December 30, 2013

Ms. Nora Everett, President

Principal Funds, Inc.

Principal Financial Group

Des Moines, IA 50392-2080

Dear Ms. Everett

Principal Management Corporation intends to purchase the following shares (the “Shares”):

Principal Funds, Inc. -	Purchase Amount	Shares Purchased
Opportunistic Municipal Fund - Class P	$10,000	1,084.599

Each share of the Opportunistic Municipal Fund has a par value of $0.01 and a price of $9.22 per share. In connection with such purchase, Principal Management Corporation represents and warrants that it will purchase such Shares as an investment and not with a view to resell, distribute or redeem.

PRINCIPAL MANAGEMENT CORPORATION

BY __/s/ Michael D. Roughton_________________

Michael D. Roughton

Senior Vice President and Counsel