October 24, 2011

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
Global Multi-Strategy Fund – Class A	$	10,000		1,000
Global Multi-Strategy Fund – Institutional	$	10,000		1,000
Global Multi-Strategy Fund – Class P	$	10,000		1,000

Each share of the Global Multi-Strategy Fund has a par value of $0.01 and a price of $10.00 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 LIFE INSURANCE COMPANY
BY	/s/ Michael Roughton
	Michael D. Roughton
	Vice President and Associate General Counsel