Report 
 
      
Registrant:   Principal International Fund, Inc. — List all N-SARs

Annual Report for the 2nd-half period ended at fiscal year end:  10/31/04

Were there any Answer File errors in the Filing?  None FoundNone Found by SEC InfoNot Checked by the FilerOne or more Found by SEC Info
Was the Answer File completed by the Registrant?  Yes

Is this an Amendment to a previous Report?  No
Is this a change to a previous Report?      No
 
Registrant 
 
 1.
SEC CIK:      353024
SEC File #:   811-03183

Telephone #:  515-247-5476
 
 2.
Address:      Principal Financial Group
              Des Moines, IA  50392
 
 3.
Is this the first Form N-SAR filed by the Registrant?  No
 
 4.
Is this the final Form N-SAR filed by the Registrant?  No
 
 
Funds/Series 
↑Top of Form N-SAR 
     
                                                                               
 7.
Is the Registrant a Funds/Series (multiple portfolios) company?  No
 
Custodian 
 
18.
Does the Registrant’s/Series’ Custodian(s) maintain some or all of the
Registrant’s/Series’ securities in a central depository or book-entry
system pursuant to Rule 17f-4?  Yes
 
Family of Investment Companies 
 
19.
Is the Registrant/Series part of a “family” of investment companies?  Yes

Total number of registered management investment companies, Series
and portfolios (excluding any Unit Investment Trusts) in the family:  102

The Identification Code of the family for Form N-SAR Filings:  PRINCORGRP
 
Brokerage Commissions Paid on Portfolio Transactions 
 
20.
The brokers who received the largest amount of gross brokerage
commissions during the period:
 
20.1
Broker:       Merrill Lynch, Pierce, Fenner & Smith
IRS #:        13-5674085
Commissions paid ($000s):  319
 
20.2
Broker:       UBS Warburg LLC
IRS #:        13-3873456
Commissions paid ($000s):  233
 
20.3
Broker:       Credit Suisse First Boston Corp.
IRS #:        13-5659485
Commissions paid ($000s):  167
 
20.4
Broker:       Morgan Stanley
IRS #:        13-2655998
Commissions paid ($000s):  147
 
20.5
Broker:       Lehman Brothers Inc.
IRS #:        13-2518466
Commissions paid ($000s):  122
 
20.6
Broker:       Citigroup Global Markets
IRS #:        52-1568099
Commissions paid ($000s):  113
 
20.7
Broker:       Morgan, J.P. Securities
IRS #:        13-3224016
Commissions paid ($000s):  93
 
20.8
Broker:       Deutsche Bank Securities Corp.
IRS #:        13-2730828
Commissions paid ($000s):  66
 
20.9
Broker:       Bear Stearns & Co.
IRS #:        13-3299429
Commissions paid ($000s):  50
 
20.10
Broker:       Goldman Sachs Co.
IRS #:        13-5108880
Commissions paid ($000s):  43
 
21.
Total brokerage commissions paid by the Registrant during the period:
  Aggregate paid ($000s):  1,637
 
Portfolio Transactions with Entities Acting as Principals 
 
22.
The entities acting as principals with whom the Registrant did the
largest amount of portfolio transactions, based on total value of
principal, during the period:
 
22.1
Entity:       Goldman Sachs Co.
IRS #:        13-5108880
Registrant’s purchases ($000s):  161,582
 
22.2
Entity:       Citigroup Global Markets
IRS #:        52-1568009
Registrant’s purchases ($000s):  135,454
 
22.3
Entity:       Morgan, J.P. Securities
IRS #:        13-3224016
Registrant’s purchases ($000s):  94,211
Registrant’s sales ($000s):  143
 
22.4
Entity:       Merrill Lynch Money Market Securities
IRS #:        13-2761776
Registrant’s purchases ($000s):  88,771
 
22.5
Entity:       Banc of America Securities, LLC
IRS #:        56-2058405
Registrant’s purchases ($000s):  32,139
 
22.6
Entity:       Morgan Stanley
IRS #:        13-2655998
Registrant’s purchases ($000s):  26,546
 
22.7
Entity:       Lehman Brothers Inc.
IRS #:        13-2518466
Registrant’s purchases ($000s):  23,879
 
22.8
Entity:       Banc One Capital Markets
IRS #:        36-3595942
Registrant’s purchases ($000s):  15,114
 
22.9
Entity:       General Electric Capital Corp.
IRS #:        13-1500700
Registrant’s purchases ($000s):  5,430
 
22.10
Entity:       Household Finance Corp.
IRS #:        36-1239445
Registrant’s purchases ($000s):  4,775
 
23.
Total purchase/sale transactions by the Registrant during the period:
   Aggregate purchases ($000s):  593,943
   Aggregate sales ($000s):  199
 
Holdings of Securities Issued by Registrant’s/Series’ Brokers or Dealers 
 
24.
At period end, did the Registrant/Series hold any securities of the
Registrant’s/Series’ regular brokers or dealers, or of the parents of
such brokers or dealers, that derive more than 15% of gross revenue from
securities-related activities?  Yes

25.

The brokers or dealers, or their parents (issuers):
 
25.1
Name:         UBS AG
Type of security owned:  Equity
Value of securities owned at period end ($000s):  2,580
 
Investment Company Type 
 
27.
Is the Registrant an “open-end” investment company?  Yes, Open-End
 
Sales and Repurchases 
 
28.
Monthly total Net Asset Value (NAV) of sales and repurchases of the
Registrant’s/Series’ shares:
 
1st Month of period:  ($000s)
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 1,997
      Reinvestment of dividends and distributions ................
 –
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 3,541
2nd Month:
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 2,047
      Reinvestment of dividends and distributions ................
 –
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 4,546
3rd Month:
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 1,855
      Reinvestment of dividends and distributions ................
 –
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 3,819
4th Month:
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 1,750
      Reinvestment of dividends and distributions ................
 –
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 4,450
5th Month:
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 1,899
      Reinvestment of dividends and distributions ................
 –
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 3,647
6th Month:
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 2,162
      Reinvestment of dividends and distributions ................
 –
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 5,248

Total of all months:  ($000s)
    Total NAV of shares sold:
      New sales (including exchanges) ............................
 11,710
      Reinvestment of dividends and distributions ................
 –
      Other ......................................................
 –
    Total NAV of shares redeemed & repurchased (inc. exchanges) ..
 25,251

Total NAV of the Registrant’s/Series’ share sales during the period
subject to a sales load ($000s):  4,697
 
Sales Load (Front-End or Deferred) and Fees (Redemption or Maintenance) 
 
29.
Was a front-end sales load deducted from any share sales during the
period?  Yes
 
30.
Total front-end sales loads collected from sales (including exchanges)
by Principal Underwriter or by any underwriter which is an affiliated
person of the Principal Underwriter, of the Registrant’s/Series’ shares
during the period ($000s):  399

The maximum sales load rate in effect at period end as a percentage of
the offering price:  5.75%
The minimum sales load rate in effect at period end as a percentage of
the offering price:  0.0%
 
31.
Net amount retained by the Registrant’s/Series’ Principal Underwriter or
by any underwriter or dealer which is an affiliated person of the
Principal Underwriter thereof from front-end sales loads collected from
sales of the Registrant’s/Series’ shares during the period ($000s):  157

Amount by which payout by the Registrant’s/Series’ Principal Underwriter
or by any underwriter which is an affiliated person of the Principal
Underwriter thereof to persons or entities selling the
Registrant’s/Series’ shares exceeded that reported in Item 30 ($000s):  0
 
32.
Amount the Registrant’s/Series’ Principal Underwriter and any
underwriters or dealers which are affiliated persons of the Principal
Underwriter paid to dealers which are not affiliated persons of the
Principal Underwriter for selling the Registrant’s/Series’ shares that
were sold with a front-end sales load during the period ($000s):  58
 
33.
Amount paid to a captive retail sales force of the Registrant’s/Series’
Principal Underwriter or of any underwriter or dealer which is an
affiliated person of the Principal Underwriter for selling the
Registrant’s shares that were sold with a front-end sales load during
the period ($000s):  184
 
34.
Did the Registrant/Series impose a deferred or contingent deferred sales
load during the period?  Yes
 
35.
Total deferred or contingent deferred sales loads collected during the
period from redemptions and repurchases of the Registrant’s/Series’
shares ($000s):  45
 
36.
Did the Registrant/Series retain all monies collected from the deferred
or contingent deferred sales loads during the period?  No

The net amount the Registrant/Series retained from deferred or
contingent deferred sales loads ($000s):  0
 
37.
Did the Registrant/Series impose a redemption fee other than a deferred
or contingent sales load during the period?  No
 
39.
Were any account maintenance fees or other administrative fees imposed
directly on shareholders during the period?  No
 
Payment Plan for the Distribution of Fund Shares 
 
40.
During the period, did the Registrant/Series have a plan of distribution
adopted pursuant to Rule 12b-1?  Yes
 
41.
During the period, did the Registrant/Series use its assets directly to
make payments under the 12b-1 plan?  Yes
 
42.
For the period, the percentage of total dollars paid directly by the
Registrant/Series under the 12b-1 plan for each of the following:

Percentage of Total Amount Paid  (%)
Advertising ............................................................
 –
Printing & mailing of prospectuses to other than current shareholders ..
 –
Payments to underwriters ...............................................
 100
Payments to brokers or dealers .........................................
 –
Direct payments to sales personnel .....................................
 –
Payments to banks and savings & loans ..................................
 –
Other uses, including payments to its Investment Adviser separate
  from the advisory fee ................................................
 –
Unallocated payments made for a combination of such services ...........
 –
 
43.
Total amount paid directly by the Registrant/Series pursuant to its
12b-1 plan ($000s):  517
 
44.
If an Investment Adviser or other affiliated person of the
Registrant/Series made unreimbursed payments pursuant to the 12b-1 plan,
the total amount of such payments ($000s):  0
 
Advisory Fee 
 
49.
Was the Registrant’s/Series’ advisory fee during the period based solely
on a percentage of its income?  No
 
50.
Was the Registrant’s/Series’ advisory fee during the period based on
some combined percentage of its income and assets?  No
 
51.
Was the Registrant’s/Series’ advisory fee during the period based in
whole or in part on its investment performance?  No
 
52.
Was the Registrant’s/Series’ advisory fee during the period based in
whole or in part on the assets, income or performance of other
Registrants?  No
 
53.
Were the expenses of the Registrant/Series limited or reduced at any
time during the period by some agreement or understanding other than by
Blue Sky Laws?  No
 
Miscellaneous Info 
 
55.
Did the Registrant/Series have any of the following outstanding at any
time during the period which exceeded 1% of aggregate net assets:
    Overdrafts?  No
    Bank loans?  No
 
56.
During the period, did the Registrant’s/Series’ Investment Adviser(s)
have advisory clients other than investment companies?  No
 
57.
Did the Registrant/Series adjust the number of its shares outstanding by
means of a stock split or stock dividend?  No
 
Classification and Asset Allocation 
 
62.
Does the Registrant/Series invest primarily in debt securities,
including convertible debt securities, options & futures on debt
securities or indices of debt securities?  No
 
66.
Is the Registrant/Series a Fund that usually invests in equity
securities, options & futures on equity securities, indices of equity
securities or securities convertible into equity securities?  Yes

Which best describes its primary investment objective:

    Aggressive capital appreciation?  No
               Capital appreciation?  No
    Growth?                           No
    Growth and income?                Yes
               Income?                No
    Total return?                     No
 
67.
Is the Registrant/Series a “balanced” Fund?  No
 
68.
Does the Registrant/Series have more than 50% of its net assets at
period end invested in the securities of issuers...
    Engaged primarily in production or distribution of precious metals?  No
    Located primarily in countries other than the United States?  Yes
 
69.
Is the Registrant/Series an index Fund?  No
 
Portfolio Turnover 
 
71.
Portfolio turnover rate for the period:
 
Purchases ($000s):  383,998
Sales ($000s):      408,246

Monthly average Value of portfolio ($000s):  234,448

Percent turnover (lesser of Purchases or Sales, divided by Value):  164%
 
Financial Info — Income and Expenses 
 
72.
The number of months covered by the values in Items 72 and 73:  12

Income  ($000s)
Net interest income ..............................................
 29
Net dividend income ..............................................
 5,060
Account maintenance fees .........................................
 –
Net other income .................................................
 194

Expenses  ($000s)
Advisory fees ....................................................
 2,023
Administrator fees ...............................................
 –
Salaries and other compensation ..................................
 –
Shareholder Servicing Agent fees .................................
 660
Custodian fees ...................................................
 189
Postage ..........................................................
 –
Printing expenses ................................................
 –
Directors’ fees ..................................................
 8
Registration fees ................................................
 38
Taxes ............................................................
 –
Interest .........................................................
 –
Bookkeeping fees paid to anyone performing this service ..........
 –
Auditing fees ....................................................
 12
Legal fees .......................................................
 –
Marketing/distribution payments, incl. Rule 12b-1 plan payments ..
 517
Amortization of organization expenses ............................
 –
Shareholder meeting expenses .....................................
 –
Other expenses ...................................................
 55
Total expenses ...................................................
 3,502

Expense reimbursements ($000s):   0

Net investment income ($000s):    1,781

Realized capital gains ($000s):   52,823
Realized capital losses ($000s):  13,477

Net unrealized appreciation during the period ($000s):  0
Net unrealized depreciation during the period ($000s):  4,435

Total income dividends for which the record date passed during the
period ($000s):  1,656

Total capital gains distributions for which the record date passed
during the period ($000s):  0
 
73.
Distributions per share for which the record date passed during the
period, shown in fractions of a cent, if so declared:

Dividends from net investment income:    $0.0518

Distribution of capital gains:  $0.0000
Other distributions:            $0.0000
 
Financial Info — Condensed Balance Sheet Data 
 
74.
Assets  ($000s)
Cash .............................................................
 165
Repurchase agreements ............................................
 21,398
Short-term debt securities, other than repurchase agreements .....
 3,780
Long-term debt securities, including convertible debt ............
 –
Preferred, conv. preferred and adjustable-rate preferred stock ...
 1,659
Common stock .....................................................
 235,814
Options on equities ..............................................
 –
Options on all futures ...........................................
 –
Other investments ................................................
 –
Receivables from portfolio instruments sold ......................
 777
Receivables from affiliated persons ..............................
 –
Other receivables ................................................
 401
All other assets .................................................
 5
Total assets .....................................................
 263,999

Liabilities  ($000s)
Payables for portfolio instruments purchased .....................
 2,626
Amounts owed to affiliated persons ...............................
 43
Senior long-term debt ............................................
 –
Other liabilities:
  Reverse repurchase agreements ..................................
 –
  Short sales ....................................................
 –
  Written options ................................................
 –
  All other liabilities ..........................................
 21,796

Equity  ($000s)
Senior equity ....................................................
 –
Net assets of common shareholders ................................
 239,534

Number of shares outstanding (000s):   29,623
Number of shares outstanding of a second class of shares (000s):  3,805

Net Asset Value (NAV) per share (to nearest cent):  $7.18
NAV per share of a second class of shares (to nearest cent):  $7.04

Total number of shareholder accounts:  45,970

Total value of assets in segregated accounts ($000s):  0
 
75.
Monthly average net assets during the period ($000s):  238,045
 
Additional Disclosures 
 
77.
Did the Registrant file any additional Exhibits with the filing of this
Report (listed here and filed either herewith — as one of the ‘EX-99.*’
↑Exhibits in this Filing — or separately and incorporated by reference)?  Yes

EX-99.77B:  Accountant’s Report re: Internal Controls?  Yes

EX-99.77Q1: Other Disclosure?  Yes
 
Subsidiaries 
 
78.
Does the Registrant have any wholly-owned investment company
subsidiaries whose operating and financial data are consolidated with
that of the Registrant in this Report?  No
 
Fidelity Bond in Effect at Fiscal Year End 
 
80.
Insurer:      Ici Mutual Insurance Co.

Aggregate face amount of coverage for the Registrant/Series on all bonds
on which it is named as an insured ($000s):  52,000
 
81.
Is the bond part of a joint fidelity bond(s) shared with other
investment companies or other entities?  Yes

How many other investment companies or other entities are covered by the
bond (counting each Fund/Series as a separate investment company):  102
 
82.
Does the mandatory coverage of the fidelity bond have a deductible?  Yes

The amount of the deductible ($000s):  75
 
83.
Were any claims with respect to this Registrant/Series filed under the
bond during the period?  No
 
84.
Were any losses incurred with respect to this Registrant/Series that
could have been filed as a claim under the fidelity bond but were not?  No
 
85.
Are the Registrant’s/Series’ Officers and Directors covered as Officers
and Directors of the Registrant/Series under any errors and omissions
insurance policy owned by the Registrant/Series or anyone else?  Yes

Were any claims filed under such policy during the period with respect
to the Registrant/Series?  No
 
 Signature 
 
↑Top of Form N-SAR 
     
                                                                               
/s/      AS Filean      
Name:   AS Filean
Title:  Sr Vice President