) Imposed on Purchases (as a percentage of offering price) | 3.75% |  |  |
| Maximum Deferred Sales Charge (Load) <br>(as a percentage of the offering price or NAV when Sales Load is paid, whichever is less) | 1.00% | 1.00% |  |

---

**Annual Fund Operating Expenses** 

**(expenses that you pay each year as a percentage of the value of your investment)**

---

| | | | |
|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** |
| | **A** | **C** | **Inst.** |
| Management Fees | 0.40% | 0.40% | 0.40% |
| Distribution and/or Service (12b-1) Fees | 0.25% | 1.00% | N/A |
| Other Expenses: |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest Expense <sup>(1)</sup> | 0.19% | 0.19% | 0.19% |
| &nbsp;&nbsp;&nbsp;&nbsp;Remainder of Other Expenses | 0.08% | 0.23% | 0.13% |
| Total Other Expenses | 0.27% | 0.42% | 0.32% |
| **Total Annual Fund Operating Expenses** | **0.92%** | **1.82%** | **0.72%** |
| Expense Reimbursement <sup>(2)</sup> | N/A | N/A | (0.08)% |
| **Total Annual Fund Operating Expenses after Expense Reimbursement** | **0.92%** | **1.82%** | **0.64%** |

---

<sup>(1)</sup> Includes interest expense from inverse floaters.

<sup>(2)</sup> Principal Global Investors, LLC ("PGI"), the investment advisor, has contractually agreed to limit the Fund's expenses by paying, if necessary, expenses normally payable by the Fund, (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.45% for Institutional Class shares. It is expected that the expense limit will continue through the period ending February 28, 2027; however, Principal Funds, Inc. and PGI, the parties to the agreement, may mutually agree to terminate the expense limit prior to the end of the period. Subject to applicable expense limits, the Fund may reimburse PGI for expenses incurred during the current fiscal year.

------

**Example**

This Example is intended to help you compare the cost of investing in the Fund with the cost of investing in other mutual funds. The Example assumes that you invest $10,000 in the Fund for the time periods indicated and then redeem all of your shares at the end of those periods. The Example assumes conversion of the Class C shares to Class A shares after the eighth year. The Example also assumes that your investment has a 5% return each year and that the Fund's operating expenses remain the same. The calculation of costs takes into account any applicable contractual fee waivers and/or expense reimbursements for the period noted in the table above. Although your actual costs may be higher or lower, based on these assumptions your costs would be:

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class A** | $465 | $657 | $865 | $1464 |
| **Class C** | 285 | 573 | 985 | 1901 |
| **Institutional Class** | 65 | 222 | 393 | 887 |

---

With respect to Class C shares, you would pay the following expenses if you did not redeem your shares (all other classes would be the same as in the above example):

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **1 year** | **3 years** | **5 years** | **10 years** |
| **Class C** | $185 | $573 | $985 | $1901 |

---

**Portfolio Turnover**

The Fund pays transaction costs, such as commissions, when it buys and sells securities (or "turns over" its portfolio). A higher portfolio turnover rate may indicate higher transaction costs and may result in higher taxes when Fund shares are held in a taxable account. These costs, which are not reflected in Annual Fund Operating Expenses or in the Example, affect the Fund's performance. During the most recent fiscal year, the Fund's portfolio turnover rate was 53.2% of the average value of its portfolio.

**Principal Investment Strategies**

Under normal circumstances, the Fund invests at least 80% of its net assets, plus any borrowings for investment purposes, in tax-exempt bonds (securities issued by or on behalf of state or local governments and other public authorities). Many of these are from California, Illinois, and New York. Generally, municipal obligations pay interest that is exempt from federal income tax. The Fund's investment in municipal obligations include industrial revenue bonds. The Fund also invests in inverse floating rate obligations (variable rate debt instruments that pay interest at rates that move in the opposite direction of prevailing interest rates), which are generally more volatile than other types of municipal obligations and may involve leverage.

The Fund invests in investment-grade securities and, with respect to up to 20% of its net assets, in below-investment-grade bonds (sometimes called "high yield bonds" or "junk bonds"). Below-investment-grade bonds are rated, at the time of purchase, Ba1 or lower by Moody's Investors Service, Inc. ("Moody's") and BB+ or lower by S&P Global Ratings ("S&P Global"). The Fund's total investment in below-investment-grade bonds plus investment-grade bonds rated Baa by Moody's or BBB by S&P Global, at the time of purchase, will not exceed 40% of the Fund's net assets. If the bond has been rated by only one of the rating agencies, that rating will determine the bond's rating; if the bond is rated differently by the rating agencies, the highest rating will be used; and if the bond has not been rated by either of the rating agencies, those selecting such investments will determine the bond's quality.

Under normal circumstances, the Fund maintains an average portfolio duration that is within ±50% of the duration of the Bloomberg Municipal Bond Index, which as of January 31, 2026 was 6.42 years. The Fund is not managed to a particular maturity.

**Principal Risks**

The value of your investment in the Fund changes with the value of the Fund's investments. Many factors affect that value, and it is possible to lose money by investing in the Fund. An investment in the Fund is not a deposit of a bank and is not insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. The principal risks of investing in the Fund are listed below in alphabetical order and not in order of significance.

**Counterparty Risk.** Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations.

**Fixed-Income Securities Risk.** Fixed-income securities are subject to interest rate, credit quality, and liquidity risks. The market value of fixed-income securities generally declines when interest rates rise, and increased interest rates may adversely affect the liquidity of certain fixed-income securities. Moreover, an issuer of fixed-income securities could default on its payment obligations due to increased interest rates or for other reasons.

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**Geographic Concentration Risk.** A fund that invests significant portions of its assets in municipal obligations and bonds in particular geographic areas (a particular state, such as California, or a particular country or region) has greater exposure than other funds to economic conditions and developments in those areas.

**High Yield Securities Risk.** High yield fixed-income securities (commonly referred to as "junk bonds") are subject to greater credit quality risk than higher rated fixed-income securities and should be considered speculative.

**Industrial Revenue Bond Risk.** The Fund will be sensitive to, and its performance will depend to a greater extent on, the overall condition and performance of industrial revenue bonds. These revenue bonds are issued by or on behalf of public authorities to obtain funds to finance various public and/or privately operated facilities, including those for business and manufacturing, housing, sports, pollution control, airport, mass transit, port, and parking facilities. These bonds are normally secured only by the revenues from the project and not by state or local government tax payments. Consequently, the credit quality of these bonds is dependent upon the ability of the user of the facilities financed by the bonds and any guarantor to meet its financial obligations.

**Inverse Floating Rate Investments Risk.** Inverse floating rate investments are extremely sensitive to changes in interest rates and, in some cases, their market value may be extremely volatile.

**Municipal Obligations Risk.** Principal and interest payments on municipal securities may not be guaranteed by the issuing body and may be payable only from a particular source. That source may not perform as expected, and payment obligations may not be made or made on time.

**Portfolio Duration Risk.** Portfolio duration is a measure of the expected life of a fixed-income security and its sensitivity to changes in interest rates. The longer a fund's average portfolio duration, the more sensitive the fund will be to changes in interest rates, which means funds with longer average portfolio durations may be more volatile than those with shorter durations.

**Redemption and Large Transaction Risk.** Ownership of the Fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause the Fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to Fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

**Performance**

The following information provides some indication of the risks of investing in the Fund. Past performance (before and after taxes) is not necessarily an indication of how the Fund will perform in the future. You may get updated performance information at www.principalam.com/mutualfundperformance.

The bar chart shows the investment returns of the Fund's Class A shares for each full calendar year of operations for 10 years (or, if shorter, the life of the Fund). These annual returns do not reflect sales charges on Class A shares; if they did, results would be lower. The table shows for the last one, five, and ten calendar year periods (or, if shorter, the life of the Fund), how the Fund's average annual total returns compare with those of one or more broad measures of market performance.

------

**Total Returns as of December 31**

![11502](ck0000898745-20260227_g63.jpg)

---

| | | |
|:---|:---|:---|
| **Highest return for a quarter during the period of the bar chart above:** | **Q4 2023** | **6.34%** |
| **Lowest return for a quarter during the period of the bar chart above:** | **Q1 2022** | **(7.11)%** |

---

**Average Annual Total Returns**

**For the periods ended December 31, 2025**

---

| | | | |
|:---|:---|:---|:---|
| | **1 Year** | **5 Years** | **10 Years** |
| **Class A Return Before Taxes** | **(0.13)%** | **(0.34)%** | **1.74%** |
| **Class A Return After Taxes on Distributions** | **(0.13)%** | **(0.34)%** | **1.74%** |
| **Class A Return After Taxes on Distributions and Sale of Fund Shares** | **1.44%** | **0.42%** | **2.04%** |
| **Class C Return Before Taxes** | **1.95%** | **(0.45)%** | **1.46%** |
| **Institutional Class Return Before Taxes** | **4.03%** | **0.70%** | **2.40%** |
| Bloomberg Municipal Bond Index (reflects no deduction for fees, expenses, or taxes) | 4.25% | 0.80% | 2.34% |

---

After-tax returns are calculated using the historical highest individual federal marginal income tax rates and do not reflect the impact of state and local taxes. Actual after-tax returns depend on an investor's tax situation and may differ from those shown. The after-tax returns shown are not relevant to investors who hold their Fund shares through tax-deferred arrangements, such as 401(k) plans or individual retirement accounts. After-tax returns are shown for Class A shares only and would be different for the other share classes.

**Investment Advisor and Portfolio Managers**

Principal Global Investors, LLC

• James Noble (since 2013), Portfolio Manager

• James Welch (since 2014), Portfolio Manager

**Purchase and Sale of Fund Shares**

---

| | | |
|:---|:---|:---|
| **Share Class** | **Investment Type** | **Purchase Minimum**<br>**Per Fund** |
| **A and C** | Initial Investment | $1000<sup>(1)</sup> |
| **A and C** | Initial Investment for accounts with an Automatic Investment Plan (AIP) | $100 |
| **A and C** | Subsequent Investments | $100<sup>(1)(2)</sup> |
| **Institutional** | There are no minimum initial or subsequent investment requirements for eligible purchases. | N/A |

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<sup>(1)</sup> Some exceptions apply; see "Purchase of Fund Shares - Minimum Investments" for more information.

<sup>(2)</sup> For accounts with an AIP, the subsequent automatic investments must total $1,200 annually if the initial $1,000 minimum has not been met.

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You may purchase or redeem shares on any business day (normally any day when the New York Stock Exchange is open for regular trading) through your plan, intermediary, or Financial Professional by sending a written request to Principal Funds at P.O. Box 219971, Kansas City, MO 64121-9971 (regular mail) or 801 Pennsylvania Ave., Ste. 219971, Kansas City, MO 64105-1307 (overnight mail); calling us at 1-800-222-5852; or accessing our website (www.principal.com).

Class C shares are subject to an 8-year automatic conversion plan whereby Class C shares held for eight years after purchase will automatically convert to Class A shares of the same Fund. See Purchase of Fund Shares for more information.

**Tax Information**

While the Fund intends to distribute income that is exempt from regular federal and possibly some state income taxes, a portion of the Fund's distributions may be subject to federal income taxes or to the federal individual alternative minimum tax. A portion of the Fund's distributions likely will be subject to state income taxes depending on your state's rules. Different rules may apply if you are tax exempt or if your account is tax deferred in which case your distributions would be taxed when withdrawn from the tax-deferred account.

**Payments to Broker-Dealers and Other Financial Intermediaries**

If you purchase the Fund through a broker-dealer or other financial intermediary (such as a bank), the Fund and its related companies may pay the intermediary for the sale of Fund shares and related services. These payments may create a conflict of interest by influencing the broker-dealer or other intermediary and your salesperson to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your salesperson or visit your financial intermediary's website for more information.

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**ADDITIONAL INFORMATION ABOUT INVESTMENT STRATEGIES AND RISKS**

Each Fund's investment objective is described in the summary section for each Fund. The summary section also describes each Fund's principal investment strategies, including the types of securities in which each Fund invests, and the principal risks of investing in each Fund. The principal investment strategies are not the only investment strategies available to each Fund, but they are the ones each Fund primarily uses to achieve its investment objective.

Except for Fundamental Restrictions described in the Registrant's Statement of Additional Information ("SAI"), the Registrant's Board (the "Board") may change any Fund's objective or investment strategies without a shareholder vote if it determines such a change is in the best interests of the Fund. If there is a material change to a Fund's investment objective or investment strategies, you should consider whether the Fund remains an appropriate investment for you. There is no guarantee that each Fund will meet its objective.

Each Fund is designed to be a portion of an investor's portfolio. No Fund is intended to be a complete investment program. Investors should consider the risks of a Fund before making an investment; it is possible to lose money by investing in a Fund.

The following investment strategies and risks (before the "Strategy and Risk Table" below) apply to the Funds and, depending on market conditions, can materially impact the management of the Funds.

**Active Management**

The performance of a fund that is actively managed (including hybrid funds or passively managed funds that use a sampling approach that includes some actively managed components) will reflect, in part, the ability of those managing the investments of the fund to make investment decisions that are suited to achieving the fund's investment objective. Actively managed funds may invest differently from the benchmark against which the fund's performance is compared. When making decisions about whether to buy or sell equity securities, considerations may include, among other things, a company's strength in fundamentals, its potential for earnings growth over time, its ability to navigate certain macroeconomic environments, the current price of its securities relative to their perceived worth and relative to others in its industry, and analysis from computer models. When making decisions about whether to buy or sell fixed-income investments, considerations may include, among other things, the strength of certain sectors of the fixed-income market relative to others; interest rates; a range of economic, political, and financial factors; the balance between supply and demand for certain asset classes; the credit quality of individual issuers; the fundamental strengths of corporate and municipal issuers; and other general market conditions.

Models, which may assist portfolio managers and analysts in formulating their securities trading and allocation decisions by providing investment and risk management insights, may also expose a fund to risks. Models may be predictive in nature, which models depend heavily on the accuracy and reliability of historical data that is supplied by others and may be incorrect or incorrectly input. The fund bears the risk that the quantitative models used will not be successful in identifying trends or in determining the size and direction of investment positions that will enable the fund to achieve its investment objective. In addition, "model prices" will often differ substantially from market prices, especially for instruments with complex characteristics, such as derivative instruments.

An active fund's investment performance depends upon the successful allocation of the fund's assets among asset classes, geographical regions, industry sectors, and specific issuers and investments. There is no guarantee that these allocation techniques and decisions will produce the desired results. It is possible to lose money on an investment in a fund as a result of these allocation decisions. If a fund's investment strategies do not perform as expected, the fund could underperform other funds with similar investment objectives or lose money. Moreover, buying and selling securities to adjust the fund's asset allocation may increase portfolio turnover and generate transaction costs.

Investment advisors with large assets under management in a Fund, or in other funds that have the same strategy as a Fund, may have difficulty fully investing such Fund's assets according to its investment objective due to potential liquidity constraints and high transaction costs. Typically, small-cap, mid-cap, and emerging market equity funds are more susceptible to such a risk. A Fund may add additional investment advisors or close the Fund to new investors to address such risks.

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**Passive Management (Index Funds)**

Some funds (including index funds and hybrid funds that include a passive component) use a passive, or indexing, investment approach. Funds that are pure index funds do not attempt to manage market volatility, use defensive strategies, or reduce the effect of any long-term periods of poor stock or bond performance. Some index funds attempt to fully replicate their relevant target index by investing primarily in the securities held by the index in approximately the same proportion of the weightings in the index. However, because of the difficulty of executing some relatively small securities trades, other index funds may use a "sampling" approach and may not be invested in the less heavily weighted securities held by the index. Some index funds may invest in index futures, swaps, and/or exchange-traded funds on a daily basis in an effort to minimize tracking error relative to the benchmark.

It is unlikely that an index fund's performance will perfectly correlate with the performance of the fund's relevant index. An index fund's ability to match the performance of its index may be affected by many factors, such as fund expenses, the timing of cash flows into and out of the fund, changes in securities markets, and changes in the composition of the index.

The providers of the Funds' respective underlying indexes do not provide any warranty or accept any liability for the quality, accuracy, or completeness of any index or its related data. Those managing an index fund's investments manage such fund consistently with the underlying index provided by the index provider and do not provide any warranty or guarantee against the index provider's or its agent's errors. Errors in the quality, accuracy, and completeness of the data used to compile an underlying index may occur and may not be identified and corrected in a timely manner, or at all. Such errors may negatively or positively impact the performance of a fund.

Unusual market conditions may cause an index provider to postpone a scheduled rebalance, which could cause a fund's underlying index to vary from its normal or expected composition. The postponement of a scheduled rebalance, particularly in a time of market volatility, could mean that constituents that would otherwise be removed at rebalance due to changes in market capitalizations, issuer credit ratings, or other reasons may remain, causing the performance and constituents of the underlying index to vary from those expected under normal conditions. Apart from scheduled rebalances, an index provider may carry out additional index rebalances due to unusual market conditions or in order, for example, to correct an error in the selection of index constituents. When an index is rebalanced and an index fund in turn rebalances its portfolio, such fund and its shareholders bear any related transaction costs and market exposure.

**Cash Management**

A Fund may have uninvested cash balances pending investment in other securities, pending payment of redemptions, or in other circumstances where liquidity is necessary or desirable. A Fund may hold uninvested cash; invest it in cash equivalents such as money market funds, including the Principal Funds, Inc. - Government Money Market Fund; lend it to other Funds pursuant to the Funds' interfund lending facility; and/or invest in other instruments that those managing the Fund's assets deem appropriate for cash management purposes. Generally, these types of investments offer less potential for gains than other types of securities. For example, to attempt to provide returns similar to its benchmark, a Fund (regardless of how it designates usage of derivatives and investment companies) may invest uninvested cash in derivatives, such as total return swaps, the credit default swap index (CDX), stock index futures contracts, or exchange-traded funds ("ETFs"), including Principal Exchange-Traded Funds ETFs. In selecting such investments, Principal Global Investors, LLC ("PGI"), the Funds' investment advisor, may have conflicts of interest due to economic or other incentives to make or retain an investment in certain affiliated funds instead of in other investments that may be appropriate for a Fund.

**Liquidity** 

The Funds have established a liquidity risk management program as required by the U.S. Securities and Exchange Commission's (the "SEC") Liquidity Rule. Under the program, PGI assesses, manages, and periodically reviews each Fund's liquidity risk, which is the risk that a Fund could not meet requests to redeem shares issued by the Fund without significant dilution of the remaining investors' interests in the Fund. As part of the program, PGI classifies each investment as a "highly liquid investment," "moderately liquid investment," "less liquid investment," or "illiquid investment." The liquidity of a Fund's portfolio investments is determined based on relevant market, trading, and investment-specific considerations under the program. To the extent that an investment is deemed to be an illiquid investment or a less liquid investment, a Fund can expect to be exposed to greater liquidity risk.

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Certain fund holdings may be deemed to be less liquid or illiquid because they cannot be readily sold without significantly impacting the value of the holdings. A fund is exposed to liquidity risk when trading volume, lack of a market maker, or legal restrictions impair its ability to sell particular securities or close derivative positions at an advantageous price. Funds with principal investment strategies that involve securities of companies with smaller market capitalizations, foreign securities, derivatives, high yield bonds, and bank loans, or securities with substantial market and/or credit risk, tend to have the greatest exposure to liquidity risk.

Liquidity risk also refers to the risk of unusually high redemption requests, redemption requests by certain large shareholders such as institutional investors or asset allocators, or other unusual market conditions that may make it difficult for a fund to sell investments within the allowable time period to meet redemptions. Meeting such redemption requests could require a fund to sell securities at reduced prices or under unfavorable conditions, which would reduce the value of the fund.

**Market Volatility and Securities Issuers**

The value of a fund's portfolio securities may decrease in response to overall stock or bond market movements. Markets tend to move in cycles, with periods of rising prices and periods of falling prices. Stocks tend to go up and down in value more than bonds. The value of a security may decline for reasons directly related to the issuer, such as management performance, financial leverage, and reduced demand for the issuer's goods or services. As a result, the value of an individual security or particular type of security can be more volatile than the market as a whole and can perform differently from the value of the market as a whole.

Additionally, U.S. and world economies, as well as markets (or certain market sectors), may experience greater volatility in response to the occurrence of, or the threat or potential of, natural or man-made disasters and geopolitical events, such as war, acts of terrorism, pandemics, military actions, trade disputes, tariffs, economic sanctions, inflation, rapid interest rate changes, supply chain disruptions, political instability, or social unrest. Moreover, if a fund's investments are concentrated in certain sectors, its performance could be worse than the overall market.

Global events can impact the securities markets. Russia's invasion of Ukraine in 2022 has resulted in sanctions being levied by the United States, European Union, and other countries against Russia. Russia's military actions and the resulting sanctions could adversely affect global energy and financial markets and, thus, could affect the value of a fund's investments, even beyond any direct exposure the fund may have to Russian issuers or the adjoining geographic regions. The extent and duration of the military action, sanctions, and resulting market disruptions could be substantial.

Health crises, such as a global pandemic, may exacerbate other pre-existing political, social, economic, market, and financial risks and negatively affect the global economy, as well as the economies of individual countries, the financial performance of individual companies and sectors, and the markets in general in significant ways.

Market disruption events could also impair the information technology and other operational systems upon which a fund's investment advisor or sub-advisor rely, and could otherwise disrupt the ability of the fund's service providers to perform essential tasks. In certain cases, an exchange or market may close or issue trading halts on either specific securities or even the entire market, which may result in a fund being, among other things, unable to buy or sell certain securities or financial instruments or accurately price its investments.

Governmental and quasi-governmental authorities and regulators throughout the world, such as the Federal Reserve, have in the past responded to major economic disruptions with a variety of significant fiscal and monetary policy changes, including but not limited to, direct capital infusions into companies, new monetary programs, and dramatic changes to interest rates. Such policy changes may adversely affect the value, volatility, and liquidity of dividend and interest-paying securities.

The impact of current and future market disruption events may last for an extended period of time and could result in a substantial economic downturn or recession. Such events could have significant adverse direct or indirect effects on the funds and their investments, and may result in a fund's inability to achieve its investment objective, cause funds to experience significant redemptions, cause the postponement of reconstitution/rebalance dates of passive funds' underlying indices, adversely affect the prices and liquidity of the securities and other instruments in which a fund invests, negatively impact the fund's performance, and cause losses on your investment in the fund. You should also review this Prospectus and the SAI to understand each Fund's discretion to implement temporary defensive measures, as well as the circumstances in which a Fund may satisfy redemption requests in-kind.

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**Securities Lending**

To generate additional income, a Fund may lend its portfolio securities to broker-dealers and other institutional borrowers to the extent permitted under the Investment Company Act of 1940, as amended (the "1940 Act") or the rules, regulations, or interpretations thereunder. A Fund that lends its securities will continue to receive amounts equal to the interest or dividend payments generated by the loaned securities. In addition to receiving these amounts, the Fund generates income on the loaned securities by receiving a fee from the borrower, and by earning interest on the collateral received from the borrower. A negotiated portion of the income is paid to a securities lending agent (e.g., a bank or trust company) that arranged the loan. During the term of the loan, the Fund's investment performance will reflect changes in the value of the loaned securities.

A borrower's obligations under a securities loan is secured continuously by collateral posted by the borrower and held by the custodian in an amount at least equal to the market value of the loaned securities. Generally, cash collateral that a Fund receives from securities lending activities will be invested in money market funds, which may include the Principal Funds, Inc. - Government Money Market Fund, which is managed by PGI and for which PGI receives a management fee. Collateral may also be invested in unaffiliated money market funds.

Securities lending involves exposure to certain risks, including the risk of losses resulting from problems in the settlement and accounting process; the risk of a mismatch between the return on cash collateral reinvestments and the fees each Fund has agreed to pay a borrower; and credit, legal, counterparty, and market risk. A Fund's participation in a securities lending transaction may affect the amount, timing, and character of distributions derived from such transaction to shareholders. Qualified dividend income does not include "payments in lieu of dividends," which the Funds anticipate they will receive in securities lending transactions.

**Temporary Defensive Measures**

From time to time, as part of its investment strategy, a Fund may invest without limit in cash and cash equivalents for temporary defensive purposes in response to adverse market, economic, or political conditions. For this purpose, cash equivalents include: bank notes, bank certificates of deposit, bankers' acceptances, repurchase agreements, commercial paper, and commercial paper master notes, which are floating rate debt instruments without a fixed maturity. In addition, a Fund may purchase U.S. government securities, preferred stocks, and debt securities, whether or not convertible into or carrying rights for common stock. There is no limit on the extent to which a Fund may take temporary defensive measures. In taking such measures, a Fund may lose the benefit of upswings and may limit its ability to meet, or fail to achieve, its investment objective.

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**Strategy and Risk Table**

The following table lists each Fund and identifies whether the strategies and risks discussed in this section (listed in alphabetical order and not in order of significance) are principal for a Fund. The risks described below for each Fund that operates as a fund of funds (as identified in the table) include risks at both the fund of funds level and underlying funds level. Each Fund is also subject to the risks of any underlying funds in which it invests.

The SAI contains additional information about investment strategies and their related risks.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **INVESTMENT STRATEGIES<br>AND RISKS** | **CALIFORNIA<br>MUNICIPAL** | **CORE FIXED<br>INCOME** | **CORE PLUS<br>BOND** | **DIVERSIFIED<br>INCOME** | **DIVERSIFIED<br>INTERNATIONAL** |
| Bank Loans (also known as Senior Floating Rate Interests) | | | | X | |
| Convertible Securities | | | | | |
| Counterparty Risk | X | | X  | X | |
| Derivatives | | | X | X | |
| Discretionary Liquidity Fee | | | | | |
| Emerging Markets | | | X | X | X |
| Equity Securities | | | | | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Growth Style | | | | | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Smaller Companies | | | | | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Value Style | | | | | X |
| Fixed-Income Securities | X | X | X | X | |
| Foreign Currency | | | X  | X | X |
| Foreign Securities | | X | X | X | X |
| Frequent Trading | | | | | |
| Fund of Funds | | | | | |
| Geographic Concentration (Municipal Obligations) | X | | | | |
| Hedging | | | X | X | |
| High Portfolio Turnover  | | | X | | |
| High Yield Securities | X | | X | X | |
| Industrial Revenue Bond | X | | | | |
| Industry Concentration | | | | | |
| Inverse Floating Rate <br>Investments | X | | | | |
| Investment Company <br>Securities | | | | | |
| Leverage | X | | X | | |
| Municipal Obligations and AMT-Subject Bonds | X | | | | |
| Portfolio Duration | X | X | X | X | |
| Preferred Securities | | | | X | |
| Real Estate Investment Trusts ("REITs") | | | | | |
| Real Estate Securities | | X | X | | |
| Redemption and Large Transaction Risk | X | X | X | X | X |
| Repurchase Agreements | | | | | |
| Securitized Products | | X | X | X | |
| Sovereign Debt Risk | | | | | |
| U.S. Government and U.S. Government-Sponsored Securities | | X | X | | |
| Volatility Mitigation | | | | | |

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|:---|:---|:---|:---|:---|:---|
| **INVESTMENT STRATEGIES<br>AND RISKS** | **EQUITY<br>INCOME** | **FINISTERRE<br>EMERGING<br>MARKETS TOTAL<br>RETURN BOND** | **GLOBAL<br>EMERGING<br>MARKETS** | **GLOBAL REAL<br>ESTATE<br>SECURITIES** | **GOVERNMENT &<br>HIGH QUALITY<br>BOND** |
| Bank Loans (also known as Senior Floating Rate Interests) | | | | | |
| Convertible Securities | | X  | | | |
| Counterparty Risk | | X | | | |
| Derivatives | | X | | | X |
| Discretionary Liquidity Fee | | | | | |
| Emerging Markets | | X | X | | |
| Equity Securities | X | | X | X | |
| &nbsp;&nbsp;&nbsp;&nbsp;• Growth Style | | | X | X | |
| &nbsp;&nbsp;&nbsp;&nbsp;• Smaller Companies | X  | | X | X | |
| &nbsp;&nbsp;&nbsp;&nbsp;• Value Style | X | | X  | X | |
| Fixed-Income Securities | | X | | | X |
| Foreign Currency | | X | X | X | |
| Foreign Securities | X | X | X | X | |
| Frequent Trading | | | | | |
| Fund of Funds | | | | | |
| Geographic Concentration (Municipal Obligations) | | | | | |
| Hedging | | X | | | |
| High Portfolio Turnover  | | X | | | X |
| High Yield Securities | | X | | | |
| Industrial Revenue Bond | | | | | |
| Industry Concentration | | | | X | |
| Inverse Floating Rate <br>Investments | | | | | |
| Investment Company <br>Securities | | | | | |
| Leverage | | X | | | |
| Municipal Obligations and AMT-Subject Bonds | | | | | |
| Portfolio Duration | | X | | | X |
| Preferred Securities | | | | | |
| Real Estate Investment Trusts ("REITs") | | | | X | |
| Real Estate Securities | | | | X | X |
| Redemption and Large Transaction Risk | X | X | X | X | X |
| Repurchase Agreements | | | | | |
| Securitized Products | | | | | X |
| Sovereign Debt Risk | | | | | |
| U.S. Government and U.S. Government-Sponsored Securities | | X | | | X |
| Volatility Mitigation | | X | | | |

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|:---|:---|:---|:---|:---|:---|
| **INVESTMENT STRATEGIES<br>AND RISKS** | <br>**GOVERNMENT<br>MONEY MARKET** | **HIGH YIELD** | **INFLATION<br>PROTECTION** | **INTERNATIONAL BOND** | **INTERNATIONAL EQUITY** |
| Bank Loans (also known as Senior Floating Rate Interests) | | X | | | |
| Convertible Securities | | | | | |
| Counterparty Risk | X | | | X | |
| Derivatives | | | | X | |
| Discretionary Liquidity Fee | | | | | |
| Emerging Markets | | | | X | X |
| Equity Securities | | | | | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Growth Style | | | | | X  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Smaller Companies | | | | | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Value Style | | | | | X  |
| Fixed-Income Securities | X | X | X | X | |
| Foreign Currency | | | | X | X |
| Foreign Securities | | X | | X | X |
| Frequent Trading | | | | X | |
| Fund of Funds | | | | | |
| Geographic Concentration (Municipal Obligations) | | | | | |
| Hedging | | | | X | |
| High Portfolio Turnover  | | | X | | |
| High Yield Securities | | X | | | |
| Industrial Revenue Bond | | | | | |
| Industry Concentration | | | | | |
| Inverse Floating Rate <br>Investments | | | | | |
| Investment Company <br>Securities | X | | | | |
| Leverage | | | | | |
| Municipal Obligations and AMT-Subject Bonds | | | | | |
| Portfolio Duration | | X | X | X | |
| Preferred Securities | | | | | |
| Real Estate Investment Trusts ("REITs") | | | | | |
| Real Estate Securities | | | | | |
| Redemption and Large Transaction Risk | X | X | X | X | X |
| Repurchase Agreements | X | | | | |
| Securitized Products | | | | | |
| Sovereign Debt Risk | | | | X | |
| U.S. Government and U.S. Government-Sponsored Securities | X | | X | | |
| Volatility Mitigation | | | | | |

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|:---|:---|:---|:---|:---|:---|
| **INVESTMENT STRATEGIES<br>AND RISKS** | **LARGECAP<br>GROWTH I** | <br>**LARGECAP<br>S&P 500 INDEX** | **LARGECAP<br>VALUE III** | **MIDCAP** | **MIDCAP S&P 400<br>INDEX** |
| Bank Loans (also known as Senior Floating Rate Interests) |  |  |  |  |  |
| Convertible Securities |  |  |  |  |  |
| Counterparty Risk |  |  |  |  |  |
| Derivatives |  |  |  |  |  |
| Discretionary Liquidity Fee |  |  |  |  |  |
| Emerging Markets |  |  |  |  |  |
| Equity Securities | X | X | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Growth Style | X |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Smaller Companies | X |  | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Value Style |  |  | X |  |  |
| Fixed-Income Securities |  |  |  |  |  |
| Foreign Currency |  |  |  |  |  |
| Foreign Securities |  |  |  | X |  |
| Frequent Trading |  |  |  |  |  |
| Fund of Funds |  |  |  |  |  |
| Geographic Concentration (Municipal Obligations) |  |  |  |  |  |
| Hedging |  |  |  |  |  |
| High Portfolio Turnover  |  |  |  |  |  |
| High Yield Securities |  |  |  |  |  |
| Industrial Revenue Bond |  |  |  |  |  |
| Industry Concentration |  | X<sup>(1)</sup> |  |  | X<sup>(1)</sup> |
| Inverse Floating Rate <br>Investments |  |  |  |  |  |
| Investment Company <br>Securities |  |  | X |  |  |
| Leverage |  |  |  |  |  |
| Municipal Obligations and AMT-Subject Bonds |  |  |  |  |  |
| Portfolio Duration |  |  |  |  |  |
| Preferred Securities |  |  |  |  |  |
| Real Estate Investment Trusts ("REITs") |  |  |  |  |  |
| Real Estate Securities |  |  |  |  |  |
| Redemption and Large Transaction Risk | X | X | X | X | X |
| Repurchase Agreements |  |  |  |  |  |
| Securitized Products |  |  |  |  |  |
| Sovereign Debt Risk |  |  |  |  |  |
| U.S. Government and U.S. Government-Sponsored Securities |  |  |  |  |  |
| Volatility Mitigation |  |  |  |  |  |

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<sup>(1)</sup>  The Fund will not concentrate (i.e., invest more than 25% of its assets) its investments in a particular industry except to the extent the Index is so concentrated.

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|:---|:---|:---|:---|:---|:---|
| **INVESTMENT STRATEGIES<br>AND RISKS** | **MIDCAP VALUE I** | **MONEY MARKET** | **OVERSEAS** | **PRINCIPAL<br>CAPITAL<br>APPRECIATION** | **PRINCIPAL<br>LIFETIME<br>STRATEGIC<br>INCOME** |
| Bank Loans (also known as Senior Floating Rate Interests) | | | | | |
| Convertible Securities | | | | | |
| Counterparty Risk | | X | | | X |
| Derivatives | | | | | X |
| Discretionary Liquidity Fee | | X | | | |
| Emerging Markets | | | X | | |
| Equity Securities | X | | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Growth Style | | | | | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Smaller Companies | X | | X | X  | |
| &nbsp;&nbsp;&nbsp;&nbsp;• Value Style | X | | X | | X |
| Fixed-Income Securities | | X | | | X |
| Foreign Currency | | | X | | X |
| Foreign Securities | | X | X | | X |
| Frequent Trading | | | | | |
| Fund of Funds | | | | | X |
| Geographic Concentration (Municipal Obligations) | | | | | |
| Hedging | | | | | |
| High Portfolio Turnover  | | | | | |
| High Yield Securities | | | | | |
| Industrial Revenue Bond | | | | | |
| Industry Concentration | | | | | |
| Inverse Floating Rate <br>Investments | | | | | |
| Investment Company <br>Securities | | | | | X |
| Leverage | | | | | |
| Municipal Obligations and AMT-Subject Bonds | | | | | |
| Portfolio Duration | | | | | X  |
| Preferred Securities | | | | | |
| Real Estate Investment Trusts ("REITs") | | | | | |
| Real Estate Securities | | | | | |
| Redemption and Large Transaction Risk | X | X | X | X | X |
| Repurchase Agreements | | X | | | |
| Securitized Products | | | | | X |
| Sovereign Debt Risk | | | | | |
| U.S. Government and U.S. Government-Sponsored Securities | | X | | | X |
| Volatility Mitigation | | | | | |

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<sup>(1)</sup>  The Fund will not concentrate (i.e., invest more than 25% of its assets) its investments in a particular industry except to the extent the Index is so concentrated.

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|:---|:---|:---|:---|:---|:---|
| **INVESTMENT STRATEGIES<br>AND RISKS** | **PRINCIPAL<br>LIFETIME 2015** | **PRINCIPAL<br>LIFETIME 2020** | **PRINCIPAL<br>LIFETIME 2025** | **PRINCIPAL<br>LIFETIME 2030** | <br>**PRINCIPAL<br>LIFETIME 2035** |
| Bank Loans (also known as Senior Floating Rate Interests) |  |  |  |  |  |
| Convertible Securities |  |  |  |  |  |
| Counterparty Risk | X | X | X | X | X |
| Derivatives | X | X | X | X | X |
| Discretionary Liquidity Fee |  |  |  |  |  |
| Emerging Markets |  |  |  |  |  |
| Equity Securities | X | X | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Growth Style | X | X | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Smaller Companies |  |  |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Value Style | X | X | X | X | X |
| Fixed-Income Securities | X | X | X | X | X |
| Foreign Currency | X | X | X | X | X |
| Foreign Securities | X | X | X | X | X |
| Frequent Trading |  |  |  |  |  |
| Fund of Funds | X | X | X | X | X |
| Geographic Concentration (Municipal Obligations) |  |  |  |  |  |
| Hedging |  |  |  |  |  |
| High Portfolio Turnover  |  |  |  |  |  |
| High Yield Securities |  |  |  |  |  |
| Industrial Revenue Bond |  |  |  |  |  |
| Industry Concentration |  |  |  |  |  |
| Inverse Floating Rate <br>Investments |  |  |  |  |  |
| Investment Company <br>Securities | X | X | X | X | X |
| Leverage |  |  |  |  |  |
| Municipal Obligations and AMT-Subject Bonds |  |  |  |  |  |
| Portfolio Duration | X | X | X | X | X |
| Preferred Securities |  |  |  |  |  |
| Real Estate Investment Trusts ("REITs") |  |  |  |  |  |
| Real Estate Securities |  |  |  |  |  |
| Redemption and Large Transaction Risk | X | X | X | X | X |
| Repurchase Agreements |  |  |  |  |  |
| Securitized Products | X | X | X | X | X |
| Sovereign Debt Risk |  |  |  |  |  |
| U.S. Government and U.S. Government-Sponsored Securities | X | X | X | X | X |
| Volatility Mitigation |  |  |  |  |  |

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|:---|:---|:---|:---|:---|:---|
| **INVESTMENT STRATEGIES<br>AND RISKS** | **PRINCIPAL<br>LIFETIME 2040** | **PRINCIPAL<br>LIFETIME 2045** | **PRINCIPAL<br>LIFETIME 2050** | **PRINCIPAL<br>LIFETIME 2055** | <br>**PRINCIPAL<br>LIFETIME 2060** |
| Bank Loans (also known as Senior Floating Rate Interests) |  |  |  |  |  |
| Convertible Securities |  |  |  |  |  |
| Counterparty Risk | X | X | X | X | X |
| Derivatives | X | X | X | X | X |
| Discretionary Liquidity Fee |  |  |  |  |  |
| Emerging Markets | X | X | X | X | X |
| Equity Securities | X | X | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Growth Style | X | X | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Smaller Companies | X | X | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Value Style | X | X  | X | X | X |
| Fixed-Income Securities | X | X | X | X | X |
| Foreign Currency | X | X | X | X | X |
| Foreign Securities | X | X | X | X | X |
| Frequent Trading |  |  |  |  |  |
| Fund of Funds | X | X | X | X | X |
| Geographic Concentration (Municipal Obligations) |  |  |  |  |  |
| Hedging |  |  |  |  |  |
| High Portfolio Turnover  |  |  |  |  |  |
| High Yield Securities |  |  |  |  |  |
| Industrial Revenue Bond |  |  |  |  |  |
| Industry Concentration |  |  |  |  |  |
| Inverse Floating Rate <br>Investments |  |  |  |  |  |
| Investment Company <br>Securities | X | X | X | X | X |
| Leverage |  |  |  |  |  |
| Municipal Obligations and AMT-Subject Bonds |  |  |  |  |  |
| Portfolio Duration | X | X | X | X | X |
| Preferred Securities |  |  |  |  |  |
| Real Estate Investment Trusts ("REITs") |  |  |  |  |  |
| Real Estate Securities |  |  |  |  |  |
| Redemption and Large Transaction Risk | X | X | X | X | X |
| Repurchase Agreements |  |  |  |  |  |
| Securitized Products | X |  |  |  |  |
| Sovereign Debt Risk |  |  |  |  |  |
| U.S. Government and U.S. Government-Sponsored Securities | X |  |  |  |  |
| Volatility Mitigation |  |  |  |  |  |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **INVESTMENT STRATEGIES<br>AND RISKS** | **PRINCIPAL<br>LIFETIME 2065** | **PRINCIPAL<br>LIFETIME 2070** | **PRINCIPAL<br>LIFETIME<br>HYBRID INCOME** | **PRINCIPAL<br>LIFETIME<br>HYBRID 2015** | <br>**PRINCIPAL<br>LIFETIME<br>HYBRID 2020** |
| Bank Loans (also known as Senior Floating Rate Interests) |  |  |  |  |  |
| Convertible Securities |  |  |  |  |  |
| Counterparty Risk | X | X | X | X | X |
| Derivatives | X | X | X | X | X |
| Discretionary Liquidity Fee |  |  |  |  |  |
| Emerging Markets | X | X |  |  |  |
| Equity Securities | X | X | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Growth Style | X | X | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Smaller Companies | X | X |  |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Value Style | X | X | X | X | X |
| Fixed-Income Securities | X | X | X | X | X |
| Foreign Currency | X | X | X | X | X |
| Foreign Securities | X | X | X | X | X |
| Frequent Trading |  |  |  |  |  |
| Fund of Funds | X | X | X | X | X |
| Geographic Concentration (Municipal Obligations) |  |  |  |  |  |
| Hedging |  |  |  |  |  |
| High Portfolio Turnover  |  |  |  |  |  |
| High Yield Securities |  |  |  |  |  |
| Industrial Revenue Bond |  |  |  |  |  |
| Industry Concentration |  |  |  |  |  |
| Inverse Floating Rate <br>Investments |  |  |  |  |  |
| Investment Company <br>Securities | X | X | X | X | X |
| Leverage |  |  |  |  |  |
| Municipal Obligations and AMT-Subject Bonds |  |  |  |  |  |
| Portfolio Duration | X | X | X | X | X |
| Preferred Securities |  |  |  |  |  |
| Real Estate Investment Trusts ("REITs") |  |  |  |  |  |
| Real Estate Securities |  |  |  |  |  |
| Redemption and Large Transaction Risk | X | X | X | X | X |
| Repurchase Agreements |  |  |  |  |  |
| Securitized Products |  |  | X | X | X |
| Sovereign Debt Risk |  |  |  |  |  |
| U.S. Government and U.S. Government-Sponsored Securities |  |  | X | X | X |
| Volatility Mitigation |  |  |  |  |  |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **INVESTMENT STRATEGIES<br>AND RISKS** | **PRINCIPAL<br>LIFETIME<br>HYBRID 2025** | **PRINCIPAL<br>LIFETIME<br>HYBRID 2030** | **PRINCIPAL<br>LIFETIME<br>HYBRID 2035** | **PRINCIPAL<br>LIFETIME<br>HYBRID 2040** | <br>**PRINCIPAL<br>LIFETIME<br>HYBRID 2045** |
| Bank Loans (also known as Senior Floating Rate Interests) |  |  |  |  |  |
| Convertible Securities |  |  |  |  |  |
| Counterparty Risk | X | X | X | X | X |
| Derivatives | X | X | X | X | X |
| Discretionary Liquidity Fee |  |  |  |  |  |
| Emerging Markets |  |  |  | X | X |
| Equity Securities | X | X | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Growth Style | X | X | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Smaller Companies |  |  |  | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Value Style | X | X | X | X | X |
| Fixed-Income Securities | X | X | X | X | X |
| Foreign Currency | X | X | X | X | X |
| Foreign Securities | X | X | X | X | X |
| Frequent Trading |  |  |  |  |  |
| Fund of Funds | X | X | X | X | X |
| Geographic Concentration (Municipal Obligations) |  |  |  |  |  |
| Hedging |  |  |  |  |  |
| High Portfolio Turnover  |  |  |  |  |  |
| High Yield Securities |  |  |  |  |  |
| Industrial Revenue Bond |  |  |  |  |  |
| Industry Concentration |  |  |  |  |  |
| Inverse Floating Rate <br>Investments |  |  |  |  |  |
| Investment Company <br>Securities | X | X | X | X | X |
| Leverage |  |  |  |  |  |
| Municipal Obligations and AMT-Subject Bonds |  |  |  |  |  |
| Portfolio Duration | X | X | X | X | X |
| Preferred Securities |  |  |  |  |  |
| Real Estate Investment Trusts ("REITs") |  |  |  |  |  |
| Real Estate Securities |  |  |  |  |  |
| Redemption and Large Transaction Risk | X | X | X | X | X |
| Repurchase Agreements |  |  |  |  |  |
| Securitized Products | X | X | X | X |  |
| Sovereign Debt Risk |  |  |  |  |  |
| U.S. Government and U.S. Government-Sponsored Securities | X | X | X | X |  |
| Volatility Mitigation |  |  |  |  |  |

---

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---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **INVESTMENT STRATEGIES<br>AND RISKS** | **PRINCIPAL<br>LIFETIME<br>HYBRID 2050** | **PRINCIPAL<br>LIFETIME<br>HYBRID 2055** | **PRINCIPAL<br>LIFETIME<br>HYBRID 2060** | **PRINCIPAL<br>LIFETIME<br>HYBRID 2065** | <br>**PRINCIPAL<br>LIFETIME<br>HYBRID 2070** |
| Bank Loans (also known as Senior Floating Rate Interests) |  |  |  |  |  |
| Convertible Securities |  |  |  |  |  |
| Counterparty Risk | X | X | X | X | X |
| Derivatives | X | X | X | X | X |
| Discretionary Liquidity Fee |  |  |  |  |  |
| Emerging Markets | X | X | X | X | X |
| Equity Securities | X | X | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Growth Style | X | X | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Smaller Companies | X | X | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Value Style | X | X | X | X | X |
| Fixed-Income Securities | X | X | X | X | X |
| Foreign Currency | X | X | X | X | X |
| Foreign Securities | X | X | X | X | X |
| Frequent Trading |  |  |  |  |  |
| Fund of Funds | X | X | X | X | X |
| Geographic Concentration (Municipal Obligations) |  |  |  |  |  |
| Hedging |  |  |  |  |  |
| High Portfolio Turnover  |  |  |  |  |  |
| High Yield Securities |  |  |  |  |  |
| Industrial Revenue Bond |  |  |  |  |  |
| Industry Concentration |  |  |  |  |  |
| Inverse Floating Rate <br>Investments |  |  |  |  |  |
| Investment Company <br>Securities | X | X | X | X | X |
| Leverage |  |  |  |  |  |
| Municipal Obligations and AMT-Subject Bonds |  |  |  |  |  |
| Portfolio Duration | X | X | X | X | X |
| Preferred Securities |  |  |  |  |  |
| Real Estate Investment Trusts ("REITs") |  |  |  |  |  |
| Real Estate Securities |  |  |  |  |  |
| Redemption and Large Transaction Risk | X | X | X | X | X |
| Repurchase Agreements |  |  |  |  |  |
| Securitized Products |  |  |  |  |  |
| Sovereign Debt Risk |  |  |  |  |  |
| U.S. Government and U.S. Government-Sponsored Securities |  |  |  |  |  |
| Volatility Mitigation |  |  |  |  |  |

---

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **INVESTMENT STRATEGIES<br>AND RISKS** | **REAL ESTATE<br>SECURITIES** | **SAM<br>BALANCED** | **SAM<br>CONSERVATIVE<br>BALANCED** | **SAM<br>CONSERVATIVE<br>GROWTH** | <br>**SAM FLEXIBLE<br>INCOME** |
| Bank Loans (also known as Senior Floating Rate Interests) | | | | | |
| Convertible Securities | | | | | |
| Counterparty Risk | | | | | |
| Derivatives | | | | | |
| Discretionary Liquidity Fee | | | | | |
| Emerging Markets | | X | X | X | |
| Equity Securities | X | X | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Growth Style | X | X | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Smaller Companies | X | X | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Value Style | X | X | X | X | X |
| Fixed-Income Securities | | X | X | X | X |
| Foreign Currency | | X | X | X | X |
| Foreign Securities | | X | X | X | X |
| Frequent Trading | | | | | |
| Fund of Funds | | X | X | X | X |
| Geographic Concentration (Municipal Obligations) | | | | | |
| Hedging | | | | | |
| High Portfolio Turnover  | | | | | |
| High Yield Securities | | | X | | X |
| Industrial Revenue Bond | | | | | |
| Industry Concentration | X | | | | |
| Inverse Floating Rate <br>Investments | | | | | |
| Investment Company <br>Securities | | X | X | X | X |
| Leverage | | | | | |
| Municipal Obligations and AMT-Subject Bonds | | | | | |
| Portfolio Duration | | X | X | X | X |
| Preferred Securities | | | | | |
| Real Estate Investment Trusts ("REITs") | X | | | | |
| Real Estate Securities | X | | | | |
| Redemption and Large Transaction Risk | X | X | X | X | X |
| Repurchase Agreements | | | | | |
| Securitized Products | | | X | | X |
| Sovereign Debt Risk | | | | | |
| U.S. Government and U.S. Government-Sponsored Securities | | | | | X |
| Volatility Mitigation | | | | | |

---

------

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **INVESTMENT STRATEGIES<br>AND RISKS** | **SAM STRATEGIC<br>GROWTH** | **SHORT-TERM<br>INCOME** | **SMALLCAP** | **SMALLCAP<br>GROWTH I** | <br>**SMALLCAP<br>S&P 600 INDEX** |
| Bank Loans (also known as Senior Floating Rate Interests) |  |  |  |  |  |
| Convertible Securities |  |  |  |  |  |
| Counterparty Risk |  |  |  |  |  |
| Derivatives |  | X |  |  |  |
| Discretionary Liquidity Fee |  |  |  |  |  |
| Emerging Markets | X |  |  |  |  |
| Equity Securities | X |  | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Growth Style | X |  |  | X |  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Smaller Companies | X |  | X | X | X |
| &nbsp;&nbsp;&nbsp;&nbsp;• Value Style | X |  |  |  |  |
| Fixed-Income Securities |  | X |  |  |  |
| Foreign Currency | X |  |  |  |  |
| Foreign Securities | X | X |  |  |  |
| Frequent Trading |  |  |  |  |  |
| Fund of Funds | X |  |  |  |  |
| Geographic Concentration (Municipal Obligations) |  |  |  |  |  |
| Hedging |  |  |  |  |  |
| High Portfolio Turnover  |  |  |  |  |  |
| High Yield Securities |  |  |  |  |  |
| Industrial Revenue Bond |  |  |  |  |  |
| Industry Concentration |  |  |  |  | X<sup>(1)</sup> |
| Inverse Floating Rate <br>Investments |  |  |  |  |  |
| Investment Company <br>Securities | X |  |  |  |  |
| Leverage |  |  |  |  |  |
| Municipal Obligations and AMT-Subject Bonds |  |  |  |  |  |
| Portfolio Duration |  | X |  |  |  |
| Preferred Securities |  |  |  |  |  |
| Real Estate Investment Trusts ("REITs") |  |  |  |  |  |
| Real Estate Securities |  | X |  |  |  |
| Redemption and Large Transaction Risk | X | X | X | X | X |
| Repurchase Agreements |  |  |  |  |  |
| Securitized Products |  | X |  |  |  |
| Sovereign Debt Risk |  |  |  |  |  |
| U.S. Government and U.S. Government-Sponsored Securities |  | X |  |  |  |
| Volatility Mitigation |  |  |  |  |  |

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<sup>(1)</sup>  The Fund will not concentrate (i.e., invest more than 25% of its assets) its investments in a particular industry except to the extent the Index is so concentrated.

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| | | |
|:---|:---|:---|
| **INVESTMENT STRATEGIES<br>AND RISKS** | **SMALLCAP<br>VALUE II** | **TAX-EXEMPT<br>BOND** |
| Bank Loans (also known as Senior Floating Rate Interests) | | |
| Convertible Securities | | |
| Counterparty Risk | | X |
| Derivatives | | |
| Discretionary Liquidity Fee | | |
| Emerging Markets | | |
| Equity Securities | X | |
| &nbsp;&nbsp;&nbsp;&nbsp;• Growth Style | | |
| &nbsp;&nbsp;&nbsp;&nbsp;• Smaller Companies | X | |
| &nbsp;&nbsp;&nbsp;&nbsp;• Value Style | X | |
| Fixed-Income Securities | | X |
| Foreign Currency | | |
| Foreign Securities | | |
| Frequent Trading | | |
| Fund of Funds | | |
| Geographic Concentration (Municipal Obligations) | | X |
| Hedging | | |
| High Portfolio Turnover  | | |
| High Yield Securities | | X |
| Industrial Revenue Bond | | X |
| Industry Concentration | | |
| Inverse Floating Rate <br>Investments | | X |
| Investment Company <br>Securities | | |
| Leverage | | X |
| Municipal Obligations and AMT-Subject Bonds | | X |
| Portfolio Duration | | X |
| Preferred Securities | | |
| Real Estate Investment Trusts ("REITs") | | |
| Real Estate Securities | | |
| Redemption and Large Transaction Risk | X | X |
| Repurchase Agreements | | |
| Securitized Products | | |
| Sovereign Debt Risk | | |
| U.S. Government and U.S. Government-Sponsored Securities | | |
| Volatility Mitigation | | |

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**Bank Loans (also known as Senior Floating Rate Interests)**

Bank loans typically hold the most senior position in the capital structure of a business entity (the "Borrower"), are secured by specific collateral, and have a claim on the Borrower's assets and/or stock that is senior to that held by the Borrower's unsecured subordinated debtholders and stockholders. The proceeds of bank loans primarily are used to finance leveraged buyouts, recapitalizations, mergers, acquisitions, stock repurchases, dividends, and, to a lesser extent, to finance internal growth and for other corporate purposes. Bank loans are typically structured and administered by a financial institution that acts as the agent of the lenders participating in the bank loan. The Funds may purchase bank loans that are rated below-investment-grade (sometimes called "junk") or will be comparable if unrated, 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. Most bank loans are not traded on any national securities exchange. Bank loans generally have less liquidity than investment-grade bonds, and there may be less public information available about them. Bank loan interests may not be considered "securities," and purchasers, therefore, may not be entitled to rely on the anti-fraud protections of the federal securities laws.

The primary and secondary market for bank loans may be subject to irregular trading activity, wide bid/ask spreads, and extended trade settlement periods, which may cause a fund to be unable to realize full value and, thus, cause a material decline in a fund's net asset value. Because transactions in bank loans may be subject to extended settlement periods, a fund may not receive proceeds from the sale of a bank loan for a period of time after the sale. As a result, sale proceeds may not be available to make additional investments or to meet a fund's redemption obligations for a period of time after the sale of the bank loans, which could lead to a fund having to sell other investments, borrow to meet obligations, or borrow to remain fully invested while awaiting settlement.

Bank loans pay interest at rates that 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, the Secured Overnight Financing Rate (SOFR), or the prime rate offered by one or more major U.S. banks.

Bank loans generally are subject to mandatory and/or optional prepayment. Because of these prepayment conditions and because there may be significant economic incentives for the borrower to repay, prepayments may occur.

**Convertible Securities**

Convertible securities are usually fixed-income securities that a fund has the right to exchange for equity securities at a specified conversion price. Convertible securities could also include corporate bonds, notes, or preferred stocks of U.S. or foreign issuers. Convertible securities allow a fund to realize additional returns if the market price of the equity securities exceeds the conversion price. For example, a fund may hold fixed-income securities that are convertible into shares of common stock at a conversion price of $10 per share. If the market value of the shares of common stock reached $12, the fund could realize an additional $2 per share by converting its fixed-income securities.

Convertible securities have lower yields than comparable fixed-income securities. In addition, at the time a convertible security is issued, the conversion price exceeds the market value of the underlying equity securities. Thus, convertible securities may provide lower returns than non-convertible fixed-income securities or equity securities depending upon changes in the price of the underlying equity securities. However, convertible securities permit a fund to realize some of the potential appreciation of the underlying equity securities with less risk of losing its initial investment.

Depending on the features of the convertible security, a fund will treat a convertible security as a fixed-income security, equity security, or preferred security for purposes of investment policies and limitations because of the unique characteristics of convertible securities. Funds that invest in convertible securities may invest in convertible securities that are below investment grade (sometimes referred to as "junk"). Many convertible securities are relatively illiquid.

**Counterparty Risk**

Counterparty risk is the risk that the counterparty to a contract or other obligation will be unable or unwilling to honor its obligations. If a counterparty fails to meet its contractual obligations, goes bankrupt, or otherwise experiences a business interruption, a fund could miss investment opportunities or otherwise hold investments it would prefer to sell, resulting in losses for the fund. In addition, a fund may suffer losses if a counterparty fails to comply with applicable laws or other requirements. Counterparty risk is pronounced during unusually adverse market conditions and is particularly acute in environments in which financial services firms are exposed to systemic risks.

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**Derivatives**

Generally, a derivative is a financial arrangement, the value of which is derived from, or based on, a traditional security, asset, or market index. A fund may invest in certain derivative strategies to earn income, manage or adjust the risk profile of the fund, replace more direct investments, or obtain exposure to certain markets. A fund may enter into forward commitment agreements, which call for the fund to purchase or sell a security on a future date at a fixed price. A fund may also enter into contracts to sell its investments either on demand or at a specific interval.

The risks associated with derivative investments include:

• increased volatility of a fund and/or the failure of the investment to mitigate volatility as intended;

• the inability of those managing investments of the fund to correctly predict the direction of securities prices, interest rates, currency exchange rates, asset values, and other economic factors;

• losses caused by unanticipated market movements, which may be substantially greater than a fund's initial investment and are potentially unlimited;

• the possibility that there may be no liquid secondary market, which may make it difficult or impossible to close out a position when desired;

• the possibility that the counterparty may fail to perform its obligations; and

• the inability to close out certain hedged positions to avoid adverse tax consequences.

There are many different types of derivatives and many different ways to use them. The specific derivatives that are principal strategies of each Fund are listed in its Fund Summary.

• Credit default swap agreements may be entered into by a fund as a "buyer" or "seller" of credit protection. Credit default swap agreements involve special risks because they may be difficult to value, are highly susceptible to liquidity and credit risk, and generally pay a return to the party that has paid the premium only in the event of an actual default by the issuer of the underlying obligation (as opposed to a credit downgrade or other indication of financial difficulty). Credit default swaps can increase credit risk because a fund has exposure to both the issuer of the referenced obligation and the counterparty to the credit default swap.

• Foreign currency contracts (such as foreign currency options and foreign currency forward and swap agreements) may be used by funds to increase exposure to a foreign currency or to shift exposure to foreign currency fluctuations from one country to another. A forward currency contract involves a privately negotiated obligation to purchase or sell a specific currency at a future date at a price set in the contract. For currency contracts, there is also a risk of government action through exchange controls that would restrict the ability of a fund to deliver or receive currency.

• Forwards, futures contracts, and options thereon (including commodities futures); options (including put or call options); and swap agreements and over-the-counter swap agreements (e.g., interest rate swaps, total return swaps, and credit default swaps) may be used by funds for hedging purposes in order to try to mitigate or protect against potential losses due to changing interest rates, securities prices, asset values, currency exchange rates, and other market conditions; non-hedging purposes to seek to increase the fund's income or otherwise enhance return; and as a low-cost method of gaining exposure to a particular market without investing directly in those securities or assets.

These derivative investments are subject to special risk considerations, particularly that changes in the value of the derivative may not correlate perfectly with, and may be more sensitive to market events than, the underlying asset, rate, or index, and the fund could lose more than the initial amount invested. In addition, if a fund has insufficient cash, it may have to sell securities from its portfolio to meet daily variation margin requirements, even when it may be disadvantageous to do so. Options and swap agreements also involve counterparty risk. With respect to options, there may be difference in trading hours for the options markets and the markets for the underlying securities (rate movements can take place in the underlying markets that cannot be reflected in the options markets) and an insufficient liquid secondary market for particular options.

• Index/structured securities are derivative securities whose value or performance is linked to other equity securities (such as depositary receipts), currencies, interest rates, indices, or other financial indicators (reference indices).

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**Discretionary Liquidity Fee**

A Fund may charge a liquidity fee of up to 2% of the value of shares redeemed if the Fund's Board of Directors (or PGI, in accordance with Board-approved guidelines) determines that doing so is in the best interests of the Fund. Accordingly, your redemptions from the Fund may be subject to a liquidity fee when you sell your shares at certain times.

**Emerging Markets**

The Funds consider a security to be tied economically to an emerging market if the issuer or guarantor of the security has its principal place of business or principal office in an emerging market, has its principal securities trading market in an emerging market, or derives a majority of its revenue from emerging markets. The Funds also consider a security to be tied economically to an emerging market if the currency of settlement of the security is the currency of the emerging market.

Usually, the term "emerging market" (also called a "developing market") means any market that is considered to be an emerging market by the international financial community (such as markets tied to securities included in the MSCI Emerging Markets Index or Bloomberg Emerging Markets USD Aggregate Bond Index). Emerging markets generally exclude the U.S., Canada, Japan, Hong Kong, Singapore, Australia, New Zealand, and most nations located in Western Europe, unless otherwise stated in the Fund Summary.

Investments in companies in emerging markets are subject to higher risks than investments in companies in more developed markets. These risks include:

• increased social, political, and economic instability;

• a smaller market for these securities and low or nonexistent trading volume that results in a lack of liquidity and greater price volatility;

• lack of publicly available information, including reports of payments of dividends or interest on outstanding securities;

• foreign government policies that may restrict opportunities, including restrictions on investment in issuers or industries deemed sensitive to national interests;

• relatively new capital market structure or market-oriented economy;

• the possibility that recent favorable economic developments may be slowed or reversed by unanticipated political or social events in these countries;

• restrictions that may make it difficult or impossible for a fund to vote proxies, exercise shareholder rights, pursue legal remedies, and obtain judgments in foreign courts; and

• possible losses through the holding of securities in domestic and foreign custodial banks and depositories.

In addition, many developing markets have experienced substantial and, in some periods, extremely high rates of inflation for many years. Inflation and rapid fluctuations in inflation rates have had and may continue to have negative effects on the economies, currencies, interest rates, and securities markets of those markets.

Repatriation of investment income, capital, and proceeds of sales by foreign investors may require governmental registration and/or approval in some developing markets. A fund could be adversely affected by delays in or a refusal to grant any required governmental registration or approval for repatriation.

Further, the economies of developing markets generally are heavily dependent upon international trade and, accordingly, have been and may continue to be adversely affected by trade barriers, exchange controls, managed adjustments in relative currency values, and other protectionist measures imposed or negotiated by the countries with which they trade.

The SEC, the U.S. Department of Justice, and other U.S. authorities may be limited in their ability to pursue bad actors, including instances of fraud in emerging markets. For example, in certain emerging markets, there are significant legal obstacles to obtaining information needed for investigations or litigation. Similar limitations apply to the pursuit of actions against individuals, including officers, who may have engaged in fraud or wrongdoing. In addition, local authorities often are constrained in their ability to assist U.S. authorities and overseas investors more generally. There are also legal or other obstacles to seeking access to funds in a foreign country.

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**Equity Securities**

Equity securities include common stocks, convertible securities, depositary receipts, rights (an offering of common stock to investors who currently own shares, which entitle them to buy subsequent issues at a discount from the offering price), and warrants (the right to purchase securities from the issuer at a specified price, normally higher than the current market price). Common stocks, the most familiar type, represent an equity (ownership) interest in a corporation. The value of a company's stock may fall as a result of factors directly relating to that company, such as decisions made by its management or lower demand for the company's products or services. A stock's value may also fall because of factors affecting not just the company, but also companies in the same industry or in a number of different industries, such as increases in production costs. The value of a company's stock may also be affected by changes in financial markets that are relatively unrelated to the company or its industry, such as changes in interest rates or currency exchange rates. In addition, a company's stock generally pays dividends only after the company invests in its own business and makes required payments to holders of its bonds and other debt. For this reason, the value of a company's stock will usually react more strongly than its bonds and other debt to actual or perceived changes in the company's financial condition or prospects.

Some funds focus their investments on certain market capitalization ranges. Market capitalization is defined as total current market value of a company's outstanding equity securities. The market capitalization of companies in a fund's portfolios and their related indexes will change over time, and, except to the extent consistent with its principal investment strategies (for example, for an index fund that uses a replication strategy), a fund will not automatically sell an investment just because it falls outside of the market capitalization range of its index(es).

<u>Growth Style</u>

The prices of growth stocks may be based largely on expectations of future earnings, and their prices can decline rapidly and significantly in reaction to negative news about such factors as earnings, revenues, the economy, political developments, or other news. Growth stocks may underperform value stocks and stocks in other broad style categories (and the stock market as a whole) over any period of time and may shift in and out of favor with investors generally, sometimes rapidly, depending on changes in market, economic, and other factors. As a result, a fund that holds substantial investments in growth stocks may underperform other funds that invest more broadly or favor different investment styles. Because growth companies typically reinvest their earnings, growth stocks typically do not pay dividends at levels associated with other types of stocks, if at all.

<u>Smaller Companies</u>

Investments in companies with smaller market capitalizations may involve greater risks and price volatility (wide, rapid fluctuations) than investments in larger, more mature companies. Small company stocks may decline in price as large company stocks rise, or rise in price while larger company stocks decline. The net asset value of a fund that invests a substantial portion of its assets in small company stocks may be more volatile than the net asset value of a fund that invests solely in larger company stocks. Small companies may be less significant within their industries and may be at a competitive disadvantage relative to their larger competitors. Smaller companies may be less mature than larger companies. At this earlier stage of development, the companies may have limited product lines, reduced market liquidity for their shares, limited financial resources, or less depth in management than larger or more established companies. While smaller companies may be subject to these additional risks, they may also realize more substantial growth than larger or more established companies.

Unseasoned issuers are companies with a record of less than three years continuous operation, including the operation of predecessors and parents. Many unseasoned issuers also may be small companies and involve the risks and price volatility associated with smaller companies. Unseasoned issuers by their nature have only a limited operating history that can be used for evaluating the company's growth prospects. As a result, these securities may place a greater emphasis on current or planned product lines and the reputation and experience of the company's management and less emphasis on fundamental valuation factors than would be the case for more mature growth companies.

<u>Value Style</u>

Value stocks present the risk that they may decline in price or never reach their expected full market value because the market fails to recognize the stock's intrinsic worth. Value stocks may underperform growth stocks and stocks in other broad style categories (and the stock market as a whole) over any period of time and may shift in and out of favor with investors generally, sometimes rapidly, depending on changes in market, economic, and other factors. As a result, a fund that holds substantial investments in value stocks may underperform other funds that invest more broadly or favor different investment styles.

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**Fixed-Income Securities**

Fixed-income securities include bonds and other debt instruments that are used by issuers to borrow money from investors (examples include corporate bonds, convertible securities, asset-and mortgage-backed securities, and municipal, agency, and U.S. government securities). The issuer of a fixed-income security generally pays the investor a fixed, variable, or floating rate of interest. The amount borrowed must be repaid at maturity. Some debt securities, such as zero coupon bonds, do not pay current interest, but are sold at a discount from their face values.

Fixed-income securities are sensitive to changes in interest rates. Interest rate changes can be sudden and unpredictable, and are influenced by a number of factors, including governmental policy, monetary policy, inflation expectations, perceptions of risk, and supply and demand for fixed-income securities. In general, fixed-income security prices rise when interest rates fall and fall when interest rates rise. An increase in interest rates from a low interest rate environment may lead to heightened volatility, rapid sales of fixed-income securities, and redemptions alongside reduced liquidity and dealer market-making capacity in fixed-income markets.

If interest rates fall, issuers of callable bonds may call (repay) securities with high interest rates before their maturity dates; this is known as call risk. In this case, an investor, such as a Fund, would likely reinvest the proceeds from these securities at lower interest rates, resulting in a decline in the Fund's income. Very low interest rates, including rates that fall below zero (where banks charge for depositing money), may detract from a Fund's performance and its ability to maintain positive returns to the extent the Fund is exposed to such interest rates. To the extent a Fund is exposed to an investment with a negative interest rate to maturity, the Fund would generate a negative return on that investment. Floating rate securities generally are less sensitive to interest rate changes but may decline in value if their interest rates do not rise as much, or as quickly, as interest rates in general. Conversely, floating rate securities will not generally increase in value if interest rates decline.

In June 2023, the Secured Overnight Financing Rate ("SOFR") replaced the London InterBank Offered Rate ("LIBOR") as the benchmark interest rate for dollar-denominated derivatives and loans in the United States pursuant to the Adjustable Interest Rate (LIBOR) Act. Prior to the adoption of SOFR, LIBOR was the globally accepted benchmark for interest rates; however, the United Kingdom's Financial Conduct Authority, which regulated LIBOR, ceased publication of LIBOR rates on June 30, 2023. Countries outside of the United States have opted to use different alternatives to LIBOR than SOFR. The effect of LIBOR's discontinuation and replacement on new or existing financial instruments or operational processes will vary depending on a number of factors, including, for example, fallback provisions in contracts, replacement language in contracts, and legislative action. In addition, LIBOR's discontinuation and replacement may affect the value, liquidity, or return on certain investments to which a Fund is exposed and may result in costs in connection with closing out positions and entering into new trades. These impacts are likely to persist until new reference rates and fallbacks for both legacy and new instruments and contracts are commercially accepted and market practices become settled. SOFR is calculated by short-term repurchase agreements, backed by U.S. Treasuries. LIBOR was a forward-looking rate, while SOFR reflects an overnight rate, making SOFR much less susceptible to market fluctuations and manipulations than LIBOR.

Fixed-income securities are also affected by the credit quality of the issuer. Investment-grade debt securities are medium and high-quality securities. Some bonds, such as lower grade or "junk" bonds, may have speculative characteristics and may be particularly sensitive to economic conditions and the financial condition of the issuers. Credit risk refers to the possibility that the issuer of the security will not be able to make principal and interest payments when due.

Additionally, a Fund's exposure to investments in companies with smaller market capitalizations may involve greater risks, price volatility (wide, rapid fluctuations), and less liquidity than investments in larger, more mature companies.

**Foreign Currency**

Certain of a fund's investments will be denominated in foreign currencies or traded in securities markets in which settlements are made in foreign currencies. Any income on such investments is generally paid to a fund in foreign currencies. In addition, funds may engage in foreign currency transactions for both hedging and investment purposes, as well as to increase exposure to a foreign currency or to shift exposure to foreign currency fluctuations from one country to another.

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The value of foreign currencies relative to the U.S. dollar varies continually, causing changes in the dollar value of a fund's portfolio investments (even if the local market price of the investments is unchanged) and changes in the dollar value of a fund's income available for distribution to its shareholders. The effect of changes in the dollar value of a foreign currency on the dollar value of a fund's assets and on the net investment income available for distribution may be favorable or unfavorable. Transactions in non-U.S. currencies are also subject to many of the risks of investing in foreign (non-U.S.) securities; for example, changes in foreign economies and political climates are more likely to affect a fund that has foreign currency exposure than a fund that invests exclusively in U.S. companies and currency. There also may be less government supervision of foreign markets, resulting in non-uniform accounting practices and less publicly available information. Transactions in foreign currencies, foreign currency denominated debt, and certain foreign currency options, futures contracts, and forward contracts (and similar instruments) may give rise to ordinary income or loss to the extent such income or loss results from fluctuations in the value of the foreign currency concerned.

A fund may incur costs in connection with conversions between various currencies. In addition, a fund may be required to liquidate portfolio assets, or may incur increased currency conversion costs, to compensate for a decline in the dollar value of a foreign currency occurring between the time when a fund declares and pays a dividend, or between the time when a fund accrues and pays an operating expense in U.S. dollars. To protect against a change in the foreign currency exchange rate between the date on which a fund contracts to purchase or sell a security and the settlement date for the purchase or sale, to gain exposure to one or more foreign currencies, or to "lock in" the equivalent of a dividend or interest payment in another currency, a fund might purchase or sell a foreign currency on a spot (i.e., cash) basis at the prevailing spot rate.

Currency hedging involves some of the same general risks and considerations as other transactions with similar instruments (i.e., derivative instruments) and hedging. Currency transactions are also subject to additional risks. Because currency control is of great importance to the issuing governments and influences economic planning and policy, purchases and sales of currency and related instruments can be adversely affected by government exchange controls, limitations or restrictions on repatriation of currency, and manipulations or exchange restrictions imposed by governments. These forms of governmental actions can result in losses to a fund if it is unable to deliver or receive currency or monies in settlement of obligations. They could also cause hedges the fund has entered into to be rendered useless, resulting in full currency exposure as well as incurring transaction costs. Settlement of a currency forward contract for the purchase of most currencies must occur at a bank based in the issuing nation. The ability to establish and close out positions on trading options on currency futures contracts is subject to the maintenance of a liquid market that may not always be available.

**Foreign Securities**

The Funds consider a security to be tied economically to countries outside the U.S. (a "foreign security") if the issuer or guarantor of the security has its principal place of business or principal office outside the U.S., has its principal securities trading market outside the U.S., or derives a majority of its revenue from outside the U.S. The Funds also consider a security to be a foreign security if the settlement currency for the security is currency of a country outside of the U.S.

There may be less publicly available information about foreign companies than U.S. companies, and information about foreign securities in which the Funds invest may be less reliable or complete. Foreign companies, including those listed on U.S. securities exchanges, may not be subject to the same uniform accounting, auditing, and financial reporting practices as are required of U.S. companies with respect to such matters as insider trading rules, tender offer regulation, accounting standards or auditor oversight, stockholder proxy requirements, and the requirements mandating timely and accurate disclosure of information. For example, the Chinese government has taken positions that prevent the Public Company Accounting Oversight Board from inspecting the audit work and practices of accounting firms in mainland China and Hong Kong for compliance with U.S. law and professional standards. In addition, securities of many foreign companies are less liquid and more volatile than securities of comparable U.S. companies. Commissions on foreign securities exchanges may be generally higher than those on U.S. exchanges.

Foreign markets also have different clearance and settlement procedures than those in U.S. markets. In certain markets, there have been times when settlements have been unable to keep pace with the volume of securities transactions, making it difficult to conduct these transactions. Delays in settlement could result in temporary periods when a portion of fund assets is not invested and earning no return. If a fund is unable to make intended security purchases due to settlement problems, the fund may miss attractive investment opportunities. In addition, a fund may incur a loss as a result of a decline in the value of its portfolio if it is unable to sell a security.

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With respect to certain foreign countries, there is the possibility of nationalization, expropriation, or confiscatory taxation, political or social instability, or diplomatic developments that could affect a fund's investments in those countries. In addition, a fund may also suffer losses due to differing accounting practices and treatments. Investments in foreign securities are subject to laws of the foreign country that may limit the amount and types of foreign investments. Changes of governments or of economic or monetary policies, in the U.S. or abroad, changes in dealings between nations, currency convertibility, or exchange rates could result in investment losses for a fund.

Foreign securities are often traded with less frequency and volume and, therefore, may have greater price volatility than is the case with many U.S. securities. Brokerage commissions, custodial services, and other costs relating to investment in foreign countries are generally more expensive than in the U.S. Though a fund intends to acquire the securities of foreign issuers where there are public trading markets, economic or political turmoil in a country in which a fund has a significant portion of its assets or deterioration of the relationship between the U.S. and a foreign country may reduce the liquidity of a fund's portfolio. The fund may have difficulty meeting a large number of redemption requests. Furthermore, there may be difficulties in obtaining or enforcing judgments against foreign issuers.

A fund may invest in a foreign company by purchasing depositary receipts. Depositary receipts are certificates of ownership of shares in a foreign-based issuer held by a bank or other financial institution. They are alternatives to purchasing the underlying security but are subject to the foreign securities risks to which they relate.

A fund may file claims to recover foreign withholding taxes on dividend and interest income (if any) received from issuers in certain countries and capital gains on the disposition of stocks or securities where such withholding tax reclaim is possible. Whether or when a fund will receive a withholding tax refund is within the control of the tax authorities in such countries. Where a fund expects to recover withholding taxes, the net asset value of a fund generally includes accruals for such tax refunds. If the likelihood of recovery materially decreases, accruals in the fund's net asset value for such refunds may be written down partially or in full, which will adversely affect the fund's net asset value. Shareholders in the fund at the time an accrual is written down will bear the impact of the resulting reduction in net asset value regardless of whether they were shareholders during the accrual period. Conversely, if a fund receives a tax refund that has not been previously accrued, shareholders in the fund at the time of the successful recovery will benefit from the resulting increase in the fund's net asset value. Shareholders who sold their shares prior to such time will not benefit from such increase in the fund's net asset value.

If a fund's portfolio invests significantly in a certain geographic region, any negative development affecting that region will have a greater impact on the fund than a fund that is not as heavily invested in that region. For example, with respect to funds that invest significantly in China:

• Investing in China involves certain heightened risks and considerations, including, among others: frequent trading suspensions and government interventions (including by nationalizing assets); currency exchange rate fluctuations or blockages; limits on using brokers and on foreign ownership; different financial reporting standards, as described above; higher dependence on exports and international trade; political and social instability; infectious disease outbreaks; regional and global conflicts; increased trade tariffs, embargoes, and other trade limitations; custody and other risks associated with programs used to access Chinese securities; and uncertainties in tax rules that could result in unexpected tax liabilities for the Fund. Significant portions of the Chinese securities markets may become rapidly illiquid, as Chinese issuers have the ability to suspend the trading of their equity securities. Moreover, actions by the U.S. government, such as delisting of certain Chinese companies from U.S. securities exchanges or otherwise restricting their operations in the U.S., may negatively impact the value of such securities held by the funds.

**Frequent Trading**

Funds that frequently trade their portfolios often have higher transaction costs (which are paid by the Fund), may result in higher taxes when Fund shares are held in a taxable account, and may lower the Fund's performance. Active trading can result in a lower capital gain distribution due to higher transaction costs added to the basis of the assets or can result in lower ordinary income distributions to shareholders when the transaction costs cannot be added to the basis of assets. Both events reduce Fund performance.

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**Fund of Funds**

The performance and risks of a fund of funds directly correspond to the performance and risks of the underlying funds in which the fund invests.

As of October 31, 2025, the Principal LifeTime Funds, Principal LifeTime Hybrid Funds, and SAM Portfolios assets were allocated among the underlying funds as identified in the tables below.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Fund** | **Principal LifeTime Strategic Income Fund** | **Principal LifeTime 2015 Fund** | **Principal LifeTime 2020 Fund** | **Principal LifeTime 2025 Fund** | **Principal LifeTime 2030 Fund** | **Principal LifeTime 2035 Fund** |
| Blue Chip Fund | 3.5% | 3.5% | 4.1% | 4.7% | 5.6% | 6.5% |
| Core Fixed Income Fund | 34.8% | 34.7% | 32.9% | 31.6% | 28.6% | 29.3% |
| Diversified Real Asset Fund | 0.4% | 0.4% | 0.4% | 0.4% | 0.5% | 0.0% |
| Equity Income Fund | 3.6% | 3.6% | 4.2% | 4.9% | 5.9% | 6.7% |
| Global Emerging Markets Fund | 1.9% | 1.9% | 2.2% | 2.6% | 3.0% | 3.5% |
| High Yield Fund | 6.4% | 6.4% | 5.9% | 5.2% | 4.6% | 4.3% |
| Inflation Protection Fund | 5.7% | 5.7% | 5.2% | 4.6% | 3.8% | 0.0% |
| International Equity Fund | 8.9% | 8.9% | 10.4% | 12.1% | 14.4% | 16.6% |
| International Small Company Fund | 0.4% | 0.4% | 0.5% | 0.6% | 0.7% | 0.8% |
| LargeCap Growth Fund I | 3.7% | 3.7% | 4.3% | 5.1% | 6.0% | 7.0% |
| LargeCap S&P 500 Index Fund | 5.8% | 5.9% | 6.8% | 8.0% | 9.5% | 11.0% |
| LargeCap Value Fund III | 3.2% | 3.2% | 3.8% | 4.4% | 5.2% | 6.1% |
| MidCap Fund | 0.8% | 0.8% | 0.9% | 1.1% | 1.3% | 1.5% |
| Real Estate Securities Fund | 1.6% | 1.6% | 1.6% | 1.6% | 1.6% | 2.0% |
| Short-Term Income Fund | 16.7% | 16.7% | 13.8% | 9.7% | 5.2% | 0.0% |
| SmallCap Fund | 1.5% | 1.5% | 1.8% | 2.0% | 2.4% | 2.8% |
| SmallCap S&P 600 Index Fund | 0.2% | 0.2% | 0.2% | 0.2% | 0.3% | 0.3% |
| Small-MidCap Dividend Income Fund | 0.9% | 0.9% | 1.0% | 1.2% | 1.4% | 1.6% |
| **Total** | **100.0%** | **100.0%** | **100.0%** | **100.0%** | **100.0%** | **100.0%** |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Fund** | **Principal LifeTime 2040 Fund** | **Principal LifeTime 2045 Fund** | **Principal LifeTime 2050 Fund** | **Principal LifeTime 2055 Fund** | **Principal LifeTime 2060 Fund** | **Principal LifeTime 2065 Fund** | **Principal LifeTime 2070 Fund** |
| Blue Chip Fund | 7.6% | 8.6% | 9.4% | 9.6% | 9.6% | 9.6% | 9.7% |
| Core Fixed Income Fund | 19.1% | 10.7% | 4.1% | 2.3% | 2.3% | 2.3% | 2.3% |
| Equity Income Fund | 7.9% | 8.9% | 9.7% | 9.9% | 9.9% | 9.9% | 9.9% |
| Global Emerging Markets Fund | 4.1% | 4.6% | 5.0% | 5.2% | 5.2% | 5.1% | 5.1% |
| High Yield Fund | 3.2% | 2.3% | 1.2% | 0.7% | 0.7% | 0.7% | 0.8% |
| Inflation Protection Fund | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| International Equity Fund | 19.7% | 22.1% | 24.1% | 24.3% | 24.4% | 24.4% | 24.4% |
| International Small Company Fund | 1.0% | 1.1% | 1.2% | 1.3% | 1.3% | 1.3% | 1.3% |
| LargeCap Growth Fund I | 8.2% | 9.2% | 10.0% | 10.3% | 10.3% | 10.3% | 10.3% |
| LargeCap S&P 500 Index Fund | 12.9% | 14.5% | 15.8% | 16.3% | 16.2% | 16.2% | 16.0% |
| LargeCap Value Fund III | 7.1% | 8.0% | 8.7% | 9.0% | 9.0% | 9.0% | 9.0% |
| MidCap Fund | 1.7% | 1.9% | 2.1% | 2.2% | 2.2% | 2.2% | 2.2% |
| Real Estate Securities Fund | 1.9% | 1.9% | 1.9% | 1.9% | 1.9% | 2.0% | 2.0% |
| SmallCap Fund | 3.3% | 3.7% | 4.1% | 4.2% | 4.2% | 4.2% | 4.2% |
| SmallCap S&P 600 Index Fund | 0.4% | 0.4% | 0.4% | 0.4% | 0.4% | 0.4% | 0.4% |
| Small-MidCap Dividend Income Fund | 1.9% | 2.1% | 2.3% | 2.4% | 2.4% | 2.4% | 2.4% |
| **Total** | **100.0%** | **100.0%** | **100.0%** | **100.0%** | **100.0%** | **100.0%** | **100.0%** |

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Fund** | **Principal LifeTime Hybrid Income Fund** | **Principal LifeTime Hybrid 2015 Fund** | **Principal LifeTime Hybrid 2020 Fund** | **Principal LifeTime Hybrid 2025 Fund** | **Principal LifeTime Hybrid 2030 Fund** | **Principal LifeTime Hybrid 2035 Fund** |
| Bond Market Index Fund | 34.7% | 34.8% | 32.9% | 31.6% | 28.5% | 29.3% |
| Diversified Real Asset Fund | 0.4% | 0.4% | 0.4% | 0.4% | 0.5% | 0.0% |
| Global Emerging Markets Fund | 1.9% | 1.8% | 2.2% | 2.5% | 3.0% | 3.5% |
| High Yield Fund | 6.4% | 6.4% | 5.9% | 5.2% | 4.6% | 4.3% |
| Inflation Protection Fund | 5.7% | 5.7% | 5.2% | 4.6% | 3.8% | 0.0% |
| International Equity | 8.8% | 8.8% | 10.3% | 12.0% | 14.3% | 16.5% |
| International Small Company Fund | 0.5% | 0.5% | 0.5% | 0.6% | 0.7% | 0.9% |
| LargeCap S&P 500 Index Fund | 20.0% | 19.9% | 23.4% | 27.3% | 32.4% | 37.3% |
| MidCap S&P 400 Index Fund | 1.7% | 1.7% | 1.9% | 2.3% | 2.7% | 3.1% |
| Real Estate Securities Fund | 1.6% | 1.7% | 1.6% | 1.6% | 1.7% | 2.0% |
| Short-Term Income Fund | 16.7% | 16.7% | 13.8% | 9.7% | 5.2% | 0.0% |
| SmallCap S&P 600 Index Fund | 1.6% | 1.6% | 1.9% | 2.2% | 2.6% | 3.1% |
| **Total** | **100.0%** | **100.0%** | **100.0%** | **100.0%** | **100.0%** | **100.0%** |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Underlying Fund** | **Principal LifeTime Hybrid 2040 Fund** | **Principal LifeTime Hybrid 2045 Fund** | **Principal LifeTime Hybrid 2050 Fund** | **Principal LifeTime Hybrid 2055 Fund** | **Principal LifeTime Hybrid 2060 Fund** | **Principal LifeTime Hybrid 2065 Fund** | **Principal LifeTime Hybrid 2070 Fund** |
| Bond Market Index Fund | 19.0% | 10.7% | 4.1% | 2.3% | 2.3% | 2.3% | 2.4% |
| Diversified Real Asset Fund | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| Global Emerging Markets Fund | 4.1% | 4.6% | 5.0% | 5.1% | 5.1% | 5.1% | 5.0% |
| High Yield Fund | 3.2% | 2.3% | 1.2% | 0.7% | 0.7% | 0.7% | 0.8% |
| Inflation Protection Fund | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% | 0.0% |
| International Equity | 19.4% | 21.9% | 23.8% | 24.4% | 24.3% | 24.3% | 24.1% |
| International Small Company Fund | 1.0% | 1.1% | 1.2% | 1.3% | 1.3% | 1.3% | 1.4% |
| LargeCap S&P 500 Index Fund | 44.0% | 49.4% | 53.9% | 55.2% | 55.2% | 55.2% | 54.9% |
| MidCap S&P 400 Index Fund | 3.7% | 4.1% | 4.5% | 4.6% | 4.6% | 4.6% | 4.7% |
| Real Estate Securities Fund | 2.0% | 1.9% | 1.9% | 1.9% | 2.0% | 2.0% | 2.1% |
| SmallCap S&P 600 Index Fund | 3.6% | 4.0% | 4.4% | 4.5% | 4.5% | 4.5% | 4.6% |
| **Total** | **100.0%** | **100.0%** | **100.0%** | **100.0%** | **100.0%** | **100.0%** | **100.0%** |

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Underlying Fund** | **SAM Balanced Portfolio** | **SAM Conservative Balanced Portfolio** | **SAM Conservative Growth Portfolio** | **SAM Flexible Income Portfolio** | **SAM Strategic Growth Portfolio** |
| Blue Chip Fund | 1.8% | 1.4% | 2.3% | 0.0% | 2.8% |
| Bond Market Index Fund | 5.9% | 10.3% | 3.5% | 12.4% | 0.0% |
| Core Fixed Income Fund | 12.3% | 22.4% | 5.9% | 29.6% | 0.0% |
| Diversified Real Asset Fund | 2.4% | 1.9% | 2.3% | 1.1% | 2.3% |
| Equity Income Fund | 7.2% | 5.7% | 8.4% | 3.5% | 9.0% |
| Finisterre Emerging Markets Total Return Bond Fund | 2.3% | 5.5% | 1.0% | 7.5% | 0.0% |
| Global Emerging Markets Fund | 4.4% | 2.9% | 5.7% | 0.8% | 6.9% |
| Global Listed Infrastructure Fund | 0.5% | 0.5% | 1.0% | 0.0% | 1.0% |
| Government & High Quality Bond Fund | 1.1% | 2.2% | 0.4% | 4.4% | 0.0% |
| High Yield Fund | 4.3% | 5.3% | 1.8% | 4.1% | 0.0% |
| Inflation Protection Fund | 2.5% | 4.1% | 1.4% | 6.0% | 1.4% |
| International Equity Index Fund | 3.3% | 2.2% | 4.0% | 1.3% | 4.8% |
| International Small Company Fund | 0.9% | 0.6% | 1.3% | 0.0% | 2.1% |
| LargeCap Growth Fund I | 1.5% | 0.8% | 3.1% | 0.4% | 4.5% |
| LargeCap S&P 500 Index Fund | 2.1% | 1.5% | 2.3% | 0.6% | 2.9% |
| LargeCap Value Fund III | 3.5% | 1.0% | 5.4% | 1.8% | 6.1% |
| MidCap Fund | 0.4% | 0.4% | 0.5% | 0.5% | 0.5% |
| Overseas Fund | 5.0% | 3.1% | 6.9% | 0.9% | 8.2% |
| Principal Active High Yield ETF | 0.0% | 0.0% | 0.0% | 1.8% | 0.0% |
| Principal Capital Appreciation Fund | 9.8% | 5.7% | 13.5% | 3.3% | 15.0% |
| Principal Government Money Market Fund | 0.6% | 0.7% | 0.0% | 0.5% | 0.6% |
| Principal International Equity ETF | 5.7% | 3.5% | 7.0% | 3.3% | 7.5% |
| Principal U.S. Mega-Cap ETF | 12.2% | 8.5% | 14.4% | 5.8% | 15.4% |
| Principal U.S. Small-Cap ETF | 3.5% | 2.0% | 4.6% | 1.3% | 5.5% |
| Principal Value ETF | 0.0% | 0.0% | 0.0% | 0.0% | 0.5% |
| Real Estate Securities Fund | 0.6% | 0.6% | 1.0% | 0.5% | 0.7% |
| Short-Term Income Fund | 2.7% | 3.6% | 0.0% | 4.6% | 0.0% |
| Small-MidCap Dividend Income Fund | 1.5% | 1.1% | 1.5% | 1.3% | 2.3% |
| Spectrum Preferred and Capital Securities Income Fund | 2.0% | 2.5% | 0.8% | 2.7% | 0.0% |
| **Total** | **100.0%** | **100.0%** | **100.0%** | **100.0%** | **100.0%** |

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A fund of funds indirectly bears its pro-rata share of the expenses of the underlying funds in which it invests, as well as directly incurring expenses. Therefore, investment in a fund of funds is more costly than investing directly in shares of the underlying funds. Generally, if an underlying fund offers multiple classes of shares for investment by funds of funds, the Funds will purchase shares of the class with the lowest expense ratio (expressed as a percent of average net assets on an annualized basis) at the time of purchase.

If you are considering investing in a Principal LifeTime Fund or Principal LifeTime Hybrid Fund, you should take into account your estimated retirement date and risk tolerance. In general, each Principal LifeTime Fund or Principal LifeTime Hybrid Fund is managed with the assumption that the investor will invest in a Principal LifeTime Fund or Principal LifeTime Hybrid Fund whose stated date is closest to the date the shareholder retires. Choosing a fund targeting an earlier date represents a more conservative choice; choosing a fund with a later date represents a more aggressive choice. It is important to note that the retirement year of the fund you select should not necessarily represent the specific year you intend to start drawing retirement assets. It should be a guide only. Generally, the potential for higher returns over time is accompanied by the higher risk of a decline in the value of your principal. Investors should realize that the Principal LifeTime Funds or Principal LifeTime Hybrid Funds are not a complete solution to their retirement needs. Investors must weigh many factors when considering when to retire, what their retirement needs will be, and what sources of income they may have.

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There are five Strategic Asset Management ("SAM") Portfolios: Flexible Income, Conservative Balanced, Balanced, Conservative Growth, and Strategic Growth. The SAM Portfolios offer long-term investors different asset allocation strategies having different levels of potential investment risk and reward. The SAM Portfolios share the same risks but often with different levels of exposure. In general, relative to the other Portfolios:

• &nbsp;&nbsp;&nbsp;&nbsp;the Balanced Portfolio should offer investors the potential for a medium level of income and a medium level of capital growth, while exposing them to a medium level of principal risk,

• &nbsp;&nbsp;&nbsp;&nbsp;the Conservative Balanced Portfolio should offer investors the potential for a medium-to-high level of income and a medium-to-low level of capital growth, while exposing them to a medium-to-low level of principal risk,

• &nbsp;&nbsp;&nbsp;&nbsp;the Conservative Growth Portfolio should offer investors the potential for a low-to-medium level of income and a medium-to-high level of capital growth, while exposing them to a medium-to-high level of principal risk,

• &nbsp;&nbsp;&nbsp;&nbsp;the Flexible Income Portfolio should offer investors the potential for a high level of income and a low level of capital growth, while exposing them to a low level of principal risk, and

• &nbsp;&nbsp;&nbsp;&nbsp;the Strategic Growth Portfolio should offer investors the potential for a high level of capital growth, and a corresponding level of principal risk.

Funds of funds can be subject to payment-in-kind liquidity risk: if an underlying fund pays a redemption request by the fund wholly or partly by a distribution-in-kind of portfolio securities rather than in cash, the fund may hold such portfolio securities until those managing the investments of the fund determine that it is appropriate to dispose of them.

Management of funds of funds entails potential conflicts of interest: a fund of fund may invest in affiliated underlying funds, and those who manage the fund's investments and their affiliates may earn different fees from different underlying funds and may have an incentive to allocate more fund of fund assets to underlying funds from which they receive higher fees.

**Geographic Concentration (Municipal Obligations)**

Greater risks may arise from the geographic concentration (a particular state, such as California, Illinois, or New York, or a particular country or region) of investments, as well as the current and past financial condition of municipal issuers in the case of a municipal fund. In addition to factors affecting the state or regional economy, certain constitutional amendments, legislative measures, executive orders, administrative regulations, court decisions, and voter initiatives could result in adverse consequences affecting municipal obligations. See the SAI for a more detailed description of these risks.

**Hedging**

Hedging is a strategy that can be used to attempt to mitigate or protect against potential losses due to changing interest rates, securities prices, asset values, currency exchange rates, and other market conditions. The success of a fund's hedging strategy will be subject to the ability of those managing the fund's investments to correctly assess the degree of correlation between the performance of the instruments used in the hedging strategy and the performance of the investments in the portfolio being hedged. Since the characteristics of many investments change as markets change or time passes, the success of a fund's hedging strategy will also be subject to the ability of those managing the fund's investments to continually recalculate, readjust, and execute hedges in an efficient and timely manner. For a variety of reasons, those managing the fund's investments may not seek to establish a perfect correlation between such hedging instruments and the portfolio holdings being hedged. Such imperfect correlation may prevent a fund from achieving the intended hedge or expose a fund to risk of loss. In addition, it is not possible to hedge fully or perfectly against any risk, and hedging entails its own costs.

**High Portfolio Turnover**

"Portfolio turnover" is the term used in the industry for measuring the amount of trading that occurs in a fund's portfolio during the year. For example, a 100% turnover rate means that, on average, every security in the portfolio has been replaced once during the year. Funds with high turnover rates (more than 100%) often have higher transaction costs (which are paid by the fund), may result in higher taxes when fund shares are held in a taxable account, and may lower the fund's performance. High portfolio turnover can result in a lower capital gain distribution due to higher transaction costs added to the basis of the assets or can result in lower ordinary income distributions to shareholders when the transaction costs cannot be added to the basis of assets. Both events reduce fund performance.

Please consider all the factors when you compare the turnover rates of different funds. You should also be aware that the "total return" line in the Financial Highlights section reflects portfolio turnover costs.

No turnover rate can be calculated for the Government Money Market or Money Market Funds because of the short maturities of the securities in which they invest.

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**High Yield Securities**

Below-investment-grade securities are fixed-income securities that are rated at the time of purchase Ba1 or lower by Moody's Investors Service, Inc. ("Moody's") and BB+ or lower by S&P Global Ratings ("S&P Global"). If the security has been rated by only one of the rating agencies, that rating will determine the security's rating; if the security is rated differently by the rating agencies, the highest rating will be used; and if the security has not been rated by either of the rating agencies, those selecting such investments will determine the security's quality.

Below-investment-grade securities are sometimes referred to as high yield or "junk bonds" and are considered speculative, particularly with respect to the issuer's continuing ability to meet principal and interest payments. Such securities could be in default at time of purchase.

Investing in high yield securities involves special risks in addition to those associated with investing in investment-grade securities:

• High yield securities may be less liquid than investment-grade securities.

• The secondary market on which high yield securities are traded may be less liquid, which may reduce the price of the security and adversely affect, and cause large fluctuations in, the daily price of the Fund's shares.

• Analysis of the creditworthiness of issuers of high yield securities is more complex. To the extent a Fund invests in high yield securities, its ability to meet its objective may be more dependent on such credit analyses.

• High yield securities may be more susceptible to real or perceived adverse economic and competitive industry conditions. Although high yield securities prices tend to be less sensitive to interest rate changes than those of investment-grade securities, they tend to be more sensitive to adverse economic downturns or individual corporate developments. Adverse publicity and investor perceptions, whether or not based on fundamental analysis, may decrease the value and liquidity of high yield securities, especially in a thinly traded market.

• If the issuer of high yield securities defaults, a Fund may incur additional expenses to seek recovery.

• If an issuer of high yield securities undergoes a corporate restructuring, such high yield securities may become exchanged for or converted into reorganized equity of the underlying issuer. Moreover, to the extent that a bond indenture or loan agreement does not contain sufficiently protective covenants or otherwise permits the issuer to take certain actions to the Fund's detriment (such as distributing cash to equity holders, incurring additional indebtedness, and disposing of assets), the underlying value of the high yield security may decline.

The use of credit ratings for evaluating high yield securities also involves certain risks. For example, credit ratings reflect the safety of principal and interest payments, not the market value risk of high yield securities. Also, credit rating agencies may fail to change credit ratings in a timely manner to reflect subsequent events. If a credit rating agency changes the rating of a portfolio security held by a Fund, the Fund may retain the security.

**Industrial Revenue Bond**

A fund will be sensitive to, and its performance will depend to a greater extent on, the overall condition and performance of industrial revenue bonds. These revenue bonds are issued by or on behalf of public authorities to obtain funds to finance various public and/or privately operated facilities, including those for business and manufacturing, housing, sports, pollution control, airport, mass transit, port, and parking facilities. These bonds are normally secured only by the revenues from the project and not by state or local government tax payments. Consequently, the credit quality of these bonds is dependent upon the ability of the user of the facilities financed by the bonds and any guarantor to meet its financial obligations. Payment of interest on and repayment of principal on such bonds are the responsibility of the user and/or any guarantor. These bonds are subject to a wide variety of risks, many of which relate to the nature of the specific project. Generally, the value and credit quality of these bonds are sensitive to the risks related to an economic slowdown.

**Industry Concentration**

A fund that concentrates its investments (invests more than 25% of its net assets) in a particular industry (or group of industries) is more exposed to the overall condition of the particular industry than a fund that invests in a wider variety of industries. A particular industry could be affected by economic, business, supply-and-demand, political, or regulatory factors. Companies within the same industry could react similarly to such factors. As a result, a fund's concentration in a particular industry would increase the possibility that the fund's performance will be affected by such factors.

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**Inverse Floating Rate Investments**

**Investment Company Securities**

Securities of other investment companies, including shares of closed-end investment companies, unit investment trusts, various ETFs, and other open-end investment companies, represent interests in professionally managed portfolios that may invest in a variety of instruments. Certain types of investment companies, such as closed-end investment companies, issue a fixed number of shares that trade on a stock exchange or over-the-counter at a premium or a discount to their net asset value. Others are continuously offered at net asset value but may also be traded in the secondary market. ETFs are often structured to perform in a similar fashion to a broad-based securities index. Investing in ETFs involves generally the same risks as investing directly in the underlying instruments. Investing in ETFs involves the risk that they will not perform in exactly the same fashion, or in response to the same factors, as the index or underlying instruments. Shares of ETFs may trade at prices other than net asset value.

A fund that invests in another investment company is subject to the risks associated with direct ownership of the securities in which such investment company invests. Fund shareholders indirectly bear their proportionate share of the expenses of each such investment company, including its advisory and administrative fees. The Fund would also continue to pay its own advisory fees and other expenses. Consequently, the Fund and its shareholders would, in effect, absorb two levels of fees with respect to investments in other investment companies.

A fund may invest in affiliated underlying funds, and those who manage such fund's investments and their affiliates may earn different fees from different underlying funds and may have an incentive to allocate more fund assets to underlying funds from which they receive higher fees.

**Leverage**

If a fund makes investments in futures contracts, forward contracts, swaps, and other derivative instruments, these instruments provide the economic effect of financial leverage by creating additional investment exposure, as well as the potential for greater loss. If a fund uses leverage through activities such as borrowing, entering into a short position, purchasing securities on margin or on a "when-issued" basis, or purchasing derivative instruments in an effort to increase its returns, the fund has the risk of magnified capital losses that occur when losses affect an asset base, enlarged by borrowings or the creation of liabilities, that exceeds the net assets of the fund. The net asset value of a fund employing leverage will be more volatile and sensitive to market movements. Leverage may involve the creation of a liability that requires the fund to pay interest. Leveraging may cause a fund to liquidate portfolio positions to satisfy its obligations when it may not be advantageous to do so. To the extent that a fund is not able to close out a leveraged position because of market illiquidity, a fund's liquidity may be impaired.

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**Municipal Obligations and AMT-Subject Bonds**

Municipal obligations are subject to the risk that litigation, legislation, or other political events, local business or economic conditions, credit rating downgrades, or the bankruptcy of the issuer could have a significant effect on an issuer's ability to make payments of principal and/or interest or otherwise affect the value of such obligations. Certain municipalities may have difficulty meeting their obligations due to, among other reasons, changes in underlying demographics. Municipal obligations can be significantly affected by political changes as well as uncertainties in the municipal market related to government regulation, taxation, legislative changes, or the rights of municipal security holders. Because many municipal obligations are issued to finance similar projects, especially those relating to education, health care, transportation, utilities, and water and sewer, conditions in those sectors can affect the overall municipal market. Municipal obligations include general obligation bonds, which are backed by the "full faith and credit" of the issuer, which has the power to tax residents to pay bondholders. Timely payments depend on the issuer's credit quality, ability to raise tax revenues, and ability to maintain an adequate tax base. General obligation bonds generally are not backed by revenues from a specific project or source. Municipal obligations also include revenue bonds, which are generally backed by revenue from a specific project or tax. The issuer of a revenue bond makes interest and principal payments from revenues generated from a particular source or facility, such as a tax on particular property or revenues generated from a municipal water or sewer utility or an airport. Revenue bonds generally are not backed by the full faith and credit and general taxing power of the issuer. The market for municipal obligations/bonds may be less liquid than for taxable bonds. There may be less information available on the financial condition of issuers of municipal obligations than for public corporations. Municipal obligations may be susceptible to periods of economic stress, which could affect the market values and marketability of many or all municipal obligations of issuers in a state, U.S. territory, or possession.

AMT-subject bonds are municipal obligations issued to finance certain "private activities," such as bonds used to finance airports, housing projects, student loan programs, and water and sewer projects. Interest on AMT-subject bonds is an item of tax preference for purposes of the federal individual alternative minimum tax ("AMT"). See "Tax Considerations" for a discussion of the tax consequences of investing in the Fund.

Current federal income tax laws limit the types and volume of bonds qualifying for the federal income tax exemption of interest, which may affect the ability of the Fund to purchase sufficient amounts of tax-exempt bonds.

**Portfolio Duration**

Average duration is a mathematical calculation of the average life of a bond (or for a bond fund, the average life of the fund's underlying bonds, weighted by the percentage of the fund's assets that each represents) that serves as a useful measure of its price risk. Duration is an estimate of how much the value of the bonds held by a fund will fluctuate in response to a change in interest rates. For example, if a fund has an average duration of 4 years and interest rates rise by 1%, the value of the bonds held by the fund will decline by approximately 4%, and if the interest rates decline by 1%, the value of the bonds held by the fund will increase by approximately 4%. Longer term bonds and zero coupon bonds are generally more sensitive to interest rate changes. Duration, which measures price sensitivity to interest rate changes, is not necessarily equal to average maturity.

**Preferred Securities**

Preferred securities include preferred stock and various types of junior subordinated debt and trust preferred securities. Preferred securities may pay fixed rate or adjustable-rate distributions and generally have a payment "preference" over common stock, but are junior to the issuer's senior debt in a liquidation of the issuer's assets. Preference would mean that a company must pay on its preferred securities before paying on its common stock, and that any claims of the preferred security holder would typically be ahead of common stockholders' claims on assets in a corporate liquidation.

Holders of preferred securities usually have no right to vote for corporate directors or on other matters. The market value of preferred securities is sensitive to changes in interest rates as they are typically fixed-income securities; the fixed-income payments are expected to be the primary source of long-term investment return. While some preferred securities are issued with a final maturity date, others are perpetual in nature. In certain instances, a final maturity date may be extended and/or the final payment of principal may be deferred at the issuer's option for a specified time without triggering an event of default for the issuer. In addition, an issuer of preferred securities may have the right to redeem the securities before their stated maturity date. For instance, for certain types of preferred securities, a redemption may be triggered by a change in federal income tax or securities laws. As with call provisions, a redemption by the issuer may reduce the return of the security held by the fund. Preferred securities may be subject to provisions that allow an issuer, under certain circumstances to skip (indefinitely) or defer (possibly up to 10 years) distributions. If a fund owns a preferred security that is deferring its distribution, the fund may be required to report income for tax purposes while it is not receiving any income.

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Preferred securities are typically issued by corporations, generally in the form of interest or dividend bearing instruments, or by an affiliated business trust of a corporation, generally in the form of beneficial interests in subordinated debentures or similarly structured securities. The preferred securities market is generally divided into the $25 par "retail" and the $1,000 par "institutional" segments. The $25 par segment includes securities that are listed on the New York Stock Exchange ("NYSE") (exchange traded), which trade and are quoted with accrued dividend or interest income, and which are often callable at par value five years after their original issuance date. The institutional segment includes $1,000 par value securities that are not exchange-listed (over the counter), which trade and are quoted on a "clean" price, i.e., without accrued dividend or interest income, and which often have a minimum of 10 years of call protection from the date of their original issuance. Preferred securities can also be issued by real estate investment trusts and involve risks similar to those associated with investing in real estate investment trust companies.

**Real Estate Investment Trusts ("REITs")**

REITs involve certain unique risks in addition to the risks associated with investing in the real estate industry in general (such as possible declines in the value of real estate, lack of availability of mortgage funds, or extended vacancies of property). REITs are characterized as: equity REITs, which primarily own property and generate revenue from rental income; mortgage REITs, which invest in real estate mortgages; and hybrid REITs, which combine the characteristics of both equity and mortgage REITs. Equity REITs may be affected by changes in the value of the underlying property owned by the REITs, while mortgage REITs may be affected by the quality of any credit extended. REITs are dependent upon management skills, are not diversified, and are subject to heavy cash flow dependency, risks of default by borrowers, and self-liquidation. A fund that invests in a REIT is subject to the REIT's expenses, including management fees, and will remain subject to the fund's advisory fees with respect to the assets so invested. REITs are also subject to the possibilities of failing to qualify for the special tax treatment accorded REITs under the Internal Revenue Code and failing to maintain their exemptions from registration under the 1940 Act.

Regular REIT dividends received by a Fund from a REIT will not qualify for the corporate dividends-received deduction and generally will not constitute qualified dividend income for U.S. income tax purposes. Any distribution of income attributable to regular REIT dividends from a Fund's investment in a REIT will not qualify for the deduction that would be available to a non-corporate shareholder were the shareholder to own such REIT directly.

Investment in REITs also involves risks similar to those associated with investing in small market capitalization companies. REITs may have limited financial resources, may trade less frequently and in a limited volume, and may be subject to more abrupt or erratic price movements than larger company securities.

**Real Estate Securities**

Investing in securities of companies in the real estate industry subjects a fund to the special risks associated with the real estate market and the real estate industry in general. Generally, companies in the real estate industry are considered to be those that have principal activity involving the development, ownership, construction, management, or sale of real estate; have significant real estate holdings, such as hospitality companies, healthcare facilities, supermarkets, mining, lumber, and/or paper companies; and/or provide products or services related to the real estate industry, such as financial institutions that make and/or service mortgage loans and manufacturers or distributors of building supplies. Securities of companies in the real estate industry are sensitive to factors such as loss to casualty or condemnation, changes in real estate values, property taxes, interest rates, cash flow of underlying real estate assets, occupancy rates, government regulations affecting zoning, land use and rents, and the management skill and creditworthiness of the issuer. Companies in the real estate industry may also be subject to liabilities under environmental and hazardous waste laws.

**Redemption and Large Transaction Risk**

Ownership of a fund's shares may be concentrated in one or a few large investors (such as funds of funds, institutional investors, and asset allocation programs) that may redeem or purchase shares in large quantities. These transactions may cause a fund to sell securities to meet redemptions or to invest additional cash at times it would not otherwise do so, which may result in increased transaction costs, increased expenses, changes to expense ratios, and adverse effects to fund performance. Such transactions may also accelerate the realization of taxable income if sales of portfolio securities result in gains. Moreover, reallocations by large shareholders among share classes of a fund may result in changes to the expense ratios of affected classes, which may increase the expenses paid by shareholders of the class that experienced the redemption.

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As an example, as of October 31, 2025, series of the Registrant, Principal Variable Contracts, Funds, Inc. ("PVC"), Principal Exchange-Traded Funds ("PETF"), and collective investment trusts sponsored by Principal Global Investors Trust Company, an affiliate of PGI, owned the following percentages, in the aggregate, of the outstanding shares of the underlying funds listed below. PGI is the advisor to the PFI, PVC, PETF and other asset allocation programs funds of funds and is committed to minimizing the potential impact of redemption and large transaction risk on underlying funds to the extent consistent with pursuing the investment objectives of the funds of funds that it manages. However, PGI and its affiliates may face conflicts of interest in fulfilling responsibilities to all such funds.

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| | |
|:---|:---|
| **Fund** | **Total Percentage<br>of Outstanding<br>Shares Owned** |
| Core Fixed Income | 65.90% |
| Equity Income | 33.78% |
| Finisterre Emerging Markets Total Return Bond | 55.50% |
| Global Emerging Markets | 89.87% |
| Government & High Quality Bond | 33.27% |
| Government Money Market | 66.58% |
| High Yield | 61.57% |
| Inflation Protection | 88.29% |
| International Equity | 89.00% |
| LargeCap Growth I | 26.05% |
| LargeCap S&P 500 Index | 57.61% |
| LargeCap Value III | 81.36% |
| MidCap | 1.47% |
| MidCap S&P 400 Index | 38.28% |
| Overseas | 52.27% |
| Principal Capital Appreciation | 31.95% |
| Real Estate Securities | 11.35% |
| Short-Term Income | 45.01% |
| SmallCap | 32.75% |
| SmallCap S&P 600 Index | 43.72% |

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**Repurchase Agreements** 

Repurchase agreements typically involve the purchase of debt securities from a financial institution such as a bank, savings and loan association, or broker-dealer. A repurchase agreement provides that the fund sells back to the seller and that the seller repurchases the underlying securities at a specified price on a specific date. Repurchase agreements may be viewed as loans by the fund collateralized by the underlying securities. This arrangement results in a fixed rate of return that is not subject to market fluctuation while the fund holds the security. In the event of a default or bankruptcy by a selling financial institution, the affected fund bears a risk of loss, including incurring costs and delays. Repurchase agreements may involve more risk than investments in U.S. government securities. To minimize such risks, the fund enters into repurchase agreements only with parties those managing the investments of the fund deem creditworthy (those that are large, well-capitalized and well-established financial institutions). In addition, the value of the securities collateralizing the repurchase agreement is, and during the entire term of the repurchase agreement remains, at least equal to the acquisition price the Fund pays to the seller of the securities.

**Securitized Products**

Securitized products are fixed-income instruments that represent interests in underlying pools of collateral or assets. The value of the securitized product is derived from the performance, value, and cash flows of the underlying asset(s).

A fund's investments in securitized products are subject to risks similar to traditional fixed-income securities, such as credit, interest rate, liquidity, prepayment, extension, and default risk, as well as additional risks associated with the nature of the assets and the servicing of those assets. Prepayment risk may make it difficult to calculate the average life of a fund's investment in securitized products. Securitized products are generally issued as pass-through certificates, which represent the right to receive principal and interest payments collected on the underlying pool of assets, which are passed through to the security holder. Therefore, repayment depends on the cash flows generated by the underlying pool of assets. The securities may be rated as investment grade or below investment grade.

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The specific securitized products that are principal strategies of each Fund are listed in its Fund Summary.

• Mortgage-backed securities ("MBS") represent an interest in a pool of underlying mortgage loans secured by real property. MBS are sensitive to changes in interest rates but may respond to these changes differently from other fixed-income securities due to the possibility of prepayment of the underlying mortgage loans. If interest rates fall and the underlying loans are prepaid faster than expected, the fund may have to reinvest the prepaid principal in lower yielding securities, thus reducing the fund's income. Conversely, rising interest rates tend to discourage refinancings and the underlying loans may be prepaid more slowly than expected, reducing a fund's potential to reinvest the principal in higher yielding securities and extending the duration of the underlying loans. In addition, when market conditions result in an increase in default rates on the underlying loans and the foreclosure values of the underlying real estate is less than the outstanding amount due on the underlying loan, collection of the full amount of accrued interest and principal on these investments may be doubtful. The risk of such defaults is generally higher in the case of underlying mortgage pools that include sub-prime mortgages (mortgages granted to borrowers whose credit histories would not support conventional mortgages).

• Commercial mortgage-backed securities ("CMBS") represent an interest in a pool of underlying commercial mortgage loans secured by real property such as retail, office, hotel, multi-family, and industrial properties. CMBS are issued in several classes with different levels of yield and credit protection, and the CMBS class in which a fund invests influences the interest rate, credit, and prepayment risks. Many of the loans related to CMBS do not allow voluntary prepayment, which can help mitigate or eliminate prepayment risk.

• Asset-backed securities ("ABS") are backed by non-mortgage assets such as company receivables, company loans, truck and auto loans, student loans, leases, and credit card receivables. ABS entail credit risk. They also may present a risk that, in the event of default, the liquidation value of the underlying assets may be inadequate to pay any unpaid interest or principal.

**Sovereign Debt**

Sovereign debt instruments are subject to the risk that a governmental entity may delay or refuse to pay interest or repay principal on its sovereign debt, due, for example, to cash flow problems, insufficient foreign currency reserves, political considerations, the relative size of the governmental entity's debt position in relation to the economy, or the failure to put in place economic reforms required by the International Monetary Fund or other multilateral agencies. If a governmental entity defaults, it may ask for more time in which to pay or for further loans. There is no legal process for collecting sovereign debt that a government does not pay nor are there bankruptcy proceedings through which all or part of the sovereign debt that a governmental entity has not repaid may be collected.

**U.S. Government and U.S. Government-Sponsored Securities**

U.S. government securities, such as Treasury bills, notes, and bonds and mortgage-backed securities guaranteed by the Government National Mortgage Association (Ginnie Mae), are supported by the full faith and credit of the United States; others are supported by the right of the issuer to borrow from the U.S. Treasury; others are supported by the discretionary authority of the U.S. government to purchase the agency's obligations; and still others are supported only by the credit of the issuing agency, instrumentality, or enterprise.

Although U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae) may be chartered or sponsored by Congress, they are not funded by Congressional appropriations, and their securities are not issued by the U.S. Treasury nor supported by the full faith and credit of the U.S. government.

There is no assurance that the U.S. government would provide financial support to its agencies and instrumentalities if not required to do so. In addition, certain governmental entities have been subject to regulatory scrutiny regarding their accounting policies and practices and other concerns that may result in legislation, changes in regulatory oversight, and/or other consequences that could adversely affect the credit quality, availability, or investment character of securities issued by these entities. The value and liquidity of U.S. government securities may be affected adversely by changes in the ratings of those securities.

**Volatility Mitigation**

Volatility mitigation strategies may increase fund transaction costs, which could increase losses or reduce gains. These strategies may not protect the fund from market declines and may reduce the fund's participation in market gains.

**PORTFOLIO HOLDINGS INFORMATION**

A description of the Registrant's policies and procedures with respect to disclosure of the Funds' portfolio securities is available in the Funds' SAI.

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**MANAGEMENT OF THE FUNDS**

**The Manager and Advisor**

Principal Global Investors, LLC ("PGI"), an indirect subsidiary of Principal Financial Group, Inc.<sup>®</sup> ("Principal<sup>®</sup>"), serves as the manager and advisor for the Funds. Through the Management Agreement with the Registrant, PGI provides investment advisory services and certain corporate administrative services for the Funds.

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| | |
|:---|:---|
| **Advisor:** | **Principal Global Investors, LLC** (doing business as Principal Asset Management<sup>SM</sup>), 711 High Street, Des Moines, IA 50392, is part of a diversified global asset management organization that utilizes specialized investment teams and affiliates to provide institutional investors and individuals with diverse investment capabilities, including fixed income, equities, real estate, and asset allocation. In addition to its asset management offices in the U.S., PGI has asset management offices of affiliate advisors located in Europe, Asia, Latin America, and Australia. PGI has been a registered investment advisor since 1998. |
| **Funds:** | In fulfilling its investment advisory responsibilities, PGI provides day-to-day discretionary investment services (directly making decisions to purchase or sell securities) for all or a portion of the following Funds: |

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| |
|:---|
| • California Municipal |
| • Core Fixed Income |
| • Core Plus Bond |
| • Diversified Income (services provided by Principal Asset Allocation, an investment team within PGI; and, for emerging market debt, services provided by Principal Finisterre, an investment team within PGI) |
| • Diversified International |
| • Equity Income (services provided by Principal Edge, an investment team within PGI) |
| • Finisterre Emerging Markets Total Return Bond (services provided by Principal Finisterre, an investment team within PGI) |
| • Global Emerging Markets |
| • Government & High Quality Bond |
| • Government Money Market |
| • High Yield |
| • Inflation Protection |
| • International Bond |
| • International Equity |
| • LargeCap Growth I (services provided by Principal Asset Allocation, an investment team within PGI) |
| • LargeCap S&P 500 Index |
| • LargeCap Value III (services provided by Principal Asset Allocation, an investment team within PGI) |
| • MidCap (services provided by Principal Aligned, an investment team within PGI) |
| • MidCap S&P 400 Index |
| • MidCap Value I (services provided by Principal Asset Allocation, an investment team within PGI) |
| • Money Market |
| • Overseas (services provided by Principal Asset Allocation, an investment team within PGI) |
| • Principal Capital Appreciation (services provided by Principal Edge, an investment team within PGI) |
| • Principal LifeTime Funds (services provided by Principal Asset Allocation, an investment team within PGI) |
| • Principal LifeTime Hybrid Funds (services provided by Principal Asset Allocation, an investment team within PGI) |
| • SAM (Strategic Asset Management) Portfolios (services provided by Principal Asset Allocation, an investment team within PGI) |
| • Short-Term Income |
| • SmallCap |
| • SmallCap Growth I (services provided by Principal Asset Allocation, an investment team within PGI) |
| • SmallCap S&P 600 Index |
| • SmallCap Value II (services provided by Principal Asset Allocation, an investment team within PGI) |
| • Tax-Exempt Bond |

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Several of the Funds have multiple sub-advisors. A team within Principal Asset Allocation, an investment team within PGI and whose members are identified in each Fund Summary and listed below, determines the portion of those Funds' assets that PGI and each sub-advisor will manage and may reallocate Fund assets among PGI and the sub-advisors from time-to-time. This team agrees on allocation decisions and shares authority and responsibility for day-to-day portfolio management, with no limitation on the authority of one portfolio manager in relation to another.

The decision to reallocate Fund assets between PGI acting in a discretionary advisory capacity and the sub-advisors may be based on a variety of factors, including, but not limited to: the investment capacity of PGI and each sub-advisor, portfolio diversification, volume of net cash flows, fund liquidity, investment performance, investment strategies, changes in PGI or each sub-advisor's firm or investment professionals, or changes in the number of sub-advisors. Ordinarily, reallocations of Fund assets among sub-advisors occur as a sub-advisor liquidates assets in the normal course of portfolio management or with net new cash flows; however, at times, existing Fund assets may be reallocated among PGI and/or the sub-advisors.

The Fund Summaries identified the portfolio managers and the Funds they manage. Additional information about the portfolio managers follows. With respect to the biographies of PGI portfolio managers, references to Principal<sup>®</sup> encompass various entities and groups within the Principal organization, such as its majority- and wholly-owned subsidiaries, as well as investment teams within PGI.

As reflected in the Fund Summaries, the day-to-day portfolio management, for some Funds, is shared by multiple portfolio managers. In each such case, the portfolio managers operate as a team, sharing authority and responsibility for research and the day-to-day management of the portfolio. However, for the MidCap Fund, Mr. Nolin has ultimate decision making authority. Mr. Rozycki may make investment decisions in Mr. Nolin's absence.

**Paul H. Blankenhagen** has been with Principal<sup>®</sup> since 1992. He earned a bachelor's degree in Finance from Iowa State University and a master's degree from Drake University. Mr. Blankenhagen has earned the right to use the Chartered Financial Analyst designation.

**Damien Buchet** has been with Principal<sup>®</sup> since 2015. He earned his degree from the EDHEC School of Business Administration. Mr. Buchet has earned the right to use the Chartered Financial Analyst designation.

**Jessica S. Bush** has been with Principal<sup>®</sup> since 2006. She earned a bachelor's degree in Business Administration from the University of Michigan. Ms. Bush has earned the right to use the Chartered Financial Analyst designation.

**Jeff Callahan** has been with Principal<sup>®</sup> since 2006. He earned a bachelor's degree in Business Administration with an emphasis in Finance from Wartburg College and an M.B.A. from the University of Iowa. Mr. Callahan has earned the right to use the Chartered Financial Analyst designation.

**Daniel R. Coleman** has been with Principal<sup>®</sup> since 2001. He earned a bachelor's degree in Finance from the University of Washington and an M.B.A. from New York University.

**Brody Dass** has been with Principal<sup>®</sup> since 2015. He earned a bachelor's degree from the University of Iowa. Mr. Dass has earned the right to use the Chartered Financial Analyst designation.

**Bryan C. Davis** has been with Principal<sup>®</sup> since 1993. He earned a bachelor's degree in Finance from the University of Iowa. Mr. Davis has earned the right to use the Chartered Financial Analyst designation.

**Mark P. Denkinger** has been with Principal<sup>®</sup> since 1990. He earned a bachelor's degree in Finance and an M.B.A. with a Finance emphasis from the University of Iowa. Mr. Denkinger has earned the right to use the Chartered Financial Analyst designation.

**James W. Fennessey** has been with Principal<sup>®</sup> since 2000. Mr. Fennessey earned a bachelor's degree in Business Administration, with an emphasis in Finance, and a minor in Economics from Truman State University. Mr. Fennessey has earned the right to use the Chartered Financial Analyst designation.

**Emily Foshag** has been with Principal<sup>®</sup> since 2019. She earned a bachelor's degree in Accounting from New York University and an M.S. degree from New York University with a concentration in global energy and environmental policy. Ms. Foshag has earned the right to use the Chartered Financial Analyst designation.

**John R. Friedl** has been with Principal<sup>®</sup> since 1998. He earned a bachelor's degree in Communications and History from the University of Washington and a master's degree in Finance from Seattle University. Mr. Friedl has earned the right to use the Chartered Financial Analyst designation.

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**Zach Gassmann** has been with Principal<sup>®</sup> since 2007. He received a bachelor's degree in Accounting from Simpson College and a master's degree in Financial Management from Drake University. Mr. Gassmann has earned the right to use the Chartered Financial Analyst designation.

**Michael Goosay** has been with Principal<sup>®</sup> since 2023. Prior to that, Mr. Goosay was the Head of Global Pensions and Multi-Sector Fixed Income Portfolio Management at Goldman Sachs Asset Management since 2009. He earned a bachelor's degree in Finance from Albright College and an M.B.A. from Rutgers University.

**Daniel Graña** has been with Principal<sup>®</sup> since 2025. Prior to that, Mr. Graña was the Lead Portfolio Manager on the Janus Henderson Emerging Market Equity Strategy since 2019. He earned a Masters of Management from the Kellogg School of Management at Northwestern University and a Bachelor of Science in Economics and Bachelor of Science in Political Science from the Massachusetts Institute of Technology. Mr. Graña has earned the right to use the Chartered Financial Analyst designation.

**Allison Hitchings** has been with Principal<sup>®</sup> since 2013. She earned a bachelor's degree in Marketing from Iowa State University.

**Todd A. Jablonski** has been with Principal<sup>®</sup> since 2010. He earned a bachelor's degree in Economics from the University of Virginia and an M.B.A. with an emphasis in Quantitative Finance from New York University's Stern School of Business. Mr. Jablonski has earned the right to use the Chartered Financial Analyst designation.

**Theodore Jayne** has been with Principal<sup>®</sup> since 2015. He earned a bachelor's degree in Anthropology from Harvard University. Mr. Jayne has earned the right to use the Chartered Financial Analyst designation.

**Chee Sin Koh** has been with Principal<sup>®</sup> since 2022. Prior to that, he worked at Conning/Global Evolution Fund Management as a portfolio manager managing global bonds and Asia fixed income products since 2017. He received a double degree in Business Management and Accountancy from Singapore Management University.

**John Paul Lech** has been with Principal<sup>®</sup> since 2025. Prior to that, Mr. Lech founded and served as Lead Portfolio Manager of the Diversified Emerging Markets strategy at Matthews Asia. He earned a Masters of Arts in Latin American Studies and a Bachelor of Science in Foreign Service from the Walsh School of Foreign Service at Georgetown University.

**George P. Maris** has been with Principal<sup>®</sup> since 2023. Prior to that, Mr. Maris was the Head of Equities, Americas region, and Lead Portfolio Manager of the Global Alpha Equity Team at Janus Henderson Investors since 2011. He earned a bachelor's degree in Economics from Swarthmore College, an M.B.A. from the University of Chicago, and a J.D. from the University of Illinois. Mr. Maris has earned the right to use the Chartered Financial Analyst designation.

**Michael Messina** has been with Principal<sup>®</sup> since 2022. Prior to that, Mr. Messina was a Lead Analyst for Franklin Templeton Multi-Asset Solutions since 2018. He earned a bachelor's degree in MIS from the University of Central Florida and an M.B.A. from Nova Southeastern University.

**James Noble** has been with Principal<sup>®</sup> since 2010. He earned a bachelor's degree in Finance and an M.B.A. from Hofstra University. Mr. Noble has earned the right to use the Chartered Financial Analyst designation.

**K. William Nolin** has been with Principal<sup>®</sup> since 1993. He earned a bachelor's degree in Finance from the University of Iowa and an M.B.A. from the Yale School of Management. Mr. Nolin has earned the right to use the Chartered Financial Analyst designation.

**Phil Nordhus** has been with Principal<sup>®</sup> since 1990. He earned a bachelor's degree in Economics from Kansas State University and an M.B.A. from Drake University. Mr. Nordhus has earned the right to use the Chartered Financial Analyst designation.

**Tyler O'Donnell** has been with Principal<sup>®</sup> since 2015. He earned bachelor's degrees in Mathematics and Biochemistry from the University of Iowa and an M.B.A. from Iowa State University. Mr. O'Donnell has earned the right to use the Chartered Financial Analyst designation.

**Tina Paris** has been with Principal<sup>®</sup> since 2001. She earned a bachelor's degree in Finance and Economics from the University of Northern Iowa and an M.B.A with a Finance emphasis from the University of Iowa. Ms. Paris has earned the right to use the Chartered Financial Analyst designation.

**Brian W. Pattinson** has been with Principal<sup>®</sup> since 1994. He earned a bachelor's degree and an M.B.A. in Finance from the University of Iowa. Mr. Pattinson has earned the right to use the Chartered Financial Analyst designation.

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**Matthew Peron** has been with Principal<sup>®</sup> since 2025. Prior to that, Mr. Peron was the Global Head of Solutions at Janus Henderson Investors since 2023 and Director of Research from 2020 to 2024. He earned a bachelor's degree in Electrical Engineering from Swarthmore College and an M.B.A. from the University of Chicago.

**Scott J. Peterson** has been with Principal<sup>®</sup> since 2002. He earned a bachelor's degree in Mathematics from Brigham Young University and an M.B.A. from New York University's Stern School of Business. Mr. Peterson has earned the right to use the Chartered Financial Analyst designation.

**Sarah E. Radecki** has been with Principal<sup>®</sup> since 1999. She earned bachelor's degrees in Political Science and Economics from Saint Mary's College of California and a master's degree in Economics from the University of California at Santa Barbara. Ms. Radecki has earned the right to use the Chartered Financial Analyst designation.

**Joshua Rank** has been with Principal<sup>®</sup> since 2013. He earned a bachelor's degree in Finance from Iowa State University. Mr. Rank has earned the right to use the Chartered Financial Analyst designation.

**Tracy Reeg** has been with Principal<sup>®</sup> since 1993. She earned a bachelor's degree in Finance from the University of Northern Iowa.

**Benjamin E. Rotenberg** has been with Principal<sup>®</sup> since 2014. He earned a bachelor's degree in International Relations and Russian from Pomona College. Mr. Rotenberg has earned the right to use the Chartered Financial Analyst and the Chartered Alternative Investment Analyst designations.

**Tom Rozycki** has been with Principal<sup>®</sup> since 2001. He earned a bachelor's degree in Finance from Drake University. Mr. Rozycki has earned the right to use the Chartered Financial Analyst designation.

**Chad Severin** has been with Principal® since 2003. He earned a bachelor's degree in Accounting from Simpson College.

**Aaron J. Siebel** has been with Principal<sup>®</sup> since 2005. He earned a bachelor's degree in Finance from the University of Iowa. Mr. Siebel has earned the right to use the Chartered Financial Analyst designation.

**Darrin E. Smith** has been with Principal<sup>®</sup> since 2007. He earned a bachelor's degree in Economics from Iowa State University and an M.B.A. from Drake University. Mr. Smith has earned the right to use the Chartered Financial Analyst designation.

**Scott Smith** has been with Principal<sup>®</sup> since 1999. He earned a bachelor's degree in Finance from Iowa State University.

**Yesim Tokat-Acikel** has been with Principal<sup>®</sup> since 2023. Prior to that, Ms. Tokat-Acikel was a Managing Director, Head of Multi-Asset Research, Co-Head of ESG, and Portfolio Manager for PGIM Quantitative Solutions, a business of Prudential Financial, since 2010. She earned a bachelor's degree in Industrial Engineering from Bilkent University, a master's degree in Industrial Engineering from the University of Arizona, and a PhD in Financial Economics from the University of California, Santa Barbara.

**May Tong** has been with Principal<sup>®</sup> since 2021. Prior to that, Ms. Tong was a Senior Vice President, Portfolio Manager for Franklin Templeton Multi-Asset Solutions since 2018. She earned a bachelor's degree in Accounting and Finance from Boston College and an M.B.A. from Columbia University. Ms. Tong has earned the right to use the Chartered Financial Analyst designation.

**Nedret Vidinli** has been with Principal<sup>®</sup> since 2010. He earned a bachelor's degree in Business Administration at Drake University and an M.B.A. at Benedictine University. Mr. Vidinli has earned the right to use the Chartered Financial Analyst designation.

**Christopher Watson** has been with Principal<sup>®</sup> since 2011. He earned a B.A. Hons from McGill University, Montreal and an M.B.A. from IMD Lausanne. Mr. Watson has earned the right to use the Chartered Financial Analyst designation.

**James Welch** has been with Principal<sup>®</sup> since 2014. He earned a bachelor's degree in Economics from the Pennsylvania State University.

**The Sub-Advisors**

PGI has signed contracts with various sub-advisors. Under the sub-advisory agreements, the sub-advisor agrees to assume the obligations of PGI to provide investment advisory services to the portion of the assets of a specific Fund allocated to it by PGI. For these services, PGI pays the sub-advisor a fee.

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PGI or the sub-advisor provides the Board with a recommended investment program. The program must be consistent with the Fund's investment objective and policies. Within the scope of the approved investment program, the sub-advisor advises the Fund on its investment policy and determines which securities are bought or sold, and in what amounts.

The Fund Summaries identified the sub-advisors, portfolio managers, and the Funds they manage. Additional information follows.

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| | |
|:---|:---|
| **Sub-Advisor:** | **AllianceBernstein L.P. ("AllianceBernstein")**, 501 Commerce Street, Nashville, TN 37203, was founded in 1971 as an independent investment advisor registered with the SEC. |
| **Fund(s):** | a portion of SmallCap Growth I |

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| | |
|:---|:---|
| **Sub-Advisor:** | **Barrow, Hanley, Mewhinney & Strauss, LLC** (doing business as Barrow Hanley Global Investors) **("Barrow Hanley")**, 2200 Ross Avenue, 31st Floor, Dallas, Texas 75201, is an investment advisory firm that was founded in 1979. |
| **Fund(s):** | a portion of LargeCap Value III and a portion of Overseas |

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| | |
|:---|:---|
| **Sub-Advisor:** | **BlackRock Financial Management, Inc. ("BlackRock")**, 50 Hudson Yards, New York, NY 10001, is a registered investment advisor organized in 1994. BlackRock and its affiliates manage investment company and other portfolio assets. |
| | **Sub-Sub-Advisor: BlackRock International Limited ("BIL")**, Exchange Place One, 1 Semple Street, Edinburgh EH3 8BL, Scotland, is a registered investment advisor founded in 1995. |
| **Fund(s):** | a portion of Diversified Income (global investment grade credit sleeve) |
|  | BlackRock and BIL, with PGI's consent, have entered into a sub-sub-advisory agreement for a portion of the Diversified Income Fund. Under the agreement, BIL has agreed to carry out certain investment advisory obligations of BlackRock to manage a portion of the Diversified Income Fund's assets. BlackRock will allocate to BIL a portion of the Diversified Income Fund assets it manages. |

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| | |
|:---|:---|
| **Sub-Advisor:** | **Brown Advisory, LLC ("Brown")**, 901 South Bond Street, Suite 400, Baltimore, Maryland 21231, is a registered investment advisor that works with institutions, corporations, nonprofits, families, and individuals. |
| **Fund(s):** | a portion of LargeCap Growth I and a portion of SmallCap Growth I |

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| | |
|:---|:---|
| **Sub-Advisor:** | **Causeway Capital Management LLC ("Causeway")**, 11111 Santa Monica Boulevard, 15th Floor, Los Angeles, CA 90025, is a registered investment advisor founded in 2001. |
| **Fund(s):** | a portion of Overseas |

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| | |
|:---|:---|
| **Sub-Advisor:** | **Emerald Advisers, LLC ("Emerald")**, 3175 Oregon Pike, Leola, PA 17540, was founded in 1991 and manages institutional separate account and mutual fund investment portfolios for corporations, public and private pension funds, and for individual retail investors. |
| **Fund(s):** | a portion of SmallCap Growth I |

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| | |
|:---|:---|
| **Sub-Advisor:** | **Grantham, Mayo, Van Otterloo & Co. LLC ("GMO"),** 53 State Street, Boston, MA 02109, is a registered investment advisor organized in 1977. GMO manages a broad range of investment strategies, including equity and fixed income strategies across global developed and emerging markets, multi-asset class strategies, and alternative strategies. |
| **Fund(s):** | a portion of Diversified Income (opportunistic securitized investment sleeve) |

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| | |
|:---|:---|
| **Sub-Advisor:** | **Hotchkis and Wiley Capital Management, LLC**, 601 S. Figueroa Street, 39th Floor, Los Angeles, CA 90017, is an investment advisory firm founded in 1980 that manages value portfolios for institutional and individual investors. |
| **Fund(s):** | a portion of SmallCap Value II |

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| | |
|:---|:---|
| **Sub-Advisor:** | **Los Angeles Capital Management LLC ("Los Angeles Capital")**, 11150 Santa Monica Boulevard, Suite 200, Los Angeles, CA 90025, founded in 2002, is a registered investment advisor offering risk-controlled, active equity management services to a broad range of institutional investors. |
| **Fund(s):** | a portion of MidCap Value I |

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| | |
|:---|:---|
| **Sub-Advisor:** | **Nuveen Asset Management, LLC ("Nuveen Asset Management")**, 333 West Wacker Drive, Chicago, IL 60606, is an investment advisor registered with the SEC providing investment management services in a variety of investment strategies across multiple asset classes. |
| **Fund(s):** | a portion of Diversified Income (senior loan investment strategy) |

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| | |
|:---|:---|
| **Sub-Advisor:** | **PineBridge Investments LLC ("PineBridge")**, Park Avenue Tower, 65 East 55<sup>th</sup> Street, New York, NY 10022, founded in 2010, is an investment advisor registered with the SEC that focuses on active, high conviction investing.  |
| **Fund(s):** | a portion of Diversified Income (U.S. investment grade corporate bond sleeve) |

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| | |
|:---|:---|
| **Sub-Advisor:** | **Polen Capital Credit, LLC** (f/k/a DDJ Capital Management, LLC) **("Polen Credit")**, 1075 Main Street, Suite 320, Waltham, MA 02451, is an SEC registered investment advisor. Polen Credit, which is a wholly-owned subsidiary of Polen Capital Management, LLC, was formed in 1996 and presently manages U.S. opportunistic high yield, U.S. high yield, bank loan, and credit opportunities investment strategies, along with various customized fixed income solutions, on behalf of domestic and international investors.  |
| **Fund(s):** | a portion of Diversified Income (high yield strategy) |

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| | |
|:---|:---|
| **Sub-Advisor:** | **Post Advisory Group, LLC ("Post")**, 2049 Century Park East, Suite 3050, Los Angeles, CA 90067, founded in 1992, is a global investment manager specializing in high yield securities with a multi-strategy, value-oriented investment approach. |
| **Fund(s):** | a portion of Diversified Income (high yield strategy) |

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| | |
|:---|:---|
| **Sub-Advisor:** | **Principal Real Estate Investors, LLC** (doing business as Principal Real Estate) **("Principal-REI")**, 711 High Street, Des Moines, IA 50392, was founded in 2000 and manages commercial real estate across the spectrum of public and private equity and debt investments, primarily for institutional investors. |
| **Fund(s):** | Global Real Estate Securities and Real Estate Securities |

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The portfolio managers operate as a team, sharing authority and responsibility for research and the day-to-day management of the portfolio with no limitation on the authority of one portfolio manager in relation to another.

**Keith Bokota** has been with Principal-REI since 2007. He earned a bachelor's degree in Finance and International Business from Georgetown University. Mr. Bokota has earned the right to use the Chartered Financial Analyst designation.

**Simon Hedger** has been with Principal - REI since 2003. He earned an M.B.A. from the University of New England and is an associate member of both the Royal Institute of Chartered Surveyors and of the Australian Property Institute. He is a U.K. qualified chartered surveyor (ARICS).

**Anthony Kenkel** has been with Principal-REI since 2005. He earned a bachelor's degree in Finance from Drake University and an M.B.A. from the University of Chicago Graduate School of Business. Mr. Kenkel has earned the right to use the Chartered Financial Analyst and Financial Risk Manager designations.

**Kelly D. Rush** has been with Principal-REI since 2000 and the predecessor firms since 1987. He earned a B.A. in Finance and an M.B.A. in Business Administration from the University of Iowa. Mr. Rush has earned the right to use the Chartered Financial Analyst designation.

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| | |
|:---|:---|
| **Sub-Advisor:** | **Spectrum Asset Management, Inc. ("Spectrum")**, 2 High Ridge Park, Stamford, CT 06905, founded in 1987, manages portfolios of preferred securities for corporate, pension fund, insurance, and endowment clients; open-end and closed-end mutual funds; and separately managed account programs for high net worth individual investors, as well as provides volatility mitigation solutions for some client portfolios. |
| **Fund(s):** | a portion of Diversified Income (preferred securities strategy) |

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| | |
|:---|:---|
| **Sub-Advisor:** | **T. Rowe Price Associates, Inc. ("T. Rowe Price")**, 1307 Point Street, Baltimore, MD 21231, has over 75 years of investment management experience. |
| **Fund(s):** | a portion of LargeCap Growth I |

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| | |
|:---|:---|
| **Sub-Advisor:** | **Vaughan Nelson Investment Management, L.P. ("Vaughan Nelson")**, 600 Travis Street, Suite 3800, Houston, Texas 77002, was founded in 1970. |
| **Fund(s):** | a portion of SmallCap Value II |

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| | |
|:---|:---|
| **Sub-Advisor:** | **Victory Capital Management Inc. ("Victory Capital")**, 15935 La Cantera Pkwy, San Antonio, TX 78256, is an SEC-registered investment adviser that provides asset management services to individual and institutional clients through multiple investment franchises. |
| **Fund(s):** | a portion of MidCap Value I |

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| | |
|:---|:---|
| **Sub-Advisor:** | **Westwood Management Corp. ("Westwood")**, 200 Crescent Court, Suite 1200, Dallas, Texas 75201, is a registered investment advisor that was founded in 1983. |
| **Fund(s):** | a portion of LargeCap Value III |

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The SAI provides additional information about each portfolio manager's compensation, other accounts managed by the portfolio manager, and the portfolio manager's ownership of securities in the Funds.

**Participating Affiliate Agreement**

In rendering investment advisory services to a Fund, the advisor and each sub-advisor may use the resources of one or more of its respective foreign (non-U.S.) affiliates that are not registered under the Investment Advisers Act of 1940, as amended, to provide portfolio management, research, and trading services to the Fund. Under a Participating Affiliate Agreement, and pursuant to applicable guidance from the Staff of the SEC, U.S. registered advisors are allowed to use investment advisory and trading resources of such unregistered advisory affiliates subject to the regulatory supervision of the registered advisor. For example, some Principal Funds assets are managed by employees of Principal Global Investors (Europe) Limited pursuant to such an arrangement. Each such affiliate and any of their respective employees who provide services to a Fund are considered under the Participating Affiliate Agreement to be "supervised persons" of the advisor or sub-advisor (as applicable) as that term is defined in the Investment Advisers Act of 1940, as amended.

**Fees Paid to PGI**

Each Fund pays PGI a fee for its services, which includes the fee PGI pays to sub-advisors, as applicable.

The fee each Fund paid (as a percentage of the Fund's average daily net assets) for the fiscal year ended October 31, 2025 was:

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---

| | | | |
|:---|:---|:---|:---|
| **Fund/Portfolio** | **Percentage of the Fund's Average Daily Net Assets** | **Fund/Portfolio** | **Percentage of the Fund's Average Daily Net Assets** |
| California Municipal | 0.40% | Principal LifeTime 2045 | 0.00% |
| Core Fixed Income | 0.33% | Principal LifeTime 2050 | 0.00% |
| Core Plus Bond | 0.42% | Principal LifeTime 2055 | 0.00% |
| Diversified Income | 0.66% | Principal LifeTime 2060 | 0.00% |
| Diversified International | 0.74% | Principal LifeTime 2065 | 0.00% |
| Equity Income | 0.50% | Principal LifeTime 2070 | 0.00% |
| Finisterre Emerging Markets Total Return Bond | 0.75% | Principal LifeTime Hybrid Income | 0.00% |
| Global Emerging Markets | 0.95% | Principal LifeTime Hybrid 2015 | 0.00% |
| Global Real Estate Securities | 0.88% | Principal LifeTime Hybrid 2020 | 0.00% |
| Government & High Quality Bond | 0.49% | Principal LifeTime Hybrid 2025 | 0.00% |
| Government Money Market | 0.15% | Principal LifeTime Hybrid 2030 | 0.00% |
| High Yield | 0.50% | Principal LifeTime Hybrid 2035 | 0.00% |
| Inflation Protection | 0.37% | Principal LifeTime Hybrid 2040 | 0.00% |
| International Bond<sup>(1)</sup> | N/A | Principal LifeTime Hybrid 2045 | 0.00% |
| International Equity | 0.60% | Principal LifeTime Hybrid 2050 | 0.00% |
| LargeCap Growth I | 0.60% | Principal LifeTime Hybrid 2055 | 0.00% |
| LargeCap S&P 500 Index | 0.08% | Principal LifeTime Hybrid 2060 | 0.00% |
| LargeCap Value III | 0.69% | Principal LifeTime Hybrid 2065 | 0.00% |
| MidCap | 0.56% | Principal LifeTime Hybrid 2070 | 0.00% |
| MidCap S&P 400 Index | 0.15% | Real Estate Securities | 0.79% |
| MidCap Value I | 0.65% | SAM Balanced | 0.27% |
| Money Market | 0.39% | SAM Conservative Balanced | 0.27% |
| Overseas | 0.88% | SAM Conservative Growth | 0.27% |
| Principal Capital Appreciation | 0.41% | SAM Flexible Income | 0.27% |
| Principal LifeTime Strategic Income | 0.00% | SAM Strategic Growth | 0.27% |
| Principal LifeTime 2015 | 0.00% | Short-Term Income | 0.35% |
| Principal LifeTime 2020 | 0.00% | SmallCap | 0.72% |
| Principal LifeTime 2025 | 0.00% | SmallCap Growth I | 0.85% |
| Principal LifeTime 2030 | 0.00% | SmallCap S&P 600 Index | 0.15% |
| Principal LifeTime 2035 | 0.00% | SmallCap Value II | 0.89% |
| Principal LifeTime 2040 | 0.00% | Tax-Exempt Bond | 0.40% |

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<sup>(1)</sup> The International Bond Fund did not exist as of October 31, 2025. The management fee for the International Bond Fund is 0.48% as a percentage of the Fund's average daily net assets.

The discussions regarding the basis for the Board's approval of various management and sub-advisory agreements are available for all Funds (other than the International Bond Fund) in the Registrant's Form N-CSR filing on the SEC's website at www.sec.gov for the period ending October 31, 2025. The discussions regarding the basis for the Board's approval of the management agreement will be available for the International Bond Fund in the Registrant's Form N-CSR filing on the SEC's website at www.sec.gov for the period ending April 30, 2026.

**Voluntary Waivers**

Government Money Market and Money Market Funds PGI has voluntarily agreed to limit the Fund's expenses to the extent necessary to maintain a 0% yield. The voluntary expense limit may be revised or terminated at any time without notice to the shareholders.

**Manager of Managers**

The Registrant operates as a Manager of Managers. Under an order received from the SEC (the "Order"), the Registrant and PGI may enter into and materially amend agreements with unaffiliated and wholly-owned affiliated sub-advisors (affiliated sub-advisors that are at least 95% owned, directly or indirectly, by PGI or an affiliated person of PGI) without obtaining shareholder approval, including to:

• hire one or more sub-advisors;

• change sub-advisors; and

• reallocate management fees between PGI and sub-advisors.

Although there is no present intent to do so, the Funds may, in the future, rely on current SEC Staff guidance that expands relief under the Order to allow PGI to enter into and materially amend agreements with majority-owned

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affiliated sub-advisors (affiliated sub-advisors that are at least 50% owned, directly or indirectly, by PGI or an affiliated person of PGI), and, further, to all sub-advisors regardless of the degree of affiliation with PGI.

In order to rely on the varying degrees of relief granted by the Order and/or the SEC Staff guidance, a Fund must receive approval from its shareholders (or, in the case of a new Fund, the Fund's sole initial shareholder before the Fund is available to the other purchasers).

The shareholders of each Fund have approved such Fund's reliance on the Order, as supplemented by the SEC Staff guidance, as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Fund/Portfolio** | **Unaffiliated<br>Sub-Advisors** | **Wholly-Owned** <br>**Affiliated Sub-Advisors** | **Majority-Owned<br>Affiliated Sub-Advisors** | **Any Other** <br>**Sub-Advisors<br>Regardless of<br>Degree of Affiliation** |
| California Municipal | X |  |  |  |
| Core Plus Bond | X | X | X |  |
| Diversified Income | X | X | X |  |
| Global Emerging Markets | X | X | X |  |
| Global Real Estate Securities | X | X | X |  |
| Principal LifeTime 2055 | X | X | X |  |
| Principal LifeTime 2065 | X | X | X |  |
| Principal Lifetime Hybrid 2055 | X | X | X |  |
| Principal Lifetime Hybrid 2060 | X | X | X |  |
| Real Estate Securities | X | X | X |  |
| SAM Conservative Growth | X | X | X |  |
| SmallCap Fund | X | X | X |  |
| Tax-Exempt Bond | X |  |  |  |
| All Other Funds/Portfolios | X | X | X | X |

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PGI has ultimate responsibility for the investment performance of each Fund that utilizes a sub-advisor due to its responsibility to oversee sub-advisors and recommend their hiring, termination, and replacement.

In accordance with a separate exemptive order that the Registrant and PGI have obtained from the SEC, the Board may approve a new sub-advisory agreement or a material amendment to an existing sub-advisory agreement at a meeting that is not in person, provided that the Board Members are able to participate in the meeting using a means of communication that allows them to hear each other simultaneously during the meeting and the other conditions in the exemptive order are met.

**PRICING OF FUND SHARES**

Each Fund's shares are bought and sold at the current share price. The share price of each class of each Fund is calculated each day the New York Stock Exchange ("NYSE") is open. Share prices are not calculated on the days on which the NYSE is closed for trading, generally: New Year's Day; Martin Luther King, Jr. Day; Washington's Birthday/ Presidents' Day; Good Friday; Memorial Day; Juneteenth; Independence Day; Labor Day; Thanksgiving Day; and Christmas. The share price of each Fund (other than the Government Money Market Fund) is determined as of the close of business of the NYSE (normally, 3:00 p.m. Central Time). The share price of the Government Money Market Fund is normally determined at 4:00 p.m. Central Time. When an order to buy or sell shares is received, the share price used to fill the order is the next price calculated after the order is received (in proper form) at the transaction processing center in Kansas City, Missouri. To process your transaction (purchase, redemption, or exchange) on the day it is received, it must be received (with complete information):

• on a day that the NYSE is open; and

• for each Fund (other than the Government Money Market Fund), before the close of trading on the NYSE (normally, 3:00 p.m. Central Time); or

• for the Government Money Market Fund, normally before 4:00 p.m. Central Time.

Orders received after 3:00 p.m. Central Time (for all Funds, other than the Government Money Market Fund) or 4:00 p.m. Central Time (for the Government Money Market Fund) or on days that the NYSE is not open will be processed on the next day that the NYSE is open for normal trading. The Funds will not treat an intraday unscheduled disruption in NYSE trading as a closure of the NYSE and will price shares as of 3:00 p.m. Central Time or, in the case of the Government Money Market Fund, 4:00 p.m. Central Time, if the particular disruption directly affects only the NYSE.

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If we receive an application or purchase request for a new mutual fund account or subsequent purchase into an existing account that is accompanied by a check and the application or purchase request does not contain complete information, we may hold the application (and check) for up to two business days while we attempt to obtain the necessary information. If we receive the necessary information within two business days, we will process the order using the next share price calculated. If we do not receive the information within two business days, we will return the application and check to you.

For all Funds, except the Government Money Market and Money Market Funds, the share price is calculated by:

• taking the current market value of the total assets of the Fund,

• subtracting liabilities of the Fund,

• dividing the remainder proportionately into the classes of the Fund,

• subtracting the liability of each class, and

• dividing the remainder by the total number of shares outstanding for that class.

With respect to any portion of a Fund's assets invested in other registered investment companies, that portion of the Fund's NAV is calculated based on the price (NAV or market, as applicable) of such other registered investment companies.

The securities of the Government Money Market and Money Market Funds are valued at amortized cost. The calculation procedure is described in the SAI.

**Notes:**

• If market quotations are not readily available for a security owned by a Fund, its fair value is determined using a policy adopted by the Board. Fair valuation pricing is subjective and creates the possibility that the fair value determined for a security may differ materially from the value that could be realized upon the sale of the security.

• A Fund's securities may be traded on foreign securities markets that generally complete trading at various times during the day before the close of the NYSE. Foreign securities and currencies are converted to U.S. dollars using the exchange rate in effect at the close of the NYSE. Securities traded outside of the Western Hemisphere are valued using a fair value policy adopted by the Registrant. These fair valuation procedures are intended to discourage shareholders from investing in the Funds for the purpose of engaging in market timing or arbitrage transactions.

• The trading of foreign securities generally or in a particular country or countries may not take place on all days the NYSE is open or may trade on days the NYSE is closed. Thus, the value of the foreign securities held by a Fund may change on days when shareholders are unable to purchase or redeem shares.

• Certain securities issued by companies in emerging markets may have more than one quoted valuation at any point in time. These may be referred to as local price and premium price. The premium price is often a negotiated price that may not consistently represent a price at which a specific transaction can be effected. The Registrant has a policy to value such securities at a price at which PGI expects the securities may be sold.

• The securities of the Government Money Market and Money Market Funds are valued at amortized cost. The calculation procedure is described in the SAI.

**CONTACT PRINCIPAL FUNDS, INC.** 

Contact information for Principal Funds, Inc. ("Principal Funds") is as follows:

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| | |
|:---|:---|
| **Mailing Addresses:** | **Mailing Addresses:** |
| **Regular Mail** | **Overnight Mail** |
| Principal Funds | Principal Funds |
| P.O. Box 219971 | 801 Pennsylvania Ave., Ste. 219971 |
| Kansas City, MO 64121-9971 | Kansas City, MO 64105-1307 |

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You may speak with a Client Relations Specialist by calling 1-800-222-5852, between 7:00 a.m. and 7:00 p.m. Central Time on any day that the NYSE is open.

To obtain Automated Clearing House ("ACH") or wire instructions, please contact a Client Relations Specialist.

For additional information about Principal Funds, Inc., go to www.PrincipalAM.com.

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**PURCHASE OF FUND SHARES**

Principal Funds, Inc. offers funds in multiple share classes: A, C, J, Institutional, R-3, R-5, R-6, and S. Funds available in multiple share classes have the same investments, but differing expenses. Institutional Class and Classes A, C, J, R-3, R-5, and R-6 shares are available in this Prospectus.

The Funds reserve the right to refuse or cancel any purchase orders, including those by exchange, for any reason. For example, the Funds do not intend to permit market timing because short-term or other excessive trading into and out of the Funds may harm performance by disrupting portfolio management strategies and by increasing expenses. Accordingly, the Funds may reject any purchase orders from market timers or investors that, in PGI's opinion, may be disruptive to the Funds. For these purposes, PGI may consider an investor's trading history in the Funds or other funds advised by PGI and accounts under common ownership or control.

PGI may recommend to the Board, and the Board may elect, to close certain Funds or share classes to new investors or to close certain Funds or share classes to new and existing investors.

The Registrant will not issue certificates for shares.

No salesperson, broker-dealer, or other person is authorized to give information or make representations about a Fund other than those contained in this Prospectus. Information or representations not contained in this Prospectus may not be relied upon as having been provided or made by the Registrant, a Fund, PGI, any sub-advisor, or Principal Funds Distributor, Inc. ("PFD" or the "Distributor").

**Procedures for Opening an Account**

<u>Classes A and C Shares</u>

Shares of the Funds are generally purchased through Financial Professionals. Financial Professionals may establish shareholder accounts according to their procedures or they may establish shareholder accounts directly with the Funds by visiting our website to obtain the appropriate forms.

Your Financial Professional can help you buy shares of the Funds by mail, through bank wire, direct deposit, or Automatic Investment Plan ("AIP"). No wires are accepted on days when the NYSE is closed or when the Federal Reserve is closed (because the bank that would receive your wire is closed). An investment in a Fund may be held in various types of accounts, including individual, joint ownership, trust, and business accounts. The Funds also offer a range of custodial accounts for those who wish to invest for retirement and/or education expenses. Prospective shareholders should consult with their Financial Professional before making decisions about the account and type of investment that are appropriate for them.

<u>Class J Shares</u>

Class J shares are currently available through registered representatives of:

• Principal Securities, Inc. ("PSI") who are also employees of Principal Life distribution channels used to directly market certain products and services of subsidiaries of Principal Financial Group, Inc. as well as provide retirement plan services and education on topics such as investing and retirement. These PSI-registered representatives are with Principal Connection (part of Principal Bank), and

• Selected broker-dealers that have entered into a selling agreement to offer Class J shares.

Class J shares are also available through an online IRA rollover tool on www.principal.com.

For more information about Class J shares of the Funds, please call Principal Connection at 1-800-247-8000.

<u>Institutional Class and Classes R-3, R-5, and R-6 Shares</u>

Shares of the Funds are generally purchased through Financial Professionals. There are no sales charges on Institutional Class and Classes R-3, R-5, and R-6 shares of the Funds.

Shareholder accounts in these share classes are generally maintained under an open account system. Under this system, an account is opened and maintained for each investor (generally within an omnibus account, plan level account, or institutional investor). Each investment is confirmed by sending the investor a statement of account showing the current purchase or sale and the total number of shares owned. The statement of account is treated by the Funds as evidence of ownership of Fund shares. Contact your Financial Professional for additional information on how to buy shares.

**Verification of Identity**

To help the government fight the funding of terrorism and money laundering activities, federal law requires financial institutions to obtain, verify, and record information that identifies each person who opens an account. When you open

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an account, we (or your Financial Professional) may ask for your name, address, date of birth, and other information that will allow us (or your Financial Professional) to verify your identity. We (or your Financial Professional) may also ask to see your driver's license or other identifying documents.

If concerns arise with verification of your identity, no transactions, other than redemptions, will be permitted while we attempt to reconcile the concerns. If we are unable to verify your identity on a timely basis, we may close your account or take such other action as we deem appropriate.

The Funds will not establish accounts with foreign addresses. If an existing shareholder with a U.S. address moves to a foreign location and updates the address on the shareholder's account, we are unable to process any purchases or exchanges on that account. The Funds will not establish accounts that are for the benefit of a business/organization that is illegal under federal and/or state law (such as a marijuana clinic) or a person who owns or receives income from such an entity or whose source of funds is illegal.

**Eligible Purchasers**

You must be an eligible purchaser for a particular share class to buy shares of a Fund available in that share class. At the sole discretion of the Distributor, the Fund may broaden or limit the designation of eligible purchasers, permit certain types of investors to open new accounts, impose further restrictions on purchases, or reject any purchase orders, all without prior notice. The Funds' shares may not be offered in every state. Please check with your Financial Professional or our home office for state availability.

<u>Institutional Class and Classes R-3, R-5, and R-6 Shares</u>

Some eligible purchasers (as listed below) purchase shares through plans or other intermediaries; such plans or intermediaries may impose fees in addition to those charged by the Funds. The services or share classes available to you may vary depending upon how you wish to purchase shares of the Fund. Each investor's financial considerations are different. You should speak with your Financial Professional to help you decide which share class is best for you.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Eligible purchasers currently include, but are not limited to:** | **Inst.** | **R-3** | **R-5** | **R-6** |
| retirement and pension plans to which Principal Life Insurance Company ("Principal Life") provides recordkeeping services | X | X | X | X |
| separate accounts of Principal Life | X | X | X | X |
| Principal Life or any of its subsidiaries or affiliates | X | X | X | X |
| any fund distributed by PFD if the fund seeks to achieve its investment objective by investing primarily in shares of mutual funds | X | X | X | X |
| clients of Principal Global Investors, LLC | X | X | X | X |
| certain employer-sponsored retirement plans with plan level omnibus accounts | X | X | X | X |
| certain pension plans and employee benefit plans | X | X | X | X |
| certain retirement account investment vehicles administered by foreign or domestic pension plans | X | X | X | X |
| an investor who buys shares through an omnibus account with certain intermediaries, such as a broker-dealer, bank, or other financial institution, pursuant to a written agreement between the intermediary and PFD or its affiliate | X | X | X | X |
| certain retirement plan clients that have an organization, approved by Principal Life, for purposes of providing plan recordkeeping services | X | X | X | X |
| investors investing at least $1,000,000 per fund | X |  |  | X |
| sponsors, recordkeepers, or administrators of wrap account, mutual fund asset allocation, or fee-based programs or participants in those programs | X |  |  | X |
| certain institutional investors that provide recordkeeping for retirement plans or other employee benefit plans | X |  |  | X |
| institutional clients that Principal Life has approved for purposes of providing plan recordkeeping | X |  |  | X |
| institutional investors investing for their own account, including banks, trust companies, financial intermediaries, corporations, endowments, and foundations | X |  |  | X |
| collective trust funds, fund of funds, or other pooled investment vehicles, and entities acting for the account of a public entity | X |  |  | X |
| certain clients of a private banking division pursuant to a written agreement between the bank and PFD or its affiliate | X |  |  | X |
| the portfolio manager of any advisor to the fund | X |  |  |  |
| certain institutional investors with special arrangements (for example, insurance companies, employee benefit plans, retirement plans, and Section 529 Plans, among others) | X |  |  | X |
| retirement plans and IRAs investing through a retirement marketplace enabled by state legislation | X |  |  |  |
| ReFlow Fund, LLC in connection with the ReFlow liquidity program | X |  |  | X |

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<u>Finisterre Emerging Markets Total Return Bond Fund</u>

For retail investors (i.e. non-employer sponsored retirement plan investors), effective as of the close of the New York Stock Exchange on April 13, 2026, and for employer-sponsored retirement plan investors, effective as of the close of the New York Stock Exchange on June 12, 2026, the Finisterre Emerging Markets Total Return Bond Fund will no longer be available for purchases from new investors except in limited circumstances.

• Shareholders, including those in omnibus accounts, who own shares of the Finisterre Emerging Markets Total Return Bond Fund as of April 13, 2026 (for retail investors, i.e., non-employer sponsored retirement plan investors) or June 12, 2026 (for employer sponsored retirement plan investors), may continue to make purchases, exchanges, and dividend or capital gains reinvestment in existing accounts.

• Registered Investment Advisor ("RIA") and bank trust firms that have an investment allocation to the Emerging Market Debt Total Return Strategy (i.e., investments in the same strategy used in collective investment trust, insurance separate accounts, or separately managed accounts) in a fee-based, wrap, or advisory account, may add new clients, or purchase shares in the Finisterre Emerging Markets Total Return Bond Fund. The Finisterre Emerging Markets Total Return Bond Fund will not be available to new RIA and bank trust firms.

• Shareholders through accounts at private banks may continue to purchase shares and exchange into the Finisterre Emerging Markets Total Return Bond Fund. Private banks that have an investment allocation to the Emerging Market Debt Total Return Strategy (i.e., investments in the same strategy used in collective investment trust, insurance separate accounts, or separately managed accounts) may add new clients to the Finisterre Emerging Markets Total Return Bond Fund. The Finisterre Emerging Markets Total Return Bond Fund will not be available to private bank or private bank platforms not already investing in the Emerging Market Debt Total Return Strategy.

• Shareholders in broker/dealer wrap or fee-based programs that have an investment allocation to the Finisterre Emerging Markets Total Return Bond Fund may continue to purchase shares and exchange into the Finisterre Emerging Markets Total Return Bond Fund. Existing broker/dealer wrap or fee-based programs may add new participants.

• Shareholders in certain types of retirement plans (including 401(k)s, SEPs, SIMPLEs, 403(b)s, etc.) may continue to purchase shares and exchange into the Finisterre Emerging Markets Total Return Bond Fund. New participants in these plans may elect to purchase shares of the Finisterre Emerging Markets Total Return Bond Fund.

• Retirement plans that, as of April 13, 2026, have the Finisterre Emerging Markets Total Return Bond Fund in their plan lineup may continue to offer the Finisterre Emerging Markets Total Return Bond Fund. Retirement plans in transition as of April 13, 2026 will have until June 12, 2026 to fund any new accounts in the Finisterre Emerging Markets Total Return Bond Fund.

• Investors who open a new IRA transfer or rollover account by the close of business on April 13, 2026 will have until June 12, 2026 to fund these accounts.

• Shareholders within brokerage accounts may continue to purchase shares of the Finisterre Emerging Markets Total Return Bond Fund; however, new brokerage accounts will not be permitted to begin investing in the Finisterre Emerging Markets Total Return Bond Fund after April 13, 2026.

• 529 plans that include the Finisterre Emerging Markets Total Return Bond Fund within their investment options may continue to purchase shares and exchange into the Finisterre Emerging Markets Total Return Bond Fund.

• Investors who have a direct investment in an Emerging Market Debt Total Return Strategy (i.e., investments in the same strategy used in collective investment trust, insurance separate accounts, or separately managed accounts) may, subject to the approval of the Distributor, purchase shares in the Finisterre Emerging Markets Total Return Bond Fund.

At the sole discretion of the Distributor, the Finisterre Emerging Markets Total Return Bond Fund may permit certain types of investors to open new accounts, impose further restrictions on purchases, or reject any purchase orders, all without prior notice.

<u>MidCap Fund</u>

For retail investors (i.e., non-employer sponsored retirement plan investors), effective as of the close of the NYSE on June 14, 2013, and for employer-sponsored retirement plan investors, effective as of the close of the NYSE on August 15, 2013, the MidCap Fund is no longer available for purchases from new investors except in limited circumstances, such as the following:

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• Shareholders, including those in omnibus accounts, who owned shares of the MidCap Fund as of June 14, 2013 (for retail investors, i.e., non-employer sponsored retirement plan investors) or August 15, 2013 (for employer-sponsored retirement plan investors), may continue to make purchases, exchanges, and dividend or capital gains reinvestment in existing accounts.

• Registered Investment Advisor (RIA) and bank trust firms that have an investment allocation to the MidCap Strategy (i.e., investments in the same strategy used in collective investment trust, separately managed accounts, individually managed accounts, or insurance separate accounts) in a fee-based, wrap, or advisory account, may continue to add new clients, purchase shares, and exchange into the MidCap Fund. The MidCap Fund will not be available to new RIA and bank trust firms.

• Shareholders through accounts at private banks may continue to purchase shares and exchange into the MidCap Fund. Private banks that have an investment allocation to the MidCap Strategy may add new clients to the MidCap Fund. The MidCap Fund will not be available to private bank or private bank platforms not already investing in the MidCap Strategy.

• Shareholders in broker/dealer wrap or fee-based programs that have an investment allocation to the MidCap Fund may continue to purchase shares and exchange into the MidCap Fund. Existing broker/dealer wrap or fee-based programs may add new participants.

• Shareholders in certain types of retirement plans (including 401(k)s, SEPs, SIMPLEs, 403(b)s, etc.) may continue to purchase shares and exchange into the MidCap Fund. New participants in these plans may elect to purchase shares of the MidCap Fund.

• Shareholders within brokerage accounts may continue to purchase shares of the MidCap Fund; however, new brokerage accounts will not be permitted to begin investing in the MidCap Fund after June 14, 2013.

• 529 plans that include the MidCap Fund within their investment options may continue to purchase shares and exchange into the MidCap Fund.

• Investors who have a direct investment in the MidCap Strategy may, subject to the approval of the Distributor, purchase shares in the MidCap Fund.

• Shareholders that invest through accounts with Principal Securities, Inc.

At the sole discretion of the Distributor, the MidCap Fund may permit certain types of investors to open new accounts, impose further restrictions on purchases, or reject any purchase orders, all without prior notice.

<u>Money Market Fund</u>

The Money Market Fund qualifies as a retail money market fund; therefore, it uses amortized cost to value its portfolio securities, transacts at a $1.00 share price, and maintains a $1.00 stable NAV.

Natural Persons. As a retail money market fund, the Money Market Fund has adopted policies and procedures reasonably designed to limit all beneficial owners of the Fund to natural persons (whether investing directly or through an intermediary). A natural person is an individual human being with sole or shared voting and/or investment power over the investment. New sales or exchanges into the Money Market Fund by investors who do not meet the definition of a natural person (whether investing directly or through an intermediary) will not be allowed. If a non-natural person invests (whether directly or through an intermediary) in the Money Market Fund, the Money Market Fund will involuntarily redeem those investors. The Money Market Fund will provide 60-days advance notice prior to involuntarily redeeming shares owned by investors who do not meet the definition of a natural person (whether investing directly or through an intermediary).

**Investment Company Purchasers**

Each Fund is an investment company registered with the SEC under the 1940 Act. If a purchaser of Fund shares is also a registered investment company or a private fund relying on Section 3(c)(1) or Section 3(c)(7) of the 1940 Act, it may be limited by the 1940 Act in the amount of Fund shares it can purchase (i.e., Section 12(d)(1)(A)). Such purchaser must comply with such limitations or avail itself, if possible, of any applicable exemptions from such limitations (e.g., a registered investment company may rely on Rule 12d1-4 of the 1940 Act).

**Minimum Investments**

<u>Classes A, C, and J Shares</u>

Principal Funds has a minimum initial investment amount of $1,000 and a minimum subsequent investment amount of $100. Initial and subsequent investment minimums apply on a per-Fund basis for each Fund in which a shareholder invests.

Shareholders must meet the minimum initial investment amount of $1,000 unless an Automatic Investment Plan ("AIP") is established. With an AIP, the minimum initial investment is $100. Accounts or automatic payroll deduction

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plans established with an AIP that do not meet the minimum initial investment must maintain subsequent automatic investments that total at least $1,200 annually.

Minimum initial and subsequent investments may be waived or reduced on accounts set up for: certain employee benefit plans; retirement plans qualified under Internal Revenue Code Section 401(a); payroll deduction plans submitting contributions in an electronic format devised and/or approved by the Fund; the ReFlow liquidity program; and purchases through an omnibus account with a broker-dealer, investment advisor, or other financial institution. Your financial intermediary may impose different investment minimums.

<u>Institutional Class and Classes R-3, R-5, and R-6 Shares</u>

There are no minimum initial or subsequent investment requirements for an investor who otherwise qualifies as an eligible purchaser.

**Payment**

<u>Classes A, C, and J Shares</u> 

Payments are to be made via personal or financial institution check (for example, a bank or cashier's check), bank wire, direct deposit, or Automatic Investment Plan ("AIP"). No wires are accepted on days when the NYSE is closed or when the Federal Reserve is closed (because the bank that would receive your wire is closed). We consider your purchase of Fund shares by check to be your authorization to make an automated clearing house ("ACH") debit entry to your account. We reserve the right to refuse any payment that we feel presents a fraud or money laundering risk. Examples of the types of payments we will not accept are cash, starter checks, money orders, travelers' checks, credit card checks, and foreign checks.

The Funds may, in their discretion and under certain limited circumstances, accept securities as payment for Fund shares at the applicable net asset value ("'NAV"). For federal income tax purposes, a purchase of shares with securities will be treated as a sale or exchange of such securities on which the investor will generally realize a taxable gain or loss. Each Fund will value securities used to purchase its shares using the same method the Registrant uses to value its portfolio securities as described in this Prospectus.

You may reinvest your redemption proceeds, dividend payment, or capital gain distribution without an initial sales charge or contingent deferred sales charge, in the same share class of any other Fund of Principal Funds within 90 days of the date of the redemption. To purchase the shares without a sales charge (initial or contingent deferred) as described in this section, the shareholder must notify Principal Funds at the time of reinvestment that the shareholder is reinvesting proceeds within 90 days of the date of redemption. The original redemption will be considered a sale for federal (and state) income tax purposes even if the proceeds are reinvested within 90 days. If a loss is realized on the sale, the reinvestment may be subject to the "wash sale" rules resulting in the postponement of the recognition of the loss for tax purposes.

Your Financial Professional can help you make a direct deposit from your paycheck (if your employer approves) or from a government allotment. Direct deposit allows you to deposit automatically all or part of your paycheck (or government allotment) to your Principal Funds account(s). You can request a Direct Deposit Authorization Form to give to your employer or the governmental agency (either of which may charge a fee for this service). Shares will be purchased on the day the ACH notification is received by the transfer agent's bank. On days when the NYSE is closed, but the bank receiving the ACH notification is open, your purchase will be priced at the next calculated share price.

Your Financial Professional can help you establish an Automatic Investment Plan ("AIP"). You may make regular monthly investments with automatic deductions from your bank or other financial institution account. You select the day of the month the deduction is to be made (if none is selected, the investment will be made on the 15th of the month). If that date is a non-trading day, we will process the deduction on the next trading day. If the next trading day falls in the next month or year, we will process the deduction on the day before your selected day.

<u>Institutional Class and Classes R-3, R-5, and R-6 Shares</u>

Payments are generally to be made through your plan or intermediary. We reserve the right to refuse any payment that we feel presents a fraud or money laundering risk. Examples of the types of payments we will not accept are cash, starter checks, money orders, travelers' checks, credit card checks, and foreign checks.

For Institutional Class shareholders investing through a retirement marketplace enabled by state legislation, please contact Principal Funds by calling 1-800-222-5852, between 7:00 a.m. and 7:00 p.m. Central Time on any day that the NYSE is open.

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**Automatic Conversion of Class C Shares**

Effective April 19, 2021, Class C shares held for eight years after purchase will automatically convert to Class A shares of the same Fund. The automatic conversion will generally occur on the 22nd day of each month or, if the 22nd day is not a business day, on the next business day (each, a "Conversion Date"). If the eighth anniversary of a purchase of Class C shares falls on a Conversion Date, a shareholder's Class C shares will be automatically converted on that date. If the eighth anniversary occurs between Conversion Dates, a shareholder's Class C shares will be automatically converted on the next Conversion Date after such anniversary. Automatic conversions will be on the basis of the NAV per share, without the imposition of any sales charge (including a CDSC), fee, or other charge. Automatic conversions of Class C shares will constitute tax-free exchanges for federal income tax purposes.

Class C shares of a Fund acquired through a reinvestment of dividends and distributions will convert to Class A shares of the Fund on the Conversion Date pro rata with the converting Class C shares of that Fund that were not acquired through reinvestment of dividends and distributions.

Class C shares held through a financial intermediary in certain omnibus accounts may be converted by the financial intermediary once it is determined that the Class C shares have been held for the required period. It is the financial intermediary's (and not the Fund's) responsibility to maintain appropriate supporting records and to ensure that the shareholder is credited with the proper holding period, and it is the responsibility of the shareholder or their financial intermediary to determine that the shareholder is eligible for the conversion. Additionally, some intermediaries may have adopted different policies and procedures related to the conversion of Class C shares, including shorter schedules for conversion. Please consult with your financial intermediary if you have any questions.

**REDEMPTION OF FUND SHARES**

Under normal circumstances, you may redeem shares of any class of the Funds at any time. There is no fee for any redemption. The Board has determined that it is not necessary to impose a fee upon the redemption of Fund shares because the Fund has adopted transfer restrictions as described in Exchange of Fund Shares.

The shares you redeem will have the NAV per share that is next computed after the Fund receives and accepts your redemption order in proper and complete form. The amount you receive will be reduced by any applicable CDSC, except as noted below; see Choosing a Share Class and the Costs of Investing - One-Time Fee - Contingent Deferred Sales Charge ("CDSC") - CDSC Waiver. Your redemption proceeds will generally be sent on the next business day (a day when the NYSE is open for normal business) following the date on which your request is received and accepted in proper and complete form. Although you can redeem your shares at any time, if you purchased shares by check or ACH and subsequently request a redemption of those shares, your redemption proceeds will generally be delayed for seven calendar days after the purchase to allow a sufficient period of time to ensure your recent payment has been cleared by the relevant bank. To redeem shares purchased by check or ACH within the previous seven days, the Funds require redemption requests with respect to those shares to be submitted in writing or by telephone, unless you contact the Fund and make an alternate arrangement.

Under unusual circumstances, a Fund may suspend redemptions, or postpone payments for more than seven days, as permitted by federal securities law.

Under normal circumstances, the Funds expect to meet redemption requests through holdings of cash, the sale of investments held in cash equivalents, and/or by selling liquid index futures or other instruments used for cash management purposes. In situations in which such holdings are not sufficient to meet redemption requests, a Fund will typically borrow money through the Fund's interfund lending facility or through a bank line-of-credit. No Fund can borrow under the bank line-of-credit while also a lender under the interfund lending facility. Funds may also choose to sell portfolio assets for the purpose of meeting such requests. Each Fund further reserves the right to distribute "in kind" securities from the Fund's portfolio in lieu (in whole or in part) of cash under certain circumstances, including under stressed market conditions.

The agreement for the above-mentioned line of credit is with The Bank of New York Mellon.

**Classes A, C, and J Shares**

You will be charged a $10 wire fee if you have the sale proceeds wired to your bank. It may take additional business days for your financial institution to post this payment to your account at that financial institution. At your request, the check will be sent overnight (a $15 overnight fee will be deducted from your account unless other arrangements are made).

Distributions from IRA, SEP, SIMPLE, 403(b), and SAR-SEP accounts may be taken as:

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• lump sum of the entire interest in the account,

• partial interest in the account, or

• periodic payments of either a fixed amount or an amount based on certain life expectancy calculations.

Tax penalties may apply to distributions before the participant reaches age 59½.

Selling shares may create a gain or a loss for federal (and state) income tax purposes. You should maintain accurate records for use in preparing your income tax returns.

Generally, sales proceeds are:

• payable to all owners on the account (as shown in the account registration) and

• mailed to the address on the account (if not changed within the last 15 days) or sent by wire or ACH to previously authorized U.S. bank account (if not added or changed within the last 15 days).

For other payment arrangements, please call Principal Funds. You should also call Principal Funds for special instructions that may apply to sales from accounts:

• when an owner has died;

• for certain employee benefit plans; or

• owned by corporations, partnerships, agents, or fiduciaries.

Except as described above, you may redeem shares of the Funds in any of the following ways:

<u>By Mail</u>

To sell shares by mail, you must:

• Send a letter or our distribution form, which is signed by an owner of the account,

• Specify the account number, and

• Specify the number of shares or the dollar amount to be sold.

If you send a letter rather than our distribution form, the letter must be in a form acceptable to the Fund.

<u>By Telephone or Website, in amounts of $100,000 or less</u>

To sell shares by telephone:

• The request may be made by a shareholder or by the shareholder's Financial Professional.

• The combined amount requested from all funds to which the redemption request relates is $100,000 or less.

• The address on the account must not have been changed within the last 15 days and telephone privileges must apply to the account from which the shares are being sold.

• Wire or ACH to a previously authorized U.S. bank account that must not have been added or changed within the last 15 days.

• If our phone lines are busy or our website is unavailable, you may need to send in a written sell order.

Telephone and/or website redemption privileges are NOT available for all account types.

**Class A shares of Money Market Fund: Sell Shares by Checkwriting** 

• Checkwriting must be elected on initial application or by written request to Principal Funds. Such election continues in effect until the Fund receives written notice revoking or changing the election.

• The Fund can only sell shares after your check making the Fund investment has cleared your bank.

• Checks must be written for at least $250. The Fund reserves the right to increase the minimum check amount.

• The rules of the bank on which the checks are drawn concerning checking accounts apply.

• If the account does not have sufficient funds to cover the check, it is marked "Insufficient Funds" and returned (the Fund may revoke checkwriting on accounts on which "Insufficient Funds" checks are drawn).

• Accounts may not be closed by withdrawal check (accounts continue to earn dividends until checks clear and the exact value of the account is not known until the check is received by the bank).

• Checkwriting is available only for non-qualified accounts.

• Neither the Fund, the bank, nor PGI shall incur any liability for honoring the checks, selling shares to pay checks, or for returning checks unpaid.

*•* Checkwriting may be converted to a point-of-purchase debit from your account. This only applies if such service is available at the business with which you are doing business.

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• If you have checkwriting privileges on your Money Market Fund and you write a check, if the check is received for payment by the Fund's transfer agent while a liquidity fee is in effect, the applicable liquidity fee will be redeemed from the remaining balance of your Money Market Fund account and the face value of the check will be paid to the payee. If your Money Market Fund does not have sufficient funds to cover the combined value of the check and the liquidity fee, the check will be marked "Insufficient Funds" and returned.

**Classes A, C, J, and Institutional Shares - Systematic Withdrawal Plans**

You may set up a systematic withdrawal plan on a monthly, quarterly, semiannual, or annual basis to sell enough shares to provide a fixed amount of money ($100 minimum amount; the required minimum is waived to the extent necessary to meet the required minimum distribution as defined by the Internal Revenue Code).

You can set up a systematic withdrawal plan by:

• completing the applicable section of the application,

• sending us your written instructions,

• completing a Systematic Withdrawal Plan Request form, or

• calling us if you have telephone privileges on the account (telephone privileges may not be available for all types of accounts).

Your systematic withdrawal plan continues until:

• you instruct us to stop or

• your Fund account balance is zero.

When you set up the withdrawal plan, you select which day you want the sale made (if none is selected, the sale will be made on the 15th of the month). If the selected date is not a trading day, the sale will take place on the preceding trading day (if that day falls in the month or year before your selected date, the transaction will take place on the next trading day after your selected date). If telephone privileges apply to the account, you may change the date or amount by telephoning us. Sales made under your systematic withdrawal plan will reduce and may eventually exhaust your account. The Fund from which the systematic withdrawal is made makes no recommendation as to either the number of shares or the fixed amount that you withdraw.

**Institutional Class and Classes R-3, R-5, and R-6 Shares**

You may redeem shares of the Funds in any of the following ways:

<u>Through an Employer Sponsored Retirement Plan Administrator or Record-Keeper</u>

If you own Fund shares in an eligible retirement or employee benefit plan, you must sell your shares through the plan's administrator or record-keeper.

<u>Through your Financial Professional</u>

If your Fund shares are held for you in nominee form, you must sell those shares through your intermediary or dealer.

<u>By Mail</u>

To sell shares by mail, you must:

• Send a letter or our distribution form, which is signed by an owner of the account,

• Specify the account number, and

• Specify the number of shares or the dollar amount to be sold.

If you send a letter rather than our distribution form, the letter must be in a form acceptable to the Fund.

<u>By Telephone</u>

To sell shares by telephone:

• Telephone privileges must apply to the account from which the shares are sold.

• A shareholder or the shareholder's Financial Professional may request to sell shares by telephone.

• A maximum amount (listed below) of redemption requests will be permitted per day per account, as the combined amount from all funds, provided the proceeds are to be sent to a previously authorized U.S. bank account that must not have been added or changed within the last 15 days:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ $10,000,000 for Institutional Class.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ $500,000 for Classes R-3, R-5, and R-6.

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• A maximum of $500,000 of redemption requests will be permitted per day, as the combined amount from all funds, provided the proceeds are to be sent by check through the mail to the address on the account and such address must not have changed within the last 15 days.

• If our telephone lines are busy, you may need to send in a written sell order.

**Distributions in Kind**

Payment for shares of the Funds tendered for redemption is ordinarily made by check. However, the Funds may determine that it would be detrimental to the remaining shareholders of a Fund to make payment of a redemption order wholly or partly in cash. Under certain circumstances, therefore, each of the Funds may pay the redemption proceeds in whole or in part by a distribution of "in kind" securities from the Fund's portfolio in lieu of cash. If a Fund pays the redemption proceeds in kind, the redeeming shareholder might incur brokerage or other costs in selling the securities for cash. In addition, the securities received will be subject to market risk until sold. Typically, such in kind redemptions made to an affiliated person would be distributed pro rata. Each Fund will value securities used to pay redemptions in kind using the same method the Registrant uses to value its portfolio securities as described in this Prospectus. The Funds may also use redemption in kind for certain Fund shares held by ReFlow.

**Money Market Fund**

<u>Liquidity Fees on Redemptions.</u> As a retail money market fund, the Money Market Fund has adopted policies and procedures regarding the imposition of liquidity fees on redemptions (including one-time redemptions, systematic redemptions, and exchanges out of the Money Market Fund). The imposition of liquidity fees affects checkwriting as described in Class A Shares of Money Market Fund: Sell Shares by Checkwriting.

<u>Imposition.</u> If the Money Market Fund's Board (or PGI, in accordance with Board-approved guidelines) determines that a liquidity fee is in the best interests of the Fund, the Fund must institute a liquidity fee (not to exceed 2% of the value of the shares redeemed). This discretionary liquidity fee will be applied to all Fund shares for which redemption requests are submitted. If Fund shares are held through a financial intermediary, the Fund may rely on that intermediary to assess the Fund's discretionary liquidity fees on underlying shareholder accounts.

<u>Duration.</u> A discretionary liquidity fee will commence if the Board (or PGI, in accordance with Board-approved guidelines) determines to impose it (as early as the same day the Board or PGI makes the determination) and will remain in place until the Board (or PGI, in accordance with Board-approved guidelines) determines that imposing the discretionary liquidity fee is no longer in the best interests of the Money Market Fund.

<u>Investor Communications.</u> The Money Market Fund will communicate the imposition or lifting of a liquidity fee in various ways, including:

• filing a prospectus supplement, and

• posting information on its website.

The Money Market Fund will communicate the imposition or lifting of a liquidity fee in its Form N-MFP filing made with the U.S. Securities and Exchange Commission, which it must file no later than the fifth business day of each month (for information as of the previous month).

<u>Use of Fee Proceeds</u>

The liquidity fees imposed by the Money Market Fund will be used to offset the costs of liquidity incurred by the Fund for redeeming shareholders and to protect the Fund's NAV.

<u>Tax Consequences to the Money Market Fund and Investors of the Fund's Receipt of Liquidity Fees</u>

It is currently anticipated that shareholders of money market funds that impose a liquidity fee may generally treat the fee on the redemption as offsetting the shareholder's amount realized on the redemption (thereby decreasing the shareholder's gain, or increasing the shareholder's loss, on the redeemed amount). The fund anticipates using 100% of a liquidity fee to help repair a market-based net asset value per share that was below $1.00.

Liquidity fees are expected to be non-taxable to the Fund. A money market fund that uses amortized cost to maintain a stable share price of $1.00 may need to distribute to its remaining shareholders sufficient value to prevent the fund from breaking the buck on the upside (i.e., by rounding up to $1.01 in pricing its shares), if the imposition of liquidity fees causes the fund's market-based net asset value to reach $1.0050. To the extent that the fund has sufficient earnings and profits to support the distribution, the additional dividends would be taxable as ordinary income to shareholders and would be eligible for deduction by the funds. Any distribution in excess of the fund's earnings and profits is treated as a return of capital, which would reduce your cost basis in the fund shares.

<u>Liquidation</u>. If the Government Money Market Fund or Money Market Fund, at the end of a business day, has invested less than 10% of its total assets in weekly liquid assets or if the Government Money Market Fund's or Money Market

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Fund's price per share, rounded to the nearest one percent, has deviated from $1.00 or the Board determines that such deviation is likely to occur, the Board can irrevocably approve the liquidation of the Government Money Market Fund or Money Market Fund.

**EXCHANGE OF FUND SHARES**

An exchange between Funds is a redemption of shares of one Fund and a concurrent purchase of shares in another Fund with the redemption proceeds. All exchanges completed on the same day are considered a single exchange for purposes of the exchange limitations described below. To prevent excessive exchanges, and under other circumstances where the Board or PGI believes it is in the best interests of the Fund, the Fund reserves the right to revise or terminate this exchange privilege, limit the amount or further limit the number of exchanges, reject any exchange, or close an account.

**Classes A, C, and J Shares**

Your shares in the Funds (except Money Market) may be exchanged without a sales charge or CDSC for the same class of any other Principal Funds. However, the original purchase date of the shares from which an exchange is made is used to determine if newly acquired shares are subject to a CDSC when they are sold. The Fund reserves the right to revise or terminate the exchange privilege at any time.

You may exchange shares by:

• sending a written request to Principal Funds,

• using our website, or

• calling us, if you have telephone privileges on the account.

<u>Exchanges from Money Market Fund</u>

Class A shares of Money Market Fund may be exchanged into:

• Class A shares of other Funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If Money Market Fund shares were acquired by direct purchase, a sales charge will be imposed on the exchange into other Class A shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If Money Market Fund shares were acquired by (1) exchange from other Funds, (2) conversion of Class B shares, or (3) reinvestment of dividends earned on Class A shares that were acquired through exchange, no sales charge will be imposed on the exchange into other Class A shares.

• Class C shares of other Funds - subject to the applicable CDSC.

An exchange from the Money Market Fund will be subject to a discretionary liquidity fee to the extent that a liquidity fee is in place at the time of the exchange.

<u>Automatic Exchange Election</u>

This election authorizes an exchange from one Fund of Principal Funds to another Fund of Principal Funds on a monthly, quarterly, semi-annual, or annual basis. You can set up an automatic exchange by:

• completing the Automatic Exchange Election section of the application,

• calling us if telephone privileges apply to the account from which the exchange is to be made,

• sending us your written instructions, or

• completing an Automatic Exchange Election form.

Your automatic exchange continues until:

• you instruct us to stop (by calling us if telephone privileges apply to the account or sending us your written instructions) or

• your Fund account balance of the account from which shares are redeemed is zero.

You may specify the day of the exchange (if none is selected, the exchange will be made on the 15th of the month). If the selected day is not a trading day, the sale will take place on the preceding trading day (if that day falls in the month or year before your selected date, the transaction will take place on the next trading day after your selected date). If telephone privileges apply to the account, you may change the date or amount by telephoning us.

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<u>General</u>

• An exchange by any joint owner is binding on all joint owners.

• If you do not have an existing account in the Fund to which the exchange is being made, a new account is established. The new account has the same owner(s), dividend and capital gain options, and dealer of record as the account from which the shares are being exchanged.

• All exchanges are subject to the minimum investment and eligibility requirements of the Fund being acquired.

• You may acquire shares of a Fund only if its shares are legally offered in your state of residence.

When money is exchanged or transferred from one account registration or tax identification number to another, the account holder is relinquishing his or her rights to the money. Therefore, exchanges and transfers can only be accepted by telephone if the exchange (transfer) is between:

• accounts with identical ownership,

• an account with a single owner to one with joint ownership if the owner of the single owner account is also an owner of the account with joint ownership,

• a single owner to a Uniform Transfers to Minors Act ("UTMA") account if the owner of the single owner account is also the custodian on the UTMA account, or

• a single or jointly owned account to an IRA account to fund the yearly IRA contribution of the owner (or one of the owners in the case of a jointly owned account).

The exchange is treated as a sale of shares for federal (and state) income tax purposes and may result in a capital gain or loss.

Fund shares used to fund an employee benefit plan may be exchanged only for shares of other Funds available to the employee benefit plan. Such an exchange must be made by following the procedures provided in the employee benefit plan and the written service agreement.

**Institutional Class and Classes R-3, R-5, and R-6 Shares**

A shareholder, which may include a beneficial owner of shares held in nominee name or a participant in a participant-directed employee benefit plan, may exchange Fund shares under certain circumstances. In addition to any restrictions an intermediary (which may include, without limitation, an employee retirement plan or other employee benefit plan, plan administrator, plan record keeper, or managed account provider) imposes, Fund shares may be exchanged, without charge, for shares of the same share class of any other Fund of the Principal Funds, provided that:

• the shareholder has not exchanged shares of the Fund within 30 days preceding the exchange, unless the shareholder is exchanging into the Money Market Fund,

• the share class of such other Fund is available through the intermediary,

• the share class of such other Fund is available in the shareholder's state of residence, and

• with respect to shares purchased through an intermediary that is willing and able to impose the 30-day exchange or repurchase restriction described below, the shareholder has not exchanged shares of the Fund within 30 days preceding the exchange, unless the shareholder is exchanging into the Money Market Fund.

With respect to shares purchased through an intermediary that is willing and able to impose a 30-day exchange or repurchase restriction, an order to purchase shares of any Fund, except shares of the Money Market Fund, will be rejected if the shareholder redeemed shares from that Fund within the preceding 30-day period. The 30-day exchange or purchase restriction does not apply to exchanges or purchases made on a scheduled basis such as scheduled periodic portfolio rebalancing transactions or to transactions by managers of funds of funds in shares of the underlying Funds.

If Fund shares are purchased through an intermediary that is unable or unwilling to impose the 30-day exchange or repurchase restriction described above, Fund management may waive this restriction based on:

• exchange and repurchase limitations that the intermediary is able to impose if, in management's judgment, such limitations are reasonably likely to prevent excessive trading in Fund shares; or

• the implementation of other transaction monitoring management believes is reasonably likely to identify and prevent excessive trading in Fund shares.

The Funds' transfer agent employs transaction monitoring that management believes is reasonably likely to identify and prevent excessive trading in Fund shares. The 30-day exchange or repurchase restriction described above is not

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imposed with respect to shares held directly with the Funds' transfer agent. However, such shares may be purchased through an intermediary that imposes such an exchange or repurchase restriction.

Shares of the Government Money Market Fund are not available for exchanges.

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**DIVIDENDS AND DISTRIBUTIONS**

Dividends are based on estimates of income, expenses, and shareholder activity for the Fund. Actual income, expenses, and shareholder activity may differ from estimates; consequently, differences, if any, will be included in the calculation of subsequent dividends. Each Fund pays its net investment income to record date shareholders. The payment schedule is as follows:

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| | | | | |
|:---|:---|:---|:---|:---|
| **Fund/Portfolio** | **Daily** | **Monthly** | **Quarterly** <br>**(March, June, September, and December)** | **Yearly** <br>**(in December)** |
| California Municipal | X |  |  |  |
| Core Fixed Income | X |  |  |  |
| Core Plus Bond |  | X |  |  |
| Diversified Income |  | X |  |  |
| Diversified International |  |  |  | X |
| Equity Income |  |  | X |  |
| Finisterre Emerging Markets Total Return Bond  |  | X |  |  |
| Global Emerging Markets |  |  |  | X |
| Global Real Estate Securities |  |  |  | X |
| Government & High Quality Bond | X |  |  |  |
| Government Money Market | X |  |  |  |
| High Yield | X |  |  |  |
| Inflation Protection |  |  |  | X |
| International Equity |  |  |  | X |
| LargeCap Growth I |  |  |  | X |
| LargeCap S&P 500 Index |  |  |  | X |
| LargeCap Value III |  |  |  | X |
| MidCap |  |  |  | X |
| MidCap S&P 400 Index |  |  |  | X |
| MidCap Value I |  |  |  | X |
| Money Market | X |  |  |  |
| Overseas |  |  |  | X |
| Principal Capital Appreciation |  |  |  | X |
| Principal LifeTime 2015, 2020, 2025, 2030, 2035,<br>2040, 2045, 2050, 2055, 2060, 2065, 2070 |  |  |  | X |
| Principal LifeTime Hybrid 2015, 2020, 2025, 2030, 2035,<br>2040, 2045, 2050, 2055, 2060, 2065, 2070 |  |  |  | X |
| Principal LifeTime Hybrid Income |  |  |  | X |
| Principal LifeTime Strategic Income |  |  |  | X |
| Real Estate Securities |  |  | X |  |
| SAM Balanced |  |  | X |  |
| SAM Conservative Balanced |  |  | X |  |
| SAM Conservative Growth |  |  |  | X |
| SAM Flexible Income |  | X |  |  |
| SAM Strategic Growth |  |  |  | X |
| Short-Term Income | X |  |  |  |
| SmallCap |  |  |  | X |
| SmallCap Growth I |  |  |  | X |
| SmallCap S&P 600 Index |  |  |  | X |
| SmallCap Value II |  |  |  | X |
| Tax-Exempt Bond | X |  |  |  |

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For more details on the payment schedule, go to: www.principal.com/tax-center.

Daily dividend funds declare dividends of daily net investments income each day their shares are priced. Daily funds distribute their accumulated declared dividends monthly. You may ask to have your dividends paid to you in cash. If you do not request cash payment, your dividend will be applied to purchase additional shares of the Fund monthly.

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Net realized capital gains, if any, are distributed annually in December. Payments are made to shareholders of record on the business day before the payable date. Capital gains may be taxable at different rates, depending on the length of time that the Fund holds its assets. If deemed necessary by the Board and management to comply with regulatory requirements or if in the best interest of shareholders, dividend and capital distributions may be paid at other times during the year.

The Government Money Market and Money Market Funds do not seek to realize any capital gains or losses. If capital gains or losses were to occur, they could result in an increase or decrease in dividends.

Dividend and capital gains distributions will be reinvested, without a sales charge, in shares of the Fund from which the distribution is paid; however, you may authorize (on your application or at a later time) the distribution to be:

• invested in shares of another of the Principal Funds without a sales charge (distributions of a Fund may be directed only to one receiving Fund); or

• paid in cash, if the amount is $10 or more.

Generally, for federal income tax purposes, Fund distributions are taxable as ordinary income, except that any distributions of long-term capital gains will be taxed as such, regardless of how long Fund shares have been held. Special tax rules apply to Fund distributions to Individual Retirement Accounts and other retirement plans. A tax advisor should be consulted to determine the suitability of the Fund as an investment by such a plan and the tax treatment of distributions by the Fund. A tax advisor can also provide information on the potential impact of possible foreign, state, and local taxes. A Fund's investments in foreign securities may be subject to foreign withholding taxes. In that case, the Fund's yield on those securities would be decreased.

To the extent that distributions the Fund pays are derived from a source other than net income (such as a return of capital), you will receive a notice disclosing the source of such distributions. Furthermore, such notice will be posted monthly on our website at www.principal.com/tax-center. You may request a copy of all such notices, free of charge, by telephoning 1-800-222-5852. The amounts and sources of distributions included in such notices are estimates only and you should not rely upon them for purposes of reporting income taxes. The Fund will send shareholders a Form 1099-DIV for the calendar year that will tell shareholders how to report these distributions for federal income tax purposes.

A Fund's payment of income dividends and capital gains has the effect of reducing the share price by the amount of the payment. Distributions from a Fund, whether received in cash or reinvested in additional shares, may be subject to federal (and state) income tax. For these reasons, buying shares of a Fund shortly before it makes a distribution may be disadvantageous to you.

**FREQUENT PURCHASES AND REDEMPTIONS**

The Funds are not designed for, and do not knowingly accommodate, frequent purchases and redemptions of Fund shares. If you intend to trade frequently and/or use market timing investment strategies, you should not purchase these Funds.

Frequent purchases and redemptions pose a risk to the Funds because they may:

• &nbsp;&nbsp;&nbsp;&nbsp;Disrupt the management of the Funds by:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ forcing the Funds to hold short-term (liquid) assets rather than investing for long-term growth, which results in lost investment opportunities for the Funds; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ causing unplanned portfolio turnover;

• Hurt the portfolio performance of the Funds; and

• Increase expenses of the Funds due to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;increased broker-dealer commissions and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;•&nbsp;&nbsp;&nbsp;&nbsp;increased recordkeeping and related costs.

Certain Funds may be at greater risk of harm due to frequent purchases and redemptions. For example, those Funds that invest in foreign securities may appeal to investors attempting to take advantage of time-zone arbitrage. The Funds have adopted procedures to "fair value" foreign securities owned by the Funds each day to discourage these market timing transactions in shares of the Funds.

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The Board has also adopted policies and procedures with respect to frequent purchases and redemptions of shares of the Funds. The Funds monitor shareholder trading activity to identify and take action against abuses. When we do identify abusive trading, we will apply our policies and procedures in a fair and uniform manner. While our policies and procedures are designed to identify and protect against abusive trading practices, there can be no certainty that we will identify and prevent abusive trading in all instances. If we are not able to identify such excessive trading practices, the Funds and their shareholders may be harmed. The harm of undetected excessive trading in shares of the underlying funds in which the funds of funds invest could flow through to the funds of funds as they would for any fund shareholder. If we, or a Fund, deem abusive trading practices to be occurring, we will take action that may include, but is not limited to:

• Rejecting exchange instructions from the shareholder or other person authorized by the shareholder to direct exchanges;

• Restricting submission of exchange requests by, for example, allowing exchange requests to be submitted by 1<sup>st</sup> class U.S. mail only and disallowing requests made by facsimile, overnight courier, telephone or via the internet;

• Limiting the number of exchanges during a year; and

• Taking such other action as directed by the Fund.

We expect the Government Money Market Fund to be used by shareholders for short-term investing and by certain selected accounts utilizing the Fund as a sweep vehicle. Therefore, reasonably frequent purchases and redemptions of Fund shares by shareholders do not present risks for other shareholders of the Fund, and the policies and procedures adopted by the Board of the Fund as applicable to other Funds are generally not applicable with respect to frequent purchases and redemptions of Fund shares.

The Funds have reserved the right to accept or reject, without prior written notice, any exchange requests. In some instances, an exchange may be completed before a determination of abusive trading. In those instances, we will reverse the exchange and return the account holdings to the positions held before the exchange. We will give the shareholder written notice in this instance. Purchases and redemptions of Fund shares by ReFlow under the program are generally not considered excessive short-term trading under the Funds' Excessive Trading Policy.

<u>Institutional Class and Classes R-3, R-5, and R-6 Shares</u>

In addition to taking any of the foregoing actions, if we, or a Fund, deem abusive trading practices to be occurring, we may require a holding period of a minimum of 30 days before permitting exchanges among the Funds where there is evidence of at least one round-trip exchange (exchange or redemption of shares that were purchased within 30 days of the exchange/redemption).

The Funds have adopted an exchange frequency restriction for these classes, described above in "Exchange of Fund Shares" to limit excessive trading in fund shares.

**TAX CONSIDERATIONS**

It is a policy of each Fund to make distributions of substantially all of its respective investment income and any net realized capital gains. Shareholders are responsible for federal income tax (and any other taxes, including state and local income taxes, if applicable) on dividends and capital gains distributions whether such dividends or distributions are paid in cash or are reinvested in additional shares. Special tax rules apply to distributions from IRAs and other retirement accounts. You should consult a tax advisor to determine the suitability of the Fund as an investment by such a plan and the tax treatment of Fund distributions.

Generally, dividends paid by the Funds from interest, dividends, or net short-term capital gains will be taxed as ordinary income. Distributions properly designated by the Fund as deriving from net gains on securities held for more than one year are taxable as such (generally at a 15% tax rate for individuals and taxable trusts, some individuals and taxable trusts will be subject to a 20% tax rate), regardless of how long you have held your shares. Distributions of investment income properly designated by the Fund as derived from "qualified dividend income" will be taxed at the rates applicable to long-term capital gains. Some high-income individuals and taxable trusts will be subject to a Medicare 3.8% tax on unearned net investment income.

A return of capital is a non-dividend distribution that is not paid out of the earnings and profits of the Fund. A return of capital distribution is generally not taxed until your investment in the Fund has been recovered. A return of capital reduces your cost basis in the Fund, which may increase your tax liability upon the sale of your Fund shares or upon subsequent distributions in respect of your investment in the Fund.

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<u>Applicable only to Real Estate Securities Fund:</u>

Occasionally, the Real Estate Securities Fund may pay a distribution classified as a return of capital. A return of capital is a non-dividend distribution that is not paid out of the earnings and profits of the Fund. As an example, the cash flow of a REIT that owns properties may exceed its taxable income because of non-cash expenses, such as property depreciation. The REIT, and in turn the Fund, may distribute this excess cash to shareholders. This distribution is classified as a return of capital. A return of capital distribution is generally not taxed until your investment in the Fund has been recovered. A return of capital reduces your cost basis in the Fund which may increase your tax liability upon the sale of your Fund shares or upon subsequent distributions in respect of your investment in the Fund. Any return of capital distributions in excess of your cost basis will be treated as capital gains.

Because of tax law requirements, you must provide the Fund with an accurate and certified taxpayer identification number (for individuals, generally a Social Security number) to avoid "back-up" withholding, which is imposed at a rate of 24%. The Fund is required, in certain cases, to withhold and remit to the U.S. Treasury 24% of ordinary income dividends and capital gain dividends, and the proceeds of redemption of shares, paid to any shareholder who has provided either an incorrect tax identification number or no number at all, who is subject to backup withholding by the Internal Revenue Service for failure to report the receipt of interest or dividend income properly, or who has failed to certify to the Fund that it is not subject to backup withholding or that it is a corporation or other "exempt recipient."

A shareholder recognizes gain or loss on the sale or redemption of shares of the Fund in an amount equal to the difference between the proceeds of the sales or redemption and the shareholder's adjusted tax basis in the shares. All or a portion of any loss so recognized may be disallowed if the shareholder purchases other shares of the Fund within 30 days before or after the sale or redemption. In general, any gain or loss arising from (or treated as arising from) the sale or redemption of shares of the Fund is considered capital gain or loss (long-term capital gain or loss if the shares were held for longer than one year). However, any capital loss arising from the sales or redemption of shares held for six months or less is disallowed to the extent of the amount of exempt-interest dividends received on such shares and (to the extent not disallowed) is treated as a long-term capital loss to the extent of the amount of capital gain dividends received on such shares. Capital losses in any year are deductible only to the extent of capital gains plus, in the case of a non-corporate taxpayer, $3,000 of ordinary income under current rules.

If a shareholder incurs a sales charge in acquiring shares of the Fund, disposes of such shares less than 91 days after they are acquired, and subsequently acquires shares of the Fund or another fund at a reduced sales charge pursuant to a right to reinvest at such reduced sales charge acquired in connection with the acquisition of the shares disposed of, then the sales charge on the shares disposed of (to the extent of the reduction in the sales charge on the shares subsequently acquired) shall not be taken into account in determining gain or loss on the shares disposed of but shall be treated as incurred on the acquisition of the shares subsequently acquired.

Any gain resulting from the redemption or exchange of your shares will generally also be subject to tax. For shares acquired after January 1, 2012, you will need to select a cost basis method to be used to calculate your reported gains and losses prior to or at the time of any redemption or exchange. If you do not select a method, the Funds' default method of average cost will be applied to the transactions. The cost basis method used on your account could significantly affect your taxes due and should be carefully considered. You should consult your tax advisor for more information on your own tax situation, including possible foreign, state, and local taxes.

Investments by a Fund in certain debt instruments or derivatives may cause the Fund to recognize taxable income in excess of the cash generated by such instruments. As a result, the Fund could be required at times to liquidate other investments to satisfy its distribution requirements under the Internal Revenue Code. The Fund's use of derivatives will also affect the amount, timing, and character of the Fund's distributions.

Under U.S. Treasury Regulations, non-corporate Fund shareholders meeting certain holding period requirements may be able to deduct up to 20% of qualified REIT dividends passed through and reported to them by the Fund.

Early in each calendar year, each Fund will notify you of the amount and tax status of distributions paid to you for the preceding year.

A dividend or distribution made after the purchase of shares of a Fund by a shareholder, although in effect a return of capital to that shareholder, would be taxable to that shareholder as described above, subject to a holding period requirement for dividends designated as qualified dividend income.

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In addition, the Funds have elected and intend to qualify and be eligible to be treated each year as regulated investment companies ("RICs") under the Internal Revenue Code of 1986, as amended (the "Code"). The Funds must satisfy certain diversification and qualifying income tests under the Code in order to qualify as RICs. If a Fund were to fail to qualify and be eligible to be treated as a RIC, the Fund would be subject to corporate-level taxation, thereby reducing the return on a shareholder's investment. In addition, a Fund could be required to recognize unrealized gains, pay taxes, and make distributions (which could be subject to interest charges) before requalifying for taxation as a RIC.

The information contained in this Prospectus is not a complete description of the federal, state, local, or foreign tax consequences of investing in the Funds. You should consult your tax advisor before investing in the Funds.

**Funds Investing in Securities Generating Tax-Exempt Income**

Distributions designated as "exempt-interest dividends" by a Fund investing in securities generating tax-exempt income are generally not subject to federal income tax. However, if you receive Social Security or railroad retirement benefits, you should consult your tax advisor to determine what effect, if any, an investment in such Funds may have on the federal taxation of your benefits. Some Funds may invest in "AMT-subject bonds," which are municipal obligations issued to finance certain "private activities," such as bonds used to finance airports, housing projects, student loan programs, and water and sewer projects. Interest on AMT-subject bonds is an item of tax preference for purposes of the federal individual alternative minimum tax ("AMT"). A portion of such Funds' distributions may, therefore, be subject to federal income taxes or to the federal individual alternative minimum tax. Some Funds may invest a portion of their assets in securities that generate income that is not exempt from federal (or state and local) income tax. Income exempt from federal tax may be subject to state and local income tax. In addition, any capital gains distributed by such Funds will be taxable as described in this section. A portion of the dividends paid by such Funds may be exempt from California State personal income tax, but not from California State franchise tax or California State corporate income tax. Corporate taxpayers should consult their tax advisor concerning the California state tax treatment of investments in such Funds.

**CHOOSING A SHARE CLASS AND THE COSTS OF INVESTING**

Before you invest, you should understand the characteristics of each share class so you can be sure to choose the class that is right for you. Fund and share class selections must be made at the time of purchase.

Classes differ regarding the costs associated with buying, redeeming, and holding shares. Which class is best for you depends upon:

• the dollar amount you are investing,

• the amount of time you plan to hold the investment,

• any plans to make additional investments in the Principal Funds, and

• eligibility to purchase the class.

The following sections describe the fees and expenses you may pay if you invest in a Fund. You may pay both one-time fees and ongoing fees. Fees and expenses are important because they lower your earnings. Before investing, you should be sure you understand the nature of different costs. Your Financial Professional can help you with this process and can help you choose the share class and Fund or Funds that are appropriate for you based upon your investment objective, risk tolerance, and other factors. Financial Professionals may receive different compensation depending upon which class of shares you purchase.

**Fees and Expenses of the Funds**

<u>Classes A, C, and J Shares</u>

These share classes may include a front-end sales charge and/or contingent deferred sales charge. There is no sales charge on shares of the Funds purchased with reinvested dividends or other distributions. You may obtain more information about sales charge reductions and waivers from your Financial Professional.

In some cases, the initial sales charge or contingent deferred sales charge may be waived or reduced. Appendix B to this Prospectus, titled "Intermediary-Specific Sales Charge Waivers and Reductions," contains information about intermediary-specific sales charge waivers and reductions that will be available if you purchase Fund shares through those intermediaries. The Prospectus discusses the initial sales charge or contingent deferred sales charge waivers or reductions that will be available if you purchase Fund shares directly from the Fund or through another intermediary not listed on Appendix B.

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In all instances, to receive a waiver or reduction in the initial sales charge or contingent deferred sales charge, you or your Financial Professional must let the Fund know at the time you purchase or redeem shares that you qualify for such a waiver or reduction. It may be necessary for you to provide information and records, such as account statements, to determine your eligibility. If you or your Financial Professional do not let the Fund know that you are eligible for a waiver or reduction, you may not receive a sales charge discount to which you are otherwise entitled.

<u>Class C Shares</u>

Class C shares may not be suitable for large investments. Due to the higher expenses associated with Class C shares, it may be more advantageous for investors currently purchasing, intending to purchase, or with existing assets in amounts that may qualify for a reduced sales charge on Class A shares, including through Rights of Accumulation and/or Statement of Intent, to purchase Class A shares. Class C shares have higher annual expenses than Class A shares because they are subject to higher distribution fees.

The Fund seeks to prevent investments in Class C shares by shareholders with at least $1 million of investments in Principal Funds eligible for inclusion pursuant to Rights of Accumulation. If you are making an initial purchase of Principal Funds of $1,000,000 or more and have selected Class C shares, the purchase will be of Class A shares of the Fund(s) you have selected. If you are making subsequent purchases into your existing Principal Funds Class C share accounts and the combined value of the subsequent investment and your existing Classes A, C, and J share accounts combined for Rights of Accumulation purposes exceeds $1,000,000, the subsequent investment will be applied to purchase Class A shares of the Fund(s) you have selected.

<u>Institutional Class and Classes R-3, R-5, and R-6 Shares</u>

Fund shares are sold without a front-end sales charge and do not have a contingent deferred sales charge. There is no sales charge on Fund shares purchased with reinvested dividends or other distributions.

However, if you purchase Institutional Class or Class R-6 shares through certain programs offered by certain financial intermediaries, you may be required to pay a commission and/or other forms of compensation to the broker, or to your Financial Professional or other financial intermediary. Shares of each Fund are usually available in other share classes that have different fees and expenses.

**One-Time Fee - Initial Sales Charge**

<u>Class A Shares</u>

The offering price for Class A shares is the NAV next calculated after receipt of an investor's order in proper form by the Fund or its servicing agent, plus any applicable initial sales charge as shown in the table below. The right-hand column in the table indicates what portion of the sales charge is paid to Financial Professionals and their brokerage firms ("dealers") for selling Class A shares.

**Note:&nbsp;&nbsp;&nbsp;&nbsp;**Because of rounding in the calculation of the offering price, the actual maximum front-end sales charge paid by an investor may be higher or lower than the percentages noted.

For more information regarding compensation paid to dealers, see "Distribution Plans and Intermediary Compensation."

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| | | | | |
|:---|:---|:---|:---|:---|
| **Fund(s): California Municipal, Tax-Exempt Bond** | **Fund(s): California Municipal, Tax-Exempt Bond** | **Fund(s): California Municipal, Tax-Exempt Bond** | **Fund(s): California Municipal, Tax-Exempt Bond** | **Fund(s): California Municipal, Tax-Exempt Bond** |
| | | **Class A Sales Charge as % of:** | **Class A Sales Charge as % of:** | |
| |<br>**Amount of Purchase** | **Offering Price** | **Amount Invested** | **Dealer Allowance as %**<br>**of Offering Price** |
|  | Less than $100,000 | 3.75% | 3.90% | 3.00% |
|  | $100,000 but less than $250,000 | 2.75% | 2.83% | 2.25% |
|  | $250,000 or more | 0.00% | 0.00% | 0.00%\* |
| \* | The Distributor may pay authorized dealers commissions on purchases of Class A shares over $250,000 calculated as follows: 1.00% on purchases between $250,000 and $4,999,999, 0.75% on purchases between $5 million and $9,999,999, 0.50% on purchases between $10 million and 49,999,999, and 0.25% on purchases of $50 million or more. The commission rate is determined based on the cumulative investments over the life of the account combined with the investments in existing Classes A, C, and J shares. | The Distributor may pay authorized dealers commissions on purchases of Class A shares over $250,000 calculated as follows: 1.00% on purchases between $250,000 and $4,999,999, 0.75% on purchases between $5 million and $9,999,999, 0.50% on purchases between $10 million and 49,999,999, and 0.25% on purchases of $50 million or more. The commission rate is determined based on the cumulative investments over the life of the account combined with the investments in existing Classes A, C, and J shares. | The Distributor may pay authorized dealers commissions on purchases of Class A shares over $250,000 calculated as follows: 1.00% on purchases between $250,000 and $4,999,999, 0.75% on purchases between $5 million and $9,999,999, 0.50% on purchases between $10 million and 49,999,999, and 0.25% on purchases of $50 million or more. The commission rate is determined based on the cumulative investments over the life of the account combined with the investments in existing Classes A, C, and J shares. | The Distributor may pay authorized dealers commissions on purchases of Class A shares over $250,000 calculated as follows: 1.00% on purchases between $250,000 and $4,999,999, 0.75% on purchases between $5 million and $9,999,999, 0.50% on purchases between $10 million and 49,999,999, and 0.25% on purchases of $50 million or more. The commission rate is determined based on the cumulative investments over the life of the account combined with the investments in existing Classes A, C, and J shares. |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Fund(s): Core Fixed Income, Government & High Quality Bond** | **Fund(s): Core Fixed Income, Government & High Quality Bond** | **Fund(s): Core Fixed Income, Government & High Quality Bond** | **Fund(s): Core Fixed Income, Government & High Quality Bond** | **Fund(s): Core Fixed Income, Government & High Quality Bond** |
| | | **Class A Sales Charge as % of:** | **Class A Sales Charge as % of:** | |
| |<br>**Amount of Purchase** | **Offering Price** | **Amount Invested** | **Dealer Allowance as %**<br>**of Offering Price** |
|  | Less than $100,000 | 2.25% | 2.30% | 2.00% |
|  | $100,000 but less than $250,000 | 1.75% | 1.78% | 1.50% |
|  | $250,000 but less than $500,000 | 1.25% | 1.27% | 1.00% |
|  | $500,000 or more | 0.00% | 0.00% | 0.00%\* |
| \* | The Distributor may pay authorized dealers commissions on purchases of Class A shares over $500,000 calculated as follows: 1.00% on purchases between $500,000 and $4,999,999, 0.50% on purchases between $5 million and $49,999,999, and 0.25% on purchases of $50 million or more. The commission rate is determined based on the cumulative investments over the life of the account combined with the investments in existing Classes A, C, and J shares. | The Distributor may pay authorized dealers commissions on purchases of Class A shares over $500,000 calculated as follows: 1.00% on purchases between $500,000 and $4,999,999, 0.50% on purchases between $5 million and $49,999,999, and 0.25% on purchases of $50 million or more. The commission rate is determined based on the cumulative investments over the life of the account combined with the investments in existing Classes A, C, and J shares. | The Distributor may pay authorized dealers commissions on purchases of Class A shares over $500,000 calculated as follows: 1.00% on purchases between $500,000 and $4,999,999, 0.50% on purchases between $5 million and $49,999,999, and 0.25% on purchases of $50 million or more. The commission rate is determined based on the cumulative investments over the life of the account combined with the investments in existing Classes A, C, and J shares. | The Distributor may pay authorized dealers commissions on purchases of Class A shares over $500,000 calculated as follows: 1.00% on purchases between $500,000 and $4,999,999, 0.50% on purchases between $5 million and $49,999,999, and 0.25% on purchases of $50 million or more. The commission rate is determined based on the cumulative investments over the life of the account combined with the investments in existing Classes A, C, and J shares. |

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| | | | | |
|:---|:---|:---|:---|:---|
| &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;**Fund(s)/Portfolio(s): Core Plus Bond, Diversified Income, High Yield, Principal LifeTime 2020,** <br>**Principal LifeTime 2030, Principal LifeTime Strategic Income, SAM Flexible Income** | &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;**Fund(s)/Portfolio(s): Core Plus Bond, Diversified Income, High Yield, Principal LifeTime 2020,** <br>**Principal LifeTime 2030, Principal LifeTime Strategic Income, SAM Flexible Income** | &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;**Fund(s)/Portfolio(s): Core Plus Bond, Diversified Income, High Yield, Principal LifeTime 2020,** <br>**Principal LifeTime 2030, Principal LifeTime Strategic Income, SAM Flexible Income** | &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;**Fund(s)/Portfolio(s): Core Plus Bond, Diversified Income, High Yield, Principal LifeTime 2020,** <br>**Principal LifeTime 2030, Principal LifeTime Strategic Income, SAM Flexible Income** | &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;**Fund(s)/Portfolio(s): Core Plus Bond, Diversified Income, High Yield, Principal LifeTime 2020,** <br>**Principal LifeTime 2030, Principal LifeTime Strategic Income, SAM Flexible Income** |
| | | **Class A Sales Charge as % of:** | **Class A Sales Charge as % of:** | |
| |<br>**Amount of Purchase** | **Offering Price** | **Amount Invested** | **Dealer Allowance as %**<br>**of Offering Price** |
|  | Less than $100,000 | 3.75% | 3.90% | 3.00% |
|  | $100,000 but less than $250,000 | 2.75% | 2.83% | 2.25% |
|  | $250,000 but less than $500,000 | 1.50% | 1.52% | 1.00% |
|  | $500,000 or more | 0.00% | 0.00% | 0.00%\* |
| \* | The Distributor may pay authorized dealers commissions on purchases of Class A shares over $500,000 calculated as follows: 1.00% on purchases between $500,000 and $4,999,999, 0.50% on purchases between $5 million and $49,999,999, and 0.25% on purchases of $50 million or more. The commission rate is determined based on the cumulative investments over the life of the account combined with the investments in existing Classes A, C, and J shares. | The Distributor may pay authorized dealers commissions on purchases of Class A shares over $500,000 calculated as follows: 1.00% on purchases between $500,000 and $4,999,999, 0.50% on purchases between $5 million and $49,999,999, and 0.25% on purchases of $50 million or more. The commission rate is determined based on the cumulative investments over the life of the account combined with the investments in existing Classes A, C, and J shares. | The Distributor may pay authorized dealers commissions on purchases of Class A shares over $500,000 calculated as follows: 1.00% on purchases between $500,000 and $4,999,999, 0.50% on purchases between $5 million and $49,999,999, and 0.25% on purchases of $50 million or more. The commission rate is determined based on the cumulative investments over the life of the account combined with the investments in existing Classes A, C, and J shares. | The Distributor may pay authorized dealers commissions on purchases of Class A shares over $500,000 calculated as follows: 1.00% on purchases between $500,000 and $4,999,999, 0.50% on purchases between $5 million and $49,999,999, and 0.25% on purchases of $50 million or more. The commission rate is determined based on the cumulative investments over the life of the account combined with the investments in existing Classes A, C, and J shares. |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Fund(s): Short-Term Income** | **Fund(s): Short-Term Income** | **Fund(s): Short-Term Income** | **Fund(s): Short-Term Income** | **Fund(s): Short-Term Income** |
| | | **Class A Sales Charge as % of:** | **Class A Sales Charge as % of:** | |
| |<br>**Amount of Purchase** | **Offering Price** | **Amount Invested** | **Dealer Allowance as %**<br>**of Offering Price** |
|  | Less than $100,000 | 2.25% | 2.30% | 2.00% |
|  | $100,000 but less than $250,000 | 1.75% | 1.78% | 1.50% |
|  | $250,000 or more | 0.00% | 0.00% | 0.00%\* |
| \* | The Distributor may pay authorized dealers commissions on purchases of Class A shares over $250,000 calculated as follows: 1.00% on purchases between $250,000 and $4,999,999, 0.50% on purchases between $5 million and 49,999,999, and 0.25% on purchases of $50 million or more. The commission rate is determined based on the cumulative investments over the life of the account combined with the investments in existing Classes A, C, and J shares. | The Distributor may pay authorized dealers commissions on purchases of Class A shares over $250,000 calculated as follows: 1.00% on purchases between $250,000 and $4,999,999, 0.50% on purchases between $5 million and 49,999,999, and 0.25% on purchases of $50 million or more. The commission rate is determined based on the cumulative investments over the life of the account combined with the investments in existing Classes A, C, and J shares. | The Distributor may pay authorized dealers commissions on purchases of Class A shares over $250,000 calculated as follows: 1.00% on purchases between $250,000 and $4,999,999, 0.50% on purchases between $5 million and 49,999,999, and 0.25% on purchases of $50 million or more. The commission rate is determined based on the cumulative investments over the life of the account combined with the investments in existing Classes A, C, and J shares. | The Distributor may pay authorized dealers commissions on purchases of Class A shares over $250,000 calculated as follows: 1.00% on purchases between $250,000 and $4,999,999, 0.50% on purchases between $5 million and 49,999,999, and 0.25% on purchases of $50 million or more. The commission rate is determined based on the cumulative investments over the life of the account combined with the investments in existing Classes A, C, and J shares. |

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| | | | |
|:---|:---|:---|:---|
| **Fund(s): LargeCap S&P 500 Index** | **Fund(s): LargeCap S&P 500 Index** | **Fund(s): LargeCap S&P 500 Index** | **Fund(s): LargeCap S&P 500 Index** |
| | **Class A Sales Charge as % of:** | **Class A Sales Charge as % of:** | |
|<br>**Amount of Purchase** | **Offering Price** | **Amount Invested** | **Dealer Allowance as %**<br>**of Offering Price** |
| Less than $50,000 | 1.50% | 1.52% | 1.25% |
| $50,000 but less than $100,000 | 1.25% | 1.27% | 1.00% |
| $100,000 but less than $250,000 | 1.00% | 1.01% | 0.75% |
| $250,000 but less than $500,000 | 0.75% | 0.76% | 0.50% |
| $500,000 but less than $1,000,000 | 0.50% | 0.50% | 0.25% |
| $1,000,000 or more | 0.00% | 0.00% | 0.25% |

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| | | | | |
|:---|:---|:---|:---|:---|
| **All other Funds/Portfolios (except Money Market Fund, for which there is no Class A sales charge)** | **All other Funds/Portfolios (except Money Market Fund, for which there is no Class A sales charge)** | **All other Funds/Portfolios (except Money Market Fund, for which there is no Class A sales charge)** | **All other Funds/Portfolios (except Money Market Fund, for which there is no Class A sales charge)** | **All other Funds/Portfolios (except Money Market Fund, for which there is no Class A sales charge)** |
| | | **Class A Sales Charge as % of:** | **Class A Sales Charge as % of:** | |
| |<br>**Amount of Purchase** | **Offering Price** | **Amount Invested** | **Dealer Allowance as %**<br>**of Offering Price** |
|  | Less than $50,000 | 5.50% | 5.82% | 4.75% |
|  | $50,000 but less than $100,000 | 4.75% | 4.99% | 4.00% |
|  | $100,000 but less than $250,000 | 3.75% | 3.90% | 3.00% |
|  | $250,000 but less than $500,000 | 3.00% | 3.09% | 2.50% |
|  | $500,000 but less than $1,000,000 | 2.00% | 2.04% | 1.75% |
|  | $1,000,000 or more | 0.00% | 0.00% | 0.00%\* |
| \* | The Distributor may pay authorized dealers commissions on purchases of Class A shares over $1 million calculated as follows: 1.00% on purchases between $1,000,000 and $4,999,999, 0.50% on purchases between $5 million and $49,999,999, and 0.25% on purchases of $50 million or more. The commission rate is determined based on the cumulative investments over the life of the account combined with the investments in existing Classes A, C, and J shares. | The Distributor may pay authorized dealers commissions on purchases of Class A shares over $1 million calculated as follows: 1.00% on purchases between $1,000,000 and $4,999,999, 0.50% on purchases between $5 million and $49,999,999, and 0.25% on purchases of $50 million or more. The commission rate is determined based on the cumulative investments over the life of the account combined with the investments in existing Classes A, C, and J shares. | The Distributor may pay authorized dealers commissions on purchases of Class A shares over $1 million calculated as follows: 1.00% on purchases between $1,000,000 and $4,999,999, 0.50% on purchases between $5 million and $49,999,999, and 0.25% on purchases of $50 million or more. The commission rate is determined based on the cumulative investments over the life of the account combined with the investments in existing Classes A, C, and J shares. | The Distributor may pay authorized dealers commissions on purchases of Class A shares over $1 million calculated as follows: 1.00% on purchases between $1,000,000 and $4,999,999, 0.50% on purchases between $5 million and $49,999,999, and 0.25% on purchases of $50 million or more. The commission rate is determined based on the cumulative investments over the life of the account combined with the investments in existing Classes A, C, and J shares. |

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*<u>Initial Sales Charge Waiver or Reduction</u>*

Class A shares of the Funds may be purchased without a sales charge or at a reduced sales charge. The availability of certain sales charge waivers and reductions will depend on whether you purchase your shares directly from the Fund or through a financial intermediary. Intermediaries may have different policies and procedures regarding the availability of initial (front-end) sales charge waivers or reductions. **Such intermediary-specific sales charge variations are described in Appendix B to this prospectus, titled "Intermediary-Specific Sales Charge Waivers and Reductions." If you purchase Fund shares through an intermediary listed on Appendix B, you will be eligible to the receive only the intermediary's applicable waivers and reductions described on Appendix B. If you purchase Fund shares directly from the Fund or through an intermediary not listed on Appendix B, you will be eligible to receive only the following initial sales charge waivers and reductions.** In all instances, it is your responsibility to notify the Fund or your financial intermediary at the time of purchase of any relationship or other facts qualifying you for sales charge waivers or reductions.

*<u>Initial Sales Charge Waiver - For Purchases of Fund Shares From the Fund or Through Intermediaries Not Listed on Appendix B</u>*

• No initial sales charge will apply to purchases of Fund shares if the purchase is of sufficient size as disclosed in the preceding "Class A Sales Charges" table.

• You may reinvest the Funds' Class A share redemption proceeds without a sales charge within 90 days of the redemption, if you previously paid a sales charge. Shares invested directly within the Class A Money Market Fund are not eligible for this waiver; however, shares in the Money Market Fund that were obtained by exchange of another Fund that imposed an initial sales charge are eligible.

• A Fund's Class A shares may be purchased without an initial sales charge by the following individuals, groups, and/or entities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any employee or registered representative (and their immediate family members and employees) of an authorized broker-dealer or company that makes available shares of a Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• clients investing in Class A shares through a "wrap account" or investment product offered through broker-dealers, registered investment advisors, and other financial institutions under which clients may pay a fee to the broker-dealer, registered investment advisor, or financial institution;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• any investor who buys Class A shares through an omnibus account held by financial intermediaries, such as a bank, broker-dealer, or other financial institution, and that does not accept or charge the initial sales charge;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• financial intermediaries who offer shares to self-directed investment brokerage accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• retirement plans or benefit plans, or participants in such plans, where the plan's investments in the Fund are part of an omnibus account. For clarification, such plans do not include individual retirement arrangements under IRC Section 408, such as Simplified Employee Pensions (SEP), SIMPLE IRAs or other IRAs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• shareholders who acquired Class A shares of Principal Capital Appreciation Fund through that fund's acquisition of Class J shares of the LargeCap Blend Fund II.

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• The following two bullet points are only applicable to intermediaries that are affiliated with Principal Financial Group, Inc. A Fund's Class A shares may be purchased without an initial sales charge by the following individuals, groups, and/or entities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Premier Credit Union when the shares are owned directly with Principal Funds; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• non-ERISA clients of Principal Global Investors LLC.

*<u>Initial Sales Charge Reduction - For Purchases of Fund Shares From the Fund or Through Intermediaries Not Listed on Appendix B</u>*

(3)The maximum sales charge that applies to purchases of Class A shares by qualified plans administered by Expertplan, Inc. that were previously converted from B share plans is the sales charge that applies to purchases of at least $250,000 but less than $500,000 as described in the sales charge tables; the regular sales charge applies to purchases of $500,000 or more in such accounts and to all purchases of the Diversified Income Fund, LargeCap S&P 500 Index Fund, and Short-Term Income Fund shares.

(4)The maximum sales charge for all purchases made in an account that is included in a SIMPLE IRA, SEP, SAR-SEP, non-qualified deferred compensation, or payroll deduction plan established before March 1, 2002 with Principal Management Corporation as the Funds' transfer agent, is the sales charge that applies to purchases of at least $100,000 but less than $250,000 as described in the sales charge tables; the regular sales charge applies to purchases of $250,000 or more in such accounts and to all purchases of the Diversified Income Fund, LargeCap S&P 500 Index Fund, and Short-Term Income Fund shares. The reduced sales charge applies to purchases made by or on behalf of participants to such plans who became participants on or before July 28, 2007.

<u>Class C Shares</u>

Purchases of Class C shares are not subject to a front-end sales load. The offering price for Class C shares is the NAV next calculated after receipt of an investor's order in proper form by the Fund or its servicing agent, with no initial sales charge. The Distributor currently pays authorized dealers commissions of up to 1.00% of the amount invested in Class C shares.

<u>Institutional Class and Classes J, R-3, R-5, and R-6 Shares</u>

Purchases of these classes of shares are not subject to a front-end sales load. The offering price for such shares is the NAV next calculated after receipt of an investor's order in proper form by the Fund or its servicing agent, with no initial sales charge.

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**One-Time Fee - Contingent Deferred Sales Charge ("CDSC")**

If you sell (redeem) shares and the CDSC is imposed, it will reduce the amount of sales proceeds.

The CDSC is based on the lesser of the market value at the time of redemption or the initial purchase price of the shares sold. The CDSC does not apply to shares purchased with reinvested dividends or other distributions. The CDSC is not charged on exchanges. However, the original purchase date of the shares from which an exchange is made determines if the newly acquired shares are subject to the CDSC when they are sold.

If you sell some but not all of the shares in your account, the shares not subject to a CDSC will be sold first. Other shares will be sold in the order purchased (first in, first out). The CDSC does not apply to shares redeemed according to a systematic withdrawal plan limited to no more than 1.00% per month (measured cumulatively for non-monthly plans) of the value of the Fund account at the time, and beginning on the date, the systematic withdrawal plan is established.

<u>Class A Shares</u>

Class A shares purchased in amounts that are of sufficient size to qualify for a 0.00% sales charge, as disclosed in the "Class A Sales Charges" table, are generally subject to a CDSC of 1.00% (0.25% for the LargeCap S&P 500 Index Fund) if the shares are redeemed during the first 18 months after purchase (12 months after purchase for the California Municipal, Short-Term Income, and Tax-Exempt Bond Funds), unless the dealer, at its discretion, has waived the commission. The Distributor may pay authorized dealers commissions up to 1.00% of the price of such purchases.

There is no CDSC on Class A shares of the Money Market Fund that are directly purchased by the shareholder. However, for Class A Money Market Fund shares that are obtained through an exchange of shares from another Fund, the CDSC originally applicable to the purchase of such Fund's shares will continue to apply.

The CDSC generally will not be imposed on redemptions of shares purchased through an omnibus account with certain financial intermediaries, such as a bank or other financial institution, where no sales charge payments were advanced for purchases made through these entities.

<u>Class C Shares</u>

Each initial and subsequent purchase of Class C shares is subject to a CDSC of 1.00% for a period of 12 months from the date of purchase. Shares will be redeemed first from shares purchased through reinvested dividends and capital gain distributions, which are not subject to the CDSC, and then in order of purchase. Within 90 days after the sale of Class C shares, you may reinvest any amount of the sale proceeds in Class C shares and those shares purchased will not be subject to the 12-month CDSC.

<u>Class J Shares</u>

If you sell your Class J shares within 18 months of purchase, a CDSC may be imposed on the shares sold. The CDSC, if any, is determined by multiplying by 1.00% the lesser of the market value at the time of redemption or the initial purchase price of the shares sold. Within 90 days after the sale of Class J shares, you may reinvest the amount of the sale proceeds into any Principal Funds Class J shares Fund; shares purchased by redemption proceeds are not subject to the eighteen-month CDSC.

<u>Institutional Class and Classes R-3, R-5, and R-6 Shares</u>

These share classes are not subject to a CDSC.

*<u>CDSC Waiver</u>*

The CDSC may be waived on Classes A, C, and J shares of the Funds; waivers vary depending on how shares are purchased. Certain waivers and reductions apply when shares are purchased directly from the Fund; others apply when shares are purchased through an intermediary. Intermediaries may have different policies and procedures regarding the availability of waivers or reductions of the CDSC. **Such intermediary-specific sales charge variations are described in Appendix B to this Prospectus, titled "Intermediary-Specific Sales Charge Waivers and Reductions." If you purchase Fund shares through an intermediary listed on Appendix B, you will be eligible to the receive only the intermediary's applicable waivers and reductions described on Appendix B. If you purchase Fund shares directly from the Fund or through an intermediary not listed on Appendix B, you will be eligible to receive only the following CDSC waivers and reductions.** In all instances, it is your responsibility to notify the Fund or your financial intermediary at the time of redemption of any facts qualifying you for sales charge waivers or reductions.

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*<u>CDSC Waiver - For Purchases of Fund Shares From the Fund or Through Intermediaries Not Listed on Appendix B</u>*

For Classes A, C, and J shares, the CDSC is waived on shares:

• redeemed within 90 days after an account is re-registered due to a shareholder's death;

• redeemed to pay surrender fees;

• redeemed to pay retirement plan fees;

• redeemed involuntarily from accounts with small balances;

• redeemed due to the shareholder's disability (as defined by the Internal Revenue Code) provided the shares were purchased before the disability;

• redeemed from retirement plans to satisfy minimum distribution rules under the Internal Revenue Code;

• redeemed from a retirement plan to assure the plan complies with the Internal Revenue Code;

• redeemed from retirement plans qualified under Section 401(a) of the Internal Revenue Code due to the plan participant's death, disability, retirement, or separation from service after attaining age 55;

• redeemed from retirement plans to satisfy excess contribution rules under the Internal Revenue Code; or

• redeemed using a systematic withdrawal plan (up to 1% per month (measured cumulatively with respect to non-monthly plans) of the value of the fund account at the time, and beginning on the date, the systematic withdrawal plan begins). (The free withdrawal privilege not used in a calendar year is not added to the free withdrawal privileges for any following year.)

For Class J shares, the CDSC also is waived on shares:

• redeemed that were purchased pursuant to the Small Amount Force Out program (SAFO); or

• of the Money Market Fund redeemed within 30 days of the initial purchase if the redemption proceeds are transferred to another Principal IRA, defined as either a fixed or variable annuity issued by Principal Life Insurance Company to fund an IRA, a Principal Bank IRA product, or a WRAP account IRA sponsored by Principal Securities, Inc.

**Ongoing Fees**

The ongoing fees are the operating expenses of a Fund, which are described in the "Annual Fund Operating Expenses" table included in the Summary for each Fund. These expenses reduce the value of each share you own. Because they are ongoing, they increase the cost of investing in the Funds.

Each fund of funds, as a shareholder in the underlying funds, bears its pro rata share of the operating expenses incurred by each underlying fund. The investment return of each fund of funds is net of the underlying funds' operating expenses.

Each Fund pays ongoing fees to PGI and others who provide services to the Fund. These fees include:

• Management Fee (all Classes) - Through the Management Agreement with the Registrant, PGI has agreed to provide investment advisory services and corporate administrative services to the Funds.

• Distribution Fee (Classes A, C, J, and R-3) - Each Fund has adopted a distribution plan under Rule 12b-1 of the 1940 Act for the foregoing classes, with the exception of the Money Market Fund, Class A. Under the plan, these classes of each Fund pay a distribution fee based on the average daily NAV of the Fund. These fees pay distribution and other expenses for the sale of Fund shares and for services provided to shareholders. Because they are ongoing fees, over time, these fees may exceed other types of sales charges.

• Other Expenses (all Classes) - A portion of certain expenses are allocated to all classes of the Funds, unless an expense is specific to a particular share class. Other expenses include, for example, interest expense, expenses related to fund investments, certain expenses related to regulatory requirements, and index licensing fees. Additional examples of other expenses include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Transfer Agent Fee (all Classes) - Principal Shareholder Services, Inc. ("PSS") has entered into a Transfer Agency Agreement with the Registrant under which PSS provides transfer agent services to these classes. For Class J shares, these services are currently provided at a rate that includes a profit; for Classes A, C, Institutional, and R-6 shares, these services are currently provided at cost. The Fund does not pay for these services for Classes R-3 and R-5 shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Certain Operating Expenses (Institutional Class and Classes A, C, J, and R-6) — Expenses of registering and qualifying shares for sale, the cost of producing and distributing reports and prospectuses to shareholders of these classes, the cost of shareholder meetings held solely for shareholders of these classes, and other operating expenses of the Fund.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Service Fee (Classes R-3 and R-5) — PGI has entered into a Service Agreement with the Registrant under which PGI is required to provide certain personal services to shareholders (plan sponsors) and beneficial owners (plan members), such as responding to plan sponsor and plan member inquiries.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Administrative Services Fee (Classes R-3 and R-5) — PGI has entered into an Administrative Services Agreement with the Registrant under which PGI is required to provide shareholder and administrative services for retirement plans and other beneficial owners of Fund shares.

• Acquired Fund Fees and Expenses (all Classes) - Fees and expenses charged by other investment companies in which a Fund invests a portion of its assets.

**DISTRIBUTION PLANS AND INTERMEDIARY COMPENSATION**

**Distribution and/or Service (12b-1) Fees**

Principal Funds Distributor, Inc. ("PFD" or the "Distributor") is the distributor for the shares of Principal Funds, Inc. PFD is an affiliate of Principal Life Insurance Company, a subsidiary of Principal Financial Group, Inc., and a member of Principal<sup>®</sup>.

The Funds have adopted a distribution plan pursuant to Rule 12b-1 under the 1940 Act (the "12b-1 Plan") for each of the Classes A, C, J, and R-3 shares of the Funds. Under the 12b-1 Plan, except as noted below, each Fund makes payments from its assets attributable to the particular share class to the Funds' Distributor for distribution-related expenses and for providing services to shareholders of that share class. Payments under the 12b-1 Plan are made by the Funds to the Distributor pursuant to the 12b-1 Plan regardless of the expenses incurred by the Distributor. When the Distributor receives Rule 12b-1 fees, it may pay some or all of them to financial intermediaries whose customers are shareholders of the Funds for sales support services and for providing services to shareholders of that share class. Financial intermediaries may include, among others, broker-dealers, registered investment advisors, banks, trust companies, pension plan consultants, retirement plan administrators, and insurance companies. These financial intermediaries include Principal Securities, Inc., a broker-dealer affiliated with PGI. Because Rule 12b-1 fees are paid out of Fund assets and are ongoing fees, over time they will increase the cost of your investment in the Funds and may cost you more than other types of sales charges.

The maximum annual Rule 12b-1 fee for distribution-related expenses and/or for providing services to shareholders under each 12b-1 Plan (as a percentage of average daily net assets) is:

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| | |
|:---|:---|
| **Share Class** | **Maximum Annualized Rate 12b-1 Fee** |
| A<sup>(1)</sup> | 0.25%<sup>(2)</sup> |
| C | 1.00% |
| J | 0.15% |
| R-3 | 0.25% |

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<sup>(1)</sup> &nbsp;&nbsp;&nbsp;&nbsp;Class A shares of the Money Market Fund are not subject to Rule 12b-1 fees.

<sup>(2) &nbsp;&nbsp;&nbsp;&nbsp;</sup>The maximum annualized Rule 12b-1 fee for Class A shares of the Government & High Quality Bond, LargeCap S&P 500 Index, and Short-Term Income Funds is 0.15%.

The Distributor generally uses Rule 12b-1 fees to finance any activity that is primarily intended to result in the sale of shares and for providing services to shareholders of the share class, and the activities vary depending on the share class. In addition to shareholder services, examples of such sales or distribution-related expenses include, but are not limited to:

• Compensation to salespeople and selected dealers, including ongoing commission payments.

• Printing of prospectuses and statements of additional information and reports for other-than-existing shareholders, and preparing and conducting sales seminars.

Examples of services to shareholders include furnishing information as to the status of shareholder accounts, responding to telephone and written inquiries of shareholders, and assisting shareholders with tax information.

Payments under the 12b-1 Plans will not automatically terminate for Funds that are closed to new investors or to additional purchases by existing shareholders. The Board will determine whether to terminate, modify, or leave unchanged the 12b-1 Plans when the Board directs the implementation of the closure of a Fund.

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<u>Classes A and C Shares</u>

Generally, to receive 12b-1 fees from the Distributor, dealers or other intermediaries must be the dealer of record for shares with average daily net assets of at least $100,000. Generally, Class A shares must be held for three months before these fees are paid. In the case of Class C shares, generally these fees are not paid until such shares have been held for twelve months.

<u>Class J Shares</u>

Effective December 31, 2015, the Distributor has contractually agreed to limit the distribution fees attributable to Class J normally payable by the Money Market Fund. This waiver is in place through February 28, 2026 and will reduce the Money Market Fund's distribution fees by 0.15%. It is expected that the fee waiver will continue through the period disclosed; however, Principal Funds, Inc. and the Distributor, the parties to the agreement, may agree to terminate the fee waiver prior to the end of the period.

**Commissions, Finder's Fees, and Ongoing Payments** 

See "Choosing a Share Class and The Costs of Investing" for more details.

<u>Class A Shares</u>

All or a portion of the initial sales charge that you pay may be paid by the Distributor to intermediaries selling Class A shares. The Distributor may pay these intermediaries a commission of up to 1.00% on purchases of $1,000,000 or more (or $250,000 or $500,000 or more depending on the Fund purchased), which are not subject to initial sales charges.

<u>Classes A, J, and R-3 Shares</u> 

Additionally, the Distributor generally makes ongoing 12b-1 fee payments to your intermediary at a rate that varies by class, as noted above under "Distribution and/or Service (12b-1) Fees."

<u>Class C Shares</u>

The Distributor will pay, at the time of your purchase, a commission to your intermediary equal to 1.00% of your investment. Additionally, the Distributor generally makes ongoing 12b-1 fee payments to your intermediary as noted above under "Distribution and/or Service (12b-1) Fees."

**Additional Payments to Intermediaries**

Shares of the Funds are sold primarily through intermediaries, such as brokers, dealers, investment advisors, banks, trust companies, pension plan consultants, retirement plan administrators, and insurance companies.

<u>Classes A, C, and J Shares</u>

In addition to payments pursuant to 12b-1 plans, sales charges, commissions, and finder's fees, including compensation for referrals, PGI or its affiliates enter into agreements with some intermediaries pursuant to which the intermediaries receive payments for providing services relating to Fund shares. Examples of such services are administrative, networking, recordkeeping, sub-transfer agency, and shareholder services. In some situations, the Fund will reimburse PGI or its affiliates for making such payments; in others, the Fund may make such additional payments directly to intermediaries.

PGI or its affiliates also pay, without reimbursement from the Fund, compensation from their own resources to certain intermediaries that support the distribution of shares of the Fund or provide services to Fund shareholders.

Such additional payments vary, but generally do not exceed: (a) 0.25% of the current year's sales of Fund shares by that intermediary and/or (b) 0.25% of average net asset value of Fund shares held by clients of such intermediary.

<u>Institutional Class and Classes R-3, R-5, and R-6 Shares</u>

In addition to payments pursuant to applicable 12b-1 plans, PGI or its affiliates enter into agreements with some intermediaries pursuant to which the intermediaries receive payments for providing services relating to Fund shares. Examples of such services are administrative, networking, recordkeeping, sub-transfer agency, and/or shareholder services. For Classes R-3 and R-5 shares, such compensation is generally paid out of the Service Fees and Administrative Services Fees that are disclosed in this Prospectus as Other Expenses. For Institutional Class shares, in some situations the Fund will reimburse PGI or its affiliates for making such payments; in others, the Fund may make such payments directly to the intermediaries.

PGI or its affiliates also pay, without reimbursement from the Fund, compensation from their own resources to certain intermediaries that support the distribution of shares of the Fund or provide services to Fund shareholders.

For Institutional Class shares, such payments vary, but generally do not exceed: (a) 0.10% of the current year's sales of Fund shares by that intermediary or (b) 0.10% of the average net asset value of Fund shares held by clients of such intermediary.

------

Principal Life Insurance Company is one such intermediary that provides services relating to Fund shares held in employee benefit plans, and it is typically paid all of the Service Fees and Administrative Services Fees pertaining to such plans, and it also is paid other compensation described in this section as payable to intermediaries.

The Distributor and its affiliates do not pay compensation to intermediaries (other than to affiliates of the Distributor) for distribution services or other services to Fund shareholders for Class R-6 shares. For more information, see the SAI.

<u>Institutional Class and Classes A, C, J, R-3, R-5, and R-6 Shares</u>

The intermediary may pay to its Financial Professionals some or all of the amounts the Distributor and its affiliates pay to the intermediary. The amounts paid to intermediaries vary by share class and by Fund.

In some cases, the Distributor and its affiliates will provide payments or reimbursements in connection with the costs of conferences, educational seminars, training, and marketing efforts related to the Funds. Such activities may be sponsored by intermediaries or the Distributor. The costs associated with such activities may include travel, lodging, entertainment, and meals. In some cases, the Distributor will also provide payment or reimbursement for expenses associated with transactions ("ticket") charges and general marketing expenses.

For more information, see the SAI.

The payments described in this Prospectus may create a conflict of interest by influencing your Financial Professional or your intermediary to recommend the Fund over another investment, or to recommend one share class of the Fund over another share class. Ask your Financial Professional or visit your intermediary's website for more information about the total amounts paid to them by PGI and its affiliates, and by sponsors of other investment companies your Financial Professional may recommend to you.

Your intermediary may charge you additional fees other than those disclosed in this Prospectus. Ask your Financial Professional about any fees and commissions they charge.

**FUND ACCOUNT INFORMATION**

**Statements**

You will receive quarterly statements for the Funds you own, or if you purchase through a third-party intermediary, on a periodic basis established by such intermediary. Such statements provide the number and value of shares you own, transactions during the period, dividends declared or paid, and other information. The year-end statement includes information for all transactions that took place during the year. Please review your statement as soon as you receive it. Keep your statements, as you may need them for tax reporting purposes.

Generally, each time you buy, sell, or exchange shares in Principal Funds, you will receive a confirmation shortly thereafter. It summarizes all the key information - what you bought or sold, the amount of the transaction, and other important information.

Certain purchases and sales are only included on your quarterly statement. These include accounts:

• when the only activity during the quarter are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ purchases of shares from reinvested dividends and/or capital gains,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ purchases under an Automatic Investment Plan,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ sales under a Systematic Withdrawal Plan,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ purchases or sales under an Automatic Exchange Election, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ conversion of Class C shares into Class A shares

• used to fund certain individual retirement or individual pension plans; or

• established under a payroll deduction plan.

If you need information about your account(s) at other times, you may call us or access your account on the internet.

**Orders Placed by Intermediaries**

Principal Funds may have an agreement with your intermediary, such as a broker-dealer, third-party administrator, or trust company, that permits the intermediary to receive orders on behalf of the Fund (other than the Government Money Market Fund) until 3:00 p.m. Central Time and on behalf of the Government Money Market Fund until 4:00 p.m. Central Time. The agreement may include authorization for your intermediary to designate other intermediaries ("sub-designees") to receive orders on behalf of the Fund on the same terms that apply to the intermediary. In such cases, if your intermediary or a sub-designee receives your order in correct form by the required time, transmits it to the Fund, and pays for it in accordance with the agreement, the Fund will price the order at the next NAV per share it computes after your intermediary or sub-designee received your order.

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The time at which the Fund prices orders and the time until which the Fund or your intermediary or sub-designee will accept orders may change in the case of an emergency or if the NYSE closes at a time other than 3:00 p.m. Central Time.

**Transactions through Financial Institutions/Professionals**

Financial institutions and dealers may charge their customers a processing or service fee in connection with the purchase or redemption of Fund shares. The amount and applicability of such a fee is determined and disclosed to its customers by each individual financial institution or dealer. Processing or service fees typically are fixed, nominal dollar amounts and are in addition to the sales and other charges described in this Prospectus and the SAI.

Your financial institution or dealer will provide you with specific information about any processing or service fees you will be charged.

**Telephone and Internet Instructions**

The Funds reserve the right to refuse telephone and/or internet instructions. You are liable for a loss resulting from a fraudulent telephone or internet instruction that we reasonably believe is genuine. We use reasonable procedures to assure instructions are genuine. If the procedures are not followed, we may be liable for loss due to unauthorized or fraudulent transactions. The procedures include: recording all telephone instructions, requiring the use of a password (Personal Identification Number) for internet instructions, requesting personal identification information, and sending written confirmation to the shareholder's address of record.

If you elect telephone privileges, instructions regarding your account(s) may be given to us via the telephone or internet. Your instructions:

• may be given by calling us;

• may be given via our website for certain transactions (for security purposes you need a username and password to use any of the internet services, including viewing your account information online. If you do not have a username or password, you may obtain one at our website); or

• may be given to your Financial Professional (a person employed by or affiliated with broker/dealer firms) who will in turn contact us with your instructions.

Instructions received from one owner are binding on all owners. In the case of an account owned by a corporation or trust, instructions received from an authorized person are binding on the corporation/trust unless we have a written notification requiring that more than one authorized person execute written instructions.

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**Signature Guarantees**

Certain transactions require that your signature be guaranteed. A signature guarantee may help protect your account against fraud. If required, the signature(s) must be guaranteed by a commercial bank, trust company, credit union, savings and loan, national securities exchange member, or brokerage firm that participates in a Medallion program recognized by the Securities Transfer Association. A signature guaranteed by a notary public or savings bank is not acceptable. We reserve the right to require a signature guarantee on any transaction.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Signature guarantees are required in any of the following circumstances:** | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| if you sell more than $100,000 (in the aggregate) from the Funds | X | X | X |  |  |  |  |
| if you sell more than $500,000 (in the aggregate) from the Funds |  |  |  | X | X | X | X |
| if you sell more than $10,000,000 if you have the proceeds sent electronically to a previously authorized U.S. bank account |  |  |  | X |  |  |  |
| if a sales proceeds check is payable to a party other than the account shareholder(s) |  |  |  | X | X | X | X |
| if a sales proceeds check is payable to a party other than the account shareholder(s) or Principal Life, Principal Bank, a retirement plan trustee or custodian that has agreed in writing to accept a transfer of assets from the Fund, or Principal Securities, Inc. payable through Pershing | X | X | X |  |  |  |  |
| to change ownership of an account | X | X | X | X | X | X | X |
| to add telephone transaction services and/or wire or ACH redemption privileges to an existing account if there is not a common owner between the bank account and mutual fund account | X | X | X | X | X | X | X |
| to change bank account information designated under an existing telephone withdrawal plan if there is not a common owner between the bank account and mutual fund account | X | X | X | X | X | X | X |
| to wire or ACH to a shareholder's U.S. bank account not previously authorized or when the request does not include a voided check or deposit slip indicating a common owner between the bank account and mutual fund account | X | X | X | X | X | X | X |
| to exchange or transfer among accounts with different ownership | X | X | X | X | X | X | X |
| to have a sales proceeds check mailed to an address other than the address on the account or to the address on the account if it has been changed within the preceding 15 days | X | X | X | X | X | X | X |

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**Reservation of Rights**

Principal Funds reserves the right to amend or terminate the special plans described in this Prospectus. Shareholders will be notified of any such action to the extent required by law.

Such plans include, for example, automatic investment, systematic withdrawal, waiver of Fund minimums for certain accounts, and waiver or reduction of the sales charge or contingent deferred sales charge for certain purchasers.

**Classes A, C, and J Shares - Minimum Account Balance**

Each Fund has a minimum required account balance of $1,000. The Fund reserves the right to redeem all shares in your account if the value of your account falls below $1,000. The Fund will mail the redemption proceeds to you. An involuntary redemption of a small account will not be triggered by market conditions alone. The Fund will notify you before involuntarily redeeming your account. You will have 30 days to make an additional investment of an amount that brings your account up to the required minimum. Each Fund reserves the right to increase the required minimum.

**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 Prospectus and Annual and Semi-Annual Reports will be mailed. In addition, your account information may be included with other householded accounts on the same quarterly and annual statements. The consolidation of these mailings, called householding, benefits Principal Funds and its shareholders by reduced printing and mailing expenses. If you prefer to receive multiple copies of these materials, you may write or call Principal Funds. Householding will be stopped within 30 days after we receive your request.

**Multiple Translations**

This Prospectus may be translated into other languages. In the event of any inconsistencies or ambiguity as to the meaning of any word or phrase in a translation, the English text will prevail.

**Financial Statements**

Shareholders will receive annual financial statements for the Funds, audited by the Funds' independent registered public accounting firm. Shareholders will also receive semi-annual financial statements that are unaudited.

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**APPENDIX A – DESCRIPTION OF BOND RATINGS**

<u>Moody's Investors Service, Inc. Rating Definitions:</u>

Long-Term Obligation Ratings

Ratings assigned on Moody's global long-term obligation rating scales are forward-looking opinions of the relative credit risk of financial obligations issued by non-financial corporates, financial institutions, structured finance vehicles, project finance vehicles, and public sector entities. Long-term ratings are assigned to issuers or obligations with an original maturity of one year or more and reflect both on the likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in the event of default or impairment.<sup>1</sup>

<sup>1</sup> *For certain structured finance, preferred stock and hybrid securities in which payment default events are either not defined or do not match investor's expectations for timely payment, the ratings reflect the likelihood of impairment and the expected financial loss in the event of impairment.*

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| | |
|:---|:---|
| Aaa: | Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk. |
| Aa: | Obligations rated Aa are judged to be of high quality and are subject to very low credit risk. |
| A: | Obligations rated A are considered upper-medium grade and are subject to low credit risk. |
| Baa: | Obligations rated Baa are subject to moderate credit risk. They are considered medium-grade and as such may possess certain speculative characteristics. |
| Ba: | Obligations rated Ba are judged to be speculative and are subject to substantial credit risk. |
| B: | Obligations rated B are considered speculative and are subject to high credit risk. |
| Caa: | Obligations rated Caa are judged to be speculative of poor standing and are subject to very high credit risk. |
| Ca: | Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest. |
| C: | Obligations rated C are the lowest rated class of bonds and are typically in default, with little prospect for recovery of principal or interest. |

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| | |
|:---|:---|
| **NOTE:** | Moody's appends numerical modifiers, 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category, the modifier 2 indicates a mid-range ranking, and the modifier 3 indicates a ranking in the lower end of that generic rating category. Additionally, a "(hyb)" indicator is appended to all ratings of hybrid securities issued by banks, issuers, financial companies, and securities firms.\* |

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**\***By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments, which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to contractually allowable write-downs of principal that could result in impairment. Together the hybrid indicator, the long-term obligation rating assigned to a hybrid security is an expression of the relative credit risk associated with that security.

SHORT-TERM NOTES: Short-term ratings are assigned to obligations with an original maturity of thirteen months or less and reflect both on the likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in the event of default. Moody's employs the following three designations, all judged to be investment grade, to indicate the relative repayment ability of rated issuers:

Issuers rated Prime-1 (or related supporting institutions) have a superior ability to repay short-term debt obligations.

Issuers rated Prime-2 (or related supporting institutions) have a strong ability to repay short-term debt obligations.

Issuers rated Prime-3 (or related supporting institutions) have an acceptable ability to repay short-term obligations.

Issuers rated Not Prime do not fall within any of the Prime rating categories.

US MUNICIPAL SHORT-TERM DEBT: The Municipal Investment Grade (MIG) scale is used to rate US municipal bonds of up to three years maturity. MIG ratings are divided into three levels - MIG 1 through MIG 3 - while speculative grade short-term obligations are designated SG.

MIG 1 denotes superior credit quality, afforded excellent protection from established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for refinancing.

MIG 2 denotes strong credit quality with ample margins of protection, although not as large as in the preceding group.

MIG 3 notes are of acceptable credit quality. Liquidity and cash-flow protection may be narrow and market access for refinancing is likely to be less well-established.

SG denotes speculative-grade credit quality and may lack sufficient margins of protection.

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<u>Description of S&P Global Ratings' Credit Rating Definitions:</u>

S&P Global's credit rating, both long-term and short-term, is a forward-looking opinion of the creditworthiness of an obligor with respect to a specific obligation. This assessment takes into consideration the creditworthiness of guarantors, insurers, or other forms of credit enhancement on the obligation.

The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment as to market price or suitability for a particular investor.

The ratings are statements of opinion as of the date they are expressed furnished by the issuer or obtained by S&P Global Ratings from other sources S&P Global Ratings considers reliable. S&P Global Ratings does not perform an audit in connection with any rating and may, on occasion, rely on unaudited financial information. The ratings may be changed, suspended, or withdrawn as a result of changes in, or unavailability of, such information, or for other circumstances.

The ratings are based, in varying degrees, on the following considerations:

• Likelihood of payment - capacity and willingness of the obligor to meet its financial commitment on an obligation in accordance with the terms of the obligation;

• Nature of and provisions of the financial obligation;

• Protection afforded by, and relative position of, the financial obligation in the event of bankruptcy, reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditor's rights.

LONG-TERM CREDIT RATINGS:

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| | |
|:---|:---|
| AAA: | Obligations rated 'AAA' have the highest rating assigned by S&P Global Ratings. The obligor's capacity to meet its financial commitment on the obligation is extremely strong. |
| AA: | Obligations rated 'AA' differ from the highest-rated issues only in small degree. The obligor's capacity to meet its financial commitment on the obligation is very strong. |
| A: | Obligations rated 'A' have a strong capacity to meet financial commitment on the obligation although they are somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. |
| BBB: | Obligations rated 'BBB' exhibit adequate protection parameters; however, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to meet financial commitment on the obligation. |
| BB, B, CCC,<br>CC and C: | Obligations rated 'BB', 'B', 'CCC', 'CC', and 'C' are regarded, on balance, as having significant speculative characteristics. 'BB' indicates the lowest degree of speculation and 'C' the highest degree of speculation. While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major risk exposures to adverse conditions. |
| BB: | Obligations rated 'BB' are less vulnerable to nonpayment than other speculative issues. However it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation. |
| B: | Obligations rated 'B' are more vulnerable to nonpayment than 'BB' but the obligor currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial, or economic conditions will likely impair this capacity. |
| CCC: | Obligations rated 'CCC' are currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation. If adverse business, financial, or economic conditions occur, the obligor is not likely to have the capacity to meet its financial commitment on the obligation. |
| CC: | Obligations rated 'CC' are currently highly vulnerable to nonpayment. The 'CC' rating is used when a default has not yet occurred but S&P Global Ratings expects default to be a virtual certainty, regardless of anticipated time to default. |
| C: | The rating 'C' is highly vulnerable to nonpayment, the obligation is expected to have lower relative seniority or lower ultimate recovery compared to higher rated obligations. |
| D: | Obligations rated 'D' are in default, or in breach of an imputed promise. For non-hybrid capital instruments, the 'D' rating category is used when payments on an obligation are not made on the date due, unless S&P Global Ratings believes that such payments will be made within five business days in the absence of a stated grace period or within the earlier of the stated grace period or 30 calendar days. The rating will also be used upon filing for bankruptcy petition or the taking of similar action and where default is a virtual certainty. If an obligation is subject to a distressed exchange offer the rating is lowered to 'D'. |

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Plus (+) or Minus (-): The ratings from 'AA' to 'CCC' may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories.

NR: Indicates that a rating has not been assigned or is no longer assigned.

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SHORT-TERM CREDIT RATINGS: Ratings are graded into four categories, ranging from 'A-1' for the highest quality obligations to 'D' for the lowest.

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| | |
|:---|:---|
| A-1: | This is the highest category. The obligor's capacity to meet its financial commitment on the obligation is strong. Within this category, certain obligations are designated with a plus sign (+). This indicates that the obligor's capacity to meet its financial commitment on these obligations is extremely strong. |
| A-2: | Issues carrying this designation are somewhat more susceptible to the adverse effects of the changes in circumstances and economic conditions than obligations in higher rating categories. However, the obligor's capacity to meet its financial commitment on the obligation is satisfactory. |
| A-3: | Issues carrying this designation exhibit adequate capacity to meet their financial obligations. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet it financial commitment on the obligation. |
| B: | Issues rated 'B' are regarded as vulnerable and have significant speculative characteristics. The obligor has capacity to meet financial commitments; however, it faces major ongoing uncertainties which could lead to obligor's inadequate capacity to meet its financial obligations. |
| C: | This rating is assigned to short-term debt obligations that are currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions to meet its financial commitment on the obligation. |
| D: | This rating indicates that the issue is either in default or in breach of an imputed promise. For non-hybrid capital instruments, the 'D' rating category is used when payments on an obligation are not made on the date due, unless S&P Global Ratings believes that such payments will be made within any stated grace period. However, any stated grace period longer than five business days will be treated as five business days. The rating will also be used upon filing for bankruptcy petition or the taking of similar action and where default is a virtual certainty. If an obligation is subject to a distressed debt restructuring the rating is lowered to 'D'. |

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MUNICIPAL SHORT-TERM NOTE RATINGS: S&P Global Ratings rates U.S. municipal notes with a maturity of less than three years as follows:

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| | |
|:---|:---|
| SP-1: | A strong capacity to pay principal and interest. Issues that possess a very strong capacity to pay debt service is given a "+" designation. |
| SP-2: | A satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and economic changes over the terms of the notes. |
| SP-3: | A speculative capacity to pay principal and interest. |
| D: | Assigned upon failure to pay the note when due, completion of a distressed debt restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default on an obligation is a virtual certainty.  |

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**APPENDIX B – INTERMEDIARY-SPECIFIC SALES CHARGE WAIVERS AND REDUCTIONS**

Certain intermediaries have different policies and procedures regarding the availability of sales charge waivers and reductions, which are discussed below. In all instances, it is the purchaser's responsibility to notify the Fund or the purchaser's financial intermediary at the time of purchase of any relationship or other facts qualifying the purchaser for sales charge waivers or reductions. In order to receive a waiver or reduction offered by one intermediary or the Fund, the purchaser must purchase Fund shares from the Fund or intermediary offering the waiver or reduction. Please see the section of the prospectus entitled "CHOOSING A SHARE CLASS AND THE COSTS OF INVESTING" for more information on sales charges and waivers available for different classes.

Currently, the following intermediaries have implemented a schedule of sales charge waivers and reductions described below:

**<u>Ameriprise Financial</u>**

*<u>Front-end sales charge reductions on Class A shares purchased through Ameriprise Financial</u>*

Shareholders purchasing Class A shares of the fund through an Ameriprise Financial platform or account are eligible only for the following sales charge reductions, which may differ from those disclosed elsewhere in this prospectus or the SAI. Such shareholders can reduce their initial sales charge on the purchase of Class A shares as follows:

• Transaction size breakpoints*,* as described in this prospectus or the SAI.

• Rights of accumulation (ROA), as described in this prospectus or the SAI.

• Letter of intent, as described in this prospectus or the SAI.

*<u>Front-end sales charge waivers on Class A shares purchased through Ameriprise Financial</u>*

Shareholders purchasing Class A shares of the fund through an Ameriprise Financial platform or account are eligible only for the following sales charge waivers, which may differ from those disclosed elsewhere in this prospectus or the SAI. Such shareholders may purchase Class A shares at NAV without payment of a sales charge as follows:

• Shares purchased by employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer- sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.

• Shares purchased through reinvestment of capital gains and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the same fund family).

• Shares exchanged from Class C shares of the same fund in the month of or following the seven-year anniversary of the purchase date. To the extent that this prospectus elsewhere provides for a waiver with respect to such shares following a shorter holding period, that waiver will apply to exchanges following such shorter period. To the extent that this prospectus elsewhere provides for a waiver with respect to exchanges of Class C shares for load waived shares, that waiver will also apply to such exchanges.

• Shares purchased by employees and registered representatives of Ameriprise Financial or its affiliates and their immediate family members.

• Shares purchased by or through qualified accounts (including IRAs, Coverdell Education Savings Accounts, 401(k)s, 403(b) TSCAs subject to ERISA and defined benefit plans) that are held by a covered family member, defined as an Ameriprise Financial advisor and/or the advisor's spouse, advisor's lineal ascendant (mother, father, grandmother, grandfather, great grandmother, great grandfather), advisor's lineal descendant (son, step-son, daughter, step-daughter, grandson, granddaughter, great grandson, great granddaughter) or any spouse of a covered family member who is a lineal descendant.

• Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e. Rights of Reinstatement).

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*<u>CDSC waivers on Class A and C shares purchased through Ameriprise Financial</u>*

Fund shares purchased through an Ameriprise Financial platform or account are eligible only for the following CDSC waivers, which may differ from those disclosed elsewhere in this prospectus or the SAI:

• Redemptions due to death or disability of the shareholder.

• Shares sold as part of a systematic withdrawal plan as described in this prospectus.

• Redemptions made in connection with a return of excess contributions from an IRA account.

• Shares purchased through a Right of Reinstatement (as defined above).

• Redemptions made as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code.

**<u>Edward D. Jones & Co., L.P. ("Edward Jones")</u>**

*<u>Policies Regarding Transactions Through Edward Jones</u>*

Effective on or after August 28, 2024, the following information supersedes prior information with respect to transactions and positions held in fund shares through an Edward Jones system. Clients of Edward Jones (also referred to as "shareholders") purchasing fund shares on the Edward Jones commission and fee-based platforms are eligible only for the following sales charge discounts (also referred to as "breakpoints") and waivers, which can differ from discounts and waivers described elsewhere in the mutual fund prospectus or statement of additional information ("SAI") or through another broker-dealer. In all instances, it is the shareholder's responsibility to inform Edward Jones at the time of purchase of any relationship, holdings of Principal Funds, Inc., or other facts qualifying the purchaser for discounts or waivers. Edward Jones can ask for documentation of such circumstance. Shareholders should contact Edward Jones if they have questions regarding their eligibility for these discounts and waivers.

*<u>Breakpoints at Edward Jones</u>*

• Breakpoint pricing, otherwise known as volume pricing, at dollar thresholds as described in the prospectus.

*<u>Rights of Accumulation ("ROA") at Edward Jones</u>*

• The applicable sales charge on a purchase of Class A shares is determined by taking into account all share classes (except certain money market funds and any assets held in group retirement plans) of Principal Funds, Inc. held by the shareholder or in an account grouped by Edward Jones with other accounts for the purpose of providing certain pricing considerations ("pricing groups"). If grouping assets as a shareholder, this includes all share classes held on the Edward Jones platform and/or held on another platform. The inclusion of eligible fund family assets in the ROA calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Money market funds are included only if such shares were sold with a sales charge at the time of purchase or acquired in exchange for shares purchased with a sales charge.

• The employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or change ROA for the IRA accounts associated with the plan to a plan-level grouping as opposed to including all share classes at a shareholder or pricing group level.

• ROA is determined by calculating the higher of cost minus redemptions or market value (current shares x NAV).

*<u>Letter of Intent ("LOI") at Edward Jones</u>*

• Through a LOI, shareholders can receive the sales charge and breakpoint discounts for purchases shareholders intend to make over a 13-month period from the date Edward Jones receives the LOI. The LOI is determined by calculating the higher of cost or market value of qualifying holdings at LOI initiation in combination with the value that the shareholder intends to buy over a 13-month period to calculate the front-end sales charge and any breakpoint discounts. Each purchase the shareholder makes during that 13-month period will receive the sales charge and breakpoint discount that applies to the total amount. The inclusion of eligible fund family assets in the LOI calculation is dependent on the shareholder notifying Edward Jones of such assets at the time of calculation. Purchases made before the LOI is received by Edward Jones are not adjusted under the LOI and will not reduce the sales charge previously paid. Sales charges will be adjusted if LOI is not met.

• If the employer maintaining a SEP IRA plan and/or SIMPLE IRA plan has elected to establish or change ROA for the IRA accounts associated with the plan to a plan-level grouping, LOIs will also be at the plan-level and may only be established by the employer.

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*<u>Sales Charge Waivers at Edward Jones</u>*

Sales charges are waived for the following shareholders and in the following situations:

• Associates of Edward Jones and its affiliates and other accounts in the same pricing group (as determined by Edward Jones under its policies and procedures) as the associate. This waiver will continue for the remainder of the associate's life if the associate retires from Edward Jones in good-standing and remains in good standing pursuant to Edward Jones' policies and procedures.

• Shares purchased in an Edward Jones fee-based program.

• Shares purchased through reinvestment of capital gains distributions and dividend reinvestment.

• Shares purchased from the proceeds of redeemed shares of the same fund family so long as the following conditions are met: the proceeds are from the sale of shares within 60 days of the purchase, the sale and purchase are made from a share class that charges a front load and one of the following ("Right of Reinstatement"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ The redemption and repurchase occur in the same account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ The redemption proceeds are used to process an: IRA contribution, excess contributions, conversion, recharacterizing of contributions, or distribution, and the repurchase is done in an account within the same Edward Jones grouping for ROA.

The Right of Reinstatement excludes systematic or automatic transactions including, but not limited to, purchases made through payroll deductions, liquidations to cover account fees, and reinvestments from non-mutual fund products.

• Shares exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the discretion of Edward Jones. Edward Jones is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable sales charge as disclosed in the prospectus.

• Exchanges from Class C shares to Class A shares of the same fund, generally, in the 84th month following the anniversary of the purchase date or earlier at the discretion of Edward Jones.

*<u>Contingent Deferred Sales Charge ("CDSC") Waivers at Edward Jones</u>*

• If the shareholder purchases shares that are subject to a CDSC and those shares are redeemed before the CDSC is expired, the shareholder is responsible to pay the CDSC except in the following conditions:

• The death or disability of the shareholder.

• Systematic withdrawals with up to 10% per year of the account value.

• Return of excess contributions from an Individual Retirement Account (IRA).

• Shares redeemed as part of a required minimum distribution for IRA and retirement accounts if the redemption is taken in or after the year the shareholder reaches qualified age based on applicable IRS regulations.

• Shares redeemed to pay Edward Jones fees or costs in such cases where the transaction is initiated by Edward Jones.

• Shares exchanged in an Edward Jones fee-based program.

• Shares acquired through NAV reinstatement.

• Shares redeemed at the discretion of Edward Jones for Minimums Balances, as described below.

*<u>Other Important Information Regarding Transactions Through Edward Jones</u>*

Minimum Purchase Amounts

• Initial purchase minimum: $250

• Subsequent purchase minimum: none

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Minimum Balances

• Edward Jones has the right to redeem at its discretion fund holdings with a balance of $250 or less. The following are examples of accounts that are not included in this policy:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ A fee-based account held on an Edward Jones platform

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ A 529 account held on an Edward Jones platform

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ An account with an active systematic investment plan or LOI

Exchanging Share Classes

• At any time it deems necessary, Edward Jones has the authority to exchange at NAV a shareholder's holdings in a fund to Class A shares of the same fund.

**<u>Janney Montgomery Scott</u>**

Effective May 1, 2020, if you purchase fund shares through a Janney Montgomery Scott LLC ("Janney") brokerage account, you will be eligible for the following load waivers (front-end sales charge waivers and contingent deferred sales charge ("CDSC"), or back-end sales charge, waivers) and discounts, which may differ from those disclosed elsewhere in this fund's Prospectus or SAI.

*<u>Front-end Sales Charge\* Waivers on Class A Shares Available at Janney</u>*

• Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family).

• Shares purchased by employees and registered representatives of Janney or its affiliates and their family members as designated by Janney.

• Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within ninety (90) days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (i.e., right of reinstatement).

• Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.

• Shares acquired through a right of reinstatement.

• Class C shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant to Janney's policies and procedures.

*<u>CDSC Waivers on Class A and C Shares Available at Janney</u>*

• Shares sold upon the death or disability of the shareholder.

• Shares sold as part of a systematic withdrawal plan as described in the fund's Prospectus.

• Shares sold in connection with a return of excess contributions from an IRA account.

• Shares sold as part of a required minimum distribution for IRA and retirement accounts if the redemption is taken in or after the year the shareholder reaches their qualified age based on applicable IRS regulations.

• Shares sold to pay Janney fees but only if the transaction is initiated by Janney.

• Shares acquired through a right of reinstatement.

• Shares exchanged into the same share class of a different fund.

*<u>Front-end Sales Charge\* Discounts Available at Janney: Breakpoints, Rights of Accumulation, and/or Letters of Intent</u>*

• Breakpoints as described in the fund's Prospectus.

• Rights of accumulation ("ROA"), which entitle shareholders to breakpoint discounts, will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser's household at Janney. Eligible fund family assets not held at Janney may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.

• Letters of intent ("LOI") which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible fund family assets not held at Janney Montgomery Scott may be included in the calculation of letters of intent only if the shareholder notifies his or her financial advisor about such assets.

\*Also referred to as an "initial sales charge."

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**<u>J.P. Morgan Securities LLC</u>**

Effective September 29, 2023, if you purchase or hold fund shares through an applicable J.P. Morgan Securities LLC brokerage account, you will be eligible for the following sales charge waivers (front-end sales charge waivers and contingent deferred sales charge ("CDSC"), or back-end sales charge, waivers), share class conversion policy and discounts, which may differ from those disclosed elsewhere in this fund's prospectus or SAI.

*<u>Front-end Sales Charge Waivers on Class A Shares Available at J.P. Morgan Securities LLC</u>*

• Shares exchanged from Class C (i.e. level-load) shares that are no longer subject to a CDSC and are exchanged into Class A shares of the same fund pursuant to J.P. Morgan Securities LLC's share class exchange policy.

• Qualified employer-sponsored defined contribution and defined benefit retirement plans, nonqualified deferred compensation plans, other employee benefit plans and trusts used to fund those plans. For purposes of this provision, such plans do not include SEP IRAs, SIMPLE IRAs, SAR-SEPs or 501(c)(3) accounts.

• Shares of funds purchased through J.P. Morgan Securities LLC Self-Directed Investing accounts.

• Shares purchased through rights of reinstatement.

• Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family).

• Shares purchased by employees and registered representatives of J.P. Morgan Securities LLC or its affiliates and their spouse or financial dependent as defined by J.P. Morgan Securities LLC.

*<u>Class C to Class A Share Conversion</u>*

• A shareholder in the fund's Class C shares will have their shares converted by J.P. Morgan Securities LLC to Class A shares (or the appropriate share class) of the same fund if the shares are no longer subject to a CDSC and the conversion is consistent with J.P. Morgan Securities LLC's policies and procedures.

*<u>CDSC Waivers on Class A and C Shares Available at J.P. Morgan Securities LLC</u>*

• Shares sold upon the death or disability of the shareholder.

• Shares sold as part of a systematic withdrawal plan as described in the fund's prospectus.

• Shares purchased in connection with a return of excess contributions from an IRA account.

• Shares sold as part of a required minimum distribution for IRA and retirement accounts pursuant to the Internal Revenue Code.

• Shares acquired through a right of reinstatement.

*<u>Front-end Load Discounts Available at J.P. Morgan Securities LLC: Breakpoints, Rights of Accumulation & Letters of Intent</u>*

• Breakpoints as described in the prospectus.

• Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts as described in the fund's prospectus will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser's household at J.P. Morgan Securities LLC. Eligible fund family assets not held at J.P. Morgan Securities LLC (including 529 program holdings, where applicable) may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.

• Letters of Intent (LOI) which allow for breakpoint discounts based on anticipated purchases within a fund family, through J.P. Morgan Securities LLC, over a 13-month period of time (if applicable).

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**<u>Merrill Lynch</u>**

Purchases or sales of front-end (i.e. Class A) or level-load (i.e., Class C) mutual fund shares through a Merrill platform or account will be eligible only for the following sales load waivers (front-end, contingent deferred, or back-end waivers) and discounts, which differ from those disclosed elsewhere in this Fund's prospectus. Purchasers will have to buy mutual fund shares directly from the mutual fund company or through another intermediary to be eligible for waivers or discounts not listed below.

It is the client's responsibility to notify Merrill at the time of purchase or sale of any relationship or other facts that qualify the transaction for a waiver or discount. A Merrill representative may ask for reasonable documentation of such facts and Merrill may condition the granting of a waiver or discount on the timely receipt of such documentation.

Additional information on waivers and discounts is available in the Merrill Sales Load Waiver and Discounts Supplement (the "Merrill SLWD Supplement") and in the Mutual Fund Investing at Merrill pamphlet at ml.com/funds. Clients are encouraged to review these documents and speak with their financial advisor to determine whether a transaction is eligible for a waiver or discount.

*<u>Front-end Load Waivers Available at Merrill</u>*

• Shares of mutual funds available for purchase by employer-sponsored retirement, deferred compensation, and employee benefit plans (including health savings accounts) and trusts used to fund those plans provided the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.

• Shares purchased through a Merrill investment advisory program.

• Brokerage class shares exchanged from advisory class shares due to the holdings moving from a Merrill investment advisory program to a Merrill brokerage account.

• Shares purchased through the Merrill Edge Self-Directed platform.

• Shares purchased through the systematic reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same mutual fund in the same account.

• Shares exchanged from level-load shares to front-end load shares of the same mutual fund in accordance with the description in the Merrill SLWD Supplement.

• Shares purchased by eligible employees of Merrill or its affiliates and their family members who purchase shares in accounts within the employee's Merrill Household (as defined in the Merrill SLWD Supplement).

• Shares purchased by eligible persons associated with the fund as defined in this prospectus (e.g. the fund's officers or trustees).

• Shares purchased from the proceeds of a mutual fund redemption in front-end load shares provided (1) the repurchase is in a mutual fund within the same fund family; (2) the repurchase occurs within 90 calendar days from the redemption trade date, and (3) the redemption and purchase occur in the same account (known as Rights of Reinstatement). Automated transactions (i.e. systematic purchases and withdrawals) and purchases made after shares are automatically sold to pay Merrill's account maintenance fees are not eligible for Rights of Reinstatement.

*<u>Contingent Deferred Sales Charge ("CDSC") Waivers on Front-end, Back-end, and Level-Load Shares Available at Merrill</u>*

• Shares sold due to the client's death or disability (as defined by Internal Revenue Code Section 22e(3)).

• Shares sold pursuant to a systematic withdrawal program subject to Merrill's maximum systematic withdrawal limits as described in the Merrill SLWD Supplement.

• Shares sold due to return of excess contributions from an IRA account.

• Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the investor reaching the qualified age based on applicable IRS regulation.

• Front-end or level-load shares held in commission-based, non-taxable retirement brokerage accounts (e.g. traditional, Roth, rollover, SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans) that are transferred to fee-based accounts or platforms and exchanged for a lower cost share class of the same mutual fund.

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*<u>Front-end Load Discounts Available at Merrill: Breakpoints, Rights of Accumulation & Letters of Intent</u>*

• Breakpoint discounts, as described in this prospectus, where the sales load is at or below the maximum sales load that Merrill permits to be assessed to a front-end load purchase, as described in the Merrill SLWD Supplement.

• Rights of Accumulation (ROA), as described in the Merrill SLWD Supplement, which entitle clients to breakpoint discounts based on the aggregated holdings of mutual fund family assets held in accounts in their Merrill Household.

• Letters of Intent (LOI), which allow for breakpoint discounts on eligible new purchases based on anticipated future eligible purchases within a fund family at Merrill, in accounts within your Merrill Household, as further described in the Merrill SLWD Supplement.

**<u>Morgan Stanley Wealth Management</u>**

*<u>Initial Sales Charge Waivers on Class A Shares Available at Morgan Stanley Wealth Management</u>*

Effective July 1, 2018, if you purchase Class A Fund shares through a Morgan Stanley Wealth Management transactional brokerage account you will be eligible only for the following initial sales charge waivers, which differ from those disclosed elsewhere in this prospectus or the SAI.

• Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs, SAR-SEPs or Keogh plans.

• Morgan Stanley employee and employee-related accounts according to Morgan Stanley's account linking rules.

• Shares purchased through reinvestment of dividends and capital gains distributions when purchasing shares of the same fund.

• Shares purchased through a Morgan Stanley self-directed brokerage account.

• Class C (i.e., level-load) shares that are no longer subject to a contingent deferred sales charge and are converted to Class A shares of the same fund pursuant to Morgan Stanley Wealth Management's share class conversion program.

• Shares purchased from the proceeds of redemptions within the same fund family, provided (i) the repurchase occurs within 90 days following the redemption, (ii) the redemption and purchase occur in the same account, and (iii) redeemed shares were subject to a front-end or deferred sales charge.

**<u>Oppenheimer & Co. Inc.</u>**

Effective June 12, 2020, shareholders purchasing Fund shares through an Oppenheimer & Co. Inc. ("OPCO") platform or account are eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this Fund's prospectus or SAI.

*<u>Front-end Sales Load Waivers on Class A Shares Available at OPCO</u>*

• Employer-sponsored retirement, deferred compensation and employee benefit plans (including health savings accounts) and trusts used to fund those plans, provided that the shares are not held in a commission-based brokerage account and shares are held for the benefit of the plan.

• Shares purchased by or through a 529 Plan.

• Shares purchased through a OPCO affiliated investment advisory program.

• Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund (but not any other fund within the fund family).

• Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Restatement).

• A shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of OPCO.

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• Employees and registered representatives of OPCO or its affiliates and their family members.

• Directors or Trustees of the Fund, and employees of the Fund's investment adviser or any of its affiliates, as described in this prospectus.

*<u>CDSC Waivers on A, B and C Shares Available at OPCO</u>*

• Death or disability of the shareholder.

• Shares sold as part of a systematic withdrawal plan as described in the Fund's prospectus.

• Return of excess contributions from an IRA Account.

• Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based on applicable IRS regulations as described in the prospectus.

• Shares sold to pay OPCO fees but only if the transaction is initiated by OPCO.

• Shares acquired through a right of reinstatement.

*<u>Front-end Load Discounts Available at OPCO: Breakpoints, Rights of Accumulation & Letters of Intent</u>*

• Breakpoints as described in this prospectus.

• Rights of Accumulation (ROA) which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser's household at OPCO. Eligible fund family assets not held at OPCO may be included in the ROA calculation only if the shareholder notifies his or her financial advisor about such assets.

**<u>Raymond James</u>**

Effective March 1, 2019, shareholders purchasing fund shares through a Raymond James & Associates, Inc., Raymond James Financial Services, Inc. or each entity's affiliates ("Raymond James") platform or account, or through an introducing broker-dealer or independent registered investment adviser for which Raymond James provides trade execution, clearance, and/or custody services, will be eligible only for the following load waivers (front-end sales charge waivers and contingent deferred, or back-end, sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this fund's prospectus or SAI.

*<u>Front-end Sales Load Waivers on Class A Shares Available at Raymond James</u>*

• Shares purchased in an investment advisory program.

• Shares purchased within the same fund family through a systematic reinvestment of capital gains and dividend distributions.

• Employees and registered representatives of Raymond James or its affiliates and their family members as designated by Raymond James.

• Shares purchased from the proceeds of redemptions within the same fund family, provided (1) the repurchase occurs within 90 days following the redemption, (2) the redemption and purchase occur in the same account, and (3) redeemed shares were subject to a front-end or deferred sales load (known as Rights of Reinstatement).

• A shareholder in the Fund's Class C shares will have their shares converted at net asset value to Class A shares (or the appropriate share class) of the Fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of Raymond James.

*<u>CDSC Waivers on Classes A and C Shares Available at Raymond James</u>*

• Death or disability of the shareholder.

• Shares sold as part of a systematic withdrawal plan as described in the fund's prospectus.

• Return of excess contributions from an IRA Account.

• Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching their qualified age based on applicable IRS regulations as described in the fund's prospectus.

• Shares sold to pay Raymond James fees but only if the transaction is initiated by Raymond James.

• Shares acquired through a right of reinstatement.

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*<u>Front-end Load Discounts Available at Raymond James: Breakpoints, Rights of Accumulation, and/or Letters of Intent</u>*

• Breakpoints as described in this prospectus.

• Rights of accumulation which entitle shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of fund family assets held by accounts within the purchaser's household at Raymond James. Eligible fund family assets not held at Raymond James may be included in the calculation of rights of accumulation only if the shareholder notifies his or her financial advisor about such assets.

• Letters of intent which allow for breakpoint discounts based on anticipated purchases within a fund family, over a 13-month time period. Eligible fund family assets not held at Raymond James may be included in the calculation of letters of intent only if the shareholder notifies his or her financial advisor about such assets.

**<u>Robert W. Baird & Co.</u>**

Effective January 1, 2026, shareholders purchasing fund shares through a Robert W. Baird & Co. ("Baird") platform or account will only be eligible for the following sales charge waivers (front-end sales charge waivers and CDSC waivers) and discounts, which may differ from those disclosed elsewhere in this prospectus or the SAI.

*<u>Front-end Sales Charge Waivers on Investors A-shares Available at Baird</u>*

• Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same fund

• Shares purchased by employees and registered representatives of Baird or its affiliates and their family members as designated by Baird

• Shares purchased within 90 days following a redemption from a Principal Fund, provided (1) the redemption and purchase occur within the purchaser's Baird household and (2) the redeemed shares were subject to a front-end or deferred sales charge (known as rights of reinstatement)

• A shareholder in the Fund's Investor C Shares will have their share converted at net asset value to Investor A shares of the same fund if the shares are no longer subject to CDSC and the conversion is in line with the policies and procedures of Baird

• Employer-sponsored retirement plans or charitable accounts in a transactional brokerage account at Baird, including 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans. For purposes of this provision, employer-sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs

*<u>CDSC Waivers on Investor A and C shares Available at Baird</u>*

• Shares sold due to death or disability of the shareholder

• Shares sold as part of a systematic withdrawal plan as described in the Fund's Prospectus

• Shares bought due to returns of excess contributions from an IRA Account

• Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based on applicable Internal Revenue Service regulations as described in the Fund's prospectus

• Shares sold to pay Baird fees but only if the transaction is initiated by Baird

• Shares acquired through a right of reinstatement

*<u>Front-end Sales Charge Discounts Available at Baird: Breakpoints and/or Rights of Accumulations</u>*

• Breakpoints as described in this prospectus

• Rights of accumulations which entitles shareholders to breakpoint discounts will be automatically calculated based on the aggregated holding of Principal assets held by accounts within the purchaser's household at Baird. Eligible Principal assets not held at Baird may be included in the rights of accumulations calculation only if the shareholder notifies his or her financial advisor about such assets

• Letters of Intent (LOI) allow for breakpoint discounts based on anticipated purchases of Principal through Baird, over a 13-month period of time

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**<u>Stifel, Nicolaus & Company, Incorporated</u>**

Effective March 17, 2025, shareholders purchasing or holding Principal Funds, Inc's shares, including existing fund shareholders, through a Stifel or affiliated platform that provides trade execution, clearance, and/or custody services, will be eligible for the following sales charge load waivers (including front-end sales charge waivers and contingent deferred, or back-end, (CDSC) sales charge waivers) and discounts, which may differ from those disclosed elsewhere in this prospectus or the Fund's SAI.

*<u>Class A Shares</u>*

As described elsewhere in this prospectus, Stifel may receive compensation out of the front-end sales charge if you purchase Class A shares through Stifel.

*<u>Rights of accumulation</u>*

Rights of accumulation (ROA) that entitle shareholders to breakpoint discounts on front-end sales charges will be calculated by Stifel based on the aggregated holding of eligible assets in the Principal Funds, Inc. held by accounts within the purchaser's household at Stifel. Ineligible assets include class A Money Market Funds not assessed a sales charge. Fund Family assets not held at Stifel may be included in the calculation of ROA only if the shareholder notifies his or her financial advisor about such assets.

The employer maintaining a SEP IRA plan and/or SIMPLE IRA plan may elect to establish or change ROA for the IRA accounts associated with the plan to a plan-level grouping as opposed to including all share classes at a shareholder or pricing group level.

*<u>Front-end sales charge waivers on Class A shares available at Stifel</u>*

• Class C shares that have been held for more than seven (7) years may be converted to Class A shares or other front-end share class(es) of the same fund pursuant to Stifel's policies and procedures. To the extent that this prospectus elsewhere provides for a waiver with respect to the exchange or conversion of such shares following a shorter holding period, those provisions shall continue to apply.

• Shares purchased by employees and registered representatives of Stifel or its affiliates and their family members as designated by Stifel.

• Shares purchased in a Stifel fee-based advisory program, often referred to as a "wrap" program.

• Shares purchased through reinvestment of capital gains distributions and dividend reinvestment when purchasing shares of the same or other fund within the Principal Funds, Inc.

• Shares purchased from the proceeds of redeemed shares of Principal Funds, Inc. so long as the proceeds are from the sale of shares from an account with the same owner/beneficiary within 90 days of the purchase. For the absence of doubt, automated transactions (i.e. systematic purchases, including salary deferral transactions and withdrawals) and purchases made after shares are sold to cover Stifel Nicolaus' account maintenance fees are not eligible for rights of reinstatement.

• Shares from rollovers into Stifel from retirement plans to IRAs.

• Shares exchanged into Class A shares from another share class so long as the exchange is into the same fund and was initiated at the direction of Stifel. Stifel is responsible for any remaining CDSC due to the fund company, if applicable. Any future purchases are subject to the applicable sales charge as disclosed in this prospectus.

• Purchases of Class 529-A shares through a rollover from another 529 plan.

• Purchases of Class 529-A shares made for reinvestment of refunded amounts.

• Employer-sponsored retirement plans (e.g., 401(k) plans, 457 plans, employer-sponsored 403(b) plans, profit sharing and money purchase pension plans and defined benefit plans). For purposes of this provision, employer sponsored retirement plans do not include SEP IRAs, Simple IRAs or SAR-SEPs.

• Charitable organizations and foundations, notably 501(c)(3) organizations.

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*<u>Contingent Deferred Sales Charges Waivers on Class A and C Shares</u>*

• Death or disability of the shareholder or, in the case of 529 plans, the account beneficiary.

• Shares sold as part of a systematic withdrawal plan not to exceed 12% annually.

• Return of excess contributions from an IRA Account.

• Shares sold as part of a required minimum distribution for IRA and retirement accounts due to the shareholder reaching the qualified age based on applicable IRS regulations.

• Shares acquired through a right of reinstatement.

• Shares sold to pay Stifel fees or costs in such cases where the transaction is initiated by Stifel.

• Shares exchanged or sold in a Stifel fee-based program.

*<u>Share Class Conversions in Advisory Accounts</u>*

• Stifel reserves the right to convert shares to the lowest cost share class available at Stifel upon transfer of shares into an advisory program.

**<u>US Bancorp Investments, Inc. ("USBI")</u>**

Effective February 2021, Shareholders who purchase fund shares through a USBI platform or account or who own shares for which USBI or an affiliate is the broker-dealer of record, where the shares are held in an omnibus account at the fund, and who are invested in Class C shares will have their shares converted at NAV to Class A shares (or the appropriate share class) of the fund if the shares are no longer subject to a CDSC and the conversion is in line with the policies and procedures of USBI.

*(updated March 17, 2025)*

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**APPENDIX C – FINANCIAL HIGHLIGHTS**

The following financial highlights tables are intended to help you understand each Fund's financial performance for the periods shown. Certain information reflects returns for a single Fund share. The total returns in each table represent the rate that an investor would have earned or lost each period on an investment in the Fund (assuming reinvestment of all distributions). This information has been derived from the financial statements audited by Ernst & Young LLP, Independent Registered Public Accounting Firm, whose report, along with each Fund's financial statements, is included in Principal Funds, Inc. <u>[Annual Report to Shareholders (Part 1)](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000898745/000089874525000918/primary-document.htm)</u> (<u>[Part 2](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000898745/000089874525000919/primary-document.htm)</u>) (<u>[Part 3](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000898745/000089874525000920/primary-document.htm)</u>) for the fiscal year ended October 31, 2025, which is available upon request, and incorporated by reference into the SAI.

To request a free copy of the latest Annual or Semi-Annual report for the Funds, you may telephone 1-800-222-5852.

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![null001.jpg](ck0000898745-20260227_g64.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return Net Assets, End of Period (in thousands) Ratio of Expenses to Average Net Assets Ratio of Expenses to Average Net Assets (Excluding Interest Expense and Fees) Ratio of Net Investment Income to Average Net Assets Portfolio Turnover Rate CALIFORNIA MUNICIPAL FUND Class A shares 2025 $9.86 $0.33 ($0.02) $0.31 ($0.34) ($0.34) $9.83 3.19%(b) $335,447 0.85% 0.71%(c) 3.40% 52.2% 2024 9.30 0.30 0.56 0.86 (0.30) (0.30) 9.86 9.27 (b) 323,809 0.87 0.71 (c) 3.02 35.9 2023 9.27 0.28 0.02 0.30 (0.27) (0.27) 9.30 3.19 (b) 301,835 0.89 0.72 (c) 2.89 31.5 2022 11.02 0.25 (1.75) (1.50) (0.25) (0.25) 9.27 (13.86) (b),(d) 328,411 0.78 0.72 (c) 2.42 38.9 2021 10.85 0.24 0.17 0.41 (0.24) (0.24) 11.02 3.89 (b),(d) 471,777 0.79 0.76 (c) 2.11 13.2 Class C shares 2025 9.88 0.25 (0.02) 0.23 (0.26) (0.26) 9.85 2.34 (b) 16,019 1.67 1.53 (c) 2.57 52.2 2024 9.32 0.21 0.56 0.77 (0.21) (0.21) 9.88 8.34 (b) 20,508 1.70 1.54 (c) 2.18 35.9 2023 9.29 0.20 0.02 0.22 (0.19) (0.19) 9.32 2.32 (b) 21,229 1.73 1.56 (c) 2.05 31.5 2022 11.05 0.16 (1.76) (1.60) (0.16) (0.16) 9.29 (14.55) (b) 26,031 1.60 1.54 (c) 1.59 38.9 2021 10.87 0.15 0.18 0.33 (0.15) (0.15) 11.05 3.05 (b) 39,213 1.59 1.56 (c) 1.31 13.2 Institutional shares 2025 9.87 0.35 (0.02) 0.33 (0.36) (0.36) 9.84 3.44 293,382 0.60 (e) 0.46 (c),(e) 3.64 52.2 2024 9.30 0.32 0.57 0.89 (0.32) (0.32) 9.87 9.64 279,440 0.62 (e) 0.46 (c),(e) 3.27 35.9 2023 9.27 0.31 0.02 0.33 (0.30) (0.30) 9.30 3.46 235,290 0.63 (e) 0.46 (c),(e) 3.15 31.5 2022 11.03 0.27 (1.76) (1.49) (0.27) (0.27) 9.27 (13.65) 198,684 0.53 (e) 0.47 (c),(e) 2.68 38.9 2021 10.86 0.26 0.18 0.44 (0.27) (0.27) 11.03 4.05 217,309 0.54 (e) 0.51 (c),(e) 2.36 13.2 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Excludes interest expense and fees paid through inverse floater agreements. See "Operating Policies" in notes to financial statements. (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. 1

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Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return Net Assets, End of Period (in thousands) Ratio of Expenses to Average Net Assets Ratio of Expenses to Average Net Assets (Excluding Interest Expense and Fees) Ratio of Net Investment Income to Average Net Assets Portfolio Turnover Rate CALIFORNIA MUNICIPAL FUND Class A shares 2025 $9.86 $0.33 ($0.02) $0.31 ($0.34) ($0.34) $9.83 3.19%(b) $335,447 0.85% 0.71%(c) 3.40% 52.2% 2024 9.30 0.30 0.56 0.86 (0.30) (0.30) 9.86 9.27 (b) 323,809 0.87 0.71 (c) 3.02 35.9 2023 9.27 0.28 0.02 0.30 (0.27) (0.27) 9.30 3.19 (b) 301,835 0.89 0.72 (c) 2.89 31.5 2022 11.02 0.25 (1.75) (1.50) (0.25) (0.25) 9.27 (13.86) (b),(d) 328,411 0.78 0.72 (c) 2.42 38.9 2021 10.85 0.24 0.17 0.41 (0.24) (0.24) 11.02 3.89 (b),(d) 471,777 0.79 0.76 (c) 2.11 13.2 Class C shares 2025 9.88 0.25 (0.02) 0.23 (0.26) (0.26) 9.85 2.34 (b) 16,019 1.67 1.53 (c) 2.57 52.2 2024 9.32 0.21 0.56 0.77 (0.21) (0.21) 9.88 8.34 (b) 20,508 1.70 1.54 (c) 2.18 35.9 2023 9.29 0.20 0.02 0.22 (0.19) (0.19) 9.32 2.32 (b) 21,229 1.73 1.56 (c) 2.05 31.5 2022 11.05 0.16 (1.76) (1.60) (0.16) (0.16) 9.29 (14.55) (b) 26,031 1.60 1.54 (c) 1.59 38.9 2021 10.87 0.15 0.18 0.33 (0.15) (0.15) 11.05 3.05 (b) 39,213 1.59 1.56 (c) 1.31 13.2 Institutional shares 2025 9.87 0.35 (0.02) 0.33 (0.36) (0.36) 9.84 3.44 293,382 0.60 (e) 0.46 (c),(e) 3.64 52.2 2024 9.30 0.32 0.57 0.89 (0.32) (0.32) 9.87 9.64 279,440 0.62 (e) 0.46 (c),(e) 3.27 35.9 2023 9.27 0.31 0.02 0.33 (0.30) (0.30) 9.30 3.46 235,290 0.63 (e) 0.46 (c),(e) 3.15 31.5 2022 11.03 0.27 (1.76) (1.49) (0.27) (0.27) 9.27 (13.65) 198,684 0.53 (e) 0.47 (c),(e) 2.68 38.9 2021 10.86 0.26 0.18 0.44 (0.27) (0.27) 11.03 4.05 217,309 0.54 (e) 0.51 (c),(e) 2.36 13.2 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Excludes interest expense and fees paid through inverse floater agreements. See "Operating Policies" in notes to financial statements. (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. 2

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![null003.jpg](ck0000898745-20260227_g66.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 CORE FIXED INCOME FUND Class A shares 2025 $8.53 $0.27 $0.21 $0.48 ($0.29) ($0.29) $8.72 5.74%(b) $194,772 0.71% –% 3.15% 13.4% 2024 7.95 0.25 0.60 0.85 (0.27) (0.27) 8.53 10.76 (b) 207,573 0.71 – 2.94 13.9 2023 8.19 0.22 (0.22) – (0.24) (0.24) 7.95 (0.10) (b) 201,448 0.79 – 2.57 9.9 2022 9.95 0.16 (1.72) (1.56) (0.20) (0.20) 8.19 (15.89) (b),(c) 199,804 0.76 – 1.71 13.7 2021 10.17 0.13 (0.16) (0.03) (0.19) (0.19) 9.95 (0.18) (b),(c) 293,606 0.78 – 1.30 15.8 Class J shares 2025 8.55 0.28 0.21 0.49 (0.30) (0.30) 8.74 5.88 (b) 79,136 0.57 (d) 0.57 (e) 3.29 13.4 2024 7.97 0.26 0.60 0.86 (0.28) (0.28) 8.55 10.91 (b) 82,571 0.55 (d) 0.56 (e) 3.11 13.9 2023 8.21 0.23 (0.22) 0.01 (0.25) (0.25) 7.97 0.04 (b) 79,226 0.65 (d) 0.67 (e) 2.70 9.9 2022 9.98 0.17 (1.72) (1.55) (0.22) (0.22) 8.21 (15.74) (b) 84,794 0.62 (d) 0.64 (e) 1.85 13.7 2021 10.19 0.15 (0.15) – (0.21) (0.21) 9.98 (0.05) (b) 114,866 0.64 (d) 0.66 (e) 1.44 15.8 Institutional shares 2025 8.56 0.29 0.21 0.50 (0.31) (0.31) 8.75 6.01 603,826 0.43 (f) – 3.43 13.4 2024 7.98 0.27 0.60 0.87 (0.29) (0.29) 8.56 11.01 542,411 0.44 (f) – 3.20 13.9 2023 8.22 0.24 (0.21) 0.03 (0.27) (0.27) 7.98 0.23 785,524 0.46 (f) – 2.90 9.9 2022 9.99 0.18 (1.72) (1.54) (0.23) (0.23) 8.22 (15.60) 636,066 0.47 (f) – 2.00 13.7 2021 10.20 0.16 (0.15) 0.01 (0.22) (0.22) 9.99 0.06 770,550 0.54 (f) – 1.55 15.8 R-3 shares 2025 8.58 0.25 0.22 0.47 (0.27) (0.27) 8.78 5.62 16,453 0.90 – 2.96 13.4 2024 8.00 0.23 0.60 0.83 (0.25) (0.25) 8.58 10.47 9,170 0.91 – 2.74 13.9 2023 8.24 0.20 (0.21) (0.01) (0.23) (0.23) 8.00 (0.25) 9,070 0.95 – 2.40 9.9 2022 10.01 0.14 (1.72) (1.58) (0.19) (0.19) 8.24 (15.97) 10,025 0.95 – 1.52 13.7 2021 10.22 0.11 (0.15) (0.04) (0.17) (0.17) 10.01 (0.38) 12,325 0.98 – 1.10 15.8 R-5 shares 2025 8.55 0.28 0.21 0.49 (0.30) (0.30) 8.74 5.85 21,689 0.59 – 3.27 13.4 2024 7.97 0.26 0.60 0.86 (0.28) (0.28) 8.55 10.85 17,233 0.60 – 3.05 13.9 2023 8.21 0.23 (0.21) 0.02 (0.26) (0.26) 7.97 0.06 19,969 0.64 – 2.72 9.9 2022 9.98 0.17 (1.73) (1.56) (0.21) (0.21) 8.21 (15.76) 18,198 0.64 – 1.81 13.7 2021 10.19 0.14 (0.15) (0.01) (0.20) (0.20) 9.98 (0.07) 32,242 0.67 – 1.41 15.8 R-6 shares 2025 8.55 0.30 0.21 0.51 (0.32) (0.32) 8.74 6.12 9,816,682 0.34 – 3.53 13.4 2024 7.97 0.28 0.60 0.88 (0.30) (0.30) 8.55 11.14 9,972,321 0.34 – 3.31 13.9 2023 8.21 0.25 (0.21) 0.04 (0.28) (0.28) 7.97 0.32 8,552,003 0.38 – 2.97 9.9 2022 9.98 0.19 (1.72) (1.53) (0.24) (0.24) 8.21 (15.54) 8,288,998 0.38 – 2.10 13.7 2021 10.19 0.17 (0.15) 0.02 (0.23) (0.23) 9.98 0.18 9,159,603 0.41 (f) – 1.67 15.8 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (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. (d) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (e) Excludes expense reimbursement from Manager and/or Distributor. (f) Subject to Manager's contractual expense limit. 3

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![null004.jpg](ck0000898745-20260227_g67.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 CORE FIXED INCOME FUND Class A shares 2025 $8.53 $0.27 $0.21 $0.48 ($0.29) ($0.29) $8.72 5.74%(b) $194,772 0.71% –% 3.15% 13.4% 2024 7.95 0.25 0.60 0.85 (0.27) (0.27) 8.53 10.76 (b) 207,573 0.71 – 2.94 13.9 2023 8.19 0.22 (0.22) – (0.24) (0.24) 7.95 (0.10) (b) 201,448 0.79 – 2.57 9.9 2022 9.95 0.16 (1.72) (1.56) (0.20) (0.20) 8.19 (15.89) (b),(c) 199,804 0.76 – 1.71 13.7 2021 10.17 0.13 (0.16) (0.03) (0.19) (0.19) 9.95 (0.18) (b),(c) 293,606 0.78 – 1.30 15.8 Class J shares 2025 8.55 0.28 0.21 0.49 (0.30) (0.30) 8.74 5.88 (b) 79,136 0.57 (d) 0.57 (e) 3.29 13.4 2024 7.97 0.26 0.60 0.86 (0.28) (0.28) 8.55 10.91 (b) 82,571 0.55 (d) 0.56 (e) 3.11 13.9 2023 8.21 0.23 (0.22) 0.01 (0.25) (0.25) 7.97 0.04 (b) 79,226 0.65 (d) 0.67 (e) 2.70 9.9 2022 9.98 0.17 (1.72) (1.55) (0.22) (0.22) 8.21 (15.74) (b) 84,794 0.62 (d) 0.64 (e) 1.85 13.7 2021 10.19 0.15 (0.15) – (0.21) (0.21) 9.98 (0.05) (b) 114,866 0.64 (d) 0.66 (e) 1.44 15.8 Institutional shares 2025 8.56 0.29 0.21 0.50 (0.31) (0.31) 8.75 6.01 603,826 0.43 (f) – 3.43 13.4 2024 7.98 0.27 0.60 0.87 (0.29) (0.29) 8.56 11.01 542,411 0.44 (f) – 3.20 13.9 2023 8.22 0.24 (0.21) 0.03 (0.27) (0.27) 7.98 0.23 785,524 0.46 (f) – 2.90 9.9 2022 9.99 0.18 (1.72) (1.54) (0.23) (0.23) 8.22 (15.60) 636,066 0.47 (f) – 2.00 13.7 2021 10.20 0.16 (0.15) 0.01 (0.22) (0.22) 9.99 0.06 770,550 0.54 (f) – 1.55 15.8 R-3 shares 2025 8.58 0.25 0.22 0.47 (0.27) (0.27) 8.78 5.62 16,453 0.90 – 2.96 13.4 2024 8.00 0.23 0.60 0.83 (0.25) (0.25) 8.58 10.47 9,170 0.91 – 2.74 13.9 2023 8.24 0.20 (0.21) (0.01) (0.23) (0.23) 8.00 (0.25) 9,070 0.95 – 2.40 9.9 2022 10.01 0.14 (1.72) (1.58) (0.19) (0.19) 8.24 (15.97) 10,025 0.95 – 1.52 13.7 2021 10.22 0.11 (0.15) (0.04) (0.17) (0.17) 10.01 (0.38) 12,325 0.98 – 1.10 15.8 R-5 shares 2025 8.55 0.28 0.21 0.49 (0.30) (0.30) 8.74 5.85 21,689 0.59 – 3.27 13.4 2024 7.97 0.26 0.60 0.86 (0.28) (0.28) 8.55 10.85 17,233 0.60 – 3.05 13.9 2023 8.21 0.23 (0.21) 0.02 (0.26) (0.26) 7.97 0.06 19,969 0.64 – 2.72 9.9 2022 9.98 0.17 (1.73) (1.56) (0.21) (0.21) 8.21 (15.76) 18,198 0.64 – 1.81 13.7 2021 10.19 0.14 (0.15) (0.01) (0.20) (0.20) 9.98 (0.07) 32,242 0.67 – 1.41 15.8 R-6 shares 2025 8.55 0.30 0.21 0.51 (0.32) (0.32) 8.74 6.12 9,816,682 0.34 – 3.53 13.4 2024 7.97 0.28 0.60 0.88 (0.30) (0.30) 8.55 11.14 9,972,321 0.34 – 3.31 13.9 2023 8.21 0.25 (0.21) 0.04 (0.28) (0.28) 7.97 0.32 8,552,003 0.38 – 2.97 9.9 2022 9.98 0.19 (1.72) (1.53) (0.24) (0.24) 8.21 (15.54) 8,288,998 0.38 – 2.10 13.7 2021 10.19 0.17 (0.15) 0.02 (0.23) (0.23) 9.98 0.18 9,159,603 0.41 (f) – 1.67 15.8 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (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. (d) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (e) Excludes expense reimbursement from Manager and/or Distributor. (f) Subject to Manager's contractual expense limit. 4

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![null005.jpg](ck0000898745-20260227_g68.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 CORE PLUS BOND FUND Class A shares 2025 $9.07 $0.39 $0.13 $0.52 ($0.39) $– ($0.39) $9.20 5.89%(b) $63,683 0.80%(c) –% 4.33% 165.0% 2024 8.51 0.35 0.55 0.90 (0.34) – (0.34) 9.07 10.68 (b) 64,346 0.81 (c) – 3.83 159.6 2023 8.84 0.29 (0.35) (0.06) (0.27) – (0.27) 8.51 (0.83) (b) 65,589 0.84 (c) – 3.16 156.0 2022 10.99 0.20 (2.05) (1.85) (0.17) (0.13) (0.30) 8.84 (17.03) (b) 69,698 0.84 (c) – 2.04 160.7 2021 11.57 0.17 (0.03) 0.14 (0.19) (0.53) (0.72) 10.99 1.24 (b) 94,268 0.84 (c) – 1.54 181.5 Class J shares 2025 9.15 0.39 0.13 0.52 (0.39) – (0.39) 9.28 5.83 (b) 94,654 0.81 (d) 0.81 (e) 4.32 165.0 2024 8.58 0.35 0.56 0.91 (0.34) – (0.34) 9.15 10.72 (b) 95,565 0.80 (d) 0.81 (e) 3.85 159.6 2023 8.91 0.28 (0.35) (0.07) (0.26) – (0.26) 8.58 (0.93) (b) 94,195 0.94 (d) 0.98 (e) 3.06 156.0 2022 11.08 0.20 (2.07) (1.87) (0.17) (0.13) (0.30) 8.91 (17.08) (b) 103,790 0.85 (d) 0.93 (e) 2.04 160.7 2021 11.66 0.18 (0.03) 0.15 (0.20) (0.53) (0.73) 11.08 1.25 (b) 142,242 0.82 (d) 0.91 (e) 1.56 181.5 Institutional shares 2025 9.06 0.42 0.13 0.55 (0.42) – (0.42) 9.19 6.24 322,956 0.48 (c) – 4.65 165.0 2024 8.51 0.38 0.54 0.92 (0.37) – (0.37) 9.06 10.90 330,925 0.51 (c) – 4.14 159.6 2023 8.84 0.31 (0.35) (0.04) (0.29) – (0.29) 8.51 (0.44) (f) 330,432 0.56 (c) – 3.44 156.0 2022 10.98 0.23 (2.04) (1.81) (0.20) (0.13) (0.33) 8.84 (16.89) (f) 350,465 0.56 (c) – 2.34 160.7 2021 11.57 0.21 (0.04) 0.17 (0.23) (0.53) (0.76) 10.98 1.54 (f) 398,554 0.56 (c) – 1.85 181.5 R-3 shares 2025 8.99 0.37 0.12 0.49 (0.37) – (0.37) 9.11 5.62 16,579 1.01 – 4.13 165.0 2024 8.44 0.33 0.54 0.87 (0.32) – (0.32) 8.99 10.42 13,628 1.02 – 3.62 159.6 2023 8.77 0.26 (0.34) (0.08) (0.25) – (0.25) 8.44 (1.06) 14,967 1.07 (c) – 2.93 156.0 2022 10.91 0.18 (2.04) (1.86) (0.15) (0.13) (0.28) 8.77 (17.25) 13,893 1.07 (c) – 1.81 160.7 2021 11.49 0.15 (0.03) 0.12 (0.17) (0.53) (0.70) 10.91 1.03 20,465 1.07 (c) – 1.33 181.5 R-5 shares 2025 9.00 0.40 0.13 0.53 (0.40) – (0.40) 9.13 6.04 20,704 0.70 – 4.43 165.0 2024 8.46 0.36 0.53 0.89 (0.35) – (0.35) 9.00 10.62 37,351 0.71 – 3.94 159.6 2023 8.78 0.29 (0.33) (0.04) (0.28) – (0.28) 8.46 (0.64) 37,949 0.76 (c) – 3.24 156.0 2022 10.92 0.21 (2.04) (1.83) (0.18) (0.13) (0.31) 8.78 (16.98) 38,423 0.76 (c) – 2.16 160.7 2021 11.50 0.18 (0.03) 0.15 (0.20) (0.53) (0.73) 10.92 1.34 44,691 0.76 (c) – 1.64 181.5 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit. (d) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (e) Excludes expense reimbursement from Manager and/or Distributor. (f) 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. 5

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![null006.jpg](ck0000898745-20260227_g69.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 CORE PLUS BOND FUND Class A shares 2025 $9.07 $0.39 $0.13 $0.52 ($0.39) $– ($0.39) $9.20 5.89%(b) $63,683 0.80%(c) –% 4.33% 165.0% 2024 8.51 0.35 0.55 0.90 (0.34) – (0.34) 9.07 10.68 (b) 64,346 0.81 (c) – 3.83 159.6 2023 8.84 0.29 (0.35) (0.06) (0.27) – (0.27) 8.51 (0.83) (b) 65,589 0.84 (c) – 3.16 156.0 2022 10.99 0.20 (2.05) (1.85) (0.17) (0.13) (0.30) 8.84 (17.03) (b) 69,698 0.84 (c) – 2.04 160.7 2021 11.57 0.17 (0.03) 0.14 (0.19) (0.53) (0.72) 10.99 1.24 (b) 94,268 0.84 (c) – 1.54 181.5 Class J shares 2025 9.15 0.39 0.13 0.52 (0.39) – (0.39) 9.28 5.83 (b) 94,654 0.81 (d) 0.81 (e) 4.32 165.0 2024 8.58 0.35 0.56 0.91 (0.34) – (0.34) 9.15 10.72 (b) 95,565 0.80 (d) 0.81 (e) 3.85 159.6 2023 8.91 0.28 (0.35) (0.07) (0.26) – (0.26) 8.58 (0.93) (b) 94,195 0.94 (d) 0.98 (e) 3.06 156.0 2022 11.08 0.20 (2.07) (1.87) (0.17) (0.13) (0.30) 8.91 (17.08) (b) 103,790 0.85 (d) 0.93 (e) 2.04 160.7 2021 11.66 0.18 (0.03) 0.15 (0.20) (0.53) (0.73) 11.08 1.25 (b) 142,242 0.82 (d) 0.91 (e) 1.56 181.5 Institutional shares 2025 9.06 0.42 0.13 0.55 (0.42) – (0.42) 9.19 6.24 322,956 0.48 (c) – 4.65 165.0 2024 8.51 0.38 0.54 0.92 (0.37) – (0.37) 9.06 10.90 330,925 0.51 (c) – 4.14 159.6 2023 8.84 0.31 (0.35) (0.04) (0.29) – (0.29) 8.51 (0.44) (f) 330,432 0.56 (c) – 3.44 156.0 2022 10.98 0.23 (2.04) (1.81) (0.20) (0.13) (0.33) 8.84 (16.89) (f) 350,465 0.56 (c) – 2.34 160.7 2021 11.57 0.21 (0.04) 0.17 (0.23) (0.53) (0.76) 10.98 1.54 (f) 398,554 0.56 (c) – 1.85 181.5 R-3 shares 2025 8.99 0.37 0.12 0.49 (0.37) – (0.37) 9.11 5.62 16,579 1.01 – 4.13 165.0 2024 8.44 0.33 0.54 0.87 (0.32) – (0.32) 8.99 10.42 13,628 1.02 – 3.62 159.6 2023 8.77 0.26 (0.34) (0.08) (0.25) – (0.25) 8.44 (1.06) 14,967 1.07 (c) – 2.93 156.0 2022 10.91 0.18 (2.04) (1.86) (0.15) (0.13) (0.28) 8.77 (17.25) 13,893 1.07 (c) – 1.81 160.7 2021 11.49 0.15 (0.03) 0.12 (0.17) (0.53) (0.70) 10.91 1.03 20,465 1.07 (c) – 1.33 181.5 R-5 shares 2025 9.00 0.40 0.13 0.53 (0.40) – (0.40) 9.13 6.04 20,704 0.70 – 4.43 165.0 2024 8.46 0.36 0.53 0.89 (0.35) – (0.35) 9.00 10.62 37,351 0.71 – 3.94 159.6 2023 8.78 0.29 (0.33) (0.04) (0.28) – (0.28) 8.46 (0.64) 37,949 0.76 (c) – 3.24 156.0 2022 10.92 0.21 (2.04) (1.83) (0.18) (0.13) (0.31) 8.78 (16.98) 38,423 0.76 (c) – 2.16 160.7 2021 11.50 0.18 (0.03) 0.15 (0.20) (0.53) (0.73) 10.92 1.34 44,691 0.76 (c) – 1.64 181.5 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit. (d) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (e) Excludes expense reimbursement from Manager and/or Distributor. (f) 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. 6

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![null007.jpg](ck0000898745-20260227_g70.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Tax Return of Capital Distribution Total Dividends and Distributions Net Asset Value, End of Period Total Return 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 DIVERSIFIED INCOME FUND Class A shares 2025 $11.96 $0.69 $0.08 $0.77 ($0.68) $– ($0.68) $12.05 6.65%(b) $881,096 1.03%(c) 5.77% 92.9% 2024 11.26 0.73 0.71 1.44 (0.74) – (0.74) 11.96 13.01 (b) 970,669 1.02 (c) 6.11 86.3 2023 11.58 0.70 (0.35) 0.35 (0.67) – (0.67) 11.26 2.98 (b) 1,024,316 1.03 (d) 5.95 75.1 2022 13.87 0.55 (2.27) (1.72) (0.56) (0.01) (0.57) 11.58 (12.68) (b) 1,156,493 1.01 (d) 4.31 72.1 2021 12.57 0.56 1.32 1.88 (0.58) – (0.58) 13.87 15.13 (b) 1,475,288 1.02 (d) 4.10 93.6 Class C shares 2025 11.89 0.59 0.07 0.66 (0.58) – (0.58) 11.97 5.75 (b) 83,393 1.80 (c) 5.01 92.9 2024 11.19 0.64 0.71 1.35 (0.65) – (0.65) 11.89 12.25 (b) 130,856 1.77 (c) 5.38 86.3 2023 11.51 0.61 (0.35) 0.26 (0.58) – (0.58) 11.19 2.18 (b) 168,004 1.79 (d) 5.17 75.1 2022 13.78 0.45 (2.25) (1.80) (0.47) – (0.47) 11.51 (13.30) (b) 269,493 1.77 (d) 3.50 72.1 2021 12.49 0.47 1.29 1.76 (0.47) – (0.47) 13.78 14.24 (b) 469,597 1.76 (d) 3.48 93.6 Institutional shares 2025 11.89 0.73 0.06 0.79 (0.72) – (0.72) 11.96 6.89 1,361,939 0.69 (c),(d) 6.12 92.9 2024 11.20 0.76 0.71 1.47 (0.78) – (0.78) 11.89 13.38 1,401,376 0.69 (c),(d) 6.43 86.3 2023 11.52 0.74 (0.35) 0.39 (0.71) – (0.71) 11.20 3.36 1,341,117 0.68 (d) 6.30 75.1 2022 13.79 0.59 (2.24) (1.65) (0.61) (0.01) (0.62) 11.52 (12.31) 1,769,364 0.68 (d) 4.63 72.1 2021 12.50 0.61 1.31 1.92 (0.63) – (0.63) 13.79 15.52 2,448,424 0.68 (d) 4.48 93.6 R-6 shares 2025 11.88 0.73 0.07 0.80 (0.72) – (0.72) 11.96 6.98 70,372 0.68 (c),(d) 6.14 92.9 2024 11.19 0.76 0.71 1.47 (0.78) – (0.78) 11.88 13.40 104,439 0.68 (c),(d) 6.41 86.3 2023 11.51 0.73 (0.33) 0.40 (0.72) – (0.72) 11.19 3.37 104,419 0.67 (d) 6.25 75.1 2022 13.78 0.58 (2.23) (1.65) (0.61) (0.01) (0.62) 11.51 (12.31) 43,433 0.67 (d) 4.49 72.1 2021 12.49 0.62 1.30 1.92 (0.63) – (0.63) 13.78 15.54 101,194 0.68 (d) 4.54 93.6 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Includes 0.01% of expenses associated with the reclaim of foreign taxes paid. The expense is not subject to the Manager's contractual expense limit. (d) Subject to Manager's contractual expense limit. 7

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![null008.jpg](ck0000898745-20260227_g71.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Tax Return of Capital Distribution Total Dividends and Distributions Net Asset Value, End of Period Total Return 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 DIVERSIFIED INCOME FUND Class A shares 2025 $11.96 $0.69 $0.08 $0.77 ($0.68) $– ($0.68) $12.05 6.65%(b) $881,096 1.03%(c) 5.77% 92.9% 2024 11.26 0.73 0.71 1.44 (0.74) – (0.74) 11.96 13.01 (b) 970,669 1.02 (c) 6.11 86.3 2023 11.58 0.70 (0.35) 0.35 (0.67) – (0.67) 11.26 2.98 (b) 1,024,316 1.03 (d) 5.95 75.1 2022 13.87 0.55 (2.27) (1.72) (0.56) (0.01) (0.57) 11.58 (12.68) (b) 1,156,493 1.01 (d) 4.31 72.1 2021 12.57 0.56 1.32 1.88 (0.58) – (0.58) 13.87 15.13 (b) 1,475,288 1.02 (d) 4.10 93.6 Class C shares 2025 11.89 0.59 0.07 0.66 (0.58) – (0.58) 11.97 5.75 (b) 83,393 1.80 (c) 5.01 92.9 2024 11.19 0.64 0.71 1.35 (0.65) – (0.65) 11.89 12.25 (b) 130,856 1.77 (c) 5.38 86.3 2023 11.51 0.61 (0.35) 0.26 (0.58) – (0.58) 11.19 2.18 (b) 168,004 1.79 (d) 5.17 75.1 2022 13.78 0.45 (2.25) (1.80) (0.47) – (0.47) 11.51 (13.30) (b) 269,493 1.77 (d) 3.50 72.1 2021 12.49 0.47 1.29 1.76 (0.47) – (0.47) 13.78 14.24 (b) 469,597 1.76 (d) 3.48 93.6 Institutional shares 2025 11.89 0.73 0.06 0.79 (0.72) – (0.72) 11.96 6.89 1,361,939 0.69 (c),(d) 6.12 92.9 2024 11.20 0.76 0.71 1.47 (0.78) – (0.78) 11.89 13.38 1,401,376 0.69 (c),(d) 6.43 86.3 2023 11.52 0.74 (0.35) 0.39 (0.71) – (0.71) 11.20 3.36 1,341,117 0.68 (d) 6.30 75.1 2022 13.79 0.59 (2.24) (1.65) (0.61) (0.01) (0.62) 11.52 (12.31) 1,769,364 0.68 (d) 4.63 72.1 2021 12.50 0.61 1.31 1.92 (0.63) – (0.63) 13.79 15.52 2,448,424 0.68 (d) 4.48 93.6 R-6 shares 2025 11.88 0.73 0.07 0.80 (0.72) – (0.72) 11.96 6.98 70,372 0.68 (c),(d) 6.14 92.9 2024 11.19 0.76 0.71 1.47 (0.78) – (0.78) 11.88 13.40 104,439 0.68 (c),(d) 6.41 86.3 2023 11.51 0.73 (0.33) 0.40 (0.72) – (0.72) 11.19 3.37 104,419 0.67 (d) 6.25 75.1 2022 13.78 0.58 (2.23) (1.65) (0.61) (0.01) (0.62) 11.51 (12.31) 43,433 0.67 (d) 4.49 72.1 2021 12.49 0.62 1.30 1.92 (0.63) – (0.63) 13.78 15.54 101,194 0.68 (d) 4.54 93.6 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Includes 0.01% of expenses associated with the reclaim of foreign taxes paid. The expense is not subject to the Manager's contractual expense limit. (d) Subject to Manager's contractual expense limit. 8

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![null009.jpg](ck0000898745-20260227_g72.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 DIVERSIFIED INTERNATIONAL FUND Class A shares 2025 $14.22 $0.21 $2.99 $3.20 ($0.28) ($0.40) ($0.68) $16.74 23.68%(b) $249,627 1.22%(c) –% 1.40% 38.2% 2024 11.87 0.19 2.44 2.63 (0.28) – (0.28) 14.22 22.37 (b) 221,725 1.18 (d) – 1.40 35.0 2023 10.77 0.16 1.01 1.17 (0.07) – (0.07) 11.87 10.89 (b) 197,169 1.29 (e) – 1.28 42.2 2022 16.33 0.21 (3.85) (3.64) (0.50) (1.42) (1.92) 10.77 (25.02) (b) 193,894 1.23 (e) – 1.65 57.0 2021 12.74 0.18 3.52 3.70 (0.11) – (0.11) 16.33 29.16 (b) 267,701 1.18 – 1.16 48.7 Class J shares 2025 14.02 0.22 2.93 3.15 (0.30) (0.40) (0.70) 16.47 23.79 (b),(f) 183,313 1.11 (c),(g) 1.12 (h) 1.51 38.2 2024 11.70 0.21 2.41 2.62 (0.30) – (0.30) 14.02 22.60 (b) 151,958 1.05 (d),(g) 1.06 (h) 1.54 35.0 2023 10.62 0.17 1.00 1.17 (0.09) – (0.09) 11.70 11.01 (b) 133,313 1.17 (e),(g) 1.19 (h) 1.41 42.2 2022 16.13 0.22 (3.79) (3.57) (0.52) (1.42) (1.94) 10.62 (24.93) (b) 125,792 1.12 (e),(g) 1.14 (h) 1.76 57.0 2021 12.58 0.20 3.48 3.68 (0.13) – (0.13) 16.13 29.35 (b) 178,815 1.05 (g) 1.08 (h) 1.28 48.7 Institutional shares 2025 14.14 0.24 2.99 3.23 (0.32) (0.40) (0.72) 16.65 24.12 165,766 0.86 (c),(i) – 1.63 38.2 2024 11.81 0.23 2.43 2.66 (0.33) – (0.33) 14.14 22.79 197,038 0.86 (d),(i) – 1.67 35.0 2023 10.71 0.21 1.01 1.22 (0.12) – (0.12) 11.81 11.40 388,034 0.88 (e),(i) – 1.70 42.2 2022 16.25 0.25 (3.82) (3.57) (0.55) (1.42) (1.97) 10.71 (24.77) 402,288 0.88 (e),(i) – 1.99 57.0 2021 12.68 0.24 3.49 3.73 (0.16) – (0.16) 16.25 29.63 (f) 557,003 0.85 (i) – 1.50 48.7 R-3 shares 2025 14.17 0.18 2.98 3.16 (0.27) (0.40) (0.67) 16.66 23.43 14,816 1.39 (c) – 1.22 38.2 2024 11.84 0.18 2.43 2.61 (0.28) – (0.28) 14.17 22.23 10,274 1.32 (d) – 1.27 35.0 2023 10.74 0.15 1.00 1.15 (0.05) – (0.05) 11.84 10.77 9,612 1.36 (e) – 1.19 42.2 2022 16.28 0.19 (3.83) (3.64) (0.48) (1.42) (1.90) 10.74 (25.09) 9,164 1.35 (e) – 1.50 57.0 2021 12.70 0.17 3.51 3.68 (0.10) – (0.10) 16.28 29.03 14,118 1.32 – 1.06 48.7 R-5 shares 2025 14.38 0.23 3.02 3.25 (0.31) (0.40) (0.71) 16.92 23.83 24,228 1.08 (c) – 1.53 38.2 2024 12.00 0.22 2.47 2.69 (0.31) – (0.31) 14.38 22.63 18,466 1.01 (d) – 1.57 35.0 2023 10.89 0.18 1.02 1.20 (0.09) – (0.09) 12.00 11.10 17,975 1.05 (e) – 1.49 42.2 2022 16.48 0.23 (3.88) (3.65) (0.52) (1.42) (1.94) 10.89 (24.85) 23,589 1.04 (e) – 1.76 57.0 2021 12.85 0.21 3.56 3.77 (0.14) – (0.14) 16.48 29.41 41,789 1.01 – 1.35 48.7 R-6 shares 2025 14.15 0.11 3.13 3.24 (0.34) (0.40) (0.74) 16.65 24.23 554,680 0.76 (c),(i) – 0.76 38.2 2024 11.82 0.25 2.43 2.68 (0.35) – (0.35) 14.15 22.89 6,157,664 0.76 (d) – 1.80 35.0 2023 10.73 0.22 1.00 1.22 (0.13) – (0.13) 11.82 11.40 3,725,314 0.79 (e),(i) – 1.78 42.2 2022 16.27 0.26 (3.82) (3.56) (0.56) (1.42) (1.98) 10.73 (24.66) 3,254,802 0.78 (e),(i) – 2.08 57.0 2021 12.69 0.23 3.52 3.75 (0.17) – (0.17) 16.27 29.71 4,491,999 0.74 (i) – 1.51 48.7 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Includes 0.01% of expense associated with consulting fees. The expense is not subject to the Manager's contractual expense limit. (d) Includes 0.01% of expenses associated with the reclaim of foreign taxes paid. The expense is not subject to the Manager's contractual expense limit. (e) Includes 0.03% of expenses associated with the reclaim of foreign taxes paid. The expense is not subject to the Manager's contractual expense limit. (f) 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. (g) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (h) Excludes expense reimbursement from Manager and/or Distributor. (i) Subject to Manager's contractual expense limit. 9

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![null010.jpg](ck0000898745-20260227_g73.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 DIVERSIFIED INTERNATIONAL FUND Class A shares 2025 $14.22 $0.21 $2.99 $3.20 ($0.28) ($0.40) ($0.68) $16.74 23.68%(b) $249,627 1.22%(c) –% 1.40% 38.2% 2024 11.87 0.19 2.44 2.63 (0.28) – (0.28) 14.22 22.37 (b) 221,725 1.18 (d) – 1.40 35.0 2023 10.77 0.16 1.01 1.17 (0.07) – (0.07) 11.87 10.89 (b) 197,169 1.29 (e) – 1.28 42.2 2022 16.33 0.21 (3.85) (3.64) (0.50) (1.42) (1.92) 10.77 (25.02) (b) 193,894 1.23 (e) – 1.65 57.0 2021 12.74 0.18 3.52 3.70 (0.11) – (0.11) 16.33 29.16 (b) 267,701 1.18 – 1.16 48.7 Class J shares 2025 14.02 0.22 2.93 3.15 (0.30) (0.40) (0.70) 16.47 23.79 (b),(f) 183,313 1.11 (c),(g) 1.12 (h) 1.51 38.2 2024 11.70 0.21 2.41 2.62 (0.30) – (0.30) 14.02 22.60 (b) 151,958 1.05 (d),(g) 1.06 (h) 1.54 35.0 2023 10.62 0.17 1.00 1.17 (0.09) – (0.09) 11.70 11.01 (b) 133,313 1.17 (e),(g) 1.19 (h) 1.41 42.2 2022 16.13 0.22 (3.79) (3.57) (0.52) (1.42) (1.94) 10.62 (24.93) (b) 125,792 1.12 (e),(g) 1.14 (h) 1.76 57.0 2021 12.58 0.20 3.48 3.68 (0.13) – (0.13) 16.13 29.35 (b) 178,815 1.05 (g) 1.08 (h) 1.28 48.7 Institutional shares 2025 14.14 0.24 2.99 3.23 (0.32) (0.40) (0.72) 16.65 24.12 165,766 0.86 (c),(i) – 1.63 38.2 2024 11.81 0.23 2.43 2.66 (0.33) – (0.33) 14.14 22.79 197,038 0.86 (d),(i) – 1.67 35.0 2023 10.71 0.21 1.01 1.22 (0.12) – (0.12) 11.81 11.40 388,034 0.88 (e),(i) – 1.70 42.2 2022 16.25 0.25 (3.82) (3.57) (0.55) (1.42) (1.97) 10.71 (24.77) 402,288 0.88 (e),(i) – 1.99 57.0 2021 12.68 0.24 3.49 3.73 (0.16) – (0.16) 16.25 29.63 (f) 557,003 0.85 (i) – 1.50 48.7 R-3 shares 2025 14.17 0.18 2.98 3.16 (0.27) (0.40) (0.67) 16.66 23.43 14,816 1.39 (c) – 1.22 38.2 2024 11.84 0.18 2.43 2.61 (0.28) – (0.28) 14.17 22.23 10,274 1.32 (d) – 1.27 35.0 2023 10.74 0.15 1.00 1.15 (0.05) – (0.05) 11.84 10.77 9,612 1.36 (e) – 1.19 42.2 2022 16.28 0.19 (3.83) (3.64) (0.48) (1.42) (1.90) 10.74 (25.09) 9,164 1.35 (e) – 1.50 57.0 2021 12.70 0.17 3.51 3.68 (0.10) – (0.10) 16.28 29.03 14,118 1.32 – 1.06 48.7 R-5 shares 2025 14.38 0.23 3.02 3.25 (0.31) (0.40) (0.71) 16.92 23.83 24,228 1.08 (c) – 1.53 38.2 2024 12.00 0.22 2.47 2.69 (0.31) – (0.31) 14.38 22.63 18,466 1.01 (d) – 1.57 35.0 2023 10.89 0.18 1.02 1.20 (0.09) – (0.09) 12.00 11.10 17,975 1.05 (e) – 1.49 42.2 2022 16.48 0.23 (3.88) (3.65) (0.52) (1.42) (1.94) 10.89 (24.85) 23,589 1.04 (e) – 1.76 57.0 2021 12.85 0.21 3.56 3.77 (0.14) – (0.14) 16.48 29.41 41,789 1.01 – 1.35 48.7 R-6 shares 2025 14.15 0.11 3.13 3.24 (0.34) (0.40) (0.74) 16.65 24.23 554,680 0.76 (c),(i) – 0.76 38.2 2024 11.82 0.25 2.43 2.68 (0.35) – (0.35) 14.15 22.89 6,157,664 0.76 (d) – 1.80 35.0 2023 10.73 0.22 1.00 1.22 (0.13) – (0.13) 11.82 11.40 3,725,314 0.79 (e),(i) – 1.78 42.2 2022 16.27 0.26 (3.82) (3.56) (0.56) (1.42) (1.98) 10.73 (24.66) 3,254,802 0.78 (e),(i) – 2.08 57.0 2021 12.69 0.23 3.52 3.75 (0.17) – (0.17) 16.27 29.71 4,491,999 0.74 (i) – 1.51 48.7 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Includes 0.01% of expense associated with consulting fees. The expense is not subject to the Manager's contractual expense limit. (d) Includes 0.01% of expenses associated with the reclaim of foreign taxes paid. The expense is not subject to the Manager's contractual expense limit. (e) Includes 0.03% of expenses associated with the reclaim of foreign taxes paid. The expense is not subject to the Manager's contractual expense limit. (f) 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. (g) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (h) Excludes expense reimbursement from Manager and/or Distributor. (i) Subject to Manager's contractual expense limit. 10

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![null011.jpg](ck0000898745-20260227_g74.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 EQUITY INCOME FUND Class A shares 2025 $43.04 $0.52 $3.59 $4.11 ($0.59) ($3.72) ($4.31) $42.84 10.27%(b) $1,255,226 0.85% –% 1.27% 16.7% 2024 33.09 0.66 10.18 10.84 (0.63) (0.26) (0.89) 43.04 33.11 (b) 1,296,060 0.85 – 1.68 16.3 2023 35.30 0.69 (0.88) (0.19) (0.67) (1.35) (2.02) 33.09 (0.83) (b) 1,078,315 0.87 – 1.96 13.3 2022 41.63 0.56 (4.79) (4.23) (0.49) (1.61) (2.10) 35.30 (10.64) (b) 1,176,246 0.86 – 1.48 16.9 2021 30.66 0.51 10.94 11.45 (0.48) – (0.48) 41.63 37.51 (b) 1,424,668 0.86 – 1.33 22.0 Class C shares 2025 41.64 0.19 3.47 3.66 (0.29) (3.72) (4.01) 41.29 9.41 (b) 66,019 1.63 – 0.49 16.7 2024 32.04 0.36 9.84 10.20 (0.34) (0.26) (0.60) 41.64 32.10 (b) 74,647 1.62 – 0.94 16.3 2023 34.23 0.41 (0.85) (0.44) (0.40) (1.35) (1.75) 32.04 (1.59) (b) 72,774 1.65 – 1.20 13.3 2022 40.42 0.26 (4.63) (4.37) (0.21) (1.61) (1.82) 34.23 (11.33) (b),(c) 97,145 1.62 – 0.72 16.9 2021 29.78 0.22 10.62 10.84 (0.20) – (0.20) 40.42 36.49 (b),(c) 125,768 1.61 – 0.61 22.0 Class J shares 2025 43.10 0.56 3.59 4.15 (0.63) (3.72) (4.35) 42.90 10.37 (b) 91,168 0.74 (d) 0.74 (e) 1.37 16.7 2024 33.13 0.71 10.20 10.91 (0.68) (0.26) (0.94) 43.10 33.27 (b) 89,080 0.74 (d) 0.75 (e) 1.79 16.3 2023 35.34 0.73 (0.89) (0.16) (0.70) (1.35) (2.05) 33.13 (0.75) (b) 70,291 0.79 (d) 0.81 (e) 2.05 13.3 2022 41.68 0.60 (4.80) (4.20) (0.53) (1.61) (2.14) 35.34 (10.55) (b) 76,630 0.77 (d) 0.79 (e) 1.58 16.9 2021 30.70 0.55 10.94 11.49 (0.51) – (0.51) 41.68 37.60 (b) 86,651 0.77 (d) 0.79 (e) 1.42 22.0 Institutional shares 2025 43.11 0.65 3.60 4.25 (0.72) (3.72) (4.44) 42.92 10.64 6,860,500 0.52 (f) – 1.59 16.7 2024 33.14 0.80 10.20 11.00 (0.77) (0.26) (1.03) 43.11 33.55 7,405,320 0.52 (f) – 2.01 16.3 2023 35.36 0.82 (0.89) (0.07) (0.80) (1.35) (2.15) 33.14 (0.50) 6,448,013 0.52 (f) – 2.32 13.3 2022 41.69 0.69 (4.79) (4.10) (0.62) (1.61) (2.23) 35.36 (10.32) (c) 7,731,338 0.52 (f) – 1.82 16.9 2021 30.71 0.64 10.95 11.59 (0.61) – (0.61) 41.69 37.97 (c) 9,001,763 0.52 (f) – 1.68 22.0 R-3 shares 2025 42.87 0.42 3.58 4.00 (0.50) (3.72) (4.22) 42.65 10.02 29,054 1.08 – 1.04 16.7 2024 32.97 0.57 10.14 10.71 (0.55) (0.26) (0.81) 42.87 32.79 29,118 1.08 – 1.46 16.3 2023 35.18 0.62 (0.88) (0.26) (0.60) (1.35) (1.95) 32.97 (1.05) 25,777 1.08 – 1.77 13.3 2022 41.49 0.48 (4.77) (4.29) (0.41) (1.61) (2.02) 35.18 (10.81) 30,045 1.08 – 1.27 16.9 2021 30.56 0.43 10.90 11.33 (0.40) – (0.40) 41.49 37.21 33,754 1.07 – 1.12 22.0 R-5 shares 2025 43.05 0.55 3.59 4.14 (0.63) (3.72) (4.35) 42.84 10.34 166,162 0.77 – 1.34 16.7 2024 33.10 0.71 10.17 10.88 (0.67) (0.26) (0.93) 43.05 33.21 129,846 0.77 – 1.80 16.3 2023 35.31 0.73 (0.88) (0.15) (0.71) (1.35) (2.06) 33.10 (0.73) 127,806 0.77 – 2.07 13.3 2022 41.64 0.60 (4.79) (4.19) (0.53) (1.61) (2.14) 35.31 (10.54) 147,468 0.77 – 1.57 16.9 2021 30.67 0.55 10.93 11.48 (0.51) – (0.51) 41.64 37.62 179,232 0.76 – 1.43 22.0 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (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. (d) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (e) Excludes expense reimbursement from Manager and/or Distributor. (f) Subject to Manager's contractual expense limit. 11

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![null012.jpg](ck0000898745-20260227_g75.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 EQUITY INCOME FUND Class A shares 2025 $43.04 $0.52 $3.59 $4.11 ($0.59) ($3.72) ($4.31) $42.84 10.27%(b) $1,255,226 0.85% –% 1.27% 16.7% 2024 33.09 0.66 10.18 10.84 (0.63) (0.26) (0.89) 43.04 33.11 (b) 1,296,060 0.85 – 1.68 16.3 2023 35.30 0.69 (0.88) (0.19) (0.67) (1.35) (2.02) 33.09 (0.83) (b) 1,078,315 0.87 – 1.96 13.3 2022 41.63 0.56 (4.79) (4.23) (0.49) (1.61) (2.10) 35.30 (10.64) (b) 1,176,246 0.86 – 1.48 16.9 2021 30.66 0.51 10.94 11.45 (0.48) – (0.48) 41.63 37.51 (b) 1,424,668 0.86 – 1.33 22.0 Class C shares 2025 41.64 0.19 3.47 3.66 (0.29) (3.72) (4.01) 41.29 9.41 (b) 66,019 1.63 – 0.49 16.7 2024 32.04 0.36 9.84 10.20 (0.34) (0.26) (0.60) 41.64 32.10 (b) 74,647 1.62 – 0.94 16.3 2023 34.23 0.41 (0.85) (0.44) (0.40) (1.35) (1.75) 32.04 (1.59) (b) 72,774 1.65 – 1.20 13.3 2022 40.42 0.26 (4.63) (4.37) (0.21) (1.61) (1.82) 34.23 (11.33) (b),(c) 97,145 1.62 – 0.72 16.9 2021 29.78 0.22 10.62 10.84 (0.20) – (0.20) 40.42 36.49 (b),(c) 125,768 1.61 – 0.61 22.0 Class J shares 2025 43.10 0.56 3.59 4.15 (0.63) (3.72) (4.35) 42.90 10.37 (b) 91,168 0.74 (d) 0.74 (e) 1.37 16.7 2024 33.13 0.71 10.20 10.91 (0.68) (0.26) (0.94) 43.10 33.27 (b) 89,080 0.74 (d) 0.75 (e) 1.79 16.3 2023 35.34 0.73 (0.89) (0.16) (0.70) (1.35) (2.05) 33.13 (0.75) (b) 70,291 0.79 (d) 0.81 (e) 2.05 13.3 2022 41.68 0.60 (4.80) (4.20) (0.53) (1.61) (2.14) 35.34 (10.55) (b) 76,630 0.77 (d) 0.79 (e) 1.58 16.9 2021 30.70 0.55 10.94 11.49 (0.51) – (0.51) 41.68 37.60 (b) 86,651 0.77 (d) 0.79 (e) 1.42 22.0 Institutional shares 2025 43.11 0.65 3.60 4.25 (0.72) (3.72) (4.44) 42.92 10.64 6,860,500 0.52 (f) – 1.59 16.7 2024 33.14 0.80 10.20 11.00 (0.77) (0.26) (1.03) 43.11 33.55 7,405,320 0.52 (f) – 2.01 16.3 2023 35.36 0.82 (0.89) (0.07) (0.80) (1.35) (2.15) 33.14 (0.50) 6,448,013 0.52 (f) – 2.32 13.3 2022 41.69 0.69 (4.79) (4.10) (0.62) (1.61) (2.23) 35.36 (10.32) (c) 7,731,338 0.52 (f) – 1.82 16.9 2021 30.71 0.64 10.95 11.59 (0.61) – (0.61) 41.69 37.97 (c) 9,001,763 0.52 (f) – 1.68 22.0 R-3 shares 2025 42.87 0.42 3.58 4.00 (0.50) (3.72) (4.22) 42.65 10.02 29,054 1.08 – 1.04 16.7 2024 32.97 0.57 10.14 10.71 (0.55) (0.26) (0.81) 42.87 32.79 29,118 1.08 – 1.46 16.3 2023 35.18 0.62 (0.88) (0.26) (0.60) (1.35) (1.95) 32.97 (1.05) 25,777 1.08 – 1.77 13.3 2022 41.49 0.48 (4.77) (4.29) (0.41) (1.61) (2.02) 35.18 (10.81) 30,045 1.08 – 1.27 16.9 2021 30.56 0.43 10.90 11.33 (0.40) – (0.40) 41.49 37.21 33,754 1.07 – 1.12 22.0 R-5 shares 2025 43.05 0.55 3.59 4.14 (0.63) (3.72) (4.35) 42.84 10.34 166,162 0.77 – 1.34 16.7 2024 33.10 0.71 10.17 10.88 (0.67) (0.26) (0.93) 43.05 33.21 129,846 0.77 – 1.80 16.3 2023 35.31 0.73 (0.88) (0.15) (0.71) (1.35) (2.06) 33.10 (0.73) 127,806 0.77 – 2.07 13.3 2022 41.64 0.60 (4.79) (4.19) (0.53) (1.61) (2.14) 35.31 (10.54) 147,468 0.77 – 1.57 16.9 2021 30.67 0.55 10.93 11.48 (0.51) – (0.51) 41.64 37.62 179,232 0.76 – 1.43 22.0 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (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. (d) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (e) Excludes expense reimbursement from Manager and/or Distributor. (f) Subject to Manager's contractual expense limit. 12

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![null013.jpg](ck0000898745-20260227_g76.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Tax Return of Capital Distribution Total Dividends and Distributions Net Asset Value, End of Period Total Return 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 FINISTERRE EMERGING MARKETS TOTAL RETURN BOND FUND Institutional shares 2025 $8.93 $0.68 $0.57 $1.25 ($0.56) $– $– ($0.56) $9.62 14.54% $810,064 0.84%(b) 7.43% 125.7% 2024 8.25 0.72 0.61 1.33 (0.65) – – (0.65) 8.93 16.48 660,597 0.85 (b) 8.18 172.3 2023 7.92 0.61 0.26 0.87 (0.54) – – (0.54) 8.25 10.97 447,683 0.85 (b) 7.02 139.8 2022 10.28 0.49 (2.21) (1.72) (0.64) – – (0.64) 7.92 (17.17) 378,572 0.84 (b) 5.24 117.4 2021 10.24 0.39 0.07 0.46 (0.29) (0.09) (0.04) (0.42) 10.28 4.47 770,197 0.85 (b) 3.69 170.3 (a) Calculated based on average shares outstanding during the period. (b) Subject to Manager's contractual expense limit. 13

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![null014.jpg](ck0000898745-20260227_g77.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Tax Return of Capital Distribution Total Dividends and Distributions Net Asset Value, End of Period Total Return 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 FINISTERRE EMERGING MARKETS TOTAL RETURN BOND FUND Institutional shares 2025 $8.93 $0.68 $0.57 $1.25 ($0.56) $– $– ($0.56) $9.62 14.54% $810,064 0.84%(b) 7.43% 125.7% 2024 8.25 0.72 0.61 1.33 (0.65) – – (0.65) 8.93 16.48 660,597 0.85 (b) 8.18 172.3 2023 7.92 0.61 0.26 0.87 (0.54) – – (0.54) 8.25 10.97 447,683 0.85 (b) 7.02 139.8 2022 10.28 0.49 (2.21) (1.72) (0.64) – – (0.64) 7.92 (17.17) 378,572 0.84 (b) 5.24 117.4 2021 10.24 0.39 0.07 0.46 (0.29) (0.09) (0.04) (0.42) 10.28 4.47 770,197 0.85 (b) 3.69 170.3 (a) Calculated based on average shares outstanding during the period. (b) Subject to Manager's contractual expense limit. 14

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![null015.jpg](ck0000898745-20260227_g78.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 GLOBAL EMERGING MARKETS FUND Class A shares 2025 $26.87 $0.25 $8.12 $8.37 $– $– $– $35.24 31.15%(b) $81,802 1.45%(c),(d) –% 0.86% 32.3% 2024 22.69 0.27 4.36 4.63 (0.45) – (0.45) 26.87 20.63 (b) 67,819 1.46 (c),(e) – 1.06 28.5 2023 20.06 0.28 2.59 2.87 (0.24) – (0.24) 22.69 14.33 (b) 63,629 1.47 (c) – 1.20 32.4 2022 31.87 0.37 (10.12) (9.75) (0.31) (1.75) (2.06) 20.06 (32.46) (b) 60,893 1.55 (c) – 1.44 34.7 2021 26.98 0.20 4.73 4.93 (0.04) – (0.04) 31.87 18.27 (b) 91,585 1.56 (c),(e) – 0.63 43.9 Class J shares 2025 25.70 0.28 7.76 8.04 (0.02) – (0.02) 33.72 31.30 (b) 94,926 1.31 (d),(f) 1.35 (g) 1.00 32.3 2024 21.72 0.30 4.17 4.47 (0.49) – (0.49) 25.70 20.84 (b) 71,586 1.31 (e),(f) 1.45 (g) 1.22 28.5 2023 19.23 0.30 2.47 2.77 (0.28) – (0.28) 21.72 14.46 (b) 65,679 1.31 (f) 1.59 (g) 1.35 32.4 2022 30.64 0.38 (9.67) (9.29) (0.37) (1.75) (2.12) 19.23 (32.31) (b) 61,730 1.37 (f) 1.52 (g) 1.58 34.7 2021 25.94 0.25 4.53 4.78 (0.08) – (0.08) 30.64 18.46 (b) 99,899 1.38 (e),(f) 1.48 (g) 0.80 43.9 Institutional shares 2025 26.57 0.36 8.00 8.36 (0.07) – (0.07) 34.86 31.57 51,112 1.11 (c),(d) – 1.25 32.3 2024 22.44 0.22 4.45 4.67 (0.54) – (0.54) 26.57 21.07 31,746 1.11 (c),(e) – 0.89 28.5 2023 19.86 0.36 2.54 2.90 (0.32) – (0.32) 22.44 14.66 67,145 1.12 (c) – 1.54 32.4 2022 31.58 0.47 (10.01) (9.54) (0.43) (1.75) (2.18) 19.86 (32.20) 60,449 1.20 (c) – 1.90 34.7 2021 26.72 0.32 4.66 4.98 (0.12) – (0.12) 31.58 18.66 73,485 1.21 (c),(e) – 0.98 43.9 R-3 shares 2025 26.49 0.22 7.99 8.21 – – – 34.70 30.99 6,676 1.56 (d) – 0.75 32.3 2024 22.37 0.22 4.31 4.53 (0.41) – (0.41) 26.49 20.45 3,762 1.63 (e) – 0.88 28.5 2023 19.79 0.23 2.56 2.79 (0.21) – (0.21) 22.37 14.10 4,132 1.66 – 1.00 32.4 2022 31.46 0.31 (9.96) (9.65) (0.27) (1.75) (2.02) 19.79 (32.54) 3,733 1.69 – 1.23 34.7 2021 26.64 0.17 4.65 4.82 – – – 31.46 18.09 6,358 1.68 (e) – 0.53 43.9 R-5 shares 2025 26.72 0.31 8.08 8.39 (0.04) – (0.04) 35.07 31.43 6,200 1.25 (d) – 1.07 32.3 2024 22.52 0.30 4.34 4.64 (0.44) – (0.44) 26.72 20.81 3,027 1.32 (e) – 1.20 28.5 2023 19.93 0.31 2.56 2.87 (0.28) – (0.28) 22.52 14.42 4,691 1.35 – 1.32 32.4 2022 31.66 0.40 (10.02) (9.62) (0.36) (1.75) (2.11) 19.93 (32.32) 4,563 1.38 – 1.60 34.7 2021 26.79 0.26 4.69 4.95 (0.08) – (0.08) 31.66 18.48 8,234 1.37 (e) – 0.79 43.9 R-6 shares 2025 26.62 0.37 8.04 8.41 (0.09) – (0.09) 34.94 31.70 5,299,251 1.00 (c),(d) – 1.25 32.3 2024 22.47 0.14 4.56 4.70 (0.55) – (0.55) 26.62 21.16 2,240,199 1.02 (c),(e) – 0.51 28.5 2023 19.88 0.35 2.58 2.93 (0.34) – (0.34) 22.47 14.81 3,961 1.04 (c) – 1.51 32.4 2022 31.60 0.44 (9.95) (9.51) (0.46) (1.75) (2.21) 19.88 (32.14) (h) 2,165 1.09 (c) – 1.71 34.7 2021 26.74 0.36 4.65 5.01 (0.15) – (0.15) 31.60 18.79 (h) 4,121 1.10 (c),(e) – 1.12 43.9 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit. (d) Includes 0.01% of expense associated with consulting fees. The expense is not subject to the Manager's contractual expense limit. (e) Includes 0.01% of expenses associated with the reclaim of foreign taxes paid. The expense is not subject to the Manager's contractual expense limit. (f) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (g) Excludes expense reimbursement from Manager and/or Distributor. (h) 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. 15

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![null016.jpg](ck0000898745-20260227_g79.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 GLOBAL EMERGING MARKETS FUND Class A shares 2025 $26.87 $0.25 $8.12 $8.37 $– $– $– $35.24 31.15%(b) $81,802 1.45%(c),(d) –% 0.86% 32.3% 2024 22.69 0.27 4.36 4.63 (0.45) – (0.45) 26.87 20.63 (b) 67,819 1.46 (c),(e) – 1.06 28.5 2023 20.06 0.28 2.59 2.87 (0.24) – (0.24) 22.69 14.33 (b) 63,629 1.47 (c) – 1.20 32.4 2022 31.87 0.37 (10.12) (9.75) (0.31) (1.75) (2.06) 20.06 (32.46) (b) 60,893 1.55 (c) – 1.44 34.7 2021 26.98 0.20 4.73 4.93 (0.04) – (0.04) 31.87 18.27 (b) 91,585 1.56 (c),(e) – 0.63 43.9 Class J shares 2025 25.70 0.28 7.76 8.04 (0.02) – (0.02) 33.72 31.30 (b) 94,926 1.31 (d),(f) 1.35 (g) 1.00 32.3 2024 21.72 0.30 4.17 4.47 (0.49) – (0.49) 25.70 20.84 (b) 71,586 1.31 (e),(f) 1.45 (g) 1.22 28.5 2023 19.23 0.30 2.47 2.77 (0.28) – (0.28) 21.72 14.46 (b) 65,679 1.31 (f) 1.59 (g) 1.35 32.4 2022 30.64 0.38 (9.67) (9.29) (0.37) (1.75) (2.12) 19.23 (32.31) (b) 61,730 1.37 (f) 1.52 (g) 1.58 34.7 2021 25.94 0.25 4.53 4.78 (0.08) – (0.08) 30.64 18.46 (b) 99,899 1.38 (e),(f) 1.48 (g) 0.80 43.9 Institutional shares 2025 26.57 0.36 8.00 8.36 (0.07) – (0.07) 34.86 31.57 51,112 1.11 (c),(d) – 1.25 32.3 2024 22.44 0.22 4.45 4.67 (0.54) – (0.54) 26.57 21.07 31,746 1.11 (c),(e) – 0.89 28.5 2023 19.86 0.36 2.54 2.90 (0.32) – (0.32) 22.44 14.66 67,145 1.12 (c) – 1.54 32.4 2022 31.58 0.47 (10.01) (9.54) (0.43) (1.75) (2.18) 19.86 (32.20) 60,449 1.20 (c) – 1.90 34.7 2021 26.72 0.32 4.66 4.98 (0.12) – (0.12) 31.58 18.66 73,485 1.21 (c),(e) – 0.98 43.9 R-3 shares 2025 26.49 0.22 7.99 8.21 – – – 34.70 30.99 6,676 1.56 (d) – 0.75 32.3 2024 22.37 0.22 4.31 4.53 (0.41) – (0.41) 26.49 20.45 3,762 1.63 (e) – 0.88 28.5 2023 19.79 0.23 2.56 2.79 (0.21) – (0.21) 22.37 14.10 4,132 1.66 – 1.00 32.4 2022 31.46 0.31 (9.96) (9.65) (0.27) (1.75) (2.02) 19.79 (32.54) 3,733 1.69 – 1.23 34.7 2021 26.64 0.17 4.65 4.82 – – – 31.46 18.09 6,358 1.68 (e) – 0.53 43.9 R-5 shares 2025 26.72 0.31 8.08 8.39 (0.04) – (0.04) 35.07 31.43 6,200 1.25 (d) – 1.07 32.3 2024 22.52 0.30 4.34 4.64 (0.44) – (0.44) 26.72 20.81 3,027 1.32 (e) – 1.20 28.5 2023 19.93 0.31 2.56 2.87 (0.28) – (0.28) 22.52 14.42 4,691 1.35 – 1.32 32.4 2022 31.66 0.40 (10.02) (9.62) (0.36) (1.75) (2.11) 19.93 (32.32) 4,563 1.38 – 1.60 34.7 2021 26.79 0.26 4.69 4.95 (0.08) – (0.08) 31.66 18.48 8,234 1.37 (e) – 0.79 43.9 R-6 shares 2025 26.62 0.37 8.04 8.41 (0.09) – (0.09) 34.94 31.70 5,299,251 1.00 (c),(d) – 1.25 32.3 2024 22.47 0.14 4.56 4.70 (0.55) – (0.55) 26.62 21.16 2,240,199 1.02 (c),(e) – 0.51 28.5 2023 19.88 0.35 2.58 2.93 (0.34) – (0.34) 22.47 14.81 3,961 1.04 (c) – 1.51 32.4 2022 31.60 0.44 (9.95) (9.51) (0.46) (1.75) (2.21) 19.88 (32.14) (h) 2,165 1.09 (c) – 1.71 34.7 2021 26.74 0.36 4.65 5.01 (0.15) – (0.15) 31.60 18.79 (h) 4,121 1.10 (c),(e) – 1.12 43.9 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit. (d) Includes 0.01% of expense associated with consulting fees. The expense is not subject to the Manager's contractual expense limit. (e) Includes 0.01% of expenses associated with the reclaim of foreign taxes paid. The expense is not subject to the Manager's contractual expense limit. (f) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (g) Excludes expense reimbursement from Manager and/or Distributor. (h) 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. 16

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![null017.jpg](ck0000898745-20260227_g80.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 GLOBAL REAL ESTATE SECURITIES FUND Class A shares 2025 $9.04 $0.16 ($0.04) $0.12 ($0.20) $– ($0.20) $8.96 1.47%(b) $48,016 1.36% 1.82% 22.1% 2024 7.25 0.16 1.83 1.99 (0.20) – (0.20) 9.04 27.66 (b) 58,008 1.33 (c) 1.95 27.5 2023 7.69 0.16 (0.54) (0.38) (0.06) – (0.06) 7.25 (4.98) (b) 55,011 1.36 2.01 24.3 2022 10.83 0.14 (3.03) (2.89) (0.21) (0.04) (0.25) 7.69 (27.34) (b) 82,943 1.31 1.45 16.8 2021 7.98 0.12 2.80 2.92 (0.07) – (0.07) 10.83 36.76 (b) 112,900 1.29 1.22 25.9 Institutional shares 2025 9.86 0.21 (0.04) 0.17 (0.23) – (0.23) 9.80 1.94 1,015,951 0.94 (d) 2.22 22.1 2024 7.90 0.21 1.99 2.20 (0.24) – (0.24) 9.86 28.08 1,044,659 0.95 (c),(d) 2.33 27.5 2023 8.37 0.21 (0.58) (0.37) (0.10) – (0.10) 7.90 (4.54) 1,090,278 0.94 (d) 2.43 24.3 2022 11.76 0.19 (3.30) (3.11) (0.24) (0.04) (0.28) 8.37 (27.10) 1,422,719 0.94 (d) 1.79 16.8 2021 8.64 0.16 3.04 3.20 (0.08) – (0.08) 11.76 37.21 2,394,983 0.94 (d) 1.53 25.9 R-3 shares 2025 9.78 0.19 (0.08) 0.11 (0.21) – (0.21) 9.68 1.27 498 1.46 2.02 22.1 2024 7.84 0.15 2.00 2.15 (0.21) – (0.21) 9.78 27.53 1,846 1.46 (c) 1.62 27.5 2023 8.31 0.16 (0.58) (0.42) (0.05) – (0.05) 7.84 (5.13) 724 1.45 1.88 24.3 2022 11.68 0.13 (3.26) (3.13) (0.20) (0.04) (0.24) 8.31 (27.40) 578 1.45 1.27 16.8 2021 8.61 0.12 3.02 3.14 (0.07) – (0.07) 11.68 36.57 544 1.44 1.11 25.9 R-5 shares 2025 9.83 0.19 (0.04) 0.15 (0.22) – (0.22) 9.76 1.66 10,798 1.15 2.01 22.1 2024 7.87 0.20 1.99 2.19 (0.23) – (0.23) 9.83 27.97 8,510 1.15 (c) 2.13 27.5 2023 8.35 0.19 (0.59) (0.40) (0.08) – (0.08) 7.87 (4.84) 6,431 1.14 2.24 24.3 2022 11.74 0.18 (3.28) (3.10) (0.25) (0.04) (0.29) 8.35 (27.13) 5,935 1.14 1.79 16.8 2021 8.64 0.14 3.03 3.17 (0.07) – (0.07) 11.74 36.91 353 1.13 1.27 25.9 R-6 shares 2025 9.87 0.22 (0.04) 0.18 (0.24) – (0.24) 9.81 2.00 524,726 0.90 2.33 22.1 2024 7.91 0.22 1.99 2.21 (0.25) – (0.25) 9.87 28.27 (e) 721,279 0.90 (c) 2.39 27.5 2023 8.38 0.22 (0.59) (0.37) (0.10) – (0.10) 7.91 (4.59) (e) 650,870 0.89 2.47 24.3 2022 11.77 0.19 (3.29) (3.10) (0.25) (0.04) (0.29) 8.38 (27.02) 707,703 0.88 (d) 1.84 16.8 2021 8.64 0.17 3.04 3.21 (0.08) – (0.08) 11.77 37.35 1,585,562 0.87 (d) 1.59 25.9 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Includes 0.01% of interest expense associated with borrowings. The expense is not subject to the Manager's contractual expense limit. (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. 17

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![null018.jpg](ck0000898745-20260227_g81.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 GLOBAL REAL ESTATE SECURITIES FUND Class A shares 2025 $9.04 $0.16 ($0.04) $0.12 ($0.20) $– ($0.20) $8.96 1.47%(b) $48,016 1.36% 1.82% 22.1% 2024 7.25 0.16 1.83 1.99 (0.20) – (0.20) 9.04 27.66 (b) 58,008 1.33 (c) 1.95 27.5 2023 7.69 0.16 (0.54) (0.38) (0.06) – (0.06) 7.25 (4.98) (b) 55,011 1.36 2.01 24.3 2022 10.83 0.14 (3.03) (2.89) (0.21) (0.04) (0.25) 7.69 (27.34) (b) 82,943 1.31 1.45 16.8 2021 7.98 0.12 2.80 2.92 (0.07) – (0.07) 10.83 36.76 (b) 112,900 1.29 1.22 25.9 Institutional shares 2025 9.86 0.21 (0.04) 0.17 (0.23) – (0.23) 9.80 1.94 1,015,951 0.94 (d) 2.22 22.1 2024 7.90 0.21 1.99 2.20 (0.24) – (0.24) 9.86 28.08 1,044,659 0.95 (c),(d) 2.33 27.5 2023 8.37 0.21 (0.58) (0.37) (0.10) – (0.10) 7.90 (4.54) 1,090,278 0.94 (d) 2.43 24.3 2022 11.76 0.19 (3.30) (3.11) (0.24) (0.04) (0.28) 8.37 (27.10) 1,422,719 0.94 (d) 1.79 16.8 2021 8.64 0.16 3.04 3.20 (0.08) – (0.08) 11.76 37.21 2,394,983 0.94 (d) 1.53 25.9 R-3 shares 2025 9.78 0.19 (0.08) 0.11 (0.21) – (0.21) 9.68 1.27 498 1.46 2.02 22.1 2024 7.84 0.15 2.00 2.15 (0.21) – (0.21) 9.78 27.53 1,846 1.46 (c) 1.62 27.5 2023 8.31 0.16 (0.58) (0.42) (0.05) – (0.05) 7.84 (5.13) 724 1.45 1.88 24.3 2022 11.68 0.13 (3.26) (3.13) (0.20) (0.04) (0.24) 8.31 (27.40) 578 1.45 1.27 16.8 2021 8.61 0.12 3.02 3.14 (0.07) – (0.07) 11.68 36.57 544 1.44 1.11 25.9 R-5 shares 2025 9.83 0.19 (0.04) 0.15 (0.22) – (0.22) 9.76 1.66 10,798 1.15 2.01 22.1 2024 7.87 0.20 1.99 2.19 (0.23) – (0.23) 9.83 27.97 8,510 1.15 (c) 2.13 27.5 2023 8.35 0.19 (0.59) (0.40) (0.08) – (0.08) 7.87 (4.84) 6,431 1.14 2.24 24.3 2022 11.74 0.18 (3.28) (3.10) (0.25) (0.04) (0.29) 8.35 (27.13) 5,935 1.14 1.79 16.8 2021 8.64 0.14 3.03 3.17 (0.07) – (0.07) 11.74 36.91 353 1.13 1.27 25.9 R-6 shares 2025 9.87 0.22 (0.04) 0.18 (0.24) – (0.24) 9.81 2.00 524,726 0.90 2.33 22.1 2024 7.91 0.22 1.99 2.21 (0.25) – (0.25) 9.87 28.27 (e) 721,279 0.90 (c) 2.39 27.5 2023 8.38 0.22 (0.59) (0.37) (0.10) – (0.10) 7.91 (4.59) (e) 650,870 0.89 2.47 24.3 2022 11.77 0.19 (3.29) (3.10) (0.25) (0.04) (0.29) 8.38 (27.02) 707,703 0.88 (d) 1.84 16.8 2021 8.64 0.17 3.04 3.21 (0.08) – (0.08) 11.77 37.35 1,585,562 0.87 (d) 1.59 25.9 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Includes 0.01% of interest expense associated with borrowings. The expense is not subject to the Manager's contractual expense limit. (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. 18

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![null019.jpg](ck0000898745-20260227_g82.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 GOVERNMENT & HIGH QUALITY BOND FUND Class A shares 2025 $8.89 $0.32 $0.26 $0.58 ($0.31) ($0.31) $9.16 6.67%(b) $134,176 0.80% –% 3.54% 268.0% 2024 8.26 0.24 0.64 0.88 (0.25) (0.25) 8.89 10.66 (b) 141,861 0.81 – 2.72 233.7 2023 8.62 0.20 (0.33) (0.13) (0.23) (0.23) 8.26 (1.65) (b) 145,881 0.85 – 2.30 128.0 2022 10.32 0.09 (1.66) (1.57) (0.13) (0.13) 8.62 (15.37) (b) 172,969 0.78 – 0.94 352.1 2021 10.59 0.03 (0.18) (0.15) (0.12) (0.12) 10.32 (1.44) (b) 229,225 0.77 – 0.32 343.7 Class J shares 2025 8.92 0.31 0.25 0.56 (0.30) (0.30) 9.18 6.45 (b) 68,322 0.87 (c) 0.87 (d) 3.46 268.0 2024 8.28 0.24 0.64 0.88 (0.24) (0.24) 8.92 10.72 (b) 68,059 0.83 (c) 0.85 (d) 2.69 233.7 2023 8.64 0.20 (0.34) (0.14) (0.22) (0.22) 8.28 (1.71) (b) 68,323 0.91 (c) 0.93 (d) 2.24 128.0 2022 10.35 0.09 (1.68) (1.59) (0.12) (0.12) 8.64 (15.46) (b) 77,181 0.82 (c) 0.84 (d) 0.90 352.1 2021 10.62 0.03 (0.19) (0.16) (0.11) (0.11) 10.35 (1.47) (b) 99,128 0.80 (c) 0.83 (d) 0.29 343.7 Institutional shares 2025 8.91 0.34 0.26 0.60 (0.34) (0.34) 9.17 6.82 410,206 0.53 (e) – 3.80 268.0 2024 8.28 0.27 0.63 0.90 (0.27) (0.27) 8.91 10.93 444,116 0.53 (e) – 2.99 233.7 2023 8.63 0.23 (0.32) (0.09) (0.26) (0.26) 8.28 (1.22) 393,944 0.53 (e) – 2.62 128.0 2022 10.34 0.11 (1.67) (1.56) (0.15) (0.15) 8.63 (15.22) 500,833 0.52 (e) – 1.18 352.1 2021 10.61 0.06 (0.19) (0.13) (0.14) (0.14) 10.34 (1.19) 770,058 0.52 (e) – 0.58 343.7 R-3 shares 2025 8.92 0.30 0.25 0.55 (0.29) (0.29) 9.18 6.34 3,816 0.98 (e) – 3.36 268.0 2024 8.28 0.23 0.64 0.87 (0.23) (0.23) 8.92 10.56 2,736 0.98 (e) – 2.54 233.7 2023 8.64 0.19 (0.33) (0.14) (0.22) (0.22) 8.28 (1.78) 3,034 0.98 (e) – 2.17 128.0 2022 10.34 0.07 (1.66) (1.59) (0.11) (0.11) 8.64 (15.51) 3,656 0.98 (e) – 0.73 352.1 2021 10.62 0.01 (0.19) (0.18) (0.10) (0.10) 10.34 (1.74) 5,493 0.98 (e) – 0.11 343.7 R-5 shares 2025 8.92 0.33 0.26 0.59 (0.32) (0.32) 9.19 6.78 7,974 0.67 (e) – 3.67 268.0 2024 8.29 0.25 0.64 0.89 (0.26) (0.26) 8.92 10.77 5,868 0.67 (e) – 2.86 233.7 2023 8.64 0.22 (0.32) (0.10) (0.25) (0.25) 8.29 (1.36) 8,534 0.67 (e) – 2.48 128.0 2022 10.35 0.10 (1.67) (1.57) (0.14) (0.14) 8.64 (15.33) 8,761 0.67 (e) – 1.02 352.1 2021 10.62 0.05 (0.19) (0.14) (0.13) (0.13) 10.35 (1.34) 16,336 0.67 (e) – 0.43 343.7 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 19

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![null020.jpg](ck0000898745-20260227_g83.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 GOVERNMENT & HIGH QUALITY BOND FUND Class A shares 2025 $8.89 $0.32 $0.26 $0.58 ($0.31) ($0.31) $9.16 6.67%(b) $134,176 0.80% –% 3.54% 268.0% 2024 8.26 0.24 0.64 0.88 (0.25) (0.25) 8.89 10.66 (b) 141,861 0.81 – 2.72 233.7 2023 8.62 0.20 (0.33) (0.13) (0.23) (0.23) 8.26 (1.65) (b) 145,881 0.85 – 2.30 128.0 2022 10.32 0.09 (1.66) (1.57) (0.13) (0.13) 8.62 (15.37) (b) 172,969 0.78 – 0.94 352.1 2021 10.59 0.03 (0.18) (0.15) (0.12) (0.12) 10.32 (1.44) (b) 229,225 0.77 – 0.32 343.7 Class J shares 2025 8.92 0.31 0.25 0.56 (0.30) (0.30) 9.18 6.45 (b) 68,322 0.87 (c) 0.87 (d) 3.46 268.0 2024 8.28 0.24 0.64 0.88 (0.24) (0.24) 8.92 10.72 (b) 68,059 0.83 (c) 0.85 (d) 2.69 233.7 2023 8.64 0.20 (0.34) (0.14) (0.22) (0.22) 8.28 (1.71) (b) 68,323 0.91 (c) 0.93 (d) 2.24 128.0 2022 10.35 0.09 (1.68) (1.59) (0.12) (0.12) 8.64 (15.46) (b) 77,181 0.82 (c) 0.84 (d) 0.90 352.1 2021 10.62 0.03 (0.19) (0.16) (0.11) (0.11) 10.35 (1.47) (b) 99,128 0.80 (c) 0.83 (d) 0.29 343.7 Institutional shares 2025 8.91 0.34 0.26 0.60 (0.34) (0.34) 9.17 6.82 410,206 0.53 (e) – 3.80 268.0 2024 8.28 0.27 0.63 0.90 (0.27) (0.27) 8.91 10.93 444,116 0.53 (e) – 2.99 233.7 2023 8.63 0.23 (0.32) (0.09) (0.26) (0.26) 8.28 (1.22) 393,944 0.53 (e) – 2.62 128.0 2022 10.34 0.11 (1.67) (1.56) (0.15) (0.15) 8.63 (15.22) 500,833 0.52 (e) – 1.18 352.1 2021 10.61 0.06 (0.19) (0.13) (0.14) (0.14) 10.34 (1.19) 770,058 0.52 (e) – 0.58 343.7 R-3 shares 2025 8.92 0.30 0.25 0.55 (0.29) (0.29) 9.18 6.34 3,816 0.98 (e) – 3.36 268.0 2024 8.28 0.23 0.64 0.87 (0.23) (0.23) 8.92 10.56 2,736 0.98 (e) – 2.54 233.7 2023 8.64 0.19 (0.33) (0.14) (0.22) (0.22) 8.28 (1.78) 3,034 0.98 (e) – 2.17 128.0 2022 10.34 0.07 (1.66) (1.59) (0.11) (0.11) 8.64 (15.51) 3,656 0.98 (e) – 0.73 352.1 2021 10.62 0.01 (0.19) (0.18) (0.10) (0.10) 10.34 (1.74) 5,493 0.98 (e) – 0.11 343.7 R-5 shares 2025 8.92 0.33 0.26 0.59 (0.32) (0.32) 9.19 6.78 7,974 0.67 (e) – 3.67 268.0 2024 8.29 0.25 0.64 0.89 (0.26) (0.26) 8.92 10.77 5,868 0.67 (e) – 2.86 233.7 2023 8.64 0.22 (0.32) (0.10) (0.25) (0.25) 8.29 (1.36) 8,534 0.67 (e) – 2.48 128.0 2022 10.35 0.10 (1.67) (1.57) (0.14) (0.14) 8.64 (15.33) 8,761 0.67 (e) – 1.02 352.1 2021 10.62 0.05 (0.19) (0.14) (0.13) (0.13) 10.35 (1.34) 16,336 0.67 (e) – 0.43 343.7 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 20

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![null021.jpg](ck0000898745-20260227_g84.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 GOVERNMENT MONEY MARKET FUND Institutional shares 2025 $1.00 $0.04 $– $0.04 ($0.04) ($0.04) $1.00 4.28% $746,786 0.19%(b) 0.21%(c) 4.15% 2024 1.00 0.05 – 0.05 (0.05) (0.05) 1.00 5.25 352,741 0.19 (b) 0.21 (c) 5.11 2023 1.00 0.04 0.01 0.05 (0.05) (0.05) 1.00 4.71 191,888 0.15 (b) 0.16 (c) 3.71 2022 1.00 0.01 – 0.01 (0.01) (0.01) 1.00 0.81 2,979,627 0.14 (b) 0.15 (c) 0.73 2021 1.00 – – – – – 1.00 0.00 3,657,679 0.04 (b) 0.16 (c) 0.00 R-6 shares 2025 1.00 0.04 – 0.04 (0.04) (0.04) 1.00 4.33 4,133,987 0.14 (b) 0.16 (c) 4.22 2024 1.00 0.05 – 0.05 (0.05) (0.05) 1.00 5.31 3,389,284 0.14 (b) 0.16 (c) 5.17 2023(d) 1.00 0.04 – 0.04 (0.04) (0.04) 1.00 4.35 (e) 2,582,939 0.14 (b),(f) 0.16 (c),(f) 4.80 (f) (a) Calculated based on average shares outstanding during the period. (b) Subject to Manager's contractual and/or voluntary expense limit. (c) Excludes expense reimbursement from Manager. (d) Period from December 12, 2022, date operations commenced, through October 31, 2023. (e) Total return amounts have not been annualized. (f) Computed on an annualized basis. 21

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![null022.jpg](ck0000898745-20260227_g85.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 GOVERNMENT MONEY MARKET FUND Institutional shares 2025 $1.00 $0.04 $– $0.04 ($0.04) ($0.04) $1.00 4.28% $746,786 0.19%(b) 0.21%(c) 4.15% 2024 1.00 0.05 – 0.05 (0.05) (0.05) 1.00 5.25 352,741 0.19 (b) 0.21 (c) 5.11 2023 1.00 0.04 0.01 0.05 (0.05) (0.05) 1.00 4.71 191,888 0.15 (b) 0.16 (c) 3.71 2022 1.00 0.01 – 0.01 (0.01) (0.01) 1.00 0.81 2,979,627 0.14 (b) 0.15 (c) 0.73 2021 1.00 – – – – – 1.00 0.00 3,657,679 0.04 (b) 0.16 (c) 0.00 R-6 shares 2025 1.00 0.04 – 0.04 (0.04) (0.04) 1.00 4.33 4,133,987 0.14 (b) 0.16 (c) 4.22 2024 1.00 0.05 – 0.05 (0.05) (0.05) 1.00 5.31 3,389,284 0.14 (b) 0.16 (c) 5.17 2023(d) 1.00 0.04 – 0.04 (0.04) (0.04) 1.00 4.35 (e) 2,582,939 0.14 (b),(f) 0.16 (c),(f) 4.80 (f) (a) Calculated based on average shares outstanding during the period. (b) Subject to Manager's contractual and/or voluntary expense limit. (c) Excludes expense reimbursement from Manager. (d) Period from December 12, 2022, date operations commenced, through October 31, 2023. (e) Total return amounts have not been annualized. (f) Computed on an annualized basis. 22

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![null023.jpg](ck0000898745-20260227_g86.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 HIGH YIELD FUND Class A shares 2025 $6.83 $0.43 ($0.03) $0.40 ($0.44) ($0.44) $6.79 6.04%(b) $398,406 0.89% 6.32% 40.3% 2024 6.31 0.42 0.52 0.94 (0.42) (0.42) 6.83 15.15 (b) 421,065 0.91 6.22 39.1 2023 6.29 0.37 0.03 0.40 (0.38) (0.38) 6.31 6.31 (b) 414,017 0.94 5.70 28.0 2022 7.33 0.32 (1.02) (0.70) (0.34) (0.34) 6.29 (9.71) (b) 426,999 0.91 4.74 33.1 2021 7.01 0.32 0.35 0.67 (0.35) (0.35) 7.33 9.64 (b) 539,969 0.91 4.44 63.0 Class C shares 2025 6.93 0.38 (0.03) 0.35 (0.38) (0.38) 6.90 5.26 (b) 19,944 1.68 5.54 40.3 2024 6.40 0.37 0.53 0.90 (0.37) (0.37) 6.93 14.21 (b) 24,716 1.69 5.44 39.1 2023 6.38 0.32 0.02 0.34 (0.32) (0.32) 6.40 5.37 (b) 29,469 1.75 4.88 28.0 2022 7.43 0.27 (1.03) (0.76) (0.29) (0.29) 6.38 (10.42) (b) 39,928 1.69 3.94 33.1 2021 7.10 0.28 0.34 0.62 (0.29) (0.29) 7.43 8.87 (b) 62,973 1.64 3.74 63.0 Institutional shares 2025 6.76 0.44 (0.02) 0.42 (0.46) (0.46) 6.72 6.41 1,413,016 0.60 (c) 6.60 40.3 2024 6.25 0.43 0.52 0.95 (0.44) (0.44) 6.76 15.48 1,359,544 0.61 (c) 6.52 39.1 2023 6.24 0.39 0.02 0.41 (0.40) (0.40) 6.25 6.55 1,183,194 0.61 (c) 6.03 28.0 2022 7.27 0.34 (1.01) (0.67) (0.36) (0.36) 6.24 (9.50) (d) 1,140,046 0.61 (c) 5.04 33.1 2021 6.96 0.34 0.34 0.68 (0.37) (0.37) 7.27 10.05 (d) 1,535,963 0.61 (c) 4.73 63.0 R-6 shares 2025 6.76 0.45 (0.02) 0.43 (0.47) (0.47) 6.72 6.51 4,828,028 0.51 6.70 40.3 2024 6.25 0.44 0.51 0.95 (0.44) (0.44) 6.76 15.57 4,045,178 0.53 6.56 39.1 2023 6.24 0.39 0.02 0.41 (0.40) (0.40) 6.25 6.64 687,216 0.53 6.13 28.0 2022 7.27 0.35 (1.01) (0.66) (0.37) (0.37) 6.24 (9.42) (d) 557,144 0.52 5.12 33.1 2021 6.96 0.35 0.34 0.69 (0.38) (0.38) 7.27 10.15 (d) 757,781 0.52 (c) 4.84 63.0 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit. (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. 23

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![null024.jpg](ck0000898745-20260227_g87.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 HIGH YIELD FUND Class A shares 2025 $6.83 $0.43 ($0.03) $0.40 ($0.44) ($0.44) $6.79 6.04%(b) $398,406 0.89% 6.32% 40.3% 2024 6.31 0.42 0.52 0.94 (0.42) (0.42) 6.83 15.15 (b) 421,065 0.91 6.22 39.1 2023 6.29 0.37 0.03 0.40 (0.38) (0.38) 6.31 6.31 (b) 414,017 0.94 5.70 28.0 2022 7.33 0.32 (1.02) (0.70) (0.34) (0.34) 6.29 (9.71) (b) 426,999 0.91 4.74 33.1 2021 7.01 0.32 0.35 0.67 (0.35) (0.35) 7.33 9.64 (b) 539,969 0.91 4.44 63.0 Class C shares 2025 6.93 0.38 (0.03) 0.35 (0.38) (0.38) 6.90 5.26 (b) 19,944 1.68 5.54 40.3 2024 6.40 0.37 0.53 0.90 (0.37) (0.37) 6.93 14.21 (b) 24,716 1.69 5.44 39.1 2023 6.38 0.32 0.02 0.34 (0.32) (0.32) 6.40 5.37 (b) 29,469 1.75 4.88 28.0 2022 7.43 0.27 (1.03) (0.76) (0.29) (0.29) 6.38 (10.42) (b) 39,928 1.69 3.94 33.1 2021 7.10 0.28 0.34 0.62 (0.29) (0.29) 7.43 8.87 (b) 62,973 1.64 3.74 63.0 Institutional shares 2025 6.76 0.44 (0.02) 0.42 (0.46) (0.46) 6.72 6.41 1,413,016 0.60 (c) 6.60 40.3 2024 6.25 0.43 0.52 0.95 (0.44) (0.44) 6.76 15.48 1,359,544 0.61 (c) 6.52 39.1 2023 6.24 0.39 0.02 0.41 (0.40) (0.40) 6.25 6.55 1,183,194 0.61 (c) 6.03 28.0 2022 7.27 0.34 (1.01) (0.67) (0.36) (0.36) 6.24 (9.50) (d) 1,140,046 0.61 (c) 5.04 33.1 2021 6.96 0.34 0.34 0.68 (0.37) (0.37) 7.27 10.05 (d) 1,535,963 0.61 (c) 4.73 63.0 R-6 shares 2025 6.76 0.45 (0.02) 0.43 (0.47) (0.47) 6.72 6.51 4,828,028 0.51 6.70 40.3 2024 6.25 0.44 0.51 0.95 (0.44) (0.44) 6.76 15.57 4,045,178 0.53 6.56 39.1 2023 6.24 0.39 0.02 0.41 (0.40) (0.40) 6.25 6.64 687,216 0.53 6.13 28.0 2022 7.27 0.35 (1.01) (0.66) (0.37) (0.37) 6.24 (9.42) (d) 557,144 0.52 5.12 33.1 2021 6.96 0.35 0.34 0.69 (0.38) (0.38) 7.27 10.15 (d) 757,781 0.52 (c) 4.84 63.0 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit. (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. 24

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![null025.jpg](ck0000898745-20260227_g88.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 INFLATION PROTECTION FUND Class J shares 2025 $7.40 $0.29 $0.08 $0.37 ($0.23) $– ($0.23) $7.54 5.20%(b) $11,859 0.79%(c) 0.79%(d) 4.00% 155.4% 2024 7.09 0.23 0.33 0.56 (0.25) – (0.25) 7.40 7.94 (b) 11,483 0.73 (c) 0.75 (d) 3.13 109.6 2023 7.63 0.25 (0.33) (0.08) (0.46) – (0.46) 7.09 (1.18) (b) 13,956 0.78 (c) 0.80 (d) 3.37 106.3 2022 9.31 0.53 (1.56) (1.03) (0.36) (0.29) (0.65) 7.63 (11.90) (b) 18,034 0.73 (c) 0.75 (d) 6.29 108.3 2021 8.83 0.28 0.24 0.52 (0.04) – (0.04) 9.31 5.85 (b) 16,550 0.85 (c) 0.87 (d) 3.04 67.7 Institutional shares 2025 7.88 0.34 0.10 0.44 (0.26) – (0.26) 8.06 5.78 2,364,710 0.38 – 4.38 155.4 2024 7.54 0.29 0.33 0.62 (0.28) – (0.28) 7.88 8.29 2,218,800 0.39 – 3.68 109.6 2023 8.09 0.30 (0.36) (0.06) (0.49) – (0.49) 7.54 (0.86) 1,447,786 0.40 – 3.78 106.3 2022 9.83 0.56 (1.62) (1.06) (0.39) (0.29) (0.68) 8.09 (11.61) 1,616,313 0.39 – 6.34 108.3 2021 9.29 0.29 0.30 0.59 (0.05) – (0.05) 9.83 6.33 1,471,415 0.39 – 3.03 67.7 R-3 shares 2025 7.43 0.28 0.10 0.38 (0.22) – (0.22) 7.59 5.26 4,557 0.95 – 3.82 155.4 2024 7.13 0.22 0.31 0.53 (0.23) – (0.23) 7.43 7.54 4,656 0.96 – 2.97 109.6 2023 7.67 0.22 (0.31) (0.09) (0.45) – (0.45) 7.13 (1.31) 4,708 0.96 – 3.00 106.3 2022 9.34 0.50 (1.55) (1.05) (0.33) (0.29) (0.62) 7.67 (12.09) 6,749 0.96 – 5.90 108.3 2021 8.86 0.25 0.26 0.51 (0.03) – (0.03) 9.34 5.80 7,120 0.96 – 2.76 67.7 R-5 shares 2025 7.71 0.32 0.07 0.39 (0.24) – (0.24) 7.86 5.34 3,347 0.64 – 4.16 155.4 2024 7.35 0.25 0.34 0.59 (0.23) – (0.23) 7.71 8.15 1,719 0.65 – 3.24 109.6 2023 7.90 0.27 (0.35) (0.08) (0.47) – (0.47) 7.35 (1.14) 3,492 0.65 – 3.48 106.3 2022 9.62 0.54 (1.60) (1.06) (0.37) (0.29) (0.66) 7.90 (11.83) 4,251 0.65 – 6.26 108.3 2021 9.10 0.29 0.27 0.56 (0.04) – (0.04) 9.62 6.16 4,114 0.65 – 3.06 67.7 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. 25

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![null026.jpg](ck0000898745-20260227_g89.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 INFLATION PROTECTION FUND Class J shares 2025 $7.40 $0.29 $0.08 $0.37 ($0.23) $– ($0.23) $7.54 5.20%(b) $11,859 0.79%(c) 0.79%(d) 4.00% 155.4% 2024 7.09 0.23 0.33 0.56 (0.25) – (0.25) 7.40 7.94 (b) 11,483 0.73 (c) 0.75 (d) 3.13 109.6 2023 7.63 0.25 (0.33) (0.08) (0.46) – (0.46) 7.09 (1.18) (b) 13,956 0.78 (c) 0.80 (d) 3.37 106.3 2022 9.31 0.53 (1.56) (1.03) (0.36) (0.29) (0.65) 7.63 (11.90) (b) 18,034 0.73 (c) 0.75 (d) 6.29 108.3 2021 8.83 0.28 0.24 0.52 (0.04) – (0.04) 9.31 5.85 (b) 16,550 0.85 (c) 0.87 (d) 3.04 67.7 Institutional shares 2025 7.88 0.34 0.10 0.44 (0.26) – (0.26) 8.06 5.78 2,364,710 0.38 – 4.38 155.4 2024 7.54 0.29 0.33 0.62 (0.28) – (0.28) 7.88 8.29 2,218,800 0.39 – 3.68 109.6 2023 8.09 0.30 (0.36) (0.06) (0.49) – (0.49) 7.54 (0.86) 1,447,786 0.40 – 3.78 106.3 2022 9.83 0.56 (1.62) (1.06) (0.39) (0.29) (0.68) 8.09 (11.61) 1,616,313 0.39 – 6.34 108.3 2021 9.29 0.29 0.30 0.59 (0.05) – (0.05) 9.83 6.33 1,471,415 0.39 – 3.03 67.7 R-3 shares 2025 7.43 0.28 0.10 0.38 (0.22) – (0.22) 7.59 5.26 4,557 0.95 – 3.82 155.4 2024 7.13 0.22 0.31 0.53 (0.23) – (0.23) 7.43 7.54 4,656 0.96 – 2.97 109.6 2023 7.67 0.22 (0.31) (0.09) (0.45) – (0.45) 7.13 (1.31) 4,708 0.96 – 3.00 106.3 2022 9.34 0.50 (1.55) (1.05) (0.33) (0.29) (0.62) 7.67 (12.09) 6,749 0.96 – 5.90 108.3 2021 8.86 0.25 0.26 0.51 (0.03) – (0.03) 9.34 5.80 7,120 0.96 – 2.76 67.7 R-5 shares 2025 7.71 0.32 0.07 0.39 (0.24) – (0.24) 7.86 5.34 3,347 0.64 – 4.16 155.4 2024 7.35 0.25 0.34 0.59 (0.23) – (0.23) 7.71 8.15 1,719 0.65 – 3.24 109.6 2023 7.90 0.27 (0.35) (0.08) (0.47) – (0.47) 7.35 (1.14) 3,492 0.65 – 3.48 106.3 2022 9.62 0.54 (1.60) (1.06) (0.37) (0.29) (0.66) 7.90 (11.83) 4,251 0.65 – 6.26 108.3 2021 9.10 0.29 0.27 0.56 (0.04) – (0.04) 9.62 6.16 4,114 0.65 – 3.06 67.7 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. 26

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![null027.jpg](ck0000898745-20260227_g90.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 INTERNATIONAL EQUITY FUND Institutional shares 2025 $14.60 $0.23 $3.28 $3.51 ($0.47) ($1.30) ($1.77) $16.34 27.59% $19,871 0.77%(b) 1.63% 96.3% 2024 12.01 0.29 2.70 2.99 (0.40) – (0.40) 14.60 25.19 18,176 0.81 (b),(c) 2.12 158.0 2023 11.24 0.38 0.74 1.12 (0.35) – (0.35) 12.01 10.06 88,447 0.92 (b),(d) 2.98 65.8 2022 18.41 0.41 (5.23) (4.82) (0.41) (1.94) (2.35) 11.24 (29.86) 88,476 0.87 (b) 2.93 60.5 2021 15.19 0.44 3.88 4.32 (0.21) (0.89) (1.10) 18.41 29.33 133,135 0.90 (b) 2.43 55.0 R-3 shares 2025 14.59 0.18 3.25 3.43 (0.47) (1.30) (1.77) 16.25 27.02 2,879 1.20 1.24 96.3 2024 11.99 0.22 2.70 2.92 (0.32) – (0.32) 14.59 24.58 1,110 1.29 (c) 1.56 158.0 2023 11.21 0.31 0.75 1.06 (0.28) – (0.28) 11.99 9.50 969 1.40 (d) 2.45 65.8 2022 18.35 0.34 (5.22) (4.88) (0.32) (1.94) (2.26) 11.21 (30.14) 1,649 1.34 2.40 60.5 2021 15.15 0.38 3.85 4.23 (0.14) (0.89) (1.03) 18.35 28.72 3,029 1.36 2.11 55.0 R-5 shares 2025 14.62 0.23 3.26 3.49 (0.48) (1.30) (1.78) 16.33 27.40 3,473 0.89 1.55 96.3 2024 12.02 0.27 2.70 2.97 (0.37) – (0.37) 14.62 25.06 2,462 0.98 (c) 1.92 158.0 2023 11.26 0.40 0.70 1.10 (0.34) – (0.34) 12.02 9.81 2,058 1.09 (d) 3.09 65.8 2022 18.39 0.38 (5.23) (4.85) (0.34) (1.94) (2.28) 11.26 (29.95) 487 1.03 2.73 60.5 2021 15.17 0.40 3.90 4.30 (0.19) (0.89) (1.08) 18.39 29.12 (e) 755 1.05 2.21 55.0 R-6 shares 2025 14.60 0.35 3.17 3.52 (0.51) (1.30) (1.81) 16.31 27.75 6,504,278 0.62 (b) 2.35 96.3 2024 12.01 0.31 2.69 3.00 (0.41) – (0.41) 14.60 25.30 208,314 0.71 (b),(c) 2.21 158.0 2023 11.25 0.39 0.74 1.13 (0.37) – (0.37) 12.01 10.09 180,658 0.82 (b),(d) 3.09 65.8 2022 18.41 0.42 (5.22) (4.80) (0.42) (1.94) (2.36) 11.25 (29.73) 181,468 0.76 (b) 3.06 60.5 2021 15.19 0.45 3.89 4.34 (0.23) (0.89) (1.12) 18.41 29.47 204,338 0.79 (b) 2.51 55.0 (a) Calculated based on average shares outstanding during the period. (b) Subject to Manager's contractual expense limit. (c) Includes 0.02% of expenses associated with the reclaim of foreign taxes paid. The expense is not subject to the Manager's contractual expense limit. (d) Includes 0.13% of expenses associated with the reclaim of foreign taxes paid. The expense is not subject to the 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. 27

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![null028.jpg](ck0000898745-20260227_g91.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 INTERNATIONAL EQUITY FUND Institutional shares 2025 $14.60 $0.23 $3.28 $3.51 ($0.47) ($1.30) ($1.77) $16.34 27.59% $19,871 0.77%(b) 1.63% 96.3% 2024 12.01 0.29 2.70 2.99 (0.40) – (0.40) 14.60 25.19 18,176 0.81 (b),(c) 2.12 158.0 2023 11.24 0.38 0.74 1.12 (0.35) – (0.35) 12.01 10.06 88,447 0.92 (b),(d) 2.98 65.8 2022 18.41 0.41 (5.23) (4.82) (0.41) (1.94) (2.35) 11.24 (29.86) 88,476 0.87 (b) 2.93 60.5 2021 15.19 0.44 3.88 4.32 (0.21) (0.89) (1.10) 18.41 29.33 133,135 0.90 (b) 2.43 55.0 R-3 shares 2025 14.59 0.18 3.25 3.43 (0.47) (1.30) (1.77) 16.25 27.02 2,879 1.20 1.24 96.3 2024 11.99 0.22 2.70 2.92 (0.32) – (0.32) 14.59 24.58 1,110 1.29 (c) 1.56 158.0 2023 11.21 0.31 0.75 1.06 (0.28) – (0.28) 11.99 9.50 969 1.40 (d) 2.45 65.8 2022 18.35 0.34 (5.22) (4.88) (0.32) (1.94) (2.26) 11.21 (30.14) 1,649 1.34 2.40 60.5 2021 15.15 0.38 3.85 4.23 (0.14) (0.89) (1.03) 18.35 28.72 3,029 1.36 2.11 55.0 R-5 shares 2025 14.62 0.23 3.26 3.49 (0.48) (1.30) (1.78) 16.33 27.40 3,473 0.89 1.55 96.3 2024 12.02 0.27 2.70 2.97 (0.37) – (0.37) 14.62 25.06 2,462 0.98 (c) 1.92 158.0 2023 11.26 0.40 0.70 1.10 (0.34) – (0.34) 12.02 9.81 2,058 1.09 (d) 3.09 65.8 2022 18.39 0.38 (5.23) (4.85) (0.34) (1.94) (2.28) 11.26 (29.95) 487 1.03 2.73 60.5 2021 15.17 0.40 3.90 4.30 (0.19) (0.89) (1.08) 18.39 29.12 (e) 755 1.05 2.21 55.0 R-6 shares 2025 14.60 0.35 3.17 3.52 (0.51) (1.30) (1.81) 16.31 27.75 6,504,278 0.62 (b) 2.35 96.3 2024 12.01 0.31 2.69 3.00 (0.41) – (0.41) 14.60 25.30 208,314 0.71 (b),(c) 2.21 158.0 2023 11.25 0.39 0.74 1.13 (0.37) – (0.37) 12.01 10.09 180,658 0.82 (b),(d) 3.09 65.8 2022 18.41 0.42 (5.22) (4.80) (0.42) (1.94) (2.36) 11.25 (29.73) 181,468 0.76 (b) 3.06 60.5 2021 15.19 0.45 3.89 4.34 (0.23) (0.89) (1.12) 18.41 29.47 204,338 0.79 (b) 2.51 55.0 (a) Calculated based on average shares outstanding during the period. (b) Subject to Manager's contractual expense limit. (c) Includes 0.02% of expenses associated with the reclaim of foreign taxes paid. The expense is not subject to the Manager's contractual expense limit. (d) Includes 0.13% of expenses associated with the reclaim of foreign taxes paid. The expense is not subject to the 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. 28

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![null029.jpg](ck0000898745-20260227_g92.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 LARGECAP GROWTH FUND I Class A shares 2025 $19.24 ($0.07) $3.19 $3.12 ($5.26) ($5.26) $17.10 20.09%(b) $569,409 0.93%(c) –% (0.45)% 34.7% 2024 14.77 (0.05) 5.56 5.51 (1.04) (1.04) 19.24 38.80 (b) 533,056 0.94 (c) – (0.28) 39.6 2023 14.20 (0.05) 2.14 2.09 (1.52) (1.52) 14.77 16.90 (b),(d) 423,684 1.00 (c) – (0.37) 26.5 2022 23.75 (0.08) (6.95) (7.03) (2.52) (2.52) 14.20 (32.72) (b) 389,907 0.96 (c) – (0.46) 28.4 2021 18.39 (0.11) 6.91 6.80 (1.44) (1.44) 23.75 38.72 (b) 632,010 0.95 (c) – (0.51) 23.1 Class J shares 2025 14.38 (0.03) 2.20 2.17 (5.26) (5.26) 11.29 20.36 (b) 454,528 0.78 (e) 0.80 (f) (0.30) 34.7 2024 11.25 (0.01) 4.18 4.17 (1.04) (1.04) 14.38 39.04 (b) 424,765 0.77 (e) 0.80 (f) (0.11) 39.6 2023 11.17 (0.02) 1.62 1.60 (1.52) (1.52) 11.25 17.11 (b),(d) 319,716 0.80 (e) 0.84 (f) (0.17) 26.5 2022 19.22 (0.04) (5.49) (5.53) (2.52) (2.52) 11.17 (32.65) (b),(g) 269,806 0.79 (e) 0.83 (f) (0.29) 28.4 2021 15.10 (0.06) 5.62 5.56 (1.44) (1.44) 19.22 39.03 (b),(g) 445,587 0.78 (e) 0.82 (f) (0.34) 23.1 Institutional shares 2025 20.74 (0.04) 3.52 3.48 (5.26) (5.26) 18.96 20.44 487,852 0.67 (c) – (0.20) 34.7 2024 15.82 0.01 5.95 5.96 (1.04) (1.04) 20.74 39.08 693,756 0.67 (c) – 0.06 39.6 2023 15.05 (0.01) 2.30 2.29 (1.52) (1.52) 15.82 17.31 (d) 2,516,629 0.68 (c) – (0.05) 26.5 2022 24.95 (0.03) (7.35) (7.38) (2.52) (2.52) 15.05 (32.53) 2,371,763 0.68 (c) – (0.18) 28.4 2021 19.20 (0.05) 7.24 7.19 (1.44) (1.44) 24.95 39.14 3,460,761 0.67 (c) – (0.23) 23.1 R-3 shares 2025 16.89 (0.09) 2.71 2.62 (5.26) (5.26) 14.25 19.85 76,190 1.16 (c) – (0.69) 34.7 2024 13.11 (0.08) 4.90 4.82 (1.04) (1.04) 16.89 38.43 71,500 1.16 (c) – (0.50) 39.6 2023 12.80 (0.07) 1.90 1.83 (1.52) (1.52) 13.11 16.69 (d) 63,841 1.16 (c) – (0.53) 26.5 2022 21.70 (0.10) (6.28) (6.38) (2.52) (2.52) 12.80 (32.85) (g) 58,977 1.16 (c) – (0.66) 28.4 2021 16.94 (0.14) 6.34 6.20 (1.44) (1.44) 21.70 38.54 (g) 102,793 1.15 (c) – (0.71) 23.1 R-5 shares 2025 19.20 (0.06) 3.20 3.14 (5.26) (5.26) 17.08 20.26 154,277 0.85 (c) – (0.38) 34.7 2024 14.73 (0.03) 5.54 5.51 (1.04) (1.04) 19.20 38.91 133,666 0.85 (c) – (0.18) 39.6 2023 14.15 (0.03) 2.13 2.10 (1.52) (1.52) 14.73 17.04 (d) 148,543 0.85 (c) – (0.21) 26.5 2022 23.65 (0.06) (6.92) (6.98) (2.52) (2.52) 14.15 (32.64) 158,035 0.85 (c) – (0.35) 28.4 2021 18.29 (0.08) 6.88 6.80 (1.44) (1.44) 23.65 38.94 364,553 0.84 (c) – (0.40) 23.1 R-6 shares 2025 20.81 (0.02) 3.53 3.51 (5.26) (5.26) 19.06 20.55 6,704,503 0.59 (c) – (0.11) 34.7 2024 15.85 0.01 5.99 6.00 (1.04) (1.04) 20.81 39.27 8,162,259 0.59 (c) – 0.07 39.6 2023 15.07 0.01 2.29 2.30 (1.52) (1.52) 15.85 17.36 (d) 6,955,555 0.59 (c) – 0.04 26.5 2022 24.96 (0.02) (7.35) (7.37) (2.52) (2.52) 15.07 (32.47) 6,257,991 0.59 (c) – (0.09) 28.4 2021 19.19 (0.03) 7.25 7.22 (1.45) (1.45) 24.96 39.24 (g) 9,740,176 0.59 (c) – (0.15) 23.1 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit. (d) During the fiscal year ending October 31, 2023, the Fund experienced a one-time gain of approximately $0.03/share as a result of a reimbursement by a service provider. If such gain had not been recognized, the total return amounts expressed herein would have been lower. (e) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (f) Excludes expense reimbursement from Manager and/or Distributor. (g) 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. 29

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![null030.jpg](ck0000898745-20260227_g93.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 LARGECAP GROWTH FUND I Class A shares 2025 $19.24 ($0.07) $3.19 $3.12 ($5.26) ($5.26) $17.10 20.09%(b) $569,409 0.93%(c) –% (0.45)% 34.7% 2024 14.77 (0.05) 5.56 5.51 (1.04) (1.04) 19.24 38.80 (b) 533,056 0.94 (c) – (0.28) 39.6 2023 14.20 (0.05) 2.14 2.09 (1.52) (1.52) 14.77 16.90 (b),(d) 423,684 1.00 (c) – (0.37) 26.5 2022 23.75 (0.08) (6.95) (7.03) (2.52) (2.52) 14.20 (32.72) (b) 389,907 0.96 (c) – (0.46) 28.4 2021 18.39 (0.11) 6.91 6.80 (1.44) (1.44) 23.75 38.72 (b) 632,010 0.95 (c) – (0.51) 23.1 Class J shares 2025 14.38 (0.03) 2.20 2.17 (5.26) (5.26) 11.29 20.36 (b) 454,528 0.78 (e) 0.80 (f) (0.30) 34.7 2024 11.25 (0.01) 4.18 4.17 (1.04) (1.04) 14.38 39.04 (b) 424,765 0.77 (e) 0.80 (f) (0.11) 39.6 2023 11.17 (0.02) 1.62 1.60 (1.52) (1.52) 11.25 17.11 (b),(d) 319,716 0.80 (e) 0.84 (f) (0.17) 26.5 2022 19.22 (0.04) (5.49) (5.53) (2.52) (2.52) 11.17 (32.65) (b),(g) 269,806 0.79 (e) 0.83 (f) (0.29) 28.4 2021 15.10 (0.06) 5.62 5.56 (1.44) (1.44) 19.22 39.03 (b),(g) 445,587 0.78 (e) 0.82 (f) (0.34) 23.1 Institutional shares 2025 20.74 (0.04) 3.52 3.48 (5.26) (5.26) 18.96 20.44 487,852 0.67 (c) – (0.20) 34.7 2024 15.82 0.01 5.95 5.96 (1.04) (1.04) 20.74 39.08 693,756 0.67 (c) – 0.06 39.6 2023 15.05 (0.01) 2.30 2.29 (1.52) (1.52) 15.82 17.31 (d) 2,516,629 0.68 (c) – (0.05) 26.5 2022 24.95 (0.03) (7.35) (7.38) (2.52) (2.52) 15.05 (32.53) 2,371,763 0.68 (c) – (0.18) 28.4 2021 19.20 (0.05) 7.24 7.19 (1.44) (1.44) 24.95 39.14 3,460,761 0.67 (c) – (0.23) 23.1 R-3 shares 2025 16.89 (0.09) 2.71 2.62 (5.26) (5.26) 14.25 19.85 76,190 1.16 (c) – (0.69) 34.7 2024 13.11 (0.08) 4.90 4.82 (1.04) (1.04) 16.89 38.43 71,500 1.16 (c) – (0.50) 39.6 2023 12.80 (0.07) 1.90 1.83 (1.52) (1.52) 13.11 16.69 (d) 63,841 1.16 (c) – (0.53) 26.5 2022 21.70 (0.10) (6.28) (6.38) (2.52) (2.52) 12.80 (32.85) (g) 58,977 1.16 (c) – (0.66) 28.4 2021 16.94 (0.14) 6.34 6.20 (1.44) (1.44) 21.70 38.54 (g) 102,793 1.15 (c) – (0.71) 23.1 R-5 shares 2025 19.20 (0.06) 3.20 3.14 (5.26) (5.26) 17.08 20.26 154,277 0.85 (c) – (0.38) 34.7 2024 14.73 (0.03) 5.54 5.51 (1.04) (1.04) 19.20 38.91 133,666 0.85 (c) – (0.18) 39.6 2023 14.15 (0.03) 2.13 2.10 (1.52) (1.52) 14.73 17.04 (d) 148,543 0.85 (c) – (0.21) 26.5 2022 23.65 (0.06) (6.92) (6.98) (2.52) (2.52) 14.15 (32.64) 158,035 0.85 (c) – (0.35) 28.4 2021 18.29 (0.08) 6.88 6.80 (1.44) (1.44) 23.65 38.94 364,553 0.84 (c) – (0.40) 23.1 R-6 shares 2025 20.81 (0.02) 3.53 3.51 (5.26) (5.26) 19.06 20.55 6,704,503 0.59 (c) – (0.11) 34.7 2024 15.85 0.01 5.99 6.00 (1.04) (1.04) 20.81 39.27 8,162,259 0.59 (c) – 0.07 39.6 2023 15.07 0.01 2.29 2.30 (1.52) (1.52) 15.85 17.36 (d) 6,955,555 0.59 (c) – 0.04 26.5 2022 24.96 (0.02) (7.35) (7.37) (2.52) (2.52) 15.07 (32.47) 6,257,991 0.59 (c) – (0.09) 28.4 2021 19.19 (0.03) 7.25 7.22 (1.45) (1.45) 24.96 39.24 (g) 9,740,176 0.59 (c) – (0.15) 23.1 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit. (d) During the fiscal year ending October 31, 2023, the Fund experienced a one-time gain of approximately $0.03/share as a result of a reimbursement by a service provider. If such gain had not been recognized, the total return amounts expressed herein would have been lower. (e) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (f) Excludes expense reimbursement from Manager and/or Distributor. (g) 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. 30

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![null031.jpg](ck0000898745-20260227_g94.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 LARGECAP S&P 500 INDEX FUND Class A shares 2025 $28.11 $0.30 $5.49 $5.79 ($0.29) ($0.43) ($0.72) $33.18 21.03%(b) $963,461 0.31% –% 1.03% 4.2% 2024 21.25 0.30 7.47 7.77 (0.27) (0.64) (0.91) 28.11 37.50 (b) 805,883 0.33 – 1.19 2.3 2023 19.91 0.27 1.59 1.86 (0.25) (0.27) (0.52) 21.25 9.61 (b) 616,516 0.42 – 1.29 5.9 2022 26.67 0.24 (3.75) (3.51) (0.20) (3.05) (3.25) 19.91 (14.93) (b) 544,686 0.40 – 1.10 3.7 2021 20.14 0.24 7.88 8.12 (0.33) (1.26) (1.59) 26.67 42.29 (b) 651,354 0.40 – 1.00 3.8 Class J shares 2025 27.72 0.31 5.40 5.71 (0.30) (0.43) (0.73) 32.70 21.08 (b) 1,445,305 0.27 (c) 0.27 (d) 1.08 4.2 2024 20.97 0.32 7.36 7.68 (0.29) (0.64) (0.93) 27.72 37.58 (b) 1,244,170 0.27 (c) 0.28 (d) 1.25 2.3 2023 19.65 0.29 1.56 1.85 (0.26) (0.27) (0.53) 20.97 9.71 (b) 892,669 0.34 (c) 0.36 (d) 1.37 5.9 2022 26.36 0.25 (3.70) (3.45) (0.21) (3.05) (3.26) 19.65 (14.87) (b) 810,657 0.34 (c) 0.36 (d) 1.15 3.7 2021 19.93 0.25 7.78 8.03 (0.34) (1.26) (1.60) 26.36 42.31 (b) 970,126 0.35 (c) 0.37 (d) 1.06 3.8 Institutional shares 2025 28.15 0.37 5.49 5.86 (0.34) (0.43) (0.77) 33.24 21.32 7,790,209 0.10 – 1.24 4.2 2024 21.29 0.36 7.46 7.82 (0.32) (0.64) (0.96) 28.15 37.75 5,998,941 0.11 – 1.40 2.3 2023 19.94 0.33 1.59 1.92 (0.30) (0.27) (0.57) 21.29 9.93 4,143,385 0.16 – 1.55 5.9 2022 26.70 0.29 (3.75) (3.46) (0.25) (3.05) (3.30) 19.94 (14.73) 3,639,186 0.16 – 1.34 3.7 2021 20.16 0.30 7.88 8.18 (0.38) (1.26) (1.64) 26.70 42.61 4,069,356 0.17 – 1.27 3.8 R-3 shares 2025 28.13 0.20 5.48 5.68 (0.20) (0.43) (0.63) 33.18 20.60 197,091 0.66 – 0.69 4.2 2024 21.28 0.22 7.48 7.70 (0.21) (0.64) (0.85) 28.13 37.03 169,311 0.67 – 0.85 2.3 2023 19.91 0.21 1.60 1.81 (0.17) (0.27) (0.44) 21.28 9.32 136,914 0.71 – 1.00 5.9 2022 26.67 0.17 (3.76) (3.59) (0.12) (3.05) (3.17) 19.91 (15.21) 133,978 0.72 – 0.77 3.7 2021 20.15 0.17 7.87 8.04 (0.26) (1.26) (1.52) 26.67 41.78 192,913 0.72 – 0.70 3.8 R-5 shares 2025 28.67 0.30 5.58 5.88 (0.29) (0.43) (0.72) 33.83 20.97 446,848 0.35 – 0.99 4.2 2024 21.66 0.30 7.62 7.92 (0.27) (0.64) (0.91) 28.67 37.47 296,387 0.36 – 1.16 2.3 2023 20.27 0.28 1.63 1.91 (0.25) (0.27) (0.52) 21.66 9.67 238,426 0.40 – 1.31 5.9 2022 27.09 0.24 (3.82) (3.58) (0.19) (3.05) (3.24) 20.27 (14.94) 256,634 0.41 – 1.08 3.7 2021 20.44 0.24 7.99 8.23 (0.32) (1.26) (1.58) 27.09 42.22 327,673 0.41 – 0.99 3.8 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. 31

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![null032.jpg](ck0000898745-20260227_g95.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 LARGECAP S&P 500 INDEX FUND Class A shares 2025 $28.11 $0.30 $5.49 $5.79 ($0.29) ($0.43) ($0.72) $33.18 21.03%(b) $963,461 0.31% –% 1.03% 4.2% 2024 21.25 0.30 7.47 7.77 (0.27) (0.64) (0.91) 28.11 37.50 (b) 805,883 0.33 – 1.19 2.3 2023 19.91 0.27 1.59 1.86 (0.25) (0.27) (0.52) 21.25 9.61 (b) 616,516 0.42 – 1.29 5.9 2022 26.67 0.24 (3.75) (3.51) (0.20) (3.05) (3.25) 19.91 (14.93) (b) 544,686 0.40 – 1.10 3.7 2021 20.14 0.24 7.88 8.12 (0.33) (1.26) (1.59) 26.67 42.29 (b) 651,354 0.40 – 1.00 3.8 Class J shares 2025 27.72 0.31 5.40 5.71 (0.30) (0.43) (0.73) 32.70 21.08 (b) 1,445,305 0.27 (c) 0.27 (d) 1.08 4.2 2024 20.97 0.32 7.36 7.68 (0.29) (0.64) (0.93) 27.72 37.58 (b) 1,244,170 0.27 (c) 0.28 (d) 1.25 2.3 2023 19.65 0.29 1.56 1.85 (0.26) (0.27) (0.53) 20.97 9.71 (b) 892,669 0.34 (c) 0.36 (d) 1.37 5.9 2022 26.36 0.25 (3.70) (3.45) (0.21) (3.05) (3.26) 19.65 (14.87) (b) 810,657 0.34 (c) 0.36 (d) 1.15 3.7 2021 19.93 0.25 7.78 8.03 (0.34) (1.26) (1.60) 26.36 42.31 (b) 970,126 0.35 (c) 0.37 (d) 1.06 3.8 Institutional shares 2025 28.15 0.37 5.49 5.86 (0.34) (0.43) (0.77) 33.24 21.32 7,790,209 0.10 – 1.24 4.2 2024 21.29 0.36 7.46 7.82 (0.32) (0.64) (0.96) 28.15 37.75 5,998,941 0.11 – 1.40 2.3 2023 19.94 0.33 1.59 1.92 (0.30) (0.27) (0.57) 21.29 9.93 4,143,385 0.16 – 1.55 5.9 2022 26.70 0.29 (3.75) (3.46) (0.25) (3.05) (3.30) 19.94 (14.73) 3,639,186 0.16 – 1.34 3.7 2021 20.16 0.30 7.88 8.18 (0.38) (1.26) (1.64) 26.70 42.61 4,069,356 0.17 – 1.27 3.8 R-3 shares 2025 28.13 0.20 5.48 5.68 (0.20) (0.43) (0.63) 33.18 20.60 197,091 0.66 – 0.69 4.2 2024 21.28 0.22 7.48 7.70 (0.21) (0.64) (0.85) 28.13 37.03 169,311 0.67 – 0.85 2.3 2023 19.91 0.21 1.60 1.81 (0.17) (0.27) (0.44) 21.28 9.32 136,914 0.71 – 1.00 5.9 2022 26.67 0.17 (3.76) (3.59) (0.12) (3.05) (3.17) 19.91 (15.21) 133,978 0.72 – 0.77 3.7 2021 20.15 0.17 7.87 8.04 (0.26) (1.26) (1.52) 26.67 41.78 192,913 0.72 – 0.70 3.8 R-5 shares 2025 28.67 0.30 5.58 5.88 (0.29) (0.43) (0.72) 33.83 20.97 446,848 0.35 – 0.99 4.2 2024 21.66 0.30 7.62 7.92 (0.27) (0.64) (0.91) 28.67 37.47 296,387 0.36 – 1.16 2.3 2023 20.27 0.28 1.63 1.91 (0.25) (0.27) (0.52) 21.66 9.67 238,426 0.40 – 1.31 5.9 2022 27.09 0.24 (3.82) (3.58) (0.19) (3.05) (3.24) 20.27 (14.94) 256,634 0.41 – 1.08 3.7 2021 20.44 0.24 7.99 8.23 (0.32) (1.26) (1.58) 27.09 42.22 327,673 0.41 – 0.99 3.8 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. 32

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![null033.jpg](ck0000898745-20260227_g96.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 LARGECAP VALUE FUND III Class J shares 2025 $20.31 $0.23 $1.11 $1.34 ($0.23) ($1.33) ($1.56) $20.09 7.28%(b) $86,965 0.91%(c) 0.95%(d) 1.19% 60.5% 2024 16.27 0.25 4.33 4.58 (0.23) (0.31) (0.54) 20.31 28.69 (b) 88,878 0.93 (c) 1.01 (d) 1.36 41.1 2023 18.01 0.22 (0.29) (0.07) (0.24) (1.43) (1.67) 16.27 (0.46) (b) 76,888 1.00 (c) 1.09 (d) 1.31 44.9 2022 20.70 0.21 (1.16) (0.95) (0.14) (1.60) (1.74) 18.01 (4.80) (b) 82,605 0.97 (c) 1.06 (d) 1.13 42.6 2021 14.67 0.15 6.10 6.25 (0.22) – (0.22) 20.70 42.96 (b) 84,871 0.98 (c) 1.07 (d) 0.82 46.3 Institutional shares 2025 20.76 0.29 1.13 1.42 (0.27) (1.33) (1.60) 20.58 7.54 2,767,672 0.67 (e) – 1.45 60.5 2024 16.63 0.30 4.42 4.72 (0.28) (0.31) (0.59) 20.76 28.97 3,682,407 0.70 (e) – 1.57 41.1 2023 18.36 0.28 (0.29) (0.01) (0.29) (1.43) (1.72) 16.63 (0.13) 2,556,406 0.72 (e) – 1.59 44.9 2022 21.07 0.26 (1.18) (0.92) (0.19) (1.60) (1.79) 18.36 (4.56) 2,634,970 0.70 (e) – 1.39 42.6 2021 14.94 0.21 6.19 6.40 (0.27) – (0.27) 21.07 43.27 3,457,999 0.70 (e) – 1.07 46.3 R-3 shares 2025 22.05 0.18 1.23 1.41 (0.19) (1.33) (1.52) 21.94 7.00 9,191 1.23 (e) – 0.88 60.5 2024 17.64 0.21 4.69 4.90 (0.18) (0.31) (0.49) 22.05 28.19 6,886 1.26 (e) – 1.03 41.1 2023 19.36 0.19 (0.30) (0.11) (0.18) (1.43) (1.61) 17.64 (0.67) 5,941 1.27 (e) – 1.04 44.9 2022 22.13 0.16 (1.24) (1.08) (0.09) (1.60) (1.69) 19.36 (5.11) 6,078 1.26 (e) – 0.83 42.6 2021 15.67 0.10 6.53 6.63 (0.17) – (0.17) 22.13 42.56 7,133 1.27 (e) – 0.52 46.3 R-5 shares 2025 20.97 0.24 1.14 1.38 (0.22) (1.33) (1.55) 20.80 7.24 4,891 0.92 (e) – 1.20 60.5 2024 16.80 0.26 4.46 4.72 (0.24) (0.31) (0.55) 20.97 28.61 5,485 0.95 (e) – 1.36 41.1 2023 18.52 0.23 (0.28) (0.05) (0.24) (1.43) (1.67) 16.80 (0.34) 5,618 0.96 (e) – 1.34 44.9 2022 21.22 0.22 (1.20) (0.98) (0.12) (1.60) (1.72) 18.52 (4.81) 5,432 0.95 (e) – 1.15 42.6 2021 15.04 0.16 6.25 6.41 (0.23) – (0.23) 21.22 42.94 8,722 0.96 (e) – 0.84 46.3 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 33

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![null034.jpg](ck0000898745-20260227_g97.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 LARGECAP VALUE FUND III Class J shares 2025 $20.31 $0.23 $1.11 $1.34 ($0.23) ($1.33) ($1.56) $20.09 7.28%(b) $86,965 0.91%(c) 0.95%(d) 1.19% 60.5% 2024 16.27 0.25 4.33 4.58 (0.23) (0.31) (0.54) 20.31 28.69 (b) 88,878 0.93 (c) 1.01 (d) 1.36 41.1 2023 18.01 0.22 (0.29) (0.07) (0.24) (1.43) (1.67) 16.27 (0.46) (b) 76,888 1.00 (c) 1.09 (d) 1.31 44.9 2022 20.70 0.21 (1.16) (0.95) (0.14) (1.60) (1.74) 18.01 (4.80) (b) 82,605 0.97 (c) 1.06 (d) 1.13 42.6 2021 14.67 0.15 6.10 6.25 (0.22) – (0.22) 20.70 42.96 (b) 84,871 0.98 (c) 1.07 (d) 0.82 46.3 Institutional shares 2025 20.76 0.29 1.13 1.42 (0.27) (1.33) (1.60) 20.58 7.54 2,767,672 0.67 (e) – 1.45 60.5 2024 16.63 0.30 4.42 4.72 (0.28) (0.31) (0.59) 20.76 28.97 3,682,407 0.70 (e) – 1.57 41.1 2023 18.36 0.28 (0.29) (0.01) (0.29) (1.43) (1.72) 16.63 (0.13) 2,556,406 0.72 (e) – 1.59 44.9 2022 21.07 0.26 (1.18) (0.92) (0.19) (1.60) (1.79) 18.36 (4.56) 2,634,970 0.70 (e) – 1.39 42.6 2021 14.94 0.21 6.19 6.40 (0.27) – (0.27) 21.07 43.27 3,457,999 0.70 (e) – 1.07 46.3 R-3 shares 2025 22.05 0.18 1.23 1.41 (0.19) (1.33) (1.52) 21.94 7.00 9,191 1.23 (e) – 0.88 60.5 2024 17.64 0.21 4.69 4.90 (0.18) (0.31) (0.49) 22.05 28.19 6,886 1.26 (e) – 1.03 41.1 2023 19.36 0.19 (0.30) (0.11) (0.18) (1.43) (1.61) 17.64 (0.67) 5,941 1.27 (e) – 1.04 44.9 2022 22.13 0.16 (1.24) (1.08) (0.09) (1.60) (1.69) 19.36 (5.11) 6,078 1.26 (e) – 0.83 42.6 2021 15.67 0.10 6.53 6.63 (0.17) – (0.17) 22.13 42.56 7,133 1.27 (e) – 0.52 46.3 R-5 shares 2025 20.97 0.24 1.14 1.38 (0.22) (1.33) (1.55) 20.80 7.24 4,891 0.92 (e) – 1.20 60.5 2024 16.80 0.26 4.46 4.72 (0.24) (0.31) (0.55) 20.97 28.61 5,485 0.95 (e) – 1.36 41.1 2023 18.52 0.23 (0.28) (0.05) (0.24) (1.43) (1.67) 16.80 (0.34) 5,618 0.96 (e) – 1.34 44.9 2022 21.22 0.22 (1.20) (0.98) (0.12) (1.60) (1.72) 18.52 (4.81) 5,432 0.95 (e) – 1.15 42.6 2021 15.04 0.16 6.25 6.41 (0.23) – (0.23) 21.22 42.94 8,722 0.96 (e) – 0.84 46.3 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 34

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![null035.jpg](ck0000898745-20260227_g98.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 MIDCAP FUND Class A shares 2025 $43.52 ($0.12) $1.17 $1.05 $– ($1.40) ($1.40) $43.17 2.28%(b) $1,893,507 0.90% –% (0.28)% 13.7% 2024 31.74 0.07 12.66 12.73 – (0.95) (0.95) 43.52 40.69 (b) 1,994,144 0.91 – 0.18 10.5 2023 30.71 (0.10) 2.12 2.02 – (0.99) (0.99) 31.74 6.62 (b) 1,590,186 0.95 – (0.30) 10.1 2022 42.87 (0.09) (8.74) (8.83) – (3.33) (3.33) 30.71 (22.25) (b) 1,591,916 0.94 – (0.27) 14.1 2021 30.19 (0.19) 13.26 13.07 – (0.39) (0.39) 42.87 43.63 (b) 2,198,683 0.93 – (0.50) 12.4 Class C shares 2025 36.12 (0.40) 0.99 0.59 – (1.40) (1.40) 35.31 1.45 (b) 29,747 1.71 – (1.10) 13.7 2024 26.69 (0.21) 10.59 10.38 – (0.95) (0.95) 36.12 39.55 (b) 34,593 1.72 – (0.64) 10.5 2023 26.19 (0.31) 1.80 1.49 – (0.99) (0.99) 26.69 5.71 (b) 29,926 1.78 – (1.13) 10.1 2022 37.32 (0.31) (7.49) (7.80) – (3.33) (3.33) 26.19 (22.84) (b) 40,097 1.72 – (1.06) 14.1 2021 26.51 (0.39) 11.59 11.20 – (0.39) (0.39) 37.32 42.62 (b) 72,682 1.67 – (1.21) 12.4 Class J shares 2025 41.73 (0.07) 1.15 1.08 (0.03) (1.40) (1.43) 41.38 2.45 (b) 471,374 0.76 (c) 0.76 (d) (0.15) 13.7 2024 30.43 0.12 12.13 12.25 – (0.95) (0.95) 41.73 40.87 (b) 385,523 0.76 (c) 0.78 (d) 0.32 10.5 2023 29.44 (0.05) 2.03 1.98 – (0.99) (0.99) 30.43 6.78 (b) 293,360 0.80 (c) 0.82 (d) (0.16) 10.1 2022 41.18 (0.04) (8.37) (8.41) – (3.33) (3.33) 29.44 (22.13) (b) 292,151 0.79 (c) 0.81 (d) (0.12) 14.1 2021 28.96 (0.12) 12.73 12.61 – (0.39) (0.39) 41.18 43.85 (b),(e) 407,907 0.78 (c) 0.80 (d) (0.34) 12.4 Institutional shares 2025 45.49 (0.02) 1.23 1.21 (0.06) (1.40) (1.46) 45.24 2.54 15,681,298 0.67 – (0.04) 13.7 2024 33.08 0.17 13.20 13.37 (0.01) (0.95) (0.96) 45.49 41.00 13,863,432 0.67 – 0.41 10.5 2023 31.88 (0.01) 2.20 2.19 – (0.99) (0.99) 33.08 6.92 9,079,129 0.68 – (0.04) 10.1 2022 44.26 – (9.05) (9.05) – (3.33) (3.33) 31.88 (22.05) (e) 10,110,818 0.67 (f) – 0.00 14.1 2021 31.08 (0.09) 13.66 13.57 – (0.39) (0.39) 44.26 44.03 (e) 15,790,247 0.67 (f) – (0.24) 12.4 R-3 shares 2025 41.79 (0.25) 1.17 0.92 (0.01) (1.40) (1.41) 41.30 2.06 164,861 1.13 – (0.60) 13.7 2024 30.58 (0.03) 12.19 12.16 – (0.95) (0.95) 41.79 40.36 51,069 1.14 – (0.07) 10.5 2023 29.68 (0.16) 2.05 1.89 – (0.99) (0.99) 30.58 6.41 40,789 1.15 – (0.51) 10.1 2022 41.63 (0.16) (8.46) (8.62) – (3.33) (3.33) 29.68 (22.42) 44,432 1.15 – (0.49) 14.1 2021 29.38 (0.26) 12.90 12.64 – (0.39) (0.39) 41.63 43.32 (e) 73,376 1.15 – (0.71) 12.4 R-5 shares 2025 44.34 (0.12) 1.25 1.13 – (1.40) (1.40) 44.07 2.43 235,966 0.82 – (0.26) 13.7 2024 32.31 0.10 12.88 12.98 – (0.95) (0.95) 44.34 40.75 281,715 0.83 – 0.24 10.5 2023 31.21 (0.07) 2.16 2.09 – (0.99) (0.99) 32.31 6.74 219,018 0.84 – (0.21) 10.1 2022 43.47 (0.06) (8.87) (8.93) – (3.33) (3.33) 31.21 (22.16) 296,351 0.84 – (0.17) 14.1 2021 30.57 (0.15) 13.44 13.29 – (0.39) (0.39) 43.47 43.76 (e) 427,065 0.84 – (0.40) 12.4 R-6 shares 2025 45.56 0.02 1.23 1.25 (0.09) (1.40) (1.49) 45.32 2.63 13,049,550 0.57 – 0.05 13.7 2024 33.13 0.21 13.21 13.42 (0.04) (0.95) (0.99) 45.56 41.11 11,302,031 0.59 – 0.50 10.5 2023 31.90 0.01 2.21 2.22 – (0.99) (0.99) 33.13 7.01 6,835,701 0.60 (f) – 0.04 10.1 2022 44.26 0.03 (9.06) (9.03) – (3.33) (3.33) 31.90 (21.98) 5,989,509 0.59 (f) – 0.09 14.1 2021 31.05 (0.06) 13.66 13.60 – (0.39) (0.39) 44.26 44.13 5,220,374 0.59 (f) – (0.15) 12.4 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d)

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Excludes expense reimbursement from Manager and/or Distributor. (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) Subject to Manager's contractual expense limit. 35

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![null036.jpg](ck0000898745-20260227_g99.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 MIDCAP FUND Class A shares 2025 $43.52 ($0.12) $1.17 $1.05 $– ($1.40) ($1.40) $43.17 2.28%(b) $1,893,507 0.90% –% (0.28)% 13.7% 2024 31.74 0.07 12.66 12.73 – (0.95) (0.95) 43.52 40.69 (b) 1,994,144 0.91 – 0.18 10.5 2023 30.71 (0.10) 2.12 2.02 – (0.99) (0.99) 31.74 6.62 (b) 1,590,186 0.95 – (0.30) 10.1 2022 42.87 (0.09) (8.74) (8.83) – (3.33) (3.33) 30.71 (22.25) (b) 1,591,916 0.94 – (0.27) 14.1 2021 30.19 (0.19) 13.26 13.07 – (0.39) (0.39) 42.87 43.63 (b) 2,198,683 0.93 – (0.50) 12.4 Class C shares 2025 36.12 (0.40) 0.99 0.59 – (1.40) (1.40) 35.31 1.45 (b) 29,747 1.71 – (1.10) 13.7 2024 26.69 (0.21) 10.59 10.38 – (0.95) (0.95) 36.12 39.55 (b) 34,593 1.72 – (0.64) 10.5 2023 26.19 (0.31) 1.80 1.49 – (0.99) (0.99) 26.69 5.71 (b) 29,926 1.78 – (1.13) 10.1 2022 37.32 (0.31) (7.49) (7.80) – (3.33) (3.33) 26.19 (22.84) (b) 40,097 1.72 – (1.06) 14.1 2021 26.51 (0.39) 11.59 11.20 – (0.39) (0.39) 37.32 42.62 (b) 72,682 1.67 – (1.21) 12.4 Class J shares 2025 41.73 (0.07) 1.15 1.08 (0.03) (1.40) (1.43) 41.38 2.45 (b) 471,374 0.76 (c) 0.76 (d) (0.15) 13.7 2024 30.43 0.12 12.13 12.25 – (0.95) (0.95) 41.73 40.87 (b) 385,523 0.76 (c) 0.78 (d) 0.32 10.5 2023 29.44 (0.05) 2.03 1.98 – (0.99) (0.99) 30.43 6.78 (b) 293,360 0.80 (c) 0.82 (d) (0.16) 10.1 2022 41.18 (0.04) (8.37) (8.41) – (3.33) (3.33) 29.44 (22.13) (b) 292,151 0.79 (c) 0.81 (d) (0.12) 14.1 2021 28.96 (0.12) 12.73 12.61 – (0.39) (0.39) 41.18 43.85 (b),(e) 407,907 0.78 (c) 0.80 (d) (0.34) 12.4 Institutional shares 2025 45.49 (0.02) 1.23 1.21 (0.06) (1.40) (1.46) 45.24 2.54 15,681,298 0.67 – (0.04) 13.7 2024 33.08 0.17 13.20 13.37 (0.01) (0.95) (0.96) 45.49 41.00 13,863,432 0.67 – 0.41 10.5 2023 31.88 (0.01) 2.20 2.19 – (0.99) (0.99) 33.08 6.92 9,079,129 0.68 – (0.04) 10.1 2022 44.26 – (9.05) (9.05) – (3.33) (3.33) 31.88 (22.05) (e) 10,110,818 0.67 (f) – 0.00 14.1 2021 31.08 (0.09) 13.66 13.57 – (0.39) (0.39) 44.26 44.03 (e) 15,790,247 0.67 (f) – (0.24) 12.4 R-3 shares 2025 41.79 (0.25) 1.17 0.92 (0.01) (1.40) (1.41) 41.30 2.06 164,861 1.13 – (0.60) 13.7 2024 30.58 (0.03) 12.19 12.16 – (0.95) (0.95) 41.79 40.36 51,069 1.14 – (0.07) 10.5 2023 29.68 (0.16) 2.05 1.89 – (0.99) (0.99) 30.58 6.41 40,789 1.15 – (0.51) 10.1 2022 41.63 (0.16) (8.46) (8.62) – (3.33) (3.33) 29.68 (22.42) 44,432 1.15 – (0.49) 14.1 2021 29.38 (0.26) 12.90 12.64 – (0.39) (0.39) 41.63 43.32 (e) 73,376 1.15 – (0.71) 12.4 R-5 shares 2025 44.34 (0.12) 1.25 1.13 – (1.40) (1.40) 44.07 2.43 235,966 0.82 – (0.26) 13.7 2024 32.31 0.10 12.88 12.98 – (0.95) (0.95) 44.34 40.75 281,715 0.83 – 0.24 10.5 2023 31.21 (0.07) 2.16 2.09 – (0.99) (0.99) 32.31 6.74 219,018 0.84 – (0.21) 10.1 2022 43.47 (0.06) (8.87) (8.93) – (3.33) (3.33) 31.21 (22.16) 296,351 0.84 – (0.17) 14.1 2021 30.57 (0.15) 13.44 13.29 – (0.39) (0.39) 43.47 43.76 (e) 427,065 0.84 – (0.40) 12.4 R-6 shares 2025 45.56 0.02 1.23 1.25 (0.09) (1.40) (1.49) 45.32 2.63 13,049,550 0.57 – 0.05 13.7 2024 33.13 0.21 13.21 13.42 (0.04) (0.95) (0.99) 45.56 41.11 11,302,031 0.59 – 0.50 10.5 2023 31.90 0.01 2.21 2.22 – (0.99) (0.99) 33.13 7.01 6,835,701 0.60 (f) – 0.04 10.1 2022 44.26 0.03 (9.06) (9.03) – (3.33) (3.33) 31.90 (21.98) 5,989,509 0.59 (f) – 0.09 14.1 2021 31.05 (0.06) 13.66 13.60 – (0.39) (0.39) 44.26 44.13 5,220,374 0.59 (f) – (0.15) 12.4 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (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) Subject to Manager's contractual expense limit. 36

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![null037.jpg](ck0000898745-20260227_g100.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 MIDCAP S&P 400 INDEX FUND Class J shares 2025 $23.74 $0.25 $1.00 $1.25 ($0.29) ($2.76) ($3.05) $21.94 5.96%(b) $147,752 0.38%(c) 0.38%(d) 1.15% 16.2% 2024 18.60 0.27 5.65 5.92 (0.26) (0.52) (0.78) 23.74 32.43 (b) 153,543 0.36 (c) 0.38 (d) 1.23 19.9 2023 20.31 0.24 (0.52) (0.28) (0.24) (1.19) (1.43) 18.60 (1.41) (b) 122,039 0.40 (c) 0.42 (d) 1.21 20.4 2022 25.15 0.24 (3.04) (2.80) (0.25) (1.79) (2.04) 20.31 (11.85) (b) 127,212 0.39 (c) 0.41 (d) 1.12 20.9 2021 18.23 0.26 8.18 8.44 (0.21) (1.31) (1.52) 25.15 48.22 (b) 151,143 0.39 (c) 0.41 (d) 1.11 19.2 Institutional shares 2025 24.79 0.29 1.06 1.35 (0.32) (2.76) (3.08) 23.06 6.10 221,252 0.25 – 1.28 16.2 2024 19.39 0.31 5.90 6.21 (0.29) (0.52) (0.81) 24.79 32.61 213,290 0.25 – 1.35 19.9 2023 21.11 0.28 (0.54) (0.26) (0.27) (1.19) (1.46) 19.39 (1.25) 183,105 0.25 – 1.36 20.4 2022 26.06 0.28 (3.16) (2.88) (0.28) (1.79) (2.07) 21.11 (11.73) 188,790 0.23 – 1.27 20.9 2021 18.84 0.31 8.46 8.77 (0.24) (1.31) (1.55) 26.06 48.45 251,222 0.22 – 1.27 19.2 R-3 shares 2025 25.40 0.19 1.08 1.27 (0.21) (2.76) (2.97) 23.70 5.59 63,217 0.73 – 0.80 16.2 2024 19.86 0.21 6.03 6.24 (0.18) (0.52) (0.70) 25.40 31.92 66,175 0.73 – 0.87 19.9 2023 21.57 0.19 (0.54) (0.35) (0.17) (1.19) (1.36) 19.86 (1.70) 59,228 0.73 – 0.88 20.4 2022 26.57 0.18 (3.24) (3.06) (0.15) (1.79) (1.94) 21.57 (12.15) 67,797 0.73 – 0.77 20.9 2021 19.19 0.19 8.64 8.83 (0.14) (1.31) (1.45) 26.57 47.71 88,428 0.73 – 0.76 19.2 R-5 shares 2025 25.90 0.26 1.10 1.36 (0.29) (2.76) (3.05) 24.21 5.88 112,221 0.42 – 1.11 16.2 2024 20.22 0.28 6.17 6.45 (0.25) (0.52) (0.77) 25.90 32.42 90,491 0.42 – 1.18 19.9 2023 21.95 0.26 (0.57) (0.31) (0.23) (1.19) (1.42) 20.22 (1.45) 76,662 0.42 – 1.19 20.4 2022 27.00 0.25 (3.28) (3.03) (0.23) (1.79) (2.02) 21.95 (11.87) 95,818 0.42 – 1.08 20.9 2021 19.48 0.27 8.76 9.03 (0.20) (1.31) (1.51) 27.00 48.14 122,169 0.42 – 1.08 19.2 R-6 shares 2025 24.78 0.31 1.05 1.36 (0.33) (2.76) (3.09) 23.05 6.19 665,695 0.16 – 1.36 16.2 2024 19.39 0.33 5.89 6.22 (0.31) (0.52) (0.83) 24.78 32.67 701,967 0.16 – 1.45 19.9 2023 21.11 0.30 (0.54) (0.24) (0.29) (1.19) (1.48) 19.39 (1.18) 740,171 0.16 – 1.44 20.4 2022 26.05 0.30 (3.15) (2.85) (0.30) (1.79) (2.09) 21.11 (11.64) 712,153 0.16 (e) – 1.36 20.9 2021 18.83 0.32 8.46 8.78 (0.25) (1.31) (1.56) 26.05 48.58 740,456 0.16 (e) – 1.34 19.2 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 37

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![null038.jpg](ck0000898745-20260227_g101.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 MIDCAP S&P 400 INDEX FUND Class J shares 2025 $23.74 $0.25 $1.00 $1.25 ($0.29) ($2.76) ($3.05) $21.94 5.96%(b) $147,752 0.38%(c) 0.38%(d) 1.15% 16.2% 2024 18.60 0.27 5.65 5.92 (0.26) (0.52) (0.78) 23.74 32.43 (b) 153,543 0.36 (c) 0.38 (d) 1.23 19.9 2023 20.31 0.24 (0.52) (0.28) (0.24) (1.19) (1.43) 18.60 (1.41) (b) 122,039 0.40 (c) 0.42 (d) 1.21 20.4 2022 25.15 0.24 (3.04) (2.80) (0.25) (1.79) (2.04) 20.31 (11.85) (b) 127,212 0.39 (c) 0.41 (d) 1.12 20.9 2021 18.23 0.26 8.18 8.44 (0.21) (1.31) (1.52) 25.15 48.22 (b) 151,143 0.39 (c) 0.41 (d) 1.11 19.2 Institutional shares 2025 24.79 0.29 1.06 1.35 (0.32) (2.76) (3.08) 23.06 6.10 221,252 0.25 – 1.28 16.2 2024 19.39 0.31 5.90 6.21 (0.29) (0.52) (0.81) 24.79 32.61 213,290 0.25 – 1.35 19.9 2023 21.11 0.28 (0.54) (0.26) (0.27) (1.19) (1.46) 19.39 (1.25) 183,105 0.25 – 1.36 20.4 2022 26.06 0.28 (3.16) (2.88) (0.28) (1.79) (2.07) 21.11 (11.73) 188,790 0.23 – 1.27 20.9 2021 18.84 0.31 8.46 8.77 (0.24) (1.31) (1.55) 26.06 48.45 251,222 0.22 – 1.27 19.2 R-3 shares 2025 25.40 0.19 1.08 1.27 (0.21) (2.76) (2.97) 23.70 5.59 63,217 0.73 – 0.80 16.2 2024 19.86 0.21 6.03 6.24 (0.18) (0.52) (0.70) 25.40 31.92 66,175 0.73 – 0.87 19.9 2023 21.57 0.19 (0.54) (0.35) (0.17) (1.19) (1.36) 19.86 (1.70) 59,228 0.73 – 0.88 20.4 2022 26.57 0.18 (3.24) (3.06) (0.15) (1.79) (1.94) 21.57 (12.15) 67,797 0.73 – 0.77 20.9 2021 19.19 0.19 8.64 8.83 (0.14) (1.31) (1.45) 26.57 47.71 88,428 0.73 – 0.76 19.2 R-5 shares 2025 25.90 0.26 1.10 1.36 (0.29) (2.76) (3.05) 24.21 5.88 112,221 0.42 – 1.11 16.2 2024 20.22 0.28 6.17 6.45 (0.25) (0.52) (0.77) 25.90 32.42 90,491 0.42 – 1.18 19.9 2023 21.95 0.26 (0.57) (0.31) (0.23) (1.19) (1.42) 20.22 (1.45) 76,662 0.42 – 1.19 20.4 2022 27.00 0.25 (3.28) (3.03) (0.23) (1.79) (2.02) 21.95 (11.87) 95,818 0.42 – 1.08 20.9 2021 19.48 0.27 8.76 9.03 (0.20) (1.31) (1.51) 27.00 48.14 122,169 0.42 – 1.08 19.2 R-6 shares 2025 24.78 0.31 1.05 1.36 (0.33) (2.76) (3.09) 23.05 6.19 665,695 0.16 – 1.36 16.2 2024 19.39 0.33 5.89 6.22 (0.31) (0.52) (0.83) 24.78 32.67 701,967 0.16 – 1.45 19.9 2023 21.11 0.30 (0.54) (0.24) (0.29) (1.19) (1.48) 19.39 (1.18) 740,171 0.16 – 1.44 20.4 2022 26.05 0.30 (3.15) (2.85) (0.30) (1.79) (2.09) 21.11 (11.64) 712,153 0.16 (e) – 1.36 20.9 2021 18.83 0.32 8.46 8.78 (0.25) (1.31) (1.56) 26.05 48.58 740,456 0.16 (e) – 1.34 19.2 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 38

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![null039.jpg](ck0000898745-20260227_g102.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 MIDCAP VALUE FUND I Class A shares 2025 $18.40 $0.12 $0.13 $0.25 ($0.19) ($2.52) ($2.71) $15.94 1.91%(b) $46,944 1.06%(c) –% 0.77% 79.6% 2024 14.89 0.14 4.06 4.20 (0.15) (0.54) (0.69) 18.40 28.83 (b) 47,518 1.05 (c) – 0.83 55.3 2023 16.23 0.15 (0.45) (0.30) (0.16) (0.88) (1.04) 14.89 (2.02) (b) 40,844 1.12 (c) – 0.93 49.9 2022 18.93 0.18 (0.92) (0.74) (0.16) (1.80) (1.96) 16.23 (4.18) (b) 46,917 1.09 (c) – 1.06 51.1 2021 12.76 0.16 6.14 6.30 (0.13) – (0.13) 18.93 49.69 (b) 42,833 1.10 (c) – 0.90 53.5 Class J shares 2025 18.19 0.15 0.12 0.27 (0.22) (2.52) (2.74) 15.72 2.06 (b) 170,931 0.87 (d) 0.89 (e) 0.95 79.6 2024 14.72 0.18 4.02 4.20 (0.19) (0.54) (0.73) 18.19 29.20 (b) 188,451 0.84 (d) 0.88 (e) 1.04 55.3 2023 16.06 0.18 (0.45) (0.27) (0.19) (0.88) (1.07) 14.72 (1.85) (b) 162,873 0.90 (d) 0.94 (e) 1.16 49.9 2022 18.74 0.21 (0.90) (0.69) (0.19) (1.80) (1.99) 16.06 (3.97) (b) 180,636 0.88 (d) 0.92 (e) 1.27 51.1 2021 12.65 0.19 6.08 6.27 (0.18) – (0.18) 18.74 49.98 (b) 190,633 0.89 (d) 0.93 (e) 1.11 53.5 Institutional shares 2025 18.48 0.19 0.11 0.30 (0.24) (2.52) (2.76) 16.02 2.23 864,142 0.69 (c) – 1.15 79.6 2024 14.95 0.21 4.08 4.29 (0.22) (0.54) (0.76) 18.48 29.40 1,282,618 0.69 (c) – 1.20 55.3 2023 16.29 0.22 (0.46) (0.24) (0.22) (0.88) (1.10) 14.95 (1.64) 1,076,199 0.69 (c) – 1.36 49.9 2022 18.98 0.25 (0.93) (0.68) (0.21) (1.80) (2.01) 16.29 (3.82) 1,106,800 0.69 (c) – 1.49 51.1 2021 12.81 0.22 6.16 6.38 (0.21) – (0.21) 18.98 50.23 349,246 0.72 (c) – 1.29 53.5 R-3 shares 2025 18.08 0.10 0.12 0.22 (0.18) (2.52) (2.70) 15.60 1.74 12,331 1.20 (c) – 0.62 79.6 2024 14.65 0.12 3.99 4.11 (0.14) (0.54) (0.68) 18.08 28.68 11,020 1.19 (c) – 0.69 55.3 2023 15.98 0.13 (0.44) (0.31) (0.14) (0.88) (1.02) 14.65 (2.12) 10,065 1.19 (c) – 0.86 49.9 2022 18.65 0.16 (0.90) (0.74) (0.13) (1.80) (1.93) 15.98 (4.26) 11,582 1.19 (c) – 0.95 51.1 2021 12.60 0.14 6.05 6.19 (0.14) – (0.14) 18.65 49.47 13,975 1.20 (c) – 0.81 53.5 R-5 shares 2025 18.31 0.15 0.12 0.27 (0.22) (2.52) (2.74) 15.84 2.05 31,004 0.89 (c) – 0.93 79.6 2024 14.82 0.17 4.05 4.22 (0.19) (0.54) (0.73) 18.31 29.14 29,770 0.88 (c) – 1.01 55.3 2023 16.16 0.18 (0.45) (0.27) (0.19) (0.88) (1.07) 14.82 (1.82) 28,298 0.88 (c) – 1.17 49.9 2022 18.85 0.21 (0.91) (0.70) (0.19) (1.80) (1.99) 16.16 (4.00) 28,272 0.88 (c) – 1.27 51.1 2021 12.72 0.19 6.12 6.31 (0.18) – (0.18) 18.85 50.02 29,746 0.89 (c) – 1.12 53.5 R-6 shares 2025 18.53 0.19 0.12 0.31 (0.25) (2.52) (2.77) 16.07 2.28 1,145,435 0.64 (c) – 1.19 79.6 2024 15.00 0.22 4.08 4.30 (0.23) (0.54) (0.77) 18.53 29.39 1,271,063 0.63 (c) – 1.28 55.3 2023 16.33 0.23 (0.45) (0.22) (0.23) (0.88) (1.11) 15.00 (1.51) 2,089,882 0.62 (c) – 1.43 49.9 2022 19.02 0.26 (0.92) (0.66) (0.23) (1.80) (2.03) 16.33 (3.78) (f) 2,249,267 0.62 (c) – 1.53 51.1 2021 12.84 0.24 6.16 6.40 (0.22) – (0.22) 19.02 50.41 (f) 2,312,305 0.63 (c) – 1.38 53.5 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit. (d) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (e) Excludes expense reimbursement from Manager and/or Distributor. (f) 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. 39

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![null040.jpg](ck0000898745-20260227_g103.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 MIDCAP VALUE FUND I Class A shares 2025 $18.40 $0.12 $0.13 $0.25 ($0.19) ($2.52) ($2.71) $15.94 1.91%(b) $46,944 1.06%(c) –% 0.77% 79.6% 2024 14.89 0.14 4.06 4.20 (0.15) (0.54) (0.69) 18.40 28.83 (b) 47,518 1.05 (c) – 0.83 55.3 2023 16.23 0.15 (0.45) (0.30) (0.16) (0.88) (1.04) 14.89 (2.02) (b) 40,844 1.12 (c) – 0.93 49.9 2022 18.93 0.18 (0.92) (0.74) (0.16) (1.80) (1.96) 16.23 (4.18) (b) 46,917 1.09 (c) – 1.06 51.1 2021 12.76 0.16 6.14 6.30 (0.13) – (0.13) 18.93 49.69 (b) 42,833 1.10 (c) – 0.90 53.5 Class J shares 2025 18.19 0.15 0.12 0.27 (0.22) (2.52) (2.74) 15.72 2.06 (b) 170,931 0.87 (d) 0.89 (e) 0.95 79.6 2024 14.72 0.18 4.02 4.20 (0.19) (0.54) (0.73) 18.19 29.20 (b) 188,451 0.84 (d) 0.88 (e) 1.04 55.3 2023 16.06 0.18 (0.45) (0.27) (0.19) (0.88) (1.07) 14.72 (1.85) (b) 162,873 0.90 (d) 0.94 (e) 1.16 49.9 2022 18.74 0.21 (0.90) (0.69) (0.19) (1.80) (1.99) 16.06 (3.97) (b) 180,636 0.88 (d) 0.92 (e) 1.27 51.1 2021 12.65 0.19 6.08 6.27 (0.18) – (0.18) 18.74 49.98 (b) 190,633 0.89 (d) 0.93 (e) 1.11 53.5 Institutional shares 2025 18.48 0.19 0.11 0.30 (0.24) (2.52) (2.76) 16.02 2.23 864,142 0.69 (c) – 1.15 79.6 2024 14.95 0.21 4.08 4.29 (0.22) (0.54) (0.76) 18.48 29.40 1,282,618 0.69 (c) – 1.20 55.3 2023 16.29 0.22 (0.46) (0.24) (0.22) (0.88) (1.10) 14.95 (1.64) 1,076,199 0.69 (c) – 1.36 49.9 2022 18.98 0.25 (0.93) (0.68) (0.21) (1.80) (2.01) 16.29 (3.82) 1,106,800 0.69 (c) – 1.49 51.1 2021 12.81 0.22 6.16 6.38 (0.21) – (0.21) 18.98 50.23 349,246 0.72 (c) – 1.29 53.5 R-3 shares 2025 18.08 0.10 0.12 0.22 (0.18) (2.52) (2.70) 15.60 1.74 12,331 1.20 (c) – 0.62 79.6 2024 14.65 0.12 3.99 4.11 (0.14) (0.54) (0.68) 18.08 28.68 11,020 1.19 (c) – 0.69 55.3 2023 15.98 0.13 (0.44) (0.31) (0.14) (0.88) (1.02) 14.65 (2.12) 10,065 1.19 (c) – 0.86 49.9 2022 18.65 0.16 (0.90) (0.74) (0.13) (1.80) (1.93) 15.98 (4.26) 11,582 1.19 (c) – 0.95 51.1 2021 12.60 0.14 6.05 6.19 (0.14) – (0.14) 18.65 49.47 13,975 1.20 (c) – 0.81 53.5 R-5 shares 2025 18.31 0.15 0.12 0.27 (0.22) (2.52) (2.74) 15.84 2.05 31,004 0.89 (c) – 0.93 79.6 2024 14.82 0.17 4.05 4.22 (0.19) (0.54) (0.73) 18.31 29.14 29,770 0.88 (c) – 1.01 55.3 2023 16.16 0.18 (0.45) (0.27) (0.19) (0.88) (1.07) 14.82 (1.82) 28,298 0.88 (c) – 1.17 49.9 2022 18.85 0.21 (0.91) (0.70) (0.19) (1.80) (1.99) 16.16 (4.00) 28,272 0.88 (c) – 1.27 51.1 2021 12.72 0.19 6.12 6.31 (0.18) – (0.18) 18.85 50.02 29,746 0.89 (c) – 1.12 53.5 R-6 shares 2025 18.53 0.19 0.12 0.31 (0.25) (2.52) (2.77) 16.07 2.28 1,145,435 0.64 (c) – 1.19 79.6 2024 15.00 0.22 4.08 4.30 (0.23) (0.54) (0.77) 18.53 29.39 1,271,063 0.63 (c) – 1.28 55.3 2023 16.33 0.23 (0.45) (0.22) (0.23) (0.88) (1.11) 15.00 (1.51) 2,089,882 0.62 (c) – 1.43 49.9 2022 19.02 0.26 (0.92) (0.66) (0.23) (1.80) (2.03) 16.33 (3.78) (f) 2,249,267 0.62 (c) – 1.53 51.1 2021 12.84 0.24 6.16 6.40 (0.22) – (0.22) 19.02 50.41 (f) 2,312,305 0.63 (c) – 1.38 53.5 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit. (d) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (e) Excludes expense reimbursement from Manager and/or Distributor. (f) 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. 40

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![null041.jpg](ck0000898745-20260227_g104.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted): Net Asset Value, Beginning of Period Net Investment Income (Loss)(a) Total From Investment Operations Dividends from Net Investment Income Total Dividends and Distributions Net Asset Value, End of Period Total Return 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 MONEY MARKET FUND Class A shares 2025 $1.00 $0.04 $0.04 ($0.04) ($0.04) $1.00 4.12%(b) $348,977 0.46%(c) 0.46%(d) 4.02% 2024 1.00 0.05 0.05 (0.05) (0.05) 1.00 5.08 (b) 348,944 0.47 (c) 0.47 (d) 4.96 2023 1.00 0.04 0.04 (0.04) (0.04) 1.00 4.53 (b) 341,831 0.49 (c) 0.49 (d) 4.43 2022 1.00 0.01 0.01 (0.01) (0.01) 1.00 0.63 (b) 352,832 0.50 (c) 0.54 (d) 0.67 2021 1.00 – – – – 1.00 0.00 (b) 293,949 0.12 (c) 0.55 (d) 0.00 Class J shares 2025 1.00 0.04 0.04 (0.04) (0.04) 1.00 4.15 (b) 728,054 0.43 (e) 0.58 (f) 4.05 2024 1.00 0.05 0.05 (0.05) (0.05) 1.00 5.12 (b) 700,884 0.43 (e) 0.58 (f) 5.00 2023 1.00 0.04 0.04 (0.04) (0.04) 1.00 4.58 (b) 654,501 0.45 (e) 0.60 (f) 4.48 2022 1.00 0.01 0.01 (0.01) (0.01) 1.00 0.64 (b) 625,829 0.49 (e) 0.64 (f) 0.76 2021 1.00 – – – – 1.00 0.00 (b) 411,033 0.12 (e) 0.66 (f) 0.00 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual and/or voluntary expense limit. (d) Excludes expense reimbursement from Manager. (e) Subject to Manager's contractual and voluntary expense limit and/or Distributor's contractual distribution fee limit. (f) Excludes expense reimbursement from Manager and/or Distributor. 41

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![null042.jpg](ck0000898745-20260227_g105.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (except as noted): Net Asset Value, Beginning of Period Net Investment Income (Loss)(a) Total From Investment Operations Dividends from Net Investment Income Total Dividends and Distributions Net Asset Value, End of Period Total Return 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 MONEY MARKET FUND Class A shares 2025 $1.00 $0.04 $0.04 ($0.04) ($0.04) $1.00 4.12%(b) $348,977 0.46%(c) 0.46%(d) 4.02% 2024 1.00 0.05 0.05 (0.05) (0.05) 1.00 5.08 (b) 348,944 0.47 (c) 0.47 (d) 4.96 2023 1.00 0.04 0.04 (0.04) (0.04) 1.00 4.53 (b) 341,831 0.49 (c) 0.49 (d) 4.43 2022 1.00 0.01 0.01 (0.01) (0.01) 1.00 0.63 (b) 352,832 0.50 (c) 0.54 (d) 0.67 2021 1.00 – – – – 1.00 0.00 (b) 293,949 0.12 (c) 0.55 (d) 0.00 Class J shares 2025 1.00 0.04 0.04 (0.04) (0.04) 1.00 4.15 (b) 728,054 0.43 (e) 0.58 (f) 4.05 2024 1.00 0.05 0.05 (0.05) (0.05) 1.00 5.12 (b) 700,884 0.43 (e) 0.58 (f) 5.00 2023 1.00 0.04 0.04 (0.04) (0.04) 1.00 4.58 (b) 654,501 0.45 (e) 0.60 (f) 4.48 2022 1.00 0.01 0.01 (0.01) (0.01) 1.00 0.64 (b) 625,829 0.49 (e) 0.64 (f) 0.76 2021 1.00 – – – – 1.00 0.00 (b) 411,033 0.12 (e) 0.66 (f) 0.00 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual and/or voluntary expense limit. (d) Excludes expense reimbursement from Manager. (e) Subject to Manager's contractual and voluntary expense limit and/or Distributor's contractual distribution fee limit. (f) Excludes expense reimbursement from Manager and/or Distributor. 42

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![null043.jpg](ck0000898745-20260227_g106.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 OVERSEAS FUND Institutional shares 2025 $11.15 $0.28 $2.28 $2.56 ($0.51) ($1.08) ($1.59) $12.12 27.66% $1,639,934 0.91%(b) 2.57% 77.5% 2024 10.03 0.31 1.48 1.79 (0.30) (0.37) (0.67) 11.15 18.27 1,157,795 0.90 (b) 2.83 48.0 2023 8.90 0.30 1.59 1.89 (0.23) (0.53) (0.76) 10.03 22.01 2,143,073 0.97 (b) 2.86 59.3 2022 11.44 0.26 (1.98) (1.72) (0.28) (0.54) (0.82) 8.90 (16.05) 1,703,672 0.97 (b) 2.56 62.2 2021 8.12 0.20 3.31 3.51 (0.19) – (0.19) 11.44 43.48 2,927,281 0.94 (b) 1.79 54.8 R-3 shares 2025 10.97 0.25 2.23 2.48 (0.39) (1.08) (1.47) 11.98 26.92 826 1.46 (b) 2.34 77.5 2024 9.88 0.25 1.46 1.71 (0.25) (0.37) (0.62) 10.97 17.68 271 1.45 (b) 2.37 48.0 2023 8.78 0.24 1.57 1.81 (0.18) (0.53) (0.71) 9.88 21.27 717 1.52 (b) 2.31 59.3 2022 11.30 0.20 (1.96) (1.76) (0.22) (0.54) (0.76) 8.78 (16.52) 464 1.52 (b) 2.01 62.2 2021 8.02 0.14 3.27 3.41 (0.13) – (0.13) 11.30 42.73 604 1.49 (b) 1.29 54.8 (a) Calculated based on average shares outstanding during the period. (b) Subject to Manager's contractual expense limit. 43

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![null044.jpg](ck0000898745-20260227_g107.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 OVERSEAS FUND Institutional shares 2025 $11.15 $0.28 $2.28 $2.56 ($0.51) ($1.08) ($1.59) $12.12 27.66% $1,639,934 0.91%(b) 2.57% 77.5% 2024 10.03 0.31 1.48 1.79 (0.30) (0.37) (0.67) 11.15 18.27 1,157,795 0.90 (b) 2.83 48.0 2023 8.90 0.30 1.59 1.89 (0.23) (0.53) (0.76) 10.03 22.01 2,143,073 0.97 (b) 2.86 59.3 2022 11.44 0.26 (1.98) (1.72) (0.28) (0.54) (0.82) 8.90 (16.05) 1,703,672 0.97 (b) 2.56 62.2 2021 8.12 0.20 3.31 3.51 (0.19) – (0.19) 11.44 43.48 2,927,281 0.94 (b) 1.79 54.8 R-3 shares 2025 10.97 0.25 2.23 2.48 (0.39) (1.08) (1.47) 11.98 26.92 826 1.46 (b) 2.34 77.5 2024 9.88 0.25 1.46 1.71 (0.25) (0.37) (0.62) 10.97 17.68 271 1.45 (b) 2.37 48.0 2023 8.78 0.24 1.57 1.81 (0.18) (0.53) (0.71) 9.88 21.27 717 1.52 (b) 2.31 59.3 2022 11.30 0.20 (1.96) (1.76) (0.22) (0.54) (0.76) 8.78 (16.52) 464 1.52 (b) 2.01 62.2 2021 8.02 0.14 3.27 3.41 (0.13) – (0.13) 11.30 42.73 604 1.49 (b) 1.29 54.8 (a) Calculated based on average shares outstanding during the period. (b) Subject to Manager's contractual expense limit. 44

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![null045.jpg](ck0000898745-20260227_g108.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL CAPITAL APPRECIATION FUND Class A shares 2025 $80.71 $0.24 $13.84 $14.08 ($0.37) ($3.79) ($4.16) $90.63 18.18%(b) $1,520,610 0.73% 0.29% 55.8% 2024 58.41 0.44 22.33 22.77 (0.47) – (0.47) 80.71 39.15 (b) 1,405,974 0.74 0.60 41.4 2023 53.59 0.44 4.75 5.19 (0.37) – (0.37) 58.41 9.75 (b) 1,085,264 0.78 0.76 48.2 2022 68.28 0.38 (8.95) (8.57) (0.27) (5.85) (6.12) 53.59 (13.77) (b),(c) 1,037,510 0.77 0.66 49.5 2021 51.30 0.36 19.57 19.93 (0.43) (2.52) (2.95) 68.28 40.26 (b),(c) 1,288,915 0.80 0.59 29.9 Institutional shares 2025 83.89 0.49 14.40 14.89 (0.58) (3.79) (4.37) 94.41 18.52 (c) 3,566,464 0.45 0.57 55.8 2024 60.69 0.67 23.19 23.86 (0.66) – (0.66) 83.89 39.55 3,171,457 0.45 0.88 41.4 2023 55.67 0.64 4.93 5.57 (0.55) – (0.55) 60.69 10.12 2,351,308 0.46 1.07 48.2 2022 70.67 0.57 (9.26) (8.69) (0.46) (5.85) (6.31) 55.67 (13.51) (c) 2,022,614 0.46 0.97 49.5 2021 53.00 0.57 20.22 20.79 (0.60) (2.52) (3.12) 70.67 40.71 (c) 961,957 0.49 (d) 0.90 29.9 R-3 shares 2025 80.68 0.03 13.82 13.85 (0.24) (3.79) (4.03) 90.50 17.88 (c) 51,979 0.99 0.03 55.8 2024 58.45 0.24 22.36 22.60 (0.37) – (0.37) 80.68 38.81 41,756 0.99 0.32 41.4 2023 53.61 0.30 4.77 5.07 (0.23) – (0.23) 58.45 9.51 24,142 1.01 0.52 48.2 2022 68.37 0.24 (8.98) (8.74) (0.17) (5.85) (6.02) 53.61 (13.98) 19,275 1.01 0.42 49.5 2021 51.37 0.21 19.62 19.83 (0.31) (2.52) (2.83) 68.37 39.94 20,459 1.04 0.35 29.9 R-5 shares 2025 82.68 0.29 14.18 14.47 (0.43) (3.79) (4.22) 92.93 18.23 43,314 0.68 0.35 55.8 2024 59.83 0.50 22.86 23.36 (0.51) – (0.51) 82.68 39.24 35,981 0.68 0.66 41.4 2023 54.88 0.49 4.87 5.36 (0.41) – (0.41) 59.83 9.85 31,171 0.70 0.83 48.2 2022 69.77 0.43 (9.17) (8.74) (0.30) (5.85) (6.15) 54.88 (13.72) 27,542 0.70 0.73 49.5 2021 52.35 0.42 19.98 20.40 (0.46) (2.52) (2.98) 69.77 40.37 33,672 0.73 0.68 29.9 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (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. (d) Subject to Manager's contractual expense limit. 45

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![null046.jpg](ck0000898745-20260227_g109.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL CAPITAL APPRECIATION FUND Class A shares 2025 $80.71 $0.24 $13.84 $14.08 ($0.37) ($3.79) ($4.16) $90.63 18.18%(b) $1,520,610 0.73% 0.29% 55.8% 2024 58.41 0.44 22.33 22.77 (0.47) – (0.47) 80.71 39.15 (b) 1,405,974 0.74 0.60 41.4 2023 53.59 0.44 4.75 5.19 (0.37) – (0.37) 58.41 9.75 (b) 1,085,264 0.78 0.76 48.2 2022 68.28 0.38 (8.95) (8.57) (0.27) (5.85) (6.12) 53.59 (13.77) (b),(c) 1,037,510 0.77 0.66 49.5 2021 51.30 0.36 19.57 19.93 (0.43) (2.52) (2.95) 68.28 40.26 (b),(c) 1,288,915 0.80 0.59 29.9 Institutional shares 2025 83.89 0.49 14.40 14.89 (0.58) (3.79) (4.37) 94.41 18.52 (c) 3,566,464 0.45 0.57 55.8 2024 60.69 0.67 23.19 23.86 (0.66) – (0.66) 83.89 39.55 3,171,457 0.45 0.88 41.4 2023 55.67 0.64 4.93 5.57 (0.55) – (0.55) 60.69 10.12 2,351,308 0.46 1.07 48.2 2022 70.67 0.57 (9.26) (8.69) (0.46) (5.85) (6.31) 55.67 (13.51) (c) 2,022,614 0.46 0.97 49.5 2021 53.00 0.57 20.22 20.79 (0.60) (2.52) (3.12) 70.67 40.71 (c) 961,957 0.49 (d) 0.90 29.9 R-3 shares 2025 80.68 0.03 13.82 13.85 (0.24) (3.79) (4.03) 90.50 17.88 (c) 51,979 0.99 0.03 55.8 2024 58.45 0.24 22.36 22.60 (0.37) – (0.37) 80.68 38.81 41,756 0.99 0.32 41.4 2023 53.61 0.30 4.77 5.07 (0.23) – (0.23) 58.45 9.51 24,142 1.01 0.52 48.2 2022 68.37 0.24 (8.98) (8.74) (0.17) (5.85) (6.02) 53.61 (13.98) 19,275 1.01 0.42 49.5 2021 51.37 0.21 19.62 19.83 (0.31) (2.52) (2.83) 68.37 39.94 20,459 1.04 0.35 29.9 R-5 shares 2025 82.68 0.29 14.18 14.47 (0.43) (3.79) (4.22) 92.93 18.23 43,314 0.68 0.35 55.8 2024 59.83 0.50 22.86 23.36 (0.51) – (0.51) 82.68 39.24 35,981 0.68 0.66 41.4 2023 54.88 0.49 4.87 5.36 (0.41) – (0.41) 59.83 9.85 31,171 0.70 0.83 48.2 2022 69.77 0.43 (9.17) (8.74) (0.30) (5.85) (6.15) 54.88 (13.72) 27,542 0.70 0.73 49.5 2021 52.35 0.42 19.98 20.40 (0.46) (2.52) (2.98) 69.77 40.37 33,672 0.73 0.68 29.9 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (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. (d) Subject to Manager's contractual expense limit. 46

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![null047.jpg](ck0000898745-20260227_g110.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2015 FUND Institutional shares 2025 $8.89 $0.27 $0.53 $0.80 ($0.28) ($0.31) ($0.59) $9.10 9.60% $171,205 0.03% 3.14% 27.3% 2024 7.96 0.27 1.05 1.32 (0.25) (0.14) (0.39) 8.89 17.00 198,424 0.02 3.13 30.8 2023 8.28 0.24 0.07 0.31 (0.22) (0.41) (0.63) 7.96 3.80 204,780 0.02 2.98 14.5 2022 10.57 0.29 (1.78) (1.49) (0.26) (0.54) (0.80) 8.28 (15.15) 223,930 0.02 3.16 29.2 2021 9.66 0.20 1.26 1.46 (0.20) (0.35) (0.55) 10.57 15.48 304,277 0.02 1.91 28.3 R-3 shares 2025 8.59 0.22 0.50 0.72 (0.23) (0.31) (0.54) 8.77 8.95 13,511 0.58 2.59 27.3 2024 7.70 0.21 1.02 1.23 (0.20) (0.14) (0.34) 8.59 16.35 14,578 0.58 2.57 30.8 2023 8.02 0.19 0.07 0.26 (0.17) (0.41) (0.58) 7.70 3.21 16,887 0.58 2.41 14.5 2022 10.25 0.23 (1.72) (1.49) (0.20) (0.54) (0.74) 8.02 (15.57) 19,212 0.58 2.64 29.2 2021 9.38 0.14 1.22 1.36 (0.14) (0.35) (0.49) 10.25 14.85 28,808 0.58 1.38 28.3 R-5 shares 2025 8.71 0.25 0.51 0.76 (0.26) (0.31) (0.57) 8.90 9.36 19,319 0.27 2.92 27.3 2024 7.80 0.25 1.03 1.28 (0.23) (0.14) (0.37) 8.71 16.80 13,193 0.27 2.94 30.8 2023 8.13 0.22 0.06 0.28 (0.20) (0.41) (0.61) 7.80 3.44 17,102 0.27 2.74 14.5 2022 10.39 0.27 (1.76) (1.49) (0.23) (0.54) (0.77) 8.13 (15.35) 18,499 0.27 2.97 29.2 2021 9.50 0.17 1.24 1.41 (0.17) (0.35) (0.52) 10.39 15.25 26,565 0.27 1.67 28.3 (a) Calculated based on average shares outstanding during the period. 47

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![null048.jpg](ck0000898745-20260227_g111.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2015 FUND Institutional shares 2025 $8.89 $0.27 $0.53 $0.80 ($0.28) ($0.31) ($0.59) $9.10 9.60% $171,205 0.03% 3.14% 27.3% 2024 7.96 0.27 1.05 1.32 (0.25) (0.14) (0.39) 8.89 17.00 198,424 0.02 3.13 30.8 2023 8.28 0.24 0.07 0.31 (0.22) (0.41) (0.63) 7.96 3.80 204,780 0.02 2.98 14.5 2022 10.57 0.29 (1.78) (1.49) (0.26) (0.54) (0.80) 8.28 (15.15) 223,930 0.02 3.16 29.2 2021 9.66 0.20 1.26 1.46 (0.20) (0.35) (0.55) 10.57 15.48 304,277 0.02 1.91 28.3 R-3 shares 2025 8.59 0.22 0.50 0.72 (0.23) (0.31) (0.54) 8.77 8.95 13,511 0.58 2.59 27.3 2024 7.70 0.21 1.02 1.23 (0.20) (0.14) (0.34) 8.59 16.35 14,578 0.58 2.57 30.8 2023 8.02 0.19 0.07 0.26 (0.17) (0.41) (0.58) 7.70 3.21 16,887 0.58 2.41 14.5 2022 10.25 0.23 (1.72) (1.49) (0.20) (0.54) (0.74) 8.02 (15.57) 19,212 0.58 2.64 29.2 2021 9.38 0.14 1.22 1.36 (0.14) (0.35) (0.49) 10.25 14.85 28,808 0.58 1.38 28.3 R-5 shares 2025 8.71 0.25 0.51 0.76 (0.26) (0.31) (0.57) 8.90 9.36 19,319 0.27 2.92 27.3 2024 7.80 0.25 1.03 1.28 (0.23) (0.14) (0.37) 8.71 16.80 13,193 0.27 2.94 30.8 2023 8.13 0.22 0.06 0.28 (0.20) (0.41) (0.61) 7.80 3.44 17,102 0.27 2.74 14.5 2022 10.39 0.27 (1.76) (1.49) (0.23) (0.54) (0.77) 8.13 (15.35) 18,499 0.27 2.97 29.2 2021 9.50 0.17 1.24 1.41 (0.17) (0.35) (0.52) 10.39 15.25 26,565 0.27 1.67 28.3 (a) Calculated based on average shares outstanding during the period. 48

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![null049.jpg](ck0000898745-20260227_g112.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2020 FUND Class A shares 2025 $13.00 $0.33 $0.88 $1.21 ($0.33) ($0.53) ($0.86) $13.35 9.98%(b) $82,201 0.33% –% 2.63% 25.6% 2024 11.52 0.33 1.72 2.05 (0.30) (0.27) (0.57) 13.00 18.15 (b) 86,973 0.33 – 2.64 27.4 2023 12.14 0.29 0.14 0.43 (0.25) (0.80) (1.05) 11.52 3.73 (b) 81,249 0.38 – 2.44 9.8 2022 15.80 0.38 (2.74) (2.36) (0.33) (0.97) (1.30) 12.14 (16.17) (b) 88,607 0.36 (c) – 2.84 25.2 2021 14.07 0.23 2.30 2.53 (0.23) (0.57) (0.80) 15.80 18.52 (b) 112,642 0.35 (c) – 1.50 19.6 Class J shares 2025 12.78 0.35 0.85 1.20 (0.35) (0.53) (0.88) 13.10 10.12 (b) 649,774 0.17 (d) 0.17 (e) 2.79 25.6 2024 11.33 0.35 1.70 2.05 (0.33) (0.27) (0.60) 12.78 18.47 (b) 669,174 0.15 (d) 0.17 (e) 2.82 27.4 2023 11.96 0.31 0.14 0.45 (0.28) (0.80) (1.08) 11.33 3.91 (b) 640,253 0.16 (d) 0.18 (e) 2.64 9.8 2022 15.59 0.41 (2.72) (2.31) (0.35) (0.97) (1.32) 11.96 (16.05) (b) 679,727 0.17 (d) 0.19 (e) 3.06 25.2 2021 13.89 0.25 2.28 2.53 (0.26) (0.57) (0.83) 15.59 18.69 (b),(f) 910,454 0.18 (d) 0.20 (e) 1.68 19.6 Institutional shares 2025 12.89 0.38 0.86 1.24 (0.37) (0.53) (0.90) 13.23 10.36 1,143,548 0.01 – 2.99 25.6 2024 11.43 0.37 1.71 2.08 (0.35) (0.27) (0.62) 12.89 18.57 1,401,110 0.01 – 2.98 27.4 2023 12.06 0.33 0.14 0.47 (0.30) (0.80) (1.10) 11.43 4.07 1,427,262 0.01 – 2.82 9.8 2022 15.70 0.44 (2.73) (2.29) (0.38) (0.97) (1.35) 12.06 (15.85) 1,640,911 0.01 – 3.25 25.2 2021 13.99 0.28 2.28 2.56 (0.28) (0.57) (0.85) 15.70 18.87 2,424,308 0.01 – 1.86 19.6 R-3 shares 2025 12.70 0.30 0.86 1.16 (0.31) (0.53) (0.84) 13.02 9.76 61,765 0.57 – 2.43 25.6 2024 11.27 0.30 1.68 1.98 (0.28) (0.27) (0.55) 12.70 17.86 60,266 0.57 – 2.41 27.4 2023 11.89 0.26 0.14 0.40 (0.22) (0.80) (1.02) 11.27 3.51 62,249 0.57 – 2.26 9.8 2022 15.49 0.36 (2.70) (2.34) (0.29) (0.97) (1.26) 11.89 (16.37) (f) 77,582 0.57 – 2.69 25.2 2021 13.82 0.19 2.25 2.44 (0.20) (0.57) (0.77) 15.49 18.24 (f) 112,088 0.57 – 1.30 19.6 R-5 shares 2025 12.79 0.34 0.86 1.20 (0.34) (0.53) (0.87) 13.12 10.10 79,695 0.26 – 2.75 25.6 2024 11.35 0.34 1.68 2.02 (0.31) (0.27) (0.58) 12.79 18.20 74,174 0.26 – 2.76 27.4 2023 11.97 0.31 0.13 0.44 (0.26) (0.80) (1.06) 11.35 3.88 85,830 0.26 – 2.60 9.8 2022 15.60 0.40 (2.72) (2.32) (0.34) (0.97) (1.31) 11.97 (16.13) 103,555 0.26 – 3.02 25.2 2021 13.90 0.24 2.28 2.52 (0.25) (0.57) (0.82) 15.60 18.62 154,635 0.26 – 1.63 19.6 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit. (d) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (e) Excludes expense reimbursement from Manager and/or Distributor. (f) 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. 49

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![null050.jpg](ck0000898745-20260227_g113.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2020 FUND Class A shares 2025 $13.00 $0.33 $0.88 $1.21 ($0.33) ($0.53) ($0.86) $13.35 9.98%(b) $82,201 0.33% –% 2.63% 25.6% 2024 11.52 0.33 1.72 2.05 (0.30) (0.27) (0.57) 13.00 18.15 (b) 86,973 0.33 – 2.64 27.4 2023 12.14 0.29 0.14 0.43 (0.25) (0.80) (1.05) 11.52 3.73 (b) 81,249 0.38 – 2.44 9.8 2022 15.80 0.38 (2.74) (2.36) (0.33) (0.97) (1.30) 12.14 (16.17) (b) 88,607 0.36 (c) – 2.84 25.2 2021 14.07 0.23 2.30 2.53 (0.23) (0.57) (0.80) 15.80 18.52 (b) 112,642 0.35 (c) – 1.50 19.6 Class J shares 2025 12.78 0.35 0.85 1.20 (0.35) (0.53) (0.88) 13.10 10.12 (b) 649,774 0.17 (d) 0.17 (e) 2.79 25.6 2024 11.33 0.35 1.70 2.05 (0.33) (0.27) (0.60) 12.78 18.47 (b) 669,174 0.15 (d) 0.17 (e) 2.82 27.4 2023 11.96 0.31 0.14 0.45 (0.28) (0.80) (1.08) 11.33 3.91 (b) 640,253 0.16 (d) 0.18 (e) 2.64 9.8 2022 15.59 0.41 (2.72) (2.31) (0.35) (0.97) (1.32) 11.96 (16.05) (b) 679,727 0.17 (d) 0.19 (e) 3.06 25.2 2021 13.89 0.25 2.28 2.53 (0.26) (0.57) (0.83) 15.59 18.69 (b),(f) 910,454 0.18 (d) 0.20 (e) 1.68 19.6 Institutional shares 2025 12.89 0.38 0.86 1.24 (0.37) (0.53) (0.90) 13.23 10.36 1,143,548 0.01 – 2.99 25.6 2024 11.43 0.37 1.71 2.08 (0.35) (0.27) (0.62) 12.89 18.57 1,401,110 0.01 – 2.98 27.4 2023 12.06 0.33 0.14 0.47 (0.30) (0.80) (1.10) 11.43 4.07 1,427,262 0.01 – 2.82 9.8 2022 15.70 0.44 (2.73) (2.29) (0.38) (0.97) (1.35) 12.06 (15.85) 1,640,911 0.01 – 3.25 25.2 2021 13.99 0.28 2.28 2.56 (0.28) (0.57) (0.85) 15.70 18.87 2,424,308 0.01 – 1.86 19.6 R-3 shares 2025 12.70 0.30 0.86 1.16 (0.31) (0.53) (0.84) 13.02 9.76 61,765 0.57 – 2.43 25.6 2024 11.27 0.30 1.68 1.98 (0.28) (0.27) (0.55) 12.70 17.86 60,266 0.57 – 2.41 27.4 2023 11.89 0.26 0.14 0.40 (0.22) (0.80) (1.02) 11.27 3.51 62,249 0.57 – 2.26 9.8 2022 15.49 0.36 (2.70) (2.34) (0.29) (0.97) (1.26) 11.89 (16.37) (f) 77,582 0.57 – 2.69 25.2 2021 13.82 0.19 2.25 2.44 (0.20) (0.57) (0.77) 15.49 18.24 (f) 112,088 0.57 – 1.30 19.6 R-5 shares 2025 12.79 0.34 0.86 1.20 (0.34) (0.53) (0.87) 13.12 10.10 79,695 0.26 – 2.75 25.6 2024 11.35 0.34 1.68 2.02 (0.31) (0.27) (0.58) 12.79 18.20 74,174 0.26 – 2.76 27.4 2023 11.97 0.31 0.13 0.44 (0.26) (0.80) (1.06) 11.35 3.88 85,830 0.26 – 2.60 9.8 2022 15.60 0.40 (2.72) (2.32) (0.34) (0.97) (1.31) 11.97 (16.13) 103,555 0.26 – 3.02 25.2 2021 13.90 0.24 2.28 2.52 (0.25) (0.57) (0.82) 15.60 18.62 154,635 0.26 – 1.63 19.6 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit. (d) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (e) Excludes expense reimbursement from Manager and/or Distributor. (f) 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. 50

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![null051.jpg](ck0000898745-20260227_g114.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2025 FUND Institutional shares 2025 $11.67 $0.32 $0.90 $1.22 ($0.31) ($0.38) ($0.69) $12.20 11.12% $1,198,282 0.01% 2.80% 30.0% 2024 10.13 0.31 1.69 2.00 (0.28) (0.18) (0.46) 11.67 20.13 1,357,468 0.01 2.78 32.4 2023 10.47 0.27 0.18 0.45 (0.24) (0.55) (0.79) 10.13 4.49 1,267,266 0.01 2.60 14.4 2022 13.55 0.37 (2.48) (2.11) (0.33) (0.64) (0.97) 10.47 (16.71) 1,283,002 0.01 3.21 22.6 2021 11.64 0.23 2.33 2.56 (0.23) (0.42) (0.65) 13.55 22.55 1,534,067 0.01 1.76 24.0 R-3 shares 2025 11.31 0.25 0.88 1.13 (0.25) (0.38) (0.63) 11.81 10.57 90,789 0.57 2.21 30.0 2024 9.83 0.24 1.65 1.89 (0.23) (0.18) (0.41) 11.31 19.46 91,488 0.57 2.23 32.4 2023 10.18 0.21 0.17 0.38 (0.18) (0.55) (0.73) 9.83 3.83 86,339 0.58 2.07 14.4 2022 13.20 0.31 (2.43) (2.12) (0.26) (0.64) (0.90) 10.18 (17.18) 98,077 0.57 2.73 22.6 2021 11.35 0.16 2.27 2.43 (0.16) (0.42) (0.58) 13.20 21.95 132,449 0.57 1.23 24.0 R-5 shares 2025 11.54 0.29 0.90 1.19 (0.29) (0.38) (0.67) 12.06 10.92 92,061 0.26 2.56 30.0 2024 10.02 0.28 1.68 1.96 (0.26) (0.18) (0.44) 11.54 19.84 73,269 0.26 2.58 32.4 2023 10.36 0.25 0.17 0.42 (0.21) (0.55) (0.76) 10.02 4.25 81,215 0.27 2.40 14.4 2022 13.42 0.36 (2.48) (2.12) (0.30) (0.64) (0.94) 10.36 (16.95) 89,987 0.26 3.09 22.6 2021 11.54 0.20 2.30 2.50 (0.20) (0.42) (0.62) 13.42 22.20 123,237 0.26 1.54 24.0 (a) Calculated based on average shares outstanding during the period. 51

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![null052.jpg](ck0000898745-20260227_g115.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2025 FUND Institutional shares 2025 $11.67 $0.32 $0.90 $1.22 ($0.31) ($0.38) ($0.69) $12.20 11.12% $1,198,282 0.01% 2.80% 30.0% 2024 10.13 0.31 1.69 2.00 (0.28) (0.18) (0.46) 11.67 20.13 1,357,468 0.01 2.78 32.4 2023 10.47 0.27 0.18 0.45 (0.24) (0.55) (0.79) 10.13 4.49 1,267,266 0.01 2.60 14.4 2022 13.55 0.37 (2.48) (2.11) (0.33) (0.64) (0.97) 10.47 (16.71) 1,283,002 0.01 3.21 22.6 2021 11.64 0.23 2.33 2.56 (0.23) (0.42) (0.65) 13.55 22.55 1,534,067 0.01 1.76 24.0 R-3 shares 2025 11.31 0.25 0.88 1.13 (0.25) (0.38) (0.63) 11.81 10.57 90,789 0.57 2.21 30.0 2024 9.83 0.24 1.65 1.89 (0.23) (0.18) (0.41) 11.31 19.46 91,488 0.57 2.23 32.4 2023 10.18 0.21 0.17 0.38 (0.18) (0.55) (0.73) 9.83 3.83 86,339 0.58 2.07 14.4 2022 13.20 0.31 (2.43) (2.12) (0.26) (0.64) (0.90) 10.18 (17.18) 98,077 0.57 2.73 22.6 2021 11.35 0.16 2.27 2.43 (0.16) (0.42) (0.58) 13.20 21.95 132,449 0.57 1.23 24.0 R-5 shares 2025 11.54 0.29 0.90 1.19 (0.29) (0.38) (0.67) 12.06 10.92 92,061 0.26 2.56 30.0 2024 10.02 0.28 1.68 1.96 (0.26) (0.18) (0.44) 11.54 19.84 73,269 0.26 2.58 32.4 2023 10.36 0.25 0.17 0.42 (0.21) (0.55) (0.76) 10.02 4.25 81,215 0.27 2.40 14.4 2022 13.42 0.36 (2.48) (2.12) (0.30) (0.64) (0.94) 10.36 (16.95) 89,987 0.26 3.09 22.6 2021 11.54 0.20 2.30 2.50 (0.20) (0.42) (0.62) 13.42 22.20 123,237 0.26 1.54 24.0 (a) Calculated based on average shares outstanding during the period. 52

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![null053.jpg](ck0000898745-20260227_g116.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2030 FUND Class A shares 2025 $14.71 $0.32 $1.32 $1.64 ($0.32) ($0.48) ($0.80) $15.55 11.81%(b) $141,118 0.32% –% 2.20% 32.1% 2024 12.50 0.31 2.43 2.74 (0.28) (0.25) (0.53) 14.71 22.27 (b) 139,779 0.33 – 2.20 38.7 2023 13.12 0.24 0.32 0.56 (0.20) (0.98) (1.18) 12.50 4.42 (b) 121,782 0.38 (c) – 1.84 11.2 2022 17.49 0.42 (3.42) (3.00) (0.35) (1.02) (1.37) 13.12 (18.48) (b) 129,354 0.37 (c) – 2.83 31.1 2021 14.76 0.22 3.45 3.67 (0.22) (0.72) (0.94) 17.49 25.68 (b) 168,435 0.36 (c) – 1.34 24.0 Class J shares 2025 14.60 0.34 1.32 1.66 (0.35) (0.48) (0.83) 15.43 12.03 (b) 1,127,744 0.17 (d) 0.17 (e) 2.36 32.1 2024 12.41 0.33 2.42 2.75 (0.31) (0.25) (0.56) 14.60 22.52 (b) 1,133,064 0.16 (d) 0.17 (e) 2.39 38.7 2023 13.04 0.26 0.32 0.58 (0.23) (0.98) (1.21) 12.41 4.59 (b) 1,019,722 0.17 (d) 0.19 (e) 2.05 11.2 2022 17.39 0.44 (3.39) (2.95) (0.38) (1.02) (1.40) 13.04 (18.33) (b) 1,041,206 0.18 (d) 0.20 (e) 3.02 31.1 2021 14.67 0.26 3.43 3.69 (0.25) (0.72) (0.97) 17.39 26.00 (b) 1,388,404 0.18 (d) 0.20 (e) 1.56 24.0 Institutional shares 2025 14.68 0.37 1.32 1.69 (0.37) (0.48) (0.85) 15.52 12.21 3,610,149 0.01 – 2.54 32.1 2024 12.48 0.36 2.42 2.78 (0.33) (0.25) (0.58) 14.68 22.67 3,850,068 0.01 – 2.53 38.7 2023 13.10 0.29 0.32 0.61 (0.25) (0.98) (1.23) 12.48 4.84 3,387,912 0.01 – 2.21 11.2 2022 17.47 0.46 (3.40) (2.94) (0.41) (1.02) (1.43) 13.10 (18.22) 3,437,305 0.01 – 3.15 31.1 2021 14.73 0.28 3.45 3.73 (0.27) (0.72) (0.99) 17.47 26.21 4,530,236 0.01 – 1.71 24.0 R-3 shares 2025 14.55 0.29 1.30 1.59 (0.29) (0.48) (0.77) 15.37 11.59 145,283 0.57 – 1.99 32.1 2024 12.37 0.28 2.41 2.69 (0.26) (0.25) (0.51) 14.55 22.04 133,904 0.57 – 1.98 38.7 2023 12.99 0.21 0.32 0.53 (0.17) (0.98) (1.15) 12.37 4.20 123,110 0.57 – 1.64 11.2 2022 17.33 0.39 (3.39) (3.00) (0.32) (1.02) (1.34) 12.99 (18.66) 125,371 0.57 – 2.65 31.1 2021 14.63 0.19 3.42 3.61 (0.19) (0.72) (0.91) 17.33 25.46 176,532 0.57 – 1.14 24.0 R-5 shares 2025 14.64 0.34 1.31 1.65 (0.34) (0.48) (0.82) 15.47 11.93 188,240 0.26 – 2.32 32.1 2024 12.44 0.33 2.41 2.74 (0.29) (0.25) (0.54) 14.64 22.42 157,441 0.26 – 2.34 38.7 2023 13.07 0.26 0.31 0.57 (0.22) (0.98) (1.20) 12.44 4.49 167,033 0.26 – 1.99 11.2 2022 17.43 0.43 (3.40) (2.97) (0.37) (1.02) (1.39) 13.07 (18.42) 184,436 0.26 – 2.94 31.1 2021 14.70 0.25 3.44 3.69 (0.24) (0.72) (0.96) 17.43 25.88 242,659 0.26 – 1.49 24.0 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit. (d) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (e) Excludes expense reimbursement from Manager and/or Distributor. 53

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![null054.jpg](ck0000898745-20260227_g117.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2030 FUND Class A shares 2025 $14.71 $0.32 $1.32 $1.64 ($0.32) ($0.48) ($0.80) $15.55 11.81%(b) $141,118 0.32% –% 2.20% 32.1% 2024 12.50 0.31 2.43 2.74 (0.28) (0.25) (0.53) 14.71 22.27 (b) 139,779 0.33 – 2.20 38.7 2023 13.12 0.24 0.32 0.56 (0.20) (0.98) (1.18) 12.50 4.42 (b) 121,782 0.38 (c) – 1.84 11.2 2022 17.49 0.42 (3.42) (3.00) (0.35) (1.02) (1.37) 13.12 (18.48) (b) 129,354 0.37 (c) – 2.83 31.1 2021 14.76 0.22 3.45 3.67 (0.22) (0.72) (0.94) 17.49 25.68 (b) 168,435 0.36 (c) – 1.34 24.0 Class J shares 2025 14.60 0.34 1.32 1.66 (0.35) (0.48) (0.83) 15.43 12.03 (b) 1,127,744 0.17 (d) 0.17 (e) 2.36 32.1 2024 12.41 0.33 2.42 2.75 (0.31) (0.25) (0.56) 14.60 22.52 (b) 1,133,064 0.16 (d) 0.17 (e) 2.39 38.7 2023 13.04 0.26 0.32 0.58 (0.23) (0.98) (1.21) 12.41 4.59 (b) 1,019,722 0.17 (d) 0.19 (e) 2.05 11.2 2022 17.39 0.44 (3.39) (2.95) (0.38) (1.02) (1.40) 13.04 (18.33) (b) 1,041,206 0.18 (d) 0.20 (e) 3.02 31.1 2021 14.67 0.26 3.43 3.69 (0.25) (0.72) (0.97) 17.39 26.00 (b) 1,388,404 0.18 (d) 0.20 (e) 1.56 24.0 Institutional shares 2025 14.68 0.37 1.32 1.69 (0.37) (0.48) (0.85) 15.52 12.21 3,610,149 0.01 – 2.54 32.1 2024 12.48 0.36 2.42 2.78 (0.33) (0.25) (0.58) 14.68 22.67 3,850,068 0.01 – 2.53 38.7 2023 13.10 0.29 0.32 0.61 (0.25) (0.98) (1.23) 12.48 4.84 3,387,912 0.01 – 2.21 11.2 2022 17.47 0.46 (3.40) (2.94) (0.41) (1.02) (1.43) 13.10 (18.22) 3,437,305 0.01 – 3.15 31.1 2021 14.73 0.28 3.45 3.73 (0.27) (0.72) (0.99) 17.47 26.21 4,530,236 0.01 – 1.71 24.0 R-3 shares 2025 14.55 0.29 1.30 1.59 (0.29) (0.48) (0.77) 15.37 11.59 145,283 0.57 – 1.99 32.1 2024 12.37 0.28 2.41 2.69 (0.26) (0.25) (0.51) 14.55 22.04 133,904 0.57 – 1.98 38.7 2023 12.99 0.21 0.32 0.53 (0.17) (0.98) (1.15) 12.37 4.20 123,110 0.57 – 1.64 11.2 2022 17.33 0.39 (3.39) (3.00) (0.32) (1.02) (1.34) 12.99 (18.66) 125,371 0.57 – 2.65 31.1 2021 14.63 0.19 3.42 3.61 (0.19) (0.72) (0.91) 17.33 25.46 176,532 0.57 – 1.14 24.0 R-5 shares 2025 14.64 0.34 1.31 1.65 (0.34) (0.48) (0.82) 15.47 11.93 188,240 0.26 – 2.32 32.1 2024 12.44 0.33 2.41 2.74 (0.29) (0.25) (0.54) 14.64 22.42 157,441 0.26 – 2.34 38.7 2023 13.07 0.26 0.31 0.57 (0.22) (0.98) (1.20) 12.44 4.49 167,033 0.26 – 1.99 11.2 2022 17.43 0.43 (3.40) (2.97) (0.37) (1.02) (1.39) 13.07 (18.42) 184,436 0.26 – 2.94 31.1 2021 14.70 0.25 3.44 3.69 (0.24) (0.72) (0.96) 17.43 25.88 242,659 0.26 – 1.49 24.0 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit. (d) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (e) Excludes expense reimbursement from Manager and/or Distributor. 54

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![null055.jpg](ck0000898745-20260227_g118.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2035 FUND Institutional shares 2025 $13.41 $0.31 $1.35 $1.66 ($0.29) ($0.45) ($0.74) $14.33 13.16% $1,802,566 0.01% 2.33% 37.2% 2024 11.22 0.30 2.40 2.70 (0.27) (0.24) (0.51) 13.41 24.53 1,765,103 0.01 2.36 36.5 2023 11.43 0.23 0.37 0.60 (0.19) (0.62) (0.81) 11.22 5.54 1,439,309 0.01 1.97 12.3 2022 15.10 0.41 (3.07) (2.66) (0.40) (0.61) (1.01) 11.43 (18.85) 1,301,768 0.01 3.19 19.6 2021 12.34 0.24 3.24 3.48 (0.23) (0.49) (0.72) 15.10 28.95 1,468,727 0.01 1.66 19.5 R-3 shares 2025 13.06 0.23 1.32 1.55 (0.22) (0.45) (0.67) 13.94 12.56 101,596 0.57 1.76 37.2 2024 10.95 0.23 2.32 2.55 (0.20) (0.24) (0.44) 13.06 23.73 97,523 0.57 1.82 36.5 2023 11.17 0.16 0.37 0.53 (0.13) (0.62) (0.75) 10.95 4.94 86,441 0.58 1.42 12.3 2022 14.78 0.34 (3.02) (2.68) (0.32) (0.61) (0.93) 11.17 (19.30) 85,620 0.57 2.75 19.6 2021 12.09 0.15 3.19 3.34 (0.16) (0.49) (0.65) 14.78 28.31 110,352 0.57 1.11 19.5 R-5 shares 2025 13.29 0.27 1.34 1.61 (0.27) (0.45) (0.72) 14.18 12.82 127,839 0.26 2.07 37.2 2024 11.13 0.27 2.37 2.64 (0.24) (0.24) (0.48) 13.29 24.16 80,745 0.26 2.17 36.5 2023 11.34 0.20 0.37 0.57 (0.16) (0.62) (0.78) 11.13 5.30 83,168 0.27 1.77 12.3 2022 14.99 0.40 (3.08) (2.68) (0.36) (0.61) (0.97) 11.34 (19.06) 86,155 0.26 3.14 19.6 2021 12.26 0.21 3.21 3.42 (0.20) (0.49) (0.69) 14.99 28.61 113,877 0.26 1.45 19.5 (a) Calculated based on average shares outstanding during the period. 55

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![null056.jpg](ck0000898745-20260227_g119.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2035 FUND Institutional shares 2025 $13.41 $0.31 $1.35 $1.66 ($0.29) ($0.45) ($0.74) $14.33 13.16% $1,802,566 0.01% 2.33% 37.2% 2024 11.22 0.30 2.40 2.70 (0.27) (0.24) (0.51) 13.41 24.53 1,765,103 0.01 2.36 36.5 2023 11.43 0.23 0.37 0.60 (0.19) (0.62) (0.81) 11.22 5.54 1,439,309 0.01 1.97 12.3 2022 15.10 0.41 (3.07) (2.66) (0.40) (0.61) (1.01) 11.43 (18.85) 1,301,768 0.01 3.19 19.6 2021 12.34 0.24 3.24 3.48 (0.23) (0.49) (0.72) 15.10 28.95 1,468,727 0.01 1.66 19.5 R-3 shares 2025 13.06 0.23 1.32 1.55 (0.22) (0.45) (0.67) 13.94 12.56 101,596 0.57 1.76 37.2 2024 10.95 0.23 2.32 2.55 (0.20) (0.24) (0.44) 13.06 23.73 97,523 0.57 1.82 36.5 2023 11.17 0.16 0.37 0.53 (0.13) (0.62) (0.75) 10.95 4.94 86,441 0.58 1.42 12.3 2022 14.78 0.34 (3.02) (2.68) (0.32) (0.61) (0.93) 11.17 (19.30) 85,620 0.57 2.75 19.6 2021 12.09 0.15 3.19 3.34 (0.16) (0.49) (0.65) 14.78 28.31 110,352 0.57 1.11 19.5 R-5 shares 2025 13.29 0.27 1.34 1.61 (0.27) (0.45) (0.72) 14.18 12.82 127,839 0.26 2.07 37.2 2024 11.13 0.27 2.37 2.64 (0.24) (0.24) (0.48) 13.29 24.16 80,745 0.26 2.17 36.5 2023 11.34 0.20 0.37 0.57 (0.16) (0.62) (0.78) 11.13 5.30 83,168 0.27 1.77 12.3 2022 14.99 0.40 (3.08) (2.68) (0.36) (0.61) (0.97) 11.34 (19.06) 86,155 0.26 3.14 19.6 2021 12.26 0.21 3.21 3.42 (0.20) (0.49) (0.69) 14.99 28.61 113,877 0.26 1.45 19.5 (a) Calculated based on average shares outstanding during the period. 56

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![null057.jpg](ck0000898745-20260227_g120.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2040 FUND Class A shares 2025 $16.41 $0.27 $1.89 $2.16 ($0.26) ($0.81) ($1.07) $17.50 14.15%(b) $134,166 0.34%(c) –% 1.65% 38.9% 2024 13.54 0.27 3.22 3.49 (0.25) (0.37) (0.62) 16.41 26.30 (b) 121,589 0.35 (c) – 1.74 34.8 2023 13.86 0.19 0.59 0.78 (0.16) (0.94) (1.10) 13.54 5.96 (b) 99,851 0.38 (c) – 1.34 12.4 2022 18.81 0.46 (3.88) (3.42) (0.46) (1.07) (1.53) 13.86 (19.68) (b) 101,428 0.38 (c) – 2.94 23.8 2021 15.20 0.22 4.35 4.57 (0.23) (0.73) (0.96) 18.81 31.00 (b) 126,454 0.38 (c) – 1.24 20.0 Class J shares 2025 16.69 0.30 1.92 2.22 (0.29) (0.81) (1.10) 17.81 14.28 (b) 929,280 0.18 (d) 0.18 (e) 1.83 38.9 2024 13.76 0.30 3.28 3.58 (0.28) (0.37) (0.65) 16.69 26.56 (b) 875,149 0.17 (d) 0.18 (e) 1.93 34.8 2023 14.07 0.22 0.60 0.82 (0.19) (0.94) (1.13) 13.76 6.15 (b) 733,117 0.18 (d) 0.20 (e) 1.53 12.4 2022 19.07 0.50 (3.94) (3.44) (0.49) (1.07) (1.56) 14.07 (19.53) (b) 724,982 0.18 (d) 0.20 (e) 3.17 23.8 2021 15.39 0.26 4.41 4.67 (0.26) (0.73) (0.99) 19.07 31.30 (b) 948,713 0.18 (d) 0.21 (e) 1.44 20.0 Institutional shares 2025 16.92 0.34 1.95 2.29 (0.32) (0.81) (1.13) 18.08 14.50 3,388,019 0.01 – 2.01 38.9 2024 13.95 0.33 3.31 3.64 (0.30) (0.37) (0.67) 16.92 26.68 3,432,790 0.01 – 2.08 34.8 2023 14.24 0.24 0.62 0.86 (0.21) (0.94) (1.15) 13.95 6.42 2,798,971 0.01 – 1.70 12.4 2022 19.29 0.53 (3.99) (3.46) (0.52) (1.07) (1.59) 14.24 (19.43) 2,684,679 0.01 – 3.30 23.8 2021 15.55 0.29 4.46 4.75 (0.28) (0.73) (1.01) 19.29 31.56 3,429,237 0.01 – 1.61 20.0 R-3 shares 2025 16.53 0.24 1.91 2.15 (0.24) (0.81) (1.05) 17.63 13.89 127,899 0.57 – 1.48 38.9 2024 13.65 0.24 3.23 3.47 (0.22) (0.37) (0.59) 16.53 25.95 120,638 0.57 – 1.52 34.8 2023 13.95 0.16 0.61 0.77 (0.13) (0.94) (1.07) 13.65 5.83 99,443 0.57 – 1.13 12.4 2022 18.93 0.44 (3.93) (3.49) (0.42) (1.07) (1.49) 13.95 (19.88) 96,348 0.57 – 2.81 23.8 2021 15.29 0.18 4.39 4.57 (0.20) (0.73) (0.93) 18.93 30.81 129,032 0.57 – 1.02 20.0 R-5 shares 2025 16.78 0.30 1.92 2.22 (0.28) (0.81) (1.09) 17.91 14.21 178,469 0.26 – 1.83 38.9 2024 13.83 0.30 3.28 3.58 (0.26) (0.37) (0.63) 16.78 26.45 146,695 0.26 – 1.87 34.8 2023 14.13 0.21 0.61 0.82 (0.18) (0.94) (1.12) 13.83 6.12 142,339 0.26 – 1.49 12.4 2022 19.15 0.49 (3.97) (3.48) (0.47) (1.07) (1.54) 14.13 (19.62) 147,107 0.26 – 3.08 23.8 2021 15.45 0.25 4.42 4.67 (0.24) (0.73) (0.97) 19.15 31.19 187,926 0.26 – 1.39 20.0 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit. (d) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (e) Excludes expense reimbursement from Manager and/or Distributor. 57

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![null058.jpg](ck0000898745-20260227_g121.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2040 FUND Class A shares 2025 $16.41 $0.27 $1.89 $2.16 ($0.26) ($0.81) ($1.07) $17.50 14.15%(b) $134,166 0.34%(c) –% 1.65% 38.9% 2024 13.54 0.27 3.22 3.49 (0.25) (0.37) (0.62) 16.41 26.30 (b) 121,589 0.35 (c) – 1.74 34.8 2023 13.86 0.19 0.59 0.78 (0.16) (0.94) (1.10) 13.54 5.96 (b) 99,851 0.38 (c) – 1.34 12.4 2022 18.81 0.46 (3.88) (3.42) (0.46) (1.07) (1.53) 13.86 (19.68) (b) 101,428 0.38 (c) – 2.94 23.8 2021 15.20 0.22 4.35 4.57 (0.23) (0.73) (0.96) 18.81 31.00 (b) 126,454 0.38 (c) – 1.24 20.0 Class J shares 2025 16.69 0.30 1.92 2.22 (0.29) (0.81) (1.10) 17.81 14.28 (b) 929,280 0.18 (d) 0.18 (e) 1.83 38.9 2024 13.76 0.30 3.28 3.58 (0.28) (0.37) (0.65) 16.69 26.56 (b) 875,149 0.17 (d) 0.18 (e) 1.93 34.8 2023 14.07 0.22 0.60 0.82 (0.19) (0.94) (1.13) 13.76 6.15 (b) 733,117 0.18 (d) 0.20 (e) 1.53 12.4 2022 19.07 0.50 (3.94) (3.44) (0.49) (1.07) (1.56) 14.07 (19.53) (b) 724,982 0.18 (d) 0.20 (e) 3.17 23.8 2021 15.39 0.26 4.41 4.67 (0.26) (0.73) (0.99) 19.07 31.30 (b) 948,713 0.18 (d) 0.21 (e) 1.44 20.0 Institutional shares 2025 16.92 0.34 1.95 2.29 (0.32) (0.81) (1.13) 18.08 14.50 3,388,019 0.01 – 2.01 38.9 2024 13.95 0.33 3.31 3.64 (0.30) (0.37) (0.67) 16.92 26.68 3,432,790 0.01 – 2.08 34.8 2023 14.24 0.24 0.62 0.86 (0.21) (0.94) (1.15) 13.95 6.42 2,798,971 0.01 – 1.70 12.4 2022 19.29 0.53 (3.99) (3.46) (0.52) (1.07) (1.59) 14.24 (19.43) 2,684,679 0.01 – 3.30 23.8 2021 15.55 0.29 4.46 4.75 (0.28) (0.73) (1.01) 19.29 31.56 3,429,237 0.01 – 1.61 20.0 R-3 shares 2025 16.53 0.24 1.91 2.15 (0.24) (0.81) (1.05) 17.63 13.89 127,899 0.57 – 1.48 38.9 2024 13.65 0.24 3.23 3.47 (0.22) (0.37) (0.59) 16.53 25.95 120,638 0.57 – 1.52 34.8 2023 13.95 0.16 0.61 0.77 (0.13) (0.94) (1.07) 13.65 5.83 99,443 0.57 – 1.13 12.4 2022 18.93 0.44 (3.93) (3.49) (0.42) (1.07) (1.49) 13.95 (19.88) 96,348 0.57 – 2.81 23.8 2021 15.29 0.18 4.39 4.57 (0.20) (0.73) (0.93) 18.93 30.81 129,032 0.57 – 1.02 20.0 R-5 shares 2025 16.78 0.30 1.92 2.22 (0.28) (0.81) (1.09) 17.91 14.21 178,469 0.26 – 1.83 38.9 2024 13.83 0.30 3.28 3.58 (0.26) (0.37) (0.63) 16.78 26.45 146,695 0.26 – 1.87 34.8 2023 14.13 0.21 0.61 0.82 (0.18) (0.94) (1.12) 13.83 6.12 142,339 0.26 – 1.49 12.4 2022 19.15 0.49 (3.97) (3.48) (0.47) (1.07) (1.54) 14.13 (19.62) 147,107 0.26 – 3.08 23.8 2021 15.45 0.25 4.42 4.67 (0.24) (0.73) (0.97) 19.15 31.19 187,926 0.26 – 1.39 20.0 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit. (d) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (e) Excludes expense reimbursement from Manager and/or Distributor. 58

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![null059.jpg](ck0000898745-20260227_g122.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2045 FUND Institutional shares 2025 $15.03 $0.27 $1.94 $2.21 ($0.25) ($0.54) ($0.79) $16.45 15.58% $1,597,934 0.01% 1.76% 44.6% 2024 12.22 0.26 3.12 3.38 (0.24) (0.33) (0.57) 15.03 28.28 1,502,321 0.01 1.85 36.7 2023 12.43 0.18 0.63 0.81 (0.16) (0.86) (1.02) 12.22 6.92 1,152,378 0.01 1.46 11.4 2022 16.56 0.44 (3.51) (3.07) (0.47) (0.59) (1.06) 12.43 (19.76) 1,010,879 0.01 3.21 23.8 2021 12.95 0.23 4.05 4.28 (0.24) (0.43) (0.67) 16.56 33.82 1,139,261 0.01 1.50 19.2 R-3 shares 2025 14.46 0.18 1.87 2.05 (0.18) (0.54) (0.72) 15.79 14.92 83,240 0.57 1.21 44.6 2024 11.78 0.18 3.00 3.18 (0.17) (0.33) (0.50) 14.46 27.56 79,631 0.57 1.34 36.7 2023 12.01 0.11 0.61 0.72 (0.09) (0.86) (0.95) 11.78 6.35 68,323 0.58 0.92 11.4 2022 16.03 0.38 (3.43) (3.05) (0.38) (0.59) (0.97) 12.01 (20.17) 66,131 0.57 2.85 23.8 2021 12.57 0.14 3.91 4.05 (0.16) (0.43) (0.59) 16.03 32.97 88,634 0.57 0.93 19.2 R-5 shares 2025 14.71 0.22 1.90 2.12 (0.22) (0.54) (0.76) 16.07 15.26 110,179 0.26 1.51 44.6 2024 11.97 0.23 3.05 3.28 (0.21) (0.33) (0.54) 14.71 27.98 72,547 0.26 1.67 36.7 2023 12.20 0.16 0.60 0.76 (0.13) (0.86) (0.99) 11.97 6.60 68,730 0.27 1.28 11.4 2022 16.26 0.43 (3.47) (3.04) (0.43) (0.59) (1.02) 12.20 (19.89) 69,495 0.26 3.17 23.8 2021 12.74 0.19 3.96 4.15 (0.20) (0.43) (0.63) 16.26 33.37 91,388 0.26 1.28 19.2 (a) Calculated based on average shares outstanding during the period. 59

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![null060.jpg](ck0000898745-20260227_g123.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2045 FUND Institutional shares 2025 $15.03 $0.27 $1.94 $2.21 ($0.25) ($0.54) ($0.79) $16.45 15.58% $1,597,934 0.01% 1.76% 44.6% 2024 12.22 0.26 3.12 3.38 (0.24) (0.33) (0.57) 15.03 28.28 1,502,321 0.01 1.85 36.7 2023 12.43 0.18 0.63 0.81 (0.16) (0.86) (1.02) 12.22 6.92 1,152,378 0.01 1.46 11.4 2022 16.56 0.44 (3.51) (3.07) (0.47) (0.59) (1.06) 12.43 (19.76) 1,010,879 0.01 3.21 23.8 2021 12.95 0.23 4.05 4.28 (0.24) (0.43) (0.67) 16.56 33.82 1,139,261 0.01 1.50 19.2 R-3 shares 2025 14.46 0.18 1.87 2.05 (0.18) (0.54) (0.72) 15.79 14.92 83,240 0.57 1.21 44.6 2024 11.78 0.18 3.00 3.18 (0.17) (0.33) (0.50) 14.46 27.56 79,631 0.57 1.34 36.7 2023 12.01 0.11 0.61 0.72 (0.09) (0.86) (0.95) 11.78 6.35 68,323 0.58 0.92 11.4 2022 16.03 0.38 (3.43) (3.05) (0.38) (0.59) (0.97) 12.01 (20.17) 66,131 0.57 2.85 23.8 2021 12.57 0.14 3.91 4.05 (0.16) (0.43) (0.59) 16.03 32.97 88,634 0.57 0.93 19.2 R-5 shares 2025 14.71 0.22 1.90 2.12 (0.22) (0.54) (0.76) 16.07 15.26 110,179 0.26 1.51 44.6 2024 11.97 0.23 3.05 3.28 (0.21) (0.33) (0.54) 14.71 27.98 72,547 0.26 1.67 36.7 2023 12.20 0.16 0.60 0.76 (0.13) (0.86) (0.99) 11.97 6.60 68,730 0.27 1.28 11.4 2022 16.26 0.43 (3.47) (3.04) (0.43) (0.59) (1.02) 12.20 (19.89) 69,495 0.26 3.17 23.8 2021 12.74 0.19 3.96 4.15 (0.20) (0.43) (0.63) 16.26 33.37 91,388 0.26 1.28 19.2 (a) Calculated based on average shares outstanding during the period. 60

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![null061.jpg](ck0000898745-20260227_g124.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2050 FUND Class A shares 2025 $18.04 $0.21 $2.51 $2.72 ($0.21) ($0.84) ($1.05) $19.71 16.01%(b) $128,223 0.38%(c) –% 1.16% 44.7% 2024 14.54 0.22 3.92 4.14 (0.21) (0.43) (0.64) 18.04 29.14 (b) 113,939 0.38 (c) – 1.31 37.1 2023 14.82 0.15 0.81 0.96 (0.12) (1.12) (1.24) 14.54 6.94 (b) 90,827 0.38 (c) – 0.97 10.6 2022 20.06 0.49 (4.30) (3.81) (0.49) (0.94) (1.43) 14.82 (20.32) (b) 87,266 0.38 (c) – 2.93 26.9 2021 15.63 0.21 5.06 5.27 (0.22) (0.62) (0.84) 20.06 34.64 (b) 105,294 0.38 (c) – 1.11 21.0 Class J shares 2025 17.21 0.23 2.38 2.61 (0.24) (0.84) (1.08) 18.74 16.21 (b) 318,377 0.20 (d) 0.21 (e) 1.34 44.7 2024 13.90 0.25 3.73 3.98 (0.24) (0.43) (0.67) 17.21 29.33 (b) 293,958 0.19 (d) 0.20 (e) 1.51 37.1 2023 14.22 0.16 0.79 0.95 (0.15) (1.12) (1.27) 13.90 7.14 (b) 242,027 0.23 (d) 0.25 (e) 1.12 10.6 2022 19.30 0.51 (4.13) (3.62) (0.52) (0.94) (1.46) 14.22 (20.17) (b) 235,469 0.22 (d) 0.24 (e) 3.17 26.9 2021 15.06 0.23 4.88 5.11 (0.25) (0.62) (0.87) 19.30 34.90 (b) 312,540 0.21 (d) 0.24 (e) 1.29 21.0 Institutional shares 2025 17.98 0.28 2.49 2.77 (0.27) (0.84) (1.11) 19.64 16.43 2,728,357 0.01 – 1.56 44.7 2024 14.49 0.29 3.90 4.19 (0.27) (0.43) (0.70) 17.98 29.62 2,677,540 0.01 – 1.69 37.1 2023 14.78 0.20 0.81 1.01 (0.18) (1.12) (1.30) 14.49 7.31 2,116,797 0.01 – 1.32 10.6 2022 19.99 0.55 (4.26) (3.71) (0.56) (0.94) (1.50) 14.78 (19.96) 1,951,777 0.01 – 3.29 26.9 2021 15.57 0.28 5.04 5.32 (0.28) (0.62) (0.90) 19.99 35.15 2,422,742 0.01 – 1.49 21.0 R-3 shares 2025 17.58 0.18 2.43 2.61 (0.18) (0.84) (1.02) 19.17 15.80 104,059 0.57 – 1.02 44.7 2024 14.20 0.19 3.81 4.00 (0.19) (0.43) (0.62) 17.58 28.78 93,764 0.57 – 1.13 37.1 2023 14.50 0.11 0.80 0.91 (0.09) (1.12) (1.21) 14.20 6.73 76,894 0.57 – 0.76 10.6 2022 19.64 0.46 (4.20) (3.74) (0.46) (0.94) (1.40) 14.50 (20.41) 71,732 0.57 – 2.80 26.9 2021 15.33 0.16 4.97 5.13 (0.20) (0.62) (0.82) 19.64 34.33 94,767 0.57 – 0.87 21.0 R-5 shares 2025 17.85 0.24 2.46 2.70 (0.24) (0.84) (1.08) 19.47 16.09 141,677 0.26 – 1.36 44.7 2024 14.39 0.24 3.88 4.12 (0.23) (0.43) (0.66) 17.85 29.30 102,140 0.26 – 1.45 37.1 2023 14.69 0.17 0.79 0.96 (0.14) (1.12) (1.26) 14.39 7.00 93,301 0.26 – 1.16 10.6 2022 19.88 0.51 (4.25) (3.74) (0.51) (0.94) (1.45) 14.69 (20.18) 99,622 0.26 – 3.12 26.9 2021 15.49 0.23 5.02 5.25 (0.24) (0.62) (0.86) 19.88 34.84 128,805 0.26 – 1.27 21.0 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit. (d) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (e) Excludes expense reimbursement from Manager and/or Distributor. 61

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![null062.jpg](ck0000898745-20260227_g125.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2050 FUND Class A shares 2025 $18.04 $0.21 $2.51 $2.72 ($0.21) ($0.84) ($1.05) $19.71 16.01%(b) $128,223 0.38%(c) –% 1.16% 44.7% 2024 14.54 0.22 3.92 4.14 (0.21) (0.43) (0.64) 18.04 29.14 (b) 113,939 0.38 (c) – 1.31 37.1 2023 14.82 0.15 0.81 0.96 (0.12) (1.12) (1.24) 14.54 6.94 (b) 90,827 0.38 (c) – 0.97 10.6 2022 20.06 0.49 (4.30) (3.81) (0.49) (0.94) (1.43) 14.82 (20.32) (b) 87,266 0.38 (c) – 2.93 26.9 2021 15.63 0.21 5.06 5.27 (0.22) (0.62) (0.84) 20.06 34.64 (b) 105,294 0.38 (c) – 1.11 21.0 Class J shares 2025 17.21 0.23 2.38 2.61 (0.24) (0.84) (1.08) 18.74 16.21 (b) 318,377 0.20 (d) 0.21 (e) 1.34 44.7 2024 13.90 0.25 3.73 3.98 (0.24) (0.43) (0.67) 17.21 29.33 (b) 293,958 0.19 (d) 0.20 (e) 1.51 37.1 2023 14.22 0.16 0.79 0.95 (0.15) (1.12) (1.27) 13.90 7.14 (b) 242,027 0.23 (d) 0.25 (e) 1.12 10.6 2022 19.30 0.51 (4.13) (3.62) (0.52) (0.94) (1.46) 14.22 (20.17) (b) 235,469 0.22 (d) 0.24 (e) 3.17 26.9 2021 15.06 0.23 4.88 5.11 (0.25) (0.62) (0.87) 19.30 34.90 (b) 312,540 0.21 (d) 0.24 (e) 1.29 21.0 Institutional shares 2025 17.98 0.28 2.49 2.77 (0.27) (0.84) (1.11) 19.64 16.43 2,728,357 0.01 – 1.56 44.7 2024 14.49 0.29 3.90 4.19 (0.27) (0.43) (0.70) 17.98 29.62 2,677,540 0.01 – 1.69 37.1 2023 14.78 0.20 0.81 1.01 (0.18) (1.12) (1.30) 14.49 7.31 2,116,797 0.01 – 1.32 10.6 2022 19.99 0.55 (4.26) (3.71) (0.56) (0.94) (1.50) 14.78 (19.96) 1,951,777 0.01 – 3.29 26.9 2021 15.57 0.28 5.04 5.32 (0.28) (0.62) (0.90) 19.99 35.15 2,422,742 0.01 – 1.49 21.0 R-3 shares 2025 17.58 0.18 2.43 2.61 (0.18) (0.84) (1.02) 19.17 15.80 104,059 0.57 – 1.02 44.7 2024 14.20 0.19 3.81 4.00 (0.19) (0.43) (0.62) 17.58 28.78 93,764 0.57 – 1.13 37.1 2023 14.50 0.11 0.80 0.91 (0.09) (1.12) (1.21) 14.20 6.73 76,894 0.57 – 0.76 10.6 2022 19.64 0.46 (4.20) (3.74) (0.46) (0.94) (1.40) 14.50 (20.41) 71,732 0.57 – 2.80 26.9 2021 15.33 0.16 4.97 5.13 (0.20) (0.62) (0.82) 19.64 34.33 94,767 0.57 – 0.87 21.0 R-5 shares 2025 17.85 0.24 2.46 2.70 (0.24) (0.84) (1.08) 19.47 16.09 141,677 0.26 – 1.36 44.7 2024 14.39 0.24 3.88 4.12 (0.23) (0.43) (0.66) 17.85 29.30 102,140 0.26 – 1.45 37.1 2023 14.69 0.17 0.79 0.96 (0.14) (1.12) (1.26) 14.39 7.00 93,301 0.26 – 1.16 10.6 2022 19.88 0.51 (4.25) (3.74) (0.51) (0.94) (1.45) 14.69 (20.18) 99,622 0.26 – 3.12 26.9 2021 15.49 0.23 5.02 5.25 (0.24) (0.62) (0.86) 19.88 34.84 128,805 0.26 – 1.27 21.0 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit. (d) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (e) Excludes expense reimbursement from Manager and/or Distributor. 62

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![null063.jpg](ck0000898745-20260227_g126.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2055 FUND Institutional shares 2025 $16.89 $0.26 $2.41 $2.67 ($0.26) ($0.55) ($0.81) $18.75 16.61% $1,089,194 0.01% 1.52% 48.3% 2024 13.59 0.26 3.66 3.92 (0.25) (0.37) (0.62) 16.89 29.52 1,016,220 0.01 1.63 35.6 2023 13.75 0.18 0.78 0.96 (0.17) (0.95) (1.12) 13.59 7.38 744,667 0.01 1.28 10.3 2022 18.20 0.48 (3.92) (3.44) (0.51) (0.50) (1.01) 13.75 (19.95) 613,004 0.01 3.12 22.6 2021 13.87 0.23 4.71 4.94 (0.25) (0.36) (0.61) 18.20 36.38 658,064 0.01 1.37 18.9 R-3 shares 2025 16.21 0.16 2.31 2.47 (0.17) (0.55) (0.72) 17.96 16.00 56,461 0.58 0.98 48.3 2024 13.07 0.17 3.52 3.69 (0.18) (0.37) (0.55) 16.21 28.82 53,518 0.58 1.12 35.6 2023 13.27 0.10 0.74 0.84 (0.09) (0.95) (1.04) 13.07 6.72 43,506 0.58 0.74 10.3 2022 17.60 0.41 (3.82) (3.41) (0.42) (0.50) (0.92) 13.27 (20.37) 38,419 0.58 2.78 22.6 2021 13.45 0.13 4.56 4.69 (0.18) (0.36) (0.54) 17.60 35.53 48,174 0.58 0.81 18.9 R-5 shares 2025 16.56 0.20 2.38 2.58 (0.23) (0.55) (0.78) 18.36 16.35 70,119 0.27 1.21 48.3 2024 13.33 0.23 3.59 3.82 (0.22) (0.37) (0.59) 16.56 29.27 40,644 0.27 1.46 35.6 2023 13.52 0.17 0.72 0.89 (0.13) (0.95) (1.08) 13.33 7.00 35,853 0.27 1.22 10.3 2022 17.91 0.47 (3.90) (3.43) (0.46) (0.50) (0.96) 13.52 (20.14) 40,556 0.27 3.12 22.6 2021 13.66 0.20 4.63 4.83 (0.22) (0.36) (0.58) 17.91 36.08 50,443 0.27 1.19 18.9 (a) Calculated based on average shares outstanding during the period. 63

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![null064.jpg](ck0000898745-20260227_g127.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2055 FUND Institutional shares 2025 $16.89 $0.26 $2.41 $2.67 ($0.26) ($0.55) ($0.81) $18.75 16.61% $1,089,194 0.01% 1.52% 48.3% 2024 13.59 0.26 3.66 3.92 (0.25) (0.37) (0.62) 16.89 29.52 1,016,220 0.01 1.63 35.6 2023 13.75 0.18 0.78 0.96 (0.17) (0.95) (1.12) 13.59 7.38 744,667 0.01 1.28 10.3 2022 18.20 0.48 (3.92) (3.44) (0.51) (0.50) (1.01) 13.75 (19.95) 613,004 0.01 3.12 22.6 2021 13.87 0.23 4.71 4.94 (0.25) (0.36) (0.61) 18.20 36.38 658,064 0.01 1.37 18.9 R-3 shares 2025 16.21 0.16 2.31 2.47 (0.17) (0.55) (0.72) 17.96 16.00 56,461 0.58 0.98 48.3 2024 13.07 0.17 3.52 3.69 (0.18) (0.37) (0.55) 16.21 28.82 53,518 0.58 1.12 35.6 2023 13.27 0.10 0.74 0.84 (0.09) (0.95) (1.04) 13.07 6.72 43,506 0.58 0.74 10.3 2022 17.60 0.41 (3.82) (3.41) (0.42) (0.50) (0.92) 13.27 (20.37) 38,419 0.58 2.78 22.6 2021 13.45 0.13 4.56 4.69 (0.18) (0.36) (0.54) 17.60 35.53 48,174 0.58 0.81 18.9 R-5 shares 2025 16.56 0.20 2.38 2.58 (0.23) (0.55) (0.78) 18.36 16.35 70,119 0.27 1.21 48.3 2024 13.33 0.23 3.59 3.82 (0.22) (0.37) (0.59) 16.56 29.27 40,644 0.27 1.46 35.6 2023 13.52 0.17 0.72 0.89 (0.13) (0.95) (1.08) 13.33 7.00 35,853 0.27 1.22 10.3 2022 17.91 0.47 (3.90) (3.43) (0.46) (0.50) (0.96) 13.52 (20.14) 40,556 0.27 3.12 22.6 2021 13.66 0.20 4.63 4.83 (0.22) (0.36) (0.58) 17.91 36.08 50,443 0.27 1.19 18.9 (a) Calculated based on average shares outstanding during the period. 64

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![null065.jpg](ck0000898745-20260227_g128.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2060 FUND Class J shares 2025 $17.86 $0.21 $2.56 $2.77 ($0.22) ($0.54) ($0.76) $19.87 16.21%(b) $19,658 0.35%(c) 0.35%(d) 1.15% 47.4% 2024 14.36 0.23 3.87 4.10 (0.21) (0.39) (0.60) 17.86 29.17 (b) 17,409 0.35 (c) 0.36 (d) 1.37 37.3 2023 14.52 0.14 0.81 0.95 (0.12) (0.99) (1.11) 14.36 6.96 (b) 14,751 0.38 (c) 0.46 (d) 0.98 10.6 2022 19.13 0.48 (4.18) (3.70) (0.47) (0.44) (0.91) 14.52 (20.23) (b) 14,614 0.38 (c) 0.43 (d) 2.94 21.7 2021 14.47 0.17 5.04 5.21 (0.21) (0.34) (0.55) 19.13 36.62 (b) 18,803 0.38 (c) 0.43 (d) 0.94 18.3 Institutional shares 2025 18.07 0.28 2.59 2.87 (0.28) (0.54) (0.82) 20.12 16.61 1,088,171 0.01 – 1.50 47.4 2024 14.52 0.28 3.93 4.21 (0.27) (0.39) (0.66) 18.07 29.64 989,955 0.01 – 1.66 37.3 2023 14.68 0.19 0.82 1.01 (0.18) (0.99) (1.17) 14.52 7.30 726,855 0.01 – 1.28 10.6 2022 19.32 0.51 (4.17) (3.66) (0.54) (0.44) (0.98) 14.68 (19.92) 594,766 0.01 – 3.13 21.7 2021 14.60 0.24 5.08 5.32 (0.26) (0.34) (0.60) 19.32 37.12 629,044 0.02 – 1.32 18.3 R-3 shares 2025 17.68 0.17 2.53 2.70 (0.19) (0.54) (0.73) 19.65 15.94 40,226 0.58 – 0.95 47.4 2024 14.24 0.18 3.84 4.02 (0.19) (0.39) (0.58) 17.68 28.83 32,512 0.58 – 1.09 37.3 2023 14.41 0.10 0.82 0.92 (0.10) (0.99) (1.09) 14.24 6.79 24,915 0.58 – 0.71 10.6 2022 19.00 0.43 (4.14) (3.71) (0.44) (0.44) (0.88) 14.41 (20.41) 19,914 0.58 – 2.67 21.7 2021 14.38 0.13 5.01 5.14 (0.18) (0.34) (0.52) 19.00 36.38 22,111 0.58 – 0.75 18.3 R-5 shares 2025 17.87 0.22 2.56 2.78 (0.24) (0.54) (0.78) 19.87 16.29 46,564 0.27 – 1.22 47.4 2024 14.37 0.24 3.88 4.12 (0.23) (0.39) (0.62) 17.87 29.26 29,231 0.27 – 1.42 37.3 2023 14.54 0.18 0.78 0.96 (0.14) (0.99) (1.13) 14.37 7.05 27,953 0.27 – 1.18 10.6 2022 19.14 0.48 (4.15) (3.67) (0.49) (0.44) (0.93) 14.54 (20.10) 28,139 0.27 – 2.94 21.7 2021 14.48 0.20 5.02 5.22 (0.22) (0.34) (0.56) 19.14 36.74 30,796 0.27 – 1.13 18.3 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. 65

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![null066.jpg](ck0000898745-20260227_g129.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2060 FUND Class J shares 2025 $17.86 $0.21 $2.56 $2.77 ($0.22) ($0.54) ($0.76) $19.87 16.21%(b) $19,658 0.35%(c) 0.35%(d) 1.15% 47.4% 2024 14.36 0.23 3.87 4.10 (0.21) (0.39) (0.60) 17.86 29.17 (b) 17,409 0.35 (c) 0.36 (d) 1.37 37.3 2023 14.52 0.14 0.81 0.95 (0.12) (0.99) (1.11) 14.36 6.96 (b) 14,751 0.38 (c) 0.46 (d) 0.98 10.6 2022 19.13 0.48 (4.18) (3.70) (0.47) (0.44) (0.91) 14.52 (20.23) (b) 14,614 0.38 (c) 0.43 (d) 2.94 21.7 2021 14.47 0.17 5.04 5.21 (0.21) (0.34) (0.55) 19.13 36.62 (b) 18,803 0.38 (c) 0.43 (d) 0.94 18.3 Institutional shares 2025 18.07 0.28 2.59 2.87 (0.28) (0.54) (0.82) 20.12 16.61 1,088,171 0.01 – 1.50 47.4 2024 14.52 0.28 3.93 4.21 (0.27) (0.39) (0.66) 18.07 29.64 989,955 0.01 – 1.66 37.3 2023 14.68 0.19 0.82 1.01 (0.18) (0.99) (1.17) 14.52 7.30 726,855 0.01 – 1.28 10.6 2022 19.32 0.51 (4.17) (3.66) (0.54) (0.44) (0.98) 14.68 (19.92) 594,766 0.01 – 3.13 21.7 2021 14.60 0.24 5.08 5.32 (0.26) (0.34) (0.60) 19.32 37.12 629,044 0.02 – 1.32 18.3 R-3 shares 2025 17.68 0.17 2.53 2.70 (0.19) (0.54) (0.73) 19.65 15.94 40,226 0.58 – 0.95 47.4 2024 14.24 0.18 3.84 4.02 (0.19) (0.39) (0.58) 17.68 28.83 32,512 0.58 – 1.09 37.3 2023 14.41 0.10 0.82 0.92 (0.10) (0.99) (1.09) 14.24 6.79 24,915 0.58 – 0.71 10.6 2022 19.00 0.43 (4.14) (3.71) (0.44) (0.44) (0.88) 14.41 (20.41) 19,914 0.58 – 2.67 21.7 2021 14.38 0.13 5.01 5.14 (0.18) (0.34) (0.52) 19.00 36.38 22,111 0.58 – 0.75 18.3 R-5 shares 2025 17.87 0.22 2.56 2.78 (0.24) (0.54) (0.78) 19.87 16.29 46,564 0.27 – 1.22 47.4 2024 14.37 0.24 3.88 4.12 (0.23) (0.39) (0.62) 17.87 29.26 29,231 0.27 – 1.42 37.3 2023 14.54 0.18 0.78 0.96 (0.14) (0.99) (1.13) 14.37 7.05 27,953 0.27 – 1.18 10.6 2022 19.14 0.48 (4.15) (3.67) (0.49) (0.44) (0.93) 14.54 (20.10) 28,139 0.27 – 2.94 21.7 2021 14.48 0.20 5.02 5.22 (0.22) (0.34) (0.56) 19.14 36.74 30,796 0.27 – 1.13 18.3 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. 66

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![null067.jpg](ck0000898745-20260227_g130.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2065 FUND Institutional shares 2025 $14.73 $0.22 $2.13 $2.35 ($0.22) ($0.32) ($0.54) $16.54 16.57% $257,069 0.03% 1.45% 48.3% 2024 11.79 0.21 3.20 3.41 (0.21) (0.26) (0.47) 14.73 29.47 204,205 0.03 1.53 36.6 2023 11.71 0.14 0.68 0.82 (0.14) (0.60) (0.74) 11.79 7.29 126,627 0.04 (b) 1.18 13.7 2022 15.19 0.38 (3.30) (2.92) (0.42) (0.14) (0.56) 11.71 (19.92) 83,762 0.05 (b) 2.96 28.4 2021 11.33 0.15 4.03 4.18 (0.19) (0.13) (0.32) 15.19 37.37 73,568 0.08 (b) 1.04 22.5 R-3 shares 2025 14.52 0.14 2.10 2.24 (0.15) (0.32) (0.47) 16.29 15.94 12,318 0.58 0.91 48.3 2024 11.63 0.14 3.16 3.30 (0.15) (0.26) (0.41) 14.52 28.87 9,360 0.59 1.04 36.6 2023 11.57 0.08 0.66 0.74 (0.08) (0.60) (0.68) 11.63 6.65 7,872 0.59 (b) 0.63 13.7 2022 15.04 0.30 (3.26) (2.96) (0.37) (0.14) (0.51) 11.57 (20.37) 4,642 0.59 (b) 2.34 28.4 2021 11.21 0.07 4.00 4.07 (0.11) (0.13) (0.24) 15.04 36.70 4,115 0.60 (b) 0.49 22.5 R-5 shares 2025 14.61 0.17 2.13 2.30 (0.20) (0.32) (0.52) 16.39 16.31 14,343 0.27 1.14 48.3 2024 11.70 0.18 3.18 3.36 (0.19) (0.26) (0.45) 14.61 29.17 6,777 0.28 1.34 36.6 2023 11.63 0.15 0.63 0.78 (0.11) (0.60) (0.71) 11.70 7.04 4,707 0.28 (b) 1.25 13.7 2022 15.10 0.33 (3.26) (2.93) (0.40) (0.14) (0.54) 11.63 (20.11) 5,055 0.28 (b) 2.57 28.4 2021 11.27 0.14 3.99 4.13 (0.17) (0.13) (0.30) 15.10 37.09 3,917 0.29 (b) 0.98 22.5 (a) Calculated based on average shares outstanding during the period. (b) Subject to Manager's contractual expense limit. 67

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![null068.jpg](ck0000898745-20260227_g131.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2065 FUND Institutional shares 2025 $14.73 $0.22 $2.13 $2.35 ($0.22) ($0.32) ($0.54) $16.54 16.57% $257,069 0.03% 1.45% 48.3% 2024 11.79 0.21 3.20 3.41 (0.21) (0.26) (0.47) 14.73 29.47 204,205 0.03 1.53 36.6 2023 11.71 0.14 0.68 0.82 (0.14) (0.60) (0.74) 11.79 7.29 126,627 0.04 (b) 1.18 13.7 2022 15.19 0.38 (3.30) (2.92) (0.42) (0.14) (0.56) 11.71 (19.92) 83,762 0.05 (b) 2.96 28.4 2021 11.33 0.15 4.03 4.18 (0.19) (0.13) (0.32) 15.19 37.37 73,568 0.08 (b) 1.04 22.5 R-3 shares 2025 14.52 0.14 2.10 2.24 (0.15) (0.32) (0.47) 16.29 15.94 12,318 0.58 0.91 48.3 2024 11.63 0.14 3.16 3.30 (0.15) (0.26) (0.41) 14.52 28.87 9,360 0.59 1.04 36.6 2023 11.57 0.08 0.66 0.74 (0.08) (0.60) (0.68) 11.63 6.65 7,872 0.59 (b) 0.63 13.7 2022 15.04 0.30 (3.26) (2.96) (0.37) (0.14) (0.51) 11.57 (20.37) 4,642 0.59 (b) 2.34 28.4 2021 11.21 0.07 4.00 4.07 (0.11) (0.13) (0.24) 15.04 36.70 4,115 0.60 (b) 0.49 22.5 R-5 shares 2025 14.61 0.17 2.13 2.30 (0.20) (0.32) (0.52) 16.39 16.31 14,343 0.27 1.14 48.3 2024 11.70 0.18 3.18 3.36 (0.19) (0.26) (0.45) 14.61 29.17 6,777 0.28 1.34 36.6 2023 11.63 0.15 0.63 0.78 (0.11) (0.60) (0.71) 11.70 7.04 4,707 0.28 (b) 1.25 13.7 2022 15.10 0.33 (3.26) (2.93) (0.40) (0.14) (0.54) 11.63 (20.11) 5,055 0.28 (b) 2.57 28.4 2021 11.27 0.14 3.99 4.13 (0.17) (0.13) (0.30) 15.10 37.09 3,917 0.29 (b) 0.98 22.5 (a) Calculated based on average shares outstanding during the period. (b) Subject to Manager's contractual expense limit. 68

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![null069.jpg](ck0000898745-20260227_g132.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2070 FUND Class J shares 2025 $12.86 $0.11 $1.92 $2.03 ($0.15) ($0.18) ($0.33) $14.56 16.22%(b) $1,032 0.30%(c) 3.36%(d) 0.81% 47.9% 2024 10.09 0.11 2.83 2.94 (0.17) – (0.17) 12.86 29.36 (b) 330 0.30 (c) 8.13 (d) 0.89 54.0 2023(e) 10.00 0.02 0.07 0.09 – – – 10.09 0.90 (b),(f) 125 0.30 (c),(g) 62.61 (d),(g) 0.24 (g) 94.1 (g) Institutional shares 2025 12.83 0.16 1.91 2.07 (0.18) (0.18) (0.36) 14.54 16.57 86,735 0.05 (h) – 1.20 47.9 2024 10.06 0.13 2.81 2.94 (0.17) – (0.17) 12.83 29.45 41,700 0.05 (h) – 1.08 54.0 2023(e) 10.00 0.03 0.03 0.06 – – – 10.06 0.60 (f) 8,476 0.05 (g),(h) – 0.49 (g) 94.1 (g) R-3 shares 2025 12.71 0.10 1.87 1.97 (0.14) (0.18) (0.32) 14.36 15.91 1,699 0.61 (h) – 0.73 47.9 2024 10.02 0.06 2.80 2.86 (0.17) – (0.17) 12.71 28.76 772 0.62 (h) – 0.45 54.0 2023(e) 10.00 (0.01) 0.03 0.02 – – – 10.02 0.20 (f) 282 0.62 (g),(h) – (0.14) (g) 94.1 (g) R-5 shares 2025 12.78 0.13 1.89 2.02 (0.16) (0.18) (0.34) 14.46 16.26 2,793 0.30 (h) – 0.96 47.9 2024 10.04 0.09 2.82 2.91 (0.17) – (0.17) 12.78 29.20 1,074 0.31 (h) – 0.72 54.0 2023(e) 10.00 0.02 0.02 0.04 – – – 10.04 0.40 (f) 136 0.31 (g),(h) – 0.23 (g) 94.1 (g) (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Period from March 1, 2023, date operations commenced, through October 31, 2023. (f) Total return amounts have not been annualized. (g) Computed on an annualized basis. (h) Subject to Manager's contractual expense limit. 69

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![null070.jpg](ck0000898745-20260227_g133.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME 2070 FUND Class J shares 2025 $12.86 $0.11 $1.92 $2.03 ($0.15) ($0.18) ($0.33) $14.56 16.22%(b) $1,032 0.30%(c) 3.36%(d) 0.81% 47.9% 2024 10.09 0.11 2.83 2.94 (0.17) – (0.17) 12.86 29.36 (b) 330 0.30 (c) 8.13 (d) 0.89 54.0 2023(e) 10.00 0.02 0.07 0.09 – – – 10.09 0.90 (b),(f) 125 0.30 (c),(g) 62.61 (d),(g) 0.24 (g) 94.1 (g) Institutional shares 2025 12.83 0.16 1.91 2.07 (0.18) (0.18) (0.36) 14.54 16.57 86,735 0.05 (h) – 1.20 47.9 2024 10.06 0.13 2.81 2.94 (0.17) – (0.17) 12.83 29.45 41,700 0.05 (h) – 1.08 54.0 2023(e) 10.00 0.03 0.03 0.06 – – – 10.06 0.60 (f) 8,476 0.05 (g),(h) – 0.49 (g) 94.1 (g) R-3 shares 2025 12.71 0.10 1.87 1.97 (0.14) (0.18) (0.32) 14.36 15.91 1,699 0.61 (h) – 0.73 47.9 2024 10.02 0.06 2.80 2.86 (0.17) – (0.17) 12.71 28.76 772 0.62 (h) – 0.45 54.0 2023(e) 10.00 (0.01) 0.03 0.02 – – – 10.02 0.20 (f) 282 0.62 (g),(h) – (0.14) (g) 94.1 (g) R-5 shares 2025 12.78 0.13 1.89 2.02 (0.16) (0.18) (0.34) 14.46 16.26 2,793 0.30 (h) – 0.96 47.9 2024 10.04 0.09 2.82 2.91 (0.17) – (0.17) 12.78 29.20 1,074 0.31 (h) – 0.72 54.0 2023(e) 10.00 0.02 0.02 0.04 – – – 10.04 0.40 (f) 136 0.31 (g),(h) – 0.23 (g) 94.1 (g) (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Period from March 1, 2023, date operations commenced, through October 31, 2023. (f) Total return amounts have not been annualized. (g) Computed on an annualized basis. (h) Subject to Manager's contractual expense limit. 70

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![null071.jpg](ck0000898745-20260227_g134.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID 2015 FUND Class J shares 2025 $11.64 $0.32 $0.85 $1.17 ($0.33) ($0.05) ($0.38) $12.43 10.40%(b) $421,875 0.17%(c) 0.18%(d) 2.69% 19.5% 2024 10.26 0.32 1.43 1.75 (0.32) (0.05) (0.37) 11.64 17.29 (b) 271,360 0.16 (c) 0.18 (d) 2.89 23.8 2023 10.44 0.22 0.12 0.34 (0.21) (0.31) (0.52) 10.26 3.27 (b) 168,885 0.17 (c) 0.19 (d) 2.07 15.8 2022 12.91 0.23 (2.00) (1.77) (0.28) (0.42) (0.70) 10.44 (14.50) (b) 96,345 0.23 (c) 0.25 (d) 2.07 18.1 2021 11.75 0.39 1.34 1.73 (0.48) (0.09) (0.57) 12.91 15.07 (b) 55,458 0.23 (c) 0.25 (d) 3.10 20.6 Institutional shares 2025 11.71 0.39 0.80 1.19 (0.34) (0.05) (0.39) 12.51 10.52 12,172 0.05 (e) – 3.30 19.5 2024 10.32 0.38 1.39 1.77 (0.33) (0.05) (0.38) 11.71 17.39 16,141 0.05 (e) – 3.39 23.8 2023 10.49 0.26 0.10 0.36 (0.22) (0.31) (0.53) 10.32 3.48 16,961 0.05 (e) – 2.49 15.8 2022 12.96 0.31 (2.07) (1.76) (0.29) (0.42) (0.71) 10.49 (14.35) 18,704 0.05 (e) – 2.72 18.1 2021 11.80 0.48 1.27 1.75 (0.50) (0.09) (0.59) 12.96 15.21 22,888 0.05 (e) – 3.85 20.6 R-6 shares 2025 11.73 0.38 0.83 1.21 (0.35) (0.05) (0.40) 12.54 10.62 38,109 0.02 (e) – 3.21 19.5 2024 10.34 0.37 1.40 1.77 (0.33) (0.05) (0.38) 11.73 17.39 36,979 0.02 (e) – 3.23 23.8 2023 10.51 0.28 0.08 0.36 (0.22) (0.31) (0.53) 10.34 3.51 31,245 0.02 (e) – 2.66 15.8 2022 12.98 0.32 (2.07) (1.75) (0.30) (0.42) (0.72) 10.51 (14.30) 46,216 0.02 (e) – 2.78 18.1 2021 11.82 0.50 1.26 1.76 (0.51) (0.09) (0.60) 12.98 15.21 58,859 0.02 (e) – 3.98 20.6 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 71

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![null072.jpg](ck0000898745-20260227_g135.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID 2015 FUND Class J shares 2025 $11.64 $0.32 $0.85 $1.17 ($0.33) ($0.05) ($0.38) $12.43 10.40%(b) $421,875 0.17%(c) 0.18%(d) 2.69% 19.5% 2024 10.26 0.32 1.43 1.75 (0.32) (0.05) (0.37) 11.64 17.29 (b) 271,360 0.16 (c) 0.18 (d) 2.89 23.8 2023 10.44 0.22 0.12 0.34 (0.21) (0.31) (0.52) 10.26 3.27 (b) 168,885 0.17 (c) 0.19 (d) 2.07 15.8 2022 12.91 0.23 (2.00) (1.77) (0.28) (0.42) (0.70) 10.44 (14.50) (b) 96,345 0.23 (c) 0.25 (d) 2.07 18.1 2021 11.75 0.39 1.34 1.73 (0.48) (0.09) (0.57) 12.91 15.07 (b) 55,458 0.23 (c) 0.25 (d) 3.10 20.6 Institutional shares 2025 11.71 0.39 0.80 1.19 (0.34) (0.05) (0.39) 12.51 10.52 12,172 0.05 (e) – 3.30 19.5 2024 10.32 0.38 1.39 1.77 (0.33) (0.05) (0.38) 11.71 17.39 16,141 0.05 (e) – 3.39 23.8 2023 10.49 0.26 0.10 0.36 (0.22) (0.31) (0.53) 10.32 3.48 16,961 0.05 (e) – 2.49 15.8 2022 12.96 0.31 (2.07) (1.76) (0.29) (0.42) (0.71) 10.49 (14.35) 18,704 0.05 (e) – 2.72 18.1 2021 11.80 0.48 1.27 1.75 (0.50) (0.09) (0.59) 12.96 15.21 22,888 0.05 (e) – 3.85 20.6 R-6 shares 2025 11.73 0.38 0.83 1.21 (0.35) (0.05) (0.40) 12.54 10.62 38,109 0.02 (e) – 3.21 19.5 2024 10.34 0.37 1.40 1.77 (0.33) (0.05) (0.38) 11.73 17.39 36,979 0.02 (e) – 3.23 23.8 2023 10.51 0.28 0.08 0.36 (0.22) (0.31) (0.53) 10.34 3.51 31,245 0.02 (e) – 2.66 15.8 2022 12.98 0.32 (2.07) (1.75) (0.30) (0.42) (0.72) 10.51 (14.30) 46,216 0.02 (e) – 2.78 18.1 2021 11.82 0.50 1.26 1.76 (0.51) (0.09) (0.60) 12.98 15.21 58,859 0.02 (e) – 3.98 20.6 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 72

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![null073.jpg](ck0000898745-20260227_g136.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID 2020 FUND Class J shares 2025 $12.04 $0.34 $0.98 $1.32 ($0.34) ($0.04) ($0.38) $12.98 11.32%(b) $390,600 0.17%(c) 0.17%(d) 2.77% 28.1% 2024 10.46 0.34 1.62 1.96 (0.33) (0.05) (0.38) 12.04 19.03 (b) 341,998 0.15 (c) 0.17 (d) 2.90 25.4 2023 10.80 0.22 0.15 0.37 (0.21) (0.50) (0.71) 10.46 3.57 (b) 265,194 0.16 (c) 0.18 (d) 2.05 18.1 2022 13.47 0.28 (2.19) (1.91) (0.30) (0.46) (0.76) 10.80 (15.02) (b) 205,008 0.18 (c) 0.20 (d) 2.38 20.4 2021 11.92 0.37 1.76 2.13 (0.47) (0.11) (0.58) 13.47 18.31 (b) 184,994 0.19 (c) 0.21 (d) 2.87 16.2 Institutional shares 2025 12.12 0.38 0.96 1.34 (0.35) (0.04) (0.39) 13.07 11.43 33,850 0.05 (e) – 3.09 28.1 2024 10.53 0.36 1.62 1.98 (0.34) (0.05) (0.39) 12.12 19.09 36,532 0.05 (e) – 3.11 25.4 2023 10.86 0.26 0.13 0.39 (0.22) (0.50) (0.72) 10.53 3.77 38,504 0.05 (e) – 2.39 18.1 2022 13.54 0.33 (2.24) (1.91) (0.31) (0.46) (0.77) 10.86 (14.95) 42,581 0.05 (e) – 2.78 20.4 2021 11.97 0.45 1.71 2.16 (0.48) (0.11) (0.59) 13.54 18.50 58,554 0.05 (e) – 3.44 16.2 R-6 shares 2025 12.12 0.36 0.99 1.35 (0.36) (0.04) (0.40) 13.07 11.47 181,694 0.02 (e) – 2.90 28.1 2024 10.53 0.37 1.61 1.98 (0.34) (0.05) (0.39) 12.12 19.13 161,618 0.02 (e) – 3.17 25.4 2023 10.86 0.27 0.13 0.40 (0.23) (0.50) (0.73) 10.53 3.81 146,660 0.02 (e) – 2.44 18.1 2022 13.54 0.33 (2.24) (1.91) (0.31) (0.46) (0.77) 10.86 (14.91) 187,400 0.02 (e) – 2.77 20.4 2021 11.97 0.49 1.68 2.17 (0.49) (0.11) (0.60) 13.54 18.54 233,947 0.02 (e) – 3.78 16.2 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 73

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![null074.jpg](ck0000898745-20260227_g137.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID 2020 FUND Class J shares 2025 $12.04 $0.34 $0.98 $1.32 ($0.34) ($0.04) ($0.38) $12.98 11.32%(b) $390,600 0.17%(c) 0.17%(d) 2.77% 28.1% 2024 10.46 0.34 1.62 1.96 (0.33) (0.05) (0.38) 12.04 19.03 (b) 341,998 0.15 (c) 0.17 (d) 2.90 25.4 2023 10.80 0.22 0.15 0.37 (0.21) (0.50) (0.71) 10.46 3.57 (b) 265,194 0.16 (c) 0.18 (d) 2.05 18.1 2022 13.47 0.28 (2.19) (1.91) (0.30) (0.46) (0.76) 10.80 (15.02) (b) 205,008 0.18 (c) 0.20 (d) 2.38 20.4 2021 11.92 0.37 1.76 2.13 (0.47) (0.11) (0.58) 13.47 18.31 (b) 184,994 0.19 (c) 0.21 (d) 2.87 16.2 Institutional shares 2025 12.12 0.38 0.96 1.34 (0.35) (0.04) (0.39) 13.07 11.43 33,850 0.05 (e) – 3.09 28.1 2024 10.53 0.36 1.62 1.98 (0.34) (0.05) (0.39) 12.12 19.09 36,532 0.05 (e) – 3.11 25.4 2023 10.86 0.26 0.13 0.39 (0.22) (0.50) (0.72) 10.53 3.77 38,504 0.05 (e) – 2.39 18.1 2022 13.54 0.33 (2.24) (1.91) (0.31) (0.46) (0.77) 10.86 (14.95) 42,581 0.05 (e) – 2.78 20.4 2021 11.97 0.45 1.71 2.16 (0.48) (0.11) (0.59) 13.54 18.50 58,554 0.05 (e) – 3.44 16.2 R-6 shares 2025 12.12 0.36 0.99 1.35 (0.36) (0.04) (0.40) 13.07 11.47 181,694 0.02 (e) – 2.90 28.1 2024 10.53 0.37 1.61 1.98 (0.34) (0.05) (0.39) 12.12 19.13 161,618 0.02 (e) – 3.17 25.4 2023 10.86 0.27 0.13 0.40 (0.23) (0.50) (0.73) 10.53 3.81 146,660 0.02 (e) – 2.44 18.1 2022 13.54 0.33 (2.24) (1.91) (0.31) (0.46) (0.77) 10.86 (14.91) 187,400 0.02 (e) – 2.77 20.4 2021 11.97 0.49 1.68 2.17 (0.49) (0.11) (0.60) 13.54 18.54 233,947 0.02 (e) – 3.78 16.2 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 74

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![null075.jpg](ck0000898745-20260227_g138.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID 2025 FUND Class J shares 2025 $13.00 $0.33 $1.22 $1.55 ($0.35) ($0.07) ($0.42) $14.13 12.27%(b) $836,376 0.16%(c) 0.16%(d) 2.52% 24.4% 2024 11.15 0.33 1.93 2.26 (0.33) (0.08) (0.41) 13.00 20.64 (b) 627,376 0.14 (c) 0.16 (d) 2.61 22.6 2023 11.43 0.21 0.23 0.44 (0.21) (0.51) (0.72) 11.15 4.03 (b) 421,507 0.15 (c) 0.17 (d) 1.81 12.3 2022 14.27 0.29 (2.42) (2.13) (0.32) (0.39) (0.71) 11.43 (15.71) (b) 272,529 0.18 (c) 0.20 (d) 2.30 13.6 2021 12.20 0.37 2.25 2.62 (0.46) (0.09) (0.55) 14.27 21.94 (b) 207,361 0.19 (c) 0.21 (d) 2.69 14.2 Institutional shares 2025 13.07 0.39 1.19 1.58 (0.36) (0.07) (0.43) 14.22 12.45 56,365 0.05 (e) – 2.94 24.4 2024 11.21 0.39 1.89 2.28 (0.34) (0.08) (0.42) 13.07 20.70 59,042 0.05 (e) – 3.09 22.6 2023 11.48 0.25 0.21 0.46 (0.22) (0.51) (0.73) 11.21 4.20 61,975 0.05 (e) – 2.13 12.3 2022 14.33 0.34 (2.47) (2.13) (0.33) (0.39) (0.72) 11.48 (15.63) 64,787 0.05 (e) – 2.70 13.6 2021 12.24 0.45 2.20 2.65 (0.47) (0.09) (0.56) 14.33 22.14 75,042 0.05 (e) – 3.27 14.2 R-6 shares 2025 13.08 0.36 1.22 1.58 (0.36) (0.07) (0.43) 14.23 12.47 236,018 0.02 (e) – 2.71 24.4 2024 11.21 0.36 1.93 2.29 (0.34) (0.08) (0.42) 13.08 20.83 200,740 0.02 (e) – 2.86 22.6 2023 11.49 0.25 0.21 0.46 (0.23) (0.51) (0.74) 11.21 4.15 158,302 0.02 (e) – 2.19 12.3 2022 14.34 0.35 (2.48) (2.13) (0.33) (0.39) (0.72) 11.49 (15.60) 178,008 0.02 (e) – 2.73 13.6 2021 12.25 0.47 2.19 2.66 (0.48) (0.09) (0.57) 14.34 22.16 206,615 0.02 (e) – 3.42 14.2 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 75

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![null076.jpg](ck0000898745-20260227_g139.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID 2025 FUND Class J shares 2025 $13.00 $0.33 $1.22 $1.55 ($0.35) ($0.07) ($0.42) $14.13 12.27%(b) $836,376 0.16%(c) 0.16%(d) 2.52% 24.4% 2024 11.15 0.33 1.93 2.26 (0.33) (0.08) (0.41) 13.00 20.64 (b) 627,376 0.14 (c) 0.16 (d) 2.61 22.6 2023 11.43 0.21 0.23 0.44 (0.21) (0.51) (0.72) 11.15 4.03 (b) 421,507 0.15 (c) 0.17 (d) 1.81 12.3 2022 14.27 0.29 (2.42) (2.13) (0.32) (0.39) (0.71) 11.43 (15.71) (b) 272,529 0.18 (c) 0.20 (d) 2.30 13.6 2021 12.20 0.37 2.25 2.62 (0.46) (0.09) (0.55) 14.27 21.94 (b) 207,361 0.19 (c) 0.21 (d) 2.69 14.2 Institutional shares 2025 13.07 0.39 1.19 1.58 (0.36) (0.07) (0.43) 14.22 12.45 56,365 0.05 (e) – 2.94 24.4 2024 11.21 0.39 1.89 2.28 (0.34) (0.08) (0.42) 13.07 20.70 59,042 0.05 (e) – 3.09 22.6 2023 11.48 0.25 0.21 0.46 (0.22) (0.51) (0.73) 11.21 4.20 61,975 0.05 (e) – 2.13 12.3 2022 14.33 0.34 (2.47) (2.13) (0.33) (0.39) (0.72) 11.48 (15.63) 64,787 0.05 (e) – 2.70 13.6 2021 12.24 0.45 2.20 2.65 (0.47) (0.09) (0.56) 14.33 22.14 75,042 0.05 (e) – 3.27 14.2 R-6 shares 2025 13.08 0.36 1.22 1.58 (0.36) (0.07) (0.43) 14.23 12.47 236,018 0.02 (e) – 2.71 24.4 2024 11.21 0.36 1.93 2.29 (0.34) (0.08) (0.42) 13.08 20.83 200,740 0.02 (e) – 2.86 22.6 2023 11.49 0.25 0.21 0.46 (0.23) (0.51) (0.74) 11.21 4.15 158,302 0.02 (e) – 2.19 12.3 2022 14.34 0.35 (2.48) (2.13) (0.33) (0.39) (0.72) 11.49 (15.60) 178,008 0.02 (e) – 2.73 13.6 2021 12.25 0.47 2.19 2.66 (0.48) (0.09) (0.57) 14.34 22.16 206,615 0.02 (e) – 3.42 14.2 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 76

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![null077.jpg](ck0000898745-20260227_g140.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID 2030 FUND Class J shares 2025 $13.40 $0.30 $1.48 $1.78 ($0.33) ($0.08) ($0.41) $14.77 13.62%(b) $921,591 0.17%(c) 0.17%(d) 2.22% 25.4% 2024 11.23 0.29 2.29 2.58 (0.32) (0.09) (0.41) 13.40 23.35 (b) 599,229 0.15 (c) 0.16 (d) 2.29 28.9 2023 11.63 0.16 0.31 0.47 (0.17) (0.70) (0.87) 11.23 4.25 (b) 317,418 0.16 (c) 0.18 (d) 1.41 11.5 2022 14.78 0.28 (2.67) (2.39) (0.32) (0.44) (0.76) 11.63 (17.04) (b) 203,444 0.19 (c) 0.21 (d) 2.17 16.7 2021 12.32 0.37 2.67 3.04 (0.45) (0.13) (0.58) 14.78 25.23 (b) 177,896 0.20 (c) 0.22 (d) 2.61 14.9 Institutional shares 2025 13.51 0.38 1.43 1.81 (0.34) (0.08) (0.42) 14.90 13.74 76,499 0.05 (e) – 2.74 25.4 2024 11.31 0.38 2.24 2.62 (0.33) (0.09) (0.42) 13.51 23.54 77,524 0.05 (e) – 2.97 28.9 2023 11.71 0.19 0.30 0.49 (0.19) (0.70) (0.89) 11.31 4.35 83,006 0.05 (e) – 1.65 11.5 2022 14.86 0.33 (2.70) (2.37) (0.34) (0.44) (0.78) 11.71 (16.87) 77,067 0.05 (e) – 2.56 16.7 2021 12.38 0.41 2.66 3.07 (0.46) (0.13) (0.59) 14.86 25.38 92,984 0.05 (e) – 2.93 14.9 R-6 shares 2025 13.50 0.34 1.47 1.81 (0.34) (0.08) (0.42) 14.89 13.80 393,066 0.01 (e) – 2.47 25.4 2024 11.31 0.35 2.27 2.62 (0.34) (0.09) (0.43) 13.50 23.49 305,260 0.02 (e) – 2.74 28.9 2023 11.71 0.20 0.29 0.49 (0.19) (0.70) (0.89) 11.31 4.39 245,018 0.02 (e) – 1.70 11.5 2022 14.86 0.33 (2.70) (2.37) (0.34) (0.44) (0.78) 11.71 (16.84) 237,340 0.02 (e) – 2.54 16.7 2021 12.37 0.45 2.63 3.08 (0.46) (0.13) (0.59) 14.86 25.52 261,855 0.02 (e) – 3.23 14.9 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 77

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![null078.jpg](ck0000898745-20260227_g141.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID 2030 FUND Class J shares 2025 $13.40 $0.30 $1.48 $1.78 ($0.33) ($0.08) ($0.41) $14.77 13.62%(b) $921,591 0.17%(c) 0.17%(d) 2.22% 25.4% 2024 11.23 0.29 2.29 2.58 (0.32) (0.09) (0.41) 13.40 23.35 (b) 599,229 0.15 (c) 0.16 (d) 2.29 28.9 2023 11.63 0.16 0.31 0.47 (0.17) (0.70) (0.87) 11.23 4.25 (b) 317,418 0.16 (c) 0.18 (d) 1.41 11.5 2022 14.78 0.28 (2.67) (2.39) (0.32) (0.44) (0.76) 11.63 (17.04) (b) 203,444 0.19 (c) 0.21 (d) 2.17 16.7 2021 12.32 0.37 2.67 3.04 (0.45) (0.13) (0.58) 14.78 25.23 (b) 177,896 0.20 (c) 0.22 (d) 2.61 14.9 Institutional shares 2025 13.51 0.38 1.43 1.81 (0.34) (0.08) (0.42) 14.90 13.74 76,499 0.05 (e) – 2.74 25.4 2024 11.31 0.38 2.24 2.62 (0.33) (0.09) (0.42) 13.51 23.54 77,524 0.05 (e) – 2.97 28.9 2023 11.71 0.19 0.30 0.49 (0.19) (0.70) (0.89) 11.31 4.35 83,006 0.05 (e) – 1.65 11.5 2022 14.86 0.33 (2.70) (2.37) (0.34) (0.44) (0.78) 11.71 (16.87) 77,067 0.05 (e) – 2.56 16.7 2021 12.38 0.41 2.66 3.07 (0.46) (0.13) (0.59) 14.86 25.38 92,984 0.05 (e) – 2.93 14.9 R-6 shares 2025 13.50 0.34 1.47 1.81 (0.34) (0.08) (0.42) 14.89 13.80 393,066 0.01 (e) – 2.47 25.4 2024 11.31 0.35 2.27 2.62 (0.34) (0.09) (0.43) 13.50 23.49 305,260 0.02 (e) – 2.74 28.9 2023 11.71 0.20 0.29 0.49 (0.19) (0.70) (0.89) 11.31 4.39 245,018 0.02 (e) – 1.70 11.5 2022 14.86 0.33 (2.70) (2.37) (0.34) (0.44) (0.78) 11.71 (16.84) 237,340 0.02 (e) – 2.54 16.7 2021 12.37 0.45 2.63 3.08 (0.46) (0.13) (0.59) 14.86 25.52 261,855 0.02 (e) – 3.23 14.9 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 78

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![null079.jpg](ck0000898745-20260227_g142.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID 2035 FUND Class J shares 2025 $14.33 $0.30 $1.77 $2.07 ($0.34) ($0.11) ($0.45) $15.95 14.89%(b) $563,757 0.17%(c) 0.17%(d) 2.07% 28.3% 2024 11.82 0.28 2.65 2.93 (0.31) (0.11) (0.42) 14.33 25.26 (b) 382,526 0.17 (c) 0.18 (d) 2.08 21.5 2023 12.20 0.17 0.41 0.58 (0.17) (0.79) (0.96) 11.82 4.99 (b) 226,807 0.17 (c) 0.19 (d) 1.37 13.1 2022 15.50 0.31 (2.88) (2.57) (0.34) (0.39) (0.73) 12.20 (17.38) (b) 158,186 0.20 (c) 0.22 (d) 2.27 12.6 2021 12.56 0.33 3.14 3.47 (0.42) (0.11) (0.53) 15.50 28.22 (b) 143,236 0.21 (c) 0.24 (d) 2.22 10.6 Institutional shares 2025 14.44 0.37 1.73 2.10 (0.35) (0.11) (0.46) 16.08 15.03 84,443 0.05 (e) – 2.48 28.3 2024 11.90 0.36 2.61 2.97 (0.32) (0.11) (0.43) 14.44 25.44 79,917 0.05 (e) – 2.61 21.5 2023 12.28 0.19 0.41 0.60 (0.19) (0.79) (0.98) 11.90 5.09 77,698 0.05 (e) – 1.55 13.1 2022 15.59 0.34 (2.90) (2.56) (0.36) (0.39) (0.75) 12.28 (17.25) 71,210 0.05 (e) – 2.50 12.6 2021 12.62 0.40 3.12 3.52 (0.44) (0.11) (0.55) 15.59 28.46 79,002 0.05 (e) – 2.75 10.6 R-6 shares 2025 14.46 0.34 1.77 2.11 (0.36) (0.11) (0.47) 16.10 15.04 309,571 0.02 (e) – 2.33 28.3 2024 11.92 0.33 2.65 2.98 (0.33) (0.11) (0.44) 14.46 25.43 251,756 0.02 (e) – 2.40 21.5 2023 12.30 0.20 0.40 0.60 (0.19) (0.79) (0.98) 11.92 5.12 183,007 0.02 (e) – 1.62 13.1 2022 15.61 0.35 (2.91) (2.56) (0.36) (0.39) (0.75) 12.30 (17.21) 167,461 0.02 (e) – 2.55 12.6 2021 12.64 0.42 3.10 3.52 (0.44) (0.11) (0.55) 15.61 28.45 180,539 0.02 (e) – 2.84 10.6 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 79

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![null080.jpg](ck0000898745-20260227_g143.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID 2035 FUND Class J shares 2025 $14.33 $0.30 $1.77 $2.07 ($0.34) ($0.11) ($0.45) $15.95 14.89%(b) $563,757 0.17%(c) 0.17%(d) 2.07% 28.3% 2024 11.82 0.28 2.65 2.93 (0.31) (0.11) (0.42) 14.33 25.26 (b) 382,526 0.17 (c) 0.18 (d) 2.08 21.5 2023 12.20 0.17 0.41 0.58 (0.17) (0.79) (0.96) 11.82 4.99 (b) 226,807 0.17 (c) 0.19 (d) 1.37 13.1 2022 15.50 0.31 (2.88) (2.57) (0.34) (0.39) (0.73) 12.20 (17.38) (b) 158,186 0.20 (c) 0.22 (d) 2.27 12.6 2021 12.56 0.33 3.14 3.47 (0.42) (0.11) (0.53) 15.50 28.22 (b) 143,236 0.21 (c) 0.24 (d) 2.22 10.6 Institutional shares 2025 14.44 0.37 1.73 2.10 (0.35) (0.11) (0.46) 16.08 15.03 84,443 0.05 (e) – 2.48 28.3 2024 11.90 0.36 2.61 2.97 (0.32) (0.11) (0.43) 14.44 25.44 79,917 0.05 (e) – 2.61 21.5 2023 12.28 0.19 0.41 0.60 (0.19) (0.79) (0.98) 11.90 5.09 77,698 0.05 (e) – 1.55 13.1 2022 15.59 0.34 (2.90) (2.56) (0.36) (0.39) (0.75) 12.28 (17.25) 71,210 0.05 (e) – 2.50 12.6 2021 12.62 0.40 3.12 3.52 (0.44) (0.11) (0.55) 15.59 28.46 79,002 0.05 (e) – 2.75 10.6 R-6 shares 2025 14.46 0.34 1.77 2.11 (0.36) (0.11) (0.47) 16.10 15.04 309,571 0.02 (e) – 2.33 28.3 2024 11.92 0.33 2.65 2.98 (0.33) (0.11) (0.44) 14.46 25.43 251,756 0.02 (e) – 2.40 21.5 2023 12.30 0.20 0.40 0.60 (0.19) (0.79) (0.98) 11.92 5.12 183,007 0.02 (e) – 1.62 13.1 2022 15.61 0.35 (2.91) (2.56) (0.36) (0.39) (0.75) 12.30 (17.21) 167,461 0.02 (e) – 2.55 12.6 2021 12.64 0.42 3.10 3.52 (0.44) (0.11) (0.55) 15.61 28.45 180,539 0.02 (e) – 2.84 10.6 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 80

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![null081.jpg](ck0000898745-20260227_g144.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID 2040 FUND Class J shares 2025 $14.93 $0.27 $2.13 $2.40 ($0.32) ($0.14) ($0.46) $16.87 16.57%(b) $716,575 0.18%(c) 0.18%(d) 1.76% 29.8% 2024 12.05 0.25 3.04 3.29 (0.28) (0.13) (0.41) 14.93 27.74 (b) 420,423 0.16 (c) 0.18 (d) 1.79 18.7 2023 12.41 0.15 0.51 0.66 (0.16) (0.86) (1.02) 12.05 5.74 (b) 234,630 0.18 (c) 0.20 (d) 1.21 10.8 2022 15.84 0.30 (2.98) (2.68) (0.35) (0.40) (0.75) 12.41 (17.72) (b) 138,511 0.21 (c) 0.23 (d) 2.18 13.5 2021 12.58 0.30 3.48 3.78 (0.38) (0.14) (0.52) 15.84 30.64 (b) 115,496 0.22 (c) 0.24 (d) 1.98 12.9 Institutional shares 2025 15.06 0.35 2.09 2.44 (0.33) (0.14) (0.47) 17.03 16.72 79,643 0.05 (e) – 2.28 29.8 2024 12.14 0.31 3.03 3.34 (0.29) (0.13) (0.42) 15.06 27.97 75,455 0.05 (e) – 2.21 18.7 2023 12.50 0.18 0.50 0.68 (0.18) (0.86) (1.04) 12.14 5.83 67,043 0.05 (e) – 1.47 10.8 2022 15.93 0.36 (3.02) (2.66) (0.37) (0.40) (0.77) 12.50 (17.53) 58,528 0.05 (e) – 2.58 13.5 2021 12.64 0.36 3.47 3.83 (0.40) (0.14) (0.54) 15.93 30.90 68,006 0.05 (e) – 2.42 12.9 R-6 shares 2025 15.08 0.31 2.14 2.45 (0.33) (0.14) (0.47) 17.06 16.80 395,084 0.02 (e) – 1.97 29.8 2024 12.16 0.30 3.05 3.35 (0.30) (0.13) (0.43) 15.08 27.95 284,795 0.02 (e) – 2.14 18.7 2023 12.52 0.19 0.49 0.68 (0.18) (0.86) (1.04) 12.16 5.86 210,538 0.02 (e) – 1.52 10.8 2022 15.96 0.35 (3.02) (2.67) (0.37) (0.40) (0.77) 12.52 (17.54) 187,431 0.02 (e) – 2.50 13.5 2021 12.66 0.38 3.46 3.84 (0.40) (0.14) (0.54) 15.96 30.97 194,948 0.02 (e) – 2.56 12.9 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 81

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![null082.jpg](ck0000898745-20260227_g145.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID 2040 FUND Class J shares 2025 $14.93 $0.27 $2.13 $2.40 ($0.32) ($0.14) ($0.46) $16.87 16.57%(b) $716,575 0.18%(c) 0.18%(d) 1.76% 29.8% 2024 12.05 0.25 3.04 3.29 (0.28) (0.13) (0.41) 14.93 27.74 (b) 420,423 0.16 (c) 0.18 (d) 1.79 18.7 2023 12.41 0.15 0.51 0.66 (0.16) (0.86) (1.02) 12.05 5.74 (b) 234,630 0.18 (c) 0.20 (d) 1.21 10.8 2022 15.84 0.30 (2.98) (2.68) (0.35) (0.40) (0.75) 12.41 (17.72) (b) 138,511 0.21 (c) 0.23 (d) 2.18 13.5 2021 12.58 0.30 3.48 3.78 (0.38) (0.14) (0.52) 15.84 30.64 (b) 115,496 0.22 (c) 0.24 (d) 1.98 12.9 Institutional shares 2025 15.06 0.35 2.09 2.44 (0.33) (0.14) (0.47) 17.03 16.72 79,643 0.05 (e) – 2.28 29.8 2024 12.14 0.31 3.03 3.34 (0.29) (0.13) (0.42) 15.06 27.97 75,455 0.05 (e) – 2.21 18.7 2023 12.50 0.18 0.50 0.68 (0.18) (0.86) (1.04) 12.14 5.83 67,043 0.05 (e) – 1.47 10.8 2022 15.93 0.36 (3.02) (2.66) (0.37) (0.40) (0.77) 12.50 (17.53) 58,528 0.05 (e) – 2.58 13.5 2021 12.64 0.36 3.47 3.83 (0.40) (0.14) (0.54) 15.93 30.90 68,006 0.05 (e) – 2.42 12.9 R-6 shares 2025 15.08 0.31 2.14 2.45 (0.33) (0.14) (0.47) 17.06 16.80 395,084 0.02 (e) – 1.97 29.8 2024 12.16 0.30 3.05 3.35 (0.30) (0.13) (0.43) 15.08 27.95 284,795 0.02 (e) – 2.14 18.7 2023 12.52 0.19 0.49 0.68 (0.18) (0.86) (1.04) 12.16 5.86 210,538 0.02 (e) – 1.52 10.8 2022 15.96 0.35 (3.02) (2.67) (0.37) (0.40) (0.77) 12.52 (17.54) 187,431 0.02 (e) – 2.50 13.5 2021 12.66 0.38 3.46 3.84 (0.40) (0.14) (0.54) 15.96 30.97 194,948 0.02 (e) – 2.56 12.9 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 82

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![null083.jpg](ck0000898745-20260227_g146.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID 2045 FUND Class J shares 2025 $15.63 $0.28 $2.43 $2.71 ($0.30) ($0.18) ($0.48) $17.86 17.88%(b) $293,165 0.19%(c) 0.19%(d) 1.72% 35.2% 2024 12.42 0.24 3.38 3.62 (0.26) (0.15) (0.41) 15.63 29.59 (b) 212,485 0.18 (c) 0.19 (d) 1.65 20.2 2023 12.82 0.15 0.59 0.74 (0.16) (0.98) (1.14) 12.42 6.18 (b) 125,834 0.21 (c) 0.23 (d) 1.15 10.8 2022 16.35 0.30 (3.09) (2.79) (0.37) (0.37) (0.74) 12.82 (17.90) (b) 86,099 0.24 (c) 0.26 (d) 2.10 15.9 2021 12.71 0.28 3.83 4.11 (0.35) (0.12) (0.47) 16.35 32.92 (b) 70,004 0.26 (c) 0.28 (d) 1.81 13.5 Institutional shares 2025 15.74 0.34 2.42 2.76 (0.32) (0.18) (0.50) 18.00 18.08 64,961 0.05 (e) – 2.07 35.2 2024 12.51 0.30 3.36 3.66 (0.28) (0.15) (0.43) 15.74 29.69 62,223 0.05 (e) – 2.06 20.2 2023 12.90 0.18 0.59 0.77 (0.18) (0.98) (1.16) 12.51 6.39 56,859 0.05 (e) – 1.38 10.8 2022 16.44 0.36 (3.14) (2.78) (0.39) (0.37) (0.76) 12.90 (17.75) 49,445 0.05 (e) – 2.52 15.9 2021 12.77 0.34 3.82 4.16 (0.37) (0.12) (0.49) 16.44 33.20 55,809 0.05 (e) – 2.22 13.5 R-6 shares 2025 15.77 0.30 2.47 2.77 (0.33) (0.18) (0.51) 18.03 18.08 283,766 0.02 (e) – 1.83 35.2 2024 12.53 0.28 3.39 3.67 (0.28) (0.15) (0.43) 15.77 29.76 208,027 0.02 (e) – 1.90 20.2 2023 12.92 0.18 0.59 0.77 (0.18) (0.98) (1.16) 12.53 6.42 147,185 0.02 (e) – 1.39 10.8 2022 16.46 0.36 (3.14) (2.78) (0.39) (0.37) (0.76) 12.92 (17.71) 119,980 0.02 (e) – 2.49 15.9 2021 12.79 0.35 3.81 4.16 (0.37) (0.12) (0.49) 16.46 33.18 122,476 0.02 (e) – 2.30 13.5 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 83

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![null084.jpg](ck0000898745-20260227_g147.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID 2045 FUND Class J shares 2025 $15.63 $0.28 $2.43 $2.71 ($0.30) ($0.18) ($0.48) $17.86 17.88%(b) $293,165 0.19%(c) 0.19%(d) 1.72% 35.2% 2024 12.42 0.24 3.38 3.62 (0.26) (0.15) (0.41) 15.63 29.59 (b) 212,485 0.18 (c) 0.19 (d) 1.65 20.2 2023 12.82 0.15 0.59 0.74 (0.16) (0.98) (1.14) 12.42 6.18 (b) 125,834 0.21 (c) 0.23 (d) 1.15 10.8 2022 16.35 0.30 (3.09) (2.79) (0.37) (0.37) (0.74) 12.82 (17.90) (b) 86,099 0.24 (c) 0.26 (d) 2.10 15.9 2021 12.71 0.28 3.83 4.11 (0.35) (0.12) (0.47) 16.35 32.92 (b) 70,004 0.26 (c) 0.28 (d) 1.81 13.5 Institutional shares 2025 15.74 0.34 2.42 2.76 (0.32) (0.18) (0.50) 18.00 18.08 64,961 0.05 (e) – 2.07 35.2 2024 12.51 0.30 3.36 3.66 (0.28) (0.15) (0.43) 15.74 29.69 62,223 0.05 (e) – 2.06 20.2 2023 12.90 0.18 0.59 0.77 (0.18) (0.98) (1.16) 12.51 6.39 56,859 0.05 (e) – 1.38 10.8 2022 16.44 0.36 (3.14) (2.78) (0.39) (0.37) (0.76) 12.90 (17.75) 49,445 0.05 (e) – 2.52 15.9 2021 12.77 0.34 3.82 4.16 (0.37) (0.12) (0.49) 16.44 33.20 55,809 0.05 (e) – 2.22 13.5 R-6 shares 2025 15.77 0.30 2.47 2.77 (0.33) (0.18) (0.51) 18.03 18.08 283,766 0.02 (e) – 1.83 35.2 2024 12.53 0.28 3.39 3.67 (0.28) (0.15) (0.43) 15.77 29.76 208,027 0.02 (e) – 1.90 20.2 2023 12.92 0.18 0.59 0.77 (0.18) (0.98) (1.16) 12.53 6.42 147,185 0.02 (e) – 1.39 10.8 2022 16.46 0.36 (3.14) (2.78) (0.39) (0.37) (0.76) 12.92 (17.71) 119,980 0.02 (e) – 2.49 15.9 2021 12.79 0.35 3.81 4.16 (0.37) (0.12) (0.49) 16.46 33.18 122,476 0.02 (e) – 2.30 13.5 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 84

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![null085.jpg](ck0000898745-20260227_g148.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID 2050 FUND Class J shares 2025 $16.10 $0.26 $2.70 $2.96 ($0.28) ($0.20) ($0.48) $18.58 18.95%(b) $238,731 0.21%(c) 0.21%(d) 1.53% 33.7% 2024 12.64 0.22 3.64 3.86 (0.24) (0.16) (0.40) 16.10 31.00 (b) 173,862 0.20 (c) 0.22 (d) 1.44 18.1 2023 12.98 0.14 0.64 0.78 (0.15) (0.97) (1.12) 12.64 6.52 (b) 103,198 0.23 (c) 0.25 (d) 1.05 8.5 2022 16.55 0.29 (3.14) (2.85) (0.36) (0.36) (0.72) 12.98 (18.01) (b) 70,033 0.26 (c) 0.28 (d) 2.05 16.3 2021 12.73 0.26 4.02 4.28 (0.32) (0.14) (0.46) 16.55 34.17 (b) 57,162 0.28 (c) 0.30 (d) 1.65 12.1 Institutional shares 2025 16.20 0.30 2.72 3.02 (0.31) (0.20) (0.51) 18.71 19.18 68,856 0.05 (e) – 1.79 33.7 2024 12.71 0.27 3.64 3.91 (0.26) (0.16) (0.42) 16.20 31.24 56,693 0.05 (e) – 1.78 18.1 2023 13.05 0.17 0.64 0.81 (0.18) (0.97) (1.15) 12.71 6.68 46,298 0.05 (e) – 1.32 8.5 2022 16.63 0.36 (3.19) (2.83) (0.39) (0.36) (0.75) 13.05 (17.85) 39,987 0.05 (e) – 2.47 16.3 2021 12.77 0.32 4.02 4.34 (0.34) (0.14) (0.48) 16.63 34.60 43,480 0.05 (e) – 2.04 12.1 R-6 shares 2025 16.20 0.27 2.76 3.03 (0.31) (0.20) (0.51) 18.72 19.27 299,635 0.02 (e) – 1.63 33.7 2024 12.72 0.26 3.64 3.90 (0.26) (0.16) (0.42) 16.20 31.17 200,935 0.02 (e) – 1.72 18.1 2023 13.05 0.17 0.65 0.82 (0.18) (0.97) (1.15) 12.72 6.80 139,155 0.02 (e) – 1.30 8.5 2022 16.63 0.35 (3.17) (2.82) (0.40) (0.36) (0.76) 13.05 (17.83) 108,293 0.02 (e) – 2.45 16.3 2021 12.78 0.32 4.01 4.33 (0.34) (0.14) (0.48) 16.63 34.53 105,040 0.02 (e) – 2.08 12.1 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 85

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![null086.jpg](ck0000898745-20260227_g149.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID 2050 FUND Class J shares 2025 $16.10 $0.26 $2.70 $2.96 ($0.28) ($0.20) ($0.48) $18.58 18.95%(b) $238,731 0.21%(c) 0.21%(d) 1.53% 33.7% 2024 12.64 0.22 3.64 3.86 (0.24) (0.16) (0.40) 16.10 31.00 (b) 173,862 0.20 (c) 0.22 (d) 1.44 18.1 2023 12.98 0.14 0.64 0.78 (0.15) (0.97) (1.12) 12.64 6.52 (b) 103,198 0.23 (c) 0.25 (d) 1.05 8.5 2022 16.55 0.29 (3.14) (2.85) (0.36) (0.36) (0.72) 12.98 (18.01) (b) 70,033 0.26 (c) 0.28 (d) 2.05 16.3 2021 12.73 0.26 4.02 4.28 (0.32) (0.14) (0.46) 16.55 34.17 (b) 57,162 0.28 (c) 0.30 (d) 1.65 12.1 Institutional shares 2025 16.20 0.30 2.72 3.02 (0.31) (0.20) (0.51) 18.71 19.18 68,856 0.05 (e) – 1.79 33.7 2024 12.71 0.27 3.64 3.91 (0.26) (0.16) (0.42) 16.20 31.24 56,693 0.05 (e) – 1.78 18.1 2023 13.05 0.17 0.64 0.81 (0.18) (0.97) (1.15) 12.71 6.68 46,298 0.05 (e) – 1.32 8.5 2022 16.63 0.36 (3.19) (2.83) (0.39) (0.36) (0.75) 13.05 (17.85) 39,987 0.05 (e) – 2.47 16.3 2021 12.77 0.32 4.02 4.34 (0.34) (0.14) (0.48) 16.63 34.60 43,480 0.05 (e) – 2.04 12.1 R-6 shares 2025 16.20 0.27 2.76 3.03 (0.31) (0.20) (0.51) 18.72 19.27 299,635 0.02 (e) – 1.63 33.7 2024 12.72 0.26 3.64 3.90 (0.26) (0.16) (0.42) 16.20 31.17 200,935 0.02 (e) – 1.72 18.1 2023 13.05 0.17 0.65 0.82 (0.18) (0.97) (1.15) 12.72 6.80 139,155 0.02 (e) – 1.30 8.5 2022 16.63 0.35 (3.17) (2.82) (0.40) (0.36) (0.76) 13.05 (17.83) 108,293 0.02 (e) – 2.45 16.3 2021 12.78 0.32 4.01 4.33 (0.34) (0.14) (0.48) 16.63 34.53 105,040 0.02 (e) – 2.08 12.1 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 86

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![null087.jpg](ck0000898745-20260227_g150.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID 2055 FUND Class J shares 2025 $16.57 $0.24 $2.85 $3.09 ($0.29) ($0.20) ($0.49) $19.17 19.19%(b) $162,437 0.26%(c) 0.26%(d) 1.40% 33.7% 2024 13.00 0.20 3.76 3.96 (0.24) (0.15) (0.39) 16.57 30.91 (b) 106,439 0.26 (c) 0.27 (d) 1.30 16.8 2023 13.31 0.12 0.68 0.80 (0.16) (0.95) (1.11) 13.00 6.44 (b) 55,536 0.30 (c) 0.35 (d) 0.91 7.3 2022 16.92 0.29 (3.22) (2.93) (0.37) (0.31) (0.68) 13.31 (18.06) (b) 32,146 0.30 (c) 0.39 (d) 1.96 13.4 2021 12.86 0.21 4.28 4.49 (0.30) (0.13) (0.43) 16.92 35.47 (b) 24,427 0.30 (c) 0.44 (d) 1.30 9.1 Institutional shares 2025 16.71 0.33 2.82 3.15 (0.31) (0.20) (0.51) 19.35 19.46 38,515 0.05 (e) – 1.90 33.7 2024 13.10 0.28 3.75 4.03 (0.27) (0.15) (0.42) 16.71 31.21 37,805 0.05 (e) – 1.81 16.8 2023 13.40 0.17 0.66 0.83 (0.18) (0.95) (1.13) 13.10 6.70 30,824 0.05 (e) – 1.27 7.3 2022 17.01 0.36 (3.26) (2.90) (0.40) (0.31) (0.71) 13.40 (17.82) 24,173 0.05 (e) – 2.45 13.4 2021 12.92 0.28 4.27 4.55 (0.33) (0.13) (0.46) 17.01 35.76 25,049 0.05 (e) – 1.74 9.1 R-6 shares 2025 16.75 0.28 2.88 3.16 (0.32) (0.20) (0.52) 19.39 19.45 188,760 0.02 (e) – 1.61 33.7 2024 13.13 0.26 3.78 4.04 (0.27) (0.15) (0.42) 16.75 31.25 125,778 0.02 (e) – 1.66 16.8 2023 13.43 0.17 0.67 0.84 (0.19) (0.95) (1.14) 13.13 6.72 80,370 0.02 (e) – 1.24 7.3 2022 17.04 0.35 (3.25) (2.90) (0.40) (0.31) (0.71) 13.43 (17.77) 55,493 0.02 (e) – 2.39 13.4 2021 12.94 0.30 4.26 4.56 (0.33) (0.13) (0.46) 17.04 35.79 50,453 0.02 (e) – 1.92 9.1 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 87

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![null088.jpg](ck0000898745-20260227_g151.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID 2055 FUND Class J shares 2025 $16.57 $0.24 $2.85 $3.09 ($0.29) ($0.20) ($0.49) $19.17 19.19%(b) $162,437 0.26%(c) 0.26%(d) 1.40% 33.7% 2024 13.00 0.20 3.76 3.96 (0.24) (0.15) (0.39) 16.57 30.91 (b) 106,439 0.26 (c) 0.27 (d) 1.30 16.8 2023 13.31 0.12 0.68 0.80 (0.16) (0.95) (1.11) 13.00 6.44 (b) 55,536 0.30 (c) 0.35 (d) 0.91 7.3 2022 16.92 0.29 (3.22) (2.93) (0.37) (0.31) (0.68) 13.31 (18.06) (b) 32,146 0.30 (c) 0.39 (d) 1.96 13.4 2021 12.86 0.21 4.28 4.49 (0.30) (0.13) (0.43) 16.92 35.47 (b) 24,427 0.30 (c) 0.44 (d) 1.30 9.1 Institutional shares 2025 16.71 0.33 2.82 3.15 (0.31) (0.20) (0.51) 19.35 19.46 38,515 0.05 (e) – 1.90 33.7 2024 13.10 0.28 3.75 4.03 (0.27) (0.15) (0.42) 16.71 31.21 37,805 0.05 (e) – 1.81 16.8 2023 13.40 0.17 0.66 0.83 (0.18) (0.95) (1.13) 13.10 6.70 30,824 0.05 (e) – 1.27 7.3 2022 17.01 0.36 (3.26) (2.90) (0.40) (0.31) (0.71) 13.40 (17.82) 24,173 0.05 (e) – 2.45 13.4 2021 12.92 0.28 4.27 4.55 (0.33) (0.13) (0.46) 17.01 35.76 25,049 0.05 (e) – 1.74 9.1 R-6 shares 2025 16.75 0.28 2.88 3.16 (0.32) (0.20) (0.52) 19.39 19.45 188,760 0.02 (e) – 1.61 33.7 2024 13.13 0.26 3.78 4.04 (0.27) (0.15) (0.42) 16.75 31.25 125,778 0.02 (e) – 1.66 16.8 2023 13.43 0.17 0.67 0.84 (0.19) (0.95) (1.14) 13.13 6.72 80,370 0.02 (e) – 1.24 7.3 2022 17.04 0.35 (3.25) (2.90) (0.40) (0.31) (0.71) 13.43 (17.77) 55,493 0.02 (e) – 2.39 13.4 2021 12.94 0.30 4.26 4.56 (0.33) (0.13) (0.46) 17.04 35.79 50,453 0.02 (e) – 1.92 9.1 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 88

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![null089.jpg](ck0000898745-20260227_g152.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID 2060 FUND Class J shares 2025 $17.08 $0.24 $2.93 $3.17 ($0.29) ($0.20) ($0.49) $19.76 19.09%(b) $93,839 0.30%(c) 0.35%(d) 1.35% 33.5% 2024 13.39 0.19 3.89 4.08 (0.25) (0.14) (0.39) 17.08 30.91 (b) 58,029 0.30 (c) 0.37 (d) 1.21 17.4 2023 13.56 0.12 0.70 0.82 (0.16) (0.83) (0.99) 13.39 6.47 (b) 27,750 0.30 (c) 0.52 (d) 0.89 7.6 2022 17.18 0.27 (3.26) (2.99) (0.38) (0.25) (0.63) 13.56 (18.08) (b) 15,523 0.30 (c) 0.58 (d) 1.79 13.8 2021 12.97 0.19 4.44 4.63 (0.30) (0.12) (0.42) 17.18 36.20 (b) 9,593 0.30 (c) 0.82 (d) 1.16 12.9 Institutional shares 2025 17.30 0.33 2.93 3.26 (0.32) (0.20) (0.52) 20.04 19.43 23,393 0.05 (e) – 1.84 33.5 2024 13.55 0.29 3.88 4.17 (0.28) (0.14) (0.42) 17.30 31.22 18,781 0.05 (e) – 1.80 17.4 2023 13.71 0.17 0.69 0.86 (0.19) (0.83) (1.02) 13.55 6.68 14,276 0.05 (e) – 1.23 7.6 2022 17.33 0.35 (3.31) (2.96) (0.41) (0.25) (0.66) 13.71 (17.80) 10,035 0.05 (e) – 2.35 13.8 2021 13.07 0.24 4.45 4.69 (0.31) (0.12) (0.43) 17.33 36.46 9,423 0.05 (e) – 1.48 12.9 R-6 shares 2025 17.36 0.29 2.99 3.28 (0.33) (0.20) (0.53) 20.11 19.45 103,388 0.02 (e) – 1.59 33.5 2024 13.59 0.27 3.92 4.19 (0.28) (0.14) (0.42) 17.36 31.29 66,316 0.02 (e) – 1.64 17.4 2023 13.74 0.17 0.70 0.87 (0.19) (0.83) (1.02) 13.59 6.74 39,797 0.02 (e) – 1.20 7.6 2022 17.37 0.35 (3.32) (2.97) (0.41) (0.25) (0.66) 13.74 (17.81) 24,880 0.02 (e) – 2.30 13.8 2021 13.09 0.28 4.43 4.71 (0.31) (0.12) (0.43) 17.37 36.56 19,773 0.02 (e) – 1.70 12.9 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 89

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![null090.jpg](ck0000898745-20260227_g153.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID 2060 FUND Class J shares 2025 $17.08 $0.24 $2.93 $3.17 ($0.29) ($0.20) ($0.49) $19.76 19.09%(b) $93,839 0.30%(c) 0.35%(d) 1.35% 33.5% 2024 13.39 0.19 3.89 4.08 (0.25) (0.14) (0.39) 17.08 30.91 (b) 58,029 0.30 (c) 0.37 (d) 1.21 17.4 2023 13.56 0.12 0.70 0.82 (0.16) (0.83) (0.99) 13.39 6.47 (b) 27,750 0.30 (c) 0.52 (d) 0.89 7.6 2022 17.18 0.27 (3.26) (2.99) (0.38) (0.25) (0.63) 13.56 (18.08) (b) 15,523 0.30 (c) 0.58 (d) 1.79 13.8 2021 12.97 0.19 4.44 4.63 (0.30) (0.12) (0.42) 17.18 36.20 (b) 9,593 0.30 (c) 0.82 (d) 1.16 12.9 Institutional shares 2025 17.30 0.33 2.93 3.26 (0.32) (0.20) (0.52) 20.04 19.43 23,393 0.05 (e) – 1.84 33.5 2024 13.55 0.29 3.88 4.17 (0.28) (0.14) (0.42) 17.30 31.22 18,781 0.05 (e) – 1.80 17.4 2023 13.71 0.17 0.69 0.86 (0.19) (0.83) (1.02) 13.55 6.68 14,276 0.05 (e) – 1.23 7.6 2022 17.33 0.35 (3.31) (2.96) (0.41) (0.25) (0.66) 13.71 (17.80) 10,035 0.05 (e) – 2.35 13.8 2021 13.07 0.24 4.45 4.69 (0.31) (0.12) (0.43) 17.33 36.46 9,423 0.05 (e) – 1.48 12.9 R-6 shares 2025 17.36 0.29 2.99 3.28 (0.33) (0.20) (0.53) 20.11 19.45 103,388 0.02 (e) – 1.59 33.5 2024 13.59 0.27 3.92 4.19 (0.28) (0.14) (0.42) 17.36 31.29 66,316 0.02 (e) – 1.64 17.4 2023 13.74 0.17 0.70 0.87 (0.19) (0.83) (1.02) 13.59 6.74 39,797 0.02 (e) – 1.20 7.6 2022 17.37 0.35 (3.32) (2.97) (0.41) (0.25) (0.66) 13.74 (17.81) 24,880 0.02 (e) – 2.30 13.8 2021 13.09 0.28 4.43 4.71 (0.31) (0.12) (0.43) 17.37 36.56 19,773 0.02 (e) – 1.70 12.9 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 90

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![null091.jpg](ck0000898745-20260227_g154.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Tax Return of Capital Distribution Total Dividends and Distributions Net Asset Value, End of Period Total Return 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 PRINCIPAL LIFETIME HYBRID 2065 FUND Class J shares 2025 $15.47 $0.19 $2.69 $2.88 ($0.27) ($0.16) $– ($0.43) $17.92 19.12%(b) $38,114 0.30%(c) 0.53%(d) 1.20% 34.6% 2024 12.12 0.17 3.52 3.69 (0.23) (0.11) – (0.34) 15.47 30.91 (b) 20,034 0.30 (c) 0.62 (d) 1.17 18.7 2023 12.20 0.12 0.62 0.74 (0.16) (0.66) – (0.82) 12.12 6.37 (b) 8,800 0.30 (c) 0.87 (d) 0.96 16.3 2022 15.22 0.30 (2.98) (2.68) (0.34) – – (0.34) 12.20 (18.04) (b) 5,632 0.30 (c) 0.89 (d) 2.26 28.4 2021 11.36 0.17 3.95 4.12 (0.25) – (0.01) (0.26) 15.22 36.67 (b) 5,381 0.30 (c) 1.24 (d) 1.19 31.3 Institutional shares 2025 15.74 0.28 2.68 2.96 (0.29) (0.16) – (0.45) 18.25 19.39 4,973 0.05 (e) – 1.71 34.6 2024 12.31 0.23 3.56 3.79 (0.25) (0.11) – (0.36) 15.74 31.25 3,547 0.05 (e) – 1.52 18.7 2023 12.36 0.14 0.64 0.78 (0.17) (0.66) – (0.83) 12.31 6.67 1,946 0.05 (e) – 1.11 16.3 2022 15.38 0.29 (2.96) (2.67) (0.35) – – (0.35) 12.36 (17.81) 1,463 0.05 (e) – 2.12 28.4 2021 11.45 0.19 4.00 4.19 (0.25) – (0.01) (0.26) 15.38 37.00 1,312 0.05 (e) – 1.29 31.3 R-6 shares 2025 15.76 0.26 2.72 2.98 (0.29) (0.16) – (0.45) 18.29 19.49 38,740 0.02 (e) – 1.58 34.6 2024 12.33 0.23 3.56 3.79 (0.25) (0.11) – (0.36) 15.76 31.20 23,393 0.02 (e) – 1.56 18.7 2023 12.37 0.13 0.66 0.79 (0.17) (0.66) – (0.83) 12.33 6.75 12,636 0.02 (e) – 1.04 16.3 2022 15.39 0.28 (2.95) (2.67) (0.35) – – (0.35) 12.37 (17.80) 5,956 0.02 (e) – 2.07 28.4 2021 11.45 0.27 3.93 4.20 (0.25) – (0.01) (0.26) 15.39 37.09 3,340 0.02 (e) – 1.91 31.3 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 91

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![null092.jpg](ck0000898745-20260227_g155.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Tax Return of Capital Distribution Total Dividends and Distributions Net Asset Value, End of Period Total Return 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 PRINCIPAL LIFETIME HYBRID 2065 FUND Class J shares 2025 $15.47 $0.19 $2.69 $2.88 ($0.27) ($0.16) $– ($0.43) $17.92 19.12%(b) $38,114 0.30%(c) 0.53%(d) 1.20% 34.6% 2024 12.12 0.17 3.52 3.69 (0.23) (0.11) – (0.34) 15.47 30.91 (b) 20,034 0.30 (c) 0.62 (d) 1.17 18.7 2023 12.20 0.12 0.62 0.74 (0.16) (0.66) – (0.82) 12.12 6.37 (b) 8,800 0.30 (c) 0.87 (d) 0.96 16.3 2022 15.22 0.30 (2.98) (2.68) (0.34) – – (0.34) 12.20 (18.04) (b) 5,632 0.30 (c) 0.89 (d) 2.26 28.4 2021 11.36 0.17 3.95 4.12 (0.25) – (0.01) (0.26) 15.22 36.67 (b) 5,381 0.30 (c) 1.24 (d) 1.19 31.3 Institutional shares 2025 15.74 0.28 2.68 2.96 (0.29) (0.16) – (0.45) 18.25 19.39 4,973 0.05 (e) – 1.71 34.6 2024 12.31 0.23 3.56 3.79 (0.25) (0.11) – (0.36) 15.74 31.25 3,547 0.05 (e) – 1.52 18.7 2023 12.36 0.14 0.64 0.78 (0.17) (0.66) – (0.83) 12.31 6.67 1,946 0.05 (e) – 1.11 16.3 2022 15.38 0.29 (2.96) (2.67) (0.35) – – (0.35) 12.36 (17.81) 1,463 0.05 (e) – 2.12 28.4 2021 11.45 0.19 4.00 4.19 (0.25) – (0.01) (0.26) 15.38 37.00 1,312 0.05 (e) – 1.29 31.3 R-6 shares 2025 15.76 0.26 2.72 2.98 (0.29) (0.16) – (0.45) 18.29 19.49 38,740 0.02 (e) – 1.58 34.6 2024 12.33 0.23 3.56 3.79 (0.25) (0.11) – (0.36) 15.76 31.20 23,393 0.02 (e) – 1.56 18.7 2023 12.37 0.13 0.66 0.79 (0.17) (0.66) – (0.83) 12.33 6.75 12,636 0.02 (e) – 1.04 16.3 2022 15.39 0.28 (2.95) (2.67) (0.35) – – (0.35) 12.37 (17.80) 5,956 0.02 (e) – 2.07 28.4 2021 11.45 0.27 3.93 4.20 (0.25) – (0.01) (0.26) 15.39 37.09 3,340 0.02 (e) – 1.91 31.3 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 92

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![null093.jpg](ck0000898745-20260227_g156.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID 2070 FUND Class J shares 2025 $13.10 $0.13 $2.31 $2.44 ($0.24) ($0.10) ($0.34) $15.20 19.07%(b) $3,513 0.30%(c) 1.49%(d) 0.94% 49.5% 2024 10.15 0.12 3.04 3.16 (0.20) (0.01) (0.21) 13.10 31.44 (b) 1,164 0.30 (c) 3.97 (d) 0.98 48.0 2023(e) 10.00 (0.01) 0.16 0.15 – – – 10.15 1.50 (b),(f) 355 0.30 (c),(g) 40.52 (d),(g) (0.14) (g) 130.0 (g) Institutional shares 2025 12.99 0.08 2.38 2.46 (0.24) (0.10) (0.34) 15.11 19.39 2,396 0.05 (h) – 0.61 49.5 2024 10.06 0.10 3.04 3.14 (0.20) (0.01) (0.21) 12.99 31.53 263 0.05 (h) – 0.76 48.0 2023(e) 10.00 0.01 0.05 0.06 – – – 10.06 0.60 (f) 36 0.05 (g),(h) – 0.10 (g) 130.0 (g) R-6 shares 2025 13.00 0.20 2.26 2.46 (0.24) (0.10) (0.34) 15.12 19.37 6,408 0.02 (h) – 1.47 49.5 2024 10.07 0.09 3.05 3.14 (0.20) (0.01) (0.21) 13.00 31.50 2,667 0.02 (h) – 0.74 48.0 2023(e) 10.00 0.01 0.06 0.07 – – – 10.07 0.70 (f) 282 0.02 (g),(h) – 0.16 (g) 130.0 (g) (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Period from March 1, 2023, date operations commenced, through October 31, 2023. (f) Total return amounts have not been annualized. (g) Computed on an annualized basis. (h) Subject to Manager's contractual expense limit. 93

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![null094.jpg](ck0000898745-20260227_g157.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID 2070 FUND Class J shares 2025 $13.10 $0.13 $2.31 $2.44 ($0.24) ($0.10) ($0.34) $15.20 19.07%(b) $3,513 0.30%(c) 1.49%(d) 0.94% 49.5% 2024 10.15 0.12 3.04 3.16 (0.20) (0.01) (0.21) 13.10 31.44 (b) 1,164 0.30 (c) 3.97 (d) 0.98 48.0 2023(e) 10.00 (0.01) 0.16 0.15 – – – 10.15 1.50 (b),(f) 355 0.30 (c),(g) 40.52 (d),(g) (0.14) (g) 130.0 (g) Institutional shares 2025 12.99 0.08 2.38 2.46 (0.24) (0.10) (0.34) 15.11 19.39 2,396 0.05 (h) – 0.61 49.5 2024 10.06 0.10 3.04 3.14 (0.20) (0.01) (0.21) 12.99 31.53 263 0.05 (h) – 0.76 48.0 2023(e) 10.00 0.01 0.05 0.06 – – – 10.06 0.60 (f) 36 0.05 (g),(h) – 0.10 (g) 130.0 (g) R-6 shares 2025 13.00 0.20 2.26 2.46 (0.24) (0.10) (0.34) 15.12 19.37 6,408 0.02 (h) – 1.47 49.5 2024 10.07 0.09 3.05 3.14 (0.20) (0.01) (0.21) 13.00 31.50 2,667 0.02 (h) – 0.74 48.0 2023(e) 10.00 0.01 0.06 0.07 – – – 10.07 0.70 (f) 282 0.02 (g),(h) – 0.16 (g) 130.0 (g) (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Period from March 1, 2023, date operations commenced, through October 31, 2023. (f) Total return amounts have not been annualized. (g) Computed on an annualized basis. (h) Subject to Manager's contractual expense limit. 94

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![null095.jpg](ck0000898745-20260227_g158.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID INCOME FUND Class J shares 2025 $10.54 $0.31 $0.74 $1.05 ($0.30) ($0.01) ($0.31) $11.28 10.33%(b) $133,941 0.19%(c) 0.19%(d) 2.89% 27.3% 2024 9.33 0.29 1.27 1.56 (0.31) (0.04) (0.35) 10.54 16.97 (b) 111,227 0.19 (c) 0.21 (d) 2.84 24.1 2023 9.49 0.20 0.10 0.30 (0.19) (0.27) (0.46) 9.33 3.27 (b) 69,130 0.17 (c) 0.19 (d) 2.10 20.7 2022 11.69 0.23 (1.83) (1.60) (0.25) (0.35) (0.60) 9.49 (14.39) (b) 42,296 0.26 (c) 0.28 (d) 2.23 31.5 2021 11.18 0.39 0.66 1.05 (0.50) (0.04) (0.54) 11.69 9.56 (b) 33,456 0.28 (c) 0.30 (d) 3.38 20.6 Institutional shares 2025 10.60 0.37 0.70 1.07 (0.31) (0.01) (0.32) 11.35 10.50 7,746 0.05 (e) – 3.50 27.3 2024 9.38 0.35 1.22 1.57 (0.31) (0.04) (0.35) 10.60 17.08 8,420 0.05 (e) – 3.44 24.1 2023 9.54 0.25 0.07 0.32 (0.21) (0.27) (0.48) 9.38 3.42 10,053 0.05 (e) – 2.54 20.7 2022 11.74 0.29 (1.86) (1.57) (0.28) (0.35) (0.63) 9.54 (14.17) 11,474 0.05 (e) – 2.76 31.5 2021 11.23 0.43 0.63 1.06 (0.51) (0.04) (0.55) 11.74 9.69 17,255 0.05 (e) – 3.74 20.6 R-6 shares 2025 10.62 0.32 0.77 1.09 (0.32) (0.01) (0.33) 11.38 10.61 46,188 0.02 (e) – 2.96 27.3 2024 9.40 0.33 1.25 1.58 (0.32) (0.04) (0.36) 10.62 17.07 40,075 0.02 (e) – 3.18 24.1 2023 9.56 0.26 0.06 0.32 (0.21) (0.27) (0.48) 9.40 3.45 25,367 0.02 (e) – 2.65 20.7 2022 11.76 0.27 (1.84) (1.57) (0.28) (0.35) (0.63) 9.56 (14.13) 33,623 0.02 (e) – 2.61 31.5 2021 11.24 0.52 0.56 1.08 (0.52) (0.04) (0.56) 11.76 9.78 34,760 0.02 (e) – 4.48 20.6 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 95

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![null096.jpg](ck0000898745-20260227_g159.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME HYBRID INCOME FUND Class J shares 2025 $10.54 $0.31 $0.74 $1.05 ($0.30) ($0.01) ($0.31) $11.28 10.33%(b) $133,941 0.19%(c) 0.19%(d) 2.89% 27.3% 2024 9.33 0.29 1.27 1.56 (0.31) (0.04) (0.35) 10.54 16.97 (b) 111,227 0.19 (c) 0.21 (d) 2.84 24.1 2023 9.49 0.20 0.10 0.30 (0.19) (0.27) (0.46) 9.33 3.27 (b) 69,130 0.17 (c) 0.19 (d) 2.10 20.7 2022 11.69 0.23 (1.83) (1.60) (0.25) (0.35) (0.60) 9.49 (14.39) (b) 42,296 0.26 (c) 0.28 (d) 2.23 31.5 2021 11.18 0.39 0.66 1.05 (0.50) (0.04) (0.54) 11.69 9.56 (b) 33,456 0.28 (c) 0.30 (d) 3.38 20.6 Institutional shares 2025 10.60 0.37 0.70 1.07 (0.31) (0.01) (0.32) 11.35 10.50 7,746 0.05 (e) – 3.50 27.3 2024 9.38 0.35 1.22 1.57 (0.31) (0.04) (0.35) 10.60 17.08 8,420 0.05 (e) – 3.44 24.1 2023 9.54 0.25 0.07 0.32 (0.21) (0.27) (0.48) 9.38 3.42 10,053 0.05 (e) – 2.54 20.7 2022 11.74 0.29 (1.86) (1.57) (0.28) (0.35) (0.63) 9.54 (14.17) 11,474 0.05 (e) – 2.76 31.5 2021 11.23 0.43 0.63 1.06 (0.51) (0.04) (0.55) 11.74 9.69 17,255 0.05 (e) – 3.74 20.6 R-6 shares 2025 10.62 0.32 0.77 1.09 (0.32) (0.01) (0.33) 11.38 10.61 46,188 0.02 (e) – 2.96 27.3 2024 9.40 0.33 1.25 1.58 (0.32) (0.04) (0.36) 10.62 17.07 40,075 0.02 (e) – 3.18 24.1 2023 9.56 0.26 0.06 0.32 (0.21) (0.27) (0.48) 9.40 3.45 25,367 0.02 (e) – 2.65 20.7 2022 11.76 0.27 (1.84) (1.57) (0.28) (0.35) (0.63) 9.56 (14.13) 33,623 0.02 (e) – 2.61 31.5 2021 11.24 0.52 0.56 1.08 (0.52) (0.04) (0.56) 11.76 9.78 34,760 0.02 (e) – 4.48 20.6 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 96

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![null097.jpg](ck0000898745-20260227_g160.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME STRATEGIC INCOME FUND Class A shares 2025 $11.73 $0.32 $0.71 $1.03 ($0.32) ($0.16) ($0.48) $12.28 9.19%(b) $37,164 0.38%(c) –% 2.77% 24.4% 2024 10.31 0.32 1.35 1.67 (0.25) – (0.25) 11.73 16.36 (b) 37,093 0.37 (c) – 2.80 26.7 2023 10.46 0.26 0.08 0.34 (0.24) (0.25) (0.49) 10.31 3.28 (b) 35,755 0.38 (c) – 2.43 11.8 2022 13.24 0.31 (2.18) (1.87) (0.31) (0.60) (0.91) 10.46 (15.14) (b) 16,425 0.38 (c) – 2.72 33.6 2021 12.51 0.22 0.95 1.17 (0.22) (0.22) (0.44) 13.24 9.45 (b) 19,902 0.38 (c) – 1.66 35.0 Class J shares 2025 11.53 0.34 0.70 1.04 (0.35) (0.16) (0.51) 12.06 9.41 (b) 239,340 0.18 (d) 0.18 (e) 2.96 24.4 2024 10.14 0.33 1.33 1.66 (0.27) – (0.27) 11.53 16.54 (b) 237,493 0.16 (d) 0.18 (e) 2.98 26.7 2023 10.29 0.26 0.10 0.36 (0.26) (0.25) (0.51) 10.14 3.53 (b) 213,892 0.19 (d) 0.21 (e) 2.51 11.8 2022 13.04 0.32 (2.15) (1.83) (0.32) (0.60) (0.92) 10.29 (15.02) (b) 58,048 0.23 (d) 0.25 (e) 2.87 33.6 2021 12.33 0.23 0.94 1.17 (0.24) (0.22) (0.46) 13.04 9.61 (b) 71,811 0.22 (d) 0.24 (e) 1.84 35.0 Institutional shares 2025 11.62 0.37 0.70 1.07 (0.36) (0.16) (0.52) 12.17 9.69 403,206 0.00 (c) – 3.18 24.4 2024 10.21 0.35 1.34 1.69 (0.28) – (0.28) 11.62 16.76 468,789 0.00 (c) – 3.16 26.7 2023 10.37 0.30 0.08 0.38 (0.29) (0.25) (0.54) 10.21 3.64 464,413 0.02 – 2.82 11.8 2022 13.13 0.36 (2.17) (1.81) (0.35) (0.60) (0.95) 10.37 (14.82) 237,065 0.02 – 3.12 33.6 2021 12.41 0.26 0.94 1.20 (0.26) (0.22) (0.48) 13.13 9.83 337,718 0.02 – 2.04 35.0 R-3 shares 2025 11.48 0.29 0.70 0.99 (0.31) (0.16) (0.47) 12.00 8.98 20,320 0.58 – 2.57 24.4 2024 10.10 0.29 1.32 1.61 (0.23) – (0.23) 11.48 16.12 17,650 0.58 – 2.60 26.7 2023 10.25 0.23 0.09 0.32 (0.22) (0.25) (0.47) 10.10 3.11 19,003 0.58 – 2.20 11.8 2022 12.99 0.29 (2.16) (1.87) (0.27) (0.60) (0.87) 10.25 (15.36) 7,731 0.58 – 2.56 33.6 2021 12.27 0.19 0.94 1.13 (0.19) (0.22) (0.41) 12.99 9.31 10,552 0.58 – 1.51 35.0 R-5 shares 2025 11.61 0.34 0.70 1.04 (0.34) (0.16) (0.50) 12.15 9.38 24,751 0.27 – 2.92 24.4 2024 10.20 0.33 1.34 1.67 (0.26) – (0.26) 11.61 16.54 18,000 0.27 – 2.94 26.7 2023 10.36 0.27 0.08 0.35 (0.26) (0.25) (0.51) 10.20 3.35 20,170 0.27 – 2.58 11.8 2022 13.12 0.33 (2.18) (1.85) (0.31) (0.60) (0.91) 10.36 (15.07) 10,147 0.27 – 2.90 33.6 2021 12.39 0.24 0.94 1.18 (0.23) (0.22) (0.45) 13.12 9.64 13,279 0.27 – 1.84 35.0 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit. (d) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (e) Excludes expense reimbursement from Manager and/or Distributor. 97

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![null098.jpg](ck0000898745-20260227_g161.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 PRINCIPAL LIFETIME STRATEGIC INCOME FUND Class A shares 2025 $11.73 $0.32 $0.71 $1.03 ($0.32) ($0.16) ($0.48) $12.28 9.19%(b) $37,164 0.38%(c) –% 2.77% 24.4% 2024 10.31 0.32 1.35 1.67 (0.25) – (0.25) 11.73 16.36 (b) 37,093 0.37 (c) – 2.80 26.7 2023 10.46 0.26 0.08 0.34 (0.24) (0.25) (0.49) 10.31 3.28 (b) 35,755 0.38 (c) – 2.43 11.8 2022 13.24 0.31 (2.18) (1.87) (0.31) (0.60) (0.91) 10.46 (15.14) (b) 16,425 0.38 (c) – 2.72 33.6 2021 12.51 0.22 0.95 1.17 (0.22) (0.22) (0.44) 13.24 9.45 (b) 19,902 0.38 (c) – 1.66 35.0 Class J shares 2025 11.53 0.34 0.70 1.04 (0.35) (0.16) (0.51) 12.06 9.41 (b) 239,340 0.18 (d) 0.18 (e) 2.96 24.4 2024 10.14 0.33 1.33 1.66 (0.27) – (0.27) 11.53 16.54 (b) 237,493 0.16 (d) 0.18 (e) 2.98 26.7 2023 10.29 0.26 0.10 0.36 (0.26) (0.25) (0.51) 10.14 3.53 (b) 213,892 0.19 (d) 0.21 (e) 2.51 11.8 2022 13.04 0.32 (2.15) (1.83) (0.32) (0.60) (0.92) 10.29 (15.02) (b) 58,048 0.23 (d) 0.25 (e) 2.87 33.6 2021 12.33 0.23 0.94 1.17 (0.24) (0.22) (0.46) 13.04 9.61 (b) 71,811 0.22 (d) 0.24 (e) 1.84 35.0 Institutional shares 2025 11.62 0.37 0.70 1.07 (0.36) (0.16) (0.52) 12.17 9.69 403,206 0.00 (c) – 3.18 24.4 2024 10.21 0.35 1.34 1.69 (0.28) – (0.28) 11.62 16.76 468,789 0.00 (c) – 3.16 26.7 2023 10.37 0.30 0.08 0.38 (0.29) (0.25) (0.54) 10.21 3.64 464,413 0.02 – 2.82 11.8 2022 13.13 0.36 (2.17) (1.81) (0.35) (0.60) (0.95) 10.37 (14.82) 237,065 0.02 – 3.12 33.6 2021 12.41 0.26 0.94 1.20 (0.26) (0.22) (0.48) 13.13 9.83 337,718 0.02 – 2.04 35.0 R-3 shares 2025 11.48 0.29 0.70 0.99 (0.31) (0.16) (0.47) 12.00 8.98 20,320 0.58 – 2.57 24.4 2024 10.10 0.29 1.32 1.61 (0.23) – (0.23) 11.48 16.12 17,650 0.58 – 2.60 26.7 2023 10.25 0.23 0.09 0.32 (0.22) (0.25) (0.47) 10.10 3.11 19,003 0.58 – 2.20 11.8 2022 12.99 0.29 (2.16) (1.87) (0.27) (0.60) (0.87) 10.25 (15.36) 7,731 0.58 – 2.56 33.6 2021 12.27 0.19 0.94 1.13 (0.19) (0.22) (0.41) 12.99 9.31 10,552 0.58 – 1.51 35.0 R-5 shares 2025 11.61 0.34 0.70 1.04 (0.34) (0.16) (0.50) 12.15 9.38 24,751 0.27 – 2.92 24.4 2024 10.20 0.33 1.34 1.67 (0.26) – (0.26) 11.61 16.54 18,000 0.27 – 2.94 26.7 2023 10.36 0.27 0.08 0.35 (0.26) (0.25) (0.51) 10.20 3.35 20,170 0.27 – 2.58 11.8 2022 13.12 0.33 (2.18) (1.85) (0.31) (0.60) (0.91) 10.36 (15.07) 10,147 0.27 – 2.90 33.6 2021 12.39 0.24 0.94 1.18 (0.23) (0.22) (0.45) 13.12 9.64 13,279 0.27 – 1.84 35.0 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit. (d) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (e) Excludes expense reimbursement from Manager and/or Distributor. 98

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![null099.jpg](ck0000898745-20260227_g162.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Tax Return of Capital Distribution Total Dividends and Distributions Net Asset Value, End of Period Total Return 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 REAL ESTATE SECURITIES FUND Class A shares 2025 $29.94 $0.53 ($1.32) ($0.79) ($0.64) ($0.45) $– ($1.09) $28.06 (2.61)%(b) $177,425 1.19% –% 1.85% 18.5% 2024 23.39 0.54 6.63 7.17 (0.54) (0.08) – (0.62) 29.94 30.84 (b) 203,180 1.19 – 1.98 31.2 2023 25.62 0.53 (1.88) (1.35) (0.54) (0.26) (0.08) (0.88) 23.39 (5.50) (b) 182,522 1.22 – 2.06 16.1 2022 33.58 0.32 (6.82) (6.50) (0.35) (1.11) – (1.46) 25.62 (20.14) (b) 283,213 1.20 – 1.05 18.7 2021 23.53 0.26 10.41 10.67 (0.30) (0.32) – (0.62) 33.58 45.87 (b) 348,715 1.21 – 0.88 31.0 Class C shares 2025 29.32 0.27 (1.29) (1.02) (0.38) (0.45) – (0.83) 27.47 (3.45) (b) 11,469 2.07 – 0.96 18.5 2024 22.91 0.30 6.50 6.80 (0.31) (0.08) – (0.39) 29.32 29.76 (b) 16,854 2.05 – 1.14 31.2 2023 25.11 0.30 (1.85) (1.55) (0.33) (0.26) (0.06) (0.65) 22.91 (6.34) (b) 18,401 2.10 – 1.19 16.1 2022 32.93 0.08 (6.68) (6.60) (0.11) (1.11) – (1.22) 25.11 (20.76) (b) 27,677 1.99 – 0.25 18.7 2021 23.08 0.05 10.20 10.25 (0.08) (0.32) – (0.40) 32.93 44.73 (b),(c) 40,295 1.99 – 0.16 31.0 Class J shares 2025 28.84 0.54 (1.27) (0.73) (0.67) (0.45) – (1.12) 26.99 (2.49) (b) 120,178 1.09 (d) 1.09 (e) 1.95 18.5 2024 22.55 0.56 6.39 6.95 (0.58) (0.08) – (0.66) 28.84 31.00 (b) 138,374 1.06 (d) 1.08 (e) 2.10 31.2 2023 24.75 0.54 (1.83) (1.29) (0.56) (0.26) (0.09) (0.91) 22.55 (5.44) (b) 119,508 1.13 (d) 1.15 (e) 2.15 16.1 2022 32.49 0.35 (6.59) (6.24) (0.39) (1.11) – (1.50) 24.75 (20.04) (b),(c) 139,555 1.07 (d) 1.09 (e) 1.18 18.7 2021 22.79 0.28 10.08 10.36 (0.34) (0.32) – (0.66) 32.49 46.09 (b),(c) 185,393 1.08 (d) 1.10 (e) 1.00 31.0 Institutional shares 2025 29.96 0.62 (1.32) (0.70) (0.73) (0.45) – (1.18) 28.08 (2.29) 3,571,229 0.86 (f) – 2.18 18.5 2024 23.40 0.63 6.64 7.27 (0.63) (0.08) – (0.71) 29.96 31.30 3,810,831 0.86 (f) – 2.30 31.2 2023 25.65 0.63 (1.90) (1.27) (0.62) (0.26) (0.10) (0.98) 23.40 (5.19) 2,867,558 0.86 (f) – 2.42 16.1 2022 33.61 0.42 (6.82) (6.40) (0.45) (1.11) – (1.56) 25.65 (19.85) 3,291,840 0.86 (f) – 1.39 18.7 2021 23.55 0.32 10.46 10.78 (0.40) (0.32) – (0.72) 33.61 46.34 3,930,727 0.89 (f) – 1.06 31.0 R-3 shares 2025 29.02 0.46 (1.27) (0.81) (0.59) (0.45) – (1.04) 27.17 (2.76) 27,109 1.37 – 1.67 18.5 2024 22.69 0.48 6.43 6.91 (0.50) (0.08) – (0.58) 29.02 30.61 29,609 1.37 – 1.80 31.2 2023 24.89 0.48 (1.83) (1.35) (0.51) (0.26) (0.08) (0.85) 22.69 (5.65) 26,311 1.37 – 1.92 16.1 2022 32.66 0.26 (6.62) (6.36) (0.30) (1.11) – (1.41) 24.89 (20.26) 33,778 1.37 – 0.88 18.7 2021 22.91 0.17 10.17 10.34 (0.27) (0.32) – (0.59) 32.66 45.63 46,314 1.37 – 0.59 31.0 R-5 shares 2025 28.69 0.55 (1.27) (0.72) (0.68) (0.45) – (1.13) 26.84 (2.47) 71,628 1.06 – 1.99 18.5 2024 22.44 0.56 6.35 6.91 (0.58) (0.08) – (0.66) 28.69 31.00 76,319 1.06 – 2.14 31.2 2023 24.63 0.55 (1.81) (1.26) (0.58) (0.26) (0.09) (0.93) 22.44 (5.35) 75,824 1.06 – 2.22 16.1 2022 32.34 0.35 (6.56) (6.21) (0.39) (1.11) – (1.50) 24.63 (20.01) 87,270 1.06 – 1.19 18.7 2021 22.68 0.29 10.04 10.33 (0.35) (0.32) – (0.67) 32.34 46.10 114,006 1.06 – 1.04 31.0 R-6 shares 2025 29.94 0.64 (1.31) (0.67) (0.75) (0.45) – (1.20) 28.07 (2.21) 2,206,181 0.81 – 2.23 18.5 2024 23.39

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0.65 6.63 7.28 (0.65) (0.08) – (0.73) 29.94 31.33 2,327,404 0.81 – 2.36 31.2 2023 25.64 0.64 (1.89) (1.25) (0.64) (0.26) (0.10) (1.00) 23.39 (5.14) 1,849,047 0.81 – 2.47 16.1 2022 33.60 0.45 (6.83) (6.38) (0.47) (1.11) – (1.58) 25.64 (19.79) 1,854,169 0.80 – 1.46 18.7 2021 23.55 0.40 10.39 10.79 (0.42) (0.32) – (0.74) 33.60 46.43 2,045,827 0.80 (f) – 1.38 31.0 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (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. (d) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (e) Excludes expense reimbursement from Manager and/or Distributor. (f) Subject to Manager's contractual expense limit. 99

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![null100.jpg](ck0000898745-20260227_g163.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Tax Return of Capital Distribution Total Dividends and Distributions Net Asset Value, End of Period Total Return 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 REAL ESTATE SECURITIES FUND Class A shares 2025 $29.94 $0.53 ($1.32) ($0.79) ($0.64) ($0.45) $– ($1.09) $28.06 (2.61)%(b) $177,425 1.19% –% 1.85% 18.5% 2024 23.39 0.54 6.63 7.17 (0.54) (0.08) – (0.62) 29.94 30.84 (b) 203,180 1.19 – 1.98 31.2 2023 25.62 0.53 (1.88) (1.35) (0.54) (0.26) (0.08) (0.88) 23.39 (5.50) (b) 182,522 1.22 – 2.06 16.1 2022 33.58 0.32 (6.82) (6.50) (0.35) (1.11) – (1.46) 25.62 (20.14) (b) 283,213 1.20 – 1.05 18.7 2021 23.53 0.26 10.41 10.67 (0.30) (0.32) – (0.62) 33.58 45.87 (b) 348,715 1.21 – 0.88 31.0 Class C shares 2025 29.32 0.27 (1.29) (1.02) (0.38) (0.45) – (0.83) 27.47 (3.45) (b) 11,469 2.07 – 0.96 18.5 2024 22.91 0.30 6.50 6.80 (0.31) (0.08) – (0.39) 29.32 29.76 (b) 16,854 2.05 – 1.14 31.2 2023 25.11 0.30 (1.85) (1.55) (0.33) (0.26) (0.06) (0.65) 22.91 (6.34) (b) 18,401 2.10 – 1.19 16.1 2022 32.93 0.08 (6.68) (6.60) (0.11) (1.11) – (1.22) 25.11 (20.76) (b) 27,677 1.99 – 0.25 18.7 2021 23.08 0.05 10.20 10.25 (0.08) (0.32) – (0.40) 32.93 44.73 (b),(c) 40,295 1.99 – 0.16 31.0 Class J shares 2025 28.84 0.54 (1.27) (0.73) (0.67) (0.45) – (1.12) 26.99 (2.49) (b) 120,178 1.09 (d) 1.09 (e) 1.95 18.5 2024 22.55 0.56 6.39 6.95 (0.58) (0.08) – (0.66) 28.84 31.00 (b) 138,374 1.06 (d) 1.08 (e) 2.10 31.2 2023 24.75 0.54 (1.83) (1.29) (0.56) (0.26) (0.09) (0.91) 22.55 (5.44) (b) 119,508 1.13 (d) 1.15 (e) 2.15 16.1 2022 32.49 0.35 (6.59) (6.24) (0.39) (1.11) – (1.50) 24.75 (20.04) (b),(c) 139,555 1.07 (d) 1.09 (e) 1.18 18.7 2021 22.79 0.28 10.08 10.36 (0.34) (0.32) – (0.66) 32.49 46.09 (b),(c) 185,393 1.08 (d) 1.10 (e) 1.00 31.0 Institutional shares 2025 29.96 0.62 (1.32) (0.70) (0.73) (0.45) – (1.18) 28.08 (2.29) 3,571,229 0.86 (f) – 2.18 18.5 2024 23.40 0.63 6.64 7.27 (0.63) (0.08) – (0.71) 29.96 31.30 3,810,831 0.86 (f) – 2.30 31.2 2023 25.65 0.63 (1.90) (1.27) (0.62) (0.26) (0.10) (0.98) 23.40 (5.19) 2,867,558 0.86 (f) – 2.42 16.1 2022 33.61 0.42 (6.82) (6.40) (0.45) (1.11) – (1.56) 25.65 (19.85) 3,291,840 0.86 (f) – 1.39 18.7 2021 23.55 0.32 10.46 10.78 (0.40) (0.32) – (0.72) 33.61 46.34 3,930,727 0.89 (f) – 1.06 31.0 R-3 shares 2025 29.02 0.46 (1.27) (0.81) (0.59) (0.45) – (1.04) 27.17 (2.76) 27,109 1.37 – 1.67 18.5 2024 22.69 0.48 6.43 6.91 (0.50) (0.08) – (0.58) 29.02 30.61 29,609 1.37 – 1.80 31.2 2023 24.89 0.48 (1.83) (1.35) (0.51) (0.26) (0.08) (0.85) 22.69 (5.65) 26,311 1.37 – 1.92 16.1 2022 32.66 0.26 (6.62) (6.36) (0.30) (1.11) – (1.41) 24.89 (20.26) 33,778 1.37 – 0.88 18.7 2021 22.91 0.17 10.17 10.34 (0.27) (0.32) – (0.59) 32.66 45.63 46,314 1.37 – 0.59 31.0 R-5 shares 2025 28.69 0.55 (1.27) (0.72) (0.68) (0.45) – (1.13) 26.84 (2.47) 71,628 1.06 – 1.99 18.5 2024 22.44 0.56 6.35 6.91 (0.58) (0.08) – (0.66) 28.69 31.00 76,319 1.06 – 2.14 31.2 2023 24.63 0.55 (1.81) (1.26) (0.58) (0.26) (0.09) (0.93) 22.44 (5.35) 75,824 1.06 – 2.22 16.1 2022 32.34 0.35 (6.56) (6.21) (0.39) (1.11) – (1.50) 24.63 (20.01) 87,270 1.06 – 1.19 18.7 2021 22.68 0.29 10.04 10.33 (0.35) (0.32) – (0.67) 32.34 46.10 114,006 1.06 – 1.04 31.0 R-6 shares 2025 29.94 0.64 (1.31) (0.67) (0.75) (0.45) – (1.20) 28.07 (2.21) 2,206,181 0.81 – 2.23 18.5 2024 23.39 0.65 6.63 7.28 (0.65) (0.08) – (0.73) 29.94 31.33 2,327,404 0.81 – 2.36 31.2 2023 25.64 0.64 (1.89) (1.25) (0.64) (0.26) (0.10) (1.00) 23.39 (5.14) 1,849,047 0.81 – 2.47 16.1 2022 33.60 0.45 (6.83) (6.38) (0.47) (1.11) – (1.58) 25.64 (19.79) 1,854,169 0.80 – 1.46 18.7 2021 23.55 0.40 10.39 10.79 (0.42) (0.32) – (0.74) 33.60 46.43 2,045,827 0.80 (f) – 1.38 31.0 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (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. (d) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (e) Excludes expense reimbursement from Manager and/or Distributor. (f) Subject to Manager's contractual expense limit. 100

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![null101.jpg](ck0000898745-20260227_g164.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 SAM BALANCED PORTFOLIO Class A shares 2025 $16.96 $0.31 $1.81 $2.12 ($0.30) ($0.80) ($1.10) $17.98 13.30%(b) $2,202,184 0.59% –% 1.85% 44.7% 2024 13.81 0.29 3.13 3.42 (0.27) – (0.27) 16.96 24.93 (b) 2,156,725 0.59 – 1.79 17.3 2023 14.16 0.24 0.51 0.75 (0.23) (0.87) (1.10) 13.81 5.44 (b) 1,897,327 0.62 – 1.66 26.1 2022 18.95 0.32 (3.38) (3.06) (0.30) (1.43) (1.73) 14.16 (17.52) (b) 1,965,970 0.60 – 1.98 50.4 2021 15.64 0.20 3.58 3.78 (0.19) (0.28) (0.47) 18.95 24.55 (b) 2,523,065 0.59 – 1.11 31.3 Class C shares 2025 16.51 0.18 1.76 1.94 (0.18) (0.80) (0.98) 17.47 12.44 (b) 102,794 1.36 – 1.13 44.7 2024 13.44 0.17 3.05 3.22 (0.15) – (0.15) 16.51 24.04 (b) 115,518 1.37 – 1.07 17.3 2023 13.81 0.13 0.48 0.61 (0.11) (0.87) (0.98) 13.44 4.59 (b) 130,921 1.40 – 0.93 26.1 2022 18.53 0.20 (3.30) (3.10) (0.19) (1.43) (1.62) 13.81 (18.16) (b) 174,776 1.38 – 1.26 50.4 2021 15.36 0.06 3.51 3.57 (0.12) (0.28) (0.40) 18.53 23.57 (b) 281,665 1.37 – 0.37 31.3 Class J shares 2025 16.14 0.32 1.72 2.04 (0.33) (0.80) (1.13) 17.05 13.49 (b) 1,712,349 0.44 (c) 0.45 (d) 1.99 44.7 2024 13.15 0.30 2.99 3.29 (0.30) – (0.30) 16.14 25.20 (b) 1,594,700 0.42 (c) 0.44 (d) 1.93 17.3 2023 13.54 0.25 0.48 0.73 (0.25) (0.87) (1.12) 13.15 5.59 (b) 1,263,792 0.44 (c) 0.46 (d) 1.82 26.1 2022 18.20 0.32 (3.22) (2.90) (0.33) (1.43) (1.76) 13.54 (17.39) (b) 1,158,071 0.45 (c) 0.47 (d) 2.11 50.4 2021 15.05 0.22 3.43 3.65 (0.22) (0.28) (0.50) 18.20 24.65 (b) 1,336,353 0.44 (c) 0.47 (d) 1.25 31.3 Institutional shares 2025 16.57 0.35 1.77 2.12 (0.35) (0.80) (1.15) 17.54 13.66 717,428 0.29 – 2.15 44.7 2024 13.49 0.33 3.07 3.40 (0.32) – (0.32) 16.57 25.38 688,003 0.29 – 2.08 17.3 2023 13.86 0.27 0.50 0.77 (0.27) (0.87) (1.14) 13.49 5.75 642,053 0.30 – 1.96 26.1 2022 18.60 0.37 (3.32) (2.95) (0.36) (1.43) (1.79) 13.86 (17.32) 649,784 0.29 – 2.34 50.4 2021 15.36 0.25 3.52 3.77 (0.25) (0.28) (0.53) 18.60 24.93 896,603 0.28 – 1.42 31.3 R-3 shares 2025 16.48 0.27 1.74 2.01 (0.26) (0.80) (1.06) 17.43 12.99 24,411 0.85 – 1.65 44.7 2024 13.42 0.24 3.06 3.30 (0.24) – (0.24) 16.48 24.70 23,739 0.85 – 1.51 17.3 2023 13.80 0.19 0.49 0.68 (0.19) (0.87) (1.06) 13.42 5.12 19,264 0.85 – 1.40 26.1 2022 18.51 0.29 (3.30) (3.01) (0.27) (1.43) (1.70) 13.80 (17.71) 18,236 0.85 – 1.83 50.4 2021 15.31 0.15 3.50 3.65 (0.17) (0.28) (0.45) 18.51 24.17 27,419 0.84 – 0.84 31.3 R-5 shares 2025 16.54 0.32 1.76 2.08 (0.32) (0.80) (1.12) 17.50 13.37 34,970 0.54 – 1.94 44.7 2024 13.47 0.30 3.05 3.35 (0.28) – (0.28) 16.54 25.04 25,389 0.54 – 1.92 17.3 2023 13.84 0.24 0.50 0.74 (0.24) (0.87) (1.11) 13.47 5.51 29,840 0.54 – 1.74 26.1 2022 18.56 0.32 (3.29) (2.97) (0.32) (1.43) (1.75) 13.84 (17.45) 29,709 0.54 – 2.05 50.4 2021 15.33 0.20 3.52 3.72 (0.21) (0.28) (0.49) 18.56 24.60 37,892 0.53 – 1.15 31.3 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. 101

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![null102.jpg](ck0000898745-20260227_g165.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 SAM BALANCED PORTFOLIO Class A shares 2025 $16.96 $0.31 $1.81 $2.12 ($0.30) ($0.80) ($1.10) $17.98 13.30%(b) $2,202,184 0.59% –% 1.85% 44.7% 2024 13.81 0.29 3.13 3.42 (0.27) – (0.27) 16.96 24.93 (b) 2,156,725 0.59 – 1.79 17.3 2023 14.16 0.24 0.51 0.75 (0.23) (0.87) (1.10) 13.81 5.44 (b) 1,897,327 0.62 – 1.66 26.1 2022 18.95 0.32 (3.38) (3.06) (0.30) (1.43) (1.73) 14.16 (17.52) (b) 1,965,970 0.60 – 1.98 50.4 2021 15.64 0.20 3.58 3.78 (0.19) (0.28) (0.47) 18.95 24.55 (b) 2,523,065 0.59 – 1.11 31.3 Class C shares 2025 16.51 0.18 1.76 1.94 (0.18) (0.80) (0.98) 17.47 12.44 (b) 102,794 1.36 – 1.13 44.7 2024 13.44 0.17 3.05 3.22 (0.15) – (0.15) 16.51 24.04 (b) 115,518 1.37 – 1.07 17.3 2023 13.81 0.13 0.48 0.61 (0.11) (0.87) (0.98) 13.44 4.59 (b) 130,921 1.40 – 0.93 26.1 2022 18.53 0.20 (3.30) (3.10) (0.19) (1.43) (1.62) 13.81 (18.16) (b) 174,776 1.38 – 1.26 50.4 2021 15.36 0.06 3.51 3.57 (0.12) (0.28) (0.40) 18.53 23.57 (b) 281,665 1.37 – 0.37 31.3 Class J shares 2025 16.14 0.32 1.72 2.04 (0.33) (0.80) (1.13) 17.05 13.49 (b) 1,712,349 0.44 (c) 0.45 (d) 1.99 44.7 2024 13.15 0.30 2.99 3.29 (0.30) – (0.30) 16.14 25.20 (b) 1,594,700 0.42 (c) 0.44 (d) 1.93 17.3 2023 13.54 0.25 0.48 0.73 (0.25) (0.87) (1.12) 13.15 5.59 (b) 1,263,792 0.44 (c) 0.46 (d) 1.82 26.1 2022 18.20 0.32 (3.22) (2.90) (0.33) (1.43) (1.76) 13.54 (17.39) (b) 1,158,071 0.45 (c) 0.47 (d) 2.11 50.4 2021 15.05 0.22 3.43 3.65 (0.22) (0.28) (0.50) 18.20 24.65 (b) 1,336,353 0.44 (c) 0.47 (d) 1.25 31.3 Institutional shares 2025 16.57 0.35 1.77 2.12 (0.35) (0.80) (1.15) 17.54 13.66 717,428 0.29 – 2.15 44.7 2024 13.49 0.33 3.07 3.40 (0.32) – (0.32) 16.57 25.38 688,003 0.29 – 2.08 17.3 2023 13.86 0.27 0.50 0.77 (0.27) (0.87) (1.14) 13.49 5.75 642,053 0.30 – 1.96 26.1 2022 18.60 0.37 (3.32) (2.95) (0.36) (1.43) (1.79) 13.86 (17.32) 649,784 0.29 – 2.34 50.4 2021 15.36 0.25 3.52 3.77 (0.25) (0.28) (0.53) 18.60 24.93 896,603 0.28 – 1.42 31.3 R-3 shares 2025 16.48 0.27 1.74 2.01 (0.26) (0.80) (1.06) 17.43 12.99 24,411 0.85 – 1.65 44.7 2024 13.42 0.24 3.06 3.30 (0.24) – (0.24) 16.48 24.70 23,739 0.85 – 1.51 17.3 2023 13.80 0.19 0.49 0.68 (0.19) (0.87) (1.06) 13.42 5.12 19,264 0.85 – 1.40 26.1 2022 18.51 0.29 (3.30) (3.01) (0.27) (1.43) (1.70) 13.80 (17.71) 18,236 0.85 – 1.83 50.4 2021 15.31 0.15 3.50 3.65 (0.17) (0.28) (0.45) 18.51 24.17 27,419 0.84 – 0.84 31.3 R-5 shares 2025 16.54 0.32 1.76 2.08 (0.32) (0.80) (1.12) 17.50 13.37 34,970 0.54 – 1.94 44.7 2024 13.47 0.30 3.05 3.35 (0.28) – (0.28) 16.54 25.04 25,389 0.54 – 1.92 17.3 2023 13.84 0.24 0.50 0.74 (0.24) (0.87) (1.11) 13.47 5.51 29,840 0.54 – 1.74 26.1 2022 18.56 0.32 (3.29) (2.97) (0.32) (1.43) (1.75) 13.84 (17.45) 29,709 0.54 – 2.05 50.4 2021 15.33 0.20 3.52 3.72 (0.21) (0.28) (0.49) 18.56 24.60 37,892 0.53 – 1.15 31.3 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. 102

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![null103.jpg](ck0000898745-20260227_g166.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 SAM CONSERVATIVE BALANCED PORTFOLIO Class A shares 2025 $12.56 $0.31 $0.99 $1.30 ($0.30) ($0.14) ($0.44) $13.42 10.72%(b) $522,349 0.59% –% 2.43% 32.3% 2024 10.73 0.29 1.82 2.11 (0.28) – (0.28) 12.56 19.85 (b) 525,205 0.60 – 2.43 19.9 2023 10.85 0.23 0.14 0.37 (0.22) (0.27) (0.49) 10.73 3.42 (b) 492,836 0.62 – 2.06 25.5 2022 13.95 0.26 (2.41) (2.15) (0.25) (0.70) (0.95) 10.85 (16.39) (b) 521,254 0.61 – 2.11 55.3 2021 12.17 0.19 1.92 2.11 (0.19) (0.14) (0.33) 13.95 17.49 (b) 650,919 0.60 – 1.41 29.9 Class C shares 2025 12.40 0.21 0.98 1.19 (0.20) (0.14) (0.34) 13.25 9.87 (b) 30,894 1.39 – 1.69 32.3 2024 10.59 0.21 1.79 2.00 (0.19) – (0.19) 12.40 18.94 (b) 38,812 1.38 – 1.75 19.9 2023 10.71 0.15 0.13 0.28 (0.13) (0.27) (0.40) 10.59 2.58 (b) 47,961 1.42 – 1.33 25.5 2022 13.78 0.16 (2.38) (2.22) (0.15) (0.70) (0.85) 10.71 (17.06) (b) 70,882 1.38 – 1.37 55.3 2021 12.03 0.09 1.90 1.99 (0.10) (0.14) (0.24) 13.78 16.66 (b) 114,412 1.37 – 0.66 29.9 Class J shares 2025 12.34 0.32 0.97 1.29 (0.32) (0.14) (0.46) 13.17 10.85 (b) 1,074,776 0.44 (c) 0.44 (d) 2.58 32.3 2024 10.54 0.30 1.81 2.11 (0.31) – (0.31) 12.34 20.13 (b) 1,040,737 0.43 (c) 0.44 (d) 2.57 19.9 2023 10.67 0.24 0.14 0.38 (0.24) (0.27) (0.51) 10.54 3.57 (b) 852,351 0.44 (c) 0.46 (d) 2.22 25.5 2022 13.74 0.27 (2.37) (2.10) (0.27) (0.70) (0.97) 10.67 (16.28) (b) 776,202 0.45 (c) 0.47 (d) 2.25 55.3 2021 11.99 0.21 1.89 2.10 (0.21) (0.14) (0.35) 13.74 17.69 (b) 869,500 0.44 (c) 0.47 (d) 1.56 29.9 Institutional shares 2025 12.39 0.34 0.98 1.32 (0.34) (0.14) (0.48) 13.23 11.03 213,226 0.30 – 2.71 32.3 2024 10.59 0.32 1.80 2.12 (0.32) – (0.32) 12.39 20.17 212,509 0.30 – 2.71 19.9 2023 10.71 0.26 0.15 0.41 (0.26) (0.27) (0.53) 10.59 3.79 186,288 0.31 – 2.37 25.5 2022 13.79 0.29 (2.38) (2.09) (0.29) (0.70) (0.99) 10.71 (16.17) 206,697 0.30 – 2.43 55.3 2021 12.03 0.23 1.90 2.13 (0.23) (0.14) (0.37) 13.79 17.89 268,505 0.29 – 1.71 29.9 R-3 shares 2025 12.36 0.28 0.97 1.25 (0.27) (0.14) (0.41) 13.20 10.46 12,775 0.85 – 2.23 32.3 2024 10.57 0.25 1.80 2.05 (0.26) – (0.26) 12.36 19.49 11,594 0.85 – 2.11 19.9 2023 10.69 0.19 0.16 0.35 (0.20) (0.27) (0.47) 10.57 3.23 8,792 0.86 – 1.77 25.5 2022 13.76 0.23 (2.38) (2.15) (0.22) (0.70) (0.92) 10.69 (16.60) 8,497 0.85 – 1.89 55.3 2021 12.01 0.16 1.89 2.05 (0.16) (0.14) (0.30) 13.76 17.18 11,129 0.84 – 1.18 29.9 R-5 shares 2025 12.38 0.31 0.98 1.29 (0.31) (0.14) (0.45) 13.22 10.80 28,303 0.54 – 2.50 32.3 2024 10.58 0.30 1.79 2.09 (0.29) – (0.29) 12.38 19.91 18,165 0.54 – 2.51 19.9 2023 10.71 0.23 0.14 0.37 (0.23) (0.27) (0.50) 10.58 3.45 19,409 0.55 – 2.11 25.5 2022 13.78 0.25 (2.36) (2.11) (0.26) (0.70) (0.96) 10.71 (16.31) 19,091 0.54 – 2.11 55.3 2021 12.02 0.19 1.91 2.10 (0.20) (0.14) (0.34) 13.78 17.61 20,710 0.53 – 1.46 29.9 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. 103

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![null104.jpg](ck0000898745-20260227_g167.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 SAM CONSERVATIVE BALANCED PORTFOLIO Class A shares 2025 $12.56 $0.31 $0.99 $1.30 ($0.30) ($0.14) ($0.44) $13.42 10.72%(b) $522,349 0.59% –% 2.43% 32.3% 2024 10.73 0.29 1.82 2.11 (0.28) – (0.28) 12.56 19.85 (b) 525,205 0.60 – 2.43 19.9 2023 10.85 0.23 0.14 0.37 (0.22) (0.27) (0.49) 10.73 3.42 (b) 492,836 0.62 – 2.06 25.5 2022 13.95 0.26 (2.41) (2.15) (0.25) (0.70) (0.95) 10.85 (16.39) (b) 521,254 0.61 – 2.11 55.3 2021 12.17 0.19 1.92 2.11 (0.19) (0.14) (0.33) 13.95 17.49 (b) 650,919 0.60 – 1.41 29.9 Class C shares 2025 12.40 0.21 0.98 1.19 (0.20) (0.14) (0.34) 13.25 9.87 (b) 30,894 1.39 – 1.69 32.3 2024 10.59 0.21 1.79 2.00 (0.19) – (0.19) 12.40 18.94 (b) 38,812 1.38 – 1.75 19.9 2023 10.71 0.15 0.13 0.28 (0.13) (0.27) (0.40) 10.59 2.58 (b) 47,961 1.42 – 1.33 25.5 2022 13.78 0.16 (2.38) (2.22) (0.15) (0.70) (0.85) 10.71 (17.06) (b) 70,882 1.38 – 1.37 55.3 2021 12.03 0.09 1.90 1.99 (0.10) (0.14) (0.24) 13.78 16.66 (b) 114,412 1.37 – 0.66 29.9 Class J shares 2025 12.34 0.32 0.97 1.29 (0.32) (0.14) (0.46) 13.17 10.85 (b) 1,074,776 0.44 (c) 0.44 (d) 2.58 32.3 2024 10.54 0.30 1.81 2.11 (0.31) – (0.31) 12.34 20.13 (b) 1,040,737 0.43 (c) 0.44 (d) 2.57 19.9 2023 10.67 0.24 0.14 0.38 (0.24) (0.27) (0.51) 10.54 3.57 (b) 852,351 0.44 (c) 0.46 (d) 2.22 25.5 2022 13.74 0.27 (2.37) (2.10) (0.27) (0.70) (0.97) 10.67 (16.28) (b) 776,202 0.45 (c) 0.47 (d) 2.25 55.3 2021 11.99 0.21 1.89 2.10 (0.21) (0.14) (0.35) 13.74 17.69 (b) 869,500 0.44 (c) 0.47 (d) 1.56 29.9 Institutional shares 2025 12.39 0.34 0.98 1.32 (0.34) (0.14) (0.48) 13.23 11.03 213,226 0.30 – 2.71 32.3 2024 10.59 0.32 1.80 2.12 (0.32) – (0.32) 12.39 20.17 212,509 0.30 – 2.71 19.9 2023 10.71 0.26 0.15 0.41 (0.26) (0.27) (0.53) 10.59 3.79 186,288 0.31 – 2.37 25.5 2022 13.79 0.29 (2.38) (2.09) (0.29) (0.70) (0.99) 10.71 (16.17) 206,697 0.30 – 2.43 55.3 2021 12.03 0.23 1.90 2.13 (0.23) (0.14) (0.37) 13.79 17.89 268,505 0.29 – 1.71 29.9 R-3 shares 2025 12.36 0.28 0.97 1.25 (0.27) (0.14) (0.41) 13.20 10.46 12,775 0.85 – 2.23 32.3 2024 10.57 0.25 1.80 2.05 (0.26) – (0.26) 12.36 19.49 11,594 0.85 – 2.11 19.9 2023 10.69 0.19 0.16 0.35 (0.20) (0.27) (0.47) 10.57 3.23 8,792 0.86 – 1.77 25.5 2022 13.76 0.23 (2.38) (2.15) (0.22) (0.70) (0.92) 10.69 (16.60) 8,497 0.85 – 1.89 55.3 2021 12.01 0.16 1.89 2.05 (0.16) (0.14) (0.30) 13.76 17.18 11,129 0.84 – 1.18 29.9 R-5 shares 2025 12.38 0.31 0.98 1.29 (0.31) (0.14) (0.45) 13.22 10.80 28,303 0.54 – 2.50 32.3 2024 10.58 0.30 1.79 2.09 (0.29) – (0.29) 12.38 19.91 18,165 0.54 – 2.51 19.9 2023 10.71 0.23 0.14 0.37 (0.23) (0.27) (0.50) 10.58 3.45 19,409 0.55 – 2.11 25.5 2022 13.78 0.25 (2.36) (2.11) (0.26) (0.70) (0.96) 10.71 (16.31) 19,091 0.54 – 2.11 55.3 2021 12.02 0.19 1.91 2.10 (0.20) (0.14) (0.34) 13.78 17.61 20,710 0.53 – 1.46 29.9 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. 104

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![null105.jpg](ck0000898745-20260227_g168.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 SAM CONSERVATIVE GROWTH PORTFOLIO Class A shares 2025 $20.30 $0.26 $2.59 $2.85 ($0.26) ($1.13) ($1.39) $21.76 15.00%(b) $1,803,526 0.59% –% 1.31% 41.9% 2024 15.91 0.24 4.37 4.61 (0.22) – (0.22) 20.30 29.15 (b) 1,739,501 0.59 – 1.26 18.3 2023 16.64 0.19 0.87 1.06 (0.17) (1.62) (1.79) 15.91 6.95 (b) 1,484,518 0.62 – 1.16 25.6 2022 22.20 0.33 (4.18) (3.85) (0.26) (1.45) (1.71) 16.64 (18.70) (b) 1,508,702 0.60 – 1.76 52.4 2021 17.41 0.17 5.27 5.44 (0.24) (0.41) (0.65) 22.20 31.84 (b) 1,979,014 0.59 – 0.81 34.3 Class C shares 2025 18.14 0.11 2.28 2.39 (0.11) (1.13) (1.24) 19.29 14.11 (b) 74,549 1.36 – 0.59 41.9 2024 14.22 0.09 3.90 3.99 (0.07) – (0.07) 18.14 28.12 (b) 86,958 1.37 – 0.53 18.3 2023 15.03 0.06 0.79 0.85 (0.04) (1.62) (1.66) 14.22 6.19 (b) 92,295 1.42 – 0.40 25.6 2022 20.21 0.18 (3.82) (3.64) (0.09) (1.45) (1.54) 15.03 (19.39) (b) 121,737 1.37 – 1.05 52.4 2021 15.91 0.01 4.81 4.82 (0.11) (0.41) (0.52) 20.21 30.82 (b) 190,605 1.38 – 0.07 34.3 Class J shares 2025 19.23 0.27 2.44 2.71 (0.29) (1.13) (1.42) 20.52 15.17 (b) 1,009,226 0.45 (c) 0.45 (d) 1.43 41.9 2024 15.09 0.25 4.14 4.39 (0.25) – (0.25) 19.23 29.32 (b) 889,283 0.43 (c) 0.44 (d) 1.40 18.3 2023 15.87 0.20 0.84 1.04 (0.20) (1.62) (1.82) 15.09 7.19 (b) 690,996 0.45 (c) 0.47 (d) 1.32 25.6 2022 21.26 0.34 (3.99) (3.65) (0.29) (1.45) (1.74) 15.87 (18.59) (b) 636,126 0.45 (c) 0.47 (d) 1.90 52.4 2021 16.70 0.19 5.05 5.24 (0.27) (0.41) (0.68) 21.26 32.04 (b) 778,913 0.45 (c) 0.47 (d) 0.95 34.3 Institutional shares 2025 19.66 0.31 2.49 2.80 (0.31) (1.13) (1.44) 21.02 15.33 468,388 0.30 – 1.60 41.9 2024 15.42 0.28 4.23 4.51 (0.27) – (0.27) 19.66 29.50 455,578 0.30 – 1.55 18.3 2023 16.18 0.23 0.85 1.08 (0.22) (1.62) (1.84) 15.42 7.35 397,434 0.30 – 1.47 25.6 2022 21.64 0.38 (4.07) (3.69) (0.32) (1.45) (1.77) 16.18 (18.48) 395,979 0.29 – 2.08 52.4 2021 16.98 0.23 5.14 5.37 (0.30) (0.41) (0.71) 21.64 32.27 539,619 0.29 – 1.12 34.3 R-3 shares 2025 19.19 0.20 2.43 2.63 (0.23) (1.13) (1.36) 20.46 14.69 11,586 0.85 – 1.06 41.9 2024 15.06 0.18 4.13 4.31 (0.18) – (0.18) 19.19 28.76 9,881 0.85 – 1.02 18.3 2023 15.82 0.15 0.83 0.98 (0.12) (1.62) (1.74) 15.06 6.80 7,737 0.85 – 0.98 25.6 2022 21.20 0.28 (4.01) (3.73) (0.20) (1.45) (1.65) 15.82 (18.95) 10,909 0.85 – 1.58 52.4 2021 16.65 0.11 5.05 5.16 (0.20) (0.41) (0.61) 21.20 31.58 15,823 0.84 – 0.56 34.3 R-5 shares 2025 19.45 0.27 2.46 2.73 (0.27) (1.13) (1.40) 20.78 15.10 29,749 0.54 – 1.39 41.9 2024 15.26 0.24 4.18 4.42 (0.23) – (0.23) 19.45 29.20 28,551 0.54 – 1.32 18.3 2023 16.03 0.19 0.84 1.03 (0.18) (1.62) (1.80) 15.26 7.04 24,555 0.54 – 1.21 25.6 2022 21.46 0.34 (4.04) (3.70) (0.28) (1.45) (1.73) 16.03 (18.66) 23,881 0.54 – 1.86 52.4 2021 16.85 0.17 5.10 5.27 (0.25) (0.41) (0.66) 21.46 31.91 30,075 0.53 – 0.86 34.3 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. 105

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![null106.jpg](ck0000898745-20260227_g169.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 SAM CONSERVATIVE GROWTH PORTFOLIO Class A shares 2025 $20.30 $0.26 $2.59 $2.85 ($0.26) ($1.13) ($1.39) $21.76 15.00%(b) $1,803,526 0.59% –% 1.31% 41.9% 2024 15.91 0.24 4.37 4.61 (0.22) – (0.22) 20.30 29.15 (b) 1,739,501 0.59 – 1.26 18.3 2023 16.64 0.19 0.87 1.06 (0.17) (1.62) (1.79) 15.91 6.95 (b) 1,484,518 0.62 – 1.16 25.6 2022 22.20 0.33 (4.18) (3.85) (0.26) (1.45) (1.71) 16.64 (18.70) (b) 1,508,702 0.60 – 1.76 52.4 2021 17.41 0.17 5.27 5.44 (0.24) (0.41) (0.65) 22.20 31.84 (b) 1,979,014 0.59 – 0.81 34.3 Class C shares 2025 18.14 0.11 2.28 2.39 (0.11) (1.13) (1.24) 19.29 14.11 (b) 74,549 1.36 – 0.59 41.9 2024 14.22 0.09 3.90 3.99 (0.07) – (0.07) 18.14 28.12 (b) 86,958 1.37 – 0.53 18.3 2023 15.03 0.06 0.79 0.85 (0.04) (1.62) (1.66) 14.22 6.19 (b) 92,295 1.42 – 0.40 25.6 2022 20.21 0.18 (3.82) (3.64) (0.09) (1.45) (1.54) 15.03 (19.39) (b) 121,737 1.37 – 1.05 52.4 2021 15.91 0.01 4.81 4.82 (0.11) (0.41) (0.52) 20.21 30.82 (b) 190,605 1.38 – 0.07 34.3 Class J shares 2025 19.23 0.27 2.44 2.71 (0.29) (1.13) (1.42) 20.52 15.17 (b) 1,009,226 0.45 (c) 0.45 (d) 1.43 41.9 2024 15.09 0.25 4.14 4.39 (0.25) – (0.25) 19.23 29.32 (b) 889,283 0.43 (c) 0.44 (d) 1.40 18.3 2023 15.87 0.20 0.84 1.04 (0.20) (1.62) (1.82) 15.09 7.19 (b) 690,996 0.45 (c) 0.47 (d) 1.32 25.6 2022 21.26 0.34 (3.99) (3.65) (0.29) (1.45) (1.74) 15.87 (18.59) (b) 636,126 0.45 (c) 0.47 (d) 1.90 52.4 2021 16.70 0.19 5.05 5.24 (0.27) (0.41) (0.68) 21.26 32.04 (b) 778,913 0.45 (c) 0.47 (d) 0.95 34.3 Institutional shares 2025 19.66 0.31 2.49 2.80 (0.31) (1.13) (1.44) 21.02 15.33 468,388 0.30 – 1.60 41.9 2024 15.42 0.28 4.23 4.51 (0.27) – (0.27) 19.66 29.50 455,578 0.30 – 1.55 18.3 2023 16.18 0.23 0.85 1.08 (0.22) (1.62) (1.84) 15.42 7.35 397,434 0.30 – 1.47 25.6 2022 21.64 0.38 (4.07) (3.69) (0.32) (1.45) (1.77) 16.18 (18.48) 395,979 0.29 – 2.08 52.4 2021 16.98 0.23 5.14 5.37 (0.30) (0.41) (0.71) 21.64 32.27 539,619 0.29 – 1.12 34.3 R-3 shares 2025 19.19 0.20 2.43 2.63 (0.23) (1.13) (1.36) 20.46 14.69 11,586 0.85 – 1.06 41.9 2024 15.06 0.18 4.13 4.31 (0.18) – (0.18) 19.19 28.76 9,881 0.85 – 1.02 18.3 2023 15.82 0.15 0.83 0.98 (0.12) (1.62) (1.74) 15.06 6.80 7,737 0.85 – 0.98 25.6 2022 21.20 0.28 (4.01) (3.73) (0.20) (1.45) (1.65) 15.82 (18.95) 10,909 0.85 – 1.58 52.4 2021 16.65 0.11 5.05 5.16 (0.20) (0.41) (0.61) 21.20 31.58 15,823 0.84 – 0.56 34.3 R-5 shares 2025 19.45 0.27 2.46 2.73 (0.27) (1.13) (1.40) 20.78 15.10 29,749 0.54 – 1.39 41.9 2024 15.26 0.24 4.18 4.42 (0.23) – (0.23) 19.45 29.20 28,551 0.54 – 1.32 18.3 2023 16.03 0.19 0.84 1.03 (0.18) (1.62) (1.80) 15.26 7.04 24,555 0.54 – 1.21 25.6 2022 21.46 0.34 (4.04) (3.70) (0.28) (1.45) (1.73) 16.03 (18.66) 23,881 0.54 – 1.86 52.4 2021 16.85 0.17 5.10 5.27 (0.25) (0.41) (0.66) 21.46 31.91 30,075 0.53 – 0.86 34.3 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. 106

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![null107.jpg](ck0000898745-20260227_g170.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 SAM FLEXIBLE INCOME PORTFOLIO Class A shares 2025 $12.17 $0.36 $0.69 $1.05 ($0.35) $– ($0.35) $12.87 8.82%(b) $868,475 0.59% –% 2.91% 23.9% 2024 10.75 0.35 1.42 1.77 (0.35) – (0.35) 12.17 16.58 (b) 918,982 0.59 – 2.99 19.8 2023 10.78 0.26 (0.03) 0.23 (0.26) – (0.26) 10.75 2.05 (b) 919,005 0.61 – 2.33 20.8 2022 13.56 0.28 (2.25) (1.97) (0.28) (0.53) (0.81) 10.78 (15.28) (b) 1,032,096 0.60 – 2.32 57.3 2021 12.38 0.23 1.29 1.52 (0.23) (0.11) (0.34) 13.56 12.40 (b) 1,289,067 0.59 – 1.72 29.3 Class C shares 2025 12.02 0.27 0.68 0.95 (0.25) – (0.25) 12.72 8.06 (b) 51,518 1.38 – 2.19 23.9 2024 10.62 0.27 1.38 1.65 (0.25) – (0.25) 12.02 15.67 (b) 71,603 1.38 – 2.29 19.8 2023 10.66 0.18 (0.05) 0.13 (0.17) – (0.17) 10.62 1.15 (b) 91,832 1.40 – 1.60 20.8 2022 13.41 0.19 (2.22) (2.03) (0.19) (0.53) (0.72) 10.66 (15.90) (b) 135,741 1.38 – 1.57 57.3 2021 12.24 0.13 1.27 1.40 (0.12) (0.11) (0.23) 13.41 11.58 (b) 205,567 1.36 – 0.96 29.3 Class J shares 2025 12.03 0.37 0.70 1.07 (0.37) – (0.37) 12.73 9.09 (b) 1,114,673 0.44 (c) 0.44 (d) 3.05 23.9 2024 10.63 0.37 1.40 1.77 (0.37) – (0.37) 12.03 16.78 (b) 1,151,699 0.42 (c) 0.44 (d) 3.13 19.8 2023 10.67 0.28 (0.04) 0.24 (0.28) – (0.28) 10.63 2.16 (b) 1,064,611 0.43 (c) 0.45 (d) 2.49 20.8 2022 13.43 0.29 (2.22) (1.93) (0.30) (0.53) (0.83) 10.67 (15.14) (b) 1,086,460 0.44 (c) 0.46 (d) 2.48 57.3 2021 12.26 0.25 1.28 1.53 (0.25) (0.11) (0.36) 13.43 12.61 (b) 1,321,469 0.44 (c) 0.46 (d) 1.88 29.3 Institutional shares 2025 12.12 0.38 0.70 1.08 (0.38) – (0.38) 12.82 9.15 186,610 0.32 – 3.12 23.9 2024 10.70 0.38 1.42 1.80 (0.38) – (0.38) 12.12 16.98 180,539 0.32 – 3.22 19.8 2023 10.74 0.29 (0.04) 0.25 (0.29) – (0.29) 10.70 2.25 164,167 0.32 – 2.60 20.8 2022 13.51 0.31 (2.23) (1.92) (0.32) (0.53) (0.85) 10.74 (15.01) 173,873 0.31 – 2.62 57.3 2021 12.34 0.26 1.28 1.54 (0.26) (0.11) (0.37) 13.51 12.68 236,379 0.31 – 2.00 29.3 R-3 shares 2025 12.09 0.37 0.65 1.02 (0.32) – (0.32) 12.79 8.59 2,603 0.85 – 3.04 23.9 2024 10.68 0.32 1.41 1.73 (0.32) – (0.32) 12.09 16.30 3,170 0.85 – 2.75 19.8 2023 10.71 0.24 (0.04) 0.20 (0.23) – (0.23) 10.68 1.81 3,109 0.85 – 2.15 20.8 2022 13.48 0.25 (2.24) (1.99) (0.25) (0.53) (0.78) 10.71 (15.51) 3,569 0.85 – 2.07 57.3 2021 12.31 0.19 1.28 1.47 (0.19) (0.11) (0.30) 13.48 12.11 5,117 0.84 – 1.48 29.3 R-5 shares 2025 12.09 0.37 0.70 1.07 (0.36) – (0.36) 12.80 9.00 8,083 0.54 – 2.99 23.9 2024 10.68 0.30 1.46 1.76 (0.35) – (0.35) 12.09 16.67 20,849 0.54 – 2.58 19.8 2023 10.72 0.26 (0.04) 0.22 (0.26) – (0.26) 10.68 2.03 7,888 0.54 – 2.37 20.8 2022 13.48 0.28 (2.22) (1.94) (0.29) (0.53) (0.82) 10.72 (15.16) 8,059 0.54 – 2.38 57.3 2021 12.31 0.23 1.28 1.51 (0.23) (0.11) (0.34) 13.48 12.46 10,225 0.53 – 1.78 29.3 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. 107

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![null108.jpg](ck0000898745-20260227_g171.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 SAM FLEXIBLE INCOME PORTFOLIO Class A shares 2025 $12.17 $0.36 $0.69 $1.05 ($0.35) $– ($0.35) $12.87 8.82%(b) $868,475 0.59% –% 2.91% 23.9% 2024 10.75 0.35 1.42 1.77 (0.35) – (0.35) 12.17 16.58 (b) 918,982 0.59 – 2.99 19.8 2023 10.78 0.26 (0.03) 0.23 (0.26) – (0.26) 10.75 2.05 (b) 919,005 0.61 – 2.33 20.8 2022 13.56 0.28 (2.25) (1.97) (0.28) (0.53) (0.81) 10.78 (15.28) (b) 1,032,096 0.60 – 2.32 57.3 2021 12.38 0.23 1.29 1.52 (0.23) (0.11) (0.34) 13.56 12.40 (b) 1,289,067 0.59 – 1.72 29.3 Class C shares 2025 12.02 0.27 0.68 0.95 (0.25) – (0.25) 12.72 8.06 (b) 51,518 1.38 – 2.19 23.9 2024 10.62 0.27 1.38 1.65 (0.25) – (0.25) 12.02 15.67 (b) 71,603 1.38 – 2.29 19.8 2023 10.66 0.18 (0.05) 0.13 (0.17) – (0.17) 10.62 1.15 (b) 91,832 1.40 – 1.60 20.8 2022 13.41 0.19 (2.22) (2.03) (0.19) (0.53) (0.72) 10.66 (15.90) (b) 135,741 1.38 – 1.57 57.3 2021 12.24 0.13 1.27 1.40 (0.12) (0.11) (0.23) 13.41 11.58 (b) 205,567 1.36 – 0.96 29.3 Class J shares 2025 12.03 0.37 0.70 1.07 (0.37) – (0.37) 12.73 9.09 (b) 1,114,673 0.44 (c) 0.44 (d) 3.05 23.9 2024 10.63 0.37 1.40 1.77 (0.37) – (0.37) 12.03 16.78 (b) 1,151,699 0.42 (c) 0.44 (d) 3.13 19.8 2023 10.67 0.28 (0.04) 0.24 (0.28) – (0.28) 10.63 2.16 (b) 1,064,611 0.43 (c) 0.45 (d) 2.49 20.8 2022 13.43 0.29 (2.22) (1.93) (0.30) (0.53) (0.83) 10.67 (15.14) (b) 1,086,460 0.44 (c) 0.46 (d) 2.48 57.3 2021 12.26 0.25 1.28 1.53 (0.25) (0.11) (0.36) 13.43 12.61 (b) 1,321,469 0.44 (c) 0.46 (d) 1.88 29.3 Institutional shares 2025 12.12 0.38 0.70 1.08 (0.38) – (0.38) 12.82 9.15 186,610 0.32 – 3.12 23.9 2024 10.70 0.38 1.42 1.80 (0.38) – (0.38) 12.12 16.98 180,539 0.32 – 3.22 19.8 2023 10.74 0.29 (0.04) 0.25 (0.29) – (0.29) 10.70 2.25 164,167 0.32 – 2.60 20.8 2022 13.51 0.31 (2.23) (1.92) (0.32) (0.53) (0.85) 10.74 (15.01) 173,873 0.31 – 2.62 57.3 2021 12.34 0.26 1.28 1.54 (0.26) (0.11) (0.37) 13.51 12.68 236,379 0.31 – 2.00 29.3 R-3 shares 2025 12.09 0.37 0.65 1.02 (0.32) – (0.32) 12.79 8.59 2,603 0.85 – 3.04 23.9 2024 10.68 0.32 1.41 1.73 (0.32) – (0.32) 12.09 16.30 3,170 0.85 – 2.75 19.8 2023 10.71 0.24 (0.04) 0.20 (0.23) – (0.23) 10.68 1.81 3,109 0.85 – 2.15 20.8 2022 13.48 0.25 (2.24) (1.99) (0.25) (0.53) (0.78) 10.71 (15.51) 3,569 0.85 – 2.07 57.3 2021 12.31 0.19 1.28 1.47 (0.19) (0.11) (0.30) 13.48 12.11 5,117 0.84 – 1.48 29.3 R-5 shares 2025 12.09 0.37 0.70 1.07 (0.36) – (0.36) 12.80 9.00 8,083 0.54 – 2.99 23.9 2024 10.68 0.30 1.46 1.76 (0.35) – (0.35) 12.09 16.67 20,849 0.54 – 2.58 19.8 2023 10.72 0.26 (0.04) 0.22 (0.26) – (0.26) 10.68 2.03 7,888 0.54 – 2.37 20.8 2022 13.48 0.28 (2.22) (1.94) (0.29) (0.53) (0.82) 10.72 (15.16) 8,059 0.54 – 2.38 57.3 2021 12.31 0.23 1.28 1.51 (0.23) (0.11) (0.34) 13.48 12.46 10,225 0.53 – 1.78 29.3 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. 108

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![null109.jpg](ck0000898745-20260227_g172.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 SAM STRATEGIC GROWTH PORTFOLIO Class A shares 2025 $23.61 $0.23 $3.39 $3.62 ($0.21) ($1.38) ($1.59) $25.64 16.41%(b) $1,394,075 0.59% –% 0.96% 44.8% 2024 18.11 0.20 5.53 5.73 (0.17) (0.06) (0.23) 23.61 31.89 (b) 1,305,661 0.60 – 0.89 18.2 2023 18.24 0.14 1.32 1.46 (0.13) (1.46) (1.59) 18.11 8.57 (b) 1,081,383 0.63 – 0.73 27.2 2022 24.57 0.34 (4.93) (4.59) (0.34) (1.40) (1.74) 18.24 (19.99) (b) 1,066,233 0.61 – 1.67 49.5 2021 18.57 0.17 6.67 6.84 (0.17) (0.67) (0.84) 24.57 37.68 (b) 1,401,140 0.60 – 0.75 26.3 Class C shares 2025 20.22 0.04 2.88 2.92 (0.06) (1.38) (1.44) 21.70 15.53 (b) 66,773 1.38 – 0.22 44.8 2024 15.54 0.03 4.74 4.77 (0.03) (0.06) (0.09) 20.22 30.84 (b) 70,160 1.39 – 0.14 18.2 2023 15.88 (0.01) 1.13 1.12 – (1.46) (1.46) 15.54 7.61 (b) 66,235 1.45 – (0.03) 27.2 2022 21.60 0.17 (4.33) (4.16) (0.16) (1.40) (1.56) 15.88 (20.59) (b) 77,837 1.41 – 0.94 49.5 2021 16.43 0.01 5.87 5.88 (0.04) (0.67) (0.71) 21.60 36.56 (b) 115,136 1.39 – 0.04 26.3 Class J shares 2025 22.38 0.24 3.20 3.44 (0.25) (1.38) (1.63) 24.19 16.52 (b) 573,321 0.46 (c) 0.46 (d) 1.07 44.8 2024 17.18 0.21 5.26 5.47 (0.21) (0.06) (0.27) 22.38 32.10 (b) 493,983 0.44 (c) 0.46 (d) 1.02 18.2 2023 17.39 0.15 1.26 1.41 (0.16) (1.46) (1.62) 17.18 8.73 (b) 372,876 0.47 (c) 0.49 (d) 0.87 27.2 2022 23.51 0.35 (4.70) (4.35) (0.37) (1.40) (1.77) 17.39 (19.87) (b) 334,032 0.47 (c) 0.49 (d) 1.78 49.5 2021 17.80 0.19 6.39 6.58 (0.20) (0.67) (0.87) 23.51 37.88 (b) 410,297 0.46 (c) 0.48 (d) 0.88 26.3 Institutional shares 2025 22.80 0.29 3.27 3.56 (0.28) (1.38) (1.66) 24.70 16.77 381,234 0.30 – 1.26 44.8 2024 17.50 0.25 5.35 5.60 (0.24) (0.06) (0.30) 22.80 32.27 356,421 0.30 – 1.19 18.2 2023 17.69 0.19 1.27 1.46 (0.19) (1.46) (1.65) 17.50 8.89 299,870 0.30 – 1.04 27.2 2022 23.88 0.40 (4.78) (4.38) (0.41) (1.40) (1.81) 17.69 (19.73) 271,120 0.29 – 1.99 49.5 2021 18.06 0.23 6.49 6.72 (0.23) (0.67) (0.90) 23.88 38.14 362,447 0.29 – 1.05 26.3 R-3 shares 2025 22.27 0.14 3.21 3.35 (0.15) (1.38) (1.53) 24.09 16.13 9,073 0.85 – 0.65 44.8 2024 17.10 0.13 5.23 5.36 (0.13) (0.06) (0.19) 22.27 31.55 7,327 0.85 – 0.62 18.2 2023 17.31 0.09 1.25 1.34 (0.09) (1.46) (1.55) 17.10 8.33 6,746 0.85 – 0.50 27.2 2022 23.43 0.32 (4.74) (4.42) (0.30) (1.40) (1.70) 17.31 (20.20) 6,564 0.85 – 1.60 49.5 2021 17.72 0.08 6.40 6.48 (0.10) (0.67) (0.77) 23.43 37.38 9,782 0.84 – 0.36 26.3 R-5 shares 2025 22.43 0.23 3.22 3.45 (0.24) (1.38) (1.62) 24.26 16.50 32,154 0.54 – 1.05 44.8 2024 17.23 0.19 5.27 5.46 (0.20) (0.06) (0.26) 22.43 31.92 28,145 0.54 – 0.91 18.2 2023 17.43 0.14 1.26 1.40 (0.14) (1.46) (1.60) 17.23 8.67 19,279 0.54 – 0.79 27.2 2022 23.56 0.33 (4.70) (4.37) (0.36) (1.40) (1.76) 17.43 (19.95) (e) 19,246 0.54 – 1.70 49.5 2021 17.84 0.17 6.40 6.57 (0.18) (0.67) (0.85) 23.56 37.80 (e) 24,908 0.53 – 0.77 26.3 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (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. 109

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![null110.jpg](ck0000898745-20260227_g173.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 SAM STRATEGIC GROWTH PORTFOLIO Class A shares 2025 $23.61 $0.23 $3.39 $3.62 ($0.21) ($1.38) ($1.59) $25.64 16.41%(b) $1,394,075 0.59% –% 0.96% 44.8% 2024 18.11 0.20 5.53 5.73 (0.17) (0.06) (0.23) 23.61 31.89 (b) 1,305,661 0.60 – 0.89 18.2 2023 18.24 0.14 1.32 1.46 (0.13) (1.46) (1.59) 18.11 8.57 (b) 1,081,383 0.63 – 0.73 27.2 2022 24.57 0.34 (4.93) (4.59) (0.34) (1.40) (1.74) 18.24 (19.99) (b) 1,066,233 0.61 – 1.67 49.5 2021 18.57 0.17 6.67 6.84 (0.17) (0.67) (0.84) 24.57 37.68 (b) 1,401,140 0.60 – 0.75 26.3 Class C shares 2025 20.22 0.04 2.88 2.92 (0.06) (1.38) (1.44) 21.70 15.53 (b) 66,773 1.38 – 0.22 44.8 2024 15.54 0.03 4.74 4.77 (0.03) (0.06) (0.09) 20.22 30.84 (b) 70,160 1.39 – 0.14 18.2 2023 15.88 (0.01) 1.13 1.12 – (1.46) (1.46) 15.54 7.61 (b) 66,235 1.45 – (0.03) 27.2 2022 21.60 0.17 (4.33) (4.16) (0.16) (1.40) (1.56) 15.88 (20.59) (b) 77,837 1.41 – 0.94 49.5 2021 16.43 0.01 5.87 5.88 (0.04) (0.67) (0.71) 21.60 36.56 (b) 115,136 1.39 – 0.04 26.3 Class J shares 2025 22.38 0.24 3.20 3.44 (0.25) (1.38) (1.63) 24.19 16.52 (b) 573,321 0.46 (c) 0.46 (d) 1.07 44.8 2024 17.18 0.21 5.26 5.47 (0.21) (0.06) (0.27) 22.38 32.10 (b) 493,983 0.44 (c) 0.46 (d) 1.02 18.2 2023 17.39 0.15 1.26 1.41 (0.16) (1.46) (1.62) 17.18 8.73 (b) 372,876 0.47 (c) 0.49 (d) 0.87 27.2 2022 23.51 0.35 (4.70) (4.35) (0.37) (1.40) (1.77) 17.39 (19.87) (b) 334,032 0.47 (c) 0.49 (d) 1.78 49.5 2021 17.80 0.19 6.39 6.58 (0.20) (0.67) (0.87) 23.51 37.88 (b) 410,297 0.46 (c) 0.48 (d) 0.88 26.3 Institutional shares 2025 22.80 0.29 3.27 3.56 (0.28) (1.38) (1.66) 24.70 16.77 381,234 0.30 – 1.26 44.8 2024 17.50 0.25 5.35 5.60 (0.24) (0.06) (0.30) 22.80 32.27 356,421 0.30 – 1.19 18.2 2023 17.69 0.19 1.27 1.46 (0.19) (1.46) (1.65) 17.50 8.89 299,870 0.30 – 1.04 27.2 2022 23.88 0.40 (4.78) (4.38) (0.41) (1.40) (1.81) 17.69 (19.73) 271,120 0.29 – 1.99 49.5 2021 18.06 0.23 6.49 6.72 (0.23) (0.67) (0.90) 23.88 38.14 362,447 0.29 – 1.05 26.3 R-3 shares 2025 22.27 0.14 3.21 3.35 (0.15) (1.38) (1.53) 24.09 16.13 9,073 0.85 – 0.65 44.8 2024 17.10 0.13 5.23 5.36 (0.13) (0.06) (0.19) 22.27 31.55 7,327 0.85 – 0.62 18.2 2023 17.31 0.09 1.25 1.34 (0.09) (1.46) (1.55) 17.10 8.33 6,746 0.85 – 0.50 27.2 2022 23.43 0.32 (4.74) (4.42) (0.30) (1.40) (1.70) 17.31 (20.20) 6,564 0.85 – 1.60 49.5 2021 17.72 0.08 6.40 6.48 (0.10) (0.67) (0.77) 23.43 37.38 9,782 0.84 – 0.36 26.3 R-5 shares 2025 22.43 0.23 3.22 3.45 (0.24) (1.38) (1.62) 24.26 16.50 32,154 0.54 – 1.05 44.8 2024 17.23 0.19 5.27 5.46 (0.20) (0.06) (0.26) 22.43 31.92 28,145 0.54 – 0.91 18.2 2023 17.43 0.14 1.26 1.40 (0.14) (1.46) (1.60) 17.23 8.67 19,279 0.54 – 0.79 27.2 2022 23.56 0.33 (4.70) (4.37) (0.36) (1.40) (1.76) 17.43 (19.95) (e) 19,246 0.54 – 1.70 49.5 2021 17.84 0.17 6.40 6.57 (0.18) (0.67) (0.85) 23.56 37.80 (e) 24,908 0.53 – 0.77 26.3 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (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. 110

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![null111.jpg](ck0000898745-20260227_g174.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 SHORT-TERM INCOME FUND Class A shares 2025 $11.99 $0.44 $0.18 $0.62 ($0.45) $– ($0.45) $12.16 5.22%(b) $325,160 0.60% –% 3.67% 42.3% 2024 11.57 0.41 0.42 0.83 (0.41) – (0.41) 11.99 7.27 (b) 315,310 0.63 – 3.46 46.7 2023 11.40 0.32 0.18 0.50 (0.33) – (0.33) 11.57 4.39 (b) 316,038 0.65 – 2.79 35.4 2022 12.32 0.16 (0.86) (0.70) (0.16) (0.06) (0.22) 11.40 (5.73) (b) 353,052 0.65 – 1.32 28.4 2021 12.54 0.11 (0.13) (0.02) (0.11) (0.09) (0.20) 12.32 (0.17) (b) 470,326 0.67 – 0.89 52.4 Class C shares 2025 11.99 0.33 0.17 0.50 (0.33) – (0.33) 12.16 4.23 (b) 12,936 1.54 – 2.73 42.3 2024 11.58 0.30 0.41 0.71 (0.30) – (0.30) 11.99 6.17 (b) 15,263 1.58 – 2.51 46.7 2023 11.40 0.21 0.18 0.39 (0.21) – (0.21) 11.58 3.46 (b) 17,277 1.63 – 1.79 35.4 2022 12.32 0.05 (0.86) (0.81) (0.05) (0.06) (0.11) 11.40 (6.61) (b) 23,675 1.57 – 0.38 28.4 2021 12.55 – (0.13) (0.13) (0.01) (0.09) (0.10) 12.32 (1.09) (b) 34,992 1.56 – 0.02 52.4 Class J shares 2025 11.98 0.44 0.18 0.62 (0.45) – (0.45) 12.15 5.24 (b) 104,710 0.59 (c) 0.59 (d) 3.69 42.3 2024 11.56 0.42 0.42 0.84 (0.42) – (0.42) 11.98 7.32 (b) 109,830 0.59 (c) 0.60 (d) 3.50 46.7 2023 11.39 0.33 0.17 0.50 (0.33) – (0.33) 11.56 4.43 (b) 115,360 0.61 (c) 0.63 (d) 2.83 35.4 2022 12.31 0.16 (0.86) (0.70) (0.16) (0.06) (0.22) 11.39 (5.72) (b) 127,563 0.62 (c) 0.64 (d) 1.36 28.4 2021 12.53 0.12 (0.13) (0.01) (0.12) (0.09) (0.21) 12.31 (0.13) (b) 154,334 0.62 (c) 0.65 (d) 0.94 52.4 Institutional shares 2025 11.98 0.47 0.17 0.64 (0.47) – (0.47) 12.15 5.44 3,069,877 0.39 – 3.88 42.3 2024 11.57 0.44 0.41 0.85 (0.44) – (0.44) 11.98 7.40 2,865,011 0.43 – 3.67 46.7 2023 11.39 0.35 0.18 0.53 (0.35) – (0.35) 11.57 4.72 2,375,615 0.42 (e) – 3.02 35.4 2022 12.31 0.18 (0.85) (0.67) (0.19) (0.06) (0.25) 11.39 (5.53) 2,654,929 0.43 (e) – 1.53 28.4 2021 12.53 0.14 (0.13) 0.01 (0.14) (0.09) (0.23) 12.31 0.06 3,531,191 0.43 (e) – 1.14 52.4 R-3 shares 2025 11.99 0.40 0.18 0.58 (0.41) – (0.41) 12.16 4.88 6,658 0.92 – 3.35 42.3 2024 11.57 0.37 0.42 0.79 (0.37) – (0.37) 11.99 6.93 9,050 0.95 – 3.14 46.7 2023 11.40 0.29 0.17 0.46 (0.29) – (0.29) 11.57 4.07 9,999 0.95 – 2.50 35.4 2022 12.32 0.12 (0.86) (0.74) (0.12) (0.06) (0.18) 11.40 (6.03) 9,841 0.96 – 1.02 28.4 2021 12.54 0.07 (0.12) (0.05) (0.08) (0.09) (0.17) 12.32 (0.48) 10,268 0.98 – 0.58 52.4 R-5 shares 2025 11.99 0.44 0.17 0.61 (0.44) – (0.44) 12.16 5.21 11,445 0.61 – 3.67 42.3 2024 11.58 0.41 0.41 0.82 (0.41) – (0.41) 11.99 7.17 7,909 0.64 – 3.44 46.7 2023 11.40 0.32 0.19 0.51 (0.33) – (0.33) 11.58 4.49 8,616 0.64 – 2.80 35.4 2022 12.32 0.16 (0.86) (0.70) (0.16) (0.06) (0.22) 11.40 (5.74) 9,125 0.65 – 1.31 28.4 2021 12.54 0.11 (0.13) (0.02) (0.11) (0.09) (0.20) 12.32 (0.17) 11,377 0.67 – 0.90 52.4 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 111

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![null112.jpg](ck0000898745-20260227_g175.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 SHORT-TERM INCOME FUND Class A shares 2025 $11.99 $0.44 $0.18 $0.62 ($0.45) $– ($0.45) $12.16 5.22%(b) $325,160 0.60% –% 3.67% 42.3% 2024 11.57 0.41 0.42 0.83 (0.41) – (0.41) 11.99 7.27 (b) 315,310 0.63 – 3.46 46.7 2023 11.40 0.32 0.18 0.50 (0.33) – (0.33) 11.57 4.39 (b) 316,038 0.65 – 2.79 35.4 2022 12.32 0.16 (0.86) (0.70) (0.16) (0.06) (0.22) 11.40 (5.73) (b) 353,052 0.65 – 1.32 28.4 2021 12.54 0.11 (0.13) (0.02) (0.11) (0.09) (0.20) 12.32 (0.17) (b) 470,326 0.67 – 0.89 52.4 Class C shares 2025 11.99 0.33 0.17 0.50 (0.33) – (0.33) 12.16 4.23 (b) 12,936 1.54 – 2.73 42.3 2024 11.58 0.30 0.41 0.71 (0.30) – (0.30) 11.99 6.17 (b) 15,263 1.58 – 2.51 46.7 2023 11.40 0.21 0.18 0.39 (0.21) – (0.21) 11.58 3.46 (b) 17,277 1.63 – 1.79 35.4 2022 12.32 0.05 (0.86) (0.81) (0.05) (0.06) (0.11) 11.40 (6.61) (b) 23,675 1.57 – 0.38 28.4 2021 12.55 – (0.13) (0.13) (0.01) (0.09) (0.10) 12.32 (1.09) (b) 34,992 1.56 – 0.02 52.4 Class J shares 2025 11.98 0.44 0.18 0.62 (0.45) – (0.45) 12.15 5.24 (b) 104,710 0.59 (c) 0.59 (d) 3.69 42.3 2024 11.56 0.42 0.42 0.84 (0.42) – (0.42) 11.98 7.32 (b) 109,830 0.59 (c) 0.60 (d) 3.50 46.7 2023 11.39 0.33 0.17 0.50 (0.33) – (0.33) 11.56 4.43 (b) 115,360 0.61 (c) 0.63 (d) 2.83 35.4 2022 12.31 0.16 (0.86) (0.70) (0.16) (0.06) (0.22) 11.39 (5.72) (b) 127,563 0.62 (c) 0.64 (d) 1.36 28.4 2021 12.53 0.12 (0.13) (0.01) (0.12) (0.09) (0.21) 12.31 (0.13) (b) 154,334 0.62 (c) 0.65 (d) 0.94 52.4 Institutional shares 2025 11.98 0.47 0.17 0.64 (0.47) – (0.47) 12.15 5.44 3,069,877 0.39 – 3.88 42.3 2024 11.57 0.44 0.41 0.85 (0.44) – (0.44) 11.98 7.40 2,865,011 0.43 – 3.67 46.7 2023 11.39 0.35 0.18 0.53 (0.35) – (0.35) 11.57 4.72 2,375,615 0.42 (e) – 3.02 35.4 2022 12.31 0.18 (0.85) (0.67) (0.19) (0.06) (0.25) 11.39 (5.53) 2,654,929 0.43 (e) – 1.53 28.4 2021 12.53 0.14 (0.13) 0.01 (0.14) (0.09) (0.23) 12.31 0.06 3,531,191 0.43 (e) – 1.14 52.4 R-3 shares 2025 11.99 0.40 0.18 0.58 (0.41) – (0.41) 12.16 4.88 6,658 0.92 – 3.35 42.3 2024 11.57 0.37 0.42 0.79 (0.37) – (0.37) 11.99 6.93 9,050 0.95 – 3.14 46.7 2023 11.40 0.29 0.17 0.46 (0.29) – (0.29) 11.57 4.07 9,999 0.95 – 2.50 35.4 2022 12.32 0.12 (0.86) (0.74) (0.12) (0.06) (0.18) 11.40 (6.03) 9,841 0.96 – 1.02 28.4 2021 12.54 0.07 (0.12) (0.05) (0.08) (0.09) (0.17) 12.32 (0.48) 10,268 0.98 – 0.58 52.4 R-5 shares 2025 11.99 0.44 0.17 0.61 (0.44) – (0.44) 12.16 5.21 11,445 0.61 – 3.67 42.3 2024 11.58 0.41 0.41 0.82 (0.41) – (0.41) 11.99 7.17 7,909 0.64 – 3.44 46.7 2023 11.40 0.32 0.19 0.51 (0.33) – (0.33) 11.58 4.49 8,616 0.64 – 2.80 35.4 2022 12.32 0.16 (0.86) (0.70) (0.16) (0.06) (0.22) 11.40 (5.74) 9,125 0.65 – 1.31 28.4 2021 12.54 0.11 (0.13) (0.02) (0.11) (0.09) (0.20) 12.32 (0.17) 11,377 0.67 – 0.90 52.4 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 112

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![null113.jpg](ck0000898745-20260227_g176.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 SMALLCAP FUND Class A shares 2025 $25.95 ($0.01) $3.24 $3.23 ($0.02) ($0.46) ($0.48) $28.70 12.68%(b) $262,541 1.11% –% (0.03)% 31.4% 2024 20.93 0.05 5.70 5.75 (0.04) (0.69) (0.73) 25.95 27.75 (b) 263,797 1.11 – 0.19 41.1 2023 22.97 0.02 (2.06) (2.04) – – – 20.93 (8.88) (b) 230,211 1.19 – 0.08 28.7 2022 30.71 (0.02) (5.59) (5.61) – (2.13) (2.13) 22.97 (19.05) (b) 253,893 1.14 – (0.07) 18.7 2021 20.37 (0.10) 11.00 10.90 – (0.56) (0.56) 30.71 54.21 (b) 348,066 1.12 – (0.35) 38.0 Class J shares 2025 24.50 0.03 3.05 3.08 (0.06) (0.46) (0.52) 27.06 12.85 (b) 192,751 0.97 (c) 0.97 (d) 0.10 31.4 2024 19.80 0.08 5.39 5.47 (0.08) (0.69) (0.77) 24.50 27.94 (b) 192,105 0.96 (c) 0.97 (d) 0.34 41.1 2023 21.72 0.05 (1.95) (1.90) (0.02) – (0.02) 19.80 (8.75) (b) 165,565 1.02 (c) 1.04 (d) 0.24 28.7 2022 29.11 0.02 (5.28) (5.26) – (2.13) (2.13) 21.72 (18.88) (b) 193,888 0.99 (c) 1.01 (d) 0.08 18.7 2021 19.30 (0.05) 10.42 10.37 – (0.56) (0.56) 29.11 54.39 (b),(e) 259,335 0.98 (c) 1.00 (d) (0.20) 38.0 Institutional shares 2025 28.80 0.06 3.61 3.67 (0.08) (0.46) (0.54) 31.93 12.99 751,830 0.85 (f) – 0.22 31.4 2024 23.16 0.13 6.31 6.44 (0.11) (0.69) (0.80) 28.80 28.10 745,771 0.85 (f) – 0.47 41.1 2023 25.39 0.11 (2.29) (2.18) (0.05) – (0.05) 23.16 (8.61) 378,571 0.85 (f) – 0.42 28.7 2022 33.60 0.06 (6.14) (6.08) – (2.13) (2.13) 25.39 (18.79) 411,643 0.85 (f) – 0.21 18.7 2021 22.21 (0.03) 12.01 11.98 – (0.59) (0.59) 33.60 54.64 577,259 0.85 (f) – (0.09) 38.0 R-3 shares 2025 25.67 (0.06) 3.21 3.15 – (0.46) (0.46) 28.36 12.51 17,143 1.30 – (0.23) 31.4 2024 20.72 – 5.65 5.65 (0.01) (0.69) (0.70) 25.67 27.55 15,484 1.31 – (0.01) 41.1 2023 22.78 (0.01) (2.05) (2.06) – – – 20.72 (9.04) 14,313 1.31 – (0.05) 28.7 2022 30.51 (0.06) (5.54) (5.60) – (2.13) (2.13) 22.78 (19.15) 14,119 1.31 – (0.24) 18.7 2021 20.28 (0.15) 10.94 10.79 – (0.56) (0.56) 30.51 53.90 15,267 1.31 – (0.54) 38.0 R-5 shares 2025 28.32 0.03 3.53 3.56 (0.06) (0.46) (0.52) 31.36 12.83 58,569 0.99 – 0.09 31.4 2024 22.79 0.08 6.21 6.29 (0.07) (0.69) (0.76) 28.32 27.87 44,708 1.00 – 0.30 41.1 2023 24.98 0.07 (2.25) (2.18) (0.01) – (0.01) 22.79 (8.72) 38,705 1.00 – 0.26 28.7 2022 33.14 0.02 (6.05) (6.03) – (2.13) (2.13) 24.98 (18.91) 50,244 1.00 – 0.09 18.7 2021 21.91 (0.07) 11.86 11.79 – (0.56) (0.56) 33.14 54.46 44,522 1.00 – (0.23) 38.0 R-6 shares 2025 28.84 0.10 3.60 3.70 (0.11) (0.46) (0.57) 31.97 13.10 981,889 0.73 (f) – 0.35 31.4 2024 23.19 0.15 6.33 6.48 (0.14) (0.69) (0.83) 28.84 28.23 986,896 0.74 (f) – 0.53 41.1 2023 25.42 0.13 (2.28) (2.15) (0.08) – (0.08) 23.19 (8.49) 200,915 0.76 (f) – 0.51 28.7 2022 33.61 0.08 (6.14) (6.06) – (2.13) (2.13) 25.42 (18.72) 221,952 0.75 (f) – 0.32 18.7 2021 22.21 – 12.01 12.01 – (0.61) (0.61) 33.61 54.76 169,609 0.75 (f) – 0.01 38.0 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (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) Subject to Manager's contractual expense limit. 113

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![null114.jpg](ck0000898745-20260227_g177.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 SMALLCAP FUND Class A shares 2025 $25.95 ($0.01) $3.24 $3.23 ($0.02) ($0.46) ($0.48) $28.70 12.68%(b) $262,541 1.11% –% (0.03)% 31.4% 2024 20.93 0.05 5.70 5.75 (0.04) (0.69) (0.73) 25.95 27.75 (b) 263,797 1.11 – 0.19 41.1 2023 22.97 0.02 (2.06) (2.04) – – – 20.93 (8.88) (b) 230,211 1.19 – 0.08 28.7 2022 30.71 (0.02) (5.59) (5.61) – (2.13) (2.13) 22.97 (19.05) (b) 253,893 1.14 – (0.07) 18.7 2021 20.37 (0.10) 11.00 10.90 – (0.56) (0.56) 30.71 54.21 (b) 348,066 1.12 – (0.35) 38.0 Class J shares 2025 24.50 0.03 3.05 3.08 (0.06) (0.46) (0.52) 27.06 12.85 (b) 192,751 0.97 (c) 0.97 (d) 0.10 31.4 2024 19.80 0.08 5.39 5.47 (0.08) (0.69) (0.77) 24.50 27.94 (b) 192,105 0.96 (c) 0.97 (d) 0.34 41.1 2023 21.72 0.05 (1.95) (1.90) (0.02) – (0.02) 19.80 (8.75) (b) 165,565 1.02 (c) 1.04 (d) 0.24 28.7 2022 29.11 0.02 (5.28) (5.26) – (2.13) (2.13) 21.72 (18.88) (b) 193,888 0.99 (c) 1.01 (d) 0.08 18.7 2021 19.30 (0.05) 10.42 10.37 – (0.56) (0.56) 29.11 54.39 (b),(e) 259,335 0.98 (c) 1.00 (d) (0.20) 38.0 Institutional shares 2025 28.80 0.06 3.61 3.67 (0.08) (0.46) (0.54) 31.93 12.99 751,830 0.85 (f) – 0.22 31.4 2024 23.16 0.13 6.31 6.44 (0.11) (0.69) (0.80) 28.80 28.10 745,771 0.85 (f) – 0.47 41.1 2023 25.39 0.11 (2.29) (2.18) (0.05) – (0.05) 23.16 (8.61) 378,571 0.85 (f) – 0.42 28.7 2022 33.60 0.06 (6.14) (6.08) – (2.13) (2.13) 25.39 (18.79) 411,643 0.85 (f) – 0.21 18.7 2021 22.21 (0.03) 12.01 11.98 – (0.59) (0.59) 33.60 54.64 577,259 0.85 (f) – (0.09) 38.0 R-3 shares 2025 25.67 (0.06) 3.21 3.15 – (0.46) (0.46) 28.36 12.51 17,143 1.30 – (0.23) 31.4 2024 20.72 – 5.65 5.65 (0.01) (0.69) (0.70) 25.67 27.55 15,484 1.31 – (0.01) 41.1 2023 22.78 (0.01) (2.05) (2.06) – – – 20.72 (9.04) 14,313 1.31 – (0.05) 28.7 2022 30.51 (0.06) (5.54) (5.60) – (2.13) (2.13) 22.78 (19.15) 14,119 1.31 – (0.24) 18.7 2021 20.28 (0.15) 10.94 10.79 – (0.56) (0.56) 30.51 53.90 15,267 1.31 – (0.54) 38.0 R-5 shares 2025 28.32 0.03 3.53 3.56 (0.06) (0.46) (0.52) 31.36 12.83 58,569 0.99 – 0.09 31.4 2024 22.79 0.08 6.21 6.29 (0.07) (0.69) (0.76) 28.32 27.87 44,708 1.00 – 0.30 41.1 2023 24.98 0.07 (2.25) (2.18) (0.01) – (0.01) 22.79 (8.72) 38,705 1.00 – 0.26 28.7 2022 33.14 0.02 (6.05) (6.03) – (2.13) (2.13) 24.98 (18.91) 50,244 1.00 – 0.09 18.7 2021 21.91 (0.07) 11.86 11.79 – (0.56) (0.56) 33.14 54.46 44,522 1.00 – (0.23) 38.0 R-6 shares 2025 28.84 0.10 3.60 3.70 (0.11) (0.46) (0.57) 31.97 13.10 981,889 0.73 (f) – 0.35 31.4 2024 23.19 0.15 6.33 6.48 (0.14) (0.69) (0.83) 28.84 28.23 986,896 0.74 (f) – 0.53 41.1 2023 25.42 0.13 (2.28) (2.15) (0.08) – (0.08) 23.19 (8.49) 200,915 0.76 (f) – 0.51 28.7 2022 33.61 0.08 (6.14) (6.06) – (2.13) (2.13) 25.42 (18.72) 221,952 0.75 (f) – 0.32 18.7 2021 22.21 – 12.01 12.01 – (0.61) (0.61) 33.61 54.76 169,609 0.75 (f) – 0.01 38.0 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (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) Subject to Manager's contractual expense limit. 114

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![null115.jpg](ck0000898745-20260227_g178.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 SMALLCAP GROWTH FUND I Class J shares 2025 $9.29 ($0.05) $1.27 $1.22 ($0.08) ($1.12) ($1.20) $9.31 14.71%(b) $71,569 1.11%(c) 1.13%(d) (0.62)% 70.1% 2024 6.89 (0.04) 2.44 2.40 – – – 9.29 34.83 (b) 69,270 1.09 (c) 1.13 (d) (0.49) 61.2 2023 7.47 (0.04) (0.44) (0.48) – (0.10) (0.10) 6.89 (6.47) (b) 56,943 1.14 (c) 1.18 (d) (0.49) 50.3 2022 13.34 (0.06) (3.36) (3.42) – (2.45) (2.45) 7.47 (29.78) (b) 63,827 1.11 (c) 1.15 (d) (0.64) 50.7 2021 10.37 (0.09) 3.94 3.85 – (0.88) (0.88) 13.34 38.18 (b) 103,343 1.07 (c) 1.11 (d) (0.74) 62.1 Institutional shares 2025 15.75 (0.07) 2.26 2.19 (0.08) (1.12) (1.20) 16.74 14.83 96,068 0.95 (e) – (0.46) 70.1 2024 11.66 (0.05) 4.14 4.09 – – – 15.75 35.08 114,047 0.96 (e) – (0.35) 61.2 2023 12.54 (0.04) (0.74) (0.78) – (0.10) (0.10) 11.66 (6.25) 133,979 0.97 (e) – (0.32) 50.3 2022 20.54 (0.07) (5.48) (5.55) – (2.45) (2.45) 12.54 (29.74) (f) 195,117 0.94 (e) – (0.47) 50.7 2021 15.56 (0.12) 5.98 5.86 – (0.88) (0.88) 20.54 38.44 (f) 300,718 0.93 (e) – (0.60) 62.1 R-3 shares 2025 11.51 (0.10) 1.61 1.51 (0.05) (1.12) (1.17) 11.85 14.32 16,554 1.41 (e) – (0.93) 70.1 2024 8.56 (0.09) 3.04 2.95 – – – 11.51 34.46 15,205 1.41 (e) – (0.80) 61.2 2023 9.28 (0.07) (0.55) (0.62) – (0.10) (0.10) 8.56 (6.62) (f) 11,855 1.41 (e) – (0.75) 50.3 2022 15.96 (0.10) (4.13) (4.23) – (2.45) (2.45) 9.28 (30.07) (f) 13,703 1.40 (e) – (0.94) 50.7 2021 12.30 (0.16) 4.70 4.54 – (0.88) (0.88) 15.96 37.78 18,489 1.40 (e) – (1.07) 62.1 R-5 shares 2025 14.06 (0.08) 1.99 1.91 (0.07) (1.12) (1.19) 14.78 14.65 29,868 1.10 (e) – (0.62) 70.1 2024 10.43 (0.06) 3.69 3.63 – – – 14.06 34.80 23,968 1.10 (e) – (0.49) 61.2 2023 11.24 (0.05) (0.66) (0.71) – (0.10) (0.10) 10.43 (6.34) 20,970 1.10 (e) – (0.44) 50.3 2022 18.71 (0.08) (4.94) (5.02) – (2.45) (2.45) 11.24 (29.79) 32,559 1.09 (e) – (0.63) 50.7 2021 14.25 (0.13) 5.47 5.34 – (0.88) (0.88) 18.71 38.24 50,285 1.09 (e) – (0.75) 62.1 R-6 shares 2025 15.81 (0.05) 2.27 2.22 (0.10) (1.12) (1.22) 16.81 14.99 1,976,046 0.84 (e) – (0.36) 70.1 2024 11.70 (0.03) 4.14 4.11 – – – 15.81 35.13 1,892,007 0.84 (e) – (0.23) 61.2 2023 12.57 (0.02) (0.75) (0.77) – (0.10) (0.10) 11.70 (6.07) (f) 1,786,028 0.84 (e) – (0.19) 50.3 2022 20.56 (0.05) (5.49) (5.54) – (2.45) (2.45) 12.57 (29.67) (f) 1,935,411 0.84 (e) – (0.37) 50.7 2021 15.55 (0.10) 5.99 5.89 – (0.88) (0.88) 20.56 38.60 2,780,704 0.83 (e) – (0.50) 62.1 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. (f) 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. 115

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![null116.jpg](ck0000898745-20260227_g179.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 SMALLCAP GROWTH FUND I Class J shares 2025 $9.29 ($0.05) $1.27 $1.22 ($0.08) ($1.12) ($1.20) $9.31 14.71%(b) $71,569 1.11%(c) 1.13%(d) (0.62)% 70.1% 2024 6.89 (0.04) 2.44 2.40 – – – 9.29 34.83 (b) 69,270 1.09 (c) 1.13 (d) (0.49) 61.2 2023 7.47 (0.04) (0.44) (0.48) – (0.10) (0.10) 6.89 (6.47) (b) 56,943 1.14 (c) 1.18 (d) (0.49) 50.3 2022 13.34 (0.06) (3.36) (3.42) – (2.45) (2.45) 7.47 (29.78) (b) 63,827 1.11 (c) 1.15 (d) (0.64) 50.7 2021 10.37 (0.09) 3.94 3.85 – (0.88) (0.88) 13.34 38.18 (b) 103,343 1.07 (c) 1.11 (d) (0.74) 62.1 Institutional shares 2025 15.75 (0.07) 2.26 2.19 (0.08) (1.12) (1.20) 16.74 14.83 96,068 0.95 (e) – (0.46) 70.1 2024 11.66 (0.05) 4.14 4.09 – – – 15.75 35.08 114,047 0.96 (e) – (0.35) 61.2 2023 12.54 (0.04) (0.74) (0.78) – (0.10) (0.10) 11.66 (6.25) 133,979 0.97 (e) – (0.32) 50.3 2022 20.54 (0.07) (5.48) (5.55) – (2.45) (2.45) 12.54 (29.74) (f) 195,117 0.94 (e) – (0.47) 50.7 2021 15.56 (0.12) 5.98 5.86 – (0.88) (0.88) 20.54 38.44 (f) 300,718 0.93 (e) – (0.60) 62.1 R-3 shares 2025 11.51 (0.10) 1.61 1.51 (0.05) (1.12) (1.17) 11.85 14.32 16,554 1.41 (e) – (0.93) 70.1 2024 8.56 (0.09) 3.04 2.95 – – – 11.51 34.46 15,205 1.41 (e) – (0.80) 61.2 2023 9.28 (0.07) (0.55) (0.62) – (0.10) (0.10) 8.56 (6.62) (f) 11,855 1.41 (e) – (0.75) 50.3 2022 15.96 (0.10) (4.13) (4.23) – (2.45) (2.45) 9.28 (30.07) (f) 13,703 1.40 (e) – (0.94) 50.7 2021 12.30 (0.16) 4.70 4.54 – (0.88) (0.88) 15.96 37.78 18,489 1.40 (e) – (1.07) 62.1 R-5 shares 2025 14.06 (0.08) 1.99 1.91 (0.07) (1.12) (1.19) 14.78 14.65 29,868 1.10 (e) – (0.62) 70.1 2024 10.43 (0.06) 3.69 3.63 – – – 14.06 34.80 23,968 1.10 (e) – (0.49) 61.2 2023 11.24 (0.05) (0.66) (0.71) – (0.10) (0.10) 10.43 (6.34) 20,970 1.10 (e) – (0.44) 50.3 2022 18.71 (0.08) (4.94) (5.02) – (2.45) (2.45) 11.24 (29.79) 32,559 1.09 (e) – (0.63) 50.7 2021 14.25 (0.13) 5.47 5.34 – (0.88) (0.88) 18.71 38.24 50,285 1.09 (e) – (0.75) 62.1 R-6 shares 2025 15.81 (0.05) 2.27 2.22 (0.10) (1.12) (1.22) 16.81 14.99 1,976,046 0.84 (e) – (0.36) 70.1 2024 11.70 (0.03) 4.14 4.11 – – – 15.81 35.13 1,892,007 0.84 (e) – (0.23) 61.2 2023 12.57 (0.02) (0.75) (0.77) – (0.10) (0.10) 11.70 (6.07) (f) 1,786,028 0.84 (e) – (0.19) 50.3 2022 20.56 (0.05) (5.49) (5.54) – (2.45) (2.45) 12.57 (29.67) (f) 1,935,411 0.84 (e) – (0.37) 50.7 2021 15.55 (0.10) 5.99 5.89 – (0.88) (0.88) 20.56 38.60 2,780,704 0.83 (e) – (0.50) 62.1 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. (f) 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. 116

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![null117.jpg](ck0000898745-20260227_g180.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 SMALLCAP S&P 600 INDEX FUND Class J shares 2025 $25.21 $0.25 $0.99 $1.24 ($0.30) ($2.01) ($2.31) $24.14 5.21%(b) $172,867 0.39%(c) 0.39%(d) 1.07% 35.9% 2024 20.38 0.31 5.61 5.92 (0.34) (0.75) (1.09) 25.21 29.50 (b) 183,530 0.38 (c) 0.39 (d) 1.30 22.4 2023 24.87 0.31 (2.19) (1.88) (0.28) (2.33) (2.61) 20.38 (8.04) (b) 152,416 0.42 (c) 0.44 (d) 1.35 27.5 2022 31.18 0.27 (3.84) (3.57) (0.25) (2.49) (2.74) 24.87 (12.25) (b) 175,397 0.40 (c) 0.42 (d) 1.01 15.9 2021 20.17 0.24 11.32 11.56 (0.24) (0.31) (0.55) 31.18 57.97 (b) 209,971 0.39 (c) 0.41 (d) 0.83 11.9 Institutional shares 2025 27.51 0.32 1.07 1.39 (0.33) (2.01) (2.34) 26.56 5.35 173,727 0.21 (e) – 1.25 35.9 2024 22.15 0.38 6.12 6.50 (0.39) (0.75) (1.14) 27.51 29.76 222,349 0.21 (e) – 1.47 22.4 2023 26.79 0.38 (2.36) (1.98) (0.33) (2.33) (2.66) 22.15 (7.85) 200,564 0.21 (e) – 1.56 27.5 2022 33.36 0.34 (4.12) (3.78) (0.30) (2.49) (2.79) 26.79 (12.08) 229,566 0.21 (e) – 1.19 15.9 2021 21.54 0.31 12.09 12.40 (0.27) (0.31) (0.58) 33.36 58.26 291,508 0.21 (e) – 1.01 11.9 R-3 shares 2025 28.25 0.19 1.11 1.30 (0.20) (2.01) (2.21) 27.34 4.84 63,644 0.73 – 0.73 35.9 2024 22.72 0.26 6.27 6.53 (0.25) (0.75) (1.00) 28.25 29.09 66,441 0.73 – 0.96 22.4 2023 27.39 0.26 (2.42) (2.16) (0.18) (2.33) (2.51) 22.72 (8.33) 64,740 0.73 – 1.04 27.5 2022 34.04 0.20 (4.22) (4.02) (0.14) (2.49) (2.63) 27.39 (12.54) 79,204 0.73 – 0.67 15.9 2021 21.99 0.16 12.35 12.51 (0.15) (0.31) (0.46) 34.04 57.42 103,119 0.73 – 0.49 11.9 R-5 shares 2025 28.99 0.28 1.14 1.42 (0.29) (2.01) (2.30) 28.11 5.16 86,244 0.42 – 1.04 35.9 2024 23.29 0.35 6.43 6.78 (0.33) (0.75) (1.08) 28.99 29.49 88,918 0.42 – 1.26 22.4 2023 28.03 0.35 (2.49) (2.14) (0.27) (2.33) (2.60) 23.29 (8.07) 80,736 0.42 – 1.35 27.5 2022 34.76 0.29 (4.30) (4.01) (0.23) (2.49) (2.72) 28.03 (12.25) 103,304 0.42 – 0.99 15.9 2021 22.44 0.26 12.60 12.86 (0.23) (0.31) (0.54) 34.76 57.89 128,741 0.42 – 0.80 11.9 R-6 shares 2025 27.49 0.33 1.09 1.42 (0.35) (2.01) (2.36) 26.55 5.45 723,748 0.17 – 1.29 35.9 2024 22.14 0.39 6.11 6.50 (0.40) (0.75) (1.15) 27.49 29.78 623,848 0.16 – 1.52 22.4 2023 26.78 0.39 (2.36) (1.97) (0.34) (2.33) (2.67) 22.14 (7.80) 514,879 0.17 – 1.60 27.5 2022 33.35 0.35 (4.11) (3.76) (0.32) (2.49) (2.81) 26.78 (12.04) 533,682 0.16 (e) – 1.24 15.9 2021 21.54 0.33 12.08 12.41 (0.29) (0.31) (0.60) 33.35 58.33 646,055 0.16 (e) – 1.06 11.9 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 117

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![null118.jpg](ck0000898745-20260227_g181.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 SMALLCAP S&P 600 INDEX FUND Class J shares 2025 $25.21 $0.25 $0.99 $1.24 ($0.30) ($2.01) ($2.31) $24.14 5.21%(b) $172,867 0.39%(c) 0.39%(d) 1.07% 35.9% 2024 20.38 0.31 5.61 5.92 (0.34) (0.75) (1.09) 25.21 29.50 (b) 183,530 0.38 (c) 0.39 (d) 1.30 22.4 2023 24.87 0.31 (2.19) (1.88) (0.28) (2.33) (2.61) 20.38 (8.04) (b) 152,416 0.42 (c) 0.44 (d) 1.35 27.5 2022 31.18 0.27 (3.84) (3.57) (0.25) (2.49) (2.74) 24.87 (12.25) (b) 175,397 0.40 (c) 0.42 (d) 1.01 15.9 2021 20.17 0.24 11.32 11.56 (0.24) (0.31) (0.55) 31.18 57.97 (b) 209,971 0.39 (c) 0.41 (d) 0.83 11.9 Institutional shares 2025 27.51 0.32 1.07 1.39 (0.33) (2.01) (2.34) 26.56 5.35 173,727 0.21 (e) – 1.25 35.9 2024 22.15 0.38 6.12 6.50 (0.39) (0.75) (1.14) 27.51 29.76 222,349 0.21 (e) – 1.47 22.4 2023 26.79 0.38 (2.36) (1.98) (0.33) (2.33) (2.66) 22.15 (7.85) 200,564 0.21 (e) – 1.56 27.5 2022 33.36 0.34 (4.12) (3.78) (0.30) (2.49) (2.79) 26.79 (12.08) 229,566 0.21 (e) – 1.19 15.9 2021 21.54 0.31 12.09 12.40 (0.27) (0.31) (0.58) 33.36 58.26 291,508 0.21 (e) – 1.01 11.9 R-3 shares 2025 28.25 0.19 1.11 1.30 (0.20) (2.01) (2.21) 27.34 4.84 63,644 0.73 – 0.73 35.9 2024 22.72 0.26 6.27 6.53 (0.25) (0.75) (1.00) 28.25 29.09 66,441 0.73 – 0.96 22.4 2023 27.39 0.26 (2.42) (2.16) (0.18) (2.33) (2.51) 22.72 (8.33) 64,740 0.73 – 1.04 27.5 2022 34.04 0.20 (4.22) (4.02) (0.14) (2.49) (2.63) 27.39 (12.54) 79,204 0.73 – 0.67 15.9 2021 21.99 0.16 12.35 12.51 (0.15) (0.31) (0.46) 34.04 57.42 103,119 0.73 – 0.49 11.9 R-5 shares 2025 28.99 0.28 1.14 1.42 (0.29) (2.01) (2.30) 28.11 5.16 86,244 0.42 – 1.04 35.9 2024 23.29 0.35 6.43 6.78 (0.33) (0.75) (1.08) 28.99 29.49 88,918 0.42 – 1.26 22.4 2023 28.03 0.35 (2.49) (2.14) (0.27) (2.33) (2.60) 23.29 (8.07) 80,736 0.42 – 1.35 27.5 2022 34.76 0.29 (4.30) (4.01) (0.23) (2.49) (2.72) 28.03 (12.25) 103,304 0.42 – 0.99 15.9 2021 22.44 0.26 12.60 12.86 (0.23) (0.31) (0.54) 34.76 57.89 128,741 0.42 – 0.80 11.9 R-6 shares 2025 27.49 0.33 1.09 1.42 (0.35) (2.01) (2.36) 26.55 5.45 723,748 0.17 – 1.29 35.9 2024 22.14 0.39 6.11 6.50 (0.40) (0.75) (1.15) 27.49 29.78 623,848 0.16 – 1.52 22.4 2023 26.78 0.39 (2.36) (1.97) (0.34) (2.33) (2.67) 22.14 (7.80) 514,879 0.17 – 1.60 27.5 2022 33.35 0.35 (4.11) (3.76) (0.32) (2.49) (2.81) 26.78 (12.04) 533,682 0.16 (e) – 1.24 15.9 2021 21.54 0.33 12.08 12.41 (0.29) (0.31) (0.60) 33.35 58.33 646,055 0.16 (e) – 1.06 11.9 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. 118

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![null119.jpg](ck0000898745-20260227_g182.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 SMALLCAP VALUE FUND II Class J shares 2025 $12.06 $0.11 $0.46 $0.57 ($0.14) ($1.12) ($1.26) $11.37 5.13%(b) $18,883 1.21%(c) 1.23%(d) 0.99% 89.9% 2024 9.88 0.12 2.41 2.53 (0.10) (0.25) (0.35) 12.06 25.67 (b) 23,814 1.21 (c) 1.25 (d) 1.01 73.9 2023 11.41 0.09 (0.42) (0.33) (0.06) (1.14) (1.20) 9.88 (2.93) (b) 19,813 1.31 (c) 1.35 (d) 0.81 65.2 2022 14.02 0.05 (0.75) (0.70) (0.06) (1.85) (1.91) 11.41 (5.41) (b) 20,790 1.28 (c) 1.32 (d) 0.40 55.4 2021 8.63 0.04 5.39 5.43 (0.04) – (0.04) 14.02 63.03 (b) 23,564 1.29 (c) 1.33 (d) 0.35 87.5 Institutional shares 2025 12.62 0.15 0.48 0.63 (0.16) (1.12) (1.28) 11.97 5.47 146,676 0.94 (e) – 1.28 89.9 2024 10.34 0.16 2.50 2.66 (0.13) (0.25) (0.38) 12.62 25.89 171,914 0.96 (e) – 1.30 73.9 2023 11.88 0.13 (0.44) (0.31) (0.09) (1.14) (1.23) 10.34 (2.58) 193,833 0.96 (e) – 1.18 65.2 2022 14.50 0.09 (0.77) (0.68) (0.09) (1.85) (1.94) 11.88 (5.02) 185,308 0.96 (e) – 0.73 55.4 2021 8.94 0.09 5.56 5.65 (0.09) – (0.09) 14.50 63.45 204,526 0.96 (e) – 0.70 87.5 R-3 shares 2025 11.75 0.08 0.45 0.53 (0.11) (1.12) (1.23) 11.05 4.92 5,422 1.45 (e) – 0.75 89.9 2024 9.65 0.08 2.35 2.43 (0.08) (0.25) (0.33) 11.75 25.27 5,036 1.49 (e) – 0.75 73.9 2023 11.17 0.07 (0.41) (0.34) (0.04) (1.14) (1.18) 9.65 (3.12) 4,937 1.50 (e) – 0.63 65.2 2022 13.76 0.02 (0.73) (0.71) (0.03) (1.85) (1.88) 11.17 (5.59) 5,063 1.49 (e) – 0.19 55.4 2021 8.48 0.02 5.29 5.31 (0.03) – (0.03) 13.76 62.67 6,089 1.49 (e) – 0.14 87.5 R-5 shares 2025 12.28 0.12 0.46 0.58 (0.14) (1.12) (1.26) 11.60 5.18 6,748 1.14 (e) – 1.08 89.9 2024 10.06 0.13 2.44 2.57 (0.10) (0.25) (0.35) 12.28 25.69 6,507 1.18 (e) – 1.10 73.9 2023 11.59 0.10 (0.42) (0.32) (0.07) (1.14) (1.21) 10.06 (2.82) 10,587 1.19 (e) – 0.94 65.2 2022 14.20 0.06 (0.75) (0.69) (0.07) (1.85) (1.92) 11.59 (5.28) 13,339 1.18 (e) – 0.51 55.4 2021 8.75 0.06 5.45 5.51 (0.06) – (0.06) 14.20 63.22 16,754 1.18 (e) – 0.49 87.5 R-6 shares 2025 12.61 0.15 0.48 0.63 (0.16) (1.12) (1.28) 11.96 5.59 (f) 917,627 0.89 (e) – 1.31 89.9 2024 10.33 0.16 2.51 2.67 (0.14) (0.25) (0.39) 12.61 25.94 907,192 0.94 (e) – 1.29 73.9 2023 11.87 0.13 (0.43) (0.30) (0.10) (1.14) (1.24) 10.33 (2.55) 935,878 0.93 (e) – 1.19 65.2 2022 14.50 0.09 (0.77) (0.68) (0.10) (1.85) (1.95) 11.87 (5.07) 895,326 0.93 (e) – 0.76 55.4 2021 8.93 0.10 5.56 5.66 (0.09) – (0.09) 14.50 63.66 1,150,438 0.93 (e) – 0.72 87.5 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. (f) 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. 119

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![null120.jpg](ck0000898745-20260227_g183.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return 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 SMALLCAP VALUE FUND II Class J shares 2025 $12.06 $0.11 $0.46 $0.57 ($0.14) ($1.12) ($1.26) $11.37 5.13%(b) $18,883 1.21%(c) 1.23%(d) 0.99% 89.9% 2024 9.88 0.12 2.41 2.53 (0.10) (0.25) (0.35) 12.06 25.67 (b) 23,814 1.21 (c) 1.25 (d) 1.01 73.9 2023 11.41 0.09 (0.42) (0.33) (0.06) (1.14) (1.20) 9.88 (2.93) (b) 19,813 1.31 (c) 1.35 (d) 0.81 65.2 2022 14.02 0.05 (0.75) (0.70) (0.06) (1.85) (1.91) 11.41 (5.41) (b) 20,790 1.28 (c) 1.32 (d) 0.40 55.4 2021 8.63 0.04 5.39 5.43 (0.04) – (0.04) 14.02 63.03 (b) 23,564 1.29 (c) 1.33 (d) 0.35 87.5 Institutional shares 2025 12.62 0.15 0.48 0.63 (0.16) (1.12) (1.28) 11.97 5.47 146,676 0.94 (e) – 1.28 89.9 2024 10.34 0.16 2.50 2.66 (0.13) (0.25) (0.38) 12.62 25.89 171,914 0.96 (e) – 1.30 73.9 2023 11.88 0.13 (0.44) (0.31) (0.09) (1.14) (1.23) 10.34 (2.58) 193,833 0.96 (e) – 1.18 65.2 2022 14.50 0.09 (0.77) (0.68) (0.09) (1.85) (1.94) 11.88 (5.02) 185,308 0.96 (e) – 0.73 55.4 2021 8.94 0.09 5.56 5.65 (0.09) – (0.09) 14.50 63.45 204,526 0.96 (e) – 0.70 87.5 R-3 shares 2025 11.75 0.08 0.45 0.53 (0.11) (1.12) (1.23) 11.05 4.92 5,422 1.45 (e) – 0.75 89.9 2024 9.65 0.08 2.35 2.43 (0.08) (0.25) (0.33) 11.75 25.27 5,036 1.49 (e) – 0.75 73.9 2023 11.17 0.07 (0.41) (0.34) (0.04) (1.14) (1.18) 9.65 (3.12) 4,937 1.50 (e) – 0.63 65.2 2022 13.76 0.02 (0.73) (0.71) (0.03) (1.85) (1.88) 11.17 (5.59) 5,063 1.49 (e) – 0.19 55.4 2021 8.48 0.02 5.29 5.31 (0.03) – (0.03) 13.76 62.67 6,089 1.49 (e) – 0.14 87.5 R-5 shares 2025 12.28 0.12 0.46 0.58 (0.14) (1.12) (1.26) 11.60 5.18 6,748 1.14 (e) – 1.08 89.9 2024 10.06 0.13 2.44 2.57 (0.10) (0.25) (0.35) 12.28 25.69 6,507 1.18 (e) – 1.10 73.9 2023 11.59 0.10 (0.42) (0.32) (0.07) (1.14) (1.21) 10.06 (2.82) 10,587 1.19 (e) – 0.94 65.2 2022 14.20 0.06 (0.75) (0.69) (0.07) (1.85) (1.92) 11.59 (5.28) 13,339 1.18 (e) – 0.51 55.4 2021 8.75 0.06 5.45 5.51 (0.06) – (0.06) 14.20 63.22 16,754 1.18 (e) – 0.49 87.5 R-6 shares 2025 12.61 0.15 0.48 0.63 (0.16) (1.12) (1.28) 11.96 5.59 (f) 917,627 0.89 (e) – 1.31 89.9 2024 10.33 0.16 2.51 2.67 (0.14) (0.25) (0.39) 12.61 25.94 907,192 0.94 (e) – 1.29 73.9 2023 11.87 0.13 (0.43) (0.30) (0.10) (1.14) (1.24) 10.33 (2.55) 935,878 0.93 (e) – 1.19 65.2 2022 14.50 0.09 (0.77) (0.68) (0.10) (1.85) (1.95) 11.87 (5.07) 895,326 0.93 (e) – 0.76 55.4 2021 8.93 0.10 5.56 5.66 (0.09) – (0.09) 14.50 63.66 1,150,438 0.93 (e) – 0.72 87.5 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Subject to Manager's contractual expense limit and/or Distributor's voluntary distribution fee limit. (d) Excludes expense reimbursement from Manager and/or Distributor. (e) Subject to Manager's contractual expense limit. (f) 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. 120

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![null121.jpg](ck0000898745-20260227_g184.jpg)

Financial Highlights Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return Net Assets, End of Period (in thousands) Ratio of Expenses to Average Net Assets Ratio of Expenses to Average Net Assets (Excluding Interest Expense and Fees) Ratio of Net Investment Income to Average Net Assets Portfolio Turnover Rate TAX-EXEMPT BOND FUND Class A shares 2025 $6.71 $0.24 ($0.01) $0.23 ($0.25) ($0.25) $6.69 3.60%(b) $228,582 0.92% 0.73%(c) 3.65% 53.2% 2024 6.34 0.23 0.37 0.60 (0.23) (0.23) 6.71 9.54 (b) 257,775 0.87 0.72 (c) 3.38 42.9 2023 6.31 0.21 0.03 0.24 (0.21) (0.21) 6.34 3.64 (b) 261,663 0.85 0.73 (c) 3.22 36.9 2022 7.61 0.17 (1.30) (1.13) (0.17) (0.17) 6.31 (14.99) (b) 299,054 0.77 0.73 (c) 2.44 59.3 2021 7.40 0.17 0.21 0.38 (0.17) (0.17) 7.61 5.19 (b) 417,381 0.79 0.76 (c) 2.18 24.8 Class C shares 2025 6.74 0.18 (0.01) 0.17 (0.19) (0.19) 6.72 2.65 (b) 10,791 1.82 1.63 (c) 2.73 53.2 2024 6.36 0.17 0.38 0.55 (0.17) (0.17) 6.74 8.70 (b) 14,303 1.77 1.62 (c) 2.46 42.9 2023 6.33 0.16 0.02 0.18 (0.15) (0.15) 6.36 2.71 (b) 16,673 1.74 (d) 1.62 (c),(d) 2.33 36.9 2022 7.63 0.11 (1.30) (1.19) (0.11) (0.11) 6.33 (15.67) (b) 22,134 1.61 (d) 1.57 (c),(d) 1.59 59.3 2021 7.43 0.11 0.20 0.31 (0.11) (0.11) 7.63 4.17 (b) 35,338 1.61 (d) 1.58 (c),(d) 1.37 24.8 Institutional shares 2025 6.72 0.26 (0.01) 0.25 (0.27) (0.27) 6.70 3.88 255,757 0.64 (d) 0.45 (c),(d) 3.92 53.2 2024 6.35 0.25 0.37 0.62 (0.25) (0.25) 6.72 9.82 295,345 0.60 (d) 0.45 (c),(d) 3.66 42.9 2023 6.31 0.23 0.03 0.26 (0.22) (0.22) 6.35 4.09 266,213 0.57 (d) 0.45 (c),(d) 3.51 36.9 2022 7.61 0.19 (1.30) (1.11) (0.19) (0.19) 6.31 (14.88) (e) 278,642 0.50 (d) 0.46 (c),(d) 2.72 59.3 2021 7.41 0.19 0.20 0.39 (0.19) (0.19) 7.61 5.44 (e) 345,082 0.54 (d) 0.51 (c),(d) 2.42 24.8 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Excludes interest expense and fees paid through inverse floater agreements. See "Operating Policies" in notes to financial statements. (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. 121

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![null122.jpg](ck0000898745-20260227_g185.jpg)

Financial Highlights (Continued) Principal Funds, Inc. Selected data for a share of Capital Stock outstanding throughout each year ended October 31 (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 Total Return Net Assets, End of Period (in thousands) Ratio of Expenses to Average Net Assets Ratio of Expenses to Average Net Assets (Excluding Interest Expense and Fees) Ratio of Net Investment Income to Average Net Assets Portfolio Turnover Rate TAX-EXEMPT BOND FUND Class A shares 2025 $6.71 $0.24 ($0.01) $0.23 ($0.25) ($0.25) $6.69 3.60%(b) $228,582 0.92% 0.73%(c) 3.65% 53.2% 2024 6.34 0.23 0.37 0.60 (0.23) (0.23) 6.71 9.54 (b) 257,775 0.87 0.72 (c) 3.38 42.9 2023 6.31 0.21 0.03 0.24 (0.21) (0.21) 6.34 3.64 (b) 261,663 0.85 0.73 (c) 3.22 36.9 2022 7.61 0.17 (1.30) (1.13) (0.17) (0.17) 6.31 (14.99) (b) 299,054 0.77 0.73 (c) 2.44 59.3 2021 7.40 0.17 0.21 0.38 (0.17) (0.17) 7.61 5.19 (b) 417,381 0.79 0.76 (c) 2.18 24.8 Class C shares 2025 6.74 0.18 (0.01) 0.17 (0.19) (0.19) 6.72 2.65 (b) 10,791 1.82 1.63 (c) 2.73 53.2 2024 6.36 0.17 0.38 0.55 (0.17) (0.17) 6.74 8.70 (b) 14,303 1.77 1.62 (c) 2.46 42.9 2023 6.33 0.16 0.02 0.18 (0.15) (0.15) 6.36 2.71 (b) 16,673 1.74 (d) 1.62 (c),(d) 2.33 36.9 2022 7.63 0.11 (1.30) (1.19) (0.11) (0.11) 6.33 (15.67) (b) 22,134 1.61 (d) 1.57 (c),(d) 1.59 59.3 2021 7.43 0.11 0.20 0.31 (0.11) (0.11) 7.63 4.17 (b) 35,338 1.61 (d) 1.58 (c),(d) 1.37 24.8 Institutional shares 2025 6.72 0.26 (0.01) 0.25 (0.27) (0.27) 6.70 3.88 255,757 0.64 (d) 0.45 (c),(d) 3.92 53.2 2024 6.35 0.25 0.37 0.62 (0.25) (0.25) 6.72 9.82 295,345 0.60 (d) 0.45 (c),(d) 3.66 42.9 2023 6.31 0.23 0.03 0.26 (0.22) (0.22) 6.35 4.09 266,213 0.57 (d) 0.45 (c),(d) 3.51 36.9 2022 7.61 0.19 (1.30) (1.11) (0.19) (0.19) 6.31 (14.88) (e) 278,642 0.50 (d) 0.46 (c),(d) 2.72 59.3 2021 7.41 0.19 0.20 0.39 (0.19) (0.19) 7.61 5.44 (e) 345,082 0.54 (d) 0.51 (c),(d) 2.42 24.8 (a) Calculated based on average shares outstanding during the period. (b) Total return is calculated without the front-end sales charge or contingent deferred sales charge, if applicable. (c) Excludes interest expense and fees paid through inverse floater agreements. See "Operating Policies" in notes to financial statements. (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. 122

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**ADDITIONAL INFORMATION**

Additional information about the Funds is available in the SAI dated March 1, 2026, which is incorporated by reference into this Prospectus. Additional information about each Fund's investments will be available in the Registrant's <u>[Annual Report](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000898745/000089874525000918/primary-document.htm)[(](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000898745/000089874525000918/primary-document.htm)[Part 1](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000898745/000089874525000918/primary-document.htm)[)](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000898745/000089874525000918/primary-document.htm)</u> (<u>[Part 2](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000898745/000089874525000919/primary-document.htm)</u>) (<u>[Part 3](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000898745/000089874525000920/primary-document.htm)</u>) and <u>[Semi-Annual Report](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000898745/000089874525000312/primary-document.htm)</u> to Shareholders filed on Form N-CSR. In the Registrant's Annual Report, you will find a discussion of the market conditions and investment strategies that significantly affected each Fund's performance during the last fiscal year. In Form N-CSR, you will find the Registrant's annual and semi-annual financial statements. The SAI and the Registrant's Annual and Semi-Annual Reports to Shareholders, and other information such as Fund financial statements, are available and can be obtained free of charge by writing Principal Funds, P.O. Box 219971, Kansas City, MO 64121-9971. In addition, the Registrant makes its SAI and Annual and Semi-Annual Reports available, free of charge, on www.PrincipalAM.com/Prospectuses. To request this and other information about the Funds and to make shareholder inquiries, telephone 1-800-222-5852.

Reports and other information about the Registrant are available on the EDGAR Database on the SEC's internet site at www.sec.gov. Copies of this information may be obtained, upon payment of a duplicating fee, by electronic request at the following e-mail address: publicinfo@sec.gov.

The Registrant has entered into a management agreement with PGI. The Registrant and/or PGI, on behalf of the Funds, enter into contractual arrangements with various parties, including, among others, the Funds' sub-advisors, distributor, transfer agent, and custodian, who provide services to the Funds. These arrangements are between the Registrant and/or PGI and the applicable service provider. Shareholders are not parties to, or intended to be third-party beneficiaries of, any of these arrangements. Such arrangements are not intended to create in any individual shareholder or group of shareholders any right, including the right to enforce such arrangements against the service providers or to seek any remedy thereunder against PGI or any other service provider, either directly or on behalf of the Registrant or any Fund.

This Prospectus provides information that you should consider in determining whether to purchase shares of a Fund. This Prospectus, the SAI, or the contracts that are exhibits to the Registrant's Registration Statement are not intended to give rise to any agreement or contract between the Registrant and/or any Fund and any investor, or give rise to any contract or other rights in any individual shareholder, group of shareholders, or other person other than any rights conferred explicitly by federal or state securities laws that may not be waived.

Shares of the Funds are not deposits or obligations of, or guaranteed or endorsed by, Principal Bank or any other financial institution, nor are shares of the Funds federally insured by the Federal Deposit Insurance Corporation, the Federal Reserve Board, or any other agency.

Principal Funds, Inc. SEC File 811-07572

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**PRINCIPAL FUNDS, INC.** 

**("PFI" or the "Registrant")**

**Statement of Additional Information**

Dated March 1, 2026

This Statement of Additional Information ("SAI") is not a prospectus. It contains information in addition to the information in the Registrant's Prospectus. The Prospectus, which may be amended from time to time, contains the basic information you should know before investing in a Fund. You should read this SAI together with the Prospectus dated March 1, 2026.

**Incorporation by Reference:** Certain information included in the Registrant's Annual Report to Shareholders and Form N-CSR (<u>[Part 1](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000898745/000089874525000918/primary-document.htm)</u>) (<u>[Part 2](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000898745/000089874525000919/primary-document.htm)</u>) (<u>[Part 3](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000898745/000089874525000920/primary-document.htm)</u>) for the fiscal year ended October 31, 2025 is hereby incorporated by reference into and is legally part of this SAI.

For a free copy of the current Prospectus, Semi-Annual Report, or Annual Report, call 1-800-222-5852 or write:

Principal Funds

P.O. Box 219971

Kansas City, MO 64121-9971

The Prospectus may be viewed at www.PrincipalAM.com/Prospectuses.

*The proposed mergers of the Principal LifeTime 2015 Fund and Principal LifeTime Hybrid 2015 Fund into the Principal LifeTime Strategic Income Fund and Principal LifeTime Hybrid Income Fund, respectively, are expected to occur on or about June 12, 2026 (the "Merger Date"). The Fund's officers, however, have the discretion to change this date. On the Merger Date, delete all references to the Principal LifeTime 2015 Fund and Principal LifeTime Hybrid 2015 Fund from this SAI.* 

The ticker symbols for series and share classes begin on the next page.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** |
| **Fund/Portfolio** | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| California Municipal | SRCMX | SRCCX |  | PCMFX |  |  |  |
| Core Fixed Income | CMPIX |  | PIOJX | PIOIX | PIOOX | PIOQX | PICNX |
| Core Plus Bond | PRBDX |  | PBMJX | PMSIX | PBMMX | PBMPX |  |
| Diversified Income | PGBAX | PGDCX |  | PGDIX |  |  | PGBLX |
| Diversified International | PRWLX |  | PIIJX | PIIIX | PINRX | PINPX | PDIFX |
| Equity Income | PQIAX | PEUCX | PEIJX | PEIIX | PEIOX | PEIQX |  |
| Finisterre Emerging Markets Total Return Bond |  |  |  | PFUMX |  |  |  |
| Global Emerging Markets | PRIAX |  | PIEJX | PIEIX | PEAPX | PEPSX | PIIMX |
| Global Real Estate Securities | POSAX |  |  | POSIX | PGRKX | PGRUX | PGRSX |
| Government & High Quality Bond | CMPGX |  | PMRJX | PMRIX | PRCMX | PMREX |  |
| Government Money Market |  |  |  | PGVXX |  |  | PGWXX |
| High Yield | CPHYX | CCHIX |  | PHYTX |  |  | PHYFX |
| Inflation Protection |  |  | PIPJX | PIPIX | PIFPX | PBPPX |  |
| International Bond |  |  |  |  |  |  | PIBRX |
| International Equity |  |  |  | PINIX | PRPPX | PTPPX | PIIDX |
| LargeCap Growth I | PLGAX |  | PLGJX | PLGIX | PPUMX | PPUPX | PLCGX |
| LargeCap S&P 500 Index | PLSAX |  | PSPJX | PLFIX | PLFMX | PLFPX |  |
| LargeCap Value III |  |  | PLVJX | PLVIX | PPSFX | PPSRX |  |
| MidCap | PEMGX | PMBCX | PMBJX | PCBIX | PMBMX | PMBPX | PMAQX |
| MidCap S&P 400 Index |  |  | PMFJX | MPSIX | PMFMX | PMFPX | PMAPX |
| MidCap Value I | PCMVX |  | PVEJX | PVMIX | PMPRX | PABVX | PCMSX |
| Money Market | PCSXX |  | PMJXX |  |  |  |  |
| Overseas |  |  |  | PINZX | PINTX |  |  |
| Principal Capital Appreciation | CMNWX |  |  | PWCIX | PCAOX | PCAQX |  |
| Principal LifeTime Strategic Income | PALTX |  | PLSJX | PLSIX | PLSMX | PLSPX |  |
| Principal LifeTime 2015 |  |  |  | LTINX | LTAPX | LTPFX |  |
| Principal LifeTime 2020 | PTBAX |  | PLFJX | PLWIX | PTBMX | PTBPX |  |
| Principal LifeTime 2025 |  |  |  | LTSTX | LTVPX | LTPDX |  |
| Principal LifeTime 2030 | PTCAX |  | PLTJX | PMTIX | PTCMX | PTCPX |  |
| Principal LifeTime 2035 |  |  |  | LTIUX | LTAOX | LTPEX |  |
| Principal LifeTime 2040 | PTDAX |  | PTDJX | PTDIX | PTDMX | PTDPX |  |
| Principal LifeTime 2045 |  |  |  | LTRIX | LTRVX | LTRDX |  |
| Principal LifeTime 2050 | PPEAX |  | PFLJX | PPLIX | PTERX | PTEFX |  |
| Principal LifeTime 2055 |  |  |  | LTFIX | LTFDX | LTFPX |  |
| Principal LifeTime 2060 |  |  | PLTAX | PLTZX | PLTCX | PLTOX |  |
| Principal LifeTime 2065 |  |  |  | PLJIX | PLJCX | PLJEX |  |
| Principal LifeTime 2070 |  |  | PLTLX | PLTGX | PLTDX | PLTFX |  |
| Principal LifeTime Hybrid Income |  |  | PHJFX | PHTFX |  |  | PLTYX |
| Principal LifeTime Hybrid 2015 |  |  | PHJMX | PHTMX |  |  | PLRRX |
| Principal LifeTime Hybrid 2020 |  |  | PHJTX | PHTTX |  |  | PLTTX |
| Principal LifeTime Hybrid 2025 |  |  | PHJQX | PHTQX |  |  | PLFTX |
| Principal LifeTime Hybrid 2030 |  |  | PHJNX | PHTNX |  |  | PLZTX |
| Principal LifeTime Hybrid 2035 |  |  | PHJJX | PHTJX |  |  | PLRTX |
| Principal LifeTime Hybrid 2040 |  |  | PHJEX | PLTQX |  |  | PLMTX |
| Principal LifeTime Hybrid 2045 |  |  | PHJYX | PHTYX |  |  | PLNTX |
| Principal LifeTime Hybrid 2050 |  |  | PHJUX | PHTUX |  |  | PLJTX |
| Principal LifeTime Hybrid 2055 |  |  | PHJBX | PLTNX |  |  | PLHTX |
| Principal LifeTime Hybrid 2060 |  |  | PHJGX | PLTHX |  |  | PLKTX |
| Principal LifeTime Hybrid 2065 |  |  | PHJDX | PLHHX |  |  | PLHRX |
| Principal LifeTime Hybrid 2070 |  |  | PLKJX | PLKSX |  |  | PLKRX |

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** | **Ticker Symbols by Share Class** |
| **Fund/Portfolio** | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Real Estate Securities | PRRAX | PRCEX | PREJX | PIREX | PRERX | PREPX | PFRSX |
| SAM Balanced | SABPX | SCBPX | PSAJX | PSBIX | PBAPX | PSBFX |  |
| SAM Conservative Balanced | SAIPX | SCIPX | PCBJX | PCCIX | PCBPX | PCBFX |  |
| SAM Conservative Growth | SAGPX | SCGPX | PCGJX | PCWIX | PCGPX | PCWPX |  |
| SAM Flexible Income | SAUPX | SCUPX | PFIJX | PIFIX | PFIPX | PFIFX |  |
| SAM Strategic Growth | SACAX | SWHCX | PSWJX | PSWIX | PSGPX | PSGFX |  |
| Short-Term Income | SRHQX | STCCX | PSJIX | PSHIX | PSIOX | PSIQX |  |
| SmallCap | PLLAX |  | PSBJX | PSLIX | PSBMX | PSBPX | PSMLX |
| SmallCap Growth I |  |  | PSIJX | PGRTX | PPNMX | PPNPX | PCSMX |
| SmallCap S&P 600 Index |  |  | PSSJX | PSSIX | PSSMX | PSSPX | PSPIX |
| SmallCap Value II |  |  | PSMJX | PPVIX | PJARX | PLARX | PSMVX |
| Tax-Exempt Bond | PTEAX | PTBCX |  | PITEX |  |  |  |

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| | |
|:---|:---|
| **TABLE OF CONTENTS** | **TABLE OF CONTENTS** |
| | **<u>Page</u>** |
| HISTORY OF THE FUNDS | &nbsp;&nbsp;&nbsp;<u>[5](#i2640ccc4af26459e9b752f05c4522470_7)</u> |
| DESCRIPTION OF THE FUNDS' INVESTMENTS AND RISKS | &nbsp;&nbsp;&nbsp;<u>[7](#i2640ccc4af26459e9b752f05c4522470_13)</u> |
| LEADERSHIP STRUCTURE AND BOARD | &nbsp;&nbsp;&nbsp;<u>[45](#i2640ccc4af26459e9b752f05c4522470_16)</u> |
| INVESTMENT ADVISORY AND OTHER SERVICES | &nbsp;&nbsp;&nbsp;<u>[54](#i2640ccc4af26459e9b752f05c4522470_19)</u> |
| MULTIPLE CLASS STRUCTURE | &nbsp;&nbsp;&nbsp;<u>[69](#i2640ccc4af26459e9b752f05c4522470_10)</u> |
| INTERMEDIARY COMPENSATION | &nbsp;&nbsp;&nbsp;<u>[70](#i2640ccc4af26459e9b752f05c4522470_22)</u> |
| BROKERAGE ALLOCATION AND OTHER PRACTICES | &nbsp;&nbsp;&nbsp;<u>[72](#i2640ccc4af26459e9b752f05c4522470_25)</u> |
| PURCHASE AND REDEMPTION OF SHARES | &nbsp;&nbsp;&nbsp;<u>[78](#i2640ccc4af26459e9b752f05c4522470_28)</u> |
| GOVERNMENT MONEY MARKET AND MONEY MARKET FUNDS MATERIAL EVENTS | &nbsp;&nbsp;&nbsp;<u>[82](#i2640ccc4af26459e9b752f05c4522470_31)</u> |
| PRICING OF FUND SHARES | &nbsp;&nbsp;&nbsp;<u>[82](#i2640ccc4af26459e9b752f05c4522470_34)</u> |
| TAX CONSIDERATIONS | &nbsp;&nbsp;&nbsp;<u>[84](#i2640ccc4af26459e9b752f05c4522470_37)</u> |
| PORTFOLIO HOLDINGS DISCLOSURE | &nbsp;&nbsp;&nbsp;<u>[85](#i2640ccc4af26459e9b752f05c4522470_40)</u> |
| REFLOW LIQUIDITY PROGRAM | &nbsp;&nbsp;&nbsp;<u>[87](#i2640ccc4af26459e9b752f05c4522470_1147)</u> |
| PROXY VOTING POLICIES AND PROCEDURES | &nbsp;&nbsp;&nbsp;<u>[87](#i2640ccc4af26459e9b752f05c4522470_43)</u> |
| FINANCIAL STATEMENTS | &nbsp;&nbsp;&nbsp;<u>[88](#i2640ccc4af26459e9b752f05c4522470_46)</u> |
| INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | &nbsp;&nbsp;&nbsp;<u>[88](#i2640ccc4af26459e9b752f05c4522470_49)</u> |
| GENERAL INFORMATION | &nbsp;&nbsp;&nbsp;<u>[88](#i2640ccc4af26459e9b752f05c4522470_52)</u> |
| CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES | &nbsp;&nbsp;&nbsp;<u>[89](#i2640ccc4af26459e9b752f05c4522470_55)</u> |
| PORTFOLIO MANAGER DISCLOSURE | &nbsp;&nbsp;&nbsp;<u>[167](#i2640ccc4af26459e9b752f05c4522470_82)</u> |
| APPENDIX A — DESCRIPTION OF BOND RATINGS | &nbsp;&nbsp;&nbsp;<u>[184](#i2640ccc4af26459e9b752f05c4522470_115)</u> |
| APPENDIX B — PRICE MAKE UP SHEET | &nbsp;&nbsp;&nbsp;<u>[187](#i2640ccc4af26459e9b752f05c4522470_118)</u> |
| APPENDIX C — PROXY VOTING POLICIES | &nbsp;&nbsp;&nbsp;<u>[190](#i2640ccc4af26459e9b752f05c4522470_121)</u> |

---

------

**HISTORY OF THE FUNDS**

Principal Funds, Inc. ("PFI" or the "Registrant"), a Maryland corporation, was organized as Principal Special Markets Fund, Inc. on January 28, 1993. The Registrant changed its name to Principal Investors Fund, Inc. effective September 14, 2000 and to Principal Funds, Inc. effective June 13, 2008.

On January 12, 2007, the Registrant acquired WM Trust I, WM Trust II, and WM Strategic Asset Management Portfolios, LLC.

Classes offered by each series of the Registrant (each, a "Fund" and, together, the "Funds") are shown in the following table.

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| **Fund/Portfolio** | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| California Municipal | X | X |  | X |  |  |  |
| Core Fixed Income | X |  | X | X | X | X | X |
| Core Plus Bond | X |  | X | X | X | X |  |
| Diversified Income | X | X |  | X |  |  | X |
| Diversified International | X |  | X | X | X | X | X |
| Equity Income | X | X | X | X | X | X |  |
| Finisterre Emerging Markets Total Return Bond |  |  |  | X |  |  |  |
| Global Emerging Markets | X |  | X | X | X | X | X |
| Global Real Estate Securities | X |  |  | X | X | X | X |
| Government & High Quality Bond | X |  | X | X | X | X |  |
| Government Money Market |  |  |  | X |  |  | X |
| High Yield | X | X |  | X |  |  | X |
| Inflation Protection |  |  | X | X | X | X |  |
| International Bond |  |  |  |  |  |  | X |
| International Equity |  |  |  | X | X | X | X |
| LargeCap Growth I | X |  | X | X | X | X | X |
| LargeCap S&P 500 Index | X |  | X | X | X | X |  |
| LargeCap Value III |  |  | X | X | X | X |  |
| MidCap | X | X | X | X | X | X | X |
| MidCap S&P 400 Index |  |  | X | X | X | X | X |
| MidCap Value I | X |  | X | X | X | X | X |
| Money Market | X |  | X |  |  |  |  |
| Overseas |  |  |  | X | X |  |  |
| Principal Capital Appreciation | X |  |  | X | X | X |  |
| Principal LifeTime Strategic Income | X |  | X | X | X | X |  |
| Principal LifeTime 2015 |  |  |  | X | X | X |  |
| Principal LifeTime 2020 | X |  | X | X | X | X |  |
| Principal LifeTime 2025 |  |  |  | X | X | X |  |
| Principal LifeTime 2030 | X |  | X | X | X | X |  |
| Principal LifeTime 2035 |  |  |  | X | X | X |  |
| Principal LifeTime 2040 | X |  | X | X | X | X |  |
| Principal LifeTime 2045 |  |  |  | X | X | X |  |
| Principal LifeTime 2050 | X |  | X | X | X | X |  |
| Principal LifeTime 2055 |  |  |  | X | X | X |  |
| Principal LifeTime 2060 |  |  | X | X | X | X |  |
| Principal LifeTime 2065 |  |  |  | X | X | X |  |
| Principal LifeTime 2070 |  |  | X | X | X | X |  |
| Principal LifeTime Hybrid Income |  |  | X | X |  |  | X |
| Principal LifeTime Hybrid 2015 |  |  | X | X |  |  | X |
| Principal LifeTime Hybrid 2020 |  |  | X | X |  |  | X |
| Principal LifeTime Hybrid 2025 |  |  | X | X |  |  | X |

---

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| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** | **Share Class** |
| **Fund/Portfolio** | **A** | **C** | **J** | **Inst.** | **R-3** | **R-5** | **R-6** |
| Principal LifeTime Hybrid 2030 |  |  | X | X |  |  | X |
| Principal LifeTime Hybrid 2035 |  |  | X | X |  |  | X |
| Principal LifeTime Hybrid 2040 |  |  | X | X |  |  | X |
| Principal LifeTime Hybrid 2045 |  |  | X | X |  |  | X |
| Principal LifeTime Hybrid 2050 |  |  | X | X |  |  | X |
| Principal LifeTime Hybrid 2055 |  |  | X | X |  |  | X |
| Principal LifeTime Hybrid 2060 |  |  | X | X |  |  | X |
| Principal LifeTime Hybrid 2065 |  |  | X | X |  |  | X |
| Principal LifeTime Hybrid 2070 |  |  | X | X |  |  | X |
| Real Estate Securities | X | X | X | X | X | X | X |
| SAM Balanced | X | X | X | X | X | X |  |
| SAM Conservative Balanced | X | X | X | X | X | X |  |
| SAM Conservative Growth | X | X | X | X | X | X |  |
| SAM Flexible Income | X | X | X | X | X | X |  |
| SAM Strategic Growth | X | X | X | X | X | X |  |
| Short-Term Income | X | X | X | X | X | X |  |
| SmallCap  | X |  | X | X | X | X | X |
| SmallCap Growth I |  |  | X | X | X | X | X |
| SmallCap S&P 600 Index |  |  | X | X | X | X | X |
| SmallCap Value II |  |  | X | X | X | X | X |
| Tax-Exempt Bond | X | X |  | X |  |  |  |

---

Each class has different expenses. Because of these different expenses, the investment performance of the classes will vary. For more information, including your eligibility to purchase certain classes of shares, call Principal Funds at 1-800-222-5852.

Principal Global Investors, LLC ("PGI" or the "Manager") may recommend to the Board of Directors (the "Board"), and the Board may elect, to close certain Funds to new investors or close certain Funds to new and existing investors. PGI may make such a recommendation when a Fund approaches a size where additional investments in the Fund have the potential to adversely impact Fund performance and make it increasingly difficult to keep the Fund fully invested in a manner consistent with its investment objective. PGI may also recommend to the Board, and the Board may elect, to close certain share classes to new or new and existing investors.

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**DESCRIPTION OF THE FUNDS' INVESTMENTS AND RISKS**

The Registrant is a registered, open-end management investment company, commonly called a mutual fund. The Registrant consists of multiple investment portfolios, which are referred to as "Funds." Each Fund has its own investment objective, strategies, and portfolio management team. As described below, each Fund has adopted a fundamental policy regarding diversification, as that term is used in the Investment Company Act of 1940, as amended (the "1940 Act"), and as interpreted, modified, or otherwise permitted by regulatory authority having jurisdiction, from time to time.

**Fund Policies**

The investment objective, principal investment strategies, and principal risks of each Fund are described in the Prospectus. This SAI contains supplemental information about those strategies and risks and the types of securities that those managing the investments of each Fund can select. Additional information is also provided about other strategies that each Fund may use to try to achieve its objective.

The composition of each Fund and the techniques and strategies that those managing a Fund's investments may use in selecting securities will vary over time. A Fund is not required to use all of the investment techniques and strategies available to it in seeking its goals.

Unless otherwise indicated, with the exception of the percentage limitations on borrowing, the restrictions apply at the time transactions are entered into. Accordingly, any later increase or decrease beyond the specified limitation, resulting from market fluctuations or in a rating by a rating service, does not require elimination of any security from a Fund's portfolio.

The investment objective of each Fund and, except as described below as "fundamental restrictions," the investment strategies described in this SAI and the Prospectus are not fundamental and may be changed by the Board without shareholder approval.

With the exception of the diversification test required by the Internal Revenue Code, the Funds will not consider collateral held in connection with securities lending activities when applying any of the following fundamental restrictions or any other investment restriction set forth in the Prospectus or SAI.

**Fundamental Restrictions**

Except as specifically noted, each Fund has adopted the following fundamental restrictions. Each fundamental restriction is a matter of fundamental policy and may not be changed without a vote of a majority of the outstanding voting securities of the affected Fund, except as permitted by the 1940 Act or other governing statute and the rules thereunder, the U.S. Securities and Exchange Commission (the "SEC"), or other regulatory agency with authority over the Funds. The 1940 Act provides that "a vote of a majority of the outstanding voting securities" of a Fund means the affirmative vote of the lesser of (1) more than 50% of the outstanding Fund shares or (2) 67% or more of the Fund shares present at a meeting if more than 50% of the outstanding Fund shares are represented at the meeting in person or by proxy. Each share has one vote, with fractional shares voting proportionately. Shares of all classes of a Fund will vote together as a single class, except when otherwise required by law or as determined by the Board.

Each Fund:

1)may not issue senior securities, except as permitted under the 1940 Act, as amended, and as interpreted, modified, or otherwise permitted by regulatory authority having jurisdiction, from time to time.

2)has adopted a commodities policy, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The California Municipal Fund may not purchase or sell commodities, except as permitted under the 1940 Act, as amended, and as interpreted, modified, or otherwise permitted by regulatory authority having jurisdiction, from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The remaining Funds may not purchase or sell commodities, except as permitted by applicable law, regulation or regulatory authority having jurisdiction.

3)may not purchase or sell real estate, which term does not include securities of companies that deal in real estate or mortgages or investments secured by real estate or interests therein, except that each Fund reserves freedom of action to hold and to sell real estate acquired as a result of the Fund's ownership of securities.

4)may not borrow money, except as permitted under the 1940 Act, as amended, and as interpreted, modified, or otherwise permitted by regulatory authority having jurisdiction, from time to time.

5)may not make loans, except as permitted under the 1940 Act, as amended, and as interpreted, modified, or otherwise permitted by regulatory authority having jurisdiction, from time to time.

------

6)has adopted a policy regarding diversification, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The LargeCap Growth I and Real Estate Securities Funds have elected to be non-diversified.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)It is anticipated that the LargeCap S&P 500 Index Fund will be diversified in approximately the same proportions as the respective index that the Fund uses to measure its performance. Because the LargeCap S&P 500 Index Fund seeks to track the performance of the securities included in its respective index, it is possible that LargeCap S&P 500 Index Fund may change from diversified to non-diversified as a result of a change in relative market capitalization or weighting of one or more constituents of the Fund's index. In such an instance, shareholder approval will not be sought when the LargeCap S&P 500 Index Fund crosses from diversified to non-diversified status due solely to a change in the relative market capitalization or index weightings of one or more constituents of the LargeCap S&P 500 Index Fund's index.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)All other Funds have elected to be treated as a "diversified" investment company, as that term is used in the 1940 Act, as amended, and as interpreted, modified, or otherwise permitted by regulatory authority having jurisdiction, from time to time.

7)has adopted a concentration policy, as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Global Real Estate Securities and Real Estate Securities Funds will concentrate their investments in a particular industry or group of industries as described in the Prospectus.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The LargeCap S&P 500 Index, MidCap S&P 400 Index, and SmallCap S&P 600 Index Funds will not concentrate their investments in a particular industry or group of industries, except to the extent that their related Index is also so concentrated.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The remaining Funds may not concentrate, as that term is used in the 1940 Act, as amended, and as interpreted, modified, or otherwise permitted by regulatory authority having jurisdiction, from time to time, its investments in a particular industry or group of industries.

8)may not act as an underwriter of securities, except to the extent that the Fund may be deemed to be an underwriter in connection with the sale of securities held in its portfolio.

**Non-Fundamental Restrictions**

Except as specifically noted, each Fund has also adopted the following non-fundamental restrictions. Non-fundamental restrictions are not fundamental policies and may be changed without shareholder approval. It is contrary to each Fund's present policy to:

1)Invest more than 15% of its net assets in illiquid securities and in repurchase agreements maturing in more than seven days, except to the extent permitted by applicable law or regulatory authority having jurisdiction, from time to time; however:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Government Money Market and Money Market Funds may each not invest more than 5% of its net assets in illiquid securities and in repurchase agreements maturing in more than seven days, except to the extent permitted by applicable law or regulatory authority having jurisdiction, from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)International Equity Fund, the Principal LifeTime Funds, Principal LifeTime Hybrid Funds, and the Strategic Asset Management (SAM) Portfolios have not adopted this non-fundamental restriction.

2)Pledge, mortgage, or hypothecate its assets, except to secure permitted borrowings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)With respect to the Principal LifeTime Funds, Principal LifeTime Hybrid Funds, and Strategic Asset Management (SAM) Portfolios, the deposit of underlying securities and other assets in escrow and other collateral arrangements in connection with transactions that involve any future payment obligation, as permitted under the 1940 Act, as amended, and as interpreted, modified, or otherwise permitted by any regulatory authority having jurisdiction, from time to time, by the underlying funds are not deemed to be pledges, mortgages, hypothecations, or other encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)For all Funds, the deposit of underlying securities and other assets in escrow and other collateral arrangements in connection with transactions that involve any future payment obligation, as permitted under the 1940 Act, as amended, and as interpreted, modified, or otherwise permitted by any regulatory authority having jurisdiction, from time to time, are not deemed to be pledges, mortgages, hypothecations, or other encumbrances.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)International Equity Fund has not adopted this non-fundamental restriction.

3)Invest in companies for the purpose of exercising control or management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)International Equity Fund has not adopted this non-fundamental restriction.

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4)Invest more than 25% of its assets in foreign securities; however:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The High Yield Fund may not invest more than 35% of its assets in foreign securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Diversified Income, Diversified International, Finisterre Emerging Markets Total Return Bond, Global Emerging Markets, Global Real Estate Securities, International Bond Fund, Money Market, and Overseas Funds each may invest up to 100% of its assets in foreign securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The LargeCap S&P 500 Index, MidCap S&P 400 Index, and SmallCap S&P 600 Index Funds each may invest in foreign securities to the extent that the relevant index is so invested;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The California Municipal, Government & High Quality Bond, Government Money Market, and Tax-Exempt Bond Funds may not invest in foreign securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)International Equity Fund, the Principal LifeTime Funds, Principal LifeTime Hybrid Funds, and the Strategic Asset Management (SAM) Portfolios have not adopted this non-fundamental restriction.

5)Invest more than 5% of its total assets in real estate limited partnership interests.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Diversified Income, Global Real Estate Securities, International Equity, and Real Estate Securities Funds and the Principal LifeTime Funds, Principal LifeTime Hybrid Funds, and the Strategic Asset Management (SAM) Portfolios have not adopted this non-fundamental restriction.

6)Acquire securities of other investment companies in reliance on Section 12(d)(1)(F) or (G) of the 1940 Act, invest more than 10% of its total assets in securities of other investment companies, invest more than 5% of its total assets in the securities of any one investment company, or acquire more than 3% of the outstanding voting securities of any one investment company, except in connection with a merger, consolidation, or plan of reorganization and except as permitted by the 1940 Act, SEC Rules adopted under the 1940 Act, or exemptions granted by the SEC. The Fund may purchase securities of closed-end investment companies in the open market where no underwriter or dealer's commission or profit, other than a customary broker's commission, is involved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Principal LifeTime Funds, Principal LifeTime Hybrid Funds, and the Strategic Asset Management (SAM) Portfolios have not adopted this non-fundamental restriction.

International Equity Fund has adopted additional non-fundamental restrictions as noted below. The Fund:

1)may not purchase securities on margin, except that the Fund may obtain such short-term credits as are necessary for the clearance of transactions, and provided that margin payments in connection with futures contracts and options on futures contracts shall not constitute purchasing securities on margin.

2)may not purchase any security if, as a result, more than 15% of its net assets would be invested in securities that are deemed to be illiquid because they are subject to legal or contractual restrictions on resale or because they cannot be sold or disposed of in the ordinary course of business at approximately the prices at which they are valued.

**Non-Fundamental Policy - Rule 35d-1 under the 1940 Act - Investment Company Names** 

Except as specifically noted, each Fund has also adopted a non-fundamental policy, pursuant to SEC Rule 35d-1, which requires it, under normal circumstances, to invest at least 80% of its net assets, plus any borrowings for investment purposes, in the type of investments, industry, or geographic region (as described in the Prospectus) as suggested by the name of the Fund.

This policy applies at the time of purchase. A Fund will provide 60 days' notice to shareholders prior to implementing a change in this policy for the Fund. For purposes of this non-fundamental policy, each Fund tests market capitalization ranges monthly.

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For purposes of testing this requirement with respect to:

• <u>Forward foreign currency contracts and other investments that have economic characteristics similar to foreign currency</u>: the value of such contracts and investments may include the Fund's investments in cash and/or cash equivalents to the extent such cash and/or cash equivalents are maintained with respect to the Fund's exposure under its forward foreign currency contracts and similar investments.

• <u>Derivatives instruments</u>: each Fund will typically count the mark-to-market value of such derivatives. However, a Fund may use a derivative contract's notional value when it determines that notional value is an appropriate measure of the Fund's exposure to investments. For example, with respect to single-name equity swaps that are "fully paid" (equity swaps in which cash and/or cash equivalents are posted as collateral for the purpose of covering the full notional value of the swap), each Fund will count the value of such cash and/or cash equivalents.

In addition, if a Fund's policy is to invest in a certain type of security, the Fund may gain exposure to that type of investment through derivatives or other instruments.

• <u>Investments in underlying funds (including ETFs)</u>: each Fund will count all investments in an underlying fund toward the requirement as long as 80% of the value of such underlying fund's holdings focus on the particular type of investment suggested by the Fund name.

The California Municipal, Diversified Income, Diversified International, Inflation Protection, Principal Capital Appreciation, Short-Term Income, and Tax-Exempt Bond Funds, Principal LifeTime Funds, Principal LifeTime Hybrid Funds, and Strategic Asset Management (SAM) Portfolios have not adopted this non-fundamental policy.

The California Municipal Fund has adopted a fundamental policy that requires it, under normal circumstances, to invest at least 80% of its net assets in investments, the income from which is exempt from federal income tax and California state personal income tax or so that at least 80% of the income the Fund distributes will be exempt from federal income tax and California state personal income tax. The Fund also has adopted a non-fundamental policy that requires it, under normal circumstances, to invest at least 80% of its net assets in municipal obligations.

The Money Market Fund has also not adopted this non-fundamental policy as it is subject to Rule 2a-7 of the 1940 Act. The Government Money Market Fund has adopted a non-fundamental investment policy to invest under normal circumstances at least 80% of its nets assets, plus any borrowings for investment purposes, in government securities and repurchase agreements that are collateralized by government securities. As a government money market fund, the Government Money Market Fund must also meet a separate requirement, pursuant to Rule 2a-7 of the 1940 Act, to invest at least 99.5% of its total assets in cash, government securities, and or repurchase agreements that are collateralized fully.

The Tax-Exempt Bond Fund has also adopted a fundamental policy that requires it, under normal circumstances, to invest at least 80% of its net assets in investments, the income from which is exempt from federal income tax or so that at least 80% of the income the Fund distributes will be exempt from federal income tax.

**Investment Strategies and Risks Related to Borrowing and Senior Securities, Commodity-Related Investments, Industry Concentration, and Loans**

**Borrowing and Senior Securities**

Under the 1940 Act, a fund that borrows money is required to maintain continuous asset coverage (that is, total assets including borrowings, less liabilities exclusive of borrowings) of 300% of the amount borrowed, with an exception for borrowings not in excess of 5% of the fund's total assets made for temporary or emergency purposes. If a fund invests the proceeds of borrowing, borrowing will tend to exaggerate the effect on net asset value of any increase or decrease in the market value of a fund's portfolio. If a fund invests the proceeds of borrowing, money borrowed will be subject to interest costs that may or may not be recovered by earnings on the securities purchased. A fund also may be required to maintain minimum average balances in connection with a borrowing or to pay a commitment or other fee to maintain a line of credit; either of these requirements would increase the cost of borrowing over the stated interest rate.

**Commodity-Related Investments**

<u>All Funds Except the Finisterre Emerging Markets Total Return Bond Fund</u>

Under the 1940 Act, a fund's registration statement must recite the fund's policy with regard to investing in commodities. Each Fund may invest in commodities to the extent permitted by applicable law and under its fundamental and non-fundamental policies and restrictions. Pursuant to a claim for exclusion filed with the Commodity Futures Trading Commission ("CFTC") on behalf of each of the Funds under Rule 4.5, PGI is not deemed to be a "commodity pool operator" under the Commodity Exchange Act ("CEA") as it specifically relates to PGI's operations

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with respect to the Funds, and the Funds, therefore, are not considered regulated commodity pools and are not subject to registration or regulation under the CEA. The CFTC amended Rule 4.5 exclusions for certain otherwise regulated persons from the definition of the term "commodity pool operator." Rule 4.5 provides that an investment company does not meet the definition of "commodity pool operator" if its use of futures contracts, options on futures contracts, and swaps is sufficiently limited that the fund can fall within one of two exclusions set out in Rule 4.5. Each Fund intends to limit its use of futures contracts, options on futures contracts, and swaps to the degree necessary to fall within one of the two exclusions. If a Fund is unable to do so, it may incur expenses that are necessary to comply with the CEA and rules the CFTC has adopted under it.

<u>Finisterre Emerging Markets Total Return Bond Fund</u>

Based on its current investment strategies, the Finisterre Emerging Markets Total Return Bond Fund is deemed to be a "commodity pool" under the CEA, and PGI is considered a "commodity pool operator" with respect to the Fund. PGI is, therefore, subject to dual regulation by the SEC and the CFTC. The CFTC or the SEC could alter the regulatory requirements governing the use of commodity futures (which include futures on broad-based securities indexes, interest rate futures, and currency futures) or options on commodity futures or swaps transactions by investment companies, including this Fund.

**Industry Concentration**

Concentration" means a fund invests more than 25% of its net assets in a particular industry or group of industries. To monitor compliance with the policy regarding industry concentration, the Funds may use the industry classifications provided by Bloomberg, L.P., the Morgan Stanley Capital International (MSCI)/Standard & Poor's Global Industry Classification Standard (GICS), the Directory of Companies Filing Annual Reports with the SEC, or any other reasonable industry classification system.

• Each Fund interprets its policy with respect to concentration in a particular industry to apply only to direct investments in the securities of issuers in a particular industry. To the extent a Fund invests its assets in underlying investment companies, 25% or more of such Fund's total assets may be indirectly exposed to a particular industry or group of related industries through its investments in one or more underlying investment companies.

• For purposes of this restriction, government securities (such as treasury securities or mortgage-backed securities that are issued or guaranteed by the U.S. government, its agencies, or instrumentalities) are not subject to the Funds' industry concentration restrictions.

• Each Fund views its investments in tax-exempt municipal securities as not representing interests in any particular industry or group of industries. For information about municipal securities, see the Municipal Obligations section.

**Loans**

A Fund may not make loans to other persons, except (i) as permitted by the 1940 Act and the Rules and Regulations thereunder, or other successor law governing the regulation of registered investment companies, or interpretations or modifications thereof by the SEC, SEC Staff, or other authority of competent jurisdiction, or (ii) pursuant to exemptive or other relief or permission from the SEC, SEC Staff, or other authority of competent jurisdiction. Generally, this means the Funds are typically permitted to make loans but must take into account potential issues such as liquidity, valuation, and avoidance of impermissible transactions. Examples of permissible loans include (a) the lending of its portfolio securities, (b) the purchase of debt securities, loan participations, and/or engaging in direct corporate loans in accordance with the Fund's investment objective and policies, (c) the entry into a repurchase agreement (to the extent such entry is deemed to be a loan), and (d) loans to affiliated investment companies to the extent permitted by the 1940 Act or any exemptions therefrom that may be granted by the SEC.

**Other Investment Strategies and Risks**

**Artificial Intelligence** 

The capabilities and use of artificial intelligence ("AI") are rapidly increasing. AI may be utilized by the Funds' advisor and/or sub-advisors; by issuers in which the Funds invest; or by the Funds' service providers. AI technologies rely heavily on the collection and analysis of large amounts of data and complex algorithms, and it is possible that AI may produce inaccurate, biased, misleading, or incomplete outputs that could lead to adverse effects for the advisor and/or sub-advisor, issuers, and/or service providers using such technologies. These adverse effects may include reputational harm, legal liability, disruptions to business operations, and/or operational errors and investment losses by users of AI technologies, all of which could impact the Funds. AI also could face regulatory scrutiny in the future, which could limit its development and use. It is impossible to predict the full extent of risks that could impact the Funds from the development and use of AI.

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**Commodity Index-Linked Notes**

A commodity index-linked note is a type of structured note that is a derivative instrument. Over the long term, the returns on a fund's investments in commodity index-linked notes are expected to exhibit low or negative correlation with stocks and bonds, which means the prices of commodity-linked notes may move in a different direction than investments in traditional equity and debt securities. As an example, during periods of rising inflation, debt securities have historically tended to decrease in value and the prices of certain commodities, such as oil and metals, have historically tended to increase. The reverse may be true during "bull markets," when the value of traditional securities such as stocks and bonds is increasing. Under such economic conditions, a fund's investments in commodity index-linked notes may be expected not to perform as well as investments in traditional securities. There can be no assurance, however, that derivative instruments will perform in that manner in the future and, at certain times in the past, the price movements of commodity-linked investments have been parallel to debt and equity securities. If commodities prices move in tandem with the prices of financial assets, they may not provide overall portfolio diversification benefits.

**Convertible Securities**

A convertible security is a bond, debenture, note, preferred stock, or other security that entitles the holder to acquire common stock or other equity securities of the same or a different issuer. A convertible security generally entitles the holder to receive interest paid or accrued until the convertible security matures or is redeemed, converted or exchanged. Before conversion, convertible securities have characteristics similar to non-convertible debt or preferred securities, as applicable. Convertible securities rank senior to common stock in a corporation's capital structure and, therefore, generally entail less risk than the corporation's common stock, although the extent to which such risk is reduced depends in large measure upon the degree to which the convertible security sells above its value as a fixed income security. Convertible securities are subordinate in rank to any senior debt obligations of the issuer, and, therefore, an issuer's convertible securities entail more risk than its debt obligations. Convertible securities generally offer lower interest or dividend yields than non-convertible debt securities of similar credit quality because of the potential for capital appreciation. In addition, convertible securities are often lower-rated securities.

Because of the conversion feature, the price of the convertible security will normally fluctuate in some proportion to changes in the price of the underlying asset, and as such is subject to risks relating to the activities of the issuer and/or general market and economic conditions. The income component of a convertible security may tend to cushion the security against declines in the price of the underlying asset. However, the income component of convertible securities causes fluctuations based upon changes in interest rates and the credit quality of the issuer.

If the conversion value of a convertible security increases to a point that approximates or exceeds its investment value, the value of the security will be principally influenced by its conversion value. A convertible security will sell at a premium over its conversion value to the extent investors place value on the right to acquire the underlying common stock while holding an income-producing security.

A convertible security may be subject to redemption at the option of the issuer at a predetermined price. If a convertible security held by a fund is called for redemption, the fund would be required to permit the issuer to redeem the security and convert it to underlying common stock, or would sell the convertible security to a third party, which may have an adverse effect on the fund's ability to achieve its investment objective.

<u>Synthetic Convertibles</u>

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More flexibility is possible in the assembly of a synthetic convertible security than in the purchase of a convertible security. Although synthetic convertible securities may be selected where the two components are issued by a single issuer, thus making the synthetic convertible security similar to the traditional convertible security, the character of a synthetic convertible security allows the combination of components representing distinct issuers, when such a combination may better achieve a fund's investment objective. A synthetic convertible security also is a more flexible investment in that its two components may be purchased separately. For example, a fund may purchase a warrant for inclusion in a synthetic convertible security but temporarily hold short-term investments while postponing the purchase of a corresponding bond pending development of more favorable market conditions.

A holder of a synthetic convertible security faces the risk of a decline in the price of the security or the level of the index involved in the convertible component, causing a decline in the value of the security or instrument, such as a call option or warrant, purchased to create the synthetic convertible security. Should the price of the stock fall below the exercise price and remain there throughout the exercise period, the entire amount paid for the call option or warrant would be lost. Because a synthetic convertible security includes the income-producing component as well, the holder of a synthetic convertible security also faces the risk that interest rates will rise, causing a decline in the value of the income-producing instrument.

**Corporate Reorganizations**

Funds may invest in securities for which a tender or exchange offer has been made or announced and in securities of companies for which a merger, consolidation, liquidation, or reorganization proposal has been announced if, in the judgment of those managing the fund's investments, there is a reasonable prospect of capital appreciation significantly greater than the brokerage and other transaction expenses involved. The primary risk of such investments is that if the contemplated transaction is abandoned, revised, delayed, or becomes subject to unanticipated uncertainties, including, for example, new or revised laws or regulations, the market price of the securities may decline below the purchase price paid by a fund.

In general, securities that are the subject of such an offer or proposal sell at a premium to their historic market price immediately prior to the announcement of the offer or proposal. However, the increased market price of such securities may discount what the stated or appraised value of the security would be if the contemplated transaction were approved or consummated. Such investments may be advantageous when the discount: significantly overstates the risk of the contingencies involved; significantly undervalues the securities, assets, or cash to be received by shareholders of the prospective company as a result of the contemplated transaction; or fails adequately to recognize the possibility that the offer or proposal may be replaced or superseded by an offer or proposal of greater value. The evaluation of such contingencies requires unusually broad knowledge and experience on the part of those managing the fund's investments, which must appraise not only the value of the issuer and its component businesses, but also the financial resources and business motivation of the offer or proposal as well as the dynamics of the business climate when the offer or proposal is in process.

**Cyber Security Issues**

Each Fund and its service providers may be subject to cyber security risks. Those risks include, among others, theft, misuse, or corruption of data maintained online or digitally; denial of service attacks on websites; the loss or unauthorized release of confidential and proprietary business and personal information; operational disruption; or various other forms of cyber security breaches. Cyber-attacks against or security breakdowns of a Fund or its service providers may harm the Fund and its shareholders, potentially resulting in, among other things, financial losses, the inability to buy or sell Fund shares, the inability to calculate a Fund's NAV, violations of applicable privacy and other laws, regulatory fines, penalties, reputational damage, reimbursement or other compensation costs, and/or additional compliance and remediation costs. Geopolitical tensions may, from time to time, increase the scale and sophistication of cyber-attacks. Cyber security risks may also affect issuers of securities in which a Fund invests, potentially causing the Fund's investment in such issuers to lose value. Despite cyber security protocols and other risk management processes, there can be no guarantee that a Fund will avoid losses relating to cyber security risks or other information security breaches. The rapidly increasing capabilities and use of artificial intelligence (as discussed under "Artificial Intelligence"), including by bad actors, could exacerbate these risks.

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**Derivatives**

<u>Options on Securities and Securities Indices</u>

Funds may write (sell) and purchase call and put options on securities and on securities indices. Funds may engage in these transactions to hedge against a decline in the value of securities owned or an increase in the price of securities that the Fund plans to purchase, or to generate additional revenue.

• Exchange-Traded Options. An exchange-traded option may be closed out only on an exchange that generally provides a liquid secondary market for an option of the same series. If a liquid secondary market for an exchange-traded option does not exist, it might not be possible to effect a closing transaction with respect to a particular option, with the result that a Fund would have to exercise the option in order to consummate the transaction.

• Over the Counter ("OTC") Options. 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. With OTC options, a Fund is at risk that the other party to the transaction will default on its obligations or will not permit the Fund to terminate the transaction before its scheduled maturity. While a Fund will seek to enter into OTC options only with dealers who agree to or are expected to be capable of entering into closing transactions with a Fund, there can be no assurance that a Fund will be able to liquidate an OTC option at a favorable price at any time prior to its expiration. OTC options are not subject to the protections afforded purchasers of listed options by the Options Clearing Corporation or other clearing organizations.

• FLexible EXchange Options ("FLEX Options"). 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 (European-style options, which are exercisable only at the expiration date, versus American-style options, which are exercisable any time prior to the expiration date), and expiration dates, while achieving price discovery in competitive, transparent auction markets and avoiding the counterparty exposure of the OTC option positions.

There is no assurance that a liquid secondary market on an options exchange will exist for any particular option, or at any particular time, and for some options no secondary market on an exchange or elsewhere may exist. If a Fund is unable to close out a call option on securities that it has written before the option is exercised, the Fund may be required to purchase the optioned securities in order to satisfy its obligation under the option to deliver such securities. If the Fund is unable to effect a closing sale transaction with respect to options on securities that it has purchased, it would have to exercise the option in order to realize any profit and would incur transaction costs upon the purchase and sale of the underlying securities. The writing and purchasing of options is a highly specialized activity that involves investment techniques and risks different from those associated with ordinary portfolio securities transactions. Imperfect correlation between the options and securities markets may detract from the effectiveness of attempted hedging. Options transactions may result in significantly higher transaction costs and portfolio turnover for a Fund.

*Writing Call and Put Options*. When a Fund writes a call option, it gives the purchaser of the option the right to buy a specific security at a specified price at any time before the option expires. When a Fund writes a put option, it gives the purchaser of the option the right to sell to the Fund a specific security at a specified price at any time before the option expires. In both situations, the Fund receives a premium from the purchaser of the option.

The premium received by a Fund reflects, among other factors, the current market price of the underlying security, the relationship of the exercise price to the market price, the time period until the expiration of the option and interest rates. The premium generates additional income for the Fund if the option expires unexercised or is closed out at a profit. By writing a call, a Fund limits its opportunity to profit from any increase in the market value of the underlying security above the exercise price of the option, but it retains the risk of loss if the price of the security should decline. By writing a put, a Fund assumes the risk that it may have to purchase the underlying security at a price that may be higher than its market value at time of exercise.

A Fund usually owns the underlying security covered by any outstanding call option. With respect to an outstanding put option, a Fund deposits and maintains with its custodian or segregates on the Fund's records, cash, or other liquid assets with a value at least equal to the market value of the option that was written.

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Once a Fund has written an option, it may terminate its obligation before the option is exercised. The Fund executes a closing transaction by purchasing an option of the same series as the option previously written. The Fund has a gain or loss depending on whether the premium received when the option was written exceeds the closing purchase price plus related transaction costs.

*Purchasing Call and Put Options*. When a Fund purchases a call option, it receives, in return for the premium it pays, the right to buy from the writer of the option the underlying security at a specified price at any time before the option expires. A Fund purchases call options in anticipation of an increase in the market value of securities that it intends ultimately to buy. During the life of the call option, the Fund is able to buy the underlying security at the exercise price regardless of any increase in the market price of the underlying security. For a call option to result in a gain, the market price of the underlying security must exceed the sum of the exercise price, the premium paid, and transaction costs.

When a Fund purchases a put option, it receives, in return for the premium it pays, the right to sell to the writer of the option the underlying security at a specified price at any time before the option expires. A Fund purchases put options in anticipation of a decline in the market value of the underlying security. During the life of the put option, the Fund is able to sell the underlying security at the exercise price regardless of any decline in the market price of the underlying security. In order for a put option to result in a gain, the market price of the underlying security must decline, during the option period, below the exercise price enough to cover the premium and transaction costs.

Once a Fund purchases an option, it may close out its position by selling an option of the same series as the option previously purchased. The Fund has a gain or loss depending on whether the closing sale price exceeds the initial purchase price plus related transaction costs.

*Options on Securities Indices*. Each Fund may purchase and sell put and call options on any securities index based on securities in which the Fund may invest. Securities index options are designed to reflect price fluctuations in a group of securities or segment of the securities market rather than price fluctuations in a single security. Options on securities indices are similar to options on securities, except that the exercise of securities index options requires cash payments and does not involve the actual purchase or sale of securities. Each Fund engages in transactions in put and call options on securities indices for the same purposes as they engage in transactions in options on securities. When a Fund writes call options on securities indices, it holds in its portfolio underlying securities which, in the judgment of those managing the fund's investments, correlate closely with the securities index and which have a value at least equal to the aggregate amount of the securities index options.

*Index Warrants*. A Fund may purchase put warrants and call warrants whose values vary depending on the change in the value of one or more specified securities indices ("index warrants"). Index warrants are generally issued by banks or other financial institutions and give the holder the right, at any time during the term of the warrant, to receive upon exercise of the warrant a cash payment from the issuer based on the value of the underlying index at the time of exercise. In general, if the value of the underlying index rises above the exercise price of the index warrant, the holder of a call warrant will be entitled to receive a cash payment from the issuer upon exercise based on the difference between the value of the index and the exercise price of the warrant; if the value of the underlying index falls, the holder of a put warrant will be entitled to receive a cash payment from the issuer upon exercise based on the difference between the exercise price of the warrant and the value of the index. The holder of a warrant would not be entitled to any payments from the issuer at a time when, in the case of a call warrant, the exercise price is more than the value of the underlying index, or in the case of a put warrant, the exercise price is less than the value of the underlying index. If a Fund were not to exercise an index warrant prior to its expiration, then a Fund would lose the amount of the purchase price paid by it for the warrant. A Fund will normally use index warrants in a manner similar to its use of options on securities indices.

*Risks Associated with Option Transactions*. An option position may be closed out only on an exchange that provides a secondary market for an option of the same series. A Fund generally purchases or writes only those options for which there appears to be an active secondary market. However, there is no assurance that a liquid secondary market on an exchange exists for any particular option, or at any particular time. If a Fund is unable to effect closing sale transactions in options it has purchased, it has to exercise its options in order to realize any profit and may incur transaction costs upon the purchase or sale of underlying securities. If the Fund is unable to effect a closing purchase transaction for a covered option that it has written, it is not able to sell the underlying securities until the option expires or is exercised. A Fund's ability to terminate option positions established in the over-the-counter market may be more limited than a Fund's ability to terminate exchange-traded options and may also involve the risk that broker-dealers participating in such transactions might fail to meet their obligations.

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<u>Futures Contracts and Options on Futures Contracts</u>

Funds may purchase and sell futures contracts of many types, including for example, futures contracts covering indexes, financial instruments, and foreign currencies. Funds may purchase and sell financial futures contracts and options on those contracts. Financial futures contracts are commodities contracts based on financial instruments such as U.S. Treasury bonds or bills or on securities indices such as the S&P 500 Index. The Commodity Futures Trading Commission regulates futures contracts, options on futures contracts, and the commodity exchanges on which they are traded. Through the purchase and sale of futures contracts and related options, a Fund may seek to hedge against a decline in the value of securities owned by the Fund or an increase in the price of securities that the Fund plans to purchase. Funds may also purchase and sell futures contracts and related options to maintain cash reserves while simulating full investment in securities and to keep substantially all of its assets exposed to the market. Funds may enter into futures contracts and related options transactions both for hedging and non-hedging purposes.

*Futures Contracts*. Funds may purchase or sell a futures contract to gain exposure to a particular market asset without directly purchasing that asset. When a Fund sells a futures contract based on a financial instrument, the Fund is obligated to deliver that kind of instrument at a specified future time for a specified price. When a Fund purchases that kind of contract, it is obligated to take delivery of the instrument at a specified time and to pay the specified price. In most instances, these contracts are closed out by entering into an offsetting transaction before the settlement date. The Fund realizes a gain or loss depending on whether the price of an offsetting purchase plus transaction costs are less or more than the price of the initial sale or on whether the price of an offsetting sale is more or less than the price of the initial purchase plus transaction costs. Although the Fund usually liquidates futures contracts on financial instruments, by entering into an offsetting transaction before the settlement date, they may make or take delivery of the underlying securities when it appears economically advantageous to do so.

A futures contract based on a securities index provides for the purchase or sale of a group of securities at a specified future time for a specified price. These contracts do not require actual delivery of securities but result in a cash settlement. The amount of the settlement is based on the difference in value of the index between the time the contract was entered into and the time it is liquidated (at its expiration or earlier if it is closed out by entering into an offsetting transaction).

When a Fund purchases or sells a futures contract, it pays a commission to the futures commission merchant through which the Fund executes the transaction. When entering into a futures transaction, the Fund does not pay the execution price, as it does when it purchases a security, or a premium, as it does when it purchases an option. Instead, the Fund deposits an amount of cash or other liquid assets (generally about 5% of the futures contract amount) with its futures commission merchant. This amount is known as "initial margin." In contrast to the use of margin account to purchase securities, the Fund's deposit of initial margin does not constitute the borrowing of money to finance the transaction in the futures contract. The initial margin represents a good faith deposit that helps assure the Fund's performance of the transaction. The futures commission merchant returns the initial margin to the Fund upon termination of the futures contract if the Fund has satisfied all its contractual obligations.

Subsequent payments to and from the futures commission merchant, known as "variation margin," are required to be made on a daily basis as the price of the futures contract fluctuates, a process known as "marking to market." The fluctuations make the long or short positions in the futures contract more or less valuable. If the position is closed out by taking an opposite position prior to the settlement date of the futures contract, a final determination of variation margin is made. Any additional cash is required to be paid to or released by the broker and the Fund realizes a loss or gain.

In using futures contracts, a Fund may seek to establish with more certainty than would otherwise be possible the effective price of or rate of return on portfolio securities or securities that the Fund proposes to acquire. A Fund, for example, sells futures contracts in anticipation of a rise in interest rates that would cause a decline in the value of its debt investments. When this kind of hedging is successful, the futures contract increases in value when the Fund's debt securities decline in value and thereby keeps the Fund's net asset value from declining as much as it otherwise would. A Fund may also sell futures contracts on securities indices in anticipation of or during a stock market decline in an endeavor to offset a decrease in the market value of its equity investments. When a Fund is not fully invested and anticipates an increase in the cost of securities it intends to purchase, it may purchase financial futures contracts.

When increases in the prices of equities are expected, a Fund may purchase futures contracts on securities indices in order to gain rapid market exposure that may partially or entirely offset increases in the cost of the equity securities it intends to purchase.

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*Options on Futures Contracts*. Funds may also purchase and write call and put options on futures contracts. A call option on a futures contract gives the purchaser the right, in return for the premium paid, to purchase a futures contract (assume a long position) at a specified exercise price at any time before the option expires. A put option gives the purchaser the right, in return for the premium paid, to sell a futures contract (assume a short position), for a specified exercise price, at any time before the option expires.

Upon the exercise of a call, the writer of the option is obligated to sell the futures contract (to deliver a long position to the option holder) at the option exercise price, which will presumably be lower than the current market price of the contract in the futures market. Upon exercise of a put, the writer of the option is obligated to purchase the futures contract (deliver a short position to the option holder) at the option exercise price, which will presumably be higher than the current market price of the contract in the futures market. However, as with the trading of futures, most options are closed out prior to their expiration by the purchase or sale of an offsetting option at a market price that reflects an increase or a decrease from the premium originally paid. Options on futures can be used to hedge substantially the same risks addressed by the direct purchase or sale of the underlying futures contracts. For example, if a Fund anticipates a rise in interest rates and a decline in the market value of the debt securities in its portfolio, it might purchase put options or write call options on futures contracts instead of selling futures contracts.

If a Fund purchases an option on a futures contract, it may obtain benefits similar to those that would result if it held the futures position itself. But in contrast to a futures transaction, the purchase of an option involves the payment of a premium in addition to transaction costs. In the event of an adverse market movement, however, the Fund is not subject to a risk of loss on the option transaction beyond the price of the premium it paid plus its transaction costs.

When a Fund writes an option on a futures contract, the premium paid by the purchaser is deposited with the Fund's custodian. The Fund must maintain with its futures commission merchant all or a portion of the initial margin requirement on the underlying futures contract. It assumes a risk of adverse movement in the price of the underlying futures contract comparable to that involved in holding a futures position. Subsequent payments to and from the futures commission merchant, similar to variation margin payments, are made as the premium and the initial margin requirements are marked to market daily. The premium may partially offset an unfavorable change in the value of portfolio securities, if the option is not exercised, or it may reduce the amount of any loss incurred by the Fund if the option is exercised.

*Risks Associated with Futures Transactions*. There are many risks associated with transactions in futures contracts and related options. The value of the assets that are the subject of the futures contract may not move in the anticipated direction. A Fund's successful use of futures contracts is subject to the ability of those managing the fund's investments to predict correctly the factors affecting the market values of the Fund's portfolio securities. For example, if a Fund is hedged against the possibility of an increase in interest rates which would adversely affect debt securities held by the Fund and the prices of those debt securities instead increases, the Fund loses part or all of the benefit of the increased value of its securities it hedged because it has offsetting losses in its futures positions. Other risks include imperfect correlation between price movements in the financial instrument or securities index underlying the futures contract, on the one hand, and the price movements of either the futures contract itself or the securities held by the Fund, on the other hand. If the prices do not move in the same direction or to the same extent, the transaction may result in trading losses.

Prior to exercise or expiration, a position in futures may be terminated only by entering into a closing purchase or sale transaction. This requires a secondary market on the relevant contract market. A Fund enters into a futures contract or related option only if there appears to be a liquid secondary market. There can be no assurance, however, that such a liquid secondary market exists for any particular futures contract or related option at any specific time. Thus, it may not be possible to close out a futures position once it has been established. Under such circumstances, the Fund continues to be required to make daily cash payments of variation margin in the event of adverse price movements. In such situations, if the Fund has insufficient cash, it may be required to sell portfolio securities to meet daily variation margin requirements at a time when it may be disadvantageous to do so. In addition, the Fund may be required to perform under the terms of the futures contracts it holds. The inability to close out futures positions also could have an adverse impact on the Fund's ability effectively to hedge its portfolio.

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Most United States futures exchanges limit the amount of fluctuation permitted in futures contract prices during a single trading day. This daily limit establishes the maximum amount that the price of a futures contract may vary either up or down from the previous day's settlement price at the end of a trading session. Once the daily limit has been reached in a particular type of contract, no more trades may be made on that day at a price beyond that limit. The daily limit governs only price movements during a particular trading day and therefore does not limit potential losses because the limit may prevent the liquidation of unfavorable positions. Futures contract prices have occasionally moved to the daily limit for several consecutive trading days with little or no trading, thereby preventing prompt liquidation of futures positions and subjecting some futures traders to substantial losses.

<u>Debt-Linked and Equity-Linked Securities</u>

Each Fund may invest in debt-linked and equity-linked securities. The investment results of such instruments are intended to correspond generally to the performance of one or more specified equity or debt securities, or of a specific index or analogous "basket" of equity or debt securities. Therefore, investing in these instruments involves risks similar to the risks of investing in the underlying stocks or bonds directly. In addition, a Fund bears the risk that the issuer of an equity- or debt-linked security may default on its obligations under the instrument. Equity- and debt-linked securities are often used for many of the same purposes as, and share many of the same risks with, other derivative instruments as well as structured notes. Like many derivatives and structured notes, equity- and debt-linked securities may be considered illiquid, potentially limiting a Fund's ability to dispose of them.

<u>Hybrid Instruments</u>

A hybrid instrument is a type of derivative that combines a traditional stock or bond with an option or forward contract. Generally, the principal amount, amount payable upon maturity or redemption, or interest rate of a hybrid is tied (positively or negatively) to the price of some currency or securities index or another interest rate or some other economic factor (each a "benchmark"). The interest rate or (unlike most fixed income securities) the principal amount payable at maturity of a hybrid security may be increased or decreased, depending on changes in the value of the benchmark. An example of a hybrid could be a bond issued by an oil company that pays a small base level of interest with additional interest that accrues in correlation to the extent to which oil prices exceed a certain predetermined level. Such a hybrid instrument would be economically similar to a combination of a bond and a call option on oil.

Hybrids can be used as an efficient means of pursuing a variety of investment goals, including currency hedging, duration management and increased total return. Hybrids may not bear interest or pay dividends. The value of a hybrid or its interest rate may be a multiple of a benchmark and, as a result, may be leveraged and move (up or down) more steeply and rapidly than the benchmark. These benchmarks may be sensitive to economic and political events, such as currency devaluations, which cannot be readily foreseen by the purchaser of a hybrid. Under certain conditions, the redemption value of a hybrid could be zero. Thus, an investment in a hybrid may entail significant market risks that are not associated with a similar investment in a traditional, U.S. dollar-denominated bond that has a fixed principal amount and pays a fixed rate or floating rate of interest. The purchase of hybrids also exposes the Fund to the credit risk of the issuer of the hybrids. These risks may cause significant fluctuations in the NAV of a Fund.

Certain hybrid instruments may provide exposure to the commodities markets. These are derivative securities with one or more commodity-linked components that have payment features similar to commodity futures contracts, commodity options or similar instruments. Commodity-linked hybrid instruments may be either equity or debt securities, leveraged or unleveraged, and are considered hybrid instruments because they have both security and commodity-like characteristics. A portion of the value of these instruments may be derived from the value of a commodity, futures contract, index or other economic variable and therefore are subject to many of the same risks as investments in those underlying securities, instruments or commodities.

Certain issuers of structured products such as hybrid instruments may be deemed to be investment companies as defined in the 1940 Act. As a result, a Fund's investments in these products may be subject to limits applicable to investments in investment companies and may be subject to restrictions contained in the 1940 Act.

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<u>Spread Transactions</u>

Funds may engage in spread trades, which typically represent a simultaneous purchase and sale of two different contracts designed to capture the change in the relationship in price between the two contracts. Spread transactions are typically accompanied by lower margin requirements and lower volatility than an outright purchase. Funds may purchase spread options. The purchase of a covered spread option gives the Fund the right to put, or sell, a security that it owns at a fixed dollar spread or fixed yield spread in relationship to another security that the Fund does not own, but which is used as a benchmark. The risk to the Fund in purchasing covered spread options is the cost of the premium paid for the spread option and any transaction costs. In addition, there is no assurance that closing transactions will be available. The security covering the spread option is maintained in segregated accounts either with the Fund's custodian or on the Fund's records. The Funds do not consider a security covered by a spread option to be "pledged" as that term is used in the Fund's policy limiting the pledging or mortgaging of assets. The purchase of spread options can be used to protect Funds against adverse changes in prevailing credit quality spreads, i.e., the yield spread between high quality and lower quality securities.

<u>Swap Agreements and Options on Swap Agreements</u>

Funds may engage in swap transactions, including, but not limited to, swap agreements on interest rates, security or commodity indexes, specific securities and commodities, and credit and event-linked swaps, to the extent permitted by its investment restrictions. To the extent a Fund may invest in foreign currency-denominated securities, it may also invest in currency swap agreements and currency exchange rate swap agreements. Funds may also enter into options on swap agreements ("swap options").

Funds may enter into swap transactions for any legal purpose consistent with its investment objectives and policies, such as for the purpose of attempting to obtain or preserve a particular return or spread at a lower cost than obtaining a return or spread through purchases and/or sales of instruments in other markets; to protect against currency fluctuations; as a duration management technique; to protect against any increase in the price of securities a Fund anticipates purchasing at a later date; to gain exposure to one or more securities, currencies, or interest rates; to take advantage of perceived mispricing in the securities markets; or to gain exposure to certain markets in the most economical way possible.

Swap agreements are two party contracts entered into primarily by institutional investors for periods ranging from a few weeks to more than one year. In a standard "swap" transaction, two parties agree to exchange the returns (or differentials in rates of return) earned or realized on particular predetermined investments or instruments, which may be adjusted for an interest factor. The gross returns to be exchanged or "swapped" between the parties are generally calculated with respect to a "notional amount," i.e., the return on or increase in value of a particular dollar amount invested at a particular interest rate, in a particular foreign currency, or in a "basket" of securities or commodities representing a particular index.

• Interest Rate Swaps. Interest rate swaps involve the exchange by a Fund with another party of their respective commitments to pay or receive interest (for example, an exchange of floating rate payments for fixed rate payments with respect to a notional amount of principal). Forms of swap agreements also include interest rate caps, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates exceed a specified rate, or "cap"; interest rate floors, under which, in return for a premium, one party agrees to make payments to the other to the extent that interest rates fall below a specified rate, or "floor"; and interest rate collars, under which a party sells a cap and purchases a floor or vice versa in an attempt to protect itself against interest rate movements exceeding given minimum or maximum levels.

• Currency Swaps. A currency swap is an agreement to exchange cash flows on a notional amount based on changes in the relative values of the specified currencies.

• Index Swaps. An index swap is an agreement to make or receive payments based on the different returns that would be achieved if a notional amount were invested in a specified basket of securities (such as the S&P 500 Index) or in some other investment (such as U.S. Treasury Securities).

• Total Return Swaps. A total return swap is an agreement to make payments of the total return from a specified asset or instrument (or a basket of such instruments) during the specified period, in return for payments equal to a fixed or floating rate of interest or the total return from another specified asset or instrument. Alternatively, a total return swap can be structured so that one party will make payments to the other party if the value of the relevant asset or instrument increases, but receive payments from the other party if the value of that asset or instrument decreases.

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• Commodity Swap Agreements. Consistent with a Fund's investment objectives and general investment policies, certain of the Funds may invest in commodity swap agreements. For example, an investment in a commodity swap agreement may involve the exchange of floating-rate interest payments for the total return on a commodity index. In a total return commodity swap, a Fund will receive the price appreciation of a commodity index, a portion of the index, or a single commodity in exchange for paying an agreed-upon fee. If the commodity swap is for one period, a Fund may pay a fixed fee, established at the outset of the swap. However, if the term of the commodity swap is for more than one period, with interim swap payments, a Fund may pay an adjustable or floating fee. With a "floating" rate, the fee may be pegged to a base rate, such as the Secured Overnight Financing Rate (SOFR) or a similar reference rate, and is adjusted each period. Therefore, if interest rates increase over the term of the swap contract, a Fund may be required to pay a higher fee at each swap reset date.

• Credit Default Swap Agreements. The "buyer" in a credit default contract is obligated to pay the "seller" a periodic stream of payments over the term of the contract provided that no event of default on an underlying reference obligation has occurred. If an event of default occurs, the seller must pay the buyer the full notional value, or "par value," of the reference obligation in exchange for the reference obligation. A Fund may be either the buyer or seller in a credit default swap transaction. If a Fund is a buyer and no event of default occurs, the Fund will lose its investment and recover nothing. However, if an event of default occurs, the Fund (if the buyer) will receive the full notional value of the reference obligation that may have little or no value. As a seller, a Fund receives a fixed rate of income throughout the term of the contract, which typically is between six months and five years, provided that there is no default event. If an event of default occurs, the seller must pay the buyer the full notional value of the reference obligation. In addition, collateral posting requirements are individually negotiated and there is no regulatory requirement that a counterparty post collateral to secure its obligations or a specified amount of cash, depending upon the terms of the swap, under a credit default swap. Furthermore, there is no requirement that a party be informed in advance when a credit default swap agreement is sold. Accordingly, a Fund may have difficulty identifying the party responsible for payment of its claims. The notional value of credit default swaps with respect to a particular investment is often larger than the total par value of such investment outstanding and, in event of a default, there may be difficulties in making the required deliveries of the reference investments, possibly delaying payments.

Funds may invest in derivative instruments that provide exposure to one or more credit default swaps. For example, a Fund may invest in a derivative instrument known as the Loan-Only Credit Default Swap Index ("LCDX"), a tradable index with 100 equally-weighted underlying single-name loan-only credit default swaps ("LCDS"). Each underlying LCDS references an issuer whose loans trade in the secondary leveraged loan market. A Fund can either buy the index (take on credit exposure) or sell the index (pass credit exposure to a counterparty). While investing in these types of derivatives will increase the universe of debt securities to which a Fund is exposed, such investments entail additional risks that are not typically associated with investments in other debt securities. Credit default swaps and other derivative instruments related to loans are subject to the risks associated with loans generally, as well as the risks of derivative transactions.

• Investment Pools. Funds may invest in publicly or privately issued interests in investment pools whose underlying assets are credit default, credit-linked, interest rate, currency exchange, equity-linked or other types of swap contracts and related underlying securities or securities loan agreements. The pools' investment results may be designed to correspond generally to the performance of a specified securities index or "basket" of securities, or sometimes a single security. These types of pools are often used to gain exposure to multiple securities with a smaller investment than would be required to invest directly in the individual securities. They also may be used to gain exposure to foreign securities markets without investing in the foreign securities themselves and/or the relevant foreign market. To the extent that a Fund invests in pools of swaps and related underlying securities or securities loan agreements whose return corresponds to the performance of a foreign securities index or one or more foreign securities, investing in such pools will involve risks similar to the risks of investing in foreign securities. In addition to the risks associated with investing in swaps generally, a Fund bears the risks and costs generally associated with investing in pooled investment vehicles, such as paying the fees and expenses of the pool and the risk that the pool or the operator of the pool may default on its obligations to the holder of interests in the pool, such as a Fund. Interests in privately offered investment pools of swaps may be considered illiquid.

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• Contracts for Differences. "Contracts for differences" are swap arrangements in which a Fund may agree with a counterparty that its return (or loss) will be based on the relative performance of two different groups or "baskets" of securities. For example, as to one of the baskets, a Fund's return is based on theoretical long futures positions in the securities comprising that basket, and as to the other basket, a Fund's return is based on theoretical short futures positions in the securities comprising that other basket. The notional sizes of the baskets will not necessarily be the same, which can give rise to investment leverage. Funds may also use actual long and short futures positions to achieve the market exposure(s) as contracts for differences. Funds may enter into swaps and contracts for differences for investment return, hedging, risk management and for investment leverage.

• Swaptions. A swap option (also known as "swaptions") is a contract that gives a counterparty the right (but not the obligation) in return for payment of a premium, to enter into a new swap agreement or to shorten, extend, cancel, or otherwise modify an existing swap agreement, at some designated future time on specified terms. The buyer and seller of the swap option agree on the strike price, length of the option period, the term of the swap, notional amount, amortization and frequency of settlement. Funds may engage in swap options for hedging purposes or in an attempt to manage and mitigate credit and interest rate risk. Funds may write (sell) and purchase put and call swap options. The use of swap options involves risks, including, among others, imperfect correlation between movements of the price of the swap options and the price of the securities, indices or other assets serving as reference instruments for the swap option, reducing the effectiveness of the instrument for hedging or investment purposes.

*Obligations under Swap Agreements*. The swap agreements a Fund enters into settle in cash and, therefore, provide for calculation of the obligations of the parties to the agreement on a "net basis." Consequently, a Fund's current obligations (or rights) under such a swap agreement will generally be equal only to the net amount to be paid or received under the agreement based on the relative values of the positions held by each party to the agreement (the "net amount"). A Fund's current obligations under such a swap agreement will be accrued daily (offset against any amounts owed to the Fund).

*Risks Associated with Swap Agreements*. Swaps can be highly volatile and may have a considerable impact on a Fund's performance, as the potential gain or loss on any swap transaction is not subject to any fixed limit. Whether a Fund's use of swap agreements or swap options will be successful in furthering its investment objective of total return will depend on the ability of those managing the fund's investments to predict correctly whether certain types of investments are likely to produce greater returns than other investments. Because they are two party contracts and because they may have terms of greater than seven days, swap agreements may be considered to be illiquid. Moreover, a Fund bears the risk of loss of the amount expected to be received under a swap agreement in the event of the default or bankruptcy of a swap agreement counterparty. The Funds will enter into swap agreements only with counterparties that present minimal credit risks, as determined by those managing the fund's investments. Certain restrictions imposed on each Fund by the Internal Revenue Code may limit a Fund's ability to use swap agreements.

Depending on the terms of the particular option agreement, a Fund will generally incur a greater degree of risk when it writes a swap option than it will incur when it purchases a swap option. When a Fund purchases a swap option, it risks losing only the amount of the premium it has paid should it decide to let the option expire unexercised. However, when a Fund writes a swap option, upon exercise of the option the Fund will become obligated according to the terms of the underlying agreement.

*Liquidity of Swap Agreements*. Some swap markets have grown substantially in recent years with a large number of banks and investment banking firms acting both as principals and as agents utilizing standardized swap documentation. As a result, these swap markets have become relatively liquid. The liquidity of swap agreements will be determined by those managing the fund's investments based on various factors, including:

• the frequency of trades and quotations,

• the number of dealers and prospective purchasers in the marketplace,

• dealer undertakings to make a market,

• the nature of the security (including any demand or tender features), and

• the nature of the marketplace for trades (including the ability to assign or offset a portfolio's rights and obligations relating to the investment).

Such determination will govern whether a swap will be deemed to be within each Fund's restriction on investments in illiquid securities.

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*Valuing Swap Agreements*. For purposes of applying a fund's investment policies and restrictions (as stated in the Prospectuses and this SAI) swap agreements are generally valued by the funds at market value. In the case of a credit default swap, however, in applying certain of the funds' investment policies and restrictions the fund will value the credit default swap at its notional value or its full exposure value (i.e., the sum of the notional amount for the contract plus the market value), but may value the credit default swap at market value for purposes of applying certain of the funds' other investment policies and restrictions. For example, a fund may value credit default swaps at full exposure value for purposes of the fund's credit quality guidelines because such value reflects the fund's actual economic exposure during the term of the credit default swap agreement. In this context, both the notional amount and the market value may be positive or negative depending on whether the fund is selling or buying protection through the credit default swap. The manner in which certain securities or other instruments are valued by a fund for purposes of applying investment policies and restrictions may differ from the manner in which those investments are valued by other types of investors.

<u>Permissible Uses of Futures and Options on Futures Contracts</u>

Each Fund may enter into futures contracts and related options transactions, for hedging purposes and for other appropriate risk management purposes, and to modify the Fund's exposure to various currency, commodity, equity, or fixed-income markets. Each Fund may engage in futures trading in an effort to generate returns. When using futures contracts and options on futures contracts for hedging or risk management purposes, each Fund determines that the price fluctuations in the contracts and options are substantially related to price fluctuations in securities held by the Fund or which it expects to purchase. In pursuing traditional hedging activities, each Fund may sell futures contracts or acquire puts to protect against a decline in the price of securities that the Fund owns. Each Fund may purchase futures contracts or calls on futures contracts to protect the Fund against an increase in the price of securities the Fund intends to purchase before it is in a position to do so.

<u>Limitations on the Use of Futures, Options on Futures Contracts, and Swaps</u>

*All Funds except the Finisterre Emerging Markets Total Return Bond Fund.* CFTC Rule 4.5 provides that an investment company does not meet the definition of "commodity pool operator" under the CEA if its use of futures contracts, options on futures contracts, and swaps is sufficiently limited that the fund can fall within one of two exclusions set out in Rule 4.5. Each Fund intends to limit its use of futures contracts, options on futures contracts, and swaps to the degree necessary to fall within one of the two exclusions. If a Fund is unable to do so, it may incur expenses that are necessary to comply with the CEA and the rules the CFTC has adopted under it

*Finisterre Emerging Markets Total Return Bond Fund.* The Finisterre Emerging Markets Total Return Bond Fund is deemed to be a regulated "commodity pool" under the CEA and, as a result, may invest in futures contracts, options on futures contracts, and swaps in excess of the limitations imposed by the CFTC under Rule 4.5.

<u>Risk of Potential Government Regulation of Derivatives</u>

It is possible that additional government regulation of various types of derivative instruments, including futures, options and swap agreements, may limit or prevent a fund from using such instruments as a part of its investment strategy, and could ultimately prevent a fund from being able to achieve its investment objective. It is difficult to predict the effects future legislation and regulation in this area, but the effects could be substantial and adverse. It is possible that legislative and regulatory activity could limit or restrict the ability of a fund to use certain instruments as a part of its investment strategy.

Limits or restrictions applicable to the counterparties with which the funds engage in derivative transactions could also prevent the funds from using certain instruments.

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**Environmental, Social, and Governance Factors in the Selection of Portfolio Securities**

*(Applicable to all Funds or portions of the Funds, other than California Municipal Fund, Government & High Quality Bond Fund, Government Money Market Fund, Inflation Protection Fund, LargeCap S&P 500 Index Fund, Midcap S&P 400 Index Fund, the portion of MidCap Value I Fund managed by Victory Capital Management Inc., Money Market Fund, Small Cap Fund, and SmallCap S&P 600 Index Fund.)*

The portfolio managers of the Funds consider one or more environmental, social, and/or governance ("ESG") factors along with other, non-ESG factors in making investment decisions. The consideration of ESG factors is intended to further the stated objective of the particular Funds. These ESG factors are generally no more significant than other factors in the investment selection process, such that ESG factors may not be determinative in deciding to include or exclude any particular investment in the portfolio. By way of example, environmental factors can include one or more of the following: climate change, natural resources, pollution and waste, and environmental opportunities. Social factors can include one or more of the following: human capital, product liability, stakeholder opposition, and social opportunities. Governance factors can include corporate governance and/or corporate behavior. Integration of ESG factors is qualitative and subjective by nature. There is no guarantee that the criteria used, or judgment exercised, will reflect the beliefs or values of any particular investor. Further, there is no assurance that any strategy or integration of ESG factors will be successful or profitable.

Further, the portfolio managers of the Finisterre Emerging Markets Total Return Bond Fund and a portion of the emerging market debt investments in the Diversified Income Fund use filtering techniques based on ESG criteria, which can result in the exclusion of companies that have exposures to certain controversial sectors. The exclusion of companies from the investable universe may, under certain circumstances, detract from investment performance.

**Environmental, Social, and Governance Factors in the Selection of Investment Advisors and Asset Classes**

The Diversified Income Fund is structured as an asset allocation fund, in which PGI is responsible for selecting sub-advisors and investment teams within PGI that, in turn, are responsible for selecting underlying investments. In selecting sub-advisors, investment teams, and asset classes, the PGI asset allocation team considers ESG factors. ESG factors are generally no more significant than other factors in the selection process, such that ESG factors may not be determinative in deciding to include or exclude any particular sub-advisor, investment team, or asset class in the portfolio. Integration of ESG factors is qualitative and subjective by nature. There is no guarantee that the criteria used, or judgment exercised, will reflect the beliefs or values of any particular investor. Further, there is no assurance that any strategy or integration of ESG factors will be successful or profitable.

**Fixed-Income Securities**

<u>ETNs</u>

Certain funds may invest in, or sell short, exchange-traded notes ("ETNs"). ETNs are typically senior, unsecured, unsubordinated debt securities whose returns are linked to the performance of a particular market index less applicable fees and expenses. ETNs are listed on an exchange and traded in the secondary market. The fund may hold the ETN until maturity, at which time the issuer is obligated to pay a return linked to the performance of the relevant market index. ETNs do not make periodic interest payments and principal is not protected.

ETNs are subject to credit risk and the value of the ETN may drop due to a downgrade in the issuer's credit rating, despite the underlying market benchmark or strategy remaining unchanged. The value of an ETN may also be influenced by time to maturity, level of supply and demand for the ETN, volatility and lack of liquidity in underlying assets, changes in the applicable interest rates, changes in the issuer's credit rating, and economic, legal, political, or geographic events that affect the referenced underlying asset. When a Fund invests in ETNs, it will bear their proportionate share of any fees and expenses borne by the ETN. The Fund's decision to sell its ETN holdings may be limited by the availability of a secondary market. ETNs are also subject to tax risk. The Internal Revenue Service ("IRS") and Congress are considering proposals that would change the timing and character of income and gains from ETNs. There may also be times when an ETN share trades at a premium or discount to its market benchmark or strategy.

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<u>Funding Agreements</u>

Some Funds may invest in Guaranteed Investment Contracts ("GICs") and similar funding agreements. In connection with these investments, a Fund makes cash contributions to a deposit fund of an insurance company's general account. The insurance company then credits to a Fund on a monthly basis guaranteed interest, which is based on an index (such as SOFR or a similar reference rate). The funding agreements provide that this guaranteed interest will not be less than a certain minimum rate. The purchase price paid for a funding agreement becomes part of the general assets of the insurance company. GICs are considered illiquid securities and will be subject to any limitations on such investments, unless there is an active and substantial secondary market for the particular instrument and market quotations are readily available.

Generally, funding agreements are not assignable or transferable without the permission of the issuing company, and an active secondary market in some funding agreements does not currently exist. Investments in GICs are subject to the risks associated with fixed-income instruments generally, and are specifically subject to the credit risk associated with an investment in the issuing insurance company.

<u>Inflation-Indexed Bonds</u>

Some Funds may invest in inflation-indexed bonds or inflation protected debt securities, which are fixed income securities whose value is periodically adjusted according to the rate of inflation. Two structures are common. The U.S. Treasury and some other issuers utilize a structure that accrues inflation into the principal value of the bond. Most other issuers pay out the Consumer Price Index accruals as part of a semi-annual coupon. Inflation-indexed securities issued by the U.S. Treasury (Treasury Inflation Protected Securities or TIPS) have maturities of approximately five, ten or thirty years, although it is possible that securities with other maturities will be issued in the future. The U.S. Treasury securities pay interest on a semi-annual basis equal to a fixed percentage of the inflation-adjusted principal amount. If the periodic adjustment rate measuring inflation falls, the principal value of inflation-indexed bonds will be adjusted downward, and consequently the interest payable on these securities (calculated with respect to a smaller principal amount) will be reduced. The value of inflation-indexed bonds is expected to change in response to changes in real interest rates. Real interest rates in turn are tied to the relationship between nominal interest rates and the rate of inflation. Therefore, if the rate of inflation rises at a faster rate than nominal interest rates, real interest rates might decline, leading to an increase in value of inflation-indexed bonds. In contrast, if nominal interest rates increase at a faster rate than inflation, real interest rates might rise, leading to a decrease in value of inflation-indexed bonds. While these securities are expected to be protected from long-term inflationary trends, short-term increases in inflation may lead to a decline in value. If interest rates rise due to reasons other than inflation (for example, due to changes in currency exchange rates), investors in these securities may not be protected to the extent that the increase is not reflected in the bond's inflation measure.

The periodic adjustment of U.S. inflation-indexed bonds is tied to the Consumer Price Index for Urban Consumers (CPI-U), which is calculated monthly by the U.S. Bureau of Labor Statistics. The CPI-U is a measurement of changes in the cost of living, made up of components such as housing, food, transportation and energy. Inflation-indexed bonds issued by a foreign government are generally adjusted to reflect a comparable inflation index calculated by that government. Any increase in the principal amount of an inflation-indexed bond will be considered taxable ordinary income, even though investors do not receive their principal until maturity.

<u>Step-Coupon Securities</u>

Each Fund may invest in step-coupon securities. Step-coupon securities trade at a discount from their face value and pay coupon interest. The coupon rate is low for an initial period and then increases to a higher coupon rate thereafter. Market values of these types of securities generally fluctuate in response to changes in interest rates to a greater degree than conventional interest-paying securities of comparable term and quality. Under many market conditions, investments in such securities may be illiquid, making it difficult for a Fund to dispose of them or determine their current value.

<u>"Stripped" Securities</u>

Each Fund may invest in stripped securities, which are usually structured with two or more classes that receive different proportions of the interest and principal distribution on a pool of U.S. government or foreign government securities or mortgage assets. In some cases, one class will receive all of the interest (the interest-only or "IO" class), while the other class will receive all of the principal (the principal-only or "PO" class). Stripped securities commonly have greater market volatility than other types of fixed-income securities. In the case of stripped mortgage securities, if the underlying mortgage assets experience greater than anticipated payments of principal, a Fund may fail to recoup fully its investments in IOs. Stripped securities may be illiquid. Stripped securities may be considered derivative securities.

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<u>Structured Notes</u>

Some Funds may invest in a broad category of instruments known as "structured notes." These instruments are debt obligations issued by industrial corporations, financial institutions or governmental or international agencies. Traditional debt obligations typically obligate the issuer to repay the principal plus a specified rate of interest. Structured notes, by contrast, obligate the issuer to pay amounts of principal or interest that are determined by reference to changes in some external factor or factors, or the principal and interest rate may vary from the stated rate because of changes in these factors. For example, the issuer's obligations could be determined by reference to changes in the value of a foreign currency, an index of securities (such as the S&P 500 Index) or an interest rate (such as the U.S. Treasury bill rate). In some cases, the issuer's obligations are determined by reference to changes over time in the difference (or "spread") between two or more external factors (such as the U.S. prime lending rate and the total return of the stock market in a particular country, as measured by a stock index). In some cases, the issuer's obligations may fluctuate inversely with changes in an external factor or factors (for example, if the U.S. prime lending rate goes up, the issuer's interest payment obligations are reduced). In some cases, the issuer's obligations may be determined by some multiple of the change in an external factor or factors (for example, three times the change in the U.S. Treasury bill rate). In some cases, the issuer's obligations remain fixed (as with a traditional debt instrument) so long as an external factor or factors do not change by more than the specified amount (for example, if the value of a stock index does not exceed some specified maximum), but if the external factor or factors change by more than the specified amount, the issuer's obligations may be sharply reduced.

Structured notes can serve many different purposes in the management of a fund. For example, they can be used to increase a fund's exposure to changes in the value of assets that a fund would not ordinarily purchase directly (such as stocks traded in a market that is not open to U.S. investors). They also can be used to hedge the risks associated with other investments a fund holds. For example, if a structured note has an interest rate that fluctuates inversely with general changes in a country's stock market index, the value of the structured note would generally move in the opposite direction to the value of holdings of stocks in that market, thus moderating the effect of stock market movements on the value of a fund's portfolio as a whole. The cash flow on the underlying instruments may be apportioned among the newly issued structured notes to create securities with different investment characteristics such as varying maturities, payment priorities or interest rate provisions; the extent of the payments made with respect to structured notes is dependent on the extent of the cash flow on the underlying instruments.

Structured notes involve special risks. As with any debt obligation, structured notes involve the risk that the issuer will become insolvent or otherwise default on its payment obligations. This risk is in addition to the risk that the issuer's obligations (and thus the value of a fund's investment) will be reduced because of adverse changes in the external factor or factors to which the obligations are linked. The value of structured notes will in many cases be more volatile (that is, will change more rapidly or severely) than the value of traditional debt instruments. Volatility will be especially high if the issuer's obligations are determined by reference to some multiple of the change in the external factor or factors. Structured notes also may be more difficult to accurately price than less complex securities and instruments or more traditional debt securities. Many structured notes have limited or no liquidity, so that a fund would be unable to dispose of the investment prior to maturity. As with all investments, successful use of structured notes depends in significant part on the accuracy of the analysis of those managing the fund's investments of the issuer's creditworthiness and financial prospects, and of their forecast as to changes in relevant economic and financial market conditions and factors. In instances where the issuer of a structured note is a foreign entity, the usual risks associated with investments in foreign securities apply. Structured notes may be considered derivative securities.

<u>Zero-Coupon Securities</u>

Each Fund may invest in zero-coupon securities. Zero-coupon securities have no stated interest rate and pay only the principal portion at a stated date in the future. They usually trade at a substantial discount from their face (par) value. Zero-coupon securities are subject to greater market value fluctuations in response to changing interest rates than debt obligations of comparable maturities that make distributions of interest in cash.

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**Foreign Currency Transactions**

<u>Options on Foreign Currencies</u>

A Fund may buy and write options on foreign currencies in a manner similar to that in which futures or forward contracts on foreign currencies will be utilized. Each Fund may use options on foreign currencies to hedge against adverse changes in foreign currency conversion rates. For example, a decline in the U.S. dollar value of a foreign currency in which portfolio securities are denominated will reduce the U.S. dollar value of such securities, even if their value in the foreign currency remains constant. In order to protect against such diminutions in the value of the portfolio securities, a Fund may buy put options on the foreign currency. If the value of the currency declines, a Fund will have the right to sell such currency for a fixed amount in U.S. dollars, thereby offsetting, in whole or in part, the adverse effect on its portfolio. Conversely, when a rise in the U.S. dollar value of a currency in which securities to be acquired are denominated is projected, thereby increasing the cost of such securities, a Fund may buy call options on the foreign currency. The purchase of such options could offset, at least partially, the effects of the adverse movements in exchange rates. As in the case of other types of options, however, the benefit to a Fund from purchases of foreign currency options will be reduced by the amount of the premium and related transaction costs. In addition, if currency exchange rates do not move in the direction or to the extent desired, a Fund could sustain losses or lesser gains on transactions in foreign currency options that would require a Fund to forgo a portion or all of the benefits of advantageous changes in those rates.

Each Fund also may write options on foreign currencies. For example, to hedge against a potential decline in the U.S. dollar due to adverse fluctuations in exchange rates, a Fund could, instead of purchasing a put option, write a call option on the relevant currency. If the decline expected by a Fund occurs, the option will most likely not be exercised and the diminution in value of portfolio securities will be offset at least in part by the amount of the premium received. Similarly, instead of purchasing a call option to hedge against a potential increase in the U.S. dollar cost of securities to be acquired, a Fund could write a put option on the relevant currency which, if rates move in the manner projected by a Fund, will expire unexercised and allow a Fund to hedge the increased cost up to the amount of the premium. If exchange rates do not move in the expected direction, the option may be exercised and a Fund would be required to buy or sell the underlying currency at a loss, which may not be fully offset by the amount of the premium. Through the writing of options on foreign currencies, a Fund also may lose all or a portion of the benefits that might otherwise have been obtained from favorable movements in exchange rates.

<u>Futures on Currency</u>

A foreign currency future provides for the future sale by one party and purchase by another party of a specified quantity of foreign currency at a specified price and time. A public market exists in futures contracts covering a number of foreign currencies. Currency futures contracts are exchange-traded and change in value to reflect movements of a currency or a basket of currencies. Settlement must be made in a designated currency.

<u>Forward Foreign Currency Exchange Contracts</u>

Each Fund may, but is not obligated to, enter into forward foreign currency exchange contracts. Currency transactions include forward currency contracts and exchange listed or over-the-counter options on currencies. A forward currency contract involves a privately negotiated obligation to purchase or sell a specific currency at a specified future date at a price set at the time of the contract.

The typical use of a forward contract is to "lock in" the price of a security in U.S. dollars or some other foreign currency which a Fund is holding in its portfolio. By entering into a forward contract for the purchase or sale, for a fixed amount of dollars or other currency, of the amount of foreign currency involved in the underlying security transactions, a Fund may be able to protect itself against a possible loss resulting from an adverse change in the relationship between the U.S. dollar or other currency which is being used for the security purchase and the foreign currency in which the security is denominated in or exposed to during the period between the date on which the security is purchased or sold and the date on which payment is made or received.

Those managing the fund's investments also may from time to time utilize forward contracts for other purposes. For example, they may be used to hedge a foreign security held in the portfolio or a security which pays out principal tied to an exchange rate between the U.S. dollar and a foreign currency, against a decline in value of the applicable foreign currency. They also may be used to lock in the current exchange rate of the currency in which those securities anticipated to be purchased are denominated in or exposed to. At times, each Fund may enter into "cross-currency" hedging transactions involving currencies other than those in which securities are held or proposed to be purchased are denominated.

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It should be noted that the use of forward foreign currency exchange contracts does not eliminate fluctuations in the underlying prices of the securities. It simply establishes a rate of exchange between the currencies that can be achieved at some future point in time. Additionally, although such contracts tend to minimize the risk of loss due to a decline in the value of the hedged currency, they also tend to limit any potential gain that might result if the value of the currency increases.

**Foreign Securities**

Investing in foreign securities carries political and economic risks distinct from those associated with investing in the United States. Investments in foreign securities also involve the risk of possible adverse changes in investment or exchange control regulations, expropriation or confiscatory taxation, limitation on or delays in the removal of funds or other assets of a fund, political or financial instability, or diplomatic and other developments that could affect such investments. Foreign investments may be affected by actions of foreign governments adverse to the interests of U.S. investors, including the possibility of expropriation or nationalization of assets, confiscatory taxation, restrictions on U.S. investment, or on the ability to repatriate assets or to convert currency into U.S. dollars. There may be a greater possibility of default by foreign governments or foreign-government sponsored enterprises. Investments in foreign countries also involve a risk of local political, economic, or social instability; military action or unrest; or adverse diplomatic developments.

<u>Asia-Pacific Countries</u>

In addition to the risks of foreign investing and the risks of investing in emerging markets, the developing market Asia-Pacific countries in which a Fund may invest are subject to certain additional or specific risks. In the Asia-Pacific markets, there is a high concentration of market capitalization and trading volume in a small number of issuers representing a limited number of industries, as well as a high concentration of investors and financial intermediaries. Many of these markets also may be affected by developments with respect to more established markets in the region, such as Japan and Hong Kong. Brokers in developing market Asia-Pacific countries typically are fewer in number and less well capitalized than brokers in the United States.

Many of the developing market Asia-Pacific countries may be subject to a greater degree of economic, political and social instability than is the case in the United States and Western European countries. Such instability may result from, among other things: (i) authoritarian governments or military involvement in political and economic decision- making, including changes in government through extra-constitutional means; (ii) popular unrest associated with demands for improved political, economic and social conditions; (iii) internal insurgencies; (iv) hostile relations with neighboring countries; and/or (v) ethnic, religious and racial disaffection. In addition, the governments of many of such countries, such as Indonesia, have a heavy role in regulating and supervising the economy.

An additional risk common to most such countries is that the economy is heavily export-oriented and, accordingly, is dependent upon international trade. The existence of overburdened infrastructure and obsolete financial systems also present risks in certain countries, as do environmental problems. Certain economies also depend to a significant degree upon exports of primary commodities and, therefore, are vulnerable to changes in commodity prices that, in turn, may be affected by a variety of factors. The legal systems in certain developing market Asia-Pacific countries also may have an adverse impact on a Fund. The rights of investors in developing market Asia-Pacific companies may be more limited than those of shareholders of U.S. corporations. It may be difficult or impossible to obtain and/or enforce a judgment in a developing market Asia-Pacific country.

<u>China</u>

Investing in China involves special considerations, including: the risk of nationalization or expropriation of assets or confiscatory taxation; greater governmental involvement in and control over the economy, interest rates and currency exchange rates; controls on foreign investment and limitations on repatriation of invested capital; greater social, economic and political uncertainty; dependency on exports and the corresponding importance of international trade; and currency exchange rate fluctuations. The government of China maintains strict currency controls in support of economic, trade and political objectives and regularly intervenes in the currency market. The government's actions in this respect may not be transparent or predictable. Furthermore, it is difficult for foreign investors to directly access money market securities in China because of investment and trading restrictions. These and other factors may decrease the value and liquidity of a fund's investments.

A fund may obtain exposure to companies based or operated in China by investing through legal structures known as variable interest entities ("VIEs"). VIEs are not formally recognized under Chinese law and are subject to risks, such as the risk that China could cease to allow VIEs, could impose new restrictions on VIEs, or could deem the contractual arrangements of VIEs unenforceable. These risks could limit or eliminate the remedies and rights available to VIEs and their investors, such as a fund. If these risks materialize, the value of a fund's investments in VIEs could be adversely affected, and a fund could incur significant losses with no available recourse.

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<u>Investments in Stock Connect and Bond Connect</u>

Funds may invest in China A shares, which are shares of certain Chinese companies listed and traded through the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect programs ("Stock Connect"). Stock Connect is a securities trading and clearing program established by Hong Kong Exchanges and Clearing Limited, the Shanghai Stock Exchange ("SSE"), the Shenzhen Stock Exchange ("SZSE") and China Securities Depository and Clearing Corporation Limited, which seeks to provide mutual stock market access between Mainland China and Hong Kong. Trading through Stock Connect is subject to numerous restrictions and risks that could impair the Fund's ability to invest in or sell China A shares and adversely affect the Fund's performance, such as the following:

• China A shares generally may not be sold, purchased or otherwise transferred other than through Stock Connect in accordance with applicable rules, regulations, and restrictions. Such securities may lose their eligibility, in which case they presumably could be sold but could no longer be purchased through Stock Connect. Market volatility and settlement difficulties in the China A share markets may result in significant fluctuations in the prices and liquidity of the securities traded on such markets. Further regulations or restrictions, such as limitations on redemptions or suspension of trading, may adversely impact the Fund.

• Stock Connect is generally only available on business days when both the China and Hong Kong markets are open and when banking services are available in both markets on the corresponding settlement days. As a result, a Fund may not be able trade when it would be otherwise attractive to do so, and the Fund may not be able to dispose of its China A shares in a timely manner.

• Investing in China A shares is subject to Stock Connect's clearance and settlement procedures, which could pose risks to the Fund. Certain requirements must be completed before the market opening, or a Fund cannot sell the shares on that trading day. Stock Connect also imposes quotas that limit aggregate net purchases on an exchange on a particular day, and an investor cannot purchase and sell the same security through Stock Connect on the same trading day. Once the daily quota is reached, orders to purchase additional China A shares through Stock Connect will be rejected. Such restrictions could limit a Fund's ability to sell its China A shares in a timely manner, or to sell them at all.

• If a Fund holds 5% or more of a China A share issuer's total shares through Stock Connect investments, the Fund must return any profits obtained from the purchase and sale of those shares if both transactions occur within a six-month period. All accounts managed by the Funds' Advisor and/or its affiliates will be aggregated for purposes of this 5% limitation, which makes it more likely that a Fund's profits may be subject to these limitations.

• Stock Connect uses an omnibus clearing structure, and the Fund's shares will be registered in its custodian's name on the Central Clearing and Settlement System. This may limit the ability of the Fund's advisor to effectively manage a Fund, and may expose the Fund to the credit risk of its custodian or to greater risk of expropriation. Investment in China A shares through Stock Connect may be available only through a single broker that is an affiliate of the Fund's custodian, which may affect the quality of execution provided by such broker.

• China A shares purchased through Stock Connect will be held via a book entry omnibus account in the name of Hong Kong Securities Clearing Company Limited ("HKSCC"), Hong Kong's clearing entity, and not the Fund's name as the beneficial owner. Therefore, a Fund's ability to exercise its rights as a shareholder and to pursue claims against the issuer of China A shares may be limited. While Chinese regulations and the Hong Kong Stock Exchange have issued clarifications and guidance supporting the concept of beneficial ownership through Stock Connect, the interpretation of beneficial ownership in China by regulators and courts may continue to evolve.

• The Fund's investments in China A shares through Stock Connect are generally subject to Chinese securities regulations and listing rules, among other restrictions. The Fund will not benefit from access to Hong Kong investor compensation funds, which are set up to protect against defaults of trades, when investing through Stock Connect. Investments in China A shares may not be covered by the securities investor protection programs of the exchanges and, without the protection of such programs, will be subject to the risk of default by the broker. If the depository of the SSE and the SZSE defaulted, a Fund may not be able to recover fully its losses from the depository or may be delayed in receiving proceeds as part of any recovery process.

• Fees, costs and taxes imposed on foreign investors (such as the Fund) may be higher than comparable fees, costs and taxes imposed on owners of other securities that provide similar investment exposure. Trades using Stock Connect may also be subject to various fees, taxes and market charges imposed by Chinese market participants and regulatory authorities. Uncertainties in China's tax rules related to the taxation of income and gains from investments in China A shares could result in unexpected tax liabilities for the Fund, and the withholding tax treatment of dividends and capital gains payable to overseas investors currently is unsettled.

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• Because trades of eligible China A shares on Stock Connect must be settled in Renminbi (RMB), the Chinese currency, Funds investing through Stock Connect will be exposed to RMB currency risks. The ability to hedge RMB currency risks may be limited. The RMB is subject to exchange control restrictions, and the Fund could be adversely affected by delays in converting currencies into RMB and vice versa.

• Because Stock Connect is in its early stages, the effect on the market for trading China A shares with the introduction of numerous foreign investors is currently unknown. Stock Connect is relatively new and may be subject to further interpretation and guidance. There can be no assurance as to Stock Connect's continued existence or whether future developments regarding the program may restrict or adversely affect the Fund's investments or returns.

Funds may also invest in China Interbank bonds traded on the China Interbank Bond Market ("CIBM") through the China - Hong Kong Bond Connect program ("Bond Connect"). In China, the Hong Kong Monetary Authority Central Money Markets Unit holds Bond Connect securities on behalf of investors (such as the Fund) in accounts maintained with maintained with a China-based custodian (either the China Central Depository & Clearing Co. or the Shanghai Clearing House). Investments using Bond Connect are subject to risks similar to those described above with respect to Stock Connect.

<u>Europe</u>

The economies and markets of European countries are often closely connected and interdependent, and events in one European country can have an adverse impact on other European countries. Certain funds may invest in securities of issuers that are domiciled in, or have significant operations in, member countries of the Economic and Monetary Union of the European Union (the "EU"), which requires member countries to comply with restrictions on inflation rates, deficits, interest rates, debt levels and fiscal and monetary controls. Decreasing imports or exports, changes in governmental or EU regulations on trade, changes in the exchange rate of the euro (the common currency of certain EU countries), the default or threat of default by an EU member country on its sovereign debt, and/or an economic recession in an EU member country may have a significant adverse effect on the economies of EU member countries and their trading partners, including some or all of the emerging markets countries. Although certain European countries do not use the euro, many of these countries are obliged to meet the criteria for joining the euro zone. Consequently, these countries must comply with many of the restrictions noted above. The European financial markets have experienced volatility and adverse trends in recent years due to concerns about economic downturns, rising government debt levels and the possible default of government debt in several European countries. Further defaults or restructurings by governments and other entities of their debt could have additional adverse effects on economies, financial markets and asset valuations around the world. In addition, one or more countries may abandon the euro and/or withdraw from the EU. The United Kingdom (the "UK") departed the EU on January 31, 2020 (commonly referred to as "Brexit"). As a result of Brexit, the UK may be less stable than it had been in prior years, and investments in the UK may be more volatile due to economic uncertainty and currency exchange rate fluctuations. The impact of these actions by European countries, especially if they occur in a disorderly fashion, is not clear but could be significant and far-reaching and could adversely impact the value of investments in the region.

<u>Japan</u>

Japanese investments may be significantly affected by events influencing Japan's economy and the exchange rate between the Japanese yen and the U.S. dollar. Japan's economy fell into a long recession in the 1990s. After a few years of mild recovery in the mid-2000s, Japan's economy fell into another recession as a result of the recent global economic crisis. Japan is heavily dependent on exports and foreign oil. Japan is located in a seismically active area, and has experienced earthquakes and tsunamis that have significantly affected important elements of its infrastructure. Due to these events, Japan's financial markets can fluctuate dramatically. The full extent of the impact of earthquakes and tsunamis on Japan's economy and on foreign investment in Japan is difficult to estimate. Japan's economic prospects may be affected by the political and military situations of its near neighbors, notably North and South Korea, China, and Russia.

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<u>Latin America</u>

Most Latin American countries have experienced, at one time or another, severe and persistent levels of inflation, including, in some cases, hyperinflation. This has, in turn, led to high interest rates, extreme measures by governments to keep inflation in check, and a generally debilitating effect on economic growth. Although inflation in many countries has lessened, there is no guarantee it will remain at lower levels. In addition, the political history of certain Latin American countries has been characterized by political uncertainty, intervention by the military in civilian and economic spheres, and political corruption. Such developments, if they were to reoccur, could reverse favorable trends toward market and economic reform, privatization, and removal of trade barriers, and result in significant disruption in securities markets. Certain Latin American countries may also have managed currencies, which are maintained at artificial levels to the U.S. dollar rather than at levels determined by the market. This type of system can lead to sudden and large adjustments in the currency which, in turn, can have a disruptive and negative effect on foreign investors. There is no significant foreign exchange market for many currencies and it would, as a result, be difficult for the Fund to engage in foreign currency transactions designed to protect the value of the Fund's interests in securities denominated in such currencies. Finally, a number of Latin American countries are among the largest debtors of developing markets. There have been moratoria on, and reschedulings of, repayment with respect to these debts. Such events can restrict the flexibility of these debtor nations in the international markets and result in the imposition of onerous conditions on their economies.

**High Yield Securities**

Each Fund may invest a portion of its assets in bonds that are rated below investment grade (sometimes called "high yield bonds" or "junk bonds"), which are rated at the time of purchase Ba1 or lower by Moody's and BB+ or lower by S&P Global Ratings. If the bond has been rated by only one of the rating agencies, that rating will determine the bond's rating; if the bond is rated differently by the rating agencies, the highest rating will be used; and if the bond has not been rated by either of the rating agencies, those selecting such investments will determine the bond's quality. Lower-rated bonds involve a higher degree of credit risk, which is the risk that the issuer will not make interest or principal payments when due. In the event of an unanticipated default, a fund would experience a reduction in its income and could expect a decline in the market value of the bonds so affected. Issuers of high yield securities may be involved in restructurings or bankruptcy proceedings that may not be successful. If an issuer defaults, it may not be able to pay all or a portion of interest and principal owed to the fund, it may exchange the high yield securities owned by the fund for other securities, including equities, and/or the fund may incur additional expenses while seeking recovery of its investment. Some funds may also invest in unrated bonds of foreign and domestic issuers. Unrated bonds, while not necessarily of lower quality than rated bonds, may not have as broad a market. Because of the size and perceived demand of the issue, among other factors, certain municipalities may not incur the expense of obtaining a rating. Those managing the fund's investments will analyze the creditworthiness of the issuer, as well as any financial institution or other party responsible for payments on the bond, in determining whether to purchase unrated bonds. Unrated bonds will be included in the limitation each fund has with regard to high yield bonds unless those managing the fund's investments deem such securities to be the equivalent of investment-grade bonds. Some of the high yield securities consist of Rule 144A securities. High yield securities may contain any type of interest rate payment or reset terms, including fixed rate, adjustable rate, zero coupon, contingent, deferred, payment-in-kind, and those with auction rate features.

**Initial Public Offerings ("IPOs")**

An IPO is a company's first offering of stock to the public. IPO risk is that the market value of IPO shares will fluctuate considerably due to factors such as the absence of a prior public market, unseasoned trading, the small number of shares available for trading, and limited information about the issuer. The purchase of IPO shares may involve high transaction costs. IPO shares are subject to market risk and liquidity risk. In addition, the market for IPO shares can be speculative and/or inactive for extended periods. The limited number of shares available for trading in some IPOs may make it more difficult for a fund to buy or sell significant amounts of shares without an unfavorable impact on prevailing prices. Investors in IPO shares can be affected by substantial dilution in the value of their shares by sales of additional shares and by concentration of control in existing management and principal shareholders.

When a fund's asset base is small, a significant portion of the fund's performance could be attributable to investments in IPOs because such investments would have a magnified impact on the fund. As the fund's assets grow, the effect of the fund's investments in IPOs on the fund's performance probably will decline, which could reduce the fund's performance. Because of the price volatility of IPO shares, a fund may choose to hold IPO shares for a very short period. This may increase the turnover of the fund's portfolio and lead to increased expenses to the fund, such as commissions and transaction costs. By selling IPO shares, the fund may realize taxable gains it will subsequently distribute to shareholders.

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**Interfund Lending and Borrowing**

The SEC has granted an exemption permitting Principal Funds to borrow money from and lend money to each other for temporary or emergency purposes. The loans are subject to a number of conditions designed to ensure fair and equitable treatment of all participating funds, including the following: (1) no fund may borrow money through the program unless it receives a more favorable interest rate than a rate approximating the lowest interest rate at which bank loans would be available to any of the participating funds under a loan agreement; and (2) no fund may lend money through the program unless it receives a more favorable return than that available from an investment in overnight repurchase agreements. In addition, a fund may participate in the program only if and to the extent that such participation is consistent with a fund's investment objectives and policies. Interfund loans and borrowings have a maximum duration of seven days. Loans may be called on one day's notice. A fund may have to borrow from a bank at a higher interest rate if an interfund loan is called or not renewed. Any delay in repayment to a lending fund could result in a lost investment opportunity or additional costs. The Board is responsible for overseeing and periodically reviewing the interfund lending program.

**Inverse Floating Rate and Other Variable and Floating Rate Instruments**

Each Fund may purchase variable and floating rate instruments. These instruments may include variable amount master demand notes that permit the indebtedness thereunder to vary in addition to providing for periodic adjustments in the interest rate. These instruments may also include leveraged inverse floating rate debt instruments, or "inverse floaters". The interest rate of an inverse floater resets in the opposite direction from the market rate of interest on a security or interest to which it is related. An inverse floater may be considered to be leveraged to the extent that its interest rate varies by a magnitude that exceeds the magnitude of the change in the index rate of interest and is subject to many of the same risks as derivatives. The higher degree of leverage inherent in inverse floaters is associated with greater volatility in their market values. Certain of these investments may be illiquid. The absence of an active secondary market with respect to these investments could make it difficult for a Fund to dispose of a variable or floating rate note if the issuer defaulted on its payment obligation or during periods that a Fund is not entitled to exercise its demand rights, and a Fund could, for these or other reasons, suffer a loss with respect to such instruments.

**Investment Company Securities**

Securities of other investment companies, including shares of closed-end investment companies (including interval funds), unit investment trusts, various exchange-traded funds ("ETFs"), and other open-end investment companies, represent interests in professionally managed portfolios that may invest in a variety of instruments. Certain types of investment companies, such as certain closed-end investment companies, do not continuously offer their shares for sale (like open-end investment companies) but instead issue a fixed number of shares that trade on a stock exchange or over-the-counter at a premium or a discount to their net asset value. An interval fund is a type of closed-end investment company that is continuously offered at net asset value, is not listed on an exchange, and only periodically offers to repurchase a limited amount of outstanding shares from its shareholders. Investing in interval funds involves liquidity risk, and the liquidity risk is even greater in interval funds that invest in securities of companies with smaller market capitalizations, derivatives, securities with substantial market and/or credit risk, or securities that are themselves illiquid. Other types of investment companies, such as ETFs, are continuously offered at net asset value but may also be traded in the secondary market. ETFs are often structured to perform in a similar fashion to a broad-based securities index. Investing in ETFs involves generally the same risks as investing directly in the underlying instruments. Investing in ETFs involves the risk that they will not perform in exactly the same fashion, or in response to the same factors, as the index or underlying instruments. Shares of ETFs may trade at prices other than NAV.

A fund that invests in another investment company is subject to the risks associated with direct ownership of the securities in which such investment company invests. Fund shareholders indirectly bear their proportionate share of the expenses of each such investment company, including its advisory and administrative fees. The fund would also continue to pay its own advisory fees and other expenses. Consequently, the fund and its shareholders would, in effect, absorb two levels of fees with respect to investments in other investment companies.

A fund may invest in affiliated underlying funds, and those who manage such fund's investments and their affiliates may earn different fees from different underlying funds and may have an incentive to allocate more fund assets to underlying funds from which they receive higher fees.

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**Master Limited Partnerships ("MLPs")**

An MLP is an entity that is generally taxed as a partnership for federal income tax purposes and that derives each year at least 90% of its gross income from "Qualifying Income". Qualifying Income includes interest, dividends, real estate rents, gain from the sale or disposition of real property, income and gain from commodities or commodity futures, and income and gain from mineral or natural resources activities that generate Qualifying Income. MLP interests (known as units) are traded on securities exchanges or over-the-counter. An MLP's organization as a partnership and compliance with the Qualifying Income rules generally eliminates federal tax at the entity level.

An MLP has one or more general partners (who may be individuals, corporations, or other partnerships) which manage the partnership, and limited partners, which provide capital to the partnership but have no role in its management. Typically, the general partner is owned by company management or another publicly traded sponsoring corporation. When an investor buys units in an MLP, the investor becomes a limited partner. Holders of MLP units have limited control and voting rights on matters affecting the partnership and are exposed to a remote possibility of liability for all of the obligations of that MLP in the event that a court determines that the rights of the holders of MLP units to vote to remove or replace the general partner of that MLP, to approve amendments to that MLP's partnership agreement, or to take other action under the partnership agreement of that MLP would constitute "control" of the business of that MLP, or a court or governmental agency determines that the MLP is conducting business in a state without complying with the partnership statute of that state. Holders of MLP units are also exposed to the risk that they will be required to repay amounts to the MLP that are wrongfully distributed to them.

The business of certain MLPs is affected by supply and demand for energy commodities because such MLPs derive revenue and income based upon the volume of the underlying commodity produced, transported, processed, distributed, and/ or marketed. Pipeline MLPs have indirect commodity exposure to oil and gas price volatility because, although they do not own the underlying energy commodity, the general level of commodity prices may affect the volume of the commodity the MLP delivers to its customers and the cost of providing services such as distributing natural gas liquids. The costs of natural gas pipeline MLPs to perform services may exceed the negotiated rates under "negotiated rate" contracts. Processing MLPs may be directly affected by energy commodity prices. Propane MLPs own the underlying energy commodity, and therefore have direct exposure to energy commodity prices. The MLP industry in general could be hurt by market perception that MLP's performance and valuation are directly tied to commodity prices.

Pipeline MLPs are common carrier transporters of natural gas, natural gas liquids (primarily propane, ethane, butane and natural gasoline), crude oil or refined petroleum products (gasoline, diesel fuel and jet fuel). Pipeline MLPs also may operate ancillary businesses such as storage and marketing of such products. Pipeline MLPs derive revenue from capacity and transportation fees. Historically, pipeline output has been less exposed to cyclical economic forces due to its low-cost structure and government-regulated nature. In addition, most pipeline MLPs have limited direct commodity price exposure because they do not own the product being shipped.

Processing MLPs are gatherers and processors of natural gas as well as providers of transportation, fractionation and storage of natural gas liquids ("NGLs"). Processing MLPs derive revenue from providing services to natural gas producers, which require treatment or processing before their natural gas commodity can be marketed to utilities and other end user markets. Revenue for the processor is fee based, although it is not uncommon to have some participation in the prices of the natural gas and NGL commodities for a portion of revenue.

Propane MLPs are distributors of propane to homeowners for space and water heating. Propane MLPs derive revenue from the resale of the commodity on a margin over wholesale cost. The ability to maintain margin is a key to profitability. Propane serves approximately 3% of the household energy needs in the United States, largely for homes beyond the geographic reach of natural gas distribution pipelines. Approximately 70% of annual cash flow is earned during the winter heating season (October through March). Accordingly, volumes are weather dependent, but have utility type functions similar to electricity and natural gas.

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MLPs operating interstate pipelines and storage facilities are subject to substantial regulation by the Federal Energy Regulatory Commission ("FERC"), which regulates interstate transportation rates, services and other matters regarding natural gas pipelines including: the establishment of rates for service; regulation of pipeline storage and liquified natural gas facility construction; issuing certificates of need for companies intending to provide energy services or constructing and operating interstate pipeline and storage facilities; and certain other matters. FERC also regulates the interstate transportation of crude oil, including: regulation of rates and practices of oil pipeline companies; establishing equal service conditions to provide shippers with equal access to pipeline transportation; and establishment of reasonable rates for transporting petroleum and petroleum products by pipeline. Certain MLPs regulated by the FERC have the right, but are not obligated, to redeem common units held by an investor who is not subject to U.S. federal income taxation. The financial condition and results of operations of an MLP that redeems its common units could be adversely impacted.

MLPs are subject to various federal, state and local environmental laws and health and safety laws as well as laws and regulations specific to their particular activities. These laws and regulations address: health and safety standards for the operation of facilities, transportation systems and the handling of materials; air and water pollution requirements and standards; solid waste disposal requirements; land reclamation requirements; and requirements relating to the handling and disposition of hazardous materials. MLPs are subject to the costs of compliance with such laws applicable to them, and changes in such laws and regulations may adversely affect their results of operations.

MLPs may be subject to liability relating to the release of substances into the environment, including liability under federal "Superfund" and similar state laws for investigation and remediation of releases and threatened releases of hazardous materials, as well as liability for injury and property damage for accidental events, such as explosions or discharges of materials causing personal injury and damage to property. Such potential liabilities could have a material adverse effect upon the financial condition and results of operations of MLPs.

MLPs are subject to numerous business related risks, including: deterioration of business fundamentals reducing profitability due to development of alternative energy sources, consumer sentiment with respect to global warming, changing demographics in the markets served, unexpectedly prolonged and precipitous changes in commodity prices and increased competition that reduces the MLP's market share; the lack of growth of markets requiring growth through acquisitions; disruptions in transportation systems; the dependence of certain MLPs upon the energy exploration and development activities of unrelated third parties; availability of capital for expansion and construction of needed facilities; a significant decrease in natural gas production due to depressed commodity prices or otherwise; the inability of MLPs to successfully integrate recent or future acquisitions; and the general level of the economy.

**Municipal Obligations and AMT-Subject Bonds**

Municipal Obligations are obligations issued by or on behalf of states, territories, and possessions of the United States and the District of Columbia and their political subdivisions, agencies and instrumentalities, including municipal utilities, or multi-state agencies or authorities. The interest on Municipal Obligations is exempt from federal income tax in the opinion of bond counsel to the issuer. Three major classifications of Municipal Obligations are: Municipal Bonds, that generally have a maturity at the time of issue of one year or more; Municipal Notes, that generally have a maturity at the time of issue of six months to three years; and Municipal Commercial Paper, that generally has a maturity at the time of issue of 30 to 270 days.

The term "Municipal Obligations" includes debt obligations issued to obtain funds for various public purposes, including the construction of a wide range of public facilities such as airports, bridges, highways, housing, hospitals, mass transportation, schools, streets, water and sewer works, and electric utilities. Other public purposes for which Municipal Obligations are issued include refunding outstanding obligations, obtaining funds for general operating expenses, and lending such funds to other public institutions and facilities. To the extent that a fund invests a significant portion of its assets in municipal obligations issued in connection with a single project, the fund likely will be affected by the economic, business or political environment of the project.

AMT-Subject Bonds are industrial development bonds issued by or on behalf of public authorities to obtain funds to provide for the construction, equipment, repair or improvement of privately operated housing facilities, sports facilities, convention or trade show facilities, airport, mass transit, industrial, port or parking facilities, air or water pollution control facilities, and certain local facilities for water supply, gas, electricity, or sewage or solid waste disposal. They are considered to be Municipal Obligations if the interest paid thereon qualifies as exempt from federal income tax in the opinion of bond counsel to the issuer, even though the interest may be subject to the federal individual alternative minimum tax.

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<u>Municipal Bonds</u>

Municipal Bonds may be either "general obligation" or "revenue" issues. General obligation bonds are secured by the issuer's pledge of its faith, credit, and taxing power for the payment of principal and interest. Revenue bonds are payable from the revenues derived from a particular facility or class of facilities or, in some cases, from the proceeds of a special excise tax or other specific revenue source (e.g., the user of the facilities being financed), but not from the general taxing power. Industrial development bonds and pollution control bonds in most cases are revenue bonds and generally do not carry the pledge of the credit of the issuing municipality. The payment of the principal and interest on industrial revenue bonds depends solely on the ability of the user of the facilities financed by the bonds to meet its financial obligations and the pledge, if any, of real and personal property so financed as security for such payment. Funds may also invest in "moral obligation" bonds that are normally issued by special purpose public authorities. If an issuer of moral obligation bonds is unable to meet its obligations, the repayment of the bonds becomes a moral commitment but not a legal obligation of the state or municipality in question.

<u>Municipal Commercial Paper</u>

Municipal Commercial Paper refers to short-term obligations of municipalities that may be issued at a discount and may be referred to as Short-Term Discount Notes. Municipal Commercial Paper is likely to be used to meet seasonal working capital needs of a municipality or interim construction financing. Generally they are repaid from general revenues of the municipality or refinanced with long-term debt. In most cases Municipal Commercial Paper is backed by letters of credit, lending agreements, note repurchase agreements or other credit facility agreements offered by banks or other institutions.

<u>Municipal Notes</u>

Municipal Notes usually are general obligations of the issuer and are sold in anticipation of a bond sale, collection of taxes, or receipt of other revenues. Payment of these notes is primarily dependent upon the issuer's receipt of the anticipated revenues. Other notes include "Construction Loan Notes" issued to provide construction financing for specific projects, and "Bank Notes" issued by local governmental bodies and agencies to commercial banks as evidence of borrowings. Some notes ("Project Notes") are issued by local agencies under a program administered by the U.S. Department of Housing and Urban Development. Project Notes are secured by the full faith and credit of the United States.

• Bank Notes are notes issued by local governmental bodies and agencies such as those described above to commercial banks as evidence of borrowings. The purposes for which the notes are issued are varied but they are frequently issued to meet short-term working-capital or capital-project needs. These notes may have risks similar to the risks associated with TANs and RANs.

• Bond Anticipation Notes ("BANs") are usually general obligations of state and local governmental issuers which are sold to obtain interim financing for projects that will eventually be funded through the sale of long-term debt obligations or bonds. The ability of an issuer to meet its obligations on its BANs is primarily dependent on the issuer's access to the long-term municipal bond market and the likelihood that the proceeds of such bond sales will be used to pay the principal and interest on the BANs.

• &nbsp;&nbsp;&nbsp;&nbsp;Construction Loan Notes are issued to provide construction financing for specific projects. Permanent financing, the proceeds of which are applied to the payment of construction loan notes, is sometimes provided by a commitment by the Government National Mortgage Association ("GNMA") to purchase the loan, accompanied by a commitment by the Federal Housing Administration to insure mortgage advances thereunder. In other instances, permanent financing is provided by commitments of banks to purchase the loan. The California Municipal and Tax-Exempt Bond Funds will only purchase construction loan notes that are subject to GNMA or bank purchase commitments.

• Revenue Anticipation Notes ("RANs") are issued by governments or governmental bodies with the expectation that future revenues from a designated source will be used to repay the notes. In general, they also constitute general obligations of the issuer. A decline in the receipt of projected revenues, such as anticipated revenues from another level of government, could adversely affect an issuer's ability to meet its obligations on outstanding RANs. In addition, the possibility that the revenues would, when received, be used to meet other obligations could affect the ability of the issuer to pay the principal and interest on RANs.

• Tax Anticipation Notes ("TANs") are issued by state and local governments to finance the current operations of such governments. Repayment is generally to be derived from specific future tax revenues. TANs are usually general obligations of the issuer. A weakness in an issuer's capacity to raise taxes due to, among other things, a decline in its tax base or a rise in delinquencies, could adversely affect the issuer's ability to meet its obligations on outstanding TANs.

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<u>Other Municipal Obligations</u>

Other kinds of Municipal Obligations are occasionally available in the marketplace, and the fund may invest in such other kinds of obligations to the extent consistent with its investment objective and limitations. Such obligations may be issued for different purposes and with different security than those mentioned.

<u>Stand-By Commitments</u>

Funds may acquire stand-by commitments with respect to municipal obligations held in their respective portfolios. Under a stand-by commitment, a broker-dealer, dealer, or bank would agree to purchase, at the relevant funds' option, a specified municipal security at a specified price. Thus, a stand-by commitment may be viewed as the equivalent of a put option acquired by a fund with respect to a particular municipal security held in the fund's portfolio.

The amount payable to a fund upon its exercise of a stand-by commitment normally would be 1) the acquisition cost of the municipal security (excluding any accrued interest that the fund paid on the acquisition), less any amortized market premium or plus any amortized market or original issue discount during the period the fund owned the security, plus, 2) all interest accrued on the security since the last interest payment date during the period the security was owned by the fund. Absent unusual circumstances, the fund would value the underlying municipal security at amortized cost. As a result, the amount payable by the broker-dealer, dealer or bank during the time a stand-by commitment is exercisable would be substantially the same as the value of the underlying municipal obligation.

A fund's right to exercise a stand-by commitment would be unconditional and unqualified. Although a fund could not transfer a stand-by commitment, it could sell the underlying municipal security to a third party at any time. It is expected that stand-by commitments generally will be available to the funds without the payment of any direct or indirect consideration. The funds may, however, pay for stand-by commitments if such action is deemed necessary. In any event, the total amount paid for outstanding stand-by commitments held in a fund's portfolio would not exceed 0.50% of the value of a fund's total assets calculated immediately after each stand-by commitment is acquired.

The funds intend to enter into stand-by commitments only with broker-dealers, dealers, or banks that those managing the fund's investments believe present minimum credit risks. A fund's ability to exercise a stand-by commitment will depend upon the ability of the issuing institution to pay for the underlying securities at the time the stand-by commitment is exercised. The credit of each institution issuing a stand-by commitment to a fund will be evaluated on an ongoing basis by those managing the fund's investments.

A fund intends to acquire stand-by commitments solely to facilitate portfolio liquidity and does not intend to exercise its right thereunder for trading purposes. The acquisition of a stand-by commitment would not affect the valuation of the underlying municipal security. Each stand-by commitment will be valued at zero in determining net asset value. Should a fund pay directly or indirectly for a stand-by commitment, its costs will be reflected in realized gain or loss when the commitment is exercised or expires. The maturity of a municipal security purchased by a fund will not be considered shortened by any stand-by commitment to which the obligation is subject. Thus, stand-by commitments will not affect the dollar-weighted average maturity of a fund's portfolio.

<u>Variable and Floating Rate Obligations</u>

Certain Municipal Obligations, obligations issued or guaranteed by the U.S. government or its agencies or instrumentalities, and debt instruments issued by domestic banks or corporations may carry variable or floating rates of interest. Such instruments bear interest at rates which are not fixed, but which vary with changes in specified market rates or indices, such as a bank prime rate or tax-exempt money market index. Variable rate notes are adjusted to current interest rate levels at certain specified times, such as every 30 days. A floating rate note adjusts automatically whenever there is a change in its base interest rate adjustor, e.g., a change in the prime lending rate or specified interest rate indices. Typically, such instruments carry demand features permitting the fund to redeem at par.

The fund's right to obtain payment at par on a demand instrument upon demand could be affected by events occurring between the date the fund elects to redeem the instrument and the date redemption proceeds are due which affects the ability of the issuer to pay the instrument at par value. Those managing the fund's investments monitor on an ongoing basis the pricing, quality, and liquidity of such instruments and similarly monitor the ability of an issuer of a demand instrument, including those supported by bank letters of credit or guarantees, to pay principal and interest on demand. Although the ultimate maturity of such variable rate obligations may exceed one year, the fund treats the maturity of each variable rate demand obligation as the longer of a) the notice period required before the fund is entitled to payment of the principal amount through demand or b) the period remaining until the next interest rate adjustment. Floating rate instruments with demand features are deemed to have a maturity equal to the period remaining until the principal amount can be recovered through demand.

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Funds may purchase participation interests in variable rate Municipal Obligations (such as industrial development bonds). A participation interest gives the purchaser an undivided interest in the Municipal Obligation in the proportion that its participation interest bears to the total principal amount of the Municipal Obligation. A fund has the right to demand payment on seven days' notice, for all or any part of the fund's participation interest in the Municipal Obligation, plus accrued interest. Each participation interest is backed by an irrevocable letter of credit or guarantee of a bank. Banks will retain a service and letter of credit fee and a fee for issuing repurchase commitments in an amount equal to the excess of the interest paid on the Municipal Obligations over the negotiated yield at which the instruments were purchased by the fund.

<u>Risks of Municipal Obligations</u>

The yields on Municipal Obligations are dependent on a variety of factors, including general economic and monetary conditions, money market factors, conditions in the Municipal Obligations market, size of a particular offering, maturity of the obligation, and rating of the issue. The fund's ability to achieve its investment objective also depends on the continuing ability of the issuers of the Municipal Obligations in which it invests to meet their obligation for the payment of interest and principal when due.

Municipal Obligations are subject to the provisions of bankruptcy, insolvency, and other laws affecting the rights and remedies of creditors, such as the Federal Bankruptcy Act. They are also subject to federal or state laws, if any, which extend the time for payment of principal or interest, or both, or impose other constraints upon enforcement of such obligations or upon municipalities to levy taxes. The power or ability of issuers to pay, when due, principal of and interest on Municipal Obligations may also be materially affected by the results of litigation or other conditions.

From time to time, proposals have been introduced before Congress for the purpose of restricting or eliminating the federal income tax exemption for interest on Municipal Obligations. It may be expected that similar proposals will be introduced in the future. If such a proposal was enacted, the ability of the fund to pay "exempt interest" dividends may be adversely affected. The fund would reevaluate its investment objective and policies and consider changes in its structure.

<u>Special Considerations Relating to California Municipal Obligations</u>

The California Municipal Fund concentrates its investments in California municipal obligations, and therefore may be significantly impacted by political, economic, or regulatory developments that affect issuers in California and their ability to pay principal and interest on their obligations. The ability of issuers to pay interest on, and repay principal of, California municipal obligations may be affected by 1) amendments to the California Constitution and related statutes that limit the taxing and spending authority of California government entities, 2) voter initiatives, 3) a wide variety of California laws and regulations, including laws related to the operation of health care institutions and laws related to secured interests in real property, and 4) the general financial condition of the State of California and the California economy. The Tax-Exempt Bond Fund also invests in California municipal obligations.

<u>Taxable Investments of the Municipal Funds</u>

The California Municipal and Tax-Exempt Bond Funds may invest a portion of their assets, as described in the Prospectus, in taxable short-term investments consisting of: Obligations issued or guaranteed by the U.S. Government or its agencies or instrumentalities, domestic bank certificates of deposit and bankers' acceptances, short-term corporate debt securities such as commercial paper, and repurchase agreements ("Taxable Investments"). These investments must have a stated maturity of one year or less at the time of purchase and must meet the following standards: banks must have assets of at least $1 billion; commercial paper must be rated at least "A" by S&P Global or "Prime" by Moody's or, if not rated, must be issued by companies having an outstanding debt issue rated at least "A" by S&P Global or Moody's; corporate bonds and debentures must be rated at least "A" by S&P Global or Moody's. Interest earned from Taxable Investments is taxable to investors. When, in the opinion of the Fund's Manager, it is advisable to maintain a temporary "defensive" posture, the California Municipal and Tax-Exempt Bond Funds may invest without limitation in Taxable Investments. At other times, the following investments will not exceed 20% of the Fund's total assets: Taxable Investments; Municipal Obligations that do not meet quality standards required for the 80% portion of the portfolio; and Municipal Obligations, the interest on which is treated as a tax preference item for purposes of the federal individual alternative minimum tax.

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<u>Insurance</u>

The insured municipal obligations in which the California Municipal and Tax-Exempt Bond Funds may invest are insured under insurance policies that relate to the specific municipal obligation in question. This insurance is generally non-cancelable and will continue in force so long as the municipal obligations are outstanding, and the insurer remains in business.

The insured municipal obligations are generally insured as to the scheduled payment of all installments of principal and interest as they fall due. The insurance covers only credit risk and therefore does not guarantee the market value of the obligations in a Fund's investment portfolio or a Fund's NAV. The Fund's NAV will continue to fluctuate in response to fluctuations in interest rates. A Fund's investment policy requiring investment in insured municipal obligations will not affect the Fund's ability to hold its assets in cash or to invest in escrow-secured and defeased bonds or in certain short-term tax-exempt obligations, or affect its ability to invest in uninsured taxable obligations for temporary or liquidity purposes or on a defensive basis.

**Pay-in-Kind Securities**

Each Fund may invest in pay-in-kind securities. Pay-in-kind securities pay dividends or interest in the form of additional securities of the issuer, rather than in cash. These securities are usually issued and traded at a discount from their face amounts. The amount of the discount varies depending on various factors, such as the time remaining until maturity of the securities, prevailing interest rates, the liquidity of the security, and the perceived credit quality of the issuer. The market prices of pay-in-kind securities generally are more volatile than the market prices of securities that pay interest periodically and are likely to respond to changes in interest rates to a greater degree than are other types of securities having similar maturities and credit quality.

**Portfolio Turnover (Active Trading)**

Portfolio turnover is a measure of how frequently a portfolio's securities are bought and sold. The portfolio turnover rate is generally calculated as the dollar value of the lesser of a portfolio's purchases or sales of shares of securities during a given year, divided by the monthly average value of the portfolio securities during that year (excluding securities whose maturity or expiration at the time of acquisition were less than one year). For example, a portfolio reporting a 100% portfolio turnover rate would have purchased and sold securities worth as much as the monthly average value of its portfolio securities during the year.

It is not possible to predict future turnover rates with accuracy. Many variable factors are outside the control of a portfolio manager. The investment outlook for the securities in which a portfolio may invest may change as a result of unexpected developments in securities markets, economic or monetary policies, or political relationships. High market volatility may result in a portfolio manager using a more active trading strategy than might otherwise be employed. Each portfolio manager considers the economic effects of portfolio turnover but generally does not treat the portfolio turnover rate as a limiting factor in making investment decisions.

Sale of shares by investors may require the liquidation of portfolio securities to meet cash flow needs. In addition, changes in a particular portfolio's holdings may be made whenever the portfolio manager considers that a security is no longer appropriate for the portfolio or that another security represents a relatively greater opportunity. Such changes may be made without regard to the length of time that a security has been held.

Higher portfolio turnover rates generally increase transaction costs that are expenses of the Fund. Active trading may generate short-term gains (losses) for taxable shareholders.

The following Funds had significant variation in portfolio turnover rates over the two most recently completed fiscal years:

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| | | | |
|:---|:---|:---|:---|
| **Fund/Portfolio** | **2025<br>Turnover** | **2024<br>Turnover** | **Comments** |
| Principal LifeTime Hybrid 2055 Fund | 33.7% | 16.8% | Turnover increased in 2025 due to higher cash flows and therefore more trading compared to 2024. |
| SAM Balanced Portfolio | 44.7% | 17.3% | Turnover increased in 2025 due to allocation changes over the year. |
| SAM Conservative Growth Portfolio | 41.9% | 18.3% | Turnover increased in 2025 due to allocation changes over the year. |
| SAM Strategic Growth Portfolio | 44.8% | 18.2% | Turnover increased in 2025 due to allocation changes over the year. |

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**Preferred Securities**

Preferred securities can include: traditional preferred securities, hybrid-preferred securities, $25 par hybrid preferred securities, baby bonds, U.S. dividend received deduction ("DRD") preferred stock, fixed rate and floating rate adjustable preferred securities, step-up preferred securities, public and 144A $1000 par capital securities including U.S. agency subordinated debt issues, trust originated preferred securities, monthly income preferred securities, quarterly income bond securities, quarterly income debt securities, quarterly income preferred securities, corporate trust securities, public income notes, and other trust preferred securities.

• Traditional Preferred Securities. Traditional preferred securities may be issued by an entity taxable as a corporation and pay fixed or floating rate dividends. However, these claims are subordinated to more senior creditors, including senior debt holders. "Preference" means that a company must pay dividends on its preferred securities before paying any dividends on its common stock, and the claims of preferred securities holders are ahead of common stockholders' claims on assets in a corporate liquidation. Holders of preferred securities usually have no right to vote for corporate directors or on other matters. Preferred securities share many investment characteristics with both common stock and bonds.

• Hybrid or Trust Preferred Securities. Hybrid-preferred securities are debt instruments that have characteristics similar to those of traditional preferred securities (characteristics of both subordinated debt and preferred stock). Hybrid preferred securities may be issued by corporations, generally in the form of interest-bearing instruments with preferred securities characteristics, or by an affiliated trust or partnership of the corporation, generally in the form of preferred interests in subordinated business trusts or similarly structured securities. The hybrid-preferred securities market consists of both fixed and adjustable coupon rate securities that are either perpetual in nature or have stated maturity dates. Hybrid preferred holders generally have claims to assets in a corporate liquidation that are senior to those of traditional preferred securities but subordinate to those of senior debt holders. Certain subordinated debt and senior debt issues that have preferred characteristics are also considered to be part of the broader preferred securities market.

Preferred securities may be issued by trusts (likely one that is wholly-owned by a financial institution or other corporate entity, typically a bank holding company) or other special purpose entities established by operating companies, and are therefore not direct obligations of operating companies. The financial institution creates the trust and owns the trust's common securities. The trust uses the sale proceeds of its preferred securities to purchase, for example, subordinated debt issued by the financial institution. The financial institution uses the proceeds from the subordinated debt sale to increase its capital while the trust receives periodic interest payments from the financial institution for holding the subordinated debt. The trust uses the funds received to make dividend payments to the holders of the trust preferred securities. The primary advantage of this structure may be that the trust preferred securities are treated by the financial institution as debt securities for tax purposes and as equity for the calculation of capital requirements.

Trust preferred securities typically bear a market rate coupon comparable to interest rates available on debt of a similarly rated issuer. Typical characteristics include long-term maturities, early redemption by the issuer, periodic fixed or variable interest payments, and maturities at face value. Holders of trust preferred securities have limited voting rights to control the activities of the trust and no voting rights with respect to the financial institution. The market value of trust preferred securities may be more volatile than those of conventional debt securities. Trust preferred securities may be issued in reliance on Rule 144A under the 1933 Act and subject to restrictions on resale. There can be no assurance as to the liquidity of trust preferred securities and the ability of holders, such as a fund, to sell their holdings. The condition of the financial institution can be looked to identify the risks of trust preferred securities as the trust typically has no business operations other than to issue the trust preferred securities. If the financial institution defaults on interest payments to the trust, the trust will not be able to make dividend payments to holders of its securities, such as a fund.

• Floating Rate Preferred Securities. Floating rate preferred securities provide for a periodic adjustment in the interest rate paid on the securities. The terms of such securities provide that interest rates are adjusted periodically based upon an interest rate adjustment index. The adjustment intervals may be regular, and range from daily up to annually, or may be event-based, such as a change in the short-term interest rate. Because of the interest rate reset feature, floating rate securities provide the Fund with a certain degree of protection against rising interest rates, although the interest rates of floating rate securities will participate in any declines in interest rates as well.

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If a portion of a fund's income consists of dividends paid by U.S. corporations, a portion of the dividends paid by the fund may be eligible for the corporate dividends-received deduction for corporate shareholders. In addition, distributions reported by a fund as derived from qualified dividend income ("QDI") will be taxed in the hands of individuals at the reduced rates applicable to net capital gains, provided certain holding period and other requirements are met by both the shareholder and the fund. Dividend income that a fund receives from REITs, if any, will generally not be treated as QDI and will not qualify for the corporate dividends-received deduction. It is unclear the extent to which distributions a fund receives from investments in certain preferred securities will be eligible for treatment as QDI or for the corporate dividends-received deduction. A fund cannot predict at this time what portion, if any, of its dividends will qualify for the corporate dividends-received deduction or be eligible for the reduced rates of taxation applicable to QDI.

**Real Estate Investment Trusts ("REITs")**

REITs are pooled investment vehicles that invest in income producing real estate, real estate related loans, or other types of real estate interests. U.S. REITs are allowed to eliminate corporate level federal tax so long as they meet certain requirements of the Internal Revenue Code. Foreign REITs ("REIT-like") entities may have similar tax treatment in their respective countries. Equity real estate investment trusts own real estate properties, while mortgage real estate investment trusts make and/or invests in construction, development, and long-term mortgage loans. Their value may be affected by changes in the underlying property of the trusts, the creditworthiness of the issuer, property taxes, interest rates, and tax and regulatory requirements, such as those relating to the environment. Both types of trusts are not diversified, are dependent upon management skill, are subject to heavy cash flow dependency, defaults by borrowers, self-liquidation, and the possibility of failing to qualify for tax-free status of income under the Internal Revenue Code and failing to maintain exemption from the 1940 Act. In addition, foreign REIT-like entities will be subject to foreign securities risks. (See "Foreign Securities").

**Repurchase and Reverse Repurchase Agreements, Mortgage Dollar Rolls and Sale-Buybacks**

Each Fund may invest in repurchase and reverse repurchase agreements. Repurchase agreements typically involve the purchase of debt securities from a financial institution such as a bank, savings and loan association, or broker-dealer. A repurchase agreement provides that the fund sells back to the seller and that the seller repurchases the underlying securities at a specified price on a specific date. Repurchase agreements may be viewed as loans by a fund collateralized by the underlying securities. This arrangement results in a fixed rate of return that is not subject to market fluctuation while the fund holds the security. In the event of a default or bankruptcy by a selling financial institution, the affected fund bears a risk of loss. To minimize such risks, the fund enters into repurchase agreements only with parties those managing the fund's investments deem creditworthy (those that are large, well-capitalized, and well-established financial institutions). In addition, the value of the securities collateralizing the repurchase agreement is, and during the entire term of the repurchase agreement remains, at least equal to the acquisition price the Funds pay to the seller of the securities.

In a repurchase agreement, a Fund purchases a security and simultaneously commits to resell that security to the seller at an agreed upon price on an agreed upon date within a number of days (usually not more than seven) from the date of purchase. The resale price consists of the purchase price plus an amount that is unrelated to the coupon rate or maturity of the purchased security. A repurchase agreement involves the obligation of the seller to pay the agreed upon price, which obligation is in effect secured by the value (at least equal to the amount of the agreed upon resale price and marked-to-market daily) of the underlying security or "collateral." A risk associated with repurchase agreements is the failure of the seller to repurchase the securities as agreed, which may cause a Fund to suffer a loss if the market value of such securities declines before they can be liquidated on the open market. In the event of bankruptcy or insolvency of the seller, a Fund may encounter delays and incur costs in liquidating the underlying security. Repurchase agreements that mature in more than seven days are subject to each Fund's limit on illiquid investments. While it is not possible to eliminate all risks from these transactions, it is the policy of the Fund to limit repurchase agreements to those parties whose creditworthiness has been reviewed and found satisfactory by those managing the fund's investments.

Each Fund may use reverse repurchase agreements, mortgage dollar rolls, and economically similar transactions to obtain cash to satisfy unusually heavy redemption requests or for other temporary or emergency purposes without the necessity of selling portfolio securities, or to earn additional income on portfolio securities, such as Treasury bills or notes. In a reverse repurchase agreement, a Fund sells a portfolio security to another party, such as a bank or broker-dealer, in return for cash and agrees to repurchase the instrument at a particular price and time. A Fund will enter into reverse repurchase agreements only with parties that those managing the fund's investments deem creditworthy. Using reverse repurchase agreements to earn additional income involves the risk that the interest earned on the invested proceeds is less than the expense of the reverse repurchase agreement transaction. This technique may also have a leveraging effect on the Fund.

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A "mortgage dollar roll" is similar to a reverse repurchase agreement in certain respects. In a "dollar roll" transaction a Fund sells a mortgage-related security, such as a security issued by the Government National Mortgage Association, to a dealer and simultaneously agrees to repurchase a similar security (but not the same security) in the future at a pre-determined price. A dollar roll can be viewed, like a reverse repurchase agreement, as a collateralized borrowing in which a Fund pledges a mortgage-related security to a dealer to obtain cash. Unlike in the case of reverse repurchase agreements, the dealer with which a Fund enters into a dollar roll transaction is not obligated to return the same securities as those originally sold by the Fund, but only securities which are "substantially identical." To be considered "substantially identical," the securities returned to a Fund generally must: 1) be collateralized by the same types of underlying mortgages; 2) be issued by the same agency and be part of the same program; 3) have a similar original stated maturity; 4) have identical net coupon rates; 5) have similar market yields (and therefore price); and 6) satisfy "good delivery" requirements, meaning that the aggregate principal amounts of the securities delivered and received back must be within 0.01% of the initial amount delivered.

Each Fund also may effect simultaneous purchase and sale transactions that are known as "sale-buybacks." A sale-buyback is similar to a reverse repurchase agreement, except that in a sale-buyback, the counterparty who purchases the security is entitled to receive any principal or interest payments made on the underlying security pending settlement of the Fund's repurchase of the underlying security.

**Restricted and Illiquid Securities**

A Fund may experience difficulty in valuing and selling illiquid securities and, in some cases, may be unable to value or sell certain illiquid securities for an indefinite period of time. Illiquid securities may include a wide variety of investments, such as (1) repurchase agreements maturing in more than seven days (unless the agreements have demand/redemption features), (2) OTC options contracts and certain other derivatives (including certain swap agreements), (3) fixed time deposits that are not subject to prepayment or do not provide for withdrawal penalties upon prepayment (other than overnight deposits), (4) loan interests and other direct debt instruments, (5) certain municipal lease obligations, (6) commercial paper issued pursuant to Section 4(a)(2) of the 1933 Act, (7) thinly-traded securities, and (8) securities whose resale is restricted under the federal securities laws or contractual provisions (including restricted, privately placed securities that, under the federal securities laws, generally may be resold only to qualified institutional buyers). Generally, restricted securities may be sold only in a public offering for which a registration statement has been filed and declared effective or in a transaction that is exempt from the registration requirements of the Securities Act of 1933. When registration is required, a Fund that owns restricted securities may be obligated to pay all or part of the registration expenses and a considerable period may elapse between the time of the decision to sell and the time the Fund may be permitted to sell a restricted security. If adverse market conditions were to develop during such a period, the Fund might obtain a less favorable price than existed when it decided to sell.

Illiquid and restricted securities are priced at fair value as determined in good faith by PGI as the Funds' valuation designee, subject to the Board's oversight. As described above, some of the Funds have adopted investment restrictions that limit investments in illiquid securities.

**Royalty Trusts**

A royalty trust generally acquires an interest in natural resource or chemical companies and distributes the income it receives to its investors. A sustained decline in demand for natural resource and related products could adversely affect royalty trust revenues and cash flows. Such a decline could result from a recession or other adverse economic conditions, an increase in the market price of the underlying commodity, higher taxes or other regulatory actions that increase costs, or a shift in consumer demand. Rising interest rates could harm the performance and limit the capital appreciation of royalty trusts because of the increased availability of alternative investments at more competitive yields. Fund shareholders will indirectly bear their proportionate share of the royalty trusts' expenses.

**Securitized Products - Mortgage- and Asset-Backed Securities**

The yield characteristics of the mortgage- and asset-backed securities in which a Fund may invest differ from those of traditional debt securities. Among the major differences are that the interest and principal payments are made more frequently on mortgage- and asset-backed securities (usually monthly) and that principal may be prepaid at any time because the underlying mortgage loans or other assets generally may be prepaid at any time. As a result, if a Fund purchases those securities at a premium, a prepayment rate that is faster than expected will reduce their yield, while a prepayment rate that is slower than expected will have the opposite effect of increasing yield. If the Fund purchases these securities at a discount, faster than expected prepayments will increase their yield, while slower than expected prepayments will reduce their yield. Amounts available for reinvestment by a Fund are likely to be greater during a period of declining interest rates and, as a result, are likely to be reinvested at lower interest rates than during a period of rising interest rates.

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In general, the prepayment rate for mortgage-backed securities decreases as interest rates rise and increases as interest rates fall. However, rising interest rates will tend to decrease the value of these securities. In addition, an increase in interest rates may affect the volatility of these securities by effectively changing a security that was considered a short-term security at the time of purchase into a long-term security. Long-term securities generally fluctuate more widely in response to changes in interest rates than short- or medium-term securities.

The market for privately issued mortgage- and asset-backed securities is smaller and less liquid than the market for U.S. government mortgage-backed securities. A collateralized mortgage obligation ("CMO") may be structured in a manner that provides a wide variety of investment characteristics (yield, effective maturity, and interest rate sensitivity). As market conditions change, and especially during periods of rapid market interest rate changes, the ability of a CMO to provide the anticipated investment characteristics may be greatly diminished. Increased market volatility and/or reduced liquidity may result.

Each Fund may invest in each of collateralized bond obligations ("CBOs"), collateralized loan obligations ("CLOs"), other collateralized debt obligations ("CDOs"), and other similarly structured securities. CBOs, CLOs, and other CDOs are types of asset-backed securities. A CBO is a trust that is often backed by a diversified pool of high risk, below-investment-grade fixed-income securities. The collateral can be from many different types of fixed-income securities, such as high yield debt, residential privately issued mortgage-related securities, commercial privately issued mortgage-related securities, trust preferred securities, and emerging market debt. A CLO is a trust typically collateralized by a pool of loans, which may include, among others, domestic and foreign senior secured loans, senior unsecured loans, and subordinate corporate loans, including loans that may be rated below investment grade or equivalent unrated loans. Other CDOs are trusts backed by other types of assets representing obligations of various parties. CBOs, CLOs, and other CDOs may charge management fees and administrative expenses.

**Short Sales**

A short sale involves the sale by a fund of a security that it does not own with the expectation of covering settlement by purchasing the same security at a later date at a lower price. A fund may also enter into a short position by using a derivative instrument, such as a future, forward, or swap agreement. If the price of the security or derivative increases prior to the time the fund is required to replace the borrowed security, then the fund will incur a loss equal to the increase in price from the time that the short sale was entered into plus any premiums and interest paid to the broker. Therefore, short sales involve the risk that losses may be exaggerated, potentially losing more money than the value of the investment.

A "short sale against the box" is a technique that involves selling either a security owned by a fund, or a security equivalent in kind and amount to the security sold short that the fund has the right to obtain, at no additional cost, for delivery at a specified date in the future. Each fund may enter into a short sale against the box to hedge against anticipated declines in the market price of portfolio securities. If the value of the securities sold short against the box increases prior to the scheduled delivery date, a fund will lose money.

**Special Purpose Acquisition Companies ("SPACs")**

Each Fund may invest in securities of special purpose acquisition companies ("SPACs") or similar special purpose entities that pool funds to seek potential acquisition opportunities. Unless and until an acquisition is completed, a SPAC or similar entity generally maintains assets (less a portion retained to cover expenses) in a trust account comprised of U.S. government securities, money market securities, and cash, and similar investments whose returns or yields may be significantly lower than those of the Fund's other investments. Because SPACs and similar entities are in essence blank-check companies without an operating history or ongoing business other than seeking acquisitions, the value of their securities is particularly dependent on the ability of the entity's management to identify and complete a profitable acquisition, which may not occur. For example, even if an acquisition or merger target is identified, the Fund may elect not to participate in, or vote to approve, the proposed transaction. Moreover, an acquisition or merger once effected may prove unsuccessful and an investment in the SPAC may lose value.

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SPACs are also subject to the following additional risks:

• The risk that, in the case of SPACs used as an opportunity for startups to go public without going through the traditional IPO process, such startups may become publicly traded with potentially less due diligence than what is typical in a traditional IPO through an underwriter and may not be experienced in facing the challenges, expenses and risks of being a public company, including the increased regulatory and financial scrutiny and the need to comply with applicable governance and accounting requirements.

• SPAC sponsors may have a potential conflict of interest to complete a deal that may be unfavorable for other investors in the SPAC. For example, SPAC sponsors often own warrants to acquire additional shares of the company at a fixed price, and the exercise by the SPAC sponsor of its warrants may dilute the value of the equity interests of other investors in the SPAC.

• Some SPACs may pursue acquisitions only within certain industries or regions, which may increase the volatility of their prices.

• Only a thinly traded market for shares of or interests in a SPAC may develop, or there may be no market at all, leaving the Fund unable to sell its interest in a SPAC or to sell its interest only at a lower price. Investments in SPACs may include private placements, including PIPEs, and, accordingly, may be considered illiquid and/or be subject to restrictions on resale.

• Values of investments in SPACs may be highly volatile and may depreciate significantly over time.

**Supranational Entities**

Each Fund may invest in obligations of supranational entities. A supranational entity is an entity designated or supported by national governments to promote economic reconstruction, development or trade amongst nations. Examples of supranational entities include the International Bank for Reconstruction and Development (also known as the World Bank) and the European Investment Bank. Obligations of supranational entities are subject to the risk that the governments on whose support the entity depends for its financial backing or repayment may be unable or unwilling to provide that support. Obligations of a supranational entity that are denominated in foreign currencies will also be subject to the risks associated with investments in foreign currencies.

**Synthetic Securities**

Incidental to other transactions in fixed income securities and/or for investment purposes, a Fund also may combine options on securities with cash, cash equivalent investments or other fixed income securities in order to create "synthetic" securities which approximate desired risk and return profiles. This may be done where a "non-synthetic" security having the desired risk/return profile either is unavailable (e.g., short-term securities of certain non-U.S. governments) or possesses undesirable characteristics (e.g., interest payments on the security would be subject to non-U.S. withholding taxes). A Fund also may purchase forward non-U.S. exchange contracts in conjunction with U.S. dollar-denominated securities in order to create a synthetic non-U.S. currency denominated security which approximates desired risk and return characteristics where the non-synthetic securities either are not available in non-U.S. markets or possess undesirable characteristics. The use of synthetic bonds and other synthetic securities may involve risks different from, or potentially greater than, risks associated with direct investments in securities and other assets. Synthetic securities may increase other Fund risks, including market risk, liquidity risk, and credit risk, and their value may or may not correlate with the value of the relevant underlying asset.

**Temporary Defensive Measures/Money Market Instruments**

The Government Money Market and Money Market Funds invest all of their available assets in money market instruments maturing in 397 days or less, with certain exceptions permitted by applicable regulations. In addition, each Fund may make money market investments (cash equivalents), without limit, pending other investment or settlement, for liquidity, or in adverse market conditions. Following are descriptions of the types of money market instruments that each Fund may purchase:

• U.S. Government Securities - Securities issued or guaranteed by the U.S. government, including treasury bills, notes, and bonds.

• U.S. Government Agency Securities - Obligations issued or guaranteed by agencies or instrumentalities of the U.S. government.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S. agency obligations include, but are not limited to, the Bank for Cooperatives, Federal Home Loan Banks, and Federal Intermediate Credit Banks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• U.S. instrumentality obligations include, but are not limited to, the Export-Import Bank, Federal Home Loan Mortgage Corporation, and Federal National Mortgage Association.

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Some obligations issued or guaranteed by U.S. government agencies and instrumentalities are supported by the full faith and credit of the U.S. Treasury. Others, such as those issued by the Federal National Mortgage Association, are supported by discretionary authority of the U.S. government to purchase certain obligations of the agency or instrumentality. Still others, such as those issued by the Student Loan Marketing Association, are supported only by the credit of the agency or instrumentality.

• Bank Obligations - Certificates of deposit, time deposits and bankers' acceptances of U.S. commercial banks having total assets of at least one billion dollars and overseas branches of U.S. commercial banks and foreign banks, which in the opinion of those managing the fund's investments, are of comparable quality. A Fund may acquire obligations of U.S. banks that are not members of the Federal Reserve System or of the Federal Deposit Insurance Corporation.

Certificates of deposit are negotiable certificates issued against funds deposited in a commercial bank for a definite period of time and earning a specified return. Bankers' acceptances are negotiable drafts or bills of exchange, normally drawn by an importer or exporter to pay for specific merchandise, which are "accepted" by a bank, meaning, in effect, that the bank unconditionally agrees to pay the face value of the instrument on maturity. Fixed time deposits are bank obligations payable at a stated maturity date and bearing interest at a fixed rate. Fixed time deposits may be withdrawn on demand by the investor, but may be subject to early withdrawal penalties which vary depending upon market conditions and the remaining maturity of the obligation. There are no contractual restrictions on the right to transfer a beneficial interest in a fixed time deposit to a third party, although there is no market for such deposits.

Obligations of foreign banks and obligations of overseas branches of U.S. banks are subject to somewhat different regulations and risks than those of U.S. domestic banks. For example, an issuing bank may be able to maintain that the liability for an investment is solely that of the overseas branch which could expose a Fund to a greater risk of loss. In addition, obligations of foreign banks or of overseas branches of U.S. banks may be affected by governmental action in the country of domicile of the branch or parent bank. Examples of adverse foreign governmental actions include the imposition of currency controls, the imposition of withholding taxes on interest income payable on such obligations, interest limitations, seizure or nationalization of assets, or the declaration of a moratorium. Deposits in foreign banks or foreign branches of U.S. banks are not covered by the Federal Deposit Insurance Corporation and that the selection of those obligations may be more difficult because there may be less publicly available information concerning foreign banks or the accounting, auditing and financial reporting standards, practices and requirements applicable to foreign banks may differ from those applicable to United States banks. Foreign banks are not generally subject to examination by any United States Government agency or instrumentality. A Fund only buys short-term instruments where the risks of adverse governmental action are believed by those managing the fund's investments to be minimal. A Fund considers these factors, along with other appropriate factors, in making an investment decision to acquire such obligations. It only acquires those which, in the opinion of management, are of an investment quality comparable to other debt securities bought by the Fund.

A certificate of deposit is issued against funds deposited in a bank or savings and loan association for a definite period of time, at a specified rate of return. Normally they are negotiable. However, a Fund occasionally may invest in certificates of deposit which are not negotiable. Such certificates may provide for interest penalties in the event of withdrawal prior to their maturity. A bankers' acceptance is a short-term credit instrument issued by corporations to finance the import, export, transfer, or storage of goods. They are termed "accepted" when a bank guarantees their payment at maturity and reflect the obligation of both the bank and drawer to pay the face amount of the instrument at maturity.

• Commercial Paper - Short-term promissory notes issued by U.S. or foreign corporations.

• Short-term Corporate Debt - Corporate notes, bonds, and debentures that at the time of purchase have 397 days or less remaining to maturity, with certain exceptions permitted by applicable regulations.

• Repurchase Agreements - Instruments under which securities are purchased from a bank or securities dealer with an agreement by the seller to repurchase the securities at the same price plus interest at a specified rate.

• Taxable Municipal Obligations - Short-term obligations issued or guaranteed by state and municipal issuers which generate taxable income.

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**U.S. Government and U.S. Government-Sponsored Securities**

U.S. government securities refers to a variety of debt securities issued by or guaranteed by the U.S. Treasury, such as Treasury bills, notes, and bonds and mortgage-backed securities guaranteed by the Government National Mortgage Association (Ginnie Mae), and are supported by the full faith and credit of the United States meaning that the U.S. government is required to repay the principal in the event of default. Others are supported by the right of the issuer to borrow from the U.S. Treasury; others are supported by the discretionary authority of the U.S. government to purchase the agency's obligations; and still others are supported only by the credit of the issuing agency, instrumentality, or enterprise. The U.S. government does not guarantee the market price of any U.S. government security.

Although U.S. government-sponsored enterprises such as the Federal Home Loan Mortgage Corporation (Freddie Mac) and the Federal National Mortgage Association (Fannie Mae) may be chartered or sponsored by Congress, they are not funded by Congressional appropriations, and their securities are not issued by the U.S. Treasury nor supported by the full faith and credit of the U.S. government.

U.S. government securities and U.S. government-sponsored securities may be adversely impacted by changes in interest rates or a default by or decline in the credit rating of the applicable government-sponsored entity. There is no assurance that the U.S. government would provide financial support to its agencies and instrumentalities if not required to do so. In addition, certain governmental entities have been subject to regulatory scrutiny regarding their accounting policies and practices and other concerns that may result in legislation, changes in regulatory oversight, and/or other consequences that could adversely affect the credit quality, availability, or investment character of securities issued by these entities. The value and liquidity of U.S. government securities may be affected adversely by changes in the ratings of those securities.

**Warrants and Rights**

The Funds may invest in warrants and rights. A warrant is an instrument that gives the holder a right to purchase a given number of shares of a particular security at a specified price until a stated expiration date. Buying a warrant generally can provide a greater potential for profit or loss than an investment of equivalent amounts in the underlying common stock. The market value of a warrant does not necessarily move with the value of the underlying securities. If a holder does not sell the warrant, it risks the loss of its entire investment if the market price of the underlying security does not, before the expiration date, exceed the exercise price of the warrant. Investment in warrants is a speculative activity. Warrants pay no dividends and confer no rights (other than the right to purchase the underlying securities) with respect to the assets of the issuer. A right is a privilege granted to existing shareholders of a corporation to subscribe for shares of a new issue of common stock before it is issued. Rights normally have a short life, usually two to four weeks, are freely transferable and entitle the holder to buy the new common stock at a lower price than the public offering price.

**When-Issued, Delayed Delivery, and Forward Commitment Transactions**

Each of the Funds may purchase or sell securities on a when-issued, delayed delivery, or forward commitment basis. Typically, no income accrues on securities a Fund has committed to purchase prior to the time delivery of the securities is made.

When purchasing a security on a when-issued, delayed delivery, or forward commitment basis, the Fund assumes the rights and risks of ownership of the security, including the risk of price and yield fluctuations, and takes such fluctuations into account when determining its net asset value. Because the Fund is not required to pay for the security until the delivery date, these risks are in addition to the risks associated with the Fund's other investments. If the Fund remains substantially fully invested at a time when when-issued, delayed delivery, or forward commitment purchases are outstanding, the purchases may result in a form of leverage.

When the Fund has sold a security on a when-issued, delayed delivery, or forward commitment basis, the Fund does not participate in future gains or losses with respect to the security. If the other party to a transaction fails to deliver or pay for the securities, the Fund could miss a favorable price or yield opportunity or could suffer a loss. A Fund may dispose of or renegotiate a transaction after it is entered into, and may sell when-issued, delayed delivery, or forward commitment securities before they are delivered, which may result in a capital gain or loss. There is no percentage limitation on the extent to which the Funds may purchase or sell securities on a when-issued, delayed delivery, or forward commitment basis.

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**LEADERSHIP STRUCTURE AND BOARD**

PFI's Board has overall responsibility for overseeing PFI's operations in accordance with the 1940 Act, other applicable laws, and PFI's charter. Each Board Member serves on the Boards of the following investment companies: Principal Funds, Inc. ("PFI"), Principal Variable Contracts Funds, Inc. ("PVC"), and Principal Exchange-Traded Funds ("PETF"), which are collectively referred to in this SAI as the "Principal Funds." The Principal Funds are part of a "Fund Complex," which is comprised of the Principal Funds (PFI, PVC, and PETF), Principal Real Asset Fund, and Principal Private Credit Fund. Board Members who are affiliated persons of any investment advisor, the principal distributor, or the principal underwriter of the Principal Funds are considered "interested persons" of the Funds (as defined in the 1940 Act) and are referred to in this SAI as "Interested Board Members." Board Members who are not Interested Board Members are referred to as "Independent Board Members."

Each Board Member generally serves until the next annual meeting of shareholders or until such Board Member's earlier death, resignation, or removal. Independent Board Members have a 72-year age limit and, for Independent Board Members elected on or after September 14, 2021, a 72-year age limit or a 15-year term limit, whichever occurs first. The Board may waive the age or term limits in the Board's discretion. The Board elects officers to supervise the day-to-day operations of the Principal Funds. Officers serve at the pleasure of the Board, and each officer has the same position with each investment company in the Principal Funds.

The Board meets in regularly scheduled meetings throughout the year. Board meetings may occur in-person, by telephone, or virtually. In addition, the Board holds special meetings or informal conference calls to discuss specific matters that may arise or require action between regular meetings. Independent Board Members also meet annually to consider renewal of advisory contracts.

The Chairman of the Board is an interested person of the Principal Funds. The Independent Board Members have appointed a Lead Independent Board Member whose role is to review and approve, with the Chairman, each Board meeting's agenda and to facilitate communication between and among the Independent Board Members, management, and the full Board. The Board's leadership structure is appropriate for the Principal Funds given its characteristics and circumstances, including the number of portfolios, variety of asset classes, net assets, and distribution arrangements. The appropriateness of this structure is enhanced by the establishment and allocation of responsibilities among the following Committees, which report their activities to the Board on a regular basis.

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| **Committee Members** | **Primary Purpose and Responsibilities** | **Meetings Held During the Last Fiscal Year** |
| <u>15(c) Committee</u><br>Padelford L. Lattimer, Chair<br>Katharin S. Dyer<br>Karen McMillan | The Committee's primary purpose is to assist the Board in performing the annual review of the Funds' advisory and sub-advisory agreements pursuant to Section 15(c) of the 1940 Act. The Committee is responsible for requesting and reviewing related materials. | 3 |
| <u>Audit Committee</u><br>Frances P. Grieb, Chair<br>Craig Damos<br>Victor L. Hymes<br>Sharmila C. Kassam | The Committee's primary purpose is to assist the Board by serving as an independent and objective party to monitor the Principal Funds' accounting policies, financial reporting, and internal control system, as well as the work of the independent registered public accountants. The Audit Committee assists Board oversight of 1) the integrity of the Principal Funds' financial statements; 2) the Principal Funds' compliance with certain legal and regulatory requirements; 3) the independent registered public accountants' qualifications and independence; and 4) the performance of the Principal Funds' independent registered public accountants. The Audit Committee also facilitates communication among the independent registered public accountants, PGI's internal auditors, Principal Funds management, and the Board. | 8 |
| <u>Executive Committee</u><br>Kamal Bhatia, Chair<br>Craig Damos<br>Kenneth A. McCullum | The Committee's primary purpose is to exercise certain powers of the Board when the Board is not in session. When the Board is not in session, the Committee may exercise all powers of the Board in the management of the Principal Funds' business except the power to 1) issue stock, except as permitted by law; 2) recommend to the shareholders any action that requires shareholder approval; 3) amend the bylaws; or 4) approve any merger or share exchange that does not require shareholder approval. |  |
| <u>Nominating and</u> <br><u>Governance Committee</u><br>Victor L. Hymes, Chair<br>Craig Damos<br>Frances P. Grieb<br>Thomas A. Swank | The Committee's primary purpose is to oversee the structure and efficiency of the Board and the committees. The Committee is responsible for evaluating Board membership and functions, committee membership and functions, insurance coverage, and legal matters. The Committee's nominating functions include selecting and nominating Independent Board Member candidates for election to the Board. Generally, the Committee requests nominee suggestions from Board Members and management. In addition, the Committee considers candidates recommended by shareholders of the Principal Funds. Recommendations should be submitted in writing to the Principal Funds Secretary, in care of the Principal Funds, 711 High Street, Des Moines, IA 50392. Such recommendations must include all information specified in the Committee's charter and must conform with the procedures set forth in Appendix A thereto, which can be found at https://secure02.principal.com/publicvsupply/GetFile?fm=MM13013&ty=VOP&EXT=.VOP. Examples of such information include the nominee's biographical information; relevant educational and professional background of the nominee; the number of shares of each Fund owned of record and beneficially by the nominee and by the recommending shareholder; any other information regarding the nominee that would be required to be disclosed in a proxy statement or other filing required to be made in connection with the solicitation of proxies for the election of board members; whether the nominee is an "interested person" of the Funds as defined in the 1940 Act; and the written consent of the nominee to be named as a nominee and serve as a board member if elected.<br>When evaluating a potential nominee for Independent Board Member, the Committee may consider, among other factors: educational background; relevant business and industry experience; whether the person is an "interested person" of the Funds as defined in the 1940 Act; and whether the person is willing to serve, and willing and able to commit the time necessary to attend meetings and perform the duties of an Independent Board Member. In addition, the Committee may consider whether a candidate's background, experience, skills and views would complement the background, experience, skills and views of other Board Members and would contribute to the diversity of the Board. The final decision is based on a combination of factors, including the strengths and the experience an individual may bring to the Board. The Board does not regularly use the services of professional search firms to identify or evaluate potential candidates or nominees. | 5 |
| <u>Operations Committee</u><br>Thomas A. Swank, Chair<br>Katharin S. Dyer<br>Padelford L. Lattimer | The Committee's primary purpose is to review and oversee the provision of administrative and distribution services to the Principal Funds, communications with the Principal Funds' shareholders, and the Principal Funds' operations. | 4 |

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Risk oversight forms part of the Board's general oversight of the Principal Funds. The Board has appointed a Chief Compliance Officer who oversees the implementation and testing of the Funds' compliance program and reports to the Board regarding compliance matters for the Principal Funds and principal service providers. As part of its regular oversight functions, the Board, directly or through a committee, interacts with and reviews reports from, among others, management, sub-advisors, the Chief Compliance Officer, the independent registered public accounting firm, and internal auditors for PGI or its affiliates, as appropriate. The Board, with the assistance of management and PGI, reviews investment policies and risks in connection with its review of Principal Funds performance. In addition, as part of the Board's periodic review of advisory, sub-advisory, and other service provider agreements, the Board may consider risk management aspects of their operations and the functions for which they are responsible. With respect to valuation, the Board has designated PGI as the Funds' valuation designee, as permitted by SEC Rule 2a-5, where PGI is responsible for the day-to-day valuation and oversight responsibilities of the Funds, subject to the Board's oversight. PGI has established a Valuation Committee to fulfill its oversight responsibilities as the Funds' valuation designee.

Each Board Member has significant prior senior management and/or board experience. Board Members are selected and retained based upon their skills, experience, judgment, analytical ability, diligence, and ability to work effectively with other Board Members, a commitment to the interests of shareholders, and, for each Independent Board Member, a demonstrated willingness to take an independent and questioning view of management. In addition to these general qualifications, the Board seeks members who build upon the Board's diversity. Below is a brief discussion of the specific education, experience, qualifications, or skills that led to the conclusion that each person identified below should serve as a Board Member. As required by rules adopted under the 1940 Act, the Independent Board Members select and nominate all candidates for Independent Board Member positions.

<u>Independent Board Members</u>

**Craig Damos.** Mr. Damos has served as an Independent Board Member of the Principal Funds since 2008. Since 2011, Mr. Damos has served as the President of C.P. Damos Consulting, LLC (doing business as Craig Damos Consulting). He has also served as a Director of the employees' stock ownership plan of the Baker Group since 2020. Mr. Damos served as President and Chief Executive Officer of Weitz Company from 2006 to 2010; Vertical Growth Officer of Weitz Company from 2004 to 2006; and Chief Financial Officer of Weitz Company from 2000 to 2004. From 2005 to 2008, Mr. Damos served as a Director of West Bank. Through his education, employment experience, and experience as a board member, Mr. Damos is experienced with financial, accounting, regulatory, and investment matters.

**Katharin S. Dyer.** Ms. Dyer has served as an Independent Board Member of the Principal Funds since 2023. She is the Founder and Chief Executive Officer of PivotWise, a firm providing strategic advice focused on digital transformation. Ms. Dyer currently serves as a Director of Liquidity Services and the Grameen Foundation. She was formerly employed by IBM Global Services as a Global Partner and a member of the senior leadership team from 2016 to 2018. Ms. Dyer was a member of the Global Management Team at American Express Company from 2013 to 2015. Through her education, employment experience, and experience as a board member, Ms. Dyer is experienced with financial, information and digital technology, investment, and regulatory matters.

**Frances P. Grieb.** Ms. Grieb has served as an Independent Board Member of the Principal Funds since 2023. Ms. Grieb currently serves as a Director of the National Advisory Board of the College of Business at the University of Nebraska at Omaha. She is a member of the American Institute of Certified Public Accountants and the National Association of Corporate Directors. From 2022 to 2025, she served as a director of First Interstate BancSystem, Inc. and from 2014 to 2022, she served as a Director of Great Western Bancorp, Inc. Ms. Grieb is a retired partner having served in various leadership roles at Deloitte LLP from 1982 to 2010. Ms. Grieb is a retired Certified Public Accountant. Through her education, employment experience, and experience as a board member, Ms. Grieb is experienced with financial, accounting, investment, and regulatory matters.

**Victor L. Hymes.** Mr. Hymes has served as an Independent Board Member of the Principal Funds since 2020. He currently serves as Founder, Chief Executive Officer, and Chief Investment Officer of Legato Capital Management, LLC. Over the past thirty years, Mr. Hymes has served in the roles of Chief Executive Officer, Chief Operating Officer, Chief Investment Officer, portfolio manager, and other senior management positions with investment management firms, including Zurich Scudder Investments, Inc., Goldman, Sachs & Co., and Kidder, Peabody & Co. Mr. Hymes has served on numerous boards and has chaired four investment committees over the past two decades. Through his education, employment experience, and experience as a board member, Mr. Hymes is experienced with financial, accounting, regulatory, and investment matters.

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**Sharmila C. Kassam.** Ms. Kassam has served as an Independent Board Member of the Principal Funds since 2025. She is the Founder of Aligned Capital Investing, LLC. Ms. Kassam served as Vice President and Head of Asset Owner Solutions at Nasdaq, Inc. from 2021 to 2023. From 2014 to 2019, Ms. Kassam served as Deputy Chief Investment Officer, Texas Employees Retirement Fund. Ms. Kassam is a licensed attorney and Certified Public Accountant. She is also faculty for the Institutional Limited Partner Association Institute. Through her education, employment experience, and experience as a board member, Ms. Kassam is experienced in financial, regulatory, accounting, and investment matters.

**Padelford L. Lattimer.** Mr. Lattimer has served as an Independent Board Member of the Principal Funds since 2020. He currently serves as Managing Partner for TBA Management Consulting LLC. For more than twenty years, Mr. Lattimer served in various capacities at financial services companies, including as a senior managing director for TIAA Cref Asset Management (2004-2010), First Vice President at Mellon Financial Corporation (2002-2004), and in product management roles at Citibank (2000-2002). Through his education, employment experience, and experience as a board member, Mr. Lattimer is experienced with financial, regulatory, and investment matters.

**Karen McMillan.** Ms. McMillan has served as an Independent Board Member of the Principal Funds since 2014. She served as a Managing Director of Patomak Global Partners, LLC from 2014 to 2021. From 2007 to 2014, Ms. McMillan served as General Counsel to the Investment Company Institute. Prior to that (from 1999-2007), she worked as an attorney in private practice, specializing in the mutual fund industry. From 1991 to 1999, she served in various roles as counsel at the SEC, Division of Investment Management, including as Assistant Chief Counsel. Through her professional education, experience as an attorney, and experience as a board member, Ms. McMillan is experienced in financial, investment, and regulatory matters.

**Thomas A. Swank.** Mr. Swank has served as an Independent Board Member of the Principal Funds since 2024. From 2015 to 2023, Mr. Swank served as the Chief Executive Officer and President of Wellabe, formerly American Enterprise Group, Inc. He has served as the Chairman of the Board for Wellabe since 2023 and as a Director since 2015. Mr. Swank has also served as a Director on the Director Forum 500 - American Council of Life Insurers since 2015. Through his education, employment experience, and experience as a board member, Mr. Swank is experienced with financial, accounting, regulatory, and investment matters.

<u>Interested Board Members</u>

**Kamal Bhatia.** Mr. Bhatia has served as Chair of the Principal Funds since 2023. He has also served as President and Chief Executive Officer of the Principal Funds since 2019. Since February 2024, Mr. Bhatia has served as the President and Chief Executive Officer for Principal Asset Management<sup>SM</sup>. He served as Senior Executive Managing Director - Global Head of Investments for Principal Asset Management<sup>SM</sup> in 2023 and a Senior Executive Director and Chief Operating Officer of Principal Asset Management<sup>SM</sup> from 2019 to 2023. Mr. Bhatia joined Principal<sup>®</sup> in 2019 and serves as a director of numerous Principal<sup>®</sup> affiliates. From 2011 to 2019, he was a Senior Vice President for Oppenheimer Funds. Mr. Bhatia is a CFA<sup>®</sup> charter holder. Through his education and experience, Mr. Bhatia is experienced with financial, marketing, regulatory, and investment matters.

**Kenneth A. McCullum.** Mr. McCullum has served as a Board Member of the Principal Funds since 2023. Mr. McCullum has served as Executive Vice President and Chief Risk Officer for Principal<sup>®</sup> since 2023. Prior to that, he served as Senior Vice President and Chief Risk Officer for Principal<sup>®</sup> from 2020 to 2023 and Vice President and Chief Actuary for Principal<sup>®</sup> from 2015 to 2020. From 2013 to 2015, Mr. McCullum was an Executive Vice President responsible for business development at Delaware Life Insurance Company. He served as a Senior Vice President for the life annuity business at Sun Life from 2010 to 2013. Mr. McCullum is a Fellow of the Society of Actuaries and is a Member of the American Academy of Actuaries. Through his education and experience, Mr. McCullum is experienced with financial, accounting, regulatory, and investment matters.

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**Additional Information Regarding Board Members and Officers**

The following tables present additional information regarding the Board Members and Principal Funds officers, including their principal occupations, which, unless specific dates are shown, are of more than five years duration. For each Board Member, the tables also include information concerning other directorships held in reporting companies under the Securities Exchange Act of 1934 or registered investment companies under the 1940 Act.

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| | | | | |
|:---|:---|:---|:---|:---|
| **INDEPENDENT BOARD MEMBERS** | **INDEPENDENT BOARD MEMBERS** | **INDEPENDENT BOARD MEMBERS** | **INDEPENDENT BOARD MEMBERS** | **INDEPENDENT BOARD MEMBERS** |
| **Name, Address,<br>and Year of Birth** | **Board Positions Held<br>with Principal Funds** | **Principal Occupation(s)<br>During Past 5 Years** | **Number of<br>Portfolios<br>Overseen<br>in Fund<br>Complex** | **Other<br>Directorships<br>Held During<br>Past 5 Years** |
| Craig Damos<br>711 High Street<br>Des Moines, IA 50392<br>1954 | Lead Independent Board Member<br> (since 2020)<br>Director, PFI and PVC (since 2008)<br>Trustee, PETF (since 2014) | President, C.P. Damos Consulting,<br> LLC (consulting services) | 122 | Principal Real Asset Fund<br> (2019-2024) |
| Katharin S. Dyer<br>711 High Street<br>Des Moines, IA 50392<br>1957 | Director, PFI and PVC (since 2023)<br>Trustee, PETF (since 2023) | Founder and Chief Executive Officer,<br> PivotWise (consulting services) | 122 | Liquidity Services, Inc.<br> (2020-present);<br>Principal Real Asset Fund<br> (2023-2024) |
| Frances P. Grieb<br>711 High Street<br>Des Moines, IA 50392<br>1960 | Director, PFI and PVC (since 2023)<br>Trustee, PETF (since 2023) | Retired | 122 | First Interstate BancSystem,<br> Inc. (2022-2025);<br>Principal Real Asset Fund<br> (2023-2024);<br>Great Western Bancorp, Inc.<br> and Great Western Bank <br> (2014-2022) |
| Victor L. Hymes<br>711 High Street<br>Des Moines, IA 50392<br>1957 | Director, PFI and PVC (since 2020) <br>Trustee, PETF (since 2020) | Founder, CEO, CIO, Legato Capital<br> Management, LLC (investment<br> management company) | 122 | Principal Real Asset Fund <br> (2020-2024) |
| Sharmila C. Kassam<br>711 High Street<br>Des Moines, IA 50392<br>1973 | Director, PFI and PVC (since 2025)<br>Trustee, PETF (since 2025) | Founder and Consultant, Aligned<br> Capital Investing, LLC <br> (consulting services);<br>Vice President and Head of Asset<br> Owner Solutions, Nasdaq, Inc.<br> (financial services) from 2021-2023 | 122 | Calamos Aksia Private <br> Market Funds (2023-2025);<br>Greenbacker Energy <br> (GREC II Fund) (2022-2025);<br>GRIID Infrastructure<br> (2024-2024);<br>Foundation Credit<br> Opportunities (2019-2023) |
| Padelford L. Lattimer<br>711 High Street<br>Des Moines, IA 50392<br>1961 | Director, PFI and PVC (since 2020) <br>Trustee, PETF (since 2020) | Managing Partner, TBA Management<br> Consulting LLC (management<br> consulting and staffing company) | 122 | Principal Real Asset Fund <br> (2020-2024) |
| Karen McMillan<br>711 High Street<br>Des Moines, IA 50392<br>1961 | Director, PFI and PVC (since 2014)<br>Trustee, PETF (since 2014) | Founder/Owner, Tyche Consulting<br> LLC (consulting services) <br> from 2021-2024;<br>Managing Director, Patomak Global<br> Partners, LLC (financial services<br> consulting) from 2014-2021 | 122 | Principal Real Asset Fund <br> (2019-2024) |
| Thomas A. Swank<br>711 High Street<br>Des Moines, IA 50392<br>1960 | Director, PFI and PVC (since 2024)<br>Trustee, PETF (since 2024) | Chief Executive Officer and President,<br> Wellabe (formerly, American<br> Enterprise Group, Inc.) (life and<br> health insurance) from 2015-2023 | 122 | Wellabe (formerly, American<br> Enterprise Group, Inc.)<br> (2015-present); <br>Principal Real Asset Fund <br> (2024) |

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| | | | | |
|:---|:---|:---|:---|:---|
| **INTERESTED BOARD MEMBERS** | **INTERESTED BOARD MEMBERS** | **INTERESTED BOARD MEMBERS** | **INTERESTED BOARD MEMBERS** | **INTERESTED BOARD MEMBERS** |
| **Name, Address,<br>and Year of Birth** | **Board Positions Held<br>with Principal Funds** | **Principal Occupation(s)<br>During Past 5 Years** | **Number of<br>Portfolios<br>Overseen<br>in Fund<br>Complex** | **Other<br>Directorships<br>Held During<br>Past 5 Years** |
| Kamal Bhatia<br>711 High Street<br>Des Moines, IA 50392<br>1972 | Director and Chair, PFI and PVC<br> (since 2023)<br>Trustee and Chair, PETF<br> (since 2023)<br>Chief Executive Officer and<br> President (since 2019) | <u>Principal Financial Group\*</u><br>President and Chief Executive Officer –<br>&nbsp;&nbsp;&nbsp;&nbsp;Principal Asset Management<sup>SM</sup> <br>&nbsp;&nbsp;&nbsp;&nbsp;(since 2024)<br>Senior Executive Managing Director - <br>&nbsp;&nbsp;&nbsp;&nbsp;Global Head of Investments – <br>&nbsp;&nbsp;&nbsp;&nbsp;Principal Asset Management<sup>SM</sup> (2023)<br>Senior Executive Director and <br>&nbsp;&nbsp;&nbsp;&nbsp;Chief Operating Officer – <br>&nbsp;&nbsp;&nbsp;&nbsp;Principal Asset Management<sup>SM</sup> <br>&nbsp;&nbsp;&nbsp;&nbsp;(2019-2023) | 122 | Principal Real Asset<br> Fund (2023-2024) |
| Kenneth A. McCullum<br>711 High Street<br>Des Moines, IA 50392<br>1964 | Director, PFI and PVC (since 2023)<br>Trustee, PETF (since 2023) | Principal Financial Group\*<br>Executive Vice President and <br>&nbsp;&nbsp;&nbsp;&nbsp;Chief Risk Officer (since 2023)<br>Senior Vice President and Chief Risk Officer<br>&nbsp;&nbsp;&nbsp;&nbsp;(2020-2023) | 122 | Principal Real Asset<br> Fund (2023-2024) |

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| | | |
|:---|:---|:---|
| **PRINCIPAL FUNDS OFFICERS** | **PRINCIPAL FUNDS OFFICERS** | **PRINCIPAL FUNDS OFFICERS** |
| **Name, Address,<br>and Year of Birth** | **Position(s) Held<br>with Principal Funds** | **Principal Occupation(s)** <br>**During Past 5 Years** |
| George Djurasovic<br>711 High Street<br>Des Moines, IA 50392<br>1971 | Vice President and General Counsel <br> (since 2023) | <u>Principal Financial Group\*</u><br>Vice President and General Counsel – Principal Asset <br>&nbsp;&nbsp;&nbsp;&nbsp;Management<sup>SM</sup> (since 2022)<br><u>Artisan Partners Limited Partnership</u><br>Global Chief Compliance Officer (2013-2022) |
| Calvin Eib<br>711 High Street<br>Des Moines, IA 50392<br>1963 | Assistant Tax Counsel (since 2023) | <u>Principal Financial Group</u>\*<br>Assistant General Counsel (since 2025)<br>Counsel (2021-2025) |
| Megan Hoffmann<br>711 High Street<br>Des Moines, IA 50392 <br>1979 | Vice President and Treasurer (since 2025)<br>Vice President and Controller (2021-2025) | <u>Principal Financial Group\*</u><br>Senior Director – Fund Accounting and Administration <br>&nbsp;&nbsp;&nbsp;&nbsp;(since 2025)<br>Senior Director – Fund Administration (2024)<br>Director – Accounting (2020-2024) |
| Laura B. Latham<br>711 High Street<br>Des Moines, IA 50392 <br>1986 | Counsel and Assistant Secretary (since 2023)<br>Assistant Counsel and Assistant Secretary<br> (2018-2023) | <u>Principal Financial Group\*</u><br>Assistant General Counsel (since 2025)<br>Counsel (2018-2025) |
| Ann Meiners<br>711 High Street<br>Des Moines, IA 50392 <br>1977 | Vice President and Assistant Treasurer <br> (since 2025)<br>Vice President and Assistant Controller <br> (2025) | <u>Principal Financial Group\*</u><br>Director – Fund Accounting (since 2024)<br>Assistant Director – Fund Accounting (2017-2024) |
| David P. Michalik<br>711 High Street<br>Des Moines, IA 50392 <br>1991 | Counsel and Assistant Secretary (since 2025) | <u>Principal Financial Group\*</u><br>Counsel (since 2025)<br><u>The Northern Trust Company</u><br>Second Vice President (2019-2025) |
| Diane K. Nelson<br>711 High Street<br>Des Moines, IA 50392<br>1965 | AML Officer (since 2016) | <u>Principal Financial Group\*</u><br>Director – Compliance (since 2024) <br>Chief Compliance Officer/AML Officer (2015-2024) |
| Tara Parks<br>711 High Street<br>Des Moines, IA 50392<br>1983 | Vice President and Assistant Treasurer <br>&nbsp;&nbsp;&nbsp;&nbsp;(since 2025)<br>Vice President and Assistant Controller <br>&nbsp;&nbsp;&nbsp;&nbsp;(2021-2025) | <u>Principal Financial Group\*</u><br>Senior Director – Fund Tax (since 2024)<br>Director – Accounting (2019-2024) |

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| | | |
|:---|:---|:---|
| **PRINCIPAL FUNDS OFFICERS** | **PRINCIPAL FUNDS OFFICERS** | **PRINCIPAL FUNDS OFFICERS** |
| **Name, Address,<br>and Year of Birth** | **Position(s) Held<br>with Principal Funds** | **Principal Occupation(s)** <br>**During Past 5 Years** |
| Deanna Y. Pellack<br>711 High Street<br>Des Moines, IA 50392<br>1987 | Counsel and Secretary (since 2024)<br>Counsel and Assistant Secretary (2023-2024)<br>Assistant Counsel and Assistant Secretary<br>&nbsp;&nbsp;&nbsp;&nbsp;(2022-2023) | <u>Principal Financial Group\*</u><br>Counsel (since 2022)<br><u>The Northern Trust Company</u><br>Vice President (2019-2022) |
| Sara L. Reece<br>711 High Street<br>Des Moines, IA 50392 <br>1975 | Vice President and Chief Operating Officer <br> (since 2021)<br>Vice President and Controller (2016-2021) | <u>Principal Financial Group\*</u><br>Managing Director – Global Head of Fund Services (since 2024)<br>Managing Director – Global Fund Ops (2021-2024) |
| Teri R. Root<br>711 High Street<br>Des Moines, IA 50392<br>1979 | Chief Compliance Officer (since 2018) | <u>Principal Financial Group\*</u><br>Chief Compliance Officer – Funds (since 2018)<br>Vice President (since 2015) |
| Michael Scholten<br>711 High Street<br>Des Moines, IA 50392<br>1979 | Chief Financial Officer (since 2021) | <u>Principal Financial Group\*</u><br>Assistant Vice President and Actuary (since 2021) |
| Adam U. Shaikh<br>711 High Street<br>Des Moines, IA 50392<br>1972 | Vice President and Assistant General Counsel<br>&nbsp;&nbsp;&nbsp;&nbsp;(since 2023)<br>Assistant Secretary (since 2022)<br>Assistant Counsel (2006-2023) | <u>Principal Financial Group\*</u><br>Associate General Counsel (since 2024)<br>Assistant General Counsel (2018-2024) |
| John L. Sullivan<br>711 High Street<br>Des Moines, IA 50392<br>1970 | Counsel and Assistant Secretary (since 2023)<br>Assistant Counsel and Assistant Secretary<br>&nbsp;&nbsp;&nbsp;&nbsp;(2019-2023) | <u>Principal Financial Group\*</u><br>Assistant General Counsel (since 2023)<br>Counsel (2019-2023) |
| Barbara Wenig<br>711 High Street<br>Des Moines, IA 50392<br>1972 | Vice President (since 2024) | <u>Principal Financial Group\*</u><br>Executive Managing Director – Chief Business Officer<br>&nbsp;&nbsp;&nbsp;&nbsp;(since 2025)<br>Executive Managing Director – Global Head of Operations and<br>&nbsp;&nbsp;&nbsp;&nbsp;Services - Principal Asset Management<sup>SM</sup> (2021-2024) |
| Brant K. Wong<br>711 High Street<br>Des Moines, IA 50392<br>1976 | Vice President (since 2025) | <u>Principal Financial Group\*</u><br>Head of Retirement Solutions (since 2025)<br><u>J.P. Morgan Asset Management</u><br>Head of Retirement Platforms and Strategy (2022-2025)<br>Head of Retirement Service, Product and National Accounts <br>&nbsp;&nbsp;&nbsp;&nbsp;(2019-2022) |
| Jared A. Yepsen<br>711 High Street<br>Des Moines, IA 50392<br>1981 | Tax Counsel (since 2025)<br>Assistant Tax Counsel (2017-2025) | <u>Principal Financial Group\*</u><br>Assistant General Counsel (since 2023)<br>Counsel (2015-2023) |

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\*The reference to Principal Financial Group includes positions held by the Interested Board Members / Principal Funds Officers, including as an officer, employee, and/or director, with affiliates or subsidiaries of Principal Financial Group. The titles set forth in this SAI are each Interested Board Member's / Principal Funds Officer's title with Principal Workforce, LLC, an affiliated entity of PGI that is the payroll employer of the Interested Board Members and Principal Funds Officers.

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**Board Member Ownership of Securities**

The following tables set forth the dollar range of the equity securities of Funds included in this SAI, and aggregate dollar range of the equity securities of the funds in the Fund Complex, that were beneficially owned by the Board Members as of December 31, 2025. As of that date, Board Members did not own shares of the Funds included in this SAI that are not listed.

For the purpose of these tables, beneficial ownership means a direct or indirect pecuniary interest. Only Interested Board Members are eligible to participate in an employee benefit program that invests in the Fund Complex. Board Members who beneficially owned shares of the series of PVC did so through variable life insurance and variable annuity contracts. Please note that exact dollar amounts of securities held are not listed. Rather, ownership is listed based on the following dollar ranges:

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| | |
|:---|:---|
| A | $0 |
| B | $1 up to and including $10,000 |
| C | $10,001 up to and including $50,000 |
| D | $50,001 up to and including $100,000 |
| E | $100,001 or more |

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| | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| | **Independent Board Members** | **Independent Board Members** | **Independent Board Members** | **Independent Board Members** | **Independent Board Members** | **Independent Board Members** | **Independent Board Members** | **Independent Board Members** |
| **Fund/Portfolio in this SAI** | **Damos** | **Dyer** | **Grieb** | **Hymes** | **Kassam**<sup>(1)</sup> | **Lattimer** | **McMillan** | **Swank** |
| Core Fixed Income | E | A | A | B | A | A | A | A |
| Core Plus Bond | E | A | A | A | A | D | A | A |
| Diversified Income | A | A | A | A | A | A | C | A |
| Diversified International | E | A | A | E | A | C | A | A |
| Equity Income | D | A | A | A | A | A | A | A |
| Finisterre Emerging Markets Total Return Bond | E | A | A | E | A | A | A | A |
| Global Emerging Markets | A | A | A | D | A | C | A | A |
| Global Real Estate Securities | A | A | A | C | A | A | A | A |
| High Yield | A | A | A | C | A | A | A | A |
| LargeCap S&P 500 Index | A | A | A | D | D | A | A | A |
| MidCap | E | A | A | A | A | A | A | A |
| SAM Conservative Growth | E | A | A | A | A | A | A | A |
| SmallCap | C | A | A | A | A | A | A | A |
| **Aggregate Dollar Range of Equity Securities in All Registered Companies Overseen by Director in Family of Investment Companies** | **E** | **E** | **E** | **E** | **D** | **E** | **E** | **E** |

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<sup>(1)</sup> Appointment effective September 10, 2025.

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| | | |
|:---|:---|:---|
| | **Interested Board Members** | **Interested Board Members** |
| **Fund/Portfolio in this SAI**<sup>(1)</sup> | **Bhatia** | **McCullum** |
| Diversified International | A | D |
| Equity Income | A | E |
| Global Emerging Markets | E | A |
| Inflation Protection | A | E |
| International Equity | E | A |
| LargeCap Growth I | A | E |
| LargeCap S&P 500 Index | E | E |
| MidCap | A | E |
| MidCap S&P 400 Index | A | C |
| Principal LifeTime Hybrid 2030 | A | E |
| Real Estate Securities | A | D |
| SmallCap Growth I | E | A |
| SmallCap S&P 600 Index | A | C |
| **Aggregate Dollar Range of Equity Securities in All Registered Companies Overseen by Director in Family of Investment Companies** | **E** | **E** |

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<sup>(1)</sup> Ownership through participation in an Employee Benefit Plan.

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**Board Member and Officer Compensation**

The Principal Funds do not pay any remuneration to officers or to any Board Members listed above as Interested Board Members. The Board annually considers a proposal to reimburse PGI for certain expenses, including a portion of the compensation of the Chief Compliance Officer ("CCO"). If the proposal is adopted, these amounts are allocated across all Funds and the other PGI-sponsored registered investment companies for which the CCO serves as the Chief Compliance Officer.

Each Independent Board Member received compensation for service as a member of the Boards of all investment companies in the Principal Funds based on a schedule that takes into account an annual retainer amount, the number of meetings attended, and expenses incurred. Board Member compensation and related expenses are allocated to each of the Funds based on the net assets of each relative to combined net assets of the Principal Funds.

The following table provides information regarding the compensation received by the Independent Board Members from the Funds included in this SAI and from the Fund Complex during the fiscal year ended October 31, 2025. The Principal Funds does not provide retirement benefits or pensions to any of the Board Members.

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| | | |
|:---|:---|:---|
| &nbsp;&nbsp;**Board Member** | &nbsp;&nbsp;&nbsp;&nbsp;**Funds in this SAI** | &nbsp;&nbsp;&nbsp;&nbsp;**Fund Complex**<sup>(2)</sup> |
| Craig Damos | $354300 | $454300 |
| Katharin S. Dyer | 302446 | 387800 |
| Frances P. Grieb | 304007 | 389800 |
| Victor L. Hymes | 315704 | 404800 |
| Sharmila C. Kassam<sup>(1)</sup> | 106179 | 135500 |
| Padelford L. Lattimer | 314143 | 402800 |
| Karen McMillan | 328778 | 421550 |
| Thomas A. Swank | 302446 | 387800 |

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<sup>(1)</sup> Ms. Kassam was elected to the Board effective September 10, 2025.

<sup>(2)</sup> "Fund Complex" includes the Principal Real Asset Fund and the Principal Private Credit Fund, which are not overseen by the Board Members, and the Board Members do not receive compensation from those Funds.

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**INVESTMENT ADVISORY AND OTHER SERVICES**

**Investment Advisors**

Principal Global Investors, LLC (doing business as Principal Asset Management<sup>SM</sup>) ("PGI"), an indirect subsidiary of Principal Financial Group, Inc. ("Principal<sup>®</sup>"), serves as the investment advisor for the Funds. Principal Management Corporation, previously an affiliate of PGI, served as the investment advisor to the Funds prior to its merger with and into PGI on May 1, 2017.

PGI directly makes decisions to purchase or sell securities for each Fund, except for those Funds or portions of Funds for which PGI has retained a sub-advisor to provide such services, as described below.

**Affiliated Persons of the Registrant Who are Affiliated Persons of the Advisor**

For information about affiliated persons of the Registrant who are also affiliated persons of PGI or affiliated advisors, see the Interested Board Members and Principal Funds Officers tables in the "Leadership Structure and Board" section.

**Sub-Advisors**

PGI has executed agreements with various sub-advisors. Under those sub-advisory agreements, the sub-advisor agrees to assume the obligations of PGI to provide investment advisory services for a specific Fund. For these services, PGI pays each sub-advisor a fee, which is set forth in greater detail below in the "Sub-Advisory Agreements for the Funds" section.

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| | |
|:---|:---|
| **Sub-Advisor:** | **AllianceBernstein L.P. ("AllianceBernstein")** is a Delaware limited partnership, the majority limited partnership units in which are held, directly and indirectly, by its parent company Equitable Holdings, Inc. ("EQH"), a publicly traded holding company for a diverse group of financial services companies. AllianceBernstein Corporation, an indirect wholly-owned subsidiary of EQH, is the general partner of both AllianceBernstein and AllianceBernstein Holding L.P. ("ABH"), a publicly traded partnership. As of September 30, 2025, ABH owned approximately 30.8% of the issued and outstanding AllianceBernstein Units; EQH and its subsidiaries had an approximate 68.5% economic interest in AllianceBernstein (including both the general partnership and limited partnership interests in ABH and AllianceBernstein); and unaffiliated holders 0.7%. |
| **Fund(s):** | a portion of the assets of SmallCap Growth I |
| **Sub-Advisor:** | **Barrow, Hanley, Mewhinney & Strauss, LLC** (doing business as Barrow Hanley Global Investors) **("Barrow Hanley")** is majority owned by Perpetual Limited (Perpetual Group) (ASX: PPT), a global financial services firm operating a multi-boutique asset management business, as well as wealth management and trustee services businesses. |
| **Fund(s):** | a portion of the assets of LargeCap Value III and a portion of the assets of Overseas |
| **Sub-Advisor:** | **BlackRock Financial Management, Inc. ("BlackRock")** is an indirect wholly-owned subsidiary of BlackRock, Inc. |
|  | <u>Sub-Sub-Advisor:</u> **BlackRock International Limited** is an indirect wholly-owned subsidiary of BlackRock, Inc. |
| **Fund(s):** | a portion of Diversified Income |
| **Sub-Advisor:** | **Brown Advisory, LLC ("Brown")** is a wholly-owned subsidiary of Brown Advisory Management, LLC. |
| **Fund(s):** | a portion of the assets of LargeCap Growth I and a portion of the assets of SmallCap Growth I |
| **Sub-Advisor:** | **Causeway Capital Management LLC ("Causeway")** is wholly owned by Causeway Capital Holdings LLC. |
| **Fund(s):** | a portion of the assets of Overseas |
| **Sub-Advisor:** | **Emerald Advisers, LLC ("Emerald")** is a wholly-owned subsidiary of Emerald Asset Management PA, LLC, which is 51% owned by a subsidiary of 1251 Capital Group, Inc., a financial services holding company. |
| **Fund(s):** | a portion of the assets of SmallCap Growth I |
| **Sub-Advisor:** | **Grantham, Mayo, Van Otterloo & Co. LLC ("GMO"),** is organized as a Massachusetts limited liability company that is owned by active and retired partners. |
| **Fund(s):** | a portion of Diversified Income (opportunistic securitized investment sleeve) |

---

------

---

| | |
|:---|:---|
| **Sub-Advisor:** | **Hotchkis and Wiley Capital Management, LLC** is a limited liability company, the primary members of which are HWCap Holdings, LLC, a limited liability company whose members are current and former employees, and Stephens-H&W, LLC, a limited liability company whose primary member is SF Holding Corp., a diversified holding company. |
| **Fund(s):** | a portion of the assets of SmallCap Value II |
| **Sub-Advisor:** | **Los Angeles Capital Management LLC ("Los Angeles Capital")** is a California limited liability company. It is owned by key employees through its parent holding companies, LACM Holdings Inc. and LACM Equity LLC (collectively, the "Parent Company"). Thomas D. Stevens, Chairman, holds a controlling equity interest in the Parent Company. |
| **Fund(s):** | a portion of the assets of MidCap Value I |
| **Sub-Advisor:** | **Nuveen Asset Management, LLC ("Nuveen Asset Management")** is an investment advisor registered with the SEC, whose sole managing member is Nuveen Fund Advisors, LLC. Nuveen Asset Management is an indirect subsidiary of Teachers Insurance and Annuity Association of America, which constitutes the ultimate principal owner of Nuveen Asset Management. |
| **Fund(s):** | a portion of the assets of Diversified Income |
| **Sub-Advisor:** | **PineBridge Investments LLC ("PineBridge")** is a wholly-owned indirect subsidiary of MetLife, Inc. ("MetLife") and is part of MetLife Investment Management, the institutional asset management business of MetLife. |
| **Fund(s):** | a portion of the assets of Diversified Income |
| **Sub-Advisor:** | **Polen Capital Credit, LLC** (f/k/a DDJ Capital Management, LLC) **("Polen Credit")** is a private Massachusetts limited liability company that is wholly owned by Polen Capital Management, LLC. Polen Capital Management, LLC, which controls Polen Credit, is controlled by its Management Committee, which consists of Stan C. Moss, CEO; Daniel Davidowitz, Portfolio Manager and Analyst; and Damon Ficklin, Head of Team, Portfolio Manager, and Analyst. The Management Committee is controlled by Messrs. Moss and Davidowitz. |
| **Fund(s):** | a portion of the assets of Diversified Income |
| **Sub-Advisor:** | **Post Advisory Group, LLC ("Post")** is 100% owned by Gateway Credit Advisory Holdings LLC ("Gateway Credit"). Gateway Credit's equity ownership is 48% Gateway Post Holdings LLC ("Nexus Group Members"), 20% APS Post Blocker LLC ("APS"), and 32% Post Management Aggregator, LLC ("Post Management")." |
| **Fund(s):** | a portion of the assets of Diversified Income |
| **Sub-Advisor:** | **Principal Real Estate Investors, LLC** (doing business as Principal Real Estate) **("Principal - REI")** is an indirect subsidiary of Principal Financial Group, Inc. |
| **Fund(s):** | Global Real Estate Securities and Real Estate Securities |
| **Sub-Advisor:** | **Spectrum Asset Management, Inc. ("Spectrum")** is an indirect subsidiary of Principal Financial Group, Inc. |
| **Fund(s):** | a portion of the assets of Diversified Income |
| **Sub-Advisor:** | **T. Rowe Price Associates, Inc. ("T. Rowe Price")** is a wholly-owned subsidiary of T. Rowe Price Group, Inc., a financial services holding company. |
| **Fund(s):** | a portion of the assets of LargeCap Growth I |
| **Sub-Advisor:** | **Vaughan Nelson Investment Management, L.P. ("Vaughan Nelson")** is a subsidiary of Natixis Investment Managers, LLC. |
| **Fund(s):** | a portion of the assets of SmallCap Value II |
| **Sub-Advisor:** | **Victory Capital Management Inc. ("Victory Capital")** is an indirect wholly-owned subsidiary of Victory Capital Holdings, Inc. ("VCH"), a publicly traded Delaware corporation. |
| **Fund(s):** | a portion of the assets of MidCap Value I |
| **Sub-Advisor:** | **Westwood Management Corp. ("Westwood")**, a New York corporation, is a wholly-owned subsidiary of Westwood Holdings Group, Inc., a publicly held company traded on the New York Stock Exchange. |
| **Fund(s):** | a portion of the assets of LargeCap Value III |

---

------

**Codes of Ethics**

The Registrant, PGI, PFD (as defined below), and each of the sub-advisors have adopted Codes of Ethics ("Codes") under Rule 17j-1 of the 1940 Act. PGI and the sub-advisors each have also adopted such a Code under Rule 204A-1 of the Investment Advisers Act of 1940. These Codes are designed to prevent, among other things, persons with access to information regarding the portfolio trading activity of the Funds from using that information for their personal benefit. Except in limited circumstances, the Code for PGI and the Registrant prohibits portfolio managers from personally trading securities that are held or traded in the actively managed portfolios for which they are responsible. Certain sub-advisors have adopted Codes that do not permit personnel subject to such Code to invest in securities that may be purchased or held by a Fund. However, other sub-advisors' Codes do permit, subject to conditions, personnel subject to the Code to invest in securities that may be purchased or held by a Fund. The Registrant's Board reviews reports at least annually regarding the operation of the Code of Ethics of the Registrant, PGI, PFD, and each sub-advisor. A copy of the Registrant's Code will be provided upon request, which may be made by contacting the Registrant.

**Management Agreement**

Under the terms of the Management Agreement with the Registrant, PGI, the investment advisor, is entitled to receive a fee computed and accrued daily and payable monthly, at the following annual rates, for providing investment advisory services and specified other services. The management fee schedule for each Fund is as follows (expressed as a percentage of average net assets).

---

| | | | |
|:---|:---|:---|:---|
| **Fund** | **All Assets** | **Fund** | **All Assets** |
| Government Money Market | 0.15% | Principal LifeTime 2070 | 0.00% |
| International Bond | 0.48% | Principal LifeTime Hybrid Income | 0.00% |
| Principal LifeTime Strategic Income | 0.00% | Principal LifeTime Hybrid 2015 | 0.00% |
| Principal LifeTime 2015 | 0.00% | Principal LifeTime Hybrid 2020 | 0.00% |
| Principal LifeTime 2020 | 0.00% | Principal LifeTime Hybrid 2025 | 0.00% |
| Principal LifeTime 2025 | 0.00% | Principal LifeTime Hybrid 2030 | 0.00% |
| Principal LifeTime 2030 | 0.00% | Principal LifeTime Hybrid 2035 | 0.00% |
| Principal LifeTime 2035 | 0.00% | Principal LifeTime Hybrid 2040 | 0.00% |
| Principal LifeTime 2040 | 0.00% | Principal LifeTime Hybrid 2045 | 0.00% |
| Principal LifeTime 2045 | 0.00% | Principal LifeTime Hybrid 2050 | 0.00% |
| Principal LifeTime 2050 | 0.00% | Principal LifeTime Hybrid 2055 | 0.00% |
| Principal LifeTime 2055 | 0.00% | Principal LifeTime Hybrid 2060 | 0.00% |
| Principal LifeTime 2060 | 0.00% | Principal LifeTime Hybrid 2065 | 0.00% |
| Principal LifeTime 2065 | 0.00% | Principal LifeTime Hybrid 2070 | 0.00% |

---

---

| | | | |
|:---|:---|:---|:---|
| **Fund** | **First<br>$500 million** | **Next<br>$500 million** | **Over<br>$1 billion** |
| Principal Capital Appreciation | 0.625% | 0.50% | 0.375% |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fund** | **First** <br>**$500 million** | **Next** <br>**$500 million** | **Next** <br>**$500 million** | **Over** <br>**$1.5 billion** |
| California Municipal | 0.40% | 0.38% | 0.36% | 0.35% |
| Finisterre Emerging Markets Total Return Bond | 0.75% | 0.74% | 0.73% | 0.72% |
| Government & High Quality Bond | 0.49% | 0.47% | 0.45% | 0.44% |
| Tax-Exempt Bond | 0.40% | 0.38% | 0.36% | 0.35% |

---

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Fund** | **First<br>$500 million** | **Next<br>$500 million** | **Next<br>$500 million** | **Next<br>$500 million** | **Next**<br>**$1 billion** | **Over**<br>**$3 billion** |
| Core Plus Bond | 0.42% | 0.40% | 0.38% | 0.37% | 0.36% | 0.35% |
| Diversified Income | 0.69% | 0.67% | 0.65% | 0.64% | 0.63% | 0.62% |
| Global Emerging Markets | 0.99% | 0.97% | 0.95% | 0.94% | 0.93% | 0.92% |
| Global Real Estate Securities  | 0.90% | 0.88% | 0.86% | 0.85% | 0.84% | 0.83% |
| International Equity  | 0.65% | 0.63% | 0.61% | 0.60% | 0.59% | 0.58% |
| LargeCap Value III | 0.73% | 0.71% | 0.69% | 0.67% | 0.66% | 0.65% |
| MidCap Value I | 0.68% | 0.66% | 0.64% | 0.63% | 0.62% | 0.61% |
| Money Market | 0.40% | 0.39% | 0.38% | 0.37% | 0.36% | 0.35% |
| Overseas | 0.90% | 0.88% | 0.86% | 0.85% | 0.84% | 0.83% |
| Short-Term Income | 0.38% | 0.36% | 0.35% | 0.33% | 0.32% | 0.31% |
| SmallCap | 0.75% | 0.73% | 0.71% | 0.70% | 0.69% | 0.68% |
| SmallCap Growth I | 0.88% | 0.86% | 0.84% | 0.83% | 0.82% | 0.81% |
| SmallCap Value II | 0.89% | 0.87% | 0.85% | 0.84% | 0.83% | 0.82% |

---

---

| | | | |
|:---|:---|:---|:---|
| **Fund** | **First<br>$3 billion** | **Next<br>$3 billion** | **Over<br>$6 billion** |
| High Yield | 0.51% | 0.49% | 0.47% |
| Inflation Protection | 0.10% | 0.09% | 0.08% |
| LargeCap S&P 500 Index | 0.11% | 0.09% | 0.05% |
| MidCap S&P 400 Index | 0.15% | 0.12% | 0.10% |
| SmallCap S&P 600 Index | 0.15% | 0.12% | 0.10% |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Fund** | **First<br>$500 million** | **Next<br>$500 million** | **Next<br>$500 million** | **Next<br>$500 million** | **Next<br>$1 billion** | **Next<br>$2 billion** | **Next<br>$2 billion** | **Next<br>$3 billion** | **Over<br>$10 billion** |
| Real Estate Securities | 0.85% | 0.83% | 0.81% | 0.80% | 0.79% | 0.78% | 0.77% | 0.76% | 0.75% |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Fund** | **First<br>$500 million** | **Next<br>$500 million** | **Next<br>$500 million** | **Next<br>$500 million** | **Next<br>$1 billion** | **Next<br>$7 billion** | **Over<br>$10 billion** |
| Core Fixed Income | 0.39% | 0.37% | 0.35% | 0.34% | 0.33% | 0.32% | 0.31% |
| Diversified International | 0.80% | 0.78% | 0.76% | 0.75% | 0.73% | 0.70% | 0.69% |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Fund** | **First<br>$500 million** | **Next<br>$500 million** | **Next<br>$500 million** | **Next<br>$500 million** | **Next<br>$1 billion** | **Next<br>$9 billion** | **Over<br>$12 billion** |
| LargeCap Growth I | 0.66% | 0.64% | 0.62% | 0.61% | 0.60% | 0.59% | 0.58% |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Fund** | **First<br>$250 million** | **Next<br>$250 million** | **Next<br>$6.5 billion** | **Next<br>$3 billion** | **Next<br>$2 billion** | **Next<br>$3 billion** | **Over<br>$15 billion** |
| Equity Income | 0.60% | 0.55% | 0.50% | 0.49% | 0.48% | 0.46% | 0.44% |

---

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Portfolio** | **First<br>$3 billion** | **Next<br>$4 billion** | **Next<br>$4 billion** | **Next<br>$4 billion** | **Over<br>$15 billion** |
| SAM Balanced\* | 0.35% | 0.30% | 0.25% | 0.20% | 0.18% |
| SAM Conservative Balanced\* | 0.35% | 0.30% | 0.25% | 0.20% | 0.18% |
| SAM Conservative Growth\* | 0.35% | 0.30% | 0.25% | 0.20% | 0.18% |
| SAM Flexible Income\* | 0.35% | 0.30% | 0.25% | 0.20% | 0.18% |
| SAM Strategic Growth\* | 0.35% | 0.30% | 0.25% | 0.20% | 0.18% |

---

\*Breakpoints are based on aggregate SAM Portfolio net assets.

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Fund** | **First<br>$1.5 billion** | **Next<br>$500 million** | **Next<br>$1 billion** | **Next<br>$9.5 billion** | **Next<br>$2.5 billion** | **Next<br>$3 billion** | **Next<br>$4 billion** | **Next<br>$3 billion** | **Next<br>$5 billion** | **Next <br>$5 billion** | **Over $35 billion** |
| MidCap | 0.63% | 0.60% | 0.59% | 0.58% | 0.57% | 0.56% | 0.55% | 0.53% | 0.51% | 0.50% | 0.49% |

---

------

<u>Fund Operating Expenses</u>

Each Fund pays all of its operating expenses. Under the terms of the Management Agreement, PGI is responsible for paying the expenses associated with the organization of each Fund, including the expenses incurred in the initial registration of each Fund with the SEC; compensation of personnel, officers, and Board Members who are affiliated with PGI; and expenses and compensation associated with furnishing office space and all necessary office facilities and equipment and personnel necessary to perform the general corporate functions of the Funds. Accounting services customarily required by investment companies are provided to each Fund by PGI, under the terms of the Management Agreement.

<u>Contractual Limits on Total Annual Fund Operating Expenses</u>

PGI has contractually agreed to limit Fund expenses (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) on certain share classes 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 respective class on an annualized basis. Subject to applicable expense limits, the Funds may reimburse PGI for expenses incurred during the current fiscal year.

The operating expense limits and the agreement terms are as follows:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Contractual Limits on Total Annual Fund Operating Expenses** | **Contractual Limits on Total Annual Fund Operating Expenses** | **Contractual Limits on Total Annual Fund Operating Expenses** | **Contractual Limits on Total Annual Fund Operating Expenses** | **Contractual Limits on Total Annual Fund Operating Expenses** | **Contractual Limits on Total Annual Fund Operating Expenses** | **Contractual Limits on Total Annual Fund Operating Expenses** |
| **Fund** | **A** | **J** | **Inst.** | **R-3** | **R-5** | **Expiration** |
| California Municipal | N/A | N/A | 0.46% | N/A | N/A | 2/28/2027 |
| Core Fixed Income | N/A | N/A | 0.43% | N/A | N/A | 2/28/2027 |
| Core Plus Bond | 0.80% | N/A | 0.48% | N/A | N/A | 2/28/2027 |
| Diversified Income | N/A | N/A | 0.68% | N/A | N/A | 2/28/2027 |
| Diversified International | N/A | N/A | 0.85% | N/A | N/A | 2/28/2027 |
| Equity Income | N/A | N/A | 0.52% | N/A | N/A | 2/28/2027 |
| Finisterre Emerging Markets Total Return Bond | N/A | N/A | 0.85% | N/A | N/A | 2/28/2027 |
| Global Emerging Markets | 1.45% | 1.30% | 1.10% | N/A | N/A | 2/28/2027 |
| Global Real Estate Securities | N/A | N/A | 0.94% | N/A | N/A | 2/28/2027 |
| Government & High Quality Bond | N/A | N/A | 0.53% | 0.98% | 0.67% | 2/28/2027 |
| Government Money Market | N/A | N/A | 0.20% | N/A | N/A | 2/28/2027 |
| High Yield | N/A | N/A | 0.60% | N/A | N/A | 2/28/2027 |
| International Equity | N/A | N/A | 0.79% | N/A | N/A | 2/28/2027 |
| MidCap Value I | N/A | N/A | 0.69% | N/A | N/A | 2/28/2027 |
| Money Market | 0.50% | N/A | N/A | N/A | N/A | 2/28/2027 |
| Overseas | N/A | N/A | 0.91% | N/A | N/A | 2/28/2027 |
| Principal LifeTime Strategic Income | 0.38% | N/A | 0.00% | N/A | N/A | 2/28/2027 |
| Principal LifeTime 2050 | 0.38% | N/A | N/A | N/A | N/A | 2/28/2027 |
| Principal LifeTime 2060 | N/A | 0.38% | N/A | N/A | N/A | 2/28/2027 |
| Principal LifeTime 2070 | N/A | 0.30% | 0.05% | 0.62% | 0.31% | 2/28/2027 |
| Principal LifeTime Hybrid Income | N/A | N/A | 0.05% | N/A | N/A | 2/28/2027 |
| Principal LifeTime Hybrid 2015 | N/A | N/A | 0.05% | N/A | N/A | 2/28/2027 |
| Principal LifeTime Hybrid 2020 | N/A | N/A | 0.05% | N/A | N/A | 2/28/2027 |
| Principal LifeTime Hybrid 2025 | N/A | N/A | 0.05% | N/A | N/A | 2/28/2027 |
| Principal LifeTime Hybrid 2030 | N/A | N/A | 0.05% | N/A | N/A | 2/28/2027 |
| Principal LifeTime Hybrid 2035 | N/A | N/A | 0.05% | N/A | N/A | 2/28/2027 |
| Principal LifeTime Hybrid 2040 | N/A | N/A | 0.05% | N/A | N/A | 2/28/2027 |
| Principal LifeTime Hybrid 2045 | N/A | N/A | 0.05% | N/A | N/A | 2/28/2027 |
| Principal LifeTime Hybrid 2050 | N/A | N/A | 0.05% | N/A | N/A | 2/28/2027 |
| Principal LifeTime Hybrid 2055 | N/A | N/A | 0.05% | N/A | N/A | 2/28/2027 |
| Principal LifeTime Hybrid 2060 | N/A | 0.30% | 0.05% | N/A | N/A | 2/28/2027 |
| Principal LifeTime Hybrid 2065 | N/A | 0.30% | 0.05% | N/A | N/A | 2/28/2027 |
| Principal LifeTime Hybrid 2070 | N/A | 0.30% | 0.05% | N/A | N/A | 2/28/2027 |
| Real Estate Securities | N/A | N/A | 0.86% | N/A | N/A | 2/28/2027 |
| SmallCap | N/A | N/A | 0.85% | N/A | N/A | 2/28/2027 |
| SmallCap S&P 600 Index | N/A | N/A | 0.21% | N/A | N/A | 2/28/2027 |
| SmallCap Value II | N/A | N/A | 0.93% | N/A | N/A | 2/28/2027 |

---

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Contractual Limits on Total Annual Fund Operating Expenses** | **Contractual Limits on Total Annual Fund Operating Expenses** | **Contractual Limits on Total Annual Fund Operating Expenses** | **Contractual Limits on Total Annual Fund Operating Expenses** | **Contractual Limits on Total Annual Fund Operating Expenses** | **Contractual Limits on Total Annual Fund Operating Expenses** | **Contractual Limits on Total Annual Fund Operating Expenses** |
| **Fund** | **A** | **J** | **Inst.** | **R-3** | **R-5** | **Expiration** |
| Tax-Exempt Bond | N/A | N/A | 0.45% | N/A | N/A | 2/28/2027 |

---

<u>Contractual Limits on Other Expenses</u>

PGI has contractually agreed to limit the expenses identified as "Other Expenses" related to certain share classes of certain of the Funds by paying, if necessary, expenses normally payable by the Fund (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and tax reclaim recovery expenses and other extraordinary expenses) to maintain "Other Expenses" (expressed as a percent of average net assets on an annualized basis) at or below certain limits.

The other expenses limits and the agreement terms are as follows:

---

| | | |
|:---|:---|:---|
| **Contractual Limits on Other Expenses** | **Contractual Limits on Other Expenses** | **Contractual Limits on Other Expenses** |
| **Fund** | **R-6** | **Expiration** |
| Diversified Income | 0.02% | 2/28/2027 |
| Diversified International | 0.04% | 2/28/2027 |
| Government Money Market | 0.00% | 2/28/2027 |
| International Bond | 0.04% | 2/28/2027 |
| Principal LifeTime Hybrid Income | 0.02% | 2/28/2027 |
| Principal LifeTime Hybrid 2015 | 0.02% | 2/28/2027 |
| Principal LifeTime Hybrid 2020 | 0.02% | 2/28/2027 |
| Principal LifeTime Hybrid 2025 | 0.02% | 2/28/2027 |
| Principal LifeTime Hybrid 2045 | 0.02% | 2/28/2027 |
| Principal LifeTime Hybrid 2050 | 0.02% | 2/28/2027 |
| Principal LifeTime Hybrid 2055 | 0.02% | 2/28/2027 |
| Principal LifeTime Hybrid 2060 | 0.02% | 2/28/2027 |
| Principal LifeTime Hybrid 2065 | 0.02% | 2/28/2027 |
| Principal LifeTime Hybrid 2070 | 0.02% | 2/28/2027 |
| SmallCap Growth I | 0.01% | 2/28/2027 |
| SmallCap Value II | 0.02% | 2/28/2027 |

---

<u>Contractual Management Fee Waivers</u>

PGI has contractually agreed to waive a portion of certain Fund's management fees. The fee waiver will reduce the Fund's management fees by the amounts listed below:

---

| | | |
|:---|:---|:---|
| **Contractual Management Fee Waivers** | **Contractual Management Fee Waivers** | **Contractual Management Fee Waivers** |
| **Fund** | **Waiver** | **Expiration** |
| LargeCap Growth I | 0.016% | 2/28/2027 |
| LargeCap Value III | 0.020% | 2/28/2027 |
| MidCap Value I | 0.020% | 2/28/2027 |
| Overseas | 0.020% | 2/28/2027 |
| SmallCap Growth I | 0.020% | 2/28/2027 |
| SmallCap Value II | 0.020% | 2/28/2027 |

---

PGI has also contractually agreed to reduce the Government Money Market Fund's management fee, through the period ended February 28, 2027, in an amount equal to all Acquired Fund Fees and Expenses. In addition, PGI has contractually agreed to reduce the LargeCap Value Fund III's management fee, through the period ended February 28, 2027, in an amount equal to the Fund's Acquired Fund Fees and Expenses represented by the Fund's investment in a particular unaffiliated exchange-traded fund that pursues a pure value investment strategy.

<u>Voluntary Expense Limit</u>

PGI has voluntarily agreed to limit the Government Money Market and Money Market Funds' expenses to the extent necessary to maintain a 0% yield. The voluntary expense limit may be revised or terminated at any time without notice to the shareholders.

------

<u>Management Fees Paid</u>

Management fees paid for investment management services (before any waivers/reimbursements from PGI) during the periods indicated were as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Management Fees Paid for Periods Ended October 31<br>(amounts in thousands)** | **Management Fees Paid for Periods Ended October 31<br>(amounts in thousands)** | **Management Fees Paid for Periods Ended October 31<br>(amounts in thousands)** | **Management Fees Paid for Periods Ended October 31<br>(amounts in thousands)** |
| **Fund** | **2025** | **2024** | **2023** |
| California Municipal | $2463 | $2416 | $2290 |
| Core Fixed Income | 34764 | 35635 | 37053 |
| Core Plus Bond | 2224 | 2448 | 3047 |
| Diversified Income | 16244 | 17604 | 19900 |
| Diversified International | 21341 | 40406 | 34977 |
| Equity Income | 43771 | 44128 | 45385 |
| Finisterre Emerging Markets Total Return Bond | 5049 | 4127 | 3290 |
| Global Emerging Markets | 28148 | 4058 | 2253 |
| Global Real Estate Securities | 14785 | 16380 | 18639 |
| Government & High Quality Bond | 3093 | 3247 | 3177 |
| Government Money Market | 5984 | 4755 | 4936 |
| High Yield | 31071 | 14568 | 11665 |
| Inflation Protection | 8337 | 6496 | 5925 |
| International Bond<sup>(1)</sup> |  |  |  |
| International Equity | 25707 | 1879 <sup>(2)</sup> | 1987 |
| LargeCap Growth I | 55792 | 63220 | 62188 |
| LargeCap S&P 500 Index | 7592 | 7300 | 8429 |
| LargeCap Value III | 24740 | 25161 | 20849 |
| MidCap | 171268 | 136570 | 110525 |
| MidCap S&P 400 Index | 1866 | 2086 | 1952 |
| MidCap Value I | 16184 | 22904 | 23972 |
| Money Market | 4264 | 4018 | 3809 |
| Overseas | 10571 | 18900 | 19919 |
| Principal Capital Appreciation | 20138 | 18150 | 14430 |
| Principal LifeTime Strategic Income |  |  |  |
| Principal LifeTime 2015 |  |  |  |
| Principal LifeTime 2020 |  |  |  |
| Principal LifeTime 2025 |  |  |  |
| Principal LifeTime 2030 |  |  |  |
| Principal LifeTime 2035 |  |  |  |
| Principal LifeTime 2040 |  |  |  |
| Principal LifeTime 2045 |  |  |  |
| Principal LifeTime 2050 |  |  |  |
| Principal LifeTime 2055 |  |  |  |
| Principal LifeTime 2060 |  |  |  |
| Principal LifeTime 2065 |  |  |  |
| Principal LifeTime 2070 |  |  | — <sup>(3)</sup> |
| Principal LifeTime Hybrid Income |  |  |  |
| Principal LifeTime Hybrid 2015 |  |  |  |
| Principal LifeTime Hybrid 2020 |  |  |  |
| Principal LifeTime Hybrid 2025 |  |  |  |
| Principal LifeTime Hybrid 2030 |  |  |  |
| Principal LifeTime Hybrid 2035 |  |  |  |
| Principal LifeTime Hybrid 2040 |  |  |  |
| Principal LifeTime Hybrid 2045 |  |  |  |
| Principal LifeTime Hybrid 2050 |  |  |  |
| Principal LifeTime Hybrid 2055 |  |  |  |
| Principal LifeTime Hybrid 2060 |  |  |  |
| Principal LifeTime Hybrid 2065 |  |  |  |
| Principal LifeTime Hybrid 2070 |  |  | — <sup>(3)</sup> |
| Real Estate Securities | 50039 | 47905 | 44271 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| **Management Fees Paid for Periods Ended October 31<br>(amounts in thousands)** | **Management Fees Paid for Periods Ended October 31<br>(amounts in thousands)** | **Management Fees Paid for Periods Ended October 31<br>(amounts in thousands)** | **Management Fees Paid for Periods Ended October 31<br>(amounts in thousands)** |
| **Fund** | **2025** | **2024** | **2023** |
| SAM Balanced | 12654 | 12366 | 11766 |
| SAM Conservative Balanced | 5011 | 4970 | 4726 |
| SAM Conservative Growth | 8895 | 8552 | 7970 |
| SAM Flexible Income | 6197 | 6555 | 6864 |
| SAM Strategic Growth | 6328 | 6002 | 5376 |
| Short-Term Income | 11485 | 11064 | 11754 |
| SmallCap | 15374 | 11594 | 8841 |
| SmallCap Growth I | 17735 | 20006 | 19376 |
| SmallCap S&P 600 Index | 1970 | 1797 | 1725 |
| SmallCap Value II | 9870 | 12923 | 11005 |
| Tax-Exempt Bond | 2062 | 2221 | 2315 |

---

<sup>(1)</sup> International Bond Fund had not yet commenced operations as of the date of this SAI.

<sup>(2)</sup> Effective July 31, 2024, International Fund I changed its name to International Equity Fund.

<sup>(3)</sup> Period from March 1, 2023, date operations commenced, through October 31, 2023.

<u>Management Fees Waived</u> 

For the following Funds, PGI waived a portion of the management fee during the periods indicated as follows:

---

| | | | |
|:---|:---|:---|:---|
| **Management Fees Waived for Periods Ended October 31<br>(amounts in thousands)** | **Management Fees Waived for Periods Ended October 31<br>(amounts in thousands)** | **Management Fees Waived for Periods Ended October 31<br>(amounts in thousands)** | **Management Fees Waived for Periods Ended October 31<br>(amounts in thousands)** |
| **Fund** | **2025** | **2024** | **2023** |
| Core Plus Bond | $— | $— | $120 |
| Diversified Income |  |  | 418 |
| Government Money Market | 307 | 286 | 278 |
| LargeCap Growth I | 1488 | 1689 | 1661 |
| LargeCap Value III | 1383 | 2209 | 1781 |
| MidCap Value I | 501 | 720 | 755 |
| Overseas | 239 | 432 | 487 |
| SmallCap Growth I | 417 | 472 | 457 |
| SmallCap Value II | 222 | 277 | 235 |

---

------

<u>Expenses Reimbursed</u>

For the following Funds, PGI reimbursed certain expenses during the periods indicated as follows:

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Expenses Reimbursed for Periods Ended October 31<br>(amounts in thousands)** | **Expenses Reimbursed for Periods Ended October 31<br>(amounts in thousands)** | **Expenses Reimbursed for Periods Ended October 31<br>(amounts in thousands)** | **Expenses Reimbursed for Periods Ended October 31<br>(amounts in thousands)** | **Expenses Reimbursed for Periods Ended October 31<br>(amounts in thousands)** | **Expenses Reimbursed for Periods Ended October 31<br>(amounts in thousands)** |
| **Fund** | **2025** | **2024** |  | **2023** |  |
| California Municipal | $112 | $83 |  | $99 |  |
| Core Fixed Income | 33 | 138 |  | 439 |  |
| Core Plus Bond | 348 | 344 |  | 504 |  |
| Diversified Income | 1275 | 1258 |  | 1330 |  |
| Diversified International | 369 | 67 |  | 199 |  |
| Equity Income | 1288 | 1335 |  | 1679 |  |
| Finisterre Emerging Markets Total Return Bond |  | 46 |  | 193 |  |
| Global Emerging Markets | 134 | 325 |  | 503 |  |
| Global Real Estate Securities | 637 | 714 |  | 912 |  |
| Government & High Quality Bond | 217 | 210 |  | 71 |  |
| Government Money Market | 451 | 242 |  | 224 |  |
| High Yield | 136 | 279 |  | 445 |  |
| International Equity |  | 132 | <sup>(1)</sup> | 132 |  |
| LargeCap S&P 500 Index |  |  |  | 11 |  |
| MidCap Value I | 467 | 469 |  | 534 |  |
| Overseas | 171 |  |  |  |  |
| Principal LifeTime Strategic Income | 79 | 51 |  | 16 |  |
| Principal LifeTime 2040 |  |  |  | 25 |  |
| Principal LifeTime 2050 |  | 12 |  | 79 |  |
| Principal LifeTime 2060 |  |  |  | 9 |  |
| Principal LifeTime 2070 | 32 | 49 |  | 66 | <sup>(2)</sup> |
| Principal LifeTime Hybrid Income | 40 | 41 |  | 40 |  |
| Principal LifeTime Hybrid 2015 | 34 | 42 |  | 34 |  |
| Principal LifeTime Hybrid 2020 | 21 | 31 |  | 27 |  |
| Principal LifeTime Hybrid 2025 | 14 | 15 |  | 24 |  |
| Principal LifeTime Hybrid 2030 | 7 | 14 |  | 18 |  |
| Principal LifeTime Hybrid 2035 | 13 | 15 |  | 27 |  |
| Principal LifeTime Hybrid 2040 | 10 | 14 |  | 27 |  |
| Principal LifeTime Hybrid 2045 | 16 | 23 |  | 36 |  |
| Principal LifeTime Hybrid 2050 | 18 | 29 |  | 38 |  |
| Principal LifeTime Hybrid 2055 | 32 | 39 |  | 63 |  |
| Principal LifeTime Hybrid 2060 | 76 | 75 |  | 99 |  |
| Principal LifeTime Hybrid 2065 | 112 | 94 |  | 93 |  |
| Principal LifeTime Hybrid 2070 | 79 | 80 |  | 93 | <sup>(2)</sup> |
| Real Estate Securities | 1504 | 1418 |  | 1731 |  |
| SmallCap | 241 | 419 |  | 230 |  |
| SmallCap Growth I | 149 | 150 |  | 69 |  |
| SmallCap S&P 600 Index | 66 | 86 |  | 85 |  |
| SmallCap Value II | 374 | 225 |  | 190 |  |
| Tax-Exempt Bond | 204 | 204 |  | 201 |  |

---

<sup>(1)</sup> Effective July 31, 2024, International Fund I changed its name to International Equity Fund.

<sup>(2)</sup> Period from March 1, 2023, date operations commenced, through October 31, 2023.

------

**Sub-Advisory Agreements for the Funds**

PGI (and not the Funds) pays the sub-advisors fees determined pursuant to a sub-advisory agreement with each sub-advisor, including those sub-advisors that are at least 95% owned, directly or indirectly, by PGI or its affiliates ("Wholly-Owned Sub-Advisors") and the sub-advisors for the Funds listed in the tables below. Fees paid to sub-advisors are individually negotiated between PGI and each sub-advisor and may vary.

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Aggregate Fees Paid to Sub-Advisors (other than Wholly-Owned Sub-Advisors and Post)** <br>**for Fiscal Years Ended October 31 (dollar amounts in thousands)** | **Aggregate Fees Paid to Sub-Advisors (other than Wholly-Owned Sub-Advisors and Post)** <br>**for Fiscal Years Ended October 31 (dollar amounts in thousands)** | **Aggregate Fees Paid to Sub-Advisors (other than Wholly-Owned Sub-Advisors and Post)** <br>**for Fiscal Years Ended October 31 (dollar amounts in thousands)** | **Aggregate Fees Paid to Sub-Advisors (other than Wholly-Owned Sub-Advisors and Post)** <br>**for Fiscal Years Ended October 31 (dollar amounts in thousands)** | **Aggregate Fees Paid to Sub-Advisors (other than Wholly-Owned Sub-Advisors and Post)** <br>**for Fiscal Years Ended October 31 (dollar amounts in thousands)** | **Aggregate Fees Paid to Sub-Advisors (other than Wholly-Owned Sub-Advisors and Post)** <br>**for Fiscal Years Ended October 31 (dollar amounts in thousands)** | **Aggregate Fees Paid to Sub-Advisors (other than Wholly-Owned Sub-Advisors and Post)** <br>**for Fiscal Years Ended October 31 (dollar amounts in thousands)** |
| | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** |
| **Fund** | **Dollar<br>Amount** | &nbsp;&nbsp;**Percent of<br>Average Daily<br>Net Assets** | **Dollar<br>Amount** | &nbsp;&nbsp;**Percent of<br>Average Daily<br>Net Assets** | **Dollar<br>Amount** | &nbsp;&nbsp;**Percent of<br>Average Daily<br>Net Assets** |
| Diversified Income | $3218 | 0.43% | $3261 | 0.27% | $3125 | 0.40% |
| Inflation Protection | 1381 | 0.06 | 1081 | 0.06 | 972 | 0.06 |
| LargeCap Growth I | 17692 | 0.23 | 20416 | 0.22 | 20002 | 0.22 |
| LargeCap Value III | 5791 | 0.19 | 5412 | 0.20 | 4705 | 0.20 |
| MidCap Value I | 6129 | 0.27 | 8514 | 0.27 | 8767 | 0.27 |
| Overseas | 3900 | 0.36 | 6611 | 0.34 | 6523 | 0.34 |
| SmallCap Growth I | 8531 | 0.43 | 9472 | 0.43 | 9077 | 0.42 |
| SmallCap Value II | 3823 | 0.37 | 4578 | 0.37 | 3856 | 0.37 |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Fees Paid to Post <br>for Fiscal Years Ended October 31 (dollar amounts in thousands)** | **Fees Paid to Post <br>for Fiscal Years Ended October 31 (dollar amounts in thousands)** | **Fees Paid to Post <br>for Fiscal Years Ended October 31 (dollar amounts in thousands)** | **Fees Paid to Post <br>for Fiscal Years Ended October 31 (dollar amounts in thousands)** | **Fees Paid to Post <br>for Fiscal Years Ended October 31 (dollar amounts in thousands)** | **Fees Paid to Post <br>for Fiscal Years Ended October 31 (dollar amounts in thousands)** | **Fees Paid to Post <br>for Fiscal Years Ended October 31 (dollar amounts in thousands)** |
| | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** |
| **Fund** | **Dollar<br>Amount** | &nbsp;&nbsp;**Percent of<br>Average Daily<br>Net Assets** | **Dollar<br>Amount** | &nbsp;&nbsp;**Percent of<br>Average Daily<br>Net Assets** | **Dollar<br>Amount** | &nbsp;&nbsp;**Percent of<br>Average Daily<br>Net Assets** |
| Diversified Income (Post) | $1444 | 0.30% | $1273 | 0.28% | $1198 | 0.29% |

---

**Principal Underwriter**

The distributor and principal underwriter in the continuous offering of the Fund's shares is Principal Funds Distributor, Inc. ("PFD" or the "Distributor"). PFD's address is 711 High Street, Des Moines, IA 50392. The table below shows the aggregate dollar amount of underwriting commissions and the amount retained by PFD for the last three fiscal years ended October 31:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Underwriting Fees for Periods Ended October 31<br>(amounts in thousands)** | **Underwriting Fees for Periods Ended October 31<br>(amounts in thousands)** | **Underwriting Fees for Periods Ended October 31<br>(amounts in thousands)** | **Underwriting Fees for Periods Ended October 31<br>(amounts in thousands)** | **Underwriting Fees for Periods Ended October 31<br>(amounts in thousands)** | **Underwriting Fees for Periods Ended October 31<br>(amounts in thousands)** | **Underwriting Fees for Periods Ended October 31<br>(amounts in thousands)** |
| | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** |
| **Fund/Portfolio** | **Total<br>Underwriting<br> Commissions** | **Amount<br>Retained<br> by PFD** | **Total<br>Underwriting<br> Commissions** | **Amount<br>Retained<br> by PFD** | **Total<br>Underwriting<br> Commissions** | **Amount<br>Retained<br> by PFD** |
| California Municipal | $33 | $24 | $35 | $11 | $61 | $18 |
| Core Fixed Income  | 65 | 15 | 101 | 24 | 93 | 22 |
| Core Plus Bond | 25 | 9 | 34 | 10 | 45 | 13 |
| Diversified Income | 180 | 53 | 225 | 53 | 226 | 60 |
| Diversified International | 132 | 27 | 105 | 24 | 130 | 27 |
| Equity Income | 384 | 69 | 394 | 73 | 461 | 95 |
| Finisterre Emerging Markets Total Return Bond |  |  |  |  |  |  |
| Global Emerging Markets | 47 | 9 | 52 | 10 | 63 | 13 |
| Global Real Estate Securities | 16 | 3 | 24 | 3 | 22 | 5 |
| Government & High Quality Bond | 35 | 6 | 31 | 7 | 49 | 10 |
| High Yield | 144 | 37 | 103 | 24 | 103 | 29 |
| Inflation Protection | 1 | 1 | 2 | 2 | 4 | 4 |
| International Bond<sup>(1)</sup> |  |  |  |  |  |  |
| International Equity |  |  | — <sup>(2)</sup> |  |  |  |
| LargeCap Growth I | 236 | 52 | 225 | 56 | 230 | 44 |
| LargeCap S&P 500 Index | 726 | 224 | 586 | 183 | 466 | 140 |
| LargeCap Value III | <1 | <1 | 2 | 2 | <1 | <1 |
| MidCap | 662 | 113 | 711 | 121 | 537 | 93 |

---

------

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Underwriting Fees for Periods Ended October 31<br>(amounts in thousands)** | **Underwriting Fees for Periods Ended October 31<br>(amounts in thousands)** | **Underwriting Fees for Periods Ended October 31<br>(amounts in thousands)** | **Underwriting Fees for Periods Ended October 31<br>(amounts in thousands)** | **Underwriting Fees for Periods Ended October 31<br>(amounts in thousands)** | **Underwriting Fees for Periods Ended October 31<br>(amounts in thousands)** | **Underwriting Fees for Periods Ended October 31<br>(amounts in thousands)** |
| | **2025** | **2025** | **2024** | **2024** | **2023** | **2023** |
| **Fund/Portfolio** | **Total<br>Underwriting<br> Commissions** | **Amount<br>Retained<br> by PFD** | **Total<br>Underwriting<br> Commissions** | **Amount<br>Retained<br> by PFD** | **Total<br>Underwriting<br> Commissions** | **Amount<br>Retained<br> by PFD** |
| MidCap S&P 400 Index | 9 | 9 | 9 | 9 | 8 | 8 |
| MidCap Value I | 70 | 11 | 85 | 15 | 93 | 17 |
| Money Market | 183 | 183 | 170 | 170 | 225 | 225 |
| Principal Capital Appreciation | 510 | 83 | 580 | 93 | 403 | 70 |
| Principal LifeTime Strategic Income | 67 | 54 | 44 | 26 | 19 | 16 |
| Principal LifeTime 2020 | 39 | 12 | 60 | 19 | 75 | 32 |
| Principal LifeTime 2030 | 194 | 61 | 196 | 51 | 298 | 57 |
| Principal LifeTime 2040 | 334 | 65 | 329 | 64 | 336 | 65 |
| Principal LifeTime 2050 | 454 | 68 | 482 | 76 | 482 | 78 |
| Principal LifeTime 2060 | <1 | <1 | <1 | <1 | <1 | <1 |
| Principal LifeTime 2070 |  |  | <1 | <1 | — <sup>(3)</sup> | — <sup>(3)</sup> |
| Principal LifeTime Hybrid Income | 34 | 34 | 27 | 27 | 38 | 38 |
| Principal LifeTime Hybrid 2015 | 172 | 172 | 105 | 105 | 57 | 57 |
| Principal LifeTime Hybrid 2020 | 76 | 76 | 96 | 96 | 96 | 96 |
| Principal LifeTime Hybrid 2025 | 256 | 256 | 285 | 285 | 207 | 207 |
| Principal LifeTime Hybrid 2030 | 377 | 377 | 278 | 278 | 151 | 151 |
| Principal LifeTime Hybrid 2035 | 190 | 190 | 127 | 127 | 99 | 99 |
| Principal LifeTime Hybrid 2040 | 313 | 313 | 202 | 202 | 116 | 116 |
| Principal LifeTime Hybrid 2045 | 111 | 111 | 111 | 111 | 68 | 68 |
| Principal LifeTime Hybrid 2050 | 110 | 110 | 81 | 81 | 74 | 74 |
| Principal LifeTime Hybrid 2055 | 84 | 84 | 71 | 71 | 33 | 33 |
| Principal LifeTime Hybrid 2060 | 46 | 46 | 35 | 35 | 21 | 21 |
| Principal LifeTime Hybrid 2065 | 20 | 20 | 10 | 10 | 7 | 7 |
| Principal LifeTime Hybrid 2070 | <1 | <1 | <1 | <1 | — <sup>(3)</sup> | — <sup>(3)</sup> |
| Real Estate Securities | 66 | 12 | 106 | 22 | 135 | 28 |
| SAM Balanced | 1419 | 463 | 1521 | 499 | 1628 | 512 |
| SAM Conservative Balanced | 568 | 232 | 585 | 307 | 693 | 301 |
| SAM Conservative Growth | 1334 | 377 | 1345 | 372 | 1438 | 332 |
| SAM Flexible Income | 381 | 164 | 390 | 195 | 666 | 319 |
| SAM Strategic Growth | 1284 | 300 | 1253 | 303 | 1206 | 247 |
| Short-Term Income | 327 | 71 | 291 | 81 | 323 | 100 |
| SmallCap | 146 | 25 | 168 | 31 | 190 | 37 |
| SmallCap Growth I | 1 | 1 | 2 | 2 | 2 | 2 |
| SmallCap S&P 600 Index | 6 | 6 | 8 | 8 | 7 | 7 |
| SmallCap Value II | <1 | <1 | 1 | 1 | <1 | <1 |
| Tax-Exempt Bond | 32 | 19 | 32 | 10 | 47 | 22 |

---

<sup>(1)</sup> International Bond Fund had not yet commenced operations as of the date of this SAI.

<sup>(2)</sup> Effective July 31, 2024, International Fund I changed its name to International Equity Fund.

<sup>(3)</sup> Period from March 1, 2023, date operations commenced, through October 31, 2023.

PFD does not charge fees on redemptions or repurchases of Fund shares. The amounts in the table above for Total Underwriting Commissions include any applicable contingent deferred sales charges and front-end sales charges.

**Rule 12b-1 Fees / Distribution Plans and Agreements**

In addition to the management and service fees, certain of the Funds' share classes are subject to a Rule 12b-1 Distribution Plan and Agreement (each, a "Plan" and, together, the "Plans"). The Board and initial shareholders of Classes A, C, J, and R-3 shares have approved and entered into a Plan. In adopting the Plans, the Board (including a majority of Independent Board Members) determined that there was a reasonable likelihood that the Plans would benefit the Funds and the shareholders of the affected classes. Among the possible benefits of the Plans include the potential for building and retaining Fund assets, as well as the ability to offer an incentive for registered representatives to provide ongoing servicing to shareholders.

------

The Plans provide that each Fund makes payments to the Fund's Distributor from assets of each share class that has a Plan to compensate the Distributor and other selling dealers, various banks, broker-dealers, and other financial intermediaries, for providing certain services to the Fund. Such services may include, but are not limited to:

• formulation and implementation of marketing and promotional activities;

• preparation, printing, and distribution of sales literature;

• preparation, printing, and distribution of prospectuses and the Fund reports to other-than-existing shareholders;

• obtaining such information with respect to marketing and promotional activities as the Distributor deems advisable;

• making payments to dealers and others engaged in the sale of shares or who engage in shareholder support services; and

• providing training, marketing, and support with respect to the sale of shares.

Each Fund pays the Distributor a fee after the end of each month at an annual rate as a percentage of the daily net asset value of the assets attributable to each share class as follows:

---

| | |
|:---|:---|
| &nbsp;&nbsp;**Share Class** | **Maximum Annualized Rule<br>12b-1 Fee** |
| A <sup>(1)(2)</sup> | 0.25% <sup>(3)</sup> |
| C <sup>(2)</sup> | 1.00% |
| J <sup>(2)</sup> | 0.15% |
| R-3 | 0.25% |

---

<sup>(1)</sup> Class A shares of the Money Market Fund are not subject to Rule 12b-1 fees.

<sup>(2)</sup> The Distributor also receives the proceeds of any CDSC imposed.

<sup>(3)</sup> The maximum annualized 12b-1 fee for Class A shares of the Government & High Quality Bond, LargeCap S&P 500 Index, and Short-Term Income Funds is 0.15%.

Effective December 31, 2015, the Distributor has contractually agreed to limit the distribution fees attributable to Class J normally payable by the Money Market Fund. This waiver is in place through February 28, 2026 and will reduce the Money Market Fund's distribution fees by 0.15%. It is expected that the fee waiver will continue to the period disclosed; however, PFI and the Distributor, the parties to the agreement, may agree to terminate the fee waiver prior to the end of the period.

The Distributor may remit on a continuous basis all of these sums to its investment representatives and other financial intermediaries as a trail fee in recognition of their services and assistance.

Currently, the Distributor makes payments to dealers on accounts for which such dealer is designated dealer of record. Payments are based on the average net asset value of the accounts invested in Classes A, C, J, or R-3 shares.

Under the Plans, the Funds have no legal obligation to pay any amount that exceeds the compensation limit. The Funds do not pay, directly or indirectly, interest, carrying charges, or other financing costs in association with these Plans. All fees paid under a Fund's Plan are paid to the Distributor, which is entitled to retain such fees paid by the Fund without regard to the expenses that it incurs.

For the fiscal year ended October 31, 2025, each Fund made the following 12b-1 payments to PFD, and PFD, from these 12b-1 payments, made the following payments to financial intermediaries that distribute and/or service the Fund's shares. The "Retained by PFD" column reflects the difference between the amount paid by the Fund to PFD and the amount of that 12b-1 fee paid by PFD to financial intermediaries. That difference/remainder is then used by PFD to pay for other 12b-1-eligible expenses. For the fiscal year ended October 31, 2025, the 12b-1-eligible expenses for each Fund were greater than the amount of the Fund's 12b-1 payments to PFD.

---

| | | | |
|:---|:---|:---|:---|
| **Fund/Portfolio** | **Paid by Fund to PFD<br>(amounts in thousands)** | **Paid by PFD to<br> Financial Intermediaries<br> (amounts in thousands)** | &nbsp;&nbsp;&nbsp;&nbsp;**Retained by PFD<br>(amounts in thousands)** |
| California Municipal | $988 | $904 | $84 |
| Core Fixed Income | 654 | 644 | 10 |
| Core Plus Bond | 339 | 333 | 6 |
| Diversified Income | 3345 | 3288 | 57 |
| Diversified International | 847 | 830 | 17 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| **Fund/Portfolio** | **Paid by Fund to PFD<br>(amounts in thousands)** | **Paid by PFD to<br> Financial Intermediaries<br> (amounts in thousands)** | &nbsp;&nbsp;&nbsp;&nbsp;**Retained by PFD<br>(amounts in thousands)** |
| Equity Income | 4001 | 3928 | 73 |
| Finisterre Emerging Markets Total Return Bond |  |  |  |
| Global Emerging Markets | 301 | 297 | 4 |
| Global Real Estate Securities | 129 | 125 | 4 |
| Government & High Quality Bond | 312 | 307 | 5 |
| Government Money Market |  |  |  |
| High Yield | 1244 | 1195 | 49 |
| Inflation Protection | 30 | 25 | 5 |
| International Bond<sup>(1)</sup> |  |  |  |
| International Equity | 6 | 6 |  |
| LargeCap Growth I | 2173 | 2090 | 83 |
| LargeCap S&P 500 Index | 3697 | 3563 | 134 |
| LargeCap Value III | 154 | 152 | 2 |
| MidCap | 6320 | 6259 | 61 |
| MidCap S&P 400 Index | 389 | 367 | 22 |
| MidCap Value I | 424 | 419 | 5 |
| Money Market |  |  |  |
| Overseas | 2 | 1 | 1 |
| Principal Capital Appreciation | 3686 | 3581 | 105 |
| Principal LifeTime Strategic Income | 494 | 488 | 6 |
| Principal LifeTime 2015 | 37 | 36 | 1 |
| Principal LifeTime 2020 | 1341 | 1341 |  |
| Principal LifeTime 2025 | 230 | 221 | 9 |
| Principal LifeTime 2030 | 2357 | 2340 | 17 |
| Principal LifeTime 2035 | 251 | 247 | 4 |
| Principal LifeTime 2040 | 1951 | 1935 | 16 |
| Principal LifeTime 2045 | 206 | 203 | 3 |
| Principal LifeTime 2050 | 1003 | 991 | 12 |
| Principal LifeTime 2055 | 140 | 139 | 1 |
| Principal LifeTime 2060 | 121 | 119 | 2 |
| Principal LifeTime 2065 | 26 | 26 |  |
| Principal LifeTime 2070 | 4 | 3 | 1 |
| Principal LifeTime Hybrid Income | 180 | 180 |  |
| Principal LifeTime Hybrid 2015 | 499 | 499 |  |
| Principal LifeTime Hybrid 2020 | 530 | 530 |  |
| Principal LifeTime Hybrid 2025 | 1055 | 1055 |  |
| Principal LifeTime Hybrid 2030 | 1064 | 1064 |  |
| Principal LifeTime Hybrid 2035 | 670 | 670 |  |
| Principal LifeTime Hybrid 2040 | 798 | 798 |  |
| Principal LifeTime Hybrid 2045 | 357 | 357 |  |
| Principal LifeTime Hybrid 2050 | 295 | $295 |  |
| Principal LifeTime Hybrid 2055 | 193 | 193 |  |
| Principal LifeTime Hybrid 2060 | 107 | 107 |  |
| Principal LifeTime Hybrid 2065 | 42 | 42 |  |
| Principal LifeTime Hybrid 2070 | 3 | 3 |  |
| Real Estate Securities | 878 | 851 | 27 |
| SAM Balanced | 8906 | 8750 | 156 |
| SAM Conservative Balanced | 3190 | 3159 | 31 |
| SAM Conservative Growth | 6571 | 6446 | 125 |
| SAM Flexible Income | 4470 | 4450 | 20 |
| SAM Strategic Growth | 4788 | 4665 | 123 |
| Short-Term Income | 803 | 748 | 55 |
| SmallCap | 948 | 915 | 33 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| **Fund/Portfolio** | **Paid by Fund to PFD<br>(amounts in thousands)** | **Paid by PFD to<br> Financial Intermediaries<br> (amounts in thousands)** | &nbsp;&nbsp;&nbsp;&nbsp;**Retained by PFD<br>(amounts in thousands)** |
| SmallCap Growth I | 141 | 134 | 7 |
| SmallCap S&P 600 Index | 427 | 409 | 18 |
| SmallCap Value II | 43 | 42 | 1 |
| Tax-Exempt Bond | 714 | 696 | 18 |

---

<sup>(1)</sup> International Bond Fund had not yet commenced operations as of the date of this SAI.

**Custodian**

The custodian of the portfolio securities and cash assets of the Funds is The Bank of New York Mellon, One Wall Street, New York, NY 10286. The custodian performs no managerial or policy-making functions for the Funds.

**Service Agreement and Administrative Services Agreement**

The Service Agreement (for Classes R-3 and R-5 Shares) provides for PGI to provide certain personal services to shareholders (plan sponsors) and beneficial owners (plan members) of those classes. These personal services include:

• responding to plan sponsor and plan member inquiries;

• providing information regarding plan sponsor and plan member investments; and

• providing other similar personal services or services related to the maintenance of shareholder accounts as contemplated by National Association of Securities Dealers (NASD) Rule 2830 (or any successor thereto).

As compensation for these services, Principal Funds will pay PGI service fees equal to 0.25% of the average daily net assets attributable to each of the R-3 and R-5 Classes. The service fees are calculated and accrued daily and paid monthly to PGI (or at such other intervals as Principal Funds and PGI may agree).

The Administrative Services Agreement (for Classes R-3 and R-5 Shares) provides for PGI to provide services to beneficial owners of Fund shares. Such services include:

• receiving, aggregating, and processing purchase, exchange, and redemption requests from plan shareholders;

• providing plan shareholders with a service that invests the assets of their accounts in shares pursuant to pre-authorized instructions submitted by plan members;

• processing dividend payments from the Funds on behalf of plan shareholders and changing shareholder account designations;

• acting as shareholder of record and nominee for plans;

• maintaining account records for shareholders and/or other beneficial owners;

• providing notification to plan shareholders of transactions affecting their accounts;

• forwarding prospectuses, financial reports, tax information, and other communications from the Fund to beneficial owners;

• distributing, receiving, tabulating, and transmitting proxy ballots of plan shareholders; and

• other similar administrative services.

As compensation for these services, Principal Funds will pay PGI service fees equal to 0.07% of the average daily net assets of the R-3 Class and 0.01% of the average daily net assets of the R-5 Class. The service fees are calculated and accrued daily and paid monthly to PGI (or at such other intervals as Principal Funds and PGI may agree).

PGI will generally, at its discretion, appoint (and may at any time remove) other parties, including companies affiliated with PGI, as its agent to carry out the provisions of the Service Agreement and/or the Administrative Services Agreement. However, the appointment of an agent shall not relieve PGI of any of its responsibilities or liabilities under those agreements. Any fees paid to agents under these agreements shall be the sole responsibility of PGI.

**Transfer Agent**

The Transfer Agency Agreement provides for Principal Shareholder Services, Inc. ("PSS") (711 High Street, Des Moines, IA 50392), an affiliate of PGI, to act as transfer and shareholder servicing agent for the Classes A, C, J, Institutional, R-3, R-5, and R-6.

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• For Classes A, C, and R-6, and Institutional Class shares, the Registrant pays PSS a fee for the services provided pursuant to the Transfer Agency Agreement in an amount equal to the costs incurred by PSS for providing such services.

• For Class J shares, the Registrant pays PSS a fee for the services provided pursuant to the Transfer Agency Agreement in an amount that includes profit.

The Registrant pays PSS for the following services for Classes A, C, J, and R-6, and Institutional Class shares:

• issuance, transfer, conversion, cancellation, and registry of ownership of Fund shares, and maintenance of open account system;

• preparation and distribution of dividend and capital gain payments to shareholders;

• delivery, redemption, and repurchase of shares, and remittances to shareholders;

• the tabulation of proxy ballots and the preparation and distribution to shareholders of notices, proxy statements and proxies, reports, confirmation of transactions, prospectuses, and tax information;

• communication with shareholders concerning the above items; and

• use of its best efforts to qualify the capital stock of the Funds for sale in states and jurisdictions as directed by the Funds.

The Registrant does not pay for these services for Classes R-3 and R-5 shares. PSS will pay operating expenses attributable to Classes R-3 and R-5 shares related to (a) the cost of meetings of shareholders and (b) the costs of initial and ongoing qualification of the capital stock of the Funds for sale in states and jurisdictions.

**Securities Lending Agent**

The Bank of New York Mellon serves as the securities lending agent for the Funds. Information regarding securities lending during the Funds' fiscal year ended October 31, 2025 is as follows:

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Fund** | Gross income (including from cash collateral reinvestment) | Fees paid to securities lending agent from a revenue split | Fees paid for any cash collateral management service that are not included in revenue split | Administrative fees not included in revenue split | Indemnification fees not included in revenue split | Net rebate paid to borrower | Other fees not included in revenue split | Aggregate fees/ compensation | Net income from securities lending |
| Core Fixed Income | $353954 | $6643 | $— | $— | $— | $287498 | $— | $294141 | $59813 |
| Core Plus Bond | 191859 | 3651 |  |  |  | 155325 |  | 158976 | 32883 |
| Diversified Income | 1697229 | 44845 |  |  |  | 1248578 |  | 1293423 | 403806 |
| Diversified International | 327625 | 4738 |  |  |  | 280248 |  | 284985 | 42640 |
| Equity Income | 1529324 | 24856 |  |  |  | 1280751 |  | 1305608 | 223717 |
| Finisterre Emerging Markets Total Return Bond | 498965 | 14728 |  |  |  | 351669 |  | 366397 | 132568 |
| Global Emerging Markets | 203812 | 13493 |  |  |  | 68874 |  | 82367 | 121445 |
| Global Real Estate Securities | 3453 | 151 |  |  |  | 1947 |  | 2098 | 1355 |
| Government & High Quality Bond | 57 |  |  |  |  | 59 |  | 59 | (1) |
| High Yield | 3536534 | 110090 |  |  |  | 2435556 |  | 2545646 | 990888 |
| Inflation Protection | 7762 | 51 |  |  |  | 7252 |  | 7302 | 459 |
| International Equity | 1352108 | 35968 |  |  |  | 992425 |  | 1028393 | 323716 |
| LargeCap Growth I | 42296 | 853 |  |  |  | 33751 |  | 34604 | 7693 |
| LargeCap S&P 500 Index | 79480 | 19991 |  |  |  | (120437) |  | (100446) | 179926 |
| LargeCap Value III | 214828 | 22210 |  |  |  | (7310) |  | 14901 | 199928 |
| MidCap | 2182966 | 33339 |  |  |  | 1849559 |  | 1882898 | 300067 |
| MidCap S&P 400 Index | 145141 | 2387 |  |  |  | 121266 |  | 123652 | 21489 |
| MidCap Value I | 84184 | 4617 |  |  |  | 37984 |  | 42601 | 41584 |
| Overseas | 394956 | 9518 |  |  |  | 299764 |  | 309281 | 85675 |

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------

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| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Fund** | Gross income (including from cash collateral reinvestment) | Fees paid to securities lending agent from a revenue split | Fees paid for any cash collateral management service that are not included in revenue split | Administrative fees not included in revenue split | Indemnification fees not included in revenue split | Net rebate paid to borrower | Other fees not included in revenue split | Aggregate fees/ compensation | Net income from securities lending |
| Principal Capital Appreciation | 16688 | 167 |  |  |  | 15017 |  | 15184 | 1504 |
| Short-Term Income | 232495 | 2609 |  |  |  | 206398 |  | 209007 | 23489 |
| SmallCap | 324848 | 30140 |  |  |  | 23442 |  | 53582 | 271266 |
| SmallCap Growth I | 1475153 | 110886 |  |  |  | 365875 |  | 476761 | 998392 |
| SmallCap S&P 600 Index | 233093 | 6902 |  |  |  | 164041 |  | 170944 | 62150 |
| SmallCap Value II | 433307 | 22345 |  |  |  | 209575 |  | 231920 | 201387 |

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The services provided by The Bank of New York Mellon, as securities lending agent for the Funds, include: coordinating, with the Funds, the selection of securities to be loaned; negotiating loan terms; monitoring the value of securities loaned and corresponding collateral, marking to market daily; coordinating collateral movements; monitoring dividends; and transferring, recalling, and arranging the return of loaned securities to the Funds upon loan termination.

**MULTIPLE CLASS STRUCTURE**

The Board has adopted a multiple class plan (the "Multiple Class Plan") pursuant to U.S. Securities and Exchange Commission ("SEC") Rule 18f-3. The share classes each Fund offers are identified in the chart included under the heading "History of the Funds." The share classes offered under the Multiple Class Plan include: Classes A, C, J, Institutional, R-3, R-5, and R-6.

**Contingent Deferred Sales Charges ("CDSC")**

Class A shares are generally sold with a sales charge that is a variable percentage based on the amount of the purchase, as described in the Prospectus. Certain redemptions of Class A shares within 12 months of purchase may be subject to a CDSC, as described in the Prospectus.

Class C shares are not subject to a sales charge at the time of purchase but are subject to a 1% CDSC on shares redeemed within 12 months of purchase, as described in the Prospectus.

Class J shares are sold without any front-end sales charge. A CDSC of 1% is imposed if Class J shares are redeemed within 18 months of purchase, as described in the Prospectus.

Sales charge waivers and reductions may be available depending on whether shares are purchased directly from the Fund or through a financial intermediary, as described in the Prospectus and Appendix B to the Prospectus, titled "Intermediary-Specific Sales Charge Waivers and Reductions."

For Classes A, C, and J shares purchased from the Fund or through an intermediary not identified on Appendix B to the Prospectus, the CDSC is waived on shares:

• redeemed within 90 days after an account is re-registered due to a shareholder's death;

• redeemed to pay surrender fees;

• redeemed to pay retirement plan fees;

• redeemed involuntarily from accounts with small balances;

• redeemed due to the shareholder's disability (as defined by the Internal Revenue Code) provided the shares were purchased prior to the disability;

• redeemed from retirement plans to satisfy minimum distribution rules under the Internal Revenue Code;

• redeemed from a retirement plan to assure the plan complies with the Internal Revenue Code;

• redeemed from retirement plans qualified under Section 401(a) of the Internal Revenue Code due to the plan participant's death, disability, retirement, or separation from service after attaining age 55;

• redeemed from retirement plans to satisfy excess contribution rules under the Internal Revenue Code; or

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• redeemed using a systematic withdrawal plan (up to 1% per month (measured cumulatively with respect to non-monthly plans) of the value of the fund account at the time, and beginning on the date, the systematic withdrawal plan begins). (The free withdrawal privilege not used in a calendar year is not added to the free withdrawal privileges for any following year.)

For Class J shares purchased from the Fund or through an intermediary not identified on Appendix B to the Prospectus, the CDSC also is waived on shares:

• redeemed that were purchased pursuant to the Small Amount Force Out program (SAFO); or

• of the Money Market Fund redeemed within 30 days of the initial purchase if the redemption proceeds are transferred to another Principal IRA, defined as either a fixed or variable annuity issued by Principal Life Insurance Company to fund an IRA, a Principal Bank IRA product, or a WRAP account IRA sponsored by Principal Securities, Inc. (PSI).

Institutional Class and Classes R-3, R-5, and R-6 shares are available without any front-end sales charge or CDSC. Classes R-3 and R-5 shares are available through employer-sponsored retirement plans. Such plans may impose fees in addition to those charged by the Funds. Classes R-3 and R-5 shares are subject to asset-based charges (described above). Class R-6 shares are generally available through the defined contribution investment only channel.

**INTERMEDIARY COMPENSATION**

<u>Additional Payments to Intermediaries.</u>

Shares of the Funds are sold primarily through intermediaries, such as brokers, dealers, investment advisors, banks, trust companies, pension plan consultants, retirement plan administrators, and insurance companies.

In addition to payments pursuant to 12b-1 plans, PGI or its affiliates enter into agreements with some intermediaries pursuant to which the intermediaries receive payments for providing services relating to Fund shares. Examples of such services are administrative, networking, recordkeeping, sub-transfer agency, and/or shareholder services. In some situations, the Funds will reimburse PGI or its affiliates for making such payments; in others, the Funds make such payments directly to intermediaries.

For Classes R-3 and R-5 shares, such compensation is generally paid out of the Service Fees and Administrative Services Fees that are disclosed in the Prospectus as Other Expenses. Such compensation is generally based on the average asset value of Fund shares for the relevant share class held by clients of the intermediary.

In addition, PGI or its affiliates pay, without reimbursement from the Funds, compensation from their own resources, to certain intermediaries that support the distribution of shares of the Funds or provide services to Fund shareholders. In addition, PGI or its affiliates pay, without reimbursement from the Funds, compensation from their own resources to certain large plan sponsors to help cover the cost of providing educational materials to plan participants.

The amounts paid to intermediaries vary by share class and by Fund.

Principal Life Insurance Company is one such intermediary that provides services relating to Fund shares held in employee benefit plans, and it is typically paid all of the Service Fees and Administrative Services Fees pertaining to such plans.

Plan recordkeepers, who may have affiliated financial intermediaries that sell shares of the Funds, may be paid additional amounts. In addition, some financial intermediaries or their affiliates receive compensation from PGI or its affiliates for maintaining retirement plan platforms that facilitate trading by affiliated and non-affiliated financial intermediaries and recordkeeping for retirement plans.

A number of factors may be considered in determining the amount of these additional payments, including each financial intermediary's Fund sales and assets, as well as the willingness and ability of the financial intermediary to give the Distributor access to its Financial Professionals for educational and marketing purposes. In some cases, intermediaries will include the Funds on a preferred list. The Distributor's goals include making the Financial Professionals who interact with current and prospective investors and shareholders more knowledgeable about the Funds so that they can provide suitable information and advice about the Funds and related investor services. The amounts paid to intermediaries vary by Fund and by share class.

Additionally, in some cases, the Distributor and its affiliates will provide payments or reimbursements in connection with the costs of conferences, educational seminars, training, and marketing efforts related to the Funds. Such activities may be sponsored by intermediaries or the Distributor. The costs associated with such activities may include travel, lodging, entertainment, and meals. In some cases, the Distributor will also provide payment or reimbursement for expenses associated with transactions ("ticket") charges and general marketing expenses. Other compensation

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may be paid to the extent not prohibited by applicable laws, regulations, or the rules of any self-regulatory agency, such as FINRA.

The payments described in this SAI may create a conflict of interest by influencing your Financial Professional or your intermediary to recommend a Fund over another investment, or to recommend one share class of a Fund over another share class. Ask your Financial Professional or visit your intermediary's website for more information about the total amounts paid to them by PGI and its affiliates, and by sponsors of other investment companies your Financial Professional may recommend to you.

Your intermediary may charge you additional fees other than those disclosed in the Prospectus. Ask your Financial Professional about any fees and commissions they charge.

Although a Fund may use brokers who sell shares of the Funds to effect portfolio transactions, the sale of shares is not considered as a factor by the Fund's sub-advisors when selecting brokers to effect portfolio transactions.

As of December 1, 2025, the Distributor anticipates that the firms that will receive additional payments as described in the Additional Payments to Intermediaries section above (other than sales charges, Rule 12b-1 fees, and expense reimbursement) include, but are not necessarily limited to, the following:

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| | | |
|:---|:---|:---|
| ADP Broker Dealer, Inc | J.P. Morgan Chase (HSA Business) | Putnam Investors Services |
| AIG SunAmerica | J.P. Morgan Securities, LLC | Raymond James & Associates, Inc. |
| Alight Financial Solutions LLC | Janney Montgomery Scott | Raymond James Financial Services, Inc |
| American Century Investments | John Hancock Life Insurance Company | RBC Capital Markets, Llc |
| American United Life Insurance Co. | &nbsp;&nbsp;&nbsp;of New York | Reliance Trust Company |
| Ameriprise Financial Services, LLC | John Hancock Life Insurance Company USA | Robert W. Baird & Co. Incorporated |
| Ameritas Investment Company, Llc | John Hancock Trust Co. | Sami Brokerage LLC |
| Ascensus | Kestra Investment Services, LLC | Sammons Institutional Group |
| B3 Wealth Strategies | Krilogy | Sanctuary Securities, Inc |
| Benefit Plan Administrators | Lincoln Retirement Services Company | Soltis Investment Advisors Llc |
| Benefit Trust Company | LPL Enterprise, LLC | Standard Insurance Company |
| BNY Mellon NA | LPL Financial LLC | Stifel Nicolaus & Company, Inc. |
| Broadridge Business Process Outsourcing, LLC | Merrill Lynch Pierce Fenner & Smith Incorporated | T. Rowe Price Retirement Plan Services |
| Cape Securities Inc. | MidAtlantic Capital Corporation | Thrivent Financial for Lutherans |
| Cetera Wealth Services, LLC | Midland National Life Insurance Company | TIAA-CREF |
| Charles Schwab & Co., Inc. | Minnesota Life Insurance Company | Towerpoint Wealth, LLC |
| Citigroup Global Markets Inc. | Morgan Stanley | Troxell Financial |
| Columbia Management Investment | National Financial Services | U.S. Bancorp Advisors, LLC |
| &nbsp;&nbsp;&nbsp;Advisers, LLC | Nationwide Investment Services Corp | U.S. Bancorp Investments, Inc |
| Commonwealth Financial Network | New York Life | UBS Financial Services Inc |
| Creative Planning | Newport Group, The | USI Advisors |
| Cyndeo Wealth Partners | Next Financial Group, Inc. | USI Securities Inc |
| Edward Jones | Next Level Private LLC | VALIC Retirement Services Company |
| Empower Annuity Insurance Company | Northwestern Mutual Investment Services, Llc | Vanguard Brokerage Services |
| &nbsp;&nbsp;&nbsp;of America | Oppenheimer & Co. | Vanguard Group, The |
| Empower Financial Services Inc | Osaic Wealth, Inc | Voya Institutional Plan Services, LLC |
| Equitable Financial Life Insurance Company | Pershing LLC | Voya Institutional Trust Co. |
| Fidelity Investment Institutional Operations Co. | Plan Administrators, Inc. | Wave Wealth Management LLC |
| Fortem Financial Group LLC | Prime Capital Financial | Wealth Enhancement Brokerage Services |
| Future Capital Management Inc | Principal Bank | Wells Fargo Advisors Financial Network LLC |
| Genesis Employee Benefits | Principal Life Insurance Company | Wells Fargo Advisors LLC |
| Global Retirement Partners LLC | Principal Securities, Inc. | Wells Fargo Clearing Services LLC |
| Goldman Sachs & Co. LLC | Private Client Services LLC | Wells Fargo Community Bank Advisors |
| Hightower Advisors, Llc | Purshe Kaplan Sterling Investments, Inc. |  |

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The preceding list is subject to change at any time without notice. Any additions, modifications, or deletions to the financial intermediaries identified in this list that have occurred since the date noted above are not reflected. To obtain a current list, call 1-800-222-5852.

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**BROKERAGE ALLOCATION AND OTHER PRACTICES**

**Brokerage on Purchases and Sales of Securities**

All orders for the purchase or sale of portfolio securities are placed on behalf of a Fund by PGI or by the Fund's sub-advisor pursuant to the terms of the applicable sub-advisory agreement. In distributing brokerage business arising out of the placement of orders for the purchase and sale of securities for any Fund, the objective of PGI and of each Fund's sub-advisor is to obtain the best overall terms. In pursuing this objective, PGI or the sub-advisor considers all matters it deems relevant, including the breadth of the market in the security, the price of the security, the financial condition and executing capability of the broker or dealer, confidentiality, including trade anonymity, and the reasonableness of the commission, if any (for the specific transaction and on a continuing basis). This may mean in some instances that PGI or a sub-advisor will pay a broker commissions that are in excess of the amount of commissions another broker might have charged for executing the same transaction when PGI or the sub-advisor believes that such commissions are reasonable in light of a) the size and difficulty of the transaction, b) the quality of the execution provided, and c) the level of commissions paid relative to commissions paid by other institutional investors. Such factors are viewed both in terms of that particular transaction and in terms of all transactions that broker executes for accounts over which PGI or the sub-advisor exercises investment discretion. The Board has also adopted a policy and procedure designed to prevent each of the Funds from compensating a broker/dealer for promoting or selling Fund shares by directing brokerage transactions to that broker/dealer for the purpose of compensating the broker/dealer for promoting or selling Fund shares. Therefore, PGI or a sub-advisor may not compensate a broker/dealer for promoting or selling Fund shares by directing brokerage transactions to that broker/dealer for the purpose of compensating the broker/dealer for promoting or selling Fund shares. PGI or a sub-advisor may purchase securities in the over-the-counter market, utilizing the services of principal market makers unless better terms can be obtained by purchases through brokers or dealers, and may purchase securities listed on the NYSE from non-Exchange members in transactions off the Exchange.

PGI or a sub-advisor may give consideration in the allocation of business to services performed by a broker (e.g., the furnishing of statistical data and research generally consisting of, but not limited to, information of the following types: analyses and reports concerning issuers, industries, economic factors, and trends; portfolio strategy; performance of client accounts; and access to research analysts, corporate management personnel, and industry experts). If any such allocation is made, the primary criteria used will be to obtain the best overall terms for such transactions or terms that are reasonable in relation to the research or brokerage services provided by the broker or dealer when viewed in terms of either a particular transaction or a sub-advisor's overall responsibilities to the accounts under its management. PGI or a sub-advisor generally pays additional commission amounts for such research services. Statistical data and research information received from brokers or dealers as described above may be useful in varying degrees and PGI or a sub-advisor may use it in servicing some or all of the accounts it manages.

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PGI and the sub-advisors allocated portfolio transactions for the Funds indicated in the following table to certain brokers for the year ended October 31, 2025 due to research services provided by such brokers. The table also indicates the commissions paid to such brokers as a result of these portfolio transactions.

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| | | |
|:---|:---|:---|
| **Fund** | **Amount of Transactions** <br>**because of Research Services Provided** | **Related Commissions Paid** |
| Diversified Income | $204685890 | $109763 |
| Diversified International | 1098433462 | 628979 |
| Equity Income | 3088826129 | 895172 |
| Global Emerging Markets | 2149846139 | 1283885 |
| Global Real Estate Securities | 590987965 | 350812 |
| International Equity | 3213148243 | 1765667 |
| LargeCap Growth I | 4172880004 | 592180 |
| LargeCap S&P 500 Index | 697224865 | 116792 |
| LargeCap Value III | 4114985866 | 968534 |
| MidCap | 9775868226 | 2389301 |
| MidCap S&P 400 Index | 188370484 | 78772 |
| MidCap Value I | 4008399481 | 1211743 |
| Overseas | 807515814 | 710108 |
| Principal Capital Appreciation | 4462718450 | 1010953 |
| Real Estate Securities | 1825827378 | 1032253 |
| SmallCap | 1134235293 | 700958 |
| SmallCap Growth I | 1277913033 | 828450 |
| SmallCap S&P 600 Index | 418227253 | 267797 |
| SmallCap Value II | 768078462 | 2819556 |

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Subject to the rules promulgated by the SEC, as well as other regulatory requirements, the Board has approved procedures whereby a Fund may purchase securities that are offered in underwritings in which an affiliate of a sub-advisor, or PGI, participates. These procedures prohibit a Fund from directly or indirectly benefiting a sub-advisor affiliate or PGI affiliate in connection with such underwritings. In addition, for underwritings where a sub-advisor affiliate or PGI participates as a principal underwriter, certain restrictions may apply that could, among other things, limit the amount of securities that a Fund could purchase in the underwritings. The sub-advisor shall determine the amounts and proportions of orders allocated to the sub-advisor or affiliate. The Board will receive quarterly reports on these transactions.

The Board has approved procedures that permit a Fund to effect a purchase or sale transaction between the Fund and any other affiliated investment company or between a Fund and affiliated persons of the Fund under limited circumstances prescribed by SEC Rules. Any such transaction must be effected without any payment other than a cash payment for the securities, for which a market quotation is readily available, at the current market price; must be consistent with the investment objective, investment strategy, and risk profile of the Fund; and no brokerage commission or fee (except for customary transfer fees), or other remuneration may be paid in connection with the transaction. The Board will receive quarterly reports on these transactions.

The Board has also approved procedures that permit a Fund's sub-advisor(s) to place portfolio trades with an affiliated broker under circumstances prescribed by SEC Rules 17e-1 and 17a-10. The procedures require that total commissions, fees, or other remuneration received or to be received by an affiliated broker must be reasonable and fair compared to the commissions, fees, or other remuneration received by other brokers in connection with comparable transactions involving similar securities being purchased or sold on a securities exchange during a comparable time period. The Board will receive quarterly reports on these transactions.

Purchases and sales of debt securities and money market instruments usually are principal transactions; portfolio securities are normally purchased directly from the issuer or from an underwriter or marketmakers for the securities. Such transactions are usually conducted on a net basis with a Fund paying no brokerage commissions. Purchases from underwriters include a commission or concession paid by the issuer to the underwriter, and the purchases from dealers serving as marketmakers include the spread between the bid and asked prices.

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The following table shows the brokerage commissions paid during the periods indicated.

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| | | | |
|:---|:---|:---|:---|
| **Total Brokerage Commissions Paid for Periods Ended October 31** | **Total Brokerage Commissions Paid for Periods Ended October 31** | **Total Brokerage Commissions Paid for Periods Ended October 31** | **Total Brokerage Commissions Paid for Periods Ended October 31** |
| **Fund/Portfolio** | **2025** | **2024** | **2023** |
| California Municipal | $— | $— | $772 |
| Core Fixed Income |  |  | 1702 |
| Core Plus Bond | 10718 |  | 88 |
| Diversified Income | 196323 | 210787 | 153698 |
| Diversified International | 1775700 | 4516568 | 3538818 |
| Equity Income | 1437686 | 1483285 | 1644750 |
| Global Emerging Markets | 4261175 | 2043339 | 167018 |
| Global Real Estate Securities | 837602 | 1095112 | 1206464 |
| High Yield | 252451 | 35050 |  |
| Inflation Protection | 43279 | 49563 | 49403 |
| International Equity | 5310536 | 425707 | 150543 |
| LargeCap Growth I | 1385386 | 1591302 | 1152400 |
| LargeCap S&P 500 Index | 180841 | 75367 | 117105 |
| LargeCap Value III | 1184132 | 919894 | 847153 |
| MidCap | 4074670 | 3097643 | 2248485 |
| MidCap S&P 400 Index | 126785 | 159485 | 49991 |
| MidCap Value I | 1455014 | 1492869 | 1225482 |
| Overseas | 1163074 | 1819972 | 2178421 |
| Principal Capital Appreciation | 1719126 | 1077596 | 1224424 |
| Real Estate Securities | 1851387 | 2110033 | 1268659 |
| SAM Balanced | 1371646 | 30860 | 46400 |
| SAM Conservative Balanced | 378019 | 9720 | 14280 |
| SAM Conservative Growth | 1112546 | 17380 | 28720 |
| SAM Flexible Income | 467126 | 15050 | 22740 |
| SAM Strategic Growth | 1049025 | 12000 | 22620 |
| SmallCap | 1295602 | 1739559 | 594044 |
| SmallCap Growth I | 1629370 | 2032254 | 1484968 |
| SmallCap S&P 600 Index | 441715 | 154187 | 148439 |
| SmallCap Value II | 1362355 | 1838368 | 1308934 |
| Tax-Exempt Bond | 100 |  |  |

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Primary reasons for changes in brokerage commissions for those Funds with relatively greater variations for the three years were changes in commission rates; changes in Fund size; changes in market conditions; changes in money managers of certain Funds; and implementation of investment strategies. In some cases, such events required substantial portfolio restructurings, resulting in increased securities transactions and brokerage commissions.

Brokerage commissions from the portfolio transactions effected for the Funds were paid to brokers affiliated with PGI or such Fund's sub-advisors for the fiscal years ended October 31 as follows:

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Fund** | **Affiliated Advisor/Sub-Advisor** | **Affiliated Broker<br>Receiving Commissions** | **2025 Commissions Paid to Affiliated Broker** | **% of Fund's Total<br>Commissions** | **% of<br>Dollar Amount<br>of Fund's<br>Commissionable<br>Transactions** |
| **Diversified Income** | **Diversified Income** | **Diversified Income** | **Diversified Income** | **Diversified Income** | **Diversified Income** |
|  | Spectrum Asset Management, Inc. | SAMI Brokerage LLC\* | 6056 | 3.08% | 1.63% |
| **Total** | **Total** | **Total** | **$6056** | **3.08%** | **1.63%** |

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\*SAMI Brokerage LLC is a member of the Principal Financial Group.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Fund** | **Affiliated Advisor/Sub-Advisor** | **Affiliated Broker<br>Receiving Commissions** | **2024 Commissions Paid to Affiliated Broker** | **% of Fund's Total<br>Commissions** | **% of<br>Dollar Amount<br>of Fund's<br>Commissionable<br>Transactions** |
| **Diversified Income** | **Diversified Income** | **Diversified Income** | **Diversified Income** | **Diversified Income** | **Diversified Income** |
|  | Spectrum Asset Management, Inc. | SAMI Brokerage LLC\* | 4217 | 2.00% | 1.27% |
| **Total** | **Total** | **Total** | **$4217** | **2.00%** | **1.27%** |

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\*SAMI Brokerage LLC is a member of the Principal Financial Group.

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| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **Fund** | **Affiliated Advisor/Sub-Advisor** | **Affiliated Broker<br>Receiving Commissions** | **2023<br>Commissions Paid to Affiliated Broker** | **% of Fund's Total<br>Commissions** | **% of<br>Dollar Amount<br>of Fund's<br>Commissionable<br>Transactions** |
| **Diversified Income** | **Diversified Income** | **Diversified Income** | **Diversified Income** | **Diversified Income** | **Diversified Income** |
|  | Spectrum Asset Management, Inc. | SAMI Brokerage LLC\* | 14022 | 9.12% | 1.48% |
| **Total** | **Total** | **Total** | **$14022** | **9.12%** | **1.48%** |

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\*SAMI Brokerage LLC is a member of the Principal Financial Group.

Material differences, if any, between the percentage of a Fund's brokerage commissions paid to a broker and the percentage of transactions effected through that broker reflect the commission rates the sub-advisor has negotiated with the broker. Commission rates a sub-advisor pays to brokers may vary and reflect such factors as the trading volume placed with a broker, the type of security, the market in which a security is traded and the trading volume of that security, the types of services provided by the broker (i.e., execution services only or additional research services), and the quality of a broker's execution.

The following table indicates the value of each Fund's aggregate holdings, in thousands, of the securities of its regular brokers or dealers for the fiscal year ended October 31, 2025.

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| | | |
|:---|:---|:---|
| **Holdings of Securities of Principal Funds, Inc. Regular Brokers and Dealers** | **Holdings of Securities of Principal Funds, Inc. Regular Brokers and Dealers** | **Holdings of Securities of Principal Funds, Inc. Regular Brokers and Dealers** |
| <br>**Fund** | <br>**Broker or Dealer** | **Holdings**<br>**(in thousands)** |
| Core Fixed Income Fund | Bank of America | $94349 |
|  | Bank of New York Mellon Corp/The | 78848 |
|  | Citigroup Inc | 91692 |
|  | Goldman Sachs Group Inc/The | 100593 |
|  | Jefferies Group LLC | 64506 |
|  | JPMorgan Chase & Co | 104626 |
|  | Morgan Stanley | 107259 |
| Core Plus Bond Fund | Bank of America | 1966 |
|  | Barclays PLC | 781 |
|  | Citigroup Inc | 1703 |
|  | Goldman Sachs Group Inc/The | 4416 |
|  | HSBC Holdings PLC | 2033 |
|  | JPMorgan Chase & Co | 3686 |
|  | Morgan Stanley | 8672 |
|  | Royal Bank of Canada | 998 |
|  | UBS Group AG | 1434 |
| Diversified Income Fund | Bank of America | 22136 |
|  | Bank of Montreal | 2250 |
|  | Bank of New York Mellon Corp/The | 6827 |
|  | Barclays PLC | 6076 |
|  | BNP Paribas SA | 8520 |
|  | Citigroup Inc | 14946 |
|  | Goldman Sachs Group Inc/The | 12961 |
|  | HSBC Holdings PLC | 5081 |
|  | Jefferies Group LLC | 88 |
|  | JPMorgan Chase & Co | 19547 |
|  | Morgan Stanley | 12305 |

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| | | |
|:---|:---|:---|
| **Holdings of Securities of Principal Funds, Inc. Regular Brokers and Dealers** | **Holdings of Securities of Principal Funds, Inc. Regular Brokers and Dealers** | **Holdings of Securities of Principal Funds, Inc. Regular Brokers and Dealers** |
| <br>**Fund** | <br>**Broker or Dealer** | **Holdings**<br>**(in thousands)** |
|  | Royal Bank of Canada | 9870 |
|  | Stifel Financial Corp | 41 |
|  | UBS Group AG | 5749 |
| Equity Income Fund | Bank of America | 238728 |
|  | Citigroup Inc | 106384 |
|  | JPMorgan Chase & Co | 293460 |
|  | Morgan Stanley | 294908 |
| High Yield Fund | Barclays PLC | 61551 |
|  | JPMorgan Chase & Co | 36710 |
|  | UBS Group AG | 76425 |
| LargeCap Growth Fund I | Bank of America | 694 |
|  | Bank of New York Mellon Corp/The | 144 |
|  | Citigroup Inc | 799 |
|  | Goldman Sachs Group Inc/The | 299 |
|  | Jefferies Group LLC | 55 |
| LargeCap S&P 500 Index Fund | Bank of America | 65567 |
|  | Bank of New York Mellon Corp/The | 13702 |
|  | Citigroup Inc | 33547 |
|  | Goldman Sachs Group Inc/The | 43016 |
|  | JPMorgan Chase & Co | 154004 |
|  | Morgan Stanley | 35817 |
| LargeCap Value Fund III | Bank of America | 65432 |
|  | Bank of New York Mellon Corp/The | 1276 |
|  | Citigroup Inc | 2736 |
|  | Goldman Sachs Group Inc/The | 4049 |
|  | Jefferies Group LLC | 117 |
|  | JPMorgan Chase & Co | 27214 |
|  | Morgan Stanley | 3408 |
|  | Stifel Financial Corp | 208 |
|  | Virtu Financial Inc | 45 |
| MidCap S&P 400 Index Fund | Jefferies Group LLC | 3282 |
|  | Stifel Financial Corp | 4555 |
| MidCap Value Fund I | Bank of New York Mellon Corp/The | 1390 |
|  | Jefferies Group LLC | 118 |
|  | Stifel Financial Corp | 3317 |
|  | Virtu Financial Inc | 7037 |
| Money Market Fund | Barclays PLC | 26133 |
|  | HSBC Holdings PLC | 16800 |
|  | JPMorgan Chase & Co | 5989 |
| Overseas Fund | Barclays PLC | 26690 |
|  | BNP Paribas SA | 28814 |
|  | HSBC Holdings PLC | 4696 |
| Principal Capital Appreciation Fund | JPMorgan Chase & Co | 160649 |
|  | Morgan Stanley | 36500 |
| Short-Term Income Fund | Bank of America | 19273 |
|  | Bank of Montreal | 16632 |
|  | Bank of New York Mellon Corp/The | 15102 |
|  | Barclays PLC | 7159 |
|  | BNP Paribas SA | 18850 |
|  | Citigroup Inc | 45283 |
|  | Goldman Sachs Group Inc/The | 68097 |
|  | JPMorgan Chase & Co | 69318 |
|  | Morgan Stanley | 73740 |
|  | Royal Bank of Canada | 26046 |
|  | UBS Group AG | 14895 |

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| | | |
|:---|:---|:---|
| **Holdings of Securities of Principal Funds, Inc. Regular Brokers and Dealers** | **Holdings of Securities of Principal Funds, Inc. Regular Brokers and Dealers** | **Holdings of Securities of Principal Funds, Inc. Regular Brokers and Dealers** |
| <br>**Fund** | <br>**Broker or Dealer** | **Holdings**<br>**(in thousands)** |
| SmallCap Fund | Stifel Financial Corp | 27049 |
| SmallCap Growth Fund I | Stifel Financial Corp | 9766 |
| SmallCap S&P 600 Index Fund | Virtu Financial Inc | 2244 |

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**Allocation of Trades**

**By the Manager (PGI).** PGI has its own trading platform and personnel that perform trade-related functions. Where applicable, PGI trades on behalf of its own clients. Such transactions are executed in accordance with PGI's trading policies and procedures, including, but not limited to, trade allocations and order aggregation, purchase of new issues, and directed brokerage. PGI acts as discretionary investment advisor for a variety of individual accounts, ERISA accounts, registered investment companies, insurance company separate accounts, and public employee retirement plans and places orders to trade portfolio securities for each of these accounts. Managing multiple accounts may give rise to potential conflicts of interest including, for example, conflicts among investment strategies and conflicts in the allocation of investment opportunities. PGI has adopted and implemented policies and procedures that it believes address the potential conflicts associated with managing accounts for multiple clients and are designed to ensure that all clients are treated fairly and equitably. These procedures include allocation policies and procedures and internal review processes.

If, in carrying out the investment objectives of its respective clients, occasions arise in which PGI deems it advisable to purchase or sell the same equity securities for two or more client accounts at the same or approximately the same time, PGI may submit the orders to purchase or sell to a broker/dealer for execution on an aggregate or "bunched" basis. PGI will not aggregate orders unless it believes that aggregation is consistent with (1) its duty to seek best execution and (2) the terms of its investment advisory agreements. In distributing the securities purchased or the proceeds of sale to the client accounts participating in a bunched trade, no advisory account will be favored over any other account and each account that participates in an aggregated order will participate at the average share price for all transactions of PGI relating to that aggregated order on a given business day, with all transaction costs relating to that aggregated order shared on a pro rata basis.

Because of PGI's role as investment advisor to each of the Funds and discretionary advisor to funds of funds and some underlying funds, conflicts may arise in connection with the services PGI provides to funds of funds with respect to asset class and target weights for each asset class and investments made in underlying funds. PGI also provides advisory services to funds that have multiple investment advisors ("Multi-Managed Funds"). These services include determining the portion of a Multi-Managed Fund's portfolio to be allocated to an advisor. Conflicts may arise in connection with the services PGI provides to the funds of funds that it manages, in connection with the services PGI provides to other funds of funds and Multi-Managed Funds, for the following reasons:

• PGI serves as the investment advisor to the underlying funds in which the funds of funds invest, sometimes as the discretionary advisor, and an affiliated investment advisor may serve as sub-advisor to the funds in which a fund of funds may invest. This raises a potential conflict because PGI's or an affiliated company's profit margin may vary depending upon the underlying fund in which the funds of funds invest.

• PGI or an affiliated person may serve as investment advisor to a portion of a Multi-Managed Fund. In addition, PGI might recommend that an affiliated person serve as sub-advisor to a portion of a Multi-Managed Fund. This raises a potential conflict because PGI's or an affiliated investment advisor's profit margin may vary depending on the extent to which a Multi-Managed Fund's assets are managed by PGI or allocated to an affiliated advisor.

• A sub-advisor may determine that the asset class PFI has hired it to manage (for example, small capitalization growth stocks) can be managed effectively only by limiting the amount of money devoted to the purchase of securities in the asset class. In such a case, a sub-advisor may impose a limit on the amount of money PFI may place with the sub-advisor for management. When a sub-advisor for two or more PFI Funds imposes such a limit, PGI and/or the sub-advisor may need to determine which Fund will be required to limit its investment in the asset class and the degree to which the Fund will be so limited. PGI and the sub-advisor may face a conflict of interest in making its determination.

PGI implements the following in an effort to limit the appearance of conflicts of interest and the opportunity for events that could trigger an actual conflict of interest:

• PGI implements a process for selecting underlying funds that emphasizes the selection of funds within the Principal Funds Complex that are determined to be consistent with the fund of fund's objective and principal

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investment strategies. However, PGI will select an unaffiliated underlying fund managed by an unaffiliated sub-advisor when deemed necessary or appropriate based upon a consideration of the Fund's objective and investment strategies and available expertise and resources within the Principal organization.

• PGI uses a process to select investment advisors that emphasizes the selection of PGI or Principal-affiliated sub-advisors that are determined to be qualified under PGI's due diligence process. However, PGI will select an unaffiliated sub-advisor to manage all or a portion of a Fund's portfolio when deemed necessary or appropriate based upon a consideration of the Fund's objective and investment strategies and available expertise and resources within the Principal organization.

• PGI provides ongoing oversight of the Funds' investments to monitor adherence to their investment program.

**By the Sub-Advisors.** The portfolio managers of each sub-advisor manage a number of accounts other than the Funds' portfolios, including in some instances proprietary or personal accounts. Managing multiple accounts may give rise to potential conflicts of interest, including, for example, conflicts among investment strategies, allocating time and attention to account management, allocation of investment opportunities, knowledge of and timing of fund trades, selection of brokers and dealers, and compensation for the account. Each has adopted and implemented policies and procedures that it believes address the potential conflicts associated with managing accounts for multiple clients and personal accounts and are designed to ensure that all clients and client accounts are treated fairly and equitably. These procedures include allocation policies and procedures, personal trading policies and procedures, internal review processes, and, in some cases, review by independent third parties.

Investments the sub-advisor deems appropriate for a Fund's portfolio may also be deemed appropriate by it for other accounts. Therefore, the same security may be purchased or sold at or about the same time for both the Fund's portfolio and other accounts. In such circumstances, the sub-advisor may determine that orders for the purchase or sale of the same security for the Fund's portfolio and one or more other accounts should be combined. In this event, the transactions will be priced and allocated in a manner deemed by the sub-advisor to be equitable and in the best interests of the Fund's portfolio and such other accounts. While in some instances combined orders could adversely affect the price or volume of a security, the Fund believes that its participation in such transactions on balance will produce better overall results for the Fund.

**PURCHASE AND REDEMPTION OF SHARES**

**Purchase of Shares**

Participating insurance companies and certain other designated organizations are authorized to receive purchase orders on the Funds' behalf, and those organizations are authorized to designate their agents and affiliates as intermediaries to receive purchase orders. Purchase orders are deemed received by a Fund when authorized organizations, their agents, or affiliates receive the order. The Funds are not responsible for the failure of any designated organization or its agents or affiliates to carry out its obligations to its customers. Class A shares of the Funds are purchased at their public offering price, and other share classes of the Funds are purchased at the net asset value ("NAV") per share, as determined at the close of the regular trading session of the NYSE next occurring after a purchase order is received and accepted by an authorized agent of a Fund. In order to receive a day's price, an order must be received in good order by the close of the regular trading session of the NYSE as described below in "Pricing of Fund Shares."

All income dividends and capital gains distributions, if any, on a Fund's Institutional Class and Classes R-3, R-5, and R-6 shares are reinvested automatically in additional shares of the same class of the same Fund. Dividends and capital gains distributions, if any, on a Fund's Classes A, C, and J shares are reinvested automatically in additional shares of the same Class of shares of the same Fund unless the shareholder elects to take dividends in cash. The reinvestment will be made at the NAV determined on the first business day following the record date.

The Fund, at its discretion, may permit the purchase of shares using securities as consideration (a purchase in-kind).

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<u>Finisterre Emerging Markets Total Return Bond Fund</u>

For retail investors (i.e. non-employer sponsored retirement plan investors), effective as of the close of the New York Stock Exchange on April 13, 2026, and for employer-sponsored retirement plan investors, effective as of the close of the New York Stock Exchange on June 12, 2026, the Finisterre Emerging Markets Total Return Bond Fund will no longer be available for purchases from new investors except in limited circumstances.

• Shareholders, including those in omnibus accounts, who own shares of the Finisterre Emerging Markets Total Return Bond Fund as of April 13, 2026 (for retail investors, i.e., non-employer sponsored retirement plan investors) or June 12, 2026 (for employer sponsored retirement plan investors), may continue to make purchases, exchanges, and dividend or capital gains reinvestment in existing accounts.

• Registered Investment Advisor ("RIA") and bank trust firms that have an investment allocation to the Emerging Market Debt Total Return Strategy (i.e., investments in the same strategy used in collective investment trust, insurance separate accounts, or separately managed accounts) in a fee-based, wrap, or advisory account, may add new clients, or purchase shares in the Finisterre Emerging Markets Total Return Bond Fund. The Finisterre Emerging Markets Total Return Bond Fund will not be available to new RIA and bank trust firms.

• Shareholders through accounts at private banks may continue to purchase shares and exchange into the Finisterre Emerging Markets Total Return Bond Fund. Private banks that have an investment allocation to the Emerging Market Debt Total Return Strategy (i.e., investments in the same strategy used in collective investment trust, insurance separate accounts, or separately managed accounts) may add new clients to the Finisterre Emerging Markets Total Return Bond Fund. The Finisterre Emerging Markets Total Return Bond Fund will not be available to private bank or private bank platforms not already investing in the Emerging Market Debt Total Return Strategy.

• Shareholders in broker/dealer wrap or fee-based programs that have an investment allocation to the Finisterre Emerging Markets Total Return Bond Fund may continue to purchase shares and exchange into the Finisterre Emerging Markets Total Return Bond Fund. Existing broker/dealer wrap or fee-based programs may add new participants.

• Shareholders in certain types of retirement plans (including 401(k)s, SEPs, SIMPLEs, 403(b)s, etc.) may continue to purchase shares and exchange into the Finisterre Emerging Markets Total Return Bond Fund. New participants in these plans may elect to purchase shares of the Finisterre Emerging Markets Total Return Bond Fund.

• Retirement plans that, as of April 13, 2026, have the Finisterre Emerging Markets Total Return Bond Fund in their plan lineup may continue to offer the Finisterre Emerging Markets Total Return Bond Fund. Retirement plans in transition as of April 13, 2026 will have until June 12, 2026 to fund any new accounts in the Finisterre Emerging Markets Total Return Bond Fund.

• Investors who open a new IRA transfer or rollover account by the close of business on April 13, 2026 will have until June 12, 2026 to fund these accounts.

• Shareholders within brokerage accounts may continue to purchase shares of the Finisterre Emerging Markets Total Return Bond Fund; however, new brokerage accounts will not be permitted to begin investing in the Finisterre Emerging Markets Total Return Bond Fund after April 13, 2026.

• 529 plans that include the Finisterre Emerging Markets Total Return Bond Fund within their investment options may continue to purchase shares and exchange into the Finisterre Emerging Markets Total Return Bond Fund.

• Investors who have a direct investment in an Emerging Market Debt Total Return Strategy (i.e., investments in the same strategy used in collective investment trust, insurance separate accounts, or separately managed accounts) may, subject to the approval of the Distributor, purchase shares in the Finisterre Emerging Markets Total Return Bond Fund.

At the sole discretion of the Distributor, the Finisterre Emerging Markets Total Return Bond Fund may permit certain types of investors to open new accounts, impose further restrictions on purchases, or reject any purchase orders, all without prior notice.

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<u>MidCap Fund</u>

For retail investors (i.e., non-employer sponsored retirement plan investors), effective as of the close of the NYSE on June 14, 2013, and for employer-sponsored retirement plan investors, effective as of the close of the NYSE on August 15, 2013, the MidCap Fund (the "Fund") is no longer available for purchases from new investors except in limited circumstances, such as the following:

• Shareholders, including those in omnibus accounts, who own shares of the Fund as of June 14, 2013 (for retail investors, i.e., non-employer sponsored retirement plan investors) or August 15, 2013 (for employer-sponsored retirement plan investors), may continue to make purchases, exchanges, and dividend or capital gains reinvestment in existing accounts.

• Registered Investment Advisor (RIA) and bank trust firms that have an investment allocation to the MidCap Strategy (i.e., investments in the same strategy used in collective investment trust, separately managed accounts, individually managed accounts, or insurance separate accounts) in a fee-based, wrap, or advisory account, may continue to add new clients, purchase shares, and exchange into the Fund. The Fund will not be available to new RIA and bank trust firms.

• Shareholders through accounts at private banks may continue to purchase shares and exchange into the Fund. Private banks that have an investment allocation to the MidCap Strategy may add new clients to the Fund. The Fund will not be available to private bank or private bank platforms not already investing in the MidCap Strategy.

• Shareholders in broker/dealer wrap or fee-based programs that have an investment allocation to the Fund may continue to purchase shares and exchange into the Fund. Existing broker/dealer wrap or fee-based programs may add new participants.

• Shareholders in certain types of retirement plans (including 401(k)s, SEPs, SIMPLEs, 403(b)s, etc.) may continue to purchase shares and exchange into the Fund. New participants in these plans may elect to purchase shares of the Fund.

• Shareholders within brokerage accounts may continue to purchase shares of the Fund; however, new brokerage accounts will not be permitted to begin investing in the Fund after June 14, 2013.

• 529 plans that include the Fund within their investment options may continue to purchase shares and exchange into the Fund.

• Investors who have a direct investment in the MidCap Strategy may, subject to the approval of the Distributor, purchase shares in the Fund.

• Shareholders that invest through accounts with Principal Securities, Inc.

At the sole discretion of the Distributor, the Fund may permit certain types of investors to open new accounts, impose further restrictions on purchases, or reject any purchase orders, all without prior notice.

<u>Money Market Fund</u>

Effective as of the close of the NYSE January 18, 2018, Class C and Institutional Class Shares of the Fund are no longer available for purchases or for exchanges from other series of the Principal Funds, Inc.

<u>Abandoned or Orphaned Accounts</u>

In order to invest in shares of Principal Funds, a shareholder's account must have a registered broker-dealer on file with us when the account is established. If an active account does not have a registered broker-dealer on file, we consider the account to be an "abandoned or orphaned account". If we determine in our discretion that an account is abandoned or orphaned, we will take the following actions:

• Notify the shareholder in writing as to the account's status and request that the account(s) be moved to another registered broker-dealer;

• Remove the broker/dealer from the account. If the shareholder does not request another registered broker/dealer to be added to the account, Principal Shareholder Services, Inc. ("PSS"), the Funds' Transfer Agent, will hold the accounts until another registered broker/dealer is added to the account. PSS is not a broker-dealer and does not offer investment advice; and

• No initial sales charge will apply to purchases of Fund shares while PSS is holding the account.

**Sales of Shares**

Payment for shares tendered for redemption is ordinarily made in cash. The Fund may determine, however, that it would be detrimental to the remaining shareholders to make payment of a redemption order wholly or partly in cash. The Fund may, therefore, pay the redemption proceeds in whole or in part by a distribution "in kind" of securities from the Fund's portfolio in lieu of cash. If the Fund pays the redemption proceeds in kind, the redeeming shareholder

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might incur brokerage or other costs in selling the securities for cash. The Fund will value securities used to pay redemptions in kind using the same method the Fund uses to value its portfolio securities as described below in "Pricing of Fund Shares."

The right to require the Funds to redeem their shares may be suspended, or the date of payment may be postponed, whenever: 1) trading on the NYSE is restricted, as determined by the SEC, or the NYSE is closed except for holidays and weekends; 2) the SEC permits such suspension and so orders; or 3) an emergency exists as determined by the SEC so that disposal of securities or determination of NAV is not reasonably practicable.

Certain designated organizations are authorized to receive sell orders on the Fund's behalf and those organizations are authorized to designate their agents and affiliates as intermediaries to receive redemption orders. Redemption orders are deemed received by the Fund when authorized organizations, their agents, or affiliates receive the order. The Fund is not responsible for the failure of any designated organization or its agents or affiliates to carry out its obligations to its customers.

**Exchanges Between Classes of Shares**

Through your financial intermediary, in certain limited circumstances, you may become eligible to exchange shares of a Fund you own for shares of a different class of the same Fund, if you become eligible to purchase shares of such different class of the same Fund through your account with your financial intermediary. The following shows the permitted exchanges, subject to the conditions described herein:

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| | |
|:---|:---|
| **<u>Exchange From Class</u>** | **<u>Exchange To Class</u>** |
| A | Institutional |
| C | A, Institutional |
| Institutional | A, C, R-6 |
| R-6 | Institutional |

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Such same-Fund exchanges between share classes are permitted, subject to conditions including, but not limited to, the following:

• You or your retirement plan sponsor must be eligible to purchase shares of the class into which the exchange is to occur;

• Your financial intermediary or the retirement plan sponsor's financial intermediary must have an agreement with the underwriter or transfer agent of Principal Funds allowing the purchase of such share class for you;

• The Fund must offer shares of such class of such Fund in your state or the state of the retirement plan sponsor;

• In order to exchange into Class A shares, you must be eligible to: (i) purchase Class A shares with no initial sales charge; or (ii) exchange into Class A shares through your financial intermediary with no initial sales charge;

• Depending on the circumstances, for exchanges from Classes A and C, shares there may be a contingent deferred sales charge in connection with the exchange;

• Any such exchange must be requested by your financial intermediary or retirement plan sponsor (with approval by the Distributor) and, except as otherwise approved by the Distributor, must result from either (i) the financial intermediary seeking to have shares of the Funds on their platform held in a particular share class, (ii) the share class becoming available to your financial intermediary or Financial Professional through a new relationship, or (iii) your retirement plan sponsor electing to have shares of the Funds offered as part of the plan investment options held in a particular share class; and

• The Government Money Market Fund does not permit exchanges.

If, after purchasing Institutional Class shares, you become ineligible to invest in Institutional Class shares, you may be permitted to exchange from Institutional Class shares into other share classes issued by the same Fund if your financial intermediary determines you qualify for such an exchange.

You should check with your financial intermediary to see if the exchange you wish to complete will satisfy the conditions. Your ability to exchange between share classes of the same Fund may be limited by the operational limitations of your financial intermediary. Please consult your Financial Professional for more information.

While such an exchange may not be considered a taxable event for income tax purposes, you should consult with your tax advisor regarding possible federal, state, local, and foreign tax consequences.

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**Money Market Fund - Investor Transaction Considerations Regarding Liquidity Fees\***

• If the Money Market Fund received, but has not yet processed, a purchase order prior to notifying investors of the imposition of liquidity fees, such purchase order will be considered a valid purchase and will be processed normally.

• If a liquidity fee is in place and a shareholder submits both a purchase order and a redemption order for shares of the Money Market Fund on the same day, the liquidity fee will be assessed on the shareholder's gross redemption amount and will not be assessed on the shareholder's net redemption amount.

• If a redemption request was verifiably submitted to the Money Market Fund's agent before a liquidity fee is imposed but is received by the Money Market Fund after a liquidity fee is imposed, the Fund will pay the proceeds of the redemption request and will not impose a liquidity fee on the redemption request.

• A checkwriting redemption request that is verifiably submitted to the Money Market Fund's agent before a liquidity fee is imposed will be considered a valid redemption and will be processed normally.

\* &nbsp;&nbsp;&nbsp;&nbsp;This does not apply to the Government Money Market Fund.

**GOVERNMENT MONEY MARKET AND MONEY MARKET FUNDS MATERIAL EVENTS**

<u>Imposition of Liquidity Fees</u>

During the last ten years, there has not been any occasion on which the Money Market Fund has instituted a liquidity fee.

<u>Form N-CR</u>

If applicable, the Fund was required to disclose (through June 10, 2024) additional information about this liquidity fee event (or these events, as appropriate) on Form N-CR and to file this form with the SEC. Any Form N-CR filing submitted by the Fund is available on the EDGAR Database on the SEC's Internet site at www.sec.gov.

<u>Financial Support Provided to the Government Money Market Fund or Money Market Fund</u>

During the last ten years, there has not been any occasion on which the Government Money Market Fund or Money Market Fund has: (i) been provided financial support from an affiliated person, promoter, or principal underwriter of the Fund, or an affiliated person of such a person, and/or (ii) participated in one or more mergers with another investment company.

**PRICING OF FUND SHARES**

Each Fund's shares are bought and sold at the current net asset value ("NAV") per share. The NAV for each class of each Fund (other than the Government Money Market Fund) is calculated each day the New York Stock Exchange ("NYSE") is open, as of the close of business of the NYSE (normally 3:00 p.m. Central Time). The NAV for each class of the Government Money Market Fund is calculated each day the New York Stock Exchange ("NYSE") is open, normally at 4:00 p.m. Central Time. The NAV of Fund shares is not determined on days the NYSE is closed (generally, New Year's Day; Martin Luther King, Jr. Day; Washington's Birthday/Presidents' Day; Good Friday; Memorial Day; Juneteenth, Independence Day; Labor Day; Thanksgiving Day; and Christmas). When an order to buy or sell shares is received, the share price used to fill the order is the next price calculated after the order is received in proper form.

The Funds will not treat an intraday unscheduled disruption in NYSE trading as a closure of the NYSE and will price shares as of 3:00 p.m. Central Time or, in the case of the Government Money Market Fund, 4:00 p.m. Central Time, if the particular disruption directly affects only the NYSE.

For all Funds except the Government Money Market and Money Market Funds, the share price is calculated by:

• taking the current market value of the total assets of the Fund,

• subtracting liabilities of the Fund,

• dividing the remainder proportionately into the classes of the Fund,

• subtracting the liability of each class, and

• dividing the remainder by the total number of shares owned in that class.

In determining NAV, securities listed on an Exchange, the Nasdaq National Market, and any foreign markets within the Western Hemisphere are valued at the closing prices on such markets, or if such price is lacking for the trading period immediately preceding the time of determination, such securities are valued at their current bid price.

Municipal securities held by the Funds are traded primarily in the over-the-counter market. Valuations of such securities are furnished by one or more pricing services employed by the Funds and are based upon appraisals

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obtained by a pricing service, in reliance upon information concerning market transactions and quotations from recognized municipal securities dealers.

Other securities that are traded on the over-the-counter market are valued at their closing bid prices. Each Fund will determine the market value of individual securities held by it, by using prices provided by one or more professional pricing services that may provide market prices to other funds, or, as needed, by obtaining market quotations from independent broker-dealers. Debt securities with remaining maturities of sixty days or less for which market quotations and information furnished by a third-party pricing service are not readily available will be valued at amortized cost, which approximates current value. Securities for which quotations are not readily available, and other assets, are valued at fair value determined in good faith under procedures established by and under the supervision of the Board.

A Fund's securities may be traded on foreign securities markets that close each day prior to the time the NYSE closes. In addition, foreign securities trading generally or in a particular country or countries may not take place on all business days in New York. The Fund has adopted policies and procedures to "fair value" some or all securities held by a Fund. These fair valuation procedures are intended to discourage shareholders from investing in the Fund for the purpose of engaging in market timing or arbitrage transactions. The values of foreign securities used in computing share price are determined at the time the foreign market closes. Foreign securities and currencies are converted to U.S. dollars using the exchange rate in effect at the close of the NYSE. Occasionally, events affecting the value of foreign securities occur when the foreign market is closed and the NYSE is open. The NAV of a Fund investing in foreign securities may change on days when shareholders are unable to purchase or redeem shares. If the Manager believes that the market value is materially affected, the share price will be calculated using the policy adopted by the Fund.

Certain securities issued by companies in emerging markets may have more than one quoted valuation at any point in time, sometimes referred to as a "local" price and a "premium" price. The premium price is often a negotiated price that may not consistently represent a price at which a specific transaction can be effected. It is the policy of the Funds to value such securities at prices at which it is expected those shares may be sold, and PGI is authorized to make such determinations subject to the oversight of the Board as may from time to time be necessary.

Appendix B provides a specimen price-make-up sheet showing how the Fund calculates the total offering price per share.

<u>Government Money Market and Money Market Funds (the "Money Market Funds")</u>

The share price of each class of shares of the Money Market Fund is determined at the same time and on the same days as the Funds described above. The share price of each class of shares of the Government Money Market Fund is determined normally at 4:00 p.m. Central Time and on the same days as the Funds described above. All securities held by the Money Market Funds are valued on an amortized cost basis. Under this method of valuation, a security is initially valued at cost; thereafter, the Money Market Funds assume a constant proportionate amortization in value until maturity of any discount or premium, regardless of the impact of fluctuating interest rates on the market value of the security. While this method provides certainty in valuation, it may result in periods during which value, as determined by amortized cost, is higher or lower than the price that would be received upon sale of the security.

Use of the amortized cost valuation method by the Money Market Funds requires the Funds to maintain a dollar weighted average maturity of 60 days or less and to purchase only obligations that have remaining maturities of 397 days or less, with certain exceptions permitted by applicable regulations, or have a variable or floating rate of interest. In addition, the Funds invest only in obligations determined by the Board to be of high quality with minimal credit risks.

The Board has established procedures for the Money Market Funds designed to stabilize, to the extent reasonably possible, the Funds' price per share as computed for the purpose of sales and redemptions at $1.00. Such procedures include a directive to PGI to test price the portfolio or specific securities on a weekly basis using a mark-to-market method of valuation to determine possible deviations in the net asset value from $1.00 per share. If such deviation exceeds ½ of 1%, the Board promptly considers what action, if any, will be initiated. In the event the Board determines that a deviation exists that may result in material dilution or other unfair results to shareholders, it takes such corrective action as it regards as appropriate, including: sale of portfolio instruments prior to maturity; the withholding of dividends; redemptions of shares in kind; the establishment of a net asset value per share based upon available market quotations; or splitting, combining, or otherwise recapitalizing outstanding shares. The Funds may also reduce the number of shares outstanding by redeeming proportionately from shareholders, without the payment of any monetary compensation, such number of full and fractional shares as is necessary to maintain the net asset value at $1.00 per share.

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**TAX CONSIDERATIONS**

**Qualification as a Regulated Investment Company**

Each Fund intends to qualify annually to be treated as a regulated investment company ("RIC") under the Internal Revenue Code of 1986, as amended (the "IRC"), by satisfying certain requirements prescribed by Subchapter M of the IRC. To qualify as a RIC, a Fund must invest in assets that produce types of income specified in the IRC ("Qualifying Income"). Whether the income from derivatives, swaps, commodity-linked derivatives, and other commodity/natural resource-related securities is Qualifying Income is unclear under current law. Accordingly, a Fund's ability to invest in certain derivatives, swaps, commodity-linked derivatives, and other commodity/natural resource-related securities may be restricted. Further, if a Fund does invest in these types of securities and the income is not determined to be Qualifying Income, it may cause the Fund to fail to qualify as a RIC under the IRC for a given year. In addition, a Fund must satisfy certain diversification tests under the IRC to qualify as a RIC. If a Fund fails to qualify as a RIC, it will be liable for taxes, significantly reducing its distributions to shareholders and eliminating shareholders' ability to treat distributions (as long- or short-term capital gains or qualifying dividends) of the Fund in the manner they were received by the Fund.

**Futures Contracts and Options**

As previously discussed, some of the Funds invest in futures contracts or options thereon, index options, or options traded on qualified exchanges. For federal income tax purposes, capital gains and losses on futures contracts or options thereon, index options, or options traded on qualified exchanges are generally treated as 60% long-term and 40% short-term. In addition, the Funds must recognize any unrealized gains and losses on such positions held at the end of the fiscal year. A Fund may elect out of such tax treatment, however, for a futures or options position that is part of an "identified mixed straddle" such as a put option purchased with respect to a portfolio security. Gains and losses on futures and options included in an identified mixed straddle are considered 100% short-term, and unrealized gains or losses on such positions are not realized at year-end. The straddle provisions of the IRC may require the deferral of realized losses to the extent that a Fund has unrealized gains in certain offsetting positions at the end of the fiscal year. The IRC may also require recharacterization of all or a part of losses on certain offsetting positions from short-term to long-term, as well as adjustment of the holding periods of straddle positions.

**International Funds**

Some foreign securities purchased by the Funds may be subject to foreign withholding taxes that could reduce the yield on such securities. The amount of such foreign taxes is expected to be insignificant. Shareholders of the Funds that invest in foreign securities may be entitled to claim a credit or deduction with respect to foreign taxes. The Funds may from year to year make an election to pass through such taxes to shareholders. If such election is not made, any foreign taxes paid or accrued will represent an expense to each affected Fund that will reduce its investment company taxable income. Certain Funds may purchase securities of certain foreign corporations considered to be passive foreign investment companies by the IRS. In order to avoid taxes and interest that must be paid by the Funds if these instruments appreciate in value, the Funds may make various elections permitted by the tax laws. However, these elections could require that the Funds recognize additional taxable income, which in turn must be distributed. In addition, the Fund's investments in foreign securities or foreign currencies may increase or accelerate the Fund's recognition of ordinary income and may affect the timing or amount of the Fund's distributions.

Under the Foreign Account Tax Compliance Act ("FATCA"), a Fund may be required to withhold a 30% tax on (a) dividends paid by the Fund, and (b) certain capital gain distributions and/or the proceeds arising from the sale of Fund shares paid by the Fund after December 31, 2018, to certain foreign entities, referred to as foreign financial institutions or non-financial foreign entities, that fail to comply (or be deemed compliant) with extensive new reporting and withholding requirements designed to inform the U.S. Department of the Treasury of U.S.-owned foreign investment accounts. The IRS recently issued proposed regulations indicating its intent to eliminate the 30% withholding tax on gross proceeds. A Fund may disclose the information that it receives from its shareholders to the IRS, non-U.S. taxing authorities or other parties as necessary to comply with FATCA. Withholding also may be required if a foreign entity that is a shareholder of a Fund fails to provide the Fund with appropriate certifications or other documentation concerning its status under FATCA.

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**Special Tax Considerations for the California Municipal and Tax-Exempt Bond Funds (collectively the "Municipal Funds" or singly the "Fund")**

The Municipal Funds also intend to qualify to pay "exempt-interest dividends" to its shareholders. An exempt-interest dividend is that part of dividend distributions made by the Fund that consist of interest received by that Fund on tax-exempt municipal obligations. Shareholders incur no federal income taxes on exempt-interest dividends. However, these exempt-interest dividends may be taxable under state or local law. Exempt-interest dividends that derive from certain private activity bonds must be included by individuals as a preference item in determining whether they are subject to the alternative minimum tax. The Fund may also pay ordinary income dividends and distribute capital gains from time to time. Ordinary income dividends and distributions of capital gains, if any, are taxable for federal purposes.

If a shareholder receives an exempt-interest dividend with respect to shares of the Fund held for six months or less, then any loss on the sale or exchange of such shares, to the extent of the amount of such dividend, is disallowed. If a shareholder receives a capital gain dividend with respect to shares held for six months or less, then any loss on the sale or exchange of such shares is treated as a long-term capital loss to the extent the loss exceeds any exempt-interest dividend received with respect to such shares, and is disallowed to the extent of such exempt-interest dividend.

Interest on indebtedness incurred or continued by a shareholder to purchase or carry shares of this Fund is not deductible. Furthermore, entities or persons who are "substantial users" (or related persons) under Section 147(a) of the IRC of facilities financed by private activity bonds should consult their tax advisors before purchasing shares of the Fund.

From time to time, proposals have been introduced before Congress for the purpose of restricting or eliminating the federal income tax exemption for interest on municipal obligations. If legislation is enacted that eliminates or significantly reduces the availability of municipal obligations, it could adversely affect the ability of the Fund to continue to pursue its investment objective and policies. In such event, the Fund would reevaluate its investment objective and policies.

**PORTFOLIO HOLDINGS DISCLOSURE**

The portfolio holdings of any Fund that is a fund of funds are shares of underlying mutual funds; holdings of any fund of funds may be made available upon request. In addition, the Funds may publish month-end portfolio holdings information for each Fund's portfolio on the www.PrincipalAM.com website on the thirteenth business day of the following month. The Funds may also occasionally publish information on the website relating to specific events, such as the impact of a natural disaster, corporate debt default, or similar events on portfolio holdings. The Funds may also occasionally publish information on the website concerning the removal, addition, or change in weightings of underlying funds in which the funds of funds invest. The Government Money Market and Money Market Funds also publish on the website www.principal.com, within five business days after the end of each month, certain information required to be made publicly available by SEC rule. PGI serves as the investment advisor to the Principal Funds, which includes the Principal Exchange-Traded Funds. The Funds may have investment strategies and/or portfolio holdings that are substantially similar to or overlap with an exchange-traded fund ("ETFs") managed by PGI. These ETFs may publicly disclose portfolio holdings on a more frequent basis than is required for the Funds. For example, the portfolio holding for the ETFs managed by PGI are required to be publicly disclosed daily. Similarly, PGI serves as an investment adviser to separate accounts that may have investment objectives, strategies, and portfolio holdings that may be substantially similar to or overlap with the Funds. Those separate account holdings could be disclosed to clients or others under terms of an investment management agreement and could be disclosed more frequently than the Funds' portfolio holdings are publicly disclosed. It is the Funds' policy to disclose only public information regarding portfolio holdings (i.e., information published on the websites or filed with the SEC), except as described below.

**Non-Specific Information.** Under the Portfolio Holdings Disclosure Policy, the Funds may distribute non-specific information about the Funds and/or summary information about the Funds as requested. Such information will not identify any specific portfolio holding, but may reflect, among other things, the quality, character, or sector distribution of a Fund's holdings. This information may be made available at any time (or without delay).

**Policy.** The Funds and PGI have adopted a policy of disclosing non-public portfolio holdings information to third parties only to the extent required by federal law, and to the following third parties, so long as such third party has agreed, or is legally obligated, to maintain the confidentiality of the information and to refrain from using such information to engage in securities transactions:

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1)Daily to the Funds' portfolio pricing services, Bloomberg LP, ICE Data Services, J.P. Morgan PricingDirect, Inc., and S&P Global, to obtain prices for portfolio securities;

2)Upon proper request to government regulatory agencies or to self-regulatory organizations;

3)As needed to Ernst & Young LLP, the independent registered public accounting firm, in connection with the performance of the services provided by Ernst & Young LLP to the Funds;

4)To the investment advisor and sub-advisors' proxy service providers (Broadridge Financial Solutions, LLC, Glass Lewis & Co., and Institutional Shareholder Services (ISS)) to facilitate voting of proxies;

5)To the Funds' custodian, The Bank of New York Mellon, in connection with the custodial services it provides to the Funds; and

6)Kessler, Topaz, Meltzer & Check, LLP, in connection with legal services it provides to the Funds.

The Funds are also permitted to enter into arrangements to disclose portfolio holdings to other third parties in connection with the performance of a legitimate business purpose if such third party agrees in writing to maintain the confidentiality of the information prior to the information being disclosed. Any such written agreement must be approved by an officer of the Funds, PGI, or the Fund's sub-advisor. Approval must be based on a reasonable belief that disclosure to such other third party is in the best interests of the Fund's shareholders. If a conflict of interest is identified in connection with disclosure to any such third party, the Fund's or PGI's Chief Compliance Officer ("CCO") must approve such disclosure, in writing, before it occurs. The Funds currently have disclosure agreements with the following:

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| | | |
|:---|:---|:---|
| Abel Noser | Eagle | Natixis Investment Managers |
| ACA Compliance Alpha | Eagle Investment Systems Corp. | Nordlogic |
| AcadiaSoft | Electra | Northern Trust |
| Accenture | Electra Information Systems | Northern Trust Integrated Trading Solutions |
| Advent Axys | Everest (Allvue Systems) | Omgeo LLC |
| Advent APX | FactSet | Portfolio BI, Inc. |
| Ashland Partners | FactSet Research Systems Inc. | PORTIA (SS&C Technologies) |
| Askia, LLC | Financial Recovery Technologies (FRT) | Qontigo (Axioma Risk System) |
| Assette | FIS Capital Markets US, LLC | ReFlow Fund, LLC |
| Bank of America | FIS Global Asset Management | Rimes Technologies Corporation |
| Barra | FIS PTA | Russell Investments Implementation |
| BlackRock Aladdin | Generic Network Systems | &nbsp;&nbsp;&nbsp;&nbsp;Services, LLC |
| Bloomberg AIM | Global Trading Analytics | S&P Global Ratings |
| Bloomberg LP | Goldman Sachs | S3 |
| Bloomberg Port | Gresham Technologies | SEI Global Services, Inc. |
| Bloomberg Professional Services | ICE Data Pricing & Reference Data | SEI Investments Co |
| BNY | ICE Liquidity | SS&C |
| Broadridge Business Process Outsourcing | IHS Markit LTD | SS&C Advent |
| &nbsp;&nbsp;&nbsp;&nbsp;Solutions, LLC | INDATA | SS&C Eze |
| Broadridge (Proxy Edge) | InvestCloud Inc | SS&C Geneva |
| Brown Brothers Harriman | Investment Company Institute (ICI) | SS&C Geneva Managed Services |
| Charles River | JP Morgan | SS&C Vision FI |
| Charles River Development | LexisNexis | StarCompliance Operating, LLC |
| Charles River Investment Management Solutions | LiquidNet | State Street Bank & Trust |
| Charles River Trading System | Loomis, Sayles & Company, LP | SWIFT |
| Clearwater Analytics | Markit WSO Services | TriOptima |
| Confluence Technologies | Microsoft Azure | TriOptima AB |
| Consensys Limited | Morgan Stanley | Virtu Americas LLC |
| Corporation Service Company | Morningstar, Inc. | Virtus Shared Services |
| DTCC OASYS | MSCI | Watson Wheatley |
| Dynamo Software | MSCI ESG Risk Metrics |  |

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Any agreement by which any Fund or any party acting on behalf of the Fund agrees to provide Fund portfolio information to a third party, other than a third party identified in the policy described above, must be approved prior to information being provided to the third party, unless the third party (i) is a regulator or (ii) has a duty to maintain the confidentiality of such information and to refrain from using such information to engage in securities transactions, except that a third-party recipient of non-public portfolio holdings information received in connection with certain in-kind redemptions pursuant to contractual arrangements will not be prohibited from hedging or otherwise managing its risk exposure from the expected distribution of portfolio securities to be received in the in-kind redemptions. A written record of approval will be made by the person granting approval.

The Funds' non-public portfolio holdings information policy applies without variation to individual investors, institutional investors, intermediaries that distribute the Funds' shares, third-party service providers, rating and ranking organizations, and affiliated persons of the Funds. Neither the Funds nor PGI nor any other party receives compensation in connection with the disclosure of Fund portfolio information. The Funds' CCO will periodically, but no less frequently than annually, review the Funds' portfolio holdings disclosure policy and recommend changes the CCO believes are appropriate, if any, to the Board. In addition, the Board must approve any change in the Funds' portfolio holdings disclosure policy that would expand the distribution of such information.

**REFLOW LIQUIDITY PROGRAM**

Each Fund may participate in the ReFlow liquidity program, which is designed to provide an alternative liquidity source for mutual funds experiencing net redemptions of their shares. Pursuant to the program, ReFlow Fund, LLC ("ReFlow") provides participating mutual funds with a source of cash to meet net shareholder redemptions by standing ready each business day to purchase Fund shares up to the value of the net shares redeemed by other shareholders that are to settle that business day. A Fund is not guaranteed to receive cash from ReFlow on any given day as allocation of ReFlow's cash is based on the results of ReFlow's automated daily auction process among participating mutual funds. Following purchases of Fund shares, ReFlow then generally redeems those shares when the Fund experiences net shareholder purchases at the end of a maximum holding period determined by ReFlow, or at other times at ReFlow's discretion. While ReFlow holds Fund shares, it will have the same rights and privileges with respect to those shares as any other shareholder.

For use of the ReFlow service, a Fund pays a fee to ReFlow each time it purchases Fund shares, calculated by applying to the purchase amount a fee rate determined through the auction process. The current minimum fee rate (which is subject to change) is 0.14% of the value of the Fund shares purchased by ReFlow, although the Fund may submit a bid at a higher fee rate if it determines that doing so is in the best interest of Fund shareholders. ReFlow's purchases of Fund shares through the liquidity program are made on an investment-blind basis without regard to the Fund's objective, policies, or anticipated performance. In accordance with federal securities laws, ReFlow is prohibited from acquiring more than 3% of the outstanding voting securities of a Fund. ReFlow will periodically redeem its entire share position in a Fund and may request that such redemption be met in-kind in accordance with redemption in-kind policies described in the Prospectus. Purchases and redemptions of Fund shares by ReFlow under the program are generally not considered excessive short-term trading under the Funds' Excessive Trading Policy.

**PROXY VOTING POLICIES AND PROCEDURES**

The Board has delegated responsibility for decisions regarding proxy voting for securities held by each Fund to PGI or to the Fund's sub-advisor, as appropriate. PGI and each sub-advisor will vote such proxies in accordance with its proxy policies and procedures, which have been reviewed by the Board, and which are found in Appendix C to this SAI. Any material changes to the proxy policies and procedures will be submitted to the Board for approval.

Funds that operate as funds of funds invest in shares of other Funds of PFI and PETF. PGI is authorized to vote proxies related to the underlying funds. If an underlying fund holds a shareholder meeting, in order to avoid any potential conflict of interest, PGI will vote shares of such fund on any proposal submitted to the fund's shareholders in the same proportion as the votes of other shareholders of the underlying fund.

For Funds that participate in a securities lending program, the voting rights for securities that are loaned are transferred to the borrower. Therefore, the lender (i.e., a Fund) is not entitled to vote the loaned securities, unless it recalls those securities. Those managing the Fund's investments may recall securities for voting purposes when they reasonably believe the ability to vote such securities outweighs the additional revenue received if such securities were not recalled.

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Information regarding how the Funds voted proxies relating to portfolio securities during the most recent 12-month period ended June 30, 2025, is available, without charge, upon request, by calling 1-800-222-5852, sending an email request to prospectus@principalfunds.com, or by accessing the Funds' most recently filed Form N-PX on the Fund's website at www.PrincipalAM.com/Prospectuses or the SEC website at <u>www.sec.gov</u>.

**FINANCIAL STATEMENTS**

The financial statements of the Funds at October 31, 2025, are incorporated herein by reference to the Funds' most recent Annual Report to Shareholders (<u>[Part 1](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000898745/000089874525000918/primary-document.htm)</u>) (<u>[Part 2](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000898745/000089874525000919/primary-document.htm)</u>) (<u>[Part 3](https://www.sec.gov/ix?doc=/Archives/edgar/data/0000898745/000089874525000920/primary-document.htm)</u>) as filed with the SEC on Form N-CSR in three related submissions due to size/image constraints.

**INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM**

Ernst & Young LLP, 700 Nicollet Mall, Suite 500, Minneapolis, MN 55402, is the independent registered public accounting firm for the Principal Funds.

**GENERAL INFORMATION**

<u>Midcap S&P 400 Index Fund, LargeCap S&P 500 Index Fund, and SmallCap S&P 600 Index Fund</u>

The Funds are not sponsored, endorsed, sold, or promoted by S&P Global ("S&P Global"). S&P Global makes no representation or warranty, express or implied, to Fund shareholders or any member of the public regarding the advisability of investing in securities generally or in these Funds particularly or the ability of the S&P 500 Index, S&P MidCap 400 Index, or S&P SmallCap 600 Index to track general stock market performance. S&P Global's only relationship to Principal Life Insurance Company and PGI is the licensing of certain trademarks and trade names of S&P Global and the S&P 500 Index, S&P MidCap 400 Index, or S&P SmallCap 600 Index which are determined, composed, and calculated by S&P Global without regard to Principal Life Insurance Company, PGI, or the Funds. S&P Global has no obligation to take the needs of Principal Life Insurance Company, PGI or Fund shareholders into consideration in determining, composing or calculating the S&P 500 Index, S&P MidCap 400 Index, or S&P SmallCap 600 Index. S&P Global is not responsible for and has not participated in the determination of the prices of the Funds or the timing of the issuance or sale of the Funds or in the determination or calculation of the equation by which the Funds are to be converted into cash. S&P Global has no obligation or liability in connection with the administration, marketing, or trading of the Funds.

S&P GLOBAL DOES NOT GUARANTEE THE ACCURACY AND/OR THE COMPLETENESS OF THE S&P 500 INDEX, THE S&P MIDCAP 400 INDEX, OR THE S&P SMALLCAP 600 INDEX OR ANY DATA CONTAINED THEREIN AND S&P GLOBAL SHALL HAVE NO LIABILITY FOR ANY ERRORS, OMISSIONS, OR INTERRUPTIONS THEREIN. S&P GLOBAL MAKES NO WARRANTY, EXPRESS OR IMPLIED, AS TO RESULTS TO BE OBTAINED BY PRINCIPAL LIFE INSURANCE COMPANY, PRINCIPAL, FUND SHAREHOLDERS, OR ANY OTHER PERSON OR ENTITY FROM THE USE OF THE S&P 500 INDEX, THE S&P MIDCAP 400 INDEX, OR THE S&P SMALLCAP 600 INDEX OR ANY DATA INCLUDED THEREIN. S&P GLOBAL MAKES NO EXPRESS OR IMPLIED WARRANTIES, AND EXPRESSLY DISCLAIMS ALL WARRANTIES OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE OR USE WITH RESPECT TO THE S&P 500 INDEX, THE S&P MIDCAP 400 INDEX, OR THE S&P SMALLCAP 600 INDEX OR ANY DATA INCLUDED THEREIN. WITHOUT LIMITING ANY OF THE FOREGOING, IN NO EVENT SHALL S&P GLOBAL HAVE ANY LIABILITY FOR ANY SPECIAL, PUNITIVE, INDIRECT, OR CONSEQUENTIAL DAMAGES (INCLUDING LOST PROFITS), EVEN IF NOTIFIED OF THE POSSIBILITY OF SUCH DAMAGES.

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**CONTROL PERSONS AND PRINCIPAL HOLDERS OF SECURITIES**

The following list identifies shareholders who own more than 25% of the voting securities of a Fund as of January 30, 2026. It is presumed that a person who owns more than 25% of the voting securities of a Fund controls the Fund. A control person could control the outcome of proposals presented to shareholders for approval. The information is listed in alphabetical order by Fund.

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| | | | | |
|:---|:---|:---|:---|:---|
| **Fund** | **<br>Percent<br>of<br>Ownership** | **Shareholder Name and Address** | **Jurisdiction Under Which Control Person <br>is Organized <br>(when control person <br>is a company)** | **Parent of Control<br>Person (when control<br>person is a company)** |
| CALIFORNIA MUNICIPAL | 33.38% | WELLS FARGO CLEARING SERVICES LLC | CALIFORNIA | WELLS FARGO & |
|  |  | SPECIAL CUSTODY ACCT FOR THE |  | COMPANY |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |  |  |
|  |  | 2801 MARKET ST |  |  |
|  |  | SAINT LOUIS MO 63103-2523 |  |  |
| CORE PLUS BOND | 49.28% | NATIONAL FINANCIAL SERVICES LLC | DELAWARE | FIDELITY GLOBAL |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |  | BROKERAGE GROUP, |
|  |  | 499 WASHINGTON BLVD |  | INC. a wholly owned |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |  | subsidiary of FMR, LLC |
|  |  | JERSEY CITY NJ 07310-1995 |  |  |
| DIVERSIFIED | 26.11% | NATIONAL FINANCIAL SERVICES LLC | DELAWARE | FIDELITY GLOBAL |
| INTERNATIONAL FUND |  | FOR THE EXCL BENE OF OUR CUSTOMERS |  | BROKERAGE GROUP, |
|  |  | 499 WASHINGTON BLVD |  | INC. a wholly owned |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |  | subsidiary of FMR, LLC |
|  |  | JERSEY CITY NJ 07310-1995 |  |  |
| GLOBAL EMERGING | 53.99% | PRINCIPAL GLOBAL INVESTORS TRUST CO | DELAWARE | PRINCIPAL HOLDING |
| MARKETS |  | PRINCIPAL LIFETIME HYBRID |  | COMPANY, LLC <sup>(1)</sup> |
|  |  | COLLECTIVE INVESTMENT FUNDS |  |  |
|  |  | 1300 SW 5TH AVE STE 3300 |  |  |
|  |  | PORTLAND OR 97201-5640 |  |  |
| HIGH YIELD | 36.03% | PRINCIPAL GLOBAL INVESTORS TRUST CO | DELAWARE | PRINCIPAL HOLDING |
|  |  | PRINCIPAL LIFETIME HYBRID |  | COMPANY, LLC <sup>(1)</sup> |
|  |  | COLLECTIVE INVESTMENT FUNDS |  |  |
|  |  | 1300 SW 5TH AVE STE 3300 |  |  |
|  |  | PORTLAND OR 97201-5640 |  |  |
| INFLATION PROTECTION | 42.85% | PRINCIPAL GLOBAL INVESTORS TRUST CO | DELAWARE | PRINCIPAL HOLDING |
|  |  | PRINCIPAL LIFETIME HYBRID |  | COMPANY, LLC <sup>(1)</sup> |
|  |  | COLLECTIVE INVESTMENT FUNDS |  |  |
|  |  | 1300 SW 5TH AVE STE 3300 |  |  |
|  |  | PORTLAND OR 97201-5640 |  |  |
| LARGECAP GROWTH I | 48.72% | PRINCIPAL LIFE INS COMPANY CUST | IOWA | PRINCIPAL FINANCIAL |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |  | SERVICES, INC. <sup>(1)</sup> |
|  |  | ATTN PLIC PROXY COORDINATOR FUNDS |  |  |
|  |  | 711 HIGH STREET |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| MIDCAP VALUE I | 46.86% | PRINCIPAL LIFE INS COMPANY CUST | IOWA | PRINCIPAL FINANCIAL |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |  | SERVICES, INC. <sup>(1)</sup> |
|  |  | ATTN PLIC PROXY COORDINATOR FUNDS |  |  |
|  |  | 711 HIGH STREET |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Fund** | **<br>Percent<br>of<br>Ownership** | **Shareholder Name and Address** | **Jurisdiction Under Which Control Person <br>is Organized <br>(when control person <br>is a company)** | **Parent of Control<br>Person (when control<br>person is a company)** |
| MIDCAP VALUE I | 28.11% | PERSHING LLC | DELAWARE | BANK OF NEW YORK |
|  |  | 1 PERSHING PLZ |  | MELLON CORPORATION |
|  |  | JERSEY CITY NJ 07399-0001 |  |  |
| OVERSEAS | 33.63% | PRINCIPAL LIFE INS COMPANY CUST | IOWA | PRINCIPAL FINANCIAL |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |  | SERVICES, INC. <sup>(1)</sup> |
|  |  | ATTN PLIC PROXY COORDINATOR FUNDS |  |  |
|  |  | 711 HIGH STREET |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| PRINCIPAL LIFETIME | 48.78% | PRINCIPAL LIFE INS COMPANY CUST | IOWA | PRINCIPAL FINANCIAL |
| STRATEGIC INCOME |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |  | SERVICES, INC. <sup>(1)</sup> |
|  |  | ATTN PLIC PROXY COORDINATOR FUNDS |  |  |
|  |  | 711 HIGH STREET |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| PRINCIPAL LIFETIME 2015 | 76.57% | PRINCIPAL LIFE INS COMPANY CUST | IOWA | PRINCIPAL FINANCIAL |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |  | SERVICES, INC. <sup>(1)</sup> |
|  |  | ATTN PLIC PROXY COORDINATOR FUNDS |  |  |
|  |  | 711 HIGH STREET |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| PRINCIPAL LIFETIME 2020 | 49.28% | PRINCIPAL LIFE INS COMPANY CUST | IOWA | PRINCIPAL FINANCIAL |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |  | SERVICES, INC. <sup>(1)</sup> |
|  |  | ATTN PLIC PROXY COORDINATOR FUNDS |  |  |
|  |  | 711 HIGH STREET |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| PRINCIPAL LIFETIME 2025 | 77.92% | PRINCIPAL LIFE INS COMPANY CUST | IOWA | PRINCIPAL FINANCIAL |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |  | SERVICES, INC. <sup>(1)</sup> |
|  |  | ATTN PLIC PROXY COORDINATOR FUNDS |  |  |
|  |  | 711 HIGH STREET |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| PRINCIPAL LIFETIME 2030 | 61.01% | PRINCIPAL LIFE INS COMPANY CUST | IOWA | PRINCIPAL FINANCIAL |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |  | SERVICES, INC. <sup>(1)</sup> |
|  |  | ATTN PLIC PROXY COORDINATOR FUNDS |  |  |
|  |  | 711 HIGH STREET |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| PRINCIPAL LIFETIME 2035 | 78.30% | PRINCIPAL LIFE INS COMPANY CUST | IOWA | PRINCIPAL FINANCIAL |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |  | SERVICES, INC. <sup>(1)</sup> |
|  |  | ATTN PLIC PROXY COORDINATOR FUNDS |  |  |
|  |  | 711 HIGH STREET |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| PRINCIPAL LIFETIME 2040 | 61.81% | PRINCIPAL LIFE INS COMPANY CUST | IOWA | PRINCIPAL FINANCIAL |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |  | SERVICES, INC. <sup>(1)</sup> |
|  |  | ATTN PLIC PROXY COORDINATOR FUNDS |  |  |
|  |  | 711 HIGH STREET |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |

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| | | | | |
|:---|:---|:---|:---|:---|
| **Fund** | **<br>Percent<br>of<br>Ownership** | **Shareholder Name and Address** | **Jurisdiction Under Which Control Person <br>is Organized <br>(when control person <br>is a company)** | **Parent of Control<br>Person (when control<br>person is a company)** |
| PRINCIPAL LIFETIME 2045 | 75.62% | PRINCIPAL LIFE INS COMPANY CUST | IOWA | PRINCIPAL FINANCIAL |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |  | SERVICES, INC. <sup>(1)</sup> |
|  |  | ATTN PLIC PROXY COORDINATOR FUNDS |  |  |
|  |  | 711 HIGH STREET |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| PRINCIPAL LIFETIME 2050 | 67.22% | PRINCIPAL LIFE INS COMPANY CUST | IOWA | PRINCIPAL FINANCIAL |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |  | SERVICES, INC. <sup>(1)</sup> |
|  |  | ATTN PLIC PROXY COORDINATOR FUNDS |  |  |
|  |  | 711 HIGH STREET |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| PRINCIPAL LIFETIME 2055 | 74.20% | PRINCIPAL LIFE INS COMPANY CUST | IOWA | PRINCIPAL FINANCIAL |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |  | SERVICES, INC. <sup>(1)</sup> |
|  |  | ATTN PLIC PROXY COORDINATOR FUNDS |  |  |
|  |  | 711 HIGH STREET |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| PRINCIPAL LIFETIME 2060 | 78.07% | PRINCIPAL LIFE INS COMPANY CUST | IOWA | PRINCIPAL FINANCIAL |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |  | SERVICES, INC. <sup>(1)</sup> |
|  |  | ATTN PLIC PROXY COORDINATOR FUNDS |  |  |
|  |  | 711 HIGH STREET |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| PRINCIPAL LIFETIME 2065 | 81.26% | PRINCIPAL LIFE INS COMPANY CUST | IOWA | PRINCIPAL FINANCIAL |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |  | SERVICES, INC. <sup>(1)</sup> |
|  |  | ATTN PLIC PROXY COORDINATOR FUNDS |  |  |
|  |  | 711 HIGH STREET |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| PRINCIPAL LIFETIME 2070 | 83.87% | PRINCIPAL LIFE INS COMPANY CUST | IOWA | PRINCIPAL FINANCIAL |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |  | SERVICES, INC. <sup>(1)</sup> |
|  |  | ATTN PLIC PROXY COORDINATOR FUNDS |  |  |
|  |  | 711 HIGH STREET |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| PRINCIPAL LIFETIME | 29.21% | DCGT AS TTEE AND/OR CUST | DELAWARE | PRINCIPAL HOLDING |
| HYBRID 2020 |  | FBO PLIC VARIOUS RETIREMENT PLANS |  | COMPANY, LLC <sup>(1)</sup> |
|  |  | OMNIBUS |  |  |
|  |  | ATTN NPIO TRADE DESK |  |  |
|  |  | 711 HIGH ST |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| PRINCIPAL LIFETIME | 25.80% | DCGT AS TTEE AND/OR CUST | DELAWARE | PRINCIPAL HOLDING |
| HYBRID 2030 |  | FBO PLIC VARIOUS RETIREMENT PLANS |  | COMPANY, LLC <sup>(1)</sup> |
|  |  | OMNIBUS |  |  |
|  |  | ATTN NPIO TRADE DESK |  |  |
|  |  | 711 HIGH ST |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fund** | **<br>Percent<br>of<br>Ownership** | **Shareholder Name and Address** | **Jurisdiction Under Which Control Person <br>is Organized <br>(when control person <br>is a company)** | **Parent of Control<br>Person (when control<br>person is a company)** |
| PRINCIPAL LIFETIME | 33.27% | DCGT AS TTEE AND/OR CUST | DELAWARE | PRINCIPAL HOLDING |
| HYBRID 2035 |  | FBO PLIC VARIOUS RETIREMENT PLANS |  | COMPANY, LLC <sup>(1)</sup> |
|  |  | OMNIBUS |  |  |
|  |  | ATTN NPIO TRADE DESK |  |  |
|  |  | 711 HIGH ST |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| PRINCIPAL LIFETIME | 30.74% | DCGT AS TTEE AND/OR CUST | DELAWARE | PRINCIPAL HOLDING |
| HYBRID 2040 |  | FBO PLIC VARIOUS RETIREMENT PLANS |  | COMPANY, LLC <sup>(1)</sup> |
|  |  | OMNIBUS |  |  |
|  |  | ATTN NPIO TRADE DESK |  |  |
|  |  | 711 HIGH ST |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| PRINCIPAL LIFETIME | 47.49% | DCGT AS TTEE AND/OR CUST | DELAWARE | PRINCIPAL HOLDING |
| HYBRID 2045 |  | FBO PLIC VARIOUS RETIREMENT PLANS |  | COMPANY, LLC <sup>(1)</sup> |
|  |  | OMNIBUS |  |  |
|  |  | ATTN NPIO TRADE DESK |  |  |
|  |  | 711 HIGH ST |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| PRINCIPAL LIFETIME | 51.04% | DCGT AS TTEE AND/OR CUST | DELAWARE | PRINCIPAL HOLDING |
| HYBRID 2050 |  | FBO PLIC VARIOUS RETIREMENT PLANS |  | COMPANY, LLC <sup>(1)</sup> |
|  |  | OMNIBUS |  |  |
|  |  | ATTN NPIO TRADE DESK |  |  |
|  |  | 711 HIGH ST |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| PRINCIPAL LIFETIME | 51.77% | DCGT AS TTEE AND/OR CUST | DELAWARE | PRINCIPAL HOLDING |
| HYBRID 2055 |  | FBO PLIC VARIOUS RETIREMENT PLANS |  | COMPANY, LLC <sup>(1)</sup> |
|  |  | OMNIBUS |  |  |
|  |  | ATTN NPIO TRADE DESK |  |  |
|  |  | 711 HIGH ST |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| PRINCIPAL LIFETIME | 49.00% | DCGT AS TTEE AND/OR CUST | DELAWARE | PRINCIPAL HOLDING |
| HYBRID 2060 |  | FBO PLIC VARIOUS RETIREMENT PLANS |  | COMPANY, LLC <sup>(1)</sup> |
|  |  | OMNIBUS |  |  |
|  |  | ATTN NPIO TRADE DESK |  |  |
|  |  | 711 HIGH ST |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| PRINCIPAL LIFETIME | 47.46% | DCGT AS TTEE AND/OR CUST | DELAWARE | PRINCIPAL HOLDING |
| HYBRID 2065 |  | FBO PLIC VARIOUS RETIREMENT PLANS |  | COMPANY, LLC <sup>(1)</sup> |
|  |  | ATTN NPIO TRADE DESK |  |  |
|  |  | OMNIBUS |  |  |
|  |  | 711 HIGH STREET |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| PRINCIPAL LIFETIME | 54.60% | DCGT AS TTEE AND/OR CUST | DELAWARE | PRINCIPAL HOLDING |
| HYBRID 2070 |  | FBO PLIC VARIOUS RETIREMENT PLANS |  | COMPANY, LLC <sup>(1)</sup> |
|  |  | OMNIBUS |  |  |
|  |  | ATTN NPIO TRADE DESK |  |  |
|  |  | 711 HIGH STREET |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Fund** | **<br>Percent<br>of<br>Ownership** | **Shareholder Name and Address** | **Jurisdiction Under Which Control Person <br>is Organized <br>(when control person <br>is a company)** | **Parent of Control<br>Person (when control<br>person is a company)** |
| SAM FLEXIBLE INCOME | 90.91% | PRINCIPAL LIFE INSURANCE CO CUST | IOWA | PRINCIPAL FINANCIAL |
| PORTFOLIO |  | FLEX VARIABLE LIFE INS |  | SERVICES, INC. <sup>(1)</sup> |
|  |  | ATTN IND ACCTNG G-12-S41 |  |  |
|  |  | 711 HIGH ST |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| SMALLCAP GROWTH I | 47.73% | PRINCIPAL LIFE INS COMPANY CUST | IOWA | PRINCIPAL FINANCIAL |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |  | SERVICES, INC. <sup>(1)</sup> |
|  |  | ATTN PLIC PROXY COORDINATOR FUNDS |  |  |
|  |  | 711 HIGH STREET |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| SMALLCAP VALUE II | 50.04% | PRINCIPAL LIFE INS COMPANY CUST | IOWA | PRINCIPAL FINANCIAL |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |  | SERVICES, INC. <sup>(1)</sup> |
|  |  | ATTN PLIC PROXY COORDINATOR FUNDS |  |  |
|  |  | 711 HIGH STREET |  |  |
|  |  | DES MOINES IA 50392-0001 |  |  |
| TAX-EXEMPT BOND | 26.69% | NATIONAL FINANCIAL SERVICES LLC | DELAWARE | FIDELITY GLOBAL |
| FUND |  | FOR THE EXCL BENE OF OUR CUSTOMERS |  | BROKERAGE GROUP, |
|  |  | 499 WASHINGTON BLVD |  | INC. a wholly owned |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |  | subsidiary of FMR, LLC |
|  |  | JERSEY CITY NJ 07310-1995 |  |  |
| <sup>(1)</sup>Principal Financial Group, Inc. is the parent of control for Principal Financial Services, Inc.; Principal Financial Services, Inc. is the parent of control for Principal Life Insurance Company and Principal Global Investors, LLC; Principal Life Insurance Company is the parent of control for Principal Holding Company, LLC. | <sup>(1)</sup>Principal Financial Group, Inc. is the parent of control for Principal Financial Services, Inc.; Principal Financial Services, Inc. is the parent of control for Principal Life Insurance Company and Principal Global Investors, LLC; Principal Life Insurance Company is the parent of control for Principal Holding Company, LLC. | <sup>(1)</sup>Principal Financial Group, Inc. is the parent of control for Principal Financial Services, Inc.; Principal Financial Services, Inc. is the parent of control for Principal Life Insurance Company and Principal Global Investors, LLC; Principal Life Insurance Company is the parent of control for Principal Holding Company, LLC. | <sup>(1)</sup>Principal Financial Group, Inc. is the parent of control for Principal Financial Services, Inc.; Principal Financial Services, Inc. is the parent of control for Principal Life Insurance Company and Principal Global Investors, LLC; Principal Life Insurance Company is the parent of control for Principal Holding Company, LLC. | <sup>(1)</sup>Principal Financial Group, Inc. is the parent of control for Principal Financial Services, Inc.; Principal Financial Services, Inc. is the parent of control for Principal Life Insurance Company and Principal Global Investors, LLC; Principal Life Insurance Company is the parent of control for Principal Holding Company, LLC. |

---

The Board Members and officers of the Funds, member companies of the Principal Financial Group, and certain other persons may purchase shares of the Funds without the payment of any sales charge. The sales charge is waived on these transactions because there are either no distribution costs or only minimal distribution costs associated with the transactions. For a description of the persons entitled to a waiver of sales charge in connection with their purchase of shares of the Funds, see the discussion of the waiver of sales charges under the caption "Choosing a Share Class and the Costs of Investing" in the Prospectus.

Funds that operate as funds of funds and Principal Life Insurance Company will vote in the same proportion as shares of the Funds owned by other shareholders. Therefore, neither the funds of funds nor Principal Life Insurance Company exercise voting discretion.

A quorum must be present at a meeting of shareholders for business to be transacted. PFI's Bylaws state that a quorum is the presence in person or by proxy of the holders of one-third of the shares of capital stock of PFI or, when the meeting relates to a certain Fund, that Fund, issued and outstanding and entitled to vote on the record date.

Certain proposals presented to shareholders for approval require the vote of a "majority of the outstanding voting securities," which is a term defined in the 1940 Act to mean, with respect to a Fund, the affirmative vote of the lesser of 1) 67% or more of the voting securities of the Fund present at the meeting of that Fund, if the holders of more than 50% of the outstanding voting securities of the Fund are present in person or by proxy, or 2) more than 50% of the outstanding voting securities of the Fund).

------

**Principal Holders of Securities**

The Registrant is unaware of any persons who own beneficially (but are not shareholders of record) 5% or more of any class of the Funds' outstanding shares. The following list identifies the shareholders of record who own 5% or more of any class of the Funds' outstanding shares as of January 30, 2026. The list is presented in alphabetical order by Fund.

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| CALIFORNIA MUNICIPAL (A) | 41.91% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |
| CALIFORNIA MUNICIPAL (A) | 12.80% | J. P. MORGAN SECURITIES LLC |
|  |  | FBO EXCLUSIVE BENEFIT OF OUR CUST |
|  |  | 4 CHASE METROTECH CTR |
|  |  | BROOKLYN NY 11245-0003 |
| CALIFORNIA MUNICIPAL (A) | 10.00% | MLPF&S FOR THE SOLE |
|  |  | BENEFIT OF ITS CUSTOMERS |
|  |  | ATTN FUND ADMINISTRATION |
|  |  | 4800 DEER LAKE DR EAST |
|  |  | BUILDING ONE, 2ND FLOOR |
|  |  | JACKSONVILLE FL 32246-6484 |
| CALIFORNIA MUNICIPAL (A) | 7.72% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| CALIFORNIA MUNICIPAL (A) | 7.05% | PERSHING LLC |
|  |  | 1 PERSHING PLZ |
|  |  | JERSEY CITY NJ 07399-0001 |
| CALIFORNIA MUNICIPAL (A) | 5.87% | MORGAN STANLEY SMITH BARNEY LLC |
|  |  | FOR THE EXCLUSIVE BENE OF ITS CUST |
|  |  | 1 NEW YORK PLZ FL 12 |
|  |  | NEW YORK NY 10004-1965 |
| CALIFORNIA MUNICIPAL (C) | 65.34% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |
| CALIFORNIA MUNICIPAL (C) | 9.61% | PERSHING LLC |
|  |  | 1 PERSHING PLZ |
|  |  | JERSEY CITY NJ 07399-0001 |
| CALIFORNIA MUNICIPAL (C) | 9.43% | LPL FINANCIAL |
|  |  | OMNIBUS CUSTOMER ACCOUNT |
|  |  | ATTN MUTUAL FUND TRADING |
|  |  | 4707 EXECUTIVE DR |
|  |  | SAN DIEGO CA 92121-3091 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| CALIFORNIA MUNICIPAL (C) | 7.99% | MORGAN STANLEY SMITH BARNEY LLC |
|  |  | FOR THE EXCLUSIVE BENE OF ITS CUST |
|  |  | 1 NEW YORK PLZ FL 12 |
|  |  | NEW YORK NY 10004-1965 |
| CALIFORNIA MUNICIPAL (I) | 22.42% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |
| CALIFORNIA MUNICIPAL (I) | 20.51% | MORGAN STANLEY SMITH BARNEY LLC |
|  |  | FOR THE EXCLUSIVE BENE OF ITS CUST |
|  |  | 1 NEW YORK PLZ FL 12 |
|  |  | NEW YORK NY 10004-1965 |
| CALIFORNIA MUNICIPAL (I) | 11.86% | MLPF&S FOR THE SOLE |
|  |  | BENEFIT OF ITS CUSTOMERS |
|  |  | ATTN FUND ADMINISTRATION |
|  |  | 4800 DEER LAKE DR E FL 2 |
|  |  | JACKSONVILLE FL 32246-6484 |
| CALIFORNIA MUNICIPAL (I) | 11.37% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| CALIFORNIA MUNICIPAL (I) | 10.66% | AMERICAN ENTERPRISE INVESTMENT SVC |
|  |  | FBO #XXXXXXXX |
|  |  | 707 2ND AVE S |
|  |  | MINNEAPOLIS MN 55402-2405 |
| CALIFORNIA MUNICIPAL (I) | 9.70% | LPL FINANCIAL |
|  |  | OMNIBUS CUSTOMER ACCOUNT |
|  |  | ATTN MUTUAL FUND TRADING |
|  |  | 4707 EXECUTIVE DR |
|  |  | SAN DIEGO CA 92121-3091 |
| CORE FIXED INCOME (A) | 26.21% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| CORE FIXED INCOME (A) | 8.18% | J. P. MORGAN SECURITIES LLC |
|  |  | FBO EXCLUSIVE BENEFIT OF OUR CUST |
|  |  | 4 CHASE METROTECH CTR |
|  |  | BROOKLYN NY 11245-0003 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| CORE FIXED INCOME (A) | 8.03% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |
| CORE FIXED INCOME (I) | 30.89% | CHARLES SCHWAB & CO INC |
|  |  | SPECIAL CUSTODY A/C FBO CUSTOMERS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 211 MAIN STREET |
|  |  | SAN FRANCISCO CA 94105-1901 |
| CORE FIXED INCOME (I) | 14.94% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| CORE FIXED INCOME (I) | 11.86% | AMERICAN ENTERPRISE INVESTMENT SVC |
|  |  | FBO #XXXXXXXX |
|  |  | 707 2ND AVE S |
|  |  | MINNEAPOLIS MN 55402-2405 |
| CORE FIXED INCOME (I) | 8.34% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| CORE FIXED INCOME (I) | 8.26% | PERSHING LLC |
|  |  | 1 PERSHING PLZ |
|  |  | JERSEY CITY NJ 07399-0001 |
| CORE FIXED INCOME (I) | 6.44% | CHARLES SCHWAB & CO INC |
|  |  | SPECIAL CUSTODY A/C FOR THE |
|  |  | BENEFIT OF CUSTOMERS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 101 MONTGOMERY ST |
|  |  | SAN FRANCISCO CA 94104-4141 |
| CORE FIXED INCOME (R3) | 52.29% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| CORE FIXED INCOME (R3) | 30.58% | VOYA INSTITUTIONAL TRUST COMPANY |
|  |  | 1 ORANGE WAY |
|  |  | WINDSOR CT 06095-4773 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| CORE FIXED INCOME (R3) | 7.56% | SAMMONS INSTITUTIONAL GROUP |
|  |  | 8300 MILLS CIVIC PKWY |
|  |  | WDM IA 50266-3833 |
| CORE FIXED INCOME (R5) | 86.71% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| CORE FIXED INCOME (R5) | 5.01% | RELIANCE TRUST COMPANY FBO |
|  |  | T ROWE PRICE RETIREMENT |
|  |  | PLAN CLIENTS |
|  |  | PO BOX 78446 |
|  |  | ATLANTA GA 30357 |
| CORE FIXED INCOME (R6) | 19.24% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| CORE FIXED INCOME (R6) | 14.73% | LIFETIME 2030 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING- H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| CORE FIXED INCOME (R6) | 9.01% | LIFETIME 2040 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING-H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| CORE FIXED INCOME (R6) | 6.66% | SAM FLEXIBLE INCOME PORTFOLIO PIF |
|  |  | ATTN MUTUAL FUND ACCOUNTING-H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| CORE FIXED INCOME (R6) | 6.45% | LIFETIME 2020 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING H-221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| CORE FIXED INCOME (R6) | 5.96% | LIFETIME 2035 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING- H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| CORE FIXED INCOME (R6) | 5.88% | SAM BALANCED PORTFOLIO PIF |
|  |  | ATTN MUTUAL FUND ACCOUNTING - H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| CORE PLUS BOND (A) | 15.24% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| CORE PLUS BOND (I) | 75.62% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| CORE PLUS BOND (I) | 10.88% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| CORE PLUS BOND (R3) | 80.85% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| CORE PLUS BOND (R5) | 59.90% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| CORE PLUS BOND (R5) | 6.73% | NORTHWEST ADMINISTRATORS |
|  |  | FBO NQ EXCESS OF NW ADMINISTRATORS |
|  |  | ATTN GAYLE BUSHNELL |
|  |  | 2323 EASTLAKE AVE E |
|  |  | SEATTLE WA 98102-3305 |
| CORE PLUS BOND (R5) | 6.53% | NEW-PRESS & GAZETTE CO |
|  |  | FBO NPGC NQ DEF COMP PLAN |
|  |  | ATTN LYLE LEIMKUHLER |
|  |  | PO BOX 29 |
|  |  | SAINT JOSEPH MO 64502-0029 |
| CORE PLUS BOND (R5) | 5.92% | BANKERS TRUST COMPANY |
|  |  | FBO II-VI, INC DEFERRED |
|  |  | COMPENSATION PLAN |
|  |  | ATTN DEBBIE WILLIAMS |
|  |  | 453 7TH ST |
|  |  | DES MOINES IA 50309-4110 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| DIVERSIFIED INCOME (A) | 14.74% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |
| DIVERSIFIED INCOME (A) | 11.31% | MORGAN STANLEY SMITH BARNEY LLC |
|  |  | FOR THE EXCLUSIVE BENE OF ITS CUST |
|  |  | 1 NEW YORK PLZ FL 12 |
|  |  | NEW YORK NY 10004-1965 |
| DIVERSIFIED INCOME (A) | 11.12% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| DIVERSIFIED INCOME (A) | 10.22% | MLPF&S FOR THE SOLE |
|  |  | BENEFIT OF ITS CUSTOMERS |
|  |  | ATTN FUND ADMINISTRATION |
|  |  | 4800 DEER LAKE DR E FL 3 |
|  |  | JACKSONVILLE FL 32246-6484 |
| DIVERSIFIED INCOME (A) | 6.71% | RAYMOND JAMES |
|  |  | OMNIBUS FOR MUTUAL FUNDS |
|  |  | HOUSE ACCT FIRM XXXXXXXX |
|  |  | ATTN: COURTNEY WALLER |
|  |  | 880 CARILLON PKWY |
|  |  | ST PETERSBURG FL 33716-1102 |
| DIVERSIFIED INCOME (A) | 6.34% | CHARLES SCHWAB & CO INC |
|  |  | SPECIAL CUSTODY A/C FBO CUSTOMERS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 211 MAIN STREET |
|  |  | SAN FRANCISCO CA 94105-1901 |
| DIVERSIFIED INCOME (C) | 32.48% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |
| DIVERSIFIED INCOME (C) | 17.13% | RAYMOND JAMES |
|  |  | OMNIBUS FOR MUTUAL FUNDS |
|  |  | HOUSE ACCT FIRM XXXXXXXX |
|  |  | ATTN: COURTNEY WALLER |
|  |  | 880 CARILLON PKWY |
|  |  | ST PETERSBURG FL 33716-1102 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| DIVERSIFIED INCOME (C) | 12.64% | CHARLES SCHWAB & CO INC |
|  |  | FBO SPECIAL CUSTODY ACCOUNTS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 211 MAIN ST |
|  |  | SAN FRANCISCO CA 94105-1901 |
| DIVERSIFIED INCOME (C) | 8.33% | MORGAN STANLEY SMITH BARNEY LLC |
|  |  | FOR THE EXCLUSIVE BENE OF ITS CUST |
|  |  | 1 NEW YORK PLZ FL 12 |
|  |  | NEW YORK NY 10004-1965 |
| DIVERSIFIED INCOME (C) | 5.08% | PERSHING LLC |
|  |  | 1 PERSHING PLZ |
|  |  | JERSEY CITY NJ 07399-0001 |
| DIVERSIFIED INCOME (I) | 14.15% | MLPF&S FOR THE SOLE |
|  |  | BENEFIT OF ITS CUSTOMERS |
|  |  | ATTN FUND ADMINISTRATION |
|  |  | 4800 DEER LAKE DR E FL 3 |
|  |  | JACKSONVILLE FL 32246-6484 |
| DIVERSIFIED INCOME (I) | 13.59% | MORGAN STANLEY SMITH BARNEY LLC |
|  |  | FOR THE EXCLUSIVE BENE OF ITS CUST |
|  |  | 1 NEW YORK PLZ FL 12 |
|  |  | NEW YORK NY 10004-1965 |
| DIVERSIFIED INCOME (I) | 10.34% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| DIVERSIFIED INCOME (I) | 9.19% | CHARLES SCHWAB & CO INC |
|  |  | SPECIAL CUSTODY A/C FOR THE |
|  |  | BENEFIT OF CUSTOMERS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 101 MONTGOMERY ST |
|  |  | SAN FRANCISCO CA 94104-4141 |
| DIVERSIFIED INCOME (I) | 8.87% | UBS WM USA |
|  |  | 0O0 11011 6100 |
|  |  | OMNI ACCOUNT M/F |
|  |  | SPEC CDY A/C EBOC UBSFSI |
|  |  | 1000 HARBOR BLVD |
|  |  | WEEHAWKEN NJ 07086-6761 |
| DIVERSIFIED INCOME (I) | 8.33% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| DIVERSIFIED INCOME (I) | 8.00% | RAYMOND JAMES |
|  |  | OMNIBUS FOR MUTUAL FUNDS |
|  |  | HOUSE ACCT FIRM XXXXXXXX |
|  |  | ATTN: COURTNEY WALLER |
|  |  | 880 CARILLON PKWY |
|  |  | ST PETERSBURG FL 33716-1102 |
| DIVERSIFIED INCOME (I) | 7.94% | LPL FINANCIAL |
|  |  | OMNIBUS CUSTOMER ACCOUNT |
|  |  | ATTN MUTUAL FUND TRADING |
|  |  | 4707 EXECUTIVE DR |
|  |  | SAN DIEGO CA 92121-3091 |
| DIVERSIFIED INCOME (I) | 5.08% | AMERICAN ENTERPRISE INVESTMENT SVC |
|  |  | FBO #XXXXXXXX |
|  |  | 707 2ND AVE S |
|  |  | MINNEAPOLIS MN 55402-2405 |
| DIVERSIFIED INCOME (R6) | 47.72% | CHARLES SCHWAB & CO INC |
|  |  | SPECIAL CUSTODY ACCT FBO CUSTOMERS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 211 MAIN STREET |
|  |  | SAN FRANCISCO CA 94105-1901 |
| DIVERSIFIED INCOME (R6) | 12.29% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| DIVERSIFIED INTERNATIONAL (A) | 14.89% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| DIVERSIFIED INTERNATIONAL (I) | 23.17% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| DIVERSIFIED INTERNATIONAL (I) | 15.72% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| DIVERSIFIED INTERNATIONAL (I) | 8.29% | MID ATLANTIC TRUST COMPANY FBO |
|  |  | POPULAR INC PR SAV & INV PLAN |
|  |  | 1251 WATERFRONT PLACE SUITE 525 |
|  |  | PITTSBURGH PA 15222-4228 |
| DIVERSIFIED INTERNATIONAL (I) | 6.34% | LPL FINANCIAL |
|  |  | OMNIBUS CUSTOMER ACCOUNT |
|  |  | ATTN MUTUAL FUND TRADING |
|  |  | 4707 EXECUTIVE DR |
|  |  | SAN DIEGO CA 92121-3091 |
| DIVERSIFIED INTERNATIONAL (R3) | 61.27% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| DIVERSIFIED INTERNATIONAL (R3) | 6.69% | BONGARDS CREAMERIES INC |
|  |  | FBO BONGARDS CREAMERIES DEF COMP |
|  |  | PLAN |
|  |  | ATTN CHRIS FREEMAN |
|  |  | 13200 COUNTY ROAD 51 |
|  |  | NORWOOD MN 55368-9743 |
| DIVERSIFIED INTERNATIONAL (R3) | 5.16% | SAMMONS INSTITUTIONAL GROUP |
|  |  | 8300 MILLS CIVIC PKWY |
|  |  | WDM IA 50266-3833 |
| DIVERSIFIED INTERNATIONAL (R5) | 71.60% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| DIVERSIFIED INTERNATIONAL (R6) | 24.52% | MAC & CO A\C XXXXXXXX |
|  |  | ATTN MUTUAL FUND OPERATIONS |
|  |  | 500 GRANT STREET RM 151-1010 |
|  |  | PITTSBURGH PA 15219-2502 |
| DIVERSIFIED INTERNATIONAL (R6) | 8.65% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | OMNIBUS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| EQUITY INCOME (A) | 16.88% | J. P. MORGAN SECURITIES LLC |
|  |  | FBO EXCLUSIVE BENEFIT OF OUR CUST |
|  |  | 4 CHASE METROTECH CTR |
|  |  | BROOKLYN NY 11245-0003 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| EQUITY INCOME (A) | 13.46% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| EQUITY INCOME (A) | 9.51% | CHARLES SCHWAB & CO INC |
|  |  | SPECIAL CUSTODY A/C FOR THE |
|  |  | BENIFIT OF CUSTOMERS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 101 MONTGOMERY ST |
|  |  | SAN FRANCISCO CA 94104-4141 |
| EQUITY INCOME (A) | 5.50% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |
| EQUITY INCOME (C) | 23.64% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |
| EQUITY INCOME (C) | 16.39% | RAYMOND JAMES |
|  |  | OMNIBUS FOR MUTUAL FUNDS |
|  |  | HOUSE ACCT FIRM XXXXXXXX |
|  |  | ATTN: COURTNEY WALLER |
|  |  | 880 CARILLON PKWY |
|  |  | ST PETERSBURG FL 33716-1102 |
| EQUITY INCOME (C) | 12.74% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| EQUITY INCOME (C) | 10.62% | CHARLES SCHWAB & CO INC |
|  |  | FBO SPECIAL CUSTODY ACCOUNTS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 211 MAIN ST |
|  |  | SAN FRANCISCO CA 94105-1901 |
| EQUITY INCOME (C) | 7.53% | PERSHING LLC |
|  |  | 1 PERSHING PLZ |
|  |  | JERSEY CITY NJ 07399-0001 |
| EQUITY INCOME (C) | 7.02% | MORGAN STANLEY SMITH BARNEY LLC |
|  |  | FOR THE EXCLUSIVE BENE OF ITS CUST |
|  |  | 1 NEW YORK PLZ FL 12 |
|  |  | NEW YORK NY 10004-1965 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| EQUITY INCOME (I) | 28.38% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| EQUITY INCOME (I) | 13.84% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| EQUITY INCOME (I) | 5.27% | SAM BALANCED PORTFOLIO PIF |
|  |  | ATTN MUTUAL FUND ACCOUNTING - H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| EQUITY INCOME (R3) | 53.14% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| EQUITY INCOME (R3) | 30.31% | SAMMONS INSTITUTIONAL GROUP |
|  |  | 8300 MILLS CIVIC PKWY |
|  |  | WDM IA 50266-3833 |
| EQUITY INCOME (R5) | 79.40% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| EQUITY INCOME (R5) | 6.54% | JOHN HANCOCK TRUST COMPANY LLC |
|  |  | 200 BERKELEY ST STE 7 |
|  |  | BOSTON MA 02116-5038 |
| FINISTERRE EMERGING MARKETS TOTAL | 19.54% | SAM FLEXIBLE INCOME PORTFOLIO PIF |
| RETURN BOND (I) |  | ATTN MUTUAL FUND ACCOUNTING-H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| FINISTERRE EMERGING MARKETS TOTAL | 15.62% | SAM BALANCED PORTFOLIO PIF |
| RETURN BOND (I) |  | ATTN MUTUAL FUND ACCOUNTING - H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| FINISTERRE EMERGING MARKETS TOTAL | 12.79% | SAM CONS BALANCED PORTFOLIO PIF |
| RETURN BOND (I) |  | ATTN MUTUAL FUND ACCOUNTING-H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| FINISTERRE EMERGING MARKETS TOTAL | 11.93% | MORGAN STANLEY SMITH BARNEY LLC |
| RETURN BOND (I) |  | FOR THE EXCLUSIVE BENE OF ITS CUST |
|  |  | 1 NEW YORK PLZ FL 12 |
|  |  | NEW YORK NY 10004-1965 |
| FINISTERRE EMERGING MARKETS TOTAL | 7.34% | CHARLES SCHWAB & CO INC |
| RETURN BOND (I) |  | SPECIAL CUSTODY ACCT |
|  |  | FBO CUSTOMERS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 211 MAIN ST |
|  |  | SAN FRANCISCO CA 94105-1901 |
| FINISTERRE EMERGING MARKETS TOTAL | 7.18% | RAYMOND JAMES |
| RETURN BOND (I) |  | OMNIBUS FOR MUTUAL FUNDS |
|  |  | HOUSE ACCT FIRM XXXXXXXX |
|  |  | ATTN: COURTNEY WALLER |
|  |  | 880 CARILLON PKWY |
|  |  | ST PETERSBURG FL 33716-1102 |
| FINISTERRE EMERGING MARKETS TOTAL | 7.07% | NATIONAL FINANCIAL SERVICES LLC |
| RETURN BOND (I) |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| FINISTERRE EMERGING MARKETS TOTAL | 5.06% | SAM CONS GROWTH PORTFOLIO PIF |
| RETURN BOND (I) |  | ATTN MUTUAL FUND ACCOUNTING-H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| GLOBAL EMERGING MARKETS (A) | 19.65% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| GLOBAL EMERGING MARKETS (I) | 63.91% | CHARLES SCHWAB & CO INC |
|  |  | SPECIAL CUSTODY A/C FBO CUSTOMERS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 211 MAIN STREET |
|  |  | SAN FRANCISCO CA 94105-1901 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| GLOBAL EMERGING MARKETS (I) | 11.95% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| GLOBAL EMERGING MARKETS (I) | 6.40% | PRINCIPAL GLOBAL INVESTORS LLC |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| GLOBAL EMERGING MARKETS (R3) | 72.69% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| GLOBAL EMERGING MARKETS (R3) | 5.57% | ALLTECH INC |
|  |  | FBO NQDC OF ALLTECH INC |
|  |  | ATTN ANGIE FORESTER |
|  |  | 3031 CATNIP HILL RD |
|  |  | NICHOLASVILLE KY 40356-9765 |
| GLOBAL EMERGING MARKETS (R5) | 59.97% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| GLOBAL EMERGING MARKETS (R5) | 6.56% | PRINCIPAL TRUST COMPANY |
|  |  | FBO CRST INTL NQ PLAN |
|  |  | ATTN SUSAN SAGGIONE |
|  |  | 1013 CENTRE RD |
|  |  | WILMINGTON DE 19805-1265 |
| GLOBAL EMERGING MARKETS (R5) | 5.95% | PRINCIPAL TRUST COMPANY |
|  |  | ATTN PLAN TRUSTEE |
|  |  | FBO TOM WOOD INC NQ DEF COMP PLANS |
|  |  | 1013 CENTRE RD |
|  |  | WILMINGTON DE 19805-1265 |
| GLOBAL EMERGING MARKETS (R6) | 56.24% | PRINCIPAL GLOBAL INVESTORS TRUST CO |
|  |  | PRINCIPAL LIFETIME HYBRID |
|  |  | COLLECTIVE INVESTMENT FUNDS |
|  |  | 1300 SW 5TH AVE STE 3300 |
|  |  | PORTLAND OR 97201-5640 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| GLOBAL REAL ESTATE SECURITIES (A) | 21.23% | CHARLES SCHWAB & CO INC |
|  |  | SPECIAL CUSTODY A/C FBO CUSTOMERS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 101 MONTGOMERY STREET |
|  |  | SAN FRANCISCO CA 94104-4141 |
| GLOBAL REAL ESTATE SECURITIES (A) | 16.04% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| GLOBAL REAL ESTATE SECURITIES (A) | 8.54% | RAYMOND JAMES |
|  |  | OMNIBUS FOR MUTUAL FUNDS |
|  |  | HOUSE ACCT FIRM XXXXXXXX |
|  |  | ATTN: COURTNEY WALLER |
|  |  | 880 CARILLON PKWY |
|  |  | ST PETERSBURG FL 33716-1102 |
| GLOBAL REAL ESTATE SECURITIES (A) | 7.52% | MORGAN STANLEY SMITH BARNEY LLC |
|  |  | FOR THE EXCLUSIVE BENE OF ITS CUST |
|  |  | 1 NEW YORK PLZ FL 12 |
|  |  | NEW YORK NY 10004-1965 |
| GLOBAL REAL ESTATE SECURITIES (I) | 20.16% | CHARLES SCHWAB & CO INC |
|  |  | SPECIAL CUSTODY A/C FOR THE |
|  |  | BENIFIT OF CUSTOMERS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 101 MONTGOMERY ST |
|  |  | SAN FRANCISCO CA 94104-4141 |
| GLOBAL REAL ESTATE SECURITIES (I) | 19.40% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| GLOBAL REAL ESTATE SECURITIES (I) | 14.93% | UBATCO & CO |
|  |  | FBO COLLEGE SAVINGS GROUP |
|  |  | PO BOX 82535 |
|  |  | LINCOLN NE 68501-2535 |
| GLOBAL REAL ESTATE SECURITIES (I) | 11.94% | PERSHING LLC |
|  |  | 1 PERSHING PLZ |
|  |  | JERSEY CITY NJ 07399-0001 |
| GLOBAL REAL ESTATE SECURITIES (I) | 7.47% | MORGAN STANLEY SMITH BARNEY LLC |
|  |  | FOR THE EXCLUSIVE BENE OF ITS CUST |
|  |  | 1 NEW YORK PLZ FL 12 |
|  |  | NEW YORK NY 10004-1965 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| GLOBAL REAL ESTATE SECURITIES (R3) | 63.49% | SAMMONS INSTITUTIONAL GROUP |
|  |  | 8300 MILLS CIVIC PKWY |
|  |  | WDM IA 50266-3833 |
| GLOBAL REAL ESTATE SECURITIES (R3) | 19.80% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| GLOBAL REAL ESTATE SECURITIES (R3) | 15.66% | STATE STREET BANK CUSTODIAN CUST |
|  |  | FBO ACCESS ADP 401(K) PLAN |
|  |  | 1 LINCOLN STREET |
|  |  | BOSTON MA 02111-2901 |
| GLOBAL REAL ESTATE SECURITIES (R5) | 76.63% | EMPOWER TRUST FBO |
|  |  | EMPLOYEE BENEFIT CLIENTS 401K |
|  |  | 8515 E ORCHARD RD 2T2 |
|  |  | GREENWOOD VILLAGE CO 80111-5002 |
| GLOBAL REAL ESTATE SECURITIES (R5) | 12.30% | MID ATLANTIC TRUST COMPANY FBO |
|  |  | MATC OMNIBUS DIV REINVEST |
|  |  | 1251 WATERFRONT PL STE 525 |
|  |  | PITTSBURGH PA 15222-4228 |
| GLOBAL REAL ESTATE SECURITIES (R5) | 5.88% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| GLOBAL REAL ESTATE SECURITIES (R6) | 12.94% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | 499 WASHINGTON BLVD |
|  |  | JERSEY CITY NJ 07310-1995 |
| GLOBAL REAL ESTATE SECURITIES (R6) | 12.80% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| GLOBAL REAL ESTATE SECURITIES (R6) | 9.78% | SEI PRIVATE TRUST COMPANY |
|  |  | C/O COUNTRY FINANCIAL |
|  |  | 1 FREEDOM VALLEY DRIVE |
|  |  | OAKS PA 19456-9989 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| GLOBAL REAL ESTATE SECURITIES (R6) | 9.21% | TIAA TRUST, N.A. AS CUST/TTEE |
|  |  | OF RETIREMENT PLANS |
|  |  | RECORDKEPT BY TIAA |
|  |  | ATTN: FUND OPERATIONS |
|  |  | 8500 ANDREW CARNEGIE BLVD |
|  |  | CHARLOTTE NC 28262-8500 |
| GLOBAL REAL ESTATE SECURITIES (R6) | 7.73% | MAC & CO A/C 681885 |
|  |  | ATTN MUTUAL FUND OPS |
|  |  | 500 GRANT STREET ROOM 151-1010 |
|  |  | PITTSBURGH PA 15219-2502 |
| GLOBAL REAL ESTATE SECURITIES (R6) | 6.44% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | 499 WASHINGTON BLVD |
|  |  | JERSEY CITY NJ 07310-1995 |
| GOVERNMENT & HIGH QUALITY BOND (A) | 19.82% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| GOVERNMENT & HIGH QUALITY BOND (A) | 13.26% | J. P. MORGAN SECURITIES LLC |
|  |  | FBO EXCLUSIVE BENEFIT OF OUR CUST |
|  |  | 4 CHASE METROTECH CTR |
|  |  | BROOKLYN NY 11245-0003 |
| GOVERNMENT & HIGH QUALITY BOND (I) | 42.52% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| GOVERNMENT & HIGH QUALITY BOND (I) | 24.00% | SAM FLEXIBLE INCOME PORTFOLIO PIF |
|  |  | ATTN MUTUAL FUND ACCOUNTING-H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| GOVERNMENT & HIGH QUALITY BOND (I) | 12.87% | SAM BALANCED PORTFOLIO PIF |
|  |  | ATTN MUTUAL FUND ACCOUNTING - H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| GOVERNMENT & HIGH QUALITY BOND (I) | 9.80% | SAM CONS BALANCED PORTFOLIO PIF |
|  |  | ATTN MUTUAL FUND ACCOUNTING-H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| GOVERNMENT & HIGH QUALITY BOND (R3) | 49.62% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| GOVERNMENT & HIGH QUALITY BOND (R3) | 8.10% | ASCENSUS TRUST COMPANY FBO |
|  |  | STRUCTURAL ENGINEERING CENTER INC |
|  |  | 70069 |
|  |  | PO BOX 10758 |
|  |  | FARGO ND 58106-0758 |
| GOVERNMENT & HIGH QUALITY BOND (R3) | 5.58% | USIC |
|  |  | FBO USIC EXEC BENEFIT PLAN |
|  |  | ATTN CARYN HILDRETH |
|  |  | 9045 RIVER RD STE 300 |
|  |  | INDIANAPOLIS IN 46240-6400 |
| GOVERNMENT & HIGH QUALITY BOND (R5) | 40.65% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| GOVERNMENT & HIGH QUALITY BOND (R5) | 22.71% | BANKERS TRUST COMPANY |
|  |  | FBO II-VI, INC DEFERRED |
|  |  | COMPENSATION PLAN |
|  |  | ATTN DEBBIE WILLIAMS |
|  |  | 453 7TH ST |
|  |  | DES MOINES IA 50309-4110 |
| GOVERNMENT & HIGH QUALITY BOND (R5) | 9.53% | PRINCIPAL TRUST COMPANY |
|  |  | FBO CRST INTL NQ PLAN |
|  |  | ATTN SUSAN SAGGIONE |
|  |  | 1013 CENTRE RD |
|  |  | WILMINGTON DE 19805-1265 |
| GOVERNMENT & HIGH QUALITY BOND (R5) | 8.37% | NORTHWEST ADMINISTRATORS |
|  |  | FBO NQ EXCESS OF NW ADMINISTRATORS |
|  |  | ATTN GAYLE BUSHNELL |
|  |  | 2323 EASTLAKE AVE E |
|  |  | SEATTLE WA 98102-3305 |
| GOVERNMENT & HIGH QUALITY BOND (R5) | 7.04% | PRINCIPAL TRUST COMPANY |
|  |  | FBO AMIC DIRECTORS & OFFICERS DC |
|  |  | PLAN |
|  |  | ATTN SUSAN SAGGIONE |
|  |  | 1013 CENTRE RD |
|  |  | WILMINGTON DE 19805-1265 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| GOVERNMENT MONEY MARKET (I) | 100.00% | PRINCIPAL BANK |
|  |  | PO BOX 10370 |
|  |  | DES MOINES IA 50306-0370 |
| GOVERNMENT MONEY MARKET (R6) | 11.70% | PRINCIPAL BANK |
|  |  | PO BOX 10370 |
|  |  | DES MOINES IA 50306-0370 |
| GOVERNMENT MONEY MARKET (R6) | 10.62% | BNY MELLON AS AGENT FOR VARIOUS |
|  |  | PRINCIPAL FUNDS |
|  |  | 500 GRANT ST |
|  |  | PITTSBURGH PA 15219-2502 |
| GOVERNMENT MONEY MARKET (R6) | 7.88% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| GOVERNMENT MONEY MARKET (R6) | 7.09% | LARGECAP S&P 500 INDEX FUND |
|  |  | FBO PGI |
|  |  | ATTN MUTUAL FUND ACCOUNTING H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| HIGH YIELD (A) | 16.25% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| HIGH YIELD (A) | 8.84% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |
| HIGH YIELD (A) | 7.26% | LINCOLN RETIREMENT SERVICES CO |
|  |  | FBO SHARP HEALTHCARE 403B |
|  |  | PO BOX 7876 |
|  |  | FORT WAYNE IN 46801-7876 |
| HIGH YIELD (A) | 6.55% | MLPF&S FOR THE SOLE |
|  |  | BENEFIT OF ITS CUSTOMERS |
|  |  | ATTN FUND ADMINISTRATION |
|  |  | 4800 DEER LAKE DR EAST 3RD FL |
|  |  | JACKSONVILLE FL 32246-6484 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| HIGH YIELD (A) | 5.61% | CHARLES SCHWAB & CO INC |
|  |  | SPECIAL CUSTODY A/C FOR THE |
|  |  | BENIFIT OF CUSTOMERS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 101 MONTGOMERY ST |
|  |  | SAN FRANCISCO CA 94104-4141 |
| HIGH YIELD (C) | 21.47% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |
| HIGH YIELD (C) | 19.61% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| HIGH YIELD (C) | 14.41% | LPL FINANCIAL |
|  |  | OMNIBUS CUSTOMER ACCOUNT |
|  |  | ATTN MUTUAL FUND TRADING |
|  |  | 4707 EXECUTIVE DR |
|  |  | SAN DIEGO CA 92121-3091 |
| HIGH YIELD (C) | 6.51% | RAYMOND JAMES |
|  |  | OMNIBUS FOR MUTUAL FUNDS |
|  |  | HOUSE ACCT FIRM XXXXXXXX |
|  |  | ATTN: COURTNEY WALLER |
|  |  | 880 CARILLON PKWY |
|  |  | ST PETERSBURG FL 33716-1102 |
| HIGH YIELD (C) | 5.53% | CHARLES SCHWAB & CO INC |
|  |  | FBO SPECIAL CUSTODY ACCOUNTS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 211 MAIN ST |
|  |  | SAN FRANCISCO CA 94105-1901 |
| HIGH YIELD (I) | 30.56% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |
| HIGH YIELD (I) | 20.82% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| HIGH YIELD (I) | 8.41% | PERSHING LLC |
|  |  | 1 PERSHING PLZ |
|  |  | JERSEY CITY NJ 07399-0001 |
| HIGH YIELD (I) | 7.99% | LPL FINANCIAL |
|  |  | OMNIBUS CUSTOMER ACCOUNT |
|  |  | ATTN MUTUAL FUND TRADING |
|  |  | 4707 EXECUTIVE DR |
|  |  | SAN DIEGO CA 92121-3091 |
| HIGH YIELD (I) | 6.46% | CHARLES SCHWAB & CO INC |
|  |  | SPECIAL CUSTODY A/C FOR THE |
|  |  | BENIFIT OF CUSTOMERS |
|  |  | 101 MONTGOMERY ST |
|  |  | SAN FRANCISCO CA 94104-4141 |
| HIGH YIELD (I) | 6.36% | AMERICAN ENTERPRISE INVESTMENT SVC |
|  |  | FBO #XXXXXXXX |
|  |  | 707 2ND AVE S |
|  |  | MINNEAPOLIS MN 55402-2405 |
| HIGH YIELD (R6) | 49.85% | PRINCIPAL GLOBAL INVESTORS TRUST CO |
|  |  | PRINCIPAL LIFETIME HYBRID |
|  |  | COLLECTIVE INVESTMENT FUNDS |
|  |  | 1300 SW 5TH AVE STE 3300 |
|  |  | PORTLAND OR 97201-5640 |
| HIGH YIELD (R6) | 9.08% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| INFLATION PROTECTION (I) | 43.22% | PRINCIPAL GLOBAL INVESTORS TRUST CO |
|  |  | PRINCIPAL LIFETIME HYBRID |
|  |  | COLLECTIVE INVESTMENT FUNDS |
|  |  | 1300 SW 5TH AVE STE 3300 |
|  |  | PORTLAND OR 97201-5640 |
| INFLATION PROTECTION (I) | 8.46% | LIFETIME 2030 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING- H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| INFLATION PROTECTION (I) | 8.45% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| INFLATION PROTECTION (I) | 5.14% | SAM BALANCED PORTFOLIO PIF |
|  |  | ATTN MUTUAL FUND ACCOUNTING - H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| INFLATION PROTECTION (R3) | 50.09% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| INFLATION PROTECTION (R3) | 41.91% | DSL CONSTRUCTION CORP |
|  |  | FBO EXEC NQ EXCESS OF DSL |
|  |  | CONSTRUCTION |
|  |  | ATTN PLAN TRUSTEE |
|  |  | 11300 W OLYMPIC BLVD STE 770 |
|  |  | LOS ANGELES CA 90064-1644 |
| INFLATION PROTECTION (R5) | 81.18% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| INTERNATIONAL EQUITY (I) | 36.06% | PRINCIPAL GLOBAL INVESTORS LLC |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| INTERNATIONAL EQUITY (I) | 10.62% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| INTERNATIONAL EQUITY (I) | 6.43% | VANGUARD BROKERAGE SERVICES |
|  |  | 100 VANGUARD BLVD |
|  |  | MALVERN PA 19355-2331 |
| INTERNATIONAL EQUITY (I) | 5.90% | J. P. MORGAN SECURITIES LLC |
|  |  | FBO EXCLUSIVE BENEFIT OF OUR CUST |
|  |  | 4 CHASE METROTECH CTR |
|  |  | BROOKLYN NY 11245-0003 |
| INTERNATIONAL EQUITY (I) | 5.87% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| INTERNATIONAL EQUITY (I) | 5.50% | PRINCIPAL TRUST COMPANY |
|  |  | FBO PROASSURANCE GRP SVC CORP NQ EX |
|  |  | CESS |
|  |  | ATTN SUSAN SAGGIONE |
|  |  | 1013 CENTRE RD |
|  |  | WILMINGTON DE 19805-1265 |
| INTERNATIONAL EQUITY (R3) | 89.22% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| INTERNATIONAL EQUITY (R3) | 5.54% | STRATACOR |
|  |  | FBO STRATACOR 457B |
|  |  | ATTN TAMERA ROBINSON |
|  |  | 500 WASHINGTON AVE SOUTH |
|  |  | MINNEAPOLIS MN 55415-1149 |
| INTERNATIONAL EQUITY (R5) | 90.44% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| INTERNATIONAL EQUITY (R5) | 5.76% | SIOUX CENTER HEALTH 457B & 457F |
|  |  | FBO SIOUX CENTER HEALTH 457B & 457F |
|  |  | ATTN PLAN TRUSTEE |
|  |  | 1101 9TH ST SE |
|  |  | SIOUX CENTER IA 51250-2501 |
| INTERNATIONAL EQUITY (R6) | 13.95% | LIFETIME 2040 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING-H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| INTERNATIONAL EQUITY (R6) | 12.21% | LIFETIME 2050 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING-H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| INTERNATIONAL EQUITY (R6) | 11.19% | LIFETIME 2030 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING- H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| INTERNATIONAL EQUITY (R6) | 10.06% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| INTERNATIONAL EQUITY (R6) | 5.83% | LIFETIME 2045 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING- H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| INTERNATIONAL EQUITY (R6) | 5.09% | LIFETIME 2035 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING- H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| LARGECAP GROWTH I (A) | 13.83% | J. P. MORGAN SECURITIES LLC |
|  |  | FBO EXCLUSIVE BENEFIT OF OUR CUST |
|  |  | 4 CHASE METROTECH CTR |
|  |  | BROOKLYN NY 11245-0003 |
| LARGECAP GROWTH I (A) | 8.42% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| LARGECAP GROWTH I (I) | 38.54% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| LARGECAP GROWTH I (I) | 18.63% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| LARGECAP GROWTH I (I) | 7.71% | CHARLES SCHWAB & CO INC |
|  |  | SPECIAL CUSTODY A/C FBO CUSTOMERS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 101 MONTGOMERY ST |
|  |  | SAN FRANCISCO CA 94104-4141 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| LARGECAP GROWTH I (R3) | 77.61% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| LARGECAP GROWTH I (R3) | 6.27% | DSL CONSTRUCTION CORP |
|  |  | FBO EXEC NQ EXCESS OF DSL |
|  |  | CONSTRUCTION |
|  |  | ATTN PLAN TRUSTEE |
|  |  | 11300 W OLYMPIC BLVD STE 770 |
|  |  | LOS ANGELES CA 90064-1644 |
| LARGECAP GROWTH I (R5) | 81.97% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| LARGECAP GROWTH I (R6) | 63.31% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| LARGECAP GROWTH I (R6) | 6.52% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | OMNIBUS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| LARGECAP S&P 500 INDEX (A) | 20.99% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| LARGECAP S&P 500 INDEX (I) | 10.28% | LIFETIME 2040 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING-H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| LARGECAP S&P 500 INDEX (I) | 9.00% | LIFETIME 2050 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING-H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| LARGECAP S&P 500 INDEX (I) | 8.27% | LIFETIME 2030 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING- H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| LARGECAP S&P 500 INDEX (I) | 5.69% | LIFETIME HYBRID 2040 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| LARGECAP S&P 500 INDEX (R3) | 55.51% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| LARGECAP S&P 500 INDEX (R5) | 63.60% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| LARGECAP VALUE III (I) | 11.82% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| LARGECAP VALUE III (I) | 10.64% | LIFETIME 2040 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING-H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| LARGECAP VALUE III (I) | 9.32% | LIFETIME 2050 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING-H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| LARGECAP VALUE III (I) | 8.51% | LIFETIME 2030 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING- H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| LARGECAP VALUE III (I) | 8.17% | SAM CONS GROWTH PORTFOLIO PIF |
|  |  | ATTN MUTUAL FUND ACCOUNTING-H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| LARGECAP VALUE III (I) | 7.44% | SAM BALANCED PORTFOLIO PIF |
|  |  | ATTN MUTUAL FUND ACCOUNTING - H221 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| | | 711 HIGH ST |
| | | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| LARGECAP VALUE III (I) | 6.75% | SAM STRATEGIC GROWTH PORTFOLIO PIF |
|  |  | ATTN MUTUAL FUND ACCOUNTING-H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| LARGECAP VALUE III (I) | 5.72% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| LARGECAP VALUE III (R3) | 86.01% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| LARGECAP VALUE III (R5) | 29.49% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| LARGECAP VALUE III (R5) | 22.33% | MATRIX TRUST COMPANY TRUSTEE FBO |
|  |  | SOUTHWEST SCHOOL CORPORATION |
|  |  | RETIREE FUNDED HRA PLAN |
|  |  | 717 17TH STREET SUITE 1300 |
|  |  | DENVER CO 80202-3304 |
| LARGECAP VALUE III (R5) | 15.72% | PRINCIPAL TRUST COMPANY |
|  |  | FBO EDINA REALTY WEALTH ENHANCEMENT |
|  |  | PLAN |
|  |  | ATTN PLAN TRUSTEE |
|  |  | 1013 CENTRE RD |
|  |  | WILMINGTON DE 19805-1265 |
| LARGECAP VALUE III (R5) | 7.92% | PRINCIPAL TRUST COMPANY |
|  |  | FBO CRST INTL NQ PLAN |
|  |  | ATTN SUSAN SAGGIONE |
|  |  | 1013 CENTRE RD |
|  |  | WILMINGTON DE 19805-1265 |
| MIDCAP (A) | 16.70% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| MIDCAP (A) | 6.49% | CHARLES SCHWAB & CO INC |
|  |  | SPECIAL CUSTODY ACCOUNT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMERS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 101 MONTGOMERY ST |
|  |  | SAN FRANCISCO CA 94104-4141 |
| MIDCAP (A) | 5.15% | MLPF&S FOR THE SOLE |
|  |  | BENEFIT OF ITS CUSTOMERS |
|  |  | ATTN FUND ADMINISTRATION |
|  |  | 4800 DEER LAKE DR E FL 3 |
|  |  | JACKSONVILLE FL 32246-6484 |
| MIDCAP (C) | 44.83% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| MIDCAP (C) | 5.99% | CHARLES SCHWAB & CO INC |
|  |  | FBO SPECIAL CUSTODY ACCOUNTS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 211 MAIN ST |
|  |  | SAN FRANCISCO CA 94105-1901 |
| MIDCAP (C) | 5.07% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |
| MIDCAP (I) | 16.78% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |
| MIDCAP (I) | 12.99% | MORGAN STANLEY SMITH BARNEY LLC |
|  |  | FOR THE EXCLUSIVE BENE OF ITS CUST |
|  |  | 1 NEW YORK PLZ FL 12 |
|  |  | NEW YORK NY 10004-1965 |
| MIDCAP (I) | 12.62% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| MIDCAP (I) | 9.74% | RAYMOND JAMES |
|  |  | OMNIBUS FOR MUTUAL FUNDS |
|  |  | HOUSE ACCT FIRM XXXXXXXX |
|  |  | ATTN: COURTNEY WALLER |
|  |  | 880 CARILLON PKWY |
|  |  | ST PETERSBURG FL 33716-1102 |
| MIDCAP (I) | 9.07% | CHARLES SCHWAB & CO INC |
|  |  | SPECIAL CUSTODY A/C FOR THE |
|  |  | BENIFIT OF CUSTOMERS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 101 MONTGOMERY ST |
|  |  | SAN FRANCISCO CA 94104-4141 |
| MIDCAP (I) | 6.45% | LPL FINANCIAL |
|  |  | OMNIBUS CUSTOMER ACCOUNT |
|  |  | ATTN MUTUAL FUND TRADING |
|  |  | 4707 EXECUTIVE DR |
|  |  | SAN DIEGO CA 92121-3091 |
| MIDCAP (I) | 5.98% | MLPF&S FOR THE SOLE |
|  |  | BENEFIT OF ITS CUSTOMERS |
|  |  | ATTN FUND ADMINISTRATION |
|  |  | 4800 DEER LAKE DR E FL 3 |
|  |  | JACKSONVILLE FL 32246-6484 |
| MIDCAP (I) | 5.91% | AMERICAN ENTERPRISE INVESTMENT SVC |
|  |  | FBO #XXXXXXXX |
|  |  | 707 2ND AVE S |
|  |  | MINNEAPOLIS MN 55402-2405 |
| MIDCAP (R3) | 58.62% | VOYA INSTITUTIONAL TRUST COMPANY |
|  |  | 1 ORANGE WAY |
|  |  | WINDSOR CT 06095-4773 |
| MIDCAP (R3) | 12.66% | STATE STREET BANK AND TRUST COMPANY |
|  |  | TRUSTEE AND/OR CUSTODIAN |
|  |  | FBO ADP ACCESS PRODUCT |
|  |  | 1 LINCOLN ST |
|  |  | BOSTON MA 02111-2901 |
| MIDCAP (R3) | 9.05% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| MIDCAP (R3) | 5.26% | SAMMONS INSTITUTIONAL GROUP |
|  |  | 8300 MILLS CIVIC PKWY |
|  |  | WDM IA 50266-3833 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| MIDCAP (R5) | 23.43% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| MIDCAP (R5) | 9.86% | TIAA TRUST, N.A. AS CUST/TTEE |
|  |  | OF RETIREMENT PLANS |
|  |  | RECORDKEPT BY TIAA |
|  |  | ATTN: FUND OPERATIONS |
|  |  | 8500 ANDREW CARNEGIE BLVD |
|  |  | CHARLOTTE NC 28262-8500 |
| MIDCAP (R5) | 7.19% | CHARLES SCHWAB & CO INC |
|  |  | SPECIAL CUSTODY A/C FBO CUSTOMERS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 101 MONTGOMERY ST |
|  |  | SAN FRANCISCO CA 94104-4141 |
| MIDCAP (R5) | 7.13% | JOHN HANCOCK TRUST COMPANY LLC |
|  |  | 200 BERKELEY ST STE 7 |
|  |  | BOSTON MA 02116-5038 |
| MIDCAP (R6) | 37.70% | EDWARD D JONES & CO |
|  |  | FOR THE BENEFIT OF CUSTOMERS |
|  |  | 12555 MANCHESTER RD |
|  |  | SAINT LOUIS MO 63131-3710 |
| MIDCAP (R6) | 13.83% | CHARLES SCHWAB & CO INC |
|  |  | SPECIAL CUSTODY A/C FBO CUSTOMERS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 211 MAIN STREET |
|  |  | SAN FRANCISCO CA 94105-1901 |
| MIDCAP (R6) | 9.31% | MLPF&S FOR THE SOLE |
|  |  | BENEFIT OF ITS CUSTOMERS |
|  |  | ATTN FUND ADMINISTRATION |
|  |  | 4800 DEER LAKE DR E FL 2 |
|  |  | JACKSONVILLE FL 32246-6484 |
| MIDCAP (R6) | 5.71% | WELLS FARGO BANK NA |
|  |  | FBO OMNIBUS CASH CASH |
|  |  | XXXX0 |
|  |  | PO BOX 1533 |
|  |  | MINNEAPOLIS MN 55480-1533 |
| MIDCAP S&P 400 INDEX (I) | 22.32% | CHARLES SCHWAB & CO INC |
|  |  | SPECIAL CUSTODY A/C FBO CUSTOMERS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 211 MAIN STREET |
|  |  | SAN FRANCISCO CA 94105-1901 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| MIDCAP S&P 400 INDEX (I) | 17.40% | LPL FINANCIAL |
|  |  | OMNIBUS CUSTOMER ACCOUNT |
|  |  | ATTN MUTUAL FUND TRADING |
|  |  | 4707 EXECUTIVE DR |
|  |  | SAN DIEGO CA 92121-3091 |
| MIDCAP S&P 400 INDEX (I) | 8.87% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| MIDCAP S&P 400 INDEX (I) | 5.94% | PERSHING LLC |
|  |  | 1 PERSHING PLZ |
|  |  | JERSEY CITY NJ 07399-0001 |
| MIDCAP S&P 400 INDEX (I) | 5.64% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| MIDCAP S&P 400 INDEX (I) | 5.59% | STATE STREET BANK AND TRUST COMPANY |
|  |  | TRUSTEE AND/OR CUSTODIAN |
|  |  | FBO ADP ACCESS PRODUCT |
|  |  | 1 LINCOLN ST |
|  |  | BOSTON MA 02111-2901 |
| MIDCAP S&P 400 INDEX (R3) | 38.17% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| MIDCAP S&P 400 INDEX (R3) | 7.89% | BENEFIT TRUST COMPANY AS CUSTODIAN |
|  |  | FOR HILLSBOROUGH COUNTY PUBLIC |
|  |  | SCHOOLS 403B |
|  |  | PO BOX 12765 |
|  |  | OVERLAND PARK KS 66282-2765 |
| MIDCAP S&P 400 INDEX (R5) | 42.65% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| MIDCAP S&P 400 INDEX (R5) | 8.34% | VOYA INSTITUTIONAL TRUST COMPANY |
|  |  | 1 ORANGE WAY |
|  |  | WINDSOR CT 06095-4773 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| MIDCAP S&P 400 INDEX (R5) | 5.18% | EMPOWER TRUST FBO |
|  |  | ANNE ARUNDEL MEDICAL CENTER EMP SAL |
|  |  | C/O FASCORE LLC |
|  |  | 8515 E ORCHARD RD 2T2 |
|  |  | GREENWOOD VILLAGE CO 80111-5002 |
| MIDCAP S&P 400 INDEX (R6) | 13.49% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | OMNIBUS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| MIDCAP S&P 400 INDEX (R6) | 13.36% | DIVERSIFIED GROWTH ACCOUNT |
|  |  | ATTN MUTUAL FUND ACCOUNTING H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| MIDCAP S&P 400 INDEX (R6) | 10.54% | DIVERSIFIED GROWTH ADAPTIVE |
|  |  | ALLOCATION ACCOUNT |
|  |  | ATTN MUTUAL FUND ACCOUNTING H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| MIDCAP S&P 400 INDEX (R6) | 7.19% | LIFETIME HYBRID 2040 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| MIDCAP S&P 400 INDEX (R6) | 6.08% | LIFETIME HYBRID 2030 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| MIDCAP VALUE I (A) | 18.86% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| MIDCAP VALUE I (I) | 73.35% | PERSHING LLC |
|  |  | 1 PERSHING PLZ |
|  |  | JERSEY CITY NJ 07399-0001 |
| MIDCAP VALUE I (I) | 7.18% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| MIDCAP VALUE I (I) | 6.85% | FIRST COMMAND BANK |
|  |  | PO BOX 901075 |
|  |  | FORT WORTH TX 76101-2075 |
| MIDCAP VALUE I (I) | 5.25% | LPL FINANCIAL |
|  |  | OMNIBUS CUSTOMER ACCOUNT |
|  |  | ATTN MUTUAL FUND TRADING |
|  |  | 4707 EXECUTIVE DR |
|  |  | SAN DIEGO CA 92121-3091 |
| MIDCAP VALUE I (R3) | 83.10% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| MIDCAP VALUE I (R5) | 50.96% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| MIDCAP VALUE I (R5) | 5.77% | COUNSEL TRUST DBA MATC FBO |
|  |  | TRADITION AMERICA HOLDINGS INC. |
|  |  | 1251 WATERFRONT PLACE SUITE 525 |
|  |  | PITTSBURGH PA 15222-4228 |
| MIDCAP VALUE I (R5) | 5.40% | TIAA TRUST, N.A. AS CUST/TTEE |
|  |  | OF RETIREMENT PLANS |
|  |  | RECORDKEPT BY TIAA |
|  |  | ATTN: FUND OPERATIONS |
|  |  | 8500 ANDREW CARNEGIE BLVD |
|  |  | CHARLOTTE NC 28262-8500 |
| MIDCAP VALUE I (R6) | 92.91% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| OVERSEAS (I) | 33.65% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| OVERSEAS (I) | 14.27% | SAM BALANCED PORTFOLIO PIF |
|  |  | ATTN MUTUAL FUND ACCOUNTING - H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| OVERSEAS (I) | 13.95% | SAM CONS GROWTH PORTFOLIO PIF |
|  |  | ATTN MUTUAL FUND ACCOUNTING-H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| OVERSEAS (I) | 12.07% | SAM STRATEGIC GROWTH PORTFOLIO PIF |
|  |  | ATTN MUTUAL FUND ACCOUNTING-H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| OVERSEAS (I) | 11.34% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| OVERSEAS (R3) | 84.38% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| OVERSEAS (R3) | 8.97% | BEHLER-YOUNG COMPANY |
|  |  | FBO BEHLER-YOUNG COMPANY DEF COMP |
|  |  | ATTN PLAN TRUSTEE |
|  |  | 4900 CLYDE PARK AVE SW |
|  |  | GRAND RAPIDS MI 49509-5118 |
| OVERSEAS (R3) | 5.85% | FIIOC |
|  |  | FBO ECONOMETRICA INC 401(K) PROFIT |
|  |  | SHARING PLAN AN |
|  |  | 100 MAGELLAN WAY # KW1C |
|  |  | COVINGTON KY 41015-1987 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| PRINCIPAL CAPITAL APPRECIATION (A) | 33.46% | J. P. MORGAN SECURITIES LLC |
|  |  | FBO EXCLUSIVE BENEFIT OF OUR CUST |
|  |  | 4 CHASE METROTECH CTR |
|  |  | BROOKLYN NY 11245-0003 |
| PRINCIPAL CAPITAL APPRECIATION (A) | 9.38% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| PRINCIPAL CAPITAL APPRECIATION (I) | 23.07% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL CAPITAL APPRECIATION (I) | 13.11% | AMERICAN ENTERPRISE INVESTMENT SVC |
|  |  | FBO #XXXXXXXX |
|  |  | 707 2ND AVE S |
|  |  | MINNEAPOLIS MN 55402-2405 |
| PRINCIPAL CAPITAL APPRECIATION (I) | 12.63% | SAM BALANCED PORTFOLIO PIF |
|  |  | ATTN MUTUAL FUND ACCOUNTING - H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL CAPITAL APPRECIATION (I) | 12.09% | SAM CONS GROWTH PORTFOLIO PIF |
|  |  | ATTN MUTUAL FUND ACCOUNTING-H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL CAPITAL APPRECIATION (I) | 10.27% | SAM STRATEGIC GROWTH PORTFOLIO PIF |
|  |  | ATTN MUTUAL FUND ACCOUNTING-H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL CAPITAL APPRECIATION (R3) | 69.00% | SAMMONS INSTITUTIONAL GROUP |
|  |  | 8300 MILLS CIVIC PKWY |
|  |  | WDM IA 50266-3833 |
| PRINCIPAL CAPITAL APPRECIATION (R3) | 27.35% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| PRINCIPAL CAPITAL APPRECIATION (R5) | 87.32% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2015 (I) | 92.64% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2015 (I) | 6.34% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2015 (R3) | 77.82% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2015 (R3) | 16.23% | DSL CONSTRUCTION CORP |
|  |  | FBO EXEC NQ EXCESS OF DSL |
|  |  | CONSTRUCTION |
|  |  | ATTN PLAN TRUSTEE |
|  |  | 11300 W OLYMPIC BLVD #770 |
|  |  | LOS ANGELES CA 90064-1644 |
| PRINCIPAL LIFETIME 2015 (R5) | 89.35% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2015 (R5) | 7.04% | MAPS CREDIT UNION |
|  |  | ATTN BARBARA CECIL |
|  |  | FBO 457B DEF COMP OF MAPS CU |
|  |  | 1900 HINES STREET NW PO BOX 12398 |
|  |  | SALEM OR 97309-0398 |
| PRINCIPAL LIFETIME 2020 (A) | 16.81% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| PRINCIPAL LIFETIME 2020 (I) | 88.42% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2020 (I) | 7.57% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2020 (R3) | 92.17% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2020 (R5) | 91.86% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2025 (I) | 89.83% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2025 (I) | 8.00% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2025 (R3) | 94.85% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| PRINCIPAL LIFETIME 2025 (R5) | 88.29% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2030 (A) | 16.17% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| PRINCIPAL LIFETIME 2030 (I) | 89.03% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2030 (I) | 7.06% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2030 (R3) | 90.51% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2030 (R5) | 81.70% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2035 (I) | 88.53% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| PRINCIPAL LIFETIME 2035 (I) | 8.63% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2035 (R3) | 95.44% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2035 (R5) | 84.75% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2040 (A) | 13.67% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| PRINCIPAL LIFETIME 2040 (I) | 87.69% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2040 (I) | 8.54% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2040 (R3) | 92.15% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2040 (R5) | 89.00% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| PRINCIPAL LIFETIME 2045 (I) | 84.96% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2045 (I) | 11.93% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2045 (R3) | 98.12% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2045 (R5) | 92.89% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2050 (A) | 12.69% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| PRINCIPAL LIFETIME 2050 (I) | 85.10% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2050 (I) | 11.20% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| PRINCIPAL LIFETIME 2050 (R3) | 95.89% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2050 (R5) | 93.78% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2055 (I) | 82.84% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2055 (I) | 12.41% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2055 (R3) | 98.67% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2055 (R5) | 95.15% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2060 (I) | 86.08% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| PRINCIPAL LIFETIME 2060 (I) | 9.70% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2060 (R3) | 96.14% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2060 (R5) | 91.74% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2065 (I) | 89.58% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2065 (I) | 6.86% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | OMNIBUS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2065 (R3) | 94.01% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | OMNIBUS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2065 (R5) | 90.03% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | OMNIBUS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| PRINCIPAL LIFETIME 2070 (I) | 89.52% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | FUNDS |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2070 (I) | 9.99% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2070 (J) | 13.62% | PRINCIPAL LIFE INSURANCE CO CUST |
|  |  | IRA BENJAMIN D LOGAN |
|  |  | 110 BROADMEADOW DR |
|  |  | GRENADA MS 38901-8684 |
| PRINCIPAL LIFETIME 2070 (J) | 10.12% | PRINCIPAL LIFE INSURANCE CO CUST |
|  |  | IRA JOHN HATHERILL |
|  |  | 14362 PINEWOOD RD |
|  |  | TUSTIN CA 92780-6924 |
| PRINCIPAL LIFETIME 2070 (J) | 8.26% | PRINCIPAL LIFE INSURANCE CO CUST |
|  |  | IRA ANDREW S DECKER |
|  |  | 2675 E CREEKS EDGE DR |
|  |  | BLOOMINGTON IN 47401-8368 |
| PRINCIPAL LIFETIME 2070 (J) | 6.69% | PRINCIPAL LIFE INSURANCE CO CUST |
|  |  | IRA LAURA WHEELER |
|  |  | 128 RED HEAD CV |
|  |  | SAN MARCOS TX 78666-1566 |
| PRINCIPAL LIFETIME 2070 (J) | 5.05% | PRINCIPAL LIFE INSURANCE CO CUST |
|  |  | IRA DAVID FOLEY JR |
|  |  | 302 DEERFIELD DR |
|  |  | CANONSBURG PA 15317-2384 |
| PRINCIPAL LIFETIME 2070 (R3) | 98.09% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME 2070 (R5) | 97.27% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| PRINCIPAL LIFETIME HYBRID 2015 (I) | 73.50% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME HYBRID 2015 (I) | 9.86% | MINNESOTA LIFE INSURANCE COMPANY |
|  |  | 400 ROBERT STREET NORTH |
|  |  | SAINT PAUL MN 55101-2037 |
| PRINCIPAL LIFETIME HYBRID 2015 (I) | 6.11% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| PRINCIPAL LIFETIME HYBRID 2015 (R6) | 90.09% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | OMNIBUS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME HYBRID 2020 (I) | 58.39% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME HYBRID 2020 (I) | 30.14% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| PRINCIPAL LIFETIME HYBRID 2020 (I) | 7.16% | MINNESOTA LIFE INSURANCE COMPANY |
|  |  | 400 ROBERT STREET NORTH |
|  |  | SAINT PAUL MN 55101-2037 |
| PRINCIPAL LIFETIME HYBRID 2020 (R6) | 87.11% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | OMNIBUS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| PRINCIPAL LIFETIME HYBRID 2025 (I) | 66.52% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME HYBRID 2025 (I) | 17.29% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| PRINCIPAL LIFETIME HYBRID 2025 (I) | 6.24% | MINNESOTA LIFE INSURANCE COMPANY |
|  |  | 400 ROBERT STREET NORTH |
|  |  | SAINT PAUL MN 55101-2037 |
| PRINCIPAL LIFETIME HYBRID 2025 (R6) | 88.10% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | OMNIBUS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME HYBRID 2030 (I) | 68.97% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME HYBRID 2030 (I) | 13.47% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| PRINCIPAL LIFETIME HYBRID 2030 (R6) | 82.63% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | OMNIBUS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME HYBRID 2030 (R6) | 6.10% | PRINCIPAL TRUST COMPANY |
|  |  | FBO PRIN SELECT SVNG EXCESS PLAN |
|  |  | FOR EES |
|  |  | ATTN PLAN TRUSTEE |
|  |  | 1013 CENTRE RD STE 300 |
|  |  | WILMINGTON DE 19805-1265 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| PRINCIPAL LIFETIME HYBRID 2035 (I) | 59.31% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME HYBRID 2035 (I) | 24.29% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| PRINCIPAL LIFETIME HYBRID 2035 (I) | 8.13% | MINNESOTA LIFE INSURANCE COMPANY |
|  |  | 400 ROBERT STREET NORTH |
|  |  | SAINT PAUL MN 55101-2037 |
| PRINCIPAL LIFETIME HYBRID 2035 (R6) | 90.80% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | OMNIBUS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME HYBRID 2040 (I) | 63.69% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME HYBRID 2040 (I) | 19.50% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| PRINCIPAL LIFETIME HYBRID 2040 (I) | 5.98% | MINNESOTA LIFE INSURANCE COMPANY |
|  |  | 400 ROBERT STREET NORTH |
|  |  | SAINT PAUL MN 55101-2037 |
| PRINCIPAL LIFETIME HYBRID 2040 (R6) | 84.08% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | OMNIBUS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| PRINCIPAL LIFETIME HYBRID 2040 (R6) | 5.57% | PRINCIPAL TRUST COMPANY |
|  |  | FBO EXEC 457B OF SANFORD HEALTH |
|  |  | ATTN PLAN TRUSTEE |
|  |  | 1013 CENTRE RD |
|  |  | WILMINGTON DE 19805-1265 |
| PRINCIPAL LIFETIME HYBRID 2045 (I) | 63.71% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME HYBRID 2045 (I) | 23.24% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| PRINCIPAL LIFETIME HYBRID 2045 (I) | 6.59% | MINNESOTA LIFE INSURANCE COMPANY |
|  |  | 400 ROBERT STREET NORTH |
|  |  | SAINT PAUL MN 55101-2037 |
| PRINCIPAL LIFETIME HYBRID 2045 (R6) | 93.08% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | OMNIBUS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME HYBRID 2050 (I) | 63.48% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME HYBRID 2050 (I) | 26.25% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| PRINCIPAL LIFETIME HYBRID 2050 (I) | 6.05% | MINNESOTA LIFE INSURANCE COMPANY |
|  |  | 400 ROBERT STREET NORTH |
|  |  | SAINT PAUL MN 55101-2037 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| PRINCIPAL LIFETIME HYBRID 2050 (R6) | 90.33% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | OMNIBUS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME HYBRID 2055 (I) | 68.30% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME HYBRID 2055 (I) | 24.76% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| PRINCIPAL LIFETIME HYBRID 2055 (R6) | 94.87% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | OMNIBUS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME HYBRID 2060 (I) | 66.97% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME HYBRID 2060 (I) | 27.39% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| PRINCIPAL LIFETIME HYBRID 2060 (R6) | 89.99% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | OMNIBUS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME HYBRID 2065 (I) | 72.64% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | OMNIBUS |
|  |  | 711 HIGH STREET |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| | | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| PRINCIPAL LIFETIME HYBRID 2065 (I) | 10.50% | MINNESOTA LIFE INSURANCE COMPANY |
|  |  | 400 ROBERT STREET NORTH |
|  |  | SAINT PAUL MN 55101-2037 |
| PRINCIPAL LIFETIME HYBRID 2065 (I) | 7.98% | PRINCIPAL TRUST COMPANY |
|  |  | FBO MURRAY COMPANY NQ DC PLAN |
|  |  | ATTN PLAN TRUSTEE |
|  |  | 1013 CENTRE RD |
|  |  | WILMINGTON DE 19805-1265 |
| PRINCIPAL LIFETIME HYBRID 2065 (I) | 5.68% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| PRINCIPAL LIFETIME HYBRID 2065 (R6) | 92.00% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | OMNIBUS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME HYBRID 2070 (I) | 78.17% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME HYBRID 2070 (I) | 20.66% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| PRINCIPAL LIFETIME HYBRID 2070 (J) | 8.06% | PRINCIPAL LIFE INSURANCE CO |
|  |  | IRA (DCD) LAURA ASCHEMAN |
|  |  | FBO CHAD HOBBIEBRUNKEN |
|  |  | 8108 HAMMONTREE CIR |
|  |  | URBANDALE IA 50322-1507 |
| PRINCIPAL LIFETIME HYBRID 2070 (J) | 7.43% | PRINCIPAL LIFE INSURANCE CO CUST |
|  |  | IRA ROBERT S ARCHER |
|  |  | 99 CIRCLE DR E |
|  |  | MONTGOMERY IL 60538-2341 |
| PRINCIPAL LIFETIME HYBRID 2070 (J) | 6.44% | PRINCIPAL LIFE INSURANCE CO CUST |
|  |  | IRA SHAUN A DAY |
|  |  | 260 ROYAL LYTHAN CIR |
|  |  | LEXINGTON SC 29072-7105 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| PRINCIPAL LIFETIME HYBRID 2070 (J) | 5.93% | PRINCIPAL LIFE INSURANCE CO CUST |
|  |  | IRA DARRIN A LINSENBARDT |
|  |  | 7040 W OLIVE AVE UNIT 54 |
|  |  | PEORIA AZ 85345-8884 |
| PRINCIPAL LIFETIME HYBRID 2070 (J) | 5.57% | PRINCIPAL LIFE INSURANCE CO CUST |
|  |  | IRA AFROZE ASHRAF |
|  |  | 4718 JAYMAR DR |
|  |  | SUGAR LAND TX 77479-5232 |
| PRINCIPAL LIFETIME HYBRID 2070 (J) | 5.31% | PRINCIPAL LIFE INSURANCE CO CUST |
|  |  | IRA PAUL SHEA |
|  |  | 4022 KYRO RD SE |
|  |  | LACEY WA 98503-4611 |
| PRINCIPAL LIFETIME HYBRID 2070 (J) | 5.05% | PRINCIPAL LIFE INSURANCE CO CUST |
|  |  | IRA RONALD K ELLIS |
|  |  | 3109 W CALAVAR RD |
|  |  | PHOENIX AZ 85053-5715 |
| PRINCIPAL LIFETIME HYBRID 2070 (R6) | 74.76% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME HYBRID 2070 (R6) | 10.25% | PRINCIPAL TRUST COMPANY |
|  |  | FBO PRIN SELECT SVNG EXCPLAN INDV |
|  |  | FIELD |
|  |  | ATTN PLAN TRUSTEE |
|  |  | 1013 CENTRE RD STE 300 |
|  |  | WILMINGTON DE 19805-1265 |
| PRINCIPAL LIFETIME HYBRID 2070 (R6) | 10.11% | PRINCIPAL TRUST COMPANY |
|  |  | FBO PRIN SELECT SVNG EXCESS PLAN |
|  |  | FOR EES |
|  |  | ATTN PLAN TRUSTEE |
|  |  | 1013 CENTRE RD STE 300 |
|  |  | WILMINGTON DE 19805-1265 |
| PRINCIPAL LIFETIME HYBRID INCOME (I) | 61.63% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| PRINCIPAL LIFETIME HYBRID INCOME (I) | 16.19% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| PRINCIPAL LIFETIME HYBRID INCOME (I) | 9.83% | PRINCIPAL TRUST COMPANY |
|  |  | FBO FBL FINANCIAL GROUP DEF COMP |
|  |  | ATTN SUSAN SAGGIONE |
|  |  | PLAN |
|  |  | 1013 CENTRE RD |
|  |  | WILMINGTON DE 19805-1265 |
| PRINCIPAL LIFETIME HYBRID INCOME (R6) | 72.17% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | OMNIBUS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME HYBRID INCOME (R6) | 6.71% | RELIANCE TRUST COMPANY FBO |
|  |  | T ROWE PRICE RETIREMENT PLAN SVCS |
|  |  | INC |
|  |  | PO BOX 78446 |
|  |  | ATLANTA GA 30357 |
| PRINCIPAL LIFETIME HYBRID INCOME (R6) | 6.24% | PRINCIPAL TRUST COMPANY |
|  |  | FBO PRIN SELECT SVNG EXCESS PLAN |
|  |  | FOR EES |
|  |  | ATTN PLAN TRUSTEE |
|  |  | 1013 CENTRE RD STE 300 |
|  |  | WILMINGTON DE 19805-1265 |
| PRINCIPAL LIFETIME STRATEGIC INC (A) | 17.39% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| PRINCIPAL LIFETIME STRATEGIC INC (A) | 5.37% | LPL FINANCIAL |
|  |  | OMNIBUS CUSTOMER ACCOUNT |
|  |  | ATTN MUTUAL FUND TRADING |
|  |  | 4707 EXECUTIVE DR |
|  |  | SAN DIEGO CA 92121-3091 |
| PRINCIPAL LIFETIME STRATEGIC INC (I) | 88.03% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| PRINCIPAL LIFETIME STRATEGIC INC (I) | 5.93% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME STRATEGIC INC (R3) | 79.27% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| PRINCIPAL LIFETIME STRATEGIC INC (R3) | 8.16% | SMP HEALTH SYSTEM |
|  |  | FBO EXEC NQ EXCESS OF SMP HEALTH |
|  |  | ATTN PLAN TRUSTEE |
|  |  | 1202 PAGE DRIVE PO BOX 10007 |
|  |  | FARGO ND 58106-0007 |
| PRINCIPAL LIFETIME STRATEGIC INC (R5) | 79.57% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| REAL ESTATE SECURITIES (A) | 14.54% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| REAL ESTATE SECURITIES (A) | 9.77% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |
| REAL ESTATE SECURITIES (A) | 7.16% | MORGAN STANLEY SMITH BARNEY LLC |
|  |  | FOR THE EXCLUSIVE BENE OF ITS CUST |
|  |  | 1 NEW YORK PLZ FL 12 |
|  |  | NEW YORK NY 10004-1965 |
| REAL ESTATE SECURITIES (A) | 5.39% | PERSHING LLC |
|  |  | 1 PERSHING PLZ |
|  |  | JERSEY CITY NJ 07399-0001 |
| REAL ESTATE SECURITIES (C) | 23.28% | MORGAN STANLEY SMITH BARNEY LLC |
|  |  | FOR THE EXCLUSIVE BENE OF ITS CUST |
|  |  | 1 NEW YORK PLZ FL 12 |
|  |  | NEW YORK NY 10004-1965 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| REAL ESTATE SECURITIES (C) | 22.80% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |
| REAL ESTATE SECURITIES (C) | 12.07% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| REAL ESTATE SECURITIES (C) | 6.77% | PERSHING LLC |
|  |  | 1 PERSHING PLZ |
|  |  | JERSEY CITY NJ 07399-0001 |
| REAL ESTATE SECURITIES (C) | 5.82% | RAYMOND JAMES |
|  |  | OMNIBUS FOR MUTUAL FUNDS |
|  |  | HOUSE ACCT FIRM XXXXXXXX |
|  |  | ATTN: COURTNEY WALLER |
|  |  | 880 CARILLON PKWY |
|  |  | ST PETERSBURG FL 33716-1102 |
| REAL ESTATE SECURITIES (I) | 32.74% | PERSHING LLC |
|  |  | 1 PERSHING PLZ |
|  |  | JERSEY CITY NJ 07399-0001 |
| REAL ESTATE SECURITIES (I) | 20.28% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| REAL ESTATE SECURITIES (I) | 12.59% | CHARLES SCHWAB & CO INC |
|  |  | SPECIAL CUSTODY A/C FOR THE |
|  |  | BENIFIT OF CUSTOMERS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 101 MONTGOMERY ST |
|  |  | SAN FRANCISCO CA 94104-4141 |
| REAL ESTATE SECURITIES (I) | 5.25% | MORGAN STANLEY SMITH BARNEY LLC |
|  |  | FOR THE EXCLUSIVE BENE OF ITS CUST |
|  |  | 1 NEW YORK PLZ FL 12 |
|  |  | NEW YORK NY 10004-1965 |
| REAL ESTATE SECURITIES (I) | 5.02% | AMERICAN ENTERPRISE INVESTMENT SVC |
|  |  | FBO #XXXXXXXX |
|  |  | 707 2ND AVE S |
|  |  | MINNEAPOLIS MN 55402-2405 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| REAL ESTATE SECURITIES (R3) | 20.98% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| REAL ESTATE SECURITIES (R3) | 19.61% | STATE STREET BANK AND TRUST COMPANY |
|  |  | TRUSTEE AND/OR CUSTODIAN |
|  |  | FBO ADP ACCESS PRODUCT |
|  |  | 1 LINCOLN ST |
|  |  | BOSTON MA 02111-2901 |
| REAL ESTATE SECURITIES (R3) | 13.97% | SAMMONS INSTITUTIONAL GROUP |
|  |  | 8300 MILLS CIVIC PKWY |
|  |  | WDM IA 50266-3833 |
| REAL ESTATE SECURITIES (R5) | 37.32% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| REAL ESTATE SECURITIES (R5) | 15.02% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| REAL ESTATE SECURITIES (R5) | 6.53% | TIAA TRUST, N.A. AS CUST/TTEE |
|  |  | OF RETIREMENT PLANS |
|  |  | RECORDKEPT BY TIAA |
|  |  | ATTN: FUND OPERATIONS |
|  |  | 8500 ANDREW CARNEGIE BLVD |
|  |  | CHARLOTTE NC 28262-8500 |
| REAL ESTATE SECURITIES (R6) | 20.27% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| REAL ESTATE SECURITIES (R6) | 7.50% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | 499 WASHINGTON BLVD |
|  |  | JERSEY CITY NJ 07310-1995 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| SAM BALANCED PORTFOLIO (A) | 17.15% | J. P. MORGAN SECURITIES LLC |
|  |  | FBO EXCLUSIVE BENEFIT OF OUR CUST |
|  |  | 4 CHASE METROTECH CTR |
|  |  | BROOKLYN NY 11245-0003 |
| SAM BALANCED PORTFOLIO (A) | 15.69% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| SAM BALANCED PORTFOLIO (A) | 5.50% | LPL FINANCIAL |
|  |  | OMNIBUS CUSTOMER ACCOUNT |
|  |  | ATTN MUTUAL FUND TRADING |
|  |  | 4707 EXECUTIVE DR |
|  |  | SAN DIEGO CA 92121-3091 |
| SAM BALANCED PORTFOLIO (C) | 23.93% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| SAM BALANCED PORTFOLIO (C) | 15.02% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |
| SAM BALANCED PORTFOLIO (C) | 5.65% | LPL FINANCIAL |
|  |  | OMNIBUS CUSTOMER ACCOUNT |
|  |  | ATTN MUTUAL FUND TRADING |
|  |  | 4707 EXECUTIVE DR |
|  |  | SAN DIEGO CA 92121-3091 |
| SAM BALANCED PORTFOLIO (I) | 80.06% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| SAM BALANCED PORTFOLIO (R3) | 77.89% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SAM BALANCED PORTFOLIO (R3) | 7.51% | CBNA AS CUSTODIAN FBO |
|  |  | CITY OF OCOEE VEBA HEALTH SAVINGS P |
|  |  | 6 RHOADS DR STE 7 |
|  |  | UTICA NY 13502-6317 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| SAM BALANCED PORTFOLIO (R3) | 7.06% | PRINCIPAL TRUST COMPANY |
|  |  | FBO SPINDLETOP OIL & GAS CO DEF |
|  |  | COMP PLAN |
|  |  | ATTN PLAN TRUSTEE |
|  |  | 1013 CENTRE RD |
|  |  | WILMINGTON DE 19805-1265 |
| SAM BALANCED PORTFOLIO (R5) | 75.59% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SAM BALANCED PORTFOLIO (R5) | 14.04% | MATRIX TRUST CO AS AGENT FBO |
|  |  | PRO-SET INC FINANCIAL SECURITY TRUS |
|  |  | PO BOX 52129 |
|  |  | PHOENIX AZ 85072-2129 |
| SAM CONSERVATIVE BALANCED PORT (A) | 17.97% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| SAM CONSERVATIVE BALANCED PORT (A) | 7.19% | J. P. MORGAN SECURITIES LLC |
|  |  | FBO EXCLUSIVE BENEFIT OF OUR CUST |
|  |  | 4 CHASE METROTECH CTR |
|  |  | BROOKLYN NY 11245-0003 |
| SAM CONSERVATIVE BALANCED PORT (C) | 22.25% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| SAM CONSERVATIVE BALANCED PORT (C) | 18.50% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |
| SAM CONSERVATIVE BALANCED PORT (C) | 6.31% | LPL FINANCIAL |
|  |  | OMNIBUS CUSTOMER ACCOUNT |
|  |  | ATTN MUTUAL FUND TRADING |
|  |  | 4707 EXECUTIVE DR |
|  |  | SAN DIEGO CA 92121-3091 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| SAM CONSERVATIVE BALANCED PORT (I) | 79.80% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| SAM CONSERVATIVE BALANCED PORT (R3) | 60.70% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SAM CONSERVATIVE BALANCED PORT (R3) | 20.18% | PRINCIPAL TRUST COMPANY |
|  |  | FBO KIDS UNLIMITED OF OREGON 457F PLAN |
|  |  | ATTN PLAN TRUSTEE |
|  |  | 1013 CENTRE RD |
|  |  | WILMINGTON DE 19805-1265 |
| SAM CONSERVATIVE BALANCED PORT (R3) | 6.60% | PRINCIPAL TRUST COMPANY |
|  |  | FBO DANCKER, SELLEW & DOUGLAS INC |
|  |  | SUPP EXEC RET PLAN |
|  |  | ATTN PLAN TRUSTEE |
|  |  | 1013 CENTRE RD |
|  |  | WILMINGTON DE 19805-1265 |
| SAM CONSERVATIVE BALANCED PORT (R5) | 64.33% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SAM CONSERVATIVE BALANCED PORT (R5) | 18.95% | PRINCIPAL TRUST COMPANY |
|  |  | FBO B&G AND AFFILIATES EXEC RET PLAN |
|  |  | ATTN SUSAN SAGGIONE |
|  |  | 1013 CENTRE RD |
|  |  | WILMINGTON DE 19805-1265 |
| SAM CONSERVATIVE BALANCED PORT (R5) | 6.82% | KGP TELECOMMUNICATIONS LLC |
|  |  | ATTN PLAN TRUSTEE |
|  |  | FBO KGPCO PHANTOM UNITS PLAN |
|  |  | 3305 HIGHWAY 60 WEST |
|  |  | FAIRBAULT MN 55021-4869 |
| SAM CONSERVATIVE GROWTH PORT (A) | 12.71% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| SAM CONSERVATIVE GROWTH PORT (A) | 11.39% | J. P. MORGAN SECURITIES LLC |
|  |  | FBO EXCLUSIVE BENEFIT OF OUR CUST |
|  |  | 4 CHASE METROTECH CTR |
|  |  | BROOKLYN NY 11245-0003 |
| SAM CONSERVATIVE GROWTH PORT (C) | 19.16% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| SAM CONSERVATIVE GROWTH PORT (C) | 8.18% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |
| SAM CONSERVATIVE GROWTH PORT (I) | 77.35% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| SAM CONSERVATIVE GROWTH PORT (R3) | 76.44% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SAM CONSERVATIVE GROWTH PORT (R5) | 88.55% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SAM FLEXIBLE INCOME PORTFOLIO (A) | 23.01% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| SAM FLEXIBLE INCOME PORTFOLIO (A) | 8.31% | J. P. MORGAN SECURITIES LLC |
|  |  | FBO EXCLUSIVE BENEFIT OF OUR CUST |
|  |  | 4 CHASE METROTECH CTR |
|  |  | BROOKLYN NY 11245-0003 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| SAM FLEXIBLE INCOME PORTFOLIO (C) | 33.03% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| SAM FLEXIBLE INCOME PORTFOLIO (C) | 8.35% | LPL FINANCIAL |
|  |  | OMNIBUS CUSTOMER ACCOUNT |
|  |  | ATTN MUTUAL FUND TRADING |
|  |  | 4707 EXECUTIVE DR |
|  |  | SAN DIEGO CA 92121-3091 |
| SAM FLEXIBLE INCOME PORTFOLIO (C) | 6.33% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |
| SAM FLEXIBLE INCOME PORTFOLIO (I) | 61.26% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| SAM FLEXIBLE INCOME PORTFOLIO (I) | 11.84% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| SAM FLEXIBLE INCOME PORTFOLIO (I) | 6.99% | LPL FINANCIAL |
|  |  | OMNIBUS CUSTOMER ACCOUNT |
|  |  | ATTN MUTUAL FUND TRADING |
|  |  | 4707 EXECUTIVE DR |
|  |  | SAN DIEGO CA 92121-3091 |
| SAM FLEXIBLE INCOME PORTFOLIO (I) | 5.87% | RAYMOND JAMES |
|  |  | OMNIBUS FOR MUTUAL FUNDS |
|  |  | HOUSE ACCT FIRM XXXXXXXX |
|  |  | ATTN: COURTNEY WALLER |
|  |  | 880 CARILLON PKWY |
|  |  | ST PETERSBURG FL 33716-1102 |
| SAM FLEXIBLE INCOME PORTFOLIO (I) | 5.72% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| SAM FLEXIBLE INCOME PORTFOLIO (R3) | 71.66% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SAM FLEXIBLE INCOME PORTFOLIO (R3) | 18.13% | MID ATLANTIC TRUST COMPANY FBO |
|  |  | BUFFALO ULTRASOUND INC 401 K |
|  |  | PROFIT SHARING PLAN & TRUST |
|  |  | 1251 WATERFRONT PLACE SUITE 525 |
|  |  | PITTSBURGH PA 15222-4228 |
| SAM FLEXIBLE INCOME PORTFOLIO (R5) | 76.52% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SAM FLEXIBLE INCOME PORTFOLIO (R5) | 10.82% | BRISTOL BAY NATIVE CORPORATION |
|  |  | ATTN PLAN TRUSTEE |
|  |  | FBO BBNC NQ DEF COMP PLAN |
|  |  | 111 W 16TH AVE |
|  |  | ANCHORAGE AK 99501-6299 |
| SAM FLEXIBLE INCOME PORTFOLIO (R5) | 5.70% | ASCENSUS TRUST COMPANY FBO |
|  |  | BAIRD FUNERAL HOME 401(K) PLAN 275 |
|  |  | 18 |
|  |  | PO BOX 10758 |
|  |  | FARGO ND 58106-0758 |
| SAM STRATEGIC GROWTH PORTFOLIO (A) | 11.20% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| SAM STRATEGIC GROWTH PORTFOLIO (A) | 10.46% | J. P. MORGAN SECURITIES LLC |
|  |  | FBO EXCLUSIVE BENEFIT OF OUR CUST |
|  |  | 4 CHASE METROTECH CTR |
|  |  | BROOKLYN NY 11245-0003 |
| SAM STRATEGIC GROWTH PORTFOLIO (A) | 5.13% | LPL FINANCIAL |
|  |  | OMNIBUS CUSTOMER ACCOUNT |
|  |  | ATTN MUTUAL FUND TRADING |
|  |  | 4707 EXECUTIVE DR |
|  |  | SAN DIEGO CA 92121-3091 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| SAM STRATEGIC GROWTH PORTFOLIO (C) | 13.73% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| SAM STRATEGIC GROWTH PORTFOLIO (I) | 78.65% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| SAM STRATEGIC GROWTH PORTFOLIO (I) | 5.23% | FIRST COMMAND FINANCIAL SERVICES |
|  |  | INC |
|  |  | ATTN PLAN TRUSTEE |
|  |  | FBO FIRST COMMAND DEF CAREER |
|  |  | 1 FIRSTCOMM PLAZA |
|  |  | FORT WORTH TX 76109-4978 |
| SAM STRATEGIC GROWTH PORTFOLIO (R3) | 81.50% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SAM STRATEGIC GROWTH PORTFOLIO (R5) | 83.40% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SAM STRATEGIC GROWTH PORTFOLIO (R5) | 7.94% | KGP TELECOMMUNICATIONS LLC |
|  |  | FBO KGPCO PHANTOM UNITS PLAN |
|  |  | ATTN PLAN TRUSTEE |
|  |  | 3305 HIGHWAY 60 WEST |
|  |  | FAIRBAULT MN 55021-4869 |
| SHORT-TERM INCOME (A) | 39.50% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| SHORT-TERM INCOME (A) | 7.30% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| SHORT-TERM INCOME (C) | 26.47% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |
| SHORT-TERM INCOME (C) | 17.11% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| SHORT-TERM INCOME (C) | 8.63% | LPL FINANCIAL |
|  |  | OMNIBUS CUSTOMER ACCOUNT |
|  |  | ATTN MUTUAL FUND TRADING |
|  |  | 4707 EXECUTIVE DR |
|  |  | SAN DIEGO CA 92121-3091 |
| SHORT-TERM INCOME (C) | 5.00% | AMERICAN ENTERPRISE INVESTMENT SVC |
|  |  | FBO #XXXXXXXX |
|  |  | 707 2ND AVE S |
|  |  | MINNEAPOLIS MN 55402-2405 |
| SHORT-TERM INCOME (I) | 12.67% | CHARLES SCHWAB & CO INC |
|  |  | SPECIAL CUSTODY ACCOUNT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMERS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 101 MONTGOMERY ST |
|  |  | SAN FRANCISCO CA 94104-4141 |
| SHORT-TERM INCOME (I) | 8.64% | LIFETIME 2020 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING-H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SHORT-TERM INCOME (I) | 8.61% | LIFETIME 2030 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING- H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SHORT-TERM INCOME (I) | 8.61% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| SHORT-TERM INCOME (I) | 6.25% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| SHORT-TERM INCOME (R3) | 51.86% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SHORT-TERM INCOME (R3) | 12.12% | DSL CONSTRUCTION CORP |
|  |  | FBO EXEC NQ EXCESS OF DSL |
|  |  | CONSTRUCTION |
|  |  | ATTN PLAN TRUSTEE |
|  |  | 11300 W OLYMPIC BLVD STE 770 |
|  |  | LOS ANGELES CA 90064-1644 |
| SHORT-TERM INCOME (R3) | 11.61% | LIL DRUG STORE PRODUCTS INC |
|  |  | FBO LIL DRUG STORE PRODUCTS LONG |
|  |  | TERM PLAN 1 |
|  |  | ATTN PLAN TRUSTEE |
|  |  | 1201 CONTINENTAL PLACE NE |
|  |  | CEDAR RAPIDS IA 52402-2025 |
| SHORT-TERM INCOME (R3) | 7.07% | PRINCIPAL TRUST COMPANY |
|  |  | FBO SSP AMERICAN DEF COMP PLAN |
|  |  | ATTN SUSAN SAGGIONE |
|  |  | 1013 CENTRE RD |
|  |  | WILMINGTON DE 19805-1265 |
| SHORT-TERM INCOME (R5) | 27.84% | CHURCHILL MORTGAGE CORPORATION |
|  |  | FBO CHURCHILL MORTGAGE CORPORATION |
|  |  | INCENTIVE BONUS PLAN |
|  |  | ATTN SHEREE BARLETT |
|  |  | 761 OLD HICKORY BLVD STE 400 |
|  |  | BRENTWOOD TN 37027-4519 |
| SHORT-TERM INCOME (R5) | 14.07% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SHORT-TERM INCOME (R5) | 11.69% | BRISTOL BAY NATIVE CORPORATION |
|  |  | ATTN PLAN TRUSTEE |
|  |  | FBO BBNC NQ DEF COMP PLAN |
|  |  | 111 W 16TH AVE |
|  |  | ANCHORAGE AK 99501-6299 |
| SHORT-TERM INCOME (R5) | 9.49% | NORTHWEST ADMINISTRATORS |
|  |  | ATTN GAYLE BUSHNELL |
|  |  | FBO NQ EXCESS OF NW ADMINISTRATORS |
|  |  | 2323 EASTLAKE AVE E |
|  |  | SEATTLE WA 98102-3305 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| SHORT-TERM INCOME (R5) | 7.34% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | 499 WASHINGTON BLVD |
|  |  | JERSEY CITY NJ 07310-1995 |
| SMALLCAP (A) | 17.57% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| SMALLCAP (A) | 6.27% | J. P. MORGAN SECURITIES LLC |
|  |  | FBO EXCLUSIVE BENEFIT OF OUR CUST |
|  |  | 4 CHASE METROTECH CTR |
|  |  | BROOKLYN NY 11245-0003 |
| SMALLCAP (I) | 48.94% | CHARLES SCHWAB & CO INC |
|  |  | SPECIAL CUSTODY ACCT |
|  |  | FBO CUSTOMERS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 101 MONTGOMERY ST |
|  |  | SAN FRANCISCO CA 94104-4141 |
| SMALLCAP (I) | 19.47% | AMERICAN ENTERPRISE INVESTMENT SVC |
|  |  | FBO #XXXXXXXX |
|  |  | 707 2ND AVE S |
|  |  | MINNEAPOLIS MN 55402-2405 |
| SMALLCAP (I) | 11.23% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| SMALLCAP (I) | 9.55% | RBC CAPITAL MARKETS LLC |
|  |  | MUTUAL FUND OMNIBUS PROCESSING |
|  |  | OMNIBUS |
|  |  | ATTN MUTUAL FUND OPS MANAGER |
|  |  | 250 NICOLLET MALL SUITE 1400 |
|  |  | MINNEAPOLIS MN 55401-7582 |
| SMALLCAP (R3) | 54.53% | SAMMONS INSTITUTIONAL GROUP |
|  |  | 8300 MILLS CIVIC PKWY |
|  |  | WDM IA 50266-3833 |
| SMALLCAP (R3) | 15.77% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| SMALLCAP (R5) | 60.29% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | 499 WASHINGTON BLVD |
|  |  | JERSEY CITY NJ 07310-1995 |
| SMALLCAP (R5) | 26.42% | EMPOWER TRUST FBO |
|  |  | EMPLOYEE BENEFIT CLIENTS 401K |
|  |  | 8515 E ORCHARD RD 2T2 |
|  |  | GREENWOOD VILLAGE CO 80111-5002 |
| SMALLCAP (R5) | 5.45% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SMALLCAP (R6) | 16.43% | LIFETIME 2040 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING-H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SMALLCAP (R6) | 14.38% | LIFETIME 2050 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING-H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SMALLCAP (R6) | 13.16% | LIFETIME 2030 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING- H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SMALLCAP (R6) | 10.69% | NFS LLC FEBO |
|  |  | FIIOC AS AGENT FOR |
|  |  | QUALIFIED EMPLOYEE BENEFIT |
|  |  | PLANS (401K) FINOPS-IC FUNDS |
|  |  | 100 MAGELLAN WAY # KW1C |
|  |  | COVINGTON KY 41015-1987 |
| SMALLCAP (R6) | 6.86% | LIFETIME 2045 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING- H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SMALLCAP (R6) | 6.00% | LIFETIME 2035 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING- H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SMALLCAP (R6) | 5.30% | LIFETIME 2055 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING- H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| SMALLCAP (R6) | 5.24% | LIFETIME 2060 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SMALLCAP GROWTH I (I) | 27.62% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| SMALLCAP GROWTH I (I) | 22.17% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SMALLCAP GROWTH I (I) | 6.71% | MATRIX TRUST COMPANY AS AGENT FOR |
|  |  | BELL BANK |
|  |  | WEALTH MANAGEMENT DIVISION |
|  |  | 1333 8TH ST S |
|  |  | MOORHEAD MN 56560-3604 |
| SMALLCAP GROWTH I (I) | 5.17% | THE CHRSTAN & MSSIONRY ALLIANCE TTE |
|  |  | FBO THE ALLIANCE RET PL |
|  |  | C/O FASCORE LLC |
|  |  | 8515 E ORCHARD RD 2T2 |
|  |  | GREENWOOD VILLAGE CO 80111-5002 |
| SMALLCAP GROWTH I (R3) | 44.41% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SMALLCAP GROWTH I (R3) | 21.21% | EMPOWER TRUST FBO |
|  |  | EMPLOYEE BENEFIT CLIENTS 401K |
|  |  | 8515 E ORCHARD RD 2T2 |
|  |  | GREENWOOD VILLAGE CO 80111-5002 |
| SMALLCAP GROWTH I (R3) | 8.61% | LINCOLN RETIREMENT SERVICES COMPANY |
|  |  | FBO SCHOOL BD OF RICHMOND 403B |
|  |  | PO BOX 7876 |
|  |  | FORT WAYNE IN 46801-7876 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| SMALLCAP GROWTH I (R5) | 54.14% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SMALLCAP GROWTH I (R5) | 8.02% | JOHN HANCOCK TRUST COMPANY LLC |
|  |  | 200 BERKELEY ST STE 7 |
|  |  | BOSTON MA 02116-5038 |
| SMALLCAP GROWTH I (R5) | 7.49% | TIAA TRUST, N.A. AS CUST/TTEE |
|  |  | OF RETIREMENT PLANS |
|  |  | RECORDKEPT BY TIAA |
|  |  | ATTN: FUND OPERATIONS |
|  |  | 8500 ANDREW CARNEGIE BLVD |
|  |  | CHARLOTTE NC 28262-8500 |
| SMALLCAP GROWTH I (R5) | 6.73% | RELIANCE TRUST COMPANY TRUSTEE |
|  |  | FBO RITE SOLUTIONS SAVINGS & INVEST |
|  |  | 185 S BROAD ST STE 303 |
|  |  | PAWCATUCK CT 06379-1997 |
| SMALLCAP GROWTH I (R6) | 52.71% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| SMALLCAP GROWTH I (R6) | 12.11% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | 499 WASHINGTON BLVD |
|  |  | JERSEY CITY NJ 07310-1995 |
| SMALLCAP S&P 600 INDEX (I) | 12.51% | LPL FINANCIAL |
|  |  | OMNIBUS CUSTOMER ACCOUNT |
|  |  | ATTN MUTUAL FUND TRADING |
|  |  | 4707 EXECUTIVE DR |
|  |  | SAN DIEGO CA 92121-3091 |
| SMALLCAP S&P 600 INDEX (I) | 11.34% | PERSHING LLC |
|  |  | 1 PERSHING PLZ |
|  |  | JERSEY CITY NJ 07399-0001 |
| SMALLCAP S&P 600 INDEX (I) | 10.08% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| SMALLCAP S&P 600 INDEX (I) | 8.10% | TIAA TRUST, N.A. AS CUST/TTEE |
|  |  | OF RETIREMENT PLANS |
|  |  | RECORDKEPT BY TIAA |
|  |  | ATTN: FUND OPERATIONS |
|  |  | 8500 ANDREW CARNEGIE BLVD |
|  |  | CHARLOTTE NC 28262-8500 |
| SMALLCAP S&P 600 INDEX (I) | 6.92% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| SMALLCAP S&P 600 INDEX (I) | 6.87% | STATE STREET BANK AND TRUST COMPANY |
|  |  | TRUSTEE AND/OR CUSTODIAN |
|  |  | FBO ADP ACCESS PRODUCT |
|  |  | 1 LINCOLN ST |
|  |  | BOSTON MA 02111-2901 |
| SMALLCAP S&P 600 INDEX (R3) | 29.73% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SMALLCAP S&P 600 INDEX (R3) | 8.49% | STATE STREET BANK AND TRUST COMPANY |
|  |  | TRUSTEE AND/OR CUSTODIAN |
|  |  | FBO ADP ACCESS PRODUCT |
|  |  | 1 LINCOLN ST |
|  |  | BOSTON MA 02111-2901 |
| SMALLCAP S&P 600 INDEX (R3) | 5.97% | BENEFIT TRUST COMPANY AS CUSTODIAN |
|  |  | FOR HILLSBOROUGH COUNTY PUBLIC |
|  |  | SCHOOLS 403B |
|  |  | PO BOX 12765 |
|  |  | OVERLAND PARK KS 66282-2765 |
| SMALLCAP S&P 600 INDEX (R5) | 49.61% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SMALLCAP S&P 600 INDEX (R5) | 5.62% | WACHOVIA BANK NATIONAL ASSOCIATION |
|  |  | FBO DEF COMP PLAN OF CED INC (PS |
|  |  | ATTN SHELLEY ANDERSON |
|  |  | DEF |
|  |  | ONE WEST FOURTH STREET |
|  |  | WINSTON-SALEM NC 27101-3818 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| SMALLCAP S&P 600 INDEX (R6) | 11.91% | DIVERSIFIED GROWTH ACCOUNT |
|  |  | ATTN MUTUAL FUND ACCOUNTING H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SMALLCAP S&P 600 INDEX (R6) | 10.56% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | OMNIBUS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| SMALLCAP S&P 600 INDEX (R6) | 9.40% | DIVERSIFIED GROWTH ADAPTIVE |
|  |  | ALLOCATION ACCOUNT |
|  |  | ATTN MUTUAL FUND ACCOUNTING H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SMALLCAP S&P 600 INDEX (R6) | 6.51% | LIFETIME HYBRID 2040 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SMALLCAP S&P 600 INDEX (R6) | 5.50% | LIFETIME HYBRID 2030 FUND |
|  |  | ATTN MUTUAL FUND ACCOUNTING H221 |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SMALLCAP VALUE II (I) | 19.73% | TIAA TRUST, N.A. AS CUST/TTEE |
|  |  | OF RETIREMENT PLANS |
|  |  | RECORDKEPT BY TIAA |
|  |  | ATTN: FUND OPERATIONS |
|  |  | 8500 ANDREW CARNEGIE BLVD |
|  |  | CHARLOTTE NC 28262-8500 |
| SMALLCAP VALUE II (I) | 19.72% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| SMALLCAP VALUE II (I) | 10.07% | EMPOWER TRUST FBO |
|  |  | EMPLOYEE BENEFIT CLIENTS 401K |
|  |  | 8515 E ORCHARD RD 2T2 |
|  |  | GREENWOOD VILLAGE CO 80111-5002 |
| SMALLCAP VALUE II (I) | 9.29% | EMPOWER TRUST FBO |
|  |  | EMPLOYEE BENEFITS CLIENTS 401K |
|  |  | 8515 E ORCHARD RD 2T2 |
|  |  | GREENWOOD VILLAGE CO 80111-5002 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| SMALLCAP VALUE II (I) | 7.71% | T ROWE PRICE RETIREMENT PLAN SVCS |
|  |  | INC |
|  |  | 1435 WOOLSEY HTS |
|  |  | COLORADO SPGS CO 80915-5400 |
| SMALLCAP VALUE II (I) | 5.45% | EMPOWER TRUST FBO |
|  |  | EMPLOYEE BENEFIT CLIENTS 401K |
|  |  | 8515 E ORCHARD RD 2T2 |
|  |  | GREENWOOD VILLAGE CO 80111-5002 |
| SMALLCAP VALUE II (R3) | 66.98% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SMALLCAP VALUE II (R3) | 10.29% | STATE STREET BANK AND TRUST COMPANY |
|  |  | TRUSTEE AND/OR CUSTODIAN |
|  |  | FBO ADP ACCESS PRODUCT |
|  |  | 1 LINCOLN ST |
|  |  | BOSTON MA 02111-2901 |
| SMALLCAP VALUE II (R5) | 82.78% | DCGT AS TTEE AND/OR CUST |
|  |  | FBO PLIC VARIOUS RETIREMENT PLANS |
|  |  | OMNIBUS |
|  |  | ATTN NPIO TRADE DESK |
|  |  | 711 HIGH ST |
|  |  | DES MOINES IA 50392-0001 |
| SMALLCAP VALUE II (R6) | 59.28% | PRINCIPAL LIFE INS COMPANY CUST |
|  |  | FBO PFG OMNIBUS WRAPPED AND CUSTOM |
|  |  | ATTN PLIC PROXY COORDINATOR |
|  |  | FUNDS |
|  |  | 711 HIGH STREET |
|  |  | DES MOINES IA 50392-0001 |
| SMALLCAP VALUE II (R6) | 9.34% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | 499 WASHINGTON BLVD |
|  |  | JERSEY CITY NJ 07310-1995 |
| TAX-EXEMPT BOND (A) | 15.87% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| TAX-EXEMPT BOND (A) | 15.30% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| TAX-EXEMPT BOND (A) | 12.71% | MORGAN STANLEY SMITH BARNEY LLC |
|  |  | FOR THE EXCLUSIVE BENE OF ITS CUST |
|  |  | 1 NEW YORK PLZ FL 12 |
|  |  | NEW YORK NY 10004-1965 |
| TAX-EXEMPT BOND (A) | 6.86% | J. P. MORGAN SECURITIES LLC |
|  |  | FBO EXCLUSIVE BENEFIT OF OUR CUST |
|  |  | 4 CHASE METROTECH CTR |
|  |  | BROOKLYN NY 11245-0003 |
| TAX-EXEMPT BOND (A) | 6.77% | RAYMOND JAMES |
|  |  | OMNIBUS FOR MUTUAL FUNDS |
|  |  | HOUSE ACCT FIRM XXXXXXXX |
|  |  | ATTN: COURTNEY WALLER |
|  |  | 880 CARILLON PKWY |
|  |  | ST PETERSBURG FL 33716-1102 |
| TAX-EXEMPT BOND (C) | 22.13% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |
| TAX-EXEMPT BOND (C) | 14.31% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR THE EXCL BENE OF OUR CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| TAX-EXEMPT BOND (C) | 11.22% | LPL FINANCIAL |
|  |  | OMNIBUS CUSTOMER ACCOUNT |
|  |  | ATTN MUTUAL FUND TRADING |
|  |  | 4707 EXECUTIVE DR |
|  |  | SAN DIEGO CA 92121-3091 |
| TAX-EXEMPT BOND (C) | 8.91% | AMERICAN ENTERPRISE INVESTMENT SVC |
|  |  | FBO #XXXXXXXX |
|  |  | 707 2ND AVE S |
|  |  | MINNEAPOLIS MN 55402-2405 |
| TAX-EXEMPT BOND (C) | 7.75% | MORGAN STANLEY SMITH BARNEY LLC |
|  |  | FOR THE EXCLUSIVE BENE OF ITS CUST |
|  |  | 1 NEW YORK PLZ FL 12 |
|  |  | NEW YORK NY 10004-1965 |
| TAX-EXEMPT BOND (C) | 6.32% | CHARLES SCHWAB & CO INC |
|  |  | FBO SPECIAL CUSTODY ACCOUNTS |
|  |  | ATTN MUTUAL FUNDS |
|  |  | 211 MAIN ST |
|  |  | SAN FRANCISCO CA 94105-1901 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund/Class** | **Percent of Ownership** | **Name and Address of Owner** |
| TAX-EXEMPT BOND (C) | 5.93% | PERSHING LLC |
|  |  | 1 PERSHING PLZ |
|  |  | JERSEY CITY NJ 07399-0001 |
| TAX-EXEMPT BOND (C) | 5.20% | RBC CAPITAL MARKETS LLC |
|  |  | MUTUAL FUND OMNIBUS PROCESSING |
|  |  | OMNIBUS |
|  |  | ATTN MUTUAL FUND OPS MANAGER |
|  |  | 250 NICOLLET MALL SUITE 1400 |
|  |  | MINNEAPOLIS MN 55401-7582 |
| TAX-EXEMPT BOND (C) | 5.15% | RAYMOND JAMES |
|  |  | OMNIBUS FOR MUTUAL FUNDS |
|  |  | HOUSE ACCT FIRM XXXXXXXX |
|  |  | ATTN: COURTNEY WALLER |
|  |  | 880 CARILLON PKWY |
|  |  | ST PETERSBURG FL 33716-1102 |
| TAX-EXEMPT BOND (I) | 37.57% | NATIONAL FINANCIAL SERVICES LLC |
|  |  | FOR EXCLUSIVE BENEFIT OF OUR |
|  |  | CUSTOMERS |
|  |  | 499 WASHINGTON BLVD |
|  |  | ATTN MUTUAL FUNDS DEPT 4TH FL |
|  |  | JERSEY CITY NJ 07310-1995 |
| TAX-EXEMPT BOND (I) | 14.75% | AMERICAN ENTERPRISE INVESTMENT SVC |
|  |  | FBO #XXXXXXXX |
|  |  | 707 2ND AVE S |
|  |  | MINNEAPOLIS MN 55402-2405 |
| TAX-EXEMPT BOND (I) | 9.88% | WELLS FARGO CLEARING SERVICES LLC |
|  |  | SPECIAL CUSTODY ACCT FOR THE |
|  |  | EXCLUSIVE BENEFIT OF CUSTOMER |
|  |  | 2801 MARKET ST |
|  |  | SAINT LOUIS MO 63103-2523 |
| TAX-EXEMPT BOND (I) | 6.77% | LPL FINANCIAL |
|  |  | OMNIBUS CUSTOMER ACCOUNT |
|  |  | ATTN MUTUAL FUND TRADING |
|  |  | 4707 EXECUTIVE DR |
|  |  | SAN DIEGO CA 92121-3091 |
| TAX-EXEMPT BOND (I) | 6.15% | MORGAN STANLEY SMITH BARNEY LLC |
|  |  | FOR THE EXCLUSIVE BENE OF ITS CUST |
|  |  | 1 NEW YORK PLZ FL 12 |
|  |  | NEW YORK NY 10004-1965 |
| TAX-EXEMPT BOND (I) | 5.67% | UBS WM USA |
|  |  | 0O0 11011 6100 |
|  |  | OMNI ACCOUNT M/F |
|  |  | SPEC CDY A/C EBOC UBSFSI |
|  |  | 1000 HARBOR BLVD |
|  |  | WEEHAWKEN NJ 07086-6761 |

---

**Management Ownership**

As of January 30, 2026, the Board Members and officers of the Funds, as a group, owned less than 1% of the outstanding shares of any class of any of the Funds.

------

**PORTFOLIO MANAGER DISCLOSURE**

(as provided by the Investment Advisors)

This section contains information about portfolio managers and the other accounts they manage, their compensation, and their ownership of securities. The "Ownership of Securities" tables reflect the portfolio managers' beneficial ownership, which means a direct or indirect pecuniary interest. For some portfolio managers, this includes beneficial ownership of Fund shares through participation in an employee benefit program that invests in Principal Funds, Inc. For information about potential material conflicts of interest, see Brokerage Allocation and Other Practices - Allocation of Trades.

This section lists information about PGI's portfolio managers first. Next, the section includes information about the sub-advisors' portfolio managers alphabetically by sub-advisor.

Information in this section is as of October 31, 2025, unless otherwise noted.

------

**Advisor: Principal Global Investors, LLC (Principal Asset Allocation Portfolio Managers)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Other Accounts Managed** | **Other Accounts Managed** | **Other Accounts Managed** | **Other Accounts Managed** |
| | **Total Number<br>of Accounts** | **Total Assets <br>in the Accounts** | **Number of** <br>**Accounts that base** <br>**the Advisory Fee on Performance** | **Total Assets of the Accounts that base the Advisory Fee on Performance** |
| **Jessica S. Bush:** Diversified Income Fund | **Jessica S. Bush:** Diversified Income Fund | **Jessica S. Bush:** Diversified Income Fund | **Jessica S. Bush:** Diversified Income Fund | **Jessica S. Bush:** Diversified Income Fund |
| Registered investment companies | 3 | $5.4 billion | 0 | $0 |
| Other pooled investment vehicles | 1 | $3.1 billion | 0 | $0 |
| Other accounts | 0 | $0 | 0 | $0 |
| **Brody Dass:** SAM Balanced, SAM Conservative Balanced, SAM Conservative Growth, SAM Flexible Income and SAM Strategic Growth Portfolios | **Brody Dass:** SAM Balanced, SAM Conservative Balanced, SAM Conservative Growth, SAM Flexible Income and SAM Strategic Growth Portfolios | **Brody Dass:** SAM Balanced, SAM Conservative Balanced, SAM Conservative Growth, SAM Flexible Income and SAM Strategic Growth Portfolios | **Brody Dass:** SAM Balanced, SAM Conservative Balanced, SAM Conservative Growth, SAM Flexible Income and SAM Strategic Growth Portfolios | **Brody Dass:** SAM Balanced, SAM Conservative Balanced, SAM Conservative Growth, SAM Flexible Income and SAM Strategic Growth Portfolios |
| Registered investment companies | 12 | $8.2 billion | 0 | $0 |
| Other pooled investment vehicles | 0 | $0 | 0 | $0 |
| Other accounts | 24 | $159.2 million | 0 | $0 |
| **James W. Fennessey:** LargeCap Growth I; LargeCap Value III; MidCap Value I; Overseas; Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; SmallCap Growth I; and SmallCap Value II Funds | **James W. Fennessey:** LargeCap Growth I; LargeCap Value III; MidCap Value I; Overseas; Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; SmallCap Growth I; and SmallCap Value II Funds | **James W. Fennessey:** LargeCap Growth I; LargeCap Value III; MidCap Value I; Overseas; Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; SmallCap Growth I; and SmallCap Value II Funds | **James W. Fennessey:** LargeCap Growth I; LargeCap Value III; MidCap Value I; Overseas; Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; SmallCap Growth I; and SmallCap Value II Funds | **James W. Fennessey:** LargeCap Growth I; LargeCap Value III; MidCap Value I; Overseas; Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; SmallCap Growth I; and SmallCap Value II Funds |
| Registered investment companies | 7 | $2.1 billion | 0 | $0 |
| Other pooled investment vehicles | 39 | $77.5 billion | 0 | $0 |
| Other accounts | 26 | $4.1 billion | 0 | $0 |
| **Todd A. Jablonski:** Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; and Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070 Funds; and SAM Balanced, SAM Conservative Balanced, SAM Conservative Growth, SAM Flexible Income, and SAM Strategic Growth Portfolios  | **Todd A. Jablonski:** Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; and Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070 Funds; and SAM Balanced, SAM Conservative Balanced, SAM Conservative Growth, SAM Flexible Income, and SAM Strategic Growth Portfolios  | **Todd A. Jablonski:** Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; and Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070 Funds; and SAM Balanced, SAM Conservative Balanced, SAM Conservative Growth, SAM Flexible Income, and SAM Strategic Growth Portfolios  | **Todd A. Jablonski:** Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; and Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070 Funds; and SAM Balanced, SAM Conservative Balanced, SAM Conservative Growth, SAM Flexible Income, and SAM Strategic Growth Portfolios  | **Todd A. Jablonski:** Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; and Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070 Funds; and SAM Balanced, SAM Conservative Balanced, SAM Conservative Growth, SAM Flexible Income, and SAM Strategic Growth Portfolios  |
| Registered investment companies | 11 | $4.8 billion | 0 | $0 |
| Other pooled investment vehicles | 38 | $77.2 billion | 0 | $0 |
| Other accounts | 2 | $59.5 million | 0 | $0 |
| **Michael Messina:** LargeCap Growth I; LargeCap Value III; MidCap Value I; Overseas; SmallCap Growth I; and SmallCap Value II Funds | **Michael Messina:** LargeCap Growth I; LargeCap Value III; MidCap Value I; Overseas; SmallCap Growth I; and SmallCap Value II Funds | **Michael Messina:** LargeCap Growth I; LargeCap Value III; MidCap Value I; Overseas; SmallCap Growth I; and SmallCap Value II Funds | **Michael Messina:** LargeCap Growth I; LargeCap Value III; MidCap Value I; Overseas; SmallCap Growth I; and SmallCap Value II Funds | **Michael Messina:** LargeCap Growth I; LargeCap Value III; MidCap Value I; Overseas; SmallCap Growth I; and SmallCap Value II Funds |
| Registered investment companies | 1 | $1.2 billion | 0 | $0 |
| Other pooled investment vehicles | 0 | $0 | 0 | $0 |
| Other accounts | 0 | $0 | 0 | $0 |
| **Benjamin E. Rotenberg:** Diversified Income Fund | **Benjamin E. Rotenberg:** Diversified Income Fund | **Benjamin E. Rotenberg:** Diversified Income Fund | **Benjamin E. Rotenberg:** Diversified Income Fund | **Benjamin E. Rotenberg:** Diversified Income Fund |
| Registered investment companies | 3 | $5.4 billion | 0 | $0 |
| Other pooled investment vehicles | 1 | $3.1 billion | 0 | $0 |
| Other accounts | 0 | $0 | 0 | $0 |
| **Chad Severin:** Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; and Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070 Funds | **Chad Severin:** Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; and Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070 Funds | **Chad Severin:** Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; and Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070 Funds | **Chad Severin:** Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; and Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070 Funds | **Chad Severin:** Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; and Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070 Funds |
| Registered investment companies | 6 | $883.1 million | 0 | $0 |
| Other pooled investment vehicles | 38 | $77.2 billion | 0 | $0 |
| Other accounts | 0 | $0 | 0 | $0 |
| **Scott Smith:** Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; and Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070 Funds | **Scott Smith:** Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; and Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070 Funds | **Scott Smith:** Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; and Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070 Funds | **Scott Smith:** Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; and Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070 Funds | **Scott Smith:** Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; and Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070 Funds |
| Registered investment companies | 6 | $883.1 million | 0 | $0 |
| Other pooled investment vehicles | 51 | $77.5 billion | 0 | $0 |
| Other accounts | 26 | $4.1 billion | 0 | $0 |
| **Yesim Tokat-Acikel:** SAM Balanced, SAM Conservative Balanced, SAM Conservative Growth, SAM Flexible Income, and SAM Strategic Growth Portfolios | **Yesim Tokat-Acikel:** SAM Balanced, SAM Conservative Balanced, SAM Conservative Growth, SAM Flexible Income, and SAM Strategic Growth Portfolios | **Yesim Tokat-Acikel:** SAM Balanced, SAM Conservative Balanced, SAM Conservative Growth, SAM Flexible Income, and SAM Strategic Growth Portfolios | **Yesim Tokat-Acikel:** SAM Balanced, SAM Conservative Balanced, SAM Conservative Growth, SAM Flexible Income, and SAM Strategic Growth Portfolios | **Yesim Tokat-Acikel:** SAM Balanced, SAM Conservative Balanced, SAM Conservative Growth, SAM Flexible Income, and SAM Strategic Growth Portfolios |
| Registered investment companies | 13 | $8.2 billion | 0 | $0 |
| Other pooled investment vehicles | 4 | $124.2 million | 0 | $0 |
| Other accounts | 32 | $253.2 million | 0 | $0 |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Other Accounts Managed** | **Other Accounts Managed** | **Other Accounts Managed** | **Other Accounts Managed** |
| | **Total Number<br>of Accounts** | **Total Assets <br>in the Accounts** | **Number of** <br>**Accounts that base** <br>**the Advisory Fee on Performance** | **Total Assets of the Accounts that base the Advisory Fee on Performance** |
| **May Tong:** Diversified Income; LargeCap Growth I; LargeCap Value III; MidCap Value I; Overseas; Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; SmallCap Growth I; and SmallCap Value II Funds | **May Tong:** Diversified Income; LargeCap Growth I; LargeCap Value III; MidCap Value I; Overseas; Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; SmallCap Growth I; and SmallCap Value II Funds | **May Tong:** Diversified Income; LargeCap Growth I; LargeCap Value III; MidCap Value I; Overseas; Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; SmallCap Growth I; and SmallCap Value II Funds | **May Tong:** Diversified Income; LargeCap Growth I; LargeCap Value III; MidCap Value I; Overseas; Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; SmallCap Growth I; and SmallCap Value II Funds | **May Tong:** Diversified Income; LargeCap Growth I; LargeCap Value III; MidCap Value I; Overseas; Principal LifeTime Strategic Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; Principal LifeTime Hybrid Income, 2015, 2020, 2025, 2030, 2035, 2040, 2045, 2050, 2055, 2060, 2065, and 2070; SmallCap Growth I; and SmallCap Value II Funds |
| Registered investment companies | 10 | $7.5 billion | 0 | $0 |
| Other pooled investment vehicles | 39 | $80.3 billion | 0 | $0 |
| Other accounts | 0 | $0 | 0 | $0 |

---

**Compensation**

PGI offers the Funds' investment team a competitive compensation structure that is evaluated annually relative to other global asset management firms to ensure its continued competitiveness and alignment with industry best practices. The objective of the structure is to offer market competitive compensation that aligns individual and team contributions with firm and client performance objectives in a manner that is consistent with industry standards and business results.

Compensation for each Fund's investment team is comprised of base salary and variable incentive components. As team members advance in their careers, the variable component increases in its proportion commensurate with responsibility levels. The variable component is designed to reinforce delivery of investment performance, firm performance, team collaboration, regulatory compliance, operational excellence, client retention, and client satisfaction. Investment performance for purposes of the variable component is measured on a pre-tax basis against relative client benchmarks and peer groups over one-year, three-year, and five-year periods, calculated quarterly, reinforcing a longer-term orientation.

Payments under the variable incentive plan may be in the form of cash or a combination of cash and deferred compensation. The amount of incentive delivered in the form of deferred compensation depends on the size of an individual's incentive award as it relates to a tiered deferral schedule. Deferred compensation is required to be invested into Principal Financial Group ("PFG") restricted stock units and funds managed by the team via a co-investment program. Both payment vehicles are subject to a three-year vesting schedule. The overall measurement framework and the deferred component are well aligned with our desired focus on clients' objectives (e.g., co-investment), alignment with PFG stakeholders, and talent retention.

In addition to deferred compensation obtained through their compensation programming, team members have investments acquired through their participation in PFG's employee stock purchase plan, retirement plans, and direct personal investments. It should be noted that PFG's retirement plans and deferred compensation plans generally utilize its non-registered group separate accounts or commingled vehicles rather than the traditional mutual funds. However, in each instance these vehicles are managed in lockstep alignment with the mutual funds (i.e., "clones").

**Ownership of Securities**

---

| | | |
|:---|:---|:---|
| **Portfolio Manager** | **PFI Funds Managed by Portfolio Manager** | **Dollar Range of Securities Owned by the Portfolio Manager** |
| Jessica S. Bush | Diversified Income | $10001 - $50000 |
| Brody Dass | SAM Balanced | $10001 - $50000 |
| Brody Dass | SAM Conservative Balanced |  |
| Brody Dass | SAM Conservative Growth |  |
| Brody Dass | SAM Flexible Income |  |
| Brody Dass | SAM Strategic Growth |  |

---

------

---

| | | |
|:---|:---|:---|
| **Portfolio Manager** | **PFI Funds Managed by Portfolio Manager** | **Dollar Range of Securities Owned by the Portfolio Manager** |
| James W. Fennessey | LargeCap Growth I | $100001 - $500000 |
| James W. Fennessey | LargeCap Value III | $50001 - $100000 |
| James W. Fennessey | MidCap Value I | $1 - $10000 |
| James W. Fennessey | Overseas | $1 - $10000 |
| James W. Fennessey | Principal LifeTime Strategic Income |  |
| James W. Fennessey | Principal LifeTime 2015 |  |
| James W. Fennessey | Principal LifeTime 2020 |  |
| James W. Fennessey | Principal LifeTime 2025 |  |
| James W. Fennessey | Principal LifeTime 2030 |  |
| James W. Fennessey | Principal LifeTime 2035 |  |
| James W. Fennessey | Principal LifeTime 2040 | $10001 - $50000 |
| James W. Fennessey | Principal LifeTime 2045 |  |
| James W. Fennessey | Principal LifeTime 2050 |  |
| James W. Fennessey | Principal LifeTime 2055 |  |
| James W. Fennessey | Principal LifeTime 2060 |  |
| James W. Fennessey | Principal LifeTime 2065 |  |
| James W. Fennessey | Principal LifeTime 2070 |  |
| James W. Fennessey | Principal LifeTime Hybrid Income |  |
| James W. Fennessey | Principal LifeTime Hybrid 2015 |  |
| James W. Fennessey | Principal LifeTime Hybrid 2020 |  |
| James W. Fennessey | Principal LifeTime Hybrid 2025 |  |
| James W. Fennessey | Principal LifeTime Hybrid 2030 |  |
| James W. Fennessey | Principal LifeTime Hybrid 2035 |  |
| James W. Fennessey | Principal LifeTime Hybrid 2040 | $100001 - $500000 |
| James W. Fennessey | Principal LifeTime Hybrid 2045 |  |
| James W. Fennessey | Principal LifeTime Hybrid 2050 |  |
| James W. Fennessey | Principal LifeTime Hybrid 2055 |  |
| James W. Fennessey | Principal LifeTime Hybrid 2060 |  |
| James W. Fennessey | Principal LifeTime Hybrid 2065 |  |
| James W. Fennessey | Principal LifeTime Hybrid 2070 |  |
| James W. Fennessey | SmallCap Growth I | $500001 - $1000000 |
| James W. Fennessey | SmallCap Value II | $500001 - $1000000 |
| Todd A. Jablonski | Principal LifeTime Strategic Income |  |
| Todd A. Jablonski | Principal LifeTime 2015 |  |
| Todd A. Jablonski | Principal LifeTime 2020 |  |
| Todd A. Jablonski | Principal LifeTime 2025 |  |
| Todd A. Jablonski | Principal LifeTime 2030 |  |
| Todd A. Jablonski | Principal LifeTime 2035 |  |
| Todd A. Jablonski | Principal LifeTime 2040 |  |
| Todd A. Jablonski | Principal LifeTime 2045 |  |
| Todd A. Jablonski | Principal LifeTime 2050 |  |
| Todd A. Jablonski | Principal LifeTime 2055 |  |
| Todd A. Jablonski | Principal LifeTime 2060 |  |
| Todd A. Jablonski | Principal LifeTime 2065 |  |
| Todd A. Jablonski | Principal LifeTime 2070 |  |
| Todd A. Jablonski | Principal LifeTime Hybrid Income |  |
| Todd A. Jablonski | Principal LifeTime Hybrid 2015 |  |
| Todd A. Jablonski | Principal LifeTime Hybrid 2020 |  |
| Todd A. Jablonski | Principal LifeTime Hybrid 2025 |  |
| Todd A. Jablonski | Principal LifeTime Hybrid 2030 |  |
| Todd A. Jablonski | Principal LifeTime Hybrid 2035 |  |
| Todd A. Jablonski | Principal LifeTime Hybrid 2040 | $500001 - $1000000 |

---

------

---

| | | |
|:---|:---|:---|
| **Portfolio Manager** | **PFI Funds Managed by Portfolio Manager** | **Dollar Range of Securities Owned by the Portfolio Manager** |
| Todd A. Jablonski | Principal LifeTime Hybrid 2045 |  |
| Todd A. Jablonski | Principal LifeTime Hybrid 2050 |  |
| Todd A. Jablonski | Principal LifeTime Hybrid 2055 |  |
| Todd A. Jablonski | Principal LifeTime Hybrid 2060 |  |
| Todd A. Jablonski | Principal LifeTime Hybrid 2065 |  |
| Todd A. Jablonski | Principal LifeTime Hybrid 2070 |  |
| Todd A. Jablonski | SAM Balanced | over $1,000,000 |
| Todd A. Jablonski | SAM Conservative Balanced |  |
| Todd A. Jablonski | SAM Conservative Growth |  |
| Todd A. Jablonski | SAM Flexible Income |  |
| Todd A. Jablonski | SAM Strategic Growth | over $1,000,000 |
| Michael Messina | LargeCap Growth I | $10001 - $50000 |
| Michael Messina | LargeCap Value III |  |
| Michael Messina | MidCap Value I |  |
| Michael Messina | Overseas |  |
| Michael Messina | SmallCap Growth I | $1 - $10000 |
| Michael Messina | SmallCap Value II |  |
| Benjamin E. Rotenberg | Diversified Income | $10001 - $50000 |
| Chad Severin | Principal LifeTime Strategic Income |  |
| Chad Severin | Principal LifeTime 2015 |  |
| Chad Severin | Principal LifeTime 2020 |  |
| Chad Severin | Principal LifeTime 2025 |  |
| Chad Severin | Principal LifeTime 2030 |  |
| Chad Severin | Principal LifeTime 2035 |  |
| Chad Severin | Principal LifeTime 2040 |  |
| Chad Severin | Principal LifeTime 2045 |  |
| Chad Severin | Principal LifeTime 2050 |  |
| Chad Severin | Principal LifeTime 2055 |  |
| Chad Severin | Principal LifeTime 2060 |  |
| Chad Severin | Principal LifeTime 2065 |  |
| Chad Severin | Principal LifeTime 2070 |  |
| Chad Severin | Principal LifeTime Hybrid Income |  |
| Chad Severin | Principal LifeTime Hybrid 2015 |  |
| Chad Severin | Principal LifeTime Hybrid 2020 |  |
| Chad Severin | Principal LifeTime Hybrid 2025 |  |
| Chad Severin | Principal LifeTime Hybrid 2030 |  |
| Chad Severin | Principal LifeTime Hybrid 2035 |  |
| Chad Severin | Principal LifeTime Hybrid 2040 |  |
| Chad Severin | Principal LifeTime Hybrid 2045 |  |
| Chad Severin | Principal LifeTime Hybrid 2050 |  |
| Chad Severin | Principal LifeTime Hybrid 2055 |  |
| Chad Severin | Principal LifeTime Hybrid 2060 |  |
| Chad Severin | Principal LifeTime Hybrid 2065 |  |
| Chad Severin | Principal LifeTime Hybrid 2070 |  |
| Scott Smith | Principal LifeTime Strategic Income |  |
| Scott Smith | Principal LifeTime 2015 |  |
| Scott Smith | Principal LifeTime 2020 |  |
| Scott Smith | Principal LifeTime 2025 |  |
| Scott Smith | Principal LifeTime 2030 |  |
| Scott Smith | Principal LifeTime 2035 |  |
| Scott Smith | Principal LifeTime 2040 |  |
| Scott Smith | Principal LifeTime 2045 |  |

---

------

---

| | | |
|:---|:---|:---|
| **Portfolio Manager** | **PFI Funds Managed by Portfolio Manager** | **Dollar Range of Securities Owned by the Portfolio Manager** |
| Scott Smith | Principal LifeTime 2050 |  |
| Scott Smith | Principal LifeTime 2055 |  |
| Scott Smith | Principal LifeTime 2060 |  |
| Scott Smith | Principal LifeTime 2065 |  |
| Scott Smith | Principal LifeTime 2070 |  |
| Scott Smith | Principal LifeTime Hybrid Income |  |
| Scott Smith | Principal LifeTime Hybrid 2015 |  |
| Scott Smith | Principal LifeTime Hybrid 2020 |  |
| Scott Smith | Principal LifeTime Hybrid 2025 |  |
| Scott Smith | Principal LifeTime Hybrid 2030 |  |
| Scott Smith | Principal LifeTime Hybrid 2035 |  |
| Scott Smith | Principal LifeTime Hybrid 2040 |  |
| Scott Smith | Principal LifeTime Hybrid 2045 |  |
| Scott Smith | Principal LifeTime Hybrid 2050 | $100001 - $500000 |
| Scott Smith | Principal LifeTime Hybrid 2055 |  |
| Scott Smith | Principal LifeTime Hybrid 2060 |  |
| Scott Smith | Principal LifeTime Hybrid 2065 | $1 - $10000 |
| Scott Smith | Principal LifeTime Hybrid 2070 |  |
| Yesim Tokat-Acikel | SAM Balanced | $500001 - $1000000 |
| Yesim Tokat-Acikel | SAM Conservative Balanced |  |
| Yesim Tokat-Acikel | SAM Conservative Growth |  |
| Yesim Tokat-Acikel | SAM Flexible Income |  |
| Yesim Tokat-Acikel | SAM Strategic Growth |  |
| May Tong | Diversified Income | $50001 - $100000 |
| May Tong | LargeCap Growth I |  |
| May Tong | LargeCap Value III |  |
| May Tong | MidCap Value I |  |
| May Tong | Overseas |  |
| May Tong | Principal LifeTime Strategic Income |  |
| May Tong | Principal LifeTime 2015 |  |
| May Tong | Principal LifeTime 2020 |  |
| May Tong | Principal LifeTime 2025 |  |
| May Tong | Principal LifeTime 2030 |  |
| May Tong | Principal LifeTime 2035 |  |
| May Tong | Principal LifeTime 2040 |  |
| May Tong | Principal LifeTime 2045 |  |
| May Tong | Principal LifeTime 2050 |  |
| May Tong | Principal LifeTime 2055 |  |
| May Tong | Principal LifeTime 2060 |  |
| May Tong | Principal LifeTime 2065 |  |
| May Tong | Principal LifeTime 2070 |  |
| May Tong | Principal LifeTime Hybrid Income |  |
| May Tong | Principal LifeTime Hybrid 2015 |  |
| May Tong | Principal LifeTime Hybrid 2020 |  |
| May Tong | Principal LifeTime Hybrid 2025 |  |
| May Tong | Principal LifeTime Hybrid 2030 |  |
| May Tong | Principal LifeTime Hybrid 2035 |  |
| May Tong | Principal LifeTime Hybrid 2040 |  |
| May Tong | Principal LifeTime Hybrid 2045 |  |
| May Tong | Principal LifeTime Hybrid 2050 |  |

---

------

---

| | | |
|:---|:---|:---|
| **Portfolio Manager** | **PFI Funds Managed by Portfolio Manager** | **Dollar Range of Securities Owned by the Portfolio Manager** |
| May Tong | Principal LifeTime Hybrid 2055 |  |
| May Tong | Principal LifeTime Hybrid 2060 |  |
| May Tong | Principal LifeTime Hybrid 2065 |  |
| May Tong | Principal LifeTime Hybrid 2070 |  |
| May Tong | SmallCap Growth I |  |
| May Tong | SmallCap Value II |  |

---

------

**Advisor: Principal Global Investors, LLC (Principal Edge Portfolio Managers)**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **Other Accounts Managed** | **Other Accounts Managed** | **Other Accounts Managed** | **Other Accounts Managed** |
| | **Total Number<br>of Accounts** | **Total Assets <br>in the Accounts** | **Number of** <br>**Accounts that base** <br>**the Advisory Fee on Performance** | **Total Assets of the Accounts that base the Advisory Fee on Performance** |
| **Daniel R. Coleman:** Equity Income and Principal Capital Appreciation Funds | **Daniel R. Coleman:** Equity Income and Principal Capital Appreciation Funds | **Daniel R. Coleman:** Equity Income and Principal Capital Appreciation Funds | **Daniel R. Coleman:** Equity Income and Principal Capital Appreciation Funds | **Daniel R. Coleman:** Equity Income and Principal Capital Appreciation Funds |
| Registered investment companies | 4 | $2.7 billion | 0 | $0 |
| Other pooled investment vehicles | 3 | $330.3 million | 0 | $0 |
| Other accounts | 39 | $4.5 billion | 0 | $0 |
| **Theodore Jayne:** Principal Capital Appreciation Fund | **Theodore Jayne:** Principal Capital Appreciation Fund | **Theodore Jayne:** Principal Capital Appreciation Fund | **Theodore Jayne:** Principal Capital Appreciation Fund | **Theodore Jayne:** Principal Capital Appreciation Fund |
| Registered investment companies | 2 | $347.7 million | 0 | $0 |
| Other pooled investment vehicles | 1 | $141.1 million | 0 | $0 |
| Other accounts | 4 | $836.2 million | 0 | $0 |
| **Sarah E. Radecki:** Equity Income Fund | **Sarah E. Radecki:** Equity Income Fund | **Sarah E. Radecki:** Equity Income Fund | **Sarah E. Radecki:** Equity Income Fund | **Sarah E. Radecki:** Equity Income Fund |
| Registered investment companies | 2 | $2.3 billion | 0 | $0 |
| Other pooled investment vehicles | 2 | $189.1 million | 0 | $0 |
| Other accounts | 34 | $3.6 billion | 0 | $0 |
| **Nedret Vidinli:** Equity Income Fund | **Nedret Vidinli:** Equity Income Fund | **Nedret Vidinli:** Equity Income Fund | **Nedret Vidinli:** Equity Income Fund | **Nedret Vidinli:** Equity Income Fund |
| Registered investment companies | 1 | $691.7 million | 0 | $0 |
| Other pooled investment vehicles | 1 | $172.3 million | 0 | $0 |
| Other accounts | 11 | $446.9 million | 0 | $0 |

---

**Compensation**

PGI offers the Funds' investment team a competitive compensation structure that is evaluated annually relative to other global asset management firms to ensure its continued competitiveness and alignment with industry best practices. The objective of the structure is to offer market competitive compensation that aligns individual and team contributions with firm and client performance objectives in a manner that is consistent with industry standards and business results.

Compensation for each Fund's investment team is comprised of base salary and variable incentive components. As team members advance in their careers, the variable component increases in its proportion commensurate with responsibility levels. The variable component is designed to reinforce delivery of investment performance, firm performance, team collaboration, regulatory compliance, operational excellence, client retention, and client satisfaction. Investment performance for purposes of the variable component is measured on a pre-tax basis against relative client benchmarks and peer groups over one-year, three-year, and five-year periods, calculated quarterly, reinforcing a longer-term orientation.

Payments under the variable incentive plan may be in the form of cash or a combination of cash and deferred compensation. The amount of incentive delivered in the form of deferred compensation depends on the size of an individual's incentive award as it relates to a tiered deferral schedule. Deferred compensation is required to be invested into Principal Financial Group ("PFG") restricted stock units and funds managed by the team via a co-investment program. Both payment vehicles are subject to a three-year vesting schedule. The overall measurement framework and the deferred component are well aligned with our desired focus on clients' objectives (e.g., co-investment), alignment with PFG stakeholders, and talent retention.

In addition to deferred compensation obtained through their compensation programming, team members have investments acquired through their participation in PFG's employee stock purchase plan, retirement plans, and direct personal investments. It should be noted that PFG's retirement plans and deferred compensation plans generally utilize its non-registered group separate accounts or commingled vehicles rather than the traditional mutual funds. However, in each instance these vehicles are managed in lockstep alignment with the mutual funds (i.e., "clones").

------

**Ownership of Securities**

---

| | | |
|:---|:---|:---|
| **Portfolio Manager** | **PFI Funds Managed by Portfolio Manager** | **Dollar Range of Securities Owned by the Portfolio Manager** |
| Daniel R. Coleman | Equity Income | over $1,000,000 |
| Daniel R. Coleman | Principal Capital Appreciation | $500001 - $1000000 |
| Theodore Jayne | Principal Capital Appreciation | $500001 - $1000000 |
| Sarah E. Radecki | Equity Income | over $1,000,000 |
| Nedret Vidinli | Equity Income | $500001 - $1000000 |

---

------

**Advisor: Principal Global Investors, LLC (Principal Equities Portfolio Managers)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Other Accounts Managed** | **Other Accounts Managed** | **Other Accounts Managed** | **Other Accounts Managed** |
| | **Total Number<br>of Accounts** | **Total Assets <br>in the Accounts** | **Number of** <br>**Accounts that base** <br>**the Advisory Fee on Performance** | **Total Assets of the Accounts that base the Advisory Fee on Performance** |
| **Paul H. Blankenhagen:** Diversified International and International Equity<sup>(1)</sup> Funds | **Paul H. Blankenhagen:** Diversified International and International Equity<sup>(1)</sup> Funds | **Paul H. Blankenhagen:** Diversified International and International Equity<sup>(1)</sup> Funds | **Paul H. Blankenhagen:** Diversified International and International Equity<sup>(1)</sup> Funds | **Paul H. Blankenhagen:** Diversified International and International Equity<sup>(1)</sup> Funds |
| Registered investment companies | 2 | $1.4 billion | 0 | $0 |
| Other pooled investment vehicles | 4 | $18.9 billion | 0 | $0 |
| Other accounts | 17 | $2.4 billion | 1 | $271.8 million |
| **Emily Foshag:** SmallCap Fund | **Emily Foshag:** SmallCap Fund | **Emily Foshag:** SmallCap Fund | **Emily Foshag:** SmallCap Fund | **Emily Foshag:** SmallCap Fund |
| Registered investment companies | 3 | $316.2 million | 0 | $0 |
| Other pooled investment vehicles | 2 | $528.8 million | 0 | $0 |
| Other accounts | 16 | $2.0 billion | 2 | $515.9 million |
| **Daniel Graña:** Global Emerging Markets Fund | **Daniel Graña:** Global Emerging Markets Fund | **Daniel Graña:** Global Emerging Markets Fund | **Daniel Graña:** Global Emerging Markets Fund | **Daniel Graña:** Global Emerging Markets Fund |
| Registered investment companies | 1 | $83.2 million | 0 | $0 |
| Other pooled investment vehicles | 1 | $418.9 million | 0 | $0 |
| Other accounts | 0 | $0 | 0 | $0 |
| **John Paul Lech:** Global Emerging Markets Fund | **John Paul Lech:** Global Emerging Markets Fund | **John Paul Lech:** Global Emerging Markets Fund | **John Paul Lech:** Global Emerging Markets Fund | **John Paul Lech:** Global Emerging Markets Fund |
| Registered investment companies | 3 | $5.6 billion | 0 | $0 |
| Other pooled investment vehicles | 2 | $418.9 million | 0 | $0 |
| Other accounts | 0 | $0 | 0 | $0 |
| **George Maris:** Diversified International and International Equity<sup>(1)</sup> Funds | **George Maris:** Diversified International and International Equity<sup>(1)</sup> Funds | **George Maris:** Diversified International and International Equity<sup>(1)</sup> Funds | **George Maris:** Diversified International and International Equity<sup>(1)</sup> Funds | **George Maris:** Diversified International and International Equity<sup>(1)</sup> Funds |
| Registered investment companies | 2 | $1.4 billion | 0 | $0 |
| Other pooled investment vehicles | 4 | $18.9 billion | 0 | $0 |
| Other accounts | 17 | $2.4 billion | 1 | $271.9 million |
| **K. William Nolin:** MidCap Fund | **K. William Nolin:** MidCap Fund | **K. William Nolin:** MidCap Fund | **K. William Nolin:** MidCap Fund | **K. William Nolin:** MidCap Fund |
| Registered investment companies | 5 | $12.8 billion | 0 | $0 |
| Other pooled investment vehicles | 3 | $4.0 billion | 0 | $0 |
| Other accounts | 78 | $19.4 billion | 0 | $0 |
| **Phil Nordhus:** SmallCap Fund | **Phil Nordhus:** SmallCap Fund | **Phil Nordhus:** SmallCap Fund | **Phil Nordhus:** SmallCap Fund | **Phil Nordhus:** SmallCap Fund |
| Registered investment companies | 1 | $174.5 million | 0 | $0 |
| Other pooled investment vehicles | 1 | $469.6 million | 0 | $0 |
| Other accounts | 16 | $2.0 billion | 2 | $515.9 million |
| **Tyler O'Donnell:** LargeCap S&P 500 Index, MidCap S&P 400 Index, and SmallCap S&P 600 Index Funds | **Tyler O'Donnell:** LargeCap S&P 500 Index, MidCap S&P 400 Index, and SmallCap S&P 600 Index Funds | **Tyler O'Donnell:** LargeCap S&P 500 Index, MidCap S&P 400 Index, and SmallCap S&P 600 Index Funds | **Tyler O'Donnell:** LargeCap S&P 500 Index, MidCap S&P 400 Index, and SmallCap S&P 600 Index Funds | **Tyler O'Donnell:** LargeCap S&P 500 Index, MidCap S&P 400 Index, and SmallCap S&P 600 Index Funds |
| Registered investment companies | 18 | $23.8 billion | 0 | $0 |
| Other pooled investment vehicles | 6 | $61.1 billion | 0 | $0 |
| Other accounts | 4 | $3.1 billion | 0 | $0 |
| **Brian W. Pattinson:** SmallCap Fund | **Brian W. Pattinson:** SmallCap Fund | **Brian W. Pattinson:** SmallCap Fund | **Brian W. Pattinson:** SmallCap Fund | **Brian W. Pattinson:** SmallCap Fund |
| Registered investment companies | 3 | $736.1 million | 0 | $0 |
| Other pooled investment vehicles | 3 | $1.46 billion | 0 | $0 |
| Other accounts | 34 | $3.3 billion | 2 | $515.9 million |
| **Matthew Peron:** Diversified International and International Equity <sup>(1)</sup> Funds | **Matthew Peron:** Diversified International and International Equity <sup>(1)</sup> Funds | **Matthew Peron:** Diversified International and International Equity <sup>(1)</sup> Funds | **Matthew Peron:** Diversified International and International Equity <sup>(1)</sup> Funds | **Matthew Peron:** Diversified International and International Equity <sup>(1)</sup> Funds |
| Registered investment companies | 2 | $1.4 billion | 0 | $0 |
| Other pooled investment vehicles | 4 | $18.9 billion | 0 | $0 |
| Other accounts | 17 | $2.4 billion | 1 | $271.9 million |
| **Tom Rozycki:** MidCap Fund | **Tom Rozycki:** MidCap Fund | **Tom Rozycki:** MidCap Fund | **Tom Rozycki:** MidCap Fund | **Tom Rozycki:** MidCap Fund |
| Registered investment companies | 5 | $12.8 billion | 0 | $0 |
| Other pooled investment vehicles | 3 | $4.0 billion | 0 | $0 |
| Other accounts | 78 | $19.4 billion | 0 | $0 |
| **Aaron J. Siebel:** LargeCap S&P 500 Index, MidCap S&P 400 Index, and SmallCap S&P 600 Index Funds | **Aaron J. Siebel:** LargeCap S&P 500 Index, MidCap S&P 400 Index, and SmallCap S&P 600 Index Funds | **Aaron J. Siebel:** LargeCap S&P 500 Index, MidCap S&P 400 Index, and SmallCap S&P 600 Index Funds | **Aaron J. Siebel:** LargeCap S&P 500 Index, MidCap S&P 400 Index, and SmallCap S&P 600 Index Funds | **Aaron J. Siebel:** LargeCap S&P 500 Index, MidCap S&P 400 Index, and SmallCap S&P 600 Index Funds |
| Registered investment companies | 22 | $28.6 billion | 0 | $0 |
| Other pooled investment vehicles | 6 | $61.1 billion | 0 | $0 |
| Other accounts | 5 | $4.5 billion | 0 | $0 |

---

<sup>(1)</sup> Effective July 31, 2024, the International Fund I changed its name to the International Equity Fund.

------

**Compensation**

PGI offers the Funds' investment team a competitive compensation structure that is evaluated annually relative to other global asset management firms to ensure its continued competitiveness and alignment with industry best practices. The objective of the structure is to offer market competitive compensation that aligns individual and team contributions with firm and client performance objectives in a manner that is consistent with industry standards and business results.

Compensation for each Fund's investment team is comprised of base salary and variable incentive components. As team members advance in their careers, the variable component increases in its proportion commensurate with responsibility levels. The variable component is designed to reinforce delivery of investment performance, firm performance, team collaboration, regulatory compliance, operational excellence, client retention, and client satisfaction. Investment performance for purposes of the variable component is measured on a pre-tax basis against relative client benchmarks and peer groups over one-year, three-year, and five-year periods, calculated quarterly, reinforcing a longer-term orientation.

Payments under the variable incentive plan may be in the form of cash or a combination of cash and deferred compensation. The amount of incentive delivered in the form of deferred compensation depends on the size of an individual's incentive award as it relates to a tiered deferral schedule. Deferred compensation is required to be invested into Principal Financial Group ("PFG") restricted stock units and funds managed by the team via a co-investment program. Both payment vehicles are subject to a three-year vesting schedule. The overall measurement framework and the deferred component are well aligned with our desired focus on clients' objectives (e.g., co-investment), alignment with PFG stakeholders, and talent retention.

In addition to deferred compensation obtained through their compensation programming, team members have investments acquired through their participation in PFG's employee stock purchase plan, retirement plans, and direct personal investments. It should be noted that PFG's retirement plans and deferred compensation plans generally utilize its non-registered group separate accounts or commingled vehicles rather than the traditional mutual funds. However, in each instance these vehicles are managed in lockstep alignment with the mutual funds (i.e., "clones").

**Ownership of Securities**

---

| | | |
|:---|:---|:---|
| **Portfolio Manager** | **PFI Funds Managed by Portfolio Manager** | **Dollar Range of Securities Owned by the Portfolio Manager** |
| Paul H. Blankenhagen | Diversified International | over $1,000,000 |
| Paul H. Blankenhagen | International Equity | over $1,000,000 |
| Emily Foshag | SmallCap | $500001 - $1000000 |
| Daniel Graña | Global Emerging Markets Fund | over $1,000,000 |
| John Paul Lech | Global Emerging Markets Fund | $100001 - $500000 |
| George P. Maris | Diversified International | over $1,000,000 |
| George P. Maris | International Equity | over $1,000,000 |
| K. William Nolin | MidCap | over $1,000,000 |
| Phil Nordhus | SmallCap | over $1,000,000 |
| Tyler O'Donnell | LargeCap S&P 500 Index | $1 - $10000 |
| Tyler O'Donnell | MidCap S&P 400 Index | $1 - $10000 |
| Tyler O'Donnell | SmallCap S&P 600 Index | $1 - $10000 |
| Brian Pattinson | SmallCap | over $1,000,000 |
| Matthew Peron | Diversified International | over $1,000,000 |
| Matthew Peron | International Equity | over $1,000,000 |
| Tom Rozycki | MidCap | over $1,000,000 |
| Aaron J. Siebel | LargeCap S&P 500 Index | $1 - $10000 |
| Aaron J. Siebel | MidCap S&P 400 Index | $1 - $10000 |
| Aaron J. Siebel | SmallCap S&P 600 Index | $1 - $10000 |

---

------

**Advisor: Principal Global Investors, LLC (Principal Finisterre Portfolio Managers)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Other Accounts Managed** | **Other Accounts Managed** | **Other Accounts Managed** | **Other Accounts Managed** |
| | **Total Number<br>of Accounts** | **Total Assets <br>in the Accounts** | **Number of** <br>**Accounts that base** <br>**the Advisory Fee on Performance** | **Total Assets of the Accounts that base the Advisory Fee on Performance** |
| **Damien Buchet:** Finisterre Emerging Markets Total Return Bond Fund | **Damien Buchet:** Finisterre Emerging Markets Total Return Bond Fund | **Damien Buchet:** Finisterre Emerging Markets Total Return Bond Fund | **Damien Buchet:** Finisterre Emerging Markets Total Return Bond Fund | **Damien Buchet:** Finisterre Emerging Markets Total Return Bond Fund |
| Registered Investment Companies | 1 | $309.4 million | 0 | $0 |
| Other Pooled Investment Vehicles | 1 | $75.6 million | 0 | $0 |
| Other accounts | 0 | $0 | 0 | $0 |
| **Christopher Watson:** Finisterre Emerging Markets Total Return Bond Fund | **Christopher Watson:** Finisterre Emerging Markets Total Return Bond Fund | **Christopher Watson:** Finisterre Emerging Markets Total Return Bond Fund | **Christopher Watson:** Finisterre Emerging Markets Total Return Bond Fund | **Christopher Watson:** Finisterre Emerging Markets Total Return Bond Fund |
| Registered Investment Companies | 1 | $309.4 million | 0 | $0 |
| Other Pooled Investment Vehicles | 1 | $75.6 million | 0 | $0 |
| Other accounts | 0 | $0 | 0 | $0 |

---

**Compensation**

PGI offers the Funds' investment team a competitive compensation structure that is evaluated annually relative to other global asset management firms to ensure its continued competitiveness and alignment with industry best practices. The objective of the structure is to offer market competitive compensation that aligns individual and team contributions with firm and client performance objectives in a manner that is consistent with industry standards and business results.

Compensation for each Funds' investment team is comprised of base salary and variable incentive components. As team members advance in their careers, the variable component increases in its proportion commensurate with responsibility levels. The variable component is designed to reinforce delivery of investment performance, firm performance, team collaboration, regulatory compliance, operational excellence, client retention, and client satisfaction. Investment performance for purposes of the variable component is measured on a pre-tax basis against relative client benchmarks and peer groups over one-year, three-year, and five-year periods, calculated quarterly, reinforcing a longer-term orientation.

Payments under the variable incentive plan may be in the form of cash or a combination of cash and deferred compensation. The amount of incentive delivered in the form of deferred compensation depends on the size of an individual's incentive award as it relates to a tiered deferral schedule. Deferred compensation is required to be invested into funds managed by the team via a co-investment program and is subject to a three-year vesting schedule. The overall measurement framework and the deferred component are well aligned with our desired focus on clients' objectives (e.g., co-investment) and talent retention.

**Ownership of Securities**

---

| | | |
|:---|:---|:---|
| **Portfolio Manager** | **PFI Funds Managed by Portfolio Manager** | **Dollar Range of Securities Owned by the Portfolio Manager** |
| Damien Buchet | Finisterre Emerging Markets Total Return Bond |  |
| Christopher Watson | Finisterre Emerging Markets Total Return Bond | $500001 - $1000000 |

---

------

**Advisor: Principal Global Investors, LLC (Principal Fixed Income Portfolio Managers)**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Other Accounts Managed** | **Other Accounts Managed** | **Other Accounts Managed** | **Other Accounts Managed** |
| | **Total Number<br>of Accounts** | **Total Assets <br>in the Accounts** | **Number of** <br>**Accounts that base** <br>**the Advisory Fee on Performance** | **Total Assets of the Accounts that base the Advisory Fee on Performance** |
| **Jeff Callahan**<sup>(1)(2)</sup>**:** Core Fixed Income, Inflation Protection, International Bond and Short-Term Income Funds | **Jeff Callahan**<sup>(1)(2)</sup>**:** Core Fixed Income, Inflation Protection, International Bond and Short-Term Income Funds | **Jeff Callahan**<sup>(1)(2)</sup>**:** Core Fixed Income, Inflation Protection, International Bond and Short-Term Income Funds | **Jeff Callahan**<sup>(1)(2)</sup>**:** Core Fixed Income, Inflation Protection, International Bond and Short-Term Income Funds | **Jeff Callahan**<sup>(1)(2)</sup>**:** Core Fixed Income, Inflation Protection, International Bond and Short-Term Income Funds |
| Registered investment companies | 3 | $5.0 billion | 0 | $0 |
| Other pooled investment vehicles | 5 | $17.1 billion | 0 | $0 |
| Other accounts | 19 | $720.1 million | 0 | $0 |
| **Bryan C. Davis:** Core Fixed Income, Core Plus Bond, and Government & High Quality Bond Funds | **Bryan C. Davis:** Core Fixed Income, Core Plus Bond, and Government & High Quality Bond Funds | **Bryan C. Davis:** Core Fixed Income, Core Plus Bond, and Government & High Quality Bond Funds | **Bryan C. Davis:** Core Fixed Income, Core Plus Bond, and Government & High Quality Bond Funds | **Bryan C. Davis:** Core Fixed Income, Core Plus Bond, and Government & High Quality Bond Funds |
| Registered investment companies | 7 | $1.9 billion | 0 | $0 |
| Other pooled investment vehicles | 8 | $8.5 billion | 0 | $0 |
| Other accounts | 28 | $5.9 billion | 1 | $1.0 million |
| **Mark P. Denkinger:** High Yield Fund | **Mark P. Denkinger:** High Yield Fund | **Mark P. Denkinger:** High Yield Fund | **Mark P. Denkinger:** High Yield Fund | **Mark P. Denkinger:** High Yield Fund |
| Registered investment companies | 10 | $663.9 million | 0 | $0 |
| Other pooled investment vehicles | 11 | $618.1 million | 0 | $0 |
| Other accounts | 37 | $8.1 billion | 0 | $0 |
| **John R. Friedl:** Core Fixed Income and Core Plus Bond Funds | **John R. Friedl:** Core Fixed Income and Core Plus Bond Funds | **John R. Friedl:** Core Fixed Income and Core Plus Bond Funds | **John R. Friedl:** Core Fixed Income and Core Plus Bond Funds | **John R. Friedl:** Core Fixed Income and Core Plus Bond Funds |
| Registered investment companies | 14 | $3.9 billion | 0 | $0 |
| Other pooled investment vehicles | 9 | $5.0 billion | 0 | $0 |
| Other accounts | 14 | $322.4 million | 0 | $0 |
| **Zach Gassmann**<sup>(2)</sup>**:** Government & High Quality Bond and Inflation Protection Funds | **Zach Gassmann**<sup>(2)</sup>**:** Government & High Quality Bond and Inflation Protection Funds | **Zach Gassmann**<sup>(2)</sup>**:** Government & High Quality Bond and Inflation Protection Funds | **Zach Gassmann**<sup>(2)</sup>**:** Government & High Quality Bond and Inflation Protection Funds | **Zach Gassmann**<sup>(2)</sup>**:** Government & High Quality Bond and Inflation Protection Funds |
| Registered investment companies | 11 | $1.8 billion | 0 | $0 |
| Other pooled investment vehicles | 8 | $4.8 billion | 0 | $0 |
| Other accounts | 11 | $3.0 billion | 0 | $0 |
| **Michael Goosay:** Core Fixed Income, Core Plus Bond, and Short-Term Income Funds | **Michael Goosay:** Core Fixed Income, Core Plus Bond, and Short-Term Income Funds | **Michael Goosay:** Core Fixed Income, Core Plus Bond, and Short-Term Income Funds | **Michael Goosay:** Core Fixed Income, Core Plus Bond, and Short-Term Income Funds | **Michael Goosay:** Core Fixed Income, Core Plus Bond, and Short-Term Income Funds |
| Registered investment companies | 2 | $381.1 million | 0 | $0 |
| Other pooled investment vehicles | 4 | $5.0 billion | 0 | $0 |
| Other accounts | 15 | $1.7 billion | 1 | $397.6 million |
| **Allison Hitchings:** Government Money Market and Money Market Funds | **Allison Hitchings:** Government Money Market and Money Market Funds | **Allison Hitchings:** Government Money Market and Money Market Funds | **Allison Hitchings:** Government Money Market and Money Market Funds | **Allison Hitchings:** Government Money Market and Money Market Funds |
| Registered investment companies | 1 | $487336 | 0 | $0 |
| Other pooled investment vehicles | 1 | $1.3 billion | 0 | $0 |
| Other accounts | 2 | $16.6 million | 0 | $0 |
| **James Noble:** California Municipal and Tax-Exempt Bond Funds | **James Noble:** California Municipal and Tax-Exempt Bond Funds | **James Noble:** California Municipal and Tax-Exempt Bond Funds | **James Noble:** California Municipal and Tax-Exempt Bond Funds | **James Noble:** California Municipal and Tax-Exempt Bond Funds |
| Registered investment companies | 1 | $181.4 million | 0 | $0 |
| Other pooled investment vehicles | 3 | $28.9 million | 0 | $0 |
| Other accounts | 9 | $249.7 million | 0 | $0 |
| **Tina Paris:** Core Plus Bond Fund | **Tina Paris:** Core Plus Bond Fund | **Tina Paris:** Core Plus Bond Fund | **Tina Paris:** Core Plus Bond Fund | **Tina Paris:** Core Plus Bond Fund |
| Registered investment companies | 1 | $248.2 million | 0 | $0 |
| Other pooled investment vehicles | 11 | $8.5 billion | 0 | $0 |
| Other accounts | 16 | $1.9 billion | 0 | $0 |
| **Scott J. Peterson:** Short-Term Income Fund | **Scott J. Peterson:** Short-Term Income Fund | **Scott J. Peterson:** Short-Term Income Fund | **Scott J. Peterson:** Short-Term Income Fund | **Scott J. Peterson:** Short-Term Income Fund |
| Registered investment companies | 7 | $10.9 billion | 0 | $0 |
| Other pooled investment vehicles | 1 | $2.0 billion | 0 | $0 |
| Other accounts | 2 | $5.6 million | 0 | $0 |
| **Joshua Rank:** High Yield Fund | **Joshua Rank:** High Yield Fund | **Joshua Rank:** High Yield Fund | **Joshua Rank:** High Yield Fund | **Joshua Rank:** High Yield Fund |
| Registered investment companies | 10 | $663.9 million | 0 | $0 |
| Other pooled investment vehicles | 11 | $618.1 million | 0 | $0 |
| Other accounts | 37 | $8.1 billion | 0 | $0 |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Other Accounts Managed** | **Other Accounts Managed** | **Other Accounts Managed** | **Other Accounts Managed** |
| | **Total Number<br>of Accounts** | **Total Assets <br>in the Accounts** | **Number of** <br>**Accounts that base** <br>**the Advisory Fee on Performance** | **Total Assets of the Accounts that base the Advisory Fee on Performance** |
| **Tracy Reeg:** Government Money Market and Money Market Funds | **Tracy Reeg:** Government Money Market and Money Market Funds | **Tracy Reeg:** Government Money Market and Money Market Funds | **Tracy Reeg:** Government Money Market and Money Market Funds | **Tracy Reeg:** Government Money Market and Money Market Funds |
| Registered investment companies | 1 | $487336 | 0 | $0 |
| Other pooled investment vehicles | 1 | $1.3 billion | 0 | $0 |
| Other accounts | 2 | $16.6 million | 0 | $0 |
| **Chee Sin Koh**<sup>(1)(3)</sup>**:** International Bond Fund | **Chee Sin Koh**<sup>(1)(3)</sup>**:** International Bond Fund | **Chee Sin Koh**<sup>(1)(3)</sup>**:** International Bond Fund | **Chee Sin Koh**<sup>(1)(3)</sup>**:** International Bond Fund | **Chee Sin Koh**<sup>(1)(3)</sup>**:** International Bond Fund |
| Registered investment companies | 0 | $0 | 0 | $0 |
| Other pooled investment vehicles | 0 | $0 | 0 | $0 |
| Other accounts | 6 | $1.9 billion | 0 | $0 |
| **Darrin E. Smith:** High Yield Fund | **Darrin E. Smith:** High Yield Fund | **Darrin E. Smith:** High Yield Fund | **Darrin E. Smith:** High Yield Fund | **Darrin E. Smith:** High Yield Fund |
| Registered investment companies | 10 | $663.9 million | 0 | $0 |
| Other pooled investment vehicles | 11 | $618.1 million | 0 | $0 |
| Other accounts | 37 | $8.1 billion | 0 | $0 |
| **James Welch:** California Municipal and Tax-Exempt Bond Funds | **James Welch:** California Municipal and Tax-Exempt Bond Funds | **James Welch:** California Municipal and Tax-Exempt Bond Funds | **James Welch:** California Municipal and Tax-Exempt Bond Funds | **James Welch:** California Municipal and Tax-Exempt Bond Funds |
| Registered investment companies | 1 | $181.4 million | 0 | $0 |
| Other pooled investment vehicles | 3 | $28.9 million | 0 | $0 |
| Other accounts | 9 | $249.7 million | 0 | $0 |

---

<sup>(1)</sup> The International Bond Fund is new as of March 1, 2026.

<sup>(2)</sup> Jeff Callahan and Zach Gassmann became Portfolio Managers of the Inflation Protection Fund effective March 1, 2026.

<sup>(3)</sup> Information as of January 31, 2026.

**Compensation**

PGI offers the Funds' investment team a competitive compensation structure that is evaluated annually relative to other global asset management firms to ensure its continued competitiveness and alignment with industry best practices. The objective of the structure is to offer market competitive compensation that aligns individual and team contributions with firm and client performance objectives in a manner that is consistent with industry standards and business results.

Compensation for each Fund's investment team is comprised of base salary and variable incentive components. As team members advance in their careers, the variable component increases in its proportion commensurate with responsibility levels. The variable component is designed to reinforce delivery of investment performance, firm performance, team collaboration, regulatory compliance, operational excellence, client retention, and client satisfaction. Investment performance for purposes of the variable component is measured on a pre-tax basis against relative client benchmarks and peer groups over one-year, three-year, and five-year periods, calculated quarterly, reinforcing a longer-term orientation.

Payments under the variable incentive plan may be in the form of cash or a combination of cash and deferred compensation. The amount of incentive delivered in the form of deferred compensation depends on the size of an individual's incentive award as it relates to a tiered deferral schedule. Deferred compensation is required to be invested into Principal Financial Group ("PFG") restricted stock units and funds managed by the team via a co-investment program. Both payment vehicles are subject to a three-year vesting schedule. The overall measurement framework and the deferred component are well aligned with our desired focus on clients' objectives (e.g., co-investment), alignment with PFG stakeholders, and talent retention.

In addition to deferred compensation obtained through their compensation programming, team members have investments acquired through their participation in PFG's employee stock purchase plan, retirement plans, and direct personal investments. It should be noted that PFG's retirement plans and deferred compensation plans generally utilize its non-registered group separate accounts or commingled vehicles rather than the traditional mutual funds. However, in each instance these vehicles are managed in lockstep alignment with the mutual funds (i.e., "clones").

------

**Ownership of Securities**

---

| | | |
|:---|:---|:---|
| **Portfolio Manager** | **PFI Funds Managed by Portfolio Manager** | **Dollar Range of Securities Owned by the Portfolio Manager** |
| Jeff Callahan | Core Fixed Income | $1 - $10000 |
| Jeff Callahan | Inflation Protection<sup>(1)</sup> |  |
| Jeff Callahan | International Bond<sup>(2)</sup> |  |
| Jeff Callahan | Short-Term Income | $10001 - $50000 |
| Bryan C. Davis | Core Fixed Income |  |
| Bryan C. Davis | Core Plus Bond | $100001 - $500000 |
| Bryan C. Davis | Government & High Quality Bond | $100001 - $500000 |
| Mark P. Denkinger | High Yield | over $1,000,000 |
| John R. Friedl | Core Fixed Income | $100001 - $500000 |
| John R. Friedl | Core Plus Bond | $1 - $10000 |
| Zach Gassmann | Government & High Quality Bond | $100001 - $500000 |
| Zach Gassmann | Inflation Protection<sup>(1)</sup> |  |
| Michael Goosay | Core Fixed Income | $100001 - $500000 |
| Michael Goosay | Core Plus Bond | $100001 - $500000 |
| Michael Goosay | Short-Term Income | $10001 - $50000 |
| Allison Hitchings | Government Money Market |  |
| Allison Hitchings | Money Market |  |
| James Noble | California Municipal | $1 - $10000 |
| James Noble | Tax-Exempt Bond | $100001 - $500000 |
| Tina Paris | Core Plus Bond | $100001 - $500000 |
| Scott J. Peterson | Short-Term Income | $100001 - $500000 |
| Joshua Rank | High Yield | over $1,000,000 |
| Tracy Reeg | Government Money Market | $1 - $10000 |
| Tracy Reeg | Money Market |  |
| Chee Sin Koh | International Bond<sup>(2)</sup> |  |
| Darrin E. Smith | High Yield | $500001 - $1000000 |
| James Welch | California Municipal | $1 - $10000 |
| James Welch | Tax-Exempt Bond | $100001 - $500000 |

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<sup>(1)</sup> Information as of January 31, 2026.

<sup>(2)</sup> The International Bond Fund is new as of March 1, 2026.

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**Sub-Advisor: Principal Real Estate Investors, LLC**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Other Accounts Managed** | **Other Accounts Managed** | **Other Accounts Managed** | **Other Accounts Managed** |
| | **Total Number<br>of Accounts** | **Total Assets <br>in the Accounts** | **Number of** <br>**Accounts that base** <br>**the Advisory Fee on Performance** | **Total Assets of the Accounts that base the Advisory Fee on Performance** |
| **Keith Bokota:** Real Estate Securities Fund  | **Keith Bokota:** Real Estate Securities Fund  | **Keith Bokota:** Real Estate Securities Fund  | **Keith Bokota:** Real Estate Securities Fund  | **Keith Bokota:** Real Estate Securities Fund  |
| Registered investment companies | 3 | $596.1 million | 0 | $0 |
| Other pooled investment vehicles | 2 | $1.7 billion | 0 | $0 |
| Other accounts | 46 | $3.3 billion | 1 | $116.7 million |
| **Simon Hedger:** Global Real Estate Securities Fund | **Simon Hedger:** Global Real Estate Securities Fund | **Simon Hedger:** Global Real Estate Securities Fund | **Simon Hedger:** Global Real Estate Securities Fund | **Simon Hedger:** Global Real Estate Securities Fund |
| Registered investment companies | 4 | $692.6 million | 0 | $0 |
| Other pooled investment vehicles | 4 | $743.8 million | 0 | $0 |
| Other accounts | 38 | $4.7 billion | 2 | $167.1 million |
| **Anthony Kenkel:** Global Real Estate Securities and Real Estate Securities Funds | **Anthony Kenkel:** Global Real Estate Securities and Real Estate Securities Funds | **Anthony Kenkel:** Global Real Estate Securities and Real Estate Securities Funds | **Anthony Kenkel:** Global Real Estate Securities and Real Estate Securities Funds | **Anthony Kenkel:** Global Real Estate Securities and Real Estate Securities Funds |
| Registered investment companies | 7 | $1.3 billion | 0 | $0 |
| Other pooled investment vehicles | 5 | $2.5 billion | 0 | $0 |
| Other accounts | 86 | $8.2 billion | 3 | $283.8 million |
| **Kelly D. Rush:** Global Real Estate Securities and Real Estate Securities Funds | **Kelly D. Rush:** Global Real Estate Securities and Real Estate Securities Funds | **Kelly D. Rush:** Global Real Estate Securities and Real Estate Securities Funds | **Kelly D. Rush:** Global Real Estate Securities and Real Estate Securities Funds | **Kelly D. Rush:** Global Real Estate Securities and Real Estate Securities Funds |
| Registered investment companies | 9 | $9.1 billion | 0 | $0 |
| Other pooled investment vehicles | 5 | $2.5 billion | 0 | $0 |
| Other accounts | 86 | $8.2 billion | 3 | $283.8 million |

---

**Compensation**

Principal Real Estate Investors, LLC offers the Funds' investment team a competitive compensation structure that is evaluated annually relative to other global asset management firms to ensure its continued competitiveness and alignment with industry best practices. The objective of the structure is to offer market competitive compensation that aligns individual and team contributions with firm and client performance objectives in a manner that is consistent with industry standards and business results.

Compensation for each Fund's investment team is comprised of base salary and variable incentive components. As team members advance in their careers, the variable component increases in its proportion commensurate with responsibility levels. The variable component is designed to reinforce delivery of investment performance, firm performance, team collaboration, regulatory compliance, operational excellence, client retention, and client satisfaction. Investment performance for purposes of the variable component is measured on a pre-tax basis against relative client benchmarks and peer groups over one-year, three-year, and five-year periods, calculated quarterly, reinforcing a longer-term orientation.

Payments under the variable incentive plan may be in the form of cash or a combination of cash and deferred compensation. The amount of incentive delivered in the form of deferred compensation depends on the size of an individual's incentive award as it relates to a tiered deferral schedule. Deferred compensation is required to be invested into Principal Financial Group ("PFG") restricted stock units and funds managed by the team via a co-investment program. Both payment vehicles are subject to a three-year vesting schedule. The overall measurement framework and the deferred component are well aligned with our desired focus on clients' objectives (e.g., co-investment), alignment with PFG stakeholders, and talent retention.

In addition to deferred compensation obtained through their compensation programming, team members have investments acquired through their participation in PFG's employee stock purchase plan, retirement plans, and direct personal investments. It should be noted that PFG's retirement plans and deferred compensation plans generally utilize its non-registered group separate accounts or commingled vehicles rather than the traditional mutual funds. However, in each instance these vehicles are managed in lockstep alignment with the mutual funds (i.e., "clones").

------

**Ownership of Securities**

---

| | | |
|:---|:---|:---|
| **Portfolio Manager** | **PFI Funds Managed by Portfolio Manager** | **Dollar Range of Securities Owned by the Portfolio Manager** |
| Keith Bokota | Real Estate Securities | over $1,000,000 |
| Simon Hedger | Global Real Estate Securities | over $1,000,000 |
| Anthony Kenkel | Global Real Estate Securities | over $1,000,000 |
| Anthony Kenkel | Real Estate Securities | over $1,000,000 |
| Kelly D. Rush | Global Real Estate Securities | over $1,000,000 |
| Kelly D. Rush | Real Estate Securities | over $1,000,000 |

---

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**APPENDIX A – DESCRIPTION OF BOND RATINGS**

<u>Moody's Investors Service, Inc. Rating Definitions:</u>

Long-Term Obligation Ratings

Ratings assigned on Moody's global long-term obligation rating scales are forward-looking opinions of the relative credit risk of financial obligations issued by non-financial corporates, financial institutions, structured finance vehicles, project finance vehicles, and public sector entities. Long-term ratings are assigned to issuers or obligations with an original maturity of one year or more and reflect both on the likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in the event of default or impairment.<sup>1</sup>

<sup>1</sup> *For certain structured finance, preferred stock and hybrid securities in which payment default events are either not defined or do not match investor's expectations for timely payment, the ratings reflect the likelihood of impairment and the expected financial loss in the event of impairment.*

---

| | |
|:---|:---|
| Aaa: | Obligations rated Aaa are judged to be of the highest quality, subject to the lowest level of credit risk. |
| Aa: | Obligations rated Aa are judged to be of high quality and are subject to very low credit risk. |
| A: | Obligations rated A are considered upper-medium grade and are subject to low credit risk. |
| Baa: | Obligations rated Baa are subject to moderate credit risk. They are considered medium-grade and as such may possess certain speculative characteristics. |
| Ba: | Obligations rated Ba are judged to be speculative and are subject to substantial credit risk. |
| B: | Obligations rated B are considered speculative and are subject to high credit risk. |
| Caa: | Obligations rated Caa are judged to be speculative of poor standing and are subject to very high credit risk. |
| Ca: | Obligations rated Ca are highly speculative and are likely in, or very near, default, with some prospect of recovery of principal and interest. |
| C: | Obligations rated C are the lowest rated class of bonds and are typically in default, with little prospect for recovery of principal or interest. |

---

---

| | |
|:---|:---|
| **NOTE:** | Moody's appends numerical modifiers, 1, 2, and 3 to each generic rating classification from Aa through Caa. The modifier 1 indicates that the obligation ranks in the higher end of its generic rating category, the modifier 2 indicates a mid-range ranking, and the modifier 3 indicates a ranking in the lower end of that generic rating category. Additionally, a "(hyb)" indicator is appended to all ratings of hybrid securities issued by banks, issuers, financial companies, and securities firms.\* |

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**\***By their terms, hybrid securities allow for the omission of scheduled dividends, interest, or principal payments, which can potentially result in impairment if such an omission occurs. Hybrid securities may also be subject to contractually allowable write-downs of principal that could result in impairment. Together the hybrid indicator, the long-term obligation rating assigned to a hybrid security is an expression of the relative credit risk associated with that security.

SHORT-TERM NOTES: Short-term ratings are assigned to obligations with an original maturity of thirteen months or less and reflect both on the likelihood of a default or impairment on contractual financial obligations and the expected financial loss suffered in the event of default. Moody's employs the following three designations, all judged to be investment grade, to indicate the relative repayment ability of rated issuers:

Issuers rated Prime-1 (or related supporting institutions) have a superior ability to repay short-term debt obligations.

Issuers rated Prime-2 (or related supporting institutions) have a strong ability to repay short-term debt obligations.

Issuers rated Prime-3 (or related supporting institutions) have an acceptable ability to repay short-term obligations.

Issuers rated Not Prime do not fall within any of the Prime rating categories.

US MUNICIPAL SHORT-TERM DEBT: The Municipal Investment Grade (MIG) scale is used to rate US municipal bonds of up to three years maturity. MIG ratings are divided into three levels - MIG 1 through MIG 3 - while speculative grade short-term obligations are designated SG.

MIG 1 denotes superior credit quality, afforded excellent protection from established cash flows, highly reliable liquidity support, or demonstrated broad-based access to the market for refinancing.

MIG 2 denotes strong credit quality with ample margins of protection, although not as large as in the preceding group.

MIG 3 notes are of acceptable credit quality. Liquidity and cash-flow protection may be narrow and market access for refinancing is likely to be less well-established.

SG denotes speculative-grade credit quality and may lack sufficient margins of protection.

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<u>Description of S&P Global Ratings' Credit Rating Definitions:</u>

S&P Global's credit rating, both long-term and short-term, is a forward-looking opinion of the creditworthiness of an obligor with respect to a specific obligation. This assessment takes into consideration the creditworthiness of guarantors, insurers, or other forms of credit enhancement on the obligation.

The credit rating is not a recommendation to purchase, sell or hold a security, inasmuch as it does not comment as to market price or suitability for a particular investor.

The ratings are statements of opinion as of the date they are expressed furnished by the issuer or obtained by S&P Global Ratings from other sources S&P Global Ratings considers reliable. S&P Global Ratings does not perform an audit in connection with any rating and may, on occasion, rely on unaudited financial information. The ratings may be changed, suspended, or withdrawn as a result of changes in, or unavailability of, such information, or for other circumstances.

The ratings are based, in varying degrees, on the following considerations:

• Likelihood of payment - capacity and willingness of the obligor to meet its financial commitment on an obligation in accordance with the terms of the obligation;

• Nature of and provisions of the financial obligation;

• Protection afforded by, and relative position of, the financial obligation in the event of bankruptcy, reorganization, or other arrangement under the laws of bankruptcy and other laws affecting creditor's rights.

LONG-TERM CREDIT RATINGS:

---

| | |
|:---|:---|
| AAA: | Obligations rated 'AAA' have the highest rating assigned by S&P Global Ratings. The obligor's capacity to meet its financial commitment on the obligation is extremely strong. |
| AA: | Obligations rated 'AA' differ from the highest-rated issues only in small degree. The obligor's capacity to meet its financial commitment on the obligation is very strong. |
| A: | Obligations rated 'A' have a strong capacity to meet financial commitment on the obligation although they are somewhat more susceptible to the adverse effects of changes in circumstances and economic conditions than obligations in higher-rated categories. |
| BBB: | Obligations rated 'BBB' exhibit adequate protection parameters; however, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity to meet financial commitment on the obligation. |
| BB, B, CCC,<br>CC and C: | Obligations rated 'BB', 'B', 'CCC', 'CC', and 'C' are regarded, on balance, as having significant speculative characteristics. 'BB' indicates the lowest degree of speculation and 'C' the highest degree of speculation. While such obligations will likely have some quality and protective characteristics, these may be outweighed by large uncertainties or major risk exposures to adverse conditions.  |
| BB: | Obligations rated 'BB' are less vulnerable to nonpayment than other speculative issues. However it faces major ongoing uncertainties or exposure to adverse business, financial, or economic conditions which could lead to the obligor's inadequate capacity to meet its financial commitment on the obligation. |
| B: | Obligations rated 'B' are more vulnerable to nonpayment than 'BB' but the obligor currently has the capacity to meet its financial commitment on the obligation. Adverse business, financial, or economic conditions will likely impair this capacity. |
| CCC: | Obligations rated 'CCC' are currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions for the obligor to meet its financial commitment on the obligation. If adverse business, financial, or economic conditions occur, the obligor is not likely to have the capacity to meet its financial commitment on the obligation. |
| CC: | Obligations rated 'CC' are currently highly vulnerable to nonpayment. The 'CC' rating is used when a default has not yet occurred but S&P Global Ratings expects default to be a virtual certainty, regardless of anticipated time to default. |
| C: | The rating 'C' is highly vulnerable to nonpayment, the obligation is expected to have lower relative seniority or lower ultimate recovery compared to higher rated obligations.  |
| D: | Obligations rated 'D' are in default, or in breach of an imputed promise. For non-hybrid capital instruments, the 'D' rating category is used when payments on an obligation are not made on the date due, unless S&P Global Ratings believes that such payments will be made within five business days in the absence of a stated grace period or within the earlier of the stated grace period or 30 calendar days. The rating will also be used upon filing for bankruptcy petition or the taking of similar action and where default is a virtual certainty. If an obligation is subject to a distressed exchange offer the rating is lowered to 'D'. |

---

Plus (+) or Minus (-): The ratings from 'AA' to 'CCC' may be modified by the addition of a plus or minus sign to show relative standing within the major rating categories.

------

NR: Indicates that a rating has not been assigned or is no longer assigned.

SHORT-TERM CREDIT RATINGS: Ratings are graded into four categories, ranging from 'A-1' for the highest quality obligations to 'D' for the lowest.

---

| | |
|:---|:---|
| A-1: | This is the highest category. The obligor's capacity to meet its financial commitment on the obligation is strong. Within this category, certain obligations are designated with a plus sign (+). This indicates that the obligor's capacity to meet its financial commitment on these obligations is extremely strong. |
| A-2: | Issues carrying this designation are somewhat more susceptible to the adverse effects of the changes in circumstances and economic conditions than obligations in higher rating categories. However, the obligor's capacity to meet its financial commitment on the obligation is satisfactory. |
| A-3: | Issues carrying this designation exhibit adequate capacity to meet their financial obligations. However, adverse economic conditions or changing circumstances are more likely to lead to a weakened capacity of the obligor to meet it financial commitment on the obligation. |
| B: | Issues rated 'B' are regarded as vulnerable and have significant speculative characteristics. The obligor has capacity to meet financial commitments; however, it faces major ongoing uncertainties which could lead to obligor's inadequate capacity to meet its financial obligations. |
| C: | This rating is assigned to short-term debt obligations that are currently vulnerable to nonpayment and is dependent upon favorable business, financial, and economic conditions to meet its financial commitment on the obligation. |
| D: | This rating indicates that the issue is either in default or in breach of an imputed promise. For non-hybrid capital instruments, the 'D' rating category is used when payments on an obligation are not made on the date due, unless S&P Global Ratings believes that such payments will be made within any stated grace period. However, any stated grace period longer than five business days will be treated as five business days. The rating will also be used upon filing for bankruptcy petition or the taking of similar action and where default is a virtual certainty. If an obligation is subject to a distressed debt restructuring the rating is lowered to 'D'. |

---

MUNICIPAL SHORT-TERM NOTE RATINGS: S&P Global Ratings rates U.S. municipal notes with a maturity of less than three years as follows:

---

| | |
|:---|:---|
| SP-1: | A strong capacity to pay principal and interest. Issues that possess a very strong capacity to pay debt service is given a "+" designation. |
| SP-2: | A satisfactory capacity to pay principal and interest, with some vulnerability to adverse financial and economic changes over the terms of the notes. |
| SP-3: | A speculative capacity to pay principal and interest. |
| D: | Assigned upon failure to pay the note when due, completion of a distressed debt restructuring, or the filing of a bankruptcy petition or the taking of similar action and where default on an obligation is a virtual certainty.  |

---

------

**APPENDIX B – PRICE MAKE UP SHEET**

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| | | | |
|:---|:---|:---|:---|
| **Class A** | **Class A** | **Class A** | **Class A** |
| **Maximum Offering Price Calculation** | **Maximum Offering Price Calculation** | **Maximum Offering Price Calculation** | **Maximum Offering Price Calculation** |
| **(as of October 31, 2025)** | **(as of October 31, 2025)** | **(as of October 31, 2025)** | **(as of October 31, 2025)** |
|  | NAV | = | Maximum Offering Price |
|  | (1-Sales Charge Percentage) | = | Maximum Offering Price |
| **Fund/Portfolio** |  |  |  |
| California Municipal | $9.83 | = | $10.21 |
|  | (1-.0375) | = | $10.21 |
| Core Fixed Income | $8.72 | = | $8.92 |
|  | (1-.0225) | = | $8.92 |
| Core Plus Bond | $9.20 | = | $9.56 |
|  | (1-.0375) | = | $9.56 |
| Diversified Income | $12.05 | = | $12.52 |
|  | (1-.0375) | = | $12.52 |
| Diversified International | $16.74 | = | $17.71 |
|  | (1-.0550) | = | $17.71 |
| Equity Income | $42.84 | = | $45.33 |
|  | (1-.0550) | = | $45.33 |
| Global Emerging Markets | $35.24 | = | $37.29 |
|  | (1-.0550) | = | $37.29 |
| Global Real Estate Securities | $8.96 | = | $9.48 |
|  | (1-.0550) | = | $9.48 |
| Government & High Quality Bond | $9.16 | = | $9.37 |
|  | (1-.0225) | = | $9.37 |
| High Yield | $6.79 | = | $7.05 |
|  | (1-.0375) | = | $7.05 |
| LargeCap Growth I | $17.10 | = | $18.10 |
|  | (1-.0550) | = | $18.10 |
| LargeCap S&P 500 Index | $33.18 | = | $33.69 |
|  | (1-.0150) | = | $33.69 |
| MidCap | $43.17 | = | $45.68 |
|  | (1-.0550) | = | $45.68 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| **Class A** | **Class A** | **Class A** | **Class A** |
| **Maximum Offering Price Calculation** | **Maximum Offering Price Calculation** | **Maximum Offering Price Calculation** | **Maximum Offering Price Calculation** |
| **(as of October 31, 2025)** | **(as of October 31, 2025)** | **(as of October 31, 2025)** | **(as of October 31, 2025)** |
|  | NAV | = | Maximum Offering Price |
|  | (1-Sales Charge Percentage) | = | Maximum Offering Price |
| **Fund/Portfolio** |  |  |  |
| MidCap Value I | $15.94 | = | $16.87 |
|  | (1-.0550) | = | $16.87 |
| Money Market | $1.00 | = | $1.00 |
|  | (1-.0000) | = | $1.00 |
| Principal Capital Appreciation | $90.63 | = | $95.90 |
|  | (1-.0550) | = | $95.90 |
| Principal LifeTime 2020 | $13.35 | = | $13.87 |
|  | (1-.03750) | = | $13.87 |
| Principal LifeTime 2030 | $15.55 | = | $16.16 |
|  | (1-.03750) | = | $16.16 |
| Principal LifeTime 2040 | $17.50 | = | $18.52 |
|  | (1-.0550) | = | $18.52 |
| Principal LifeTime 2050 | $19.71 | = | $20.86 |
|  | (1-.0550) | = | $20.86 |
| Principal LifeTime Strategic Income | $12.28 | = | $12.76 |
|  | (1-.0375) | = | $12.76 |
| Real Estate Securities | $28.06 | = | $29.69 |
|  | (1-.0550) | = | $29.69 |
| SAM Balanced | $17.98 | = | $19.03 |
|  | (1-.0550) | = | $19.03 |
| SAM Conservative Balanced | $13.42 | = | $14.20 |
|  | (1-.0550) | = | $14.20 |
| SAM Conservative Growth | $21.76 | = | $23.03 |
|  | (1-.0550) | = | $23.03 |
| SAM Flexible Income | $12.87 | = | $13.37 |
|  | (1-.0375) | = | $13.37 |
| SAM Strategic Growth | $25.64 | = | $27.13 |
|  | (1-.0550) | = | $27.13 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| **Class A** | **Class A** | **Class A** | **Class A** |
| **Maximum Offering Price Calculation** | **Maximum Offering Price Calculation** | **Maximum Offering Price Calculation** | **Maximum Offering Price Calculation** |
| **(as of October 31, 2025)** | **(as of October 31, 2025)** | **(as of October 31, 2025)** | **(as of October 31, 2025)** |
|  | NAV | = | Maximum Offering Price |
|  | (1-Sales Charge Percentage) | = | Maximum Offering Price |
| **Fund/Portfolio** |  |  |  |
| Short-Term Income | $12.16 | = | $12.44 |
|  | (1-.0225) | = | $12.44 |
| SmallCap | $28.70 | = | $30.37 |
|  | (1-.0550) | = | $30.37 |
| Tax-Exempt Bond | $6.69 | = | $6.95 |
|  | (1-.0375) | = | $6.95 |

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------

**APPENDIX C – PROXY VOTING POLICIES**

The proxy voting policies applicable to each Fund appear in the following order:

The proxy voting policy for the Principal Funds is first, followed by PGI's proxy voting policy, and followed by the proxy voting policies for the sub-advisors, alphabetically.

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**Proxy Voting Policies and Procedures For**

**Principal Funds, Inc. ("PFI")**

**Principal Variable Contracts Funds, Inc.("PVC")**

**Principal Exchange-Traded Funds ("PETF")**

(each a "Fund" and together "the Principal Funds")

The Board has delegated responsibility for decisions regarding proxy voting for securities held by each Fund to Principal Global Investors ("PGI") or to the Fund's sub-advisor, as appropriate. PGI and each sub-advisor will vote such proxies in accordance with its proxy policies and procedures, which have been reviewed by the Fund's Board. Any material changes to the proxy policies and procedures will be submitted to the Board for approval.

Funds that operate as funds of funds invest in shares of other Funds of PFI and PETF. PGI is authorized to vote proxies related to the underlying funds. If an underlying fund holds a shareholder meeting, in order to avoid any potential conflict of interest, PGI will vote shares of such fund on any proposal submitted to the fund's shareholders in the same proportion as the votes of other shareholders of the underlying fund.

For Funds that participate in a securities lending program, the voting rights for securities that are loaned are transferred to the borrower. Therefore, the lender (i.e., a Fund) is not entitled to vote the loaned securities, unless it recalls those securities. Those managing the Fund's investments may recall securities for voting purposes when they reasonably believe the ability to vote such securities outweighs the additional revenue received if such securities were not recalled.

The Funds have a policy prohibiting investment in PFG securities except for those Funds that track an index and are permitted to do so under SEC no-action relief. If any such securities are owned in any of the Funds' portfolios, the Investment Adviser will vote according to third-party guidelines. PGI has a policy to not buy securities of affiliated entities in the portfolios they manage.

Further, for PVC, Principal Life votes each Fund's shares allocated to each of its registered separate accounts and attributable to variable annuity contracts or variable life insurance policies participating in the separate accounts. The shares are voted in accordance with instructions received from contract holders, policy owners, participants, and annuitants. Other shares of each Fund held by each separate account, including shares for which no timely voting instructions are received, are voted in proportion to the instructions that are received with respect to contracts or policies participating in that separate account. Principal Life will vote the shares based upon the instructions received from contract owners, regardless of the number of contract owners who provide such instructions. A potential effect of this proportional voting is that a small number of contract owners may determine the outcome of a shareholder vote if only a small number of contract owners provide voting instructions. Shares of each of the Funds held in the general account of Principal Life or in the unregistered separate accounts are voted in proportion to the instructions that are received with respect to contracts and policies participating in its registered and unregistered separate accounts. If Principal Life determines, under applicable law, that a Fund's shares held in one or more separate accounts or in its general account need not be voted according to the instructions that are received, it may vote those Fund shares in its own right. Shares held by retirement plans are voted in accordance with the governing documents of the plans.

Each quarter, the adviser or sub-adviser must provide to the Principal Funds:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Written affirmation that all proxies voted during the preceding calendar quarter, other than those specifically identified by the adviser or sub-adviser, were voted in a manner consistent with the adviser's or sub-adviser's voting policies and procedures. In order to monitor the potential effect of conflicts of interest of an adviser or sub-adviser, the adviser or sub-adviser will identify any proxies the adviser or sub-adviser voted in a manner inconsistent with its policies and procedures. The adviser or sub-adviser shall list each vote, explain why the adviser or sub-adviser voted in a manner contrary to its policies and procedures, state whether the adviser or sub-adviser's vote was consistent with the recommendation to the adviser or sub-adviser of a third-party and, if so, identify the third-party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Written notification of any material changes to the adviser's or sub-adviser's proxy voting policies and procedures made during the preceding calendar quarter.

Annually, the adviser or sub-adviser must provide to the Principal Funds, no later than July 31, their proxy voting data for each vote cast during the 12-month period ended June 30 for each Fund portfolio or portion of Fund portfolio for which it serves as investment adviser, in a format acceptable to Fund management.

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**Principal Global Investors, LLC** 

Proxy Voting Policies and Procedures

March 2025

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**Introduction**

Principal Global Investors, LLC (doing business as Principal Asset Management) is an investment adviser registered with the U.S. Securities and Exchange Commission ("SEC") pursuant to the Investment Advisers Act of 1940 (the "Advisers Act"). As a registered investment adviser, Principal Asset Management has a fiduciary duty to act in the best interests of its clients. Principal Asset Management recognizes that this duty requires it to vote client securities, for which it has voting power on the applicable record date, in a timely manner and make voting decisions that are in the best interests of its clients. This document, the Principal Asset Management Proxy Voting Policies and Procedures (the "Policy"), is intended to comply with the requirements of the Investment Advisers Act of 1940, the Investment Company Act of 1940 and the Employee Retirement Income Security Act of 1974 applicable to the voting of the proxies of both US and non- US issuers on behalf of clients of Principal Asset Management who have delegated such authority and discretion.

**Relationship between Investment Strategy, Sustainable Investing and Proxy Voting**

Principal Asset Management has a fiduciary duty to make investment decisions that are in its clients' best interests to maximize the value of their shares. Proxy voting is an important part of the process through which Principal Asset Management can support strong corporate governance structures, shareholder rights and transparency. Principal Asset Management also believes a company's positive environmental and social practices may reduce risk and, in turn, influence the value of a company. Principal Asset Management may take these factors into consideration, alongside other non-sustainability factors, when voting proxies in its effort to seek the best economic outcome for its clients. Shareholder proposals often address matters that are in direct conflict with the opinions of company management. As a result, we believe additional scrutiny is required and, therefore, all shareholder proposals are escalated to the investment teams for a final voting decision.

**Roles and Responsibilities**

*<u>Role of the Proxy Voting Committee</u>*

Principal Asset Management Proxy Voting Committee (the "Proxy Voting Committee") shall (i) oversee the voting of proxies and the Proxy Advisory Firm, (ii) where necessary, make determinations as to how to instruct the vote on certain specific proxies, (iii) verify ongoing compliance with the Policy, (iv) review the business practices of the Proxy Advisory Firm and (v) evaluate, maintain, and review the Policy on an annual basis. The Proxy Voting Committee is comprised of representatives of each investment team and a representative from Principal Asset Management Risk, Legal, Operations, and Compliance will be available to advise the Proxy Voting Committee but are non-voting members. The Proxy Voting Committee may designate one or more of its members to oversee specific, ongoing compliance with respect to the Policy and may designate personnel to instruct the vote on proxies on behalf the Principal Asset Management clients (collectively, "Authorized Persons").

The Proxy Voting Committee shall meet at least four times per year, and as necessary to address special situations.

*Principal Global Investors, LLC ("PGI") began using Principal Asset Management ("Principal AM") as a DBA (doing business as) name and PGI will be referenced throughout this document as Principal AM (or "the Firm"). While Principal AM may include other entities, this Charter refers specifically to PGI and Principal Real Estate*.

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*<u>Role of Portfolio Management</u>*

While the Proxy Voting Committee establishes the Guidelines and Procedures, the Proxy Voting Committee does not direct votes for any client except in certain cases where a conflict of interest exists. Each investment team is responsible for determining how to vote proxies for those securities held in the portfolios their team manages. While investment teams generally vote consistently with the Guidelines, there may be instances where their vote deviates from the Guidelines. In those circumstances, the investment team will work within the Exception Process. In some instances, the same security may be held by more than one investment team. In these cases, Principal Asset Management may vote differently on the same matter for different accounts as determined by each investment team.

**Proxy Voting Guidelines**

The Proxy Voting Committee and Chief Investment Officer, on an annual basis, or more frequently as needed, will establish a working group to review draft proxy voting guidelines recommended to the Committee ("Draft Guidelines"). The Guidelines Working Group will collect feedback and propose Draft Guidelines for adoption by the Committee. Each investment team maintains autonomy to select the most correlated Guidelines for their strategies. Collectively, these guidelines will constitute the current Proxy Voting Guidelines of Principal Asset Management and may change from time to time (the "Guidelines"). The Proxy Voting Committee has the obligation to determine that, in general, voting proxies pursuant to the Guidelines is in the best interests of clients. Exhibit A (Proxy Voting Philosophy Summary) provides an overview of our current philosophy underlying our three core Guidelines; Base, Sustainable and Board Aligned. Full overviews of each of these custom Guidelines are maintained and available.

There may be instances where proxy votes will not be in accordance with the Guidelines. Clients may instruct Principal Asset Management to utilize a different set of guidelines, request specific deviations, or directly assume responsibility for the voting of proxies. In addition, Principal Asset Management may deviate from the Guidelines on an exception basis if the investment team or Principal Asset Management has determined that it is the best interest of clients in a particular strategy to do so, or where the Guidelines do not direct a particular response and instead list relevant factors. Any such a deviation will comply with the Exception Process which shall include a written record setting out the rationale for the deviation.

The subject of the proxy vote may not be covered in the Guidelines. In situations where the Guidelines do not provide a position, Principal Asset Management will consider the relevant facts and circumstances of a particular vote and then vote in a manner Principal Asset Management believes to be in the clients' bests interests. In such circumstance, the analysis will be documented in writing and periodically presented to the Proxy Voting Committee. To the extent that the Guidelines do not cover potential voting issues, Principal Asset Management may consider the spirit of the Guidelines and instruct the vote on such issues believed to be in the best interests of the client.

**Use of Proxy Advisory Firms**

Principal Asset Management has retained one or more third-party proxy service provider(s) (the "Proxy Advisory Firm") to provide recommendations for proxy voting guidelines, information on shareholder meeting dates and proxy materials, translate proxy materials printed in a foreign language, provide research on proxy proposals, operationally process votes in accordance with the Guidelines on behalf of the clients for whom Principal Asset Management has proxy voting responsibility, and provide reports concerning the proxies voted ("Proxy Voting Services"). Although Principal Asset Management has retained the Proxy Advisory Firm for Proxy Voting Services, the entity remains responsible for proxy voting decisions. Principal Asset Management has designed the Policy to oversee and evaluate the Proxy Advisory Firm, including with respect to the matters described below, to support its voting in accordance with this Policy.

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*<u>Oversight of Proxy Advisory Firms</u>*

Prior to the selection of any new Proxy Advisory Firm and annually thereafter or more frequently if deemed necessary by Principal Asset Management, the Proxy Voting Committee will consider whether the Proxy Advisory Firm: (a) has the capacity and competency to adequately analyze proxy issues and provide the Proxy Voting Services the Proxy Advisory Firm has been engaged to provide and (b) can make its recommendations in an impartial manner, in consideration of the best interests of Principal Asset Management's clients, and consistent with its voting policies. Such considerations may include, depending on the Proxy Voting Services provided, the following: (i) periodic sampling of votes pre-populated by the Proxy Advisory Firm's systems as well as votes cast by the Proxy Advisory Firm to review that the Guidelines adopted by Principal Asset Management are being followed; (ii) onsite visits to the Proxy Advisory Firm office and/or discussions with the Proxy Advisory Firm to determine whether the Proxy Advisory Firm continues to have the capacity and competency to carry out its proxy obligations to Principal Asset Management (iii) a review of those aspects of the Proxy Advisory Firm's policies, procedures, and methodologies for formulating voting recommendations that Principal Asset Management considers material to Proxy Voting Services, including factors considered, with a particular focus on those relating to identifying, addressing and disclosing potential conflicts of interest (including potential conflicts related to the provision of Proxy Voting Services, activities other than Proxy Voting Services, and those presented by affiliation such as a controlling shareholder of the Proxy Advisory Firm) and monitoring that materially current, accurate, and complete information is used in creating recommendations and research; (iv) requiring the Proxy Advisory Firm to notify Principal Asset Management if there is a substantive change in the Proxy Advisory Firm's policies and procedures or otherwise to business practices, including with respect to conflicts, information gathering and creating voting recommendations and research, and reviewing any such change(s); (v) a review of how and when the Proxy Advisory Firm engages with, and receives and incorporates input from, issuers, the Proxy Advisory Firm's clients and other third-party information sources; (vi) assessing how the Proxy Advisory Firm considers factors unique to a specific issuer or proposal when evaluating a matter subject to a shareholder vote; (vii) in case of an error made by the Proxy Advisory Firm, discussing the error with the Proxy Advisory Firm and determining whether appropriate corrective and preventive action is being taken; and (viii) assessing whether the Proxy Advisory Firm appropriately updates its methodologies, guidelines, and voting recommendations on an ongoing basis and incorporates input from issuers and Proxy Advisory Firm clients in the update process. In evaluating the Proxy Advisory Firm, Principal Asset Management may also consider the adequacy and quality of the Proxy Advisory Firm's staffing, personnel, and/or technology.

**Procedures for Voting Proxies**

To increase the efficiency of the voting process, Principal Asset Management utilizes the Proxy Advisory Firm to act as its voting agent for its clients' holdings. Issuers initially send proxy information to the clients' custodians.

Principal Asset Management instructs these custodians to direct proxy related materials to the Proxy Advisory Firm. The Proxy Advisory Firm provides Principal Asset Management with research related to each resolution. Principal Asset Management analyzes relevant proxy materials on behalf of their clients and seek to instruct the vote (or refrain from voting) proxies in accordance with the Guidelines. A client may direct Principal Asset Management to vote for such client's account differently than what would occur in applying the Policy and the Guidelines. Principal Asset Management may also agree to follow a client's individualized proxy voting guidelines or otherwise agree with a client on particular voting considerations. Principal Asset Management seeks to vote (or refrain from voting) proxies for its clients in a manner determined to be in their best financial interests. In some cases, Principal Asset Management may determine that it is in the best interests of clients to refrain from exercising the clients' proxy voting rights. Principal Asset Management may determine that voting is not in the best interests of a client and refrain from voting if the costs, including the opportunity costs, of voting would, in the view of Principal Asset Management, exceed the expected benefits of voting to the client.

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**Procedures for Proxy Issues within the Guidelines**

Where the Guidelines address the proxy matter being voted on, the Proxy Advisory Firm will generally process all proxy votes in accordance with the Guidelines. In the case of Shareholder Proposals for actively held securities, all ballots will be escalated to the applicable investment team to make a case-by-case determination of the vote decision. The applicable investment team may provide instructions to vote contrary to the Guidelines in their discretion and with sufficient rationale documented in writing to seek to maximize the value of the client's investments or is otherwise in the client's best interest. This rationale will be submitted to Principal Asset Management Compliance to approve and once approved administered by Principal Asset Management Operations. This process will follow the Exception Process. The Proxy Voting Committee will receive and review a quarterly report summarizing all proxy votes for securities for which Principal Asset Management exercises voting authority. In certain cases, a client may have elected to have Principal Asset Management administer a custom policy which is unique to the Client. If Principal Asset Management is also responsible for the administration of such a policy, in general, except for the specific policy differences, the procedures documented here will also be applicable, excluding reporting and disclosure procedures.

**Procedures for Proxy Issues Outside the Guidelines**

To the extent that the Guidelines do not cover potential voting issues, the Proxy Advisory Firm will seek direction from Principal Asset Management. Principal Asset Management may consider the spirit of the Guidelines and instruct the vote on such issues in a manner believed to be in the best interests of the client. Although this not an exception to the Guidelines, this process will also follow the Exception Process. The Proxy Voting Committee will receive and review a quarterly report summarizing all proxy votes for securities for which Principal Asset Management exercises voting discretion, which shall include instances where issues fall outside the Guidelines.

**Securities Lending**

Some clients may have entered into securities lending arrangements with agent lenders to generate additional revenue. If a client participates in such lending, the client will need to inform Principal Asset Management as part of their contract with Principal Asset Management if they require Principal Asset Management to take actions in regard to voting securities that have been lent. If not commemorated in such agreement nor dictated by regulatory requirements, Principal Asset Management will not recall securities and as such, they will not have an obligation to direct the proxy voting of lent securities.

In the case of lending, Principal Asset Management maintains one share for each company security out on loan by the client. Principal Asset Management will vote the remaining share in these circumstances.

In cases where Principal Asset Management does not receive a solicitation or enough information within a sufficient time (as reasonably determined by Principal Asset Management) prior to the proxy-voting deadline, Principal Asset Management or the Proxy Advisory Firm may be unable to vote.

**Regional Variances in Proxy Voting**

Principal Asset Management utilizes the Policy and Guidelines for both US and non-US clients, and there are some significant differences between voting U.S. company proxies and voting non-U.S. company proxies. For U.S. companies, it is usually relatively easy to vote proxies, as the proxies are typically received automatically and may be voted by mail or electronically. In most cases, the officers of a U.S. company soliciting a proxy act as proxies for the company's shareholders.

With respect to non-U.S. companies, we make reasonable efforts to vote most proxies and follow a similar process to those in the U.S. However, in some cases it may be both difficult and costly to vote proxies due to local regulations, customs or other requirements or restrictions, and such circumstances and expected costs may outweigh any anticipated economic benefit of voting. The major difficulties and costs may include: (i) appointing a proxy; (ii) obtaining reliable information about the time and location of a meeting; (iii) obtaining relevant information about voting procedures for foreign shareholders; (iv) restrictions on trading securities that are subject to proxy votes (share-blocking periods); (v) arranging for a proxy to vote locally in person; (vi) fees charged by custody banks for providing certain services with

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regard to voting proxies; and (vii) foregone income from securities lending programs. In certain instances, it may be determined by Principal Asset Management that the anticipated economic benefit outweighs the expected cost of voting. Principal Asset Management intends to make their determination on whether to vote proxies of non-U.S. companies on a case- by-case basis. In doing so, Principal Asset Management shall evaluate market requirements and impediments, including the difficulties set forth above, for voting proxies of companies in each country. Principal Asset Management periodically reviews voting logistics, including costs and other voting difficulties, on a client by client and country by country basis, in order to determine if there have been any material changes that would affect Principal Asset Management's determinations and procedures.

**Conflicts of Interest**

Principal Asset Management recognizes that, from time to time, potential conflicts of interest may exist. In order to avoid any perceived or actual conflict of interest, the procedures set forth below have been established for use when Principal Asset Management encounters a potential conflict to ensure that its voting decisions are based on maximizing shareholder value and are not the product of a conflict.

*<u>Addressing Conflicts of Interest – Exception Process</u>*

Prior to voting contrary to the Guidelines, the relevant investment team must complete and submit a report to Principal Asset Management Compliance setting out the name of the security, the issue up for vote, a summary of the Guidelines' recommendation, the vote changes requested and the rational for voting against the Guidelines' recommendation. The member of the investment team requesting the exception must attest to compliance with Principal's Code of Conduct and the has an affirmative obligation to disclose any known personal or business relationship that could affect the voting of the applicable proxy. Principal Asset Management Compliance will approve or deny the exception in consultation, if deemed necessary, with the Legal.

If Principal Asset Management Compliance determines that there is no potential material conflict exists, the Guidelines may be overridden. If Principal Asset Management Compliance determines that there exists or may exist a material conflict, it will refer the issue to the Proxy Voting Committee. The Proxy Voting Committee will consider the facts and circumstances of the pending proxy vote and the potential or actual material conflict and decide by a majority vote as to how to vote the proxy – i.e., whether to permit or deny the exception.

In considering the proxy vote and potential material conflict of interest, the Proxy Voting Committee may review the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The percentage of outstanding securities of the issuer held on behalf of clients by Principal Asset Management;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The nature of the relationship of the issuer with the Principal Asset Management, its affiliates or its executive officers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Whether there has been any attempt to directly or indirectly influence the investment team's decision;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Whether the direction of the proposed vote would appear to benefit Principal Asset Management or a related party; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Whether an objective decision to vote in a certain way will still create a strong appearance of a conflict.

To further address potential conflicts of interest for any proxy votes specific to Principal Financial Group common stock, the exception process is not applicable. In the case of any proprietary electronically traded funds ("ETF"s), mutual funds or other comingled proprietary vehicles, PGI will vote in the same proportion as all other voting shareholders of the underlying fund/vehicle, which is referred to as echo voting, and the exception process is not applicable If echo voting is not available or operationally feasible, Principal Asset Management may abstain from voting.

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In the event that the Proxy Advisor Firm itself has a conflict and thus is unable to provide a recommendation, the investment team may vote in accordance with the recommendation of another independent service provider, if available. If a recommendation from an independent service provider other than the Proxy Advisor Firm is not available, the investment team will follow the Exception Process. Principal Asset Management Compliance will review the form and if it determines that there is no potential material conflict mandating a voting recommendation from the Proxy Voting Committee, the investment team may instruct the Proxy Advisory Firm to vote the proxy issue as it determines is in the best interest of clients. If Principal Asset Management Compliance determines that there exists or may exist a material conflict, it will refer the issue to the Proxy Voting Committee for consideration as outlined above.

**Availability of Proxy Voting Information and Recordkeeping**

*<u>Disclosure</u>*

Principal Asset Management publicly discloses on our website <u>Principal Asset Management Vote Disclosure</u> The interactive voting dashboard, allows for dynamic disclosure of the manner in which votes were cast, including details related to (i) votes against management, (ii) abstentions, (iii) vote rationale, and (iii) voting metrics. For more information, Clients may contact Principal Asset Management for details related to how Principal Asset Management has voted with respect to securities held in the Client's account. On request, Principal Asset Management will provide clients with a summary of Principal Asset Management's proxy voting guidelines, process and policies and will inform the clients how they can obtain a copy of the complete Proxy Voting Policies and Procedures upon request. Principal Asset Management will also include such information described in the preceding two sentences in Part 2A of its Form ADV.

*<u>Recordkeeping</u>*

Principal Asset Management will keep records of the following items: (i) the Guidelines, (ii) the Proxy Voting Policies and Procedures; (iii) proxy statements received regarding client securities (unless such statements are available on the SEC's Electronic Data Gathering, Analysis, and Retrieval (EDGAR) system); (iv) records of votes they cast on behalf of clients, which may be maintained by a Proxy Advisory Firm if it undertakes to provide copies of those records promptly upon request; (v) records of written client requests for proxy voting information and responses from Principal Asset Management (whether a client's request was oral or in writing); (vi) any documents prepared by Principal Asset Management that were material to making a decision how to vote, or that memorialized the basis for the decision; (vii) a record of any testing conducted on any Proxy Advisory Firm's votes; (viii) materials collected and reviewed by Principal Asset Management as part of its due diligence of the Proxy Advisory Firm; (ix) a copy of each version of the Proxy Advisory Firm's policies and procedures provided to Principal Asset Management; and (x) the minutes of the Proxy Voting Committee meetings. All of the records referenced above will be kept in an easily accessible place for at least the length of time required by local regulation and custom, and, if such local regulation requires that records are kept for less than six years from the end of the fiscal year during which the last entry was made on such record, we will follow the US rule of six years. If the local regulation requires that records are kept for more than six years, we will comply with the local regulation. We maintain the vast majority of these records electronically.

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**Appendix**

**Proxy Voting Philosophy**

Principal Asset Management's Proxy Voting Philosophy is built on an unwavering commitment of creating long- term value for our shareholders and investing in businesses sharing this commitment. While we think setting and executing corporate policies should generally rest with a company's board of directors and executive management, we also think shareholders play a critical role in holding these parties accountable. We take this responsibility seriously. Our policy is implemented globally, taking into consideration the relevant legal and regulatory requirements in each region.

Our philosophy is structured around four key themes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Board Structure and Composition

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Board Oversight of Risk and Strategy

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Board Oversight of Executive Selection and Compensation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shareholder Rights and Protections

The positions described below should be understood as principles underlying our general philosophy and not as strict requirements to be followed with respect to each and every proxy vote.

**Board Structure, Composition, and Accountability**

The philosophy of our active investment teams: Our clients, as shareholders, own the corporation. Boards of directors are accountable to them. Corporate management, in turn, is accountable to its board. As investors, we need to be comfortable delegating trust and responsibility to these parties – and these parties should have the appropriate discretion to manage a company's affairs with an awareness of the company's particular circumstances. We guide our proxy voting in this area to help ensure our clients are invested in companies with trustworthy and effective boards. Examples of relevant principals underlying this philosophy include but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Independence</u> – A majority of board members are expected to be substantially independent from the company – not company executives, not key customers or suppliers, and not executives who sit on one another's boards. Non-independent board members should be prohibited from serving on key board committees such as audit, compensation, nominating and governance. In addition, board leadership should be independent of company management either through an independent chair or lead independent director with sufficient authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Board composition and selection</u> – A board must possess the fully array of skills and experience necessary to oversee and guide the company it serves. We expect boards to curate an inventory of necessary skills and experiences and ensure full representation across the board. For new board members, boards should recruit unbiased slates of candidates who reflect the skills needed by the board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Board size</u> – A board should bring a wide range of relevant perspectives, incorporate skills aligning with business needs, and include enough members to ensure sufficient levels of independence for key committees.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Capacity and commitments of board members</u> – Board members should demonstrate a capacity to fulfill their roles and a commitment to the responsible discharge of their duties. This includes attendance of at least 75% of board meetings and participation in no more than four other public company boards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Accountability</u> – As shareholder representatives, board members should be held to a high standard with their performance assessed on a regular basis. As such, shareholders should have the right to vote on the entire slate of directors on an annual basis.

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**Board Oversight of Risk and Strategy**

The philosophy of our active investment teams: The oversight, guidance, and support a board of directors provides to a management team is critical to the execution of its long-term corporate strategy and ultimately, the creation of shareholder value. We expect boards to assist in identifying material risks to the company's strategy, disclosure practices, and execution and to provide risk mitigation insight and monitoring. Examples of relevant principles underlying this philosophy include but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Capital Structure</u> – Increases in authorized shares outstanding are generally accepted if the proposed authorization results in an increase in shares authorized of 10% or less over a 2-year period. Proposals to create, modify, or issue common and preferred stock are generally accepted if the rights of the issuance are not superior to the rights of the current shareholders, subject to the principal that the authorization increase is limited to 10% of less over a 2-year period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Mergers and Acquisitions</u> – We expect boards to actively review potential targets and offers, assessing all such activities with shareholder value creation as the primary consideration. As investors, we recognize all merger and acquisition proposals are unique and should be assessed on their individual merit, including the deal premium, strategic rationale and possibility of competing offers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Auditors</u> – A board of directors should oversee the company's third-party auditor to ensure an independent and accurate assessment of the company's financial position is being portrayed. This should include a regular review of auditor qualifications, independence and competency.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Climate Reporting</u> – We expect boards and managements to assess financially material climate risks to the business and, when relevant, provide the disclosure necessary for a reasonable investor to make informed decisions regarding potential impacts upon shareholder value.

**Board Oversight of Executive Selection and Compensation**

The philosophy of our active investment teams: A key aspect of a board of directors' governance responsibility is the support, selection and assessment of the management team. Boards should hold executives to clear value creation and be willing to make changes to management when shareholder value creation falls short of reasonable potential. Boards should also create and maintain formal succession plans to ensure continuity and minimize key person risk. Examples of relevant principles underlying this philosophy include but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Executive Pay</u> – A board should have a clear philosophy on executive pay and maintain an independent compensation committee focused on attracting and retaining executives who will drive shareholder value over time. Executives' pay and long-term performance should align executives with shareholders through measures of financial performance relative to financial targets aligned with value generation, and the performance of relevant peers. Likewise, we expect the board of directors to be aligned with shareholders through financial incentives and share ownership.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Stock Based Compensation</u> – We support the use of share-based incentive plans intended to increase the share ownership by management and align shareholder interests with management. Such plans should take into consideration the dollar cost of the plans to shareholders and the appropriateness of financial targets included in the plans. However, we believe that retroactive re-pricing of underwater options is indicative of poor corporate governance and will generally vote in opposition to a repricing scheme.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Say on Pay Frequency</u> – In order to ensure alignment between pay and performance, we support annual advisory votes to approve executive compensation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Executive Selection and Succession</u> – We expect a board of directors to carry out a thorough executive selection process considering a range of qualified candidates with a variety of skills and backgrounds. It is ultimately the responsibility of a board to select the candidate they think will best generate long-term value for shareholders.

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**Shareholder Rights and Protections**

The philosophy of our active investment teams: As investors, we view the protection of shareholder rights as integral to proper corporate governance and think major corporate changes require prior shareholder approval. We also recognize there are costs associated with shareholder proposals and think ownership thresholds are appropriate in many circumstances. We oppose all structural impediments to increasing shareholder value.

Examples of relevant principles underlying this philosophy include but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Shareholder Rights Plans "Poison Pills"</u> – We generally oppose the use of poison pills unless a "pill" is approved by shareholders and does not hamper value creation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Supermajority Voting</u> – A majority vote of shareholders should be sufficient to approve items such as bylaws and acquisitions. Supermajority requirements have the potential to erode the rights of minority shareholders and are viewed negatively.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Unequal Voting Rights</u> – We support equal voting rights and think voting power should be allocated in direct proportion to the shareholders' equity ownership. Accordingly, we believe that dual share classes generally present more disadvantages than advantages to long-term investors and will generally vote against proposals to create or continue such structures. Notable exceptions include Real Estate Investment Trusts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Shareholder Rights</u> – We think shareholders generally have the right to nominate directors, call special meetings and act without holding a meeting in certain circumstances. However, we also recognize there is potential for abuse and therefore support reasonable ownership thresholds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• <u>Capital Structure</u> – The decision to issue or repurchase stock, issue debt or split shares is made by a board presumably with the intent of improving the overall capital structure, investing in growth, reaching a broader investment audience, enhancing shareholder value, and/or managing challenging liquidity/leverage circumstances. As such, we review these decisions on a case-by-case basis taking into consideration the degree of dilution and impact on liquidity. Proposals to create, modify or issue common and preferred stock are generally accepted if the rights of the issuance are not superior to the rights of current shareholders subject to the principal that an authorization increase is limited to 10% or less over a 2-year period.

**A Note on Shareholder Proposals**

Shareholder Proposals are often company specific making a one-size fits all approach to voting suboptimal. For that reason, shareholder proposals are escalated to the active investment teams for case-by-case analysis and decision making. Voting decisions are made by weighing the financial materiality of the proposal against any opposing rationale from company management, with the ultimate determination driven by the economic best interest of shareholders. While votes are generally cast consistently across the investment teams, there may be situations where portfolio managers holding the same security disagree on what is in the best interests of their shareholders.

**Passive Strategy Voting**

Our passively managed strategies follow the same voting philosophy as our actively managed strategies. In the absence of a determination by our active investment teams, our passive strategies will typically vote in alignment with management. We think managements and boards of directors should have comprehensive insights into the company's long-term strategy and operations. This insight puts them in a sound position to determine the financial materiality of proposals and their alignment with the economic interest of shareholders in the absence of an evaluation by our active teams.

We execute this philosophy through our Proxy Voting Guidelines as overseen by our Proxy Voting committee. Strategies are aligned to one of our custom Guidelines - Base, Sustainable and Board Aligned. We provide clients with transparency into our voting history and rationale via our interactive website. In most strategies, clients may also choose to vote their own shares or request a custom set of vote guidelines aligning with their own specific requirements.

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**ALLIANCEBERNSTEIN**

Proxy Voting and Governance Policy

March 2025

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**Table of Contents**

**[Introduction](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[3](#i9cec8355cfa640da8819208ff8980cc7_1)**

[Research](#i9cec8355cfa640da8819208ff8980cc7_1)[Underpins](#i9cec8355cfa640da8819208ff8980cc7_1)[Decision](#i9cec8355cfa640da8819208ff8980cc7_1) [Making](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[3](#i9cec8355cfa640da8819208ff8980cc7_1)

[Research](#i9cec8355cfa640da8819208ff8980cc7_1) [Services](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[3](#i9cec8355cfa640da8819208ff8980cc7_1)

[Engagement](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[4](#i9cec8355cfa640da8819208ff8980cc7_1)

[Escalation](#i9cec8355cfa640da8819208ff8980cc7_1)[Strategies](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[4](#i9cec8355cfa640da8819208ff8980cc7_1)

**[Proxy](#i9cec8355cfa640da8819208ff8980cc7_1)[Voting](#i9cec8355cfa640da8819208ff8980cc7_1) [Guidelines](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[4](#i9cec8355cfa640da8819208ff8980cc7_1)**

[Shareholder](#i9cec8355cfa640da8819208ff8980cc7_1)[Proposal](#i9cec8355cfa640da8819208ff8980cc7_1)[Assessment](#i9cec8355cfa640da8819208ff8980cc7_1)[Framework](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)**[4](#i9cec8355cfa640da8819208ff8980cc7_1)**

**[Director](#i9cec8355cfa640da8819208ff8980cc7_1) [Elections](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[5](#i9cec8355cfa640da8819208ff8980cc7_1)**

[Majority](#i9cec8355cfa640da8819208ff8980cc7_1)[Vote](#i9cec8355cfa640da8819208ff8980cc7_1)[Standard](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[5](#i9cec8355cfa640da8819208ff8980cc7_1)

[Board](#i9cec8355cfa640da8819208ff8980cc7_1)[Leadership](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[6](#i9cec8355cfa640da8819208ff8980cc7_1)

[Classified](#i9cec8355cfa640da8819208ff8980cc7_1) [Board](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[6](#i9cec8355cfa640da8819208ff8980cc7_1)

[Board](#i9cec8355cfa640da8819208ff8980cc7_1)[Capacity](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[6](#i9cec8355cfa640da8819208ff8980cc7_1)

[Board](#i9cec8355cfa640da8819208ff8980cc7_1)[Diversity](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[6](#i9cec8355cfa640da8819208ff8980cc7_1)

**[Compensation](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[7](#i9cec8355cfa640da8819208ff8980cc7_1)**

[Executive](#i9cec8355cfa640da8819208ff8980cc7_1)[Compensation](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[7](#i9cec8355cfa640da8819208ff8980cc7_1)

[Equity](#i9cec8355cfa640da8819208ff8980cc7_1)[Compensation](#i9cec8355cfa640da8819208ff8980cc7_1) [Plans](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[8](#i9cec8355cfa640da8819208ff8980cc7_1)

[Director](#i9cec8355cfa640da8819208ff8980cc7_1)[Compensation](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[8](#i9cec8355cfa640da8819208ff8980cc7_1)

**[Auditors](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[8](#i9cec8355cfa640da8819208ff8980cc7_1)**

**[Transactions](#i9cec8355cfa640da8819208ff8980cc7_1)[and](#i9cec8355cfa640da8819208ff8980cc7_1)[Special](#i9cec8355cfa640da8819208ff8980cc7_1) [Situations](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[8](#i9cec8355cfa640da8819208ff8980cc7_1)**

[Transactions,](#i9cec8355cfa640da8819208ff8980cc7_1)[Restructurings,](#i9cec8355cfa640da8819208ff8980cc7_1)[Mergers](#i9cec8355cfa640da8819208ff8980cc7_1)[and](#i9cec8355cfa640da8819208ff8980cc7_1)[Acquisitions](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[8](#i9cec8355cfa640da8819208ff8980cc7_1)

[Shareholder](#i9cec8355cfa640da8819208ff8980cc7_1)[Rights](#i9cec8355cfa640da8819208ff8980cc7_1) [Plans](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[9](#i9cec8355cfa640da8819208ff8980cc7_1)

**[Shareholder](#i9cec8355cfa640da8819208ff8980cc7_1) [Rights](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[9](#i9cec8355cfa640da8819208ff8980cc7_1)**

[Capital](#i9cec8355cfa640da8819208ff8980cc7_1)[Structure](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[9](#i9cec8355cfa640da8819208ff8980cc7_1)

[Proxy](#i9cec8355cfa640da8819208ff8980cc7_1) [Access](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[9](#i9cec8355cfa640da8819208ff8980cc7_1)

[Majority](#i9cec8355cfa640da8819208ff8980cc7_1)[Vote](#i9cec8355cfa640da8819208ff8980cc7_1)[Standard for](#i9cec8355cfa640da8819208ff8980cc7_1)[Charter & Bylaw Amendments](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[9](#i9cec8355cfa640da8819208ff8980cc7_1)

[Special](#i9cec8355cfa640da8819208ff8980cc7_1) [Meetings](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[10](#i9cec8355cfa640da8819208ff8980cc7_1)

[Written](#i9cec8355cfa640da8819208ff8980cc7_1) [Consent](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[10](#i9cec8355cfa640da8819208ff8980cc7_1)

**[Material](#i9cec8355cfa640da8819208ff8980cc7_1)[Environmental](#i9cec8355cfa640da8819208ff8980cc7_1)[and](#i9cec8355cfa640da8819208ff8980cc7_1)[Social](#i9cec8355cfa640da8819208ff8980cc7_1) [Issues](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[10](#i9cec8355cfa640da8819208ff8980cc7_1)**

[Climate](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[10](#i9cec8355cfa640da8819208ff8980cc7_1)

[Biodiversity](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[11](#i9cec8355cfa640da8819208ff8980cc7_1)

[Political](#i9cec8355cfa640da8819208ff8980cc7_1) [Spending](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[11](#i9cec8355cfa640da8819208ff8980cc7_1)

[Human](#i9cec8355cfa640da8819208ff8980cc7_1)[Capital](#i9cec8355cfa640da8819208ff8980cc7_1) [Management](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[11](#i9cec8355cfa640da8819208ff8980cc7_1)

------

**[Conflicts](#i9cec8355cfa640da8819208ff8980cc7_1)[of](#i9cec8355cfa640da8819208ff8980cc7_1) [Interest](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[12](#i9cec8355cfa640da8819208ff8980cc7_1)**

[Introduction](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[12](#i9cec8355cfa640da8819208ff8980cc7_1)

[Adherence](#i9cec8355cfa640da8819208ff8980cc7_1)[to](#i9cec8355cfa640da8819208ff8980cc7_1)[Stated Proxy Voting](#i9cec8355cfa640da8819208ff8980cc7_1) [Policies](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[12](#i9cec8355cfa640da8819208ff8980cc7_1)

[Disclosure](#i9cec8355cfa640da8819208ff8980cc7_1)[of](#i9cec8355cfa640da8819208ff8980cc7_1) [Conflicts](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[12](#i9cec8355cfa640da8819208ff8980cc7_1)

[Potential](#i9cec8355cfa640da8819208ff8980cc7_1) [Conflicts](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[13](#i9cec8355cfa640da8819208ff8980cc7_1)

[Handling](#i9cec8355cfa640da8819208ff8980cc7_1)[Potential Conflicts of](#i9cec8355cfa640da8819208ff8980cc7_1) [Interest](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[13](#i9cec8355cfa640da8819208ff8980cc7_1)

[Review](#i9cec8355cfa640da8819208ff8980cc7_1)[of](#i9cec8355cfa640da8819208ff8980cc7_1)[Third-Party](#i9cec8355cfa640da8819208ff8980cc7_1)[Proxy](#i9cec8355cfa640da8819208ff8980cc7_1)[Service](#i9cec8355cfa640da8819208ff8980cc7_1) [Vendors](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[13](#i9cec8355cfa640da8819208ff8980cc7_1)

[Confidential](#i9cec8355cfa640da8819208ff8980cc7_1) [Voting](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[14](#i9cec8355cfa640da8819208ff8980cc7_1)

[A](#i9cec8355cfa640da8819208ff8980cc7_1)[Note](#i9cec8355cfa640da8819208ff8980cc7_1)[Regarding AB's](#i9cec8355cfa640da8819208ff8980cc7_1) [Structure](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[14](#i9cec8355cfa640da8819208ff8980cc7_1)

**[Voting](#i9cec8355cfa640da8819208ff8980cc7_1)[Transparency](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[14](#i9cec8355cfa640da8819208ff8980cc7_1)**

**[Record](#i9cec8355cfa640da8819208ff8980cc7_1)[Keeping](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[15](#i9cec8355cfa640da8819208ff8980cc7_1)**

[Proxy](#i9cec8355cfa640da8819208ff8980cc7_1)[Voting and Governance](#i9cec8355cfa640da8819208ff8980cc7_1) [Policy](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[15](#i9cec8355cfa640da8819208ff8980cc7_1)

[Proxy](#i9cec8355cfa640da8819208ff8980cc7_1)[Statements Received Regarding Clients'](#i9cec8355cfa640da8819208ff8980cc7_1)[Securities](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[15](#i9cec8355cfa640da8819208ff8980cc7_1)

[Records](#i9cec8355cfa640da8819208ff8980cc7_1)[of](#i9cec8355cfa640da8819208ff8980cc7_1)[Votes](#i9cec8355cfa640da8819208ff8980cc7_1)[Cast](#i9cec8355cfa640da8819208ff8980cc7_1)[on](#i9cec8355cfa640da8819208ff8980cc7_1)[Behalf](#i9cec8355cfa640da8819208ff8980cc7_1)[of](#i9cec8355cfa640da8819208ff8980cc7_1) [Clients](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[15](#i9cec8355cfa640da8819208ff8980cc7_1)

[Pre-Disclosure](#i9cec8355cfa640da8819208ff8980cc7_1)[of](#i9cec8355cfa640da8819208ff8980cc7_1)[Vote](#i9cec8355cfa640da8819208ff8980cc7_1)[Intentions on Select](#i9cec8355cfa640da8819208ff8980cc7_1) [Proposals](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[15](#i9cec8355cfa640da8819208ff8980cc7_1)

[Documents](#i9cec8355cfa640da8819208ff8980cc7_1)[Prepared](#i9cec8355cfa640da8819208ff8980cc7_1)[by](#i9cec8355cfa640da8819208ff8980cc7_1)[AB](#i9cec8355cfa640da8819208ff8980cc7_1)[that](#i9cec8355cfa640da8819208ff8980cc7_1)[Are](#i9cec8355cfa640da8819208ff8980cc7_1)[Material to](#i9cec8355cfa640da8819208ff8980cc7_1)[Voting](#i9cec8355cfa640da8819208ff8980cc7_1) [Decisions](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[15](#i9cec8355cfa640da8819208ff8980cc7_1)

**[Proxy](#i9cec8355cfa640da8819208ff8980cc7_1)[Voting](#i9cec8355cfa640da8819208ff8980cc7_1)[Procedures](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[15](#i9cec8355cfa640da8819208ff8980cc7_1)**

[Voting](#i9cec8355cfa640da8819208ff8980cc7_1)[Administration](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[15](#i9cec8355cfa640da8819208ff8980cc7_1)

[Share](#i9cec8355cfa640da8819208ff8980cc7_1)[Blocking](#i9cec8355cfa640da8819208ff8980cc7_1)[and Abstaining](#i9cec8355cfa640da8819208ff8980cc7_1)[from](#i9cec8355cfa640da8819208ff8980cc7_1)[Voting Client](#i9cec8355cfa640da8819208ff8980cc7_1) [Securities](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[16](#i9cec8355cfa640da8819208ff8980cc7_1)

[Loaned](#i9cec8355cfa640da8819208ff8980cc7_1) [Securities](#i9cec8355cfa640da8819208ff8980cc7_1)[&nbsp;&nbsp;&nbsp;&nbsp;](#i9cec8355cfa640da8819208ff8980cc7_1)[16](#i9cec8355cfa640da8819208ff8980cc7_1)

------

**Introduction**

AllianceBernstein L.P.'s ("AB," "we," "us," "our" and similar terms) mission is to work in our clients' best financial interests to deliver better investment outcomes through differentiated research insights and innovative portfolio solutions. As a fiduciary and investment adviser, we place the interests of our clients first and treat all our clients fairly and equitably, and we have an obligation to responsibly allocate, manage and oversee their investments to seek sustainable, long-term shareholder value.

AB has authority to vote proxies relating to securities in certain client portfolios and, accordingly, AB's fiduciary obligations extend to AB's exercise of such proxy voting authority for each client AB has agreed to exercise that duty. AB's general policy is to vote proxy proposals, amendments, consents or resolutions relating to client securities, including interests in private investment funds, if any (collectively, "proxies"), in a manner that serves the best financial interests of each respective client as determined by AB in its discretion, after consideration of the relevant clients' investment strategies, and in accordance with this Proxy Voting and Governance Policy ("Proxy Voting and Governance Policy" or "Policy") and the operative agreements governing the relationship with each respective client ("Governing Agreements"). This Policy outlines our principles for proxy voting, includes a wide range of issues that often appear on voting ballots, and applies to all of AB's internally managed assets, globally. It is intended for use by those involved in the proxy voting decision-making process and those responsible for the administration of proxy voting ("Investment Stewardship Team"), to ensure that this Policy and its procedures are implemented consistently.<sup>1</sup>

This Policy forms part of a suite of policies and frameworks including **AB's Stewardship Statement** (https://www.alliancebernstein.com/content/dam/corporate/corporate-pdfs/ab-global-stewardship-statement-and-report.pdf) that outline our approach to investment stewardship. Proxy voting is an integral part of this process, enabling us to support sound corporate governance practices, strong shareholder rights, transparent disclosures, and encourage effective oversight of material issues.

This Policy is overseen by the Proxy Voting and Governance Committee ("Proxy Voting and Governance Committee" or "Committee"), which provides oversight and includes senior representatives from Investments, Legal and Operations. It is the responsibility of the Committee to evaluate and maintain proxy voting procedures and guidelines, to evaluate proposals and issues not covered by these guidelines, to consider changes in the Policy, and to review the Policy no less frequently than annually. In addition, the Committee meets at least three times a year and as necessary to address special situations.

**Research Underpins Decision Making**

As a research-driven firm, we approach proxy voting with the same commitment to rigorous research and engagement that we apply to all our investment activities. The different investment philosophies applied by our investment teams may occasionally result in different conclusions being drawn for certain proposals. In turn, our votes for some proposals may vary from issuer to issuer, while still aligning with our goal of maximizing the long-term value of securities in our clients' portfolios.

For accounts where proxy voting is directed by clients or newly acquired subsidiary companies, voting decisions may deviate from this Policy. To the extent there are any inconsistencies between this Policy and a client's Governing Agreements, the Governing Agreements shall supersede this Policy. We do not offer different versions of our Proxy Voting and Governance Policy.

**Research Services**

To facilitate the efficient and accurate voting of our client's securities, we subscribe to research services from vendors such as Institutional Shareholder Services Inc. ("ISS") and Glass Lewis. These research materials are used for informational purposes alongside company filings, and AB's voting decisions are always guided by AB's Proxy Voting and Governance Policy. Our investment professionals can access these research and informational materials at any time.&nbsp;&nbsp;&nbsp;&nbsp;

<sup>1</sup> Please note that while this Policy is intended to be applied globally, in certain jurisdictions in which we operate, a limited number of votes may vary due to local rules and regulations.

------

**Engagement**

In evaluating proxy issues and determining our votes, we seek the perspective and expertise of various relevant parties. Internally, the Investment Stewardship Team may consult the Committee, Chief Investment Officers, Portfolio Managers, and/or Research Analysts across our equities platform. By partnering with investment professionals, we are empowered to incorporate company-specific fundamental insights into our vote decisions.

Externally, we may engage with companies in advance of their Annual General Meeting, and throughout the year. We believe engagement provides the opportunity to share our philosophy, and more importantly, affect positive changes which we believe will drive shareholder value. In addition, we may engage with shareholder proposal proponents and other stakeholders to understand different viewpoints and objectives.

**Escalation Strategies**

Proxy voting and engagements work in conjunction to raise and escalate investor concerns to companies. In cases where we determine that the issuer's behavior isn't aligned with our clients' best financial interests, we may escalate our voting and engagement by taking actions such as voting against the relevant directors. The materiality of the issue and the responsiveness of management will guide our approach which is outlined in the AB Stewardship Statement.

**Proxy Voting Guidelines**

Our proxy voting guidelines are both principles-based and rules-based. Subject to client guidelines, we adhere to a core set of principles described in this Policy. We assess each proxy proposal within the framework of these principles, with our ultimate "litmus test" being what we view as most likely to maximize long-term shareholder value. We believe that authority and accountability for setting and executing corporate policies, goals and compensation should generally rest with a company's board of directors and senior management. In return, we support strong investor rights that allow shareholders to hold directors and management accountable should they fail to act in the best interests of shareholders.

We generally vote proposals in accordance with these guidelines; however, we may deviate from these guidelines if we believe that deviating from our stated Policy is necessary to maximize long-term shareholder value or as otherwise warranted by the specific facts and circumstances of an investment. While our Policy is broadly applicable, we may make exceptions to these guidelines for non-operating companies such as closed-end funds. We will evaluate on a case-by-case basis any proposal not specifically addressed by these guidelines, whether submitted by management or shareholders, always keeping in mind our fiduciary duty to make voting decisions that are in our clients' best interests.

**Shareholder Proposal Assessment Framework**

AB's commitment to maximizing the long-term value of clients' portfolios drives how we analyze shareholder proposals. Shareholder proposals often address environmental, social and governance ("ESG") disclosures, which we believe can in some cases help improve the accuracy of our valuation of companies. We think it is in our clients' best interests to incorporate a comprehensive set of risks and opportunities, including but not limited to material ESG issues, from a long-term shareholder value perspective. The evaluation of a proposal that addresses an ESG issue will consider (among other things) the following core factors, as necessary:

-The materiality of the mentioned ESG issue for the company's business

-The company's current practice, policy, and framework

-The prescriptiveness of the proposal—does the shareholder make a request that unreasonably burdens management?

-The context of the shareholder proposal—is the proponent tied to any particular interest group(s)? Does the proposal aim to promote the interest of the shareholders or group that they are associated with?

-How does the proposal add value for the shareholders?

------

We do not vote in favor of all ESG-related proposals. This shareholder proposal assessment framework applies to all proposals slated by shareholders, globally.

**Director Elections**

AB's approach to voting on director elections is grounded in the belief that directors should represent shareholder interests and ensure management is maximizing long-term shareholder value. We generally vote in favor of the management-proposed slate of directors, but we consider a number of factors, including local market best practice, when making our decision. Each company's board of directors has a duty to act in the best interest of the company's shareholders at all times. These interests are best served by having directors who bring objectivity to the company and are free from potential conflicts of interests. Accordingly, we believe that companies should have a majority of independent directors and independent key committees. We will incorporate local market regulation and corporate governance codes into our decision making, though we may support requirements that surpass market regulation and corporate governance codes if we believe they will improve corporate governance practices.

We consider a director to be independent if they meet the criteria for independence set forth by the primary exchange or the best practice code in the country where the company is domiciled. We also take into account affiliations, related party transactions, and prior service to the company.

We believe that directors have a duty to respond to shareholder actions that have received significant shareholder support. We may vote against directors who fail to act on key issues. We oppose directors who fail to attend at least 75% of board meetings within a given year without a reasonable excuse. We prioritize transparency and disclosure in our analysis of director elections. If there is insufficient information about nominees disclosed in the proxy statement, we may abstain or vote against.

We also take into account compensation, audit, and governance practices when evaluating directors. If a company lacks a formal key committee or has demonstrated poor practices in these areas, we may vote against relevant directors, which may include committee chairs, committees as a whole, or the full board in cases of multi-year concerns.

Finally, we are committed to engaging with company management to resolve issues that arise. We may do so through phone, written, virtual or in-person communication until a satisfactory resolution is reached.

**Majority Vote Standard**

Sound corporate governance requires that shareholders have a meaningful say in the company's affairs. We believe that electing directors by a majority of votes cast at an annual meeting is a better method than plurality voting. Under plurality voting standards, a director could be elected by a single affirmative vote even if a majority of shareholders withheld support.

AB also views majority voting provisions as beneficial to director accountability. Therefore, we generally support companies amending their by-laws to require director nominees be elected by an affirmative vote

of a majority of the votes cast. However, we recognize that in contested elections where the number of nominees exceeds the number of board seats, a carve-out should be provided to allow for plurality voting. While we generally prefer a majority vote standard, we may take a case-by-case approach if the issuer is a non-operating company such as closed-end funds.

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**Board Leadership**

We believe there can be benefits to an executive chairman and to having the positions of chairman and CEO combined as well as split. When the chair is non-independent, the company must have sufficient counter-balancing governance in place, generally through a strong lead independent director. AB therefore generally supports the establishment of a lead independent director if the chairman is non- independent. We believe that having a robust lead independent director role with clearly defined duties and responsibilities, such as the authority to call meetings and approve agendas, is an effective way to balance governance.

If a company already has a lead independent director in place with robust responsibilities, we will generally oppose proposals that require an independent board chairman, unless there are additional concerns regarding board leadership or broader corporate governance.

**Classified Board**

Typically, a classified board is divided into three classes, each holding office for a term of three years, with only a portion of the board being elected or replaced each year. We generally favor declassified boards, but we may take a case-by-case approach if certain conditions are met, such as an adequate sunset provision, a justifiable financial reason, or if the issuer is a non-operating company such as closed- end funds.

**Board Capacity**

We believe that assessing each nominee's capacity for a board seat is essential for ensuring meaningful board oversight of management. Nominees who are "over-boarded", or have too many outside board commitments, may be unable to dedicate sufficient time toward their board oversight responsibilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Non-Executive Directors:** AB generally votes against the appointment of non-executive directors who serve on more than four public company boards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Active CEOs:** AB generally votes against the appointment of active CEOs who serve on more than two public company boards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Active CEO of the Company Under Voting Consideration:** For CEOs of the company under consideration, AB generally votes against their appointment if they serve on more than three public company boards.

**Board Diversity**

Diversity is an important element of assessing a board's composition, as it promotes a wider range of perspectives to be considered for companies to both strategize and mitigate risks. In line with this view, several European countries legally require board-level gender diversity at publicly listed companies. We recommend boards develop, as part of their regular refreshment process, a framework for identifying qualified diverse candidates for all open board positions. We believe diversity is multi-faceted and should incorporate a broad range of factors in order to promote diversity of thought, such as gender, ethnicity, nationality, professional experience, age, and tenure.

Taking into account a board's size as well as regional considerations, AB may vote against the nominating committee chair, or a relevant incumbent board member such as a nominating committee member if the chair is not up for election, when the board lacks sufficient diversity, unless there are mitigating factors (e.g. the board has articulated plans to diversify board membership, or has made recent improvements). AB generally looks to gender representation and racial/ethnic representation as indicators of board-level diversity, given these are well disclosed and standardized metrics.

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**Compensation**

Compensation policies play a critical role in attracting, retaining, and motivating executives, directors, and employees. Incentives should be aligned with shareholder interests to facilitate long-term value creation and sustainable performance.

**Executive Compensation**

It is crucial to establish a direct correlation between variable pay and the company's operational and financial performance, through metrics that are challenging and align with the company's strategy. Compensation plans are often complex and are a major corporate expense, so we evaluate them carefully and on a case-by-case basis. In all cases, however, we assess each proposed executive compensation plan within the framework of four guiding principles, each of which ensures a company's compensation plan helps to align the long-term interests of management with shareholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Valid measures of business performance tied to the firm's strategy and shareholder value creation, which are clearly articulated and incorporate appropriate time periods, should be utilized;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compensation costs should be managed in the same way as any other expense;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compensation should reflect management's handling, or failure to handle, any recent social, environmental, governance, ethical or legal issue that had a material adverse financial or reputational effect on the company and;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In granting awards, management should clearly exhibit integrity and a rigorous decision-making process.

Further, we believe that compensation plans should be sufficiently long-term oriented. Long-term incentive plans should adhere to a minimum of three-year vesting periods and clearly target long-term financial goals. We are generally unsupportive of special bonuses that are not explicitly tied to a company's financial performance or lack multi-year vesting periods. If a retention grant is awarded, we expect companies to provide a rationale detailing how the award aligns with business needs and overall strategy. In cases where the compensation committee has exercised discretion to adjust pay outcomes, we expect a detailed justification and explanation of the method used to determine the adjustment.

Additionally, we expect disclosure on how the revised outcome is consistent with the shareholders' interests.

We believe that compensation plans should include clawback provisions that require executives to relinquish their awards if their compensation was based on erroneous financial statements or deceitful business practices.

We may oppose plans which include, and directors who establish, compensation plan provisions deemed to be poor practice such as automatic acceleration of equity, or single-triggered, in the event of a change in control. Although votes on compensation plans are by nature only broad indications of shareholder views, they do lead to more compensation-related dialogue between management and shareholders and help ensure that management and shareholders meet their common objective: maximizing shareholder value.

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**Equity Compensation Plans**

Equity compensation plans (or "omnibus stock plans") are intended to align the interests of employees and executives with those of shareholders by providing stock-based incentives. While we generally support the use of equity in compensation plans, we assess each plan on a case-by-case basis. Our evaluation criteria include the overall cost of the plan, potential dilution to shareholders, historical burn rates, and the specific design features of the plan. We may vote against equity compensation plans that contain provisions that are misaligned with shareholder interests, such as the ability to reprice options without shareholder approval or the inclusion of evergreen provisions.

**Director Compensation**

For non-executive directors, we believe that compensation should be structured in such a way that it does not compromise their independence. We will generally oppose performance-based variable remuneration for non-executive directors.

**Auditors**

We believe that the company is in the best position to choose its accounting firm, and we generally support management's recommendation. We recognize that there may be potential conflicts when a company's independent auditors perform substantial non-audit related services for the company.

Therefore, we consider the proportion of non-audit fees to total fees and other factors like auditor tenure to assess independence. Excessive non-audit fees may lead us to vote against the auditor and/or audit committee members. In determining what is excessive we exclude non-audit fees related to extraordinary events such as IPOs, bankruptcy emergence, and spin-offs. Additionally, we may vote against or abstain if the audit firm is not disclosed, considering local market practices.

In some markets, companies are required to submit their financial statements for shareholder approval. We generally approve financial statements unless there are reasons to vote otherwise, such as if the information is not made available prior to the meeting. In markets requiring the election of internal statutory auditors (e.g., Japan), we generally support management's nominees if they meet regulatory requirements. However, we may vote against nominees who are designated independent statutory auditors but serve as executives of a subsidiary or affiliate of the issuer, or if there are other reasons to question their independence. We review proposals to limit auditor liability on a case-by-case basis, considering whether such a provision is necessary to secure appointment and whether it helps to maximize long-term shareholder value.

**Transactions and Special Situations**

**Transactions, Restructurings, Mergers and Acquisitions**

Proposals requesting shareholder approval for corporate restructurings, merger and acquisitions, and spin-offs are evaluated on a case-by-case basis. Our primary objective in assessing and voting on these proposals is to maximize long-term shareholder value. We consider a multitude of factors that could impact the company's future performance and shareholder returns, including the board's rationale behind the transaction, the potential financial benefits and risks, the alignment with the company's long-term strategic goals, and the overall integrity of the transaction process. We may abstain from voting on transactions in instances where there is insufficient information.

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**Shareholder Rights Plans**

Our approach to voting on shareholder rights plans, or poison pills, is grounded in our commitment to protecting shareholder rights and maximizing long-term value. Accordingly, we assess these proposals on a case-by-case basis. We will oppose poison pills that unreasonably seek to impede takeovers or entrench management. We may support proposals which protect shareholders' right to consider and potentially accept a compelling offer. Additionally, we may support net operating loss rights plans when the protection of a company's tax assets is material to its financial health and future value. We generally support shareholder proposals that require the company to submit a shareholder rights plan to a shareholder vote, though may take a case-by-case approach if the issuer is a non-operating company such as closed-end funds.

**Shareholder Rights**

**Capital Structure**

The one share, one vote principle—that voting power is proportional to an one's economic interest— is preferred to ensure the board is accountable to shareholders. AB's general expectation of companies with multi-class equity structures carrying unequal voting rights (or "supervoting shares") is to attach safeguards for minority shareholders when appropriate and in a cost-effective manner, which may include a sunset provision or periodic shareholder reauthorizations. We expect boards to routinely review existing multi-class share structures and articulate why the structure is beneficial for long-term shareholders. If a multi-class share structure is in place without adequate safeguards, AB will generally vote against relevant directors.

With that backdrop, we acknowledge that multi-class structures may be beneficial for a period of time for certain companies, allowing management to focus on longer-term value creation which benefits all shareholders. Accordingly, AB may refrain from voting against relevant directors if the multi-class capital structure is subject to a formal sunset provision, or if company-specific conditions warrant it.

**Proxy Access**

Proxy access allows "qualified shareholders" to nominate directors. Our voting stance typically favors proposals for proxy access that adhere to the 2010 SEC proposal (since vacated) which allowed a single shareholder, or group of shareholders, who hold at least 3% of the voting power for at least three years continuously to nominate up to 25% of the current board seats, or two directors, for inclusion in the subject company's annual proxy statement alongside management nominees. We may vote against proposals that include requirements that are stricter than the SEC's framework including implementation restrictions and against individual board members, or entire boards, who exclude from their ballot properly submitted shareholder proxy access proposals or compete against shareholder proxy access proposals with stricter management proposals on the same ballot. We will generally vote in favor of proposals that seek to amend an existing right to more closely align with the SEC framework. We will evaluate on a case-by-case basis proposals with less stringent requirements than the vacated SEC framework.

**Majority Vote Standard for Charter & Bylaw Amendments**

We generally favor the implementation of simple majority vote requirements for charter and bylaw amendments. This means that a proposal would only need to receive a majority of votes cast in order to be approved. We believe that this approach promotes greater shareholder accountability and ensures that the will of the majority is reflected in important decisions affecting the company. As such, we will generally vote for proposals to reduce supermajority voting requirements, though may take a case-by- case approach if the issuer is a non-operating company such as closed-end funds.

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**Special Meetings**

We are generally supportive of the right for shareholders to call special meetings, which allows shareholders to take action on certain matters that arise between regularly scheduled annual meetings. This right may apply only if a shareholder, or a group of shareholders, owns a specified percentage as defined by the relevant company bylaws.

We recognize the importance of the right of shareholders to remove poorly performing directors, respond to takeover offers and take other actions without having to wait for the next annual meeting. However, we also believe it is important to protect companies and shareholders from nuisance proposals. We further believe that striking a balance between these competing interests will maximize shareholder value. We believe that encouraging active share ownership among shareholders generally is beneficial to shareholders and helps maximize shareholder value. Accordingly, we will generally support proposals to establish shareholders' right to call a special meeting if one is not already in place. When evaluating proposals to reduce the existing special meeting right threshold, we will assess the potential abuse of the right based on the company's current share ownership structure, and whether the request goes beyond market practice.

**Written Consent**

Action by written consent enables a large shareholder or group of shareholders to initiate votes on corporate matters prior to the annual meeting. We believe this is a fundamental shareholder right and, accordingly, will generally support shareholder proposals seeking to restore this right. However, in cases where a company has a majority shareholder or group of related majority shareholders with majority economic interest, we may oppose proposals seeking to restore this right as there is a potential risk of abuse by the majority shareholder or group of majority shareholders. We may also vote against the proposal if the company provides shareholders a right to call special meetings with an ownership threshold of 15% or below in absence of material restrictions, as we believe that shareholder access rights should be considered from a holistic view rather than promoting all possible access rights that may impede one another in contrast to long-term shareholder value.

**Material Environmental and Social Issues**

**Climate**

Proposals addressing climate change concerns are plentiful and their scope varies. Climate change increasingly receives investor attention as a potential material risk to the sustainability of a wide range of business activities. These proposals may include emissions standards or reduction targets, quantitative goals, and impact assessments. We evaluate these proposals on a case-by-case basis, taking into account the materiality of the issue to the business and whether the proposal is of added benefit to shareholders. We will additionally consider company specific context as well as our ongoing research and engagements for evaluating the company's existing policies and practices.

For proposals related to climate change, we will carefully assess the company's current policies/disclosures and its incorporation of national standards and best practices. In addition, we will evaluate the potential enactment of new regulations, as well as any investment risk related to the specific issue.

For issuers with material exposure to climate risk, AB assesses the climate risk management strategy by considering factors such as, but not limited to:

**Emissions Metrics and Targets**

-Does the company have emissions metrics and targets in place for Scopes 1 and 2 emissions?

**Climate Risk Management**

-Does the company perform scenario analysis that includes the use of a widely recognized, scientifically based 1.5 degree scenario?

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**Governance**

-Does the board provide oversight on the issuer's climate change strategy?

-Has the company incurred any recent material failures, or been involved in any controversies, related to managing climate-related risk?

**Disclosure**

-Does the company disclose its exposure to climate risk via the framework developed by the Taskforce on Climate related Financial Disclosure?

**Biodiversity**

Companies are increasingly recognizing the importance of managing biodiversity and nature-related factors to generate long-term financial returns for shareholders. This can be achieved by implementing appropriate risk oversight and establishing relevant metrics and targets to manage their reliance on, impact on, and use of natural capital. Companies—particularly those that have significant impacts on local environments or have supply chains exposed to locations with biodiversity-related risk—should disclose how they integrate these factors into their strategy and how they manage material risks and opportunities relating to biodiversity. Additionally, companies should consider engaging with stakeholders, including local communities and conservation organizations, to ensure that their activities do not have a negative impact on biodiversity, which could potentially cause negative reputational or financial risks.

Accordingly, we will vote on proposals related to biodiversity on a case-by-case basis.

**Political Spending**

We believe that increased transparency in political contributions and lobbying expenses is essential for ensuring accountability and promoting responsible corporate citizenship. As such, we generally vote in favor of proposals that request increased disclosure of these expenses, including those paid to trade organizations and political action committees at the federal, state, or local level. By doing so, we can better understand how a company is using its resources to influence political decisions and ensure that these activities align with its stated values and principles and are in the best interests of shareholders. Increased transparency can also help to mitigate reputational risks and promote public trust in the company. We believe that companies have a responsibility to disclose their political contributions and lobbying expenses to their shareholders and the public.

**Human Capital Management**

Human capital management is a critical component of a company's long-term success. Best practices in this area include considering diversity, equity, and inclusion in different aspects of the business, from hiring and promotion to training and development. Companies should also provide fair compensation and benefits, as well as opportunities for career growth and advancement. Additionally, companies should prioritize employee health and safety, both physical and mental, and provide a supportive work environment that fosters collaboration and innovation. Effective communication and engagement with employees is also essential for building a strong corporate culture and ensuring that employees feel valued and heard. By prioritizing human capital management, companies can attract and retain top talent, foster innovation and creativity, and ultimately drive long-term value for shareholders. We will vote case- by-case on proposals related to human capital management considering a company's current practices, policies and disclosures.

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**Conflicts of Interest**

**Introduction**

As a fiduciary, we must always act in our clients' best financial interests. We strive to avoid even the appearance of a conflict that may compromise the trust our clients have placed in us, and we insist on strict adherence to fiduciary standards and compliance with all applicable federal and state securities laws. We have adopted a comprehensive Code of Business Conduct and Ethics ("Code") to help us meet these obligations. As part of this responsibility and as expressed throughout the Code, we place the interests of our clients first and attempt to mitigate any perceived or actual conflicts of interest.

AB recognizes that potentially material conflicts of interest arise when we engage with a company or vote a proxy solicited by an issuer that sponsors a retirement plan we manage (or administer), that distributes AB-sponsored mutual funds, or with which AB or one or more of our employees have another business or personal relationship, and that such conflicts could affect how we vote on the issuer's proxy. Similarly, potentially material conflicts of interest arise when engaging with and deciding how to vote on a proposal sponsored or supported by a shareholder group that is a client. In order to address any perceived or actual conflict of interest, the procedures set forth below (see Handling Potential Conflicts of Interest section below) have been established for use when we encounter a potential conflict to ensure that our engagement activities and voting decisions are in our clients' best interest consistent with our fiduciary duties and seek to maximize shareholder value.

**Adherence to Stated Proxy Voting Policies**

Subject to client guidelines, votes generally are cast in accordance with this Policy. In situations where our Policy involves a case-by-case assessment, the following sections provide criteria that will guide our decision. In situations where our Policy on a particular issue involves a case-by-case assessment and the vote cannot be clearly decided by an application of our stated Policy, a member of the Committee or his/her designee will make the voting decision in accordance with the basic principle of our Policy to vote proxies with the intention of maximizing the value of the securities in our client accounts. In these situations, the voting rationale must be documented either on the voting platform of our proxy services vendor, by retaining relevant emails or another appropriate method. Where appropriate, the views of investment professionals are considered. All votes cast contrary to our stated voting Policy on specific issues must be documented. If a proxy vote involves a potential conflict of interest, the voting decision will be determined in accordance with the processes outlined in the Handing Potential Conflicts of Interest section of the Policy below. On an annual basis, the Committee will receive and review a report of all such votes so as to confirm adherence with the Policy.

**Disclosure of Conflicts**

When considering a proxy proposal, members of the Committee or investment professionals involved in the decision-making process must disclose to the Committee any potential conflict (including personal relationships) of which they are aware and any substantive contact that they have had with any interested outside party (including the issuer or shareholder group sponsoring a proposal) regarding the proposal.

Any previously unknown conflict will be recorded on the Potential Conflicts List (discussed below). If a member of the Committee has a material conflict of interest, he or she generally must recuse himself or herself from the decision-making process.

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**Potential Conflicts**

Potential conflicts related to proxy voting may include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Votes involving publicly traded clients of AB;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Votes involving publicly traded companies that distribute AB mutual funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Votes where investment teams have different views;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Votes involving any clients that try to advocate for proxy voting support;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Voting contrary to the Policy; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any other company subject to a material conflict of which a Committee member becomes aware.

We determine our votes for all meetings of companies that may present a conflict by applying the processes described in the Handling Potential Conflicts of Interest section below. We document all instances when the Conflicts Officer determines our vote.

**Handling Potential Conflicts of Interest**

When we encounter a potential conflict of interest, we review our proposed vote using the following analysis to ensure our voting decision is in the best interest of our clients:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If our proposed vote is consistent with the Policy, no further review is necessary.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If our proposed vote is contrary to the Policy, the vote will be presented to AB's Conflicts Officer. The Conflicts Officer's review and determination will be documented and presented to the Proxy Voting and Governance Committee. The Conflicts Officer will determine whether the proposed vote is reasonable and in line with our fiduciary duties to clients. If the Conflicts Officer cannot determine that the proposed vote is reasonable, the Conflicts Officer may instruct AB to refer the votes back to the client(s) or take other actions as the Conflicts Officer deems appropriate in light of the facts and circumstances of the particular potential conflict. The Conflicts Officer may take or recommend that AB take the following steps:

oRecuse or "wall-off" certain personnel from the proxy voting process;

oConfirm whether AB's proposed vote is consistent with the voting recommendations of our proxy research services vendor; or

oTake other actions as the Conflicts Officer deems appropriate.

**Review of Third-Party Proxy Service Vendors**

AB engages one or more Proxy Service Vendors to provide voting research and voting execution services. From time to time, AB will evaluate each Proxy Service Vendor's services to assess that they are consistent with this Policy and the best interest of our clients. This evaluation may include: (i) a review of pre-populated votes on the Proxy Service Vendor's electronic voting platform before such votes are cast, and (ii) a review of policies that address the consideration of additional information that becomes available regarding a proposal before the vote is cast. AB will also periodically review whether Proxy Service Vendors have the capacity and competency to adequately analyze proxy issues and provide the necessary services to AB. AB will consider, among other things, the adequacy and quality of the Proxy Service Vendor's staffing, personnel and/or technology, as well as whether the Proxy Service Vendor has adequate disclosures regarding its methodologies in formulating voting recommendations. If applicable, we will also review whether any potential factual errors, incompleteness or methodological weaknesses materially affected the Proxy Service Vendor's services and the effectiveness of the Proxy Service Vendor's procedures for obtaining current and accurate information relevant to matters included in its research.

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The Committee also takes reasonable steps to review the Proxy Service Vendor's policies and procedures addressing conflicts of interest and verify that AB's primary Proxy Service Vendor(s) is, in fact, independent based on all of the relevant facts and circumstances. This includes reviewing each Proxy Service Vendor's conflict management procedures on an annual basis. When reviewing these conflict management procedures, we will consider, among other things, (i) whether the Proxy Service Vendor has adequate policies and procedures to identify, disclose, and address actual and potential conflicts of interest; and (ii) whether the Proxy Service Vendor provides adequate disclosure of actual and potential conflicts of interest with respect to the services provided to AB by the Proxy Service Vendor and (iii) whether the Proxy Service Vendor's policies and procedures utilize technology in delivering conflicts disclosure; and (iv) can offer research in an impartial manner and in the best interests of our clients.

**Confidential Voting**

It is AB's policy to support confidentiality before the actual vote has been cast. Employees are prohibited from revealing how we intend to vote except to (i) members of the Committee; (ii) Portfolio Managers who hold the security in their managed accounts; (iii) the Research Analyst(s) who cover(s) the security; (iv) clients, upon request, for the securities held in their portfolios; (v) clients who do not hold the security or for whom AB does not have proxy voting authority, but who provide AB with a signed a Non-Disclosure Agreement; or (vi) declare our stance on a shareholder proposal(s) that is (are) deemed material for the issuer's business for generating long-term value in our clients' best interests. Once the votes have been cast for our mutual fund clients, they are made public in accordance with mutual fund proxy vote disclosures required by the SEC, and we generally post all votes to our public website one business day after the meeting date.

We may participate in proxy surveys conducted by shareholder groups or consultants so long as such participation does not compromise our confidential voting policy. Specifically, prior to our required SEC disclosures each year, we may respond to surveys asking about our proxy voting policies, but not any specific votes. After our mutual fund proxy vote disclosures required by the SEC each year have been made public and/or votes have been posted to our public website, we may respond to surveys that cover specific votes in addition to our voting policies.

On occasion, clients for whom we do not have proxy voting authority may ask us how AB's Policy would be implemented. A member of the Committee or one or more Investment Stewardship Team may provide the results of a potential implementation of the AB policy to the client's account subject to an understanding with the client that the implementation shall remain confidential.

Any substantive contact regarding proxy issues from the issuer, the issuer's agent or a shareholder group sponsoring a proposal must be reported to the Committee if such contact was material to a decision to vote contrary to this Policy. Routine administrative inquiries from proxy solicitors need not be reported.

**A Note Regarding AB's Structure**

AB and AllianceBernstein Holding L.P. ("AB Holding") are Delaware limited partnerships. As limited partnerships, neither company is required to produce an annual proxy statement or hold an annual shareholder meeting. In addition, the general partner of AB and AB Holding, AllianceBernstein Corporation is an indirect wholly owned subsidiary of Equitable Holdings, Inc.

As a result, most of the positions we express in this Proxy Voting Policy are inapplicable to our business. For example, although units in AB Holding are publicly traded on the New York Stock Exchange ("NYSE"), the NYSE Listed Company Manual exempts limited partnerships and controlled companies from compliance with various listing requirements, including the requirement that our board have a majority of independent directors.

**Voting Transparency**

We publish our voting records on our website one business day after the shareholder meeting date for each issuer company. Many clients have requested that we provide them with periodic reports on how we voted their proxies. Clients may obtain information about how we voted proxies on their behalf by contacting their Advisor.

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**Record Keeping**

All of the records referenced below will be kept in an easily accessible place for at least the length of time required by local regulation and custom, and, if such local regulation requires that records are kept for less than six (6) years from the end of the fiscal year during which the last entry was made on such record, we will follow the US rule of six (6) or more years. If the local regulation requires that records are kept for more than six or more years, we will comply with the local regulation. We maintain the vast majority of these records electronically.

**Proxy Voting and Governance Policy**

The Policy shall be maintained in the Legal and Compliance Department and posted on our company intranet and on the AB website.

**Proxy Statements Received Regarding Clients' Securities**

For US Securities, AB relies on the SEC to maintain copies of each proxy statement we receive regarding client securities. For Non-US Securities, we rely on ISS, our proxy voting agent, to retain such proxy statements.

**Records of Votes Cast on Behalf of Clients**

Records of votes cast by AB are retained electronically by our proxy research service vendor.

**Pre-Disclosure of Vote Intentions on Select Proposals**

As part of our engagement and stewardship efforts, AB may publish our vote intentions on certain proposals in advance of select shareholder meetings, with an emphasis on issuers where our discretionary managed accounts have significant economic exposure. The selected proposals are chosen because they impact a range of key topics where AB may have expressed our viewpoints publicly, through prior engagement or proxy voting. We do not pre-disclose our vote intentions on mergers and acquisition activity. The published vote intentions are available on our website.

**Documents Prepared by AB that Are Material to Voting Decisions**

The Investment Stewardship Team is responsible for maintaining documents prepared by the Committee or any AB employee that were material to a voting decision. Therefore, where an investment professional's opinion is essential to the voting decision, the recommendation from investment professionals must be made in writing to a member of Investment Stewardship Team.

**Proxy Voting Procedures**

**Voting Administration**

To efficiency execute proxy voting for clients' holdings, AB uses ISS to submit votes electronically.

Issuers initially send proxy information to the custodians of our client accounts. We instruct these custodian banks to direct proxy related materials to ISS's offices. ISS provides us with research related to each resolution and pre-populates certain ballots based on the guidelines contained in this Policy. AB's Investment Stewardship Team assesses the proposals via ISS's web platform, Proxy Exchange, and submits all votes electronically. ISS then returns the proxy ballot forms to the designated returnee for tabulation. In addition, AB's proxy votes are double-checked in a two-tiered approach. All votes are reviewed real-time by an offshore proxy review team to verify that the executed votes are aligned with our Policy. Votes for significant holdings, as defined by our stake, are additionally reviewed on a monthly basis by the Investment Stewardship Team to ensure their compliance with our Policy.

If necessary, any paper ballots we receive will be voted electronically or via mail or fax.

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**Share Blocking and Abstaining from Voting Client Securities**

Proxy voting in certain countries requires "share blocking." Shareholders wishing to vote their proxies must deposit their shares shortly before the date of the meeting (usually one week) with a designated depositary. During this blocking period, shares that will be voted at the meeting cannot be sold until the meeting has taken place and the shares are returned to the clients' custodian banks. We may determine that the value of exercising the vote is outweighed by the detriment of not being able to sell the shares during this period. In cases where we want to retain the ability to trade shares, we may determine to not vote those shares.

We seek to vote all proxies for securities held in client accounts for which we have proxy voting authority. However, in some markets administrative issues beyond our control may sometimes prevent us from voting such proxies. For example, we may receive meeting notices after the cut-off date for voting or without enough time to fully consider the proxy. Similarly, proxy materials for some issuers may not contain disclosure sufficient to arrive at a voting decision, in which cases we may abstain from voting.

Some markets outside the US require periodic renewals of powers of attorney that local agents must have from our clients prior to implementing our voting instructions.

AB will abstain from voting (which generally requires submission of a proxy voting card) or affirmatively decide not to vote if AB determines that abstaining or not voting would be in the applicable client's best interest. In making such a determination, AB will consider various factors, including, but not limited to: (i) the costs associated with exercising the proxy (e.g., translation or travel costs); (ii) any legal restrictions on trading resulting from the exercise of a proxy (e.g., share-blocking jurisdictions); (iii) whether AB's clients have sold the underlying securities since the record date for the proxy; and (iv) whether casting a vote would not reasonably be expected to have a material effect on the value of the client's investment.

**Loaned Securities**

Many of our clients have entered into securities lending arrangements with agent lenders to generate additional revenue. We will not be able to vote securities that are on loan under these types of arrangements. However, for AB managed funds, the agent lenders have standing instructions to recall all securities on loan systematically in a timely manner on a best effort basis in order for AB to vote the proxies on those previously loaned shares.

If you have questions or desire additional information about this Policy, please contact <u>ProxyTeam@alliancebernstein.com</u>

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**BARROW HANLEY GLOBAL INVESTORS**

Proxy Voting Policy and Guidelines

Revised May 1, 2025

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Barrow Hanley has accepted authority to vote proxies for our clients who have delegated this responsibility to us. It is the Firm's policy to vote our clients' proxies in the best economic interests of our clients, the beneficial owners of the shares. The Firm has adopted this Proxy Voting Policy for handling research, voting, reporting, and disclosing proxy votes, and this set of Proxy Voting Guidelines ("Guidelines") that provide a framework for assessing proxy proposals.

Barrow Hanley votes all clients' proxies the same based on the Firm's policy and Guidelines. If or when additional costs for voting proxies are identified, the Firm will determine whether such costs exceed the expected economic benefit of voting the proxy and may abstain from voting proxies for ERISA Plan clients. However, if/when such voting costs are borne by Barrow Hanley and not by the client, all proxies will be voted for all clients.

Disclosure information about the Firm's Proxy Voting Policy and Guidelines is provided in the Firm's Form ADV Part 2.

To assist in the proxy voting process, at its own expense, Barrow Hanley retains Glass Lewis & Co. ("Glass Lewis") as proxy service provider. Glass Lewis provides:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Research on corporate governance, financial statements, business, legal and accounting risks.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Proxy voting recommendations, including environmental, social, and governance voting Guidelines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Portfolio accounting and reconciliation of shareholdings for voting purposes

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Proxy voting execution, record keeping, and reporting services.

**Proxy Oversight Committee, Proxy Coordinators, and Proxy Voting Committee**

Barrow Hanley's Proxy Oversight Committee is responsible for implementing and monitoring this Proxy Voting Policy, procedures, disclosures, and recordkeeping.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Proxy Oversight Committee conducts periodic reviews of proxy votes to ensure that the policy is observed, implemented properly, and amended or updated, as appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Proxy Oversight Committee is comprised of the Responsible Investing Committee Lead (chair), the CCO, the Head of Investment Operations, an At-Large Portfolio Manager, and another rotating member of the Investment team.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Research Analysts are responsible to review and evaluate proposals and make recommendations to the Proxy Voting Committee to ensure that votes are consistent with the Firm's analysis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Equity Portfolio Managers are members of the Proxy Voting Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Equity Portfolio Managers vote proposals based on our Guidelines, internal research recommendations, and the research from Glass Lewis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Proxy Coordinators oversee the proxy voting process, assisting Research Analysts and the Proxy Voting Committee as needed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Proxies for the Diversified Small Cap Value accounts are voted in accordance with Glass Lewis' recommendations for the following reasons:

oInvestment selection is based on a quantitative model

oThe holding period is too short to justify the time for analysis necessary to vote.

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**Conflicts of Interest**

Potential conflicts may arise when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Clients elect to participate in securities lending arrangements; in such cases, the votes follow the shares. Barrow Hanley is not a party to the client's lending arrangement and typically does not have information about shares on loan. Under these circumstances the proxies for those shares may not be voted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If/when a proxy voting issue is determined to be financially material, the Firm makes a best-efforts attempt to alert clients and their custodial bank to recall shares from loan to be voted. In this context, Barrow Hanley defines a financially material issue to be issues deemed by our investment team to have significant economic impact. The ultimate decision on whether to recall shares is the responsibility of the client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Barrow Hanley invests in equity securities of corporations who are also clients of the Firm. In such cases, the Firm seeks to mitigate potential conflicts by:

oMaking voting decisions for the benefit of the shareholder(s), our clients,

oUniformly voting every proxy based on Barrow Hanley's internal research and consideration of Glass Lewis' recommendations, and

oDocumenting the votes of companies who are also clients of the Firm.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If a material conflict of interest exists, members from the Proxy Voting and Proxy Oversight Committees will determine if the affected clients should have an opportunity to vote their proxies themselves, or whether Barrow Hanley will address the specific voting issue through other objective means, such as voting the proxies in a manner consistent with a predetermined Proxy Voting Policy or accepting the voting recommendation of Glass Lewis.

**Other Policies and Procedures**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A proxy card or voting instruction form contains a list of voting options, including For, Against, Abstain, and/or Withhold. A vote to Abstain or Withhold is effectively a vote against the proposal. Barrow Hanley assesses each vote, the intended impact of our vote, and the rule(s) that apply to the vote and may select any of these options when casting the vote. Barrow Hanley sends a daily electronic transfer of equity positions to Glass Lewis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Glass Lewis identifies accounts eligible to vote for each security and posts the proposals and research on its secure, proprietary online system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Barrow Hanley sends a proxy report to clients at least annually and/or as requested by client, listing the number of shares voted and disclosing how proxies were voted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Barrow Hanley retains voting records in accordance with the Firm's Books and Records Policy. Glass Lewis retains the Firm's voting records for seven years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Proxy Coordinators are responsible for retaining the following proxy records:

oThese policies, procedures, and amendments.

oProxy statements regarding our clients' securities.

oA record of each proxy voted.

oProxy voting reports that are sent to clients annually.

oInternal documents related to voting decisions; and

oRecords of clients' requests for proxy voting information and/or correspondence about votes.

**Voting Debt and/or Bank Loan Securities**

Barrow Hanley's proxy voting responsibilities may include voting on proposals, amendments, consents, or resolutions solicited by or in respect to securities related to bank loan investments.

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**Exceptions**

Limited exceptions to this policy may be permitted based on a client's circumstances, such as, foreign regulations that create a conflict with U.S. practices, expenses to facilitate voting when the costs outweigh the benefit of voting the proxies, or other circumstances.

**Proxy Voting Guidelines**

Barrow Hanley's set of Guidelines is a framework for assessing proposals. Each proposal is evaluated based on its facts and circumstances. The Firm reviews and considers ESG issues along with other financially material factors to assess the financially material impact on the long-term value of the shares. Our Guidelines address the following issues:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Board of Directors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Independent Auditors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compensation Issues

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Corporate Structure and Shareholder Rights

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shareholder Proposals and ESG Issues

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Voting of Non-U.S./Foreign Shares

Issues that do not conform to these Guidelines are evaluated by the Proxy Voting Committee and voted in the best interest of our clients.

**Board of Directors**

*Election of Directors*

Barrow Hanley believes that good corporate governance begins with a board of majority-independent directors and committees, including independent directors who serve on Audit, Compensation, and Nominating committees.

Barrow Hanley will generally approve:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A slate of nominees comprised of a two-thirds majority of independent directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Nominees for Audit, Compensation and/or Nominating committees who are independent of management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Nominees who we believe have the required skills and diverse backgrounds to make informed judgments about the subject matter for which the committee is responsible.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• We attempt to target board diversity of at least 30%.

Barrow Hanley will generally not approve:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A slate of nominees that results in a majority non-independent directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Nominees for Audit, Compensation and/or Nominating committees who are not independent of management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Incumbent board members who failed to attend at least 75% of board and applicable committee meetings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Nominees who have served on boards or as executives of companies with records of poor performance, inadequate risk oversight, excessive compensation, audit, or accounting-related problems and/or other indicators of mismanagement or actions against the interests of shareholders.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Nominees whose actions on other committees demonstrate serious failures of governance, which may include acting to significantly reduce shareholder rights, or failure to respond to previous vote requests for directors and shareholder proposals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An independent director who has in the past three years, had a material financial, familial, or other relationship with the company or its executives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Members of a Nominating committee where the board has an average tenure of over ten years and has not appointed a new member to the board in at least five years

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Members of a Nominating committee where the board lacks diversity.

*Combined Chairman / CEO Role*

When the roles of a board's chair and CEO are combined a strong lead independent director is necessary. If a lead director is not appointed, Barrow Hanley supports proposals to separate the roles.

*Contested Elections of Directors*

Barrow Hanley evaluates a nominee's qualifications, the incumbent board's performance, and the rationale behind dissident campaigns, and votes based on maximizing shareholder value.

*Classified Boards*

Barrow Hanley supports proposals to declassify existing boards, whether proposed by management or shareholders. In most cases we vote against proposals for classified board structures where only part of the board is elected each year.

If a board does not have a committee responsible for governance oversight and the board has not implemented a proposal that received the requisite support, we vote against the entire board. If a proposal requests the board adopt a declassified structure, we vote against all directors and nominees up for election.

*Board Diversity*

Barrow Hanley supports boards with diverse backgrounds and nominees with relevant experience. Nominating and governance committees should consider diversity within the context of the company and industry. Shareholders are best served when boards make an effort to ensure a constituency that is not only reasonably diverse based on age, race, gender, and ethnicity, but also based on geographic knowledge, industry experience, board tenure and culture. Board diversity is one of many factors considered on a case-by-case basis when reviewing board elections.

*Board Tenure*

Barrow Hanley believes that independent directors are an important part of good governance. Long term service diminishes a member's independence. Directors serving on a board for 10 years or more are not considered to be independent.

We recognize that in some cases, a director's tenure and experience on the board is beneficial to shareholders. Nominees' tenure on the board is evaluated to determine independence.

*Overboarding*

Barrow Hanley reviews a nominee's board commitments on a case-by-case basis and generally votes against nominees who are executives of public company while serving on three or more public boards or a non-executive who sits on four or more public boards.

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*Proxy Access*

Shareholders' participation in electing directors enhances a board's accountability and responsiveness. Long-term investors can benefit from shareholder rights to nominate directors. Such rights should require a minimum percentage ownership (at least 5%) of outstanding shares held for a minimum period (at least three years) to nominate a maximum percentage of (up to 20%) for the board.

**Approval of Independent Auditors**

Independent auditors are a critical element of good governance. A company's relationship with its independent auditor should be limited to its audit. Auditor's fees should be limited to the audit work. Other, closely related activities that do not appear to impair the auditor's independence may be approved. Barrow Hanley evaluates the circumstances of auditors who have a substantial non-auditing relationship with the company on a case-by-case basis.

**Compensation Issues**

Compensation Plans should align the interests of long-term shareholders with the interests of management, employees, and directors.

*Stock-Based Compensation Plans*

Stock-based compensation plans should be administered by an independent committee of the board and approved by shareholders. Barrow Hanley opposes compensation plans that substantially dilute a shareholder's ownership interest, provides participants with excessive awards, and/or have other objectionable features. Compensation proposals are evaluated on a case-by-case basis using the following factors:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The company's industry group, market capitalization, and competitors' compensation plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Requirements for senior executives to hold a minimum amount/percentage of company stock.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Requirements for minimum holding periods for stock acquired through equity awards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Performance-vesting awards, indexed options, and/or other grants linked to the company's performance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Requirements that limit the concentration of equity grants to senior executives and provide for a broad-based plan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Requirements for stock-based compensation plans as a substitute for cash compensation to deliver market-competitive total compensation.

*Bonus Plans*

Bonus based compensation plans should include the following features:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Periodic shareholder approval to properly qualify for deductions under Internal Revenue Code Section 162(m).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Performance measures relating to key value drivers of the company's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Maximum award amounts expressed in dollar amounts.

Bonus plans should not include excessive awards in both absolute and relative terms.

*Executive Compensation Plans (Say on Pay)*

Say on Pay type of executive compensation programs can effectively link pay and performance and provide competitive compensation opportunities. Say on Pay type plans should state the amount of compensation at risk and the amount of equity-based compensation linked to the company's performance and include adequate disclosure about the overall compensation structure. Say on Pay type plans should not include significant compensation guarantees and/or compensation that is not sufficiently linked to performance.

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*Recoupment Provisions (Clawbacks)*

Executive compensation programs should be clearly tied to performance and include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Detailed bonus recoupment policies to prevent executives from retaining performance-based awards that were not truly earned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Clawback triggers in the event of a restatement of financial results or similar revision of performance indicators upon which bonuses were based.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Policies allowing board reviews of performance-related bonuses and awards paid to senior executives during the period covered by a restatement that allows the company to recoup such bonuses if performance goals were not actually achieved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Clawback policies that limit discretion and ensure the integrity of such policies.

*Executive Severance Agreement (Golden Parachutes)*

Executive compensation should be designed as an incentive for continued employment and include reasonable severance benefits, and the executive's termination should be limited to three times salary and bonus, referred to as *double-trigger plans*.

Guaranteed severance benefits that exceed three times salary and bonus should be disclosed and should require shareholder approval.

Barrow Hanley does not support guaranteed severance benefits without a change in control or arrangements that does not require the executive's termination, referred to as *single-trigger plans*.

*Employee Stock Purchase Plans*

Employee stock purchase plans are effective ways to increase employees' ownership in the company's stock. Such plans should not allow for purchases below 85% of current market value and should limit shares reserved under the plan to 5% or less of the outstanding shares of the company.

**Corporate Structure and Shareholder Rights**

Barrow Hanley supports market-based corporate control functions without undue interference from artificial barriers. Shareholders' rights are a fundamental privilege of equity ownership and should be proportional to economic ownership. Appropriate limits include a shareholder's ability to act by corporate charter, bylaw provisions, or adoption of certain takeover provisions.

*Shareholder Right Plans (Poison Pills)*

Poison pill plans can erode shareholder value by limiting a potential acquirer's ability to purchase a controlling interest in the company without the approval of its board of directors, and/or can serve to entrench incumbent management and directors.

Shareholder rights plans should be designed to enables the board to take appropriate to defensive actions, and should require the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shareholder approval within a year of its adoption.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Timing limited to 3-5 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Requirement for shareholder approval for renewal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reviews by a committee of independent directors at least every three years, referred to as *TIDE provisions*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Permitted bid or qualified offer features requiring shareholder votes under specific conditions referred to as *chewable pills*.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reasonable ownership triggers of 15-20%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Highly independent, non-classified boards.

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Shareholder rights plans should avoid the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Long-term defensive features of 5 or more years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Automatic renewals without shareholder approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ownership triggers of less than 15%.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Classified boards.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Boards with limited independence.

*Political Contributions and Lobbying*

Barrow Hanley evaluates an issuer's policy and procedures governing political spending and lobbying. Proposals demonstrating insufficient or absent policies and disclosure are opposed.

*An Increase in Authorized Shares*

Proposals for increases in authorized share amounts should not expose shareholders to excessive dilution and should be limited to increases of up to 20% of the current share authorization.

*Cumulative Voting*

Cumulative voting should be proportional to the shareholders' economic investment in the company.

*Supermajority Vote Requirements*

Shareholders' rights to approve or reject proposals should be based on a simple majority.

*Confidential Voting*

Shareholder voting should be conducted in a confidential manner.

*Dual Classes of Stock*

Barrow Hanley opposes dual-class capitalization structures that provide disparate voting rights to shareholders with similar economic interests. Proposals to create separate share classes with different voting rights are opposed. Proposals to dissolve separate share classes are approved.

**Shareholder Proposals and ESG Issues**

Proposals relating to ESG issues are usually initiated by shareholders seeking disclosure about certain business practices or amendments to certain policies. Barrow Hanley's policy and Guidelines are designed to provide a framework for assessing the financial materiality of corporate governance, environmental, and social issues. Barrow Hanley supports proposals that improve transparency on issues that can be clearly tied to sustainable resource development, environmental compliance, and workplace safety.

Barrow Hanley subscribes to third party ESG research and scoring databases, including MSCI, Sustainalytics, and IFRS as a tool for rating the financial materiality of ESG factors to support our internal research. Some investments may have a low corporate ranking based on a third party's profile. Investment in low ranked companies is based on our belief that shareholder engagement is the best way to engage with management and use our influence toward sustainable improvements. Our fundamental analysis identifies areas and issues for engagement with management to improve policies and disclosure.

Barrow Hanley evaluates climate risk and disclosure standards for the companies and industries most exposed to climate change and engages with management and boards to understand the company's risks and opportunities and where necessary, seeks additional disclosure.

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Barrow Hanley considers issues related to human capital to be a company's most significant risks and opportunities. Boards should disclose and communicate plans to instill inclusive, attractive, and high-retention environments in the company. Barrow Hanley supports inclusive working environments and diversity among employees and supports shareholder proposals that contain comprehensive equal opportunity and anti-discrimination provisions, and reporting on gender-based discrepancies in compensation.

**Voting of Non-U.S./Foreign Shares**

Although corporate governance standards, disclosure requirements, and voting mechanisms vary greatly among the markets outside the U.S., proposals are evaluated under these Guidelines and consideration of the local market's standards and best practices.

**Exceptions** 

Glass Lewis is configured to vote consistent with Barrow Hanley's Guidelines, however, the Proxy Voting Committee permits reasonable exceptions based on the facts, circumstances, and best economic interests of our clients. Exceptions are documented and retained in the Firm's proxy voting records.

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**BlackRock Active Investment Stewardship**

Global Engagement and Voting Guidelines

Effective as of January 2025

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| | |
|:---|:---|
| **Contents** | |
| Overview | 3 |
| Introduction to BlackRock | 4 |
| About BlackRock Active Investment Stewardship | 4 |
| Our approach to stewardship within active equities | 5 |
| Our approach to stewardship within fixed income | 5 |
| Boards of Directors | 6 |
| Executive compensation | 9 |
| Non-executive director compensation | 10 |
| Capital structure | 10 |
| Transactions and special situations | 11 |
| Corporate reporting, risk management and audit | 12 |
| Shareholder rights and protections | 13 |
| Shareholder proposals | 14 |
| Corporate political activities | 14 |
| Sustainability, or environmental and social, considerations | 15 |
| Key stakeholders | 15 |
| Climate and decarbonization investment objectives | 16 |
| Appendix 1: How we fulfil and oversee our active investment stewardship responsibilities | 17 |

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**Overview**

This document provides high level guidance on how BlackRock Active Investment Stewardship (BAIS) views corporate governance matters that are commonly put to a shareholder vote, or on which investors engage with issuers. BAIS works in partnership with BlackRock's investment teams, excluding index equity, providing expertise on investment stewardship, engaging with companies on behalf of those teams when appropriate, and assisting in recommending, operationalizing and reporting on voting decisions. The guidance informs BAIS' voting recommendations to BlackRock's active portfolio managers. It applies to active equity holdings in BlackRock's fundamental equity, systematic equity and multi-asset solutions strategies. It also may apply to holdings in BlackRock's index and active fixed income strategies, to the extent those strategies hold voting securities or conduct issuer engagements. The guidelines are not prescriptive as active portfolio managers have discretion as to how they integrate these guidelines within their investment processes in light of their clients' or funds' investment objectives. There are separate, independently developed principles and voting policies that are applied to BlackRock's index equity investments by a distinct and independent function, BlackRock Investment Stewardship.

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**Introduction to BlackRock**

BlackRock's purpose is to help more and more people experience financial well-being. We manage assets on behalf of institutional and individual clients, across a full spectrum of investment strategies, asset classes, and regions. Our client base includes pension plans, endowments, foundations, charities, official institutions, insurers, and other financial institutions, as well as individuals around the world.

**About BlackRock Active Investment Stewardship**

BlackRock Active Investment Stewardship (BAIS) is a specialist team within the Portfolio Management Group and manages BlackRock's stewardship engagement and voting on behalf of clients invested in active strategies globally. BAIS is also responsible for engagement with issuers in index fixed income strategies, where appropriate. Our activities are informed by these Global Engagement and Voting Guidelines ("the Guidelines") and insights from active investment analysts and portfolio managers, with whom we work closely in engaging companies and voting at shareholder meetings.

Engagement with public companies is the foundation of our approach to stewardship within fundamental active investing. Through direct dialogue with company leadership, we seek to understand their businesses and how they manage risks and opportunities to deliver durable, risk adjusted financial returns. Generally, portfolio managers and stewardship specialists engage jointly on substantive matters. Our discussions focus on topics relevant to a company's success over time including governance and leadership, corporate strategy, capital structure and financial performance, operations and sustainability- related risks, as well as macro-economic, geopolitical and sector dynamics. We aim to be constructive investors and are generally supportive of management teams that have a track record of financial value creation. We aim to build and maintain strong relationships with company leadership based on open dialogue and mutual respect.

Different active equity strategies may implement these voting guidelines differently, as a result of the latitude the portfolio manager has to make independent voting decisions aligned with their portfolio objectives and investment strategy. For example, BAIS will generally vote the holdings in Systematic Active Equity portfolios in accordance with these guidelines. We provide voting recommendations to fundamental equity portfolio managers, who may determine to vote differently based on their portfolio investment objectives and strategy.

These guidelines discuss corporate governance topics on which we may engage with management teams and board directors<sup>1</sup> and matters that routinely come to a shareholder vote. We recognize that accepted corporate governance norms can differ across markets, and believe these guidelines represent globally applicable elements of governance that support a company's ability to manage material risks and opportunities and deliver financial returns to investors. Generally, we believe companies should observe accepted corporate governance norms within their local markets or, particularly in markets without well- established norms, aspire to widely recognized international best practices. As one of many minority shareholders, BlackRock cannot – and does not try to – direct a company's strategy or its implementation. We look to companies to provide disclosures that explain how their approach to corporate governance best aligns with the financial interests of their investors.

<sup>1</sup> References to the board, board directors or non-executive directors should be understood to include supervisory boards and their members, where relevant.

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**Our approach to stewardship within active equities**

As shareholders of public companies, BlackRock's clients have certain fundamental rights, including the right to vote on proposals put forth by a company's management or its shareholders. The voting rights attached to these clients' holdings are an important mechanism for investors to express support for, or concern about, a company's performance. As a fiduciary, BlackRock is legally required to make proxy voting determinations, on behalf of clients who have delegated voting authority to us, in a manner that is consistent with their investment objectives.

In general, we tend to support the recommendations of the board of directors and management. As indicated below, we may vote against management recommendations when we have concerns about how companies are serving the financial interests of our clients as their shareholders. We take a globally consistent approach to voting but consider the different corporate governance regulations and norms in various markets. Votes are determined on a case-by-case basis, in the context of a company's situation and the investment mandate we have from clients. Please see page 16 for more information about how we fulfil and oversee BlackRock's non-index equity investment stewardship responsibilities.

**Our approach to stewardship within fixed income**

Although fixed income investors do not have the right to vote at shareholder meetings, issuer engagement is a component of fixed income investment strategies at BlackRock, particularly those with sustainability objectives in addition to financial objectives. Most corporate governance-related fixed income engagements are undertaken in conjunction with the active investment stewardship team, and often active equity investors. In addition to the topics listed below, engagement with fixed income investment teams can help inform an issuer's approach to structuring specialist issuances, such as green bonds, and the standard terms and information in bond documentation.

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**Boards of Directors**

**Roles and responsibilities**

There is widespread consensus that the foundation of good corporate governance is an effective board of directors that is able to advise and supervise management in an independent and objective manner.<sup>2</sup>

We look to the board of directors (hereafter 'the board') to have an oversight role in the establishment and realization of a company's strategy, purpose and culture. These constructs are interdependent and, when aligned, can better position a company to be resilient in the face of a changing business environment, help reduce the risks of corporate or employee misconduct, and attract and retain the caliber of workers necessary to deliver financial performance over time.

In promoting the success of the company, the board ensures the necessary resources, policies and procedures are in place to help management meet its strategic objectives within an agreed risk tolerance.

One of the most important responsibilities of the board is to appoint, and remove as necessary, the chief executive officer (CEO). In addition, the board plays a meaningful role in monitoring the performance of the CEO and other key executives, determining executive compensation, ensuring a rigorous audit, overseeing strategy execution and risk management and engaging with shareholders, and other stakeholders, as necessary.

**Composition and effectiveness**

***Appointment process***

A formal and transparent process for identifying and appointing director candidates is critical to ensuring the board is composed of directors with the appropriate mix of skills and experience. The board or a sub- committee should determine the general criteria given the company's circumstances (e.g., sector, maturity, geographic footprint) and any additional criteria for a specific role being filled (e.g., financial expertise, industry track record). To inform the process, we encourage companies to review the skills and experience of incumbent directors to identify any gaps and whether a director candidate's characteristics would be additive. We welcome disclosures that explain how the board considered different skills, backgrounds and experience to ensure the directors collectively can be effective in fulfilling their responsibilities. We assess a company's board composition against that of its peer group and local market requirements.

Shareholders periodically vote to elect, remove and nominate directors to serve on the board. We may vote against the election of the most senior independent director, or the chair of the relevant committee, where a company has not demonstrated it has an appointment process that results in a high functioning board with the appropriate complement of skills, backgrounds and experience amongst the directors to support strong financial performance over time. We may vote against newly nominated directors who do not seem to have the appropriate skills or experience to contribute to the board's effectiveness.

***Independence***

Director independence from management, significant shareholders or other stakeholders (e.g., government or employees) is of paramount importance to the protection of the interests of minority shareholders such as BlackRock's clients. At least half of the directors should be independent and free from conflicts of interest or undue influence.<sup>3</sup> This ensures sufficient independent directors to have appropriately independent board committees. Companies domiciled in markets with a higher threshold for board independence should meet those requirements.

We may vote against the election of non-independent directors if the board does not have a sufficient balance of independence. We may also vote against the election of the chair of the committee responsible for board composition if this is a perennial issue.

<sup>2</sup> See the Corporate Governance Codes of Germany, Japan, and the UK, as well as the corporate governance principles of the US Business Roundtable as examples.

<sup>3</sup> Common impediments to independence may include but are not limited to: current or recent employment at the company or a subsidiary; being, or representing, a shareholder with a substantial shareholding in the company; interlocking directorships; lengthy tenure, and having any other interest, business, or other relationship which could, or could reasonably be perceived to, materially interfere with a director's ability to act in the best interests of the company and shareholders.

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***Independent board leadership***

Practices across markets differ, as do board structures, but we observe two main approaches to independent board leadership. One is a non-executive, independent chair of the board who is responsible for leading the board in the effective exercise of its duties. The other is a lead or senior independent director, who is responsible for coordinating with the other non-executive directors and working closely with the executive chair on the board agenda and other board procedures. In this case, the executive chair and the lead independent director work together to ensure the board is effectively fulfilling its responsibilities. In our view, the independent leader of the board, and/or the chair of a relevant committee, should be available to investors to discuss board governance matters such as CEO succession, executive pay, and board performance. We look to boards to explain their independent board leadership model and how it serves the interests of shareholders.

We may vote against the election of the chair of the committee responsible for board composition if there is not an identified independent leader of the board with clear responsibilities for board performance. We may vote against the most senior independent director if the board has a policy of not engaging with shareholders.

***Tenure and succession***

Boards should establish the length of time a director would normally be expected to serve, in line with market norms where those exist. In such markets, we find it helpful when companies disclose their approach to director tenure particularly around the contributions of directors who have served for longer periods than provided for in local practices. In our experience, long-serving directors could become less independent given their relationship with management and involvement in past board decisions.

Succession planning for board roles helps achieve the appropriate cadence of turnover that balances renewal through the regular introduction of directors with fresh perspectives and expertise with continuity through the retention of directors with long-term knowledge of the board and company.

In markets where there is not specific director tenure guidance, we may vote against the election of the chair of the committee responsible for board composition if there is not a clearly disclosed approach to director tenure and board renewal. We may vote against the election of directors who have served for longer duration than typical in markets with specific guidance, where the case for their continued service is not evident.

***Capacity***

To be effective and engaged, directors must commit appropriate time and energy to the role. A board should assess the ability of its members to maintain an appropriate focus on board matters and the company taking into consideration competing responsibilities. We recognize that board leadership roles vary across markets in responsibilities and required time commitment but note that they are generally more intensive than a standard directorship. We will take local norms and practices into consideration when making our voting determinations across markets.

We may vote against the election of directors who do not seem to have sufficient capacity to effectively fulfil their duties to the board and company.

***Director elections***

In support of director accountability to shareholders, directors should stand for election on a regular basis, ideally annually. A classified board structure may be justified by a company when it needs consistency and stability during a time of transition, or on the basis of its business model, e.g., a non- operating company such as closed-end funds.

Shareholders should have the opportunity to evaluate nominated directors individually rather than in bundled slates. We look to companies to provide sufficient information on each director standing for election so that shareholders can assess their capabilities and suitability. We will not support the election of directors whose names and biographical details have not been disclosed sufficiently in advance of the shareholder meeting.

Each director's appointment should be dependent on receiving a simple majority of the votes cast at the shareholder meeting. Where a company's practices differ, we look to the board to provide a detailed explanation as to how its approach best serves investors' interests.

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We may vote for shareholder or management proposals seeking to establish annual election of directors and/or a simple majority vote standard for director elections. We may vote against all the directors standing for election as part of a single slate if we have concerns about the profile or performance of an individual director.

***Committees***

Many boards establish committees to focus on specific responsibilities of the board such as audit and risk, governance and human capital, and executive compensation, amongst other matters. We do not prescribe to companies what committees they should establish but we seek to understand the board's rationale for the committee structure it determines is appropriate. We note that, in some markets, regulation requires such committees. The responsibilities of each committee should be clear, and the board should ensure that all critical matters are assigned either to the full board or to one of the committees. The board should disclose to shareholders the structure, membership, proportion of independent directors, and responsibilities of each committee. The responsibilities we typically see assigned to the three most common committees include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Audit and risk – oversight responsibilities for the integrity of financial reporting, risk management and compliance with legal and regulatory requirements; may also play an oversight role in relation to the internal audit function and whistleblowing mechanisms.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Nominating, governance and human capital – ensures appropriate corporate governance principles and practices including the periodic review of board performance; responsible for succession planning for CEO and key board roles, as well as the director appointment process; may also have oversight responsibilities for human capital management strategies including corporate culture and purpose.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Executive compensation – determines the compensation policies and programs for the CEO and other executive officers, approves annual awards and payments under the policies; may also have oversight responsibilities for firm-wide compensation policies.

We may vote against the election of the chair of the committee or other directors serving as committee members to convey our concerns and provide feedback on how a committee has undertaken its responsibilities. We may vote against the election of the most senior non-executive director if there is not a clearly disclosed approach to board committees.

***Board and director evaluation***

We consider it best practice for companies to conduct an annual review of the performance of the board, the committees, the chair and individual directors. Periodically, this review could be undertaken by an independent third party able to bring objective perspectives to the board on governance and performance. We encourage companies to disclose their approach to and objectives of evaluations, including any changes made to the board's approach as a result.

***Access to independent advice***

To support the directors in effectively fulfilling their duties to the company and shareholders, they should have access to independent advice. When circumstances warrant, boards should be able to retain independent third parties to advise on critical matters. These might include new industry developments such as emergent and disruptive technology, operating events with material consequences for the company's reputation and/or performance, or significant transactions. Board committees may similarly retain third parties to advise them on specialist matters such as audit, compensation and succession planning.

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**Executive compensation**

Boards should establish compensation arrangements that enable the company to recruit, retain and reward the caliber of executive management necessary to lead and operate the company to deliver superior financial returns over time. We focus on alignment between variable pay and a company's financial performance.

Generally, executive compensation arrangements have four components: base salary, annual bonus that rewards performance against short-term metrics, share-based incentives that reward performance against long-term metrics, and pensions and benefits. In our observation, base salary, pensions and benefits are largely set relative to market norms and benchmarks. The annual bonus and share-based incentive, or variable pay plans, tend to be tailored to the company, its sector and long-term strategy, as well as the individuals the board is seeking to recruit and motivate.

Recognizing the unique circumstances of each company, we determine whether to support a company's approach to executive compensation on a case-by-case basis. We rely on companies providing sufficient quantitative and qualitative information in their disclosures to enable shareholders to understand the compensation arrangements and assess the alignment with investors' interests. Features we look for in compensation arrangements include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fixed pay components, including base salary, benefits and prerequisites that are appropriate in the context of the company's size, sector and market.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Variable pay subject to performance metrics that are closely linked to the company's short- and long-term strategic objectives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Long-term incentives that motivate sustained performance across a multi-year period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A balance between fixed and variable pay, short- and long-term incentives, and specific instruments (cash and equity awards) that promotes pay program durability and seldom necessitates one-off, discretionary payments.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Outcomes that are consistent with the returns to investors over the relevant time period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Board discretion, if allowed within the variable pay arrangements, to be used sparingly, responsibly and transparently.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A requirement, that participants in long-term share-based incentive plans build a meaningful shareholding in the company within a defined time period, as determined by the board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Change of control provisions that appropriately balance the interests of executives and shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Clawback or malus provisions that allow the company to recoup or hold back variable compensation from individuals whose awards were based on fraudulent activities, misstated financial reports, or executive misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Severance arrangements that protect the company's interests but do not cost more than is contractual.

We may vote against proposals to introduce new share-based incentives, approve existing policies or plans, or approve the compensation report where we do not see alignment between executive compensation arrangements and our clients' financial interests. When there is not an alternative, or where there have been multi-year issues with compensation misaligned with performance, we may vote against the election of the chair of the responsible committee, or the most senior independent director.

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**Non-executive director compensation**

Companies generally pay non-executive directors an annual retainer or fee in cash, shares or a combination of the two. Some companies also pay additional fees for service on board committees or in board leadership roles. We do not support non-executive directors participating in performance-based incentive plans as doing so may create a conflict of interest and undermine their independence from management, whom they oversee.

**Capital structure**

Boards are responsible for ensuring senior executive leadership has established a capital strategy that achieves appropriate capital allocation and management in support of long-term financial resilience.

Where company practices diverge from those set out below, we look for companies to disclose why they view these practices to be aligned with shareholders' interests. We may vote against management proposals seeking capital-related authorities or the election of the most senior independent director if we have concerns about a company's approach. We may also support a shareholder proposal seeking conversion of shares with differentiated voting rights to a one-share, one-vote standard.

**Share issuance**

We assess requests for share issuance for particular transactions on a case-by-case basis. We will generally support authorities to issue shares when subject to pre-emptive rights, and up to 20% absent pre-emptive rights. Companies should seek regular approval of these authorities to allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances of the company and the market environment.

**Share buybacks**

We assess share buyback proposals in the context of the company's disclosed capital management strategy and management's determination of the appropriate balance between investment that supports the long-term growth of the company and returning cash to investors. We also take into consideration the effect of a buyback program on the company's balance sheet and executive compensation arrangements and the price at which shares are repurchased relative to market price. Companies should seek regular approval of these authorities to allow shareholders to take into consideration how prior authorities were used, as well as the current circumstances of the company and the market environment.

We would normally expect companies to cancel repurchased shares. If a company plans to retain them as treasury shares, management should provide a detailed rationale in the context of the disclosed capital management strategy.

**Dividends**

We generally defer to management and the board on dividend policy but may engage to seek further clarification where a proposed dividend appears out of line with the company's financial position.

**Differentiated voting rights**

We prefer companies to adopt a one-share, one-vote structure for share classes with the same economic exposure. Certain companies, particularly those new to public markets, could make the case to adopt a differentiated voting rights structure, or dual class stock. In those situations, we encourage companies to evaluate and seek approval for their capital structure on a periodic basis.

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**Transactions and special situations**

We monitor developments in transactions and special situations closely and undertake our own detailed analyses of proposals.

**Mergers and acquisitions** 

We evaluate proposed mergers or acquisitions by assessing the financial outcome for our clients as minority shareholders. Management should provide an assessment of the proposed transaction's strategic and financial rationale, along with its execution and operational risks. We review each transaction independently based on these factors and the degree to which the transaction enhances shareholder value. The board should consider establishing an ad hoc transaction committee to undertake an independent assessment of a significant merger or acquisition, in advance of making its recommendation to shareholders. We will vote against transactions that, in our assessment, do not advance our clients' financial interests.

**Anti-takeover defenses** 

In principle, we do not support companies using anti-takeover defenses, also known as poison pills or shareholder rights plans, as they can entrench management and boards which have not delivered long- term shareholder value. By exception, a poison pill may be supported if its purpose is to delay a takeover that is considered sub-optimal and enable management to seek an improved offer. Similarly, management could make the case to use a poison pill to block a shareholder activism campaign that may be counter to the interests of other investors. Defense mechanisms introduced in these circumstances should be limited in term and threshold, and also be closely monitored by the independent members of the board. We look for a shareholder vote for any mechanisms expected to be in place for more than 12 months.

**Shareholder activism** 

When companies are the focus of an activism campaign, we may engage with the activist to understand their analysis and objectives, once they have gone public. We will also engage with company management and possibly board members, especially those the activist may be seeking to replace. In our assessment, we evaluate various factors, including the concerns raised by the activist and the case for change; the quality of both the activist's and management's plans; and the qualifications of each party's candidates. We evaluate each contested situation by assessing the potential financial outcome for our clients as minority shareholders. We may support board candidates nominated by a shareholder activist if the activist has demonstrated that their case for change enhances shareholder value, or if the incumbent board members do not demonstrate the relevant skills and expertise or have a poor track record of protecting shareholders' interests.

**Significant shareholders and related party transactions** 

Boards of companies with affiliated shareholders or directors should be able to demonstrate that the interests of all shareholders are given equitable consideration.

Transactions with related parties, such as significant shareholders or companies connected with the public company, should be disclosed in detail and conducted on terms similar to what would objectively have been agreed with a non-related party. Such transactions should be reviewed and approved by the independent members of the board, and if voted on, only disinterested shareholders should vote.

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**Corporate reporting, risk management and audit**

Investors depend on corporate reporting, both regulatory and voluntary, to understand a company's strategy, its implementation and financial performance, as well as to assess the quality of management and operations and potential for the company to create shareholder value over time. The board should oversee corporate reporting and the policies and procedures underpinning the internal audit function and external audit.

A company's financial reporting should provide decision-useful information for investors and other stakeholders on its financial performance and position. It should provide an accurate and balanced assessment of the risks and opportunities the company faces in realizing its long-term strategy.

Accordingly, the assumptions made by management and reviewed by the auditor in preparing the financial statements should be reasonable and justified. Financial statements should be prepared in accordance with globally developed reporting standards and any divergence from generally accepted accounting principles should be explained in detail and justified. Accounting restatements should be explained in detail and any remedial actions, and the implications of these, disclosed.

In this context, audit committees play a vital role in a company's financial reporting system by providing independent oversight of the accounts, material financial and, where appropriate to the jurisdiction, nonfinancial information, internal control frameworks and Enterprise Risk Management systems. In our view, effective audit committee oversight strengthens the quality and reliability of a company's financial statements and provides an important level of reassurance to shareholders. Audit committees should have a procedure in place for assessing the independence of the auditor and the quality of the external audit process annually.

Similarly, material sustainability-related factors that are integral to how a company manages risks or generates revenue should be disclosed. In our view, the standards developed by the International Sustainability Standards Board, can be helpful to companies in preparing such reports.<sup>4</sup>

Companies should establish robust risk management and internal control processes appropriate to the company's business, risk tolerance, and regulatory environment. A credible whistleblowing system for employees, and potentially other stakeholders, can be a useful mechanism for ensuring that senior management and the board are aware of potential misconduct or breaches in risk management and internal control processes.

A comprehensive audit conducted by an independent audit firm contributes to investor confidence in the quality of corporate reporting. It is helpful when the audit report gives some insight into the scope and focus of the audit, as well as any critical audit matters identified and how these were resolved. A comprehensive and effective audit is time and resource intensive, and the audit fee should be commensurate. Fees paid to the audit firm for non-audit consulting should not exceed the audit fee to a degree that may prompt concerns about the independence of the audit. The audit committee should explain its position on auditor tenure and how it confirmed that the auditor remained independent.

We may vote against the election of the responsible directors if corporate reporting is insufficient or there are material misstatements in financial reports. In markets where relevant, we may vote against a proposal to approve the financial statements or the discharge of the board when we are concerned about the quality of the reporting or the audit. We may vote against proposals to appoint the auditor, ratify the audit report, or approve the audit fee if we are concerned about the auditor's independence, the quality of the audit, or there are material misstatements in financial reports and the board has not established reasonable remediation plans.

<sup>4</sup> The objective of IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information is to require an entity to disclose information about its sustainability-related risks and opportunities that is useful to primary users of general-purpose financial reports in making decisions relating to providing resources to the entity. The objective of IFRS S2 Climate-related Disclosures is to require an entity to disclose information about its climate-related risks and opportunities that is useful to primary users of general-purpose financial reports in making decisions relating to providing resources to the entity.

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**Shareholder rights and protections**

**General shareholder meetings**

Companies normally have an annual general meeting of shareholders at which routine and non-routine items of business are discussed and voted on by shareholders in attendance or submitting proxy votes. Companies should disclose materials relevant to the shareholder meeting sufficiently in advance so that shareholders can take them into consideration in their voting decisions. Many companies offer shareholders the option of participating in the meeting virtually which, whilst welcome, should not limit the rights of shareholders to participate as they would during an in-person meeting.

We may vote against directors when materials related to the business of the shareholder meeting are not provided in a timely manner or do not provide sufficient information for us to take an informed voting decision. We may vote against directors if the format of the shareholder meeting does not accommodate reasonable shareholder participation.

**Bylaw amendments**

We review bylaw amendments proposed by management on a case-by-case basis and will generally support those that are aligned with the interests of minority shareholders. Any material changes to the bylaws should be explained in detail and put to a shareholder vote.

We may vote against bylaw amendments that reduce shareholder rights and protections. We may vote against directors if material changes are made to the bylaws without shareholder approval.

If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a group, with a meaningful shareholding the right to call a special meeting of shareholders. The shareholding required to exercise this right should balance its utility with the cost to the company of holding special meetings.

If not provided for in the relevant corporate law, company bylaws should allow shareholders, individually or as a group, with a meaningful shareholding the right to nominate directors to the company's board. The threshold for this right should be set so that shareholders can exercise it without being unduly disruptive to the board's own nomination process.

Whilst we would not use either of these rights ourselves, we see them as important accountability mechanisms. We may vote for a shareholder proposal seeking the addition of either of these provisions to a company's bylaws.

**Change of domicile**

We generally defer to management on proposals to change a company's domicile as long as the rationale for doing so is consistent with the company's long-term strategy and business model and the related costs are immaterial.

We may vote against directors or a proposal to change a company's domicile where it does not seem aligned with our clients' financial interests.

**Changes to a company's purpose or the nature of its business**

Plans to materially change the nature of a company's business or its purpose should be disclosed and explained in the context of long-term strategy and business dynamics. Such changes may significantly alter an investor's views on the suitability of a company for their investment strategy or portfolio.

Where relevant, we may vote against proposals to change a company's purpose or the nature of its business if the board has not provided a credible argument for change.

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**Shareholder proposals**

Shareholders in many markets, who meet certain eligibility criteria, have the right to submit proposals to the general shareholder meeting asking a company to take a particular course of action subject to the proposal being supported by a majority of votes cast at the meeting. The topics raised address a range of governance, social and environmental matters that may be relevant to a company's business.

Shareholder proposals are considered by many investors to be an escalation tool when a company is unresponsive to their engagement.

We vote on these proposals on a case-by-case basis. We assess the relevance of the topic raised to a company's business and its current approach, whether the actions sought are consistent with shareholders' interests, and what impact the proposal being acted upon might have on financial performance.

Our general approach where we have concerns about a company's governance, disclosures or performance is to engage to understand the apparent difference in perspective. If we continue to believe the company is not acting in shareholders' financial interests, we may vote against the election of directors. We may support a relevant shareholder proposal if doing so reinforces the points made in our engagement or is aligned with our clients' financial interests. We generally do not support shareholder proposals that are legally binding on the company, seek to alter a company's strategy or direct its operations, or are unrelated to how a company manages risk or generates financial returns.

BlackRock is subject to legal and regulatory requirements in the U.S. that place restrictions and limitations on how we can interact with the companies in which we invest on behalf of our clients, including our ability to submit shareholder proposals. We can vote on behalf of clients who authorize us to do so, on proposals put forth by others.

**Corporate political activities**

We seek to understand how companies ensure that their direct and indirect engagement in the policy making process is consistent with their public statements on policy matters important to the company's long-term strategy. The board should be aware of the approach taken to corporate political activities as there can be reputational risks arising from inconsistencies. Companies should, as a minimum, meet all regulatory disclosure requirements on political activities, and ideally, provide accessible and clear disclosures to shareholders on policy positions, public policy engagement activities and political donations. To mitigate the risk of inconsistencies, companies can usefully assess the alignment between their policy priorities and the policy positions of the trade associations of which they are active members and any engagements undertaken by trade associations on behalf of members.

Generally, this is an engagement matter, although we may support a relevant shareholder proposal, or vote against directors, where a company's disclosures are insufficient, or it becomes public that there is a material contradiction in a company's public policy positions and its policy engagement.

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**Sustainability, or environmental and social, considerations**

We seek to understand how companies manage the risks and opportunities inherent in their business operations. In our experience, sustainability-related factors<sup>5</sup> that are relevant to a company's business or material to its financial performance, are generally operational considerations embedded into day-to-day management systems. Certain sustainability issues may also inform long-term strategic planning, for example, investing in product innovation in anticipation of changing consumer demand or adapting supply chains in response to changing regulatory requirements.

We recognize that the specific sustainability-related factors that may be financially material or business relevant will vary by company business model, sector, key markets, and time horizon, amongst other considerations. From company disclosures and our engagement, we aim to understand how management is identifying, assessing and integrating material sustainability-related risks and opportunities into their business decision-making and practices. Doing so helps us undertake a more holistic assessment of a company's potential financial performance and the likely risk-adjusted returns of an investment.

We may vote against directors or support a relevant shareholder proposal if we have concerns about how a company is managing or disclosing its approach to material sustainability-related risks that may impact financial returns.

**Key stakeholders**

In our view, companies should understand and take into consideration the interests of the various parties on whom they depend for their success over time. It is for each company to determine their key stakeholders based on what is material to their business and long-term financial performance. For many companies, key stakeholders include employees, business partners (such as suppliers and distributors), clients and consumers, regulators, and the communities in which they operate. Companies that appropriately balance the interests of investors and other stakeholders are, in our experience, more likely to be financially resilient over time.

<sup>5</sup> By material sustainability-related risks and opportunities, we mean the drivers of risk and financial value creation in a company's business model that have an environmental or social dependency or impact. Examples of environmental issues include, but are not limited to, water use, land use, waste management, and climate risk. Examples of social issues include, but are not limited to, human capital management, impacts on the communities in which a company operates, customer loyalty, and relationships with regulators. It is our view that well-managed companies will effectively evaluate and manage material sustainability-related risks and opportunities relevant to their businesses. Governance is the core means by which boards can oversee the creation of durable financial value over time. Appropriate risk oversight of business-relevant and material sustainability-related considerations is a component of a sound governance framework.

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**Climate and decarbonization investment objectives**

Certain active BlackRock funds have climate and decarbonization objectives in addition to financial objectives. Consistent with the objectives of those investment strategies, our stewardship activity in relation to the holdings in those funds differs in some respects from BAIS' benchmark guidelines, which are described above. Specifically, for those funds' holdings, we look to investee companies to demonstrate that they are aligned with a decarbonization pathway that means their business model would be viable in a low-carbon economy, i.e., one in which global temperature rise is limited to 1.5⁰C above pre-industrial levels. This approach is only taken following BlackRock receiving the explicit approval from the applicable fund board.

The decarbonization stewardship guidelines focus on companies which produce goods and services that contribute to real world decarbonization or have a carbon intensive business model and face outsized impacts from the low carbon transition, based on reported and estimated scopes 1, 2, and 3 greenhouse gas emissions. These companies should provide disclosures that set out their governance, strategy, risk management processes and metrics and targets relevant to decarbonization. These disclosures should include an explanation of the decarbonization scenarios a company is using in its near- and long-term planning, as well as its scope 1, scope 2 and material scope 3 greenhouse gas (GHG) emissions and reduction targets for scope 1 and 2 emissions. As with the BAIS benchmark policies, we consider the climate-risk reporting standard issued by the International Sustainability Standards Board, IFRS S2, a useful reference for such reporting.

Under these climate- and decarbonization-specific guidelines, BAIS may recommend a vote against directors or support for a relevant shareholder proposal if a company does not appear to be adequately addressing or disclosing material climate-related risks. We may recommend supporting shareholder proposals seeking information relevant to a company's stated low-carbon transition strategy and targets that the company does not currently provide and that would be helpful to investment decision-making. As under the BAIS benchmark approach, the active portfolio managers are ultimately responsible for voting consistent with their investment mandate and fund objectives.

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**Appendix 1: How we fulfil and oversee our active investment stewardship responsibilities**

**Oversight**

The Global Head of BAIS has primary oversight of and responsibility for the team's activities, including voting in accordance with the BlackRock Active Investment Stewardship Global Engagement and Voting Guidelines ("the Guidelines"), which require the application of professional judgment and consideration of each company's unique circumstances, as well as input from active investors. BAIS is independent from BlackRock Investment Stewardship in our engagement and voting activities, reporting lines, and oversight.

The Active Investment Stewardship Oversight Committee, comprised of senior representatives of the active investment, legal and risk teams, reviews and advises on amendments to BAIS' Global Engagement and Voting Guidelines. The Committee also considers developments in corporate governance, related public policy, and market norms and how these might influence BAIS' policies and practices. The Committee does not determine voting decisions, which are the responsibility of BAIS and the relevant active equity investors.

In addition, there is a standing advisory group of senior active investors who counsel BAIS on complex or high-profile votes before a recommendation is finalized and escalated to the portfolio managers with holdings in the company under consideration. This group also formally reviews any revisions to the Engagement and Voting Guidelines proposed by BAIS as part of its annual review.

BAIS carries out engagement with companies in collaboration with active investment colleagues, executes proxy votes, and conducts vote operations (including maintaining records of votes cast) in a manner consistent with the Guidelines. BAIS also conducts research on corporate governance issues and participates in industry discussions to contribute to and keep abreast of important developments in the corporate governance field. BAIS may use third parties for certain of the foregoing activities and performs oversight of those third parties (see "Use and oversight of third-party vote services providers" below).

**Voting guidelines and vote execution**

BlackRock votes on proxy issues when our clients authorize us to do so. We carefully consider the voting items submitted to funds and other fiduciary account(s) (Fund or Funds) for which we have voting authority. BlackRock votes (or refrains from voting) for each Fund for which we have voting authority based on our evaluation of the alignment of the voting items with the long-term economic interests of our clients, in the exercise of our independent business judgment, and without regard to the relationship of the issuer (or any shareholder proponent or dissident shareholder) to the Fund, the Fund's affiliates (if any), BlackRock or BlackRock's affiliates, or BlackRock employees (see "Conflicts management policies and procedures," below).

When exercising voting rights, BAIS will normally vote on specific proxy issues in accordance with the Guidelines, although portfolio managers have the right to vote differently on their holdings if they determine doing so is more aligned with the investment objective and financial interests of clients invested in the funds they manage.

The Guidelines are not intended to be exhaustive. BAIS applies the Guidelines on a case-by-case basis, in the context of the individual circumstances of each company and the specific issue under review. As such, the Guidelines do not indicate how BAIS will vote in every instance. Rather, they reflect our view about corporate governance issues generally, and provide insight into how we typically approach issues that commonly arise on corporate ballots. The Guidelines are reviewed annually and updated as necessary to reflect changes in market practices, developments in corporate governance and feedback from companies and clients. In this way, BAIS aims to maintain policies that explain our approach to governance practices most aligned with clients' long-term financial interests.

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In certain markets, proxy voting involves logistical issues which can affect BAIS' ability to vote such proxies, as well as the desirability of voting such proxies. These issues include, but are not limited to: i) untimely notice of shareholder meetings; ii) restrictions on a foreigner's ability to exercise votes; iii) requirements to vote proxies in person; iv) "share-blocking" (requirements that investors who exercise their voting rights surrender the right to dispose of their holdings for some specified period in proximity to the shareholder meeting); v) potential difficulties in translating the proxy; vi) regulatory constraints; and vii) requirements to provide local agents with unrestricted powers of attorney to facilitate voting instructions. We are not supportive of impediments to the exercise of voting rights such as share-blocking or overly burdensome administrative requirements.

BlackRock votes proxies in these situations on a "best-efforts" basis. In addition, BAIS may determine that it is generally in the interests of BlackRock's clients not to vote proxies (or not to vote our full allocation) if the costs (including but not limited to opportunity costs associated with share-blocking constraints) associated with exercising a vote are expected to outweigh the benefit the client would derive by voting on the proposal.

**Voting Choice**

BlackRock offers <u>Voting Choice</u>, a program that provides eligible clients with more opportunities to participate in the proxy voting process where legally and operationally viable.

Voting Choice is currently available for eligible clients invested in certain institutional pooled funds in the U.S., UK, and Canada that use systematic active equity (SAE) and multi-asset strategies. In addition, institutional clients in separately managed accounts (SMAs) are eligible for BlackRock Voting Choice regardless of their investment strategies.<sup>6</sup>

As a result, the shares attributed to BlackRock in company share registers may be voted differently depending on whether our clients have authorized BAIS to vote on their behalf, have authorized BlackRock to vote in accordance with a third-party policy, or have elected to vote shares in accordance with their own policy. Our clients have greater control over proxy voting because of Voting Choice.

BlackRock does not disclose client information, including a client's selection of proxy policy, without client consent.

**Use and oversight of third-party vote services providers**

Third-party vote services providers – or proxy research firms - provide research and recommendations on proxy votes, as well as voting infrastructure. As mentioned previously, BlackRock contracts primarily with the vote services provider ISS and leverages its online platform to supply research and support voting, record keeping, and reporting processes. We also use Glass Lewis' research and analysis as an input into our voting process. It is important to note that, although proxy research firms provide important data and analysis, BAIS does not rely solely on their information or follow their voting recommendations. A company's disclosures, our past engagements and voting, investment colleagues' insights and our voting guidelines are important inputs into our voting decisions on behalf of clients.

Given the large universe of actively held companies, BAIS employs the proxy services provider to streamline the voting process by making voting recommendations based on BAIS' voting guidelines when the items on a shareholder meeting agenda are routine. Agenda items that are not routine are referred back to BAIS to assess, escalate as necessary to the relevant portfolio managers and vote. BAIS reviews and can override the recommendations of the vote services provider at any time prior to the vote deadline. Both BAIS and the vote services provider actively monitor securities filings, research reports, company announcements, and direct communications from companies to ensure awareness of supplemental disclosures and proxy materials that may require a modification of votes.

BAIS closely monitors the third-party vote services providers we contract with to ensure that they are meeting our service level expectations and have effective policies and procedures in place to manage potential conflicts of interest. Our oversight of service providers includes regular meetings with client service teams, systematic

<sup>6</sup> With Voting Choice, SMAs have the ability to select from a set of voting policies from third-party proxy advisers the policy that best aligns with their views and preferences. BlackRock can then use its proxy voting infrastructure to cast votes based on the client's selected voting policy.

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monitoring of vendor operations, as well as annual due diligence meetings in accordance with BlackRock's firmwide policies.

**Conflicts management policies and procedures**

BAIS maintains policies and procedures that seek to prevent undue influence on BlackRock's proxy voting activity. Such influence might stem from any relationship between the investee company (or any shareholder proponent or dissident shareholder) and BlackRock, BlackRock's affiliates, a Fund or a Fund's affiliates, or BlackRock employees. The following are examples of sources of perceived or potential conflicts of interest:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• BlackRock clients who may be issuers of securities or proponents of shareholder resolutions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• BlackRock business partners or third parties who may be issuers of securities or proponents of shareholder resolutions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• BlackRock employees who may sit on the boards of public companies held in Funds managed by BlackRock

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Significant BlackRock, Inc. investors who may be issuers of securities held in Funds managed by BlackRock

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Securities of BlackRock, Inc. or BlackRock investment funds held in Funds managed by BlackRock

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• BlackRock, Inc. board members who serve as senior executives or directors of public companies held in Funds managed by BlackRock

BlackRock has taken certain steps to mitigate perceived or potential conflicts including, but not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Adopted the Guidelines which are designed to advance our clients' long-term economic interests in the companies in which BlackRock invests on their behalf

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Established a reporting structure that separates BAIS from employees with sales, vendor management, or business partnership roles. In addition, BlackRock seeks to ensure that all engagements with corporate issuers, dissident shareholders or shareholder proponents are managed consistently and without regard to BlackRock's relationship with such parties. Clients or business partners are not given special treatment or differentiated access. BAIS prioritizes engagements based on factors including, but not limited to, our need for additional information to make a voting decision or our view on the likelihood that an engagement could lead to positive outcome(s) over time for the economic value of the company. Within the normal course of business, BAIS may engage directly with BlackRock clients, business partners and/or third parties, and/or with employees with sales, vendor management, or business partnership roles, in discussions regarding our approach to stewardship, general corporate governance matters, client reporting needs, and/or to otherwise ensure that proxy-related client service levels are met

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Determined to engage, in certain instances, an independent third-party voting service provider to make proxy voting recommendations as a further safeguard to avoid potential conflicts of interest, to satisfy regulatory compliance requirements, or as may be otherwise required by applicable law. In such circumstances, the independent third-party voting service provider provides BlackRock with recommendations, in accordance with the Guidelines, as to how to vote such proxies. BlackRock uses an independent third-party voting service provider to make proxy voting recommendations for shares of BlackRock, Inc. and companies affiliated with BlackRock, Inc. BlackRock may also use an independent third-party voting service provider to make proxy voting recommendations for:

opublic companies that include BlackRock employees on their boards of directors

opublic companies of which a BlackRock, Inc. board member serves as a senior executive or a member of the board of directors

opublic companies that are the subject of certain transactions involving BlackRock Funds

opublic companies that are joint venture partners with BlackRock, and

opublic companies when legal or regulatory requirements compel BlackRock to use an independent third-party voting service provider

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In selecting an independent third-party voting service provider, we assess several characteristics, including but not limited to: independence, an ability to analyze proxy issues and make recommendations in the economic interest of our clients in accordance with the Guidelines, reputation for reliability and integrity, and operational capacity to accurately deliver the assigned recommendations in a timely manner. We may engage more than one independent third-party voting service provider, in part to mitigate potential or perceived conflicts of interest at a single voting service provider. The Active Investment Stewardship Oversight Committee appoints and reviews the performance of the independent third-party voting service providers, generally on an annual basis.

**Securities lending**

When so authorized, BlackRock acts as a securities lending agent on behalf of Funds. Securities lending is a well-regulated practice that contributes to capital market efficiency. It also enables funds to generate additional returns while allowing fund providers to keep fund expenses lower.

With regard to the relationship between securities lending and proxy voting, BlackRock cannot vote shares on loan and may determine to recall them for voting, as guided by our fiduciary duty as an asset manager to our clients in helping them achieve their investment goals. While this has occurred in a limited number of cases, the decision to recall securities on loan as part of BlackRock's securities lending program in order to vote is based on an evaluation of various factors that include, but are not limited to, assessing potential securities lending revenue alongside the potential long-term financial value to clients of voting those securities (based on the information available at the time of recall consideration). BAIS works with active portfolio managers, as well as colleagues in the Securities Lending and Risk and Quantitative Analysis teams, to evaluate the costs and benefits to clients of recalling shares on loan.

In almost all instances, BlackRock anticipates that the potential long-term financial value to clients of voting shares would not warrant recalling securities on loan. However, in certain instances, BlackRock may determine, in our independent business judgment as a fiduciary, that the value of voting outweighs the securities lending revenue loss to clients and would therefore recall shares to be voted in those instances.

Periodically, BlackRock reviews our process for determining whether to recall securities on loan in order to vote and may modify it as necessary.

**Reporting and vote transparency**

BAIS is committed to transparency in the stewardship work we do on behalf of clients. We inform clients about our engagement and voting policies and activities through direct communication and disclosure on our <u>website</u>.

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**Want to know more?**

<u>blackrock.com/stewardship</u> \| <u>ContactActiveStewardship@blackrock.com</u>

The document is provided for information purposes only and is subject to change. Reliance upon this information is at the sole discretion of the reader.

Prepared by BlackRock, Inc.©2024 BlackRock, Inc. All rights reserved. BLACKROCK is a trademark of BlackRock, Inc., or its subsidiaries in the United States and elsewhere. All other trademarks are those of their respective owners.

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**BROWN ADVISORY**

Proxy Voting Policy

November 2024

*Discussion of Brown Advisory's proxy voting policies and procedures.*

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*Brown Advisory (hereafter 'the Firm') considers proxy voting to be an important part of executing our responsibilities to our clients. When clients designate voting authority to the Firm, we seek to vote proxies in line with our fiduciary duty. Overall, the Firm aims to vote in favor of proposals that we believe will maximize shareholder value over time.*

*This policy contains the considerations and preferences that guide our proxy voting on securities—including differences between our process for institutional strategies and for advisory clients—followed by our general Proxy Voting Guidelines, developed in consultation with Institutional Shareholder Services Inc. (ISS).*

*This Policy is designed to ensure that the Firm votes proxies in the best interest of clients, so as to promote the long-term economic value of the underlying securities. These votes are informed by the consideration of any material and applicable information.*

**Governance and Oversight**

Proxy voting is overseen by a Proxy Voting Committee consisting of colleagues from teams around the Firm including equity research, legal and compliance, sustainable investing, client service and operations. The Proxy Voting Committee is responsible for approving any changes to the Proxy Voting Policy. The Proxy Voting Policy is reviewed on at least an annual basis.

**Proxy Advisory Services**

To facilitate the proxy voting process, the Firm has engaged Institutional Shareholder Services Inc. ("ISS"), an unaffiliated, third-party proxy voting service, to provide proxy research and voting recommendations. In addition, the Firm subscribes to ISS's proxy vote management system, which provides a means to receive and vote proxies, as well as services for record-keeping, auditing, reporting and disclosure regarding votes. However, securities held within institutional equity strategies are voted on a case-by-case basis, meaning, we do not rely exclusively on the proxy policy, and complement our proxy provider's research with our own in-house research to arrive at independent decisions, when needed. The Firm will regularly review our relationship with ISS in order to assess its capacity and competency to provide services to the Firm and to review certain of its significant policies and procedures, including those governing conflicts of interests, error identification and correction and processes to evaluate additional information received during the proxy process.

**Voting Responsibilities**

With respect to securities held in our institutional equity strategies, determining how a vote will be cast begins with our research analysts and, ultimately, rests with the portfolio managers for each Brown Advisory strategy. While we use the recommendations of ISS as a baseline for our voting, especially for routine management proposals, we vote each proposal after consideration on a case-by-case basis.

**Client Specific Guidelines**

From time to time, clients may prefer to elect alternative voting guidelines. In cases where a client desires to elect alternative voting guidelines, the Firm will work with the client and ISS to identify appropriate alternative voting guidelines. Where no appropriate pre-defined alternative guidelines are available, the Firm will endeavor to work with the client to define and set up guidelines to vote proxies on a case-by-case basis. If pre- defined alternative ISS policy guidelines are selected that the Firm has not previously implemented, members of the Firm's proxy voting committee will review the policy and determine whether it may be offered to a broader array of clients as part of the on-boarding process. The Firm may recommend a departure from specific aspects of the selected policy's guidelines when it deems such a departure to be in the client's best interest.

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**Institutional Proxy Voting Process**

Proxy voting for our equity strategies that are marketed to the Firm's institutional clients is overseen by a Proxy Voting Committee consisting of colleagues from teams around the Firm including equity research, legal and compliance, sustainable investing and operations.

The Committee is responsible for overseeing the proxy voting process. Determining how a vote will be cast begins with the research analysts and, ultimately, rests with the portfolio managers for each Brown Advisory equity investment strategy. While we use the recommendations generated based on the guidelines contained in this document as a baseline for our voting, especially for routine management proposals, we vote each proposal after consideration on a case-by-case basis.

**For more detail on our Institutional Proxy Voting process, please see pp. 4-5 of this document.**

**Advisory Client Proxy Voting Process**

Proxy voting for our Advisory clients (meaning clients for whom we manage customized accounts in a discretionary relationship according to their goals) is facilitated and monitored by our Proxy Voting Operations team. The team is responsible for arrangements with all custodial partners to have accounts set to electronic omnibus ballot distribution to our proxy voting agency, ISS. When omnibus ballot distribution is not supported, individualized account set up and distribution will be arranged.

Unless otherwise agreed with a client, Brown Advisory's Proxy Voting Policy is assigned by default to our Advisory client accounts. This means that decisions made through the execution of the Institutional Proxy Voting process (including votes against policy) will also be reflected in the voting activity for Advisory Clients.

**For more detail on our Advisory Client Proxy Voting process, please see pp. 5 of this document.**

**Impediments to Vote Execution**

In recognition of its fiduciary obligations, the Firm generally endeavors to vote the proxies it receives. However, the Firm may abstain from voting proxies or allow for votes to be executed in line with the policy before full review is completed in certain circumstances. For example, the Firm may determine that abstaining from voting is appropriate if voting is not in the best interest of the client. In addition to abstentions due to material conflicts of interest, situations in which we would not vote proxies might include:

■Circumstances where the cost of voting the proxy exceeds the expected benefits to the client.

■Circumstances where there are significant impediments to an efficient voting process, including with respect to non-US issuers where the vote requires translations or other burdensome conditions.

■Circumstances where the vote would not reasonably be expected to have a material effect on the value of the client's investment.

■Circumstances where custodial procedural requirements are overly burdensome.

**Reporting and Transparency**

Brown Advisory publishes proxy voting activity for our internally managed funds on its website and provides reporting to clients as required or requested.

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**BROWN ADVISORY PROXY VOTING POLICY ON SECURITIES**

**Proxy Voting Principles for Securities Held within our Institutional Strategies**

The following principles serve as a foundation of our approach to proxy voting for securities held within our institutionally marketed equity strategies. For these securities, Brown Advisory's equity research team has researched the company and generally is well-informed of any issues that are material to the company's business model and practices. As such, we believe we are in a position to engage with companies on these issues both through proxy voting and other engagement practices.

■**Proxy voting is our fiduciary duty.** We hold ourselves responsible for aligning our investment decision- making process and our proxy voting, in order to be consistent about what we seek from companies we hold in our institutional portfolios. We seek investments that are building and protecting long-term shareholder value, and we align all proxy voting activity with this goal. Responsible management of sustainability issues may be one input to achieving long-term shareholder value, and as such, we may support those shareholder proposals that encourage company action on what we believe are material risks or opportunities. However, no goal – sustainability-related or otherwise – will supplant the goal of seeking long-term financial performance.

■**Transparency is essential.** Brown Advisory is committed to providing proxy reporting and standardized disclosure of our voting history, as well as publishing N-PX filings as required by law. Transparency is an important step in helping our clients evaluate whether we uphold our stated principles.

■**Bottom-up due diligence should inform voting decisions.** We seek to review each proposal that comes up for vote. Our analysts seek to dive below the surface and fully understand the implications of especially complex and material proposals. The recommended votes generated based on Brown Advisory's proxy voting guidelines are taken into consideration, but do not determine our final decisions.

■**Proxy voting can be a part of a larger program to encourage better management risks and opportunities that may affect the investment return.** Proxy voting is one way to communicate with companies on risks and opportunities that may present a challenge or present an opportunity for a business, and in turn its investment returns. To complement our proxy voting process, and sometimes as result of it, our investment team might choose to pursue an extended engagement with a company as it relates to any information found during the due-diligence process for determining the vote.

**Institutional Proxy Voting Process**

Members of the Firm's equity research team receive weekly notification of all upcoming meetings taking place at companies in their coverage. Fundamental research analysts guide vote recommendations on management proposals, and sustainable investment research analysts guide vote recommendations on shareholder proposals, with both groups working together to think through the relevant issues. Final vote decisions ultimately are made by the portfolio manager.

Proposals may require additional due diligence and benefit from collaborative investigation, and this is determined on a case-by- case basis. Where necessary, our analysts will conduct research on each proposal, which may include information contained in public filings, policy recommendations and management conversations. To enhance our analysis, we may collaborate with our internal and external networks, the resolution filer and/ or associated coalition, ISS analysts about their recommendation, the company itself and relevant industry experts. If our additional due diligence uncovers factual errors, incompleteness or inaccuracies in the information ISS uses to generate a vote recommendation, the Firm will seek to bring this to the attention of ISS.

In cases where the final voting recommendation is in line with our Proxy Voting Policy, the vote is cast automatically. When our recommendation diverges from the Policy the responsible analyst will contact the portfolio managers who own the company and who have final decision-making power to share their rationale. In most cases, the portfolio managers agree with the analyst's recommendation, in rare cases they may overrule. In either case, the final recommendation is provided to Brown Advisory's operations team, which documents the rationale for the vote and ensures vote execution. All votes cast against policy require approval from the Firm's General Counsel or designee.

In the event that portfolio managers of different strategies disagree on the vote recommendation for a company they all own, a split vote may be conducted. In general, this disagreement is due to portfolio managers having unique views on an issue. When a split vote occurs, the Fund and representative accounts associated with each strategy are voted in line with the portfolio manager's instruction. All other shares of the company held by Brown Advisory are split in a manner that is proportionate to the relative number of shares held across each institutional strategy. Split votes must be approved by the Firm's General Counsel or designee.

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**Advisory Client Voting Process**

Proxy voting for our Advisory clients is facilitated and monitored by our Proxy Voting Operations team. The team is responsible for arrangements with all custodial partners to have accounts set to electronic omnibus ballot distribution to our proxy voting agency, ISS. When omnibus ballot distribution is not supported, individualized account set up and distribution will be arranged. Unless otherwise agreed with a client, Brown Advisory's Proxy Voting Policy is assigned by default to our Advisory client accounts.

The following exceptions can apply to standard voting for Advisory clients:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Client Directed*: A client will always retain her or his authority to request verbally and confirm in writing their request to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Attend a meeting and vote

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Vote in line with account owner request

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Request a take no action or abstention

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• No Voting*: A client, during on-boarding, will have the ability to request accounts to be set to have voting ballots mailed directly to the account owner's address.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Holdings in Funds*: All holdings owned by our Advisory client base also held in our fund complexes are overseen and governed by the voting practices detailed in the Institutional section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Client-specific Guidelines*: Whereas we have a standard policy default, we have the capability to provide our Advisory clients with the option to customize their voting preferences. Should a client desire a customized approach, the Brown Advisory client team will work directly with the client, Brown Advisory Operations, and ISS to establish and implement client-specific guidelines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• No ISS Recommendations*: If a client is invested in a company where ISS will not be supplying voting recommendations (e.g., privately held companies), the analyst covering the company will supply voting recommendations. Should the company not be covered internally, the client's portfolio manager will be notified and asked to instruct the vote.

The following voting practices are applied to separately managed portfolios:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Brown Advisory institutional strategies held in a separately managed account (SMA)*: Holdings within Brown Advisory SMAs are overseen and governed by the Proxy Voting Committee and follow all protocols detailed in the Institutional section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*• Externally managed strategies held in a SMA*: Holdings within an externally managed strategy held as a SMA are set up with the delegated and/or appointed manager for voting. In other terms, Brown Advisory yields voting authority to the appointed manager.

**GENERAL POSITIONS**

Below is a summary of Brown Advisory's general positions for voting on common proxy questions when Brown Advisory is authorized to vote shares at its discretion rather than by a client's specific guidelines. Given the dynamic and wide-ranging nature of corporate governance issues that may arise, this summary is not intended to be exhaustive.

**Management Recommendations**

Since the quality and depth of management is a primary factor considered when investing in an issuer, the recommendation of the issuer's management on any issue will be given substantial weight. Furthermore, Brown Advisory runs concentrated equity portfolios which we believe generally results in holding high quality companies that have strong and trustworthy management teams. This quality bias results in our portfolio managers generally supporting management proposals. Although proxies with respect to most issues are voted in line with the recommendation of the issuer's management, the Firm will not blindly vote in favor of management. The Firm will not support proxy proposals or positions that it believes compromise clients' best interests or that the Firm determines may be detrimental to the underlying value of client positions.

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**Election of Directors**

Although proxies will typically be voted for a management-proposed slate of directors, the Firm may vote against (or withhold votes for) such directors if there are compelling corporate governance reasons for doing so. Some of these reasons may include where a director: attends less than 75% of board and relevant committee meetings; is the CEO of a company where a serious restatement occurred after the CEO certified the financial statements; served at a time when a poison pill was adopted without shareholder approval within the prior year; is the CFO of the company; has an interlocking directorship; has a perceived conflict of interest (or the director's immediate family member has a perceived conflict of interest); or serves on an excessive number of boards.

The Firm seeks to support independent boards of directors comprised of members with diverse backgrounds (including gender and race), a breadth and depth of relevant experience (including sustainability), and a track record of positive, long-term performance. We believe that diverse boards, which incorporate a broad range of perspectives, lead to better investment performance. Therefore, we are committed to using our vote to support this principle. The Firm may vote against any boards that do not have the following levels of diversity (i.e. directors who are women or other underrepresented groups):

■For boards consisting of six or fewer directors, the Firm may vote against the Nominating Committee Chair where the board does not have two diverse directors by 2024.

■For boards consisting of more than six directors, the Firm may vote against the Nominating Committee Chair where the board does not have 30% diverse directors by 2024.

■In cases where the Nominating Committee Chair is not up for re-election, the Firm may vote against other board members including the Chair of the board

Separation of the roles of Chairperson and CEO is generally supported, but the Firm will not vote against a CEO who serves as chairperson or director on this basis alone. In the absence of an independent chairperson, however, the Firm generally supports the appointment of a lead director with authority to conduct sessions outside the presence of the insider chairperson.

The Firm will typically vote against any inside director seeking appointment to a key committee (audit, compensation, nominating or governance), since the Firm believes that the service of independent directors on such committees best protects and enhances the interests of shareholders. Where insufficient information is provided regarding performance metrics, or where pay is not tied to performance (e.g., where management has excessive discretion to alter performance terms or previously defined targets), the Firm will typically vote against the chair of the compensation committee.

**Appointment and Rotation of Auditors**

Management recommendations regarding selection of an auditor shall generally be supported, but the Firm will not support the ratification of an auditor when there appears to be a hindrance on auditor independence, intentional accounting irregularity or negligence by the auditor. Some examples include: when an auditing firm has other relationships with the company that may suggest a conflict of interest; when the auditor bears some responsibility for a restatement by the company; when a company has aggressive accounting policies or lack of transparency in financial statements; and when a company changes auditors as a result of disagreement between the company and the auditor regarding accounting principles or disclosure issues. The firm will generally support proposals for voluntary auditor rotation with reasonable frequency and/or rationale proposals for voluntary auditor rotation with reasonable frequency and/or rationale.

**Changes in State of Incorporation or Capital Structure**

Management recommendations about reincorporation are generally supported unless the new jurisdiction in which the issuer is reincorporating has laws that would dilute the rights of shareholders of the issuer. The Firm will generally vote against reincorporation where it believes the financial benefits are minimal and there is a decrease in shareholder rights. Shareholder proposals to change the company's place of incorporation generally will only be supported in exceptional circumstances.

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Proposals to increase the number of authorized shares will be evaluated on a case-by-case basis. Because adequate capital stock is important to the operation of a company, the Firm will generally support the authorization of additional shares, unless the issuer has not disclosed a detailed plan for use of the shares, or where the number of shares far exceeds those needed to accomplish a detailed plan. Additionally, if the issuance of new shares will limit shareholder rights or could excessively dilute the value of outstanding shares, then such proposals will be supported only if they are in the best interest of the client.

**Corporate Restructurings, Mergers and Acquisitions**

All proposed transactions are reviewed on a case-by-case basis according to their specific merits and drawbacks. Vote recommendations are made based on the review of various factors. Factors that may be considered within the analysis include the reasonableness of the valuation, market response to the announcement of the proposed deal, the fit of the proposed transaction within the company's long-term strategy, management's track record for successful transaction implementation, changes to the governance profile of the company post transaction, and any conflicts of interest that may be present.

**Proposals Affecting Shareholder Rights**

The Firm generally favors proposals that are likely to promote shareholder rights and/or increase shareholder value. Proposals that seek to limit shareholder rights, such as the creation of dual classes of stock, generally will not be supported.

**Anti-takeover Issues**

Measures that impede takeovers or entrench management will be evaluated on a case-by-case basis, considering the rights of shareholders, since the financial interest of shareholders regarding buyout offers is so substantial.

Although the Firm generally opposes anti-takeover measures because they tend to diminish shareholder rights and reduce management accountability, the Firm generally supports proposals that allow shareholders to vote on whether to implement a "poison pill" plan (shareholder rights plan). In certain circumstances, the Firm may support a limited poison pill to accomplish a particular objective, such as the closing of an important merger, or a pill that contains a reasonable 'qualifying offer' provision. The Firm generally supports anti-greenmail proposals, which prevent companies from buying back company stock at significant premiums from a large shareholder.

**Shareholder Action**

The Firm generally supports proposals that allow shareholders to call special meetings, with a minimum threshold of shareholders requesting such a meeting. The Firm believes that best practice for a minimum threshold of shareholders required to call a special meeting is generally considered to be between 20-25%, however the Firm assesses this on a company-by-company basis. Proposals that allow shareholders to act by written consent are also generally supported, if there is a threshold of the minimum number of votes that would be necessary to authorize the action at a meeting at which all shareholders entitled to vote were present and voting. The Firm believes that best practice for a minimum threshold of shareholders required to act by written consent is generally considered to be between 20-25%, however the Firm assesses this on a company-by-company basis. In order to assess the appropriateness of special meeting and written consent provisions the Firm would, for example, consider the make-up of the existing investor base/ownership, to determine whether a small number of investors could easily achieve the required threshold, as well as what other mechanisms or governance provisions already exist for shareholders to access management.

**Proxy Access**

The Firm believes that shareholders should, under reasonable conditions, have the right to nominate directors of a company. The Firm believes that it is generally in the best interest of shareholders for companies to provide shareholders with reasonable opportunity to exercise this right, while also ensuring that short-term investors or investors without substantial investment in the company cannot abuse this right. In general, we believe that the appropriate threshold for proxy access should permit up to 20 shareholders that collectively own 3% or more of the company's outstanding shares for 3 or more years to nominate the greater of 2 directors or 20% of the board's directors, however the Firm assesses this on a case-by-case basis.

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**Supermajority Vote Requirements**

The Firm believes that a simple majority voting requirement is generally the preferred requirement to pass a proposal. Therefore, votes against proposals to establish a supermajority vote requirement are generally in the best interest of shareholders. In circumstances where there is a substantial or dominant shareholder, supermajority voting may be protective of minority shareholder interests therefore proposals instituting these requirements may be appropriate in such circumstances. Shareholder proposals seeking to reduce an existing supermajority voting requirement are generally not supported.

**Executive Compensation**

Although management recommendations should be given substantial weight, proposals relating to executive compensation plans, including stock option plans and other equity-based compensation, should be examined on a case-by- case basis to ensure that the long-term interests of management and shareholders are properly aligned. This alignment includes assessing whether compensation is tied to both material sustainability and financial KPIs. Share count and voting power dilution should be limited.

The Firm generally favors the grant of restricted stock units (RSUs) to executives, since RSUs are an important component of compensation packages that link executives' compensation with their performance and that of the company. The Firm typically opposes caps on executive stock RSUs, since tying an executive's compensation to the performance of the company provides incentive to maximize share value. The Firm also supports equity grants to directors, which help align the interests of outside directors with those of shareholders, although such awards should not be performance-based, so that directors are not incentivized in the same manner as executives.

Proposals to reprice or exchange RSUs are reviewed on a case-by-case basis, but are generally opposed. The Firm generally will support a repricing only in limited circumstances, such as if the stock decline mirrors the market or industry price decline in terms of timing and magnitude and the exchange is not value destructive to shareholders.

Although matters of executive compensation should generally be left to the board's compensation committee, proposals to limit executive compensation will be evaluated on a case-by-case basis.

The Firm generally supports shareholder proposals to allow shareholders an advisory vote on compensation. Absent a compelling reason, companies should submit say-on-pay votes to shareholders every year, since such votes promote valuable communication between the board and shareholders regarding compensation. Where there is an issue involving egregious or excessive bonuses, equity awards or severance payments (including golden parachutes), the Firm will generally vote against a say-on-pay proposal. The Firm may oppose the election of compensation committee members at companies that do not satisfactorily align executive compensation with the interests of shareholders.

**Sustainability-Related Proposals**

Brown Advisory seeks to cast all votes prudently and in line with long-term shareholder value, regardless of the topic on which a particular proposal focuses. Shareholder proposals regarding sustainability issues are evaluated in the same manner as all other proposals. We seek to support those proposals that our evaluation shows will likely have a clear and direct positive financial effect on shareholder value and would not impose unnecessary or excessive costs on the issuer. The sustainability-related proposals we support often result in increased reporting and disclosure, which we believe will benefit investors' due diligence. In rare cases where the Firm believes a company has not adequately mitigated significant and material sustainability risks, the Firm may vote against directors.

**Non-U.S. Proxy Proposals**

For actively recommended issuers domiciled outside the United States, the Firm uses ISS's international proxy voting guidelines, including, in certain circumstances, country-specific guidelines to generate vote recommendations. These proposals are reviewed in the same manner as U.S. proposals, with votes against policy executed when such a vote is deemed to be in line with the promotion of shareholder value.

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**Conflicts of Interest**

A "conflict of interest" means any circumstance when the Firm or one of its affiliates (including officers, directors and employees), or in the case where the Firm serves as investment adviser to a Brown Advisory Fund, when the Fund or the principal underwriter, or one or more of their affiliates (including officers, directors and employees), knowingly does a material amount of business with, receives material compensation from, or sits on the board of, a particular issuer or closely affiliated entity and, therefore, may appear to have a conflict of interest between its own interests and the interests of clients or Fund shareholders in how proxies of that issuer are voted. For example, a perceived conflict of interest may exist if an employee of the Firm serves as a director of an actively recommended issuer, or if the Firm is aware that a client serves as an officer or director of an actively recommended issuer. Conflicts of interest will be resolved in a manner the Firm believes is in the best interest of the client.

The firm should vote proxies relating to such issuers in accordance with the following procedures:

*Routine Matters and Immaterial Conflicts*: The Firm may vote proxies for routine matters, and for non-routine matters that are considered immaterial conflicts of interest, consistent with this Policy. A conflict of interest will be considered material to the extent that it is determined that such conflict has the potential to influence the Firm's decision-making in voting a proxy. Materiality determinations will be made by the Chief Compliance Officer or designee based upon an assessment of the particular facts and circumstances.

*Material Conflicts and Non-Routine Matters*: If the firm believes that (a) it has a material conflict and (b) that the issue to be voted upon is non-routine or is not covered by this Policy, then to avoid any potential conflict of interest:

■In the case of a Fund, the Firm shall contact the Fund board for a review and determination.

■In the case of all other conflicts or potential conflicts, the Firm may "echo vote" such shares, if possible, which means the Firm will vote the shares in the same proportion as the vote of all other holders of the issuer's shares; OR in cases when echo voting is not possible, the Firm may defer to ISS recommendations, abstain or vote in a manner that the Firm, in consultation with the General Counsel, believes to be in the best interest of the client.

■If the aforementioned options would not address or ameliorate the conflict or potential conflict, then the Firm may abstain from voting.

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The views expressed are those of the author and Brown Advisory as of the date referenced and are subject to change at any time based on market or other conditions. These views are not intended to be and should not be relied upon as investment advice and are not intended to be a forecast of future events or a guarantee of future results. Past performance is not a guarantee of future performance and you may not get back the amount invested.

The information provided in this material is not intended to be and should not be considered to be a recommendation or suggestion to engage in or refrain from a particular course of action or to make or hold a particular investment or pursue a particular investment strategy, including whether or not to buy, sell, or hold any of the securities mentioned. It should not be assumed that investments in such securities have been or will be profitable. To the extent specific securities are mentioned, they have been selected by the author on an objective basis to illustrate views expressed in the commentary and do not represent all of the securities purchased, sold or recommended for advisory clients. The information contained herein has been prepared from sources believed reliable but is not guaranteed by us as to its timeliness or accuracy, and is not a complete summary or statement of all available data. This piece is intended solely for our clients and prospective clients, is for informational purposes only, and is not individually tailored for or directed to any particular client or prospective client.

Sustainable investment considerations are one of multiple informational inputs into the investment process, alongside data on traditional financial factors, and so are not the sole driver of decision-making. Sustainable investment analysis may not be performed for every holding in a strategy. Sustainable investment considerations that are material will vary by investment style, sector/industry, market trends and client objectives. Sustainable investment strategies ("Strategies") seek to identify companies that they believe may be desirable based on our analysis of sustainable investment related risks and opportunities, but investors may differ in their views. As a result, the Strategies may invest in companies that do not reflect the beliefs and values of any particular investor. The Strategies may also invest in companies that would otherwise be excluded from other funds that focus on sustainable investment risks. Security selection will be impacted by the combined focus on sustainable investment research assessments and fundamental research assessments including the return forecasts. The Strategies incorporate data from third parties in their research process but do not make investment decisions based on third-party data alone.

Brown Advisory relies on third parties to provide data and screening tools. There is no assurance that this information will be accurate or complete or that it will properly exclude all applicable securities. Investments selected using these tools may perform differently than as forecasted due to the factors incorporated into the screening process, changes from historical trends, and issues in the construction and implementation of the screens (including, but not limited to, software issues and other technological issues). There is no guarantee that Brown Advisory's use of these tools will result in effective investment decisions.

www.brownadvisory.com

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**CAUSEWAY CAPITAL MANAGEMENT LLC**

**Proxy Voting Policies and Procedures**

June 30, 2021

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**Overview**

As an investment adviser with fiduciary responsibilities to its clients, Causeway Capital Management LLC ("Causeway") votes the proxies of companies owned by investment vehicles managed and sponsored by Causeway, and institutional and private clients who have granted Causeway such voting authority. Causeway has adopted these Proxy Voting Policies and Procedures to govern how it performs and documents its fiduciary duty regarding the voting of proxies.

Proxies are voted solely in what Causeway believes is the best interests of the client, a fund's shareholders or, where employee benefit assets are involved, plan participants and beneficiaries (collectively "clients"). Causeway's intent is to vote proxies, wherever possible to do so, in a manner consistent with its fiduciary obligations. Practicalities involved in international investing may make it impossible at times, and at other times disadvantageous, to vote proxies in every instance.

The Chief Operating Officer of Causeway supervises the proxy voting process. Proxy voting staff monitor upcoming proxy votes, review proxy research, identify potential conflicts of interest and escalate such issues to the Chief Operating Officer, receive input from portfolio managers, and ultimately submit proxy votes in accordance with these Proxy Voting Policies and Procedures. The Chief Operating Officer and President have final decision-making authority over case-by-case votes. To assist in fulfilling its responsibility for voting proxies, Causeway currently uses Institutional Shareholder Services Inc. ("ISS") for proxy research, which assists the decision-making process, and for proxy voting services, which include organizing and tracking pending proxies, communicating voting decisions to custodian banks, and maintaining records. Causeway will conduct periodic due diligence on ISS and its capacity and competency to provide proxy research and the proxy voting services provided to Causeway.

**Proxy Voting Guidelines**

Causeway generally votes on specific matters in accordance with the proxy voting guidelines set forth below. However, Causeway reserves the right to vote proxies on behalf of clients on a case-by-case basis if the facts and circumstances so warrant.

Causeway's proxy voting guidelines are designed to cast votes consistent with certain basic principles: (i) increasing shareholder value; (ii) maintaining or increasing shareholder influence over the board of directors and management; (iii) establishing and enhancing strong and independent boards of directors; (iv) maintaining or increasing the rights of shareholders; and (v) aligning the interests of management and employees with those of shareholders with a view toward the reasonableness of executive compensation and shareholder dilution. Causeway's guidelines also recognize that a company's management is charged with day-to-day operations and, therefore, Causeway generally votes on routine business matters in favor of management's proposals or positions.

Causeway generally votes *for*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• distributions of income

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• appointment of auditors

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• director compensation, unless deemed excessive

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• boards of directors – Causeway generally votes for management's slate of director nominees. However, it votes against incumbent nominees with poor attendance records, or who have otherwise acted in a manner Causeway believes is not in the best interests of shareholders. Causeway recognizes that, in certain jurisdictions, local law or regulation may influence Board composition.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• financial results/director and auditor reports

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• share repurchase plans

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changing corporate names and other similar matters

Causeway generally votes the following matters on a *case-by-case* basis:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• amendments to articles of association or other governing documents

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in board or corporate governance structure

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in authorized capital including proposals to issue shares

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• compensation – Causeway believes that it is important that a company's equity-based compensation plans, including stock option or restricted stock plans, are aligned with the interests of shareholders, including Causeway's clients, and focus on observable long-term returns. Causeway evaluates compensation plans on a case-by-case basis, with due consideration of potential consequences of a particular compensation plan. Causeway generally opposes packages that it believes provide excessive awards or create excessive shareholder dilution. Causeway generally opposes proposals to reprice options because the underlying stock has fallen in value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• social and environmental issues – Causeway believes that it is generally management's responsibility to address such issues within the context of increasing long-term shareholder value. To the extent that management's position on a social or environmental issue is inconsistent with increasing long-term shareholder value, Causeway may vote against management or abstain. Causeway may also seek to engage in longer-term dialogue with management on these issues, either separately or in connection with proxy votes on the issue.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• debt issuance requests

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• mergers, acquisitions and other corporate reorganizations or restructurings

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• changes in state or country of incorporation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• related party transactions

Causeway generally votes *against*:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• anti-takeover mechanisms – Causeway generally opposes anti-takeover mechanisms including poison pills, unequal voting rights plans, staggered boards, provisions requiring supermajority approval of a merger and other matters that are designed to limit the ability of shareholders to approve merger transactions.

**Conflicts of Interest**

Causeway's interests may, in certain proxy voting situations, be in conflict with the interests of clients. Causeway may have a conflict if a company that is soliciting a proxy is a client of Causeway or is a major business partner or vendor for Causeway. Causeway may also have a conflict if Causeway personnel have significant business or personal relationships with participants in proxy contests, corporate directors or director candidates.

The Chief Operating Officer determines the issuers with which Causeway may have a significant business relationship. For this purpose, a "significant business relationship" is one that: (1) represents 1.5% or more of Causeway's prior calendar year gross revenues; (2) represents $2,000,000 or more in payments from a sponsored vehicle during the prior calendar year; or (3) may not directly involve revenue to Causeway or payments from its sponsored vehicles, but is otherwise determined by the Chief Operating Officer to be significant to Causeway or its affiliates or sponsored vehicles, such as a primary service provider of a fund or vehicle managed and sponsored by Causeway, or a significant relationship with the company that might create an incentive for Causeway to vote in favor of management.

The Chief Operating Officer will identify issuers with which Causeway's employees who are involved in the proxy voting process may have a significant personal or family relationship. For this purpose, a "significant personal or family relationship" is one that would be reasonably likely to influence how Causeway votes proxies.

Proxy voting staff will seek to identify potential conflicts of interest in the first instance and escalate relevant information to the Chief Operating Officer. The Chief Operating Officer will reasonably investigate information relating to conflicts of interest. For purposes of identifying conflicts under this policy, the Chief Operating Officer will rely on publicly available information about Causeway and its affiliates, information about Causeway and its affiliates that is generally known by Causeway's employees, and other information actually known by the Chief Operating Officer. Absent actual knowledge, the Chief Operating Officer is not required to investigate possible conflicts involving Causeway where the information is (i) non-public, (ii) subject to information blocking procedures, or (iii) otherwise not readily available to the Chief Operating Officer.

Proxy voting staff will maintain a list of issuers with which there may be a conflict and will monitor for potential conflicts of interest on an ongoing basis.

Proxy proposals that are "routine," such as uncontested elections of directors or those not subject to a vote withholding campaign, meeting formalities, and approvals of annual reports/financial statements are presumed not to involve material conflicts of interest. For non-routine proposals, the Chief Operating Officer in consultation with Causeway's General Counsel/Chief Compliance Officer decides if they involve a material conflict of interest.

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If a proposal is determined to involve a material conflict of interest, Causeway may, but is not required to, obtain instructions from the client on how to vote the proxy or obtain the client's consent for Causeway's vote. If Causeway does not seek the client's instructions or consent, Causeway will vote as follows:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If a "for" or "against" or "with management" guideline applies to the proposal, Causeway will vote in accordance with that guideline.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If a "for" or "against" or "with management" guideline does not apply to the proposal, Causeway will follow the recommendation of an independent third party such as ISS. If Causeway seeks to follow the recommendation of a third party, the Chief Operating Officer will assess the third party's capacity and competency to analyze the issue, as well as the third party's ability to identify and address conflicts of interest it may have with respect to the recommendation.

To monitor potential conflicts of interest regarding the research and recommendations of independent third parties, such as ISS, proxy voting staff will review the third party's disclosures of significant relationships. The Chief Operating Officer will review proxy votes involving issuers where a significant relationship has been identified by the proxy research provider.

**Practical Limitations Relating to Proxy Voting**

While the proxy voting process is well established in the United States and other developed markets with numerous tools and services available to assist an investment manager, voting proxies of non-US companies located in certain jurisdictions may involve a number of problems that may restrict or prevent Causeway's ability to vote such proxies. These problems include, but are not limited to: (i) proxy statements and ballots being written in a language other than English; (ii) untimely and/or inadequate notice of shareholder meetings relative to deadlines required to submit votes; (iii) restrictions on the ability of holders outside the issuer's jurisdiction of organization to exercise votes; (iv) requirements to vote proxies in person; (v) restrictions on the sale of the securities for a period of time prior to the shareholder meeting; and (vi) requirements to provide local agents with powers of attorney (which Causeway will typically rely on clients to maintain) to facilitate Causeway's voting instructions. As a result, Causeway will only use its best efforts to vote clients' non-US proxies and Causeway may decide not to vote a proxy if it determines that it would be impractical or disadvantageous to do so.

In addition, regarding US and non-US companies, Causeway will not vote proxies if it does not receive adequate information from the client's custodian in sufficient time to cast the vote.

For clients with securities lending programs, Causeway may not be able to vote proxies for securities that a client has loaned to a third party. Causeway recognizes that clients manage their own securities lending programs. Causeway may, but is not obligated to, notify a client that Causeway is being prevented from voting a proxy due to the securities being on loan. There can be no assurance that such notice will be received in time for the client, if it so chooses, to recall the security.

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**EMERALD ADVISERS, LLC.**

**EMERALD MUTUAL FUND ADVISERS TRUST**

**EMERALD SEPARATE ACCOUNT MANAGEMENT**

PROXY VOTING POLICY

March 2025

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The voting policies set forth below apply to all proxies which Emerald Advisers, LLC. and subsidiaries are entitled to vote. It is Emerald's policy to vote all such proxies. Corporate governance through the proxy process is solely concerned with the accountability and responsibility for the assets entrusted to corporations. The role of institutional investors in the governance process is the same as the responsibility due all other aspects of the fund's management. First and foremost, the investor is a fiduciary and secondly, an owner. Fiduciaries and owners are responsible for their investments. These responsibilities include:

1)selecting proper directors

2)ensuring that these directors have properly supervised management

3)resolve issues of natural conflict between shareholders and managers

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Compensation

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Corporate Expansion

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Dividend Policy

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Free Cash Flow

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.Various Restrictive Corporate Governance Issues, Control Issues, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.Preserving Integrity

In voting proxies, Emerald will consider those factors which would affect the value of the investment and vote in the manner, which in its view, will best serve the economic interest of its clients. Consistent with this objective, Emerald will exercise its vote in a activist pro-shareholder manner in accordance with the following policies.

**I. BOARDS OF DIRECTORS**

In theory, the board represents shareholders, in practice, all to often Board members are selected by management. Their allegiance is therefore owed to management in order to maintain their very favorable retainers and prestigious position. In some cases, corporations never had a nominating process, let alone criteria for the selection of Board members. Shareholders have begun to focus on the importance of the independence of the Board of Directors and the nominating process for electing these Board members. Independence is an important criterium to adequately protect shareholders' ongoing financial interest and to properly conduct a board member's oversight process. Independence though, is only the first criteria for a Board. Boards need to be responsible fiduciaries in their oversight and decision making on behalf of the owners and corporations. Too many companies are really ownerless. Boards who have failed to perform their duties, or do not act in the best interests of the shareholders should be voted out. A clear message is sent when a no confidence vote is given to a set of directors or to a full Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.Election of Directors**, a Board of Directors, or any number of Directors. In order to assure Boards are acting solely for the shareholders they represent, the following resolutions will provide a clear message to underperforming companies and Boards who have failed to fulfill duties assigned to them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Votes should be cast in favor of shareholder proposals asking that boards be comprised of a majority of outside directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Votes should be cast in favor of shareholder proposals asking that board audit, compensation and nominating committees be comprised exclusively of outside directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Votes should be cast against management proposals to re-elect the board if the board has a majority of inside directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Votes should be withheld for directors who may have an inherent conflict of interest by virtue of receiving consulting fees from a corporation (affiliated outsiders).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Votes should be withheld, on a case by case basis, for those directors of the compensation committees responsible for particularly egregious compensation plans.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Votes should be withheld for directors who have failed to attend 75% of board or committee meetings in cases where management does not provide adequate explanation for the absences.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Votes should be withheld for incumbent directors of poor performing companies; defining poor performing companies as those companies who have below average stock performance (vs. peer group/Wilshire 5000) and below average return on assets and operating margins.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Votes should be cast in favor of proposals to create shareholder advisory committees. These committees will represent shareholders' views, review management, and provide oversight of the board and their directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.Selection of Accountants:** Emerald will generally support a rotation of accountants to provide a truly independent audit. This rotation should generally occur every 4-5 years.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.Incentive Stock Plans.** Emerald will generally vote against all excessive compensation and incentive stock plans which are not performance related.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.Corporate restructuring plans** or company name changes, will generally be evaluated on a case by case basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.Annual Meeting Location.** This topic normally is brought forward by minority shareholders, requesting management to hold the annual meeting somewhere other than where management desires. **Resolution.** Emerald normally votes with management, except in those cases where management seeks a location to avoid their shareholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F.Preemptive Rights.** This is usually a shareholder request enabling shareholders to participate first in any new offering of common stock. **Resolution:** We do not feel that preemptive rights would add value to shareholders, we would vote against such shareholder proposals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G.Mergers and/or Acquisitions.** Each merger and/or acquisition has numerous ramifications for long term shareholder value. **Resolution:** After in-depth valuation Emerald will vote its shares on a case by case basis.

**II. CORPORATE GOVERNANCE ISSUES**

These issues include those areas where voting with management may not be in the best interest of the institutional investor. All proposals should be examined on a case by case basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.Provisions Restricting Shareholder Rights.** These provisions would hamper shareholders ability to vote on certain corporate actions, such as changes in the bylaws, greenmail, poison pills, recapitalization plans, golden parachutes, and on any item that would limit shareholders' right to nominate, elect, or remove directors. These items can change the course of the corporation overnight and shareholders should have the right to vote on these critical issues. **Resolution:** <u>Vote</u> **<u>Against</u>** <u>management proposals to implement such restrictions and vote</u> **<u>For</u>** <u>shareholder proposals to eliminate them.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.Anti-Shareholder Measures**. These are measures designed to entrench management so as to make it more difficult to effect a change in control of the corporation. They are normally not in the best interests of shareholders since they do not allow for the most productive use of corporate assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Classification of the Board of Directors:**

A classified Board is one in which directors are not elected in the same year rather their terms of office are staggered. This eliminates the possibility of removing entrenched management at any one annual election of directors. **Resolution:** <u>Vote</u> **<u>Against</u>** <u>proposals to classify the Board and support proposals (usually shareholder initiated) to implement annual election of the Board.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Shareholder Rights Plans (Poison Pills):**

Anti-acquisition proposals of this sort come in a variety of forms. In general, issuers confer contingent benefits of some kind on their common stockholders. The most frequently used benefit is the right to

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buy shares at discount prices in the event of defined changes in corporate control. **Resolution:** <u>Vote</u> **<u>Against</u>** <u>proposals to adopt Shareholder Rights Plans, and vote</u> **<u>For</u>** <u>Shareholder proposals eliminating such plans.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Unequal Voting Rights:**

A takeover defense, also known as superstock, which gives holders disproportionate voting rights. Emerald adheres to the One Share, One Vote philosophy, as all holders of common equity must be treated fairly and equally. **Resolution:** <u>Vote</u> **<u>Against</u>** <u>proposals creating different classes of stock with unequal voting privileges.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Supermajority Clauses:**

These are implemented by management requiring that an overly large amount of shareholders (66-95% of shareholders rather than a simple majority) approve business combinations or mergers, or other measures affecting control. This is another way for management to make changes in control of the company more difficult. **Resolution:** <u>Vote</u> **<u>Against</u>** <u>management proposals to implement supermajority clauses and support shareholder proposals to eliminate them.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Fair Price Provisions:**

These provisions allow management to set price requirements that a potential bidder would need to satisfy in order to consummate a merger. The pricing formulas normally used are so high that the provision makes any tender offer prohibitively expensive. Therefore, their existence can foreclose the possibility of tender offers and hence, the opportunity to secure premium prices for holdings. **Resolution:** <u>Vote</u> **<u>Against</u>** <u>management proposals to implement fair price provisions and vote</u> **<u>For</u>** <u>shareholder proposals to eliminate them.</u>

**Caveat:** Certain fair price provisions are legally complex and require careful analysis and advice before concluding whether or not their adoption would serve stockholder interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. Increases in authorized shares and/or creation of new classes of common and preferred stock:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Increasing authorized shares.

Emerald will support management if they have a stated purpose for increasing the authorized number of common and preferred stock. Under normal circumstances, this would include stock splits, stock dividends, stock option plans, and for additional financing needs. However, in certain circumstances, it is apparent that management is proposing these increases as an anti-takeover measure. When used in this manner, share increases could inhibit or discourage stock acquisitions by a potential buyer, thereby negatively affecting a fair price valuation for the company.

**Resolution:** <u>On a case by case basis, vote</u> **<u>Against</u>** <u>management if they attempt to increase the amount of shares that they are authorized to issue if their intention is to use the excess shares to discourage a beneficial business combination. One way to determine if management intends to abuse its right to issue shares is if the amount of authorized shares requested is double the present amount of authorized shares.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Creation of new classes of stock.

Managements have proposed authorizing shares of new classes of stock, usually preferreds, which the Board would be able to issue at their discretion. The Board would also be granted the discretion to determine the dividend rate, voting privileges, redemption provisions, conversion rights, etc. without approval of the shareholders. These "blank check" issues are designed specifically to inhibit a takeover, merger, or accountability to its shareholders.

**Resolution:** <u>Emerald would vote AGAINST management in allowing the Board the discretion to issue any type of "blank check" stock without shareholder approval.</u>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Directors and Management Liability and Indemnification.

These proposals are a result of the increasing cost of insuring directors and top management against lawsuits. Generally, managements propose that the liability of directors and management be either eliminated or limited. Shareholders must have some recourse for losses that are caused by negligence on the part of directors and management. Therefore directors and management should be responsible for their fiduciary duty of care towards the company. The Duty of Care is defined as the obligation of directors and management to be diligent in considering a transaction or in taking or refusing to take a corporate action.

**Resolution:** <u>On a case by case basis, Emerald votes</u> **<u>Against</u>** <u>attempts by management to eliminate directors and management liability for their duty of care.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Compensation Plans (Incentive Plans)

Management occasionally will propose to adopt an incentive plan which will become effective in the event of a takeover or merger. These plans are commonly known as "golden parachutes" or "tin parachutes" as they are specifically designed to grossly or unduly benefit a select few in management who would most likely lose their jobs in an acquisition. Shareholders should be allowed to vote on all plans of this type.

**Resolution:** <u>On a case by case basis, vote</u> **<u>Against</u>** <u>attempts by management to adopt proposals that are specifically designed to grossly or unduly benefit members of executive management in the event of an acquisition.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.Greenmail

Emerald would not support management in the payment of greenmail.

**Resolution:** <u>Emerald would vote</u> **<u>FOR</u>** <u>any shareholder resolution that would eliminate the possibility of the payment of greenmail.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.Cumulative Voting

Cumulative voting entitles stockholders to as many votes as equal the number of shares they own multiplied by the number of directors being elected. According to this set of rules, a shareholder can cast all votes towards a single director, or any two or more. This is a proposal usually made by a minority shareholder seeking to elect a director to the Board who sympathizes with a special interest. It also can be used by management that owns a large percentage of the company to ensure that their appointed directors are elected.

**Resolution:** <u>Cumulative voting tends to serve special interests and not those of shareholders, therefore Emerald will vote</u> **<u>Against</u>** <u>any proposals establishing cumulative voting and</u> **<u>For</u>** <u>any proposal to eliminate it.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.Proposals Designed to Discourage Mergers & Acquisitions In Advance

These provisions direct Board members to weigh socioeconomic and legal as well as financial factors when evaluating takeover bids. This catchall apparently means that the perceived interests of customers, suppliers, managers, etc., would have to be considered along with those of the shareholder. These proposals may be worded: "amendments to instruct the Board to consider certain factors when evaluating an acquisition proposal". Directors are elected primarily to promote and protect the shareholder interests. Directors should not allow other considerations to dilute or deviate from those interests. **Resolution:** <u>Emerald will vote</u> **<u>Against</u>** <u>proposals that would discourage the most productive use of corporate assets in advance.</u>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;h.Confidential Voting

A company that does not have a ballot provision has the ability to see the proxy votes before the annual meeting. In this way, management is able to know before the final outcome how their proposals are being accepted. If a proposal is not going their way, management has the ability to call shareholders to attempt to convince them to change their votes. Elections should take place in normal democratic process which includes the secret ballot. Elections without the secret ballot can lead to coercion of shareholders, employees, and other corporate partners. **Resolution:** <u>Vote</u> **<u>For</u>** <u>proposals to establish secret ballot voting.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.Disclosure

**Resolution:** <u>Emerald will vote</u> **<u>Against</u>** <u>proposals that would require any kind of unnecessary disclosure of business records. Emerald will vote</u> **<u>For</u>** <u>proposals that require disclosure of records concerning unfair labor practices or records dealing with the public safety.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;j.Sweeteners

**Resolution:** <u>Emerald will vote</u> **<u>Against</u>** <u>proposals that include what are called "sweeteners" used to entice shareholders to vote for a proposal that includes other items that may not be in the shareholders best interest. For instance, including a stock split in the same proposal as a classified Board, or declaring an extraordinary dividend in the same proposal installing a shareholders rights plan (Poison Pill).</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;k.Changing the State of Incorporation

If management sets forth a proposal to change the State of Incorporation, the reason for change is usually to take advantage of another state's liberal corporation laws, especially regarding mergers, takeovers, and anti-shareholder measures. Many companies view the redomestication in another jurisdiction as an opportune time to put new anti-shareholder measures on the books or to purge their charter and bylaws of inconvenient shareholder rights, written consent, cumulative voting, etc. **Resolution:** <u>On a case-by-case basis, Emerald will vote</u> **<u>Against</u>** <u>proposals changing the State of Incorporation for the purpose of their anti-shareholder provisions and will support shareholder proposals calling for reincorporation into a jurisdiction more favorable to shareholder democracy.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;l.Equal Access to Proxy Statements

Emerald supports stockholders right to equal access to the proxy statement, in the same manner that management has access. Stockholders are the owners of a corporation and should not be bound by timing deadlines and other obstacles that presently shareholders must abide by in sponsoring proposals in a proxy statement. The Board should not have the ability to arbitrarily prevent a shareholder proposal from appearing in the proxy statement. **Resolution:** <u>Emerald will support any proposal calling for equal access to proxy statements.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;m.Abstention Votes

Emerald supports changes in the method of accounting for abstention votes. Abstention votes should <u>not</u> be considered as shares "represented" or "cast" at an annual meeting. Only those shares cast <u>favoring or opposing</u> a proposal should be included in the total votes cast to determine if a majority vote has been achieved. Votes cast abstaining should not be included in total votes cast. **Resolution:** <u>Emerald will support any proposal to change a company's by-laws or articles of incorporation to reflect the proper accounting for abstention votes.</u>

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**III. Other Issues**

On other major issues involving questions of community interest, moral and social concern, fiduciary trust and respect for the law such as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.Human Rights

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.Nuclear Issues

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.Defense Issues

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.Social Responsibility

Emerald, in general supports the position of management. Exceptions to this policy Include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.South Africa**

Emerald will actively encourage those corporations that have South African interests to adopt and adhere to the Statement of Principles for South Africa, formerly known as the Sullivan Principles, and to take further actions to promote responsible corporate activity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.Northern Ireland**

Emerald will actively encourage U.S. companies in Northern Ireland to adopt and adhere to the MacBride Principles, and to take further actions to promote responsible corporate activity.

**IV. Other Potential Conflicts of Interest**

Emerald may manage a variety of corporate accounts that are publicly traded.

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**GRANTHAM, MAYO, VAN OTTERLOO & CO. LLC ("GMO")**

Proxy Voting Policy

Adoption: August 6, 2003

Last Revision: February 2025

GMO LLC and related entities<sup>1</sup>

(collectively, "GMO")

<sup>1</sup> Grantham, Mayo, Van Otterloo & Co. LLC, GMO Australia Limited, and GMO Singapore Pte. Ltd.

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**I.Statement of Policy**

Proxy voting is an important right of shareholders and reasonable care and diligence must be undertaken to seek to ensure that such rights are properly and timely exercised. Grantham, Mayo, Van Otterloo & Co. LLC ("GMO") manages a variety of products and GMO's proxy voting authority may vary depending on the type of product or specific client preferences. GMO retains full proxy voting discretion for accounts comprised of comingled client assets. However, GMO's proxy voting authority may vary for accounts that GMO manages on behalf of individual clients. These clients may retain full proxy voting authority for themselves, grant GMO full discretion to vote proxies on their behalf, or provide GMO with proxy voting authority along with specific instructions and/or custom proxy voting guidelines. Where GMO has been granted discretion to vote proxies on behalf of managed account clients this authority must be explicitly defined in the relevant Investment Management Agreement, or other document governing the relationship between GMO and the client.

In exercising its proxy voting authority, GMO is mindful of the fact that the value of proxy voting to a client's investments may vary depending on the nature of an individual voting matter and the strategy in which a client is invested. Some GMO strategies follow a systematic, research- driven investment approach, applying quantitative tools to process fundamental information and manage risk. Some proxy votes may have heightened value for certain clients, such as votes on corporate events (e.g., mergers and acquisitions, dissolutions, conversions, or consolidations) for those clients invested in GMO strategies involving the purchase of securities around corporate events. These differences may result in varying levels of GMO engagement in proxy votes, but in all cases where GMO retains proxy voting authority, it will seek to vote proxies in the best interest of its clients and in accordance with this Proxy Voting Policy and Procedures (the "Policy").

GMO's Stewardship and Corporate Leadership Subcommittee, a sub-committee of the GMO ESG Oversight Committee, is responsible for the implementation of this Policy, including the oversight and use of third-party proxy advisers, the manner in which GMO votes its proxies, and fulfilling GMO's obligation voting proxies in the best interest of its clients.

**II.Use of Third-Party Proxy Advisors**

GMO has retained an independent third-party Proxy Advisory firm for a variety of services including, but not limited to, receiving proxy ballots, proxy voting research and recommendations, and executing votes. GMO may also engage other Proxy Advisory firms as appropriate for proxy voting research and other services.

**III.Considerations When Assessing or Considering a Proxy Advisory Firm**

When considering the engagement of a new, or the performance and retention of an existing, Proxy Advisory firm to provide research, voting recommendations, or other proxy voting related services, GMO will, as part of its assessment, consider:

▪ The capacity and competency of the Proxy Advisory firm to adequately analyze the matters up for a vote;

▪ The ability of the Proxy Advisory firm to provide information supporting its recommendations in a timely manner;

▪ The ability of the Proxy Advisory firm to respond to ad hoc requests from GMO;

▪ Whether the Proxy Advisory firm has an effective process for obtaining current and accurate information including from issuers and clients (e.g., engagement with issuers, efforts to correct deficiencies, disclosure about sources of information and methodologies, etc.);

▪ How the Proxy Advisory firm incorporates appropriate input in formulating its methodologies and construction of issuer peer groups, including unique characteristics regarding an issuer;

▪ Whether the Proxy Advisory firm has adequately disclosed its methodologies and application in formulating specific voting recommendations;

▪ The nature of third-party information sources used as a basis for voting recommendations;

▪ When and how the Proxy Advisory firm would expect to engage with issuers and other third parties;

▪ Whether the Proxy Advisory firm has established adequate policies and procedures on how it identifies, discloses and addresses conflicts of interests that arise from providing proxy voting recommendations and related services, from activities other than providing proxy voting recommendations and services, and from Proxy Advisory firm affiliations;

▪ Whether the Proxy Advisory firm has established adequate diversity and inclusion practices;

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▪ Information regarding any errors, deficiencies, or weaknesses that may materially affect the Proxy Advisory firm's research or ultimate recommendation;

▪ Whether the Proxy Advisory firm appropriately and regularly updates methodologies, guidelines, and recommendations, including in response to feedback from issuers and their shareholders;

▪ Whether the Proxy Advisory firm adequately discloses any material business changes taking into account any potential conflicts of interests that may arise from such changes.

GMO also undertakes periodic sampling of proxy votes as part of its assessment of a Proxy Advisory firm and in order to reasonably determine that proxy votes are being cast on behalf of its clients consistent with this Policy.

**IV.Potential Conflicts of Interest of the Proxy Advisor**

GMO requires any Proxy Advisory firm it engages with to identify and provide information regarding any material business changes or conflicts of interest on an ongoing basis. Where a conflict of interest may exist, GMO requires information on how said conflict is being addressed. If GMO determines that a material conflict of interest exists and is not sufficiently mitigated, GMO's Stewardship and Corporate Leadership Subcommittee will determine whether the conflict has an impact on the Proxy Advisory firm's voting recommendations, research, or other services and determine if any action should be taken.

**V.Voting Procedures and Approach**

In relation to stocks held in GMO funds and accounts where GMO has proxy voting discretion, GMO will, as a general rule, seek to vote in accordance with this Policy and the applicable guidelines GMO has developed to govern voting recommendations from its Proxy Advisory firm ("GMO Voting Guidelines"). In instances where a separate account client has provided GMO with specific instructions and/or custom proxy voting guidelines, GMO will seek to vote proxies in line with such instructions or custom guidelines.

GMO may refrain from voting in certain situations unless otherwise agreed to with a client. These situations include, but are not limited to, when:

1. The cost of voting a proxy outweighs the benefit of voting;

2. GMO does not have enough time to process and submit a vote due to the timing of proxy information transfer or other related logistical or administrative issues;

3. GMO has an outstanding sell order or intends to sell the applicable security prior to the voting date;

4. There are restrictions on trading resulting from the exercise of a proxy;

5. Voting would cause an undue burden to GMO (e.g., votes occurring in jurisdictions with beneficial ownership disclosure and/or Power of Attorney requirements); or

6. GMO has agreed with the client in advance of the vote not to vote in certain situations or on specific issues.

GMO generally does not notify clients of non-voted proxy ballots.

Some of GMO's strategies primarily focus on portfolio management and research related to macro trading strategies which are implemented through the use of derivatives. These strategies typically do not hold equity securities with voting rights.

**VI.Voting Guidelines**

GMO seeks to vote proxies in a manner that encourages and rewards behavior that supports the creation of sustainable long-term growth, and in a way consistent with the investment mandate of the assets we manage for our clients. Accordingly, GMO's Voting Guidelines aim to promote sustainable best practices in portfolio companies, which includes advocating for environmental protection, human rights, fair labor, and anti-discrimination practices. When evaluating and adopting these guidelines and to encourage best sustainability practices, we take into account generally accepted frameworks such as those defined by the United Nations Principles for Responsible Investment and United Nations Global Compact.

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**VII.Issuer Specific Ballot Evaluations**

GMO may review individual ballots (for example, in relation to specific corporate events such as mergers and acquisitions) using a more detailed analysis than is generally applied through the GMO Voting Guidelines. This analysis may, but does not always, result in deviation from the voting recommendation that would result from the GMO Voting Guidelines assigned to a given GMO fund or managed account. When determining whether to conduct an issuer-specific analysis, GMO will consider the potential effect of the vote on the value of the investment. To the extent that issuer-specific analysis results in a voting recommendation that deviates from a recommendation produced by the GMO Voting Guidelines, GMO will be required to vote proxies in a way that, in GMO's reasonable judgment, is in the best interest of GMO's clients.

**VIII.Potential Conflicts of Interest of the Advisor**

GMO mitigates potential conflicts of interest by generally voting in accordance with the GMO Voting Guidelines and/or specific voting guidelines provided by clients. However, from time to time, GMO may determine to vote contrary to GMO Voting Guidelines with respect to GMO funds or accounts for which GMO has voting discretion, which itself could give rise to potential conflicts of interest.

In addition, if GMO is aware that one of the following conditions exists with respect to a proxy, GMO shall consider such event a potential material conflict of interest:

1. GMO has a material business relationship or potential relationship with the issuer;

2. GMO has a material business relationship with the proponent of the proxy proposal; or

3. GMO members, employees or consultants have a personal or other material business relationship with the participants in the proxy contest, such as corporate directors or director candidates.

In the event of a potential material conflict of interest, GMO will (i) vote such proxy according to the GMO Voting Guidelines; (ii) seek instructions from the client or request that the client votes such proxy, or (iii) abstain. All such instances shall be reported to GMO's Compliance Department at least quarterly.

**IX.Ballot Materials and Processing**

The Proxy Advisory firm is responsible for coordinating with GMO's clients' custodians to seek to ensure that proxy materials received by custodians relating to a client's securities are processed in a timely fashion. Proxies relating to securities held in client accounts will typically be sent directly to the Proxy Advisory firm. In the event that proxy materials are sent to GMO directly instead of the Proxy Advisory firm, GMO will use reasonable efforts to coordinate with the Proxy Advisory firm for processing.

**X.Disclosure**

Upon request, GMO will provide clients with a copy of this Policy and how the relevant client's proxies have been voted. In relation to the latter, GMO will prepare a written response that lists, with respect to each voted proxy:

1. The name of the issuer;

2. The proposal voted upon; and

3. The election made for the proposal.

**XI.GMO Mutual Funds**

GMO's responsibility and authority to vote proxies on behalf of its clients for shares of GMO Trust, a family of registered mutual funds for which GMO serves as the investment adviser, may give rise to conflicts of interest. Accordingly, GMO will (i) vote such proxies in the best interests of its clients with respect to routine matters, including proxies relating to the election of Trustees; and (ii) with respect to matters where a conflict of interest exists between GMO and GMO Trust, such as proxies relating to a new or amended investment management contract between GMO Trust and GMO, or a re-organization of a series of GMO Trust, GMO will either (a) vote such proxies in the same proportion as the votes cast with respect to that proxy, (b) seek instructions from its clients and vote on accordance with those instructions, or (c) take such other action as GMO deems appropriate in consultation with the Trust's Chief Compliance Officer.

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On an annual basis, GMO will provide, or cause the Proxy Advisory firm to provide, to the GMO Trust administrator or other designee on a timely basis, any and all reports and information necessary to prepare and file Form N-PX, which is required by Rule 30b1-4 under the Investment Company Act of 1940.

**XII.Proxy Recordkeeping**

GMO and its Proxy Advisory firm (where applicable) will maintain records with respect to this Policy for a period of no less than five (5) years as required by SEC Rule 204-2 under the Investment Advisers Act of 1940, including the following:

1. A copy of the Policy, and any amendments thereto;

2. A copy of any document that was material to making a decision how to vote proxies, or that memorializes that decision; and

3. A record of each vote cast by GMO or the Proxy Advisory firm on behalf of GMO clients.

**XIII.Review of Policy and Procedures**

As a general principle, the Stewardship and Corporate Leadership Subcommittee, with the involvement from the Compliance Department, reviews, on an annual basis, the adequacy of this Policy to reasonably ensure it has been implemented effectively, including whether it continues to be reasonably designed to ensure that GMO's approach to voting proxies is in the best interests of its clients.

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**HOTCHKIS & WILEY**

Proxy Policy

March 2025

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**OUR MANDATE**

Our primary responsibility is to act as a fiduciary for our clients when voting proxies. We evaluate and vote each proposed proxy in a manner that encourages sustainable business practices which in turn maximizes long-term shareholder value.

There are instances such as unique client guidelines, regulatory requirements, share blocking, securities lending, or other technical limitations where we are unable to vote a particular proxy. In those instances where we do not have voting responsibility, we will generally forward our recommendation to such person our client designates.

**OUR PROCESS**

**Analyst Role**

To the extent we are asked to vote a client's proxy, our investment analysts are given the final authority on how to vote a particular proposal as these analysts' understanding of the company makes them the best person to apply our policy to a particular company's proxy ballot.

**Voting Resources**

To assist our analysts in their voting, we provide them with a report that compares the company's board of directors' recommendation against H&W's proxy policy guideline recommendation and with third-party proxy research (Institutional Shareholder Services "ISS" sustainability and climate benchmarks) and third-party ESG analysis (Morgan Stanley Capital International "MSCI").

**Engagement**

As part of our normal due diligence and monitoring of investments, we engage management, board members, or their representatives on material business issues including environmental, social, and governance ("ESG") matters. Each proxy to be voted is an opportunity to give company management and board members formal feedback on these important matters.

If our policy recommendation is contrary to management's recommendation, our analyst is expected, but not required, to engage management. If the ballot issue is a materially important issue (i.e., the issue impacts the intrinsic value of the company), the analyst is required to engage with the company. Based on the engagement and the analyst's investment judgment, the analyst will submit a vote instruction to the Managing Director of Portfolio Services via email.

**Collaboration**

We are not "activists" and we do not form "groups" as defined by the SEC. However, we do engage with other institutional shareholders on important ESG proxy matters.

**Exceptions To Policy**

Any deviation from the H&W policy recommendation requires a written statement from the analyst that summarizes their decision to deviate from policy. Typical rationales include the issue raised is not material, the proposal is moot (e.g., the company already complies with proposal), the company has a credible plan to improve, policy does not fit unique circumstances of company, analyst's assessment of the issue is in-line with intent of policy, or the proposal usurps management's role in managing the company.

Exceptions to policy are reviewed annually by the ESG Investment Oversight Group.

**Administration**

The Managing Director of Portfolio Services coordinates the solicitation of analysts' votes, the collection of exception rationales, and the implementation of those votes by our third-party proxy advisor, ISS.

**CONFLICTS OF INTEREST**

All conflicts of interest are adjudicated based on what is deemed to be in the best interest of our clients and their beneficiaries. Our Proxy Oversight Committee ("POC") is responsible for reviewing proxies voted by the firm to determine that the vote was consistent with established guidelines in situations where potential conflicts of interests may exist when voting proxies. In general, when a conflict presents itself, we will follow the recommendation of our third-party proxy advisor, ISS.

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**OVERSIGHT AND ROLES**

**ESG Investment Oversight Group**

The ESG Investment Oversight Group is responsible for overseeing all ESG investment related issues. This mandate includes oversight of proxy voting policies and procedures as they relate to investment activity including the monitoring of proxy engagements, review of proxy voting exceptions and rationales, assessment of proxy voting issues, determination of ESG proxy goals, and education of investment staff on proxy matters. The group is staffed by members of the investment team and reports to the firm's Chief Executive Officer.

**Proxy Oversight Committee**

The Proxy Oversight Committee is responsible for overseeing proxy administration and conflicts of interest issues. The committee is comprised of the Chief Operating Officer, Chief Compliance Officer, the chair of the ESG Investment Oversight Group, and Managing Director of Portfolio Services. This group oversees H&W's proxy voting policies and procedures by providing an administrative framework to facilitate and monitor the exercise of such proxy voting and to fulfill the obligations of reporting and recordkeeping under the federal securities laws. This committee manages our third-party proxy advisory relationship.

**Investment Analyst**

The investment analyst is responsible for analyzing and voting all proxies. The investment analyst has the final authority on individual proxy votes. The ESG Investment Oversight Group has final authority on creating and amending the proxy policy.

**VOTING GUIDELINES**

This section summarizes our stance on important issues that are commonly found on proxy ballots, though each vote is unique and there will be occasional exceptions to these guidelines. The purpose of our proxy guidelines is to ensure decision making is consistent with our responsibilities as a fiduciary.

These guidelines are divided into seven categories based on issues that frequently appear on proxy ballots.

&nbsp;&nbsp;&nbsp;&nbsp;• Boards and Directors

&nbsp;&nbsp;&nbsp;&nbsp;• Environmental and Social Matters

&nbsp;&nbsp;&nbsp;&nbsp;• Auditors and Related Matters

&nbsp;&nbsp;&nbsp;&nbsp;• Shareholder Rights

&nbsp;&nbsp;&nbsp;&nbsp;• Capital and Restructuring

&nbsp;&nbsp;&nbsp;&nbsp;• Executive and Board Compensation

&nbsp;&nbsp;&nbsp;&nbsp;• Routine and Miscellaneous Matters

**Boards and Directors**

*<u>Board Independence</u>*

We believe an independent board is crucial to protecting and serving the interests of public shareholders. We will generally withhold from or vote against any insiders when such insider sits on the audit, compensation, or nominating committees; or if independent directors comprise less than 50% of the board. Insiders are non- independent directors who may have inherent conflicts of interest that could prevent them from acting in the best interest of shareholders. Examples of non-independent directors include current and former company executives, persons with personal or professional relationships with the company and or its executives, and shareholders with large ownership positions.

*<u>Board Composition</u>*

We believe directors should attend meetings, be focused on the company, be responsive to shareholders, and be accountable for their decisions.

We will generally withhold from or vote against directors who attend less than 75% of meetings held during their tenure without just cause, sit on more than 5 public company boards (for CEOs only 2 outside boards), support measures that limit shareholder rights, or fail to act on shareholder proposals that passed with a majority of votes.

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*<u>Board Diversity</u>*

Boards should consider diversity when nominating new candidates, including gender, race, ethnicity, age, and professional experience. We encourage, but do not require, companies to have at least one female and one diverse (e.g., race, ethnicity) director or have a plan to do so.

*<u>Board Size</u>*

We do not see a standard number of directors that is ideal for all companies. In general, we do not want to see board sizes changed without shareholder approval as changing board size can be abused in the context of a takeover battle.

*<u>Board Tenure</u>*

In general, we will evaluate on a case-by-case basis whether the board is adequately refreshed with new talent and the proposed changes are not designed to reduce board independence.

*<u>Classified Boards</u>*

We oppose classified boards because, among other things, it can make change in control more difficult to achieve and limit shareholder rights by reducing board accountability.

*<u>Cumulative Voting</u>*

Generally, we oppose cumulative voting because we believe that economic interests and voting interests should be aligned in most circumstances.

*<u>Independent Board Chair</u>*

Generally, we favor a separate independent chair that is not filled by an insider. If the CEO is also the board chair, we require 2/3 of the board to be independent, a strong independent director (i.e., has formal input on board agendas and can call/preside over meetings of independent directors), and the CEO cannot serve on the nominating or compensation committees.

*<u>Proxy Contests</u>*

Proxy contests are unusual events that require a case-by-case assessment of the unique facts and circumstances of each contested proxy campaign. Our policy is to defer to the judgement of our analysts on what best serves our clients' interests. Our analysts will evaluate the validity of the dissident's concerns, the likelihood that the dissident plan will improve shareholder value, the qualifications of the dissident's candidates, and management's historical record of creating or destroying shareholder value.

*<u>Risk Oversight</u>*

Generally, companies should have established processes for managing material threats to their businesses, including ESG risks. We encourage transparency and vote to improve transparency to help facilitate appropriate risk oversight.

**Environmental and Social Matters**

We believe the oversight of ESG risks is an important responsibility of the board of directors and is a prerequisite for a well-managed company. Transparent disclosures are necessary to identify and evaluate environmental and social risks and opportunities. A lack of transparency will increase the likelihood that environmental and social risks are not being sufficiently managed/limited/mitigated. In general, we will engage companies with substandard disclosure to encourage them to provide adequate disclosure on E&S risks that typically align with Sustainability Accounting Standards Board ("SASB") recommendations.

In general, we support proposals that encourage disclosure of risks provided they are not overly burdensome or disclose sensitive competitive information balanced against the materiality of the risk. We also consider whether the proposal is more effectively addressed through other means, like legislation or regulation.

**Environmental Issues**

*<u>Climate Change and Green House Gas Emissions</u>*

Climate change has become an important factor in companies' long-term sustainability. Understanding a company's strategy in managing these risks and opportunities is necessary in evaluating an investment's prospects. We support disclosures related to the risks and/or opportunities a company faces related to climate change, including information on how the company identifies and manages such risks/opportunities.

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*<u>Energy Efficiency</u>*

We generally support proposals requesting that a company report on its energy efficiency policies. Exceptions may include a request that is overly burdensome or provides unrealistic deadlines.

*<u>Renewable Energy</u>*

We support requests for reports on renewable energy accomplishments and future plans. Exceptions may include duplicative, irrelevant, or otherwise unreasonable requests.

**Social Issues**

*<u>Equal Opportunity</u>*

We support proposals requesting disclosures of companies' policies and/or future initiatives related to diversity, including current data regarding the diversity of its workforce.

*<u>Gender Identity and Sexual Orientation</u>*

We support proposals to revise diversity policies to prohibit discrimination based on sexual orientation and/or gender identity.

*<u>Human Rights Proposals</u>*

We support proposals requesting disclosure related to labor and/or human rights policies.

*<u>Political Activities</u>*

We support the disclosure of a company's policies and procedures related to political contributions and lobbying activities.

*<u>Sexual Harassment</u>*

We vote on a case-by-case basis regarding proposals seeking reports on company actions related to sexual harassment. We evaluate the company's current policies, oversight, and disclosures. We also consider the company's history and any related litigation or regulatory actions related to sexual harassment, and support proposals we believe will prevent such behavior when systemic issues are suspected.

**Auditors and Related Matters**

Generally, we will support the board's recommendation of auditors provided that the auditors are independent, non-audit fees are less than the sum of all audit and tax related fees, and there are no indications of fraud or misleading audit opinions.

**Shareholder Rights**

We do not support proposals that limit shareholder rights. When a company chronically underperforms minimal expectations due to poor execution, poor strategic decisions, or poor capital allocation, there may arise the need for shareholders to effect change at the board level. Proposals that have the effect of entrenching boards or managements, thwarting the will of the majority of shareholders, or advantaging one class of shareholders at the expense of other shareholders will not be supported.

*<u>Amendment to Charter/Articles/Bylaws</u>*

We do not support proposals that give the board exclusive authority to amend the bylaws. We believe amendments to charter/articles/bylaws should be approved by a vote of the majority of shareholders.

*<u>One Share, One Vote</u>*

Generally, we do not support proposals to create dual class voting structures that give one set of shareholders super voting rights that are disproportionate from their economic interest in the company. Generally, we will support proposals to eliminate dual class structures.

*<u>Poison Pills</u>*

In general, we do not support anti-takeover measures such as poison pills. Such actions can lead to outcomes that are not in shareholders' bests interests and impede maximum shareholder returns. It can also lead to management entrenchment. We may support poison pills intended to protect NOL assets.

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*<u>Proxy Access</u>*

Generally, we support proposals that enable shareholders with an ownership level of 3% for a period of three years or more, or an ownership level of 10% and a holding period of one year or more.

*<u>Right to Act by Written Consent</u>*

We believe that shareholders should have the right to solicit votes by written consent in certain circumstances. These circumstances generally include but are not limited to situations where more than a narrow group of shareholders support the cause to avoid unnecessary resource waste, the proposal does not exclude minority shareholders to the benefit of a large/majority shareholder, and shareholders receive more than 50% support to set up action by written consent.

*<u>Special Meetings</u>*

Generally, we support proposals that enable shareholders to call a special meeting provided shareholders own at least 15% of the outstanding shares.

*<u>Virtual Meetings</u>*

We believe shareholders should have the opportunity to participate in the annual and special meetings, as current communications technology such as video conferencing is broadly available to facilitate such interactions. This improves shareholders' ability to hear directly from management and the board of the directors, and to provide feedback as needed.

**Capital and Restructuring**

Events such as takeover offers, buyouts, mergers, asset purchases and sales, corporate restructuring, recapitalizations, dilutive equity issuance, or other major corporate events are considered by our analysts on a case-by-case basis. Our policy is to vote for transactions that maximize the long-term risk adjusted return to shareholders considering management's historical record of creating shareholder value, the likelihood of success, and the risk of not supporting the proposal.

*<u>Dual Class Shares</u>*

We do not support dual class shares unless the economic and voting interests are equal.

*<u>Issuance of Common Stock</u>*

In general, we will consider the issuance of additional shares in light of the stated purpose, the magnitude of the increase, the company's historical shareholder value creation, and historical use of shares. We are less likely to support issuance when discounts or re-pricing of options has been an issue in the past.

**Executive and Board Compensation**

We expect the board of directors to design, implement, and monitor pay practices that promote pay-for-performance, alignment of interest with long-term shareholder value creation, retention and attraction of key employees. In general, we will evaluate executive compensation in light of historical value creation, peer group pay practices, and our view on management's stewardship of the company.

We expect the board of directors to maintain an independent and effective compensation committee that has members with the appropriate skills, knowledge, experience, and ability to access third-party advice.

We expect the board of directors to provide shareholders with clear and understandable compensation disclosures that enable shareholders to evaluate the effectiveness and fairness of executive pay packages.

And finally, we expect the board of directors' own compensation to be reasonable and not set at a level that undermines their independence from management.

*<u>Golden Parachutes</u>*

Golden parachutes can serve as encouragement to management to consider transactions that benefit shareholders; however, substantial payouts may present a conflict of interest where management is incentivized to support a suboptimal deal. We view cash severance greater than 3x base salary and bonus to be excessive unless approved by a majority of shareholders in a say-on-pay advisory vote.

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*<u>Incentive Options and Repricing</u>*

We generally support long-term incentive programs tied to pay-for-performance. In general, we believe 50% or more of top executive pay should be tied to long-term performance goals and that those goals should be tied to shareholder value creation metrics. We do not support plans that reset when management fails to attain goals or require more than 10% of outstanding shares to be issued. In general, we do not support the exchange or repricing of options.

*<u>Say-on-Pay</u>*

We believe annual say-on-pay votes are an effective mechanism to provide feedback to the board on executive pay and performance. We support non-binding proposals that are worded in a manner such that the actual implementation of the plan is not restricted. In general, we will vote against plans where there is a serious misalignment of CEO pay and performance or the company maintains problematic pay practices. In general, we will withhold votes from members of the compensation committee if there is no say-on-pay on the ballot, the board fails to respond to a previous say-on-pay proposal that received less than 70% support, the company has implemented problematic pay practices such as repricing options or its pay plans are egregious.

**Routine and Miscellaneous Matters**

We generally support routine board proposals such as updating bylaws (provided they are of a housekeeping nature), change of the corporate name or change of the time or location of the annual meeting.

*<u>Adjournment of Meeting</u>*

We do not support proposals that give management the authority to adjourn a special meeting absent compelling reasons to support the proposal.

*<u>Amend Quorum Requirements</u>*

We do not support proposals to reduce quorum requirements for shareholder meetings without support from a majority of the shares outstanding without compelling justification.

*<u>Other Business</u>*

We do not support proposals on matters where we have not been provided sufficient opportunity to review the matters at hand.

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**LOS ANGELES CAPITAL** 

Proxy Policy

Rev. February 20, 2025

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| | | | |
|:---|:---|:---|:---|
| **Table of Contents** | **Table of Contents** | **Table of Contents** | **Table of Contents** |
| ***I.*** |  | ***Introduction*** | ***3*** |
| ***II.*** |  | ***Proxy Policy Statement*** | ***3*** |
|  | A. | Proxy Voting Guidelines | 3 |
|  | B. | Limitations | 4 |
|  | C. | Special Considerations | 4 |
| ***III.*** |  | ***Responsibility and Oversight*** | ***5*** |
| ***IV.*** |  | ***Proxy Voting Procedures*** | ***5*** |
|  | A. | Materiality | 5 |
|  | B. | Conflicts of Interest | 5 |
|  | C. | Disclosure | 6 |
|  | D. | Recordkeeping | 6 |

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**I.Introduction**

Los Angeles Capital Management LLC ("Los Angeles Capital" or the "Firm") has adopted and implemented policies and procedures that are reasonably designed to ensure that proxies are voted in the best interest of clients, in accordance with U.S. Securities and Exchange Commission ("SEC") Rule 206(4) - 6 under the Investment Advisers Act of 1940 (the "Advisers Act") and its obligations under the Employee Retirement Income Security Act of 1974 ("ERISA"). Los Angeles Capital provides investment advisory or sub-advisory services to various types of institutional clients. When clients give Los Angeles Capital the authority to vote proxies held in their client accounts such authority is specified in the advisory contract or other governing agreements.

**II.Proxy Policy Statement**

Los Angeles Capital has retained Glass, Lewis & Co., LLC ("Glass Lewis") an unaffiliated third-party, to act as an independent proxy voting agent. Glass Lewis provides proxy analysis, voting recommendations and administration, recordkeeping, and manages other operational and reporting matters of the proxy voting process. If at any time a material conflict arises in connection with the Firm voting proxies for a client account, it would be resolved in the best interest of the client.

When Los Angeles Capital is given proxy voting authority together with a client's voting policy, the Firm oversees compliance with such policy. When the client elects to use the Firm's standard proxy guidelines, the Firm will vote in accordance with the guidelines approved by the Firm's Proxy Committee ("Committee"). The Committee has approved the use of Glass Lewis' market-based U.S. and Global guidelines<sup>1</sup>, as may be modified from time to time (the "Firm's Guidelines"). Clients with specific proxy voting goals may direct the Firm to apply a thematic set of proxy guidelines developed by Glass Lewis or provide the Firm with an alternative set of custom guidelines for use in voting proxies for the client's account.

**A.Proxy Voting Guidelines**

On an annual basis, the Committee reviews the Firm's Guidelines. Members of the Committee also selectively review a sampling of the voting recommendations and the related proxy materials in determining whether to modify the approved Firm Guidelines.

Where the Firm has proxy voting authority, the Firm ultimately retains the right to cast each vote on a case-by-case basis, taking into consideration the applicable proxy guidelines including any contractual obligations or the specific voting policy of the particular portfolio as well as all relevant facts and circumstances including information that might be gathered from sources beyond Glass Lewis. Management of issuers, as well as other interested parties, will sometimes release supplemental information to the proxy statement that relates to a pending proxy vote. Glass Lewis and the Firm will not always be able to consider such additional information depending on the timing of its release and voting deadlines.

In the event there is a disagreement with the Glass Lewis analysis as to a particular vote, the Committee will determine whether it is appropriate to vote contrary to the Glass Lewis recommendation provided that such decision is consistent with the approved guideline. In the rare circumstance that the Committee believes it is in the best interest of a client to vote contrary to an approved guideline, the Committee will seek client consent prior to placing a vote that is contrary to such approved guideline(s).

Los Angeles Capital recognizes that a client may issue specific directives regarding how particular proxy issues are to be voted for the client's portfolio holdings. The Firm requires that the advisory or sub-advisory contract specify such instructions, including instructions as to how those votes will be managed, particularly where they differ from the Firm's Guidelines.

It is unlikely that serious conflicts of interest will arise in the context of the Firm's proxy voting because the Firm does not engage in other financial businesses such as brokerage or managing public companies, underwriting, or investment banking. Nevertheless, should a conflict of interest arise in connection with proxy voting or Glass Lewis, such conflict will be handled as described below under Section IV B, "Conflicts of Interest." As a matter of policy, the Firm and its employees are required to put the interests of clients ahead of their own.

<sup>1</sup> https://www.glasslewis.com/voting-policies-current/

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**B.Limitations**

In limited circumstances, the Firm may elect to abstain from voting or may be unable to vote a client's proxy. These circumstances include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Where the Firm concludes that the effect on shareholder's economic interests or the value of the portfolio holding is indeterminable or insignificant.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Where the securities related to the vote participate in a ***securities lending program*** and are out on loan. In many cases, where a client directs the securities lending, Los Angeles Capital may not be aware when the security is out on loan and thus may not be able to recall the security before the record date, subject to the Special Considerations outlined below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Where the related securities are issued in a country that participates in ***share blocking*** because it is disruptive to the management of the portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Where multiple global custodian accounts roll up into one ***omnibus sub-custodian account***. In the specific markets where this may occur, the account managed by Los Angeles Capital is not registered individually. Therefore, if ballots are voted differently for the underlying accounts, the omnibus vote is considered split and is rejected.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Where in the Firm's judgement the ***unjustifiable costs***<sup>2</sup> or disadvantages of voting the proxy would exceed the anticipated benefit of voting (e.g., certain non-U.S. securities).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Where a required ***Power of Attorney*** is not on file or it is not feasible to get one on file.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Where a meeting involves an issuer or transaction with a relevant U.S. or non U.S. ***sanctioned entity or individual****.*

**C.Special Considerations** 

Certain accounts may warrant specialized treatment in voting proxies. Contractual stipulations, individual client direction, and special guideline arrangements will dictate how voting will be done in these cases.

**Mutual Funds**

Where the Firm votes proxies for a mutual fund that it sub-advises, unless otherwise directed and agreed with such fund and its adviser, the proxies typically will be voted in accordance with the Firm's proxy guidelines. Proxies of a mutual fund's portfolio companies may be voted in accordance with resolutions or other instructions from an authorized person of the fund.

**ERISA Accounts**

The Department of Labor ("DOL") rules emphasize that a fiduciary's duties extend to management of shareholder rights including with respect to proxy voting. Responsibilities for voting ERISA accounts include: the duty of loyalty, prudence, compliance with the plan, as well as a duty to avoid prohibited transactions. The DOL rules require voting with a focus on relevant risk-return factors and not voting in a manner that sacrifices investment returns or takes on risks that promote benefits or goals unrelated to the interests of participants and beneficiaries. Where the Firm has authority to vote proxies for an ERISA account, the Firm employs the Firm's Guidelines unless otherwise specifically directed by the ERISA plan fiduciary. Where the Firm has authority to vote proxies for a commingled fund that is an ERISA plan asset fund, the Firm employs the Firm's Guidelines.

**Securities Lending Program**

Certain situations where Los Angeles Capital may recall securities on loan to vote proxies, if operationally feasible, include: (i) where Los Angeles Capital deems a holding materially significant, (ii) where Los Angeles Capital is directing the securities lending, or (iii) where a client has made arrangements with its custodian to permit standing instructions for the recall of securities out on loan and Los Angeles Capital has agreed to implement the standing instructions.

<sup>2</sup> The Department of Labor has indicated that such costs include, but are not limited to, expenditures related to developing proxy resolutions, proxy voting services and the analysis of the likely net effect of a particular issue on the economic value of the plan's investment. Fiduciaries must take into consideration whether the exercise of its rights to vote a proxy is expected to have an effect on the economic value of the plan's investment that will outweigh the costs of exercising such rights. With respect to proxies for shares of foreign corporations, a fiduciary, in deciding whether to purchase shares of a foreign corporation, should consider whether any additional difficulty and expense in voting such shares is reflected in their market price.

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**III.Responsibility and Oversight** 

The Committee was established to provide oversight to the proxy voting process and is responsible for developing, implementing, and updating the Firm's proxy policy, reviewing approving, and/or formulating the Firm's Guidelines, selecting and overseeing the third-party proxy vendor, identifying any conflicts of interest, determining the votes for issues it elects to vote independently from, or that cannot be voted by, Glass Lewis, monitoring legislative and corporate governance developments surrounding proxy issues, and meeting to discuss any material issues regarding the proxy voting process. The Committee meets annually and as necessary to fulfill its obligations.

As part of the Committee's ongoing oversight of its third-party proxy vendor, the Committee considers (i) the adequacy and quality of the proxy vendor's staffing and personnel; (ii) the presence of conflicts and processes to address those conflicts; (iii) the robustness of the proxy vendor's policies and procedures for ensuring that its recommendations are based on current and accurate information; and (iv) any other appropriate considerations as to the nature and quality of the proxy vendor's services. In addition, Compliance conducts periodic reviews of ballots voted by the proxy vendor to ensure they are in line with proxy voting procedures.

In cases where the Committee votes a proxy ballot it may conduct research internally and/or use the resources of an independent research consultant or use information from any of the following sources: legislative materials, studies of corporate governance and other proxy voting issues, reports by issuers' management on pending proxy votes, and/or published analyses of shareholder and management proposals. In such voting circumstances, two votes from voting members of the Committee or one voting member of the Committee and an internal legal counsel are required.

Los Angeles Capital's Operations Department handles the day-to-day administration of the proxy voting process.

**IV.Proxy Voting Procedures** 

Glass Lewis provides for the timely execution of specified proxy votes on the Firm's behalf, which includes complete account set-up, vote execution, reporting, recordkeeping, and compliance with ERISA.

Los Angeles Capital's responsibility for voting proxies is generally determined by the obligations set forth under each client's Investment Management Agreement, Limited Partnership Agreement, Prospectus, Trust Agreement or other legal documentation governing the account. Voting ERISA client proxies is a fiduciary act of plan asset management that must be performed by the adviser or delegated to a sub-adviser unless the voting right is retained by a named fiduciary of the plan. If an advisory or sub-advisory contract or similar document states that Los Angeles Capital does not have the authority to vote client proxies, then voting is the responsibility of some other named fiduciary.

While Los Angeles Capital will accept direction from clients on specific proxy issues for their account, the Firm reserves the right to maintain its standard position on all other client accounts for which the Firm has proxy voting authority.

**A.Materiality**

The Committee has designated certain materiality thresholds for situations in which the Committee may vote independently from Glass Lewis or may take separate actions in regard to securities lending limitations. Materiality thresholds are monitored daily and are escalated to the Committee for review.

**B.Conflicts of Interest**

Los Angeles Capital attempts to minimize the risks of conflicts and reviews the Conflict of Interest Statement prepared by Glass Lewis on an annual basis.

If Glass Lewis identifies a potential conflict of interest between it and a publicly held company, it will disclose the relationship on the relevant proxy paper research report. In these situations, members of the Committee will review the proxy paper research report and vote the proxy in accordance with the Committee charter.

If an unforeseen conflict requires specialized treatment, alternate measures may be taken, up to and including having Glass Lewis refrain from writing a proxy paper research report and abstaining from making a voting recommendation on the company. In this scenario Glass Lewis would procure a substitute research report from an alternative qualified provider, and the Committee may be required to research and vote the proxy.

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If the Committee identifies a potential material conflict of interest between Los Angeles Capital or an affiliated person of the Firm and the issuer whose ballot is being voted, the client whose account holds the shares of such issuer will be notified. If no directive on how to vote is issued by the client, the Committee will vote in such a way that, in the Committee's opinion, fairly addresses the conflict in the best interest of the client.

**C.Disclosure** 

Los Angeles Capital will provide clients with a copy of the Firm's current proxy policies and procedures upon request. In addition, clients may request, at any time, a copy of the Firm's voting records for their respective account(s) by making a formal request to Los Angeles Capital. Los Angeles Capital will make this information available to a client upon its request within a reasonable time. For further information, please contact a member of Operations at operations@lacapm.com.

Los Angeles Capital generally will not disclose how it has voted or intends to vote on behalf of a client account except as required by applicable law but may disclose such information to a client regarding their portfolio who itself may decide or may be required to make public such voting information. Los Angeles Capital will not disclose past votes or share amounts voted except: (i) for a valid business purpose as determined in the discretion of the Chief Compliance Officer or Chief Legal Officer, (ii) to the respective client for such client's account, (iii) as required on Form N-PX related to Say-on-Pay votes, or (iv) as otherwise required by law.

**D.Recordkeeping**

**ERISA Accounts**

Los Angeles Capital's maintains access to proxy voting records (both procedures and actions taken in individual situations) to enable the named fiduciary to determine whether Los Angeles Capital is fulfilling its obligations. Such records may be maintained via Glass Lewis' electronic system. Retention may include: (1) issuer name and meeting; (2) issues voted on and record of the vote; (3) number of shares eligible to be voted on the record date; (4) number of shares voted; and (5) where appropriate, cost-benefit analyses.

**Duration**

Proxy voting books and records will be maintained in an easily accessible place for at least five years from the end of the fiscal year during which the last entry was made on such records. For the first two years, the records are fully accessible in Los Angeles Capital's office and electronically.

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**Nuveen** 

Proxy Voting Policy

Policy Adoption Date: February 3, 2020

Effective Date of Current Policy/Last Date Reviewed: July 29, 2024

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**Policy Purpose and Statement**

Proxy voting is the primary means by which shareholders may influence a publicly traded company's governance and operations and thus create the potential for value and positive long-term investment performance. When an SEC registered investment adviser has proxy voting authority, the adviser has a fiduciary duty to vote proxies in the best interests of its clients and must not subrogate its clients' interests to its own. In their capacity as fiduciaries and investment advisers, Nuveen Asset Management, LLC ("NAM"), Teachers Advisors, LLC ("TAL") and TIAA-CREF Investment Management, LLC ("TCIM"), (each an "Adviser" and, collectively, the "Advisers"), vote proxies for the Portfolio Companies held by their respective clients, including investment companies and other pooled investment vehicles, institutional and retail separate accounts, and other clients as applicable. The Advisers have adopted this Policy, the Nuveen Proxy Voting Guidelines, and the Nuveen Proxy Voting Conflicts of Interest Policy for voting the proxies of the Portfolio Companies they manage. The Advisers leverage the expertise and services of an internal group referred to as Nuveen's Stewardship Group to administer the Advisers' proxy voting. The Stewardship Group adheres to the Advisers' Proxy Voting Guidelines which are reasonably designed to ensure that the Advisers vote client securities in the best interests of the Advisers' clients.

Applicability

This Policy applies to employees of Nuveen acting on behalf of Nuveen Asset Management, LLC, ("NAM"),Teachers Advisors, LLC, ("TAL") and TIAA-CREF Investment Management, LLC ("TCIM"), each an "Adviser" and collectively referred to as the "Advisers"

**Policy Statement**

Proxy voting is a key component of a Portfolio Company's corporate governance program and is the primary method for exercising shareholder rights and influencing the Portfolio Company's behavior. Nuveen makes informed voting decisions in compliance with Rule 206(4)-6 (the "Rule") of the Investment Advisers Act of 1940, as amended (the "Advisers Act"), and applicable laws and regulations, (e.g., the Employee Retirement Income Security Act of 1974, "ERISA").

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**Enforcement**

As provided in the TIAA Code of Business Conduct, all employees are expected to comply with applicable laws and regulations, as well as the relevant policies, procedures and compliance manuals that apply to Nuveen's business activities. Violation of this Policy may result in disciplinary action up to and including termination of employment.

**Terms and Definitions**

***Advisory Personnel*** includes the Adviser's portfolio managers and research analysts.

***Proxy Voting Guidelines*** (the ''Guidelines'') are a set of pre-determined principles setting forth the manner in which the Advisers intend to vote on specific voting categories, and serve to assist clients, Portfolio Companies, and other interested parties in understanding how the Advisers intend to vote on proxy-related matters. The Guidelines are not exhaustive and do not necessarily dictate how the Advisers will ultimately vote with respect to any proposal or resolution. While the Guidelines are developed, maintained, and implemented by the Stewardship Group, and reviewed by the Nuveen Proxy Voting Committee, the portfolio managers of the Advisers maintain the ultimate decision-making authority with respect to how proxies will be voted.

***Portfolio Company*** includes any publicly traded operating company held in an account that is managed by an Adviser. For the avoidance of doubt, Portfolio Company excludes investment companies.

**Policy Requirements**

Investment advisers, in accordance with the Rule, are required to (i) adopt and implement written policies and procedures that are reasonably designed to ensure that proxies are voted in the best interest of clients, and address resolution of material conflicts that may arise, (ii) describe their proxy voting procedures to their clients and provide copies on request, and (iii) disclose to clients how they may obtain information on how the Advisers voted their proxies.

The Nuveen Proxy Voting Committee (the "Committee"), the Advisers, the Stewardship Group and Nuveen Compliance are subject to the respective requirements outlined below under Roles and Responsibilities.

Although it is the general policy to vote all applicable proxies received in a timely fashion with respect to securities selected by an Adviser for current clients, the Adviser may refrain from voting in certain circumstances where such voting would be disadvantageous, materially burdensome or impractical, or otherwise inconsistent with the overall best interest of clients.

**Roles and Responsibilities**

**Nuveen Proxy Voting Committee**

The purpose of the Committee is to establish a governance framework to oversee the proxy voting activities of the Advisers in accordance with the Policy. The Committee's voting members will be comprised from Research, the Advisers, and the Stewardship Group. Non-voting members will be comprised from Nuveen Legal, Nuveen Compliance, Nuveen Advisory Product, and Nuveen Investment Risk. The Committee may invite others on a standing, routine and/or an ad hoc basis to attend Committee meetings. The CCOs of CREF/TC Funds and the Nuveen Funds shall be standing, non- voting invitees. The Committee has delegated responsibility for the implementation and ongoing administration of the Policy to the Stewardship Group, subject to the Committee's ultimate oversight and responsibility as outlined in the Committee's Proxy Voting Charter.

**Advisers**

1. Advisory Personnel maintain the ultimate decision-making authority with respect to how proxies will be voted, unless otherwise instructed by a client, and may determine to vote contrary to the Guidelines and/or a vote recommendation of the Stewardship Group if such Advisory Personnel determines it is in the best interest of the Adviser's clients to do so. The rationale for all such contrary vote determinations will be documented and maintained.

2. When voting proxies for different groups of client accounts, Advisory Personnel may vote proxies held by the respective client accounts differently depending on the facts and circumstances specific to such client accounts. The rationale for all such vote determinations will be documented and maintained.

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3. Advisory Personnel must comply with the Nuveen Proxy Voting Conflicts of Interest Policy with respect to potential material conflicts of interest.

**Nuveen Stewardship Group**

1. Performs day-to-day administration of the Advisers' proxy voting processes.

2. Seeks to vote proxies in adherence to the Guidelines, which have been constructed in a manner intended to align with the best interests of clients. In applying the Guidelines, the Stewardship Group, on behalf of the Advisers, takes into account several factors, including, but not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Input from Advisory Personnel

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Third party research

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Specific Portfolio Company context, including environmental, social and governance practices, and financial performance.

3. Assists in the development of securities lending recall protocols in cooperation with the Securities Lending Committee.

4. Performs Form N-PX filings in accordance with regulatory requirements.

5. Delivers copies of the Advisers' Policy to clients and prospective clients upon request in a timely manner, as appropriate.

6. Assists with the disclosure of proxy votes as applicable on corporate websites and elsewhere as required by applicable regulations.

7. Prepares reports of proxies voted on behalf of the Advisers' investment company clients to their Boards or committees thereof, as applicable.

8. Performs an annual vote reconciliation for review by the Committee.

9. Arranges the annual service provider due diligence, including a review of the service provider's potential conflicts of interests, and presents the results to the Committee.

10. Facilitates quarterly Committee meetings, including agenda and meeting minute preparation.

11. Complies with the Nuveen Proxy Voting Conflicts of Interest Policy with respect to potential material conflicts of interest.

12. Creates and retains certain records in accordance with Nuveen's Record Management program.

13. Oversees the proxy voting service provider with respect to its responsibilities, including making and retaining certain records as required under applicable regulation.

**Nuveen Compliance**

1. Seeks to ensure proper disclosure of Advisers' Policy to clients as required by regulation or otherwise.

2. Seeks to ensure proper disclosure to clients of how they may obtain information on how the Advisers voted their proxies.

3. Assists the Stewardship Group with arranging the annual service provider due diligence and presenting the results to the Committee.

4. Monitors for compliance with this Policy and retains records relating to its monitoring activities pursuant to Nuveen's Records Management program.

**Nuveen Legal**

1. Provides legal guidance as requested.

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**Governance**

**Review and Approval**

This Policy will be reviewed at least annually and will be updated sooner if substantive changes are necessary. The Policy Owner, the Committee and the NEFI Compliance Committee are responsible for the review and approval of this Policy.

**Implementation**

Nuveen has established the Committee to provide centralized management and oversight of the proxy voting process administered by the Stewardship Group for the Advisers in accordance with its Proxy Voting Committee Charter and this Policy.

**Exceptions**

Any request for a proposed exception or variation to this Policy will be submitted to the Committee for approval and reported to the appropriate governance committee(s), where appropriate.

**Related Documents**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Nuveen Proxy Voting Committee Charter

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Nuveen Proxy Voting Guidelines

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Nuveen Proxy Voting Conflicts of Interest Policy and Procedures

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Nuveen Policy Statement on Responsible Investing

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|:---|:---|
| &nbsp;&nbsp;&nbsp;&nbsp;Governance | &nbsp;&nbsp;&nbsp;&nbsp;NEFI Compliance Committee |
| &nbsp;&nbsp;&nbsp;&nbsp;Policy Owner | &nbsp;&nbsp;&nbsp;&nbsp;Nuveen Proxy Voting Committee |
| &nbsp;&nbsp;&nbsp;&nbsp;Policy Leader | &nbsp;&nbsp;&nbsp;&nbsp;Nuveen Compliance |

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**PineBridge Investments**

Proxy Voting Policies and Procedures

2024

The information contained herein is the property of PineBridge Investments and may not be copied, used, or disclosed, in whole or in part, stored in a retrieval system, or transmitted in any form or by any means (electronic, mechanical, reprographic, recording, or otherwise) without the prior written permission of PineBridge Investments.

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**I.Introduction**

Proxy voting is an important right of shareholders, such as PineBridge Clients, for which PineBridge must take reasonable care and diligence to ensure such rights are properly and timely exercised. PineBridge, as a fiduciary for its Clients, must vote proxies in each Client's best interest.

**II.Policy Statement**

**Proxy Procedures**

As a registered investment adviser that votes (or delegates the voting of) securities held in Client portfolios, PineBridge has implemented proxy voting procedures that are reasonably designed to help ensure that a) PineBridge votes proxies in the best interest of its Clients; b) describes its proxy voting procedures to its Clients, and c) discloses to Clients how they may obtain information on how PineBridge voted their proxies. These procedures are designed to help enable PineBridge to manage material conflicts of interest. While PineBridge must disclose its votes upon request to Clients, no public disclosure is required. (Note that disclosure is required for any mutual funds advised by PineBridge, on Form N-PX.)

**Record-Keeping**

PineBridge must retain (i) these proxy voting policies and procedures; (ii) proxy statements received regarding Client securities; (iii) records of votes it casts on behalf of Clients; (iv) records of Client requests for proxy voting information, and; (v) any documents prepared by PineBridge that were material to making a decision how to vote, or that memorialized the basis for the decision. PineBridge may rely on proxy statements filed on EDGAR instead of keeping its own copies and rely on proxy statements and records of proxy votes cast by PineBridge that are maintained by contract with a third-party proxy voting service or other third party.

**Proxies of Shares of Non-U.S. Corporations**

PineBridge has implemented general voting policies with respect to non-U.S. shares owned by Clients. However, although U.S. companies must give shareholders at least 20 days' advance notice to vote proxies, some non-U.S. companies may provide considerably shorter notice or none at all. PineBridge is not required to "rush" voting decisions in order to meet an impractical deadline, and as a result, PineBridge or PineBridge affiliates' regional designees under certain circumstances may not vote certain proxies. In addition, certain non-U.S. regulations impose additional costs to a Portfolio that votes proxies, and PineBridge will take that into consideration when determining whether or not to vote.

**Policy on Monitoring Class Action Suits**

In the event that PineBridge has purchased the same security for a Client's portfolio alongside its investments on behalf of itself or an affiliate, PineBridge generally will seek to inform a Client that such Client may also have a cause of action whenever such issuer is subject to class action litigation. PineBridge as a general matter will also make available to the Client such rights, if any, as that PineBridge may have against any such issuer in its capacity as the Client's agent, and PineBridge will, where possible, give the Client such assistance as it may reasonably require to exercise its rights in any such action.

PineBridge generally does not, however, search out potential legal claims or monitor class action lawsuits against issuers arising from investments held in a Client portfolio, nor may PineBridge institute a lawsuit on a Client's behalf arising from investments held in the Client portfolio.

In addition, given the size and breadth of PineBridge's business, it is possible that there may be situations in which PineBridge or an affiliate might become aware of a potential lawsuit with respect to a security, one of which may also be held within a Client portfolio. In these situations, there is the possibility, due to confidentiality requirements or conflicts of interest, that PineBridge would be restricted from informing a Client of potential legal actions and activities.

In the case of a material conflict between the interests of PineBridge and those of its Clients, PineBridge will take steps to address such conflicts (which may include consulting with counsel), and will attempt to resolve all conflicts in the Client's best interest.

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**III.Procedures**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compliance is responsible for ensuring that the PineBridge ADV includes the appropriate language summarizing PineBridge's proxy voting procedures and for updating the summary in the ADV whenever the procedures are updated. Compliance is also responsible for consulting with Legal to ensure that PineBridge's proxy voting policy is kept up to date and in a form appropriate for transmission to Clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If a Client or potential Client requests a copy of the Proxy Voting Policy from Client Relations or Sales, Compliance should be contacted for the most recent version, or it may be obtained from the intranet. Client Relations will send to such Client a copy of the current version of the voting procedures within 7 days and will ensure that Compliance receives a log of each Client's request and the action taken.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If a Client requests access to the records of how PineBridge voted its proxies, the Client should be assured that this will be provided, and Operations should be consulted. Operations has access to these proxy voting records.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• PineBridge has established a Stewardship Committee (the "Committee"), which is responsible for defining and monitoring PineBridge's proxy voting strategy and process. The Committee is comprised of members of senior management, portfolio management, Compliance, Legal, Product and Operations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Committee conducts an annual review of the proxy voting guidelines for domestic and non-U.S. Portfolios. Guidelines are reviewed to ensure that the interests of PineBridge's Clients are best served.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Issues not addressed in the voting guidelines are determined on a case-by-case basis with input from the Committee and portfolio managers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• PineBridge has engaged a third-party vendor to administer proxy voting on its behalf. The vendor receives, in a majority of cases, proxies directly from the Client's custodian and votes them based on PineBridge' s voting guidelines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In circumstances where PineBridge receives proxies directly, these proxies must be sent to the vendor promptly. The vendor then votes them in accordance with PineBridge's voting guidelines. The vendor maintains a listing of all votes cast on behalf of PineBridge Clients.

**IV.Associated Policies**

Advisory Agreements Policy

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**Polen Capital Credit, LLC** 

Proxy Voting Policies and Procedures

Updated May 3, 2022

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**Overview**

In accordance with the fiduciary duties owed to our clients and Rule 206(4)-6 promulgated by the Securities and Exchange Commission (the "SEC") under the Investment Advisers Act of 1940 (the "Advisers Act"), Polen Capital Credit, LLC ("Polen Credit") has adopted and implemented these Proxy Voting Policies and Procedures (the "Policies") that we believe are reasonably designed to ensure that proxies are voted in the best interests of our clients that have delegated proxy voting authority to us.

**Proxy Voting Guidelines and Procedures**

Given the credit-oriented focus of Polen Credit's investment strategies, Polen Credit primarily manages investments in high yield fixed income, rather than equity securities. As a result, equity investments, in particular in public companies that regularly disseminate proxy voting materials to their shareholders, typically constitute a very small percentage of the total assets managed by Polen Credit. Proxy voting in publicly-traded equities therefore is typically not a material element of Polen Credit's significant investment strategies.

When a client grants Polen Credit proxy voting authority, we will vote such proxies in the best interests and for the benefit of such client in accordance with our fiduciary duty and all applicable laws and regulations. We believe that this approach means voting in accordance with our judgment as to what voting decision is most likely to maximize total return to the client as an investor in the company whose securities are being voted, including, where applicable, returns to the client on positions held in non-voting securities of that issuer or securities of other issuers that may be materially affected by the outcome of the vote. Normally, voting decisions are made by the research analyst (or portfolio manager) responsible at the time of the vote for monitoring the corporate events of the particular issuer of the securities to be voted. Polen Credit believes that it is not appropriate, in most cases, to vote proxies with respect to the securities of such issuers in accordance with fixed, pre-determined guidelines. Accordingly, Polen Credit generally reviews and makes a voting decision on each matter presented in such proxy on an individual, case-by- case basis.

These Policies are intended to support good corporate governance, including those corporate practices that address environmental and social issues, in all cases with the objective of protecting shareholder interests and maximizing shareholder value. Accordingly, to the extent that Polen Credit identifies a material ESG (environmental, social, or governance) issue with respect to a particular company, it factors such information into its decision-making process with respect to proxy voting and exercises discretion that it deems appropriate and in the best interests of its clients in a manner consistent with the firm's Responsible Investment Policy.

Polen Credit utilizes a third party service provider, Institutional Shareholder Services ("ISS") for research and recommendations with respect to certain proxy issues, and for facilitating the processing of Polen Credit's selections for each proxy vote. In voting proxies pursuant to these Policies, Polen Credit may consult ISS's Sustainability Voting Guidelines, but in all instances, we will make an independent decision for each vote on a case-by-case basis. Additional information about ISS and the ISS Sustainability Voting Guidelines is available at http://www.issgovernance.com/policy.

The Polen Credit operations department has designated an internal proxy administrator, who is responsible for coordinating the review and voting of client proxies, including, without limitation, circulating the proxy with respect to the applicable research analyst (or portfolio manager) responsible for the voting the proxy and subsequently submitting any applicable proxy vote on behalf of Polen Credit clients within the ISS platform prior to any applicable deadlines.<sup>1</sup>

<sup>1</sup> Notwithstanding the foregoing, from time to time, Polen Credit clients may hold private equity positions (typically, in connection with the restructuring of a prior fixed income position). To the extent applicable, these Policies also set forth Polen Credit's approach with respect to any shareholder voting of private equity holdings in such client accounts. However, a member of the investment team (typically, the Associate General Counsel) will assume responsibility for reviewing and processing such votes on behalf of Polen Credit's clients.

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In certain circumstances, Polen Credit may elect to not vote a proxy with respect to securities held in client accounts, including, but not limited to, situations where (a) the securities are no longer held in a client's account; (b) the proxy or related materials are not received in sufficient time to allow Polen Credit to analyze the material or cast an informed vote by the voting deadline; or (c) Polen Credit concludes that the costs of voting a proxy outweigh any potential benefits to its clients. In addition, Polen Credit may seek voting instructions from some or all of the clients holding the securities to be voted, and, as a result, client instructions may cause Polen Credit to vote differently for different clients on the same matter.

**Material Conflicts of Interest**

If the research analyst (or portfolio manager) responsible for recommending a proxy vote identifies a material conflict of interest between our interests and the interest of our clients, such individual (and/or the internal proxy administrator) will notify the firm's general counsel & chief compliance officer. If the general counsel & chief compliance officer agrees that a material conflict of interest exists, Polen Credit generally will request a waiver of the conflict of interest or otherwise seek to obtain voting instructions from the affected client(s), or an authorized representative of the client(s) (or, in limited circumstances, an appropriate independent third party). In the event that the client(s), client representative(s), or other third party, as the case may be, do not desire to direct the vote of the proxy matter in question, Polen Credit may, as circumstances warrant, take other steps, such as consulting with its outside legal counsel or an independent third party service, which steps are designed to result in a decision that is demonstrably based on the clients' best interests and not the product of the conflict. If a material conflict cannot be resolved as described above, Polen Credit will not vote the proxy on behalf of such client(s).

**Maintenance of Proxy Voting Records**

As required by Rule 204-2 under the Advisers Act, Polen Credit maintains records of proxies that it has voted on behalf of its clients. These records include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a copy of Polen Credit's internal policies and procedures with respect to proxy voting, as updated from time to time;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• copies of proxy statements received regarding securities held in client accounts, unless the materials are available electronically through the SEC's EDGAR system;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• a record of each vote cast on behalf of our clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• each written client request for proxy voting records and Polen Credit's written response to any (written or oral) client request for such records.

Polen Credit will maintain these proxy voting books and records for a period of not less than five years.

**Disclosure**

Polen Credit will provide each client with either a copy of these Policies or a summary thereof. In addition, upon the request of any client, Polen Credit will provide each client with information with respect to how Polen Credit voted any proxies on behalf of such client.

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**Post Advisory Group**

Proxy and Corporate Action Voting Policy

Dated March 2020

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**Policy**

When voting proxies or acting on corporate actions for clients, Post will decide based on the best interests of its clients. Post shall act in a prudent and diligent manner and make voting decisions Post believes enhance the value of the assets of client accounts. With respect to ERISA accounts, plan beneficiaries and participants, voting will be in accordance with ERISA and the U.S. Department of Labor ("DOL") guidance thereunder. Unless a client specifically reserves the right to vote its own proxies or to take shareholder action in other corporate actions, Post will vote proxies or act on other actions received in sufficient time prior to their deadlines as part of its discretionary authority over the assets. Corporate actions may include, for example and without limitation, tender offers or exchanges, bankruptcy proceedings, and class actions.

**Background**

Post Advisory Group, LLC ("Post") acts as discretionary investment adviser for various clients, including clients governed by the Employee Retirement Income Security Act of 1974 ("ERISA") and registered open-ended investment companies ("mutual funds"). While Post primarily manages fixed income securities, it does occasionally hold a limited amount of voting securities or securities for which shareholder action is solicited in a client account.

**Responsibility**

The Chief Compliance Officer (CCO) is responsible for establishing this policy, ensuring that this policy is consistent with applicable federal securities laws and regulations, updating this policy based on changes to federal securities laws and regulations and providing effective disclosure of this policy as applicable. Additionally, the Compliance Department (Compliance) is responsible for evaluating this policy no less frequently than annually. Compliance is also responsible for restricting securities with pending corporate actions in Charles River.

Post's Operations Department is responsible for voting proxies in a timely manner and consistently across portfolios as well as handling clients' corporate actions.

**Proxy Voting Procedures**

Operations will consider each proxy issue individually and vote in a manner which Post believes enhances the value of client accounts overall. Where a proxy proposal raises a material conflict of interest between Post's interests and the client's, Post will disclose the conflict to the relevant clients and obtain their consent to the proposed vote prior to voting the securities. When a client does not respond to such a conflict disclosure request or denies the request, Post will abstain from voting the securities held by that client's account.

**Corporate Actions Procedures**

The following procedures are following in addressing corporate actions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operations will receive notifications of corporate actions from State Street.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operations will request and receive instructions from the relevant PM or Analyst covering the security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Operations will vote consistent with the instructions in State Street's CApTAIN system and send confirmatory documentation back to the relevant PM or Analyst.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• For mandatory calls, Operations will add the positions to the cash sheet and Compliance will add those securities to a restricted list in Charles River.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• State Street will automatically execute exchanges due to standing instructions from Post.

**Record Retention**

All records associated with this policy that require retention shall be maintained according to the record retention obligations enumerated in the attached Recordkeeping Policy.

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**SPECTRUM ASSET MANAGEMENT, INC.** 

Policy on Proxy Voting

For Investment Advisory Clients

2024

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**GENERAL POLICY** 

Spectrum, an investment adviser registered with the Securities and Exchange Commission, acts as investment advisor for various types of client accounts (e.g. employee benefit plans, governmental plans, mutual funds, insurance company separate accounts, corporate pension plans, endowments and foundations). While Spectrum receives few proxies for the preferred shares it manages, Spectrum nonetheless will, when delegated the authority by a client, vote these shares per the following policy voting standards and processes:

**<u>STANDARDS:</u>** 

Spectrum's standards aim to ensure the following in keeping with the best interests of its clients:

&nbsp;&nbsp;&nbsp;&nbsp;• That Spectrum act solely in the interest of its clients in providing for ultimate long-term stockholder value.

&nbsp;&nbsp;&nbsp;&nbsp;• That Spectrum act without undue influence from individuals or groups who may have an economic interest in the outcome of a proxy vote.

&nbsp;&nbsp;&nbsp;&nbsp;• That the custodian bank is aware of our fiduciary duty to vote proxies on behalf of others – Spectrum relies on the best efforts of the custodian bank to deliver all proxies we are entitled to vote.

&nbsp;&nbsp;&nbsp;&nbsp;• That Spectrum will exercise its right to vote all proxies on behalf of its clients (or permit clients to vote their interest, as the case(s) may be).

&nbsp;&nbsp;&nbsp;&nbsp;• That Spectrum will implement a reasonable and sound basis to vote proxies.

**<u>PROCESSES:</u>** 

A.Following ISS' Recommendations

Spectrum has selected Institutional Shareholder Services (ISS) to assist it with its proxy voting responsibilities. Spectrum follows ISS Standard Proxy Voting guidelines (the "Guidelines"). The Guidelines embody the positions and factors Spectrum generally considers important in casting proxy votes. They address a wide variety of individual topics, including, among other matters, shareholder voting rights, anti-takeover defenses, board structures, the election of directors, executive and director compensation, reorganizations, mergers, and various shareholder proposals. Recognizing the complexity and fact-specific nature of many corporate governance issues, the Guidelines often do not direct a particular voting outcome, but instead identify factors ISS considers in determining how the vote should be cast.

In connection with each proxy vote, ISS prepares a written analysis and recommendation (an "ISS Recommendation") that reflects ISS's application of Guidelines to the particular proxy issues. Where the Guidelines do not direct a particular response and instead list relevant factors, the ISS Recommendation will reflect ISS's own evaluation of the factors. Spectrum may on any particular proxy vote decide to diverge from the Guidelines or an ISS Recommendation. In such cases, our procedures require: (i) the requesting Portfolio Manager to set forth the reasons for their decision; (ii) the approval of the Chief Investment Officer; (iii) notification to the Compliance Department and other appropriate Principal Global Investors personnel; (iv) a determination that the decision is not influenced by any conflict of interest; and (v) the creation of a written record reflecting the process.

Spectrum generally votes proxies in accordance with ISS' recommendations. When Spectrum follows ISS' recommendations, it need not follow the conflict of interest procedures in Section B, below.

From time to time ISS may have a business relationship or affiliation with one or more issuers held in Spectrum client accounts, while also providing voting recommendations on these issuers' securities. Because this practice may present a conflict of interest for ISS, Spectrum's Chief Compliance Officer will require from ISS at least annually additional information, or a certification that ISS has adopted policies and procedures to detect and mitigate such conflicts of interest in issuing voting recommendations. Spectrum may obtain voting recommendations from two proxy voting services as an additional check on the independence of the ISS' voting recommendations.

B.Disregarding ISS' Recommendations

Should Spectrum determine not to follow ISS' recommendation for a particular proxy, Spectrum will use the following procedures for identifying and resolving a material conflict of interest and will use the Proxy Voting Guidelines (below) in determining how to vote. The Report for Proxy Vote(s) against ISS Recommendation(s), Exhibit A hereto, shall be completed in each such instance.

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Spectrum will classify proxy vote issues into three broad categories: Routine Administrative Items, Special Interest Issues, and Issues Having the Potential for Significant Economic Impact. Once the Senior Portfolio Manager has analyzed and identified each issue as belonging in a particular category and disclosed the conflict of interests to affected clients and obtained their consents prior to voting, Spectrum will cast the client's vote(s) in accordance with the philosophy and decision guidelines developed for that category. New and unfamiliar issues are constantly appearing in the proxy voting process. As new issues arise, we will make every effort to classify them among the three categories below. If we believe it would be informative to do so, we may revise this document to reflect how we evaluate such issues.

Due to timing delays, logistical hurdles and high costs associated with procuring and voting international proxies, Spectrum has elected to approach international proxy voting on the basis of achieving "best efforts at a reasonable cost."

As a fiduciary, Spectrum owes its clients an undivided duty of loyalty. We strive to avoid even the appearance of a conflict that may compromise the trust our clients have placed in it. This is true with respect to proxy voting and thus Spectrum has adopted the following procedures for addressing potential or actual conflicts of interest.

<u>Identifying a Conflict of Interest</u>. There may be a material conflict of interest when Spectrum votes a proxy solicited by an issuer whose retirement plan or fund we manage or with whom Spectrum, an affiliate, or an officer or director of Spectrum or of an affiliate has any other material business or personal relationship that may affect how we vote the issuer's proxy. To avoid any perceived material conflict of interest, the following procedures have been established for use when Spectrum encounters a potential material conflict to ensure that voting decisions are based on a clients' best interest and are not the product of a material conflict.

<u>Monitoring for Conflicts of Interest</u>. All employees of Spectrum are responsible for monitoring for conflicts of interest and referring any that may be material to the CCO for resolution. At least annually, the CCO will take reasonable steps to evaluate the nature of Spectrum's material business relationships (and those of its affiliates) with any company whose preferred securities are held in client accounts (a "portfolio company") to assess which, if any, could give rise to a conflict of interest. CCO's review will focus on the following three categories:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Business Relationships – The CCO will consider whether Spectrum (or an affiliate) has a substantial business relationship with a portfolio company or a proponent of a proxy proposal relating to the portfolio company (e.g., an employee group), such that failure to vote in favor of management (or the proponent) could harm the adviser's relationship with the company (or proponent). For example, if Spectrum manages money for the portfolio company or an employee group, manages pension assets, leases office space from the company, or provides other material services to the portfolio company, the CCO will review whether such relationships may give rise to a conflict of interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Personal Relationships – The CCO will consider whether any senior executives or portfolio managers (or similar persons at Spectrum's affiliates) have a personal relationship with other proponents of proxy proposals, participants in proxy contests, corporate directors, or candidates for directorships that might give rise to a conflict of interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Familial Relationships – The CCO will consider whether any senior executives or portfolio managers (or similar persons at Spectrum's affiliates) have a familial relationship relating to a portfolio company (e.g., a spouse or other relative who serves as a director of a portfolio company, is a candidate for such a position, or is employed by a portfolio company in a senior position).

In monitoring for conflicts of interest, the CCO will consider all information reasonably available to it about any material business, personal, or familial relationship involving Spectrum (and its affiliates) and a portfolio company, including the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A list of clients that are also public companies, which is prepared and updated by the Operations Department and retained in the Compliance Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Publicly available information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Information generally known within Spectrum.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Information actually known by senior executives or portfolio managers. When considering a proxy proposal, investment professionals involved in the decision-making process must disclose any potential material conflict that they are aware of to the CCO prior to any substantive discussion of a proxy matter.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Information obtained periodically from those persons whom the CCO reasonably believes could be affected by a conflict arising from a personal or familial relationship (e.g., portfolio managers, senior management).

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The CCO may, at his discretion, assign day-to-day responsibility for monitoring for conflicts to a designated person. With respect to monitoring of affiliates, the CCO in conjunction with PGI's CCO may rely on information barriers between Spectrum and its affiliates in determining the scope of its monitoring of conflicts involving affiliates.

<u>Determining Whether a Conflict of Interest is "Material"</u> – On a regular basis, CCO will monitor conflicts of interest to determine whether any may be "material" and therefore should be referred to PGI for resolution. The SEC has not provided any specific guidance as to what types of conflicts may be "material" for purposes of proxy voting, so therefore it would be appropriate to look to the traditional materiality analysis under the federal securities laws, i.e., that a "material" matter is one that is reasonably likely to be viewed as important by the average shareholder.

Whether a conflict may be material in any case will, of course, depend on the facts and circumstances. However, in considering the materiality of a conflict, Spectrum will use the following two-step approach:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Financial Materiality – The most likely indicator of materiality in most cases will be the dollar amount involved with the relationship in question. For purposes of proxy voting, it will be presumed that a conflict is not material unless it involves at least 5% of Spectrum's annual revenues or a minimum dollar amount of $1,000,000. Different percentages or dollar amounts may be used depending on the nature and degree of the conflict (e.g., a higher number if the conflict arises through an affiliate rather than directly with Spectrum).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Non-Financial Materiality – A non-financial conflict of interest might be material (e.g., conflicts involving personal or familial relationships) and should be evaluated based on the facts and circumstances of each case.

If the CCO has any question as to whether a particular conflict is material, it should presume the conflict to be material and refer it to the PGI's CCO for resolution. As in the case of monitoring conflicts, the CCO may appoint a designated person or subgroup of Spectrum's investment team to determine whether potential conflicts of interest may be material.

<u>Resolving a Material Conflict of Interest</u> – When an employee of Spectrum refers a potential material conflict of interest to the CCO, the CCO will determine whether a material conflict of interest exists based on the facts and circumstances of each particular situation. If the CCO determines that no material conflict of interest exists, no further action is necessary and the CCO will notify management accordingly. If the CCO determines that a material conflict exists, CCO must disclose the conflict to affected clients and obtain consent from each as to the manner in which Spectrum proposes to vote.

Clients may obtain information about how we voted proxies on their behalf by contacting Spectrum's Compliance Department.

**<u>PROXY VOTING GUIDELINES</u>** 

**CATEGORY I: <u>Routine Administrative Items</u>** 

<u>Philosophy</u>: Spectrum is willing to defer to management on matters of a routine administrative nature. We feel management is best suited to make those decisions which are essential to the ongoing operation of the company and which do not have a major economic impact on the corporation and its shareholders. Examples of issues on which we will normally defer to management's recommendation include:

1. selection of auditors

2. increasing the authorized number of common shares

3. election of unopposed directors

**CATEGORY II: <u>Special Interest Issues</u>** 

<u>Philosophy</u>: While there are many social, political, environmental and other special interest issues that are worthy of public attention, we do not believe the corporate proxy process is the appropriate arena in which to achieve gains in these areas. Our primary responsibility in voting proxies is to provide for the greatest long-term value for Spectrum's clients. We are opposed to proposals which involve an economic cost to the corporation, or which restrict the freedom of management to operate in the best interest of the corporation and its shareholders. However, in general we will abstain from voting on shareholder social, political and environmental proposals because their long-term impact on share value cannot be calculated with any reasonable degree of confidence.

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**CATEGORY III: <u>Issues Having the Potential for Significant Economic Impact</u>** 

<u>Philosophy</u>: Spectrum is not willing to defer to management on proposals which have the potential for major economic impact on the corporation and the value of its shares. We believe such issues should be carefully analyzed and decided by the owners of the corporation. Presented below are examples of issues which we believe have the potential for significant economic impact on shareholder value.

1.<u>Classification of Board of Directors</u>. Rather than electing all directors annually, these provisions stagger a board, generally into three annual classes, and call for only one-third to be elected each year. Staggered boards may help to ensure leadership continuity, but they also serve as defensive mechanisms. Classifying the board makes it more difficult to change control of a company through a proxy contest involving election of directors. In general, we vote on a case by case basis on proposals for staggered boards, but generally favor annual elections of all directors.

2.<u>Cumulative Voting of Directors</u>. Most corporations provide that shareholders are entitled to cast one vote for each director for each share owned - the one share, one vote standard. The process of cumulative voting, on the other hand, permits shareholders to distribute the total number of votes they have in any manner they wish when electing directors. Shareholders may possibly elect a minority representative to a corporate board by this process, ensuring representation for all sizes of shareholders. Outside shareholder involvement can encourage management to maximize share value. We generally support cumulative voting of directors.

3.<u>Prevention of Greenmail</u>. These proposals seek to prevent the practice of "greenmail", or targeted share repurchases by management of company stock from individuals or groups seeking control of the company. Since only the hostile party receives payment, usually at a substantial premium over the market value of its shares, the practice discriminates against all other shareholders. By making greenmail payments, management transfers significant sums of corporate cash to one entity, most often for the primary purpose of saving their jobs. Shareholders are left with an asset-depleted and often less competitive company. We think that if a corporation offers to buy back its stock, the offer should be made to all shareholders, not just to a select group or individual. We are opposed to greenmail and will support greenmail prevention proposals.

4.<u>Supermajority Provisions</u>. These corporate charter amendments generally require that a very high percentage of share votes (70-81%) be cast affirmatively to approve a merger, unless the board of directors has approved it in advance. These provisions have the potential to give management veto power over merging with another company, even though a majority of shareholders favor the merger. In most cases we believe requiring supermajority approval of mergers places too much veto power in the hands of management and other minority shareholders, at the expense of the majority shareholders, and we oppose such provisions.

5.<u>Defensive Strategies</u>. These proposals will be analyzed on a case by case basis to determine the effect on shareholder value. Our decision will be based on whether the proposal enhances long-term economic value.

6.<u>Business Combinations or Restructuring</u>. These proposals will be analyzed on a case by case basis to determine the effect on shareholder value. Our decision will be based on whether the proposal enhances long-term economic value.

7.<u>Executive and Director Compensation</u>. These proposals will be analyzed on a case by case basis to determine the effect on shareholder value. Our decision will be based on whether the proposal enhances long-term economic value.

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| |
|:---|
| **<u>Exhibit A to Proxy Policy</u>** |
| **<u>Report for Proxy Vote(s) Against ISS Recommendation(s)</u>** |
| This form should be completed in instances in which Spectrum Portfolio Manager(s) decide to vote against ISS recommendations. |
| **1. Security Name / Symbol:** |

---

**2. Issue up for vote:**

**3. Summary of ISS recommendation (see attached full ISS recommendation:**

**4. Reasons for voting against ISS recommendation (supporting documentation may be attached):**

**5. Determination of potential conflicts (if any):**

---

| |
|:---|
| **6. Contacted Compliance Department: Yes / No** |
| Name of individual contacted: |
| Date: |

---

---

| |
|:---|
| **7. Contacted other Spectrum portfolio managers who have position in same security: Yes / No** |
| Name of individual contacted: |
| Date: |

---

---

| |
|:---|
| **8. Portfolio Manager Signature:** |
| Date: |
| Portfolio Manager Name: |
| Portfolio Manager Signature\*: |
| Date: |
| Portfolio Manager Name: |

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\*Note: All Portfolio Managers who manage portfolios that hold relevant security must sign.

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**T. ROWE PRICE ASSOCIATES, INC.** 

**AND CERTAIN OF ITS INVESTMENT ADVISER AFFILIATES**

PROXY VOTING POLICIES AND PROCEDURES

February 2025

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**RESPONSIBILITY TO VOTE PROXIES**

T. Rowe Price Associates, Inc. and certain of its investment adviser affiliates<sup>1</sup> (collectively, "**T. Rowe Price**") have adopted these Proxy Voting Policies and Procedures ("**Policies and Procedures**") for the purpose of establishing formal policies and procedures for performing and documenting their fiduciary duty with regard to the voting of client proxies. This document is reviewed at least annually and updated as necessary.

T. Rowe Price recognizes and adheres to the principle that one of the privileges of owning stock in a company is the right to vote in the election of the company's directors and on matters affecting certain important aspects of the company's structure and operations that are submitted to shareholder vote. The U.S.-registered investment companies which T. Rowe Price sponsors and serves as investment adviser (the "**Price Funds**") as well as other investment advisory clients have delegated to T. Rowe Price certain proxy voting powers. As an investment adviser, T. Rowe Price has a fiduciary responsibility to such clients when exercising its voting authority with respect to securities held in their portfolios. T. Rowe Price reserves the right to decline to vote proxies in accordance with client-specific voting guidelines.

**Fiduciary Considerations.** It is the policy of T. Rowe Price that decisions with respect to proxy issues will be made in light of the anticipated impact of the issue on the desirability of investing in the portfolio company from the viewpoint of the particular advisory client or Price Fund. Proxies are voted solely in the interests of the client, Price Fund shareholders or, where employee benefit plan assets are involved, in the interests of plan participants and beneficiaries. Our intent has always been to vote proxies, where possible to do so, in a manner consistent with our fiduciary obligations and responsibilities.

One of the primary factors T. Rowe Price considers when determining the desirability of investing in a particular company is the quality and depth of its management. We recognize that a company's management is entrusted with the day-to-day operations of the company, as well as its long-term direction and strategic planning, subject to the oversight of the company's board of directors. Accordingly, our proxy voting guidelines are not intended to substitute our judgment for management's with respect to the company's day-to-day operations. Rather, our proxy voting guidelines are designed to promote accountability of a company's management and board of directors to its shareholders; to align the interests of management with those of shareholders; and to encourage companies to adopt best practices in terms of their corporate governance and disclosure. In addition to our proxy voting guidelines, we rely on a company's public filings, its board recommendations, its track record, country-specific best practices codes, our research providers and – most importantly – our investment professionals' views in making voting decisions. T. Rowe Price investment personnel do not coordinate with investment personnel of its affiliated investment adviser, TRPIM, with respect to proxy voting decisions.

T. Rowe Price seeks to vote all of its clients' proxies. In certain circumstances, T. Rowe Price may determine that refraining from voting a proxy is in a client's best interest, such as when the cost of voting outweighs the expected benefit to the client. For example, the practicalities and costs involved with international investing may make it impossible at times, and at other times disadvantageous, to vote proxies in every instance.

<sup>1</sup> This document is not applicable to T. Rowe Price Investment Management, Inc. ("TRPIM"). TRPIM votes proxies independently from the other T. Rowe Price-related investment advisers and has adopted its own proxy voting policy.

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**ADMINISTRATION OF POLICIES AND PROCEDURES**

**Environmental, Social and Governance Investing Committee.** T. Rowe Price's Environmental, Social and Governance Investing Committee ("**TRPA ESG Investing Committee**" or the "**Committee**") is responsible for establishing positions with respect to corporate governance and other proxy issues. Certain delegated members of the Committee also review questions and respond to inquiries from clients and mutual fund shareholders pertaining to proxy issues. While the Committee sets voting guidelines and serves as a resource for T. Rowe Price portfolio management, it does not have proxy voting authority for any Price Fund or advisory client. Rather, voting authority and responsibility is held by the Chairperson of the Price Fund's Investment Advisory Committee or the advisory client's portfolio manager. The Committee is also responsible for the oversight of third-party proxy services firms that T. Rowe Price engages to facilitate the proxy voting process.

**Global Proxy Operations Team.** The Global Proxy Operations team is responsible for administering the proxy voting process as set forth in the Policies and Procedures.

**Governance Team.** Our Governance team is responsible for reviewing the proxy agendas for all upcoming meetings and making company-specific recommendations to our global industry analysts and portfolio managers with regard to the voting decisions in their portfolios.

**Responsible Investment Team.** Our Responsible Investment team oversees the integration of environmental and social factors into our investment processes across asset classes. In formulating vote recommendations for matters of an environmental or social nature, the Governance team consults with the appropriate sector analyst from the Responsible Investment team, as appropriate.

**HOW PROXIES ARE REVIEWED, PROCESSED AND VOTED**

In order to facilitate the proxy voting process, T. Rowe Price has retained Institutional Shareholder Services ("**ISS**") as an expert in the proxy voting and corporate governance area. ISS specializes in providing a variety of fiduciary-level proxy advisory and voting services. These services include custom vote recommendations, research, vote execution, and reporting. Services provided by ISS do not include automated processing of votes on our behalf using the ISS Benchmark Policy recommendations. Instead, in order to reflect T. Rowe Price's issue-by-issue voting guidelines as approved each year by the TRPA ESG Investing Committee, ISS maintains and implements custom voting policies for the Price Funds and other advisory client accounts.

**Meeting Notification**

T. Rowe Price utilizes ISS' voting agent services to notify us of upcoming shareholder meetings for portfolio companies held in client accounts and to transmit votes to the various custodian banks of our clients. ISS tracks and reconciles our clients' holdings against incoming proxy ballots. If ballots do not arrive on time, ISS procures them from the appropriate custodian or proxy distribution agent. Meeting and record date information is updated daily and transmitted to T. Rowe Price through ProxyExchange, an ISS application.

**Vote Determination**

Each day, ISS delivers into T. Rowe Price's customized ProxyExchange environment a comprehensive summary of upcoming meetings, proxy proposals, publications discussing key proxy voting issues, and custom vote recommendations to assist us with proxy research and processing. For meetings with complex ballot items in certain international markets, research may be consulted from local domestic proxy research providers. The final authority and responsibility for proxy voting decisions remains with T. Rowe Price. Decisions with respect to proxy matters are made primarily in light of the anticipated impact of the issue on the desirability of investing in the company from the perspective of our clients.

Portfolio managers execute their responsibility to vote proxies in different ways. Some have decided to vote their proxies generally in line with the guidelines as set by the TRPA ESG Investing Committee. Others review the customized vote recommendations and approve them before the votes are cast. Portfolio managers have access to current reports summarizing all proxy votes in their client accounts. Portfolio managers who vote their proxies inconsistent with T. Rowe Price guidelines are required to document the rationale for their votes. The Global Proxy Operations team is responsible for maintaining this documentation and assuring that it adequately reflects the basis for any vote which is contrary to our proxy voting guidelines.

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**T. Rowe Price Voting Guidelines**

Specific proxy voting guidelines have been adopted by the TRPA ESG Investing Committee for all regularly occurring categories of management and shareholder proposals. The guidelines include regional voting guidelines as well as the guidelines for investment strategies with objectives other than purely financial returns, such as Impact and Net Zero. A detailed set of proxy voting guidelines is available on the T. Rowe Price website, www.troweprice.com/esg.

**Global Portfolio Companies**

The TRPA ESG Investing Committee has developed custom international proxy voting guidelines based on our proxy advisor's general global policies, regional codes of corporate governance, and our own views as investors in these markets. We apply a two-tier approach to determining and applying global proxy voting policies. The first tier establishes baseline policy guidelines for the most fundamental issues, which span the corporate governance spectrum without regard to a company's domicile. The second tier takes into account various idiosyncrasies of different countries, making allowances for standard market practices, as long as they do not violate the fundamental goals of good corporate governance. The goal is to enhance shareholder value through effective use of the shareholder franchise, recognizing that application of a single set of policies is not appropriate for all markets.

**Fixed Income and Passively Managed Strategies**

Proxy voting for our fixed income and indexed portfolios is administered by the Global Proxy Operations team using T. Rowe Price's guidelines as set by the TRPA ESG Investing Committee. Indexed strategies generally vote in line with the T. Rowe Price guidelines. Fixed income strategies generally follow the proxy vote determinations on security holdings held by our equity accounts unless the matter is specific to a particular fixed income security such as consents, restructurings, or reorganization proposals.

**Shareblocking**

Shareblocking is the practice in certain countries of "freezing" shares for trading purposes in order to vote proxies relating to those shares. In markets where shareblocking applies, the custodian or sub-custodian automatically freezes shares prior to a shareholder meeting once a proxy has been voted. T. Rowe Price's policy is generally to refrain from voting shares in shareblocking countries unless the matter has compelling economic consequences that outweigh the temporary loss of liquidity in the blocked shares.

**Securities on Loan**

The Price Funds and our institutional clients may participate in securities lending programs to generate income for their portfolios. Generally, the voting rights pass with the securities on loan; however, lending agreements give the lender the right to terminate the loan and pull back the loaned shares provided sufficient notice is given to the custodian bank in advance of the applicable deadline. T. Rowe Price's policy is generally not to vote securities on loan unless we determine there is a material voting event that could affect the value of the loaned securities. In this event, we have the discretion to pull back the loaned securities for the Price Funds in order to cast a vote at an upcoming shareholder meeting. A monthly monitoring process is in place to review securities on loan for the Price Funds and how they may affect proxy voting.

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**Monitoring and Resolving Conflicts of Interest**

The TRPA ESG Investing Committee is also responsible for monitoring and resolving potential material conflicts between the interests of T. Rowe Price and those of its clients with respect to proxy voting. We have adopted safeguards to ensure that our proxy voting is not influenced by interests other than those of our fund shareholders and other investment advisory clients. While membership on the Committee is diverse, it does not include individuals whose primary duties relate to client relationship management, marketing, or sales. Since T. Rowe Price's voting guidelines are predetermined by the Committee, application of the guidelines by portfolio managers to vote client proxies should in most instances adequately address any potential conflicts of interest. However, consistent with the terms of the Policies and Procedures, which allow portfolio managers to vote proxies opposite our general voting guidelines, the Committee regularly reviews all such proxy votes that are inconsistent with the proxy voting guidelines to determine whether the portfolio manager's voting rationale appears reasonable. The Committee also assesses whether any business or other material relationships between T. Rowe Price and a portfolio company (unrelated to the ownership of the portfolio company's securities) could have influenced an inconsistent vote on that company's proxy. Issues raising potential conflicts of interest are referred to designated members of the Committee for immediate resolution prior to the time T. Rowe Price casts its vote.

With respect to personal conflicts of interest, T. Rowe Price's Global Code of Conduct requires all employees to avoid placing themselves in a "compromising position" in which their interests may conflict with those of our clients and restrict their ability to engage in certain outside business activities. Portfolio managers or Committee members with a personal conflict of interest regarding a particular proxy vote must recuse themselves and not participate in the voting decisions with respect to that proxy.

**Specific Conflict of Interest Situations**

Voting of T. Rowe Price Group, Inc. common stock (sym: TROW) by certain T. Rowe Price Index Funds will be done in all instances in accordance with T. Rowe Price voting guidelines and votes inconsistent with the guidelines will not be permitted. In the event that there is no previously established guideline for a specific voting issue appearing on the T. Rowe Price Group proxy, the Price Funds will abstain on that voting item.

In addition, T. Rowe Price has voting authority for proxies of the holdings of certain Price Funds that invest in other Price Funds. Shares of the Price Funds that are held by other Price Funds will generally be voted in the same proportion as shares for which voting instructions from other shareholders are timely received. If voting instructions from other shareholders are not received, or if a T. Rowe Price Fund is only held by other T. Rowe Price Funds or other accounts for which T. Rowe Price has proxy voting authority, the fund will vote in accordance with its Board's instruction.

For shares of the Price Funds that are series of T. Rowe Price Equity Series, Inc., T. Rowe Price Fixed Income Series, Inc., and T. Rowe Price International Series, Inc. (collectively, the "Variable Insurance Portfolios") held by insurance company separate accounts for which the insurance company has not received timely voting instructions, as well as shares the insurance company owns, those shares shall be voted in the same proportion as shares for which voting instructions from contract holders are timely received.

**Limitations on Voting Proxies of Banks**

T. Rowe Price has obtained relief from the U.S. Federal Reserve Board (the "**FRB Relief**") which permits, subject to a number of conditions, T. Rowe Price to acquire in the aggregate on behalf of its clients, 10% or more of the total voting stock of a bank, bank holding company, savings and loan holding company or savings association (each a "Bank"), not to exceed a 15%aggregate beneficial ownership maximum in such Bank. One such condition affects the manner in which T. Rowe Price will vote its clients' shares of a Bank in excess of 10% of the Bank's total voting stock ("Excess Shares"). The FRB Relief requires that T. Rowe Price use its best efforts to vote the Excess Shares in the same proportion as all other shares voted, a practice generally referred to as "mirror voting," or in the event that such efforts to mirror vote are unsuccessful, Excess Shares will not be voted. With respect to a shareholder vote for a Bank of which T. Rowe Price has aggregate beneficial ownership of greater than 10% on behalf of its clients, T. Rowe Price will determine which of its clients' shares are Excess Shares on a pro rata basis across all of its clients' portfolios for which T. Rowe Price has the power to vote proxies.<sup>2</sup>

<sup>2</sup> The FRB Relief and the process for voting of Excess Shares described herein apply to the aggregate beneficial ownership of T. Rowe Price and TRPIM.

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**REPORTING, RECORD RETENTION AND OVERSIGHT**

The TRPA ESG Investing Committee, and certain personnel under the direction of the Committee, perform the following oversight and assurance functions, among others, over T. Rowe Price's proxy voting: (1) periodically samples proxy votes to ensure that they were cast in compliance with T. Rowe Price's proxy voting guidelines; (2) reviews, no less frequently than annually, the adequacy of the Policies and Procedures to make sure that they have been implemented effectively, including whether they continue to be reasonably designed to ensure that proxies are voted in the best interests of our clients; (3) performs due diligence on whether a retained proxy advisory firm has the capacity and competency to adequately analyze proxy issues, including the adequacy and quality of the proxy advisory firm's staffing and personnel and its policies; and (4) oversees any retained proxy advisory firms and their procedures regarding their capabilities to (i) produce proxy research that is based on current and accurate information and (ii) identify and address any conflicts of interest and any other considerations that we believe would be appropriate in considering the nature and quality of the services provided by the proxy advisory firm.

T. Rowe Price will furnish Vote Summary Reports, upon request, to its institutional clients that have delegated proxy voting authority. The report specifies the portfolio companies, meeting dates, proxy proposals, and votes which have been cast for the client during the period and the position taken with respect to each issue. Reports normally cover quarterly or annual periods and are provided to such clients upon request.

T. Rowe Price retains proxy solicitation materials, memoranda regarding votes cast in opposition to the position of a company's management, and documentation on shares voted differently. In addition, any document which is material to a proxy voting decision such as the T. Rowe Price proxy voting guidelines, Committee meeting materials, and other internal research relating to voting decisions are maintained in accordance with applicable requirements.

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**VAUGHAN NELSON INVESTMENT MANAGEMENT**

Investment Adviser Policies and Procedures Manual

Proxy Voting Policies and Procedures

Revised September 2025

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**Introduction**

Rule 206(4)-6 under the Investment Advisers Act of 1940 addresses an investment adviser's duty with regard to the voting of proxies for clients. Under the rule an adviser must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Adopt and implement written policies and procedures that are reasonably designed to ensure that client securities are voted in the client's best interest and to address procedures to be undertaken in the event a material conflict arises between the firm's interest and that of our clients as to how a particular security or proxy issue is voted;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Disclose to clients how they may obtain information regarding how the firm voted with respect to the client's securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Describe the firm's policies and procedures to clients and, upon request, furnish a copy of the policies and procedures to the requesting client.

Vaughan Nelson Investment Management, LP ("Vaughan Nelson") has created a Proxy Voting Policy, Procedures and Guideline which are reasonably designed to ensure proxies are voted in the best interest of our clients, are in compliance with Rule 206(4)-6 and address the areas noted by the U.S. Securities and Exchange Commission ("SEC") in Staff Legal Bulletin 20 as well as guidance issued from time to time by the SEC. Our authority to vote proxies for our clients is established through either the advisory contract (if the contract is silent, implied by the overall delegation of discretionary authority), or our fiduciary responsibility to ERISA clients under Department of Labor regulations.

**A.Proxy Voting Policy**

Vaughan Nelson Investment Management, LP ("Vaughan Nelson") will vote proxies of the securities held in its clients' portfolios on behalf of each client that has delegated proxy voting authority to Vaughan Nelson as investment adviser. Vaughan Nelson has adopted and implemented Proxy Voting Policies and Procedures ("Policy and Procedures") to ensure that, where it has voting authority, proxy matters are handled in the best interests of clients, in accordance with Vaughan Nelson's fiduciary duty, and all applicable law and regulations. The Policy and Procedures, as implemented by the Vaughan Nelson Proxy Voting Committee (PVC), are intended to support good corporate governance, including those corporate practices that address environmental and social issues ("ESG Matters"), with the objective of protecting shareholder interests and maximizing shareholder value.

Vaughan Nelson has also created a Proxy Voting Guideline (the "Guideline") reasonably believed to be in the best interest of clients relating to common and recurring issues found within proxy voting material. In drafting this guideline, the firm considered the nature of the firm's business and the types of securities being managed. The firm created the Guideline to help ensure voting consistency on issues common amongst issuers and to help serve as evidence that a vote was not the product of a conflict of interest but rather a vote in accordance with a pre-determined policy.

Vaughan Nelson uses the services of third parties to provide research, analysis, voting recommendations, and to administer the process of voting proxies for those clients for which Vaughan Nelson has voting authority (collectively the "Proxy Voting Services"). Vaughan Nelson will generally follow its express policy with input from the Proxy Voting Service that provides research, analysis and voting recommendations to Vaughan Nelson unless the Proxy Voting Committee determines that the client's best interests are served by voting otherwise.

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**B.General Guidelines**

The following general guidelines will apply when voting proxies on behalf of accounts for which Vaughan Nelson has voting authority.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.Client's Best Interests.** The Policy and Procedures are designed and implemented in a way that is reasonably expected to ensure that proxy matters are conducted in the best interests of clients. When considering the best interests of clients, Vaughan Nelson has determined that this means the best investment interest of its clients as shareholders of the issuer. In evaluating our clients' best interests, Vaughan Nelson considers ESG Matters as part of its investment process. The Procedures are intended to reflect the incorporation and impact of these factors in cases where they are material to the growth and sustainability of an issuer. Vaughan Nelson has established its Policy and Procedures to assist it in making its proxy voting decisions with a view toward enhancing the value of its clients' interests in an issuer over the period during which it expects its clients to hold their investments. Vaughan Nelson will vote against proposals that it believes could negatively impact the current or future market value of the issuer's securities during the expected holding period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.Client Proxy Voting Authority.** Rather than delegating proxy voting authority to Vaughan Nelson, a client may retain the authority to vote proxies for securities in its account (or delegate voting authority to another party). Vaughan Nelson will honor this instruction as included within the investment management agreement or separately authorized document.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.Stated Proxy Guideline.** In the interest of consistency in voting proxies on behalf of its clients, Vaughan Nelson has adopted a Proxy Guideline that identifies issues where Vaughan Nelson will (a) generally vote in favor of a proposal; (b) generally vote against a proposal; or (c) specifically consider its vote for or against a proposal. However, each vote may be cast differently than the stated guideline, taking into consideration all relevant facts and circumstances at the time of the vote. In cases where the recommendation of the issuer's management and the Proxy Voting Service are the same, the vote will generally be cast as recommended and will not be reviewed on a case-by- case basis by the Proxy Committee.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.Abstentions, Limitations and Other Exceptions.** Vaughan Nelson's general policy is to vote rather than abstain from voting on issues presented. However, in the following circumstances Vaughan Nelson may not vote a client's proxy:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Mutual Funds – where voting may be controlled by restrictions within the fund or the actions of authorized persons

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• International Securities – where the perceived benefit of voting an international proxy does not outweigh the anticipated costs of doing so

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• New Accounts – instances where security holdings assumed will be sold in the near term thereby limiting any benefit to be obtained by a vote of proxy material

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Unsupervised Securities – where the firm does not have a basis on which to offer advice

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Unjustifiable Costs – for example, the firm may abstain from voting a client proxy in a specific instance if, in our good faith determination, the costs involved in voting such proxy cannot be justified (e.g., total client holdings less than 10,000 shares and not held by a mutual fund; costs associated with obtaining translations of relevant proxy materials for non-U.S. securities) in light of the benefits to the client of voting. In accordance with the firm's fiduciary duties, the firm shall, in appropriate cases, weigh the costs and benefits of voting proxy proposals and shall make an informed decision with respect to whether voting a given proxy proposal is prudent. The decision will take into account the effect the vote is expected to have on the value of a client's investment and whether this expected effect would outweigh the cost of voting.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Administrative requirements for voting proxies in certain foreign jurisdictions such as providing a power of attorney to the client's local sub-custodian, cannot be fulfilled due to timing of the requirement, or the costs required to fulfill the administrative requirements appear to outweigh the benefits to the client of voting the proxy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Securities Not Held on Meeting Date – securities held on 'record date' but divested prior to the 'meeting date'

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The client, as of the record date, has loaned the securities to which the proxy relates and Vaughan Nelson has concluded that it is not in the best interest of the client to recall the loan or is unable to recall the loan in order to vote the securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ERISA accounts – with respect to ERISA clients for whom we have accepted the responsibility for proxy voting, we vote proxies in accordance with our duty of loyalty and prudence, compliance with the plan documents, and the firm's duty to avoid prohibited transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.Oversight.** All issues presented for shareholder vote are subject to the oversight of the Proxy Voting Committee, either directly or by application of this Policy and Guideline. All non-routine issues will generally be considered directly by the Proxy Voting Committee and/or, when necessary, the investment professionals responsible for an account holding the security and will be voted in the best investment interests of the client. All routine "for" and "against" issues will be voted according to the Guideline unless special factors require that they be considered by the PVC and/or the investment professionals responsible for an account holding the security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.Availability of Procedures**. Vaughan Nelson includes a description of its Proxy Voting Procedures in Part 2A of its Form ADV. Upon request, Vaughan Nelson also provides clients with a copy of its Proxy Voting Procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.Disclosure of Vote.** Vaughan Nelson will, upon request by a client, provide information about how each proxy was voted with respect to the securities in that client's account. Vaughan Nelson's policy is not to disclose a client's proxy voting records to third parties except as required by applicable law and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.N-PX reporting.** On November 2, 2022, the Securities and Exchange Commission (the "Commission") adopted amendments to enhance the form used by mutual funds, exchange-traded funds, and certain other registered funds ("funds") to report information about their proxy votes ("Form N-PX"). The amendments are intended to make these funds' proxy voting records more usable and easier to analyze, improving investors' ability to monitor how their funds vote and compare different funds' voting records. The rulemaking also requires institutional investment managers ("managers") to report how they voted on executive compensation, or so-called "say-on-pay" matters. Vaughan Nelson worked with its third-party proxy service provider (ISS) to develop these reports in support of the regulation amendments. Funds and managers will be required to file their first annual reports on amended Form N-PX by August 31, 2024, with these reports covering the period of July 1, 2023 to June 30, 2024.

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**C.Proxy Voting Committee (PVC)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.Proxy Voting Committee Composition.** The Proxy Voting Committee will be composed of a Compliance team member, a Portfolio Manager and other employees of Vaughan Nelson as needed. In the event that any member is unable to participate in a meeting of the Proxy Voting Committee, the member may designate another individual to act on the member's behalf. Each portfolio manager of an account that holds voting securities of an issuer or the analyst covering the issuer or its securities may be an ad hoc member of the Proxy Voting Committee in connection with voting proxies of that issuer. Voting determinations made by the Proxy Voting Committee will be memorialized electronically.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.Duties**. The Proxy Voting Committee's specific responsibilities include the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Annually reviewing the Proxy Voting Policies and Procedures to ensure they continue to be reasonably designed to ensure proxy votes are cast in the clients' best interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Annually reviewing, updating and modifying the Guidelines

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• overseeing the vote on proposals according to the predetermined Guideline,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• directing the vote on proposals where there is reason not to vote according to the predetermined Guideline or where proposals require special consideration,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• consulting with the portfolio managers and analysts for the accounts holding the security when necessary or appropriate.

**D.Proxy Voting Service (PVS)**

Vaughan Nelson intends to use a PVS in a limited capacity to assist the firm with its proxy voting responsibilities and to obtain supplemental research information which will assist the firm in voting some proxy items (i.e., ESG related items, items not addressed in the firm's proxy voting guideline). The PVS will be used primarily to collect proxy ballots for our clients, provide the firm a platform in which to indicate our vote, provide company research as a point of information to assist our firm with voting and assist our firm in generating proxy voting reports.

Given the different business lines of a PVS, there will be instances where the research received from the PVS might be influenced by a conflict of interest resulting from the PVS's affiliations or other relationships/engagements the PVS has with an issuer.

Vaughan Nelson will become informed of these conflicts by:

1)Periodically obtaining an updated list of the PVS's affiliates and a list of its significant relationships with publicly traded issuers that are clients.

Vaughan Nelson will use these lists along with any available on-line tools made available by the PVS to determine if an upcoming proxy vote may present a conflict of interest for the PVS and take that information into consideration if we intend to use the PVS's research to vote a proxy item that is not addressed in our firm's recurring Proxy Voting Guideline.

2)Obtaining a copy of the PVS's Code of Ethics and Policies and Procedures (or similar document) to ensure they address the topic of conflicts of interest with their employees and have processes in place to mitigate any issues.

3)Reviewing for indications of conflict for each proxy to be voted.

Vaughan Nelson will perform a third party service provider review of the PVS on an annual basis to determine whether the PVS: a) has been the subject of any inquiries, subpoenas, investigations or penalties by the SEC or any other regulator; b) has the capacity and competency (i.e. staffing, technology) to adequately analyze matters and provide its services; c) has appropriate disclosure regarding the source of information and methodologies used in formulating recommendations; d) has an effective process for seeking timely input from issuers and clients regarding its voting policies, methodologies, peer group construction, identifying and addressing conflicts of interest; e) has a process to correct material deficiencies in the issuer information or research it has provided

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**E.Conflicts of Interest**

Vaughan Nelson has established policies and procedures to ensure that proxy votes are voted in its clients' best interests and are not affected by any possible conflicts of interest. When determining the vote on any proposal, the Proxy Committee will not consider any benefit to Vaughan Nelson, any of its affiliates, any of its or their clients or service providers, other than benefits to the owner of the securities to be voted.

Vaughan Nelson envisions only rare situations where a conflict of interest would exist or potentially exist between our firm and our clients given the nature of our business, clients, relationship and the types of securities being managed. Notwithstanding, an actual or potential conflict may be resolved in either of the following manners:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If the proposal that gives rise to an actual or potential conflict is specifically addressed in the Guideline, the firm may vote the proxy in accordance with the pre-determined Guideline (provided that the pre-determined Guideline involves little or no discretion on the firm's part);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Otherwise, the firm will follow the recommendations of the PVS as to how the proxy should be voted. However, if the conflict of interest is a result of the PVS' affiliations or other lines of business, then the firm will take that information into consideration if the firm intends to use the PVS's research to vote a proxy item that is not addressed in our firm's recurring Proxy Voting Guideline.

Vaughan Nelson, as an indirect subsidiary of a Bank Holding Company (Natixis), is restricted from voting the shares it has invested in banking entities on behalf of its clients in instances where the aggregate ownership of all the Bank Holding Company's investment management subsidiaries exceed 5% of the outstanding voting shares of a bank. Where the aggregate ownership described exceeds the 5% threshold, the firm will instruct the PVS, an independent third party, to vote the proxies in line with their recommendation.

**F.Recordkeeping**

**G.Proxy Voting Procedures**

The procedures to be performed by a Compliance Individual (CI), the firm's Proxy Administrator (PA) and, as needed, the Proxy Voting Committee (or representative thereof) in the execution of our proxy voting duty to clients will be as follows:

<u>Client account Setup/Reconciliation</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.New clients will receive a copy of the "Description of Proxy Voting Policies and Procedures" as part of information provided in connection with the firm's New Client Checklist. This document details the proposed scope of Vaughan Nelson's proxy voting responsibilities and summarizes the processes used to vote proxies on behalf of a client if the client delegates the proxy voting responsibility to Vaughan Nelson.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.At the time a contract is entered into a determination will be made as to whether the client will retain proxy voting responsibilities. A separate acknowledgement will be obtained where the client elects to retain proxy voting responsibilities, if so desired.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.The PA will arrange for client proxy material to be forwarded to the PVS for voting.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Vaughan Nelson uploads an automated FTP position file each day (on a settlement date basis) detailing all the securities held on behalf of our clients. The PVS will reconcile the daily file uploaded against their records and inform us if there are any account discrepancies. VN will research the reason for any account discrepancies in a timely manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The PVS will match the proxy material they receive for the accounts listed in the daily FTP position file and follow up with any custodian that has not forwarded proxies within a reasonable time.

<u>Securities Lending</u>

In many cases Vaughan Nelson's clients participate in securities lending programs whereby the legal right to vote a proxy is transferred to the borrower as a result of the lending process. From time to time, circumstances may arise where Vaughan Nelson desires to vote shares in an upcoming proxy (i.e. acquisition, contested election, etc.) if it is determined that it is in the client's best interest. In these cases, Vaughan Nelson, if the record date has not passed, will request the client to 'recall' the security in question from loan until the proxy record date in order for the client (and thereby Vaughan Nelson) to be the holder of record in order to cast the proxy vote.

<u>Voting Process</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The PA will log into the PVS system daily to review the proxy meetings that need to be voted. The PA has developed a desk top procedure help track the upcoming proxy meetings to ensure that all proxies are voted in a timely manner and none are missed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.While the PVS system provides a monthly view of upcoming proxy meetings, sometimes the research materials are not immediately available. Through web access and the PVS system, the PA is able to determine for each security its record date, meeting date and whether the PVS has completed proxy research on the security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Once the PVS research reports are available for a proxy meeting, the meeting is ready to be voted. At such time, the PA will review our internal positions/holdings report detailing the shares held of the security for our clients and compare it for reasonableness to the positions/holdings report provided by the PVS. Sometimes, share discrepancies exist because a client might have shares on loan or because clients have opted to retain the responsibility to vote their own proxies. Although Vaughan Nelson relies mainly on account reconciliations (instead of share reconciliations) to ensure proxies are being voted, the PA will research certain share discrepancies as detailed in the PA's desk top procedures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Download the PVS proxy research for each security and save it to a shared drive to be used by the CI if needed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The PA will provide the CI with a copy of the voting form and provide a description of any conflict of interest for the company flagged by the PVS system.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.The CI will make a determination as to whether a material conflict exists with regard to the proxy or an individual proxy issue. The results of this determination will be documented and initialed on the proxy voting form. The CI will review the proxy issues against the firm's Guideline and cast each vote on the voting form, if able, and sign off on having voted those issues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)If all issues were able to be voted within the Guideline the package will be returned to the PA for online voting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)If issues exist for which a case-by-case review must be made the package is forwarded to the PVC. The PVC will review the information within the package and any other necessary information in order to formulate the vote to be cast. If necessary, the proxy item(s) will be forwarded to the appropriate Portfolio Manager for input. The rationale for any departures from the firm's Guideline will be documented within the package. All votes will be indicated on the voting form and a member of the PVC or the Portfolio Manager will sign off as to having voted those issues. The package will then be returned to the PA for voting.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)As described under "Conflicts of Interests", where a material conflict exists the firm may vote the issue 1) in accordance with the Guideline if the application of such policy to the issue at hand involves little or no discretion on the part of the firm, or 2) as indicated by the independent third-party research firm(if the PVS has no conflict), or 3) If both VN and the PVS have a conflict of interest, then this will be documented and taken into consideration when determining how the vote will be cast in the client's best interest . By voting conflicts in accordance with the indication of an independent third-party, the firm will be able to demonstrate that the vote was not a product of a conflict of interest. An indication that this was the approach taken to vote the issue will be made and signed off on by a member of the PVC. The package will then be returned to the PA for voting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.Through the software interface with the PVS the PA will indicate, review and submit our vote on individual securities. The PA is able to re-submit our vote up until the day before the meeting which can accommodate cases where new information may come to light.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.The PVS will then process the vote with the issuer on behalf of the firm.

<u>Review of User Access</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Vaughan Nelson will monitor and perform at least annually a formalized review of the user access for the PVS system, to ensure that all users with associated permissions are up to date.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>The CI will identify the current users who are granted access for proxy voting purposes. An email will be sent by the CI to the PVS administrator, asking to confirm what individuals currently have access rights.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Upon receipt, the CI will save the file with response provided to the shared drive and perform a reconciliation of the PVS list for accuracy. The reconciliation should include verifying any changes in personnel, which would require updates to user access in the PVS system. The CI will communicate and provide email correspondence back to the PVS administrator on any user access additions or removals, if necessary.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Documents and responses will be saved to the shared drive, which include the date of review undertaken.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Reconciliation of user access will be performed by the CI, on an as needed basis for individuals</u> joining the firm, or who <u>have left the firm.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Evidence of user access review will be kept in an organized location, and as confirmation for 206(4)-7 annual user access testing</u>.

------

**Victory Capital** 

H-12 Proxy Voting

June 30, 2024

------

**BACKGROUND AND RISKS**

Voting rights associated with security ownership are closely related to the discretionary asset management services VCM provides to its clients. Therefore, VCM should be capable of accepting and exercising voting authority on behalf of clients with the same standard of care, skill, prudence, and diligence it is subject to when exercising its investment authority on behalf of clients. Further, in order to exercise voting authority on behalf of clients, VCM must comply with Rule 206(4)-6 of the Advisers Act (the "proxy rule") and Rule 14Ad-1 of the Securities and Exchange Act of 1934 (the "proxy reporting rule"). The proxy rule requires VCM to adopt and implement written policies and procedures designed to ensure it votes securities in the best interest of clients including managing material conflicts of interest between VCM and its clients, to disclose to clients a summary of its proxy voting policies and procedures, how they may obtain a copy of these procedures, and information about how VCM voted their securities. The proxy reporting rule requires certain investment managers to report their proxy voting record annually on Form N-PX with respect to certain votes on executive compensation.

Inability to accept and exercise voting authority on behalf of clients or failure to comply with the proxy rule or proxy reporting rule could result in violations of securities law, breach of fiduciary duty, client harm, or damage to VCM's reputation.

**POLICY**

VCM will establish policies and procedures and retain resources necessary to ensure it is capable of exercising voting authority on behalf of clients according to the same standard of care with which it exercises investment authority. Because VCM will exercise voting authority, it will comply with the proxy rule and the proxy reporting rule and must vote securities in the best interest of clients.

For purposes of this policy, voting in the best interest of clients means using complete and accurate information to vote with the objective of increasing the long-term economic value of client assets. Similar to investment decision making, voting decisions are qualitative in nature and VCM will consider a variety of factors to arrive at vote decisions. Further a voting decision in the same security may be different between clients for the same reasons VCM clients are invested in different securities. For example, client agreements, investment strategies, or specific investment franchise views on ballot proposals may cause the same security to be voted in a different manner across VCM's client base.

VCM will vote all securities over which it has authority, provided the client has voting rights and there is sufficient time and information available to make informed decisions. VCM will take reasonable steps to obtain appropriate and timely information.

In situations where voting may impact the ability to trade a security (e.g., shareblocking), VCM will not vote unless it determines that voting is in a client's best interest.

For a copy of the guidelines (as defined below) please visit VCM's website at https://investor.vcm.com/policies. To obtain information on specific proxies voted by VCM, clients may contact their VCM client manager or email an inquiry to client_service_team@vcm.com.

VCM will create, maintain, and retain appropriate records related to voting client securities.

**LIST OF REQUIRED CONTROLS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Proxy Voting Committee (the "committee")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Client Investment Management Agreements ("IMAs")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Third-party proxy firm ("proxy firm")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• M-19 Vendor Due Diligence and Oversight ("vendor oversight policy")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Proxy voting guidelines

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Annual committee guideline review

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Form ADV, Part 2A

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• M-13 Record Retention and Destruction, Appendix A ("recordkeeping requirements")

------

**CONTROL IMPLEMENTATION PROCEDURES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The committee will consist of members with experience related to the functional areas applicable to voting client securities including responsible investing, investment management, operations, and compliance. The committee is responsible for exercising VCM's fiduciary responsibilities related to voting client securities including voting in the best interests of clients and identifying and managing conflicts of interest. The committee will be active, keep a charter, and maintain records that demonstrate adequate execution of its responsibilities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• When a client enters into an advisory relationship with VCM, proxy voting roles and responsibilities between the client and VCM will be fully disclosed. Responsibilities delegated to VCM will be communicated to the committee and the committee will be responsible for implementing voting requirements in accordance with each IMA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• In order to support its fiduciary duty related to voting client securities and comply with the proxy rule and proxy reporting rule, VCM will retain, and the committee will oversee a third-party proxy advisory firm ("proxy firm") to provide both administrative and advisory services related to voting client securities. In relation to the proxy reporting rule, the proxy firm will provide draft filings in the appropriate format. The Business Owner of this policy is responsible for ensuring the accuracy of the filing. The Compliance Owner is responsible for ensuring the report is filed in a timely manner and complies with the proxy reporting rule. Selection and ongoing oversight of the proxy firm will be conducted in accordance with the vendor oversight policy. The Sponsor, as defined in the vendor oversight policy, must be a member of the committee. Currently, VCM retains Institutional Shareholder Services Inc. as its proxy firm.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The committee will adopt written proxy voting guidelines authored by the proxy firm ("guidelines"). These guidelines can be used as standing instructions on how the proxy firm must vote ballots provided that the committee must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Have the ability to customize the guidelines.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Retain the ability to override the guidelines on individual ballot proposals at the client level.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Review the guidelines at least annually, implement customizations based on this review, and submit a written memo to the compliance committee documenting the results of the annual review that includes the name of the proxy firm, links to the specific guidelines adopted, and a description of customizations made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;◦ Make the memo available to clients upon request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The purpose of the guidelines is 1) to benefit from the specialized expertise related to voting securities provided by the proxy firm and to provide an independent source to resolve conflicts of interest identified between VCM and its clients. For the first purpose, the committee will take into account the guidelines but will have ultimate responsibility for voting decisions. The committee will, in its discretion, rely on additional sources such as portfolio manager input to ensure the voting decisions it makes are in the best interest of specific clients. If the guidelines are silent on any pending ballot proposal, the committee will exercise its voting responsibility with due care and document the rationale for the vote decision. For the second purpose, if the committee identifies a conflict of interest between VCM and clients, the committee must vote in accordance with the guidelines unless the rationale for deviating from guidelines has unanimous consent from the committee and is put in writing, including an analysis of how the conflict of interest is eliminated, mitigated, or disclosed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The proxy firm will provide technology-based platform that provides operational controls over voting securities that include, at minimum, ballot reconciliation, casting complete ballots in a timely manner and in accordance with adopted written guidelines, ability to adjust or override a vote based on committee input, and reporting capabilities that support compliance with the proxy reporting rule and VCM's need to oversee the proxy firm and report internally and externally. The committee is responsible for ensuring these controls are operating as intended though must, at minimum, develop reporting designed to ensure all eligible client accounts are properly set up and configured on the proxy firm's platform and that the proxy firm is voting securities in accordance with the guidelines and this policy. Such reports should be reviewed by the committee at regular intervals and any exceptions should be referred to the LCR department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The disclosures required under the proxy rule will be contained in VCM's Form ADV, Part 2A and will be delivered to clients at the time and frequency required by regulation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The committee will be familiar with the recordkeeping requirements related to voting client securities and will maintain records and ensure the proxy firm maintains records for the required periods.

---

| | |
|:---|:---|
| **<u>Compliance Policy Executive Summary</u>** | **<u>Compliance Policy Executive Summary</u>** |
| **Policy Name:** | H-12 Proxy Voting Policy |
| **Applicability:** | Victory Capital Management Inc. ("VCM") |
| **Category:** | Investments - General |
| **Compliance Owner:** | Chief Compliance Officer, VCM |
| **Business Owner:** | Director Responsible Investment, VCM |
| **Effective Date:** | June 30, 2024 |
| **Executive Summary:** | Policy and procedures governing the voting of client securities |

---

------

**WESTWOOD MANAGEMENT CORP.**

PROXY VOTING POLICIES & PROCEDURES

Updated March 31, 2025

------

**PROXY VOTING**

**Policy**

Westwood, as a matter of policy and as a fiduciary to our clients, has a responsibility for voting proxies for portfolio securities in a manner that is consistent with the best economic interests of the clients. Our firm maintains written policies and procedures as to the handling, research, voting and reporting of proxy voting and makes appropriate disclosures about our firm's proxy policies and practices. Our policy and practice includes the responsibility to monitor corporate actions, receive and vote client proxies and disclose any potential conflicts of interest. In addition, our policy and practice is to make information available to clients about the voting of proxies for their portfolio securities and to maintain relevant and required records.

**Firm Specific Policy**

Westwood has engaged Broadridge for assistance with the proxy voting process for our clients. Broadridge is a leading provider of full-service proxy voting services to the global financial industry. Westwood has also engaged Glass Lewis for assistance with proxy research and analysis. Glass Lewis provides complete analysis and voting recommendations on all proposals and is designed to assist investors in mitigating risk and improving long-term value. In most cases, Westwood agrees with Glass Lewis's recommendations; however, ballots are reviewed bi-monthly by our analysts, and we may choose to vote differently than Glass Lewis if we believe it to be in the client's best interest. In addition, Westwood will implement "echo voting" (voting pro rata with all other shareholders) for investment company clients relying on Investment Company Act §12(d)(1)(F) and Rule 12d1-3 in order to allow certain purchases of other investment companies in excess of limits that would otherwise apply.

**Responsibility**

Westwood's Operations Team has the responsibility for the implementation and monitoring of our proxy voting policy, practices, disclosures and record keeping, including outlining our voting guidelines in our procedures.

**Background**

Proxy voting is an important right of shareholders, and reasonable care and diligence must be taken to ensure that such rights are properly and timely exercised.

Investment advisers who are registered with the SEC, and who exercise voting authority with respect to client securities, are required by Rule 206(4)-6 of the Advisers Act to (a) adopt and implement written policies and procedures that are reasonably designed to ensure that client securities are voted in the best interests of clients, which must include how an adviser addresses material conflicts that may arise between an adviser's interests and those of its clients, (b) disclose to clients how they may obtain information from the adviser with respect to the voting of proxies for their securities, (c) describe a summary of its proxy voting policies and procedures and, upon request, to furnish a copy to its clients, and (d) to maintain certain records relating to the adviser's proxy voting activities when the adviser does have proxy voting authority.

**Procedure**

Westwood has adopted the following procedures to implement the firm's proxy voting policy, in addition to adopting the Glass Lewis Proxy Voting Guidelines (general guidelines and guidelines specific to Taft-Hartley). Westwood conducts reviews to monitor and ensure the firm's policy is observed, implemented properly and amended or updated, as appropriate.

**Proxy Voting Records**

With respect to proxy record keeping, the Operations Team maintains complete files for all clients. These files include a listing of all proxy materials sent on behalf of our clients along with individual copies of each response. Client access to these files can be arranged upon request. A voting summary will be furnished upon request.

**Voting Procedures**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All employees forward proxy materials received on behalf of clients to Broadridge. Westwood has engaged Broadridge for assistance with the proxy voting process for our clients and Glass Lewis provides voting recommendations;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Broadridge has access to holders' records and determines which client accounts hold the security to which the proxy relates;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Absent material conflicts, Broadridge, with the vote recommendations from Glass Lewis, determines how Westwood should vote the proxy in accordance with applicable voting guidelines;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Westwood's analysts review the Glass Lewis proxy voting recommendations on a bi-monthly basis. The analysts may choose to vote differently than Glass Lewis if they believe it is in the best interest of the client or where a different vote is warranted in light of the respective investment strategy;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.If Westwood chooses to vote differently than Glass Lewis, then Westwood overwrites the Glass Lewis recommendation on the ProxyEdge platform. If Westwood agrees with the Glass Lewis recommendations, no action is necessary; and,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.Broadridge completes the proxy in a timely and appropriate manner.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.For certain investment companies managed by Westwood and approved by the Chief Compliance Officer (each a "Westwood 12d1F Fund"), Westwood will implement echo voting for shares of other investment companies (each an "Acquired Fund") held by a Westwood 12d1F Fund. The Data Management Team will override any Glass Lewis proxy voting recommendations with respect to shares of an Acquired Fund held by a Westwood 12d1F Fund, and will instead, vote all such Acquired Fund shares pro rata with all other shareholders of each respective Acquired Fund. The Data Management Team will record any votes made with echo voting as overrides to the Glass Lewis recommendations.

**Disclosure**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Westwood provides required disclosures in Form ADV Part 2A, which summarizes these proxy voting policies and procedures and includes information whereby clients may request information regarding how Westwood voted the client's proxies; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Westwood's disclosure summary includes a description of how clients may obtain a copy of the firm's proxy voting policies and procedures. Westwood's proxy voting practice is disclosed in the firm's advisory agreements.

**Client Requests for Information**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.All client requests for information regarding proxy votes, or regarding policies and procedures that are received by any supervised person should be forwarded to the Operations Team; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.In response to any request, the Data Management Team prepares a written response with the information requested, and as applicable, includes the name of the issuer, the proposal voted upon, and how Westwood voted the client's proxy with respect to each proposal about which the client inquired.

**Voting Guidelines**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Westwood has engaged Broadridge and Glass Lewis for assistance with the proxy voting process for our clients; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Westwood analysts review the Glass Lewis proxy voting recommendations using the following guidelines:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.In the absence of specific voting guidelines from the client, Westwood votes proxies in the best interests of each client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.Westwood's policy is to vote all proxies from a specific issuer the same way for each client absent qualifying restrictions or other mandates from a client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.Clients are permitted to place reasonable restrictions and mandates on Westwood's voting authority in the same manner that they may place such restrictions on the actual selection of account securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.Westwood generally votes in favor of routine corporate housekeeping proposals such as the election of directors and selection of auditors absent conflicts of interest raised by an auditor's non-audit services;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.Westwood generally votes against proposals that cause board members to become entrenched or cause unequal voting rights; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi.In reviewing proposals, Westwood further considers the opinion of management, the effect on management, and the effect on shareholder value and the issuer's business practices.

**Conflicts of Interest**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Westwood attempts to identify any conflicts that exist between the interests of the firm and the client by (i) reviewing the relationship of Westwood with the issuer of each security, and (ii) determining if Westwood or any of its supervised persons has any financial, business or personal relationship with the issuer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.If a material conflict of interest exists, Westwood will determine whether it is appropriate to disclose the conflict to the affected clients, to give the clients an opportunity to vote the proxies themselves, or to address the voting issue through other objective means, such as voting in a manner consistent with a predetermined voting policy or receiving an independent third-party voting recommendation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Westwood will maintain a record of the voting resolution of any conflict of interest.

**Recordkeeping**

The Operations Team retains the following proxy records in accordance with the SEC's five-year retention requirement:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.These policies and procedures and any amendments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Each proxy statement that Westwood receives;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.A record of each vote that Westwood casts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Any document Westwood created that was material to making a decision how to vote proxies, or that memorializes that decision, including periodic reports to the Data Management Team or proxy committee, if applicable;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.A copy of each written request from a client for information on how Westwood voted such client's proxies and a copy of any written response;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.Copies of materials used to conduct due diligence on proxy voting service providers; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g.Records documenting audits and other periodic reviews of proxy voting recommendations.

**Proxy Voting Vendor Oversight**

Westwood conducts initial and ongoing oversight of proxy voting vendors with participation by the Compliance, Operations, Investment, and Client Service teams.

In addition to conducting initial due diligence, Westwood monitors and reviews all third-party proxy services to evaluate any conflicts of interest, consistency of voting with guidelines, fees and disclosures, and technical and operational capabilities, among other things.

At least annually, Westwood audits on a sampling basis the recommendations received from Glass Lewis to assess the consistency of its recommendations with Glass Lewis' published guidelines.

------

**PRINCIPAL FUNDS, INC.**

**PART C. OTHER INFORMATION**

**Item 28. Exhibits.**

Unless otherwise noted, documents containing Accession Numbers below have previously been filed with the Securities and Exchange Commission and are incorporated herein by reference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | | |
|:---|:---|:---|:---|:---|
| (a) | Articles of Incorporation | Articles of Incorporation | Articles of Incorporation | Articles of Incorporation |
|  | (1) | <u>[Articles of Amendment and Restatement dated 02/14/2019 - Filed as Ex-99(a) on 02/26/2019 (Accession No. 0000898745-19-000131)](https://www.sec.gov/Archives/edgar/data/898745/000089874519000131/ex99a-articlesofrestatemen.htm)</u> | <u>[Articles of Amendment and Restatement dated 02/14/2019 - Filed as Ex-99(a) on 02/26/2019 (Accession No. 0000898745-19-000131)](https://www.sec.gov/Archives/edgar/data/898745/000089874519000131/ex99a-articlesofrestatemen.htm)</u> | <u>[Articles of Amendment and Restatement dated 02/14/2019 - Filed as Ex-99(a) on 02/26/2019 (Accession No. 0000898745-19-000131)](https://www.sec.gov/Archives/edgar/data/898745/000089874519000131/ex99a-articlesofrestatemen.htm)</u> |
|  | (2) | <u>[Articles Supplementary dated](a2pfiarticlessuppl010626.htm)[01/06/2026](a2pfiarticlessuppl010626.htm)</u> \* | <u>[Articles Supplementary dated](a2pfiarticlessuppl010626.htm)[01/06/2026](a2pfiarticlessuppl010626.htm)</u> \* | <u>[Articles Supplementary dated](a2pfiarticlessuppl010626.htm)[01/06/2026](a2pfiarticlessuppl010626.htm)</u> \* |
| (b) | By-laws | By-laws | By-laws | By-laws |
|  | (1) | <u>[Amended and Restated By-laws effective 06/09/2020 - Filed as Ex-99(b) on 10/30/2020 (Accession No. 0000898745-20-000619)](https://www.sec.gov/Archives/edgar/data/898745/000089874520000619/pfiarbylaws060920.htm)</u> | <u>[Amended and Restated By-laws effective 06/09/2020 - Filed as Ex-99(b) on 10/30/2020 (Accession No. 0000898745-20-000619)](https://www.sec.gov/Archives/edgar/data/898745/000089874520000619/pfiarbylaws060920.htm)</u> | <u>[Amended and Restated By-laws effective 06/09/2020 - Filed as Ex-99(b) on 10/30/2020 (Accession No. 0000898745-20-000619)](https://www.sec.gov/Archives/edgar/data/898745/000089874520000619/pfiarbylaws060920.htm)</u> |
| (c) | Instruments Defining Rights of Security Holders: None other than those included in to Items 28(a) and 28(b). | Instruments Defining Rights of Security Holders: None other than those included in to Items 28(a) and 28(b). | Instruments Defining Rights of Security Holders: None other than those included in to Items 28(a) and 28(b). | Instruments Defining Rights of Security Holders: None other than those included in to Items 28(a) and 28(b). |
| (d) | Investment Advisory Agreements | Investment Advisory Agreements | Investment Advisory Agreements | Investment Advisory Agreements |
|  | (1) | <u>[Amended and Restated Management Agreement dated](d1pfiarmanagementagreement.htm)[03/01/2026](d1pfiarmanagementagreement.htm)</u> \* | <u>[Amended and Restated Management Agreement dated](d1pfiarmanagementagreement.htm)[03/01/2026](d1pfiarmanagementagreement.htm)</u> \* | <u>[Amended and Restated Management Agreement dated](d1pfiarmanagementagreement.htm)[03/01/2026](d1pfiarmanagementagreement.htm)</u> \* |
|  | (2) | <u>[DRA Cayman Corporation Amended and Restated Management Agreement dated 04/28/2022 - Filed as Ex-99(d)(2) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/ex99d2dra20220428armanagem.htm)</u> | <u>[DRA Cayman Corporation Amended and Restated Management Agreement dated 04/28/2022 - Filed as Ex-99(d)(2) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/ex99d2dra20220428armanagem.htm)</u> | <u>[DRA Cayman Corporation Amended and Restated Management Agreement dated 04/28/2022 - Filed as Ex-99(d)(2) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/ex99d2dra20220428armanagem.htm)</u> |
|  | (3) | <u>[GMS Cayman Corporation Amended and Restated Management Agreement dated 04/29/2022 - Filed as Ex-99(d)(3) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/ex99d3gms20220429armanagem.htm)</u> | <u>[GMS Cayman Corporation Amended and Restated Management Agreement dated 04/29/2022 - Filed as Ex-99(d)(3) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/ex99d3gms20220429armanagem.htm)</u> | <u>[GMS Cayman Corporation Amended and Restated Management Agreement dated 04/29/2022 - Filed as Ex-99(d)(3) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/ex99d3gms20220429armanagem.htm)</u> |
|  | (4) | <u>[GM Cayman Corporation Management Agreement dated 11/14/2025 - Filed as Ex-99(d)(5) on 12/16/2025 (Accession Number 0000898745-25-000688)](https://www.sec.gov/Archives/edgar/data/898745/000089874525000688/ex99d5gmmanagementagreemen.htm)</u> | <u>[GM Cayman Corporation Management Agreement dated 11/14/2025 - Filed as Ex-99(d)(5) on 12/16/2025 (Accession Number 0000898745-25-000688)](https://www.sec.gov/Archives/edgar/data/898745/000089874525000688/ex99d5gmmanagementagreemen.htm)</u> | <u>[GM Cayman Corporation Management Agreement dated 11/14/2025 - Filed as Ex-99(d)(5) on 12/16/2025 (Accession Number 0000898745-25-000688)](https://www.sec.gov/Archives/edgar/data/898745/000089874525000688/ex99d5gmmanagementagreemen.htm)</u> |
|  | (5) | a. | <u>[AllianceBernstein L.P. Amended & Restated Sub-Advisory Agreement dated 01/01/2024 - Filed as Ex-99(d)(2)a on 02/27/2024 (Accession No. 0000898745-24-000221)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000221/ex99d2a-pfiarsubxadvagmtwi.htm)</u> | <u>[AllianceBernstein L.P. Amended & Restated Sub-Advisory Agreement dated 01/01/2024 - Filed as Ex-99(d)(2)a on 02/27/2024 (Accession No. 0000898745-24-000221)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000221/ex99d2a-pfiarsubxadvagmtwi.htm)</u> |
|  |  | b. | <u>[Barrow, Hanley, Mewhinney & Strauss, LLC Amended & Restated Sub-Advisory Agreement dated 01/01/2023 - Filed as Ex-99(d)(2)b on 02/27/2023 (Accession No. 0001683863-23-001574)](https://www.sec.gov/Archives/edgar/data/898745/000168386323001574/f24464d3.htm)</u> | <u>[Barrow, Hanley, Mewhinney & Strauss, LLC Amended & Restated Sub-Advisory Agreement dated 01/01/2023 - Filed as Ex-99(d)(2)b on 02/27/2023 (Accession No. 0001683863-23-001574)](https://www.sec.gov/Archives/edgar/data/898745/000168386323001574/f24464d3.htm)</u> |
|  |  | c. | (1) | <u>[BlackRock Financial Management, Inc. Amended & Restated Sub-Advisory Agreement dated 08/24/2023 - Filed as Ex-99(d)(2)c(1) on 12/27/2023 (Accession No. 0000898745-23-000393)](https://www.sec.gov/Archives/edgar/data/898745/000089874523000393/ex99d2c1pfiblackrockarsub-.htm)</u> |
|  |  |  | (2) | <u>[BlackRock International Limited Amended & Restated Sub-Sub-Advisory Agreement dated 08/24/2023 - Filed as Ex-99(d)(2)c(2) on 12/27/2023 (Accession No. 0000898745-23-000393)](https://www.sec.gov/Archives/edgar/data/898745/000089874523000393/ex99d2c2pfiblackrockbilars.htm)</u> |
|  |  | d. | <u>[Brown Advisory LLC Amended & Restated Sub-Advisory Agreement dated 01/01/2020 - Filed as Ex-99(d)(2)e on 02/26/2020 (Accession No. 0000898745-20-0000125)](https://www.sec.gov/Archives/edgar/data/898745/000089874520000125/ex99-brownarsubadv010120.htm)</u> | <u>[Brown Advisory LLC Amended & Restated Sub-Advisory Agreement dated 01/01/2020 - Filed as Ex-99(d)(2)e on 02/26/2020 (Accession No. 0000898745-20-0000125)](https://www.sec.gov/Archives/edgar/data/898745/000089874520000125/ex99-brownarsubadv010120.htm)</u> |
|  |  | e. | <u>[Causeway Capital Management LLC Amended & Restated Sub-Advisory Agreement dated 07/01/2020 - Filed as Ex-99(d)(2)e on 10/30/2020 (Accession No. 0000898745-20-000619)](https://www.sec.gov/Archives/edgar/data/898745/000089874520000619/pficausewaycapitalarsub-ad.htm)</u> | <u>[Causeway Capital Management LLC Amended & Restated Sub-Advisory Agreement dated 07/01/2020 - Filed as Ex-99(d)(2)e on 10/30/2020 (Accession No. 0000898745-20-000619)](https://www.sec.gov/Archives/edgar/data/898745/000089874520000619/pficausewaycapitalarsub-ad.htm)</u> |
|  |  | f. | <u>[ClearBridge Investments (North America) Pty Limited Amended & Restated Sub-Advisory Agreement dated 01/01/2026](d5fpficlearbridgearsaagmt0.htm)</u> \* | <u>[ClearBridge Investments (North America) Pty Limited Amended & Restated Sub-Advisory Agreement dated 01/01/2026](d5fpficlearbridgearsaagmt0.htm)</u> \* |
|  |  | g. | (1) | <u>[CoreCommodity Management, LLC Sub-Advisory Agreement dated 05/01/2022 - Filed as Ex-99(d)(2)g on 07/01/2022 (Accession No. 0001683863-22-005229)](https://www.sec.gov/Archives/edgar/data/898745/000168386322005229/f12729d4.htm)</u> |
|  |  |  | (2) | <u>[CoreCommodity Management, LLC Sub-Advisory Agreement (DRA Cayman) dated 05/01/2022 - Filed as Ex-99(d)(2)g(2) on 12/27/2023 (Accession No. 0000898745-23-000393)](https://www.sec.gov/Archives/edgar/data/898745/000089874523000393/ex-99d2g2corecommoditysubx.htm)</u> |
|  |  | h. | (1) | <u>[Crabel Capital Management, LLC Sub-Advisory Agreement dated 05/05/2025 - Filed as Ex-99(d)(6)h(1) on 06/20/2025 (Accession No. 0000898745-25-000315)](https://www.sec.gov/Archives/edgar/data/898745/000089874525000315/a20250505pficrabelsub-advi.htm)</u> |
|  |  |  | (2) | <u>[Crabel Capital Management, LLC Sub-Advisory Agreement (GMS Cayman) - Filed as Ex-99(d)(6)h(2) on 06/20/2025 (Accession No. 0000898745-25-000315)](https://www.sec.gov/Archives/edgar/data/898745/000089874525000315/a20250505pficrabelcaymansu.htm)</u>  |
|  |  | i. | <u>[DDJ Capital Management, LLC (now known as Polen Capital Credit, LLC) Sub-Advisory Agreement dated 01/31/2022 - Filed as Ex-99(d)(2)h on 02/24/2022 (Accession No. 0001683863-22-001059)](https://www.sec.gov/Archives/edgar/data/898745/000168386322001059/f11080d4.htm)</u> | <u>[DDJ Capital Management, LLC (now known as Polen Capital Credit, LLC) Sub-Advisory Agreement dated 01/31/2022 - Filed as Ex-99(d)(2)h on 02/24/2022 (Accession No. 0001683863-22-001059)](https://www.sec.gov/Archives/edgar/data/898745/000168386322001059/f11080d4.htm)</u> |
|  |  | j. | <u>[Emerald Advisers, LLC Amended & Restated Sub-Advisory Agreement dated 01/01/2020 - Filed as Ex-99(d)(2)k on 02/26/2020 (Accession No. 0000898745-20-0000125)](https://www.sec.gov/Archives/edgar/data/898745/000089874520000125/ex99-emeraldarsubadv010120.htm)</u> | <u>[Emerald Advisers, LLC Amended & Restated Sub-Advisory Agreement dated 01/01/2020 - Filed as Ex-99(d)(2)k on 02/26/2020 (Accession No. 0000898745-20-0000125)](https://www.sec.gov/Archives/edgar/data/898745/000089874520000125/ex99-emeraldarsubadv010120.htm)</u> |
|  |  | k. | <u>[Gotham Asset Management, LLC Amended & Restated Sub-Advisory Agreement dated 10/01/2024 - Filed as Ex-99(d)(m) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/ex99dm-pfigothamarsubxadvi.htm)</u> | <u>[Gotham Asset Management, LLC Amended & Restated Sub-Advisory Agreement dated 10/01/2024 - Filed as Ex-99(d)(m) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/ex99dm-pfigothamarsubxadvi.htm)</u> |
|  |  | l. | (1) | <u>[Graham Capital Management, L.P. Amended & Restated Sub-Advisory Agreement dated 07/01/2020 - Filed as Ex-99(d)(2)n on 10/30/2020 (Accession No. 0000898745-20-000619)](https://www.sec.gov/Archives/edgar/data/898745/000089874520000619/pfigrahamarsub-advisoryagm.htm)</u> |
|  |  |  | (2) | <u>[Graham Capital Management, L.P. Sub-Advisory Agreement (GMS Cayman) dated 09/28/2018 - Filed as Ex-99(d)(2)m(2) on 12/27/2023 (Accession No. 0000898745-23-000393)](https://www.sec.gov/Archives/edgar/data/898745/000089874523000393/ex-99d2m2grahamxgmscaymans.htm)</u> |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
| m. | <u>[Grantham, Mayo, Van Otterloo & Co. LLC Sub-Advisory Agreement dated 02/15/2024 - Filed as Ex-99(d)(2)n on 02/27/2024 (Accession No. 0000898745-24-000221)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000221/ex99d2n-gmopfisubxadvagmt0.htm)</u> | <u>[Grantham, Mayo, Van Otterloo & Co. LLC Sub-Advisory Agreement dated 02/15/2024 - Filed as Ex-99(d)(2)n on 02/27/2024 (Accession No. 0000898745-24-000221)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000221/ex99d2n-gmopfisubxadvagmt0.htm)</u> |
| n. | <u>[Hotchkis & Wiley Capital Management, LLC Sub-Advisory Agreement dated 06/28/2018 - Filed as Ex-99(d)(2)v on 07/13/2018 (Accession No. 0000898745-18-000609)](https://www.sec.gov/Archives/edgar/data/898745/000089874518000609/hotchkiswileysubadvagmt062.htm)</u> | <u>[Hotchkis & Wiley Capital Management, LLC Sub-Advisory Agreement dated 06/28/2018 - Filed as Ex-99(d)(2)v on 07/13/2018 (Accession No. 0000898745-18-000609)](https://www.sec.gov/Archives/edgar/data/898745/000089874518000609/hotchkiswileysubadvagmt062.htm)</u> |
| o. | <u>[Loomis, Sayles & Company, L.P. Amended & Restated Sub-Advisory Agreement dated 10/01/2024 - Filed as Ex-99(d)(s) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/ex99ds-pfiloomissaylesarsu.htm)</u> | <u>[Loomis, Sayles & Company, L.P. Amended & Restated Sub-Advisory Agreement dated 10/01/2024 - Filed as Ex-99(d)(s) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/ex99ds-pfiloomissaylesarsu.htm)</u> |
| p. | <u>[Los Angeles Capital Management LLC Amended & Restated Sub-Advisory Agreement dated 10/01/2024 - Filed as Ex-99(d)(t) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/ex99dt-pfilacapitalarsubxa.htm)</u> | <u>[Los Angeles Capital Management LLC Amended & Restated Sub-Advisory Agreement dated 10/01/2024 - Filed as Ex-99(d)(t) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/ex99dt-pfilacapitalarsubxa.htm)</u> |
| q. | <u>[Newton Investment Management North America, LLC](d5qpfinewtonarsaagmt010126.htm)[Amended &](d5qpfinewtonarsaagmt010126.htm)[Restated](d5qpfinewtonarsaagmt010126.htm)[Sub-Advisory Agreement dated](d5qpfinewtonarsaagmt010126.htm)[01/01/2026](d5qpfinewtonarsaagmt010126.htm)</u> \* | <u>[Newton Investment Management North America, LLC](d5qpfinewtonarsaagmt010126.htm)[Amended &](d5qpfinewtonarsaagmt010126.htm)[Restated](d5qpfinewtonarsaagmt010126.htm)[Sub-Advisory Agreement dated](d5qpfinewtonarsaagmt010126.htm)[01/01/2026](d5qpfinewtonarsaagmt010126.htm)</u> \* |
| r. | <u>[N](d5rpfinifaarsa010126.htm)[omura Investments Fund Advisers](d5rpfinifaarsa010126.htm)[Amended & Restated](d5rpfinifaarsa010126.htm)[Sub-Advisory Agreement dated](d5rpfinifaarsa010126.htm)[01/01/2026](d5rpfinifaarsa010126.htm)</u> \* | <u>[N](d5rpfinifaarsa010126.htm)[omura Investments Fund Advisers](d5rpfinifaarsa010126.htm)[Amended & Restated](d5rpfinifaarsa010126.htm)[Sub-Advisory Agreement dated](d5rpfinifaarsa010126.htm)[01/01/2026](d5rpfinifaarsa010126.htm)</u> \* |
| s. | <u>[Nuveen Third Amended & Restated Sub-Advisory Agreement dated 01/13/2022 - Filed as Ex-99(d)(2)u on 02/24/2022 (Accession No. 0001683863-22-001059)](https://www.sec.gov/Archives/edgar/data/898745/000168386322001059/f11080d5.htm)</u> | <u>[Nuveen Third Amended & Restated Sub-Advisory Agreement dated 01/13/2022 - Filed as Ex-99(d)(2)u on 02/24/2022 (Accession No. 0001683863-22-001059)](https://www.sec.gov/Archives/edgar/data/898745/000168386322001059/f11080d5.htm)</u> |
| t. | <u>[Pictet Asset Management SA Amended & Restated Sub-Advisory Agreement dated 10/01/2017 - Filed as Ex-99(d)(2)dd(1) on 12/15/2017 (Accession No. 0000898745-17-001335)](https://www.sec.gov/Archives/edgar/data/898745/000089874517001335/ex-99d2dd1pictetxpfisubxad.htm)</u> | <u>[Pictet Asset Management SA Amended & Restated Sub-Advisory Agreement dated 10/01/2017 - Filed as Ex-99(d)(2)dd(1) on 12/15/2017 (Accession No. 0000898745-17-001335)](https://www.sec.gov/Archives/edgar/data/898745/000089874517001335/ex-99d2dd1pictetxpfisubxad.htm)</u> |
| u. | <u>[PineBridge Investments LLC Sub-Advisory Agreement dated](d5upfipinebridgesaagmt1230.htm)[12/30/2025](d5upfipinebridgesaagmt1230.htm)</u> \* | <u>[PineBridge Investments LLC Sub-Advisory Agreement dated](d5upfipinebridgesaagmt1230.htm)[12/30/2025](d5upfipinebridgesaagmt1230.htm)</u> \* |
| v. | <u>[Post Advisory Group, LLC Sub-Advisory Agreement](https://www.sec.gov/Archives/edgar/data/898745/000089874525000688/ex99d6vpfipostadvisorygrou.htm)[dated](https://www.sec.gov/Archives/edgar/data/898745/000089874525000688/ex99d6vpfipostadvisorygrou.htm)[11/03/2025 - Filed as Ex-99(d)(6)v on 12/16/2025 (Accession Number 0000898745-25-000688)](https://www.sec.gov/Archives/edgar/data/898745/000089874525000688/ex99d6vpfipostadvisorygrou.htm)</u> | <u>[Post Advisory Group, LLC Sub-Advisory Agreement](https://www.sec.gov/Archives/edgar/data/898745/000089874525000688/ex99d6vpfipostadvisorygrou.htm)[dated](https://www.sec.gov/Archives/edgar/data/898745/000089874525000688/ex99d6vpfipostadvisorygrou.htm)[11/03/2025 - Filed as Ex-99(d)(6)v on 12/16/2025 (Accession Number 0000898745-25-000688)](https://www.sec.gov/Archives/edgar/data/898745/000089874525000688/ex99d6vpfipostadvisorygrou.htm)</u> |
| w. | <u>[Principal Real Estate Investors, LLC Amended & Restated Sub-Advisory Agreement 01/01/2024 - Filed as Ex-99(d)(2)z on 02/27/2024 (Accession No. 0000898745-24-000221)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000221/ex99d2z-pfiprinreiarsubxad.htm)</u> | <u>[Principal Real Estate Investors, LLC Amended & Restated Sub-Advisory Agreement 01/01/2024 - Filed as Ex-99(d)(2)z on 02/27/2024 (Accession No. 0000898745-24-000221)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000221/ex99d2z-pfiprinreiarsubxad.htm)</u> |
| x. | <u>[Record Currency Management Limited Sub-Advisory Agreement dated 11/21/2024 - Filed as Ex-99(d)(aa) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/ex99daa-pfirecordcurrencys.htm)</u> | <u>[Record Currency Management Limited Sub-Advisory Agreement dated 11/21/2024 - Filed as Ex-99(d)(aa) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/ex99daa-pfirecordcurrencys.htm)</u> |
| y. | <u>[Spectrum Asset Management, Inc. Amended & Restated Sub-Advisory Agreement dated 01/01/2024 - Filed as Ex-99(d)(2)cc on 02/27/2024 (Accession No. 0000898745-24-000221)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000221/ex99d2cc-pfispectrumarsuba.htm)</u> | <u>[Spectrum Asset Management, Inc. Amended & Restated Sub-Advisory Agreement dated 01/01/2024 - Filed as Ex-99(d)(2)cc on 02/27/2024 (Accession No. 0000898745-24-000221)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000221/ex99d2cc-pfispectrumarsuba.htm)</u> |
| z. | <u>[T. Rowe Price Associates, Inc. Amended & Restated Sub-Advisory Agreement dated 05/01/2023 - Filed as Ex-99(d)(2)cc on 12/27/2023 (Accession No. 0000898745-23-000393)](https://www.sec.gov/Archives/edgar/data/898745/000089874523000393/ex99d2cc-pfitrowearsubxadv.htm)</u> | <u>[T. Rowe Price Associates, Inc. Amended & Restated Sub-Advisory Agreement dated 05/01/2023 - Filed as Ex-99(d)(2)cc on 12/27/2023 (Accession No. 0000898745-23-000393)](https://www.sec.gov/Archives/edgar/data/898745/000089874523000393/ex99d2cc-pfitrowearsubxadv.htm)</u> |
| aa. | <u>[Vaughan Nelson Investment Management, LP Amended & Restated Sub-Advisory Agreement dated 07/01/2020 - Filed as Ex-99(d)(2)ee on 10/30/2020 (Accession No. 0000898745-20-000619)](https://www.sec.gov/Archives/edgar/data/898745/000089874520000619/pfivaughanarsub-advisoryag.htm)</u> | <u>[Vaughan Nelson Investment Management, LP Amended & Restated Sub-Advisory Agreement dated 07/01/2020 - Filed as Ex-99(d)(2)ee on 10/30/2020 (Accession No. 0000898745-20-000619)](https://www.sec.gov/Archives/edgar/data/898745/000089874520000619/pfivaughanarsub-advisoryag.htm)</u> |
| bb. | <u>[Victory Capital Management, Inc. Amended & Restated Sub-Advisory Agreement dated 07/01/2023 - Filed as Ex-99(d)(2)ee on 12/27/2023 (Accession No. 0000898745-23-000393)](https://www.sec.gov/Archives/edgar/data/898745/000089874523000393/ex99d2ee-victoryarsubxadv0.htm)</u> | <u>[Victory Capital Management, Inc. Amended & Restated Sub-Advisory Agreement dated 07/01/2023 - Filed as Ex-99(d)(2)ee on 12/27/2023 (Accession No. 0000898745-23-000393)](https://www.sec.gov/Archives/edgar/data/898745/000089874523000393/ex99d2ee-victoryarsubxadv0.htm)</u> |
| cc. | (1) | <u>[Wellington Management Company LLP Amended & Restated Sub-Advisory Agreement dated 10/01/2024 - Filed as Ex-99(d)(gg)1 on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/ex99dgg1-pfiwellingtonarsu.htm)</u> |
|  | (2) | <u>[Wellington Management Company LLP Sub-Advisory Agreement (DRA Cayman) dated 03/21/2022 - Filed as Ex-99(d)(2)ff(2) on 12/27/2023 (Accession No. 0000898745-23-000393)](https://www.sec.gov/Archives/edgar/data/898745/000089874523000393/ex-99d2ff2wellingtonsubxad.htm)</u> |
| dd. | <u>[Westchester Capital Management, LLC Sub-Advisory Agreement dated 10/01/2021 - Filed as Ex-99(d)(2)hh on 12/28/2021 (Accession No. 0001683863-21-007448)](https://www.sec.gov/Archives/edgar/data/898745/000168386321007448/f10587d7.htm)</u> | <u>[Westchester Capital Management, LLC Sub-Advisory Agreement dated 10/01/2021 - Filed as Ex-99(d)(2)hh on 12/28/2021 (Accession No. 0001683863-21-007448)](https://www.sec.gov/Archives/edgar/data/898745/000168386321007448/f10587d7.htm)</u> |
| ee. | <u>[Westwood Management Corp. Amended & Restated Sub-Advisory Agreement dated 07/01/2020 - Filed as Ex-99(d)(2)ii on 10/30/2020 (Accession No. 0000898745-20-000619)](https://www.sec.gov/Archives/edgar/data/898745/000089874520000619/pfiwestwoodarsub-advisorya.htm)</u> | <u>[Westwood Management Corp. Amended & Restated Sub-Advisory Agreement dated 07/01/2020 - Filed as Ex-99(d)(2)ii on 10/30/2020 (Accession No. 0000898745-20-000619)](https://www.sec.gov/Archives/edgar/data/898745/000089874520000619/pfiwestwoodarsub-advisorya.htm)</u> |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| (e) | Underwriting Contracts | Underwriting Contracts | Underwriting Contracts |
|  | (1) | <u>[Amended & Restated Distribution Agreement for Class A, Class C, Class J, Class P, Class S, Class T, Class R-1, Class R-2, Class R-3, Class R-4, Class R-5, Class R-6 and Institutional Class Shares dated 06/12/2017 - Filed as Ex-99(e)(1)b on 07/13/2017 (Accession No. 0000898745-17-001053)](https://www.sec.gov/Archives/edgar/data/898745/000089874517001053/amendedrestateddistributio.htm)</u> | <u>[Amended & Restated Distribution Agreement for Class A, Class C, Class J, Class P, Class S, Class T, Class R-1, Class R-2, Class R-3, Class R-4, Class R-5, Class R-6 and Institutional Class Shares dated 06/12/2017 - Filed as Ex-99(e)(1)b on 07/13/2017 (Accession No. 0000898745-17-001053)](https://www.sec.gov/Archives/edgar/data/898745/000089874517001053/amendedrestateddistributio.htm)</u> |
|  | (2) | a. | <u>Form [Selling Agreement](https://www.sec.gov/Archives/edgar/data/898745/000089874519000725/ex9e2a-sellingagmtdtd092719.htm)[for Classes A, C, Institutional, R-1, R-2, R-3, R-4, R-5, and R-6 Shares - Filed as Ex-99(e)(2)a on 12/17/2019 (Accession No. 0000898745-19-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874519000725/ex9e2a-sellingagmtdtd092719.htm)</u> |
|  |  | b. | <u>Form [Amendment to Selling Agreement for Class S - Filed as Ex-99(e)(2)b on 12/15/2017 (Accession No. 0000898745-17-001335)](https://www.sec.gov/Archives/edgar/data/898745/000089874517001335/ex99e2b-classsamendmenttos.htm)</u> |
| (f) | Bonus or Profit Sharing Contracts -- Not Applicable | Bonus or Profit Sharing Contracts -- Not Applicable | Bonus or Profit Sharing Contracts -- Not Applicable |
| (g) | Custodian Agreements | Custodian Agreements | Custodian Agreements |
|  | (1) | a. | <u>[Custody Agreement between The Bank of New York Mellon and Principal Funds, Inc. dated 11/11/2011 - Filed as Ex-99(g)(1) on 07/16/2012 (Accession No. 0001144204-12-039659)](https://www.sec.gov/Archives/edgar/data/898745/000114420412039659/v318039_ex99-g1.htm)</u> |
|  |  | b. | <u>[Custody Agreement Supplement between The Bank of New York Mellon and Principal Funds, Inc. dated 04/16/2018 - Filed as Ex-99(g)(1)b on 02/26/2020 (Accession No. 0000898745-20-0000125)](https://www.sec.gov/Archives/edgar/data/898745/000089874520000125/ex99g1b-custodyagmtsuppbny.htm)</u> |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| | | c. | <u>[Custody Agreement Supplement dated 04/16/2018 Amendment between The Bank of New York Mellon and Principal Funds, Inc. dated 07/10/2019 - Filed as Ex-99(g)(1)d on 02/26/2020 (Accession No. 0000898745-20-0000125)](https://www.sec.gov/Archives/edgar/data/898745/000089874520000125/ex99g1d-custodyagmtsuppame.htm)</u> |
| | | d. | <u>[Custody Agreement Supplement between the The Bank of New York Mellon and Principal Funds, Inc. dated 11/07/2019 - Filed as Ex-99(g)(1)e on 02/26/2020 (Accession No. 0000898745-20-0000125)](https://www.sec.gov/Archives/edgar/data/898745/000089874520000125/ex99g1e-custodyagmtsuppbny.htm)</u> |
| | | e. | <u>[Custody Agreement Supplement dated 04/16/2018 Amended and Restated Appendix A between The Bank of New York Mellon and Principal Funds, Inc. dated 01/07/2020 - Filed as Ex-99(g)(1)f on 02/26/2020 (Accession No. 0000898745-20-0000125)](https://www.sec.gov/Archives/edgar/data/898745/000089874520000125/ex99g1f-custodyagmtsuppara.htm)</u> |
| | | f. | <u>[Custody Agreement Supplement dated 04/16/2018 Amended and Restated Appendix A between The Bank of New York Mellon and Principal Funds, Inc. dated 05/12/2020 - Filed as Ex-99(g)(1)g on 07/01/2022 (Accession No. 0001683863-22-005229)](https://www.sec.gov/Archives/edgar/data/898745/000168386322005229/f12729d10.htm)</u> |
| | | g. | <u>[Custody Agreement Supplement dated 11/07/2019 Amended and Restated Appendix A between The Bank of New York Mellon and Principal Funds, Inc. dated 09/23/2021 - Filed as Ex-99(g)(1)h on 07/01/2022 (Accession No. 0001683863-22-005229)](https://www.sec.gov/Archives/edgar/data/898745/000168386322005229/f12729d11.htm)</u> |
| | | h. | <u>[Custody Agreement Amendment to Schedule II between The Bank of New York Mellon and Principal Funds, Inc. dated 05/30/2025](g1hpfiamendmenttocustodyag.htm)</u> \* |
| (h) | Other Material Contracts | Other Material Contracts | Other Material Contracts |
|  | (1) | <u>[Amended](https://www.sec.gov/Archives/edgar/data/898745/000089874523000393/ex99h1-transferagencyagr11.htm)[&](https://www.sec.gov/Archives/edgar/data/898745/000089874523000393/ex99h1-transferagencyagr11.htm)[Restated Transfer Agency Agreement for Class A, Class C, Class J, Class S, Institutional Class, Class R-6, and Plan Class Shares dated 11/01/2023 - Filed as Ex-99(h)(1) on 12/27/2023 (Accession No. 0000898745-23-000393)](https://www.sec.gov/Archives/edgar/data/898745/000089874523000393/ex99h1-transferagencyagr11.htm)</u> | <u>[Amended](https://www.sec.gov/Archives/edgar/data/898745/000089874523000393/ex99h1-transferagencyagr11.htm)[&](https://www.sec.gov/Archives/edgar/data/898745/000089874523000393/ex99h1-transferagencyagr11.htm)[Restated Transfer Agency Agreement for Class A, Class C, Class J, Class S, Institutional Class, Class R-6, and Plan Class Shares dated 11/01/2023 - Filed as Ex-99(h)(1) on 12/27/2023 (Accession No. 0000898745-23-000393)](https://www.sec.gov/Archives/edgar/data/898745/000089874523000393/ex99h1-transferagencyagr11.htm)</u> |
|  | (2) | <u>[Amended & Restated Shareholder Services Agreement dated 01/12/2007 - Filed as Ex-99(h)(2)h on 12/14/2007 (Accession No. 0000898745-07-000184)](https://www.sec.gov/Archives/edgar/data/898745/000089874507000184/shrhldrsevagr-011207.txt)</u> | <u>[Amended & Restated Shareholder Services Agreement dated 01/12/2007 - Filed as Ex-99(h)(2)h on 12/14/2007 (Accession No. 0000898745-07-000184)](https://www.sec.gov/Archives/edgar/data/898745/000089874507000184/shrhldrsevagr-011207.txt)</u> |
|  | (3) | <u>[Investment Service Agreement dated 10/31/2002 - Filed as Ex-99(h)(3)c on 12/30/2002 (Accession No. 0001126871-02-000036)](https://www.sec.gov/Archives/edgar/data/898745/000112687102000036/invsvcagt.txt)</u> | <u>[Investment Service Agreement dated 10/31/2002 - Filed as Ex-99(h)(3)c on 12/30/2002 (Accession No. 0001126871-02-000036)](https://www.sec.gov/Archives/edgar/data/898745/000112687102000036/invsvcagt.txt)</u> |
|  | (4) | <u>[Amended & Restated Administrative Services Agreement dated 05/01/2010 - Filed as Ex-99(h)(5)a on 07/29/2010 (Accession No. 0000898745-10-000394)](https://www.sec.gov/Archives/edgar/data/898745/000089874510000394/h5a-adminsvcagr0501101.htm)</u> | <u>[Amended & Restated Administrative Services Agreement dated 05/01/2010 - Filed as Ex-99(h)(5)a on 07/29/2010 (Accession No. 0000898745-10-000394)](https://www.sec.gov/Archives/edgar/data/898745/000089874510000394/h5a-adminsvcagr0501101.htm)</u> |
|  | (5) | <u>[Amended & Restated Service Agreement dated 05/01/2010 - Filed as Ex-99(h)(6)a on 07/29/2010 (Accession No. 0000898745-10-000394)](https://www.sec.gov/Archives/edgar/data/898745/000089874510000394/h6a-svcagt050110.htm)</u> | <u>[Amended & Restated Service Agreement dated 05/01/2010 - Filed as Ex-99(h)(6)a on 07/29/2010 (Accession No. 0000898745-10-000394)](https://www.sec.gov/Archives/edgar/data/898745/000089874510000394/h6a-svcagt050110.htm)</u> |
|  | (6) | <u>[Amended & Restated Service Sub-Agreement dated 9/30/2005 - Filed as Ex-99(h)(7)g on 11/22/2005 (Accession No. 0000870786-05-000263)](https://www.sec.gov/Archives/edgar/data/898745/000087078605000263/service-subagrmt.txt)</u> | <u>[Amended & Restated Service Sub-Agreement dated 9/30/2005 - Filed as Ex-99(h)(7)g on 11/22/2005 (Accession No. 0000870786-05-000263)](https://www.sec.gov/Archives/edgar/data/898745/000087078605000263/service-subagrmt.txt)</u> |
|  | (7) | <u>[Principal Funds, Inc.](https://www.sec.gov/Archives/edgar/data/898745/000089874516000869/a12b-1contractualfeewaiver.htm)[-](https://www.sec.gov/Archives/edgar/data/898745/000089874516000869/a12b-1contractualfeewaiver.htm)[Contractual Fee Waiver Agreement (12b-1) dated 12/31/2015](https://www.sec.gov/Archives/edgar/data/898745/000089874516000869/a12b-1contractualfeewaiver.htm)[-](https://www.sec.gov/Archives/edgar/data/898745/000089874516000869/a12b-1contractualfeewaiver.htm)[Filed as Ex-99(h)(7) on 01/14/2016 (Accession No. 0000898745-16-000869)](https://www.sec.gov/Archives/edgar/data/898745/000089874516000869/a12b-1contractualfeewaiver.htm)</u> | <u>[Principal Funds, Inc.](https://www.sec.gov/Archives/edgar/data/898745/000089874516000869/a12b-1contractualfeewaiver.htm)[-](https://www.sec.gov/Archives/edgar/data/898745/000089874516000869/a12b-1contractualfeewaiver.htm)[Contractual Fee Waiver Agreement (12b-1) dated 12/31/2015](https://www.sec.gov/Archives/edgar/data/898745/000089874516000869/a12b-1contractualfeewaiver.htm)[-](https://www.sec.gov/Archives/edgar/data/898745/000089874516000869/a12b-1contractualfeewaiver.htm)[Filed as Ex-99(h)(7) on 01/14/2016 (Accession No. 0000898745-16-000869)](https://www.sec.gov/Archives/edgar/data/898745/000089874516000869/a12b-1contractualfeewaiver.htm)</u> |
|  | (8) | <u>[Principal Funds, Inc. and Principal Variable Contracts Funds, Inc. Interfund Lending Agreement dated 11/14/2025 - Filed as Ex-99(h)(8) on 12/16/2025 (Accession Number 0000898745-25-000688)](https://www.sec.gov/Archives/edgar/data/898745/000089874525000688/ex99h8pfipvcinterfundlendi.htm)</u> | <u>[Principal Funds, Inc. and Principal Variable Contracts Funds, Inc. Interfund Lending Agreement dated 11/14/2025 - Filed as Ex-99(h)(8) on 12/16/2025 (Accession Number 0000898745-25-000688)](https://www.sec.gov/Archives/edgar/data/898745/000089874525000688/ex99h8pfipvcinterfundlendi.htm)</u> |
|  | (9) | <u>[Principal Funds Inc. - Contractual Fee Waiver Agreement dated](h9pficontractualfeewaivera.htm)[03/01/2026](h9pficontractualfeewaivera.htm)</u> \* | <u>[Principal Funds Inc. - Contractual Fee Waiver Agreement dated](h9pficontractualfeewaivera.htm)[03/01/2026](h9pficontractualfeewaivera.htm)</u> \* |
|  | (10) | <u>[Form of Rule 12d1-4 Fund of Funds Investment Agreement - Filed as Ex-99(h)(10) on 02/24/2022 (Accession No. 0001683863-22-001059)](https://www.sec.gov/Archives/edgar/data/898745/000168386322001059/f11080d7.htm)</u> | <u>[Form of Rule 12d1-4 Fund of Funds Investment Agreement - Filed as Ex-99(h)(10) on 02/24/2022 (Accession No. 0001683863-22-001059)](https://www.sec.gov/Archives/edgar/data/898745/000168386322001059/f11080d7.htm)</u> |
|  | (11) | <u>[Powers of Attorney for Bhatia, Damos, Dyer, Grieb, Hymes, Kassam, Lattimer, McCullum, McMillan, and Swank dated 09/10/2025 - Filed as Ex-99(h)(12) on 12/16/2025 (Accession Number 0000898745-25-000688)](https://www.sec.gov/Archives/edgar/data/898745/000089874525000688/ex99h12pfi-powerofattorney.htm)</u> | <u>[Powers of Attorney for Bhatia, Damos, Dyer, Grieb, Hymes, Kassam, Lattimer, McCullum, McMillan, and Swank dated 09/10/2025 - Filed as Ex-99(h)(12) on 12/16/2025 (Accession Number 0000898745-25-000688)](https://www.sec.gov/Archives/edgar/data/898745/000089874525000688/ex99h12pfi-powerofattorney.htm)</u> |
| (i) | <u>[Legal Opinion](ipfi1031485blegalopinion20.htm)</u> \* | <u>[Legal Opinion](ipfi1031485blegalopinion20.htm)</u> \* | <u>[Legal Opinion](ipfi1031485blegalopinion20.htm)</u> \* |
| (j) | Other Opinions | Other Opinions | Other Opinions |
|  | (1) | <u>[Consent of Independent Registered Public Accounting Firm](j1consentofauditors022726.htm)</u> \* | <u>[Consent of Independent Registered Public Accounting Firm](j1consentofauditors022726.htm)</u> \* |
| (k) | Omitted Financial Statements -- Not Applicable | Omitted Financial Statements -- Not Applicable | Omitted Financial Statements -- Not Applicable |
| (l) | Initial Capital Agreements | Initial Capital Agreements | Initial Capital Agreements |
|  | (1) | Initial Capital Agreement dated 04/26/1993 – Filed as Ex-99(b)(13) on 04/12/1996 (Accession No. 0000898745-96-000012) This exhibit was originally filed in paper format. Accordingly, a hyperlink has not been provided. | Initial Capital Agreement dated 04/26/1993 – Filed as Ex-99(b)(13) on 04/12/1996 (Accession No. 0000898745-96-000012) This exhibit was originally filed in paper format. Accordingly, a hyperlink has not been provided. |
|  | (2) | <u>[Initial Capital Agreements dated 11/17/1997 – Filed as Ex-99(l)(2) and Ex-99(l)(3) on 09/22/2000 (Accession No. 0000898745-00-500024)](https://www.sec.gov/Archives/edgar/data/898745/000089874500500024/0000898745-00-500024-0017.txt)</u> | <u>[Initial Capital Agreements dated 11/17/1997 – Filed as Ex-99(l)(2) and Ex-99(l)(3) on 09/22/2000 (Accession No. 0000898745-00-500024)](https://www.sec.gov/Archives/edgar/data/898745/000089874500500024/0000898745-00-500024-0017.txt)</u> |
|  | (3) | <u>[Initial Capital Agreements – Filed as Ex-99(l)(4) through (l)(38) on 12/05/2000 (Accession No. 0000898745-00-000021)](https://www.sec.gov/Archives/edgar/data/898745/000089874500000021/0000898745-00-000021-0012.txt)</u> | <u>[Initial Capital Agreements – Filed as Ex-99(l)(4) through (l)(38) on 12/05/2000 (Accession No. 0000898745-00-000021)](https://www.sec.gov/Archives/edgar/data/898745/000089874500000021/0000898745-00-000021-0012.txt)</u> |
|  | (4) | <u>[Initial Capital Agreement dated 12/30/2002 – Filed as Ex-99(l)(39) on 12/30/2002 (Accession No. 0001126871-02-000036)](https://www.sec.gov/Archives/edgar/data/898745/000112687102000036/initialcapital.txt)</u> | <u>[Initial Capital Agreement dated 12/30/2002 – Filed as Ex-99(l)(39) on 12/30/2002 (Accession No. 0001126871-02-000036)](https://www.sec.gov/Archives/edgar/data/898745/000112687102000036/initialcapital.txt)</u> |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(5) <u>[Initial Capital Agreements dated 12/29/2003 and 12/30/2003 – Filed as Ex-99(l)(40](https://www.sec.gov/Archives/edgar/data/898745/000112704804000033/newfunds-invltr.txt)</u>) and <u>[Ex-99(l)(41) on 02/26/2004 (Accession No. 0001127048-04-000033)](https://www.sec.gov/Archives/edgar/data/898745/000112704804000033/prfdj-invltr.txt)</u>

(6) <u>[Initial Capital Agreement dated 06/01/2004 – Filed as Ex-99(l)(42) on 07/27/2004 (Accession No. 0000870786-04-000163)](https://www.sec.gov/Archives/edgar/data/898745/000087078604000163/invstmnt-ltr.txt)</u>

(7) <u>[Initial Capital Agreement dated 11/01/2004 – Filed as Ex-99(l)(43) on 12/13/2004 (Accession No. 0000870786-04-000242)](https://www.sec.gov/Archives/edgar/data/898745/000087078604000242/advsign-invltr.txt)</u>

(8) <u>[Initial Capital Agreement dated 12/29/2004 – Filed as Ex-99(l)(44) on 02/28/2005 (Accession No. 0000870786-05-000065)](https://www.sec.gov/Archives/edgar/data/898745/000087078605000065/invltr-1204.txt)</u>

(9) <u>[Initial Capital Agreement dated 03/01/2005 – Filed as Ex-99(l)(45) on 05/16/2005 (Accession No. 0000870786-05-000194)](https://www.sec.gov/Archives/edgar/data/898745/000087078605000194/invltr-prtglobalequity.txt)</u>

(10) <u>[Initial Capital Agreement dated 06/28/2005 – Filed as Ex-99(l)(46) on 11/22/2005 (Accession No. 0000870786-05-000263)](https://www.sec.gov/Archives/edgar/data/898745/000087078605000263/initalcap-ltr.txt)</u>

(11) <u>[Initial Capital Agreement dated 03/01/2006 – Filed as Ex-99(l)(47) on 10/20/2006 (Accession No. 0000898745-06-000160)](https://www.sec.gov/Archives/edgar/data/898745/000089874506000160/invtltr-0306.txt)</u>

(12) <u>[Initial Capital Agreement dated 01/10/2007 – Filed as Ex-99(l)(48) on 02/20/2008 (Accession No. 0000950137-08-002501)](https://www.sec.gov/Archives/edgar/data/898745/000095013708002501/c23411bpexv99wxlyx48y.htm)</u>

(13) <u>[Initial Capital Agreement dated 10/01/2007 and 02/29/2008 – Filed as Ex-99(l)(49)](https://www.sec.gov/Archives/edgar/data/898745/000089874508000017/invltr-100107.htm)</u> and<u>[Ex-99(l)(50) on 03/28/2008 (Accession No. 0000898745-08-000017)](https://www.sec.gov/Archives/edgar/data/898745/000089874508000017/invltr-022908.htm)</u>

(14) <u>[Initial Capital Agreement dated 05/01/2008 – Filed as Ex-99(l)(51) on 07/17/2008 (Accession No. 0000009713-08-000060)](https://www.sec.gov/Archives/edgar/data/898745/000000971308000060/investmentltr.htm)</u>

(15) <u>[Initial Capital Agreement dated 09/30/2008 – Filed as Ex-99(l)(52) on 12/12/2008 (Accession No. 0000898745-08-000166)](https://www.sec.gov/Archives/edgar/data/898745/000089874508000166/investmentltr.htm)</u>

(16) <u>[Initial Capital Agreements dated 12/15/2008 – Filed as Ex-99(l)(53) on 12/31/2008 (Accession No. 0000898745-08-000184)](https://www.sec.gov/Archives/edgar/data/898745/000089874508000184/investmentletters.htm)</u>

(17) <u>[Initial Capital Agreements dated 03/02/2009 and 09/09/2009 – Filed as Ex-99(l)(54](https://www.sec.gov/Archives/edgar/data/898745/000089874510000490/ex99_l54-investmentltr030209.htm)</u>) and <u>[Ex-99(l)(55) on 10/29/2010 (Accession No. 0000898745-10-000490)](https://www.sec.gov/Archives/edgar/data/898745/000089874510000490/ex99_l55-investmentltr090909.htm)</u>

(18) <u>[Initial Capital Agreement dated 12/30/2009 – Filed as Ex-99(l)(56) on 10/29/2010 (Accession No. 0000898745-10-000490)](https://www.sec.gov/Archives/edgar/data/898745/000089874510000490/ex99_l56-investmentltr123009.htm)</u>

(19) <u>[Initial Capital Agreement dated 03/01/2010 – Filed as Ex-99(l)(57) on 10/29/2010 (Accession No. 0000898745-10-000490)](https://www.sec.gov/Archives/edgar/data/898745/000089874510000490/ex99_l57-investmentltr030110.htm)</u>

(20) <u>[Initial Capital Agreement dated 03/16/2010 – Filed as Ex-99(l)(58) on 10/29/2010 (Accession No.0000898745-10-000490)](https://www.sec.gov/Archives/edgar/data/898745/000089874510000490/ex99_l58investmentltr031610.htm)</u>

(21) <u>[Initial Capital Agreement dated 07/12/2010 – Filed as Ex-99(l)(59) on 10/29/2010 (Accession No.0000898745-10-000490)](https://www.sec.gov/Archives/edgar/data/898745/000089874510000490/ex99_l59-investmentltr071210.htm)</u>

(22) <u>[Initial Capital Agreement dated 09/27/2010 – Filed as Ex-99(l)(60) on 12/30/2010 (Accession No. 0000898745-10-000522)](https://www.sec.gov/Archives/edgar/data/898745/000089874510000522/investmentltr09-272010.htm)</u>

(23) <u>[Initial Capital Agreement dated 12/29/2010 – Filed as Ex-99(l)(61) on 02/23/2011 (Accession No. 0000898745-11-000040)](https://www.sec.gov/Archives/edgar/data/898745/000089874511000040/investmentletterdtd122910.htm)</u>

(24) <u>[Initial Capital Agreement dated 06/06/2011 – Filed as Ex-99(l)(62) on 10/12/2011 (Accession No. 0000898745-11-000711)](https://www.sec.gov/Archives/edgar/data/898745/000089874511000711/smid-invltr.htm)</u>

(25) <u>[Initial Capital Agreement dated 10/24/2011 – Filed as Ex-99(l)(63) on 12/30/2011 (Accession No. 0001144204-11-072069)](https://www.sec.gov/Archives/edgar/data/898745/000114420411072069/v243281_ex99-l63.htm)</u>

(26) <u>[Initial Capital Agreement dated 03/01/2012 – Filed as Ex-99(l)(64) on 06/13/2012 (Accession No. 0001144204-12-034634)](https://www.sec.gov/Archives/edgar/data/898745/000114420412034634/v311389_ex99l-64.htm)</u>

(27) <u>[Initial Capital Agreements dated 06/14/2012 – Filed as Ex-99(l)(65](https://www.sec.gov/Archives/edgar/data/898745/000114420412039659/v318039_exl-65.htm)</u>) and <u>[Ex-99(l)(66) on 07/16/2012 (Accession No. 0001144204-12-039659)](https://www.sec.gov/Archives/edgar/data/898745/000114420412039659/v318039_exl-66.htm)</u>

(28) <u>[Initial Capital Agreement dated 12/28/2012 – Filed as Ex-99(l)(67) on 02/28/2013 (Accession No. 0000898745-13-000071)](https://www.sec.gov/Archives/edgar/data/898745/000089874513000071/l67-invltr122812.htm)</u>

(29) <u>[Initial Capital Agreement dated 03/01/2013 – Filed as Ex-99(l)(68) on 05/07/2013 (Accession No. 0000898745-13-000459)](https://www.sec.gov/Archives/edgar/data/898745/000089874513000459/l68-investmentletterx030113.htm)</u>

(30) <u>[Initial Capital Agreement dated 03/14/2014 (Capital Securities Fund) – Filed as Ex-99(l)(69) on 03/28/2014 (Accession No. 0000898745-14-000513)](https://www.sec.gov/Archives/edgar/data/898745/000089874514000513/ex-l69investmentletter0314.htm)</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

(31) <u>[Initial Capital Agreement dated 09/30/2013 (Blue Chip and Global Opportunities) – Filed as Ex-99(l)(70) on 10/31/2013 (Accession No. 0000898745-13-000729)](https://www.sec.gov/Archives/edgar/data/898745/000089874513000729/l70initialcapagreement.htm)</u>

(32) <u>[Initial Capital Agreement dated 12/30/2013 (Opportunistic Municipal) – Filed as Ex-99(l)(71) on 02/27/2014 (Accession No. 0000898745-14-000071)](https://www.sec.gov/Archives/edgar/data/898745/000089874514000071/l71-invltroppmuni.htm)</u>

(33) <u>[Initial Capital Agreement dated 06/03/2014 (share class additions) – Filed as Ex-99(l)(72) on 06/20/2014 (Accession No. 0000898745-14-000687)](https://www.sec.gov/Archives/edgar/data/898745/000089874514000687/l72pfi-investmentletter060.htm)</u>

(34) <u>[Initial Capital Agreement dated 06/11/2014 (International Small Company) – Filed as Ex-99(l)(73) on 06/20/2014 (Accession No. 0000898745-14-000687)](https://www.sec.gov/Archives/edgar/data/898745/000089874514000687/l73pfi-investmentletter061.htm)</u>

(35) <u>[Initial Capital Agreement dated 09/30/2014 (Principal LifeTime Hybrids - Instl) – Filed as Ex-99(l)(75) on 10/15/2014 (Accession No. 0000898745-14-000996)](https://www.sec.gov/Archives/edgar/data/898745/000089874514000996/l75-pfixlifetimehybridisha.htm)</u>

(36) <u>[Initial Capital Agreement dated 11/25/2014 (Class R-6 - 6 Funds) – Filed as Ex-99(l)(37) on 12/29/2014 (Accession No. 000898745-14-001274)](https://www.sec.gov/Archives/edgar/data/898745/000089874514001274/l37-pfixinvestmentletter11.htm)</u>

(37) <u>[Initial Capital Agreements dated 12/31/2014 (Real Estate Allocation and Real Estate Debt Income Funds, addition of Class R-6 to Diversified Real Asset and Institutional Class to International Small Company Funds) – Filed as Ex-99(l)(38) on 02/26/2015 (Accession No. 0000898745-15-000123)](https://www.sec.gov/Archives/edgar/data/898745/000089874515000123/pfiinvltrs-123114.htm)</u>

(38) <u>[Initial Capital Agreement dated 02/27/2015 (Cal Muni - Instl) – Filed as Ex-99(l)(40) on 05/18/2015 (Accession No. 0000898745-15-000325)](https://www.sec.gov/Archives/edgar/data/898745/000089874515000325/pfi-investmentltrx022715.htm)</u>

(39) <u>[Initial Capital Agreement dated 03/10/2015 (Opp Muni - Instl) – Filed as Ex-99(l)(41) on 05/18/2015 (Accession No. 0000898745-15-000325)](https://www.sec.gov/Archives/edgar/data/898745/000089874515000325/pfi-investmentltrx031015.htm)</u>

(40) <u>[Initial Capital Agreement dated 05/18/2015 (Tax-Exempt Bond - Instl) – Filed as Ex-99(l)(42) on 06/12/2015 (Accession No. 0000898745-15-000404)](https://www.sec.gov/Archives/edgar/data/898745/000089874515000404/ex-99l42xpfixinvltrx051815.htm)</u>

(41) <u>[Initial Capital Agreement dated 08/24/2015 (California Municipal Fund - P, Principal LifeTime Hybrid Income - R-6, Principal LifeTime Hybrid 2015 - R-6, Principal LifeTime Hybrid 2020 - R-6, Principal LifeTime Hybrid 2025 - R-6, Principal LifeTime Hybrid 2030 - R-6, Principal LifeTime Hybrid 2035 - R-6, Principal LifeTime Hybrid 2040 - R-6, Principal LifeTime Hybrid 2045 - R-6, Principal LifeTime Hybrid 2050 - R-6, Principal LifeTime Hybrid 2055 - R-6, Principal LifeTime Hybrid 2060 - R-6, SAM Balanced - P, SAM Conservative Balanced - P, SAM Conservative Growth - P, SAM Flexible Income - P, SAM Strategic Growth - P, Tax-Exempt Bond Fund - P) – Filed as Ex-99(l)(44) on 09/18/2015 (Accession No. 0000898745-15-000653)](https://www.sec.gov/Archives/edgar/data/898745/000089874515000653/ex-99l44xpfiinitialcapital.htm)</u>

(42) <u>[Initial Capital Agreement dated 03/07/2016 (Class R-3 shares, Class R-4 shares, and Class R-5 to the Global Real Estate Securities Fund) - Filed ax Ex-99(l)(47) on 03/29/2016 (Accession No. 0000898745-16-001192)](https://www.sec.gov/Archives/edgar/data/898745/000089874516001192/pfi-investmentltrgres030716.htm)</u>

(43) <u>[Initial Capital Agreement dated 03/29/2016 (Class R-3 shares, Class R-4 shares, and Class R-5 to the Blue Chip Fund and Diversified Real Asset Fund) - Filed as Ex-99(l)(48) on 04/08/2016 (Accession No. 0000898745-16-001225)](https://www.sec.gov/Archives/edgar/data/898745/000089874516001225/ex99l48-initialcapagmt0329.htm)</u>

(44) <u>[Initial Capital Agreement dated 07/11/2016 (Finisterre Unconstrained Emerging Markets Bond Fund Class A, P, and Institutional shares) - Filed as Ex-99(l)(50) on 10/13/2016 (Accession No. 0000898745-16-001543)](https://www.sec.gov/Archives/edgar/data/898745/000089874516001543/pfiinvltr-071116.htm)</u>

(45) <u>[Initial Capital Agreement dated 11/22/2016 (Class R-6 shares for High Yield, International Emerging Markets, International I, MidCap, MidCap S&P 400 Index, Real Estate Securities, SmallCap, and SmallCap S&P 600 Index Funds) - Filed as Ex-99(l)(51) on 12/28/2016 (Accession No. 0000898745-16-001858)](https://www.sec.gov/Archives/edgar/data/898745/000089874516001858/ex99l51-initialcapitalagmt.htm)</u>

(46) <u>[Initial Capital Agreement dated 01/03/2017 (Class R-6 shares for Blue Chip, Edge MidCap, International Equity Index, International Small Company, Preferred Securities, Real Estate Debt Income, and Small-MidCap Dividend Income Funds) - Filed as Ex-99(l)(52) on 01/30/2017 (Accession No. 0000898745-17-000041)](https://www.sec.gov/Archives/edgar/data/898745/000089874517000041/ex99l52-initialcapitalagmt.htm)</u>

(47) <u>[Initial Capital Agreement dated 06/12/2017 (Class R-6 shares for Global Diversified Income and Global Multi-Strategy) – Filed as Ex-99(l)(55) on 06/23/2017 (Accession No. 0000898745-17-001004)](https://www.sec.gov/Archives/edgar/data/898745/000089874517001004/ex-99i54xinitialcapagreeme.htm)</u>

(48) <u>[Initial Capital Agreement dated 09/06/2017 (Principal LifeTime 2065 and Principal LifeTime Hybrid 2065 Funds) - Filed as Ex-99(l)(56) on 09/08/2017 (Accession No. 0000898745-17-001118)](https://www.sec.gov/Archives/edgar/data/898745/000089874517001118/ex-99l56xinitialcaptalagrm.htm)</u>

(49) <u>[Initial Capital Agreement dated 09/11/2017 (Class J shares for Blue Chip Fund) - Filed as Ex-99(l)(57) on 10/06/2017 (Accession No. 0000898745-17-001219)](https://www.sec.gov/Archives/edgar/data/898745/000089874517001219/pfiinitialcapitalagmtblchi.htm)</u>

(50) <u>[Initial Capital Agreement dated 12/20/2017 (Institutional Class shares for Government Money Market Fund) - Filed as Ex-99(l)(57) on 12/29/2017 (Accession No. 0000898745-17-001402)](https://www.sec.gov/Archives/edgar/data/898745/000089874517001402/ex99l57-initialcapitalagmt.htm)</u>

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
| | (51) | <u>[Initial Capital Agreement dated 03/01/2018 (Class J shares for all Principal LifeTime Hybrid Funds) - Filed as Ex-99(l)(58) on 04/13/2018 (Accession No. 0000898745-18-000319)](https://www.sec.gov/Archives/edgar/data/898745/000089874518000319/ex99l58-initialcapitalagmt.htm)</u> |
| | (52) | <u>[Initial Capital Agreement dated 10/09/2018 (Class J shares for Equity Income Fund) - Filed as Ex-99(I)(58) on 11/01/2018 (Accession No. 0000898745-18-000852)](https://www.sec.gov/Archives/edgar/data/898745/000089874518000852/ex-99l59initialcapitalagmt.htm)</u> |
| | (53) | <u>[Initial Capital Agreement dated 03/01/2019 (Class R-6 shares for Diversified International Fund) - Filed as Ex-99(l)(60) on 03/29/2019 (Accession No. 0000898745-19-000316)](https://www.sec.gov/Archives/edgar/data/898745/000089874519000316/ex-99l60xpfixpgiinvestment.htm)</u> |
| | (54) | <u>[Initial Capital Agreement dated 03/01/2019 (Class R-3 and R-5 shares for all LifeTime Hybrid Funds) - Filed as Ex-99(l)(61) on 03/29/2019 (Accession No. 0000898745-19-000316)](https://www.sec.gov/Archives/edgar/data/898745/000089874519000316/ex-99l61xpfixpgiinvestment.htm)</u> |
| | (55) | <u>[Initial Capital Agreement dated 04/02/2019 (Class A and R-6 shares for MidCap Value I Fund) - Filed as Ex-99(l)(62) on 06/10/2019 (Accession No. 0000898745-19-000437)](https://www.sec.gov/Archives/edgar/data/898745/000089874519000437/pfi-pgiinvestmentletterxmc.htm)</u> |
| | (56) | <u>[Initial Capital Agreement dated 09/22/2022 (Institutional Class shares for Global Sustainable Listed Infrastructure Fund) - Filed as Ex-99(l)(60) on 11/17/2022 (Accession No. 0000898745-22-000193)](https://www.sec.gov/Archives/edgar/data/898745/000089874522000193/ex99l60-investmentltrgloba.htm)</u> |
| | (57) | <u>[Initial Capital Agreement dated 03/01/2023 (Principal LifeTime 2070 Fund and Principal LifeTime Hybrid 2070 Fund) - Filed as Ex-99(l)(60) on 12/27/2023 (Accession No. 0000898745-23-000393)](https://www.sec.gov/Archives/edgar/data/898745/000089874523000393/ex99l60-letterofinvestment.htm)</u> |
| | (58) | <u>[Initial Capital Agreement dated 11/14/2025 (Global Macro Fund) - Filed as Ex-99(l)(58) on 12/16/2025 (Accession Number 0000898745-25-000688)](https://www.sec.gov/Archives/edgar/data/898745/000089874525000688/ex99l58investmentltrglobal.htm)</u> |
| (m) | Rule 12b-1 Plan | Rule 12b-1 Plan |
|  | (1) | <u>[Class A Distribution Plan and Agreement dated 04/02/2019 - Filed as Ex-99(m)(1) on 12/27/2023 (Accession No. 0000898745-23-000393)](https://www.sec.gov/Archives/edgar/data/898745/000089874523000393/ex-99m1distribution12bx1cl.htm)</u> |
|  | (2) | <u>[Class C Distribution Plan and Agreement dated 01/01/2014 - Filed as Ex-99(m)(2) on 02/25/2016 (Accession No. 0000898745-16-001024)](https://www.sec.gov/Archives/edgar/data/898745/000089874516001024/m212b-1classc010114.htm)</u> |
|  | (3) | <u>[Class J Amended & Restated Distribution Plan and Agreement dated 03/01/2023 - Filed as Ex-99(m)(3) on 02/27/2023 (Accession No. 0001683863-23-001574)](https://www.sec.gov/Archives/edgar/data/898745/000168386323001574/f24464d12.htm)</u> |
|  | (4) | <u>[Class R-1 Amended & Restated Distribution Plan and Agreement dated 03/01/2023 - Filed as Ex-99(m)(4) on 02/27/2023 (Accession No. 0001683863-23-001574)](https://www.sec.gov/Archives/edgar/data/898745/000168386323001574/f24464d13.htm)</u> |
|  | (5) | <u>[Class R-3 Amended & Restated Distribution Plan and Agreement dated 03/01/2023 - Filed as Ex-99(m)(5) on 02/27/2023 (Accession No. 0001683863-23-001574)](https://www.sec.gov/Archives/edgar/data/898745/000168386323001574/f24464d14.htm)</u> |
|  | (6) | <u>[Class R-4 Amended & Restated Distribution Plan and Agreement dated 03/01/2023 - Filed as Ex-99(m)(6) on 02/27/2023 (Accession No. 0001683863-23-001574)](https://www.sec.gov/Archives/edgar/data/898745/000168386323001574/f24464d15.htm)</u> |
| (n) | Rule 18f-3 Plan | Rule 18f-3 Plan |
|  | (1) | <u>[Plan pursuant to Rule 18f-3(d) under the Investment Company Act of 1940 dated 06/12/2017- Filed as Ex-99(n)(1) on 08/31/2017 (Accession No. 0000898745-17-001102)](https://www.sec.gov/Archives/edgar/data/898745/000089874517001102/ex99n1-18fx3dplan061217.htm)</u> |
| (o) | Reserved | Reserved |
| (p) | Code of Ethics | Code of Ethics |
|  | (1) | <u>[AllianceBernstein L.P. Code of Ethics dated 01/2025](p1codeofethics-allianceber.htm)</u> \* |
|  | (2) | <u>[Barrow Hanley Code of Ethics dated 02/14/2025](p2codeofethics-barrowhanle.htm)</u> \* |
|  | (3) | <u>[BlackRock Code of Ethics dated 12/07/2021 - Filed as Ex-99(p)(3) - on 02/27/2023 (Accession No. 0001683863-23-001574)](https://www.sec.gov/Archives/edgar/data/898745/000168386323001574/f24464d18.htm)</u> |
|  | (4) | <u>[Brown Advisory Code of Ethics dated 2024 - Filed as Ex-99(p)(4) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/brownadvisorycodeofethic.htm)</u> |
|  | (5) | <u>[Causeway Capital Management LLC Code of Ethics dated 12/30/2022 - Filed as Ex-99(p)(5) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/causewaycodeofethics1220.htm)</u> |
|  | (6) | <u>[ClearBridge RARE Infrastructure (North America) Pty Limited Code of Ethics dated 12/2023 - Filed as Ex-99(p)(6) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/clearbridge-codeofethics.htm)</u> |
|  | (7) | <u>[CoreCommodity Management, LLC Code of Ethics dated 10/2023](https://www.sec.gov/Archives/edgar/data/898745/000089874525000100/corecommoditycodeofethics1.htm)[- Filed as Ex-99(](https://www.sec.gov/Archives/edgar/data/898745/000089874525000100/corecommoditycodeofethics1.htm)[p](https://www.sec.gov/Archives/edgar/data/898745/000089874525000100/corecommoditycodeofethics1.htm)[)(](https://www.sec.gov/Archives/edgar/data/898745/000089874525000100/corecommoditycodeofethics1.htm)[7](https://www.sec.gov/Archives/edgar/data/898745/000089874525000100/corecommoditycodeofethics1.htm)[) on 02/26/2025 (Accession No. 0000898745-25-000100)](https://www.sec.gov/Archives/edgar/data/898745/000089874525000100/corecommoditycodeofethics1.htm)</u> |
|  | (8) | <u>[Crabel Capital Management, LLC Code of Ethics dated 02/2024 - Filed as Ex-99(p)(8) on 06/20/2025 (Accession No. 0000898745-25-000315)](https://www.sec.gov/Archives/edgar/data/898745/000089874525000315/crabelcapitalmanagementapp.htm)</u> |
|  | (9) | <u>[Emerald Advisers Inc. Code of Ethics dated 01/02/2025](p9codeofethics-emerald0102.htm)</u> \* |
|  | (10) | <u>[Gotham Asset Management, LLC Code of Ethics dated 01/2024 - Filed as Ex-99(p)(12) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/gotham-codeofethics01202.htm)</u> |
|  | (11) | <u>[Graham Capital Management, L.P. Code of Ethics dated 09/2023 - Filed as Ex-99(p)(13) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/grahamcodeofethicsseptem.htm)</u> |

---

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
| | (12) | <u>[Grantham, Mayo, Van Otterloo & Co. LLC Code of Ethics dated 11/01/2023 - Filed as Ex-99(p)(14) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/gmocodeofethics112023.htm)</u> |
| | (13) | <u>[Hotchkis & Wiley Capital Management, LLC Code of Ethics dated 09/2021 - Filed as Ex-99(p)(13) on 12/28/2021 (Accession No. 0001683863-21-007448)](https://www.sec.gov/Archives/edgar/data/898745/000168386321007448/f10587d19.htm)</u> |
| | (14) | <u>[Loomis, Sayles & Co., L.P. Code of Ethics dated 11/30/2023 - Filed as Ex-99(p)(18) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/loomiscodeofethics112023.htm)</u> |
| | (15) | <u>[Los Angeles Capital Management and Equity Research, Inc. Code of Ethics dated 07/16/2024 - Filed as Ex-99(p)(19) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/losangelescapitalmanagem.htm)</u> |
| | (16) | <u>[Macquarie Capital Investment Management, LLC (Nomura Investments Fund Advisers (formerly, Delaware Investments Fund Advisers) Code of Ethics dated 11/21/2023 - Filed as Ex-99(p)(20) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/difacodeofethics-112023.htm)</u> |
| | (17) | <u>[Newton Investment Management North America LLC Codes of Ethics dated 10/2023 - Filed as Ex-99(p)(21) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/newtoncoe102023.htm)</u> |
| | (18) | <u>[Nuveen Asset Management LLC Code of Ethics dated 01/27/2025](p18codeofethics-nuveen0127.htm)</u> \* |
| | (19) | <u>[Pictet Asset Management SA Code of Ethics dated 03/2024 - Filed as Ex-99(p)(23) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/pictetamcodeofethics-032.htm)</u> |
| | (20) | <u>[PineBridge Investments LLC Code of Ethics dated 01/2025](p20codeofethics-pinebridge.htm)</u> \* |
| | (21) | <u>[Polen Capital Management, LLC Code of Ethics dated 12/2023](p21codeofethics-polen122023.htm)</u> \* |
| | (22) | <u>[Post Advisory Group, LLC Code of Ethics dated 02/2025](p22codeofethics-post022025.htm)</u> \* |
| | (23) | <u>[Record Currency Management Limited Code of Ethics dated 09/2023 - Filed as Ex-99(p)(27) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/ex99p27recordcoe092023.htm)</u> |
| | (24) | <u>[Registrant, Principal Global Investors, LLC, and Principal Real Estate Investors, LLC Code of Ethics dated 11/11/2024](https://www.sec.gov/Archives/edgar/data/898745/000089874525000100/pgicodeofethics111124.htm)[- Filed as Ex-99(](https://www.sec.gov/Archives/edgar/data/898745/000089874525000100/pgicodeofethics111124.htm)[p](https://www.sec.gov/Archives/edgar/data/898745/000089874525000100/pgicodeofethics111124.htm)[)(2](https://www.sec.gov/Archives/edgar/data/898745/000089874525000100/pgicodeofethics111124.htm)[7](https://www.sec.gov/Archives/edgar/data/898745/000089874525000100/pgicodeofethics111124.htm)[) on 02/26/2025 (Accession No. 0000898745-25-000100)](https://www.sec.gov/Archives/edgar/data/898745/000089874525000100/pgicodeofethics111124.htm)</u> |
| | (25) | <u>[Spectrum Code of Ethics dated 2024 - Filed as Ex-99(p)(29) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/spectrumcodeofethicsrece.htm)</u> |
| | (26) | <u>[T. Rowe Price Code of Ethics dated 07/01/2025](p26codeofethics-troweprice.htm)</u> \* |
| | (27) | <u>[Vaughan-Nelson Code of Ethics dated 08/27/2024 - Filed as Ex-99(p)(31) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/vaughannelsoncodeofethic.htm)</u> |
| | (28) | <u>[Victory Capital Management Inc. Code of Ethics dated 04/01/2025](p28codeofethics-victory040.htm)</u> \* |
| | (29) | <u>[Wellington Management Code of Ethics dated 12/01/2023 - Filed as Ex-99(p)(33) on 12/27/2024 (Accession No. 0000898745-24-000725)](https://www.sec.gov/Archives/edgar/data/898745/000089874524000725/wellingtoncodeofethicspo.htm)</u> |
| | (30) | <u>[Westchester Capital Management, LLC Code of Ethics dated 04/01/2023 - Filed as Ex-99(p)(33) on 12/27/2023 (Accession No. 0000898745-23-000393)](https://www.sec.gov/Archives/edgar/data/898745/000089874523000393/ex99p33-codeofethicsxwestc.htm)</u> |
| | (31) | <u>[Westwood Management Corporation Code of Ethics dated 08/07/2025](p31codeofethics-westwood08.htm)</u> \* |
| \* | Filed herein. | Filed herein. |

---

------

**Item 29. Persons Controlled by or Under Common Control with the Fund**

The Registrant does not control and is not under common control with any person.

**Item 30.&nbsp;&nbsp;&nbsp;&nbsp;Indemnification**

Under Section 2-418 of the Maryland General Corporation Law, with respect to any proceedings against a present or former director, officer, agent or employee (a "corporate representative") of the Registrant, the Registrant may indemnify the corporate representative against judgments, fines, penalties, and amounts paid in settlement, and against expenses, including attorneys' fees, if such expenses were actually incurred by the corporate representative in connection with the proceeding, unless it is established that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)The act or omission of the corporate representative was material to the matter giving rise to the proceeding; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Was committed in bad faith; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Was the result of active and deliberate dishonesty; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)The corporate representative actually received an improper personal benefit in money, property, or services; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)In the case of any criminal proceeding, the corporate representative had reasonable cause to believe that the act or omission was unlawful.

If a proceeding is brought by or on behalf of the Registrant, however, the Registrant may not indemnify a corporate representative who has been adjudged to be liable to the Registrant. Under the Registrant's Articles of Incorporation and Bylaws, directors and officers of Registrant are entitled to indemnification by the Registrant to the fullest extent permitted under Maryland law and the Investment Company Act of 1940. Reference is made to Article VI, Section 7 of the Registrant's Articles of Incorporation, Article 9 of Registrant's Bylaws and Section 2-418 of the Maryland General Corporation Law.

The Registrant has agreed to indemnify, defend and hold the Distributors, their officers and directors, and any person who controls the Distributors within the meaning of Section 15 of the Securities Act of 1933, free and harmless from and against any and all claims, demands, liabilities and expenses (including the cost of investigating or defending such claims, demands or liabilities and any counsel fees incurred in connection therewith) which the Distributors, their officers, directors or any such controlling person may incur under the Securities Act of 1933, or under common law or otherwise, arising out of or based upon any untrue statement of a material fact contained in the Registrant's registration statement or prospectus or arising out of or based upon any alleged omission to state a material fact required to be stated in either thereof or necessary to make the statements in either thereof not misleading, except insofar as such claims, demands, liabilities or expenses arise out of or are based upon any such untrue statement or omission made in conformity with information furnished in writing by the Distributors to the Registrant for use in the Registrant's registration statement or prospectus: provided, however, that this indemnity agreement, to the extent that it might require indemnity of any person who is also an officer or director of the Registrant or who controls the Registrant within the meaning of Section 15 of the Securities Act of 1933, shall not inure to the benefit of such officer, director or controlling person unless a court of competent jurisdiction shall determine, or it shall have been determined by controlling precedent that such result would not be against public policy as expressed in the Securities Act of 1933, and further provided, that in no event shall anything contained herein be so construed as to protect the Distributors against any liability to the Registrant or to its security holders to which the Distributors would otherwise be subject by reason of willful misfeasance, bad faith, or gross negligence, in the performance of their duties, or by reason of their reckless disregard of their obligations under this Agreement. The Registrant's agreement to indemnify the Distributors, their officers and directors and any such controlling person as aforesaid is expressly conditioned upon the Registrant being promptly notified of any action brought against the Distributors, their officers or directors, or any such controlling person, such notification to be given by letter or telegram addressed to the Registrant.

Insofar as indemnification for liabilities arising under the Securities Act of 1933 may be permitted to directors, officers and controlling persons of the registrant pursuant to the foregoing provisions, or otherwise, the registrant has been advised that in the opinion of the Securities and Exchange Commission such indemnification is against public policy as expressed in the Act and is, therefore, unenforceable. In the event that a claim for indemnification against such liabilities (other than the payment by the registrant of expenses incurred or paid by a director, officer or controlling person of the registrant in the successful defense of any action, suit or proceeding) is asserted by such director, officer or controlling person in connection with the securities being registered, the registrant will, unless in the opinion of its counsel the matter has been settled by controlling precedent, submit to a court of appropriate jurisdiction the question whether such indemnification by it is against public policy as expressed in the Act and will be governed by the final adjudication of such issue.

Each director has entered into an indemnification agreement with the Fund. In addition, the interested directors each have available indemnifications from Principal Financial Group, Inc., the parent company of his/her employer, the Fund's sponsor.

------

**Item 31. Business or Other Connections of Investment Advisor**

Principal Global Investors, LLC ("PGI") serves as investment advisor and administrator for Principal Funds, Inc. ("PFI"), Principal Variable Contracts Funds, Inc. ("PVC"), Principal Real Asset Fund ("PRA"), and Principal Private Credit Fund ("PPCF"). PGI also serves as investment advisor for Principal Exchange-Traded Funds ("PETF"). PGI is part of a diversified global asset management organization that utilizes specialized investment teams and affiliates to provide institutional investors and individuals with diverse investment capabilities, including fixed income, equities, real estate, and asset allocation. A complete list of the officers and directors of the investment advisor, PGI, are set out below.

PGI is an indirect wholly-owned subsidiary of Principal Financial Group, Inc. (together with its affiliates, "Principal"), the headquarters of which is located at 711 High Street, Des Moines, Iowa. Many of the individuals listed below support Principal in various capacities, in some cases as directors or officers, in addition to their role with PGI. The below list includes individuals (designated by an \*), who serve as officers and directors of the Registrant. For these individuals, the information as set out in the Statement of Additional Information (See Part B) under the caption "Additional Information Regarding Board Members and Officers" is incorporated by reference.

------

---

| | | |
|:---|:---|:---|
| | **NAME** | **OFFICE WITH INVESTMENT ADVISOR (PGI)** |
| | Patricio Abal | Counsel |
| | Christopher K. Agbe-Davies | Vice President, Associate General Counsel, and Assistant Secretary |
| \* | Kamal Bhatia | Director, President, and Chief Executive Officer - Principal Asset Management |
| | Suzanne Cohrs | Managing Director - Public Markets Strategy |
| | Daniel R. Coleman | Chief Investment Officer - Edge Asset Management |
| | Anne R. Cook | Associate General Counsel |
| | Ramona Dessouki | Executive Director and Chief Marketing Officer & Digital Sales |
| \* | George Djurasovic | Vice President - Principal Asset Management General Counsel |
| | Jen Dulski | Counsel |
| | Todd E. Everett | Executive Managing Director and Global Head of Private Markets - Principal Asset Management |
| | Michael J. Goosay | Executive Managing Director and Chief Investment Officer - Global Head of Fixed Income |
| | Melinda L. Hanrahan | Managing Director - Global Equities |
| | Angela Harrison | Counsel |
| | Corrin Hatala | Counsel |
| | Maggie Hibbs | Counsel |
| | Timothy A. Hill | Senior Executive Managing Director - U.S. and Europe Client Group - Principal Asset Management |
| | Jill M. Hittner | Director and Executive Managing Director - Chief Financial Officer - Principal Asset Management |
| | Todd A. Jablonski | Executive Managing Director - Global Head of Multi Asset & Quant, Principal Asset Management |
| | Jaime M. Kiehn | Managing Director - Product Specialist |
| | Chester Knight | Managing Director - Financial Analysis/Planning |
| | Justin T. Lange | Vice President, Chief Compliance Officer - Principal Asset Management |
| \* | Laura B. Latham | Assistant General Counsel |
| | Steve Lempa | Chief Risk Officer - Principal Asset Management |
| | Ming Lodh | Director - Investment Risk Management |
| | George P. Maris | Executive Managing Director - Chief Investment Officer - Global Head of Equities |
| | Kenneth A. McCullum | Director |
| | Adrienne L. McFarland | Associate General Counsel and Secretary |
| | Amy M. McNally | Global Head Risk Management - PGI |
| | Terri Messina | Managing Director - Global Investment Operations |
| \* | David P. Michalik | Counsel |
| | Everett S. Miles | Vice President - Corporate Strategy and Development |
| | Karl (Bill) W. Nolin | Chief Investment Officer - Aligned Investors |
| | Mike Oppold | Senior Director - Accounting and Finance |
| \* | Deanna Y. Pellack | Counsel |
| | Colin D. Pennycooke | Assistant General Counsel |
| | J. Markham Penrod | Chief Compliance Officer - North America |
| | Matt Peron | Managing Director - Deputy Chief Investment Officer - Equities |
| | Darshini Reddivari | Counsel |
| \* | Teri R. Root | Chief Compliance Officer - Funds |
| | Kelly D. Rush | Chief Investment Officer - Global Real Estate Securities |
| | Scott M. Sailer | Vice President - Treasurer and Corporate Chief Financial Officer |
| | Charles M. Schneider | Counsel |
| | Brenda Scholten | Assistant Vice President and Chief Administrative Officer |
| \* | Michael Scholten | Assistant Vice President and Actuary |
| \* | Adam U. Shaikh | Associate General Counsel |
| | Jennifer Shields | Assistant General Counsel |
| \* | John L. Sullivan | Assistant General Counsel |
| | Rob Susman | Managing Director - Global Head of Equities Research |
| \* | Barbara Wenig | Executive Managing Director - Chief Business Officer - Principal Asset Management |
| \* | Brant K. Wong | Executive Managing Director - Head of Retirement Solutions |

---

------

**Item 32.&nbsp;&nbsp;&nbsp;&nbsp;Principal Underwriters**

(a)Principal Funds Distributor, Inc. ("PFD") acts as principal underwriter for PFI, PVC, PRA, and PPCF. PFD also serves as the principal underwriter for certain variable contracts issued by American General Life Insurance Company and The United States Life Insurance Company in the City of New York, through their respective separate accounts.

(b) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

---

| | | |
|:---|:---|:---|
| **(1)** | **(2)** | **(3)** |
| **Name and Principal** | **Positions and Offices with** | **Positions and Offices** |
| **Business Address** | **Principal Underwriter (PFD)** | **with the Registrant** |
| Christopher K. Agbe-Davies | Vice President, Associate General Counsel, |  |
| Principal Funds Distributor, Inc.<sup>(1)</sup> | and Assistant Secretary |  |
| John T. Berg | Director |  |
| The Principal Financial Group <sup>(1)</sup> |  |  |
| Sean Clines | Chief Financial Officer |  |
| Principal Funds Distributor, Inc.<sup>(1)</sup> |  |  |
| Ramona Dessouki | Chief Marketing Officer |  |
| Principal Funds Distributor, Inc.<sup>(2)</sup> |  |  |
| Timothy A. Hill | Director, Senior Vice President - Distribution |  |
| Principal Funds Distributor, Inc.<sup>(1)</sup> | and National Sales Manager |  |
| Dina Hoeske | Senior Director - Fund Shareholder Services |  |
| Principal Funds Distributor, Inc.<sup>(1)</sup> |  |  |
| Michael F. Murray | Director |  |
| Principal Securities, Inc.<sup>(1)</sup> |  |  |
| Brian S. Ness | Senior Vice President and Chief Information Officer |  |
| Principal Funds Distributor, Inc.<sup>(1)</sup> |  |  |
| Michael Scholten | Chief Operations Officer |  |
| Principal Funds Distributor, Inc.<sup>(1)</sup> |  |  |
| Michelle Stockman | Chief Compliance Officer |  |
| Principal Funds Distributor, Inc.<sup>(1)</sup> |  |  |
| Dina Sullivan | Assistant Vice President |  |
| Principal Funds Distributor, Inc. <sup>(3)</sup> |  |  |
| Jeff Trier | AML Compliance Officer |  |
| Principal Funds Distributor, Inc.<sup>(1)</sup> |  |  |
| Brant K. Wong | President and Chair of the Board |  |
| Principal Funds Distributor, Inc. <sup>(2)</sup> |  |  |
| <sup>(1)</sup> Des Moines, IA 50392 | <sup>(1)</sup> Des Moines, IA 50392 |  |
| <sup>(2)</sup> 888 7th Avenue, 25th Floor, New York, NY 10019 | <sup>(2)</sup> 888 7th Avenue, 25th Floor, New York, NY 10019 |  |
| <sup>(3)</sup> 1478 Stone Point Drive, Ste 390, Roseville, CA 95661  | <sup>(3)</sup> 1478 Stone Point Drive, Ste 390, Roseville, CA 95661  |  |

---

(c)&nbsp;&nbsp;&nbsp;&nbsp;Not applicable.

**Item 33.&nbsp;&nbsp;&nbsp;&nbsp;Location of Accounts and Records**

The location of all accounts, books, and other documents required to be maintained by Section 31(a) of the Investment Company Act of 1940, as amended, and the rules promulgated thereunder is provided in the most recent report on Form N-CEN filed by the Registrant.

**Item 34.&nbsp;&nbsp;&nbsp;&nbsp;Management Services**

Not applicable.

**Item 35.&nbsp;&nbsp;&nbsp;&nbsp;Undertakings**

Not applicable.

------

---

| | |
|:---|:---|
| **Exhibit Index:** | |
| Articles Supplementary | Exhibit (a)(2) |
| Amended and Restated Management Agreement | Exhibit (d)(1) |
| ClearBridge Investments (North America) Pty Limited Amended & Restated Sub-Advisory Agreement | Exhibit (d)(5)f |
| Newton Investment Management North America, LLC Amended & Restated Sub-Advisory Agreement | Exhibit (d)(5)q |
| Nomura Investments Fund Advisers Amended & Restated Sub-Advisory Agreement | Exhibit (d)(5)r |
| PineBridge Investments LLC Sub-Advisory Agreement | Exhibit (d)(5)u |
| Custody Agreement Amendment | Exhibit (g)(1)h |
| Contractual Fee Waiver Agreement | Exhibit (h)(9) |
| Legal Opinion | Exhibit (i) |
| Consent of Independent Registered Public Accounting Firm | Exhibit (j)(1) |
| AllianceBernstein L.P. Code of Ethics | Exhibit (p)(1) |
| Barrow Hanley Code of Ethics | Exhibit (p)(2) |
| Emerald Advisers Inc. Code of Ethics | Exhibit (p)(9) |
| Nuveen Asset Management LLC Code of Ethics | Exhibit (p)(18) |
| PineBridge Investments LLC Code of Ethics | Exhibit (p)(20) |
| Polen Capital Management, LLC Code of Ethics | Exhibit (p)(21) |
| Post Advisory Group, LLC Code of Ethics | Exhibit (p)(22) |
| T. Rowe Price Code of Ethics | Exhibit (p)(26) |
| Victory Capital Management Inc. Code of Ethics | Exhibit (p)(28) |
| Westwood Management Corporation Code of Ethics | Exhibit (p)(31) |

---

------

---

| |
|:---|
| **SIGNATURES** |
| Pursuant to the requirements of the Securities Act of 1933 and the Investment Company Act of 1940, the Fund certifies that it meets all of the requirements for effectiveness of this registration statement under rule 485(b) under the Securities Act and has duly caused this registration statement to be signed on its behalf by the undersigned, duly authorized, in the city of Des Moines and State of Iowa, on the 27th day of February, 2026. |
| Principal Funds, Inc. |
| (Registrant) |
| <br>/s/ Kamal Bhatia<br>_____________________________________<br>Kamal Bhatia<br>Director, President, and Chief Executive Officer |

---

------

---

| | | |
|:---|:---|:---|
| Pursuant to the requirements of the Securities Act of 1933, this Amendment to the Registration Statement has been signed below by the following persons in the capacities and on the dates indicated. | Pursuant to the requirements of the Securities Act of 1933, this Amendment to the Registration Statement has been signed below by the following persons in the capacities and on the dates indicated. | Pursuant to the requirements of the Securities Act of 1933, this Amendment to the Registration Statement has been signed below by the following persons in the capacities and on the dates indicated. |
| **Signature** | **Title** | **Date** |
| /s/ Kamal Bhatia<br>__________________________<br>Kamal Bhatia | Director, President, and Chief Executive Officer <br>(Principal Executive Officer) | February 27, 2026 |
| /s/ Michael Scholten<br>__________________________<br>Michael Scholten | Chief Financial Officer<br>(Principal Financial Officer) | February 27, 2026 |
| /s/ Megan Hoffmann<br>__________________________<br>Megan Hoffmann | Vice President and Treasurer<br>(Principal Accounting Officer) | February 27, 2026 |
| (Craig Damos)\* <br>__________________________<br>Craig Damos | Director | February 27, 2026 |
| (Katharin S. Dyer)\* <br>__________________________<br>Katharin S. Dyer  | Director | February 27, 2026 |
| (Frances P. Grieb)\* <br>__________________________<br>Frances P. Grieb | Director | February 27, 2026 |
| (Victor L. Hymes)\* <br>__________________________<br>Victor L. Hymes | Director | February 27, 2026 |
| (Sharmila C. Kassam)\*<br>__________________________<br>Sharmila C. Kassam | Director | February 27, 2026 |
| (Padelford L. Lattimer)\*<br>__________________________<br>Padelford L. Lattimer | Director | February 27, 2026 |
| (Kenneth A. McCullum)\*<br>__________________________<br>Kenneth A. McCullum | Director | February 27, 2026 |
| (Karen McMillan)\*<br>__________________________<br>Karen McMillan | Director | February 27, 2026 |
| (Thomas A. Swank)\* <br>__________________________<br>Thomas A. Swank | Director | February 27, 2026 |
|  | /s/ Kamal Bhatia<br>_____________________________________ <br>Kamal Bhatia<br>Attorney-In-Fact | February 27, 2026 |
| \* Pursuant to Powers of Attorney | \* Pursuant to Powers of Attorney | \* Pursuant to Powers of Attorney |

---

## Ex-99.(A)(2)

**ARTICLES SUPPLEMENTARY**

**OF**

**PRINCIPAL FUNDS, INC.**

Principal Funds, Inc., a Maryland corporation having its principal office in this State in Baltimore, Maryland (the "Corporation"), hereby certifies to the State Department of Assessments and Taxation of Maryland that:

FIRST: On December 9, 2025, pursuant to authority granted to it in the Charter of the Corporation, resolutions were approved by the Board of Directors of the Corporation, in accordance with Sections 2-105(a)(10), 2-105(c), and 2-605 of Maryland General Corporation Law, to add the following series to the Corporation and to reclassify an aggregate of two hundred million (200,000,000) shares, representing authorized but unclassified shares, and to designate such as Class R-6 shares of the following series of the Corporation:

---

| | | |
|:---|:---|:---|
| **Series** | **Class** | **Aggregate Shares Reclassified** |
| International Bond Fund | R-6 | 200,000,000 |

---

SECOND: On December 10, 2025, pursuant to authority granted to it in the Charter of the Corporation, resolutions were approved by the Board of Directors of the Corporation, in accordance with Sections 2-105(a)(10), 2-105(c), and 2-605 of Maryland General Corporation Law, authorizing a reclassification of an aggregate of five hundred million (500,000,000) shares, representing authorized but unclassified shares, and to designate such as Class R-6 shares of the International Equity Fund, a series of the Corporation.

The total number of authorized shares of stock of the Corporation will remain at ninety-nine billion six hundred five million (99,605,000,000) shares of stock, with a par value of one cent ($0.01) per share. The aggregate par value of all the authorized shares will remain at nine hundred ninety-six million fifty thousand dollars ($996,050,000).

As amended, Article V shall be stricken in its entirety and replaced by the following:

**ARTICLE V**

**Capital Stock Allocation**

**Section 5.1. Authorized Shares**: The total number of shares of stock which the Corporation shall have authority to issue is ninety-nine billion six hundred five million (99,605,000,000) shares of stock, with a par value of one cent ($0.01) per share. The aggregate par value of all the authorized shares is nine hundred ninety-six million fifty thousand dollars ($996,050,000). The shares may be issued by the Board of Directors in such separate and distinct series and classes of series as the Board of Directors shall from time to time create and establish. The Board of Directors shall have full power and authority, in its sole discretion, to establish and designate series and classes of series, and to classify or reclassify any unissued shares in separate series or classes having such preferences, conversion or other rights, voting powers, restrictions, limitations as to dividends, qualifications, and terms and conditions of redemption as shall be fixed and determined from time to time by the Board of Directors. Unless otherwise provided in these Articles of Incorporation or by the Board of Directors when establishing a class, each class of a series shall represent interests in the assets belonging to that series and have identical voting, dividend, liquidation and other rights and the same terms and conditions as any other class of the series, except that expenses allocated to the class of a series may be borne solely by such class as shall be determined by the Board of Directors. Expenses related to the distribution of, and other identified expenses that should properly be allocated to, the shares of a particular series or class may be charged to and borne solely by such series or class, and the bearing of expenses solely by a series or class may be appropriately reflected (in a manner determined by the Board of Directors) and cause differences in the net asset value attributable to, and the dividend, redemption and liquidation rights of, the shares of each series or class. Subject to the authority of the Board of Directors to increase and decrease the number of, and to reclassify the shares of any series or class, there are hereby established seventy-four series of common stock, each comprising the number of shares and having the share class designations indicated:

------

---

| | | |
|:---|:---|:---|
| **Fund** | **Class** | **Number of Shares** |
| Blue Chip Fund | A | 50000000 |
|  | C | 50000000 |
|  | Institutional | 500000000 |
|  | J | 100000000 |
|  | R-3 | 100000000 |
|  | R-5 | 200000000 |
|  | R-6 | 300000000 |
| Bond Market Index Fund | Institutional | 500000000 |
|  | J | 10000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
| California Municipal Fund | A | 300000000 |
|  | C | 50000000 |
|  | Institutional | 100000000 |
| Capital Securities Fund | S | 500000000 |
| Core Fixed Income Fund | A | 350000000 |
|  | Institutional | 300000000 |
|  | J | 100000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
|  | R-6 | 1600000000 |
| Core Plus Bond Fund | A | 200000000 |
|  | Institutional | 500000000 |
|  | J | 75000000 |
|  | R-3 | 150000000 |
|  | R-5 | 60000000 |
| Diversified Income Fund | A | 750000000 |
|  | C | 300000000 |
|  | Institutional | 700000000 |
|  | R-6 | 400000000 |
| Diversified International Fund | A | 350000000 |
|  | Institutional | 1200000000 |
|  | J | 75000000 |
|  | R-3 | 250000000 |
|  | R-5 | 100000000 |
|  | R-6 | 1900000000 |
| Diversified Real Asset Fund | A | 800000000 |
|  | Institutional | 500000000 |
|  | R-3 | 100000000 |
|  | R-6 | 375000000 |
| Equity Income Fund  | A | 750000000 |
|  | C | 50000000 |
|  | Institutional | 500000000 |
|  | J | 100000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
| Finisterre Emerging Markets Total Return Bond Fund | Institutional | 100000000 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund** | **Class** | **Number of Shares** |
| Global Emerging Markets Fund | A | 250000000 |
|  | Institutional | 300000000 |
|  | J | 25000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
|  | R-6 | 250000000 |
| Global Listed Infrastructure Fund | Institutional | 200000000 |
| Global Macro Fund | R-6 | 200000000 |
| Global Multi-Strategy Fund | A | 850000000 |
|  | Institutional | 500000000 |
|  | R-6 | 400000000 |
| Global Real Estate Securities Fund | A | 300000000 |
|  | Institutional | 500000000 |
|  | R-3 | 250000000 |
|  | R-5 | 200000000 |
|  | R-6 | 250000000 |
| Government & High Quality Bond Fund | A | 350000000 |
|  | Institutional | 400000000 |
|  | J | 75000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
| Government Money Market Fund | Institutional | 10200000000 |
|  | R-6 | 10200000000 |
| High Yield Fund | A | 750000000 |
|  | C | 200000000 |
|  | Institutional | 1200000000 |
|  | R-6 | 1000000000 |
| Inflation Protection Fund | Institutional | 400000000 |
|  | J | 25000000 |
|  | R-3 | 300000000 |
|  | R-5 | 125000000 |
| International Bond Fund | R-6 | 200000000 |
| International Equity Fund | Institutional | 300000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
|  | R-6 | 600000000 |
| International Equity Index Fund | Institutional | 200000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
|  | R-6 | 750000000 |
| International Small Company Fund | Institutional | 100000000 |
|  | R-6 | 200000000 |
| LargeCap Growth Fund I | A | 100000000 |
|  | Institutional | 600000000 |
|  | J | 50000000 |
|  | R-3 | 145000000 |
|  | R-5 | 150000000 |
|  | R-6 | 850000000 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund** | **Class** | **Number of Shares** |
| LargeCap S&P 500 Index Fund | A | 250000000 |
|  | Institutional | 500000000 |
|  | J | 100000000 |
|  | R-3 | 175000000 |
|  | R-5 | 125000000 |
| LargeCap Value Fund III | Institutional | 300000000 |
|  | J | 25000000 |
|  | R-3 | 145000000 |
|  | R-5 | 50000000 |
| MidCap Fund | A | 850000000 |
|  | C | 50000000 |
|  | Institutional | 1350000000 |
|  | J | 100000000 |
|  | R-3 | 450000000 |
|  | R-5 | 155000000 |
|  | R-6 | 400000000 |
| MidCap S&P 400 Index Fund | Institutional | 200000000 |
|  | J | 25000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
|  | R-6 | 100000000 |
| MidCap Value Fund I | A | 100000000 |
|  | Institutional | 300000000 |
|  | J | 25000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
|  | R-6 | 300000000 |
| Money Market Fund | A | 5000000000 |
|  | J | 1200000000 |
| Opportunistic Municipal Fund | A | 200000000 |
|  | Institutional | 100000000 |
| Overseas Fund | Institutional | 575000000 |
|  | R-3 | 150000000 |
| Principal Capital Appreciation | A | 350000000 |
|  | Institutional | 300000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
| Principal LifeTime 2015 Fund | Institutional | 200000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
| Principal LifeTime Hybrid 2015 Fund | Institutional | 200000000 |
|  | J | 100000000 |
|  | R-6 | 300000000 |
| Principal LifeTime 2020 Fund | A | 200000000 |
|  | Institutional | 500000000 |
|  | J | 150000000 |
|  | R-3 | 175000000 |
|  | R-5 | 125000000 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund** | **Class** | **Number of Shares** |
| Principal LifeTime Hybrid 2020 Fund | Institutional | 200000000 |
|  | J | 100000000 |
|  | R-6 | 300000000 |
| Principal LifeTime 2025 Fund | Institutional | 225000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
| Principal LifeTime Hybrid 2025 Fund | Institutional | 200000000 |
|  | J | 100000000 |
|  | R-6 | 300000000 |
| Principal LifeTime 2030 Fund | A | 200000000 |
|  | Institutional | 525000000 |
|  | J | 300000000 |
|  | R-3 | 275000000 |
|  | R-5 | 125000000 |
| Principal LifeTime Hybrid 2030 Fund | Institutional | 200000000 |
|  | J | 100000000 |
|  | R-6 | 300000000 |
| Principal LifeTime 2035 Fund | Institutional | 200000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
| Principal LifeTime Hybrid 2035 Fund | Institutional | 200000000 |
|  | J | 100000000 |
|  | R-6 | 300000000 |
| Principal LifeTime 2040 Fund | A | 200000000 |
|  | Institutional | 500000000 |
|  | J | 100000000 |
|  | R-3 | 150000000 |
|  | R-5 | 75000000 |
| Principal LifeTime Hybrid 2040 Fund | Institutional | 200000000 |
|  | J | 100000000 |
|  | R-6 | 300000000 |
| Principal LifeTime 2045 Fund | Institutional | 200000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
| Principal LifeTime Hybrid 2045 Fund | Institutional | 200000000 |
|  | J | 100000000 |
|  | R-6 | 300000000 |
| Principal LifeTime 2050 Fund | A | 200000000 |
|  | Institutional | 300000000 |
|  | J | 100000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
| Principal LifeTime Hybrid 2050 Fund | Institutional | 200000000 |
|  | J | 100000000 |
|  | R-6 | 300000000 |
| Principal LifeTime 2055 Fund | Institutional | 200000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund** | **Class** | **Number of Shares** |
| Principal LifeTime Hybrid 2055 Fund | Institutional | 200000000 |
|  | J | 100000000 |
|  | R-6 | 300000000 |
| Principal LifeTime 2060 Fund | Institutional | 200000000 |
|  | J | 100000000 |
|  | R-3 | 75000000 |
|  | R-5 | 50000000 |
| Principal LifeTime Hybrid 2060 Fund | Institutional | 200000000 |
|  | J | 100000000 |
|  | R-6 | 300000000 |
| Principal LifeTime 2065 Fund | Institutional | 200000000 |
|  | R-3 | 75000000 |
|  | R-5 | 50000000 |
| Principal LifeTime Hybrid 2065 Fund | Institutional | 200000000 |
|  | J | 100000000 |
|  | R-6 | 225000000 |
| Principal LifeTime 2070 Fund | Institutional | 200000000 |
|  | J | 25000000 |
|  | R-3 | 50000000 |
|  | R-5 | 50000000 |
| Principal LifeTime Hybrid 2070 Fund | Institutional | 200000000 |
|  | J | 25000000 |
|  | R-6 | 25000000 |
| Principal LifeTime Hybrid Income Fund | Institutional | 200000000 |
|  | J | 100000000 |
|  | R-6 | 300000000 |
| Principal LifeTime Strategic Income Fund | A | 200000000 |
|  | Institutional | 300000000 |
|  | J | 100000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
| Real Estate Securities Fund | A | 300000000 |
|  | C | 50000000 |
|  | Institutional | 200000000 |
|  | J | 25000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
|  | R-6 | 150000000 |
| Short-Term Income Fund | A | 300000000 |
|  | C | 50000000 |
|  | Institutional | 800000000 |
|  | J | 25000000 |
|  | R-3 | 15000000 |
|  | R-5 | 30000000 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund** | **Class** | **Number of Shares** |
| SmallCap Fund | A | 250000000 |
|  | Institutional | 100000000 |
|  | J | 50000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
|  | R-6 | 100000000 |
| Small-MidCap Dividend Income Fund | A | 750000000 |
|  | C | 100000000 |
|  | Institutional | 750000000 |
|  | R-6 | 100000000 |
| SmallCap Growth Fund I | Institutional | 400000000 |
|  | J | 25000000 |
|  | R-3 | 145000000 |
|  | R-5 | 50000000 |
|  | R-6 | 250000000 |
| SmallCap S&P 600 Index Fund | Institutional | 100000000 |
|  | J | 25000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
|  | R-6 | 100000000 |
| SmallCap Value Fund II | Institutional | 300000000 |
|  | J | 25000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
|  | R-6 | 175000000 |
| Spectrum Preferred and Capital Securities Income Fund | A | 750000000 |
|  | C | 300000000 |
|  | Institutional | 800000000 |
|  | J | 150000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
|  | R-6 | 300000000 |
| Strategic Asset Management Balanced Portfolio | A | 750000000 |
|  | C | 150000000 |
|  | Institutional | 500000000 |
|  | J | 175000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
| Strategic Asset Management Conservative Balanced Portfolio | A | 750000000 |
|  | C | 50000000 |
|  | Institutional | 500000000 |
|  | J | 200000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |

---

------

---

| | | |
|:---|:---|:---|
| **Fund** | **Class** | **Number of Shares** |
| Strategic Asset Management Conservative Growth Portfolio | A | 750000000 |
|  | C | 150000000 |
|  | Institutional | 500000000 |
|  | J | 75000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
| Strategic Asset Management Flexible Income Portfolio | A | 750000000 |
|  | C | 50000000 |
|  | Institutional | 500000000 |
|  | J | 200000000 |
|  | R-3 | 150000000 |
|  | R-5 | 50000000 |
| Strategic Asset Management Strategic Growth Portfolio | A | 750000000 |
|  | C | 150000000 |
|  | Institutional | 300000000 |
|  | J | 75000000 |
|  | R-3 | 550000000 |
|  | R-5 | 50000000 |
| Tax-Exempt Bond Fund | A | 300000000 |
|  | C | 50000000 |
|  | Institutional | 100000000 |

---

A total of four hundred twenty-five million (425,000,000) shares remain authorized but unclassified shares.

In addition, the Board of Directors is hereby expressly granted authority to change the designation of any series or class, to increase or decrease the number of shares of any series or class, provided that the number of authorized shares of any series or class shall not be decreased by the Board of Directors below the number of shares thereof then outstanding, and to reclassify any unissued shares into one or more series or classes that may be established and designated from time to time.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)The Corporation may issue shares of stock in fractional denominations to the same extent as its whole shares, and shares in fractional denominations shall be shares of stock having proportionately, to the respective fractions represented thereby, all the rights of whole shares, including without limitation, the right to vote, the right to receive dividends and distributions and the right to participate upon liquidation of the Corporation, but excluding the right to receive a stock certificate representing fractional shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)The holder of each share of stock of the Corporation shall be entitled to one vote for each full share, and a fractional vote for each fractional share, of stock, irrespective of the series or class, then standing in the holder's name on the books of the Corporation. On any matter submitted to a vote of stockholders, all shares of the Corporation then issued and outstanding and entitled to vote shall be voted in the aggregate and not by series or class except that (1) when otherwise expressly required by the Maryland General Corporation Law or the Investment Company Act of 1940, shares shall be voted by individual series or class, and (2) if the Board of Directors, in its sole discretion, determines that a matter (including an amendment to these Articles of Incorporation) affects the interests of only one or more particular series or class or classes then only the holders of shares of such affected series or class or classes shall be entitled to vote thereon.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Unless otherwise provided in the resolution of the Board of Directors providing for the establishment and designation of any new series or class or classes, each series and class of stock of the Corporation shall have the following powers, preferences and rights, and qualifications, restrictions, and limitations thereof:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Assets Belonging to a Series. All consideration received by the Corporation for the issue or sale of shares of a particular series, together with all assets in which such consideration is invested or reinvested, all income, earnings, profits and proceeds thereof, including any proceeds derived from the sale, exchange or liquidation of such assets, and any funds or payments derived from any reinvestment of such proceeds in whatever form the same may be, shall irrevocably belong to that series for all purposes, subject only to the rights of creditors, and shall be so recorded upon the books and accounts of the Corporation. Such consideration, assets, income, earnings, profits and proceeds thereof, including any proceeds derived from the sale, exchange or liquidation of such assets, and any funds or payments derived from any reinvestment of such proceeds, in whatever form the same may be, together with any General Items allocated to that series as provided in the following sentence, are herein referred to as "assets belonging to" that series. In the event that there are any assets, income, earnings, profits, proceeds thereof, funds or payments which are not readily identifiable as belonging to any particular series (collectively "General Items"), such General Items shall be allocated by or under the supervision of the Board of Directors to and among any one or more of the series established and designated from time to time in such manner and on such basis as the Board of Directors, in its sole discretion, deems fair and equitable, and any General Items so allocated to a particular series shall belong to that series. Each such allocation by the Board of Directors shall be conclusive and binding for all purposes. The foregoing provisions of this Section 5.1(c)(1) shall apply to each class to the extent provided by the Board of Directors and consistent with applicable laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Liabilities Belonging to a Series. The assets belonging to each particular series shall be charged with the liabilities of the Corporation in respect of that series and all expenses, costs, charges and reserves attributable to that series, and any general liabilities, expenses, costs, charges or reserves of the Corporation which are not readily identifiable as belonging to any particular series shall be allocated and charged by or under the supervision of the Board of Directors to and among any one or more of the series established and designated from time to time in such manner and on such basis as the Board of Directors, in its sole discretion, deems fair and equitable. The liabilities, expenses, costs, charges and reserves allocated and so charged to a series are herein referred to as "liabilities belonging to" that series. Expenses related to the shares of a series may be borne solely by that series (as determined by the Board of Directors). Each allocation of liabilities, expenses, costs, charges and reserves by the Board of Directors shall be conclusive and binding for all purposes. The foregoing provisions of this Section 5.1(c)(2) shall apply to each class to the extent provided by the Board of Directors and consistent with applicable laws and regulations.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Dividends and Distributions. The Board of Directors may from time to time declare and pay dividends or distributions, in stock, property or cash, on any or all series of stock, the amount of such dividends and property distributions and the payment of them being wholly in the discretion of the Board of Directors. Dividends may be declared daily or otherwise pursuant to a standing resolution or resolutions adopted only once or with such frequency as the Board of Directors may determine, after providing for actual and accrued liabilities belonging to that series. All dividends or distributions on shares of a particular series shall be paid only out of surplus or other lawfully available assets determined by the Board of Directors as belonging to such series. Dividends and distributions may vary between the classes of a series to reflect differing allocations of the expense of each class of that series to such extent and for such purposes as the Board of Directors may deem appropriate. The Board of Directors shall have the power, in its sole discretion, to distribute in any fiscal year as dividends, including dividends designated in whole or in part as capital gains distributions, amounts sufficient, in the opinion of the Board of Directors, to enable the Corporation, or where applicable each series of shares to qualify as a regulated investment company under the Internal Revenue Code of 1986, as amended, or any successor or comparable statute thereto, and regulations promulgated thereunder, and to avoid liability for the Corporation, or each series of shares, for Federal income and excise taxes in respect of that or any other year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)Liquidation. In the event of the liquidation of the Corporation or of the assets attributable to a particular series or class, the stockholders of each series or class that has been established and designated and is being liquidated shall be entitled to receive, as a series or class, when and as declared by the Board of Directors, the excess of the assets belonging to that series or class over the liabilities belonging to that series or class. The holders of shares of any series or class shall not be entitled thereby to any distribution upon liquidation of any other series or class. The assets so distributable to the stockholders of any particular series or class shall be distributed among such stockholders according to their respective rights taking into account the proper allocation of expenses being borne by that series or class. The liquidation of assets attributable to any particular series or class in which there are shares then outstanding and the termination of the series or the class may be authorized by vote of a majority of the Board of Directors then in office, without action or approval of the stockholders, to the extent consistent with applicable laws and regulations. In the event that there are any general assets not belonging to any particular series or class of stock and available for distribution, such distribution shall be made to holders of stock of various series or classes in such proportion as the Board of Directors determines to be fair and equitable, and such determination by the Board of Directors shall be conclusive and binding for all purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)Redemption. All shares of stock of the Corporation shall be subject to the redemption, repurchase and conversion provisions set forth in Sections 5.6 through 5.11 of this Article V.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d)The Corporation's shares of stock are issued and sold, and all persons who shall acquire stock of the Corporation shall do so, subject to the condition and understanding that the provisions of the Corporation's Articles of Incorporation, as from time to time amended, shall be binding upon them.

**Section 5.2. Quorum Requirements and Voting Rights**: Except as otherwise expressly provided by the Maryland General Corporation Law, the presence in person or by proxy of the holders of one-third of the shares of capital stock of the Corporation outstanding and entitled to vote thereat shall constitute a quorum at any meeting of the stockholders, except that where the holders of any series or class are required or permitted to vote as a series or class, one-third of the aggregate number of shares of that series or class outstanding and entitled to vote shall constitute a quorum.

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Notwithstanding any provision of Maryland General Corporation Law requiring a greater proportion than a majority of the votes of all series or classes or of any series or class of the Corporation's stock entitled to be cast in order to take or authorize any action, any such action may be taken or authorized upon the concurrence of a majority of the aggregate number of votes entitled to be cast thereon subject to applicable laws and regulations. All shares of stock of this Corporation shall have the voting rights provided for in Section 5.1(b) of this Article V.

The Board of Directors from time to time, subject to such procedures as may be adopted by the Board of Directors, and consistent with applicable laws and regulations, may authorize the holders of shares of any series or class to take action or consent to any action by delivering a consent, in writing or by electronic transmission, of the holders entitled to cast not less than the minimum number of votes that would be necessary to authorize or take the action at a meeting of the holders of shares of such series or class.

**Section 5.3. No Preemptive or Appraisal Rights**: No holder of shares of capital stock of the Corporation shall, as such holder, have any right to purchase or subscribe for any shares of the capital stock of the Corporation which the Corporation may issue or sell (whether consisting of shares of capital stock authorized by these Articles of Incorporation, or shares of capital stock of the Corporation acquired by it after the issue thereof, or other shares) other than any right which the Board of Directors of the Corporation, in its discretion, may determine.

No holder of shares of capital stock of the Corporation shall be entitled to exercise the rights of an objecting stockholder under Subtitle 2 of Title 3 of the Maryland General Corporation Law or any successor provision.

**Section 5.4. Determination of Net Asset Value**: The net asset value of each share of each series or class of each series of the Corporation shall be the quotient obtained by dividing the value of the net assets of the Corporation, or if applicable of the series or class (being the value of the assets of the Corporation or of the particular series or class or attributable to the particular series or class less its actual and accrued liabilities exclusive of capital stock and surplus), by the total number of outstanding shares of the Corporation or the series or class, as applicable. Such determination may be made on a series-by-series basis or made or adjusted on a class-by-class basis, as appropriate, and shall include any expenses allocated to a specific series or class thereof. The Board of Directors may adopt procedures for determination of net asset value consistent with the requirements of applicable laws and regulations and, so far as accounting matters are concerned, with generally accepted accounting principles. The procedures may include, without limitation, procedures for valuation of the Corporation's portfolio securities and other assets, for accrual of expenses or creation of reserves and for the determination of the number of shares issued and outstanding at any given time.

**Section 5.5. Stable Net Asset Value**: With respect to any money market, stable value or other series or class that seeks to maintain a stable net asset value per share, and pursuant to procedures established by the Board of Directors, the Corporation shall be entitled, without the payment of monetary compensation but in consideration of the interest of the Corporation and its stockholders in maintaining a stable net asset value per share of such series or class, to redeem pro rata from all holders of record of such series or class at the time of such redemption (in proportion to their respective holdings of such shares) sufficient outstanding shares (or fractional shares) of such series or class, or to take such other measures as are not prohibited by the Investment Company Act of 1940, as shall maintain for such series or class a stable net asset value.

**Section 5.6. Redemption by Stockholders**: Any stockholder may redeem shares of the Corporation for the net asset value of each series or class thereof, less such fees and charges, if any, as may be established by the Board of Directors from time to time, by presentation of an appropriate request, together with the certificates, if any, for such shares, duly endorsed, at the office or agency designated by the Corporation. Redemptions as aforesaid, shall be made in the manner and subject to the conditions contained in the bylaws or approved by the Board of Directors.

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**Section 5.7. Redemption at the Option of the Corporation**: Subject to the provisions of the Investment Company Act of 1940, each share of the Corporation and each share of each series and class shall be redeemable from any stockholder at the option of the Corporation. In that regard, the Board of Directors may from time to time authorize the Corporation to redeem all or any part of the shares of the Corporation or of any series or class upon such terms and conditions as the Board of Directors may determine in its sole discretion. The Corporation's right to redeem shares includes, without limitation, the right to redeem shares when required for the payment of account fees or other fees, charges and expenses as set by the Board of Directors, including without limitation any small account fees permitted by Section 5.9 of this Article V.

**Section 5.8. Purchase of Shares**: The Corporation shall be entitled to purchase all or any part of the shares of the Corporation or of any series or class of its capital stock, to the extent that the Corporation may lawfully effect such purchase under Maryland General Corporation Law, upon such terms and conditions and for such consideration as the Board of Directors shall deem advisable.

**Section 5.9. Redemption of Minimum Amounts**: The Board of Directors may establish, from time to time, one or more minimum investment amounts for stockholder accounts, which may be different for each series or class and within each series or class, and may impose account fees on, and/or require the involuntary redemption of, those accounts the net asset value of which for any reason falls below such established minimum amounts, or may take any other action with respect to minimum investment amounts as may be deemed appropriate by the Board of Directors, in each case upon such terms as shall be established by the Board of Directors. Any such account fee may be satisfied by the Corporation by redeeming the requisite number of shares in any such account in the amount of such fee.

**Section 5.10. Conversion of Shares by Stockholders and by the Corporation:** Subject to compliance with the Investment Company Act of 1940 and applicable laws and regulations, the Board of Directors shall have authority, without stockholder approval, to provide that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the holders of any series or class of shares shall have the right to convert or exchange such shares into shares of one or more other series or classes in accordance with such terms and conditions as may be established by the Board of Directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)the Corporation may automatically convert some or all of the shares of a particular series or class into shares of another series or class, at such times as may be determined by the Board of Directors, based on the relative net asset values of such series or class at time of conversion and otherwise in accordance with such terms and conditions as may be established by the Board of Directors and which may vary within and among the series and classes and within and among the holders of the series or classes to the extent determined by the Board of Directors.

**Section 5.11. Mode of Payment**: Payment by the Corporation for shares of any series or class of the capital stock of the Corporation surrendered to it for redemption shall be made by the Corporation within seven days of such surrender out of the funds legally available therefor, provided that the Corporation may suspend the right of the holders of capital stock of the Corporation to redeem shares of capital stock and may postpone the right of such holders to receive payment for any shares when permitted or required to do so by law. Payment of the redemption or purchase price may be made in cash or, at the option of the Corporation, wholly or partly in such portfolio securities or other assets of the Corporation as the Corporation may select in its sole discretion. The composition of any such payments may be different among stockholders, including those of the same series or class, as the Corporation may determine in its sole discretion.

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**Section 5.12. Rights of Holders of Shares Purchased or Redeemed**: The right of any holder of any series or class of capital stock of the Corporation purchased or redeemed by the Corporation as provided in this Article V to receive dividends thereon and all other rights of such holder with respect to such shares shall terminate at the time as of which the purchase or redemption price of such shares is determined, except the right of such holder to receive (i) the purchase or redemption price of such shares from the Corporation or its designated agent and (ii) any dividend or distribution or voting rights to which such holder has previously become entitled as the record holder of such shares on the record date for the determination of the stockholders entitled to receive such dividend or distribution or to vote at the meeting of stockholders.

**Section 5.13. Status of Shares Purchased or Redeemed**: In the absence of any specification as to the purpose for which such shares of any series or class of capital stock of the Corporation are redeemed or purchased by it, all shares so redeemed or purchased shall be deemed to be retired in the sense contemplated by the laws of the State of Maryland and may be reissued. The number of authorized shares of capital stock of the Corporation shall not be reduced by the number of any shares redeemed or purchased by it.

**Section 5.14. Additional Limitations and Powers**: The following provisions are inserted for the purpose of defining, limiting and regulating the powers of the Corporation and of the Board of Directors and stockholders:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Any determination made in good faith and, so far as accounting matters are involved, in accordance with generally accepted accounting principles by or pursuant to the direction of the Board of Directors, as to the amount of the assets, debts, obligations or liabilities of the Corporation, as to the amount of any reserves or charges set up and the propriety thereof, as to the time of or purpose for creating such reserves or charges, as to the use, alteration or cancellation of any reserves or charges (whether or not any debt, obligation or liability for which such reserves or charges shall have been created shall have been paid or discharged or shall be then or thereafter required to be paid or discharged), as to the establishment or designation of procedures or methods to be employed for valuing any investment or other assets of the Corporation and as to the value of any investment or other asset, as to the allocation of any asset of the Corporation to a particular series or class or classes of the Corporation's stock, as to the funds available for the declaration of dividends and as to the declaration of dividends, as to the charging of any liability of the Corporation to a particular series or class or classes of the Corporation's stock, as to the number of shares of any series or class or classes of the Corporation's outstanding stock, as to the estimated expense to the Corporation in connection with purchases or redemptions of its shares, as to the ability to liquidate investments in orderly fashion, or as to any other matters relating to the issue, sale, purchase or redemption or other acquisition or disposition of investments or shares of the Corporation, or in the determination of the net asset value per share of shares of any series or class of the Corporation's stock shall be conclusive and binding for all purposes.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Except to the extent prohibited by the Investment Company Act of 1940, or rules, regulations or orders thereunder promulgated by the Securities and Exchange Commission or any successor thereto or by the bylaws of the Corporation, a director, officer or employee of the Corporation shall not be disqualified by his position from dealing or contracting with the Corporation, nor shall any transaction or contract of the Corporation be void or voidable by reason of the fact that any director, officer or employee or any firm of which any director, officer or employee is a member, or any corporation of which any director, officer or employee is a stockholder, officer or director, is in any way interested in such transaction or contract; provided that in case a director, or a firm or corporation of which a director is a member, stockholder, officer or director is so interested, such fact shall be disclosed to or shall have been known by the Board of Directors or a majority thereof. Nor shall any director or officer of the Corporation be liable to the Corporation or to any stockholder or creditor thereof or to any person for any loss incurred by it or him or for any profit realized by such director or officer under or by reason of such contract or transaction; provided that nothing herein shall protect any director or officer of the Corporation against any liability to the Corporation or to its security holders to which he would otherwise be subject by reason of willful misfeasance, bad faith, gross negligence or reckless disregard of the duties involved in the conduct of his office; and provided always that such contract or transaction shall have been on terms that were unfair to the Corporation at the time at which it was entered into. Any director of the Corporation who is so interested, or who is a member, stockholder, officer or director of such firm or corporation, may be counted in determining the existence of a quorum at any meeting of the Board of Directors of the Corporation which shall authorize any such transaction or contract, with like force and effect as if he were not such director, or member, stockholder, officer or director of such firm or corporation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Specifically and without limitation of the foregoing paragraph (b) but subject to the exception therein prescribed, the Corporation may enter into management or advisory, underwriting, distribution and administration contracts, custodian contracts and such other contracts as may be appropriate.

**Section 5.15. Reorganization**: The Board of Directors may merge or consolidate one of more series of shares with, and may sell, convey and transfer the assets belonging to any one or more series of shares to, another corporation, trust, partnership, association or other organization, or to the Corporation to be held as assets belonging to another series of shares, in exchange for cash, securities or other consideration (including, in the case of a transfer to another series of shares of the Corporation, shares of such other series of shares) with such transfer being made subject to, or with the assumption by the transferee of, the liabilities belonging to each transferor series of shares if deemed appropriate by the Board of Directors. The Board of Directors shall have the authority to effect any such merger, consolidation or transfer of assets, without action or approval of the stockholders, to the extent consistent with applicable laws and regulations.

**Section 5.16. Classes of Shares**: The Board of Directors shall also have the authority, subject to applicable laws and regulations and without action or approval of the stockholders, from time to time to designate any class of shares of a series of shares as a separate series of shares as it deems necessary or desirable. The designation of any class of shares of a series of shares as a separate series of shares shall be effective at the time specified by the Board of Directors. The Board of Directors shall allocate the assets, liabilities and expenses attributable to any class of shares designated as a separate series of shares to such separate series of shares and shall designate the relative rights and preferences of such series of shares, provided that such relative rights and preferences may not be materially adversely different from the relative rights and preferences of the class of shares designated as a separate series of shares.

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**Section 5.17. Fees and Expenses**. Notwithstanding anything to the contrary contained in these Articles of Incorporation, each share of any series or class of a series may be subject to such sales loads or charges, whether initial, deferred or contingent, or any combination thereof, or any other type of sales load or charge; to such expenses and fees (including, without limitation, distribution expenses, administrative expenses under an administrative or service agreement, plan or other arrangement, however designated, and other administrative, recordkeeping, redemption, service and other fees, however designated); to such account size requirements; and to such other rights and provisions; which may be the same or different from any other share of any series or class, including any other share of the same series or class, all as the Board of Directors may from time to time establish and/or change in accordance with applicable laws and regulations.

THIRD: The Corporation is registered as an open-end company under the Investment Company Act of 1940.

FOURTH: The Articles Supplementary shall become effective immediately upon filing.

*Remainder of Page Intentionally Left Blank*

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IN WITNESS WHEREOF, Principal Funds, Inc. has caused this to be signed in its name and on its behalf by the undersigned.

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| | |
|:---|:---|
| PRINCIPAL FUNDS, INC. | PRINCIPAL FUNDS, INC. |
| By: | /s/ Adam U. Shaikh |
| | Adam U. Shaikh |
| | Vice President, Assistant General Counsel, and |
| | &nbsp;&nbsp;&nbsp;&nbsp; Assistant Secretary |
| By: | /s/ Deanna Y. Pellack |
| | Deanna Y. Pellack |
| | Counsel and Secretary |
| Attest |  |
| /s/ Laura B. Latham  |  |
| Laura B. Latham  |  |
| Counsel and Assistant Secretary  |  |

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The UNDERSIGNED, Adam U. Shaikh, Vice President, Assistant General Counsel, and Assistant Secretary of Principal Funds, Inc., who executed on behalf of said corporation the foregoing Articles Supplementary, of which this certificate is made a part, hereby acknowledges, in the name and on behalf of said corporation, the foregoing Articles Supplementary to be the corporate act of said corporation and further certifies that, to the best of his knowledge, information, and belief, the matters and facts set forth therein with respect to the approval thereof are true in all material respects, under the penalties of perjury.

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| |
|:---|
| /s/ Adam U. Shaikh |
| Adam U. Shaikh |
| Vice President, Assistant General Counsel, |
| &nbsp;&nbsp;&nbsp;&nbsp; and Assistant Secretary |
| Principal Funds, Inc. |

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The UNDERSIGNED, Deanna Y. Pellack, Counsel and Secretary of Principal Funds, Inc., who executed on behalf of said corporation the foregoing Articles Supplementary, of which this certificate is made a part, hereby acknowledges, in the name and on behalf of said corporation, the foregoing Articles Supplementary to be the corporate act of said corporation and further certifies that, to the best of her knowledge, information, and belief, the matters and facts set forth therein with respect to the approval thereof are true in all material respects, under the penalties of perjury.

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| |
|:---|
| /s/ Deanna Y. Pellack |
| Deanna Y. Pellack |
| Counsel and Secretary |
| Principal Funds, Inc. |

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## Ex-99.(D)(1)

**PRINCIPAL FUNDS, INC.**

**AMENDED AND RESTATED MANAGEMENT AGREEMENT**

This AMENDED AND RESTATED MANAGEMENT AGREEMENT (the "Agreement"), to be effective March 1, 2026, is by and between PRINCIPAL FUNDS, INC., a Maryland corporation (the "Fund"), on behalf of each series identified on <u>Schedule 1</u> attached hereto, as may be amended from time to time (each, a "Series"), and PRINCIPAL GLOBAL INVESTORS, LLC, a Delaware limited liability company (the "Manager").

**W I T N E S S E T H:**

WHEREAS, The Fund has furnished the Manager with copies properly certified or authenticated of each of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Articles of Incorporation of the Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Bylaws of the Fund as adopted by the Board of Directors; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Resolutions of the Board of Directors of the Fund selecting the Manager as investment adviser for each Series and approving the form of this Agreement with respect to each such Series; and

WHEREAS, The Fund desires to retain the Manager to provide investment management services to each Series on the terms set forth in this Agreement, and the Manager is willing to provide such investment management services to each Series on the terms set forth in this Agreement;

NOW, THEREFORE, in consideration of the premises and mutual agreements herein contained, the Fund hereby appoints the Manager to act as investment adviser and manager of each Series, and the Manager agrees to act, perform or assume the responsibility therefore in the manner and subject to the conditions hereinafter set forth. The Fund will furnish the Manager from time to time with copies, properly certified or authenticated, of all amendments of or supplements to the foregoing, if any.

**1.<u>INVESTMENT ADVISORY SERVICES</u>**

The Manager will regularly perform the following services for each Series:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Provide investment research, advice and supervision;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Provide investment advisory, research and statistical facilities and all clerical services relating to research, statistical and investment work;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Furnish to the Board of Directors of the Fund (or any appropriate committee of such Board), and provide ongoing review, evaluation and revision from time to time as conditions require of, a recommended investment program for the portfolio of each Series of the Fund consistent with each Series' investment objective and policies, including any recommendation for any combination or liquidation of Series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Where applicable, based upon research, analysis and due diligence, recommend to the Board of Directors of the Fund one or more sub-advisers for a Series of the Fund; regularly monitor and evaluate each sub-adviser's performance and recommend changes to the sub-advisers in situations in which appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Implement such of its recommended investment program for each Series as the Fund shall approve, by placing orders for the purchase and sale of securities, subject always to the provisions of the Fund's Articles of Incorporation and Bylaws and the requirements of the Investment Company Act of 1940, as amended (the "1940 Act"), and the Fund's Registration Statement, current Prospectus and Statement of Additional Information, as each of the same shall be from time to time in effect;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Advise and assist the officers of the Fund in taking such steps as are necessary or appropriate to carry out the decisions of its Board of Directors and any appropriate committees of such Board regarding the general conduct of the investment business of each Series; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Report to the Board of Directors of the Fund at such times and in such detail as the Board may deem appropriate in order to enable it to determine that the investment policies of each Series are being observed.

**2.<u>ACCOUNTING SERVICES</u>**

The Manager will provide all accounting services customarily required by investment companies, in accordance with the requirements of applicable laws, rules and regulations and with the policies and practices of each Series as communicated to the Manager from time to time, including, but not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Maintain fund general ledger and journal;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Prepare and record disbursements for direct expenses of each Series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Prepare daily money transfer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Reconcile all bank and custodian accounts of each Series;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Assist Fund independent auditors as appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Prepare daily projection of available cash balances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Record trading activity for purposes of determining net asset values and daily dividend;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Prepare daily portfolio valuation report to value portfolio securities and determine daily accrued income;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Determine the net asset value per share of each Series daily or at such other intervals as the Fund may reasonably request or as may be required by law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)Prepare monthly, quarterly, semi-annual and annual financial statements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)Provide financial information for reports to the Securities and Exchange Commission (the "SEC") in compliance with the provisions of the 1940 Act and the Securities Act of 1933, as amended (the "Securities Act"), the Internal Revenue Service and any other regulatory or governmental agencies as required;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)Provide financial, yield, net asset value, and similar information to National Association of Securities Dealers, Inc., and other survey and statistical agencies as instructed from time to time by the Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)Investigate, assist in the selection of and conduct relations with custodians, depositories, accountants, legal counsel, insurers, banks and persons in any other capacity deemed to be necessary or desirable for the operations of each Series; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)Obtain and keep in effect fidelity bonds and directors and officers/errors and omissions insurance policies for the Fund in accordance with the requirements of the 1940 Act and the rules thereunder, as such bonds and policies are approved by the Fund's Board of Directors.

Page 2 of 12

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**3.<u>CORPORATE ADMINISTRATIVE SERVICES</u>**

The Manager will provide the following corporate administrative services for the Fund:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)furnish the services of such of the Manager's officers and employees as may be elected officers or directors of the Fund, subject to their individual consent to serve and to any limitations imposed by law;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)furnish office space, and all necessary office facilities and equipment, for the general corporate functions of the Fund (i.e., functions other than (i) underwriting and distribution of the shares of each Series; (ii) custody of the assets of each Series, (iii) transfer and paying agency services; and (iv) corporate and portfolio accounting services);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)furnish the services of executive and clerical personnel necessary to perform the general corporate functions of the Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)design, develop, implement and regularly monitor appropriate compliance processes; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)prepare, or provide oversight and review of the preparation of, registration statements, shareholder reports and other disclosure materials and regulatory filings for each Series.

**4.<u>RESERVED RIGHT TO DELEGATE DUTIES AND SERVICES TO OTHERS</u>**

In each case, to the extent required by applicable law (i) subject to the prior approval of a majority of the Board of Directors of the Fund, including a majority of the Directors who are not interested persons (as defined in the 1940 Act) of the Manager, Principal Life Insurance Company, or the Fund and, (ii) by vote of a majority of the outstanding voting securities (as defined in the 1940 Act) of the applicable Series, the Manager, in assuming responsibility for the various services as set forth in this Agreement, may (a) enter into agreements with others for the performance of certain duties and services or (b) delegate the performance of some or all of such duties and services to Principal Life Insurance Company, or one or more affiliates thereof; provided, however, that (x) the entry into any such agreements shall not relieve the Manager of its duty to review and monitor the performance of such persons to the extent provided in the agreements with such persons or as determined from time to time by the Board of Directors and (y) the entry into any such agreements in clause (a) or any such delegation in clause (b) shall not relieve the Manager of any of its obligations under this Agreement.

**5.<u>EXPENSES BORNE BY THE MANAGER</u>**

The Manager will pay:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)the organizational expenses of the Fund and its Series and share classes, including the Fund's registration under the 1940 Act, and the initial registration of its Capital Stock for sale under the Securities Act with the SEC;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Compensation of personnel, officers and directors who are also affiliated with the Manager; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Expenses and compensation associated with furnishing office space, and all necessary office facilities and equipment, and personnel necessary to perform the general corporate functions of the Fund.

**6.<u>COMPENSATION OF THE MANAGER BY FUND</u>**

For all services to be rendered and payments made as provided in Sections 1, 2 and 3 hereof, the Fund will accrue daily and pay the Manager monthly, or at such other intervals as the Fund and Manager may agree, a fee based on the average of the values placed on the net assets of each Series of the Fund as of the time of determination of the net asset value on each trading day throughout the month in accordance with <u>Schedule 1</u> attached hereto.

Page 3 of 12

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Net asset value shall be determined pursuant to applicable provisions of the Articles of Incorporation of the Fund. If pursuant to such provisions the determination of net asset value is suspended, then for the purposes of this Section 6 the value of the net assets of each Series as last determined shall be deemed to be the value of the net assets for each day the suspension continues.

The Manager may, at its option, waive all or part of its compensation for such period of time as it deems necessary or appropriate.

**7.<u>EXPENSES BORNE BY FUND</u>**

The Fund will pay, without reimbursement by the Manager, all expenses attributable to the operation of the Fund or the services described in this Agreement and not specifically identified in this Agreement as being paid by the Manager.

**8.<u>AVOIDANCE OF INCONSISTENT POSITION</u>**

In connection with purchases or sales of portfolio securities for the account of each Series, neither the Manager nor any of the Manager's directors, officers or employees will act as a principal or agent or receive any commission.

**9.<u>LIMITATION OF LIABILITY OF THE MANAGER</u>**

The Manager shall not be liable for any error of judgment or mistake of law or for any loss suffered by the Fund in connection with the matters to which this Agreement relates, except a loss resulting from willful misfeasance, bad faith or gross negligence on the Manager's part in the performance of its duties or from reckless disregard by it of its obligations and duties under this Agreement.

**10.<u>COPIES OF CORPORATE DOCUMENTS</u>**

The Fund will furnish the Manager promptly with properly certified or authenticated copies of amendments or supplements to its Articles of Incorporation or Bylaws. Also, the Fund will furnish the Manager financial and other corporate information as needed, and otherwise cooperate fully with the Manager in its efforts to carry out its duties and responsibilities under this Agreement.

**11.<u>DURATION AND TERMINATION OF THIS AGREEMENT</u>**

This Agreement shall become effective with respect to a Series as of the corresponding date set forth on <u>Schedule 2</u> to this Agreement, as may be amended from time to time, and, unless otherwise terminated with respect to such Series shall continue in effect thereafter for the initial term set forth on <u>Schedule 2</u> to this Agreement, and thereafter from year to year, provided that in each case the continuance is specifically approved within the period required by the 1940 Act either by the Board of Directors of the Fund or by a vote of a majority of the outstanding voting securities of the Series and, in either event, by vote of a majority of the directors of the Fund who are not interested persons of the Manager, Principal Life Insurance Company, or the Fund cast in accordance with the requirements of the 1940 Act after taking into effect any exemptive order, no-action assurances or other relief, rule or regulation upon which the Fund may rely. This Agreement may, on sixty days written notice, be terminated with respect to a Series at any time without the payment of any penalty, by the Board of Directors of the Fund, by vote of a majority of the outstanding voting securities of the Series, or by the Manager. This Agreement shall automatically terminate in the event of its assignment. In interpreting the provisions of this Section 11, the definitions contained in Section 2(a) of the 1940 Act (particularly the definitions of "interested person," "assignment," "voting security" and "majority of the outstanding voting securities") shall be applied.

Page 4 of 12

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**12.<u>AMENDMENT OF THIS AGREEMENT</u>**

No provision of this Agreement may be changed, waived, discharged or terminated orally, but only by an instrument in writing signed by the party against which enforcement of the change, waiver, discharge or termination is sought, and no material amendment of this Agreement shall be effective until approved, if required by the 1940 Act or the rules, regulations, interpretations or orders issued thereunder, by vote of the holders of a majority of the outstanding voting securities of the Series to which such amendment relates and by the vote of a majority of the directors who are not interested persons of the Manager, Principal Life Insurance Company or the Fund cast in accordance with the requirements of the 1940 Act after taking into effect any exemptive order, no-action assurances or other relief, rule or regulation upon which the Fund may rely.

**13.<u>ADDITIONAL SERIES</u>**

In the event the Fund establishes one or more Series after the effective date of this Agreement, such Series will become Series under this Agreement upon approval of this Agreement for such Series in the manner required by the 1940 Act and the amendment of <u>Schedules 1</u> and <u>2</u> hereto.

**14.<u>ADDRESS FOR PURPOSE OF NOTICE</u>**

Any notice under this Agreement shall be in writing, addressed and delivered or mailed, postage prepaid, to the other party at such address as such other party may designate for the receipt of such notices. Until further notice to the other party, it is agreed that the address of the Fund and that of the Manager for this purpose shall be the Principal Financial Group, Des Moines, Iowa 50392-0200.

**15.<u>REPRESENTATIONS</u>**

The Fund represents and warrants that the Fund and each Series is and will remain a "qualified eligible person" as defined in U.S. Commodity Futures Trading Commission (CFTC) Regulation 4.7 (17 Code of Federal Regulations Section 4.7) and the Fund consents to Manager treating it and each Series as an exempt account under CFTC Regulation 4.7.

The Fund represents and warrants that each Series is a member of the National Futures Association (NFA) and is registered under the U.S. Commodity Exchange Act (CEA) or that it is not required to be a member of the NFA because (i) it is exempt from registration under the CEA, or (ii) it does not engage in activities that require such registration.

**16.<u>MISCELLANEOUS</u>**

The captions in this Agreement are included for convenience of reference only, and in no way define or delimit any of the provisions hereof or otherwise affect their construction or effect. This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Each party agrees that electronic signatures of the parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means any electronic sound, symbol, or process attached to or logically associated with a record and executed and adopted by a party with the intent to sign such record, including facsimile or email electronic signatures.

Page 5 of 12

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**PURSUANT TO AN EXEMPTION FROM THE COMMODITY FUTURES TRADING COMMISSION IN CONNECTION WITH ACCOUNTS OF QUALIFIED ELIGIBLE PERSONS, THIS BROCHURE OR ACCOUNT DOCUMENT IS NOT REQUIRED TO BE, AND HAS NOT BEEN, FILED WITH THE COMMISSION. THE COMMODITY FUTURES TRADING COMMISSION DOES NOT PASS UPON THE MERITS OF PARTICIPATING IN A TRADING PROGRAM OR UPON THE ADEQUACY OR ACCURACY OF COMMODITY TRADING ADVISOR DISCLOSURE. CONSEQUENTLY, THE COMMODITY FUTURES TRADING COMMISSION HAS NOT REVIEWED OR APPROVED THIS TRADING PROGRAM OR THIS BROCHURE OR ACCOUNT DOCUMENT.**

*Remainder of Page Intentionally Blank*

Page 6 of 12

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IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed by their respective officers thereunto duly authorized.

---

| | |
|:---|:---|
| **PRINCIPAL FUNDS, INC.** | **PRINCIPAL FUNDS, INC.** |
| By: | /s/ Adam U. Shaikh |
|  | Adam U. Shaikh<br>Vice President, Assistant General Counsel, and<br> Assistant Secretary |
| By: | /s/ Deanna Y. Pellack |
|  | Deanna Y. Pellack<br>Counsel and Secretary  |
| **PRINCIPAL GLOBAL INVESTORS, LLC** | **PRINCIPAL GLOBAL INVESTORS, LLC** |
| By: | /s John L. Sullivan |
|  | John L. Sullivan <br>Assistant General Counsel |
| By: | /s/ David P. Michalik |
|  | David P. Michalik<br>Counsel |

---

Page 7 of 12

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---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **SCHEDULE 1** | **SCHEDULE 1** | **SCHEDULE 1** | **SCHEDULE 1** | **SCHEDULE 1** | **SCHEDULE 1** |
| **Series** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** |
| **Series** | **First $3B** | **Next $4B** | **Next $4B** | **Next $4B** | **Over $15B** |
| SAM Balanced Portfolio\* | 0.35% | 0.30% | 0.25% | 0.20% | 0.18% |
| SAM Conservative Balanced Portfolio\* | 0.35% | 0.30% | 0.25% | 0.20% | 0.18% |
| SAM Conservative Growth Portfolio\* | 0.35% | 0.30% | 0.25% | 0.20% | 0.18% |
| SAM Flexible Income Portfolio\* | 0.35% | 0.30% | 0.25% | 0.20% | 0.18% |
| SAM Strategic Growth Portfolio\* | 0.35% | 0.30% | 0.25% | 0.20% | 0.18% |

---

\*Breakpoints based on aggregate SAM Portfolio net assets.

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Series** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** |
| **Series** | **First $500M** | **Next**<br>**$500M** | **Next**<br>**$500M** | **Over**<br>**$1.5B** |
| California Municipal Fund | 0.40% | 0.38% | 0.36% | 0.35% |
| Finisterre Emerging Markets Total Return Bond Fund | 0.75% | 0.74% | 0.73% | 0.72% |
| Global Listed Infrastructure Fund | 0.75% | 0.73% | 0.71% | 0.70% |
| Global Multi-Strategy Fund | 1.21% | 1.19% | 1.17% | 1.16% |
| Government & High Quality Bond Fund | 0.49% | 0.47% | 0.45% | 0.44% |
| International Small Company Fund | 1.00% | 0.98% | 0.96% | 0.95% |
| Opportunistic Municipal Fund | 0.44% | 0.42% | 0.40% | 0.39% |
| Tax-Exempt Bond Fund | 0.40% | 0.38% | 0.36% | 0.35% |

---

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **Series** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** |
| **Series** | **First**<br>**$500M** | **Next**<br>**$500M** | **Next**<br>**$500M** | **Next**<br>**$500M** | **Next**<br>**$1B** | **Over**<br>**$3B** |
| Core Plus Bond Fund | 0.42% | 0.40% | 0.38% | 0.37% | 0.36% | 0.35% |
| Diversified Income Fund | 0.69% | 0.67% | 0.65% | 0.64% | 0.63% | 0.62% |
| Diversified Real Asset Fund | 0.80% | 0.78% | 0.76% | 0.75% | 0.74% | 0.73% |
| Global Emerging Markets Fund | 0.99% | 0.97% | 0.95% | 0.94% | 0.93% | 0.92% |
| Global Real Estate Securities Fund | 0.90% | 0.88% | 0.86% | 0.85% | 0.84% | 0.83% |
| International Equity Fund | 0.65% | 0.63% | 0.61% | 0.60% | 0.59% | 0.58% |
| LargeCap Value Fund III | 0.73% | 0.71% | 0.69% | 0.67% | 0.66% | 0.65% |
| MidCap Value Fund I | 0.68% | 0.66% | 0.64% | 0.63% | 0.62% | 0.61% |
| Money Market Fund | 0.40% | 0.39% | 0.38% | 0.37% | 0.36% | 0.35% |
| Overseas Fund | 0.90% | 0.88% | 0.86% | 0.85% | 0.84% | 0.83% |
| Short-Term Income Fund | 0.38% | 0.36% | 0.35% | 0.33% | 0.32% | 0.31% |
| SmallCap Fund | 0.75% | 0.73% | 0.71% | 0.70% | 0.69% | 0.68% |
| SmallCap Growth Fund I | 0.88% | 0.86% | 0.84% | 0.83% | 0.82% | 0.81% |
| Small-MidCap Dividend Income Fund | 0.79% | 0.77% | 0.75% | 0.74% | 0.73% | 0.72% |
| SmallCap Value Fund II | 0.89% | 0.87% | 0.85% | 0.84% | 0.83% | 0.82% |

---

---

| | | | |
|:---|:---|:---|:---|
| **Series** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** |
| **Series** | **First $500M** | **Next $500M** | **Over $1B** |
| Principal Capital Appreciation Fund | 0.625% | 0.500% | 0.375% |

---

Page 8 of 12

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---

| | | | |
|:---|:---|:---|:---|
| **Series** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** |
| **Series** | **First $3B** | **Next $3B** | **Over $6B** |
| Bond Market Index Fund | 0.10% | 0.09% | 0.08% |
| High Yield Fund | 0.51% | 0.49% | 0.47% |
| Inflation Protection Fund | 0.10% | 0.09% | 0.08% |
| International Equity Index Fund | 0.22% | 0.18% | 0.15% |
| LargeCap S&P 500 Index Fund | 0.11% | 0.09% | 0.05% |
| MidCap S&P 400 Index Fund | 0.15% | 0.12% | 0.10% |
| SmallCap S&P 600 Index Fund | 0.15% | 0.12% | 0.10% |

---

---

| | | | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Series** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** |
| **Series** | **First**<br>**$1.5B** | **Next**<br>**$500M** | **Next**<br>**$1B** | **Next**<br>**$9.5B** | **Next**<br>**$2.5B** | **Next**<br>**$3B** | **Next**<br>**$4B** | **Next $3B** | **Next $5B** | **Next $5B** | **Over $35B** |
| MidCap Fund | 0.63% | 0.60% | 0.59% | 0.58% | 0.57% | 0.56% | 0.55% | 0.53% | 0.51% | 0.50% | 0.49% |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Series** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** |
| **Series** | **First**<br>**$500M** | **Next**<br>**$500M** | **Next**<br>**$500M** | **Next**<br>**$500M** | **Next**<br>**$1B** | **Next**<br>**$7B** | **Over $10B** |
| Blue Chip Fund | 0.65% | 0.63% | 0.61% | 0.60% | 0.59% | 0.58% | 0.57% |
| Core Fixed Income Fund | 0.39% | 0.37% | 0.35% | 0.34% | 0.33% | 0.32% | 0.31% |
| Diversified International Fund | 0.80% | 0.78% | 0.76% | 0.75% | 0.73% | 0.70% | 0.69% |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Series** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** |
| **Series** | **First**<br>**$250M** | **Next**<br>**$250M** | **Next**<br>**$6.5B** | **Next**<br>**$3B** | **Next**<br>**$2B** | **Next**<br>**$3B** | **Over $15B** |
| Equity Income Fund | 0.60% | 0.55% | 0.50% | 0.49% | 0.48% | 0.46% | 0.44% |

---

---

| | | | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|:---|:---|
| **Series** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** |
| **Series** | **First**<br>**$500M** | **Next**<br>**$500M** | **Next**<br>**$500M** | **Next**<br>**$500M** | **Next**<br>**$1B** | **Next**<br>**$2B** | **Next**<br>**$2B** | **Next**<br>**$3B** | **Over**<br>**$10B** |
| Real Estate Securities Fund | 0.85% | 0.83% | 0.81% | 0.80% | 0.79% | 0.78% | 0.77% | 0.76% | 0.75% |
| Spectrum Preferred and Capital Securities Income Fund | 0.75% | 0.73% | 0.71% | 0.70% | 0.69% | 0.68% | 0.67% | 0.66% | 0.65% |

---

---

| | | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|:---|
| **Series** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** |
| **Series** | **First**<br>**$500M** | **Next**<br>**$500M** | **Next**<br>**$500M** | **Next**<br>**$500M** | **Next**<br>**$1B** | **Next**<br>**$9B** | **Over $12B** |
| LargeCap Growth Fund I | 0.66% | 0.64% | 0.62% | 0.61% | 0.60% | 0.59% | 0.58% |

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Page 9 of 12

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| | |
|:---|:---|
| **Series** | **Management Fee as a Percentage**<br>**of Average Daily Net Assets** |
| Capital Securities Fund | 0.00% |
| Global Macro Fund | 0.75% |
| Government Money Market Fund | 0.15% |
| Principal LifeTime 2015 Fund | 0.00% |
| Principal LifeTime 2020 Fund | 0.00% |
| Principal LifeTime 2025 Fund | 0.00% |
| Principal LifeTime 2030 Fund | 0.00% |
| Principal LifeTime 2035 Fund | 0.00% |
| Principal LifeTime 2040 Fund | 0.00% |
| Principal LifeTime 2045 Fund | 0.00% |
| Principal LifeTime 2050 Fund | 0.00% |
| Principal LifeTime 2055 Fund | 0.00% |
| Principal LifeTime 2060 Fund | 0.00% |
| Principal LifeTime 2065 Fund | 0.00% |
| Principal LifeTime 2070 Fund | 0.00% |
| Principal LifeTime Strategic Income Fund | 0.00% |
| Principal LifeTime Hybrid 2015 Fund | 0.00% |
| Principal LifeTime Hybrid 2020 Fund | 0.00% |
| Principal LifeTime Hybrid 2025 Fund | 0.00% |
| Principal LifeTime Hybrid 2030 Fund | 0.00% |
| Principal LifeTime Hybrid 2035 Fund | 0.00% |
| Principal LifeTime Hybrid 2040 Fund | 0.00% |
| Principal LifeTime Hybrid 2045 Fund | 0.00% |
| Principal LifeTime Hybrid 2050 Fund | 0.00% |
| Principal LifeTime Hybrid 2055 Fund | 0.00% |
| Principal LifeTime Hybrid 2060 Fund | 0.00% |
| Principal LifeTime Hybrid 2065 Fund | 0.00% |
| Principal LifeTime Hybrid 2070 Fund | 0.00% |
| Principal LifeTime Hybrid Income Fund | 0.00% |

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Page 10 of 12

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| | | |
|:---|:---|:---|
| **SCHEDULE 2** | **SCHEDULE 2** | **SCHEDULE 2** |
| Effective Date and Initial Term of Management Agreement for each Series |  |  |
| **Series** | **Effective Date** | **Initial Term** |
| Blue Chip Fund | 06/14/2012 | One Year |
| Bond Market Index Fund | 12/30/2009 | One Year |
| California Municipal Fund | 01/12/2007 | One Year |
| Capital Securities Fund | 03/14/2014 | One Year |
| Core Fixed Income Fund | 01/12/2007 | One Year |
| Core Plus Bond Fund | 12/06/2000 | One Year |
| Diversified Income Fund | 12/15/2008 | One Year |
| Diversified International Fund | 12/06/2000 | One Year |
| Diversified Real Asset Fund | 03/16/2010 | One Year |
| Equity Income Fund | 01/12/2007 | One Year |
| Finisterre Emerging Markets Total Return Bond Fund | 07/11/2016 | One Year |
| Global Emerging Markets Fund | 12/06/2000 | One Year |
| Global Listed Infrastructure Fund | 09/22/2022 | Two Years |
| Global Macro Fund | 11/14/2025 | Two Years |
| Global Multi-Strategy Fund | 10/24/2011 | One Year |
| Global Real Estate Securities Fund | 10/01/2007 | One Year |
| Government & High Quality Bond Fund | 01/12/2007 | One Year |
| Government Money Market Fund | 12/20/2017 | One Year |
| High Yield Fund | 01/12/2007 | One Year |
| Inflation Protection Fund | 12/29/2004 | One Year |
| International Equity Fund | 12/29/2003 | One Year |
| International Equity Index Fund | 12/30/2009 | One Year |
| International Small Company Fund | 06/11/2014 | One Year |
| LargeCap Growth Fund I | 12/06/2000 | One Year |
| LargeCap S&P 500 Index Fund | 12/06/2000 | One Year |
| LargeCap Value Fund III | 12/06/2000 | One Year |
| MidCap Fund | 12/06/2000 | One Year |
| MidCap S&P 400 Index Fund | 12/06/2000 | One Year |
| MidCap Value Fund I | 12/29/2003 | One Year |
| Money Market Fund | 12/06/2000 | One Year |
| Opportunistic Municipal Fund | 06/14/2012 | One Year |
| Overseas Fund | 09/30/2008 | One Year |
| Principal Capital Appreciation Fund | 01/12/2007 | One Year |
| Principal LifeTime 2015 Fund | 02/29/2008 | One Year |
| Principal LifeTime 2020 Fund | 02/27/2001 | One Year |
| Principal LifeTime 2025 Fund | 02/29/2008 | One Year |
| Principal LifeTime 2030 Fund | 02/27/2001 | One Year |
| Principal LifeTime 2035 Fund | 02/29/2008 | One Year |
| Principal LifeTime 2040 Fund | 02/27/2001 | One Year |
| Principal LifeTime 2045 Fund | 02/29/2008 | One Year |
| Principal LifeTime 2050 Fund | 02/27/2001 | One Year |
| Principal LifeTime 2055 Fund | 02/29/2008 | One Year |
| Principal LifeTime 2060 Fund | 03/01/2013 | One Year |
| Principal LifeTime 2065 Fund | 09/06/2017 | One Year |
| Principal LifeTime 2070 Fund | 03/01/2023 | Two Years |
| Principal LifeTime Strategic Income Fund | 02/27/2001 | One Year |

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Page 11 of 12

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| | | |
|:---|:---|:---|
| **SCHEDULE 2** | **SCHEDULE 2** | **SCHEDULE 2** |
| Effective Date and Initial Term of Management Agreement for each Series |  |  |
| **Series** | **Effective Date** | **Initial Term** |
| Principal LifeTime Hybrid 2015 Fund | 09/30/2014 | One Year |
| Principal LifeTime Hybrid 2020 Fund | 09/30/2014 | One Year |
| Principal LifeTime Hybrid 2025 Fund | 09/30/2014 | One Year |
| Principal LifeTime Hybrid 2030 Fund | 09/30/2014 | One Year |
| Principal LifeTime Hybrid 2035 Fund | 09/30/2014 | One Year |
| Principal LifeTime Hybrid 2040 Fund | 09/30/2014 | One Year |
| Principal LifeTime Hybrid 2045 Fund | 09/30/2014 | One Year |
| Principal LifeTime Hybrid 2050 Fund | 09/30/2014 | One Year |
| Principal LifeTime Hybrid 2055 Fund | 09/30/2014 | One Year |
| Principal LifeTime Hybrid 2060 Fund | 09/30/2014 | One Year |
| Principal LifeTime Hybrid 2065 Fund | 09/06/2017 | One Year |
| Principal LifeTime Hybrid 2070 Fund | 03/01/2023 | Two Years |
| Principal LifeTime Hybrid Income Fund | 09/30/2014 | One Year |
| Real Estate Securities Fund | 12/06/2000 | One Year |
| SAM\* Balanced Portfolio | 01/12/2007 | One Year |
| SAM\* Conservative Balanced Portfolio | 01/12/2007 | One Year |
| SAM\* Conservative Growth Portfolio | 01/12/2007 | One Year |
| SAM\* Flexible Income Portfolio | 01/12/2007 | One Year |
| SAM\* Strategic Growth Portfolio | 01/12/2007 | One Year |
| Short-Term Income Fund | 01/12/2007 | One Year |
| SmallCap Fund | 12/06/2000 | One Year |
| SmallCap Growth Fund I | 12/06/2000 | One Year |
| SmallCap S&P 600 Index Fund | 12/06/2000 | One Year |
| SmallCap Value Fund II | 06/01/2004 | One Year |
| Small-MidCap Dividend Income Fund | 06/06/2011 | One Year |
| Spectrum Preferred and Capital Securities Income Fund | 05/01/2002 | One Year |
| Tax-Exempt Bond Fund | 01/12/2007 | One Year |

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\*Strategic Asset Management

Page 12 of 12

## Ex-99.(D)(5)F

**<u>PRINCIPAL FUNDS, INC.</u>**

**AMENDED AND RESTATED SUB-ADVISORY AGREEMENT**

**CLEARBRIDGE INVESTMENTS (NORTH AMERICA) PTY LIMITED**

**SUB-ADVISED FUND**

AMENDED AND RESTATED SUB-ADVISORY AGREEMENT (the "Agreement") to be effective as of January 1, 2026, by and between PRINCIPAL GLOBAL INVESTORS, LLC, a Delaware limited liability company (the "Manager"), and CLEARBRIDGE INVESTMENTS (NORTH AMERICA) PTY LIMITED(formerly, CLEARBRIDGE RARE INFRASTRUCTURE (NORTH AMERICA) PTY LIMITED), a limited liability company registered in the State of Victoria, Australia (the "Sub-Advisor").

W I T N E S S E T H:

WHEREAS, the Manager is the manager and investment advisor to each series of Principal Funds, Inc. (the "Fund"), an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"); and

WHEREAS, the Manager desires to retain the Sub-Advisor to render discretionary investment advisory services for all or a portion of the assets of each series of the Fund identified in <u>Appendix A</u> hereto, as may be amended from time to time (the "Series"), which the Manager has agreed to provide to the Fund, and the Sub-Advisor desires to furnish such services; and

WHEREAS, the Manager and the Sub-Advisor agree to amend and restate the Sub-Advisory Agreement between the Manager and the Sub-Advisor dated July 31, 2020 with this Agreement; and

WHEREAS, the Manager has furnished the Sub-Advisor with copies properly certified or authenticated of each of the following and will promptly provide the Sub-Advisor with copies properly certified or authenticated of any amendment or supplement thereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Management Agreement (the "Management Agreement") with the Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Fund's registration statement and financial statements as filed with the Securities and Exchange Commission (the "SEC");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Fund's Articles of Incorporation and By-laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Policies, procedures or instructions adopted or approved by the Board of Directors of the Fund relating to obligations and services to be provided by the Sub-Advisor.

NOW, THEREFORE, in consideration of the premises and the terms and conditions hereinafter set forth, the parties agree as follows:

1.<u>Appointment of Sub-Advisor</u>

In accordance with and subject to the Management Agreement, the Manager hereby appoints the Sub-Advisor to perform the services described in Section 2 below for investment and reinvestment of such portion of the assets of each Series as may be allocated to the Sub-Advisor by the Manager, from time to time (the "Allocated Assets"), subject to the control and direction of the Manager and the Fund's Board of Directors, for the period and on the terms hereinafter set forth. The Sub-Advisor accepts such appointment and agrees to furnish the services hereinafter set forth for the compensation herein provided. The Sub-Advisor shall for all purposes herein be deemed to be an independent contractor and shall, except as expressly provided or authorized, have no authority to act for or represent the Fund or the Manager in any way or otherwise be deemed an agent of the Fund or the Manager.

2.<u>Obligations of and Services to be Provided by the Sub-Advisor</u>

The Sub-Advisor will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Provide investment advisory services, including but not limited to research, advice and supervision for the Allocated Assets of each Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Provide information and assistance to the Manager related to the recommended investment program for each Series, consistent with each Series' respective investment objective and policies and any specific criteria applicable to the Allocated Assets, so the Manager may furnish such information to the Board of Directors of the Fund (or any appropriate committee of such Board) for approval and/or review and update such information from time to time as conditions require.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Implement the approved investment program for the Allocated Assets by placing orders for the purchase and sale of securities without prior consultation with the Manager and without regard to the length of time the securities have been held, the resulting rate of portfolio turnover or any tax considerations, subject always to the provisions of the Fund's registration statement, Articles of Incorporation and Bylaws and the requirements of the 1940 Act, as each of the same shall be from time to time in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Advise and assist the officers of the Fund, as requested by the officers, in taking such steps as are necessary or appropriate to carry out the decisions of its Board of Directors, and any appropriate committees of such Board, regarding the general conduct of the investment business of each Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Maintain, in connection with the Sub-Advisor's investment advisory services provided to the Allocated Assets, compliance with the 1940 Act and the regulations adopted by the SEC thereunder and the Series' investment strategies and restrictions as stated in the Fund's prospectus and statement of additional information and any specific criteria applicable to the Allocated Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Report to the Board of Directors of the Fund at such times and in such detail as the Board of Directors may reasonably deem appropriate in order to enable it to determine that the investment policies, procedures and approved investment program of each Series (and any specific criteria applicable to the Allocated Assets) are being observed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Upon request, provide assistance and recommendations for the determination of the fair value of certain securities when reliable market quotations are not readily available for purposes of calculating net asset value in accordance with procedures and methods established by the Fund's Board of Directors. Further, the Sub-Advisor will provide security and foreign exchange trade details to the Manager so that the effects of all securities trades entered into by or for a Series are included in the appropriate day's end of day net asset value. Sub-Advisor must also communicate all trade amendments, cancellations or re-books accurately and timely to be included in the daily net asset value of a Series. Rule 2a-4 of the 1940 Act permits registered investment companies to record security transactions as of one day after the trade date for purposes of determining net asset value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Furnish, at its own expense, (i) all necessary investment and management facilities, including salaries of clerical and other personnel required for it to execute its duties faithfully, and (ii) administrative facilities, including bookkeeping, clerical personnel and equipment necessary for the efficient conduct of the investment advisory affairs of each Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Open accounts with Foreign Account Tax Compliance Act compliant broker-dealers, financial counterparties including swap counterparties and futures commission merchants ("broker-dealers"); select broker-dealers to effect all transactions for each Series; place all necessary orders with broker-dealers or issuers (including affiliated broker-dealers); and negotiate commissions, if applicable. To the extent consistent with applicable law, purchase or sell orders for each Series may be aggregated with contemporaneous purchase or sell orders of other clients of the Sub-Advisor. In such event allocation of securities so sold or purchased, as well as the expenses incurred in the transaction, will be made by the Sub-Advisor in the manner the Sub-Advisor considers to be the most equitable and consistent with its fiduciary obligations to the Fund and to other clients. The Sub-Advisor will report on such allocations at the request of the Manager, the Fund or the Fund's Board of Directors providing such information as the number of aggregated trades to which each Series was a party, the broker-dealers to whom such trades were directed and the basis for the allocation for the aggregated trades. The Sub-Advisor shall use its best efforts to obtain execution of transactions for each Series at prices which are advantageous to the Series and at commission rates that are reasonable in relation to the benefits received. However, the Sub-Advisor may select brokers or dealers on the basis that they provide brokerage, research or other services or products to the Sub-Advisor. To the extent consistent with applicable law, the Sub-Advisor may pay a broker or dealer an amount of commission for effecting a securities transaction in excess of the amount of commission or dealer spread another broker or dealer would have charged for effecting that transaction if the Sub-Advisor determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research products and/or services provided by such broker or dealer. This determination, with respect to brokerage and research products and/or services, may be viewed in terms of either that particular transaction or the overall responsibilities which the Sub-Advisor and its affiliates have with respect to each Series as well as to accounts over which they exercise investment discretion. Not all such services or products need be used by the Sub-Advisor in managing the Allocated Assets. In addition, joint repurchase or other accounts may not be utilized by the Series except to the extent permitted under any exemptive order obtained by the Sub-Advisor provided that all conditions of such order are complied with.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)Section 871(m) Transactions: Sub-Advisor shall not on behalf of a Series enter into certain U.S. dividend equivalent payment transactions described in Section 871(m) of the U.S. Internal Revenue Code and the regulations thereunder ("871(m) Transaction") with a foreign counterparty unless: (i) Sub-Advisor adheres to the ISDA 2015 Section 871(m) Protocol on behalf of the Series, and (ii) the foreign counterparty to the 871(m) Transaction provides Sub-Advisor with a properly completed Form W-8IMY certifying to its status as a qualified derivatives dealer ("QDD").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)Maintain all accounts, books and records with respect to the Allocated Assets as are required of an investment advisor of a registered investment company pursuant to the 1940 Act and Investment Advisers Act of 1940, as amended (the "Advisers Act"), and the rules thereunder, and furnish the Fund and the Manager with such periodic and special reports as the Fund or the Manager may reasonably request. In compliance with the requirements of Rule 31a-3 under the 1940 Act, the Sub-Advisor hereby agrees that all records that it maintains for each Series are the property of the Fund, agrees to preserve for the periods described by Rule 31a-2 under the 1940 Act any records that it maintains for the Series and that are required to be maintained by Rule 31a-1 under the 1940 Act, and further agrees to surrender promptly to the Fund any records that it maintains for a Series upon request by the Fund or the Manager. The Sub-Advisor has no responsibility for the maintenance of Fund records except insofar as is directly related to the services the Sub-Advisor provides to a Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)Observe and comply with Rule 17j-1 under the 1940 Act and the Sub-Advisor's Code of Ethics adopted pursuant to that Rule as the same may be amended from time to time. The Manager acknowledges receipt of a copy of the Sub-Advisor's current Code of Ethics. The Sub-Advisor shall promptly forward to the Manager a copy of any material amendment to the Sub-Advisor's Code of Ethics along with certification that the Sub-Advisor has implemented procedures for administering the Sub-Advisor's Code of Ethics.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)From time to time as the Manager or the Fund may request, furnish the requesting party reports on portfolio transactions and reports on investments held by a Series, all in such detail as the Manager or the Fund may reasonably request. The Sub-Advisor will make available its officers and employees to meet with the Fund's Board of Directors at the Fund's principal place of business on due notice to review the investments of a Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)Provide such information as is customarily provided by a sub-advisor, or as may be required or reasonably requested by the Manager, for the Fund or the Manager to comply with their respective obligations under applicable laws, including, without limitation, the Internal Revenue Code of 1986, as amended (the "Code"), the 1940 Act, the Advisers Act, the Securities Act of 1933, as amended (the "Securities Act"), and any state securities laws, and any rule or regulation thereunder. Such information includes, but is not limited to: electronic copies of (i) the Sub-Advisor's compliance manual and policies and procedures adopted to comply with Rules 206(4)-6 and 206(4)-7 of the Advisers Act and (ii) the Sub-Advisor's most recent annual compliance report or a detailed summary of such report; timely, accurate, and complete responses to all 15(c) questionnaires; timely, accurate, and complete responses to all Quarterly Compliance Questionnaires (including the identification of any material compliance matters and an electronic copy of any material changes to the Sub-Advisor's Rules 206(4)-6 and 206(4)-7 policies and procedures, marked to show changes along with a written summary of the purpose of each such change); Annual Proxy Voting Questionnaires; Annual Best Execution and Soft Dollar Questionnaires, and responses to all other requests from the Manager. The Sub-Advisor agrees to make available for the Manager's review all deficiency letters issued by the SEC together with all responses given by Sub-Advisor to such letters. The Sub-Advisor will advise the Manager of any material changes in the Sub-Advisor's ownership within a reasonable time after any such change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)Vote proxies received on behalf of each Series (with respect to the portion thereof allocated to the Sub-Advisor) in a manner consistent with the Sub-Advisor's proxy voting policies and procedures and provide a record of votes cast containing all of the voting information required by Form N-PX in an electronic format to enable the Series to file Form N-PX as required by SEC rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)Respond to tender offers, rights offerings and other voluntary corporate action requests affecting securities held by each Series (with respect to the portion thereof allocated to the Sub-Advisor).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)Cooperate with the Manager in its performance of quarterly and annual tax compliance tests to monitor the Series' compliance with Subchapter M of the Code and Section 817(h) of the Code. If it is determined by the Manager or its tax advisors that the Series is not in compliance with the requirements imposed by the Code, the Sub-Advisor, in consultation with the Manager and its tax advisors, will take prompt action to bring the Series back into compliance within the time permitted under the Code.

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3.<u>Prohibited Conduct</u>

In providing the services described in this Agreement, the Sub-Advisor will not consult with any other investment advisory firm that provides investment advisory services to any investment company sponsored by Principal Financial Group, Inc. regarding transactions for the Fund in securities or other assets.

4.<u>Compensation</u>

As full compensation for all services rendered and obligations assumed by the Sub-Advisor hereunder with respect to the Allocated Assets, the Manager shall pay the compensation specified in <u>Appendix A</u> to this Agreement.

5.<u>Liability of Sub-Advisor</u>

Neither the Sub-Advisor nor any of its directors, officers, employees, agents or affiliates shall be liable to the Manager, the Fund or its shareholders for any loss suffered by the Manager or the Fund resulting from any error of judgment made in the good faith exercise of the Sub-Advisor's investment discretion in connection with selecting investments for a Series or as a result of the failure by the Manager or any of its affiliates to comply with the terms of this Agreement, except for losses resulting from willful misfeasance, bad faith or gross negligence of, or from reckless disregard of, the duties of the Sub-Advisor or any of its directors, officers, employees, agents, or affiliates.

6.<u>Trade Errors</u>

The Sub-Advisor will notify the Manager of any Trade Error(s), regardless of materiality, promptly upon the discovery of such Trade Error(s) by the Sub-Advisor. Notwithstanding Section 5, the Sub-Advisor shall be liable to the Manager, the Fund or its shareholders for any loss suffered by the Manager or the Fund resulting from Trade Errors due to negligence, misfeasance, or disregard of duties of the Sub Advisor or any of its directors, officers, employees, agents (excluding any broker-dealer selected by the Sub-Advisor), or affiliates. Any gains that occur due to a Trade Error shall be retained by the Fund.

For purposes under this Section 6, a "Trade Error" occurs when a transaction results in an unintended, including an impermissible, result. Examples include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• orders by the Sub-Advisor that result in the purchase or sale of securities or other assets that were not intended to be purchased or sold;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• orders by the Sub-Advisor that result in the purchase or sale of securities or other assets in an unintended amount, which includes price or commission rate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• purchases or sales of securities or other assets that violate the investment limitations or restrictions disclosed in the Fund's registration statement and/or imposed by applicable law, regulation, contract or understanding (calculated at the Sub-Advisor's portfolio level), unless otherwise agreed to in writing.

7.<u>Supplemental Arrangements</u>

The Sub-Advisor may enter into arrangements with other persons affiliated with the Sub-Advisor or with unaffiliated third parties to better enable the Sub-Advisor to fulfill its obligations under this Agreement for the provision of certain personnel and facilities to the Sub-Advisor, subject to written notification to and approval of the Manager and, where required by applicable law, the Board of Directors of the Fund; provided, however, that entry into any such arrangements shall not relieve the Sub-Advisor of any of its obligations under this Agreement.

8.<u>Regulation</u>

The Sub-Advisor shall submit to all regulatory and administrative bodies having jurisdiction over the services provided pursuant to this Agreement any information, reports or other material which any such body may request or require pursuant to applicable laws and regulations.

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9.<u>Duration and Termination of This Agreement</u>

This Agreement shall become effective with respect to a Series as of the corresponding date set forth on <u>Appendix B</u> to this Agreement, as may be amended from time to time, and, unless otherwise terminated with respect to such Series, shall continue in effect thereafter for the initial term set forth on <u>Appendix B</u> to this Agreement, and thereafter from year to year, provided that in each case the continuance is specifically approved within the period required by the 1940 Act either by the Board of Directors of the Fund or by a vote of a majority of the outstanding voting securities of the Series and in either event by a vote of a majority of the Board of Directors of the Fund who are not interested persons of the Manager, Principal Financial Group, Inc., the Sub-Advisor or the Fund cast in accordance with the requirements of the 1940 Act after taking into effect any exemptive order, no-action assurances or other relief, rule or regulation upon which the Fund may rely.

If the shareholders of a Series fail to approve the Agreement or any continuance of the Agreement in accordance with the requirements of the 1940 Act, the Sub-Advisor will continue to act as Sub-Advisor with respect to the Allocated Assets of such Series pending the required approval of the Agreement or its continuance or of any contract with the Sub-Advisor or a different manager or sub-advisor or other definitive action; provided, that the compensation received by the Sub-Advisor in respect to the Allocated Assets of such Series during such period is in compliance with Rule 15a-4 under the 1940 Act.

This Agreement may be terminated with respect to a Series at any time without the payment of any penalty by the Board of Directors of the Fund or by the Sub-Advisor, the Manager or by vote of a majority of the outstanding voting securities of the Series on sixty days' written notice. This Agreement shall automatically terminate in the event of its assignment. In interpreting the provisions of this Section 9, the definitions contained in Section 2(a) of the 1940 Act (particularly the definitions of "interested person," "assignment," "voting security" and "majority of the outstanding voting securities") shall be applied.

10.<u>Amendment of this Agreement</u>

No amendment of this Agreement shall be effective unless in writing and signed by both parties. No material amendment of this Agreement shall be effective until approved, if required by the 1940 Act or the rules, regulations, interpretations or orders issued thereunder, by vote of the holders of a majority of the outstanding voting securities of the Series (as defined in the 1940 Act) and by vote of a majority of the Board of Directors of the Fund who are not interested persons (as defined in the 1940 Act) of the Manager, the Sub-Advisor, Principal Financial Group, Inc. or the Fund cast in accordance with the requirements of the 1940 Act after taking into effect any exemptive order, no-action assurances or other relief, rule or regulation upon which the Fund may rely.

11.<u>Additional Series</u>

In the event the Manager wishes to appoint the Sub-Advisor to perform the services described in this Agreement with respect to one or more additional Series of the Fund after the effective date of this Agreement, such Series will become a Series under this Agreement upon approval of this Agreement in the manner required by the 1940 Act and the amendment of <u>Appendices A</u> and <u>B</u> hereto.

12.<u>General Provisions</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Each party agrees to perform such further acts and execute such further documents as are necessary to effectuate the purposes hereof. This Agreement shall be construed and enforced in accordance with and governed by the laws of the State of Iowa. The captions in this Agreement are included for convenience only and in no way define or delimit any of the provisions hereof or otherwise affect their construction or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any notice under this Agreement shall be in writing, addressed and delivered or mailed postage pre-paid to the other party at such address as such other party may designate for the receipt of such notices. Until further notice to the other party, it is agreed that the address of the Manager for this purpose shall be Principal Financial Group, Des Moines, Iowa 50392-0200. The address of the Sub-Advisor for this purpose shall be ClearBridge Investments (North America) Pty Limited, Head of Legal, Risk & Compliance Telephone: +61 2 93977366, Email: aucompliance@ClearBridge.com

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Sub-Advisor will promptly notify the Manager in writing of the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.the Sub-Advisor fails to be registered as an investment advisor under the Advisers Act or under the laws of any jurisdiction in which the Sub-Advisor is required to be registered as an investment advisor in order to perform its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.the Sub-Advisor is served or otherwise receives notice of any action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, involving the affairs of a Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.the Sub-Advisor becomes aware of any pending or threatened action, suit, proceeding, inquiry or investigation that is reasonably likely to result in a conviction, order, judgment or decree issued with respect to it or any affiliate that could reasonably be expected to result in the Sub-Advisor becoming ineligible to serve as an investment advisor of a registered investment company under the 1940 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.the Sub-Advisor becomes aware of a transaction or series of transactions that is reasonably likely to result in a change in the management or control of the Sub-Advisor or a controlling person thereof or otherwise in the assignment (as defined in the 1940 Act) of this Agreement by the Sub-Advisor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Manager shall provide (or cause the Series custodian to provide) timely information to the Sub-Advisor regarding such matters as the composition of the assets of a Series, cash requirements and cash available for investment in a Series, and all other reasonable information as may be necessary for the Sub-Advisor to perform its duties and responsibilities hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The Sub-Advisor acknowledges Manager's representation that the Diversified Real Asset Fund series does not rely on the exclusion from the definition of "commodity pool operator" under Section 4.5 of the General Regulations under the Commodity Exchange Act, as amended (the "CEA").

&nbsp;&nbsp;&nbsp;&nbsp;The Sub-Advisor represents that it (i) is a commodity trading advisor duly registered with the Commodity Futures Trading Commission ("CFTC") and is a member in good standing of the National Futures Association (the "NFA") or (ii) is relying on an exemption from registration as a commodity trading advisor or (iii) is not trading commodity instruments that would subject the Sub-Advisor to register as a commodity trading advisor with the CFTC. As applicable, the Sub-Advisor shall either (i) maintain such registration and membership in good standing or (ii) continue to qualify for an exemption from registration as a commodity trading advisor or (iii) not trade commodity instruments that would subject the Sub-Advisor to so register during the term of this Agreement. Further, the Sub-Advisor agrees to notify the Manager, if applicable, within a commercially reasonable time upon (i) a statutory disqualification of the SubAdvisor under Sections 8a(2) or 8a(3) of the CEA, (ii) a suspension, revocation or limitation of the Sub-Advisor's commodity trading advisor registration or NFA membership, or (iii) the institution of an action or proceeding that would reasonably be expected to lead to a statutory disqualification under the CEA or an investigation by any governmental agency or selfregulatory organization relating to Sub-Advisor's registration as a commodity trading advisor, in each case, subject to applicable law, attorney-client privilege and confidentiality restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)The Sub-Advisor represents that it will not enter into any agreement, oral or written, or other understanding under which the Fund directs or is expected to direct portfolio securities transactions, or any remuneration, to a broker or dealer in consideration for the promotion or sale of Fund shares or shares issued by any other registered investment company. The Sub-Advisor further represents that it is contrary to the Sub-Advisor's policies to permit those who select brokers or dealers for execution of Fund portfolio securities transactions to take into account the broker's or dealer's promotion or sale of Fund shares or shares issued by any other registered investment company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)The Sub-Advisor agrees that neither it nor any of its affiliates will in any way refer to its relationship with the Fund, the Series, or the Manager or any of their respective affiliates in offering, marketing or other promotional materials without the express written consent of the Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)This Agreement contains the entire understanding and agreement of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Each party agrees that electronic signatures of the parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means any electronic sound, symbol, or process attached to or logically associated with a record and executed and adopted by a party with the intent to sign such record, including facsimile or email electronic signatures.

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***PURSUANT TO AN EXEMPTION FROM THE COMMODITY FUTURES TRADING COMMISSION IN CONNECTION WITH ACCOUNTS OF QUALIFIED ELIGIBLE PERSONS, THIS AGREEMENT IS NOT REQUIRED TO BE, AND HAS NOT BEEN, FILED WITH THE COMMISSION. THE COMMODITY FUTURES TRADING COMMISSION DOES NOT PASS UPON THE MERITS OF PARTICIPATING IN ANY TRADING PROGRAM OR UPON THE ADEQUACY OR ACCURACY OF COMMODITY TRADING ADVISOR DISCLOSURE. CONSEQUENTLY, THE COMMODITY FUTURES TRADING COMMISSION HAS NOT REVIEWED OR APPROVED ANY TRADING PROGRAM OF THE ADVISOR OR THIS AGREEMENT.***

*Remainder of Page Intentionally Blank*

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IN WITNESS WHEREOF, the parties have duly executed this Agreement on the date first above written.

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| | |
|:---|:---|
| **PRINCIPAL GLOBAL INVESTORS, LLC** | **PRINCIPAL GLOBAL INVESTORS, LLC** |
| By: | /s/ Laura B. Latham |
| Name: | Laura B. Latham |
| Title: | Assistant General Counsel |
| By: | /s/ John L. Sullivan |
| Name: | John L. Sullivan |
| Title: | Assistant General Counsel |
| **CLEARBRIDGE INVESTMENTS (NORTH AMERICA) PTY LIMITED** PURSUANT TO S127 OF THE *CORPORATIONS ACT 2001* (CTH) | **CLEARBRIDGE INVESTMENTS (NORTH AMERICA) PTY LIMITED** PURSUANT TO S127 OF THE *CORPORATIONS ACT 2001* (CTH) |
| By: | /s/ Annette Golden |
| Name: | Annette Golden |
| Title: | Director |
| By: | /s/ Nicholas Langley |
| Name: | Nicholas Langley |
| Title: | Director |

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**<u>APPENDIX A</u>**

Intentionally Omitted

------

**<u>APPENDIX B</u>**

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| | | |
|:---|:---|:---|
| **Effective Date and Initial Term of Sub-Advisory Agreement for each Series** | **Effective Date and Initial Term of Sub-Advisory Agreement for each Series** | **Effective Date and Initial Term of Sub-Advisory Agreement for each Series** |
| Series | Effective Date | Initial Term |
| Diversified Real Asset Fund - Global Infrastructure | July 31, 2020 | 2 Years |

---

## Ex-99.(D)(5)Q

**<u>PRINCIPAL FUNDS, INC.</u>**

**AMENDED AND RESTATED SUB-ADVISORY AGREEMENT**

**NEWTON INVESTMENT MANAGEMENT NORTH AMERICA, LLC SUB-ADVISED FUND**

AMENDED AND RESTATED SUB-ADVISORY AGREEMENT (the "Agreement") to be effective as of January 1, 2026, by and between PRINCIPAL GLOBAL INVESTORS, LLC, a Delaware limited liability company (the "Manager"), and NEWTON INVESTMENT MANAGEMENT NORTH AMERICA, LLC, a Delaware limited liability company (the "Sub-Advisor").

W I T N E S S E T H:

WHEREAS, the Manager is the manager and investment advisor to each series of Principal Funds, Inc. (the "Fund"), an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"); and

WHEREAS, the Manager desires to retain the Sub-Advisor to render discretionary investment advisory services for all or a portion of the assets of each series of the Fund identified in <u>Appendix A</u> hereto, as may be amended from time to time (the "Series"), which the Manager has agreed to provide to the Fund, and the Sub-Advisor desires to furnish such services; and

WHEREAS, the Manager and the Sub-Advisor agree to amend and restate the Sub-Advisory Agreement between the Manager and the Sub-Advisor dated August 31, 2021 with this Agreement; and

WHEREAS, the Manager has furnished the Sub-Advisor with copies properly certified or authenticated of each of the following and will promptly provide the Sub-Advisor with copies properly certified or authenticated of any amendment or supplement thereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Management Agreement (the "Management Agreement") with the Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Fund's registration statement and financial statements as filed with the Securities and Exchange Commission (the "SEC");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Fund's Articles of Incorporation and By-laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Policies, procedures or instructions adopted or approved by the Board of Directors of the Fund relating to obligations and services to be provided by the Sub-Advisor.

NOW, THEREFORE, in consideration of the premises and the terms and conditions hereinafter set forth, the parties agree as follows:

1.<u>Appointment of Sub-Advisor</u>

In accordance with and subject to the Management Agreement, the Manager hereby appoints the Sub-Advisor to perform the services described in Section 2 below for investment and reinvestment of such portion of the assets of each Series as may be allocated to the Sub-Advisor by the Manager, from time to time (the "Allocated Assets"), subject to the control and direction of the Manager and the Fund's Board of Directors, for the period and on the terms hereinafter set forth. The Sub-Advisor accepts such appointment and agrees to furnish the services hereinafter set forth for the compensation herein provided. The Sub-Advisor shall for all purposes herein be deemed to be an independent contractor and shall, except as expressly provided or authorized, have no authority to act for or represent the Fund or the Manager in any way or otherwise be deemed an agent of the Fund or the Manager.

2.<u>Obligations of and Services to be Provided by the Sub-Advisor</u>

The Sub-Advisor will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Provide investment advisory services, including but not limited to research, advice and supervision for the Allocated Assets of each Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Provide information and assistance to the Manager related to the recommended investment program for each Series, consistent with each Series' respective investment objective and policies and any specific criteria applicable to the Allocated Assets, so the Manager may furnish such information to the Board of Directors of the Fund (or any appropriate committee of such Board) for approval and/or review and update such information from time to time as conditions require.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Implement the approved investment program for the Allocated Assets by placing orders for the purchase and sale of securities without prior consultation with the Manager and without regard to the length of time the securities have been held, the resulting rate of portfolio turnover or any tax considerations, subject always to the provisions of the Fund's registration statement, Articles of Incorporation and Bylaws and the requirements of the 1940 Act, as each of the same shall be from time to time in effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Advise and assist the officers of the Fund, as requested by the officers, in taking such steps as are necessary or appropriate to carry out the decisions of its Board of Directors, and any appropriate committees of such Board, regarding the general conduct of the investment business of each Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Maintain, in connection with the Sub-Advisor's investment advisory services provided to the Allocated Assets, compliance with the 1940 Act and the regulations adopted by the SEC thereunder and the Series' investment strategies and restrictions as stated in the Fund's prospectus and statement of additional information and any specific criteria applicable to the Allocated Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Report to the Board of Directors of the Fund at such times and in such detail as the Board of Directors may reasonably deem appropriate in order to enable it to determine that the investment policies, procedures and approved investment program of each Series (and any specific criteria applicable to the Allocated Assets) are being observed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Upon request, provide assistance and recommendations for the determination of the fair value of certain securities when reliable market quotations are not readily available for purposes of calculating net asset value in accordance with procedures and methods established by the Fund's Board of Directors. Further, the Sub-Advisor will provide security and foreign exchange trade details to the Manager so that the effects of all securities trades entered into by or for a Series are included in the appropriate day's end of day net asset value. Sub-Advisor must also communicate all trade amendments, cancellations or re-books accurately and timely to be included in the daily net asset value of a Series. Rule 2a-4 of the 1940 Act permits registered investment companies to record security transactions as of one day after the trade date for purposes of determining net asset value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Furnish, at its own expense, (i) all necessary investment and management facilities, including salaries of clerical and other personnel required for it to execute its duties faithfully, and (ii) administrative facilities, including bookkeeping, clerical personnel and equipment necessary for the efficient conduct of the investment advisory affairs of each Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Open accounts with Foreign Account Tax Compliance Act compliant broker-dealers, financial counterparties including swap counterparties and futures commission merchants ("broker-dealers"); select broker-dealers to effect all transactions for each Series; place all necessary orders with broker-dealers or issuers (including affiliated broker-dealers); and negotiate commissions, if applicable. To the extent consistent with applicable law, purchase or sell orders for each Series may be aggregated with contemporaneous purchase or sell orders of other clients of the Sub-Advisor. In such event allocation of securities so sold or purchased, as well as the expenses incurred in the transaction, will be made by the Sub-Advisor in the manner the Sub-Advisor considers to be the most equitable and consistent with its fiduciary obligations to the Fund and to other clients. The Sub-Advisor will report on such allocations at the request of the Manager, the Fund or the Fund's Board of Directors providing such information as the number of aggregated trades to which each Series was a party, the broker-dealers to whom such trades were directed and the basis for the allocation for the aggregated trades. The Sub-Advisor shall use its best efforts to obtain execution of transactions for each Series at prices which are advantageous to the Series and at commission rates that are reasonable in relation to the benefits received. However, the Sub-Advisor may select brokers or dealers on the basis that they provide brokerage, research or other services or products to the Sub-Advisor. To the extent consistent with applicable law, the Sub-Advisor may pay a broker or dealer an amount of commission for effecting a securities transaction in excess of the amount of commission or dealer spread another broker or dealer would have charged for effecting that transaction if the Sub-Advisor determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research products and/or services provided by such broker or dealer. This determination, with respect to brokerage and research products and/or services, may be viewed in terms of either that particular transaction or the overall responsibilities which the Sub-Advisor and its affiliates have with respect to each Series as well as to accounts over which they exercise investment discretion. Not all such services or products need be used by the Sub-Advisor in managing the Allocated Assets. In addition, joint repurchase or other accounts may not be utilized by the Series except to the extent permitted under any exemptive order obtained by the Sub-Advisor provided that all conditions of such order are complied with.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)Section 871(m) Transactions: Sub-Advisor shall not on behalf of a Series enter into certain U.S. dividend equivalent payment transactions described in Section 871(m) of the U.S. Internal Revenue Code and the regulations thereunder ("871(m) Transaction") with a foreign counterparty unless: (i) Sub-Advisor adheres to the ISDA 2015 Section 871(m) Protocol on behalf of the Series, and (ii) the foreign counterparty to the 871(m) Transaction provides Sub-Advisor with a properly completed Form W-8IMY certifying to its status as a qualified derivatives dealer ("QDD").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)Maintain all accounts, books and records with respect to the Allocated Assets as are required of an investment advisor of a registered investment company pursuant to the 1940 Act and Investment Advisers Act of 1940, as amended (the "Advisers Act"), and the rules thereunder, and furnish the Fund and the Manager with such periodic and special reports as the Fund or the Manager may reasonably request. In compliance with the requirements of Rule 31a-3 under the 1940 Act, the Sub-Advisor hereby agrees that all records that it maintains for each Series are the property of the Fund, agrees to preserve for the periods described by Rule 31a-2 under the 1940 Act any records that it maintains for the Series and that are required to be maintained by Rule 31a-1 under the 1940 Act, and further agrees to surrender promptly to the Fund any records that it maintains for a Series upon request by the Fund or the Manager. The Sub-Advisor has no responsibility for the maintenance of Fund records except insofar as is directly related to the services the Sub-Advisor provides to a Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)Observe and comply with Rule 17j-1 under the 1940 Act and the Sub-Advisor's Code of Ethics adopted pursuant to that Rule as the same may be amended from time to time. The Manager acknowledges receipt of a copy of the Sub-Advisor's current Code of Ethics. The Sub-Advisor shall promptly forward to the Manager a copy of any material amendment to the Sub-Advisor's Code of Ethics along with certification that the Sub-Advisor has implemented procedures for administering the Sub-Advisor's Code of Ethics.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)From time to time as the Manager or the Fund may request, furnish the requesting party reports on portfolio transactions and reports on investments held by a Series, all in such detail as the Manager or the Fund may reasonably request. The Sub-Advisor will make available its officers and employees to meet with the Fund's Board of Directors at the Fund's principal place of business on due notice to review the investments of a Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)Provide such information as is customarily provided by a sub-advisor, or as may be required or reasonably requested by the Manager, for the Fund or the Manager to comply with their respective obligations under applicable laws, including, without limitation, the Internal Revenue Code of 1986, as amended (the "Code"), the 1940 Act, the Advisers Act, the Securities Act of 1933, as amended (the "Securities Act"), and any state securities laws, and any rule or regulation thereunder. Such information includes, but is not limited to: electronic copies of (i) the Sub-Advisor's compliance manual and policies and procedures adopted to comply with Rules 206(4)-6 and 206(4)-7 of the Advisers Act and (ii) the Sub-Advisor's most recent annual compliance report or a detailed summary of such report; timely, accurate and complete responses to all 15(c) questionnaires; timely, accurate and complete responses to all Quarterly Compliance Questionnaires (including the identification of any material compliance matters and an electronic copy of any material changes to the Sub-Advisor's Rules 206(4)-6 and 206(4)-7 policies and procedures, marked to show changes along with a written summary of the purpose of each such change); Annual Proxy Voting Questionnaires; Annual Best Execution and Soft Dollar Questionnaires, and responses to all other requests from the Manager. The Sub-Advisor agrees to make available for the Manager's review all deficiency letters issued by the SEC together with all responses given by Sub-Advisor to such letters. The Sub-Advisor will advise the Manager of any material changes in the Sub-Advisor's ownership within a reasonable time after any such change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)Vote proxies received on behalf of each Series (with respect to the portion thereof allocated to the Sub-Advisor) in a manner consistent with the Sub-Advisor's proxy voting policies and procedures and provide a record of votes cast containing all of the voting information required by Form N-PX in an electronic format to enable the Series to file Form N-PX as required by SEC rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)Respond to tender offers, rights offerings and other voluntary corporate action requests affecting securities held by each Series (with respect to the portion thereof allocated to the Sub-Advisor).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)Cooperate with the Manager in its performance of quarterly and annual tax compliance tests to monitor the Series' compliance with Subchapter M of the Code and Section 817(h) of the Code. If it is determined by the Manager or its tax advisors that the Series is not in compliance with the requirements imposed by the Code, the Sub-Advisor, in consultation with the Manager and its tax advisors, will take prompt action to bring the Series back into compliance within the time permitted under the Code.

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3.<u>Prohibited Conduct</u>

In providing the services described in this Agreement, the Sub-Advisor will not consult with any other investment advisory firm that provides investment advisory services to any investment company sponsored by Principal Financial Group, Inc. regarding transactions for the Fund in securities or other assets.

4.<u>Compensation</u>

As full compensation for all services rendered and obligations assumed by the Sub-Advisor hereunder with respect to the Allocated Assets, the Manager shall pay the compensation specified in <u>Appendix A</u> to this Agreement.

5.<u>Liability of Sub-Advisor</u>

Neither the Sub-Advisor nor any of its directors, officers, employees, agents or affiliates shall be liable to the Manager, the Fund or its shareholders for any loss suffered by the Manager or the Fund resulting from any error of judgment made in the good faith exercise of the Sub-Advisor's investment discretion in connection with selecting investments for a Series or as a result of the failure by the Manager or any of its affiliates to comply with the terms of this Agreement, except for losses resulting from willful misfeasance, bad faith or gross negligence of, or from reckless disregard of, the duties of the Sub-Advisor or any of its directors, officers, employees, agents, or affiliates.

6.<u>Trade Errors</u>

The Sub-Advisor will notify the Manager of any Trade Error(s), regardless of materiality, promptly upon the discovery of such Trade Error(s) by the Sub-Advisor. Notwithstanding Section 5, the Sub-Advisor shall be liable to the Manager, the Fund or its shareholders for any loss suffered by the Manager or the Fund resulting from Trade Errors due to negligence, misfeasance, or disregard of duties of the Sub Advisor or any of its directors, officers, employees, agents (excluding any broker-dealer selected by the Sub-Advisor), or affiliates. Any gains that occur due to a Trade Error shall be retained by the Fund.

For purposes under this Section 6, a "Trade Error" occurs when a transaction results in an unintended, including an impermissible, result. Examples include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• orders by the Sub-Advisor that result in the purchase or sale of securities or other assets that were not intended to be purchased or sold;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• orders by the Sub-Advisor that result in the purchase or sale of securities or other assets in an unintended amount, which includes price or commission rate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• purchases or sales of securities or other assets that violate the investment limitations or restrictions disclosed in the Fund's registration statement and/or imposed by applicable law, regulation, contract or understanding (calculated at the Sub-Advisor's portfolio level), unless otherwise agreed to in writing.

7.<u>Supplemental Arrangements</u>

The Sub-Advisor may enter into arrangements with other persons affiliated with the Sub-Advisor or with unaffiliated third parties to better enable the Sub-Advisor to fulfill its obligations under this Agreement for the provision of certain personnel and facilities to the Sub-Advisor, subject to written notification to and approval of the Manager and, where required by applicable law, the Board of Directors of the Fund; provided, however, that entry into any such arrangements shall not relieve the Sub-Advisor of any of its obligations under this Agreement.

8.<u>Regulation</u>

The Sub-Advisor shall submit to all regulatory and administrative bodies having jurisdiction over the services provided pursuant to this Agreement any information, reports or other material which any such body may request or require pursuant to applicable laws and regulations.

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9.<u>Duration and Termination of This Agreement</u>

This Agreement shall become effective with respect to a Series as of the corresponding date set forth on <u>Appendix B</u> to this Agreement, as may be amended from time to time, and, unless otherwise terminated with respect to such Series, shall continue in effect thereafter for the initial term set forth on <u>Appendix B</u> to this Agreement, and thereafter from year to year, provided that in each case the continuance is specifically approved within the period required by the 1940 Act either by the Board of Directors of the Fund or by a vote of a majority of the outstanding voting securities of the Series and in either event by a vote of a majority of the Board of Directors of the Fund who are not interested persons of the Manager, Principal Financial Group, Inc., the Sub-Advisor or the Fund cast in accordance with the requirements of the 1940 Act after taking into effect any exemptive order, no-action assurances or other relief, rule or regulation upon which the Fund may rely.

If the shareholders of a Series fail to approve the Agreement or any continuance of the Agreement in accordance with the requirements of the 1940 Act, the Sub-Advisor will continue to act as Sub-Advisor with respect to the Allocated Assets of such Series pending the required approval of the Agreement or its continuance or of any contract with the Sub-Advisor or a different manager or sub-advisor or other definitive action; provided, that the compensation received by the Sub-Advisor in respect to the Allocated Assets of such Series during such period is in compliance with Rule 15a-4 under the 1940 Act.

This Agreement may be terminated with respect to a Series at any time without the payment of any penalty by the Board of Directors of the Fund or by the Sub-Advisor, the Manager or by vote of a majority of the outstanding voting securities of the Series on sixty days' written notice. This Agreement shall automatically terminate in the event of its assignment. In interpreting the provisions of this Section 9, the definitions contained in Section 2(a) of the 1940 Act (particularly the definitions of "interested person," "assignment," "voting security" and "majority of the outstanding voting securities") shall be applied.

10.<u>Amendment of this Agreement</u>

No amendment of this Agreement shall be effective unless in writing and signed by both parties. No material amendment of this Agreement shall be effective until approved, if required by the 1940 Act or the rules, regulations, interpretations or orders issued thereunder, by vote of the holders of a majority of the outstanding voting securities of the Series (as defined in the 1940 Act) and by vote of a majority of the Board of Directors of the Fund who are not interested persons (as defined in the 1940 Act) of the Manager, the Sub-Advisor, Principal Financial Group, Inc. or the Fund cast in accordance with the requirements of the 1940 Act after taking into effect any exemptive order, no-action assurances or other relief, rule or regulation upon which the Fund may rely.

11.<u>Additional Series</u>

In the event the Manager wishes to appoint the Sub-Advisor to perform the services described in this Agreement with respect to one or more additional Series of the Fund after the effective date of this Agreement, such Series will become a Series under this Agreement upon approval of this Agreement in the manner required by the 1940 Act and the amendment of <u>Appendices</u> <u>A</u> and <u>B</u> hereto.

12.<u>General Provisions</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;&nbsp;&nbsp;&nbsp;Each party agrees to perform such further acts and execute such further documents as are necessary to effectuate the purposes hereof. This Agreement shall be construed and enforced in accordance with and governed by the laws of the State of Iowa. The captions in this Agreement are included for convenience only and in no way define or delimit any of the provisions hereof or otherwise affect their construction or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any notice under this Agreement shall be in writing, addressed and delivered or mailed postage pre-paid to the other party at such address as such other party may designate for the receipt of such notices. Until further notice to the other party, it is agreed that the address of the Manager for this purpose shall be Principal Financial Group, Des Moines, Iowa 50392-0200. The address of the Sub-Advisor for this purpose shall be 201 Washington St., Boston, MA, 02108.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Sub-Advisor will promptly notify the Manager in writing of the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.the Sub-Advisor fails to be registered as an investment advisor under the Advisers Act or under the laws of any jurisdiction in which the Sub-Advisor is required to be registered as an investment advisor in order to perform its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.the Sub-Advisor is served or otherwise receives notice of any action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, involving the affairs of a Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.the Sub-Advisor becomes aware of any pending action, suit, proceeding, inquiry or investigation that is reasonably likely to result in a conviction, order, judgment or decree issued with respect to it that could reasonably be expected to result in the Sub-Advisor becoming ineligible to serve as an investment advisor of a registered investment company under the 1940 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.the Sub-Advisor becomes aware of a transaction or series of transactions that is reasonably likely to result in a change in the management or control of the Sub-Advisor or a controlling person thereof or otherwise in the assignment (as defined in the 1940 Act) of this Agreement by the Sub-Advisor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Manager shall provide (or cause the Series custodian to provide) timely information to the Sub-Advisor regarding such matters as the composition of the assets of a Series, cash requirements and cash available for investment in a Series, and all other reasonable information as may be necessary for the Sub-Advisor to perform its duties and responsibilities hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The Sub-Advisor acknowledges Manager's representation that the Diversified Real Asset Fund series does not rely on the exclusion from the definition of "commodity pool operator" under Section 4.5 of the General Regulations under the Commodity Exchange Act, as amended (the "CEA").

&nbsp;&nbsp;&nbsp;&nbsp;The Sub-Advisor represents that it (i) is a commodity trading advisor duly registered with the Commodity Futures Trading Commission (the "CFTC") and is a member in good standing of the National Futures Association (the "NFA") or (ii) is relying on an exemption from registration as a commodity trading advisor or (iii) is not trading commodity instruments that would subject the Sub-Advisor to register as a commodity trading advisor with the CFTC. As applicable, the Sub-Advisor shall either (i) maintain such registration and membership in good standing or (ii)continue to qualify for an exemption from registration as a commodity trading advisor or (iii) not trade commodity instruments that would subject the Sub-Advisor to so register during the term of this Agreement. Further, the Sub-Advisor agrees to notify the Manager, if applicable, within a commercially reasonable time upon (i) a statutory disqualification of the SubAdvisor under Sections 8a(2) or 8a(3) of the CEA, (ii) a suspension, revocation or limitation of the Sub-Advisor's commodity trading advisor registration or NFA membership, or (iii) the institution of an action or proceeding that would reasonably be expected to lead to a statutory disqualification under the CEA or an investigation by any governmental agency or selfregulatory organization relating to Sub-Advisor's registration as a commodity trading advisor, in each case, subject to applicable law, attorney-client privilege and confidentiality restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)The Sub-Advisor represents that it will not enter into any agreement, oral or written, or other understanding under which the Fund directs or is expected to direct portfolio securities transactions, or any remuneration, to a broker or dealer in consideration for the promotion or sale of Fund shares or shares issued by any other registered investment company. The Sub-Advisor further represents that it is contrary to the Sub-Advisor's policies to permit those who select brokers or dealers for execution of Fund portfolio securities transactions to take into account the broker's or dealer's promotion or sale of Fund shares or shares issued by any other registered investment company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)The Sub-Advisor agrees that neither it nor any of its affiliates will in any way refer to its relationship with the Fund, the Series, or the Manager or any of their respective affiliates in offering, marketing or other promotional materials without the express written consent of the Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)This Agreement contains the entire understanding and agreement of the parties.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Each party agrees that electronic signatures of the parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means any electronic sound, symbol, or process attached to or logically associated with a record and executed and adopted by a party with the intent to sign such record, including facsimile or email electronic signatures.

***PURSUANT TO AN EXEMPTION FROM THE COMMODITY FUTURES TRADING COMMISSION IN CONNECTION WITH ACCOUNTS OF QUALIFIED ELIGIBLE PERSONS, THIS BROCHURE OR ACCOUNT DOCUMENT IS NOT REQUIRED TO BE, AND HAS NOT BEEN, FILED WITH THE COMMISSION. THE COMMODITY FUTURES TRADING COMMISSION DOES NOT PASS UPON THE MERITS OF PARTICIPATING IN A TRADING PROGRAM OR UPON THE ADEQUACY OR ACCURACY OF COMMODITY TRADING ADVISOR DISCLOSURE. CONSEQUENTLY, THE COMMODITY FUTURES TRADING COMMISSION HAS NOT REVIEWED OR APPROVED THIS TRADING PROGRAM OR THIS BROCHURE OR ACCOUNT DOCUMENT.***

*Remainder of Page Intentionally Blank*

------

IN WITNESS WHEREOF, the parties have duly executed this Agreement on the date first above written.

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| | |
|:---|:---|
| **PRINCIPAL GLOBAL INVESTORS, LLC** | **PRINCIPAL GLOBAL INVESTORS, LLC** |
| By: | /s/ Laura B. Latham |
| Name: | Laura B. Latham |
| Title: | Assistant General Counsel |
| By: | /s/ John L. Sullivan |
| Name: | John L. Sullivan |
| Title: | Assistant General Counsel |
| **NEWTON INVESTMENT MANAGEMENT NORTH AMERICA, LLC** | **NEWTON INVESTMENT MANAGEMENT NORTH AMERICA, LLC** |
| By: | /s/ John Porter |
| Name: | John Porter |
| Title: | CIO |

---

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**<u>APPENDIX A</u>**

Intentionally Omitted

------

**<u>APPENDIX B</u>**

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| | | |
|:---|:---|:---|
| **Effective Date and Initial Term of Sub-Advisory Agreement for each Series** | **Effective Date and Initial Term of Sub-Advisory Agreement for each Series** | **Effective Date and Initial Term of Sub-Advisory Agreement for each Series** |
| **Series** | **Effective Date** | **Initial Term** |
| Diversified Real Asset Fund | August 31, 2021 | 2 Years |

---

## Ex-99.(D)(5)R

**<u>PRINCIPAL FUNDS, INC.</u>**

**AMENDED AND RESTATED SUB-ADVISORY AGREEMENT**

**NOMURA INVESTMENTS FUND ADVISERS**

**SUB-ADVISED FUND**

AMENDED AND RESTATED SUB-ADVISORY AGREEMENT (the "Agreement") to be effective as of January 1, 2026, by and between PRINCIPAL GLOBAL INVESTORS, LLC, a Delaware limited liability company (the "Manager"), and NOMURA INVESTMENTS FUND ADVISERS, a series of Nomura Investment Management Business Trust (the "Sub-Advisor").

W I T N E S S E T H:

WHEREAS, the Manager is the manager and investment advisor to each series of Principal Funds, Inc. (the "Fund"), an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"); and

WHEREAS, the Manager desires to retain the Sub-Advisor to render discretionary investment advisory services for all or a portion of the assets of each series of the Fund identified in <u>Appendix A</u> hereto, as may be amended from time to time (the "Series"), which the Manager has agreed to provide to the Fund, and the Sub-Advisor desires to furnish such services; and

WHEREAS, the Manager and the Sub-Advisor agree to amend and restate the Sub-Advisory Agreement between the Manager and the Sub-Advisor dated December 1, 2025 with this Agreement; and

WHEREAS, the Manager has furnished the Sub-Advisor with copies properly certified or authenticated of each of the following and will promptly provide the Sub-Advisor with copies properly certified or authenticated of any amendment or supplement thereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Management Agreement (the "Management Agreement") with the Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Fund's registration statement and financial statements as filed with the Securities and Exchange Commission (the "SEC");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Fund's Articles of Incorporation and By-laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Policies, procedures or instructions adopted or approved by the Board of Directors of the Fund relating to obligations and services to be provided by the Sub-Advisor.

NOW, THEREFORE, in consideration of the premises and the terms and conditions hereinafter set forth, the parties agree as follows:

1.<u>Appointment of Sub-Advisor</u>

In accordance with and subject to the Management Agreement, the Manager hereby appoints the Sub-Advisor to perform the services described in <u>Section 2</u> below for investment and reinvestment of such portion of the assets of each Series as may be allocated to the Sub-Advisor by the Manager, from time to time (the "Allocated Assets"), subject to the control and direction of the Manager and the Fund's Board of Directors, for the period and on the terms hereinafter set forth. The Sub-Advisor accepts such appointment and agrees to furnish the services hereinafter set forth for the compensation herein provided. The Sub-Advisor shall for all purposes herein be deemed to be an independent contractor and shall, except as expressly provided or authorized, have no authority to act for or represent the Fund or the Manager in any way or otherwise be deemed an agent of the Fund or the Manager.

2.<u>Obligations of and Services to be Provided by the Sub-Advisor</u>

The Sub-Advisor will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Provide investment advisory services, including but not limited to research, advice and supervision for the Allocated Assets of each Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Provide information and assistance to the Manager related to the recommended investment program for each Series, consistent with each Series' respective investment objective and policies and any specific criteria applicable to the Allocated Assets, so the Manager may furnish such information to the Board of Directors of the Fund (or any appropriate committee of such Board) for approval and/or review, and update such information from time to time as conditions require.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Implement the approved investment program for the Allocated Assets by placing orders for the purchase and sale of securities without prior consultation with the Manager and without regard to the length of time the securities have been held, the resulting rate of portfolio turnover or any tax considerations, subject always to the provisions of the Fund's registration statement, Articles of Incorporation and Bylaws and the requirements of the 1940 Act, as each of the same shall be from time to time in effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Advise and assist the officers of the Fund, as requested by the officers, in taking such steps as are necessary or appropriate to carry out the decisions of its Board of Directors, and any appropriate committees of such Board, regarding the general conduct of the investment business of each Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Maintain, in connection with the Sub-Advisor's investment advisory services provided to the Allocated Assets, compliance with the 1940 Act and the regulations adopted by the SEC thereunder and the Series' investment strategies and restrictions as stated in the Fund's prospectus and statement of additional information and any specific criteria applicable to the Allocated Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Report to the Board of Directors of the Fund at such times and in such detail as the Board of Directors may reasonably deem appropriate in order to enable it to determine that the investment policies, procedures and approved investment program of each Series (and any specific criteria applicable to the Allocated Assets) are being observed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Upon request, provide assistance and recommendations for the determination of the fair value of certain securities when reliable market quotations are not readily available for purposes of calculating net asset value in accordance with procedures and methods established by the Fund's Board of Directors. Further, the Sub-Advisor will provide security and foreign exchange trade details for trades executed by the Sub-Advisor to the Manager so that the effects of all securities trades entered into by or for a Series are included in the appropriate day's end of day net asset value. Sub-Advisor must also communicate all trade amendments, cancellations or re-books accurately and timely to be included in the daily net asset value of a Series. Rule 2a-4 of the 1940 Act permits registered investment companies to record security transactions as of one day after the trade date for purposes of determining net asset value.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Furnish, at its own expense, (i) all necessary investment and management facilities, including salaries of clerical and other personnel required for it to execute its duties faithfully, and (ii) administrative facilities, including bookkeeping, clerical personnel and equipment necessary for the efficient conduct of the investment advisory affairs of each Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Open accounts with Foreign Account Tax Compliance Act compliant broker-dealers, financial counterparties including swap counterparties and futures commission merchants ("broker-dealers"); select broker-dealers to effect all transactions for each Series; place all necessary orders with broker-dealers or issuers (including affiliated broker-dealers); and negotiate commissions, if applicable. To the extent consistent with applicable law, purchase or sell orders for each Series may be aggregated with contemporaneous purchase or sell orders of other clients of the Sub-Advisor. In such event allocation of securities so sold or purchased, as well as the expenses incurred in the transaction, will be made by the Sub-Advisor in the manner the Sub-Advisor considers to be the most equitable and consistent with its fiduciary obligations to the Fund and to other clients. The Sub-Advisor will report on such allocations at the request of the Manager, the Fund or the Fund's Board of Directors providing such information as the number of aggregated trades to which each Series was a party, the broker-dealers to whom such trades were directed and the basis for the allocation for the aggregated trades. The Sub-Advisor shall use its best efforts to obtain execution of transactions for each Series at prices which are advantageous to the Series and at commission rates that are reasonable in relation to the benefits received. However, the Sub-Advisor may select brokers or dealers on the basis that they provide brokerage, research or other services or products to the Sub-Advisor. To the extent consistent with applicable law, the Sub-Advisor may pay a broker or dealer an amount of commission for effecting a securities transaction in excess of the amount of commission or dealer spread another broker or dealer would have charged for effecting that transaction if the Sub-Advisor determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research products and/or services provided by such broker or dealer. This determination, with respect to brokerage and research products and/or services, may be viewed in terms of either that particular transaction or the overall responsibilities which the Sub-Advisor and its affiliates have with respect to each Series as well as to accounts over which they exercise investment discretion. Not all such services or products need be used by the Sub-Advisor in managing the Allocated Assets. In addition, joint repurchase or other accounts may not be utilized by the Series except to the extent permitted under any exemptive order obtained by the Sub-Advisor provided that all conditions of such order are complied with.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)Section 871(m) Transactions: Sub-Advisor shall not on behalf of a Series enter into certain U.S. dividend equivalent payment transactions described in Section 871(m) of the U.S. Internal Revenue Code and the regulations thereunder ("871(m) Transaction") with a foreign counterparty unless: (i) Sub-Advisor adheres to the ISDA 2015 Section 871(m) Protocol on behalf of the Series, and (ii) the foreign counterparty to the 871(m) Transaction provides Sub-Advisor with a properly completed Form W-8IMY certifying to its status as a qualified derivatives dealer ("QDD").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)Maintain all accounts, books and records with respect to the Allocated Assets as are required of an investment advisor of a registered investment company pursuant to the 1940 Act and Investment Advisers Act of 1940, as amended (the "Advisers Act"), and the rules thereunder, and furnish the Fund and the Manager with such periodic and special reports as the Fund or the Manager may reasonably request. In compliance with the requirements of Rule 31a-3 under the 1940 Act, the Sub-Advisor hereby agrees that all records that it maintains for each Series are the property of the Fund, agrees to preserve for the periods described by Rule 31a-2 under the 1940 Act any records that it maintains for the Series and that are required to be maintained by Rule 31a-1 under the 1940 Act, and further agrees to surrender promptly to the Fund any records that it maintains for a Series upon request by the Fund or the Manager. The Sub-Advisor has no responsibility for the maintenance of Fund records except insofar as is directly related to the services the Sub-Advisor provides to a Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)Observe and comply with Rule 17j-1 under the 1940 Act and the Sub-Advisor's Code of Ethics adopted pursuant to that Rule as the same may be amended from time to time. The Manager acknowledges receipt of a copy of the Sub-Advisor's current Code of Ethics. The Sub-Advisor shall promptly forward to the Manager a copy of any material amendment to the Sub-Advisor's Code of Ethics along with certification that the Sub-Advisor has implemented procedures for administering the Sub-Advisor's Code of Ethics.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)From time to time as the Manager or the Fund may request, furnish the requesting party reports on portfolio transactions and reports on investments held by a Series, all in such detail as the Manager or the Fund may reasonably request. The Sub-Advisor will make available its officers and employees to meet with the Fund's Board of Directors at the Fund's principal place of business on due notice to review the investments of a Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)Provide such information as is customarily provided by a sub-advisor, or as may be required or reasonably requested by the Manager, for the Fund or the Manager to comply with their respective obligations under applicable laws, including, without limitation, the Internal Revenue Code of 1986, as amended (the "Code"), the 1940 Act, the Advisers Act, the Securities Act of 1933, as amended (the "Securities Act"), and any state securities laws, and any rule or regulation thereunder. Such information includes, but is not limited to: electronic copies of (i) the Sub-Advisor's compliance manual and policies and procedures adopted to comply with Rules 206(4)-6 and 206(4)-7 of the Advisers Act and (ii) the Sub-Advisor's most recent annual compliance report or a detailed summary of such report; timely, accurate and complete responses to all 15(c) questionnaires; timely, accurate and complete responses to all Quarterly Compliance Questionnaires (including the identification of any material compliance matters and an electronic copy of any material changes to the Sub-Advisor's Rules 206(4)-6 and 206(4)-7 policies and procedures, marked to show changes along with a written summary of the purpose of each such change); Annual Proxy Voting Questionnaires; Annual Best Execution and Soft Dollar Questionnaires, and responses to all other requests from the Manager. The Sub-Advisor agrees to make available for the Manager's review all deficiency letters issued by the SEC together with all responses given by Sub-Advisor to such letters. The Sub-Advisor will advise the Manager of any material changes in the Sub-Advisor's ownership within a reasonable time after any such change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)Vote proxies received on behalf of each Series (with respect to the portion thereof allocated to the Sub-Advisor) in a manner consistent with the Sub-Advisor's proxy voting policies and procedures and provide a record of votes cast containing all of the voting information required by Form N-PX in an electronic format to enable the Series to file Form N-PX as required by SEC rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)Respond to tender offers, rights offerings and other voluntary corporate action requests affecting securities held by each Series (with respect to the portion thereof allocated to the Sub-Advisor).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)Cooperate with the Manager in its performance of quarterly and annual tax compliance tests to monitor the Series' compliance with Subchapter M of the Code and Section 817(h) of the Code. If it is determined by the Manager or its tax advisors that the Series is not in compliance with the requirements imposed by the Code, the Sub-Advisor, in consultation with the Manager and its tax advisors, will take prompt action to bring the Series back into compliance within the time permitted under the Code.

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3.<u>Prohibited Conduct</u>

In providing the services described in this Agreement, the Sub-Advisor will not consult with any other investment advisory firm that provides investment advisory services to any investment company sponsored by Principal Financial Group, Inc. regarding transactions for the Fund in securities or other assets.

4.<u>Compensation</u>

As full compensation for all services rendered and obligations assumed by the Sub-Advisor hereunder with respect to the Allocated Assets, the Manager shall pay the compensation specified in <u>Appendix A</u> to this Agreement.

5.<u>Liability of Sub-Advisor</u>

Neither the Sub-Advisor nor any of its directors, officers, employees, agents or affiliates shall be liable to the Manager, the Fund or its shareholders for any loss suffered by the Manager or the Fund resulting from any error of judgment made in the good faith exercise of the Sub-Advisor's investment discretion in connection with selecting investments for a Series or as a result of the failure by the Manager or any of its affiliates to comply with the terms of this Agreement, except for losses resulting from willful misfeasance, bad faith or gross negligence of, or from reckless disregard of, the duties of the Sub-Advisor or any of its directors, officers, employees, agents, or affiliates.

6.<u>Trade Errors</u>

The Sub-Advisor will notify the Manager of any Trade Error(s), regardless of materiality, promptly upon the discovery of such Trade Error(s) by the Sub-Advisor. Notwithstanding <u>Section 5</u>, the Sub-Advisor shall be liable to the Manager, the Fund or its shareholders for any loss suffered by the Manager or the Fund resulting from Trade Errors due to negligence, misfeasance, or disregard of duties of the Sub Advisor or any of its directors, officers, employees, agents (excluding any broker-dealer selected by the Sub-Advisor), or affiliates. Any gains that occur due to a Trade Error shall be retained by the Fund.

For purposes under this <u>Section 6</u>, a "Trade Error" occurs when a transaction results in an unintended, including an impermissible, result. Examples include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• orders by the Sub-Advisor that result in the purchase or sale of securities or other assets that were not intended to be purchased or sold;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• orders by the Sub-Advisor that result in the purchase or sale of securities or other assets in an unintended amount, which includes price or commission rate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• purchases or sales of securities or other assets that violate the investment limitations or restrictions disclosed in the Fund's registration statement and/or imposed by applicable law, regulation, contract or understanding (calculated at the Sub-Advisor's portfolio level), unless otherwise agreed to in writing.

7.<u>Supplemental Arrangements</u>

The Sub-Advisor may enter into arrangements with other persons affiliated with the Sub-Advisor or with unaffiliated third parties to better enable the Sub-Advisor to fulfill its obligations under this Agreement for the provision of certain personnel and facilities to the Sub-Advisor, subject to written notification to and approval of the Manager and, where required by applicable law, the Board of Directors of the Fund; provided, however, that entry into any such arrangements shall not relieve the Sub-Advisor of any of its obligations under this Agreement.

8.<u>Regulation</u>

The Sub-Advisor shall submit to all regulatory and administrative bodies having jurisdiction over the services provided pursuant to this Agreement any information, reports or other material which any such body may request or require pursuant to applicable laws and regulations.

9.<u>Duration and Termination of This Agreement</u>

This Agreement shall become effective with respect to a Series as of the corresponding date set forth on <u>Appendix B</u> to this Agreement, as may be amended from time to time, and, unless otherwise terminated with respect to such Series, shall continue in effect thereafter for the initial term set forth on <u>Appendix B</u> to this Agreement, and thereafter from year to year, provided that in each case the continuance is specifically approved within the period required by the 1940 Act either by the Board of Directors of the Fund or by a vote of a majority of the outstanding voting securities of the Series and in either event by a vote of a majority of the Board of Directors of the Fund who are not interested persons of the Manager, Principal Financial Group, Inc., the Sub-Advisor or the Fund cast in accordance with the requirements of the 1940 Act after taking into effect any exemptive order, no-action assurances or other relief, rule or regulation upon which the Fund may rely.

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If the shareholders of a Series fail to approve the Agreement or any continuance of the Agreement in accordance with the requirements of the 1940 Act, the Sub-Advisor will continue to act as Sub-Advisor with respect to the Allocated Assets of such Series pending the required approval of the Agreement or its continuance or of any contract with the Sub-Advisor or a different manager or sub-advisor or other definitive action; provided, that the compensation received by the Sub-Advisor in respect to the Allocated Assets of such Series during such period is in compliance with Rule 15a-4 under the 1940 Act.

This Agreement may be terminated with respect to a Series at any time without the payment of any penalty by the Board of Directors of the Fund or by the Sub-Advisor, the Manager or by vote of a majority of the outstanding voting securities of the Series on sixty days' written notice. This Agreement shall automatically terminate in the event of its assignment. In interpreting the provisions of this <u>Section 9</u>, the definitions contained in Section 2(a) of the 1940 Act (particularly the definitions of "interested person," "assignment," "voting security" and "majority of the outstanding voting securities") shall be applied.

10.<u>Amendment of this Agreement</u>

No amendment of this Agreement shall be effective unless in writing and signed by both parties. No material amendment of this Agreement shall be effective until approved, if required by the 1940 Act or the rules, regulations, interpretations or orders issued thereunder, by vote of the holders of a majority of the outstanding voting securities of the Series (as defined in the 1940 Act) and by vote of a majority of the Board of Directors of the Fund who are not interested persons (as defined in the 1940 Act) of the Manager, the Sub-Advisor, Principal Financial Group, Inc. or the Fund cast in accordance with the requirements of the 1940 Act after taking into effect any exemptive order, no-action assurances or other relief, rule or regulation upon which the Fund may rely.

11.<u>Additional Series</u>

In the event the Manager wishes to appoint the Sub-Advisor to perform the services described in this Agreement with respect to one or more additional Series of the Fund after the effective date of this Agreement, such Series will become a Series under this Agreement upon approval of this Agreement in the manner required by the 1940 Act and the amendment of <u>Appendices A</u> and <u>B</u> hereto.

12.<u>General Provisions</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Each party agrees to perform such further acts and execute such further documents as are necessary to effectuate the purposes hereof. This Agreement shall be construed and enforced in accordance with and governed by the laws of the State of Iowa. The captions in this Agreement are included for convenience only and in no way define or delimit any of the provisions hereof or otherwise affect their construction or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any notice under this Agreement shall be in writing, addressed and delivered or mailed postage pre-paid to the other party at such address as such other party may designate for the receipt of such notices; or (ii) by electronic mail to the address of the party specified below or such other address as either party may specify in writing. Until further notice to the other party, it is agreed that the address of the Manager for this purpose shall be Principal Financial Group, Des Moines, Iowa 50392-0200, Email: shaikh.adam@principal.com, and the address of the Sub-Advisor for this purpose shall be:

Nomura Investments Fund Advisers, a series of

Nomura Investment Management Business Trust

Attention:&nbsp;&nbsp;&nbsp;&nbsp;Brad Frishberg

Telephone:&nbsp;&nbsp;&nbsp;&nbsp;(646) 315-2099

E-mail:&nbsp;&nbsp;&nbsp;&nbsp;<u>brad.frishberg@nomura.com</u>

With a copy to:

David Connor, General Counsel

E-Mail:&nbsp;&nbsp;&nbsp;&nbsp;<u>David.Connor@nomura.com</u>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Sub-Advisor will promptly notify the Manager in writing of the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Sub-Advisor fails to be registered as an investment advisor under the Advisers Act or under the laws of any jurisdiction in which the Sub-Advisor is required to be registered as an investment advisor in order to perform its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.the Sub-Advisor is served or otherwise receives notice of any action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, involving the affairs of a Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.the Sub-Advisor becomes aware of any pending or threatened action, suit, proceeding, inquiry or investigation that is reasonably likely to result in a conviction, order, judgment or decree issued with respect to it or any affiliate that could reasonably be expected to result in the Sub-Advisor becoming ineligible to serve as an investment advisor of a registered investment company under the 1940 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.the Sub-Advisor becomes aware of a transaction or series of transactions that is reasonably likely to result in a change in the management or control of the Sub-Advisor or a controlling person thereof or otherwise in the assignment (as defined in the 1940 Act) of this Agreement by the Sub-Advisor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Manager shall provide (or cause the Series custodian to provide) timely information to the Sub-Advisor regarding such matters as the composition of the assets of a Series, cash requirements and cash available for investment in a Series, and all other reasonable information as may be necessary for the Sub-Advisor to perform its duties and responsibilities hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The Sub-Advisor acknowledges Manager's representation that the Diversified Real Asset Fund series does not rely on the exclusion from the definition of "commodity pool operator" under Section 4.5 of the General Regulations under the Commodity Exchange Act, as amended (the "CEA").

&nbsp;&nbsp;&nbsp;&nbsp;The Sub-Advisor represents that it (i) is a commodity trading advisor duly registered with the Commodity Futures Trading Commission (the "CFTC") and is a member in good standing of the National Futures Association (the "NFA") or (ii) is relying on an exemption from registration as a commodity trading advisor or (iii) is not trading commodity instruments that would subject the Sub-Advisor to register as a commodity trading advisor with the CFTC. As applicable, the Sub-Advisor shall either (i) maintain such registration and membership in good standing or (ii) continue to qualify for an exemption from registration as a commodity trading advisor or (iii) not trade commodity instruments that would subject the Sub-Advisor to so register during the term of this Agreement. Further, the Sub-Advisor agrees to notify the Manager, if applicable, within a commercially reasonable time upon (i) a statutory disqualification of the SubAdvisor under Sections 8a(2) or 8a(3) of the CEA, (ii) a suspension, revocation or limitation of the Sub-Advisor's commodity trading advisor registration or NFA membership, or (iii) the institution of an action or proceeding that would reasonably be expected to lead to a statutory disqualification under the CEA or an investigation by any governmental agency or selfregulatory organization relating to Sub-Advisor's registration as a commodity trading advisor, in each case, subject to applicable law, attorney-client privilege and confidentiality restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)The Sub-Advisor represents that it will not enter into any agreement, oral or written, or other understanding under which the Fund directs or is expected to direct portfolio securities transactions, or any remuneration, to a broker or dealer in consideration for the promotion or sale of Fund shares or shares issued by any other registered investment company. The Sub-Advisor further represents that it is contrary to the Sub-Advisor's policies to permit those who select brokers or dealers for execution of Fund portfolio securities transactions to take into account the broker's or dealer's promotion or sale of Fund shares or shares issued by any other registered investment company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)The Sub-Advisor agrees that neither it nor any of its affiliates will in any way refer to its relationship with the Fund, the Series, or the Manager or any of their respective affiliates in offering, marketing or other promotional materials without the express written consent of the Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)This Agreement contains the entire understanding and agreement of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Each party agrees that electronic signatures of the parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means any electronic sound, symbol, or process attached to or logically associated with a record and executed and adopted by a party with the intent to sign such record, including facsimile or email electronic signatures.

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***PURSUANT TO AN EXEMPTION FROM THE COMMODITY FUTURES TRADING COMMISSION IN CONNECTION WITH ACCOUNTS OF QUALIFIED ELIGIBLE PERSONS, THIS AGREEMENT IS NOT REQUIRED TO BE, AND HAS NOT BEEN, FILED WITH THE COMMISSION. THE COMMODITY FUTURES TRADING COMMISSION DOES NOT PASS UPON THE MERITS OF PARTICIPATING IN ANY TRADING PROGRAM OR UPON THE ADEQUACY OR ACCURACY OF COMMODITY TRADING ADVISOR DISCLOSURE. CONSEQUENTLY, THE COMMODITY FUTURES TRADING COMMISSION HAS NOT REVIEWED OR APPROVED ANY TRADING PROGRAM OF THE ADVISOR OR THIS AGREEMENT.***

*Remainder of Page Intentionally Blank*

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IN WITNESS WHEREOF, the parties have duly executed this Agreement on the date first above written.

---

| | |
|:---|:---|
| **PRINCIPAL GLOBAL INVESTORS, LLC** | **PRINCIPAL GLOBAL INVESTORS, LLC** |
| By: | /s/ Laura B. Latham |
| Name: | Laura B. Latham |
| Title: | Assistant General Counsel |
| By: | /s/ John L. Sullivan |
| Name: | John L. Sullivan |
| Title: | Assistant General Counsel |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NOMURA INVESTMENTS FUND ADVISERS,**<br>a series of Nomura Investment Management Business Trust | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**NOMURA INVESTMENTS FUND ADVISERS,**<br>a series of Nomura Investment Management Business Trust |
| By: | /s/ Susan L. Natalini |
| Name: | Susan L. Natalini |
| Title: | Managing Director |

---

------

**<u>APPENDIX A</u>**

Intentionally Omitted

------

**<u>APPENDIX B</u>**

---

| | | |
|:---|:---|:---|
| **Effective Date and Initial Term of Sub-Advisory Agreement for each Series** | **Effective Date and Initial Term of Sub-Advisory Agreement for each Series** | **Effective Date and Initial Term of Sub-Advisory Agreement for each Series** |
| **Series** | **Effective Date** | **Initial Term** |
| Diversified Real Asset Fund | 12/01/2025 | 2 Years |

---

## Ex-99.(D)(5)U

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

**<u>PRINCIPAL FUNDS, INC.</u>**

**SUB-ADVISORY AGREEMENT**

**PINEBRIDGE INVESTMENTS LLC SUB-ADVISED FUND**

SUB-ADVISORY AGREEMENT (the "Agreement") to be effective as of December 30, 2025 by and between PRINCIPAL GLOBAL INVESTORS, LLC, a Delaware limited liability company (the "Manager"), and PINEBRIDGE INVESTMENTS LLC, a Delaware limited liability company (the "Sub-Advisor").

W I T N E S S E T H:

WHEREAS, the Manager is the manager and investment advisor to each series of Principal Funds, Inc. (the "Fund"), an open-end management investment company registered under the Investment Company Act of 1940, as amended (the "1940 Act"); and

WHEREAS, the Manager desires to retain the Sub-Advisor to render discretionary investment advisory services for all or a portion of the assets of each series of the Fund identified in <u>Appendix A</u> hereto, as may be amended from time to time (the "Series"), which the Manager has agreed to provide to the Fund, and the Sub-Advisor desires to furnish such services; and

&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, the Manager has furnished the Sub-Advisor with copies properly certified or authenticated of each of the following and will promptly provide the Sub-Advisor with copies properly certified or authenticated of any amendment or supplement thereto:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Management Agreement (the "Management Agreement") between the Manager and the Fund;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)The Fund's registration statement, relevant Series summary prospectus(es), and financial statements as filed with the Securities and Exchange Commission (the "SEC");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Fund's Articles of Incorporation and By-laws;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Policies, procedures or instructions adopted or approved by the Board of Directors of the Fund relating to obligations and services to be provided by the Sub-Advisor.

NOW, THEREFORE, in consideration of the premises and the terms and conditions hereinafter set forth, the parties agree as follows:

1.<u>Appointment of Sub-Advisor</u>

In accordance with and subject to the Management Agreement, the Manager hereby appoints the Sub-Advisor to perform the services described in <u>Section 2</u> below for investment and reinvestment of such portion of the assets of each Series as may be allocated to the Sub-Advisor by the Manager, from time to time (the "Allocated Assets"), subject to the control and direction of the Manager and the Fund's Board of Directors, for the period and on the terms hereinafter set forth. The Sub-Advisor accepts such appointment and agrees to furnish the services hereinafter set forth for the compensation herein provided. The Sub-Advisor shall for all purposes herein be deemed to be an independent contractor and shall, except as expressly provided or authorized, have no authority to act for or represent the Fund or the Manager in any way or otherwise be deemed an agent of the Fund or the Manager.

2.<u>Obligations of and Services to be Provided by the Sub-Advisor</u>

The Sub-Advisor will:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Provide investment advisory services, including but not limited to research, advice and supervision for the Allocated Assets of each Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Furnish to the Board of Directors of the Fund for approval (or any appropriate committee of such Board), and revise from time to time as conditions require, a recommended investment program for each Series consistent with each Series' respective investment objective(s) and policies and any specific criteria applicable to the Allocated Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)Implement the approved investment program for the Allocated Assets by placing orders for the purchase and sale of securities without prior consultation with the Manager and without regard to the length of time the securities have been held, the resulting rate of portfolio turnover or any tax considerations, subject always to the provisions of the Fund's registration statement, Articles of Incorporation and Bylaws and the requirements of the 1940 Act, as each of the same shall be from time to time in effect.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)Advise and assist the officers of the Fund, as requested by the officers, in taking such steps as are necessary or appropriate to carry out the decisions of its Board of Directors, and any appropriate committees of such Board, regarding the general conduct of the investment business of each Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)Maintain, in connection with the Sub-Advisor's investment advisory services provided to the Allocated Assets, compliance with the 1940 Act and the regulations adopted by the SEC thereunder and the Series' investment strategies and restrictions as stated in the Fund's prospectus and statement of additional information and any specific criteria applicable to the Allocated Assets.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)Report to the Board of Directors of the Fund at such times and in such detail as the Board of Directors may reasonably deem appropriate in order to enable it to determine that the investment policies, procedures and approved investment program of each Series (and any specific criteria applicable to the Allocated Assets) are being observed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)Upon request, provide assistance and recommendations for the determination of the fair value of certain securities when reliable market quotations are not readily available for purposes of calculating net asset value in accordance with procedures and methods established by the Fund's Board of Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)Furnish, at its own expense, (i) all necessary investment and management facilities, including salaries of clerical and other personnel required for it to execute its duties faithfully, and (ii) administrative facilities, including bookkeeping, clerical personnel and equipment necessary for the efficient conduct of the investment advisory affairs of each Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Open accounts with Foreign Account Tax Compliance Act compliant broker-dealers, financial counterparties including swap counterparties and futures commission merchants ("broker-dealers"); select broker-dealers to effect all transactions for each Series; place all necessary orders with broker-dealers or issuers (including affiliated broker-dealers); and negotiate commissions, if applicable. To the extent consistent with applicable law, purchase or sell orders for each Series may be aggregated with contemporaneous purchase or sell orders of other clients of the Sub-Advisor. In such event allocation of securities so sold or purchased, as well as the expenses incurred in the transaction, will be made by the Sub-Advisor in the manner the Sub-Advisor considers to be the most equitable and consistent with its fiduciary obligations to the Fund and to other clients. The Sub-Advisor will report on such allocations at the request of the Manager, the Fund or the Fund's Board of Directors providing such information as the number of aggregated trades to which each Series was a party, the broker-dealers to whom such trades were directed and the basis for the allocation for the aggregated trades. The Sub-Advisor shall use its best efforts to obtain execution of transactions for each Series at prices which are advantageous to the Series and at commission rates that are reasonable in relation to the benefits received. However, the Sub-Advisor may select brokers or dealers on the basis that they provide brokerage, research or other services or products to the Sub-Advisor. To the extent consistent with applicable law, the Sub-Advisor may pay a broker or dealer an amount of commission for effecting a securities transaction in excess of the amount of commission or dealer spread another broker or dealer would have charged for effecting that transaction if the Sub-Advisor determines in good faith that such amount of commission is reasonable in relation to the value of the brokerage and research products and/or services provided by such broker or dealer. This determination, with respect to brokerage and research products and/or services, may be viewed in terms of either that particular transaction or the overall responsibilities which the Sub-Advisor and its affiliates have with respect to each Series as well as to accounts over which they exercise investment discretion. Not all such services or products need be used by the Sub-Advisor in managing the Allocated Assets. In addition, joint repurchase or other accounts may not be utilized by the Series except to the extent permitted under any exemptive order obtained by the Sub-Advisor provided that all conditions of such order are complied with.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)Section 871(m) Transactions: Sub-Advisor shall not on behalf of a Series enter into certain U.S. dividend equivalent payment transactions described in Section 871(m) of the U.S. Internal Revenue Code and the regulations thereunder ("871(m) Transaction") with a foreign counterparty unless: (i) Sub-Advisor adheres to the ISDA 2015 Section 871(m) Protocol on behalf of the Series, and (ii) the foreign counterparty to the 871(m) Transaction provides Sub-Advisor with a properly completed Form W-8IMY certifying to its status as a qualified derivatives dealer ("QDD").

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)Maintain all accounts, books and records with respect to the Allocated Assets as are required of an investment advisor of a registered investment company pursuant to the 1940 Act and Investment Advisers Act of 1940, as amended (the "Advisers Act"), and the rules thereunder, and furnish the Fund and the Manager with such periodic and special reports as the Fund or the Manager may reasonably request. In compliance with the requirements of Rule 31a-3 under the 1940 Act, the Sub-Advisor hereby agrees that all records that it maintains for each Series are the property of the Fund, agrees to preserve for the periods described by Rule 31a-2 under the 1940 Act any records that it maintains for the Series and that are required to be maintained by Rule 31a-1 under the 1940 Act, and further agrees to surrender promptly to the Fund any records that it maintains for a Series upon request by the Fund or the Manager. The Sub-Advisor has no responsibility for the maintenance of Fund records except insofar as is directly related to the services the Sub-Advisor provides to a Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)Observe and comply with Rule 17j-1 under the 1940 Act and the Sub-Advisor's Code of Ethics adopted pursuant to that Rule as the same may be amended from time to time. The Manager acknowledges receipt of a copy of the Sub-Advisor's current Code of Ethics. The Sub-Advisor shall promptly forward to the Manager a copy of any material amendment to the Sub-Advisor's Code of Ethics along with certification that the Sub-Advisor has implemented procedures for administering the Sub-Advisor's Code of Ethics.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)From time to time as the Manager or the Fund may request, furnish the requesting party reports on portfolio transactions and reports on investments held by a Series, all in such detail as the Manager or the Fund may reasonably request. The Sub-Advisor will make available its officers and employees to meet with the Fund's Board of Directors at the Fund's principal place of business on due, reasonable notice to review the investments of a Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(n)Provide such information as is customarily provided by a sub-advisor, or as may be required or reasonably requested by the Manager, for the Fund or the Manager to comply with their respective obligations under applicable laws, including, without limitation, the Internal Revenue Code of 1986, as amended (the "Code"), the 1940 Act, the Advisers Act, the Securities Act of 1933, as amended (the "Securities Act"), and any state securities laws, and any rule or regulation thereunder. Such information includes, but is not limited to: the Sub-Advisor's compliance manual and policies and procedures adopted to comply with Rules 206(4)-6 and 206(4)-7 of the Advisers Act; the Sub-Advisor's most recent annual compliance report or a detailed summary of such report; timely, accurate and complete responses to all 15(c) questionnaires; timely, accurate and complete responses to all Quarterly Compliance Questionnaires (including the identification of any material compliance matters and a copy of any material changes to the Sub-Advisor's Rules 206(4)-6 and 206(4)-7 policies and procedures, marked to show changes along with a written summary of the purpose of each such change); Annual Proxy Voting Questionnaires; Annual Best Execution and Soft Dollar Questionnaires, and responses to all other requests from the Manager. The Sub-Advisor agrees to make available for the Manager's review all deficiency letters issued by the SEC together with all responses given by Sub-Advisor to such letters. The Sub-Advisor will advise the Manager of any material changes in the Sub-Advisor's ownership within a reasonable time after any such change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(o)Vote proxies received on behalf of each Series (with respect to the portion thereof allocated to the Sub-Advisor) in a manner consistent with the Sub-Advisor's proxy voting policies and procedures and provide a record of votes cast containing all of the voting information required by Form N-PX in an electronic format to enable the Series to file Form N-PX as required by SEC rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(p)Respond to tender offers, rights offerings and other voluntary corporate action requests affecting securities held by each Series (with respect to the portion thereof allocated to the Sub-Advisor).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(q)Cooperate with the Manager in its performance of quarterly and annual tax compliance tests to monitor the Series' compliance with Subchapter M of the Code and Section 817(h) of the Code. If it is determined by the Manager or its tax advisors that the Series is not in compliance with the requirements imposed by the Code, the Sub-Advisor, in consultation with the Manager and its tax advisors, will take prompt action to bring the Series back into compliance within the time permitted under the Code.

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3.<u>Prohibited Conduct</u>

In providing the services described in this Agreement, the Sub-Advisor will not consult with any other investment advisory firm that provides investment advisory services to any investment company sponsored by Principal Financial Group, Inc. regarding transactions for the Fund in securities or other assets.

4.<u>Compensation</u>

As full compensation for all services rendered and obligations assumed by the Sub-Advisor hereunder with respect to the Allocated Assets, the Manager shall pay the compensation specified in <u>Appendix A</u> to this Agreement.

5.<u>Liability of Sub-Advisor</u>

Neither the Sub-Advisor nor any of its directors, officers, employees, agents or affiliates shall be liable to the Manager, the Fund or its shareholders for any loss suffered by the Manager or the Fund resulting from any error of judgment made in the good faith exercise of the Sub-Advisor's investment discretion in connection with selecting investments for a Series or as a result of the failure by the Manager or any of its affiliates to comply with the terms of this Agreement, except for losses resulting from willful misfeasance, bad faith or gross negligence of, or from reckless disregard of, the duties of the Sub-Advisor or any of its directors, officers, employees, agents, or affiliates.

6.<u>Trade Errors</u>

The Sub-Advisor will notify the Manager of any Trade Error(s), regardless of materiality, promptly upon the discovery of such Trade Error(s) by the Sub-Advisor. Notwithstanding <u>Section 5</u>, the Sub-Advisor shall be liable to the Manager, the Fund or its shareholders for any loss suffered by the Manager or the Fund resulting from Trade Errors due to negligence, misfeasance, or disregard of duties of the Sub Advisor or any of its directors, officers, employees, agents (excluding any broker-dealer selected by the Sub-Advisor), or affiliates. For purposes under this <u>Section 6</u>, a "Trade Error" occurs when a transaction results in an unintended, including an impermissible, result. Examples include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• orders by the Sub-Advisor that result in the purchase or sale of securities or other assets that were not intended to be purchased or sold;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• orders by the Sub-Advisor that result in the purchase or sale of securities or other assets in an unintended amount, which includes price or commission rate; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• purchases or sales of securities or other assets that violate, at the time of the purchase or sale, the investment limitations or restrictions disclosed in the Fund's registration statement and/or imposed by applicable law, regulation, contract or understanding (calculated at the Sub-Advisor's portfolio level), unless otherwise agreed to in writing.

7.<u>Supplemental Arrangements</u>

The Sub-Advisor may enter into arrangements with other persons affiliated with the Sub-Advisor or with unaffiliated third parties to better enable the Sub-Advisor to fulfill its obligations under this Agreement for the provision of certain personnel and facilities to the Sub-Advisor, subject to written notification to and approval of the Manager and, where required by applicable law, the Board of Directors of the Fund; provided, however, that entry into any such arrangements shall not relieve the Sub-Advisor of any of its obligations under this Agreement.

8.<u>Regulation</u>

The Sub-Advisor shall submit to all regulatory and administrative bodies having jurisdiction over the services provided pursuant to this Agreement any information, reports or other material which any such body may request or require pursuant to applicable laws and regulations.

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9.<u>Duration and Termination of This Agreement</u>

This Agreement shall become effective with respect to a Series as of the corresponding date set forth on <u>Appendix B</u> to this Agreement, as may be amended from time to time, and, unless otherwise terminated with respect to such Series, shall continue in effect thereafter for the initial term set forth on <u>Appendix B</u> to this Agreement, and thereafter from year to year, provided that in each case the continuance is specifically approved within the period required by the 1940 Act either by the Board of Directors of the Fund or by a vote of a majority of the outstanding voting securities of the Series and in either event by a vote of a majority of the Board of Directors of the Fund who are not interested persons of the Manager, Principal Financial Group, Inc., the Sub-Advisor or the Fund cast in accordance with the requirements of the 1940 Act after taking into effect any exemptive order, no-action assurances or other relief, rule or regulation upon which the Fund may rely.

If the shareholders of a Series fail to approve the Agreement or any continuance of the Agreement in accordance with the requirements of the 1940 Act, the Sub-Advisor will continue to act as Sub-Advisor with respect to the Allocated Assets of such Series pending the required approval of the Agreement or its continuance or of any contract with the Sub-Advisor or a different manager or sub-advisor or other definitive action; provided, that the compensation received by the Sub-Advisor in respect to the Allocated Assets of such Series during such period is in compliance with Rule 15a-4 under the 1940 Act.

This Agreement may be terminated with respect to a Series at any time without the payment of any penalty by the Board of Directors of the Fund or by the Sub-Advisor, the Manager or by vote of a majority of the outstanding voting securities of the Series on sixty days' written notice. This Agreement shall automatically terminate in the event of its assignment. In interpreting the provisions of this <u>Section 9</u>, the definitions contained in Section 2(a) of the 1940 Act (particularly the definitions of "interested person," "assignment," "voting security" and "majority of the outstanding voting securities") shall be applied.

10.<u>Amendment of this Agreement</u>

No amendment of this Agreement shall be effective unless in writing and signed by both parties. No material amendment of this Agreement shall be effective until approved, if required by the 1940 Act or the rules, regulations, interpretations or orders issued thereunder, by vote of the holders of a majority of the outstanding voting securities of the Series (as defined in the 1940 Act) and by vote of a majority of the Board of Directors of the Fund who are not interested persons (as defined in the 1940 Act) of the Manager, the Sub-Advisor, Principal Financial Group, Inc. or the Fund cast in accordance with the requirements of the 1940 Act after taking into effect any exemptive order, no-action assurances or other relief, rule or regulation upon which the Fund may rely.

11.<u>Additional Series</u>

In the event the Manager wishes to appoint the Sub-Advisor to perform the services described in this Agreement with respect to one or more additional Series of the Fund after the effective date of this Agreement, such Series will become a Series under this Agreement upon approval of this Agreement in the manner required by the 1940 Act and the amendment of <u>Appendices A</u> and <u>B</u> hereto.

12.<u>General Provisions</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)Each party agrees to perform such further acts and execute such further documents as are necessary to effectuate the purposes hereof. This Agreement shall be construed and enforced in accordance with and governed by the laws of the State of Iowa. The captions in this Agreement are included for convenience only and in no way define or delimit any of the provisions hereof or otherwise affect their construction or effect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)Any notice under this Agreement shall be in writing, addressed and delivered or mailed postage pre-paid to the other party at such address as such other party may designate for the receipt of such notices. Until further notice to the other party, it is agreed that the address of the Manager for this purpose shall be Principal Financial Group, Des Moines, Iowa 50392-0200. The address of the Sub-Advisor for this purpose shall be PineBridge Investments, Attn: Legal Department, Park Avenue Tower, 65 East 55th Street, 6<sup>th</sup> Floor, New York, NY 10022.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)The Sub-Advisor will promptly notify the Manager in writing of the occurrence of any of the following events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.the Sub-Advisor fails to be registered as an investment advisor under the Advisers Act or under the laws of any jurisdiction in which the Sub-Advisor is required to be registered as an investment advisor in order to perform its obligations under this Agreement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.the Sub-Advisor is served or otherwise receives notice of any action, suit, proceeding, inquiry or investigation, at law or in equity, before or by any court, public board or body, involving the affairs of a Series.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.the Sub-Advisor becomes aware of any pending or threatened action, suit, proceeding, inquiry or investigation that is reasonably likely to result in a conviction, order, judgment or decree issued with respect to it or any affiliate that could reasonably be expected to result in the Sub-Advisor becoming ineligible to serve as an investment advisor of a registered investment company under the 1940 Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.the Sub-Advisor becomes aware of a transaction or series of transactions that is reasonably likely to result in a change in the management or control of the Sub-Advisor or a controlling person thereof or otherwise in the assignment (as defined in the 1940 Act) of this Agreement by the Sub-Advisor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)The Manager shall provide (or cause the Series custodian to provide) timely information to the Sub-Advisor regarding such matters as the composition of the assets of a Series, cash requirements and cash available for investment in a Series, and all other reasonable information as may be necessary for the Sub-Advisor to perform its duties and responsibilities hereunder.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)The Sub-Advisor represents that it will not enter into any agreement, oral or written, or other understanding under which the Fund directs or is expected to direct portfolio securities transactions, or any remuneration, to a broker or dealer in consideration for the promotion or sale of Fund shares or shares issued by any other registered investment company. The Sub-Advisor further represents that it is contrary to the Sub-Advisor's policies to permit those who select brokers or dealers for execution of Fund portfolio securities transactions to take into account the broker's or dealer's promotion or sale of Fund shares or shares issued by any other registered investment company.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)The Manager represents, and the Sub-Advisor acknowledges, that with respect to the Series, the Manager is relying on the exclusion from the definition of "commodity pool operator" under Section 4.5 of the General Regulations under the CEA ("Rule 4.5"). The Sub-Advisor will not exceed the de minimis trading limits set forth in Rule 4.5(c)(2)(iii)(B) with respect to the Series unless otherwise agreed to in writing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)The Sub-Advisor agrees that neither it nor any of its affiliates will in any way refer to its relationship with the Fund, the Series, or the Manager or any of their respective affiliates in offering, marketing or other promotional materials without the express written consent of the Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)This Agreement contains the entire understanding and agreement of the parties.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Each party agrees that electronic signatures of the parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means any electronic sound, symbol, or process attached to or logically associated with a record and executed and adopted by a party with the intent to sign such record, including facsimile or email electronic signatures.

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IN WITNESS WHEREOF, the parties have duly executed this Agreement on the date first above written.

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| | |
|:---|:---|
| **PRINCIPAL GLOBAL INVESTORS, LLC** | **PRINCIPAL GLOBAL INVESTORS, LLC** |
| By: | /s/ Adam U. Shaikh |
| Name: | Adam U. Shaikh |
| Title: | Associate General Counsel |
| By: | /s/ Laura B. Latham |
| Name: | Laura B. Latham |
| Title: | Assistant General Counsel |
| **PINEBRIDGE INVESTMENTS LLC** | **PINEBRIDGE INVESTMENTS LLC** |
| By: | /s/ Steven Oh |
| Name: | Steven Oh |
| Title: | Managing Director & Head of Fixed Income |

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------

**<u>APPENDIX A</u>**

Intentionally Omitted

------

**<u>APPENDIX B</u>**

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| | | |
|:---|:---|:---|
| **Effective Date and Initial Term of Sub-Advisory Agreement for each Series** | **Effective Date and Initial Term of Sub-Advisory Agreement for each Series** | **Effective Date and Initial Term of Sub-Advisory Agreement for each Series** |
| **Series** | **Effective Date** | **Initial Term** |
| Diversified Income | 12/30/2025 | 2 Years |

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## Ex-99.(G)(1)H

EXECUTION

**AMENDMENT TO SCHEDULE II**

Schedule II to the Custody Agreement between Principal Funds, Inc. and The Bank of New York Mellon effective November 11, 2011, as amended (the "Agreement") is hereby amended effective May 30, 2025 to (i) add the Principal Funds, Inc. – Global Macro Fund, as a Series under the Agreement; and (iii) delete Schedule II in its entirety and replace such Schedule with the attached Schedule II.

Except as specifically amended hereby, the Agreement shall remain in full force and effect in accordance with its terms.

Each party represents and warrants to the other party that it has full authority to enter into this Amendment to Schedule II of the Agreement upon the terms and conditions hereof and that the individual executing this Amendment to Schedule II on its behalf has the requisite authority to bind such party to this Amendment to Schedule II and the Agreement.

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| | | | |
|:---|:---|:---|:---|
| **PRINCIPAL FUNDS, INC.** | **PRINCIPAL FUNDS, INC.** | **THE BANK OF NEW YORK MELLON** | **THE BANK OF NEW YORK MELLON** |
| By: | /s/ Gina Graham | By: | /s/ Michael Gronsky |
| Name: | Gina Graham | Name: | Michael Gronsky |
| Title: | VP & Treasurer | Title: | Senior Vice President |
| Date: | May 30, 2025 | Date: | Jun 6, 2025 |
| By: | /s/ Dan Westholm |  |  |
| Name: | Dan Westholm |  |  |
| Title: | AVP-Treasury |  |  |
| Date: | Jun 6, 2025 |  |  |

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------

**SCHEDULE II**

List of Series

(As of May 30, 2025)

---

| |
|:---|
| Principal Funds, Inc – Blue Chip Fund |
| Principal Funds, Inc – Bond Market Index Fund |
| Principal Funds, Inc – California Municipal Fund |
| Principal Funds, Inc – Capital Securities Fund |
| Principal Funds, Inc - Core Fixed Income Fund (formerly, Income Fund) |
| Principal Funds, Inc – Core Plus Bond Fund (formerly, Bond & Mortgage Securities Fund) |
| Principal Funds, Inc – Diversified Income Fund (formerly, Global Diversified Income Fund) |
| Principal Funds, Inc – Diversified International Fund |
| Principal Funds, Inc – Diversified Real Asset Fund |
| Principal Funds, Inc – EDGE MidCap Fund |
| Principal Funds, Inc – Equity Income Fund |
| Principal Funds, Inc – Finisterre Emerging Markets Total Return Bond Fund |
| &nbsp;&nbsp;&nbsp;(formerly, Finisterre Unconstrained Emerging Markets Bond Fund) |
| Principal Funds, Inc – Global Emerging Markets Fund (formerly, International Emerging Markets Fund) |
| Principal Funds, Inc – Global Macro Fund |
| Principal Funds, Inc – Global Multi-Strategy Fund |
| Principal Funds, Inc – Global Real Estate Securities Fund |
| Principal Funds, Inc. - Global Sustainable Listed Infrastructure Fund |
| Principal Funds, Inc – Government & High Quality Bond Fund |
| Principal Funds, Inc - Government Money Market Fund |
| Principal Funds, Inc – High Income Fund (formerly, High Yield Fund I) |
| Principal Funds, Inc – High Yield Fund |
| Principal Funds, Inc – Inflation Protection Fund |
| Principal Funds, Inc – International Equity Index Fund |
| Principal Funds, Inc – International Equity Fund |
| Principal Funds, Inc – International Small Company Fund |
| Principal Funds, Inc – LargeCap Growth Fund I |
| Principal Funds, Inc – LargeCap S&P 500 Index Fund |
| Principal Funds, Inc – LargeCap Value Fund III |
| Principal Funds, Inc – MidCap Fund |
| Principal Funds, Inc – MidCap Growth Fund |
| Principal Funds, Inc – MidCap Growth Fund III |
| Principal Funds, Inc – MidCap S&P 400 Index Fund |
| Principal Funds, Inc – MidCap Value Fund I |
| Principal Funds, Inc – Money Market Fund |
| Principal Funds, Inc – Opportunistic Municipal Fund |
| Principal Funds, Inc – Origin Emerging Markets Fund |
| Principal Funds, Inc – Overseas Fund |
| Principal Funds, Inc – Principal Capital Appreciation Fund |
| Principal Funds, Inc – Principal LifeTime 2015 Fund |
| Principal Funds, Inc – Principal LifeTime 2020 Fund |
| Principal Funds, Inc – Principal LifeTime 2025 Fund |
| Principal Funds, Inc – Principal LifeTime 2030 Fund |

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| |
|:---|
| Principal Funds, Inc – Principal LifeTime 2035 Fund |
| Principal Funds, Inc – Principal LifeTime 2040 Fund |
| Principal Funds, Inc – Principal LifeTime 2045 Fund |
| Principal Funds, Inc – Principal LifeTime 2050 Fund |
| Principal Funds, Inc – Principal LifeTime 2055 Fund |
| Principal Funds, Inc – Principal LifeTime 2060 Fund |
| Principal Funds, Inc – Principal LifeTime 2065 Fund |
| Principal Funds, Inc – Principal LifeTime 2070 Fund |
| Principal Funds, Inc – Principal LifeTime Hybrid Income Fund |
| Principal Funds, Inc – Principal LifeTime Hybrid 2015 Fund |
| Principal Funds, Inc – Principal LifeTime Hybrid 2020 Fund |
| Principal Funds, Inc – Principal LifeTime Hybrid 2025 Fund |
| Principal Funds, Inc – Principal LifeTime Hybrid 2030 Fund |
| Principal Funds, Inc – Principal LifeTime Hybrid 2035 Fund |
| Principal Funds, Inc – Principal LifeTime Hybrid 2040 Fund |
| Principal Funds, Inc – Principal LifeTime Hybrid 2045 Fund |
| Principal Funds, Inc – Principal LifeTime Hybrid 2050 Fund |
| Principal Funds, Inc – Principal LifeTime Hybrid 2055 Fund |
| Principal Funds, Inc – Principal LifeTime Hybrid 2060 Fund |
| Principal Funds, Inc – Principal LifeTime Hybrid 2065 Fund |
| Principal Funds, Inc – Principal LifeTime Hybrid 2070 Fund |
| Principal Funds, Inc – Principal LifeTime Strategic Income Fund |
| Principal Funds, Inc – Real Estate Securities Fund |
| Principal Funds, Inc – SAM Balanced Portfolio |
| Principal Funds, Inc – SAM Conservative Balanced Portfolio |
| Principal Funds, Inc – SAM Conservative Growth Portfolio |
| Principal Funds, Inc – SAM Flexible Income Portfolio |
| Principal Funds, Inc – SAM Strategic Growth Portfolio |
| Principal Funds, Inc – Short-Term Income Fund |
| Principal Funds, Inc – Small-MidCap Dividend Income Fund |
| Principal Funds, Inc –SmallCap Fund (formerly, SmallCap Blend Fund) |
| Principal Funds, Inc – SmallCap Growth Fund I |
| Principal Funds, Inc – SmallCap S&P 600 Index Fund |
| Principal Funds, Inc – SmallCap Value Fund II |
| Principal Funds, Inc – Spectrum Preferred & Capital Securities Income Fund |
| &nbsp;&nbsp;&nbsp;(formerly, Preferred Securities Fund) |
| Principal Funds, Inc – Tax-Exempt Bond Fund |

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## Ex-99.(H)(9)

**PRINCIPAL FUNDS, INC.**

**CONTRACTUAL FEE WAIVER AGREEMENT**

AGREEMENT to be effective March 1, 2026, by and between Principal Funds, Inc. (the "Fund") and Principal Global Investors, LLC (the "Advisor") (together, the "Parties").

The Advisor has contractually agreed to limit the Fund's expenses (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and other extraordinary expenses) on certain share classes of certain of the Funds. For avoidance of doubt, the expenses associated with collecting tax reclaims in foreign countries, such as countries in the European Union, for taxes withheld in prior years are extraordinary expenses and, as such, are excluded from the expense limits. 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 respective class on an annualized basis. The expenses borne by the Advisor 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. The operating expense limits are attached on Schedule A to this Agreement.

Further, the Advisor has contractually agreed to waive a portion of the management fee it receives from certain Funds. The waiver is expressed as a percentage of average daily net assets. The management fee waivers are attached as Schedule B to this Agreement.

The Agreement embodies the entire agreement of the Parties relating to the subject matter hereof. This Agreement supersedes all prior agreement and understandings, and all rights and obligations thereunder are hereby canceled and terminated. No amendment or modification of this Agreement will be valid or binding unless it is in writing by the Parties.

This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. Each Party agrees that electronic signatures of the Parties included in this Agreement are intended to authenticate this writing and to have the same force and effect as manual signatures. Electronic signature means any electronic sound, symbol, or process attached to or logically associated with a record and executed and adopted by a party with the intent to sign such record, including facsimile or email electronic signatures.

------

IN WITNESS WHEREOF, the Parties hereto have caused this Agreement to be executed effective as of the day and year first written above.

---

| | | | |
|:---|:---|:---|:---|
| **PRINCIPAL FUNDS, INC.** | **PRINCIPAL FUNDS, INC.** | **PRINCIPAL GLOBAL INVESTORS, LLC** | **PRINCIPAL GLOBAL INVESTORS, LLC** |
| By: | /s/ Adam U. Shaikh | By: | /s/ John L. Sullivan |
| Name: | Adam U. Shaikh | Name: | John L. Sullivan  |
| Title: | Vice President, Assistant General Counsel, <br>&nbsp;&nbsp;&nbsp;&nbsp;and Assistant Secretary | Title: | Assistant General Counsel  |
| By: | /s/ Deanna Y. Pellack | By: | /s/ David P. Michalik |
| Name: | Deanna Y. Pellack | Name: | David P. Michalik |
| Title: | Counsel and Secretary | Title: | Counsel  |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
| **SCHEDULE A** | **SCHEDULE A** | **SCHEDULE A** | **SCHEDULE A** | **SCHEDULE A** |
| **Series** | **Class A** | **Class J** | **Institutional<br>Class** | **Expiration** |
| California Municipal Fund | N/A | N/A | 0.46% | 02/28/2027 |
| Core Fixed Income Fund | N/A | N/A | 0.43% | 02/28/2027 |
| Core Plus Bond Fund | 0.80% | N/A | 0.48% | 02/28/2027 |
| Diversified Income Fund | N/A | N/A | 0.68% | 02/28/2027 |
| Diversified International Fund | N/A | N/A | 0.85% | 02/28/2027 |
| Equity Income Fund | N/A | N/A | 0.52% | 02/28/2027 |
| Finisterre Emerging Markets Total Return Bond Fund | N/A | N/A | 0.85% | 02/28/2027 |
| Global Emerging Markets Fund | 1.45% | 1.30% | 1.10% | 02/28/2027 |
| Global Real Estate Securities Fund | N/A | N/A | 0.94% | 02/28/2027 |
| Government & High Quality Bond Fund | N/A | N/A | 0.53% | 02/28/2027 |
| Government Money Market Fund | N/A | N/A | 0.20% | 02/28/2027 |
| High Yield Fund | N/A | N/A | 0.60% | 02/28/2027 |
| International Equity Fund | N/A | N/A | 0.79% | 02/28/2027 |
| MidCap Value Fund I | N/A | N/A | 0.69% | 02/28/2027 |
| Money Market Fund | 0.50% | N/A | N/A | 02/28/2027 |
| Overseas Fund | N/A | N/A | 0.91% | 02/28/2027 |
| Principal LifeTime 2050 Fund | 0.38% | N/A | N/A | 02/28/2027 |
| Principal LifeTime 2060 Fund | N/A | 0.38% | N/A | 02/28/2027 |
| Principal LifeTime 2070 Fund | N/A | 0.30% | 0.05% | 02/28/2027 |
| Principal LifeTime Hybrid 2015 Fund | N/A | N/A | 0.05% | 02/28/2027 |
| Principal LifeTime Hybrid 2020 Fund | N/A | N/A | 0.05% | 02/28/2027 |
| Principal LifeTime Hybrid 2025 Fund | N/A | N/A | 0.05% | 02/28/2027 |
| Principal LifeTime Hybrid 2030 Fund | N/A | N/A | 0.05% | 02/28/2027 |
| Principal LifeTime Hybrid 2035 Fund | N/A | N/A | 0.05% | 02/28/2027 |
| Principal LifeTime Hybrid 2040 Fund | N/A | N/A | 0.05% | 02/28/2027 |
| Principal LifeTime Hybrid 2045 Fund | N/A | N/A | 0.05% | 02/28/2027 |
| Principal LifeTime Hybrid 2050 Fund | N/A | N/A | 0.05% | 02/28/2027 |
| Principal LifeTime Hybrid 2055 Fund | N/A | N/A | 0.05% | 02/28/2027 |
| Principal LifeTime Hybrid 2060 Fund | N/A | 0.30% | 0.05% | 02/28/2027 |
| Principal LifeTime Hybrid 2065 Fund | N/A | 0.30% | 0.05% | 02/28/2027 |
| Principal LifeTime Hybrid 2070 Fund | N/A | 0.30% | 0.05% | 02/28/2027 |
| Principal LifeTime Hybrid Income Fund | N/A | N/A | 0.05% | 02/28/2027 |
| Principal LifeTime Strategic Income Fund | 0.38% | N/A | 0.00% | 02/28/2027 |
| Real Estate Securities Fund | N/A | N/A | 0.86% | 02/28/2027 |
| SmallCap Fund | N/A | N/A | 0.85% | 02/28/2027 |
| SmallCap S&P 600 Index Fund | N/A | N/A | 0.21% | 02/28/2027 |
| SmallCap Value Fund II | N/A | N/A | 0.93% | 02/28/2027 |
| Tax-Exempt Bond Fund | N/A | N/A | 0.45% | 02/28/2027 |

---

---

| | | | |
|:---|:---|:---|:---|
| **Series** | **Class R-3** | **Class R-5** | **Expiration** |
| Government & High Quality Bond Fund | 0.98% | 0.67% | 02/28/2027 |
| Principal LifeTime 2070 Fund | 0.62% | 0.31% | 02/28/2027 |

---

------

In addition, the Advisor has contractually agreed to limit the expenses identified as "Other Expenses" related to certain share classes of certain of the Funds by paying, if necessary, expenses normally payable by the Fund (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and other extraordinary expenses) to maintain "Other Expenses" (expressed as a percent of average net assets on an annualized basis) at or below certain limits. For avoidance of doubt, the expenses associated with collecting tax reclaims in foreign countries, such as countries in the European Union, for taxes withheld in prior years are extraordinary expenses and, as such, are excluded from the expense limits. The limits are expressed as a percent of average net assets on an annualized basis. The Other Expenses limits and the agreement terms are as follows:

---

| | | |
|:---|:---|:---|
| **Series** | **Class R-6** | **Expiration** |
| Diversified Income Fund | 0.02% | 02/28/2027 |
| Diversified International Fund | 0.04% | 02/28/2027 |
| Government Money Market Fund | 0.00% | 02/28/2027 |
| International Bond Fund | 0.04% | 02/28/2027 |
| Principal LifeTime Hybrid 2015 Fund | 0.02% | 02/28/2027 |
| Principal LifeTime Hybrid 2020 Fund | 0.02% | 02/28/2027 |
| Principal LifeTime Hybrid 2025 Fund | 0.02% | 02/28/2027 |
| Principal LifeTime Hybrid 2045 Fund | 0.02% | 02/28/2027 |
| Principal LifeTime Hybrid 2050 Fund | 0.02% | 02/28/2027 |
| Principal LifeTime Hybrid 2055 Fund | 0.02% | 02/28/2027 |
| Principal LifeTime Hybrid 2060 Fund | 0.02% | 02/28/2027 |
| Principal LifeTime Hybrid 2065 Fund | 0.02% | 02/28/2027 |
| Principal LifeTime Hybrid 2070 Fund | 0.02% | 02/28/2027 |
| Principal LifeTime Hybrid Income Fund | 0.02% | 02/28/2027 |
| SmallCap Growth Fund I | 0.01% | 02/28/2027 |
| SmallCap Value Fund II | 0.02% | 02/28/2027 |

---

---

| | | | | |
|:---|:---|:---|:---|:---|
| **Series** | **Class A** | **Class C** | **Institutional**<br>**Class** | **Expiration** |
| Blue Chip Fund | N/A | N/A | 0.66% | 12/30/2026 |
| Diversified Real Asset Fund | 1.20% | N/A | 0.83% | 12/30/2026 |
| Global Listed Infrastructure Fund | N/A | N/A | 0.65% | 12/30/2026 |
| Global Multi-Strategy Fund | N/A | N/A | 1.39% | 12/30/2026 |
| International Equity Index Fund | N/A | N/A | 0.28% | 12/30/2026 |
| International Small Company Fund | N/A | N/A | 1.08% | 12/30/2026 |
| Opportunistic Municipal Fund | 0.84% | N/A | 0.56% | 12/30/2026 |
| Small-MidCap Dividend Income Fund | 1.12% | 1.87% | 0.85% | 12/30/2026 |

---

------

For Capital Securities Fund, the Advisor has agreed contractually to limit the Fund's expenses attributable to Class S shares by paying expenses normally payable by the Fund (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and other extraordinary expenses) to maintain a total level of operating expenses (expressed as a percent of average net assets on an annualized basis) not to exceed 0.00%. For avoidance of doubt, the expenses associated with collecting tax reclaims in foreign countries, such as countries in the European Union, for taxes withheld in prior years are extraordinary expenses and, as such, are excluded from the expense limit. It is expected that the expense limit will continue permanently (and in any event, at least through December 30, 2026); however, Principal Funds, Inc. and the Advisor, the parties to the agreement, may mutually agree to terminate the expense limit.

In addition, the Advisor has contractually agreed to limit the expenses identified as "Other Expenses" related to certain share classes of certain of the Funds by paying, if necessary, expenses normally payable by the Fund (excluding interest expense, expenses related to fund investments, acquired fund fees and expenses, expenses related to the ReFlow liquidity program, and other extraordinary expenses) to maintain "Other Expenses" (expressed as a percent of average net assets on an annualized basis) at or below certain limits. For avoidance of doubt, the expenses associated with collecting tax reclaims in foreign countries, such as countries in the European Union, for taxes withheld in prior years are extraordinary expenses and, as such, are excluded from the expense limits. The limits are expressed as a percent of average net assets on an annualized basis. The Other Expenses limits and the agreement terms are as follows:

---

| | | |
|:---|:---|:---|
| **Series** | **Class R-6** | **Expiration** |
| Diversified Real Asset Fund | 0.02% | 12/30/2026 |
| Global Macro Fund | 0.04% | 12/30/2026 |
| Global Multi-Strategy Fund | 0.04% | 12/30/2026 |
| International Equity Index Fund | 0.04% | 12/30/2026 |
| International Small Company Fund | 0.04% | 12/30/2026 |

---

------

---

| | | |
|:---|:---|:---|
| **SCHEDULE B** | **SCHEDULE B** | **SCHEDULE B** |
| **Series** | **Waiver** | **Expiration** |
| Blue Chip Fund | 0.03% | 12/30/2026 |
| Global Listed Infrastructure Fund | 0.11% | 12/30/2026 |
| LargeCap Growth Fund I | 0.016% | 02/28/2027 |
| LargeCap Value Fund III | 0.02% | 02/28/2027 |
| MidCap Value Fund I | 0.02% | 02/28/2027 |
| Overseas Fund | 0.02% | 02/28/2027 |
| SmallCap Growth Fund I | 0.02% | 02/28/2027 |
| SmallCap Value Fund II | 0.02% | 02/28/2027 |

---

For Government Money Market Fund, the Advisor has agreed contractually to reduce the fund's management fees in an amount equal to all acquired fund fees and expenses through February 28, 2027.

For LargeCap Value Fund III, the Advisor has agreed contractually to reduce the fund's management fees in an amount equal to the fund's acquired fund fees and expenses represented by the fund's investment in a particular unaffiliated exchange-traded fund that pursues a pure value investment strategy through February 28, 2027.

## Ex-99.(I)

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| | |
|:---|:---|
| Principal Funds, Inc.<br>711 High Street, Des Moines, IA 50392<br>515 247 5111 tel | ![principallogoregcolora.jpg](principallogoregcolora.jpg) |

---

February 27, 2026

Principal Funds, Inc.

Des Moines, IA 50392-0200

---

| |
|:---|
| Re: Principal Funds, Inc. (the "Registrant") |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registration Statement on Form N-1A (the "Registration Statement") |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the Securities Act of 1933, as amended |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Registration No. 033-59474 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Post-Effective Amendment No. 293 (the "Amendment") |

---

I am familiar with the Registrant, which is organized under the laws of the State of Maryland, and have reviewed the above-referenced Amendment filed with the Securities and Exchange Commission relating to the offer and sale of an indefinite number of shares of the Registrant's common stock (the "Shares"). Based upon such review as I have deemed necessary, I am of the opinion that the Shares proposed to be sold pursuant to the Amendment to the Registration Statement, when the Amendment becomes effective, will have been validly authorized and, when sold in accordance with the terms of the Amendment and the requirements of federal and state law, will have been legally issued, fully paid, and non-assessable.

I consent to the filing of this opinion as an exhibit to the Registration Statement.

Sincerely,

/s/ Deanna Y. Pellack

Deanna Y. Pellack

Counsel and Secretary, Registrant

## Ex-99.(J)(1)

CONSENT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

We consent to the references to our firm under the captions "Appendix C – Financial Highlights" in the Prospectus and "Portfolio Holdings Disclosure" and "Independent Registered Public Accounting Firm" in the Statement of Additional Information, each dated March 1, 2026, and each included in this Post-Effective Amendment No. 293 on the Registration Statement (Form N-1A, File No. 033-59474) of Principal Funds, Inc. (the "Registration Statement").

&nbsp;&nbsp;&nbsp;&nbsp;We also consent to the incorporation by reference of our report dated December 22, 2025, with respect to the financial statements and financial highlights of California Municipal Fund, Core Fixed Income Fund, Core Plus Bond Fund, Diversified Income Fund, Diversified International Fund, Equity Income Fund, Finisterre Emerging Markets Total Return Bond Fund, Global Emerging Markets Fund, Global Real Estate Securities Fund, Government & High Quality Bond Fund, Government Money Market Fund, High Yield Fund, Inflation Protection Fund, International Equity Fund, LargeCap Growth Fund I, LargeCap S&P 500 Index Fund, LargeCap Value Fund III, MidCap Fund, MidCap S&P 400 Index Fund, MidCap Value Fund I, Money Market Fund, Overseas Fund, Principal Capital Appreciation Fund, Principal LifeTime Strategic Income Fund, Principal LifeTime 2015 Fund, Principal LifeTime 2020 Fund, Principal LifeTime 2025 Fund, Principal LifeTime 2030 Fund, Principal LifeTime 2035 Fund, Principal LifeTime 2040 Fund, Principal LifeTime 2045 Fund, Principal LifeTime 2050 Fund, Principal LifeTime 2055 Fund, Principal LifeTime 2060 Fund, Principal LifeTime 2065 Fund, Principal LifeTime 2070 Fund, Principal LifeTime Hybrid Income Fund, Principal LifeTime Hybrid 2015 Fund, Principal LifeTime Hybrid 2020 Fund, Principal LifeTime Hybrid 2025 Fund, Principal LifeTime Hybrid 2030 Fund, Principal LifeTime Hybrid 2035 Fund, Principal LifeTime Hybrid 2040 Fund, Principal LifeTime Hybrid 2045 Fund, Principal LifeTime Hybrid 2050 Fund, Principal LifeTime Hybrid 2055 Fund, Principal LifeTime Hybrid 2060 Fund, Principal LifeTime Hybrid 2065 Fund, Principal LifeTime Hybrid 2070 Fund, Real Estate Securities Fund, SAM Balanced Portfolio, SAM Conservative Balanced Portfolio, SAM Conservative Growth Portfolio, SAM Flexible Income Portfolio, SAM Strategic Growth Portfolio, Short-Term Income Fund, SmallCap Fund, SmallCap Growth Fund I, SmallCap S&P 600 Index Fund, SmallCap Value Fund II, Tax-Exempt Bond Fund (61 of the portfolios constituting Principal Funds, Inc) included in the Annual Report to Shareholders (Form N-CSR) for the year ended October 31, 2025, into this Registration Statement filed with the Securities and Exchange Commission.

/s/ Ernst & Young LLP

Minneapolis, Minnesota

February 27, 2026

## Ex-99.(P)(1)

**AllianceBernstein**

**Code of Business Conduct and Ethics**

**Personal Trading Policies and Procedures** (Appendix A)

**January 2025**

------

**A Message from Seth Bernstein,** 

**Chief Executive Officer of AllianceBernstein**

*Client trust is the foundation of a financial services company. As we have seen, trust takes years to establish and constant vigilance to maintain but can be destroyed in a matter of days. Honesty, integrity, and high ethical standards must therefore be practiced on a daily basis in order to protect this most critical asset.*

*Enhancing our sensitivity to our ethical obligations – putting the interests of our clients first and foremost -- and ensuring that we meet those obligations is an imperative for all. AllianceBernstein has long been committed to maintaining and promoting high ethical standards and business practices. We have prepared this Code of Business Conduct and Ethics (the "Code") in order to establish a common vision of our ethical standards and practices. While not an exhaustive guide to the rules and regulations governing our businesses, the Code is intended to establish certain guiding principles for all of us.*

*Separately, the firm has in place a series of ethics, fiduciary and business-related policies and procedures, which set forth detailed requirements to which employees are subject. We also have prepared various Compliance Manuals, which provide in summary form, an overview of the concepts described in more detail both in this Code and in our other policies and procedures.*

*You should take the time to familiarize yourself with the policies in this Code and use common sense in applying them to your daily work environment and circumstances. Your own personal integrity and good judgment are the best guides to ethical and responsible conduct. If you have questions, you should discuss them with your supervisor, the General Counsel, the Chief Compliance Officer or a representative of the Legal and Compliance Department or Human Capital. If the normal channels for reporting are not appropriate, or if you feel uncomfortable utilizing them, issues may be brought to the attention of the Company Ombudsman, who is an independent, informal and confidential resource for concerns about AllianceBernstein business matters that may raise issues of ethics or questionable practices.*

*Our continued success depends on each of us maintaining high ethical standards and business practices. I count on each of you to place our clients' interests first – and to do so always by applying good ethics and sound judgment in your daily responsibilities.*

*Seth Bernstein*

------

**AllianceBernstein L.P.**

**CODE OF BUSINESS CONDUCT AND ETHICS**

---

| | | | |
|:---|:---|:---|:---|
| 1. | Introduction | Introduction | 1 |
| 2. | The AB Fiduciary Culture | The AB Fiduciary Culture | 1 |
| 3. | Compliance with Laws, Rules and Regulations | Compliance with Laws, Rules and Regulations | 2 |
| 4. | Policy Against Discrimination and Sexual and Unlawful Harassment | Policy Against Discrimination and Sexual and Unlawful Harassment | 2 |
| 5. | Conflicts of Interest / Unlawful Actions | Conflicts of Interest / Unlawful Actions | 3 |
| 6. | Insider Trading | Insider Trading | 4 |
| 7. | Personal Trading: Summary of Restrictions | Personal Trading: Summary of Restrictions | 5 |
| 8. | Outside Directorships and Other Outside Activities and Interests | Outside Directorships and Other Outside Activities and Interests | 6 |
|  | a. | Board Member or Trustee | 6 |
|  | b. | Other Affiliations | 7 |
|  | c. | Outside Financial or Business Interests | 8 |
| 9. | Gifts, Entertainment, and Inducements | Gifts, Entertainment, and Inducements | 8 |
| 10. | Compliance with Anti-Corruption Laws | Compliance with Anti-Corruption Laws | 9 |
| 11. | Political Contributions/Activities | Political Contributions/Activities | 9 |
|  | a. | By or on behalf of AB | 9 |
|  | b. | By Employees / Directors | 10 |
| 12. | "Ethical Wall" Policy | "Ethical Wall" Policy | 10 |
| 13. | Use of Client Relationships | Use of Client Relationships | 11 |
| 14. | Corporate Opportunities and Resources | Corporate Opportunities and Resources | 11 |
| 15. | Antitrust and Fair Dealing | Antitrust and Fair Dealing | 12 |
| 16. | Recordkeeping and Retention | Recordkeeping and Retention | 12 |
| 17. | Improper Influence on Conduct of Audits | Improper Influence on Conduct of Audits | 12 |
| 18. | Accuracy of Disclosure | Accuracy of Disclosure | 13 |
| 19. | Confidentiality | Confidentiality | 13 |
| 20. | Protection and Proper Use of AB Assets | Protection and Proper Use of AB Assets | 14 |
| 21. | Policy on Intellectual Property | Policy on Intellectual Property | 14 |
|  | a. | Overview | 14 |
|  | b. | Employee Responsibilities | 15 |
|  | c. | Company Policies and Practices | 15 |
| 22. | Exceptions from the Code | Exceptions from the Code | 15 |
|  | a. | Written Statement and Supporting Documentation | 15 |
|  | b. | Compliance Interview | 16 |
| 23. | Regulatory Inquiries, Investigations and Litigation | Regulatory Inquiries, Investigations and Litigation | 16 |
|  | a. | Requests for Information | 16 |
|  | b. | Types of Inquiries | 16 |
|  | c. | Responding to Information Requests | 16 |
|  | d. | Use of Outside Counsel | 16 |
|  | e. | Regulatory Investigation | 17 |
|  | f. | Litigation | 17 |
| 24. | Compliance and Reporting of Misconduct / "Whistleblower" Protection | Compliance and Reporting of Misconduct / "Whistleblower" Protection | 17 |
| 25. | Company Ombudsman | Company Ombudsman | 17 |
| 26. | Sanctions | Sanctions | 18 |
| 27. | Annual Certifications | Annual Certifications | 18 |

---

------

---

| | | | |
|:---|:---|:---|:---|
| | **Personal Trading Policies and Procedures** | **Personal Trading Policies and Procedures** | |
| | **Appendix A** | **Appendix A** | |
| **1.** | **Overview** | **Overview** | **1** |
|  | a. | Introduction | 1 |
|  | b. | Definitions | 1 |
|  | 4. | "Client" | 1 |
| **2.** | **Requirements and Restrictions – All Employees** | **Requirements and Restrictions – All Employees** | **4** |
|  | a. | General Standards | 4 |
|  | b. | Disclosure of Personal Accounts | 5 |
|  | c. | Designated Brokerage Account | 6 |
|  | d. | Pre-Clearance Requirement | 6 |
|  | e. | Limitation on the Number of Trades | 6 |
|  | f. | Short-Term Trading | 7 |
|  | g. | Short Sales | 7 |
|  | h. | Trading in AB Units and AB Funds | 7 |
|  | i. | Securities Being Considered for Purchase or Sale | 8 |
|  | j. | Restricted List | 9 |
|  | k. | Dissemination of Research Information | 9 |
|  | l. | Initial Public Offerings | 10 |
|  | m. | Limited Offerings/Private Placements | 10 |
| **3.** | **Additional Restrictions–Portfolio Managers** | **Additional Restrictions–Portfolio Managers** | **10** |
|  | a. | Blackout Periods | 11 |
|  | b. | Actions During Blackout Periods | 11 |
|  | c. | Transactions Contrary to Client Positions | 11 |
| **4.** | **Additional Restrictions–Research Analysts** | **Additional Restrictions–Research Analysts** | **11** |
|  | a. | Blackout Periods | 12 |
|  | b. | Actions During Blackout Periods | 12 |
|  | c. | Actions Contrary to Ratings | 12 |
| **5.** | **Additional Restrictions–Buy-Side Equity Traders** | **Additional Restrictions–Buy-Side Equity Traders** | **12** |
| **6.** | **Additional Restrictions–Alternate Investment Strategies Groups** | **Additional Restrictions–Alternate Investment Strategies Groups** | **13** |
| **7.** | **Exceptions to the Personal Trading Policy** | **Exceptions to the Personal Trading Policy** | **13** |
| **8** | **Reporting Requirements** | **Reporting Requirements** | **13** |
|  | a. | Duplicate Confirmations and Account Statements | 13 |
|  | b. | Initial Holdings Reports by Employees | 13 |
|  | c. | Quarterly Reports by Employees–including Certain Funds and Limited Offerings | 14 |
|  | d. | Annual Certification by Employees with Managed Accounts | 14 |
|  | e. | Annual Holdings Reports by Employees | 14 |
|  | f. | Report and Certification of Adequacy to the Board of Directors of Fund Clients | 15 |
|  | g. | Report Representations | 15 |
|  | h. | Maintenance of Reports | 15 |
| **9.** | **Reporting Requirements for Directors who are not Employees** | **Reporting Requirements for Directors who are not Employees** | **15** |
|  | a. | Outside Directors / Affiliated Outside Directors | 16 |

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------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.Introduction**

This Code of Business Conduct and Ethics (the "Code") summarizes the values, principles and business practices that guide our business conduct and establishes a set of basic principles and expectations to guide all AllianceBernstein employees, officers and directors, and consultants where applicable. The Code applies to all of our offices globally; however, it is not intended to provide an exhaustive list of all the detailed internal policies and procedures, regulations and legal requirements that may apply to you as an AllianceBernstein employee, officer, director, consultant, and/or a representative of one of our regulated subsidiaries. AllianceBernstein maintains more detailed policies and procedures addressing many of the topics covered by this Code, including the Compliance Manual, available on the Legal and Compliance Department intranet site. All AllianceBernstein employees, including covered consultants, officers, and directors are responsible for knowing and abiding by the relevant policies.

All individuals subject to the provisions of this Code must conduct themselves in a manner consistent with the requirements and procedures set forth herein. Adherence to the Code is a fundamental condition of service and employment with AllianceBernstein, any of our subsidiaries or joint venture entities, or our general partner (the "AB Group").

AllianceBernstein L.P. ("AB," "we" or "us") is a registered investment adviser and acts as investment manager or adviser to registered investment companies, institutional investment clients, employee benefit trusts, high net worth individuals and other types of investment advisory clients. In this capacity, we serve as fiduciaries. The fiduciary relationship mandates adherence to the highest standards of conduct and integrity.

Personnel acting in a fiduciary capacity must carry out their duties for the exclusive benefit of our clients. Consistent with this fiduciary duty, the interests of clients take priority over the personal investment objectives and other personal interests of AB personnel. Accordingly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Employees must work to mitigate or eliminate any conflict, or appearance of a conflict, between the self-interest of any individual covered under the Code and his or her responsibility to our clients, or to AB and its unitholders.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Employees must never improperly use their position with AB for personal gain to themselves, their family, or any other person.

The Code is intended to comply with the following regulations that apply to AB:

&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;• Rule 17j-1 under the (U.S.) Investment Company Act of 1940 (the "1940 Act") which applies to AB because we serve as an investment adviser to registered investment companies. Rule 17j-1 specifically requires us to adopt a code of ethics that contains provisions reasonably necessary to prevent our "access persons" (as defined herein) from engaging in fraudulent conduct, including insider trading.

&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;• Rule 204A-1 under the Investment Advisers Act of 1940 (the "Advisers Act"), which requires registered investment advisers to adopt and enforce codes of ethics applicable to their supervised persons.

&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;• Section 303A.10 of the New York Stock Exchange ("NYSE") Listed Company Manual, which applies to us because the units of AllianceBernstein Holding L.P. ("AllianceBernstein Holding") are traded on the NYSE.

Additionally, certain entities within the AB Group, such as Sanford C. Bernstein & Co., LLC and Sanford C. Bernstein Limited, have adopted supplemental codes of ethics to address specific regulatory requirements applicable to them. All employees are obligated to determine if any of these codes are applicable to them and to abide by such codes as appropriate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.The AB Fiduciary Culture**

The primary objective of AB's business is to provide value, through investment advisory and other financial services, to a wide range of clients, including governments, corporations, financial institutions, high net worth individuals and pension funds.

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AB requires that all dealings with, and on behalf of existing and prospective clients be handled with honesty, integrity, and high ethical standards, and that such dealings adhere to the letter and the spirit of applicable laws, regulations and contractual guidelines. As a general matter, AB is a fiduciary that owes its clients a duty of undivided loyalty, and each employee has a responsibility to act in a manner consistent with this duty.

When dealing with or on behalf of a client, every employee must act solely in the best interests of that client. In addition, various comprehensive statutory and regulatory structures such as the 1940 Act, the Advisers Act and the Employee Retirement Income Security Act ("ERISA") impose specific responsibilities governing the behavior of personnel in carrying out their responsibilities. AB and its employees must comply fully with these rules and regulations. Legal and Compliance Department personnel are available to assist employees in meeting these requirements.

All employees are expected to adhere to the high standards associated with our fiduciary duty, including care and loyalty to clients, competency, diligence and thoroughness, and trust and accountability. Further, all employees must actively work to avoid the possibility that the advice or services we provide to clients is, or gives the appearance of being, based on the self-interests of AB or its employees and not the clients' best interests.

Our fiduciary responsibilities apply to a broad range of investment and related activities, including sales and marketing, portfolio management, securities trading, allocation of investment opportunities, client service, operations support, performance measurement and reporting, new product development as well as your personal investing activities. These obligations include the duty to avoid material conflicts of interest (and, if this is not possible, to provide full and fair disclosure to clients in communications), to keep accurate books and records, and to supervise personnel appropriately. These concepts are further described in the Sections that follow.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.Compliance with Laws, Rules and Regulations**

AB has a long-standing commitment to conduct its business in compliance with applicable laws and regulations and in accordance with the highest ethical principles. This commitment helps ensure our reputation for honesty, quality, and integrity. All individuals subject to the Code are required to comply with all such laws and regulations. All U.S. employees, as well as non-U.S. employees who act on behalf of U.S. clients or funds, are required to comply with the U.S. federal securities laws. These laws include, but are not limited to, the 1940 Act, the Advisers Act, ERISA, the Securities Act of 1933 ("Securities Act"), the Securities Exchange Act of 1934 ("Exchange Act"), the Sarbanes- Oxley Act of 2002, Title V of the Gramm-Leach-Bliley Act, any rules adopted by the SEC under any of these statutes, the Bank Secrecy Act as it applies to our activities, and any rules adopted thereunder by the Securities and Exchange Commission ("SEC"), Department of the Treasury or the Department of Justice. As mentioned above, as a listed company, we are also subject to specific rules promulgated by the NYSE. Similarly, our non-US affiliates are subject to additional laws and regulatory mandates in their respective jurisdictions, which must be fully complied with.

Our obligation to comply with all applicable laws, regulations, and rules, and to act in an honest and ethical manner, trumps all other considerations, including the interests of our clients. Policies referenced in this Code provide additional details and requirements to ensure compliance. A violation under any of these policies may be deemed a violation of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.Policy Against Discrimination and Sexual and Unlawful Harassment**

AB is committed to providing a working environment free from all forms of discrimination and harassment on the basis of race, color, religion, creed, ancestry, national origin, sex, age, disability, marital status, citizenship status, sexual orientation, gender identity expression, military or veteran status, or any other basis that is by applicable law. Harassment or discrimination by any AB employee, officer, or director will not be tolerated.

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AB's policies on nondiscrimination and sexual or unlawful harassment and how to report instances of such conduct can be found in the Employee Handbook. All employees, officers, and directors are responsible for knowing and abiding by these policies. Anyone who reports in good faith an incident of discrimination or harassment will not be subject to reprisals. Anyone who is found to have engaged in conduct inconsistent with these policies will be subject to appropriate disciplinary action, up to and including termination of employment or dismissal from the Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.Conflicts of Interest / Unlawful Actions**

A "conflict of interest" may exist when a person's private interests are contrary to, or inconsistent with, the interests of AB's clients or to the interests of AB or its unitholders.

A conflict situation can arise when an AB employee, consultant, officer, or director takes actions or has interests (business, financial or otherwise) that may make it difficult to perform his or her work objectively and effectively. Conflicts of interest may arise, for example, when an AB employee, or a member of his or her family,<sup>1</sup> receives improper personal benefits (including personal loans, services, or payment for services that the AB employee performs in the course of AB business) as a result of his or her position at AB or gains personal enrichment or benefits through access to confidential information.

Conflicts may also arise when an AB employee, or a member of his or her family, holds a significant financial interest in a company that does an important amount of business with AB or has outside business interests that may result in divided loyalties or compromise independent judgment.

Moreover, conflicts may arise when making securities investments for personal accounts or when determining how to allocate trading opportunities. Conflicts of interest can also arise because of personal relationships with others within or outside AB (such as family relationships, romantic relationships, or close friendships) that may compromise objectivity and independent judgment.

AB has adopted policies, procedures, and controls designed to manage conflicts of interest, including the Compliance Manual, *Policy and Procedures for Giving and Receiving Gifts and Entertainment*, copies of which can be found on the Legal and Compliance Department intranet site. These policies highlight additional potential conflicts of interest.

Conflicts of interest can arise in many common situations; despite one's best efforts to avoid them. This Code does not attempt to identify all possible conflicts of interest. Literal compliance with each of the specific procedures will not shield you from liability for personal trading or other conduct that violates your fiduciary duties to our clients. All AB employees, consultants, officers, and directors are encouraged to seek clarification of, and discuss questions about, potential conflicts of interest. If you have questions about a particular situation or become aware of a conflict or potential conflict, you should bring it to the attention of your supervisor, the General Counsel, the Conflicts Officer, the Chief Compliance Officer or a representative of the Legal and Compliance Department or Human Capital.

In addition to the specific prohibitions contained in the Code, you are, of course, subject to a general requirement not to engage in any act or practice that would defraud our clients. This general prohibition (which also applies specifically in connection with the purchase and sale of a Security held or to be acquired or sold, as this phrase is defined in the Appendix) includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Making any untrue statement of a material fact or employing any device, scheme, or artifice to defraud a client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Omitting to state (or failing to provide any information necessary to properly clarify any statements made, in light of the circumstances) a material fact, thereby creating a materially misleading impression;

<sup>1</sup> For purposes of this section of the Code, unless otherwise specifically provided, (i) "family" means your spouse/domestic partner, parents, children, siblings, in-laws by marriage (i.e., mother-in-law, father-in- law, son-in-law, and/or daughter-in-law) and anyone who shares your home; and (ii) "relative" means members of your family (as defined), your aunts and uncles, and your first cousins.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Accepting any compensation for the purchase or sale of any property to or for a fund or other client account;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Making investment decisions, changes in research ratings and trading decisions other than exclusively for the benefit of, and in the best interest of, our clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Using information about investment or trading decisions or changes in research ratings (whether considered, proposed or made) to benefit or avoid economic injury to you or anyone other than our clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Taking, delaying or omitting to take any action with respect to any research recommendation, report or rating or any investment or trading decision for a client in order to avoid economic injury to you or anyone other than our clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Purchasing or selling a security on the basis of knowledge of a possible trade by or for a client with the intent of personally profiting from personal holdings in the same or related securities ("front-running" or "scalping");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revealing to any other person (except in the normal course of your duties on behalf of a client) any information regarding securities transactions by any client or the consideration by any client of any such securities transactions; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Engaging in any act, practice or course of business that operates or would operate as a fraud or deceit on a client or engaging in any manipulative practice with respect to any client.

AB requires all employees, covered consultants and directors to disclose any Conflicts of Interests that any person may become aware of upon joining AB or during their course of employment or board service.

These disclosures must be made to the Compliance Department through StarCompliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.Insider Trading**

There are instances where AB employees or directors may have confidential "inside" information about AB or its affiliates, or about a company with which we do business, or about a company in which we may invest on behalf of clients that is not known to the investing public. AB employees must maintain the confidentiality of such information. If a reasonable investor would consider this information important in reaching an investment decision, the AB employee or director with this information must not buy or sell securities of any of the companies in question or give this information to another person who trades in such securities. This rule is very important, and AB has adopted the following three specific policies that address it: Policy and Procedures Concerning Purchases and Sales of AB Units, Policy and Procedures Concerning Purchases and Sales of AB Closed-End Mutual Funds, and Policy and Procedures Regarding Insider Trading and Control of Material Nonpublic Information (collectively, the "AB Insider Trading Policies"). A copy of the AB Insider Trading Policies may be found on the Legal and Compliance Department intranet site. All AB employees and directors are required to be familiar with these policies<sup>2</sup> and to abide by them.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.Personal Trading: Summary of Restrictions**

AB recognizes the importance to its employees and directors of being able to manage and develop their own and their dependents' financial resources through long-term investments and strategies. However, because of the potential conflicts of interest inherent in our business, our industry and AB have implemented certain standards and limitations designed to minimize these conflicts and help ensure that we focus on meeting our duties as a fiduciary for our clients. As a general matter, AB discourages personal investments by employees in individual securities and encourages personal investments in managed collective vehicles, such as mutual funds.

AB senior management believes it is important for employees to align their own personal interests with the interests of our clients. **Consequently, employees are encouraged to invest in the mutual fund products and services offered by AB, where available and appropriate.**

<sup>2</sup> The subject of insider trading will be covered in various Compliance training programs and materials.

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The policies and procedures for personal trading are set forth in full detail in the AB Personal Trading Policies and Procedures, included in the Code as Appendix A. The following is a summary of the major requirements and restrictions that apply to personal trading by employees, their immediate family members and other financial dependents.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Employees must disclose all of their brokerage accounts to the Legal and Compliance Department;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Employees may maintain brokerage accounts only at specified designated broker-dealers (exceptions may apply outside of the U.S.);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Employees must pre-clear all securities trades with the Legal and Compliance Department (via the StarCompliance Code of Ethics application) prior to placing trades with their broker-dealer (prior supervisory approval is required for portfolio managers, research analysts, traders, persons with access to AB research, and others designated by the Legal and Compliance Department);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Employees may only make twenty trades in individual securities during any rolling thirty calendar-day period;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Employee purchases of individual securities, ETFs, ETNs, closed-end funds and AB managed or sub-advised open-end mutual funds) are subject to a 60-day holding period and 30-day buy- back period (6 months for AB Japan Ltd.);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Employees may not engage in short-term trading of a mutual fund in violation of that fund's short-term trading policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Employees may not participate in initial public offerings of equity securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Employees must get written approval, and make certain representations, in order to participate in limited or private investments, including hedge funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Employees must submit initial and annual holding reports, disclosing all securities and holdings in mutual funds managed by AB held in personal accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Employees must, on a quarterly basis, submit or confirm reports identifying all transactions in securities and mutual funds managed by AB in personal accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Legal and Compliance Department has the authority to deny:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Any personal trade by an employee if the security is being considered for purchase or sale in a client account; there are open orders for the security on a trading desk; or the security appears on any AB restricted list;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any short sale by an employee for a personal account if the security is being held long in AB- managed portfolios; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Any personal trade by a portfolio manager or research analyst in a security that is subject to a blackout period as a result of client portfolio trading or recommendations to clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Separate requirements and restrictions apply to Directors who are not employees of AB, as explained in further detail in the AB Personal Trading Policies and Procedures, Appendix A of this document.

This summary should not be considered a substitute for reading, understanding, and complying with the detailed restrictions and requirements that appear in the AB Personal Trading Policies and Procedures, included as Appendix A to the Code.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.Outside Directorships and Other Outside Activities and Interests**

Although activities outside of AB are not necessarily a conflict of interest, a conflict may exist depending upon your position within AB and AB's relationship with the particular activity in question. Outside activities may also create a potential conflict of interest if they cause an AB employee to choose between that interest and the interests of AB or any client of AB. AB recognizes that the guidelines in this Section are not applicable to directors of AB who do not also serve in management positions within AB.

**Important Note for Research Analysts:** *Notwithstanding the standards and prohibitions that follow in this section, any employee who acts in the capacity of a research analyst is prohibited from serving on any board of directors or trustees or in any other capacity with respect to any company, public or private, whose business is directly or indirectly related to the industry covered by that research analyst.*<br>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.Board Member or Trustee**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.AB employees are prohibited from serving on any board of directors or trustees or in any other management capacity of any unaffiliated public company. However, under certain limited circumstances, Compliance will consider exceptions to this prohibition where the employee has received prior written approval from both AB's Chief Executive Officer and their supervisor. Once the necessary business approvals have been obtained, the employee must submit an <u>Outside Business Activities Approval Form</u> for review and approval by Compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.No AB employee shall serve on any board of directors or trustees or in any other management capacity of any private company (other than not-for-profit organizations, see below) without prior written approval from the employee's supervisor and Compliance Department via an <u>Outside</u> <u>Business</u> <u>Activities</u> <u>Approval</u> <u>Form.</u> This approval is also subject to review by, and may require the approval of, AB's Chief Executive Officer. The decision as to whether to grant such authorization will be based on a determination that such service would not be inconsistent with the interests of any client, as well as an analysis of the time commitment and potential personal liabilities and responsibilities associated with the outside affiliation.<sup>3</sup> Any AB employee who serves as a director, trustee or in any other management capacity of any private company must resign that position prior to the company becoming a publicly traded company.

<sup>3</sup> Such authorization requires an agreement on the part of the employee to not hold him or herself out as acting on behalf of AB (or any affiliate) and to use best efforts to ensure that AB's name (or that of any AB affiliated company) is not used in connection with the proposed affiliation (other than in a "bio" section), and in particular, activities relating to fundraising or to the advancement of a specific entity mission or agenda.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.Not-for-Profit Organizations: Generally, no approval is required to serve as a trustee/board member of not-for-profit organizations such as religious organizations, foundations, educational institutions, co-ops, private clubs etc., provided that (a) the organization has not issued, and does not have future plans to issue, publicly held securities, including debt obligations; and/or (b) the employee does not act in any investment-related advisory capacity (i.e., any direct or indirect role relating to investment advice or choosing investment advisers; serving on investment committee).<sup>4</sup> If the employee does act in such a capacity, or the organization has issued or plans to issue, public securities, the <u>Not-For-Profit Activities</u> <u>Disclosure Form</u> must be submitted and approved.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.This approval requirement applies regardless of whether an AB employee plans to serve as a director of an outside business organization (1) in a personal capacity or (2) as a representative of AB or of an entity within the AB Group holding a corporate board seat on the outside organization (e.g., where AB or its clients may have a significant but non- controlling equity interest in the outside company).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.New employees with pre-existing relationships are required to resign from the boards of public companies and seek and obtain the required approvals to continue to serve on the boards of private companies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.Other Affiliations**

AB discourages employees from committing to secondary employment, particularly if it poses any conflict in meeting the employee's ability to satisfactorily meet all job requirements and business needs. Before an AB employee accepts a second job, that employee must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Complete and submit an <u>Outside Business Activities Approval Form</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;• Ensure that AB's business takes priority over the secondary employment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ensure that no conflict of interest exists between AB's business and the secondary employment (see also footnote 3); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Require no special accommodation for late arrivals, early departures, or other special requests associated with the secondary employment.

For employees associated with any of AB's registered broker-dealer subsidiaries, written approval of the Chief Compliance Officer for the subsidiary is also required.<sup>5</sup> New employees with pre-existing relationships are required to ensure that their affiliations conform to these restrictions and must obtain the requisite approvals. On a periodic basis, such employees will be required to confirm that the circumstances of the approved activities have not changed.

<sup>4</sup> Indeed, AB recognizes that its employees often engage in community service in their local communities and engage in a variety of charitable activities, and it commends such service. However, it is the duty of every AB employee to ensure that all outside activities, even charitable or pro bono activities, do not constitute a conflict of interest or are not otherwise inconsistent with employment by AB. Accordingly, although no approval is required, each employee must use his/her best efforts to ensure that the organization does not use the employee's affiliation with AllianceBernstein, including his/her corporate title, in any promotional (other than a "bio" section) or fundraising activities, or to advance a specific mission or agenda of the entity. Such positions also must be reported to the firm pursuant to other periodic requests for information (e.g., the AB 10-K questionnaire).

<sup>5</sup> In the case of AB subsidiaries that are holding companies for consolidated subgroups, unless otherwise specified by the holding company's Chief Executive Officer, this approval may be granted by the Chief Executive Officer or Chief Financial Officer of each subsidiary or business unit within such a consolidated subgroup.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.Outside Financial or Business Interests**

AB employees should be cautious with respect to personal investments that may lead to conflicts of interest or raise the appearance of a conflict. Conflicts of interest in this context may arise in cases where an AB employee, a member of his or her family, or a close personal acquaintance, holds a substantial interest in a company that has significant dealings with AB or any of its subsidiaries either on a recurring or "one-off" basis. For example, holding a substantial interest in a family- controlled or other privately-held company that does business with, or competes against, AB or any of its subsidiaries may give rise to a conflict of interest or the appearance of a conflict. In contrast, holding shares in a widely held public company that does business with AB from time to time may not raise the same types of concerns. Prior to making any such personal investments, AB employees must pre-clear the transaction, in accordance with the Personal Trading Policies and Procedures, attached as Appendix A of this Code, and should consult as appropriate with their supervisor, the Conflicts Officer, General Counsel, Chief Compliance Officer or other representative of the Legal and Compliance Department.

AB employees should also be cautious with respect to outside business interests that may create divided loyalties, divert substantial amounts of their time and/or compromise their independent judgment. If a conflict of interest situation arises, you should report it to your supervisor, the Conflicts Officer, General Counsel, Chief Compliance Officer and/or other representative of AB's Human Capital or Legal and Compliance Department. Business transactions that benefit relatives or close personal friends, such as awarding a service contract to them or a company in which they have a controlling or other significant interest, may also create a conflict of interest or the appearance of a conflict. AB employees must consult their supervisor and/or the Conflicts Officer, General Counsel, Chief Compliance Officer or other representative of AB's Human Capital or Legal and Compliance Department before entering into any such transaction. New employees that have outside financial or business interests (as described herein) should report them as required and bring them to the attention of their supervisor immediately.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.Gifts, Entertainment, and Inducements**

Business gifts and entertainment are designed to build goodwill and sound working relationships among business partners. However, under certain circumstances, gifts, entertainment, favors, benefits, and/or job offers may be or appear to be attempts to "purchase" favorable treatment. Accepting or offering such inducements could raise doubts about an AB employee's ability to make independent business judgments in our clients' or AB's best interests. For example, a problem would arise if (i) the receipt by an AB employee of a gift, entertainment or other inducement would compromise, or could be reasonably viewed as compromising, that individual's ability to make objective and fair business decisions on behalf of AB or its clients, or (ii) the offering by an AB employee of a gift, entertainment or other inducement appears to be an attempt to obtain business through improper means or to gain any special advantage in our business relationships through improper means.

These situations can arise in many different circumstances (including with current or prospective suppliers and clients) and AB employees should keep in mind that certain types of inducements may constitute illegal bribes, pay-offs or kickbacks. In particular, the rules of various securities regulators place specific constraints on the activities of persons involved in the sales and marketing of securities. AB has adopted the <u>Policy and Procedures for Giving and Receiving Gifts and Entertainment</u> to address these and other matters. AB employees must familiarize themselves with this policy and comply with its requirements, which include reporting the acceptance of most business meals, gifts and entertainment to the Compliance Department. A copy of this policy can be found on the Legal and Compliance Department intranet site and will be supplied by the Compliance Department upon request.

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Each AB employee must use good judgment to ensure there is no violation of these principles. If you have any question or uncertainty about whether any gifts, entertainment or other types of inducements are appropriate, please contact your supervisor or a representative of AB's Legal and Compliance Department and/or the Conflicts Officer, as appropriate. If you feel uncomfortable utilizing the normal channels, issues may be brought to the attention of the Company Ombudsman, who is a neutral, independent, informal and confidential resource to assist employees with concerns about AB business matters that may implicate issues of ethics or questionable practices. Please see Section 25 for additional information on the Company Ombudsman.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.Compliance with Anti-Corruption Laws**

AB employees should be aware that AB strictly prohibits the acceptance, offer, payment or authorization, whether directly or via a third party, of any bribe, and any other form of corruption, whether involving a government official or an employee of a public or private commercial entity. Therefore, it is the responsibility of all AB employees to adhere to all applicable anti-corruption laws and regulations in the jurisdictions in which they do business, including the U.S. Foreign Corrupt Practices Act, the U.K. Bribery Act, and similar international laws regulating payments to public and private sector individuals (collectively, the "Anti-Corruption Laws").

We expect all AB employees to refuse to make or accept questionable and/or improper payments. As a component of this commitment, no AB employee may give money, gifts, or anything else of value (which include providing jobs or internships) to any official or any employee of a governmental or commercial entity if doing so could reasonably be construed as an attempt to provide AB with an improper business advantage. In addition, any proposed payment or gift to a government official, including employees of government-owned or controlled enterprises (e.g., sovereign wealth and pension funds, public utilities, and national banks), must be reviewed in advance by a representative of the Legal and Compliance Department, even if such payment is common in the country of payment (see discussion of the Anti-Corruption Laws below and in the firm's <u>Anti-Bribery and Corruption Policy</u>). AB employees should be aware that they do not actually have to make the payment to violate AB's policy and the law — merely offering, promising or authorizing it will be considered a violation.

In order to ensure that AB fully complies with the requirements of the Anti-Corruption Laws, employees must be familiar with the firm's <u>Anti-Bribery and Corruption Policy</u>. Generally, the Anti- Corruption Laws make it illegal (with civil and criminal penalties) for AB, and its employees and agents, to provide anything of value to public or private sector employees, directly or indirectly, for the purpose of obtaining an improper business advantage (which can include improperly securing government licenses and permits). Accordingly, the use of AB funds or assets (or those of any third party) to make a payment directly or through another person or company for any illegal, improper and/or corrupt purpose is strictly prohibited.

It is often difficult to determine at what point a business courtesy extended to another person crosses the line into becoming excessive, and what ultimately could be considered a bribe. Therefore, no entertainment or gifts may be offered to, or travel or hotel expenses paid for, any public official, including employees of government-owned or controlled enterprises, under any circumstances, without the express prior written approval (e-mail correspondence is acceptable) of the General Counsel, Chief Compliance Officer, or their designees in the Legal and Compliance Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.Political Contributions/Activities**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.By or on behalf of AB**

Election laws in many jurisdictions generally prohibit political contributions by corporations to candidates. Many local laws also prohibit corporate contributions to local political campaigns. In accordance with these laws, AB does not make direct contributions to any candidates for national or local offices where applicable laws make such contributions illegal. In these cases, contributions to political campaigns must not be, nor appear to be, made with or reimbursed by AB assets or resources. AB assets and resources include (but are not limited to) AB facilities, personnel, office supplies, letterhead, telephones, electronic communication

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systems and fax machines. This means that AB office facilities may not be used to host receptions or other events for political candidates or parties which include any fund-raising activities or solicitations. In limited circumstances, AB office facilities may be used to host events for public office holders as a public service, but only where steps have been taken (such as not providing to the office holder a list of attendees) to avoid the facilitation of fund-raising or solicitations either during or after the event, and where the event has been pre-approved in writing by the General Counsel or Deputy General Counsel.

Please see the <u>Policy and Procedures for Giving and Receiving Gifts and Entertainment</u>, which can be found on the Legal and Compliance Department intranet site, for a discussion relating to political contributions suggested by clients.

Election laws in many jurisdictions allow corporations to establish and maintain political action or similar committees, which may lawfully make campaign contributions. AB or companies affiliated with AB may establish such committees or other mechanisms through which AB employees may make political contributions, if permitted under the laws of the jurisdictions in which they operate. Any questions about this policy should be directed to the General Counsel or Chief Compliance Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.By Employees / Directors**

AB employees who hold or seek to hold political office must do so on their own time, whether through vacation, after work hours or on weekends. Additionally, the employee must complete and submit an <u>Outside Business Activities Approval Form</u> for review and approval to ensure that there are no conflicts of interest with AB business.

AB employees may make personal political contributions as they see fit in accordance with all applicable laws and the guidelines in the <u>Policy and Procedures for Giving and Receiving Gifts and Entertainment</u>, the <u>Pay-to-Play: Political Contributions Policy</u>, as well as the pre-clearance requirement as described below.

Certain employees involved with the offering or distribution of municipal fund securities (e.g., a "529 Plan") or acting as a director for certain subsidiaries must also adhere to the restrictions and reporting requirements of the Municipal Securities Rulemaking Board.

Several (U.S.) states and localities have enacted "pay-to-play" laws. Some of these laws could prohibit AB from entering into a government contract for a certain number of years if a covered employee makes or solicits a covered contribution. Other jurisdictions require AB to report contributions made by certain employees, without the accompanying ban on business. In certain jurisdictions, the laws also cover the activities of the spouse and dependent children of the covered person. In response to these laws, in addition to SEC Rule 206(4)-5, which also prohibits certain political contributions, AB has in place a pre-clearance requirement, under which all employees must pre-clear with the Compliance Department through StarCompliance, all personal political contributions (including those of their spouses and dependent children) made to, or solicited on behalf of, any (U.S.) federal, state or local candidate, political party, or political entity.

Similarly, members of the AB Board of Directors are covered by the Policy Regarding Pre- Clearance of Personal Political Contributions by AllianceBernstein Directors, which also requires that they pre-clear with the Compliance Department all personal political contributions (including those of their spouses and dependent children) made to, or solicited on behalf of, any U.S. federal, state or local candidate or political party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12."Ethical Wall" Policy**

AB has established a policy entitled Insider Trading and Control of Material Non-Public Information ("<u>Ethical Wall Policy</u>"), a copy of which can be found on the Legal and Compliance Department intranet site. This policy was established to prevent the flow of material non-public information about a listed company or its securities from AB employees who receive such information in the course of their employment to those AB employees performing investment management activities. If "Ethical Walls" are in place, AB's investment management activities may continue despite the knowledge of material non-public information by other AB employees

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involved in different parts of AB's business. "Investment management activities" involve making, participating in, or obtaining information regarding purchases or sales of securities of public companies or making, or obtaining information about, recommendations with respect to purchases or sales of such securities. Given AB's extensive investment management activities, it is very important for AB employees to familiarize themselves with AB's Ethical Wall Policy and abide by it.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.Use of Client Relationships**

As discussed previously, AB owes fiduciary duties to each of our clients. These require that our actions with respect to client assets or vendor relationships be based solely on the clients' best interests and avoid any appearance of being based on our own self-interest. Therefore, we must avoid using client assets or relationships to inappropriately benefit AB.

Briefly, AB regularly acquires services directly for itself, and indirectly on behalf of its clients (e.g., brokerage, investment research, custody, administration, auditing, accounting, printing and legal services). Using the existence of these relationships to obtain discounts or favorable pricing on items purchased directly for AB or for clients other than those paying for the services may create conflicts of interest. Accordingly, business relationships maintained on behalf of our clients may not be used to leverage pricing for AB when acting for its own account unless all pricing discounts and arrangements are shared ratably with those clients whose existing relationships were used to negotiate the arrangement and the arrangement is otherwise appropriate under relevant legal/regulatory guidelines. For example, when negotiating printing services for the production of AB's Form 10-K and annual report, we may not ask the proposed vendor to consider the volume of printing business that they may get from AB on behalf of the investment funds we manage when proposing a price. On the other hand, vendor/service provider relationships with AB may be used to leverage pricing on behalf of AB's clients.

In summary, while efforts made to leverage our buying power are good business, efforts to obtain a benefit for AB as a result of vendor relationships that we structure or maintain on behalf of clients may create conflicts of interest, which should be escalated to your line manager and Compliance so that they can be reviewed and addressed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.Corporate Opportunities and Resources**

AB employees owe a duty to AB to advance the firm's legitimate interests when the opportunity to do so arises and to use corporate resources exclusively for that purpose. Corporate opportunities and resources must not be taken or used for personal gain or promotion. AB employees are prohibited from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Taking for themselves personally opportunities that are discovered through the use of company property, information or their position;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Using company property, information, resources, or their company position for personal gain or promotion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Creating personal websites related to the financial services industry or which promote themselves and their skills based on their responsibilities at AB;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Using company property, information or their company position on personal websites or social media platforms (e.g. YouTube, Twitter, LinkedIn, Facebook, etc.) or other marketing channels in a way that is inconsistent with AB's <u>Use of Social Media Policy</u>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Competing with AB directly or indirectly.

Please also refer to the <u>Policy and Procedures for Giving and Receiving Gifts and Entertainment</u>, and its Appendix B, the Code of Conduct Regarding the Purchase of Products and Services on Behalf of AB and its Clients, which can be found on the Legal and Compliance Department intranet site.

AB directors also owe AB a duty of loyalty, which requires, among other things, that they may not misappropriate company opportunities or misuse company assets for their personal benefit.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.Antitrust and Fair Dealing**

AB believes that the welfare of consumers is best served by economic competition. Our policy is to compete vigorously, aggressively, and successfully in today's increasingly competitive business climate and to do so at all times in compliance with all applicable antitrust, competition and fair dealing laws in all the markets in which we operate. We seek to excel while operating honestly and ethically, never through taking unfair advantage of others. Each AB employee should endeavor to deal fairly with AB's customers, suppliers, competitors, and other AB employees. No one should take unfair advantage through manipulation, concealment, abuse of privileged information, misrepresentation of material facts or any other unfair dealing practices.

The antitrust laws of many jurisdictions are designed to preserve a competitive economy and promote fair and vigorous competition. We are all required to comply with these laws and regulations. AB employees involved in marketing, sales and purchasing, contracts or in discussions with competitors have a particular responsibility to ensure that they understand our standards and are familiar with applicable competition laws. Because these laws are complex and can vary from one jurisdiction to another, AB employees are urged to seek advice from the General Counsel, Chief Compliance Officer or Corporate Secretary if questions arise. Please also refer to the Policy and Procedures for Giving and Receiving Gifts and Entertainment, which can be found on the Legal and Compliance Department intranet site, for a discussion relating to some of these issues.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.Recordkeeping and Retention**

Properly maintaining and retaining company records is of the utmost importance. AB employees are responsible for ensuring that AB's business records are properly maintained and retained in accordance with applicable laws and regulations in the jurisdictions where it operates. AB Employees should familiarize themselves with these laws and regulations. Please see the Record Retention Policy on the Legal and Compliance intranet site for more information.

As AB onboards new electronic communications platforms, employees are required to comply with the *<u>Use of Electronic Communications</u>* policy. Additional information on AB's requirements around electronic communications can be found on the *<u>Electronic Communications</u>* section of the Compliance Manual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.Improper Influence on Conduct of Audits**

AB employees, and persons acting under their direction, are prohibited from taking any action to coerce, manipulate, mislead, hinder, obstruct or fraudulently influence any external auditor, internal auditor or regulator engaged in the performance of an audit or review of AB's financial statements and/or procedures. AB employees are required to cooperate fully with any such audit or review.

The following is a non-exhaustive list of actions that might constitute improper influence:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Offering or paying bribes or other financial incentives to an auditor, including offering future employment or contracts for audit or non-audit services;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Knowingly providing an internal or external auditor or regulator with inaccurate or misleading data or information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Threatening to cancel or canceling existing non-audit or audit engagements if the auditor objects to the company's accounting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Seeking to have a partner or other team member removed from the audit engagement because such person objects to the company's accounting;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Knowingly altering, tampering or destroying company documents;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Knowingly withholding pertinent information; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Knowingly providing incomplete information.

Under the (U.S.) Sarbanes Oxley Law, any false statement -- that is, any lie or attempt to deceive an investigator -- may result in criminal prosecution.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.Accuracy of Disclosure**

Securities and other laws impose public disclosure requirements on AB and require it to regularly file reports and financial information and make other submissions to various regulators and stock market authorities around the globe. Such reports and submissions must comply with all applicable legal requirements and may not contain misstatements or omit material facts.

AB employees who are directly or indirectly involved in preparing such reports and submissions, or who regularly communicate with the press, investors and analysts concerning AB, must ensure within the scope of the employee's job activities that such reports, submissions and communications are (i) full, fair, timely, accurate and understandable, and (ii) meet applicable legal requirements.

This applies to all public disclosures, oral statements, visual presentations, press conferences and media calls concerning AB, its financial performance and similar matters. In addition, members of AB's Board, executive officers and AB employees who regularly communicate with analysts or actual or potential investors in AB securities are subject to the <u>AB Regulation FD Compliance Policy</u> copy of the policy can be found on the Legal and Compliance Department intranet site.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.Confidentiality**

Subject to Section 23, AB employees must maintain the confidentiality of sensitive non-public and other confidential information entrusted to them by AB or its clients and vendors and must not disclose such information to any persons except when disclosure is authorized by AB or mandated by regulation or law. However, disclosure may be made to (1) other AB employees who have a bona fide "need to know" in connection with their duties, (2) persons outside AB (such as attorneys, accountants or other advisers) who need to know in connection with a specific mandate or engagement from AB or who otherwise have a valid business or legal reason for receiving it and have executed appropriate confidentiality agreements, or (3) regulators pursuant to an appropriate written request (see Section 23).

Confidential information includes all non-public information that might be of use to competitors, or harmful to AB or our clients and vendors, if disclosed. The identity of certain clients may also be confidential. Intellectual property (such as confidential product information, trade secrets, patents, trademarks, and copyrights), business, marketing and service plans, databases, records, salary information, unpublished financial data and reports as well as information that joint venture partners, suppliers or customers have entrusted to us are also viewed as confidential information. Please note that the obligation to preserve confidential information continues even after employment with AB ends.

To safeguard confidential information, AB employees should observe at least the following procedures:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Special confidentiality arrangements may be required for certain parties, including outside business associates and governmental agencies and trade associations, seeking access to confidential information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Papers relating to non-public matters should be appropriately safeguarded;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Appropriate controls for the reception and oversight of visitors to sensitive areas should be implemented and maintained;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Document control procedures, such as numbering counterparts and recording their distribution, should be used where appropriate;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If an AB employee is out of the office in connection with a material non-public transaction, staff members should use caution in disclosing the AB employee's location;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sensitive business conversations, whether in person or on the telephone, should be avoided in public places and care should be taken when using portable computers and similar devices in public places; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• E-mail messages and attachments containing material non-public information should be treated with similar discretion (including encryption, if appropriate), and recipients should be made aware of the need to exercise similar discretion.

Nothing herein, or in any contractual confidentiality provision to which any employee is subject, prohibits employees from reporting possible violations of law or regulation to any governmental agency or entity, or self-regulatory authority, or from making other disclosures that are protected under the whistleblower provisions of state or federal law or regulation. Employees do not need AB's prior authorization to make any such reports or disclosures and are not required to notify AB that they have made such reports or disclosures.

Please see the <u>Privacy Policy</u> on the Legal and Compliance intranet site for more information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20.Protection and Proper Use of AB Assets**

AB employees have a responsibility to safeguard and make proper and efficient use of AB's property. Every AB employee also has an obligation to protect AB's property from loss, fraud, damage, misuse, theft, embezzlement or destruction. Acts of fraud, theft, loss, misuse, carelessness and waste of assets may have a direct impact on AB's profitability. Any situations or incidents that could lead to the theft, loss, fraudulent or other misuse or waste of AB property should be reported to your supervisor or a representative of AB's Human Capital or Legal and Compliance Department as soon as they come to an employee's attention. Should an employee feel uncomfortable utilizing the normal channels, issues may be brought to the attention of the Company Ombudsman, who is a neutral, independent, informal and confidential resource to assist employees with concerns about AB business matters that may implicate issues of ethics or questionable practices. Please see Section 25 for additional information on the Company Ombudsman.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21.Policy on Intellectual Property**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.Overview**

Ideas, inventions, discoveries, and other forms of so-called "intellectual property" are becoming increasingly important to all businesses, including ours. Recently, financial services companies have been applying for and obtaining patents on their financial product offerings and "business

methods" for both offensive and defensive purposes. For example, business method patents have been obtained for information processing systems, data gathering and processing systems, billing and collection systems, tax strategies, asset allocation strategies and various other financial systems and strategies. The primary goals of the AB policy on intellectual property are to preserve our ability to use our own proprietary business methods, protect our IP investments and reduce potential risks and liabilities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.Employee Responsibilities**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• New Products and Methods. Employees must maintain detailed records and all work papers related to the development of new products and methods in a safe and secure location.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Trademarks. Clearance must be obtained from the Legal and Compliance Department before any new word, phrase or slogan, which we consider proprietary and in need of trademark protection, is adopted or used in any written materials. To obtain clearance, the proposed word, phrase or slogan and a brief description of the products or services for which it is intended to be used should be communicated to the Legal and Compliance Department sufficiently well in advance of any actual use in order to permit any necessary clearance investigation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.Company Policies and Practices**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Ownership. Employees acknowledge that any discoveries, inventions, or improvements (collectively, "Inventions") made or conceived by them in connection with, and during the course of, their employment belong, and automatically are assigned, to AB. AB can keep any such Inventions as trade secrets or include them in patent applications, and Employees will assist AB in doing so. Employees agree to take any action requested by AB, including the execution of appropriate agreements and forms of assignment, to evidence the ownership by AB of any such Invention.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Use of Third-Party Materials. In performing one's work for, or on behalf of AB, Employees will not knowingly disclose or otherwise make available or incorporate anything that is proprietary to a third party without obtaining appropriate permission.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Potential Infringements. Any concern regarding copyright, trademark, or patent infringement should be immediately communicated to the Legal and Compliance Department. Questions of infringement by AB will be investigated and resolved as promptly as possible.

By certifying in accordance with Section 27 of this Code, the individual subject to this Code agrees to comply with AB's policies and practices related to intellectual property as described in this Section 21.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.Exceptions from the Code**

In addition to the exceptions contained within the specific provisions of the Code, the General Counsel, Chief Compliance Officer (or his or her designee) may, in very limited circumstances, grant other exceptions under any Section of this Code on a case-by-case basis. In these situations, the following may be required as deemed necessary considering the circumstances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.Written Statement and Supporting Documentation**

The individual seeking the exception may need to furnish to the Chief Compliance Officer, or designee, as applicable:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.A written statement detailing the request or efforts made to comply with the requirement from which the individual seeks an exception;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.A written statement containing a representation and warranty that (i) compliance with the requirement would impose a severe undue hardship on the individual and (ii) the exception would not, in any manner or degree, harm or defraud a client, violate the general principles herein or compromise the individual's or AB's fiduciary duty to any client; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.Any supporting documentation that the Chief Compliance Officer may require.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.Compliance Interview**

The Chief Compliance Officer (or designee) may conduct an interview with the individual or take such other steps deemed appropriate in order to determine whether granting the exception will not, in any manner or degree, harm or defraud a client, violate the general principles herein or compromise the individual's or AB's fiduciary duty to any client; and shall maintain all written statements and supporting documentation, as well as documentation of the basis for granting the exception.

**PLEASE NOTE:** To the extent required by law or NYSE rule, any waiver or amendment of this Code for AB's executive officers (including AB's Chief Executive Officer, Chief Financial Officer, and Principal Accounting Officer) or directors shall be made at the discretion of the Board of AllianceBernstein Corporation and promptly disclosed to the unitholders of AllianceBernstein Holding pursuant to Section 303A.10 of the NYSE Exchange Listed Company Manual.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23.Regulatory Inquiries, Investigations and Litigation**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.Requests for Information**

Governmental agencies and regulatory organizations may from time to time conduct surveys or make inquiries that request information about AB, its customers or others that generally would be considered confidential or proprietary.

*All regulatory inquiries concerning AB are to be handled by the Chief Compliance Officer or General Counsel. Employees receiving such inquiries should refer such matters immediately to the Legal and Compliance Department.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.Types of Inquiries**

Regulatory inquiries may be received by mail, e-mail, telephone or personal visit. In the case of a personal visit, demand may be made for the immediate production or inspection of documents. While any telephone or personal inquiry should be handled in a courteous manner, the caller or visitor should be informed that responses to such requests are the responsibility of AB's Legal and Compliance Department. Therefore, the visitor should be asked to wait briefly while a call is made to the Chief Compliance Officer or General Counsel for guidance on how to proceed. In the case of a telephone inquiry, the caller should be referred to the Chief Compliance Officer or General Counsel or informed that his/her call will be promptly returned. Letter or e-mail inquiries should be forwarded promptly to the Chief Compliance Officer or General Counsel, who will provide an appropriate response.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.Responding to Information Requests**

Subject to Section 23, under no circumstances should any documents or material be released to a regulator without prior approval of the Chief Compliance Officer or General Counsel. Likewise, no employee should have substantive discussions with any regulatory personnel without prior consultation with either of these individuals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.Use of Outside Counsel**

It is the responsibility of the Chief Compliance Officer or General Counsel to retain and provide information to AB's outside counsel in those instances deemed appropriate and necessary.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**e.Regulatory Investigation**

Any employee that is notified that they are the subject of a regulatory investigation, whether in connection with his or her activities at AB or at a previous employer, must immediately notify the Chief Compliance Officer or General Counsel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**f.Litigation**

Any receipt of service or other notification of a pending or threatened action against the firm should be brought to the immediate attention of the General Counsel or Chief Compliance Officer. These individuals also should be informed of any instance in which an employee is sued in a matter involving his/her activities on behalf of AB. Notice also should be given to either of these individuals upon receipt of a subpoena for information from AB relating to any matter in litigation or receipt of a garnishment lien or judgment against the firm or any of its clients or employees. The General Counsel or Chief Compliance Officer will determine the appropriate response.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.Compliance and Reporting of Misconduct / "Whistleblower" Protection**

No Code can address all specific situations. Accordingly, each AB employee is responsible for applying the principles set forth in this Code in a responsible fashion and with the exercise of good judgment and common sense. Whenever uncertainty arises, an AB employee should seek guidance from an appropriate supervisor or a representative of Human Capital or the Legal and Compliance Department before proceeding.

All AB employees should promptly report any practices or actions the employee believes to be inappropriate or inconsistent with any provisions of this Code. In addition, all employees must promptly report any actual violations of the Code to the General Counsel, the Chief Compliance Officer or a designee. Any person reporting a violation in good faith, or asserting any right provided by law or in exercising their duties as set forth in our policies, will be protected against reprisals. If you have information about Code or other AB policy violations or potentially illegal or unethical activity, visit the Legal & Compliance Loop site for further information or visit <u>https://secure.ethicspoint.com/domain/media/en/gui/44414/index.html</u>.

If you feel uncomfortable utilizing the formal channels, issues may be brought to the attention of the Company Ombudsman, who is a neutral, independent, informal and confidential resource to assist employees with concerns about AB business matters that may implicate issues of ethics or questionable practices. Please see Section 25 for additional information on the Company Ombudsman.

Nothing herein, or in any contractual confidentiality provision to which any employee is subject, prohibits employees from reporting possible violations of law or regulation to any governmental agency or entity, or self-regulatory authority, or from making other disclosures that are protected under the whistleblower provisions of state or federal law or regulation. Employees do not need AB's prior authorization to make any such reports or disclosures and are not required to notify AB that they have made such reports or disclosures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25.Company Ombudsman**

AB's Company Ombudsman provides a neutral, confidential, informal and independent communications channel where any AB employee can obtain assistance in surfacing and resolving work-related issues. The primary purpose of the Ombudsman is to help AB:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Safeguard its reputation and financial, human and other company assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Maintain an ethical and fiduciary culture;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Demonstrate and achieve its commitment to "doing the right thing;" and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Comply with relevant provisions of the Sarbanes-Oxley Act of 2002, the U.S. Sentencing Guidelines, as well as AB's 2003 SEC Order, New York Stock Exchange Rule 303A.10 and other laws, regulations and policies.

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The Ombudsman seeks to provide early warnings and to identify changes that will prevent malfeasance and workplace issues from becoming significant or recurring. The Ombudsman has a reporting relationship to the AB CEO, the Audit Committee of the Board of Directors of AllianceBernstein Corporation and independent directors of AB's U.S. mutual fund boards.

Any type of work-related issue may be brought to the Ombudsman, including potential or actual financial malfeasance, security matters, inappropriate business practices, compliance issues, unethical behavior, violations of law, health and safety issues, and employee relations issues. The Ombudsman supplements but does not replace existing formal channels for reporting work-related issues, such as Human Capital, Legal and Compliance, Internal Audit and line management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26.Sanctions**

Upon learning of a violation of this Code, any member of the AB Group, with the advice of the General Counsel, the Chief Compliance Officer and/or the AB Code of Ethics Oversight Committee, may impose such sanctions as such member deems appropriate, including, among other things, restitution, censure, suspension or termination of service. Persons subject to this Code who fail to comply with it may also be violating the U.S. federal securities laws or other federal, state or local laws within their particular jurisdictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**27.Annual Certifications**

Each person subject to this Code must certify at least annually to the Chief Compliance Officer that he or she has read and understands the Code. As part of these certifications, the employee confirms that they are (1) subject to and have complied with the Code's provisions, (2) disclosed or reported all personal securities transactions, conflicts of interests and other items required, and (3) understand and complied with all related policies referenced within this Code (e.g., electronic communications). The Chief Compliance Officer may require interim certifications for significant changes to the Code.

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| | | | |
|:---|:---|:---|:---|
| | **Personal Trading Policies and Procedures** | **Personal Trading Policies and Procedures** | |
| | **Appendix A** | **Appendix A** | |
| **1.** | **Overview** | **Overview** | **1** |
|  | a. | Introduction | 1 |
|  | b. | Definitions | 1 |
|  | 4. | "Client" | 1 |
| **2.** | **Requirements and Restrictions – All Employees** | **Requirements and Restrictions – All Employees** | **4** |
|  | a. | General Standards | 4 |
|  | b. | Disclosure of Personal Accounts | 5 |
|  | c. | Designated Brokerage Account | 6 |
|  | d. | Pre-Clearance Requirement | 6 |
|  | e. | Limitation on the Number of Trades | 6 |
|  | f. | Short-Term Trading | 7 |
|  | g. | Short Sales | 7 |
|  | h. | Trading in AB Units and AB Funds | 7 |
|  | i. | Securities Being Considered for Purchase or Sale | 8 |
|  | j. | Restricted List | 9 |
|  | k. | Dissemination of Research Information | 9 |
|  | l. | Initial Public Offerings | 10 |
|  | m. | Limited Offerings/Private Placements | 10 |
| **3.** | **Additional Restrictions–Portfolio Managers** | **Additional Restrictions–Portfolio Managers** | **10** |
|  | a. | Blackout Periods | 11 |
|  | b. | Actions During Blackout Periods | 11 |
|  | c. | Transactions Contrary to Client Positions | 11 |
| **4.** | **Additional Restrictions–Research Analysts** | **Additional Restrictions–Research Analysts** | **11** |
|  | a. | Blackout Periods | 12 |
|  | b. | Actions During Blackout Periods | 12 |
|  | c. | Actions Contrary to Ratings | 12 |
| **5.** | **Additional Restrictions–Buy-Side Equity Traders** | **Additional Restrictions–Buy-Side Equity Traders** | **12** |
| **6.** | **Additional Restrictions–Alternate Investment Strategies Groups** | **Additional Restrictions–Alternate Investment Strategies Groups** | **13** |
| **7.** | **Exceptions to the Personal Trading Policy** | **Exceptions to the Personal Trading Policy** | **13** |
| **8** | **Reporting Requirements** | **Reporting Requirements** | **13** |
|  | a. | Duplicate Confirmations and Account Statements | 13 |
|  | b. | Initial Holdings Reports by Employees | 13 |
|  | c. | Quarterly Reports by Employees–including Certain Funds and Limited Offerings | 14 |
|  | d. | Annual Certification by Employees with Managed Accounts | 14 |
|  | e. | Annual Holdings Reports by Employees | 14 |
|  | f. | Report and Certification of Adequacy to the Board of Directors of Fund Clients | 15 |
|  | g. | Report Representations | 15 |
|  | h. | Maintenance of Reports | 15 |
| **9.** | **Reporting Requirements for Directors who are not Employees** | **Reporting Requirements for Directors who are not Employees** | **15** |
|  | a. | Outside Directors / Affiliated Outside Directors | 16 |

---

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**APPENDIX A**

**AllianceBernstein L.P.**

<u>PERSONAL</u> <u>TRADING</u> <u>POLICIES</u> <u>AND</u> <u>PROCEDURES</u>

**1. Overview**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.Introduction**

AB recognizes the importance to its employees of being able to manage and develop their own and their dependents' financial resources through long-term investments and strategies. However, because of the potential conflicts of interest inherent in our business and our industry, AB has implemented certain standards and limitations designed to minimize these conflicts and help ensure that we focus on meeting our duties as a fiduciary for our clients. **Employees should be aware that their ability to liquidate positions may be severely restricted under these policies, including during times of market volatility.** Therefore, as a general matter, AB discourages personal investments by employees in individual securities and encourages personal investments in managed collective vehicles, such as mutual funds.

AB senior management believe it is important for employees to align their own personal interests with the interests of our clients. **Consequently, employees are encouraged to invest in the mutual fund products and services offered by AB, where available and appropriate.**

**Definitions.**

The following definitions apply for purposes of this Appendix A of the Code; however additional definitions are contained in the text itself.<sup>1</sup>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1."AB Funds"** means any AB-sponsored, managed, or sub-advised fund registered under the Investment Company Act of 1940 or relevant regulations in other jurisdictions. For purposes of this policy, "AB Funds" are Reportable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2."Automatic Investment Plan"** refers to a plan that makes automatic purchases for the plan owner based on an agreed schedule and allocation. Dividend Reinvestment Plans, or DRIPs, are one type of "automatic investment plan".

Employees may be asked to submit additional documentation evidencing the automatic investment plan as part of AB's compliance monitoring.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3."Beneficial Ownership"** refers to an <u>Employee's</u> or their <u>Dependent's</u> ability to directly or indirectly profit or share in the profits of a security transaction. In general, the definition of "beneficial ownership" is interpreted in the same manner as the provisions set forth under Section 16 of the Securities Exchange Act of 1934.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4."Client"** means any person or entity, including an investment company, for which AB serves as investment manager or adviser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5."Chief Compliance Officer"** refers to AllianceBernstein LP's Chief Compliance Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6."Code of Ethics Oversight Committee"** refers to the committee of AB's senior officers that is responsible for monitoring compliance with the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7."Control"** has the meaning set forth in Section 2(a)(9) of the 1940 Act.

<sup>1</sup> Due to the importance that AB places on promoting responsible personal trading, we have applied the definition of "access person," as used in Rule 17j-1 under the 1940 Act and Rule 204A-1 under the Advisers Act, and related requirements to all AB employees and officers. We have drafted special provisions for directors of AB who are not also employees of AB.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8."Dependent"** refers to any individual who resides within an <u>Employee</u>'s household and relies on the Employee for financial support. While not exhaustive, examples include an Employee's spouse, domestic partner, parent, child, sibling or in-laws who share the same household as the Employee. Note that a "dependent" may spend a portion of this time away from the household (for example a child in college) but will still be considered a "dependent" if they rely on the Employee for any financial support.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9."Designated Broker"** refers to brokerage firms where AB receives automated data feeds for transactions and positions for <u>Personal Accounts</u>.<sup>2,3</sup> The current list of "Designated Brokers" can be found <u>here</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10."Director"** means any person who serves in the capacity of a director of AllianceBernstein Corporation. "Affiliated Outside Director" means any Director who is not an Employee (as defined below) but who is an employee of an entity affiliated with AB. "Outside Director" means any Director who is neither an Employee (as defined below) nor an employee of an entity affiliated with AB.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11."Employee"** refers to any person who is an employee or officer of AB, including part-time employees and consultants (acting in the capacity of a portfolio manager, trader or research analyst, or others at the discretion of the Compliance Department or their Business Unit) under the Control of AB.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12."Exempt Security"** refers to the following security types:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Securities issued by the Government of the United States, e.g. US Treasury bonds and US Savings bonds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• High quality money market or short-term debt instruments, including CDs, commercial paper, and repurchase agreements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shares of money market funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Open-end mutual funds, excluding AB Funds and ETFs

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cryptocurrency and digital assets<sup>4</sup>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Other security types as determined by AB's Code of Ethics Compliance team.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13."Initial Public Offering"** means an offering of equity Securities registered under the Securities Act of 1933 (the "1933 Act"), the issuer of which, immediately before the registration, was not subject to the reporting requirements of Sections 13 or 15(d) of the Exchange Act, as well as similar offerings of Securities issued outside the United States.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14."Investment Personnel"** refers to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any Employee who acts in the capacity of a portfolio manager, research analyst or trader or any other capacity (such as an assistant to one of the foregoing) and in connection with his or her regular duties makes or participates in making, or is in a position to be aware of, recommendations regarding the purchase or sale of securities by a Client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any Employee who receives or has access to sell-side research paid for by AB or AB client assets (e.g. Soft-Dollar Commissions).

<sup>2</sup> Exceptions may apply in certain non-U.S. locations. Please consult with your local compliance officer.

<sup>3</sup> Non-discretionary accounts at Sanford C. Bernstein & Co., LLC. may only be used for the following purposes: (a) Custody of securities and related activities (such as receiving and delivering positions, corporate actions, and subscribing to offerings commonly handled by operations such as State of Israel bonds, etc.); (b) Transacting in US Treasury securities; and (c) Transacting in AB products outside of a private client relationship (such as hedge funds and AB/SCB mutual funds). All equity and fixed income transactions (other than US Treasuries) are prohibited.

<sup>4</sup> Note that while cryptocurrency and other digital assets are not considered a security under the current definition, this is listed as an "exempt security" to help clarify for employees that cryptocurrency and digital assets are out of scope for the requirements under this policy.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any other Employee designated as such by the Legal and Compliance Department or their Business Unit; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any natural person who Controls AB and who obtains information concerning recommendations made to a Client regarding the purchase or sale of securities by the Client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15."Limited Offering"** means an offering that is exempt from registration under the 1933 Act pursuant to Sections 4(2) or 4(6) thereof or pursuant to Rules 504, 505 or 506 under the 1933 Act, as well as similarly exempted offerings of Securities issued outside the United States. Investments in hedge funds are typically sold in a limited offering setting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16."Managed Account"** is an account where the <u>Employee</u> or their <u>Dependent</u> has authorized a third-party to exercise investment discretion and control over the transactions and holdings in the account. Since neither the Employee nor their Dependent directs or approves the investments themselves and/or the timing of the investment for "managed accounts," these accounts are exempt from most of the requirements and restrictions found in Section 2 of this Policy, including the pre-clearance requirement. Please see Section 2 below for more details. "Managed accounts" that meet the definition of a <u>Personal Account</u> must be reported in StarCompliance.

When declaring a "managed account", Employees may be asked to provide additional account information so that Compliance can confirm that the account meets this definition.

Note that managed accounts are not required to be held with <u>Designated Brokers</u>, but employees will be required to submit account statements and trade confirmations if and when requested by the Compliance Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17."Non-volitional Transaction"** is a transaction where the <u>Employee</u> or their <u>Dependent</u> does not have any influence or control over the trade and/or the timing of the trade. Examples of non- volitional trades are options being exercised or expiring on an Employee, sale of fractional shares when transferring assets from your current broker to a different one, and corporate actions where the employee does not have the ability to elect participation.

As part of AB's compliance monitoring, Employees may be asked to submit additional documentation evidencing that a transaction was non-volitional.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;18.**"Personal Account"** refers to any account that meets the following criteria:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Employee or a Dependent of the Employee has Beneficial Ownership of the account or has investment authority over any transactions and/or timing of the transactions in the account, even if they are not the beneficial owner of the account; AND

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The account has the ability to invest in Reportable Securities (defined below).

<u>Managed</u> <u>Accounts</u> that meet the above definition of a "personal account" must be disclosed.

Please note that most 401K accounts, HSA Investment accounts, and 529 Plans will not require reporting or pre-clearance of transactions since they typically only permit investments in a limited list of non-<u>AB</u> <u>Funds</u>; However, if they have the ability to invest in Reportable Securities, including AB Funds, then these accounts would be considered "personal accounts" and should be reported as required by this Policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19."Purchase or Sale of a Security"** includes, among other transactions, the writing or purchase of an option to sell a Security and any short sale of a Security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20."Reportable Security" or "Security"** means any security that does not meet the definition of an <u>Exempt Security</u>.

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*<u>IMPORTANT</u> <u>NOTES</u>*<u>:</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Exchange-Traded Funds ("ETFs") are "reportable securities," and therefore are subject to the governing rules, including the pre-clearance requirement. All ETFs require pre-clearance but will be subject to expedited approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Direct investment in Bitcoin or other crypto currencies are currently not covered under this definition of Security. However, as global regulators move closer to regulating these securities, the lack of prohibition and AB's position on pre- clearance and/or reporting, is subject to change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21.**A Security **is "Being Considered for Purchase or Sale"** when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An AB research analyst issues research information regarding initial coverage of, or changing a rating with respect to, a company or issuer. This applies to research from both the buy-side and sell-side analysts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A portfolio manager has indicated his or her intention to purchase or sell a Security; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An open order<sup>5</sup> in the Security exists on any buy-side trading desk.

*This is not an exhaustive list. At the discretion of the Legal and Compliance Department, a Security may be deemed "Being Considered for Purchase or Sale" even if none of the above events have occurred, particularly if a portfolio manager is contemplating the purchase or sale of that Security, as evidenced by written or digital communication or the manager's preparation of, or request for, research.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22."Security held or to be acquired or sold"** means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any Security which, within the most recent 15 days (i) is or has been held by a Client in an AB-managed account or (ii) is being or has been considered by AB for purchase or sale for the Client; and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any option to purchase or sell, and any Security convertible into or exchangeable for, a Security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23."StarCompliance Code of Ethics application"** means the web-based application used to electronically pre-clear personal securities transactions and file many of the reports required herein. The application can be accessed via the AB network at: <u>https://alliance-</u> <u>ng.starcompliance.com</u>.

**2. Requirements and Restrictions – All Employees**

The following the standards which must be observed by Employees:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.General Standards**

Employees have an obligation to conduct their personal investing activities and related Securities transactions lawfully and in a manner that avoids actual or potential conflicts between their own interests and the interests of AB and its clients. Employees must carefully consider the nature of their AB responsibilities - and the type of information that they might be deemed to possess in light of any particular securities transaction - before engaging in any investment-related activity or transaction.

<sup>5</sup> Defined as any client order on a buy-side trading desk which has not been completely executed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Material Nonpublic Information:** Employees in possession of material nonpublic information about or affecting securities, or their issuer, are prohibited from buying or selling such Securities, or advising any other person to buy or sell such securities. Similarly, they may not disclose such information to anyone without the permission of the General Counsel or Chief Compliance Officer. Please see AB's Insider Trading Policies, which can be found on the Legal and Compliance Department's intranet site.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Short-Term Trading:** Employees are encouraged to adopt long-term investment strategies (see Section 2(f) for applicable holding and buy-back periods for individual securities). Similarly, purchases of shares of most mutual funds should be made for investment purposes. Employees are therefore prohibited from engaging in transactions in a mutual fund that are in violation of the fund's prospectus, including any applicable short-term trading or market-timing prohibitions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Personal Responsibility:** It is the responsibility of each Employee to ensure that all securities transactions in Personal Accounts are made in strict compliance with the restrictions and procedures in the Code and this Appendix A and otherwise comply with all applicable legal and regulatory requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• **Affiliated Directors and Outside Directors:** The personal trading restrictions of Appendix A of the Code do not apply to any Affiliated Director or Outside Director, provided that at the time of the transaction, they have no actual knowledge that the Security involved is "Being Considered for Purchase or Sale." Affiliated Directors and Outside Directors, however, are subject to reporting requirements as described in Section 9 below.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.Disclosure of Personal Accounts**

Upon joining AB, all Employees must disclose their Personal Accounts to the Compliance Department within 10 business days of joining and take all necessary actions to close any accounts, other than Managed Accounts, held with Non-designated Brokers<sup>6</sup> (see next section). It is each Employee's responsibility to ensure that their accounts are either linked to AB's broker feeds, if held at a Designated Broker, or to provide duplicate statements and trade confirmations upon request from Compliance. Do not assume that the broker-dealer will automatically arrange for this information to be set up and forwarded correctly.

New accounts opened by Employees after their initial disclosure should be disclosed immediately to Compliance. In general, pre-approval is not required to open the new account; however, Personal Accounts, except for Managed Accounts, should only be opened at a Designated Broker.

<sup>6</sup> Exceptions may apply in certain non-U.S. locations. Please consult with your local compliance officer.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.Designated Brokerage Account**<sup>7</sup>

Personal Accounts of an Employee, other than Managed Accounts, may only be held at a Designated Broker. Under limited circumstances, the Compliance Department may grant exceptions to this policy and approve the use of other broker-dealers or custodians (such as in the case of proprietary products that can only be held at specific firms). In addition, the Compliance Department may in the future modify this list.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.Pre-Clearance Requirement**

Employees and their Dependents may not purchase or sell, directly or indirectly, any <u>Reportable</u> <u>Security</u> in which they have (or after such transaction would have) <u>Beneficial Ownership</u> unless the Employee obtains the prior approval from the Compliance Department and, *in the case of Investment Personnel, their manager or a designated approver*. Pre-clearance requests and any approvals must be made prior to executing the transaction, through the use of the appropriate pre- clearance form, which can be accessed via the StarCompliance Code of Ethics application at <u>http://starcompliance.acml.com//.</u> These requests will document (a) the details of the proposed transaction and (b) representations as to compliance with the personal trading restrictions of this Code.

*Pre-Clearance requests are reviewed by team members in Nashville and may not be addressed until 8:00 a.m. Central time. Please note that trade requests submitted after 2:30 p.m. Central time will be placed on hold until the following day.*

The Legal and Compliance Department will maintain an electronic log of all pre-clearance requests and indicate the approval or denial of the request in the log.

PLEASE NOTE: When a <u>Security is Being Considered for Purchase or Sale</u> for a Client (see Section 2(i) below) or is being purchased or sold for a Client following the approval on the same day of a personal trading request form for the same Security, the Legal and Compliance Department is authorized to cancel the personal order if (a) it has not been executed and the order exceeds a market value of $50,000 or (b) the Legal and Compliance Department determines, after consulting with the trading desk and the appropriate business unit head (if available), that the order, based on market conditions, liquidity and other relevant factors, could have an adverse impact on a Client or on a Client's ability to purchase or sell the Security or other Securities of the issuer involved.

**<u>The</u> <u>following</u> <u>transactions</u> <u>are</u> <u>exempt</u> <u>from</u> <u>the</u> <u>pre-clearance</u> <u>requirement</u>:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transactions in a Managed Account,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transactions made pursuant to an Automatic Investment Plan,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-volitional Transactions, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transactions in AB Funds if through the ABI Employee Desk or through an employee's Voya- sponsored 401K account (if not transacted via ABI or through Voya, pre-clearance is required).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**e.Limitation on the Number of Trades**

No more than an aggregate of twenty (20) transactions in <u>Reportable Securities</u> may occur in an Employee's <u>Personal Accounts</u> during any rolling thirty-day period.

**<u>Transactions</u> <u>excluded</u> <u>from</u> <u>the</u> <u>trade</u> <u>limit</u> <u>are:</u>**

Transactions in a Managed Account,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transactions made pursuant to an Automatic Investment Plan,

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-volitional Transactions, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transactions in AB Funds.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**f.Short-Term Trading**

Employees must always conduct their personal trading activities lawfully, properly and responsibly, and are encouraged to adopt long-term investment strategies that are consistent with their financial resources and objectives. AB discourages short-term trading strategies, and Employees are cautioned that such strategies may inherently carry a higher risk of regulatory and other scrutiny. In any event, excessive or inappropriate trading that interferes with job performance, or compromises the duty that AB owes to its Clients will not be tolerated.

**Employees are subject to a mandatory holding period for all <u>Reportable Securities</u> of 60 days and a buy-back period of 30 days.** By regulation, employees of AB Japan Ltd. are subject to a 6- month hold. Under Danish regulation, the CEO of CPH Capital, AB's Danish entity, must comply with a 6-month holding period for securities, excluding funds. A first-in-first-out accounting methodology will be applied to a series of Securities purchases for determining compliance with this holding rule. As noted in Section 2(a)(ii), the applicable holding period for AB open-end funds is also 60 days.

**<u>Exceptions</u> <u>to</u> <u>the</u> <u>short-term</u> <u>trading</u> <u>rules</u> <u>(i.e.,</u> <u>the</u> <u>60-day</u> <u>hold</u> <u>and</u> <u>30-day</u> <u>buy-</u><u>back):</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Securities transactions in Personal Accounts of Dependents which are not directed by the Employee are subject to the mandatory holding and buy-back periods. However, after 30 calendar days, a sell transaction will be permitted for these Personal Accounts if necessary to minimize a loss;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transactions in Managed Accounts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transactions made pursuant to an Automatic Investment Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-volitional Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sales of Securities held by the Employee or their Dependents prior to their employment with AB;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shares in the publicly traded units of AB that were acquired in connection with a compensation plan may be sold within the 60-day holding period. However, units purchased on the open market must comply with the holding period requirements herein; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Shares received through an employee stock plan or compensation program by a Dependent may be sold within the 60-day holding period.

Trades made in violation of this section of the Code shall be unwound, or, if that is not practicable, all profits from the short-term trading will be disgorged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**g.Short Sales**

The Legal and Compliance Department will prohibit an Employee from engaging in any short sale of a Security in a Personal Account if, at the time of the transaction, any Client has a long position in such Security in an AB-managed portfolio (except that an Employee may engage in short sales against the box and covered call writing provided that these personal Securities transactions do not violate the prohibition against short- term trading).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**h.Trading in AB Units and AB Funds**

During certain times of the year Employees may be prohibited from conducting transactions in the equity units of AB.

------

Additional restricted periods may be required for certain individuals and events, and the Legal and Compliance Department will announce when such additional restricted periods are in effect.

As AB Units and AB Funds are Reportable Securities, all are subject to the same pre-clearance process as other Reportable Securities, with certain additional Legal and Compliance Department approval required. See the *<u>Statement of Policy and Procedures Concerning Purchases and Sales of AB Units</u>* and the *<u>Statement of Policy and Procedures Concerning Purchases and Sales of AB Closed-End Mutual Funds</u>*.

Employees are not permitted to transact in short sales of AB Units.

**Note that Employees are not permitted to establish automatic investment plans, including but not limited to dividend reinvestment plans (or DRIPs) for their AB units as it could result in purchases outside of the trading window.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**i.Securities Being Considered for Purchase or Sale**

Subject to the exceptions below, Employees and their Dependents are prohibited from purchasing or selling a Security (or a derivative product), or engaging in any short sale of a Security, in a Personal Account if, at the time of the transaction, the <u>Security is Being Considered for Purchase or</u> <u>Sale</u> for a Client or is being purchased or sold for a Client.

**<u>This</u> <u>prohibition</u> <u>will</u> <u>not</u> <u>apply</u> <u>to the</u> <u>following</u>:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transactions in Managed Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transactions made pursuant to an Automatic Investment Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-volitional Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Securities received as part of the Employee's or their Dependent's employer stock or compensation plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• De minimis transactions, defined as follows:

**<u>Fixed</u> <u>Income</u> <u>Securities</u>**

Any of the following Securities, if at the time of the transaction, the Employee has no actual knowledge that the Security is Being Considered for Purchase or Sale by a Client or that the Security is being purchased or sold by or for the Client:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Fixed income securities transactions having a principal amount not exceeding $25,000; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Non-convertible debt securities and non-convertible preferred stocks which are rated by at least one nationally recognized statistical rating organization ("NRSRO") in one of the three highest investment grade rating categories.

**<u>Equity</u> <u>Securities</u>**

Any equity Security transaction, or series of related transactions, involving shares of common stock and excluding options, warrants, rights and other derivatives, provided:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Any orders are entered after 10:00 a.m. and before 3:00 p.m. and are not designated as "market on open" or "market on close;"

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The aggregate value of the transactions does not exceed (1) $250,000, and (2) 0.1% of the daily trade volume of the security; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.The Employee has no actual knowledge that the Security is Being Considered for Purchase or Sale by a Client or that the Security is being purchased or sold by or for the Client.

PLEASE NOTE: Even if a trade qualifies for a de minimis exception, it must be pre-cleared with the Legal and Compliance Department in advance of being placed.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**j.Restricted List**

A Security may not be purchased or sold in a Personal Account if, at the time of the transaction, the Security appears on the AB Daily Restricted List and is restricted for Employee transactions. The Daily Restricted List is made available each business day to all Employees via <u>The Loop</u>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**k.Dissemination of Research Information**

An Employee may not buy or sell any Security for a Personal Account that is the subject of "significantly new" or "significantly changed" research during the period, commencing with the approval of the research and continuing for twenty-four hours subsequent to the first publication or release of the research. An Employee also may not buy or sell any Security on the basis of research that AB has not yet made public or released. The terms "significantly new" and "significantly changed" include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.The initiation of coverage by an AB research analyst;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Any change in a research rating or position by an AB analyst;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Any other rating, view, opinion, or advice from an AB analyst, the issuance (or re-issuance) of which in the opinion of such research analyst, or his or her director of research, would be reasonably likely to have a material effect on the price of the security.

**<u>This</u> <u>prohibition</u> <u>will</u> <u>not</u> <u>apply</u> <u>to the</u> <u>following</u>:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transactions in Accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transactions made pursuant to an Automatic Investment Plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-volitional Transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Securities received as part of the Employee's or their Dependent's employer stock or compensation plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• De minimis transactions, defined as follows:

**<u>Fixed</u> <u>Income</u> <u>Securities</u>**

***This exception does not apply to research issued by an affiliate of AB.*** Any of the following Securities, if at the time of the transaction, the Employee has no actual knowledge that the Security is Being Considered for Purchase or Sale by a Client or that the Security is being purchased or sold by or for the Client:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Fixed income securities transactions having a principal amount not exceeding $25,000; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Non-convertible debt securities and non-convertible preferred stocks which are rated by at least one nationally recognized statistical rating organization ("NRSRO") in one of the three highest investment grade rating categories.

**<u>Equity</u> <u>Securities</u>**

***This exception does not apply to research issued by an affiliate of AB.*** Any equity security transaction, or series of related transactions, involving shares of common stock and excluding options, warrants, rights and other derivatives, provided:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Any orders are entered after 10:00 a.m. and before 3:00 p.m. and are not designated as "market on open" or "market on close";

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The aggregate value of the transactions do not exceed (1) $250,000, and (3) 1% of the daily trade volume of the security; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.The Employee has no actual knowledge that the Security is Being Considered for Purchase or Sale by a Client or that the Security is being purchased or sold by or for the Client.

------

PLEASE NOTE: Even if a trade qualifies for a de minimis exception, it must be pre-cleared with the Legal and Compliance Department in advance of being placed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**l.Initial Public Offerings**

Employees or their Dependent whose Personal Accounts are covered under this Code (see Section 1(b)(14)) are not permitted to acquire for a Personal Account any equity Security issued in an Initial Public Offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**m.Limited Offerings/Private Placements**

Employees and their Dependent whose Personal Accounts are covered under this Code (see Section 1(b)(14)), are not permitted to acquire any Security issued in any limited or private offering (please note that hedge funds are sold as limited or private offerings) without prior written approval and documentation for the basis for granting approval from the Chief Compliance Officer (or designee) and the Employee's manager or the manager's designee. The Chief Compliance Officer, in determining whether approval should be given, will take into account, among other factors, whether the investment opportunity should be reserved for a Client and whether the opportunity is being offered to the individual by virtue of his or her position with AB. Employees authorized to acquire Securities issued in a limited or private offering must disclose that investment when they play a part in any Client's subsequent consideration of an investment in the issuer. In such a case, the decision of AB to purchase Securities of that issuer for a Client will be subject to an independent review by Investment Personnel with no personal interest in such issuer.8 Additional restrictions or disclosures may be required if there is a business relationship between the Employee or AB and the issuer of the offering. See also "Additional restrictions that apply to employees of the Private Alternatives Group (Section 6)".

**3. Additional Restrictions–Portfolio Managers**

In addition to the requirements and restrictions on Employee trading in Section 2 of this Appendix A of the Code, the following restrictions apply to all persons acting in the capacity of a Portfolio Manager of a Client account.

For purposes of the restrictions in this section, a portfolio manager is defined as an Employee who has decision- making authority regarding specific securities to be traded for Client accounts, as well as such Employee's supervisor. Please see Section 6 for restrictions relating to the Alternative Investment Strategies Groups.

***General Prohibition:*** *No person acting in the capacity of a portfolio manager will be permitted to trade for a Personal Account, a Security that is an eligible portfolio investment in that manager's strategy (e.g., Large Cap Growth).*

*This prohibition does not apply to transactions directed by Dependents whose <u>Personal Accounts</u> are covered under this Code (see Section 1(b)(18)) provided that the Employee has no input into the investment decision. Nor does it apply to sales of securities held prior to the application of this restriction or employment with the firm. However, such transactions are subject to the following additional restrictions.*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.Blackout Periods**

No person acting in the capacity of a portfolio manager will be permitted to trade a Security for a Personal Account within seven calendar days before and after any Client serviced in that manager's strategy (e.g., Large Cap Growth) trades in the same Security. If a portfolio manager engages in such a personal securities transaction during a blackout period, the Chief Compliance Officer may break the trade or, if the trade cannot be broken, the Chief Compliance Officer may direct that any profit realized on the trade be disgorged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.Actions During Blackout Periods**

No person acting in the capacity of a portfolio manager shall delay or accelerate a Client trade due to a previous purchase or sale of a Security in a Personal Account. In the event that a portfolio manager determines that it is in the best interest of a Client to buy or sell a Security for the account of the Client within seven days of the purchase or sale of the same Security in a Personal Account, the portfolio manager must contact the Chief Compliance Officer or their designee immediately, who may direct that the trade in the Personal Account be canceled, grant an exception or take other appropriate action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.Transactions Contrary to Client Positions**

No person acting in the capacity of a portfolio manager shall trade a Security in a Personal Account contrary to investment decisions made on behalf of a Client, unless the portfolio manager represents and warrants in the personal trading request form that (1) it is appropriate for the Client account to buy, sell or continue to hold that Security and (2) the decision to purchase or sell the Security for the Personal Account arises from the need to raise or invest cash or some other valid reason specified by the portfolio manager and approved by the Chief Compliance Officer or their designee and is not otherwise based on the portfolio manager's view of how the Security is likely to perform.

**4. Additional Restrictions–Research Analysts**

In addition to the requirements and restrictions on Employee trading in Section 2 of this Appendix A of the Code, the following restrictions apply to all persons acting in the capacity of a research analyst.

***General Prohibition****: No person acting in the capacity of research analyst will be permitted to trade for his or her Personal Account, any security of an issuer that is in the sector covered by such research analyst (i.e., an equity research analyst cannot trade in the fixed income securities of a covered issuer nor can a fixed income analyst trade in the equity securities of one). This prohibition does not apply to transactions directed by Dependents whose <u>Personal Accounts</u> are covered under this Code (see Section 1(b)(18)), provided that the employee has no input into the investment decision. Sales of securities held prior to the application of this restriction or employment with the firm are also considered exempt from this prohibition. However, such transactions are subject to the following additional restrictions.*

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.Blackout Periods**

No person acting as a research analyst shall trade a Security for a Personal Account within seven calendar days before and after making a change in a rating or other published view with respect to that Security. If a research analyst engages in such a personal securities transaction during a blackout period, the Chief Compliance Officer may break the trade or, if the trade cannot be broken, the Chief Compliance Officer may direct that any profit realized on the trade be disgorged.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.Actions During Blackout Periods**

No person acting as a research analyst shall delay or accelerate a rating or other published view with respect to any Security because of a previous purchase or sale of a Security in such person's Personal Account. In the event that a research analyst determines that it is appropriate to make a change in a rating or other published view within seven days of the purchase or sale of the same Security in a Personal Account, the research analyst must contact the Chief Compliance Officer or their designee immediately, who may direct that the trade in the Personal Account be canceled, grant an exception or take other appropriate action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.Actions Contrary to Ratings**

No person acting as a research analyst shall trade a Security (to the extent such Security is included in the research analyst's research universe) contrary to an outstanding rating or a pending ratings change or traded by a research portfolio, unless (1) the research analyst represents and warrants in the personal trading request form that (as applicable) there is no reason to change the outstanding rating and (2) the research analyst's personal trade arises from the need to raise or invest cash, or some other valid reason specified by the research analyst and approved by the Chief Compliance Officer or their designee and is not otherwise based on the research analyst's view of how the security is likely to perform.

**5. Additional Restrictions–Buy-Side Equity Traders**

In addition to the requirements and restrictions on Employee trading in Section 2 of this Appendix A of the Code, the following restrictions apply to all persons acting in the capacity of Trader on any buy-side equity trading desk.

***General Prohibition****: Employees acting in the capacity of a buy-side equity trader are not permitted to trade for their personal account any security that is among the eligible portfolio investments traded on that Desk.*

*This prohibition does not apply to transactions directed by Dependents whose Personal Accounts are covered under this Code (see Section 1(b)(18)) provided that the employee has no input into the investment decision.*

*Nor does it apply to sales of securities held prior to the application of this restriction or employment with the firm. Such transactions are, of course, subject to all other Code provisions.*

___________________

<sup>8</sup> Any Employee who acquires (or any new Employee with a pre-existing position in) an interest in any private investment fund (including a "hedge fund") or any other Security that cannot be purchased and held in an account at a Designated Broker shall be exempt from the Designated Broker requirement as described in this Appendix A of the Code. The Legal and Compliance Department may require an explanation as to why such Security cannot be purchased and held in such manner. Transactions in these Securities nevertheless remain subject to all other requirements of this Code, including applicable private placement procedures, pre-clearance requirements and blackout-period trading restrictions.

------

**6. Additional Restrictions–Alternate Investment Strategies Groups**

In addition to the requirements and restrictions on Employee trading in Section 2 of this Appendix A of the Code, the following restrictions apply to all members of the firm's Alternative Investment Management Groups, including Private Alternatives and Private Credit Investors, as well as to the members of the Investment Policy Group and Board of Directors of Bernstein Alternative Investment Strategies, LLC.

***General Prohibition****: No member of the groups listed above will be permitted to directly invest in a privately offered fund or other investment product that is managed by an adviser other than AB and is within the scope of the current or contemplated funds or other products in which the Alternative Investment Management Groups may invest. All such investments must be submitted to the StarCompliance team for review and approval by their manager and the Compliance team.*

**7. Exceptions to the Personal Trading Policy**

In addition to the exceptions contained within this policy, the Chief Compliance Officer or their designee may grant other exceptions on a case-by-case basis. Requests for exceptions will be reviewed for any potential conflicts and may require business review and approval before the request can be granted.

**8. Reporting Requirements**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.Duplicate Confirmations and Account Statements**

All Employees must direct their brokers to add their Personal Accounts to AllianceBernstein's automated data feeds, if the Account is held with a Designated Broker, on a timely basis. For accounts held at Non- Designated Brokers or not on an automated data feed, Employees are required to manually update transactions once executed and to provide trade confirmations and/or account statements to the Compliance Department upon request.

*The Compliance Department will review such documents for Personal Accounts to ensure that AB's policies and procedures are being complied with and make additional inquiries as necessary. Access to duplicate confirmations and account statements will be restricted to those persons who are assigned to perform review functions, and all such materials will be kept confidential except as otherwise required by law.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.Initial Holdings Reports by Employees**

All Employee must, within 10 calendar days of commencing of employment with AB, provide a signed and dated Initial Holdings Report to the Chief Compliance Officer. New employees will receive an electronic request to perform this task via the StarCompliance Code of Ethics application. Employees who cannot complete this via StarCompliance may provide an electronic version of this request. The report must contain the following information current as of a date not more than 45 days prior to the date of the report:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reportable Securities (including private investments as well as any AB Funds) held in a Personal Account of the Employee or their Dependent, including the title and type of Security, and as applicable, the exchange ticker symbol or CUSIP number, number of shares and/or principal amount of each Security/fund beneficially owned. Note that Reportable Securities held in Managed Accounts do not need to be reported;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The name of any broker-dealer or financial institution with which the Employee or their Dependent maintains a Personal Account in which any Reportable Securities are held for the Employee or Dependent; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Details of any outside business affiliations.

Employees must then take all necessary actions to bring their accounts into compliance with the Designated Broker guidelines detailed in Section 2(c) of this Appendix.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c.Quarterly Reports by Employees–including Certain Funds and Limited Offerings**

Following each calendar quarter, the Legal and Compliance Department will issue to each Employee via the StarCompliance Code of Ethics application a Quarterly Transactions Certification containing all transactions in Reportable Securities in the Employee's Personal Accounts during the quarter based on information reported to AB by the Employees and their brokers. Non-volitional Transactions and transactions in Managed Accounts need not be included for purposes of this reporting requirement.

Within thirty (30) days following the end of each calendar quarter, every Employee must review the form, certify its accuracy, and as necessary make any changes to the pre-populated information.

For each such Security, the report must contain the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the date of the transaction, the title, and as applicable the exchange ticker symbol or CUSIP number, interest rate and maturity date, number of shares, and principal amount of each Security involved; (2) the nature of the transaction (i.e., purchase or sale or any other type of acquisition or disposition); (3) the price of the Security at which the transaction was effected; (4) the name of the broker or other financial institution through which the transaction was effected; and (5) the date the Employee submits the report.

In addition, any new Personal Account established during the calendar quarter must be reported, in real time, including:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the name of the broker or other financial institution with which the account was established and (2) the date the account was established.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**d.Annual Certification by Employees with Managed Accounts**

On an annual basis, by a date to be specified by the Compliance Department (typically August 15th), each Employee who has reported managed accounts in the StarCompliance Code of Ethics application must provide to the Chief Compliance Officer via the Star Compliance system a signed and dated certification. This certification confirms:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All managed accounts have been disclosed by the Employee in the StarCompliance application; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Employee had no influence or investment discretion as to the transactions or holdings of such accounts during the year.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**e.Annual Holdings Reports by Employees**

On an annual basis, by a date to be specified by the Compliance Department (typically February 15th), each Employee must provide to the Chief Compliance Officer via the Star Compliance system a signed and dated Annual Holdings Report containing data current as of a date not more than forty five (45)days prior to the date of the submission.<sup>9</sup> The report must disclose:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All Securities (including shares of mutual funds managed by AB and limited offerings), held in a Personal Account of the Employee, including the title and type of security, and as applicable the exchange ticker symbol or CUSIP number, number of shares and/or principal amount of each Security beneficially owned); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The name of any broker-dealer or financial institution with which the Employee maintains a Personal Account in which any Securities are held for the Employee.

In the event that AB already maintains a record of the required information via duplicate copies of broker trade confirmations and account statements received from the Employee's broker-dealer, an Employee may satisfy this requirement by (i) confirming in writing (which may include e-mail) the accuracy of the record on at least an annual basis and (ii) recording the date of the confirmation.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**f.Report and Certification of Adequacy to the Board of Directors of Fund Clients**

On a periodic basis, but not less than annually, the Chief Compliance Officer shall prepare a written report to the management and the board of directors of each registered investment fund (other than a unit investment trust) in which AB acts as investment adviser setting forth the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A certification on behalf of AB that AB has adopted procedures reasonably necessary to prevent Employees and Directors from violating the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A summary of existing procedures concerning personal investing and any changes in procedures made during the past year; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A description of any issues arising under the Code or procedures since the last report to the Board including, but not limited to, information about material violations of the Code or procedures and sanctions imposed in response to the material violations.

AB shall also submit any material changes to this Code to each Fund's Board at the next regular board meeting during the quarter following the change.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**g.Report Representations**

Any Initial or Annual Holdings Report or Quarterly Transaction Report may contain a statement that the report is not to be construed as an admission by the person making the report that they have any direct or indirect Beneficial Ownership in the Security to which the report relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**h.Maintenance of Reports**

The Chief Compliance Officer shall maintain the information required by this Section and such other records, if any, and for such time periods required by Rule 17j-1 under the Investment Company Act and Rules 204-2 and 204A-1 under the Advisers Act. All reports furnished pursuant to this Section will be kept confidential, subject to the rights of inspection and review by the General Counsel, the Chief Compliance Officer and his or her designees, the Code of Ethics Oversight Committee (or subcommittee thereof), the Securities and Exchange Commission and by other third parties pursuant to applicable laws and regulations.

**9. Reporting Requirements for Directors who are not Employees**

All Affiliated Outside Directors (i.e., not Employees of AB, but employees of an AB affiliate) and Outside Directors (i.e., neither Employees of AB, nor of an AB affiliate) are subject to the specific reporting requirements of this Section 8 as described below. Directors who are Employees of AB, however, are subject to the full range of personal trading requirements, restrictions and reporting obligations outlined in Sections 1 through 7 of this Appendix A of the Code, as applicable. In addition, all Directors are expected to adhere to the fiduciary duties and high ethical standards described in the Code.

___________________

<sup>9</sup> Employees who join the Firm after the annual process has commenced will submit their initial holdings report (see Section 7(b)) and complete their first Annual Holdings Report during the next annual cycle and thereafter.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.Outside Directors / Affiliated Outside Directors**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.**In general, pursuant to various regulatory rule exceptions and interpretations, no reporting is required of Outside Directors and Affiliated Outside Directors. However, if an Outside or Affiliated Outside Director knew, or in the ordinary course of fulfilling his or her official duties as a Director should have known,** that during the 15-day period immediately before or after the Outside or Affiliated Outside Director's transaction in a Security for a Personal Account, a Client bought or sold the Security, or the Client or AB considered buying or selling the Security, the following reporting would be required.

<u>Transaction</u> <u>Report</u>

In the event that a transaction report is required pursuant to the scenario in the preceding paragraph, other than for accounts over which the director had no influence or control, each outside director must within thirty (30) days following the end of each calendar quarter, provide to the Chief Compliance Officer, a signed and dated report disclosing all Securities transactions in any Personal Account. For each such Security, the report must contain the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The date of the transaction, the title, and as applicable the exchange ticker symbol or CUSIP number, interest rate and maturity date, number of shares, and principal amount of each Security involved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The nature of the transaction (i.e., purchase or sale or any other type of acquisition or disposition);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The price of the Security at which the transaction was effected; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The name of the broker or other financial institution through which the transaction was effected.

## Ex-99.(P)(2)

**Code of Ethics and Conduct**

**Barrow, Hanley, Mewhinney & Strauss, LLC**

**and**

**BH Credit Management LLC**

**CODE OF ETHICS AND CONDUCT**

---

| | |
|:---|:---|
| **Table of Contents** | **Table of Contents** |
| **Introduction** | **<u>[1](#i58ea26cb01b74cc1bbc32926764a7630_41)</u>** |
| **Definitions** | **<u>[2](#i58ea26cb01b74cc1bbc32926764a7630_194)</u>** |
| &nbsp;&nbsp;&nbsp;&nbsp;1. Policy for Possession of Material Non-Public Information | <u>[6](#i58ea26cb01b74cc1bbc32926764a7630_206)</u> |
| &nbsp;&nbsp;&nbsp;&nbsp;2. Duty of Confidentiality | <u>[9](#i58ea26cb01b74cc1bbc32926764a7630_218)</u> |
| &nbsp;&nbsp;&nbsp;3. Procedures for Access Persons | <u>[10](#i58ea26cb01b74cc1bbc32926764a7630_269)</u> |
| &nbsp;&nbsp;&nbsp;4. Exempted Transactions | <u>[14](#i58ea26cb01b74cc1bbc32926764a7630_281)</u> |
| &nbsp;&nbsp;&nbsp;5. Compliance Procedures | <u>[14](#i58ea26cb01b74cc1bbc32926764a7630_331)</u> |
| &nbsp;&nbsp;&nbsp;6. CCO's Authority and Duties | <u>[19](#i58ea26cb01b74cc1bbc32926764a7630_293)</u> |
| &nbsp;&nbsp;&nbsp;7. Reporting of Violations | <u>[19](#i58ea26cb01b74cc1bbc32926764a7630_347)</u> |
| &nbsp;&nbsp;&nbsp;8. Reporting to the Board of Managers | <u>[19](#i58ea26cb01b74cc1bbc32926764a7630_360)</u> |
| &nbsp;&nbsp;&nbsp;9. Sanctions | <u>[20](#i58ea26cb01b74cc1bbc32926764a7630_372)</u> |
| &nbsp;&nbsp;&nbsp;10. Retention of Records | <u>[20](#i58ea26cb01b74cc1bbc32926764a7630_317)</u> |
| **Exhibits** | **<u>[21](#i58ea26cb01b74cc1bbc32926764a7630_385)</u>** |
| &nbsp;&nbsp;&nbsp;Initial Report of Access Persons | <u>[A-1](#i58ea26cb01b74cc1bbc32926764a7630_92)</u> |
| &nbsp;&nbsp;&nbsp;Annual Report of Access Persons | <u>[B-1](#i58ea26cb01b74cc1bbc32926764a7630_457)</u> |
| &nbsp;&nbsp;&nbsp;Quarterly Transactions Report of Access Persons | <u>[C-1](#i58ea26cb01b74cc1bbc32926764a7630_474)</u> |
| &nbsp;&nbsp;&nbsp;Personal Reportable Securities Transaction Pre-Clearance Form of Access Persons | <u>[D](#i58ea26cb01b74cc1bbc32926764a7630_491)</u> |
| &nbsp;&nbsp;&nbsp;Personal Political Contribution Pre-Clearance Form of Access Persons | <u>[E](#i58ea26cb01b74cc1bbc32926764a7630_508)</u> |
| &nbsp;&nbsp;&nbsp;List of Reportable Funds of Access Persons | <u>[F-1](#i58ea26cb01b74cc1bbc32926764a7630_525)</u> |

---

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**Introduction**<br>

Barrow Hanley Global Investors ("Barrow Hanley" or "the Firm") has adopted this Code of Ethics and Conduct (the "Code") in its current form in compliance with the requirements of Section 204A-1 of the Investment Advisers Act of 1940 (the "Advisers Act") and Section 17(j) of the Investment Company Act of 1940. This Code was last amended on February 14, 2025. The Code requires the Firm's Access Persons to comply with the federal securities laws and the Firm's policies and procedures, sets standards of business conduct required of the Firm's supervised persons, and addresses conflicts that arise from personal transactions and other activity by Access Persons. The policies and procedures outlined in the Code are intended to promote compliance with fiduciary standards by the Firm and its Access Persons. As a fiduciary, the Firm and its employees: (i) have the responsibility to render professional, continuous, and unbiased investment advice, (ii) owe its clients a duty of honesty, good faith, and fair dealing, (iii) must act at all times in the best interests of clients, and (iv) must avoid or disclose conflicts of interest.

A.Barrow Hanley's Code of Ethics and Conduct is designed to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Set standards for ethical conduct based on the fundamental principles of openness, integrity, honesty, and trust.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Protect the Firm's clients by deterring misconduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Educate employees regarding the Firm's expectations and the laws governing their conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Remind employees that they are in a position of trust and must act with complete propriety at all times.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.Protect the reputation of the Firm.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.Guard against violations of the securities laws.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.Establish procedures for employees to monitor the Firm's business and uphold its ethical principles, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.Discourage excessive risk-taking in employees' personal investments and/or in a client's account.

B.This Code is based upon the principle that the directors, officers, and employees of the Firm owe a fiduciary duty to the Firm's clients to conduct their affairs, including their personal transactions, in such a manner as to avoid:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Serving their own personal interests ahead of a client's interest.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Taking inappropriate advantage of their position with the Firm.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Actual or potential conflicts of interest, and/or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Abuse of their position of trust and responsibility.

C.As a fiduciary, employees should avoid conflicts of interest where possible. This Code requires disclosure and reporting of any unavoidable conflicts of interest.

D.This Code is designed to implement controls that discourage employees from taking excessive risk in a client's account and/or in the employee's personal investments and Reportable Account(s).

E.Barrow Hanley's fiduciary duty includes the duty of the Chief Compliance Officer ("CCO") of the Firm to maintain, monitor, and enforce the Code, periodically review and amend the Code, and to report material violations of the Code to the Firm's Board of Managers and clients.

F.This Code contains requirements necessary to prevent Access Persons from violating the Firm's standards and procedures designed to prevent violations of the Code. Each Access Person at the commencement of their employment must certify to their understanding of the Code's requirements and acknowledge to abide by all of the Code's provisions and prohibitions. Each Access Person must re-certify their understanding and acknowledgement of the Code annually, and any time the Code is amended.

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**Definitions**<br>

The following terms are used throughout this Code and are defined here to describe and explain their use and purpose for the Code's provisions and prohibitions.

A.**"Access Person"** means supervised persons of the Firm including any director, officer, general partner, Advisory Person, Investment Personnel, Portfolio Manager, or employee of the Firm. The CCO may, in her discretion, designate other individuals (e.g., affiliates, consultants, interns and temporary employees) that have access to client information as Access Persons of the Firm. The CCO may exempt certain Access Person(s) and/or Members of its Board of Managers from certain provisions and prohibitions of this Code who are subject to another code of ethics that has been approved by the CCO.

B.**"Advisory Person"** means any person in a Control relationship to the Firm who obtains information concerning recommendations made to the Firm with regard to the purchase or sale of a security by the Firm.

C.**"Affiliate"** or **"Affiliated Company"** means a company which is an affiliate of the Firm through a corporate relationship, including the Firm's parent company, Perpetual Limited ("Perpetual Group") (ASX ticker: PPT), a global financial services firm operating a multi-boutique asset management business, as well as wealth management and trustee services businesses.

D.**"Beneficial Ownership"** means any person who, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise, has or shares a direct or indirect beneficial interest in an account or security. Such relationships may include but are not limited to an employee's spouse, children, parents, guardians, or person for whom the employee has control or owes a duty of care.

E.**"Black-out Period"** means the time period designated by the CCO whereby an Access Person and/or Family Members must not trade a Reportable Security, see Trading Restriction for Access Persons, Section 3.D.

F.**"Business Entertainment"** means an Access Person's participation, whether as a guest or host, in lunches, dinners, cocktail parties, sporting activities or similar business gatherings conducted for business purposes. Business Entertainment is not a Gift.

G.**"Control"** means the power to exercise a controlling influence over the management or policies of a company or person unless such power is solely the result of an official position with such company. Any Person or entity who owns beneficially, either directly or through one or more controlled companies or relationships, more than 25% of the voting securities of a company shall generally be presumed to control such company. Any Person who does not own more than 25% of the voting securities of any company shall not be presumed to control such company.

H.**"Covered Associate"** means any general partner, managing member, executive officer, or other individual with a similar status or function, any employee who solicits a government entity for the investment adviser and any person who supervises, directly or indirectly, such employee.

I.**"Direct Beneficial Interest"** means a Person has a direct interest as an owner of something or receives a direct benefit from an investment in a Reportable Security. A direct benefit may derive from an indirect interest in, among other things, something owned by a Person's spouse, domestic partner, or Family Trust.

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J.**"Exchange Traded Fund" or ("ETF")** means an investment fund that holds a collection of assets, such as stocks, bonds, or commodities, and trades on stock exchanges.

K.**"Family Member"** means any person sharing the same household with an Access Person (including spouses, domestic partners, children (including those who may be temporarily living away for college/boarding school), grandchildren, siblings, parents, grandparents, relatives-in-law, step relatives, adoptive relatives, and legal guardians), or any other person for which an Access Person has "Beneficial Ownership" of their accounts or securities.

L.**"Firm"** means Barrow Hanley Global Investors, BH Credit Management, LLC, and their related general partner entities.

M.**"Gift"** means cash or any item of value.&nbsp;&nbsp;&nbsp;&nbsp;

N.**"Government Entity"** means any state or local government agency, authority, or instrumentality of a state or local government, any pool of assets sponsored by a state or local government (i.e., defined benefit pension plan, separate account or general fund), and any participant-directed government plan.

O.**"Indirect Beneficial Interest"** means a Person, who is not an owner, receives an indirect benefit from an investment in a Reportable Security. An Indirect Beneficial Interest may be derived from any number of sources, as noted above.

P.**"Investment Personnel"** means: any Portfolio Manager of the Firm, Research Analysts, Traders, Client Portfolio Managers, and other personnel who provide information and advice to the Portfolio Manager, or who help execute the Portfolio Manager's investment selection. &nbsp;&nbsp;&nbsp;&nbsp;

Q.**"Managed Fund"** means any Reportable Fund for which the Firm serves as an Investment Adviser or Sub-Adviser.

R.**"Person"** means natural person or company.

S.**"Political Action Committee" ("PAC")** means an organization whose purpose is to solicit and make Political Contributions.

T.**"Political Contribution"** means any Gift, subscription, loan, advance, or deposit of money (such as gift certificates or merchandise), or anything of value given to a candidate or PAC for:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The purpose of influencing any election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The payment of debt incurred in connection with any such election.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Transition or inaugural expenses of the successful candidate for office, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Coordinating contributions through bundling or facilitating the contributions of other persons or PACs, including acting as a host to solicit contributions.

Examples of contributions include, (i) the cost of attending or hosting fundraising events; (ii) payments to bond ballot campaigns; (iii) expenses incurred in connection with fundraising; or (iv) expenses incurred from other volunteer activities (e.g., hosting a reception).

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U.**"Political Fundraising Activities"** include, but are not limited to, the following activities on behalf of a state or local candidate or official:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Coordinating contributions (generally, bundling, pooling, or otherwise facilitating the contributions made by other persons, including hosting events),

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Soliciting contributions (generally, communicating, directly or indirectly, for the purpose of obtaining or arranging a Political Contribution), or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Directing fundraising efforts.

V.**"Portfolio Directional Trade"** means a trade directed by a Portfolio Manager intended to increase or decrease a security's investment weighting in a client(s) account. This is a separate type of trade from a trade required to satisfy a client's cash-flow request.

W.**"Portfolio Manager"** means an employee of the Firm entrusted with the direct responsibility and authority to make investment selection decisions for a client's account.

X.**"Reportable Account"** means any account maintained with a bank, broker, or other entity in which an Access Person or Family Member owns Reportable Securities or has the ability to transact in Reportable Securities or has discretion over trading Reportable Securities on behalf of another.

Y.**"Reportable Fund"** means any Fund or Trust where the Firm or an Affiliate acts as the investment adviser, sub-adviser or principal underwriter for the fund. A list of Reportable Funds is attached as Exhibit F, and is available on StarCompliance, or from the Compliance Department.

Z.**"Reportable Security"** means a Security that is subject to the requirements of this Code, including any note, stock, treasury stock, corporate or municipal bond, foreign government bond, debenture, exchange-traded fund ("ETF"), evidence of indebtedness, bank loan, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, pre-organization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, any put, call, straddle, option, future, swap, convertible, or privilege on any security, group, or index of Reportable Securities on a national securities exchange, relating to foreign currency, or, in general, any interest or instrument commonly known as a security, or instrument for trading speculation, or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing, Reportable Fund, Managed Fund, limited offering or partnership, bank loan for the purpose of investing, private placement, or hedge fund investment. Reportable Security does not mean direct obligations of the Government of the United States, high quality short-term debt instruments, bankers' acceptances, bank certificates of deposit, commercial paper, repurchase agreements, crypto currencies and other blockchain technologies.

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AA.**"Solicit a Government Entity for Investment Advisory Services"** means a direct or indirect communication with a state or local Government Entity for the purpose of obtaining or retaining investment advisory services business including, but not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Leading, participating in, or attending a sales/solicitation meeting with a state or local Government Entity, such as a government pension plan or general fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Otherwise holding oneself out as part of the Barrow Hanley's representative or sales/solicitation effort with a state or local Government Entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Signing a submission to an RFP in connection with Barrow Hanley's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Making introductions between government officials and Barrow Hanley.

AB.**"State or Local Official(s)"** means any person, including any election committee for such person, who was, at the time of a Political Contribution, an official, incumbent, candidate, or successful candidate for elective office of a state or local government, including, but not limited to, any state or local agency, authority, or instrumentality, limited exceptions may apply depending on the nature of the office, as identified by the Firm's CCO.

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**1.&nbsp;&nbsp;&nbsp;&nbsp;Policy for Possession of Material Non-Public Information**<br>

The Firm's Policy for possession of material non-public information ("MNPI") applies to every Person subject to this Code, including Access Persons and their Family Members, and extends to each individual's activities within and outside of their duties at the Firm. Any questions regarding this policy and procedures should be referred to the Firm's CCO.

A.In compliance with Section 204A of the Advisers Act, the Firm forbids any officer, director, Access Person or Family Member, from acting on and/or trading, either personally, on behalf of clients, or others, including accounts managed by the Firm, on material non-public information, or communicating material non-public information to others in violation of the law, frequently referred to as "insider trading".

B.The term "material non-public information means information that is material to a company, a government policy, or other regulatory entity or policy that is not known to the public and is material to the value of such company, or related industry or entity, and if made public would affect the value of such company's shares, or impact the investment market(s), and investments of a Person, or client.

C.The term "insider trading" is not defined in the federal securities laws, but generally is used to refer to the use of material non-public information to trade in Securities (whether or not one is an "insider"), or to communicate material non-public information to others. The term "insider information" includes non-public facts about a publicly traded company that may be used to a Person's financial advantage when trading shares of the Company and includes information about the firm's securities recommendation(s), and client holdings and transactions. While the law concerning insider trading is not static, it is generally understood that the law prohibits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Trading by a Person while in possession of material non-public information MNPI, (i) whether the Person is an insider or not; (ii) whether the information was disclosed to the Person in violation of an insider's duty to keep it confidential; whether the information was misappropriated or received inadvertently; or whether the trade was profitable or not.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Communicating material non-public information to others in a breach of fiduciary duty, or for another's intent to trade on the information.

D.Information is material if or when there is a substantial likelihood that a reasonable investor would consider it important in making their investment decisions(s), or information that is reasonably certain to have a substantial effect on the price of a company's securities (shares or bonds) whether it is determined factual or a rumor. Information that a Person subject to this Code should consider material includes, but is not limited to: dividend changes, earnings estimates, changes in previously released earnings estimates, significant merger or acquisition proposals or agreements, major litigation, debt service and liquidation problems, extraordinary management developments, write-downs or write-offs of assets, additions to reserves for bad debts, new product/services announcements, criminal, civil, and government investigations and indictments. Material information does not have to relate to a company's business. For example, material information about the contents of any upcoming press release, media column, or blog that may affect the price of a security, and therefore, may be considered material. Disclosure of a mutual fund client's trades or holdings, or any client's holdings that are not publicly available, may be considered material information and must be kept confidential. All employees of Barrow Hanley are subject to this Policy and to the Duty of Confidentiality of this Code.

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E.Information is non-public until it has been effectively communicated to the marketplace. A Person must be able to point to some fact to show that the information is generally public. For example, information found in a report filed with the SEC, or appearing in the media, internet, or other publications of general circulation would be considered public. A Person should be particularly careful with information received from contacts at public companies or received through their position with Barrow Hanley. Under certain circumstances, the Firm may seek or agree to receive non-public information (some of which is likely to be material) with respect to borrowers under bank loans ("Bank Loan Issuer") on which the Firm has actively gone private. Generally, such nonpublic information regarding Bank Loan Issuers is made available through information services such as, but not limited to, Intralinks, Debt Domain or SyndTrak. In instances where such a Bank Loan Issuer is also an issuer of public securities, such public securities are placed on the Firm's Restricted List to the extent the Firm has accessed material non-public information that has not been otherwise disseminated to the market. As a general matter, the CCO shall be responsible for the determination to add or remove an issuer from the Restricted List and may consult with internal or external counsel as needed in making such determination.

F.Each Person must consider the following before trading for themselves or others in the Reportable Securities of a company about which that Person has potential inside information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Is the information material? Is this information that an investor would consider important in making their investment decisions? Is this information that would affect the market price of the Reportable Security if generally disclosed?

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Is the information non-public? To whom has this information been provided? Has the information been effectively communicated to the marketplace?

G.The role of the Firm's CCO is critical to the implementation and maintenance of the Firm's policy and procedures against insider trading. If, after consideration of the above, a Person believes that the information is material and non-public, or if a Person has questions as to whether the information is material and non-public, that Person should take the following steps:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Report the matter immediately to the Firm's CCO. After the CCO has reviewed the issue, a determination will be made as to trading or restricting the security, and the employee will be instructed to continue the prohibition against communication or will be allowed to trade and communicate the information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Do not purchase or sell the securities on behalf of him/herself or others. The Firm may determine to restrict trading in the security for Access Persons, for the clients' portfolios or both.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Do not communicate the information to anyone inside or outside the Firm, other than to the Firm's CCO as required under this Policy.

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H.The CCO may communicate potential insider information to outside counsel and compliance/legal personnel at Perpetual, for consultative purposes. In addition, care should be taken so that such information is secure. For example, files containing material non-public information should be sealed; access to computer files containing material non-public information should be restricted. The CCO will review and appropriately document each circumstance where the possibility of insider information has been reported. Further actions to restrict trading in the security, to release a restriction against trading, or to limit trading, are based on the facts and circumstances of the information.

I.The Firm's clients include (i) private funds sponsored by the Firm that invest in the equity and mezzanine tranches of collateralized loan obligations ("CLOs") and (ii) CLOs. Desktop procedures are maintained by the CLO portfolio managers and the Firm's Compliance Department, subject to oversight by the Firm's CLO Governance Committee with respect to MNPI considerations in the trading of CLO equity or debt tranches.

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**2.&nbsp;&nbsp;&nbsp;&nbsp;Duty of Confidentiality**<br>

Any Person subject to this Code must keep confidential at all times any non-public information they may obtain. This information includes but is not limited to:

A.Information about a client's account, including account holdings, recent or pending securities transactions, investment recommendations, and/or activities of the Portfolio Managers and Research Analysts for clients' accounts.

B.Information about the Firm's clients and prospective clients' investments and account transactions.

C.Information about the Firm's personnel, including private personally identifiable information (PII), pay, salary, bonus, equity interest, benefits, position level, performance rating, discipline history, non-business information obtained in the course of the employee's job, and other things; and

D.Information about the Firm's financial information, business activities, including new investment strategies, services, products, technologies, business initiatives, client gains/losses, and negotiated fee details.

The Firm's personnel have the highest fiduciary obligation to keep confidential information relating to Perpetual Group to any party that does not have a clear and compelling need to know such information, and to safeguard all confidential information about the Firm and its clients. Barrow Hanley's Privacy Policy for safeguarding clients' personal information, account information, and transactions is provided in the Firm's Compliance Policies and Procedures (the "Compliance Manual"). The information for data security and systems are provided in the Firm's Employee Handbook.

Nothing in this Code precludes any Access Person from contacting, filing a complaint with, providing information to, or cooperating with an investigation conducted by the U.S. Securities and Exchange Commission or any other governmental agency.

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**3.&nbsp;&nbsp;&nbsp;&nbsp;Procedures for Access Persons**<br>

In an effort to comply with federal securities regulations and the high standards Barrow Hanley has set to avoid potential conflicts of interest, the following procedures have been adopted:

**Who Must Comply with these Procedures?**

All employees of Barrow Hanley and their Family Members are subject to, and must comply with, the requirements of this Code. (In general, you must report all securities-related accounts for yourself, household members, and/or any person whose investments you may direct, see Section B., Personal Trading Procedures for Access Persons and Family Members, below.) In addition to employees, under certain circumstances, other individuals who work for or with Barrow Hanley may also be required to comply with this Code (e.g., affiliates, interns, temporary workers, and consultants). A member of Barrow Hanley's Compliance team will notify such individuals when, and if, they are required to comply.

A.**General Procedures for Access Persons.** As defined by this Code, all employees of the Firm are identified as Access Persons and are subject to the following restrictions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.**Restriction on Accepting and Giving Gifts of More than de Minimis Value.** Without pre-approval of the CCO, Access Persons are restricted from accepting or giving any Gift(s) of more than de minimis value under this Code from/to any Person or entity/organization when the Gift(s) is related to conducting the Firm's business. Gifts must be reported monthly, or at the time a Gift is accepted or given. Reports should be made in StarCompliance or the Gift and Entertainment Form available on the Firm's shared file network at: S:\BHMS_Shared\Compliance\Forms

Questions about this Gift policy should be directed to the CCO. A Gift does not include Business Entertainment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.The de minimis amount for accepting a Gift(s) is USD $100 (in total) per Person and is considered to be the annual receipt of Gift(s) from the same source valued at up to USD $100.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.The de minimis amount for Gift(s) giving by the Firm or its employees is USD $250 (in total) per Person, and is considered to be the annual giving of Gift(s) to the same Person valued at up to USD $250.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.ERISA and Taft Hartley regulations have specific limitations for Gifts and Entertainment and reporting requirements when Gifts are given. To ensure proper reporting the CCO should be notified when an employee intends to give a Gift to an ERISA or Taft Hartley client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.**Reporting Business Entertainment.** Access Persons, whether the employee is the provider or participant, must report Business Entertainment activity monthly, or at the time it occurs. Extravagant or excessive entertainment is prohibited. Questions about what may be considered extravagant or excessive should be directed to the CCO. Any exceptions to this policy must be approved by the CCO. Business Entertainment should be reported in StarCompliance or on the Gift and Entertainment Form available on the Firm's shared file network at: S:\BHMS_Shared\Compliance\Forms

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.**Prohibition on Service as a Director or Public Official.** Due to the obvious conflict of interest, Access Persons, including Investment Personnel, are prohibited from serving on the board of directors of any publicly traded company, or for-profit company, without prior authorization of the Firm's CCO. Any such authorization shall be based upon a determination that the board service would be consistent with and not detract from the interests of the Firm's clients. Authorization of board service shall be subject to a review of such service and implementation of procedures to identify and isolate such a Person from making decisions about investments or trading in that company's securities, or advising about investing the company's assets, and adequate disclosure of any conflicts of interest must be provided to the CCO and may be disclosed in the Firm's Form ADV, and/or other documentation.

B.**Personal Trading Procedures for Access Persons and Family Members.** The policies of this Code apply to all employees of the Firm identified as Access Persons and the procedures extend to accounts of which the Access Person is the beneficial owner, or accounts in which the individual has any financial interest, or ability to exercise control or influence over its investments or trading. The procedures also extend to any account belonging to immediate Family Members (including any relative by blood or marriage) living in the Access Person's household or dependent on the Access Person for financial support. Thus, a Person subject to this Code is required to abide by the following procedures:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.**Prohibition on Initial Public Offerings ("IPO").** Persons subject to this Code are prohibited from acquiring securities in an initial public offering or secondary offerings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.**Prohibition on Initial Coin Offerings.** Persons subject to this Code are prohibited from securities transactions involving an initial coin offering.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.**Restriction on Private Placements.** Persons subject to this Code are restricted from acquiring securities in a private placement without prior approval from the Firm's CCO. In the event that an Access Person receives approval to purchase securities in a private placement, the Access Person must disclose that investment if/when the company intends to offer shares to the public in an IPO and/or if the individual plays any part in the Firm's later consideration of an investment in the issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.**Prohibition on purchasing Perpetual Group securities.** Persons subject to this Code are prohibited from acquiring securities issued by the Firm's parent company, Perpetual Group Limited (ASX: PPT), or any publicly traded securities of other related or Affiliated Company(s) in their own account or in a client's account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.**Restriction on Options, Swaps, Futures, or Derivatives.** Persons subject to this Code are restricted from purchasing or selling any option, swap, future, or derivative on any Security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.**Prohibition on Naked Options.** Persons subject to this Code are prohibited from trading Options, Swaps, Futures or Derivatives on any Security or instrument that the Access Person does not have previously set-aside shares, Securities, or cash to fulfill the obligation of the transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.**Prohibition on Short selling.** Persons subject to this Code are prohibited from selling any Security that the Access Person does not own, or otherwise engaging in "short selling" activities.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.**Prohibition on Short-term Trading Profits.** Persons subject to this Code are prohibited from profiting in the purchase and sale, or sale and purchase, of the same (or related) Reportable Securities within 60 calendar days. Profits realized on such short-term trades are generally subject to disgorgement, as determined by the Firm's CCO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.**Prohibition on Short-term Trading of Managed Funds.** Persons subject to this Code are prohibited from short-term trading of any Managed Fund shares. For the purpose of this Code, short-term trading is defined as a purchase and redemption/sell of a Managed Fund's shares within 30 calendar days. This prohibition does not cover purchases and redemptions/sales: (i) into or out of money market funds or short-term bond funds; (ii) purchases effected on a regular periodic basis by automated means, such as 401(k) purchases, or Voluntary Deferral Plan "VDP" contributions ("automated means" are pre-selected investment allocations; 401(k) or VDP trades that are not automated are subject to at least a 30-day holding period).

C.**Political Contribution and Charitable Contribution Procedures for Access Persons and Family Members.** The Firm is prohibited from making political contributions. Employees of Barrow Hanley are prohibited from making Political Contributions in the name of the Firm. As defined by this Code, all employees of the Firm are identified as Access Persons and are subject to the following restrictions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.**Personal Political Contributions to Candidates.** All Access Persons and their Family Members are limited in the amount of any political contribution to any state or local office holder or candidate to the following: (i) if the Access Person or their Family Member is Eligible to Vote for such candidate, contributions are limited to the di minimis amount of USD $350; (ii) if the Access Person or their Family Member is not entitled to vote for such candidate, contributions are limited to the di minimis amount of USD $150. Certain exceptions to this policy based on the Pay-to-Play Rule may be permitted by the CCO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.**Pre-Clearance of Personal Political Contributions and Fundraising Activities.** All Access Persons and their Family Members must obtain approval in advance from the CCO before: (i) making any Political Contribution to any state, or local candidate, or official running for state or local office, or candidate for a federal office who is currently a State or Local Official, and (ii) participating in any Political Fundraising Activities. Political Contributions and Political Fundraising Activity will be approved on a case-by-case basis. Pre-clearance should be obtained prior to making a Political Contribution or participating in a Political Fundraising Activity by completing and submitting a Personal Political Contribution Pre-Clearance Form for fundraising activity in StarCompliance or Exhibit E. The CCO will review each request to determine whether the Political Contribution or Political Fundraising Activity is permitted under applicable law and is consistent with this policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.**Prohibition on Certain Political Contributions.** Access Persons may not make personal Political Contributions for the purpose of obtaining or retaining advisory contracts with government entities, clients, or for any other business-related purpose. Access Persons also may not consider any of the Firm's current or anticipated business relationships as a factor in soliciting or making Political Contributions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.**Prohibition on Certain Charitable Contributions.** Access Persons may not consider any of the Firm's current or anticipated business relationships as a factor in soliciting or making charitable contributions and may not make charitable contributions for the purpose of obtaining or retaining advisory contracts with government entities or clients. The Firm may make charitable contributions as part of its formal charitable efforts and not for the purpose of obtaining or retaining advisory contracts with government entities or clients and must be made in the name of Barrow Hanley and payable directly to the tax-exempt charitable organization.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.**Indirect Action by an Access Person.** Access Persons are prohibited from doing anything indirectly that, if done directly, would result in a violation of applicable law or this policy. For example, it is a violation of this policy for an Access Person to direct someone on their behalf to make a Political Contribution in excess of applicable limits.

D.**Trading Restriction for Access Persons and Family Members on the Same Day as a Portfolio Directional Trade.** Access Persons and Family Members are restricted from purchasing or selling any Reportable Security on the same day the Firm executes a Portfolio Directional Trade in that same security for a client(s) account. Reasonable exceptions may be granted by the CCO when the trade does not appear to affect or harm any client(s).

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**4.&nbsp;&nbsp;&nbsp;&nbsp;Exempted Transactions**<br>

Certain prohibitions and restrictions for Access Persons and Family Members in Section 3, B. and D. above, do not apply to:

A.Purchases or sales of a Reportable Security made on the same day that a cash flow trade is executed in that same security for a client account, as determined and authorized by the Firm's CCO or her representative.

B.Purchases which are part of an automatic dividend reinvestment plan, or an automatic investment plan, or automated means of 401(k) purchases, or VDP contributions.

C.Purchases effected upon the exercise of rights issued by an issuer pro-rata to all holders of a class of its Reportable Securities, to the extent such rights were acquired from such issuer; or sales of such rights so acquired, or sales occurring simultaneously with the exercise of such rights.

D.Purchases and sales in shares of unaffiliated mutual funds, or ETFs, or Options on ETFs. Holdings in unaffiliated mutual funds, ETFs, and Options on ETFs must be reported annually, and transactions must be reported quarterly; however, generally trades in unaffiliated mutual funds, ETFs, and Options on ETFs do not require pre-clearance and are exempt from the 60-day holding for realizing a profit. Exceptions to this exemption may apply when an ETF is purchased for a client's account or for single-stock ETFs (including leveraged single-stock ETFs), the purchase and sale of which are not exempted transactions and require pre-clearance.

E.In addition to the above exemptions, the CCO may make exceptions to the restrictions imposed upon persons subject to the Code on a case-by-case basis, as deemed appropriate by the CCO, and which appear upon inquiry and investigation to present no reasonable likelihood of harm to any client.

**5.&nbsp;&nbsp;&nbsp;&nbsp;Compliance Procedures**<br>

All access persons are subject to the following procedures:

A.**StarCompliance Application.** Access Persons should use the StarCompliance Application for pre-clearance and reporting requirements under this Code. Certain transactions may require written pre-clearance and reporting on Reports identified as Code Exhibits A, B, C, D, or E, and these forms are available on the Firm's shared drive at: S:\BHMS_Shared\Compliance\Policies.

B.**Records of Reportable Securities Transactions.** Access Persons must notify the Firm's CCO if they or a Family Member have opened a Reportable Account during the quarter. Access Persons must direct their brokers to report into StarCompliance via a data feed or provide the Firm's CCO with duplicate brokerage confirmations of their Reportable Securities transactions and duplicate statements of their Reportable Account(s).

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C.**Pre-Clearance of Reportable Securities Transactions.** Access Persons and Family Members must receive prior approval from a designated member of compliance, before purchasing or selling Reportable Securities. Exclusions to this are:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Managed Funds in the Firm's 401K Plan or VDP Plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Exchange Traded Funds (ETFs) (excluding single-stock ETFs)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Purchases and sales over which a Person subject to the Code has no direct or indirect influence or control, such as automatic investments in 401K or VDP accounts, Family Trust Funds, or other accounts

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Purchases or sales pursuant to an automatic action under an automated investment plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.Purchases effected upon exercise of rights issued by an issuer pro rata to all holders of a class of its securities, to the extent such rights were acquired from such issuers, and sales of such rights so acquired or sales occurring simultaneously with the exercise of such rights, acquisition of securities through stock dividends, dividend reinvestments, stock splits, reverse stock splits, mergers, consolidations, spin-offs, and other similar corporate reorganizations, or distributions generally applicable to all holders of the same class of securities;

D.**Open-End Investment Company Shares Other Than Managed Funds.** This Code provides a limited exception on Reportable Securities from pre-clearance and short-term trading profit requirements; securities under this exception include ETFs. (Reportable Funds must be held 30 days).

E.**Pre-Clearance for Reportable Securities is Valid for That Trading Day.** Personal Reportable Securities transactions should be pre-cleared using the StarCompliance or Exhibit D, Personal Reportable Securities Transaction(s) Pre-Clearance Form. The CCO or another authorized member of the compliance team may approve transactions which appear upon inquiry and investigation to present no reasonable likelihood of harm to any client. Exceptions to this requirement may include the CCO's approval of a pre-clearance request(s) for a calendar week for trades in Reportable Securities that are not held in a client's account, do not fit the Firm's investment strategies, and are thinly traded such that a trade order will not likely be filled on the day of the pre-clearance.

F.**Pre-Clearance of Any Transaction in a Managed Fund.** All Access Persons and Family Members must receive prior written approval from a designated member of compliance before purchasing or selling any Managed Fund. Pre-clearance for Managed Funds is valid for that trading day. This pre-clearance requirement does not cover purchases and redemptions/sales: (i) into or out of money market funds or short-term bond funds; (ii) effected on a regular periodic basis by automated means, such as 401(k) purchases and VDP transactions, or (iii) 401(k) investment reallocation.

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G.**Disclosure of Personal Holdings, and Certification of Compliance with the Code of Ethics and Conduct.** All Access Persons must disclose to the Firm's CCO all personal Reportable Securities holdings at commencement of employment, and annually thereafter as of December 31. Every Access Person must certify on Exhibit A, Initial Report of Access Persons, or Exhibit B, Annual Report of Access Persons, or through StarCompliance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The employee and their family member(s) recognize that they are subject to all provisions and prohibitions of this Code, and has read, understands, and will follow the Code's requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The employee and family member(s) have complied with the requirements of this Code, and have reported all personal Reportable Securities, Reportable Accounts, holdings in Managed Funds, and Personal Transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Initial holdings report must be made within ten days of hire.

H.**Reporting Requirements.** The CCO of the Firm will notify each Access Person that each individual is subject to these reporting requirements, will deliver a copy of this Code to each Access Person prior to, or upon, their date of employment, and at any time the Code is amended, and will train each Access Person on appropriate compliance matters. A member of the compliance team will train employees to use StarCompliance for personal reporting.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Reportable Securities managed by a third-party in a discretionary advisory account are subject to the annual reporting requirements contained in this Section and are excluded from certain other provisions and prohibitions of the Code. (IPOs and private placements are not excluded.)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Reports, personal trades and holdings, and other information submitted pursuant to this Code shall be reviewed periodically by the CCO, kept confidential, and when necessary, provided to the Chief Executive Officer ("CEO") of the Firm, Perpetual Group, the Firm's legal counsel, regulatory authorities, or auditors upon appropriate request. The designated backup to the CCO is responsible for reviewing and monitoring the personal securities transactions of the CCO, and for assuming the responsibilities of the CCO in her absence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Every Access Person must report to the CCO all Reportable Accounts currently open at the time of the individual's initial employment, and any new Reportable Account (this includes any account belonging to Family Members) opened, including the name of the bank or brokerage, the account number, and date the account was opened, and must disclose the new Reportable Account with the individual's quarterly transaction report. Information reported in StarCompliance or on Exhibit A must be current within at least 45 days of the date of their employment.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Every Access Person must report to the CCO of the Firm any/all Reportable Account(s) and any/all personal Securities holdings (this includes any account(s) or holdings belonging to Family Members) at the time of an individual's initial employment with the Firm. A report must be made through StarCompliance or the designated form, Exhibit A, Initial Report of Access Persons, with account statements attached containing the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Name and principal amount of the Reportable Security, ticker or CUSIP, share quantity, bond quantity, interest rate, and/or maturity date.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Name and account number of the Reportable Account where the Reportable Security is held.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Name of any broker, dealer, or bank with which the Access Person maintains an account in which any Reportable Securities are held for the Access Person's direct or indirect benefit (account statements may be attached); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.The date the Access Person submits the report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.Every Access Person must report to the CCO of the Firm the information described in Paragraph 4 of this Section with respect to transactions in any Reportable Security in which such Access Person has, or by reason of such transaction acquires, any direct or indirect Beneficial Ownership in the Reportable Security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.Quarterly transaction reports must be made no later than thirty days after the end of the calendar quarter in which the transaction was executed. Every Access Person is required to submit a report for all periods, including those periods in which no Reportable Securities transactions were executed. A report should be made through StarCompliance, or the designated form, Exhibit C, Quarterly Report of Access Persons, account statements may be attached to the form for reporting purposes, containing the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.The Reportable Security name, ticker and/or CUSIP, interest rate, maturity date, share quantity, bond quantity, and the principal amount of each Reportable Security transacted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.The nature of the transaction (i.e., purchase or sale).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.The price at which the transaction was executed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.The name of the broker, dealer or bank with or through whom the transaction was executed. Trade confirmations of all personal transactions and copies of periodic Reportable Account statements may be attached to Exhibit C to fulfill the reporting requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.The name of the broker, dealer, or bank with whom the Access Person established a new Reportable Account during the period and the date the account was established.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.The date of the transaction(s) and, if different, the date that the report is submitted by the Access Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.Every Access Person must report to the CCO all Political Contributions (this includes contributions made by Family Members) described in Section 3.C. of this Code, Restrictions for Access Persons. made during the quarter. A report should be made using StarCompliance or Exhibit E, Political Contribution Pre-Clearance Form.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.Every Access Person should report Gifts accepted or given, and/or Business Entertainment as a provider or participant, using StarCompliance or the Gift & Entertainment Report. Gifts and Entertainment must be reported monthly or upon each occurrence.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.A member of the compliance team or the CCO shall periodically review the reports provided by the Firm's Access Persons. Review will include personal transactions and brokerage activity in StarCompliance, personal brokerage statements and holdings, and Political Contributions, among other things.

I.**Conflict of Interest.** Every Access Person must notify the CCO of any personal conflict of interest relationship which may involve the Firm's clients, such as the existence of any economic relationship between their transactions and Reportable Securities held or to be acquired by any client's account. Such notification shall occur in the pre-clearance process or immediately upon becoming aware of the conflict.

J.The CCO must implement and enforce this Code, maintain copies of the Code, keep records of Code violations, and maintain records of Access Persons' reports as required by the Code.

K.A designated member of the firm serves as the backup to the CCO. The designated member reviews and signs-off on the CCO's personal reports required under the Code and Compliance Manual. Other compliance personnel may be designated to perform certain functions of the CCO. In the absence of the CCO, the designated backup to the CCO may perform all duties of the CCO as defined in the Code and must report to the CCO any disclosed conflicts or violations that may have occurred in her absence.

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**6.&nbsp;&nbsp;&nbsp;&nbsp;CCO's Authority and Duties**<br>

The Firm's CCO has a fiduciary duty to the Firm's clients and to Barrow Hanley and is responsible for enforcing and monitoring this Code. The CCO is authorized to grant reasonable exceptions to the provisions and prohibitions of this Code, as permitted by law, and when such exceptions do not conflict with a client's interests.

**7.&nbsp;&nbsp;&nbsp;&nbsp;Reporting of Violations**<br>

A.Any Access Person of the Firm who becomes aware of a violation of (i) this Code of Ethics and Conduct, (ii) the Compliance Policies and Procedures, (iii) the Employee Handbook, or (iv) any other internal policies or procedures, must promptly report such violation to the Firm's CCO or the CEO. This reporting requirement includes self-reporting when an employee discovers the individual has violated an internal policy.

B.The Firm's CCO must report to the Firm's Board of Managers all material violations of this Code, the Compliance Policies and Procedures, the Employee Handbook, or other internal controls. Material violations may be reported to the CCO of any Managed Fund client, as required.

C.The CCO and CEO will consider reports made to the Board and determine what sanctions, if any, should be imposed.

**8.&nbsp;&nbsp;&nbsp;&nbsp;Reporting to the Board of Managers**<br>

Upon request, the Firm's CCO will prepare an annual report relating to this Code to the Boards of Managed Funds. Such annual report will:

A.Summarize existing procedures concerning personal investing and any changes in the procedures made during the past year.

B.Identify any violations requiring significant remedial action during the past year; and

C.Identify any recommended changes in the existing restrictions or procedures based upon the Firm's experience under the Code, evolving industry practices, or developments in applicable laws or regulations.

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**9.&nbsp;&nbsp;&nbsp;&nbsp;Sanctions**<br>

This Code provides disciplinary measures for violations, as follows:

A.Upon discovering a violation of this Code by an Access Person or Family Member, the CCO may impose sanctions as deemed appropriate, including, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Disgorgement: The Firm generally requires that profits realized on transactions made in violation of the Code's procedures be disgorged. A charity shall be selected by the Firm to receive any disgorged or relinquished amounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Extended Holding Period: Any security purchased during the black-out period may be prohibited from being sold for six months.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Unwinding the transaction: Purchases or sales made during a blackout period may be required to be reversed and any profit may be disgorged.

B.The Pay-to-Play Rule imposes a two-year ban on an adviser's ability to receive compensation for advisory services if the Firm or certain of its Covered Associates makes certain Political Contributions to a State or Local Official over the de minimus amount.

C.For sanctions imposed, a memo of correction, suspension, or termination of employment will be retained according to the Code's records retention requirement. This includes violations committed by a Family Member.

**10.&nbsp;&nbsp;&nbsp;&nbsp;Retention of Records**<br>

This Code and the Firm's Compliance Policies and Procedures require all books and records related to this Code to be retained, including:

A.**Code of Ethics and Conduct Records.** This Code (and prior versions in effect during the past seven years), a copy of the reports made by each Access Person, each memorandum made by the Firm's CCO, and a record of any violation and actions taken as a result of such violation, must be maintained by the Firm for a minimum of seven years.

B.**Political Contribution Records.** A list of: (i) all Access Persons; (ii) all government entities to which the Firm provides or has provided investment advisory services or which are or were investors in any covered investment pool to which the Firm has provided services in the past five years; (iii) all direct or indirect Political Contributions made by any Access Person to an official of a Government Entity, or direct or indirect payments to a political party of a state or political subdivision thereof, or to a PAC; and (iv) the name and business address of each regulated Person to whom the Firm provides or agrees to provide, directly or indirectly, payment to solicit a Government Entity for investment advisory services on its behalf. Records relating to Political Contributions must be listed in chronological order and must indicate: (i) the name and title of each contributor; (ii) the name and title of each recipient; (iii) the amount and date of each Political Contribution; and (iv) whether any such Political Contribution was the subject of the exception for returned Political Contributions.

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**Exhibits**

***Exhibit A* – Initial Report of Access Persons**

***Exhibit B* – Annual Report of Access Persons**

***Exhibit C* – Quarterly Transactions Report of Access Persons**

***Exhibit D* – Personal Reportable Securities Transaction Pre-Clearance Form of Access Persons**

***Exhibit E* – Personal Political Contribution Pre-Clearance Form of Access Persons**

***Exhibit F* – List of Reportable Funds of Access Persons**

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**BARROW HANLEY GLOBAL INVESTORS**

**CODE OF ETHICS AND CONDUCT**

**Initial Report of Access Persons**

To the Chief Compliance Officer of Barrow Hanley Global Investors ("Barrow Hanley"), I certify:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.I acknowledge receipt of the Code of Ethics and Conduct for Barrow Hanley.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.I recognize that I am subject to Barrow Hanley's Code as an Access Person and have read, understood, and will follow the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Except as noted below, I have no knowledge of the existence of any personal conflict of interest relationship which may involve the Firm, such as any economic relationship between my transactions and Securities held or to be acquired by Barrow Hanley or any of its portfolios.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.As of the date below I and/or a Family Member had a direct or indirect ownership in the following Reportable Securities (brokerage or financial statements may be attached):

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| | | | |
|:---|:---|:---|:---|
| **SECURITY NAME/TYPE/TICKER/CUSIP**<br>**INTEREST RATE & MATURITY DATE** | **NUMBER OF SHARES** | **PRINCIPAL VALUE** | **TYPE OF INTEREST (DIRECT OR INDIRECT)** |

---

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**BARROW HANLEY GLOBAL INVESTORS**

**CODE OF ETHICS AND CONDUCT**

**Initial Report of Access Person**

*(Continued)*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.I and/or a Family Member have the following Reportable Accounts open and have directed the bank or brokerage to send duplicate confirmations and statements to Barrow Hanley:

---

| | |
|:---|:---|
| **NAME OF FIRM** | **TYPE OF INTEREST**<br> **(DIRECT OR INDIRECT)** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.I and/or a Family Member have made the following Political Contributions in the previous 2 years:

---

| | | |
|:---|:---|:---|
| **NAME OF CANDIDATE** | **DATE OF CONTRIBUTION** | **TYPE OF POLITICAL ACTIVITY/**<br>**CONTRIBUTION** |

---

---

| | | |
|:---|:---|:---|
| Date: | Signature: |  |
|  | Print Name: |  |
|  | Title: |  |
|  | Employer: | **BARROW HANLEY GLOBAL INVESTORS** |
| Date: | Signature: |  |
|  |  | Firm's CCO |

---

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**BARROW HANLEY GLOBAL INVESTORS** 

**CODE OF ETHICS AND CONDUCT**

**Annual Report of Access Persons**

To the Chief Compliance Officer of Barrow Hanley Global Investors, ("Barrow Hanley"), I certify:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.That I am subject to the Code as an Access Person, I have read, understood, and agree to follow the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.During the year ended December 31, 20___, I have complied with the reporting requirements of the Code regarding personal transactions that I, and/or a Family Member, have executed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.I have not disclosed confidential information of the Firm to any Persons outside, or inside, Barrow Hanley or PPT, except where it was required for the execution of the Firm's business.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Except as noted below, I have no knowledge of the existence of any personal conflict of interest relationship which may involve the Firm, such as any economic relationship between my transactions and securities held or to be acquired by Barrow Hanley or any of its portfolios.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.During the year I have abided by the requirements of Barrow Hanley's Code of Ethics and Conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.As of December 31, 20___, I and/or a Family Member had a direct or indirect Beneficial Ownership in the following Reportable Securities:

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| | | | |
|:---|:---|:---|:---|
| **SECURITY NAME/TYPE/TICKER/CUSIP**<br>**INTEREST RATE & MATURITY DATE** | **NUMBER OF SHARES** | **PRINCIPAL VALUE** | **TYPE OF INTEREST (DIRECT OR INDIRECT)** |

---

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**BARROW HANLEY GLOBAL INVESTORS**

**CODE OF ETHICS AND CONDUCT**

**Annual Report of Access Persons**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(Continued)*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.I and/or a Family Member have the following Reportable Accounts open, and I have directed the bank or brokerage firm to send duplicate confirmations and statements to Barrow Hanley:

---

| | |
|:---|:---|
| **NAME OF FIRM** | **TYPE OF INTEREST** <br>**(DIRECT OR INDIRECT)** |

---

---

| | | |
|:---|:---|:---|
| Date: | Signature: |  |
|  | Print Name: |  |
|  | Title: |  |
|  | Employer: | **BARROW HANLEY GLOBAL INVESTORS** |
| Date: | Signature: |  |
|  |  | Firm's CCO |

---

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**BARROW HANLEY GLOBAL INVESTORS**

**CODE OF ETHICS AND CONDUCT**

**Quarterly Transactions Report of Access Persons**

**For the Calendar Quarter Ended: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

To the Chief Compliance Officer of Barrow Hanley Global Investors, ("Barrow Hanley"), I certify:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.During the quarter identified above, the following transactions were made in Reportable Securities and are required to be reported under the Barrow Hanley *Code of Ethics and Conduct (the "Code")*:

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **SECURITY NAME/TYPE/TICKER/CUSIP**<br>**INTEREST RATE & MATURITY DATE** | **DATE OF TRANS-ACTION** | **NUMBER OF SHARES** | **DOLLAR AMOUNT OF TRANSACTION** | **NATURE OF TRANSACTION**<br>(PURCHASE, SALE, OTHER) | **PRICE** | **BROKER/**<br>**DEALER OR BANK NAME** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.During the quarter identified above, the following Reportable Accounts were opened with direct or indirect beneficial ownership and are required to be reported under the Code.

---

| | | |
|:---|:---|:---|
| **NAME OF FIRM** | **TYPE OF INTEREST** <br>**(DIRECT OR INDIRECT)** | **DATE ACCOUNT OPENED** |

---

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**BARROW HANLEY GLOBAL INVESTORS**

**CODE OF ETHICS AND CONDUCT**

**Quarterly Transactions Report of Access Persons**

**For the Calendar Quarter Ended: <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(Continued)*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.During the quarter identified above, the following Political Contributions were made and are required to be reported under the Code.

---

| | | |
|:---|:---|:---|
| **NAME OF CANDIDATE** | **DATE OF CONTRIBUTION** | **TYPE OF POLITICAL ACTIVITY/**<br>**CONTRIBUTION** |

---

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Except as noted below, I have no knowledge of the existence of any personal conflict of interest relationship which may involve the Firm, such as any economic relationship between my transactions and securities held or to be acquired by the Firm or any of its portfolios.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.During the quarter identified above, I have abided by the requirements of Barrow Hanley's Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.During the quarter identified above, all potential Conflicts of Interest were reported to Compliance.

---

| | | |
|:---|:---|:---|
| Date: | Signature: |  |
|  | Print Name: |  |
|  | Title: |  |
|  | Employer: | **BARROW HANLEY GLOBAL INVESTORS** |
| Date: | Signature: |  |
|  |  | Firm's CCO |

---

****

------

**BARROW HANLEY GLOBAL INVESTORS**

**CODE OF ETHICS AND CONDUCT**

**Personal Reportable Securities Transaction Pre-Clearance Form of Access Persons**

**(See Code of Ethics and Conduct, 5. Compliance Procedures, Section C.)**

To the Chief Compliance Officer of Barrow Hanley Global Investors, ("Barrow Hanley"), I certify:

Pre-clearance is requested for the following proposed transactions:

---

| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| **SECURITY NAME/TYPE/TICKER/CUSIP**<br>**INTEREST RATE & MATURITY DATE** | **NUMBER**<br>**OF**<br>**SHARES** | **DOLLAR AMOUNT**<br>**OF TRANSACTION** | **NATURE** <br>**OF**<br>**TRANSACTION**<br>(PURCHASE, SALE, OTHER) | **PRICE**<br>(OR PROPOSED PRICE) | **BROKER**<br>**/DEALER**<br>**OR BANK THROUGH**<br>**WHOM EFFECTED** | **AUTHORIZED**<br>**YES NO** |

---

---

| | | |
|:---|:---|:---|
| Date: | Signature: |  |
|  | Print Name: |  |
|  | Title: |  |
|  | Employer: | **BARROW HANLEY GLOBAL INVESTORS** |
| Date: | Signature: |  |
|  |  | Firm's CCO |

---

D

------

**BARROW HANLEY GLOBAL INVESTORS**

**CODE OF ETHICS AND CONDUCT**

**Personal Political Contribution Pre-Clearance Form of Access Persons**

**(See Code of Ethics and Conduct, 3. Procedures for Access Persons, Section C.2)**

To the Chief Compliance Officer of Barrow Hanley Global Investors, ("Barrow Hanley"), I certify:

Pre-clearance is requested for the following proposed Political Contribution(s):

---

| | | | | | |
|:---|:---|:---|:---|:---|:---|
| **NAME OF CANDIDATE** | **AMOUNT** | **STATE AND COUNTY OF ELECTION** | **WHAT OFFICE IS CANDIDATE SEEKING?** | **IS COVERED PERSON ELIGIBLE TO VOTE FOR CANDIDATE?** | **AUTHORIZED**<br>**YES NO** |

---

---

| | | |
|:---|:---|:---|
| Date: | Signature: |  |
|  | Print Name: |  |
|  | Title: |  |
|  | Employer: | **BARROW HANLEY GLOBAL INVESTORS** |
| Date: | Signature: |  |
|  |  | Firm's CCO |

---

E

------

**BARROW HANLEY GLOBAL INVESTORS**

**CODE OF ETHICS AND CONDUCT**

**List of Reportable Funds of Access Persons**

**(See Code of Ethics and Conduct, 5. Compliance Procedures, Section F.)**

**U.S. Registered Funds – 25**

American Beacon Balanced Fund

American Beacon Diversified Fund

American Beacon Large Cap Value Fund

American Beacon Small Cap Value Fund

Barrow Hanley Concentrated Emerging Markets

&nbsp;&nbsp;&nbsp;&nbsp;ESG Opportunities Fund

Barrow Hanley Credit Opportunities Fund

Barrow Hanley Emerging Markets Value Fund

Barrow Hanley Floating Rate Fund

Barrow Hanley International Value Fund

Barrow Hanley Total Return Bond Fund

Barrow Hanley US Value Opportunities Fund

Brinker - Destinations International Equity Fund

Edward D. Jones - Bridge Builder Large Value Fund

Equitable - 1290 VT Equity Income Portfolio

GuideStone Value Equity Fund

MassMutual Small Cap Value Equity Fund

Mercer Emerging Markets Equity Fund

MML Income & Growth Fund

Principal LargeCap Value III Fund

Principal Overseas Fund

Timothy Plan Defensive Strategies Fund

Timothy Plan Fixed Income Fund

Timothy Plan Growth & Income Fund

Timothy Plan High Yield Bond Fund

Touchstone Value Fund

**Non-Registered Funds – 3**

Cayman Islands

EQ Offshore Aggressive Multimanager Fund

EQ Offshore Conservative Multimanager Fund

EQ Offshore Moderate Multimanager Fund

------

**Non-U.S. Registered Funds – 18**

*Australia*

Barrow Hanley Concentrated Global Share Fund

(unhedged)

Barrow Hanley Concentrated Global Share Fund

(hedged)

Barrow Hanley Emerging Markets Fund

Barrow Hanley Global Equity Trust

Colonial First State Investments Ltd -

&nbsp;&nbsp;&nbsp;&nbsp;Commonwealth Global Shares Fund 5

&nbsp;&nbsp;&nbsp;&nbsp;Commonwealth Global Shares Fund 8

Hostplus Pooled Superannuation Trust

Mercer Emerging Market Shares Fund

Perpetual Global Share Fund

Perpetual Private RI International Shares Fund

Perpetual Select International Share Fund

*Canada*

Leith Wheeler Emerging Markets Equity Fund

Leith Wheeler International Equity Plus Fund

Leith Wheeler International Equity Plus Fund

*Ireland*

Barrow Hanley Global ESG Value Equity Fund

Barrow Hanley Concentrated Emerging Markets

&nbsp;&nbsp;&nbsp;&nbsp;ESG Fund

Barrow Hanley US ESG Value Opportunities

&nbsp;&nbsp;&nbsp;&nbsp;Fund

MGI Emerging Markets Equity Fund

Old Mutual Value Global Equity Fund

*United Kingdom*

F&C Investment Trust plc

*As of January 1, 2025*

------

**BARROW HANLEY GLOBAL INVESTORS**

**CODE OF ETHICS AND CONDUCT**

**List of Reportable Funds of Access Persons**

**(See Code of Ethics and Conduct, 5. Compliance Procedures, Section F.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(Continued)*

**Trillium Advised and Sub-Advised Registered Funds**

---

| | | | |
|:---|:---|:---|:---|
| **Fund Name** | **Share Class** | **Symbol** | **Role** |
| Green Century Balanced Fund | Retail | GCBLX | Sub-Advisor |
| Green Century Balanced Fund | Institutional | GCBUX | Sub-Advisor |
| JHF ESG Large Cap Core Fund | A | JHJAX | Sub-Advisor |
| JHF ESG Large Cap Core Fund | C | JHJCX | Sub-Advisor |
| JHF ESG Large Cap Core Fund | I | JHJIX | Sub-Advisor |
| JHF ESG Large Cap Core Fund | R6 | JHJRX | Sub-Advisor |
| Trillium ESG Global Equity Fund | Investor | PORTX | Sub-Advisor |
| Trillium ESG Global Equity Fund | Institutional | PORIX | Sub-Advisor |
| Trillium ESG Small/Mid Cap Fund | Institutional | TSMDX | Sub-Advisor |

---

**TSW Advised and Sub-Advised Registered Funds**

---

| | | | |
|:---|:---|:---|:---|
| **Fund Name** | **Share Class** | **Symbol** | **Role** |
| TSW High Yield Bond Fund | I | TSWHX | Sub-Adviser |
| TSW Large Cap Value Fund | I | TSWEX | Sub-Adviser |
| TSW Emerging Markets Fund | I | TSWMX | Sub-Adviser |
| MassMutual Mid Cap Value Fund | I | MLUZX | Sub-Adviser |
| Transamerica International Equity | I | TSWIX | Sub-Adviser |
| Transamerica International Equity | A | TRWAZ | Sub-Adviser |
| Transamerica International Equity | C | TRWCX | Sub-Adviser |
| Transamerica International Small Cap | I | TISVX | Sub-Adviser |
| Transamerica Mid Cap Value Opportunities | I | MVTIX | Sub-Adviser |
| Transamerica Mid Cap Value Opportunities | A | MCVAX | Sub-Adviser |

---

*As of January 1, 2025*

------

**BARROW HANLEY GLOBAL INVESTORS**

**CODE OF ETHICS AND CONDUCT**

**List of Reportable Funds of Access Persons**

**(See Code of Ethics and Conduct, 5. Compliance Procedures, Section F.)**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;*(Continued)*

**JOHCM (USA) Advised Registered Funds\***

---

| | | | |
|:---|:---|:---|:---|
| **Fund Name** | **Share Class** | **Symbol** | **Role** |
| JOHCM Emerging Markets Opportunities Fund | Institutional; Advisor; Investor | JOEMX;<br>JOEIX;<br>JOEAX | Advisor |
| JOHCM Emerging Markets Discovery Fund | Institutional; Advisor | JOMMX;<br>JOMEX | Advisor |
| JOHCM International Opportunities Fund | Institutional | JOPSX | Advisor |
| JOHCM International Select Fund | Institutional; Investor | JOHIX;<br>JOHAX | Advisor |
| JOHCM Global Select Fund | Institutional; Advisor | JOGIX;<br>JOGEX | Advisor |
| Regnan Global Equity Impact Solutions | Institutional | REGIX | Advisor |
| SEI Institutional International Trust – Emerging Markets Equity Fund | Class F; Class Y | SIEMX;<br>SEQFX | Sub-Advisor |

---

*As of January 1, 2025*

*\*Excludes funds on the Perpetual Americas Funds Trust that are advised by affiliated sub-advisers, which are included above.*

## Ex-99.(P)(9)

**CODE OF ETHICS**

**EMERALD ADVISERS, LLC.**

**EMERALD MUTUAL FUND ADVISERS TRUST** 

**EMERALD SEPARATE ACCOUNT MANAGEMENT** 

**EMSTONE ADVISERS, LLC**

**01/02/2025**

<u>PREAMBLE</u>

This Code of Ethics is being adopted in compliance with the requirements of Rule

17j-1 under the Investment Company Act of 1940 (the "Act") and Rule 204A-1 under the Investment Advisers Act of 1940 (the "Advisers Act") adopted by the United States Securities and Exchange Commission to effectuate the purposes and objectives of the rules.

Rule 17j-1 makes it unlawful for certain persons, in connection with purchase or sale by such person of a security held or to be acquired by any series funds advised or sub- advised by Emerald Mutual Fund Advisers Trust or any affiliated person of the investment adviser:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)To employ a device, scheme or artifice to defraud the funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)To make to the funds any untrue statement of a material fact or omit to state to the funds a material fact necessary in order to make the statements made, in light of the circumstances in which they are made, not misleading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)To engage in any act, practice or course of business which operates or would operate as a fraud or deceit upon the funds; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)To engage in a manipulative practice with respect to the funds.

Section 206 of the Advisers Act makes it unlawful for certain persons including Emerald Advisers, LLC. or Emerald Mutual Fund Advisers Trust (the "Advisers"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)To employ any device, scheme or artifice to defraud any client or prospective client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)To engage in any transaction, practice or course of business which operates as a fraud or deceit upon any client or prospective client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Acting as principal for his own account, knowingly to sell any security to or purchase any security from a client; or acting as broker for a person other than such client, knowingly to effect any sale or purchase of any security for the account of such client, without disclosing to such client in writing before the completion of such transaction, the capacity in which he is acting and obtaining the consent of the client to such transaction. The prohibitions of this paragraph (3) shall not apply to any transaction with a customer of a broker or dealer if such broker or dealer is not acting as an investment adviser in relation to such transaction; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)To engage in any act, practice, or course of business which is fraudulent, deceptive or manipulative.

Rule 17j-1 and/or Rule 204A-1 require an investment adviser to adopt a written Code of Ethics containing provisions reasonably necessary to prevent persons from engaging in acts in violation of the above standard and to use reasonable diligence, and institute procedures reasonably necessary to prevent violations of the Code.

Set forth below is the Code of Ethics adopted by the Advisers in compliance with the Rule. This Code is based upon the principle that the Adviser owes a fiduciary duty to, among others, the clients of the Advisers to conduct their affairs, including their personal securities transactions, in such manner to avoid (i) serving their own personal interests ahead of clients; (ii) taking inappropriate advantage of their position with the Advisers ; and (iii) any actual or potential conflicts of interest or any abuse of their position of trust and responsibility.

------

**1.<u>DEFINITIONS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)*"Access Person"* means any director, trustee, officer, general partner, Advisory Person or Investment Personnel of the Advisers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)*"Advisory Person"* means

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)any employee of the Advisers (or of any company in a control relationship to the Advisers) who, in connection with his regular functions or duties, makes, participates in, or obtains current information regarding the purchase or sale of a Covered Security by the Advisers, or whose functions relate to the making of any recommendations with respect to such purchases or sales; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)any natural person in a control relationship to the Adviser who obtains information concerning recommendations made to the Advisers with regard to the purchase or sale of a Covered Security by the Advisers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)A security is "*being considered for purchase or sale"* or is "*being purchased or sold"* when a recommendation to purchase or sell the security has been made and communicated to the trading desk, which includes when the Advisers have a pending "buy" or "sell" order with respect to a security, and, with respect to the person making the recommendation, when such person seriously considers making such a recommendation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)*"Beneficial ownership"* shall be as defined in, and interpreted in the same manner as it would be in determining whether a person is subject to the provisions of, Section 16 of the Securities Exchange Act of 1934 and the rules and regulations thereunder which, generally speaking, encompasses those situations where the beneficial owner has the right to enjoy some economic benefit from the ownership of the security regardless of who is the registered owner. This would include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)securities which a person holds for his or her own benefit either in bearer form, registered in his or her own name or otherwise regardless of whether the securities are owned individually or jointly;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)securities held in the name of a member of his or her immediate family (spouse or child) sharing the same household;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)securities held by a trustee, executor, administrator, custodian or broker;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)securities owned by a general partnership of which the person is a member or a limited partnership of which such person is a general partner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)securities held by a corporation which can be regarded as a personal holding company of a person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)securities recently purchased by a person and awaiting transfer into his or her name; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)securities with respect to which an investment adviser or other person is entitled to a performance related fee (other than an asset based fee), unless the performance related fee is based on a percentage of net capital gains and/or net capital appreciation over a period of one year or more and the equity securities do not account for more than 10% of the market value of the portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)*"Control"* shall have the same meaning as that set forth in Section 2(a)(9) of the Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)*"Chief Compliance Officer"* means James Meehan or his successor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)*"Covered Security"* means a security, except that it shall not include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)direct obligations of the Government of the United States;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)bankers' acceptances, bank certificates of deposit, commercial paper and high quality short-term debt instruments, including repurchase agreements; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)shares issued by registered, open-end investment companies.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)*"Initial Public Offering"* ("IPO") means an offering of securities registered under the Securities Act of 1933 ("Securities Act"), the issuer of which, immediately before the registration, was not subject to the reporting requirements of Sections 13 or 15(d) of the Securities Exchange Act of 1934.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)*"Investment Personnel"* means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Any Advisory Person who, in connection with his regular functions or duties, makes or participates in making recommendations regarding the purchase or sale of securities by the Advisers.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)Any natural person who controls the Advisers and who obtains current information concerning recommendations made by the Advisers regarding the purchase or sale of securities by the Adviser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j)*"Limited Offering"* means an offering that is exempt from registration under the Securities Act pursuant to Section 4(2) or Section 4(6) or pursuant to rule 504, rule 505 or rule 506 under the Securities Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(k)*"Purchase or Sale of a Covered Security"* includes the writing of an option to purchase or sell a Covered Security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(l)*"Security Held or to be Acquired"* by the Advisers means:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)any Covered Security which, within the most recent fifteen (15) days:

&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;(A)is or has been held by the Advisers; or

&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;(B)is being or has been considered by the Advisers for purchase; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)any option to purchase or sell, and any security convertible into or exchangeable for, a Covered Security described in paragraph (m)(i) of this section.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(m)*"security"* as defined in Section 2(a)(36) of the Act means any note, stock, treasury stock, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, preorganization certificate or subscription, transferable share, investment contract, voting-trust certificate, certificate of deposit for a security, fractional undivided interest in oil, gas, or other mineral rights, any put, call, straddle, option, or privilege on any security (including a certificate of deposit) or on any group or index of securities (including any interest therein or based on the value thereof), or any put, call, straddle, option, or privilege entered into in a national securities exchange relating to foreign currency, or, in general, any interest or instrument commonly known as a "security," or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any of the foregoing.

**2. PROHIBITED TRANSACTIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)No *Access Person* shall engage in any act, practice or course of conduct, which would violate the provisions of Rule 17j-1 set forth above in the Code's Preamble.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)No *Access Person* shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Purchase or sell, directly or indirectly, any security in which he has or by reason of such transaction acquires, any direct or indirect beneficial ownership and which to his or her <u>actual knowledge</u> at the time of such purchase or sale:

&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;(A)is being considered for purchase or sale by the Advisers, or

&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;(B)is being purchased or sold by the Advisers, or has been purchased or sold during the previous 7 calendar days;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)disclose to other persons the securities activities engaged in or contemplated for the Advisers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)Purchase shares of mutual funds where the Advisers act as an adviser or sub-adviser, except for Emerald Mutual funds.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Receive a gift of more than $200 per calendar year from any person or organization that does business with or on behalf of the adviser. No access person may offer a gift of more than $200 per calendar year to clients, prospects or any organization that does business with or on behalf of the adviser. All access persons will report all gifts, given and received, regardless of value. No access person may provide or accept excessive entertainment to or from a client, prospect or organization that does business with or on behalf of the adviser. Access persons may provide or accept entertainment valued at $400 or less per year per person. Examples of reasonable entertainment would be a meal or ticket to a sporting event providing that both an access person from the adviser and the representative from the giving/receiving organization is present. All entertainment, given or received, will be reported. Exceptions may be granted by the CCO under certain circumstances provided the value of the gift or entertainment is appropriate and would not be viewed as overly generous or aimed at influencing the decision-making process of either the adviser or the client, prospect or organization that does business on behalf of the adviser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)Acquire directly or indirectly any beneficial ownership in any securities in an IPO. An exception may be granted if a family member is issuing an IPO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vi)Acquire directly or indirectly any beneficial ownership in any securities in a Limited Offering without prior approval of the *Chief Compliance Officer* or his designee. Any person authorized to purchase securities in a Limited Offering shall disclose such investment when they play a part in any subsequent consideration of an investment by the Adviser in the issuer. In such circumstances, the Advisers decision to purchase securities of the issuer shall be subject to independent review by the Advisers' officers with no personal interest in the issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(vii)Applicable only to portfolio managers identified on Schedule A from time to time, buy or sell a Covered Security within at least seven (7) calendar days before and after any account that he or she manages trades in that security. Any profits realized on trades within the proscribed period are required to be disgorged. Schedule A will be amended as necessary to reflect changes in Advisers personnel.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(viii)Profit in the purchase and sale, or sale and purchase, of the same (or equivalent) securities within 60 calendar days. Any profits realized on such short-term trades must be disgorged. This Section 2.(b)(viii) shall not apply to options on broad-based indexes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ix)Serve on the board of directors of any publicly traded company without prior authorization from the Advisers . Any such authorization shall be based upon a determination that the board service would be consistent with the interests of the Adviser and its clients. If an access person is authorized to serve on a board of directors of any publicly traded company, the Advisers will not invest in that company's securities for our clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(x)Make any political contributions. This includes personal contributions to a candidate for any office whether you can vote for that candidate or not. This includes personal contributions for a candidate by yourself, spouse, minor children, or anyone living in your house.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(xi)Solicit contributions for a candidate by yourself, spouse, minor children or anyone living in your household. This includes the following activities:

&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;a)Hosting or co-hosting an event for a candidate

&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;b)Requesting that people make a contribution for a candidate

&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;c)Asking a friend of family member to solicit contributions for a candidate

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**3.<u>EXEMPTED</u> <u>TRANSACTIONS</u>**

The prohibitions of Sections 2(b) and 2(c) shall not apply to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)purchases or sales effected in any account over which the Access Person has no direct or indirect influence or control;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)purchases or sales which are non-volitional on the part of either the Access Person or the Advisers;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)purchases which are part of an automatic dividend reinvestment plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)purchases effected upon the exercise of rights issued by an issuer <u>pro</u> <u>rata</u> to all holders of a class of its securities, to the extent such rights were acquired from such issuer, and sales of such rights so acquired; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)purchases or sales other than those exempted in (a) through (d) of this Section 3 that have been authorized in advance and in writing by the *Chief Compliance Officer* following a specific determination that the transaction is consistent with the provisions of the Preamble.

**4.<u>COMPLIANCE</u> <u>PROCEDURES</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)<u>Pre-clearanc</u>e

All Access Persons shall receive prior approval from the *Chief Compliance Officer* or other officer designated by the Advisers before purchasing or selling securities. Any approval is valid only for the day authorization is received. If an Access Person is unable to effect the securities transaction during such period, he or she must re-obtain approval prior to effecting the securities transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)<u>Reporting</u> <u>Requirement</u><u>s</u>

**Initial & Annual Reports** All Access Persons shall disclose to the *Chief Compliance Officer* within 10 days of becoming an Access Person, and thereafter on an annual basis as of December 31(i) the name, number of shares and principal amount of each Covered Security in which the Access Person has any direct or indirect beneficial ownership and(ii) the name of any broker, dealer or bank with whom the Access Person maintains a securities account. The initial holdings report shall be made on the form attached as <u>Exhibit A</u>, and the annual holdings report shall be made on the form attached as <u>Exhibit B</u>. Holding report information must be current as of 45 days prior to becoming an Access Person.

**Quarterly Reports** Every Access Person shall report to the Chief Compliance Officer the information described below with respect to transactions in any Covered Security in which such person has, or by reason of such transaction acquires, any direct or indirect beneficial ownership in the security; provided, however, that an Access Person shall not be required to make a report with respect to transactions effected for any account over which such person has no direct or indirect influence or control.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)Reports required to be made under this Paragraph (b) shall be made not later than 30 days after the end of the calendar quarter. Every Access Person shall be required to submit a report for all periods, including those periods in which no securities transactions were effected. A report shall be made on the form attached hereto as <u>Exhibit C</u> or on any other form containing the following information:

With respect to any transaction during the quarter in a Covered Security in which the Access Person had any direct or indirect beneficial ownership:

&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;(A)the date of the transaction, the name, the interest rate and maturity date (if applicable), the number of shares, and the principal amount of each Covered Security involved;

&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;(B)the nature of the transaction (*i.e.*, purchase, sale or any other type of acquisition or disposition);

&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;(C)the price of the Covered Security at which the transaction was effected;

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&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;(D)the name of the broker, dealer or bank with or through which the transaction was effected; and

&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;(E)the date that the report is submitted by the Access Person.

With respect to any securities account established at a broker, dealer, or bank during the quarter for the direct or indirect benefit of the Access Person:

&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;(A)the name of the broker, dealer or bank with whom the Access Person established the account;

&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;(B)the date the account was established; and

&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;(C)the date that the report is submitted by the Access Person.

Any report may contain a statement that the report shall not be construed as an admission by the person making such report that he or she has any direct or indirect beneficial ownership in the security to which the report relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)<u>Provision</u> <u>of</u> <u>Brokers'</u> <u>Statement</u>s

Every Access Person shall direct their brokers to supply to the Chief Compliance Officer, on a timely basis, duplicate copies of all periodic statements for all securities accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)<u>Notification</u> <u>of</u> <u>Reporting</u> <u>Obligation</u>s

The Chief Compliance Officer shall notify each Access Person that he or she is subject to these reporting requirements, and shall deliver a copy of this Code of Ethics to each such person upon request.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)<u>Certification</u> <u>of</u> <u>Compliance</u> <u>with</u> <u>Code</u> <u>of</u> <u>Ethic</u>s

Every Access Person shall certify in an annual report that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)they have read and understand the Code of Ethics and recognize that they are subject thereto;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)they have complied with the requirements of the Code of Ethics; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)they have reported all personal securities transactions required to be reported pursuant to the requirements of the Code of Ethics.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)Any person who, in good faith, observes, discovers or identifies an actual or potential violation of the code, must be free to report the incident to the Compliance Officer or General Counsel (Troutman Pepper Locke, 215- 981-4009) without fear of retaliation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)<u>Conflict</u> <u>of</u> <u>Interes</u>t

Every Access Person shall notify the Chief Compliance Officer of any personal conflict of interest relationship which may involve the Advisers, such as the existence of any economic relationship between their transactions and securities held or to be acquired by the Advisers. Such notification shall occur in the pre- clearance process.

Annually, every Access Person shall notify the Chief Compliance Officer of all publicly traded companies for which you or any relative serve as officers or directors. Additionally, every Access Person shall notify the Chief Compliance Officer of any relatives who are employed or affiliated with a broker-dealer. This notification will include the name of the relative, description of their position and the name of the broker-dealer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)<u>Review</u> <u>of</u> <u>Report</u>s

The Chief Compliance Officer or his designate immediately shall review all personal holdings reports, submitted by each Access Person, including confirmations of personal securities transactions, to ensure no trading has taken place in violation of Rule 17j-1 or the Code of Ethics. Any violations of the Code of Ethics shall be reported to the Board in accordance with Section 5 of the Code. The Chief Compliance Officer shall maintain a list of the personnel responsible for reviewing the transactions and personal holdings reports.

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**5.<u>REPORTING</u> <u>OF</u> <u>VIOLATIONS</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)The Chief Compliance Officer shall promptly report:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)all apparent violations of this Code of Ethics and the reporting requirements thereunder.

**6.<u>SANCTIONS</u>**

Upon discovering a violation of this Code, the senior management of the Advisers may impose such sanctions as they deem appropriate, including, among other things, a letter of censure or suspension or termination of the employment of the violator.

**7.<u>RETENTION</u> <u>OF</u> <u>RECORDS</u>**

This Code of Ethics, a list of all persons required to make reports hereunder from time to time, a copy of each report made by an *Access Person* hereunder, a list of all persons responsible for reviewing the reports required hereunder, a record of any decision and the reasons supporting the decision to approve the acquisition by *Investment Personnel* of securities in a Limited Offering, each memorandum made by the Chief Compliance Officer hereunder and a record of any violation hereof and any action taken as a result of such violation, shall be maintained by the Advisers as required under Rule 17j-1.

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**SCHEDULE A**

Kenneth G. Mertz II

Stacey L. Sears

Joseph W. Garner

David Volpe

Steven Russell

Stephen Amsterdam

Andrew Smith

Ori Elan

i

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**POLICY STATEMENT ON INSIDER TRADING**

**SECTION I.&nbsp;&nbsp;&nbsp;&nbsp;<u>POLICY</u> <u>STATEMENT</u> <u>ON</u> <u>INSIDER</u> <u>TRADING</u>**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.<u>Policy</u> <u>Statement</u> <u>on</u> <u>Insider</u> <u>Trading</u>

The Emerald companies (the "Advisers") forbid any director, officer or employee from trading, either personally or on behalf of a Client Account, on material nonpublic information, or communicating material nonpublic information to other persons in violation of the law. This conduct is frequently referred to as "insider trading". The Advisers' policy applies to every director, officer and employee and extends to activities within and outside their duties for the Advisers. Every managing member and employee must read and retain a copy of this policy statement. Any questions regarding the policy and procedures should be referred to the Chief Compliance Officer.

The term "insider trading" is not defined in the federal securities laws, but generally is used to refer to the use of material nonpublic information to trade in securities (whether or not one is an "insider") or to communications of material nonpublic information to others.

While the law concerning insider trading is not static, it is generally understood that the law prohibits:

&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;i)trading by an insider, while in possession of material nonpublic information, or

ii)trading by a non-insider, while in possession of material nonpublic information, where the information either was disclosed to the non- insider in violation of an insider's duty to keep it confidential or was misappropriated, or

iii)communicating material nonpublic information to others.

The elements of insider trading and the penalties for such unlawful conduct are discussed below. If, after reviewing this policy statement, you have any questions, you should consult the Chief Compliance Officer, James Meehan, or his successor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Who</u> <u>is</u> <u>an</u> <u>Insider</u>?

The concept of "insider" is broad. It includes partners and employees of a company. In addition, a person can be a "temporary insider" if he or she enters into a special confidential relationship in the conduct of a company's affairs and as a result is given access to information solely for the company's purposes. A temporary insider can include, among others, a company's attorneys, accountants, consultants, bank lending officers, and the employees of such organizations. In addition, the Advisers may become a temporary insider of a company it advises or for which it performs other services. According to the U.S. Supreme Court, the

company must expect the outsider to keep the disclosed nonpublic information confidential and the relationship must at least imply such a duty before the outsider will be considered an insider.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>What</u> <u>is</u> <u>Material</u> <u>Information</u>?

Trading on inside information is not a basis for liability unless the information is material. "Material information" generally is defined as information for which there is a substantial likelihood that a reasonable investor would consider it important in making his or her investment decisions, or information that is reasonably certain to have a substantial effect on the price of a company's securities. Information that managing members and employees should consider material includes, but is not limited to: dividend changes, earnings estimates, changes in previously released earnings estimates, significant merger or acquisition proposals or agreements, major litigation, liquidation problems, and extraordinary management developments.

ii

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Material information does not have to relate to a company's business. For example, in <u>Carpenter v. U.S.</u>, 108 U.S. 316 (1987), the Supreme Court considered material certain information about the contents of a forthcoming newspaper column that was expected to affect the market price of a security. In that case, a <u>Wall Street Journal</u> reporter was found criminally liable for disclosing to others the dates that reports on various companies would appear in the <u>Journal</u> and whether those reports would be favorable or not.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>What</u> <u>is</u> <u>Nonpublic</u> <u>Information</u>?

Information is nonpublic until it has been effectively communicated to the market place. One must be able to point to some fact to show that the information is generally public.

For example, information found in a report filed with the SEC, or appearing in <u>Dow Jones</u>, <u>Reuters</u> <u>Economic</u> <u>Services</u>, <u>The</u> <u>Wall</u> <u>Street</u> <u>Journal</u> or other publications of general circulation would be considered public.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Basis</u> <u>for</u> <u>Liability</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;i)fiduciary duty theory

In 1980, the Supreme Court found that there is no general duty to disclose before trading on material nonpublic information, but that such a duty arises only where there is a fiduciary relationship. That is, there must be a relationship between the parties to the transaction such that one party has a right to expect that the other party will disclose any material nonpublic information or refrain from trading. <u>Chiarella v. U.S.</u>, 445 U.S. 22 (1980).

In <u>Dirks v. SEC</u>, 463 U.S. 646 (1983), the Supreme Court stated alternate theories under which non-insiders can acquire the fiduciary duties of insiders: they can enter into a confidential relationship with the company through which they gain information (<u>i.e.</u>, attorneys, accountants), or they can acquire a fiduciary duty to the company's shareholders as "tippees" if they are aware or

should have been aware that they have been given confidential information by an insider who has violated his fiduciary duty to the company's shareholders.

However, in the "tippee" situation, a breach of duty occurs only if the insider personally benefits, directly or indirectly from the disclosure. The benefit does not have to be pecuniary, but can be a gift, a reputational benefit that will translate into future earnings, or even evidence of a relationship that suggests a <u>quid</u> <u>pro</u> <u>quo</u>.

ii)misappropriation theory

Another basis for insider trading liability is the "misappropriation" theory, where liability is established when trading occurs on material nonpublic information that was stolen or misappropriated from any other person. In <u>U.S. v. Carpenter</u>, <u>supra</u>, the Court found, in 1987, a columnist defrauded <u>The Wall Street Journal</u> when he stole information from the <u>Journal</u> and used it for trading in the securities markets. It should be noted that the misappropriation theory can be used to reach a variety of individuals not previously thought to be encompassed under the fiduciary duty theory.

iii

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Penalties</u> <u>for</u> <u>Insider</u> <u>Trading</u>

Penalties for trading on or communicating material nonpublic information are severe, both for individuals involved in such unlawful conduct and their employers. A person can be subject to some or all of the penalties below even if he or she does not personally benefit from the violation. Penalties include:

&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;i)civil injunctions

ii)treble damages

iii)disgorgement of profits

iv)jail sentences

&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;v)fines for the person who committed the violation of up to three times the profit gained or loss avoided, whether or not the person actually benefited, and

vi)fines for the employer or other controlling person of up to the greater of $1,000.00 or three times the amount of the profit gained or loss avoided.

In addition, any violation of this policy statement can be expected to result in serious sanctions by the Advisers, including dismissal of the persons involved.

**SECTION II.&nbsp;&nbsp;&nbsp;&nbsp;<u>PROCEDURES</u> <u>TO</u> <u>IMPLEMENT</u> <u>INSIDER</u> <u>TRADING</u> <u>POLICY</u>**

The following procedures have been established to aid the officers and employees of the Advisers to avoid insider trading, and to aid the Advisers in preventing, detecting and imposing sanctions against insider trading. **Every managing member and employee of the Advisers must follow these procedures or risk serious sanctions, including dismissal, substantial personal liability and criminal penalties.** If you have any questions about these procedures, you should consult the Adviser's chief compliance officer, James Meehan.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Identifying</u> <u>Inside</u> <u>Information</u>

Before trading for yourself or others, including Client Accounts, in the securities of a company about which you may have potential inside information, ask yourself the following questions:

&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;i)Is the information material? Is this information that an investor would consider important in making his or her investment decisions? Is this information that would substantially effect the market price of the securities if generally disclosed?

ii)Is the information nonpublic? To whom has this information been provided? Has the information been effectively communicated to the marketplace by being published in <u>Reuters</u>, <u>The Wall Street</u> <u>Journal</u>, or other publications of general circulation?

If, after consideration of the above, you believe that the information is material and nonpublic, or if you have questions as to whether the information is material and nonpublic, you should take the following steps.

iii)Report the matter immediately to the chief compliance officer.

iv)Do not purchase or sell the securities on behalf of yourself or others, including Client Accounts.

&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;v)Do not communicate the information inside or outside the Adviser, other than to the chief compliance officer

vi)After the chief compliance officer has reviewed the issue, you will be instructed to continue the prohibitions against trading and communication, or you will be allowed to trade and communicate the information.

iv

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Personal Security Trading</u>. All officers and employees of the Adviser (other than managing members and employees who are required to report their securities transactions to a registered investment company in accordance with a Code of Ethics) shall submit to the compliance officer, on a quarterly basis, a report of every securities transaction in which they, their families (including the spouse, minor children and adults living in the same household as the managing member or employee), and trusts of which they are trustees or in which they have a beneficial interest have participated, or at such lesser intervals as may be required from time to time. The report shall include the name of the security, date of the transaction, quantity, price, and broker-dealer through which the transaction was effected. All managing members and employees must also instruct their broker(s) to supply the Chief Compliance Officer, on a timely basis, with duplicate copies of confirmations of all personal securities transactions and copies of all periodic statements for all securities accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Restricting Access to Material Non-public Information</u>. Any information in your possession that you identify as material and non-public may not be communicated other than in the course of performing your duties to anyone, including persons within your company, except as provided in paragraph 1 above. In addition, care should be taken so that such information is secure. For example, files containing material non-public information should be sealed and access to computer files containing material non-public information should be restricted<u>.</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Resolving Issues Concerning Insider Trading</u>. If, after consideration of the items set forth in paragraph 1, doubt remains as to whether information is material or non-public, or if there is any unresolved question as to the applicability or interpretation of the foregoing procedures, or as to the propriety of any action, it must be discussed with the chief compliance officer before trading or communicating the information to anyone<u>.</u>

<u>SUPERVISION</u>

The role of the chief compliance officer is critical to the implementation and maintenance of this Statement on Insider Trading. These supervisory procedures can be divided into two classifications, (1) the prevention of insider trading, and (2) the detection of insider trading.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Prevention</u> <u>of</u> <u>Insider</u> <u>Trading</u>:

To prevent insider trading the chief compliance officer should:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)answer promptly any questions regarding the Statement on Insider Trading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)resolve issues of whether information received by a managing member or employee is material and non-public;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)review and ensure that managing members and employees review, at least annually, and update as necessary, the Statement on Insider Trading; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)when it has been determined that a managing member or employee has material non-public information,

&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;(i)implement measures to prevent dissemination of such information, and

&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;(ii)if necessary, restrict officers, directors, and employees from trading the securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Detection</u> <u>of</u> <u>Insider</u> <u>Trading</u>:

To detect insider trading, the chief compliance officer should:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)review the trading activity reports filed by each officer and employee, to ensure no trading took place in securities in which the Adviser has material non-public information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)review the trading activity of the client base managed by the Adviser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)coordinate, if necessary, the review of such reports with other appropriate officers, members, trustees or employees of the Adviser and any mutual funds managed by the Adviser.

v

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Special</u> <u>Reports</u> <u>to</u> <u>Management</u>:

Promptly, upon learning of a violation of the Statement on Insider Trading, the chief compliance officer must prepare a written report to management of the Adviser, and provide a copy of such report to the Board of Trustees/Directors of the mutual funds managed by the Adviser, providing full details and recommendations for further action.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>Annual</u> <u>Reports</u>:

On an annual basis, the Chief Compliance Officer of the Adviser will prepare a written report to the management of the Adviser, and provide a copy of such report to the Board of Trustees/Directors of the any mutual funds managed by the Adviser, setting forth the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)a summary of the existing procedures to detect and prevent insider trading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)full details of any investigation, either internal or by a regulatory agency, of any suspected insider trading and the results of such investigation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)an evaluation of the current procedures and any recommendations for improvement.

The Undersigned has read, understands and agrees to abide by the foregoing Insider Trading Policy and has retained a copy of the said document.

Date: <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;</u>&nbsp;&nbsp;&nbsp;&nbsp;Signature:&nbsp;&nbsp;&nbsp;&nbsp;<u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

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**EXHIBIT A**

*CODE OF ETHICS* 

*INITIAL HOLDINGS REPORT*

To the Chief Compliance Officer of Emerald Advisers, LLC. and Emerald Mutual Fund Advisers Trust

&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;1.I hereby acknowledge receipt of a copy of the Code of Ethics for Emerald Advisers, LLC**.** and Emerald Mutual Fund Advisers Trust (the "Advisers").

&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;2.I have read and understand the Code and recognize that I am subject thereto in the capacity of an "Access Person."

&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;3.Except as noted below, I hereby certify that I have no knowledge of the existence of any personal conflict of interest relationship which may involve the Advisers , such as any economic relationship between my transactions and securities held or to be acquired by the Advisers .

&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;4.As of the date below I had a direct or indirect beneficial ownership interest in the following securities:

<u>Name of Securities</u> <u>Number of Shares</u> <u>Type of Interest</u> <br> <u>(Direct or Indirect)</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;5.As of the date below, the following is a list of all brokers, dealers or banks with whom I maintain an account in which securities are held for my direct or indirect benefit:

<u>Firm</u> <u>Account</u> <u>Type of Interest</u> <br> <u>(Direct or Indirect)</u>

Date: Signature: _____________________________________ <br> Print Name: ___________________________________Title: _________________________________________Employer's Name: ______________________________

A

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**EXHIBIT B**

*CODE OF ETHICS* 

*ANNUAL HOLDINGS REPORT*

To the Chief Compliance Officer of Emerald Advisers, LLC and Emerald Mutual Fund Advisers Trust:

&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;1.I have read and understand the Code of Ethics and recognize that I am subject thereto in the capacity of an "Access Person."

&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;2.I hereby certify that, during the year ended December 31, <u>&nbsp;&nbsp;&nbsp;&nbsp;</u>, I have complied with the requirements of the Code and I have reported all securities transactions required to be reported pursuant to the Code.

&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;3.Except as noted below, I hereby certify that I have no knowledge of the existence of any personal conflict of interest relationship which may involve the Advisers , such as any economic relationship between my transactions and securities held or to be acquired by the Advisers .

&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;4.As of December 31, <u>&nbsp;&nbsp;&nbsp;&nbsp;</u>, I had a direct or indirect beneficial ownership interest in the following securities:

<u>Name</u> <u>of</u> <u>Securities</u>&nbsp;&nbsp;&nbsp;&nbsp;<u>Number</u> <u>of</u> <u>Shares</u>&nbsp;&nbsp;&nbsp;&nbsp;Type of Interest

<u>(Direct</u> <u>or</u> <u>Indirect)</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;5.As of the December 31, the following is a list of all brokers, dealers or banks with whom I maintain an account in which securities are held for my direct or indirect benefit:

<u>Firm</u>&nbsp;&nbsp;&nbsp;&nbsp;<u>Account</u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Type of Interest

<u>(Direct</u> <u>or</u> <u>Indirect)</u>

Date: Signature: _____________________________________ <br> Print Name: ___________________________________Title: _________________________________________Employer's Name: ______________________________

B

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**EXHIBIT C**

*SECURITIES TRANSACTIONS REPORT*

*FOR THE CALENDAR QUARTER ENDED:* <u>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</u>

To the Chief Compliance Officer of Emerald Advisers, LLC and Emerald Mutual Fund Advisers Trust:

During the quarter referred to above, the following transactions were effected in securities of which I had, or by reason of such transaction acquired, direct or indirect beneficial ownership, and which are required to be reported pursuant to the Code of Ethics adopted by the Adviser.

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| | | | | | | |
|:---|:---|:---|:---|:---|:---|:---|
| &nbsp;&nbsp;SECURITY<br>(including interest rate and maturity date, if<br>applicable) | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>DATE OF TRANSACTION | &nbsp;&nbsp;&nbsp;<br>NO. OF SHARES | &nbsp;&nbsp;&nbsp;&nbsp;<br>DOLLAR AMOUNT OF<br>TRANSACTION | &nbsp;&nbsp;&nbsp;<br>NATURE OF TRANSACTION<br>(Purchase, Sale, Other) | &nbsp;&nbsp;<br>PRICE | &nbsp;&nbsp;&nbsp;BROKER/ DEALER OR BANK THROUGH<br>WHOM EFFECTED |

---

During the quarter referred to above, the following accounts were established by me in which securities were held for my direct or indirect benefit:

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| | | |
|:---|:---|:---|
| FIRM NAME<br>(of broker, dealer or bank) | DATE THE ACCOUNT WAS ESTABLISHED | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<br>ACCOUNT NUMBER |

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This report (i) excludes transactions with respect to which I had no direct or indirect influence or control, (ii) other transactions not required to be reported, and (iii) is not an admission that I have or had any direct or indirect beneficial ownership in the securities listed above.

Except as noted on the reverse side of this report, I hereby certify that I have no knowledge of the existence of any personal conflict of interest relationship which may involve the Adviser, such as the existence of any economic relationship between my transactions and securities held or to be acquired by the Adviser.

Date: Signature: _____________________________________ <br> Print Name: ___________________________________Title: _________________________________________Employer's Name: ______________________________

## Ex-99.(P)(18)

Nuveen Compliance \| January 27, 2025

**nuveen**

**A TIAA Company**

**Code of Ethics *- Americas***

**SUMMARY AND SCOPE**

**What the Code is about**

Helping to ensure that Nuveen and TIAA Employees place the interests of Nuveen clients ahead of their own personal interests.

**Who the Code applies to and what the implications are**

This Code applies to individuals in the following categories:

• Nuveen Employees based in the US or Canada (except employees of Nuveen Natural Capital, unless the local/ designated Chief Compliance Officer and Nuveen Ethics Office determine otherwise).

• Employees of any US-registered investment adviser who are based outside the US.

• Consultants, interns, and temporary workers based in the US or Canada whose contract length is 90 days or more, unless the Nuveen Ethics Office determines otherwise.

• TIAA Employees, consultants, interns, and temporary workers designated as Access Persons by a Nuveen Funds Chief Compliance Officer or the Nuveen Ethics Office.

Independent directors and trustees of the CREF/VA-1 and Nuveen Fund Complex have their own Code of Ethics and are not subject to this one.

For individuals who are subject to the Code, there are two designations with different implications: Access Person and Investment Person.

**ACCESS PERSON**

All Nuveen Employees and TIAA Employees who are subject to the Code are considered Access Persons, since they have, or could have, access to non-public information about securities transactions and other investments, holdings, or recommendations for Affiliate-Advised Accounts or Portfolios.

**Key characteristics of this designation.** An individual may be considered an Access Person of multiple advisers affiliated with Nuveen, or of only one. If your regular duties give you access to non-public information, or you are an officer of a Nuveen sponsored or branded fund, your personal trading is generally monitored only against the trading activity of the specific adviser(s) or Affiliated Funds with which you are involved. For other employees, personal trading is typically monitored against the trading activities of all US advisers affiliated with Nuveen. You will generally not be permitted to execute transactions in a security on any day when an Affiliate-Advised Account or Portfolio managed by the adviser(s) that you are monitored against has a pending buy or sell order for that security at the time of your pre-clearance request.

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**INVESTMENT PERSON**

An Access Person who meets any of the following criteria will in addition be considered an Investment Person:

• The Access Person is a Portfolio Manager, Research Analyst or Research Assistant, or they otherwise participate in making recommendations or decisions concerning the purchase or sale of securities in any Affiliate-Advised Account or Portfolio.

• The Access Person has been designated an Investment Person by the affiliate Chief Compliance Officer or the Nuveen Ethics Office.

**Key characteristics of this designation.** The vast majority of Investment Persons are employees of Nuveen's affiliated investment advisers.

An Investment Person is prohibited from transacting in securities during the period starting 7 calendar days before, and ending 7 calendar days after, any trade in an Affiliate-Advised Account or Portfolio for which he/she has responsibility. In addition, an Investment Person's personal transactions will be reviewed for conflicts in the period starting 7 calendar days before, and ending 7 calendar days after, all trades by their associated investment adviser(s). In some cases, the Investment Person may be required to reverse a trade and/or forfeit an appropriate portion of any profit as determined by the Nuveen Ethics Office. These consequences can apply whether or not the trade was pre-cleared.

The personal trading of Investment Persons is generally only monitored against the trading activity of the specific adviser(s) for which they have been designated an Investment Person.

**Important to understand**

**Some of our affiliated investment advisers may have supplemental policies of their own that impose additional rules on the same topics covered in this Code.** Check with your manager or local/designated Chief Compliance Officer if you have questions.

**Personal trading is a privilege, not a right.** Nuveen and TIAA Employees are expected to follow the law and adhere to the highest standards of behavior—including with respect to personal trading. Any violation of the Code could have severe adverse effects on you, your co-workers, and Nuveen. You may be held personally liable for your conduct and be subject to fines, regulatory sanctions, and even criminal penalties.

Because Nuveen can restrict your trading or take actions such as forcing you to hold a position or to disgorge profits, personal trading carries risks beyond normal market risks.

**Some requirements in this Code apply to Household Members.** Each Household Member (see "Terms with Special Meanings" below) is subject to the same personal trading restrictions and requirements that apply to his/her related Nuveen and TIAA Employees.

**The Code does not address every ethical issue that might arise.** If you have any doubt at all after consulting the Code, contact the Nuveen Ethics Office for direction.

**The Code applies to appearance as well as substance.** Always consider how any action might appear to an outside observer (such as a client or regulator).

**You are expected to follow the Code both in letter and in spirit.** Literal compliance, such as pre-clearing a transaction, does not necessarily protect you from liability for conduct that violates the spirit of the Code. If you have questions about how to comply with this Code, consult the Nuveen Ethics Office.

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| |
|:---|
| **WHO TO CONTACT** |
| **Nuveen Ethics Office (Americas)**<br> nuveenethicsoffice@nuveen.com |

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;**TERMS WITH SPECIAL MEANINGS** |  |
| &nbsp;&nbsp;&nbsp;Within this policy, these terms are defined as follows:<br>**Affiliate-Advised Account or Portfolio** Any Affiliated Fund, or any portfolio or client account advised or sub- advised by Nuveen.<br>**Affiliated Fund** Any TIAA-CREF or Nuveen branded or sponsored open-end fund, closed-end fund, or Exchange Traded Fund (ETF), and any third-party fund advised or sub-advised by Nuveen.<br>**Automatic Investment Plan** Any program, such as a dividend reinvestment plan (DRIP), under which investment account purchases or withdrawals occur according to a predetermined schedule and allocation.<br>**Beneficial Ownership** Any interest by which you or any Household Member—directly or indirectly—derives a monetary benefit from purchasing, selling, or owning a security or account, or exercises investment discretion.<br>You have Beneficial Ownership of securities held in accounts in your own name, or any Household Member's name, and in all other accounts over which you or any Household Member exercises or may exercise investment decision- making powers, or other influence or control, including trust, partnership, estate, and corporate accounts or other joint ownership or pooling arrangements.<br>**Code** This Code of Ethics.<br>**Domestic Partner** An individual who is neither a relative of nor legally married to a Nuveen or TIAA Employee but shares a residence and is in a mutual commitment similar to marriage with such employee. | &nbsp;&nbsp;&nbsp;&nbsp;**Federal Securities Laws** The applicable portions of any of the following laws, as amended, and of any rules adopted under them by the Securities and Exchange Commission or the Department of the Treasury:<br>&nbsp;&nbsp;&nbsp;&nbsp;• Securities Act of 1933.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Securities Exchange Act of 1934.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Investment Company Act of 1940.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Investment Advisers Act of 1940.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Sarbanes-Oxley Act of 2002.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Title V of the Gramm-Leach-Bliley Act.<br>&nbsp;&nbsp;&nbsp;&nbsp;• The Bank Secrecy Act.<br>**Household Member** Any of the following who reside, or are expected to reside for at least 90 days a year, in the same household as a Nuveen or TIAA Employee:<br>&nbsp;&nbsp;&nbsp;&nbsp;• Spouse or Domestic Partner.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Sibling.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Child, stepchild, grandchild.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Parent, stepparent, grandparent.<br>&nbsp;&nbsp;&nbsp;&nbsp;• In-laws (mother, father, son, daughter, brother, sister).<br>**Independent Director** Any director or trustee of an Affiliated Fund who is not an "interested person" within the meaning of Section 2(a)(19) of the Investment Company Act of 1940, as amended.<br>**Managed Account** Any account, including robo-advised accounts, in which you or a Household Member has Beneficial Ownership and for which you have delegated full investment discretion in writing to a third- party broker or investment manager.<br>**Nuveen** Nuveen, LLC and all of its direct or indirect subsidiaries worldwide. |

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;**TERMS WITH SPECIAL MEANINGS (continued)** |  |
| &nbsp;&nbsp;&nbsp;**Nuveen Employee** Any full- or part-time employee of Nuveen, and any consultants, interns or temporary workers designated by the Nuveen Ethics Office.<br>**Private Placement** Any offering exempt from registration under the Securities Act of 1933, such as a private equity investment, hedge fund, or limited partnership. A private investment in public equity (PIPE) is also considered a Private Placement.<br>**Reportable Account** Any account for which you or a Household Member has Beneficial Ownership AND in which securities can be bought, sold or held. This includes, among others:<br>&nbsp;&nbsp;&nbsp;&nbsp;• All brokerage, IRA, custodial and trust accounts.<br>&nbsp;&nbsp;&nbsp;&nbsp;• All Managed Accounts.<br>&nbsp;&nbsp;&nbsp;&nbsp;• All 529 College Savings Plan accounts.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Any employer sponsored retirement plan account (e.g. 401(k), 403(b)) that permits transactions in any Reportable Security, or is held with a bank or broker-dealer, including TIAA 401(k) plan accounts.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Any direct holding in an Affiliated Fund.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Any health savings account (HSA) that permits the purchase of any security. Note, if you have a TIAA HSA administered by HealthEquity, you are required to manually report this account in StarCompliance at the time your balance reaches $1,000 and you elect the option for an investment account.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Any employee stock purchase plan (ESPP) or employee stock ownership plan (ESOP).<br>The following are NOT considered Reportable Accounts:<br>&nbsp;&nbsp;&nbsp;&nbsp;• Charitable giving accounts.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Accounts held directly with a mutual fund complex or mutual fund- only platform that are not held at a bank or broker-dealer, and in which open-end, non-Affiliated Funds are the only possible investment.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Any cash management account in which a security cannot be purchased or sold.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Any accounts that can invest only in cryptocurrency such as Bitcoin or Ethereum. | &nbsp;&nbsp;&nbsp;&nbsp;**Reportable Security** Any security EXCEPT:<br>&nbsp;&nbsp;&nbsp;&nbsp;• Direct obligations of the US government (indirect obligations, such as Fannie Mae and Freddie Mac securities, are reportable).<br>&nbsp;&nbsp;&nbsp;&nbsp;• Certificates of deposit, bankers' acceptances, commercial paper, and high quality short-term debt (including repurchase agreements).<br>&nbsp;&nbsp;&nbsp;&nbsp;• Money market funds.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Open-end funds that are not Affiliated Funds.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Note that closed-end funds are Reportable Securities.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Note that direct investments in cryptocurrency, such as Bitcoin, are not considered to be a security and are therefore not reportable.<br>**Reportable Transaction** Any transaction involving a Reportable Security EXCEPT:<br>&nbsp;&nbsp;&nbsp;&nbsp;• Transactions in Managed Accounts. Section 16 Persons: Transactions involving Nuveen closed-end funds in any of your Managed Accounts are reportable.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Transactions under an Automatic Investment Plan; note that transactions that override the pre-set schedule or allocation are reportable.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Dividends.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Interest Accrued.<br>**Section 16 Person** Section 16 of the Exchange Act and the rules thereunder impose certain obligations on persons specified in section 30(h) of the Investment Company Act of 1940, as well as insiders of any public company that trades on a national stock exchange (such as a Nuveen closed-end fund). For purposes of Section 16, an "insider" is:<br>&nbsp;&nbsp;&nbsp;&nbsp;• A director of a public company.<br>&nbsp;&nbsp;&nbsp;&nbsp;• A designated officer of a public company.<br>&nbsp;&nbsp;&nbsp;&nbsp;• A person who beneficially owns 10% or more of any class of equity security that is registered under Section 12 of the Exchange Act.<br>&nbsp;&nbsp;&nbsp;&nbsp;• A portfolio manager of a Nuveen closed-end fund.<br>Persons subject to Section 16 include, but are not limited to, portfolio managers of the Nuveen closed-end funds.<br>**TIAA Employee** Any full- or part-time employee of TIAA any consultants, interns and temporary workers as designated by the Nuveen Ethics Office. |

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**GENERAL RESTRICTIONS AND REQUIREMENTS**

**BASIC PRINCIPLES**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.Never abuse a client's trust, rights, or interests.**

This means you must never do any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Engage in any plan or action, or use any device, that would defraud or deceive a client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Make any material statements of fact that are incorrect or misleading, either as to what they include or omit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Engage in any manipulative practice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Use your position (including any knowledge or access to opportunities you have gained by virtue of your position) to personal advantage or to a client's disadvantage. This would include, for example, front-running or tailgating (trading directly before or after the execution of a large client trade order), or any attempt to influence a client's trading to enhance the value of your personal holdings.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Conduct personal trading in any way that could be inconsistent with your fiduciary duties to a client (even if it does not technically violate the Code).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.Handle conflicts of interest appropriately.** This applies not only to actual conflicts of interest, but also to any situation that might appear to an outside observer to be improper or a breach of fiduciary duty.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.Keep confidential information confidential.** Always properly safeguard any confidential information you obtain in the course of your work. This includes confidential information related to any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any Affiliate-Advised Account or Portfolio and any other financial product offered or serviced by Nuveen.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• New products, product changes, or business initiatives.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Past, current, and prospective clients, including their identities, investments, and account activity.

"Keeping information confidential" means using discretion in disclosing information as well as guarding against unlawful or inappropriate access by others.

This includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Making sure no confidential information is visible on your computer screen and desk when you are not there.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Not sharing passwords with others.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Using caution when discussing business in any location where your conversation could be overheard. Confidential information may be released only as required by law or as permitted under the applicable privacy policy(ies). Consult the Nuveen Ethics Office or your local/designated CCO before releasing any confidential information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4.Handle Material Non-Public Information properly.** Follow all terms described in "Material Non-Public Information" below. Be aware that any failure to handle such information properly is a serious offense and may lead to disciplinary action from Nuveen or TIAA as well as serious civil or criminal liability.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5.Comply with Federal Securities Laws.** Any violation of these laws is punishable as a violation of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6.Never do anything indirectly that, if done directly, would violate the Code.** Such actions will be considered the equivalent of direct Code violations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7.Promptly alert the Nuveen Ethics Office or your local/designated CCO of any actual or suspected wrongdoing.** Examples of wrongdoing include violations of the Federal Securities Laws, misuse of corporate assets, misuse of confidential information, or other violations of the Code. If you prefer to report confidentially, call the TIAA Confidential Helpline at 1-877-774-6492. Note that failure to report suspected wrongdoing in a timely fashion is itself a violation of the Code.

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**PRE-CLEARANCE AND HOLDING REQUIREMENTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8.Pre-clear any trade in Reportable Securities, including certain Affiliated Funds** (see box on next page for additional information).

If your trade requires pre-clearance, request approval through the StarCompliance system (StarCompliance)

before you or any Household Member places an order to buy or sell any Reportable Security. Any approval you receive expires at the end of the day it was granted; however, you may place after-hours trades in international markets until 11:59 PM local time on that day. When requesting pre-clearance, follow this process:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Request pre-clearance on the same day you want to trade, during standard US trading hours (9:30 AM to 4:00 PM ET). Be sure your pre-clearance request is accurate as to security and direction of trade.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wait for approval to be displayed before trading. If you receive approval, you may only trade that same day, and only within the scope of approval. If you do not receive approval, do not trade.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Place day orders only. Do not place good-till-canceled orders or limit orders that expire beyond the day of pre-clearance approval. You may place orders for an after-hours trading session or in foreign markets using that day's pre-clearance approval, but you must not place any order that could remain open into the next day's trading session.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**9.Hold positions in securities that are subject to pre- clearance for 60 calendar days, or be prepared to forfeit any gains. Several things to note:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You may be required to surrender any gains realized (net of commissions) through a violation of this rule.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The 60-day holding requirement is tested on a last- in-first-out basis, across all of your holdings (not just within individual accounts).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The 60-day holding requirement extends to any options or other transactions that may have the same effect as a purchase or sale, and to all Reportable Securities except Exchange Traded Funds (ETFs), Exchange Traded Notes (ETNs), Unit Investment Trusts (UITs), and open-end Affiliated Funds. Note that trading in single stock ETFs is prohibited.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Closed-end funds, including Nuveen branded or sponsored closed-end funds, are subject to the 60-day holding requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You may sell the security on the 60th day after purchase, provided you obtain pre-clearance or an approved exemption applies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You may re-purchase a security immediately after executing a sale of that same security subject to pre- clearance approval, which will trigger a new 60 calendar day holding period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You may close a position at a loss at any time provided pre-clearance approval has been obtained, or an approved exemption applies. If your pre-clearance has been denied, it is advisable that you contact the Nuveen Ethics Office if you are seeking to sell at a loss within 60 days of your purchase. Note that if there are conflicts with any other provisions of the Code, your pre- clearance denial will not be overridden.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**10.Comply with trading restrictions described in the prospectuses for all Affiliated Funds.** This includes restrictions on frequent trading in shares of any open-end Affiliated Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**11.Pre-clear any transaction in a Managed Account that involves your influence.** You must also immediately consult with the Nuveen Ethics Office to discuss whether the account in question can properly remain classified as a Managed Account.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**12.Obtain the required approvals before any transaction in a Private Placement, including PIPEs.** Participation and approval for all transactions in Private Placements advised or sub-advised by Nuveen, is facilitated by the Nuveen Employee Investment Program (NuveenEIP@nuveen.com).

For all other Private Placements, you must obtain approval for initial and subsequent commitments to invest but not sales/redemptions. Be aware that sales/ redemptions are Reportable Transactions. Approval is required even if the investment is made in a Managed Account.

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;**WHAT NEEDS TO BE PRE-CLEARED** | |
| &nbsp;&nbsp;&nbsp;**Pre-clearance required**<br>&nbsp;&nbsp;&nbsp;&nbsp;• All actively initiated trades in Reportable Securities, except those listed here under "Pre-clearance not required."<br>&nbsp;&nbsp;&nbsp;&nbsp;• Note that all closed-end funds, regardless of the underlying investments or fund structure (e.g. trust), including Nuveen branded or sponsored closed-end funds, require pre-clearance.<br>&nbsp;&nbsp;&nbsp;&nbsp;• The sale of restricted stock or employee stock options accrued during prior employment or a Household Member's employment require pre-clearance. If pre- clearance is denied, you may contact the Nuveen Ethics Office to request reconsideration.<br>&nbsp;&nbsp;&nbsp;&nbsp;• You may liquidate a position recently acquired through inheritance or a spin-off, subject to pre-clearance approval. If your pre-clearance has been denied, you may contact the Nuveen Ethics Office to seek an exemption.<br>Be aware that pre-clearance can be withdrawn even after it has been granted, and even after you have traded, if Nuveen later becomes aware of Affiliate-Advised Account or Portfolio trades whose existence would have resulted in<br>denial of pre-clearance. In these cases, you may be required to reverse a trade and/or forfeit an appropriate portion of any profit, as determined by the Nuveen Ethics Office.<br>Be aware that trades initiated by a broker to address the financial standing of an account can result in violations and will generally not be protected by the Code's "actively initiated trade" language for trades requiring pre- clearances. Examples include, but are not limited to, brokers initiating trades in margin accounts, brokers<br>initiating trades to cover account fees, and brokers initiating trades to remediate a minimum or negative cash balance<br>in an account. | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**Pre-clearance not required**<br>&nbsp;&nbsp;&nbsp;&nbsp;• Shares of any open-end mutual fund (including open-end Affiliated Funds). <br>&nbsp;&nbsp;&nbsp;&nbsp;• ETFs, ETNs, UITs (including options on ETFs and ETNs). Note that trading in single stock ETFs is prohibited.<br>&nbsp;&nbsp;&nbsp;&nbsp;• CDs and commercial paper.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Securities acquired or disposed of through actions outside your control or issued pro rata to all holders of the same class of investment, such as automatic dividend reinvestments, stock splits, mergers, spin-offs, or rights subscriptions.<br>&nbsp;&nbsp;&nbsp;&nbsp;• The automatic exercise or liquidation by an exchange of a derivative instrument upon expiration or the delivery of securities pursuant to a written option that is exercised against you, and the assignment of options.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Sales pursuant to a bona fide tender offer.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Trades made through an Automatic Investment Plan that have been disclosed to the Nuveen Ethics Office in advance.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Trades in a Managed Account (except that you must pre-clear any trades that involve your influence, any initial purchases of Private Placements, purchases in any equity IPO, and any sales or redemptions of Private<br>Placements that are branded, sponsored, advised or sub- advised by Nuveen).<br>&nbsp;&nbsp;&nbsp;&nbsp;• Foreign currencies, including futures.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Commodity instruments.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Index options and index futures.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Direct investments in cryptocurrencies.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Crypto instruments that are comprised of and invest solely in cryptocurrencies. |

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**OTHER RESTRICTIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**13.Never knowingly trade any security being traded or considered for trade by any Affiliate-Advised Account or Portfolio.** This applies to employee transactions in securities that are exempt from pre- clearance and includes equivalent or related securities.

For example, if a company's common stock is being traded, you may face restrictions on trading any of the company's debt, preferred, or foreign equivalent securities, and from trading or exercising any options based on the company's securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**14.Always prioritize client trades over personal trades.** Your fiduciary duties to the client are far more important than your personal trading, which is a privilege and not a right. Never delay or in any way alter the timing or terms of a client trade for your personal benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**15.Do not engage in trading that involves any single stock ETFs, options on single stock ETFs or single stock futures.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**16.Do not engage in uncovered short sales of individual securities.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**17.You may trade options on individual securities, subject to the 60-day holding period.** Options traded must have an expiration of at least 60 days from the date that you enter into the contract. You are not permitted to close an option at a profit within 60 days of having entered into the contract. The option contract can be closed in less than 60 days at a loss, provided pre- clearance approval has been obtained.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**18.Never participate in an investment club or similar entity.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**19.Do not engage in excessive or inappropriate trading activity. Never let personal trading interfere with your professional duties.** The Nuveen Ethics Office will monitor for potentially excessive or inappropriate trading, and notify you, your manager, and your local/designated CCO for assessment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**20.Pre-clear the sale of securities in a margin account.** Margin accounts are permitted; however, you must obtain pre-clearance when selling to meet a margin call, even if the transaction is initiated by a broker.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**21.Never purchase an IPO without advance approval.** This includes Managed Accounts. Equity IPO participation is generally prohibited but approval may be granted in special circumstances, such as when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You already have equity in the company and are offered shares.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You are a policy holder or depositor in a company that is demutualizing.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A Household Member has been offered shares as an employee.

Purchases of initial offerings of SPACs, fixed income securities, convertible securities, preferred securities, open- and closed-end funds, commodity pools, and secondary equity offerings are generally permitted subject to pre-clearance in StarCompliance.

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| | |
|:---|:---|
| &nbsp;&nbsp;&nbsp;**MATERIAL NON-PUBLIC INFORMATION** | |
| &nbsp;&nbsp;&nbsp;**What is Material Non-Public Information?**<br>Material Non-Public Information is defined as information regarding any security, securities-based derivatives or issuer of a security that is both material and non-public.<br>Information is material if either of the following are true:<br>&nbsp;&nbsp;&nbsp;&nbsp;• A reasonable investor would likely consider it important when making an investment decision.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Public release of the information would likely affect the price of a security.<br>Information is generally non-public if it has not been distributed through a widely used public medium, such as a press release or a report, filing or other periodic communication.<br>**Restrictions and requirements**<br>&nbsp;&nbsp;&nbsp;&nbsp;• Any time you think you might have, or may be about to, come into possession of Material Non-Public Information (whether in connection with your position at Nuveen or TIAA or not), alert the Nuveen Ethics Office. Alternatively, you may alert your local/designated CCO or Legal office, who in turn must promptly notify the Nuveen Ethics Office. Follow the instructions you are given.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Until you receive further instructions from the Nuveen Ethics Office, your local/designated CCO, or Legal, do not take any action in relation to the information, including | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;trading or recommending the relevant securities or communicating the information to anyone else.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Never make decisions on your own regarding potential Material Non-Public Information, including whether such information is actually Material Non-Public Information or what steps should be taken.<br>&nbsp;&nbsp;&nbsp;&nbsp;• If the Nuveen Ethics Office, your local/designated CCO and/or Legal determine that you have Material Non- Public Information:<br>–Do not buy, sell, gift, or otherwise dispose of the issuer's securities, whether on behalf of an Affiliate-Advised Account or Portfolio, yourself, or anyone else.<br>–Do not in any way recommend, encourage, or influence others to transact in the issuer's securities, even if you do not specifically disclose or reference the Material Non- Public Information.<br>–Do not communicate the Material Non-Public Information to anyone, whether inside or outside Nuveen, except in discussions with the Nuveen Ethics Office and Legal and as expressly permitted by any confidentiality agreement or supplemental policies and procedures of your business unit.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Please refer to Nuveen's Material Non-Public Information and Insider Trading Policy for detailed information. |

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**REPORTING REQUIREMENTS**

**UPON BECOMING AN EMPLOYEE**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**22.Within 10 calendar days of starting at Nuveen or TIAA, acknowledge receipt of the Code.** This includes certifying that you have read the Code, understand it, recognize that you are subject to it, have complied with all of its applicable requirements, and have submitted all Code-required reports.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**23.Within 10 calendar days of starting at Nuveen or TIAA, use StarCompliance to report all of your Reportable Accounts and holdings in Reportable Securities.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A)&nbsp;&nbsp;&nbsp;&nbsp;Report all **Reportable Accounts** using

StarCompliance within 10 calendar days of starting at Nuveen or TIAA, making sure that you include information about the broker, dealer, or bank through which the account is held and the type of account. You must also upload the most recent statement in StarCompliance for each Reportable Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B)&nbsp;&nbsp;&nbsp;&nbsp;If your account is not held with an approved broker or is not feed eligible as described in item 25 below, you must manually input an initial holding in StarCompliance for each **Reportable Security** within 10 calendar days of starting at Nuveen or TIAA. For Reportable Accounts held with an approved broker that are feed-eligible, the statement upload will fulfill your initial holdings reporting and manual entry is not required unless you wish to sell a Reportable Security prior to the establishment of the account's electronic feed in StarCompliance. For each Reportable Security, provide the security name and type, a ticker symbol or CUSIP, the number of shares or units held, and the principal amount (dollar value).

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Note the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• This information must be no older than 45 calendar days before your first day of employment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• TIAA retirement plan accounts (other than those of Household Members) are not required to be manually added to StarCompliance as they are automatically added.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• There are separate procedures for Managed Accounts, as described below in Item 27.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**24.Within 10 calendar days of starting at Nuveen or TIAA, report all current investments in Private Placements (limited offerings).** Limited offerings are Reportable Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**25.Within 30 calendar days of starting at Nuveen or TIAA, move or close any Reportable Account that is not at an approved firm.** This does not include Reportable Accounts that are commonly not feed-eligible, such as 401(k)s/403(b)s, HSAs, ESPP/ESOPs, Pension/Annuity accounts, or 529 plans. See the definition of "Reportable Account" above and contact the Nuveen Ethics Office if you are unsure whether your account must be held with an approved firm. The list of approved firms is maintained by the Nuveen Ethics Office and is available in the document library of StarCompliance.

Under very limited circumstances, it may be possible to obtain a waiver to keep a Reportable Account at a non- approved firm. Examples include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An account owned by a Household Member who works at another financial firm with comparable restrictions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An account that holds securities that cannot be transferred.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• An account that cannot be moved because of a trust agreement.

To apply for an exception, complete the Approved Broker Exception Request Form in StarCompliance.. For any account granted an exception, you are required to upload statements for the account in StarCompliance at least quarterly for the entire reporting period and manually enter all Reportable Transactions in StarCompliance within 5 days of execution.

Consultants, temporary workers, and employees based outside of the US are generally not required to move or close Reportable Accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**26.Within 30 calendar days of starting at Nuveen or TIAA, seek approval to liquidate any securities held prior to starting at Nuveen or TIAA that you do not wish to continue to hold.** If you wish to liquidate securities that you held prior to joining Nuveen or TIAA, seek approval by contacting the Nuveen Ethics Office within 30 calendar days of starting at Nuveen or TIAA. If you do not liquidate securities during this time, you will generally forfeit this special consideration for liquidation and your trade requests to sell shares in these securities may be denied in the future.

**WHEN OPENING ANY MANAGED ACCOUNT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**27.Get pre-approval for any new Managed Account before any trading activity commences** and report the account within 10 calendar days of the date you or a Household Member opens the account or an account becomes a Reportable Account through marriage, cohabitation, divorce, death, or another event. Using the appropriate form which may be accessed in StarCompliance, provide representations that support the classification of the account as a Managed Account. For an account to be classified as a Managed Account, the account owner must have no direct or indirect influence or control over the securities in the account. The form must be signed by the account's broker or investment manager and by all account owners. The broker or investment manager may provide a Managed Account agreement or letter which substantiates the account as managed in lieu of signing the form. You may be asked periodically to confirm these representations or submit an updated form to confirm such.

Note that upon request, you are also responsible for providing duplicate statements for the Managed Account to the Nuveen Ethics Office.

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**WHEN OPENING ANY NEW REPORTABLE ACCOUNT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**28.Report any new Reportable Account,** including Managed Accounts. Do this in StarCompliance within 10 calendar days of the date you or a Household member opens the account or an account becomes a Reportable Account through marriage, cohabitation, divorce, death, or another event.

**EVERY QUARTER**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**29.Within 30 calendar days of the end of each calendar quarter, verify in StarCompliance that all Reportable Transactions made during that quarter have been reported.** StarCompliance will display all transactions of yours for which it has received notice (except transactions in your TIAA pension and retirement plan accounts, which you are not required to report because the firm accesses this information directly). For any other Reportable Transactions not displayed, or displayed inaccurately, you are responsible for making any necessary revisions in StarCompliance prior to completing your certification.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**30.For each Reportable Transaction, you must provide, as applicable, the transaction date, security name and type, ticker symbol or CUSIP, interest rate (coupon) and maturity date, number of shares, price at which the transaction was effected, principal amount (dollar value), the nature of the trade (buy or sell), and the name of the broker, dealer, or bank that effected the transaction.** It is very important that you carefully review and verify the transactions and related details displayed in StarCompliance, checking for accuracy and completeness. Once again, if you find any errors or omissions, correct or add to your list of transactions in StarCompliance.

**EVERY YEAR**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**31.Within 45 calendar days of the end of each calendar year, acknowledge receipt of the most recent version of the Code and certify in StarCompliance as to your annual Reportable Security holdings and Reportable Accounts.**

The reporting must contain the information described in item 23 above and include your certification that you have reported all Reportable Accounts, and all holdings in Reportable Securities at year end. If any of your Reportable Accounts and/or holdings in Reportable Securities are not displayed in StarCompliance or are displayed inaccurately, you are responsible for making any necessary revisions in StarCompliance to complete your certification.

In addition, you must affirm each year through StarCompliance that each Managed Account is properly classified as a Managed Account, for yourself and on behalf of any Household Member. This affirmation does not require broker or investment manager involvement.

You also must acknowledge any amendments to the Code that occur during the course of the year.

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| |
|:---|
| &nbsp;&nbsp;&nbsp;**ADDITIONAL RULES FOR SECTION 16 PERSONS** |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Pre-clear transactions in all closed-end funds through StarCompliance. Any requests involving Nuveen closed- end funds will be reviewed by Legal.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Pre-clear buy/sell transactions involving any Nuveen closed-end funds within your Managed Account(s).<br>&nbsp;&nbsp;&nbsp;&nbsp;• When selling for a gain any securities you buy that are issued by the entity of which you are a Section 16 Person, make sure it is at least 6 months after your most recent purchase of that security. This rule extends to any options or other transactions that may have the same effect as a purchase or sale, and is tested on a last-in- first-out basis. You may be required to surrender any gains realized through a violation of this rule. Note that for any fund of which you are a Section 16 Person, no exception from pre-clearance is available.<br>&nbsp;&nbsp;&nbsp;&nbsp;• Promptly email to the appropriate contact in Legal the details of all executed transactions in Nuveen closed-end funds of which you are a Section 16 Person.<br>&nbsp;&nbsp;&nbsp;&nbsp;• See the Nuveen Funds Section 16 Policy and Procedures for additional information.<br>If you are unsure whether you are a Section 16 Person, contact Legal or the Nuveen Ethics Office. |

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| |
|:---|
| &nbsp;&nbsp;&nbsp;**CODE ADMINISTRATION** |
| &nbsp;&nbsp;&nbsp;**Training**<br>You will be required to participate in training on the Code when joining Nuveen or TIAA as well as periodically during the time you are subject to the Code.<br>**Exceptions**<br>The Code exists to prevent violations of law. The Nuveen Ethics Office may, under certain circumstances, grant waivers from a Code requirement. No waivers or exceptions that would violate any law will be granted.<br>**Monitoring**<br>The Nuveen Ethics Office is responsible for monitoring accounts, transactions, holdings and certifications for any violations of this Code.<br>**Consequences of violation**<br>Any individual who violates the Code is subject to penalty. Penalties could include, among other possibilities, a written warning, restriction of trading privileges, unwinding or reversing trades, disgorgement of trading profits, fines, and suspension or termination of employment.<br>**Applicable rules**<br>The Code has been adopted in recognition of Nuveen's fiduciary obligations to clients and in accordance with various provisions of Rule 204A-1 under the Investment Advisers Act of 1940 and Rule 17j-1 under the Investment Company Act of 1940. This Code is also adopted by the Affiliated Funds advised by Nuveen Fund Advisors, LLC, TIAA-CREF Investment Management, LLC and Teachers Advisors, LLC under Rule 17j-1.<br>Some elements of the Code also constitute part of Nuveen's response to Financial Industry Regulatory Authority (FINRA) requirements that apply to registered personnel of Nuveen Securities, LLC. |

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## Ex-99.(P)(20)

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| |
|:---|
| ![image_0.jpg](image_0.jpg) |
| PineBridge Code of Ethics |
| The information contained herein is the property of PineBridge Investments and may not be copied, used or disclosed in whole or in part, stored in a retrieval system or transmitted in any form or by any means (electronic, mechanical, reprographic, recording or otherwise) without the prior written permission of PineBridge Investments. |

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Effective: January 2025

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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Definitions and Abbreviations&nbsp;&nbsp;&nbsp;&nbsp;3

I. Introduction&nbsp;&nbsp;&nbsp;&nbsp;6

II. Fiduciary Duties&nbsp;&nbsp;&nbsp;&nbsp;9

III. Code of Conduct&nbsp;&nbsp;&nbsp;&nbsp;11

IV. Insider Trading&nbsp;&nbsp;&nbsp;&nbsp;16

V. Personal Securities Transactions&nbsp;&nbsp;&nbsp;&nbsp;21

VI. Outside Business Activities&nbsp;&nbsp;&nbsp;&nbsp;31

VII. Gifts & Entertainment&nbsp;&nbsp;&nbsp;&nbsp;34

VIII. Political & Charitable Contributions&nbsp;&nbsp;&nbsp;&nbsp;37

Appendix A: Exempt Transactions&nbsp;&nbsp;&nbsp;&nbsp;39

Appendix B: Acknowledgement & Waiver Letter&nbsp;&nbsp;&nbsp;&nbsp;40

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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Definitions and Abbreviations

**Access Person**: For the purpose of this Code, all employees and Non-Executive Directors of PineBridge are considered Access Persons. Access Persons may also include consultants, temporary workers, and interns, (each a "Contingent Worker") who have direct or indirect access to sensitive information. Sensitive information includes, but is not limited to, client or trade (PineBridge or personal) information, non-public information per the Insider Trading Policy set out within this Code, litigation-related and any information that the Contingent Worker's direct supervisor reasonably believes should be determined to be sensitive. It is the responsibility of the employee with direct supervision of a Contingent Worker to (1) determine whether the Contingent Worker has direct or indirect access to sensitive information; and (2) notify the Compliance Department and Human Resources upon the hire and termination of a Contingent Worker.

*Note: For purposes of this Code, a prohibition or requirement applicable to any Access Person applies also to transactions in Securities or Related Securities for any account for which the Access Person or a Household Member has control and/or Beneficial Ownership.*

**Beneficial Ownership**: A direct or indirect Pecuniary Interest in the securities or shares that an Access Person has. An Access Person is presumed to have a Beneficial Ownership interest in any Security held, individually or jointly, by the Access Person and/or a Household Member.

*Note: Access Persons should consult the Compliance Department if in doubt as to whether he/she has Beneficial Ownership of Securities*.

**Client**: An entity that has signed an agreement with PineBridge for the provision of discretionary or non-discretionary investment management services.

**Closed-End Fund**: Type of fund that has a fixed number of shares usually listed on a major stock exchange. Unlike open-ended mutual funds, closed-end funds do not issue and redeem shares on a continuous basis.

**Consultant**: An individual or organization providing professional services to PineBridge Investments for a fee.

**Cryptocurrency:** A digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. Examples include Bitcoin, Ethereum, Ripple, NEO and Litecoin.

**De Minimis Amount**: Gifts from any single individual representing an organization that in aggregate do not exceed $50 in value in a calendar month.

**Disinterested Director/Non-Employee Investment Committee Personnel**: A director of any Fund managed by PineBridge who is not in the position to influence the operations of a Client. Disinterested Directors are not subject to the requirements of this Code.

**Entertainment**: An event where a business contact, counterparty or vendor is present with the employee and where business matters can be discussed.

**Exchange Traded Funds (ETF)**: A fund that typically tracks an index, but can be traded like a stock. An ETF holds assets such as stocks, commodities or bonds, and trades close to its net asset value over the course of a trading day. Because ETFs are traded on stock exchanges, they can be bought and sold at any time during the day (unlike most mutual funds).

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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**Fund**: Registered open-end and closed-end investment companies or commingled vehicles advised or sub-advised by PineBridge.

**Gift**: Anything of value that is received and/or offered from/to a business contact, vendor, counterparty or regulatory body.

**Household Member**: A member of an Access Person's family and/or legal dependent that shares the same residence as the Access Person.

**Investment Personnel**: Any employee entrusted with the direct responsibility and authority, either alone or as part of a co-manager team or group, to make investment decisions affecting a Client's investment plans and interests, as well as other personnel, such as research analysts, trading personnel, individuals who provide information or advice to portfolio managers and those individuals who execute portfolio manager decisions.

**Manager**: Any employee who has one or more other employees who report to him or her.

**Non-Executive Director:** Any person appointed as a Non-Executive Director of PineBridge Investments, L.P. or a member company.

**Pecuniary Interest**: The opportunity to profit directly or indirectly or share in any profit derived from a transaction in a security.

**PineBridge or the "Firm"**: Member company of PineBridge Investments, L.P.

**Private Placement**: The sale of a bond or other security directly to a limited number of investors in a private offering (e.g. hedge fund and private equity fund).

**Related Security**: Any instrument related in value to that Security, including, but not limited to, any option or warrant to purchase or sell that Security, and any Security convertible into or exchangeable for the Security.

**Robo-Adviser:** A type of managed account or financial adviser that provides financial advice or investment management, primarily online, with moderate to minimal human intervention. Robo-Advisors generally use algorithms to provide an automated portfolio management service based on a client's risk tolerance and time horizon. The account holder at a qualifying Robo-Adviser does not generally have the ability to direct the purchase or sale of any individual investments within the account. Typically, investment options will be limited to ETFs, mutual funds or other Exempt Securities. Examples include Betterment, Wealthfront, Acorns, MarketRiders, Creditease's Toumi RA, and Algebra.

**Securities**: Any REIT, note, stock (including ADRs), treasury stock, security future, bond, debenture, evidence of indebtedness, certificate of interest or participation in any profit-sharing agreement, collateral-trust certificate, pre-organization certificate or subscription, transferable share, investment contract, voting-trust certificate, futures contracts and options traded on a commodities exchange, including: currency futures; fractional undivided interest in oil, gas, or other mineral rights; any put, call, straddle, option or privilege on any security or on any group or index of securities (including any interest therein or based on the value thereof); or any put, call, straddle, option or privilege entered into on a national securities exchange relating to foreign currency or; in general, any interest or instrument commonly known as a security or any certificate of interest or participation in, temporary or interim certificate for, receipt for, guarantee of, or warrant or right to subscribe to or purchase, any security.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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*For the purposes of the Code, please note the following:*

-*Commodities <u>are not</u> considered Securities.* 

-*Futures and options on any group or index of Securities <u>are</u> considered Securities.*

**StarCompliance**: A web based application used by Access Persons to submit all necessary forms/reports under the requirements of this Code. Access Persons must, whenever possible, use StarCompliance to comply with the reporting requirements of this Code. However, in cases where an Access Person does not have access to the system, the Access Person must receive approval from the Compliance Department prior to submitting any required forms/reports manually.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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I. Introduction

***A. Purpose***

PineBridge believes that individual investment activities by its officers and employees should not be prohibited or discouraged. Nonetheless, the nature of the Firm's fiduciary obligations necessarily requires some restrictions on the investment activities of Access Persons and their Household Members.

Access Persons are agents of PineBridge. In managing assets for the Firm's Clients, Access Persons have a fiduciary responsibility to treat the Firm's Clients fairly. This duty requires a course of conduct, consistent with other statutory obligations, that seeks to be prudent and in the Client's best interest.

This Code of Ethics (the "Code") is intended to address three fundamental principles that must guide the personal investment activities of Access Persons in light of his or her fiduciary duties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.Place the interests of the Firm's Clients first.** As fiduciaries, Access Persons must avoid serving personal interests ahead of the interests of the Firm's Clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.Avoid taking inappropriate advantage of one's position as an Access Person.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3.Conduct personal investing activities in such a way as to avoid even the appearance of a conflict of interest with investment activities undertaken for the Firm's Clients.**

This Code, along with other PineBridge policies and procedures, is designed to be consistent with the ethical and professional principals of conduct as identified in the CFA Institute's Asset Manager Code of Professional Conduct for which the Firm has claimed compliance.

This Code has been adopted pursuant to applicable regulations, which require that every registered investment company and registered investment adviser adopt a code of ethics regarding personal investment activities of persons having access to information about portfolio transactions of the Firm's Clients. In addition, investment advisers must keep certain records regarding personal investment activities of Access Persons and make them available for regulatory inspection.

***B. Compliance with this Code***

Compliance with this Code and the applicable securities laws is a condition of employment or contract for services. A violation of this Code may be cause for disciplinary action by PineBridge, including termination of employment or service contract. Other disciplinary actions may include exceptions, warnings, disgorgement of trading profits, and periods of "probation" during which all personal investment activities (except for specifically approved liquidation of current positions) are prohibited.

Meeting our responsibilities enables our business to succeed and grow, today and in the future. Each of us is expected to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Understand and act according to this Code and the Firm's policies, applicable laws and regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Seek guidance from management, compliance personnel or the Firm's legal counsel when you have questions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Promptly report concerns about possible violations of this Code or applicable laws and regulations to management.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Participate in training to keep up-to-date on current standards and expectations. All Access Persons, with the exception of Non-Executive Directors, will receive an electronic mail requiring completion of Code of Ethics training.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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No reason, including the desire to meet business goals, can ever be an excuse for violating laws or regulations.

**Manager/Supervisor Responsibility:** It is the responsibility of the employee with direct supervision of a Contingent Worker to: (1) determine whether the Contingent Worker has direct or indirect access to sensitive information; and (2) to notify the Compliance Department and Human Resources upon the hire and termination of a Contingent Worker.

Each Manager is expected to fulfill the following additional responsibilities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Serve as a role model for the highest ethical standards and create and sustain a culture of trust, honesty, integrity and respect.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Be a resource for Access Persons. Ensure that they are aware of, understand, and know how to apply this Code and the Firm's policies, applicable laws and regulations in their daily work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Seek assistance from other Managers or the Firm's legal counsel, compliance officers or human resource professionals when unsure of the best response to any given situation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Be proactive. Take reasonable actions to prevent and identify misconduct. Report situations that might impact the ability of Access Persons to act ethically on behalf of PineBridge.

Any transactions that appear to indicate a pattern of abuse of an Access Person's fiduciary duties to the Firm's Clients will be subject to scrutiny regardless of technical compliance with the Code.

**This Code shall be superseded by local regulatory practices as applicable. Each regional compliance officer shall communicate such exceptions to all Access Persons in their respective region.**

**Access Persons are required to report any violations of this Code to the Chief Compliance Officer (or his or her designee). Most concerns can be resolved by talking to and working with management, Human Resources and/or Compliance. If further review and inquiry are required, the Chief Compliance Officer and/or other applicable parties will promptly investigate any reported items. Access Persons will not face retaliation if he/she reports violations of this Code. Retaliation itself constitutes a violation of this Code.**

**In addition, Access Persons may ask questions, raise concerns or report instances of non-compliance with this Code, PineBridge policies or applicable laws and regulations by contacting their regional compliance officer.**

***Note: To the extent that Access Persons are away from work on extended leave and will be accessing the Firm's email or computer systems, the Access Person is required to comply with the requirements outlined in the Code. Special arrangements regarding submission of pre-clearance requests should be cleared with the Compliance Department prior to the commencement of leave.***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.Certificate of Compliance**

Access Persons will receive a copy of this Code and any amendments as they are made. New hires are required to certify that they have received a copy of the Code and that they understand its contents. All Access Persons are required to certify their receipt and understanding of amendments to the Code. In addition, all Access Persons other than Non-Executive Directors, must make annual certifications within 30 days of the calendar year-end using StarCompliance.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.Code Violations**

For the purpose of this policy, violations may include, but are not limited to, the failure to: (a) pre-clear a trade, (b) file a certification within established timeframes, (c) disclose a brokerage account, (d) complete any required training in the specified time period and (e) report a gift, entertainment, political contribution, or outside business activity in accordance with the Code. Violators of the Code may be reported to senior management and the Board of PineBridge Investments, L.P. and/or its subsidiaries. The Global Chief Compliance Officer and regional compliance officers have the ability to consider the application of the Code on a case-by-case basis including the ability to grant waivers, exceptions, or warnings as deemed appropriate, on the assumption that there is sufficient reason and any instances are appropriately documented.

***•* First Violation** – Following assessment of all relevant facts, the Compliance Department may issue a violation memo to the Access Person, with a copy sent to his or her direct supervisor and/or the senior manager of his or her business group. If deemed sufficiently serious, Human Resources may be consulted.

***•* Second Violation** – The Access Person shall receive a disciplinary memo from the Compliance Department, with a copy sent to his or her direct supervisor, the senior manager of his or her business group, and the Global Chief Compliance Officer. Using their discretion, Compliance may choose to include the Regional Head of Human Resources and the Regional Chief Executive Officer ("CEO"). The Access Person will be required to meet with a Compliance Officer to discuss the importance of complying with this policy and may be required to complete additional training. An offending Access Person may be excluded from the bonus pool for a second violation at the discretion of PineBridge senior management.

***•* Third Violation** – In addition to the disciplinary actions applicable to second violations, the Access Person shall be subject to disciplinary and/or monetary sanctions including but not limited to the following: suspension of trading privileges, disgorgement of trading profits and/or termination of employment or service contract. The sanction shall be at the discretion of the senior manager of the Access Person's business group, the Global Chief Compliance Officer and the Firm's CEO.

Please note that any violation of the Insider Trading Policy included in this Code may lead to immediate termination.

Compliance will retire a Code of Ethics violation from an Access Person's record following two (2) years of activity without incurring any new violations.

Certain countries may have procedures for handling violations that differ from those discussed above. In those countries, PineBridge will follow the local procedures, which may be more stringent than those included in this Code.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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II. Fiduciary Duties

***A. Fraudulent Practices***

If an Access Person purchases or sells, directly or indirectly, a Security or commodity, which is held or is to be acquired by a Client, the Access Person may not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) employ any device, scheme or artifice to defraud a Client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) make any untrue statement of a material fact or omit to state to a Client a material fact which makes the statement misleading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) engage in any act, practice or course of business which would operate as a fraud or deceit upon a Client; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) engage in any manipulative practice with respect to such Client.

***B. Conflicts of Interest***

Your position at PineBridge cannot be used for inappropriate personal gain or advantage to you or a member of your family. Any situation that creates, or even appears to create, a conflict of interest between personal interests and the interests of PineBridge and/or a Client must be avoided in the first instance or if avoidance is not possible the senior manager of the Access Person's business group and relevant compliance officer need to determine what steps should be taken to manage the conflict of interest and initiate any disclosures, for example to clients, which may be deemed necessary. Potential conflicts of interest should be reported to management, who will work with the compliance officer assigned to your business to determine how best to handle the situation.

**Corporate Opportunities**

Access Persons are prohibited from taking for themselves or directing to a third party a business opportunity that is discovered through the use of PineBridge corporate property, information or position, unless PineBridge has already been offered and declined the opportunity. Access Persons are prohibited from using corporate property, information or position for personal gain to the exclusion of PineBridge and from competing with PineBridge.

**Personal Relationships**

Immediate family members, members of your household and individuals with whom you have a close personal relationship should never improperly influence business decisions.

***C. Dispensing Information***

Access Persons must obtain prior written approval from the Compliance Department before dispensing any reports, recommendations or other information concerning securities holdings or securities transactions for Clients to anyone, other than the Clients themselves. No approval is needed if such persons have a business need for this information as a part of their normal duties and activities. Access Persons may disclose this information if:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) there is a public report containing the same information;

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) the information is dispensed in accordance with compliance procedures established to prevent conflicts of interest between PineBridge and a Client; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) the information is reported to directors or trustees of a Client or to an administrator or other fiduciary of a Client and if these persons receive the information in the course of carrying out their fiduciary duties.

*Note: The above does not apply to certain information that is required to be dispensed by registered investment companies.*

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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III. Code of Conduct

This section of the Code discusses general standards of conduct that must be followed. Any Access Person who has knowledge of, or in good faith suspects, a violation of any of these laws, regulations or policies must report them promptly to the compliance officer assigned to your business.

***A. Access Person Privacy***

PineBridge respects the personal information and property of Access Persons. Access to personal information or Access Persons property is only authorized for appropriate personnel with a legitimate reason to access such information or property. Nonetheless, from time to time, PineBridge may access and monitor Access Person internet usage and communications. Subject to local laws, Access Persons shall have no expectation of privacy with regard to workplace communication or use of PineBridge information technology resources.

***B. Customer Privacy and Data Security***

PineBridge Clients expect us to carefully handle and safeguard the business and personal information they share with us. Access Persons must never compromise a PineBridge Client's trust by disclosing private information other than to those with a legitimate business need to know.

The classification of information as personal information or business data may differ by country. Access Persons who handle customer information are responsible for knowing and complying with applicable information privacy and information security laws. In all cases Access Persons must maintain appropriate physical, administrative and technical safeguards for personal information and business data.

Access Persons must be especially vigilant in following laws, regulations and policies when transferring personal information and business data across country borders. Access persons should raise any questions about information privacy and/or data security they have to their manager, Legal, or Compliance.

***C. Relations with Business Partners***

The Firm's business partners<sup>1</sup> serve as extensions of PineBridge. When working on behalf of PineBridge, business partners are expected to adhere to the spirit of the Code, and to any applicable contractual provisions. Access Persons must ensure that business partners do not exploit their relationship with PineBridge or use the Firm's name in connection with any fraudulent, unethical or dishonest transaction.

***D. Fair Dealing***

PineBridge seeks competitive advantages only through legal and ethical business practices. Access Persons must conduct business in a fair manner with customers, service providers, suppliers and competitors. Access Persons must not disparage competitors or their products and services. Improperly taking advantage of anyone through manipulation, concealment, abuse of privileged information, intentional misrepresentation of facts or any other unfair practice is not tolerated. (Please also refer to the Firm's Global Anti-Corruption Policy for additional information.)

<sup>1</sup> Parties such as agents and consultants, who represent PineBridge to the public.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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***E. Antitrust and Fair Competition***

PineBridge competes vigorously and fairly around the world. PineBridge seeks to maintain and grow its business through superior products and services, not through improper or anti-competitive practices. PineBridge strives to understand and comply with global competition and anti-trust laws. These laws are complex. Access Persons who are unsure of appropriate practices should consult with the compliance officer assigned to their business for additional information and clarification.

The following guidelines will help ensure fair business conduct and appropriate competition.

Do:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Obtain information about the Firm's competitors only from lawful and appropriate sources.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Comment on competitors or their products or services based only on factual information.

Do not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Agree formally or informally with a competitor to fix prices or other terms of sale, rig bids, set production or sales levels, or allocate customers, markets, or territories.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Discuss any of the following with a competitor: prices, bids, customer sales, commissions, terms of sale, profits, margins, costs, production, inventories, supplies, marketing plans or other competitively sensitive information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Attend meetings with competitors at which competitively sensitive information, including the subjects mentioned in the above two bullets, is discussed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Agree with others outside of PineBridge as to which suppliers or customers to do business with.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Make unsubstantiated or untruthful comparisons to competitors or their products or services.

***F. Safeguarding PineBridge Resources***

To best serve our customers and shareholders, it is vital that Access Persons demonstrate proper care and use of our resources.

**&nbsp;&nbsp;&nbsp;&nbsp;1. Physical Property**

The Firm's property, including real estate, equipment and supplies, must be protected from misuse, damage, theft or other improper handling.

Generally, the Firm's property is meant solely for the Firm's business, though incidental personal use, such as local telephone calls, appropriately limited personal use of email, minor photocopying or computer use is permitted.

**&nbsp;&nbsp;&nbsp;&nbsp;2. Intellectual Property** 

The Firm's intellectual property consists of any business ideas or information that PineBridge owns, such as unique products and methodologies. PineBridge protects its intellectual property through patents, trademarks and copyrights. Access Persons are required to safeguard the confidential information and trade secrets belonging to PineBridge and its business partners.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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**&nbsp;&nbsp;&nbsp;&nbsp;3. Funds**

The Firm's funds are to be used responsibly and solely for the Firm's business. Corporate credit cards issued to employees for payment of business expenses may not be used for personal expenses. Access Persons have a responsibility to safeguard PineBridge funds from misuse or theft and ensure that PineBridge receives good value when spending the Firm's funds. You should only seek reimbursement for actual, reasonable and authorized business expenses.

**&nbsp;&nbsp;&nbsp;&nbsp;4. Information Technology Systems**

The Firm's information technology systems include computers, networking resources, email systems, telephone, voice systems and other computer-processed information. Each of us has a responsibility to protect these systems and the data resident on these systems, from improper access, damage or theft.

Subject to applicable local laws, PineBridge may have the right to review all electronic mail and other electronic information to determine compliance with this Code, laws, regulations or the Firm's policy. Electronic information in this context includes without limitation, emails, instant messages, and voicemails sent or received from the Firm's computer, Blackberry or other handheld electronic device, or work station or to/from a PineBridge email address. All may be subject to review.

The electronic mail and messaging systems are the Firm's property and are intended for business purposes. Occasional, incidental, appropriate personal use of these systems may be permitted if the use does not interfere with any employee's work performance, have undue impact on the operation of the email system, or violate any other PineBridge policy, guideline, or standard.

Email messages and any other communications sent or received using the Firm's information technology systems are not to be used to create, store, or transmit information that is hostile, malicious, unlawful, sexually explicit, discriminatory, harassing, profane, abusive or derogatory. These systems also are not to be used to intentionally access web sites, which contain illegal, sexually explicit or discriminatory content.

***G. Money Laundering Prevention***

PineBridge is committed to meeting its responsibilities to help prevent money laundering and terrorist financing. These responsibilities generally include identifying clients, monitoring client activity and reporting suspicious or unusual activity consistent with applicable laws. Access Persons are required to familiarize themselves with and abide by anti-money laundering programs established by PineBridge and its business units. Suspicious activity reporting requirements are time sensitive. Access Persons should contact their manager or the compliance officer responsible for money laundering prevention as soon as they have a concern that an activity may be unusual or suspicious. (Please also refer to the Firm's anti-money laundering policies for additional information.)

***H. Economic Sanctions***

In compliance with U.S. and other applicable economic sanctions programs, Access Persons are prohibited from conducting business with or benefiting designated governments, individuals and entities (such as suspected terrorists and narcotics traffickers), as well as individuals and entities that are located in, have certain dealings with or are nationals or agents of particular countries. To determine if a government, individual or entity is subject to these prohibitions, consult with a member of the Compliance Department. (Please also refer to the Firm's Global Economic Sanctions Policy for additional information.)

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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***I. Communicating with Regulators and Other Government Officials***

Inquiries from regulators, outside the normal course of the Firm's regulatory relationships, must be reported immediately to the regional compliance officer before a response is made. Financial reporting related inquiries may be responded to by authorized members of the Finance Department. Responses to regulators must contain complete, factual and accurate information. During a regulatory inspection or examination, documents must never be concealed, destroyed or altered, nor should lies or misleading statements be made to regulators. Requests from auditors are subject to the same standards.

***J. Government Business***

Doing business with governments may present different risks than business in the commercial marketplace. Laws relating to contracts with international, federal, state and local agencies generally are more stringent and complex. Certain conduct and practices that might be acceptable in the commercial setting are prohibited in the public sector. You should therefore consult with management, or the compliance officer assigned to your business before you make any decision about doing business with government entities.

***K. Former Government Officials***

PineBridge is committed to compliance with all laws and regulations applicable to any Access Person who has previously worked in government. Many jurisdictions have laws and regulations in place that are designed to prohibit former government officials from taking improper advantage of his or her previous position. Any Access Person who has served as a government official, in any capacity, must be aware of and comply with all laws and regulations applicable to former government officials.

***L. Anti-corruption and Bribery***

PineBridge is committed to compliance with all applicable laws and regulations designed to prevent violations of the Foreign Corrupt Practices Act ("FCPA") and other U.S. and international anti-bribery laws.

Access Persons must never use improper means to influence another's business judgment. No PineBridge employee, agent, or independent contractor may provide bribes or other improper benefits, financial or otherwise, to another person in order to obtain or retain business, bring about the improper performance of a relevant function or activity, or an unfair advantage in any business interaction that involves PineBridge, our customers, or employees. Applicable laws, regulations and government agencies define improper benefits very broadly and continue to expand the definition (e.g. the hiring of children of foreign government officials). Payments or promises to pay something of value to obtain or retain business or otherwise secure an improper advantage must never be made to a government official or employee, or other public officials who hold legislative, administrative or judicial positions. Government officials may include senior management of enterprises that are controlled or owned in whole or in part by a government.

Anti-corruption laws also prohibit the creation of inaccurate or false books and records and they require companies to develop and maintain adequate controls regarding corporate assets and accounting. All PineBridge employees and officers are required to familiarize themselves with and comply with all applicable PineBridge policies and procedures. (Please also refer to the Firm's Global Anti-Corruption Policy for additional information.)

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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***M. Whistleblower Protection Policy***

PineBridge must adhere to all applicable laws and regulations. The support of all Access Persons is needed to assist PineBridge in achieving compliance with applicable laws and regulations. If any Access Person reasonably believes that a policy, practice, or activity of PineBridge, or of another individual or entity with which PineBridge has a business relationship is in violation of an applicable law or regulation, a report must be filed by that Access Person with the Compliance Department. PineBridge will seek to protect the identity of the individuals making the report and Access Persons may remain anonymous. Access Persons may submit such reports via the PineBridge Speak Up Program, which offers both phone and web reporting methods. The PineBridge Speak Up Program is available on the PineBridge Intranet homepage here (Source > Employee > PineBridge Speak Up Program).

A report submitted through the PineBridge Speak Up Program will be reviewed by the Firm's Global Chief Compliance Officer ("CCO"). The Global CCO is responsible for conducting a review or investigation of the report. The Global CCO may utilize all resources available to him in conducting the review or investigation including consultation with the General Counsel or another member of the Firm's Legal Department, or if deemed necessary, retain independent outside advisors or consultants.

PineBridge will not retaliate against an Access Person who, in good faith and with reasonable belief, has made a report with the Compliance Department or lawfully provided information to or assisted the Securities Exchange Commission ("SEC") or any other relevant regulator concerning some practice of PineBridge, or of another individual or entity with whom PineBridge has a business relationship, on the basis of a reasonable belief that the practice is in violation of an applicable law or regulatory requirement. Although internal reporting is encouraged, no one may take any action to impede an individual from communicating with the SEC or other regulatory body about a possible securities law violation. In addition, certain individuals reporting such practices (subject to restrictions and requirements) may be eligible for a reward. For further information, please contact the Compliance Department.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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IV. Insider Trading

Insider trading refers to the buying and selling of a security, in breach of a fiduciary duty or other relationship of trust and confidence, while in possession of material, non-public information about the security. Please refer to the PineBridge Global Information Barriers Compliance Policy for a more detailed description of the Firm's Insider Trading Policy.Insider trading laws generally prohibit:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)Trading by an insider, while in possession of material, non-public information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)Trading by a non-insider, while in possession of material, non-public information, where the information was disclosed to the non-insider in violation of an insider's duty to keep it confidential; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)Communicating material, non-public information to others in breach of a fiduciary duty.

***A. Material Information***

Material information generally is information that an investor would consider important in making his or her investment decision or information that is reasonably certain to have a substantial effect on the price of a company's securities. Material information does not have to relate directly to a company's business.

Information is considered material if it relates to matters such as:

&nbsp;&nbsp;&nbsp;&nbsp;(1) dividend or earnings expectations;

&nbsp;&nbsp;&nbsp;&nbsp;(2) write-downs or write-offs of assets;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) proposals or agreements involving a joint venture, merger, acquisition, divestiture or leveraged buy-out;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4) criminal indictments, civil litigation or government investigations;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5) substantial changes in accounting methods;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6) major litigation developments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7) bankruptcy or insolvency; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8) public offerings or private sales of debt or equity securities.

*Note: The above list of examples is non-exhaustive. Please contact the Legal or Compliance Department with any questions regarding the materiality of information.*

Information provided by a company can be material because of its expected effect on a particular class of the company's securities, all of the company's securities, the securities of another company or the securities of several companies. This policy applies to all types of securities, as well as any option related to that security.

***B. Non-public Information***

Non-public information is information that has not generally been made available to investors. Information received in circumstances indicating that it is not yet in general circulation or where the recipient knows or should know that the information could only have been provided by an insider is also considered non-public information.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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For non-public information to become public, it must be disseminated through recognized channels of distribution designed to reach the securities marketplace. Once the information has been distributed, it is no longer considered non-public. Disclosure in a national business and financial wire service (e.g., Dow Jones, Bloomberg or Reuters), a national news service (AP), a national newspaper (e.g., *The Wall Street Journal* or *The New York Times*), or a publicly disseminated disclosure document (a proxy statement or prospectus) constitutes public information.

*Note: Generally, information is considered non-public until 24 hours after public disclosure.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Information Provided in Confidence**

Occasionally, one or more Access Persons may become temporary insiders because of a fiduciary (a person or entity to whom property is entrusted for the benefit of another) or commercial relationship.

As an insider, PineBridge has a fiduciary responsibility not to breach the trust of the party that has communicated the material, non-public information by misusing that information. The fiduciary duty arises because PineBridge has entered or has been invited to enter into a commercial relationship with the client or prospective client and has been given access to confidential information solely for the corporate purposes of that client. The obligation remains regardless of whether PineBridge ultimately participates in the transaction.

**&nbsp;&nbsp;&nbsp;&nbsp;2. Information Disclosed in Breach of Duty**

Even where there is no expectation of confidentiality, a person may become an insider upon receiving material, non-public information in circumstances where (i) a person knows, or should know, that a corporate insider or tipper is disclosing information in breach of the fiduciary duty he/she owes the corporation and its shareholders and (ii) the corporate insider or tipper is receiving a personal benefit, directly or indirectly, from the disclosure of the information. A prohibited personal benefit could include a present or future monetary gain, a benefit to one's reputation, an expectation of quid pro quo from the recipient or the recipient's employer by a gift of the inside information. The definition of a prohibited personal benefit continues to be litigated in the courts and the regulators seek to expand the definition.

A person may, depending on the circumstances, also become an insider when he/she obtains material, non-public information by happenstance. This includes information derived from social institutions, business gatherings, overheard conversations, misplaced documents and tips from insiders or other third parties.

***C. Guidance on Insider Trading***

Any Access Person who is uncertain as to whether the information he/she possesses is material, non-public information should take the following steps immediately:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) Report the matter to the Compliance Department;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) Refrain from purchasing or selling the securities on behalf of oneself or others, including Clients managed by the Access Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3) Refrain from communicating the information inside or outside of PineBridge, other than to the Compliance Department.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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The Compliance Department will instruct the Access Person on how to proceed.

***D. Penalties for Insider Trading***

The penalties for insider trading are severe, both for individuals involved in such unlawful conduct and their employers. A person can be subject to civil and/or criminal penalties even if he/she does not benefit personally from the violation.

***E. Procedures to Implement the Policy against Insider Trading***

**&nbsp;&nbsp;&nbsp;&nbsp;1. Trading Restrictions and Reporting Requirements**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) No Access Person who possesses material, non-public information relating to PineBridge or any of its affiliates or subsidiaries, may buy or sell any securities of PineBridge or engage in any other action to take advantage of, or pass on to others, such information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) No Access Person who obtains material, non-public information which relates to any other company or entity in circumstances in which such person is deemed to be an insider or is otherwise subject to restrictions under the securities laws, may buy or sell securities of that company or otherwise take advantage of, or pass on to others, such information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) Access Persons shall submit reports concerning each Securities transaction and should verify their personal ownership of such Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) Access Persons should not discuss any potentially material, non-public information concerning PineBridge or other companies except as specifically required in the performance of their duties.

**&nbsp;&nbsp;&nbsp;&nbsp;2. Information Barrier Policy**

**&nbsp;&nbsp;&nbsp;&nbsp;**Information barriers are designed to restrict the flow of inside information and to prevent Access Persons on the public side (e.g., trading desks) from gaining access to material, non-public information, which came from the private side.

**&nbsp;&nbsp;&nbsp;&nbsp;a. Cross-Barrier Procedures**

A "cross-barrier communication" is a communication between an Access Person on the public side and Access Person on the private side. The communication can be in the form of a conversation, an email, a memo, a research report or any other communication of an Access Person's opinion about the value of a security.

Access Persons are permitted to have cross-barrier communications regarding (a) investments generally, which communications do not relate to any specific issuer (e.g. industry related investment communications) and (b) communications which are issuer specific, but which involve only public information (Legal or Compliance should be consulted prior to these conversations to determine if such communication should be monitored by the Legal or Compliance Department).

Access Persons on the private side of the information barrier are prohibited from communicating non-public information (including impressions or information derived from non-public information) regarding an issuer of public securities to any Access Person on the public side of the information barrier unless the communication is notified in advance and monitored by the

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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Compliance Department and the public side has agreed to receive the information prior to the information being communicated.

The Access Person who was brought across the barrier must maintain the confidentiality of the information received at all times and may use it only for the business purposes for which it was disclosed.

**&nbsp;&nbsp;&nbsp;&nbsp;b. The Watch List**

The Watch List is a highly confidential list of companies about which PineBridge may have received or may expect to receive material, non-public information. The contents of the Watch List and any related restrictions imposed by the Compliance Department are extremely confidential therefore access to the Watch List is strictly limited and tightly controlled.

&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;***i.<u>Placement of Securities On/Off the Watch List</u>***

A company normally will be placed on the Watch List when PineBridge has received or expects to receive material, non-public information concerning that company. This usually occurs when PineBridge is involved in an assignment or transaction that has not been publicly announced or when PineBridge otherwise determines that there is a need to monitor the trading activity in such company.

A company will be removed from the Watch List at the request of the person who initiated placement on the list, usually when the company's involvement in the transaction relating to the company has ended. Companies also may be removed from the Watch List when they are moved to the Restricted List.

&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;***ii. <u>Implementation and Monitoring</u>***

The person who initially places a company on the Watch List is responsible for notifying the Compliance Department when it should be removed. The Compliance Department maintains the Watch List. In addition, the Compliance Department monitors trading activity in any company on the Watch List.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**c. The Restricted List**

The Restricted List is a confidential list of companies that are subject to restrictions in trading. Restrictions apply to trading for Advisory Clients, proprietary accounts, and trading for Access Person and related accounts.<sup>2</sup> Companies on the Restricted List are to be kept confidential and are not to be disclosed to anyone outside of PineBridge.

<sup>2</sup> Certain issuers on the Restricted List that have been added by the Leveraged Finance team may not restrict the trading of leveraged loans for the issuer in question. The issuers for whom this is true will be designated as such on the Restricted List.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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&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;***i.<u>Placement of Securities On/Off the Restricted List</u>***

The placement of a company on the Restricted List generally restricts all trading in the securities of that company. Since a company may be placed on the Restricted List for a number of reasons, no inferences should be drawn concerning a company or its securities due to its inclusion on such list.

A company will be removed from the Restricted List at the request of the person who initiated placement on the list, usually when the company's involvement in the transaction relating to the company has ended.

For public companies in which an Access Person (other than a Non-Executive Director) sits on the Board of Directors or acts in a similar capacity, the relevant issuer will be placed on the Restricted List upon notification to Compliance. Access Persons (other than Non-Executive Directors) are required to report their "outside business activities" or "related board level activities" in StarCompliance (see "Outside Business Activities" within this Code).

&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;***ii. <u>Implementation and Monitoring</u>***

The Compliance Department is responsible for placing or removing a Security from the Restricted List and has the ultimate responsibility for maintaining the Restricted List.

**&nbsp;&nbsp;&nbsp;&nbsp;3. Confidentiality**

In carrying out business activities, Access Persons often learn confidential or proprietary information about PineBridge, its customers, suppliers and/or third parties. Access Persons must maintain the confidentiality of all information entrusted to them, except where disclosure is authorized or legally required.

***F. Anti-Fraud and Anti-Manipulation***

In connection with the purchase or sale of any Securities, Access Persons shall not, directly or indirectly, (i) employ any device, scheme or artifice to defraud, (ii) make any untrue statement of a material fact or omit to state a material fact, (iii) engage in any act, practice or course of business which would operate as a fraud or deceit, (iv) engage in any manipulative practice, or (v) trade ahead of or in conflict with an investment recommendation.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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V. Personal Securities Transactions

The key purpose of this policy is to ensure that conflicts of interest between Access Persons and Clients arising from the personal securities transactions of Access Persons are limited. The main driver for the potential conflict of interest is the differential of information available to employees and Clients.

***A. Trading in General***

Access Persons may not knowingly engage in the purchase or sale of a Security or Related Security (other than an Exempt Security, as explained below) of which they have Beneficial Ownership (other than an Exempt Transaction, as explained in Appendix A) and which, within seven (7) calendar days before and after the transaction (also known as the "Blackout Period"):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1) is being considered for purchase or sale by a Client, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2) is being purchased or sold by a Client.

The Blackout Period restriction applies on an issuer-level basis, such that an employee is prohibited from placing an equity trade where the Firm is placing a fixed-income trade in the same issuer<sup>3</sup>. In certain circumstances, the Compliance Department may provide an exception to an Access Person that permits the Access Person to trade within seven (7) calendar days of a Client transaction. If an Access Person has been unable to receive approval for a pre-clearance request for 30 calendar days (by receiving at least one pre-clearance denial per week over the 30 days) due to Advisory Client transactions, the Access Person may contact the Compliance Department and the Compliance Department will undertake an analysis (which may include factors such as prior exceptions granted, the Access Person's group and its relation to the Security in question, and the Firm's current and prior trading of the Security), and may attempt to designate a day on which the Access Person may transact. Such an exception may only be given when closing a position (either in part or in full) and will typically be in instances where PineBridge has not transacted on the prior business day.

*S&P 500 Exemption to the Blackout Period:*

The Blackout Period does not apply to Securities in the S&P 500 Index where the quantity of Securities requested for pre-clearance is 500 shares or fewer for the period described above as the Blackout Period.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Exempt Securities**

Exempt Securities are Securities that do not have to be pre-cleared or reported to the Compliance Department and are not subject to the short-term trading limitation requirement of this Code.

The following are Exempt Securities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.Securities that are direct obligations of the U.S. and foreign governments.

<sup>3</sup> When the ultimate parent company for an issuer is a government entity, trading in one state-owned entity does not prohibit trading in all other state-owned entities controlled by that government.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.Bankers' acceptances, bank certificates of deposit, commercial paper, money market funds and certain high quality debt instruments (e.g., structured notes / deposits including currency linked notes, interest rate linked notes and index-linked notes), including repurchase agreements. ADRs do not fall into this category;

*Note: High quality debt instruments are interpreted to mean any instrument that is rated in one of the two highest rating categories by a Nationally Recognized Statistical Rating Organization.*

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.Shares of unaffiliated registered open-end investment companies (e.g. open-end non-affiliated mutual funds), annuities, or other commingled vehicles.

Exchange Traded Funds ("ETFs"), options on ETFs and closed-end funds (including business development companies) do not require pre-clearance in StarCompliance, but accounts holding these instruments are not exempt from reporting under the Code and must be disclosed in StarCompliance.

Accounts that only have the ability to invest in Exempt Securities (such as unaffiliated mutual funds, certain 529 Plans investing in only Exempt Securities, as well as 401(k) plans investing in only Exempt Securities, such as the PineBridge 401(k) plan) are not required to be reported in StarCompliance.

Affiliated Funds<sup>4</sup> are considered Non-Exempt and thus require pre-clearance prior to transacting. The Current List of Affiliated funds is available on SOURCE (excluding affiliated fund purchases in the PineBridge 401(k) plan).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.Any transactions and/or holdings in Securities in a blind trust over which an Access Person has no direct or indirect influence, control or knowledge. An Access Person must notify the Compliance Department of the establishment of such blind trust as part of their initial certifications on StarCompliance or of any opening of such blind trust thereafter. Documentation must be provided to the Compliance Department as evidence that the Access Person has no direct or indirect influence, control or knowledge of the transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.Investment linked insurance policies.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi.Compulsory savings plans for the retirement of residents (e.g. mandatory provident fund/occupational retirement schemes in Hong Kong, central provident fund in Singapore, or equivalent in other jurisdictions).

*Note 1: In addition to the above, there are certain transactions designated by the Compliance Department as Exempt ("Exempt Transactions"), which are not required to be pre-cleared, but are required to be reported to Compliance. These transactions are discussed in Appendix A.*

<sup>4</sup> PineBridge employees in Taiwan do not require pre-clearance for affiliated fund purchases. Taiwan employees can invest in PineBridge Funds via a PineBridge omnibus account, provided they have opened a PineBridge brokerage account before investing. These transactions will be kept in the Taiwan fund administration system and meet compliance requirements.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Circumstances Requiring Pre-clearance**

All Access Persons must obtain pre-clearance via StarCompliance and/or from the Compliance Department prior to purchasing or selling a Security that is neither an Exempt Security nor can be bought or sold in an Exempt Transaction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**a.Pre-clearance Approval:** Once received, pre-clearance approval is valid for the same day and the next trading day through the market close in which the security is being traded (**the "Approval Period")**. For example, if a Hong Kong based employee receives trading approval for a security traded on the Hong Kong exchange on Friday that approval is valid for Friday and Monday, up until the Hong Kong market close on Monday. If an approval is received after trading hours, the approval remains valid only for the next trading day. For example, if a Hong Kong based employee receives trading approval for a security traded on the Hong Kong exchange after the Hong Kong market close on a Friday, the approval is still only valid for Friday and through Monday's market close.

When determining the length of the approval period for securities traded on a foreign market, employees must look to the local market time in which the security is being traded and then apply the pre-approval rules. For the avoidance of doubt, an approval received by an Access Person in Asia relating to any transactions in US Securities is dependent on the US market in which the security is being traded. For example, if a Hong Kong employee receives trading approval for a security traded on a US exchange on Monday 10:00am (CHST), then the approval expires on Monday 4:30pm (EST), which is Tuesday 4:30am (CHST). Looking to the US Market, the trade was approved on Sunday at 10:00pm (EST) (the day the approval is granted) and is valid through Monday's market close local time.

To avoid confusion, the trade request approval generated from the system will contain a "Local Expiry Date/Time", indicating the end of the Approval Period. An order that is not executed within the Approval Period must be re-submitted for pre-clearance approval. Approval for a private placement purchase or initial public offerings ("IPOs") is valid until the closing of the private placement transaction or IPO period.

Access Persons wishing to enter a limit order for a Security that is neither an Exempt Security nor can be bought or sold in an Exempt Transaction are only permitted to enter limit orders that are good for the day they are entered ("Day Order"). **Access Persons may not enter limit orders with durations exceeding a day (e.g., good-til-cancelled, stop loss) for transactions other than Exempt Securities or Securities that can be bought or sold in an Exempt Transaction.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**b.Procedures for Approval:** Access Persons must request pre-clearance electronically, using StarCompliance. Pre-clearance approval is granted if the purchase or sale complies with this Code and the foregoing restrictions.

Non-Executive Directors are not subject to the pre-clearance requirement referred to above unless at the time of the transaction, knew or, in the ordinary course of fulfilling the Non-Executive Director's official duties as a director of PineBridge, should have known that: (a) PineBridge engaged in a transaction in the same security within the last seven (7) calendar days or is engaging or going to engage in a transaction in the same security within the next seven (7) calendar days; or (b) PineBridge has within the last seven (7) calendar days considered a transaction in the same security or is considering a transaction in the same security within the

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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next seven (7) calendar days. In addition, the following requirements of this Policy, Sections V.A.3, 4, 5 and 7 do not apply to Non-Executive Directors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**3. Initial Public Offerings**<sup>5</sup>

The purchase of equity Securities in IPOs by Access Persons can create an appearance that such personnel have taken inappropriate advantage of their positions for personal benefit. Accordingly, Access Persons who are Investment Personnel are prohibited from purchasing an IPO. All other Access Persons must obtain pre-clearance from the Compliance Department prior to participating in an IPO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**4. Private Placements**

Access Persons must obtain prior approval through StarCompliance from the Compliance Department before acquiring Beneficial Ownership of any Securities offered in a Private Placement (other than a Private Placement sponsored by PineBridge). Access persons may be requested to supply to Compliance copies of any private placement memorandum, subscription documents, offer sheets, term sheets or other written documentation pertaining to the deal. Approval will be given only if it is determined that the investment opportunity should not be reserved for Advisory Clients and that the opportunity to invest has not been offered to the Access Person by virtue of his or her position.

Access Persons must disclose investments in a Private Placement if an investment in the issuer of the Private Placement is being considered for a Client and the Access Person is involved in the decision making process. A decision to make such an investment must be independently reviewed by the Access Person's manager or a Managing Director who does not have Beneficial Ownership of any Securities of the issuer.

The Private Placement must be reported in StarCompliance and confirmation of the purchase must be provided to the Compliance Department once complete. Investments by Access Persons in Private Placements sponsored by PineBridge are required to be reported in StarCompliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**5. Short-Term Trading**

Access Persons are prohibited from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Realizing profits from selling a Security fewer than 30 calendar days after the purchase of the position (i.e. trade date + 30 days).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Realizing profits from closing a short position within 30 calendar days of opening the position (i.e. trade date + 30 days).

<sup>5</sup> Exemptions to the Firm's policy on IPOs may be granted provided that PineBridge follows local regulatory requirements and the Compliance Department provides prior approval.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Realizing a profit on a put or call option (whether through expiration or through automatic execution) fewer than 30 calendar days after the purchase or sale of the underlying position (i.e. trade date + 30 days).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• To clarify with an example, if a trade is executed on January 1<sup>st</sup>, it cannot be sold at a profit until February 1<sup>st</sup>. If that position is sold on January 31<sup>th</sup> or earlier, it will be considered a violation.

A last-in, first-out ("LIFO") methodology will be applied to a series of Securities purchases for determining compliance with this holding rule. (Note: gains are calculated differently under this rule than they would be for tax purposes.)

There are a few exceptions to this prohibition: (1) Exempt Securities; (2) ETFs that track an index; (3) futures and options on ETFs; (4) redemption of funds with a cooling off period; (5) non-volitional margin calls (employees receiving margin calls that result in hardship should contact their local Compliance Department); (6) hardship exemptions, which may be approved by the Compliance Department in extreme circumstances; and (7) any other special exemption approved by Compliance <u>prior</u> to the profit being realized. Hardship exemptions and special exemptions must be approved in advance of trading. Please contact the Compliance Department with any questions.

The Compliance Department will monitor short-term trading and address any abuses of short-term trading profits on a case-by-case basis. If an abuse is discovered, Access Persons may be required to disgorge any profits realized on personal trades executed within 30 days. Day trading by Access Persons is strictly prohibited.

Personal trading in unusually high frequency is discouraged. The Compliance Department may contact any Access Person and/or his or her supervisor deemed to be trading with excessive frequency. This principal applies to Exempt Securities as well.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**6. Market Timing**

Market Timing is the short-term trading in and out of predominantly US registered investment companies, generally those that are focused on non-US investments using information that is publicly known, but not yet reflected in the share price. Furthermore, more sophisticated market timers have taken advantage of disparities between the last quoted price of a Fund's underlying portfolio securities and potentially inaccurate fair valuation of those securities. Market timing by Access Persons is strictly prohibited whether or not the market timing relates to products advised or sub-advised by PineBridge.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**7. Gifting of Securities / Inheritance** 

The gifting of Securities or receiving of securities from an inheritance is permitted without pre-clearance. Nonetheless, these Securities must be disclosed in StarCompliance and reported.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**8. Cryptocurrency** 

Cryptocurrency is a digital currency in which encryption techniques are used to regulate the generation of units of currency and verify the transfer of funds, operating independently of a central bank. Also referred to as digital currencies, alternative currencies and virtual currencies, cryptocurrencies generally utilize blockchain technologies, which is a distributed ledger system. There are more than 1500 cryptocurrencies and popular examples include Bitcoin, Ethereum, Ripple, Litecoin, and NEO. PineBridge does not currently trade in cryptocurrencies for its Clients.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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Because there is no potential conflict with Client trading, Access Persons are permitted to trade in cryptocurrency without preapproval to Compliance and without disclosing their trading accounts subject to the compliance of local laws and regulations. However, trading in cryptocurrencies is highly speculative and includes a high risk of loss. Additionally, the regulatory landscape concerning cryptocurrencies is still in its infancy and some nations and financial regulators may limit or restrict trading and actions that are perceived as criminal in nature (including money laundering). Any Access Person choosing to trade in cryptocurrencies should proceed with caution, especially to meet fit and proper criteria which includes financial soundness. Also they should ensure they are complying with any local laws and regulations adhering to all other sections of the Code, including high frequency or day-trading.

*Note 1: Although Cryptocurrencies do not generally trade on regulated exchanges, Access Persons still need to obtain pre-approval prior to trading derivative products (e.g. futures) where the underlying instrument is a cryptocurrency. For example, the Chicago Mercantile Exchange ("CME") currently offers trading on Bitcoin futures. If an Access Person wanted to trade in the Bitcoin future on the CME, they would need to obtain pre-approval and comply with the Code.*

***B. Reporting***

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1. Disclosure of Holdings and Accounts**

Access Persons must disclose via the "Initial Holdings Report" or through direct registration in StarCompliance to the Compliance Department, whether they have a direct or indirect Beneficial Ownership and/or control of any Securities or affiliated fund accounts within 10 calendar days of commencement of employment (such information must be current as of a date no more than 45 days prior to employment).

If an Access Person subsequently opens a new account of which he/she has Beneficial Ownership and/or control (whether or not this account holds reportable Securities), the Access Person must notify the Compliance Department via StarCompliance within 10 calendar days following the opening of such account. Securities held in certificate form that are not held in street name must also be reported to the Compliance Department via StarCompliance. Accounts that only have the ability to invest in Exempt Securities (such as unaffiliated mutual funds, 529 Plans investing in only Exempt Securities, and 401(k) Plans investing in only Exempt Securities) as defined in the Exempt Securities section above are not required to be reported. All reports submitted to the Compliance Department will be treated as confidential. Accounts at qualifying Robo-Advisers are not required to be disclosed in StarCompliance if the Robo-Advisers investment options are pre-selected by the Robo-Adviser and the Access Person is not able to pick individual stocks and/or funds to invest in. Examples of qualifying Robo-Advisers include, but are not limited to, Betterment, Wealthfront, Acorns, MarketRiders, Creditease's Toumi RA, and Algebra. If there is a question regarding whether a Robo-Adviser qualifies under the Code, please consult Compliance.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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Any Access Person who fails to report his or her holdings or the opening of a new brokerage account in accordance with this Code shall be deemed to be in violation of this Code.

*Note 1: An account with no holdings, and where the Access Person has no intent to use the account going forward,* ***must still be reported*** *to the Compliance Department and is still subject to this Code. By reporting the account to Compliance, any subsequent activity in such accounts will be reported.* 

**Annual Holdings Report**

Access Persons must provide and certify on an annual basis, a report of their accounts and beneficial holdings within 30 days after the calendar year end. The information must be current as of a date no more than 45 days prior to the submission of the report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2. Transactions for Access Persons**

Access Persons must arrange for the Compliance Department to be provided all transactions electronically in an account that is Beneficially Owned and/or controlled by such Access Person. In order for the Access Person to arrange the delivery of electronic data, the Access Person must notify the Compliance Department of the broker-dealer(s) from which the Compliance Department will request the setup of the electronic transactional feed. The Approved E-feedable Brokers list is available on SOURCE. Access Persons must arrange for the Compliance Department to receive transaction data through electronic delivery directly from the broker-dealer.

*NOTE: For Access Persons located in Asia and EMEA where, due to regulatory requirements or market practice, electronic feeds of transactions are unavailable, Access Persons are required to provide the Compliance Department on a timely basis with duplicate copies of confirmations for all transactions and periodic broker statements in relation to account(s) that are Beneficially Owned and/or controlled by such Access Person.* 

*Note 1:* ***Electronic Broker Feeds*** 

*Access Persons employed by PineBridge entities in the Americas, and Household Members of those Access Persons, must maintain personal securities accounts in which they have a beneficial interest at brokerage firms that are able to provide the transaction data electronically to PineBridge. If an Americas Access Person maintains an account(s) prior to joining PineBridge with brokerage firms that do not provide data electronically to PineBridge, he/she will be asked to move the account(s) to a brokerage firm that does within 60 days of employment. The Approved Brokers list is available on SOURCE. Access Persons outside of the Americas should also endeavor to provide transaction data through electronic delivery where possible. If an Access Person outside of the Americas maintains an account at a broker where electronic feeds are available, the Access Person must enable the electronic feed to be delivered to StarCompliance. For certain brokers, this may require additional action by the Access Person. This requirement applies to all accounts, even if an account has no holdings or trading activity.* 

*Note 2:* ***Non-Discretionary / Managed Accounts****, in which an Access Person does NOT have trading discretion and the account is managed by a third party and who executes trades and manages an account on behalf of the Access Person,* ***are required to be reported.*** *Transactions in such accounts do not require pre-clearance and are not subject to the Blackout Period or Short-Term Trading rules, however reporting is still required. Therefore, for such discretionary / managed accounts, Access Persons must ensure they provide duplicate confirmations and statements to the* 

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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*Compliance Department, or for Access Persons located in the Americas, brokerage firms that provide transaction data electronically to PineBridge must be used (per Note 1 above). Accounts at Robo-Advisers are not subject to reporting, subject to the compliance of local laws and regulations.*

**Quarterly Transactions Certification – For Access Persons Located Outside of the Americas** 

Access Persons who are located outside of the Americas are required, within 30 days after the calendar quarter, to complete a report of all transactions in Securities of which the Access Person had Beneficial Ownership and/or control (except for those Securities classified as Exempt Securities).

Access Persons who are located outside of the Americas must complete the report even if no reportable transactions occurred during the quarter.

**Exceptions to Reporting Requirements**

A Non-Executive Director is not subject to the reporting requirements of B.1 or B.2 above; however, a quarterly report under B.2 is required if the Non-Executive Director, at the time of the transaction, knew or, in the ordinary course of fulfilling the Non-Executive Director's official duties as a director of PineBridge, should have known that: (a) PineBridge engaged in a transaction in the same security within the last seven (7) calendar days or is engaging or going to engage in a transaction in the same security within the next seven (7) calendar days; or (b) PineBridge has within the last seven (7) calendar days considered a transaction in the same security or is considering a transaction in the same security within the next seven (7) calendar days.

***C. Exceptions***

Compliance may grant exceptions to the above rules at their discretion. Any such exceptions will be approved by the Chief Compliance Officer and communicated to the relevant employee.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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|:---|:---|:---|:---|
| **Transactions & Securities Matrix** | **Transactions & Securities Matrix** | **Transactions & Securities Matrix** | **Transactions & Securities Matrix** |
| **Type / Description** | **Pre-clearance Required?** | **Reporting Required** | **Additional Information** |
| **Transaction in Non-Exempt Security** <br>(e.g. common stock) |  |  |  |
| **Transaction in an Exempt Security** <br>(e.g. unaffiliated mutual fund) | **X** | **X** |  |
| **Exempt Transaction** <br>(e.g. ETF) | **X** |  |  |
| **Transactions in Affiliated Funds** |  |  |  |
| **Transactions in PineBridge Sponsored Funds** | **X** |  |  |
| **Transactions in IPOs** |  |  | **Investment Personnel** are prohibited from purchasing an IPO. |
| **Private Placements** |  |  | **Pre-clearance:** Submit request through StarCompliance Module <br>**Reporting:** Signed subscription/deal documents must be provided through the StarCompliance system or via email to StarCompliance@pinebridge.com. |

---

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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---

| | | | | |
|:---|:---|:---|:---|:---|
| **Brokerage Accounts Matrix** | **Brokerage Accounts Matrix** | **Brokerage Accounts Matrix** | **Brokerage Accounts Matrix** | **Brokerage Accounts Matrix** |
| **Type / Description** | **Reporting Required** | **E-feed Connection Available?** | **Paper Broker Statements sent to Local Compliance Department?** | **Additional Information** |
| **Active Brokerage Account for Access Person located <u>in the Americas</u>** |  |  | **X** | **Active Brokerage Account at Non-E-Feed Broker that Cannot be Transferred:** Certain accounts may not be able to switch brokers (e.g. a compensation plan); if this is the case, reporting is required by way of arranging for copies (paper or pdf) of broker statements to be sent to StarCompliance with the coordination of local Compliance Department.  |
| **Active Brokerage Account for Access Person located <u>outside the Americas</u>**  |  |  |  | **Possible e-feed connection:** If the Non-U.S. Employee has an account at an e-feed broker, the Employee must authorize the e-feed connection. If not, duplicate copies (paper or pdf) of statements must be sent to your local Compliance department. |
| **Active Brokerage Accounts that only invest in Exempt Securities** <br>(e.g. several 529 plans, several 401K plans, qualifying Robo-Advisers) | **X** | **X** | **X** | **Requirements:** An account holding only Exempt Securities, and where the Access Person has no ability to invest in non-Exempt securities, does not have to be reported. *Accounts at qualifying Robo-Advisers are not subject to reporting, subject to the compliance of local laws and regulations.* |
| **Inactive Brokerage Account** |  |  |  | **Requirements**: An account with no holdings, and where the Access Person has no intent to use the account going forward, must be reported.  |

---

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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VI. Outside Business Activities

"<u>Outside business activities</u>" include service as an employee, consultant, board member, partner, officer, director, owner or trustee of an organization that is not an affiliate of PineBridge.

Given the nature of the Firm's business, the Firm's duties to its clients and equity owners, and the role of investment and financial advisory professionals generally, Access Persons who engage in outside business activities may face numerous and significant potential conflicts of interest. Prior to pursuing any such outside business activities, Access Persons (other than Non-Executive Directors) must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• receive approval from the Access Person's supervising Managing Director or department head if the outside business activity includes service on a board or similar body;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• complete a declaration under the Outside Activity section found on StarCompliance <u>within 30 calendar days</u>, which will be reviewed and approved or disapproved (as appropriate) by the Compliance Department and the Access Person's supervisor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• if the outside business activity includes service on a board of directors or similar body, obtain the Acknowledgment and Waiver Letter described below if required; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• receive approval from your Supervising Managing Director for a presentation, talk, or service on a panel in which you are offered an honorarium.

Hiring managers must obtain information regarding Outside Business Activities from potential new hires prior to extending an offer to proactively identify any potential conflicts of interest. An initial disclosure of outside business activities must be made to the Compliance Department at the commencement of employment.

*Note: If the Board position is for a public company (i.e., the company is listed on an exchange), Compliance must be notified <u>prior to</u> such appointment. Public companies that have an Access Person as a Board member will be added to the Restricted List until the Access Person no longer serves in a capacity in which MNPI could be obtained.* 

<u>General Guidelines</u>

When engaged in an approved outside business activity, Access Persons must:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• when a potential conflict of interest may arise, always make decisions in the best interest of PineBridge and our customers – not to advance personal interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• remain aware of how personal activities can lead to potential conflicts, such as taking a second job with or making an investment in a PineBridge customer, vendor or competitor;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• discuss with your manager any situation that could be perceived as a potential conflict of interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• proactively address situations that may put your interests or those of a family member or friend in potential conflict with PineBridge or its customers.

<u>Service on Outside Boards</u>

The Compliance Department will determine procedures to prevent the misuse of material, non-public information, which may be acquired through service on the board of a company, as well as other procedures or investment restrictions, which may be required to prevent actual or potential conflicts of interest.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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In certain circumstances, the corporation or other entity in which the board governs must provide the Access Person with written assurances (an "<u>Acknowledgment and Waiver Letter</u>") regarding potential conflicts that may arise from time to time. The Acknowledgement and Waiver Letter should include an acknowledgement by the company that potential conflicts may exist, that the Access Person will resolve those conflicts in favor of PineBridge, and that the Firm has waived any such conflicts. The Compliance Department may determine, based on the nature of the activity of serving on the Board, the position the Access Person holds on the board, the job function of the Access Person at PineBridge, among other things, whether the Acknowledgement and Waiver Letter is required. Depending on the facts and circumstances, the Compliance Department will notify the Access Person if the Acknowledgement and Waiver Letter is required. A form of Acknowledgement and Waiver Letter is attached to this Code of Ethics as Appendix B.

In addition to complying with the policies and procedures set forth in this Code, Access Persons must be vigilant in identifying and managing the potential conflicts of interest that may arise by virtue of their service on a board. Depending on the circumstances, these conflicts may require the Access Person to recuse him- or herself from deliberations of the board. In some cases, it may be necessary to resign from the board entirely. Access Persons should seek guidance from the Legal or Compliance Department as to how these potential conflicts may be best addressed.

<u>Insolvent companies</u>

Access Persons should also be aware that corporations that are insolvent or operating in the so-called "zone of insolvency" may present particular legal challenges for officials and directors, including expansion of fiduciary duties to include the corporation's creditors, as well as its shareholders. The case law relating to duties of directors of insolvent corporations is unsettled, and may vary considerably from jurisdiction to jurisdiction. Access Persons serving on a board that becomes insolvent or enters the vicinity of insolvency should seek legal guidance promptly from the board's legal counsel.

<u>Service as a Public Official</u><sup>6</sup>

Before serving as a public official or running for elected office, an Access Person must obtain prior written approval from the Firm's General Counsel or his or her designee. It is important that personal political activities or interests do not conflict with responsibilities at PineBridge or imply the support of PineBridge.

<sup>6</sup> "Public Official" includes other related positions in a government capacity that may cause or appear to cause a conflict of interest with PineBridge.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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Specifically:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Firm's name should never be used by employees running for a political office, other than to identify PineBridge as their employer;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• holding or campaigning for political office by a PineBridge employee must not create, or appear to create, a conflict of interest with the Firm's duties;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• PineBridge funds or other PineBridge assets are never to be used for political purposes, including political advocacy ("lobbying") without first consulting the Legal or Compliance Department;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• only authorized representatives can make corporate contributions to political candidates for public office on behalf of PineBridge; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• because laws and regulations governing corporate political activities and contributions are complex, the Legal or Compliance Department must be consulted regarding contributions to ensure such contributions and activities are permitted and consistent with the Firm's business strategy for the region.

To avoid even the appearance of any conflict with the Firm's interests, employees who participate in community support efforts outside of PineBridge sponsored programs should never imply the Firm's endorsement of the effort.

<u>Exceptions</u>

The term "outside business activities" generally is not intended to include service to any organization that is (<u>i</u>) a personal holding company or (<u>ii</u>) an entity identified in Section 501(c)(3) of the US Internal Revenue Code (provided that it is an unpaid position). A "<u>personal holding company</u>" is an entity that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• is wholly-owned by the Access Person and/or members of the Access Person's immediate family;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• is used solely for the Access Person's personal investments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• is not actively managed;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• does not have any dealings with PineBridge or its Clients; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• does not compete with PineBridge.

The approvals required for outside business activities are not required for activities relating to those exempted organizations. However, these activities must be reported in StarCompliance.

Activities such as ownership or directorship of a company whose sole purpose is to hold a property that generates passive rental income, membership on the board of a residence and other similar activities will not be considered outside business activities and are exempt from the approval and reporting requirements. If you have any questions on activities not specifically mentioned, please contact the Compliance Department.

In addition, Consultants or Contingent Workers deemed Access Persons are not required to disclose their primary employer as an Outside Business Activity. For example, if PineBridge hires a Consultant from ABC Consulting Firm and the Consultant is determined to be an Access Person, the Consultant is not required to disclose ABC Consulting Firm as an Outside Business Activity.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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VII. Gifts & Entertainment

Modest Gifts and appropriate Entertainment can help strengthen business relationships, but these business courtesies, whether given or received by PineBridge employees, must never improperly influence business decisions or bring about the improper performance of a Relevant Function or Activity<sup>7</sup>. Accordingly, it is best practice to monitor the offer and receipt of Gifts and/or Entertainment. In all matters related to Gifts or Entertainment, it is the responsibility of the Access Person to exercise good judgment.

The below requirements related to Gifts and Entertainment apply in most regions; however local thresholds and reporting procedures may exist in certain jurisdictions. Additionally, certain clients or counterparties (e.g. government entities and/or plans) may have stricter rules and prohibitions regarding giving or receiving gifts and entertainment. Please consult your regional policies and procedures or discuss with your regional compliance officer. Please note that amounts are stated in US dollars.

&nbsp;&nbsp;&nbsp;&nbsp;1.**General Guidelines:** 

Offering and/or accepting Gifts and Entertainment is appropriate provided there is a business purpose, the expense incurred is ordinary and necessary, and the Gift or Entertainment falls within this Code and all relevant laws and regulations. Special care must be taken when providing Gifts and Entertainment to officials or employees of governments or government owned or controlled enterprises or other officials who hold legislative, administrative or judicial positions. When providing Gifts or Entertainment to government officials or employees of government owned or controlled enterprises, you are required to abide by local law and the Firm's anti-corruption policies. Access Persons should:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(1)**never allow business Gifts and Entertainment, whether given or received, to improperly influence business decisions or bring about the improper performance of a relevant function or activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(2)**remember if the donor is not present, then the Entertainment is subject to Gift policies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(3)**respect local and cultural sensitivities when exchanging business Gifts and Entertainment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(4)**never provide or accept extravagant Gifts or lavish Entertainment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(5)**never offer or receive anything that could be considered a bribe or other improper payment or Gift;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(6)**never solicit Gifts, favors or Entertainment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(7)**ensure that Gifts and Entertainment are reasonable, ordinary, in good taste, customary and lawful in the country or region where they are exchanged; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**(8)**never offer or accept cash or cash equivalent (i.e., gift cards) in any amount.

Access persons are expected to consult with the Compliance Department if they have any questions regarding Gifts or Entertainment.

&nbsp;&nbsp;&nbsp;&nbsp;**2.Giving Gifts:** 

<sup>7</sup> Relevant Function or Activity: Any function either of a public nature, connected with a business, performed in the course of a person's employment or performed on behalf of a company or another body of persons.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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Access Persons (other than Non-Executive Directors) giving Gifts to prospective or existing clients or counterparties must submit a Gifts Disclosure in StarCompliance for all Gifts within 30 calendar days of giving the Gift.<sup>8</sup> Access Persons may not provide Gifts to a prospective or existing individual of a client exceeding $100 in aggregate in any calendar year. Any exception to the $100 limit must be approved in writing by the Access Person's supervising Managing Director in advance of giving the Gift. Access Persons are generally prohibited from providing Gifts valued at more than $150, however, exceptions may be granted in certain instances provided that prior approval is received from the regional head of compliance and line of business supervisor.

&nbsp;&nbsp;&nbsp;&nbsp;**3.Receiving Gifts:** 

All Gifts received<sup>9</sup> by Access Persons (other than Non-Executive Directors) exceeding the De Minimis Amount must be reported via the Gifts and Entertainment Disclosure on StarCompliance within 30 calendar days of the date of receipt of such Gift. In addition, Gifts valued at more than $100 must be approved by the Access Person's supervisor within five (5) business days. While PineBridge has adopted a prohibition on Gifts valued at more than $150, certain Gifts in excess of $150 received by Access Persons may be accepted, provided that they be shared among the department receiving the Gift. The manager of the department receiving the gift is responsible for seeing that the gift is reported via StarCompliance. Where such a Gift cannot be reasonably shared amongst employees (as in the case of an item of clothing), the Gift may be accepted and subsequently donated to charity. This includes, among other things, gratuities and Gifts received by Access Persons for speaking engagements.

If you are offered a Gift that does not meet the above criteria, politely decline the Gift. If declining a Gift would be offensive or hurt a business relationship, accept the Gift on behalf of PineBridge and submit a written Gift report to your supervisor, and work with your supervisor and the Compliance Department to determine the appropriate disposition of the Gift.

&nbsp;&nbsp;&nbsp;&nbsp;**4.Entertainment Given:** 

Any entertainment given, excluding client meals, by an Access Person (other than a Non-Executive Director) must be reported through StarCompliance within 30 calendar days of providing such Entertainment. If there are multiple Access Persons giving the Entertainment, then only one Access Person need to report the entertainment in StarCompliance so long as all Access Persons are named within the report.**&nbsp;&nbsp;&nbsp;&nbsp;**

Client meals must be disclosed in the Concur expense reporting system. On a quarterly basis Compliance will review expense reports related to client meals given by Access Persons for any prohibited activities. outlined earlier in the policy. Access Persons must also comply with travel and entertainment policies developed by PineBridge. For any office that is not currently using the Concur system, please contact the PineBridge Accounts Payable Team to ensure that disclosure of a client meal is recorded.

Travel, including flights, hotels, and lavish destinations, should not be given to prospective or existing clients unless under special circumstances. Contact the Compliance Department prior to extending travel accommodations to a client. Managing Director approval may also be required for certain client travel situations. In the case of PineBridge offering hotel lodging, this is permitted for only the night(s) related to

<sup>8</sup> Reporting requirements do not apply to gifts of minimal value (e.g., pens, notepads or modest desk ornaments) or to promotional items valued at less than $20 that display the PineBridge logo (e.g. umbrellas, tote bags or shirts).

<sup>9</sup> Employees that are Registered Representatives of PineBridge Securities LLC may not offer or receive gifts in excess of $100 and must report all gifts given or received, regardless of the amount.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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the event (no extra nights). High-profile special events require prior approval from the Access Person's supervising Managing Director or department head (e.g. The World Cup, The Super Bowl, and NBA Playoffs, etc.).

&nbsp;&nbsp;&nbsp;&nbsp;**5.Entertainment Received:** 

Access Persons (other than Non-Executive Directors) must report through the StarCompliance system all Entertainment received within 30 calendar days of the receipt of such Entertainment.

Entertainment includes but is not limited to: meals, cocktails, outings (e.g. golf, theater tickets, concerts, sporting events) and holiday parties when the third party provider is in attendance.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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VIII. Political & Charitable Contributions**&nbsp;&nbsp;&nbsp;&nbsp;**

***A.Political Contributions***

PineBridge is committed to complying with all applicable regulations related to political contributions. Certain of these regulations may disqualify PineBridge from seeking business from a potential client on the basis of a contribution made by an employee. Employees are required to familiarize themselves with and abide by policies and procedures covering political contributions established by PineBridge and regional compliance departments. Contact your manager or your local compliance officer if you have any questions on the policies that are applicable to you. For the purposes of this policy, a "Covered Associate" is defined as an employee of PineBridge Investments LLC or PineBridge Galaxy LLC (both US SEC registered investment advisers).

In order to avoid current or potential future conflicts of interest, Covered Associates, together with their spouse and dependent Household Members<sup>10</sup>, **must obtain <u>prior approval</u> from Compliance through the StarCompliance system <u>before</u> making any political contributions to any state or local US government official or candidate.** Covered Associates, together with their spouse and dependent Household Members, are prohibited from making political contributions to any state or local US government official, entity or political party (including incumbents, candidates or successful candidates for elected office, including any election committees) that in aggregate are in excess of the following limits:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.Up to $150 per candidate, per election to candidates for whom the Covered Associate is not entitled to vote;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.Up to $350 per candidate, per election to candidates for whom the Covered Associate is entitled to vote<sup>11</sup>; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.Up to $350 per Political Party, Political Action Committee ("PAC") or similar organization established in support of a Political Party or particular candidate per election, as long as the contribution to the Political Party, PAC or similar organization is not used to indirectly exceed the limits in A. and B. above.

Please note that these limits apply to all states and political subdivisions of states (e.g. cities, counties, municipalities, etc.), including pools of assets sponsored or established by a state or local government (e.g. pension plans for government employees).

However, these limits and the requirement to obtain prior approval from Compliance do not apply to candidates for Federal office (US Senate, House of Representatives, or presidency) who do not currently hold any state or local government office. In addition, although this Policy is limited to also include dependent Household Members, it should be very clear that no Covered Associate may indirectly seek to circumnavigate the intent of this rule through other individuals or means, such as through privately owned corporations.

Covered Associates are prohibited from compensating (or coordinating or soliciting) any third party (such as a placement agent or PAC) to solicit advisory business from a US government official, entity or political party (as described in further detail above), unless the third party is registered as either a US broker-dealer or investment adviser and has certain similar restrictions in place. Americas Compliance must be consulted prior to: (1) hiring/

<sup>10</sup> Dependent Household Members for purposes of this policy include individuals who are either family members or with whom you share a residence whom you also claim as a dependent for tax purposes.

<sup>11</sup> A person is "entitled to vote" for an official if the person's primary residence is in the locality in which the official seeks election.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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using any such service; and (2) any change in the third party's activities, where the third party may solicit business in the US.

The policy also includes providing "in-kind" non-cash contributions to a political campaign. For example, the use of the Covered Associates' or Firm's time or resources to benefit any state or local US government official, entity or political party would be subject to the above limits.

Note for all Covered Associates: The SEC's adopting release (Release No. IA-3043) to the rule regarding "Political Contributions by Certain Investment Advisers" provides further guidance such that PineBridge Investments LLC and Covered Associates must never "funnel payments through third parties, including, for example, consultants, attorneys, family members, friends or companies affiliated with the adviser as a means to circumvent the rule."

Non-compliance with this section may result in disciplinary action, up to, and including termination of employment. Covered Associates may be required to certify their compliance with the above requirements on a periodic basis.

Any request for exceptions must be made to Americas Compliance prior to any contribution being made.

***B. Personal Charitable Contributions Involving a Potential or Existing Client***

PineBridge may, from time to time, provide sponsorship and/or assistance to bona fide charities, educational establishments, community groups and other organizations, whether in the form of funds, assets, services, or other types of support (collectively "Charitable Contributions").

All contributions must be for a bona fide charitable purpose and must not conflict with the terms of the Code of Ethics or any other PineBridge policy. Access Persons (other than Non-Executive Directors) must receive pre-approval for <u>any</u> **<u>personal</u>** Charitable Contribution(s) via the StarCompliance system through the "Outside Activity" module in any scenario where a potential or existing client is asking an Access Person to contribute using personal funds.

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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Appendix A: Exempt Transactions

**Introduction**

The Firm's Code provides that no Access Person may knowingly engage in the purchase or sale of a Security (other than an Exempt Security) or Related Security of which he/she has Beneficial Ownership and/or control (other than an Exempt Transaction), and which, within seven (7) calendar days before and after the transaction:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.is being considered for purchase or sale by a Client, or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.is being purchased or sold by a Client.

The Code provides further that classes of transactions may be designated as Exempt Transactions by the Compliance Department.

**Designation of Exempt Transactions**

In accordance with the Code, the Compliance Department has designated the following classes of transactions as Exempt Transactions, based upon a determination that the transactions do not involve any realistic possibility of a violation of applicable regulations. Unless otherwise noted, the following transactions do not require pre-clearance, **but are subject to the reporting requirements of the Code** (i.e., reported in StarCompliance via an electronic broker feed or by way of the Compliance Department receiving paper or pdf confirms and statements from the broker). Exempt Transactions are not subject to the 30 day short-term trading limitation:

1. Purchases or sales of Securities that are not eligible for purchase or sale by Advisory Clients, for example, shares in closely held or family held companies.

2. Purchases of Securities under automatic or dividend reinvestment plans.

3. Purchases of Securities by exercise of rights issued to the holders of a class of Securities pro-rata, to the extent they are issued with respect to Securities of which an Access Person has Beneficial Ownership.

4. Purchases of Securities by exercise of rights granted to employees under employee stock ownership plan.

5. Acquisitions or dispositions of Securities as a result of a stock dividend, stock split, reverse stock split, merger, consolidation, spin-off or other similar corporate distribution or reorganization applicable to all holders of a class of Securities of which an Access Person has Beneficial Ownership.

6. Acquisitions of Securities by the exercise of rights which are granted to borrowers/policyholders of financial institutions which apply for a public listing of their shares and offer "Free" shares to existing borrowers/policyholders.

7. Transactions in ETFs and Exchange Traded Notes.

8. Transactions in closed-end funds.

9. Foreign Currency transactions. (Note: There is no requirement to report or pre-clear any normal foreign exchange transactions (e.g. converting Euros for US Dollars) or report holdings in foreign currency.)

10. Futures, options trading and spread betting on broad based indices, such as the S&P 500. (Note: All other spread betting must be pre-cleared.)

11. Acquisition of securities due to involvement in an approved Outside Business Activity (as defined in this Code).

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

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Appendix B: Acknowledgement & Waiver Letter

**<u>BY FIRST CLASS MAIL</u>**

[Date]

[Address]

**Acknowledgement and Waiver**

Dear [Board Member]:

This letter will confirm the understanding between [__________] (the "<u>Company</u>") and you regarding certain matters relating to your service on the Board of Directors of the Company (the "<u>Board</u>").

The Company has been informed by you that you are employed by a member company of PineBridge Investments, which provides investment advisory, financial and other related services to a range of clients. In that regard, you may owe certain fiduciary and other duties to such clients and to PineBridge Investments (collectively, the "<u>PineBridge Parties</u>"). From time to time, these duties may conflict with your duties to the Company, its shareholders or the Board (the "<u>Company Parties</u>") that may arise as a member of the Board.

To the extent permitted under applicable law, the Company hereby waives any conflicts arising from your duties to the PineBridge Parties. Without in any way limiting the foregoing, the Company acknowledges and agrees that (<u>i</u>) you will resolve any such conflict in all respects in favor of the relevant PineBridge Parties; (<u>ii</u>) such conflicts from time to time may cause you to recuse yourself from deliberations of the Board or any of its committees, or to withdraw from the Board; and (<u>iii</u>) you will be under no obligation or duty to the Company Parties (or any of them) with respect to business opportunities that you become aware of other than in connection with your service on the Board, including, without limitation, any such opportunities that you become aware of in connection with your employment by PineBridge Investments.

The Company acknowledges that you are serving on the Board strictly in your individual capacity and not as an agent or designee of any PineBridge Party.

To the extent practicable, the Company and the Board will undertake to inform you of any conflicts that exist or that may arise from time to time between the Company Parties, on one hand, and the PineBridge Parties, on the other hand.

Nothing in this letter is intended, nor shall it be deemed, in any way to limit any indemnity, release, exculpation or similar rights and protections to which you are entitled under applicable law, the Company's organizational documents or any other agreement or instrument.

Very truly yours,

[Name of the Company]

By: [Authorized Officer of the Company – Name / Title]

By: [Chairman of the Board of Directors – Name / Title]

**Important note:** Please always refer to the PineBridge Investments intranet site for the most up-to-date version of this Code of Ethics.<br>

## Ex-99.(P)(21)

**12ANNEX A**

**Polen Capital Management, LLC Polen Capital Credit, LLC**

**Polen Capital UK LLP Polen Capital HK Limited**

**<u>Code</u> <u>of</u> <u>Ethics</u>**

While Polen Capital Management, LLC ("<u>Polen Capital</u>"), Polen Capital Credit, LLC ("<u>Polen Credit</u>"), Polen Capital UK LLP ("<u>Polen UK</u>"), and Polen Capital HK Limited ("Polen HK" and collectively, the "<u>Firm</u>")<sup>1</sup> are confident of its employees' integrity and good faith, there are certain instances where associated persons possess knowledge regarding present or future transactions or have the ability to influence portfolio transactions made by the Firm on behalf of its clients in securities in which they also personally invest. In these situations, personal interest may conflict with that of the Firm's clients.

In recognition of the above, the Firm has adopted this Code of Ethics pursuant to Rule 204A-1 promulgated by the Securities and Exchange Commission ("<u>SEC</u>") under the Investment Advisers Act of 1940, as amended. The Code of Ethics establishes standards and procedures for the detection and prevention of inappropriate personal securities transactions by persons having knowledge of the investments and investment intentions of the Firm's clients, and addresses other situations involving a potential conflict of interest between the Firm (and/or its Employees) and its clients. All Employees are required to act in conformity with this Code of Ethics at all times.

Additionally, as Polen Capital and Polen Credit each serve as an investment adviser to certain U.S. registered investment companies or mutual funds, the Firm has designed this Code of Ethics to comply with SEC Rule 17j-1 under the Investment Company Act. In the event of a material change to the Reporting Obligation section of the Code of Ethics, the Chief Compliance Officer shall inform the applicable mutual fund's CCO so that the board of such mutual fund can approve such change no later than six months after it is adopted.

**Statement of General Principles**

The Firm's reputation for integrity and ethics is one of our most important assets. To safeguard this reputation, the Firm believes that it is essential not only for the Firm and all of its Employees to comply with relevant federal and state securities laws and regulations, but also to maintain the highest standards of personal and professional conduct at all times. This Code of Ethics is designed to ensure that our conduct is consistent with these values, with our fiduciary obligations to our clients, and with industry and regulatory standards for investment advisers. The Code of Ethics is fully supported by the Firm's senior management and is routinely reinforced through active business and compliance communications as well as periodic education and training measures.

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<sup>1</sup> Polen Credit is the wholly-owned subsidiary of Polen Capital. Polen UK is likewise a subsidiary of Polen Capital. Polen HK is the wholly-owned subsidiary of Polen UK. Because of these affiliations together with the integration of various functions between the organizations (including, without limitation, the flow and accessibility of certain confidential information between Employees of each organization), the Firm has adopted this singular Code of Ethics to govern the actions of the Employees for each of the respective organizations.

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In recognition of the trust and confidence placed in the Firm by its clients and to stress its belief that its operations are directed to the benefit of its clients, the Firm has developed and adopted the following general principles to guide its supervised persons:

The interests of the Firm's clients are paramount, and all associated persons of the Firm must conduct themselves in such a manner that the interests of the clients take precedence over all others.

All personal securities transactions by supervised persons of the Firm must be placed in such a way as to avoid any actual or potential conflict between the interest of the Firm's clients and the interest of any supervised person of the Firm.

All supervised persons of the Firm must avoid actions or activities that either allow personal benefit or profit from their position with regard to the Firm's clients or otherwise create the appearance of any impropriety.

All supervised persons will remain compliant with federal securities laws and regulations.

Each supervised person shall maintain the confidentiality of any information gained by reason of his or her employment, and shall not use such information in a manner detrimental to the Firm or its clients.

Any potential or actual violation of this Code of Ethics must be promptly reported to the Chief Compliance Officer (or his designee).

Although the Code of Ethics sets forth rules with respect to many situations, all supervised persons should recognize that the Code of Ethics cannot address every possible circumstance that could give rise to a conflict of interest, a potential conflict, or an appearance of impropriety. Moreover, the investment industry is constantly undergoing significant changes, making the ways in which the Firm conducts business more complex. Because rapid changes in the industry constantly present new ethical and legal issues, the provisions set forth herein should not be considered the absolute last word under every circumstance.

**Accordingly whether or not a specific provision of the Code of Ethics applies, all supervised persons must conduct their activities in accordance with the general principles set forth above, and in a manner that is designed to avoid any actual or potential conflict of interest or any abuse of an individual's position of trust and responsibility, as literal compliance with these specific rules will not shield a supervised person from liability for personal trading or other conduct that nonetheless violates a fiduciary duty to the Firm's clients.**

In all cases, doubtful situations should be resolved in favor of the Firm's clients.

Supervised persons should, accordingly, be alert for potential for conflicts of interest, and consult with the CCO (or his designee) whenever questions arise concerning the application of the Code of Ethics to a particular situation. Honesty at all times and in all things is an essential part of your responsibility to the Firm.

**Definitions**

This Code of Ethics requires supervised persons, called "access persons," to report their personal securities transactions and holdings. An access person is a supervised person who has access to nonpublic information regarding clients' purchase or sale of securities, is involved in making securities recommendations to clients, or who has access to such recommendations that are nonpublic. Particularly given the extensive sharing of information across multiple departments, the Firm's supervised persons (as well as its access persons) include each of its officers and employees, as well as any other persons who provide advice on behalf of the Firm and are subject to the Firm's supervision and control.

An access person would be considered to be a beneficial owner of, or have a beneficial interest in, any security in which such person has a direct or indirect monetary interest or is held by such person's spouse,

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minor children, a relative who shares such person's home, or other persons by reason of any contract, arrangement, understanding or relationship that provides such person with a direct or indirect pecuniary interest. It may be possible for an access person to exclude accounts held personally or by immediate family members sharing the same household from the requirements of the Code of Ethics if the access person does not have any direct or indirect influence or control over the accounts (as further described herein), or can otherwise rebut the presumption of beneficial ownership over such family members' accounts. Access persons should consult with the CCO (or his designee) before excluding any accounts held by immediate family members sharing the same household from the obligations set forth herein.

A "reportable security" is considered to be any security, except that it shall not include (i) securities issued by the Government of the United States or an agency thereof (e.g., U.S. treasury bills and treasury bonds); (ii) money market instruments (*e.g.*, bankers' acceptances, bank certificates of deposit, commercial paper, repurchase agreements and other high quality short-term debt instruments); (iii) shares of money market funds; (iv) transactions and holdings in other open-end mutual funds or pooled vehicles (unless the Firm or a control affiliate acts as the investment adviser or principal underwriter for the fund); and (v) transactions in units of a unit investment trust ("UIT") if the unit investment trust is invested exclusively in unaffiliated mutual funds (collectively, "<u>Exempt Securities</u>").

As a technical manner, shares in UIT exchange-traded funds ("ETFS") are reportable securities, whereas shares in open-end exchange-traded funds are not, in accordance with the exclusion found in Rule 204A-1(e)(10)(iv) under the Advisers Act. However, for simplicity purposes under this Code of Ethics, shares in all ETFs should be treated as reportable securities.

The "purchase or sale of a security" includes, among other things, the writing of an option to purchase or sell a security.

"Employees" include all officers, employees and individual members of Polen Capital; Polen Credit; Polen UK and Polen HK. In addition, for purposes of this Code of Ethics, temporary employees including contractors, temps, and interns (collectively "contractors") will be deemed "Employees" on their 91<sup>st</sup> day of association with the Firm, calculated on a rolling 12-month basis, unless otherwise approved by the CCO (or his designee). For the avoidance of doubt, if based on their duties or job functions, a contractor meets the definition of an access person, they will be required to comply with the personal trading and reporting requirements and will be given a copy of the Code of Ethics.

Finally, the Compliance team maintains certain lists of current and prospective portfolio companies in which personal trading may be restricted, as further described in this Code of Ethics. These include the "Restricted List" and "Special Situations List" (which reflect public and private companies, respectively, in which the Firm may be in receipt of material non-public information) and the Coverage List (which reflects the companies that fall within the current Polen Capital coverage universe and accordingly may be temporarily in a "Blackout Period" due to client trading activity).

**Conflicts of Interest**

It is the policy of the Firm that supervised persons should be free from any direct or indirect interest, activity or entity that could possibly conflict with the interests of the Firm or its clients. Underlying this policy are two principles:

No supervised person should have, or acquire, any direct or indirect interest, activity or association, which influences or interferes with, or which might or could be thought to interfere with or influence the independent exercise of his or her judgment in the best interest of the Firm.

No supervised person should personally profit, or seek to profit, directly or indirectly, from opportunities or business information that are available to, or obtained by, him or her as a result of his or her position with the Firm.

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Direct or indirect interests include agency relationships, trusts, corporations, partnerships and interests held by family members.

**General Prohibition on Fraudulent Conduct**

No access person shall, in connection with the purchase or sale of a security, directly or indirectly:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Employ any device, scheme or artifice to defraud any client of the Firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Make to the Firm or any client of the Firm any untrue statement of a material fact or omit to state a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Engage in any act, practice or course of business which would operate as a fraud or deceit upon any client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Engage in any manipulative practice with respect to any client; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.Trade ahead of or in conflict with investment recommendations made by the Firm on behalf of any client.

**Personal Trading Practices**

The Code of Ethics contains detailed rules concerning personal securities transactions applicable to all Employees of the Firm. Certain laws and ethical standards impose duties on the Firm and its Employees to avoid conflicts of interest between employees' personal securities transactions and transactions by the Firm on behalf of its clients. Although it is not the Firm's intent to discourage trading by its Employees for long-term investment purposes, personal trading in reportable securities, in particular, can create (or simply give the appearance of creating) a conflict of interest in light of the Firm's investment management responsibilities to its clients. Accordingly, the Code of Ethics contains certain preclearance procedures, as well as certain prohibitions, with respect to personal securities transactions by Employees while at the same time preserving reasonable employee flexibility to manage their personal assets.

*Preclearance Procedures for Personal Securities Transactions*

In order to avoid conflicts of interest as well as the appearance of any impropriety, all purchases and sales of reportable securities in which an Employee has or will have a beneficial interest require preclearance pursuant to the procedures set forth herein, subject to any exceptions noted herein.

In an effort to implement a robust preclearance procedure, the Firm utilizes an automated employee trade preclearance system via a web-based compliance portal accessible to all Employees that is provided by ACA Group (the "<u>Compliance Vendor</u>"). <u>All Employees must pre-clear any non-exempt personal transactions in</u> **<u>reportable</u> <u>securities</u>** <u>through</u> <u>this</u> <u>web-based</u> <u>portal</u> <u>prior</u> <u>to</u> <u>their</u> <u>execution</u> <u>(</u>*<u>unless</u> <u>otherwise</u> <u>approved</u> <u>by</u> <u>the</u> <u>Chief</u> <u>Compliance</u> <u>Officer or his designee</u>*<u>)</u>. The Firm has programmed this automated preclearance system to incorporate the ongoing rules and other restrictions with respect to personal trading in reportable securities by Employees that are set forth herein. When in doubt as to whether a particular transaction requires preclearance, you should preclear the transaction or seek clarification from the Compliance team before placing a trade.

Accordingly, <u>prior to the execution of any non-exempt personal transaction in a reportable security</u>, an Employee must complete an online preclearance request via the web-based compliance portal.<sup>2</sup> Depending on the type of reportable security requested to be pre-cleared by the Employee and the then-current facts and circumstances, following completion of the preclearance request by an Employee, the Employee will be promptly notified (via the web-based portal) that the personal transaction has been either:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.*Approved*, in which case the Employee may then execute such transaction in his or her brokerage account(s); or

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.*Labeled as "Submitted"*, in which case the Employee must defer execution of the personal trade until the Compliance team has completed an independent review of the appropriateness of such transaction. By way of example, a preclearance request may be labeled as "*Submitted*" if the Firm has placed an issuer in which the Employee wishes to trade on its "Coverage List". Following review by the Compliance team (*e.g.*, to determine whether or not the Firm has placed such issuer in a "Blackout Period"), the transaction then will be either *Approved* (in which case the Employee may then proceed with execution) or *Denied* (with rationale provided, in which case the Employee may not proceed with execution).

**If a precleared transaction is not executed by the end of the second business day following the date on which preclearance is approved, the preclearance will expire, and the Employee must enter the request again into the web-based portal**. For the avoidance of doubt, if the effectiveness of an approval lapses for any reason, an Employee must submit a new request and receive another approval before such Employee may purchase or sell the reportable security. <u>Post-trade approval is not permitted under the Code of Ethics</u>.

The "gifting" of reportable securities (*e.g.*, as a charitable donation) held by an Employee or in which an Employee has a beneficial interest shall be considered a personal securities transaction of the Employee and accordingly shall be subject to the preclearance requirement as described above.

*Preclearance Exemptions for Certain Transaction Types*

You are not required to preclear any of the following types of transactions (even if the Security itself constitutes a reportable security and typically would not be exempt from preclearance):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Purchases and sales of securities that are non-volitional, including (i) purchases or sales upon the exercise of a put or call option where the purchase or sale is effected based on the terms of the option and without action by the access person or his or her agent (with it being noted that the initial writing of the option itself must be precleared); and (ii) automatic dividend reinvestments, acquisitions or dispositions of securities through stock splits, reverse stock splits, mergers, consolidations, spin-offs, or other similar corporate reorganizations or distributions generally applicable to all holders of the same class of securities (*e.g.*, corporate action events).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Open-end mutual funds or pooled vehicles where the Firm or a control affiliate acts as the investment adviser or principal underwriter for the fund.

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<sup>2</sup> In certain extenuating instances as further described herein, the Firm may permit an Employee to submit a manual preclearance request to the Chief Compliance Officer (or his designee) for review; such circumstances are addressed by the Chief Compliance Officer on a case-by- case basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ETFs and Exchange-traded Notes (ETNs), excluding single-stock ETFs and ETNs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Publicly-traded closed-end funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Sales as a result of a tender offer made available generally to all shareholders of the issuer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• State or municipal bonds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Listed index options and futures.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Investments in currencies (including options/swaps thereon).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Interests in qualified state college tuition programs ("529 Plans").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transactions effected pursuant to an automatic investment plan or transactions of reportable securities in accounts over which the access person had no direct or indirect influence or control,

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such as an account managed by an investment adviser on a discretionary basis (each, an "<u>Exempt Account</u>"). Any access person seeking to exempt an account managed by a third party from this requirement must submit a request in writing to the CCO (or his designee), who will, on a case-by-case basis, determine whether the plan or account qualifies for an exception. In making this determination, the CCO may ask for supporting documentation, such as a copy of the automatic investment plan, a copy of the discretionary account management agreement, and/or a written certification from the unaffiliated investment adviser. Further, the CCO may provide the access person with the exact wording and a clear definition of "no direct or indirect influence or control" that the Firm consistently applies to all access persons. Access persons who claim they have no direct or indirect influence or control over an account are also required to certify to this effect to the Firm on at least an annual basis.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Under certain circumstances involving instances in which an immediate family member receives or is offered an opportunity to acquire an equity interest in such person's employer (or an affiliate) as the result of a bona fide employment relationship (e.g., via an employee stock purchase program). The following principles apply in such circumstances: (i) transactions that are initiated by the employer of the immediate family member (for example, as part of the immediate family member's compensation from his/her employer) are exempt from the preclearance requirement; and (ii) transactions that are initiated by the immediate family member are subject to the preclearance requirement.

*Excessive or "Day" Trading Prohibited*

Employees should be aware that the preclearance process, among other things, imposes burdens on the compliance and, in certain cases, investment staff of the Firm. Moreover, Employees are strongly discouraged from excessive or "day" trading in their personal accounts, as they should be devoting substantially all of their time during the workday to performing their job responsibilities on behalf of the Firm. While the Firm has not established a maximum number of trades per month in reportable securities that an Employee is required to preclear, the purchase and sale, or sale and purchase, of a reportable security that is subject to the preclearance requirement (or its equivalent) within 60 calendar days is generally regarded as short-term trading and is not permitted. Furthermore, if the Chief Compliance Officer nonetheless determines that an Employee is making an excessive number of preclearance requests through the web-based compliance portal, he reserves the right to impose such a limitation on personal trading if it is believed to be in the best interest of the Firm and/or its clients. Under no circumstances will the Firm be responsible for any losses suffered by an Employee in their personal accounts as a result of a denial of consent to

trade in reliance on this provision. Each Employee should evaluate this risk before engaging in personal transactions in reportable securities that require preclearance.

*Blackout Period Restrictions*

Employees may not purchase or sell a reportable security when the proposed transaction would conflict with trading activity under consideration for a client (*e.g.*, a pending "buy" or "sell" order in such security). The beginning of such a Blackout Period with respect to any reportable security will be determined by the applicable portfolio manager(s) and will generally coincide with the onset of a "quiet period" for purposes of any related client communication. The ending of such a Blackout Period with respect to any reportable security will occur on the *second trading day* following the determination by the applicable portfolio manager(s) that all relevant trading activity on behalf of the Firm's clients has concluded, which will also generally coincide with the conclusion of the applicable "quiet period". A Blackout Period with respect to any reportable security will be programmed into the web-based compliance portal (and, accordingly, any requested trade preclearance with respect to the reportable security of an issuer in a Blackout Period will be denied by the Compliance team).

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*Front Running Prohibited*

Employees are prohibited from inappropriately using proprietary or confidential information obtained while associated with the Firm for their personal benefit. For example, no Employee shall engage in a personal securities transaction based on advance knowledge that the Firm is executing or will be executing a purchase or sale of the security on behalf of a client. This prohibition will not affect the execution of transactions for the account of a client in which one or more Employees has an economic interest (such as, for example, where an Employee owns shares of an investment fund managed by the Firm), which may be executed by the Firm in accordance with the Firm's trading practices.

*Transactions in Securities on Restricted List and Special Situations List Prohibited*

From time to time, employees may come into possession of non-public information about a particular company. The Compliance team may include such companies on the "Restricted List" or (with respect to private issuers with no publicly-traded securities) the "Special Situations List", and impose restrictions on transactions involving securities of those companies in client accounts as well as in the personal accounts of Employees. Employees are prohibited from knowingly engaging in any transactions for their personal accounts or for the accounts of others, including clients, that would be inconsistent with these restrictions.

Employees should be aware that the Firm may place an issuer on the Restricted List or the Special Situations List at any time without prior notice. Employees who purchase reportable securities of issuers that are later placed on the Restricted List or the Special Situations List, may, unless otherwise permitted by the Chief Compliance Officer (or his designee), be frozen in, or prohibited from trading, such holdings until such time as the issuer has been removed from the Restricted List or the Special Situations List, as applicable. The placement and removal of an issuer from the Restricted List or the Special Situations List will be determined by the Firm in its sole discretion. Under no circumstances will the Firm be responsible for any losses suffered by an Employee in their personal account(s) as a result of either placement of an issuer on the Restricted List or the Special Situations List, as applicable, or the denial of consent to trade. Each Employee should evaluate this risk before engaging in personal transactions in reportable securities.

*Approval required for Purchase or Sale of Fixed Income Securities of High Yield Issuers*

Employees may not purchase or sell, directly or indirectly, for his/her own account or any account in which such Employee has a Beneficial Interest, any fixed income securities that are rated Ba1 (by Moody's) or BB+ (by S&P) or below (or securities trading at yields comparable to the high yield market and high yield issuers) without the prior approval of the Chief Compliance Officer (or his designee).

Certain clients of the Firm pursue high yield fixed income strategies. Issuers of such high yield securities are typically more susceptible to a restructuring of their balance sheet, either through bankruptcy, prepackaged bankruptcy, or an out-of-court reorganization. The Firm may determine to purchase, on behalf of its clients, a significant enough position in the securities to enable the Firm to substantially influence or lead such a restructuring process. The purchase or sale of such fixed income securities of such issuers by Employees may potentially conflict with various investment objectives of clients pursuing such a high yield fixed income strategy.

Accordingly, in order to avoid a conflict of interest or the appearance of a conflict of interest, the Firm intends to deny preclearance for any personal trade of high yield fixed income securities. Such preclearance may be denied irrespective of whether or not the Firm has placed at such time a pending "buy" or "sell" order in the same security and irrespective of whether or not any client holds such security in its portfolio at such time. As a result, Employees should have no expectation of purchasing high yield fixed income securities in their personal brokerage accounts.

*Approval Required for Participation in Initial Public Offerings, Private Placements and other Limited Offerings*

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The Chief Compliance Officer (or his designee) must pre-approve in writing any investment by an access person in an initial public offering ("IPO"), private placement or other limited offering.

In determining whether to give approval with respect to such a transaction, the Chief Compliance Officer will consider, as applicable, whether it is possible (and appropriate) to reserve that investment opportunity for one or more clients, as well as any regulatory concerns related to FINRA's "new issue" rules, including whether the opportunity to invest in the transaction has been offered as a favor or a gift to the Employee (*e.g.*, as a *quid pro quo*) or as compensation for services rendered. Notwithstanding the foregoing, employees may invest in private funds sponsored by Polen Capital or Polen Credit through the regular subscription process and need not seek separate prior approval from the CCO.

*Duty to Disclose*

Employees who have a beneficial interest in a particular security or who have decided to execute a personal transaction of a material nature in such a security for any account in which such Employee has a beneficial interest must disclose this information in the course of any communication regarding the security or the issuer with the applicable portfolio manager(s) or other senior investment personnel involved in evaluating such an investment opportunity on behalf of the Firm's clients. This protocol will facilitate a high degree of transparency as well as minimize the risk that the Firm fails to identify a conflict of interest that may create the appearance of impropriety when providing investment advice for its clients.

**Cryptocurrency**

The status of crypto currencies, digital coins or tokens, and related products is still being analyzed by the SEC and other interested parties. Certain types of transactions involving crypto currencies are likely to be reportable under the Code of Ethics (*e.g.*, purchasing interests in an investment trust that mines crypto currencies) and require

preclearance, while other transactions are permitted without otherwise requiring preclearance. In the case of uncertainty, Employees should preclear transactions involving crypto currencies that may constitute a "reportable security" hereunder in order to ensure that they are not inadvertently failing to report a securities transaction under the Code of Ethics (or otherwise consult with the Chief Compliance Officer prior to executing such transaction).

**Reporting Obligation**

*Electronic Data Transmission to Compliance Vendor*

With the exception of Exempt Accounts, Employees are required to report to the Firm all accounts in which reportable securities can be purchased or sold and in which an Employee has a beneficial interest. It is imperative that each Employee report such accounts so that the Firm can instruct the broker for such accounts to establish a direct electronic data feed directly with the Compliance Vendor.<sup>3</sup> Such electronic feed will provide the Compliance Vendor with a record of each personal securities transaction by Employees, thereby enabling the Compliance team to verify compliance with the preclearance procedure with respect to personal trading set forth herein.

Employees should use their reasonable efforts to maintain their personal brokerage accounts with brokers that provide an electronic data feed to the Compliance Vendor. If an Employee maintains an account at a brokerage firm that does not provide transaction and holdings information to the Compliance Vendor electronically or is otherwise not on an approved list of brokers maintained by the Compliance team, the Firm, in its sole discretion, may require the Employee to close such brokerage account, and transfer (or otherwise liquidate) any reportable securities held therein to an account established at one of the approved brokers as designated by the Chief Compliance Officer. In extenuating circumstances where the Firm permits an Employee to maintain a brokerage account at a broker (or other third party) that is unable to establish an electronic data feed directly with the Compliance Vendor, the Chief Compliance Officer may require such

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Employee to attach duplicate brokerage confirmations or monthly statements within the web-based compliance portal provided by the Compliance Vendor so that the Firm can confirm compliance with the provisions of this Code of Ethics. In such instances, the Chief Compliance Officer will also establish with such Employee a manual procedure with respect to the preclearance of any trades of reportable securities within such account.

In order to enable the Firm to verify that an electronic data feed to the Compliance Vendor (or other manual reporting process) is established for all employee brokerage accounts, each Employee, upon commencement of employment with the Firm, is required to report all such accounts to the Chief Compliance Officer. Furthermore, within 15 days of the date on which an account is added or deleted, each Employee is required to update the Chief Compliance Officer with such information. Employees are not otherwise permitted to execute personal transactions in reportable securities in newly-established brokerage accounts until the electronic data feed to the Compliance Vendor has been established (or the Chief Compliance Officer has otherwise approved of a manual trade preclearance process on an interim or permanent basis).

Finally, each Employee will be required to certify annually, via the web-based compliance portal no later than January 30<sup>th</sup> of each year, that the list of brokerage accounts that has been previously reported to the Firm remains complete and accurate.

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<sup>3</sup> Notwithstanding the foregoing, the Firm requests that Employees also establish, to the extent possible, electronic data feeds with respect to any Exempt Accounts to better enable the Compliance team to conduct periodic compliance reviews with respect to the holdings within such accounts.

*Report of Personal Holdings Upon Commencement of Employment and Annually Thereafter*

A complete report of each access person's reportable securities holdings is required at the time the person becomes an access person (no later than 10 days after the person becomes an access person) and again no later than January 30<sup>th</sup> of each year. Such report should be entered into the web-based compliance portal. The holdings report must be current as of a date not more than 45 days prior to the individual becoming an access person (with respect to the initial report) or the date the report is submitted (with respect to the annual report). Each holdings report must contain, at a minimum:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The title and type of security, and as applicable the exchange ticker symbol or CUSIP number, number of shares and/or principal amount of each reportable security in which the access person has any direct or indirect pecuniary interest;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The name of any broker, dealer or bank with which the access person maintains an account in which any securities are held for the access person's direct or indirect benefit; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.The date the access person submits the report.

For the avoidance of doubt, Employees should reflect in such reports any personal holdings in mutual funds or UCITS funds advised by Polen Capital, Polen Credit, Polen UK or Polen HK.

*Quarterly Transaction Report*

Quarterly reports are required of all personal transactions of reportable securities by access persons, which are due no later than 30 days after the close of the calendar quarter. Each transaction report, which shall be submitted via the web-based compliance portal, must contain, at a minimum, the following information about each transaction involving a reportable security in which the access person had, or as a result of the transaction acquired, any direct or indirect beneficial ownership:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The date of the transaction, the title, and as applicable the exchange ticker symbol or CUSIP number, interest rate and maturity date, number of shares, and principal amount of each reportable security involved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The nature of the transaction (i.e., purchase, sale or any other type of acquisition or disposition);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.The price of the security at which the transaction was effected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.The name of the broker, dealer or bank with or through which the transaction was effected; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The date the access person submits the report.

For the avoidance of doubt, Employees should reflect in such reports any personal transactions in mutual funds or UCITS funds advised by Polen Capital, Polen Credit, Polen UK or Polen HK.

*Exemptions for Certain Securities and Securities Held in Certain Accounts*

Notwithstanding the reporting provisions set forth above, Employees need not provide initial or annual holdings reports or quarterly transaction reports regarding the following types of securities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Holdings of Exempt Securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Holdings within an Exempt Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Limited partnership (or other similar) interests in Firm-sponsored private investment vehicles acquired by an Employee. Given that the Firm and/or an administrator engaged by the Firm separately maintains

investor lists and transaction records for such investments, such transactions do not need to be separately reported via the web-based compliance portal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Holdings within the Firm-sponsored 401(k) plan (to the extent that such holdings would have otherwise been reported as reportable securities).

**Requirement to Preserve Confidentiality**

Each Employee shall keep confidential during the term of his or her employment or association with the Firm any information concerning the Firm or its clients that is not generally known to the public, including, but not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the investment strategies, processes, analyses, databases and techniques relating to capital allocation, stock selection and trading used by the investment team or other investment professionals employed by the Firm;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• the identity of and all information concerning clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• information prohibited from disclosure by a client's policy on release of portfolio holdings or similar policy; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• all other information that is determined by the Firm or a client to be confidential and proprietary and that is identified as such prior to or at the time of its disclosure to the Employee.

No Employee shall use such confidential information for his or her own personal benefit or for the benefit of any third party, or directly or indirectly disclose such information, except to other Employees of the Firm and third parties to whom disclosure is made pursuant to the performance of his or her duties as an Employee of the Firm; as otherwise may be required by law; or when reporting a possible violation of federal law or regulation to any governmental agency or making any disclosures that are otherwise protected under the whistleblower provisions of applicable federal law or regulation. This obligation of confidentiality

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is in addition to any other Firm policies relating to confidentiality and confidentiality agreements with the Firm to which an Employee is a party.

**Outside Business Activities**

Each Employee is expected to devote his or her full time and ability to the Firm's interests during regular working hours and such additional time as may be properly required in order to perform his or her job responsibilities. Accordingly, the Firm discourages employees from holding outside employment, including any consulting arrangements, as such engagements may detract from an employee's ability to devote the necessary time and attention to his/her work responsibilities at the Firm.

Specifically, an Employee may not engage in outside employment that: (a) interferes, competes, or conflicts with the Firm's interests; (b) encroaches on normal working time or otherwise impairs performance; (c) implies sponsorship or support of an outside organization by the Firm; or (d) reflects directly or indirectly adversely on the Firm. For the avoidance of doubt, this policy also strictly prohibits outside employment in the securities brokerage industry. Furthermore, Employees must abstain from negotiating, approving or voting on any transaction between the Firm and any outside organization with which they are affiliated, whether as a representative of the Firm or the outside organization, except in connection with their providing services to the Firm in the ordinary course of business and on a fully disclosed basis with the approval of the Chief Compliance Officer.

Employees will be required to certify their compliance with this policy on an annual basis through the web- based compliance portal.

**Services as a Board Director, Board Member, Manager, Managing Member or Trustee**

Service as a member on a board of directors or trustees, a manager or a managing member or in a similar capacity exercising control of any business organization (including an advisory board) poses several forms of potential conflicts for employees. These include potentially conflicting fiduciary duties owed to the company and to the Firm's clients, the possible receipt of material, non-public information, and conflicting demands imposed on the time of the Employee. Accordingly, no Employee may serve in such capacity without the prior approval from the Chief Compliance Officer. Approval will generally not be granted unless it is determined that such services would be in, or would not otherwise conflict with, the best interests of the Firm's clients.

If an Employee is serving as a board member, officer, manager, managing member or in a similar control capacity of any organization, the employee should be mindful of his or her responsibilities under the Code of Ethics and his or her agreements with the Firm, and should seek to avoid any appearance of impropriety. In particular, such Employees are reminded of their obligations not to misuse confidential information belonging to the Firm or any client.

From time to time, an Employee may receive approval to serve on the board of directors of a portfolio company in the course of such employee's employment activities with the Firm. Such an employee may not retain any compensation (whether in the form of cash, stock options, shares of restricted stock or other non-cash compensation) received for services on the boards of directors of such issuers, and in such instances, it is the Employee's responsibility to inform the Chief Compliance Officer (or his designee) of his or her receipt of any such compensation and the terms thereof so that the Chief Compliance Officer may assess how the situation should be handled in a manner consistent with the Firm's disclosures (and fiduciary obligations) to its clients. In addition, such employee will be subject to additional procedures designed by the Firm to mitigate any actual or potential conflict of interest with the Firm's clients.

**Review and Enforcement**

The Chief Compliance Officer shall review all reported personal securities transactions to determine whether a violation of this Code of Ethics may have occurred. This includes reviewing for reports or trades

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reported late, incomplete quarterly/annual reports, and trades conducted in violation of the Code of Ethics, such as preclearance. Before making any determination that a violation has been committed by any person, the Chief Compliance Officer shall give such person an opportunity to supply additional explanatory material.

Review of personal securities holding and transaction reports will also include comparison of such personal trading to any Firm-maintained restricted lists (*e.g.,* Restricted List or Coverage List); assessment as to whether the access person is trading for his or her own account in the same securities such individual is trading for clients, and if so whether the clients are receiving terms as favorable as the access person takes for himself or herself; and periodically analyzing the access person's trading for patterns that may indicate abuse, including market timing.

Compliance with the Code of Ethics is a basic condition of employment. All disciplinary responses to violations of the Code of Ethics shall be administered by the Chief Compliance Officer, in consultation with other senior personnel of the Firm, as appropriate. Such disciplinary response may entail warnings (orally or in writing), additional training sessions regarding the policies and procedures violated, suspension of personal trading privileges, a reversal of any improper transaction, fines, diminution or loss of bonus, demotion, suspension or dismissal. In all

cases, such disciplinary response shall be based on the applicable facts and circumstances, which may include, but are not limited to, the following: (i) the nature of the violation; (ii) whether the failure to obtain preclearance was inadvertent; (iii) whether the Employee had a reasonable basis for believing that preclearance was not necessary with respect to the particular transaction in question; (iv) whether the Employee made a good faith effort to comply with the preclearance requirement; (v) whether the Employee has violated the requirements of the Code of Ethics in the past; (vi) the size of the transaction; (vii) the timing of the transaction, and whether clients were buying, selling, or considering the purchase or sale of such Securities at the time of the Employee's transaction; (viii) whether the Employee's transaction was executed prior to or after transactions by clients; (ix) whether the Employee's transaction was in the same direction as that of clients (*e.g.*, buying when clients were buying), or whether it was in the opposite direction (*e.g.*, selling when clients were buying); (x) the length of time between the Employee's trade and any trade on behalf of a client; (xi) whether there has been unusual market activity in the Security; and (xii) the type of Security and transaction (*e.g.*, fixed income compared with equity securities). In addition, Employees who fail to obtain appropriate preclearance for a personal transaction in Securities may be required to cancel such trade at their own cost and expense.

Violations under the Code of Ethics also may be subject to client reporting obligations. In addition, the Firm may report conduct believed to violate the law or regulations applicable to the Firm or its access persons to the appropriate regulatory authorities.

**Records**

The Firm shall maintain records in the manner and to the extent set forth below and will make them available for examination by representatives of the SEC or other supervisory authority<sup>4</sup>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.A copy of this Code of Ethics and any other code which is, or at any time within the past five (5) years has been, in effect shall be preserved in an easily accessible place;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.A record of any violation of this Code of Ethics and any action taken as a result of such violation shall be preserved in an easily accessible place for a period of not less than five (5) years following the end of the fiscal year in which the violation occurs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.A copy of each supervised person's written acknowledgment of receipt of this Code of Ethics for a period of five (5) years;

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.A copy of each report made by an access person pursuant to this Code of Ethics shall be preserved for a period of not less than five (5) years from the end of the fiscal year in which it is made, the first (2) two years in an easily accessible place;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.A record of any decision within the past five (5) years approving an access person's acquisition of securities in IPOs and limited offerings; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.A list of all persons who are, or within the past five (5) years have been, required to make reports pursuant to this Code of Ethics shall be maintained in an easily accessible place.

__________________

<sup>4</sup> Under the Advisers Act, many required records must be kept for five years after the end of the fiscal year in which the record was created or last altered. The Hong Kong Securities and Futures Commission requires certain Polen HK records to be kept for seven years or longer. Please see Annex E for details.

In addition, the Firm shall maintain a record of the names of persons who are currently, or within the past five years were, access persons of the Firm.

**Code of Ethics Training; Acknowledgments**

The Firm will provide to each Employee a copy of this Code of Ethics and any amendments. On an annual basis, each Employee must certify that such individual has read, understands, and has complied with the Code. In addition, each time the Code of Ethics is amended, each Employee must certify that such individual has read and understands the Code of Ethics (as amended). The Chief Compliance Officer (or his designee) is responsible for verifying that all Employees acknowledge the Code of Ethics in this manner.

The Chief Compliance Officer is also responsible for providing Employees adequate training on the principles and procedures of this Code of Ethics, such as periodic orientation or training sessions with new and existing staff to remind them of their obligations under the Code.

**Hardship Exemption**

Employees who experience unanticipated difficulties that necessitate the need to liquidate a securities holding or any other act that contradicts the above mentioned policies must seek prior written approval of the CCO (or a designee) before executing any transaction that would violate the above mentioned policies. Exemptions, which will be documented in writing, will be decided on a case-by-case basis and the Firm provides no assurance that an exemption will be granted.

**Compliance Reporting**

On an annual basis in connection with the requirements of Rule 17j-1 promulgated by the Securities and Exchange Commission under the Investment Company Act of 1940, as amended, the Chief Compliance Officer shall provide to the board of trustees or directors of each client that is registered as an investment company under the Investment Company Act of 1940, as amended, a written report that (a) describes any issues arising under the Code of Ethics, including any material violations of the Code of Ethics, as well as any procedures and/or sanctions imposed in response to such material violations, and (b) certifies that Polen Capital or Polen Credit (as applicable) has adopted procedures reasonably necessary to prevent its Employees from violating the Code of Ethics.

**Gifts and Business Entertainment Policy**

The Firm, its supervised persons and members of supervised persons' families should not accept gifts, gratuities or other items of value from or give gifts, gratuities or other items of value to an individual or organization with whom the Firm has a current or potential business relationship directly related to its advisory business ("<u>Business</u> <u>Relationship</u>"), which might in any way create a conflict of interest or appearance of impropriety, or which would be likely to influence decisions made by the supervised person in

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business transactions involving the Firm. The prohibition does not apply to occasional dinners, sporting, concert or customary entertainment events and other activities, which are part of a business relationship, provided that they fall in line with the guidelines identified below. Further, personal contacts may lead to gifts of a purely nominal value, which are offered on the basis of friendship and may not raise concerns related to conflicts of interest or otherwise influence a supervised person's decisions.

Supervised persons should use good judgment to avoid any gifts, gratuities or other items of value that place the Firm in a difficult, embarrassing or conflict situation with its advisory clients. Supervised persons should discuss any questions they may have regarding gifts, gratuities or other items of value with the Compliance team prior to

accepting such item. Only the Chief Compliance Officer (or an authorized designee) is authorized to grant waivers of this policy.

The following outlines the Firm's policy on giving and receiving gifts and entertainment and is applicable to all officers, members and supervised persons of the Firm. As a general rule, the Firm aggregates all gifts and entertainment given or received on a calendar year basis.

*Gift Giving*

**Overall Principles:** It is acceptable for Employees to give gifts or favors of nominal value to individuals or organizations with whom the Firm has established a Business Relationship to the extent that they are appropriate and suitable under the circumstances and meet the standards of ethical business conduct. Likewise, Employees should not offer or provide gifts or favors that may be viewed as overly generous or excessive; aimed at influencing a decision- making individual; or otherwise intended to have the effect of a recipient feeling obligated to provide business or other forms of compensation in return. As an example, providing meals and other forms of entertainment customary within the financial services industry (*e.g.*, one-on-one golf outings or sporting events) to individuals or organizations with whom the firm has a Business Relationship that is reasonable and appropriate in light of the circumstances is permitted.

**In general, gift giving is limited to $100:** Neither you nor members of your immediate family may give any gift, series of gifts or other thing of value ("<u>Gifts</u>") in excess of $100 per year to any client or any one person or entity that does or seeks to do business with or on behalf of the Firm. Furthermore, as a general guideline, if the Gift would not be permitted to be received by an Employee pursuant to this Code of Ethics, then the Employee should not provide such Gift to a third party. In any event, the provision of any Gift that exceeds the $100 threshold set forth above or that otherwise may not be reasonable in light of the facts and circumstances should be first precleared with the Chief Compliance Officer (or his designee) <u>via the web-based compliance portal</u>.

**ERISA-regulated and governmental organizations:** *Notwithstanding the principles and provisions set forth above*, Employees should be aware that many organizations, including certain ERISA-regulated entities (including Taft-Hartley plans) as well as governmental entities and agencies that may also be clients of the Firm, have their own rules prohibiting or limiting the type and amount of Gifts as well as entertainment that their employees can receive (including, for these purposes, reimbursements in connection with attendance at educational and training seminars and similar events).<sup>5</sup> Although the principles set forth above apply in these circumstances as well, if an Employee is uncertain with respect to the rules applicable to a particular organization with whom the Firm has a Business Relationship, the Employee should first consult with the Chief Compliance Officer (or his designee) prior to giving a Gift or entertainment to an employee or other representative of such organization.

**Prohibitions:** You are prohibited from (i) giving cash, making loans and providing personal services or special discounts on behalf of the Firm, even if these fall within the above dollar limits; and (ii) giving a Gift if the Gift could be seen by others as engaging in bribery or a consideration for a business favor.

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__________________

<sup>5</sup> Technically, there is no *de minimis* exception to the restrictions on a fiduciary's receipt of consideration from a person dealing with an ERISA-regulated entity. However, the DOL has provided guidance that gifts and entertainment provided to a fiduciary from one individual or entity that have an annual value of less than $250 (and that do not violate any plan policy or provision) are considered "insubstantial" and are generally not treated as violations. In addition, ERISA-regulated entities are subject to strict rules with respect to the reimbursement of expenses incurred in attending educational and/or training seminars.

**Charitable Contributions:** You are required to receive advance approval from Compliance before making a charitable contribution on behalf of a client or financial intermediary. Approval is granted only when it is clear that the contribution is being made by the Firm. You are required to notify the CCO (or his designee) about any actual or apparent conflict of interest in connection with any charitable contribution, or with respect to any contribution that could give an appearance of impropriety.

*Gift Receiving*

**In general, receipt of gifts is limited to $100:** Neither you nor members of your immediate family may receive any Gift(s) the value of which is estimated to exceed $100 per year from any single Business Relationship. You may accept a token gift only when the value involved is not material and clearly will not place you under any real or perceived obligation to the donor. Gifts are considered material in value if they influence or give the appearance of influencing the recipient. In the event the aggregate fair market value of all Gifts received by you from any single Business Relationship is estimated to exceed $100 per year, you must immediately notify the Compliance team.

**Prohibitions**: (i) You are prohibited from receiving cash, loans or personal services or special discounts unless such personal services or special discounts is pre-approved by Compliance; and (ii) the solicitation of Gifts is prohibited (*i.e., you may not request a Gift, such as tickets to a sporting event, be given to you).*

**Travel Expenses:** In general, the Firm must pay for all travel and lodging expenses. For example, when a supervised person is invited to tour a company's facilities or meet with representatives of a company, the Firm, and not the portfolio company, must pay for your travel and lodging expenses. A Business Relationship may pay for travel amenities that are not readily ascertainable or are considered insubstantial (i.e., a shared cab fare). Any exceptions must be approved by the Chief Compliance Officer (or his authorized designee).

**Conferences and Industry Events:** The Firm supervised persons may be requested to speak at industry conferences and events. In some situations, the speech or appearance involves travel, lodging, entertainment or other customary speaker amenities (Business Accommodations). If the Business Relationship offers to pay for all or a portion of the Business Accommodations and the amount exceeds the limits set forth in the Gift and Entertainment Policy, you are required to have the payment pre-approved by Compliance.

*Business Entertainment*

In general, entertainment is not considered a Gift so long as such entertainment is business related (*e.g.*, if you are accepting tickets to a sporting event, the offerer must go with you), reasonable in cost, appropriate as to time and place, and neither so frequent nor so costly as to raise any question of impropriety. (Entertainment includes items such as a ticket to a sporting event or the theater, greens fees, an invitation to a reception or cocktail party or other comparable entertainment). For the avoidance of doubt, entertainment that you receive requires the offerer's attendance, and entertainment that you offer requires your attendance, and in either case is subject to:

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Maximum of $300 value per supervised person, and, if applicable, maximum of $600 value for the supervised person and the supervised person's guest per single outing. The limits apply to the total market value cost (not face value) of the outing, including meals, travel (e.g., airfare/hotels/cars), sporting events, limo rides, etc.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Aggregate value per year of all such benefits may not exceed $1,200 per Business Relationship.

Like the requirement set forth above with respect to the giving and receiving of Gifts, any entertainment that exceeds the threshold set forth above or that otherwise may not be reasonable in light of the facts and circumstances should first be precleared with the Chief Compliance Officer (or his designee) via the web-based compliance portal.

*Gifts and Business Entertainment Reporting*

For reporting purposes, in general any Gift or entertainment in excess of $50 in value from or given to a single Business Relationship <u>must</u> be reported. However, Gifts or entertainment falling below this threshold may also be deemed inappropriate by the Chief Compliance Officer (or his designee) based on facts and circumstances. Accordingly, Employees are encouraged to report in advance all Gifts or entertainment received from or given to various Business Relationships, irrespective of value or any perceived conflict of interest (with the exception of normal and customary business meals, which are excluded from this reporting requirement). For the avoidance of doubt, each Employee should immediately report, <u>via</u> <u>the</u> <u>web-based</u> <u>compliance</u> <u>portal</u>, any offer of any Gift or entertainment that may, in the reasonable judgment of such Employee, create an appearance of impropriety or a conflict of interest.

In addition, all Employees must submit, via the web-based compliance portal, a quarterly gifts and entertainment report, certifying all Gifts and entertainment received for the previous calendar quarter and that are required to be reported under the Code of Ethics. The Compliance team will maintain a comprehensive record of all reported gifts and entertainment (including any planned business-related entertainment).

The misrepresentation by an Employee of any gift or entertainment, or the failure to pre-clear or report the receipt of any Gift or the participation in entertainment, is a serious breach of the Code of Ethics and grounds for termination. The Firm takes its fiduciary obligations with respect to its clients very seriously, and expects that its Employees do so as well.

## Ex-99.(P)(22)

**Post Advisory Group**

**Code of Ethics**

***February 2025***

**I.INTRODUCTION**

Post Advisory Group, LLC ("Post") has adopted this Code of Ethics (the "Code"). The principal objectives of the Code are to provide policies and procedures consistent with applicable laws and regulations, including Rule 204A-1 under the Investment Advisers Act of 1940 and Rule 17j-1 of the Investment Company Act of 1940. These regulations require registered investment advisers to adopt the Code to set forth standards of conduct expected of Supervised Persons, safeguard material non-public information about client transactions, and require "Access Persons" to report their personal securities transaction. Post, as a fiduciary to our clients and investors, must also prevent conflicts of interests, or the appearance of such conflicts, when Employees own or engage in transactions involving securities.

The Code is based upon the principle that Post and its supervised persons have a fiduciary obligation to conduct their own affairs, including personal securities transactions, in such a manner as to not only comply with applicable federal securities laws, but to place their clients' interests ahead of their own and to avoid any potential conflicts of interest or any abuse of their position of trust and responsibility.

The requirements of this Code are in addition to and do not replace an Employee's obligations to comply with Post's Code of Conduct and other Post policies and procedures. Additionally, Employees of Post are also subject to the Corporate Code of Conduct of Post's ultimate parent organization ("PFG").

Responsibility for this Code is overseen by the Chief Compliance Officer (CCO). However, the responsibility for implementing this Code falls on all Employees and especially staff who are in supervisory and management roles.

**II.CORE REQUIREMENTS OF THE CODE OF ETHICS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.STATEMENT OF GENERAL PRINCIPLES**

Post's Clients and Fund Investors have placed a high level of trust and confidence with Post. In return, Post holds itself and its employees to the highest ethical standards. The following are Post's guiding principles:

Clients' interests are paramount. You must place client and investor interests before your own.

Always act in an honest and ethical manner, including in connection with, and the handling and avoidance of, actual or potential conflicts of interest between personal and professional relationships.

You must accomplish all personal securities transactions in a manner that avoids an actual conflict or even the appearance of a conflict of your personal interests with those of Post's clients, including Fund investors.

You must avoid actions or activities that allow (or appear to allow) you or your immediate family to profit or benefit from your position with Post, or that bring into question your independence or judgment.

You must comply with all applicable federal and state securities laws, including the prohibitions against the misuse of material nonpublic information, in conducting yourself and the operations of Post.

Always maintain the confidentiality of information concerning the identity of security holdings and financial circumstances of clients.

Proactively promote ethical and honest behavior with Post, including, without limitation, the prompt reporting of violations of, and being accountable for adherence to, this Code.

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When dealing with Clients, Post Employees should fully disclose all material facts concerning any conflicts of interest that exist or arise. A conflict of interest may arise when a person or firm has an incentive to serve one interest at the expense of another interest or obligation. Examples of conflicts may include acting on an investment opportunity for oneself instead of the client, or accepting a gift that could influence an investment decision. Post has a broader Conflicts of Interest Policy that covers some of these conflicts in more detail.

The Code does not attempt to identify all possible conflicts of interests, and literal compliance with each of its specific provisions will not shield supervised and/or advisory personnel from liability for personal trading or other conduct that violates a fiduciary duty to Post's clients or Fund investors.

There are eight broad categories covered by this Code:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Confidential Information

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Other Employee Conduct

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Outside Business Activities

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Material Non-Public Information

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.Anti-Corruption

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.Gifts and Entertainment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.Personal Disciplinary History and Disqualifying Events

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.Personal Securities Transactions and Reporting

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.CONFIDENTIAL INFORMATION**

Post Employees shall respect the confidentiality of information acquired in the course of their work and shall not disclose such information, except when they believe they are authorized or legally obliged to disclose the information. Post Employees may not use confidential information acquired in the course of their work for their personal advantage. Post Employees must keep all information about Clients (including former clients) in strict confidence, including the Client's identity (unless the Client consents), the client's financial circumstances, the client's security holdings, and advice furnished to the Client by Post. Post has developed policies, including a ***Written Information Security Program*** and a ***Privacy Policy***, which are separate policies to this Code. Employees are required to report to their supervisor or Compliance any suspicious or unauthorized use of Client or employee non-public personal information or non-compliance with the privacy program by employees of Post.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.OTHER EMPLOYEE CONDUCT**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**1.Personal Financial Responsibility:** It is important that Employees properly manage their personal finances, particularly in matters of credit. Imprudent personal financial management may affect job performance and lead to more serious consequences for Employees in positions of trust. In particular, Employees are not permitted to borrow from Clients or from providers of goods and services with whom Post deals, except those who engage in lending in the usual course of their business and then only on terms offered to others in similar circumstances, without special treatment.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**2.Taking Advantage of a Business Opportunity that Rightfully Belongs to Post:** Employees must not take for their own advantage an opportunity that rightfully belongs to Post. Whenever Post has been actively soliciting a business opportunity, or the opportunity has been offered to it, Post's funds, facilities or personnel have been used in pursuing the opportunity, that opportunity rightfully belongs to Post and not Employees who may be in a position to divert the opportunity for their own benefits.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.** &nbsp;&nbsp;&nbsp;&nbsp;**OUTSIDE BUSINESS ACTIVITIES**

Access Persons must not undertake other business activities outside of Post which may cause, or appear to cause, conflicts of interest. Access Persons must request approval from Compliance for all outside business activities where Access Persons either have a controlling or influencing position or receive monetary compensation for their involvement in that business. Approval can be requested through PTA.

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Access Persons are prohibited from serving on the board of directors of any public company or any organization, trust, endowment or other organization whether publicly listed, charitable or educational in nature, or otherwise where they will gain financial information or participate in the investment decisions of the organization unless prior approval is granted.

Compliance approval is based on a determination that board service would be consistent with the interests of Post and its clients. Compliance may determine that such involvement in additional business is an actual or perceived conflict of interest. In this situation, action will be taken to rectify the conflict.

Please see Post's ***Conflicts of Interest Policy*** for more details related to reporting an Outside Business Activity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.MATERIAL NON-PUBLIC INFORMATION**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Confidential Client Information

In the course of normal business activities, Post Employees may receive confidential information concerning clients and potential clients. To maintain client confidence and trust, this information must be handled with integrity and discretion. A judgment concerning who needs to know about particular client information depends on the facts and circumstances and should be discussed by the Employee with his or her supervisor as appropriate. In the event confidential client information is communicated, the recipient of the information should be advised of its confidential nature, that it is given solely for the purpose of fulfilling his or her responsibilities with the client, and that it is not to be disclosed in any other form to any other person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Material Non-Public Information

As a result of the instruments in which Post trades, Post Employees will receive material, non-public information on companies from time to time. Please see Post's separate ***Insider Trading Policy*** for the full policies and procedures around MNPI.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F.ANTI-CORRUPTION** 

Post is bound by the US Foreign Corrupt Practices Act. As a result, all Post Employees are prohibited from:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Offering, promising, giving or receiving anything of value to encourage or reward activity;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Entering into "off the book" transactions or false, misleading, or artificial entries in the books and records of the company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Making "facilitation" or "grease" payments;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Giving political contributions with the intent to influence obtaining or retaining business.

Additionally, Post is bound by standard securities and anti-manipulation rules. As a result, in connection with the purchase or sale, directly or indirectly, of a security held or to be acquired by a Client, Post Employees are not permitted to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Employ any device, scheme or artifice to defraud a Client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Make to a Client any untrue statement of a material fact or omit to state to a Client a material fact necessary in order to make the statements made, in light of the circumstances under which they are made, not misleading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Engage in any act, practice or course of conduct that operates or would operate as a fraud or deceit on a Client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Engage in any manipulative practice with respect to a Client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Engage in any manipulative practice with respect to securities, including price manipulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Favor the interest of one Client over another Client; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Engage in front running, and/or profit personally, directly or indirectly, as a result of knowledge about a security or transaction.

Please see Post's ***Anti-Market Manipulation Policy*** for more details.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G.GIFTS AND ENTERTAINMENT**

Post is committed to ensuring that Post Employees do not attempt to improperly influence Clients or prospective Clients with gifts or business entertainment and are not unduly influenced by the receipt of gifts or business entertainment. It is important for Post Employees to keep in mind that these activities may create the appearance of a conflict and in certain cases may implicate regulations applicable to Clients and Post. Similarly, accepting gifts or business entertainment is improper when it would compromise, or could be reasonably viewed as compromising, a Post Employee's ability to make objective and fair business decisions.

Please see Post's ***Gifts and Entertainment Policy***.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**H.PERSONAL DISCIPLINARY HISTORY AND DISQUALIFYING EVENTS**

Section 203(e) of the Advisers Act mandates that Post has a duty to supervise its Employees. Should an officer, director, officer or employee of Post have certain disqualifying events within the past ten years or during the course of employment, Post may no longer be able to qualify as a registered investment adviser with the SEC and may also have certain notification provisions to its Clients. The following are the disqualifying events and **all Employees are required to notify the CCO immediately** if the Employee is subject to any one or more of these events or is unsure if the Employee may be subject to any one or more of these events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.Has willfully made or caused to be made in any application for registration or report required to be filed with the SEC, or in any proceedings before the Commission with respect to registration, any statement which was at the time and in light of the circumstances under which it was made false or misleading with respect to any material fact, or has omitted to state in any such application or report any material fact which is required be stated therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.Has been convicted of any felony or misdemeanor or of a substantially equivalent crime by a foreign court of competent jurisdiction

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.involving the purchase or sale of any security, the taking of false oath, the making of a false report, bribery, perjury, burglary, any substantially equivalent activity however denominated by the laws of the relevant foreign government, or conspiracy to commit any such offense;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Arises out of the conduct of the business of a broker, dealer, municipal securities dealer, investment adviser, bank insurance company, government securities broker, government securities dealer, fiduciary, transfer agent, credit rating agency, foreign person performing a function substantially equivalent to any of the above, or entity or person required to be registered under the Commodity Exchange Act or any substantially equivalent statute or regulation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Involves the larceny, theft, robbery, extortion, forgery, counterfeiting, fraudulent concealment, embezzlement, fraudulent conversion, or misappropriation of funds or securities or substantially equivalent activity however denominated by the laws of the relevant foreign government; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Involves the violation of section 152, 1341, 1342, of 1343 or chapter 25 or 47 of title 18, or a violation of substantially equivalent foreign statute.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.Has been convicted of any crime that is punishable by imprisonment for 1 or more years, and that is not described in paragraph (ii); or a substantially equivalent crime by a foreign court of competent jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.Is permanently or temporarily enjoined by order, judgment, or decree of any court of competent jurisdiction, including any foreign court of competent jurisdiction, from (i) acting as an underwriter, broker, dealer, investment adviser, municipal securities dealer, government securities dealer, transfer agent, or credit rating agency, foreign person performing a function substantially equivalent to any of the above, or entity or person required to be registered under the U.S. Commodity Exchange Act, or any substantially equivalent statute or regulation, or from engaging in or continuing any conduct or practice in connection with any such activity, or in connection with the purchase or sale of any security.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.Has willfully aided, abetted, counseled, commanded, induced, or procured the violation by any other person of any provision of the Securities Exchange Act of 1933, the Securities Exchange Act of 1934, this Section H, the Commodity Exchange Act, the rules or regulations under any of such statutes, or the rules of the Municipal Securities Rulemaking Board, or has failed reasonably to supervise, with a view to preventing violations of the provisions of such statutes, rules and regulations, another person who commits such violation, if such other person is subject to his supervision. No person shall be deemed to have reasonably to supervise any person, for purposes of this paragraph, if

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.There have been established procedures, and a system for applying such procedures, which would reasonably be expected to prevent and detect, insofar as practicable, any such violation by such other person, and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Such person has reasonably discharged the duties and obligations incumbent upon him by reason of such procedures and system without reasonable cause to believe that such procedures and system were not being complied with.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi.Is subject to any order of the Commission barring or suspending the right of the person to be associated with an Investment Adviser.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii.Has been found by a foreign financial regulatory authority to have

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Made or caused to be made in any application for registration or report required to be filed with a foreign securities authority, or in any proceedings before a foreign securities authority with respect to registration, any statement that was at the time and in light of the circumstances under which it was made false or misleading with respect to any material fact, or has omitted to state in any application or report to a foreign securities authority any material fact that is required to be stated therein;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Violated any foreign statute or regulation regarding transactions in securities or contracts of sale of a commodity for future delivery traded on or subject to the rules of a contract market or any board of trade; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Aided, abetted, counseled, commanded, induced, or procured the violation by any other person of any foreign statute or regulation regarding transactions in securities or contracts of sale of a commodity for future delivery traded on or subject to the rule of a contract market or any board of trade, or has been found, by the foreign financial regulatory authority, to have failed reasonably to supervise, with a view to preventing violations of statutory provisions, and rules and regulations promulgated thereunder, another person who commits such a violation, if such other person is subject to his supervision.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;viii.Is subject to any final order of a State securities commission, State authority that supervises or examines banks, savings associations, or credit unions, State insurance commission, an appropriate Federal banking agency or the National Credit Union Administration, that

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Bars such person from association with an entity regulated by such commission, authority, agency, or officer, or from engaging in the business of securities, insurance, banking, savings association activities, or credit union activities; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Constitutes a final order based on violations of any laws or regulations that prohibit fraudulent, manipulative, or deceptive conduct.

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Additionally, under its Fiduciary Duties to Post's ERISA Clients and subject to provisions under the Department of Labor's QPAM provisions, Post would be obligated to provide notice to its ERISA Clients and more than likely be disqualified from continuing to be their Investment Adviser should a Post Employee have certain disqualifying events. The following are the DOL disqualifying events and **all Employees are required to notify the CCO immediately** if the Employee is subject to any one or more of these events or is unsure if the Employee may be subject to any one or more of these events:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.Any felony involving abuse or misuse of such person's employee benefit plan position or employment, or position or employment with a labor organization;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.Any felony arising out of the conduct of the business of a broker, dealers, investment adviser, bank, insurance company, or fiduciary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.Income tax evasion;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.Any felony involving the larceny, theft, robbery, extortion, forgery, counterfeiting, fraudulent concealment, embezzlement, fraudulent conversion, or misappropriation of funds or securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.Conspiracy or attempt to commit any such crimes;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi.Has been convicted of, or has been imprisoned as a result of his conviction of, robbery, bribery, extortion, embezzlement, fraud, grand larceny, burglary, arson, a felony violation of Federal or State law involving substances defined in section 802(6) of title 21, murder, rape, kidnapping, perjury, or assault with intent to kill.

**III.PERSONAL SECURITIES TRANSACTIONS AND REPORTING**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.DESIGNATION OF AN ACCESS PERSON**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.**ACCESS PERSON:** means any Employee of Post. Every Employee should consider himself an Access Person unless otherwise specifically exempted (see ***Exempt Access Person*** below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.**EMPLOYEE**: All officers, directors, employees, temporary employees, contractors and related persons of Post.

Note: The Compliance Officer shall determine on a case-by-case basis whether a temporary employee (e.g., consultant or intern) should be considered an Access Person. Such determination shall be made based upon an application of the criteria, among other items, of the temporary employee's access to nonpublic information regarding any of the Adviser's client's purchases or sales of securities or nonpublic information regarding the portfolio holdings of any client account the Adviser manages.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.**EXEMPT ACCESS PERSON:** If an Employee does not have access to non-public information with respect to Client portfolio holdings, transactions or securities recommendations and is not involved in the process of recommending or executing securities transactions, the COO and CCO may deem such person to be an Exempt Access Person. The CCO will promptly notify an Exempt Access Person of such designation in writing. Exempt Access Persons are relieved from the personal trading provisions of the Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.COMPLIANCE PLATFORM AND REVIEW**

Post utilizes the electronic compliance platform, FIS PTA Protegent ("PTA") to manage certain compliance reporting and certification obligations required of Access Persons. Access Persons are required to use PTA to complete the reporting specified by the Code of Ethics. If there are any exceptions required due to technology issues (e.g., a broker is not able to sync up with PTA), it is the Access Person's obligation and requirement to report this to Compliance and to provide any required alternative reporting (i.e., direct reporting from the broker to Post) promptly.

The CCO or designee will review all Initial, Quarterly and Annual Reports as well as any exception reporting provided by PTA.

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The responsibility for reporting under the Code is imposed on each Access Person to ensure that Compliance is in receipt of timely and complete reports. Efforts on behalf of the Access Person by other services (e.g., brokerage firms) do not change or alter the Access Person's responsibility. Late reporting is regarded as a direct violation of this Code and will be treated accordingly. Individuals who neglect their responsibility for appropriate reporting as defined in Section III(C) of this Code may be subject to sanctions including suspension of pre-clearance privileges, fines, and, in appropriate cases, termination. Access Persons will be given written notice of the violation, which may also be reported to the Post's Board.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.REPORTING OBLIGATIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Initial and Annual Holdings Reports

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.Initial Holdings Reports. **Within 10 calendar days** of the date the Post Employee first becomes an Access Person, he or she must submit the initial holdings report. This should be a complete listing of all investment accounts and investments, including private investments, the Post Employee beneficially own as of a date no more than 45 days prior to the date he or she became an Access Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.Annual Holdings Reports. Each year, each Access Person must submit a revised list showing the investment accounts and investments the Access Person beneficially owns as of December 31<sup>st</sup> the prior year end. The Access Person must submit each annual update listing no later than **30 calendar days after December 31**<sup>st</sup>.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.Both of these reports (Initial and Annual) are completed via PTA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Quarterly Transaction Reports.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.All Access Persons must report transactions in securities, as well as any investment accounts. These are due no later than **30 calendar days after the end of the calendar quarter** in which transactions to which the report relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.These are required in addition to delivery of duplicate brokerage confirmations and statements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.These reports are completed via PTA.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.If the Access Person had no reportable transactions or did not open any investment accounts during the quarter, the Access Person is still required to submit their quarterly report indicating so.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.To the extent any new brokerage accounts are opened, Compliance must be notified within thirty (30) calendar days, and prior to any trading in such accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Annual Certification to the Code and Compliance Manual.

Each Access Person must acknowledge receipt of and adherence to the Code in writing (via PTA) on an annual basis. Alongside the Code, the Access Person will receive an annual update of the Compliance Manual to which the Employee must acknowledge receipt of and adherence to as well (via PTA). Each Access Person is required to certify annually that he/she

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.has read and understands the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.is aware that he/she is subject to the provisions of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.has responded to the personal disciplinary history questionnaire; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.has complied with the Code at all times during the previous calendar year, and (iv) has, during the previous calendar year, reported all holding and transactions that he/she is required to report pursuant to the Code.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D. &nbsp;&nbsp;&nbsp;&nbsp;NON-REPORTING ACCOUNTS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. **&nbsp;&nbsp;&nbsp;&nbsp;**<u>DISCRETIONARY ACCOUNTS</u>

Rule 204A-1 provides an exemption from reporting requirements when an Access Person's securities are held in accounts over which the Access Person has no direct or indirect influence or control. The exact rule language is as follows: *your code of ethics need not require an access person to submit: (i) any report with respect to securities held in accounts over which the access person had no direct or indirect influence or control.*

To maintain a discretionary account consistent with this reporting exemption, the following process must be followed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.The Access Person must submit a written request to the CCO or designee prior to establishing the account. Included within this request, the Access Person will provide the CCO with the following information related to the account: name of broker, account number, trustee (if applicable), and an attestation that the account has been established to be managed on a fully discretionary basis by the broker. Additionally, the Access Person will provide Compliance with information if they have any relationship with the trustee or broker for the account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.The CCO or designee will evaluate the request and provide a written response to the Access Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.Once the approved account is established, the securities transactions executed within the account will be exempt from the prohibitions in Section III(K) (Restricted Transactions) and the reporting requirements of Section IIIC(a)(Annual Holdings) and IIIC(b) (Quarterly Transaction Reports), with the following exception: the account must be reported consistent with Section III(C)(c).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.Annually, the Access Person must certify to not having direct or indirect influence or control over the account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.On a sample basis, Compliance may request broker reports from the Access Person on holdings of and/or transactions made in the discretionary account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi.If the discretionary nature of the account changes, the Access Person must notify the CCO or designee immediately. At that time, the account will become subject to the restrictions and reporting requirements noted in Section III(C) and Sections III(I-J).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. &nbsp;&nbsp;&nbsp;&nbsp;<u>POST EMPLOYEE BENEFIT PLANS</u>

The following Post employee benefit plans are considered Covered Accounts; however, Access Persons are not required to report these accounts or transactions executed therein because Compliance may obtain holdings and transaction information for these accounts from Human Resources and/or Principal's Retirement Services, Retirement and Income Solutions areas.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.Post, Principal, or other affiliate's Employee Stock Purchase Plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.Post, Principal, or other affiliate's Deferred Compensation Plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.Post, Principal, or other affiliate's 401(k) Plan

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.Post, Principal, or other affiliate's Health Savings Account

Please note that PFG stock, stock options, or performance share awards held within a personal brokerage account and no longer held by a plan administrator must be reported.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. &nbsp;&nbsp;&nbsp;&nbsp;REPORTABLE ACCOUNTS**

Access Persons must disclose all personal securities accounts or holding in any Reportable Accounts. Reportable Securities include all securities in which the Access Person has any direct or indirect beneficial ownership that may not be held in a traditional brokerage account but still must be reported.

"Beneficial Ownership" means any interest by which you or any Household Member – directly or indirectly – derives a monetary benefit from purchasing, selling, or owning a security or account, or exercises investment discretion. You have Beneficial Ownership of securities held in accounts in your own name, or any Household Member's name, and in all other accounts over which you or any Household Member exercises or may exercise investment decision-making powers, or other influence or control, including trust, partnership, estate, and corporate accounts or other joint ownership or pooling arrangements. A Household Member is any of the following who reside, or are expected to reside for at least 90 days a year, in the same household as a Post Employee: Spouse or Domestic Partner; Sibling; Child, Stepchild, grandchild; Parent, Stepparent, Grandparent; and In-laws.

It is any account for which you or a Household Member has Beneficial Ownership AND in which securities can be bought, sold or held. This includes, among others:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All brokerage, IRA, custodial and trust accounts

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All 529 College Savings Plan accounts

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any 401(k) plan account that permits transactions in any Reportable Security

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any health saving accounts (HSA) that permits the purchase of any Reportable Security

The following would NOT be Reportable Accounts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Charitable Giving Accounts

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any 401(k), 403(b), plan account or any other account held directly with a mutual fund complex or mutual fund-only platform, and not held at a bank or broker-dealer, in which only open-end, non-Affiliated Funds<sup>1</sup> are the only possible investment

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any cash management account with a broker in which a security cannot be purchased or sold

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Discretionary Accounts

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Post Employee Benefit Plans

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Variable Annuity Contracts

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F. &nbsp;&nbsp;&nbsp;&nbsp;NON-REPORTABLE SECURITIES**

The following securities do not require pre-clearance and are not required to be part of an Access Person's Quarterly Transaction Reporting ("QTR") or the Annual Reporting requirements detailed in III(D):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.Direct obligations of the US government

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.Certificates of Deposit, Bankers' acceptances, Commercial Paper, and high quality short-term debt (including repurchase agreements)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.Money market funds

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.Open-end registered funds that are not Affiliated Funds<sup>2</sup> (Closed-End Fund ARE Reportable)

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.Shares issued by unit investment trusts that are invested exclusively in one or more open-ended mutual funds, none of which is a Reportable Fund.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi.Municipal securities available for purchase only through 529 College Savings Plans.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G. &nbsp;&nbsp;&nbsp;&nbsp;REPORTABLE SECURITIES**

Any security that is not included under the Non-Reportable Securities list.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**H. &nbsp;&nbsp;&nbsp;&nbsp;NON-REPORTABLE TRANSACTIONS**

<sup>1</sup> Note Affiliated Funds are open-end registered funds that are affiliated with either Post or any of its affiliates.

<sup>2</sup> Note Affiliated Funds are open-end registered funds that are affiliated with either Post or any of its affiliates.

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The following are not required to be included on an Access Person's QTR, even if it involves a Reportable Security. However, note that these are still subject to the reporting requirements detailed in Section III(D):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.Discretionary Account transactions

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.Transactions under an Automatic Investment Plan, any overrides/variations ARE Reportable

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.Dividend reinvestments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.Accrued interest reinvestments

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.Securities acquired through an employer-sponsored automatic payroll deduction plan. Initial account set- up of plan must be disclosed but ongoing purchases do not have to be pre-cleared

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi.Reportable Funds<sup>3</sup>; however, these must be held for a minimum of 30 days prior to sale. If sold before the 30 calendar-day holding period expires, any profits realized on the sale must be disgorged to a charitable organization designated by Post.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. &nbsp;&nbsp;&nbsp;&nbsp;REPORTABLE TRANSACTIONS**

Any transaction that is not included under the Non-Reportable Transaction is required to be reported, a "Reportable Transaction".

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**J. &nbsp;&nbsp;&nbsp;&nbsp;RESTRICTED TRANSACTIONS**

Under the Code, the following are not permitted to be traded by Access Persons, or they are permitted to be traded but subjected to pre-clearance requirements.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.The following are "Restricted Transactions" and require pre-clearance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.**Any Reportable Transaction in a Reportable Security**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.Any investment in an initial public offering ("IPO")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.Any investment (buy or sale) in a private offering, this includes an investment in a Post Fund

All Access Persons **must receive pre-clearance approval** for any Restricted Transactions from Compliance prior to entering into any Reportable Transaction. Pre-clearance approval of all trades is valid for two business days, including the day the trade is approved. This applies to all market and limit orders, good-till-cancelled orders, and stop loss orders. If the trade is not fully executed by the second business day, a new approval is required. Denied trades must not be executed. Pre-clearance is not required for Non-Reportable Securities or Non-Reportable Transactions.

Pre-clearance of a trade can be accomplished in one of two ways:

PTA – A pre-clearance request must be submitted in PTA prior to trading. Approval or denial will be provided from the system immediately and a confirmation e-mail will be sent to the Access Person and Compliance. If more time is required to research the request, the Access Person will be notified. The Access Person shall not conduct the trade until he or she has received the approval notification.

Alternative Method – If an Access Person does not have access to PTA, a trade may be pre-cleared manually through Compliance. Access Persons must reach out to Compliance, who will add the pre-clearance request in PTA and notify the Access Person of the approval or denial.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.The following are **<u>prohibited</u>**. No Access Person may:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;i.Transact in any security or any derivative transaction relating to any security issued by an entity on the Watch List. This includes all other securities related to the issuer of the security that has been restricted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;ii.Participate in investment clubs.

<sup>3</sup> A Reportable Fund is any fund for which Post serves as an investment adviser as defined by the Investment Advisers Act of 1940 or any fund whose investment adviser or principal underwriter controls, is controlled by, or is in common control with Post.

10

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iii.Enter into a short sale of any security. Writing/selling call and put option contracts is not considered a short sale.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;iv.Establish a long position in his or her personal account in a security if any Client Account would benefit from a decrease in the value of such security. For example, the Access Person would be prohibited from establishing a long position if (1) the Client Account holds a put option on such security (aside from a put purchased for hedging purposes where the Client Account holds the underlying security); (2) the Client Account has written a call option on such security; or (3) the Client Account has sold such security short, other than "against-the-box." Further, no Access Person may purchase a put option or write a call option where a Client Account holds a long position in the underlying security.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;v.Purchase or sell a Reportable Security on a day when a Client has a pending buy or sell order in that same Reportable Security. Furthermore, Access Persons are prohibited from purchasing or selling a Reportable Security, which to their knowledge at the time of purchase or sale is being considered for purchase or sale by a Client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vi.Purchase or sell a Reportable Security within ***seven (7) calendar days*** before or after Post trades in that Reportable Security on behalf of a Client portfolio.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;vii.Any transaction that results in trading for the Access Person during the Calendar Year of greater than 200 trades, inclusive of non-reportable and reportable trades.

Trades made in violation of these blackout periods should be unwound, if possible. Any violation of the foregoing restrictions may result in disgorgement of all profits from the transactions, as well as other possible sanctions. See Sanctions in IV. Violations below.

**IV.VIOLATIONS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.PROMPTLY REPORT VIOLATIONS OR POSSIBLE VIOLATIONS OF THE CODE**

All Supervised Persons must report violations of Post's Code of Ethics promptly to Post Compliance. All reports of violations will be treated confidentially to the extent permitted by law and investigated promptly and appropriately. No retribution will be taken against a person for reporting, in good faith, a violation or suspected violation of the Code of Ethics. If you have violated the Code; however, making a report will not protect you from the consequences of your actions.

In addition, the PFG Ethics Hotline is available for reporting any suspected unethical or fraudulent activity and allows for anonymous reporting. PFG Ethics Hotline: 1-866-858-4433. The Ethics Hotline is staffed 24 hours a day, seven days a week. These reports are made through a third party not affiliated with the PFG which collects the information, creates a report, and sends it promptly to the PFG for investigation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.SANCTIONS**

Upon discovering a violation of this Code (inclusive of misrepresentation in an Access Person's Reporting Disclosure), the CCO shall impose such sanctions as determined appropriate. Sanctions may include a letter of warning, suspension of personal Securities transactions, monetary fines, and other sanctions up to and including suspension or termination of employment or contract. In addition, any profits over $100 from prohibited transactions must be disgorged.

The CCO or his or her designee has the authority to interpret the Code and grant exceptions, when appropriate. The reasoning for granting exceptions will be documented in writing. No waivers or exceptions that would violate any laws will be granted.

Never do anything indirectly that, if done directly, would violate the Code. Such actions will be considered the equivalent of direct Code violations.

11

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**V.ADMINISTRATIVE MATTERS**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.BOARD APPROVAL**

Annually, those individuals charged with the responsibility for monitoring compliance with this Code shall prepare a written report to the Board of Directors of Post that, at a minimum, will include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** A certification that Post has adopted procedures reasonably necessary to prevent Access Persons from violating the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Identification of material violations and sanctions imposed during the past year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** A description of issues that arose during the previous year under the Code; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**•** Recommendations, if any, as to changes in existing restrictions or procedures based upon experience with this Code, evolving industry practices and changes and developments in applicable laws or regulations.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.ANNUAL REPORTING TO INVESTMENT COMPANY CLIENTS**

Post will, upon request, prepare a written annual report relating to its Code to the Board of Directors of each investment company Client for which it acts as investment adviser or sub-adviser. Such annual report shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Summarize existing procedures concerning personal investing and any material changes in the procedures made during the past year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Identify any material violations requiring significant remedial action during the past year;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Identify any recommended changes in the existing restrictions or procedures based upon experience under its Code, evolving industry practices, and developments in applicable laws or regulations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Certify that Post has adopted procedures reasonably designed to prevent Access Persons from violating its Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.RETENTION OF RECORDS**

Post must, at its principal place of business, maintain records in the manner and to the extent set out below and must make these records available to the SEC or any representative of the SEC, or other applicable regulatory agency at any time and from time to time for reasonable periodic, special or other examinations:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A copy of this Code or any Code which within the past five (5) years has been in effect;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A record of any violation of this Code, and of any action taken as a result of such violation, shall be preserved in an easily accessible place for a period of not less than five (5) years following the end of the fiscal year in which the violation occurs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A copy of each report, certification, or acknowledgement made by an Access Person pursuant to this Code shall be preserved for a period of not less than five (5) years from the end of the fiscal year in which it is made;&nbsp;&nbsp;&nbsp;&nbsp;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A list of all persons who are, or within the past five (5) years have been, required to make reports pursuant to this Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A record of any decision, and the reasons supporting the decision, to approve the acquisition by Access Persons in a Private Investment, as described in Section V(E) of this Code, for at least five (5) years after the end of the fiscal year in which the approval is granted; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A copy of each annual report required under Section III(D) for at least five (5) years after the end of the fiscal year in which it is made.

All such records shall be maintained for at least the first two (2) years in an easily accessible place as deemed appropriate by Post.

*Policy Updated: February 2025 by Maureen Ocampo, Previous Policy Date: January 2025*

12

## Ex-99.(P)(26)

**T. ROWE PRICE GROUP, INC. AND ITS SUBSIDIARIES**

**T. ROWE PRICE MUTUAL FUNDS**

**T. ROWE PRICE EXCHANGE-TRADED FUNDS**

**CODE OF ETHICS AND PERSONAL TRANSACTIONS POLICY**

**July 1, 2025**

---

| | | | |
|:---|:---|:---|:---|
| **Table of Contents** | **Table of Contents** | **Table of Contents** | **Table of Contents** |
| **I.** | **INTRODUCTION** | **INTRODUCTION** | **2** |
| **II.** | **STANDARDS OF BUSINESS CONDUCT** | **STANDARDS OF BUSINESS CONDUCT** | **3** |
| **III.** | **REPORTING REQUIREMENTS** | **REPORTING REQUIREMENTS** | **5** |
|  | A. | Initial Disclosure of Existing Accounts | 5 |
|  | B. | New Accounts | 5 |
|  | C. | Transaction Reporting | 5 |
|  | D. | Exceptions to the Reporting Requirements | 6 |
| **IV.** | **PRE-CLEARANCE AND HOLDING PERIOD REQUIREMENTS** | **PRE-CLEARANCE AND HOLDING PERIOD REQUIREMENTS** | **6** |
|  | A. | Pre-clearance Requirements for all Associates | 6 |
|  | B. | Pre-clearance Requirements for Access Persons | 7 |
|  | C. | Pre-clearance for Private Placements: | 7 |
|  | D. | Holding Period Requirements | 7 |
|  | E. | Exceptions to the Pre-Clearance Requirement | 8 |
| **V.** | **OTHER PROVISIONS RELATING TO PERSONAL TRANSACTIONS** | **OTHER PROVISIONS RELATING TO PERSONAL TRANSACTIONS** | **8** |
|  | A. | Limit Orders | 8 |
|  | B. | Transacting in TRPG Securities | 8 |
|  | C. | Transacting in ETFs | 8 |
|  | D. | Initial Public Offerings ("IPOs") | 9 |
|  | E. | Options and Futures | 9 |
|  | F. | Participation in Investment Clubs | 9 |
| **VI** | **PERSONAL TRANSACTIONS RESTRICTIONS** | **PERSONAL TRANSACTIONS RESTRICTIONS** | **10** |
| **VII** | **CERTIFICATION REQUIREMENTS** | **CERTIFICATION REQUIREMENTS** | **10** |
|  | A. | Initial Holdings | 11 |
|  | B. | Annual Compliance Certification | 11 |
|  | C. | Reporting of One – Half of One Percent Ownership | 12 |
| **VIII.** | **ROLES AND RESPONSIBILITIES** | **ROLES AND RESPONSIBILITIES** | **12** |
| **IX.** | **VIOLATIONS AND SANCTIONS** | **VIOLATIONS AND SANCTIONS** | **13** |
| **X.** | **EXCEPTIONS AND INTERPRETATIONS** | **EXCEPTIONS AND INTERPRETATIONS** | **14** |
| **XI.** | **DEFINED TERMS** | **DEFINED TERMS** | **14** |
| **Provisions Applicable to Independent Directors** | **Provisions Applicable to Independent Directors** | **Provisions Applicable to Independent Directors** | **18** |
| **Pre-clearance and Reporting Matrix** | **Pre-clearance and Reporting Matrix** | **Pre-clearance and Reporting Matrix** | **23** |

---

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**T. ROWE RICE GROUP, INC. AND ITS SUBSIDIARIES**

**T. ROWE PRICE MUTUAL FUNDS**

**T. ROWE PRICE EXCHANGE-TRADED FUNDS**

**CODE OF ETHICS AND PERSONAL TRANSACTIONS POLICY**

**I.&nbsp;&nbsp;&nbsp;&nbsp;<u>INTRODUCTION</u>**

This Code of Ethics and Personal Transactions Policy (the "Policy") sets forth the standards of business conduct expected of all:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• officers, directors and employees of T. Rowe Price Group, Inc. ("TRPG") and certain of its subsidiaries<sup>1</sup> (collectively, "T. Rowe Price") and their Family Members;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• officers, directors and employees of the Price Funds, the SICAVs, or the Cayman Funds (each as defined below); and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• contingent workers, agency temporary workers, contractors, consultants, and any other personnel who have been notified that they are subject to this Policy

(collectively referred to as "Associates") in connection with their personal securities transactions.

The Policy is designed to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reflect the fiduciary duty of the firm to its clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Address compliance with laws, rules, and regulations applicable to T. Rowe Price's business, including, but not limited to Rule 204A-1 under the Investment Advisers Act ("Rule 204A-1") and Rule 17j-1 under the Investment Company Act of 1940 ("Rule 17j-1");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Prevent regulatory, business and ethical conflicts as they relate to personal transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Minimize the potential of a transaction or circumstance occurring that a regulatory agency would view as inconsistent with T. Rowe Price's role as a fiduciary;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Avoid situations in which it might appear that any officer, director, employee or other personnel of T. Rowe Price or the Price Funds had benefited personally at the expense of a client or fund shareholder or taken inappropriate advantage of their fiduciary position; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Detect and prevent the misuse of material, non-public information.

All Associates must comply with the Policy. Certain Associates will be notified by Code Compliance that they have been designated as "Access Persons" and are subject to more restrictive pre-clearance and reporting requirements.

"Access Persons" are defined as:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any officer or director of any of the Price Advisers and the Price Funds (except the Independent Directors of the Price Funds);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any person associated with T. Rowe Price who, in connection with their regular functions or duties: (i) makes, participates in, obtains or has access to non-public information regarding the purchase or sale of securities by any Price Adviser client; (ii) has access to non-public information regarding the securities holdings of any Price Adviser client; or (iii) makes recommendations with respect to the purchases or sales of securities for a Price Adviser client; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any other person classified as such by Code Compliance.

<sup>1</sup> For the avoidance of doubt, this Policy does not apply to Oak Hill Advisors, L.P and its subsidiaries.

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The Policy has been adopted by T. Rowe Price and its subsidiaries<sup>2</sup>, the Price Funds, T. Rowe Price UK Limited (TRP UK"), the SICAVs, and the Cayman Funds.

The independent directors of TRPG, TRP UK , T. Rowe Price Funds SICAV ("SICAVI"), T. Rowe Price Funds Series II SICAV ("SICAVII"), Select Investments Series III SICAV ("SICAVIII"), T. Rowe Price Funds B SICAV ("SICAVB" and together with the SICAVI, SICAVII, SICAVIII and SICAVB, the "SICAVs"), T. Rowe Price Macro and Absolute Return Strategies Master Fund Ltd and T. Rowe Price Macro and Absolute Return Strategies Offshore Fund Ltd (together the "Cayman Funds") and Price Funds are not subject to all the requirements of the Policy. The requirements of the Policy applicable to independent directors are set forth in <u>Exhibit A.</u> 

This Policy and each Associate's adherence to it is meant to satisfy T. Rowe Price's requirements under Rule 204A-1 and Rule 17j-1.

Certain defined terms used in the Policy are set forth in "*Defined Terms."* 

**II.&nbsp;&nbsp;&nbsp;&nbsp;<u>STANDARDS OF BUSINESS CONDUCT</u>**

T. Rowe Price has established a *Code of Conduct* that sets standards expected of all Associates and provides the framework for conducting business in a fair and ethical manner. Consistent with the *Code of Conduct*, T. Rowe Price and each Associate have a fiduciary duty to put client interests first and to always act in the clients' best interests. Associates must comply with applicable legal requirements, securities laws, the Code of Conduct and related policies and procedures.

**Conflicts of Interest**

The *Code of Conduct* states that conflicts of interest may arise between clients, between clients and T. Rowe Price, between clients and Associates, and among T. Rowe Price's own entities or business divisions. T. Rowe Price takes all reasonable steps to identify and manage conflicts. It is the responsibility of each Associate to disclose all material conflicts and to act in a manner consistent with this Policy. Conflicts or potential conflicts of interest involving an Associate's behavior may arise through, among other activities, an Associate's personal securities transactions, outside business activities, political contributions and activities and the exchange of gifts and business entertainment.

*Personal securities transactions.* An Associate's personal securities transactions may present an actual, potential or apparent conflict or other risk that could harm T. Rowe Price, its shareholders or its clients. For T. Rowe Price to identify and manage these conflicts and risks, Associates must disclose their personal brokerage accounts and holdings, disclose and receive approval for any trading accounts subject to this Policy and conduct approved securities transactions in accordance with the requirements of this Policy.

<sup>2</sup> For the avoidance of doubt, this Policy does not apply to Oak Hill Advisors, L.P and its subsidiaries.

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Associates must not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Improperly benefit personally by causing a client to act, or fail to act, in making investment decisions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Profit, or cause others to profit, based on their knowledge of completed or contemplated client transactions.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transact on the basis on material, non-public (inside) information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Engage in personal securities transactions that are in conflict with the interests of clients, the parameters set by the Policy, or the restrictions imposed by T. Rowe Price restricted lists.

T. Rowe Price maintains lists of issuers for which a Price Adviser or an Associate may be in possession of material, non-public information (the "Restricted Lists"). When an issuer is listed on a Restricted List, personal trading by Access Persons is prohibited.

*Outside business activities.* Associates are expected to put their responsibilities at T. Rowe Price ahead of any other personal business opportunities or second jobs and must avoid any activities, relationships or situations that might conflict with, or appear to conflict with, their duties on behalf of T. Rowe Price. When an Associate is engaged in an approved outside business activity, they must be vigilant about any changes in the arrangement that may present a real or perceived conflict of interest with T. Rowe Price. Refer to the *Global Outside Business Activities Policy* for more information.

*Political contributions and activities.* Associates must obtain prior clearance for their political contributions and activities in support of candidates for political office in the U.S. Political contributions and activities undertaken by Associates must always be lawful and consistent with T. Rowe Price and business unit policies. Associates may not coordinate or solicit third parties to make a contribution or payment to any candidate, officeholder, political party, political action committee, political organization or bond ballot campaign in the U.S. Furthermore, Associates may not do anything indirectly that, if done directly, would violate T. Rowe Price policies or applicable regulation. Refer to the *Global Political Contributions and Activities Policy* for more information.

*Gifts and business entertainment.* Associates may not offer, give, provide, or accept any gift or business entertainment unless such gift or entertainment:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Is reasonable and customary under the circumstances;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Is not lavish in value, unique in nature, or excessive in frequency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cannot be construed as a bribe, payoff, or kickback to obtain or retain business;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Is an appropriate reimbursable business expense; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Does not violate any applicable law or regulation.

Refer to the *Global Gifts and Business Entertainment Policy* for more information.

Associates must contact Code Compliance for guidance if they believe that a perceived or actual conflict arises under any of the activities described above or otherwise.

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**III. &nbsp;&nbsp;&nbsp;&nbsp;<u>REPORTING REQUIREMENTS</u>**

Securities accounts are generally defined as accounts that satisfy one of the following conditions:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Associate is a direct or Beneficial Owner of the account; **OR**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The Associate Controls or directs securities trading for another person or entity, even if they are not the Beneficial Owner of the account;

**AND** invest in, or have the ability to invest in, any of the following securities:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Individual equity securities, including ETFs, and derivatives of these securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fixed income securities and derivatives of these securities; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Reportable Funds.

**A. Initial Disclosure of Existing Accounts** 

All Associates must disclose their securities accounts and the securities accounts of their Family Members (including Fully Discretionary Accounts and any securities accounts holding TRPG securities) maintained with any broker, dealer, investment adviser, bank or other financial institution via myTRPcompliance. Such disclosure must take place within <u>ten calendar days</u> of becoming subject to the Policy, opening or discovering a reportable account.

**B. New Accounts**

All Associates must obtain prior approval via myTRPcompliance for all new non-T. Rowe Price securities accounts opened while they are associated with the firm. Associates in the U.S. and the U.K. may only open new securities accounts with financial institutions that agree to provide Code Compliance with an automated data feed of the transactions effected in the account (the Approved Broker List<u>)</u>. All Associates opening a new securities account with a broker-dealer must inform such firm of their association with a T. Rowe Price-affiliated broker-dealer.

Securities held in securities accounts are generally subject to reporting and <u>may</u> require pre-clearance. Refer to "*Reporting Requirements"* and "*Pre-clearance and Holding Period Requirements"* for details. Code Compliance may, in certain circumstances, grant an exception to the requirements described above. Refer to *"Exceptions and Interpretations"* for more information.

**C. Transaction Reporting**

All Associates must request broker-dealers, investment advisers, banks, or other financial institutions executing transactions in securities in the Associate's securities accounts to provide: (i) a duplicate trade confirmation with respect to each transaction in a security; and (ii) a copy of all periodic account statements.

<u>If the executing firm provides a trade confirmation directly to Code Compliance via an established automated data feed, no further reporting is needed.</u> 

If the broker is unable to satisfy transaction reporting through an automated data feed or by delivery of a paper copy of trade confirmations and statements, Associates are required to enter transaction details in myTRPcompliance (as prescribed in Rule 17j-1(d)(1)(ii)) within <u>10 calendar days</u> after the transaction occurred.

A transaction in a Reportable Fund, a spousal payroll deduction plan or a stock split or similar acquisition or disposition must be reported within <u>30 calendar days</u> after the end of the calendar quarter in which the transaction occurred

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**D. Exceptions to the Reporting Requirements**

***Robo Adviser Accounts****.* Accounts held through a robo-adviser platform that invest solely in third party collective investment vehicles that are not advised by T. Rowe Price (such as non-Price ETFs) do not require approval or reporting to Code Compliance. Transactions effected in such accounts do not need to be reported. Questions on whether an account is classified as a robo-adviser should be directed to Code Compliance

***Fully Discretionary Accounts.*** A Fully Discretionary Account is a securities account for which an Associate has completely relinquished decision-making authority to a professional money manager (who is not a Family Member or not otherwise subject to this Policy) and over which the Associate has no direct or indirect influence or Control. When disclosing Fully Discretionary Accounts, Associates must provide Code Compliance with a copy of the investment management agreement (or equivalent).

**IV.&nbsp;&nbsp;&nbsp;&nbsp;<u>PRE-CLEARANCE AND HOLDING PERIOD REQUIREMENTS</u>**

All Associates must obtain pre-clearance via myTRPcompliance when transacting in TRPG securities. Associates who have been designated as Access Persons must also obtain pre-clearance for other securities transactions, as described in further detail below.

Associates will receive a response via myTRPcompliance indicating whether the request was approved or denied and must refrain from executing the transaction until such response is obtained.

Pre-clearance approval is valid for <u>the day it is received and the following business day</u> (measured from the first business day in the requesting Associate's time zone). Pre-clearance approval for Private Placements is valid for 90 calendar days.

**A. Pre-clearance Requirements for all Associates**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All Associates must request pre-clearance via myTRPcompliance <u>before</u> executing a transaction to sell or transfer TRPG securities (TRPG stock ticker: TROW) from their ESPP.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All Associates must request pre-clearance via myTRPcompliance <u>before</u> executing a transaction to purchase, sell, or gift TRPG securities outside of the ESPP.

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**B. Pre-clearance Requirements for Access Persons**

Access Persons must request pre-clearance via myTRPcompliance <u>before</u> executing a transaction in any individual stocks, bonds, Private Placements and derivatives of these securities, and Price ETFs for which the Access Person is a Beneficial Owner. Refer to <u>Exhibit B</u> for additional pre-clearance requirements.

**C**. **Pre-clearance for Private Placements:** 

Access Persons and FINRA -registered representatives must obtain pre-clearance when investing in a Private Placement, including the purchase of limited partnership interests. Along with the Private Placement offering document, the Access Person or FINRA registered representative must provide:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The name, location and a brief description of the private issuer/company;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The amount of investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The desired date of investment;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• If applicable, the percentage of the Access Person's ownership in the private issuer/company after investment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The source (name and relationship to Access Person) that introduced the investment opportunity to the Access Person.

An Access Person or FINRA-registered representative who has invested in a Private Placement and who later anticipates participating in a Price Adviser's investment decision regarding the purchase or sale of securities of the issuer of that Private Placement on behalf of any Price Adviser client, must immediately disclose their investment to the Chairperson of the Ethics Committee, or their designee and to the Chairperson of the appropriate Investments steering committee.

**D. Holding Period Requirements**

A 60-day holding period applies to securities and transactions requiring pre-clearance. Access Persons are not permitted to: (i) sell shares of an issuer if they have purchased shares of the same issuer for a lesser price during the previous 60 calendar days; or (ii) buy shares to cover a short position when the short position was entered in the previous 60 calendar days, if covering the position for a lesser price. Access Persons must check their compliance with the holding period requirement **before** entering into a transaction.

***Holding Period for Associates in Japan.*** Securities acquired by employees of T. Rowe Price Japan, Inc. are subject to a holding period of six months. Refer to *TRP Japan Compliance Manual* for more information.

***Holding Period for the Price Funds.*** Associates must comply with the provisions of the holding restrictions set forth in the prospectus for the applicable Price Fund.

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**E. Exceptions to the Pre-Clearance Requirement**

***Fully Discretionary Accounts.*** Transactions in securities held in Fully Discretionary Accounts are not subject to the pre- clearance requirement, except transactions involving TRPG securities, short sales and Private Placements.

Refer to <u>Exhibit B</u> for other exceptions to the pre-clearance requirement.

**V.&nbsp;&nbsp;&nbsp;&nbsp;<u>OTHER PROVISIONS RELATING TO PERSONAL TRANSACTIONS</u>**

**A. Limit Orders**

While limit orders are permitted, Access Persons must be careful using "good until cancelled" orders, keeping in mind that pre-clearance is valid for the day it is received and the following business day. Use of "day" limit orders are encouraged.

**B. Transacting in TRPG Securities**

The following chart is a summary of requirements applicable when Associates transact in TRPG securities:

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| | |
|:---|:---|
| **Description of Activity** | **Requirement Under the Policy** |
| Executing a transaction to sell or transfer TRPG securities from an Associate's ESPP | &nbsp;&nbsp;&nbsp;&nbsp;• Pre-clearance via myTRPcompliance<br>&nbsp;&nbsp;&nbsp;&nbsp;• Reporting |
| Executing a transaction to purchase, sell, or gift TRPG securities outside of an Associate's ESPP\* | &nbsp;&nbsp;&nbsp;&nbsp;• Pre-clearance via myTRPcompliance<br>&nbsp;&nbsp;&nbsp;&nbsp;• Reporting |
| Giving TRPG securities as a gift (including a gift to a donor advised fund) after holding the stock for at least 60 days | &nbsp;&nbsp;&nbsp;&nbsp;• Pre-clearance via myTRPcompliance<br>&nbsp;&nbsp;&nbsp;&nbsp;• Reporting |
| Applicability of a holding period [not applicable to options or vested shares] | Yes, 60 calendar days  |
| Transacting in TRPG during a Blackout Period | **Prohibited** |
| Transacting in options related to TRPG securities (other than stock options granted to Associates) | **Prohibited** |
| Selling TRPG securities short | **Prohibited** |
| Entering into any contract or purchasing any instrument designed to hedge or offset any decrease in the market value of TRPG securities | **Prohibited** |
| Reporting of transactions in TRPG securities to the SEC (applies to Associates subject to Section 16 of the Securities Exchange Act of 1934, as amended)  | Transactions must be reported immediately |
| \*Associates should contact Payroll & Stock Transactions in the event of uncertainty regarding applicability of the pre-clearance requirement. | \*Associates should contact Payroll & Stock Transactions in the event of uncertainty regarding applicability of the pre-clearance requirement. |

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**C. Transacting in ETFs**

Following is a summary of requirements applicable when Associates transact in ETFs:

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| | | |
|:---|:---|:---|
| | **Access Persons** | **All Other Associates** |
| Pre-clearance (Price ETFs) | Yes | No |
| Pre-clearance (Third-party ETFs) | No | No |
| Post-trade reporting (Price ETFs) | Yes | Yes |
| Post-trade reporting (Third-party ETFs) | Yes | Yes |
| Subject to the 60-Day Rule (Price ETFs) | Yes | No |
| Subject to the 60-Day Rule (Third-party ETFs) | No | No |

---

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| | | |
|:---|:---|:---|
| | **Access Persons** | **All Other Associates** |
| Able to buy/sell in the primary market (Price ETFs) | No | No |
| Able to buy/sell in the primary market (Third-party ETFs) | Yes | Yes |
| Able to sell short (Price ETFs) | No | No |
| Able to sell short (Third-party ETFs) | Yes | Yes |
| Able to transact in options (Price ETFs) | No | No |
| Able to transact in options (Third-party ETFs) | Yes | Yes |
| Able to transact in inverse/short and narrow Price ETFs\*  | No | Yes |
| Able to transact in inverse/short and narrow (Third-party ETFs\*) | No | Yes |
| Able to transact in single-stock ETFs | No | No |
| \* Narrow ETFs include, but are not limited to, those focused on specific industries *(e.g.,* energy, healthcare, financial services, etc.), commodities, currencies, and specific geographical markets (*e.g.,* countries or regions). | \* Narrow ETFs include, but are not limited to, those focused on specific industries *(e.g.,* energy, healthcare, financial services, etc.), commodities, currencies, and specific geographical markets (*e.g.,* countries or regions). | \* Narrow ETFs include, but are not limited to, those focused on specific industries *(e.g.,* energy, healthcare, financial services, etc.), commodities, currencies, and specific geographical markets (*e.g.,* countries or regions). |

---

**D. Initial Public Offerings ("IPOs")**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Investment Personnel and FINRA-registered representatives are prohibited from purchasing securities in an IPO.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Access Persons other than Investment Personnel and FINRA-registered representatives may purchase securities in an IPO only after receiving pre-clearance via Code Compliance or myTRPcompliance. The 60-day holding period requirement applies to transactions in securities purchased in an IPO.

**E. Options and Futures**

The purchase, sale and exercise of options are generally subject to the same restrictions as applicable to securities (*i.e.,* an option should be treated as if it were the common stock). If a transaction in the underlying instrument does not require pre-clearance (*e.g.,* ETFs, national government obligations, unit investment trusts), then an options or futures transaction on the underlying instrument does not require pre-clearance.

Closing (selling to close or buying to close) or exercising an option (for which the underlying instrument is subject to pre-clearance, *e.g*., stock options) requires pre-clearance. Pre-clearance is not required when an Access Person writes (sells) an option and the option is exercised against such Access Person, without any action on their part. Access Persons should be cautious when transacting in options since a client transaction in the underlying security or a restriction associated with the underlying security may prevent an option transaction from being closed or exercised.

**F. Participation in Investment Clubs**

Associates may form or participate in an investment club. Investment club transactions in TRPG securities are subject to pre-clearance and must be reported along with the Associate's personal transactions activity.

Access Persons or their Family Members must not form or participate in an investment club without prior written approval from the Chairperson of the Ethics Committee, or their designee. Transactions effected by an investment club in which an Access Person is a member, Beneficial Owner or Controller are subject to the same pre-clearance and reporting requirements as apply to the Access Person's personal trades.

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**VI.&nbsp;&nbsp;&nbsp;&nbsp;<u>PERSONAL TRANSACTIONS RESTRICTIONS</u>**

**Associates must not:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Engage in personal transactions that are excessive or that compromise the firm's fiduciary duty to clients. Excessive trading in covered accounts is strongly discouraged. In general, anyone requesting and/or trading covered securities more than 20 times (other than TRP funds) in a month across all their covered accounts should expect additional scrutiny of their activity.

oCode Compliance monitors trading activity and may send notice to your direct manager regarding the number of trades and associated details during a given period for further review and potential escalation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Wager, bet or gamble in connection with individual securities, securities indices, currency spreads, or other similar financial indices or instruments including contracts for difference.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Participate in initial coin offerings.

**Access Persons must not:**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transact in securities for which orders have been placed by any Price Adviser to purchase or sell the security, unless certain size or volume parameters<sup>3</sup> as set forth by the Ethics Committee are met.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transact in any security that has been purchased or sold by any Price Adviser client seven calendar days immediately prior to the date of the Access Person's proposed transaction, unless certain size or volume parameters<sup>3</sup> as established by the Ethics Committee are met.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transact in securities issued by broker-dealers, underwriters or SEC-registered investment advisers, unless the entity is traded on an exchange.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transact in securities of issuers on any of the firm's Restricted Lists.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transact in securities for which a change in the rating of an issuer has occurred within seven calendar days immediately prior to the date of the proposed transaction.

**VII.&nbsp;&nbsp;&nbsp;&nbsp;<u>CERTIFICATION REQUIREMENTS</u>**

In addition to disclosure of their securities accounts (as described in "*Types of Accounts/Account Opening Requirements"),* Associates are required to, among other things, disclose the holdings in such accounts upon becoming subject to the Policy and periodically thereafter.

<sup>3</sup> Transactions involving no more than US $50,000 or the nearest round lot (even if the amount of the transaction marginally exceeds US $50,000) per security per seven calendar day period in securities of (i) issuers with market capitalizations of US $7.5 billion or more, or (ii) U.S. issuers with an average daily trading volume in excess of 750,000 shares over the preceding 90 trading days in the U.S., **<u>unless</u>** the rating on the security has been changed within the seven calendar days immediately prior to the date of the proposed transaction.

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**A. Initial Holdings**

<u>All Associates</u> must disclose and certify, via myTRPcompliance<u>,</u> any shares of TRPG securities that they Beneficially Own no later than <u>ten calendar days</u> after they become subject to this Policy.

<u>Access Persons</u> must disclose and certify, via myTRPcompliance<u>,</u> all holdings in the following securities in which they have a Beneficial Interest or Control (the "Initial Holdings Report"**)** no later than <u>ten calendar days</u> after the become subject to the Policy as an Access Person:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Individual equity securities, including any derivatives (*e.g.,* options, futures, etc.) of these securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Bonds, including any derivatives of these securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ETFs, including any derivatives of these securities;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Unit investment trusts and listed closed end funds;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Private Placements;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Products (AUTs, ITMs, ETFs, mutual funds, OEICs, 529 portfolios, SICAVs, trusts) advised by a Price Adviser; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Products sub-advised by a Price Adviser.

The Initial Holdings Report must be current as of a date no more than <u>45 days</u> prior to the date the individual becomes an Access Person, and include, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The title, number of shares and principal amount of each security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The name of the broker, dealer or bank with whom the Access Person maintains a securities account in which any securities are for the Access Person's direct or indirect benefit; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The date the Access Person submits the Initial Holdings Report.

<u>Securities that are not subject to reporting</u> include, but are not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Bankers' acceptances, bank certificates of deposit and commercial paper;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Currency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cryptocurrency;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Direct obligations of the U.S. Government;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Investment grade, short-term debt instruments, including repurchase agreements (which for these purposes are repurchase agreements and any instrument that has a maturity at issuance of fewer than 366 days that is rated in one of the two highest categories by a nationally recognized statistical rating organization);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Open end mutual funds, including money market funds, advised by a third party;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• UCITS advised by a third-party; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Variable insurance products that invest in third-party funds.

Refer to <u>Exhibit B</u> for applicable exemptions from the reporting requirement.

**B. Annual Compliance Certification**

<u>All Associates</u> must certify annually via myTRPcompliance to, among other things, their securities accounts and transactions and compliance with various firm policies (including the Policy).

<u>Access Persons</u> must certify annually via myTRPcompliance to, among other things, their personal securities holdings, their securities accounts and transactions and compliance with various firm policies (including the Policy).

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**C. Reporting of One – Half of One Percent Ownership** 

An Associate owning more than one half of one percent of the total outstanding shares of a public or private company must immediately disclose such information in writing to Code Compliance via Code_of_Ethics@troweprice.com, providing the name of the company and the total number of such company's shares they Beneficially Own.

Refer to <u>Exhibit B</u> for applicable exceptions from the reporting requirement.

**VIII.&nbsp;&nbsp;&nbsp;&nbsp;<u>ROLES AND RESPONSIBILITIES</u>**

All Associates must attest to receipt and understanding of the Policy: (i) upon becoming subject to it; (ii) on an annual basis; and (iii) whenever material amendments to the Policy are made. In attesting to the Policy, Associates agree to their understanding of the Policy and agree to comply with the requirements of the Policy. See "*Annual Compliance Certification*."

Associates should contact LegalCompliance_EmployeeTrading@TRowePrice.com regarding the applicability, meaning or administration of the Policy, including requests for an exception, <u>in advance</u> of any contemplated transaction.

Code Compliance:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Administers and monitors adherence to the Policy, including reviewing disclosures, providing training and identifying violations; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Maintains and oversees the maintenance of certain records in accordance with applicable legal and regulatory requirements.

The Payroll & Stock Transaction Group provides guidance to Associates when they are transacting in TRPG securities.

The Ethics Committee provides oversight of the Policy, including reviewing exceptions and violations. The Ethics Committee also provides a point of escalation for Code Compliance and the Payroll & Stock Transactions Group.

Material changes to the Policy shall be approved by the Board of TRPG, the board of directors of TRP UK and by the board of directors of each Price Fund, including a majority of the Independent Directors of the Price Funds. Approval of any material change to the Policy by the board of directors of the Price Funds shall be obtained within six months after the change is implemented.

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**IX.&nbsp;&nbsp;&nbsp;&nbsp;<u>VIOLATIONS AND SANCTIONS</u>**

Violations and potential violations of the Policy are typically investigated by Code Compliance or, if necessary, the Ethics Committee. Violations are taken seriously and may result in sanctions or other consequences, including one or more of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A letter of censure or suspension;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disgorgement of profit;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A fine;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A suspension of trading privileges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Consideration in Associate performance review and year-end compensation;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Disciplinary action, up to and including, termination of employment; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any other sanction as may be determined by the Business Unit in consultation with Human Resources and the Ethics Committee.

When tracking violations, Code Compliance generally utilizes a rolling two-year look-back period in the administration of the sanctions guidelines set forth below. All violations of the Policy shall be reported to the Board of Directors of TRPG, the Board of Directors of any Price Fund and any other applicable board. As noted above, however, these sanctions are not the exclusive remedy for violations of this Policy.

<u>First Violation</u> 

&nbsp;&nbsp;&nbsp;&nbsp;• Associate and manager notification; and

&nbsp;&nbsp;&nbsp;&nbsp;• Associate required to complete online remedial training course.

<u>Second Violation</u>

&nbsp;&nbsp;&nbsp;&nbsp;• Associate and escalated manager notifications, up to and including, applicable Management Committee member;

&nbsp;&nbsp;&nbsp;&nbsp;• Associate required to complete online remedial training course;

&nbsp;&nbsp;&nbsp;&nbsp;• Consideration in Associate performance review and year-end compensation;

&nbsp;&nbsp;&nbsp;&nbsp;• Associate required to meet with applicable Chief Compliance Officer and Senior Compliance Manager; and

&nbsp;&nbsp;&nbsp;&nbsp;• Associate fined according to officer or role guidelines.

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| | | | |
|:---|:---|:---|:---|
| **Associate** | **VP, TRPG** | **Investment Personnel** | **Portfolio Manager, Management Committee Member, Direct Report of Management Committee Member**  |
| US $250 | US $750 | US $750 | US $1500 |

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*Subsequent violation(s) may result in disciplinary action, up to and including, termination of employment.* 

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<u>Third Violation</u>

&nbsp;&nbsp;&nbsp;&nbsp;• Associate and escalated manager notifications, up to and including applicable Management Committee member;

&nbsp;&nbsp;&nbsp;&nbsp;• Chief Executive Officer notification;

&nbsp;&nbsp;&nbsp;&nbsp;• Associate required to complete online remedial training course;

&nbsp;&nbsp;&nbsp;&nbsp;• Associate subject to a personal trading prohibition of at least three months;

&nbsp;&nbsp;&nbsp;&nbsp;• Consideration in Associate performance review and year-end compensation;

&nbsp;&nbsp;&nbsp;&nbsp;• Disciplinary action, up to and including, termination of employment; and

&nbsp;&nbsp;&nbsp;&nbsp;• Associate fined according to officer or role guidelines.

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| | | | |
|:---|:---|:---|:---|
| **Associate** | **VP, TRPG** | **Investment Personnel** | **Portfolio Manager, Management Committee Member, Direct Report of Management Committee Member** |
| At least US $500 | At least US $2000 | At least US $2000 | At least US $5000 |

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<u>More than Three Violations</u> 

&nbsp;&nbsp;&nbsp;&nbsp;• Along with the notifications and sanctions listed above for a third violation, evaluation of additional sanctions to be determined by the Business Unit in consultation with Human Resources and the Ethics Committee.

&nbsp;&nbsp;&nbsp;&nbsp;• Consideration in Associate performance review and year-end compensation;

&nbsp;&nbsp;&nbsp;&nbsp;• Associate subject to an extended personal trading prohibition; and

&nbsp;&nbsp;&nbsp;&nbsp;• Disciplinary action, up to and including, termination of employment.

**X. &nbsp;&nbsp;&nbsp;&nbsp;<u>EXCEPTIONS AND INTERPRETATIONS</u>** 

Code Compliance, in conjunction with the Ethics Committee, may grant an exception from any provision of the Policy, including pre-clearance, other trading restrictions, and certain reporting requirements. Exceptions will be considered on a case-by-case basis if it is determined that the proposed conduct involves no opportunity for abuse and does not conflict with client interests. Exceptions are expected to be rare.

From time to time, situations may arise with respect to certain provisions of this Policy that require interpretation. Associates may submit a written request for clarification or interpretation to Code Compliance (Code_of_Ethics@TRowePrice.com). Any such request for clarification or interpretation should name the account, the Associate's interest in the account, the persons or firms responsible for its management, and the specific facts of the situation. **Associates may not assume that the Policy (or a specific provision of the Policy) is not applicable to their situation.** Code Compliance will provide a response to each properly submitted request for clarification or interpretation. When in doubt, Associates must not proceed with a transaction or course of action until they receive a response from Code Compliance.

**XI.&nbsp;&nbsp;&nbsp;&nbsp;<u>DEFINED TERMS</u>**

***AUT*** means Australian unit trusts.

***Beneficial Owner*** means an individual with the opportunity, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, to share at any time in any economic interest or profit derived from ownership of or a transaction in a security. An Associate may be deemed to be the Beneficial Owner of securities belonging to others and not registered in their name.

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The SEC will presume that a person Beneficially Owns securities held by a Family Member who shares their household or securities held by a trust of which the individual is a beneficiary or a trustee with investment Control.

An individual is not considered to be the Beneficial Owner of a 401(k) account, individual retirement account or a transfer upon death account for which they are solely a named beneficiary, assuming the individual does not reside with the Family Member and does not have the ability to Control and/or direct transactions in such account.

***Blackout Period*** means the period from the second trading day after quarter end (or such other date as management shall determine) through the end of the first trading day following when TRPG's earnings release is filed with the SEC. Quarterly notifications with respect to the Blackout Period are published on the firm's intranet site.

***Control*** means the power to exercise a controlling influence over the management or policies of a company unless such power is solely the result of an official position with such company. Ownership of more than 25% of a company's outstanding voting securities is presumed to give the holder thereof Control over the company.

***ESPP*** means the T. Rowe Price Group, Inc. Employee Stock Purchase Plan.

***ETF*** means exchange traded fund.

***Exchange traded fund or ETF*** means an investment fund that is traded on a stock exchange.

***Family Member*** means the Associate's spouse, domestic partner, parent, stepparent, child, stepchild, sibling, grandparent, or in-law (including mother, father, sister, brother, daughter or son) sharing the same household as the Associate.

***Independent Director of TRPG, TRP UK, the SICAVs, or the Cayman Funds*** means those directors who are neither officers nor employees of TRPG or any of its subsidiaries.

***Investment Personnel*** means an Access Person who, in connection with their regular functions or duties, makes or participates in making, or is closely associated with personnel who make recommendations regarding the purchase or sale of securities by a Price Adviser client.

The term "Investment Personnel" includes, but is not limited to:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Individuals who are authorized to make investment decisions or to recommend securities transactions on behalf of the firm's clients (investment counselors and members of the mutual fund advisory committees);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Research and credit analysts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Traders who assist in the investment process; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Support staff who assist in the investment process.

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***Investment Advisers Act*** means the U.S. Investment Advisers Act of 1940, as amended.

***Investment Company Act*** means the U.S. Investment Company Act of 1940, as amended.

***ITM*** means an investment trust management company.

***OEIC*** means open-ended investment company.

***Price Adviser*** means a subsidiary of T. Rowe Price Group, Inc. that is an investment adviser entity registered with the SEC. For the avoidance of doubt, "Price Adviser" does not include Oak Hill Advisors, L.P. and its subsidiaries.

***Price ETFs*** means the T. Rowe Price Exchange-Traded Funds, the family of ETFs advised by a Price Adviser.

***Price Funds*** means any T. Rowe Price-sponsored fund registered under the Investment Company Act, including but not limited to, the T. Rowe Price Mutual Funds and the Price ETFs, and advised by a Price Adviser.

***Price Funds' Independent Directors*** means those directors of the Price Funds who are not deemed to be "interested persons" (as defined in Section 2(a)(19) of the Investment Company Act) of T. Rowe Price Group, Inc. or the Price Funds.

***Private Placement*** means an offering that is exempt from registration by a regulatory authority and sold through a private offering. For purposes of the Policy, investments made: (i) in a small business sourced through family, friends or any other referral source; and (ii) through a crowdfunding site that matches entrepreneurs with investors, through which investors receive an equity stake in the business, are considered Private Placements (*e.g.,* Seedrs, OurCrowd, Crowdcube).

***Reportable Fund*** means any open-end investment company for which any of the Price Advisers serves as an investment adviser. The term Reportable Fund includes:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Price Funds, including money market funds and the Price ETFs;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• UCITs advised by a Price Adviser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• SICAVs advised by a Price Adviser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• OEICs advised by a Price Adviser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• ITMs advised by a Price Adviser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• AUTs advised by a Price Adviser;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any fund managed by a Price Adviser through a sub-advised relationship, including an ETF;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any fund offered through retirement plans (*e.g.,* 401(k) plans) other than the T. Rowe Price U.S. Retirement Plan; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Any fund managed by a Price Adviser that is an investment option offered as part of a variable annuity.

Code Compliance maintains a list of sub-advised Reportable Funds on the firm's intranet site.

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***SEC*** means the U.S. Securities and Exchange Commission.

***SICAV*** means société d'investissement à capital variable.

***T. Rowe Price*** means T. Rowe Price Group, Inc. and its subsidiaries, except Oak Hill Advisors, L.P. and its subsidiaries.

***TRPG Independent Director*** means those directors of TRPG who are neither officers nor employees of TRPG or any of its subsidiaries.

***TRPG*** means T. Rowe Price Group, Inc.

***TRPG securities*** means any security issued by T. Rowe Price Group, Inc.

***UCITs*** means Undertakings for Collective Investments in Transferrable Securities.

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**EXHIBIT A**

**CODE OF ETHICS AND PERSONAL TRANSACTION POLICY**

**Provisions Applicable to Independent Directors**

**I.&nbsp;&nbsp;&nbsp;&nbsp;<u>INTRODUCTION</u>**

This Exhibit A sets forth the responsibilities of the Independent Directors of TRPG, TRP UK, SICAVs, Cayman Funds and Price Funds under this *<u>Code of Ethics and Personal Transactions Policy.</u>* Defined terms used herein are the same as those used in the Policy.

The Independent Directors are subject to the requirements set forth below.

**II.&nbsp;&nbsp;&nbsp;&nbsp;<u>REQUIREMENTS FOR THE INDEPENDENT DIRECTORS OF TRPG OR ITS SUBSIDIARIES, OTHER THAN TRP UK</u>**

**Pre-clearance.** The personal securities trades of TRPG Independent Directors are **<u>not</u>** subject to pre-clearance requirements, <u>except for transactions in TRPG securities</u> for which they are the Beneficial Owner. Pre-clearance is also required when:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Transferring TRPG securities to another person, entity, or trust account; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Giving or receiving TRPG securities, including donation transactions into donor-advised funds such as T. Rowe Price Charitable Foundation.

Pre-clearance is <u>not</u> required when moving shares of TRPG securities between securities firms or to/from individual or joint brokerage accounts.

Requests for pre-clearance must be submitted to the Payroll & Stock Transactions Group. Pre-clearance is effective for <u>the day it is received and the following business day</u> (taking into consideration the time zone), unless the Independent Director: (i) is advised to the contrary by the Payroll & Stock Transaction Group prior to the proposed transaction; or (ii) comes into possession of material, non-public information concerning T. Rowe Price. Any trades not executed within the prescribed timeframe must be re-submitted.

TRPG Independent Directors may not initiate transactions in TRPG securities during the Blackout Period.

**Reporting.** TRPG Independent Directors are not required to report their personal securities transactions (other than transactions in TRPG securities). If, however, the Independent Director has obtained information about a Price Adviser's investment research, recommendations, or transactions, they must not transact in the securities of the issuers about which they have information.

Independent Directors are reminded that changes to information reported in the Annual Questionnaire for Independent Directors must be reported to Corporate Funds and Administration *(e.g.,* changes in holdings of stock of financial institutions or financial institution holding companies).

**Reporting of Officership, Directorship, General Partnership or Other Managerial Positions Apart from TRPG.** An Independent Director shall report to Code Compliance any officership, directorship, general partnership or other managerial position which they hold with any public, private, or governmental issuer other than TRPG or any of its subsidiaries.

**Reporting of Significant Ownership.** 

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Issuers (other than a non-public investment partnership, pool or fund).* If a TRPG Independent Director owns more than ½ of 1% of the total outstanding shares of a public or private issuer, they must report such ownership in writing to Code Compliance, providing the name of the issuer and the total number of the issuer's shares Beneficially Owned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Non-public investment partnerships, pools or funds*. If a TRPG Independent Director owns more than ½ of 1% of the total outstanding shares or units of a non-public investment partnership, pool or fund over which the Independent Director exercises Control or influence, they must report such ownership in writing to Code Compliance. For non-public investment partnerships, pools or funds where the Independent Director does not exercise Control or influence, they need not report such ownership to Code Compliance unless and until such ownership exceeds 4% of the total outstanding shares or units of the entity.

**III.**&nbsp;&nbsp;&nbsp;&nbsp;**<u>REQUIREMENTS FOR THE INDEPENDENT DIRECTORS OF TRP UK, THE SICAVS AND THE CAYMAN FUNDS</u>**

**TRPG securities.** The Independent Directors of TRP UK, the SICAVs, or the Cayman Funds may not own TRPG securities in any account of which they are the Beneficial Owner.

**Pre-clearance.** The personal securities trades of the Independent Directors of TRP UK, the SICAVs, or the Cayman Funds are not subject to pre-clearance requirements, as long as the Independent Director had no knowledge of trading involving the Price Funds or the funds overseen by TRP UK, SICAVs, or the Cayman Funds.

**Reporting of Officership, Directorship, General Partnership or Other Managerial Positions Apart from TRPG.** An Independent Director of TRP UK, the SICAVs, or the Cayman Funds shall report to Corporate and Funds Administration any officership, directorship, general partnership or other managerial position which they hold with any public, private, or governmental issuer.

**Reporting of Significant Ownership.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Issuers (other than a non-public investment partnership, pool or fund).* If an Independent Director of TRP UK, the SICAVs, or the Cayman Funds owns more than ½ of 1% of the total outstanding shares of a public or private issuer, they must report such ownership in writing to Corporate and Funds Administration, providing the name of the issuer and the total number of the issuer's shares Beneficially Owned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Non-public investment partnerships, pools or funds*. If an Independent Director of TRP UK, the SICAVs, or the Cayman Funds owns more than ½ of 1% of the total outstanding shares or units of a non-public investment partnership, pool or fund over which the Independent Director exercises Control or influence, they must report such ownership in writing to Corporate and Funds Administration. For non-public investment partnerships, pools or funds where the Independent Director does not exercise Control or influence, they need not report such ownership to Corporate and Funds Administration unless and until such ownership exceeds 4% of the total outstanding shares or units of the entity.

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**IV.**&nbsp;&nbsp;&nbsp;&nbsp;**<u>REQUIREMENTS FOR THE INDEPENDENT DIRECTORS OF PRICE FUNDS</u>**

**TRPG securities.** The Independent Directors of the Price Funds may not own TRPG securities in any account of which they are the Beneficial Owner.

**Pre-clearance.** The personal securities trades of the Independent Directors of the Price Funds are not subject to pre-clearance requirements, as long as the Independent Director had no knowledge of trading involving the Price Funds.

**Reporting.**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Transactions in Publicly Traded Securities.* A Price Funds' Independent Director must report transactions in publicly-traded securities in which they have Beneficial Ownership.

An Independent Director is not required to report securities transactions in accounts over which they have no direct or indirect influence, such as an account over which they have granted full investment discretion to a financial adviser. The Independent Director should contact Code Compliance to request approval to exempt any such accounts from this reporting requirement.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Transactions in Non-Publicly-Traded Securities*. A Price Funds' Independent Director is not required to report transactions in securities which are not traded on an exchange, unless the Independent Director knew, or in the ordinary course of fulfilling their official duties as an Independent Director, should have known that during the <u>15-day period</u> immediately before or after the Independent Director's transaction in such non-publicly-traded security, a Price Adviser purchased, sold or considered purchasing or selling such security for a Price Fund or Price Adviser client.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Methods of Reporting.* 

<u>Duplicate Trade Confirmations.</u> A Price Funds' Independent Director may satisfy their obligation to report transactions in securities by arranging for the executing brokers to provide duplicate trade confirmations directly to Code Compliance.

<u>Quarterly Report Requirements</u>. If a Price Funds' Independent Director elects to report their transactions by submitting a quarterly report: (i) the report must be filed with Code Compliance no later than 30 days after the end of the calendar quarter in which the transaction was effected; and (ii) the report must be filed for each quarter, regardless of whether there were any reportable transactions.

Among the types of transactions that are commonly <u>not</u> reported through a broker confirmation and may therefore have to be reported directly to T. Rowe Price on a quarterly basis are:

oRetirement plan account activity that occurs in a Reportable Fund;

oT. Rowe Price-advised products;

oIncentive plan account activity;

oExercise of stock options of a corporate employer;

oAn inheritance of a security;

oA gift of a security; and

oTransactions in certain commodity futures contracts (*e.g.,* financial indices).

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A Price Funds' Independent Director must include any transactions listed above, if applicable, in their quarterly reports if they are not included in a duplicate broker confirmation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Reporting of Officership, Directorship, General Partnership or Other Managerial Positions Apart from the Price Funds.* A Price Funds' Independent Director must report to Corporate Funds and Administration any officership, directorship, general partnership or other managerial position which they hold with any public, private or governmental issuer other than the Price Funds.

**Reporting of Significant Ownership.** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Issuers (other than non-public investment partnerships, pools or funds).* If a Price Funds' Independent Director owns more than ½ of 1% of the total outstanding shares of a public or private issuer (other than a non-public investment partnership, pool or fund), they must report such ownership immediately in writing to Code Compliance, providing the name of the issuer and the total number of the issuer's shares Beneficially Owned.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• *Non-Public Investment Partnerships, Pools or Funds.* If a Price Funds' Independent Director owns more than ½ of 1% of the total outstanding shares or units of a non-public investment partnership, pool or fund over which they exercise Control or influence, the Independent Director must report such ownership in writing to Code Compliance. For non-public investment partnerships, pools or funds where the Independent Director does not exercise Control or influence, they need not report such ownership to Code Compliance unless and until such ownership exceeds 4% of the total outstanding shares or units of the entity. **&nbsp;&nbsp;&nbsp;&nbsp;** 

**Prohibitions.** A Price Funds' Independent Director may not:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Purchase or sell the shares of a broker-dealer, underwriter or SEC-registered investment adviser unless that entity is traded on an exchange, or the purchase or sale has otherwise been approved by the Price Funds' board; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Knowingly transact with a Price Fund, other than in connection with market transactions effected through securities exchanges. This prohibition does not preclude the purchase or redemption of shares of any open-end mutual fund or purchase or sale of any shares of a Price ETF that is a client of any Price Adviser.

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**Transactions in Price ETFs.** Following is a summary of requirements applicable when Price Funds' Independent Directors transact in Price ETFs:

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| | |
|:---|:---|
| | **Independent Directors of Price Funds** |
| Obtain pre-clearance for trades in Price ETFs | No |
| Post-report trades in Price ETFs | Yes |
| Subject to the holding period | No |
| Subject to ad hoc trading restrictions  | Yes |
| Ability to buy/sell Price ETFs in the primary market | No |
| Ability to sell short Price ETFs | No |
| Ability to transact in options of the Price ETFs | No |

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**V.&nbsp;&nbsp;&nbsp;&nbsp;<u>VIOLATIONS</u>**

**Violations by Independent Directors of TRPG, the Price Funds, TRP UK, the SICAVs, or the Cayman Funds.** Upon discovering a material violation of the Policy by an Independent Director of TRPG, the Price Funds, TRP UK, the SICAVs, or the Cayman Funds, the applicable board of directors will impose such sanctions as it deems appropriate.

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**EXHIBIT B**

**CODE OF ETHICS AND PERSONAL TRANSACTIONS POLICY**

**Pre-clearance and Reporting Matrix**

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **<u>Access Person</u> Pre-clearance** | **<u>Access Person</u> Reporting** | **<u>Associate</u>**<br>**Pre-clearance** | **<u>Associate</u> Reporting** |
| **Stocks/Bonds/Derivatives**<br>(Refer to "*Transacting in TRPG Securities"* for specific information relating to trading in TRPG securities) | **Stocks/Bonds/Derivatives**<br>(Refer to "*Transacting in TRPG Securities"* for specific information relating to trading in TRPG securities) | **Stocks/Bonds/Derivatives**<br>(Refer to "*Transacting in TRPG Securities"* for specific information relating to trading in TRPG securities) | **Stocks/Bonds/Derivatives**<br>(Refer to "*Transacting in TRPG Securities"* for specific information relating to trading in TRPG securities) | **Stocks/Bonds/Derivatives**<br>(Refer to "*Transacting in TRPG Securities"* for specific information relating to trading in TRPG securities) |
| Equity securities | Yes | Yes | No | Yes |
| Fixed income securities  | Yes | Yes | No | Yes |
| Corporate and Municipal Bonds | Yes | Yes | No | Yes |
| Derivative instruments | Yes | Yes | No | Yes |
| Writing an option to purchase or sell a security | Yes | Yes | No | Yes |
| Subsequent sale of stock obtained by means of the exercise of stock options | Yes | Yes | No | Yes |
| Exercise of stock option of corporate employer by Access Person's spouse. | No | Yes | No | Yes |
| Restricted stock plan automatic sales for tax purposes by Access Person's spouse | No | Yes | No | Yes |
| **Collective Investment Products**<br>(Refer to "*Transacting in ETFs"* for specific information relating to trading in ETFs) | **Collective Investment Products**<br>(Refer to "*Transacting in ETFs"* for specific information relating to trading in ETFs) | **Collective Investment Products**<br>(Refer to "*Transacting in ETFs"* for specific information relating to trading in ETFs) | **Collective Investment Products**<br>(Refer to "*Transacting in ETFs"* for specific information relating to trading in ETFs) | **Collective Investment Products**<br>(Refer to "*Transacting in ETFs"* for specific information relating to trading in ETFs) |
| T. Rowe Price products (including the AUTs, ITMs, mutual funds, OEICs, 529 portfolios, SICAVs, and trusts | No | Yes | No | Yes |
| Exchange listed collective investment vehicles (including closed-end funds)  | No | Yes | No | Yes |
| Third-party mutual funds, 529 portfolios, OEICs, SICAVs and variable insurance products  | No | No | No | No |
| Unit investment trusts | No | No | No | No |
| Donor-advised funds | No | No | No | No |
| **Private Placements** | **Private Placements** | **Private Placements** | **Private Placements** | **Private Placements** |
| Private Placements | Yes<br>(see *Section IV.C*)  | Yes | No\* | No\* |
| Capital calls for Private Placement investments  | No | Yes | No | No |
| Distributions received from a Private Placement investment | N/A | No | N/A | No |
| **Other Securities** | **Other Securities** | **Other Securities** | **Other Securities** | **Other Securities** |
| Commercial paper and similar instruments (bankers acceptances, bank certificates of deposit, commercial paper and high quality, short-term debt instruments, including repurchase agreements)  | No | No | No | No |
| U.S. Government obligations | No | No | No | No |
| National (other than U.S.) government obligations | No | Yes | No | Yes |
| Currency | No | No | No | No |
| Securitized or financial instruments used for currency exposure | No | Yes | No | No |
| Cryptocurrency (*e.g.,* Bitcoin, Ethereum) | No | No | No | No |
| Publicly traded cryptocurrency tracker instruments (ETFs) | No | Yes | No | Yes |
| Variable rate demand notes | No | Yes | No | Yes |
| \*FINRA-registered representatives are required to request pre-clearance and report | \*FINRA-registered representatives are required to request pre-clearance and report | \*FINRA-registered representatives are required to request pre-clearance and report | \*FINRA-registered representatives are required to request pre-clearance and report | \*FINRA-registered representatives are required to request pre-clearance and report |

---

------

---

| | | | | |
|:---|:---|:---|:---|:---|
|  | **<u>Access Person</u> Pre-clearance** | **<u>Access Person</u> Reporting** | **<u>Associate</u>**<br>**Pre-clearance** | **<u>Associate</u> Reporting** |
| **Transactions** | **Transactions** | **Transactions** | **Transactions** | **Transactions** |
| Securities acquired through an Automatic Investment Plan (initial investment)<sup>4</sup> | Yes | Yes | No | Yes |
| Securities acquired through an Automatic Investment Plan (subsequent investments) | No | Yes | No | Yes |
| Non-systemic investment through an Automatic Investment Plan<sup>5</sup> | Yes | Yes | No | Yes |
| Acquisition of securities through inheritance | No | Yes | No | Yes |
| Giving stock (non-TRPG) as a gift | No | Yes | No | Yes |
| Pro-rata distributions | No | Yes | No | Yes |
| Tender offers | No | Yes | No | Yes |
| Merger election (voluntary) | Yes | Yes | No | Yes |
| Mandatory acquisition of additional shares or the disposition of existing corporate holdings through stock splits, reverse stock splits, stock dividends, exercise of rights, exchange or conversion | No | Yes<br>*(within 30 days of the end of the quarter in which the transaction occurred)* | No | Yes<br>*(within 30 days of the end of the quarter in which the transaction occurred)* |
| Purchases, but not sales, by an Access Person's spouse pursuant to an employee-sponsored payroll deduction plan (as long as Code Compliance has been notified that the spouse will be participating in such plan) | No | Yes<br>*(within 30 days of the end of the quarter in which the transaction occurred)* | No | Yes<br>*(within 30 days of the end of the quarter in which the transaction occurred)* |
| Sale or exchange of stock held in an Access Person's spouse's payroll deduction plan | Yes | Yes | No | Yes |
| Sale of partial shares held in an account when the account is transferred to another broker-dealer or to new owner or partial shares sold automatically by the broker-dealer. | No | Yes | No | Yes |
| Transactions effected in a robo-adviser account (investing solely in third party collective investment vehicles) | No | No | No | No |

---

<sup>4</sup> A program in which regular, periodic purchases (or withdrawals) are made automatically in (or from) investment accounts in accordance with a predetermined schedule and allocation. An Automatic Investment Plan includes a dividend reinvestment plan.

<sup>5</sup> A transaction that overrides the preset schedule or allocations of an Automatic Investment Plan.

## Ex-99.(P)(28)

Code of Ethics for Victory Capital Management Inc. and WestEnd Advisors, LLC

Effective April 1, 2025

Previously updated: July 1, 2023

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&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;

---

| | | | |
|:---|:---|:---|:---|
| **1.** | **Introduction** | **Introduction** | **1** |
| **2.** | **Definitions** | **Definitions** | **2** |
| **3.** | **Culture of Compliance** | **Culture of Compliance** | **4** |
| **4.** | **Policy Statement on Insider Trading** | **Policy Statement on Insider Trading** | **5** |
|  | A. | Introduction | 5 |
|  | B. | Scope of the Policy Statement | 5 |
|  | C. | What is Material Information? | 5 |
|  | D. | What is Non-Public Information?  | 6 |
|  | E. | Identifying Inside Information | 7 |
|  | F. | Contact with Public Companies | 7 |
|  | G. | Tender Offers  | 7 |
|  | H. | Protecting Sensitive Information | 7 |
|  | I. | Trading in Securities Listed on Exchanges in Other Countries  | 8 |
|  | J. | Public Company Confidential Records  | 8 |
| **5.** | **Conflicts of Interest** | **Conflicts of Interest** | **8** |
|  | A. | Gifts and Entertainment | 9 |
|  | B. | Political Contributions | 10 |
|  | C. | Outside Business Activities | 11 |
|  | D. | Other Prohibitions on Conduct | 12 |
|  | E. | Review of Employee Communications | 13 |
| **6.** | **Standards of Business Conduct** | **Standards of Business Conduct** | **13** |
| **7.** | **Personal Trading, Code of Ethics Reporting and Certifications** | **Personal Trading, Code of Ethics Reporting and Certifications** | **13** |
|  | A. | Employee Investment Accounts  | 13 |
|  | B. | Employee Investment Account Reporting | 14 |
|  | C. | Personal Trading Requirements and Restrictions | 15 |
|  | D. | Representation and Warranties | 18 |
|  | E. | Quarterly and Annual Certifications of Compliance | 18 |
|  | F. | Review Procedures  | 19 |
|  | G. | Recordkeeping | 19 |
|  | H. | Whistleblower Provisions  | 19 |
|  | I. | Confidentiality  | 19 |
|  | J. | Reporting to the Board of Directors of Affiliated Funds | 19 |
| **8.** | **Code of Ethics Violation Guidelines** | **Code of Ethics Violation Guidelines** | **20** |
|  | **Appendix 1** – Affiliated Funds, Proprietary Products & Reportable Funds | **Appendix 1** – Affiliated Funds, Proprietary Products & Reportable Funds | i |
|  | **Appendix 2** – Approved Brokers List  | **Appendix 2** – Approved Brokers List  | ii |
|  | **Appendix 3** – Investment Account Disclosure  | **Appendix 3** – Investment Account Disclosure  | iii |
|  | **Appendix 4** – Preclearance and Reporting By Security Type  | **Appendix 4** – Preclearance and Reporting By Security Type  | iv |
|  | **Appendix 5** – ETFs Eligible for De Minimis Transaction Exemption | **Appendix 5** – ETFs Eligible for De Minimis Transaction Exemption | vi |
|  | **Supplement 1** - RS Investment Management (Singapore) Pte. Ltd. ("RSIMS") Code of Ethics Supplement ("Singapore Supplement")  | **Supplement 1** - RS Investment Management (Singapore) Pte. Ltd. ("RSIMS") Code of Ethics Supplement ("Singapore Supplement")  | vii |

---

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**1.&nbsp;&nbsp;&nbsp;&nbsp;INTRODUCTION** 

Rule 204A-1 of the Investment Advisers Act of 1940 ("Advisers Act") requires all investment advisers registered with the Securities and Exchange Commission ("SEC") to adopt codes of ethics that set forth standards of conduct and require compliance with federal securities laws. Victory Capital Management Inc. ("VCM") and WestEnd Advisors, LLC ("WestEnd") are both registered investment advisers under the Advisers Act and also both wholly owned subsidiaries of Victory Capital Holdings, Inc. ("VCH"). WestEnd and VCM, together with VCM's subsidiaries, RS Investments (UK) Limited, RS Investments (Hong Kong) Limited, and RS Investment Management (Singapore) Pte. Ltd. (collectively the "Affiliated Advisers"), have adopted this Code of Ethics ("Code"), which sets forth the standards of business conduct that are required of Access Persons*.* As an adviser to regulated investment companies, VCM also adopts this Code in adherence to Rule 17j-1<sup>1</sup> under the Investment Company Act of 1940, as amended (the "Investment Company Act"). Officers and employees of RS Investments (Hong Kong) Limited and RS Investment Management (Singapore) Pte. Ltd. should also review the related Code supplements.

VCH is a Delaware corporation with its Class A common stock listed on the NASDAQ Global Select Market, under the ticker symbol "VCTR." As a public company, compliance policies were adopted that apply to VCH and the Affiliated Advisers (collectively "Victory Capital'). The VCH policies are in addition to the compliance program of the Affiliated Advisers. In particular, the policies that apply to Victory Capital include: (1) Code of Business Conduct and Ethics, (2) Corporate Communications Policy and (3) Insider Trading Policy. Affiliated Advisers make these policies readily available to their Access Persons.

Victory Capital Services, Inc. ("VCS"), is a Victory Capital affiliated broker-dealer that (i) provides marketing and distribution support for the Victory Funds and the 529 Plan; (ii) introduces retail customers to the Victory Funds and the 529 Plan on a direct-application basis; and (iii) introduces retail customers to a clearing broker-dealer pursuant to a fully-disclosed clearing arrangement.

Access Persons have a responsibility to adhere to the highest ethical principles. Thus, the Code imposes obligations in addition to those required under applicable laws and regulations. The Code is a minimum standard of conduct. Additionally, Access Persons must act in accordance with their fiduciary duty owed to Affiliated Adviser clients. Therefore, literal compliance with the Code will not protect an Access Persons if their behavior otherwise violates their fiduciary duty. If an Access Person is uncertain as to the intent or purpose of any provision of the Code, or whether a proposed action is compatible with their fiduciary duty, they should consult the appropriate Affiliated Adviser Chief Compliance Officer ("CCO") or a member of the Compliance team.

The Affiliated Advisers recognize the importance of an Access Person's ability to manage and develop their own and their dependents' financial resources through long-term investments and strategies. However, because of the potential conflicts of interest inherent in our business and our industry, the Affiliated Advisers have implemented certain standards and limitations designed to minimize these conflicts.

Victory Capital's reputation is of paramount importance; therefore, the Affiliated Advisers will not tolerate blemishes due to careless personal trading or other conduct prohibited by the Code. Consequently, Material Violations (as defined herein) of the Code may be subject to harsh sanctions. Frequent violations of the Code may result in limitations on personal securities trading or other disciplinary actions, which can include termination of employment.

<sup>1</sup> Rule 17j-1 requires that fund advisers adopt written codes of ethics and have procedures in place to prevent their personnel from abusing their access to information about the fund's securities trading and requires "access persons" to submit reports periodically containing information about their personal securities holdings and transactions.

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**2.&nbsp;&nbsp;&nbsp;&nbsp;DEFINITIONS** 

<u>"Access Person"</u> means any employee of VCM. It also includes anyone deemed an Access Person by a CCO. As a matter of practice, the Board of Directors of the Victory Portfolios, Victory Portfolios II, Victory Portfolios III, Victory Portfolios IV, Victory Variable Insurance Funds, Victory Variable Insurance Funds II, and the Pioneer Closed-End Funds (collectively the "Victory Funds") generally consists of members who are not employees or officers of Victory Capital, or their affiliates. Unless designated by the COO, a non-employee director is not treated as an "access person" within the meaning of Rule 204A-1 under the Advisers Act and is not treated as either an "access person" or an "advisory person" of VCM.

<u>"Affiliated Funds"</u> means any individual series portfolio of the Victory Funds, as well as other sub-advised affiliates listed in Appendix 1, each an investment company registered under the Investment Company Act.

"<u>Automatic or Periodic Investment Plan"</u> is a program in which regular periodic purchases (or withdrawals) are made automatically in (or from) investment accounts in accordance with a predetermined schedule and allocation. An Automatic Investment Plan includes a dividend reinvestment plan.

<u>"Beneficial Interest"</u> means the opportunity, directly or indirectly, through any contract, arrangement, understanding, relationship or otherwise, to profit, or share in any profit derived from, a transaction in the subject Securities. An Access Person is deemed to have a Beneficial Interest in securities owned by members of his or her Immediate Family. Common examples of Beneficial Interest include joint accounts, spousal accounts (including Non-Victory Capital Employee Compensation Programs, Non-Victory Capital Employee Stock Participation Program, and Employer-Sponsored Retirement Plan Accounts), Uniform Transfers to Minors Act accounts, partnerships, trusts and controlling interests in corporations. Any uncertainty as to whether an Access Person has a Beneficial Interest in a Security should be brought to the attention of the Compliance Department. Such questions will be resolved in accordance with, and this definition shall be interpreted in a manner consistent with, the definition of "beneficial owner" set forth in Rules 16a-1(a)(2) and (5) promulgated under the Securities Exchange Act of 1934.

<u>"Blackout Period"</u> means seven (7) calendar days before through seven (7) calendar days after the date a client trade is executed for VCM or the month in which a security is added to the Securities Under Consideration list for WestEnd.

<u>"Business Entertainment"</u> includes any social event, hospitality event, charitable event, sporting event, entertainment event, meal, leisure activity or event of like nature or purpose, and any transportation or lodging accompanying or related to such activity or event, including any entertainment activity offered in connection with an educational event or business conference, irrespective of whether any business is conducted during, or is attendant to, such activity.

<u>"Covered Government Official</u>" means a 1) state or local governmental official; 2) candidate for state or local office; or 3) federal candidate currently holding state or local office. A governmental "official" includes an incumbent, candidate, or successful candidate for elective office of a state or local government entity, if the office is directly or indirectly responsible for, or can influence the outcome of, the hiring of an investment adviser, or has authority to appoint any person who is directly or indirectly responsible for, or can influence the outcome of, the hiring of an investment adviser, by a state or a political subdivision of a state.

 <u>"De Minimis Security</u>" means an ETF listed in Appendix 5 of this Code of Ethics. In certain situations, a client trade in a De Minimis Security may not trigger a Blackout Period (see *Section 7.C. Personal Trading Requirements and Restrictions* for more detailed information). Personal Trades in De Minimis Securities in Personal Accounts always require pre-clearance and are subject to all other provisions of the Code.

<u>"De Minimis Trade"</u> means a Personal Trade Request that at the time is request is either 1) for an equity security with a market capitalization between $3 billion and $50 billion and the market value for the request is less than $10,000 or 2) for an equity security with a market capitalization above $50 billion and the market value for the request is less than $50,000. In certain situations, a De Minimis Trade may not trigger a Blackout Period (see *Section 7.C. Personal Trading Requirements and Restrictions* for more detailed information). Personal Trades in De Minimis Securities in Personal Accounts always require pre-clearance and are subject to all other provisions of the Code.

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<u>"Exempt Securities"</u> means 1) direct obligations of the U.S. Government; 2) bankers' acceptances, bank certificates of deposit and commercial paper; 3) investment grade, short-term debt instruments, including repurchase agreements; 4) shares held in money market funds; 5) variable insurance products that invest in funds for which an Affiliated Adviser does not act as adviser or sub-adviser; 6) open-end mutual funds for which an Affiliated Advisers does not act as adviser or sub-adviser; and 7) investments in qualified tuition programs ("529 Plans"). Exempt Securities do not need to be pre-cleared.

<u>"Franchise"</u> means a group of employees who report directly or indirectly to the same Chief Investment Officer that oversees a brand-named strategy

"<u>Immediate Family</u>" means all family members who share the same household, including but not limited to, a spouse, domestic partner, fiancée, parents, grandparents, children, grandchildren, siblings, step-siblings, step-children, step-parents, or in-laws. Immediate Family includes adoptive relationships and any other relationships (whether or not recognized by law) that a CCO determines could lead to conflicts of interest, diversions of corporate opportunity, or create the appearance of impropriety.

"<u>Initial Holdings Report</u>" is a report that discloses all securities holdings of every Access Person, which must be submitted to the Compliance Department within ten (10) calendar days of becoming an Access Person.

"<u>Initial Public Offering" or "IPO"</u> means an offering of securities registered under the Securities Act of 1933, the issuer of which, immediately before such registration, was not subject to the reporting requirements of Sections 13 or 15(d) of the 1934 Act.

<u>"Managed Accounts"</u> means investment advisory or brokerage accounts over which an Access Person has no direct or indirect influence or control in the investment decisions or activities.

"<u>Material Non-Public Information" or "MNPI"</u> means information that is both <u>material</u> *and* <u>non-public</u> that might have an effect on the market for a security. Access Persons who possess MNPI must not act or cause others to act on such information.

<u>"Material Violation"</u> means any violation of this Code or other misconduct deemed material by a CCO, in conjunction with the Compliance Committee or the VCM Board of Directors.

"<u>Maximum Allowable Trades</u>" means Access Persons are limited to 15 trades in individual securities per calendar quarter across their Personal Accounts. A trade in the same security in multiple accounts on the same day will count as one trade towards the Maximum Allowable Trades in a quarter. Individual securities transactions that do not require pre-clearance (i.e. open-end mutual funds, dividend reinvestments) will not count towards the Maximum Allowable Trades.

<u>"MCO"</u> means MyComplianceOffice, which is a web-based compliance system used to track and approve employee personal trading, gifts and entertainment, political contributions, and outside business activities, store policies, and facilitate employee certifications and manage other compliance objectives.

<u>"Personal Account"</u> means an investment account in which an employee retains investment discretion.

"<u>Personal Trading" or "Personal Trades</u>" means trades or transactions by Access Persons in their Personal Accounts.

<u>"Proprietary Product"</u> is a fund or product in which Victory Capital or its employees have an aggregate of 25% or more Beneficial Interest. See *Appendix 1 – Affiliated Funds, Proprietary Products & Reportable Funds* for more information.

<u>"Reportable Fund"</u> means any investment company registered under the Investment Company Act for which an Affiliated Adviser is an investment adviser or a sub-adviser, or any registered investment company whose investment adviser or principal underwriter controls Victory Capital, is controlled by Victory Capital, or is under common control with Victory Capital. See *Appendix 1 – Affiliated Funds, Proprietary Products & Reportable Funds* for more information.

<u>"Reportable Security"</u> means any security that is not an Exempt Security, for which Access persons must submit holdings and transaction reports. See the list of Exempt Securities under *Appendix 4*, as defined by rule 204A-1 under the Investment Advisers Act of 1940.

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<u>"RIC"</u> means a Regulated Investment Company.

<u>"Short-Sell" or "Short-Selling"</u> means the sale of a security that is not owned by the seller. Access Persons may not take a short position in a security. However, mutual funds or ETFs that correspond to the inverse performance of a broad-based index are not considered to be Short-Sales. For example, buying (long) the ProShares Short S&P500 ETF is permitted. Employees may also trade in funds that track a volatility index.

<u>"Solutions Team"</u> means any employee who is a member of the Solutions Platform group, generally involved in passive investments.

"<u>Victory Capital Stock</u>" means securities offered by VCH or any subsidiary through a registration statement that has been declared effective by the SEC (e.g. "VCTR").

**3.&nbsp;&nbsp;&nbsp;&nbsp;CULTURE OF COMPLIANCE** 

The Affiliated Advisers' primary objective is to provide value through investment advisory, sub-advisory and other financial services to a wide range of clients, including governments, corporations, financial institutions, high net worth individuals, pension funds, and retail clients.

The Affiliated Advisers require that all dealings on behalf of existing and prospective clients be handled with honesty, integrity and high ethical standards, and that such dealings adhere to the letter and the spirit of applicable laws, regulations and contractual guidelines. As a general matter, the Affiliated Advisers are fiduciaries that owe their clients a duty of undivided loyalty, and you have a responsibility to act in a manner consistent with this duty. You must actively work to avoid the possibility that the advice or services provided to clients is, or gives the appearance of being, based on your self-interest or the interests of the Affiliated Advisers and not in the clients' best interests. Violations of the Code must be reported promptly to the appropriate CCO or his/her designee.

You must act solely in the best interests of our clients. Statutory and regulatory requirements impose specific responsibilities governing the behavior of personnel in carrying out their responsibilities to clients and you must comply fully with these rules and regulations. Your respective Compliance Department professionals are available to assist you in meeting these requirements.

Since no set of rules can anticipate every possible situation, it is essential that you obtain guidance from the appropriate CCO, Chief Legal Officer ("CLO"), or their designees when you are unsure how to follow these rules in letter and in spirit. It is your responsibility to fully understand and comply with the Code and other applicable policies or seek guidance from a CCO. Technical compliance with the Code and its procedures will not necessarily validate an action. Any activity that compromises the Affiliated Advisers integrity, even if it does not expressly violate a rule, may result in further action from a CCO. In some instances, a CCO holds discretionary authority to apply exceptions under the Code. In a CCO's absence, the CLO may act in his or her place.

The Affiliated Advisers' fiduciary responsibilities apply to a broad range of investment and related activities, including sales and marketing, portfolio management, securities trading, allocation of investment opportunities, client service, operations support, performance measurement and reporting, new product development as well as personal investing activities. These obligations include the duty to avoid material conflicts of interest (and, if this is not possible, to provide full and fair disclosure to clients in communications), to keep accurate books and records, and to supervise personnel appropriately. These concepts are further described in the sections that follow.

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**4.&nbsp;&nbsp;&nbsp;&nbsp;POLICY STATEMENT ON INSIDER TRADING** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.&nbsp;&nbsp;&nbsp;&nbsp;Introduction** 

The Affiliated Advisers seek to foster a culture of compliance, a reputation for integrity, professionalism and values, and endeavors to protect the confidence and trust placed in us by our clients. To further that goal, this Policy Statement implements procedures to deter the misuse of MNPI in securities transactions.

The term "insider trading" is not defined in the federal securities laws but refers generally to the situation when a person trades while aware of MNPI or communicates MNPI to others in breach of a duty of trust or confidence.

While the law concerning insider trading is not static, it is generally understood that the law prohibits any of the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Trading by an insider, while aware of MNPI;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Trading by a non-insider, while aware of MNPI, where the information was disclosed to the non-insider in violation of an insider's duty to keep it confidential; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Communicating MNPI to others in breach of a duty of trust or confidence.

Trading securities while in possession of MNPI or improperly communicating that information to others may result in stringent penalties. Criminal sanctions may include fines of up to $5,000,000, twenty years' imprisonment, or both. The civil penalty for a violator may be an amount up to three times the profit (or loss avoided) as a result of the insider trading violation, and a permanent bar from working in the securities industry. Investors may sue and seek to recover damages for insider trading violations.

Regardless of whether a regulatory inquiry occurs, the Affiliated Advisers take seriously any violation of this Policy Statement. Such violations constitute grounds for disciplinary sanctions, up to and including dismissal.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.&nbsp;&nbsp;&nbsp;&nbsp;Scope of the Policy Statement** 

This Policy Statement is drafted broadly and will be applied and interpreted in a similar manner. It applies to all Access Persons and to transactions in any security participated in by Immediate Family members of Access Persons or trusts or corporations controlled by Access Persons.

Any questions relating to this Policy Statement should be directed to a CCO or his/her designee. You must notify compliance immediately if you have any reason to believe that a violation of this Policy Statement has occurred or is about to occur.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.&nbsp;&nbsp;&nbsp;&nbsp;What is Material Information?** 

Trading on inside information is not a basis for liability unless the information relied upon is deemed to be material. "Material" information is defined generally as information for which there is a substantial likelihood that a reasonable investor would consider it important in making his or her investment decisions, or information that is reasonably certain to have a substantial effect on the price of a company's securities. If the disclosure of that information would be expected to alter the total mix of information that is publicly available about that company, then the information is considered material. Any questions about whether information is material should be directed to a member of compliance.

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Material information often relates to a company's financial results and operations, including, for example, dividend changes, earning results, changes in previously released earnings estimates, significant merger or acquisition proposals or agreements, major litigation, liquidation problems, and extraordinary management developments. Information about a company could be material because of its expected effect on a particular class of the company's securities, all of the company's securities, the securities of another company, or the securities of several companies. Material information does not have to relate to a company's business. For example, in Carpenter v. U.S., the Supreme Court considered as material certain information about the contents of a forthcoming newspaper column that was expected to affect the market price of a security. In that case, a reporter for The Wall Street Journal was found criminally liable for disclosing to others the dates that reports on various companies would appear in the Journal and whether those reports would be favorable or not.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.&nbsp;&nbsp;&nbsp;&nbsp;What is Non-Public Information?** 

For issues concerning insider trading to arise, information must not only be material, it must also be "non-public". Non-public information is information that has not been made available to investors generally. Information received in circumstances indicating that it is not yet in general circulation or where the recipient knows or should know that the information could only have been provided by an "insider" is also deemed non-public information. For non-public information to become public information, it must be disseminated through recognized channels of distribution designed to broadly reach the securities marketplace.

Facts verifying that the information is public (and therefore has become generally available) may include, for example, and without limitation, disclosure in:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• National business and financial wire service, such as Dow Jones or Reuters;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• National news service or newspaper, such as AP or The Wall Street Journal; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Publicly disseminated disclosure document, such as a proxy statement or prospectus.

The circulation of rumors or "talk on the street", even if accurate, widespread and reported in the media, does not constitute the requisite public disclosure. In addition, the information must not only be publicly disclosed, there must also be adequate time for the market to digest the information. Material non-public information is not made public by selective dissemination. Material information improperly disclosed only to institutional investors or to a fund analyst or a favored group of analysts retains its status as "non-public" information that must not be disclosed or otherwise misused.

Partial disclosure does not constitute public dissemination. So long as any material component of the "inside" information has yet to be publicly disclosed, the information is deemed non-public and may not be misused.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.&nbsp;&nbsp;&nbsp;&nbsp;Identifying Inside Information** 

Before executing any Personal Trades or trades for client accounts, Access Persons must determine whether they have access to MNPI. If you believe that you might have access to MNPI, you should take the following steps:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Report the information and proposed trade immediately to a CCO or a member of compliance;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Do not purchase or sell the securities as Personal Trades or for clients without written clearance to do so from a CCO or a member of compliance; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Do not communicate the inside information other than to compliance and, if necessary, your direct manager.

A member of the Compliance Department will determine whether the information is material and nonpublic.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F.&nbsp;&nbsp;&nbsp;&nbsp;Contact with Public Companies** 

The Affiliated Advisers contact with public companies may help form the basis of investment decisions. Legal issues may arise if, in the course of these contacts, you become aware of MNPI. This could happen, for example, if a company's chief financial officer were to prematurely disclose quarterly results, or an investor relations representative selectively discloses adverse news to a handful of investors.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G.&nbsp;&nbsp;&nbsp;&nbsp;Tender Offers** 

Tender offers represent a particular concern in the law of insider trading for two reasons. First, tender offer activity often produces extraordinary gyrations in the price of the target company's securities. Trading during this time is more likely to attract regulatory attention (and produces a disproportionate percentage of insider trading cases). Second, the SEC forbids trading and "tipping" while in possession of MNPI regarding the receipt of a tender offer, the tender offeror, the target company or anyone acting on behalf of either of these parties. You should exercise caution any time you become aware of non-public information relating to a tender offer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**H.&nbsp;&nbsp;&nbsp;&nbsp;Protecting Sensitive Information** 

You are responsible for safeguarding all confidential information relating to investment research, fund and client holdings, including analyst research reports, investment meeting discussions or notes, and current fund or client transaction information, regardless whether such information is deemed MNPI. Other types of information (for example, marketing plans, employment issues and shareholder identities) may also be confidential and should not be shared with individuals outside the company unless approved by a CCO or an executive officer.

You are expressly prohibited from knowingly spreading any false rumor concerning any company, or any purported market development, that is designed to impact trading in or the price of that company's or any other company's securities, and from engaging in any other type of activity that constitutes illegal market manipulation.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. &nbsp;&nbsp;&nbsp;&nbsp;Trading in Securities Listed on Exchanges in Other Countries** 

Trading in securities listed on exchanges in other countries is governed by the laws of that country. When trading in such securities, you must ensure compliance with applicable law, which in all relevant cases prohibits trading on the basis of MNPI or price-sensitive information, as those terms are defined in the relevant jurisdiction.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**J.&nbsp;&nbsp;&nbsp;&nbsp;Public Company Confidential Records** 

VCH's and Affiliated Adviser records must always be treated as confidential and must not be disclosed or used for any purpose at any time other than for the normal course of business. Information learned about other entities in a special relationship with VCH, such as acquisition, joint venture and partnership negotiations, is confidential and must not be disclosed without proper authorization.

At all times, you are prohibited from making any recommendation or expressing any opinion as to trading in Victory Capital Stock

See VCH's *Corporate Communications Policy* and *Insider Trading Policy* for more information.

**5.&nbsp;&nbsp;&nbsp;&nbsp;CONFLICTS OF INTEREST** 

A "conflict of interest" exists when your interests may be contrary to our clients' and shareholders' interests. A conflict may arise if you take action or have business, financial or other interests that may make it difficult to perform your work objectively and effectively.

Conflicts of interest may arise, for example, if you or your Immediate Family member receives improper personal benefits (for example, personal loans, services, or payment for services) as a result of your position at an Affiliated Adviser or you gain personal enrichment or benefits through access to confidential information. Conflicts may also arise if you or an Immediate Family member holds a financial interest in a company that does business with an Affiliated Adviser or has outside business interests that may result in divided loyalties or compromised independent judgment. Conflicts may also arise when making securities investments for Proprietary Products or Personal Accounts or when determining how to allocate trading opportunities.

Conflicts of interest can arise in many common situations, despite best efforts to avoid them. This Code does not attempt to identify all possible conflicts of interest. Literal compliance with each of the specific procedures will not shield you from liability for Personal Trading or other conduct that violates your fiduciary duties to clients. You are encouraged to seek clarification of, and discuss questions about, potential conflicts of interest. Any questions regarding a conflict of interest or potential conflict of interest should be directed to a manager, a CCO or a representative of compliance.

The following areas represent many common types of conflicts of interests and the procedures to be followed; however, the list is not intended to be all-inclusive. A summary is provided for each case, but further details can be found in the related policies and procedures for your specific Affiliated Adviser. To the extent there is a conflict between an Affiliated Adviser's related policies and procedures and the requirements of the Code, the Code shall prevail. For questions related to conflicts of interest, please contact a member of your Affiliated Adviser's compliance department.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.&nbsp;&nbsp;&nbsp;&nbsp;Gifts and Entertainment**

<u>Gifts</u> 

Giving or receiving gifts or other items of value to or from persons doing business or seeking to do business with an Affiliated Adviser could call into question the independence of its judgment as a fiduciary of its clients. Accordingly, such conduct is only permitted in accordance with the limitations stated herein.

Affiliated Adviser policies on gifts and entertainment are derived from industry practices. You should be aware that there are various laws and regulations that prohibit you from giving anything of value to employees of various financial institutions in connection with attempts to obtain any business transaction with the institution, which is viewed as a form of bribery. If there is any question about the appropriateness of any particular gift, you should consult a member of compliance.

Under no circumstances may a gift be received as any form of compensation for services provided by an Affiliated Adviser or an Access Person. Gifts of nominal value may be given to or accepted from present or prospective customers, brokers, service providers, suppliers or vendors with whom there is an actual or potential business relationship. You are required to pre-clear all gifts given and received in MCO, and promptly report all gifts given in the Affiliated Adviser's expense reporting system. Any gifts received must promptly be disclosed in MCO. Gifts from an individual or entity may not exceed $100 in aggregate value in any calendar year unless pre-approval is obtained from your direct manager and compliance.

Gifts of up to $100 per person per year may be provided to present or prospective customers, brokers, service providers, suppliers or vendors with whom there is an actual or potential business relationship.

Additional policies concerning gifts may be applicable depending on the type of customer (e.g., ERISA, foreign, union, government officials, or Covered Government Officials).

Please refer to the *Gifts and Entertainment Policy* (F-3) for more information.

<u>Entertainment</u> 

You may sponsor and participate in Reasonable and Customary Business Entertainment. Any Business Entertainment that is not Reasonable and Customary must be pre-approved by a CCO and your manager. You must accompany the persons being entertained for an entertainment activity to qualify as permissible Business Entertainment. All Business Entertainment expenses must be reported promptly in the applicable expense reporting system, listing each attendee at the entertainment event. The receipt of Business Entertainment must be disclosed promptly after each occurrence in MCO, with the exception of infrequent business meals that cost no more than $25 per person. If the client, broker, service provider, vendor or supplier is not present, the entertainment is considered a gift. Items that are normally associated with entertainment that are given or received during a virtual event can be considered entertainment as long as the appropriate parties are in attendance at the virtual event.

Additional policies concerning gifts and entertainment may be applicable depending on the type of customer (e.g., ERISA, foreign, union, government officials, or Covered Government Officials).

Please refer to the *Gifts and Entertainment Policy* (F-3) for more information.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.&nbsp;&nbsp;&nbsp;&nbsp;Political Contributions** 

SEC regulations limit political contributions to Covered Government Officials by employees of investment advisory firms and certain affiliated companies. The SEC's "Pay-to-Play" Rule 206(4)-5 (the "Rule") prohibits advisers from receiving any compensation for providing investment advice to a government entity within two years after a contribution has been made by the adviser or one of its covered associates. The two-year time out is triggered by a political contribution to an official of a government entity. The date of the contribution starts the time out.

The Rule permits contributions of up to $350 per person for any election to an elected official or candidate for whom the individual is entitled to vote, and up to $150 per person for any election to an elected official or candidate for whom the individual is not entitled to vote. Many U.S. cities, states and other government entities have also adopted regulations restricting political contributions by associates of investment management firms seeking to provide services to a governmental entity. While contributions to candidates in federal elections would generally not raise any issues under state or local laws, contributions to state and local officials are generally not approved. Prior to the commencement of employment, you must disclose all political contributions in the past 2 years to Human Resources. During employment, you must receive approval from compliance through MCO before making personal political contributions at all levels. Political contributions which require pre-approval include, but are not limited to, the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Covered Government Officials;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Federal candidate campaigns and affiliated committees;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Political Action Committees (PACs) and Super PACs; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-profit organizations that may engage in political activities, such as 501(c)(4), 501(c)(6) organizations, and 527 organizations

Note: U.S. national political party donations (e.g. Democratic or Republican) do not require preclearance, provided the donation is not earmarked for a specific candidate.

Contributions include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Monetary contributions, gifts or loans;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• "In kind" contributions (e.g. donations of goods or services or underwriting or hosting fundraisers);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Contributions to help pay a debt incurred in connection with an election (including transition or inaugural expenses, purchasing tickets to inaugural events);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Contributions to joint fund-raising committees; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Contributions made by a PAC that is controlled by an Access Person.

See the *Political Contributions Policy* (F-2) for more information.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.&nbsp;&nbsp;&nbsp;&nbsp;Outside Business Activities** 

Prior to commencement of employment with VCM, all Outside Business Activities ("OBAs") must be disclosed to Human Resources. During employment and prior to commencement of any new OBA, you must fill out and submit an OBA request form in MCO. You are responsible for notifying compliance of any material OBA changes and must review, update and certify quarterly to your OBA activities.

<u>Holding Political Office/Appointments</u> 

You must avoid any political appointment that may conflict with the performance of your duties on behalf of the Affiliated Advisers and their clients. Prior written approval must be obtained from a CCO before holding political office and, if approved, must be confirmed annually through the compliance certification process. You must expressly remove yourself from any discussions and decisions regarding products or services offered by the Affiliated Advisers.

<u>Outside Employment or Business Activities</u> 

You may pursue other interests on your own time as long as the activity doesn't conflict, interfere, or reflect negatively on the Affiliated Advisers or their clients. However, full-time employees should consider their position to be their primary employment.

All outside business activities must be reported to and pre-approved by both your manager and a CCO (or CCO designee). Outside employment or business activities may be considered any activity conducted by you for another organization or business purpose that is outside the scope of your job function with the Affiliated Advisers. This includes, but is not limited to, being an employee, independent contractor, consultant, sole proprietor, officer, director or partner of another organization, or being compensated by, or having the reasonable expectation of compensation from, any other person or organization as a result of any business activity outside the scope of the relationship with the Affiliated Advisers. Certain activities are not considered reportable OBAs, including any non-investment related activity that is exclusively charitable, civic, religious or fraternal, and is recognized as tax exempt.

Passive investments requirements are governed by the Limited Offerings and Private Placement sections of this Code. If you are unsure if a specific activity is an OBA or passive investment, you should consults with a member of compliance.

Absent prior approval of a CCO and the Chief Executive Officer, you or your Immediate Family member may not serve on the board of directors of any publicly traded company or investment company. You or your Immediate Family member's service on a for-profit private company's board of directors must also be pre-approved by your direct manager and a CCO or CLO, and reported on the your annual Code certification.

All outside employment or business activities must be reported to and pre-approved by both your direct manager and a CCO and reported on your quarterly certification. You are prohibited from the commencement of any outside employment or business activities until a CCO's approval within MCO has occurred.

In addition to these outside employment or business activity procedures, if you are a registered representatives of VCS, you must also adhere to related requirements as set forth in VCS's Written Supervisory Procedures Manual.

See the *Outside Business Activity* Policy (F-4) for more information.

<u>Bequests</u> 

A bequest is the act of leaving or giving something of value in a will. The acceptance of a bequest from a client, vendor or business partner may raise questions about the propriety of that relationship. Any potential or actual bequest in excess of $100 made to you by a client, vendor, or business partner under a will or trust agreement must be reported to compliance, unless the grantor is a member of your immediate family. Such bequests shall be subject to the approval of your direct manage and a CCO.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.&nbsp;&nbsp;&nbsp;&nbsp;Other Prohibitions on Conduct** 

In addition to the specific prohibitions detailed elsewhere in the Code, you are subject to a general requirement not to engage or participate in any act or practice that would defraud Affiliated Adviser clients. This general prohibition includes, among other things:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Making any untrue statement of a material fact or employing any device, scheme or artifice to defraud a client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Omitting to state a material fact, or failing to provide any information necessary to properly clarify any statements made, in light of the circumstances, thereby creating a materially misleading impression;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Misuse of client confidential information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Making investment decisions, changing internal research ratings and trading decisions other than exclusively for the benefit and in the best interest of our clients;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Using information about investment or trading decisions or changes in research ratings (whether considered, proposed or made) to benefit or avoid economic injury to an Access Person or anyone other than our clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Taking, delaying or failing to take any action with respect to any research recommendation, report or rating or any investment or trading decision for a client in order to avoid economic injury to an Access Person or anyone other than a client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Purchasing or selling a security on the basis of knowledge of a possible trade by or for a client with the intent of personally profiting from personal holdings in the same or related securities ("front-running" or "scalping");

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Revealing to any other person (except in the normal course of your duties on behalf of a client) any information regarding securities transactions by any client or the consideration by any client of any such securities transactions; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Engaging in any act, practice or course of business that operates or would operate as a fraud or deceit on a client or engaging in any manipulative practice with respect to any client.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E. Review of Employee Communications** 

All correspondence related to the Affiliated Advisers' business and any client correspondence is subject to review by compliance. The Affiliated Advisers are required to maintain original records of employee correspondence that is communicated on approved devices (such as through email). In addition, the Affiliated Advisers are required to monitor employee communications and compliance with conflicts of interest and insider trading policies and procedures. Consequently, all employee communications, including emails and other forms of electronic communication are archived and subject to review for compliance purposes. You are advised that you should have no expectation of privacy regarding personal communications that are sent or received on company-provided or connected electronic devices or communication platforms, such as instant messages or emails.

Additionally, you are prohibited from sending client communications via any personal email account, instant messaging, text or other method that is not captured in our archiving system. You may only use an Affiliated Adviser's e-mail system, instant messaging system, Bloomberg and other explicitly approved methods for business-related communications. You are permitted to communicate on an Affiliated Adviser's e-mail system connected through personal mobile devices such as smartphones. See the appropriate technology policy for more information.

**6.&nbsp;&nbsp;&nbsp;&nbsp;STANDARDS OF BUSINESS CONDUCT** 

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You have a duty to place the interests of client accounts first and not take advantage of your position at the expense of clients

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You must not mislead or defraud any clients by any statement, act or manipulative practice.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• All personal securities transactions must be conducted in a manner to avoid any actual, potential, or appearance of, a conflict of interest, or any abuse of your position of trust and responsibility.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You may not induce or cause a client to take action, or not to take action, for personal benefit.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You may not share portfolio holdings information except as permitted by the applicable portfolio holdings disclosure policy. See the policy for more information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You must notify a CCO or CLO, as soon as reasonably practical, if you are arrested, arraigned, indicted or plead no contest or guilty to any criminal offense (other than minor traffic violations) or if named as a defendant in any investment-related civil proceeding or any administrative or disciplinary action.

**7.&nbsp;&nbsp;&nbsp;&nbsp;PERSONAL TRADING, CODE OF ETHICS REPORTING AND CERTIFICATIONS** 

Personal Trading is a privilege granted by the Affiliated Advisers that may be withdrawn at any time. All personal investment activities must be conducted in accordance with your fiduciary duty and the requirements of the Code at all times. The CCOs have complete discretion over all Personal Trading activity and have no obligation to explain any denial or restriction relating thereto. You may be required to disgorge any gains generated (or losses avoided) from Personal Trading violations. Access Persons must maintain adequate records of all Personal Trading transactions and be prepared to disclose those transactions to compliance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**A.&nbsp;&nbsp;&nbsp;&nbsp;Employee Investment Accounts** 

Subject to disclosure and pre-clearance requirements, Access Persons may open and maintain Managed Accounts and Personal Accounts with select brokers supported by MCO through direct electronic feeds ("Approved Brokers"). Any accounts held with a broker that is not on the Approved Broker List must be transferred to an Approved Broker within 90 days of the commencement of employment.

On a case-by-case basis, compliance may approve certain accounts held with brokers that are not on the Approved Brokers List. Compliance must still receive statements for each of these types of accounts, regardless of whether they are Managed or Personal Accounts.

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For a list of Approved Brokers see *Appendix 2 – Approved Brokers List.* For a summary of account disclosure requirements see *Appendix 3 – Investment Account Disclosure.* For a summary of preclearance requirements see *Appendix 4 – Preclearance and Reporting By Security Type.* 

<u>Managed Accounts</u> 

Access Persons may open and maintain Managed Accounts with Approved Brokers. With the exception of IPOs and Limited Offerings, the requirements listed below under Personal Trading Requirements and Restrictions do not apply to Managed Accounts. Participation in an IPO or a private placement in a Managed Account still requires prior approval of a CCO or his/her designee.

Managed Accounts require the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• They must be approved by compliance prior to trading or on the next quarterly certification, whichever is sooner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• At the end of each quarter, all employees must certify that all Managed Accounts have been disclosed and verify all transactions are correctly reflected in MCO;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The employee must certify and compliance must be able to independently verify that the account is truly discretionary; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Access Persons must certify quarterly that they had no direct or indirect influence or control over any transactions that occurred in their Managed Accounts.

Failure to adhere to these requirements could lead to disciplinary actions and penalties up to and including termination.

<u>Personal Accounts</u> 

Access Persons may open and maintain Personal Accounts at Victory Capital Services and with brokers on the Approved Brokers List (see Appendix 2). All requirements listed below under Personal Trading Requirements and Restrictions apply to Personal Accounts.

Personal Accounts require the following:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• They must be approved by compliance prior to trading or on the next quarterly certification, whichever is sooner;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• At the end of each quarter, all employees must certify that all Personal Accounts have been disclosed and verify all Personal Trades or transactions are correctly reflected in MCO.

Access Persons acknowledge and agree that the Affiliated Advisers may request and obtain information regarding Personal Accounts from broker-dealers. Affiliated Advisers may use personal information, including name, address and social security numbers, to identify and verify employee accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**B.&nbsp;&nbsp;&nbsp;&nbsp;Employee Investment Account Reporting** 

<u>Investment Account Disclosure</u> 

All Personal Accounts and Managed Accounts must be disclosed to and approved by compliance prior to trading or on the next quarterly certification, whichever is sooner. New Hires may not trade in their existing accounts until they have been disclosed and approved by compliance. By regulation, such disclosure must take place within 10 days of hire. Failure to comply may result in sanctions imposed by the VCM Compliance Committee and/or Board of Directors.

<u>Initial Holdings Report/Annual Holdings Report</u> 

No Personal Trading will be authorized before compliance has received a completed Initial Holdings Report as part of the new hire on-boarding process. Any exceptions must be approved by a CCO.

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The Initial Holdings Report must be submitted to compliance within ten (10) calendar days of becoming an Access Person. All Access Persons must submit a similar report annually to compliance. These reports must include the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The date when the individual became an Access Person (Initial Holdings Report only);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The name of each Personal Account in which any securities are or could be held in the Beneficial Interest of the Access Person, and the name of the broker-dealer or financial institution holding these accounts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Current holdings in private placements (or non-public offering), including private equity, hedge funds or partnerships; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Each Reportable Security or Reportable Fund in which the Access Person has a Beneficial Interest, including title, number of shares, and principal amount. Holdings information must be current as of 45 calendar days before the report is submitted.

<u>Quarterly Securities Transaction Report</u> 

At the end of each quarter, every Access Person must verify his or her Personal Trades or transactions in Personal Accounts through MCO by submitting a Securities Transaction Report

("STR") no later than 30 calendar days following the end of each calendar quarter (whether or not trades were made). The STR must include:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• A description of any transaction in a Reportable Security or Reportable Fund effected during the preceding quarter, such as the date, number of shares, principal amount of securities involved, nature of the transaction (i.e., a buy or a sell), price, and the name of the broker/dealer or financial institution that effected the transaction; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The name and number for any account established in the preceding quarter

Certain transactions are exempt from the quarterly reporting requirement. See *"Summary of Preclearance Requirements"* in *Appendix 4 – Preclearance and Reporting By Security Type* for more information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**C.&nbsp;&nbsp;&nbsp;&nbsp;Personal Trading Requirements and Restrictions** 

<u>Prohibited Securities and Transactions</u> 

Commodities, currencies, futures, options, and selling securities short are prohibited in Personal Accounts.

Investments in companies under common control of VCH are also prohibited in Personal Accounts.

<u>Pre-clearance Requirement</u> 

You must obtain compliance approval prior to executing a transaction that requires pre-clearance (see Appendix 4 – Preclearance and Reporting By Security Type). Approval may only be requested by submitting a Personal Trade Pre-Clearance Request ("PTR") in MCO. Compliance approval expires at the end of the trading day approval was provided (see exception granted to Covered Persons, as defined in VCH's Insider Trading Policy). In certain circumstances, an approved and executed Personal Trade may need to be broken or profits disgorged (e.g. a Blackout Period triggered by subsequent client trading).

*Cryptocurrencies* – Trading in cryptocurrencies must be pre-cleared using the appropriate section of the Trade Pre-Clearance form within MCO. Such trades must be executed either in an account at a firm that is on our approved broker list (see Appendix 2) or in an account that does not offer any security trading capability. Accounts established to trade cryptocurrencies that do not have security trading capabilities must be reported in MCO. Receiving pre-clearance approval does not relieve you of your fiduciary duty and the responsibility to follow the spirit of the Code.

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Compliance will review cryptocurrency trade requests for perceived or actual conflicts. As a general rule, compliance expects that cryptocurrencies traded on common crypto exchanges (e.g. Coinbase) will not pose a conflict and would be approved. Trades in cryptocurrencies will not be subject to the Short-Term Trading Period or count towards your Maximum Allowable Trades, however compliance may deny trades if it determines an actual or perceived conflict exists or an employee is trading too frequently. Decisions for approval and denial are the sole responsibility of compliance and are final.

You should be aware that the regulatory environment continues to evolve with respect to cryptocurrencies. In the future, you may be required to divest crypto holdings or hold them only at approved account providers if deemed necessary to meet regulatory requirements.

<u>Prohibition on Personal Trades Ahead of Client Pending Orders</u> 

You are prohibited from executing Personal Trades in securities where you are aware of any pending orders in such securities by any Franchise that, if executed, would trigger a Blackout Period, create a conflict, or disadvantage a client. Adherence to the above Pre-Clearance Requirement does not provide relief from this prohibition.

<u>Franchise Blackout Period</u> 

The Franchise Blackout Period is triggered by all client trades within an employee's specific Franchise. De Minimis Trades and ETFs listed in Appendix 5 are not subject to the blackout period. Employees may not make De Minimis Trades in the same security on consecutive trading days. The LCR Department does not provide exceptions to the Franchise Blackout Period beyond De Minimis Trades and ETFs.

<u>Standard Blackout Period</u> 

For all other employees (e.g. support staff) and the Victory Solutions Team the Standard Blackout Period is triggered by all client trades. Therefore, a Personal Trade by an employee during a Blackout Period in the same name as any client is generally prohibited. De Minimis Trades and ETFs listed in Appendix 5 are not subject to the Standard Blackout Period. Employees may not make De Minimis Trades in the same security on consecutive trading days. The appropriate CCO, or his/her designee, may determine that a nonvolitional client trade (e.g. cash flow trading) did not trigger a Blackout Period. In such cases, Compliance will confirm that there are no other potential conflicts before approving or reviewing a Personal Trade. Additionally, in certain situations (e.g. shared office spaces), the CCO, or his/her designee, may apply the Standard Blackout Period to Franchises.

<u>Private Equity Prohibitions</u> 

Employees who are part of a franchise that invests in private equity on behalf of clients are prohibited from investing in any publicly-listed portfolio companies held by such franchise. Publicly-listed companies that are not portfolio companies but are in similar sectors and industries as those that are held will be reviewed on a case-by-case basis for potential conflicts.

<u>Short-Term Holding Period</u> 

Personal Trading must be for investment purposes rather than for speculation. You may not purchase and sell or sell and purchase the same security within sixty (60) calendar days, calculated on a LIFO basis. This means each purchase will require you to hold your entire position in that security for 60 days. Similarly, this means each sale will require you not to purchase that name for 60 days. Excess profits (or losses avoided) as a result of violating this restriction may be subject to disgorgement. You should carefully consider whether you have the conviction to hold an entire position or refrain from adding to a position for at least 60 days before engaging in buy or sell transactions. See exceptions related to trading in Victory Capital stock. The Short-Term Holding Period only applies to transactions that require pre-clearance.

The appropriate CCO, in his/her sole discretion, may approve exceptions to this requirement.

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<u>Maximum Allowable Trades</u> 

You are limited to 15 Personal Trades in individual securities per calendar quarter across your Personal Accounts. A trade in the same security in multiple accounts on the same day will count as one trade. Transactions listed in the "Reportable ONLY (Preclearance NOT Required)" section of Appendix 4 do not count toward the 15 allowable trades. A CCO, in his/her sole discretion, may approve exceptions to this requirement.

<u>Prohibition on Small Market Capitalization Securities</u> 

Personal Trade purchases in smaller market capitalization stocks of $3 billion market capitalization or less are prohibited. Due to potential conflicts associated with such names, Victory reserves this universe for client use. New hires who hold names in such securities or existing employees who hold names that have since gone below $3 billion should speak to the LCR Department prior to submitting a request to sell.

<u>IPO Rule</u> 

You may <u>not</u> directly or indirectly acquire a Beneficial Interest in any securities offered in an IPO or in an Initial Coin Offering (ICO), in a Personal Account or Managed Account, without prior approval of a CCO or his/her designee.

<u>Limited Offerings (Private Placements)</u> 

You may <u>not</u> acquire a Beneficial Interest in a private placement without the prior approval of a CCO or his/her designee. Prior approval is required whether investing directly or through a Personal Account or Managed Account. Private placements, such as investment in a private company, investments in a hedge fund or other private investment fund are reportable through the preclearance process. Subsequent capital contributions and full or partial redemptions must be precleared through MCO.

<u>Market Timing Mutual Fund Transactions</u> 

You shall not participate in any activity that may be construed as market timing of mutual funds. Specifically, you shall <u>not</u> engage in excessive trading or market timing activities as described in each prospectus of a Proprietary Product or Reportable Fund.

<u>Trading in Victory Capital Stock</u> 

Victory Capital Stock (VCTR) is a Reportable Security under the Code and any transaction in VCTR in a Personal Account must be precleared. You may be eligible for certain benefits related to VCTR, such as participation in the ESPP and grants of stock options or restricted stock. Certain transactions related to these benefits will require pre-clearance. For a summary of pre-clearance requirements for VCTR see *Pre-Clearance Requirements for Victory Capital Stock* under *Appendix 4 – Preclearance and Reporting By Security Type*. If you are uncertain whether a transaction requires pre-clearance, you should consult with compliance prior to trading.

VCTR transactions related to the above employee benefits will not trigger the Short-Term Holding Period in a Personal Account. Likewise, VCTR transactions in a Personal Account will not affect an employee's ability to exercise such employee benefits.

Covered Persons, as defined in VCH's *Insider Trading Policy,* will have 3 business days upon receipt of approval to effect transactions in VCTR.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**D.&nbsp;&nbsp;&nbsp;&nbsp;Representations and Warranties** 

Each time you submit a PTR, you shall be deemed to make the following representations and warranties:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You are not in possession of any MNPI for the requested security;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You are not aware of any client trading in the same security during any Blackout Period to which you are subject

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• You have not traded the same position in the opposite direction, in the past 60 days (Mandatory Short-Term Holding Period);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**E.&nbsp;&nbsp;&nbsp;&nbsp;Quarterly and Annual Certifications of Compliance** 

You are required to certify quarterly that you have disclosed all reportable:

&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;1.Gifts and entertainment;

&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;2.Outside Business Activities;

&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;3.Political activity and contributions;

&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;4.All Personal Trading Accounts, including Managed Accounts; and

&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;5.Personal Trades.

You are required to certify annually to the following:

&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;1.You have read, understand and complied with this Code and other related policies;

&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;2.You have read, understand and complied with Victory Capital's Corporate Information Protection and Technology Use Policy (A-8);

&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;3.You have provided and verified all reportable holdings data; and

&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;4.You have answered all additional questions and disclosures within the Annual Code of Ethics Certification in an accurate and truthful manner.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**F.&nbsp;&nbsp;&nbsp;&nbsp;Review Procedures** 

Compliance will maintain review procedures consistent with this Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**G.&nbsp;&nbsp;&nbsp;&nbsp;Recordkeeping** 

All Code of Ethics records will be maintained pursuant to the provisions of Rule 204A-1 under the Advisers Act and Rule 17j-1 under the Investment Company Act.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**H.&nbsp;&nbsp;&nbsp;&nbsp;Whistleblower Provisions** 

If you believe that there has been a violation of this Code, any federal law, or regulation of any governmental agency or entity, you must promptly notify VCM and WestEnd via: 1) a Chief Legal Officer, 2) a Chief Compliance Officer, or 3) the anonymous VCM Hotline at 800-854-9055.

Nothing in this Code shall prohibit you from: 1) making any disclosure of relevant and necessary information to any law enforcement agency, regulatory authority, or self-regulatory organization, or as required by law; 2) participating, cooperating, or testifying in any action, investigation, or proceeding with any law enforcement agency, regulatory authority, or self-regulatory organization; or 3) accepting any U.S. Securities and Exchange Commission awards.

You are protected from retaliation for reporting violations of this Code. Retaliation or the threat of retaliation against you for reporting a violation constitutes a further violation of this Code and may lead to immediate suspension and further sanctions.

VCM is also responsible for communicating the Victory Funds whistleblower procedures to applicable employees. The Victory Funds have implemented procedures for receiving anonymous reports of suspected or actual violations of the Victory Funds' policies and questionable accounting, internal accounting controls, or auditing matters.

Call 866-844-3863 to initiate a report regarding Victory Portfolios, Victory Portfolios II, or the Victory Variable Insurance Funds trusts.

Call 877-711-3336 to initiate a report regarding Victory Portfolios III trust.

Call 866-992-3741 to initiate a reporting regarding Victory Portfolios IV, Victory Variable Insurance Funds II, or Pioneer Closed-End Funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**I. &nbsp;&nbsp;&nbsp;&nbsp;Confidentiality** 

All information obtained from any employee shall be kept in strict confidence, except when requested by the SEC or any other regulatory or self-regulatory organization, and may otherwise be disclosed to the extent required by law or regulation. Additionally, certain information may be provided to a broker-dealer, service provider or vendor, such as employee name, social security number and home address, in order to ascertain Personal Trading activity that is required to be disclosed by an Access Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**J.&nbsp;&nbsp;&nbsp;&nbsp;Reporting to the Board of Directors of Affiliated Funds** 

At least annually, the appropriate Affiliated Advisers will provide the Board of Directors of Affiliated Funds with information regarding: 1) any Material Violations under this Code and any sanctions imposed as a response to such Material Violation; and 2) certification that it has adopted procedures necessary to prevent Access Persons from violating this Code.

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**8.&nbsp;&nbsp;&nbsp;&nbsp;CODE OF ETHICS VIOLATION GUIDELINES** 

You are responsible for conducting your activities in accordance with this Code. Violations of the Code may result in applicable sanctions.

Sanctions may correlate to the severity of the violation and may take into consideration, among other things, such factors as the frequency and severity of any prior violations. A CCO may recommend escalation to the VCM Board of Directors and Compliance Committee. When necessary, the VCM Board of Directors may obtain input from the Compliance Committee and a CCO when determining whether such violation is a Material Violation.

The CCOs hold discretionary authority to revoke Personal Trading privileges for any length of time and also reserve the right to lift Personal Trading sanctions in response to market conditions. Additionally, a CCO or Compliance Committee may impose a monetary penalty for any violation. A CCO will report all warnings, violations, exceptions granted and sanctions to the Compliance Committee.

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| | |
|:---|:---|
| **Minor Violations**  | **Potential Actions**  |
| • Provided incorrect or incomplete account or trading information <br>• Engaging in a pattern of discouraged or excessive trading <br>• Trading without pre-clearance approval when trade would have normally been approved and additional violations did not occur <br>• Failure to submit a complete or timely initial or annual holdings or securities transactions report <br>• Failure to provide the Compliance Department a duplicate confirmation in a timely manner after request or notice by the Compliance Department <br>• Failure to pre-clear properly an OBA or political contribution that would have been approved <br>• Failure to complete a quarterly or annual certification by due date <br>• Failure to pre-clear an investment in a private placement that would have been approved  | • Compliance may question you and document response <br>• 1<sup>st</sup> violation within a 12-month period may result in a warning letter <br>• CCO and Compliance Committee may be notified of all warnings and citations given to employees <br>• You may be required to break a trade or disgorge profits from the trade <br>• Any additional actions a CCO or Compliance deem appropriate under the circumstances  |
| **Technical Violations**  | **Potential Actions**  |
| • Any pattern of a Minor Violation within a 12-month period may qualify as a Technical Violation <br>• Failure to report a Personal Account in which trades requiring pre-clearance have occurred<br>• Trading without pre-clearance approval when trade would <u>not</u> have been approved <br>• Trading without pre-clearance or supplied incorrect information, which may have resulted in additional violations <br>• Failure to pre-clear any activity that would have been denied by the Compliance Department <br>• Any willful violations of the Code, as determined by a CCO, to be more severe than a Minor Violation  | • Compliance may question you and document response <br>• Compliance may issue a warning letter <br>• Compliance Committee may be notified <br>• Human Resources may be notified <br>• You may be required to break a trade or disgorge profits from the trade – any such profits will be donated to charity <br>• Temporary ban from Personal Trading for no less than 30 calendar days <br>• A fine may be imposed, as determined by a CCO on a case-by-case basis <br>• Any other actions deemed appropriate by a CCO or compliance  |

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| | |
|:---|:---|
| **Repeat Technical Violations**  | **Potential Actions**  |
| • Any Technical Violation that is repeated at least two <br>&nbsp;&nbsp;&nbsp;&nbsp;(2) times during a 12-month period  | • A CCO may meet with your direct manager to discuss violation <br>• Human Resources may be notified <br>• You may be required to break a trade or disgorge profits from the trade – any such profits will be donated to charity <br>• Three (3) or more technical violations within a 12month period may receive a citation letter, monetary fine and loss of Personal Trading privileges for no less than 90 calendar days <br>• Any other actions deemed appropriate by a CCO or compliance  |
| **Material Violations / Fraudulent Actions**  | **Potential Actions**  |
| &nbsp;&nbsp;&nbsp;&nbsp;• Any Material Violation | &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Compliance Committee will review and recommend sanctions and penalties up to and including termination of employment<br>&nbsp;&nbsp;&nbsp;&nbsp;• The Board of Directors and, when applicable, clients may be notified<br>&nbsp;&nbsp;&nbsp;&nbsp;• Possible criminal sanctions imposed by regulatory authorities<br>&nbsp;&nbsp;&nbsp;&nbsp;• A fine of $10,000 may be imposed by the Board of Directors<br>Any other actions deemed appropriate by a CCO, Compliance Committee or the Board of Directors |

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The Code of Ethics Violation Guidelines provides examples of potential Code violations and the actions that Victory Capital might take if you violate the Code; it is not intended to serve as an exhaustive list of potential Code violations or actions relating thereto. All findings of Code violations and any actions relating thereto will be made on a case-by-case basis. The CCOs have discretion to interpret violations and impose various sanctions in response to such violations as deemed necessary.

**Reconsideration** 

If you wish to dispute a violation notice, you may submit a written explanation of the circumstances of the violation to a CCO. The CCOs (and the CLO if escalation is deemed necessary) will review submissions on a case-by-case basis. The CCOs and CLO are under no obligation to change any sanction that has been imposed.

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**Appendix 1 – Affiliated Funds, Proprietary Products & Reportable Funds** 

As described in this Code, certain restrictions apply to trading in an Affiliated Fund, a Proprietary Product and any fund sub-advised by an Affiliated Adviser. Please refer to the company's intranet site "Under the wing" for a complete list or follow one of the links below.

**Affiliated Funds** 

For the most up-to-date list of Affiliated Victory Funds, please visit <u>www.vcm.com.</u> 

**Proprietary Products** 

Proprietary Products, are funds or products in which Victory Capital or its employees have an aggregate of 25% or more Beneficial Interest. Employees are required to pre-clear trades in any Proprietary Products.

On a quarterly basis Victory's compliance and fund administration department will review fund ownership levels to determine if any funds meet the criteria to be deemed a Proprietary Product. A list of current Proprietary Products will be maintained on the Compliance page of Victory's intranet site.

**Sub-Advised Funds** 

VCM acts as sub-adviser to a number of unaffiliated registered investment companies (mutual funds).

Please refer to VCM's ADV filed with the SEC by searching for the firm name on <u>https://www.adviserinfo.sec.gov</u>. ADV Part 1 contains SECTION 5.G.(3), which lists "Advisers to Registered Investment Companies and Business Development Companies". The name of the fund complex can be obtained by searching for the SEC File Number (under More Options) using EDGAR: <u>https://www.sec.gov/edgar/searchedgar/companysearch.html</u>. A complete list is also available on the company's intranet site "Under the wing" under the compliance tab.

i

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**Appendix 2 – Approved Brokers List** 

In addition to accounts on Victory Capital's retail brokerage platform, you are allowed to open new or maintain existing personal or managed accounts at any of the external brokers listed below. However, you may NOT begin trading in a brokerage account (in-house or external) until it is reported in MCO and set up on our broker data feed. The approved external brokers have been divided into tiers based on how responsive they typically are to our requests to add new accounts to the broker data feed.

**<u>Tier 1 Approved Brokers</u>** 

These brokers provide enhanced broker data feed functionality and typically add new accounts to our broker data feed within 1 – 3 business days.

&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;1.Charles Schwab (acquired TD Ameritrade)

&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;2.Fidelity Investments

&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;3.Interactive Brokers

**<u>Tier 2 Approved Brokers</u>** 

These brokers may take longer than Tier 1 Approved Brokers, but they generally add new accounts to our broker data feed within 5 business days.

&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;1.Ameriprise Financial Services

&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;2.Edward Jones

&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;3.Merrill Lynch

&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;4.UBS

&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;5.Vanguard

**<u>Tier 3 Approved Brokers</u>** 

These brokers may require you to sign a form before they will add a new account to our broker data feed, and/or typically take longer to update the feed once all their requirements are met – your ability to trade in a new account at these firms may be significantly delayed.

&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;1.JP Morgan Chase

&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;2.Morgan Stanley (acquired E\*TRADE)

&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;3.Northern Trust

&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;4.Raymond James

&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;5.RBC

&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;6.Wells Fargo

**<u>Approved Non-Brokers</u>** 

The following types of accounts are typically not held through a traditional brokerage firm but are still allowed under the Code of Ethics – you may be required to manually report transactions effected in reportable securities within these types of accounts.

&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;1.Employer Sponsored Retirement Plans

&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;2.ESOP/ESPP

&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;3.Direct Registration Service (DRS – i.e. Computershare, American Stock Transfer Company, etc.)

ii

------

**Appendix 3 – Investment Account Disclosure** 

New Hires may not trade in their existing accounts until they have been disclosed and approved by compliance. By regulation, such disclosure must take place within 10 days of hire. All new Personal Accounts and Managed Accounts must be reported to compliance prior to trading or on the next quarterly certification, whichever is sooner. Failure to comply may result in sanctions imposed by the VCM Compliance Committee and/or Board of Directors.

The below chart summarizes certain account types and their disclosure requirements. If you have a beneficial interest in any account identified below, you must follow the disclosure requirements. If you are uncertain whether an account should be disclosed or if you have a beneficial interest in an account not listed below, you should consult with a CCO or a member of the Compliance team.

---

| | | |
|:---|:---|:---|
| **Account Type**  | **Initial Disclosure**  | **Periodic Verification**  |
| All Personal Accounts  | Yes  | Yes  |
| All Managed Accounts  | Yes  | Yes  |
| Affiliated Fund Direct Accounts  | Yes  | Yes  |
| 401(k) if able to hold Reportable Securities  | Yes  | Yes  |
| Security Lending Accounts  | Yes  | Yes  |
| Margin Accounts  | Yes  | Yes  |
| Investment Club Accounts  | Yes  | Yes  |
| Private Placements  | Yes  | No  |
| Unaffiliated Open-end Mutual Fund Direct Accounts  | No  | No  |
| Retirement accounts if unable to hold Reportable Securities  | No  | No  |
| 529 Plans  | No  | No  |
| Bank accounts if unable to hold Reportable Securities  | No  | No  |
| Donor Advised Fund (only pre-clear gift of stock to account)  | No  | No  |
| HSA Investments (if unable to hold Reportable Securities)  | No  | No  |
| Accounts that facilitate trading cryptocurrencies  | Yes  | Yes  |

---

**Also see the Account Reporting Job Aid for more details.**

iii

------

**Appendix 4 – Preclearance and Reporting By Security Type** 

Most transactions in Personal Accounts require you to submit a PTR through MCO. See *Section VI: Personal Trading Requirements and Restrictions* for more information.

**Summary of Pre-clearance and Reporting Requirements** 

The below chart summarizes the pre-clearance and reporting requirements of certain security types. Additional details can be found in the Pre-Clearance Job Aid. If you are uncertain whether a transaction requires pre-clearance, you should consult with a CCO or a member of the Compliance team. For Victory Capital Stock, please refer to the *Summary of Pre-Clearance Requirements for Victory Capital Stock* provided in this Appendix.

---

| |
|:---|
| **Prohibited in Personal Accounts**  |
| Commodity Futures  |
| Futures  |
| Options  |
| Currency Futures  |
| Selling Securities Short  |
| Single Stock ETFs (and similar instruments that provide exposure to a single stock) |
| Companies under common control with VCH  |
| **Pre-clear in Managed Accounts and Personal Accounts**  |
| Initial Public Offerings (IPO)  |
| Initial Coin Offerings (ICO)  |
| Private placements  |
| **Pre-clear in Personal Accounts**  |
| Equities  |
| Corporate, High-Yield, Convertible, International, and Municipal Bonds  |
| Exchange-traded funds (ETFs), including affiliated ETFs  |
| Exchange-traded notes (ETNs)  |
| Closed-end funds  |
| Mortgage-Backed Securities  |
| Agency Securities (e.g. Fannie Mae, Freddie Mac etc.)  |
| Trust preferred & traditional preferred securities  |
| Any pre-clearance securities that are gifted or donated by an Access Person (e.g. direct to charity or to donor advised fund)  |
| Unit investment trusts  |
| Victory Proprietary Products (currently there are none) |
| VCM 401(k) transactions greater than $100,000 in a Proprietary Product  |
| Cryptocurrencies (e.g. Bitcoin, Ethereum, etc.)  |
| **Reportable <u>ONLY</u> (pre-clearance NOT required)**  |
| Dividend Reinvestment Plans (DRIPs)  |
| Victory Mutual Funds, unless it's a Proprietary Product  |
| Variable insurance products only where an Affiliated Adviser serves as adviser or sub-adviser  |
| **Exempt Transactions (only the effect of these transactions will be captured as an update on the annual holdings certification)**  |
| Approved automatic or periodic investment plans  |
| Dividend reinvestment transactions  |
| Corporate action transactions (e.g., stock splits, rights offerings, mergers and acquisitions)  |
| Security lending transactions  |

---

iv

------

---

| |
|:---|
| **Exempt Securities not subject to the Code**  |
| Direct obligations of the U.S. government  |
| Bankers' acceptances, bank certificates of deposit and commercial paper  |
| Investment grade, short-term debt instruments, including repurchase agreements  |

---

---

| |
|:---|
| Money market funds  |
| Variable insurance products unless an Affiliated Adviser acts as adviser or sub-adviser  |
| Unaffiliated open-end mutual funds  |
| Investments in qualified tuition programs ("529 Plans"), including the USAA College Savings Plan  |
| Physical Commodities (i.e. precious metals)  |
| Foreign Currencies held in order to use as currency (not for investment/speculation purposes)  |

---

**Summary of Pre-Clearance Requirements for Victory Capital Stock (ticker "VCTR")** 

---

| | |
|:---|:---|
| **VCTR Transaction Description**  | **Pre-Clear**  |
| **Common Stock (Class A Shares)**  |  |
| Employee purchase or sale in any Personal Account (e.g. a brokerage account for the benefit of the employee or for the benefit of the employee's Immediate Family)  | Yes  |
| Employee purchase or sale in a Managed Account approved by Compliance.  | No  |
| **Employee Stock Purchase Plan (ESPP)**  |  |
| Purchases made pursuant to Employee Stock Purchase Plan  | No  |
| Sales of shares acquired through the Employee Stock Purchase Plan  | Yes  |
| **Options**  |  |
| Sale of shares in the open market acquired through the exercise of any options  | Yes  |
| Cash Exercise - Employee pays the entire cost of the exercise.  | No  |
| Withhold Shares - Victory Capital withholds shares equal to the cost of the exercise.  | No  |
| **Restricted Stock (Class B Shares)**  |  |
| Selling restricted stock in the open market  | Yes  |
| Cash - Cash payment to cover vested shares tax liability  | No  |
| Net - Surrender shares to Victory Capital to cover vested shares tax liability  | No  |
| **10b5-1 Trading Plan**  |  |
| Officers of VCH required to make filings under Section 16 of the Securities and Exchange Act of 1934, as amended, conducting trades in accordance with an approved 10b5-1 Trading Plan.  | No  |

---

 **&nbsp;&nbsp;&nbsp;&nbsp; &nbsp;&nbsp;&nbsp;&nbsp;**

v

------

**Appendix 5 – ETFs Eligible for De Minimis Transaction Exemption** 

Firm trades in the following ETFs will not trigger any Blackout Period due to their use as highly liquid cash management vehicles in various client accounts.

---

| | | |
|:---|:---|:---|
| **Name**  | **Symbol**  | **CUSIP**  |
| iShares 7-10 Year Treasury Bond ETF  | IEF  | 464287440  |
| iShares 20+ Year Treasury Bond ETF  | TLT  | 464287432  |
| iShares Core MSCI EAFE ETF  | IEFA  | 46432F842  |
| iShares Core MSCI Emerging Markets ETF  | IEMG  | 46434G103  |
| iShares Core S&P 500 ETF  | IVV  | 464287200  |
| iShares Core U.S. Aggregate Bond ETF  | AGG  | 464287226  |
| iShares FTSE China 25 Index  | FXI  | 464287184  |
| iShares iBoxx $ High Yield Corporate Bond  | HYG  | 464288513  |
| iShares iBoxx $ Investment Grade Corporate Bond ETF  | LQD  | 464287242  |
| iShares MSCI ACWI Index Fund  | ACWI  | 464288257  |
| iShares MSCI China Index Fund  | MCHI  | 46429B671  |
| iShares MSCI Emerging Index Fund ETF  | EEM  | 464287234  |
| iShares MSCI EAFE Index Fund ETF  | EFA  | 464287465  |
| iShares MSCI Japan Index Fund ETF  | EWJ  | 464286848  |
| iShares MSCI India  | INDA  | 46429B598  |
| iShares Russell 1000  | IWF | 464287614  |
| iShares Russell 2000 ETF  | IWM  | 464287655  |
| iShares Russell 2000 Value  | IWN  | 464287630  |
| iShares Russell Mid-Cap Value  | IWS  | 464287473  |
| SPDR Bloomberg Barclays High Yield Bond ETF  | JNK  | 78468R622  |
| SPDR S&P 500 ETF  | SPY  | 78462F103  |
| SPDR S&P MidCap 400 ETF  | MDY  | 78467Y107  |
| Vanguard FTSE All-World ex-US ETF  | VEU  | 922042775  |
| Vanguard FTSE Developed Markets ETF  | VEA  | 921943858  |
| Vanguard FTSE Emerging Markets ETF  | VWO  | 922042858  |
| Vanguard FTSE Europe ETF  | VGK  | 922042874  |
| Vanguard Mortgage-Backed Securities ETF  | VMBS  | 92206C771  |
| Vanguard Real Estate ETF  | VNQ  | 922908553  |
| Vanguard Short-Term Bond ETF  | BSV  | 921937827  |
| Vanguard Short-Term Corporate Bond ETF  | VCSH  | 92206C409  |
| Vanguard S&P 500 ETF  | VOO  | 922908363  |
| Vanguard Total Bond Market ETF  | BND  | 921937835  |
| Vanguard Total International Stock ETF  | VXUS  | 921909768  |
| Vanguard Total Stock Market ETF  | VTI  | 922908769  |

---

vi

------

**Supplement 1** 

**RS Investment Management (Singapore) Pte. Ltd. ("RSIMS") Code of Ethics Supplement ("Singapore Supplement")** 

The policies and procedures in this Singapore Supplement to the Code apply to Access Persons of RSIMS and are in addition to, and supplement, the policies and procedures detailed in the Code.

Matters set out in the relevant sections of this Singapore Supplement shall be read in conjunction, and as one, with the Code. To the extent there is any inconsistency between the Code and this Singapore Supplement, this Singapore Supplement shall prevail.

**Short-Selling of Securities** 

All Victory Capital employees, including employees of RSIMS, are prohibited from Short-Selling any security.

**Trading on Inside Information** 

In addition to the requirements set out in the Code, all employees of RSIMS and all members of their Immediate Family are required to comply with all applicable laws in Singapore in relation to any Securities Transactions. Such laws include but are not limited to Part XII (Market Conduct) of the Securities and

Futures Act (Chapter 289 of Singapore) ("SFA") which set out prohibitions against the following conduct:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• False trading and market rigging transactions;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Securities market manipulation and manipulation of prices of futures contracts and cornering;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• The making of false or misleading statements or the dissemination of information that is false or misleading;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Fraudulently inducing persons to deal in securities or trade in futures contracts;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Employment of fraudulent or deceptive devices, or manipulative and deceptive devices;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Bucketing; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Insider trading and tipping off.

**Reporting Requirements** 

In addition to the Personal Account and Personal Trading requirements and restrictions set out in the Code, each employee of RSIMS who acts as a representative of RSIMS in RSIMS' capacity as the holder of a capital markets services license issued pursuant to the SFA for fund management (each a "Relevant Access Person") is required to maintain a register of his or her interests in securities (as such term is defined in section 2(1) of the SFA, the relevant extract of which is set out in the Appendix) that are listed for quotation, or quoted, on a securities exchange or recognized market operator in the prescribed Form 15 to the Securities and Futures (Licensing and Conduct of Business) Regulations (Rg 10).

Within 7 days after the date he or she acquires the interest in the relevant securities, each Relevant Access Person shall be required to enter into his or her register:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Particulars of securities in which such Relevant Access Person has any interest; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Particulars of such interests.

Where there is any change in any interest in the securities of such Relevant Access Person, he or she shall enter particulars of the change (including the date of the change and the circumstances by reason of which the change has occurred), within 7 days after the date of the change.

All entries in the register must be kept in an easily accessible form for a period of not less than 5 years after the date on which such entry was first made. The register shall:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.If in physical form, be kept at RSIMS's principal place of business in Singapore; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.If in electronic form, be kept in such manner so as to ensure that full access to the register may be gained by the Monetary Authority of Singapore ("MAS") at RSIMS's principal place of business in Singapore.

RSIMS is required to maintain records of the place at which the Relevant Access Persons keep their respective registers and the places at which copies of those registers are kept in Singapore. As a separate matter, RSIMS is also required to maintain a Form 15 in relation to RSIMS' own interests in the relevant Securities.

vii

## Ex-99.(P)(31)

**CODE OF ETHICS**

**Westwood Holdings Group, Inc.** 

**Westwood Management Corp.** 

**Westwood Trust**

**Westwood Advisors, L.L.C.** 

**Broadmark Asset Management, LLC**

**Salient Advisors, LP**

**Salient Capital, LP**

**I.Introduction**

The purpose of this Code of Ethics is to promote honest and ethical conduct, focus the Board of Directors and management of Westwood Holdings Group, Inc. ("WHG") and its subsidiaries on areas of ethical risk, provide guidance to directors, officers and employees to help them recognize and deal with ethical issues, provide mechanisms to report unethical conduct and help to preserve the culture of honesty and accountability at the Companies (as defined below).

This Code of Ethics establishes rules of conduct for persons who are associated with the Companies. The Code governs their personal investment and other investment-related activities and is designed to prevent violations of the applicable federal securities laws and mitigate conflicts of interest.

The basic rule is very simple: Put the client's interests first. The rest of the rules elaborate this principle. This Code is intended to assist the Companies in fulfilling their obligations under the law. Article II sets forth to whom the Code applies, Article III deals with personal investment activities, Article IV deals with other sensitive business practices, and subsequent parts deal with reporting and administrative procedures.

The Code is very important to the Companies and their employees. Violations can not only cause the Companies embarrassment, loss of business, legal restrictions, fines and other punishments, but for employees can lead to demotion, suspension, termination, ejection from the securities business, and large fines.

Annually, each Covered Person will receive a copy of this Code and any amendments thereto and will provide the Chief Compliance Officer with a written acknowledgment of their receipt.

**II.Applicability**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.<u>The Code applies</u> <u>to</u> <u>each</u> <u>of</u> <u>the</u> <u>following:</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Companies named or described at the top of page one of the Code and all entities that are under common management with these Companies or otherwise agree to be subject to the Code ("Affiliates").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Any officer, employee-director, or employee of any Company or Affiliate, and, as may be determined by the Chief Compliance Officer on a case-by-case basis, any other non-employee, consultant, or long-term contract employee of any Company or Affiliate.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.In the case of any non-employee, consultant, or long-term contract employee, the Chief Compliance Officer shall notify such individual as to whether he or she is considered a Covered Person or a Limited Access Person (each as defined below).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.<u>Definitions</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Beneficial Ownership.</u> Ownership of a security where a Covered Person, directly or indirectly, through any contract, arrangement, understanding, relationship, or otherwise has or shares (1) Voting power which includes the power to vote, or to direct the voting of, such security; and/or, (2) Investment power which includes the power to dispose, or to direct the disposition of, such security.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Chief Compliance Officer.</u> The person designated as WHG's Chief Compliance Officer. Actions and approvals to be taken by the Chief Compliance Officer under this Code may be delegated by the Chief Compliance Officer to other members of the Legal and Compliance Department.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.<u>Clients.</u> Investment advisory accounts maintained with any of the Companies or Affiliates by any person, other than Covered Person Accounts.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.<u>Companies.</u> The companies named or described at the top of page one of this Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.<u>Compliance Monitoring System.</u> MyComplianceOffice (also known as MCO) or such other similar system or software as the Companies may use from time to time for their electronic compliance monitoring activities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.<u>Covered Persons.</u> The Companies and the persons described in item (A) above. Any reference to "Covered Person" shall include all "Limited Access Persons" except as otherwise specified in this Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.<u>Covered Person Account.</u> Includes all advisory, brokerage, trust or other securities futures, and/or commodities accounts or forms of direct Beneficial Ownership in which one or more Covered Persons and/or one or more members of a Covered Person's immediate family have a substantial proportionate economic interest excluding 529 Plans and any accounts with Westwood Trust for the benefit of the employee or their immediate family over which such individuals do not have investment discretion. Immediate family includes a Covered Person's spouse and minor children and any family member living in the same household as the Covered Person. A substantial proportionate economic interest will generally be 10% of the equity in the account in the case of a Covered Person and 25% of the equity in the account in the case of all Covered Persons in the aggregate whichever is first applicable. Investment partnerships and similar indirect means of ownership other than registered open-end investment companies are also treated as accounts.

The following accounts are not considered Covered Person Accounts:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a)Accounts in which one or more Covered Persons and/or their immediate family have a substantial proportionate interest which are maintained with persons who have no affiliation with the Companies and with respect to which no Covered Person has, in the judgment of the Chief Compliance Officer after reviewing the terms and circumstances, any direct or indirect influence or control over the investment or portfolio execution process are not Covered Person Accounts (a "Managed Account")

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b)Bona fide error accounts of the Companies and the Affiliates are not considered Covered Person Accounts

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c)Accounts of immediate family members of Limited Access Persons.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.<u>Limited Access Person.</u> A part -time employee, independent contractor or consultant, or intern who may engage in investment advisory, investment management, or sales/client service activities as approved by the Chief Compliance Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.<u>Executive Manager.</u> The Chief Executive Officer ("CEO"), the co-Directors of Equity Portfolios, the Director of Equity Research of WHG, the Director of Multi Asset Portfolios.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;10.<u>Fund Clients.</u> Private funds clients and clients of registered investment companies or series thereof.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;11.<u>Managed Index Solutions Accounts.</u> Accounts managed by Westwood's Chicago-based Managed Investment Solutions team which are designed to replicate or track a securities index.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;12.<u>Portfolio Managers.</u> Covered Persons who are principally responsible for investment decisions with respect to any Westwood Strategies.

------

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;13.<u>Security.</u> Any financial instruments treated as a security for investment purposes and any related instruments such as futures, forward or swap contracts entered with respect to one or more securities. However, the term Security does not include securities issued by the Government of the United States (e.g., Treasury bonds, Treasury notes, and Treasury bills), bankers' acceptances, bank certificates of deposit, and commercial paper.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;14.<u>Westwood Strategy.</u> Products managed and controlled by (a) Westwood Management Corp., other than the Custom Asset Allocation accounts and Market Index Solutions Accounts, (b) Westwood Advisors, L.L.C., (c) Westwood Trust, with respect to its proprietary model accounts only, (d) Salient Advisors, LP, or (e) Broadmark Asset Management, LLC. For the sake of additional clarity, a strategy that is managed by an unaffiliated sub-advisor or independent third party is not considered a Westwood Strategy unless the sub-advisor or third party is deemed to be a Limited Access Person.

**III.Personal Account Reporting**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.<u>Initial Holdings</u> <u>Report</u>

No later than 10 business days after beginning employment or otherwise becoming a Covered Person, each Covered Person must submit an Initial Holdings Report through the Compliance Monitoring System containing the following information for all accounts that can hold securities excluding 529 Plans:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The title, number of shares and principal amount of each Security in which the Covered Person had any direct or indirect Beneficial Ownership when the person became a Covered Person;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.The name of any broker, dealer or bank with whom the Covered Person maintained an account in which any Securities were held for the direct or indirect benefit of the Covered Person as of the date the person became a Covered Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.The date that the report is submitted.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.<u>Monitoring of Covered Accounts</u>

Covered Persons must direct brokerage and other firms with which they have Covered Person Accounts to furnish to the Chief Compliance Officer on a timely basis duplicate copies of confirmations of, and account statements concerning, all personal Securities transactions or to allow an electronic feed of such statements and confirmations to the Compliance Monitoring System.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.<u>Quarterly Transaction</u> <u>Reports</u>

Every Covered Person must submit a quarterly transaction affirmation through the Compliance Monitoring System, containing the information set forth in paragraph C.2. below with respect to transactions in any Security in which such Covered Person has or by reason of such transactions acquires, any direct or indirect Beneficial Ownership in the Security, subject to the exceptions listed below in paragraph E. The required Transaction Report information is provided in the Compliance Monitoring System quarterly transaction affirmation for all personal brokerage accounts that are directly linked in the system. For those accounts that are not directly linked in the Compliance Monitoring System, the Covered Person must certify that they have reported all brokerage accounts containing reportable securities in the system and that they have requested from the broker that Westwood receive duplicate statements and transaction confirmations for all non-linked accounts. If the necessary transaction and brokerage account information is not being provided to Westwood through either of the above methods, the Covered Person must create and upload a Transaction Report into the Compliance Monitoring System as part of their quarterly transaction affirmation.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.The Transaction Report must be submitted to the Chief Compliance Officer no later than 30 days after the end of the calendar quarter in which the transaction or account to which the report relates was effected or established, and the report must contain the date that the report is submitted.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.A Transaction Report must contain the following information:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.The date of the transaction, the title, and as applicable the exchange ticker symbol or CUSIP number, interest rate and maturity date, number of shares and the principal amount of each Security involved;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.The nature of the transaction (i.e., purchase, sale or any other type of acquisition or disposition);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.The price at which the transaction was effected;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.The name of the broker, dealer or bank with or through whom the transaction was effected; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.The date the Covered Person submits the report.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.This report must contain the following information with respect to accounts established:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.The name of the broker, dealer or bank with whom the account was established; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.The date the account was established.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.In addition to the quarterly transaction affirmation, employees with Managed Accounts will be required to certify in the Compliance Monitoring System on a quarterly basis that they have fully delegated investment responsibility for such accounts to a third party.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.<u>Electronic or duplicate brokerage statements in lieu of report</u><u>s</u>

A Covered Person will be deemed to have complied with the quarterly transaction report requirements of this Article III insofar as the Chief Compliance Officer receives in a timely fashion monthly or quarterly brokerage statements uploaded to the Compliance Monitoring System on which all transactions required to be reported hereunder are described or an electronic feed of such statements and confirmations through the Compliance Monitoring System.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.<u>Transaction Report Exception</u><u>s</u>

A Covered Person is not required to submit a report in the following instances:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.A Covered Person need not make a report with respect to any transactions over which such person does not have any direct or indirect influence or control; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.A Covered Person need not make a report with respect to any transactions effected pursuant to an automatic investment plan (this includes dividend reinvestment plans).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.<u>Ownership Admission</u>

Any report submitted to comply with the requirements of this Article III may contain a statement that the report shall not be construed as an admission by the person making such report that he or she has any direct or indirect Beneficial Ownership in the Security to which the report relates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.Annual Holdings Report

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Each Covered Person must certify on an annual basis that he or she has disclosed or reported all personal Securities transactions required to be disclosed or reported under the Code and that he or she is not subject to any regulatory disability described in the annual certification form.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.All Annual Holdings Reports will be submitted through the Compliance Monitoring System. The report will contain the following information (which information must be current as of a date no more than 30 days before the report is submitted):

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.The title and type of security, and as applicable the exchange ticker symbol or CUSIP number, number of shares and principal amount of each Security in which the Covered Person had any direct or indirect Beneficial Ownership;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.The name of any broker, dealer or bank with whom the Covered Person maintains an account in which any Securities are held for the direct or indirect benefit of the Covered Person; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.The date that the report is submitted.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.The following Covered Person Accounts are only required to be reported and monitored annually as part of the Annual Holdings Report and are not subject to the intra-year monitoring set forth above in paragraph B:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Managed Accounts - accounts in which one or more Covered Persons and/or their immediate family have a substantial proportionate interest which are maintained with persons/entities who have no affiliation with the Companies and with respect to which no Covered Person has, in the judgment of the Chief Compliance Officer after reviewing the terms and circumstances, any direct or indirect influence or control over the investment or portfolio execution process.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.401(k) accounts that can only hold mutual funds or substantially similar investment options and not individual securities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;**IV.Personal Trading Restrictions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.<u>Basic Restriction</u> <u>on</u> <u>Investing</u> <u>Activities</u>

If a Security is owned in any Westwood Strategy, excluding municipal securities, such Security or related Security (such as an option, warrant or convertible security) may not be purchased or sold for any Covered Person Account subject to the previously owned related Security exception set forth in paragraph (B) and permitted exceptions set forth in paragraph (H) below. If a Covered Person owns a Security that is subsequently purchased in any Westwood Strategy, the Covered Person may not sell such Security until it is sold out of all Westwood Strategies subject to the permitted exceptions set forth in paragraph (H) below. If a purchase or sale order is pending for any Westwood Strategy by any Company or Affiliate, any request to purchase or sell such Security or any related Security (such as an option, warrant or convertible security) for a Covered Person Account will be denied unless the request complies with the permitted exceptions set forth in paragraph (H) below. If a Security is under active consideration for purchase in any Westwood Strategy by any Company or Affiliate, any request to purchase or sell such Security or any related Security (such as an option, warrant or convertible security) for a Covered Person Account may be denied at the discretion of the Chief Compliance Officer and the Executive Manager.

For further restrictions on the purchase or sale of WHG securities, please refer to the Amended and Restated Insider Trading Policy.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.<u>Investments Owned</u> <u>Prior</u> <u>to</u> <u>Employment (Amnesty Period)</u> 

If a Security or a related Security that is owned in a Westwood Strategy is also owned by a Covered Person when such person becomes a new employee, such Covered Person will have two weeks from the date of their employment orientation (the "Amnesty Period") to decide whether they want to sell their position in the Security, and all sales must occur within the Amnesty Period. After Amnesty Period, all future transactions in such Security will be subject to paragraph (A). Covered Persons must obtain pre-clearance approval for any Security or related Security traded during the two-week window.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.<u>Initial</u> <u>Public</u> <u>Offerings</u>

No Security or related Security may be acquired in an initial public offering ("IPO") for any Covered Person Account, unless the IPO is granted as part of an employee benefit plan to a non-employee Covered Person (for example, an employee's spouse is awarded IPO shares from his or her employer).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.<u>Blackout</u> <u>Period</u>

No Security or related Security may be bought, sold or exercised for any Covered Person Account during the period commencing three (3) business days prior to and ending three (3) business days after the purchase or sale (or entry of an order for the purchase or sale) of that Security or any related Security pursuant to an investment strategy for the account of any Client unless the transaction falls under the exception set forth in paragraph III.(B) or complies with the permitted exceptions set forth in paragraph (H). A client transaction is considered to be pursuant to an investment strategy when it is effected as a result of a change to Westwood's investment strategy. A client transaction is generally not considered to be pursuant to an investment strategy if it is effective to trim or add to an existing position to bring the account into greater alignment with the strategy or as a result of contributions or withdrawals.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.<u>Short-Term Trading</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.No shares of WHG stock or any Security or related Security that is held within a Westwood Strategy may, within a 60-day period, be bought and sold or sold and bought at a profit for any Covered Person Account.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.For the purpose of the short-term trading restriction, the expiration of an option within 60 days of the initial purchase or sale is not considered a sale of a Security. If WHG stock or any Security or related Security that is held within a Westwood Strategy is, within a 60-day period, bought and sold or sold and bought for a profit in violation of this provision in any Covered Person Account, then any resulting profits must be disgorged. For purposes of disgorgement, profit recognition is based upon the difference between the most recent purchase and sale prices for the most recent transactions. Accordingly, profit recognition for disgorgement purposes may differ from the capital gains calculations for tax purposes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.The use of any disgorged profits will be at WHG's discretion, and the employee will be responsible for any tax and related costs.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;F.<u>Exempt Transactions</u> (No Preclearance Required<u>)</u>

The following transactions are exempt from the restrictions set forth in paragraphs (A) (securities in Westwood strategy), (B) (restrictions following 2-week amnesty) and (D) (blackout period) above and do not require pre-clearance under paragraph (H) below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Participation in an ongoing automatic investment plan including 401K plans or an issuer's dividend reinvestment or stock purchase plan;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Participation in any transaction over which no Covered Person had any direct or indirect influence or control, involuntary transactions (such as mergers, inheritances, gifts, etc.);

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.The donation of Company stock does not require pre-clearance approval so long as the director, officer or employee donating the stock complies with the Company's Insider Trading Policy and does not possess material nonpublic information about the Company at the time of donation; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Purchases and sales of shares of registered open-end investment companies other than shares of investment companies advised or sub-advised by the Companies ("Non-Affiliated Funds").

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;G.<u>Westwood Strategies Advised by Limited Access Persons</u>

In the case of a Limited Access Person, the requirements, and prohibitions of paragraphs (A) through (F) shall only apply to any Westwood Strategies which are advised by the Limited Access Person or about which the Limited Access Person has knowledge of pending or proposed trades. For the sake of additional clarity, any such Westwood Strategy advised by a Limited Access Person shall be considered to be a Westwood Strategy for purposes of this Code with respect to any other Covered Person (for example, employee transactions in securities owned in a Westwood Strategy advised by a Limited Access Person are subject to the de minimis exception set forth in Section (H)).

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;H.<u>Permitted Limited Exceptions (Preclearance Required)</u>

Purchases and sales of the following Securities for Covered Person Accounts are subject to the pre-clearance requirements of paragraph (H) above but exempt from the restrictions set forth in paragraphs (A) (securities in a Westwood strategy), (D) (blackout period) and (E) (short term trading) above if such purchases and sales comply with the pre-clearance requirements of paragraph (H) below:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.*De minimis* trades of any Security or related Security (such as an option, warrant or convertible security) that is owned in a Westwood Strategy, subject to the following parameters:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.The issuer of the security must have a common equity market capitalization greater than $5 billion USD;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.The transaction is limited to 100 shares or $10,000 USD (whichever value is greater);

&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;• Examples:

&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;• XYZ stock is in a Westwood strategy and has a market capitalization of greater than $5 billion at a stock price of $105. 100 shares of XYZ have a value of $10,500. This is greater than $10,000. Therefore, the permissible de minimis trade that could be approved is up to 100 shares resulting in a trade of $10,500.

&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;• ABC stock is in a Westwood strategy and has a market capitalization of greater than $5 billion at a stock price of $85. 100 shares of ABC is worth $8,500 and $10,000 would buy 117 shares of ABC. Therefore, the permissible de minimis trade that could be approved is up to 117 shares resulting in a trade of $9,945.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Covered Persons are limited to a maximum of 3 such de minimis trades per month; de minimis bond trades may be consolidated within a calendar month, with approval; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Subject to these parameters, a Covered Person may sell a Security that is owned in a Westwood Strategy or buy a Security that Westwood is selling out of a Strategy; however, a Covered Person cannot take a position contrary to the position taken in a Westwood Strategy (e.g., cannot short a Security or hold a long PUT position in a Security where Westwood holds long position in the Security).

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Shares of registered open-end investment companies and certain other pooled vehicles advised or sub-advised by the Companies ("Affiliated Funds"). For reference, a list of such funds which require pre-clearance is set forth in Exhibit A.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Exchange traded funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Closed-end funds.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The exercise of voluntary corporate actions is exempt if the pre-clearance procedures for the purchase of the security to which the actions relate were satisfied.

In addition to the exceptions set forth above, purchases and sales of Securities for Covered Person Accounts that are established for the sole purpose of product development are exempt from the restrictions set forth in paragraphs (A), (D), and (E) above and do not need to comply with the requirements of paragraph (H) below if such accounts are disclosed as Managed Accounts in the Compliance Monitoring System and are subject to regular review by the Risk Management team to ensure compliance with the investment strategy for which the product is being developed and to ensure the product development account is not being favored.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;I.<u>Pre-Clearance of Personal Securities Transactions</u>

Unless exempt from pre-clearance as set forth in this Code, no Security or related Security (such as an option, warrant or convertible security) may be bought, sold or exercised for a Covered Person Account (other than a Covered Person Account of a Limited Access Person as provided below) unless (i) the Covered Person obtains prior approval from an Executive Manager and the Chief Compliance Officer; (ii) the approved transaction is completed on the same day or within two (2) business days after approval is received; and (iii) the Chief Compliance Officer or an Executive Manager does not rescind such approval prior to execution of the transaction. (See paragraph (K) below for details of the Pre- Clearance Process.) Pre-clearance of personal securities transactions is typically executed through the Compliance Monitoring System.

The pre-clearance requirements set forth in the preceding paragraph (I) do not apply to the purchase, sale or exercise of a Security in a Covered Person Account of a Limited Access Person.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;J.<u>Westwood Private Funds and Other Private Placements</u>

The purchases or sales of Securities by Covered Persons that are not publicly traded (including shares or other participation in Westwood-affiliated or third party private funds) ("Private Securities Transactions") will be reviewed on a case-by-case basis by the Chief Compliance Officer. The Covered Person requesting approval of a Private Securities Transaction shall (1) provide full details of the proposed transaction (2) include the applicable private placement memorandum or similar document and (3) disclose whether the Covered Person might receive any compensation from the proposed Private Securities Transaction or from the fund or issuer of the securities. The Chief Compliance Officer may approve the Private Securities Transaction if the Chief Compliance Officer concludes that (1) the Covered Person's investment in the Security would not disadvantage a Client's investment in the Security or operate to usurp a Client's opportunity to make an investment in the Security, and (2) the proposed Private Securities Transaction would be otherwise consistent with the Covered Person's and any Company's regulatory requirements including supervisor approval.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;K.<u>Pre-Clearance Process</u>

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.No Security may be purchased or sold for any Covered Person Account (other than accounts of Limited Access Persons as provided below) unless the particular transaction has been approved as required by this Code in the Compliance Monitoring System or in writing by an Executive Manager and the Chief Compliance Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.For Covered Person Accounts covered by paragraph K.1. above, an electronic pre- clearance request must be submitted through the Compliance Monitoring System, and an emailed notification of pre-clearance must be received prior to the entry of an order. If an employee cannot enter an electronic pre-clearance request through the Compliance Monitoring System for any reason, a pre-clearance request can be made by completing and submitting a Trading Approval Form, attached as Exhibit B, to the Chief Compliance Officer for approval by the Chief Compliance Officer or Executive Manager prior to the entry of an order.

After reviewing the proposed trade and the level of potential investment interest on behalf of Clients in the Security in question, the Chief Compliance Officer or Executive Manager shall approve (or disapprove) a pre-clearance request on behalf of a Covered Person. Transactions described in paragraph (H) above will generally be approved unless it is believed for any reason that the Covered Person Account should not trade in such Security at such time. The Chief Compliance Officer may establish automated processes for approving certain types of transactions in lieu of manual pre-trade reviews. The Compliance staff generally shall seek to approve or deny trades submitted before 11 am central on the same business day and by the next business day for trades submitted after 11 am.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Once a Covered Person's pre-clearance request is approved, the transaction must be executed within two (2) full business days after receiving approval ("Approved Period"). For example, a trade approved Monday morning before or during market hours could be executed Monday, Tuesday or Wednesday. A trade approved Monday evening after market hours could be executed Tuesday or Wednesday.

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If the Covered Person's trading order request is not approved, or is not executed within the Approved Period, the clearance lapses, although such trading order request may be resubmitted after such lapse. An exception to this rule applies when pre-clearance is requested for a transaction in WHG stock during an open Trading Window, in which case the pre-clearance remains effective throughout the Trading Window and expires when either the requested number of shares has been executed or the Trading Window closes.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Trading pre-clearance approval for the Chief Compliance Officer must be obtained from the General Counsel or Associate General Counsel and an Executive Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.The Chief Compliance Officer shall review all pre-clearance requests, all initial, quarterly and annual disclosure certifications and the trading activities on behalf of all Westwood Strategies with a view to ensuring that all Covered Persons are complying with the spirit as well as the detailed requirements of this Code. The Chief Compliance Officer shall periodically review confirmations from brokers to assure that all transactions effected for Covered Person Accounts are effected in compliance with this Code.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.No Security may be purchased or sold for any Covered Person Account of a Limited Access Persons pursuant to an update of an investment strategy for which the Limited Access Persons provided investment advice or about which the Limited Access Person has knowledge prior to the implementation of the corresponding update in Client Accounts. For the sake of further clarity, a Limited Access Person may only enter into investment strategy update transactions in their Covered Person Accounts at the same time or after such updates are transacted in Client Accounts.

**V.Other Investment-Related Restrictions**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.<u>Material Nonpublic</u> <u>Information</u>

A Covered Person may come in contact with material nonpublic information about WHG or any other issuer in the ordinary course of business or based on a personal or professional affiliation with an issuer. In no case may a Covered Person conduct personal trades in the securities of an issuer while in possession of material nonpublic information about the issuer; and, at times, trading in the securities of any such issuer may be limited or restricted for all Covered Persons and/or for the firm as a whole even if only one Covered Person is aware of the information.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.<u>Wall</u> <u>Cross Securities.</u> In the ordinary course of business, a Covered Person may receive access to material nonpublic information about another issuer related to a "wall-crossed" or "pre-marketed" public offering deal. Upon receipt of such information, the Covered Person shall immediately inform the Compliance Department that he or she possesses such information and/or that a Westwood strategy may participate in the deal. The Compliance Department shall then add the security to a firm-wide Wall Cross restricted list in the trade order management system(s) and to the restricted lists in the Compliance Monitoring System to restrict all firm and personal trades involving any such security. The restricted lists in these systems will automatically block any trades until the Compliance Department removes the security from the restricted lists. Securities shall only be removed from the lists once the information has been made public.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.<u>Employee-Affiliated Securities.</u> A Covered Person may receive access to material nonpublic information about another issuer based on a personal or professional affiliation with the issuer (an "Employee-Affiliated Security"). For example, a Covered Person may serve on the board of directors of another issuer, or a Covered Person's spouse may be employed by an issuer and have access to material nonpublic information. The Compliance Department identifies any such affiliations based on the outside business activities and initial and ongoing holdings disclosures that all Covered Persons are required to make in the Compliance Monitoring System. When an Employee-Affiliated Security is identified, the Compliance Department shall place the security on a watch list in the trade order management system(s) and the Compliance Monitoring System. Firm-level and personal trade requests involving any such security will be automatically restricted and flagged for review by the Compliance Department, at which point the Chief Compliance Officer shall review the proposed trade and determine whether it is appropriate to lift the restriction for the trade under the circumstances. In making such determination, the Chief Compliance Officer shall consider (a) the nature of the affiliation with the issuer, (b) any limitations the issuer has placed on transactions in its securities, (c) the likelihood that the employee affiliated with the security is aware of material nonpublic information and/or could have shared it, (d) who is requesting the trade and whether the trade is for a Covered Person Account or a Client account, (e) the size, timing, and direction of the trade, (f) past practice, and (g) such other factors as may be relevant under the circumstances. The Chief Compliance Officer shall document the reasons for the determination. The security shall remain on the watch list until the affiliation has ended, at which point the Chief Compliance Officer or other senior member of the Compliance Department will authorize the removal of the restrictions on the security.

**VI.Conflicts of Interest**

Covered Persons are prohibited from engaging in any activity, practice, or act which conflicts with, or appears to conflict with, the interests of the Companies, its customers, or vendors.

Covered Persons are required to fully disclose any potential conflict of interest to the Compliance Department via the Compliance Monitoring System.

A conflict of interest exists when you, knowingly or unknowingly, engage in any activity that may compromise you, another employee, or the Company in its relationship with a customer, vendor, or competitor.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.<u>Gifts & Entertainment.</u> 

Potential conflicts of interest with a customer, vendor, or competitor may include soliciting business for personal gain, accepting gifts other than those of nominal value (not more than $100), or requesting favors, discounts, or services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a.Gifts Received: No Covered Person shall accept any gift or other item of more than $100 in value from any Client, competitor, or any person or entity that does business with or on behalf of any Client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b.Entertainment Received: Covered Persons shall report accepted offers of entertainment (dinners, sports/concert events, etc.) from any person or entity that does business with or on behalf of any Client;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c.Gifts Given: No Covered Person shall give gifts or other items of more than $100 in value to any Client, competitor, vendor or any person or entity that does business with or on behalf of any Client when acting in their capacity as representatives of the Companies, except with the approval of the President, Chief Executive Officer or Chief Compliance Officer; Covered Persons shall report all gifts or other items of value given to any Client, competitor, vendor or any person or entity that does business with or on behalf of any Client in all instances where such Covered Persons are acting in their capacity as representatives of the Companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d.Entertainment Given: Covered Persons shall report all offers of entertainment accepted by any Client, competitor, vendor or any person or entity that does business with or on behalf

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of any Client in all instances where such Covered Persons are acting in their capacity as representatives of the Companies;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e.Reporting of gifts and entertainment given or received shall be made through the Compliance Monitoring System or through our expense management system in the case of reimbursable gifts that are given, which must include detail of the gift or entertainment, recipients or attendees and value of the gift or entertainment; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f.Westwood's Compliance Department (in conjunction with all employees servicing Clients) shall track all gifts and entertainment, if any, offered to and accepted by Taft-Hartley Clients.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;B.<u>Outside Business Activities</u>.

Potential conflicts of interest may arise in connection with a Covered Person's activities outside the scope of their employment with the Company. All Covered Persons are required to disclose their outside business activities upon hire and are required to obtain pre-clearance approval for any new outside business activities engaged in after hire. No Covered Person shall participate in any outside business activity without prior written authorization from his or her supervisor and the Chief Compliance Officer based upon a determination that the activity would not be inconsistent with the interests of the Company or Clients or in violation of this Code or the Code of Business Conduct. Generally, outside business activities requiring disclosure and/or pre-clearance approval fall under the following categories:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Outside Activities: Activities that must be reported and/or pre-cleared include (i) any outside activity involving work for another financial services firm or (ii) any recurring outside activity, whether for compensation or not, that regularly obligates the Covered Person to consistently take time off work.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Service as a Director or Trustee: No Covered Person shall serve (i) as a director on the board of a publicly traded company, or any company with which the Companies do or may do business, or any company in which any Westwood Strategy has an interest, or on the board of a professional organization, (ii) as a trustee at a charitable or other non-profit organization with which the Companies do or may do business, or (iii) in any other position that may involve a level of influence or control over the financial (C) dealings or decisions of any such organization, without prior written authorization from the Chief Compliance Officer and the Covered Person's supervisor based upon a determination that the board service would not be inconsistent with the interests of the Clients or in violation of this Code or the Code of Business Conduct.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;C.<u>SEC Pay-to-Play Rule – Political Contributions</u>

Covered Persons are permitted to make political contributions to elected officials, candidates, and others in a manner that is consistent with regulatory requirements and Westwood's Policies & Procedures Manual. Any Covered Person (other than Limited Access Persons who comply with paragraph (C)9 below) who is a "Covered Associate," as defined in the SEC Rule 204-2 (the "Pay-to-Play Rule", is referred to as a "Rule 204-2 Covered Associate." Rule 204-2 Covered Associate shall generally mean any:

&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;(i) Any executive officer of the Companies;

&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;(ii) Any Covered Person who solicits a government entity for the investment advisory services and any person who supervises, directly or indirectly, such Covered Person; and

&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;(iii) Any political action committee controlled by the investment adviser or by any person described in (i) or (ii) above.

Whether a Covered Person is a Rule 204-2 Covered Associate will be determined by the Chief Compliance Officer on a case by case basis.

It is never appropriate to make or solicit political contributions or provide gifts or entertainment for the purpose of improperly influencing the actions of public officials. Accordingly, our policy is to restrict, monitor, and require prior approval of any political contributions.

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&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Every 204-2 Covered Associate who is newly hired or Covered Person who becomes a Rule 204-2 Covered Associate must provide information to the Chief Compliance Officer no later than 30 days after his or her date of hire regarding any political contributions made within the preceding two years of his or her date of hire.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Prior to accepting a new advisory client that is a government entity, the Chief Compliance Officer will review any political contributions made by Rule 204-2 Covered Associates.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.No political contribution may be made by any Rule 204-2 Covered Associates unless the contribution has been approved by the Chief Compliance Officer in advance.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.An electronic pre-clearance request must be submitted through the Compliance Monitoring System (including the name and title of the recipient, the amount, and the anticipated date of the contribution), and an emailed notification of pre-clearance must be received before the contribution is made.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.After reviewing the proposed contribution to the candidate and the level of potential involvement the Companies may have with such candidate or a government entity with which such candidate is or may become affiliated, the Chief Compliance Officer, and an Executive Manager when appropriate, will approve (or disapprove) a pre-clearance request as expeditiously as possible. Proposed contributions will generally be approved unless it is believed for any reason that the Rule 204-2 Covered Associate's contribution may currently or in the future violate the Pay-to-Play Rules.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6.Contribution pre-clearance approval for the Chief Compliance Officer must be obtained from both another member of the Legal Team and an Executive Manager.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.On an annual basis, all Rule 204-2 Covered Associates must submit disclosure certifications regarding their political contributions and must ensure that all required information (including the name and title of each recipient, the amount, and the exact date each contribution was ultimately made) is disclosed.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.On an annual basis, all Covered Persons must submit a certification with respect to their activities on behalf of the Companies with respect to any sales activities involving government entities.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9.No Limited Access Persons may solicit any "government entity" as defined in the SEC's Pay-To-Play Rules, including any sales, marketing, client service activities or communications directed at a client or prospective client that is a government entity.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;D.<u>Disclosure of Conflicts</u>

Full disclosure to the Compliance Department of any potential conflict of interest is required as soon as such potential conflict is discovered. If you believe that unusual circumstances justify your engaging in an activity that may result in a conflict of interest, you may request in writing that the Compliance Department review the situation and grant a waiver in consultation with senior management, which consists of the Chief Executive Officer, Chief Compliance Officer, and Director of Fiduciary Services.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;E.<u>Reporting</u> <u>of</u> <u>Violations</u>

Violations of the Code of Ethics must be promptly reported to the Chief Compliance Officer.

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Anonymous reporting is acceptable; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.All violations will be reviewed by the Compliance Department and/or the Westwood Holdings Group, Inc. Audit Committee.

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**VII.Reports and Additional Compliance Procedures**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;A.<u>Board Report</u><u>ing for Fund Client</u><u>s</u>

At least annually (or quarterly in the case of Items 4 and 5 below), each of the Companies that has a Fund Client or that provides principal underwriting services for a Fund Client shall, together with each Fund Client, furnish a written report to the Board of Directors of the Fund Client that:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Describes any issues arising under the Code since the last report;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.Certifies that Companies have developed procedures concerning Covered Persons' personal trading activities and reporting requirements relevant to such Fund Clients that are reasonably necessary to prevent violations of the Code;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Recommends changes, if any, to the Fund Clients' or the Companies' Codes of Ethics or procedures;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4.Provides a summary of any material or substantive violations of this Code by Covered Persons with respect to such Fund Clients which occurred during the past quarter and the nature of any remedial action taken; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5.Describes any material or significant violations or "exceptions" to any provisions of this Code of Ethics as determined under Article VI below.

**VIII.Certifications**

Annually, each Covered Person must certify that he or she has read and understood the Code and recognizes that he or she is subject to such Code. A Covered Person's initial Code of Ethics certification will be submitted through the Compliance Monitoring System. All other certifications will be submitted through the Compliance Monitoring System.

**IX.Sanctions**

Upon discovering that a Covered Person has not complied with the requirements of this Code, the Compliance Department will determine appropriate sanctions. The Chief Compliance Officer will consult on sanctions with senior management and the Covered Person's supervisor if necessary. In addition, the Board of Directors of the relevant Company or of the relevant Fund Client, whichever is most appropriate under the circumstances, may impose on that person whatever sanctions the Board deems appropriate, including, among other things, disgorgement of profit, censure, suspension, or termination of employment. Violations of requirements of this Code by employees or Covered Persons and any sanctions imposed in connection therewith shall be reported not less frequently than quarterly to the Board of Directors of any relevant Company or Fund Client, as applicable.

**X.Waivers**

The Compliance Department, in consultation with senior management, when necessary, reserves the right to grant, on a case-by-case basis, waivers to any provisions under this Code that would not be violations of Rule 204A-1. Any waivers made hereunder will be maintained in writing by the Compliance Department.

Requests for waivers to the personal investing restrictions set forth in Article III of this Code must be submitted in writing to the Chief Compliance Officer along with any Trading Approval request required for the transaction. Following are guidelines that will be considered when reviewing requests for personal investing restriction waivers:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.Access to research/analyst information: an employee requesting a waiver should have little or no access to research/analyst information;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2.De minimis trade: if an employee requests a waiver for a transaction in a security that is held in a Westwood Strategy, the transaction must, in the opinion of the Chief Compliance Officer, be a de minimis trade, i.e., a small number of shares in a security with sufficient market capitalization and trading volume such that is not likely to adversely affect the price of the security; or

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3.Expiration of stock options: the exercise of stock options granted by a previous employer that are about to expire.

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**XI.Preservation of Documents**

This Code, a copy of each report by a Covered Person, a record of any violation of this Code and any action taken as a result of the violation, a record of all written acknowledgments for each Covered Person, any written report made hereunder by the Companies or the Chief Compliance Officer, lists of all persons required to make reports, a list of any waivers, and the reasons therefor, with respect to Article III, and any records with respect to transactions pursuant to Article III above, shall be preserved with the records of the relevant Company and any relevant Fund Client for the period required by Rule 204A-1 and Rule 17j-l.

**XII.Other Laws, Rules and Statements of Policy**

Nothing contained in this Code shall be interpreted as relieving any Covered Person from acting in accordance with the provision of any applicable law, rule or regulation or any other statement of policy or procedure governing the conduct of such person adopted by the Companies, the Affiliates or the Fund Clients.

All activities of the Company must be conducted in full compliance with all applicable laws and regulations. Senior management should be informed regarding all matters pertinent to the Company's position regarding such laws and regulations. The Company expects all employees to follow the spirit as well as the letter of the law. In addition, Covered Persons are expected to fully comply with the Company's Amended and Restated Insider Trading Policy that prohibits illegal insider trading and the use of material non-public information. All employees are expected to cooperate fully with the Company's internal and outside auditors, attorneys, and regulatory examiners.

**XIII.Further Information**

If any person has any question with regard to the applicability of the provisions of this Code generally or with regard to any Securities transaction or transactions, they should consult the Chief Compliance Officer.

**Updated August 7, 2025**

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**Exhibit A**

**List of Affiliated Funds That Require Pre-Clearance for Personal Investing Activities**

Westwood Quality Value Fund – WHGLX & WWLAX

Westwood Quality MidCap Fund – WWMCX

Westwood Quality SMidCap Fund – WHGMX

Westwood Quality SmallCap Fund – WHGSX

Westwood Quality AllCap Fund – WQAIX

Westwood Alternative Income Fund – WMNIX

Westwood Income Opportunity Fund – WHGIX & WWIAX

Westwood Multi-Asset Income Fund – WHGHX & WSDAX

Westwood Salient MLP & Energy Infrastructure – SMPLX

Westwood Real Estate Income Fund – KIFYX

Westwood Broadmark Tactical Growth Fund – FTGWX

Westwood Broadmark Tactical Plus Fund – SBTIX

Morningstar U.S. Equity Fund – MSTQX

Teton Westwood Equity Fund

Teton Westwood Balanced Fund

Westwood LBRTY Global Equity ETF – BFRE

Westwood Enhanced Energy Income ETF – WEEI

Westwood Enhanced Midstream Income ETF – MDST

Principal Funds, Inc. – LargeCap Value Fund III

RBC Private U.S. Value Equity Pool

Timothy Plan Large/Mid Cap Value Fund

Timothy Plan Small Cap Value Fund

i

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**Exhibit B**

<u>PRE-CLEARANCE TRADING APPROVAL FORM</u>

I, _______________________(name), am a Covered Person or authorized officer thereof and seek pre-clearance to engage in the transaction described below, for the benefit of myself or another Covered Person:

<u>Acquisition or Disposition</u> (circle one)

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| |
|:---|
| &nbsp;&nbsp;Name of Account: |
| &nbsp;&nbsp;&nbsp;Account Number: |
| &nbsp;&nbsp;&nbsp;Date of Request: |
| &nbsp;&nbsp;&nbsp;Security (Name & Ticker): |
| &nbsp;&nbsp;&nbsp;Amount or # of Shares: |
| &nbsp;&nbsp;Broker: |

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If the transaction involves a Security that is not publicly traded, a description of proposed transaction, source of investment opportunity and any potential conflicts of interest:

I hereby certify that, to the best of my knowledge, the transaction described herein is not prohibited by the Code of Ethics and that the opportunity to engage in the transaction did not arise by virtue of my activities on behalf of any Client.

Signature: _________________________&nbsp;&nbsp;&nbsp;&nbsp;Print Name: ________________________

<u>Approved or Disapproved:</u> (circle one)

Date of Approval: _____________________________

Signature: _________________________&nbsp;&nbsp;&nbsp;&nbsp;Print Name: ________________________

Compliance Approval: ______________________________

ii