CERTIFIED SHAREHOLDER REPORT OF REGISTERED

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Table

of

Contents

Not

FDIC

or

NCUA

insured

May

lose

value

•

Not

a

deposit

•

No

bank

or

credit

union

guarantee

Not

insured

by

any

Federal

government

agency

Economic

&

Financial

Market

Review

1

Important

Fund

Information

2

Blue

Chip

Fund

(unaudited)

3

Bond

Market

Index

Fund

(unaudited)

4

Diversified

Real

Asset

Fund

(unaudited)

6

Edge

MidCap

Fund

(unaudited)

8

Global

Multi-Strategy

Fund

(unaudited)

9

International

Equity

Index

Fund

(unaudited)

10

International

Small

Company

Fund

(unaudited)

11

Opportunistic

Municipal

Fund

(unaudited)

12

Origin

Emerging

Markets

Fund

(unaudited)

13

Small-MidCap

Dividend

Income

Fund

(unaudited)

14

Small-MidCap

Growth

Fund

(unaudited)

15

Spectrum

Preferred

and

Capital

Securities

Income

Fund

(unaudited)

16

Financial

Statements

18

Notes

to

Financial

Statements

47

Schedules

of

Investments

74

Financial

Highlights

(includes

performance

information)

182

Report

of

Independent

Registered

Public

Accounting

Firm

208

Shareholder

Expense

Example

210

Supplemental

Information

212

1

Economic

&

Financial

Market

Review

The

major

theme

for

the

past

twelve

months

is

the

global

economic

recovery

from

the

COVID-19

U.S.

real

GDP

grew

at

an

average

quarter-over-quarter

annualized

rate

of

12.8%

in

the

last

four

quarters

after

a

31.2%

drop

in

2Q

2020

and

the

growth

rate

is

expected

to

remain

strong

in

the

coming

quarters.

Germany

and

Japan

GDP

also

recovered

sharply

after

it

bottomed

in

2Q

2020.

China

GDP

grew

at

a

slower

pace

in

the

first

half

of

2021

compared

to

the

second

half

of

2020

as

policymakers

adopted

deleveraging

measures

and

tightened

regulations

towards

various

business

sectors.

Economic

recovery

in

emerging

markets

has

been

generally

slower

than

developed

markets

due

to

slow

vaccination

progress

and

renewed

restrictions

the

delta

strain.

Global

manufacturing

Purchasing

Manager’

Index

(PMI)

remained

above

50

in

the

last

twelve

months

(a

number

above

50

means

manufacturing

activity

is

expanding

and

number

below

50

indicates

contraction),

and

the

latest

reading

as

of

August

2021

is

56.

Of

the

countries

tracked,

92%

showed

PMIs

higher

than

50.

GDP-weighted

developed

markets

PMI

is

59.1,

much

higher

than

50.7

of

emerging

markets.

The

strong

global

recovery

was

helped

by

extraordinarily

easy

financial

conditions.

Major

central

banks

around

the

globe

maintained

low

policy

rates

and

ample

liquidity

throughout

this

crisis

and

the

following

recovery

period.

Strong

but

desynchronized

growth

has

created

a

demand-supply

gap

in

global

goods

which

pushed

inflation

higher

during

the

last

twelve

months.

Global

inflation

increased

from

1.6%

in

August

2020

to

3.1%

in

July

2021.

Considering

low

vaccination

progress

compounded

by

a

more

contagious

strain

of

COVID-19

spreading

in

a

lot

of

export-oriented

countries,

supply

bottlenecks

could

persist

a

little

longer,

adding

upward

pressure

on

inflation.

Fueled

by

global

demand

recovery,

commodity

prices

represented

by

S&P

GSCI

total

return

index

increased

by

44%

during

the

last

twelve

months.

Copper

recovered

from

6682

to

9525

USD/MT

and

Nymex

crude

oil

rose

from

42.6

to

68.5

USD/Barrel.

As

of

August

2021,

global

earnings

have

recovered

to

pre-crisis

levels

as

the

two-year

compounded

growth

rate

turned

positive.

Compared

to

the

same

time

last

year,

MSCI

All

Country

World

Index

(ACWI)

trailing

12

months

earnings

per

share

(TTM

EPS)

grew

by

56%

as

of

August

2021.

MSCI

World

ex

USA

Index

experienced

bigger

losses

in

earnings

(TTM

EPS

down

-51%

as

of

August

2020)

but

exhibited

faster

recovery

with

a

118%

increase

during

the

last

twelve

months.

MSCI

U.S.

trailing

12

months

EPS

grew

by

33%

year-over-year,

helped

by

a

strong

recovery

in

small-cap

and

mid-cap

companies.

Technology

stocks

earnings

were

the

most

resilient,

with

decent

growth

during

recovery

phase

(38%

yoy

as

of

August

2021)

after

marginal

decline

as

of

August

2020

(NASDAQ

TTM

EPS

-3%

yoy).

MSCI

Emerging

Markets

(EM)

trailing

12

months

EPS

increased

by

49%

compared

to

same

time

last

year.

Global

equities

outperformed

global

fixed

income

over

the

last

twelve

months.

In

USD

terms,

MSCI

ACWI

recorded

29%

gains

year-over-

year

while

Bloomberg

Global

Aggregate

Corporate

Index

delivered

2%

returns.

Within

equities,

developed

market

outperformed

emerging

markets

by

9%

and

U.S.

outperformed

developed

market

ex

US

by

5%.

Within

U.S.,

small

and

mid-cap

outperformed

large-cap

and

value

outperformed

growth.

Bloomberg

US

Treasury

delivered

2%

loss

as

U.S.

10-year

treasury

yield

rising

from

70bps

(basis

points)

to

131bps.

Global

high

yield

bonds

beat

global

investment

corporate

bonds

and

global

treasury

bonds

by

6%

and

9%

respectively.

*Unless

otherwise

stated,

data

sources

are

Bloomberg,

FactSet,

and

Principal

Global

Asset

Allocation.

Data

as

of

2

Important

Fund

Information

The

following

information

applies

to

all

funds

shown

in

the

annual

report:

Securities

described

in

the

fund

commentary

may

no

longer

be

held

in

the

fund.

Investment

results

shown

represent

historical

performance

and

do

not

guarantee

future

results.

Your

investment’s

returns

and

principal

values

will

fluctuate

with

changes

in

interest

rates

and

other

market

conditions

so

the

value,

when

redeemed,

may

be

worth

more

or

less

than

original

costs.

Current

performance

may

be

lower

or

higher

than

the

performance

shown.

For

more

information,

including

the

most

recent

month-end

performance,

visit

principalfunds.com,

call

your

financial

professional,

or

call

800-222-5852.

A

sales

charge

may

apply

as

follows:

Class

A

shares:

maximum

up-front

sales

charges

on

sales

based

on

declining

rates

which

begin

at

3.75%

for

Diversified

Real

Asset

Fund,

Global

Multi-Strategy

Fund,

Opportunistic

Municipal

Fund,

and

Spectrum

Preferred

and

Capital

Securities

Income

Fund

and

5.50%

for

Blue

Chip

Fund,

Edge

MidCap

Fund,

International

Small

Company

Fund,

Origin

Emerging

Markets

Fund,

and

Small-MidCap

Dividend

Income

Fund;

Class

C

shares:

contingent

deferred

sales

charge

of

1%

on

redemptions

made

during

the

first

12

months;

Class

J

shares:

contingent

deferred

sales

charge

of

1%

on

redemptions

made

during

the

first

18

months.

Institutional

and

Class

R

shares

do

not

have

a

sales

charge.

See

the

prospectus

for

details.

Performance

listed

with

sales

charge

reflects

the

maximum

sales

charge.

*

Performance

assumes

reinvestment

of

all

dividends

and

capital

gains.

Extended

performance

is

calculated

based

on

the

historical

performance

of

the

Fund’s

oldest

share

class,

adjusted

for

the

fees

and

expenses

of

the

share

class

shown.

Performance

does

not

reflect

the

impact

of

federal,

state,

or

municipal

taxes.

If

it

did,

performance

would

be

lower.

**

Net

asset

value

is

not

adjusted

for

sales

charge.

***

Performance

shown

for

the

benchmark

assumes

reinvestment

of

all

dividends

and

distributions.

Indices

are

unmanaged,

and

individuals

cannot

invest

directly

in

an

index.

3

Blue

Chip

Fund

Investment

Advisor:

Principal

Global

Investors,

LLC

Performance

of

other

share

classes

will

differ.

Average

Annual

Total

Returns*

as

of

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

long-term

growth

of

capital.

The

fund

normally

invests

at

least

80%

of

its

net

assets,

plus

any

borrowings

for

investment

purposes,

in

equity

securities

of

companies

with

large

market

capitalizations

at

the

time

of

purchase

that,

in

the

fund's

investment

advisor's

opinion,

display

characteristics

of

a

"blue

chip"

company.

The

advisor

tends

to

focus

on

securities

of

companies

that

show

potential

for

growth

of

capital

as

well

as

an

expectation

for

above

average

earnings.

The

fund

invests

in

securities

of

foreign

companies,

as

well

as

companies

with

medium

market

capitalizations.

The

Blue

Chip

Fund’s

performance

was

helped

by

positive

company

selection,

especially

in

the

Financial

and

Health

Care

sectors.

Sector

allocation

also

contributed

positively,

benefiting

most

from

a

relatively

larger

weight

in

the

Communication

Services

sector.

The

largest

contributor

was

Alphabet,

the

parent

company

of

Google

and

YouTube.

Alphabet’s

core

businesses

continue

to

grow

at

an

impressive

rate

and

the

company’s

leadership

remains

willing

to

make

smart

long-term

investments.

The

contributor

was

Microsoft,

whose

strength

continues

to

be

its

enterprise

business.

CEO

Satya

Nadella

has

positioned

Microsoft

for

the

future,

with

key

investments

in

its

fast-growing

commercial

cloud

business.

Another

contributor

was

Brookfield

Asset

Management,

an

owner

and

operator

of

real

asset-based

businesses.

The

largest

detractor

from

performance

was

Amazon,

which

had

performance

slightly

better

than

flat

over

the

period

but

trailed

the

broader

market.

The

company

continues

to

pursue

long-term

opportunities,

benefiting

from

its

scale

and

inventive

culture.

The

detractor was

Mastercard,

one

of

the

leading

global

payments

companies

that

benefits

from

significant

network

effects.

The

company

is

positioned

well

in

fast-growing

markets

outside

the

United

States.

salesforce.com

was

another

detractor

over

the

period.

Founded

in

1999

by

CEO

Marc

Benioff,

salesforce.com

is

a

cloud

software

provider

with

a

market-leading

customer

relationship

management

(CRM)

solution.

Value

of

a

$10,000

Investment*

-

1-Year

5-Year

Since

Inception

Date

Extended

Performance

Inception

Date

*

Class

A

Shares

Excluding

Sales

Charge

30.18%

25.02%

20.07%

9/30/13

6/14/12

Including

Sales

Charge

23.02%

23.61%

19.34%

Class

C

Shares

Excluding

Sales

Charge

29.26%

24.08%

19.17%

9/30/13

6/14/12

Including

Sales

Charge

28.26%

24.08%

19.17%

Class

J

Shares

Excluding

Sales

Charge

30.38%

25.14%

20.29%

9/11/17

6/14/12

Including

Sales

Charge

29.38%

25.14%

20.29%

Institutional

Shares

30.51%

25.44%

20.64%

6/14/12

–

R-3

Shares

29.94%

24.82%

20.00%

3/29/16

6/14/12

R-4

Shares

30.18%

25.05%

20.23%

3/29/16

6/14/12

R-5

Shares

30.29%

25.20%

20.37%

3/29/16

6/14/12

R-6

Shares

30.66%

25.53%

20.65%

1/3/17

6/14/12

*Extended

performance

is

calculated

based

on

the

historical

performance

of

the

Fund’s

Institutional

Shares,

adjusted

for

the

fees

and

expenses

of

the

share

class

shown.

4

Bond

Market

Index

Fund

Investment

Advisor:

Principal

Global

Investors,

LLC

Performance

of

other

share

classes

will

differ.

Average

Annual

Total

Returns*

as

of

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

provide

current

income.

Under

normal

circumstances,

the

fund

invests

at

least

80%

of

its

net

assets,

plus

any

borrowings

for

investment

purposes,

in

investments

designed

to

track

the

Bloomberg

Barclays

U.S.

Aggregate

Bond

Index

(the

"index")

at

the

time

of

purchase.

The

index

is

composed

of

investment

grade,

fixed

rate

debt

issues

with

maturities

of

one

year

or

more,

including

government

securities,

corporate

securities,

and

asset-backed

and

mortgage-backed

securities

(securitized

products).

During

the

most

recently

completed

fiscal

year

ending

2021,

the

portfolio

performed

in

line

with

the

benchmark

during

the

past

twelve

months.

The

top

contributors

to

performance

included

security

specific

impacts

within

mortgage-backed

securities,

security

specific

impacts

within

U.S.

treasury

securities,

and

slightly

short

duration

position

relative

to

the

benchmark

as

interest

rates

increased.

The

top

detractors

from

performance

for

the

fiscal

year

included

lower

allocation

compared

to

benchmark

weight

to

commercial

mortgage-

backed

securities,

slightly

higher

allocation

compared

to

index

weight

to

U.S.

Treasury

securities,

and

slightly

lower

allocation

compared

to

index

weight

to

investment

grade

corporate

bonds.

Value

of

a

$10,000

Investment*

-

1-Year

5-Year

10-Year

Inception

Date

Class

J

Shares

Excluding

Sales

Charge

-0.44%

2.45%

2.38%

3/16/10

Including

Sales

Charge

-1.28%

2.45%

2.38%

Institutional

Shares

-0.18%

2.89%

2.99%

12/30/09

R-1

Shares

-1.02%

2.00%

1.98%

12/30/09

R-3

Shares

-0.84%

2.30%

2.29%

12/30/09

R-4

Shares

-0.51%

2.56%

2.52%

12/30/09

R-5

Shares

-0.44%

2.63%

2.61%

12/30/09

6

Diversified

Real

Asset

Fund

Investment

Advisor:

Principal

Global

Investors,

LLC

Sub-Advisors:

BlackRock

Financial

Management,

Inc.;

ClearBridge

Investments

(North

America)

Pty

Limited;

Credit

Suisse

Asset

Management,

LLC;

Delaware

Investments

Fund

Advisers;

Newton

Investment

Management

North

America

LLC;

Nuveen

Asset

Management

LLC;

Pictet

Asset

Management

SA;

Principal

Real

Estate

Investors,

LLC

Performance

of

other

share

classes

will

differ.

Average

Annual

Total

Returns*

as

of

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

a

long-term

total

return

in

excess

of

inflation.

Under

normal

circumstances,

the

fund

invests

at

least

80%

of

its

net

assets,

plus

any

borrowings

for

investment

purposes,

in

investments

real

assets

and

real

asset

companies.

It

allocates

its

assets

among

general

investment

categories

real

assets,

which

include

tangible

assets

and

investments

that

are

expected

to

perform

well

in

periods

of

rising

or

high

inflation,

such

as

the

following:

infrastructure,

natural

resources

and

timber,

commodities,

real

estate,

inflation-

indexed

bonds,

and

floating

rate

debt.

Derivatives

are

utilized

in

two

sleeves

within

the

Diversified

Real

Asset

Fund:

the

commodity

sleeve

sub-advised

by

Credit

Suisse

Asset

Management

and

the

Treasury

Inflation-Protected

Securities

sleeve

sub-advised

by

BlackRock

Financial

Management.

Credit

Suisse

utilizes

a

variety

of

commodity

derivatives

including

futures,

swaps,

options,

and

commodity-linked

notes.

BlackRock

utilizes

currency

and

interest

rate

derivatives

including

foreign

currency

interest

rate

futures,

interest

rate

swaps,

inflation

swaps,

and

interest

rate

options.

Foreign

currency contracts

are

used

to

manage

currency

exposure

for

non-U.S.

positions.

The

interest

rate

and

inflation

futures,

swaps,

and

options

are

used

to

express

breakeven

trades.

The

Diversified

Real

Asset

Fund

(DRA)

I-shares

returned

22.18%

for

the

year

ending

2021.

The

fund

outperformed

the

strategic

index,

which

returned

20.94%

for

the

year.

During

the

year

all

three

factors

of

manager

performance,

asset

allocation,

and

style

selection

were

positive

contributors.

Manager

performance

was

a

primary

driver

of

outperformance,

with

strong

security

selection

within

real

return,

specifically

in

Nuveen’s

floating

rate

securities

sleeve.

In

addition,

very

strong

manager

performance

from

both

Clearbridge

and

Delaware

contributed

in

the

infrastructure

bucket

of

the

portfolio.

Clearbridge

had

excellent

security

selection

within

electric

utilities

while

also

having

strong

contributions

from

its

out

of

index

exposure

to

independent

power

and

renewable

electricity

producers.

The

majority

of

Delaware’s

outperformance

came

within

utilities.

Their

overweight

to

gas

utilities

and

security

selection

within

water

and

multi-utilities

led

to

the

outperformance

versus

the

broader

global

infrastructure

index.

Asset

allocation

contributed

to

DRA’s

relative

performance,

benefiting

from

the

portfolio’s

overweight

to

natural

resources

and

commodities

along

with

the

underweight

to

real

return.

Within

natural

resources

the

recovery

in

manufacturing

and

industrial

production

spurred

demand

especially

for

base

metals

and

energy.

Energy

prices

recovered

during

the

past

year

to

be

at

or

near

pre-pandemic

levels.

Within

commodities,

the

portfolio’s

overweight

is

driven

by

the

improving

fundamental

backdrop

in

all

commodity

sectors,

including

energy,

metals,

and

agriculture.

Real

return

and

treasury

inflation-protected

securities

(TIPS)

specifically

continue

to

play

an

important

role

in

balancing

the

risk

profile

of

the

portfolio,

but

in

the

past

year,

the

portfolio

management

team

has

found

more

attractive

opportunities

in

other

asset

classes,

leading

to

an

underweight

in

real

return.

Style

selection

was

a

significant

contributor

over

the

past

year.

DRA’s

allocation

to

global

water

contributed

within

the

infrastructure

bucket.

Water

stocks

outperformed

broader

global

infrastructure

stocks.

The

stability

of

cashflow

in

water

equities,

and

superior

growth

relative

to

other

utilities,

have

continued

to

support

the

allocation

to

the

global

water

sleeve.

Value

of

a

$10,000

Investment*

-

1-Year

5-Year

10-Year

Inception

Date

Extended

Performance

Inception

Date

*

Class

A

Shares

Excluding

Sales

Charge

21.79%

6.01%

3.29%

3/16/10

–

Including

Sales

Charge

17.26%

5.21%

2.90%

Institutional

Shares

22.18%

6.42%

3.69%

3/16/10

–

R-3

Shares

21.47%

5.85%

3.15%

3/29/16

3/16/10

R-4

Shares

21.79%

6.07%

3.35%

3/29/16

3/16/10

R-5

Shares

21.99%

6.21%

3.48%

3/29/16

3/16/10

R-6

Shares

22.14%

6.45%

3.70%

12/31/14

3/16/10

7

Diversified

Real

Asset

Fund

There

were

only

three

sleeves

that

detracted

versus

the

strategic

index

during

the

past

year:

Global

Real

Estate,

Commodities,

and

commercial

mortgage-backed

securities

(CMBS).

The

global

real

estate

sleeve

detracted

through

asset

allocation

from

the

portfolio’s

underweight

to

real

estate

primarily

during

the

first

quarter

2021.

The

sleeve

also

detracted

through

manager

performance,

which

was

caused

by

Principal

Real

Estate

Investor’s

underweight

and

security

selection

within

the

retail

real

estate

investment

trust

(REIT)

sector,

as

retail

REITS

were

one

of

the

highest

performing

REIT

sectors

during

the

past

year.

Commodities

also

detracted

from

a

manager

performance

perspective;

Credit

Suisse’s

underperformance

was

driven

primarily

by

underweight

allocations

in

both

the

livestock

and

energy

sectors.

From

a

style

selection

standpoint,

the

portfolio’s

allocation

to

the

short-duration,

AAA-rated

CMBS

sleeve

underperformed

TIPS

during

the

past

year.

*

Extended

performance

is

calculated

based

on

the

historical

performance

of

the

Fund’s

Institutional

Shares,

adjusted

for

the

fees

and

expenses

of

the

share

class

shown.

***

The

Fund

uses

a

blended

benchmark,

Diversified

Real

Asset

Strategic

Index,

which

shows

how

the

Fund’s

performance

compares

to

a

blend

of

indices

with

similar

investment

objectives.

Diversified

Real

Asset

Strategic

Index

is

composed

of

35%

Bloomberg

Barclays

U.S.

Treasury

TIPS

Index,

20%

S&P

Global

Infrastructure

Index

NTR,

20%

S&P

Global

Natural

Resources

Index

NTR,

15%

Bloomberg

Commodity

Index,

and

10%

FTSE

EPRA/NAREIT

Developed

Index

NTR.

8

Edge

MidCap

Fund

Investment

Advisor:

Principal

Global

Investors,

LLC

Performance

of

other

share

classes

will

differ.

Average

Annual

Total

Returns*

as

of

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

long-term

growth

of

capital.

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

at

the

time

of

purchase.

It

invests

in

real

estate

investment

trust

securities.

The

fund

invests

in

equity

securities

with

value

and/or

growth

characteristics

and

constructs

an

investment

portfolio

that

has

a

"blend"

of

equity

securities

with

these

characteristics.

YETI

Holdings,

Inc.

(YETI)

outperformed

as

the

company

posted

strong

results,

beating

expectations

across

its

coolers

and

drinkware

categories. Additionally,

the

company

has

been

able

to

successfully

grow

its

more

profitable

direct

to

consumer

channel.

Avery

Dennison

Corporation

(AVY)

outperformed

after

beating

expectations

across

all

three

segments

due

to

strong

demand

for

its

labels

and

RFID

products.

The

company

also

raised

its

2020

guidance

and

increased

its

dividend

during

the

past

year.

Cimarex

Energy

Company

(XEC)

outperformed

as

the

energy

sector

benefited

from

improving

sentiment

as

gas

prices

increase

and

the

economy

reopens.

The

company

continued

to

achieve

strong

free

cash

flow

generation

and

productivity

gains.

Black

Knight,

Inc.

(BKI)

lagged

as

the

company’s

2021

guidance

was

slightly

below

investor’s

expectations

due

to

slower

software

growth.

CyrusOne,

Inc.

(CONE)

detracted

from

results

as

results

were

lighter

than

expected

and

investors

embraced

REITS

that

were

more

levered

to

an

economic

reopening

in

light

of

positive

vaccine

news.

Teleflex

Incorporated

(TFX)

detracted

from

results

due

to

concerns

about

soft

sales

in

its

Urolift

product

and

increasing

competition.

Value

of

a

$10,000

Investment*

-

1-Year

5-Year

Since

Inception

Date

Extended

Performance

Inception

Date

*

Class

A

Shares

Excluding

Sales

Charge

32.16%

1

3.11%

14.82%

12/31/18

9/28/15

Including

Sales

Charge

24.89%

11.85%

13.73%

Institutional

Shares

32.55%

13.50%

15.22%

9/28/15

–

R-6

Shares

32.68%

13.73%

15.41%

1/3/17

9/28/15

*

Extended

performance

is

calculated

based

on

the

historical

performance

of

the

Fund’s

Institutional

Shares,

adjusted

for

the

fees

and

expenses

of

the

share

class

shown.

9

Global

Multi-Strategy

Fund

Investment

Advisor:

Principal

Global

Investors,

LLC

Sub-Advisors:

Gotham

Asset

Management,

LLC;

Graham

Capital

Management,

L.P.;

Loomis,

Sayles

&

Company,

L.P.;

Los

Angeles

Capital

Management

LLC;

Sound

Point

Capital

Management,

LP;

Wellington

Management

Company

LLP;

Westchester

Capital

Management

LLC

Performance

of

other

share

classes

will

differ.

Average

Annual

Total

Returns*

as

of

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

achieve

long-term

capital

appreciation

with

an

emphasis

on

positive

total

returns

and

managing

volatility.

The

fund

invests

in

a

broad

range

of

instruments

including,

but

not

limited

to,

equities,

bonds,

currencies,

commodities,

convertible

securities,

and

bank

loans.

Under

normal

market

conditions,

it

invests

in

securities

of

issuers

located

throughout

the

world,

including

the

U.S.,

invests

at

least

30%

of

its

net

assets

in

foreign

and

emerging

market

securities,

and

holds

investments

tied

economically

to

at

least

twenty

countries.

Derivatives

are

used

by

Global

Multi-Strategy

Fund’s

subadvisors

on

both

the

long

and

short

side

of

their

portfolios

to

synthetically

gain

exposure

or

express

a

bearish

view

on

securities

or

assets.

In

addition,

derivatives

are

also

used

by

GMS’s

subadvisors

for

hedging

purposes.

All

ten

sleeves

in

the

GMS

portfolio

were

positive

for

the

12-month

period

ending

August

2021.

The

equity

long/short

sleeve

sub-advised

by

LA

Capital

was

the

top

contributor

with

gains

driven

by

exposure

to

companies

with

favorable

analyst

insight

and

higher

quality

companies.

Gains

were

partly

offset

by

the

sleeve’s

underweight

positioning

in

value

stocks.

The

credit

sleeve

sub-advised

by

Loomis

Sayles

profited

from

exposure

to

securitized

assets,

high

yield

corporate

bonds,

and

investment

grade

corporate

bonds.

Positions

in

sovereign

debt

and

interest

rate

futures

detracted

from

performance.

The

market

neutral

sleeve

sub-advised

by

KLS

was

also

among

the

top

contributors,

with

gains

driven

by

exposure

to

structured

products,

including

CMBS,

GSE

credit,

and

CLOs.

A

credit

position

in

Ligado

Networks

was

among

the

top

detractors.

The

equity

long/short

sleeve

sub-advised

by

Wellington

contributed

positively

with

results

driven

by

the

US

all

cap,

US

small

cap

and

Europe

total

return

strategies.

Losses

in

the

beta

management

and

options

strategies

detracted

from

performance.

The

equity

long/short

sleeve

sub-advised

by

Gotham

contributed

with

gains

driven

by

long

positions

in

the

consumer

discretionary

and

financials

sectors.

Gains

were

partly

offset

by

losses

on

the

short

side

in

the

consumer

discretionary

and

industrials

sectors.

The

emerging

markets

credit

sleeve

sub-advised

by

Finisterre

contributed

to

performance

with

gains

driven

by

positions

in

Tullow

Oil,

Ghana

sovereign

credit,

Chinese

government

bonds,

and

Ukrainian

sovereign

credit.

Exposures

to

Argentinian

sovereign

bonds,

Colombian

sovereign

bonds

and

the

Korean

Won

detracted.

The

macro

sleeve

sub-advised

by

Graham

benefited

from

long

positions

in

equity

indices,

agricultural

commodities,

and

energy.

Gains

were

partly

offset

by

losses

in

fixed

income,

primarily

driven

by

positions

in

the

long

end

of

the

curve

in

the

US

and

Europe.

Precious

metals

and

currencies

also

detracted.

The

event-driven

sleeve

sub-advised

by

York

gained

as

long

positions

in

Lamar

Advertising,

Twilio,

and

MongoDB

contributed

to

performance.

Long

positions

in

Envestnet,

Coupang,

and

JD.com

were

among

the

top

detractors.

The

credit

sleeve

sub-advised

by

Sound

Point

contributed

positively,

as

its

largest

positions

in

Southcross

Energy

and

Ecobat

performed

well.

4L

Technologies

was

also

a

top

contributor.

Detractors

for

the

period

were

marginal.

Sound

Point

has

been

instructed

to

liquidate

the

portfolio

and

is

currently

managing

the

remaining

small

number

of

illiquid

holdings.

The

event-driven

sleeve

sub-advised

by

Westchester

gained

slightly

as

arbitrage

positions

in

Maxim

Integrated/Analog

Devices,

Coherent/II-VI,

and

Five9/Zoom

benefited

from

spread

tightening.

Gains

were

offset

by

an

arbitrage

position

in

Kansas

City

Southern/Canadian

Pacific

Railway.

In

terms

of

subadvisor

additions/terminations,

Westchester

was

added,

while

York

was

removed

during

the

last

12

months.

Value

of

a

$10,000

Investment*

-

1-Year

5-Year

Since

Inception

Date

Extended

Performance

Inception

Date

*

Class

A

Shares

Excluding

Sales

Charge

8.71%

3.80%

3.41%

10/24/11

–

Including

Sales

Charge

4.60%

3.00%

3.01%

Institutional

Shares

9.27%

4.22%

3.81%

10/24/11

–

R-6

Shares

9.37%

4.26%

3.82%

6/12/17

10/24/11

*

Extended

performance

is

calculated

based

on

the

historical

performance

of

the

Fund’s

Institutional

Shares,

adjusted

for

the

fees

and

expenses

of

the

share

class

shown.

10

International

Equity

Index

Fund

Investment

Advisor:

Principal

Global

Investors,

LLC

Performance

of

other

share

classes

will

differ.

Average

Annual

Total

Returns*

as

of

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

long-term

growth

of

capital.

The

fund

invests

at

least

80%

of

its

net

assets,

plus

any

borrowings

for

investment

purposes,

in

securities

that

compose

the

MSCI

EAFE

NTR

Index

at

the

time

of

purchase.

The

index

is

a

market-weighted

equity

index

designed

to

measure

the

equity

performance

of

developed

markets,

excluding

the

United

States

and

Canada.

The

advisor

employs

a

passive

investment

approach

designed

to

attempt

to

track

the

performance

of

the

index.

During

the

12

months

ending

in

August

2021,

the

Principal

International

Equity

Index

Fund

was

in

line

with

the

MSCI

EAFE

NTR Index.

The

Fund

uses

an

indexing

strategy

and

does

not

attempt

to

manage

market

volatility,

use

defensive

strategies

or

reduce

the

effect

of

any

long-term

periods

of

negative

stock

market

performance.

All

eleven

economic

sectors

in

the

index

posted

positive

returns

during

the

period

as

information

technology

and

materials

posted

the

best

returns

for

the

year.

Banco

Bilbao

Vizcaya

Argentaria,

ASML

Holding,

and

Glencore

contributed

to

fund

performance

for

the

twelve

month

period

ending

in

August.

The

utilities

and

consumer

staples

sectors

were

the

weakest

performers

during

the

period.

The

a2

Milk

Company,

Atos,

and

TeamViewer

detracted

from

fund

performance

for

the

twelve

month

period

ending

in

August.

Value

of

a

$10,000

Investment*

-

1-Year

5-Year

10-Year

Inception

Date

Extended

Performance

Inception

Date

*

Institutional

Shares

26.03%

9.43%

7.04%

12/30/09

–

R-1

Shares

24.95%

8.48%

6.10%

12/30

/09

–

R-3

Shares

25.42%

8.81%

6.44%

12/30/09

–

R-4

Shares

25.56%

9.01%

6.64%

12/30/09

–

R-5

Shares

25.66%

9.15%

6.77%

12/30/09

–

R-6

Shares

26.14%

9.44%

7.01%

1/3/17

12/30/09

*Extended

performance

is

calculated

based

on

the

historical

performance

of

the

Fund’s

Institutional

Shares,

adjusted

for

the

fees

and

expenses

of

the

share

class

shown.

11

International

Small

Company

Fund

Investment

Advisor:

Principal

Global

Investors,

LLC

Performance

of

other

share

classes

will

differ.

Average

Annual

Total

Returns*

as

of

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

long-term

growth

of

capital.

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

at

the

time

of

purchase.

It

invests

primarily

in

foreign

equity

securities.

The

fund

typically

invests

in

foreign

securities

of

more

than

10

countries

but

has

no

limitation

on

the

percentage

of

assets

that

is

invested

in

each

country

or

denominated

in

any

currency.

Stock

selection

in

Canada

stood

out

as

a

key

positive

contributor

to

relative

performance

during

the

past

12-months.

Canadian

transportation

holdings

benefited

from

increased

shipping

volumes

associated

with

the

growing

use

of

e-commerce.

Additionally,

Canadian

metals

and

mining

holdings

performed

well

amid

rising

copper

prices.

Overall,

stock

selection

within

consumer

staples

and

health

care

sectors

stood

out

as

key

contributors

to

relative

performance.

Stock

selection

in

Europe

and

Japan

detracted

most

strongly

from

relative

performance

during

the

period.

In

Europe,

stock

selection

among

French

insurance

holdings

detracted

from

relative

performance

while

German

media

holdings

also

underperformed.

Specifically,

Japanese

capital

goods

holdings

underperformed

amid

lower-than-expected

guidance

the

uncertainty

of

the

trajectory

of

the

economic

recovery

within

the

region.

The

industrials

and

information

technology

sectors

were

the

largest

negative

contributors

to

relative

performance.

Value

of

a

$10,000

Investment*

-

1-Year

5-Year

Since

Inception

Date

Extended

Performance

Inception

Date

*

Institutional

Shares

28.27%

10.38%

7.10%

12/31/14

6/11/14

R-6

Shares

28.27%

10.50%

7.08%

1/3/17

6/11/14

*

Extended

performance

is

calculated

based

on

the

historical

performance

of

the

Fund’s

Class

A

Shares,

which

discontinued

operations

on

2021,

adjusted

for

the

fees

and

expenses

of

the

share

class

shown.

12

Opportunistic

Municipal

Fund

Investment

Advisor:

Principal

Global

Investors,

LLC

Performance

of

other

share

classes

will

differ.

Average

Annual

Total

Returns*

as

of

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

provide

a

high

level

of

income

that

is

exempt

from

federal

income

tax

while

protecting

investors'

capital.

The

fund

invests

at

least

80%

of

its

net

assets,

plus

any

borrowings

for

investment

purposes,

in

municipal

obligations

(securities

issued

by

or

on

behalf

of

state

or

local

governments

and

other

public

authorities).

It

invests

in

other

debt

obligations,

including

(but

not

limited

to)

taxable

municipal

obligations,

U.S.

Treasury

securities,

obligations

of

the

U.S.

government,

its

agencies

and

instrumentalities

("Agency

Securities")

and

exchange-traded

funds

(ETFs)

to

gain

exposure

to

the

municipal

market.

Allocation

to

NuStar

Logistics,

Florida

Brightline

Rail,

and

Mohegan

Tribal

Finance

Authority

contributed.

Allocation

to

Oregon

Red

Rock

Biofuels,

Ohio

FirstEnergy

Solutions,

and

Chicago

Board

of

Education

detracted.

Value

of

a

$10,000

Investment*

-

1-Year

5-Year

Since

Inception

Incepti

on

Date

Extended

Performance

Inception

Date

*

Class

A

Shares

Excluding

Sales

Charge

10.43%

4.88%

5.63%

6/14/12

–

Including

Sales

Charge

6.26%

4.09%

5.20%

Institutional

Shares

10.73%

5.19%

5.83%

3/10/15

6/14/12

*

Extended

performance

is

calculated

based

on

the

historical

performance

of

the

Fund’s

Class

A

Shares,

adjusted

for

the

fees

and

expenses

of

the

share

class

shown.

13

Origin

Emerging

Markets

Fund

Investment

Advisor:

Principal

Global

Investors,

LLC

Sub-Advisor:

Origin

Asset

Management

LLP

Performance

of

other

share

classes

will

differ.

Average

Annual

Total

Returns*

as

of

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

long-term

growth

of

capital.

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

at

the

time

of

purchase.

The

advisor

considers

a

security

to

be

tied

economically

to

an

emerging

market

(an

"emerging

market

security")

if

the

issuer

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.

During

the

past

fiscal

year

the

Fund

experienced a

period

of

strong

absolute

returns

with

the

Fund

lagging

its

benchmark

index.

Positive

stock

selection

in

Taiwan

was

helpful,

while

negative

stock

selection

in

both

China

and

Korea

more

than

offset

the

Taiwanese

gains.

Looking

at

sectors,

poor

performance

from

Chinese

healthcare

stocks

and

from

raw

materials

companies

in

general

weighed

on

performance.

Cement

companies

in

particular

showed

weakness.

In

contrast,

our

higher

than

average

exposure

to

strongly

performing

semiconductor

names

was

helpful.

Value

of

a

$10,000

Investment*

-

1-Year

5-Y

ear

Since

Inception

Date

Class

A

Shares

Excluding

Sales

Charge

14.95%

10.03%

6.08%

1/23/15

Including

Sales

Charge

8.62%

8.79%

5.17%

Institutional

Shares

15.42%

10.53%

6.26%

1/23/15

R-6

Shares

15.61%

10.61%

6.32%

1/23/15

14

Small-MidCap

Dividend

Income

Fund

Investment

Advisor:

Principal

Global

Investors,

LLC

Performance

of

other

share

classes

will

differ.

Average

Annual

Total

Returns*

as

of

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

provide

current

income

and

long-term

growth

of

income

and

capital.

The

fund

invests

at

least

80%

of

its

net

assets,

plus

any

borrowings

for

investment

purposes,

in

dividend-paying

equity

securities

of

companies

with

small

to

medium

market

capitalizations

at

the

time

of

purchase.

Its

investments

include

the

securities

of

foreign

issuers

and

real

estate

investment

trusts.

East

West

Bancorp,

Inc.

(EWBC)

outperformed

as

banks

continued

to

surge

due

to

positive

vaccine

developments

and

anticipation

of

an

economic

recovery.

The

company

also

beat

earnings

expectations

due

to

strong

commercial

&

industrial

loan

growth,

reduced

credit

provisions

and

record

residential

mortgage

originations.

Assured

Guaranty

Ltd.

(AGO)

contributed

to

relative

performance

as

additional

clarity

around

the

restructuring

of

the

company’s

Puerto

Rican

book

of

business.

Bank

OZK

(OZK)

also

benefited

from

bank

enthusiasm.

Bank

OZK

also

posted

strong

results,

benefiting

from

lower

early

pre-payments

and

strong

real

estate

origination

trends.

James

River

Group

Holdings

Ltd

(JRVR)

detracted

from

results.

The

company

took

a

reserve

for

its

Uber

business

and

raised

equity

during

the

year.

CyrusOne,

Inc.

(CONE)

detracted

from

results

as

results

were

lighter

than

expected

and

investors

embraced

REITS

that

were

more

levered

to

an

economic

reopening

in

light

of

positive

vaccine

news.

Energizer

Holdings,

Inc.

(ENR)

detracted

despite

robust

sales

growth

and

a

significant

earnings

beat

as

investors

focused

on

difficult

upcoming

comparisons

and

the

impact

that

higher

inflation

and

transportation

costs

could

have

on

gross

margins.

Value

of

a

$10,000

Investment*

-

1-Year

5-Year

10-Year

Inception

Date

Extended

Performance

Inception

Date

*

Class

A

Shares

Excluding

Sales

Charge

4

4.42%

8.46%

11.40%

6/6/11

–

Including

Sales

Charge

36.52%

7.24%

10.77%

Class

C

Shares

Excluding

Sales

Charge

43.44%

7.67%

10.63%

6/14/12

6/6/11

Including

Sales

Charge

42.44%

7.67%

10.63%

Institutional

Shares

44.89%

8.77%

11.78%

6/6/11

–

R-6

Shares

45.03%

8.87%

11.81%

1/3/17

6/6/11

*

Extended

performance

is

calculated

based

on

the

historical

performance

of

the

Fund’s

Institutional

Shares,

adjusted

for

the

fees

and

expenses

of

the

share

class

shown.

15

Small-MidCap

Growth

Fund

Investment

Advisor:

Principal

Global

Investors,

LLC

Performance

of

other

share

classes

will

differ.

Average

Annual

Total

Returns*

as

of

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

long-term

growth

of

capital.

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

to

medium

market

capitalizations

at

the

time

of

purchase.

For

this

fund,

companies

with

small

to

medium

market

capitalizations

are

those

with

market

capitalizations

within

the

range

of

companies

in

the

Russell

2500

Growth

Index.

Silicon

Valley

Bank

(SVB),

a

strong

contributor

to

performance,

is

a

regional

bank

specifically

targeting

clients

in

the

life

sciences

and

technology

industries.

SVB

benefitted

from

its

differentiated

business

model

as

investments

in

technology

continue

to

reach

new

highs

across

a

wide

variety

of

industries.

Plug

Power

was

another

contributor

and

is

a

provider

of

hydrogen

and

fuel

cell

solutions

for

both

industrial

and

commercial

customers.

Plug's

expansion

into

Walmart

and

Amazon

for

warehouse

material

handling

solutions

is

vastly

superior

to

battery

powered

alternatives.

In

addition,

Plug's

power

generation

and

transportation

opportunities

should

drive

future

revenue

growth.

Nuance

also

performed

well

and

is

a

leader

in

voice

and

language

solutions

including

conversational

artificial

intelligence.

Its

shares

appreciated

when

Microsoft

announced

an

acquisition

to

buy

Nuance

for

a

20%

premium.

Tandem,

a

manufacturer

of

insulin

pumps,

was

a

detractor

to

performance

in

the

fiscal

year.

The

stock

underperformed

due

to

concerns

around

competition

from

other

insulin

delivery

systems,

possibly

reducing

their

potential

share

of

new

patients.

Fox

Factory

was

a

negative

contributor

to

performance

as

well.

Fox

is

a

manufacture

of

shock

absorbers

for

the

motorcycle

and

recreational

off-road

vehicle

market.

While

Fox

was

a

positive

contributor

in calendar

year 2020,

profit

taking

at

the

beginning

of

the

fiscal

year

resulted

in

slightly

negative

contribution.

Haemonetics,

specializing

in

blood

plasma

collection

and

also

detracted

from

performance.

It

declined

after

a

key

client

surprisingly

announced

it

would

not

renew

a

critical

supply

agreement.

Value

of

a

$10,000

Investment*

-

1-Year

Since

Inception

Date

Institutional

Shares

44.49%

38.86%

6/12/19

16

Spectrum

Preferred

and

Capital

Securities

Income

Fund

Investment

Advisor:

Principal

Global

Investors,

LLC

Sub-Advisor:

Spectrum

Asset

Management,

Inc.

Performance

of

other

share

classes

will

differ.

Average

Annual

Total

Returns*

as

of

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?

The

investment

seeks

to

provide

current

income.

The

fund

invests

at

least

80%

of

its

net

assets,

plus

any

borrowing

for

investment

purposes,

in

preferred

securities

and

capital

securities

at

the

time

of

purchase.

Preferred

securities

typically

include

preferred

stock

and

various

types

of

junior

subordinated

debt

and

trust

preferred

securities.

It

concentrates

its

investments

(invests

more

than

25%

of

its

net

assets)

in

securities

in

one

or

more

industries

(i.e.,

banking,

insurance

and

commercial

finance)

within

the

financial

services

sector.

The

period

began

with

the

hybrid

markets

supported

by

ongoing

bond

purchases

from

the

Fed

helping

to

support

overall

financial

conditions.

Nonetheless,

the

hybrid

markets

corrected

in

September

to

end

a

5-month

positive

run

and

then

corrected

again

before

the

US

general

elections.

Markets

appeared

pleased

with

the

prospects

of

an

incoming

Biden

Administration

as

hybrids

rallied

over

3points

after

the

election

to

close

out

2020

at

premiums.

But

the

new

year

brought

concern

over

inflation

which

led

to

a

16pt

decline

in

the

30yr

US

treasury

bond

by

March

--

one

of

the

swiftest

quarterly

declines

in

3

decades.

Credit

spreads

in

the

hybrid

market

tightened

by

16bps

during

this

decline

helping

to

foster

a

softer

landing

for

the

junior

subordinated

sector.

From

this

point,

the

Fed

was

determined

to

emphasize

a

“transitory”

inflation

narrative

to

the

bond

market

which

triggered

a

significant

reversal

and

rally

in

longer

term

treasuries

as

the

force

of

bond

buying

squeezed

the

short

sellers.

Over

the

12-month

period,

prices

in

the

retail

$25par

market

rose

over

1pt,

while

institutional

preferred

securities

rose

over

3pts,

and

contingent

convertible

capital

securities

rose

almost

3pts.

Spreads

were

tighter

across

the

board

as

significant

new

issue

flow

that

was

well

received

helped

to

drive

enthusiasm

for

yield.

Factors

that

contributed

to

the

Fund’s

performance

were

significant

overall

demand

for

credit

given

investors’

confidence

the

economy’s

recovery

and

its

expected

benefit

from

COVID-19

vaccinations

and

surging

government

spending.

Yields

for

junior

subordination

declined

60-70bps

and

spreads

tightened

by

95-115bps.

Among

the

credit

contributors

were

the

Fund’s

30%

allocation

to

US

bank

additional

tier1

securities

contributed

215bps

to

return

compared

to

219bps

for

the

benchmark

(a

25%

allocation);

the

26%

allocation

to

additional

tier1

of

non-US

banks

contributed

195bps

compared

to

1bp

for

the

benchmark

(a

1%

allocation)

and

the

18%

allocation

to

insurance

hybrids

contributed

161bps

compared

to

69bps

for

the

benchmark

(a

12%

allocation).

Credit

detractors

from

the

fund

were

less

positive

and

included

senior

debt,

baby

bonds,

and

subordinated

debt

which

contributed

a

sum

of

2bps

to

return

compared

to

37bps

for

the

benchmark.

Value

of

a

$10,000

Investment*

-

1-Year

5-Year

10-Year

Inception

Date

Extended

Performance

Inception

Date

*

Class

A

Shares

Excluding

Sales

Charge

7.32%

5.46%

6.60%

6/28/05

–

Including

Sales

Charge

3.31%

4.67%

6.20%

Class

C

Shares

Excluding

Sales

Charge

6.58%

4.68%

5.97%

1/16/07

–

Including

Sales

Charge

5.58%

4.68%

5.97%

Class

J

Shares

Excluding

Sales

Charge

7.50%

5.49%

6.55%

12/29/03

–

Including

Sales

Charge

6.50%

5.49%

6.55%

Institutional

Shares

7.64%

5.74%

6.90%

5/1/02

–

R-1

Shares

6.75%

4.92%

6.04%

11/1/04

–

R-3

Shares

7.20%

5.25%

6.38%

6/1/04

–

R-4

Shares

7.31%

5.45%

6.58%

6/1/04

–

R-5

Shares

7.51%

5.57%

6.71%

6/1/04

–

R-6

Shares

7.64%

5.79%

6.88%

1/3/17

5/1/02

*

Extended

performance

is

calculated

based

on

the

historical

performance

of

the

Fund’s

Institutional

Shares,

adjusted

for

the

fees

and

expenses

of

the

share

class

shown.

Statements

of

Assets

and

Liabilities

Principal

Funds,

Inc.

18

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Blue

Chip

Fund

Bond

Market

Index

Fund

Diversified

Real

Asset

Fund

(a)

Investment

in

securities--at

cost

..........................................................

$

6,318,536‌

$

847,215‌

$

3,954,574‌

Investment

in

affiliated

Funds--at

cost

....................................................

$

18,611‌

$

77,789‌

$

129,281‌

Foreign

currency--at

cost

..................................................................

$

–‌

$

–‌

$

432‌

Assets

Investment

in

securities--at

value

..........................................................

$

11,070,565‌

$

882,492‌

(b)

$

4,301,936‌

(b)

Investment

in

affiliated

Funds--at

value

.....................................................

18,611‌

77,789‌

129,281‌

Foreign

currency--at

value

..................................................................

–‌

435‌

Cash

.........................................................................................

–‌

12,741‌

Deposits

with

counterparty

..................................................................

–‌

4,107‌

Receivables:

Dividends

and

interest

.................................................................

3,880‌

3,744‌

10,149‌

Expense

reimbursement

from

Manager

...............................................

366‌

11‌

320‌

Expense

reimbursement

from

Distributor

.............................................

4‌

–‌

Foreign

currency

...........................................................

–‌

522‌

Fund

shares

sold

.......................................................................

11,639‌

917‌

8,401‌

Investment

securities

sold

.............................................................

19,853‌

15,096‌

22,775‌

Unrealized

gain

on

unfunded

commitments

..........................................

–‌

237‌

Variation

margin

on

futures

...........................................................

–‌

8,164‌

Variation

margin

on

swaps

............................................................

–‌

482‌

Prepaid

directors'

expenses

..................................................................

–‌

4‌

–‌

Total

Assets

11,124,918‌

980,053‌

4,499,550‌

Liabilities

Accrued

management

and

investment

advisory

fees

........................................

5,382‌

106‌

2,948‌

Accrued

administrative

service

fees

........................................................

1‌

–‌

Accrued

distribution

fees

....................................................................

602‌

8‌

17‌

Accrued

service

fees

........................................................................

6‌

7‌

–‌

Accrued

transfer

agent

fees

.................................................................

701‌

28‌

429‌

Accrued

chief

compliance

officer

fees

......................................................

1‌

–‌

Accrued

directors'

expenses

.................................................................

22‌

–‌

5‌

Accrued

professional

fees

...................................................................

20‌

30‌

108‌

Accrued

other

expenses

.....................................................................

109‌

12‌

167‌

Cash

overdraft

...............................................................................

845‌

–‌

Deposits

from

counterparty

.................................................................

–‌

610‌

Payables:

Foreign

currency

............................................................

–‌

343‌

Fund

shares

redeemed

.................................................................

17,411‌

74‌

972‌

Investment

securities

purchased

......................................................

37,391‌

78,185‌

88,638‌

Options

and

swaptions

written

(premiums

received

$

0

,

$

0

and

$

2,303

)

...

–‌

1,801‌

Unrealized

loss

on

unfunded

commitments

...........................................

–‌

1‌

Variation

margin

on

futures

...........................................................

–‌

5,255‌

Variation

margin

on

swaps

............................................................

–‌

552‌

Collateral

obligation

on

securities

loaned,

at

value

.........................................

–‌

3,247‌

13,851‌

Total

Liabilities

62,491‌

81,698‌

115,697‌

Net

Assets

Applicable

to

Outstanding

Shares

............................................

$

11,062,427‌

$

898,355‌

$

4,383,853‌

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

...............................................

$

5,681,058‌

$

851,923‌

$

3,904,757‌

Total

distributable

earnings

(accumulated

loss)

.............................................

5,381,369‌

46,432‌

479,096‌

Total

Net

Assets

$

11,062,427‌

$

898,355‌

$

4,383,853‌

Statements

of

Assets

and

Liabilities

Principal

Funds,

Inc.

19

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Blue

Chip

Fund

Bond

Market

Index

Fund

Diversified

Real

Asset

Fund

(a)

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

............................................................................

1,300,000‌

710,000‌

1,875,000‌

Net

Asset

Value

Per

Share:

Class

A

:

Net

Assets

..........................................................................

$

1,123,747‌

N/A‌

$

83,941‌

Shares

Issued

and

Outstanding

........................................................

26,384‌

6,206‌

Net

Asset

Value

per

share

.............................................................

$

42

.59‌

(c)

$

13

.53‌

(c)

Maximum

Offering

Price

..............................................................

$

45

.07‌

$

14

.06‌

Class

C

:

Net

Assets

..........................................................................

$

411,694‌

N/A‌

Shares

Issued

and

Outstanding

........................................................

10,316‌

Net

Asset

Value

per

share

.............................................................

$

39

.91‌

(c)

Class

J

:

Net

Assets

..........................................................................

$

221,942‌

$

36,254‌

N/A‌

Shares

Issued

and

Outstanding

........................................................

5,134‌

3,667‌

Net

Asset

Value

per

share

.............................................................

$

43

.23‌

(c)

$

9

.89‌

(c)

Institutional

:

Net

Assets

.....................................................................

$

3,141,819‌

$

831,018‌

$

2,086,484‌

Shares

Issued

and

Outstanding

........................................................

72,208‌

82,109‌

154,153‌

Net

Asset

Value

per

share

.............................................................

$

43

.51‌

$

10

.12‌

$

13

.54‌

R-1

:

Net

Assets

..............................................................................

N/A‌

$

1,148‌

N/A‌

Shares

Issued

and

Outstanding

........................................................

116‌

Net

Asset

Value

per

share

.............................................................

$

9

.89‌

R-3

:

Net

Assets

..............................................................................

$

11,204‌

$

11,264‌

$

225‌

Shares

Issued

and

Outstanding

........................................................

264‌

1,142‌

17‌

Net

Asset

Value

per

share

.............................................................

$

42

.51‌

$

9

.86‌

$

13

.43‌

R-4

:

Net

Assets

..............................................................................

$

5,608‌

$

4,099‌

$

14‌

Shares

Issued

and

Outstanding

........................................................

130‌

411‌

1‌

Net

Asset

Value

per

share

.............................................................

$

42

.89‌

$

9

.97‌

$

13

.50‌

R-5

:

Net

Assets

..............................................................................

$

12,383‌

$

14,572‌

$

38‌

Shares

Issued

and

Outstanding

........................................................

287‌

1,466‌

3‌

Net

Asset

Value

per

share

.............................................................

$

43

.20‌

$

9

.94‌

$

13

.51‌

R-6

:

Net

Assets

..............................................................................

$

6,134,030‌

N/A‌

$

2,213,151‌

Shares

Issued

and

Outstanding

........................................................

140,544‌

163,542‌

Net

Asset

Value

per

share

.............................................................

$

43

.64‌

$

13

.53‌

(a)

Consolidated

financial

statement;

see

"Basis

for

Consolidation"

in

Notes

to

Financial

Statements.

(b)

Includes

fair

market

value

of

securities

loaned,

see

"Securities

Lending"

in

Notes

to

Financial

Statements.

(c)

Redemption

price

per

share

is

equal

to

net

asset

value

per

share

less

any

applicable

contingent

deferred

sales

charge.

Statements

of

Assets

and

Liabilities

Principal

Funds,

Inc.

20

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Edge

MidCap

Fund

Global

Multi-Strategy

Fund

(a)

International

Equity

Index

Fund

Investment

in

securities--at

cost

..........................................................

$

407,213‌

$

411,432‌

$

945,322‌

Investment

in

affiliated

Funds--at

cost

....................................................

$

12,944‌

$

93,359‌

$

10,018‌

Foreign

currency--at

cost

..................................................................

$

–‌

$

806‌

$

–‌

Assets

Investment

in

securities--at

value

..........................................................

$

571,805‌

$

444,759‌

$

1,243,909‌

(b)

Investment

in

affiliated

Funds--at

value

.....................................................

12,944‌

93,359‌

10,018‌

Foreign

currency--at

value

..................................................................

–‌

797‌

–‌

Cash

.........................................................................................

–‌

995‌

–‌

Deposits

with

counterparty

..................................................................

–‌

95,067‌

115‌

Receivables:

Dividends

and

interest

.................................................................

736‌

2,475‌

5,563‌

Expense

reimbursement

from

Manager

...............................................

34‌

58‌

9‌

Foreign

currency

...........................................................

–‌

1,272‌

–‌

Fund

shares

sold

.......................................................................

303‌

712‌

300‌

Investment

securities

sold

.............................................................

–‌

4,022‌

5,119‌

OTC

swap

agreements--at

value

(premiums

paid

$

0

,

$

0

and

$

0

)

.....................

–‌

168‌

–‌

Variation

margin

on

futures

...........................................................

–‌

441‌

–‌

Variation

margin

on

swaps

............................................................

–‌

19‌

–‌

Prepaid

directors'

expenses

..................................................................

2‌

–‌

Total

Assets

585,824‌

644,146‌

1,265,033‌

Liabilities

Accrued

management

and

investment

advisory

fees

........................................

344‌

761‌

264‌

Accrued

administrative

service

fees

........................................................

–‌

1‌

Accrued

distribution

fees

....................................................................

4‌

8‌

5‌

Accrued

service

fees

........................................................................

–‌

10‌

Accrued

transfer

agent

fees

.................................................................

24‌

51‌

10‌

Accrued

directors'

expenses

.................................................................

–‌

2‌

Accrued

professional

fees

...................................................................

20‌

157‌

54‌

Accrued

other

expenses

.....................................................................

11‌

70‌

321‌

Cash

overdraft

...............................................................................

–‌

1,389‌

Payables:

Dividends

and

interest

on

securities

sold

short

.......................................

–‌

93‌

–‌

Foreign

currency

............................................................

–‌

2,052‌

–‌

Fund

shares

redeemed

.................................................................

423‌

197‌

382‌

Investment

securities

purchased

......................................................

–‌

3,052‌

4,013‌

Options

and

swaptions

written

(premiums

received

$

0

,

$

593

and

$

0

)

.....

–‌

420‌

–‌

Short

sales

(proceeds

received

$

0

,

$

67,241

and

$

0

)

..................................

–‌

71,884‌

–‌

OTC

swap

agreements--at

value

(premiums

received

$

0

,

$

0

and

$

0

)

................

–‌

621‌

–‌

Unrealized

loss

on

unfunded

commitments

...........................................

–‌

27‌

–‌

Variation

margin

on

futures

...........................................................

–‌

1,043‌

2‌

Variation

margin

on

swaps

............................................................

–‌

8‌

–‌

Collateral

obligation

on

securities

loaned,

at

value

.........................................

–‌

10,500‌

Total

Liabilities

826‌

80,444‌

16,953‌

Net

Assets

Applicable

to

Outstanding

Shares

............................................

$

584,998‌

$

563,702‌

$

1,248,080‌

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

...............................................

$

286,737‌

$

526,596‌

$

916,765‌

Total

distributable

earnings

(accumulated

loss)

.............................................

298,261‌

37,106‌

331,315‌

Total

Net

Assets

$

584,998‌

$

563,702‌

$

1,248,080‌

Statements

of

Assets

and

Liabilities

Principal

Funds,

Inc.

21

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Edge

MidCap

Fund

Global

Multi-Strategy

Fund

(a)

International

Equity

Index

Fund

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

............................................................................

300,000‌

1,750,000‌

650,000‌

Net

Asset

Value

Per

Share:

Class

A

:

Net

Assets

..........................................................................

$

21,225‌

$

39,485‌

N/A‌

Shares

Issued

and

Outstanding

........................................................

1,141‌

3,354‌

Net

Asset

Value

per

share

.............................................................

$

18

.61‌

(c)

$

11

.77‌

(c)

Maximum

Offering

Price

..............................................................

$

19

.69‌

$

12

.23‌

Institutional

:

Net

Assets

.....................................................................

$

112,703‌

$

351,188‌

$

50,246‌

Shares

Issued

and

Outstanding

........................................................

6,025‌

29,352‌

4,055‌

Net

Asset

Value

per

share

.............................................................

$

18

.71‌

$

11

.96‌

$

12

.39‌

R-1

:

Net

Assets

..............................................................................

N/A‌

$

491‌

Shares

Issued

and

Outstanding

........................................................

42‌

Net

Asset

Value

per

share

.............................................................

$

11

.97‌

R-3

:

Net

Assets

..............................................................................

N/A‌

$

16,698‌

Shares

Issued

and

Outstanding

........................................................

1,377‌

Net

Asset

Value

per

share

.............................................................

$

12

.13‌

R-4

:

Net

Assets

..............................................................................

N/A‌

$

10,509‌

Shares

Issued

and

Outstanding

........................................................

856‌

Net

Asset

Value

per

share

.............................................................

$

12

.27‌

R-5

:

Net

Assets

..............................................................................

N/A‌

$

18,863‌

Shares

Issued

and

Outstanding

........................................................

1,532‌

Net

Asset

Value

per

share

.............................................................

$

12

.31‌

R-6

:

Net

Assets

..............................................................................

$

451,070‌

$

173,029‌

$

1,151,273‌

Shares

Issued

and

Outstanding

........................................................

24,018‌

14,464‌

92,871‌

Net

Asset

Value

per

share

.............................................................

$

18

.78‌

$

11

.96‌

$

12

.40‌

(a)

Consolidated

financial

statement;

see

"Basis

for

Consolidation"

in

Notes

to

Financial

Statements.

(b)

Includes

fair

market

value

of

securities

loaned,

see

"Securities

Lending"

in

Notes

to

Financial

Statements.

(c)

Redemption

price

per

share

is

equal

to

net

asset

value

per

share

less

any

applicable

contingent

deferred

sales

charge.

Statements

of

Assets

and

Liabilities

Principal

Funds,

Inc.

22

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

International

Small

Company

Fund

Opportunistic

Municipal

Fund

Origin

Emerging

Markets

Fund

Investment

in

securities--at

cost

..........................................................

$

924,652‌

$

170,477‌

$

3,521,392‌

Investment

in

affiliated

Funds--at

cost

....................................................

$

36,399‌

$

–‌

$

88,192‌

Foreign

currency--at

cost

..................................................................

$

4,710‌

$

–‌

$

–‌

Assets

Investment

in

securities--at

value

..........................................................

$

1,172,877‌

(a)

$

183,006‌

$

3,806,459‌

(a)

Investment

in

affiliated

Funds--at

value

.....................................................

36,399‌

–‌

88,192‌

Foreign

currency--at

value

..................................................................

4,705‌

–‌

Cash

.........................................................................................

–‌

2,906‌

166‌

Receivables:

Dividends

and

interest

.................................................................

3,137‌

1,783‌

8,210‌

Expense

reimbursement

from

Manager

...............................................

–‌

14‌

4‌

Fund

shares

sold

.......................................................................

259‌

1,134‌

431‌

Investment

securities

sold

.............................................................

4,483‌

1,159‌

400‌

Prepaid

expenses

............................................................................

–‌

1‌

–‌

Total

Assets

1,221,860‌

190,003‌

3,903,862‌

Liabilities

Accrued

management

and

investment

advisory

fees

........................................

1,024‌

74‌

3,269‌

Accrued

distribution

fees

....................................................................

–‌

12‌

2‌

Accrued

transfer

agent

fees

.................................................................

13‌

31‌

25‌

Accrued

directors'

expenses

.................................................................

1‌

–‌

11‌

Accrued

professional

fees

...................................................................

38‌

37‌

28‌

Accrued

foreign

tax

.........................................................................

–‌

7,413‌

Accrued

other

expenses

.....................................................................

86‌

–‌

224‌

Cash

overdraft

...............................................................................

–‌

31‌

Payables:

Dividends

payable

.....................................................................

–‌

438‌

–‌

Expense

reimbursement

to

Manager

..................................................

16‌

–‌

Fund

shares

redeemed

.................................................................

812‌

290‌

1,819‌

Interest

expense

and

fees

payable

.....................................................

–‌

14‌

–‌

Investment

securities

purchased

......................................................

13,398‌

5,940‌

–‌

Collateral

obligation

on

securities

loaned,

at

value

.........................................

24,946‌

–‌

27,304‌

Floating

rate

notes

issued

...................................................................

–‌

7,691‌

–‌

Total

Liabilities

40,334‌

14,527‌

40,126‌

Net

Assets

Applicable

to

Outstanding

Shares

............................................

$

1,181,526‌

$

175,476‌

$

3,863,736‌

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

...............................................

$

878,567‌

$

163,759‌

$

3,464,091‌

Total

distributable

earnings

(accumulated

loss)

.............................................

302,959‌

11,717‌

399,645‌

Total

Net

Assets

$

1,181,526‌

$

175,476‌

$

3,863,736‌

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

............................................................................

300,000‌

800,000‌

Net

Asset

Value

Per

Share:

Class

A

:

Net

Assets

..........................................................................

N/A‌

$

59,266‌

$

9,524‌

Shares

Issued

and

Outstanding

........................................................

5,060‌

673‌

Net

Asset

Value

per

share

.............................................................

$

11

.71‌

(b)

$

14

.16‌

(b)

Maximum

Offering

Price

..............................................................

$

12

.17‌

$

14

.98‌

Institutional

:

Net

Assets

.....................................................................

$

94,066‌

$

116,210‌

$

124,727‌

Shares

Issued

and

Outstanding

........................................................

6,985‌

9,917‌

8,939‌

Net

Asset

Value

per

share

.............................................................

$

13

.47‌

$

11

.72‌

$

13

.95‌

R-6

:

Net

Assets

..............................................................................

$

1,087,460‌

N/A‌

$

3,729,485‌

Shares

Issued

and

Outstanding

........................................................

80,255‌

266,698‌

Net

Asset

Value

per

share

.............................................................

$

13

.55‌

$

13

.98‌

(a)

Includes

fair

market

value

of

securities

loaned,

see

"Securities

Lending"

in

Notes

to

Financial

Statements.

(b)

Redemption

price

per

share

is

equal

to

net

asset

value

per

share

less

any

applicable

contingent

deferred

sales

charge.

Statements

of

Assets

and

Liabilities

Principal

Funds,

Inc.

24

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Small-MidCap

Dividend

Income

Fund

Small-MidCap

Growth

Fund

Spectrum

Preferred

and

Capital

Securities

Income

Fund

Investment

in

securities--at

cost

..........................................................

$

719,583‌

$

9,141‌

$

7,522,035‌

Investment

in

affiliated

Funds--at

cost

....................................................

$

12,632‌

$

260‌

$

230,734‌

Foreign

currency--at

cost

..................................................................

$

4‌

$

–‌

$

–‌

Assets

Investment

in

securities--at

value

..........................................................

$

1,100,238‌

$

11,273‌

$

8,157,995‌

(a)

Investment

in

affiliated

Funds--at

value

.....................................................

12,632‌

260‌

230,734‌

Foreign

currency--at

value

..................................................................

4‌

–‌

Deposits

with

counterparty

..................................................................

–‌

5,270‌

Receivables:

Dividends

and

interest

.................................................................

1,678‌

1‌

100,569‌

Expense

reimbursement

from

Manager

...............................................

45‌

3‌

–‌

Expense

reimbursement

from

Distributor

.............................................

–‌

1‌

Fund

shares

sold

.......................................................................

376‌

–‌

16,210‌

Investment

securities

sold

.............................................................

2,343‌

–‌

3,556‌

Variation

margin

on

futures

...........................................................

–‌

659‌

Prepaid

directors'

expenses

..................................................................

2‌

–‌

Total

Assets

1,117,318‌

11,537‌

8,514,994‌

Liabilities

Accrued

management

and

investment

advisory

fees

........................................

732‌

7‌

4,908‌

Accrued

distribution

fees

....................................................................

91‌

–‌

431‌

Accrued

service

fees

........................................................................

–‌

2‌

Accrued

transfer

agent

fees

.................................................................

66‌

–‌

1,033‌

Accrued

chief

compliance

officer

fees

......................................................

–‌

1‌

Accrued

directors'

expenses

.................................................................

–‌

3‌

Accrued

professional

fees

...................................................................

23‌

20‌

32‌

Accrued

other

expenses

.....................................................................

32‌

1‌

150‌

Payables:

Fund

shares

redeemed

.................................................................

1,815‌

–‌

3,708‌

Investment

securities

purchased

......................................................

1,801‌

20‌

110‌

Variation

margin

on

futures

...........................................................

–‌

47‌

Collateral

obligation

on

securities

loaned,

at

value

.........................................

–‌

47,110‌

Total

Liabilities

4,560‌

48‌

57,535‌

Net

Assets

Applicable

to

Outstanding

Shares

............................................

$

1,112,758‌

$

11,489‌

$

8,457,459‌

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

...............................................

$

750,252‌

$

6,582‌

$

7,884,098‌

Total

distributable

earnings

(accumulated

loss)

.............................................

362,506‌

4,907‌

573,361‌

Total

Net

Assets

$

1,112,758‌

$

11,489‌

$

8,457,459‌

Statements

of

Assets

and

Liabilities

Principal

Funds,

Inc.

25

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Small-MidCap

Dividend

Income

Fund

Small-MidCap

Growth

Fund

Spectrum

Preferred

and

Capital

Securities

Income

Fund

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

............................................................................

1,700,000‌

100,000‌

2,500,000‌

Net

Asset

Value

Per

Share:

Class

A

:

Net

Assets

..........................................................................

$

148,411‌

N/A‌

$

971,310‌

Shares

Issued

and

Outstanding

........................................................

8,723‌

91,256‌

Net

Asset

Value

per

share

.............................................................

$

17

.01‌

(b)

$

10

.64‌

(b)

Maximum

Offering

Price

..............................................................

$

18

.00‌

$

11

.05‌

Class

C

:

Net

Assets

..........................................................................

$

69,017‌

N/A‌

$

256,799‌

Shares

Issued

and

Outstanding

........................................................

4,105‌

24,138‌

Net

Asset

Value

per

share

.............................................................

$

16

.81‌

(b)

$

10

.64‌

(b)

Class

J

:

Net

Assets

..........................................................................

N/A‌

$

42,288‌

Shares

Issued

and

Outstanding

........................................................

4,100‌

Net

Asset

Value

per

share

.............................................................

$

10

.32‌

(b)

Institutional

:

Net

Assets

.....................................................................

$

833,344‌

$

11,489‌

$

5,472,494‌

Shares

Issued

and

Outstanding

........................................................

48,692‌

600‌

518,268‌

Net

Asset

Value

per

share

.............................................................

$

17

.11‌

$

19

.16‌

$

10

.56‌

R-1

:

Net

Assets

..............................................................................

N/A‌

$

620‌

Shares

Issued

and

Outstanding

........................................................

59‌

Net

Asset

Value

per

share

.............................................................

$

10

.50‌

R-3

:

Net

Assets

..............................................................................

N/A‌

$

2,521‌

Shares

Issued

and

Outstanding

........................................................

241‌

Net

Asset

Value

per

share

.............................................................

$

10

.48‌

R-4

:

Net

Assets

..............................................................................

N/A‌

$

834‌

Shares

Issued

and

Outstanding

........................................................

80‌

Net

Asset

Value

per

share

.............................................................

$

10

.45‌

R-5

:

Net

Assets

..............................................................................

N/A‌

$

4,126‌

Shares

Issued

and

Outstanding

........................................................

393‌

Net

Asset

Value

per

share

.............................................................

$

10

.51‌

R-6

:

Net

Assets

..............................................................................

$

61,986‌

N/A‌

$

1,706,467‌

Shares

Issued

and

Outstanding

........................................................

3,604‌

161,681‌

Net

Asset

Value

per

share

.............................................................

$

17

.20‌

$

10

.55‌

(a)

Includes

fair

market

value

of

securities

loaned,

see

"Securities

Lending"

in

Notes

to

Financial

Statements.

(b)

Redemption

price

per

share

is

equal

to

net

asset

value

per

share

less

any

applicable

contingent

deferred

sales

charge.

Statements

of

Operations

Principal

Funds,

Inc.

Year

Ended

26

See

accompanying

notes.

Amounts

in

thousands

Blue

Chip

Fund

Bond

Market

Index

Fund

(a)

Diversified

Real

Asset

Fund

(b),(c)

Net

Investment

Income

(Loss)

Income:

Dividends

.........................................................................................

$

38,843‌

$

88‌

$

60,910‌

Withholding

tax

..................................................................................

(

1,242‌

)

–‌

(

3,798‌

)

Interest

............................................................................................

1‌

20,233‌

49,319‌

Securities

lending

-

net

...........................................................................

3‌

26‌

379‌

Total

Income

37,605‌

20,347‌

106,810‌

Expenses:

Management

and

investment

advisory

fees

......................................................

53,203‌

1,489‌

29,866‌

Distribution

f

ees

-

Class

A

.......................................................................

1,973‌

N/A‌

154‌

Distribution

f

ees

-

Class

C

.......................................................................

3,502‌

N/A‌

50‌

Distribution

f

ees

-

Class

J

........................................................................

260‌

60‌

N/A‌

Distribution

f

ees

-

R-1

...........................................................................

N/A‌

5‌

N/A‌

Distribution

f

ees

-

R-2

...........................................................................

N/A‌

11‌

N/A‌

Distribution

f

ees

-

R-3

...........................................................................

22‌

34‌

1‌

Distribution

f

ees

-

R-4

...........................................................................

6‌

5‌

–‌

Administrative

service

fees

-

R-1

................................................................

N/A‌

4‌

N/A‌

Administrative

service

fees

-

R-2

................................................................

N/A‌

7‌

N/A‌

Administrative

service

fees

-

R-3

................................................................

6‌

10‌

–‌

Administrative

service

fees

-

R-4

................................................................

2‌

–‌

Administrative

service

fees

-

R-5

................................................................

1‌

–‌

Registration

fees

-

Class

A

.......................................................................

83‌

N/A‌

29‌

Registration

fees

-

Class

C

.......................................................................

30‌

N/A‌

8‌

Registration

fees

-

Class

J

........................................................................

29‌

17‌

N/A‌

Registration

fees

-

Institutional

..................................................................

49‌

8‌

44‌

Registration

fees

-

R-6

...........................................................................

83‌

N/A‌

97‌

Service

fees

-

R-1

................................................................................

N/A‌

3‌

N/A‌

Service

fees

-

R-2

................................................................................

N/A‌

9‌

N/A‌

Service

fees

-

R-3

................................................................................

22‌

35‌

1‌

Service

fees

-

R-4

................................................................................

14‌

–‌

Service

fees

-

R-5

................................................................................

32‌

40‌

–‌

Shareholder

reports

-

Class

A

....................................................................

50‌

N/A‌

20‌

Shareholder

reports

-

Class

C

....................................................................

33‌

N/A‌

2‌

Shareholder

reports

-

Class

J

.....................................................................

15‌

5‌

N/A‌

Shareholder

reports

-

Institutional

...............................................................

175‌

5‌

170‌

Shareholder

reports

-

R-6

........................................................................

8‌

N/A‌

52‌

Transfer agent

fees

-

Class

A

.....................................................................

725‌

N/A‌

100‌

Transfer agent

fees

-

Class

C

.....................................................................

292‌

N/A‌

14‌

Transfer agent

fees

-

Class

J

.....................................................................

112‌

64‌

N/A‌

Transfer agent

fees

-

Institutional

................................................................

2,447‌

69‌

1,915‌

Chief

compliance

officer

expenses

...............................................................

8‌

1‌

3‌

Custodian

fees

....................................................................................

5‌

23‌

234‌

Directors'

expenses

...............................................................................

164‌

21‌

72‌

Professional fees

.................................................................................

20‌

34‌

148‌

Other

expenses

...................................................................................

136‌

11‌

48‌

Total

Gross

Expenses

63,507‌

1,987‌

33,028‌

Less: Reimbursement

from

Manager

............................................................

3,864‌

160‌

1,854‌

Less:

Reimbursement

from

Manager

-

Class

A

..................................................

–‌

N/A‌

37‌

Less:

Reimbursement

from

Manager

-

Class

C

..................................................

–‌

N/A‌

15‌

Less:

Reimbursement

from

Manager

-

Institutional

.............................................

–‌

813‌

Less:

Reimbursement

from

Manager

-

R-6

......................................................

–‌

N/A‌

36‌

Less:

Reimbursement

from

Distributor

-

Class

J

................................................

40‌

9‌

N/A‌

Total

Net

Expenses

59,603‌

1,818‌

30,273‌

Net

Investment

Income

(Loss)

(

21,998‌

)

18,529‌

76,537‌

Statements

of

Operations

Principal

Funds,

Inc.

Year

Ended

27

See

accompanying

notes.

Amounts

in

thousands

Blue

Chip

Fund

Bond

Market

Index

Fund

(a)

Diversified

Real

Asset

Fund

(b),(c)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments,

foreign

currencies,

futures,

options

and

swaptions

and

swap

agreements

Net

realized

gain

(loss)

from:

Investment

transactions

..........................................................................

792,123‌

111,727‌

217,317‌

Foreign

currency

.......................................................................

–‌

(

75‌

)

Foreign

currency

transactions

....................................................................

–‌

(

1,233‌

)

Futures

.................................................................................

–‌

61,211‌

Options

and

swaptions

...........................................................................

–‌

834‌

Swap

agreements

.................................................................................

–‌

87,358‌

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

.......................................................................................

1,780,646‌

(

135,202‌

)

300,548‌

Foreign

currency

.......................................................................

–‌

277‌

Futures

.................................................................................

–‌

(

6,594‌

)

Options

and

swaptions

...........................................................................

–‌

395‌

Swap

agreements

.................................................................................

–‌

(

3,178‌

)

Translation

of

assets

and

liabilities

in

foreign

currencies

........................................

–‌

(

120‌

)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments,

foreign

currencies,

futures,

options

and

swaptions

and

swap

agreements

2,572,769‌

(

23,475‌

)

656,740‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

2,550,771‌

$

(

4,946‌

)

$

733,277‌

(a)

Class

R-2

shares

discontinued

operations

and

converted

to

Class

R-3

shares

on

(b)

Consolidated

financial

statement;

see

"Basis

for

Consolidation"

in

Notes

to

Financial

Statements.

(c)

Class

C

shares

discontinued

operations

and

converted

to

Class

A

shares

on

Statements

of

Operations

Principal

Funds,

Inc.

Year

Ended

28

See

accompanying

notes.

Amounts

in

thousands

Edge

MidCap

Fund

Global

Multi-Strategy

Fund

(a),(b)

International

Equity

Index

Fund

(c)

Net

Investment

Income

(Loss)

Income:

Dividends

.........................................................................................

$

9,969‌

$

4,377‌

$

33,673‌

Withholding

tax

..................................................................................

(

11‌

)

(

245‌

)

(

2,709‌

)

Interest

............................................................................................

2‌

15,348‌

–‌

Securities

lending

-

net

...........................................................................

–‌

144‌

Total

Income

9,960‌

19,480‌

31,108‌

Expenses:

Management

and

investment

advisory

fees

......................................................

5,639‌

10,276‌

2,941‌

Distribution

f

ees

-

Class

A

.......................................................................

43‌

86‌

N/A‌

Distribution

f

ees

-

Class

C

.......................................................................

N/A‌

74‌

N/A‌

Distribution

f

ees

-

R-1

...........................................................................

N/A‌

2‌

Distribution

f

ees

-

R-2

...........................................................................

N/A‌

1‌

Distribution

f

ees

-

R-3

...........................................................................

N/A‌

40‌

Distribution

f

ees

-

R-4

...........................................................................

N/A‌

10‌

Administrative

service

fees

-

R-1

................................................................

N/A‌

1‌

Administrative

service

fees

-

R-2

................................................................

N/A‌

1‌

Administrative

service

fees

-

R-3

................................................................

N/A‌

11‌

Administrative

service

fees

-

R-4

................................................................

N/A‌

3‌

Administrative

service

fees

-

R-5

................................................................

N/A‌

2‌

Registration

fees

-

Class

A

.......................................................................

18‌

17‌

N/A‌

Registration

fees

-

Class

C

.......................................................................

N/A‌

4‌

N/A‌

Registration

fees

-

Institutional

..................................................................

24‌

22‌

15‌

Registration

fees

-

R-6

...........................................................................

19‌

18‌

24‌

Service

fees

-

R-1

................................................................................

N/A‌

1‌

Service

fees

-

R-2

................................................................................

N/A‌

1‌

Service

fees

-

R-3

................................................................................

N/A‌

40‌

Service

fees

-

R-4

................................................................................

N/A‌

25‌

Service

fees

-

R-5

................................................................................

N/A‌

44‌

Shareholder

reports

-

Class

A

....................................................................

3‌

13‌

N/A‌

Shareholder

reports

-

Class

C

....................................................................

N/A‌

2‌

N/A‌

Shareholder

reports

-

Institutional

...............................................................

10‌

169‌

7‌

Shareholder

reports

-

R-6

........................................................................

3‌

2‌

1‌

Transfer agent

fees

-

Class

A

.....................................................................

32‌

51‌

N/A‌

Transfer agent

fees

-

Class

C

.....................................................................

N/A‌

14‌

N/A‌

Transfer agent

fees

-

Institutional

................................................................

106‌

370‌

33‌

Chief

compliance

officer

expenses

...............................................................

1‌

Custodian

fees

....................................................................................

4‌

205‌

246‌

Directors'

expenses

...............................................................................

15‌

25‌

Dividends

and

interest

on

securities

sold

short

..................................................

–‌

1,981‌

–‌

Index

license

fees

................................................................................

–‌

330‌

Professional fees

.................................................................................

20‌

212‌

85‌

Short

sale

fees

....................................................................................

–‌

1,174‌

–‌

Other

expenses

...................................................................................

17‌

35‌

16‌

Reverse

repurchase

agreement

interest

expense

.................................................

–‌

174‌

–‌

Total

Gross

Expenses

5,954‌

14,915‌

3,906‌

Less: Reimbursement

from

Manager

............................................................

407‌

258‌

–‌

Less:

Reimbursement

from

Manager

-

Class

A

..................................................

20‌

–‌

N/A‌

Less:

Reimbursement

from

Manager

-

Class

C

..................................................

N/A‌

12‌

N/A‌

Less:

Reimbursement

from

Manager

-

Institutional

.............................................

20‌

525‌

55‌

Less:

Reimbursement

from

Manager

-

R-6

......................................................

–‌

105‌

233‌

Total

Net

Expenses

5,507‌

14,015‌

3,618‌

Net

Investment

Income

(Loss)

4,453‌

5,465‌

27,490‌

Statements

of

Operations

Principal

Funds,

Inc.

Year

Ended

29

See

accompanying

notes.

Amounts

in

thousands

Edge

MidCap

Fund

Global

Multi-Strategy

Fund

(a),(b)

International

Equity

Index

Fund

(c)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments,

foreign

currencies,

futures,

options

and

swaptions,

short

sales

and

swap

agreements

Net

realized

gain

(loss)

from:

Investment

transactions

..........................................................................

182,752‌

107,475‌

36,546‌

Foreign

currency

.......................................................................

–‌

(

5,149‌

)

–‌

Foreign

currency

transactions

....................................................................

6‌

892‌

83‌

Futures

.................................................................................

–‌

(

11,725‌

)

732‌

Options

and

swaptions

...........................................................................

–‌

1,744‌

–‌

Short

sales

........................................................................................

–‌

(

41,118‌

)

–‌

Swap

agreements

.................................................................................

–‌

(

5,526‌

)

–‌

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

.......................................................................................

66,616‌

(

12,076‌

)

206,389‌

Foreign

currency

.......................................................................

–‌

374‌

–‌

Futures

.................................................................................

–‌

5,299‌

(

168‌

)

Options

and

swaptions

...........................................................................

–‌

104‌

–‌

Short

sales

........................................................................................

–‌

10,462‌

–‌

Swap

agreements

.................................................................................

–‌

2,460‌

–‌

Translation

of

assets

and

liabilities

in

foreign

currencies

........................................

(

1‌

)

(

42‌

)

(

199‌

)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments,

foreign

currencies,

futures,

options

and

swaptions,

short

sales

and

swap

agreements

249,373‌

53,174‌

243,383‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

253,826‌

$

58,639‌

$

270,873‌

(a)

Consolidated

financial

statement;

see

"Basis

for

Consolidation"

in

Notes

to

Financial

Statements.

(b)

Class

C

shares

discontinued

operations

and

converted

to

Class

A

shares

on

(c)

Class

R-2

shares

discontinued

operations

and

converted

to

Class

R-3

shares

on

Statements

of

Operations

Principal

Funds,

Inc.

Year

Ended

30

See

accompanying

notes.

Amounts

in

thousands

International

Small

Company

Fund

(a)

Opportunistic

Municipal

Fund

Origin

Emerging

Markets

Fund

Net

Investment

Income

(Loss)

Income:

Dividends

.........................................................................................

$

25,740‌

$

18‌

$

91,114‌

Withholding

tax

..................................................................................

(2,497‌)

–‌

(11,883‌)

Interest

............................................................................................

1‌

6,055‌

1‌

Securities

lending

-

net

...........................................................................

335‌

–‌

378‌

Total

Income

23,579‌

6,073‌

79,610‌

Expenses:

Management

and

investment

advisory

fees

......................................................

11,220‌

735‌

31,024‌

Distribution

fees

-

Class

A

.......................................................................

5‌

134‌

18‌

Registration

fees

-

Class

A

.......................................................................

5‌

21‌

19‌

Registration

fees

-

Institutional

..................................................................

20‌

27‌

Registration

fees

-

R-6

...........................................................................

19‌

N/A‌

26‌

Shareholder

reports

-

Class

A

....................................................................

1‌

4‌

Shareholder

reports

-

Institutional

...............................................................

9‌

2‌

29‌

Shareholder

reports

-

R-6

........................................................................

1‌

N/A‌

1‌

Transfer agent

fees

-

Class

A

.....................................................................

10‌

44‌

20‌

Transfer agent

fees

-

Institutional

................................................................

64‌

90‌

104‌

Chief

compliance

officer

expenses

...............................................................

1‌

–‌

3‌

Custodian

fees

....................................................................................

318‌

2‌

828‌

Directors'

expenses

...............................................................................

22‌

5‌

62‌

Interest

expense

and

fees

.........................................................................

–‌

60‌

–‌

Professional fees

.................................................................................

48‌

43‌

46‌

Other

expenses

...................................................................................

23‌

3‌

66‌

Total

Gross

Expenses

11,766‌

1,160‌

32,277‌

Less: Reimbursement

from

Manager

............................................................

–‌

88‌

–‌

Less:

Reimbursement

from

Manager

-

Class

A

..................................................

10‌

6‌

21‌

Less:

Reimbursement

from

Manager

-

Institutional

.............................................

–‌

32‌

–‌

Less:

Reimbursement

from

Manager

-

R-6

......................................................

3‌

N/A‌

–‌

Total

Net

Expenses

11,753‌

1,034‌

32,256‌

Net

Investment

Income

(Loss)

11,826‌

5,039‌

47,354‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

foreign

currencies

Net

realized

gain

(loss)

from:

Investment

transactions

..........................................................................

115,728‌

1,160‌

149,763‌

Foreign

currency

transactions

....................................................................

(643‌)

–‌

(7,440‌)

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

(net

of

foreign

taxes

of

$0,

$0

and

$7,413

,

respectively)

...........................

142,219‌

8,370‌

33,112‌

Translation

of

assets

and

liabilities

in

foreign

currencies

........................................

(68‌)

–‌

48‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

and

foreign

currencies

257,236‌

9,530‌

175,483‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

269,062‌

$

14,569‌

$

222,837‌

(a)

Class

A

shares

discontinued

operations

on

2021.

Statements

of

Operations

Principal

Funds,

Inc.

Year

Ended

32

See

accompanying

notes.

Amounts

in

thousands

Small-MidCap

Dividend

Income

Fund

Small-MidCap

Growth

Fund

Spectrum

Preferred

and

Capital

Securities

Income

Fund

(a)

Net

Investment

Income

(Loss)

Income:

Dividends

....................................................................................

$

25,876‌

$

51‌

$

52,470‌

Withholding

tax

.............................................................................

(121‌)

–‌

Interest

.......................................................................................

1‌

–‌

321,881‌

Securities

lending

-

net

......................................................................

1‌

2‌

446‌

Total

Income

25,757‌

53‌

374,797‌

Expenses:

Management

and

investment

advisory

fees

.................................................

10,676‌

73‌

55,300‌

Distribution

fees

-

Class

A

..................................................................

315‌

N/A‌

2,243‌

Distribution

fees

-

Class

C

..................................................................

735‌

N/A‌

3,198‌

Distribution

fees

-

Class

J

...................................................................

N/A‌

63‌

Distribution

fees

-

R-1

......................................................................

N/A‌

2‌

Distribution

fees

-

R-2

......................................................................

N/A‌

2‌

Distribution

fees

-

R-3

......................................................................

N/A‌

6‌

Distribution

fees

-

R-4

......................................................................

N/A‌

1‌

Administrative

service

fees

-

R-1

...........................................................

N/A‌

2‌

Administrative

service

fees

-

R-2

...........................................................

N/A‌

2‌

Administrative

service

fees

-

R-3

...........................................................

N/A‌

1‌

Registration

fees

-

Class

A

..................................................................

22‌

N/A‌

47‌

Registration

fees

-

Class

C

..................................................................

17‌

N/A‌

24‌

Registration

fees

-

Class

J

...................................................................

N/A‌

13‌

Registration

fees

-

Institutional

.............................................................

49‌

20‌

39‌

Registration

fees

-

R-6

......................................................................

18‌

N/A‌

16‌

Service

fees

-

R-1

...........................................................................

N/A‌

2‌

Service

fees

-

R-2

...........................................................................

N/A‌

2‌

Service

fees

-

R-3

...........................................................................

N/A‌

5‌

Service

fees

-

R-4

...........................................................................

N/A‌

2‌

Service

fees

-

R-5

...........................................................................

N/A‌

10‌

Shareholder

reports

-

Class

A

...............................................................

15‌

N/A‌

49‌

Shareholder

reports

-

Class

C

...............................................................

13‌

N/A‌

31‌

Shareholder

reports

-

Class

J

................................................................

N/A‌

6‌

Shareholder

reports

-

Institutional

..........................................................

102‌

1‌

298‌

Shareholder

reports

-

R-6

...................................................................

1‌

N/A‌

5‌

Transfer agent

fees

-

Class

A

................................................................

158‌

N/A‌

784‌

Transfer agent

fees

-

Class

C

................................................................

87‌

N/A‌

270‌

Transfer agent

fees

-

Class

J

................................................................

N/A‌

55‌

Transfer agent

fees

-

Institutional

...........................................................

1,292‌

1‌

4,862‌

Chief

compliance

officer

expenses

..........................................................

1‌

–‌

7‌

Custodian

fees

...............................................................................

7‌

3‌

67‌

Directors'

expenses

..........................................................................

27‌

3‌

140‌

Professional fees

............................................................................

20‌

24‌

30‌

Other

expenses

..............................................................................

19‌

1‌

112‌

Total

Gross

Expenses

13,574‌

126‌

67,696‌

Less:

Reimbursement

from

Manager

-

Class

A

.............................................

78‌

N/A‌

–‌

Less:

Reimbursement

from

Manager

-

Class

C

.............................................

46‌

N/A‌

–‌

Less:

Reimbursement

from

Manager

-

Institutional

........................................

568‌

38‌

–‌

Less:

Reimbursement

from

Manager

-

R-6

.................................................

16‌

N/A‌

–‌

Less:

Reimbursement

from

Distributor

-

Class

J

...........................................

N/A‌

10‌

Total

Net

Expenses

12,866‌

88‌

67,686‌

Net

Investment

Income

(Loss)

12,891‌

(35‌)

307,111‌

Statements

of

Operations

Principal

Funds,

Inc.

Year

Ended

33

See

accompanying

notes.

Amounts

in

thousands

Small-MidCap

Dividend

Income

Fund

Small-MidCap

Growth

Fund

Spectrum

Preferred

and

Capital

Securities

Income

Fund

(a)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments,

foreign

currencies,

futures

and

options

and

swaptions

Net

realized

gain

(loss)

from:

Investment

transactions

.....................................................................

250,732‌

3,371‌

58,508‌

Foreign

currency

transactions

...............................................................

46‌

–‌

Futures

............................................................................

–‌

(5,919‌)

Options

and

swaptions

......................................................................

–‌

7,746‌

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

..................................................................................

320,555‌

183‌

216,512‌

Futures

............................................................................

–‌

(303‌)

Options

and

swaptions

......................................................................

–‌

(678‌)

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments,

foreign

currencies,

futures

and

options

and

swaptions

571,333‌

3,554‌

275,866‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

584,224‌

$

3,519‌

$

582,977‌

(a)

Class

R-2

shares

discontinued

operations

and

converted

to

Class

R-3

shares

on

Statement

of

Changes

in

Net

Assets

Principal

Funds,

Inc.

34

See

accompanying

notes.

Amounts

in

thousands

Blue

Chip

Fund

Year

Ended

Year

Ended

Operations

Net

investment

income

(loss)

.......................................................................................................

$

(

21,998‌

)

$

1,204‌

Net

realized

gain

(loss)

on

investments

.............................................................................................

792,123‌

316,866‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

..............................................................

1,780,646‌

1,825,862‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

2,550,771‌

2,143,932‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

................................................................

(

273,239‌

)

(

218,915‌

)

Total

Dividends

and

Distributions

(

273,239‌

)

(

218,915‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

...............................................................................

947,341‌

1,577,913‌

Total

Increase

(Decrease)

in

Net

Assets

3,224,873‌

3,502,930‌

Net

Assets

Beginning

of

period

.................................................................................................................

7,837,554‌

4,334,624‌

End

of

period

.......................................................................................................................

$

11,062,427‌

$

7,837,554‌

Class

A

Class

C

Class

J

Institutional

R-3

R-4

R-5

R-6

Capital

Share

Transactions:

Year

Ended

Dollars:

Sold

..........................

$

460,034‌

$

75,366‌

$

78,501‌

$

1,226,526‌

$

3,604‌

$

1,377‌

$

2,885‌

$

1,314,347‌

Reinvested

.....................

22,003‌

11,315‌

5,294‌

87,710‌

275‌

181‌

425‌

138,915‌

Redeemed

......................

(

208,606‌

)

(

79,458‌

)

(

58,408‌

)

(

1,466,536‌

)

(

3,576‌

)

(

2,411‌

)

(

6,008‌

)

(

656,414‌

)

Net

Increase

(Decrease)

............

$

273,431‌

$

7,223‌

$

25,387‌

$

(

152,300‌

)

$

303‌

$

(

853‌

)

$

(

2,698‌

)

$

796,848‌

Shares:

Sold

..........................

12,444‌

2,265‌

2,163‌

33,988‌

100‌

39‌

79‌

37,295‌

Reinvested

.....................

666‌

363‌

158‌

2,603‌

9‌

5‌

13‌

4,112‌

Redeemed

......................

(

5,823‌

)

(

2,377‌

)

(

1,658‌

)

(

40,934‌

)

(

104‌

)

(

67‌

)

(

157‌

)

(

18,165‌

)

Net

Increase

(Decrease)

............

7,287‌

251‌

663‌

(

4,343‌

)

5‌

(

23‌

)

(

65‌

)

23,242‌

Year

Ended

Dollars:

Sold

..........................

$

330,206‌

$

123,814‌

$

80,027‌

$

1,979,502‌

$

3,089‌

$

1,473‌

$

6,893‌

$

765,698‌

Reinvested

.....................

15,360‌

8,054‌

3,750‌

42,915‌

259‌

187‌

298‌

144,416‌

Redeemed

......................

(

153,829‌

)

(

40,458‌

)

(

45,104‌

)

(

755,174‌

)

(

2,485‌

)

(

1,782‌

)

(

4,409‌

)

(

924,787‌

)

Net

Increase

(Decrease)

............

$

191,737‌

$

91,410‌

$

38,673‌

$

1,267,243‌

$

863‌

$

(

122‌

)

$

2,782‌

$

(

14,673‌

)

Shares:

Sold

..........................

12,395‌

4,890‌

2,934‌

74,141‌

115‌

56‌

254‌

27,502‌

Reinvested

.....................

601‌

332‌

145‌

1,644‌

10‌

7‌

12‌

5,521‌

Redeemed

......................

(

5,751‌

)

(

1,583‌

)

(

1,704‌

)

(

27,142‌

)

(

97‌

)

(

66‌

)

(

161‌

)

(

32,947‌

)

Net

Increase

(Decrease)

............

7,245‌

3,639‌

1,375‌

48,643‌

28‌

(

2‌

)

105‌

76‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

From

net

investment

income

and

net

realized

gain

on

investments

.........

$

(

22,518‌

)

$

(

11,763‌

)

$

(

5,295‌

)

$

(

91,882‌

)

$

(

275‌

)

$

(

181‌

)

$

(

425‌

)

$

(

140,900‌

)

Total

Dividends

and

Distributions

$

(

22,518‌

)

$

(

11,763‌

)

$

(

5,295‌

)

$

(

91,882‌

)

$

(

275‌

)

$

(

181‌

)

$

(

425‌

)

$

(

140,900‌

)

Year

Ended

From

net

investment

income

and

net

realized

gain

on

investments

.........

$

(

15,698‌

)

$

(

8,184‌

)

$

(

3,753‌

)

$

(

44,715‌

)

$

(

259‌

)

$

(

187‌

)

$

(

298‌

)

$

(

145,821‌

)

Total

Dividends

and

Distributions

$

(

15,698‌

)

$

(

8,184‌

)

$

(

3,753‌

)

$

(

44,715‌

)

$

(

259‌

)

$

(

187‌

)

$

(

298‌

)

$

(

145,821‌

)

Statement

of

Changes

in

Net

Assets

Principal

Funds,

Inc.

35

See

accompanying

notes.

Amounts

in

thousands

Bond

Market

Index

Fund

Year

Ended

Year

Ended

Operations

Net

investment

income

(loss)

.......................................................................................................

$

18,529‌

$

54,211‌

Net

realized

gain

(loss)

on

investments

.............................................................................................

111,727‌

28,601‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

..............................................................

(

135,202‌

)

66,873‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

(

4,946‌

)

149,685‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

................................................................

(

131,463‌

)

(

58,976‌

)

Total

Dividends

and

Distributions

(

131,463‌

)

(

58,976‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

...............................................................................

(

1,346,178‌

)

166,948‌

Total

Increase

(Decrease)

in

Net

Assets

(

1,482,587‌

)

257,657‌

Net

Assets

Beginning

of

period

.................................................................................................................

2,380,942‌

2,123,285‌

End

of

period

.......................................................................................................................

$

898,355‌

$

2,380,942‌

Class

J

Institutional

R-1

R-2

R-3

R-4

R-5

Capital

Share

Transactions:

Year

Ended

(a)

Dollars:

Sold

.....................................

$

10,051‌

$

289,179‌

$

347‌

$

1,364‌

$

10,337‌

$

1,747‌

$

4,011‌

Reinvested

................................

7,097‌

116,860‌

240‌

1,145‌

2,125‌

1,081‌

2,898‌

Redeemed

.................................

(

17,675‌

)

(

1,743,935‌

)

(

589‌

)

(

8,521‌

)

(

12,193‌

)

(

4,107‌

)

(

7,640‌

)

Net

Increase

(Decrease)

.......................

$

(

527‌

)

$

(

1,337,896‌

)

$

(

2‌

)

$

(

6,012‌

)

$

269‌

$

(

1,279‌

)

$

(

731‌

)

Shares:

Sold

.....................................

935‌

27,388‌

32‌

125‌

1,039‌

162‌

390‌

Reinvested

................................

687‌

11,062‌

23‌

111‌

206‌

104‌

279‌

Redeemed

.................................

(

1,703‌

)

(

146,690‌

)

(

58‌

)

(

858‌

)

(

1,224‌

)

(

404‌

)

(

745‌

)

Net

Increase

(Decrease)

.......................

(

81‌

)

(

108,240‌

)

(

3‌

)

(

622‌

)

21‌

(

138‌

)

(

76‌

)

Year

Ended

Dollars:

Sold

.....................................

$

30,747‌

$

811,248‌

$

899‌

$

5,634‌

$

8,353‌

$

4,688‌

$

11,807‌

Reinvested

................................

554‌

57,723‌

10‌

67‌

178‌

101‌

343‌

Redeemed

.................................

(

17,645‌

)

(

722,611‌

)

(

696‌

)

(

2,117‌

)

(

7,211‌

)

(

4,014‌

)

(

11,110‌

)

Net

Increase

(Decrease)

.......................

$

13,656‌

$

146,360‌

$

213‌

$

3,584‌

$

1,320‌

$

775‌

$

1,040‌

Shares:

Sold

.....................................

2,679‌

69,730‌

77‌

489‌

731‌

406‌

1,020‌

Reinvested

................................

50‌

5,126‌

1‌

6‌

16‌

9‌

31‌

Redeemed

.................................

(

1,536‌

)

(

61,846‌

)

(

62‌

)

(

185‌

)

(

625‌

)

(

351‌

)

(

958‌

)

Net

Increase

(Decrease)

.......................

1,193‌

13,010‌

16‌

310‌

122‌

64‌

93‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

(a)

From

net

investment

income

and

net

realized

gain

on

investments

................................

$

(

7,114‌

)

$

(

116,860‌

)

$

(

240‌

)

$

(

1,145‌

)

$

(

2,125‌

)

$

(

1,081‌

)

$

(

2,898‌

)

Total

Dividends

and

Distributions

$

(

7,114‌

)

$

(

116,860‌

)

$

(

240‌

)

$

(

1,145‌

)

$

(

2,125‌

)

$

(

1,081‌

)

$

(

2,898‌

)

Year

Ended

From

net

investment

income

and

net

realized

gain

on

investments

................................

$

(

554‌

)

$

(

57,723‌

)

$

(

10‌

)

$

(

67‌

)

$

(

178‌

)

$

(

101‌

)

$

(

343‌

)

Total

Dividends

and

Distributions

$

(

554‌

)

$

(

57,723‌

)

$

(

10‌

)

$

(

67‌

)

$

(

178‌

)

$

(

101‌

)

$

(

343‌

)

(a)

Class

R-2

shares

discontinued

operations

and

converted

to

Class

R-3

shares

on

Statement

of

Changes

in

Net

Assets

Principal

Funds,

Inc.

36

See

accompanying

notes.

Amounts

in

thousands

Diversified

Real

Asset

Fund

(a)

Year

Ended

Year

Ended

Operations

Net

investment

income

(loss)

.......................................................................................................

$

76,537‌

$

69,874‌

Net

realized

gain

(loss)

on

investments

,

foreign

currencies

,

futures

,

options

and

swaptions

and

swap

agreements

...............

365,412‌

(

118,031‌

)

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

,

foreign

currencies

,

futures

,

options

and

swaptions

and

swap

agreements

..............................................................................................................

291,328‌

51,404‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

733,277‌

3,247‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

................................................................

(

17,546‌

)

(

96,919‌

)

Total

Dividends

and

Distributions

(

17,546‌

)

(

96,919‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

...............................................................................

490,194‌

(

518,671‌

)

Total

Increase

(Decrease)

in

Net

Assets

1,205,925‌

(

612,343‌

)

Net

Assets

Beginning

of

period

.................................................................................................................

3,177,928‌

3,790,271‌

End

of

period

.......................................................................................................................

$

4,383,853‌

$

3,177,928‌

Class

A

Class

C

Institutional

R-3

R-4

R-5

R-6

Capital

Share

Transactions:

Year

Ended

(b)

Dollars:

Sold

.....................................

$

42,836‌

$

126‌

$

541,536‌

$

47‌

$

–‌

$

58‌

$

1,103,343‌

Reinvested

................................

83‌

–‌

10,673‌

–‌

6,294‌

Redeemed

.................................

(

13,633‌

)

(

12,365‌

)

(

857,950‌

)

–‌

(

60‌

)

(

330,794‌

)

Net

Increase

(Decrease)

.......................

$

29,286‌

$

(

12,239‌

)

$

(

305,741‌

)

$

47‌

$

–‌

$

(

2‌

)

$

778,843‌

Shares:

Sold

.....................................

3,383‌

11‌

43,438‌

4‌

–‌

5‌

86,468‌

Reinvested

................................

7‌

–‌

892‌

–‌

526‌

Redeemed

.................................

(

1,090‌

)

(

1,021‌

)

(

66,250‌

)

–‌

(

5‌

)

(

27,849‌

)

Net

Increase

(Decrease)

.......................

2,300‌

(

1,010‌

)

(

21,920‌

)

4‌

–‌

59,145‌

Year

Ended

Dollars:

Sold

.....................................

$

9,246‌

$

478‌

$

581,088‌

$

37‌

$

–‌

$

25‌

$

293,360‌

Reinvested

................................

940‌

143‌

59,146‌

3‌

–‌

2‌

34,843‌

Redeemed

.................................

(

20,412‌

)

(

5,378‌

)

(

995,309‌

)

(

11‌

)

–‌

(

66‌

)

(

476,806‌

)

Net

Increase

(Decrease)

.......................

$

(

10,226‌

)

$

(

4,757‌

)

$

(

355,075‌

)

$

29‌

$

–‌

$

(

39‌

)

$

(

148,603‌

)

Shares:

Sold

.....................................

856‌

44‌

52,290‌

4‌

–‌

2‌

26,766‌

Reinvested

................................

81‌

12‌

5,077‌

–‌

2,991‌

Redeemed

.................................

(

1,918‌

)

(

504‌

)

(

93,511‌

)

(

1‌

)

–‌

(

6‌

)

(

43,586‌

)

Net

Increase

(Decrease)

.......................

(

981‌

)

(

448‌

)

(

36,144‌

)

3‌

–‌

(

4‌

)

(

13,829‌

)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

(b)

From

net

investment

income

and

net

realized

gain

on

investments

................................

$

(

88‌

)

$

–‌

$

(

11,011‌

)

$

–‌

$

–‌

$

–‌

$

(

6,447‌

)

Total

Dividends

and

Distributions

$

(

88‌

)

$

–‌

$

(

11,011‌

)

$

–‌

$

–‌

$

–‌

$

(

6,447‌

)

Year

Ended

From

net

investment

income

and

net

realized

gain

on

investments

................................

$

(

961‌

)

$

(

162‌

)

$

(

60,790‌

)

$

(

3‌

)

$

–‌

$

(

2‌

)

$

(

35,001‌

)

Total

Dividends

and

Distributions

$

(

961‌

)

$

(

162‌

)

$

(

60,790‌

)

$

(

3‌

)

$

–‌

$

(

2‌

)

$

(

35,001‌

)

(a)

Consolidated

financial

statement;

see

"Basis

for

Consolidation"

in

Notes

to

Financial

Statements.

(b)

Class

C

shares

discontinued

operations

and

converted

to

Class

A

shares

on

Statement

of

Changes

in

Net

Assets

Principal

Funds,

Inc.

37

See

accompanying

notes.

Amounts

in

thousands

Edge

MidCap

Fund

Year

Ended

Year

Ended

Operations

Net

investment

income

(loss)

.......................................................................................................

$

4,453‌

$

6,243‌

Net

realized

gain

(loss)

on

investments

and

foreign

currencies

....................................................................

182,758‌

46,455‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

foreign

currencies

......................................

66,615‌

6,587‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

253,826‌

59,285‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

................................................................

(

47,266‌

)

(

29,654‌

)

Total

Dividends

and

Distributions

(

47,266‌

)

(

29,654‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

...............................................................................

(

474,522‌

)

129,393‌

Total

Increase

(Decrease)

in

Net

Assets

(

267,962‌

)

159,024‌

Net

Assets

Beginning

of

period

.................................................................................................................

852,960‌

693,936‌

End

of

period

.......................................................................................................................

$

584,998‌

$

852,960‌

Class

A

Institutional

R-6

Capital

Share

Transactions:

Year

Ended

Dollars:

Sold

..................................................................................

$

10,882‌

$

33,248‌

$

43,898‌

Reinvested

.............................................................................

711‌

4,807‌

40,574‌

Redeemed

..............................................................................

(

6,730‌

)

(

30,514‌

)

(

571,398‌

)

Net

Increase

(Decrease)

....................................................................

$

4,863‌

$

7,541‌

$

(

486,926‌

)

Shares:

Sold

..................................................................................

646‌

1,972‌

2,572‌

Reinvested

.............................................................................

44‌

295‌

2,479‌

Redeemed

..............................................................................

(

399‌

)

(

1,785‌

)

(

31,985‌

)

Net

Increase

(Decrease)

....................................................................

291‌

482‌

(

26,934‌

)

Year

Ended

Dollars:

Sold

..................................................................................

$

9,975‌

$

66,971‌

$

133,178‌

Reinvested

.............................................................................

364‌

1,564‌

27,287‌

Redeemed

..............................................................................

(

3,584‌

)

(

29,934‌

)

(

76,428‌

)

Net

Increase

(Decrease)

....................................................................

$

6,755‌

$

38,601‌

$

84,037‌

Shares:

Sold

..................................................................................

699‌

5,413‌

9,273‌

Reinvested

.............................................................................

24‌

101‌

1,759‌

Redeemed

..............................................................................

(

261‌

)

(

2,354‌

)

(

5,303‌

)

Net

Increase

(Decrease)

....................................................................

462‌

3,160‌

5,729‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

From

net

investment

income

and

net

realized

gain

on

investments

......................................

$

(

715‌

)

$

(

4,877‌

)

$

(

41,674‌

)

Total

Dividends

and

Distributions

$

(

715‌

)

$

(

4,877‌

)

$

(

41,674‌

)

Year

Ended

From

net

investment

income

and

net

realized

gain

on

investments

......................................

$

(

364‌

)

$

(

1,569‌

)

$

(

27,721‌

)

Total

Dividends

and

Distributions

$

(

364‌

)

$

(

1,569‌

)

$

(

27,721‌

)

Statement

of

Changes

in

Net

Assets

Principal

Funds,

Inc.

38

See

accompanying

notes.

Amounts

in

thousands

Global

Multi-Strategy

Fund

(a)

Year

Ended

Year

Ended

Operations

Net

investment

income

(loss)

.......................................................................................................

$

5,465‌

$

19,216‌

Net

realized

gain

(loss)

on

investments

,

foreign

currencies

,

futures

,

options

and

swaptions

,

short

sales

and

swap

agreements

...

46,593‌

(

21,381‌

)

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

,

foreign

currencies

,

futures

,

options

and

swaptions

,

short

sales

and

swap

agreements

....................................................................................................

6,581‌

20,941‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

58,639‌

18,776‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

................................................................

(

12,889‌

)

–‌

Total

Dividends

and

Distributions

(

12,889‌

)

–‌

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

...............................................................................

(

283,471‌

)

(

556,309‌

)

Total

Increase

(Decrease)

in

Net

Assets

(

237,721‌

)

(

537,533‌

)

Net

Assets

Beginning

of

period

.................................................................................................................

801,423‌

1,338,956‌

End

of

period

.......................................................................................................................

$

563,702‌

$

801,423‌

Class

A

Class

C

Institutional

R-6

Capital

Share

Transactions:

Year

Ended

(b)

Dollars:

Sold

.......................................................................

$

17,733‌

$

162‌

$

83,371‌

$

27,567‌

Reinvested

..................................................................

267‌

50‌

8,856‌

289‌

Redeemed

...................................................................

(

8,032‌

)

(

17,483‌

)

(

362,608‌

)

(

33,643‌

)

Net

Increase

(Decrease)

.........................................................

$

9,968‌

$

(

17,271‌

)

$

(

270,381‌

)

$

(

5,787‌

)

Shares:

Sold

.......................................................................

1,563‌

15‌

7,245‌

2,382‌

Reinvested

..................................................................

24‌

5‌

781‌

25‌

Redeemed

...................................................................

(

705‌

)

(

1,596‌

)

(

31,841‌

)

(

2,916‌

)

Net

Increase

(Decrease)

.........................................................

882‌

(

1,576‌

)

(

23,815‌

)

(

509‌

)

Year

Ended

Dollars:

Sold

.......................................................................

$

6,523‌

$

828‌

$

341,435‌

$

32,821‌

Redeemed

...................................................................

(

21,346‌

)

(

11,049‌

)

(

218,027‌

)

(

687,494‌

)

Net

Increase

(Decrease)

.........................................................

$

(

14,823‌

)

$

(

10,221‌

)

$

123,408‌

$

(

654,673‌

)

Shares:

Sold

.......................................................................

615‌

81‌

31,837‌

3,070‌

Redeemed

...................................................................

(

2,005‌

)

(

1,084‌

)

(

20,773‌

)

(

64,199‌

)

Net

Increase

(Decrease)

.........................................................

(

1,390‌

)

(

1,003‌

)

11,064‌

(

61,129‌

)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

(b)

From

net

investment

income

and

net

realized

gain

on

investments

...........................

$

(

334‌

)

$

(

52‌

)

$

(

9,671‌

)

$

(

2,832‌

)

Total

Dividends

and

Distributions

$

(

334‌

)

$

(

52‌

)

$

(

9,671‌

)

$

(

2,832‌

)

Year

Ended

From

net

investment

income

and

net

realized

gain

on

investments

...........................

$

–‌

$

–‌

$

–‌

$

–‌

Total

Dividends

and

Distributions

$

–‌

$

–‌

$

–‌

$

–‌

(a)

Consolidated

financial

statement;

see

"Basis

for

Consolidation"

in

Notes

to

Financial

Statements.

(b)

Class

C

shares

discontinued

operations

and

converted

to

Class

A

shares

on

Statement

of

Changes

in

Net

Assets

Principal

Funds,

Inc.

39

See

accompanying

notes.

Amounts

in

thousands

International

Equity

Index

Fund

Year

Ended

Year

Ended

Operations

Net

investment

income

(loss)

.......................................................................................................

$

27,490‌

$

24,091‌

Net

realized

gain

(loss)

on

investments

,

foreign

currencies

and

futures

............................................................

37,361‌

9,387‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

,

foreign

currencies

and

futures

.............................

206,022‌

37,323‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

270,873‌

70,801‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

................................................................

(

27,015‌

)

(

38,129‌

)

Total

Dividends

and

Distributions

(

27,015‌

)

(

38,129‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

...............................................................................

(

93,651‌

)

(

30,816‌

)

Total

Increase

(Decrease)

in

Net

Assets

150,207‌

1,856‌

Net

Assets

Beginning

of

period

.................................................................................................................

1,097,873‌

1,096,017‌

End

of

period

.......................................................................................................................

$

1,248,080‌

$

1,097,873‌

Institutional

R-1

R-2

R-3

R-4

R-5

R-6

Capital

Share

Transactions:

Year

Ended

(a)

Dollars:

Sold

.....................................

$

17,412‌

$

65‌

$

74‌

$

3,835‌

$

3,567‌

$

5,772‌

$

106,980‌

Reinvested

................................

950‌

7‌

8‌

315‌

203‌

338‌

25,194‌

Redeemed

.................................

(

12,893‌

)

(

173‌

)

(

697‌

)

(

6,479‌

)

(

4,343‌

)

(

7,123‌

)

(

226,663‌

)

Net

Increase

(Decrease)

.......................

$

5,469‌

$

(

101‌

)

$

(

615‌

)

$

(

2,329‌

)

$

(

573‌

)

$

(

1,013‌

)

$

(

94,489‌

)

Shares:

Sold

.....................................

1,536‌

6‌

7‌

343‌

314‌

506‌

9,319‌

Reinvested

................................

85‌

1‌

–‌

29‌

18‌

31‌

2,253‌

Redeemed

.................................

(

1,125‌

)

(

16‌

)

(

62‌

)

(

589‌

)

(

381‌

)

(

626‌

)

(

20,079‌

)

Net

Increase

(Decrease)

.......................

496‌

(

9‌

)

(

55‌

)

(

217‌

)

(

49‌

)

(

89‌

)

(

8,507‌

)

Year

Ended

Dollars:

Sold

.....................................

$

18,406‌

$

70‌

$

205‌

$

4,152‌

$

4,754‌

$

4,511‌

$

174,561‌

Reinvested

................................

1,572‌

12‌

13‌

491‌

260‌

578‌

35,203‌

Redeemed

.................................

(

35,453‌

)

(

197‌

)

(

437‌

)

(

5,721‌

)

(

3,694‌

)

(

6,174‌

)

(

223,928‌

)

Net

Increase

(Decrease)

.......................

$

(

15,475‌

)

$

(

115‌

)

$

(

219‌

)

$

(

1,078‌

)

$

1,320‌

$

(

1,085‌

)

$

(

14,164‌

)

Shares:

Sold

.....................................

1,913‌

8‌

21‌

431‌

485‌

480‌

19,102‌

Reinvested

................................

148‌

1‌

47‌

24‌

55‌

3,315‌

Redeemed

.................................

(

3,609‌

)

(

20‌

)

(

43‌

)

(

595‌

)

(

370‌

)

(

647‌

)

(

23,078‌

)

Net

Increase

(Decrease)

.......................

(

1,548‌

)

(

11‌

)

(

21‌

)

(

117‌

)

139‌

(

112‌

)

(

661‌

)

Dividends

and

Distributions

to

Shareholders:

Year

Ended

(a)

From

net

investment

income

and

net

realized

gain

on

investments

................................

$

(

950‌

)

$

(

7‌

)

$

(

8‌

)

$

(

315‌

)

$

(

203‌

)

$

(

338‌

)

$

(

25,194‌

)

Total

Dividends

and

Distributions

$

(

950‌

)

$

(

7‌

)

$

(

8‌

)

$

(

315‌

)

$

(

203‌

)

$

(

338‌

)

$

(

25,194‌

)

Year

Ended

From

net

investment

income

and

net

realized

gain

on

investments

................................

$

(

1,572‌

)

$

(

12‌

)

$

(

13‌

)

$

(

491‌

)

$

(

260‌

)

$

(

578‌

)

$

(

35,203‌

)

Total

Dividends

and

Distributions

$

(

1,572‌

)

$

(

12‌

)

$

(

13‌

)

$

(

491‌

)

$

(

260‌

)

$

(

578‌

)

$

(

35,203‌

)

(a)

Class

R-2

shares

discontinued

operations

and

converted

to

Class

R-3

shares

on

Statement

of

Changes

in

Net

Assets

Principal

Funds,

Inc.

40

See

accompanying

notes.

Amounts

in

thousands

International

Small

Company

Fund

Year

Ended

Year

Ended

Operations

Net

investment

income

(loss)

.......................................................................................................

$

11,826‌

$

8,204‌

Net

realized

gain

(loss)

on

investments

and

foreign

currencies

....................................................................

115,085‌

(

28,099‌

)

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

foreign

currencies

......................................

142,151‌

66,359‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

269,062‌

46,464‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

................................................................

(

12,895‌

)

(

27,587‌

)

Total

Dividends

and

Distributions

(

12,895‌

)

(

27,587‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

...............................................................................

(

118,904‌

)

129,849‌

Total

Increase

(Decrease)

in

Net

Assets

137,263‌

148,726‌

Net

Assets

Beginning

of

period

.................................................................................................................

1,044,263‌

895,537‌

End

of

period

.......................................................................................................................

$

1,181,526‌

$

1,044,263‌

Class

A

Institutional

R-6

Capital

Share

Transactions:

Year

Ended

(a)

Dollars:

Sold

..................................................................................

$

290‌

$

33,977‌

$

169,805‌

Reinvested

.............................................................................

43‌

1,046‌

11,806‌

Redeemed

..............................................................................

(

5,816‌

)

(

32,846‌

)

(

297,209‌

)

Net

Increase

(Decrease)

....................................................................

$

(

5,483‌

)

$

2,177‌

$

(

115,598‌

)

Shares:

Sold

..................................................................................

26‌

2,827‌

14,059‌

Reinvested

.............................................................................

4‌

88‌

990‌

Redeemed

..............................................................................

(

482‌

)

(

2,749‌

)

(

25,198‌

)

Net

Increase

(Decrease)

....................................................................

(

452‌

)

166‌

(

10,149‌

)

Year

Ended

Dollars:

Sold

..................................................................................

$

1,253‌

$

53,224‌

$

200,386‌

Reinvested

.............................................................................

119‌

1,106‌

26,362‌

Redeemed

..............................................................................

(

1,499‌

)

(

22,071‌

)

(

129,031‌

)

Net

Increase

(Decrease)

....................................................................

$

(

127‌

)

$

32,259‌

$

97,717‌

Shares:

Sold

..................................................................................

137‌

5,628‌

18,791‌

Reinvested

.............................................................................

10‌

97‌

2,306‌

Redeemed

..............................................................................

(

150‌

)

(

2,238‌

)

(

12,064‌

)

Net

Increase

(Decrease)

....................................................................

(

3‌

)

3,487‌

9,033‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

(a)

From

net

investment

income

and

net

realized

gain

on

investments

......................................

$

(

43‌

)

$

(

1,046‌

)

$

(

11,806‌

)

Total

Dividends

and

Distributions

$

(

43‌

)

$

(

1,046‌

)

$

(

11,806‌

)

Year

Ended

From

net

investment

income

and

net

realized

gain

on

investments

......................................

$

(

119‌

)

$

(

1,106‌

)

$

(

26,362‌

)

Total

Dividends

and

Distributions

$

(

119‌

)

$

(

1,106‌

)

$

(

26,362‌

)

(a)

Class

A

shares

discontinued

operations

on

2021.

Statement

of

Changes

in

Net

Assets

Principal

Funds,

Inc.

41

See

accompanying

notes.

Amounts

in

thousands

Opportunistic

Municipal

Fund

Year

Ended

Year

Ended

Operations

Net

investment

income

(loss)

.......................................................................................................

$

5,039‌

$

4,804‌

Net

realized

gain

(loss)

on

investments

.............................................................................................

1,160‌

(

1,272‌

)

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

..............................................................

8,370‌

(

3,908‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

14,569‌

(

376‌

)

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

................................................................

(

5,108‌

)

(

4,773‌

)

Total

Dividends

and

Distributions

(

5,108‌

)

(

4,773‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

...............................................................................

33,091‌

2,185‌

Total

Increase

(Decrease)

in

Net

Assets

42,552‌

(

2,964‌

)

Net

Assets

Beginning

of

period

.................................................................................................................

132,924‌

135,888‌

End

of

period

.......................................................................................................................

$

175,476‌

$

132,924‌

Class

A

Institutional

Capital

Share

Transactions:

Year

Ended

Dollars:

Sold

..............................................................................................

$

16,220‌

$

37,888‌

Reinvested

.........................................................................................

1,725‌

3,313‌

Redeemed

..........................................................................................

(

12,651‌

)

(

13,404‌

)

Net

Increase

(Decrease)

................................................................................

$

5,294‌

$

27,797‌

Shares:

Sold

..............................................................................................

1,419‌

3,296‌

Reinvested

.........................................................................................

152‌

291‌

Redeemed

..........................................................................................

(

1,114‌

)

(

1,188‌

)

Net

Increase

(Decrease)

................................................................................

457‌

2,399‌

Year

Ended

Dollars:

Sold

..............................................................................................

$

18,916‌

$

26,901‌

Reinvested

.........................................................................................

1,699‌

3,025‌

Redeemed

..........................................................................................

(

21,795‌

)

(

26,561‌

)

Net

Increase

(Decrease)

................................................................................

$

(

1,180‌

)

$

3,365‌

Shares:

Sold

..............................................................................................

1,732‌

2,476‌

Reinvested

.........................................................................................

156‌

278‌

Redeemed

..........................................................................................

(

2,060‌

)

(

2,528‌

)

Net

Increase

(Decrease)

................................................................................

(

172‌

)

226‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

From

net

investment

income

and

net

realized

gain

on

investments

..................................................

$

(

1,769‌

)

$

(

3,339‌

)

Total

Dividends

and

Distributions

$

(

1,769‌

)

$

(

3,339‌

)

Year

Ended

From

net

investment

income

and

net

realized

gain

on

investments

..................................................

$

(

1,736‌

)

$

(

3,037‌

)

Total

Dividends

and

Distributions

$

(

1,736‌

)

$

(

3,037‌

)

Statement

of

Changes

in

Net

Assets

Principal

Funds,

Inc.

42

See

accompanying

notes.

Amounts

in

thousands

Origin

Emerging

Markets

Fund

Year

Ended

Year

Ended

Operations

Net

investment

income

(loss)

.......................................................................................................

$

47,354‌

$

18,784‌

Net

realized

gain

(loss)

on

investments

and

foreign

currencies

....................................................................

142,323‌

40,345‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

and

foreign

currencies

......................................

33,160‌

183,179‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

222,837‌

242,308‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

................................................................

(

17,592‌

)

(

21,257‌

)

Total

Dividends

and

Distributions

(

17,592‌

)

(

21,257‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

...............................................................................

1,800,621‌

540,595‌

Total

Increase

(Decrease)

in

Net

Assets

2,005,866‌

761,646‌

Net

Assets

Beginning

of

period

.................................................................................................................

1,857,870‌

1,096,224‌

End

of

period

.......................................................................................................................

$

3,863,736‌

$

1,857,870‌

Class

A

Institutional

R-6

Capital

Share

Transactions:

Year

Ended

Dollars:

Sold

..................................................................................

$

7,512‌

$

110,756‌

$

2,219,452‌

Reinvested

.............................................................................

17‌

601‌

16,940‌

Redeemed

..............................................................................

(

2,444‌

)

(

21,423‌

)

(

530,790‌

)

Net

Increase

(Decrease)

....................................................................

$

5,085‌

$

89,934‌

$

1,705,602‌

Shares:

Sold

..................................................................................

521‌

8,253‌

155,917‌

Reinvested

.............................................................................

2‌

46‌

1,274‌

Redeemed

..............................................................................

(

174‌

)

(

1,536‌

)

(

40,477‌

)

Net

Increase

(Decrease)

....................................................................

349‌

6,763‌

116,714‌

Year

Ended

Dollars:

Sold

..................................................................................

$

5,736‌

$

14,587‌

$

661,748‌

Reinvested

.............................................................................

34‌

268‌

20,953‌

Redeemed

..............................................................................

(

4,644‌

)

(

3,310‌

)

(

154,777‌

)

Net

Increase

(Decrease)

....................................................................

$

1,126‌

$

11,545‌

$

527,924‌

Shares:

Sold

..................................................................................

523‌

1,335‌

58,724‌

Reinvested

.............................................................................

3‌

23‌

1,813‌

Redeemed

..............................................................................

(

433‌

)

(

301‌

)

(

13,852‌

)

Net

Increase

(Decrease)

....................................................................

93‌

1,057‌

46,685‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

From

net

investment

income

and

net

realized

gain

on

investments

......................................

$

(

17‌

)

$

(

603‌

)

$

(

16,972‌

)

Total

Dividends

and

Distributions

$

(

17‌

)

$

(

603‌

)

$

(

16,972‌

)

Year

Ended

From

net

investment

income

and

net

realized

gain

on

investments

......................................

$

(

35‌

)

$

(

269‌

)

$

(

20,953‌

)

Total

Dividends

and

Distributions

$

(

35‌

)

$

(

269‌

)

$

(

20,953‌

)

Statement

of

Changes

in

Net

Assets

Principal

Funds,

Inc.

43

See

accompanying

notes.

Amounts

in

thousands

Small-MidCap

Dividend

Income

Fund

Year

Ended

Year

Ended

Operations

Net

investment

income

(loss)

.......................................................................................................

$

12,891‌

$

26,964‌

Net

realized

gain

(loss)

on

investments

and

foreign

currencies

....................................................................

250,778‌

(

234,454‌

)

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

..............................................................

320,555‌

(

65,838‌

)

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

584,224‌

(

273,328‌

)

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

................................................................

(

18,307‌

)

(

54,509‌

)

Total

Dividends

and

Distributions

(

18,307‌

)

(

54,509‌

)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

...............................................................................

(

1,045,441‌

)

(

246,413‌

)

Total

Increase

(Decrease)

in

Net

Assets

(

479,524‌

)

(

574,250‌

)

Net

Assets

Beginning

of

period

.................................................................................................................

1,592,282‌

2,166,532‌

End

of

period

.......................................................................................................................

$

1,112,758‌

$

1,592,282‌

Class

A

Class

C

Institutional

R-6

Capital

Share

Transactions:

Year

Ended

Dollars:

Sold

.......................................................................

$

40,724‌

$

3,995‌

$

318,215‌

$

52,413‌

Reinvested

..................................................................

1,181‌

373‌

15,730‌

215‌

Redeemed

...................................................................

(

38,941‌

)

(

32,965‌

)

(

1,398,642‌

)

(

7,739‌

)

Net

Increase

(Decrease)

.........................................................

$

2,964‌

$

(

28,597‌

)

$

(

1,064,697‌

)

$

44,889‌

Shares:

Sold

.......................................................................

2,675‌

270‌

22,826‌

3,311‌

Reinvested

..................................................................

85‌

27‌

1,173‌

15‌

Redeemed

...................................................................

(

2,720‌

)

(

2,275‌

)

(

92,912‌

)

(

481‌

)

Net

Increase

(Decrease)

.........................................................

40‌

(

1,978‌

)

(

68,913‌

)

2,845‌

Year

Ended

Dollars:

Sold

.......................................................................

$

24,533‌

$

5,431‌

$

408,894‌

$

4,595‌

Reinvested

..................................................................

3,179‌

1,809‌

46,420‌

243‌

Redeemed

...................................................................

(

49,634‌

)

(

36,833‌

)

(

651,935‌

)

(

3,115‌

)

Net

Increase

(Decrease)

.........................................................

$

(

21,922‌

)

$

(

29,593‌

)

$

(

196,621‌

)

$

1,723‌

Shares:

Sold

.......................................................................

1,879‌

414‌

32,943‌

364‌

Reinvested

..................................................................

236‌

131‌

3,472‌

18‌

Redeemed

...................................................................

(

3,991‌

)

(

3,012‌

)

(

53,606‌

)

(

232‌

)

Net

Increase

(Decrease)

.........................................................

(

1,876‌

)

(

2,467‌

)

(

17,191‌

)

150‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

From

net

investment

income

and

net

realized

gain

on

investments

...........................

$

(

1,301‌

)

$

(

382‌

)

$

(

16,409‌

)

$

(

215‌

)

Total

Dividends

and

Distributions

$

(

1,301‌

)

$

(

382‌

)

$

(

16,409‌

)

$

(

215‌

)

Year

Ended

From

net

investment

income

and

net

realized

gain

on

investments

...........................

$

(

3,378‌

)

$

(

1,955‌

)

$

(

48,933‌

)

$

(

243‌

)

Total

Dividends

and

Distributions

$

(

3,378‌

)

$

(

1,955‌

)

$

(

48,933‌

)

$

(

243‌

)

Statement

of

Changes

in

Net

Assets

Principal

Funds,

Inc.

44

See

accompanying

notes.

Amounts

in

thousands

Small-MidCap

Growth

Fund

Year

Ended

Year

Ended

Operations

Net

investment

income

(loss)

.......................................................................................................

$

(

35‌

)

$

(

32‌

)

Net

realized

gain

(loss)

on

investments

.............................................................................................

3,371‌

353‌

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

..............................................................

183‌

1,724‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

3,519‌

2,045‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

................................................................

(

788‌

)

–‌

Total

Dividends

and

Distributions

(

788‌

)

–‌

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

...............................................................................

1,132‌

450‌

Total

Increase

(Decrease)

in

Net

Assets

3,863‌

2,495‌

Net

Assets

Beginning

of

period

.................................................................................................................

7,626‌

5,131‌

End

of

period

.......................................................................................................................

$

11,489‌

$

7,626‌

Institutional

Capital

Share

Transactions:

Year

Ended

Dollars:

Sold

.........................................................................................................

$

421‌

Reinvested

....................................................................................................

788‌

Redeemed

.....................................................................................................

(

77‌

)

Net

Increase

(Decrease)

...........................................................................................

$

1,132‌

Shares:

Sold

.........................................................................................................

27‌

Reinvested

....................................................................................................

45‌

Redeemed

.....................................................................................................

(

4‌

)

Net

Increase

(Decrease)

...........................................................................................

68‌

Year

Ended

Dollars:

Sold

.........................................................................................................

$

450‌

Net

Increase

(Decrease)

...........................................................................................

$

450‌

Shares:

Sold

.........................................................................................................

32‌

Net

Increase

(Decrease)

...........................................................................................

32‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

From

net

investment

income

and

net

realized

gain

on

investments

.............................................................

$

(

788‌

)

Total

Dividends

and

Distributions

$

(

788‌

)

Year

Ended

From

net

investment

income

and

net

realized

gain

on

investments

.............................................................

$

–‌

Total

Dividends

and

Distributions

$

–‌

Statement

of

Changes

in

Net

Assets

Principal

Funds,

Inc.

45

See

accompanying

notes.

Amounts

in

thousands

Spectrum

Preferred

and

Capital

Securities

Income

Fund

Year

Ended

Year

Ended

Operations

Net

investment

income

(loss)

.......................................................................................................

$

307,111‌

$

274,568‌

Net

realized

gain

(loss)

on

investments,

futures

and

options

and

swaptions

.......................................................

60,335‌

(58,865‌)

Net

change

in

unrealized

appreciation/(depreciation)

of

investments,

futures

and

options

and

swaptions

........................

215,531‌

119,640‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

582,977‌

335,343‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

................................................................

(339,747‌)

(294,361‌)

From

tax

return

of

capital

...........................................................................................................

–‌

(404‌)

Total

Dividends

and

Distributions

(339,747‌)

(294,765‌)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

...............................................................................

688,899‌

1,725,510‌

Total

Increase

(Decrease)

in

Net

Assets

932,129‌

1,766,088‌

Net

Assets

Beginning

of

period

.................................................................................................................

7,525,330‌

5,759,242‌

End

of

period

.......................................................................................................................

$

8,457,459‌

$

7,525,330‌

Class

A

Class

C

Class

J

Institutional

R-1

R-2

R-3

R-4

R-5

R-6

Capital

Share

Transactions:

Year

Ended

(a)

Dollars:

Sold

.......................

$

288,143‌

$

48,270‌

$

6,004‌

$

1,878,075‌

$

72‌

$

153‌

$

2,271‌

$

97‌

$

1,039‌

$

347,720‌

Reinvested

..................

28,454‌

9,063‌

1,727‌

167,861‌

23‌

13‌

67‌

39‌

157‌

39,487‌

Redeemed

...................

(217,288‌)

(176,876‌)

(9,245‌)

(1,474,750‌)

(108‌)

(1,751‌)

(1,214‌)

(362‌)

(709‌)

(247,533‌)

Net

Increase

(Decrease)

.........

$

99,309‌

$

(119,543‌)

$

(1,514‌)

$

571,186‌

$

(13‌)

$

(1,585‌)

$

1,124‌

$

(226‌)

$

487‌

$

139,674‌

Shares:

Sold

.......................

27,396‌

4,597‌

588‌

180,259‌

7‌

15‌

220‌

9‌

100‌

33,345‌

Reinvested

..................

2,712‌

866‌

170‌

16,125‌

2‌

1‌

6‌

4‌

15‌

3,795‌

Redeemed

...................

(20,694‌)

(16,805‌)

(908‌)

(141,631‌)

(10‌)

(171‌)

(116‌)

(35‌)

(68‌)

(23,774‌)

Net

Increase

(Decrease)

.........

9,414‌

(11,342‌)

(150‌)

54,753‌

(1‌)

(155‌)

110‌

(22‌)

47‌

13,366‌

Year

Ended

Dollars:

Sold

.......................

$

347,464‌

$

66,453‌

$

8,581‌

$

2,770,700‌

$

300‌

$

603‌

$

426‌

$

166‌

$

1,576‌

$

759,895‌

Reinvested

..................

29,399‌

12,743‌

1,992‌

145,879‌

21‌

40‌

82‌

47‌

154‌

27,727‌

Redeemed

...................

(268,600‌)

(180,666‌)

(13,241‌)

(1,796,262‌)

(742‌)

(558‌)

(1,203‌)

(574‌)

(1,350‌)

(185,542‌)

Net

Increase

(Decrease)

.........

$

108,263‌

$

(101,470‌)

$

(2,668‌)

$

1,120,317‌

$

(421‌)

$

85‌

$

(695‌)

$

(361‌)

$

380‌

$

602,080‌

Shares:

Sold

.......................

34,368‌

6,543‌

864‌

280,348‌

29‌

60‌

42‌

17‌

158‌

75,629‌

Reinvested

..................

2,905‌

1,260‌

203‌

14,521‌

2‌

4‌

8‌

5‌

16‌

2,761‌

Redeemed

...................

(26,508‌)

(17,952‌)

(1,378‌)

(182,431‌)

(72‌)

(59‌)

(126‌)

(58‌)

(142‌)

(19,155‌)

Net

Increase

(Decrease)

.........

10,765‌

(10,149‌)

(311‌)

112,438‌

(41‌)

5‌

(76‌)

(36‌)

32‌

59,235‌

Dividends

and

Distributions

to

Shareholders:

Year

Ended

(a)

From

net

investment

income

and

net

realized

gain

on

investments

......

$

(36,063‌)

$

(10,211‌)

$

(1,762‌)

$

(220,025‌)

$

(23‌)

$

(30‌)

$

(80‌)

$

(39‌)

$

(157‌)

$

(71,357‌)

Total

Dividends

and

Distributions

$

(36,063‌)

$

(10,211‌)

$

(1,762‌)

$

(220,025‌)

$

(23‌)

$

(30‌)

$

(80‌)

$

(39‌)

$

(157‌)

$

(71,357‌)

Year

Ended

From

net

investment

income

and

net

realized

gain

on

investments

......

$

(34,841‌)

$

(15,830‌)

$

(2,015‌)

$

(191,108‌)

$

(21‌)

$

(69‌)

$

(82‌)

$

(47‌)

$

(154‌)

$

(50,194‌)

From

tax

return

of

capital

........

(47‌)

(20‌)

(3‌)

(265‌)

–‌

(69‌)

Total

Dividends

and

Distributions

$

(34,888‌)

$

(15,850‌)

$

(2,018‌)

$

(191,373‌)

$

(21‌)

$

(69‌)

$

(82‌)

$

(47‌)

$

(154‌)

$

(50,263‌)

(a)

Class

R-2

shares

discontinued

operations

and

converted

to

Class

R-3

shares

on

Statement

of

Cash

Flows

Principal

Funds,

Inc.

Year

Ended

46

See

accompanying

notes.

(a)

Consolidated

financial

statement;

see

"Basis

for

Consolidation"

in

Notes

to

Financial

Statements.

Amounts

in

thousands

Global

Multi-

Strategy

Fund

(a)

Cash

Flows

from

Operating

Activities:

Net increase

in

net

assets

resulting

from

operations

..........................................................................................................

$

58,639

Adjustments

to

reconcile

net

increase

in

net

assets

resulting

from

operations

to

net

cash

provided

by

operating

activities:

Purchase

of

investment

securities

.......................................................................................................................

(1,894,536)

Proceeds

from

sale

of

investment

securities

............................................................................................................

2,668,738

Net

sales

or

(purchases)

of

short

term

securities

........................................................................................................

276,304

Proceeds

from

(payments

on)

purchased

options,

net

..................................................................................................

(3,099)

Proceeds

from

(payments

on)

short

sales

transactions,

net

.............................................................................................

(385,708)

Proce

eds

from

(payments

on)

swap

agreements

,

net

....................................................................................................

(1,562)

Proceeds

from

(payments

on)

option

and

swaption

written,

net

..............................................................................

1,672

Net

accretion

of

bond

discounts

and

amortization

of

premiums

........................................................................................

(2,884)

Change

in

unrealized

(appreciation)

depreciation

on

investments

......................................................................................

12,076

Change

in

unrealized

(appreciation)

depreciation

on

swap

agreements

................................................................................

(2,460)

Change

in

unrealized

(appreciation)

depreciation

on

options

and

swaptions

...........................................................................

(104)

Change

in

unrealized

(appreciation)

depreciation

on

shorts

............................................................................................

(10,462)

Net

realized

gain

(loss)

from

investments

..............................................................................................................

(107,475)

Net

realized

gain

(loss)

from

swap

agreements

.........................................................................................................

5,526

Net

realized

gain

(loss)

from

options

and

swaptions

....................................................................................................

(1,744)

Net

realized

gain

(loss)

from

shorts

.....................................................................................................................

41,118

(Increase)

decrease

in

dividends

and

interest

receivable

................................................................................................

3,511

(Increase)

decrease

in

deposits

with

counterparty

......................................................................................................

44,409

(Increase)

decrease

in

investment

securities

sold

.......................................................................................................

32,744

(Increase)

decrease

in

variation

margin

on

futures,

net

.................................................................................................

625

(Increase)

decrease

in

variation

margin

on

swaps,

net

..................................................................................................

162

Increase

(decrease)

in

accrued

fees

,

accrued

expenses

,

prepaid

expenses,

and

expense

reimbursement

from

Manager

...............................

(421)

Increase

(decrease)

in

dividends

and

interest

on

securities

sold

short

..................................................................................

(460)

Increase

(decrease)

in

deposits

from

counterparty

......................................................................................................

(220)

Increase

(decrease)

in

investment

securities

purchased

.................................................................................................

(26,076)

Increase

(decrease)

in

foreign

currency

net

..................................................................................................

(374)

Increase

(decrease)

in

unrealized

loss

on

unfunded

loan

commitments

................................................................................

22

Net

cash

provided

by

operating

activities

707,961

Cash

Flows

from

Financing

Activities:

Net

payments

from

reverse

repurchase

agreements

.....................................................................................................

(412,677)

Proceeds

from

shares

sold

...............................................................................................................................

128,621

Payment

on

shares

redeemed

............................................................................................................................

(422,218)

Dividends

and

distributions

paid

to

shareholders

.......................................................................................................

(3,427)

Net

cash used

in

financing

activities

(709,701)

Net

increase

(

decrease

)

in

cash

and

foreign

currency

...................................................................................................

(1,740)

Cash

and

Foreign

Currency:

Beginning

of

period

.....................................................................................................................................

$

3,532

End

of

period

............................................................................................................................................

$

1,792

Supplemental

disclosure

of

cash

flow

information:

Reverse

repurchase

agreement

interest

paid

............................................................................................................

$

174

Reinvestment

of

dividends

and

distributions

...........................................................................................................

$

9,462

Notes

to

Financial

Statements

Principal

Funds,

Inc.

47

1.

Organization

Principal

Funds,

Inc.

(the

"Fund")

is

registered

under

the

Investment

Company

Act

of

1940,

as

amended

(“1940

Act”),

as

an

open-end

management

investment

company

and

operates

as

a

series

fund

in

the

mutual

fund

industry.

The

financial

statements

for

Blue

Chip

Fund,

Bond

Market

Index

Fund,

Diversified

Real

Asset

Fund,

Edge

MidCap

Fund,

Global

Multi-Strategy

Fund,

International

Equity

Index

Fund,

International

Small

Company

Fund,

Opportunistic

Municipal

Fund,

Origin

Emerging

Markets

Fund,

Small-MidCap

Dividend

Income

Fund,

Small-MidCap

Growth

Fund,

and

Spectrum

Preferred

and

Capital

Securities

Income

Fund,

series

of

the

Fund,

(known

as

the

"Funds")

are

presented

herein.

The

Funds

may

offer

up

to

nine

classes

of

shares:

Class

A,

Class

C,

Class

J,

Institutional,

R-1,

R-3,

R-4,

R-5,

and

R-6.

Each

of

the

Funds

is

an

investment

company

and

applies

specialized

accounting

and

reporting

under

Accounting

Standards

Codification

(“ASC”)

Topic

946,

Financial

Services

-

Investment

Companies

.

The

Funds

have

not

provided

financial

support

and

are

not

contractually

required

to

provide

financial

support

to

any

investee.

Effective

2021,

Class

C

shares

discontinued

operations

and

converted

into

Class

A

shares

for

Diversified

Real

Asset

Fund

and

Global

Multi-Asset

Strategy

Fund.

Effective

2021,

Class

A

shares

discontinued

operations

for

International

Small

Company

Fund.

Effective

2021,

Class

R-2

shares

discontinued

operations

and

converted

into

Class

R-3

shares

for

all

Funds.

All

classes

of

shares

for

each

of

the

Funds

represent

interests

in

the

same

portfolio

of

investments

and

will

vote

together

as

a

single

class

except

where

otherwise

required

by

law

or

as

determined

by

the

Fund’s

Board

of

Directors.

In

addition,

the

Board

of

Directors

declares

separate

dividends

on

each

class

of

shares.

2.

Significant

Accounting

Policies

The

preparation

of

financial

statements

in

conformity

with

U.S.

generally

accepted

accounting

principles

(“U.S.

GAAP”)

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

and

disclosure

of

contingent

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

reported

amounts

of

revenues

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

The

following

summarizes

the

significant

accounting

policies

of

the

Funds:

Security

Valuation.

The

Funds

may

invest

in

other

series

of the

Fund

and

other

investment

companies,

which

may

include

closed-end

investment

companies,

exchange-traded

funds,

money

market

funds

and

other

registered

open-end

investment

companies.

Investments

in

registered open-end

investment

companies,

other

than

exchange-traded

funds, are

valued

at

the

respective

fund's

closing

net

asset

value

per

share

on

the

day

of

valuation.

The

Funds

value

securities,

including

exchange-traded

funds,

for

which

market

quotations

are

readily

available

at

fair

value,

which

is

determined

using

the

last

reported

sale

price.

If

no

sales

are

reported,

as

is

regularly

the

case

for

some

securities

traded

over-the-counter,

securities

are

valued

using

the

last

reported

bid

price

or

an

evaluated

bid

price

provided

by

a

pricing

service.

Pricing

services

use

modeling

techniques

that

incorporate

security

characteristics

such

as

current

quotations

by

broker/dealers,

coupon,

maturity,

quality,

type

of

issue,

trading

characteristics,

other

yield

and

risk

factors,

and

other

market

conditions

to

determine

an

evaluated

bid

price

or,

in

the

case

of

certain

credit

default

swaps,

a

mean

price

provided

by

a

pricing

service.

When

reliable

market

quotations

are

not

considered

to

be

readily

available,

which

may

be

the

case,

for

example,

with

respect

to

restricted

securities,

certain

debt

securities,

preferred

stocks,

and

foreign

securities,

the

investments

are

valued

at

their

fair

value

as

determined

in

good

faith

by

Principal

Global

Investors,

LLC

(the

“Manager”)

under

procedures

established

and

periodically

reviewed

by

the

Fund’s

Board

of

Directors.

The

value

of

foreign

securities

used

in

computing

the

net

asset

value

per

share

is

generally

determined

as

of

the

close

of

the

foreign

exchange

where

the

security

is

principally

traded.

Events

that

occur

after

the

close

of

the

applicable

foreign

market

or

exchange,

but

prior

to

the

calculation

of

the

Funds’

net

asset

values

are

reflected

in

the

Funds’

net

asset

values

and

these

securities

are

valued

at

fair

value.

Many

factors,

provided

by

independent

pricing

services,

are

reviewed

in

the

course

of

making

a

good

faith

determination

of

a

security’s

fair

value,

including,

but

not

limited

to,

price

movements

in

American

depository

receipts

(“ADRs”),

futures

industry

indices,

general

indices,

and

foreign

currencies.

To

the

extent

the

Funds

invest

in

foreign

securities

listed

on

foreign

exchanges

which

trade

on

days

on

which

the

Funds

do

not

determine

net

asset

values,

for

example,

weekends

and

other

customary

national

U.S.

holidays,

the

Funds’

net

asset

values

could

be

significantly

affected

on

days

when

shareholders

cannot

purchase

or

redeem

shares.

Notes

to

Financial

Statements

Principal

Funds,

Inc.

48

Certain

securities

issued

by

companies

in

emerging

market

countries

may

have

more

than

one

quoted

valuation

at

any

given

point

in

time,

sometimes

referred

to

as

a

“local”

price

and

a

“premium”

price.

The

premium

price

is

often

a

negotiated

price,

which

may

not

consistently

represent

a

price

at

which

a

specific

transaction

can

be

effected.

It

is

the

policy

of

the

Fund

to

value

such

securities

at

prices

at

which

it

is

expected

those

shares

may

be

sold,

and

the

Manager

or

any

sub-advisor

is

authorized

to

make

such

determinations

subject

to

such

oversight

by

the

Fund’s

Board

of

Directors

as

may

occasionally

be

necessary.

Currency

Translation.

Foreign

holdings

are

translated

to

U.S.

dollars

using

the

exchange

rate

at

the

daily

close

of

the

New

York

Stock

Exchange.

The

identified

cost

of

the

Funds’

holdings

is

translated

at

approximate

rates

prevailing

when

acquired.

Income

and

expense

amounts

are

translated

at

approximate

rates

prevailing

when

received

or

paid,

with

daily

accruals

of

such

amounts

reported

at

approximate

rates

prevailing

at

the

date

of

valuation.

Since

the

carrying

amount

of

the

foreign

securities

is

determined

based

on

the

exchange

rate

and

market

values

at

the

close

of

the

period,

it

is

not

practicable

to

isolate

that

portion

of

the

results

of

operations

arising

as

a

result

of

changes

in

the

foreign

exchange

rates

from

the

fluctuations

arising

from

changes

in

the

market

prices

of

securities

during

the

period.

Net

realized

foreign

exchange

gains

or

losses

arise

from

sales

of

foreign

currencies,

currency

gains

or

losses

realized

between

trade

and

settlement

dates

on

security

transactions,

and

the

difference

between

the

amount

of

dividends,

interest

income,

interest

expense,

and

foreign

withholding

taxes

recorded

on

the

books

and

the

U.S.

dollar

equivalent

of

the

amounts

actually

received

or

paid.

Net

unrealized

appreciation

(depreciation)

on

translation

of

assets

and

liabilities

in

foreign

currencies

arise

from

changes

in

the

exchange

rate

relating

to

assets

and

liabilities,

other

than

investments

in

securities,

purchased

and

held

in

non-U.S.

denominated

currencies.

The

following

Funds

held

securities

denominated

in

foreign

currencies

that

exceeded

5%

of

net

assets

of

the

respective

fund

as

of

2021:

Income

and

Investment

Transactions.

The

Funds

record

investment

transactions

on

a

trade

date

basis.

Trade

date

for

senior

floating

rate

interests

purchased

in

the

primary

market

is

considered

the

date

on

which

the

loan

allocations

are

determined.

Trade

date

for

senior

floating

rate

interests

purchased

in

the

secondary

market

is

the

date

on

which

the

transaction

is

entered

into.

The

identified

cost

basis

has

been

used

in

determining

the

net

realized

gain

or

loss

from

investment

transactions

and

unrealized

appreciation

or

depreciation

of

investments.

The

Funds

record

dividend

income

on

the

ex-dividend

date,

except

dividend

income

from

foreign

securities

whereby

the

ex-dividend

date

has

passed;

such

dividends

are

recorded

as

soon

as

the

Funds

are

informed

of

the

ex-dividend

date.

Interest

income

is

recognized

on

an

accrual

basis.

Discounts

and

premiums

on

securities

are

accreted/amortized,

respectively,

on

the

level

yield

method

over

the

expected

lives

of

the

respective

securities.

Callable

debt

securities

purchased

at

a

premium

are

amortized

to

the

earliest

call

date

and

to

the

callable

amount,

if

other

than

par.

The

Funds

allocate

all

income

and

realized

and

unrealized

gains

or

losses

on

a

daily

basis

to

each

class

of

shares

based

upon

the

relative

proportion

of

the

value

of

shares

outstanding

of

each

class.

Expenses.

Expenses

directly

attributed

to

a

particular

fund

are

charged

to

that

fund.

Other

expenses

not

directly

attributed

to

a

particular

fund

are

apportioned

among

the

registered

investment

companies

managed

by

the

Manager.

Diversified

Real

Asset

Fund

Euro

8

.0%

Global

Multi-Strategy

Fund

Euro

5

.1%

International

Equity

Index

Fund

Euro

32

.6%

Japanese

Yen

22

.2

British

Pound

Sterling

13

.8

Swiss

Franc

9

.7

Australian

Dollar

6

.7

International

Small

Company

Fund

Euro

23

.3%

Japanese

Yen

22

.0

British

Pound

Sterling

19

.2

Canadian

Dollar

11

.0

Australian

Dollar

5

.6

Origin

Emerging

Markets

Fund

Hong

Kong

Dollar

22

.7%

New

Taiwan

Dollar

21

.2

South

Korean

Won

11

.1

Chinese

Renminbi

9

.9

Indian

Rupee

6

.6

Brazilian

Real

6

.4

2.

Significant

Accounting

Policies

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

49

Management

fees

are

allocated

daily

to

each

class

of

shares

based

upon

the

relative

proportion

of

the

value

of

shares

outstanding

of

each

class.

Expenses

specifically

attributable

to

a

particular

class

are

charged

directly

to

such

class

and

are

included

separately

in

the

statements

of

operations.

In

addition

to

the

expenses

the

Funds

bear

directly,

each

of

the

Funds

may

indirectly

bear

a

pro

rata

share

of

the

fees

and

expenses

of

the

other

series

of

the

Fund

and

other

investment

companies

(collectively,

“Underlying

Funds”)

in

which

they

invest.

Because

the

Underlying

Funds

have

varied

expense

levels

and

each

of

the

Funds

may

own

different

proportions

of

the

Underlying

Funds

at

different

times,

the

amount

of

expense

incurred

indirectly

by

each

Fund

will

vary.

Expenses

included

in

the

statements

of

operations

of

the

Funds

do

not

include

any

expenses

associated

with

the

Underlying

Funds.

Dividends

and

Distributions

to

Shareholders.

With

respect

to

Opportunistic

Municipal

Fund,

net

investment

income

is

declared

as

dividends

daily

to

settled

shares

of

record

as

of

that

day,

and

all

distributions

of

realized

gains

from

investment

transactions

are

recorded

on

the

ex-dividend

date.

Dividends

and

distributions

to

shareholders

of

the

other

Funds

are

recorded

on

the

ex-dividend

date.

Dividends

and

distributions

to

shareholders

from

net

investment

income

and

net

realized

gain

from

investments

and

foreign

currency

transactions

are

determined

in

accordance

with

federal

tax

regulations,

which

may

differ

from

U.S.

GAAP.

These

differences

are

primarily

due

to

differing

treatments

for

amortization

of

premiums

and

discounts,

net

operating

losses,

foreign

currency

transactions,

inverse

floating

rate

securities

(“Inverse

Floaters”),

options

and

futures

certain

defaulted

securities,

sales

of

passive

foreign

investment

companies,

losses

deferred

due

to

wash

sales,

tax

straddles,

mortgage-backed

securities,

certain

preferred

securities,

swap

agreements,

short

sales,

partnership

investments,

Real

Estate

Investment

Trusts

(“REITs”),

utilization

of

earnings

and

profits

distributed

to

shareholders

on

redemption

of

shares,

and

limitations

imposed

by

Sections

381-384

of

the

Internal

Revenue

Code.

Permanent

book

and

tax

basis

differences

are

reclassified

within

the

capital

accounts

based

on

federal

tax-basis

treatment;

temporary

differences

do

not

require

reclassification.

To

the

extent

dividends

and

distributions

exceed

current

and

accumulated

earnings

and

profits

for

federal

income

tax

purposes,

they

are

reported

as

return

of

capital

distributions.

Federal

Income

Taxes.

No

provision

for

federal

income

taxes

is

considered

necessary

because

each

of

the

Funds

intends

to

qualify

as

a

“regulated

investment

company”

under

the

Internal

Revenue

Code

and

intends

to

distribute

each

year

substantially

all

of

its

net

investment

income

and

realized

capital

gains

to

shareholders.

Management

evaluates

tax

positions

taken

or

expected

to

be

taken

in

the

course

of

preparing

the

Funds’

tax

returns

to

determine

whether

it

is

“more

likely

than

not”

that

each

tax

position

would

be

sustained

upon

examination

by

a

taxing

authority

based

on

the

technical

merits

of

the

position.

Tax

positions

not

deemed

to

meet

the

"more

likely

than

not"

threshold

would

be

recorded

as

a

tax

benefit

or

expense

in

the

current

year.

During

the year

ended

2021,

the

Funds

did

not

record

any

such

tax

benefit

or

expense

in

the

accompanying

financial

statements.

The

statute

of

limitations

remains

open

for

the

last

three

years,

once

a

return

is

filed.

No

examinations

are

in

progress

at

this

time.

Foreign

Taxes.

Certain

of

the

Funds

are

subject

to

foreign

income

taxes

imposed

by

certain

countries

in

which

they

invest.

Foreign

income

taxes

are

accrued

by

the

Funds

as

a

reduction

of

income.

These

amounts

are

shown

as

withholding

tax

on

the

statements

of

operations.

In

consideration

of

recent

decisions

rendered

by

European

courts,

certain

of

the

Funds

have

filed

additional

tax

reclaims

for

taxes

withheld

in

prior

years.

Due

to

the

uncertainty

regarding

collectability

and

timing

of

these

reclaims,

among

other

factors,

a

corresponding

receivable

will

only

be

recognized

when

the

tax

position

meets

the

"more

likely

than

not"

threshold.

Gains

realized

upon

the

disposition

of

certain

foreign

securities

held

by

certain

Funds

may

be

subject

to

capital

gains

tax,

payable

prior

to

the

repatriation

of

sale

proceeds.

The

tax

is

computed

on

certain

net

realized

gains

and,

if

any,

is

shown

on

the

statements

of

operations.

Realized

losses

in

excess

of

gains

may

be

carried

forward

to

offset

future

gains.

In

addition,

the

Funds

accrue

an

estimated

tax

liability

for

future

gains

on

certain

foreign

securities.

Any

accrued

foreign

tax

liability

is

shown

on

the

statements

of

assets

and

liabilities.

At

2021,

Origin

Emerging

Markets

Fund

had

an

accrued

tax

liability

of

$7,413,000

relating

to

foreign

securities.

Basis

for

Consolidation.

Diversified

Real

Asset

Fund

and

Global

Multi-Strategy

Fund

(the

“Consolidated

Funds”)

may

invest

up

to

25%

of

their

total

assets

in

their

respective

wholly-owned

subsidiaries

DRA

Cayman

Corporation

and

GMS

Cayman

Corporation

(the

“Cayman

Subsidiaries”),

each

organized

under

the

laws

of

the

Cayman

Islands.

The

Consolidated

Funds

are

the

sole

shareholder

of

their

respective

Cayman

Subsidiaries,

and

shares

of

the

Cayman

Subsidiaries

will

not

be

sold

or

offered

to

other

investors.

To

the

extent

that

the

Consolidated

Funds

invest

in

their

Cayman

Subsidiaries,

they

will

be

subject

to

the

particular

risks

associated

with

the

Cayman

Subsidiaries'

investments,

which

are

discussed

in

the

applicable

Prospectus

and

Statement

of

Additional

Information.

The

principal

purpose

of

investing

in

the

Cayman

Subsidiaries

is

to

allow

the

Consolidated

Funds

to

gain

exposure

to

the

commodity

markets

within

the

limitations

of

federal

tax

laws

applicable

to

regulated

investment

companies.

Diversified

Real

Asset

Fund’s

investment

portfolio

has

been

consolidated

and

includes

the

portfolio

holdings

of

Diversified

Real

Asset

Fund

and

its

Cayman

subsidiary.

Global

Multi-Strategy

Fund’s

investment

portfolio

has

been

consolidated

2.

Significant

Accounting

Policies

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

50

and

includes

the

portfolio

holdings

of

Global

Multi-Strategy

Fund

and

its

Cayman

subsidiary.

The

consolidated

financial

statements

for

Diversified

Real

Asset

Fund

include

the

accounts

of

Diversified

Real

Asset

Fund

and

its

Cayman

subsidiary

and

the

consolidated

financial

statements

for

Global

Multi-Strategy

Fund

include

the

accounts

of

Global

Multi-Strategy

Fund

and

its

Cayman

subsidiary.

All

intercompany

transactions

and

balances

have

been

eliminated

in

consolidation.

At

2021,

the

net

assets

of

the

Cayman

Subsidiaries

were

as

follows

(amounts

in

thousands):

Recent

Accounting

Pronouncements.

In

March

2020,

the

Financial

Accounting

Standards

Board

("FASB") issued

Accounting

Standards

Update

("ASU")

No.

2020-04

Reference

Rate

Reform

(Topic

848);

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting,

which

provides

optional

guidance

for

a

limited

period

of

time

to

ease

the

potential

burden

in

accounting

for

(or

recognizing

the

effects

of)

reference

rate

reform.

The

guidance

is

applicable

to

referencing

London

Interbank

Offered

Rate

(“LIBOR”)

or

another

reference

rate

that

is

expected

to

be

discontinued

due

to

reference

rate

reform.

The

ASU

is

effective

as

of

and

generally

can

be

applied

through

2022.

Management

is

evaluating

the

impact

of

the

ASU

over

the

period

of

time

the

ASU

is

effective.

3.

Operating

Policies

Borrowings.

Pursuant

to

an

exemptive

order

issued

by

the

Securities

and

Exchange

Commission

(the

“SEC”),

the

Funds

and

other

registered

investment

companies

managed

by

the

Manager

may

participate

in

an

interfund

lending

facility

(“Facility”).

The

Facility

allows

the

Funds

to

borrow

money

from

or

loan

money

to

the

other

participants.

Loans

under

the

Facility

are

made

to

handle

unusual

and/or

unanticipated

short-

term

cash

requirements.

Interest

paid

and

received

on

borrowings

is

the

average

of

the

current

repurchase

agreement

rate

and

the

bank

loan

rate

(the

higher

of

(i)

the

Federal

Funds

Rate

or

(ii)

the

LIBOR

rate

plus

1.00%).

The

interest

income

received

is

included

in

interest

income

on

the

statements

of

operations.

The

interest

expense

associated

with

these

borrowings

is

included

in

other

expenses

on

the

statements

of

operations.

There

were

no

outstanding

loans

or

borrowings

as

of

During

the year

ended

2021,

Funds

lending

to

the

Facility

were

as

follows

(amounts

in

thousands):

During

the year

ended

2021,

Funds

borrowing

from

the

Facility

were

as

follows

(amounts

in

thousands):

In

addition,

the

Funds,

with

the

exception

of

Diversified

Real

Asset

Fund,

participate

with

other

registered

investment

companies

managed

by

the

Manager

in

an

unsecured

joint

line

of

credit

with

a

bank

which

allows

the

participants

to

borrow

up

to

$250

million,

collectively,

effective

2021.

Prior

to

2021,

participants

could

borrow

up

to

$100

million,

collectively.

Borrowings

are

made

solely

Net

Assets

Percent

of

Consolidated

Fund's

Net

Assets

DRA

Cayman

Corporation

$

663,324

15.13

%

GMS

Cayman

Corporation

11,750

2.08

Average

Daily

Amount

Loaned

Weighted

Average

Annual

Interest

Rate

Blue

Chip

Fund

$

195

0.58

%

Bond

Market

Index

Fund

525

0.68

Diversified

Real

Asset

Fund

379

0.68

Edge

MidCap

Fund

359

0.62

Global

Multi-Strategy

Fund

107

0.63

International

Equity

Index

Fund

2

0.67

International

Small

Company

Fund

160

0.70

Origin

Emerging

Markets

Fund

857

0.60

Small-

MidCap

Dividend

Income

Fund

221

0.64

Spectrum

Preferred

and

Capital

Securities

Income

Fund

486

0.68

Average

Daily

Outstanding

Balance

Weighted

Average

Annual

Interest

Rate

Blue

Chip

Fund

$

5,831

0.65

%

Diversified

Real

Asset

Fund

581

0.63

Global

Multi-Strategy

Fund

80

0.71

International

Equity

Index

Fund

468

0.64

International

Small

Company

Fund

156

0.61

Opportunistic

Municipal

Fund

4

0.62

Origin

Emerging

Markets

Fund

1,373

0.71

Spectrum

Preferred

and

Capital

Securities

Income

Fund

187

0.70

2.

Significant

Accounting

Policies

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

51

to

facilitate

the

handling

of

unusual

and/or

unanticipated

short-term

cash

requirements.

Interest

is

charged

to

each

participant,

based

on

its

borrowings,

at

a

rate

equal

to

the

higher

of

the

Federal

Funds

Rate

or

the

LIBOR

rate

(or

such

successor

if

no

longer

available)

plus

1.25%.

Additionally,

a

commitment

fee

is

charged

at

an

annual

rate

of

.15%

(effective

and

thereafter)

on

the

amount

of

the

line

of

credit

which

is

allocated

to

each

participant

based

on

average

net

assets.

Prior

to

2021,

the

commitment

fee

was

charged

at

an

annual

rate

of

.20%.

The

interest

expense

associated

with

the

commitment

fee

and

borrowings

is

included

in

other

expenses

on

the

statements

of

operations.

The

Funds

did

not

borrow

against

the

line

of

credit

during

the

year

ended

.

Commodity

Linked

Notes.

Diversified

Real

Asset

Fund

invests

in

structured

notes

whose

market

values

are

primarily

derived

from

changes

in

the

value

of

various

commodity

indices

and

other

factors.

Valuations

on

these

securities

may

be

volatile

as

the

payment

features

on

certain

notes

may

contain

attributes

that

multiply

the

effects

of

changes

in

the

values

of

the

underlying

indices.

Structured

notes

may

entail

a

greater

degree

of

market

risk

than

other

types

of

debt

securities.

Structured

notes

may

also

be

more

volatile,

less

liquid,

and

more

difficult

to

accurately

price

than

less

complex

securities

or

more

traditional

debt

securities.

Fluctuations

in

the

fair

value

of

the

structured

notes

are

recorded

as

unrealized

gains

and

losses

in

the

accompanying

financial

statements.

Interest

income

is

accrued

daily.

These

notes

are

subject

to

prepayment,

credit,

and

interest

rate

risks.

At

maturity,

or

when

a

note

is

sold,

the

fund

records

a

realized

gain

or

loss.

Contingent

Convertible

Securities.

As

footnoted

in

the

schedules

of

investments,

certain

of

the

Funds

invest

in

contingent

convertible securities

(“

CoCos

”).

CoCos

are

hybrid

debt

securities

that

may

convert

into

equity

or

have

their

principal

written

down

upon

the

occurrence

of

certain

“triggers.”

Although

a

contingent

convertible

security’s

equity

conversion

and

principal

write-down

features

are

tailored

to

the

particular

issuing

banking

institution

and

its

regulatory

requirements,

triggers

are

generally

linked

to

regulatory

capital

thresholds

or

regulatory

actions

calling

into

question

such

institution’s

continued

viability

as

a

going-concern.

CoCos

may

have

no

stated

maturity

and

fully

discretionary

coupons,

which

means

coupon

payments

can

be

canceled

at

the

issuing

banking

institution’s

discretion

or

at

the

request

of

the

relevant

regulatory

authority

without

causing

a

default.

To

provide

the

appropriate

regulatory

capital

treatment,

CoCos

are

usually

issued

in

the

form

of

subordinated

debt

instruments

that

rank

junior

to

the

claims

of

holders

of

more

senior

obligations

in

the

event

of

the

issuer’s

liquidation.

If

CoCos

are

converted

into

equity

securities

due

to

a

trigger

event,

holders

will

be

further

subordinated.

The

future

value

of

CoCos

is

unpredictable

and

is

influenced

by

many

factors

including,

without

limitation:

the

creditworthiness

of

the

issuer

and/or

fluctuations

in

such

issuer’s

applicable

capital

ratios;

supply

and

demand

for

CoCos

;

general

market

conditions

and

available

liquidity;

and

economic,

financial

and

political

events

that

affect

the

issuer,

its

particular

market

or

the

financial

markets

in

general.

Due

to

these

features,

CoCos

may

have

substantially

greater

risk

than

other

securities

in

times

of

financial

stress.

Because

of

the

uncertainty

regarding

whether

a

conversion

event

will

occur,

it

may

be

difficult

to

predict

when,

if

at

all,

a

contingent

convertible

security

will

be

converted

to

equity,

and

a

fund

may

suffer

losses

as

a

result.

If

the

trigger

level

is

breached,

the

issuer’s

decision

to

write

down,

write

off

or

convert

a

contingent

convertible

security

may

result

in

the

fund's

complete

loss

on

an

investment

in

CoCos

with

no

chance

of

recovery

even

if

the

issuer

remains

in

existence.

Counterparties.

The

Funds

may

be

exposed

to

counterparty

risk,

or

the

risk

that

another

party

with

which

the

Funds

have

unsettled

or

open

transactions

will

fail

to

perform

on

their

commitment.

To

the

extent

that

unpaid

amounts

owed

to

the

Funds

exceed

a

predetermined

threshold

agreed

to

with

the

counterparty,

as

stated

in

the

counterparties'

master

netting

agreements

("Master

Netting

Agreements"),

such

counterparty

shall

advance

collateral

to

the

Funds

in

the

form

of

cash

or

cash

equivalents

equal

in

value

to

the

unpaid

amount

owed

to

the

Funds.

If

the

unpaid

amount

owed

to

the

Funds

subsequently

decreases,

the

Funds

would

be

required

to

return

all

or

a

portion

of

the

collateral.

Master

Netting

Agreements

may

also

help

limit

counterparty

risk

by

specifying

collateral

posting

arrangements

at

pre-arranged

exposure

levels.

Under

the

Master

Netting

Agreements,

collateral

is

routinely

transferred

if

the

total

net

exposure

to

certain

transactions

governed

under

the

relevant

master

netting

agreement

with

a

counterparty

exceeds

a

specified

threshold.

The

financial

instruments

that

are

subject

to

Master

Netting

Agreements

or

similar

agreements

may

include

right

of

setoff

provisions.

Derivative

instruments

include

provisions

to

setoff

positions

covered

under

the

agreements

with

the

same

counterparties

and

provisions

to

setoff

positions

outside

of

the

agreements

with

the

same

counterparties

in

the

event

of

default

by

one

of

the

parties.

Derivative

instruments

are

shown gross

on

the

statements

of

assets

and

liabilities.

Derivative

instruments

also

include

collateral

provisions.

Collateral

received

and

pledged

are

generally

settled

daily

with

each

counterparty.

Diversified

Real

Asset

Fund

and

Global

Multi-Strategy

Fund

have

financial

instruments

that

are

subject

to

Master

Netting

Agreements

or

similar

agreements.

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

52

As

of

2021,

financial

assets

and

liabilities

subject

to

Master

Netting

Agreements

or

similar

agreements

were

as

follows

(amounts

in

thousands):

Assets

*

Liabilities

*

Net

Market

Value

of

OTC

Derivatives

Collateral

(Received)/

Pledged

†

Net

Exposure

Diversified

Real

Asset

Fund

Bank

of

America

NA

Foreign

Currency

$

288

$

(80)

$

208

$

288

$

(80)

$

208

$

—

$

208

Barclays

Bank

PLC

Foreign

Currency

4

(5)

(1)

Purchased

Interest

Rate

Swaptions

1,063

—

1,063

Written

Interest

Rate

Swaptions

—

(769)

$

1,067

$

(774)

$

293

$

(190)

$

103

BNP

Paribas

Foreign

Currency

2

—

2

$

2

$

—

$

2

$

—

$

2

Citigroup

Inc

Foreign

Currency

—

(67)

$

—

$

(67)

$

(67)

$

—

$

(67)

Deutsche

Bank

AG

Purchased

Interest

Rate

Swaptions

883

—

883

Written

Interest

Rate

Swaptions

—

(714)

$

883

$

(714)

$

169

$

(169)

$

—

Goldman

Sachs

&

Co

Foreign

Currency

3

—

3

$

3

$

—

$

3

$

—

$

3

HSBC

Securities

Inc

Foreign

Currency

—

(27)

$

—

$

(27)

$

(27)

$

—

$

(27)

JPMorgan

Chase

Foreign

Currency

59

(96)

(37)

Purchased

Interest

Rate

Swaptions

173

—

173

Written

Interest

Rate

Swaptions

—

(128)

$

232

$

(224)

$

8

$

(8)

$

—

Morgan

Stanley

&

Co

Foreign

Currency

92

(61)

31

Purchased

Interest

Rate

Swaptions

372

—

372

Written

Interest

Rate

Swaptions

—

(166)

$

464

$

(227)

$

237

$

(210)

$

27

Royal

Bank

of

Scotland

Foreign

Currency

37

—

37

$

37

$

—

$

37

$

—

$

37

Standard

Chartered

Bank,

Hong

Kong

Foreign

Currency

7

(7)

—

$

7

$

(7)

$

—

$

—

$

—

Toronto

Dominion

Bank

Foreign

Currency

8

—

8

$

8

$

—

$

8

$

—

$

8

UBS

AG

Foreign

Currency

—

$

—

$

—

$

—

$

—

$

—

Westpac

Banking

Corporation

Foreign

Currency

22

—

22

$

22

$

—

$

22

$

—

$

22

Total

OTC

$

3,013

$

(2,120)

$

893

$

(577)

$

316

Global

Multi-Strategy

Fund

Bank

of

America

NA

Foreign

Currency

841

(1,572)

(731)

$

841

$

(1,572)

$

(731)

$

731

$

—

Barclays

Bank

PLC

Foreign

Currency

—

$

—

$

—

$

—

$

—

$

—

BNP

Paribas

Foreign

Currency

113

(3)

110

$

113

$

(3)

$

110

$

—

$

110

Citigroup

Inc

Foreign

Currency

217

(15)

202

$

217

$

(15)

$

202

$

—

$

202

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

53

Cross

Trades.

The

Funds

may

engage

in

cross

trades.

A

cross

trade

is

a

purchase

or

sale

transaction

between

affiliated

portfolios

executed

directly

or

through

an

intermediary.

Mutual

funds

and

other

managed

portfolios

may

be

considered

affiliated

if

they

have

a

common

investment

advisor,

so

a

fund

may

be

considered

affiliated

with

any

portfolio

for

which

the

fund's

sub-advisor

acts

as

an

investment

advisor.

Such

transactions

are

permissible

provided

that

the

conditions

of

Rule

17a-7

under

the

1940

Act

are

satisfied.

For

the

year ended

2021,

none

of

the

Funds

had

material

cross

trades.

Deposits

with

Counterparty.

Cash

pledged

as

collateral

is

reflected

as

an

asset

on

the

statements

of

assets

and

liabilities

as

deposits

with

counterparty.

There

are

a

variety

of

security

types

which

require

varying

levels

of

pledged

collateral.

Customer

account

agreements

govern

cleared

derivatives

transactions

such

as

futures

and

certain

swap

agreements.

Such

transactions

require

posting

of

initial

margin

as

determined

by

each

relevant

clearing

agency

which

is

segregated

in

an

account

at

a

futures

commission

merchant

(“FCM”)

registered

with

the

Commodity

Futures

Trading

Commission.

International

Swaps

and

Derivatives

Association

(“ISDA”)

accounts

are

maintained

in

a

segregated

account

at

the

custodian

for

over-the-counter

("OTC")

derivatives.

Master

Securities

Forward

Transaction

Agreements

("MSFTA")

accounts

are

also

maintained

in

a

segregated

account

at

the

custodian

for

collateral

forward

currency

and

"to-be-announced"

("TBA")

securities.

Certain

of

the Funds may

pledge

cash

to

a

broker

for

securities

sold

short

and

repurchase

agreements.

As

of

2021,

deposits

with

counterparty

were

as

follows

(amounts

in

thousands):

Deposits

from

Counterparty.

Cash

received

from

a

counterparty

as

collateral

is

reflected

as

a

liability

on

the

statements

of

assets

and

liabilities

as

deposits

from

counterparty.

There

are

a

variety

of

security

types

which

require

varying

levels

of

pledged

collateral.

The

collateral

posted

to

the Funds

by

the

broker

is

received

in

the

fund’s

custodian

account.

As

of

2021,

deposits

from

counterparty

were

as

follows

(amounts

in

thousands):

Floating

Rate

Notes

Issued

in

Conjunction

with

Securities

Held.

Opportunistic

Municipal

Fund

has

entered

into

transactions

in

which

the

fund

transfers

fixed

rate

bonds

to

trusts

in

exchange

for

cash

and

residual

interests

in

the

trusts’

assets

and

cash

flows,

which

are

in

the

form

Assets

*

Liabilities

*

Net

Market

Value

of

OTC

Derivatives

Collateral

(Received)/

Pledged

†

Net

Exposure

Global

Multi-Strategy

Fund

(continued)

HSBC

Securities

Inc

Foreign

Currency

$

72

$

(158)

$

(86)

Total

Return

Swaps

142

—

142

$

214

$

(158)

$

56

$

—

$

56

JPMorgan

Chase

Equity

Basket

Swaps

—

(11)

Foreign

Currency

4

(292)

(288)

Total

Return

Swaps

26

(3)

23

$

30

$

(306)

$

(276)

$

276

$

—

Merrill

Lynch

Foreign

Currency

4

(12)

(8)

$

4

$

(12)

$

(8)

$

—

$

(8)

Morgan

Stanley

&

Co

Equity

Basket

Swaps

—

(607)

$

—

$

(607)

$

(607)

$

12

$

(595)

State

Street

Financial

Global

Markets

Foreign

Currency

21

—

21

$

21

$

—

$

21

$

—

$

21

Total

OTC

$

1,440

$

(2,673)

$

(1,233)

$

1,019

$

(214)

*

Represents

amount

of

offsetting

derivative

assets

or

liabilities

that

are

subject

to

an

enforceable

master

netting

agreement

or

similar

agreement

that

are

not

netted

against

the

gross

derivative

assets

or

liabilities

for

presentation

on

the

statements

of

assets

and

liabilities.

†

Collateral

pledged

or

received

may

be

in

excess

of

recognized

assets

or

liabilities,

see

the

schedules

of

investments.

FCM

(Futures

and

Cleared

Swaps)

ISDA

(OTC

Derivatives)

Shorts

Total

Deposits

with

Counterparty

Diversified

Real

Asset

Fund

$

4,107

$

—

$

—

$

4,107

Global

Multi-Strategy

Fund

14,128

7,556

73,383

95,067

International

Equity

Index

Fund

115

—

115

Spectrum

Preferred

and

Capital

Securities

Income

Fund

5,270

—

5,270

ISDA

(OTC

Derivatives)

Diversified

Real

Asset

Fund

$

610

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

54

of

Inverse

Floaters.

The

trusts

finance

the

purchases

of

the

fixed

rate

bonds

by

issuing

floating

rate

notes

to

third

parties.

The

fund

enters

into

shortfall

and

forbearance

agreements

with

the

trusts,

which

commit

the

fund

to

pay

the

trusts,

in

certain

circumstances,

the

difference

between

the

liquidation

value

of

the

fixed

rate

bonds

held

by

the

trusts

and

the

liquidation

value

of

the

floating

rate

notes

held

by

third

parties,

as

well

as

any

shortfalls

in

interest

cash

flows.

The

residual

interests

held

by

the

fund

(Inverse

Floaters)

include

the

right

of

the

fund

(1)

to

cause

the

holders

of

the

floating

rate

notes

to

tender

their

notes

at

par

at

the

rate

reset

date,

and

(2)

to

transfer

the

fixed

rate

bond

from

the

trusts

to

the

fund,

thereby

collapsing

the

trusts.

The

fund

accounts

for

the

transfer

of

bonds

to

the

trusts

as

secured

borrowings,

with

the

securities

transferred

remaining

in

the

fund’s

investment

assets,

and

the

rate

notes

reflected

as

fund

liabilities

under

the

caption

“floating

rate

notes

issued”

in

the

statements

of

assets

and

liabilities.

The

fund

holds

the

"floating

rate

notes

issued"

in

which

the

carrying

value,

including

accrued

interest,

approximates

fair

value

for

financial

statement

purposes.

As

of

year

end

,

the

“floating

rate

notes

issued”

payable

is

categorized

as

Level

2

within

the

disclosure

hierarchy.

The

balance

of

the

"floating

rate

notes

issued"

as

of

was $7,691,000.

The

average

outstanding

balance

for

the

liability

during

the

year

ended August

was

$6,921,000

at

a weighted

average

annual

interest

rate

of

0.80%.

The

notes

issued

by

the

trusts

have

interest

rates

that

reset

weekly,

and

the

floating

rate

note

holders

have

the

option

to

tender

their

notes

to

the

trusts

for

redemption

at

par

at

each

reset

date.

Foreign

Currency

Contracts.

Certain

of

the

Funds

may

be

subject

to

foreign

currency

exchange

rate

risk

in

the

normal

course

of

pursuing

such

Funds’

investment

objectives.

The

Funds

may

use

foreign

currency

to

gain

exposure

to,

or

hedge

against

changes

in

the

value

of

foreign

currencies.

Certain

of

the

Funds

enter

into

forward

to

purchase

and

sell

foreign

currencies

at

a

specified

future

date

at

a

fixed

exchange

rate.

Forward

foreign

currency

are

valued

at

the

forward

rate,

and

are

marked-to-market

daily.

The

change

in

fair

value

is

recorded

by

the

Funds

as

an

unrealized

gain

or

loss.

When

the

is

closed,

the

Funds

record

a

realized

gain

or

loss

equal

to

the

difference

between

the

value

of

the

at

the

time

it

was

opened

and

the

value

at

the

time

it

was

closed.

The

use

of

forward

foreign

currency

does

not

eliminate

the

fluctuations

in

underlying

prices

of

the

Funds’

portfolio

securities,

but

it

does

establish

a

rate

of

exchange

that

can

be

achieved

in

the

future.

Although

forward

foreign

currency

limit

the

risk

of

loss

due

to

a

decline

in

the

value

of

the

hedged

currency,

they

also

limit

any

potential

gain

that

might

result

should

the

value

of

the

currency

increase.

In

addition,

the

Funds

could

be

exposed

to

risks

if

the

counterparties

to

the

are

unable

to

meet

the

terms

of

their

or

if

the

value

of

the

currency

changes

unfavorably

to

the

U.S.

dollar

or

other

respective

currency.

Futures

Contracts.

The

Funds

are

subject

to

equity

price

risk,

interest

rate

risk,

and

foreign

currency

exchange

rate

risk

in

the

normal

course

of

pursuing

their

investment

objectives.

The

Funds

may

enter

into

futures

to

hedge

against

changes

in

or

to

gain

exposure

to,

change

in

the

value

of

equities,

interest

rates

and

foreign

currencies.

Initial

margin

deposits

are

made

by

cash

deposits

or

segregation

of

specific

securities

as

may

be

required

by

the

exchange

on

which

the

transaction

was

conducted.

Pursuant

to

the

a

fund

typically agrees

to

receive

from

or

pay

to

the

broker,

an

amount

of

cash

equal

to

the

daily

fluctuation

in

the

value

of

the

contract.

Such

receipts

or

payments

are

known

as

“variation

margin”

and

are

recorded

by

the

fund

as

a

variation

margin

receivable

or

payable

on

financial

derivative

instruments.

For

those

where

daily

variation

margin

payments

are

not

received

from

or

paid

to

the

broker,

the

cumulative

unrealized

gains

or

losses

are

included

in

variation

margin

receivable

or

payable

on

financial

derivative

instruments.

Futures

are

marked

to

market

daily

at

the

closing

settlement

price

or

in

the

absence

of

such

a

price,

the

most

recent

quoted

bid

price.

If

there

are

no

quotations

available,

the

security

is

valued

at

the

last

available

closing

settlement

price.

During

the

period

the

futures

are

open,

daily

changes

in

the

fair

value

of

the

are

recognized

as

unrealized

gains

or

losses.

These

unrealized

gains

or

losses

are

included

as

a

component

of

total

distributable

earnings

(accumulated

loss)

on

the

statements

of

assets

and

liabilities.

When

the

are

closed,

the

fund

recognizes

a

realized

gain

or

loss

equal

to

the

difference

between

the

proceeds

from,

or

cost

of,

the

closing

transaction

and

the

fund’s

cost

basis

in

the

contract.

There

is

minimal

counterparty

credit

risk

to

the

Funds

because

futures

are

exchange

traded

and

the

exchange’s

clearinghouse,

as

counterparty

to

all

exchange

traded

futures,

guarantees

the

futures

against

default.

Long

equity

futures

are

used

to

obtain

market

exposure

for

the

cash

balances

that

are

maintained

by

certain

of

the

Funds

and

the

notional

values

of

the

futures

will

vary

in

accordance

with

changing

cash

balances.

Long

and

short

U.S.

Treasury

futures

are

used

to

obtain

interest

rate

exposure

in

order

to

manage

duration

of

Diversified

Real

Asset

Fund

and

Global

Multi-Strategy

Fund.

The

Spectrum

Preferred

and

Capital

Securities

Income

Fund

uses

long

and

short

U.S.

Treasury

futures

and

options

on

those

listed

U.S.

Treasury

future

to

mitigate

interest

rate

volatility

and

for

income

generation.

The

notional

values

of

the

futures

will

vary

in

accordance

with

changing

duration

of

these

funds.

Illiquid

Securities.

Illiquid

securities

generally

cannot

be

sold

or

disposed

of

in

the

ordinary

course

of

business

(within

seven

calendar

days)

at

approximately

the

value

at

which

each

of

the

Funds

has

valued

the

investments.

This

may

have

an

adverse

effect

on

each

of

the

Funds’

ability

to

dispose

of

particular

illiquid

securities

at

fair

value

and

may

limit

each

of

the

Funds’

ability

to

obtain

accurate

market

quotations

for

purposes

of

valuing

the

securities.

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

55

Indemnification.

Under

the

Fund’s

by-laws,

present

and

past

officers,

directors,

and

employees

are

indemnified

against

certain

liabilities

arising

out

of

the

performance

of

their

duties.

In

addition,

in

the

normal

course

of

business,

the

Fund

may

enter

into

a

variety

of

that

may

contain

representations

and

warranties

which

provide

general

indemnifications.

The

Fund’s

maximum

exposure

under

these

arrangements

is

unknown,

as

this

would

involve

future

claims

that

may

be

made

against

the

Fund.

Inflation-Indexed

Bonds.

Certain

of

the

Funds

may

invest

in

inflation-indexed

bonds.

Inflation-indexed

bonds

are

fixed-income

securities

whose

principal

value

is

periodically

adjusted

to

the

rate

of

inflation.

The

interest

rate

on

these

bonds

is

generally

fixed

at

issuance

at

a

rate

lower

than

typical

bonds.

Over

the

life

of

an

inflation-indexed

bond,

however,

interest

will

be

paid

based

on

a

principal

value,

which

is

adjusted

for

inflation.

Any

increase

or

decrease

in

the

principal

amount

of

an

inflation-indexed

bond

will

be

included

as

interest

income

on

the

statements

of

operations,

even

though

the

Funds

would

not

receive

the

principal

until

maturity.

Options

Contracts.

During

the

year, Diversified

Real

Asset

Fund,

Global

Multi-Strategy

Fund,

and

Spectrum

Preferred

and

Capital

Securities

Income

Fund

wrote

call

and

put

options

on

swaps,

securities,

indices

and

currencies

they

own

or

in

which

they

may

invest

for

both

hedging

and

non-hedging

purposes.

Writing

put

options

tends

to

increase

a

fund’s

exposure

to

the

underlying

instrument.

Writing

call

options

tends

to

decrease

a

fund’s

exposure

to

the

underlying

instrument.

When

a

fund

writes

a

call

or

put

option,

an

amount

equal

to

the

premium

received

is

recorded

as

a

liability

and

subsequently

marked

to

market

to

reflect

the

current

value

of

the

option

written.

These

liabilities

are

reflected

as

options

written

on

the

statements

of

assets

and

liabilities.

Premiums

received

from

writing

options

which

expire

are

treated

as

realized

gains.

Premiums

received

from

writing

options

which

are

exercised

or

closed

are

added

to

the

proceeds

or

offset

against

amounts

paid

on

the

underlying

swap,

security,

index

or

currency

transaction

to

determine

the

realized

gain

or

loss.

A

fund,

as

a

writer

of

an

option,

has

no

control

over

whether

the

underlying

swap,

security,

index

or

currency

may

be

sold

(call)

or

purchased

(put)

and

as

a

result

bears

the

market

risk

of

an

unfavorable

change

in

the

price

of

the

swap,

security,

index

or

currency

underlying

the

written

option.

There

is

the

risk

a

fund

may

not

be

able

to

enter

into

a

closing

transaction

because

of

an

illiquid

market.

The

maximum

potential

amount

of

future

payments

(undiscounted)

that

a

fund

as

a

writer

of

put

options

could

be

required

to

make

is

equal

to

the

notional

amount

multiplied

by

the

exercise

price

as

shown

in

the

schedules

of

investments

.

A

fund

may

also

purchase

put

and

call

options.

Purchasing

call

options

tends

to

increase

a

fund’s

exposure

to

the

underlying

instrument.

Purchasing

put

options

tends

to

decrease

a

fund’s

exposure

to

the

underlying

instrument.

A

fund

pays

a

premium

which

is

included

on

the

fund’s

statements

of

assets

and

liabilities

as

an

investment

and

subsequently

marked

to

market

to

reflect

the

current

value

of

the

option.

Premiums

paid

for

purchasing

options

which

expire

are

treated

as

realized

losses.

The

risk

associated

with

purchasing

put

and

call

options

is

limited

to

the

premium

paid.

Premiums

paid

for

purchasing

options

which

are

exercised

or

closed

are

added

to

the

amounts

paid

or

offset

against

the

proceeds

on

the

underlying

swap,

security,

index

or

currency

transaction

to

determine

the

realized

gain

or

loss.

Details

of

options

open

at year

end

are

included

in

the

Funds'

schedules

of

investments.

Private

Investments

in

Public

Equity.

The

Funds

may

invest

in

private

investments

in

public

equity

(“PIPEs”)

which

are

issued

by

a

company

in

the

secondary

market

as

a

means

of

raising

capital.

In

connection

with

PIPEs,

the

Funds

may

enter

into

unfunded

commitments.

Commitments

may

be

subject

to

various

contingencies

and

are

recognized

as

a

financial

instrument

when

the

commitment

is

legally

binding.

These

contingencies

are

considered

in

the

valuation

of

the

commitments.

The

Funds

are

obligated

to

fund

these

commitments

when

the

contingencies

are

met

and

therefore,

the

Funds

must

have

funds

sufficient

to

cover

its

obligation.

Commitments

are

marked

to

market

daily

and

the

unrealized

gain

or

loss

is

shown

as

a

separate

line

item

called

unrealized

gain

or

loss

on

unfunded

commitments

on

the

statements

of

assets

and

liabilities

and

included

in

the

net

change

in

unrealized

appreciation/(depreciation)

of

investments

on

the

statements

of

operations,

as

applicable.

Commitments

are

typically

categorized

as

Level

2

within

the

disclosure

hierarchy.

As

of

2021,

the

Funds

had

no

unfunded

commitments

in

connection

with

PIPEs.

Rebates.

Subject

to

best

execution,

the

Funds

may

direct

certain

portfolio

transactions

to

brokerage

firms

that,

in

turn,

have

agreed

to

rebate

a

portion

of

the

commission

to

the

Funds

in

cash.

Commission

rebates

are

included

as

a

component

of

realized

gain

from

investment

transactions

in

the

statements

of

operations.

Repurchase

Agreements.

The

Funds

may

invest

in

repurchase

agreements

that

are

fully

collateralized,

typically

by

U.S.

government

or

U.S.

government

agency

securities.

It

is

the

Fund's

policy

that

the

counterparties’

custodian

takes

possession

of

the

underlying

collateral

securities.

The

fair

value

of

the

collateral

is

at

all

times

at

least

equal

to

the

total

amount

of

the

repurchase

obligation.

In

the

event

of

default

on

the

obligation

to

repurchase,

the

Funds

have

the

right

to

liquidate

the

collateral

and

apply

the

proceeds

in

satisfaction

of

the

obligation.

In

the

event

the

seller

of

a

repurchase

agreement

defaults,

the

Funds

could

experience

delays

in

the

realization

of

the

collateral.

In

addition,

Global

Multi-Strategy

Fund

may

enter

into

repurchase

agreements

with

certain

counterparties

that

are

collateralized

by

assets

other

than

U.S.

government

or

U.S.

government

agency

securities.

The

collateral

pledged

by

the

counterparty

under

these

repurchase

agreements

is

maintained

in

a

segregated

account

at

the

counterparty’s

custodian.

After

entering

into

the

repurchase

agreement,

the

fund

may

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

56

sell

short

the

security

pledged

by

the

counterparty

as

collateral

in

anticipation

of

a

decline

in

market

value.

Upon

the

settlement

of

the

short

sale,

the

fund

will

unwind

the

repurchase

agreement.

Although

the

repurchase

agreements

are

typically

open-ended

through

the

maturity

date

of

the

collateral,

the

fund

has

a

right

to

terminate

the

repurchase

agreement

at

any

time

with

two

days’

notice.

During

periods

of

high

demand

for

the

collateral

security,

the

fund

may

also

pay

the

counterparty

a

fee

and

the

amount

is

recorded

as

interest

expense

on

the

statements

of

operations.

Global

master

repurchase

agreements

govern

the

repurchase

and

reverse

repurchase

transactions

between

the

fund

and

the

counterparty.

Collateral

requirements

for

certain

counterparties

may

be

determined

on

a

total

exposure

basis,

rather

than

on

an

individual

repurchase

agreement

or

reverse

repurchase

agreement

basis

in

order

to

determine

the

collateral

to

be

received

or

pledged.

Restricted

Securities.

Certain

of

the

Funds

may

invest

in

securities

that

are

subject

to

legal

or

contractual

restrictions

on

resale.

These

securities

generally

may

be

resold

in

transactions

exempt

from

registration

or

to

the

public

if

the

securities

are

registered.

Disposal

of

these

securities

may

involve

time-consuming

negotiations

and

expense,

and

prompt

sale

at

an

acceptable

price

may

be

difficult.

Reverse

Repurchase

Agreements.

Global

Multi-Strategy

Fund

entered

into

reverse

repurchase

agreements

during

the

fiscal

year.

Under

a

reverse

repurchase

agreement,

a

fund

sells

securities

and

agrees

to

repurchase

them

at

a

specified

date

and

price.

Reverse

repurchase

agreements

are

considered

to

be

borrowings

by

the

fund,

and

are

subject

to

the

fund’s

restrictions

on

borrowing.

Reverse

repurchase

agreements

may

increase

the

volatility

of

a

fund

and

involve

the

risk

that

interest

costs

on

money

borrowed

may

exceed

the

return

on

securities

purchased

with

the

borrowed

money.

While

a

reverse

repurchase

agreement

is

outstanding,

the

fund

will

maintain

cash

or

appropriate

liquid

assets

to

cover

its

obligation

under

the

agreement.

The

fund

will

enter

into

reverse

repurchase

agreements

only

with

parties

that

the

sub-advisor

deems

creditworthy.

The

fund

must

segregate

assets

in

an

amount

equal

to

the

amount

the

fund

owes

pursuant

to

the

terms

of

the

reverse

repurchase

agreements.

Reverse

repurchase

agreements

are

shown

as

a

separate

line

item

on

the

statements

of

assets

and

liabilities.

Interest

payments

made

are

shown

as

reverse

repurchase

agreement

interest

expense

on

the

statements

of

operations.

The

fund

may

hold

reverse

repurchase

agreements

in

which

the

carrying

value,

including

accrued

interest,

approximates

fair

value

for

financial

statement

purposes.

The

average

amount

of

borrowings

outstanding

during

the

year

ended

was

$108,817,000

at

a

weighted

average

interest

rate

of

0.160%.

The

breakdown

of

obligations

owned,

security

type

sold

and

remaining

maturity

for

the

reverse

repurchase

agreements

are

included

in

the

schedules

of

investments,

if

any.

Global

Multi-Strategy

Fund

did

not

hold

reverse

repurchase

agreements

as

of

2021.

Securities

Lending.

As

footnoted

in

the

schedules

of

investments,

certain

of

the

Funds

may

lend

portfolio

securities

to

approved

brokerage

firms

to

earn

additional

income.

The

Funds

receive

collateral,

in

the

form

of

cash,

against

the

loaned

securities.

During

the

period

of

the

loan,

the

borrower

must

maintain

collateral

in

an

amount

not

less

than

102%

of

the

market

value

of

the

domestic

and

foreign

fixed

income

loaned

securities

and

105%

of

the

market

value

of

the

foreign

equity

loaned

securities.

The

market

value

of

the

loaned

securities

is

determined

at

the

close

of

business

of

the

Funds

and

any

additional

required

collateral

is

delivered

to

the

Funds

on

the

day.

The

cash

collateral

received

is

usually

invested

in

an

SEC-registered

money

market

mutual

fund

and

the

Funds

could

realize

a

loss

on

such

investments.

Further,

the

Funds

could

experience

a

delay

in

recovering

their

securities

and

possible

loss

of

income

or

value

if

the

borrower

fails

to

return

them.

Securities

lending

income,

net

of

is

shown

on

the

statements

of

operations.

Senior

Floating

Rate

Interests.

The

Funds

may

invest

in

senior

floating

rate

interests

(bank

loans).

Senior

floating

rate

interests

typically hold

the

most

senior

position

in

the

capital

structure

of

a

business

entity

(the

“Borrower”),

are

secured

by

specific

collateral

and

have

a

claim

on

the

assets

and/or

stock

of

the

Borrower

that

is

senior

to

that

held

by

subordinated

debtholders

and

stockholders

of

the

Borrower.

Senior

floating

rate

interests

are

typically

structured

and

administered

by

a

financial

institution

that

acts

as

the

agent

of

the

lenders

participating

in

the

senior

floating

rate

interest.

Borrowers

of

senior

floating

rate

interests

are

typically

rated

below-investment-grade,

which

means

they

are

more

likely

to

default

than

investment-grade

loans.

A

default

could

lead

to

non-payment

of

income

which

would

result

in

a

reduction

of

income

to

the

fund

and

there

can

be

no

assurance

that

the

liquidation

of

any

collateral

would

satisfy

the

Borrower’s

obligation

in

the

event

of

non-payment

of

scheduled

interest

or

principal

payments,

or

that

such

collateral

could

be

readily

liquidated.

Senior

floating

rate

interests

pay

interest

at

rates

which

are

periodically

reset

by

reference

to

a

base

lending

rate

plus

a

spread.

These

base

lending

rates

are

generally

the

prime

rate

offered

by

a

designated

U.S.

bank

or

the

LIBOR

rate.

Senior

floating

rate

interests

generally

are

subject

to

mandatory

and/or

optional

prepayment.

Because

of

these

mandatory

prepayment

conditions

and

because

there

may

be

significant

economic

incentives

for

the

Borrower

to

repay,

prepayments

of

senior

floating

rate

interests

may

occur.

As

a

result,

the

actual

remaining

maturity

of

senior

floating

rate

interests

may

be

substantially

less

than

stated

maturities

shown

in

the

schedules

of

investments.

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

57

In

connection

with

the

senior

floating

rate

interests,

the

Funds

may

also

enter

into

unfunded

loan

commitments.

All

or

a

portion

of

the

loan

commitments

may

be

unfunded.

The

Funds

are

obligated

to

fund

these

loan

commitments

at

the

Borrower’s

discretion.

Therefore,

the

Funds

must

have

funds

sufficient

to

cover

their

contractual

obligation.

Unfunded

loan

commitments

are

marked

to

market

daily

and

the

unrealized

gain

or

loss

is

shown

as

a

separate

line

item

called

unrealized

gain

or

loss

on

unfunded

commitments

on

the

statements

of

assets

and

liabilities

and

included

in

the

net

change

in

unrealized

appreciation/(depreciation)

of

investments

on

the

statements

of

operations,

as

applicable.

As

of

year

end,

the

unfunded

loan

commitments

are

categorized

as

Level

2

within

the

disclosure

hierarchy.

As

of

2021,

the

Funds

had

unfunded

loan

commitments

as

follows

(amounts

in

thousands):

Short

Sales.

Certain

of

the

Funds

entered

into

short

sales

transactions

during

the

period.

A

short

sale

is

a

transaction

in

which

a

fund

sells

a

security

it

does

not

own

as

a

hedge

against

some

of

its

long

positions

and/or

in

anticipation

of

a

decline

in

the

market

price

of

the

security.

The

fund

must

borrow

the

security

sold

short

and

deliver

it

to

the

broker

dealer

which

made

the

short

sale.

A

security

sold

in

a

short

sale

transaction

and

the

interest

or

dividend

payable

on

the

security

if

any,

is

reflected

as

a

liability

on

the

statements

of

assets

and

liabilities.

The

fund

is

obligated

to

pay

any

interest

or

dividends

received

on

the

borrowed

securities.

Interest

accrued

and

dividends

declared

on

short

positions

are

recorded

as

an

expense

and,

if

any,

appear

as

dividends

and

interest

on

shorts

on

the

statements

of

operations.

A

fund

is

obligated

to

deliver

the

security

at

the

market

price

at

the

time

the

short

position

is

closed.

Possible

losses

from

short

sales

may

be

unlimited.

The

fund

is

required

to

pledge

cash

or

securities

to

the

broker

as

collateral

for

securities

sold

short.

Collateral

requirements

are

calculated

daily

based

on

the

current

market

value

of

the

short

positions.

Cash

deposited

with

the

broker

for

collateral

is

included

in

deposits

with

counterparty

on

the

statements

of

assets

and

liabilities

and

securities

segregated

as

collateral

are

footnoted

in

the

schedules

of

investments.

The

fund

may

pay

broker’s

fees

on

the

borrowed

securities

and

may

also

pay

a

financing

charge

for

the

difference

in

the

market

value

of

the

short

position

and

cash

collateral

deposited

with

the

broker.

These

fees

are

included

as

short

sale

fees

on

the

statements

of

operations.

Swap

Agreements.

Diversified

Real

Asset

Fund

and

Global

Multi-Strategy

Fund

invested

in

swap

agreements

during

the

period.

Swap

agreements

are

negotiated

agreements

between

a

fund

and

a

counterparty

to

exchange

a

series

of

cash

flows

at

specified

intervals

based

upon,

or

calculated

by

reference

to,

changes

in

specified

prices

or

rates

for

a

specified

amount

of

an

underlying

asset.

A

fund

may

enter

into

credit

default,

currency,

interest

rate,

or

total

return

swap

agreements

to

manage

its

exposure

to

credit,

currency,

interest

rate,

or

market

risk.

In

connection

with

these

agreements,

securities

may

be

identified

as

collateral

in

accordance

with

the

terms

of

the

respective

swap

agreements

to

provide

assets

of

value

and

recourse

in

the

event

of

default

or

bankruptcy/insolvency.

Swap

agreements

are

valued

through

a

pricing

service

or

using

procedures

established

and

periodically

reviewed

by

the

Fund’s

Board

of

Directors.

Centrally

cleared

swaps

are

valued

using

the

preliminary

last

traded

price

from

the

trading

exchange.

OTC

swaps

are

modeled

taking

into

account

the

counterparties’

creditworthiness

and

using

a

series

of

techniques,

including

simulation

models.

Changes

in

value

are

recorded

as

unrealized

gain

or

loss

which

is

included

as

a

component

of

total

distributable

earnings

(accumulated

loss)

on

the

statements

of

assets

and

liabilities.

Equity

basket

swaps

are

valued

using

the

closing

price

of

each

of

the

underlying

securities

multiplied

by

the

holdings

of

each

equity

security.

Upon

termination

of

swap

agreements,

the

Funds

recognize

a

realized

gain

or

loss.

Net

periodic

payments

to

be

received

or

paid

are

accrued

daily

and

are

recorded

in

the

statements

of

operations

as

realized

gains

or

losses.

Payments

received

or

made

at

the

beginning

of

the

measurement

period

are

reflected

as

such

on

the

statements

of

assets

and

liabilities

and

represent

payments

made

or

received

upon

entering

into

the

swap

agreement

to

compensate

for

differences

between

the

stated

terms

of

the

swap

agreement

and

prevailing

market

conditions

(credit

spreads,

interest

rates,

and

other

relevant

factors).

These

upfront

payments

are

amortized

daily

over

the

term

of

the

swap

agreement

as

realized

gains

or

losses

on

the

statements

of

operations.

Notional

principal

amounts

are

used

to

express

the

extent

of

involvement

in

these

agreements.

Risks

may

exceed

amounts

shown

on

the

statements

of

assets

and

liabilities.

These

risks

include

changes

in

the

returns

of

the

underlying

instruments,

unfavorable

interest

rate

fluctuation,

the

counterparty

to

the

agreements

may

default

on

its

obligation

to

perform

or

disagree

as

to

the

meaning

of

contractual

terms

in

the

agreements,

and

the

possible

lack

of

liquidity

with

respect

to

the

swap

agreements.

The

Funds

and

any

counterparty

are

required

to

maintain

an

agreement

that

requires

the

Funds

and

that

counterparty

to

monitor

the

net

fair

value

of

all

derivative

transactions

entered

into

pursuant

to

the

between

the

Funds

and

such

counterparty.

If

the

net

fair

value

of

such

derivatives

transactions

between

the

Funds

and

that

counterparty

exceeds

a

certain

threshold

(as

defined

in

the

agreement),

the

Funds

or

the

counterparty

are

required

to

post

cash

and/or

securities

as

collateral.

Fair

values

of

derivatives

transactions

presented

in

the

financial

Unfunded

Loan

Commitment

Net

Unrealized

Gain/(Loss)

Diversified

Real

Asset

Fund

$

3,382

$

236

Global

Multi-Strategy

Fund

663

(2

7

)

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

58

statements

are

not

netted

with

the

fair

values

of

other

derivatives

transactions

or

with

any

collateral

amounts

posted

by

the

Funds

or

any

counterparty.

Credit

default

swaps

involve

commitments

to

pay

a

fixed

rate

at

a

predetermined

frequency

in

exchange

for

a

lump

sum

payment

if

a

“credit

event”,

as

defined

in

the

agreement,

affecting

a

third

party

occurs.

Credit

events

may

include

a

failure

to

pay

interest,

bankruptcy,

restructuring,

or

other

event

as

defined

in

the

agreement.

A

“buyer”

of

credit

protection

agrees

to

pay

a

counterparty

to

assume

the

credit

risk

of

an

issuer

upon

the

occurrence

of

a

credit

event.

The

“seller”

of

the

protection

receives

periodic

payments

and

agrees

to

assume

the

credit

risk

of

an

issuer

upon

the

occurrence

of

a

credit

event.

As

the

seller

of

credit

protection,

a

fund

would

add

leverage

to

its

portfolio

because,

in

addition

to

its

total

net

assets,

a

fund

would

be

subject

to

investment

exposure

on

the

notional

amount

of

the

swap.

If

a

fund

is

a

seller

of

protection

and

a

credit

event

occurs,

as

defined

under

the

terms

of

that

particular

swap

agreement,

the

fund

will

either

(i)

pay

to

the

buyer

of

protection

an

amount

equal

to

the

notional

amount

of

the

swap

and

take

delivery

of

the

referenced

obligation,

other

deliverable

obligations

or

underlying

securities

comprising

the

referenced

index

or

(ii)

pay

a

net

settlement

amount

in

the

form

of

cash

or

securities

equal

to

the

notional

amount

of

the

swap

less

the

recovery

value

of

the

referenced

obligation

or

underlying

securities

comprising

the

referenced

index.

If

a

fund

is

a

buyer

of

protection

and

a

credit

event

occurs,

as

defined

under

the

terms

of

that

particular

swap

agreement,

a

fund

will

either

(i)

receive

from

the

seller

of

protection

an

amount

equal

to

the

notional

amount

of

the

swap

and

deliver

the

referenced

obligation,

other

deliverable

obligations

or

underlying

securities

comprising

the

referenced

index

or

(ii)

receive

a

net

settlement

amount

in

the

form

of

cash

or

securities

equal

to

the

notional

amount

of

the

swap

less

the

recovery

value

of

the

referenced

obligation

or

underlying

securities

comprising

the

referenced

index.

Credit

default

swap

agreements

on

credit

indices

involve

one

party

making

a

stream

of

payments

to

another

party

in

exchange

for

the

right

to

receive

a

specified

return

in

the

event

of

a

write-down,

principal

shortfall,

interest

shortfall

or

default

of

all

or

part

of

the

referenced

entities

comprising

the

credit

index.

A

credit

index

is

a

basket

of

credit

instruments

or

exposures

designed

to

be

representative

of

some

part

of

the

credit

market

as

a

whole.

These

indices

are

made

up

of

reference

credits

that

are

judged

by

a

poll

of

dealers

to

be

the

most

liquid

entities

in

the

credit

default

swap

market

based

on

the

sector

of

the

index.

Components

of

the

indices

may

include,

but

are

not

limited

to,

investment

grade

securities,

high

yield

securities,

asset

backed

securities,

emerging

markets,

and/or

various

credit

ratings

within

each

sector.

Credit

indices

are

traded

using

credit

default

swaps

with

standardized

terms

including

a

fixed

spread

and

standard

maturity

dates.

An

index

credit

default

swap

references

all

the

names

in

the

index,

and

if

there

is

a

default,

the

credit

event

is

settled

based

on

that

name’s

weight

in

the

index.

The

composition

of

the

indices

changes

periodically,

usually

every

six

months,

and

for

most

indices,

each

name

has

an

equal

weight

in

the

index.

A

fund

may

use

credit

default

swaps

on

credit

indices

to

hedge

a

portfolio

of

credit

default

swaps

or

bonds,

which

is

less

expensive

than

it

would

be

to

buy

many

credit

default

swaps

to

achieve

a

similar

effect.

Credit

default

swaps

on

indices

are

benchmarks

for

protecting

investors

owning

bonds

against

default,

and

traders

use

them

to

speculate

on

changes

in

credit

quality.

Credit

default

swap

agreements

on

corporate

issues

or

sovereign

issues

involve

one

party

making

a

stream

of

payments

to

another

party

in

exchange

for

the

right

to

receive

a

specified

return

in

the

event

of

a

default

or

other

credit

event.

If

a

credit

event

occurs

and

cash

settlement

is

not

elected,

a

variety

of

other

deliverable

obligations

may

be

delivered

in

lieu

of

the

specific

referenced

obligation.

The

ability

to

deliver

other

obligations

may

result

in

a

cheapest-to-deliver

option

(the

buyer

of

protection’s

right

to

choose

the

deliverable

obligation

with

the

lowest

value

following

a

credit

event).

The

Funds

may

use

credit

default

swaps

on

corporate

issues

or

sovereign

issues

of

an

emerging

country

to

provide

a

measure

of

protection

against

defaults

of

the

issuers

(i.e.,

to

reduce

risk

where

the

Funds

own

or

have

exposure

to

the

referenced

obligation).

For

credit

default

swap

agreements

on

asset-backed

securities

and

credit

indices,

the

quoted

market

prices

and

resulting

values

serve

as

the

indicator

of

the

current

status

of

the

payment/performance

risk.

Wider

credit

spreads

and

increasing

values,

in

absolute

terms

when

compared

to

the

notional

amount

of

the

swap,

represent

a

deterioration

of

the

referenced

entity’s

credit

soundness

and

a

greater

likelihood

or

risk

of

default

or

other

credit

event

occurring

as

defined

under

the

terms

of

the

agreement.

The

maximum

potential

amount

of

future

payments

(undiscounted)

that

a

fund

as

a

seller

of

protection

could

be

required

to

make

under

a

credit

default

swap

agreement

would

be

an

amount

equal

to

the

notional

amount

of

the

agreement.

Notional

amounts

of

all

credit

default

swap

agreements

outstanding

as

of

for

which

a

fund

is

the

seller

of

protection

are

disclosed

in

the

footnotes

to

the

schedules

of

investments.

These

potential

amounts

would

be

partially

offset

by

any

recovery

values

of

the

respective

referenced

obligations,

upfront

payments

received

upon

entering

into

the

agreement,

or

net

amounts

received

from

the

settlement

of

buy

protection

credit

default

swap

agreements

entered

into

by

a

fund

for

the

same

referenced

entity

or

entities.

Synthetic

futures,

which

are

total

return

swaps

on

futures

along

with

equity

basket

swaps

generally

involve

the

commitment

to

receive

positive

returns

or

pay

negative

returns

on

a

specified

reference

security,

basket

of

securities,

security

index

or

index

component,

without

actually

owning

the

underlying

position.

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

59

Currency

swap

agreements

involve

the

commitment

to

exchange

cash

flows

on

a

notional

amount

based

on

changes

in

the

relative

values

of

the

specified

currencies.

Interest

rate

swaps

involve

the

commitment

to

exchange

fixed

or

floating

rate

cash

flows

based

on

changes

in

the

value

of

a

specific

reference

rate.

Certain

collateral

amounts

relate

to

exchange

cleared

swaps

which

are

not

subject

to

Master

Netting

Agreements

with

counterparties.

To

Be

Announced

Securities.

The

Funds

may

trade

portfolio

securities

on

a

TBA

or

when-issued

basis.

In

a

TBA

or

when-issued

transaction,

the

Funds

commit

to

purchase

or

sell

securities

for

which

all

specific

information

is

not

known

at

the

time

of

the

trade.

Securities

purchased

on

a

TBA

or

when-issued

basis

are

not

settled

until

they

are

delivered

to

the

Funds,

normally

15

to

30

days

later.

These

transactions

are

subject

to

market

fluctuations

and

their

current

value

is

determined

in

the

same

manner

as

for

other

portfolio

securities.

Underlying

Funds.

An

underlying

fund

to

a

fund

of

funds

may

experience

relatively

large

redemptions

or

purchases

as

the

fund

of

funds

periodically

reallocates

or

rebalances

its

assets.

These

transactions

may

accelerate

the

realization

of

taxable

income

if

sales

of

portfolio

securities

result

in

gains

and

could

increase

transaction

costs.

In

addition,

when

a

fund

of

funds

reallocates

or

redeems

significant

assets

away

from

an

underlying

fund,

the

loss

of

assets

to

the

underlying

fund

could

result

in

increased

expense

ratios

for

that

fund.

The

Manager

is

the

advisor

to

the

Fund,

Principal

Variable

Funds,

Inc.,

Principal

Exchange-Traded

Funds,

and

other

asset

allocation

programs.

The

Manager is

committed

to

minimizing

the

potential

impact

of

underlying

fund

risk

to

the

extent

consistent

with

pursuing

the

investment

objectives

of

the

fund

of

funds

which

it

manages.

Each

may

face

conflicts

of

interest

in

fulfilling

its

responsibilities

to

all

such

funds.

Shareholder

reports

for

other

series

of

the

Fund,

Principal

Variable

Funds,

Inc.,

Principal

Exchange-Traded

Funds

can

be

found

at

www.principalfunds.com.

As

of

2021,

series

of

the

Fund

and

Principal

Variable

Funds,

Inc.

owned

the

following

percentages,

in

the

aggregate,

of

the

outstanding

shares

of

the

Funds

listed

below:

U.S.

Government

Agencies

or

Government-Sponsored

Enterprises.

Certain

of

the

Funds

may

invest

in

U.S.

Government

agencies

or

government-sponsored

enterprises.

U.S.

Government

securities

are

obligations

of,

and

in

certain

cases,

guaranteed

by,

the

U.S.

Government

or

its

agencies.

The

U.S.

Government

does

not

guarantee

the

net

asset

value

of

the

Funds’

shares.

Some

U.S.

Government

securities

such

as

treasury

bills,

notes

and

bonds,

and

securities

guaranteed

by

the

Government

National

Mortgage

Association

(“GNMA”)

are

supported

by

the

full

faith

and

credit

of

the

U.S.

Government.

Other

securities,

such

as

those

of

the

Federal

Home

Loan

Bank,

are

supported

by

the

right

of

the

issuer

to

borrow

from

the

U.S.

Department

of

the

Treasury.

Still

other

securities,

such

as

those

of

the

Federal

National

Mortgage

Association

(“FNMA”),

are

supported

by

the

discretionary

authority

of

the

U.S.

Government

to

purchase

the

agency’s

obligations.

Government

(those

not

backed

by

the

full

faith

and

credit

of

the U.S.

Government)

include

the FNMA

and

the

Federal

Home

Loan

Mortgage

Corporation

(“FHLMC”).

The

FNMA

is

a

government

sponsored

corporation,

the

common

stock

of

which

is

owned

entirely

by

private

stockholders.

The

FNMA

purchases

conventional

residential

mortgages

from

a

list

of

approved

seller/servicers

which

include

state

and

federally

chartered

savings

and

loan

associations,

mutual

savings

banks,

commercial

banks,

credit

unions,

and

mortgage

bankers.

Pass-through

securities

issued

by

the

FNMA

are

guaranteed

as

to

the

timely

payment

of

principal

and

interest

by

the

FNMA,

but

are

not

backed

by

the

full

faith

and

credit

of

the

U.S.

Government.

The

FHLMC

issues

participation

certificates,

which

are

pass-through

securities,

each

representing

an

undivided

interest

in

a

pool

of

residential

mortgages.

The

FHLMC

guarantees

the

timely

payment

of

interest

and

ultimate

collection

of

principal,

but

participation

certificates

are

not

backed

by

the

full

faith

and

credit

of

the

U.S.

Government.

Percentage

of

Outstanding

Shares

Owned

Blue

Chip

Fund

37.64

%

Bond

Market

Index

Fund

70.93

Diversified

Real

Asset

Fund

27.96

Edge

MidCap

Fund

67.79

International

Equity

Index

Fund

54.20

International

Small

Company

Fund

83.46

Origin

Emerging

Markets

Fund

51.35

Small-

MidCap

Dividend

Income

Fund

2.70

Spectrum

Preferred

and

Capital

Securities

Income

Fund

8.87

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

60

Derivatives.

The

following

tables

provide

information

about

where

in

the

statements

of

assets

and

liabilities

and

statements

of

operations

information

about

derivatives

can

be

found

(amounts

in

thousands):

Asset

Derivatives

Liability

Derivatives

Derivatives

not

accounted

for

as

hedging

instruments

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Statement

of

Assets

and

Liabilities

Location

Fair

Value

Diversified

Real

Asset

Fund

Commodity

Receivables,

Total

distributable

earnings

(accumulated

loss)

$

17,904

*

Payables,

Total

distributable

earnings

(accumulated

loss)

$

10,544

*

Foreign

exchange

Receivables

$

522

Payables

$

343

Interest

rate

Receivables,

Total

distributable

earnings

(accumulated

loss)

$

9,552

*

Payables,

Total

distributable

earnings

(accumulated

loss)

$

8,160

*

Total

$

27,978

*

$

19,047

*

Global

Multi-Strategy

Fund

Commodity

Receivables,

Total

distributable

earnings

(accumulated

loss)

$

1,128

*

Payables,

Total

distributable

earnings

(accumulated

loss)

$

481

*

Credit

Receivables,

Total

distributable

earnings

(accumulated

loss)

$

—

Payables,

Total

distributable

earnings

(accumulated

loss)

$

20

*

Equity

Receivables,

Total

distributable

earnings

(accumulated

loss)

$

2,080

*

Payables,

Total

distributable

earnings

(accumulated

loss)

$

1,335

*

Foreign

exchange

Receivables

$

1,272

Payables

$

2,058

*

Interest

rate

Receivables,

Total

distributable

earnings

(accumulated

loss)

$

600

*

Payables,

Total

distributable

earnings

(accumulated

loss)

$

455

*

Total

$

5,080

$

4,349

International

Equity

Index

Fund

Equity

Receivables,

Total

distributable

earnings

(accumulated

loss)

$

—

Payables,

Total

distributable

earnings

(accumulated

loss)

$

7

*

Spectrum

Preferred

and

Capital

Securities

Income

Fund

Interest

rate

Receivables,

Total

distributable

earnings

(accumulated

loss)

$

20

Payables,

Total

distributable

earnings

(accumulated

loss)

$

462

*

Includes

cumulative

unrealized

appreciation/depreciation

of

exchange

traded

swaps

and

futures

as

shown

in

the

schedules

of

investments.

Only

the

portion

of

the

unrealized

appreciation/depreciation

not

yet

cash

settled

is

shown

in

the

statements

of

assets

and

liabilities

as

variation

margin.

Derivatives

not

accounted

for

as

hedging

instruments

Location

of

Gain

or

(Loss)

on

Derivatives

Recognized

in

Statement

of

Operations

Net

Realized

Gain

or

(Loss)

on

Derivatives

Recognized

in

Statement

of

Operations

Net

Change

in

Unrealized

Appreciation/

(Depreciation)

of

Derivatives

Recognized

in

Statement

of

Operations

Diversified

Real

Asset

Fund

Commodity

Net

realized

gain

(loss)

from

Futures

and

Swap

agreements/Net

change

in

unrealized

appreciation/(depreciation)

of

Futures

and

Swap

agreements

$

146,437

$

(9,490)

Foreign

exchange

Net

realized

gain

(loss)

from

Investment

transactions

and

Foreign

currency

contracts/Net

change

in

unrealized

appreciation/(depreciation)

of

Investments

and

Foreign

currency

$

(98)

$

291

Interest

rate

Net

realized

gain

(loss)

from

Investment

transactions,

Futures

Options

and

swaptions

,

and

Swap

agreements/Net

change

in

unrealized

appreciation/(depreciation)

of

Investments,

Futures

Options

and

swaptions

,

and

Swap

agreements

$

3,204

$

(592)

Total

$

149,543

$

(9,791)

Global

Multi-Strategy

Fund

Commodity

Net

realized

gain

(loss)

from

Investment

transactions,

Futures

and

Swap

agreements/Net

change

in

unrealized

appreciation/

(depreciation)

of

Investments

and

Futures

$

4,281

$

1,231

Credit

Net

realized

gain

(loss)

from

Swap

agreements/

Net

change

in

unrealized

appreciation/

(depreciation)

of

Swap

agreements

$

(1,208)

$

(406)

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

61

The

following

table

includes

a

summary

of

the

average

quarterly

outstanding

notional

by

derivative

instrument

type

for

the year

ended August

(amounts

in

thousands):

Derivatives

not

accounted

for

as

hedging

instruments

Location

of

Gain

or

(Loss)

on

Derivatives

Recognized

in

Statement

of

Operations

Net

Realized

Gain

or

(Loss)

on

Derivatives

Recognized

in

Statement

of

Operations

Net

Change

in

Unrealized

Appreciation/

(Depreciation)

of

Derivatives

Recognized

in

Statement

of

Operations

Equity

Net

realized

gain

(loss)

from

Investment

transactions,

Futures

Options

and

swaptions

,

and

Swap

agreements/Net

change

in

unrealized

appreciation/(depreciation)

of

Investments,

Futures

Options

and

swaptions

,

and

Swap

agreements

$

(12,119)

$

2,738

Foreign

exchange

Net

realized

gain

(loss)

from

Investment

transactions,

Foreign

currency

Futures

and

Options

and

swaptions

/Net

change

in

unrealized

appreciation/(depreciation)

of

Investments,

Foreign

currency

Futures

and

Options

and

swaptions

.

$

(5,465)

$

455

Interest

rate

Net

realized

gain

(loss)

from

Investment

transactions,

Futures

Options

and

swaptions

,

and

Swap

agreements/Net

change

in

unrealized

appreciation/(depreciation)

of

Investments,

Futures

Options

and

swaptions

,

and

Swap

agreements

$

(10,501)

$

4,535

Total

$

(25,012)

$

8,553

International

Equity

Index

Fund

Equity

Net

realized

gain

(loss)

from

Futures

contracts/

Net

change

in

unrealized

appreciation/

(depreciation)

of

Futures

$

732

$

(168)

Spectrum

Preferred

and

Capital

Securities

Income

Fund

Interest

rate

Net

realized

gain

(loss)

from

Investment

transactions,

Futures

and

Options

and

swaptions

/Net

change

in

unrealized

appreciation/

(depreciation)

of

Investments,

Futures

and

Options

and

swaptions

$

(5,149)

$

(266)

Contract

Type

Derivative

Type

Average

Notional

Diversified

Real

Asset

Fund

Commodity

Futures

-

Long

$

571,162

Futures

-

Short

311,917

Total

Return

Swaps

-

Receive

Positive

Return

357,607

Foreign

Exchange

Foreign

Currency

-

to

Accept

47,364

Foreign

Currency

-

to

Deliver

70,787

Purchased

Options

1,510

Interest

Rate

Exchange

Cleared

Interest

Rate

Swaps

-

Pay

Floating

Rate

181,449

Exchange

Cleared

Interest

Rate

Swaps

-

Receive

Floating

Rate

247,188

Futures

-

Long

64,578

Futures

-

Short

60,187

Purchased

Capped

Options

39,110

Purchased

Interest

Rate

Swaptions

109,632

Purchased

Options

500

Written

Capped

Options

35,715

Written

Interest

Rate

Swaptions

333,140

Written

Options

388

Global

Multi-Strategy

Fund

Commodity

Futures

-

Long

38,127

Futures

-

Short

14,291

Purchased

Options

2

Credit

Credit

Default

Swaps

–

Buy

Protection

3,700

Exchange

Cleared

Credit

Default

Swaps

–

Buy

Protection

25,476

Exchange

Cleared

Credit

Default

Swaps

–

Sell

Protection

3,910

Equity

Futures

-

Long

44,417

Futures

-

Short

33,675

Purchased

Options

54

Total

Return

Equity

Basket

Swaps

49,378

Written

Options

56

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

62

4.

Fair

Valuation

Fair

value

is

defined

as

the

price

that

the

Funds

would

receive

upon

selling

a

security

or

transferring

a

liability in

a

timely

transaction

to

an

independent

buyer

in

the

principal

or

most

advantageous

market

of

the

security

at

the

measurement

date.

In

determining

fair

value,

the

Funds

may

use

one

or

more

of

the

following

approaches:

market,

income

and/or

cost.

A

hierarchy

for

inputs

is

used

in

measuring

fair

value

that

maximizes

the

use

of

observable

inputs

and

minimizes

the

use

of

unobservable

inputs

by

requiring

that

the

most

observable

inputs

be

used

when

available.

Observable

inputs

are

inputs

that

reflect

the

assumptions

market

participants

would

use

in

pricing

the

asset

or

liability

developed

based

on

market

data

obtained

from

sources

independent

of

the

Funds.

Unobservable

inputs

are

inputs

that

reflect

the

fund's

own

estimates

about

the

estimates

market

participants

would

use

in

pricing

the

asset

or

liability

developed

based

on

the

best

information

available

in

the

circumstances.

The

three-tier

hierarchy

of

inputs

is

summarized

in

the

three

broad

levels

listed

below.

●

Level

1

–

Quoted

prices

are

available

in

active

markets

for

identical

securities

as

of

the

reporting

date.

Investments

which

are

generally

included

in

this

category

include listed

equities

and

listed

derivatives.

●

Level

2

–

Other

significant

observable

inputs

(including

quoted

prices

for

similar

investments,

interest

rates,

prepayment

speeds,

credit

risk,

etc.).

Investments

which

are

generally

included

in

this

category

include

certain

foreign

equities,

corporate

bonds,

municipal

bonds,

OTC

derivatives,

senior

floating

rate

interests,

reverse

repurchase

agreements,

and

U.S.

Government

and

Government

Agency

Obligations.

●

Level

3

–

Significant

unobservable

inputs

(including

the

Funds’

assumptions

in

determining

the

fair

value

of

investments).

Investments

which are

generally included

in

this

category

include

certain

common

stocks,

convertible

preferred

stocks,

corporate

bonds,

preferred

stocks,

or

senior

floating

rate

interests.

The

availability

of

observable

inputs

can

vary

from

security

to

security

and

is

affected

by

a

wide

variety

of

factors,

including,

for

example,

the

type

of

security,

whether

the

security

is

new

and

not

yet

established

in

the

market

place,

and

other

characteristics

particular

to

the

transaction.

To

the

extent

that

valuation

is

based

on

models

or

inputs

that

are

less

observable

or

unobservable

in

the

market,

the

determination

of

fair

value

requires

more

judgment.

Accordingly,

the

degree

of

judgment

exercised

by

the

Funds

in

determining

fair

value

is

greatest

for

instruments

categorized

in

Level

3.

In

certain

cases,

the

inputs

used

to

measure

fair

value

may

fall

into

different

levels

of

the

fair

value

hierarchy.

In

such

cases,

for

disclosure

purposes,

the

level

in

the

fair

value

hierarchy

within

which

the

fair

value

measurement

in

its

entirety

falls

is

determined

based

on

the

lowest

level

input

that

is

significant

to

the

fair

value

measurement

in

its

entirety.

Contract

Type

Derivative

Type

Average

Notional

Foreign

Exchange

Foreign

Currency

-

to

Accept

$

208,972

Foreign

Currency

-

to

Deliver

237,448

Futures

-

Long

1,667

Futures

-

Short

1,450

Purchased

Options

65,729

Written

Options

26,153

Interest

Rate

Exchange

Cleared

Interest

Rate

Swaps

-

Pay

Floating

Rate

141,187

Exchange

Cleared

Interest

Rate

Swaps

-

Receive

Floating

Rate

102,659

Futures

-

Long

325,283

Futures

-

Short

162,193

Interest

Rate

Swaps

-

Pay

Floating

Rate

13,494

Interest

Rate

Swaps

-

Receive

Floating

Rate

54,521

Purchased

Interest

Rate

Swaptions

48,998

Purchased

Options

1,141

Total

Return

Swaps

-

Receive

Positive

Return

4,682

Written

Options

819

International

Equity

Index

Fund

Equity

Futures

-

Long

2,073

Spectrum

Preferred

and

Capital

Securities

Income

Fund

Interest

Rate

Futures

-

Short

151,185

Purchased

Options

1,125

Written

Options

225

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

63

Fair

value

is

a

market

based

measure

considered

from

the

perspective

of

a

market

participant

who

holds

the

asset

rather

than

an

entity

specific

measure.

Therefore,

even

when

market

assumptions

are

not

readily

available,

the

Funds'

own

assumptions

are

set

to

reflect

those

that

market

participants

would

use

in

pricing

the

asset

or

liability

at

the

measurement

date.

The

Funds

use

prices

and

inputs

that

are

current

as

of

the

measurement

date,

when

available.

Investments

which

are

included

in

the

Level

3

category

may

be

valued

using

indicative

quoted

prices

from

brokers

and

dealers

participating

in

the

market

for

these

investments.

These

investments

are

classified

as

Level

3

investments

due

to

the

lack

of

market

transparency

and

market

corroboration

to

support

these

quoted

prices.

Valuation

models

may

be

used

as

the

pricing

source

for

other

investments

classified

as

Level

3.

Benchmark

pricing

procedures

set

the

base

price

of

a

security

based

on

current

market

data.

The

base

price

may

be

a

broker-dealer

quote,

transaction

price,

or

internal

value

based

on

relevant

market

data.

The

fair

values

of

these

securities

are

dependent

on

economic,

political,

and

other

considerations.

The

values

of

such

securities

may

be

affected

by

significant

changes

in

the

economic

conditions,

changes

in

government

policies,

and

other

factors

(e.g.,

natural

disasters,

pandemics,

accidents,

conflicts,

etc.).

The

inputs

or

methodology

used

for

valuing

securities

are

not

necessarily

an

indication

of

the

risk

associated

with

investing

in

those

instruments.

The

following

is

a

summary

of

the

inputs

used

as

of August

in

valuing

the

Funds'

securities

carried

at

fair

value

(amounts

in

thousands):

Fund

Level

1

-

Quoted

Prices

Level

2

-

Other

Significant

Observable

Inputs

Level

3

-

Significant

Unobservable

Inputs

Totals

(Level

1,2,3)

Blue

Chip

Fund

Common

Stocks*

$

11,070,565

$

—

$

—

$

11,070,565

Investment

Companies

18,611

—

18,611

Total

investments

in

securities

$

11,089,176

$

—

$

—

$

11,089,176

Bond

Market

Index

Fund

Bonds*

—

282,519

—

282,519

Investment

Companies

87,124

—

87,124

Municipal

Bonds*

—

4,513

—

4,513

U.S.

Government

&

Government

Agency

Obligations*

—

586,125

—

586,125

Total

investments

in

securities

$

87,124

$

873,157

$

—

$

960,281

Diversified

Real

Asset

Fund

Bonds*

—

448,230

—

448,230

Commodity

Indexed

Structured

Notes*

—

29,653

—

29,653

Common

Stocks

Basic

Materials

213,412

155,495

—

368,907

Communications

1,041

3,386

—

4,427

Consumer,

Cyclical

20,912

14,384

—

35,296

Consumer,

Non-cyclical

59,756

90,701

35

150,492

Energy

394,167

96,914

375

491,456

Financial

328,424

151,426

—

479,850

Industrial

88,171

211,684

—

299,855

Technology

904

182

—

1,086

Utilities

251,756

216,903

—

468,659

Investment

Companies

149,295

—

149,295

Preferred

Stocks

Industrial

—

235

8

243

Senior

Floating

Rate

Interests*

—

406,110

—

406,110

U.S.

Government

&

Government

Agency

Obligations*

—

1,095,145

—

1,095,145

Purchased

Options

22

—

22

Purchased

Interest

Rate

Swaptions

—

2,491

—

2,491

Total

investments

in

securities

$

1,507,860

$

2,922,939

$

418

$

4,431,217

Assets

Commodity

Futures**

17,904

—

17,904

Foreign

Exchange

Foreign

Currency

—

522

—

522

4.

Fair

Valuation

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

64

Fund

Level

1

-

Quoted

Prices

Level

2

-

Other

Significant

Observable

Inputs

Level

3

-

Significant

Unobservable

Inputs

Totals

(Level

1,2,3)

Diversified

Real

Asset

Fund

Interest

Rate

Exchange

Cleared

Interest

Rate

Swaps**

$

—

$

6,806

$

—

$

6,806

Futures**

233

—

233

Liabilities

Commodity

Futures**

(10,544

)

—

(10,544

)

Foreign

Exchange

Foreign

Currency

—

(343)

—

(343)

Interest

Rate

Exchange

Cleared

Interest

Rate

Swaps**

—

(6,057)

—

(6,057)

Futures**

(302)

—

(302)

Interest

Rate

Swaptions

—

(1,777)

—

(1,777)

Written

Options

(24)

—

(24)

Edge

MidCap

Fund

Common

Stocks

Basic

Materials

12,003

—

12,003

Communications

19,067

13,085

—

32,152

Consumer,

Cyclical

65,174

—

65,174

Consumer,

Non-cyclical

110,331

—

110,331

Energy

17,526

—

17,526

Financial

94,992

—

94,992

Industrial

131,116

—

131,116

Technology

80,230

—

80,230

Utilities

28,281

—

28,281

Investment

Companies

12,944

—

12,944

Total

investments

in

securities

$

571,664

$

13,085

$

—

$

584,749

Global

Multi-Strategy

Fund

Bonds*

—

162,861

151

163,012

Common

Stocks

Basic

Materials

6,280

5,604

—

11,884

Communications

21,508

4,223

—

25,731

Consumer,

Cyclical

23,366

9,945

—

33,311

Consumer,

Non-cyclical

34,500

10,756

2,398

47,654

Diversified

4,211

551

—

4,762

Energy

4,468

1,398

—

5,866

Financial

32,387

9,747

351

42,485

Industrial

20,849

12,977

—

33,826

Technology

36,9

50

3,1

44

337

40,431

Utilities

3,980

1,295

—

5,275

Convertible

Bonds*

—

4,480

—

4,480

Convertible

Preferred

Stocks

Communications

—

298

—

298

Consumer,

Non-cyclical

336

—

336

Energy

23

—

2,489

2,512

Financial

447

—

352

799

Technology

211

—

211

Credit

Linked

Structured

Notes*

—

6,392

—

6,392

Investment

Companies

103,012

—

103,012

Preferred

Stocks

Basic

Materials

—

252

—

252

Senior

Floating

Rate

Interests*

—

1,096

32

1,128

U.S.

Government

&

Government

Agency

Obligations*

—

3,864

—

3,864

Purchased

Options

597

—

597

Total

investments

in

securities

$

293,

125

$

238,

883

$

6,110

$

538,118

Short

Sales

Common

Stocks

Basic

Materials

(3,845)

(2,163)

—

(6,008)

Communications

(3,882)

(1,926)

—

(5,808)

Consumer,

Cyclical

(3,723)

(7,260)

—

(10,983)

Consumer,

Non-cyclical

(7,816)

(5,595)

—

(13,411)

Diversified

—

(179)

—

(179)

4.

Fair

Valuation

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

65

Fund

Level

1

-

Quoted

Prices

Level

2

-

Other

Significant

Observable

Inputs

Level

3

-

Significant

Unobservable

Inputs

Totals

(Level

1,2,3)

Global

Multi-Strategy

Fund

Energy

$

(1,475)

$

(911)

$

—

$

(2,386)

Financial

(5,680)

(5,088)

—

(10,768)

Industrial

(3,536)

(7,536)

—

(11,072)

Technology

(5,395)

(2,763)

—

(8,158)

Utilities

(2,205)

(451)

—

(2,656)

Preferred

Stocks

Consumer,

Cyclical

—

(313)

—

(313)

Consumer,

Non-cyclical

—

(142)

—

(142)

Total

Short

Sales

$

(37,557)

$

(34,327)

$

—

$

(71,884)

Assets

Commodity

Futures**

1,128

—

1,128

Equity

Futures**

1,483

—

1,483

Foreign

Exchange

Foreign

Currency

—

1,272

—

1,272

Interest

Rate

Exchange

Cleared

Interest

Rate

Swaps**

—

101

—

101

Futures**

331

—

331

Total

Return

Swaps

—

168

—

168

Liabilities

Credit

Exchange

Cleared

Credit

Default

Swaps**

—

(20)

—

(20)

Commodity

Futures**

(481

)

—

(481

)

Equity

Futures**

(297)

—

(297)

Written

Options

(420)

—

(420)

Total

Return

Equity

Basket

Swaps

—

(61

8)

—

(61

8)

Foreign

Exchange

Foreign

Currency

—

(2,052)

—

(2,052)

Futures**

(6)

—

(6)

Interest

Rate

Exchange

Cleared

Interest

Rate

Swaps**

—

(79)

—

(79)

Futures**

(373)

—

(373)

Total

Return

Swaps

—

(3

)

—

(3

)

International

Equity

Index

Fund

Common

Stocks

Basic

Materials

—

83,714

—

83,714

Communications

2,485

67,096

—

69,581

Consumer,

Cyclical

206

158,343

—

158,549

Consumer,

Non-cyclical

1,544

310,166

—

311,710

Diversified

—

2,413

—

2,413

Energy

—

40,577

—

40,577

Financial

337

235,880

—

236,217

Industrial

—

176,290

—

176,290

Technology

1,422

80,811

—

82,233

Utilities

—

40,947

—

40,947

Investment

Companies

44,559

—

44,559

Preferred

Stocks

Basic

Materials

—

245

—

245

Consumer,

Cyclical

—

4,481

—

4,481

Consumer,

Non-cyclical

—

1,210

—

1,210

Industrial

—

1,201

—

1,201

Total

investments

in

securities

$

50,553

$

1,203,374

$

—

$

1,253,927

Liabilities

Equity

Futures**

(7)

—

(7)

International

Small

Company

Fund

Common

Stocks

Basic

Materials

12,442

60,235

—

72,677

Communications

—

59,725

—

59,725

4.

Fair

Valuation

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

66

Fund

Level

1

-

Quoted

Prices

Level

2

-

Other

Significant

Observable

Inputs

Level

3

-

Significant

Unobservable

Inputs

Totals

(Level

1,2,3)

International

Small

Company

Fund

Consumer,

Cyclical

$

6,525

$

162,991

$

—

$

169,516

Consumer,

Non-cyclical

18,686

126,133

—

144,819

Diversified

—

5,572

—

5,572

Energy

22,342

9,491

—

31,833

Financial

19,738

227,317

—

247,055

Industrial

31,114

251,536

—

282,650

Technology

22,856

93,386

—

116,242

Utilities

21,761

9,452

—

31,213

Investment

Companies

43,765

—

43,765

Preferred

Stocks

Industrial

—

4,209

—

4,209

Total

investments

in

securities

$

199,229

$

1,010,047

$

—

$

1,209,276

Opportunistic

Municipal

Fund

Investment

Companies

2,212

—

2,212

Municipal

Bonds*

—

180,527

267

180,794

Total

investments

in

securities

$

2,212

$

180,527

$

267

$

183,006

Origin

Emerging

Markets

Fund

Common

Stocks

Basic

Materials

140,837

276,700

—

417,537

Communications

106,339

235,823

—

342,162

Consumer,

Cyclical

—

296,237

—

296,237

Consumer,

Non-cyclical

89,215

172,833

—

262,048

Energy

—

161,310

—

161,310

Financial

65,195

668,668

—

733,863

Industrial

—

425,540

—

425,540

Technology

178,168

854,303

—

1,032,471

Utilities

—

77,945

—

77,945

Investment

Companies

96,256

—

96,256

Preferred

Stocks

49,282

—

49,282

Total

investments

in

securities

$

725,292

$

3,169,359

$

—

$

3,894,651

Small-

MidCap

Dividend

Income

Fund

Common

Stocks*

1,100,238

—

1,100,238

Investment

Companies

12,632

—

12,632

Total

investments

in

securities

$

1,112,870

$

—

$

—

$

1,112,870

Small-

MidCap

Growth

Fund

Common

Stocks*

11,273

—

11,273

Investment

Companies

260

—

260

Total

investments

in

securities

$

11,533

$

—

$

—

$

11,533

Spectrum

Preferred

and

Capital

Securities

Income

Fund

Bonds*

—

7,268,975

—

7,268,975

Convertible

Preferred

Stocks

Financial

83,914

—

83,914

Investment

Companies

279,983

—

279,983

Preferred

Stocks

Communications

70,399

—

70,399

Consumer,

Non-cyclical

—

25,585

—

25,585

Energy

55

—

55

Financial

491,930

6,664

—

498,594

Government

832

66,781

—

67,613

Utilities

91,769

1,822

—

93,591

Purchased

Options

20

—

20

Total

investments

in

securities

$

1,018,902

$

7,369,827

$

—

$

8,388,729

Liabilities

Interest

Rate

4.

Fair

Valuation

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

67

*For

additional

detail

regarding

sector

classifications,

please

see

the

schedules

of

investments.

**Exchange

cleared

swaps

and

futures

are

presented

at

the

unrealized

appreciation/(depreciation)

of

the

instrument.

Certain

detailed

information

is

provided

for

those

Funds

with

significant

investments

in

Level

3

securities.

Quantitative

information

about

the

significant

unobservable

inputs

used

in

the

fair

value

measurements

categorized

with

Level

3

of

the

fair

value

hierarchy

is

as

follows

(amounts

in

thousands):

*Unobservable

inputs

were

weighted

by

the

relative

fair

value

of

the

instruments.

**During

the

period,

the

valuation

technique

for

4L

Technologies

–

Rights

changed

from

enterprise

valuation

analysis,

to

a

broker

quote

provided

by

a

pricing

vendor.

The

changes

in

investments

measured

at

fair

value

for

which

Level

3

inputs

have

been

used

to

determine

fair

value

are

as

follows

(amounts

shown

in

thousands):

*Securities

are

transferred

into

Level

3

for

a

variety

of

reasons

including,

but

not

limited

to:

1.

Securities

where

trading

has

been

halted

2.

Securities

that

have

certain

restrictions

on

trading

3.

Instances

in

which

a

security

is

not

priced

by

a

pricing

services

**Securities

are

transferred

out

of

Level

3

for

a

variety

of

reasons

including,

but

not

limited

to:

1.

Securities

where

trading

resumes

2.

Securities

where

trading

restrictions

have

expired

3.

Instances

in

which

a

price

becomes

available

from

a

pricing

service

At

the

end

of

the

year,

there

were

no

other

Funds

which

had

a

significant

Level

3

balance.

During

the

year,

there

were

no

significant

purchases,

sales,

or

transfers

into

or

out

of

Level

3,

except

as

noted

above.

Fund

Level

1

-

Quoted

Prices

Level

2

-

Other

Significant

Observable

Inputs

Level

3

-

Significant

Unobservable

Inputs

Totals

(Level

1,2,3)

Spectrum

Preferred

and

Capital

Securities

Income

Fund

Futures**

$

(462)

$

—

$

—

$

(462)

Fund

Fair

Value

Valuation

Technique

Unobservable

Input

Valuations

(Weighted

Average)*

Impact

to

Valuation

if

Input

had

Increased

Global

Multi-Strategy

Fund

Bonds

$

138

Liquidation

Analysis

Loss

adjusted

spread

24%

-

40%

(31%)

Decrease

13

Liquidation

Analysis

Available

Cash

1.26%

Increase

Common

Stocks

349

Comparable

Debt

Methodology

Internal

Rate

of

Return

19.40%

Increase

2,400

Indicative

Market

Quotations

Broker

Quote

$0.10

–

800.00

($799.19)

Increase

337

Transactions

of

Indicative

Value

Acquisition

Price

$36.50

Increase

Convertible

Preferred

Stock

2,793

Indicative

Market

Quotations**

Broker

Quote

$0.50

–

350.00

($39.27)

Increase

48

Transactions

of

Indicative

Value

Discount

for

Lack

of

Marketability

10%

Decrease

Senior

Floating

Rate

Interests

32

Liquidation

Analysis

Available

Cash

41.97%

Increase

$6,110

Fund

Fair

Value

Realized

Gain/

(Loss)

Accrued

Discounts/

Premiums

and

Change

in

Unrealized

Gain/

(Loss)

Purchases

Proceeds

from

Sales

Transfers

into

Level

3*

Transfers

Out

of

Level

3**

Fair

Value

Net

Change

in

Unrealized

Appreciation/

(Depreciation)

on

Investments

Held

at

Global

Multi-Strategy

Fund

Bonds

$

1,381

$

(340)

$

1,055

$

890

$

(2,032)

$

—

$

(803)

$

151

$

(44)

Common

Stock

748

25

449

204

(256)

1,955

(39)

3,086

468

Convertible

Preferred

Stock

3,418

111

3

21

(712)

—

2,841

157

Senior

Floating

Rate

Interests

590

(507)

236

23

(310)

—

32

(12)

Total

$

6,137

$

(711)

$

1,743

$

1,138

$

(3,310)

$

1,955

$

(842)

$

6,110

$

569

4.

Fair

Valuation

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

68

5.

Management

Agreement

and

Transactions

with

Affiliates

Management

Services.

The

Funds

have

agreed

to

pay

management

and

investment

advisory fees

to

the

Manager

computed

at

an

annual

percentage

rate

of

each

of

the Funds'

average

daily

net

assets.

A

portion

of

the

management

fee

is

paid

by

the

Manager

to

the

sub-advisor

of

each

of

the

Funds,

some

of

which

are

affiliates

of

the

Manager.

The

annual

rates

used

in

this

calculation

for

each

of

the

Funds

are

as

follows:

In

addition

to

the

management

fee,

R-1,

R-2, R-3,

R-4,

and

R-5

classes

of

shares

of

the

Funds

pay

the

Manager

a

service

fee

and

an

administrative

service

fee

computed

at

an

annual

percentage

rate

of

each

class’s

average

daily

net

assets.

The

annual

rates

for

the

service

fee

are

.25%,

and

.25%

and

the

annual

rates

for

the

administrative

service

fee

are

.28%,

.20%,

.07%,

.03%,

and

.01%

for

R-1,

R-2,

R-3,

R-4,

and

R-5,

respectively.

Class

R-2

shares

discontinued

operations

and

converted

to

Class

R-3

shares

on

2021.

Class

A,

Class

C,

and

Institutional

shares

of

the

Funds pay

Principal

Shareholder

Services,

Inc.

(the

“Transfer

Agent”)

(wholly

owned

by

the

Manager)

for

transfer

agent

services.

Class

J

shares

pay

the

Transfer

Agent

a

fee

for

the

services

provided

in

an

amount

that

includes

a

profit.

The

Manager

has

contractually

agreed

to

limit

the

expenses

(excluding

interest

expense,

expenses

fund

investments,

acquired

fund

fees

and

expenses,

and

other

extraordinary

expenses)

for

certain

classes

of

shares

of

certain

of

the

Funds.

The

reductions

and

reimbursements

are

in

amounts

that

maintain

total

operating

expenses

at

or

below

certain

limits.

The

limits

are

expressed

as

a

percentage

of

average

daily

net

assets

attributable

to

each

class

of

shares

on

an

annualized

basis

during

the

reporting

period.

The

expenses

borne

by

the

Manager

are

subject

to

reimbursement

by

the

Funds

through

the

fiscal

year

end,

provided

no

reimbursement

will

be

made

if

it

would

result

in

the

Funds

exceeding

the

total

operating

expense

limits.

Any

amounts

outstanding

at

the

end

of

the

year

are

shown

as

an

expense

reimbursement

from

Manager or

expense

reimbursement

to

Manager

on

the

statements

of

assets

and

liabilities.

The

operating

expense

limits are

as

follows:

Net

Assets

of

Fund

First

$500

million

Over

$1.5

billion

Edge

MidCap

Fund

.70%

.68%

.66%

.65%

International

Small

Company

Fund

1.05

1.03

1.01

1.00

Opportunistic

Municipal

Fund

.50

.48

.46

.45

Small-

MidCap

Growth

Fund

.70

.68

.66

.65

Net

Assets

of

Fund

First

$500

million

billion

Over

$3

billion

Blue

Chip

Fund

.65%

.63%

.61%

.60%

.59%

.58%

Diversified

Real

Asset

Fund

.85

.83

.81

.80

.79

.78

Global

Multi-Strategy

Fund

1.60

1.58

1.56

1.55

1.54

1.53

Origin

Emerging

Markets

Fund

(Prior

to

July

2021)

1.05

1.03

1.01

1.00

Origin

Emerging

Markets

Fund

(Effective

July

2021)

1.05

1.03

1.01

1.00

0.99

0.98

Small-

MidCap

Dividend

Income

Fund

.79

.77

.75

.74

.73

.72

Net

Assets

of

Fund

First

$500

million

billion

Over

$5

billion

Spectrum

Preferred

and

Capital

Securities

Income

Fund

(Prior

to

2020)

.75%

.73%

.71%

.70%

.69%

.68%

Spectrum

Preferred

and

Capital

Securities

Income

Fund

(Effective

2020)

.75

.73

.71

.70

.69

.68

.67

All

Net

Assets

Bond

Market

Index

Fund

.14%

International

Equity

Index

Fund

.25

Period

from

through

Class

A

Class

C

Institutional

Expiration

Blue

Chip

Fund

N/A

.66%

Bond

Market

Index

Fund

N/A

.16

Diversified

Real

Asset

Fund

1.20%

1.95%^

.83

Edge

MidCap

Fund

1.10

N/A

.77

Global

Multi-Strategy

Fund

N/A

2.75^

1.63

International

Equity

Index

Fund

N/A

.31

International

Small

Company

Fund

N/A

1.20

Opportunistic

Municipal

Fund

.84

N/A

.56

Notes

to

Financial

Statements

Principal

Funds,

Inc.

69

^

Class

C

shares

discontinued

operations

and

converted

to

Class

A

shares

on

In

addition,

the

Manager

has

contractually

agreed

to limit

R-6

expenses

other

than

management

and

investment

advisory

fees

and

distribution

fees

and,

if

necessary,

pay

expenses

normally

payable

by

the

Funds,

excluding

interest

expense,

expenses

fund

investments,

acquired

fund

fees

and

expenses,

and

other

extraordinary

expenses.

The

limits

are

expressed

as

a

percentage

of

average

daily

net

assets

attributable

to

R-6

shares

on

an

annualized

basis

during

the

reporting

period.

The limits

are

as

follows:

In

addition,

the

Manager

has

contractually

agreed

to waive

certain

of

the

Funds'

management

and

investment

advisory

fees.

The

expense waiver

will

reduce

the

Funds'

management

and

investment

advisory

fees.

The

waivers

are

expressed

as

a

percentage

of

average

daily

net

assets on

an

annualized

basis

during

the

reporting

period.

The

waivers

are

as

follows:

#

Prior

to

2020,

the

contractual

limit

was

.05%.

Amounts

owed

to

the

Funds

under

the

terms

of

the

expense

limitation

agreements

are

reflected

in

the

statements

of

assets

and

liabilities

as

expense

reimbursement

from

Manager

and

are

settled

periodically.

Distribution

Fees.

The

Class

A,

Class

C,

Class

J,

R-1,

R-2,

R-3,

and

R-4

shares

of

the

Funds

bear

distribution

fees.

The

fee

is

computed

at

an

annual

rate

of

the

average

daily

net

assets

attributable

to

each

class

of

each

of

the

Funds.

Distribution

fees

are

paid

to

Principal

Funds

Distributor,

Inc.

(“the

Distributor”)

(an

affiliate

of

the

Manager),

the

principal

distributor

of

the

Funds.

A

portion

of

the

distribution

fees

may

be

paid

to

other

selling

dealers

for

providing

certain

services.

The

annual

rates

are

.25%,

1.00%,

.15%,

.35%,

.30%,

.25%,

and

.10%

for

Class

A,

Class

C,

Class

J,

R-1,

R-2,

R-3,

and

R-4

classes

of

shares,

respectively.

Class

R-2

shares

discontinued

operations

and

converted

to

Class

R-3

shares

on

The

Distributor

has

voluntarily

agreed

to

limit

the

distribution

fees

(expressed

as

a

percent

of

average

net

assets

on

an

annualized

basis)

attributable

to

Class

J

shares.

The

limit

will

maintain

the

level

of

distribution

fees

not

to

exceed

.13%

for

Class

J

shares

effective

2021.

Prior

to

the

limit

was

.12%.

The

voluntary

expense

limit

may

be

terminated

at

any

time.

Amounts

owed

to

the

Funds

under

the

terms

of

the

expense

limitation

agreements

are

reflected

in

the

statements

of

assets

and

liabilities

as

expense

reimbursement

from

Distributor

and

are

settled

monthly.

Period

from

through

Class

A

Class

C

Institutional

Expiration

Origin

Emerging

Markets

Fund

1.60

N/A

1.20

Small-MidCap

Dividend

Income

Fund

1.12

1.87

.85

Small-MidCap

Growth

Fund

N/A

.83

Spectrum

Preferred

and

Capital

Securities

Income

Fund

N/A

.81

Period

from

through

Class

J

R-1

R-2

R-3

R-4

R-5

Expiration

Bond

Market

Index

Fund

.71%

1.04%

.91%#

.73%

.54%

.42%

#

Class

R-2

shares

discontinued

operations

and

converted

to

Class

R-3

shares

on

Period

from

through

R-6

Expiration

Blue

Chip

Fund

.01%

Diversified

Real

Asset

Fund

.02

Edge

MidCap

Fund

.02

Global

Multi-Strategy

Fund

.02

International

Equity

Index

Fund

.04

International

Small

Company

Fund

.04

Origin

Emerging

Markets

Fund

.04

Small-

MidCap

Dividend

Income

Fund

.02

Spectrum

Preferred

and

Capital

Securities

Income

Fund

.02

Period

from

through

Expiration

Blue

Chip

Fund

.040%#

Bond

Market

Index

Fund

.015

Diversified

Real

Asset

Fund

.050

Edge

MidCap

Fund

.050

Global

Multi-Strategy

Fund

.040

Opportunistic

Municipal

Fund

.060

5.

Management

Agreement

and

Transactions

with

Affiliates

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

70

Chief

Compliance

Officer

Expenses.

The

Funds

pay

certain

expenses

associated

with

the

Chief

Compliance

Officer

(“CCO”).

This

expense

is

allocated

among

the

registered

investment

companies

managed

by

the

Manager

based

on

the

relative

net

assets

of

each

fund

and

is

shown

on

the

statements

of

operations.

Sales

Charges.

The

Distributor

receives

proceeds

of

any

contingent

deferred

sales

charge

(“CDSC”)

on

certain

Class

A,

Class

C,

and

Class

J

share

redemptions.

The

charge

for

Class

A

shares

is

1.00%

of

the

lesser

of

current

market

value

or

the

cost

of

shares

redeemed

within

12

months

of

purchase

that

were

originally

sold

without

a

sales

charge.

The

charge

for

Class

C

shares

is

1.00%

of

the

lesser

of

current

market

value

or

the

cost

of

shares

redeemed

within

12

months

of

purchase.

The

charge

for

Class

J

shares

is

1.00%

of

the

lesser

of

current

market

value

or

the

cost

of

shares

redeemed

within

18

months

of

purchase.

The

Distributor

also

retains

sales

charges

on

sales

of

Class

A

shares

based

on

declining

rates

which

begin

at

3.75%

for

Diversified

Real

Asset

Fund,

Global

Multi-Strategy

Fund,

Opportunistic

Municipal

Fund,

and

Spectrum

Preferred

and

Capital

Securities

Income

Fund,

and

5.50%

for

Blue

Chip

Fund,

Edge

MidCap

Fund,

Origin

Emerging

Markets

Fund,

and

Small-MidCap

Dividend

Income

Fund.

The

aggregate

amounts

of

these

charges

retained

by

the

Distributor

for

the

year

ended

2021,

were

as

follows

(amounts

in

thousands):

Effective

2021,

Class

C

shares

automatically

convert

into

Class

A

shares,

based

on

relative

net

asset

value

(without

a

sales

charge),

8

years

after

purchase.

Prior

to

2021,

the

automatic

conversion

occurred

10

years

after

purchase.

Affiliated

Ownership.

At

2021,

Principal

Life

Insurance

Company

(an

affiliate

of

the

Manager),

the

Manager,

the

Distributor,

Principal

Securities,

Inc.

(an

affiliate

of

the

Manager),

collective

investment

trusts

sponsored

by

Principal

Global

Investors

Trust

Company

(an

affiliate

of

the

Manager),

and benefit

plans

and

separate

accounts

sponsored

on

behalf

of

Principal

Life

Insurance

Company

owned

shares

of

the

Funds

as

follows

(amounts

in

thousands):

Affiliated

Brokerage

Commissions.

With

respect

to

Spectrum

Preferred

and

Capital

Securities

Income

Fund,

$75,000

of

brokerage

commission

was

paid

to

SAMI

Brokerage

LLC,

a

member

of

the

Principal

Financial

Group.

The

other

Funds

did

not

pay

brokerage

commissions

to

any

member

of

the

Principal

Financial

Group

during

the

year

ended

.

6.

Capital

Share

Transactions

The

following

table

reflects

the

conversion

of

Class

C

shares

into

Class

A

shares

(reflected

in

the

statements

of

changes

in

net

assets

as

Class

C

shares

and

dollars

redeemed

and

Class

A

dollars

sold)

for

the year ended August

(amounts

in

thousands).

Class

A

Class

C

Class

J

Blue

Chip

Fund

$

916

$

36

$

26

Bond

Market

Index

Fund

N/A

6

Diversified

Real

Asset

Fund

11

—

N/A

Edge

MidCap

Fund

32

N/A

Global

Multi-Strategy

Fund

2

—

N/A

International

Small

Company

Fund

3

N/A

Opportunistic

Municipal

Fund

7

N/A

Origin

Emerging

Markets

Fund

17

N/A

Small-

MidCap

Dividend

Income

Fund

42

3

N/A

Spectrum

Preferred

and

Capital

Securities

Income

Fund

230

31

7

Institutional

R-4

R-5

R-6

Blue

Chip

Fund

455

–

33,565

Bond

Market

Index

Fund

7,729

–

N/A

Diversified

Real

Asset

Fund

70

1

7,744

Edge

MidCap

Fund

106

N/A

–

Global

Multi-Strategy

Fund

28

N/A

1,124

International

Equity

Index

Fund

–

36,721

International

Small

Company

Fund

144

N/A

324

Opportunistic

Municipal

Fund

65

N/A

Origin

Emerging

Markets

Fund

58

N/A

121,271

Small-

MidCap

Dividend

Income

Fund

52

N/A

576

Small-

MidCap

Growth

Fund

570

N/A

Spectrum

Preferred

and

Capital

Securities

Income

Fund

–

4,415

Shares

Dollars

Diversified

Real

Asset

Fund

486

$

5,96

1

Global

Multi-Strategy

Fund

619

6,811

5.

Management

Agreement

and

Transactions

with

Affiliates

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

71

The

following

table

reflects

the

conversion

of

R-2

shares

into

R-3

shares

(reflected

in

the

statements

of

changes

in

net

assets

as

R-2

shares

and

dollars

redeemed

and

R-3

dollars

sold)

for

the

year

ended

(amounts

in

thousands).

7.

Investment

Transactions

For

the year ended

2021,

the

cost

of

investment

securities

purchased

and

proceeds

from

investment

securities

sold

(not

including

short-term

investments,

return

of

capital,

and

U.S.

government

securities)

by

the

Funds

were

as

follows

(amounts

in

thousands):

For

the year

ended

2021,

the

cost

of

U.S.

government

securities

purchased

and

proceeds

from

U.S.

government

securities

sold

(not

including

short-term

investments)

by

the

Funds

were

as

follows

(amounts

in

thousands):

8.

Federal

Tax

Information

Distributions

to

Shareholders.

The

federal

income

tax

character

of

distributions

paid

for

the years

ended August

2021 and

2020 were

as

follows

(amounts

in

thousands):

^

The

Funds

designate

these

distributions

as

exempt

interest

per

Internal

Revenue

Code

(“IRC”)

Sec.

852(b)(5).

*The

Funds

designate

these

distributions

as

long-term

capital

gain

dividends

per

IRC

Sec.

852

(b)(3)(C)

in

the

20-percent

group

(which

may

be

taxed

at

a

20-percent

rate,

a

15-percent

rate

or

a

0-percent

rate,

depending

on

the

shareholder’s

taxable

income).

Certain

Funds

may

also

utilize

earnings

and

profits

distributed

to

shareholders

on

redemptions

of

shares

as

part

of

the

dividends

paid

deduction.

Shares

Dollars

Bond

Market

Index

Fund

63

$

616

International

Equity

Index

Fund

31

357

Spectrum

Preferred

and

Capital

Securities

Income

Fund

152

1,559

Purchases

Sales

Covers

on

Securities

Sold

Short

Securities

Sold

Short

Blue

Chip

Fund

$

2,984,859

$

2,305,707

$

—

$

—

Bond

Market

Index

Fund

831,977

1,668,473

—

Diversified

Real

Asset

Fund

2,183,612

1,981,498

—

Edge

MidCap

Fund

112,564

615,972

—

Global

Multi-Strategy

Fund

839,718

1,195,838

378,812

264,883

International

Equity

Index

Fund

250,442

345,244

—

International

Small

Company

Fund

582,012

704,358

—

Opportunistic

Municipal

Fund

105,370

69,096

—

Origin

Emerging

Markets

Fund

3,956,505

2,125,757

—

Small-

MidCap

Dividend

Income

Fund

1,008,980

2,049,248

—

Small-

MidCap

Growth

Fund

15,207

15,069

—

Spectrum

Preferred

and

Capital

Securities

Income

Fund

2,278,247

1,461,170

—

Purchases

Sales

Covers

on

Securities

Sold

Short

Securities

Sold

Short

Bond

Market

Index

Fund

$

947,246

$

1,576,123

$

—

$

—

Diversified

Real

Asset

Fund

959,274

505,948

—

Global

Multi-Strategy

Fund

1,050,887

1,466,060

750,749

478,928

Spectrum

Preferred

and

Capital

Securities

Income

Fund

56,980

225,747

—

Ordinary

Income

Tax-Exempt

Income^

Long-Term

Capital

Gain*

Return

of

Capital

2021

2020

2021

2020

2021

2020

2021

2020

Blue

Chip

Fund

$

44,704

$

35,653

$

—

$

—

$

228,535

$

183,262

$

—

$

—

Bond

Market

Index

Fund

63,068

58,976

—

68,395

—

Diversified

Real

Asset

Fund

17,546

96,919

—

Edge

MidCap

Fund

12,421

7,567

—

34,845

22,087

—

Global

Multi-Strategy

Fund

12,889

—

International

Equity

Index

Fund

24,413

34,826

—

2,602

3,303

—

International

Small

Company

Fund

12,895

27,587

—

Opportunistic

Municipal

Fund

10

7

5,098

4,766

—

Origin

Emerging

Markets

Fund

17,592

21,257

—

Small-

MidCap

Dividend

Income

Fund

18,307

39,231

—

15,278

—

Small-

MidCap

Growth

Fund

600

—

188

—

Spectrum

Preferred

and

Capital

Securities

Income

Fund

339,747

294,361

—

404

6.

Capital

Share

Transactions

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

72

For

U.S.

federal

income

tax

purposes,

short-term

capital

gain

distributions

are

considered

ordinary

income

distributions.

Distributable

Earnings.

As

of August

2021,

the

components

of

total

distributable

earnings

(accumulated

loss)

on

a

federal

tax

basis

were

as

follows

(amounts

in

thousands):

*Represents

book-to-tax

accounting

differences

straddle

loss

deferrals,

constructive

sale

gain

recognition,

defaulted

securities,

inverse

floating

rate

securities,

contingent

convertible

bonds,

foreign

capital

gain

taxes,

short

sales,

and

perpetual

bonds.

Capital

Loss

Carryforwards.

For

federal

income

tax

purposes,

capital

loss

carryforwards

are

losses

that

can

be

used

to

offset

future

capital

gains

of

the

Funds.

As

of

2021,

the

Funds

had

approximate

net

capital

loss

carryforwards

as

follows

(amounts

in

thousands):

All

of

these

capital

losses

were

generated

in

taxable

years

beginning

after

the

enactment

date

of

the

Regulated

Investment

Company

Modernization

Act

of

2010

on

22,

2010,

and

will

be

carried

forward

with

no

expiration

and

with

the

character

of

the

loss

retained.

For

the

year

ended

,

the

Funds

utilized

capital

loss

carryforwards

as

follows

(amounts

in

thousands):

Late-Year

Losses.

A

regulated

investment

company

may

elect

to

treat

any

portion

of

its

qualified

late-year

loss

as

arising

on

the

first

day

of

the

year.

Qualified

late-year

losses

are

certain

capital

and

ordinary

losses

which

occur

during

the

portion

of

the

fund’s

taxable

year

subsequent

to

October

31

and

December

31,

respectively. As

of

2021,

the

Funds

do

not

plan

to

defer

any

late

year

losses.

Reclassification

of

Capital

Accounts.

The

Funds

may

record

reclassifications

in

their

capital

accounts.

These

reclassifications

have

no

impact

on

the

total

net

assets

of

the

Funds.

The

reclassifications

are

a

result

of

permanent

differences

between

U.S.

GAAP

and

tax

accounting.

Adjustments

are

made

to

reflect

the

impact

these

items

have

on

current

and

future

distributions

to

shareholders.

Therefore,

the

source

of

the

Funds’

distributions

may

be

shown

in

the

accompanying

statements

of

changes

in

net

assets

as

from

net

investment

income

and net

realized

gain

on

investments

or

from

tax

return

of

capital

depending

on

the

type

of

book

and

tax

differences

that

exist.

For

the

year

ended August

2021,

the

Funds

recorded

reclassifications

as

follows

(amounts

in

thousands):

Undistributed

Ordinary

Income

Undistributed

Tax-Exempt

Income

Undistributed

Long-Term

Capital

Gains

Accumulated

Losses

Net

Unrealized

Appreciation

(Depreciation)

Other

Temporary

Differences

*

Total

Accumulated

Earnings

(Deficit)

Blue

Chip

Fund

$

81,670

$

—

$

558,321

$

—

$

4,741,378

$

—

$

5,381,369

Bond

Market

Index

Fund

12,325

—

34,107

—

46,432

Diversified

Real

Asset

Fund

195,383

—

(14,609

)

298,339

(17

)

479,096

Edge

MidCap

Fund

17,829

—

118,099

—

162,333

—

298,261

Global

Multi-Strategy

Fund

10,645

—

5,968

—

24,327

(3,834

)

37,106

International

Equity

Index

Fund

25,537

—

23,122

—

282,656

—

331,315

International

Small

Company

Fund

16,645

—

60,530

—

225,784

—

302,959

Opportunistic

Municipal

Fund

—

98

—

(992

)

12,736

(125

)

11,717

Origin

Emerging

Markets

Fund

58,122

—

68,160

—

273,363

—

399,645

Small-

MidCap

Dividend

Income

Fund

485

—

(10,245

)

372,266

—

362,506

Small-

MidCap

Growth

Fund

1,454

—

1,326

—

2,127

—

4,907

Spectrum

Preferred

and

Capital

Securities

Income

Fund

4,676

—

(46,677

)

552,169

63,193

573,361

Short-Term

Long-Term

Total

Diversified

Real

Asset

Fund

$

14,609

$

—

$

14,609

Opportunistic

Municipal

Fund

950

42

992

Small-

MidCap

Dividend

Income

Fund

—

10,245

Spectrum

Preferred

and

Capital

Securities

Income

Fund

2,508

44,169

46,677

Utilized

Diversified

Real

Asset

Fund

$

193,663

Global

Multi-Strategy

Fund

19,251

International

Small

Company

Fund

48,656

Opportunistic

Municipal

Fund

1,129

Origin

Emerging

Markets

Fund

63,076

Spectrum

Preferred

and

Capital

Securities

Income

Fund

34,305

Total

Distributable

Earnings

(Accumulated

Loss)

Capital

Shares

and

Additional

Paid-in-Capital

Blue

Chip

Fund

$

(54,151)

$

54,151

Bond

Market

Index

Fund

(27,054)

27,054

Diversified

Real

Asset

Fund

(7,777)

7,777

8.

Federal

Tax

Information

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

73

Federal

Income

Tax

Basis.

As

of August

2021,

the

net

federal

income

tax

unrealized

appreciation

(depreciation)

and

federal

tax

cost

of

investments

held

by

the

Funds

were

as

follows

(amounts

in

thousands):

9.

Subsequent

Events

Management

has

evaluated

events

and

transactions

that

have

occurred

through

the

date

the

financial

statements

were issued

that

would

merit

recognition

or

disclosure

in

the

financial

statements.

There

were

no

items

requiring

adjustment

of

the

financial

statements

or

additional

disclosure.

Total

Distributable

Earnings

(Accumulated

Loss)

Capital

Shares

and

Additional

Paid-in-Capital

Edge

MidCap

Fund

$

(50,513)

$

50,513

Global

Multi-Strategy

Fund

523

(523)

International

Equity

Index

Fund

(4,342)

4,342

International

Small

Company

Fund

(1,542)

1,542

Origin

Emerging

Markets

Fund

(1,685)

1,685

Small-

MidCap

Dividend

Income

Fund

(1,219)

1,219

Spectrum

Preferred

and

Capital

Securities

Income

Fund

(404)

404

Unrealized

Appreciation

Unrealized

(Depreciation)

Net

Unrealized

Appreciation/

(Depreciation)

Cost

for

Federal

Income

Tax

Purposes

Blue

Chip

Fund

$

4,781,695

$

(40,317)

$

4,741,378

$

6,347,798

Bond

Market

Index

Fund

39,360

(5,253)

34,107

926,174

Diversified

Real

Asset

Fund

514,677

(128,828)

385,849

4,060,186

Edge

MidCap

Fund

170,734

(8,401)

162,333

422,416

Global

Multi-Strategy

Fund

64,068

(33,932)

30,136

438,4

60

International

Equity

Index

Fund

388,891

(106,315)

282,576

971,344

International

Small

Company

Fund

255,621

(29,865)

225,756

983,520

Opportunistic

Municipal

Fund

*

14,265

(1,559)

12,706

162,579

Origin

Emerging

Markets

Fund

566,347

(292,944)

273,403

3,621,248

Small-

MidCap

Dividend

Income

Fund

380,990

(8,725)

372,265

740,605

Small-

MidCap

Growth

Fund

2,290

(163)

2,127

9,406

Spectrum

Preferred

and

Capital

Securities

Income

Fund

577,360

(25,191)

552,169

7,836,098

*

The

fund

holds

floating

rate

securities

which

are

accounted

for

differently

for

U.S.

GAAP

vs.

federal

income

tax

purposes.

This

may

cause

a

difference

in

cost

basis

and

fair

market

value

of

investments

for

tax

and

U.S.

GAAP

purposes.

8.

Federal

Tax

Information

(continued)

Schedule

of

Investments

Blue

Chip

Fund

See

accompanying

notes.

74

INVESTMENT

COMPANIES

-

0

.17

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

0

.17

%

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

(a),(b),(c)

18,610,552‌

$

18,611‌

TOTAL

INVESTMENT

COMPANIES

$

18,611‌

COMMON

STOCKS

-

100

.07

%

Shares

Held

Value

(000's)

Aerospace

&

Defense

-

3

.64

%

TransDigm

Group

Inc

(b)

663,859‌

$

403,274‌

Chemicals

-

1

.33

%

Linde

PLC

337,179‌

106,073‌

Sherwin-Williams

Co/The

134,682‌

40,899‌

$

146,972‌

Commercial

Services

-

6

.58

%

CoStar

Group

Inc

(b)

1,695,313‌

143,661‌

PayPal

Holdings

Inc

(b)

1,594,052‌

460,139‌

S&P

Global

Inc

280,793‌

124,621‌

$

728,421‌

Diversified

Financial

Services

-

8

.93

%

Brookfield

Asset

Management

Reinsurance

Partners

Ltd

(b)

62,940‌

3,845‌

Charles

Schwab

Corp/The

1,248,300‌

90,939‌

Mastercard

Inc

1,304,734‌

451,738‌

Visa

Inc

1,927,642‌

441,623‌

$

988,145‌

Healthcare

-

Products

-

5

.92

%

Danaher

Corp

1,052,756‌

341,261‌

IDEXX

Laboratories

Inc

(b)

126,959‌

85,540‌

Intuitive

Surgical

Inc

(b)

216,057‌

227,629‌

$

654,430‌

Insurance

-

0

.56

%

Progressive

Corp/The

639,996‌

61,657‌

Internet

-

24

.13

%

Alphabet

Inc

-

A

Shares

(b)

47,611‌

137,784‌

Alphabet

Inc

-

C

Shares

(b)

221,947‌

645,697‌

Amazon.com

Inc

(b)

284,282‌

986,683‌

Etsy

Inc

(b)

258,871‌

55,983‌

Facebook

Inc

(b)

1,282,837‌

486,683‌

Netflix

Inc

(b)

563,636‌

320,816‌

Spotify

Technology

SA

(b)

153,725‌

36,024‌

$

2,669,670‌

Lodging

-

1

.66

%

Hilton

Worldwide

Holdings

Inc

(b)

1,467,795‌

183,269‌

Media

-

3

.77

%

Charter

Communications

Inc

(b)

404,321‌

330,193‌

Liberty

Broadband

Corp

-

C

Shares

(b)

452,471‌

86,567‌

$

416,760‌

Pharmaceuticals

-

0

.85

%

Zoetis

Inc

460,107‌

94,120‌

Private

Equity

-

5

.48

%

Brookfield

Asset

Management

Inc

8,996,169‌

499,737‌

KKR

&

Co

Inc

1,651,334‌

106,165‌

$

605,902‌

REITs

-

3

.59

%

American

Tower

Corp

1,360,699‌

397,555‌

Retail

-

2

.86

%

CarMax

Inc

(b)

611,003‌

76,504‌

Costco

Wholesale

Corp

184,670‌

84,115‌

O'Reilly

Automotive

Inc

(b)

94,144‌

55,929‌

Starbucks

Corp

849,247‌

99,778‌

$

316,326‌

Semiconductors

-

3

.13

%

NVIDIA

Corp

1,545,210‌

345,895‌

Software

-

27

.64

%

Adobe

Inc

(b)

818,639‌

543,331‌

Autodesk

Inc

(b)

510,835‌

158,405‌

Intuit

Inc

934,183‌

528,850‌

Microsoft

Corp

3,199,403‌

965,836‌

Roper

Technologies

Inc

336,116‌

162,438‌

salesforce.com

Inc

(b)

1,900,201‌

504,066‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Software

(continued)

Snowflake

Inc

-

Class

A

(b)

58,864‌

$

17,915‌

Twilio

Inc

(b)

496,771‌

177,328‌

$

3,058,169‌

TOTAL

COMMON

STOCKS

$

11,070,565‌

Total

Investments

$

11,089,176‌

Other

Assets

and

Liabilities

- (0.24)%

(

26,749‌

)

TOTAL

NET

ASSETS

-

100.00%

$

11,062,427‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Non-income

producing

security

(c)

Current

yield

shown

is

as

of

period

end.

Portfolio

Summary (unaudited)

Sector

Percent

Technology

30

.77‌

%

Communications

27

.90‌

%

Financial

18

.56‌

%

Consumer,

Non-cyclical

13

.35‌

%

Consumer,

Cyclical

4

.52‌

%

Industrial

3

.64‌

%

Basic

Materials

1

.33‌

%

Money

Market

Funds

0

.17‌

%

Other

Assets

and

Liabilities

(

0

.24‌

)

%

TOTAL

NET

ASSETS

100.00%

Schedule

of

Investments

Blue

Chip

Fund

See

accompanying

notes.

75

Affiliated

Securities

Purchases

Sales

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

$

11,250‌

$

1,158,610‌

$

1,151,249‌

$

18,611‌

$

11,250‌

$

1,158,610‌

$

1,151,249‌

$

18,611‌

Income

(a)

Realized

Gain/Loss

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

Loss

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

(a)

Amount

excludes

earnings

from

securities

lending

collateral.

Schedule

of

Investments

Bond

Market

Index

Fund

See

accompanying

notes.

76

INVESTMENT

COMPANIES

-

9.70%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

0.68%

iShares

iBoxx

$

Investment

Grade

Corporate

Bond

ETF

45,000‌

$

6,08

8‌

Money

Market

Funds

-

9.02%

BlackRock

Liquidity

FedFund

-

Institutional

Class

0.03%

(a),(b)

3,246,754‌

3,24

7‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

(a),(c),(d)

77,788,559‌

77,789‌

$

81,03

6‌

TOTAL

INVESTMENT

COMPANIES

$

87,124‌

BONDS

-

31.45%

Principal

Amount

(000's)

Value

(000's)

Advertising

-

0.04%

Interpublic

Group

of

Cos

Inc/The

2.40%,

03/01/2031

$

60‌

$

61‌

Omnicom

Group

Inc

2.45%,

04/30/2030

155‌

159‌

2.60%,

08/01/2031

35‌

36‌

WPP

Finance

2010

3.75%,

09/19/2024

75‌

81‌

$

337‌

Aerospace

&

Defense

-

0.60%

Boeing

Co/The

2.70%,

02/01/2027

110‌

114‌

2.75%,

02/01/2026

85‌

89‌

2.80%,

03/01/2024

200‌

209‌

2.95%,

02/01/2030

140‌

144‌

3.25%,

02/01/2028

85‌

91‌

3.50%,

03/01/2039

200‌

203‌

3.63%,

02/01/2031

85‌

92‌

3.95%,

08/01/2059

290‌

302‌

4.51%,

05/01/2023

630‌

667‌

5.04%,

05/01/2027

315‌

363‌

5.71%,

05/01/2040

120‌

155‌

5.81%,

05/01/2050

155‌

210‌

5.88%,

02/15/2040

100‌

130‌

General

Dynamics

Corp

1.15%,

06/01/2026

(e)

60‌

61‌

2.25%,

06/01/2031

60‌

62‌

3.25%,

04/01/2025

80‌

86‌

3.50%,

05/15/2025

235‌

257‌

4.25%,

04/01/2040

155‌

193‌

L3Harris

Technologies

Inc

1.80%,

01/15/2031

35‌

34‌

Lockheed

Martin

Corp

4.07%,

12/15/2042

105‌

129‌

4.09%,

09/15/2052

162‌

205‌

4.70%,

05/15/2046

75‌

101‌

Northrop

Grumman

Corp

3.20%,

02/01/2027

130‌

142‌

Raytheon

Technologies

Corp

1.90%,

09/01/2031

155‌

153‌

2.82%,

09/01/2051

150‌

148‌

3.20%,

03/15/2024

75‌

80‌

4.13%,

11/16/2028

270‌

311‌

4.70%,

12/15/2041

350‌

445‌

6.13%,

07/15/2038

46‌

66‌

Teledyne

Technologies

Inc

0.95%,

04/01/2024

60‌

2.25%,

04/01/2028

60‌

61‌

$

5,363‌

Agriculture

-

0.31%

Altria

Group

Inc

2.35%,

05/06/2025

65‌

68‌

2.45%,

02/04/2032

60‌

59‌

3.40%,

05/06/2030

125‌

134‌

3.70%,

02/04/2051

60‌

58‌

4.00%,

02/04/2061

60‌

59‌

5.38%,

01/31/2044

25‌

30‌

5.80%,

02/14/2039

350‌

438‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Agriculture

(continued)

BAT

Capital

Corp

2.26%,

03/25/2028

$

150‌

$

151‌

2.73%,

03/25/2031

150‌

149‌

2.79%,

09/06/2024

210‌

221‌

3.46%,

09/06/2029

210‌

224‌

3.98%,

09/25/2050

150‌

148‌

BAT

International

Finance

PLC

1.67%,

03/25/2026

150‌

151‌

Bunge

Ltd

Finance

Corp

2.75%,

05/14/2031

60‌

62‌

Philip

Morris

International

Inc

0.88%,

05/01/2026

85‌

84‌

1.75%,

11/01/2030

85‌

83‌

4.13%,

03/04/2043

300‌

341‌

Reynolds

American

Inc

4.45%,

06/12/2025

220‌

244‌

5.70%,

08/15/2035

50‌

61‌

5.85%,

08/15/2045

50‌

62‌

$

2,827‌

Airlines

-

0.08%

American

Airlines

2019-1

Class

AA

Pass

Through

Trust

3.15%,

08/15/2033

129‌

131‌

Delta

Air

Lines

2020-1

Class

AA

Pass

Through

Trust

2.00%,

06/10/2028

291‌

292‌

Southwest

Airlines

Co

3.00%,

11/15/2026

80‌

86‌

5.25%,

05/04/2025

130‌

147‌

United

Airlines

2019-2

Class

AA

Pass

Through

Trust

2.70%,

11/01/2033

67‌

68‌

$

724‌

Apparel

-

0.04%

NIKE

Inc

2.40%,

03/27/2025

155‌

164‌

3.25%,

03/27/2040

155‌

173‌

$

337‌

Automobile

Manufacturers

-

0.37%

American

Honda

Finance

Corp

0.55%,

07/12/2024

55‌

0.65%,

09/08/2023

150‌

151‌

1.20%,

07/08/2025

160‌

161‌

1.95%,

05/10/2023

155‌

159‌

Cummins

Inc

4.88%,

10/01/2043

25‌

33‌

General

Motors

Co

4.88%,

10/02/2023

80‌

87‌

5.15%,

04/01/2038

160‌

193‌

5.20%,

04/01/2045

85‌

104‌

5.40%,

04/01/2048

65‌

82‌

6.25%,

10/02/2043

75‌

103‌

General

Motors

Financial

Co

Inc

1.05%,

03/08/2024

60‌

1.25%,

01/08/2026

55‌

1.50%,

06/10/2026

60‌

1.70%,

08/18/2023

320‌

326‌

2.35%,

01/08/2031

55‌

54‌

2.40%,

04/10/2028

60‌

61‌

2.70%,

06/10/2031

60‌

61‌

4.00%,

10/06/2026

75‌

83‌

PACCAR

Financial

Corp

0.35%,

08/11/2023

160‌

0.35%,

02/02/2024

60‌

1.80%,

02/06/2025

100‌

104‌

Toyota

Motor

Corp

1.34%,

03/25/2026

115‌

116‌

Schedule

of

Investments

Bond

Market

Index

Fund

See

accompanying

notes.

77

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Automobile

Manufacturers

(continued)

Toyota

Motor

Credit

Corp

0.35%,

10/14/2022

$

95‌

$

95‌

0.45%,

01/11/2024

55‌

0.50%,

08/14/2023

160‌

161‌

0.50%,

06/18/2024

60‌

0.80%,

10/16/2025

55‌

1.15%,

08/13/2027

160‌

159‌

1.65%,

01/10/2031

(e)

55‌

1.80%,

02/13/2025

155‌

160‌

2.00%,

10/07/2024

145‌

151‌

$

3,279‌

Automobile

Parts

&

Equipment

-

0.04%

BorgWarner

Inc

4.38%,

03/15/2045

300‌

357‌

Banks

-

5.70%

Banco

Santander

SA

1.85%,

03/25/2026

200‌

203‌

2.75%,

05/28/2025

200‌

211‌

3.49%,

05/28/2030

200‌

218‌

Bank

of

America

Corp

0.52%,

06/14/2024

(f)

210‌

Secured

Overnight

Financing

Rate

+

0.41%

0.81%,

10/24/2024

(f)

205‌

206‌

Secured

Overnight

Financing

Rate

+

0.74%

0.98%,

04/22/2025

(f)

115‌

116‌

Secured

Overnight

Financing

Rate

+

0.69%

0.98%,

09/25/2025

(f)

150‌

Secured

Overnight

Financing

Rate

+

0.91%

1.32%,

06/19/2026

(f)

310‌

311‌

Secured

Overnight

Financing

Rate

+

1.15%

1.66%,

03/11/2027

(f)

210‌

212‌

Secured

Overnight

Financing

Rate

+

0.91%

1.73%,

07/22/2027

(f)

115‌

117‌

Secured

Overnight

Financing

Rate

+

0.96%

1.90%,

07/23/2031

(f)

250‌

245‌

Secured

Overnight

Financing

Rate

+

1.53%

1.92%,

10/24/2031

(f)

205‌

201‌

Secured

Overnight

Financing

Rate

+

1.37%

2.02%,

02/13/2026

(f)

365‌

376‌

3

Month

USD

LIBOR

+

0.64%

2.09%,

06/14/2029

(f)

60‌

61‌

Secured

Overnight

Financing

Rate

+

1.06%

2.30%,

07/21/2032

(f)

115‌

116‌

Secured

Overnight

Financing

Rate

+

1.22%

2.46%,

10/22/2025

(f)

300‌

314‌

3

Month

USD

LIBOR

+

0.87%

2.50%,

10/21/2022

75‌

2.65%,

03/11/2032

(f)

175‌

181‌

Secured

Overnight

Financing

Rate

+

1.22%

2.68%,

06/19/2041

(f)

465‌

458‌

Secured

Overnight

Financing

Rate

+

1.93%

2.83%,

10/24/2051

(f)

75‌

74‌

Secured

Overnight

Financing

Rate

+

1.88%

2.97%,

07/21/2052

(f)

115‌

116‌

Secured

Overnight

Financing

Rate

+

1.56%

3.25%,

10/21/2027

350‌

382‌

3.31%,

04/22/2042

(f)

115‌

124‌

Secured

Overnight

Financing

Rate

+

1.58%

3.46%,

03/15/2025

(f)

500‌

534‌

3

Month

USD

LIBOR

+

0.97%

3.48%,

03/13/2052

(f)

60‌

67‌

Secured

Overnight

Financing

Rate

+

1.65%

3.86%,

07/23/2024

(f)

200‌

212‌

3

Month

USD

LIBOR

+

0.94%

3.95%,

01/23/2049

(f)

110‌

130‌

3

Month

USD

LIBOR

+

1.19%

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

Bank

of

America

Corp

(continued)

3.97%,

03/05/2029

(f)

$

75‌

$

85‌

3

Month

USD

LIBOR

+

1.07%

4.00%,

01/22/2025

90‌

98‌

4.10%,

07/24/2023

75‌

80‌

4.33%,

03/15/2050

(f)

255‌

319‌

3

Month

USD

LIBOR

+

1.52%

5.00%,

01/21/2044

75‌

101‌

5.88%,

02/07/2042

60‌

88‌

6.11%,

01/29/2037

250‌

344‌

Bank

of

Montreal

0.95%,

01/22/2027

(f)

55‌

54‌

Secured

Overnight

Financing

Rate

+

0.60%

1.85%,

05/01/2025

160‌

165‌

2.55%,

11/06/2022

75‌

77‌

3.30%,

02/05/2024

350‌

373‌

Bank

of

New

York

Mellon

Corp/The

0.35%,

12/07/2023

245‌

0.50%,

04/26/2024

150‌

0.75%,

01/28/2026

60‌

1.65%,

07/14/2028

245‌

248‌

Bank

of

Nova

Scotia/The

0.55%,

09/15/2023

150‌

1.05%,

03/02/2026

60‌

1.30%,

06/11/2025

155‌

157‌

2.00%,

11/15/2022

150‌

153‌

2.15%,

08/01/2031

60‌

61‌

4.50%,

12/16/2025

60‌

68‌

Barclays

PLC

2.65%,

06/24/2031

(f)

310‌

316‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.90%

3.56%,

09/23/2035

(f)

200‌

209‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.90%

3.68%,

01/10/2023

200‌

202‌

3.81%,

03/10/2042

(f)

200‌

218‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.70%

4.38%,

01/12/2026

380‌

427‌

4.97%,

05/16/2029

(f)

200‌

235‌

3

Month

USD

LIBOR

+

1.90%

Canadian

Imperial

Bank

of

Commerce

0.50%,

12/14/2023

55‌

1.25%,

06/22/2026

60‌

Citigroup

Inc

0.78%,

10/30/2024

(f)

130‌

Secured

Overnight

Financing

Rate

+

0.69%

0.98%,

05/01/2025

(f)

385‌

387‌

Secured

Overnight

Financing

Rate

+

0.67%

1.12%,

01/28/2027

(f)

60‌

59‌

Secured

Overnight

Financing

Rate

+

0.77%

1.46%,

06/09/2027

(f)

185‌

186‌

Secured

Overnight

Financing

Rate

+

0.77%

1.68%,

05/15/2024

(f)

155‌

158‌

Secured

Overnight

Financing

Rate

+

1.67%

2.56%,

05/01/2032

(f)

200‌

206‌

Secured

Overnight

Financing

Rate

+

1.17%

2.57%,

06/03/2031

(f)

310‌

320‌

Secured

Overnight

Financing

Rate

+

2.11%

2.98%,

11/05/2030

(f)

150‌

160‌

Secured

Overnight

Financing

Rate

+

1.42%

3.52%,

10/27/2028

(f)

125‌

137‌

3

Month

USD

LIBOR

+

1.15%

3.70%,

01/12/2026

110‌

122‌

3.88%,

01/24/2039

(f)

220‌

256‌

3

Month

USD

LIBOR

+

1.17%

4.13%,

07/25/2028

110‌

124‌

Schedule

of

Investments

Bond

Market

Index

Fund

See

accompanying

notes.

78

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

Citigroup

Inc

(continued)

4.30%,

11/20/2026

$

75‌

$

85‌

4.45%,

09/29/2027

75‌

86‌

4.65%,

07/30/2045

115‌

150‌

6.68%,

09/13/2043

360‌

561‌

Cooperatieve

Rabobank

UA

5.25%,

05/24/2041

185‌

261‌

Cooperatieve

Rabobank

UA/NY

0.38%,

01/12/2024

250‌

Credit

Suisse

AG/New

York

NY

0.50%,

02/02/2024

500‌

0.52%,

08/09/2023

250‌

251‌

Deutsche

Bank

AG/New

York

NY

2.22%,

09/18/2024

(f)

150‌

154‌

Secured

Overnight

Financing

Rate

+

2.16%

3.04%,

05/28/2032

(f)

150‌

155‌

Secured

Overnight

Financing

Rate

+

1.72%

3.95%,

02/27/2023

100‌

105‌

4.10%,

01/13/2026

250‌

274‌

Fifth

Third

Bank

NA

1.80%,

01/30/2023

250‌

255‌

Goldman

Sachs

Group

Inc/The

0.63%,

11/17/2023

(f)

115‌

Secured

Overnight

Financing

Rate

+

0.54%

0.66%,

09/10/2024

(f)

115‌

Secured

Overnight

Financing

Rate

+

0.51%

0.67%,

03/08/2024

(f)

115‌

Secured

Overnight

Financing

Rate

+

0.57%

0.86%,

02/12/2026

(f)

245‌

244‌

Secured

Overnight

Financing

Rate

+

0.61%

1.09%,

12/09/2026

(f)

395‌

392‌

Secured

Overnight

Financing

Rate

+

0.79%

1.43%,

03/09/2027

(f)

115‌

Secured

Overnight

Financing

Rate

+

0.80%

1.54%,

09/10/2027

(f)

60‌

Secured

Overnight

Financing

Rate

+

0.82%

1.99%,

01/27/2032

(f)

640‌

627‌

Secured

Overnight

Financing

Rate

+

1.09%

2.38%,

07/21/2032

(f)

85‌

86‌

Secured

Overnight

Financing

Rate

+

1.25%

2.62%,

04/22/2032

(f)

115‌

119‌

Secured

Overnight

Financing

Rate

+

1.28%

2.91%,

07/21/2042

(f)

115‌

116‌

Secured

Overnight

Financing

Rate

+

1.47%

3.21%,

04/22/2042

(f)

60‌

63‌

Secured

Overnight

Financing

Rate

+

1.51%

3.27%,

09/29/2025

(f)

75‌

80‌

3

Month

USD

LIBOR

+

1.20%

3.63%,

01/22/2023

335‌

350‌

3.75%,

02/25/2026

75‌

83‌

3.81%,

04/23/2029

(f)

75‌

84‌

3

Month

USD

LIBOR

+

1.16%

3.85%,

01/26/2027

110‌

122‌

4.41%,

04/23/2039

(f)

175‌

214‌

3

Month

USD

LIBOR

+

1.43%

4.75%,

10/21/2045

150‌

198‌

6.25%,

02/01/2041

220‌

327‌

6.75%,

10/01/2037

210‌

306‌

HSBC

Holdings

PLC

1.65%,

04/18/2026

(f)

240‌

243‌

Secured

Overnight

Financing

Rate

+

1.54%

2.01%,

09/22/2028

(f)

300‌

303‌

Secured

Overnight

Financing

Rate

+

1.73%

2.10%,

06/04/2026

(f)

310‌

319‌

Secured

Overnight

Financing

Rate

+

1.93%

2.36%,

08/18/2031

(f)

200‌

201‌

Secured

Overnight

Financing

Rate

+

1.95%

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

HSBC

Holdings

PLC

(continued)

2.63%,

11/07/2025

(f)

$

225‌

$

236‌

Secured

Overnight

Financing

Rate

+

1.40%

2.85%,

06/04/2031

(f)

200‌

209‌

Secured

Overnight

Financing

Rate

+

2.39%

3.90%,

05/25/2026

500‌

556‌

3.97%,

05/22/2030

(f)

300‌

336‌

3

Month

USD

LIBOR

+

1.61%

4.58%,

06/19/2029

(f)

240‌

277‌

3

Month

USD

LIBOR

+

1.53%

6.50%,

09/15/2037

100‌

140‌

HSBC

USA

Inc

3.50%,

06/23/2024

500‌

539‌

Huntington

National

Bank/The

1.80%,

02/03/2023

325‌

332‌

ING

Groep

NV

3.55%,

04/09/2024

300‌

322‌

4.55%,

10/02/2028

300‌

354‌

JPMorgan

Chase

&

Co

0.56%,

02/16/2025

(f)

60‌

Secured

Overnight

Financing

Rate

+

0.42%

0.65%,

09/16/2024

(f)

195‌

196‌

Secured

Overnight

Financing

Rate

+

0.60%

0.77%,

08/09/2025

(f)

115‌

Secured

Overnight

Financing

Rate

+

0.49%

0.82%,

06/01/2025

(f)

370‌

371‌

Secured

Overnight

Financing

Rate

+

0.54%

0.97%,

06/23/2025

(f)

115‌

Secured

Overnight

Financing

Rate

+

0.58%

1.04%,

02/04/2027

(f)

115‌

114‌

Secured

Overnight

Financing

Rate

+

0.70%

1.05%,

11/19/2026

(f)

135‌

134‌

Secured

Overnight

Financing

Rate

+

0.80%

1.51%,

06/01/2024

(f)

220‌

224‌

Secured

Overnight

Financing

Rate

+

1.46%

1.58%,

04/22/2027

(f)

115‌

116‌

Secured

Overnight

Financing

Rate

+

0.89%

1.76%,

11/19/2031

(f)

135‌

131‌

Secured

Overnight

Financing

Rate

+

1.11%

1.95%,

02/04/2032

(f)

115‌

113‌

Secured

Overnight

Financing

Rate

+

1.07%

2.01%,

03/13/2026

(f)

155‌

160‌

Secured

Overnight

Financing

Rate

+

1.59%

2.07%,

06/01/2029

(f)

255‌

259‌

Secured

Overnight

Financing

Rate

+

1.02%

2.08%,

04/22/2026

(f)

145‌

150‌

Secured

Overnight

Financing

Rate

+

1.85%

2.18%,

06/01/2028

(f)

220‌

227‌

Secured

Overnight

Financing

Rate

+

1.89%

2.30%,

10/15/2025

(f)

320‌

333‌

Secured

Overnight

Financing

Rate

+

1.16%

2.53%,

11/19/2041

(f)

65‌

63‌

Secured

Overnight

Financing

Rate

+

1.51%

2.58%,

04/22/2032

(f)

115‌

119‌

Secured

Overnight

Financing

Rate

+

1.25%

2.96%,

05/13/2031

(f)

95‌

101‌

Secured

Overnight

Financing

Rate

+

2.52%

3.11%,

04/22/2041

(f)

235‌

248‌

Secured

Overnight

Financing

Rate

+

2.46%

3.11%,

04/22/2051

(f)

235‌

246‌

Secured

Overnight

Financing

Rate

+

2.44%

3.33%,

04/22/2052

(f)

115‌

125‌

Secured

Overnight

Financing

Rate

+

1.58%

3.51%,

01/23/2029

(f)

200‌

221‌

3

Month

USD

LIBOR

+

0.95%

3.56%,

04/23/2024

(f)

75‌

79‌

3

Month

USD

LIBOR

+

0.73%

Schedule

of

Investments

Bond

Market

Index

Fund

See

accompanying

notes.

79

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

JPMorgan

Chase

&

Co

(continued)

3.80%,

07/23/2024

(f)

$

180‌

$

191‌

3

Month

USD

LIBOR

+

0.89%

3.88%,

02/01/2024

85‌

92‌

3.88%,

09/10/2024

75‌

82‌

4.01%,

04/23/2029

(f)

350‌

397‌

3

Month

USD

LIBOR

+

1.12%

4.20%,

07/23/2029

(f)

230‌

264‌

3

Month

USD

LIBOR

+

1.26%

5.60%,

07/15/2041

370‌

521‌

KeyBank

NA/Cleveland

OH

0.42%,

01/03/2024

(f)

250‌

Secured

Overnight

Financing

Rate

+

0.34%

KeyCorp

2.25%,

04/06/2027

110‌

115‌

Korea

Development

Bank/The

0.40%,

06/19/2024

200‌

199‌

0.80%,

04/27/2026

200‌

198‌

Kreditanstalt

fuer

Wiederaufbau

0.00%,

06/29/2037

(d)

250‌

190‌

0.25%,

10/19/2023

305‌

0.25%,

03/08/2024

175‌

174‌

0.38%,

07/18/2025

315‌

312‌

0.50%,

09/20/2024

175‌

0.63%,

01/22/2026

155‌

154‌

2.13%,

01/17/2023

775‌

796‌

2.38%,

12/29/2022

440‌

453‌

2.50%,

11/20/2024

500‌

531‌

Landwirtschaftliche

Rentenbank

0.88%,

03/30/2026

175‌

176‌

2.38%,

06/10/2025

230‌

245‌

Lloyds

Banking

Group

PLC

4.58%,

12/10/2025

575‌

648‌

4.65%,

03/24/2026

475‌

539‌

Mitsubishi

UFJ

Financial

Group

Inc

0.95%,

07/19/2025

(f)

200‌

201‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.55%

1.41%,

07/17/2025

200‌

202‌

1.54%,

07/20/2027

(f)

200‌

201‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.75%

2.19%,

02/25/2025

200‌

208‌

2.80%,

07/18/2024

200‌

211‌

3.20%,

07/18/2029

200‌

218‌

3.75%,

07/18/2039

200‌

230‌

Mizuho

Financial

Group

Inc

1.24%,

07/10/2024

(f)

200‌

202‌

Secured

Overnight

Financing

Rate

+

1.25%

2.20%,

07/10/2031

(f)

200‌

Secured

Overnight

Financing

Rate

+

1.77%

2.23%,

05/25/2026

(f)

200‌

207‌

3

Month

USD

LIBOR

+

0.83%

2.84%,

07/16/2025

(f)

200‌

211‌

Secured

Overnight

Financing

Rate

+

1.24%

Morgan

Stanley

0.53%,

01/25/2024

(f)

100‌

Secured

Overnight

Financing

Rate

+

0.46%

0.56%,

11/10/2023

(f)

135‌

Secured

Overnight

Financing

Rate

+

0.47%

0.73%,

04/05/2024

(f)

210‌

211‌

Secured

Overnight

Financing

Rate

+

0.62%

0.79%,

01/22/2025

(f)

115‌

Secured

Overnight

Financing

Rate

+

0.51%

0.79%,

05/30/2025

(f)

115‌

Secured

Overnight

Financing

Rate

+

0.53%

0.99%,

12/10/2026

(f)

80‌

79‌

Secured

Overnight

Financing

Rate

+

0.72%

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

Morgan

Stanley

(continued)

1.51%,

07/20/2027

(f)

$

115‌

$

115‌

Secured

Overnight

Financing

Rate

+

0.86%

1.59%,

05/04/2027

(f)

155‌

156‌

Secured

Overnight

Financing

Rate

+

0.88%

1.79%,

02/13/2032

(f)

135‌

131‌

Secured

Overnight

Financing

Rate

+

1.03%

1.93%,

04/28/2032

(f)

95‌

93‌

Secured

Overnight

Financing

Rate

+

1.02%

2.24%,

07/21/2032

(f)

115‌

Secured

Overnight

Financing

Rate

+

1.18%

2.72%,

07/22/2025

(f)

255‌

268‌

Secured

Overnight

Financing

Rate

+

1.15%

2.80%,

01/25/2052

(f)

210‌

209‌

Secured

Overnight

Financing

Rate

+

1.43%

3.13%,

01/23/2023

220‌

229‌

3.22%,

04/22/2042

(f)

60‌

64‌

Secured

Overnight

Financing

Rate

+

1.49%

3.59%,

07/22/2028

(f)

90‌

100‌

3

Month

USD

LIBOR

+

1.34%

3.63%,

01/20/2027

95‌

106‌

3.75%,

02/25/2023

150‌

157‌

3.88%,

04/29/2024

75‌

81‌

3.95%,

04/23/2027

60‌

67‌

4.00%,

07/23/2025

25‌

28‌

4.30%,

01/27/2045

320‌

398‌

5.00%,

11/24/2025

75‌

86‌

6.38%,

07/24/2042

315‌

487‌

National

Australia

Bank

Ltd/New

York

1.88%,

12/13/2022

250‌

255‌

Natwest

Group

PLC

1.64%,

06/14/2027

(f)

200‌

201‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.90%

5.08%,

01/27/2030

(f)

400‌

480‌

3

Month

USD

LIBOR

+

1.91%

Oesterreichische

Kontrollbank

AG

0.38%,

09/17/2025

305‌

301‌

PNC

Financial

Services

Group

Inc/The

2.20%,

11/01/2024

120‌

126‌

2.31%,

04/23/2032

(f)

245‌

252‌

Secured

Overnight

Financing

Rate

+

0.98%

2.60%,

07/23/2026

110‌

118‌

Royal

Bank

of

Canada

0.43%,

01/19/2024

115‌

0.50%,

10/26/2023

100‌

1.15%,

07/14/2026

60‌

1.20%,

04/27/2026

115‌

1.95%,

01/17/2023

265‌

271‌

Santander

Holdings

USA

Inc

3.40%,

01/18/2023

75‌

78‌

Santander

UK

Group

Holdings

PLC

1.53%,

08/21/2026

(f)

200‌

201‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

1.25%

3.57%,

01/10/2023

500‌

506‌

State

Street

Corp

2.20%,

03/03/2031

60‌

61‌

2.35%,

11/01/2025

(f)

110‌

116‌

Secured

Overnight

Financing

Rate

+

0.94%

3.10%,

05/15/2023

50‌

52‌

3.30%,

12/16/2024

75‌

81‌

3.70%,

11/20/2023

75‌

81‌

Sumitomo

Mitsui

Financial

Group

Inc

1.47%,

07/08/2025

200‌

203‌

2.13%,

07/08/2030

200‌

201‌

2.14%,

09/23/2030

150‌

147‌

2.35%,

01/15/2025

200‌

209‌

Schedule

of

Investments

Bond

Market

Index

Fund

See

accompanying

notes.

80

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

Sumitomo

Mitsui

Financial

Group

Inc

(continued)

3.01%,

10/19/2026

$

75‌

$

81‌

3.04%,

07/16/2029

200‌

215‌

3.45%,

01/11/2027

165‌

182‌

Toronto-Dominion

Bank/The

0.25%,

01/06/2023

110‌

0.45%,

09/11/2023

240‌

0.75%,

06/12/2023

125‌

126‌

1.15%,

06/12/2025

125‌

126‌

1.20%,

06/03/2026

60‌

Truist

Bank

1.25%,

03/09/2023

250‌

254‌

Truist

Financial

Corp

1.20%,

08/05/2025

(e)

60‌

61‌

1.27%,

03/02/2027

(f)

195‌

196‌

Secured

Overnight

Financing

Rate

+

0.61%

1.89%,

06/07/2029

(f)

130‌

132‌

Secured

Overnight

Financing

Rate

+

0.86%

1.95%,

06/05/2030

60‌

61‌

4.00%,

05/01/2025

75‌

83‌

US

Bancorp

1.38%,

07/22/2030

110‌

106‌

2.40%,

07/30/2024

190‌

200‌

Wells

Fargo

&

Co

0.81%,

05/19/2025

(f)

175‌

176‌

Secured

Overnight

Financing

Rate

+

0.51%

1.65%,

06/02/2024

(f)

220‌

225‌

Secured

Overnight

Financing

Rate

+

1.60%

2.19%,

04/30/2026

(f)

485‌

504‌

Secured

Overnight

Financing

Rate

+

2.00%

2.39%,

06/02/2028

(f)

220‌

229‌

Secured

Overnight

Financing

Rate

+

2.10%

3.07%,

04/30/2041

(f)

485‌

508‌

Secured

Overnight

Financing

Rate

+

2.53%

3.55%,

09/29/2025

75‌

82‌

3.58%,

05/22/2028

(f)

375‌

416‌

3

Month

USD

LIBOR

+

1.31%

4.75%,

12/07/2046

250‌

318‌

4.90%,

11/17/2045

75‌

97‌

5.38%,

11/02/2043

185‌

249‌

Westpac

Banking

Corp

1.15%,

06/03/2026

60‌

2.00%,

01/13/2023

155‌

159‌

2.15%,

06/03/2031

60‌

61‌

2.35%,

02/19/2025

150‌

158‌

2.89%,

02/04/2030

(f)

155‌

161‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

1.35%

4.11%,

07/24/2034

(f)

145‌

160‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.00%

$

51,197‌

Beverages

-

0.59%

Anheuser-Busch

Cos

LLC

/

Anheuser-Busch

InBev

Worldwide

Inc

4.70%,

02/01/2036

250‌

308‌

4.90%,

02/01/2046

250‌

319‌

Anheuser-Busch

InBev

Finance

Inc

4.63%,

02/01/2044

75‌

91‌

Anheuser-Busch

InBev

Worldwide

Inc

3.50%,

06/01/2030

130‌

145‌

4.35%,

06/01/2040

130‌

156‌

4.50%,

06/01/2050

130‌

162‌

4.60%,

04/15/2048

35‌

43‌

4.75%,

04/15/2058

75‌

95‌

4.95%,

01/15/2042

25‌

32‌

5.45%,

01/23/2039

200‌

264‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Beverages

(continued)

Anheuser-Busch

InBev

Worldwide

Inc

(continued)

5.80%,

01/23/2059

$

210‌

$

311‌

8.20%,

01/15/2039

60‌

101‌

Coca-Cola

Co/The

1.00%,

03/15/2028

265‌

259‌

1.50%,

03/05/2028

60‌

1.75%,

09/06/2024

140‌

146‌

2.25%,

01/05/2032

60‌

62‌

2.50%,

06/01/2040

140‌

2.50%,

03/15/2051

115‌

112‌

2.60%,

06/01/2050

140‌

139‌

2.88%,

05/05/2041

60‌

63‌

3.00%,

03/05/2051

90‌

96‌

Constellation

Brands

Inc

2.25%,

08/01/2031

150‌

3.15%,

08/01/2029

90‌

97‌

Diageo

Capital

PLC

2.13%,

10/24/2024

200‌

209‌

Fomento

Economico

Mexicano

SAB

de

CV

3.50%,

01/16/2050

160‌

171‌

Keurig

Dr

Pepper

Inc

2.25%,

03/15/2031

60‌

61‌

3.35%,

03/15/2051

60‌

64‌

4.42%,

05/25/2025

75‌

84‌

4.99%,

05/25/2038

250‌

319‌

Molson

Coors

Beverage

Co

3.00%,

07/15/2026

105‌

113‌

4.20%,

07/15/2046

250‌

282‌

PepsiCo

Inc

0.40%,

10/07/2023

100‌

0.75%,

05/01/2023

95‌

96‌

1.40%,

02/25/2031

130‌

127‌

2.75%,

03/01/2023

75‌

78‌

2.85%,

02/24/2026

90‌

97‌

2.88%,

10/15/2049

145‌

152‌

$

5,304‌

Biotechnology

-

0.32%

Amgen

Inc

1.65%,

08/15/2028

125‌

2.00%,

01/15/2032

120‌

118‌

2.25%,

08/19/2023

60‌

62‌

2.45%,

02/21/2030

155‌

160‌

3.00%,

01/15/2052

120‌

3.15%,

02/21/2040

155‌

164‌

3.38%,

02/21/2050

155‌

165‌

5.15%,

11/15/2041

113‌

148‌

Biogen

Inc

4.05%,

09/15/2025

160‌

178‌

5.20%,

09/15/2045

30‌

41‌

Gilead

Sciences

Inc

1.65%,

10/01/2030

150‌

146‌

2.60%,

10/01/2040

75‌

73‌

2.80%,

10/01/2050

150‌

146‌

2.95%,

03/01/2027

240‌

259‌

3.50%,

02/01/2025

75‌

81‌

3.65%,

03/01/2026

75‌

83‌

4.15%,

03/01/2047

25‌

30‌

Regeneron

Pharmaceuticals

Inc

1.75%,

09/15/2030

160‌

154‌

Royalty

Pharma

PLC

0.75%,

09/02/2023

155‌

156‌

1.75%,

09/02/2027

155‌

2.20%,

09/02/2030

155‌

154‌

3.30%,

09/02/2040

155‌

157‌

$

2,875‌

Schedule

of

Investments

Bond

Market

Index

Fund

See

accompanying

notes.

81

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Building

Materials

-

0.17%

Carrier

Global

Corp

2.24%,

02/15/2025

$

155‌

$

162‌

2.49%,

02/15/2027

155‌

163‌

3.38%,

04/05/2040

155‌

166‌

3.58%,

04/05/2050

155‌

169‌

Johnson

Controls

International

plc

5.13%,

09/14/2045

47‌

63‌

Martin

Marietta

Materials

Inc

0.65%,

07/15/2023

60‌

2.50%,

03/15/2030

155‌

160‌

3.20%,

07/15/2051

60‌

62‌

Masco

Corp

1.50%,

02/15/2028

60‌

59‌

Owens

Corning

4.30%,

07/15/2047

150‌

176‌

Vulcan

Materials

Co

3.50%,

06/01/2030

295‌

328‌

$

1,568‌

Chemicals

-

0.34%

Dow

Chemical

Co/The

2.10%,

11/15/2030

160‌

161‌

3.60%,

11/15/2050

160‌

176‌

DuPont

de

Nemours

Inc

4.21%,

11/15/2023

50‌

54‌

5.32%,

11/15/2038

145‌

192‌

5.42%,

11/15/2048

185‌

262‌

Eastman

Chemical

Co

4.65%,

10/15/2044

75‌

92‌

Ecolab

Inc

1.30%,

01/30/2031

150‌

144‌

2.13%,

08/15/2050

150‌

137‌

EI

du

Pont

de

Nemours

and

Co

1.70%,

07/15/2025

60‌

62‌

Linde

Inc/CT

1.10%,

08/10/2030

160‌

151‌

LYB

International

Finance

II

BV

3.50%,

03/02/2027

300‌

330‌

LYB

International

Finance

III

LLC

1.25%,

10/01/2025

65‌

2.25%,

10/01/2030

130‌

132‌

3.63%,

04/01/2051

130‌

141‌

4.20%,

10/15/2049

160‌

188‌

Mosaic

Co/The

4.25%,

11/15/2023

300‌

321‌

5.63%,

11/15/2043

25‌

33‌

Nutrien

Ltd

1.90%,

05/13/2023

95‌

97‌

3.00%,

04/01/2025

150‌

159‌

PPG

Industries

Inc

1.20%,

03/15/2026

60‌

Westlake

Chemical

Corp

3.13%,

08/15/2051

60‌

58‌

$

3,015‌

Commercial

Mortgage

Backed

Securities

-

0.78%

Citigroup

Commercial

Mortgage

Trust

2013-GC15

4.37%,

09/10/2046

(g)

500‌

535‌

COMM

2012-CCRE4

Mortgage

Trust

3.25%,

10/15/2045

500‌

504‌

COMM

2015-PC1

Mortgage

Trust

3.90%,

07/10/2050

885‌

971‌

Fannie

Mae-Aces

2.51%,

11/25/2022

(g)

699‌

710‌

3.08%,

12/25/2027

(g)

998‌

1,097‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Commercial

Mortgage

Backed

Securities

(continued)

Freddie

Mac

Multifamily

Structured

Pass

Through

Certificates

2.87%,

12/25/2021

$

145‌

$

145‌

3.17%,

10/25/2024

1,000‌

1,075‌

3.21%,

03/25/2025

1,248‌

1,351‌

JPMBB

Commercial

Mortgage

Securities

Trust

2014-C19

3.67%,

04/15/2047

166‌

167‌

Morgan

Stanley

Bank

of

America

Merrill

Lynch

Trust

2015-C21

3.15%,

03/15/2048

418‌

434‌

$

6,989‌

Commercial

Services

-

0.24%

American

University/The

3.67%,

04/01/2049

35‌

41‌

Automatic

Data

Processing

Inc

1.70%,

05/15/2028

60‌

61‌

California

Institute

of

Technology

4.32%,

08/01/2045

50‌

66‌

Global

Payments

Inc

1.20%,

03/01/2026

45‌

2.65%,

02/15/2025

140‌

147‌

3.20%,

08/15/2029

140‌

150‌

4.15%,

08/15/2049

70‌

81‌

Massachusetts

Institute

of

Technology

3.96%,

07/01/2038

185‌

223‌

4.68%,

07/01/2114

100‌

152‌

Moody's

Corp

2.55%,

08/18/2060

160‌

144‌

5.25%,

07/15/2044

90‌

123‌

PayPal

Holdings

Inc

1.35%,

06/01/2023

155‌

158‌

2.20%,

09/26/2022

145‌

148‌

2.40%,

10/01/2024

145‌

153‌

2.85%,

10/01/2029

145‌

156‌

S&P

Global

Inc

1.25%,

08/15/2030

160‌

152‌

2.50%,

12/01/2029

55‌

58‌

3.25%,

12/01/2049

55‌

60‌

University

of

Southern

California

5.25%,

10/01/2111

20‌

32‌

$

2,150‌

Computers

-

0.74%

Apple

Inc

0.70%,

02/08/2026

275‌

273‌

1.20%,

02/08/2028

285‌

282‌

1.40%,

08/05/2028

60‌

1.65%,

02/08/2031

140‌

139‌

1.70%,

08/05/2031

115‌

114‌

2.38%,

02/08/2041

140‌

137‌

2.40%,

01/13/2023

75‌

77‌

2.40%,

05/03/2023

75‌

78‌

2.40%,

08/20/2050

210‌

199‌

2.55%,

08/20/2060

105‌

99‌

2.65%,

02/08/2051

140‌

139‌

2.70%,

08/05/2051

85‌

2.80%,

02/08/2061

140‌

2.95%,

09/11/2049

140‌

146‌

3.20%,

05/11/2027

110‌

122‌

3.75%,

11/13/2047

195‌

230‌

4.38%,

05/13/2045

80‌

102‌

4.65%,

02/23/2046

170‌

226‌

Dell

International

LLC

/

EMC

Corp

4.00%,

07/15/2024

300‌

326‌

5.30%,

10/01/2029

300‌

365‌

5.45%,

06/15/2023

105‌

113‌

6.02%,

06/15/2026

300‌

358‌

8.35%,

07/15/2046

105‌

172‌

Schedule

of

Investments

Bond

Market

Index

Fund

See

accompanying

notes.

82

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Computers

(continued)

DXC

Technology

Co

4.75%,

04/15/2027

$

100‌

$

115‌

Hewlett

Packard

Enterprise

Co

1.45%,

04/01/2024

455‌

463‌

2.25%,

04/01/2023

140‌

144‌

4.45%,

10/02/2023

160‌

173‌

4.90%,

10/15/2025

200‌

228‌

6.20%,

10/15/2035

75‌

102‌

HP

Inc

1.45%,

06/17/2026

(h)

60‌

3.00%,

06/17/2027

140‌

151‌

6.00%,

09/15/2041

355‌

469‌

International

Business

Machines

Corp

3.50%,

05/15/2029

160‌

179‌

4.15%,

05/15/2039

195‌

234‌

4.70%,

02/19/2046

145‌

191‌

NetApp

Inc

2.38%,

06/22/2027

155‌

162‌

$

6,653‌

Consumer

Products

-

0.03%

Church

&

Dwight

Co

Inc

3.95%,

08/01/2047

200‌

241‌

Cosmetics

&

Personal

Care

-

0.13%

Estee

Lauder

Cos

Inc/The

1.95%,

03/15/2031

160‌

162‌

Procter

&

Gamble

Co/The

0.55%,

10/29/2025

180‌

179‌

1.20%,

10/29/2030

280‌

270‌

3.55%,

03/25/2040

155‌

183‌

Unilever

Capital

Corp

1.38%,

09/14/2030

150‌

146‌

2.60%,

05/05/2024

200‌

211‌

$

1,151‌

Diversified

Financial

Services

-

0.74%

AerCap

Ireland

Capital

DAC

/

AerCap

Global

Aviation

Trust

1.75%,

01/30/2026

150‌

148‌

2.88%,

08/14/2024

225‌

235‌

Air

Lease

Corp

2.10%,

09/01/2028

115‌

113‌

2.25%,

01/15/2023

195‌

200‌

2.30%,

02/01/2025

585‌

605‌

Ally

Financial

Inc

1.45%,

10/02/2023

55‌

56‌

8.00%,

11/01/2031

170‌

249‌

American

Express

Co

2.50%,

07/30/2024

220‌

232‌

2.65%,

12/02/2022

75‌

77‌

Brookfield

Finance

Inc

2.72%,

04/15/2031

60‌

62‌

3.50%,

03/30/2051

150‌

158‌

Capital

One

Financial

Corp

2.36%,

07/29/2032

(f)

60‌

Secured

Overnight

Financing

Rate

+

1.34%

3.20%,

02/05/2025

60‌

65‌

3.30%,

10/30/2024

75‌

81‌

Charles

Schwab

Corp/The

0.90%,

03/11/2026

140‌

1.15%,

05/13/2026

60‌

1.65%,

03/11/2031

140‌

137‌

1.95%,

12/01/2031

60‌

2.00%,

03/20/2028

115‌

118‌

CME

Group

Inc

3.00%,

09/15/2022

50‌

51‌

Discover

Financial

Services

4.10%,

02/09/2027

75‌

84‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Diversified

Financial

Services

(continued)

GE

Capital

International

Funding

Co

Unlimited

Co

4.42%,

11/15/2035

$

315‌

$

382‌

Intercontinental

Exchange

Inc

0.70%,

06/15/2023

160‌

161‌

1.85%,

09/15/2032

120‌

116‌

2.65%,

09/15/2040

160‌

156‌

3.00%,

09/15/2060

160‌

158‌

3.75%,

12/01/2025

75‌

83‌

Legg

Mason

Inc

5.63%,

01/15/2044

25‌

35‌

Mastercard

Inc

2.95%,

03/15/2051

60‌

63‌

3.35%,

03/26/2030

75‌

85‌

3.38%,

04/01/2024

150‌

161‌

Nasdaq

Inc

2.50%,

12/21/2040

55‌

52‌

Nomura

Holdings

Inc

1.85%,

07/16/2025

315‌

322‌

2.68%,

07/16/2030

315‌

322‌

Synchrony

Financial

4.25%,

08/15/2024

290‌

315‌

4.50%,

07/23/2025

575‌

640‌

Visa

Inc

1.10%,

02/15/2031

160‌

152‌

1.90%,

04/15/2027

80‌

83‌

2.00%,

08/15/2050

160‌

142‌

2.70%,

04/15/2040

155‌

161‌

2.80%,

12/14/2022

75‌

77‌

$

6,657‌

Electric

-

2.02%

AEP

Texas

Inc

2.10%,

07/01/2030

160‌

159‌

3.45%,

01/15/2050

50‌

53‌

3.45%,

05/15/2051

60‌

64‌

AEP

Transmission

Co

LLC

2.75%,

08/15/2051

60‌

59‌

AES

Corp/The

2.45%,

01/15/2031

60‌

61‌

Alabama

Power

Co

1.45%,

09/15/2030

155‌

150‌

3.13%,

07/15/2051

60‌

63‌

Ameren

Corp

1.75%,

03/15/2028

60‌

Ameren

Illinois

Co

1.55%,

11/15/2030

65‌

63‌

3.25%,

03/15/2050

75‌

82‌

American

Electric

Power

Co

Inc

1.00%,

11/01/2025

15‌

2.30%,

03/01/2030

155‌

156‌

Arizona

Public

Service

Co

2.60%,

08/15/2029

90‌

95‌

2.65%,

09/15/2050

150‌

141‌

Baltimore

Gas

and

Electric

Co

2.25%,

06/15/2031

60‌

61‌

Berkshire

Hathaway

Energy

Co

1.65%,

05/15/2031

65‌

63‌

2.85%,

05/15/2051

85‌

83‌

3.80%,

07/15/2048

125‌

143‌

CenterPoint

Energy

Houston

Electric

LLC

3.35%,

04/01/2051

60‌

67‌

CenterPoint

Energy

Inc

1.45%,

06/01/2026

60‌

2.95%,

03/01/2030

100‌

107‌

3.70%,

09/01/2049

60‌

66‌

Schedule

of

Investments

Bond

Market

Index

Fund

See

accompanying

notes.

83

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Electric

(continued)

CMS

Energy

Corp

3.75%,

12/01/2050

(f)

$

60‌

$

61‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.90%

Commonwealth

Edison

Co

3.00%,

03/01/2050

155‌

161‌

3.13%,

03/15/2051

60‌

64‌

4.70%,

01/15/2044

150‌

195‌

Connecticut

Light

and

Power

Co/The

0.75%,

12/01/2025

60‌

2.05%,

07/01/2031

60‌

61‌

3.20%,

03/15/2027

140‌

155‌

Consolidated

Edison

Co

of

New

York

Inc

2.40%,

06/15/2031

55‌

56‌

3.00%,

12/01/2060

65‌

62‌

3.70%,

11/15/2059

80‌

87‌

3.88%,

06/15/2047

300‌

341‌

Consumers

Energy

Co

2.50%,

05/01/2060

155‌

142‌

Dominion

Energy

Inc

1.45%,

04/15/2026

60‌

3.30%,

04/15/2041

60‌

64‌

3.38%,

04/01/2030

155‌

170‌

DTE

Electric

Co

1.90%,

04/01/2028

40‌

41‌

3.70%,

03/15/2045

200‌

230‌

DTE

Energy

Co

0.55%,

11/01/2022

150‌

1.05%,

06/01/2025

80‌

2.25%,

11/01/2022

145‌

148‌

Duke

Energy

Carolinas

LLC

4.00%,

09/30/2042

145‌

172‌

5.30%,

02/15/2040

125‌

171‌

Duke

Energy

Corp

0.90%,

09/15/2025

150‌

149‌

2.65%,

09/01/2026

90‌

96‌

3.15%,

08/15/2027

90‌

98‌

3.30%,

06/15/2041

60‌

62‌

3.50%,

06/15/2051

60‌

63‌

Duke

Energy

Florida

LLC

1.75%,

06/15/2030

155‌

153‌

2.50%,

12/01/2029

125‌

132‌

3.40%,

10/01/2046

200‌

221‌

Duke

Energy

Indiana

LLC

2.75%,

04/01/2050

155‌

152‌

Duke

Energy

Ohio

Inc

2.13%,

06/01/2030

155‌

157‌

Duke

Energy

Progress

LLC

2.50%,

08/15/2050

160‌

150‌

Emera

US

Finance

LP

4.75%,

06/15/2046

75‌

89‌

Entergy

Arkansas

LLC

2.65%,

06/15/2051

45‌

43‌

Entergy

Corp

1.90%,

06/15/2028

35‌

2.40%,

06/15/2031

60‌

Entergy

Louisiana

LLC

2.90%,

03/15/2051

35‌

3.10%,

06/15/2041

60‌

64‌

3.12%,

09/01/2027

200‌

219‌

Entergy

Texas

Inc

1.75%,

03/15/2031

150‌

144‌

4.00%,

03/30/2029

170‌

193‌

Evergy

Inc

2.45%,

09/15/2024

140‌

146‌

Evergy

Metro

Inc

2.25%,

06/01/2030

155‌

159‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Electric

(continued)

Eversource

Energy

0.80%,

08/15/2025

$

160‌

$

158‌

1.65%,

08/15/2030

160‌

155‌

Exelon

Corp

4.95%,

06/15/2035

320‌

398‌

Florida

Power

&

Light

Co

3.70%,

12/01/2047

70‌

84‌

4.05%,

10/01/2044

145‌

178‌

5.65%,

02/01/2037

250‌

347‌

Georgia

Power

Co

2.20%,

09/15/2024

140‌

146‌

3.25%,

03/30/2027

750‌

814‌

Interstate

Power

and

Light

Co

2.30%,

06/01/2030

40‌

41‌

Kentucky

Utilities

Co

3.30%,

06/01/2050

155‌

167‌

MidAmerican

Energy

Co

3.15%,

04/15/2050

145‌

154‌

Mississippi

Power

Co

4.25%,

03/15/2042

30‌

36‌

National

Rural

Utilities

Cooperative

Finance

Corp

0.35%,

02/08/2024

245‌

244‌

1.00%,

06/15/2026

60‌

2.85%,

01/27/2025

100‌

106‌

NextEra

Energy

Capital

Holdings

Inc

0.65%,

03/01/2023

60‌

1.90%,

06/15/2028

45‌

46‌

2.25%,

06/01/2030

250‌

255‌

2.75%,

11/01/2029

105‌

111‌

Northern

States

Power

Co/MN

2.25%,

04/01/2031

60‌

62‌

2.60%,

06/01/2051

155‌

151‌

2.90%,

03/01/2050

70‌

73‌

5.35%,

11/01/2039

30‌

42‌

Ohio

Power

Co

1.63%,

01/15/2031

265‌

258‌

Oncor

Electric

Delivery

Co

LLC

0.55%,

10/01/2025

150‌

147‌

3.10%,

09/15/2049

195‌

209‌

Pacific

Gas

and

Electric

Co

1.37%,

03/10/2023

60‌

2.10%,

08/01/2027

605‌

585‌

2.50%,

02/01/2031

130‌

122‌

3.30%,

08/01/2040

155‌

143‌

3.50%,

08/01/2050

200‌

180‌

4.20%,

06/01/2041

60‌

59‌

PacifiCorp

2.90%,

06/15/2052

60‌

PECO

Energy

Co

2.38%,

09/15/2022

105‌

107‌

2.80%,

06/15/2050

110‌

111‌

PPL

Electric

Utilities

Corp

3.00%,

10/01/2049

70‌

74‌

Public

Service

Co

of

Colorado

1.88%,

06/15/2031

45‌

2.70%,

01/15/2051

95‌

96‌

Public

Service

Electric

and

Gas

Co

2.05%,

08/01/2050

160‌

142‌

3.15%,

01/01/2050

155‌

167‌

3.65%,

09/01/2028

200‌

227‌

Public

Service

Enterprise

Group

Inc

0.80%,

08/15/2025

320‌

317‌

San

Diego

Gas

&

Electric

Co

1.70%,

10/01/2030

150‌

146‌

3.32%,

04/15/2050

155‌

167‌

4.50%,

08/15/2040

175‌

218‌

Sempra

Energy

4.00%,

02/01/2048

70‌

79‌

Schedule

of

Investments

Bond

Market

Index

Fund

See

accompanying

notes.

84

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Electric

(continued)

Southern

California

Edison

Co

0.70%,

04/03/2023

$

115‌

$

115‌

2.25%,

06/01/2030

155‌

2.85%,

08/01/2029

100‌

105‌

4.00%,

04/01/2047

70‌

74‌

5.50%,

03/15/2040

350‌

441‌

5.95%,

02/01/2038

30‌

39‌

Southern

Co/The

1.75%,

03/15/2028

60‌

2.95%,

07/01/2023

105‌

109‌

3.75%,

09/15/2051

(f)

40‌

41‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.92%

4.00%,

01/15/2051

(f)

150‌

159‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.73%

Southern

Power

Co

0.90%,

01/15/2026

10‌

4.95%,

12/15/2046

35‌

43‌

Southwestern

Public

Service

Co

4.50%,

08/15/2041

300‌

374‌

Tampa

Electric

Co

3.45%,

03/15/2051

100‌

110‌

Tucson

Electric

Power

Co

1.50%,

08/01/2030

105‌

101‌

3.25%,

05/01/2051

60‌

63‌

Union

Electric

Co

2.15%,

03/15/2032

60‌

61‌

2.63%,

03/15/2051

130‌

127‌

Virginia

Electric

and

Power

Co

2.45%,

12/15/2050

145‌

135‌

8.88%,

11/15/2038

225‌

404‌

WEC

Energy

Group

Inc

0.55%,

09/15/2023

150‌

1.38%,

10/15/2027

130‌

128‌

3.55%,

06/15/2025

59‌

64‌

Xcel

Energy

Inc

0.50%,

10/15/2023

75‌

2.60%,

12/01/2029

140‌

147‌

$

18,119‌

Electrical

Components

&

Equipment

-

0.02%

Emerson

Electric

Co

0.88%,

10/15/2026

225‌

222‌

Electronics

-

0.09%

Agilent

Technologies

Inc

2.10%,

06/04/2030

155‌

2.30%,

03/12/2031

60‌

61‌

Arrow

Electronics

Inc

4.50%,

03/01/2023

30‌

31‌

Honeywell

International

Inc

1.10%,

03/01/2027

60‌

1.35%,

06/01/2025

80‌

82‌

1.75%,

09/01/2031

60‌

2.80%,

06/01/2050

(e)

155‌

162‌

3.81%,

11/21/2047

100‌

121‌

Jabil

Inc

1.70%,

04/15/2026

60‌

61‌

Tyco

Electronics

Group

SA

7.13%,

10/01/2037

37‌

57‌

$

850‌

Environmental

Control

-

0.07%

Republic

Services

Inc

1.75%,

02/15/2032

35‌

34‌

2.30%,

03/01/2030

85‌

87‌

3.38%,

11/15/2027

175‌

193‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Environmental

Control

(continued)

Waste

Management

Inc

0.75%,

11/15/2025

$

210‌

$

209‌

2.00%,

06/01/2029

60‌

61‌

2.50%,

11/15/2050

75‌

71‌

$

655‌

Federal

&

Federally

Sponsored

Credit

-

1.88%

Federal

Farm

Credit

Banks

Funding

Corp

0.10%,

12/27/2021

(k)

11,000‌

11,001‌

1

Month

USD

LIBOR

+

0.02%

0.12%,

01/12/2023

(k)

15,300‌

15,299‌

0.13%,

11/23/2022

(k)

2,500‌

2,501‌

0.13%,

03/09/2023

(k)

8,000‌

7,997‌

0.13%,

04/13/2023

(k)

4,400‌

4,397‌

0.13%,

04/27/2023

(k)

5,100‌

5,095‌

0.14%,

09/23/2022

2,400‌

2,402‌

Secured

Overnight

Financing

Rate

+

0.09%

0.17%,

10/21/2022

(k)

1,200‌

0.17%,

11/30/2022

(k)

1,000‌

0.19%,

12/13/2021

2,100‌

2,101‌

1

Month

USD

LIBOR

+

0.09%

0.22%,

11/05/2021

(k)

15,000‌

15,004‌

1

Month

USD

LIBOR

+

0.13%

0.28%,

05/27/2022

(k)

12,000‌

12,017‌

Federal

Reserve

Bank

Prime

Loan

Rate

US

+

(2.97)%

0.33%,

01/18/2022

(k)

1,500‌

1,501‌

1

Month

USD

LIBOR

+

0.24%

1.64%,

01/24/2023

(k)

1,100‌

1,107‌

$

82,622‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Finance

-

Mortgage

Loan/Banker

-

3.79%

Fannie

Mae

0.16%,

03/04/2022

(k)

$

17,000‌

$

17,008‌

Secured

Overnight

Financing

Rate

+

0.22%

0.23%,

05/13/2022

(k)

7,000‌

7,009‌

Secured

Overnight

Financing

Rate

+

0.18%

0.28%,

05/06/2022

(k)

14,000‌

14,018‌

Secured

Overnight

Financing

Rate

+

0.23%

0.37%,

10/22/2021

1,000‌

Secured

Overnight

Financing

Rate

+

0.32%

0.40%,

04/07/2022

(k),(l)

40,000‌

40,080‌

Secured

Overnight

Financing

Rate

+

0.35%

0.44%,

04/15/2022

(k)

10,000‌

10,023‌

Secured

Overnight

Financing

Rate

+

0.39%

Federal

Farm

Credit

Discount

Notes

0.03%,

02/08/2022

(m)

2,000‌

Federal

Home

Loan

Banks

0.10%,

10/15/2021

(k)

14,000‌

14,001‌

1

Month

USD

LIBOR

+

0.00%

0.11%,

11/10/2022

(k)

14,000‌

14,006‌

Secured

Overnight

Financing

Rate

+

0.07%

2.00%,

09/09/2022

(k)

9,700‌

9,891‌

2.13%,

06/10/2022

(k)

5,000‌

5,078‌

Freddie

Mac

0.20%,

12/09/2021

(k)

6,000‌

6,002‌

Secured

Overnight

Financing

Rate

+

0.15%

0.20%,

03/04/2022

2,000‌

2,001‌

Secured

Overnight

Financing

Rate

+

0.15%

0.20%,

12/30/2022

(k)

9,000‌

9,001‌

0.24%,

06/02/2022

(k)

15,000‌

15,021‌

Secured

Overnight

Financing

Rate

+

0.19%

$

166,139‌

Media

-

0.00%

iHeartCommunications

Inc

8.38%,

05/01/2027

1‌

Oil

&

Gas

-

0.00%

SA

Global

Sukuk

Ltd

2.69%,

06/17/2031

(f)

200‌

205‌

Regional

Authority

-

0.06%

State

of

North

Rhine-Westphalia

Germany

0.00%,

01/15/2029

(d)

EUR

1,100‌

1,322‌

0.20%,

04/09/2030

955‌

1,163‌

$

2,485‌

Sovereign

-

0.51%

Chile

Government

International

Bond

2.55%,

07/27/2033

$

785‌

799‌

Colombia

Government

International

Bond

3.00%,

01/30/2030

(e)

1,060‌

1,039‌

3.25%,

04/22/2032

325‌

317‌

European

Union

0.00%,

10/04/2030

(d)

EUR

2,850‌

3,430‌

0.30%,

11/04/2050

1,120‌

1,274‌

0.75%,

04/04/2031

470‌

605‌

1.25%,

04/04/2033

765‌

1,034‌

French

Republic

Government

Bond

OAT

0.75%,

05/25/2052

(f)

1,090‌

1,281‌

Italy

Buoni

Poliennali

Del

Tesoro

1.70%,

09/01/2051

(f)

1,275‌

1,504‌

Japanese

Government

CPI

Linked

Bond

0.10%,

03/10/2028

JPY

505‌

5‌

Mexico

Government

International

Bond

1.45%,

10/25/2033

EUR

565‌

641‌

2.13%,

10/25/2051

335‌

343‌

New

Zealand

Government

Bond

1.75%,

05/15/2041

NZD

793‌

492‌

New

Zealand

Government

Inflation

Linked

Bond

2.00%,

09/20/2025

6,191‌

4,819‌

2.50%,

09/20/2040

627‌

572‌

Consolidated

Schedule

of

Investments

Diversified

Real

Asset

Fund

See

accompanying

notes.

105

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Sovereign

(continued)

Panama

Government

International

Bond

4.50%,

04/01/2056

$

465‌

$

532‌

Qatar

Government

International

Bond

3.75%,

04/16/2030

(f)

1,450‌

1,652‌

Romanian

Government

International

Bond

3.62%,

05/26/2030

EUR

595‌

813‌

Spain

Government

Bond

3.45%,

07/30/2066

(f)

665‌

1,237‌

$

22,389‌

Supranational

Bank

-

0.19%

European

Investment

Bank

0.00%,

09/09/2030

(d)

5,820‌

7,003‌

2.75%,

09/13/2030

790‌

1,183‌

$

8,186‌

TOTAL

BONDS

$

448,230‌

COMMODITY

INDEXED

STRUCTURED

NOTES

-

0.68%

Principal

Amount

(000's)

Value

(000's)

Banks

-

0.68%

Royal

Bank

of

C

anada;

Bloomberg

Commodity

Index

2

Month

Forward

Total

ReturnSM

Index

Linked

Note

0.08%,

05/26/2022

(f),(j)

$

21,900‌

$

29,653‌

TOTAL

COMMODITY

INDEXED

STRUCTURED

NOTES

$

29,653‌

SENIOR

FLOATING

RATE

INTERESTS

-

9.26%

Principal

Amount

(000's)

Value

(000's)

Advertising

-

0.14%

Checkout

Holding

Corp

2.00%,

PIK

9.50%,

08/15/2023

(n),(o)

$

283‌

$

155‌

3

Month

USD

LIBOR

+

1.00%

8.50%,

02/15/2023

(n)

164‌

156‌

3

Month

USD

LIBOR

+

7.50%

Clear

Channel

Outdoor

Holdings

Inc

3.63%,

08/07/2026

(n)

5,775‌

5,635‌

1

Month

USD

LIBOR

+

3.50%

Red

Ventures

LLC

2.58%,

11/08/2024

(n)

374‌

369‌

1

Month

USD

LIBOR

+

2.50%

$

6,315‌

Aerospace

&

Defense

-

0.07%

Sequa

Mezzanine

Holdings

LLC

5.00%,

PIK

6.75%,

04/28/2024

(n),(o)

535‌

525‌

1

Month

USD

LIBOR

+

10.75%

7.75%,

11/28/2023

(n)

1,516‌

1,536‌

1

Month

USD

LIBOR

+

6.75%

TransDigm

Inc

2.33%,

05/30/2025

(n)

472‌

464‌

1

Month

USD

LIBOR

+

2.25%

2.33%,

12/24/2025

(n)

509‌

500‌

1

Month

USD

LIBOR

+

2.25%

$

3,025‌

Airlines

-

0.17%

AAdvantage

Loyalty

IP

Ltd

5.50%,

03/10/2028

(n)

2,511‌

2,584‌

1

Month

USD

LIBOR

+

4.75%

Allegiant

Travel

Co

3.13%,

02/05/2024

(n)

338‌

335‌

1

Month

USD

LIBOR

+

3.00%

American

Airlines

Inc

2.09%,

12/14/2023

(n)

103‌

100‌

3

Month

USD

LIBOR

+

2.00%

SkyMiles

IP

Ltd

4.75%,

09/16/2027

(n)

1,100‌

1,166‌

3

Month

USD

LIBOR

+

3.75%

United

Airlines

Inc

4.50%,

04/14/2028

(n)

1,248‌

1,249‌

1

Month

USD

LIBOR

+

3.75%

SENIOR

FLOATING

RATE

INTERESTS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Airlines

(continued)

WestJet

Airlines

Ltd

4.00%,

12/11/2026

(n)

$

1,917‌

$

1,848‌

3

Month

USD

LIBOR

+

3.00%

$

7,282‌

Apparel

-

0.05%

Birkenstock

US

BidCo

Inc

0.00%,

04/27/2028

(n),(p)

1,534‌

1,532‌

1

Month

USD

LIBOR

+

3.75%

Champ

Acquisition

Corp

5.68%,

12/19/2025

(n)

439‌

440‌

3

Month

USD

LIBOR

+

5.50%

New

Trojan

Parent

Inc

3.75%,

01/06/2028

(n)

335‌

333‌

1

Month

USD

LIBOR

+

3.25%

$

2,305‌

Automobile

Parts

&

Equipment

-

0.03%

Clarios

Global

LP

3.34%,

04/30/2026

(n)

1,486‌

1,469‌

1

Month

USD

LIBOR

+

3.25%

Beverages

-

0.08%

Triton

Water

Holdings

Inc

4.00%,

03/17/2028

(n)

3,508‌

3,482‌

1

Month

USD

LIBOR

+

3.50%

Building

Materials

-

0.07%

Cornerstone

Building

Brands

Inc

3.75%,

03/26/2028

(n)

653‌

651‌

1

Month

USD

LIBOR

+

3.25%

Quikrete

Holdings

Inc

2.58%,

01/31/2027

(n)

784‌

774‌

1

Month

USD

LIBOR

+

2.50%

Standard

Industries

Inc

/NJ

0.00%,

08/06/2028

(n),(p)

1,812‌

1,806‌

$

3,231‌

Casino

Hotels

-

0.16%

Golden

Nugget

LLC

3.25%,

10/04/2023

(n)

7,127‌

7,076‌

1

Month

USD

LIBOR

+

2.50%

Chemicals

-

0.19%

Alpha

3

BV

3.00%,

03/05/2028

(n)

3,838‌

3,821‌

1

Month

USD

LIBOR

+

2.50%

ASP

Unifrax

Holdings

Inc

3.90%,

12/12/2025

(n)

1,314‌

1,277‌

3

Month

USD

LIBOR

+

3.75%

Ineos

Petro

3.25%,

01/21/2026

(n)

425‌

424‌

1

Month

USD

LIBOR

+

2.75%

INEOS

US

Finance

LLC

2.11%,

03/31/2024

(n)

232‌

229‌

3

Month

USD

LIBOR

+

2.00%

Innophos

Holdings

Inc

3.83%,

02/04/2027

(n)

707‌

704‌

1

Month

USD

LIBOR

+

3.75%

Sparta

US

HoldCo

LLC

4.25%,

08/02/2028

(n)

185‌

1

Month

USD

LIBOR

+

3.50%

Tronox

Finance

LLC

2.63%,

03/02/2028

(n)

22‌

3

Month

USD

LIBOR

+

3.00%

WR

Grace

Holdings

LLC

0.00%,

08/11/2028

(n),(p)

1,790‌

1,793‌

$

8,455‌

Commercial

Services

-

0.66%

All-Star

Bidco

AB

0.00%,

07/21/2028

(n),(p)

250‌

249‌

Consolidated

Schedule

of

Investments

Diversified

Real

Asset

Fund

See

accompanying

notes.

106

SENIOR

FLOATING

RATE

INTERESTS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Commercial

Services

(continued)

Belron

Finance

2.44%,

10/25/2026

(n)

$

739‌

$

733‌

1

Month

USD

LIBOR

+

2.50%

CCRR

Parent

Inc

5.00%,

03/05/2028

(n)

444‌

446‌

1

Month

USD

LIBOR

+

4.25%

Fly

Funding

1.88%,

08/09/2025

(n)

858‌

844‌

3

Month

USD

LIBOR

+

1.75%

Garda

World

Security

Corp

4.34%,

10/30/2026

(n)

356‌

355‌

1

Month

USD

LIBOR

+

4.25%

Hertz

Corp/The

4.00%,

06/14/2028

(n)

1,771‌

1,762‌

1

Month

USD

LIBOR

+

3.50%

4.00%,

06/14/2028

(n)

334‌

332‌

1

Month

USD

LIBOR

+

3.50%

HGIM

Corp

7.00%,

07/02/2023

(n)

1,307‌

967‌

3

Month

USD

LIBOR

+

6.00%

Indy

US

Bidco

LLC

4.09%,

02/05/2028

(n)

239‌

1

Month

USD

LIBOR

+

4.00%

PAREXEL

International

Corp

0.00%,

08/11/2028

(n),(p)

4,091‌

4,089‌

3

Month

USD

LIBOR

+

0.00%

Prime

Security

Services

Borrower

LLC

3.50%,

09/23/2026

(n)

5,471‌

5,459‌

1

Month

USD

LIBOR

+

2.75%

Syniverse

Holdings

Inc

6.00%,

02/09/2023

(n)

3,826‌

3,821‌

3

Month

USD

LIBOR

+

5.00%

10.00%,

02/09/2024

(n)

1,793‌

1,790‌

3

Month

USD

LIBOR

+

9.00%

Team

Health

Holdings

Inc

3.75%,

02/06/2024

(n)

1,665‌

1,617‌

3

Month

USD

LIBOR

+

2.75%

Trans

Union

LLC

1.83%,

11/13/2026

(n)

939‌

929‌

1

Month

USD

LIBOR

+

1.75%

Travelport

Finance

Luxembourg

Sarl

9.00%,

02/28/2025

(n)

1,891‌

1,927‌

1

Month

USD

LIBOR

+

7.00%

Verscend

Holding

Corp

4.09%,

08/27/2025

(n)

1,539‌

1,535‌

1

Month

USD

LIBOR

+

4.00%

Wand

NewCo

3

Inc

3.08%,

02/05/2026

(n)

1,477‌

1,458‌

1

Month

USD

LIBOR

+

3.00%

WEX

Inc

2.33%,

03/19/2028

(n)

464‌

459‌

1

Month

USD

LIBOR

+

2.25%

$

29,011‌

Computers

-

0.34%

Ahead

DB

Holdings

LLC

4.50%,

10/18/2027

(n)

772‌

773‌

1

Month

USD

LIBOR

+

3.75%

Dell

International

LLC

2.00%,

09/19/2025

(n)

1,445‌

1,444‌

1

Month

USD

LIBOR

+

1.75%

Everi

Payments

Inc

3.00%,

06/30/2028

(n)

2,850‌

2,838‌

1

Month

USD

LIBOR

+

2.50%

iQor

US

Inc

8.50%,

11/20/2024

(n)

159‌

162‌

1

Month

USD

LIBOR

+

7.50%

8.50%,

11/20/2025

(n)

424‌

417‌

1

Month

USD

LIBOR

+

7.50%

SENIOR

FLOATING

RATE

INTERESTS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Computers

(continued)

Magenta

Buyer

LLC

5.75%,

07/27/2028

(n)

$

1,750‌

$

1,745‌

1

Month

USD

LIBOR

+

5.00%

McAfee

LLC

3.83%,

09/30/2024

(n)

1,577‌

3

Month

USD

LIBOR

+

3.75%

NCR

Corp

2.63%,

08/07/2026

(n)

734‌

724‌

1

Month

USD

LIBOR

+

2.50%

NeuStar

Inc

4.50%,

08/08/2024

(n)

1,218‌

1,196‌

1

Month

USD

LIBOR

+

3.50%

5.50%,

08/08/2024

(n)

170‌

165‌

3

Month

USD

LIBOR

+

4.50%

Peraton

Corp

4.50%,

02/01/2028

(n)

499‌

1

Month

USD

LIBOR

+

3.75%

Perforce

Software

Inc

3.83%,

07/01/2026

(n)

411‌

407‌

1

Month

USD

LIBOR

+

3.75%

Tempo

Acquisition

LLC

0.00%,

08/19/2028

(n),(p)

1,500‌

1,499‌

3.75%,

11/02/2026

(n)

1,419‌

1

Month

USD

LIBOR

+

3.25%

$

14,865‌

Consumer

Products

-

0.03%

Illuminate

Merger

Sub

Corp

4.00%,

06/30/2028

(n)

410‌

409‌

1

Month

USD

LIBOR

+

3.50%

Kronos

Acquisition

Holdings

Inc

4.25%,

12/22/2026

(n)

736‌

717‌

1

Month

USD

LIBOR

+

3.75%

$

1,126‌

Cosmetics

&

Personal

Care

-

0.11%

Conair

Holdings

LLC

4.25%,

05/12/2028

(n)

1,250‌

1,248‌

1

Month

USD

LIBOR

+

3.75%

Journey

Personal

Care

Corp

5.00%,

02/18/2028

(n)

1,150‌

1,152‌

1

Month

USD

LIBOR

+

4.25%

Revlon

Consumer

Products

Corp

4.25%,

07/21/2023

(n)

3,726‌

2,273‌

1

Month

USD

LIBOR

+

3.50%

$

4,673‌

Distribution

&

Wholesale

-

0.04%

Core

&

Main

LP

2.59%,

07/27/2028

(n)

1,703‌

1,684‌

1

Month

USD

LIBOR

+

2.50%

KAR

Auction

Services

Inc

2.37%,

09/11/2026

(n)

275‌

271‌

1

Month

USD

LIBOR

+

2.25%

$

1,955‌

Diversified

Financial

Services

-

0.04%

Avolon

TLB

Borrower

1

US

LLC

2.25%,

02/12/2027

(n)

403‌

397‌

1

Month

USD

LIBOR

+

1.50%

Ditech

Holding

Corp

0.00%,

06/30/2022

(d),(n)

1,011‌

200‌

3

Month

USD

LIBOR

+

6.00%

FleetCor

Technologies

Operating

Co

LLC

1.83%,

04/21/2028

(n)

1,250‌

1,243‌

1

Month

USD

LIBOR

+

1.75%

$

1,840‌

Consolidated

Schedule

of

Investments

Diversified

Real

Asset

Fund

See

accompanying

notes.

107

SENIOR

FLOATING

RATE

INTERESTS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Electric

-

0.02%

Calpine

Corp

2.08%,

08/12/2026

(n)

$

425‌

$

417‌

1

Month

USD

LIBOR

+

2.00%

2.59%,

12/02/2027

(n)

273‌

271‌

1

Month

USD

LIBOR

+

2.50%

Exgen

Renewables

IV

LLC

3.50%,

12/11/2027

(n)

318‌

317‌

1

Month

USD

LIBOR

+

2.50%

$

1,005‌

Electronics

-

0.04%

Ingram

Micro

Inc

4.00%,

06/30/2028

(n)

1,430‌

1,432‌

1

Month

USD

LIBOR

+

3.50%

TTM

Technologies

Inc

2.60%,

09/13/2024

(n)

408‌

407‌

3

Month

USD

LIBOR

+

2.50%

$

1,839‌

Engineering

&

Construction

-

0.12%

AECOM

1.83%,

04/13/2028

(n)

1,250‌

1,248‌

1

Month

USD

LIBOR

+

1.75%

Atlantic

Aviation

FBO

Inc

3.84%,

12/06/2025

(n)

483‌

482‌

3

Month

USD

LIBOR

+

3.75%

Brown

Group

Holding

LLC

3.25%,

06/07/2028

(n)

1,890‌

1,879‌

1

Month

USD

LIBOR

+

2.75%

Centuri

Group

Inc

0.00%,

08/18/2028

(n),(p)

800‌

797‌

KKR

Apple

Bidco

LLC

0.00%,

07/14/2028

(n),(p)

500‌

498‌

Osmose

Utilities

Services

Inc

3.75%,

06/16/2028

(n)

400‌

397‌

1

Month

USD

LIBOR

+

3.25%

$

5,301‌

Entertainment

-

0.67%

AMC

Entertainment

Holdings

Inc

3.09%,

03/20/2026

(n)

390‌

347‌

3

Month

USD

LIBOR

+

3.00%

Bally's

Corp

0.00%,

08/06/2028

(n),(p)

4,250‌

4,240‌

1

Month

USD

LIBOR

+

3.25%

Churchill

Downs

Inc

2.09%,

03/10/2028

(n)

604‌

598‌

1

Month

USD

LIBOR

+

2.00%

Crown

Finance

US

Inc

3.50%,

02/07/2025

(n)

255‌

198‌

1

Month

USD

LIBOR

+

2.50%

3.75%,

09/30/2026

(n)

153‌

117‌

1

Month

USD

LIBOR

+

2.75%

7.00%,

05/23/2024

(n)

124‌

152‌

9.25%,

05/23/2024

(n)

51‌

54‌

1

Month

USD

LIBOR

+

8.25%

Delta

2

Lux

Sarl

3.50%,

02/01/2024

(n)

4,862‌

4,841‌

3

Month

USD

LIBOR

+

2.50%

Lions

Gate

Capital

Holdings

LLC

2.34%,

03/24/2025

(n)

467‌

462‌

3

Month

USD

LIBOR

+

2.25%

Merlin

Entertainment

3.40%,

10/16/2026

(n)

271‌

259‌

3

Month

USD

LIBOR

+

3.25%

3.40%,

11/12/2026

(n)

61‌

58‌

3

Month

USD

LIBOR

+

3.25%

SENIOR

FLOATING

RATE

INTERESTS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Entertainment

(continued)

Metro-Goldwyn-Mayer

Inc

2.59%,

07/03/2025

(n)

$

1,541‌

$

1,529‌

3

Month

USD

LIBOR

+

2.50%

5.50%,

07/03/2026

(n)

500‌

499‌

3

Month

USD

LIBOR

+

4.50%

Nascar

Holdings

LLC

2.83%,

10/19/2026

(n)

2,044‌

2,033‌

3

Month

USD

LIBOR

+

2.75%

PCI

Gaming

Authority

2.58%,

05/29/2026

(n)

737‌

731‌

1

Month

USD

LIBOR

+

2.50%

Penn

National

Gaming

Inc

3.00%,

10/15/2025

(n)

642‌

639‌

3

Month

USD

LIBOR

+

2.25%

Scientific

Games

International

Inc

2.83%,

08/14/2024

(n)

5,114‌

5,066‌

1

Month

USD

LIBOR

+

2.75%

SeaWorld

Parks

&

Entertainment

Inc

0.00%,

08/13/2028

(n),(p)

1,000‌

991‌

Stars

Group

Holdings

BV

2.37%,

07/21/2026

(n)

5,440‌

5,408‌

1

Month

USD

LIBOR

+

2.25%

William

Morris

Endeavor

Entertainment

LLC

2.84%,

05/16/2025

(n)

1,285‌

1,249‌

3

Month

USD

LIBOR

+

2.75%

$

29,471‌

Environmental

Control

-

0.08%

GFL

Environmental

Inc

3.50%,

05/30/2025

(n)

2,193‌

2,194‌

1

Month

USD

LIBOR

+

3.00%

Madison

IAQ

LLC

3.75%,

06/16/2028

(n)

1,250‌

1,241‌

1

Month

USD

LIBOR

+

3.25%

$

3,435‌

Food

-

0.23%

8th

Avenue

Food

&

Provisions

Inc

3.84%,

09/19/2025

(n)

629‌

612‌

3

Month

USD

LIBOR

+

3.50%

5.50%,

10/01/2025

(n)

300‌

297‌

3

Month

USD

LIBOR

+

0.00%

Atkins

Nutritionals

Holdings

Inc

4.75%,

07/07/2024

(n)

594‌

595‌

1

Month

USD

LIBOR

+

3.75%

Bellring

Brands

LLC

4.75%,

10/21/2024

(n)

1,426‌

1,429‌

1

Month

USD

LIBOR

+

4.00%

CHG

PPC

Parent

LLC

2.84%,

03/30/2025

(n)

239‌

237‌

3

Month

USD

LIBOR

+

2.75%

Froneri

US

Inc

2.34%,

01/29/2027

(n)

673‌

663‌

1

Month

USD

LIBOR

+

2.25%

H-Food

Holdings

LLC

3.78%,

05/23/2025

(n)

1,247‌

1,234‌

3

Month

USD

LIBOR

+

3.69%

Total

Produce

USA

Holdings

Inc

2.08%,

06/09/2028

(n)

765‌

766‌

1

Month

USD

LIBOR

+

2.00%

US

Foods

Inc

1.83%,

06/27/2023

(n)

3,931‌

3,884‌

1

Month

USD

LIBOR

+

1.75%

Utz

Quality

Foods

LLC

3.08%,

01/20/2028

(n)

351‌

349‌

1

Month

USD

LIBOR

+

3.00%

$

10,066‌

Consolidated

Schedule

of

Investments

Diversified

Real

Asset

Fund

See

accompanying

notes.

108

SENIOR

FLOATING

RATE

INTERESTS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Forest

Products

&

Paper

-

0.03%

Asplundh

Tree

Expert

LLC

1.83%,

09/07/2027

(n)

$

1,376‌

$

1,366‌

1

Month

USD

LIBOR

+

1.75%

Hand

&

Machine

Tools

-

0.03%

Alliance

Laundry

Systems

LLC

4.25%,

09/30/2027

(n)

738‌

1

Month

USD

LIBOR

+

3.50%

Apex

Tool

Group

LLC

6.50%,

08/01/2024

(n)

604‌

605‌

3

Month

USD

LIBOR

+

5.50%

$

1,343‌

Healthcare

-

Products

-

0.13%

Carestream

Health

Inc

5.50%,

PIK

8.00%,

08/08/2023

(n),(o)

640‌

623‌

1

Month

USD

LIBOR

+

4.50%

7.75%,

05/08/2023

(n)

1,243‌

1,247‌

1

Month

USD

LIBOR

+

6.75%

CPI

Holdco

LLC

3.83%,

11/04/2026

(n)

362‌

1

Month

USD

LIBOR

+

4.00%

Insulet

Corp

3.75%,

04/28/2028

(n)

1,250‌

1,249‌

1

Month

USD

LIBOR

+

3.25%

LifeScan

Global

Corp

6.15%,

10/01/2024

(n)

56‌

55‌

3

Month

USD

LIBOR

+

6.00%

Viant

Medical

Holdings

Inc

3.83%,

07/02/2025

(n)

1,177‌

1,134‌

3

Month

USD

LIBOR

+

3.75%

Vyaire

Medical

Inc

5.75%,

04/11/2025

(n)

1,414‌

1,207‌

3

Month

USD

LIBOR

+

4.75%

$

5,877‌

Healthcare

-

Services

-

0.70%

ADMI

Corp

3.63%,

12/23/2027

(n)

255‌

252‌

1

Month

USD

LIBOR

+

3.25%

AHP

Health

Partners

Inc

0.00%,

08/04/2028

(n),(p)

1,500‌

1,502‌

BW

NHHC

Holdco

Inc

5.12%,

05/15/2025

(n)

1,109‌

1,005‌

3

Month

USD

LIBOR

+

5.00%

Catalent

Pharma

Solutions

Inc

2.50%,

02/22/2028

(n)

483‌

1

Month

USD

LIBOR

+

2.00%

Envision

Healthcare

Corp

3.83%,

10/10/2025

(n)

1,387‌

1,216‌

3

Month

USD

LIBOR

+

3.75%

Eyecare

Partners

LLC

3.86%,

02/05/2027

(n)

93‌

92‌

1

Month

USD

LIBOR

+

3.75%

Gentiva

Health

Services

Inc

2.88%,

07/02/2025

(n)

1,159‌

1,156‌

1

Month

USD

LIBOR

+

2.75%

Global

Medical

Response

Inc

5.75%,

09/24/2025

(n)

1,741‌

1,747‌

1

Month

USD

LIBOR

+

4.75%

ICON

Luxembourg

Sarl

0.00%,

06/16/2028

(n),(p)

2,001‌

1,999‌

1

Month

USD

LIBOR

+

2.50%

Indigo

Merger

Sub

Inc

0.00%,

06/16/2028

(n),(p)

499‌

498‌

1

Month

USD

LIBOR

+

2.50%

LifePoint

Health

Inc

3.83%,

11/14/2025

(n)

8,912‌

8,844‌

1

Month

USD

LIBOR

+

3.75%

SENIOR

FLOATING

RATE

INTERESTS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Healthcare

-

Services

(continued)

Lonza

Group

AG

4.75%,

07/03/2028

(n)

$

418‌

$

418‌

3

Month

USD

LIBOR

+

4.00%

Onex

TSG

Intermediate

Corp

5.50%,

02/23/2028

(n)

315‌

317‌

1

Month

USD

LIBOR

+

4.75%

Phoenix

Guarantor

Inc

3.34%,

03/05/2026

(n)

1,240‌

1,227‌

1

Month

USD

LIBOR

+

3.25%

PPD

Inc

2.50%,

01/13/2028

(n)

3,717‌

3,705‌

1

Month

USD

LIBOR

+

2.25%

Quorum

Health

Corp

8.00%,

04/29/2025

(n)

341‌

340‌

3

Month

USD

LIBOR

+

8.25%

Select

Medical

Corp

2.34%,

03/06/2025

(n)

1,748‌

1,735‌

3

Month

USD

LIBOR

+

2.50%

Surgery

Center

Holdings

Inc

4.50%,

09/03/2026

(n)

3,338‌

3,339‌

1

Month

USD

LIBOR

+

3.75%

US

Radiology

Specialists

Inc

6.25%,

12/10/2027

(n)

597‌

599‌

1

Month

USD

LIBOR

+

5.50%

$

30,474‌

Home

Furnishings

-

0.10%

Herman

Miller

Inc

2.06%,

06/29/2028

(n)

1,500‌

1,494‌

1

Month

USD

LIBOR

+

2.00%

Mattress

Firm

Inc

6.25%,

11/24/2027

(n)

698‌

709‌

1

Month

USD

LIBOR

+

5.25%

Osmosis

Debt

Merger

Sub

Inc

4.50%,

07/31/2028

(n)

667‌

666‌

1

Month

USD

LIBOR

+

4.00%

Weber-Stephen

Products

LLC

4.00%,

10/20/2027

(n)

1,428‌

1

Month

USD

LIBOR

+

3.25%

$

4,297‌

Insurance

-

0.13%

Acrisure

LLC

3.61%,

02/12/2027

(n)

1,035‌

1,019‌

1

Month

USD

LIBOR

+

3.50%

Alliant

Holdings

Intermediate

LLC

3.33%,

05/09/2025

(n)

1,156‌

1,143‌

1

Month

USD

LIBOR

+

3.25%

4.25%,

10/08/2027

(n)

748‌

1

Month

USD

LIBOR

+

3.75%

Asurion

LLC

5.34%,

01/15/2029

(n)

1,750‌

1,740‌

1

Month

USD

LIBOR

+

5.25%

BroadStreet

Partners

Inc

3.08%,

01/27/2027

(n)

612‌

602‌

1

Month

USD

LIBOR

+

3.25%

HUB

International

Ltd

2.88%,

04/25/2025

(n)

266‌

263‌

1

Month

USD

LIBOR

+

2.75%

4.00%,

04/25/2025

(n)

318‌

1

Month

USD

LIBOR

+

3.25%

$

5,833‌

Internet

-

0.08%

Arches

Buyer

Inc

3.75%,

12/06/2027

(n)

348‌

345‌

1

Month

USD

LIBOR

+

3.25%

CNT

Holdings

I

Corp

4.50%,

10/16/2027

(n)

1,746‌

1,744‌

1

Month

USD

LIBOR

+

3.75%

Consolidated

Schedule

of

Investments

Diversified

Real

Asset

Fund

See

accompanying

notes.

109

SENIOR

FLOATING

RATE

INTERESTS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Internet

(continued)

Proofpoint

Inc

0.00%,

06/09/2028

(n),(p)

$

923‌

$

917‌

Uber

Technologies

Inc

3.58%,

04/04/2025

(n)

329‌

328‌

1

Month

USD

LIBOR

+

3.50%

$

3,334‌

Leisure

Products

&

Services

-

0.22%

Alterra

Mountain

Co

2.84%,

07/31/2024

(n)

595‌

586‌

1

Month

USD

LIBOR

+

2.75%

Callaway

Golf

Co

4.59%,

01/02/2026

(n)

431‌

432‌

3

Month

USD

LIBOR

+

4.50%

Carnival

Corp

3.75%,

06/30/2025

(n)

559‌

555‌

1

Month

USD

LIBOR

+

3.00%

ClubCorp

Holdings

Inc

2.90%,

08/16/2024

(n)

2,958‌

2,771‌

3

Month

USD

LIBOR

+

2.75%

Equinox

Holdings

Inc

4.00%,

03/08/2024

(n)

1,481‌

1,354‌

3

Month

USD

LIBOR

+

3.00%

Hayward

Industries

Inc

4.00%,

05/29/2028

(n)

1,500‌

1,492‌

1

Month

USD

LIBOR

+

2.50%

Life

Time

Inc

5.75%,

12/10/2024

(n)

1,245‌

1,238‌

1

Month

USD

LIBOR

+

4.75%

SRAM

LLC

3.25%,

05/12/2028

(n)

1,215‌

1,208‌

1

Month

USD

LIBOR

+

2.75%

$

9,636‌

Lodging

-

0.17%

Boyd

Gaming

Corp

2.33%,

09/15/2023

(n)

1,915‌

1,910‌

3

Month

USD

LIBOR

+

2.25%

Caesars

Resort

Collection

LLC

2.83%,

12/22/2024

(n)

2,283‌

2,263‌

3

Month

USD

LIBOR

+

2.75%

4.59%,

07/20/2025

(n)

993‌

994‌

1

Month

USD

LIBOR

+

4.50%

CityCenter

Holdings

LLC

3.00%,

04/18/2024

(n)

1,282‌

1,279‌

3

Month

USD

LIBOR

+

2.25%

Hilton

Grand

Vacations

Borrower

LLC

3.50%,

08/02/2028

(n)

500‌

499‌

1

Month

USD

LIBOR

+

3.00%

Hilton

Worldwide

Finance

LLC

1.83%,

06/18/2026

(n)

399‌

394‌

3

Month

USD

LIBOR

+

1.75%

$

7,339‌

Machinery

-

Construction

&

Mining

-

0.09%

TNT

Crane

&

Rigging

Inc

7.50%,

10/16/2024

(n)

2,985‌

3,105‌

1

Month

USD

LIBOR

+

6.50%

Vertiv

Group

Corp

2.85%,

03/02/2027

(n)

988‌

981‌

1

Month

USD

LIBOR

+

2.75%

$

4,086‌

Machinery

-

Diversified

-

0.04%

Altra

Industrial

Motion

Corp

2.09%,

10/01/2025

(n)

338‌

334‌

3

Month

USD

LIBOR

+

2.00%

Gardner

Denver

Inc

2.83%,

03/01/2027

(n)

262‌

1

Month

USD

LIBOR

+

2.75%

SENIOR

FLOATING

RATE

INTERESTS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Machinery

-

Diversified

(continued)

TK

Elevator

US

Newco

Inc

4.00%,

07/30/2027

(n)

$

976‌

$

975‌

1

Month

USD

LIBOR

+

3.50%

$

1,571‌

Media

-

0.65%

Altice

Financing

SA

2.88%,

07/15/2025

(n)

796‌

780‌

3

Month

USD

LIBOR

+

2.75%

2.90%,

01/06/2026

(n)

482‌

472‌

3

Month

USD

LIBOR

+

2.75%

Cengage

Learning

Inc

5.75%,

06/29/2026

(n)

1,600‌

1,604‌

1

Month

USD

LIBOR

+

4.75%

CSC

Holdings

LLC

2.35%,

07/17/2025

(n)

4,214‌

4,149‌

3

Month

USD

LIBOR

+

2.25%

2.59%,

04/27/2027

(n)

2,310‌

2,279‌

1

Month

USD

LIBOR

+

2.50%

Diamond

Sports

Group

LLC

3.34%,

08/24/2026

(n)

2,835‌

1,764‌

1

Month

USD

LIBOR

+

3.25%

Directv

Financing

LLC

5.75%,

07/22/2027

(n)

3,862‌

3,860‌

1

Month

USD

LIBOR

+

5.00%

GCI

LLC

0.00%,

10/15/2025

(n),(p)

232‌

1

Month

USD

LIBOR

+

2.75%

Gray

Television

Inc

2.35%,

02/07/2024

(n)

323‌

321‌

3

Month

USD

LIBOR

+

2.25%

2.60%,

01/02/2026

(n)

387‌

384‌

3

Month

USD

LIBOR

+

2.50%

Houghton

Mifflin

Harcourt

Publishers

Inc

7.25%,

11/19/2024

(n)

13‌

1

Month

USD

LIBOR

+

6.25%

iHeartCommunications

Inc

3.08%,

05/01/2026

(n)

3,569‌

3,536‌

1

Month

USD

LIBOR

+

3.00%

LCPR

Loan

Financing

LLC

3.85%,

10/15/2028

(n)

395‌

1

Month

USD

LIBOR

+

3.75%

Mav

Acquisition

Corp

5.25%,

07/21/2028

(n)

800‌

794‌

1

Month

USD

LIBOR

+

4.75%

Meredith

Corp

5.25%,

01/31/2025

(n)

431‌

439‌

1

Month

USD

LIBOR

+

4.25%

Nexstar

Media

Inc

2.33%,

01/17/2024

(n)

1,123‌

1,118‌

3

Month

USD

LIBOR

+

2.25%

2.60%,

09/18/2026

(n)

1,216‌

1,209‌

1

Month

USD

LIBOR

+

2.75%

Nielsen

Finance

LLC

2.10%,

10/04/2023

(n)

977‌

976‌

3

Month

USD

LIBOR

+

2.00%

Radiate

Holdco

LLC

4.25%,

09/11/2026

(n)

670‌

668‌

1

Month

USD

LIBOR

+

3.50%

Sinclair

Television

Group

Inc

2.34%,

01/03/2024

(n)

251‌

246‌

3

Month

USD

LIBOR

+

2.25%

Univision

Communications

Inc

3.75%,

03/15/2024

(n)

303‌

302‌

3

Month

USD

LIBOR

+

2.75%

Virgin

Media

Bristol

LLC

2.60%,

01/31/2028

(n)

811‌

802‌

1

Month

USD

LIBOR

+

2.50%

Consolidated

Schedule

of

Investments

Diversified

Real

Asset

Fund

See

accompanying

notes.

110

SENIOR

FLOATING

RATE

INTERESTS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Media

(continued)

WideOpenWest

Finance

LLC

4.25%,

08/18/2023

(n)

$

386‌

$

385‌

3

Month

USD

LIBOR

+

3.25%

Ziggo

Financing

Partnership

2.60%,

04/17/2028

(n)

1,686‌

1,668‌

1

Month

USD

LIBOR

+

2.50%

$

28,396‌

Miscellaneous

Manufacturers

-

0.07%

Gates

Global

LLC

3.25%,

03/31/2027

(n)

3,000‌

2,985‌

1

Month

USD

LIBOR

+

2.75%

Office

&

Business

Equipment

-

0.01%

Pitney

Bowes

Inc

4.09%,

03/12/2028

(n)

331‌

1

Month

USD

LIBOR

+

4.00%

Oil

&

Gas

-

0.13%

CITGO

Petroleum

Corp

7.25%,

03/28/2024

(n)

461‌

1

Month

USD

LIBOR

+

6.25%

Delek

US

Holdings

Inc

2.33%,

03/30/2025

(n)

439‌

427‌

3

Month

USD

LIBOR

+

2.25%

6.50%,

03/30/2025

(n)

1,153‌

1

Month

USD

LIBOR

+

5.50%

Gulf

Finance

LLC

6.25%,

08/25/2023

(n)

1,476‌

1,242‌

3

Month

USD

LIBOR

+

5.25%

Quarternorth

Energy

Holding

Inc

0.00%,

08/27/2026

(n),(p)

2,494‌

2,456‌

3

Month

USD

LIBOR

+

8.00%

$

5,739‌

Oil

&

Gas

Services

-

0.03%

PGS

ASA

7.65%,

03/19/2024

(n)

1,572‌

1,431‌

1

Month

USD

LIBOR

+

7.00%

Packaging

&

Containers

-

0.07%

Berry

Global

Inc

1.86%,

07/01/2026

(n)

1,083‌

1,073‌

1

Month

USD

LIBOR

+

1.75%

Kloeckner

Pentaplast

of

America

Inc

5.25%,

02/04/2026

(n)

462‌

461‌

1

Month

USD

LIBOR

+

4.75%

Pactiv

Evergreen

Group

Holdings

Inc

2.83%,

02/05/2023

(n)

742‌

737‌

1

Month

USD

LIBOR

+

2.75%

Plaze

Inc

4.50%,

08/03/2026

(n)

618‌

613‌

1

Month

USD

LIBOR

+

3.75%

TricorBraun

3.75%,

03/03/2028

(n)

371‌

368‌

3

Month

USD

LIBOR

+

3.25%

3.75%,

03/01/2028

(n)

13‌

12‌

3

Month

USD

LIBOR

+

3.25%

$

3,264‌

Pharmaceuticals

-

0.70%

Amneal

Pharmaceuticals

LLC

3.63%,

05/04/2025

(n)

677‌

666‌

3

Month

USD

LIBOR

+

3.50%

Bausch

Health

Americas

Inc

2.84%,

11/14/2025

(n)

1,174‌

1,167‌

3

Month

USD

LIBOR

+

2.75%

3.09%,

05/19/2025

(n)

5,432‌

5,411‌

3

Month

USD

LIBOR

+

3.00%

Change

Healthcare

Holdings

LLC

3.50%,

03/01/2024

(n)

3,081‌

3,073‌

1

Month

USD

LIBOR

+

2.50%

SENIOR

FLOATING

RATE

INTERESTS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Pharmaceuticals

(continued)

Endo

Luxembourg

Finance

Co

I

Sarl

5.75%,

03/27/2028

(n)

$

2,000‌

$

1,939‌

1

Month

USD

LIBOR

+

5.00%

Gainwell

Acquisition

Corp

4.75%,

10/01/2027

(n)

2,107‌

2,113‌

1

Month

USD

LIBOR

+

4.00%

Grifols

Worldwide

Operations

USA

Inc

2.08%,

11/15/2027

(n)

1,167‌

1,150‌

1

Month

USD

LIBOR

+

2.00%

Jazz

Financing

Lux

Sarl

4.00%,

04/21/2028

(n)

4,000‌

1

Month

USD

LIBOR

+

3.50%

Mallinckrodt

International

Finance

SA

6.00%,

09/24/2024

(n)

5,268‌

5,109‌

3

Month

USD

LIBOR

+

2.75%

6.25%,

02/24/2025

(n)

1,243‌

1,206‌

3

Month

USD

LIBOR

+

3.00%

Organon

&

Co

3.50%,

06/02/2028

(n)

4,000‌

4,012‌

1

Month

USD

LIBOR

+

3.00%

Prestige

Brands

Inc

2.50%,

06/09/2028

(n)

1,000‌

995‌

1

Month

USD

LIBOR

+

2.00%

$

30,841‌

Pipelines

-

0.06%

BCP

Renaissance

Parent

LLC

4.50%,

10/31/2024

(n)

458‌

452‌

3

Month

USD

LIBOR

+

3.50%

Buckeye

Partners

LP

2.35%,

11/01/2026

(n)

836‌

827‌

1

Month

USD

LIBOR

+

2.25%

Traverse

Midstream

Partners

LLC

6.50%,

09/21/2024

(n)

1,116‌

1

Month

USD

LIBOR

+

5.50%

$

2,395‌

Real

Estate

-

0.05%

Brookfield

Retail

Holdings

VII

Sub

3

LLC

3.08%,

08/27/2023

(n)

1,927‌

1,921‌

3

Month

USD

LIBOR

+

3.00%

Realogy

Group

LLC

1.84%,

02/08/2023

(n)

291‌

289‌

1

Month

USD

LIBOR

+

2.25%

3.00%,

02/08/2025

(n)

104‌

103‌

3

Month

USD

LIBOR

+

2.25%

$

2,313‌

REITs

-

0.03%

Blackstone

Mortgage

Trust

Inc

2.33%,

04/23/2026

(n)

1,224‌

1,209‌

1

Month

USD

LIBOR

+

2.25%

Retail

-

0.30%

1011778

BC

ULC

1.83%,

11/14/2026

(n)

1,588‌

1,559‌

1

Month

USD

LIBOR

+

1.75%

Academy

Ltd

4.50%,

11/05/2027

(n)

748‌

1

Month

USD

LIBOR

+

3.75%

Belk

Inc

5.00%,

07/31/2025

(n)

1,036‌

782‌

8.50%,

07/31/2025

(n)

232‌

3

Month

USD

LIBOR

+

7.50%

BJ's

Wholesale

Club

Inc

2.10%,

02/03/2024

(n)

71‌

1

Month

USD

LIBOR

+

2.00%

EG

America

LLC

4.15%,

02/07/2025

(n)

30‌

3

Month

USD

LIBOR

+

4.00%

Consolidated

Schedule

of

Investments

Diversified

Real

Asset

Fund

See

accompanying

notes.

111

SENIOR

FLOATING

RATE

INTERESTS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Retail

(continued)

IRB

Holding

Corp

4.25%,

11/19/2027

(n)

$

1,247‌

$

1,246‌

1

Month

USD

LIBOR

+

3.25%

Jo-Ann

Stores

LLC

5.50%,

06/30/2028

(n)

780‌

776‌

1

Month

USD

LIBOR

+

4.75%

LS

Group

OpCo

Acquistion

LLC

4.00%,

10/26/2027

(n)

746‌

745‌

1

Month

USD

LIBOR

+

3.25%

PetSmart

Inc

4.50%,

01/28/2028

(n)

5,910‌

5,915‌

1

Month

USD

LIBOR

+

3.75%

Serta

Simmons

Bedding

LLC

8.50%,

08/10/2023

(n)

61‌

1

Month

USD

LIBOR

+

7.50%

8.50%,

08/10/2023

(n)

518‌

492‌

1

Month

USD

LIBOR

+

7.50%

Staples

Inc

5.13%,

04/09/2026

(n)

465‌

439‌

3

Month

USD

LIBOR

+

5.00%

$

13,096‌

Semiconductors

-

0.03%

Bright

Bidco

BV

4.50%,

06/30/2024

(n)

100‌

80‌

3

Month

USD

LIBOR

+

3.50%

MACOM

Technology

Solutions

Holdings

Inc

2.34%,

05/17/2024

(n)

68‌

3

Month

USD

LIBOR

+

2.25%

Ultra

Clean

Holdings

Inc

3.83%,

08/27/2025

(n)

1,103‌

1

Month

USD

LIBOR

+

3.75%

$

1,251‌

Software

-

1.16%

Apttus

Corp

5.00%,

04/28/2028

(n)

1,902‌

1,906‌

1

Month

USD

LIBOR

+

4.25%

athenahealth

Inc

4.38%,

02/11/2026

(n)

441‌

442‌

1

Month

USD

LIBOR

+

4.25%

Blackboard

Inc

7.00%,

06/28/2024

(n)

1,707‌

1,720‌

1

Month

USD

LIBOR

+

6.00%

Boxer

Parent

Co

Inc

3.83%,

10/02/2025

(n)

284‌

282‌

1

Month

USD

LIBOR

+

3.75%

BY

Crown

Parent

LLC

4.00%,

01/31/2026

(n)

344‌

343‌

1

Month

USD

LIBOR

+

3.00%

Camelot

Finance

SA

3.08%,

10/30/2026

(n)

698‌

694‌

1

Month

USD

LIBOR

+

3.00%

Ceridian

HCM

Holding

Inc

2.58%,

04/04/2025

(n)

1,012‌

993‌

1

Month

USD

LIBOR

+

2.50%

DTI

Holdco

Inc

5.75%,

09/30/2023

(n)

345‌

335‌

3

Month

USD

LIBOR

+

4.75%

Dun

&

Bradstreet

Corp/The

3.34%,

02/06/2026

(n)

1,535‌

1,523‌

1

Month

USD

LIBOR

+

3.25%

Dynatrace

LLC

2.34%,

08/08/2025

(n)

154‌

153‌

1

Month

USD

LIBOR

+

2.25%

Epicor

Software

Corp

4.00%,

07/30/2027

(n)

3,394‌

3,389‌

1

Month

USD

LIBOR

+

3.25%

SENIOR

FLOATING

RATE

INTERESTS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Software

(continued)

Finastra

USA

Inc

4.50%,

06/13/2024

(n)

$

3,565‌

$

3,520‌

3

Month

USD

LIBOR

+

3.50%

Genesys

Cloud

Services

Holdings

II

LLC

4.75%,

10/08/2027

(n)

3,248‌

3,253‌

1

Month

USD

LIBOR

+

4.00%

Greenway

Health

LLC

4.75%,

02/16/2024

(n)

313‌

304‌

3

Month

USD

LIBOR

+

4.25%

IGT

Holding

IV

AB

4.25%,

03/23/2028

(n)

1,507‌

1,506‌

1

Month

USD

LIBOR

+

3.75%

Informatica

LLC

3.33%,

02/14/2027

(n)

4,106‌

4,078‌

1

Month

USD

LIBOR

+

3.25%

MA

FinanceCo

LLC

2.83%,

06/21/2024

(n)

792‌

780‌

3

Month

USD

LIBOR

+

2.50%

5.25%,

05/29/2025

(n)

254‌

255‌

1

Month

USD

LIBOR

+

4.25%

Playtika

Holding

Corp

2.84%,

03/05/2028

(n)

384‌

382‌

1

Month

USD

LIBOR

+

2.75%

Precisely

5.00%,

04/23/2028

(n)

1,500‌

1,495‌

3

Month

USD

LIBOR

+

4.25%

Project

Ruby

Ultimate

Parent

Corp

4.00%,

03/03/2028

(n)

249‌

248‌

1

Month

USD

LIBOR

+

3.25%

Rackspace

Technology

Global

Inc

3.50%,

02/03/2028

(n)

5,762‌

5,698‌

1

Month

USD

LIBOR

+

2.75%

RealPage

Inc

3.75%,

04/24/2028

(n)

675‌

671‌

1

Month

USD

LIBOR

+

3.25%

Riverbed

Technology

Inc

7.00%,

12/31/2025

(n)

1,750‌

1,554‌

1

Month

USD

LIBOR

+

6.00%

Seattle

SpinCo

Inc

2.83%,

06/21/2024

(n)

5,347‌

5,270‌

3

Month

USD

LIBOR

+

2.50%

Solera

LLC

4.50%,

06/02/2028

(n)

1,750‌

1,748‌

1

Month

USD

LIBOR

+

4.00%

Sophia

LP

4.50%,

10/07/2027

(n)

1,293‌

1,296‌

1

Month

USD

LIBOR

+

3.75%

SS&C

Technologies

Inc

1.83%,

04/16/2025

(n)

252‌

248‌

1

Month

USD

LIBOR

+

1.75%

1.83%,

04/16/2025

(n)

194‌

191‌

1

Month

USD

LIBOR

+

1.75%

1.83%,

04/16/2025

(n)

774‌

763‌

1

Month

USD

LIBOR

+

1.75%

TIBCO

Software

Inc

3.84%,

06/30/2026

(n)

317‌

315‌

1

Month

USD

LIBOR

+

3.75%

UKG

Inc

3.83%,

05/03/2026

(n)

1,218‌

3

Month

USD

LIBOR

+

3.75%

4.00%,

05/04/2026

(n)

2,940‌

1

Month

USD

LIBOR

+

3.25%

Zelis

Payments

Buyer

Inc

3.60%,

09/30/2026

(n)

520‌

517‌

1

Month

USD

LIBOR

+

3.50%

Consolidated

Schedule

of

Investments

Diversified

Real

Asset

Fund

See

accompanying

notes.

112

SENIOR

FLOATING

RATE

INTERESTS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Software

(continued)

ZoomInfo

LLC

3.08%,

02/02/2026

(n)

$

792‌

$

792‌

1

Month

USD

LIBOR

+

3.00%

$

50,822‌

Telecommunications

-

0.89%

Altice

France

SA/France

3.81%,

01/31/2026

(n)

309‌

306‌

3

Month

USD

LIBOR

+

3.69%

4.12%,

08/14/2026

(n)

3,407‌

3,394‌

3

Month

USD

LIBOR

+

4.00%

Avaya

Inc

0.00%,

12/15/2027

(n),(p)

973‌

4.35%,

12/15/2027

(n)

2,824‌

2,826‌

1

Month

USD

LIBOR

+

4.25%

CommScope

Inc

3.33%,

04/06/2026

(n)

1,043‌

1,030‌

3

Month

USD

LIBOR

+

3.25%

Delta

Topco

Inc

4.50%,

01/12/2027

(n)

1,746‌

1,747‌

1

Month

USD

LIBOR

+

3.75%

Frontier

Communications

Holdings

LLC

4.50%,

05/01/2028

(n)

3,547‌

3,540‌

1

Month

USD

LIBOR

+

3.75%

Gogo

Intermediate

Holdings

LLC

4.50%,

04/21/2028

(n)

1,250‌

1,248‌

1

Month

USD

LIBOR

+

3.75%

GTT

Communications

BV

6.00%,

12/28/2021

(n)

31‌

1

Month

USD

LIBOR

+

5.00%

Intelsat

Jackson

Holdings

SA

6.50%,

07/13/2022

(n)

2,746‌

2,757‌

1

Month

USD

LIBOR

+

5.50%

7.89%,

11/27/2023

(n)

5,816‌

5,900‌

1

Month

USD

LIBOR

+

3.75%

8.62%,

01/02/2024

(n)

1,425‌

1,447‌

Intrado

Corp

4.50%,

10/10/2024

(n)

258‌

248‌

3

Month

USD

LIBOR

+

3.50%

5.00%,

10/10/2024

(n)

4,917‌

4,748‌

3

Month

USD

LIBOR

+

4.00%

Iridium

Satellite

LLC

3.25%,

11/06/2026

(n)

1,823‌

1,819‌

1

Month

USD

LIBOR

+

2.50%

Maxar

Technologies

Ltd

2.84%,

10/05/2024

(n)

4,251‌

4,200‌

1

Month

USD

LIBOR

+

2.75%

Metronet

Systems

Holdings

LLC

4.50%,

05/26/2028

(n)

1,250‌

1,248‌

1

Month

USD

LIBOR

+

3.75%

MLN

US

Holdco

LLC

4.59%,

11/30/2025

(n)

355‌

322‌

3

Month

USD

LIBOR

+

4.50%

Plantronics

Inc

2.59%,

07/02/2025

(n)

812‌

793‌

3

Month

USD

LIBOR

+

2.50%

Windstream

Services

LLC

7.25%,

08/11/2027

(n)

382‌

383‌

1

Month

USD

LIBOR

+

6.25%

$

38,960‌

Transportation

-

0.02%

Genesee

&

Wyoming

Inc

2.15%,

12/30/2026

(n)

307‌

303‌

1

Month

USD

LIBOR

+

2.00%

XPO

Logistics

Inc

1.88%,

02/24/2025

(n)

394‌

391‌

1

Month

USD

LIBOR

+

1.75%

$

694‌

TOTAL

SENIOR

FLOATING

RATE

INTERESTS

$

406,110‌

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

-

24.98%

Principal

Amount

(000's)

Value

(000's)

U.S.

Treasury

-

9.56%

0.08%,

04/30/2023

(k),(l)

$

104,500‌

$

104,507‌

US

Treasury

3

Month

Bill

Money

Market

Yield

+

0.07%

0.09%,

01/31/2023

(k)

147,500‌

147,573‌

US

Treasury

3

Month

Bill

Money

Market

Yield

+

0.10%

0.10%,

07/31/2022

(k)

63,000‌

63,029‌

US

Treasury

3

Month

Bill

Money

Market

Yield

+

0.11%

0.10%,

10/31/2022

(k)

74,000‌

74,043‌

US

Treasury

3

Month

Bill

Money

Market

Yield

+

0.11%

0.13%,

02/28/2023

(k)

3,000‌

2,999‌

0.13%,

04/30/2023

(k)

8,400‌

8,394‌

0.16%,

04/30/2022

(k)

13,000‌

13,009‌

US

Treasury

3

Month

Bill

Money

Market

Yield

+

0.11%

1.13%,

08/15/2040

1,495‌

1,327‌

1.38%,

11/15/2040

4,375‌

4,050‌

1.88%,

02/15/2041

370‌

373‌

$

419,304‌

U.S.

Treasury

Bill

-

0.55%

0.02%,

09/14/2021

(m)

4,000‌

0.03%,

10/21/2021

(k),(m)

10,000‌

9,999‌

0.04%,

12/16/2021

(k),(m)

10,000‌

9,999‌

$

23,998‌

U.S.

Treasury

Inflation-Indexed

Obligations

-

14.87%

0.13%,

01/15/2023

25,047‌

25,984‌

0.13%,

07/15/2024

23,893‌

25,636‌

0.13%,

10/15/2024

18,151‌

19,506‌

0.13%,

04/15/2025

8,562‌

9,240‌

0.13%,

10/15/2025

11,696‌

12,760‌

0.13%,

04/15/2026

10,355‌

11,313‌

0.13%,

07/15/2026

17,062‌

18,792‌

0.13%,

01/15/2030

22,319‌

24,880‌

0.13%,

07/15/2030

20,039‌

22,458‌

0.13%,

01/15/2031

20,890‌

23,329‌

0.13%,

07/15/2031

11,212‌

12,571‌

0.13%,

02/15/2051

7,989‌

9,050‌

0.25%,

01/15/2025

15,414‌

16,662‌

0.25%,

07/15/2029

18,397‌

20,762‌

0.25%,

02/15/2050

8,174‌

9,498‌

0.38%,

07/15/2023

23,801‌

25,157‌

0.38%,

07/15/2025

19,229‌

21,120‌

0.38%,

01/15/2027

18,946‌

21,150‌

0.38%,

07/15/2027

16,161‌

18,194‌

0.50%,

04/15/2024

14,710‌

15,779‌

0.50%,

01/15/2028

22,075‌

25,022‌

0.63%,

04/15/2023

24,083‌

25,296‌

0.63%,

01/15/2024

23,482‌

25,154‌

0.63%,

01/15/2026

16,823‌

18,730‌

0.63%,

02/15/2043

8,059‌

9,828‌

0.75%,

07/15/2028

20,552‌

23,853‌

0.75%,

02/15/2042

10,210‌

12,714‌

0.75%,

02/15/2045

11,921‌

15,034‌

0.88%,

01/15/2029

10,400‌

12,196‌

0.88%,

02/15/2047

7,541‌

9,946‌

1.00%,

02/15/2046

6,353‌

8,493‌

1.00%,

02/15/2048

6,269‌

8,570‌

1.00%,

02/15/2049

5,312‌

7,324‌

1.38%,

02/15/2044

10,929‌

15,362‌

1.75%,

01/15/2028

6,289‌

7,667‌

2.00%,

01/15/2026

8,276‌

9,745‌

2.13%,

02/15/2040

4,376‌

6,649‌

2.13%,

02/15/2041

6,384‌

9,816‌

2.38%,

01/15/2025

6,635‌

7,673‌

2.38%,

01/15/2027

7,762‌

9,553‌

2.50%,

01/15/2029

4,456‌

5,793‌

Consolidated

Schedule

of

Investments

Diversified

Real

Asset

Fund

See

accompanying

notes.

113

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

U.S.

Treasury

Inflation-Indexed

Obligations

(continued)

3.38%,

04/15/2032

$

3,438‌

$

5,127‌

3.63%,

04/15/2028

5,908‌

8,012‌

3.88%,

04/15/2029

314‌

445‌

$

651,843‌

TOTAL

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

$

1,095,145‌

TOTAL

PURCHASED

OPTIONS

-

0.00%

$

22‌

TOTAL

PURCHASED

INTEREST

RATE

SWAPTIONS

-

0.06%

$

2,491‌

Total

Investments

$

4,431,217‌

Other

Assets

and

Liabilities

- (1.08)%

(47,364‌)

TOTAL

NET

ASSETS

-

100.00%

$

4,383,853‌

(a)

Current

yield

shown

is

as

of

period

end.

(b)

Security

or

a

portion

of

the

security

was

received

as

collateral

for

securities

lending.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$13,851

or

0.32%

of

net

assets.

(c)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(d)

Non-income

producing

security

(e)

Security

or

a

portion

of

the

security

was

on

loan. At

the

end

of

the

period,

the

value

of

these

securities

totaled

$13,459

or

0.31%

of

net

assets.

(f)

Security

exempt

from

registration

under

Rule

144A

of

the

Securities

Act

of

1933.

These

securities

may

be

resold

in

transactions

exempt

from

registration,

normally

to

qualified

institutional

buyers.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$248,781

or

5.67%

of

net

assets.

(g)

The

value

of

these

investments

was

determined

using

significant

unobservable

inputs,

in

good

faith

by

the

Manager,

under

procedures

established

and

periodically

reviewed

by

the

Board

of

Directors.

(h)

Restricted

Security.

Please

see

Restricted

Securities

sub-schedule

for

additional

information.

(

i

)

Security

is

an

Interest

Only

Strip.

(j)

Certain

variable

rate

securities

are

not

based

on

a

published

reference

rate

and

spread

but

are

determined

by

the

issuer

or

agent

and

are

based

on

current

market

conditions. These

securities

do

not

indicate

a

reference

rate

and

spread

in

their

description.

Rate

shown

is

the

rate

in

effect

as

of

period

end.

(k)

All

or

a

portion

of

this

security

is

owned

by

the

DRA

Cayman

Corporation,

which

is

a

100%

owned

subsidiary

of

the

fund.

(l)

Security

or

a

portion

of

the

security

was

pledged

to

cover

margin

requirements

for

futures

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$50,080

or

1.14%

of

net

assets.

(m)

Rate

shown

is

the

discount

rate

of

the

original

purchase.

(n)

Rate

information

disclosed

is

based

on

an

average

weighted

rate

of

the

underlying

tranches

as

of

period

end.

(o)

Payment

in

kind;

the

issuer

has

the

option

of

paying

additional

securities

in

lieu

of

cash.

(p)

This

Senior

Floating

Rate

Note

will

settle

after

2021,

at

which

time

the

interest

rate

will

be

determined.

Portfolio

Summary (unaudited)

Sector

Percent

Government

31.41‌%

Financial

11.88‌%

Energy

11.44‌%

Utilities

10.71‌%

Basic

Materials

8.62‌%

Industrial

7.55‌%

Consumer,

Non-cyclical

6.08‌%

Mortgage

Securities

3.79‌%

Money

Market

Funds

3.04‌%

Consumer,

Cyclical

2.71‌%

Communications

1.86‌%

Technology

1.56‌%

Investment

Companies

0.37‌%

Purchased

Interest

Rate

Swaptions

0.06‌%

Purchased

Options

0.00‌%

Other

Assets

and

Liabilities

(1.08‌)%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

Purchases

Sales

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

$

69,408‌

$

2,988,43

4‌

$

2,928,561‌

$

129,28

1‌

$

69,408‌

$

2,988,43

4‌

$

2,928,561‌

$

129,28

1‌

Income

(a)

Realized

Gain/Loss

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

Loss

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

(a)

Amount

excludes

earnings

from

securities

lending

collateral.

Restricted

Securities

Security

Name

Acquisition

Date

Cost

Value

Percent

of

Net

Assets

Millennium

Health

LLC

03/15/2016

$

—‌

$

19‌

0.00%

Millennium

Health

LLC

03/15/2016

—‌

16‌

0.00%

Total

$

35‌

0.00%

Amounts

in

thousands.

Options

Purchased

Options

Outstanding

Counterparty

Shares

Notional

Amount

Exercise

Price

Expiration

Date

Upfront

Payments

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Put

-

90

Day

Eurodollar

Future;

December

2022

N/A

92‌

$

230‌

$

99.25‌

10/18/2021

$

8‌

$

—‌

$

(8‌)

Put

-

US

10

Year

Note

Future;

December

2021

N/A

24‌

$

133.00‌

11/29/2021

23‌

22‌

(1‌)

Total

$

31‌

$

22‌

$

(9‌)

Consolidated

Schedule

of

Investments

Diversified

Real

Asset

Fund

See

accompanying

notes.

114

Options

(continued)

Written

Options

Outstanding

Counterparty

Shares

Notional

Amount

Exercise

Price

Expiration

Date

Upfront

Receipts

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Call

-

US

10

Year

Note

Future;

December

2021

N/A

24‌

$

24‌

$

136.00‌

11/29/2021

$

(7‌)

$

(7‌)

$

—‌

Put

-

US

10

Year

Note

Future;

December

2021

N/A

48‌

$

131.00‌

11/29/2021

(19‌)

(17‌)

2‌

Total

$

(26‌)

$

(24‌)

$

2‌

Amounts

in

thousands

except

contracts/shares.

Interest

Rate

Swaptions

Purchased

Swaptions

Outstanding

Counterparty

Floating

Rate

Index

Pay/

Receive

Floating

Rate

Notional

Amount

Exercise

Rate

Expiration

Date

Upfront

Payments

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Call

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Pay

$

1,330‌

2.95%

03/13/2024

$

60‌

$

167‌

$

107‌

Call

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Pay

1,120‌

1.50%

02/26/2025

59‌

38‌

(21‌)

Call

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Receive

1,490‌

3.09%

12/07/2038

69‌

187‌

118‌

Call

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Pay

1,956‌

2.98%

03/08/2024

89‌

249‌

160‌

Call

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Pay

560‌

3.05%

01/11/2029

32‌

69‌

37‌

Call

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Pay

560‌

3.08%

01/30/2029

32‌

70‌

38‌

Call

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

1,700‌

1.55%

07/30/2024

62‌

59‌

(3‌)

Call

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

770‌

2.00%

07/01/2024

34‌

44‌

10‌

Call

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

280‌

1.42%

06/06/2025

20‌

9‌

(11‌)

Call

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

770‌

1.97%

06/25/2024

36‌

43‌

7‌

Call

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

740‌

0.89%

05/01/2025

39‌

12‌

(27‌)

Call

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

505‌

1.28%

06/05/2025

27‌

14‌

(13‌)

Call

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

1,280‌

2.60%

04/08/2026

72‌

121‌

49‌

Call

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

505‌

1.42%

06/06/2025

27‌

16‌

(11‌)

Call

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

1,030‌

1.68%

07/23/2024

45‌

41‌

(4‌)

Call

-

10

Year

Interest

Rate

Swap

JPMorgan

Chase

3

Month

USD

LIBOR

Receive

410‌

2.99%

04/28/2038

19‌

49‌

30‌

Call

-

10

Year

Interest

Rate

Swap

JPMorgan

Chase

3

Month

USD

LIBOR

Pay

130‌

2.86%

02/23/2039

7‌

15‌

8‌

Call

-

10

Year

Interest

Rate

Swap

Morgan

Stanley

&

Co

3

Month

USD

LIBOR

Pay

560‌

3.04%

01/12/2029

32‌

68‌

36‌

Call

-

10

Year

Interest

Rate

Swap

Morgan

Stanley

&

Co

3

Month

USD

LIBOR

Pay

1,040‌

1.68%

08/05/2024

46‌

42‌

(4‌)

Call

-

5

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

7,750‌

1.20%

04/29/2022

75‌

114‌

39‌

Call

-

5

Year

Interest

Rate

Swap

JPMorgan

Chase

3

Month

USD

LIBOR

Pay

2,480‌

1.53%

04/06/2022

36‌

68‌

32‌

Call

-

5

Year

Interest

Rate

Swap

Morgan

Stanley

&

Co

3

Month

USD

LIBOR

Pay

5,050‌

1.39%

04/11/2022

76‌

110‌

34‌

Put

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Receive

560‌

3.08%

01/30/2029

32‌

16‌

(16‌)

Put

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Receive

1,120‌

1.50%

02/26/2025

59‌

69‌

10‌

Put

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Receive

1,390‌

2.25%

08/09/2022

33‌

9‌

(24‌)

Put

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

6

Month

JPY

LIBOR

Pay

JPY

758,545‌

1.10%

06/30/2022

103‌

—‌

(103‌)

Put

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Receive

$

1,330‌

2.95%

03/13/2024

60‌

14‌

(46‌)

Consolidated

Schedule

of

Investments

Diversified

Real

Asset

Fund

See

accompanying

notes.

115

Interest

Rate

Swaptions

(continued)

Purchased

Swaptions

Outstanding

Counterparty

Floating

Rate

Index

Pay/

Receive

Floating

Rate

Notional

Amount

Exercise

Rate

Expiration

Date

Upfront

Payments

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Put

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Receive

$

1,956‌

2.98%

03/08/2024

$

90‌

$

20‌

$

(70‌)

Put

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Receive

1,490‌

3.09%

12/07/2038

70‌

51‌

(19‌)

Put

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Receive

560‌

3.05%

01/11/2029

32‌

16‌

(16‌)

Put

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

1,030‌

1.68%

07/23/2024

46‌

49‌

3‌

Put

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

770‌

1.97%

06/25/2024

35‌

26‌

(9‌)

Put

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

1,280‌

2.60%

04/08/2026

71‌

36‌

(35‌)

Put

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

740‌

0.89%

05/01/2025

40‌

74‌

34‌

Put

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

320‌

2.50%

06/21/2024

3‌

6‌

3‌

Put

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

2,430‌

1.80%

08/06/2024

96‌

102‌

6‌

Put

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

770‌

2.00%

07/01/2024

34‌

26‌

(8‌)

Put

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

280‌

1.42%

06/06/2025

13‌

19‌

6‌

Put

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

505‌

1.28%

06/05/2025

27‌

38‌

11‌

Put

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

505‌

1.42%

06/06/2025

27‌

34‌

7‌

Put

-

10

Year

Interest

Rate

Swap

JPMorgan

Chase

3

Month

USD

LIBOR

Receive

130‌

2.86%

02/23/2039

6‌

5‌

(1‌)

Put

-

10

Year

Interest

Rate

Swap

JPMorgan

Chase

3

Month

USD

LIBOR

Receive

410‌

2.99%

04/28/2038

19‌

15‌

(4‌)

Put

-

10

Year

Interest

Rate

Swap

JPMorgan

Chase

3

Month

USD

LIBOR

Receive

2,010‌

2.25%

08/03/2022

54‌

13‌

(41‌)

Put

-

10

Year

Interest

Rate

Swap

Morgan

Stanley

&

Co

3

Month

USD

LIBOR

Receive

1,960‌

2.50%

06/14/2024

88‌

38‌

(50‌)

Put

-

10

Year

Interest

Rate

Swap

Morgan

Stanley

&

Co

3

Month

USD

LIBOR

Receive

1,330‌

2.50%

06/21/2024

54‌

26‌

(28‌)

Put

-

10

Year

Interest

Rate

Swap

Morgan

Stanley

&

Co

3

Month

USD

LIBOR

Receive

560‌

3.04%

01/12/2029

32‌

16‌

(16‌)

Put

-

10

Year

Interest

Rate

Swap

Morgan

Stanley

&

Co

3

Month

USD

LIBOR

Receive

1,040‌

1.68%

08/05/2024

47‌

49‌

2‌

Put

-

30

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Receive

2,210‌

2.85%

05/10/2022

128‌

9‌

(119‌)

Put

-

5

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Receive

8,010‌

1.25%

07/18/2022

95‌

76‌

(19‌)

Put

-

5

Year

Interest

Rate

Swap

Barclays

Bank

PLC

6

Month

Euro

Interbank

Offered

Rate

Receive

EUR

4,670‌

0.15%

11/16/2021

34‌

3‌

(31‌)

Put

-

5

Year

Interest

Rate

Swap

JPMorgan

Chase

3

Month

USD

LIBOR

Receive

$

2,480‌

1.53%

04/06/2022

36‌

8‌

(28‌)

Put

-

5

Year

Interest

Rate

Swap

Morgan

Stanley

&

Co

3

Month

USD

LIBOR

Receive

5,050‌

1.39%

04/11/2022

73‌

23‌

(50‌)

Total

$

2,531‌

$

2,491‌

$

(40‌)

Written

Swaptions

Outstanding

Counterparty

Floating

Rate

Index

Pay/

Receive

Floating

Rate

Notional

Amount

Exercise

Rate

Expiration

Date

Upfront

Receipts

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Call

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Receive

$

1,220‌

1.25%

01/28/2022

$

(29‌)

$

(14‌)

$

15‌

Call

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Receive

1,780‌

2.01%

03/02/2023

(68‌)

(104‌)

(36‌)

Call

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Receive

1,100‌

1.25%

01/03/2023

(37‌)

(20‌)

17‌

Call

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Receive

1,150‌

1.62%

02/22/2022

(31‌)

(37‌)

(6‌)

Call

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Receive

2,000‌

1.44%

01/10/2023

(66‌)

(51‌)

15‌

Consolidated

Schedule

of

Investments

Diversified

Real

Asset

Fund

See

accompanying

notes.

116

Interest

Rate

Swaptions

(continued)

Written

Swaptions

Outstanding

Counterparty

Floating

Rate

Index

Pay/

Receive

Floating

Rate

Notional

Amount

Exercise

Rate

Expiration

Date

Upfront

Receipts

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Call

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Receive

$

1,590‌

3.05%

03/13/2029

$

(84‌)

$

(195‌)

$

(111‌)

Call

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

915‌

1.06%

10/12/2022

(31‌)

(10‌)

21‌

Call

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

985‌

1.23%

12/19/2022

(32‌)

(17‌)

15‌

Call

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

985‌

1.24%

12/19/2022

(32‌)

(17‌)

15‌

Call

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

1,140‌

0.74%

05/03/2022

(40‌)

(4‌)

36‌

Call

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

2,520‌

1.30%

11/15/2021

(25‌)

—‌

Call

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

2,200‌

1.52%

09/23/2021

(31‌)

(45‌)

(14‌)

Call

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

2,430‌

1.00%

11/05/2021

(12‌)

(5‌)

7‌

Call

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

110‌

0.74%

05/03/2022

(3‌)

—‌

3‌

Call

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

1,050‌

1.78%

10/15/2021

(23‌)

(45‌)

(22‌)

Call

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

1,330‌

1.00%

01/28/2022

(18‌)

(6‌)

12‌

Call

-

10

Year

Interest

Rate

Swap

JPMorgan

Chase

3

Month

USD

LIBOR

Receive

1,710‌

1.40%

06/08/2022

(16‌)

(36‌)

(20‌)

Call

-

2

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Receive

2,680‌

0.30%

12/07/2021

(2‌)

—‌

Call

-

2

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Receive

5,970‌

0.52%

03/04/2022

(18‌)

(17‌)

1‌

Call

-

2

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

2,502‌

0.35%

12/07/2021

(1‌)

(2‌)

(1‌)

Call

-

2

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

178‌

0.35%

12/07/2021

—‌

Call

-

2

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

11,700‌

0.51%

03/02/2022

(37‌)

(32‌)

5‌

Call

-

2

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

9,250‌

0.41%

02/24/2022

(22‌)

(14‌)

8‌

Call

-

2

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

5,970‌

0.56%

03/22/2022

(20‌)

—‌

Call

-

2

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

11,740‌

0.57%

03/24/2022

(38‌)

(40‌)

(2‌)

Call

-

2

Year

Interest

Rate

Swap

JPMorgan

Chase

3

Month

USD

LIBOR

Receive

17,470‌

0.49%

03/03/2022

(49‌)

(41‌)

8‌

Call

-

2

Year

Interest

Rate

Swap

Morgan

Stanley

&

Co

3

Month

USD

LIBOR

Receive

14,160‌

0.51%

01/11/2022

(42‌)

—‌

Call

-

5

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Receive

3,880‌

0.90%

04/25/2022

(20‌)

(25‌)

(5‌)

Call

-

5

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Receive

11,630‌

0.90%

04/29/2022

(52‌)

(76‌)

(24‌)

Put

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Pay

1,390‌

3.25%

08/09/2022

(8‌)

(2‌)

6‌

Put

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Pay

1,390‌

2.75%

08/09/2022

(17‌)

(4‌)

13‌

Put

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Pay

1,950‌

2.10%

01/07/2022

(45‌)

(4‌)

41‌

Put

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Pay

1,950‌

2.15%

01/11/2022

(45‌)

(3‌)

42‌

Put

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Pay

1,590‌

3.05%

03/13/2029

(85‌)

(46‌)

39‌

Put

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Pay

1,150‌

1.62%

02/22/2022

(30‌)

(12‌)

18‌

Put

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Pay

1,780‌

2.01%

03/02/2023

(68‌)

(32‌)

36‌

Put

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Pay

4,810‌

2.75%

05/10/2022

(140‌)

(8‌)

132‌

Put

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Pay

1,220‌

1.25%

01/28/2022

(29‌)

(30‌)

(1‌)

Consolidated

Schedule

of

Investments

Diversified

Real

Asset

Fund

See

accompanying

notes.

117

Interest

Rate

Swaptions

(continued)

Written

Swaptions

Outstanding

Counterparty

Floating

Rate

Index

Pay/

Receive

Floating

Rate

Notional

Amount

Exercise

Rate

Expiration

Date

Upfront

Receipts

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Put

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Pay

$

1,100‌

1.25%

01/03/2023

$

(36‌)

$

(51‌)

$

(15‌)

Put

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Pay

2,000‌

1.44%

01/10/2023

(65‌)

(73‌)

(8‌)

Put

-

10

Year

Interest

Rate

Swap

Barclays

Bank

PLC

6

Month

Euro

Interbank

Offered

Rate

Pay

EUR

2,330‌

0.70%

05/16/2023

(62‌)

(25‌)

37‌

Put

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

$

1,330‌

1.50%

01/28/2022

(18‌)

(17‌)

1‌

Put

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

1,050‌

1.78%

10/15/2021

(23‌)

(1‌)

22‌

Put

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

2,520‌

1.50%

11/15/2021

(30‌)

(17‌)

13‌

Put

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

110‌

0.74%

05/03/2022

(5‌)

(8‌)

(3‌)

Put

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

2,200‌

1.52%

09/23/2021

(30‌)

(3‌)

27‌

Put

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

985‌

1.23%

12/19/2022

(32‌)

(46‌)

(14‌)

Put

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

915‌

1.06%

10/12/2022

(30‌)

(49‌)

(19‌)

Put

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

160‌

2.25%

08/21/2024

(2‌)

(4‌)

(2‌)

Put

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

1,140‌

0.74%

05/03/2022

(39‌)

(79‌)

(40‌)

Put

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

1,230‌

1.60%

03/01/2022

(23‌)

(15‌)

8‌

Put

-

10

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

985‌

1.24%

12/19/2022

(32‌)

(45‌)

(13‌)

Put

-

10

Year

Interest

Rate

Swap

JPMorgan

Chase

3

Month

USD

LIBOR

Pay

2,010‌

3.25%

08/03/2022

(13‌)

(2‌)

11‌

Put

-

10

Year

Interest

Rate

Swap

JPMorgan

Chase

3

Month

USD

LIBOR

Pay

2,010‌

2.75%

08/03/2022

(28‌)

(6‌)

22‌

Put

-

10

Year

Interest

Rate

Swap

JPMorgan

Chase

3

Month

USD

LIBOR

Pay

1,710‌

2.40%

06/08/2022

(20‌)

(7‌)

13‌

Put

-

10

Year

Interest

Rate

Swap

Morgan

Stanley

&

Co

3

Month

USD

LIBOR

Pay

1,330‌

3.50%

06/21/2024

(19‌)

(9‌)

10‌

Put

-

10

Year

Interest

Rate

Swap

Morgan

Stanley

&

Co

3

Month

USD

LIBOR

Pay

1,960‌

3.50%

06/14/2024

(33‌)

(14‌)

19‌

Put

-

10

Year

Interest

Rate

Swap

Morgan

Stanley

&

Co

3

Month

USD

LIBOR

Pay

1,960‌

3.00%

06/14/2024

(54‌)

(23‌)

31‌

Put

-

10

Year

Interest

Rate

Swap

Morgan

Stanley

&

Co

3

Month

USD

LIBOR

Pay

1,730‌

2.25%

08/21/2024

(52‌)

(47‌)

5‌

Put

-

10

Year

Interest

Rate

Swap

Morgan

Stanley

&

Co

3

Month

USD

LIBOR

Pay

1,330‌

3.00%

06/21/2024

(33‌)

(16‌)

17‌

Put

-

2

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Pay

5,490‌

0.50%

12/07/2021

(4‌)

(3‌)

1‌

Put

-

2

Year

Interest

Rate

Swap

Barclays

Bank

PLC

6

Month

Euro

Interbank

Offered

Rate

Pay

EUR

8,490‌

0.25%

09/07/2021

(14‌)

—‌

14‌

Put

-

2

Year

Interest

Rate

Swap

Barclays

Bank

PLC

3

Month

USD

LIBOR

Pay

$

5,970‌

0.52%

03/04/2022

(17‌)

(11‌)

6‌

Put

-

2

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

11,700‌

0.51%

03/02/2022

(36‌)

(22‌)

14‌

Put

-

2

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

5,463‌

0.45%

12/13/2021

(5‌)

—‌

Put

-

2

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

5,970‌

0.56%

03/22/2022

(20‌)

(11‌)

9‌

Put

-

2

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

4,010‌

0.50%

01/20/2022

(7‌)

(5‌)

2‌

Put

-

2

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

9,250‌

0.75%

02/28/2022

(21‌)

(7‌)

14‌

Put

-

2

Year

Interest

Rate

Swap

Deutsche

Bank

AG

3

Month

USD

LIBOR

Pay

11,740‌

0.57%

03/24/2022

(38‌)

(22‌)

16‌

Put

-

2

Year

Interest

Rate

Swap

JPMorgan

Chase

3

Month

USD

LIBOR

Pay

17,470‌

0.49%

03/03/2022

(50‌)

(36‌)

14‌

Consolidated

Schedule

of

Investments

Diversified

Real

Asset

Fund

See

accompanying

notes.

118

Interest

Rate

Swaptions

(continued)

Written

Swaptions

Outstanding

Counterparty

Floating

Rate

Index

Pay/

Receive

Floating

Rate

Notional

Amount

Exercise

Rate

Expiration

Date

Upfront

Receipts

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Put

-

2

Year

Interest

Rate

Swap

Morgan

Stanley

&

Co

3

Month

USD

LIBOR

Pay

$

14,160‌

0.51%

01/11/2022

$

(40‌)

$

(15‌)

$

25‌

Total

$

(2,277‌)

$

(1,777‌)

$

500‌

Amounts

in

thousands.

Futures

Description

and

Expiration

Date

Type

Notional

Amount

Value

and

Unrealized

Appreciation/(Depreciation)

90

Day

Short

Sterling;

September

2022

Long

412‌

$

70,476‌

$

(14‌)

Australia

10

Year

Bond;

September

2021

Short

41‌

4,373‌

(24‌)

Brent

Crude;

January

2022

(a)

Long

387‌

27,268‌

(124‌)

Brent

Crude;

November

2021

(a)

Long

312‌

22,349‌

1,172‌

Canadian

Bank

Acceptance;

December

2021

Short

38‌

7,493‌

—‌

Canadian

Bank

Acceptance;

June

2022

Long

38‌

7,477‌

4‌

Canadian

Bank

Acceptance;

March

2022

Long

49‌

9,656‌

8‌

Canadian

Bank

Acceptance;

September

2021

Short

49‌

9,666‌

—‌

Coffee

'C';

December

2021

(a)

Long

334‌

24,536‌

769‌

Copper;

December

2021

(a)

Long

324‌

35,438‌

(1,336‌)

Corn;

December

2021

(a)

Long

1,255‌

33,524‌

(2,350‌)

Cotton

No.2;

December

2021

(a)

Long

204‌

9,438‌

582‌

Cotton

No.2;

March

2022

(a)

Long

6‌

275‌

—‌

Euro

Bond

10

Year

Bond;

September

2021

Short

130‌

26,931‌

(43‌)

Euro

Buxl

30

Year

Bond;

September

2021

Short

35‌

8,783‌

(110‌)

Euro-Oat;

September

2021

Long

22‌

4,187‌

(11‌)

Gasoline

RBOB;

January

2022

(a)

Long

64‌

5,390‌

(10‌)

Gasoline

RBOB;

November

2021

(a)

Long

130‌

11,283‌

(98‌)

Gold

100

oz

;

December

2021

(a)

Long

425‌

77,269‌

279‌

KC

HRW

Wheat;

December

2021

(a)

Long

292‌

10,395‌

(205‌)

Lean

Hogs;

December

2021

(a)

Long

116‌

3,802‌

(15‌)

Lean

Hogs;

October

2021

(a)

Long

231‌

8,205‌

(172‌)

Live

Cattle;

October

2021

(a)

Long

464‌

23,553‌

46‌

LME

Lead;

December

2021

(a)

Short

—‌

(520‌)

LME

Nickel;

December

2021

(a)

Long

139‌

16,302‌

1,500‌

LME

PRI

Alum;

December

2021

(a)

Long

459‌

31,174‌

3,634‌

LME

Zinc;

December

2021

(a)

Long

250‌

18,786‌

399‌

Low

Sulphur

Gasoline;

January

2022

(a)

Long

146‌

8,654‌

7‌

Low

Sulphur

Gasoline;

November

2021

(a)

Long

185‌

11,082‌

264‌

Natural

Gas;

April

2022

(a)

Long

167‌

5,795‌

12‌

Natural

Gas;

December

2021

(a)

Long

575‌

25,961‌

3,544‌

Natural

Gas;

January

2022

(a)

Long

279‌

12,731‌

25‌

Natural

Gas;

November

2021

(a)

Long

647‌

28,630‌

3,151‌

NY

Harb

ULSD;

January

2022

(a)

Long

99‌

8,790‌

(9‌)

NY

Harb

ULSD;

November

2021

(a)

Long

80‌

7,137‌

67‌

Silver;

December

2021

(a)

Long

177‌

21,245‌

367‌

Soybean

Meal;

December

2021

(a)

Long

462‌

15,967‌

(930‌)

Soybean

Oil;

December

2021

(a)

Long

454‌

16,003‌

(807‌)

Soybean

Oil;

January

2022

(a)

Long

221‌

7,786‌

(522‌)

Soybean;

November

2021

(a)

Long

476‌

30,762‌

(2,052‌)

Sugar

#11;

October

2021

(a)

Long

949‌

21,088‌

2,086‌

UK

10

Year

Gilt;

December

2021

Short

85‌

14,986‌

113‌

US

10

Year

Note;

December

2021

Short

96‌

12,812‌

(50‌)

US

10

Year

Ultra

Note;

December

2021

Short

81‌

11,989‌

(47‌)

US

2

Year

Note;

December

2021

Long

66‌

14,542‌

10‌

US

5

Year

Note;

December

2021

Long

246‌

30,435‌

98‌

US

Ultra

Bond;

December

2021

Short

3‌

592‌

(3‌)

Wheat;

December

2021

(a)

Long

499‌

18,020‌

(426‌)

WTI

Crude;

December

2021

(a)

Long

14‌

951‌

(5‌)

WTI

Crude;

June

2022

(a)

Long

480‌

31,483‌

(901‌)

WTI

Crude;

November

2021

(a)

Long

394‌

26,894‌

(62‌)

Total

$

7,291‌

Amounts

in

thousands

except

(a)

All

or

a

portion

of

this

security

is

owned

by

the

DRA

Cayman

Corporation,

which

is

a

100%

owned

subsidiary

of

the

fund.

Consolidated

Schedule

of

Investments

Diversified

Real

Asset

Fund

See

accompanying

notes.

119

Foreign

Currency

Unrealized

Appreciation/(Depreciation)

Counterparty

Settlement

Date

Currency

to

Accept

Currency

to

Deliver

Asset

Liability

Bank

of

America

NA

09/03/2021

$

30,169‌

EUR

25,372‌

$

211‌

$

—‌

Bank

of

America

NA

09/15/2021

AUD

1,740‌

$

1,322‌

—‌

(49‌)

Bank

of

America

NA

09/15/2021

AUD

925‌

JPY

75,668‌

—‌

(11‌)

Bank

of

America

NA

09/15/2021

CAD

1,690‌

$

1,360‌

—‌

(20‌)

Bank

of

America

NA

09/15/2021

EUR

580‌

$

684‌

1‌

—‌

Bank

of

America

NA

09/15/2021

JPY

75,904‌

$

690‌

—‌

Bank

of

America

NA

09/15/2021

JPY

75,662‌

AUD

920‌

15‌

—‌

Bank

of

America

NA

09/15/2021

$

1,340‌

CAD

1,658‌

26‌

—‌

Bank

of

America

NA

09/15/2021

$

1,301‌

AUD

1,730‌

35‌

—‌

Barclays

Bank

PLC

09/15/2021

EUR

580‌

$

690‌

—‌

(5‌)

Barclays

Bank

PLC

09/15/2021

$

680‌

CAD

853‌

4‌

—‌

BNP

Paribas

09/03/2021

$

490‌

EUR

413‌

2‌

—‌

Citigroup

Inc

09/15/2021

CAD

804‌

$

660‌

—‌

(23‌)

Citigroup

Inc

09/15/2021

EUR

1,130‌

$

1,379‌

—‌

(44‌)

Goldman

Sachs

&

Co

09/15/2021

$

664‌

EUR

560‌

3‌

—‌

HSBC

Securities

Inc

09/15/2021

CAD

798‌

$

660‌

—‌

(27‌)

JPMorgan

Chase

09/03/2021

$

59‌

GBP

42‌

1‌

—‌

JPMorgan

Chase

09/03/2021

$

5,911‌

NZD

8,444‌

—‌

(39‌)

JPMorgan

Chase

09/15/2021

AUD

880‌

$

664‌

—‌

(20‌)

JPMorgan

Chase

09/15/2021

EUR

1,100‌

$

1,328‌

—‌

(29‌)

JPMorgan

Chase

09/15/2021

EUR

550‌

JPY

72,284‌

—‌

(8‌)

JPMorgan

Chase

09/15/2021

JPY

72,739‌

EUR

550‌

12‌

—‌

JPMorgan

Chase

09/15/2021

$

1,340‌

EUR

1,120‌

17‌

—‌

JPMorgan

Chase

09/15/2021

$

660‌

CAD

799‌

27‌

—‌

JPMorgan

Chase

09/15/2021

$

690‌

JPY

75,637‌

2‌

—‌

Morgan

Stanley

&

Co

09/03/2021

EUR

23,976‌

$

28,275‌

34‌

—‌

Morgan

Stanley

&

Co

09/03/2021

NZD

8,444‌

$

5,916‌

34‌

—‌

Morgan

Stanley

&

Co

09/15/2021

EUR

540‌

$

642‌

—‌

(4‌)

Morgan

Stanley

&

Co

09/15/2021

$

726‌

EUR

595‌

24‌

—‌

Morgan

Stanley

&

Co

10/05/2021

$

5,916‌

NZD

8,444‌

—‌

(32‌)

Morgan

Stanley

&

Co

10/05/2021

$

22,606‌

EUR

19,156‌

—‌

(25‌)

Royal

Bank

of

Scotland

09/03/2021

EUR

2,994‌

$

3,519‌

16‌

—‌

Royal

Bank

of

Scotland

09/15/2021

$

653‌

EUR

535‌

21‌

—‌

Standard

Chartered

Bank,

Hong

Kong

09/03/2021

$

1,395‌

EUR

1,185‌

—‌

(5‌)

Standard

Chartered

Bank,

Hong

Kong

09/15/2021

AUD

945‌

JPY

76,295‌

—‌

(2‌)

Standard

Chartered

Bank,

Hong

Kong

09/15/2021

JPY

77,203‌

AUD

950‌

7‌

—‌

Standard

Chartered

Bank,

Hong

Kong

09/15/2021

$

685‌

EUR

580‌

—‌

Toronto

Dominion

Bank

09/15/2021

$

645‌

EUR

540‌

8‌

—‌

UBS

AG

10/05/2021

$

354‌

EUR

300‌

—‌

Westpac

Banking

Corporation

09/03/2021

$

6‌

JPY

605‌

—‌

Westpac

Banking

Corporation

09/15/2021

$

673‌

AUD

890‌

22‌

—‌

Total

$

522‌

$

(343‌)

Amounts

in

thousands.

Exchange

Cleared

Interest

Rate

Swaps

Floating

Rate

Index

(Pay)/

Receive

Floating

Rate

Fixed

Rate

Payment

Frequency

Paid

by

Fund

Payment

Frequency

Received

by

Fund

Effective

Date

(a)

Maturity

Date

Notional

Amount

Unrealized

Appreciation/

(Depreciation)

Upfront

Payments/

(Receipts)

Fair

Value

3

Month

USD

LIBOR

Pay

0.49%

Quarterly

Semiannual

N/A

03/02/2024

$

1,770‌

$

1‌

$

—‌

$

1‌

3

Month

USD

LIBOR

Pay

1.91%

Quarterly

Semiannual

N/A

02/22/2051

233‌

13‌

—‌

13‌

3

Month

USD

LIBOR

Receive

1.59%

Semiannual

Quarterly

N/A

02/22/2032

1,175‌

(19‌)

—‌

(19‌)

3

Month

USD

LIBOR

Pay

1.87%

Quarterly

Semiannual

N/A

02/19/2051

465‌

22‌

—‌

22‌

3

Month

USD

LIBOR

Pay

0.48%

Quarterly

Semiannual

N/A

01/21/2026

2,430‌

(32‌)

—‌

(32‌)

3

Month

USD

LIBOR

Receive

0.84%

Semiannual

Quarterly

N/A

11/15/2027

3,050‌

33‌

—‌

33‌

3

Month

USD

LIBOR

Pay

0.93%

Quarterly

Semiannual

N/A

09/17/2026

3,110‌

8‌

—‌

8‌

3

Month

USD

LIBOR

Pay

1.19%

Quarterly

Semiannual

N/A

07/19/2027

2,100‌

6‌

—‌

6‌

3

Month

USD

LIBOR

Receive

1.62%

Semiannual

Quarterly

N/A

02/22/2032

588‌

(11‌)

—‌

(11‌)

3

Month

USD

LIBOR

Pay

1.45%

Quarterly

Semiannual

N/A

01/18/2032

484‌

2‌

—‌

2‌

Consolidated

Schedule

of

Investments

Diversified

Real

Asset

Fund

See

accompanying

notes.

120

Exchange

Cleared

Interest

Rate

Swaps

(continued)

Floating

Rate

Index

(Pay)/

Receive

Floating

Rate

Fixed

Rate

Payment

Frequency

Paid

by

Fund

Payment

Frequency

Received

by

Fund

Effective

Date

(a)

Maturity

Date

Notional

Amount

Unrealized

Appreciation/

(Depreciation)

Upfront

Payments/

(Receipts)

Fair

Value

3

Month

USD

LIBOR

Pay

1.25%

Quarterly

Semiannual

N/A

01/24/2032

$

380‌

$

(6‌)

$

—‌

$

(6‌)

3

Month

USD

LIBOR

Receive

1.74%

Semiannual

Quarterly

N/A

11/23/2030

2,420‌

(98‌)

—‌

(98‌)

3

Month

USD

LIBOR

Pay

0.52%

Quarterly

Semiannual

N/A

04/22/2024

1,740‌

—‌

3

Month

USD

LIBOR

Pay

1.05%

Quarterly

Semiannual

N/A

05/15/2028

1,980‌

(5‌)

—‌

(5‌)

3

Month

USD

LIBOR

Pay

0.54%

Quarterly

Semiannual

N/A

04/26/2024

2,090‌

—‌

3

Month

USD

LIBOR

Receive

0.50%

Semiannual

Quarterly

N/A

08/19/2027

360‌

10‌

—‌

10‌

3

Month

USD

LIBOR

Receive

0.97%

Semiannual

Quarterly

N/A

08/17/2040

300‌

33‌

—‌

33‌

3

Month

USD

LIBOR

Receive

1.53%

Semiannual

Quarterly

N/A

12/15/2022

5,728‌

(100‌)

—‌

(100‌)

3

Month

USD

LIBOR

Receive

0.50%

Semiannual

Quarterly

N/A

08/17/2027

640‌

18‌

—‌

18‌

3

Month

USD

LIBOR

Pay

1.51%

Quarterly

Semiannual

N/A

08/19/2031

110‌

2‌

—‌

2‌

3

Month

USD

LIBOR

Receive

0.23%

Semiannual

Quarterly

N/A

03/01/2023

1,775‌

—‌

3

Month

USD

LIBOR

Pay

0.35%

Quarterly

Semiannual

N/A

11/18/2023

3,400‌

(1‌)

—‌

(1‌)

3

Month

USD

LIBOR

Receive

0.69%

Semiannual

Quarterly

N/A

06/20/2024

1,800‌

(3‌)

—‌

(3‌)

3

Month

USD

LIBOR

Pay

2.15%

Quarterly

Semiannual

N/A

05/16/2033

1,070‌

51‌

—‌

51‌

3

Month

USD

LIBOR

Pay

2.08%

Quarterly

Semiannual

N/A

05/05/2033

270‌

11‌

—‌

11‌

3

Month

USD

LIBOR

Receive

0.28%

Semiannual

Quarterly

N/A

04/23/2023

9,175‌

(5‌)

(1‌)

(6‌)

3

Month

USD

LIBOR

Receive

1.29%

Semiannual

Quarterly

N/A

04/20/2027

1,360‌

(15‌)

—‌

(15‌)

3

Month

USD

LIBOR

Pay

0.59%

Quarterly

Semiannual

N/A

04/20/2024

3,320‌

4‌

—‌

4‌

3

Month

USD

LIBOR

Receive

1.55%

Semiannual

Quarterly

N/A

02/25/2026

3,310‌

(4‌)

—‌

(4‌)

3

Month

USD

LIBOR

Receive

0.73%

Semiannual

Quarterly

N/A

06/21/2024

3,340‌

(8‌)

—‌

(8‌)

3

Month

USD

LIBOR

Pay

1.37%

Quarterly

Semiannual

N/A

03/22/2027

867‌

14‌

—‌

14‌

3

Month

USD

LIBOR

Receive

2.79%

Semiannual

Quarterly

N/A

03/10/2031

2,464‌

(334‌)

—‌

(334‌)

3

Month

USD

LIBOR

Receive

1.71%

Semiannual

Quarterly

N/A

03/06/2026

2,080‌

(6‌)

—‌

(6‌)

3

Month

USD

LIBOR

Receive

1.27%

Semiannual

Quarterly

N/A

02/15/2028

2,700‌

(38‌)

—‌

(38‌)

3

Month

USD

LIBOR

Receive

0.31%

Semiannual

Quarterly

N/A

06/24/2023

6,870‌

(6‌)

—‌

(6‌)

3

Month

USD

LIBOR

Receive

0.77%

Semiannual

Quarterly

N/A

06/28/2024

1,690‌

(5‌)

—‌

(5‌)

3

Month

USD

LIBOR

Receive

0.67%

Semiannual

Quarterly

N/A

04/05/2024

1,700‌

(5‌)

—‌

(5‌)

3

Month

USD

LIBOR

Receive

0.74%

Semiannual

Quarterly

N/A

06/23/2024

1,680‌

(5‌)

—‌

(5‌)

3

Month

USD

LIBOR

Pay

0.44%

Quarterly

Semiannual

N/A

01/25/2024

1,740‌

—‌

3

Month

USD

LIBOR

Receive

1.25%

Semiannual

Quarterly

N/A

11/05/2040

60‌

4‌

—‌

4‌

3

Month

USD

LIBOR

Pay

0.65%

Quarterly

Semiannual

N/A

07/12/2028

1,890‌

(69‌)

—‌

(69‌)

3

Month

USD

LIBOR

Receive

2.38%

Semiannual

Quarterly

N/A

07/05/2049

300‌

(12‌)

—‌

(12‌)

3

Month

USD

LIBOR

Receive

1.77%

Semiannual

Quarterly

N/A

07/12/2023

17,375‌

(242‌)

—‌

(242‌)

3

Month

USD

LIBOR

Receive

1.71%

Semiannual

Quarterly

N/A

08/16/2049

240‌

2‌

—‌

2‌

3

Month

USD

LIBOR

Receive

1.67%

Semiannual

Quarterly

N/A

08/17/2049

180‌

2‌

—‌

2‌

3

Month

USD

LIBOR

Receive

1.65%

Semiannual

Quarterly

N/A

08/22/2034

235‌

3‌

—‌

3‌

3

Month

USD

LIBOR

Receive

1.93%

Semiannual

Quarterly

N/A

10/22/2034

540‌

(7‌)

—‌

(7‌)

3

Month

USD

LIBOR

Receive

2.10%

Semiannual

Quarterly

N/A

10/23/2039

100‌

(1‌)

—‌

(1‌)

Consolidated

Schedule

of

Investments

Diversified

Real

Asset

Fund

See

accompanying

notes.

121

Exchange

Cleared

Interest

Rate

Swaps

(continued)

Floating

Rate

Index

(Pay)/

Receive

Floating

Rate

Fixed

Rate

Payment

Frequency

Paid

by

Fund

Payment

Frequency

Received

by

Fund

Effective

Date

(a)

Maturity

Date

Notional

Amount

Unrealized

Appreciation/

(Depreciation)

Upfront

Payments/

(Receipts)

Fair

Value

3

Month

USD

LIBOR

Pay

1.30%

Quarterly

Semiannual

N/A

08/18/2031

$

460‌

$

(1‌)

$

—‌

$

(1‌)

3

Month

USD

LIBOR

Pay

1.22%

Quarterly

Semiannual

N/A

08/16/2027

720‌

2‌

—‌

2‌

3

Month

USD

LIBOR

Receive

0.78%

Semiannual

Quarterly

N/A

08/15/2024

2,025‌

(4‌)

—‌

(4‌)

3

Month

USD

LIBOR

Pay

1.93%

Quarterly

Semiannual

N/A

12/01/2056

50‌

1‌

—‌

1‌

3

Month

USD

LIBOR

Pay

3.09%

Quarterly

Semiannual

N/A

11/29/2024

6,410‌

523‌

—‌

523‌

3

Month

USD

LIBOR

Receive

0.88%

Semiannual

Quarterly

N/A

07/12/2053

350‌

76‌

—‌

76‌

3

Month

USD

LIBOR

Pay

0.38%

Quarterly

Semiannual

N/A

02/07/2024

3,520‌

(4‌)

—‌

(4‌)

3

Month

USD

LIBOR

Pay

0.40%

Quarterly

Semiannual

N/A

02/08/2024

3,200‌

(3‌)

—‌

(3‌)

3

Month

USD

LIBOR

Receive

0.74%

Semiannual

Quarterly

N/A

08/12/2024

2,670‌

(4‌)

—‌

(4‌)

3

Month

USD

LIBOR

Pay

1.90%

Quarterly

Semiannual

N/A

06/11/2051

280‌

15‌

—‌

15‌

3

Month

USD

LIBOR

Pay

0.36%

Quarterly

Semiannual

N/A

06/02/2025

1,720‌

(20‌)

—‌

(20‌)

3

Month

USD

LIBOR

Receive

0.82%

Semiannual

Quarterly

N/A

09/08/2025

1,110‌

(5‌)

—‌

(5‌)

3

Month

USD

LIBOR

Receive

1.14%

Semiannual

Quarterly

N/A

06/20/2052

310‌

45‌

—‌

45‌

3

Month

USD

LIBOR

Receive

0.77%

Semiannual

Quarterly

N/A

05/04/2032

1,790‌

118‌

—‌

118‌

3

Month

USD

LIBOR

Receive

0.76%

Semiannual

Quarterly

N/A

05/03/2032

870‌

58‌

—‌

58‌

3

Month

USD

LIBOR

Pay

0.82%

Quarterly

Semiannual

N/A

04/14/2030

1,610‌

(57‌)

—‌

(57‌)

3

Month

USD

LIBOR

Pay

0.68%

Quarterly

Semiannual

N/A

06/20/2027

1,705‌

(36‌)

—‌

(36‌)

3

Month

USD

LIBOR

Receive

0.63%

Semiannual

Quarterly

N/A

04/14/2025

3,090‌

2‌

—‌

2‌

3

Month

USD

LIBOR

Pay

1.25%

Quarterly

Semiannual

N/A

09/08/2050

190‌

(20‌)

—‌

(20‌)

3

Month

USD

LIBOR

Receive

1.09%

Semiannual

Quarterly

N/A

06/20/2052

310‌

48‌

1‌

49‌

3

Month

USD

LIBOR

Pay

0.65%

Quarterly

Semiannual

N/A

06/20/2027

1,705‌

(38‌)

—‌

(38‌)

3

Month

USD

LIBOR

Receive

0.67%

Semiannual

Quarterly

N/A

10/09/2030

620‌

33‌

—‌

33‌

6

Month

Euro

Interbank

Offered

Rate

Receive

0.19%

Annual

Semiannual

N/A

01/16/2030

EUR

510‌

(15‌)

(1‌)

(16‌)

6

Month

Euro

Interbank

Offered

Rate

Pay

(0.15)%

Semiannual

Annual

N/A

11/16/2026

2,330‌

23‌

—‌

23‌

6

Month

Euro

Interbank

Offered

Rate

Receive

0.44%

Annual

Semiannual

N/A

05/16/2033

820‌

(28‌)

—‌

(28‌)

6

Month

Euro

Interbank

Offered

Rate

Receive

(0.05)%

Annual

Semiannual

N/A

09/01/2031

90‌

—‌

Canada

Bankers

Acceptances

3

Month

Pay

0.79%

Semiannual

N/A

06/22/2023

CAD

8,680‌

10‌

1‌

11‌

Canada

Bankers

Acceptances

3

Month

Pay

0.64%

Quarterly

Semiannual

N/A

04/21/2023

11,530‌

(1‌)

—‌

(1‌)

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Receive

2.60%

Annual

N/A

06/17/2026

$

5,405‌

108‌

—‌

108‌

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Receive

2.53%

Annual

N/A

06/21/2026

2,615‌

60‌

—‌

60‌

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Receive

2.45%

Annual

N/A

08/23/2031

4,765‌

55‌

—‌

55‌

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Receive

2.43%

Annual

N/A

06/24/2031

5,848‌

157‌

—‌

157‌

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Pay

2.50%

Annual

N/A

06/22/2026

2,338‌

(57‌)

—‌

(57‌)

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Pay

2.59%

Annual

N/A

08/23/2026

4,765‌

(30‌)

—‌

(30‌)

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Pay

2.53%

Annual

N/A

07/28/2031

2,350‌

(21‌)

—‌

(21‌)

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Pay

2.55%

Annual

N/A

06/24/2026

5,848‌

(127‌)

—‌

(127‌)

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Receive

2.73%

Annual

N/A

07/28/2026

2,350‌

13‌

—‌

13‌

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Pay

2.54%

Annual

N/A

07/12/2026

2,330‌

(44‌)

—‌

(44‌)

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Receive

2.44%

Annual

N/A

07/09/2031

2,375‌

54‌

—‌

54‌

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Receive

2.77%

Annual

N/A

08/03/2026

10,100‌

17‌

—‌

17‌

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Receive

3.09%

Annual

N/A

08/03/2023

6,331‌

20‌

—‌

20‌

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Pay

2.91%

Annual

N/A

08/03/2024

6,331‌

(24‌)

—‌

(24‌)

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Receive

3.15%

Annual

N/A

08/02/2023

6,331‌

13‌

—‌

13‌

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Pay

2.96%

Annual

N/A

08/02/2024

6,331‌

(15‌)

—‌

(15‌)

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Pay

2.58%

Annual

N/A

07/09/2026

2,375‌

(40‌)

—‌

(40‌)

Consolidated

Schedule

of

Investments

Diversified

Real

Asset

Fund

See

accompanying

notes.

122

Exchange

Cleared

Interest

Rate

Swaps

(continued)

Floating

Rate

Index

(Pay)/

Receive

Floating

Rate

Fixed

Rate

Payment

Frequency

Paid

by

Fund

Payment

Frequency

Received

by

Fund

Effective

Date

(a)

Maturity

Date

Notional

Amount

Unrealized

Appreciation/

(Depreciation)

Upfront

Payments/

(Receipts)

Fair

Value

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Receive

2.38%

Annual

N/A

06/22/2031

$

2,338‌

$

77‌

$

—‌

$

77‌

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Receive

2.38%

Annual

N/A

07/12/2031

2,330‌

68‌

1‌

69‌

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Pay

2.56%

Annual

N/A

04/19/2026

2,380‌

(68‌)

—‌

(68‌)

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Pay

2.63%

Annual

N/A

06/10/2026

4,630‌

(90‌)

—‌

(90‌)

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Receive

1.33%

Annual

N/A

05/04/2030

3,205‌

471‌

—‌

471‌

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Receive

1.29%

Annual

N/A

05/05/2030

5,115‌

778‌

—‌

778‌

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Pay

1.85%

Annual

N/A

08/10/2030

2,855‌

(324‌)

1‌

(323‌)

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Pay

2.01%

Annual

N/A

09/04/2030

810‌

(75‌)

—‌

(75‌)

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Pay

1.95%

Annual

N/A

09/18/2030

1,230‌

(119‌)

1‌

(118‌)

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Receive

2.52%

Annual

N/A

06/10/2031

4,630‌

90‌

—‌

90‌

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Receive

2.19%

Annual

N/A

12/23/2030

4,565‌

303‌

—‌

303‌

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Pay

2.19%

Annual

N/A

12/31/2030

1,530‌

(100‌)

—‌

(100‌)

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Pay

2.33%

Annual

N/A

01/26/2031

1,305‌

(65‌)

—‌

(65‌)

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Receive

2.30%

Annual

N/A

02/25/2026

5,515‌

243‌

—‌

243‌

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Pay

2.33%

Annual

N/A

03/01/2026

5,360‌

(230‌)

—‌

(230‌)

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Receive

2.31%

Annual

N/A

03/01/2031

4,125‌

207‌

—‌

207‌

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Receive

2.25%

Annual

N/A

10/30/2028

2,195‌

90‌

—‌

90‌

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Receive

2.48%

Annual

N/A

03/25/2026

2,710‌

92‌

—‌

92‌

Consumer

Price

All

Urban

Non-

Seasonally

Adjusted

Index

Receive

2.47%

Annual

N/A

04/19/2031

1,190‌

37‌

—‌

37‌

Harmonised

Indices

of

Consumer

Prices

Excluding

Food

and

Energy

Receive

1.50%

Annual

N/A

06/15/2026

EUR

4,365‌

58‌

—‌

58‌

Harmonised

Indices

of

Consumer

Prices

Excluding

Food

and

Energy

Receive

1.58%

Annual

N/A

08/15/2026

4,660‌

25‌

—‌

25‌

Harmonised

Indices

of

Consumer

Prices

Excluding

Food

and

Energy

Pay

1.61%

Annual

N/A

08/15/2031

4,660‌

(42‌)

—‌

(42‌)

Harmonised

Indices

of

Consumer

Prices

Excluding

Food

and

Energy

Pay

1.89%

Annual

N/A

08/15/2051

610‌

(5‌)

—‌

(5‌)

Harmonised

Indices

of

Consumer

Prices

Excluding

Food

and

Energy

Pay

1.53%

Annual

N/A

06/15/2031

4,365‌

(97‌)

1‌

(96‌)

Harmonised

Indices

of

Consumer

Prices

Excluding

Food

and

Energy

Pay

1.45%

Annual

N/A

07/15/2026

2,285‌

(35‌)

—‌

(35‌)

Harmonised

Indices

of

Consumer

Prices

Excluding

Food

and

Energy

Receive

1.53%

Annual

N/A

07/15/2031

2,285‌

49‌

—‌

49‌

Harmonised

Indices

of

Consumer

Prices

Excluding

Food

and

Energy

Pay

1.54%

Annual

N/A

06/15/2031

2,315‌

(50‌)

—‌

(50‌)

Harmonised

Indices

of

Consumer

Prices

Excluding

Food

and

Energy

Receive

1.43%

Annual

N/A

06/15/2026

2,270‌

41‌

—‌

41‌

Harmonised

Indices

of

Consumer

Prices

Excluding

Food

and

Energy

Pay

1.46%

Annual

N/A

06/15/2031

2,270‌

(72‌)

—‌

(72‌)

Harmonised

Indices

of

Consumer

Prices

Excluding

Food

and

Energy

Pay

1.79%

Annual

N/A

07/15/2051

600‌

(38‌)

—‌

(38‌)

Harmonised

Indices

of

Consumer

Prices

Excluding

Food

and

Energy

Receive

1.48%

Annual

N/A

07/15/2026

2,305‌

31‌

—‌

31‌

Harmonised

Indices

of

Consumer

Prices

Excluding

Food

and

Energy

Pay

1.50%

Annual

N/A

07/15/2031

2,335‌

(59‌)

—‌

(59‌)

Harmonised

Indices

of

Consumer

Prices

Excluding

Food

and

Energy

Receive

1.44%

Annual

N/A

07/15/2026

2,335‌

38‌

—‌

38‌

Consolidated

Schedule

of

Investments

Diversified

Real

Asset

Fund

See

accompanying

notes.

123

Exchange

Cleared

Interest

Rate

Swaps

(continued)

Floating

Rate

Index

(Pay)/

Receive

Floating

Rate

Fixed

Rate

Payment

Frequency

Paid

by

Fund

Payment

Frequency

Received

by

Fund

Effective

Date

(a)

Maturity

Date

Notional

Amount

Unrealized

Appreciation/

(Depreciation)

Upfront

Payments/

(Receipts)

Fair

Value

Harmonised

Indices

of

Consumer

Prices

Excluding

Food

and

Energy

Pay

1.45%

Annual

N/A

03/15/2031

EUR

2,180‌

$

(105‌)

$

2‌

$

(103‌)

Harmonised

Indices

of

Consumer

Prices

Excluding

Food

and

Energy

Pay

1.54%

Annual

N/A

07/15/2031

2,305‌

(47‌)

—‌

(47‌)

Secured

Overnight

Financing

Rate

Receive

1.13%

Annual

N/A

08/31/2031

$

200‌

(3‌)

—‌

(3‌)

Secured

Overnight

Financing

Rate

Receive

1.13%

Annual

N/A

08/30/2031

390‌

(6‌)

—‌

(6‌)

Secured

Overnight

Financing

Rate

Receive

1.45%

Annual

N/A

02/15/2047

4,060‌

(68‌)

(12‌)

(80‌)

Secured

Overnight

Financing

Rate

Receive

1.09%

Annual

N/A

08/27/2031

310‌

(3‌)

—‌

(3‌)

Secured

Overnight

Financing

Rate

Pay

1.01%

Annual

N/A

08/24/2031

160‌

1‌

—‌

1‌

Secured

Overnight

Financing

Rate

Pay

1.01%

Annual

N/A

08/19/2031

290‌

1‌

—‌

1‌

Secured

Overnight

Financing

Rate

Pay

1.03%

Annual

N/A

08/19/2031

290‌

2‌

—‌

2‌

United

Kingdom

Retail

Prices

Index

Receive

3.16%

Annual

N/A

10/15/2049

GBP

2,725‌

725‌

(33‌)

692‌

United

Kingdom

Retail

Prices

Index

Pay

3.36%

Annual

N/A

10/15/2039

3,555‌

(371‌)

(5‌)

(376‌)

United

Kingdom

Retail

Prices

Index

Receive

3.38%

Annual

N/A

12/15/2030

965‌

97‌

(1‌)

96‌

United

Kingdom

Retail

Prices

Index

Pay

3.67%

Annual

N/A

06/15/2031

3,270‌

(133‌)

1‌

(132‌)

United

Kingdom

Retail

Prices

Index

Receive

3.42%

Annual

N/A

10/15/2034

3,555‌

198‌

7‌

205‌

United

Kingdom

Retail

Prices

Index

Receive

3.58%

Annual

N/A

02/15/2026

2,845‌

124‌

(3‌)

121‌

United

Kingdom

Retail

Prices

Index

Pay

3.61%

Annual

N/A

01/15/2029

1,145‌

9‌

4‌

13‌

United

Kingdom

Retail

Prices

Index

Receive

3.63%

Annual

N/A

06/15/2026

3,270‌

92‌

(1‌)

91‌

United

Kingdom

Retail

Prices

Index

Pay

3.27%

Annual

N/A

10/15/2044

2,725‌

(478‌)

9‌

(469‌)

United

Kingdom

Retail

Prices

Index

Pay

3.34%

Annual

N/A

01/15/2040

1,700‌

(221‌)

(1‌)

(222‌)

United

Kingdom

Retail

Prices

Index

Pay

3.24%

Annual

N/A

01/15/2045

1,300‌

(270‌)

—‌

(270‌)

United

Kingdom

Retail

Prices

Index

Pay

3.68%

Annual

N/A

04/15/2031

370‌

(21‌)

1‌

(20‌)

United

Kingdom

Retail

Prices

Index

Receive

3.39%

Annual

N/A

01/15/2035

1,700‌

137‌

—‌

137‌

United

Kingdom

Retail

Prices

Index

Pay

3.31%

Annual

N/A

01/15/2040

1,700‌

(243‌)

(3‌)

(246‌)

United

Kingdom

Retail

Prices

Index

Receive

3.36%

Annual

N/A

01/15/2035

1,700‌

151‌

1‌

152‌

United

Kingdom

Retail

Prices

Index

Pay

3.22%

Annual

N/A

01/15/2045

1,300‌

(284‌)

(1‌)

(285‌)

United

Kingdom

Retail

Prices

Index

Receive

3.11%

Annual

N/A

01/15/2050

1,300‌

401‌

1‌

402‌

United

Kingdom

Retail

Prices

Index

Pay

3.63%

Annual

N/A

02/15/2031

2,135‌

(135‌)

2‌

(133‌)

United

Kingdom

Retail

Prices

Index

Pay

3.75%

Annual

N/A

04/15/2031

825‌

(36‌)

1‌

(35‌)

United

Kingdom

Retail

Prices

Index

Receive

3.62%

Annual

N/A

04/15/2031

275‌

18‌

—‌

18‌

United

Kingdom

Retail

Prices

Index

Pay

3.57%

Annual

N/A

10/15/2030

2,890‌

(204‌)

9‌

(195‌)

United

Kingdom

Retail

Prices

Index

Pay

3.33%

Annual

N/A

11/15/2040

690‌

(130‌)

2‌

(128‌)

United

Kingdom

Retail

Prices

Index

Receive

3.42%

Annual

N/A

01/15/2031

800‌

82‌

(1‌)

81‌

United

Kingdom

Retail

Prices

Index

Pay

3.50%

Annual

N/A

12/15/2030

1,925‌

(156‌)

3‌

(153‌)

United

Kingdom

Retail

Prices

Index

Receive

3.13%

Annual

N/A

01/15/2050

1,300‌

380‌

—‌

380‌

United

Kingdom

Retail

Prices

Index

Pay

3.56%

Annual

N/A

03/15/2041

480‌

(43‌)

1‌

(42‌)

Total

$

749‌

$

(13‌)

$

736‌

Amounts

in

thousands.

(a)

Forward

swap.

Schedule

of

Investments

Edge

MidCap

Fund

See

accompanying

notes.

124

INVESTMENT

COMPANIES

-

2

.21

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

2

.21

%

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

(a),(b),(c)

12,944,287‌

$

12,944‌

TOTAL

INVESTMENT

COMPANIES

$

12,944‌

COMMON

STOCKS

-

97

.75

%

Shares

Held

Value

(000's)

Advertising

-

2

.31

%

Interpublic

Group

of

Cos

Inc/The

363,191‌

$

13,522‌

Automobile

Parts

&

Equipment

-

0

.98

%

Autoliv

Inc

64,811‌

5,729‌

Banks

-

2

.52

%

Bank

OZK

157,189‌

6,670‌

Cullen/Frost

Bankers

Inc

70,815‌

8,088‌

$

14,758‌

Building

Materials

-

2

.56

%

Lennox

International

Inc

44,625‌

14,957‌

Chemicals

-

2

.05

%

FMC

Corp

128,199‌

12,003‌

Commercial

Services

-

3

.68

%

Morningstar

Inc

45,401‌

12,167‌

PROG

Holdings

Inc

197,711‌

9,356‌

$

21,523‌

Computers

-

1

.09

%

Amdocs

Ltd

83,054‌

6,398‌

Consumer

Products

-

3

.45

%

Avery

Dennison

Corp

89,744‌

20,226‌

Electric

-

2

.65

%

Alliant

Energy

Corp

255,030‌

15,503‌

Electrical

Components

&

Equipment

-

5

.33

%

Energizer

Holdings

Inc

330,996‌

13,021‌

Littelfuse

Inc

63,585‌

18,147‌

$

31,168‌

Electronics

-

1

.53

%

Arrow

Electronics

Inc

(b)

74,055‌

8,977‌

Gas

-

0

.23

%

ONE

Gas

Inc

18,990‌

1,364‌

Hand

&

Machine

Tools

-

6

.22

%

Lincoln

Electric

Holdings

Inc

153,979‌

21,497‌

Snap-on

Inc

66,235‌

14,900‌

$

36,397‌

Healthcare

-

Products

-

8

.35

%

Bio-Techne

Corp

18,433‌

9,201‌

STERIS

PLC

92,966‌

19,989‌

Teleflex

Inc

49,673‌

19,644‌

$

48,834‌

Healthcare

-

Services

-

3

.38

%

Universal

Health

Services

Inc

126,784‌

19,748‌

Insurance

-

4

.27

%

Fidelity

National

Financial

Inc

306,012‌

14,944‌

Markel

Corp

(b)

7,887‌

10,018‌

$

24,962‌

Internet

-

2

.24

%

Rightmove

PLC

1,356,276‌

13,085‌

Leisure

Products

&

Services

-

6

.68

%

Brunswick

Corp/DE

135,973‌

13,172‌

YETI

Holdings

Inc

(b)

260,653‌

25,893‌

$

39,065‌

Machinery

-

Diversified

-

2

.56

%

Nordson

Corp

62,746‌

14,971‌

Media

-

0

.95

%

Cable

One

Inc

2,641‌

5,545‌

Oil

&

Gas

-

3

.00

%

Cimarex

Energy

Co

152,176‌

9,772‌

Helmerich

&

Payne

Inc

189,956‌

5,114‌

HollyFrontier

Corp

81,645‌

2,640‌

$

17,526‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

REITs

-

7

.47

%

Alexandria

Real

Estate

Equities

Inc

81,384‌

$

16,795‌

CyrusOne

Inc

213,955‌

16,470‌

STORE

Capital

Corp

162,743‌

5,870‌

Terreno

Realty

Corp

68,455‌

4,573‌

$

43,708‌

Retail

-

2

.64

%

Tractor

Supply

Co

79,507‌

15,444‌

Savings

&

Loans

-

1

.98

%

Washington

Federal

Inc

347,271‌

11,564‌

Semiconductors

-

4

.26

%

MKS

Instruments

Inc

30,332‌

4,464‌

Teradyne

Inc

168,421‌

20,453‌

$

24,917‌

Software

-

8

.36

%

Black

Knight

Inc

(b)

224,361‌

16,978‌

Fair

Isaac

Corp

(b)

43,436‌

19,969‌

Tyler

Technologies

Inc

(b)

24,641‌

11,968‌

$

48,915‌

Toys,

Games

&

Hobbies

-

0

.84

%

Hasbro

Inc

50,210‌

4,936‌

Transportation

-

4

.22

%

Expeditors

International

of

Washington

Inc

197,731‌

24,646‌

Water

-

1

.95

%

Essential

Utilities

Inc

229,981‌

11,414‌

TOTAL

COMMON

STOCKS

$

571,805‌

Total

Investments

$

584,749‌

Other

Assets

and

Liabilities

- 0.04%

249‌

TOTAL

NET

ASSETS

-

100.00%

$

584,998‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Non-income

producing

security

(c)

Current

yield

shown

is

as

of

period

end.

Portfolio

Summary (unaudited)

Sector

Percent

Industrial

22

.42‌

%

Consumer,

Non-cyclical

18

.86‌

%

Financial

16

.24‌

%

Technology

13

.71‌

%

Consumer,

Cyclical

11

.14‌

%

Communications

5

.50‌

%

Utilities

4

.83‌

%

Energy

3

.00‌

%

Money

Market

Funds

2

.21‌

%

Basic

Materials

2

.05‌

%

Other

Assets

and

Liabilities

0

.04‌

%

TOTAL

NET

ASSETS

100.00%

Schedule

of

Investments

Edge

MidCap

Fund

See

accompanying

notes.

125

Affiliated

Securities

Purchases

Sales

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

$

26,003‌

$

151,735‌

$

164,794‌

$

12,944‌

$

26,003‌

$

151,735‌

$

164,794‌

$

12,944‌

Income

Realized

Gain/Loss

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

Loss

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

126

INVESTMENT

COMPANIES

-

18.27%

Shares

Held

Value

(000's)

Closed-

End

Fund

s

-

0.05%

BlackRock

Floating

Rate

Income

Strategies

Fund

Inc

6,525‌

$

87‌

Invesco

Municipal

Opportunity

Trust

3,615‌

51‌

Invesco

Senior

Income

Trust

20,396‌

89‌

Nuveen

AMT-Free

Municipal

Credit

Income

Fund

2,946‌

54‌

Nuveen

California

Quality

Municipal

Income

Fund

3,139‌

50‌

$

331‌

Exchange-Traded

Funds

-

0.08%

iShares

Russell

1000

Growth

ETF

987‌

287‌

iShares

Russell

2000

Growth

ETF

370‌

113‌

iShares

Russell

2000

Value

ETF

271‌

45‌

$

445‌

Money

Market

Funds

-

18.14%

Morgan

Stanley

Institutional

Liquidity

Funds

-

Government

Portfolio

-

Institutional

Class

0.03%

(a),(b),(c)

8,877,141‌

8,877‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

(b),(d),(e)

93,358,534‌

93,359‌

$

102,236‌

TOTAL

INVESTMENT

COMPANIES

$

103,012‌

COMMON

STOCKS

-

44.57%

Shares

Held

Value

(000's)

Advertising

-

0.18%

Interpublic

Group

of

Cos

Inc/The

(c),(f)

17,221‌

$

642‌

Omnicom

Group

Inc

(c)

2,487‌

181‌

Quotient

Technology

Inc

(e)

7,721‌

56‌

WPP

PLC

10,036‌

136‌

$

1,015‌

Aerospace

&

Defense

-

0.51%

Aerojet

Rocketdyne

Holdings

Inc

(c)

8,901‌

370‌

Airbus

SE

(e)

426‌

58‌

BAE

Systems

PLC

48,851‌

382‌

General

Dynamics

Corp

(f)

2,152‌

431‌

HEICO

Corp

-

Class

A

(c)

954‌

109‌

Howmet

Aerospace

Inc

(f)

9,814‌

312‌

L3Harris

Technologies

Inc

670‌

156‌

Lockheed

Martin

Corp

(c)

1,268‌

455‌

Northrop

Grumman

Corp

820‌

302‌

Raytheon

Technologies

Corp

1,778‌

151‌

Thales

SA

1,291‌

131‌

$

2,857‌

Agriculture

-

0.38%

Altria

Group

Inc

(f)

5,615‌

282‌

Archer-Daniels-Midland

Co

(f)

2,634‌

158‌

Japan

Tobacco

Inc

17,000‌

330‌

Philip

Morris

International

Inc

(c),(f)

9,928‌

1,022‌

Swedish

Match

AB

34,626‌

320‌

$

2,112‌

Apparel

-

0.48%

Carter's

Inc

1,863‌

191‌

Crocs

Inc

(e)

441‌

63‌

Dr.

Martens

Plc

(e)

8,327‌

49‌

Gildan

Activewear

Inc

8,000‌

308‌

Hanesbrands

Inc

1,686‌

31‌

Kontoor

Brands

Inc

1,345‌

73‌

LVMH

Moet

Hennessy

Louis

Vuitton

SE

360‌

266‌

NIKE

Inc

(c),(f)

8,525‌

1,405‌

PVH

Corp

(e),(f)

117‌

12‌

Ralph

Lauren

Corp

1,164‌

135‌

Steven

Madden

Ltd

2,775‌

112‌

Tapestry

Inc

839‌

34‌

$

2,679‌

Automobile

Manufacturers

-

0.69%

Bayerische

Motoren

Werke

AG

4,125‌

392‌

Cummins

Inc

169‌

40‌

Daimler

AG

2,803‌

236‌

Ferrari

NV

1,758‌

381‌

Ford

Motor

Co

(e),(f)

20,998‌

274‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Automobile

Manufacturers

(continued)

General

Motors

Co

(e),(f)

4,476‌

$

219‌

Isuzu

Motors

Ltd

15,300‌

193‌

PACCAR

Inc

(c)

4,422‌

362‌

REV

Group

Inc

4,480‌

73‌

Tesla

Inc

(c),(e)

636‌

468‌

Toyota

Motor

Corp

11,100‌

967‌

Volkswagen

AG

825‌

276‌

$

3,881‌

Automobile

Parts

&

Equipment

-

0.22%

Aisin

Corp

8,200‌

313‌

Aptiv

PLC

(e)

492‌

75‌

Autoliv

Inc

(c)

1,697‌

150‌

Continental

AG

(e)

466‌

63‌

Dana

Inc

3,205‌

74‌

Faurecia

SE

1,824‌

88‌

Gentherm

Inc

(e)

1,016‌

87‌

Magna

International

Inc

2,900‌

229‌

NGK

Insulators

Ltd

8,300‌

138‌

$

1,217‌

Banks

-

2.08%

Allegiance

Bancshares

Inc

1,240‌

46‌

Ameris

Bancorp

1,084‌

53‌

Bank

of

America

Corp

5,226‌

218‌

Bank

of

East

Asia

Ltd/The

66,400‌

111‌

Bank

of

Nova

Scotia/The

3,780‌

234‌

Bank

OZK

2,001‌

85‌

Barclays

PLC

39,964‌

101‌

Cadence

BanCorp

4,002‌

86‌

Citigroup

Inc

557‌

40‌

Citizens

Financial

Group

Inc

(c)

10,267‌

450‌

Concordia

Financial

Group

Ltd

41,500‌

161‌

DBS

Group

Holdings

Ltd

21,600‌

479‌

DNB

Bank

ASA

(e)

32,368‌

683‌

Erste

Group

Bank

AG

7,694‌

307‌

Fifth

Third

Bancorp

(f)

8,206‌

319‌

FinecoBank

Banca

Fineco

SpA

5,270‌

97‌

First

Citizens

BancShares

Inc/NC

137‌

123‌

First

Hawaiian

Inc

2,309‌

64‌

First

Interstate

BancSystem

Inc

1,795‌

79‌

First

Midwest

Bancorp

Inc/IL

2,613‌

49‌

First

Republic

Bank/CA

(f)

2,689‌

535‌

FNB

Corp/PA

5,543‌

65‌

Goldman

Sachs

Group

Inc/The

174‌

72‌

Great

Western

Bancorp

Inc

2,385‌

74‌

Home

BancShares

Inc/AR

3,292‌

73‌

HSBC

Holdings

PLC

40,081‌

212‌

ING

Groep

NV

30,797‌

425‌

Intesa

Sanpaolo

SpA

37,486‌

106‌

JPMorgan

Chase

&

Co

(c)

3,623‌

579‌

KeyCorp

(c)

14,628‌

297‌

M&T

Bank

Corp

(c)

4,692‌

657‌

Morgan

Stanley

389‌

41‌

National

Bank

of

Canada

1,800‌

143‌

Nordea

Bank

Abp

(e)

43,646‌

513‌

OFG

Bancorp

3,296‌

78‌

Oversea-Chinese

Banking

Corp

Ltd

59,600‌

504‌

PNC

Financial

Services

Group

Inc/The

63‌

12‌

Raiffeisen

Bank

International

AG

11,089‌

266‌

Regions

Financial

Corp

(c)

14,658‌

299‌

Sandy

Spring

Bancorp

Inc

1,965‌

86‌

Standard

Chartered

PLC

15,024‌

94‌

SVB

Financial

Group

(e),(f)

736‌

412‌

Toronto-Dominion

Bank/The

3,600‌

234‌

Truist

Financial

Corp

(c)

3,291‌

187‌

UBS

Group

AG

10,728‌

179‌

Umpqua

Holdings

Corp

4,152‌

81‌

United

Community

Banks

Inc/GA

1,884‌

57‌

US

Bancorp

(c)

14,169‌

813‌

Veritex

Holdings

Inc

1,940‌

70‌

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

127

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Banks

(continued)

Wells

Fargo

&

Co

(c)

13,431‌

$

614‌

Western

Alliance

Bancorp

529‌

52‌

Zions

Bancorp

NA

1,861‌

108‌

$

11,723‌

Beverages

-

0.49%

Anheuser-Busch

InBev

SA/NV

1,913‌

117‌

Coca-Cola

Co/The

(f)

14,868‌

838‌

Coca-Cola

HBC

AG

(e)

13,990‌

506‌

Constellation

Brands

Inc

742‌

157‌

Diageo

PLC

5,341‌

257‌

JDE

Peet's

NV

2,689‌

93‌

Keurig

Dr

Pepper

Inc

3,471‌

124‌

Kirin

Holdings

Co

Ltd

9,900‌

179‌

Molson

Coors

Beverage

Co

(f)

2,194‌

104‌

PepsiCo

Inc

2,403‌

375‌

$

2,750‌

Biotechnology

-

0.54%

Abcam

PLC

(e)

9,208‌

195‌

Allakos

Inc

(e)

218‌

19‌

ALX

Oncology

Holdings

Inc

(e)

673‌

47‌

Amicus

Therapeutics

Inc

(e)

5,211‌

59‌

Apellis

Pharmaceuticals

Inc

(e)

1,751‌

115‌

Arena

Pharmaceuticals

Inc

(e)

1,261‌

67‌

Ascendis

Pharma

A/S

ADR

(e)

260‌

41‌

Biogen

Inc

(e)

118‌

40‌

Celldex

Therapeutics

Inc

(e)

1,594‌

84‌

Exact

Sciences

Corp

(e)

589‌

61‌

Gilead

Sciences

Inc

(c)

8,625‌

627‌

Illumina

Inc

(c),(e),(f)

810‌

370‌

Incyte

Corp

(e)

2‌

—‌

Kodiak

Sciences

Inc

(e)

433‌

41‌

Kymera

Therapeutics

Inc

(e)

1,091‌

68‌

Moderna

Inc

(e)

320‌

120‌

NeoGenomics

Inc

(e)

1,267‌

62‌

Regeneron

Pharmaceuticals

Inc

(e),(f)

228‌

154‌

REVOLUTION

Medicines

Inc

(e)

753‌

22‌

Rocket

Pharmaceuticals

Inc

(e)

375‌

13‌

Royalty

Pharma

PLC

(c)

2,768‌

107‌

Sage

Therapeutics

Inc

(e)

886‌

41‌

Seagen

Inc

(e)

1,329‌

223‌

TCR2

Therapeutics

Inc

(e)

1,892‌

32‌

Translate

Bio

Inc

(e)

4,005‌

150‌

Trillium

Therapeutics

Inc

(e)

7,881‌

136‌

Turning

Point

Therapeutics

Inc

(e)

430‌

33‌

Vertex

Pharmaceuticals

Inc

(e)

265‌

53‌

Y-mAbs

Therapeutics

Inc

(e)

966‌

30‌

Zymeworks

Inc

(e)

1,600‌

53‌

$

3,063‌

Building

Materials

-

0.69%

Apogee

Enterprises

Inc

1,336‌

58‌

Boise

Cascade

Co

1,595‌

92‌

Cemex

SAB

de

CV

ADR

(e)

25,440‌

209‌

Cie

de

Saint-Gobain

5,631‌

408‌

CRH

PLC

1,964‌

104‌

CRH

PLC

793‌

42‌

Daikin

Industries

Ltd

800‌

200‌

Geberit

AG

522‌

436‌

Gibraltar

Industries

Inc

(e)

816‌

61‌

Holcim

Ltd

(e)

2,405‌

137‌

James

Hardie

Industries

PLC

8,232‌

317‌

Johnson

Controls

International

plc

8,143‌

609‌

Lennox

International

Inc

707‌

237‌

Marshalls

PLC

12,610‌

140‌

Masco

Corp

(c)

2,999‌

182‌

PGT

Innovations

Inc

(e)

2,351‌

50‌

ROCKWOOL

International

A/S

154‌

82‌

TOTO

Ltd

5,700‌

310‌

Vulcan

Materials

Co

(c)

501‌

93‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Building

Materials

(continued)

Wienerberger

AG

3,138‌

$

123‌

$

3,890‌

Chemicals

-

1.18%

Atotech

Ltd

(e)

10,748‌

257‌

BASF

SE

3,622‌

280‌

Borregaard

ASA

3,404‌

89‌

Brenntag

SE

1,384‌

140‌

Celanese

Corp

555‌

88‌

CF

Industries

Holdings

Inc

(c),(f)

9,721‌

441‌

Codexis

Inc

(e)

3,999‌

108‌

Dow

Inc

352‌

22‌

DuPont

de

Nemours

Inc

1,731‌

129‌

Eastman

Chemical

Co

(f)

304‌

34‌

Ecolab

Inc

843‌

190‌

Ferro

Corp

(e)

6,505‌

135‌

FMC

Corp

710‌

67‌

Hexion

Holdings

Corp

(e)

17,114‌

368‌

IMCD

NV

513‌

101‌

Linde

PLC

3,561‌

1,120‌

LyondellBasell

Industries

NV

(c)

3,107‌

312‌

Minerals

Technologies

Inc

1,000‌

79‌

Mosaic

Co/The

4,317‌

139‌

Nissan

Chemical

Corp

3,500‌

196‌

Novozymes

A/S

2,854‌

231‌

Sherwin-Williams

Co/The

(f)

2,011‌

610‌

Shin-Etsu

Chemical

Co

Ltd

2,400‌

396‌

Sumitomo

Chemical

Co

Ltd

43,400‌

220‌

Victrex

PLC

2,490‌

91‌

W

R

Grace

&

Co

4,503‌

314‌

Yara

International

ASA

9,568‌

481‌

$

6,638‌

Commercial

Services

-

1.68%

2U

Inc

(e)

1,379‌

51‌

Adtalem

Global

Education

Inc

(e)

2,021‌

75‌

AMERCO

(c)

481‌

318‌

AMN

Healthcare

Services

Inc

(e)

859‌

98‌

Automatic

Data

Processing

Inc

(f)

2,490‌

521‌

Booz

Allen

Hamilton

Holding

Corp

(c)

3,314‌

271‌

Brambles

Ltd

26,343‌

233‌

BrightView

Holdings

Inc

(e)

4,018‌

62‌

Bureau

Veritas

SA

4,212‌

140‌

Chegg

Inc

(e)

2,011‌

167‌

Cintas

Corp

(c),(f)

1,155‌

457‌

CoreCivic

Inc

(e)

4,958‌

48‌

CoStar

Group

Inc

(e)

1,623‌

138‌

Cross

Country

Healthcare

Inc

(e)

2,640‌

57‌

Deluxe

Corp

2,257‌

87‌

Elis

SA

(e)

5,149‌

91‌

Equifax

Inc

(c)

539‌

147‌

Escrow

Altegrity

Inc

NPV

(e)

106,383‌

758‌

FleetCor

Technologies

Inc

(e)

317‌

83‌

Gartner

Inc

(c),(e)

2,117‌

654‌

H&R

Block

Inc

3,527‌

90‌

Hypoport

SE

(e)

101‌

70‌

ICF

International

Inc

923‌

86‌

IHS

Markit

Ltd

(c)

13,520‌

1,631‌

Insperity

Inc

710‌

78‌

Kforce

Inc

1,355‌

79‌

LiveRamp

Holdings

Inc

(e)

1,375‌

67‌

Loomis

AB

5,934‌

184‌

MarketAxess

Holdings

Inc

(c)

209‌

99‌

Medifast

Inc

316‌

72‌

Moody's

Corp

536‌

204‌

Multiplan

Corp

(e)

15,128‌

91‌

Nielsen

Holdings

PLC

1,489‌

32‌

PayPal

Holdings

Inc

(e)

1,087‌

314‌

QinetiQ

Group

PLC

21,921‌

104‌

Randstad

NV

2,142‌

158‌

Recruit

Holdings

Co

Ltd

7,200‌

424‌

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

128

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Commercial

Services

(continued)

Robert

Half

International

Inc

(c),(f)

3,726‌

$

386‌

Rollins

Inc

(c)

9,228‌

359‌

S&P

Global

Inc

(c)

785‌

348‌

Square

Inc

(e)

589‌

158‌

$

9,490‌

Computers

-

2.10%

Accenture

PLC

-

Class

A

(c)

4,179‌

1,407‌

Apple

Inc

(c),(f)

33,529‌

5,091‌

CGI

Inc

(e)

1,300‌

116‌

Cognizant

Technology

Solutions

Corp

(c)

6,257‌

477‌

Dell

Technologies

Inc

(c),(e)

5,753‌

561‌

DXC

Technology

Co

(e)

436‌

16‌

Fortinet

Inc

(c),(e)

436‌

137‌

Genpact

Ltd

1,139‌

59‌

HP

Inc

(c),(f)

37,919‌

1,128‌

International

Business

Machines

Corp

(f)

3,907‌

548‌

Leidos

Holdings

Inc

2,085‌

205‌

Lumentum

Holdings

Inc

(e)

812‌

70‌

NetApp

Inc

(f)

4,998‌

445‌

Nomura

Research

Institute

Ltd

3,200‌

120‌

PAR

Technology

Corp

(e)

1,149‌

78‌

Rapid7

Inc

(e)

990‌

120‌

Science

Applications

International

Corp

870‌

73‌

SCSK

Corp

5,300‌

335‌

Softcat

PLC

2,864‌

83‌

Varonis

Systems

Inc

(e)

3,664‌

253‌

Western

Digital

Corp

(c),(e)

4,731‌

299‌

Zscaler

Inc

(c),(e)

707‌

197‌

$

11,818‌

Consumer

Products

-

0.01%

Avery

Dennison

Corp

93‌

21‌

Kimberly-Clark

Corp

294‌

41‌

$

62‌

Cosmetics

&

Personal

Care

-

0.20%

Colgate-Palmolive

Co

(c)

7,520‌

587‌

Edgewell

Personal

Care

Co

2,397‌

101‌

Estee

Lauder

Cos

Inc/The

(f)

368‌

126‌

Procter

&

Gamble

Co/The

2,337‌

332‌

$

1,146‌

Distribution

&

Wholesale

-

0.47%

Copart

Inc

(e)

2,199‌

317‌

Fastenal

Co

1,857‌

104‌

LKQ

Corp

(c),(e),(f)

14,630‌

771‌

MARR

SpA

3,365‌

81‌

Mitsui

&

Co

Ltd

5,700‌

126‌

Pool

Corp

(c)

1,024‌

506‌

Sumitomo

Corp

25,500‌

359‌

Toyota

Tsusho

Corp

3,800‌

168‌

WW

Grainger

Inc

(c)

554‌

241‌

$

2,673‌

Diversified

Financial

Services

-

1.81%

4L

Technologies

(e),(g)

24,306‌

2‌

Ally

Financial

Inc

(c)

4,705‌

249‌

American

Express

Co

1,543‌

256‌

Apollo

Global

Management

Inc

(c)

4,007‌

240‌

Artisan

Partners

Asset

Management

Inc

801‌

42‌

ASX

Ltd

5,504‌

352‌

Banca

Generali

SpA

(e)

3,117‌

139‌

BlackRock

Inc

(f)

490‌

462‌

Capital

One

Financial

Corp

(c)

1,809‌

300‌

Cboe

Global

Markets

Inc

(c)

4,636‌

585‌

Charles

Schwab

Corp/The

(c)

9,058‌

660‌

Coinbase

Global

Inc

(e)

185‌

48‌

Credit

Acceptance

Corp

(e)

457‌

265‌

Discover

Financial

Services

(f)

1,391‌

178‌

ECN

Capital

Corp

10,720‌

87‌

Element

Comm

Aviation

(e),(g),(h)

280‌

349‌

Enova

International

Inc

(e)

2,466‌

81‌

Euronext

NV

(i)

1,180‌

137‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Diversified

Financial

Services

(continued)

Federal

Agricultural

Mortgage

Corp

1,287‌

$

126‌

Franklin

Resources

Inc

(c)

9,196‌

298‌

Greenhill

&

Co

Inc

4,284‌

63‌

Hamilton

Lane

Inc

805‌

69‌

Hargreaves

Lansdown

PLC

4,754‌

99‌

Intercontinental

Exchange

Inc

(f)

750‌

90‌

Invesco

Ltd

23,588‌

597‌

Mastercard

Inc

(f)

2,019‌

698‌

Moelis

&

Co

1,481‌

92‌

Nasdaq

Inc

(f)

2,455‌

481‌

Navient

Corp

4,916‌

114‌

OneMain

Holdings

Inc

648‌

37‌

PRA

Group

Inc

(e)

3,594‌

151‌

Raymond

James

Financial

Inc

(c)

2,151‌

302‌

Singapore

Exchange

Ltd

13,500‌

99‌

Synchrony

Financial

(c)

8,518‌

424‌

T

Rowe

Price

Group

Inc

(f)

2,833‌

634‌

TMX

Group

Ltd

1,200‌

132‌

Tradeweb

Markets

Inc

(c)

3,372‌

294‌

Visa

Inc

(f)

3,208‌

735‌

VZ

Holding

AG

844‌

80‌

Western

Union

Co/The

(c)

8,337‌

180‌

$

10,227‌

Electric

-

0.74%

AES

Corp/The

254‌

6‌

Avangrid

Inc

790‌

43‌

Brookfield

Renewable

Corp

2,100‌

92‌

Consolidated

Edison

Inc

459‌

35‌

Dominion

Energy

Inc

15‌

1‌

Duke

Energy

Corp

835‌

87‌

Endesa

SA

14,733‌

354‌

Exelon

Corp

4,789‌

235‌

Iberdrola

SA

6,907‌

86‌

NRG

Energy

Inc

(f)

19,609‌

896‌

Pinnacle

West

Capital

Corp

2,963‌

228‌

PNM

Resources

Inc

5,091‌

252‌

Portland

General

Electric

Co

1,592‌

82‌

Power

Assets

Holdings

Ltd

37,500‌

235‌

PPL

Corp

(f)

20,167‌

592‌

Public

Service

Enterprise

Group

Inc

(f)

7,831‌

501‌

Southern

Co/The

584‌

38‌

Terna

-

Rete

Elettrica

Nazionale

29,242‌

231‌

Vistra

Corp

(c)

8,809‌

168‌

$

4,162‌

Electrical

Components

&

Equipment

-

0.38%

AMETEK

Inc

(c),(f)

1,997‌

271‌

Casio

Computer

Co

Ltd

11,000‌

170‌

Emerson

Electric

Co

(c),(f)

6,683‌

705‌

Energizer

Holdings

Inc

1,589‌

63‌

EnerSys

1,537‌

130‌

Insteel

Industries

Inc

1,592‌

59‌

Legrand

SA

1,864‌

214‌

Novanta

Inc

(e)

285‌

44‌

Schneider

Electric

SE

1,877‌

335‌

Signify

NV

(i)

1,681‌

94‌

Universal

Display

Corp

399‌

83‌

$

2,168‌

Electronics

-

0.79%

Allegion

plc

(c)

2,969‌

427‌

Coherent

Inc

(c),(e)

4,059‌

1,026‌

DiscoverIE

Group

PLC

9,632‌

133‌

Electrocomponents

PLC

9,256‌

135‌

FARO

Technologies

Inc

(e)

1,022‌

70‌

Fortive

Corp

1,727‌

128‌

Garmin

Ltd

1,081‌

189‌

Hirose

Electric

Co

Ltd

700‌

116‌

Hoya

Corp

1,000‌

161‌

II-VI

Inc

(e)

979‌

62‌

Keysight

Technologies

Inc

(e)

99‌

18‌

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

129

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Electronics

(continued)

Knowles

Corp

(e)

3,836‌

$

77‌

LEM

Holding

SA

39‌

100‌

nVent

Electric

PLC

2,432‌

84‌

Shimadzu

Corp

7,800‌

349‌

Spectris

PLC

1,527‌

83‌

TE

Connectivity

Ltd

2,455‌

369‌

Waters

Corp

(c),(e),(f)

2,286‌

947‌

$

4,474‌

Energy

-

Alternate

Sources

-

0.04%

Plug

Power

Inc

(c),(e)

3,773‌

98‌

SolarEdge

Technologies

Inc

(e)

373‌

108‌

$

206‌

Engineering

&

Construction

-

0.12%

Badger

Infrastructure

Solutions

Ltd

2,684‌

73‌

Fluor

Corp

(e)

2,776‌

46‌

Jacobs

Engineering

Group

Inc

(c)

2,895‌

391‌

Singapore

Technologies

Engineering

Ltd

67,500‌

189‌

$

699‌

Entertainment

-

0.16%

Aristocrat

Leisure

Ltd

5,763‌

191‌

Cie

des

Alpes

(e)

3,368‌

54‌

CTS

Eventim

AG

&

Co

KGaA

(e)

947‌

61‌

Deluxe

Entertainment

(e),(g)

67,049‌

—‌

DraftKings

Inc

(e)

3,410‌

202‌

IMAX

Corp

(e)

3,675‌

58‌

Penn

National

Gaming

Inc

(e)

3,834‌

311‌

$

877‌

Environmental

Control

-

0.16%

GVS

SpA

(i)

3,462‌

66‌

Pentair

PLC

3,411‌

263‌

Republic

Services

Inc

(f)

2,992‌

372‌

US

Ecology

Inc

(e)

2,154‌

77‌

Waste

Management

Inc

749‌

116‌

$

894‌

Food

-

0.67%

Calavo

Growers

Inc

796‌

37‌

Campbell

Soup

Co

62‌

3‌

Conagra

Brands

Inc

32‌

1‌

Cranswick

PLC

2,313‌

126‌

Empire

Co

Ltd

4,600‌

149‌

General

Mills

Inc

82‌

5‌

HelloFresh

SE

(e)

2,207‌

238‌

Hershey

Co/The

(c)

3,850‌

684‌

Hostess

Brands

Inc

(e)

5,311‌

85‌

J

M

Smucker

Co/The

(f)

2,485‌

307‌

Kellogg

Co

(c)

3,256‌

206‌

Kesko

Oyj

5,768‌

239‌

Koninklijke

Ahold

Delhaize

NV

5,584‌

188‌

Kraft

Heinz

Co/The

877‌

32‌

Lamb

Weston

Holdings

Inc

(c)

2,201‌

143‌

Mondelez

International

Inc

(f)

6,250‌

388‌

Nestle

SA

2,238‌

283‌

Sanderson

Farms

Inc

229‌

45‌

Sysco

Corp

(c)

2,766‌

220‌

Tate

&

Lyle

PLC

8,956‌

87‌

Tyson

Foods

Inc

1,681‌

132‌

United

Natural

Foods

Inc

(e)

2,200‌

81‌

Viscofan

SA

995‌

70‌

$

3,749‌

Food

Service

-

0.05%

Compass

Group

PLC

(e)

10,120‌

209‌

Elior

Group

SA

(e),(i)

11,440‌

80‌

$

289‌

Forest

Products

&

Paper

-

0.26%

Domtar

Corp

(e)

2,374‌

130‌

International

Paper

Co

(f)

6,037‌

363‌

Mondi

PLC

5,078‌

140‌

Schweitzer-Mauduit

International

Inc

2,104‌

81‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Forest

Products

&

Paper

(continued)

Smurfit

Kappa

Group

PLC

3,860‌

$

221‌

UPM-Kymmene

Oyj

9,176‌

374‌

West

Fraser

Timber

Co

Ltd

2,000‌

154‌

$

1,463‌

Gas

-

0.17%

AltaGas

Ltd

12,100‌

242‌

New

Jersey

Resources

Corp

2,170‌

81‌

South

Jersey

Industries

Inc

3,345‌

83‌

Tokyo

Gas

Co

Ltd

11,900‌

229‌

UGI

Corp

(c)

6,864‌

318‌

$

953‌

Hand

&

Machine

Tools

-

0.27%

Kennametal

Inc

2,478‌

92‌

Makita

Corp

4,300‌

247‌

Schindler

Holding

AG

-

PC

1,426‌

461‌

Snap-on

Inc

(f)

2,157‌

485‌

Stanley

Black

&

Decker

Inc

158‌

31‌

Techtronic

Industries

Co

Ltd

10,000‌

221‌

$

1,537‌

Healthcare

-

Products

-

1.39%

Abbott

Laboratories

(f)

1,208‌

153‌

ABIOMED

Inc

(e)

353‌

129‌

Align

Technology

Inc

(c),(e),(f)

987‌

700‌

Avanos

Medical

Inc

(e)

1,612‌

53‌

Avantor

Inc

(c),(e)

4,576‌

180‌

Baxter

International

Inc

2,361‌

180‌

Boston

Scientific

Corp

(e)

2,473‌

111‌

Cellavision

AB

1,290‌

69‌

Coloplast

A/S

2,689‌

466‌

Danaher

Corp

(f)

1,898‌

615‌

DENTSPLY

SIRONA

Inc

(c)

4,353‌

269‌

DiaSorin

SpA

2,110‌

481‌

Fisher

&

Paykel

Healthcare

Corp

Ltd

8,697‌

203‌

Globus

Medical

Inc

(e)

733‌

60‌

Hill-Rom

Holdings

Inc

887‌

129‌

Hologic

Inc

(e),(f)

2,664‌

211‌

Insulet

Corp

(e)

513‌

153‌

Integra

LifeSciences

Holdings

Corp

(e)

1,084‌

82‌

Intuitive

Surgical

Inc

(e)

366‌

386‌

Koninklijke

Philips

NV

2,850‌

131‌

Lantheus

Holdings

Inc

(e)

3,608‌

95‌

Medtronic

PLC

7,638‌

1,019‌

NuVasive

Inc

(e)

1,208‌

75‌

Omnicell

Inc

(e)

459‌

71‌

Orthofix

Medical

Inc

(e)

2,332‌

99‌

PerkinElmer

Inc

(f)

2,520‌

466‌

ResMed

Inc

(c)

590‌

171‌

Sartorius

Stedim

Biotech

360‌

218‌

SI-BONE

Inc

(e)

2,591‌

63‌

Smith

&

Nephew

PLC

7,151‌

137‌

Sonova

Holding

AG

1,144‌

441‌

Stryker

Corp

(f)

584‌

162‌

Thermo

Fisher

Scientific

Inc

74‌

41‌

$

7,819‌

Healthcare

-

Services

-

1.04%

Accolade

Inc

(e)

1,437‌

68‌

Anthem

Inc

(c)

472‌

178‌

Centene

Corp

(c),(e)

3,747‌

236‌

HCA

Healthcare

Inc

(c),(f)

3,496‌

885‌

Humana

Inc

(c)

992‌

402‌

IQVIA

Holdings

Inc

(c),(e)

736‌

191‌

Laboratory

Corp

of

America

Holdings

(e),(f)

1,353‌

410‌

LHC

Group

Inc

(e)

336‌

63‌

Molina

Healthcare

Inc

(c),(e)

1,415‌

380‌

Oak

Street

Health

Inc

(e)

2,272‌

106‌

Orpea

SA

603‌

76‌

PPD

Inc

(c),(e)

20,380‌

944‌

Quest

Diagnostics

Inc

(c)

1,492‌

228‌

Sonic

Healthcare

Ltd

10,339‌

327‌

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

130

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Healthcare

-

Services

(continued)

UnitedHealth

Group

Inc

(f)

2,596‌

$

1,081‌

Universal

Health

Services

Inc

(c)

1,819‌

283‌

$

5,858‌

Holding

Companies

-

Diversified

-

0.85%

Accelerate

Acquisition

Corp

(e)

7,521‌

73‌

ACE

Convergence

Acquisition

Corp

(e)

6,592‌

65‌

Altimeter

Growth

Corp

2

(e)

382‌

4‌

Ares

Acquisition

Corp

(e)

8,583‌

85‌

Arrowroot

Acquisition

Corp

(e)

6,980‌

67‌

Avanti

Acquisition

Corp

(e)

13,402‌

131‌

Bright

Lights

Acquisition

Corp

(e)

1,121‌

11‌

Burgundy

Technology

Acquisition

Corp

(e)

5,832‌

58‌

Capstar

Special

Purpose

Acquisition

Corp

(e)

5,141‌

51‌

CC

Neuberger

Principal

Holdings

II

(e)

19,447‌

190‌

CF

Acquisition

Corp

IV

(e)

6,470‌

63‌

CHP

Merger

Corp

(e)

5,511‌

55‌

CK

Hutchison

Holdings

Ltd

50,500‌

368‌

CM

Life

Sciences

III

Inc

(e)

4,188‌

41‌

Cohn

Robbins

Holdings

Corp

(e)

8,462‌

83‌

Conx

Corp

(e)

17,967‌

175‌

Decarbonization

Plus

Acquisition

Corp

III

(e)

913‌

9‌

Deep

Lake

Capital

Acquisition

Corp

(e)

9,576‌

93‌

DFP

Healthcare

Acquisitions

Corp

(e)

9,325‌

93‌

Dragoneer

Growth

Opportunities

Corp

II

(e)

3,296‌

33‌

E.Merge

Technology

Acquisition

Corp

(e)

5,629‌

55‌

Equity

Distribution

Acquisition

Corp

(e)

15,385‌

150‌

Fortress

Capital

Acquisition

Corp

(e)

9,794‌

95‌

FTAC

Athena

Acquisition

Corp

(e)

5,086‌

50‌

G

Squared

Ascend

I

Inc

(e)

6,784‌

67‌

GigCapital4

Inc

(e)

2,116‌

21‌

Goal

Acquisitions

Corp

(e)

21,310‌

206‌

Golden

Falcon

Acquisition

Corp

(e)

9,804‌

95‌

GS

Acquisition

Holdings

Corp

II

(e)

11,352‌

113‌

Healthcare

Services

Acquisition

Corp

(e)

9,855‌

96‌

Investindustrial

Acquisition

Corp

(e)

2,568‌

25‌

Jaws

Spitfire

Acquisition

Corp

(e)

16‌

—‌

Khosla

Ventures

Acquisition

Co

(e)

51‌

—‌

KL

Acquisition

Corp

(e)

12,448‌

120‌

Longview

Acquisition

Corp

II

(e)

3,310‌

33‌

Marquee

Raine

Acquisition

Corp

(e)

10,127‌

100‌

New

Vista

Acquisition

Corp

(e)

10,476‌

104‌

NextGen

Acquisition

Corp

II

(e)

238‌

2‌

Noble

Rock

Acquisition

Corp

(e)

7,560‌

74‌

Noble

Rock

Acquisition

Corp

(e)

5,171‌

50‌

Omega

Alpha

SPAC

(e)

9,021‌

87‌

One

Equity

Partners

Open

Water

I

Corp

(e)

6,552‌

65‌

Plum

Acquisition

Corp

I

(e)

6,853‌

67‌

Pontem

Corp

(e)

11,634‌

113‌

Post

Holdings

Partnering

Corp

(e)

1,295‌

12‌

Prime

Impact

Acquisition

I

(e)

8,470‌

83‌

Prospector

Capital

Corp

(e)

9,585‌

93‌

Queen's

Gambit

Growth

Capital

(e)

219‌

2‌

Reinvent

Technology

Partners

Y

(e)

10,952‌

108‌

RMG

Acquisition

Corp

III

(e)

8,273‌

80‌

Rocket

Internet

Growth

Opportunities

Corp

(e)

5,255‌

52‌

Social

Capital

Hedosophia

Holdings

Corp

VI

(e)

905‌

9‌

Spartan

Acquisition

Corp

III

(e)

5,688‌

56‌

Thimble

Point

Acquisition

Corp

(e)

8,384‌

83‌

Thunder

Bridge

Capital

Partners

III

Inc

(e)

11,140‌

107‌

Tishman

Speyer

Innovation

Corp

II

(e)

8,488‌

83‌

Trebia

Acquisition

Corp

(e)

5,051‌

50‌

VectoIQ

Acquisition

Corp

II

(e)

9,058‌

88‌

Virgin

Group

Acquisition

Corp

II

(e)

8,006‌

78‌

Virtuoso

Acquisition

Corp

(e)

5,303‌

52‌

Vy

Global

Growth

(e)

10,277‌

100‌

Yucaipa

Acquisition

Corp

(e)

9,128‌

90‌

$

4,762‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Home

Builders

-

0.35%

Cavco

Industries

Inc

(e)

335‌

$

86‌

DR

Horton

Inc

(c)

3,666‌

351‌

Glenveagh

Properties

PLC

(e),(i)

104,599‌

134‌

Kaufman

&

Broad

SA

1,966‌

92‌

Lennar

Corp

-

A

Shares

(c),(f)

2,821‌

303‌

NVR

Inc

(e)

67‌

347‌

Persimmon

PLC

4,085‌

165‌

PulteGroup

Inc

(c),(f)

3,320‌

178‌

Skyline

Champion

Corp

(e)

3,162‌

198‌

Thor

Industries

Inc

971‌

110‌

$

1,964‌

Home

Furnishings

-

0.30%

GN

Store

Nord

AS

1,338‌

101‌

Herman

Miller

Inc

2,040‌

86‌

Hoshizaki

Corp

3,100‌

291‌

Panasonic

Corp

17,400‌

208‌

Sony

Group

Corp

8,600‌

889‌

Whirlpool

Corp

(f)

489‌

108‌

$

1,683‌

Housewares

-

0.03%

Newell

Brands

Inc

(f)

5,811‌

148‌

Insurance

-

1.82%

Aon

PLC

654‌

188‌

Arch

Capital

Group

Ltd

(c),(e)

3,423‌

141‌

Assurant

Inc

(f)

1,788‌

304‌

Athene

Holding

Ltd

(c),(e)

13,412‌

898‌

AXA

SA

17,235‌

484‌

Beazley

PLC

(e)

13,752‌

74‌

Berkshire

Hathaway

Inc

-

Class

B

(e),(f)

4,186‌

1,196‌

Chubb

Ltd

2,779‌

511‌

Cincinnati

Financial

Corp

(f)

809‌

100‌

CNO

Financial

Group

Inc

2,586‌

63‌

Dai-ichi

Life

Holdings

Inc

15,300‌

303‌

Equitable

Holdings

Inc

1,793‌

56‌

Everest

Re

Group

Ltd

(c)

4,696‌

1,244‌

Fidelity

National

Financial

Inc

(c)

8,501‌

415‌

Gjensidige

Forsikring

ASA

7,499‌

175‌

Hartford

Financial

Services

Group

Inc/The

3,700‌

249‌

Lancashire

Holdings

Ltd

7,069‌

61‌

Markel

Corp

(e)

239‌

304‌

Marsh

&

McLennan

Cos

Inc

(f)

4,986‌

784‌

MetLife

Inc

2,715‌

168‌

MGIC

Investment

Corp

5,548‌

85‌

MS&AD

Insurance

Group

Holdings

Inc

8,900‌

288‌

Muenchener

Rueckversicherungs-Gesellschaft

AG

in

Muenchen

668‌

195‌

NMI

Holdings

Inc

(e)

2,185‌

49‌

ProAssurance

Corp

3,347‌

85‌

Progressive

Corp/The

1,778‌

171‌

Radian

Group

Inc

3,318‌

78‌

SiriusPoint

Ltd

(e)

6,188‌

61‌

T&D

Holdings

Inc

6,500‌

79‌

Travelers

Cos

Inc/The

419‌

67‌

Voya

Financial

Inc

902‌

59‌

White

Mountains

Insurance

Group

Ltd

79‌

88‌

Willis

Towers

Watson

PLC

(c)

5,553‌

1,226‌

$

10,249‌

Internet

-

2.91%

Airbnb

Inc

(c),(e)

2,481‌

385‌

Alibaba

Group

Holding

Ltd

ADR

(e)

300‌

50‌

Alphabet

Inc

-

A

Shares

(c),(e),(f)

1,725‌

4,992‌

Alphabet

Inc

-

C

Shares

(e)

58‌

169‌

Amazon.com

Inc

(c),(e),(f)

1,030‌

3,574‌

Booking

Holdings

Inc

(e)

88‌

202‌

CDW

Corp/DE

119‌

24‌

Criteo

SA

ADR

(e)

1,687‌

63‌

eBay

Inc

(f)

6,808‌

522‌

F5

Networks

Inc

(e)

508‌

103‌

Facebook

Inc

(c),(e),(f)

6,980‌

2,648‌

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

131

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Internet

(continued)

GoDaddy

Inc

(e)

1,106‌

$

81‌

Kakaku.com

Inc

5,000‌

156‌

Match

Group

Inc

(e)

835‌

115‌

MercadoLibre

Inc

(e)

90‌

168‌

Mimecast

Ltd

(e)

1,256‌

88‌

Netflix

Inc

(c),(e),(f)

731‌

416‌

NortonLifeLock

Inc

(f)

7,584‌

201‌

Perficient

Inc

(e)

1,490‌

178‌

Proofpoint

Inc

(e)

5,367‌

944‌

Shopify

Inc

(e)

100‌

153‌

Shutterstock

Inc

689‌

79‌

Snap

Inc

Class

A

(e)

3,559‌

271‌

Spotify

Technology

SA

(e)

861‌

202‌

Trend

Micro

Inc/Japan

3,100‌

170‌

Twitter

Inc

(e),(f)

2,407‌

156‌

VeriSign

Inc

(e)

23‌

5‌

ZOZO

Inc

8,000‌

305‌

$

16,420‌

Iron

&

Steel

-

0.21%

Carpenter

Technology

Corp

1,782‌

59‌

JFE

Holdings

Inc

11,900‌

193‌

Nippon

Steel

Corp

8,300‌

170‌

Nucor

Corp

(f)

2,020‌

238‌

Reliance

Steel

&

Aluminum

Co

662‌

99‌

voestalpine

AG

9,759‌

443‌

$

1,202‌

Leisure

Products

&

Services

-

0.16%

MIPS

AB

813‌

91‌

Planet

Fitness

Inc

(e)

703‌

57‌

Polaris

Inc

983‌

118‌

Shimano

Inc

1,700‌

499‌

Thule

Group

AB

(i)

1,456‌

79‌

YETI

Holdings

Inc

(e)

534‌

53‌

$

897‌

Lodging

-

0.08%

Boyd

Gaming

Corp

(e)

739‌

45‌

Choice

Hotels

International

Inc

1,555‌

186‌

Diamond

Resorts

International

-

Escrow

(e),(g)

28,468‌

—‌

Hilton

Grand

Vacations

Inc

(e)

1,960‌

86‌

Las

Vegas

Sands

Corp

(e)

1,748‌

78‌

Marriott

International

Inc/MD

(e)

404‌

54‌

MGM

Resorts

International

(f)

470‌

20‌

$

469‌

Machinery

-

Construction

&

Mining

-

0.21%

Astec

Industries

Inc

1,415‌

87‌

Caterpillar

Inc

315‌

66‌

Hitachi

Ltd

4,300‌

238‌

Mitsubishi

Electric

Corp

11,900‌

163‌

Mitsubishi

Heavy

Industries

Ltd

5,200‌

137‌

Sandvik

AB

18,746‌

478‌

$

1,169‌

Machinery

-

Diversified

-

0.98%

Altra

Industrial

Motion

Corp

1,551‌

91‌

Applied

Industrial

Technologies

Inc

984‌

87‌

Colfax

Corp

(e)

1,382‌

67‌

Curtiss-Wright

Corp

521‌

63‌

Deere

&

Co

(f)

669‌

253‌

Dover

Corp

(c),(f)

4,378‌

764‌

FANUC

Corp

1,600‌

349‌

GEA

Group

AG

6,862‌

317‌

Hydrofarm

Holdings

Group

Inc

(e)

522‌

26‌

Ichor

Holdings

Ltd

(e)

1,185‌

52‌

IDEX

Corp

1,066‌

239‌

Inficon

Holding

AG

70‌

88‌

Ingersoll

Rand

Inc

(e)

1,750‌

93‌

Interpump

Group

SpA

1,675‌

119‌

Keyence

Corp

1,000‌

600‌

Kone

Oyj

7,266‌

603‌

Kornit

Digital

Ltd

(e)

214‌

28‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Machinery

-

Diversified

(continued)

Marel

HF

(i)

13,212‌

$

99‌

Middleby

Corp/The

(e)

1,020‌

187‌

Otis

Worldwide

Corp

(c)

5,773‌

532‌

Rotork

PLC

20,115‌

92‌

SMC

Corp

300‌

192‌

Spirax-Sarco

Engineering

PLC

319‌

71‌

Stabilus

SA

1,642‌

129‌

Washtec

AG

1,225‌

86‌

Welbilt

Inc

(e)

9,281‌

217‌

Westinghouse

Air

Brake

Technologies

Corp

1,138‌

102‌

$

5,546‌

Media

-

0.38%

Cable

One

Inc

141‌

296‌

Charter

Communications

Inc

(e)

56‌

46‌

Comcast

Corp

-

Class

A

661‌

40‌

DISH

Network

Corp

(c),(e),(f)

13,796‌

601‌

Fox

Corp

-

A

Shares

1,232‌

46‌

iHeartMedia

Inc

(e)

7,461‌

186‌

Liberty

Global

PLC

-

A

Shares

(c),(e)

12,357‌

355‌

News

Corp

-

A

Shares

(c)

8,411‌

190‌

Nexstar

Media

Group

Inc

132‌

20‌

Quebecor

Inc

6,100‌

152‌

TEGNA

Inc

4,117‌

73‌

Walt

Disney

Co/The

(e)

200‌

36‌

Wolters

Kluwer

NV

1,054‌

121‌

$

2,162‌

Metal

Fabrication

&

Hardware

-

0.04%

Tenaris

SA

15,726‌

158‌

Troax

Group

AB

2,181‌

90‌

$

248‌

Mining

-

0.88%

BHP

Group

Ltd

14,663‌

485‌

BHP

Group

PLC

ADR

3,719‌

233‌

Boliden

AB

(e)

9,426‌

329‌

Compass

Minerals

International

Inc

1,100‌

74‌

Ecobat

Holdings,

Inc

-

Class

B

(e),(g)

2,998‌

2,398‌

Freeport-McMoRan

Inc

(f)

1,019‌

37‌

Kinross

Gold

Corp

31,200‌

188‌

Kirkland

Lake

Gold

Ltd

4,500‌

179‌

Livent

Corp

(e)

4,574‌

114‌

MP

Materials

Corp

(e)

2,182‌

73‌

Newcrest

Mining

Ltd

10,763‌

194‌

Newmont

Corp

982‌

57‌

Rio

Tinto

PLC

6,239‌

462‌

Yamana

Gold

Inc

35,300‌

156‌

$

4,979‌

Miscellaneous

Manufacturers

-

0.55%

3M

Co

(f)

2,545‌

496‌

Alfa

Laval

AB

2,329‌

95‌

Carlisle

Cos

Inc

350‌

74‌

Diploma

PLC

3,014‌

127‌

Eaton

Corp

PLC

284‌

48‌

General

Electric

Co

1,952‌

206‌

Hexpol

AB

5,976‌

77‌

Illinois

Tool

Works

Inc

(c)

3,072‌

715‌

Knorr-Bremse

AG

1,117‌

134‌

Siemens

AG

4,126‌

684‌

Sturm

Ruger

&

Co

Inc

870‌

68‌

Textron

Inc

1,221‌

89‌

Trane

Technologies

PLC

1,563‌

310‌

$

3,123‌

Office

&

Business

Equipment

-

0.10%

Canon

Inc

8,700‌

207‌

Zebra

Technologies

Corp

(e),(f)

576‌

338‌

$

545‌

Office

Furnishings

-

0.01%

Interface

Inc

5,234‌

75‌

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

132

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Oil

&

Gas

-

0.74%

APA

Corp

(f)

17,549‌

$

342‌

Bellatrix

Exploration

Ltd

(e),(g)

94,641‌

—‌

BP

PLC

35,367‌

144‌

California

Resources

Corp

(e)

3,331‌

114‌

Canadian

Natural

Resources

Ltd

3,290‌

109‌

Chesapeake

Energy

Corp

1,032‌

58‌

Chevron

Corp

417‌

40‌

ConocoPhillips

1,042‌

58‌

Diamondback

Energy

Inc

429‌

33‌

EOG

Resources

Inc

2,637‌

178‌

Exxon

Mobil

Corp

(c)

7,830‌

427‌

Hess

Corp

593‌

41‌

Lundin

Energy

AB

13,044‌

399‌

Marathon

Oil

Corp

5,569‌

65‌

Marathon

Petroleum

Corp

(f)

7,693‌

456‌

Nabors

Industries

Ltd

(e)

871‌

73‌

Nabors

Industries

Ltd

-

Warrants

(e)

333‌

2‌

Occidental

Petroleum

Corp

(f)

7,010‌

180‌

OMV

AG

4,670‌

259‌

Parkland

Corp/Canada

7,800‌

233‌

Royal

Dutch

Shell

PLC

-

A

Shares

11,778‌

233‌

Royal

Dutch

Shell

PLC

-

B

shares

ADR

3,237‌

127‌

Santos

Ltd

36,185‌

159‌

TotalEnergies

SE

4,504‌

199‌

Valero

Energy

Corp

(c)

1,829‌

121‌

Whiting

Petroleum

Corp

(e)

2,723‌

128‌

$

4,178‌

Oil

&

Gas

Services

-

0.19%

Baker

Hughes

Co

(c)

12,818‌

292‌

Halliburton

Co

(f)

19,483‌

389‌

MRC

Global

Inc

(e)

8,457‌

69‌

NOV

Inc

(e),(f)

18,750‌

247‌

Schlumberger

NV

1,844‌

52‌

$

1,049‌

Packaging

&

Containers

-

0.19%

Amcor

PLC

(c)

13,983‌

180‌

Ball

Corp

1,324‌

127‌

CCL

Industries

Inc

5,400‌

308‌

Sealed

Air

Corp

(c),(f)

5,490‌

335‌

Vidrala

SA

1,106‌

128‌

$

1,078‌

Pharmaceuticals

-

1.63%

AbbVie

Inc

(f)

4,696‌

567‌

AmerisourceBergen

Corp

(f)

2,714‌

332‌

Arvinas

Inc

(e)

724‌

62‌

AstraZeneca

PLC

ADR

1,246‌

73‌

AstraZeneca

PLC

1,509‌

176‌

Becton

Dickinson

and

Co

168‌

42‌

BioGaia

AB

1,220‌

71‌

Bristol-Myers

Squibb

Co

2,137‌

143‌

Chugai

Pharmaceutical

Co

Ltd

9,700‌

379‌

CVS

Health

Corp

(f)

6,649‌

574‌

Dexcom

Inc

(e)

437‌

231‌

Elanco

Animal

Health

Inc

(e)

2,412‌

80‌

Eli

Lilly

&

Co

330‌

86‌

GoodRx

Holdings

Inc

(e)

2,380‌

90‌

Intellia

Therapeutics

Inc

(e)

195‌

31‌

Johnson

&

Johnson

(c),(f)

9,593‌

1,661‌

Kura

Oncology

Inc

(e)

1,499‌

28‌

McKesson

Corp

(c),(f)

4,751‌

970‌

Merck

&

Co

Inc

783‌

60‌

Myovant

Sciences

Ltd

(e)

3,810‌

93‌

Nippon

Shinyaku

Co

Ltd

1,500‌

122‌

Novartis

AG

2,267‌

210‌

Novo

Nordisk

A/S

4,515‌

452‌

Organon

&

Co

3,413‌

116‌

Orion

Oyj

7,037‌

287‌

Pfizer

Inc

(f)

23,200‌

1,069‌

Premier

Inc

2,207‌

82‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Pharmaceuticals

(continued)

Sanofi

3,039‌

$

315‌

Santen

Pharmaceutical

Co

Ltd

24,000‌

359‌

Takeda

Pharmaceutical

Co

Ltd

13,400‌

446‌

$

9,207‌

Pipelines

-

0.08%

Energy

Transfer

LP

2,796‌

26‌

Keyera

Corp

12,000‌

289‌

Kinder

Morgan

Inc

1,052‌

17‌

ONEOK

Inc

1,832‌

96‌

Southcross

Holdings

(e)

615,976‌

5‌

$

433‌

Private

Equity

-

0.07%

Blackstone

Inc

351‌

44‌

Bridgepoint

Group

PLC

(e),(i)

4,152‌

29‌

Intermediate

Capital

Group

PLC

3,868‌

117‌

Partners

Group

Holding

AG

112‌

199‌

$

389‌

Real

Estate

-

0.37%

Catena

AB

1,932‌

125‌

CBRE

Group

Inc

(e),(f)

2,445‌

235‌

CK

Asset

Holdings

Ltd

32,500‌

212‌

Daito

Trust

Construction

Co

Ltd

1,900‌

209‌

Fastighets

AB

Balder

(e)

3,293‌

236‌

Kojamo

Oyj

2,444‌

59‌

LEG

Immobilien

SE

2,124‌

339‌

Marcus

&

Millichap

Inc

(e)

1,857‌

73‌

REA

Group

Ltd

1,766‌

198‌

Shurgard

Self

Storage

SA

975‌

58‌

Sun

Hung

Kai

Properties

Ltd

24,000‌

338‌

$

2,082‌

REITs

-

1.34%

Acadia

Realty

Trust

4,401‌

93‌

Alexandria

Real

Estate

Equities

Inc

(f)

1,947‌

402‌

American

Tower

Corp

(f)

1,705‌

498‌

Americold

Realty

Trust

2,433‌

89‌

AvalonBay

Communities

Inc

(f)

239‌

55‌

Big

Yellow

Group

PLC

4,323‌

91‌

Camden

Property

Trust

223‌

33‌

Crown

Castle

International

Corp

(f)

412‌

80‌

Dexus/AU

45,051‌

351‌

Digital

Realty

Trust

Inc

274‌

45‌

Duke

Realty

Corp

(f)

4,192‌

220‌

Empire

State

Realty

Trust

Inc

6,503‌

67‌

Equinix

Inc

72‌

61‌

Essential

Properties

Realty

Trust

Inc

2,312‌

75‌

Extra

Space

Storage

Inc

(f)

1,408‌

263‌

Gaming

and

Leisure

Properties

Inc

436‌

22‌

Hibernia

REIT

plc

61,096‌

91‌

Iron

Mountain

Inc

(f)

3,351‌

160‌

Kimco

Realty

Corp

(f)

11,453‌

250‌

Mid-America

Apartment

Communities

Inc

(f)

1,204‌

232‌

Omega

Healthcare

Investors

Inc

1,175‌

39‌

Pebblebrook

Hotel

Trust

3,357‌

74‌

Piedmont

Office

Realty

Trust

Inc

8,438‌

150‌

Public

Storage

(f)

1,350‌

437‌

QTS

Realty

Trust

Inc

11,580‌

903‌

Regency

Centers

Corp

(c)

15,329‌

1,052‌

Ryman

Hospitality

Properties

Inc

(e)

399‌

33‌

SBA

Communications

Corp

49‌

18‌

Simon

Property

Group

Inc

(c)

1,122‌

151‌

Stockland

39,912‌

135‌

UDR

Inc

2,029‌

110‌

UNITE

Group

PLC/The

4,814‌

81‌

Uniti

Group

Inc

6,993‌

91‌

Ventas

Inc

(c)

2,666‌

149‌

VICI

Properties

Inc

4,281‌

132‌

Weyerhaeuser

Co

(f)

19,371‌

697‌

Workspace

Group

PLC

5,965‌

76‌

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

133

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

REITs

(continued)

Xenia

Hotels

&

Resorts

Inc

(e)

1,928‌

$

34‌

$

7,540‌

Retail

-

2.62%

Advance

Auto

Parts

Inc

(c),(f)

2,698‌

547‌

Alimentation

Couche-Tard

Inc

16,400‌

663‌

AutoZone

Inc

(e),(f)

207‌

321‌

Bath

&

Body

Works

Inc

(c),(f)

8,217‌

555‌

Burlington

Stores

Inc

(c),(e)

653‌

195‌

Canadian

Tire

Corp

Ltd

1,900‌

289‌

CarMax

Inc

(e)

2,039‌

255‌

Cazoo

Group

Ltd

(e)

6,061‌

52‌

Chipotle

Mexican

Grill

Inc

(e)

108‌

205‌

Costco

Wholesale

Corp

(c)

954‌

434‌

Dollar

Tree

Inc

(e)

1,305‌

118‌

Five

Below

Inc

(e)

1,011‌

215‌

Floor

&

Decor

Holdings

Inc

(e)

586‌

72‌

Gap

Inc/The

1,487‌

40‌

Genuine

Parts

Co

(f)

3,797‌

464‌

Home

Depot

Inc/The

(c),(f)

3,241‌

1,057‌

Industria

de

Diseno

Textil

SA

14,836‌

507‌

JD

Sports

Fashion

PLC

22,561‌

313‌

Lowe's

Cos

Inc

(c),(f)

3,398‌

692‌

Lululemon

Athletica

Inc

(e)

669‌

268‌

McDonald's

Corp

1,615‌

384‌

Movado

Group

Inc

2,454‌

89‌

1,302‌

142‌

Ollie's

Bargain

Outlet

Holdings

Inc

(e)

1,269‌

92‌

O'Reilly

Automotive

Inc

(c),(e),(f)

1,314‌

781‌

Pandora

A/S

1,168‌

140‌

Ross

Stores

Inc

(c)

3,914‌

463‌

Starbucks

Corp

(f)

4,134‌

486‌

Swatch

Group

AG/The

-

REG

3,080‌

169‌

Target

Corp

(c),(f)

4,045‌

998‌

TJX

Cos

Inc/The

5,378‌

391‌

Ulta

Beauty

Inc

(c),(e)

1,081‌

419‌

USS

Co

Ltd

22,400‌

370‌

Walgreens

Boots

Alliance

Inc

(c)

2,558‌

130‌

Walmart

Inc

(c)

4,834‌

716‌

Wesfarmers

Ltd

11,165‌

488‌

WH

Smith

PLC

(e)

3,078‌

69‌

Wingstop

Inc

341‌

59‌

Yum!

Brands

Inc

(c),(f)

8,679‌

1,138‌

$

14,786‌

Savings

&

Loans

-

0.05%

Berkshire

Hills

Bancorp

Inc

3,186‌

82‌

Pacific

Premier

Bancorp

Inc

1,962‌

78‌

Sterling

Bancorp/DE

2,936‌

67‌

WSFS

Financial

Corp

1,061‌

48‌

$

275‌

Semiconductors

-

2.19%

Advanced

Micro

Devices

Inc

(c),(e)

7,387‌

818‌

Advantest

Corp

1,200‌

103‌

Analog

Devices

Inc

(c)

6,785‌

1,106‌

Applied

Materials

Inc

(c),(f)

9,804‌

1,324‌

ASML

Holding

NV

1,018‌

849‌

BE

Semiconductor

Industries

NV

1,402‌

128‌

Broadcom

Inc

(c)

477‌

237‌

Intel

Corp

(c)

3,388‌

183‌

KLA

Corp

(c)

1,309‌

445‌

Lam

Research

Corp

(c)

1,053‌

638‌

Magnachip

Semiconductor

Corp

(e)

2,700‌

49‌

Marvell

Technology

Inc

1,499‌

92‌

Microchip

Technology

Inc

(c)

1,387‌

218‌

Micron

Technology

Inc

(c)

4,312‌

318‌

MKS

Instruments

Inc

996‌

147‌

Monolithic

Power

Systems

Inc

(c)

454‌

225‌

NVIDIA

Corp

(c)

2,894‌

648‌

NXP

Semiconductors

NV

414‌

89‌

Qorvo

Inc

(c),(e),(f)

2,189‌

412‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Semiconductors

(continued)

QUALCOMM

Inc

(c)

5,587‌

$

819‌

Rambus

Inc

(e)

4,402‌

105‌

Rohm

Co

Ltd

1,000‌

96‌

Samsung

Electronics

Co

Ltd

809‌

53‌

Silicon

Motion

Technology

Corp

ADR

1,286‌

96‌

Skyworks

Solutions

Inc

(c),(f)

2,220‌

407‌

SOITEC

(e)

443‌

106‌

STMicroelectronics

NV

9,549‌

425‌

Synaptics

Inc

(e)

700‌

133‌

Teradyne

Inc

(c)

807‌

98‌

Texas

Instruments

Inc

(c)

2,683‌

512‌

Tokyo

Electron

Ltd

300‌

129‌

Tower

Semiconductor

Ltd

(e)

9,686‌

285‌

Xilinx

Inc

(c)

6,880‌

1,070‌

$

12,363‌

Shipbuilding

-

0.02%

Huntington

Ingalls

Industries

Inc

17‌

3‌

Wartsila

OYJ

Abp

6,692‌

95‌

$

98‌

Software

-

2.79%

8x8

Inc

(e)

3,096‌

75‌

Activision

Blizzard

Inc

(c)

1,834‌

151‌

Adobe

Inc

(c),(e),(f)

784‌

520‌

Agilysys

Inc

(e)

1,807‌

103‌

ANSYS

Inc

(e),(f)

85‌

31‌

Autodesk

Inc

(e),(f)

213‌

66‌

Bandwidth

Inc

(e)

439‌

45‌

Black

Knight

Inc

(e)

1,627‌

123‌

Box

Inc

(e)

3,842‌

99‌

Broadridge

Financial

Solutions

Inc

(f)

1,692‌

291‌

Cadence

Design

Systems

Inc

(e),(f)

177‌

29‌

Cardlytics

Inc

(e)

1,328‌

121‌

Cerner

Corp

78‌

6‌

Change

Healthcare

Inc

(e)

12,947‌

283‌

Constellation

Software

Inc/Canada

218‌

369‌

CSG

Systems

International

Inc

1,317‌

63‌

Datadog

Inc

(c),(e)

1,142‌

157‌

Digital

Turbine

Inc

(e)

1,613‌

94‌

DocuSign

Inc

(e)

1,123‌

333‌

Dropbox

Inc

-

A

Shares

(c),(e)

3,025‌

96‌

Dynatrace

Inc

(c),(e)

6,584‌

453‌

Electronic

Arts

Inc

(c),(f)

2,592‌

377‌

Fair

Isaac

Corp

(c),(e)

1,102‌

506‌

Fiserv

Inc

(e)

20‌

2‌

Five9

Inc

(e)

1,477‌

234‌

Guidewire

Software

Inc

(e)

837‌

99‌

Health

Catalyst

Inc

(e)

1,272‌

69‌

Inovalon

Holdings

Inc

(e)

1,196‌

49‌

Intuit

Inc

(c),(f)

1,013‌

573‌

J2

Global

Inc

(e)

548‌

75‌

Jamf

Holding

Corp

(e)

2,210‌

78‌

Konami

Holdings

Corp

1,000‌

63‌

Manhattan

Associates

Inc

(e)

474‌

77‌

Microsoft

Corp

(c),(f)

14,114‌

4,261‌

MINDBODY

Inc

(e),(g)

9,229‌

337‌

MongoDB

Inc

(e)

268‌

105‌

NextGen

Healthcare

Inc

(e)

4,567‌

70‌

Nuance

Communications

Inc

(c),(e)

1,289‌

71‌

Oracle

Corp

(f)

8,851‌

789‌

Paychex

Inc

(f)

4,415‌

505‌

Paycom

Software

Inc

(e)

532‌

260‌

Porch

Group

Inc

(e)

2,952‌

59‌

PROS

Holdings

Inc

(e)

1,765‌

76‌

PTC

Inc

(e),(f)

483‌

64‌

RingCentral

Inc

(e)

478‌

121‌

Roper

Technologies

Inc

(f)

103‌

50‌

salesforce.com

Inc

(e),(f)

1,878‌

498‌

SAP

SE

623‌

94‌

ServiceNow

Inc

(c),(e),(f)

631‌

406‌

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

134

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Software

(continued)

SimCorp

A/S

601‌

$

82‌

Snowflake

Inc

-

Class

A

(c),(e)

406‌

124‌

Square

Enix

Holdings

Co

Ltd

2,400‌

140‌

Synopsys

Inc

(e),(f)

149‌

50‌

Take-Two

Interactive

Software

Inc

(c),(e)

2,023‌

326‌

Topicus.com

Inc

(e)

341‌

35‌

Veeva

Systems

Inc

(c),(e)

1,284‌

426‌

Veritone

Inc

(e)

4,740‌

99‌

Verra

Mobility

Corp

(e)

3,348‌

52‌

VMware

Inc

(e)

567‌

84‌

WiseTech

Global

Ltd

3,716‌

131‌

Workday

Inc

(e)

782‌

214‌

Xperi

Holding

Corp

3,992‌

85‌

Zoom

Video

Communications

Inc

(c),(e)

1,317‌

381‌

$

15,705‌

Telecommunications

-

1.09%

Arista

Networks

Inc

(e)

535‌

198‌

AT&T

Inc

386‌

11‌

Cisco

Systems

Inc/Delaware

(c),(f)

21,463‌

1,267‌

Corning

Inc

235‌

9‌

Deutsche

Telekom

AG

5,113‌

109‌

Elisa

Oyj

3,676‌

236‌

Hellenic

Telecommunications

Organization

SA

5,872‌

116‌

HMS

Networks

AB

1,194‌

62‌

InterDigital

Inc

1,014‌

73‌

Juniper

Networks

Inc

(f)

13,019‌

377‌

KDDI

Corp

7,200‌

220‌

Koninklijke

KPN

NV

69,520‌

223‌

Lumen

Technologies

Inc

2,090‌

26‌

Motorola

Solutions

Inc

(c)

2,106‌

514‌

Nippon

Telegraph

&

Telephone

Corp

20,100‌

535‌

Nokia

OYJ

(e)

28,501‌

171‌

Plantronics

Inc

(e)

2,007‌

60‌

SoftBank

Group

Corp

2,000‌

113‌

Telefonaktiebolaget

LM

Ericsson

37,960‌

450‌

T-Mobile

US

Inc

(e)

4,200‌

575‌

Verizon

Communications

Inc

715‌

39‌

Vodafone

Group

PLC

ADR

34,800‌

594‌

Vodafone

Group

PLC

93,100‌

156‌

$

6,134‌

Textiles

-

0.13%

Mohawk

Industries

Inc

(c),(e),(f)

3,813‌

754‌

Toys,

Games

&

Hobbies

-

0.16%

Games

Workshop

Group

PLC

776‌

123‌

Hasbro

Inc

(c)

4,182‌

412‌

Nintendo

Co

Ltd

800‌

384‌

$

919‌

Transportation

-

1.07%

AP

Moller

-

Maersk

A/S

-

B

80‌

228‌

Aurizon

Holdings

Ltd

158,464‌

436‌

Canadian

National

Railway

Co

1,731‌

204‌

CSX

Corp

753‌

24‌

Deutsche

Post

AG

3,712‌

261‌

DSV

PANALPINA

A/S

1,402‌

357‌

Expeditors

International

of

Washington

Inc

(c),(f)

7,440‌

928‌

FedEx

Corp

(c)

913‌

243‌

Hub

Group

Inc

(e)

1,156‌

81‌

InPost

SA

(e)

4,796‌

94‌

Kansas

City

Southern

(c)

4,297‌

1,206‌

Kirby

Corp

(e)

1,328‌

71‌

Kuehne

+

Nagel

International

AG

843‌

308‌

Norfolk

Southern

Corp

268‌

68‌

Old

Dominion

Freight

Line

Inc

(c)

1,768‌

510‌

Ryder

System

Inc

480‌

38‌

Union

Pacific

Corp

1,279‌

277‌

United

Parcel

Service

Inc

(c),(f)

3,634‌

711‌

$

6,045‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Water

-

0.03%

Veolia

Environnement

SA

4,657‌

$

160‌

TOTAL

COMMON

STOCKS

$

251,225‌

CONVERTIBLE

PREFERRED

STOCKS

-

0.74%

Shares

Held

Value

(000's)

Agriculture

-

0.05%

Bunge

Ltd

4.88%

(j)

2,237‌

$

255‌

Banks

-

0.08%

Bank

of

America

Corp

7.25%

(j)

151‌

222‌

Wells

Fargo

&

Co

7.50%

(j)

151‌

225‌

$

447‌

Diversified

Financial

Services

-

0.05%

4L

Technologies

-

Rights

0.00%

(e),(g)

870‌

304‌

Healthcare

-

Products

-

0.01%

Boston

Scientific

Corp

5.50%,

06/01/2023

676‌

81‌

Pipelines

-

0.45%

El

Paso

Energy

Capital

Trust

I

4.75%,

03/31/2028

452‌

23‌

Southcross

Energy

Series

A

0.00%

(e),(g)

2,399,339‌

1,200‌

Southcross

Energy

Series

B

0.00%

(e),(g)

644,694‌

1,289‌

$

2,512‌

Real

Estate

-

0.01%

WE

Company

Preferred

D-1

0.00%

(e),(g),(h)

2,708‌

20‌

WE

Company

Preferred

D-2

0.00%

(e),(g),(h)

3,824‌

28‌

$

48‌

Software

-

0.04%

Clarivate

PLC

5.25%,

06/01/2024

2,205‌

211‌

Telecommunications

-

0.05%

2020

Cash

Mandatory

Exchangeable

Trust

5.25%,

06/01/2023

(i)

250‌

298‌

TOTAL

CONVERTIBLE

PREFERRED

STOCKS

$

4,156‌

PREFERRED

STOCKS

-

0.04%

Shares

Held

Value

(000's)

Chemicals

-

0.04%

FUCHS

PETROLUB

SE

0.99%

5,004‌

$

252‌

TOTAL

PREFERRED

STOCKS

$

252‌

BONDS

-

28.92%

Principal

Amount

(000's)

Value

(000's)

Advertising

-

0.03%

Lamar

Media

Corp

3.75%,

02/15/2028

$

50‌

$

51‌

Outfront

Media

Capital

LLC

/

Outfront

Media

Capital

Corp

4.63%,

03/15/2030

(i)

120‌

122‌

$

173‌

Aerospace

&

Defense

-

0.61%

Boeing

Co/The

2.20%,

02/04/2026

440‌

442‌

2.95%,

02/01/2030

85‌

87‌

3.38%,

06/15/2046

250‌

245‌

3.50%,

03/01/2039

65‌

66‌

3.55%,

03/01/2038

30‌

31‌

3.63%,

03/01/2048

155‌

3.65%,

03/01/2047

50‌

3.75%,

02/01/2050

205‌

212‌

3.83%,

03/01/2059

25‌

26‌

3.85%,

11/01/2048

50‌

52‌

3.90%,

05/01/2049

100‌

105‌

3.95%,

08/01/2059

60‌

63‌

5.15%,

05/01/2030

225‌

266‌

5.81%,

05/01/2050

220‌

299‌

Bombardier

Inc

7.88%,

04/15/2027

(i)

110‌

115‌

Leonardo

US

Holdings

Inc

6.25%,

01/15/2040

(i)

541‌

633‌

Spirit

AeroSystems

Inc

4.60%,

06/15/2028

35‌

34‌

7.50%,

04/15/2025

(i)

310‌

328‌

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

135

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Aerospace

&

Defense

(continued)

TransDigm

Inc

4.63%,

01/15/2029

(i)

$

230‌

$

227‌

$

3,436‌

Airlines

-

0.18%

American

Airlines

Inc/AAdvantage

Loyalty

IP

Ltd

5.50%,

04/20/2026

(i)

40‌

42‌

5.75%,

04/20/2029

(i)

50‌

54‌

United

Airlines

2019-2

Class

B

Pass

Through

Trust

3.50%,

11/01/2029

829‌

822‌

United

Airlines

2020-1

Class

B

Pass

Through

Trust

4.88%,

07/15/2027

19‌

20‌

United

Airlines

Inc

4.38%,

04/15/2026

(i)

35‌

36‌

4.63%,

04/15/2029

(i)

55‌

57‌

$

1,031‌

Automobile

Asset

Backed

Securities

-

0.39%

Avid

Automobile

Receivables

Trust

2019-1

3.14%,

07/15/2026

(i)

150‌

154‌

Avis

Budget

Rental

Car

Funding

AESOP

LLC

2.13%,

08/20/2027

(i)

350‌

352‌

2.96%,

02/20/2027

(i)

100‌

106‌

CarMax

Auto

Owner

Trust

2018-1

3.37%,

07/15/2024

25‌

Carvana

Auto

Receivables

Trust

1.02%,

06/12/2028

(k)

100‌

Carvana

Auto

Receivables

Trust

2021-P1

1.53%,

03/10/2027

140‌

141‌

Drive

Auto

Receivables

Trust

2021-1

1.45%,

01/16/2029

220‌

221‌

Exeter

Automobile

Receivables

Trust

2020-2

4.73%,

04/15/2026

(i)

140‌

149‌

First

Investors

Auto

Owner

Trust

2019-2

2.80%,

12/15/2025

(i)

75‌

77‌

3.88%,

01/15/2026

(i)

175‌

181‌

Prestige

Auto

Receivables

Trust

2019-1

3.90%,

05/15/2026

(i)

145‌

149‌

Santander

Drive

Auto

Receivables

Trust

2020-1

5.35%,

03/15/2028

385‌

419‌

Santander

Drive

Auto

Receivables

Trust

2021-2

1.35%,

07/15/2027

150‌

151‌

$

2,225‌

Automobile

Manufacturers

-

0.14%

General

Motors

Co

5.40%,

04/01/2048

260‌

329‌

5.95%,

04/01/2049

150‌

204‌

General

Motors

Financial

Co

Inc

5.70%,

09/30/2030

(j),(l)

35‌

40‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.00%

5.75%,

09/30/2027

(j),(l)

100‌

110‌

3

Month

USD

LIBOR

+

3.60%

6.50%,

09/30/2028

(j),(l)

75‌

85‌

3

Month

USD

LIBOR

+

3.44%

$

768‌

Banks

-

1.53%

Absa

Group

Ltd

6.38%,

05/27/2026

(j),(l),(m)

200‌

208‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.41%

Banco

Hipotecario

SA

38.12%,

11/07/2022

(i)

ARS

10,245‌

109‌

Argentina

Deposit

Rates

Badlar

Private

Banks

ARS

30

to

35

Days

+

4.00%

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

Banco

Macro

SA

17.50%,

05/08/2022

(i)

ARS

5,115‌

$

47‌

Banco

Santander

SA

0.70%,

06/30/2024

(l)

$

600‌

602‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

0.45%

2.75%,

12/03/2030

200‌

201‌

Bank

of

America

Corp

0.52%,

06/14/2024

(l)

505‌

Secured

Overnight

Financing

Rate

+

0.41%

Barclays

PLC

3.56%,

09/23/2035

(l)

495‌

517‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.90%

4.38%,

03/15/2028

(j),(l),(m)

230‌

233‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.41%

Citigroup

Inc

0.98%,

05/01/2025

(l)

90‌

Secured

Overnight

Financing

Rate

+

0.67%

Deutsche

Bank

AG/New

York

NY

0.90%,

05/28/2024

190‌

3.04%,

05/28/2032

(l)

150‌

155‌

Secured

Overnight

Financing

Rate

+

1.72%

Goldman

Sachs

Group

Inc/The

0.66%,

09/10/2024

(l)

505‌

Secured

Overnight

Financing

Rate

+

0.51%

HDFC

Bank

Ltd

3.70%,

08/25/2026

(i),(j),(l),(m)

1,000‌

1,004‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.93%

International

Bank

of

Azerbaijan

OJSC

3.50%,

09/01/2024

1,150‌

1,156‌

Itau

Unibanco

Holding

SA/Cayman

Island

6.13%,

12/12/2022

(j),(l),(m)

825‌

842‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.98%

KeyBank

NA/Cleveland

OH

0.43%,

06/14/2024

(l)

505‌

Secured

Overnight

Financing

Rate

+

0.32%

Standard

Chartered

PLC

3.27%,

02/18/2036

(i),(l)

375‌

377‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.30%

Svenska

Handelsbanken

AB

0.55%,

06/11/2024

(i)

505‌

504‌

Toronto-Dominion

Bank/The

0.30%,

06/02/2023

510‌

509‌

UniCredit

SpA

2.57%,

09/22/2026

(i),(l)

350‌

356‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

2.30%

$

8,615‌

Beverages

-

0.04%

Fomento

Economico

Mexicano

SAB

de

CV

3.50%,

01/16/2050

206‌

220‌

Building

Materials

-

0.38%

Cemex

SAB

de

CV

3.88%,

07/11/2031

(i)

200‌

206‌

5.13%,

06/08/2026

(i),(j)

675‌

708‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

9.07%

5.20%,

09/17/2030

(i)

1,025‌

1,124‌

Forterra

Finance

LLC

/

FRTA

Finance

Corp

6.50%,

07/15/2025

(i)

101‌

108‌

$

2,146‌

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

136

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Chemicals

-

0.35%

Ashland

LLC

3.38%,

09/01/2031

(i)

$

155‌

$

159‌

Braskem

Netherlands

Finance

BV

4.50%,

01/31/2030

(i)

200‌

214‌

Orbia

Advance

Corp

SAB

de

CV

2.88%,

05/11/2031

(i)

205‌

209‌

Sasol

Financing

USA

LLC

4.38%,

09/18/2026

700‌

723‌

5.50%,

03/18/2031

625‌

661‌

$

1,966‌

Commercial

Mortgage

Backed

Securities

-

0.74%

COMM

2012-CCRE3

Mortgage

Trust

3.92%,

10/15/2045

(i)

110‌

109‌

COMM

2012-LC4

Mortgage

Trust

5.74%,

12/10/2044

(n)

10‌

9‌

Credit

Suisse

Commercial

Mortgage

Securities

Corp

2019-SLKZ

3.70%,

01/15/2034

(i)

155‌

153‌

1.00

x

1

Month

USD

LIBOR

+

3.60%

CSMC

2014-USA

OA

LLC

4.37%,

09/15/2037

(i)

1,055‌

952‌

Morgan

Stanley

Capital

I

Trust

2011-C2

5.39%,

06/15/2044

(i),(n)

372‌

361‌

5.39%,

06/15/2044

(i),(n)

160‌

130‌

Motel

6

Trust

2017-M6MZ

7.02%,

08/15/2024

(i)

443‌

429‌

1.00

x

1

Month

USD

LIBOR

+

6.93%

Starwood

Retail

Property

Trust

2014-STAR

2.85%,

11/15/2027

(g),(i)

170‌

76‌

1.00

x

1

Month

USD

LIBOR

+

2.75%

4.50%,

11/15/2027

(g),(i)

645‌

62‌

1.00

x

1

Month

USD

LIBOR

+

4.40%

Wells

Fargo

Commercial

Mortgage

Trust

2013-LC12

4.44%,

07/15/2046

(n)

215‌

Wells

Fargo

Commercial

Mortgage

Trust

2016-C36

4.32%,

11/15/2059

(n)

100‌

89‌

WFRBS

Commercial

Mortgage

Trust

2011-C3

5.51%,

03/15/2044

(i),(n)

403‌

196‌

WFRBS

Commercial

Mortgage

Trust

2011-C4

5.02%,

06/15/2044

(i),(n)

845‌

805‌

WFRBS

Commercial

Mortgage

Trust

2012-C6

5.95%,

04/15/2045

(i),(n)

500‌

506‌

WFRBS

Commercial

Mortgage

Trust

2012-C7

4.96%,

06/15/2045

(n)

80‌

59‌

4.96%,

06/15/2045

(i),(n)

225‌

43‌

$

4,194‌

Commercial

Services

-

0.14%

Sabre

GLBL

Inc

9.25%,

04/15/2025

(i)

30‌

35‌

Square

Inc

3.50%,

06/01/2031

(i)

110‌

114‌

StoneCo

Ltd

3.95%,

06/16/2028

(i)

475‌

458‌

TriNet

Group

Inc

3.50%,

03/01/2029

(i)

155‌

156‌

$

763‌

Cosmetics

&

Personal

Care

-

0.07%

Natura

Cosmeticos

SA

4.13%,

05/03/2028

(i)

200‌

205‌

Oriflame

Investment

Holding

PLC

5.13%,

05/04/2026

(i)

200‌

205‌

$

410‌

Credit

Card

Asset

Backed

Securities

-

0.03%

Mercury

Financial

Credit

Card

Master

Trust

1.54%,

03/20/2026

(i)

190‌

191‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Diversified

Financial

Services

-

0.92%

AerCap

Ireland

Capital

DAC

/

AerCap

Global

Aviation

Trust

3.65%,

07/21/2027

$

150‌

$

160‌

3.88%,

01/23/2028

150‌

161‌

6.50%,

07/15/2025

150‌

175‌

Air

Lease

Corp

3.13%,

12/01/2030

535‌

548‌

4.65%,

06/15/2026

(j),(l)

180‌

189‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.08%

Aircastle

Ltd

4.25%,

06/15/2026

425‌

467‌

5.25%,

06/15/2026

(i),(j),(l)

60‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.41%

Ally

Financial

Inc

4.70%,

05/15/2026

(j),(l)

220‌

232‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.87%

4.70%,

05/15/2028

(j),(l)

185‌

193‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

7

Year

+

3.48%

Antares

Holdings

LP

2.75%,

01/15/2027

(i)

255‌

256‌

Aviation

Capital

Group

LLC

1.95%,

01/30/2026

(i)

45‌

5.50%,

12/15/2024

(i)

175‌

197‌

Navient

Corp

5.00%,

03/15/2027

255‌

268‌

6.13%,

03/25/2024

5‌

OneMain

Finance

Corp

7.13%,

03/15/2026

90‌

105‌

Power

Finance

Corp

Ltd

5.25%,

08/10/2028

740‌

834‌

Quicken

Loans

LLC

/

Quicken

Loans

Co-Issuer

Inc

3.63%,

03/01/2029

(i)

270‌

276‌

3.88%,

03/01/2031

(i)

525‌

537‌

Rocket

Mortgage

LLC

5.25%,

01/15/2028

(i)

85‌

90‌

USAA

Capital

Corp

0.50%,

05/01/2024

(i)

150‌

VistaJet

Malta

Finance

PLC

/

XO

Management

Holding

Inc

10.50%,

06/01/2024

(i)

227‌

246‌

$

5,194‌

Electric

-

0.41%

Adani

Electricity

Mumbai

Ltd

3.95%,

02/12/2030

(i)

725‌

734‌

Calpine

Corp

3.75%,

03/01/2031

(i)

135‌

132‌

5.13%,

03/15/2028

(i)

125‌

127‌

Edison

International

5.38%,

03/15/2026

(j),(l)

350‌

356‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.70%

India

Green

Power

Holdings

4.00%,

02/22/2027

(i)

300‌

301‌

NRG

Energy

Inc

4.45%,

06/15/2029

(i)

130‌

145‌

5.25%,

06/15/2029

(i)

60‌

65‌

Pacific

Gas

and

Electric

Co

3.50%,

08/01/2050

210‌

189‌

4.30%,

03/15/2045

220‌

216‌

4.95%,

07/01/2050

25‌

26‌

$

2,291‌

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

137

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Engineering

&

Construction

-

0.21%

GMR

Hyderabad

International

Airport

Ltd

4.75%,

02/02/2026

(i)

$

200‌

$

201‌

5.38%,

04/10/2024

270‌

278‌

State

Agency

of

Roads

of

Ukraine

6.25%,

06/24/2028

(i)

700‌

$

1,179‌

Entertainment

-

0.11%

Everi

Holdings

Inc

5.00%,

07/15/2029

(i)

25‌

Genm

Capital

Labuan

Ltd

3.88%,

04/19/2031

(i)

200‌

201‌

Penn

National

Gaming

Inc

4.13%,

07/01/2029

(i)

65‌

Scientific

Games

International

Inc

7.00%,

05/15/2028

(i)

200‌

216‌

7.25%,

11/15/2029

(i)

75‌

84‌

$

591‌

Food

-

0.47%

Hormel

Foods

Corp

0.65%,

06/03/2024

510‌

511‌

JBS

Finance

Luxembourg

Sarl

3.63%,

01/15/2032

(i)

650‌

673‌

JBS

USA

LUX

SA

/

JBS

USA

Food

Co

/

JBS

USA

Finance

Inc

3.75%,

12/01/2031

(i)

80‌

84‌

Kraft

Heinz

Foods

Co

4.88%,

10/01/2049

570‌

709‌

5.20%,

07/15/2045

175‌

225‌

MARB

BondCo

PLC

3.95%,

01/29/2031

(i)

230‌

224‌

Pilgrim's

Pride

Corp

3.50%,

03/01/2032

(i),(k)

195‌

199‌

$

2,625‌

Forest

Products

&

Paper

-

0.03%

Suzano

Austria

GmbH

3.75%,

01/15/2031

170‌

178‌

Healthcare

-

Services

-

0.25%

Catalent

Pharma

Solutions

Inc

3.13%,

02/15/2029

(i)

50‌

Centene

Corp

2.50%,

03/01/2031

345‌

344‌

2.63%,

08/01/2031

160‌

162‌

3.00%,

10/15/2030

75‌

78‌

Charles

River

Laboratories

International

Inc

3.75%,

03/15/2029

(i)

35‌

36‌

4.00%,

03/15/2031

(i)

35‌

37‌

HCA

Inc

3.50%,

09/01/2030

135‌

145‌

Tenet

Healthcare

Corp

4.63%,

06/15/2028

(i)

5‌

6.13%,

10/01/2028

(i)

65‌

69‌

UnitedHealth

Group

Inc

0.55%,

05/15/2024

510‌

$

1,436‌

Insurance

-

0.15%

Athene

Holding

Ltd

3.50%,

01/15/2031

165‌

179‌

Global

Atlantic

Fin

Co

4.40%,

10/15/2029

(i)

130‌

144‌

Metropolitan

Life

Global

Funding

I

0.55%,

06/07/2024

(i)

510‌

509‌

$

832‌

Internet

-

0.73%

Amazon.com

Inc

0.45%,

05/12/2024

505‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Internet

(continued)

Expedia

Group

Inc

2.95%,

03/15/2031

$

55‌

$

56‌

3.25%,

02/15/2030

670‌

695‌

Go

Daddy

Operating

Co

LLC

/

GD

Finance

Co

Inc

3.50%,

03/01/2029

(i)

165‌

163‌

Netflix

Inc

4.88%,

04/15/2028

25‌

29‌

4.88%,

06/15/2030

(i)

170‌

203‌

5.38%,

11/15/2029

(i)

25‌

31‌

5.88%,

11/15/2028

100‌

124‌

6.38%,

05/15/2029

120‌

154‌

Uber

Technologies

Inc

4.50%,

08/15/2029

(i)

435‌

428‌

6.25%,

01/15/2028

(i)

55‌

59‌

7.50%,

09/15/2027

(i)

715‌

779‌

8.00%,

11/01/2026

(i)

40‌

43‌

United

Group

BV

4.00%,

11/15/2027

EUR

200‌

233‌

4.63%,

08/15/2028

(i)

500‌

591‌

$

4,093‌

Investment

Companies

-

0.44%

Ares

Capital

Corp

2.88%,

06/15/2028

$

385‌

393‌

Blackstone

Secured

Lending

Fund

2.13%,

02/15/2027

(i)

450‌

445‌

FS

KKR

Capital

Corp

3.40%,

01/15/2026

535‌

558‌

Icahn

Enterprises

LP

/

Icahn

Enterprises

Finance

Corp

5.25%,

05/15/2027

235‌

244‌

6.25%,

05/15/2026

250‌

263‌

Owl

Rock

Capital

Corp

2.88%,

06/11/2028

85‌

3.40%,

07/15/2026

425‌

445‌

Owl

Rock

Technology

Finance

Corp

2.50%,

01/15/2027

25‌

$

2,458‌

Iron

&

Steel

-

0.38%

ABJA

Investment

Co

Pte

Ltd

5.45%,

01/24/2028

210‌

230‌

CSN

Inova

Ventures

6.75%,

01/28/2028

(i)

700‌

770‌

6.75%,

01/28/2028

200‌

220‌

CSN

Islands

XII

Corp

7.00%,

09/23/2021

(j)

625‌

Metinvest

BV

7.65%,

10/01/2027

(i)

250‌

278‌

$

2,123‌

Leisure

Products

&

Services

-

0.18%

Carnival

Corp

5.75%,

03/01/2027

(i)

601‌

615‌

NCL

Corp

Ltd

5.88%,

03/15/2026

(i)

105‌

NCL

Finance

Ltd

6.13%,

03/15/2028

(i)

40‌

Royal

Caribbean

Cruises

Ltd

4.25%,

07/01/2026

(i)

35‌

34‌

5.50%,

04/01/2028

(i)

205‌

207‌

$

1,001‌

Lodging

-

0.14%

Hilton

Domestic

Operating

Co

Inc

3.63%,

02/15/2032

(i)

120‌

119‌

Hilton

Grand

Vacations

Borrower

Escrow

LLC

/

Hilton

Grand

Vacations

Borrower

Esc

4.88%,

07/01/2031

(i)

30‌

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

138

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Lodging

(continued)

Hilton

Grand

Vacations

Borrower

Escrow

LLC

/

Hilton

Grand

Vacations

Borrower

Escrow

Inc

5.00%,

06/01/2029

(i)

$

105‌

$

106‌

Hyatt

Hotels

Corp

5.38%,

04/23/2025

45‌

50‌

5.75%,

04/23/2030

80‌

96‌

Marriott

International

Inc/MD

4.63%,

06/15/2030

85‌

98‌

Marriott

Ownership

Resorts

Inc

4.50%,

06/15/2029

(i)

80‌

81‌

Travel

+

Leisure

Co

4.63%,

03/01/2030

(i)

95‌

98‌

6.00%,

04/01/2027

10‌

11‌

6.63%,

07/31/2026

(i)

100‌

114‌

$

803‌

Machinery

-

Construction

&

Mining

-

0.09%

Caterpillar

Financial

Services

Corp

0.45%,

05/17/2024

505‌

Machinery

-

Diversified

-

0.04%

John

Deere

Capital

Corp

0.45%,

06/07/2024

245‌

Media

-

0.80%

AMC

Networks

Inc

4.25%,

02/15/2029

85‌

84‌

CCO

Holdings

LLC

/

CCO

Holdings

Capital

Corp

4.25%,

02/01/2031

(i)

675‌

693‌

4.25%,

01/15/2034

(i)

50‌

4.50%,

05/01/2032

20‌

21‌

Cengage

Learning

Inc

9.50%,

06/15/2024

(i)

336‌

345‌

Charter

Communications

Operating

LLC

/

Charter

Communications

Operating

Capital

4.40%,

12/01/2061

1,020‌

1,118‌

Clear

Channel

Worldwide

Holdings

Inc

5.13%,

08/15/2027

(i)

295‌

304‌

CSC

Holdings

LLC

6.50%,

02/01/2029

(i)

200‌

221‌

DISH

DBS

Corp

5.13%,

06/01/2029

(i)

155‌

154‌

iHeartCommunications

Inc

4.75%,

01/15/2028

(i)

320‌

330‌

8.38%,

05/01/2027

285‌

303‌

LCPR

Senior

Secured

Financing

DAC

5.13%,

07/15/2029

(i)

425‌

440‌

Virgin

Media

Finance

PLC

5.00%,

07/15/2030

(i)

200‌

207‌

Ziggo

BV

4.88%,

01/15/2030

(i)

215‌

221‌

$

4,491‌

Metal

Fabrication

&

Hardware

-

0.07%

HTA

Group

Ltd/Mauritius

7.00%,

12/18/2025

(i)

365‌

386‌

Mining

-

0.33%

First

Quantum

Minerals

Ltd

6.88%,

03/01/2026

(i)

405‌

423‌

7.50%,

04/01/2025

(i)

200‌

207‌

FMG

Resources

August

2006

Pty

Ltd

4.38%,

04/01/2031

(i)

155‌

167‌

Freeport-McMoRan

Inc

4.13%,

03/01/2028

140‌

147‌

4.25%,

03/01/2030

105‌

113‌

4.63%,

08/01/2030

35‌

39‌

5.40%,

11/14/2034

160‌

201‌

5.45%,

03/15/2043

55‌

70‌

Glencore

Funding

LLC

2.85%,

04/27/2031

(i)

405‌

414‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Mining

(continued)

Novelis

Corp

4.75%,

01/30/2030

(i)

$

70‌

$

75‌

Volcan

Cia

Minera

SAA

4.38%,

02/11/2026

(i)

30‌

29‌

$

1,885‌

Mortgage

Backed

Securities

-

0.74%

Alternative

Loan

Trust

2003-22CB

5.75%,

12/25/2033

72‌

74‌

Alternative

Loan

Trust

2004-16CB

5.50%,

07/25/2034

41‌

42‌

5.50%,

08/25/2034

46‌

47‌

Alternative

Loan

Trust

2004-J10

6.00%,

09/25/2034

110‌

114‌

Alternative

Loan

Trust

2005-J1

5.50%,

02/25/2025

47‌

Banc

of

America

Alternative

Loan

Trust

2003-8

5.50%,

10/25/2033

48‌

50‌

Banc

of

America

Funding

2005-7

Trust

5.75%,

11/25/2035

48‌

52‌

Banc

of

America

Funding

2007-4

Trust

5.50%,

11/25/2034

54‌

Banc

of

America

Mortgage

2005-A

Trust

2.62%,

02/25/2035

(n)

16‌

17‌

CHL

Mortgage

Pass-Through

Trust

2004-HYB4

2.55%,

09/20/2034

(n)

21‌

CIM

Trust

2.57%,

07/25/2059

(i),(n)

182‌

183‌

Citigroup

Mortgage

Loan

Trust

2019-B

3.26%,

04/25/2066

(i),(n)

280‌

282‌

Connecticut

Avenue

Securities

Trust

2020-R01

2.13%,

01/25/2040

(i)

105‌

1.00

x

1

Month

USD

LIBOR

+

2.05%

CSFB

Mortgage-Backed

Pass-Through

Certificates

Series

2003-27

5.75%,

11/25/2033

28‌

30‌

CSMC

2019-RP10

Trust

3.01%,

12/26/2059

(i),(n)

260‌

262‌

CSMC

2020-RPL3

Trust

2.69%,

03/25/2060

(i),(n)

177‌

180‌

DSLA

Mortgage

Loan

Trust

2005-AR5

0.75%,

09/19/2045

109‌

82‌

1.00

x

1

Month

USD

LIBOR

+

0.66%

Fannie

Mae

Connecticut

Avenue

Securities

2.28%,

01/25/2030

28‌

29‌

1.00

x

1

Month

USD

LIBOR

+

2.20%

Freddie

Mac

Structured

Agency

Credit

Risk

Debt

Notes

1.88%,

07/25/2030

21‌

1.00

x

1

Month

USD

LIBOR

+

1.80%

GCAT

2020-4

LLC

2.61%,

12/25/2025

(i),(n)

377‌

379‌

GSR

Mortgage

Loan

Trust

2005-4F

6.50%,

02/25/2035

36‌

IndyMac

INDX

Mortgage

Loan

Trust

2004-AR7

1.30%,

09/25/2034

92‌

88‌

1.00

x

1

Month

USD

LIBOR

+

1.22%

IndyMac

INDX

Mortgage

Loan

Trust

2005-AR11

2.98%,

08/25/2035

(n)

421‌

386‌

Lehman

XS

Trust

Series

2006-2N

0.60%,

02/25/2046

71‌

66‌

1.00

x

1

Month

USD

LIBOR

+

0.52%

MASTR

Alternative

Loan

Trust

2003-9

5.25%,

11/25/2033

29‌

30‌

MASTR

Alternative

Loan

Trust

2004-5

5.50%,

06/25/2034

28‌

6.00%,

06/25/2034

28‌

29‌

MASTR

Alternative

Loan

Trust

2004-8

6.00%,

09/25/2034

140‌

144‌

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

139

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Mortgage

Backed

Securities

(continued)

Merrill

Lynch

Mortgage

Investors

Trust

Series

MLCC

2006-2

2.09%,

05/25/2036

(n)

$

7‌

$

7‌

PRPM

2020-5

LLC

3.10%,

11/25/2025

(i),(n)

519‌

523‌

PRPM

2021-2

LLC

2.12%,

03/25/2026

(i),(n)

101‌

PRPM

2021-3

LLC

1.87%,

04/25/2026

(i),(n)

197‌

198‌

RCO

V

Mortgage

LLC

2020-1

3.10%,

09/25/2025

(i),(n)

109‌

110‌

Structured

Adjustable

Rate

Mortgage

Loan

Trust

0.39%,

07/25/2035

470‌

342‌

1.00

x

1

Month

USD

LIBOR

+

0.31%

$

4,159‌

Oil

&

Gas

-

2.24%

Aker

BP

ASA

3.75%,

01/15/2030

(i)

505‌

546‌

Bellatrix

Exploration

8.5

-

Escrow

0.00%,

09/11/2023

(e),(g)

236‌

—‌

Bellatrix

Exploration

PIK

-

Escrow

0.00%,

12/15/2023

(e),(g)

257‌

—‌

Bonanza

Creek

Energy

Inc

7.50%,

04/30/2026

244‌

Cobalt

International

Energy

Inc

0.00%,

12/01/2023

(e)

4,635‌

67‌

Continental

Resources

Inc/OK

5.75%,

01/15/2031

(i)

190‌

232‌

Ecopetrol

SA

6.88%,

04/29/2030

450‌

542‌

Energean

Israel

Finance

Ltd

4.50%,

03/30/2024

(i)

875‌

890‌

4.88%,

03/30/2026

(i)

375‌

384‌

5.38%,

03/30/2028

(i)

380‌

388‌

5.88%,

03/30/2031

(i)

130‌

133‌

EQT

Corp

3.13%,

05/15/2026

(i)

15‌

3.63%,

05/15/2031

(i)

30‌

32‌

5.00%,

01/15/2029

15‌

17‌

Hess

Corp

5.60%,

02/15/2041

155‌

193‌

Kosmos

Energy

Ltd

7.13%,

04/04/2026

600‌

572‌

7.50%,

03/01/2028

(i)

350‌

332‌

7.50%,

03/01/2028

300‌

284‌

Leviathan

Bond

Ltd

5.75%,

06/30/2023

(i)

350‌

365‌

6.13%,

06/30/2025

(i)

660‌

719‌

6.50%,

06/30/2027

(i)

755‌

832‌

Lundin

Energy

Finance

BV

3.10%,

07/15/2031

(i)

200‌

203‌

MC

Brazil

Downstream

Trading

SARL

7.25%,

06/30/2031

(i)

650‌

676‌

OGX

Austria

GmbH

0.00%,

06/01/2018

(e),(i)

600‌

—‌

0.00%,

04/01/2022

(e),(i)

1,100‌

—‌

Ovintiv

Inc

6.50%,

08/15/2034

20‌

27‌

6.50%,

02/01/2038

10‌

14‌

6.63%,

08/15/2037

40‌

55‌

7.20%,

11/01/2031

5‌

7‌

7.38%,

11/01/2031

5‌

7‌

8.13%,

09/15/2030

25‌

34‌

Petroleos

Mexicanos

5.35%,

02/12/2028

700‌

696‌

5.95%,

01/28/2031

255‌

250‌

6.63%,

06/15/2035

225‌

218‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Oil

&

Gas

(continued)

Petroleos

Mexicanos

(continued)

6.84%,

01/23/2030

$

700‌

$

729‌

Qatar

Petroleum

2.25%,

07/12/2031

(i)

650‌

655‌

3.13%,

07/12/2041

(i)

550‌

566‌

3.30%,

07/12/2051

(i)

650‌

671‌

Saudi

Arabian

Oil

Co

3.25%,

11/24/2050

(i)

225‌

221‌

Tullow

Oil

PLC

10.25%,

05/15/2026

(i)

700‌

724‌

YPF

SA

6.95%,

07/21/2027

(i)

135‌

101‌

$

12,641‌

Other

Asset

Backed

Securities

-

3.39%

Accelerated

Assets

2018-1

LLC

4.51%,

12/02/2033

(i)

112‌

116‌

Adams

Outdoor

Advertising

LP

4.81%,

11/15/2048

(i)

723‌

776‌

AIM

Aviation

Finance

Ltd

5.07%,

02/15/2040

(i),(n)

675‌

248‌

Allegro

CLO

VI

Ltd

2.88%,

01/17/2031

(i)

250‌

246‌

1.00

x

3

Month

USD

LIBOR

+

2.75%

American

Homes

4

Rent

2014-SFR2

Trust

5.15%,

10/17/2036

(i)

280‌

301‌

6.23%,

10/17/2036

(i)

695‌

759‌

American

Homes

4

Rent

2014-SFR3

Trust

6.42%,

12/17/2036

(i)

900‌

992‌

American

Homes

4

Rent

2015-SFR1

5.64%,

04/17/2052

(i)

1,045‌

1,133‌

Arbys

Funding

LLC

3.24%,

07/30/2050

(i)

312‌

327‌

ArrowMark

Colorado

Holdings

2.83%,

07/15/2029

(i)

250‌

1.00

x

3

Month

USD

LIBOR

+

2.70%

Ascentium

Equipment

Receivables

2017-2

Trust

2.87%,

08/10/2022

(i)

80‌

Avery

Point

VII

CLO

Ltd

6.73%,

01/15/2028

(i)

1,400‌

1,392‌

1.00

x

3

Month

USD

LIBOR

+

6.60%

Barings

Clo

Ltd

2019-IV

2.93%,

01/15/2033

(i)

250‌

1.00

x

3

Month

USD

LIBOR

+

2.80%

Battalion

Clo

XIV

Ltd

6.81%,

04/20/2032

(i)

250‌

1.00

x

3

Month

USD

LIBOR

+

6.68%

Bayview

Opportunity

Master

Fund

V

Trust

2020-RN3

3.23%,

09/25/2035

(i),(n)

1‌

Blackbird

Capital

Aircraft

Lease

Securitization

Ltd

2016-1

4.21%,

12/16/2041

(i),(n)

182‌

183‌

Canyon

Capital

CLO

2019-2

Ltd

7.28%,

10/15/2032

(i)

250‌

1.00

x

3

Month

USD

LIBOR

+

7.15%

CARLYLE

US

CLO

2017-4

Ltd

2.93%,

01/15/2030

(i)

280‌

271‌

1.00

x

3

Month

USD

LIBOR

+

2.80%

CLI

Funding

VIII

LLC

1.64%,

02/18/2046

(i)

380‌

379‌

DB

Master

Finance

LLC

4.35%,

05/20/2049

(i)

206‌

226‌

Diamond

Resorts

Owner

Trust

6.07%,

10/22/2029

(i)

48‌

Diamond

Resorts

Owner

Trust

2018-1

4.53%,

01/21/2031

(i)

161‌

166‌

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

140

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Other

Asset

Backed

Securities

(continued)

Diamond

Resorts

Owner

Trust

2019-1

3.53%,

02/20/2032

(i)

$

152‌

$

157‌

Domino's

Pizza

Master

Issuer

LLC

2.66%,

04/25/2051

(i)

219‌

228‌

4.12%,

07/25/2047

(i)

511‌

551‌

Dryden

33

Senior

Loan

Fund

7.10%,

04/15/2029

(i)

700‌

695‌

1.00

x

3

Month

USD

LIBOR

+

6.97%

GCA2014

Holdings

Ltd

-

Class

E

0.00%,

01/05/2030

(e),(g),(i)

1,030‌

13‌

Hardee's

Funding

LLC

3.98%,

12/20/2050

(i)

184‌

196‌

Hayfin

Kingsland

XI

Ltd

7.03%,

07/20/2032

(i)

110‌

109‌

1.00

x

3

Month

USD

LIBOR

+

6.90%

Hilton

Grand

Vacations

Trust

2018-A

4.00%,

02/25/2032

(i)

46‌

48‌

HPEFS

Equipment

Trust

2.79%,

07/22/2030

(i)

500‌

517‌

HPEFS

Equipment

Trust

2020-1

2.26%,

02/20/2030

(i)

115‌

118‌

Kestrel

Aircraft

Funding

Ltd

4.25%,

12/15/2038

(i)

332‌

331‌

Legacy

Mortgage

Asset

Trust

2019-GS3

3.75%,

04/25/2059

(i),(n)

294‌

296‌

Legacy

Mortgage

Asset

Trust

2019-GS4

3.44%,

05/25/2059

(i),(n)

148‌

149‌

Madison

Park

Funding

XXVI

Ltd

3.13%,

07/29/2030

(i)

255‌

253‌

1.00

x

3

Month

USD

LIBOR

+

3.00%

Madison

Park

Funding

XXX

LTD

2.63%,

04/15/2029

(i)

255‌

253‌

1.00

x

3

Month

USD

LIBOR

+

2.50%

Octagon

Investment

Partners

XVI

Ltd

5.88%,

07/17/2030

(i)

500‌

482‌

1.00

x

3

Month

USD

LIBOR

+

5.75%

Octagon

Investment

Partners

XXII

Ltd

2.04%,

01/22/2030

(i)

250‌

1.00

x

3

Month

USD

LIBOR

+

1.90%

OHA

Credit

Funding

3

LTD

6.40%,

07/02/2035

(i)

250‌

249‌

1.00

x

3

Month

USD

LIBOR

+

6.25%

OHA

Credit

Funding

4

Ltd

6.28%,

10/22/2032

(i)

255‌

1.00

x

3

Month

USD

LIBOR

+

6.10%

OHA

Loan

Funding

2013-1

Ltd

3.19%,

07/23/2031

(i)

275‌

277‌

1.00

x

3

Month

USD

LIBOR

+

3.05%

OneMain

Financial

Issuance

Trust

2015-3

4.16%,

11/20/2028

(i)

790‌

793‌

OneMain

Financial

Issuance

Trust

2019-1

4.22%,

02/14/2031

(i)

620‌

623‌

OZLM

XXIII

Ltd

3.88%,

04/15/2034

(i)

390‌

1.00

x

3

Month

USD

LIBOR

+

3.75%

Parallel

2017-1

Ltd

2.13%,

07/20/2029

(i)

305‌

301‌

1.00

x

3

Month

USD

LIBOR

+

2.00%

Parallel

2018-2

Ltd

2.28%,

10/20/2031

(i)

480‌

478‌

1.00

x

3

Month

USD

LIBOR

+

2.15%

Planet

Fitness

Master

Issuer

LLC

3.86%,

12/05/2049

(i)

271‌

280‌

Progress

Residential

2019-SFR1

Trust

4.47%,

08/17/2035

(i)

420‌

425‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Other

Asset

Backed

Securities

(continued)

Sierra

Timeshare

2020-2

Receivables

Funding

LLC

3.51%,

07/20/2037

(i)

$

60‌

$

62‌

S-Jets

2017-1

Ltd

3.97%,

08/15/2042

(i)

706‌

699‌

Sprite

2017-1

Ltd

5.75%,

12/15/2037

(i)

240‌

213‌

VOLT

XCIII

LLC

1.89%,

02/27/2051

(i),(n)

241‌

242‌

VOLT

XCVI

LLC

2.12%,

03/27/2051

(i),(n)

152‌

Wendy's

Funding

LLC

4.08%,

06/15/2049

(i)

80‌

87‌

York

CLO-7

Ltd

3.94%,

01/22/2033

(i)

295‌

1.00

x

3

Month

USD

LIBOR

+

3.80%

$

19,111‌

Pharmaceuticals

-

0.35%

Astrazeneca

Finance

LLC

0.70%,

05/28/2024

510‌

511‌

Teva

Pharmaceutical

Finance

Netherlands

II

BV

6.00%,

01/31/2025

EUR

190‌

243‌

Teva

Pharmaceutical

Finance

Netherlands

III

BV

4.10%,

10/01/2046

$

1,420‌

1,235‌

$

1,989‌

Pipelines

-

0.34%

Energy

Transfer

LP

3.75%,

05/15/2030

65‌

70‌

Galaxy

Pipeline

Assets

Bidco

Ltd

2.16%,

03/31/2034

(i)

975‌

970‌

2.16%,

03/31/2034

300‌

299‌

2.94%,

09/30/2040

(i)

205‌

208‌

Genesis

Energy

LP

/

Genesis

Energy

Finance

Corp

5.63%,

06/15/2024

250‌

246‌

Hess

Midstream

Operations

LP

4.25%,

02/15/2030

(i)

50‌

51‌

Targa

Resources

Partners

LP

/

Targa

Resources

Partners

Finance

Corp

4.00%,

01/15/2032

(i)

55‌

58‌

$

1,902‌

Real

Estate

-

0.17%

China

Evergrande

Group

8.75%,

06/28/2025

200‌

72‌

Sunac

China

Holdings

Ltd

6.65%,

08/03/2024

200‌

197‌

7.25%,

06/14/2022

200‌

202‌

WeWork

Cos

Inc

7.88%,

05/01/2025

(i)

366‌

361‌

Yuzhou

Group

Holdings

Co

Ltd

6.35%,

01/13/2027

200‌

150‌

$

982‌

Regional

Authority

-

0.11%

Provincia

de

Buenos

Aires/Government

Bonds

37.90%,

04/12/2025

(i)

ARS

11,045‌

103‌

Argentina

Deposit

Rates

Badlar

Private

Banks

ARS

30

to

35

Days

+

3.75%

37.99%,

05/31/2022

51,665‌

511‌

Argentina

Deposit

Rates

Badlar

Private

Banks

ARS

30

to

35

Days

+

3.83%

$

614‌

REITs

-

0.08%

Ladder

Capital

Finance

Holdings

LLLP

/

Ladder

Capital

Finance

Corp

4.25%,

02/01/2027

(i)

$

135‌

136‌

National

Health

Investors

Inc

3.00%,

02/01/2031

35‌

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

141

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

REITs

(continued)

SBA

Communications

Corp

3.13%,

02/01/2029

(i)

$

260‌

$

255‌

$

426‌

Retail

-

0.20%

1011778

BC

ULC

/

New

Red

Finance

Inc

3.88%,

01/15/2028

(i)

50‌

51‌

4.38%,

01/15/2028

(i)

255‌

259‌

Carvana

Co

5.63%,

10/01/2025

(i)

125‌

130‌

5.88%,

10/01/2028

(i)

145‌

151‌

Lithia

Motors

Inc

3.88%,

06/01/2029

(i)

75‌

79‌

Murphy

Oil

USA

Inc

3.75%,

02/15/2031

(i)

40‌

Yum!

Brands

Inc

3.63%,

03/15/2031

230‌

236‌

4.63%,

01/31/2032

160‌

174‌

$

1,120‌

Semiconductors

-

0.11%

Broadcom

Inc

4.30%,

11/15/2032

450‌

515‌

Microchip

Technology

Inc

0.98%,

09/01/2024

(i)

90‌

$

605‌

Software

-

0.17%

MSCI

Inc

3.25%,

08/15/2033

(i)

60‌

62‌

Playtika

Holding

Corp

4.25%,

03/15/2029

(i)

40‌

salesforce.com

Inc

0.63%,

07/15/2024

345‌

346‌

VMware

Inc

1.00%,

08/15/2024

510‌

512‌

$

960‌

Sovereign

-

9.25%

1MDB

Global

Investments

Ltd

4.40%,

03/09/2023

1,800‌

1,818‌

Angolan

Government

International

Bond

9.50%,

11/12/2025

1,325‌

1,478‌

Argentine

Republic

Government

International

Bond

0.50%,

07/09/2030

(n)

3,100‌

1,210‌

1.13%,

07/09/2035

(n)

2,476‌

864‌

Bonos

de

la

Tesoreria

de

la

Republica

en

pesos

5.00%,

10/01/2028

(i)

CLP

325,000‌

432‌

Brazil

Notas

do

Tesouro

Nacional

Serie

F

10.00%,

01/01/2025

BRL

2,283‌

447‌

10.00%,

01/01/2027

19,200‌

3,715‌

Colombia

Government

International

Bond

5.63%,

02/26/2044

$

1,100‌

1,228‌

6.13%,

01/18/2041

1,075‌

1,255‌

Colombian

TES

5.75%,

11/03/2027

COP

10,300,000‌

2,644‌

7.75%,

09/18/2030

6,700,000‌

1,871‌

Egypt

Government

International

Bond

8.50%,

01/31/2047

$

925‌

971‌

Export-Import

Bank

of

Korea

4.89%,

08/09/2023

(i)

INR

41,100‌

563‌

6.75%,

08/09/2022

7,100‌

99‌

Ghana

Government

International

Bond

8.13%,

03/26/2032

$

325‌

Indonesia

Treasury

Bond

5.13%,

04/15/2027

IDR

18,950,000‌

1,322‌

7.00%,

05/15/2027

10,950,000‌

827‌

9.00%,

03/15/2029

9,550,000‌

790‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Sovereign

(continued)

Ivory

Coast

Government

International

Bond

4.88%,

01/30/2032

EUR

1,150‌

$

1,384‌

4.88%,

01/30/2032

(i)

1,100‌

1,324‌

5.88%,

10/17/2031

200‌

258‌

Mexican

Bonos

6.75%,

03/09/2023

MXN

8,884‌

450‌

8.50%,

05/31/2029

42,600‌

2,321‌

Mexico

Government

International

Bond

3.77%,

05/24/2061

$

405‌

386‌

4.28%,

08/14/2041

335‌

359‌

Montenegro

Government

International

Bond

2.88%,

12/16/2027

(i)

EUR

650‌

735‌

2.88%,

12/16/2027

300‌

339‌

Nigeria

Government

International

Bond

7.14%,

02/23/2030

$

1,375‌

1,446‌

Oman

Government

International

Bond

6.75%,

01/17/2048

925‌

945‌

7.00%,

01/25/2051

200‌

208‌

Republic

of

South

Africa

Government

Bond

8.88%,

02/28/2035

ZAR

71,500‌

4,529‌

Republic

of

South

Africa

Government

International

Bond

5.75%,

09/30/2049

$

1,475‌

1,484‌

Romanian

Government

International

Bond

2.00%,

01/28/2032

EUR

675‌

804‌

2.00%,

04/14/2033

(i)

900‌

1,058‌

2.75%,

04/14/2041

(i)

775‌

904‌

3.50%,

04/03/2034

350‌

470‌

3.62%,

05/26/2030

(i)

400‌

546‌

Russian

Federal

Bond

-

OFZ

6.10%,

07/18/2035

RUB

91,700‌

1,143‌

7.25%,

05/10/2034

258,000‌

3,576‌

Senegal

Government

International

Bond

5.38%,

06/08/2037

EUR

450‌

544‌

5.38%,

06/08/2037

(i)

350‌

423‌

6.75%,

03/13/2048

$

200‌

208‌

Ukraine

Government

Bond

9.84%,

02/15/2023

UAH

2,750‌

99‌

11.20%,

07/20/2022

16,200‌

600‌

14.91%,

10/12/2022

8,350‌

320‌

15.97%,

04/19/2023

4,000‌

157‌

Ukraine

Government

International

Bond

1.26%,

05/31/2040

(n)

$

875‌

996‌

6.88%,

05/21/2029

(i)

975‌

1,029‌

6.88%,

05/21/2029

200‌

211‌

7.25%,

03/15/2033

200‌

212‌

7.75%,

09/01/2027

450‌

500‌

Zambia

Government

International

Bond

0.00%,

04/14/2024

(e)

425‌

336‌

$

52,163‌

Student

Loan

Asset

Backed

Securities

-

0.23%

Navient

Private

Education

Refi

Loan

Trust

2018-A

3.68%,

02/18/2042

(i)

140‌

144‌

Navient

Private

Education

Refi

Loan

Trust

2020-F

2.69%,

07/15/2069

(i)

100‌

104‌

SLM

Private

Credit

Student

Loan

Trust

2003-A

3.58%,

06/15/2032

189‌

1.00

x

US

28

Day

Auction

Rate

+

0.00%

SLM

Private

Credit

Student

Loan

Trust

2003-B

2.96%,

03/15/2033

300‌

1.00

x

US

28

Day

Auction

Rate

+

0.00%

2.96%,

03/15/2033

50‌

1.00

x

US

28

Day

Auction

Rate

+

0.00%

SMB

Private

Education

Loan

Trust

2015-C

3.50%,

09/15/2043

(i)

100‌

105‌

SMB

Private

Education

Loan

Trust

2018-C

4.00%,

11/17/2042

(i)

100‌

107‌

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

142

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Student

Loan

Asset

Backed

Securities

(continued)

Sofi

Professional

Loan

Program

2016-A

LLC

3.57%,

01/26/2038

(i)

$

108‌

$

109‌

SoFi

Professional

Loan

Program

2020-ATrust

3.12%,

05/15/2046

(i)

160‌

165‌

$

1,273‌

Supranational

Bank

-

0.16%

Africa

Finance

Corp

2.88%,

04/28/2028

(i)

800‌

810‌

International

Finance

Corp

5.85%,

11/25/2022

INR

8,170‌

114‌

$

924‌

Telecommunications

-

0.97%

C&W

Senior

Financing

DAC

7.50%,

10/15/2026

(i)

$

800‌

834‌

7.50%,

10/15/2026

300‌

313‌

CommScope

Inc

7.13%,

07/01/2028

(i)

455‌

477‌

CommScope

Technologies

LLC

5.00%,

03/15/2027

(i)

190‌

187‌

Kenbourne

Invest

SA

6.88%,

11/26/2024

(i)

355‌

376‌

MTN

Mauritius

Investments

Ltd

5.37%,

02/13/2022

1,060‌

1,075‌

T-Mobile

USA

Inc

3.38%,

04/15/2029

445‌

470‌

3.50%,

04/15/2031

220‌

234‌

VEON

Holdings

BV

3.38%,

11/25/2027

(i)

1,300‌

1,323‌

3.38%,

11/25/2027

200‌

204‌

$

5,493‌

Transportation

-

0.03%

Indian

Railway

Finance

Corp

Ltd

2.80%,

02/10/2031

(i)

200‌

196‌

TOTAL

BONDS

$

163,012‌

CONVERTIBLE

BONDS

-

0.79%

Principal

Amount

(000's)

Value

(000's)

Airlines

-

0.09%

JetBlue

Airways

Corp

0.50%,

04/01/2026

(i)

$

60‌

$

59‌

Southwest

Airlines

Co

1.25%,

05/01/2025

295‌

430‌

$

489‌

Biotechnology

-

0.14%

BioMarin

Pharmaceutical

Inc

0.60%,

08/01/2024

125‌

130‌

1.25%,

05/15/2027

495‌

498‌

Guardant

Health

Inc

0.00%,

11/15/2027

(e),(i)

60‌

70‌

Ionis

Pharmaceuticals

Inc

0.00%,

04/01/2026

(e),(i)

75‌

74‌

Livongo

Health

Inc

0.88%,

06/01/2025

5‌

7‌

$

779‌

Entertainment

-

0.02%

Penn

National

Gaming

Inc

2.75%,

05/15/2026

30‌

106‌

Healthcare

-

Services

-

0.06%

Teladoc

Health

Inc

1.25%,

06/01/2027

340‌

360‌

Internet

-

0.20%

Expedia

Group

Inc

0.00%,

02/15/2026

(e),(i)

85‌

89‌

Palo

Alto

Networks

Inc

0.38%,

06/01/2025

470‌

754‌

Twitter

Inc

0.00%,

03/15/2026

(e),(i)

130‌

123‌

CONVERTIBLE

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Internet

(continued)

Uber

Technologies

Inc

0.00%,

12/15/2025

(e),(i)

$

170‌

$

158‌

$

1,124‌

Leisure

Products

&

Services

-

0.01%

Peloton

Interactive

Inc

0.00%,

02/15/2026

(e),(i)

95‌

86‌

Media

-

0.17%

DISH

Network

Corp

0.00%,

12/15/2025

(e),(i)

15‌

18‌

2.38%,

03/15/2024

140‌

136‌

3.38%,

08/15/2026

770‌

803‌

$

957‌

Real

Estate

-

0.08%

Deutsche

Wohnen

SE

0.33%,

07/26/2024

EUR

300‌

469‌

Software

-

0.02%

Splunk

Inc

1.13%,

06/15/2027

$

110‌

TOTAL

CONVERTIBLE

BONDS

$

4,480‌

CREDIT

LINKED

STRUCTURED

NOTES

-

1.13%

Principal

Amount

(000's)

Value

(000's)

Sovereign

-

1.13%

China

Government

Bond

-

JPMorgan

Chase

3.27%,

11/19/2030

(i)

CNY

40,100‌

$

6,392‌

TOTAL

CREDIT

LINKED

STRUCTURED

NOTES

$

6,392‌

SENIOR

FLOATING

RATE

INTERESTS

-

0.20%

Principal

Amount

(000's)

Value

(000's)

Airlines

-

0.02%

United

Airlines

Inc

4.50%,

04/14/2028

(o)

$

95‌

$

95‌

1

Month

USD

LIBOR

+

3.75%

Commercial

Services

-

0.03%

CoreLogic

Inc

4.00%,

04/14/2028

(o)

160‌

159‌

1

Month

USD

LIBOR

+

3.50%

Entertainment

-

0.00%

Deluxe

Entertainment

Services

Group

Inc

0.00%,

PIK

0.00%,

03/25/2024

(e),(g),(o),(p)

75‌

32‌

1

Month

USD

LIBOR

+

6.50%

Deluxe

Entertainment

Services

Group

Inc

-

Escrow

0.00%,

09/25/2024

(e),(g),(o)

822‌

—‌

1

Month

USD

LIBOR

+

6.50%

$

32‌

Home

Furnishings

-

0.02%

Weber-Stephen

Products

LLC

4.00%,

10/20/2027

(o)

102‌

1

Month

USD

LIBOR

+

3.25%

Insurance

-

0.01%

AmWINS

Group

Inc

3.00%,

02/17/2028

(o)

43‌

42‌

1

Month

USD

LIBOR

+

2.25%

Lodging

-

0.03%

Hilton

Grand

Vacations

Borrower

LLC

3.50%,

08

/02/2028

(o)

115‌

1

Month

USD

LIBOR

+

3.00%

Motel

6

Operating

LP

0.00%,

08/19/2026

(o),(q)

45‌

$

160‌

Media

-

0.04%

Directv

Financing

LLC

5.75%,

07/22/2027

(o)

100‌

1

Month

USD

LIBOR

+

5.00%

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

143

SENIOR

FLOATING

RATE

INTERESTS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Media

(continued)

Ziggo

BV

3.00%,

01/17/2029

(o)

EUR

115‌

$

134‌

3

Month

Euro

Interbank

Offered

Rate

+

3.00%

$

234‌

Pharmaceuticals

-

0.01%

Jazz

Financing

Lux

Sarl

4.00%,

04/21/2028

(o)

$

90‌

1

Month

USD

LIBOR

+

3.50%

Software

-

0.04%

Playtika

Holding

Corp

2.84%,

03/05/2028

(o)

214‌

1

Month

USD

LIBOR

+

2.75%

TOTAL

SENIOR

FLOATING

RATE

INTERESTS

$

1,128‌

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

-

0.69%

Principal

Amount

(000's)

Value

(000's)

U.S.

Treasury

Bill

-

0.69%

0.03%,

02/24/2022

(r)

$

1,525‌

$

1,525‌

0.07%,

08/11/2022

(r)

1,040‌

1,039‌

0.12%,

11/04/2021

(r),(s)

1,300‌

$

3,864‌

TOTAL

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

$

3,864‌

TOTAL

PURCHASED

OPTIONS

-

0.11%

$

597‌

Total

Investments

$

538,118‌

Other

Assets

and

Liabilities

- 4.54%

25,584‌

TOTAL

NET

ASSETS

-

100.00%

$

563,702‌

(a)

All

or

a

portion

of

this

security

is

owned

by

the

GMS

Cayman

Corporation,

which

is

a

100%

owned

subsidiary

of

the

fund.

(b)

Current

yield

shown

is

as

of

period

end.

(c)

Security

or

a

portion

of

the

security

was

pledged

as

collateral

for

short

sales.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$36,118

or

6.41%

of

net

assets.

(d)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(e)

Non-income

producing

security

(f)

Security

or

a

portion

of

the

security

was

pledged

to

cover

margin

requirements

for

swap

and/or

swaption

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$47,000

or

8.34%

of

net

assets.

(g)

The

value

of

these

investments

was

determined

using

significant

unobservable

inputs,

in

good

faith

by

the

Manager,

under

procedures

established

and

periodically

reviewed

by

the

Board

of

Directors.

(h)

Restricted

Security.

Please

see

Restricted

Securities

sub-schedule

for

additional

information.

(i)

Security

exempt

from

registration

under

Rule

144A

of

the

Securities

Act

of

1933.

These

securities

may

be

resold

in

transactions

exempt

from

registration,

normally

to

qualified

institutional

buyers.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$83,180

or

14.76%

of

net

assets.

(j)

Perpetual

security.

Perpetual

securities

pay

an

indefinite

stream

of

interest,

but

they

may

be

called

by

the

issuer

at

an

earlier

date.

Date

shown,

if

any,

reflects

the

date

or

final

legal

maturity

date.

Rate

shown

is

as

of

period

end.

(k)

Security

purchased

on

a

when-issued

basis.

(l)

Rate

shown

is

as

of

period

end.

The

rate

may

be

a

variable

or

floating

rate

or

a

fixed

rate

which

may

convert

to

a

variable

or

floating

rate

in

the

future.

(m)

Security

is

a

contingent

convertible

security,

("CoCo").

CoCo's

are

hybrid

debt

securities

that

may

convert

to

equity

or

have

their

principal

written

down

upon

occurrence

of

certain

"triggers".

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$2,287

or

0.41%

of

net

assets.

(n)

Certain

variable

rate

securities

are

not

based

on

a

published

reference

rate

and

spread

but

are

determined

by

the

issuer

or

agent

and

are

based

on

current

market

conditions. These

securities

do

not

indicate

a

reference

rate

and

spread

in

their

description.

Rate

shown

is

the

rate

in

effect

as

of

period

end.

(o)

Rate

information

disclosed

is

based

on

an

average

weighted

rate

of

the

underlying

tranches

as

of

period

end.

(p)

Payment

in

kind;

the

issuer

has

the

option

of

paying

additional

securities

in

lieu

of

cash.

(q)

This

Senior

Floating

Rate

Note

will

settle

after

2021,

at

which

time

the

interest

rate

will

be

determined.

(r)

Rate

shown

is

the

discount

rate

of

the

original

purchase.

(s)

Security

or

a

portion

of

the

security

was

pledged

to

cover

margin

requirements

for

futures

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$440

or

0.08%

of

net

assets.

Portfolio

Summary (unaudited)

Sector

Percent

Money

Market

Funds

18.14‌%

Government

11.34‌%

Financial

11.06‌%

Consumer,

Non-cyclical

10.08‌%

Technology

7.56‌%

Communications

7.55‌%

Industrial

7.41‌%

Consumer,

Cyclical

7.05‌%

Energy

4.08‌%

Asset

Backed

Securities

4.04‌%

Basic

Materials

3.23‌%

Mortgage

Securities

1.48‌%

Utilities

1.35‌%

Diversified

0.85‌%

Investment

Companies

0.13‌%

Purchased

Options

0.11‌%

Investments

Sold

Short

(12.75‌)%

Other

Assets

and

Liabilities

17.29‌%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

Purchases

Sales

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

$

89,036‌

$

844,392‌

$

840,069‌

$

93,359‌

$

89,036‌

$

844,392‌

$

840,069‌

$

93,359‌

Income

Realized

Gain/Loss

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

Loss

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

144

Restricted

Securities

Security

Name

Acquisition

Date

Cost

Value

Percent

of

Net

Assets

Element

Comm

Aviation

06/15/2015

$

2,800‌

$

349‌

0.06%

WE

Company

Preferred

D-1

0.00%

12/08/2014

45‌

20‌

0.00%

WE

Company

Preferred

D-2

0.00%

12/08/2014

64‌

28‌

0.01%

Total

$

397‌

0.07%

Amounts

in

thousands.

Options

Purchased

Options

Outstanding

Counterparty

Shares

Notional

Amount

Exercise

Price

Expiration

Date

Upfront

Payments

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Put

-

Dell

Technologies

Inc

N/A

29‌

$

3‌

$

85.00‌

10/18/2021

$

3‌

$

2‌

$

(1‌)

Put

-

Deutche

Telekom

AG

N/A

367‌

EUR

37‌

EUR

17.40‌

09/20/2021

3‌

4‌

1‌

Put

-

Dupont

De

Nemours

Inc

N/A

14‌

$

1‌

$

67.50‌

09/20/2021

1‌

—‌

(1‌)

Put

-

Hartford

Financial

N/A

37‌

4‌

$

60.00‌

09/20/2021

1‌

—‌

(1‌)

Put

-

Koninklijke

KPN

NV

N/A

424‌

EUR

42‌

EUR

2.40‌

09/20/2021

—‌

Put

-

S&P

500

Index

N/A

18‌

$

2‌

$

3,750.00‌

09/20/2021

175‌

3‌

(172‌)

Put

-

S&P

500

Index

N/A

9‌

1‌

$

3,875.00‌

12/17/2021

138‌

39‌

(99‌)

Put

-

S&P

500

Index

N/A

13‌

1‌

$

3,800.00‌

03/21/2022

203‌

109‌

(94‌)

Put

-

S&P

500

Index

N/A

10‌

1‌

$

4,050.00‌

12/20/2021

96‌

59‌

(37‌)

Put

-

S&P

500

Index

N/A

21‌

2‌

$

4,100.00‌

06/20/2022

399‌

380‌

(19‌)

Put

-

Vodafone

Group

PLC-SP

ADR

N/A

348‌

35‌

$

15.00‌

09/20/2021

3‌

1‌

(2‌)

Total

$

1,022‌

$

597‌

$

(425‌)

Written

Options

Outstanding

Counterparty

Shares

Notional

Amount

Exercise

Price

Expiration

Date

Upfront

Receipts

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Call

-

Apple

Inc

N/A

1‌

$

—‌

$

160.00‌

10/18/2021

$

—‌

$

—‌

$

—‌

Call

-

Applied

Materials

Inc

N/A

2‌

—‌

$

145.00‌

10/18/2021

(1‌)

—‌

Call

-

Blackstone

Group

Inc/The

N/A

2‌

—‌

$

125.00‌

10/18/2021

—‌

(1‌)

Call

-

Bristol-Myers

Squibb

Co

N/A

2‌

—‌

$

70.00‌

10/18/2021

—‌

Call

-

Comcast

Corp

N/A

3‌

—‌

$

62.50‌

10/18/2021

—‌

Call

-

ConocoPhillips

N/A

1‌

—‌

$

60.00‌

10/18/2021

—‌

Call

-

Dell

Technologies

Inc

N/A

29‌

3‌

$

95.00‌

10/18/2021

(15‌)

(14‌)

1‌

Call

-

Deutche

Telekom

AG

N/A

461‌

EUR

46‌

EUR

18.40‌

09/20/2021

(30‌)

(7‌)

23‌

Call

-

Dupont

De

Nemours

Inc

N/A

14‌

$

1‌

$

75.00‌

09/20/2021

(2‌)

(1‌)

1‌

Call

-

Fox

Corp

N/A

7‌

1‌

$

40.00‌

10/18/2021

—‌

Call

-

Hartford

Financial

N/A

37‌

4‌

$

65.00‌

09/20/2021

(8‌)

(11‌)

(3‌)

Call

-

Home

Depot

Inc/The

N/A

1‌

—‌

$

345.00‌

10/18/2021

—‌

Call

-

Iron

Mountain

Inc

N/A

4‌

—‌

$

47.50‌

10/18/2021

(1‌)

—‌

Call

-

JPMorgan

Chase

&

Co

N/A

1‌

—‌

$

165.00‌

10/18/2021

—‌

Call

-

Koninklijke

KPN

NV

N/A

424‌

EUR

42‌

EUR

2.70‌

09/20/2021

(3‌)

—‌

Call

-

Morgan

Stanley

N/A

3‌

$

—‌

$

110.00‌

10/18/2021

(1‌)

—‌

Call

-

Nike

Inc

N/A

1‌

—‌

$

180.00‌

10/18/2021

—‌

Call

-

Nvidia

Corp

N/A

1‌

—‌

$

247.50‌

10/18/2021

—‌

Call

-

NXP

Semiconductors

NV

N/A

1‌

—‌

$

230.00‌

10/18/2021

—‌

Call

-

Oracle

Corp

N/A

3‌

—‌

$

95.00‌

10/18/2021

—‌

Call

-

Pfizer

Inc

N/A

3‌

—‌

$

55.00‌

10/18/2021

—‌

Call

-

Procter

&

Gamble

Co/The

N/A

1‌

—‌

$

150.00‌

10/18/2021

—‌

Call

-

Ross

Stores

Inc

N/A

1‌

—‌

$

135.00‌

10/18/2021

—‌

Call

-

Social

Capital

Hedosophia

Holdings

Corp.

VI

N/A

9‌

1‌

$

10.00‌

11/22/2021

—‌

Call

-

Texas

Instruments

Inc

N/A

1‌

—‌

$

200.00‌

10/18/2021

—‌

Call

-

TJX

Cos

Inc

N/A

2‌

—‌

$

80.00‌

10/18/2021

—‌

Call

-

Vodafone

Group

PLC-SP

ADR

N/A

348‌

35‌

$

17.00‌

09/20/2021

(13‌)

(12‌)

1‌

Put

-

S&P

500

Index

N/A

21‌

2‌

$

3,750.00‌

06/20/2022

(263‌)

(251‌)

12‌

Put

-

S&P

500

Index

N/A

13‌

1‌

$

3,475.00‌

03/21/2022

(131‌)

(69‌)

62‌

Put

-

S&P

500

Index

N/A

10‌

1‌

$

3,625.00‌

12/20/2021

(47‌)

(28‌)

19‌

Put

-

S&P

500

Index

N/A

9‌

1‌

$

3,500.00‌

12/17/2021

(78‌)

(20‌)

58‌

Total

$

(593‌)

$

(420‌)

$

173‌

Amounts

in

thousands

except

contracts/shares.

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

145

Futures

Description

and

Expiration

Date

Type

Notional

Amount

Value

and

Unrealized

Appreciation/(Depreciation)

90

Day

Eurodollar;

December

2022

Long

28‌

$

6,971‌

$

2‌

90

Day

Short

Sterling;

December

2022

Short

366‌

62,579‌

43‌

Australia

10

Year

Bond;

September

2021

Long

122‌

13,013‌

68‌

Brent

Crude;

November

2021

(a)

Long

41‌

2,937‌

82‌

CAC40

Index;

September

2021

Long

55‌

4,337‌

(57‌)

Canada

10

Year

Bond;

December

2021

Long

183‌

21,196‌

(6‌)

Cocoa;

December

2021

(a)

Short

21‌

507‌

(17‌)

Coffee

'C';

December

2021

(a)

Long

26‌

1,910‌

102‌

Corn;

December

2021

(a)

Long

83‌

2,217‌

(102‌)

Cotton

No.2;

December

2021

(a)

Long

20‌

925‌

36‌

DAX

Index;

September

2021

Long

29‌

13,525‌

88‌

DJ

Euro

Stoxx

50;

September

2021

Long

243‌

11,998‌

137‌

DJ

Euro

Stoxx

50;

September

2021

Short

138‌

6,813‌

(75‌)

Dollar

Index;

September

2021

Long

18‌

1,667‌

(6‌)

E-Mini

DJIA

Index;

September

2021

Long

45‌

7,952‌

176‌

Euribor;

December

2022

Long

244‌

72,368‌

9‌

Euro

Bond

10

Year

Bond;

September

2021

Short

12‌

2,486‌

(54‌)

Euro

Bond

10

Year

Bond;

September

2021

Long

64‌

13,258‌

9‌

Euro

Schatz;

September

2021

Long

162‌

21,477‌

(3‌)

Euro-Bobl

5

Year;

September

2021

Long

179‌

28,526‌

(70‌)

FTSE100

Index;

September

2021

Long

126‌

12,293‌

55‌

FTSE100

Index;

September

2021

Short

30‌

2,927‌

(8‌)

Gasoline

RBOB;

October

2021

(a)

Long

21‌

1,889‌

57‌

Gold

100

oz;

December

2021

(a)

Short

23‌

4,182‌

(65‌)

Hang

Seng

Index;

September

2021

Short

3‌

497‌

(9‌)

Japan

10

Year

Bond

TSE;

September

2021

Long

10‌

13,831‌

(10‌)

Japan

Topix

Index;

September

2021

Long

10‌

1,786‌

8‌

KC

HRW

Wheat;

December

2021

(a)

Long

37‌

1,317‌

(23‌)

LME

Copper;

December

2021

(a)

Long

9‌

2,142‌

21‌

LME

Copper;

September

2021

(a)

Short

—‌

(83‌)

LME

PRI

Alum;

December

2021

(a)

Long

38‌

2,581‌

99‌

LME

PRI

Alum;

September

2021

(a)

Short

—‌

30‌

LME

Zinc;

December

2021

(a)

Long

22‌

1,653‌

2‌

LME

Zinc;

September

2021

(a)

Short

—‌

24‌

Low

Sulphur

Gasoline;

October

2021

(a)

Long

38‌

2,287‌

106‌

Mini

Japan

10

Year

Bond;

September

2021

Long

16‌

2,213‌

(2‌)

Nasdaq

100

E-Mini;

September

2021

Long

40‌

12,466‌

566‌

Natural

Gas;

October

2021

(a)

Long

73‌

3,195‌

280‌

Nikkei

225

OSE;

September

2021

Short

21‌

5,379‌

(96‌)

NY

Harb

ULSD;

October

2021

(a)

Long

25‌

2,237‌

65‌

Russell

2000

Emini;

September

2021

Short

123‌

13,968‌

180‌

Russell

2000

Emini;

September

2021

Long

19‌

2,158‌

36‌

S&P

500

Emini;

September

2021

Long

55‌

12,431‌

237‌

S&P

500

Emini;

September

2021

Short

5‌

1,130‌

(34‌)

S&P

Mid

400

Emini;

September

2021

Short

1‌

275‌

(3‌)

S&P/TSX

60

Index;

September

2021

Short

3‌

585‌

(15‌)

Silver;

December

2021

(a)

Short

23‌

2,761‌

(27‌)

Soybean

Meal;

December

2021

(a)

Short

29‌

1,002‌

80‌

Soybean

Oil;

December

2021

(a)

Long

26‌

917‌

(35‌)

Soybean;

November

2021

(a)

Long

37‌

2,391‌

(129‌)

Sugar

#11;

October

2021

(a)

Long

61‌

1,355‌

126‌

UK

10

Year

Gilt;

December

2021

Long

122‌

21,510‌

(114‌)

US

10

Year

Note;

December

2021

Short

83‌

11,077‌

(42‌)

US

10

Year

Note;

December

2021

Long

212‌

28,292‌

91‌

US

10

Year

Ultra

Note;

December

2021

Short

29‌

4,292‌

(15‌)

US

2

Year

Note;

December

2021

Long

5‌

1,102‌

1‌

US

5

Year

Note;

December

2021

Long

136‌

16,826‌

48‌

US

Long

Bond;

December

2021

Short

20‌

3,259‌

(12‌)

US

Long

Bond;

December

2021

Long

116‌

18,904‌

60‌

US

Long

Bond;

December

2021

Short

36‌

5,867‌

(10‌)

US

Ultra

Bond;

December

2021

Short

26‌

5,129‌

(35‌)

Wheat;

December

2021

(a)

Long

51‌

1,842‌

3‌

WTI

Crude;

October

2021

(a)

Long

46‌

3,151‌

15‌

Total

$

1,785‌

Amounts

in

thousands

except

(a)

All

or

a

portion

of

this

security

is

owned

by

the

GMS

Cayman

Corporation,

which

is

a

100%

owned

subsidiary

of

the

fund.

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

146

Foreign

Currency

Unrealized

Appreciation/(Depreciation)

Counterparty

Settlement

Date

Currency

to

Accept

Currency

to

Deliver

Asset

Liability

Bank

of

America

NA

09/17/2021

AUD

1,004‌

$

746‌

$

4‌

$

(15‌)

Bank

of

America

NA

09/17/2021

GBP

9,111‌

$

12,856‌

—‌

(331‌)

Bank

of

America

NA

09/17/2021

CAD

13,425‌

$

11,051‌

—‌

(411‌)

Bank

of

America

NA

09/17/2021

EUR

4,432‌

$

5,409‌

—‌

(177‌)

Bank

of

America

NA

09/17/2021

JPY

1,307,995‌

$

11,878‌

34‌

(19‌)

Bank

of

America

NA

09/17/2021

MXN

103,156‌

$

5,155‌

3‌

(34‌)

Bank

of

America

NA

09/17/2021

NZD

9,693‌

$

6,813‌

43‌

(25‌)

Bank

of

America

NA

09/17/2021

CHF

1,978‌

$

2,193‌

1‌

(33‌)

Bank

of

America

NA

09/17/2021

$

572‌

MXN

11,636‌

—‌

(7‌)

Bank

of

America

NA

09/17/2021

$

8,833‌

CHF

8,126‌

—‌

(46‌)

Bank

of

America

NA

09/17/2021

$

42,329‌

JPY

4,642,048‌

146‌

(19‌)

Bank

of

America

NA

09/17/2021

$

20,084‌

CAD

25,169‌

194‌

(62‌)

Bank

of

America

NA

09/17/2021

$

12,100‌

NZD

17,473‌

17‌

(226‌)

Bank

of

America

NA

09/17/2021

$

21,308‌

GBP

15,461‌

99‌

(46‌)

Bank

of

America

NA

09/17/2021

$

33,570‌

EUR

28,412‌

91‌

(76‌)

Bank

of

America

NA

09/17/2021

$

16,320‌

AUD

22,086‌

209‌

(45‌)

Barclays

Bank

PLC

10/26/2021

$

136‌

EUR

115‌

—‌

BNP

Paribas

09/15/2021

$

490‌

CAD

591‌

21‌

—‌

BNP

Paribas

09/15/2021

$

3,299‌

GBP

2,334‌

92‌

—‌

BNP

Paribas

09/22/2021

$

368‌

EUR

314‌

—‌

(3‌)

Citigroup

Inc

09/15/2021

$

4,925‌

EUR

4,043‌

152‌

—‌

Citigroup

Inc

09/30/2021

CZK

63,100‌

$

2,904‌

29‌

—‌

Citigroup

Inc

09/30/2021

HUF

589,000‌

$

1,985‌

10‌

—‌

Citigroup

Inc

09/30/2021

PLN

5,675‌

$

1,456‌

26‌

—‌

Citigroup

Inc

09/30/2021

$

554‌

CNY

3,600‌

—‌

(2‌)

Citigroup

Inc

09/30/2021

$

2,881‌

EUR

2,450‌

—‌

(13‌)

HSBC

Securities

Inc

09/22/2021

$

245‌

GBP

178‌

—‌

HSBC

Securities

Inc

09/28/2021

$

9,409‌

EUR

8,005‌

—‌

(47‌)

HSBC

Securities

Inc

09/30/2021

INR

146,000‌

$

1,961‌

34‌

—‌

HSBC

Securities

Inc

09/30/2021

RUB

144,200‌

$

1,951‌

9‌

—‌

HSBC

Securities

Inc

09/30/2021

KRW

4,487,000‌

$

3,842‌

29‌

—‌

HSBC

Securities

Inc

09/30/2021

$

2,668‌

COP

10,300,000‌

—‌

(63‌)

HSBC

Securities

Inc

09/30/2021

$

4,272‌

RUB

317,300‌

—‌

(43‌)

HSBC

Securities

Inc

09/30/2021

$

475‌

CLP

372,000‌

—‌

(5‌)

JPMorgan

Chase

09/03/2021

CNY

3,435‌

$

530‌

2‌

—‌

JPMorgan

Chase

09/20/2021

$

608‌

EUR

518‌

—‌

(3‌)

JPMorgan

Chase

09/28/2021

$

1,353‌

EUR

1,155‌

—‌

(12‌)

JPMorgan

Chase

09/29/2021

$

134‌

EUR

114‌

—‌

(1‌)

JPMorgan

Chase

09/30/2021

PLN

5,700‌

$

1,487‌

2‌

—‌

JPMorgan

Chase

09/30/2021

$

4,262‌

ZAR

64,100‌

—‌

(136‌)

JPMorgan

Chase

09/30/2021

$

2,328‌

MXN

47,400‌

—‌

(23‌)

JPMorgan

Chase

09/30/2021

$

2,144‌

BRL

11,500‌

—‌

(71‌)

JPMorgan

Chase

09/30/2021

$

7,765‌

CNY

50,450‌

—‌

(31‌)

JPMorgan

Chase

10/28/2021

$

10‌

HKD

76‌

—‌

JPMorgan

Chase

11/26/2021

$

517‌

EUR

441‌

—‌

(5‌)

JPMorgan

Chase

12/13/2021

$

123‌

GBP

90‌

—‌

(1‌)

JPMorgan

Chase

12/15/2021

$

745‌

EUR

636‌

—‌

(8‌)

JPMorgan

Chase

12/30/2021

$

130‌

AUD

178‌

—‌

(1‌)

JPMorgan

Chase

04/20/2022

$

244‌

GBP

178‌

—‌

Merrill

Lynch

09/02/2021

BRL

1,191‌

$

226‌

4‌

—‌

Merrill

Lynch

09/02/2021

$

222‌

BRL

1,191‌

—‌

(8‌)

Merrill

Lynch

10/26/2021

$

225‌

EUR

190‌

—‌

Merrill

Lynch

12/02/2021

$

223‌

BRL

1,191‌

—‌

(4‌)

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

147

Foreign

Currency

(continued)

Unrealized

Appreciation/(Depreciation)

Counterparty

Settlement

Date

Currency

to

Accept

Currency

to

Deliver

Asset

Liability

State

Street

Financial

Global

Markets

09/15/2021

$

488‌

CAD

589‌

$

21‌

$

—‌

Total

$

1,272‌

$

(2,052‌)

Amounts

in

thousands.

Exchange

Cleared

Credit

Default

Swaps

Buy

Protection

Reference

Entity

Implied

Credit

Spread

as

of

(a)

(Pay)/

Receive

Fixed

Rate

Payment

Frequency

Maturity

Date

Notional

Amount

Upfront

Payments/

(Receipts)

Unrealized

Appreciation/

(Depreciation)

Fair

Value

CDX.NA.HY.36

N/A

(5.00)%

Quarterly

06/20/2026

$

4,850‌

$

(470‌)

$

(3‌)

$

(473‌)

ITRAXX.35

N/A

(5.00)%

Quarterly

06/20/2026

EUR

2,450‌

(336‌)

(17‌)

(353‌)

Total

$

(806‌)

$

(20‌)

$

(826‌)

Amounts

in

thousands.

(a)

Implied

credit

spreads,

represented

in

absolute

terms,

used

in

determining

the

market

value

of

credit

default

swap

agreements

on

corporate

issues

or

sovereign

issues

as

of

period

end

serve

as

an

indicator

of

the

current

status

of

the

payment/performance

risk

and

represent

the

likelihood

or

risk

of

default

for

the

credit

derivative.

The

implied

credit

spread

of

a

particular

referenced

entity

reflects

the

cost

of

buying/selling

protection

and

may

include

upfront

payments

required

to

be

made

to

enter

into

the

agreement.

Wider

credit

spreads

represent

a

deterioration

of

the

referenced

entity's

credit

soundness

and

a

greater

likelihood

or

risk

of

default

or

other

credit

event

occurring

as

defined

under

the

terms

of

the

agreement.

Exchange

Cleared

Interest

Rate

Swaps

Floating

Rate

Index

(Pay)/

Receive

Floating

Rate

Fixed

Rate

Payment

Frequency

Paid

by

Fund

Payment

Frequency

Received

by

Fund

Effective

Date

(a)

Maturity

Date

Notional

Amount

Unrealized

Appreciation/

(Depreciation)

Upfront

Payments/

(Receipts)

Fair

Value

6

Month

Warsaw

Interbank

Offered

Rate

Receive

1.40%

Annual

Semiannual

N/A

02/09/2031

PLN

7,200‌

$

61‌

$

—‌

$

61‌

6

Month

Warsaw

Interbank

Offered

Rate

Pay

1.40%

Semiannual

Annual

N/A

02/09/2031

3,700‌

(9‌)

(22‌)

(31‌)

6

Month

Warsaw

Interbank

Offered

Rate

Receive

1.90%

Annual

Semiannual

N/A

06/16/2031

16,400‌

(53‌)

7‌

(46‌)

6

Month

Warsaw

Interbank

Offered

Rate

Receive

1.40%

Annual

Semiannual

N/A

02/09/2031

4,500‌

(13‌)

51‌

38‌

6

Month

Warsaw

Interbank

Offered

Rate

Receive

1.90%

Annual

Semiannual

N/A

06/16/2031

1,000‌

(4‌)

1‌

(3‌)

6

Month

Warsaw

Interbank

Offered

Rate

Pay

1.90%

Semiannual

Annual

N/A

06/16/2031

4,000‌

18‌

(7‌)

11‌

6

Month

Warsaw

Interbank

Offered

Rate

Pay

1.90%

Semiannual

Annual

N/A

06/16/2031

4,000‌

22‌

(11‌)

11‌

Total

$

22‌

$

19‌

$

41‌

Amounts

in

thousands.

(a)

Forward

swap.

Total

Return

Equity

Basket

Swaps

Counterparty

Fund

Pays

Fund

Receives

Payment

Frequency

Expiration

Date

Notional

Amount

Upfront

Payments/

(Receipts)

Value

and

Unrealized

Appreciation/(Depreciation)

Asset

-----

Liability

JPMorgan

Chase

Floating

rate

based

on

Overnight

Bank

Funding

Rate

plus/less

spread

Total

return

on

a

custom

basket

of

long

and

short

securities

traded

in

foreign

currencies

but

settle

in

USD

Monthly

08/31/2022-

10/04/2022

$

4,448‌

$

—‌

$

—‌

$

(11‌)

Morgan

Stanley

&

Co

(a)

Floating

rate

based

on

1

Day

Federal

Funds

Rate

plus/less

spread

Total

return

on

a

custom

basket

of

long

and

short

securities

traded

in

USD

Monthly

07/29/2026

97,007‌

—‌

(607‌)

Total

$

101,455‌

$

—‌

$

—‌

$

(618‌)

The

expiration

dates

are

measured

from

the

commencement

of

investment

in

each

underlying

swap

position.

The

fund

pays

a

floating

rate

based

on

the

reference

rate

plus/less

a

spread.

The

spread

is

negotiated

at

the

security

level

and

is

usually

similar

within

a

region

but

may

vary

depending

on

how

difficult

it

is

to

borrow

the

security.

Notional

Amount

represents

the

total

absolute

value

of

the

underlying

securities.

Top

Underlying

Securities

includes

the

50

largest

components

and

any

other

components

where

the

notional

exceeds

1%

of

the

notional

amount

of

the

index

or

custom

basket.

Amounts

in

thousands.

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

148

Description

Shares

Notional

Amount

%

of

Total

Absolute

Notional

Amount

Walmart

Inc

6,236

$

924

0.95%

DuPont

de

Nemours

Inc

12,217

904

0.93%

Pool

Corp

(1,697)

(839

)

(0.86)%

Intel

Corp

14,883

805

0.83%

Perrigo

Co

PLC

(18,928)

(775

)

(0.80)%

Equinix

Inc

(910)

(768

)

(0.79)%

CH

Robinson

Worldwide

Inc

(8,459)

(762

)

(0.79)%

Teledyne

Technologies

Inc

(1,628)

(754

)

(0.78)%

Hormel

Foods

Corp

(15,827)

(721

)

(0.74)%

Jack

Henry

&

Associates

Inc

(3,901)

(688

)

(0.71)%

JPMorgan

Chase

&

Co

4,256

681

0.70%

Pioneer

Natural

Resources

Co

(4,530)

(678

)

(0.70)%

Viatris

Inc

(46,118)

(675

)

(0.70)%

Dominion

Energy

Inc

8,617

671

0.69%

Organon

&

Co

19,223

651

0.67%

Catalent

Inc

(4,947)

(645

)

(0.67)%

Marathon

Oil

Corp

54,570

641

0.66%

Nielsen

Holdings

PLC

28,787

618

0.64%

CarMax

Inc

(4,865)

(609

)

(0.63)%

Clorox

Co/The

(3,552)

(597

)

(0.62)%

Procter

&

Gamble

Co/The

4,188

596

0.62%

McCormick

&

Co

Inc/MD

(6,875)

(593

)

(0.61)%

EOG

Resources

Inc

8,771

592

0.61%

Henry

Schein

Inc

(7,825)

(591

)

(0.61)%

Merck

&

Co

Inc

7,750

591

0.61%

Leggett

&

Platt

Inc

(12,194)

(590

)

(0.61)%

ConocoPhillips

(10,250)

(569

)

(0.59)%

Diamondback

Energy

Inc

(7,363)

(568

)

(0.58)%

State

Street

Corp

(6,096)

(566

)

(0.58)%

Corning

Inc

13,798

552

0.57%

Hess

Corp

7,959

547

0.56%

Rollins

Inc

(13,903)

(541

)

(0.56)%

Western

Union

Co/The

24,880

538

0.56%

Devon

Energy

Corp

(17,987)

(532

)

(0.55)%

Exelon

Corp

10,788

529

0.55%

McDonald's

Corp

2,223

528

0.55%

IDEX

Corp

(2,326)

(521

)

(0.54)%

ABIOMED

Inc

(1,427)

(519

)

(0.54)%

Constellation

Brands

Inc

2,438

515

0.53%

Lamb

Weston

Holdings

Inc

(7,885)

(514

)

(0.53)%

Franklin

Resources

Inc

15,726

510

0.53%

Enphase

Energy

Inc

(2,926)

(508

)

(0.52)%

Lockheed

Martin

Corp

1,411

508

0.52%

TransDigm

Group

Inc

(834)

(507

)

(0.52)%

Northern

Trust

Corp

(4,242)

(503

)

(0.52)%

Phillips

66

(6,980)

(496

)

(0.51)%

Colgate-Palmolive

Co

6,338

494

0.51%

Boeing

Co/The

(2,243)

(492

)

(0.51)%

Digital

Realty

Trust

Inc

(2,997)

(491

)

(0.51)%

Etsy

Inc

(2,237)

(484

)

(0.50)%

(a)

Top

Underlying

Securities

GOTEBSUSD

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

149

Total

Return

Swaps

Counterparty

Reference

Entity

Pay/Receive

Positive

Return

Financing

Rate

Payment

Frequency

Expiration

Date

Notional

Amount

Upfront

Payments/

(Receipts)

Value

and

Unrealized

Appreciation/

(Depreciation)

Asset

----

Liability

HSBC

Securities

Inc

Egypt

Treasury

Bills,

0.00%,

09/22/2021

36,000,000

Receive

3

Month

USD

LIBOR

+

0.80%

Quarterly

09/22/2021

$

2,147‌

$

—‌

$

129‌

$

—‌

HSBC

Securities

Inc

Egypt

Treasury

Bills,

0.00%,

10/19/2021

5,000,000

Receive

3

Month

USD

LIBOR

+

0.80%

Quarterly

10/20/2021

301‌

—‌

13‌

—‌

JPMorgan

Chase

Ghana

Government

Bond,

19.25%,

12/19/2023

4,500,000

Receive

3

Month

USD

LIBOR

+

0.80%

Quarterly

12/19/2023

804‌

—‌

(3‌)

JPMorgan

Chase

Ghana

Government

Bond,

19.50%,

07/09/2024

900,000

Receive

3

Month

USD

LIBOR

+

0.80%

Quarterly

07/09/2024

155‌

—‌

5‌

—‌

JPMorgan

Chase

Ghana

Treasury

Note,

17.60%,

02/20/2023

3,100,000

Receive

3

Month

USD

LIBOR

+

0.80%

Quarterly

02/21/2023

504‌

—‌

21‌

—‌

Total

$

—‌

$

168‌

$

(3‌)

Amounts

in

thousands

except

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

150

Short

Sales

Outstanding

COMMON

STOCKS

-

(12.67)%

Shares

Value

(000's)

Advertising

-

(0.06)%

Hakuhodo

DY

Holdings

Inc

23,100‌

$

364‌

Aerospace

&

Defense

-

(0.10)%

Dassault

Aviation

SA

174‌

196‌

General

Dynamics

Corp

833‌

167‌

Safran

SA

597‌

75‌

TransDigm

Group

Inc

301‌

183‌

$

621‌

Agriculture

-

(0.11)%

Archer-Daniels-Midland

Co

10,757‌

645‌

Airlines

-

(0.23)%

Air

Canada

5,800‌

113‌

ANA

Holdings

Inc

9,400‌

223‌

Delta

Air

Lines

Inc

4,777‌

193‌

Japan

Airlines

Co

Ltd

21,600‌

460‌

Southwest

Airlines

Co

6,208‌

309‌

$

1,298‌

Automobile

Manufacturers

-

(0.09)%

General

Motors

Co

3,474‌

170‌

Stellantis

NV

17,648‌

353‌

$

523‌

Automobile

Parts

&

Equipment

-

(0.36)%

Aptiv

PLC

991‌

151‌

BorgWarner

Inc

3,572‌

152‌

Continental

AG

2,455‌

330‌

Denso

Corp

4,400‌

308‌

Koito

Manufacturing

Co

Ltd

6,300‌

385‌

Lear

Corp

1,817‌

291‌

Stanley

Electric

Co

Ltd

3,500‌

87‌

Toyota

Industries

Corp

3,500‌

295‌

$

1,999‌

Banks

-

(0.18)%

Credit

Suisse

Group

AG

38,585‌

409‌

FinecoBank

Banca

Fineco

SpA

22,137‌

408‌

SVB

Financial

Group

433‌

242‌

$

1,059‌

Beverages

-

(0.25)%

Boston

Beer

Co

Inc/The

205‌

117‌

Constellation

Brands

Inc

2,004‌

423‌

Keurig

Dr

Pepper

Inc

9,230‌

329‌

Molson

Coors

Beverage

Co

3,159‌

150‌

Monster

Beverage

Corp

1,868‌

182‌

Remy

Cointreau

SA

913‌

180‌

$

1,381‌

Biotechnology

-

(0.24)%

Alnylam

Pharmaceuticals

Inc

735‌

148‌

Argenx

SE

652‌

218‌

Biogen

Inc

387‌

131‌

BioMarin

Pharmaceutical

Inc

4,912‌

414‌

Corteva

Inc

8,145‌

358‌

Horizon

Therapeutics

Plc

1,016‌

110‌

$

1,379‌

Building

Materials

-

(0.19)%

Carrier

Global

Corp

4,488‌

259‌

CRH

PLC

4,727‌

250‌

Investment

AB

Latour

10,394‌

362‌

ROCKWOOL

International

A/S

446‌

236‌

$

1,107‌

Chemicals

-

(0.64)%

Air

Products

and

Chemicals

Inc

1,407‌

379‌

Akzo

Nobel

NV

2,968‌

366‌

Albemarle

Corp

1,477‌

350‌

DuPont

de

Nemours

Inc

3,702‌

274‌

Ecolab

Inc

1,358‌

306‌

International

Flavors

&

Fragrances

Inc

4,284‌

649‌

LANXESS

AG

1,916‌

140‌

Mosaic

Co/The

5,100‌

164‌

Nippon

Sanso

Holdings

Corp

12,700‌

308‌

RPM

International

Inc

3,529‌

290‌

COMMON

STOCKS

(continued)

Shares

Value

(000’s)

Chemicals

(continued)

Umicore

SA

5,199‌

$

342‌

$

3,568‌

Commercial

Services

-

(0.57)%

Afterpay

Ltd

2,415‌

235‌

Amadeus

IT

Group

SA

1,799‌

110‌

Ashtead

Group

PLC

2,844‌

222‌

Atlantia

SpA

7,235‌

136‌

GMO

Payment

Gateway

Inc

1,400‌

184‌

IHS

Markit

Ltd

773‌

93‌

S&P

Global

Inc

3,837‌

1,703‌

Transurban

Group

31,280‌

324‌

United

Rentals

Inc

365‌

129‌

Worldline

SA/France

1,003‌

89‌

$

3,225‌

Computers

-

(0.10)%

Atos

SE

2,244‌

117‌

Fujitsu

Ltd

1,000‌

184‌

NEC

Corp

3,250‌

171‌

Obic

Co

Ltd

600‌

114‌

$

586‌

Consumer

Products

-

(0.04)%

Kimberly-Clark

Corp

1,598‌

220‌

Cosmetics

&

Personal

Care

-

(0.20)%

Essity

AB

11,004‌

353‌

Procter

&

Gamble

Co/The

3,574‌

509‌

Shiseido

Co

Ltd

3,900‌

258‌

$

1,120‌

Distribution

&

Wholesale

-

(0.04)%

Copart

Inc

1,622‌

234‌

Diversified

Financial

Services

-

(0.45)%

Apollo

Global

Management

Inc

13,586‌

812‌

Hong

Kong

Exchanges

&

Clearing

Ltd

6,000‌

379‌

Intercontinental

Exchange

Inc

2,803‌

335‌

Japan

Exchange

Group

Inc

6,700‌

160‌

Magellan

Financial

Group

Ltd

4,337‌

137‌

SBI

Holdings

Inc/Japan

4,700‌

114‌

St

James's

Place

PLC

18,900‌

419‌

Tokyo

Century

Corp

4,400‌

252‌

$

2,608‌

Electric

-

(0.29)%

Ameren

Corp

2,570‌

225‌

Consolidated

Edison

Inc

2,983‌

225‌

EDP

-

Energias

de

Portugal

SA

33,655‌

185‌

Emera

Inc

6,100‌

288‌

NextEra

Energy

Inc

3,555‌

299‌

PPL

Corp

6,458‌

190‌

Xcel

Energy

Inc

3,962‌

272‌

$

1,684‌

Electrical

Components

&

Equipment

-

(0.07)%

Generac

Holdings

Inc

302‌

132‌

Prysmian

SpA

7,725‌

291‌

$

423‌

Electronics

-

(0.32)%

Ibiden

Co

Ltd

2,100‌

113‌

II-VI

Inc

3,693‌

233‌

Keysight

Technologies

Inc

1,813‌

325‌

TDK

Corp

4,800‌

503‌

Trimble

Inc

5,068‌

477‌

Yokogawa

Electric

Corp

9,600‌

150‌

$

1,801‌

Energy

-

Alternate

Sources

-

(0.09)%

Siemens

Gamesa

Renewable

Energy

SA

16,721‌

496‌

Engineering

&

Construction

-

(0.17)%

ACS

Actividades

de

Construccion

y

Servicios

SA

8,668‌

234‌

Auckland

International

Airport

Ltd

93,747‌

476‌

Ferrovial

SA

3,684‌

107‌

Shimizu

Corp

20,300‌

146‌

$

963‌

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

151

Short

Sales

Outstanding

COMMON

STOCKS

(continued)

Shares

Value

(000’s)

Entertainment

-

(0.43)%

Entain

PLC

15,177‌

$

403‌

Flutter

Entertainment

PLC

492‌

96‌

Live

Nation

Entertainment

Inc

1,124‌

97‌

Oriental

Land

Co

Ltd/Japan

6,950‌

1,051‌

Toho

Co

Ltd/Tokyo

9,500‌

412‌

Vail

Resorts

Inc

1,125‌

343‌

$

2,402‌

Food

-

(0.28)%

Barry

Callebaut

AG

91‌

232‌

Campbell

Soup

Co

4,390‌

183‌

Kerry

Group

PLC

1,536‌

225‌

Kobe

Bussan

Co

Ltd

5,000‌

194‌

Kraft

Heinz

Co/The

8,466‌

305‌

Kroger

Co/The

8,072‌

372‌

Seven

&

i

Holdings

Co

Ltd

2,600‌

113‌

$

1,624‌

Forest

Products

&

Paper

-

(0.04)%

Oji

Holdings

Corp

22,100‌

116‌

Stora

Enso

Oyj

5,989‌

117‌

$

233‌

Gas

-

(0.08)%

Atmos

Energy

Corp

1,972‌

192‌

Toho

Gas

Co

Ltd

5,700‌

266‌

$

458‌

Healthcare

-

Products

-

(0.20)%

10X

Genomics

Inc

887‌

156‌

ABIOMED

Inc

847‌

308‌

Ambu

A/S

5,348‌

169‌

Asahi

Intecc

Co

Ltd

5,300‌

160‌

Carl

Zeiss

Meditec

AG

986‌

218‌

Novocure

Ltd

719‌

96‌

$

1,107‌

Healthcare

-

Services

-

(0.23)%

Catalent

Inc

2,925‌

382‌

DaVita

Inc

972‌

127‌

Fresenius

Medical

Care

AG

&

Co

KGaA

5,808‌

447‌

Ryman

Healthcare

Ltd

31,615‌

345‌

$

1,301‌

Holding

Companies

-

Diversified

-

(0.03)%

Jardine

Matheson

Holdings

Ltd

3,300‌

179‌

Home

Builders

-

(0.03)%

Iida

Group

Holdings

Co

Ltd

7,200‌

183‌

Home

Furnishings

-

(0.05)%

Electrolux

AB

3,756‌

95‌

Whirlpool

Corp

849‌

188‌

$

283‌

Insurance

-

(0.85)%

Aflac

Inc

7,408‌

420‌

Ageas

SA/NV

5,320‌

266‌

American

Financial

Group

Inc/OH

2,436‌

336‌

Aon

PLC

4,289‌

1,230‌

Assurant

Inc

2,643‌

450‌

Equitable

Holdings

Inc

7,073‌

219‌

Erie

Indemnity

Co

679‌

120‌

Intact

Financial

Corp

2,100‌

286‌

Japan

Post

Insurance

Co

Ltd

13,000‌

236‌

Loews

Corp

11,139‌

622‌

Progressive

Corp/The

4,773‌

460‌

Prudential

Financial

Inc

1,401‌

148‌

$

4,793‌

Internet

-

(0.46)%

Adevinta

ASA

-

B

Shares

11,912‌

240‌

Expedia

Group

Inc

1,991‌

288‌

F5

Networks

Inc

1,762‌

359‌

IAC/InterActiveCorp

8,025‌

1,060‌

NortonLifeLock

Inc

392‌

10‌

Rakuten

Group

Inc

25,900‌

271‌

Twitter

Inc

2,321‌

150‌

COMMON

STOCKS

(continued)

Shares

Value

(000’s)

Internet

(continued)

United

Internet

AG

5,660‌

$

245‌

$

2,623‌

Investment

Companies

-

(0.19)%

EXOR

NV

5,095‌

425‌

Industrivarden

AB

-

C

Shares

5,612‌

196‌

Kinnevik

AB

-

B

Shares

2,839‌

111‌

Washington

H

Soul

Pattinson

&

Co

Ltd

13,585‌

354‌

$

1,086‌

Iron

&

Steel

-

(0.09)%

BlueScope

Steel

Ltd

5,302‌

97‌

Hitachi

Metals

Ltd

11,400‌

220‌

Steel

Dynamics

Inc

2,695‌

182‌

$

499‌

Leisure

Products

&

Services

-

(0.06)%

Carnival

Corp

13,694‌

331‌

Lodging

-

(0.37)%

City

Developments

Ltd

58,600‌

297‌

Crown

Resorts

Ltd

37,690‌

256‌

Galaxy

Entertainment

Group

Ltd

85,000‌

545‌

InterContinental

Hotels

Group

PLC

2,233‌

143‌

Las

Vegas

Sands

Corp

7,501‌

335‌

MGM

Resorts

International

5,624‌

240‌

Whitbread

PLC

3,099‌

137‌

Wynn

Resorts

Ltd

1,193‌

121‌

$

2,074‌

Machinery

-

Construction

&

Mining

-

(0.12)%

Hitachi

Construction

Machinery

Co

Ltd

9,100‌

261‌

Komatsu

Ltd

11,500‌

280‌

Siemens

Energy

AG

3,611‌

105‌

$

646‌

Machinery

-

Diversified

-

(0.33)%

Daifuku

Co

Ltd

2,300‌

203‌

Harmonic

Drive

Systems

Inc

3,400‌

188‌

Hexagon

AB

22,334‌

387‌

Ingersoll

Rand

Inc

12,465‌

661‌

KION

Group

AG

3,858‌

413‌

$

1,852‌

Media

-

(0.31)%

Bollore

SA

43,495‌

258‌

Informa

PLC

32,159‌

235‌

Liberty

Broadband

Corp

-

C

Shares

3,593‌

687‌

Pearson

PLC

29,661‌

313‌

Thomson

Reuters

Corp

2,100‌

245‌

$

1,738‌

Metal

Fabrication

&

Hardware

-

(0.04)%

SKF

AB

8,828‌

225‌

Mining

-

(0.31)%

Anglo

American

PLC

3,625‌

153‌

BHP

Group

Ltd

ADR

3,719‌

246‌

Cameco

Corp

18,600‌

344‌

Freeport-McMoRan

Inc

6,942‌

253‌

Ivanhoe

Mines

Ltd

17,300‌

140‌

Northern

Star

Resources

Ltd

42,752‌

304‌

Pan

American

Silver

Corp

5,700‌

148‌

Teck

Resources

Ltd

5,300‌

120‌

$

1,708‌

Miscellaneous

Manufacturers

-

(0.17)%

General

Electric

Co

3,046‌

321‌

JSR

Corp

11,800‌

409‌

Orica

Ltd

24,474‌

234‌

$

964‌

Oil

&

Gas

-

(0.25)%

Cenovus

Energy

Inc

16,900‌

140‌

EOG

Resources

Inc

1,454‌

98‌

Imperial

Oil

Ltd

7,400‌

196‌

Marathon

Petroleum

Corp

2,986‌

177‌

Neste

Oyj

3,679‌

224‌

Occidental

Petroleum

Corp

3,766‌

97‌

Royal

Dutch

Shell

PLC

ADR

3,237‌

129‌

Consolidated

Schedule

of

Investments

Global

Multi-Strategy

Fund

See

accompanying

notes.

152

Short

Sales

Outstanding

COMMON

STOCKS

(continued)

Shares

Value

(000’s)

Oil

&

Gas

(continued)

Suncor

Energy

Inc

14,400‌

$

269‌

$

1,330‌

Pharmaceuticals

-

(0.25)%

Becton

Dickinson

and

Co

403‌

101‌

Hisamitsu

Pharmaceutical

Co

Inc

5,800‌

232‌

Kyowa

Kirin

Co

Ltd

7,500‌

245‌

Merck

KGaA

1,133‌

269‌

Neurocrine

Biosciences

Inc

1,315‌

125‌

Taisho

Pharmaceutical

Holdings

Co

Ltd

7,500‌

437‌

$

1,409‌

Pipelines

-

(0.10)%

Koninklijke

Vopak

NV

4,403‌

191‌

TC

Energy

Corp

3,000‌

142‌

Williams

Cos

Inc/The

9,204‌

227‌

$

560‌

Real

Estate

-

(0.22)%

Deutsche

Wohnen

SE

4,466‌

277‌

Sumitomo

Realty

&

Development

Co

Ltd

6,800‌

220‌

Vonovia

SE

4,423‌

299‌

Wharf

Real

Estate

Investment

Co

Ltd

86,000‌

426‌

$

1,222‌

Retail

-

(0.28)%

CarMax

Inc

2,660‌

333‌

Chipotle

Mexican

Grill

Inc

64‌

122‌

Fast

Retailing

Co

Ltd

500‌

329‌

McDonald's

Holdings

Co

Japan

Ltd

7,300‌

348‌

Nitori

Holdings

Co

Ltd

600‌

112‌

Ryohin

Keikaku

Co

Ltd

14,700‌

315‌

$

1,559‌

Semiconductors

-

(0.62)%

Advanced

Micro

Devices

Inc

11,857‌

1,313‌

Analog

Devices

Inc

5,491‌

895‌

Infineon

Technologies

AG

7,173‌

305‌

IPG

Photonics

Corp

849‌

145‌

Lasertec

Corp

1,700‌

370‌

Marvell

Technology

Inc

5,107‌

312‌

MKS

Instruments

Inc

593‌

87‌

$

3,427‌

Shipbuilding

-

(0.03)%

Wartsila

OYJ

Abp

13,648‌

194‌

Software

-

(0.73)%

Autodesk

Inc

1,230‌

381‌

AVEVA

Group

PLC

7,357‌

419‌

BlackBerry

Ltd

28,500‌

325‌

Cadence

Design

Systems

Inc

965‌

158‌

Ceridian

HCM

Holding

Inc

4,075‌

458‌

Citrix

Systems

Inc

1,265‌

130‌

Cloudflare

Inc

775‌

94‌

Dassault

Systemes

SE

10,609‌

606‌

Koei

Tecmo

Holdings

Co

Ltd

5,620‌

240‌

Lightspeed

Commerce

Inc

1,200‌

133‌

Nexon

Co

Ltd

13,000‌

237‌

Paycom

Software

Inc

508‌

248‌

Splunk

Inc

1,543‌

236‌

Twilio

Inc

393‌

140‌

VMware

Inc

694‌

103‌

Zoom

Video

Communications

Inc

818‌

237‌

$

4,145‌

Telecommunications

-

(0.20)%

BCE

Inc

4,000‌

209‌

Corning

Inc

5,053‌

202‌

Lumen

Technologies

Inc

14,035‌

173‌

TELUS

Corp

9,300‌

214‌

T-Mobile

US

Inc

2,081‌

285‌

$

1,083‌

Toys,

Games

&

Hobbies

-

(0.02)%

Bandai

Namco

Holdings

Inc

1,400‌

97‌

COMMON

STOCKS

(continued)

Shares

Value

(000’s)

Transportation

-

(0.42)%

Canadian

National

Railway

Co

2,300‌

$

271‌

Canadian

National

Railway

Co

1,624‌

191‌

Canadian

Pacific

Railway

Ltd

1,700‌

117‌

Canadian

Pacific

Railway

Ltd

2,900‌

199‌

Keio

Corp

7,400‌

398‌

Keisei

Electric

Railway

Co

Ltd

6,500‌

200‌

MTR

Corp

Ltd

78,500‌

442‌

Nippon

Express

Co

Ltd

1,300‌

88‌

Odakyu

Electric

Railway

Co

Ltd

15,900‌

370‌

$

2,276‌

Water

-

(0.09)%

American

Water

Works

Co

Inc

2,821‌

514‌

TOTAL

COMMON

STOCKS

(proceeds

$66,902)

$

71,429‌

PREFERRED

STOCKS

-

(0.08)%

Shares

Value

(000's)

Automobile

Manufacturers

-

(0.06)%

Porsche

Automobil

Holding

SE

2.21%

3,092‌

$

313‌

Consumer

Products

-

(0.02)%

Henkel

AG

&

Co

KGaA

1.85%

1,453‌

142‌

TOTAL

PREFERRED

STOCKS

(proceeds

$339)

$

455‌

TOTAL

SHORT

SALES

(proceeds

$67,241)

$

71,884‌

Schedule

of

Investments

International

Equity

Index

Fund

See

accompanying

notes.

153

INVESTMENT

COMPANIES

-

3

.57

%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

2

.52

%

iShares

MSCI

EAFE

ETF

389,900‌

$

31,441‌

Money

Market

Funds

-

1

.05

%

BlackRock

Liquidity

FedFund

-

Institutional

Class

0.03%

(a),(b)

3,099,842‌

3,100‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

(a),(b),(c),(d)

10,018,066‌

10,018‌

$

13,118‌

TOTAL

INVESTMENT

COMPANIES

$

44,559‌

COMMON

STOCKS

-

96

.33

%

Shares

Held

Value

(000's)

Advertising

-

0

.24

%

Dentsu

Group

Inc

15,100‌

$

561‌

Hakuhodo

DY

Holdings

Inc

16,200‌

255‌

Publicis

Groupe

SA

15,519‌

1,019‌

WPP

PLC

83,702‌

1,135‌

$

2,970‌

Aerospace

&

Defense

-

1

.07

%

Airbus

SE

(d)

40,975‌

5,605‌

BAE

Systems

PLC

224,353‌

1,753‌

Dassault

Aviation

SA

175‌

198‌

Elbit

Systems

Ltd

1,844‌

268‌

MTU

Aero

Engines

AG

3,713‌

852‌

Rolls-Royce

Holdings

PLC

(d)

581,615‌

917‌

Safran

SA

23,758‌

2,981‌

Thales

SA

7,416‌

753‌

$

13,327‌

Agriculture

-

0

.78

%

British

American

Tobacco

PLC

151,521‌

5,684‌

Imperial

Brands

PLC

65,784‌

1,395‌

Japan

Tobacco

Inc

83,500‌

1,620‌

Swedish

Match

AB

109,824‌

1,015‌

$

9,714‌

Airlines

-

0

.10

%

ANA

Holdings

Inc

(d)

11,000‌

261‌

Deutsche

Lufthansa

AG

(d),(e)

20,775‌

208‌

Japan

Airlines

Co

Ltd

(d)

10,000‌

213‌

Qantas

Airways

Ltd

(d)

64,238‌

238‌

Singapore

Airlines

Ltd

(d)

93,200‌

349‌

$

1,269‌

Apparel

-

2

.24

%

Adidas

AG

13,235‌

4,695‌

Burberry

Group

PLC

28,142‌

721‌

Hermes

International

2,202‌

3,241‌

Kering

SA

5,214‌

4,153‌

LVMH

Moet

Hennessy

Louis

Vuitton

SE

19,297‌

14,295‌

Puma

SE

7,338‌

891‌

$

27,996‌

Automobile

Manufacturers

-

2

.87

%

Bayerische

Motoren

Werke

AG

23,015‌

2,185‌

Daimler

AG

59,491‌

5,018‌

Ferrari

NV

8,763‌

1,901‌

Hino

Motors

Ltd

19,900‌

172‌

Honda

Motor

Co

Ltd

113,400‌

3,432‌

Isuzu

Motors

Ltd

40,400‌

511‌

Mazda

Motor

Corp

(d)

39,500‌

343‌

Nissan

Motor

Co

Ltd

(d)

161,400‌

847‌

Renault

SA

(d)

13,362‌

497‌

Stellantis

NV

141,154‌

2,824‌

Subaru

Corp

42,800‌

792‌

Suzuki

Motor

Corp

25,700‌

1,111‌

Toyota

Motor

Corp

147,500‌

12,846‌

Volkswagen

AG

(e)

2,257‌

755‌

Volvo

AB

-

A

Shares

13,919‌

323‌

Volvo

AB

-

B

Shares

99,371‌

2,250‌

$

35,807‌

Automobile

Parts

&

Equipment

-

0

.85

%

Aisin

Corp

10,300‌

393‌

Bridgestone

Corp

39,600‌

1,823‌

Cie

Generale

des

Etablissements

Michelin

SCA

11,777‌

1,907‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Automobile

Parts

&

Equipment

(continued)

Continental

AG

(d)

7,647‌

$

1,028‌

Denso

Corp

30,200‌

2,114‌

Faurecia

SE

8,157‌

394‌

Koito

Manufacturing

Co

Ltd

7,300‌

446‌

NGK

Insulators

Ltd

17,800‌

295‌

Stanley

Electric

Co

Ltd

9,100‌

227‌

Sumitomo

Electric

Industries

Ltd

52,400‌

700‌

Toyota

Industries

Corp

10,200‌

861‌

Valeo

15,962‌

456‌

$

10,644‌

Banks

-

8

.84

%

ABN

AMRO

Bank

NV

(f)

29,403‌

410‌

Australia

&

New

Zealand

Banking

Group

Ltd

197,789‌

4,003‌

Banco

Bilbao

Vizcaya

Argentaria

SA

463,472‌

3,033‌

Banco

Espirito

Santo

SA

(d),(g)

131,709‌

—‌

Banco

Santander

SA

1,205,313‌

4,444‌

Bank

Hapoalim

BM

78,961‌

679‌

Bank

Leumi

Le-Israel

BM

100,989‌

834‌

Banque

Cantonale

Vaudoise

2,097‌

178‌

Barclays

PLC

1,181,178‌

2,995‌

BNP

Paribas

SA

78,185‌

4,953‌

BOC

Hong

Kong

Holdings

Ltd

257,000‌

778‌

CaixaBank

SA

308,154‌

957‌

Chiba

Bank

Ltd/The

36,800‌

230‌

Commerzbank

AG

(d)

69,640‌

436‌

Commonwealth

Bank

of

Australia

123,315‌

8,985‌

Concordia

Financial

Group

Ltd

75,600‌

293‌

Credit

Agricole

SA

81,094‌

1,170‌

Credit

Suisse

Group

AG

177,296‌

1,878‌

Danske

Bank

A/S

47,944‌

804‌

DBS

Group

Holdings

Ltd

125,600‌

2,785‌

Deutsche

Bank

AG

(d)

143,658‌

1,776‌

DNB

Bank

ASA

(d)

64,659‌

1,365‌

Erste

Group

Bank

AG

19,419‌

775‌

FinecoBank

Banca

Fineco

SpA

42,394‌

781‌

Hang

Seng

Bank

Ltd

53,200‌

951‌

HSBC

Holdings

PLC

1,419,771‌

7,498‌

ING

Groep

NV

271,362‌

3,743‌

Intesa

Sanpaolo

SpA

1,147,986‌

3,249‌

Israel

Discount

Bank

Ltd

(d)

80,909‌

418‌

Japan

Post

Bank

Co

Ltd

28,100‌

246‌

KBC

Group

NV

17,379‌

1,461‌

Lloyds

Banking

Group

PLC

4,932,446‌

2,953‌

Macquarie

Group

Ltd

23,893‌

2,900‌

Mediobanca

Banca

di

Credito

Finanziario

SpA

43,172‌

509‌

Mitsubishi

UFJ

Financial

Group

Inc

849,800‌

4,611‌

Mizrahi

Tefahot

Bank

Ltd

9,758‌

325‌

Mizuho

Financial

Group

Inc

167,780‌

2,351‌

National

Australia

Bank

Ltd

229,286‌

4,623‌

Natwest

Group

PLC

402,336‌

1,175‌

Nordea

Bank

Abp

(d)

225,204‌

2,645‌

Oversea-Chinese

Banking

Corp

Ltd

233,700‌

1,978‌

Raiffeisen

Bank

International

AG

10,289‌

247‌

Resona

Holdings

Inc

148,500‌

574‌

Shizuoka

Bank

Ltd/The

30,900‌

242‌

Skandinaviska

Enskilda

Banken

AB

113,126‌

1,517‌

Societe

Generale

SA

56,351‌

1,774‌

Standard

Chartered

PLC

184,279‌

1,149‌

Sumitomo

Mitsui

Financial

Group

Inc

90,800‌

3,134‌

Sumitomo

Mitsui

Trust

Holdings

Inc

23,544‌

769‌

Svenska

Handelsbanken

AB

101,384‌

1,139‌

Swedbank

AB

62,948‌

1,213‌

UBS

Group

AG

254,824‌

4,251‌

UniCredit

SpA

148,146‌

1,847‌

United

Overseas

Bank

Ltd

82,000‌

1,552‌

Westpac

Banking

Corp

254,997‌

4,797‌

$

110,383‌

Schedule

of

Investments

International

Equity

Index

Fund

See

accompanying

notes.

154

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Beverages

-

1

.99

%

Anheuser-Busch

InBev

SA/NV

52,963‌

$

3,248‌

Asahi

Group

Holdings

Ltd

31,800‌

1,478‌

Budweiser

Brewing

Co

APAC

Ltd

(f)

119,800‌

299‌

Carlsberg

AS

6,980‌

1,219‌

Coca-Cola

Europacific

Partners

PLC

14,226‌

822‌

Coca-Cola

HBC

AG

(d)

13,954‌

505‌

Davide

Campari-Milano

NV

36,335‌

503‌

Diageo

PLC

162,553‌

7,815‌

Endeavour

Group

Ltd/Australia

(d)

93,228‌

498‌

Heineken

Holding

NV

8,009‌

743‌

Heineken

NV

(e)

18,018‌

1,973‌

Ito

En

Ltd

3,700‌

234‌

JDE

Peet's

NV

5,228‌

180‌

Kirin

Holdings

Co

Ltd

57,200‌

1,036‌

Pernod

Ricard

SA

14,563‌

3,066‌

Remy

Cointreau

SA

1,581‌

311‌

Suntory

Beverage

&

Food

Ltd

9,700‌

389‌

Treasury

Wine

Estates

Ltd

50,176‌

462‌

$

24,781‌

Biotechnology

-

0

.83

%

Argenx

SE

(d)

3,188‌

1,064‌

CSL

Ltd

31,636‌

7,195‌

Genmab

A/S

(d)

4,563‌

2,162‌

$

10,421‌

Building

Materials

-

2

.04

%

AGC

Inc

13,500‌

652‌

Cie

de

Saint-Gobain

35,176‌

2,550‌

CRH

PLC

54,479‌

2,886‌

Daikin

Industries

Ltd

17,300‌

4,317‌

Geberit

AG

2,576‌

2,151‌

HeidelbergCement

AG

10,344‌

897‌

Holcim

Ltd

(d)

36,392‌

2,074‌

Investment

AB

Latour

10,291‌

359‌

James

Hardie

Industries

PLC

30,883‌

1,190‌

Kingspan

Group

PLC

10,726‌

1,221‌

Lixil

Corp

18,500‌

538‌

Nibe

Industrier

AB

99,143‌

1,382‌

Rinnai

Corp

2,500‌

269‌

ROCKWOOL

International

A/S

583‌

309‌

Sika

AG

9,856‌

3,551‌

TOTO

Ltd

9,900‌

539‌

Xinyi

Glass

Holdings

Ltd

125,000‌

525‌

$

25,410‌

Chemicals

-

3

.23

%

Air

Liquide

SA

32,930‌

5,902‌

Akzo

Nobel

NV

13,248‌

1,633‌

Arkema

SA

4,268‌

567‌

Asahi

Kasei

Corp

87,300‌

900‌

BASF

SE

63,843‌

4,939‌

Brenntag

SE

10,740‌

1,084‌

Chr

Hansen

Holding

A/S

7,333‌

676‌

Clariant

AG

(d)

14,998‌

316‌

Covestro

AG

(f)

13,430‌

870‌

Croda

International

PLC

9,698‌

1,221‌

EMS-Chemie

Holding

AG

488‌

529‌

Evonik

Industries

AG

14,576‌

492‌

Givaudan

SA

642‌

3,221‌

ICL

Group

Ltd

49,053‌

347‌

Johnson

Matthey

PLC

13,454‌

544‌

Kansai

Paint

Co

Ltd

12,300‌

319‌

Koninklijke

DSM

NV

12,148‌

2,586‌

LANXESS

AG

5,775‌

421‌

Mitsubishi

Chemical

Holdings

Corp

89,000‌

781‌

Mitsubishi

Gas

Chemical

Co

Inc

11,000‌

207‌

Mitsui

Chemicals

Inc

12,800‌

442‌

Nippon

Paint

Holdings

Co

Ltd

(e)

49,500‌

615‌

Nippon

Sanso

Holdings

Corp

10,500‌

255‌

Nissan

Chemical

Corp

8,600‌

482‌

Nitto

Denko

Corp

9,900‌

751‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Chemicals

(continued)

Novozymes

A/S

14,280‌

$

1,154‌

Shin-Etsu

Chemical

Co

Ltd

24,700‌

4,080‌

Solvay

SA

5,152‌

674‌

Sumitomo

Chemical

Co

Ltd

103,600‌

525‌

Symrise

AG

8,944‌

1,273‌

Toray

Industries

Inc

96,500‌

651‌

Tosoh

Corp

18,000‌

327‌

Umicore

SA

13,703‌

902‌

Yara

International

ASA

12,115‌

608‌

$

40,294‌

Commercial

Services

-

3

.04

%

Adecco

Group

AG

10,772‌

599‌

Adyen

NV

(d),(f)

1,374‌

4,441‌

Afterpay

Ltd

(d)

15,091‌

1,468‌

Amadeus

IT

Group

SA

(d)

31,315‌

1,913‌

Ashtead

Group

PLC

31,198‌

2,439‌

Atlantia

SpA

(d)

34,440‌

645‌

Brambles

Ltd

100,452‌

888‌

Bureau

Veritas

SA

20,439‌

679‌

Dai

Nippon

Printing

Co

Ltd

15,500‌

368‌

Edenred

17,141‌

972‌

Experian

PLC

64,172‌

2,831‌

GMO

Payment

Gateway

Inc

2,800‌

367‌

Intertek

Group

PLC

11,219‌

813‌

Nexi

SpA

(d),(f)

30,546‌

637‌

Nihon

M&A

Center

Inc

21,100‌

629‌

Persol

Holdings

Co

Ltd

12,200‌

285‌

Randstad

NV

8,313‌

612‌

Recruit

Holdings

Co

Ltd

94,400‌

5,559‌

RELX

PLC

134,371‌

4,033‌

Rentokil

Initial

PLC

129,238‌

1,032‌

Secom

Co

Ltd

14,600‌

1,107‌

Securitas

AB

21,766‌

362‌

SGS

SA

421‌

1,323‌

Sohgo

Security

Services

Co

Ltd

4,900‌

222‌

TOPPAN

INC

18,100‌

311‌

Transurban

Group

190,321‌

1,970‌

Worldline

SA/France

(d),(f)

16,516‌

1,471‌

$

37,976‌

Computers

-

1

.20

%

Atos

SE

6,882‌

358‌

Bechtle

AG

5,693‌

412‌

Capgemini

SE

11,146‌

2,506‌

Check

Point

Software

Technologies

Ltd

(d)

7,628‌

958‌

Computershare

Ltd

37,749‌

454‌

CyberArk

Software

Ltd

(d)

2,763‌

464‌

Fujitsu

Ltd

13,700‌

2,522‌

Itochu

Techno-Solutions

Corp

6,700‌

207‌

Logitech

International

SA

12,033‌

1,232‌

NEC

Corp

17,100‌

897‌

Nomura

Research

Institute

Ltd

23,343‌

875‌

NTT

Data

Corp

43,800‌

788‌

Obic

Co

Ltd

4,900‌

930‌

Otsuka

Corp

7,800‌

404‌

SCSK

Corp

3,600‌

227‌

Teleperformance

4,084‌

1,807‌

$

15,041‌

Consumer

Products

-

0

.36

%

Henkel

AG

&

Co

KGaA

7,224‌

650‌

Reckitt

Benckiser

Group

PLC

49,585‌

3,785‌

$

4,435‌

Cosmetics

&

Personal

Care

-

2

.13

%

Beiersdorf

AG

7,007‌

850‌

Essity

AB

42,302‌

1,358‌

Kao

Corp

33,500‌

2,024‌

Kose

Corp

2,300‌

278‌

Lion

Corp

15,600‌

265‌

L'Oreal

SA

17,538‌

8,228‌

Pigeon

Corp

8,100‌

235‌

Schedule

of

Investments

International

Equity

Index

Fund

See

accompanying

notes.

155

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Cosmetics

&

Personal

Care

(continued)

Pola

Orbis

Holdings

Inc

6,300‌

$

137‌

Shiseido

Co

Ltd

27,800‌

1,842‌

Unicharm

Corp

28,100‌

1,253‌

Unilever

PLC

182,108‌

10,140‌

$

26,610‌

Distribution

&

Wholesale

-

1

.06

%

Bunzl

PLC

23,427‌

849‌

Ferguson

PLC

15,523‌

2,244‌

ITOCHU

Corp

82,700‌

2,488‌

Marubeni

Corp

108,800‌

866‌

Mitsubishi

Corp

87,800‌

2,642‌

Mitsui

&

Co

Ltd

105,600‌

2,329‌

Sumitomo

Corp

78,300‌

1,103‌

Toyota

Tsusho

Corp

14,800‌

654‌

$

13,175‌

Diversified

Financial

Services

-

1

.66

%

Abrdn

Plc

151,579‌

554‌

Acom

Co

Ltd

27,600‌

107‌

Amundi

SA

(f)

4,226‌

400‌

ASX

Ltd

13,458‌

861‌

Daiwa

Securities

Group

Inc

100,500‌

568‌

Deutsche

Boerse

AG

13,208‌

2,278‌

Futu

Holdings

Ltd

ADR

(d),(e)

3,538‌

337‌

Hargreaves

Lansdown

PLC

24,728‌

514‌

Hong

Kong

Exchanges

&

Clearing

Ltd

83,800‌

5,294‌

Japan

Exchange

Group

Inc

35,500‌

845‌

Julius

Baer

Group

Ltd

15,557‌

1,062‌

London

Stock

Exchange

Group

PLC

22,863‌

2,504‌

Magellan

Financial

Group

Ltd

9,582‌

302‌

Mitsubishi

HC

Capital

Inc

45,900‌

246‌

Nomura

Holdings

Inc

213,600‌

1,031‌

ORIX

Corp

85,000‌

1,586‌

SBI

Holdings

Inc/Japan

16,890‌

409‌

Schroders

PLC

8,642‌

449‌

Singapore

Exchange

Ltd

55,800‌

410‌

St

James's

Place

PLC

37,478‌

830‌

Tokyo

Century

Corp

2,600‌

149‌

$

20,736‌

Electric

-

2

.68

%

AGL

Energy

Ltd

43,307‌

204‌

AusNet

Services

Ltd

132,109‌

187‌

Chubu

Electric

Power

Co

Inc

44,700‌

540‌

CLP

Holdings

Ltd

113,500‌

1,135‌

E.ON

SE

156,055‌

2,059‌

EDP

-

Energias

de

Portugal

SA

192,954‌

1,059‌

EDP

Renovaveis

SA

20,031‌

532‌

Electricite

de

France

SA

32,322‌

438‌

Elia

Group

SA/NV

2,148‌

270‌

Endesa

SA

22,079‌

531‌

Enel

SpA

565,332‌

5,150‌

Engie

SA

126,955‌

1,819‌

Fortum

Oyj

30,873‌

938‌

HK

Electric

Investments

&

HK

Electric

Investments

Ltd

184,000‌

183‌

Iberdrola

SA

411,540‌

5,100‌

Kansai

Electric

Power

Co

Inc/The

49,000‌

492‌

Mercury

NZ

Ltd

47,346‌

222‌

Meridian

Energy

Ltd

89,044‌

329‌

National

Grid

PLC

247,114‌

3,196‌

Origin

Energy

Ltd

122,419‌

396‌

Orsted

AS

(f)

13,150‌

2,091‌

Power

Assets

Holdings

Ltd

96,000‌

602‌

Red

Electrica

Corp

SA

30,088‌

600‌

RWE

AG

44,654‌

1,744‌

SSE

PLC

72,505‌

1,629‌

Terna

-

Rete

Elettrica

Nazionale

97,798‌

774‌

Tohoku

Electric

Power

Co

Inc

29,700‌

227‌

Tokyo

Electric

Power

Co

Holdings

Inc

(d)

106,100‌

279‌

Uniper

SE

6,360‌

252‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Electric

(continued)

Verbund

AG

4,734‌

$

519‌

$

33,497‌

Electrical

Components

&

Equipment

-

1

.16

%

ABB

Ltd

120,563‌

4,460‌

Brother

Industries

Ltd

16,400‌

337‌

Casio

Computer

Co

Ltd

13,400‌

207‌

Legrand

SA

18,590‌

2,133‌

Prysmian

SpA

17,708‌

667‌

Schneider

Electric

SE

37,446‌

6,690‌

$

14,494‌

Electronics

-

1

.58

%

Assa

Abloy

AB

69,668‌

2,229‌

Azbil

Corp

8,600‌

373‌

Halma

PLC

26,390‌

1,090‌

Hirose

Electric

Co

Ltd

2,199‌

366‌

Hoya

Corp

25,800‌

4,166‌

Ibiden

Co

Ltd

7,400‌

398‌

Kyocera

Corp

22,300‌

1,386‌

MINEBEA

MITSUMI

Inc

25,300‌

650‌

Murata

Manufacturing

Co

Ltd

40,000‌

3,298‌

Nidec

Corp

31,100‌

3,553‌

Shimadzu

Corp

16,400‌

735‌

TDK

Corp

9,100‌

954‌

Venture

Corp

Ltd

19,200‌

273‌

Yokogawa

Electric

Corp

15,900‌

249‌

$

19,720‌

Energy

-

Alternate

Sources

-

0

.27

%

Siemens

Gamesa

Renewable

Energy

SA

(d)

16,572‌

491‌

Vestas

Wind

Systems

A/S

70,194‌

2,833‌

$

3,324‌

Engineering

&

Construction

-

1

.20

%

ACS

Actividades

de

Construccion

y

Servicios

SA

17,049‌

460‌

Aena

SME

SA

(d),(f)

5,214‌

834‌

Aeroports

de

Paris

(d)

2,065‌

243‌

Auckland

International

Airport

Ltd

(d)

87,008‌

442‌

Bouygues

SA

15,882‌

665‌

Cellnex

Telecom

SA

(f)

35,415‌

2,424‌

CK

Infrastructure

Holdings

Ltd

45,500‌

276‌

Eiffage

SA

5,929‌

617‌

Ferrovial

SA

33,113‌

959‌

Infrastrutture

Wireless

Italiane

SpA

(f)

23,360‌

278‌

Kajima

Corp

31,200‌

403‌

Keppel

Corp

Ltd

101,300‌

390‌

Lendlease

Corp

Ltd

47,863‌

416‌

Obayashi

Corp

45,100‌

371‌

Shimizu

Corp

38,300‌

275‌

Singapore

Technologies

Engineering

Ltd

108,700‌

304‌

Skanska

AB

23,647‌

682‌

Sydney

Airport

(d)

91,916‌

534‌

Taisei

Corp

13,300‌

416‌

Vinci

SA

37,005‌

3,970‌

$

14,959‌

Entertainment

-

0

.81

%

Aristocrat

Leisure

Ltd

39,947‌

1,326‌

Entain

PLC

(d)

40,691‌

1,081‌

Evolution

AB

(f)

11,808‌

1,906‌

Flutter

Entertainment

PLC

(d)

11,579‌

2,251‌

Genting

Singapore

Ltd

421,000‌

239‌

La

Francaise

des

Jeux

SAEM

(f)

6,639‌

344‌

Oriental

Land

Co

Ltd/Japan

14,000‌

2,118‌

Tabcorp

Holdings

Ltd

154,395‌

538‌

Toho

Co

Ltd/Tokyo

7,800‌

338‌

$

10,141‌

Environmental

Control

-

0

.03

%

Kurita

Water

Industries

Ltd

6,900‌

324‌

Schedule

of

Investments

International

Equity

Index

Fund

See

accompanying

notes.

156

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Food

-

4

.52

%

a2

Milk

Co

Ltd/The

(d)

51,712‌

$

220‌

Ajinomoto

Co

Inc

32,500‌

958‌

Associated

British

Foods

PLC

24,763‌

675‌

Barry

Callebaut

AG

248‌

632‌

Carrefour

SA

42,624‌

849‌

Chocoladefabriken

Lindt

&

Spruengli

AG

-

PC

72‌

847‌

Chocoladefabriken

Lindt

&

Spruengli

AG

-

REG

8‌

977‌

Coles

Group

Ltd

92,719‌

1,224‌

Danone

SA

45,408‌

3,316‌

Etablissements

Franz

Colruyt

NV

3,792‌

212‌

HelloFresh

SE

(d)

11,482‌

1,240‌

ICA

Gruppen

AB

6,992‌

348‌

J

Sainsbury

PLC

116,589‌

487‌

Jeronimo

Martins

SGPS

SA

17,498‌

371‌

Kerry

Group

PLC

11,061‌

1,622‌

Kesko

Oyj

18,985‌

786‌

Kikkoman

Corp

(e)

10,200‌

766‌

Kobe

Bussan

Co

Ltd

9,500‌

370‌

Koninklijke

Ahold

Delhaize

NV

72,687‌

2,452‌

MEIJI

Holdings

Co

Ltd

8,400‌

517‌

Mowi

ASA

30,553‌

818‌

Nestle

SA

200,253‌

25,290‌

NH

Foods

Ltd

5,700‌

221‌

Nisshin

Seifun

Group

Inc

13,695‌

225‌

Nissin

Foods

Holdings

Co

Ltd

4,400‌

342‌

Ocado

Group

PLC

(d)

33,870‌

939‌

Orkla

ASA

52,206‌

466‌

Seven

&

i

Holdings

Co

Ltd

(e)

52,400‌

2,286‌

Tesco

PLC

537,415‌

1,887‌

Toyo

Suisan

Kaisha

Ltd

6,100‌

253‌

WH

Group

Ltd

(f)

666,500‌

578‌

Wilmar

International

Ltd

133,600‌

410‌

Wm

Morrison

Supermarkets

PLC

167,497‌

666‌

Woolworths

Group

Ltd

88,117‌

2,682‌

Yakult

Honsha

Co

Ltd

8,900‌

513‌

$

56,445‌

Food

Service

-

0

.25

%

Compass

Group

PLC

(d)

124,003‌

2,562‌

Sodexo

SA

(d)

6,150‌

509‌

$

3,071‌

Forest

Products

&

Paper

-

0

.42

%

Mondi

PLC

33,751‌

931‌

Oji

Holdings

Corp

56,500‌

296‌

Smurfit

Kappa

Group

PLC

17,103‌

980‌

Stora

Enso

Oyj

40,438‌

794‌

Svenska

Cellulosa

AB

SCA

42,113‌

744‌

UPM-Kymmene

Oyj

37,099‌

1,511‌

$

5,256‌

Gas

-

0

.34

%

Enagas

SA

17,301‌

394‌

Hong

Kong

&

China

Gas

Co

Ltd

778,387‌

1,251‌

Naturgy

Energy

Group

SA

20,220‌

520‌

Osaka

Gas

Co

Ltd

26,000‌

487‌

Snam

SpA

140,165‌

829‌

Toho

Gas

Co

Ltd

5,100‌

238‌

Tokyo

Gas

Co

Ltd

26,100‌

502‌

$

4,221‌

Hand

&

Machine

Tools

-

0

.43

%

Disco

Corp

2,000‌

581‌

Fuji

Electric

Co

Ltd

8,800‌

381‌

Makita

Corp

15,600‌

896‌

Schindler

Holding

AG

-

PC

2,831‌

914‌

Schindler

Holding

AG

-

REG

1,400‌

436‌

Techtronic

Industries

Co

Ltd

95,000‌

2,103‌

$

5,311‌

Healthcare

-

Products

-

2

.20

%

Alcon

Inc

34,734‌

2,861‌

Ambu

A/S

11,646‌

368‌

Asahi

Intecc

Co

Ltd

14,400‌

436‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Healthcare

-

Products

(continued)

Carl

Zeiss

Meditec

AG

2,799‌

$

618‌

Cochlear

Ltd

4,571‌

776‌

Coloplast

A/S

8,259‌

1,431‌

Demant

A/S

(d)

7,512‌

426‌

DiaSorin

SpA

1,751‌

400‌

EssilorLuxottica

SA

19,836‌

3,898‌

Fisher

&

Paykel

Healthcare

Corp

Ltd

40,071‌

935‌

Koninklijke

Philips

NV

63,327‌

2,918‌

Olympus

Corp

81,100‌

1,704‌

QIAGEN

NV

(d)

15,877‌

878‌

Sartorius

Stedim

Biotech

1,923‌

1,166‌

Siemens

Healthineers

AG

(f)

19,600‌

1,363‌

Smith

&

Nephew

PLC

61,099‌

1,170‌

Sonova

Holding

AG

3,806‌

1,467‌

Straumann

Holding

AG

719‌

1,389‌

Sysmex

Corp

11,700‌

1,330‌

Terumo

Corp

44,900‌

1,874‌

$

27,408‌

Healthcare

-

Services

-

0

.94

%

BioMerieux

2,881‌

353‌

Eurofins

Scientific

SE

9,281‌

1,317‌

Fresenius

Medical

Care

AG

&

Co

KGaA

14,251‌

1,096‌

Fresenius

SE

&

Co

KGaA

29,067‌

1,511‌

Lonza

Group

AG

5,177‌

4,378‌

Medibank

Pvt

Ltd

191,426‌

496‌

NMC

Health

PLC

(d),(g)

7,238‌

—‌

Orpea

SA

3,595‌

453‌

PeptiDream

Inc

(d)

6,600‌

233‌

Ramsay

Health

Care

Ltd

12,729‌

639‌

Ryman

Healthcare

Ltd

29,542‌

323‌

Sonic

Healthcare

Ltd

31,560‌

999‌

$

11,798‌

Holding

Companies

-

Diversified

-

0

.19

%

CK

Hutchison

Holdings

Ltd

187,632‌

1,368‌

Jardine

Matheson

Holdings

Ltd

15,039‌

815‌

Swire

Pacific

Ltd

34,000‌

230‌

$

2,413‌

Home

Builders

-

0

.45

%

Barratt

Developments

PLC

70,783‌

720‌

Berkeley

Group

Holdings

PLC

8,455‌

562‌

Daiwa

House

Industry

Co

Ltd

39,400‌

1,201‌

Iida

Group

Holdings

Co

Ltd

10,220‌

259‌

Persimmon

PLC

22,181‌

898‌

Sekisui

Chemical

Co

Ltd

26,300‌

450‌

Sekisui

House

Ltd

42,900‌

855‌

Taylor

Wimpey

PLC

253,430‌

638‌

$

5,583‌

Home

Furnishings

-

1

.06

%

Electrolux

AB

15,678‌

398‌

GN

Store

Nord

AS

8,645‌

651‌

Hoshizaki

Corp

3,700‌

347‌

Panasonic

Corp

153,600‌

1,836‌

Rational

AG

356‌

408‌

SEB

SA

1,925‌

303‌

Sharp

Corp/Japan

14,800‌

195‌

Sony

Group

Corp

87,700‌

9,068‌

$

13,206‌

Insurance

-

4

.63

%

Admiral

Group

PLC

13,421‌

667‌

Aegon

NV

124,377‌

614‌

Ageas

SA/NV

12,172‌

608‌

AIA

Group

Ltd

841,000‌

10,042‌

Allianz

SE

28,658‌

6,728‌

Assicurazioni

Generali

SpA

76,927‌

1,569‌

Aviva

PLC

273,119‌

1,518‌

AXA

SA

134,516‌

3,779‌

Baloise

Holding

AG

3,224‌

514‌

CNP

Assurances

11,932‌

205‌

Dai-ichi

Life

Holdings

Inc

70,900‌

1,403‌

Schedule

of

Investments

International

Equity

Index

Fund

See

accompanying

notes.

157

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Insurance

(continued)

Direct

Line

Insurance

Group

PLC

93,894‌

$

399‌

Gjensidige

Forsikring

ASA

13,902‌

325‌

Hannover

Rueck

SE

4,193‌

772‌

Insurance

Australia

Group

Ltd

171,344‌

654‌

Japan

Post

Holdings

Co

Ltd

(d)

109,500‌

941‌

Japan

Post

Insurance

Co

Ltd

15,600‌

283‌

Legal

&

General

Group

PLC

414,798‌

1,541‌

M&G

PLC

180,715‌

512‌

MS&AD

Insurance

Group

Holdings

Inc

31,000‌

1,004‌

Muenchener

Rueckversicherungs-Gesellschaft

AG

in

Muenchen

9,739‌

2,843‌

NN

Group

NV

18,781‌

974‌

Phoenix

Group

Holdings

PLC

45,145‌

387‌

Prudential

PLC

181,804‌

3,788‌

QBE

Insurance

Group

Ltd

102,536‌

882‌

Sampo

Oyj

34,667‌

1,791‌

SCOR

SE

11,042‌

339‌

Sompo

Holdings

Inc

22,150‌

974‌

Suncorp

Group

Ltd

89,177‌

811‌

Swiss

Life

Holding

AG

2,226‌

1,160‌

Swiss

Re

AG

20,966‌

1,928‌

T&D

Holdings

Inc

37,400‌

455‌

Tokio

Marine

Holdings

Inc

43,700‌

2,138‌

Tryg

A/S

25,028‌

620‌

Zurich

Insurance

Group

AG

10,459‌

4,589‌

$

57,757‌

Internet

-

1

.59

%

Adevinta

ASA

-

B

Shares

(d)

19,044‌

383‌

Auto

Trader

Group

PLC

(f)

67,190‌

581‌

CyberAgent

Inc

28,200‌

516‌

Delivery

Hero

SE

(d),(f)

11,259‌

1,634‌

Iliad

SA

1,031‌

222‌

Just

Eat

Takeaway.com

NV

(d),(f)

12,489‌

1,132‌

Kakaku.com

Inc

9,300‌

289‌

M3

Inc

30,700‌

2,059‌

Mercari

Inc

(d)

7,000‌

345‌

MonotaRO

Co

Ltd

17,500‌

388‌

Prosus

NV

(d)

64,861‌

5,741‌

Rakuten

Group

Inc

60,200‌

630‌

Scout24

AG

(f)

6,082‌

511‌

Sea

Ltd

ADR

(d)

4,788‌

1,620‌

SEEK

Ltd

23,354‌

553‌

Trend

Micro

Inc/Japan

9,300‌

509‌

United

Internet

AG

6,743‌

292‌

Wix.com

Ltd

(d)

3,894‌

865‌

Z

Holdings

Corp

186,100‌

1,210‌

ZOZO

Inc

8,600‌

328‌

$

19,808‌

Investment

Companies

-

0

.65

%

Eurazeo

SE

2,750‌

283‌

EXOR

NV

7,539‌

629‌

Groupe

Bruxelles

Lambert

SA

7,852‌

900‌

Industrivarden

AB

-

A

Shares

7,428‌

273‌

Industrivarden

AB

-

C

Shares

11,101‌

387‌

Investor

AB

126,640‌

3,029‌

Kinnevik

AB

-

B

Shares

(d)

16,816‌

659‌

L

E

Lundbergforetagen

AB

5,283‌

338‌

Melrose

Industries

PLC

304,483‌

703‌

Sofina

SA

1,072‌

474‌

Washington

H

Soul

Pattinson

&

Co

Ltd

(e)

7,489‌

195‌

Wendel

SE

1,868‌

271‌

$

8,141‌

Iron

&

Steel

-

0

.55

%

ArcelorMittal

SA

49,826‌

1,671‌

BlueScope

Steel

Ltd

35,020‌

640‌

Evraz

PLC

35,488‌

289‌

Fortescue

Metals

Group

Ltd

117,708‌

1,794‌

Hitachi

Metals

Ltd

14,900‌

288‌

JFE

Holdings

Inc

34,100‌

553‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Iron

&

Steel

(continued)

Nippon

Steel

Corp

59,477‌

$

1,216‌

voestalpine

AG

8,068‌

366‌

$

6,817‌

Leisure

Products

&

Services

-

0

.21

%

Shimano

Inc

5,200‌

1,526‌

Yamaha

Corp

9,400‌

554‌

Yamaha

Motor

Co

Ltd

20,500‌

522‌

$

2,602‌

Lodging

-

0

.33

%

Accor

SA

(d)

11,810‌

407‌

City

Developments

Ltd

28,500‌

145‌

Crown

Resorts

Ltd

(d)

25,888‌

176‌

Galaxy

Entertainment

Group

Ltd

(d)

151,000‌

968‌

InterContinental

Hotels

Group

PLC

(d)

12,734‌

814‌

Melco

Resorts

&

Entertainment

Ltd

ADR

(d)

14,973‌

206‌

Sands

China

Ltd

(d)

168,800‌

542‌

SJM

Holdings

Ltd

(d)

137,000‌

119‌

Whitbread

PLC

(d)

14,039‌

620‌

Wynn

Macau

Ltd

(d)

108,400‌

122‌

$

4,119‌

Machinery

-

Construction

&

Mining

-

0

.97

%

Epiroc

AB

-

A

Shares

45,808‌

1,005‌

Epiroc

AB

-

B

Shares

27,108‌

515‌

Hitachi

Construction

Machinery

Co

Ltd

7,500‌

215‌

Hitachi

Ltd

67,300‌

3,720‌

Komatsu

Ltd

60,900‌

1,481‌

Mitsubishi

Electric

Corp

126,900‌

1,735‌

Mitsubishi

Heavy

Industries

Ltd

22,300‌

589‌

Sandvik

AB

78,472‌

2,003‌

Siemens

Energy

AG

(d)

27,780‌

806‌

$

12,069‌

Machinery

-

Diversified

-

2

.53

%

Atlas

Copco

AB

-

A

Shares

46,676‌

3,209‌

Atlas

Copco

AB

-

B

Shares

27,125‌

1,571‌

CNH

Industrial

NV

71,128‌

1,176‌

Daifuku

Co

Ltd

7,100‌

627‌

FANUC

Corp

13,400‌

2,919‌

GEA

Group

AG

10,665‌

492‌

Harmonic

Drive

Systems

Inc

3,000‌

166‌

Hexagon

AB

136,938‌

2,375‌

Husqvarna

AB

29,085‌

391‌

Keyence

Corp

13,560‌

8,141‌

KION

Group

AG

5,016‌

537‌

Kone

Oyj

23,626‌

1,960‌

Kubota

Corp

71,500‌

1,477‌

Miura

Co

Ltd

6,100‌

274‌

Nabtesco

Corp

7,900‌

312‌

Omron

Corp

12,900‌

1,216‌

SMC

Corp

4,000‌

2,559‌

Spirax-Sarco

Engineering

PLC

5,128‌

1,137‌

THK

Co

Ltd

8,400‌

194‌

Yaskawa

Electric

Corp

16,700‌

815‌

$

31,548‌

Media

-

0

.50

%

Bollore

SA

61,436‌

364‌

Informa

PLC

(d)

104,479‌

764‌

Pearson

PLC

(e)

52,563‌

554‌

Schibsted

ASA

-

A

Shares

5,083‌

271‌

Schibsted

ASA

-

B

Shares

6,768‌

315‌

Vivendi

SE

49,463‌

1,884‌

Wolters

Kluwer

NV

18,595‌

2,138‌

$

6,290‌

Metal

Fabrication

&

Hardware

-

0

.16

%

MISUMI

Group

Inc

19,800‌

786‌

NSK

Ltd

26,700‌

187‌

SKF

AB

26,527‌

678‌

Tenaris

SA

32,823‌

330‌

$

1,981‌

Schedule

of

Investments

International

Equity

Index

Fund

See

accompanying

notes.

158

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Mining

-

2

.51

%

Anglo

American

PLC

90,011‌

$

3,802‌

Antofagasta

PLC

27,460‌

550‌

BHP

Group

Ltd

204,761‌

6,775‌

BHP

Group

PLC

146,807‌

4,565‌

Boliden

AB

(d)

19,012‌

664‌

Evolution

Mining

Ltd

125,986‌

359‌

Glencore

PLC

(d)

695,900‌

3,137‌

Newcrest

Mining

Ltd

56,809‌

1,026‌

Norsk

Hydro

ASA

93,478‌

645‌

Northern

Star

Resources

Ltd

76,826‌

547‌

Rio

Tinto

Ltd

25,804‌

2,100‌

Rio

Tinto

PLC

78,057‌

5,775‌

South32

Ltd

327,999‌

747‌

Sumitomo

Metal

Mining

Co

Ltd

17,100‌

655‌

$

31,347‌

Miscellaneous

Manufacturers

-

1

.11

%

Alfa

Laval

AB

21,868‌

888‌

Alstom

SA

21,972‌

945‌

JSR

Corp

14,200‌

492‌

Knorr-Bremse

AG

5,043‌

605‌

Orica

Ltd

28,285‌

271‌

Siemens

AG

53,175‌

8,821‌

Smiths

Group

PLC

27,553‌

547‌

Toshiba

Corp

28,400‌

1,232‌

$

13,801‌

Office

&

Business

Equipment

-

0

.36

%

Canon

Inc

69,600‌

1,656‌

FUJIFILM

Holdings

Corp

25,100‌

2,066‌

Ricoh

Co

Ltd

46,600‌

474‌

Seiko

Epson

Corp

19,400‌

361‌

$

4,557‌

Oil

&

Gas

-

2

.92

%

Ampol

Ltd

16,565‌

333‌

BP

PLC

1,407,038‌

5,724‌

DCC

PLC

6,852‌

583‌

ENEOS

Holdings

Inc

213,430‌

825‌

Eni

SpA

175,434‌

2,165‌

Equinor

ASA

67,932‌

1,440‌

Galp

Energia

SGPS

SA

34,843‌

356‌

Idemitsu

Kosan

Co

Ltd

14,481‌

347‌

Inpex

Corp

71,200‌

489‌

Lundin

Energy

AB

13,912‌

425‌

Neste

Oyj

29,407‌

1,791‌

Oil

Search

Ltd

137,207‌

372‌

OMV

AG

10,237‌

567‌

Repsol

SA

100,859‌

1,157‌

Royal

Dutch

Shell

PLC

-

A

Shares

285,070‌

5,650‌

Royal

Dutch

Shell

PLC

-

B

Shares

257,610‌

5,069‌

Santos

Ltd

130,311‌

571‌

TotalEnergies

SE

173,656‌

7,681‌

Woodside

Petroleum

Ltd

66,977‌

947‌

$

36,492‌

Pharmaceuticals

-

8

.18

%

Amplifon

SpA

8,656‌

453‌

Astellas

Pharma

Inc

129,500‌

2,182‌

AstraZeneca

PLC

107,675‌

12,592‌

Bayer

AG

68,288‌

3,799‌

Chugai

Pharmaceutical

Co

Ltd

46,700‌

1,825‌

Daiichi

Sankyo

Co

Ltd

121,700‌

2,891‌

Eisai

Co

Ltd

16,500‌

1,361‌

GlaxoSmithKline

PLC

349,726‌

7,035‌

Grifols

SA

20,735‌

507‌

Hikma

Pharmaceuticals

PLC

12,039‌

420‌

Hisamitsu

Pharmaceutical

Co

Inc

(e)

3,500‌

140‌

Ipsen

SA

2,623‌

262‌

Kobayashi

Pharmaceutical

Co

Ltd

3,700‌

290‌

Kyowa

Kirin

Co

Ltd

18,800‌

615‌

Medipal

Holdings

Corp

12,700‌

243‌

Merck

KGaA

8,985‌

2,135‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Pharmaceuticals

(continued)

Nippon

Shinyaku

Co

Ltd

3,400‌

$

276‌

Novartis

AG

154,333‌

14,274‌

Novo

Nordisk

A/S

117,048‌

11,718‌

Ono

Pharmaceutical

Co

Ltd

25,800‌

619‌

Orion

Oyj

7,376‌

301‌

Otsuka

Holdings

Co

Ltd

27,200‌

1,157‌

Recordati

Industria

Chimica

e

Farmaceutica

SpA

7,269‌

477‌

Roche

Holding

AG

(e)

2,225‌

996‌

Roche

Holding

AG

48,835‌

19,610‌

Sanofi

78,870‌

8,174‌

Santen

Pharmaceutical

Co

Ltd

25,000‌

374‌

Shionogi

&

Co

Ltd

18,500‌

1,162‌

Sumitomo

Dainippon

Pharma

Co

Ltd

12,300‌

221‌

Taisho

Pharmaceutical

Holdings

Co

Ltd

2,600‌

152‌

Takeda

Pharmaceutical

Co

Ltd

109,700‌

3,651‌

Teva

Pharmaceutical

Industries

Ltd

ADR

(d)

76,621‌

722‌

UCB

SA

8,789‌

1,005‌

Vifor

Pharma

AG

3,390‌

483‌

$

102,122‌

Pipelines

-

0

.06

%

APA

Group

82,013‌

549‌

Koninklijke

Vopak

NV

4,886‌

212‌

$

761‌

Private

Equity

-

0

.39

%

3i

Group

PLC

67,644‌

1,244‌

EQT

AB

16,561‌

845‌

Partners

Group

Holding

AG

1,578‌

2,798‌

$

4,887‌

Real

Estate

-

1

.41

%

Aroundtown

SA

69,444‌

532‌

Azrieli

Group

Ltd

2,951‌

276‌

CapitaLand

Ltd

183,500‌

545‌

CK

Asset

Holdings

Ltd

139,632‌

909‌

Daito

Trust

Construction

Co

Ltd

4,600‌

505‌

Deutsche

Wohnen

SE

23,763‌

1,475‌

ESR

Cayman

Ltd

(d),(f)

138,200‌

421‌

Fastighets

AB

Balder

(d)

7,311‌

523‌

Hang

Lung

Properties

Ltd

140,000‌

336‌

Henderson

Land

Development

Co

Ltd

100,982‌

457‌

Hongkong

Land

Holdings

Ltd

81,114‌

340‌

Hulic

Co

Ltd

18,800‌

221‌

LEG

Immobilien

SE

5,012‌

800‌

Mitsubishi

Estate

Co

Ltd

82,200‌

1,287‌

Mitsui

Fudosan

Co

Ltd

63,800‌

1,464‌

New

World

Development

Co

Ltd

105,750‌

497‌

Nomura

Real

Estate

Holdings

Inc

8,200‌

210‌

REA

Group

Ltd

3,675‌

411‌

Sino

Land

Co

Ltd

229,073‌

337‌

Sumitomo

Realty

&

Development

Co

Ltd

21,600‌

697‌

Sun

Hung

Kai

Properties

Ltd

90,000‌

1,269‌

Swire

Properties

Ltd

81,200‌

220‌

Swiss

Prime

Site

AG

5,281‌

565‌

UOL

Group

Ltd

32,300‌

168‌

Vonovia

SE

37,984‌

2,564‌

Wharf

Real

Estate

Investment

Co

Ltd

116,000‌

575‌

$

17,604‌

REITs

-

1

.34

%

Ascendas

Real

Estate

Investment

Trust

231,450‌

522‌

British

Land

Co

PLC/The

61,195‌

447‌

CapitaLand

Integrated

Commercial

Trust

315,256‌

482‌

Covivio

3,617‌

345‌

Daiwa

House

REIT

Investment

Corp

138‌

408‌

Dexus/AU

74,761‌

582‌

Gecina

SA

3,193‌

496‌

GLP

J-Reit

(d)

287‌

521‌

Goodman

Group

115,571‌

1,952‌

GPT

Group/The

133,575‌

473‌

Japan

Metropolitan

Fund

Invest

486‌

472‌

Japan

Real

Estate

Investment

Corp

87‌

538‌

Schedule

of

Investments

International

Equity

Index

Fund

See

accompanying

notes.

159

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

REITs

(continued)

Klepierre

SA

14,347‌

$

352‌

Land

Securities

Group

PLC

48,962‌

478‌

Link

REIT

144,800‌

1,331‌

Mapletree

Commercial

Trust

150,000‌

226‌

Mapletree

Logistics

Trust

208,500‌

314‌

Mirvac

Group

273,692‌

623‌

Nippon

Building

Fund

Inc

104‌

675‌

Nippon

Prologis

REIT

Inc

144‌

518‌

Nomura

Real

Estate

Master

Fund

Inc

295‌

455‌

Orix

JREIT

Inc

183‌

326‌

Scentre

Group

360,774‌

750‌

Segro

PLC

83,420‌

1,474‌

Stockland

165,929‌

559‌

Unibail-Rodamco-Westfield

(d)

8,665‌

759‌

United

Urban

Investment

Corp

206‌

291‌

Vicinity

Centres

268,957‌

340‌

$

16,709‌

Retail

-

2

.10

%

ABC-Mart

Inc

2,200‌

118‌

Aeon

Co

Ltd

(e)

45,500‌

1,205‌

Chow

Tai

Fook

Jewellery

Group

Ltd

139,000‌

281‌

Cie

Financiere

Richemont

SA

36,284‌

4,005‌

Cosmos

Pharmaceutical

Corp

1,300‌

230‌

Domino's

Pizza

Enterprises

Ltd

4,211‌

481‌

Fast

Retailing

Co

Ltd

4,100‌

2,701‌

H

&

M

Hennes

&

Mauritz

AB

(d)

50,766‌

1,019‌

Industria

de

Diseno

Textil

SA

75,822‌

2,590‌

JD

Sports

Fashion

PLC

35,854‌

498‌

Kingfisher

PLC

146,757‌

707‌

Lawson

Inc

(e)

3,400‌

164‌

McDonald's

Holdings

Co

Japan

Ltd

(e)

5,400‌

258‌

Moncler

SpA

14,266‌

913‌

9,243‌

1,005‌

Nitori

Holdings

Co

Ltd

5,600‌

1,048‌

Pan

Pacific

International

Holdings

Corp

28,700‌

546‌

Pandora

A/S

6,952‌

833‌

Reece

Ltd

20,206‌

307‌

Ryohin

Keikaku

Co

Ltd

17,500‌

375‌

Swatch

Group

AG/The

-

BR

2,012‌

568‌

Swatch

Group

AG/The

-

REG

3,658‌

201‌

Tsuruha

Holdings

Inc

2,700‌

339‌

USS

Co

Ltd

15,200‌

251‌

Welcia

Holdings

Co

Ltd

6,500‌

229‌

Wesfarmers

Ltd

78,811‌

3,442‌

Yamada

Holdings

Co

Ltd

47,100‌

202‌

Zalando

SE

(d),(e),(f)

15,416‌

1,709‌

$

26,225‌

Semiconductors

-

3

.27

%

Advantest

Corp

13,900‌

1,198‌

ASM

International

NV

3,289‌

1,276‌

ASML

Holding

NV

29,159‌

24,318‌

Hamamatsu

Photonics

KK

9,800‌

571‌

Infineon

Technologies

AG

90,773‌

3,865‌

Lasertec

Corp

5,200‌

1,131‌

Renesas

Electronics

Corp

(d)

87,200‌

934‌

Rohm

Co

Ltd

6,100‌

586‌

STMicroelectronics

NV

47,469‌

2,115‌

SUMCO

Corp

19,200‌

404‌

Tokyo

Electron

Ltd

10,400‌

4,455‌

$

40,853‌

Shipbuilding

-

0

.04

%

Wartsila

OYJ

Abp

32,904‌

467‌

Software

-

1

.74

%

AVEVA

Group

PLC

8,373‌

476‌

Capcom

Co

Ltd

12,200‌

340‌

Dassault

Systemes

SE

46,122‌

2,634‌

Embracer

Group

AB

(d)

16,234‌

370‌

Koei

Tecmo

Holdings

Co

Ltd

4,060‌

173‌

Konami

Holdings

Corp

6,500‌

411‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Software

(continued)

Nemetschek

SE

4,015‌

$

394‌

Nexon

Co

Ltd

33,900‌

618‌

Oracle

Corp

Japan

2,700‌

222‌

Sage

Group

PLC/The

74,683‌

763‌

SAP

SE

72,583‌

10,903‌

Sinch

AB

(d),(f)

35,161‌

790‌

Square

Enix

Holdings

Co

Ltd

6,000‌

349‌

TeamViewer

AG

(d),(f)

11,182‌

373‌

Temenos

AG

4,643‌

737‌

TIS

Inc

15,600‌

440‌

Ubisoft

Entertainment

SA

(d)

6,438‌

409‌

WiseTech

Global

Ltd

10,164‌

357‌

Xero

Ltd

(d)

9,253‌

1,023‌

$

21,782‌

Telecommunications

-

3

.25

%

BT

Group

PLC

(d)

620,429‌

1,450‌

Deutsche

Telekom

AG

231,672‌

4,926‌

Elisa

Oyj

9,887‌

634‌

Hikari

Tsushin

Inc

1,400‌

245‌

HKT

Trust

&

HKT

Ltd

262,980‌

359‌

KDDI

Corp

112,200‌

3,429‌

Koninklijke

KPN

NV

233,706‌

749‌

Nice

Ltd

(d)

4,387‌

1,274‌

Nippon

Telegraph

&

Telephone

Corp

89,500‌

2,385‌

Nokia

OYJ

(d)

374,765‌

2,251‌

Orange

SA

138,673‌

1,577‌

Proximus

SADP

10,574‌

207‌

Singapore

Telecommunications

Ltd

574,000‌

988‌

SoftBank

Corp

199,700‌

2,673‌

SoftBank

Group

Corp

83,900‌

4,728‌

Spark

New

Zealand

Ltd

129,779‌

446‌

Swisscom

AG

1,801‌

1,057‌

Tele2

AB

34,814‌

523‌

Telecom

Italia

SpA/Milano

692,589‌

314‌

Telecom

Italia

SpA/Milano

-

RSP

418,980‌

202‌

Telefonaktiebolaget

LM

Ericsson

202,879‌

2,403‌

Telefonica

Deutschland

Holding

AG

72,365‌

203‌

Telefonica

SA

357,559‌

1,769‌

Telenor

ASA

48,638‌

852‌

Telia

Co

AB

184,772‌

794‌

Telstra

Corp

Ltd

289,338‌

811‌

Vodafone

Group

PLC

1,943,556‌

3,264‌

$

40,513‌

Toys,

Games

&

Hobbies

-

0

.38

%

Bandai

Namco

Holdings

Inc

13,900‌

964‌

Nintendo

Co

Ltd

7,800‌

3,747‌

$

4,711‌

Transportation

-

1

.83

%

AP

Moller

-

Maersk

A/S

-

A

219‌

594‌

AP

Moller

-

Maersk

A/S

-

B

403‌

1,148‌

Aurizon

Holdings

Ltd

127,945‌

352‌

Central

Japan

Railway

Co

10,100‌

1,478‌

Deutsche

Post

AG

68,901‌

4,844‌

DSV

PANALPINA

A/S

14,013‌

3,569‌

East

Japan

Railway

Co

21,100‌

1,418‌

Getlink

SE

30,585‌

493‌

Hankyu

Hanshin

Holdings

Inc

16,000‌

479‌

InPost

SA

(d)

13,902‌

272‌

Keio

Corp

7,100‌

382‌

Keisei

Electric

Railway

Co

Ltd

9,000‌

277‌

Kintetsu

Group

Holdings

Co

Ltd

(d)

11,900‌

407‌

Kuehne

+

Nagel

International

AG

3,776‌

1,380‌

MTR

Corp

Ltd

107,500‌

605‌

Nippon

Express

Co

Ltd

5,300‌

360‌

Nippon

Yusen

KK

11,100‌

893‌

Odakyu

Electric

Railway

Co

Ltd

20,500‌

478‌

Poste

Italiane

SpA

(f)

36,315‌

492‌

SG

Holdings

Co

Ltd

22,300‌

605‌

SITC

International

Holdings

Co

Ltd

92,000‌

401‌

Schedule

of

Investments

International

Equity

Index

Fund

See

accompanying

notes.

160

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Transportation

(continued)

Tobu

Railway

Co

Ltd

13,100‌

$

342‌

Tokyu

Corp

34,700‌

477‌

West

Japan

Railway

Co

11,300‌

617‌

Yamato

Holdings

Co

Ltd

20,300‌

516‌

$

22,879‌

Water

-

0

.26

%

Severn

Trent

PLC

17,362‌

660‌

Suez

SA

24,440‌

567‌

United

Utilities

Group

PLC

47,397‌

689‌

Veolia

Environnement

SA

38,270‌

1,313‌

$

3,229‌

TOTAL

COMMON

STOCKS

$

1,202,231‌

PREFERRED

STOCKS

-

0

.57

%

Shares

Held

Value

(000's)

Automobile

Manufacturers

-

0

.36

%

Bayerische

Motoren

Werke

AG

1.92%

4,009‌

$

336‌

Porsche

Automobil

Holding

SE

2.21%

10,644‌

1,077‌

Volkswagen

AG

4.86%

12,901‌

3,068‌

$

4,481‌

Chemicals

-

0

.02

%

FUCHS

PETROLUB

SE

0.99%

4,840‌

245‌

Consumer

Products

-

0

.10

%

Henkel

AG

&

Co

KGaA

1.85%

12,385‌

1,210‌

Electronics

-

0

.09

%

Sartorius

AG

0.71%

1,823‌

1,201‌

TOTAL

PREFERRED

STOCKS

$

7,137‌

Total

Investments

$

1,253,927‌

Other

Assets

and

Liabilities

- (0.47)%

(

5,847‌

)

TOTAL

NET

ASSETS

-

100.00%

$

1,248,080‌

(a)

Current

yield

shown

is

as

of

period

end.

(b)

Security

or

a

portion

of

the

security

was

received

as

collateral

for

securities

lending.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$10,500

or

0.84%

of

net

assets.

(c)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(d)

Non-income

producing

security

(e)

Security

or

a

portion

of

the

security

was

on

loan. At

the

end

of

the

period,

the

value

of

these

securities

totaled

$9,980

or

0.80%

of

net

assets.

(f)

Security

exempt

from

registration

under

Rule

144A

of

the

Securities

Act

of

1933.

These

securities

may

be

resold

in

transactions

exempt

from

registration,

normally

to

qualified

institutional

buyers.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$25,989

or

2.08%

of

net

assets.

(g)

The

value

of

these

investments

was

determined

using

significant

unobservable

inputs,

in

good

faith

by

the

Manager,

under

procedures

established

and

periodically

reviewed

by

the

Board

of

Directors.

Portfolio

Summary (unaudited)

Location

Percent

Japan

22

.27‌

%

United

Kingdom

12

.10‌

%

France

10

.70‌

%

Switzerland

10

.14‌

%

Germany

8

.92‌

%

Australia

6

.90‌

%

Netherlands

6

.01‌

%

United

States

3

.57‌

%

Sweden

3

.42‌

%

Hong

Kong

2

.93‌

%

Denmark

2

.62‌

%

Spain

2

.34‌

%

Italy

1

.98‌

%

Finland

1

.26‌

%

Ireland

1

.10‌

%

Singapore

1

.08‌

%

Belgium

0

.80‌

%

Israel

0

.61‌

%

Norway

0

.60‌

%

New

Zealand

0

.33‌

%

Luxembourg

0

.31‌

%

Austria

0

.19‌

%

Portugal

0

.14‌

%

Macao

0

.05‌

%

Chile

0

.05‌

%

Jordan

0

.03‌

%

Poland

0

.02‌

%

United

Arab

Emirates

0

.00‌

%

Other

Assets

and

Liabilities

(

0

.47‌

)

%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

Purchases

Sales

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

$

10,634‌

$

386,951‌

$

387,567‌

$

10,018‌

$

10,634‌

$

386,951‌

$

387,567‌

$

10,018‌

Income

(a)

Realized

Gain/Loss

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

Loss

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

(a)

Amount

excludes

earnings

from

securities

lending

collateral.

Futures

Description

and

Expiration

Date

Type

Notional

Amount

Value

and

Unrealized

Appreciation/(Depreciation)

eMini

MSCI

EAFE;

September

2021

Long

19‌

$

2,234‌

$

(

7‌

)

Total

$

(

7‌

)

Amounts

in

thousands

except

Schedule

of

Investments

International

Small

Company

Fund

See

accompanying

notes.

161

INVESTMENT

COMPANIES

-

3

.70

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

3

.70

%

BlackRock

Liquidity

FedFund

-

Institutional

Class

0.03%

(a),(b)

7,365,633‌

$

7,366‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

(a),(b),(c),(d)

36,399,431‌

36,399‌

$

43,765‌

TOTAL

INVESTMENT

COMPANIES

$

43,765‌

COMMON

STOCKS

-

98

.29

%

Shares

Held

Value

(000's)

Advertising

-

0

.44

%

Stroeer

SE

&

Co

KGaA

63,697‌

$

5,246‌

Aerospace

&

Defense

-

1

.13

%

CAE

Inc

(d)

202,700‌

5,853‌

Rheinmetall

AG

76,941‌

7,524‌

$

13,377‌

Agriculture

-

0

.47

%

Genus

PLC

67,660‌

5,521‌

Airlines

-

0

.17

%

Wizz

Air

Holdings

Plc

(d),(e)

30,334‌

2,028‌

Apparel

-

1

.14

%

boohoo

Group

PLC

(d)

2,026,872‌

7,895‌

Puma

SE

25,745‌

3,126‌

Yue

Yuen

Industrial

Holdings

Ltd

(d)

1,198,000‌

2,430‌

$

13,451‌

Automobile

Parts

&

Equipment

-

1

.90

%

Faurecia

SE

122,645‌

5,925‌

Georg

Fischer

AG

2,724‌

4,470‌

Musashi

Seimitsu

Industry

Co

Ltd

105,300‌

1,855‌

Toyoda

Gosei

Co

Ltd

218,000‌

4,636‌

TS

Tech

Co

Ltd

114,900‌

1,556‌

Yokohama

Rubber

Co

Ltd/The

234,500‌

4,000‌

$

22,442‌

Banks

-

4

.44

%

Banca

Mediolanum

SpA

704,908‌

7,318‌

Bank

of

Ireland

Group

PLC

(d)

1,169,296‌

7,319‌

BAWAG

Group

AG

(d),(e)

97,550‌

5,846‌

BPER

Banca

3,602,424‌

7,843‌

Chiba

Bank

Ltd/The

799,300‌

4,990‌

Mediobanca

Banca

di

Credito

Finanziario

SpA

716,522‌

8,447‌

OSB

Group

PLC

392,240‌

2,752‌

Paragon

Banking

Group

PLC

398,684‌

3,081‌

Shinsei

Bank

Ltd

394,800‌

4,894‌

$

52,490‌

Beverages

-

0

.70

%

Royal

Unibrew

A/S

64,246‌

8,300‌

Biotechnology

-

0

.14

%

Cellectis

SA

ADR

(d)

117,770‌

1,694‌

Building

Materials

-

2

.41

%

Buzzi

Unicem

SpA

329,242‌

8,741‌

Ibstock

PLC

(e)

987,163‌

3,252‌

ROCKWOOL

International

A/S

19,071‌

10,089‌

Wienerberger

AG

163,359‌

6,410‌

$

28,492‌

Chemicals

-

2

.79

%

Arkema

SA

58,162‌

7,730‌

Denka

Co

Ltd

183,100‌

6,418‌

Sumitomo

Bakelite

Co

Ltd

156,900‌

6,764‌

Tokai

Carbon

Co

Ltd

471,700‌

6,255‌

Zeon

Corp

436,200‌

5,781‌

$

32,948‌

Commercial

Services

-

2

.04

%

Loomis

AB

216,645‌

6,727‌

M&A

Capital

Partners

Co

Ltd

(d)

40,200‌

1,950‌

Nishio

Rent

All

Co

Ltd

37,300‌

989‌

Nuvei

Corp

(d),(e)

33,896‌

4,305‌

Persol

Holdings

Co

Ltd

189,800‌

4,431‌

Rentokil

Initial

PLC

408,894‌

3,266‌

Sixt

SE

(d),(f)

18,332‌

2,464‌

$

24,132‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Computers

-

3

.86

%

Computacenter

PLC

125,624‌

$

5,082‌

CyberArk

Software

Ltd

(d)

44,077‌

7,402‌

Keywords

Studios

PLC

(d)

122,351‌

5,249‌

Logitech

International

SA

36,641‌

3,752‌

NEC

Corp

62,000‌

3,254‌

NET

One

Systems

Co

Ltd

165,500‌

5,243‌

Nihon

Unisys

Ltd

88,900‌

2,416‌

S&T

AG

(f)

144,940‌

3,328‌

Sopra

Steria

Group

SACA

24,856‌

5,063‌

Teleperformance

10,744‌

4,753‌

$

45,542‌

Distribution

&

Wholesale

-

1

.10

%

Seven

Group

Holdings

Ltd

(f)

415,654‌

6,419‌

Toromont

Industries

Ltd

77,604‌

6,525‌

$

12,944‌

Diversified

Financial

Services

-

3

.89

%

DWS

Group

GmbH

&

Co

KGaA

(e)

49,245‌

2,078‌

Euronext

NV

(e)

84,134‌

9,763‌

IG

Group

Holdings

PLC

692,369‌

8,916‌

Man

Group

PLC/Jersey

1,462,310‌

4,344‌

Mitsubishi

HC

Capital

Inc

1,048,100‌

5,613‌

Mizuho

Leasing

Co

Ltd

31,300‌

1,000‌

St

James's

Place

PLC

397,040‌

8,792‌

Zenkoku

Hosho

Co

Ltd

115,700‌

5,504‌

$

46,010‌

Electric

-

2

.64

%

BKW

AG

23,523‌

2,728‌

Boralex

Inc

190,500‌

5,839‌

Capital

Power

Corp

249,900‌

8,594‌

Hera

SpA

1,555,188‌

6,724‌

Northland

Power

Inc

221,500‌

7,328‌

$

31,213‌

Electrical

Components

&

Equipment

-

1

.83

%

Casio

Computer

Co

Ltd

134,200‌

2,073‌

Nexans

SA

30,616‌

3,069‌

Prysmian

SpA

226,557‌

8,530‌

Signify

NV

(e)

142,790‌

7,999‌

$

21,671‌

Electronics

-

1

.27

%

Anritsu

Corp

(f)

301,000‌

5,218‌

Halma

PLC

87,398‌

3,609‌

Mycronic

AB

164,911‌

5,093‌

Sodick

Co

Ltd

132,700‌

1,079‌

$

14,999‌

Energy

-

Alternate

Sources

-

0

.28

%

ERG

SpA

112,411‌

3,313‌

Engineering

&

Construction

-

3

.42

%

Balfour

Beatty

PLC

1,003,895‌

3,947‌

Downer

EDI

Ltd

1,505,956‌

7,121‌

Kumagai

Gumi

Co

Ltd

58,900‌

1,438‌

Kyowa

Exeo

Corp

271,900‌

6,823‌

Kyudenko

Corp

62,900‌

2,262‌

Mirait

Holdings

Corp

178,300‌

3,547‌

Penta-Ocean

Construction

Co

Ltd

775,900‌

4,925‌

SPIE

SA

210,393‌

4,994‌

Stantec

Inc

110,600‌

5,338‌

$

40,395‌

Entertainment

-

1

.81

%

Entain

PLC

(d)

305,251‌

8,112‌

Kindred

Group

PLC

474,842‌

8,778‌

Sega

Sammy

Holdings

Inc

331,700‌

4,474‌

$

21,364‌

Food

-

3

.55

%

AAK

AB

211,505‌

5,060‌

Cranswick

PLC

61,419‌

3,354‌

Empire

Co

Ltd

194,600‌

6,293‌

HelloFresh

SE

(d)

51,106‌

5,518‌

J

Sainsbury

PLC

1,689,345‌

7,061‌

Schedule

of

Investments

International

Small

Company

Fund

See

accompanying

notes.

162

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Food

(continued)

Morinaga

Milk

Industry

Co

Ltd

144,700‌

$

9,130‌

Sonae

SGPS

SA

3,043,800‌

3,314‌

SSP

Group

Plc

(d)

578,605‌

2,172‌

$

41,902‌

Forest

Products

&

Paper

-

0

.74

%

Sumitomo

Forestry

Co

Ltd

259,500‌

5,064‌

UPM-Kymmene

Oyj

91,324‌

3,720‌

$

8,784‌

Hand

&

Machine

Tools

-

0

.64

%

Amada

Co

Ltd

743,300‌

7,535‌

Healthcare

-

Products

-

0

.72

%

Carl

Zeiss

Meditec

AG

13,768‌

3,042‌

ConvaTec

Group

PLC

(e)

1,777,925‌

5,509‌

$

8,551‌

Healthcare

-

Services

-

1

.27

%

Evotec

SE

(d)

172,804‌

8,596‌

ICON

PLC

(d)

25,000‌

6,394‌

$

14,990‌

Holding

Companies

-

Diversified

-

0

.47

%

Swire

Pacific

Ltd

823,000‌

5,572‌

Home

Builders

-

1

.11

%

Redrow

PLC

889,413‌

8,691‌

Taylor

Wimpey

PLC

1,734,339‌

4,366‌

$

13,057‌

Home

Furnishings

-

0

.23

%

GN

Store

Nord

AS

36,629‌

2,757‌

Insurance

-

1

.54

%

ASR

Nederland

NV

(f)

218,841‌

10,000‌

Conduit

Holdings

Ltd

308,458‌

2,146‌

SCOR

SE

196,126‌

6,019‌

$

18,165‌

Internet

-

2

.20

%

Auto1

Group

SE

(d),(e)

33,656‌

1,464‌

flatexDEGIRO

AG

(d)

54,338‌

5,646‌

Future

PLC

206,495‌

10,934‌

Scout24

AG

(e)

71,368‌

6,000‌

Victorian

Plumbing

Group

PLC

(d)

593,825‌

1,951‌

$

25,995‌

Iron

&

Steel

-

1

.25

%

APERAM

SA

107,811‌

6,614‌

BlueScope

Steel

Ltd

361,997‌

6,618‌

Mineral

Resources

Ltd

39,808‌

1,584‌

$

14,816‌

Lodging

-

0

.29

%

Whitbread

PLC

(d)

76,487‌

3,378‌

Machinery

-

Diversified

-

4

.04

%

ATS

Automation

Tooling

Systems

Inc

(d)

187,600‌

6,783‌

Bucher

Industries

AG

15,444‌

7,814‌

Husqvarna

AB

552,903‌

7,427‌

IMI

PLC

328,923‌

8,248‌

KION

Group

AG

78,528‌

8,403‌

Sumitomo

Heavy

Industries

Ltd

234,400‌

6,132‌

Vesuvius

PLC

370,808‌

2,866‌

$

47,673‌

Media

-

1

.61

%

Internet

Initiative

Japan

Inc

122,900‌

4,278‌

ITV

PLC

(d)

4,623,702‌

7,369‌

Nine

Entertainment

Co

Holdings

Ltd

3,694,147‌

7,352‌

$

18,999‌

Metal

Fabrication

&

Hardware

-

1

.61

%

Hanwa

Co

Ltd

75,100‌

2,252‌

Reliance

Worldwide

Corp

Ltd

1,239,709‌

5,282‌

VAT

Group

AG

(e)

27,537‌

11,534‌

$

19,068‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Mining

-

1

.37

%

Argonaut

Gold

Inc

(d)

555,200‌

$

1,386‌

NRW

Holdings

Ltd

1,704,950‌

2,353‌

Perenti

Global

Ltd

2,098,170‌

1,334‌

SSR

Mining

Inc

424,834‌

7,098‌

Wesdome

Gold

Mines

Ltd

(d)

402,400‌

3,958‌

$

16,129‌

Miscellaneous

Manufacturers

-

1

.28

%

Aalberts

NV

107,095‌

6,688‌

Trelleborg

AB

345,005‌

8,399‌

$

15,087‌

Office

&

Business

Equipment

-

0

.47

%

Canon

Marketing

Japan

Inc

148,300‌

3,381‌

Sato

Holdings

Corp

86,700‌

2,122‌

$

5,503‌

Oil

&

Gas

-

2

.14

%

ARC

Resources

Ltd

485,200‌

3,465‌

Lundin

Energy

AB

202,158‌

6,178‌

Parex

Resources

Inc

401,967‌

6,194‌

Tourmaline

Oil

Corp

352,700‌

9,432‌

$

25,269‌

Packaging

&

Containers

-

1

.96

%

DS

Smith

PLC

1,807,965‌

11,001‌

SIG

Combibloc

Group

AG

(d)

396,619‌

12,142‌

$

23,143‌

Pharmaceuticals

-

3

.36

%

ALK-Abello

A/S

(d)

8,530‌

4,169‌

CVS

Group

PLC

(d)

198,079‌

6,773‌

Dechra

Pharmaceuticals

PLC

151,917‌

10,940‌

Hikma

Pharmaceuticals

PLC

198,791‌

6,939‌

Nippon

Shinyaku

Co

Ltd

63,700‌

5,170‌

Ship

Healthcare

Holdings

Inc

123,600‌

3,140‌

Towa

Pharmaceutical

Co

Ltd

96,900‌

2,598‌

$

39,729‌

Pipelines

-

0

.28

%

Keyera

Corp

(f)

135,000‌

3,251‌

Private

Equity

-

1

.17

%

Intermediate

Capital

Group

PLC

342,854‌

10,368‌

JAFCO

Group

Co

ltd

57,600‌

3,478‌

$

13,846‌

Real

Estate

-

1

.66

%

CA

Immobilien

Anlagen

AG

65,811‌

2,863‌

Hysan

Development

Co

Ltd

1,360,000‌

4,853‌

Kojamo

Oyj

154,560‌

3,763‌

TAG

Immobilien

AG

185,074‌

6,268‌

Tokyu

Fudosan

Holdings

Corp

330,500‌

1,912‌

$

19,659‌

REITs

-

8

.20

%

alstria

office

REIT-AG

238,664‌

4,862‌

Canadian

Apartment

Properties

REIT

119,600‌

5,793‌

Charter

Hall

Group

810,937‌

10,584‌

Cofinimmo

SA

17,673‌

2,924‌

Derwent

London

PLC

64,315‌

3,354‌

First

Capital

Real

Estate

Investment

Trust

296,100‌

4,229‌

Frasers

Logistics

&

Commercial

Trust

5,650,700‌

6,293‌

GLP

J-Reit

(d)

4,097‌

7,435‌

Granite

Real

Estate

Investment

Trust

58,800‌

4,245‌

Japan

Hotel

REIT

Investment

Corp

9,730‌

5,745‌

Kenedix

Residential

Corp

1,551‌

3,328‌

Keppel

DC

REIT

2,851,900‌

5,295‌

Mapletree

Industrial

Trust

2,888,925‌

6,272‌

Mirvac

Group

3,158,816‌

7,194‌

Mitsui

Fudosan

Logistics

Park

Inc

(d)

1,127‌

6,675‌

NIPPON

REIT

Investment

Corp

622‌

2,550‌

Summit

Industrial

Income

REIT

322,400‌

5,471‌

Warehouses

De

Pauw

CVA

100,811‌

4,636‌

$

96,885‌

Schedule

of

Investments

International

Small

Company

Fund

See

accompanying

notes.

163

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Retail

-

6

.36

%

ABC-Mart

Inc

(f)

51,800‌

$

2,769‌

B&M

European

Value

Retail

SA

1,140,182‌

8,774‌

cocokara

fine

Inc

(f)

44,100‌

3,471‌

Cosmos

Pharmaceutical

Corp

39,400‌

6,977‌

Grafton

Group

PLC

404,931‌

7,782‌

JD

Sports

Fashion

PLC

517,194‌

7,182‌

Man

Wah

Holdings

Ltd

1,792,000‌

3,348‌

Moncler

SpA

43,955‌

2,814‌

Ryohin

Keikaku

Co

Ltd

301,100‌

6,447‌

Seria

Co

Ltd

172,600‌

6,298‌

Shop

Apotheke

Europe

NV

(d),(e)

23,667‌

4,222‌

Super

Retail

Group

Ltd

526,594‌

4,720‌

WH

Smith

PLC

(d)

98,691‌

2,218‌

Zur

Rose

Group

AG

(d)

18,773‌

8,067‌

$

75,089‌

Semiconductors

-

3

.01

%

Alphawave

IP

Group

PLC

(d)

1,084,143‌

4,726‌

ASM

International

NV

26,521‌

10,290‌

Tokyo

Ohka

Kogyo

Co

Ltd

115,000‌

7,197‌

Tower

Semiconductor

Ltd

(d)

159,937‌

4,702‌

Ulvac

Inc

160,900‌

8,667‌

$

35,582‌

Shipbuilding

-

0

.61

%

Yangzijiang

Shipbuilding

Holdings

Ltd

5,920,500‌

7,210‌

Software

-

2

.51

%

Cint

Group

AB

(d)

177,896‌

2,494‌

Descartes

Systems

Group

Inc/The

(d)

74,100‌

5,809‌

LINK

Mobility

Group

Holding

ASA

(d)

808,322‌

3,814‌

Open

Text

Corp

67,400‌

3,697‌

Pro

Medicus

Ltd

109,554‌

5,037‌

Sophia

Genetics

SA

(d),(f)

63,005‌

1,246‌

TIS

Inc

266,300‌

7,518‌

$

29,615‌

Storage

&

Warehousing

-

0

.25

%

Safestore

Holdings

PLC

189,198‌

3,006‌

Telecommunications

-

0

.80

%

Bezeq

The

Israeli

Telecommunication

Corp

Ltd

(d)

4,950,310‌

5,882‌

Eutelsat

Communications

SA

311,507‌

3,603‌

$

9,485‌

Transportation

-

3

.72

%

ComfortDelGro

Corp

Ltd

4,760,800‌

5,721‌

Kamigumi

Co

Ltd

323,600‌

6,985‌

Nippon

Express

Co

Ltd

89,600‌

6,093‌

PostNL

NV

1,132,706‌

5,927‌

Sankyu

Inc

131,800‌

6,134‌

TFI

International

Inc

116,300‌

13,140‌

$

44,000‌

TOTAL

COMMON

STOCKS

$

1,161,302‌

PREFERRED

STOCKS

-

0

.36

%

Shares

Held

Value

(000's)

Machinery

-

Diversified

-

0

.36

%

Jungheinrich

AG

0.43%

77,946‌

$

4,209‌

TOTAL

PREFERRED

STOCKS

$

4,209‌

Total

Investments

$

1,209,276‌

Other

Assets

and

Liabilities

- (2.35)%

(

27,750‌

)

TOTAL

NET

ASSETS

-

100.00%

$

1,181,526‌

(a)

Current

yield

shown

is

as

of

period

end.

(b)

Security

or

a

portion

of

the

security

was

received

as

collateral

for

securities

lending.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$24,946

or

2.11%

of

net

assets.

(c)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(d)

Non-income

producing

security

(e)

Security

exempt

from

registration

under

Rule

144A

of

the

Securities

Act

of

1933.

These

securities

may

be

resold

in

transactions

exempt

from

registration,

normally

to

qualified

institutional

buyers.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$64,000

or

5.42%

of

net

assets.

(f)

Security

or

a

portion

of

the

security

was

on

loan. At

the

end

of

the

period,

the

value

of

these

securities

totaled

$23,636

or

2.00%

of

net

assets.

Portfolio

Summary (unaudited)

Location

Percent

Japan

21

.98‌

%

United

Kingdom

17

.19‌

%

Canada

11

.22‌

%

Germany

6

.31‌

%

Australia

5

.11‌

%

Netherlands

4

.66‌

%

Italy

4

.55‌

%

Switzerland

4

.55‌

%

United

States

4

.27‌

%

France

3

.62‌

%

Sweden

3

.50‌

%

Ireland

2

.26‌

%

Denmark

2

.13‌

%

Singapore

1

.99‌

%

Austria

1

.56‌

%

Israel

1

.53‌

%

Hong

Kong

1

.37‌

%

Malta

0

.74‌

%

Belgium

0

.64‌

%

Finland

0

.63‌

%

China

0

.61‌

%

Jordan

0

.59‌

%

Luxembourg

0

.56‌

%

Norway

0

.32‌

%

Portugal

0

.28‌

%

Bermuda

0

.18‌

%

Other

Assets

and

Liabilities

(

2

.35‌

)

%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

Purchases

Sales

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

$

34,884‌

$

654,181‌

$

652,666‌

$

36,399‌

$

34,884‌

$

654,181‌

$

652,666‌

$

36,399‌

Income

(a)

Realized

Gain/Loss

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

Loss

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

(a)

Amount

excludes

earnings

from

securities

lending

collateral.

Schedule

of

Investments

Opportunistic

Municipal

Fund

See

accompanying

notes.

164

INVESTMENT

COMPANIES

-

1.26%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

1.26%

iShares

Short-Term

National

Muni

Bond

ETF

1,000‌

$

108‌

SPDR

Nuveen

Bloomberg

Barclays

High

Yield

Municipal

Bond

ETF

17,135‌

1,042‌

VanEck

High

Yield

Muni

ETF

16,320‌

1,037‌

VanEck

Short

High

Yield

Muni

ETF

1,000‌

25‌

$

2,212‌

TOTAL

INVESTMENT

COMPANIES

$

2,212‌

MUNICIPAL

BONDS

-

103.03%

Principal

Amount

(000's)

Value

(000's)

Alabama

-

3.20%

Columbia

Industrial

Development

Board

0.02%,

12/01/2037

(a)

$

1,400‌

$

1,400‌

Lower

Alabama

Gas

District/The

5.00%,

09/01/2034

1,500‌

2,034‌

Tuscaloosa

County

Industrial

Development

Authority

4.50%,

05/01/2032

(b)

929‌

1,014‌

5.25%,

05/01/2044

(b)

1,000‌

1,175‌

$

5,623‌

Alaska

-

1.34%

Northern

Tobacco

Securitization

Corp

4.00%,

06/01/2050

1,000‌

1,178‌

4.00%,

06/01/2050

1,000‌

1,167‌

$

2,345‌

Arizona

-

3.49%

Arizona

Industrial

Development

Authority

5.00%,

01/01/2049

(b)

1,000‌

897‌

7.25%,

01/01/2054

(b)

1,000‌

800‌

Navajo

Nation

5.50%,

12/01/2030

(b)

2,500‌

2,822‌

Salt

Verde

Financial

Corp

5.00%,

12/01/2032

1,200‌

1,608‌

$

6,127‌

Arkansas

-

0.64%

Arkansas

Development

Finance

Authority

4.50%,

09/01/2049

(b)

1,000‌

1,115‌

California

-

4.41%

Abag

Finance

Authority

for

Nonprofit

Corps

5.00%,

08/01/2043

500‌

543‌

California

Statewide

Communities

Development

Authority

5.25%,

12/01/2048

(b)

1,000‌

1,175‌

California

Statewide

Financing

Authority

6.00%,

05/01/2043

1,000‌

1,010‌

CSCDA

Community

Improvement

Authority

3.13%,

08/01/2056

(b)

2,000‌

2,035‌

4.00%,

08/01/2056

(b)

1,000‌

1,103‌

La

Verne

Public

Financing

Authority

7.25%,

09/01/2026

430‌

432‌

Oakland

Unified

School

District/Alameda

County

5.00%,

08/01/2035

1,225‌

1,437‌

$

7,735‌

Colorado

-

6.67%

Centerra

Metropolitan

District

No

1

5.00%,

12/01/2037

(b)

1,000‌

1,057‌

Creekside

Village

Metropolitan

District

5.00%,

12/01/2039

1,255‌

1,367‌

Eagle

County

Airport

Terminal

Corp

5.00%,

05/01/2037

1,000‌

1,175‌

Elbert

County

Independence

Water

&

Sanitation

District

7.25%,

12/01/2038

1,000‌

1,084‌

Jefferson

County

School

District

R-1

(credit

support

from

State

Aid

Withholding

)

4.00%,

12/15/2034

(c),(d)

683‌

850‌

4.00%,

12/15/2036

(c),(d)

1,820‌

2,253‌

Painted

Prairie

Public

Improvement

Authority

5.00%,

12/01/2049

500‌

545‌

MUNICIPAL

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Colorado

(continued)

Pueblo

Urban

Renewal

Authority

4.75%,

12/01/2045

(b)

$

2,000‌

$

2,296‌

Velocity

Metropolitan

District

No

3

5.50%,

12/01/2048

1,000‌

1,084‌

$

11,711‌

Connecticut

-

1.09%

Mohegan

Tribal

Finance

Authority

7.00%,

02/01/2045

(b)

1,800‌

1,907‌

District

of

Columbia

-

0.65%

District

of

Columbia

4.00%,

07/01/2039

1,000‌

1,147‌

Florida

-

8.98%

County

of

Broward

FL

0.02%,

12/01/2048

(a)

500‌

Florida

Development

Finance

Corp

3.00%,

06/01/2032

4,000‌

4,215‌

7.38%,

01/01/2049

(b)

3,750‌

4,121‌

Greater

Orlando

Aviation

Authority

5.00%,

10/01/2047

(d)

2,999‌

3,619‌

JEA

Water

&

Sewer

System

Revenue

0.01%,

10/01/2038

(a)

1,490‌

Ocean

Highway

&

Port

Authority

5.50%,

12/01/2049

(b)

1,500‌

1,542‌

Orange

County

Housing

Finance

Authority

7.00%,

10/01/2025

275‌

276‌

$

15,763‌

Georgia

-

3.40%

George

L

Smith

II

Congress

Center

Authority

4.00%,

01/01/2054

1,000‌

1,138‌

5.00%,

01/01/2054

(b)

2,000‌

2,361‌

Municipal

Electric

Authority

of

Georgia

(credit

support

from

Assured

Guaranty

Municipal

Corp

)

5.00%,

01/01/2062

(c)

2,000‌

2,470‌

$

5,969‌

Guam

-

1.46%

Territory

of

Guam

4.00%,

01/01/2042

(e)

2,250‌

2,565‌

Illinois

-

12.77%

City

of

Chicago

IL

5.50%,

01/01/2042

300‌

340‌

5.50%,

01/01/2049

1,000‌

1,238‌

6.00%,

01/01/2038

1,900‌

2,362‌

7.46%,

02/15/2026

1,595‌

1,224‌

City

of

Chicago

IL

Wastewater

Transmission

Revenue

5.00%,

01/01/2031

760‌

872‌

5.00%,

01/01/2039

1,200‌

1,366‌

Illinois

Finance

Authority

0.00%,

12/01/2042

(f),(g)

94‌

—‌

Illinois

Sports

Facilities

Authority/The

5.00%,

06/15/2028

1,000‌

1,228‌

5.00%,

06/15/2029

1,000‌

1,245‌

Illinois

State

Toll

Highway

Authority

5.00%,

01/01/2040

(d)

4,991‌

5,851‌

Metropolitan

Pier

&

Exposition

Authority

5.00%,

06/15/2050

1,000‌

1,225‌

5.00%,

06/15/2057

500‌

593‌

Metropolitan

Pier

&

Exposition

Authority

(credit

support

from

National

Public

Finance

Guarantee

Corp

)

5.50%,

06/15/2029

(c)

1,000‌

1,194‌

State

of

Illinois

5.00%,

11/01/2028

500‌

610‌

5.00%,

03/01/2046

1,450‌

1,808‌

5.50%,

07/01/2027

1,150‌

1,251‌

$

22,407‌

Schedule

of

Investments

Opportunistic

Municipal

Fund

See

accompanying

notes.

165

MUNICIPAL

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Indiana

-

0.47%

Indiana

Finance

Authority

0.01%,

02/01/2035

(a)

$

500‌

$

500‌

Town

of

Shoals

IN

7.25%,

11/01/2043

300‌

325‌

$

825‌

Louisiana

-

4.74%

Louisiana

Local

Government

Environmental

Facilities

&

Community

Development

Authority

4.40%,

11/01/2044

(b)

1,000‌

1,116‌

5.50%,

11/01/2039

(b)

800‌

922‌

5.65%,

11/01/2037

(b)

1,000‌

1,212‌

Louisiana

Public

Facilities

Authority

0.00%,

07/01/2039

(f)

278‌

—‌

Parish

of

St

James

LA

6.35%,

10/01/2040

(b)

3,000‌

4,031‌

Parish

of

St

John

the

Baptist

LA

2.10%,

06/01/2037

(a)

1,000‌

1,039‌

$

8,320‌

Maine

-

0.65%

Finance

Authority

of

Maine

5.25%,

01/01/2025

(b)

1,000‌

1,136‌

Maryland

-

0.38%

City

of

Westminster

MD

6.25%,

07/01/2044

600‌

664‌

Michigan

-

3.30%

City

of

Detroit

MI

5.00%,

04/01/2046

1,000‌

1,227‌

Kalamazoo

Economic

Development

Corp

5.00%,

05/15/2032

935‌

1,080‌

Michigan

Finance

Authority

5.00%,

07/01/2035

1,000‌

1,161‌

Michigan

Strategic

Fund

5.00%,

11/15/2043

1,000‌

1,161‌

5.00%,

11/15/2049

1,000‌

1,156‌

$

5,785‌

Missouri

-

0.94%

City

of

St

Louis

MO

Airport

Revenue

(credit

support

from

National

Public

Finance

Guarantee

Corp

)

5.50%,

07/01/2028

(c)

400‌

525‌

Health

&

Educational

Facilities

Authority

of

the

State

of

Missouri

5.00%,

02/01/2034

1,000‌

1,125‌

$

1,650‌

Montana

-

0.88%

City

of

Kalispell

MT

5.25%,

05/15/2037

1,400‌

1,547‌

Nevada

-

2.10%

City

of

Las

Vegas

NV

Special

Improvement

District

No

816

3.13%,

06/01/2046

1,000‌

1,022‌

Las

Vegas

Convention

&

Visitors

Authority

5.00%,

07/01/2043

(d)

1,396‌

1,694‌

State

of

Nevada

Department

of

Business

&

Industry

5.13%,

12/15/2037

(b)

981‌

970‌

$

3,686‌

New

Hampshire

-

1.54%

New

Hampshire

Business

Finance

Authority

2.95%,

04/01/2029

(a),(b)

1,000‌

1,091‌

New

Hampshire

Health

and

Education

Facilities

Authority

Act

5.00%,

08/01/2059

1,000‌

1,606‌

$

2,697‌

MUNICIPAL

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

New

Jersey

-

4.74%

Casino

Reinvestment

Development

Authority

Inc

5.25%,

11/01/2039

$

250‌

$

269‌

New

Jersey

Economic

Development

Authority

5.00%,

07/15/2028

500‌

600‌

5.00%,

06/15/2047

500‌

602‌

5.25%,

06/15/2040

55‌

65‌

5.25%,

06/15/2040

945‌

1,097‌

5.63%,

11/15/2030

1,500‌

1,674‌

5.75%,

09/15/2027

500‌

519‌

New

Jersey

Transportation

Trust

Fund

Authority

5.25%,

06/15/2032

2,000‌

2,302‌

South

Jersey

Port

Corp

5.00%,

01/01/2048

1,000‌

1,187‌

$

8,315‌

New

York

-

7.40%

New

York

Counties

Tobacco

Trust

VI

5.00%,

06/01/2041

400‌

456‌

New

York

State

Bridge

Authority

4.00%,

01/01/2046

725‌

865‌

New

York

State

Thruway

Authority

5.25%,

01/01/2056

1,000‌

1,177‌

New

York

Transportation

Development

Corp

3.00%,

08/01/2031

1,000‌

1,084‌

4.00%,

10/01/2030

1,000‌

1,198‌

4.00%,

12/01/2042

1,000‌

1,162‌

4.00%,

04/30/2053

1,000‌

1,151‌

5.00%,

01/01/2036

1,000‌

1,208‌

5.38%,

08/01/2036

1,000‌

1,275‌

Troy

Capital

Resource

Corp

4.00%,

09/01/2035

180‌

216‌

4.00%,

09/01/2036

280‌

336‌

Western

Regional

Off-Track

Betting

Corp

3.00%,

12/01/2026

(b)

1,340‌

1,342‌

4.13%,

12/01/2041

(b)

1,500‌

1,511‌

$

12,981‌

Ohio

-

4.02%

Buckeye

Tobacco

Settlement

Financing

Authority

5.00%,

06/01/2055

2,900‌

3,372‌

Cleveland-Cuyahoga

County

Port

Authority

4.50%,

12/01/2055

(b),(e)

1,000‌

1,073‌

Ohio

Air

Quality

Development

Authority

4.50%,

01/15/2048

(b)

1,000‌

1,174‌

5.00%,

07/01/2049

(b)

1,000‌

1,168‌

Ohio

State

Air

Quality

Development

Authority

Escrow

0.00%,

12/01/2023

(f),(g)

1,000‌

267‌

$

7,054‌

Oklahoma

-

1.36%

Oklahoma

Development

Finance

Authority

5.25%,

08/15/2043

1,000‌

1,228‌

Tulsa

County

Industrial

Authority

5.25%,

11/15/2045

1,000‌

1,155‌

$

2,383‌

Oregon

-

0.12%

Oregon

State

Business

Development

Commission

0.00%,

04/01/2031

(b),(f)

1,000‌

215‌

Pennsylvania

-

4.27%

Allegheny

County

Industrial

Development

Authority

4.88%,

11/01/2024

500‌

543‌

Allentown

Neighborhood

Improvement

Zone

Development

Authority

5.00%,

05/01/2042

(e)

1,000‌

1,255‌

Commonwealth

Financing

Authority

5.00%,

06/01/2028

1,000‌

1,267‌

5.00%,

06/01/2035

1,000‌

1,228‌

Schedule

of

Investments

Opportunistic

Municipal

Fund

See

accompanying

notes.

166

MUNICIPAL

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Pennsylvania

(continued)

Lancaster

County

Hospital

Authority/PA

5.00%,

07/01/2045

$

1,000‌

$

1,098‌

Pennsylvania

Economic

Development

Financing

Authority

3.25%,

08/01/2039

(b)

1,000‌

1,042‌

5.50%,

11/01/2044

1,000‌

1,066‌

$

7,499‌

Puerto

Rico

-

0.92%

Commonwealth

of

Puerto

Rico

0.00%,

07/01/2039

(f)

1,805‌

1,620‌

South

Carolina

-

2.11%

South

Carolina

Jobs-Economic

Development

Authority

5.25%,

11/15/2052

500‌

550‌

6.50%,

06/01/2051

(b)

3,000‌

3,145‌

$

3,695‌

South

Dakota

-

0.29%

Oglala

Sioux

Tribe

5.75%,

10/01/2025

(b)

500‌

Tennessee

-

2.91%

Chattanooga

Health

Educational

&

Housing

Facility

Board

5.00%,

10/01/2028

1,050‌

1,198‌

5.00%,

10/01/2035

500‌

561‌

Metropolitan

Nashville

Airport

Authority/The

5.00%,

07/01/2054

2,000‌

2,491‌

Nashville

Metropolitan

Development

&

Housing

Agency

5.13%,

06/01/2036

(b)

750‌

865‌

$

5,115‌

Texas

-

6.38%

City

of

Houston

TX

Airport

System

Revenue

4.00%,

07/15/2041

1,500‌

1,632‌

North

Texas

Tollway

Authority

5.00%,

01/01/2045

615‌

699‌

5.00%,

01/01/2048

500‌

599‌

Port

Beaumont

Navigation

District

3.00%,

01/01/2050

(b)

2,000‌

1,973‌

4.00%,

01/01/2050

(b)

3,500‌

3,622‌

Texas

Municipal

Gas

Acquisition

and

Supply

Corp

I

6.25%,

12/15/2026

1,990‌

2,334‌

Texas

Private

Activity

Bond

Surface

Transportation

Corp

7.00%,

12/31/2038

300‌

339‌

$

11,198‌

Utah

-

0.86%

Utah

Infrastructure

Agency

5.25%,

10/15/2033

1,250‌

1,510‌

Vermont

-

0.88%

Vermont

Economic

Development

Authority

4.63%,

04/01/2036

(a),(b)

1,300‌

1,552‌

Virginia

-

0.65%

Virginia

Small

Business

Financing

Authority

4.00%,

12/01/2036

1,000‌

1,145‌

Washington

-

0.67%

Washington

State

Housing

Finance

Commission

3.50%,

12/20/2035

997‌

1,170‌

Wisconsin

-

2.35%

Public

Finance

Authority

5.00%,

01/01/2024

500‌

549‌

5.00%,

12/01/2025

1,200‌

1,406‌

5.00%,

09/01/2039

(b)

1,000‌

1,162‌

MUNICIPAL

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Wisconsin

(continued)

Wisconsin

Health

&

Educational

Facilities

Authority

5.50%,

07/01/2023

$

45‌

$

45‌

6.00%,

07/01/2028

170‌

168‌

6.50%,

07/01/2033

300‌

292‌

7.00%,

07/01/2043

500‌

496‌

$

4,118‌

TOTAL

MUNICIPAL

BONDS

$

180,794‌

Total

Investments

$

183,006‌

Liability

for

Floating

Rate

Notes

Issued

in

Conjunction

with

Securities

Held

-

(4.38)%

Notes

with

interest

rates

of

0.05%

-

0.21%

at

and

contractual

maturity

of

collateral

from

2024-2036.

(h)

$

(7,691‌)

Total

Net

Investments

$

175,315‌

Other

Assets

and

Liabilities

- 0.09%

161‌

TOTAL

NET

ASSETS

-

100.00%

$

175,476‌

(a)

Certain

variable

rate

securities

are

not

based

on

a

published

reference

rate

and

spread

but

are

determined

by

the

issuer

or

agent

and

are

based

on

current

market

conditions. These

securities

do

not

indicate

a

reference

rate

and

spread

in

their

description.

Rate

shown

is

the

rate

in

effect

as

of

period

end.

(b)

Security

exempt

from

registration

under

Rule

144A

of

the

Securities

Act

of

1933.

These

securities

may

be

resold

in

transactions

exempt

from

registration,

normally

to

qualified

institutional

buyers.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$56,242

or

32.05%

of

net

assets.

(c)

Credit

support

indicates

investments

that

benefit

from

credit

enhancement

or

liquidity

support

provided

by

a

third

party

bank,

institution,

or

government

agency.

(d)

Security

or

portion

of

underlying

security

Inverse

Floaters

entered

into

by

the

fund.

(e)

Security

purchased

on

a

when-issued

basis.

(f)

Non-income

producing

security

(g)

The

value

of

these

investments

was

determined

using

significant

unobservable

inputs,

in

good

faith

by

the

Manager,

under

procedures

established

and

periodically

reviewed

by

the

Board

of

Directors.

(h)

Floating

rate

securities.

The

interest

rate(s)

shown

reflect

the

rates

in

effect

at

Portfolio

Summary (unaudited)

Sector

Percent

Revenue

Bonds

85.46‌%

General

Obligation

Unlimited

6.77‌%

Insured

4.15‌%

Tax

Allocation

3.01‌%

General

Obligation

Limited

1.40‌%

Investment

Companies

1.26‌%

Certificate

Participation

0.70‌%

Prerefunded

0.67‌%

Special

Assessment

0.58‌%

Special

Tax

0.29‌%

Liability

For

Floating

Rate

Notes

Issued

(4.38‌)%

Other

Assets

and

Liabilities

0.09‌%

TOTAL

NET

ASSETS

100.00%

Schedule

of

Investments

Origin

Emerging

Markets

Fund

See

accompanying

notes.

167

INVESTMENT

COMPANIES

-

2

.49

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

2

.49

%

BlackRock

Liquidity

FedFund

-

Institutional

Class

0.03%

(a),(b)

8,064,026‌

$

8,064‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

(a),(b),(c),(d)

88,192,044‌

88,192‌

$

96,256‌

TOTAL

INVESTMENT

COMPANIES

$

96,256‌

COMMON

STOCKS

-

97

.03

%

Shares

Held

Value

(000's)

Aerospace

&

Defense

-

0

.72

%

Bharat

Electronics

Ltd

10,903,400‌

$

27,817‌

Apparel

-

1

.11

%

Makalot

Industrial

Co

Ltd

1,211,000‌

10,398‌

Shenzhou

International

Group

Holdings

Ltd

1,493,000‌

32,363‌

$

42,761‌

Automobile

Manufacturers

-

0

.73

%

Kia

Corp

386,000‌

28,237‌

Automobile

Parts

&

Equipment

-

0

.43

%

Fangda

Special

Steel

Technology

Co

Ltd

13,269,000‌

16,686‌

Banks

-

8

.87

%

Bank

of

Chengdu

Co

Ltd

15,603,000‌

29,236‌

Bank

of

China

Ltd

142,200,000‌

49,832‌

China

Merchants

Bank

Co

Ltd

12,087,500‌

99,693‌

Grupo

Financiero

Banorte

SAB

de

CV

6,499,500‌

42,902‌

Powszechna

Kasa

Oszczednosci

Bank

Polski

SA

(d)

1,170,000‌

12,843‌

Sberbank

of

Russia

PJSC

ADR

4,025,500‌

71,891‌

Shinhan

Financial

Group

Co

Ltd

1,093,000‌

36,412‌

$

342,809‌

Beverages

-

0

.45

%

Ambev

SA

5,348,000‌

17,531‌

Building

Materials

-

2

.99

%

Xinyi

Glass

Holdings

Ltd

10,852,000‌

45,603‌

Zhuzhou

Kibing

Group

Co

Ltd

16,569,738‌

69,974‌

$

115,577‌

Chemicals

-

4

.49

%

Anhui

Guangxin

Agrochemical

Co

Ltd

3,909,976‌

21,271‌

Coromandel

International

Ltd

1,608,500‌

17,452‌

Hansol

Chemical

Co

Ltd

97,237‌

24,298‌

Kumho

Petrochemical

Co

Ltd

172,300‌

28,807‌

Lier

Chemical

Co

Ltd

2,248,959‌

10,428‌

Luxi

Chemical

Group

Co

Ltd

6,142,996‌

22,019‌

Sinoma

Science

&

Technology

Co

Ltd

4,412,947‌

20,383‌

Wanhua

Chemical

Group

Co

Ltd

1,100,969‌

18,173‌

Zhejiang

Satellite

Petrochemical

Co

Ltd

1,638,980‌

10,639‌

$

173,470‌

Coal

-

1

.38

%

China

Shenhua

Energy

Co

Ltd

14,030,000‌

31,025‌

Shaanxi

Coal

Industry

Co

Ltd

10,441,768‌

22,159‌

$

53,184‌

Computers

-

5

.61

%

Asustek

Computer

Inc

4,657,000‌

54,365‌

Gigabyte

Technology

Co

Ltd

6,695,500‌

21,119‌

Infosys

Ltd

ADR

3,820,418‌

91,003‌

LG

Corp

213,858‌

17,541‌

Phison

Electronics

Corp

2,124,700‌

32,563‌

$

216,591‌

Diversified

Financial

Services

-

8

.24

%

B3

SA

-

Brasil

Bolsa

Balcao

8,251,500‌

22,293‌

Chailease

Holding

Co

Ltd

4,488,844‌

43,062‌

Fubon

Financial

Holding

Co

Ltd

21,898,300‌

67,075‌

Hana

Financial

Group

Inc

1,614,000‌

62,501‌

KB

Financial

Group

Inc

788,800‌

35,883‌

KIWOOM

Securities

Co

Ltd

154,100‌

15,630‌

Korea

Investment

Holdings

Co

Ltd

196,500‌

16,091‌

Manappuram

Finance

Ltd

6,260,800‌

13,718‌

Muthoot

Finance

Ltd

1,443,200‌

29,877‌

Yuanta

Financial

Holding

Co

Ltd

13,480,000‌

12,143‌

$

318,273‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Electrical

Components

&

Equipment

-

1

.10

%

Delta

Electronics

Inc

2,095,400‌

$

20,411‌

LG

Innotek

Co

Ltd

120,100‌

22,200‌

$

42,611‌

Electronics

-

3

.91

%

BYD

Electronic

International

Co

Ltd

4,043,200‌

18,495‌

Hon

Hai

Precision

Industry

Co

Ltd

7,736,400‌

30,894‌

Lotes

Co

Ltd

1,054,700‌

20,502‌

Lotes

Co

Ltd

-

Rights

(d)

20,385‌

78‌

Q

Technology

Group

Co

Ltd

9,494,000‌

16,668‌

Samsung

Electro-Mechanics

Co

Ltd

111,800‌

17,741‌

Shenzhen

Topband

Co

Ltd

6,879,703‌

15,225‌

Silergy

Corp

86,000‌

12,300‌

TXC

Corp

4,686,000‌

19,223‌

$

151,126‌

Food

-

3

.47

%

BIM

Birlesik

Magazalar

AS

2,263,000‌

19,530‌

Dino

Polska

SA

(d),(e)

506,300‌

42,916‌

JBS

SA

10,082,000‌

59,254‌

Marfrig

Global

Foods

SA

3,123,000‌

12,430‌

$

134,130‌

Gas

-

2

.02

%

China

Resources

Gas

Group

Ltd

1,853,000‌

11,233‌

ENN

Energy

Holdings

Ltd

3,371,400‌

66,712‌

$

77,945‌

Healthcare

-

Products

-

0

.26

%

Jafron

Biomedical

Co

Ltd

1,339,948‌

10,172‌

Healthcare

-

Services

-

0

.49

%

Wuxi

Biologics

Cayman

Inc

(d),(e)

1,226,000‌

18,981‌

Home

Furnishings

-

1

.53

%

E

Ink

Holdings

Inc

12,088,300‌

33,961‌

Ecovacs

Robotics

Co

Ltd

657,920‌

14,965‌

JS

Global

Lifestyle

Co

Ltd

(e)

4,122,000‌

10,353‌

$

59,279‌

Insurance

-

1

.36

%

Cathay

Financial

Holding

Co

Ltd

14,651,000‌

31,464‌

Ping

An

Insurance

Group

Co

of

China

Ltd

2,724,300‌

21,095‌

$

52,559‌

Internet

-

8

.04

%

Alibaba

Group

Holding

Ltd

ADR

(d)

636,800‌

106,339‌

Meituan

(d),(e)

551,600‌

17,637‌

Naspers

Ltd

135,900‌

23,448‌

NAVER

Corp

55,500‌

21,015‌

Tencent

Holdings

Ltd

2,303,605‌

142,277‌

$

310,716‌

Iron

&

Steel

-

2

.84

%

Kumba

Iron

Ore

Ltd

(f)

531,100‌

23,851‌

Vale

SA

4,514,500‌

85,780‌

$

109,631‌

Mining

-

3

.48

%

Anglo

American

Platinum

Ltd

(f)

186,800‌

21,187‌

China

Hongqiao

Group

Ltd

7,737,000‌

11,476‌

Grupo

Mexico

SAB

de

CV

5,091,700‌

23,608‌

Impala

Platinum

Holdings

Ltd

1,572,000‌

24,084‌

MMC

Norilsk

Nickel

PJSC

ADR

957,346‌

31,449‌

NMDC

Ltd

10,767,000‌

22,632‌

$

134,436‌

Miscellaneous

Manufacturers

-

1

.95

%

Elite

Material

Co

Ltd

2,583,000‌

21,752‌

Sunny

Optical

Technology

Group

Co

Ltd

1,768,400‌

53,515‌

$

75,267‌

Oil

&

Gas

-

2

.80

%

LUKOIL

PJSC

ADR

548,000‌

46,415‌

Novatek

PJSC

102,600‌

24,318‌

PetroChina

Co

Ltd

44,000,000‌

19,220‌

PTT

Exploration

&

Production

PCL

5,266,000‌

18,173‌

$

108,126‌

Schedule

of

Investments

Origin

Emerging

Markets

Fund

See

accompanying

notes.

168

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Pharmaceuticals

-

2

.10

%

Aurobindo

Pharma

Ltd

1,438,800‌

$

14,313‌

Changchun

High

&

New

Technology

Industry

Group

Inc

330,563‌

13,074‌

CSPC

Pharmaceutical

Group

Ltd

13,771,000‌

17,470‌

Shanghai

Fosun

Pharmaceutical

Group

Co

Ltd

3,286,800‌

21,085‌

Sinopharm

Group

Co

Ltd

5,942,000‌

15,292‌

$

81,234‌

Real

Estate

-

0

.52

%

Country

Garden

Services

Holdings

Co

Ltd

2,650,100‌

20,222‌

Retail

-

3

.23

%

ANTA

Sports

Products

Ltd

3,405,600‌

69,954‌

Li

Ning

Co

Ltd

1,717,000‌

23,025‌

Zhongsheng

Group

Holdings

Ltd

3,780,100‌

31,605‌

$

124,584‌

Semiconductors

-

17

.80

%

ASE

Technology

Holding

Co

Ltd

2,686,000‌

12,369‌

Maxscend

Microelectronics

Co

Ltd

466,078‌

27,379‌

MediaTek

Inc

1,736,900‌

56,323‌

Novatek

Microelectronics

Corp

2,909,500‌

46,952‌

Parade

Technologies

Ltd

713,100‌

44,873‌

Realtek

Semiconductor

Corp

2,534,000‌

50,504‌

Samsung

Electronics

Co

Ltd

27,690‌

45,210‌

Samsung

Electronics

Co

Ltd

1,578,749‌

104,226‌

Taiwan

Semiconductor

Manufacturing

Co

Ltd

7,585,956‌

166,400‌

Taiwan

Semiconductor

Manufacturing

Co

Ltd

ADR

732,417‌

87,165‌

Vanguard

International

Semiconductor

Corp

2,278,000‌

12,117‌

Will

Semiconductor

Co

Ltd

Shanghai

912,936‌

34,263‌

$

687,781‌

Software

-

3

.32

%

HCL

Technologies

Ltd

7,923,300‌

128,099‌

Telecommunications

-

0

.81

%

MTN

Group

Ltd

(d)

3,426,000‌

31,446‌

Textiles

-

0

.64

%

Tongkun

Group

Co

Ltd

6,673,903‌

24,690‌

Transportation

-

0

.34

%

SITC

International

Holdings

Co

Ltd

3,017,000‌

13,142‌

TOTAL

COMMON

STOCKS

$

3,749,113‌

PREFERRED

STOCKS

-

1

.28

%

Shares

Held

Value

(000's)

Banks

-

1

.28

%

Banco

Bradesco

SA

28.09%

11,065,087‌

$

49,282‌

TOTAL

PREFERRED

STOCKS

$

49,282‌

Total

Investments

$

3,894,651‌

Other

Assets

and

Liabilities

- (0.80)%

(

30,915‌

)

TOTAL

NET

ASSETS

-

100.00%

$

3,863,736‌

(a)

Current

yield

shown

is

as

of

period

end.

(b)

Security

or

a

portion

of

the

security

was

received

as

collateral

for

securities

lending.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$27,304

or

0.71%

of

net

assets.

(c)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(d)

Non-income

producing

security

(e)

Security

exempt

from

registration

under

Rule

144A

of

the

Securities

Act

of

1933.

These

securities

may

be

resold

in

transactions

exempt

from

registration,

normally

to

qualified

institutional

buyers.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$89,887

or

2.33%

of

net

assets.

(f)

Security

or

a

portion

of

the

security

was

on

loan. At

the

end

of

the

period,

the

value

of

these

securities

totaled

$25,809

or

0.67%

of

net

assets.

Portfolio

Summary (unaudited)

Location

Percent

China

33

.58‌

%

Taiwan

22

.01‌

%

Korea,

Republic

Of

12

.31‌

%

India

8

.94‌

%

Brazil

6

.38‌

%

Russian

Federation

4

.50‌

%

United

States

3

.65‌

%

South

Africa

3

.21‌

%

Hong

Kong

2

.08‌

%

Mexico

1

.72‌

%

Poland

1

.44‌

%

Turkey

0

.51‌

%

Thailand

0

.47‌

%

Other

Assets

and

Liabilities

(

0

.80‌

)

%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

Purchases

Sales

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

$

77,485‌

$

2,885,717‌

$

2,875,010‌

$

88,192‌

$

77,485‌

$

2,885,717‌

$

2,875,010‌

$

88,192‌

Income

(a)

Realized

Gain/Loss

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

Loss

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

(a)

Amount

excludes

earnings

from

securities

lending

collateral.

Schedule

of

Investments

Small-MidCap

Dividend

Income

Fund

See

accompanying

notes.

169

INVESTMENT

COMPANIES

-

1

.14

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

1

.14

%

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

(a),(b),(c)

12,632,398‌

$

12,632‌

TOTAL

INVESTMENT

COMPANIES

$

12,632‌

COMMON

STOCKS

-

98

.87

%

Shares

Held

Value

(000's)

Advertising

-

1

.61

%

Interpublic

Group

of

Cos

Inc/The

479,919‌

$

17,867‌

Automobile

Parts

&

Equipment

-

1

.31

%

Linamar

Corp

256,999‌

14,561‌

Banks

-

10

.37

%

Bank

OZK

677,587‌

28,750‌

Cathay

General

Bancorp

390,987‌

15,554‌

Cullen/Frost

Bankers

Inc

122,459‌

13,987‌

East

West

Bancorp

Inc

396,596‌

29,086‌

ServisFirst

Bancshares

Inc

277,831‌

20,398‌

Washington

Trust

Bancorp

Inc

142,355‌

7,582‌

$

115,357‌

Chemicals

-

3

.53

%

HB

Fuller

Co

128,628‌

8,691‌

Huntsman

Corp

543,124‌

14,355‌

RPM

International

Inc

196,801‌

16,195‌

$

39,241‌

Commercial

Services

-

0

.92

%

John

Wiley

&

Sons

Inc

177,097‌

10,289‌

Computers

-

3

.40

%

Amdocs

Ltd

361,935‌

27,880‌

Leidos

Holdings

Inc

101,096‌

9,918‌

$

37,798‌

Consumer

Products

-

2

.22

%

Avery

Dennison

Corp

109,404‌

24,659‌

Diversified

Financial

Services

-

3

.87

%

Federal

Agricultural

Mortgage

Corp

106,587‌

10,435‌

Hamilton

Lane

Inc

143,619‌

12,361‌

Raymond

James

Financial

Inc

144,658‌

20,238‌

$

43,034‌

Electric

-

2

.74

%

ALLETE

Inc

281,593‌

18,985‌

IDACORP

Inc

108,836‌

11,466‌

$

30,451‌

Electrical

Components

&

Equipment

-

3

.05

%

Energizer

Holdings

Inc

331,506‌

13,041‌

Littelfuse

Inc

73,404‌

20,950‌

$

33,991‌

Electronics

-

3

.55

%

Hubbell

Inc

92,649‌

19,096‌

nVent

Electric

PLC

594,709‌

20,434‌

$

39,530‌

Engineering

&

Construction

-

0

.51

%

Comfort

Systems

USA

Inc

74,011‌

5,623‌

Food

-

1

.66

%

Ingredion

Inc

210,245‌

18,472‌

Gas

-

0

.84

%

NiSource

Inc

378,015‌

9,318‌

Hand

&

Machine

Tools

-

4

.89

%

Lincoln

Electric

Holdings

Inc

138,266‌

19,304‌

MSA

Safety

Inc

100,038‌

16,290‌

Snap-on

Inc

83,633‌

18,813‌

$

54,407‌

Healthcare

-

Products

-

5

.57

%

CONMED

Corp

184,586‌

24,243‌

Hill-Rom

Holdings

Inc

163,331‌

23,778‌

STERIS

PLC

64,791‌

13,931‌

$

61,952‌

Healthcare

-

Services

-

0

.80

%

Select

Medical

Holdings

Corp

257,001‌

8,885‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Home

Builders

-

3

.16

%

LCI

Industries

165,230‌

$

23,406‌

MDC

Holdings

Inc

225,951‌

11,806‌

$

35,212‌

Insurance

-

5

.44

%

Assured

Guaranty

Ltd

370,747‌

18,486‌

Fidelity

National

Financial

Inc

582,414‌

28,439‌

James

River

Group

Holdings

Ltd

371,486‌

13,667‌

$

60,592‌

Leisure

Products

&

Services

-

4

.92

%

Acushnet

Holdings

Corp

555,403‌

27,748‌

Brunswick

Corp/DE

278,994‌

27,026‌

$

54,774‌

Machinery

-

Diversified

-

4

.36

%

Albany

International

Corp

199,441‌

15,622‌

Crane

Co

159,872‌

16,270‌

Nordson

Corp

69,705‌

16,632‌

$

48,524‌

Media

-

0

.90

%

Cable

One

Inc

4,776‌

10,028‌

Metal

Fabrication

&

Hardware

-

1

.39

%

Timken

Co/The

209,649‌

15,418‌

Miscellaneous

Manufacturers

-

1

.63

%

Donaldson

Co

Inc

147,359‌

9,983‌

EnPro

Industries

Inc

95,390‌

8,157‌

$

18,140‌

Oil

&

Gas

-

3

.23

%

Cimarex

Energy

Co

214,836‌

13,797‌

Diamondback

Energy

Inc

155,965‌

12,031‌

HollyFrontier

Corp

313,095‌

10,122‌

$

35,950‌

Packaging

&

Containers

-

1

.38

%

Packaging

Corp

of

America

101,239‌

15,358‌

Pharmaceuticals

-

0

.38

%

Phibro

Animal

Health

Corp

175,010‌

4,251‌

Pipelines

-

1

.35

%

Targa

Resources

Corp

341,944‌

15,018‌

REITs

-

11

.96

%

Agree

Realty

Corp

207,152‌

15,443‌

Camden

Property

Trust

68,802‌

10,323‌

CyrusOne

Inc

232,547‌

17,901‌

EastGroup

Properties

Inc

89,656‌

16,161‌

Four

Corners

Property

Trust

Inc

380,634‌

10,890‌

Granite

Real

Estate

Investment

Trust

241,884‌

17,462‌

Medical

Properties

Trust

Inc

776,814‌

15,909‌

STORE

Capital

Corp

446,729‌

16,114‌

Terreno

Realty

Corp

192,899‌

12,888‌

$

133,091‌

Retail

-

1

.17

%

Papa

John's

International

Inc

102,259‌

13,041‌

Semiconductors

-

3

.81

%

MKS

Instruments

Inc

186,470‌

27,445‌

Monolithic

Power

Systems

Inc

30,279‌

14,986‌

$

42,431‌

Shipbuilding

-

1

.34

%

Huntington

Ingalls

Industries

Inc

73,312‌

14,968‌

Software

-

0

.36

%

ManTech

International

Corp/VA

51,029‌

4,040‌

Toys,

Games

&

Hobbies

-

1

.25

%

Hasbro

Inc

142,068‌

13,967‌

TOTAL

COMMON

STOCKS

$

1,100,238‌

Total

Investments

$

1,112,870‌

Other

Assets

and

Liabilities

- (0.01)%

(

112‌

)

TOTAL

NET

ASSETS

-

100.00%

$

1,112,758‌

Schedule

of

Investments

Small-MidCap

Dividend

Income

Fund

See

accompanying

notes.

170

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Non-income

producing

security

(c)

Current

yield

shown

is

as

of

period

end.

Portfolio

Summary (unaudited)

Sector

Percent

Financial

31

.64‌

%

Industrial

22

.10‌

%

Consumer,

Cyclical

11

.81‌

%

Consumer,

Non-cyclical

11

.55‌

%

Technology

7

.57‌

%

Energy

4

.58‌

%

Utilities

3

.58‌

%

Basic

Materials

3

.53‌

%

Communications

2

.51‌

%

Money

Market

Funds

1

.14‌

%

Other

Assets

and

Liabilities

(

0

.01‌

)

%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

Purchases

Sales

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

$

15,508‌

$

529,117‌

$

531,993‌

$

12,632‌

$

15,508‌

$

529,117‌

$

531,993‌

$

12,632‌

Income

(a)

Realized

Gain/Loss

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

Loss

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

(a)

Amount

excludes

earnings

from

securities

lending

collateral.

Schedule

of

Investments

Small-MidCap

Growth

Fund

See

accompanying

notes.

171

INVESTMENT

COMPANIES

-

2

.26

%

Shares

Held

Value

(000's)

Money

Market

Funds

-

2

.26

%

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

(a),(b),(c)

260,191‌

$

260‌

TOTAL

INVESTMENT

COMPANIES

$

260‌

COMMON

STOCKS

-

98

.12

%

Shares

Held

Value

(000's)

Apparel

-

4

.71

%

Deckers

Outdoor

Corp

(b)

368‌

$

154‌

Levi

Strauss

&

Co

9,316‌

244‌

Tapestry

Inc

3,554‌

143‌

$

541‌

Banks

-

3

.52

%

Signature

Bank/New

York

NY

572‌

148‌

SVB

Financial

Group

(b)

459‌

257‌

$

405‌

Biotechnology

-

8

.09

%

Arrowhead

Pharmaceuticals

Inc

(b)

874‌

59‌

Denali

Therapeutics

Inc

(b)

1,095‌

58‌

Fate

Therapeutics

Inc

(b)

759‌

56‌

Horizon

Therapeutics

Plc

(b)

4,038‌

436‌

Maravai

LifeSciences

Holdings

Inc

(b)

3,455‌

204‌

Novavax

Inc

(b)

486‌

116‌

$

929‌

Building

Materials

-

5

.14

%

Eagle

Materials

Inc

1,260‌

198‌

Masonite

International

Corp

(b)

726‌

87‌

Summit

Materials

Inc

(b)

4,724‌

159‌

Trex

Co

Inc

(b)

1,334‌

146‌

$

590‌

Chemicals

-

2

.80

%

Albemarle

Corp

485‌

115‌

Element

Solutions

Inc

9,108‌

207‌

$

322‌

Commercial

Services

-

1

.37

%

Herc

Holdings

Inc

(b)

1,193‌

157‌

Computers

-

1

.59

%

Zscaler

Inc

(b)

658‌

183‌

Cosmetics

&

Personal

Care

-

1

.86

%

Coty

Inc

(b)

12,335‌

121‌

elf

Beauty

Inc

(b)

3,014‌

93‌

$

214‌

Diversified

Financial

Services

-

3

.63

%

OneMain

Holdings

Inc

3,656‌

211‌

Tradeweb

Markets

Inc

2,361‌

206‌

$

417‌

Electrical

Components

&

Equipment

-

1

.37

%

Littelfuse

Inc

549‌

157‌

Energy

-

Alternate

Sources

-

1

.31

%

Enphase

Energy

Inc

(b)

869‌

151‌

Entertainment

-

0

.84

%

International

Game

Technology

PLC

(b)

4,469‌

96‌

Healthcare

-

Products

-

12

.42

%

Alphatec

Holdings

Inc

(b)

10,319‌

149‌

AtriCure

Inc

(b)

1,907‌

140‌

Avantor

Inc

(b)

5,646‌

223‌

Axonics

Inc

(b)

3,480‌

261‌

Bio-Techne

Corp

311‌

155‌

CONMED

Corp

622‌

82‌

Natera

Inc

(b)

1,827‌

216‌

Omnicell

Inc

(b)

898‌

140‌

SI-BONE

Inc

(b)

2,481‌

61‌

$

1,427‌

Healthcare

-

Services

-

1

.20

%

Community

Health

Systems

Inc

(b)

11,242‌

138‌

Home

Builders

-

1

.37

%

Meritage

Homes

Corp

(b)

1,414‌

158‌

Home

Furnishings

-

1

.51

%

Sonos

Inc

(b)

4,370‌

174‌

COMMON

STOCKS

(continued)

Shares

Held

Value

(000’s)

Internet

-

3

.79

%

Criteo

SA

ADR

(b)

3,481‌

$

131‌

Revolve

Group

Inc

(b)

1,409‌

81‌

Zendesk

Inc

(b)

1,807‌

223‌

$

435‌

Machinery

-

Construction

&

Mining

-

0

.94

%

Oshkosh

Corp

939‌

108‌

Machinery

-

Diversified

-

4

.78

%

Altra

Industrial

Motion

Corp

1,957‌

115‌

Chart

Industries

Inc

(b)

946‌

178‌

Middleby

Corp/The

(b)

1,401‌

256‌

$

549‌

Mining

-

1

.29

%

Livent

Corp

(b)

5,955‌

148‌

Oil

&

Gas

-

1

.71

%

Matador

Resources

Co

4,733‌

136‌

Ovintiv

Inc

2,228‌

61‌

$

197‌

Pharmaceuticals

-

1

.91

%

Option

Care

Health

Inc

(b)

8,203‌

219‌

Retail

-

6

.75

%

Academy

Sports

&

Outdoors

Inc

(b)

5,110‌

226‌

BJ's

Wholesale

Club

Holdings

Inc

(b)

4,232‌

240‌

Five

Below

Inc

(b)

653‌

139‌

Floor

&

Decor

Holdings

Inc

(b)

1,380‌

170‌

$

775‌

Semiconductors

-

6

.52

%

Ambarella

Inc

(b)

1,585‌

164‌

Entegris

Inc

1,628‌

196‌

MACOM

Technology

Solutions

Holdings

Inc

(b)

1,868‌

113‌

Monolithic

Power

Systems

Inc

185‌

92‌

ON

Semiconductor

Corp

(b)

1,908‌

85‌

Synaptics

Inc

(b)

524‌

99‌

$

749‌

Software

-

15

.59

%

Avalara

Inc

(b)

1,119‌

201‌

Dynatrace

Inc

(b)

3,241‌

223‌

Everbridge

Inc

(b)

1,535‌

241‌

Manhattan

Associates

Inc

(b)

1,544‌

252‌

MongoDB

Inc

(b)

533‌

209‌

Nutanix

Inc

(b)

6,503‌

240‌

Qualtrics

International

Inc

(b)

3,276‌

148‌

ZoomInfo

Technologies

Inc

(b)

4,259‌

277‌

$

1,791‌

Telecommunications

-

2

.11

%

Arista

Networks

Inc

(b)

657‌

243‌

TOTAL

COMMON

STOCKS

$

11,273‌

Total

Investments

$

11,533‌

Other

Assets

and

Liabilities

- (0.38)%

(

44‌

)

TOTAL

NET

ASSETS

-

100.00%

$

11,489‌

(a)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(b)

Non-income

producing

security

(c)

Current

yield

shown

is

as

of

period

end.

Schedule

of

Investments

Small-MidCap

Growth

Fund

See

accompanying

notes.

172

Portfolio

Summary (unaudited)

Sector

Percent

Consumer,

Non-cyclical

26

.85‌

%

Technology

23

.70‌

%

Consumer,

Cyclical

15

.18‌

%

Industrial

12

.23‌

%

Financial

7

.15‌

%

Communications

5

.90‌

%

Basic

Materials

4

.09‌

%

Energy

3

.02‌

%

Money

Market

Funds

2

.26‌

%

Other

Assets

and

Liabilities

(

0

.38‌

)

%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

Purchases

Sales

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

$

47‌

$

5,784‌

$

5,571‌

$

260‌

$

47‌

$

5,784‌

$

5,571‌

$

260‌

Income

(a)

Realized

Gain/Loss

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

Loss

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

(a)

Amount

excludes

earnings

from

securities

lending

collateral.

Schedule

of

Investments

Spectrum

Preferred

and

Capital

Securities

Income

Fund

See

accompanying

notes.

173

INVESTMENT

COMPANIES

-

3.31%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

0.41%

Invesco

Preferred

ETF

491,033‌

$

7,429‌

iShares

Preferred

&

Income

Securities

ETF

(a)

698,982‌

27,540‌

$

34,969‌

Money

Market

Funds

-

2.90%

BlackRock

Liquidity

FedFund

-

Institutional

Class

0.03%

(b),(c)

14,279,728‌

14,280‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

(b),(c),(d),(e)

230,734,302‌

230,734‌

$

245,014‌

TOTAL

INVESTMENT

COMPANIES

$

279,983‌

CONVERTIBLE

PREFERRED

STOCKS

-

0.99%

Shares

Held

Value

(000's)

Banks

-

0.99%

Bank

of

America

Corp

7.25%

(f)

1,229‌

$

1,804‌

Wells

Fargo

&

Co

7.50%

(f)

55,070‌

82,110‌

$

83,914‌

TOTAL

CONVERTIBLE

PREFERRED

STOCKS

$

83,914‌

PREFERRED

STOCKS

-

8.94%

Shares

Held

Value

(000's)

Banks

-

3.11%

AgriBank

FCB

6.88%,

01/01/2024

(f)

61,700‌

$

6,664‌

3

Month

USD

LIBOR

+

4.23%

Associated

Banc-Corp

5.63%,

09/15/2025

(a),(f)

201,624‌

5,555‌

Associated

Banc-Corp

5.88%,

12/15/2023

(a),(f)

2,148‌

59‌

Bank

of

America

Corp

4.38%,

11/03/2025

(a),(f)

352,717‌

9,199‌

Bank

of

America

Corp

5.00%,

09/17/2024

(f)

593‌

16‌

Bank

of

Hawaii

Corp

4.38%,

08/01/2026

(a),(f)

1,981‌

51‌

Citigroup

Inc

6.88%,

11/15/2023

(f)

414,370‌

11,577‌

3

Month

USD

LIBOR

+

4.13%

Citizens

Financial

Group

Inc

5.00%,

01/06/2025

(f)

6,909‌

184‌

Citizens

Financial

Group

Inc

6.35%,

04/06/2024

(a),(f)

14,879‌

423‌

3

Month

USD

LIBOR

+

3.64%

Cullen/Frost

Bankers

Inc

4.45%,

12/15/2025

(a),(f)

382,212‌

10,106‌

First

Republic

Bank/CA

0.00%,

08/30/2026

(e),(f)

140,000‌

3,468‌

First

Republic

Bank/CA

4.13%,

10/30/2025

(f)

54‌

1‌

Fulton

Financial

Corp

5.13%,

01/15/2026

(f)

450,381‌

12,160‌

Goldman

Sachs

Group

Inc

/The

5.50%,

05/10/2023

(a),(f)

723,967‌

19,677‌

3

Month

USD

LIBOR

+

3.64%

Huntington

Bancshares

Inc

/OH

5.88%,

10/15/2021

(f)

320,024‌

8,365‌

JPMorgan

Chase

&

Co

4.75%,

12/01/2024

(a),(f)

277,529‌

7,324‌

JPMorgan

Chase

&

Co

5.75%,

12/01/2023

(f)

222,039‌

5,999‌

KeyCorp

6.13%,

12/15/2026

(a),(f)

746,390‌

22,660‌

3

Month

USD

LIBOR

+

3.89%

Morgan

Stanley

4.88%,

01/15/2025

(f)

7,107‌

192‌

Morgan

Stanley

5.85%,

04/15/2027

(f)

649,481‌

19,394‌

3

Month

USD

LIBOR

+

3.49%

Northern

Trust

Corp

4.70%,

01/01/2025

(f)

253‌

7‌

PNC

Financial

Services

Group

Inc

/The

6.13%,

05/01/2022

(a),(f)

1,239,905‌

32,250‌

3

Month

USD

LIBOR

+

4.07%

Regions

Financial

Corp

4.45%,

06/15/2026

(f)

375,234‌

9,591‌

Regions

Financial

Corp

5.70%,

05/15/2029

(f)

328,950‌

9,546‌

3

Month

USD

LIBOR

+

3.15%

State

Street

Corp

5.90%,

03/15/2024

(f)

236,076‌

6,669‌

3

Month

USD

LIBOR

+

3.11%

Synovus

Financial

Corp

5.88%,

07/01/2024

(f)

344,110‌

9,515‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.13%

Truist

Financial

Corp

4.75%,

09/01/2025

(f)

475,202‌

12,474‌

US

Bancorp

3.50%,

10/01/2021

(f)

13,000‌

325‌

3

Month

USD

LIBOR

+

0.60%

US

Bancorp

3.75%,

01/15/2026

(a),(f)

13,090‌

327‌

US

Bancorp

4.00%,

04/15/2026

(a),(f)

46,768‌

1,200‌

US

Bancorp

5.50%,

10/15/2023

(f)

323‌

9‌

US

Bancorp

6.50%,

01/15/2022

(f)

234,945‌

6,038‌

3

Month

USD

LIBOR

+

4.47%

PREFERRED

STOCKS

(continued)

Shares

Held

Value

(000’s)

Banks

(continued)

Valley

National

Bancorp

6.25%,

06/30/2025

(f)

170,096‌

$

5,183‌

3

Month

USD

LIBOR

+

3.85%

Webster

Financial

Corp

5.25%,

12/15/2022

(a),(f)

194,856‌

5,222‌

Wells

Fargo

&

Co

4.75%,

03/15/2025

(f)

338,394‌

8,754‌

Wells

Fargo

&

Co

5.63%,

06/15/2022

(f)

196,171‌

5,046‌

Wells

Fargo

&

Co

5.85%,

09/15/2023

(a),(f)

62,555‌

1,677‌

3

Month

USD

LIBOR

+

3.09%

Wells

Fargo

&

Co

6.63%,

03/15/2024

(f)

207,457‌

5,753‌

3

Month

USD

LIBOR

+

3.69%

$

262,660‌

Diversified

Financial

Services

-

0.29%

Affiliated

Managers

Group

Inc

4.20%,

09/30/2061

160,000‌

3,992‌

Affiliated

Managers

Group

Inc

5.88%,

03/30/2059

147,110‌

4,025‌

Capital

One

Financial

Corp

4.80%,

06/01/2025

(f)

167,734‌

4,343‌

Capital

One

Financial

Corp

5.00%,

12/01/2024

(f)

345,769‌

9,069‌

Stifel

Financial

Corp

4.50%,

08/15/2026

(f)

110,647‌

2,827‌

$

24,256‌

Electric

-

1.10%

Alabama

Power

Co

5.00%,

10/01/2022

(f)

567,187‌

14,996‌

Algonquin

Power

&

Utilities

Corp

6.20%,

07/01/2079

490,152‌

13,724‌

3

Month

USD

LIBOR

+

4.01%

CMS

Energy

Corp

5.63%,

03/15/2078

420‌

11‌

CMS

Energy

Corp

5.88%,

03/01/2079

118,402‌

3,217‌

DTE

Energy

Co

5.25%,

12/01/2077

315,130‌

8,215‌

Duke

Energy

Corp

5.75%,

06/15/2024

(a),(f)

68,264‌

1,895‌

Entergy

Louisiana

LLC

4.88%,

09/01/2066

24,691‌

622‌

Entergy

Texas

Inc

5.38%,

10/15/2024

(f)

30,000‌

807‌

Georgia

Power

Co

5.00%,

10/01/2077

259,065‌

6,839‌

Integrys

Holding

Inc

6.00%,

08/01/2073

69,231‌

1,822‌

3

Month

USD

LIBOR

+

3.22%

Interstate

Power

and

Light

Co

5.10%,

10/01/2021

(f)

451,479‌

11,874‌

National

Rural

Utilities

Cooperative

Finance

Corp

5.50%,

05/15/2064

143,523‌

3,891‌

NextEra

Energy

Capital

Holdings

Inc

5.65%,

03/01/2079

86,675‌

2,399‌

Southern

Co/The

4.95%,

01/30/2080

(a)

239,031‌

6,389‌

Southern

Co/The

5.25%,

12/01/2077

555,000‌

14,730‌

Southern

Co/The

5.25%,

10/01/2076

47,323‌

1,201‌

$

92,632‌

Food

-

0.30%

Dairy

Farmers

of

America

Inc

7.88%,

10/01/2021

(f),(g)

16,000‌

1,600‌

Dairy

Farmers

of

America

Inc

7.88%,

12/01/2025

(f),(g)

236,300‌

23,985‌

$

25,585‌

Gas

-

0.01%

Entergy

New

Orleans

LLC

5.00%,

12/01/2052

(a)

2,683‌

69‌

Entergy

New

Orleans

LLC

5.50%,

04/01/2066

33,898‌

864‌

NiSource

Inc

6.50%,

03/15/2024

(f)

953‌

26‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.63%

$

959‌

Insurance

-

1.07%

Allstate

Corp/The

4.75%,

01/15/2025

(a),(f)

153,679‌

4,194‌

Allstate

Corp/The

5.10%,

01/15/2053

537,816‌

14,521‌

3

Month

USD

LIBOR

+

3.17%

Allstate

Corp/The

5.10%,

10/15/2024

(a),(f)

7,000‌

190‌

American

Financial

Group

Inc

/OH

5.63%,

06/01/2060

126,116‌

3,549‌

American

Financial

Group

Inc

/OH

5.88%,

03/30/2059

(a)

101,467‌

2,801‌

American

International

Group

Inc

5.85%,

03/15/2024

(a),(f)

15,000‌

408‌

Arch

Capital

Group

Ltd

5.25%,

09/30/2021

(f)

289,487‌

7,315‌

Arch

Capital

Group

Ltd

5.45%,

08/17/2022

(f)

53,235‌

1,403‌

Schedule

of

Investments

Spectrum

Preferred

and

Capital

Securities

Income

Fund

See

accompanying

notes.

174

PREFERRED

STOCKS

(continued)

Shares

Held

Value

(000’s)

Insurance

(continued)

Equitable

Holdings

Inc

4.30%,

03/15/2026

(a),(f)

362,625‌

$

9,131‌

Equitable

Holdings

Inc

5.25%,

12/15/2024

(f)

474,991‌

12,815‌

Hartford

Financial

Services

Group

Inc

/The

7.88%,

04/15/2042

1,038,497‌

27,385‌

3

Month

USD

LIBOR

+

5.60%

MetLife

Inc

4.75

%,

03/15/2025

(a),(f)

27,969‌

744‌

RenaissanceRe

Holdings

Ltd

4.20%,

07/15/2026

(a),(f)

136,352‌

3,465‌

RenaissanceRe

Holdings

Ltd

5.75%,

06/30/2023

(f)

25,958‌

694‌

Voya

Financial

Inc

5.35%,

09/15/2029

(a),(f)

72,909‌

2,165‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.21%

W

R

Berkley

Corp

5.70%,

03/30/2058

(a)

1,833‌

50‌

$

90,830‌

Pipelines

-

0.00%

Enbridge

Inc

6.38%,

04/15/2078

2,031‌

55‌

3

Month

USD

LIBOR

+

3.59%

REITs

-

1.37%

Federal

Realty

Investment

Trust

5.00%,

09/29/2022

(f)

49,135‌

1,303‌

Kimco

Realty

Corp

5.13%,

08/16/2022

(f)

12,477‌

326‌

Kimco

Realty

Corp

5.25%,

12/20/2022

(f)

406,949‌

10,898‌

National

Retail

Properties

Inc

5.20%,

10/11/2021

(f)

119,459‌

3,014‌

Prologis

Inc

8.54%,

11/13/2026

(f)

162,500‌

11,862‌

PS

Business

Parks

Inc

4.88%,

11/04/2024

(a),(f)

3,847‌

108‌

PS

Business

Parks

Inc

5.25%,

09/21/2022

(f)

57,755‌

1,531‌

Public

Storage

0.00%,

08/17/2026

(a),(e),(f)

54,614‌

1,369‌

Public

Storage

4.00%,

06/16/2026

(f)

785,000‌

19,939‌

Public

Storage

4.13%,

08/14/2025

(f)

316,800‌

8,275‌

Public

Storage

4.63%,

06/17/2025

(f)

277,658‌

7,691‌

Public

Storage

4.75%,

12/20/2024

(a),(f)

185,477‌

5,166‌

Public

Storage

4.90%,

10/14/2021

(f)

4,647‌

118‌

Public

Storage

5.05%,

08/09/2022

(a),(f)

177,565‌

4,700‌

Public

Storage

5.60%,

03/11/2024

(a),(f)

311,855‌

8,738‌

Vornado

Realty

Trust

5.25%,

11/24/2025

(f)

200,306‌

5,508‌

Vornado

Realty

Trust

5.25%,

12/13/2022

(f)

382,922‌

10,159‌

Vornado

Realty

Trust

5.40%,

10/01/2021

(f)

40,136‌

1,049‌

Vornado

Realty

Trust

5.70%,

10/01/2021

(f)

531,176‌

13,827‌

$

115,581‌

Savings

&

Loans

-

0.06%

People's

United

Financial

Inc

5.63%,

12/15/2026

(f)

94,067‌

2,712‌

3

Month

USD

LIBOR

+

4.02%

Sterling

Bancorp/DE

6.50%,

10/15/2022

(f)

42,713‌

1,116‌

Washington

Federal

Inc

4.88%,

04/15/2026

(f)

55,040‌

1,439‌

$

5,267‌

Sovereign

-

0.80%

CoBank

ACB

6.13%,

01/01/2022

(f)

8,000‌

832‌

CoBank

ACB

6.20%,

01/01/2025

(f)

65,000‌

7,150‌

3

Month

USD

LIBOR

+

3.74%

CoBank

ACB

6.25%,

10/01/2022

(f)

296,500‌

30,688‌

3

Month

USD

LIBOR

+

4.56%

Farm

Credit

Bank

of

Texas

6.75%,

09/15/2023

(f),(g)

270,500‌

28,943‌

3

Month

USD

LIBOR

+

4.01%

$

67,613‌

Telecommunications

-

0.83%

AT&T

Inc

4.75%,

02/18/2025

(f)

2,641,038‌

69,327‌

AT&T

Inc

5.00%,

12/12/2024

(f)

40,144‌

1,072‌

$

70,399‌

TOTAL

PREFERRED

STOCKS

$

755,837‌

BONDS

-

85.95%

Principal

Amount

(000's)

Value

(000's)

Banks

-

48.18%

Australia

&

New

Zealand

Banking

Group

Ltd/

United

Kingdom

6.75%,

06/15/2026

(f),(g),(h),(

i

)

$

12,200‌

$

14,309‌

USD

Swap

Rate

NY

5

Year

+

5.17%

6.75%,

06/15/2026

(f),(h),(

i

)

2,700‌

3,167‌

USD

Swap

Rate

NY

5

Year

+

5.17%

Banco

Bilbao

Vizcaya

Argentaria

SA

6.13%,

11/16/2027

(f),(h),(

i

)

14,200‌

15,505‌

USD

Swap

Semi-Annual

5

Year

+

3.87%

6.50%,

03/05/2025

(f),(h),(

i

)

57,800‌

63,257‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.19%

Banco

Santander

SA

4.75%,

11/12/2026

(f),(h),(

i

)

44,200‌

45,221‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.75%

7.50%,

02/08/2024

(f),(h),(

i

)

60,600‌

66,281‌

USD

Swap

Semi-Annual

5

Year

+

4.99%

Bank

of

America

Corp

6.10%,

03/17/2025

(f),(h)

5,000‌

5,617‌

3

Month

USD

LIBOR

+

3.90%

6.25%,

09/05/2024

(f),(h)

30,631‌

33,924‌

3

Month

USD

LIBOR

+

3.71%

6.30%,

03/10/2026

(f),(h)

46,995‌

54,615‌

3

Month

USD

LIBOR

+

4.55%

6.50%,

10/23/2024

(f),(h)

97,743‌

110,205‌

3

Month

USD

LIBOR

+

4.17%

8.05%,

06/15/2027

6,312‌

8,158‌

Bank

of

Montreal

1.85%,

05/01/2025

11,800‌

12,198‌

Bank

of

New

York

Mellon

Corp/The

3.55%,

12/20/2021

(f)

70,400‌

70,959‌

3

Month

USD

LIBOR

+

3.42%

3.70%,

03/20/2026

(f),(h)

38,575‌

40,417‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.35%

4.63%,

09/20/2026

(f),(h)

19,753‌

21,665‌

3

Month

USD

LIBOR

+

3.13%

4.70%,

09/20/2025

(f),(h)

12,400‌

13,628‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.36%

Bank

of

Nova

Scotia/The

1.63%,

05/01/2023

9,000‌

9,197‌

4.90%,

06/04/2025

(f),(h)

51,100‌

55,507‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.55%

Barclays

Bank

PLC

6.86%,

06/15/2032

(f),(h)

517‌

701‌

6

Month

USD

LIBOR

+

1.73%

7.63%,

11/21/2022

(

i

)

1,951‌

2,105‌

Barclays

PLC

4.38%,

03/15/2028

(f),(h),(

i

)

12,900‌

13,065‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.41%

6.13%,

12/15/2025

(f),(h),(

i

)

5,000‌

5,572‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.87%

7.75%,

09/15/2023

(f),(h),(

i

)

47,300‌

51,734‌

USD

Swap

Semi-Annual

5

Year

+

4.84%

7.88%,

03/15/2022

(f),(h),(

i

)

30,065‌

31,013‌

USD

Swap

Semi-Annual

5

Year

+

6.77%

8.00%,

06/15/2024

(f),(h),(

i

)

67,803‌

77,041‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.67%

Schedule

of

Investments

Spectrum

Preferred

and

Capital

Securities

Income

Fund

See

accompanying

notes.

175

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

BNP

Paribas

SA

4.63%,

02/25/2031

(f),(g),(h),(

i

)

$

10,000‌

$

10,401‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.34%

6.63%,

03/25/2024

(f),(g),(h),(

i

)

39,300‌

42,893‌

USD

Swap

Semi-Annual

5

Year

+

4.15%

6.63%,

03/25/2024

(f),(h),(

i

)

8,700‌

9,498‌

USD

Swap

Rate

NY

5

Year

+

4.15%

6.75%,

03/14/2022

(f),(h),(

i

)

11,525‌

11,783‌

USD

Swap

Semi-Annual

5

Year

+

4.92%

7.00%,

08/16/2028

(f),(g),(h),(

i

)

2,500‌

3,008‌

USD

Swap

Semi-Annual

5

Year

+

3.98%

7.38%,

08/19/2025

(f),(g),(h),(

i

)

100‌

117‌

USD

Swap

Semi-Annual

5

Year

+

5.15%

7.38%,

08/19/2025

(f),(h),(

i

)

13,000‌

15,181‌

USD

Swap

Semi-Annual

5

Year

+

5.15%

BPCE

SA

5.15%,

07/21/2024

(g)

13,014‌

14,468‌

Citigroup

Capital

III

7.63%,

12/01/2036

3,300‌

4,917‌

Citigroup

Inc

3.88%,

02/18/2026

(f),(h)

45,790‌

47,106‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.42%

4.00%,

12/10/2025

(f),(h)

15,110‌

15,677‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.60%

5.90%,

02/15/2023

(f),(h)

7,333‌

7,681‌

3

Month

USD

LIBOR

+

4.23%

5.95%,

01/30/2023

(f),(h)

14,400‌

15,160‌

3

Month

USD

LIBOR

+

4.07%

5.95%,

05/15/2025

(f),(h)

10,770‌

11,820‌

3

Month

USD

LIBOR

+

3.91%

6.25%,

08/15/2026

(f),(h)

86,556‌

100,621‌

3

Month

USD

LIBOR

+

4.52%

Citizens

Financial

Group

Inc

4.00%,

10/06/2026

(f),(h)

20,000‌

20,475‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.22%

5.65%,

10/06/2025

(a),(f),(h)

62,097‌

69,238‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.31%

6.00%,

07/06/2023

(f),(h)

6,900‌

7,193‌

3

Month

USD

LIBOR

+

3.00%

6.38%,

04/06/2024

(a),(f),(h)

11,200‌

11,914‌

3

Month

USD

LIBOR

+

3.16%

Comerica

Inc

5.63%,

07/01/2025

(f),(h)

18,600‌

20,553‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.29%

Corestates

Capital

III

0.69%,

02/15/2027

(g)

18,621‌

18,151‌

3

Month

USD

LIBOR

+

0.57%

Credit

Agricole

SA

7.88%,

01/23/2024

(f),(g),(h),(

i

)

29,540‌

33,196‌

USD

Swap

Semi-Annual

5

Year

+

4.90%

7.88%,

01/23/2024

(f),(h),(

i

)

18,100‌

20,340‌

USD

Swap

Semi-Annual

5

Year

+

4.90%

8.13%,

12/23/2025

(f),(g),(h),(

i

)

34,368‌

41,800‌

USD

Swap

Semi-Annual

5

Year

+

6.19%

Credit

Suisse

AG

6.50%,

08/08/2023

(g),(

i

)

23,254‌

25,579‌

6.50%,

08/08/2023

(

i

)

6,000‌

6,600‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

Credit

Suisse

Group

AG

4.50%,

09/03/2030

(f),(g),(h),(

i

)

$

8,900‌

$

8,822‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.55%

5.25%,

02/11/2027

(f),(g),(h),(

i

)

34,800‌

36,470‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.89%

6.25%,

12/18/2024

(f),(g),(h),(

i

)

11,000‌

11,949‌

USD

Swap

Semi-Annual

5

Year

+

3.46%

6.38%,

08/21/2026

(f),(g),(h),(

i

)

7,400‌

8,172‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.82%

7.13%,

07/29/2022

(f),(h),(

i

)

4,838‌

5,004‌

USD

Swap

Semi-Annual

5

Year

+

5.11%

7.50%,

07/17/2023

(f),(g),(h),(

i

)

6,500‌

7,012‌

USD

Swap

Semi-Annual

5

Year

+

4.60%

7.50%,

12/11/2023

(f),(g),(h),(

i

)

77,040‌

84,845‌

USD

Swap

Semi-Annual

5

Year

+

4.60%

7.50%,

07/17/2023

(f),(h),(

i

)

10,000‌

10,788‌

USD

Swap

Semi-Annual

5

Year

+

4.60%

Danske

Bank

A/S

6.13%,

03/28/2024

(f),(h),(

i

)

5,500‌

5,871‌

USD

Swap

Semi-Annual

7

Year

+

3.90%

7.00%,

06/26/2025

(f),(h),(

i

)

29,645‌

33,399‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

7

Year

+

4.13%

DNB

Bank

ASA

4.88%,

11/12/2024

(f),(h),(

i

)

4,775‌

5,050‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.14%

6.50%,

03/26/2022

(f),(h),(

i

)

3,000‌

3,087‌

USD

Swap

Semi-Annual

5

Year

+

5.08%

Fifth

Third

Bancorp

4.50%,

09/30/2025

(f),(h)

13,525‌

14,642‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.22%

First

Maryland

Capital

I

1.13%,

01/15/2027

2,000‌

1,936‌

3

Month

USD

LIBOR

+

1.00%

Goldman

Sachs

Group

Inc

/The

3.65%,

08/10/2026

(f),(h)

10,000‌

10,075‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.92%

3.80%,

05/10/2026

(f),(h)

13,500‌

13,777‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.97%

4.95%,

02/10/2025

(f),(h)

23,363‌

25,057‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.22%

5.50%,

08/10/2024

(a),(f),(h)

13,750‌

15,042‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.62%

HSBC

Capital

Funding

Dollar

1

LP

10.18%,

06/30/2030

(f),(g),(h)

69,567‌

115,481‌

3

Month

USD

LIBOR

+

4.98%

10.18%,

06/30/2030

(a),(f),(h)

55,708‌

92,475‌

3

Month

USD

LIBOR

+

4.98%

HSBC

Holdings

PLC

6.00%,

05/22/2027

(f),(h),(

i

)

15,900‌

17,490‌

USD

Swap

Rate

NY

5

Year

+

3.75%

6.25%,

03/23/2023

(f),(h),(

i

)

2,000‌

2,103‌

USD

Swap

Rate

NY

5

Year

+

3.45%

6.37%,

03/30/2025

(f),(h),(

i

)

14,800‌

16,336‌

USD

Swap

Rate

NY

5

Year

+

4.37%

6.38%,

09/17/2024

(f),(h),(

i

)

3,300‌

3,585‌

USD

Swap

Rate

NY

5

Year

+

3.71%

Schedule

of

Investments

Spectrum

Preferred

and

Capital

Securities

Income

Fund

See

accompanying

notes.

176

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

HSBC

Holdings

PLC

(continued)

6.50%,

03/23/2028

(f),(h),(

i

)

$

25,600‌

$

29,111‌

USD

Swap

Rate

NY

5

Year

+

3.61%

Huntington

Bancshares

Inc

/OH

4.45%,

10/15/2027

(a),(f),(h)

80,434‌

86,064‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

7

Year

+

4.05%

5.63%,

07/15/2030

(f),(h)

41,103‌

48,605‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

10

Year

+

4.95%

ING

Groep

NV

5.75%,

11/16/2026

(f),(h),(

i

)

19,075‌

21,006‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.34%

6.50%,

04/16/2025

(a),(f),(h),(

i

)

44,300‌

49,250‌

USD

Swap

Semi-Annual

5

Year

+

4.45%

6.75%,

04/16/2024

(f),(h),(

i

)

45,000‌

49,275‌

USD

Swap

Rate

NY

5

Year

+

4.20%

6.87%,

04/16/2022

(f),(h),(

i

)

69,986‌

72,173‌

USD

Swap

Rate

NY

5

Year

+

5.12%

Intesa

Sanpaolo

SpA

7.70%,

09/17/2025

(f),(g),(h),(

i

)

32,021‌

36,553‌

USD

Swap

Semi-Annual

5

Year

+

5.46%

JPMorgan

Chase

&

Co

3.65%,

06/01/2026

(f),(h)

137,550‌

139,700‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.85%

3.93%,

11/01/2021

(f)

24,318‌

24,484‌

3

Month

USD

LIBOR

+

3.80%

4.60%,

02/01/2025

(f),(h)

3,100‌

3,226‌

Secured

Overnight

Financing

Rate

+

3.13%

6.00%,

08/01/2023

(f),(h)

6,415‌

6,808‌

3

Month

USD

LIBOR

+

3.30%

6.10%,

10/01/2024

(f),(h)

2,915‌

3,181‌

3

Month

USD

LIBOR

+

3.33%

6.75%,

02/01/2024

(f),(h)

163,854‌

180,854‌

3

Month

USD

LIBOR

+

3.78%

KeyCorp

5.00%,

09/15/2026

(f),(h)

16,131‌

18,106‌

3

Month

USD

LIBOR

+

3.61%

KeyCorp

Capital

I

0.88%,

07/01/2028

7,825‌

7,551‌

3

Month

USD

LIBOR

+

0.74%

KeyCorp

Capital

III

7.75%,

07/15/2029

3,500‌

4,474‌

Lloyds

Bank

PLC

12.00%,

12/16/2024

(a),(f),(g),(h)

20,250‌

21,389‌

3

Month

USD

LIBOR

+

11.76%

12.00%,

12/16/2024

(f),(h)

1,035‌

1,093‌

3

Month

USD

LIBOR

+

11.76%

Lloyds

Banking

Group

PLC

3.87%,

07/09/2025

(h)

5,000‌

5,415‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

1

Year

+

3.50%

6.41%,

10/01/2035

(f),(g),(h)

7,674‌

10,753‌

3

Month

USD

LIBOR

+

1.50%

6.66%,

05/21/2037

(f),(h)

3,000‌

4,309‌

3

Month

USD

LIBOR

+

1.27%

6.66%,

05/21/2037

(a),(f),(g),(h)

48,385‌

69,493‌

3

Month

USD

LIBOR

+

1.27%

7.50%,

06/27/2024

(f),(h),(

i

)

47,496‌

53,136‌

USD

Swap

Semi-Annual

5

Year

+

4.76%

7.50%,

09/27/2025

(f),(h),(

i

)

22,500‌

26,031‌

USD

Swap

Semi-Annual

5

Year

+

4.50%

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

M&T

Bank

Corp

3.50%,

09/01/2026

(f),(h)

$

7,800‌

$

7,956‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.68%

5.00%,

08/01/2024

(a),(f),(h)

4,702‌

4,954‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.17%

5.13%,

11/01/2026

(f),(h)

14,020‌

15,549‌

3

Month

USD

LIBOR

+

3.52%

6.45%,

02/15/2024

(f),(h)

6,515‌

7,183‌

3

Month

USD

LIBOR

+

3.61%

Macquarie

Bank

Ltd/London

6.13%,

03/08/2027

(f),(g),(h),(

i

)

21,000‌

23,208‌

USD

Swap

Semi-Annual

5

Year

+

3.70%

6.13%,

03/08/2027

(a),(f),(h),(

i

)

5,000‌

5,526‌

USD

Swap

Semi-Annual

5

Year

+

3.70%

Natwest

Group

PLC

2.47%,

09/30/2027

(f)

1,900‌

1,881‌

3

Month

USD

LIBOR

+

2.32%

6.00%,

12/29/2025

(f),(h),(

i

)

35,000‌

39,188‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.63%

8.00%,

08/10/2025

(f),(h),(

i

)

22,825‌

26,905‌

USD

Swap

Semi-Annual

5

Year

+

5.72%

Nordea

Bank

Abp

6.13%,

09/23/2024

(f),(g),(h),(

i

)

42,131‌

46,370‌

USD

Swap

Semi-Annual

5

Year

+

3.39%

6.13%,

09/23/2024

(a),(f),(h),(

i

)

18,735‌

20,620‌

USD

Swap

Semi-Annual

5

Year

+

3.39%

6.63%,

03/26/2026

(f),(g),(h),(

i

)

55,962‌

64,531‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.11%

Northern

Trust

Corp

4.60%,

10/01/2026

(a),(f),(h)

1,300‌

1,429‌

3

Month

USD

LIBOR

+

3.20%

NTC

Capital

I

0.65%,

01/15/2027

5,400‌

5,271‌

3

Month

USD

LIBOR

+

0.52%

NTC

Capital

II

0.72%,

04/15/2027

6,500‌

6,336‌

3

Month

USD

LIBOR

+

0.59%

PNC

Financial

Services

Group

Inc

/The

3.80%,

11/01/2021

(f)

5,289‌

5,315‌

3

Month

USD

LIBOR

+

3.68%

Regions

Financial

Corp

5.75%,

06/15/2025

(f),(h)

16,750‌

18,807‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.43%

Skandinaviska

Enskilda

Banken

AB

5.13%,

05/13/2025

(f),(h),(

i

)

32,800‌

35,096‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.46%

5.63%,

05/13/2022

(f),(h),(

i

)

11,800‌

12,125‌

USD

Swap

Semi-Annual

5

Year

+

3.49%

Societe

Generale

SA

4.75%,

05/26/2026

(f),(g),(h),(

i

)

12,000‌

12,443‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.93%

7.37%,

09/13/2021

(f),(h),(

i

)

2,140‌

2,144‌

USD

Swap

Semi-Annual

5

Year

+

6.24%

7.38%,

10/04/2023

(f),(g),(h),(

i

)

16,800‌

18,291‌

USD

Swap

Semi-Annual

5

Year

+

4.30%

7.38%,

09/13/2021

(f),(g),(h),(

i

)

25,026‌

25,074‌

USD

Swap

Semi-Annual

5

Year

+

6.24%

7.88%,

12/18/2023

(f),(g),(h),(

i

)

4,900‌

5,433‌

USD

Swap

Semi-Annual

5

Year

+

4.98%

Schedule

of

Investments

Spectrum

Preferred

and

Capital

Securities

Income

Fund

See

accompanying

notes.

177

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

Societe

Generale

SA

(continued)

7.88%,

12/18/2023

(f),(h),(

i

)

$

14,000‌

$

15,523‌

USD

Swap

Semi-Annual

5

Year

+

4.98%

8.00%,

09/29/2025

(f),(g),(h),(

i

)

26,660‌

31,495‌

USD

Swap

Rate

NY

5

Year

+

5.87%

8.00%,

09/29/2025

(a),(f),(h),(

i

)

19,000‌

22,446‌

USD

Swap

Rate

NY

5

Year

+

5.87%

Standard

Chartered

PLC

4.30%,

08/19/2028

(f),(g),(h),(

i

)

12,000‌

11,954‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.14%

4.87%,

03/15/2033

(h)

1,026‌

1,143‌

USD

Swap

Rate

NY

5

Year

+

1.97%

6.00%,

07/26/2025

(f),(h),(

i

)

1,000‌

1,098‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.66%

6.00%,

07/26/2025

(f),(g),(h),(

i

)

15,000‌

16,471‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.66%

7.01%,

07/30/2037

(a),(f),(g),(h)

16,500‌

23,038‌

3

Month

USD

LIBOR

+

1.46%

7.01%,

07/30/2037

(f),(h)

2,800‌

3,910‌

3

Month

USD

LIBOR

+

1.46%

7.50%,

04/02/2022

(f),(g),(h),(

i

)

17,700‌

18,342‌

USD

Swap

Semi-Annual

5

Year

+

6.30%

7.50%,

04/02/2022

(f),(h),(

i

)

23,500‌

24,352‌

USD

Swap

Semi-Annual

5

Year

+

6.30%

7.75%,

04/02/2023

(f),(g),(h),(

i

)

25,000‌

27,125‌

USD

Swap

Semi-Annual

5

Year

+

5.72%

State

Street

Corp

3.72%,

12/15/2021

(f)

1,334‌

1,342‌

3

Month

USD

LIBOR

+

3.60%

SVB

Financial

Group

4.00%,

05/15/2026

(f),(h)

18,700‌

19,401‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.20%

4.10%,

02/15/2031

(f),(h)

12,350‌

12,782‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

10

Year

+

3.06%

Svenska

Handelsbanken

AB

4.38%,

03/01/2027

(f),(h),(

i

)

16,400‌

17,437‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.94%

6.25%,

03/01/2024

(f),(h),(

i

)

13,800‌

15,163‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.69%

Swedbank

AB

6.00%,

03/17/2022

(f),(h),(

i

)

5,200‌

5,320‌

USD

Swap

Semi-Annual

5

Year

+

4.11%

Truist

Bank

0.77%,

03/15/2028

9,022‌

8,750‌

3

Month

USD

LIBOR

+

0.65%

0.79%,

05/15/2027

10,900‌

10,493‌

3

Month

USD

LIBOR

+

0.67%

1.12%,

04/01/2027

7,000‌

6,843‌

3

Month

USD

LIBOR

+

0.98%

Truist

Financial

Corp

4.80%,

09/01/2024

(f),(h)

99,300‌

105,387‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.00%

4.95%,

09/01/2025

(f),(h)

43,690‌

48,134‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.61%

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

UBS

Group

AG

3.88%,

06/02/2026

(f),(g),(h),(

i

)

$

20,000‌

$

20,238‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.10%

4.38%,

02/10/2031

(f),(g),(h),(

i

)

17,000‌

17,404‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.31%

6.88%,

08/07/2025

(f),(h),(

i

)

11,933‌

13,648‌

USD

Swap

Semi-Annual

(VS

6

Month)

5

Year

+

4.59%

7.00%,

01/31/2024

(f),(g),(h),(

i

)

20,500‌

22,474‌

USD

Swap

Semi-Annual

5

Year

+

4.34%

7.00%,

01/31/2024

(f),(h),(

i

)

13,900‌

15,238‌

USD

Swap

Semi-Annual

(VS

6

Month)

5

Year

+

4.34%

7.00%,

02/19/2025

(f),(h),(

i

)

20,700‌

23,753‌

USD

Swap

Semi-Annual

(VS

6

Month)

5

Year

+

4.87%

UniCredit

SpA

8.00%,

06/03/2024

(f),(h),(

i

)

21,000‌

23,205‌

USD

Swap

Semi-Annual

5

Year

+

5.18%

USB

Realty

Corp

1.27%,

01/15/2022

(f),(g)

1,500‌

1,170‌

3

Month

USD

LIBOR

+

1.15%

Wells

Fargo

&

Co

0.63%,

01/15/2027

6,345‌

6,210‌

3

Month

USD

LIBOR

+

0.50%

3.90%,

03/15/2026

(f),(h)

76,343‌

79,368‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.45%

5.88%,

06/15/2025

(f),(h)

50,250‌

56,587‌

3

Month

USD

LIBOR

+

3.99%

7.95%,

11/15/2029

3,700‌

5,150‌

$

4,074,968‌

Diversified

Financial

Services

-

5.17%

Ally

Financial

Inc

4.70%,

05/15/2026

(f),(h)

31,900‌

33,575‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.87%

4.70%,

05/15/2028

(f),(h)

8,500‌

8,851‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

7

Year

+

3.48%

American

Express

Co

3.55%,

09/15/2026

(f),(h)

50,000‌

50,875‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.85%

Capital

One

Financial

Corp

3.93%,

09/01/2021

(f)

19,021‌

3

Month

USD

LIBOR

+

3.80%

3.95%,

09/01/2026

(f),(h)

22,600‌

23,419‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.16%

Charles

Schwab

Corp/The

4.00%,

12/01/2030

(f),(h)

1,276‌

1,327‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

10

Year

+

3.08%

4.00%,

06/01/2026

(f),(h)

90,600‌

95,356‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.17%

5.38%,

06/01/2025

(f),(h)

106,727‌

118,606‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.97%

7.00%,

02/01/2022

(f),(h)

28,358‌

28,961‌

3

Month

USD

LIBOR

+

4.82%

Schedule

of

Investments

Spectrum

Preferred

and

Capital

Securities

Income

Fund

See

accompanying

notes.

178

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Diversified

Financial

Services

(continued)

Depository

Trust

&

Clearing

Corp/The

3.38%,

06/20/2026

(f),(g),(h)

$

19,750‌

$

20,416‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.61%

Discover

Financial

Services

5.50%,

10/30/2027

(f),(h)

5,947‌

6,408‌

3

Month

USD

LIBOR

+

3.08%

6.13%,

06/23/2025

(f),(h)

27,160‌

30,521‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.78%

$

437,336‌

Electric

-

4.65%

CMS

Energy

Corp

3.75%,

12/01/2050

(h)

2,000‌

2,025‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.90%

Dominion

Energy

Inc

4.65%,

12/15/2024

(f),(h)

119,252‌

127,600‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.99%

Duke

Energy

Corp

4.88%,

09/16/2024

(f),(h)

94,969‌

101,332‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.39%

Emera

Inc

6.75%,

06/15/2076

(h)

65,695‌

77,953‌

3

Month

USD

LIBOR

+

5.44%

Enel

SpA

8.75%,

09/24/2073

(g),(h)

2,991‌

3,417‌

USD

Swap

Semi-Annual

5

Year

+

5.88%

NextEra

Energy

Capital

Holdings

Inc

2.21%,

10/01/2066

20,264‌

19,149‌

3

Month

USD

LIBOR

+

2.07%

2.24%,

06/15/2067

7,700‌

7,253‌

3

Month

USD

LIBOR

+

2.13%

4.80%,

12/01/2077

(h)

2,300‌

2,572‌

3

Month

USD

LIBOR

+

2.41%

5.65%,

05/01/2079

(h)

800‌

938‌

3

Month

USD

LIBOR

+

3.16%

Southern

Co/The

3.75%,

09/15/2051

(h)

21,700‌

22,190‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.92%

4.00%,

01/15/2051

(h)

14,700‌

15,581‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.73%

5.50%,

03/15/2057

(h)

13,280‌

13,497‌

3

Month

USD

LIBOR

+

3.63%

$

393,507‌

Food

-

0.10%

Dairy

Farmers

of

America

Inc

7.13%,

12/01/2026

(f),(g)

8,700‌

8,787‌

Gas

-

0.87%

NiSource

Inc

5.65%,

06/15/2023

(f),(h)

70,300‌

73,463‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.84%

Hand

&

Machine

Tools

-

0.17%

Stanley

Black

&

Decker

Inc

4.00%,

03/15/2060

(h)

12,900‌

13,865‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.66%

Insurance

-

18.76%

ACE

Capital

Trust

II

9.70%,

04/01/2030

15,505‌

23,127‌

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Insurance

(continued)

Allianz

SE

3.50%,

11/17/2025

(f),(g),(h)

$

27,600‌

$

28,607‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.97%

Allstate

Corp/The

5.75%,

08/15/2053

(h)

11,754‌

12,757‌

3

Month

USD

LIBOR

+

2.94%

6.50%,

05/15/2067

(h)

11,800‌

15,841‌

3

Month

USD

LIBOR

+

2.12%

American

International

Group

Inc

5.75%,

04/01/2048

(h)

46,701‌

53,905‌

3

Month

USD

LIBOR

+

2.87%

8.18%,

05/15/2068

(h)

29,013‌

43,229‌

3

Month

USD

LIBOR

+

4.20%

Aon

Corp

8.21%,

01/01/2027

4,750‌

6,188‌

Argentum

Netherlands

BV

for

Swiss

Re

Ltd

5.63%,

08/15/2052

(h)

66,620‌

76,813‌

3

Month

USD

LIBOR

+

3.78%

5.75%,

08/15/2050

(h)

49,400‌

56,161‌

3

Month

USD

LIBOR

+

3.59%

Argentum

Netherlands

BV

for

Zurich

Insurance

Co

Ltd

5.13%,

06/01/2048

(h)

23,390‌

27,072‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.27%

AXA

SA

5.13%,

01/17/2047

(h)

500‌

574‌

3

Month

USD

LIBOR

+

3.88%

6.38%,

12/14/2036

(f),(g),(h)

27,793‌

39,049‌

3

Month

USD

LIBOR

+

2.26%

8.60%,

12/15/2030

21,874‌

33,172‌

Cloverie

PLC

for

Swiss

Reinsurance

Co

Ltd

4.50%,

09/11/2044

(h)

20,000‌

21,706‌

USD

Swap

Semi-Annual

10

Year

+

2.91%

Cloverie

PLC

for

Zurich

Insurance

Co

Ltd

5.63%,

06/24/2046

(h)

5,000‌

5,815‌

3

Month

USD

LIBOR

+

4.92%

Equitable

Holdings

Inc

4.95%,

09/15/2025

(a),(f),(h)

1,500‌

1,631‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.74%

Everest

Reinsurance

Holdings

Inc

2.51%,

05/01/2067

(a)

22,020‌

20,815‌

3

Month

USD

LIBOR

+

2.39%

Hartford

Financial

Services

Group

Inc

/The

2.25%,

02/12/2067

(g)

2,735‌

2,626‌

3

Month

USD

LIBOR

+

2.13%

Legal

&

General

Group

PLC

5.25%,

03/21/2047

(h)

25,404‌

28,856‌

USD

Swap

Semi-Annual

5

Year

+

3.69%

Liberty

Mutual

Group

Inc

4.13%,

12/15/2051

(g),(h)

17,000‌

17,427‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.32%

7.80%,

03/07/2087

(g)

76,240‌

102,591‌

3

Month

USD

LIBOR

+

3.58%

Liberty

Mutual

Insurance

Co

7.70%,

10/15/2097

(g)

20,025‌

31,891‌

Lincoln

National

Corp

2.17%,

04/20/2067

43,198‌

37,798‌

3

Month

USD

LIBOR

+

2.04%

M&G

PLC

6.50%,

10/20/2048

(h)

11,788‌

14,470‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.41%

Schedule

of

Investments

Spectrum

Preferred

and

Capital

Securities

Income

Fund

See

accompanying

notes.

179

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Insurance

(continued)

Meiji

Yasuda

Life

Insurance

Co

5.20%,

10/20/2045

(g),(h)

$

9,545‌

$

10,798‌

USD

Swap

Semi-Annual

5

Year

+

4.23%

MetLife

Capital

Trust

IV

7.88%,

12/15/2067

(g)

24,540‌

34,540‌

MetLife

Inc

3.85%,

09/15/2025

(f),(h)

51,000‌

53,550‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.58%

6.40%,

12/15/2066

20,770‌

26,696‌

3

Month

USD

LIBOR

+

2.21%

9.25%,

04/08/2068

(g)

63,475‌

96,995‌

3

Month

USD

LIBOR

+

5.54%

10.75%,

08/01/2069

50,439‌

89,274‌

3

Month

USD

LIBOR

+

7.55%

Mitsui

Sumitomo

Insurance

Co

Ltd

4.95%,

03/06/2029

(f),(h)

520‌

595‌

USD

Swap

Semi-Annual

5

Year

+

3.26%

4.95%,

03/06/2029

(f),(g),(h)

1,800‌

2,061‌

USD

Swap

Semi-Annual

5

Year

+

3.26%

7.00%,

03/15/2072

(a),(g),(h)

10,700‌

11,048‌

3

Month

USD

LIBOR

+

5.90%

MMI

Capital

Trust

I

7.63%,

12/15/2027

1,073‌

1,388‌

Nationwide

Financial

Services

Inc

6.75%,

05/15/2087

79,015‌

98,374‌

Nippon

Life

Insurance

Co

2.75%,

01/21/2051

(g),(h)

3,200‌

3,189‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.65%

2.75%,

01/21/2051

(h)

9,000‌

8,969‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.65%

4.70%,

01/20/2046

(g),(h)

5,000‌

5,575‌

USD

Swap

Rate

NY

5

Year

+

3.75%

5.10%,

10/16/2044

(g),(h)

26,700‌

29,470‌

USD

Swap

Semi-Annual

5

Year

+

3.65%

Prudential

Financial

Inc

3.70%,

10/01/2050

(h)

11,400‌

12,010‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.04%

5.20%,

03/15/2044

(h)

3,945‌

4,238‌

3

Month

USD

LIBOR

+

3.04%

5.63%,

06/15/2043

(h)

79,150‌

84,526‌

3

Month

USD

LIBOR

+

3.92%

5.88%,

09/15/2042

(h)

45,255‌

47,517‌

3

Month

USD

LIBOR

+

4.18%

Sompo

Japan

Insurance

Inc

5.33%,

03/28/2073

(g),(h)

60,300‌

64,069‌

3

Month

USD

LIBOR

+

4.27%

Sumitomo

Life

Insurance

Co

3.38%,

04/15/2081

(g),(h)

18,300‌

19,078‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.75%

4.00%,

09/14/2077

(a),(g),(h)

4,700‌

5,135‌

3

Month

USD

LIBOR

+

2.99%

6.50%,

09/20/2073

(g),(h)

15,500‌

17,135‌

3

Month

USD

LIBOR

+

4.44%

Voya

Financial

Inc

4.70%,

01/23/2048

(h)

8,055‌

8,524‌

3

Month

USD

LIBOR

+

2.08%

5.65%,

05/15/2053

(h)

77,926‌

82,432‌

3

Month

USD

LIBOR

+

3.58%

6.13%,

09/15/2023

(f),(h)

11,706‌

12,581‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.36%

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Insurance

(continued)

Zurich

Finance

Ireland

Designated

Activity

Co

3.00%,

04/19/2051

(h)

$

54,000‌

$

54,514‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.78%

$

1,586,402‌

Oil

&

Gas

-

0.73%

BP

Capital

Markets

PLC

4.38%,

06/22/2025

(f),(h)

24,400‌

25,986‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.04%

4.88%,

03/22/2030

(f),(h)

32,562‌

35,894‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.40%

$

61,880‌

Pipelines

-

4.29%

Enbridge

Inc

5.75%,

07/15/2080

(h)

65,201‌

73,612‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.31%

6.00%,

01/15/2077

(a),(h)

44,100‌

48,848‌

3

Month

USD

LIBOR

+

3.89%

6.25%,

03/01/2078

(h)

34,882‌

38,353‌

3

Month

USD

LIBOR

+

3.64%

Enterprise

Products

Operating

LLC

5.25%,

08/16/2077

(h)

58,300‌

60,897‌

3

Month

USD

LIBOR

+

3.03%

5.38%,

02/15/2078

(h)

29,415‌

30,372‌

3

Month

USD

LIBOR

+

2.57%

Transcanada

Trust

5.30%,

03/15/2077

(h)

6,000‌

6,431‌

3

Month

USD

LIBOR

+

3.21%

5.50%,

09/15/2079

(h)

51,000‌

56,610‌

Secured

Overnight

Financing

Rate

+

4.42%

5.88%,

08/15/2076

(h)

42,281‌

47,407‌

3

Month

USD

LIBOR

+

4.64%

$

362,530‌

REITs

-

0.97%

Scentre

Group

Trust

2

4.75%,

09/24/2080

(g),(h)

10,500‌

11,175‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.38%

4.75%,

09/24/2080

(a),(h)

4,300‌

4,577‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.38%

5.13%,

09/24/2080

(g),(h)

61,600‌

66,368‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.69%

$

82,120‌

Sovereign

-

0.37%

CoBank

ACB

6.25%,

10/01/2026

(f),(h)

16,400‌

18,573‌

3

Month

USD

LIBOR

+

4.66%

Farm

Credit

Bank

of

Texas

5.70%,

09/15/2025

(f),(g),(h)

11,800‌

12,803‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.42%

$

31,376‌

Telecommunications

-

1.20%

Vodafone

Group

PLC

3.25%,

06/04/2081

(h)

24,000‌

24,390‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.45%

7.00%,

04/04/2079

(h)

62,686‌

77,420‌

USD

Swap

Semi-Annual

5

Year

+

4.87%

$

101,810‌

Schedule

of

Investments

Spectrum

Preferred

and

Capital

Securities

Income

Fund

See

accompanying

notes.

180

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Transportation

-

0.49%

BNSF

Funding

Trust

I

6.61%,

12/15/2055

(h)

$

35,709‌

$

40,931‌

3

Month

USD

LIBOR

+

2.35%

TOTAL

BONDS

$

7,268,975‌

TOTAL

PURCHASED

OPTIONS

-

0.00%

$

20‌

Total

Investments

$

8,388,729‌

Other

Assets

and

Liabilities

- 0.81%

68,730‌

TOTAL

NET

ASSETS

-

100.00%

$

8,457,459‌

(a)

Security

or

a

portion

of

the

security

was

on

loan. At

the

end

of

the

period,

the

value

of

these

securities

totaled

$45,762

or

0.54%

of

net

assets.

(b)

Current

yield

shown

is

as

of

period

end.

(c)

Security

or

a

portion

of

the

security

was

received

as

collateral

for

securities

lending.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$47,110

or

0.56%

of

net

assets.

(d)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(e)

Non-income

producing

security

(f)

Perpetual

security.

Perpetual

securities

pay

an

indefinite

stream

of

interest,

but

they

may

be

called

by

the

issuer

at

an

earlier

date.

Date

shown,

if

any,

reflects

the

date

or

final

legal

maturity

date.

Rate

shown

is

as

of

period

end.

(g)

Security

exempt

from

registration

under

Rule

144A

of

the

Securities

Act

of

1933.

These

securities

may

be

resold

in

transactions

exempt

from

registration,

normally

to

qualified

institutional

buyers.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$1,698,700

or

20.09%

of

net

assets.

(h)

Rate

shown

is

as

of

period

end.

The

rate

may

be

a

variable

or

floating

rate

or

a

fixed

rate

which

may

convert

to

a

variable

or

floating

rate

in

the

future.

(

i

)

Security

is

a

contingent

convertible

security,

("

CoCo

").

CoCo's

are

hybrid

debt

securities

that

may

convert

to

equity

or

have

their

principal

written

down

upon

occurrence

of

certain

"triggers".

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$1,884,824

or

22.29%

of

net

assets.

Portfolio

Summary (unaudited)

Sector

Percent

Financial

79.97‌%

Utilities

6.63‌%

Energy

5.02‌%

Money

Market

Funds

2.90‌%

Communications

2.03‌%

Government

1.17‌%

Industrial

0.66‌%

Investment

Companies

0.41‌%

Consumer,

Non-cyclical

0.40‌%

Purchased

Options

0.00‌%

Other

Assets

and

Liabilities

0.81‌%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

Purchases

Sales

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

$

245,019‌

$

2,659,976‌

$

2,674,261‌

$

230,734‌

$

245,019‌

$

2,659,976‌

$

2,674,261‌

$

230,734‌

Income

(a)

Realized

Gain/Loss

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

Loss

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

(a)

Amount

excludes

earnings

from

securities

lending

collateral.

Options

Purchased

Options

Outstanding

Counterparty

Shares

Notional

Amount

Exercise

Price

Expiration

Date

Upfront

Payments

Fair

Value

Unrealized

Appreciation/

(Depreciation)

Call

-

US

Long

Bond

Future;

December

2021

N/A

1,300‌

$

1,300‌

$

177.00‌

09/27/2021

$

44‌

$

20‌

$

(24‌)

Total

$

44‌

$

20‌

$

(24‌)

Amounts

in

thousands

except

contracts/shares.

Futures

Description

and

Expiration

Date

Type

Notional

Amount

Value

and

Unrealized

Appreciation/(Depreciation)

US

Long

Bond;

December

2021

Short

1,300‌

$

211,859‌

$

(462‌)

Total

$

(462‌)

Amounts

in

thousands

except

Glossary

to

the

Schedule

of

Investments

See

accompanying

notes.

181

Currency

Abbreviations

ARS

Argentine

Peso

AUD

Australian

Dollar

BRL

Brazilian

Real

CAD

Canadian

Dollar

CHF

Swiss

Franc

CLP

Chilean

Peso

CNY

Chinese

Renminbi

COP

Colombian

Peso

CZK

Czech

Koruna

EUR

Euro

GBP

British

Pound

Sterling

HUF

Hungarian

Forint

IDR

Indonesian

Rupiah

INR

Indian

Rupee

JPY

Japanese

Yen

KRW

South

Korean

Won

MXN

Mexican

Peso

NZD

New

Zealand

Dollar

PLN

Polish

Zloty

RUB

Russian

Ruble

UAH

Ukrainian

Hryvnia

USD/$

United

States

Dollar

ZAR

South

African

Rand

Financial

Highlights

Principal

Funds,

Inc.

See

accompanying

notes.

182

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

August

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

BLUE

CHIP

FUND

Class

A

shares

2021

$

33.85‌

(

$

0.18‌)

$

10.06‌

$

9.88‌

$

–‌

(

$

1.14‌)

(

$

1.14‌)

$

42.59‌

2020

25.56‌

(

0.07‌)

9.54‌

9.47‌

(

0.02‌)

(

1.16‌)

(

1.18‌)

33.85‌

2019

24.49‌

(

0.01‌)

2.67‌

2.66‌

–‌

(

1.59‌)

(

1.59‌)

25.56‌

2018

19.91‌

(

0.07‌)

5.24‌

5.17‌

–‌

(

0.59‌)

(

0.59‌)

24.49‌

2017

16.85‌

0.07‌

3.08‌

3.15‌

–‌

(

0.09‌)

(

0.09‌)

19.91‌

Class

C

shares

2021

32.01‌

(

0.42‌)

9.46‌

9.04‌

–‌

(

1.14‌)

(

1.14‌)

39.91‌

2020

24.39‌

(

0.26‌)

9.03‌

8.77‌

–‌

(

1.15‌)

(

1.15‌)

32.01‌

2019

23.62‌

(

0.18‌)

2.54‌

2.36‌

–‌

(

1.59‌)

(

1.59‌)

24.39‌

2018

19.37‌

(

0.23‌)

5.07‌

4.84‌

–‌

(

0.59‌)

(

0.59‌)

23.62‌

2017

16.52‌

(

0.07‌)

3.01‌

2.94‌

–‌

(

0.09‌)

(

0.09‌)

19.37‌

Class

J

shares

2021

34.29‌

(

0.13‌)

10.21‌

10.08‌

–‌

(

1.14‌)

(

1.14‌)

43.23‌

2020

25.86‌

(

0.04‌)

9.64‌

9.60‌

(

0.01‌)

(

1.16‌)

(

1.17‌)

34.29‌

2019

24.74‌

(

0.02‌)

2.73‌

2.71‌

–‌

(

1.59‌)

(

1.59‌)

25.86‌

2018(f)

20.16‌

(

0.05‌)

5.22‌

5.17‌

–‌

(

0.59‌)

(

0.59‌)

24.74‌

Institutional

shares

2021

34.47‌

(

0.08‌)

10.26‌

10.18‌

–‌

(

1.14‌)

(

1.14‌)

43.51‌

2020

26.00‌

(

0.01‌)

9.72‌

9.71‌

(

0.05‌)

(

1.19‌)

(

1.24‌)

34.47‌

2019

24.81‌

0.09‌

2.69‌

2.78‌

–‌

(

1.59‌)

(

1.59‌)

26.00‌

2018

20.10‌

0.01‌

5.29‌

5.30‌

–‌

(

0.59‌)

(

0.59‌)

24.81‌

2017

17.00‌

0.10‌

3.17‌

3.27‌

(

0.08‌)

(

0.09‌)

(

0.17‌)

20.10‌

R-3

shares

2021

33.85‌

(

0.25‌)

10.05‌

9.80‌

–‌

(

1.14‌)

(

1.14‌)

42.51‌

2020

25.59‌

(

0.12‌)

9.53‌

9.41‌

–‌

(

1.15‌)

(

1.15‌)

33.85‌

2019

24.55‌

(

0.07‌)

2.70‌

2.63‌

–‌

(

1.59‌)

(

1.59‌)

25.59‌

2018

20.00‌

(

0.10‌)

5.24‌

5.14‌

–‌

(

0.59‌)

(

0.59‌)

24.55‌

2017

16.96‌

0.21‌

2.95‌

3.16‌

(

0.03‌)

(

0.09‌)

(

0.12‌)

20.00‌

R-4

shares

2021

34.08‌

(

0.18‌)

10.13‌

9.95‌

–‌

(

1.14‌)

(

1.14‌)

42.89‌

2020

25.76‌

(

0.06‌)

9.58‌

9.52‌

(

0.03‌)

(

1.17‌)

(

1.20‌)

34.08‌

2019

24.66‌

(

0.01‌)

2.70‌

2.69‌

–‌

(

1.59‌)

(

1.59‌)

25.76‌

2018

20.05‌

(

0.06‌)

5.26‌

5.20‌

–‌

(

0.59‌)

(

0.59‌)

24.66‌

2017

16.98‌

0.09‌

3.11‌

3.20‌

(

0.04‌)

(

0.09‌)

(

0.13‌)

20.05‌

R-5

shares

2021

34.29‌

(

0.14‌)

10.19‌

10.05‌

–‌

(

1.14‌)

(

1.14‌)

43.20‌

2020

25.86‌

(

0.04‌)

9.66‌

9.62‌

(

0.03‌)

(

1.16‌)

(

1.19‌)

34.29‌

2019

24.72‌

0.02‌

2.71‌

2.73‌

–‌

(

1.59‌)

(

1.59‌)

25.86‌

2018

20.07‌

(

0.03‌)

5.27‌

5.24‌

–‌

(

0.59‌)

(

0.59‌)

24.72‌

2017

16.99‌

0.18‌

3.04‌

3.22‌

(

0.05‌)

(

0.09‌)

(

0.14‌)

20.07‌

R-6

shares

2021

34.54‌

(

0.05‌)

10.29‌

10.24‌

–‌

(

1.14‌)

(

1.14‌)

43.64‌

2020

26.04‌

0.04‌

9.72‌

9.76‌

(

0.07‌)

(

1.19‌)

(

1.26‌)

34.54‌

2019

24.82‌

0.07‌

2.74‌

2.81‌

–‌

(

1.59‌)

(

1.59‌)

26.04‌

2018

20.10‌

0.03‌

5.28‌

5.31‌

–‌

(

0.59‌)

(

0.59‌)

24.82‌

2017(j)

17.03‌

0.23‌

2.84‌

3.07‌

–‌

20.10‌

Financial

Highlights

(Continued)

Principal

Funds,

Inc.

See

accompanying

notes.

183

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

30.18‌

%

(b)

$

1,123,747‌

0.91‌

%

(c)

–‌

%

(0.49‌)

%

25.6‌

%

38.51‌

(b)

646,386‌

0.93‌

(c)

–‌

(0.25‌)

30.0‌

12.75‌

(b)

302,904‌

1.00‌

(c)

–‌

(0.06‌)

15.9‌

26.45‌

(b)

164,310‌

1.09‌

(c)

–‌

(0.30‌)

34.0‌

18.81‌

(b)

71,738‌

1.15‌

(c)

–‌

0.41‌

27.1‌

29.26‌

(b)

411,694‌

1.65‌

(c)

–‌

(1.23‌)

25.6‌

37.43‌

(b)

322,210‌

1.66‌

(c)

–‌

(0.99‌)

30.0‌

11.91‌

(b)

156,734‌

1.73‌

(c)

–‌

(0.80‌)

15.9‌

25.47‌

(b)

91,660‌

1.84‌

(c)

–‌

(1.05‌)

34.0‌

17.91‌

(b)

40,344‌

1.94‌

(c)

–‌

(0.41‌)

27.1‌

30.38‌

(b)

221,942‌

0.77‌

(d)

0.83‌

(e)

(0.35‌)

25.6‌

38.58‌

(b)

153,325‌

0.82‌

(d)

0.91‌

(e)

(0.14‌)

30.0‌

12.82‌

(b)

80,050‌

0.96‌

(d)

1.08‌

(e)

(0.06‌)

15.9‌

26.12‌

(b),(g)

59,232‌

1.01‌

(d),(h)

1.04‌

(e),(h)

(0.21‌)

(h)

34.0‌

30.51‌

3,141,819‌

0.65‌

(c)

–‌

(0.23‌)

25.6‌

38.88‌

2,638,389‌

0.66‌

(c)

–‌

(0.02‌)

30.0‌

13.09‌

725,718‌

0.67‌

(c)

–‌

0.39‌

15.9‌

26.88‌

175,887‌

0.75‌

(c)

–‌

0.03‌

34.0‌

19.42‌

63,268‌

0.69‌

(c)

–‌

0.57‌

27.1‌

29.94‌

11,204‌

1.12‌

(c)

–‌

(0.70‌)

25.6‌

38.20‌

8,764‌

1.12‌

(c)

–‌

(0.43‌)

30.0‌

12.58‌

5,913‌

1.15‌

(c)

–‌

(0.32‌)

15.9‌

26.18‌

8,402‌

1.24‌

–‌

(0.45‌)

34.0‌

18.77‌

337‌

1.25‌

–‌

1.08‌

27.1‌

30.18‌

5,608‌

0.93‌

(c)

–‌

(0.51‌)

25.6‌

38.45‌

5,230‌

0.93‌

(c)

–‌

(0.23‌)

30.0‌

12.78‌

3,989‌

0.96‌

(c)

–‌

(0.05‌)

15.9‌

26.42‌

1,300‌

1.05‌

–‌

(0.27‌)

34.0‌

19.02‌

27‌

1.06‌

–‌

0.51‌

27.1‌

30.29‌

12,383‌

0.81‌

(c)

–‌

(0.39‌)

25.6‌

38.66‌

12,060‌

0.81‌

(c)

–‌

(0.15‌)

30.0‌

12.92‌

6,380‌

0.84‌

(c)

–‌

0.07‌

15.9‌

26.59‌

5,279‌

0.93‌

–‌

(0.15‌)

34.0‌

19.11‌

83‌

0.94‌

–‌

0.95‌

27.1‌

30.66‌

(i)

6,134,030‌

0.55‌

(c)

–‌

(0.14‌)

25.6‌

39.01‌

4,051,190‌

0.55‌

(c)

–‌

0.15‌

30.0‌

13.22‌

3,052,936‌

0.58‌

(c)

–‌

0.29‌

15.9‌

26.93‌

2,709,836‌

0.67‌

(c)

–‌

0.12‌

34.0‌

18.03‌

(g)

1,582,450‌

0.68‌

(c),(h)

–‌

1.74‌

(h)

27.1‌

(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)

Reflects

Manager's

contractual

expense

limit.

(d)

Reflects

Manager's

contractual

expense

limit

and/or

Distributor's

voluntary

distribution

fee

limit.

(e)

Excludes

expense

reimbursement

from

Manager

and/or

Distributor.

(f)

Period

from

September

11,

2017,

date

operations

commenced,

through

2018.

(g)

Total

return

amounts

have

not

been

annualized.

(h)

Computed

on

an

annualized

basis.

(i)

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.

(j)

Period

from

2017,

date

operations

commenced,

through

Financial

Highlights

Principal

Funds,

Inc.

See

accompanying

notes.

184

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

August

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

BOND

MARKET

INDEX

FUND

Class

J

shares

2021

$

11

.79‌

$

0

.15‌

(

$

0

.19‌

)

(

$

0

.04‌

)

(

$

0

.64‌

)

(

$

1

.22‌

)

(

$

1

.86‌

)

$

9

.89‌

2020

11

.36‌

0

.21‌

0

.43‌

0

.64‌

(

0

.21‌

)

–‌

(

0

.21‌

)

11

.79‌

2019

10

.60‌

0

.23‌

0

.74‌

0

.97‌

(

0

.21‌

)

–‌

(

0

.21‌

)

11

.36‌

2018

11

.01‌

0

.20‌

(

0

.39‌

)

(

0

.19‌

)

(

0

.22‌

)

–‌

(

0

.22‌

)

10

.60‌

2017

11

.17‌

0

.17‌

(

0

.20‌

)

(

0

.03‌

)

(

0

.13‌

)

–‌

(

0

.13‌

)

11

.01‌

Institutional

shares

2021

12

.03‌

0

.19‌

(

0

.20‌

)

(

0

.01‌

)

(

0

.68‌

)

(

1

.22‌

)

(

1

.90‌

)

10

.12‌

2020

11

.59‌

0

.26‌

0

.45‌

0

.71‌

(

0

.27‌

)

–‌

(

0

.27‌

)

12

.03‌

2019

10

.81‌

0

.29‌

0

.76‌

1

.05‌

(

0

.27‌

)

–‌

(

0

.27‌

)

11

.59‌

2018

11

.21‌

0

.25‌

(

0

.39‌

)

(

0

.14‌

)

(

0

.26‌

)

–‌

(

0

.26‌

)

10

.81‌

2017

11

.39‌

0

.21‌

(

0

.20‌

)

0

.01‌

(

0

.19‌

)

–‌

(

0

.19‌

)

11

.21‌

R-1

shares

2021

11

.82‌

0

.09‌

(

0

.19‌

)

(

0

.10‌

)

(

0

.61‌

)

(

1

.22‌

)

(

1

.83‌

)

9

.89‌

2020

11

.36‌

0

.16‌

0

.43‌

0

.59‌

(

0

.13‌

)

–‌

(

0

.13‌

)

11

.82‌

2019

10

.58‌

0

.19‌

0

.75‌

0

.94‌

(

0

.16‌

)

–‌

(

0

.16‌

)

11

.36‌

2018

10

.97‌

0

.15‌

(

0

.38‌

)

(

0

.23‌

)

(

0

.16‌

)

–‌

(

0

.16‌

)

10

.58‌

2017

11

.16‌

0

.12‌

(

0

.20‌

)

(

0

.08‌

)

(

0

.11‌

)

–‌

(

0

.11‌

)

10

.97‌

R-3

shares

2021

11

.78‌

0

.12‌

(

0

.20‌

)

(

0

.08‌

)

(

0

.62‌

)

(

1

.22‌

)

(

1

.84‌

)

9

.86‌

2020

11

.35‌

0

.19‌

0

.44‌

0

.63‌

(

0

.20‌

)

–‌

(

0

.20‌

)

11

.78‌

2019

10

.57‌

0

.22‌

0

.76‌

0

.98‌

(

0

.20‌

)

–‌

(

0

.20‌

)

11

.35‌

2018

10

.97‌

0

.19‌

(

0

.39‌

)

(

0

.20‌

)

(

0

.20‌

)

–‌

(

0

.20‌

)

10

.57‌

2017

11

.16‌

0

.15‌

(

0

.20‌

)

(

0

.05‌

)

(

0

.14‌

)

–‌

(

0

.14‌

)

10

.97‌

R-4

shares

2021

11

.88‌

0

.15‌

(

0

.20‌

)

(

0

.05‌

)

(

0

.64‌

)

(

1

.22‌

)

(

1

.86‌

)

9

.97‌

2020

11

.39‌

0

.22‌

0

.43‌

0

.65‌

(

0

.16‌

)

–‌

(

0

.16‌

)

11

.88‌

2019

10

.60‌

0

.24‌

0

.78‌

1

.02‌

(

0

.23‌

)

–‌

(

0

.23‌

)

11

.39‌

2018

11

.00‌

0

.21‌

(

0

.39‌

)

(

0

.18‌

)

(

0

.22‌

)

–‌

(

0

.22‌

)

10

.60‌

2017

11

.18‌

0

.17‌

(

0

.20‌

)

(

0

.03‌

)

(

0

.15‌

)

–‌

(

0

.15‌

)

11

.00‌

R-5

shares

2021

11

.85‌

0

.16‌

(

0

.20‌

)

(

0

.04‌

)

(

0

.65‌

)

(

1

.22‌

)

(

1

.87‌

)

9

.94‌

2020

11

.42‌

0

.23‌

0

.44‌

0

.67‌

(

0

.24‌

)

–‌

(

0

.24‌

)

11

.85‌

2019

10

.65‌

0

.26‌

0

.75‌

1

.01‌

(

0

.24‌

)

–‌

(

0

.24‌

)

11

.42‌

2018

11

.05‌

0

.22‌

(

0

.39‌

)

(

0

.17‌

)

(

0

.23‌

)

–‌

(

0

.23‌

)

10

.65‌

2017

11

.23‌

0

.18‌

(

0

.19‌

)

(

0

.01‌

)

(

0

.17‌

)

–‌

(

0

.17‌

)

11

.05‌

Financial

Highlights

(Continued)

Principal

Funds,

Inc.

See

accompanying

notes.

185

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

(

0

.44‌

)

%

(b)

$

36,254‌

0

.48‌

%

(c)

0

.52‌

%

(d)

1

.42‌

%

161

.7‌

%

5

.75‌

(b)

44,200‌

0

.57‌

(c)

0

.62‌

(d)

1

.79‌

94

.1‌

9

.38‌

(b)

29,025‌

0

.71‌

(c)

0

.91‌

(d)

2

.10‌

107

.7‌

(

1

.79‌

)

(b)

27,466‌

0

.62‌

(c)

0

.75‌

(d)

1

.86‌

102

.7‌

(

0

.20‌

)

(b)

30,315‌

0

.64‌

(c)

0

.70‌

(d)

1

.53‌

117

.8‌

(

0

.18‌

)

831,018‌

0

.14‌

(e)

–‌

1

.77‌

161

.7‌

6

.29‌

2,290,008‌

0

.14‌

(e)

–‌

2

.25‌

94

.1‌

9

.92‌

2,056,135‌

0

.16‌

(e)

–‌

2

.65‌

107

.7‌

(

1

.29‌

)

1,472,817‌

0

.16‌

(e)

–‌

2

.32‌

102

.7‌

0

.19‌

1,795,872‌

0

.23‌

(e)

–‌

1

.94‌

117

.8‌

(

1

.02‌

)

1,148‌

1

.01‌

(e)

–‌

0

.88‌

161

.7‌

5

.27‌

1,412‌

1

.02‌

(e)

–‌

1

.36‌

94

.1‌

8

.99‌

1,169‌

1

.04‌

(e)

–‌

1

.78‌

107

.7‌

(

2

.10‌

)

1,391‌

1

.04‌

(e)

–‌

1

.44‌

102

.7‌

(

0

.70‌

)

2,158‌

1

.11‌

(e)

–‌

1

.07‌

117

.8‌

(

0

.84‌

)

11,264‌

0

.70‌

(e)

–‌

1

.18‌

161

.7‌

5

.66‌

13,196‌

0

.71‌

(e)

–‌

1

.67‌

94

.1‌

9

.41‌

11,337‌

0

.73‌

(e)

–‌

2

.09‌

107

.7‌

(

1

.87‌

)

13,934‌

0

.73‌

(e)

–‌

1

.75‌

102

.7‌

(

0

.42‌

)

17,123‌

0

.80‌

(e)

–‌

1

.38‌

117

.8‌

(

0

.51‌

)

4,099‌

0

.51‌

(e)

–‌

1

.39‌

161

.7‌

5

.84‌

6,523‌

0

.52‌

(e)

–‌

1

.87‌

94

.1‌

9

.82‌

5,521‌

0

.54‌

(e)

–‌

2

.29‌

107

.7‌

(

1

.67‌

)

44,422‌

0

.54‌

(e)

–‌

1

.95‌

102

.7‌

(

0

.18‌

)

42,411‌

0

.61‌

(e)

–‌

1

.57‌

117

.8‌

(

0

.44‌

)

14,572‌

0

.39‌

(e)

–‌

1

.50‌

161

.7‌

6

.01‌

18,279‌

0

.40‌

(e)

–‌

1

.98‌

94

.1‌

9

.67‌

16,552‌

0

.42‌

(e)

–‌

2

.40‌

107

.7‌

(

1

.56‌

)

18,775‌

0

.42‌

(e)

–‌

2

.05‌

102

.7‌

(

0

.06‌

)

26,153‌

0

.49‌

(e)

–‌

1

.67‌

117

.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)

Reflects

Manager's

contractual

expense

limit

and/or

Distributor's

voluntary

distribution

fee

limit.

(d)

Excludes

expense

reimbursement

from

Manager

and/or

Distributor.

(e)

Reflects

Manager's

contractual

expense

limit.

Financial

Highlights

Principal

Funds,

Inc.

See

accompanying

notes.

186

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

August

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

DIVERSIFIED

REAL

ASSET

FUND

Class

A

shares

2021

$

11

.13‌

$

0

.22‌

$

2

.20‌

$

2

.42‌

(

$

0

.02‌

)

(

$

0

.02‌

)

$

13

.53‌

2020

11

.23‌

0

.17‌

(

0

.06‌

)

0

.11‌

(

0

.21‌

)

(

0

.21‌

)

11

.13‌

2019

11

.70‌

0

.26‌

(

0

.42‌

)

(

0

.16‌

)

(

0

.31‌

)

(

0

.31‌

)

11

.23‌

2018

11

.53‌

0

.24‌

0

.15‌

0

.39‌

(

0

.22‌

)

(

0

.22‌

)

11

.70‌

2017

11

.07‌

0

.17‌

0

.55‌

0

.72‌

(

0

.26‌

)

(

0

.26‌

)

11

.53‌

Institutional

shares

2021

11

.14‌

0

.24‌

2

.22‌

2

.46‌

(

0

.06‌

)

(

0

.06‌

)

13

.54‌

2020

11

.25‌

0

.21‌

(

0

.04‌

)

0

.17‌

(

0

.28‌

)

(

0

.28‌

)

11

.14‌

2019

11

.74‌

0

.31‌

(

0

.44‌

)

(

0

.13‌

)

(

0

.36‌

)

(

0

.36‌

)

11

.25‌

2018

11

.57‌

0

.29‌

0

.14‌

0

.43‌

(

0

.26‌

)

(

0

.26‌

)

11

.74‌

2017

11

.08‌

0

.23‌

0

.54‌

0

.77‌

(

0

.28‌

)

(

0

.28‌

)

11

.57‌

R-3

shares

2021

11

.07‌

0

.18‌

2

.20‌

2

.38‌

(

0

.02‌

)

(

0

.02‌

)

13

.43‌

2020

11

.20‌

0

.15‌

(

0

.05‌

)

0

.10‌

(

0

.23‌

)

(

0

.23‌

)

11

.07‌

2019

11

.69‌

0

.25‌

(

0

.43‌

)

(

0

.18‌

)

(

0

.31‌

)

(

0

.31‌

)

11

.20‌

2018

11

.53‌

0

.23‌

0

.13‌

0

.36‌

(

0

.20‌

)

(

0

.20‌

)

11

.69‌

2017

11

.06‌

0

.19‌

0

.52‌

0

.71‌

(

0

.24‌

)

(

0

.24‌

)

11

.53‌

R-4

shares

2021

11

.11‌

0

.21‌

2

.21‌

2

.42‌

(

0

.03‌

)

(

0

.03‌

)

13

.50‌

2020

11

.23‌

0

.18‌

(

0

.06‌

)

0

.12‌

(

0

.24‌

)

(

0

.24‌

)

11

.11‌

2019

11

.72‌

0

.26‌

(

0

.42‌

)

(

0

.16‌

)

(

0

.33‌

)

(

0

.33‌

)

11

.23‌

2018

11

.54‌

0

.25‌

0

.15‌

0

.40‌

(

0

.22‌

)

(

0

.22‌

)

11

.72‌

2017

11

.07‌

0

.20‌

0

.53‌

0

.73‌

(

0

.26‌

)

(

0

.26‌

)

11

.54‌

R-5

shares

2021

11

.10‌

0

.21‌

2

.23‌

2

.44‌

(

0

.03‌

)

(

0

.03‌

)

13

.51‌

2020

11

.23‌

0

.19‌

(

0

.06‌

)

0

.13‌

(

0

.26‌

)

(

0

.26‌

)

11

.10‌

2019

11

.73‌

0

.30‌

(

0

.44‌

)

(

0

.14‌

)

(

0

.36‌

)

(

0

.36‌

)

11

.23‌

2018

11

.56‌

0

.27‌

0

.14‌

0

.41‌

(

0

.24‌

)

(

0

.24‌

)

11

.73‌

2017

11

.08‌

0

.21‌

0

.54‌

0

.75‌

(

0

.27‌

)

(

0

.27‌

)

11

.56‌

R-6

shares

2021

11

.14‌

0

.28‌

2

.18‌

2

.46‌

(

0

.07‌

)

(

0

.07‌

)

13

.53‌

2020

11

.26‌

0

.22‌

(

0

.06‌

)

0

.16‌

(

0

.28‌

)

(

0

.28‌

)

11

.14‌

2019

11

.74‌

0

.32‌

(

0

.43‌

)

(

0

.11‌

)

(

0

.37‌

)

(

0

.37‌

)

11

.26‌

2018

11

.57‌

0

.29‌

0

.14‌

0

.43‌

(

0

.26‌

)

(

0

.26‌

)

11

.74‌

2017

11

.08‌

0

.27‌

0

.50‌

0

.77‌

(

0

.28‌

)

(

0

.28‌

)

11

.57‌

Financial

Highlights

(Continued)

Principal

Funds,

Inc.

See

accompanying

notes.

187

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

21

.79‌

%

(b)

$

83,941‌

1

.20‌

%

(c)

1

.74‌

%

70

.0‌

%

0

.89‌

(b)

43,485‌

1

.19‌

(c)

1

.57‌

85

.4‌

(

1

.11‌

)

(b)

54,880‌

1

.22‌

(c)

2

.35‌

71

.5‌

3

.36‌

(b)

107,180‌

1

.22‌

(c)

2

.05‌

84

.1‌

6

.63‌

(b)

118,212‌

1

.25‌

(c)

1

.58‌

65

.1‌

22

.18‌

2,086,484‌

0

.83‌

(c)

1

.97‌

70

.0‌

1

.36‌

1,960,593‌

0

.84‌

(c)

1

.95‌

85

.4‌

(

0

.83‌

)

2,388,382‌

0

.85‌

(c)

2

.74‌

71

.5‌

3

.72‌

2,518,033‌

0

.85‌

(c)

2

.45‌

84

.1‌

7

.16‌

2,591,713‌

0

.88‌

(c)

2

.08‌

65

.1‌

21

.47‌

225‌

1

.34‌

(c)

1

.49‌

70

.0‌

0

.78‌

138‌

1

.36‌

(c)

1

.39‌

85

.4‌

(

1

.27‌

)

113‌

1

.36‌

(c)

2

.22‌

71

.5‌

3

.15‌

81‌

1

.35‌

(c)

1

.99‌

84

.1‌

6

.60‌

17‌

1

.38‌

1

.71‌

65

.1‌

21

.79‌

14‌

1

.15‌

(c)

1

.68‌

70

.0‌

0

.95‌

12‌

1

.17‌

(c)

1

.61‌

85

.4‌

(

1

.13‌

)

12‌

1

.17‌

(c)

2

.36‌

71

.5‌

3

.41‌

(d)

15‌

1

.16‌

(c)

2

.17‌

84

.1‌

6

.82‌

(d)

11‌

1

.19‌

1

.76‌

65

.1‌

21

.99‌

38‌

1

.03‌

(c)

1

.71‌

70

.0‌

1

.01‌

32‌

1

.05‌

(c)

1

.71‌

85

.4‌

(

0

.92‌

)

74‌

1

.05‌

(c)

2

.71‌

71

.5‌

3

.53‌

12‌

1

.04‌

(c)

2

.35‌

84

.1‌

6

.93‌

11‌

1

.07‌

1

.90‌

65

.1‌

22

.14‌

2,213,151‌

0

.78‌

(c)

2

.22‌

70

.0‌

1

.32‌

1,162,658‌

0

.79‌

(c)

1

.99‌

85

.4‌

(

0

.68‌

)

1,330,773‌

0

.79‌

(c)

2

.82‌

71

.5‌

3

.78‌

1,523,846‌

0

.79‌

(c)

2

.50‌

84

.1‌

7

.17‌

1,568,988‌

0

.83‌

(c)

2

.42‌

65

.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)

Reflects

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.

Financial

Highlights

Principal

Funds,

Inc.

See

accompanying

notes.

188

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

August

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

EDGE

MIDCAP

FUND

Class

A

shares

2021

$

14

.76‌

$

0

.02‌

$

4

.61‌

$

4

.63‌

(

$

0

.05‌

)

(

$

0

.73‌

)

(

$

0

.78‌

)

$

18

.61‌

2020

14

.39‌

0

.06‌

0

.92‌

0

.98‌

(

0

.11‌

)

(

0

.50‌

)

(

0

.61‌

)

14

.76‌

2019(e)

11

.98‌

0

.06‌

2

.35‌

2

.41‌

–‌

14

.39‌

Institutional

shares

2021

14

.83‌

0

.08‌

4

.62‌

4

.70‌

(

0

.09‌

)

(

0

.73‌

)

(

0

.82‌

)

18

.71‌

2020

14

.42‌

0

.11‌

0

.92‌

1

.03‌

(

0

.12‌

)

(

0

.50‌

)

(

0

.62‌

)

14

.83‌

2019

14

.99‌

0

.11‌

0

.09‌

0

.20‌

(

0

.15‌

)

(

0

.62‌

)

(

0

.77‌

)

14

.42‌

2018

12

.60‌

0

.16‌

2

.42‌

2

.58‌

–‌

(

0

.19‌

)

(

0

.19‌

)

14

.99‌

2017

12

.24‌

0

.12‌

0

.78‌

0

.90‌

(

0

.10‌

)

(

0

.44‌

)

(

0

.54‌

)

12

.60‌

R-6

shares

2021

14

.88‌

0

.09‌

4

.65‌

4

.74‌

(

0

.11‌

)

(

0

.73‌

)

(

0

.84‌

)

18

.78‌

2020

14

.46‌

0

.13‌

0

.92‌

1

.05‌

(

0

.13‌

)

(

0

.50‌

)

(

0

.63‌

)

14

.88‌

2019

15

.03‌

0

.13‌

0

.09‌

0

.22‌

(

0

.17‌

)

(

0

.62‌

)

(

0

.79‌

)

14

.46‌

2018

12

.68‌

0

.16‌

2

.44‌

2

.60‌

(

0

.06‌

)

(

0

.19‌

)

(

0

.25‌

)

15

.03‌

2017(h)

12

.12‌

0

.09‌

0

.47‌

0

.56‌

–‌

12

.68‌

Financial

Highlights

(Continued)

Principal

Funds,

Inc.

See

accompanying

notes.

189

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

32

.16‌

%

(b)

$

21,225‌

1

.10‌

%

(c)

0

.13‌

%

14

.4‌

%

6

.54‌

(b)

,(d)

12,547‌

1

.10‌

(c)

0

.46‌

27

.9‌

20

.20‌

(b)

,(d)

,(f)

5,587‌

1

.10‌

(c)

,(g)

0

.59‌

(g)

19

.8‌

32

.55‌

112,703‌

0

.77‌

(c)

0

.46‌

14

.4‌

6

.97‌

82,198‌

0

.77‌

(c)

0

.79‌

27

.9‌

2

.47‌

34,358‌

0

.82‌

(c)

0

.81‌

19

.8‌

20

.58‌

14,470‌

0

.90‌

(c)

1

.17‌

17

.4‌

7

.51‌

1,289‌

0

.78‌

(c)

1

.00‌

11

.9‌

32

.68‌

451,070‌

0

.65‌

(c)

0

.57‌

14

.4‌

7

.11‌

758,215‌

0

.66‌

(c)

0

.90‌

27

.9‌

2

.56‌

653,991‌

0

.71‌

(c)

0

.90‌

19

.8‌

20

.69‌

657,980‌

0

.76‌

(c)

1

.15‌

17

.4‌

4

.62‌

(f)

286,832‌

0

.77‌

(c)

,(g)

1

.06‌

(g)

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)

Reflects

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.

(e)

Period

from

2018,

date

operations

commenced,

through

2019.

(f)

Total

return

amounts

have

not

been

annualized.

(g)

Computed

on

an

annualized

basis.

(h)

Period

from

2017,

date

operations

commenced,

through

Financial

Highlights

Principal

Funds,

Inc.

See

accompanying

notes.

190

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

August

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

GLOBAL

MULTI-STRATEGY

FUND

Class

A

shares

2021

$

10

.95‌

$

0

.03‌

$

0

.93‌

$

0

.96‌

(

$

0

.14‌

)

$

–‌

$

–‌

(

$

0

.14‌

)

$

11

.77‌

2020

10

.64‌

0

.18‌

0

.13‌

0

.31‌

–‌

10

.95‌

2019

11

.09‌

0

.18‌

(

0

.02‌

)

0

.16‌

(

0

.11‌

)

(

0

.47‌

)

(

0

.03‌

)

(

0

.61‌

)

10

.64‌

2018

11

.28‌

0

.11‌

(

0

.01‌

)

0

.10‌

(

0

.05‌

)

(

0

.24‌

)

–‌

(

0

.29‌

)

11

.09‌

2017

10

.77‌

0

.08‌

0

.43‌

0

.51‌

–‌

11

.28‌

Institutional

shares

2021

11

.12‌

0

.10‌

0

.93‌

1

.03‌

(

0

.19‌

)

–‌

(

0

.19‌

)

11

.96‌

2020

10

.76‌

0

.21‌

0

.15‌

0

.36‌

–‌

11

.12‌

2019

11

.21‌

0

.23‌

(

0

.02‌

)

0

.21‌

(

0

.16‌

)

(

0

.47‌

)

(

0

.03‌

)

(

0

.66‌

)

10

.76‌

2018

11

.39‌

0

.15‌

–‌

0

.15‌

(

0

.09‌

)

(

0

.24‌

)

–‌

(

0

.33‌

)

11

.21‌

2017

10

.86‌

0

.11‌

0

.44‌

0

.55‌

(

0

.02‌

)

–‌

(

0

.02‌

)

11

.39‌

R-6

shares

2021

11

.12‌

0

.10‌

0

.93‌

1

.03‌

(

0

.19‌

)

–‌

(

0

.19‌

)

11

.96‌

2020

10

.75‌

0

.29‌

0

.08‌

0

.37‌

–‌

11

.12‌

2019

11

.21‌

0

.23‌

(

0

.02‌

)

0

.21‌

(

0

.17‌

)

(

0

.47‌

)

(

0

.03‌

)

(

0

.67‌

)

10

.75‌

2018

11

.39‌

0

.16‌

(

0

.01‌

)

0

.15‌

(

0

.09‌

)

(

0

.24‌

)

–‌

(

0

.33‌

)

11

.21‌

2017(g)

11

.28‌

0

.04‌

0

.07‌

0

.11‌

–‌

11

.39‌

Financial

Highlights

(Continued)

Principal

Funds,

Inc.

See

accompanying

notes.

191

Total

Return

Net

Assets,

End

of

Period

(in

thousands)

Ratio

of

Expenses

to

Average

Net

Assets

Ratio

of

Expenses

to

Average

Net

Assets

(Excluding

Dividends

and

Interest

Expense

on

Short

Sales,

Short

Sale

Fees

and

Reverse

Repurchase

Agreement

Expense)

Ratio

of

Net

Investment

Income

to

Average

Net

Assets

Portfolio

Turnover

Rate

8

.71‌

%

(b)

,(c)

$

39,485‌

2

.60‌

%

(d)

2

.12‌

%

(d)

,(e)

0

.30‌

%

289

.8‌

%

3

.01‌

(b)

,(c)

27,072‌

3

.68‌

(d)

,(f)

2

.11‌

(d)

,(e)

,(f)

1

.68‌

439

.7‌

1

.82‌

(c)

41,100‌

3

.37‌

(d)

,(f)

2

.02‌

(d)

,(e)

,(f)

1

.72‌

387

.8‌

0

.90‌

(c)

63,860‌

2

.48‌

(d)

1

.95‌

(d)

,(e)

1

.02‌

378

.0‌

4

.74‌

(c)

112,799‌

2

.50‌

(d)

1

.92‌

(d)

,(e)

0

.72‌

317

.6‌

9

.27‌

(b)

351,188‌

2

.16‌

(d)

1

.63‌

(d)

,(e)

0

.89‌

289

.8‌

3

.44‌

(b)

591,298‌

3

.21‌

(d)

,(f)

1

.64‌

(d)

,(e)

,(f)

1

.98‌

439

.7‌

2

.24‌

453,013‌

2

.99‌

(d)

,(f)

1

.64‌

(d)

,(e)

,(f)

2

.11‌

387

.8‌

1

.29‌

749,738‌

2

.16‌

(d)

1

.63‌

(d)

,(e)

1

.35‌

378

.0‌

5

.04‌

1,156,731‌

2

.18‌

(d)

1

.60‌

(d)

,(e)

1

.03‌

317

.6‌

9

.37‌

173,029‌

2

.08‌

(d)

1

.58‌

(d)

,(e)

0

.89‌

289

.8‌

3

.44‌

166,448‌

3

.15‌

(d)

,(f)

1

.58‌

(d)

,(e)

,(f)

2

.74‌

439

.7‌

2

.28‌

818,258‌

2

.91‌

(d)

,(f)

1

.56‌

(d)

,(e)

,(f)

2

.19‌

387

.8‌

1

.25‌

(b)

1,780,595‌

2

.08‌

(d)

1

.55‌

(d)

,(e)

1

.43‌

378

.0‌

1

.06‌

(b)

,(h)

1,532,177‌

2

.10‌

(d)

,(i)

1

.54‌

(d)

,(e)

,(i)

1

.51‌

(i)

317

.6‌

(a)

Calculated

based

on

average

shares

outstanding

during

the

period.

(b)

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.

(c)

Total

return

is

calculated

without

the

front-end

sales

charge

or

contingent

deferred

sales

charge,

if

applicable.

(d)

Reflects

Manager's

contractual

expense

limit.

(e)

Excludes

dividends

and

interest

expense

on

short

sales

and

short

sale

fees

and

reverse

repurchase

agreement

expense.

See

"Operating

Policies"

in

notes

to

financial

statements.

(f)

Includes

0.01%

of

expenses

associated

with

fund

investments.

The

expense

is

not

subject

to

the

Manager's

contractual

expense

limit.

(g)

Period

from

2017,

date

operations

commenced,

through

(h)

Total

return

amounts

have

not

been

annualized.

(i)

Computed

on

an

annualized

basis.

Financial

Highlights

Principal

Funds,

Inc.

See

accompanying

notes.

192

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

August

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

INTERNATIONAL

EQUITY

INDEX

FUND

Institutional

shares

2021

$

10

.06‌

$

0

.27‌

$

2

.32‌

$

2

.59‌

(

$

0

.23‌

)

(

$

0

.03‌

)

(

$

0

.26‌

)

$

12

.39‌

2020

9

.83‌

0

.21‌

0

.37‌

0

.58‌

(

0

.32‌

)

(

0

.03‌

)

(

0

.35‌

)

10

.06‌

2019

10

.57‌

0

.30‌

(

0

.69‌

)

(

0

.39‌

)

(

0

.26‌

)

(

0

.09‌

)

(

0

.35‌

)

9

.83‌

2018

10

.55‌

0

.28‌

0

.12‌

0

.40‌

(

0

.30‌

)

(

0

.08‌

)

(

0

.38‌

)

10

.57‌

2017

9

.24‌

0

.27‌

1

.29‌

1

.56‌

(

0

.25‌

)

–‌

(

0

.25‌

)

10

.55‌

R-1

shares

2021

9

.73‌

0

.16‌

2

.25‌

2

.41‌

(

0

.14‌

)

(

0

.03‌

)

(

0

.17‌

)

11

.97‌

2020

9

.50‌

0

.12‌

0

.35‌

0

.47‌

(

0

.21‌

)

(

0

.03‌

)

(

0

.24‌

)

9

.73‌

2019

10

.20‌

0

.20‌

(

0

.65‌

)

(

0

.45‌

)

(

0

.16‌

)

(

0

.09‌

)

(

0

.25‌

)

9

.50‌

2018

10

.20‌

0

.18‌

0

.11‌

0

.29‌

(

0

.21‌

)

(

0

.08‌

)

(

0

.29‌

)

10

.20‌

2017

8

.93‌

0

.18‌

1

.26‌

1

.44‌

(

0

.17‌

)

–‌

(

0

.17‌

)

10

.20‌

R-3

shares

2021

9

.85‌

0

.19‌

2

.29‌

2

.48‌

(

0

.17‌

)

(

0

.03‌

)

(

0

.20‌

)

12

.13‌

2020

9

.64‌

0

.16‌

0

.35‌

0

.51‌

(

0

.27‌

)

(

0

.03‌

)

(

0

.30‌

)

9

.85‌

2019

10

.35‌

0

.23‌

(

0

.65‌

)

(

0

.42‌

)

(

0

.20‌

)

(

0

.09‌

)

(

0

.29‌

)

9

.64‌

2018

10

.35‌

0

.22‌

0

.10‌

0

.32‌

(

0

.24‌

)

(

0

.08‌

)

(

0

.32‌

)

10

.35‌

2017

9

.07‌

0

.20‌

1

.28‌

1

.48‌

(

0

.20‌

)

–‌

(

0

.20‌

)

10

.35‌

R-4

shares

2021

9

.97‌

0

.22‌

2

.31‌

2

.53‌

(

0

.20‌

)

(

0

.03‌

)

(

0

.23‌

)

12

.27‌

2020

9

.75‌

0

.18‌

0

.36‌

0

.54‌

(

0

.29‌

)

(

0

.03‌

)

(

0

.32‌

)

9

.97‌

2019

10

.48‌

0

.25‌

(

0

.67‌

)

(

0

.42‌

)

(

0

.22‌

)

(

0

.09‌

)

(

0

.31‌

)

9

.75‌

2018

10

.46‌

0

.24‌

0

.12‌

0

.36‌

(

0

.26‌

)

(

0

.08‌

)

(

0

.34‌

)

10

.48‌

2017

9

.17‌

0

.20‌

1

.31‌

1

.51‌

(

0

.22‌

)

–‌

(

0

.22‌

)

10

.46‌

R-5

shares

2021

10

.00‌

0

.24‌

2

.30‌

2

.54‌

(

0

.20‌

)

(

0

.03‌

)

(

0

.23‌

)

12

.31‌

2020

9

.78‌

0

.19‌

0

.36‌

0

.55‌

(

0

.30‌

)

(

0

.03‌

)

(

0

.33‌

)

10

.00‌

2019

10

.50‌

0

.27‌

(

0

.67‌

)

(

0

.40‌

)

(

0

.23‌

)

(

0

.09‌

)

(

0

.32‌

)

9

.78‌

2018

10

.49‌

0

.24‌

0

.12‌

0

.36‌

(

0

.27‌

)

(

0

.08‌

)

(

0

.35‌

)

10

.50‌

2017

9

.18‌

0

.23‌

1

.31‌

1

.54‌

(

0

.23‌

)

–‌

(

0

.23‌

)

10

.49‌

R-6

shares

2021

10

.06‌

0

.27‌

2

.33‌

2

.60‌

(

0

.23‌

)

(

0

.03‌

)

(

0

.26‌

)

12

.40‌

2020

9

.83‌

0

.22‌

0

.36‌

0

.58‌

(

0

.32‌

)

(

0

.03‌

)

(

0

.35‌

)

10

.06‌

2019

10

.57‌

0

.30‌

(

0

.69‌

)

(

0

.39‌

)

(

0

.26‌

)

(

0

.09‌

)

(

0

.35‌

)

9

.83‌

2018

10

.54‌

0

.29‌

0

.12‌

0

.41‌

(

0

.30‌

)

(

0

.08‌

)

(

0

.38‌

)

10

.57‌

2017(d)

9

.01‌

0

.14‌

1

.39‌

1

.53‌

–‌

10

.54‌

Financial

Highlights

(Continued)

Principal

Funds,

Inc.

See

accompanying

notes.

193

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

26

.03‌

%

$

50,246‌

0

.31‌

%

(b)

2

.38‌

%

21

.7‌

%

5

.77‌

35,803‌

0

.31‌

(b)

2

.11‌

31

.1‌

(

3

.33‌

)

50,221‌

0

.31‌

(b)

3

.09‌

23

.4‌

3

.69‌

46,042‌

0

.34‌

(b)

2

.54‌

27

.2‌

17

.42‌

67,784‌

0

.32‌

(b)

2

.83‌

24

.7‌

24

.95‌

491‌

1

.19‌

1

.46‌

21

.7‌

4

.86‌

491‌

1

.19‌

1

.31‌

31

.1‌

(

4

.19‌

)

588‌

1

.20‌

2

.09‌

23

.4‌

2

.78‌

722‌

1

.19‌

1

.71‌

27

.2‌

16

.43‌

1,000‌

1

.19‌

1

.93‌

24

.7‌

25

.42‌

16,698‌

0

.88‌

1

.75‌

21

.7‌

5

.11‌

15,706‌

0

.88‌

1

.65‌

31

.1‌

(

3

.82‌

)

16,499‌

0

.89‌

2

.41‌

23

.4‌

3

.03‌

17,816‌

0

.88‌

2

.04‌

27

.2‌

16

.77‌

18,585‌

0

.88‌

2

.14‌

24

.7‌

25

.56‌

10,509‌

0

.69‌

1

.96‌

21

.7‌

5

.34‌

9,023‌

0

.69‌

1

.84‌

31

.1‌

(

3

.72‌

)

7,466‌

0

.70‌

2

.51‌

23

.4‌

3

.37‌

11,977‌

0

.69‌

2

.22‌

27

.2‌

16

.93‌

13,372‌

0

.69‌

2

.14‌

24

.7‌

25

.66‌

18,863‌

0

.57‌

2

.08‌

21

.7‌

5

.45‌

16,208‌

0

.57‌

1

.95‌

31

.1‌

(

3

.50‌

)

16,948‌

0

.58‌

2

.80‌

23

.4‌

3

.38‌

18,479‌

0

.57‌

2

.26‌

27

.2‌

17

.23‌

29,429‌

0

.57‌

2

.35‌

24

.7‌

26

.14‌

1,151,273‌

0

.29‌

(b)

2

.35‌

21

.7‌

5

.66‌

(c)

1,020,094‌

0

.29‌

(b)

2

.25‌

31

.1‌

(

3

.23‌

)

(c)

1,003,550‌

0

.28‌

(b)

3

.04‌

23

.4‌

3

.80‌

997,061‌

0

.27‌

(b)

2

.67‌

27

.2‌

16

.98‌

(e)

924,600‌

0

.27‌

(b)

,(f)

2

.02‌

(f)

24

.7‌

(a)

Calculated

based

on

average

shares

outstanding

during

the

period.

(b)

Reflects

Manager's

contractual

expense

limit.

(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)

Period

from

2017,

date

operations

commenced,

through

(e)

Total

return

amounts

have

not

been

annualized.

(f)

Computed

on

an

annualized

basis.

Financial

Highlights

Principal

Funds,

Inc.

See

accompanying

notes.

194

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

August

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

INTERNATIONAL

SMALL

COMPANY

FUND

Institutional

shares

2021

$

10

.63‌

$

0

.12‌

$

2

.87‌

$

2

.99‌

(

$

0

.15‌

)

$

–‌

(

$

0

.15‌

)

$

13

.47‌

2020

10

.46‌

0

.09‌

0

.40‌

0

.49‌

(

0

.32‌

)

–‌

(

0

.32‌

)

10

.63‌

2019

12

.36‌

0

.14‌

(

1

.17‌

)

(

1

.03‌

)

(

0

.14‌

)

(

0

.73‌

)

(

0

.87‌

)

10

.46‌

2018

12

.17‌

0

.15‌

0

.67‌

0

.82‌

(

0

.26‌

)

(

0

.37‌

)

(

0

.63‌

)

12

.36‌

2017

9

.87‌

0

.18‌

2

.15‌

2

.33‌

(

0

.03‌

)

–‌

(

0

.03‌

)

12

.17‌

R-6

shares

2021

10

.70‌

0

.13‌

2

.87‌

3

.00‌

(

0

.15‌

)

–‌

(

0

.15‌

)

13

.55‌

2020

10

.52‌

0

.09‌

0

.42‌

0

.51‌

(

0

.33‌

)

–‌

(

0

.33‌

)

10

.70‌

2019

12

.42‌

0

.14‌

(

1

.16‌

)

(

1

.02‌

)

(

0

.15‌

)

(

0

.73‌

)

(

0

.88‌

)

10

.52‌

2018

12

.21‌

0

.13‌

0

.71‌

0

.84‌

(

0

.26‌

)

(

0

.37‌

)

(

0

.63‌

)

12

.42‌

2017(c)

9

.83‌

0

.02‌

2

.36‌

2

.38‌

–‌

12

.21‌

Financial

Highlights

(Continued)

Principal

Funds,

Inc.

See

accompanying

notes.

195

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

28

.27‌

%

$

94,066‌

1

.19‌

%

(b)

0

.96‌

%

54

.6‌

%

4

.49‌

72,515‌

1

.20‌

(b)

0

.88‌

44

.1‌

(

7

.31‌

)

34,866‌

1

.20‌

(b)

1

.36‌

46

.8‌

6

.63‌

18,212‌

1

.20‌

(b)

1

.19‌

45

.9‌

23

.66‌

1,991‌

1

.08‌

(b)

1

.72‌

58

.8‌

28

.27‌

1,087,460‌

1

.08‌

(b)

1

.11‌

54

.6‌

4

.67‌

966,964‌

1

.08‌

(b)

0

.91‌

44

.1‌

(

7

.20‌

)

855,932‌

1

.07‌

(b)

1

.36‌

46

.8‌

6

.79‌

976,593‌

1

.06‌

(b)

1

.06‌

45

.9‌

24

.21‌

(d)

1,002,985‌

1

.06‌

(b)

,(e)

0

.24‌

(e)

58

.8‌

(a)

Calculated

based

on

average

shares

outstanding

during

the

period.

(b)

Reflects

Manager's

contractual

expense

limit.

(c)

Period

from

2017,

date

operations

commenced,

through

(d)

Total

return

amounts

have

not

been

annualized.

(e)

Computed

on

an

annualized

basis.

Financial

Highlights

Principal

Funds,

Inc.

See

accompanying

notes.

196

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

August

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

OPPORTUNISTIC

MUNICIPAL

FUND

Class

A

shares

2021

$

10

.96‌

$

0

.37‌

$

0

.76‌

$

1

.13‌

(

$

0

.38‌

)

(

$

0

.38‌

)

$

11

.71‌

2020

11

.26‌

0

.36‌

(

0

.30‌

)

0

.06‌

(

0

.36‌

)

(

0

.36‌

)

10

.96‌

2019

10

.60‌

0

.43‌

0

.64‌

1

.07‌

(

0

.41‌

)

(

0

.41‌

)

11

.26‌

2018

10

.65‌

0

.42‌

(

0

.07‌

)

0

.35‌

(

0

.40‌

)

(

0

.40‌

)

10

.60‌

2017

11

.03‌

0

.40‌

(

0

.40‌

)

–‌

(

0

.38‌

)

(

0

.38‌

)

10

.65‌

Institutional

shares

2021

10

.97‌

0

.40‌

0

.76‌

1

.16‌

(

0

.41‌

)

(

0

.41‌

)

11

.72‌

2020

11

.26‌

0

.40‌

(

0

.30‌

)

0

.10‌

(

0

.39‌

)

(

0

.39‌

)

10

.97‌

2019

10

.61‌

0

.46‌

0

.63‌

1

.09‌

(

0

.44‌

)

(

0

.44‌

)

11

.26‌

2018

10

.66‌

0

.45‌

(

0

.07‌

)

0

.38‌

(

0

.43‌

)

(

0

.43‌

)

10

.61‌

2017

11

.03‌

0

.43‌

(

0

.39‌

)

0

.04‌

(

0

.41‌

)

(

0

.41‌

)

10

.66‌

Financial

Highlights

(Continued)

Principal

Funds,

Inc.

See

accompanying

notes.

197

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

10

.43‌

%

(b)

$

59,266‌

0

.88‌

%

(c)

0

.84‌

%

(c)

,(d)

3

.26‌

%

48

.0‌

%

0

.62‌

(b)

50,459‌

0

.91‌

(c)

0

.84‌

(c)

,(d)

3

.35‌

76

.6‌

10

.36‌

(b)

53,756‌

0

.98‌

(c)

0

.86‌

(c)

,(d)

4

.01‌

66

.1‌

3

.37‌

(b)

46,667‌

1

.00‌

(c)

0

.90‌

(c)

,(d)

3

.94‌

76

.0‌

0

.13‌

(b)

40,758‌

0

.95‌

(c)

0

.89‌

(c)

,(d)

3

.83‌

67

.9‌

10

.73‌

116,210‌

0

.60‌

(c)

0

.56‌

(c)

,(d)

3

.52‌

48

.0‌

0

.99‌

82,465‌

0

.63‌

(c)

0

.56‌

(c)

,(d)

3

.64‌

76

.6‌

10

.55‌

82,132‌

0

.70‌

(c)

0

.58‌

(c)

,(d)

4

.27‌

66

.1‌

3

.66‌

55,466‌

0

.72‌

(c)

0

.62‌

(c)

,(d)

4

.21‌

76

.0‌

0

.48‌

61,797‌

0

.69‌

(c)

0

.63‌

(c)

,(d)

4

.10‌

67

.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)

Reflects

Manager's

contractual

expense

limit.

(d)

Excludes

interest

expense

and

fees

paid

through

inverse

floater

agreements.

See

"Operating

Policies"

in

notes

to

financial

statements.

Financial

Highlights

Principal

Funds,

Inc.

See

accompanying

notes.

198

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

August

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

ORIGIN

EMERGING

MARKETS

FUND

Class

A

shares

2021

$

12

.36‌

$

0

.14‌

$

1

.71‌

$

1

.85‌

(

$

0

.05‌

)

(

$

0

.05‌

)

$

14

.16‌

2020

10

.63‌

0

.11‌

1

.77‌

1

.88‌

(

0

.15‌

)

(

0

.15‌

)

12

.36‌

2019

11

.28‌

0

.11‌

(

0

.68‌

)

(

0

.57‌

)

(

0

.08‌

)

(

0

.08‌

)

10

.63‌

2018

11

.74‌

0

.12‌

(

0

.52‌

)

(

0

.40‌

)

(

0

.06‌

)

(

0

.06‌

)

11

.28‌

2017

9

.07‌

0

.18‌

2

.52‌

2

.70‌

(

0

.03‌

)

(

0

.03‌

)

11

.74‌

Institutional

shares

2021

12

.17‌

0

.18‌

1

.69‌

1

.87‌

(

0

.09‌

)

(

0

.09‌

)

13

.95‌

2020

10

.47‌

0

.16‌

1

.74‌

1

.90‌

(

0

.20‌

)

(

0

.20‌

)

12

.17‌

2019

11

.16‌

0

.18‌

(

0

.71‌

)

(

0

.53‌

)

(

0

.16‌

)

(

0

.16‌

)

10

.47‌

2018

11

.61‌

0

.07‌

(

0

.41‌

)

(

0

.34‌

)

(

0

.11‌

)

(

0

.11‌

)

11

.16‌

2017

8

.97‌

0

.05‌

2

.66‌

2

.71‌

(

0

.07‌

)

(

0

.07‌

)

11

.61‌

R-6

shares

2021

12

.18‌

0

.22‌

1

.68‌

1

.90‌

(

0

.10‌

)

(

0

.10‌

)

13

.98‌

2020

10

.48‌

0

.16‌

1

.75‌

1

.91‌

(

0

.21‌

)

(

0

.21‌

)

12

.18‌

2019

11

.16‌

0

.25‌

(

0

.76‌

)

(

0

.51‌

)

(

0

.17‌

)

(

0

.17‌

)

10

.48‌

2018

11

.61‌

0

.15‌

(

0

.49‌

)

(

0

.34‌

)

(

0

.11‌

)

(

0

.11‌

)

11

.16‌

2017

8

.97‌

0

.50‌

2

.21‌

2

.71‌

(

0

.07‌

)

(

0

.07‌

)

11

.61‌

Financial

Highlights

(Continued)

Principal

Funds,

Inc.

See

accompanying

notes.

199

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

14

.95‌

%

(b)

$

9,524‌

1

.60‌

%

(c)

1

.00‌

%

71

.9‌

%

17

.73‌

(b)

4,003‌

1

.60‌

(c)

0

.96‌

72

.9‌

(

4

.94‌

)

(b)

2,455‌

1

.66‌

(c)

1

.08‌

59

.4‌

(

3

.49‌

)

(b)

4,384‌

1

.75‌

(c)

0

.97‌

52

.3‌

29

.91‌

(b)

3,003‌

1

.75‌

(c)

1

.83‌

66

.3‌

15

.42‌

124,727‌

1

.20‌

(c)

1

.30‌

71

.9‌

18

.21‌

26,478‌

1

.20‌

(c)

1

.44‌

72

.9‌

(

4

.55‌

)

11,710‌

1

.22‌

(c)

1

.78‌

59

.4‌

(

2

.98‌

)

12,032‌

1

.25‌

(c)

0

.58‌

52

.3‌

30

.58‌

35,584‌

1

.24‌

(c)

0

.51‌

66

.3‌

15

.61‌

3,729,485‌

1

.05‌

(c)

1

.56‌

71

.9‌

18

.30‌

1,827,389‌

1

.07‌

(c)

1

.43‌

72

.9‌

(

4

.42‌

)

1,082,059‌

1

.12‌

(c)

2

.40‌

59

.4‌

(

2

.97‌

)

622,846‌

1

.21‌

(c)

1

.21‌

52

.3‌

30

.54‌

662,808‌

1

.21‌

(c)

4

.54‌

66

.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)

Reflects

Manager's

contractual

expense

limit.

Financial

Highlights

Principal

Funds,

Inc.

See

accompanying

notes.

200

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

August

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

SMALL-MIDCAP

DIVIDEND

INCOME

FUND

Class

A

shares

2021

$

11

.91‌

$

0

.10‌

$

5

.16‌

$

5

.26‌

(

$

0

.16‌

)

$

–‌

(

$

0

.16‌

)

$

17

.01‌

2020

13

.96‌

0

.16‌

(

1

.88‌

)

(

1

.72‌

)

(

0

.23‌

)

(

0

.10‌

)

(

0

.33‌

)

11

.91‌

2019

17

.84‌

0

.28‌

(

1

.92‌

)

(

1

.64‌

)

(

0

.35‌

)

(

1

.89‌

)

(

2

.24‌

)

13

.96‌

2018

16

.57‌

0

.34‌

1

.92‌

2

.26‌

(

0

.21‌

)

(

0

.78‌

)

(

0

.99‌

)

17

.84‌

2017

14

.95‌

0

.35‌

1

.60‌

1

.95‌

(

0

.33‌

)

–‌

(

0

.33‌

)

16

.57‌

Class

C

shares

2021

11

.78‌

(

0

.01‌

)

5

.11‌

5

.10‌

(

0

.07‌

)

–‌

(

0

.07‌

)

16

.81‌

2020

13

.82‌

0

.06‌

(

1

.86‌

)

(

1

.80‌

)

(

0

.14‌

)

(

0

.10‌

)

(

0

.24‌

)

11

.78‌

2019

17

.68‌

0

.17‌

(

1

.90‌

)

(

1

.73‌

)

(

0

.24‌

)

(

1

.89‌

)

(

2

.13‌

)

13

.82‌

2018

16

.43‌

0

.21‌

1

.90‌

2

.11‌

(

0

.08‌

)

(

0

.78‌

)

(

0

.86‌

)

17

.68‌

2017

14

.84‌

0

.23‌

1

.60‌

1

.83‌

(

0

.24‌

)

–‌

(

0

.24‌

)

16

.43‌

Institutional

shares

2021

11

.97‌

0

.15‌

5

.18‌

5

.33‌

(

0

.19‌

)

–‌

(

0

.19‌

)

17

.11‌

2020

14

.04‌

0

.19‌

(

1

.89‌

)

(

1

.70‌

)

(

0

.27‌

)

(

0

.10‌

)

(

0

.37‌

)

11

.97‌

2019

17

.92‌

0

.32‌

(

1

.91‌

)

(

1

.59‌

)

(

0

.40‌

)

(

1

.89‌

)

(

2

.29‌

)

14

.04‌

2018

16

.65‌

0

.39‌

1

.92‌

2

.31‌

(

0

.26‌

)

(

0

.78‌

)

(

1

.04‌

)

17

.92‌

2017

15

.01‌

0

.41‌

1

.61‌

2

.02‌

(

0

.38‌

)

–‌

(

0

.38‌

)

16

.65‌

R-6

shares

2021

12

.03‌

0

.15‌

5

.22‌

5

.37‌

(

0

.20‌

)

–‌

(

0

.20‌

)

17

.20‌

2020

14

.10‌

0

.20‌

(

1

.89‌

)

(

1

.69‌

)

(

0

.28‌

)

(

0

.10‌

)

(

0

.38‌

)

12

.03‌

2019

17

.98‌

0

.33‌

(

1

.93‌

)

(

1

.60‌

)

(

0

.39‌

)

(

1

.89‌

)

(

2

.28‌

)

14

.10‌

2018

16

.66‌

0

.40‌

1

.94‌

2

.34‌

(

0

.24‌

)

(

0

.78‌

)

(

1

.02‌

)

17

.98‌

2017(d)

16

.17‌

0

.33‌

0

.22‌

0

.55‌

(

0

.06‌

)

–‌

(

0

.06‌

)

16

.66‌

Financial

Highlights

(Continued)

Principal

Funds,

Inc.

See

accompanying

notes.

201

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

44

.42‌

%

(b)

$

148,411‌

1

.12‌

%

(c)

0

.70‌

%

74

.6‌

%

(

12

.55‌

)

(b)

103,382‌

1

.12‌

(c)

1

.20‌

28

.9‌

(

7

.83‌

)

(b)

147,402‌

1

.13‌

(c)

1

.91‌

21

.9‌

13

.93‌

(b)

214,620‌

1

.13‌

(c)

1

.98‌

31

.5‌

13

.17‌

(b)

232,872‌

1

.17‌

2

.15‌

25

.5‌

43

.44‌

(b)

69,017‌

1

.87‌

(c)

(

0

.03‌

)

74

.6‌

(

13

.25‌

)

(b)

71,660‌

1

.87‌

(c)

0

.45‌

28

.9‌

(

8

.50‌

)

(b)

118,135‌

1

.88‌

(c)

1

.16‌

21

.9‌

13

.08‌

(b)

170,893‌

1

.88‌

(c)

1

.23‌

31

.5‌

12

.37‌

(b)

178,599‌

1

.92‌

(c)

1

.41‌

25

.5‌

44

.89‌

833,344‌

0

.85‌

(c)

1

.02‌

74

.6‌

(

12

.36‌

)

1,408,105‌

0

.85‌

(c)

1

.47‌

28

.9‌

(

7

.54‌

)

1,892,406‌

0

.86‌

(c)

2

.19‌

21

.9‌

14

.20‌

2,453,527‌

0

.86‌

(c)

2

.25‌

31

.5‌

13

.56‌

2,179,792‌

0

.86‌

(c)

2

.51‌

25

.5‌

45

.03‌

61,986‌

0

.79‌

(c)

0

.93‌

74

.6‌

(

12

.24‌

)

9,135‌

0

.79‌

(c)

1

.52‌

28

.9‌

(

7

.54‌

)

8,589‌

0

.79‌

(c)

2

.27‌

21

.9‌

14

.39‌

7,737‌

0

.78‌

(c)

2

.28‌

31

.5‌

3

.43‌

(e)

610,070‌

0

.77‌

(c)

,(f)

2

.96‌

(f)

25

.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)

Reflects

Manager's

contractual

expense

limit.

(d)

Period

from

2017,

date

operations

commenced,

through

(e)

Total

return

amounts

have

not

been

annualized.

(f)

Computed

on

an

annualized

basis.

Financial

Highlights

Principal

Funds,

Inc.

See

accompanying

notes.

202

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

August

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

SMALL-MIDCAP

GROWTH

FUND

Institutional

shares

2021

$

14

.33‌

(

$

0

.06‌

)

$

6

.31‌

$

6

.25‌

(

$

1

.42‌

)

(

$

1

.42‌

)

$

19

.16‌

2020

10

.26‌

(

0

.06‌

)

4

.13‌

4

.07‌

–‌

14

.33‌

2019(d)

10

.00‌

(

0

.01‌

)

0

.27‌

0

.26‌

–‌

10

.26‌

Financial

Highlights

(Continued)

Principal

Funds,

Inc.

See

accompanying

notes.

203

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

44

.49‌

%

(b)

$

11,489‌

0

.83‌

%

(c)

(

0

.33‌

)

%

148

.4‌

%

39

.77‌

(b)

7,626‌

0

.83‌

(c)

(

0

.59‌

)

134

.3‌

2

.60‌

(e)

5,131‌

0

.83‌

(c)

,(f)

(

0

.48‌

)

(f)

175

.8‌

(f)

(a)

Calculated

based

on

average

shares

outstanding

during

the

period.

(b)

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.

(c)

Reflects

Manager's

contractual

expense

limit.

(d)

Period

from

2019,

date

operations

commenced,

through

2019.

(e)

Total

return

amounts

have

not

been

annualized.

(f)

Computed

on

an

annualized

basis.

Financial

Highlights

Principal

Funds,

Inc.

See

accompanying

notes.

204

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

August

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

SPECTRUM

PREFERRED

AND

CAPITAL

SECURITIES

INCOME

FUND

Class

A

shares

2021

$

10

.32‌

$

0

.38‌

$

0

.36‌

$

0

.74‌

(

$

0

.42‌

)

$

–‌

(

$

0

.42‌

)

$

10

.64‌

2020

10

.30‌

0

.42‌

0

.05‌

0

.47‌

(

0

.45‌

)

–‌

(

0

.45‌

)

10

.32‌

2019

10

.06‌

0

.49‌

0

.26‌

0

.75‌

(

0

.51‌

)

–‌

(

0

.51‌

)

10

.30‌

2018

10

.53‌

0

.50‌

(

0

.46‌

)

0

.04‌

(

0

.49‌

)

(

0

.02‌

)

(

0

.51‌

)

10

.06‌

2017

10

.36‌

0

.49‌

0

.24‌

0

.73‌

(

0

.47‌

)

(

0

.09‌

)

(

0

.56‌

)

10

.53‌

Class

C

shares

2021

10

.31‌

0

.30‌

0

.37‌

0

.67‌

(

0

.34‌

)

–‌

(

0

.34‌

)

10

.64‌

2020

10

.29‌

0

.35‌

0

.04‌

0

.39‌

(

0

.37‌

)

–‌

(

0

.37‌

)

10

.31‌

2019

10

.05‌

0

.42‌

0

.25‌

0

.67‌

(

0

.43‌

)

–‌

(

0

.43‌

)

10

.29‌

2018

10

.52‌

0

.42‌

(

0

.46‌

)

(

0

.04‌

)

(

0

.41‌

)

(

0

.02‌

)

(

0

.43‌

)

10

.05‌

2017

10

.35‌

0

.42‌

0

.23‌

0

.65‌

(

0

.39‌

)

(

0

.09‌

)

(

0

.48‌

)

10

.52‌

Class

J

shares

2021

10

.01‌

0

.37‌

0

.37‌

0

.74‌

(

0

.43‌

)

–‌

(

0

.43‌

)

10

.32‌

2020

10

.01‌

0

.41‌

0

.04‌

0

.45‌

(

0

.45‌

)

–‌

(

0

.45‌

)

10

.01‌

2019

9

.79‌

0

.47‌

0

.26‌

0

.73‌

(

0

.51‌

)

–‌

(

0

.51‌

)

10

.01‌

2018

10

.26‌

0

.49‌

(

0

.45‌

)

0

.04‌

(

0

.49‌

)

(

0

.02‌

)

(

0

.51‌

)

9

.79‌

2017

10

.11‌

0

.49‌

0

.22‌

0

.71‌

(

0

.47‌

)

(

0

.09‌

)

(

0

.56‌

)

10

.26‌

Institutional

shares

2021

10

.24‌

0

.40‌

0

.37‌

0

.77‌

(

0

.45‌

)

–‌

(

0

.45‌

)

10

.56‌

2020

10

.23‌

0

.45‌

0

.04‌

0

.49‌

(

0

.48‌

)

–‌

(

0

.48‌

)

10

.24‌

2019

9

.99‌

0

.52‌

0

.26‌

0

.78‌

(

0

.54‌

)

–‌

(

0

.54‌

)

10

.23‌

2018

10

.46‌

0

.52‌

(

0

.46‌

)

0

.06‌

(

0

.51‌

)

(

0

.02‌

)

(

0

.53‌

)

9

.99‌

2017

10

.30‌

0

.52‌

0

.23‌

0

.75‌

(

0

.50‌

)

(

0

.09‌

)

(

0

.59‌

)

10

.46‌

R-1

shares

2021

10

.19‌

0

.32‌

0

.36‌

0

.68‌

(

0

.37‌

)

–‌

(

0

.37‌

)

10

.50‌

2020

10

.17‌

0

.36‌

0

.06‌

0

.42‌

(

0

.40‌

)

–‌

(

0

.40‌

)

10

.19‌

2019

9

.94‌

0

.44‌

0

.25‌

0

.69‌

(

0

.46‌

)

–‌

(

0

.46‌

)

10

.17‌

2018

10

.41‌

0

.44‌

(

0

.46‌

)

(

0

.02‌

)

(

0

.43‌

)

(

0

.02‌

)

(

0

.45‌

)

9

.94‌

2017

10

.25‌

0

.44‌

0

.22‌

0

.66‌

(

0

.41‌

)

(

0

.09‌

)

(

0

.50‌

)

10

.41‌

Financial

Highlights

(Continued)

Principal

Funds,

Inc.

See

accompanying

notes.

205

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

7

.32‌

%

(b)

$

971,310‌

1

.04‌

%

–‌

%

3

.62‌

%

21

.6‌

%

4

.77‌

(b)

844,525‌

1

.05‌

–‌

4

.18‌

18

.1‌

7

.80‌

(b)

732,421‌

1

.06‌

–‌

4

.96‌

19

.8‌

0

.32‌

(b)

655,225‌

1

.06‌

–‌

4

.83‌

12

.3‌

7

.31‌

(b)

732,471‌

1

.06‌

–‌

4

.81‌

16

.1‌

6

.58‌

(b)

256,799‌

1

.79‌

–‌

2

.89‌

21

.6‌

3

.95‌

(b)

365,817‌

1

.81‌

–‌

3

.44‌

18

.1‌

6

.97‌

(b)

469,674‌

1

.81‌

–‌

4

.21‌

19

.8‌

(

0

.44‌

)

(b)

631,599‌

1

.81‌

–‌

4

.08‌

12

.3‌

6

.53‌

(b)

751,561‌

1

.81‌

–‌

4

.07‌

16

.1‌

7

.50‌

(b)

42,288‌

1

.00‌

(c)

1

.02‌

(d)

3

.68‌

21

.6‌

4

.67‌

(b)

42,554‌

1

.07‌

(c)

1

.10‌

(d)

4

.17‌

18

.1‌

7

.75‌

(b)

45,660‌

1

.13‌

(c)

1

.16‌

(d)

4

.89‌

19

.8‌

0

.38‌

(b)

45,458‌

1

.02‌

(c)

1

.05‌

(d)

4

.87‌

12

.3‌

7

.37‌

(b)

51,417‌

1

.00‌

(c)

1

.03‌

(d)

4

.88‌

16

.1‌

7

.64‌

5,472,494‌

0

.79‌

(e)

–‌

3

.87‌

21

.6‌

4

.96‌

4,746,270‌

0

.81‌

(e)

–‌

4

.42‌

18

.1‌

8

.12‌

3,591,388‌

0

.81‌

(e)

–‌

5

.21‌

19

.8‌

0

.59‌

3,306,108‌

0

.80‌

(e)

–‌

5

.09‌

12

.3‌

7

.58‌

3,817,309‌

0

.77‌

(e)

–‌

5

.11‌

16

.1‌

6

.75‌

620‌

1

.57‌

–‌

3

.10‌

21

.6‌

4

.24‌

613‌

1

.58‌

–‌

3

.62‌

18

.1‌

7

.23‌

1,024‌

1

.58‌

–‌

4

.44‌

19

.8‌

(

0

.20‌

)

987‌

1

.58‌

–‌

4

.29‌

12

.3‌

6

.75‌

1,315‌

1

.58‌

–‌

4

.31‌

16

.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)

Reflects

Manager's

contractual

expense

limit

and/or

Distributor's

voluntary

distribution

fee

limit.

(d)

Excludes

expense

reimbursement

from

Manager

and/or

Distributor.

(e)

Reflects

Manager's

contractual

expense

limit.

Financial

Highlights

Principal

Funds,

Inc.

See

accompanying

notes.

206

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

August

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

SPECTRUM

PREFERRED

AND

CAPITAL

SECURITIES

INCOME

FUND

R-3

shares

2021

$

10

.16‌

$

0

.35‌

$

0

.37‌

$

0

.72‌

(

$

0

.40‌

)

$

–‌

(

$

0

.40‌

)

$

10

.48‌

2020

10

.15‌

0

.40‌

0

.04‌

0

.44‌

(

0

.43‌

)

–‌

(

0

.43‌

)

10

.16‌

2019

9

.92‌

0

.47‌

0

.25‌

0

.72‌

(

0

.49‌

)

–‌

(

0

.49‌

)

10

.15‌

2018

10

.39‌

0

.47‌

(

0

.46‌

)

0

.01‌

(

0

.46‌

)

(

0

.02‌

)

(

0

.48‌

)

9

.92‌

2017

10

.23‌

0

.47‌

0

.22‌

0

.69‌

(

0

.44‌

)

(

0

.09‌

)

(

0

.53‌

)

10

.39‌

R-4

shares

2021

10

.14‌

0

.37‌

0

.36‌

0

.73‌

(

0

.42‌

)

–‌

(

0

.42‌

)

10

.45‌

2020

10

.13‌

0

.42‌

0

.04‌

0

.46‌

(

0

.45‌

)

–‌

(

0

.45‌

)

10

.14‌

2019

9

.90‌

0

.48‌

0

.26‌

0

.74‌

(

0

.51‌

)

–‌

(

0

.51‌

)

10

.13‌

2018

10

.37‌

0

.49‌

(

0

.46‌

)

0

.03‌

(

0

.48‌

)

(

0

.02‌

)

(

0

.50‌

)

9

.90‌

2017

10

.21‌

0

.48‌

0

.23‌

0

.71‌

(

0

.46‌

)

(

0

.09‌

)

(

0

.55‌

)

10

.37‌

R-5

shares

2021

10

.19‌

0

.39‌

0

.36‌

0

.75‌

(

0

.43‌

)

–‌

(

0

.43‌

)

10

.51‌

2020

10

.18‌

0

.43‌

0

.04‌

0

.47‌

(

0

.46‌

)

–‌

(

0

.46‌

)

10

.19‌

2019

9

.95‌

0

.50‌

0

.25‌

0

.75‌

(

0

.52‌

)

–‌

(

0

.52‌

)

10

.18‌

2018

10

.42‌

0

.50‌

(

0

.45‌

)

0

.05‌

(

0

.50‌

)

(

0

.02‌

)

(

0

.52‌

)

9

.95‌

2017

10

.26‌

0

.50‌

0

.23‌

0

.73‌

(

0

.48‌

)

(

0

.09‌

)

(

0

.57‌

)

10

.42‌

R-6

shares

2021

10

.24‌

0

.41‌

0

.36‌

0

.77‌

(

0

.46‌

)

–‌

(

0

.46‌

)

10

.55‌

2020

10

.23‌

0

.46‌

0

.04‌

0

.50‌

(

0

.49‌

)

–‌

(

0

.49‌

)

10

.24‌

2019

9

.99‌

0

.53‌

0

.25‌

0

.78‌

(

0

.54‌

)

–‌

(

0

.54‌

)

10

.23‌

2018

10

.46‌

0

.53‌

(

0

.46‌

)

0

.07‌

(

0

.52‌

)

(

0

.02‌

)

(

0

.54‌

)

9

.99‌

2017(d)

9

.91‌

0

.35‌

0

.53‌

0

.88‌

(

0

.33‌

)

–‌

(

0

.33‌

)

10

.46‌

Financial

Highlights

(Continued)

Principal

Funds,

Inc.

See

accompanying

notes.

207

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

7

.20‌

%

$

2,521‌

1

.26‌

%

3

.38‌

%

21

.6‌

%

4

.49‌

1,328‌

1

.27‌

3

.98‌

18

.1‌

7

.58‌

2,101‌

1

.27‌

4

.77‌

19

.8‌

0

.11‌

2,319‌

1

.27‌

4

.62‌

12

.3‌

7

.09‌

2,676‌

1

.27‌

4

.62‌

16

.1‌

7

.31‌

834‌

1

.07‌

3

.61‌

21

.6‌

4

.71‌

1,031‌

1

.08‌

4

.16‌

18

.1‌

7

.80‌

1,397‌

1

.08‌

4

.93‌

19

.8‌

0

.31‌

1,284‌

1

.08‌

4

.82‌

12

.3‌

7

.30‌

1,304‌

1

.08‌

4

.78‌

16

.1‌

7

.51‌

4,126‌

0

.95‌

3

.72‌

21

.6‌

4

.82‌

3,526‌

0

.96‌

4

.29‌

18

.1‌

7

.89‌

3,200‌

0

.96‌

5

.05‌

19

.8‌

0

.43‌

3,023‌

0

.96‌

4

.92‌

12

.3‌

7

.40‌

3,506‌

0

.96‌

4

.92‌

16

.1‌

7

.64‌

1,706,467‌

0

.70‌

(b)

3

.97‌

21

.6‌

5

.17‌

(c)

1,518,101‌

0

.71‌

(b)

4

.52‌

18

.1‌

8

.12‌

(c)

910,863‌

0

.71‌

(b)

5

.32‌

19

.8‌

0

.69‌

1,010,227‌

0

.71‌

(b)

5

.21‌

12

.3‌

8

.98‌

(e)

520,462‌

0

.71‌

(b)

,(f)

5

.08‌

(f)

16

.1‌

(a)

Calculated

based

on

average

shares

outstanding

during

the

period.

(b)

Reflects

Manager's

contractual

expense

limit.

(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)

Period

from

2017,

date

operations

commenced,

through

(e)

Total

return

amounts

have

not

been

annualized.

(f)

Computed

on

an

annualized

basis.

Report

of

Independent

Registered

Public

Accounting

Firm

208

To

the

Shareholders

of

Blue

Chip

Fund,

Bond

Market

Index

Fund,

Diversified

Real

Asset

Fund

(consolidated),

Edge

MidCap

Fund,

Global

Multi-Strategy

Fund

(consolidated),

International

Equity

Index

Fund,

International

Small

Company

Fund,

Opportunistic

Municipal

Fund,

Origin

Emerging

Markets

Fund,

Small-MidCap

Dividend

Income

Fund,

Small-MidCap

Growth

Fund,

and

Spectrum

Preferred

and

Capital

Securities

Income

Fund

and

the

Board

of

Directors

of

Principal

Funds,

Inc.

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statements

of

assets

and

liabilities

of

Blue

Chip

Fund,

Bond

Market

Index

Fund,

Diversified

Real

Asset

Fund

(consolidated),

Edge

MidCap

Fund,

Global

Multi-Strategy

Fund

(consolidated),

International

Equity

Index

Fund,

International

Small

Company

Fund,

Opportunistic

Municipal

Fund,

Origin

Emerging

Markets

Fund,

Small-MidCap

Dividend

Income

Fund,

Small-MidCap

Growth

Fund,

and

Spectrum

Preferred

and

Capital

Securities

Income

Fund

(collectively

referred

to

as

the

“Funds”),

(12

of

the

portfolios

constituting

Principal

Funds,

Inc.

(the

“Fund”)),

including

the

schedules

of

investments,

as

of

2021,

and

the

of

operations,

cash

flows,

and

changes

in

net

assets,

and

the

financial

highlights

for

each

of

the

periods

indicated

in

the

table

below

and

the

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

each

of

the

Funds

(12

of

the

portfolios

constituting

the

Fund)

at

2021,

and

the

results

of

their

operations,

cash

flows,

changes

in

net

assets

and

financial

highlights

for

each

of

the

periods

indicated

in

the

table

below,

in

conformity

with

U.S.

generally

accepted

accounting

principles.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

each

of

the

Funds’

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(“PCAOB”)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

The

Fund

is

not

required

to

have,

nor

were

we

engaged

to

perform,

an

audit

of

the

Fund’s

internal

control

over

financial

reporting.

As

part

of

our

audits,

we

are

required

to

obtain

an

understanding

of

internal

control

over

financial

reporting

but

not

for

the

purpose

of

expressing

an

opinion

on

the

effectiveness

of

the

Fund’s

internal

control

over

financial

reporting.

Accordingly,

we

express

no

such

opinion.

Individual

portfolio

constituting

the

Fund

Statement

of

operations

Statement

of

cash

flows

Statements

of

changes

in

net

assets

Financial

highlights

Blue

Chip

Fund

Bond

Market

Index

Fund

Diversified

Real

Asset

Fund

(consolidated)

Edge

MidCap

Fund

International

Equity

Index

Fund

International

Small

Company

Fund

Opportunistic

Municipal

Fund

Origin

Emerging

Markets

Fund

Small-

MidCap

Dividend

Income

Fund

Spectrum

Preferred

and

Capital

Securities

Income

Fund

For

the

year

ended

N/A

For

each

of

the

two

years

in

the

period

ended

For

each

of

the

five

years

in

the

period

ended

Global

Multi-Strategy

Fund

(consolidated)

For

the

year

ended

For

each

of

the

two

years

in

the

period

ended

For

each

of

the

five

years

in

the

period

ended

Small-

MidCap

Growth

Fund

For

the

year

ended

N/A

For

each

of

the

two

years

in

the

period

ended

For

each

of

the

two

years

in

the

period

ended

and

the

period

from

2019,

date

operations

commenced,

through

2019

Report

of

Independent

Registered

Public

Accounting

Firm

209

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

2021,

by

correspondence

with

the

custodian,

agent

banks,

and

brokers

or

by

other

appropriate

auditing

procedures

where

replies

from

brokers

or

agent

banks

were

not

received.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

We

have

served

as

the

auditor

of

one

or

more

Principal

investment

companies

since

1969.

Minneapolis,

Minnesota

October

21,

Shareholder

Expense

Example

Principal

Funds,

Inc.

(unaudited)

210

As

a

shareholder

of

Principal

Funds,

Inc.,

you

incur

two

types

of

costs:

(1)

transaction

costs,

including

sales

charges

on

purchase

payments

and

contingent

deferred

sales

charges;

and

(2)

ongoing

costs,

including

management

fees;

distribution

fees;

and

other

fund

expenses.

This

Example

is

intended

to

help

you

understand

your

ongoing

costs

(in

dollars)

of

investing

in

Principal

Funds,

Inc.

and

to

compare

these

costs

with

the

ongoing

costs

of

investing

in

other

mutual

funds.

The

Example

is

based

on

an

investment

of

$1,000

invested

at

the

beginning

of

the

period

and

held

for

the

entire

period

(

to

),

unless

otherwise

noted.

Actual

Expenses

The

first

section

of

the

table

below

provides

information

about

actual

account

values

and

actual

expenses.

You

may

use

the

information

in

this

section,

together

with

the

amount

you

invested,

to

estimate

the

expenses

that

you

paid

over

the

period.

Simply

divide

your

account

value

by

$1,000

(for

example,

an

$8,600

account

value

divided

by

$1,000

=

8.6),

then

multiply

the

result

by

the

number

in

the

first

section

under

the

heading

entitled

“Expenses

Paid

During

Period”

to

estimate

the

expenses

you

paid

on

your

account

during

this

period.

R-1,

R-3,

R-4,

and

R-5

classes

of

shares

may

be

purchased

only

through

retirement

plans.

Such

plans

may

impose

fees

in

addition

to

those

charged

by

the

fund.

These

fees

are

not

included

in

the

table

below.

If

they

were,

the

estimate

of

expenses

you

paid

during

the

period

would

be

higher,

and

your

ending

account

value

lower,

by

this

amount.

Hypothetical

Example

for

Comparison

Purposes

The

second

section

of

the

table

below

provides

information

about

hypothetical

account

values

and

hypothetical

expenses

based

on

each

fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

fund’s

actual

return.

The

hypothetical

account

values

and

expenses

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period.

You

may

use

this

information

to

compare

the

ongoing

costs

of

investing

in

Principal

Funds,

Inc.

and

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

the

other

funds.

Please

note

that

the

expenses

shown

in

the

table

are

meant

to

highlight

your

ongoing

costs

only

and

do

not

reflect

any

transaction

costs,

such

as

sales

charges

on

purchase

payments,

contingent

deferred

sales

charges,

redemption

fees

or

exchange

fees.

Therefore,

the

second

section

of

the

table

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

determine

the

relative

total

costs

of

owning

different

funds.

In

addition,

if

these

transaction

costs

were

included,

your

costs

would

have

been

higher.

Actual

Hypothetical

Beginning

Account

Value

Ending

Account

Value

Expenses

Paid

During Period

2021 to

(a)

Beginning

Account

Value

Ending

Account

Value

2021

Expenses

Paid

During Period

2021 to

(a)

Annualized

Expense

Ratio

Blue

Chip

Fund

Class

A

$

1,000.00‌

$

1,249.71‌

$

5.22‌

$

1,000.00‌

$

1,020.57‌

$

4.69‌

0.92‌

%

Class

C

1,000.00‌

1,245.24‌

9.39‌

1,000.00‌

1,016.84‌

8.44‌

1.66‌

Class

J

1,000.00‌

1,250.87‌

4.31‌

1,000.00‌

1,021.37‌

3.87‌

0.76‌

Institutional

1,000.00‌

1,251.37‌

3.75‌

1,000.00‌

1,021.88‌

3.36‌

0.66‌

R-3

1,000.00‌

1,248.46‌

6.35‌

1,000.00‌

1,019.56‌

5.70‌

1.12‌

R-4

1,000.00‌

1,249.71‌

5.27‌

1,000.00‌

1,020.52‌

4.74‌

0.93‌

R-5

1,000.00‌

1,250.36‌

4.59‌

1,000.00‌

1,021.12‌

4.13‌

0.81‌

R-6

1,000.00‌

1,252.15‌

3.12‌

1,000.00‌

1,022.43‌

2.80‌

0.55‌

Bond

Market

Index

Fund

Class

J

1,000.00‌

1,017.49‌

2.08‌

1,000.00‌

1,023.14‌

2.09‌

0.41‌

Institutional

1,000.00‌

1,018.11‌

0.71‌

1,000.00‌

1,024.50‌

0.71‌

0.14‌

R-1

1,000.00‌

1,013.32‌

5.13‌

1,000.00‌

1,020.11‌

5.14‌

1.01‌

R-3

1,000.00‌

1,014.40‌

3.55‌

1,000.00‌

1,021.68‌

3.57‌

0.70‌

R-4

1,000.00‌

1,016.31‌

2.59‌

1,000.00‌

1,022.63‌

2.60‌

0.51‌

R-5

1,000.00‌

1,016.36‌

1.98‌

1,000.00‌

1,023.24‌

1.99‌

0.39‌

Diversified

Real

Asset

Fund

Class

A

1,000.00‌

1,098.21‌

6.35‌

1,000.00‌

1,019.16‌

6.11‌

1.20‌

Institutional

1,000.00‌

1,100.81‌

4.40‌

1,000.00‌

1,021.02‌

4.23‌

0.83‌

R-3

1,000.00‌

1,097.22‌

7.03‌

1,000.00‌

1,018.50‌

6.77‌

1.33‌

R-4

1,000.00‌

1,097.56‌

6.03‌

1,000.00‌

1,019.46‌

5.80‌

1.14‌

R-5

1,000.00‌

1,099.27‌

5.40‌

1,000.00‌

1,020.06‌

5.19‌

1.02‌

R-6

1,000.00‌

1,100.00‌

4.08‌

1,000.00‌

1,021.32‌

3.92‌

0.77‌

Shareholder

Expense

Example

Principal

Funds,

Inc.

(unaudited)

211

Actual

Hypothetical

Beginning

Account

Value

Ending

Account

Value

Expenses

Paid

During Period

2021 to

(a)

Beginning

Account

Value

Ending

Account

Value

2021

Expenses

Paid

During Period

2021 to

(a)

Annualized

Expense

Ratio

Edge

MidCap

Fund

Class

A

$

1,000.00‌

$

1,144.53‌

$

5.95‌

$

1,000.00‌

$

1,019.66‌

$

5.60‌

1.10‌

%

Institutional

1,000.00‌

1,147.15‌

4.17‌

1,000.00‌

1,021.32‌

3.92‌

0.77‌

R-6

1,000.00‌

1,147.22‌

3.52‌

1,000.00‌

1,021.93‌

3.31‌

0.65‌

Global

Multi-Strategy

Fund

Class

A

1,000.00‌

1,044.37‌

13.04‌

1,000.00‌

1,012.45‌

12.83‌

2.53‌

Institutional

1,000.00‌

1,047.29‌

10.53‌

1,000.00‌

1,014.92‌

10.36‌

2.04‌

R-6

1,000.00‌

1,047.29‌

10.27‌

1,000.00‌

1,015.17‌

10.11‌

1.99‌

Global

Multi-Strategy

Fund

(Excluding

Dividend

and

Interest

Expense

on

Shorts

and

Short

Sale

Fees

and

Reverse

Repurchase

Agreement

Expense)

Class

A

1,000.00‌

1,044.37‌

10.87‌

1,000.00‌

1,014.57‌

10.71‌

2.11‌

Institutional

1,000.00‌

1,047.29‌

8.41‌

1,000.00‌

1,016.99‌

8.29‌

1.63‌

R-6

1,000.00‌

1,047.29‌

8.15‌

1,000.00‌

1,017.24‌

8.03‌

1.58‌

International

Equity

Index

Fund

Institutional

1,000.00‌

1,102.31‌

1.64‌

1,000.00‌

1,023.64‌

1.58‌

0.31‌

R-1

1,000.00‌

1,098.17‌

6.29‌

1,000.00‌

1,019.21‌

6.06‌

1.19‌

R-3

1,000.00‌

1,099.73‌

4.66‌

1,000.00‌

1,020.77‌

4.48‌

0.88‌

R-4

1,000.00‌

1,100.45‌

3.65‌

1,000.00‌

1,021.73‌

3.52‌

0.69‌

R-5

1,000.00‌

1,101.07‌

3.02‌

1,000.00‌

1,022.33‌

2.91‌

0.57‌

R-6

1,000.00‌

1,103.20‌

1.54‌

1,000.00‌

1,023.74‌

1.48‌

0.29‌

International

Small

Company

Fund

Institutional

1,000.00‌

1,121.57‌

6.47‌

1,000.00‌

1,019.11‌

6.16‌

1.21‌

R-6

1,000.00‌

1,122.62‌

5.78‌

1,000.00‌

1,019.76‌

5.50‌

1.08‌

Opportunistic

Municipal

Fund

Class

A

1,000.00‌

1,061.63‌

4.52‌

1,000.00‌

1,020.82‌

4.43‌

0.87‌

Institutional

1,000.00‌

1,064.02‌

3.07‌

1,000.00‌

1,022.23‌

3.01‌

0.59‌

Opportunistic

Municipal

Fund

(Excluding

Interest

Expense

and

Fees)

Class

A

1,000.00‌

1,061.63‌

4.37‌

1,000.00‌

1,020.97‌

4.28‌

0.84‌

Institutional

1,000.00‌

1,064.02‌

2.91‌

1,000.00‌

1,022.38‌

2.85‌

0.56‌

Origin

Emerging

Markets

Fund

Class

A

1,000.00‌

967.87‌

7.94‌

1,000.00‌

1,017.14‌

8.13‌

1.60‌

Institutional

1,000.00‌

969.42‌

6.21‌

1,000.00‌

1,018.90‌

6.36‌

1.25‌

R-6

1,000.00‌

970.83‌

5.22‌

1,000.00‌

1,019.91‌

5.35‌

1.05‌

Small-MidCap

Dividend

Income

Fund

Class

A

1,000.00‌

1,122.50‌

5.99‌

1,000.00‌

1,019.56‌

5.70‌

1.12‌

Class

C

1,000.00‌

1,119.02‌

9.99‌

1,000.00‌

1,015.78‌

9.50‌

1.87‌

Institutional

1,000.00‌

1,124.33‌

4.55‌

1,000.00‌

1,020.92‌

4.33‌

0.85‌

R-6

1,000.00‌

1,124.82‌

4.23‌

1,000.00‌

1,021.22‌

4.02‌

0.79‌

Small-MidCap

Growth

Fund

Institutional

1,000.00‌

995.84‌

4.18‌

1,000.00‌

1,021.02‌

4.23‌

0.83‌

Spectrum

Preferred

and

Capital

Securities

Income

Fund

Class

A

1,000.00‌

1,037.47‌

5.39‌

1,000.00‌

1,019.91‌

5.35‌

1.05‌

Class

C

1,000.00‌

1,034.37‌

9.13‌

1,000.00‌

1,016.23‌

9.05‌

1.78‌

Class

J

1,000.00‌

1,039.27‌

4.78‌

1,000.00‌

1,020.52‌

4.74‌

0.93‌

Institutional

1,000.00‌

1,039.05‌

4.11‌

1,000.00‌

1,021.17‌

4.08‌

0.80‌

R-1

1,000.00‌

1,035.26‌

8.05‌

1,000.00‌

1,017.29‌

7.98‌

1.57‌

R-3

1,000.00‌

1,036.94‌

6.47‌

1,000.00‌

1,018.85‌

6.41‌

1.26‌

R-4

1,000.00‌

1,038.02‌

5.50‌

1,000.00‌

1,019.81‌

5.45‌

1.07‌

R-5

1,000.00‌

1,038.45‌

4.88‌

1,000.00‌

1,020.42‌

4.84‌

0.95‌

R-6

1,000.00‌

1,039.63‌

3.55‌

1,000.00‌

1,021.73‌

3.52‌

0.69‌

(a)

Expenses

are

equal

to

a

fund's

annualized

expense

ratio

multiplied

by

the

average

account

value

over

the

period,

multiplied

by

184/365

(to

reflect

the

one-half

year

period).

Principal

Funds,

Inc.

(unaudited)

212

Notification

of

Source

of

Distributions

Pursuant

to

Rule

19a-1

of

the

Investment

Company

Act

of

1940

As

noted

in

the

table

provided

below,

certain

of

the

Principal

Funds

made

distributions

for

the

month

of

September

2021

for

which

a

portion

is

estimated

to

be

in

excess

of

the

Fund’s

current

and

accumulated

net

income.

As

of

September

2021,

the

estimated

sources

of

these

distributions

were

as

follows:

The

ultimate

composition

of

these

distributions

may

vary

from

the

estimates

provided

above

due

to

a

variety

of

factors

including

future

income

and

expenses,

and

realized

gains

and

losses

from

the

purchase

and

sale

of

securities.

Please

note

that

this

information

is

being

provided

to

satisfy

certain

notice

requirements

under

the

Investment

Company

Act

of

1940.

Tax

reporting

information

for

shareholders

of

the

Funds

will

not

be

available

until

the

end

of

the

Funds’

fiscal

year.

As

a

result,

shareholders

should

not

use

the

information

provided

in

this

notice

for

tax

reporting

purposes.

Notices

are

posted

monthly

on

our

at

principalfunds.com/sources-of-distribution

.

You

may

also

request

a

copy

of

such

notices,

free

of

charge,

by

telephoning

800-222-5852.

This

material

is

not

authorized

for

distribution

unless

preceded

or

accompanied

by

a

current

prospectus

that

includes

more

information

regarding

the

risk

factors,

expenses,

policies,

and

objectives

of

the

investment.

Contact

your

financial

professional

or

call

800-222-5852

to

obtain

another

copy

of

the

prospectus.

Read

the

prospectus

carefully

before

investing.

A

mutual

fund's

share

price

and

investment

return

will

vary

with

market

conditions,

and

the

principal

value

of

an

investment

when

you

sell

your

shares

may

be

more

or

less

than

the

original

cost.

Principal

Funds

are

distributed

by

Principal

Funds

Distributor,

Inc.

September

2021

Fund

Net

Income

Realized

Gain

Capital

Sources

Diversified

Real

Asset

Fund

98.64%

0.00%

1.36%

213

FUND

BOARD

OF

DIRECTORS

AND

OFFICERS

The

Board

of

Directors

(the

“Board”)

has

overall

responsibility

for

overseeing

the

Fund’s

operations

in

accordance

with

the

Investment

Act

of

1940,

as

amended

(the

“1940

Act”),

other

applicable

laws,

and

the

Fund’s

charter.

Each

member

of

the

Board

(“Board

Member”)

serves

on

the

Board

of

the

following

investment

companies

sponsored

by

Principal

Life

Insurance

Company:

Principal

Funds,

Inc.,

Principal

Variable

Funds,

Inc.,

Principal

Exchange-Traded

Funds,

and

Principal

Diversified

Select

Real

Asset

Fund

which

are

collectively

referred

to

as

the

“Fund

Complex”.

Board

Members

that

are

affiliated

persons

of

any

investment

advisor,

the

principal

distributor,

or

the

principal

underwriter

of

the

Fund

Complex

are

considered

“interested

persons”

of

the

Fund

(as

defined

in

the

1940

Act)

and

are

shown

below

as

“Interested

Board

Members”.

Board

Members

who

are

not

Interested

Board

Members

are

shown

below

as

“Independent

Board

Members”.

Each

Board

Member

generally

serves

until

the

meeting

of

stockholders

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.

Officers

serve

at

the

pleasure

of

the

Board,

and

each

officer

has

the

same

position

with

each

investment

company

in

the

Fund

Complex.

INDEPENDENT

BOARD

MEMBERS

Name,

Position

Held

with

the

Fund

Complex,

Year

of

Birth

Principal

Occupation(s)

During

past

5

years

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Director

Other

Directorships

Held

by

Director

During

Past

5

Years

Elizabeth

Ballantine

Director

since

2004

Chair,

Nominating

and

Governance

Committee

1948

Principal,

EBA

Associates

126

Durango

Herald,

Inc.;

McClatchy

Newspapers,

Inc.

Leroy

T.

Barnes,

Jr.

Director

since

2012

Member,

Audit

Committee

Member,

Nominating

and

Governance

Committee

1951

Retired

126

McClatchy

Newspapers,

Inc.;

Frontier

Communications,

Inc.;

formerly,

Herbalife

Ltd.

Craig

Damos

Lead

Independent

Director

since

2020

Director

since

2008

Member,

Nominating

and

Governance

Committee

Member,

Executive

Committee

1954

President,

C.P.

Damos

Consulting

LLC

126

None

Fritz

S.

Hirsch

Director

since

2005

Member,

Operations

Committee

Chair,

15(c)

Committee

1951

Interim

CEO,

MAM

USA:

February

2020

to

October

2020

126

MAM

USA

Victor

Hymes

Director

since

2020

Member,

Audit

Committee

1957

Founder

and

Managing

Member

of

Legato

Capital

Management,

LLC

126

Formerly,

Montgomery

Street

Income

Securities

Inc.

John

D.

Kenney

Director

since

2020

Member,

Operations

Committee

Member,

15(c)

Committee

1965

Formerly,

Legg

Mason

Global

Asset

Management

126

Formerly:

Legg

Mason

Investment

Management

Affiliates:

Brandywine

Global;

Clarion

Partners;

ClearBridge

Investments;

Entrust

Global;

Legg

Mason

Poland;

Martin

Currie

Investment

Management;

Permal

Group

(merged

into

Entrust);

QS

Investors;

RARE

Infrastructure;

Royce

and

Associates;

and

Western

Asset

Management

Padelford

(“Padel”)

L.

Lattimer

Director

since

2020

Member,

Operations

Committee

Member,

15(c)

Committee

1961

TBA

Management

Consulting

LLC

126

None

Karen

(“Karrie”)

McMillan

Director

since

2014

Chair,

Operations

Committee

1961

Founder/Owner,

Tyche

Consulting

LLC

Formerly,

Managing

Director,

Patomak

Global

Partners,

LLC

126

None

214

INTERESTED

BOARD

MEMBERS

Correspondence

intended

for

each

Board

Member

who

is

other

than

an

Interested

Board

Member

may

be

sent

to

655

9th

Street,

Des

Moines,

IA

Name,

Position

Held

with

the

Fund

Complex,

Year

of

Birth

Principal

Occupation(s)

During

past

5

years

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Director

Other

Directorships

Held

by

Director

During

Past

5

Years

Elizabeth

A.

Nickels

Director

since

2015

Chair,

Audit

Committee

Member,

Nominating

and

Governance

Committee

1962

Retired

126

SpartanNash;

Formerly:

Charlotte

Russe;

Follet

Corporation;

PetSmart;

Spectrum

Health

Systems

Mary

M.

(“Meg”)

VanDeWeghe

Director

since

2018

Member,

Audit

Committee

Member,

15(c)

Committee

1959

CEO

and

President,

Forte

Consulting,

Inc.

126

Helmerich

&

Payne;

Formerly:

B/E

Aerospace;

Brown

Advisory;

Denbury

Resources

Inc.;

Nalco

(and

its

successor

Ecolab);

and

WP

Carey

Name,

Position

Held

with

the

Fund

Complex,

Year

of

Birth

Principal

Occupation(s)

During

past

5

years

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Director

Other

Directorships

Held

by

Director

During

Past

5

Years

Timothy

M.

Dunbar

Chair

and

Director

since

2019

Chair,

Executive

Committee

1957

President-Principal

Global

Asset

Management

(“PGAM”),

Principal

Global

Investors,

LLC

(“PGI”)

since

2018

Director,

PGI

(2018-2020)

Division

President,

Principal

Financial

Services,

Inc.

(“PFSI)

and

Principal

Life

Insurance

Company

(“PLIC”)

(2020–2021)

Executive

Vice

President

and

Chief

Investment

Officer,

PFSI

and

PLIC

(2014-2018)

President

–

PGAM,

PFSI

and

PLIC

(2018-2020)

Director,

Post

Advisory

Group,

LLC

(“Post”)

(2018-

2020)

Chair

and

Executive

Vice

President,

RobustWealth,

Inc.

(2018-2020)

126

None

Patrick

G.

Halter

Member,

Executive

Committee

Director

since

2017

1959

Chair,

PGI

since

2018

Chief

Executive

Officer

and

President,

PGI

since

2018

Chief

Operating

Officer,

PGI

(2017-2018)

Director,

PGI

(2003-2018)

Director,

Origin

Asset

Management

LLP

(2018-

2019)

President,

PGAM,

PFSI,

and

PLIC

since

2020

Director,

Post

since

2017

Chair,

Principal

Real

Estate

Investors,

LLC

(“PREI”)

since

2004

President

and

Chief

Executive

Officer,

PGI,

PREI

since

2018

Chief

Executive

Officer,

PREI

(2005-2018)

Chair,

Spectrum

Asset

Management,

Inc.

(“Spectrum”)

since

2017

126

None

215

FUND

COMPLEX

OFFICERS

Name,

Position

Held

with

the

Fund

Complex,

Address,

and

Year

of

Birth

Principal

Occupation(s)

During

past

5

years

Kamal

Bhatia

President

and

Chief

Executive

Officer

Des

Moines,

IA

1972

Director,

PGI

since

2019

President-Principal

Funds,

PGI

since

2019

Principal

Executive

Officer,

OPC

Private

Capital

(2017-2019)

Senior

Vice

President,

OppenheimerFunds

(2011-

2019)

Director,

Principal

Funds

Distributor,

Inc.

(“PFD”)

since

2019

Senior

Executive

Director

and

Chief

Operating

Officer,

PFSI

and

PLIC

since

2020

President,

PFSI

and

PLIC

(2019-2020)

Director,

Post

since

2020

Director,

PREI

since

2020

Chair

and

Executive

Vice

President,

(Principal

Shareholder

Services,

Inc.

(“PSS’)

since

2019

Randy

D.

Bolin

Assistant

Tax

Counsel

Des

Moines,

IA

1961

Vice

President

and

Associate

General

Counsel,

PGI

since

2016

Vice

President

and

Associate

General

Counsel,

PFSI

since

2013

Vice

President

and

Associate

General

Counsel,

PLIC

since

2013

Beth

Graff

Vice

President

and

Assistant

Controller

Des

Moines,

IA

1968

Director

–

Fund

Accounting

since

2016

Gina

L.

Graham

Treasurer

Des

Moines,

IA

1965

Vice

President

and

Treasurer,

PGI

since

2016

Vice

President

and

Treasurer,

PFD

since

2016

Vice

President

and

Treasurer,

PFSI

since

2016

Vice

President

and

Treasurer,

PLIC

since

2016

Vice

President

and

Treasurer,

PREI

since

2017

Vice

President

and

Treasurer,

Principal

Securities,

Inc.

(“PSI”)

since

2016

Vice

President

and

Treasurer,

PSS

since

2016

Vice

President

and

Treasurer,

RobustWealth,

Inc.

since

2018

Megan

Hoffmann

Vice

President

and

Controller

Des

Moines,

IA

1979

Director

–

Accounting,

PLIC

since

2020

Assistant

Director

–

Accounting,

PLIC

(2017-2020)

Prior

thereto,

Senior

Accounting

Analyst,

PLIC

Laura

B.

Latham

Assistant

Counsel

and

Assistant

Secretary

Des

Moines,

IA

1986

Counsel,

PGI

since

2018

Counsel,

PLIC

since

2018

Prior

thereto,

Attorney

in

Private

Practice

Diane

K.

Nelson

AML

Officer

Des

Moines,

IA

1965

Chief

Compliance

Officer/AML

Officer,

PSS

since

2015

Tara

Parks

Vice

President

and

Assistant

Controller

Des

Moines,

IA

1983

Director

–

Accounting,

PLIC

since

2019

Tax

Manager

–

ALPS

Fund

Services

(2011-2019)

Sara

L.

Reece

Vice

President

and

Chief

Operating

Officer

Des

Moines,

IA

1975

Vice

President

and

Controller

(2016-2021)

Managing

Director

–

Global

Funds

Ops,

PLIC

since

2021

Managing

Director

–

Financial

Analysis/

Planning,

PLIC

(2021)

Director

-

Accounting,

PLIC

(2015-2021)

216

Name,

Position

Held

with

the

Fund

Complex,

Address,

and

Year

of

Birth

Principal

Occupation(s)

During

past

5

years

Teri

R.

Root

Chief

Compliance

Officer

Des

Moines,

IA

1979

Chief

Compliance

Officer

–

Funds,

PGI

since

2018

Interim

Chief

Compliance

Officer

(2018)

Deputy

Chief

Compliance

Officer,

PGI

(2015-2018)

Vice

President

and

Chief

Compliance

Officer,

PMC

(2015–2017)

Vice

President,

PSS

since

2015

Michael

Scholten

Chief

Financial

Officer

Secretary

Des

Moines,

IA

1979

Chief

Financial

Officer

–

PFD

since

2016

Assistant

Vice

President

and

Actuary,

PLIC

since

2021

Chief

Financial

Officer

–

Funds/Platforms,

PLIC

since

2015

Chief

Financial

Officer,

PSS

since

2015

Britney

L.

Schnathorst

Assistant

Counsel

and

Assistant

Secretary

Des

Moines,

IA

1981

Counsel,

PGI

since

2018

Counsel,

PLIC

since

2013

Adam

U.

Shaikh

Assistant

Counsel

Des

Moines,

IA

1972

Assistant

General

Counsel,

PGI

since

2018

Counsel,

PGI

(2017-2018)

Counsel,

PLIC

since

2006

Counsel,

PMC

(2007-2017)

John

L.

Sullivan

Assistant

Counsel

and

Assistant

Secretary

Des

Moines,

IA

1970

Counsel,

PGI

since

2020

Counsel,

PLIC

since

2019

Prior

thereto,

Attorney

in

Private

Practice

Dan

L.

Westholm

Assistant

Treasurer

Des

Moines,

IA

1966

Assistant

Vice

President

and

Treasurer,

PGI

since

2013

Assistant

Vice

President-Treasury,

PFD

since

2013

Assistant

Vice

President-Treasury,

PLIC

since

2014

Assistant

Vice

President-Treasury,

PSI

since

2013

Assistant

Vice

President-Treasury,

PSS

since

2013

Beth

C.

Wilson

Vice

President

and

Secretary

Des

Moines,

IA

1956

Director

and

Secretary

–

Funds,

PLIC

since

2007

Clint

L.

Woods

Vice

President,

Counsel

and

Assistant

Secretary

Des

Moines,

IA

1961

Of

Counsel

(2017-2018)

Vice

President

(2016-2017)

Counsel

(2015-2017)

Vice

President,

Associate

General

Counsel

and

Secretary,

PGI

since

2020

Vice

President,

Associate

General

Counsel,

Governance

Officer,

and

Assistant

Corporate

Secretary,

PGI

(2018-2020)

Vice

President,

Associate

General

Counsel

and

Assistant

Corporate

Secretary,

PFD

since

2019

Vice

President,

Associate

General

Counsel,

Governance

Officer

and

Assistant

Corporate

Secretary,

PFSI

since

2019

Vice

President,

Associate

General

Counsel,

Governance

Officer

and

Assistant

Corporate

Secretary,

PLIC

since

2015

Secretary,

Post

since

2020

Vice

President,

Associate

General

Counsel,

Governance

Officer

and

Secretary,

PREI

since

2020

Vice

President,

Associate

General

Counsel,

Governance

Officer

and

Assistant

Corporate

Secretary,

PREI

(2020)

Vice

President,

Associate

General

Counsel

and

Assistant

Corporate

Secretary,

PSI

since

2019

Vice

President,

Associate

General

Counsel

and

Assistant

Corporate

Secretary,

PSS

since

2019

Vice

President,

Associate

General

Counsel

and

Assistant

Secretary,

RobustWealth,

Inc.

since

2019

Secretary,

Spectrum

since

2020

217

The

15(c)

Committee’s

primary

purpose

is

to

assist

the

Board

in

performing

the

annual

review

of

the

Fund’s

advisory

and

sub-advisory

agreements

pursuant

to

Section

15(c)

of

the

1940

Act.

The

Committee

responsibilities

include

requesting

and

reviewing

The

Audit

Committee’s

primary

purpose

is

to

assist

the

Board

by

serving

as

an

independent

and

objective

party

to

monitor

the

Fund

Complex’s

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

Fund

Complex’s

financial

statements;

2)

the

Fund

Complex’s

compliance

with

certain

legal

and

regulatory

requirements;

3)

the

independent

registered

public

accountants’

qualifications

and

independence;

and

4)

the

performance

of

the

Fund

Complex’s

independent

registered

public

accountants.

The

Audit

Committee

also

provides

an

open

avenue

of

communication

among

the

independent

registered

public

accountants,

the

Manager’s

internal

auditors,

Fund

Complex

management,

and

the

Board.

The

Executive

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

Fund

Complex's

business

except

the

power

to

1)

issue

stock,

except

as

permitted

by

law;

2)

recommend

to

the

stockholders

any

action

which

requires

stockholder

approval;

3)

amend

the

bylaws;

or

4)

approve

any

merger

or

share

exchange

which

does

not

require

stockholder

approval.

The

Nominating

and

Governance

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

Fund

Complex.

Recommendations

should

be

submitted

in

writing

to

the

Principal

Funds

Complex

Secretary,

in

care

of

the

Principal

Funds

Complex,

711

High

Street,

Des

Moines,

IA

https://www.principalglobal.com/documentdownload/160950.

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

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

Fund

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.

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

Fund

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

Committee

meets

with

nominees

and

conducts

a

reference

check.

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.

The

Operations

Committee’s

primary

purpose

is

to

oversee

the

provision

of

administrative

and

distribution

services

to

the

Funds

Complex,

communications

with

the

Fund

Complex’s

shareholders,

and

review

and

oversight

of

the

Fund

Complex’s

operations.

Additional

information

about

the

Fund

is

available

in

the

Prospectus

dated

and

as

supplemented,

and

the

Statement

of

Additional

Information

dated

and

as

supplemented.

These

documents

may

be

obtained

free

of

charge

by

writing

Principal

Funds,

Inc.,

P.O.

Box

8024,

Boston,

MA

02266-8024

or

telephoning

1-800-222-5852.

The

prospectus

may

be

viewed

at

www.

PrincipalFunds.com/prospectuses.

Name,

Position

Held

with

the

Fund

Complex,

Address,

and

Year

of

Birth

Principal

Occupation(s)

During

past

5

years

Jared

A.

Yepsen

Assistant

Tax

Counsel

Des

Moines,

IA

1981

Counsel,

PGI

(2017-2019)

Counsel,

PLIC

since

2015

218

PROXY

VOTING

POLICIES

A

description

of

the

policies

and

procedures

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities

and

the

results

of

the

proxy

votes

for

the

most

recent

twelve

months

ended

June

30

may

be

obtained

free

of

charge

by

telephoning

1-800-222-5852,

or

on

the

SEC

at

www.sec.gov.

SCHEDULES

OF

INVESTMENTS

The

Fund

files

complete

schedules

of

investments

with

the

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

of

each

fiscal

year

as

an

exhibit

to

its

reports

on

Form

N-PORT.

The

Fund’s

Form

N-PORT

reports

are available

on the

Commission’s

at

www.

sec.gov and

www.PrincipalFunds.com.

STATEMENT

REGARDING

LIQUIDITY

RISK

MANAGEMENT

PROGRAM

The

Board

of

Directors

of

Principal

Funds,

Inc.

(the

“Board”)

met

on

9,

to

review

the

liquidity

risk

management

program

(the

“Program”)

applicable

to

all

series

of

the

Principal

Funds,

Inc.,

excluding

the

money

market

funds

(each,

a

“Fund”),

pursuant

to

Rule

22e-

4

under

the

Investment

Company

Act

of

1940,

as

amended

(the

“Liquidity

Rule”)

for

the

period

from

through

(the

“Reporting

Period”).

At

the

meeting,

the

committee

designated

by

the

Board

to

administer

the

Program,

the

Liquidity

Risk

Management

Committee

(the

“Committee”),

addressed

the

operation,

adequacy

and

effectiveness

of

the

Program,

the

operation

of

each

Fund’s

highly

liquid

investment

minimum,

where

applicable,

and

any

material

changes

made

to

the

Program

during

the

Reporting

Period.

The

Committee

noted

key

factors

it

considered

when

assessing,

managing

and

reviewing

each

Fund’s

liquidity

risk.

Such

factors

included

each

Fund’s

investment

strategy

and

liquidity

of

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions,

including

(a) whether

the

Fund’s

investment

strategy

is

appropriate

for

an

open-end

fund,

(b)

the

extent

to

which

the

strategy

involves

a

relatively

concentrated

portfolio

or

large

positions

in

particular

issuers,

and

(c)

the

use

of

borrowings

for

investment

purposes

and

use

of

leveraged

derivatives

and

financial

commitment

obligations;

short-term

and

long-term

cash

flow

projections

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

holdings

of

cash

and

cash

equivalents,

as

well

as

borrowing

arrangements

and

other

funding

sources;

and

each

Fund’s

shareholder

ownership

concentration.

There

were

no

material

changes

to

the

Program

during

the

Reporting

Period.

The

Committee

concluded,

based

on

the

operation

of

the

functions

as

described

in

the

Report

that

the

Program

is

operating

as

intended

and

is

effective

in

implementing

the

requirements

of

the

Liquidity

Rule.

219

BOARD

CONSIDERATION

OF

INVESTMENT

ADVISORY

CONTRACTS

During

the

period

covered

by

this

report,

the

Board

of

Directors

of

Principal

Funds,

Inc.

(“PFI”)

approved:

(1)

a

new

subadvisory

agreement

between

Principal

Global

Investors,

LLC

(“PGI”

or

the

“Manager”)

and

Westchester

Capital

Management,

LLC

with

respect

to

the

event-

driven

investment

sleeve

for

the

Global

Multi-Strategy

Fund;

(2)

a

new

subadvisory

agreement

between

the

Manager

and

Westchester

Capital

Management,

LLC

with

respect

to

the

event-drive

investment

sleeve

for

the

Global

Multi-Strategy

Fund

in

regards

to

a

change

in

control;

and

(3)

an

amended

management

agreement

between

the

Manager

and

PFI

for

the

Origin

Emerging

Markets

Fund.

Westchester

Capital

Management,

LLC

Subadvisory

Agreement

–

Global

Multi-Strategy

Fund

On

29,

2021,

the

Board

considered

whether

to

approve

a

new

sub-advisory

agreement

(the

“Subadvisory

Agreement”)

between

the

Manager

and

Westchester

Capital

Management,

LLC

(the

“Subadvisor”)

with

respect

to

the

event-driven

investment

sleeve

of

the

Fund.

The

Board

considered

various

factors,

including

the

following,

and

made

certain

findings

and

conclusions

with

regard

thereto,

in

approving

the

Subadvisory

Agreement.

Nature,

Quality

and

Extent

of

Services.

The

Board

considered

the

nature,

quality

and

extent

of

the

services

expected

to

be

provided

under

the

Subadvisory

Agreement.

The

Board

considered

the

reputation,

qualifications

and

background

of

the

Subadvisor,

the

investment

approach

of

the

Subadvisor,

the

experience

and

skills

of

the

Subadvisor’s

investment

personnel

who

would

be

responsible

for

the

day-to-day

management

of

the

Fund

and

the

resources

made

available

to

such

personnel.

The

Board

considered

the

Manager’s

program

for

recommending,

monitoring

and

replacing

subadvisors

and

that

the

Manager

recommended

the

Subadvisor

based

upon

that

program.

Investment

Performance.

The

Board

reviewed

the

historical

one-year,

three-year,

five-year,

ten-year

and

since

inception

(March

2009)

performance

returns,

gross

and

net

of

proposed

fees,

as

of

of

the

Subadvisor

in

the

proposed

investment

strategy

for

the

event-driven

investment

sleeve

of

the

Fund

that

the

Subadvisor

is

proposed

to

manage,

as

compared

to

the

historical

performance

returns

of

a

relevant

benchmark

index

for

the

sleeve,

the

Fund’s

prospectus

benchmark

index

and

a

relevant

Morningstar

category.

The

Board

concluded,

based

upon

the

information

provided,

that

the

Subadvisor

is

qualified.

Fees,

Economies

of

Scale

and

Profitability.

The

Board

considered

the

proposed

subadvisory

fee,

noting

that

the

Manager

compensates

subadvisors

from

its

own

management

fee

so

that

shareholders

pay

only

the

management

fee.

The

Board

considered

whether

there

are

economies

of

scale

with

respect

to

the

subadvisory

services

to

be

provided

to

the

Fund

under

the

Subadvisory

Agreement.

The

Board

concluded

that,

although

the

proposed

subadvisory

fee

schedule

does

not

include

breakpoints,

the

Subadvisor’s

fee

schedule

is

appropriate

at

currently

anticipated

asset

levels.

The

Board

considered

the

Manager’s

statement

that

it

found

the

proposed

subadvisory

fee

schedule

to

be

competitive.

On

the

basis

of

the

information

provided,

the

Board

concluded

that

the

proposed

subadvisory

fee

was

reasonable.

Other

Benefits.

The

Board

also

considered

the

character

and

amount

of

other

fall-out

benefits

to

be

received

by

the

Subadvisor.

The

Board

noted

the

Subadvisor’s

statement

that

it

intends

to

use

Fund

commissions

to

buy

Section

28(e)

eligible

products

and

services.

The

Board

further

noted

the

Manager’s

statement

that

there

would

be

no

known

fall-out

benefits

other

than

soft

dollars.

Overall

Conclusions.

Based

upon

all

of

the

information

considered

and

the

conclusions

reached,

the

Board

determined

that

the

terms

of

the

Subadvisory

Agreement

are

fair

and

reasonable

and

that

approval

of

the

Subadvisory

Agreement

is

in

the

best

interests

of

the

Fund.

Westchester

Capital

Management,

LLC

Subadvisory

Agreement

–

Global

Multi-Strategy

Fund

On

29,

2021,

the

Board

considered

whether

to

approve

a

new

subadvisory

agreement

(the

“New

Subadvisory

Agreement”)

between

the

Manager

and

Westchester

Capital

Management,

LLC

(the

“Subadvisor”)

with

respect

to

the

event-driven

investment

sleeve

of

the

Fund.

The

New

Subadvisory

Agreement

was

proposed

in

light

of

an

anticipated

change

in

control

transaction

with

respect

to

the

Subadvisor

that

is

expected

to

be

effective

in

the

second

half

of

2021.

This

transaction,

if

completed,

would

result

in

the

“assignment”

(as

defined

in

the

Investment

Company

Act

of

1940)

of

the

current

subadvisory

agreement

between

the

Manager

and

the

Subadvisor

(the

“Current

Subadvisory

Agreement”),

causing

the

Current

Subadvisory

Agreement

to

terminate

automatically.

The

Manager

proposed

that

the

Board

approve

the

New

Subadvisory

Agreement

to

take

effect

upon

the

termination

of

the

Current

Subadvisory

Agreement

in

order

to

allow

the

Subadvisor

to

continue

to

provide

portfolio

management

services

to

the

Fund

following

the

change

in

control.

The

Board

reviewed

materials

received

from

the

Manager

regarding

the

proposed

change

in

control

transaction.

The

Board

considered

that

they

had

initially

approved

the

Current

Subadvisory

Agreement

for

the

Fund

at

the

Board

of

Directors’

29,

meeting.

They

noted

that

during

the

process

of

considering

the

approval

of

the

Current

Subadvisory

Agreement,

they

had

considered

the

nature,

quality

and

extent

of

the

services

to

be

provided

by

the

Subadvisor

under

the

Current

Subadvisory

Agreement

and

had

concluded,

based

upon

the

information

provided,

that

the

terms

of

the

Current

Subadvisory

Agreement

were

reasonable

and

that

approval

of

the

Current

Subadvisory

Agreement

was

in

the

best

interests

of

the

Fund.

The

Board

considered

the

Manager’s

statements

that

there

were

no

anticipated

changes

to

the

portfolio

management

teams,

investment

philosophy

or

process

at

the

Subadvisor

and

that

the

change

in

ownership

was

not

expected

to

impact

the

nature,

quality

or

extent

of

services

that

the

Subadvisor

provides

to

the

Fund.

The

Board

also

noted

the

Manager’s

statement

that

220

the

New

Subadvisory

Agreement

for

the

Fund

would

be

identical

to

the

Current

Subadvisory

Agreement

in

all

material

respects

(including

the

subadvisory

fee

schedule).

Based

upon

all

of

the

information

considered,

the

Board

concluded

that

it

was

in

the

best

interests

of

the

Fund

to

approve

the

New

Subadvisory

Agreement

to

take

effect

following

the

change

in

control

of

the

Subadvisor.

Amended

Management

Agreement

–

Origin

Emerging

Markets

Fund

On

15,

2021,

the

Board

considered

for

Origin

Emerging

Markets

Fund

(the

“Fund”)

the

approval

of

an

amended

management

agreement

(the

“Management

Agreement”)

between

PFI,

for

the

Fund,

and

the

Manager

in

connection

with

a

proposal

to

amend

the

management

fee

schedule

by

adding

additional

breakpoints

that

would

result

in

a

reduction

of

the

Fund’s

effective

management

fee

rate

payable

at

current

asset

levels.

The

Board

reviewed

materials

received

from

the

Manager

regarding

the

proposed

change

in

the

Fund’s

management

fee

schedule.

The

Board

considered

the

Manager’s

representation

that

the

change

in

the

Fund’s

management

fee

schedule

would

not

reduce

the

quality

or

quantity

of

the

services

the

Manager

provides

to

the

Fund

and

that

the

Manager’s

obligations

under

the

Management

Agreement

would

remain

the

same

in

all

material

respects.

The

Board

also

considered

that

the

Manager

was

not

proposing

any

material

changes

to

the

terms

of

the

Management

Agreement

other

than

to

the

Fund’s

management

fee

schedule.

The

Board

considered

that

they

had

last

approved

the

Management

Agreement

for

the

Fund

during

the

annual

renewal

process

that

concluded

at

the

Board

of

Directors’

September

2020

meeting.

They

noted

that

during

the

annual

renewal

process,

they

had

considered

the

nature,

quality

and

extent

of

the

services

provided

by

the

Manager

under

the

Management

Agreement

and

had

concluded,

based

upon

the

information

provided,

that

the

terms

of

the

Management

Agreement

were

reasonable

and

that

approval

of

the

Management

Agreement

was

in

the

best

interests

of

the

Fund.

Based

upon

all

of

the

information

considered,

the

Board

concluded

that

it

was

in

the

best

interests

of

the

Fund

to

approve

the

amended

Management

Agreement.

Federal

Income

Tax

Information

Principal

Funds,

Inc.

(unaudited)

221

Long-Term

Capital

Gain

Dividends.

Certain

funds

distributed

long-term

capital

gain

dividends

during

the

fiscal

year

ended

.

Details

of

designated

long-term

capital

gain

dividends

for

federal

income

tax

purposes

are

shown

in

the

Notes

to

Financial

Statements.

To

the

extent

necessary

to

distribute

such

capital

gains,

certain

funds

may

also

utilize,

and

hereby

designate,

earnings

and

profits

distributed

to

shareholders

on

redemptions

of

shares

as

part

of

the

Dividends

Paid

Deduction.

Dividends

Received

Deduction

(“DRD”).

For

corporate

shareholders,

the

funds

designate

the

following

percentage

of

taxable

ordinary

income

distributions

(dividend

income

and

short-term

gains,

if

any),

or

up

to

the

maximum

amount

allowable,

as

DRD

eligible

for

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calendar

year

ended

Qualified

Dividend

Income

(“QDI”).

Certain

dividends

paid

by

the

funds

may

be

subject

to

a

maximum

tax

rate

of

20%.

The

funds

designate

the

following

as

a

percentage

of

taxable

ordinary

income

distributions

(dividend

income

and

short-term

gains,

if

any),

or

up

to

the

maximum

amount

allowable,

as

QDI

eligible

for

the

calendar

year

ended

2020:

Foreign

Taxes

Paid.

The

following

funds

elect

under

the

Internal

Revenue

Code

(“IRC”)

Section

853

to

pass

through

foreign

taxes

paid

to

their

shareholders.

The

funds

designated

the

following

for

federal

income

tax

purposes

for

distributions

made

during

the

taxable

year

ended

2021:

DRD

Blue

Chip

Fund

47.79%

Bond

Market

Index

Fund

0.00

Diversified

Real

Asset

Fund

82.96

Edge

MidCap

Fund

77.87

Global

Multi-Strategy

Fund

29.09

International

Equity

Index

Fund

0.00

International

Small

Company

Fund

0.00

Opportunistic

Municipal

Fund

0.00

Origin

Emerging

Markets

Fund

0.00

Small-MidCap

Dividend

Income

Fund

100.00

Small-MidCap

Growth

Fund

2.36

Spectrum

Preferred

and

Capital

Securities

Income

Fund

37.39

QDI

Blue

Chip

Fund

78.81%

Bond

Market

Index

Fund

0.00

Diversified

Real

Asset

Fund

100.00

Edge

MidCap

Fund

92.06

Global

Multi-Strategy

Fund

44.51

International

Equity

Index

Fund

80.92

International

Small

Company

Fund

94.95

Opportunistic

Municipal

Fund

0.00

Origin

Emerging

Markets

Fund

80.85

Small-MidCap

Dividend

Income

Fund

100.00

Small-MidCap

Growth

Fund

2.35

Spectrum

Preferred

and

Capital

Securities

Income

Fund

77.59

Foreign

Taxes

Per

Share

International

Equity

Index

Fund

$

0.0199

International

Small

Company

Fund

0.0215

Origin

Emerging

Markets

Fund

0.0387

Federal

Income

Tax

Information

Principal

Funds,

Inc.

(unaudited)

222

Section

163(j)

Interest

Dividends.

The

fund

below

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pass

through

Section

163(j)

Interest

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as

defined

in

Proposed

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§1.163(j)-1(b).

The

fund

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following

as

a

percentage

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taxable

ordinary

income

distributions

(dividend

income

and

short-term

gains,

if

any),

or

up

to

the

maximum

amount

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QDI

eligible

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calendar

year

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163(j)

Interest

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Table

of

Contents

Not

FDIC

or

NCUA

insured

May

lose

value

•

Not

a

deposit

•

No

bank

or

credit

union

guarantee

Not

insured

by

any

Federal

government

agency

Economic

&

Financial

Market

Review

1

Capital

Securities

Fund

(unaudited)

2

Financial

Statements

3

Notes

to

Financial

Statements

6

Schedules

of

Investments

12

Financial

Highlights

(includes

performance

information)

20

Report

of

Independent

Registered

Public

Accounting

Firm

22

Shareholder

Expense

Example

23

Supplemental

Information

24

1

Economic

&

Financial

Market

Review

The

major

theme

for

the

past

twelve

months

is

the

global

economic

recovery

from

the

COVID-19

U.S.

real

GDP

grew

at

an

average

quarter-over-quarter

annualized

rate

of

12.8%

in

the

last

four

quarters

after

a

31.2%

drop

in

2Q

2020

and

the

growth

rate

is

expected

to

remain

strong

in

the

coming

quarters.

Germany

and

Japan

GDP

also

recovered

sharply

after

it

bottomed

in

2Q

2020.

China

GDP

grew

at

a

slower

pace

in

the

first

half

of

2021

compared

to

the

second

half

of

2020

as

policymakers

adopted

deleveraging

measures

and

tightened

regulations

towards

various

business

sectors.

Economic

recovery

in

emerging

markets

has

been

generally

slower

than

developed

markets

due

to

slow

vaccination

progress

and

renewed

restrictions

the

delta

strain.

Global

manufacturing

Purchasing

Manager’

Index

(PMI)

remained

above

50

in

the

last

twelve

months

(a

number

above

50

means

manufacturing

activity

is

expanding

and

number

below

50

indicates

contraction),

and

the

latest

reading

as

of

August

2021

is

56.

Of

the

countries

tracked,

92%

showed

PMIs

higher

than

50.

GDP-weighted

developed

markets

PMI

is

59.1,

much

higher

than

50.7

of

emerging

markets.

The

strong

global

recovery

was

helped

by

extraordinarily

easy

financial

conditions.

Major

central

banks

around

the

globe

maintained

low

policy

rates

and

ample

liquidity

throughout

this

crisis

and

the

following

recovery

period.

Strong

but

desynchronized

growth

has

created

a

demand-supply

gap

in

global

goods

which

pushed

inflation

higher

during

the

last

twelve

months.

Global

inflation

increased

from

1.6%

in

August

2020

to

3.1%

in

July

2021.

Considering

low

vaccination

progress

compounded

by

a

more

contagious

strain

of

COVID-19

spreading

in

a

lot

of

export-oriented

countries,

supply

bottlenecks

could

persist

a

little

longer,

adding

upward

pressure

on

inflation.

Fueled

by

global

demand

recovery,

commodity

prices

represented

by

S&P

GSCI

total

return

index

increased

by

44%

during

the

last

twelve

months.

Copper

recovered

from

6682

to

9525

USD/MT

and

Nymex

crude

oil

rose

from

42.6

to

68.5

USD/Barrel.

As

of

August

2021,

global

earnings

have

recovered

to

pre-crisis

levels

as

the

two-year

compounded

growth

rate

turned

positive.

Compared

to

the

same

time

last

year,

MSCI

All

Country

World

Index

(ACWI)

trailing

12

months

earnings

per

share

(TTM

EPS)

grew

by

56%

as

of

August

2021.

MSCI

World

ex

USA

Index

experienced

bigger

losses

in

earnings

(TTM

EPS

down

-51%

as

of

August

2020)

but

exhibited

faster

recovery

with

a

118%

increase

during

the

last

twelve

months.

MSCI

U.S.

trailing

12

months

EPS

grew

by

33%

year-over-year,

helped

by

a

strong

recovery

in

small-cap

and

mid-cap

companies.

Technology

stocks

earnings

were

the

most

resilient,

with

decent

growth

during

recovery

phase

(38%

yoy

as

of

August

2021)

after

marginal

decline

as

of

August

2020

(NASDAQ

TTM

EPS

-3%

yoy).

MSCI

Emerging

Markets

(EM)

trailing

12

months

EPS

increased

by

49%

compared

to

same

time

last

year.

Global

equities

outperformed

global

fixed

income

over

the

last

twelve

months.

In

USD

terms,

MSCI

ACWI

recorded

29%

gains

year-over-

year

while

Bloomberg

Global

Aggregate

Corporate

Index

delivered

2%

returns.

Within

equities,

developed

market

outperformed

emerging

markets

by

9%

and

U.S.

outperformed

developed

market

ex

US

by

5%.

Within

U.S.,

small

and

mid-cap

outperformed

large-cap

and

value

outperformed

growth.

Bloomberg

US

Treasury

delivered

2%

loss

as

U.S.

10-year

treasury

yield

rising

from

70bps

(basis

points)

to

131bps.

Global

high

yield

bonds

beat

global

investment

corporate

bonds

and

global

treasury

bonds

by

6%

and

9%

respectively.

*Unless

otherwise

stated,

data

sources

are

Bloomberg,

FactSet,

and

Principal

Global

Asset

Allocation.

Data

as

of

2

Capital

Securities

Fund

Investment

Advisor:

Principal

Global

Investors,

LLC

Sub-Advisor:

Spectrum

Asset

Management,

Inc.

Investment

results

shown

represent

historical

performance

and

do

not

guarantee

future

results.

Your

investment’s

returns

and

principal

values

will

fluctuate

with

changes

in

interest

rates

and

other

market

conditions

so

the

value,

when

redeemed,

may

be

worth

more

or

less

than

original

costs.

Current

performance

may

be

lower

or

higher

than

the

performance

shown.

For

more

information,

including

the

most

recent

month-end

performance,

visit

principalfunds.com,

call

your

financial

professional,

or

call

800-222-5852

.

Average

Annual

Total

Returns*

as

of

What

contributed

to

or

detracted

from

Fund

performance

during

the

fiscal

year?***

The

investment

seeks

to

provide

current

income.

The

fund

invests

at

least

80%

of

its

net

assets,

plus

any

borrowings

for

investment

purposes,

in

capital

securities

at

the

time

of

purchase.

It

may

invest

up

to

100%

of

its

assets

in

below

investment

grade

(sometimes

called

"junk")

preferred

securities

which

are

rated

at

the

time

of

purchase

Ba1

or

lower

by

Moody's

and

BB+

or

lower

by

S&P

Global,

provided

that

the

issuer

of

such

below

investment

grade

preferred

securities

has

senior

debt

outstanding

that

is

rated

at

the

time

of

purchase

BBB-

or

higher

by

S&P

Global

or

Baa3

or

higher

by

Moody's.

The

period

began

with

the

hybrid

markets

supported

by

ongoing

bond

purchases

from

the

Fed

helping

to

support

overall

financial

conditions.

Nonetheless,

the

hybrid

markets

corrected

in

September

to

end

a

5-month

positive

run

and

then

corrected

again

before

the

US

general

elections.

Markets

appeared

pleased

with

the

prospects

of

an

incoming

Biden

Administration

as

hybrids

rallied

over

3points

after

the

election

to

close

out

2020

at

premiums.

But

the

new

year

brought

concern

over

inflation

which

led

to

a

16pt

decline

in

the

30yr

US

treasury

bond

by

March

--

one

of

the

swiftest

quarterly

declines

in

3

decades.

Credit

spreads

in

the

hybrid

market

tightened

by

16bps

during

this

decline

helping

to

foster

a

softer

landing

for

the

junior

subordinated

sector.

From

this

point,

the

Fed

was

determined

to

emphasize

a

“transitory”

inflation

narrative

to

the

bond

market

which

triggered

a

significant

reversal

and

rally

in

longer

term

treasuries

as

the

force

of

bond

buying

squeezed

the

short

sellers.

Over

the

12-month

period,

prices

in

the

retail

$25par

market

rose

over

1pt,

while

institutional

preferred

securities

rose

over

3pts,

and

contingent

convertible

capital

securities

rose

almost

3pts.

Spreads

were

tighter

across

the

board

as

significant

new

issue

flow

that

was

well

received

helped

to

drive

enthusiasm

for

yield.

Factors

that

contributed

to

the

Fund’s

performance

were

significant

overall

demand

for

credit

given

investors’

confidence

the

economy’s

recovery

and

its

expected

benefit

from

COVID-19

vaccinations

and

surging

government

spending.

Yields

for

junior

subordination

declined

60-70bps

and

spreads

tightened

by

95-115bps.

Among

the

credit

contributors

were

the

Fund’s

32%

allocation

to

US

bank

additional

tier1

securities

contributed

264bps

to

return

compared

to

219bps

for

the

benchmark

(a

25%

allocation);

the

23%

allocation

to

additional

tier1

of

non-US

banks

contributed

177bps

compared

to

1bp

for

the

benchmark

(a

1%

allocation)

and

the

20%

allocation

to

insurance

hybrids

contributed

162bps

compared

to

69bps

for

the

benchmark

(a

12%

allocation).

Credit

detractors

from

the

fund

were

less

positive

and

included

baby

bonds,

tier2

CoCos

and

regulatory

tier1

of

insurance

companies

which

contributed

a

sum

of

1bps

to

return

compared

to

37bps

for

the

benchmark.

Value

of

a

$10,000

Investment*

-

1-Year

5-Year

Since

Inception

Date

Class

S

Shares

8.77%

6.96%

6.44%

3/14/14

*Performance

assumes

reinvestment

of

all

dividends

and

capital

gains.

Performance

does

not

reflect

the

impact

of

federal,

state,

or

municipal

taxes.

If

it

did,

performance

would

be

lower.

**Performance

shown

for

the

benchmark

is

calculated

from

2/28/2014

and

assumes

reinvestment

of

all

dividends

and

distributions.

Indices

are

unmanaged,

and

individuals

cannot

invest

directly

in

an

index.

***Securities

described

in

the

fund

commentary

may

no

longer

be

held

in

the

fund.

Statement

of

Assets

and

Liabilities

Principal

Funds,

Inc.

3

See

accompanying

notes.

Amounts

in

thousands,

except

per

share

amounts

Capital

Securities

Fund

Investment

in

securities--at

cost

......................................................................................................................

$

1,073,342‌

Investment

in

affiliated

Funds--at

cost

................................................................................................................

$

12,082‌

Assets

Investment

in

securities--at

value

......................................................................................................................

$

1,144,019‌

(a)

Investment

in

affiliated

Funds--at

value

.................................................................................................................

12,082‌

Receivables:

Dividends

and

interest

.............................................................................................................................

14,172‌

Expense

reimbursement

from

Manager

...........................................................................................................

66‌

Fund

shares

sold

...................................................................................................................................

2,306‌

Investment

securities

sold

.........................................................................................................................

269‌

Total

Assets

1,172,914‌

Liabilities

Accrued

transfer

agent

fees

.............................................................................................................................

73‌

Accrued

directors'

expenses

.............................................................................................................................

1‌

Accrued

professional

fees

...............................................................................................................................

30‌

Accrued

other

expenses

.................................................................................................................................

13‌

Payables:

Fund

shares

redeemed

.............................................................................................................................

160‌

Collateral

obligation

on

securities

loaned,

at

value

.....................................................................................................

4,883‌

Total

Liabilities

5,160‌

Net

Assets

Applicable

to

Outstanding

Shares

........................................................................................................

$

1,167,754‌

Net

Assets

Consist

of:

Capital

shares

and

additional

paid-in-capital

...........................................................................................................

$

1,106,825‌

Total

distributable

earnings

(accumulated

loss)

.........................................................................................................

60,929‌

Total

Net

Assets

$

1,167,754‌

Capital

Stock

(par

value:

$.01

per

share):

Shares

authorized

........................................................................................................................................

500,000‌

Net

Asset

Value

Per

Share:

Class

S

:

Net

Assets

......................................................................................................................................

$

1,167,754‌

Shares

Issued

and

Outstanding

....................................................................................................................

108,530‌

Net

Asset

Value

per

share

.........................................................................................................................

$

10

.76‌

(a)

Includes

fair

market

value

of

securities

loaned,

see

"Securities

Lending"

in

Notes

to

Financial

Statements.

Statement

of

Operations

Principal

Funds,

Inc.

Year

Ended

4

See

accompanying

notes.

Amounts

in

thousands

Capital

Securities

Fund

Net

Investment

Income

(Loss)

Income:

Dividends

..............................................................................................................................................

$

1,682‌

Interest

.................................................................................................................................................

40,945‌

Securities

lending

-

net

................................................................................................................................

57‌

Total

Income

42,684‌

Expenses:

Registration

fees

-

Class

S

............................................................................................................................

48‌

Shareholder

reports

-

Class

S

.........................................................................................................................

10‌

Transfer agent

fees

-

Class

S

..........................................................................................................................

395‌

Chief

compliance

officer

expenses

....................................................................................................................

1‌

Custodian

fees

.........................................................................................................................................

9‌

Directors'

expenses

....................................................................................................................................

17‌

Professional fees

......................................................................................................................................

34‌

Other

expenses

........................................................................................................................................

10‌

Total

Gross

Expenses

524‌

Less:

Reimbursement

from

Manager

-

Class

S

.......................................................................................................

524‌

Total

Net

Expenses

–‌

Net

Investment

Income

(Loss)

42,684‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

Net

realized

gain

(loss)

from:

Investment

transactions

...............................................................................................................................

4,876‌

Net

change

in

unrealized

appreciation/(depreciation)

of:

Investments

............................................................................................................................................

34,419‌

Net

Realized

and

Unrealized

Gain

(Loss)

on

investments

39,295‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

$

81,979‌

Statement

of

Changes

in

Net

Assets

Principal

Funds,

Inc.

5

See

accompanying

notes.

Amounts

in

thousands

Capital

Securities

Fund

Year

Ended

Year

Ended

Operations

Net

investment

income

(loss)

.......................................................................................................

$

42,684‌

$

35,626‌

Net

realized

gain

(loss)

on

investments

.............................................................................................

4,876‌

(3,951‌)

Net

change

in

unrealized

appreciation/(depreciation)

of

investments

..............................................................

34,419‌

21,252‌

Net

Increase

(Decrease)

in

Net

Assets

Resulting

from

Operations

81,979‌

52,927‌

Dividends

and

Distributions

to

Shareholders

From

net

investment

income

and

net

realized

gain

on

investments

................................................................

(45,215‌)

(38,142‌)

From

tax

return

of

capital

...........................................................................................................

–‌

(99‌)

Total

Dividends

and

Distributions

(45,215‌)

(38,241‌)

Capital

Share

Transactions

Net

increase

(decrease)

in

capital

share

transactions

...............................................................................

284,141‌

183,731‌

Total

Increase

(Decrease)

in

Net

Assets

320,905‌

198,417‌

Net

Assets

Beginning

of

period

.................................................................................................................

846,849‌

648,432‌

End

of

period

.......................................................................................................................

$

1,167,754‌

$

846,849‌

Class

S

Capital

Share

Transactions:

Year

Ended

Dollars:

Sold

.........................................................................................................

$

438,675‌

Reinvested

....................................................................................................

27,537‌

Redeemed

.....................................................................................................

(182,071‌)

Net

Increase

(Decrease)

...........................................................................................

$

284,141‌

Shares:

Sold

.........................................................................................................

41,354‌

Reinvested

....................................................................................................

2,606‌

Redeemed

.....................................................................................................

(17,180‌)

Net

Increase

(Decrease)

...........................................................................................

26,780‌

Year

Ended

Dollars:

Sold

.........................................................................................................

$

332,732‌

Reinvested

....................................................................................................

23,946‌

Redeemed

.....................................................................................................

(172,947‌)

Net

Increase

(Decrease)

...........................................................................................

$

183,731‌

Shares:

Sold

.........................................................................................................

33,081‌

Reinvested

....................................................................................................

2,381‌

Redeemed

.....................................................................................................

(17,461‌)

Net

Increase

(Decrease)

...........................................................................................

18,001‌

Notes

to

Financial

Statements

Principal

Funds,

Inc.

6

1.

Organization

Principal

Funds,

Inc.

(the

"Fund")

is

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

as

an

open-end

management

investment

company

and

operates

as

a

series

fund

in

the

mutual

fund

industry.

The

financial

statements

for

Capital

Securities

Fund

(the

“fund”),

a

series

of

the

Fund,

are

presented

herein.

The

fund

is

an

investment

company

and

applies

specialized

accounting

and

reporting

under

Accounting

Standards

Codification

(“ASC”)

Topic

946,

Financial

Services

-

Investment

Companies

.

The

fund

has

not

provided

financial

support

and

is

not

contractually

required

to

provide

financial

support

to

any

investee.

2.

Significant

Accounting

Policies

The

preparation

of

financial

statements

in

conformity

with

U.S.

generally

accepted

accounting

principles

(“U.S.

GAAP”)

requires

management

to

make

estimates

and

assumptions

that

affect

the

reported

amounts

of

assets

and

liabilities

and

disclosure

of

contingent

assets

and

liabilities

at

the

date

of

the

financial

statements

and

the

reported

amounts

of

revenues

and

expenses

during

the

reporting

period.

Actual

results

could

differ

from

those

estimates.

The

following

summarizes

the

significant

accounting

policies

of

the

fund:

Security

Valuation.

The

fund

may

invest

in

other

series

of

the

Fund

and

other

investment

companies,

which

may

include

closed-end

investment

companies,

exchange-traded

funds,

money

market

funds

and

other

registered

open-end

investment

companies.

Investments

in

registered

open-end

investment

companies,

other

than

exchange-traded

funds,

are

valued

at

the

respective

fund’s

closing

net

asset

value

per

share

on

the

day

of

valuation.

The

fund

values

securities,

including

exchange-traded

funds,

for

which

market

quotations

are

readily

available

at

fair

value,

which

is

determined

using

the

last

reported

sale

price.

If

no

sales

are

reported,

as

is

regularly

the

case

for

some

securities

traded

over-the-counter,

securities

are

valued

using

the

last

reported

bid

price

or

an

evaluated

bid

price

provided

by

a

pricing

service.

Pricing

services

use

modeling

techniques

that

incorporate

security

characteristics

such

as

current

quotations

by

broker/dealers,

coupon,

maturity,

quality,

type

of

issue,

trading

characteristics,

other

yield

and

risk

factors,

and

other

market

conditions

to

determine

an

evaluated

bid

price

or,

in

the

case

of

certain

credit

default

swaps,

a

mean

price

provided

by

a

pricing

service.

When

reliable

market

quotations

are

not

considered

to

be

readily

available,

which

may

be

the

case,

for

example,

with

respect

to

restricted

securities,

certain

debt

securities,

preferred

stocks,

and

foreign

securities,

the

investments

are

valued

at

their

fair

value

as

determined

in

good

faith

by

Principal

Global

Investors,

LLC

(the

“Manager”)

under

procedures

established

and

periodically

reviewed

by

the

Fund’s

Board

of

Directors.

Income

and

Investment

Transactions.

The

fund

records

investment

transactions

on

a

trade

date

basis.

The

identified

cost

basis

has

been

used

in

determining

the

net

realized

gain

or

loss

from

investment

transactions

and

unrealized

appreciation

or

depreciation

of

investments.

The

fund

records

dividend

income

on

the

ex-dividend

date.

Interest

income

is

recognized

on

an

accrual

basis.

Discounts

and

premiums

on

securities

are

accreted/amortized,

respectively,

on

the

level

yield

method

over

the

expected

lives

of

the

respective

securities.

Callable

debt

securities

purchased

at

a

premium

are

amortized

to

the

earliest

call

date

and

to

the

callable

amount,

if

other

than

par.

Expenses.

Expenses

directly

attributed

to

the

fund

are

charged

to

the

fund.

Other

expenses

not

directly

attributed

to

a

particular

fund

are

apportioned

among

the

registered

investment

companies

managed

by

the

Manager.

In

addition

to

the

expenses

that

the

fund

bears

directly,

the

fund

may

indirectly

bear

a

pro

rata

share

of

the

fees

and

expenses

of

the

other

series

of

the

Fund

and

other

investment

companies

(collectively,

“Underlying

Funds”)

in

which

it

invests.

Expenses

included

in

the

statement

of

operations

reflect

the

expenses

of

the

fund

and

do

not

include

any

expenses

associated

with

the

Underlying

Funds.

Dividends

and

Distributions

to

Shareholders.

Dividends

and

distributions

to

shareholders

of

the

fund

are

recorded

on

the

ex-dividend

date.

Dividends

and

distributions

to

shareholders

from

net

investment

income

and

net

realized

gain

from

investments

are

determined

in

accordance

with

federal

tax

regulations,

which

may

differ

from

U.S.

GAAP.

These

differences

are

primarily

due

to

differing

treatments

for

amortization

of

premiums

and

discounts,

losses

deferred

due

to

wash

sales,

certain

preferred

securities,

and

utilization

of

earnings

and

profits

distributed

to

shareholders

on

redemption

of

shares.

Permanent

book

and

tax

basis

differences

are

reclassified

within

the

capital

accounts

based

on

federal

tax-basis

treatment;

temporary

differences

do

not

require

reclassification.

To

the

extent

dividends

and

distributions

exceed

current

and

accumulated

earnings

and

profits

for

federal

income

tax

purposes,

they

are

reported

as

return

of

capital

distributions.

Federal

Income

Taxes.

No

provision

for

federal

income

taxes

is

considered

necessary

because

the

fund

intends

to

qualify

as

a

“regulated

investment

company”

under

the

Internal

Revenue

Code

and

intends

to

distribute

each

year

substantially

all

of

its

net

investment

income

and

realized

capital

gains

to

shareholders.

Notes

to

Financial

Statements

Principal

Funds,

Inc.

7

Management

evaluates

tax

positions

taken

or

expected

to

be

taken

in

the

course

of

preparing

the

fund’s

tax

returns

to

determine

whether

it

is

“more

likely

than

not”

that

each

tax

position

would

be

sustained

upon

examination

by

a

taxing

authority

based

on

the

technical

merits

of

the

position.

Tax

positions

not

deemed

to

meet

the

“more

likely

than

not”

threshold

would

be

recorded

as

a

tax

benefit

or

expense

in

the

current

year.

During

the

year

ended

,

the

fund

did

not

record

any

such

tax

benefit

or

expense

in

the

accompanying

financial

statements.

The

statute

of

limitations

remains

open

for

the

last

three

years,

once

a

return

is

filed.

No

examinations

are

in

progress

at

this

time.

Foreign

Taxes.

The

fund

is

subject

to

foreign

income

taxes

imposed

by

certain

countries

in

which

it

invests.

Foreign

income

taxes

are

accrued

by

the

fund

as

a

reduction

of

income.

This

amount

is

shown

as

withholding

tax

on

the

statement

of

operations.

Recent

Accounting

Pronouncements.

In

March

2020,

the

Financial

Accounting

Standards

Board

("FASB") issued

Accounting

Standards

Update

("ASU")

No.

2020-04

Reference

Rate

Reform

(Topic

848);

Facilitation

of

the

Effects

of

Reference

Rate

Reform

on

Financial

Reporting,

which

provides

optional

guidance

for

a

limited

period

of

time

to

ease

the

potential

burden

in

accounting

for

(or

recognizing

the

effects

of)

reference

rate

reform.

The

guidance

is

applicable

to

referencing

London

Interbank

Offered

Rate

(“LIBOR”)

or

another

reference

rate

that

is

expected

to

be

discontinued

due

to

reference

rate

reform.

The

ASU

is

effective

as

of

and

generally

can

be

applied

through

2022.

Management

is

evaluating

the

impact

of

the

ASU

over

the

period

of

time

the

ASU

is

effective.

3.

Operating

Policies

Borrowings.

Pursuant

to

an

exemptive

order

issued

by

the

Securities

and

Exchange

Commission

(the

“SEC”),

the

fund

and

other

registered

investment

companies

managed

by

the

Manager

may

participate

in

an

interfund

lending

facility

(“Facility”).

The

Facility

allows

the

fund

to

borrow

money

from

or

loan

money

to

the

other

participants.

Loans

under

the

Facility

are

made

to

handle

unusual

and/or

unanticipated

short-term

cash

requirements.

Interest

paid

and

received

on

borrowings

is

the

average

of

the

current

repurchase

agreement

rate

and

the

bank

loan

rate

(the

higher

of

(i)

the

Federal

Funds

Rate

or

(ii)

the

One

Month

LIBOR

rate

plus

1.00%).

The

interest

income

received

is

included

in

interest

income

on

the

statement

of

operations.

The

interest

expense

associated

with

this

borrowing

is

included

in

other

expenses

on

the

statement

of

operations.

There

were

no

outstanding

loans

or

borrowings

on

the

Facility

as

of

.

During

the

year

ended

2021,

the

fund

lent

to

the

Facility

as

follows

(amounts

in

thousands):

During

the

year

ended

,

the

fund

borrowed

from

the

Facility

as

follows

(amounts

in

thousands):

In

addition,

the

fund

participates

with

other

registered

investment

companies

managed

by

the

Manager

in

an

unsecured

joint

line

of

credit

with

a

bank,

which

allows

the

participants

to

borrow

up

to

$250

million,

collectively,

effective

2021.

Prior

to

2021,

participants

could

borrow

up

to

$100

million,

collectively.

Borrowings

are

made

solely

to

facilitate

the

handling

of

unusual

and/or

unanticipated

short-

term

cash

requirements.

Interest

is

charged

to

each

participant,

based

on

its

borrowings,

at

a

rate

equal

to

the

higher

of

the

Federal

Funds

Rate

or

the

One

Month

LIBOR

rate

(or

such

successor

if

no

longer

available)

plus

1.25%.

Additionally,

a

commitment

fee

is

charged

at

an

annual

rate

of

.15%

(effective

and

thereafter)

on

the

amount

of

the

line

of

credit

which

is

allocated

to

each

participating

fund

based

on

average

net

assets.

Prior

to

2021,

the

commitment

fee

was

charged

at

an

annual

rate

of

.20%.

The

interest

expense

associated

with

the

commitment

fee

and

borrowings

is

included

in

other

expenses

on

the

statement

of

operations.

The

fund

did

not

borrow

against

the

line

of

credit

during

the

year

ended

.

Contingent

Convertible

Securities.

As

footnoted

in

the

schedule

of

investments

, the

fund

invests in

contingent

convertible securities

(“

CoCos

”).

CoCos are

hybrid

debt

securities

that

may

convert

into

equity

or

have

their

principal

written

down

upon

the

occurrence

of

certain

“triggers.”

Although

a

contingent

convertible

security’s

equity

conversion

and

principal

write-down

features

are

tailored

to

the

particular

issuing

banking

institution

and

its

regulatory

requirements,

triggers

are

generally

linked

to

regulatory

capital

thresholds

or

regulatory

actions

calling

into

question

such

institution’s

continued

viability

as

a

going-concern.

CoCos

may

have

no

stated

maturity

and

fully

discretionary

coupons,

which

means

coupon

payments

can

be

canceled

at

the

issuing

banking

institution’s

discretion

or

at

the

request

of

the

relevant

regulatory

authority

without

causing

a

default.

To

provide

the

appropriate

regulatory

capital

treatment,

CoCos

are

usually

issued

in

the

form

Average

Daily

Amount

Loaned

Weighted

Average

Annual

Interest

Rate

Capital

Securities

Fund

$

259

0.66

%

Average

Daily

Outstanding

Balance

Weighted

Average

Annual

Interest

Rate

Capital

Securities

Fund

$

11

0.69

%

2.

Significant

Accounting

Policies

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

8

of

subordinated

debt

instruments

that

rank

junior

to

the

claims

of

holders

of

more

senior

obligations

in

the

event

of

the

issuer’s

liquidation.

If

CoCos

are

converted

into

equity

securities

due

to

a

trigger

event,

holders

will

be

further

subordinated.

The

future

value

of

CoCos

is

unpredictable

and

is

influenced

by

many

factors

including,

without

limitation:

the

creditworthiness

of

the

issuer

and/or

fluctuations

in

such

issuer’s

applicable

capital

ratios;

supply

and

demand

for

CoCos;

general

market

conditions

and

available

liquidity;

and

economic,

financial

and

political

events

that

affect

the

issuer,

its

particular

market

or

the

financial

markets

in

general.

Due

to

these

features,

CoCos

may

have

substantially

greater

risk

than

other

securities

in

times

of

financial

stress.

Because

of

the

uncertainty

regarding

whether

a

conversion

event

will

occur,

it

may

be

difficult

to

predict

when,

if

at

all,

a

contingent

convertible

security

will

be

converted

to

equity,

and

a

fund

may

suffer

losses

as

a

result.

If

the

trigger

level

is

breached,

the

issuer’s

decision

to

write

down,

write

off

or

convert

a

contingent

convertible

security

may

result

in

the

fund's

complete

loss

on

an

investment

in

CoCos

with

no

chance

of

recovery

even

if

the

issuer

remains

in

existence.

Indemnification.

Under

the

Fund’s

by-laws,

present

and

past

officers,

directors,

and

employees

are

indemnified

against

certain

liabilities

arising

out

of

the

performance

of

their

duties.

In

addition,

in

the

normal

course

of

business,

the

Fund

may

enter

into

a

variety

of

that

may

contain

representations

and

warranties

which

provide

general

indemnifications.

The

Fund’s

maximum

exposure

under

these

arrangements

is

unknown,

as

this

would

involve

future

claims

that

may

be

made

against

the

Fund.

Securities

Lending.

As

footnoted

in

the

schedule

of

investments,

the

fund

may

lend

portfolio

securities

to

approved

brokerage

firms

to

earn

additional

income.

The

fund

receives

collateral,

in

the

form

of

cash,

against

the

loaned

securities.

During

the

period

of

the

loan,

the

borrower

must

maintain

collateral

in

an

amount

not

less

than

102%

of

the

market

value

of

the

domestic

and

foreign

fixed

income

loaned

securities

and

105%

of

the

market

value

of

the

foreign

equity

loaned

securities.

The

market

value

of

the

loaned

securities

is

determined

at

the

close

of

business

of

the

fund

and

any

additional

required

collateral

is

delivered

to

the

fund

on

the

day.

The

cash

collateral

received

is

usually

invested

in

an

SEC-registered

money

market

mutual

fund

and

the

fund

could

realize

a

loss

on

such

investments.

Further,

the

fund

could

experience

a

delay

in

recovering

their

securities

and

possible

loss

of

income

or

value

if

the

borrower

fails

to

return

them.

Securities

lending

income,

net

of

is

shown

on

the

statement

of

operations.

4.

Fair

Valuation

Fair

value

is

defined

as

the

price

that

the

fund

would

receive

upon

selling

a

security

in

a

timely

transaction

to

an

independent

buyer

in

the

principal

or

most

advantageous

market

of

the

security

at

the

measurement

date.

In

determining

fair

value,

the

fund

may

use

one

or

more

of

the

following

approaches:

market,

income

and/or

cost.

A

hierarchy

for

inputs

is

used

in

measuring

fair

value

that

maximizes

the

use

of

observable

inputs

and

minimizes

the

use

of

unobservable

inputs

by

requiring

that

the

most

observable

inputs

be

used

when

available.

Observable

inputs

are

inputs

that

reflect

the

assumptions

market

participants

would

use

in

pricing

the

asset

or

liability

developed

based

on

market

data

obtained

from

sources

independent

of

the

fund.

Unobservable

inputs

are

inputs

that

reflect

the

fund’s

own

estimates

about

the

estimates

market

participants

would

use

in

pricing

the

asset

or

liability

developed

based

on

the

best

information

available

in

the

circumstances.

The

three-tier

hierarchy

of

inputs

is

summarized

in

the

three

broad

levels

listed

below.

Level

1

–

Quoted

prices

are

available

in

active

markets

for

identical

securities

as

of

the

reporting

date.

Investments

which

are

generally

included

in

the

category

include

listed

equities

and

listed

derivatives.

Level

2

–

Other

significant

observable

inputs

(including

quoted

prices

for

similar

investments,

interest

rates,

prepayment

speeds,

credit

risk,

etc.).

Investments

which

are

generally

included

in

this

category

include

certain

foreign

equities,

corporate

bonds,

and

U.S.

Government

and

Government

Agency

Obligations.

Level

3

–

Significant

unobservable

inputs

(including

the

fund’s

assumptions

in

determining

the

fair

value

of

investments).

Investments

which

are

generally

included

in

this

category

include

certain

corporate

bonds

or

preferred

stocks.

The

availability

of

observable

inputs

can

vary

from

security

to

security

and

is

affected

by

a

wide

variety

of

factors,

including,

for

example,

the

type

of

security,

whether

the

security

is

new

and

not

yet

established

in

the

market

place,

and

other

characteristics

particular

to

the

transaction.

To

the

extent

that

valuation

is

based

on

models

or

inputs

that

are

less

observable

or

unobservable

in

the

market,

the

determination

of

fair

value

requires

more

judgment.

Accordingly,

the

degree

of

judgment

exercised

by

the

fund

in

determining

fair

value

is

greatest

for

instruments

categorized

in

Level

3.

Operating

Policies

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

9

In

certain

cases,

the

inputs

used

to

measure

fair

value

may

fall

into

different

levels

of

the

fair

value

hierarchy.

In

such

cases,

for

disclosure

purposes,

the

level

in

the

fair

value

hierarchy

within

which

the

fair

value

measurement

in

its

entirety

falls

is

determined

based

on

the

lowest

level

input

that

is

significant

to

the

fair

value

measurement

in

its

entirety.

Fair

value

is

a

market

based

measure

considered

from

the

perspective

of

a

market

participant

who

holds

the

asset

rather

than

an

entity

specific

measure.

Therefore,

even

when

market

assumptions

are

not

readily

available,

the

fund’s

own

assumptions

are

set

to

reflect

those

that

market

participants

would

use

in

pricing

the

asset

or

liability

at

the

measurement

date.

The

fund

uses

prices

and

inputs

that

are

current

as

of

the

measurement

date,

when

available.

Investments

which

are

included

in

the

Level

3

category

may

be

valued

using

indicative

quoted

prices

from

brokers

and

dealers

participating

in

the

market

for

these

investments.

These

investments

are

classified

as

Level

3

investments

due

to

the

lack

of

market

transparency

and

market

corroboration

to

support

these

quoted

prices.

Valuation

models

may

be

used

as

the

pricing

source

for

other

investments

classified

as

Level

3.

Valuation

models

rely

on

one

or

more

significant

unobservable

inputs.

Benchmark

pricing

procedures

set

the

base

price

of

a

security

based

on

current

market

data.

The

base

price

may

be

a

broker-dealer

quote,

transaction

price,

or

internal

value

based

on

relevant

market

data.

The

fair

values

of

these

securities

are

dependent

on

economic,

political,

and

other

considerations.

The

values

of

such

securities

may

be

affected

by

significant

changes

in

the

economic

conditions,

changes

in

government

policies,

and

other

factors

(e.g.,

natural

disasters,

pandemics,

accidents,

conflicts,

etc.).

The

inputs

or

methodology

used

for

valuing

securities

are

not

necessarily

an

indication

of

the

risk

associated

with

investing

in

those

instruments.

The

following

is

a

summary

of

the

inputs

used

as

of

in

valuing

the

fund’s

securities

carried

at

fair

value

(amounts

in

thousands):

*For

additional

detail

regarding

sector

classifications,

please

see

the

schedule

of

investments

During

the

year,

there

were

no

purchases,

sales,

or

transfers

into

or

out

of

Level

3.

5.

Management

Agreement

and

Transactions

with

Affiliates

The

Manager

has

contractually

agreed

to

limit

the

expenses

(excluding

interest

expense,

expenses

fund

investments,

acquired

fund

fees

and

expenses,

and

tax

reclaim

recovery

expenses

and

other

extraordinary

expenses)

for

the

fund.

The

reductions

and

reimbursements

are

in

amounts

that

maintain

total

operating

expenses

at

0.00%.

The

limit

is

expressed

as

a

percentage

of

average

daily

net

assets

on

an

annualized

basis

during

the

reporting

period.

It

is

expected

that

the

expense

limit

will

continue

permanently.

There

is

no

management

fee

charged

by

the

fund.

The

fund

is

an

integral

part

of

“wrap-fee”

programs,

including

those

sponsored

by

registered

investment

advisors

and

broker-dealers

unaffiliated

with

the

fund.

Participants

in

these

programs

pay

a

“wrap”

fee

to

the

wrap-fee

program’s

sponsor.

Amounts

owed

to

the

fund

under

the

terms

of

the

expense

limitation

agreements

are

reflected

in

the

statement

of

assets

and

liabilities

as

an

expense

reimbursement

from

Manager

and

are

settled

periodically.

Fund

Level

1

-

Quoted

Prices

Level

2

-

Other

Significant

Observable

Inputs

Level

3

-

Significant

Unobservable

Inputs

Totals

(Level

1,2,3)

Capital

Securities

Fund

Bonds*

$

—

$

1,113,031

$

—

$

1,113,031

Convertible

Preferred

Stocks

Financial

1,468

—

1,468

Investment

Companies

17,548

—

17,548

Preferred

Stocks

Energy

3,076

—

3,076

Financial

9,162

—

9,162

Government

624

6,186

—

6,810

Utilities

499

—

499

U.S.

Government

&

Government

Agency

Obligations*

—

4,507

—

4,507

Total

investments

in

securities

$

32,377

$

1,123,724

$

—

$

1,156,101

4.

Fair

Valuation

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

10

Chief

Compliance

Officer

Expense

.

The

fund

pays

certain

expenses

associated

with

the

Chief

Compliance

Officer

(“CCO”).

This

expense

is

allocated

among

the

registered

investment

companies

managed

by

the

Manager

based

on

the

relative

net

assets

of

each

fund

and

is

shown

on

the

statement

of

operations.

6.

Investment

Transactions

For

the

year

ended

2021,

the

cost

of

investment

securities

purchased

and

proceeds

from

investment

securities

sold

(not

including

short-term

investments

and

U.S.

government

securities)

by

the

fund

was

as

follows

(amounts

in

thousands):

For

the year

ended

2021,

the

cost

of

U.S.

government

securities

purchased

and

proceeds

from

U.S.

government

securities

sold

(not

including

short-term

investments)

by

the

fund

was

as

follows

(amounts

in

thousands):

7.

Federal

Tax

Information

Distributions

to

Shareholders.

The

federal

income

tax

character

of

distributions

paid

for

the years

ended August

2021 and

2020 were

as

follows

(amounts

in

thousands):

For

U.S.

federal

income

tax

purposes,

short-term

capital

gain

distributions

are

considered

ordinary

income

distributions.

Distributable

Earnings.

As

of August

2021,

the

components

of

total

distributable

earnings

(accumulated

loss)

on

a

federal

tax

basis

were

as

follows

(amounts

in

thousands):

*Represents

book-to-tax

accounting

differences

contingent

convertible

bonds

and

perpetual

bonds.

Capital

Loss

Carryforwards.

For

federal

income

tax

purposes,

capital

loss

carryforwards

are

losses

that

can

be

used

to

offset

future

capital

gains

of

the

fund.

As

of

,

the

fund

had

approximate

net

capital

loss

carryforwards

as

follows

(amounts

in

thousands):

Capital

losses

will

be

carried

forward

with

no

expiration

and

with

the

character

of

the

loss

retained.

For

the

year

ended

,

the

fund

utilized

capital

loss

carryforwards

as

follows

(amounts

in

thousands):

Late-Year

Losses.

A

regulated

investment

company

may

elect

to

treat

any

portion

of

its

qualified

late-year

loss

as

arising

on

the

first

day

of

the

year.

Qualified

late-year

losses

are

certain

capital

and

ordinary

losses

which

occur

during

the

portion

of

the

fund’s

taxable

year

subsequent

to

October

31

and

December

31,

respectively. As

of

2021,

the

fund

does

not

plan

to

defer

any

late

year

losses.

Reclassification

of

Capital

Accounts.

The

fund

may

record

reclassifications

in

its

capital

accounts.

These

reclassifications

have

no

impact

on

the

total

net

assets

of

the

fund.

The

reclassifications

are

a

result

of

permanent

differences

between

U.S.

GAAP

and

tax

accounting.

Adjustments

are

made

to

reflect

the

impact

these

items

have

on

current

and

future

distributions

to

shareholders.

Therefore,

the

source

of

the

fund’s

distributions

may

be

shown

in

the

accompanying

statement

of

changes

in

net

assets

as

from

net

investment

income

and

net

realized

Purchases

Sales

Capital

Securities

Fund

$

420,981

$

114,733

Purchases

Sales

Capital

Securities

Fund

$

2,999

$

20,438

Ordinary

Income

Return

of

Capital

2021

2020

2021

2020

Capital

Securities

Fund

$

45,215

$

38,142

$

—

$

99

Undistributed

Ordinary

Income

Undistributed

Long-Term

Capital

Gains

Accumulated

Losses

Net

Unrealized

Appreciation

(Depreciation)

Other

Temporary

Differences

*

Total

Accumulated

Earnings

(Deficit)

Capital

Securities

Fund

$

649

$

—

$

(5,218

)

$

57,180

$

8,318

$

60,929

Long-Term

Capital

Securities

Fund

$

5,218

Utilized

Capital

Securities

Fund

$

3,729

5.

Management

Agreement

and

Transactions

with

Affiliates

(continued)

Notes

to

Financial

Statements

Principal

Funds,

Inc.

11

gain

on

investments

or

from

tax

return

of

capital

depending

on

the

type

of

book

and

tax

differences

that

exist.

For

the

year

ended

2021,

the

fund

recorded

reclassifications

as

follows

(amounts

in

thousands):

Federal

Income

Tax

Basis.

At

2021,

the

net

federal

income

tax

unrealized

appreciation

(depreciation)

and

federal

tax

cost

of

investments

held

by

the

fund

were

as

follows

(amounts

in

thousands):

8.

Subsequent

Events

Management

has

evaluated

events

and

transactions

that

have

occurred

through

the

date

the

financial

statements

were issued

that

would

merit

recognition

or

disclosure

in

the

financial

statements.

There

were

no

items

requiring

adjustment

of

the

financial

statements

or

additional

disclosure.

Total

Distributable

Earnings

(Accumulated

Loss)

Capital

Shares

and

Additional

Paid-in-Capital

Capital

Securities

Fund

$

9

$

(9)

Unrealized

Appreciation

Unrealized

(Depreciation)

Net

Unrealized

Appreciation/

(Depreciation)

Cost

for

Federal

Income

Tax

Purposes

Capital

Securities

Fund

$

64,180

$

(7,000)

$

57,180

$

1,098,921

7.

Federal

Tax

Information

(continued)

Schedule

of

Investments

Capital

Securities

Fund

See

accompanying

notes.

12

INVESTMENT

COMPANIES

-

1.50%

Shares

Held

Value

(000's)

Exchange-Traded

Funds

-

0.05%

Invesco

Preferred

ETF

33,169‌

$

502‌

iShares

Preferred

&

Income

Securities

ETF

(a)

2,075‌

81‌

$

583‌

Money

Market

Funds

-

1.45%

BlackRock

Liquidity

FedFund

-

Institutional

Class

0.03%

(b),(c)

4,883,023‌

4,883‌

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

(b),(d),(e)

12,081,617‌

12,082‌

$

16,965‌

TOTAL

INVESTMENT

COMPANIES

$

17,548‌

CONVERTIBLE

PREFERRED

STOCKS

-

0.13%

Shares

Held

Value

(000's)

Banks

-

0.13%

Bank

of

America

Corp

7.25%

(f)

1,000‌

$

1,468‌

TOTAL

CONVERTIBLE

PREFERRED

STOCKS

$

1,468‌

PREFERRED

STOCKS

-

1.67%

Shares

Held

Value

(000's)

Banks

-

0.64%

Cullen/Frost

Bankers

Inc

4.45%,

12/15/2025

(a),(f)

71,247‌

$

1,884‌

Fifth

Third

Bancorp

6.63%,

12/31/2023

(a),(f)

22,861‌

657‌

3

Month

USD

LIBOR

+

3.71%

First

Republic

Bank/CA

5.13%,

06/30/2022

(f)

27,504‌

720‌

Fulton

Financial

Corp

5.13%,

01/15/2026

(f)

116,351‌

3,142‌

KeyCorp

6.13%,

12/15/2026

(a),(f)

801‌

24‌

3

Month

USD

LIBOR

+

3.89%

Valley

National

Bancorp

6.25%,

06/30/2025

(f)

20,342‌

620‌

3

Month

USD

LIBOR

+

3.85%

Webster

Financial

Corp

5.25%,

12/15/2022

(f)

15,345‌

411‌

$

7,458‌

Diversified

Financial

Services

-

0.04%

Affiliated

Managers

Group

Inc

4.20%,

09/30/2061

17,000‌

424‌

Electric

-

0.04%

Southern

Co/The

4.95

%,

01/30/2080

17,888‌

478‌

Gas

-

0.00%

NiSource

Inc

6.50%,

03/15/2024

(f)

767‌

21‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.63%

Insurance

-

0.10%

Assurant

Inc

5.25%,

01/15/2061

38,498‌

1,043‌

Voya

Financial

Inc

5.35%,

09/15/2029

(f)

4,739‌

141‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.21%

$

1,184‌

Pipelines

-

0.26%

Enbridge

Inc

6.38%,

04/15/2078

113,414‌

3,076‌

3

Month

USD

LIBOR

+

3.59%

REITs

-

0.01%

Public

Storage

4.88%,

09/12/2024

(f)

3,411‌

96‌

Sovereign

-

0.58%

CoBank

ACB

6.13%,

01/01/2022

(f)

6,000‌

624‌

CoBank

ACB

6.20%,

01/01/2025

(f)

10,000‌

1,100‌

3

Month

USD

LIBOR

+

3.74%

CoBank

ACB

6.25%,

10/01/2022

(f)

38,800‌

4,016‌

3

Month

USD

LIBOR

+

4.56%

Farm

Credit

Bank

of

Texas

6.75%,

09/15/2023

(f),(g)

10,000‌

1,070‌

3

Month

USD

LIBOR

+

4.01%

$

6,810‌

TOTAL

PREFERRED

STOCKS

$

19,547‌

BONDS

-

95.31%

Principal

Amount

(000's)

Value

(000's)

Banks

-

50.66%

Australia

&

New

Zealand

Banking

Group

Ltd/

United

Kingdom

6.75%,

06/15/2026

(f),(g),(h),(i)

$

1,900‌

$

2,228‌

USD

Swap

Rate

NY

5

Year

+

5.17%

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

Banco

Bilbao

Vizcaya

Argentaria

SA

6.50%,

03/05/2025

(f),(h),(i)

$

9,400‌

$

10,288‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.19%

Banco

Santander

SA

4.75%,

11/12/2026

(f),(h),(i)

10,000‌

10,231‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.75%

Bank

of

America

Corp

6.25%,

09/05/2024

(f),(h)

2,000‌

2,215‌

3

Month

USD

LIBOR

+

3.71%

6.30%,

03/10/2026

(f),(h)

2,000‌

2,324‌

3

Month

USD

LIBOR

+

4.55%

6.50%,

10/23/2024

(f),(h)

2,981‌

3,361‌

3

Month

USD

LIBOR

+

4.17%

Bank

of

New

York

Mellon

Corp/The

3.55%,

12/20/2021

(f)

8,100‌

8,164‌

3

Month

USD

LIBOR

+

3.42%

3.70%,

03/20/2026

(f),(h)

25,000‌

26,194‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.35%

4.63%,

09/20/2026

(f),(h)

7,373‌

8,087‌

3

Month

USD

LIBOR

+

3.13%

Bank

of

Nova

Scotia/The

4.90%,

06/04/2025

(f),(h)

24,000‌

26,070‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.55%

Barclays

Bank

PLC

6.28%,

12/15/2034

(f),(h)

5,450‌

7,453‌

3

Month

USD

LIBOR

+

1.55%

Barclays

PLC

4.38%,

03/15/2028

(f),(h),(i)

8,000‌

8,102‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.41%

7.75%,

09/15/2023

(f),(h),(i)

10,120‌

11,069‌

USD

Swap

Semi-Annual

5

Year

+

4.84%

8.00%,

06/15/2024

(f),(h),(i)

8,000‌

9,090‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.67%

BNP

Paribas

SA

4.50%,

02/25/2030

(f),(g),(h),(i)

3,000‌

3,045‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.94%

6.63%,

03/25/2024

(f),(h),(i)

800‌

873‌

USD

Swap

Rate

NY

5

Year

+

4.15%

7.20%,

06/25/2037

(a),(f),(g),(h)

1,300‌

1,388‌

3

Month

USD

LIBOR

+

1.29%

7.38%,

08/19/2025

(f),(g),(h),(i)

6,103‌

7,127‌

USD

Swap

Semi-Annual

5

Year

+

5.15%

Citigroup

Inc

3.88%,

02/18/2026

(f),(h)

9,500‌

9,773‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.42%

4.00%,

12/10/2025

(f),(h)

8,000‌

8,300‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.60%

6.25%,

08/15/2026

(f),(h)

1,399‌

1,626‌

3

Month

USD

LIBOR

+

4.52%

Citizens

Financial

Group

Inc

4.00%,

10/06/2026

(f),(h)

3,900‌

3,993‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.22%

5.65%,

10/06/2025

(f),(h)

2,000‌

2,230‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.31%

6.38%,

04/06/2024

(f),(h)

3,500‌

3,723‌

3

Month

USD

LIBOR

+

3.16%

Schedule

of

Investments

Capital

Securities

Fund

See

accompanying

notes.

13

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

Comerica

Inc

5.63%,

07/01/2025

(f),(h)

$

13,000‌

$

14,365‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.29%

Corestates

Capital

III

0.69%,

02/15/2027

(g)

22,771‌

22,196‌

3

Month

USD

LIBOR

+

0.57%

Credit

Agricole

SA

7.88%,

01/23/2024

(f),(h),(i)

2,300‌

2,585‌

USD

Swap

Semi-Annual

5

Year

+

4.90%

8.13%,

12/23/2025

(f),(g),(h),(i)

7,232‌

8,796‌

USD

Swap

Semi-Annual

5

Year

+

6.19%

Credit

Suisse

AG

6.50%,

08/08/2023

(i)

600‌

660‌

Credit

Suisse

Group

AG

4.50%,

09/03/2030

(f),(g),(h),(i)

3,700‌

3,668‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.55%

5.10%,

01/24/2030

(f),(h),(i)

5,000‌

5,145‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.29%

6.25%,

12/18/2024

(f),(g),(h),(i)

1,790‌

1,944‌

USD

Swap

Semi-Annual

5

Year

+

3.46%

6.38%,

08/21/2026

(f),(g),(h),(i)

5,000‌

5,522‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.82%

7.50%,

12/11/2023

(f),(g),(h),(i)

6,250‌

6,883‌

USD

Swap

Semi-Annual

5

Year

+

4.60%

Danske

Bank

A/S

6.13%,

03/28/2024

(f),(h),(i)

6,600‌

7,045‌

USD

Swap

Semi-Annual

7

Year

+

3.90%

Fifth

Third

Bancorp

4.50%,

09/30/2025

(f),(h)

2,200‌

2,382‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.22%

Goldman

Sachs

Group

Inc/The

3.65%,

08/10/2026

(f),(h)

2,000‌

2,015‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.92%

3.80%,

05/10/2026

(f),(h)

3,000‌

3,061‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.97%

4.95%,

02/10/2025

(f),(h)

1,000‌

1,072‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.22%

5.50%,

08/10/2024

(f),(h)

2,000‌

2,188‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.62%

HSBC

Capital

Funding

Dollar

1

LP

10.18%,

06/30/2030

(f),(g),(h)

1,700‌

2,822‌

3

Month

USD

LIBOR

+

4.98%

10.18%,

06/30/2030

(f),(h)

7,300‌

12,118‌

3

Month

USD

LIBOR

+

4.98%

HSBC

Holdings

PLC

6.00%,

05/22/2027

(f),(h),(i)

3,000‌

3,300‌

USD

Swap

Rate

NY

5

Year

+

3.75%

6.38%,

09/17/2024

(f),(h),(i)

1,300‌

1,412‌

USD

Swap

Rate

NY

5

Year

+

3.71%

6.50%,

03/23/2028

(f),(h),(i)

500‌

569‌

USD

Swap

Rate

NY

5

Year

+

3.61%

Huntington

Bancshares

Inc/OH

4.45%,

10/15/2027

(f),(h)

10,200‌

10,914‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

7

Year

+

4.05%

5.63%,

07/15/2030

(f),(h)

8,800‌

10,406‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

10

Year

+

4.95%

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

Huntington

Capital

II

0.74%,

06/15/2028

$

2,400‌

$

2,236‌

3

Month

USD

LIBOR

+

0.63%

Huntington

National

Bank/The

5.50%,

05/06/2030

(h)

2,000‌

2,157‌

3

Month

USD

LIBOR

+

5.09%

ING

Groep

NV

5.75%,

11/16/2026

(f),(h),(i)

7,000‌

7,709‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.34%

6.50%,

04/16/2025

(f),(h),(i)

500‌

556‌

USD

Swap

Semi-Annual

5

Year

+

4.45%

6.75%,

04/16/2024

(f),(h),(i)

10,000‌

10,950‌

USD

Swap

Rate

NY

5

Year

+

4.20%

JPMorgan

Chase

&

Co

3.65%,

06/01/2026

(f),(h)

19,000‌

19,297‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.85%

3.93%,

11/01/2021

(f)

5,000‌

5,034‌

3

Month

USD

LIBOR

+

3.80%

4.60%,

02/01/2025

(f),(h)

2,000‌

2,081‌

Secured

Overnight

Financing

Rate

+

3.13%

6.10%,

10/01/2024

(f),(h)

4,128‌

4,505‌

3

Month

USD

LIBOR

+

3.33%

6.75%,

02/01/2024

(f),(h)

3,706‌

4,090‌

3

Month

USD

LIBOR

+

3.78%

KeyCorp

5.00%,

09/15/2026

(f),(h)

3,875‌

4,350‌

3

Month

USD

LIBOR

+

3.61%

KeyCorp

Capital

I

0.88%,

07/01/2028

2,000‌

1,930‌

3

Month

USD

LIBOR

+

0.74%

KeyCorp

Capital

III

7.75%,

07/15/2029

1,500‌

1,917‌

Lloyds

Bank

PLC

12.00%,

12/16/2024

(f),(g),(h)

3,100‌

3,274‌

3

Month

USD

LIBOR

+

11.76%

12.00%,

12/16/2024

(f),(h)

5,500‌

5,809‌

3

Month

USD

LIBOR

+

11.76%

Lloyds

Banking

Group

PLC

6.41%,

10/01/2035

(f),(g),(h)

1,200‌

1,681‌

3

Month

USD

LIBOR

+

1.50%

7.50%,

06/27/2024

(f),(h),(i)

4,300‌

4,811‌

USD

Swap

Semi-Annual

5

Year

+

4.76%

7.50%,

09/27/2025

(f),(h),(i)

6,250‌

7,231‌

USD

Swap

Semi-Annual

5

Year

+

4.50%

M&T

Bank

Corp

3.50%,

09/01/2026

(f),(h)

4,500‌

4,590‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.68%

5.13%,

11/01/2026

(f),(h)

4,000‌

4,436‌

3

Month

USD

LIBOR

+

3.52%

6.45%,

02/15/2024

(f),(h)

1,300‌

1,433‌

3

Month

USD

LIBOR

+

3.61%

Natwest

Group

PLC

2.47%,

09/30/2027

(f)

1,000‌

990‌

3

Month

USD

LIBOR

+

2.32%

4.60%,

06/28/2031

(f),(h),(i)

10,000‌

10,175‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.10%

6.00%,

12/29/2025

(a),(f),(h),(i)

8,000‌

8,957‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.63%

8.00%,

08/10/2025

(f),(h),(i)

1,000‌

1,179‌

USD

Swap

Semi-Annual

5

Year

+

5.72%

Schedule

of

Investments

Capital

Securities

Fund

See

accompanying

notes.

14

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

Nordea

Bank

Abp

6.13%,

09/23/2024

(f),(g),(h),(i)

$

4,300‌

$

4,733‌

USD

Swap

Semi-Annual

5

Year

+

3.39%

6.63%,

03/26/2026

(f),(g),(h),(i)

13,400‌

15,452‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.11%

Northern

Trust

Corp

4.60%,

10/01/2026

(f),(h)

2,400‌

2,638‌

3

Month

USD

LIBOR

+

3.20%

NTC

Capital

I

0.65%,

01/15/2027

1,250‌

1,220‌

3

Month

USD

LIBOR

+

0.52%

NTC

Capital

II

0.72%,

04/15/2027

1,200‌

1,170‌

3

Month

USD

LIBOR

+

0.59%

PNC

Capital

Trust

C

0.70%,

06/01/2028

3,000‌

2,908‌

3

Month

USD

LIBOR

+

0.57%

Regions

Financial

Corp

5.75%,

06/15/2025

(f),(h)

1,000‌

1,123‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.43%

Skandinaviska

Enskilda

Banken

AB

5.13%,

05/13/2025

(f),(h),(i)

5,000‌

5,350‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.46%

5.63%,

05/13/2022

(f),(h),(i)

200‌

206‌

USD

Swap

Semi-Annual

5

Year

+

3.49%

Societe

Generale

SA

7.38%,

10/04/2023

(f),(g),(h),(i)

5,500‌

5,988‌

USD

Swap

Semi-Annual

5

Year

+

4.30%

7.38%,

09/13/2021

(f),(g),(h),(i)

5,000‌

5,009‌

USD

Swap

Semi-Annual

5

Year

+

6.24%

7.38%,

10/04/2023

(f),(h),(i)

3,000‌

3,266‌

USD

Swap

Semi-Annual

5

Year

+

4.30%

8.00%,

09/29/2025

(f),(g),(h),(i)

3,500‌

4,135‌

USD

Swap

Rate

NY

5

Year

+

5.87%

Standard

Chartered

PLC

7.01%,

07/30/2037

(f),(g),(h)

7,800‌

10,891‌

3

Month

USD

LIBOR

+

1.46%

7.01%,

07/30/2037

(f),(h)

3,600‌

5,026‌

3

Month

USD

LIBOR

+

1.46%

7.50%,

04/02/2022

(f),(g),(h),(i)

3,300‌

3,420‌

USD

Swap

Semi-Annual

5

Year

+

6.30%

7.75%,

04/02/2023

(f),(g),(h),(i)

1,000‌

1,085‌

USD

Swap

Semi-Annual

5

Year

+

5.72%

SVB

Financial

Group

4.00%,

05/15/2026

(f),(h)

5,000‌

5,187‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.20%

4.10%,

02/15/2031

(f),(h)

800‌

828‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

10

Year

+

3.06%

Swedbank

AB

6.00%,

03/17/2022

(f),(h),(i)

4,400‌

4,501‌

USD

Swap

Semi-Annual

5

Year

+

4.11%

Truist

Bank

0.77%,

03/15/2028

2,000‌

1,940‌

3

Month

USD

LIBOR

+

0.65%

0.79%,

05/15/2027

(a)

4,500‌

4,332‌

3

Month

USD

LIBOR

+

0.67%

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Banks

(continued)

Truist

Financial

Corp

4.80%,

09/01/2024

(f),(h)

$

21,120‌

$

22,415‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.00%

4.95%,

09/01/2025

(f),(h)

11,430‌

12,593‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.61%

UBS

Group

AG

3.88%,

06/02/2026

(a),(f),(g),(h),(i)

10,000‌

10,119‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.10%

6.88%,

08/07/2025

(f),(h),(i)

9,200‌

10,523‌

USD

Swap

Semi-Annual

(VS

6

Month)

5

Year

+

4.59%

7.00%,

01/31/2024

(f),(g),(h),(i)

1,400‌

1,535‌

USD

Swap

Semi-Annual

5

Year

+

4.34%

7.00%,

01/31/2024

(f),(h),(i)

5,000‌

5,481‌

USD

Swap

Semi-Annual

(VS

6

Month)

5

Year

+

4.34%

Wells

Fargo

&

Co

3.90%,

03/15/2026

(f),(h)

8,800‌

9,149‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.45%

$

591,623‌

Diversified

Financial

Services

-

6.88%

Ally

Financial

Inc

4.70%,

05/15/2026

(f),(h)

3,900‌

4,105‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.87%

4.70%,

05/15/2028

(f),(h)

1,200‌

1,249‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

7

Year

+

3.48%

American

Express

Co

3.40%,

09/15/2021

(f)

4,500‌

3

Month

USD

LIBOR

+

3.29%

3.55%,

09/15/2026

(f),(h)

6,000‌

6,105‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.85%

Capital

One

Financial

Corp

3.93%,

09/01/2021

(f)

4,000‌

3

Month

USD

LIBOR

+

3.80%

3.95%,

09/01/2026

(f),(h)

10,200‌

10,570‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.16%

Charles

Schwab

Corp/The

4.00%,

12/01/2030

(f),(h)

3,485‌

3,624‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

10

Year

+

3.08%

4.00%,

06/01/2026

(f),(h)

17,000‌

17,893‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.17%

5.38%,

06/01/2025

(f),(h)

9,439‌

10,490‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.97%

7.00%,

02/01/2022

(f),(h)

5,963‌

6,090‌

3

Month

USD

LIBOR

+

4.82%

Depository

Trust

&

Clearing

Corp/The

3.38%,

06/20/2026

(f),(g),(h)

2,500‌

2,584‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.61%

Discover

Financial

Services

6.13%,

06/23/2025

(f),(h)

8,100‌

9,102‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.78%

$

80,312‌

Schedule

of

Investments

Capital

Securities

Fund

See

accompanying

notes.

15

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Electric

-

7.43%

Dominion

Energy

Inc

4.65%,

12/15/2024

(f),(h)

$

23,000‌

$

24,610‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.99%

5.75%,

10/01/2054

(h)

6,775‌

7,464‌

3

Month

USD

LIBOR

+

3.06%

Duke

Energy

Corp

4.88%,

09/16/2024

(f),(h)

19,050‌

20,326‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.39%

Emera

Inc

6.75%,

06/15/2076

(h)

12,500‌

14,832‌

3

Month

USD

LIBOR

+

5.44%

Enel

SpA

8.75%,

09/24/2073

(g),(h)

6,700‌

7,655‌

USD

Swap

Semi-Annual

5

Year

+

5.88%

NextEra

Energy

Capital

Holdings

Inc

2.21%,

10/01/2066

3,341‌

3,157‌

3

Month

USD

LIBOR

+

2.07%

2.24%,

06/15/2067

580‌

546‌

3

Month

USD

LIBOR

+

2.13%

Southern

Co/The

3.75%,

09/15/2051

(h)

1,800‌

1,841‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.92%

4.00%,

01/15/2051

(h)

6,000‌

6,360‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.73%

$

86,791‌

Food

-

0.43%

Dairy

Farmers

of

America

Inc

7.13%,

12/01/2026

(f),(g)

5,000‌

5,050‌

Gas

-

0.87%

NiSource

Inc

5.65%,

06/15/2023

(f),(h)

9,695‌

10,131‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.84%

Hand

&

Machine

Tools

-

0

.19%

Stanley

Black

&

Decker

Inc

4.00%,

03/15/2060

(h)

2,100‌

2,257‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.66%

Insurance

-

20.76%

ACE

Capital

Trust

II

9.70%,

04/01/2030

2,570‌

3,833‌

Allstate

Corp/The

5.75%,

08/15/2053

(h)

9,900‌

10,744‌

3

Month

USD

LIBOR

+

2.94%

American

International

Group

Inc

5.75%,

04/01/2048

(h)

13,077‌

15,094‌

3

Month

USD

LIBOR

+

2.87%

8.18%,

05/15/2068

(h)

6,700‌

9,983‌

3

Month

USD

LIBOR

+

4.20%

Aon

Corp

8.21%,

01/01/2027

1,000‌

1,303‌

Argentum

Netherlands

BV

for

Zurich

Insurance

Co

Ltd

5.13%,

06/01/2048

(h)

2,000‌

2,315‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.27%

AXA

SA

6.38%,

12/14/2036

(f),(g),(h)

4,905‌

6,892‌

3

Month

USD

LIBOR

+

2.26%

8.60%,

12/15/2030

2,400‌

3,640‌

Cloverie

PLC

for

Zurich

Insurance

Co

Ltd

5.63%,

06/24/2046

(h)

12,100‌

14,073‌

3

Month

USD

LIBOR

+

4.92%

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Insurance

(continued)

Equitable

Holdings

Inc

4.95%,

09/15/2025

(f),(h)

$

1,400‌

$

1,522‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.74%

Everest

Reinsurance

Holdings

Inc

2.51%,

05/01/2067

1,600‌

1,512‌

3

Month

USD

LIBOR

+

2.39%

Hartford

Financial

Services

Group

Inc/The

2.25%,

02/12/2067

(g)

1,700‌

1,632‌

3

Month

USD

LIBOR

+

2.13%

Legal

&

General

Group

PLC

5.25%,

03/21/2047

(h)

4,700‌

5,339‌

USD

Swap

Semi-Annual

5

Year

+

3.69%

Liberty

Mutual

Group

Inc

4.13%,

12/15/2051

(g),(h)

2,300‌

2,358‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.32%

7.80%,

03/07/2087

(a),(g)

6,100‌

8,208‌

3

Month

USD

LIBOR

+

3.58%

Liberty

Mutual

Insurance

Co

7.70%,

10/15/2097

(g)

1,100‌

1,752‌

Lincoln

National

Corp

2.17%,

04/20/2067

3,245‌

2,839‌

3

Month

USD

LIBOR

+

2.04%

Meiji

Yasuda

Life

Insurance

Co

5.20%,

10/20/2045

(g),(h)

1,000‌

1,131‌

USD

Swap

Semi-Annual

5

Year

+

4.23%

MetLife

Capital

Trust

IV

7.88%,

12/15/2067

(g)

1,800‌

2,534‌

MetLife

Inc

3.85%,

09/15/2025

(f),(h)

7,200‌

7,560‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.58%

6.40%,

12/15/2066

700‌

900‌

3

Month

USD

LIBOR

+

2.21%

9.25%,

04/08/2068

(g)

10,372‌

15,849‌

3

Month

USD

LIBOR

+

5.54%

10.75%,

08/01/2069

4,300‌

7,611‌

3

Month

USD

LIBOR

+

7.55%

Mitsui

Sumitomo

Insurance

Co

Ltd

7.00%,

03/15/2072

(g),(h)

3,600‌

3,717‌

3

Month

USD

LIBOR

+

5.90%

7.00%,

03/15/2072

(h)

2,500‌

2,581‌

3

Month

USD

LIBOR

+

5.90%

Nationwide

Financial

Services

Inc

6.75%,

05/15/2087

500‌

623‌

Nippon

Life

Insurance

Co

2.75%,

01/21/2051

(g),(h)

4,600‌

4,584‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.65%

5.00%,

10/18/2042

(g),(h)

1,525‌

1,589‌

3

Month

USD

LIBOR

+

4.24%

5.10%,

10/16/2044

(h)

785‌

866‌

USD

Swap

Semi-Annual

5

Year

+

3.65%

Prudential

Financial

Inc

3.70%,

10/01/2050

(h)

6,000‌

6,321‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.04%

5.63%,

06/15/2043

(h)

9,380‌

10,017‌

3

Month

USD

LIBOR

+

3.92%

5.88%,

09/15/2042

(h)

11,000‌

11,550‌

3

Month

USD

LIBOR

+

4.18%

Schedule

of

Investments

Capital

Securities

Fund

See

accompanying

notes.

16

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Insurance

(continued)

Sumitomo

Life

Insurance

Co

3.38%,

04/15/2081

(g),(h)

$

5,000‌

$

5,213‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.75%

6.50%,

09/20/2073

(g),(h)

3,000‌

3,317‌

3

Month

USD

LIBOR

+

4.44%

Swiss

Re

Finance

Luxembourg

SA

5.00%,

04/02/2049

(g),(h)

17,400‌

19,984‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.58%

Voya

Financial

Inc

4.70%,

01/23/2048

(h)

3,300‌

3,492‌

3

Month

USD

LIBOR

+

2.08%

5.65%,

05/15/2053

(h)

10,800‌

11,424‌

3

Month

USD

LIBOR

+

3.58%

6.13%,

09/15/2023

(f),(h)

1,400‌

1,505‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

3.36%

Zurich

Finance

Ireland

Designated

Activity

Co

3.00%,

04/19/2051

(h)

26,800‌

27,055‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.78%

$

242,462‌

Oil

&

Gas

-

0.87%

BP

Capital

Markets

PLC

4.38%,

06/22/2025

(f),(h)

9,500‌

10,118‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.04%

Pipelines

-

4.74%

Enbridge

Inc

5.75%,

07/15/2080

(h)

5,000‌

5,645‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.31%

6.00%,

01/15/2077

(h)

1,500‌

1,661‌

3

Month

USD

LIBOR

+

3.89%

6.25%,

03/01/2078

(h)

11,000‌

12,095‌

3

Month

USD

LIBOR

+

3.64%

Enterprise

Products

Operating

LLC

5.25%,

08/16/2077

(h)

14,881‌

15,544‌

3

Month

USD

LIBOR

+

3.03%

5.38%,

02/15/2078

(h)

1,300‌

1,342‌

3

Month

USD

LIBOR

+

2.57%

Transcanada

Trust

5.50%,

09/15/2079

(h)

12,500‌

13,875‌

Secured

Overnight

Financing

Rate

+

4.42%

5.63%,

05/20/2075

(h)

600‌

650‌

3

Month

USD

LIBOR

+

3.53%

5.88%,

08/15/2076

(h)

4,000‌

4,485‌

3

Month

USD

LIBOR

+

4.64%

$

55,297‌

REITs

-

0.78%

Scentre

Group

Trust

2

4.75%,

09/24/2080

(g),(h)

4,000‌

4,258‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.38%

5.13%,

09/24/2080

(g),(h)

4,500‌

4,848‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

4.69%

$

9,106‌

Sovereign

-

0.27%

CoBank

ACB

6.25%,

10/01/2026

(f),(h)

1,000‌

1,132‌

3

Month

USD

LIBOR

+

4.66%

BONDS

(continued)

Principal

Amount

(000’s)

Value

(000’s)

Sovereign

(continued)

Farm

Credit

Bank

of

Texas

5.70%,

09/15/2025

(f),(g),(h)

$

1,900‌

$

2,062‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

5.42%

$

3,194‌

Telecommunications

-

0.94%

Vodafone

Group

PLC

3.25%,

06/04/2081

(h)

1,000‌

1,016‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.45%

4.13%,

06/04/2081

(h)

9,250‌

9,387‌

US

Treasury

Yield

Curve

Rate

T

Note

Constant

Maturity

5

Year

+

2.77%

7.00%,

04/04/2079

(h)

450‌

556‌

USD

Swap

Semi-Annual

5

Year

+

4.87%

$

10,959‌

Transportation

-

0.49%

BNSF

Funding

Trust

I

6.61%,

12/15/2055

(h)

5,000‌

5,731‌

3

Month

USD

LIBOR

+

2.35%

TOTAL

BONDS

$

1,113,031‌

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

-

0.39%

Principal

Amount

(000's)

Value

(000's)

U.S.

Treasury

-

0.39%

0.25%,

04/15/2023

$

2,500‌

$

2,504‌

0.38%,

03/31/2022

2,000‌

2,003‌

$

4,507‌

TOTAL

U.S.

GOVERNMENT

&

GOVERNMENT

AGENCY

OBLIGATIONS

$

4,507‌

Total

Investments

$

1,156,101‌

Other

Assets

and

Liabilities

- 1.00%

11,653‌

TOTAL

NET

ASSETS

-

100.00%

$

1,167,754‌

(a)

Security

or

a

portion

of

the

security

was

on

loan. At

the

end

of

the

period,

the

value

of

these

securities

totaled

$4,739

or

0.41%

of

net

assets.

(b)

Current

yield

shown

is

as

of

period

end.

(c)

Security

or

a

portion

of

the

security

was

received

as

collateral

for

securities

lending.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$4,883

or

0.42%

of

net

assets.

(d)

Affiliated

Security.

Security

is

either

an

affiliate

(and

registered

under

the

Investment

Company

Act

of

1940,

as

amended,

(the

"1940

Act"))

or

an

affiliate

as

defined

by

the

1940

act

(controls

5.00%

or

more

of

the

outstanding

voting

shares

of

the

security).

Please

see

Affiliated

Securities

sub-schedule

for

transactional

information.

(e)

Non-income

producing

security

(f)

Perpetual

security.

Perpetual

securities

pay

an

indefinite

stream

of

interest,

but

they

may

be

called

by

the

issuer

at

an

earlier

date.

Date

shown,

if

any,

reflects

the

date

or

final

legal

maturity

date.

Rate

shown

is

as

of

period

end.

(g)

Security

exempt

from

registration

under

Rule

144A

of

the

Securities

Act

of

1933.

These

securities

may

be

resold

in

transactions

exempt

from

registration,

normally

to

qualified

institutional

buyers.

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$239,228

or

20.49%

of

net

assets.

(h)

Rate

shown

is

as

of

period

end.

The

rate

may

be

a

variable

or

floating

rate

or

a

fixed

rate

which

may

convert

to

a

variable

or

floating

rate

in

the

future.

(i)

Security

is

a

contingent

convertible

security,

("CoCo").

CoCo's

are

hybrid

debt

securities

that

may

convert

to

equity

or

have

their

principal

written

down

upon

occurrence

of

certain

"triggers".

At

the

end

of

the

period,

the

value

of

these

securities

totaled

$241,953

or

20.72%

of

net

assets.

Schedule

of

Investments

Capital

Securities

Fund

See

accompanying

notes.

17

Portfolio

Summary (unaudited)

Sector

Percent

Financial

80.00‌%

Utilities

8.34‌%

Energy

5.87‌%

Money

Market

Funds

1.45‌%

Government

1

.24‌%

Communications

0.94‌%

Industrial

0.68‌%

Consumer,

Non-cyclical

0.43‌%

Investment

Companies

0.05‌%

Other

Assets

and

Liabilities

1.00‌%

TOTAL

NET

ASSETS

100.00%

Affiliated

Securities

Purchases

Sales

Value

Cost

Proceeds

Value

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

$

30,689‌

$

572,352‌

$

590,959‌

$

12,082‌

$

30,689‌

$

572,352‌

$

590,959‌

$

12,082‌

Income

(a)

Realized

Gain/Loss

on

Investments

Realized

Gain

from

Capital

Gain

Distributions

Change

in

Unrealized

Gain/

Loss

Principal

Government

Money

Market

Fund

-

Institutional

Class

0.00%

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

$

—‌

Amounts

in

thousands.

(a)

Amount

excludes

earnings

from

securities

lending

collateral.

Glossary

to

the

Schedule

of

Investments

See

accompanying

notes.

18

Currency

Abbreviations

USD/$

United

States

Dollar

Financial

Highlights

Principal

Funds,

Inc.

See

accompanying

notes.

20

Selected

data

for

a

share

of

Capital

Stock

outstanding

throughout

each

year

ended

August

31:

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

CAPITAL

SECURITIES

FUND

Class

S

shares

2021

$

10

.36‌

$

0

.46‌

$

0

.43‌

$

0

.89‌

(

$

0

.49‌

)

(

$

0

.49‌

)

$

10

.76‌

2020

10

.17‌

0

.50‌

0

.23‌

0

.73‌

(

0

.54‌

)

(

0

.54‌

)

10

.36‌

2019

9

.95‌

0

.58‌

0

.21‌

0

.79‌

(

0

.57‌

)

(

0

.57‌

)

10

.17‌

2018

10

.40‌

0

.58‌

(

0

.49‌

)

0

.09‌

(

0

.54‌

)

(

0

.54‌

)

9

.95‌

2017

9

.98‌

0

.57‌

0

.36‌

0

.93‌

(

0

.51‌

)

(

0

.51‌

)

10

.40‌

Financial

Highlights

(Continued)

Principal

Funds,

Inc.

See

accompanying

notes.

21

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

8

.77‌

%

$

1,167,754‌

0

.00‌

%

(b)

4

.34‌

%

14

.2‌

%

7

.42‌

846,849‌

0

.00‌

(b)

4

.95‌

14

.0‌

8

.39‌

648,432‌

0

.00‌

(b)

5

.89‌

14

.7‌

0

.87‌

544,446‌

0

.00‌

(b)

5

.67‌

9

.1‌

9

.62‌

457,089‌

0

.00‌

(b)

5

.67‌

8

.4‌

(a)

Calculated

based

on

average

shares

outstanding

during

the

period.

(b)

Reflects

Manager's

contractual

expense

limit.

Report

of

Independent

Registered

Public

Accounting

Firm

22

To

the

Shareholders

and

the

Board

of

Directors

of

Capital

Securities

Fund

Opinion

on

the

Financial

Statements

We

have

audited

the

accompanying

statement

of

assets

and

liabilities

of

Capital

Securities

Fund

(the

fund)

(one

of

the

portfolios

constituting

Principal

Funds,

Inc.

(the

Fund)),

including

the

schedule

of

investments,

as

of

2021,

and

the

of

operations

for

the

year

then

ended,

the

statements

of

changes

in

net

assets

for

each

of

the

two

years

in

the

period

then

ended,

the

financial

highlights

for

each

of

the

five

years

in

the

period

then

ended

and

the

(collectively

referred

to

as

the

“financial

statements”).

In

our

opinion,

the

financial

statements

present

fairly,

in

all

material

respects,

the

financial

position

of

the

fund

(one

of

the

portfolios

constituting

the

Fund)

at

2021,

the

results

of

its

operations

for

the

year

then

ended,

the

changes

in

its

net

assets

for

each

of

the

two

years

in

the

period

then

ended

and

its

financial

highlights

for

each

of

the

five

years

in

the

period

then

ended,

in

conformity

with

U.S.

generally

accepted

accounting

principles.

Basis

for

Opinion

These

financial

statements

are

the

responsibility

of

the

Fund’s

management.

Our

responsibility

is

to

express

an

opinion

on

the

fund’s

financial

statements

based

on

our

audits.

We

are

a

public

accounting

firm

registered

with

the

Public

Company

Accounting

Oversight

Board

(United

States)

(“PCAOB”)

and

are

required

to

be

independent

with

respect

to

the

Fund

in

accordance

with

the

U.S.

federal

securities

laws

and

the

applicable

rules

and

regulations

of

the

Securities

and

Exchange

Commission

and

the

PCAOB.

We

conducted

our

audits

in

accordance

with

the

standards

of

the

PCAOB.

Those

standards

require

that

we

plan

and

perform

the

audit

to

obtain

reasonable

assurance

about

whether

the

financial

statements

are

free

of

material

misstatement,

whether

due

to

error

or

fraud.

The

Fund

is

not

required

to

have,

nor

were

we

engaged

to

perform,

an

audit

of

the

Fund’s

internal

control

over

financial

reporting.

As

part

of

our

audits,

we

are

required

to

obtain

an

understanding

of

internal

control

over

financial

reporting

but

not

for

the

purpose

of

expressing

an

opinion

on

the

effectiveness

of

the

Fund’s

internal

control

over

financial

reporting.

Accordingly,

we

express

no

such

opinion.

Our

audits

included

performing

procedures

to

assess

the

risks

of

material

misstatement

of

the

financial

statements,

whether

due

to

error

or

fraud,

and

performing

procedures

that

respond

to

those

risks.

Such

procedures

included

examining,

on

a

test

basis,

evidence

regarding

the

amounts

and

disclosures

in

the

financial

statements.

Our

procedures

included

confirmation

of

securities

owned

as

of

2021,

by

correspondence

with

the

custodian

and

brokers

or

by

other

appropriate

auditing

procedures

where

replies

from

brokers

were

not

received.

Our

audits

also

included

evaluating

the

accounting

principles

used

and

significant

estimates

made

by

management,

as

well

as

evaluating

the

overall

presentation

of

the

financial

statements.

We

believe

that

our

audits

provide

a

reasonable

basis

for

our

opinion.

We

have

served

as

the

auditor

of

one

or

more

Principal

investment

companies

since

1969.

Minneapolis,

Minnesota

October

21,

Shareholder

Expense

Example

Principal

Funds,

Inc.

(unaudited)

23

As

a

shareholder

of

Capital

Securities

Fund,

you

may

incur

ongoing

costs,

including

management

fees;

distribution

fees;

and

other

fund

expenses.

This

Example

is

intended

to

help

you

understand

your

ongoing

costs

(in

dollars)

of

investing

in

Principal

Funds,

Inc.

and

to

compare

these

costs

with

the

ongoing

costs

of

investing

in

other

mutual

funds.

The

Example

is

based

on

an

investment

of

$1,000

invested

at

the

beginning

of

the

period

and

held

for

the

entire

period

(

to

),

unless

otherwise

noted.

Actual

Expenses

The

first

section

of

the

table

below

provides

information

about

actual

account

values

and

actual

expenses.

You

may

use

the

information

in

this

section,

together

with

the

amount

you

invested,

to

estimate

the

expenses

that

you

paid

over

the

period.

Simply

divide

your

account

value

by

$1,000

(for

example,

an

$8,600

account

value

divided

by

$1,000

=

8.6),

then

multiply

the

result

by

the

number

in

the

first

section

under

the

heading

entitled

“Expenses

Paid

During

Period”

to

estimate

the

expenses

you

paid

on

your

account

during

this

period.

Class

S

shares

may

be

purchased

through

wrap

programs.

Such

plans

may

impose

fees

in

addition

to

those

charge

by

the

fund.

These

fees

are

not

included

in

the

table

below.

If

they

were,

the

estimate

of

expenses

you

paid

during

the

period

would

be

higher,

and

your

ending

account

value

lower,

by

this

amount.

Hypothetical

Example

for

Comparison

Purposes

The

second

section

of

the

table

below

provides

information

about

hypothetical

account

values

and

hypothetical

expenses

based

on

the

fund’s

actual

expense

ratio

and

an

assumed

rate

of

return

of

5%

per

year

before

expenses,

which

is

not

the

fund’s

actual

return.

The

hypothetical

account

values

and

expenses

may

not

be

used

to

estimate

the

actual

ending

account

balance

or

expenses

you

paid

for

the

period.

You

may

use

this

information

to

compare

the

ongoing

costs

of

investing

in

Principal

Funds,

Inc.

and

other

funds.

To

do

so,

compare

this

5%

hypothetical

example

with

the

5%

hypothetical

examples

that

appear

in

the

shareholder

reports

of

the

other

funds.

Please

note

that

the

expenses

shown

in

the

table

are

meant

to

highlight

your

ongoing

costs

only

and

do

not

reflect

any

transaction

costs,

such

as

sales

charges

on

purchase

payments,

contingent

deferred

sales

charges,

redemption

fees

or

exchange

fees.

Therefore,

the

second

section

of

the

table

is

useful

in

comparing

ongoing

costs

only,

and

will

not

help

you

determine

the

relative

total

costs

of

owning

different

funds.

In

addition,

if

these

transaction

costs

were

included,

your

costs

would

have

been

higher.

Actual

Hypothetical

Beginning

Account

Value

Ending

Account

Value

Expenses

Paid

During Period

2021 to

(a)

Beginning

Account

Value

Ending

Account

Value

2021

Expenses

Paid

During Period

2021 to

(a)

Annualized

Expense

Ratio

Capital

Securities

Fund

Class

S

$

1,000.00‌

$

1,040.03‌

$

0.00‌

$

1,000.00‌

$

1,025.21‌

$

0.00‌

%

(a)

Expenses

are

equal

to

a

fund's

annualized

expense

ratio

multiplied

by

the

average

account

value

over

the

period,

multiplied

by

184/365

(to

reflect

the

one-half

year

period).

24

FUND

BOARD

OF

DIRECTORS

AND

OFFICERS

The

Board

of

Directors

(the

“Board”)

has

overall

responsibility

for

overseeing

the

Fund’s

operations

in

accordance

with

the

Investment

Act

of

1940,

as

amended

(the

“1940

Act”),

other

applicable

laws,

and

the

Fund’s

charter.

Each

member

of

the

Board

(“Board

Member”)

serves

on

the

Board

of

the

following

investment

companies

sponsored

by

Principal

Life

Insurance

Company:

Principal

Funds,

Inc.,

Principal

Variable

Funds,

Inc.,

Principal

Exchange-Traded

Funds,

and

Principal

Diversified

Select

Real

Asset

Fund

which

are

collectively

referred

to

as

the

“Fund

Complex”.

Board

Members

that

are

affiliated

persons

of

any

investment

advisor,

the

principal

distributor,

or

the

principal

underwriter

of

the

Fund

Complex

are

considered

“interested

persons”

of

the

Fund

(as

defined

in

the

1940

Act)

and

are

shown

below

as

“Interested

Board

Members”.

Board

Members

who

are

not

Interested

Board

Members

are

shown

below

as

“Independent

Board

Members”.

Each

Board

Member

generally

serves

until

the

meeting

of

stockholders

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.

Officers

serve

at

the

pleasure

of

the

Board,

and

each

officer

has

the

same

position

with

each

investment

company

in

the

Fund

Complex.

INDEPENDENT

BOARD

MEMBERS

Name,

Position

Held

with

the

Fund

Complex,

Year

of

Birth

Principal

Occupation(s)

During

past

5

years

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Director

Other

Directorships

Held

by

Director

During

Past

5

Years

Elizabeth

Ballantine

Director

since

2004

Chair,

Nominating

and

Governance

Committee

1948

Principal,

EBA

Associates

126

Durango

Herald,

Inc.;

McClatchy

Newspapers,

Inc.

Leroy

T.

Barnes,

Jr.

Director

since

2012

Member,

Audit

Committee

Member,

Nominating

and

Governance

Committee

1951

Retired

126

McClatchy

Newspapers,

Inc.;

Frontier

Communications,

Inc.;

formerly,

Herbalife

Ltd.

Craig

Damos

Lead

Independent

Director

since

2020

Director

since

2008

Member,

Nominating

and

Governance

Committee

Member,

Executive

Committee

1954

President,

C.P.

Damos

Consulting

LLC

126

None

Fritz

S.

Hirsch

Director

since

2005

Member,

Operations

Committee

Chair,

15(c)

Committee

1951

Interim

CEO,

MAM

USA:

February

2020

to

October

2020

126

MAM

USA

Victor

Hymes

Director

since

2020

Member,

Audit

Committee

1957

Founder

and

Managing

Member

of

Legato

Capital

Management,

LLC

126

Formerly,

Montgomery

Street

Income

Securities

Inc.

John

D.

Kenney

Director

since

2020

Member,

Operations

Committee

Member,

15(c)

Committee

1965

Formerly,

Legg

Mason

Global

Asset

Management

126

Formerly:

Legg

Mason

Investment

Management

Affiliates:

Brandywine

Global;

Clarion

Partners;

ClearBridge

Investments;

Entrust

Global;

Legg

Mason

Poland;

Martin

Currie

Investment

Management;

Permal

Group

(merged

into

Entrust);

QS

Investors;

RARE

Infrastructure;

Royce

and

Associates;

and

Western

Asset

Management

Padelford

(“Padel”)

L.

Lattimer

Director

since

2020

Member,

Operations

Committee

Member,

15(c)

Committee

1961

TBA

Management

Consulting

LLC

126

None

Karen

(“Karrie”)

McMillan

Director

since

2014

Chair,

Operations

Committee

1961

Founder/Owner,

Tyche

Consulting

LLC

Formerly,

Managing

Director,

Patomak

Global

Partners,

LLC

126

None

25

INTERESTED

BOARD

MEMBERS

Correspondence

intended

for

each

Board

Member

who

is

other

than

an

Interested

Board

Member

may

be

sent

to

655

9th

Street,

Des

Moines,

IA

Name,

Position

Held

with

the

Fund

Complex,

Year

of

Birth

Principal

Occupation(s)

During

past

5

years

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Director

Other

Directorships

Held

by

Director

During

Past

5

Years

Elizabeth

A.

Nickels

Director

since

2015

Chair,

Audit

Committee

Member,

Nominating

and

Governance

Committee

1962

Retired

126

SpartanNash;

Formerly:

Charlotte

Russe;

Follet

Corporation;

PetSmart;

Spectrum

Health

Systems

Mary

M.

(“Meg”)

VanDeWeghe

Director

since

2018

Member,

Audit

Committee

Member,

15(c)

Committee

1959

CEO

and

President,

Forte

Consulting,

Inc.

126

Helmerich

&

Payne;

Formerly:

B/E

Aerospace;

Brown

Advisory;

Denbury

Resources

Inc.;

Nalco

(and

its

successor

Ecolab);

and

WP

Carey

Name,

Position

Held

with

the

Fund

Complex,

Year

of

Birth

Principal

Occupation(s)

During

past

5

years

Number

of

Portfolios

in

Fund

Complex

Overseen

by

Director

Other

Directorships

Held

by

Director

During

Past

5

Years

Timothy

M.

Dunbar

Chair

and

Director

since

2019

Chair,

Executive

Committee

1957

President-Principal

Global

Asset

Management

(“PGAM”),

Principal

Global

Investors,

LLC

(“PGI”)

since

2018

Director,

PGI

(2018-2020)

Division

President,

Principal

Financial

Services,

Inc.

(“PFSI)

and

Principal

Life

Insurance

Company

(“PLIC”)

(2020–2021)

Executive

Vice

President

and

Chief

Investment

Officer,

PFSI

and

PLIC

(2014-2018)

President

–

PGAM,

PFSI

and

PLIC

(2018-2020)

Director,

Post

Advisory

Group,

LLC

(“Post”)

(2018-

2020)

Chair

and

Executive

Vice

President,

RobustWealth,

Inc.

(2018-2020)

126

None

Patrick

G.

Halter

Member,

Executive

Committee

Director

since

2017

1959

Chair,

PGI

since

2018

Chief

Executive

Officer

and

President,

PGI

since

2018

Chief

Operating

Officer,

PGI

(2017-2018)

Director,

PGI

(2003-2018)

Director,

Origin

Asset

Management

LLP

(2018-

2019)

President,

PGAM,

PFSI,

and

PLIC

since

2020

Director,

Post

since

2017

Chair,

Principal

Real

Estate

Investors,

LLC

(“PREI”)

since

2004

President

and

Chief

Executive

Officer,

PGI,

PREI

since

2018

Chief

Executive

Officer,

PREI

(2005-2018)

Chair,

Spectrum

Asset

Management,

Inc.

(“Spectrum”)

since

2017

126

None

26

FUND

COMPLEX

OFFICERS

Name,

Position

Held

with

the

Fund

Complex,

Address,

and

Year

of

Birth

Principal

Occupation(s)

During

past

5

years

Kamal

Bhatia

President

and

Chief

Executive

Officer

Des

Moines,

IA

1972

Director,

PGI

since

2019

President-Principal

Funds,

PGI

since

2019

Principal

Executive

Officer,

OPC

Private

Capital

(2017-2019)

Senior

Vice

President,

OppenheimerFunds

(2011-

2019)

Director,

Principal

Funds

Distributor,

Inc.

(“PFD”)

since

2019

Senior

Executive

Director

and

Chief

Operating

Officer,

PFSI

and

PLIC

since

2020

President,

PFSI

and

PLIC

(2019-2020)

Director,

Post

since

2020

Director,

PREI

since

2020

Chair

and

Executive

Vice

President,

(Principal

Shareholder

Services,

Inc.

(“PSS’)

since

2019

Randy

D.

Bolin

Assistant

Tax

Counsel

Des

Moines,

IA

1961

Vice

President

and

Associate

General

Counsel,

PGI

since

2016

Vice

President

and

Associate

General

Counsel,

PFSI

since

2013

Vice

President

and

Associate

General

Counsel,

PLIC

since

2013

Beth

Graff

Vice

President

and

Assistant

Controller

Des

Moines,

IA

1968

Director

–

Fund

Accounting

since

2016

Gina

L.

Graham

Treasurer

Des

Moines,

IA

1965

Vice

President

and

Treasurer,

PGI

since

2016

Vice

President

and

Treasurer,

PFD

since

2016

Vice

President

and

Treasurer,

PFSI

since

2016

Vice

President

and

Treasurer,

PLIC

since

2016

Vice

President

and

Treasurer,

PREI

since

2017

Vice

President

and

Treasurer,

Principal

Securities,

Inc.

(“PSI”)

since

2016

Vice

President

and

Treasurer,

PSS

since

2016

Vice

President

and

Treasurer,

RobustWealth,

Inc.

since

2018

Megan

Hoffmann

Vice

President

and

Controller

Des

Moines,

IA

1979

Director

–

Accounting,

PLIC

since

2020

Assistant

Director

–

Accounting,

PLIC

(2017-2020)

Prior

thereto,

Senior

Accounting

Analyst,

PLIC

Laura

B.

Latham

Assistant

Counsel

and

Assistant

Secretary

Des

Moines,

IA

1986

Counsel,

PGI

since

2018

Counsel,

PLIC

since

2018

Prior

thereto,

Attorney

in

Private

Practice

Diane

K.

Nelson

AML

Officer

Des

Moines,

IA

1965

Chief

Compliance

Officer/AML

Officer,

PSS

since

2015

Tara

Parks

Vice

President

and

Assistant

Controller

Des

Moines,

IA

1983

Director

–

Accounting,

PLIC

since

2019

Tax

Manager

–

ALPS

Fund

Services

(2011-2019)

Sara

L.

Reece

Vice

President

and

Chief

Operating

Officer

Des

Moines,

IA

1975

Vice

President

and

Controller

(2016-2021)

Managing

Director

–

Global

Funds

Ops,

PLIC

since

2021

Managing

Director

–

Financial

Analysis/

Planning,

PLIC

(2021)

Director

-

Accounting,

PLIC

(2015-2021)

27

Name,

Position

Held

with

the

Fund

Complex,

Address,

and

Year

of

Birth

Principal

Occupation(s)

During

past

5

years

Teri

R.

Root

Chief

Compliance

Officer

Des

Moines,

IA

1979

Chief

Compliance

Officer

–

Funds,

PGI

since

2018

Interim

Chief

Compliance

Officer

(2018)

Deputy

Chief

Compliance

Officer,

PGI

(2015-2018)

Vice

President

and

Chief

Compliance

Officer,

PMC

(2015–2017)

Vice

President,

PSS

since

2015

Michael

Scholten

Chief

Financial

Officer

Secretary

Des

Moines,

IA

1979

Chief

Financial

Officer

–

PFD

since

2016

Assistant

Vice

President

and

Actuary,

PLIC

since

2021

Chief

Financial

Officer

–

Funds/Platforms,

PLIC

since

2015

Chief

Financial

Officer,

PSS

since

2015

Britney

L.

Schnathorst

Assistant

Counsel

and

Assistant

Secretary

Des

Moines,

IA

1981

Counsel,

PGI

since

2018

Counsel,

PLIC

since

2013

Adam

U.

Shaikh

Assistant

Counsel

Des

Moines,

IA

1972

Assistant

General

Counsel,

PGI

since

2018

Counsel,

PGI

(2017-2018)

Counsel,

PLIC

since

2006

Counsel,

PMC

(2007-2017)

John

L.

Sullivan

Assistant

Counsel

and

Assistant

Secretary

Des

Moines,

IA

1970

Counsel,

PGI

since

2020

Counsel,

PLIC

since

2019

Prior

thereto,

Attorney

in

Private

Practice

Dan

L.

Westholm

Assistant

Treasurer

Des

Moines,

IA

1966

Assistant

Vice

President

and

Treasurer,

PGI

since

2013

Assistant

Vice

President-Treasury,

PFD

since

2013

Assistant

Vice

President-Treasury,

PLIC

since

2014

Assistant

Vice

President-Treasury,

PSI

since

2013

Assistant

Vice

President-Treasury,

PSS

since

2013

Beth

C.

Wilson

Vice

President

and

Secretary

Des

Moines,

IA

1956

Director

and

Secretary

–

Funds,

PLIC

since

2007

Clint

L.

Woods

Vice

President,

Counsel

and

Assistant

Secretary

Des

Moines,

IA

1961

Of

Counsel

(2017-2018)

Vice

President

(2016-2017)

Counsel

(2015-2017)

Vice

President,

Associate

General

Counsel

and

Secretary,

PGI

since

2020

Vice

President,

Associate

General

Counsel,

Governance

Officer,

and

Assistant

Corporate

Secretary,

PGI

(2018-2020)

Vice

President,

Associate

General

Counsel

and

Assistant

Corporate

Secretary,

PFD

since

2019

Vice

President,

Associate

General

Counsel,

Governance

Officer

and

Assistant

Corporate

Secretary,

PFSI

since

2019

Vice

President,

Associate

General

Counsel,

Governance

Officer

and

Assistant

Corporate

Secretary,

PLIC

since

2015

Secretary,

Post

since

2020

Vice

President,

Associate

General

Counsel,

Governance

Officer

and

Secretary,

PREI

since

2020

Vice

President,

Associate

General

Counsel,

Governance

Officer

and

Assistant

Corporate

Secretary,

PREI

(2020)

Vice

President,

Associate

General

Counsel

and

Assistant

Corporate

Secretary,

PSI

since

2019

Vice

President,

Associate

General

Counsel

and

Assistant

Corporate

Secretary,

PSS

since

2019

Vice

President,

Associate

General

Counsel

and

Assistant

Secretary,

RobustWealth,

Inc.

since

2019

Secretary,

Spectrum

since

2020

28

The

15(c)

Committee’s

primary

purpose

is

to

assist

the

Board

in

performing

the

annual

review

of

the

Fund’s

advisory

and

sub-advisory

agreements

pursuant

to

Section

15(c)

of

the

1940

Act.

The

Committee

responsibilities

include

requesting

and

reviewing

The

Audit

Committee’s

primary

purpose

is

to

assist

the

Board

by

serving

as

an

independent

and

objective

party

to

monitor

the

Fund

Complex’s

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

Fund

Complex’s

financial

statements;

2)

the

Fund

Complex’s

compliance

with

certain

legal

and

regulatory

requirements;

3)

the

independent

registered

public

accountants’

qualifications

and

independence;

and

4)

the

performance

of

the

Fund

Complex’s

independent

registered

public

accountants.

The

Audit

Committee

also

provides

an

open

avenue

of

communication

among

the

independent

registered

public

accountants,

the

Manager’s

internal

auditors,

Fund

Complex

management,

and

the

Board.

The

Executive

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

Fund

Complex's

business

except

the

power

to

1)

issue

stock,

except

as

permitted

by

law;

2)

recommend

to

the

stockholders

any

action

which

requires

stockholder

approval;

3)

amend

the

bylaws;

or

4)

approve

any

merger

or

share

exchange

which

does

not

require

stockholder

approval.

The

Nominating

and

Governance

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

Fund

Complex.

Recommendations

should

be

submitted

in

writing

to

the

Principal

Funds

Complex

Secretary,

in

care

of

the

Principal

Funds

Complex,

711

High

Street,

Des

Moines,

IA

https://www.principalglobal.com/documentdownload/160950.

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

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

Fund

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.

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

Fund

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

Committee

meets

with

nominees

and

conducts

a

reference

check.

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.

The

Operations

Committee’s

primary

purpose

is

to

oversee

the

provision

of

administrative

and

distribution

services

to

the

Funds

Complex,

communications

with

the

Fund

Complex’s

shareholders,

and

review

and

oversight

of

the

Fund

Complex’s

operations.

Additional

information

about

the

Fund

is

available

in

the

Prospectus

dated

and

as

supplemented,

and

the

Statement

of

Additional

Information

dated

and

as

supplemented.

These

documents

may

be

obtained

free

of

charge

by

writing

Principal

Funds,

Inc.,

P.O.

Box

8024,

Boston,

MA

02266-8024

or

telephoning

1-800-222-5852.

The

prospectus

may

be

viewed

at

www.

PrincipalFunds.com/prospectuses.

Name,

Position

Held

with

the

Fund

Complex,

Address,

and

Year

of

Birth

Principal

Occupation(s)

During

past

5

years

Jared

A.

Yepsen

Assistant

Tax

Counsel

Des

Moines,

IA

1981

Counsel,

PGI

(2017-2019)

Counsel,

PLIC

since

2015

29

PROXY

VOTING

POLICIES

A

description

of

the

policies

and

procedures

the

Fund

uses

to

determine

how

to

vote

proxies

relating

to

portfolio

securities

and

the

results

of

the

proxy

votes

for

the

most

recent

twelve

months

ended

June

30

may

be

obtained

free

of

charge

by

telephoning

1-800-222-5852,

or

on

the

SEC

at

www.sec.gov.

SCHEDULES

OF

INVESTMENTS

The

Fund

files

complete

schedules

of

investments

with

the

Securities

and

Exchange

Commission

for

the

first

and

third

quarters

of

each

fiscal

year

as

an

exhibit

to

its

reports

on

Form

N-PORT.

The

Fund’s

Form

N-PORT

reports

are available

on the

Commission’s

at

www.

sec.gov and

www.PrincipalFunds.com.

STATEMENT

REGARDING

LIQUIDITY

RISK

MANAGEMENT

PROGRAM

The

Board

of

Directors

of

Principal

Funds,

Inc.

(the

“Board”)

met

on

9,

to

review

the

liquidity

risk

management

program

(the

“Program”)

applicable

to

all

series

of

the

Principal

Funds,

Inc.,

excluding

the

money

market

funds

(each,

a

“Fund”),

pursuant

to

Rule

22e-

4

under

the

Investment

Company

Act

of

1940,

as

amended

(the

“Liquidity

Rule”)

for

the

period

from

through

(the

“Reporting

Period”).

At

the

meeting,

the

committee

designated

by

the

Board

to

administer

the

Program,

the

Liquidity

Risk

Management

Committee

(the

“Committee”),

addressed

the

operation,

adequacy

and

effectiveness

of

the

Program,

the

operation

of

each

Fund’s

highly

liquid

investment

minimum,

where

applicable,

and

any

material

changes

made

to

the

Program

during

the

Reporting

Period.

The

Committee

noted

key

factors

it

considered

when

assessing,

managing

and

reviewing

each

Fund’s

liquidity

risk.

Such

factors

included

each

Fund’s

investment

strategy

and

liquidity

of

portfolio

investments

during

both

normal

and

reasonably

foreseeable

stressed

conditions,

including

(a) whether

the

Fund’s

investment

strategy

is

appropriate

for

an

open-end

fund,

(b)

the

extent

to

which

the

strategy

involves

a

relatively

concentrated

portfolio

or

large

positions

in

particular

issuers,

and

(c)

the

use

of

borrowings

for

investment

purposes

and

use

of

leveraged

derivatives

and

financial

commitment

obligations;

short-term

and

long-term

cash

flow

projections

during

both

normal

and

reasonably

foreseeable

stressed

conditions;

holdings

of

cash

and

cash

equivalents,

as

well

as

borrowing

arrangements

and

other

funding

sources;

and

each

Fund’s

shareholder

ownership

concentration.

There

were

no

material

changes

to

the

Program

during

the

Reporting

Period.

The

Committee

concluded,

based

on

the

operation

of

the

functions

as

described

in

the

Report

that

the

Program

is

operating

as

intended

and

is

effective

in

implementing

the

requirements

of

the

Liquidity

Rule.

Federal

Income

Tax

Information

Principal

Funds,

Inc.

(unaudited)

30

Dividends

Received

Deduction

(“DRD”).

For

corporate

shareholders,

the

fund

designates

the

following

as

a

percentage

of

taxable

ordinary

income

distributions

(dividend

income

and

short-term

gains,

if

any),

or

up

to

the

maximum

amount

allowable,

as

DRD

eligible

for

the

calendar

year

ended

Qualified

Dividend

Income

(“QDI”).

Certain

dividends

paid

by

the

fund

may

be

subject

to

a

maximum

tax

rate

of

20%.

The

fund

designates

the

following

as

a

percentage

of

taxable

ordinary

income

distributions

(dividend

income

and

short-term

gains,

if

any),

or

up

to

the

maximum

amount

allowable,

as

QDI

eligible

for

the

calendar

year

ended

Section

163(j)

Interest

Dividends.

The

fund

below

intends

to

pass

through

Section

163(j)

Interest

Dividends

as

defined

in

Proposed

Treasury

Regulation

§1.163(j)-1(b).The

fund

designates

the

following

as

a

percentage

of

taxable

ordinary

income

distributions

(dividend

income

and

short-term

gains,

if

any),

or

up

to

the

maximum

amount

allowable,

as

QDI

eligible

for

the

calendar

year

ended