0000898745-23-000008.txt : 20230112 0000898745-23-000008.hdr.sgml : 20230112 20230112112717 ACCESSION NUMBER: 0000898745-23-000008 CONFORMED SUBMISSION TYPE: 497 PUBLIC DOCUMENT COUNT: 1 FILED AS OF DATE: 20230112 DATE AS OF CHANGE: 20230112 EFFECTIVENESS DATE: 20230112 FILER: COMPANY DATA: COMPANY CONFORMED NAME: PRINCIPAL FUNDS, INC. CENTRAL INDEX KEY: 0000898745 IRS NUMBER: 000000000 STATE OF INCORPORATION: MD FISCAL YEAR END: 1031 FILING VALUES: FORM TYPE: 497 SEC ACT: 1933 Act SEC FILE NUMBER: 033-59474 FILM NUMBER: 23525320 BUSINESS ADDRESS: STREET 1: 711 HIGH STREET CITY: DES MOINES STATE: IA ZIP: 50392 BUSINESS PHONE: 515-235-1209 MAIL ADDRESS: STREET 1: PRINCIPAL FINANCIAL GROUP CITY: DES MOINES STATE: IA ZIP: 50392 FORMER COMPANY: FORMER CONFORMED NAME: PRINCIPAL FUNDS, INC DATE OF NAME CHANGE: 20211220 FORMER COMPANY: FORMER CONFORMED NAME: PRINCIPAL FUNDS INC DATE OF NAME CHANGE: 20080616 FORMER COMPANY: FORMER CONFORMED NAME: PRINCIPAL INVESTORS FUND INC DATE OF NAME CHANGE: 20001012 0000898745 S000006952 Core Plus Bond Fund fka Bond & Mortgage Securities Fund C000018956 R-1 PBOMX C000018958 R-3 PBMMX C000018959 R-5 PBMPX C000018960 R-4 PBMSX C000018961 Institutional Class PMSIX C000018962 J Class PBMJX C000018963 A Class PRBDX 0000898745 S000006992 Diversified International Fund C000019052 R-1 PDVIX C000019054 R-3 PINRX C000019055 R-5 PINPX C000019056 R-4 PINLX C000019057 Institutional Class PIIIX C000019058 Class J PIIJX C000019059 Class A PRWLX C000210673 Class R-6 PDIFX 0000898745 S000006996 High Income Fund (f/k/a High Yield Fund I) C000019079 Institutional Class PYHIX 0000898745 S000006997 Inflation Protection Fund C000019081 R-3 PIFPX C000019082 R-5 PBPPX C000019083 R-4 PIFSX C000019084 R-1 PISPX C000019085 Class J PIPJX C000019086 Institutional Class PIPIX 0000898745 S000007013 Global Emerging Markets Fund (f/k/a International Emerging Markets Fund) C000019140 R-3 PEAPX C000019141 R-4 PESSX C000019142 R-5 PEPSX C000019143 R-1 PIXEX C000019144 Institutional Class PIEIX C000019145 Class J PIEJX C000019146 Class A PRIAX C000175481 R-6 PIIMX 0000898745 S000007016 LargeCap S&P 500 Index Fund C000019167 R-1 PLPIX C000019169 R-3 PLFMX C000019170 R-5 PLFPX C000019171 R-4 PLFSX C000019172 Institutional Class PLFIX C000019173 Class J PSPJX C000019174 Class A PLSAX C000038779 Class C PLICX 0000898745 S000007075 MidCap Fund (f/k/a MidCap Blend Fund) C000019310 R-1 PMSBX C000019312 R-3 PMBMX C000019313 R-5 PMBPX C000019314 R-4 PMBSX C000019315 Institutional Class PCBIX C000019316 Class J PMBJX C000019317 Class A PEMGX C000038781 Class C PMBCX C000175482 R-6 PMAQX 0000898745 S000007077 LargeCap Growth Fund I C000019326 R-1 PCRSX C000019328 R-3 PPUMX C000019329 R-5 PPUPX C000019330 R-4 PPUSX C000019331 Institutional Class PLGIX C000019332 Class J PLGJX C000019333 Class A PLGAX C000149257 R-6 PLCGX 0000898745 S000007078 MidCap Growth Fund C000019336 R-3 PFPPX C000019337 R-5 PHPPX C000019338 R-4 PIPPX C000019339 R-1 PMSGX C000019340 Institutional Class PGWIX C000019341 Class J PMGJX 0000898745 S000007079 MidCap S&P 400 Index Fund C000019342 R-1 PMSSX C000019343 Institutional Class MPSIX C000019345 R-3 PMFMX C000019346 R-5 PMFPX C000019347 R-4 PMFSX C000019348 Class J PMFJX C000175483 R-6 PMAPX 0000898745 S000007081 Money Market Fund C000019362 Class J PMJXX C000019363 Class A PCSXX 0000898745 S000007083 International Fund I C000019372 R-3 PRPPX C000019373 R-5 PTPPX C000019374 R-4 PUPPX C000019375 R-1 PPISX C000019376 Institutional Class PINIX C000175484 R-6 PIIDX 0000898745 S000007122 LargeCap Value Fund III C000019458 R-1 PESAX C000019460 R-3 PPSFX C000019461 R-5 PPSRX C000019462 R-4 PPSSX C000019463 Institutional Class PLVIX C000019464 Class J PLVJX 0000898745 S000007125 MidCap Growth Fund III C000019479 R-1 PHASX C000019481 R-3 PPQMX C000019482 R-5 PPQPX C000019483 R-4 PPQSX C000019484 Institutional Class PPIMX C000019485 Class J PPQJX 0000898745 S000007169 SmallCap Value Fund II C000019585 R-3 PJARX C000019586 R-5 PLARX C000019587 R-4 PSTWX C000019588 R-1 PCPTX C000019589 Institutional Class PPVIX C000076717 Class J PSMJX C000149259 R-6 PSMVX 0000898745 S000007173 MidCap Value Fund I C000019614 R-3 PMPRX C000019615 R-5 PABVX C000019616 R-4 PABWX C000019617 R-1 PLASX C000019618 Institutional Class PVMIX C000076718 Class J PVEJX C000210674 A PCMVX C000210675 Class R-6 PCMSX 0000898745 S000007175 SmallCap Growth Fund I C000019625 R-1 PNASX C000019627 R-3 PPNMX C000019628 R-5 PPNPX C000019629 R-4 PPNSX C000019630 Institutional Class PGRTX C000019631 Class J PSIJX C000149260 R-6 PCSMX 0000898745 S000007201 Principal LifeTime 2010 Fund C000019699 R-1 PVASX C000019701 R-3 PTAMX C000019702 R-5 PTAPX C000019703 R-4 PTASX C000019704 Institutional Class PTTIX C000019705 Class J PTAJX C000019706 Class A PENAX 0000898745 S000007203 SmallCap S&P 600 Index Fund C000019714 R-1 PSAPX C000019716 R-3 PSSMX C000019717 R-5 PSSPX C000019718 R-4 PSSSX C000019719 Institutional Class PSSIX C000019720 Class J PSSJX C000175485 R-6 PSPIX 0000898745 S000007207 Principal LifeTime 2020 Fund C000019740 R-1 PWASX C000019742 R-3 PTBMX C000019743 R-5 PTBPX C000019744 R-4 PTBSX C000019745 Institutional Class PLWIX C000019746 Class J PLFJX C000019747 Class A PTBAX 0000898745 S000007208 Principal LifeTime 2030 Fund C000019749 R-1 PXASX C000019751 R-3 PTCMX C000019752 R-5 PTCPX C000019753 R-4 PTCSX C000019754 Institutional Class PMTIX C000019755 Class J PLTJX C000019756 Class A PTCAX 0000898745 S000007209 Principal LifeTime 2040 Fund C000019758 R-1 PYASX C000019760 R-3 PTDMX C000019761 R-5 PTDPX C000019762 R-4 PTDSX C000019763 Institutional Class PTDIX C000019764 Class J PTDJX C000019765 Class A PTDAX 0000898745 S000007210 Principal LifeTime 2050 Fund C000019767 R-1 PZASX C000019770 R-3 PTERX C000019771 R-5 PTEFX C000019772 R-4 PTESX C000019773 Institutional Class PPLIX C000019774 Class J PFLJX C000019775 Class A PPEAX 0000898745 S000007211 Principal LifeTime Strategic Income Fund C000019776 R-1 PLAIX C000019779 R-3 PLSMX C000019780 R-5 PLSPX C000019781 R-4 PLSSX C000019782 Institutional Class PLSIX C000019783 Class J PLSJX C000019784 Class A PALTX 0000898745 S000007212 Real Estate Securities Fund C000019785 R-1 PRAEX C000019787 R-3 PRERX C000019788 R-5 PREPX C000019789 R-4 PRETX C000019790 Institutional Class PIREX C000019791 Class J PREJX C000019792 Class A PRRAX C000038802 Class C PRCEX C000175486 R-6 PFRSX 0000898745 S000007214 SmallCap Fund (fka SmallCap Blend Fund) C000019802 R-1 PSABX C000019804 R-3 PSBMX C000019805 R-5 PSBPX C000019806 R-4 PSBSX C000019807 Institutional Class PSLIX C000019808 Class J PSBJX C000019809 Class A PLLAX C000038804 Class C PSMCX C000175487 R-6 PSMLX 0000898745 S000014232 California Municipal Fund C000038715 Class A SRCMX C000038717 Class C SRCCX C000153061 Institutional PCMFX 0000898745 S000014233 Strategic Asset Management Conservative Balanced Portfolio C000038718 Class A SAIPX C000038720 Class C SCIPX C000038721 Institutional Class PCCIX C000039337 R-3 PCBPX C000039338 R-1 PCSSX C000039339 R-4 PCBLX C000039340 R-5 PCBFX C000039341 Class J PCBJX 0000898745 S000014234 Strategic Asset Management Conservative Growth Portfolio C000038722 Class A SAGPX C000038724 Class C SCGPX C000038725 Institutional Class PCWIX C000039342 R-4 PCWSX C000039343 R-5 PCWPX C000039344 Class J PCGJX C000039346 R-3 PCGPX C000039347 R-1 PCGGX 0000898745 S000014235 Strategic Asset Management Flexible Income Portfolio C000038726 Class A SAUPX C000038728 Class C SCUPX C000038729 Institutional Class PIFIX C000039349 R-3 PFIPX C000039350 R-1 PFIGX C000039351 R-4 PFILX C000039352 R-5 PFIFX C000039353 Class J PFIJX 0000898745 S000014236 Strategic Asset Management Strategic Growth Portfolio C000038730 Class A SACAX C000038732 Class C SWHCX C000038733 Institutional Class PSWIX C000039355 R-3 PSGPX C000039356 R-1 PSGGX C000039357 R-4 PSGLX C000039358 R-5 PSGFX C000039359 Class J PSWJX 0000898745 S000014237 Tax-Exempt Bond Fund formerly Tax-Exempt Bond Fund I C000038734 Class A PTEAX C000038736 Class C PTBCX C000158782 Institutional Class PITEX 0000898745 S000014238 Principal Capital Appreciation Fund (fka West Coast Equity Fund) C000038737 Class A CMNWX C000038739 Class C CMNCX C000038740 Institutional Class PWCIX C000085758 R-1 PCAMX C000085760 R-3 PCAOX C000085761 R-4 PCAPX C000085762 R-5 PCAQX 0000898745 S000014240 Equity Income Fund formerly Equity Income Fund I C000038744 Class A PQIAX C000038746 Class C PEUCX C000038747 Institutional Class PEIIX C000085763 R-1 PIEMX C000085765 R-3 PEIOX C000085766 R-4 PEIPX C000085767 R-5 PEIQX C000204702 Class J PEIJX 0000898745 S000014241 High Yield Fund C000038748 Class A CPHYX C000038750 Class C CCHIX C000038751 Institutional Class PHYTX C000175488 R-6 PHYFX 0000898745 S000014242 Core Fixed Income Fund (f/k/a Income Fund) C000038752 Class A CMPIX C000038754 Class C CNMCX C000038755 Institutional Class PIOIX C000080382 Class J PIOJX C000085768 R-5 PIOQX C000085769 R-1 PIOMX C000085771 R-3 PIOOX C000085772 R-4 PIOPX C000149261 R-6 PICNX 0000898745 S000014244 Government & High Quality Bond Fund (f/k/a Mortgage Securities Fund) C000038760 Class A CMPGX C000038763 Institutional Class PMRIX C000113840 R-1 PMGRX C000113842 R-3 PRCMX C000113843 R-4 PMRDX C000113844 R-5 PMREX C000113845 Class J PMRJX 0000898745 S000014245 Short-Term Income Fund C000038764 Class A SRHQX C000038766 Class C STCCX C000038767 Institutional Class PSHIX C000090493 Class J PSJIX C000090494 R-1 PSIMX C000090496 R-3 PSIOX C000090497 R-4 PSIPX C000090498 R-5 PSIQX 0000898745 S000014246 Strategic Asset Management Balanced Portfolio C000038768 Class A SABPX C000038770 Class C SCBPX C000038771 Institutional Class PSBIX C000039361 R-3 PBAPX C000039362 R-1 PSBGX C000039363 R-4 PSBLX C000039364 R-5 PSBFX C000039365 Class J PSAJX 0000898745 S000019119 Global Real Estate Securities Fund C000052887 Class A POSAX C000052889 Institutional Class POSIX C000149262 R-6 PGRSX C000167005 R-3 PGRKX C000167006 R-4 PGRVX C000167007 R-5 PGRUX 0000898745 S000022103 Principal LifeTime 2015 Fund C000063423 Institutional Class LTINX C000063424 R-3 LTAPX C000063425 R-1 LTSGX C000063426 R-5 LTPFX C000063427 R-4 LTSLX 0000898745 S000022104 Principal LifeTime 2025 Fund C000063428 R-4 LTEEX C000063429 Institutional Class LTSTX C000063431 R-3 LTVPX C000063432 R-1 LTSNX C000063433 R-5 LTPDX 0000898745 S000022105 Principal LifeTime 2035 Fund C000063435 R-3 LTAOX C000063436 R-1 LTANX C000063437 R-5 LTPEX C000063438 R-4 LTSEX C000063439 Institutional Class LTIUX 0000898745 S000022106 Principal LifeTime 2045 Fund C000063441 R-3 LTRVX C000063442 R-1 LTRGX C000063443 R-5 LTRDX C000063444 R-4 LTRLX C000063445 Institutional Class LTRIX 0000898745 S000022107 Principal LifeTime 2055 Fund C000063447 R-3 LTFDX C000063448 R-1 LTFGX C000063449 R-5 LTFPX C000063450 R-4 LTFLX C000063451 Institutional Class LTFIX 0000898745 S000023512 Overseas Fund (f/k/a International Value Fund I) C000069149 Institutional Class PINZX C000111519 R-1 Class PINQX C000111521 R-3 Class PINTX C000111522 R-4 Class PINUX 0000898745 S000024296 Diversified Income Fund (f/k/a Global Diversified Income Fund) C000071805 Institutional Class PGDIX C000071807 Class A PGBAX C000071808 Class C PGDCX C000190075 R-6 PGBLX 0000898745 S000039873 Principal LifeTime 2060 Fund C000123721 Class J PLTAX C000123722 R-1 PLTRX C000123724 R-3 PLTCX C000123725 R-4 PLTMX C000123726 R-5 PLTOX C000123727 Institutional Class PLTZX 0000898745 S000046553 Principal LifeTime Hybrid Income Fund C000145302 Institutional Class PHTFX C000159884 R-6 PLTYX C000199315 Class J PHJFX 0000898745 S000046554 Principal LifeTime Hybrid 2055 Fund C000145305 Institutional Class PLTNX C000159885 R-6 PLHTX C000199316 Class J PHJBX 0000898745 S000046555 Principal LifeTime Hybrid 2060 Fund C000145308 Institutional Class PLTHX C000159886 R-6 PLKTX C000199317 Class J PHJGX 0000898745 S000046556 Principal LifeTime Hybrid 2015 Fund C000145311 Institutional Class PHTMX C000159887 R-6 PLRRX C000199318 Class J PHJMX 0000898745 S000046557 Principal LifeTime Hybrid 2020 Fund C000145314 Institutional Class PHTTX C000159888 R-6 PLTTX C000199319 Class J PHJTX 0000898745 S000046558 Principal LifeTime Hybrid 2025 Fund C000145317 Institutional Class PHTQX C000159889 R-6 PLFTX C000199320 Class J PHJQX 0000898745 S000046559 Principal LifeTime Hybrid 2030 Fund C000145320 Institutional Class PHTNX C000159890 R-6 PLZTX C000199321 Class J PHJNX 0000898745 S000046560 Principal LifeTime Hybrid 2035 Fund C000145323 Institutional Class PHTJX C000159891 R-6 PLRTX C000199322 Class J PHJJX 0000898745 S000046561 Principal LifeTime Hybrid 2040 Fund C000145326 Institutional Class PLTQX C000159892 R-6 PLMTX C000199323 Class J PHJEX 0000898745 S000046562 Principal LifeTime Hybrid 2045 Fund C000145329 Institutional Class PHTYX C000159893 R-6 PLNTX C000199324 Class J PHJYX 0000898745 S000046563 Principal LifeTime Hybrid 2050 Fund C000145332 Institutional Class PHTUX C000159894 R-6 PLJTX C000199325 Class J PHJUX 0000898745 S000054330 Finisterre Emerging Markets Total Return Bond Fund C000170736 Institutional Class PFUMX 0000898745 S000058847 Principal LifeTime 2065 C000193001 Institutional Class PLJIX C000193002 R-1 PLJAX C000193004 R-3 PLJCX C000193005 R-4 PLJDX C000193006 R-5 PLJEX 0000898745 S000058848 Principal LifeTime Hybrid 2065 C000193007 Institutional Class PLHHX C000193008 R-6 PLHRX C000199326 Class J PHJDX 0000898745 S000060089 Government Money Market Fund C000196721 Institutional PGVXX C000239771 Class R-6 PGWXX 497 1 pfi1031saisupp011223.htm 497 Document

Principal Funds, Inc.
Supplement dated January 12, 2023
to the Statement of Additional Information dated March 1, 2022
as amended and restated November 18, 2022
(as previously supplemented)

This supplement updates information currently in the Statement of Additional Information. Please retain this supplement for future reference.

On December 13, 2022 the Funds’ Board elected Katharin (Kathy) S. Dyer and Frances P. Grieb as Independent Board Members effective January 26, 2023.

LEADERSHIP STRUCTURE AND BOARD
In the Committee table, delete the members of the Audit Committee and Operations Committee and replace with the following:

Committee and Independent Board Members
Audit Committee
Victor Hymes, Chair
Leroy T. Barnes, Jr.
Frances P. Grieb
Elizabeth A. Nickels
Meg VanDeWeghe
Operations Committee
Padel L. Lattimer, Chair
Craig Damos
Katharin S. Dyer
Karrie McMillan



Under Independent Board Members, add the following in alphabetical order:

Katharin (“Kathy”) S. Dyer. Ms. Dyer has served as an Independent Board Member of the Fund Complex since January 2023. She is the founder and Chief Executive Officer of PivotWise, a firm providing strategic advice focused on digital transformation. Ms. Dyer currently serves as a director of Liquidity Services and the Grameen Foundation. She previously served as a director of Providence Health from 2019-2021, Noora Health from 2018-2021, YWCA of Nashville and Middle Tennessee from 2016-2022, and CARE from 2001-2013. She was formerly employed by IBM Global Services as a Global Partner and a member of the senior leadership team from 2016 to 2018. Ms. Dyer was a member of the Global Management Team at American Express Company from 2013 to 2015. Ms. Dyer earned her Bachelor of Arts from the University of Kentucky and her Master of Business Administration from the University of Maryland. Through her education, employment experience, and experience as a board member, Ms. Dyer is experienced with financial, information and digital technology, investment, and regulatory matters.

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Frances P. Grieb. Ms. Grieb has served as an Independent Board Member of the Fund Complex since January 2023. Ms. Grieb currently serves as a director of First Interstate BancSystem, Inc. and the National Advisory Board of the College of Business at the University of Nebraska at Omaha. She is a member of the American Institute of Certified Public Accountants and the National Association of Corporate Directors. From 2014 to 2022, she served as a director of Great Western Bancorp, Inc. Ms. Grieb is a retired partner having served in various leadership roles at Deloitte LLP from 1982 to 2010. Ms. Grieb is a retired Certified Public Accountant. Ms. Grieb earned her Bachelor of Science in Business Administration with an emphasis in Accounting from the University of Nebraska at Omaha. Through her education, employment experience, and experience as a board member, Ms. Grieb is experienced with financial, accounting, investment, and regulatory matters.

Under Additional Information Regarding Board Members and Officers, in the INDEPENDENT BOARD MEMBERS table, add the following in alphabetical order:

INDEPENDENT BOARD MEMBERS
Name, Address,
and Year of Birth
Board Positions Held
with Fund Complex
Principal Occupation(s)
During Past 5 Years
Number of
Portfolios
Overseen
in Fund
Complex
Other
Directorships
Held During
Past 5 Years
Frances P. Grieb
711 High Street
Des Moines, IA 50392
1960
Director, PFI and PVC (since 2023)
Trustee, PDSRA and PETF (since 2023)
Retired
131
First Interstate BancSystems, Inc. (2022-present)
Great Western Bancorp, Inc. and Great Western Bank (2014-2022)

Katharin S. Dyer
711 High Street
Des Moines, IA 50392
1957
Director, PFI and PVC (since 2023)
Trustee, PDSRA and PETF (since 2023)

Founder and Chief Executive Officer, Pivotwise (consulting services)
Global Partner, IBM (technology company) from 2016 – 2018
131
Liquidity Services, Inc


In the Board Member Ownership of Securities section, add the following columns/rows alphabetically to the Independent Board Members Table:


Independent Board Members
Fund
Dyer(2)
Grieb(2)
Core Fixed Income
A
A
Core Plus Bond
A
A
Diversified Income
A
A
Diversified International
A
A
Equity Income
A
A
Global Emerging Markets
A
A
Global Real Estate Securities
A
A
High Yield
A
A
LargeCap S&P 500 Index
A
A
MidCap
A
A
Principal LifeTime 2030
A
A
Real Estate Securities
A
A
SAM Conservative Growth
A
A
SmallCap
A
A
Total Fund Complex
A
A
(2) Appointment effective January 26, 2023.

2







In the Board Member and Officer Compensation section, add the following rows (alphabetically) and footnote to the table:

Board Member
Funds in this SAI
Fund Complex
Katharin (“Kathy”) S. Dyer(2)
$0
$0
Frances P. Grieb(2)
$0
$0
(2) Ms. Dyer and Ms. Grieb were both elected to the Board effective January 26, 2023 and therefore did not receive compensation from the Funds or the Fund Complex for the fiscal year ended October 31, 2022.


3